Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities:
Markets witnessed profit-taking as rampaging bulls took a break after three days of rally. Benchmark Nifty has formed a bearish candle which indicates that profit booking at higher levels could continue in the near future. However, the medium-term trend remains bullish.
As the rally has been overstretched, markets may witness narrow range activity. For the trend following traders, the 16980-16950 level would be the key level to watch out for. On the flip side, 17150-17200 could act as an intraday resistance level. In case of intraday correction, contra traders can take a long bet near the support level of 16950 with a strict 35 points stop loss.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities
Nifty continues to trade with a positive bias for the medium term and is expected to test 18,000 and above. Trend support for the index is seen at 16,760 levels.
In the short term since the movement has been aggressive, some corrections cannot be ruled out. We believe buying on dips is advisable in the broader markets. We expect positive bias in realty and auto stocks, while BFSI space remains in momentum and should be held onto.
Ajit Mishra, VP - Research, Religare Broking:
Markets took a breather after the recent surge and settled with a cut of nearly half a percent. The benchmark started on a positive note despite mixed global cues however it could not hold gains at higher levels as investors chose to book profits as the day progressed. Consequently, the Nifty closed lower by 0.3% at 17,076 levels.
The sectoral indices witnessed a mixed trend wherein IT and metals were the top losers, while realty posted strong gains of nearly 5% followed by PSU bank and media. The broader market also continued its positive momentum and ended higher in the range of 0.3-0.8%.
Markets may see some consolidation ahead and it would be healthy. We reiterate our view to focus on the banking index for further directional move in Nifty. On the downside, the Nifty may find support around the 16,900 zone. Considering the trend, traders should continue with the “buy on dips” approach.
S Hariharan, Head - Sales Trading, Emkay Global Financial Services:
“In conjunction with sharp appreciation in INR (USD dropped from 74.3 to 72.8) over the last 3 sessions, FII flows into equities have also picked up pace. This is in some part attributable to inflows at MSCI rebalance on 31 Aug. Alongside these flows, FIIs have also been increasing net long positions in single stock futures for the entire month of Aug – an increase of nearly $3.5 bn.
Nifty continued to out-perform mid-cap & small-cap indices, as Retail sentiment continues to be relatively weak – Retail net long positioning in single stocks has come down by $2 bn. FMCG and consumption-related plays continue to be the leaders in the rally, while sentiments appear to be cooling in IT sector on account on rich valuations and consensus over-weight positioning.
Banking continues to be the weakest sector relative to the market. Strong liquidity conditions both domestically & abroad have helped push through a heavily loaded IPO pipeline, and domestic MFs have seen strong responses to new fund offers as well.
NMDC August production up 88.9%:
NMDC August production was up 88.9% at 3.06 mt versus 1.62 mt and its sales were up 62.6% at 2.91 mt versus 1.79 mt, YoY.
Deepthi Mathew, Economist at Geojit Financial Services:
The favourable base effect aided the domestic economy to clock a double-digit growth rate. When compared to Q1FY20, India's economy contracted by 9.2 percent. It shows that the economy is still on the recovery path. Government spending and the export sector registered strong growth, relative to the pre-covid level of Q1FY20 at 7.35 percent and 8.7 percent, respectively.
Vedanta announces interim dividend of Rs 18.50 per share
Mining major Vedanta Limited has announced a first interim dividend of Rs 18.50 per share. The decision was confirmed at the meeting of Board of Directors held on September 1, the company said in a regulatory filing.
Vedanta ended at Rs 297.95, down Rs 4.95, or 1.63 percent on the BSE.
S Ranganathan, Head of Research at LKP securities:
On a day of high volatility, indices gave up gains as profit booking was seen across IT & metal names. The pace of vaccinations during the last couple of days enthused market participants even as the street took stock of GDP and GST numbers today, the focus now shifts to few high-frequency consumption indicators.
Vinod Nair, Head of Research at Geojit Financial Services:
Despite a strong opening due to favourable GDP data, domestic indices failed to hold onto its early gains due to profit booking strategy from the recent rally. India’s GDP rose due to the low base effect and was powered by private consumption expenditure & investment. The auto sector showed a flattish trend as sales for August saw a decline following supply constraints.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some lackluster movement and an attempt to hold the level around the Nifty 50 Index level of 17100. If the market is able to sustain the level of 17000, it can witness higher levels of 17250-17300. The momentum indicators like RSI, MACD indicating a positive outlook to continue.
Market Close:
Benchmark indices ended on negative note after hitting record levels in the early trade on September 1.
At close, the Sensex was down 214.18 points or 0.37% at 57338.21, and the Nifty was down 55.90 points or 0.33% at 17076.30. About 1461 shares have advanced, 1637 shares declined, and 150 shares are unchanged.
Asian Paints, Tata Motors, SBI Life Insurance, Axis Bank and Nestle were the top Nifty gainers. M&M, Cipla, Tata Steel, Hindalco Industries and Bajaj Finserv were among the top losers.
Among sectors, metals and IT indices fell over 1 percent each, while capital goods, power and realty indices rose 1-5 percent. BSE midcap and smallcap indices ended in the green.
Goldman Sachs on BHEL
Goldman Sachs has maintained sell rating on the stock with a target at Rs 23 per share.
There was disappointing last few years on weak execution, high fixed costs & COVID Disruptions. However, the focus on cost rationalisation & cash collection is generating results.
It believe there is only so much that the company can do on these fronts and fundamental issues, are a lack of opportunities on thermal power, research firm added.
Bharat Heavy Electricals was quoting at Rs 54.65, up Rs 2.10, or 4.00 percent on the BSE.
OPEC+ raises 2022 oil demand growth forecast
The OPEC+ group of oil producers has made an upward revision to its 2022 oil demand forecast ahead of a meeting on Wednesday as the group faces pressure from the United States to raise output more quicker to help to support the global economy.
Two OPEC+ sources said the group's experts have revised its 2022 oil demand growth forecast to 4.2 million barrels per day (bpd), up from the previous forecast of 3.28 million bpd.
Oil price climbs before OPEC+ policy meeting
Oil prices rose on Wednesday before an OPEC+ meeting in which the producer club is expected to stick to a plan to add 400,000 barrels per day (bpd) each month through to December.
Nifty PSU Bank index added 1 percent led by the J&K Bank, PNB, Bank of Baroda, Indian Bank:
TVS Motor August auto sales:
TVS Motor Company registered sales of 290,694 units in August 2021 as against sales of 287,398 units in the month of August 2020.
Total two-wheelers registered sales of 274,313 units in August 2021 as against sales of 277,226 units in August 2020.
The Company's total exports registered a growth of 61% with sales of 109,927 units in the month of August 2021 as against 68,347 units in August 2020.
TVS Motor Company was quoting at Rs 528.85, up Rs 3.75, or 0.71 percent on the BSE.
Euro zone unemployment falls as expected in July
Euro zone unemployment fell as expected in July as 350,000 people found jobs compared to the previous month, the European Union's statistics office Eurostat said on Wednesday.
Eurostat said the unemployment rate in the 19 countries sharing the euro fell to 7.6% of the workforce, in line with economists' consensus in a Reuters poll, from 7.8% in June.
This meant there were 12.334 million people registered as unemployed in the euro zone in July, down from 12.684 million in June.
Market at 3 PM
Benchmark indices were trading with marginal losses in the final hour of trading dragged by the IT and Metal names.
The Sensex was down 117.97 points or 0.20% at 57434.42, and the Nifty was down 30.10 points or 0.18% at 17102.10. About 1372 shares have advanced, 1561 shares declined, and 127 shares are unchanged.
BSE Realty Index rose 6 percent led by the Brigade Enterprises, Oberoi Realty, Prestige Estate
Vijaya Diagnostic Centre IPO subscribed 18% on day 1 of bidding
The IPO of Hyderabad-based diagnostic chain operator Vijaya Diagnostic Centre has been subscribed 18 percent so far on September 1, the first day of bidding.
The public offer received bids for 44.17 lakh equity shares against an IPO size of 2.5 crore equity shares, subscription data available on exchanges showed.
Retail investors have put in bids for 35 percent of their reserved portion and employees have bought only 3 percent of their portion so far.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices were trading half a percent up to $68.83 per barrel for the day. MCX Crude oil September futures were trading 0.30% down at Rs 5,040 per barrel by noon.
Crude oil prices are expected to trade sideways to up for the day with resistance at $70 and support at $66 per barrel. MCX Crude oil September has support at Rs 4970 and resistance at Rs 5,120.
European markets are trading in the green with FTSE, CAC and DAX up 0.5-1 percent each
ICICI Bank hits Rs 5 lakh crore market cap; what should investors do?
Private sector lender ICICI Bank crossed Rs 5 lakh crore in market capitalisation for the first time only to become the second bank to attain the said feat.
Among banks, HDFC Bank, the country's largest lender by assets, remained at the top with Rs 8.7 lakh crore market capitalisation, while SBI is at the third spot with Rs 3.81 lakh crore market cap, Kotak Mahindra Bank at 4th (Rs 3.47 lakh crore) and Axis Bank at 5th position (Rs 2.46 lakh crore).
Experts largely believe the banking sector to outperform with the expected economic recovery, so ICICI Bank should remain a long term investment.
Market update at 2 PM:
Sensex is up 35.36 points or 0.06% at 57587.75, and the Nifty added 8.80 points or 0.05% at 17141. Asian Paints and Axis Bank are the top gainers while Mahindra & Mahindra and Tata Steel are the top losers.
Met Dept expects June-September rainfall at 96% of average against 101% earlier
Neutral El Nino conditions prevailing since last 4 weeks, likely to continue. Emergence of La Nina conditions likely towards September-end. June-September rainfall likely to be around lower end of normal. Met Dept expects June-September rainfall at 96% of average against 101% earlier.
CRISIL upgrades ratings assigned to the Yes Bank’s instruments:
Life Insurance Corporation of India increases stake in Cadila Healthcare
Life Insurance Corporation of India has bought 0.065 percent stake (6,64,104 shares ) in Cadila Healthcare. With this acquisition the total stake in the company increases to 5.036 percent.
Cadila Healthcare was quoting at Rs 549.80, down Rs 3.80, or 0.69 percent on the BSE.
Gaurav Garg, Head of Research CapitalVia Global Research:
Indian benchmark had start today in positive note hit fresh highs of 17,228. In global markets, traders are evaluating the resilience of global recovery to delta variant and the outlook for central bank stimulus package. Our research suggests that 17200-17300 is a crucial overhead resistance, if markets breaches the resistance level, we can expect the market to gain momentum, leading to an upside projection till 17450-17500.
IEX Power Market Update:
The electricity market at the Indian Energy Exchange achieved a new milestone with a record all time high monthly volume of 9538 MU achieving 74 % YoY growth in August’21.
Indian Energy Exchange touched a 52-week high of Rs 554.90 and was quoting at Rs 548.00, up Rs 43.35, or 8.59 percent.
India GDP, Q1 FY22 - The fastest growing major economy: AnandRathi
With 20.1% growth, India becomes the fastest growing major economy of the world, a position the country is expected to maintain in FY22 and FY23.
Investment, particularly the construction part, has been the major driver. Foreign demand also helped. Consumption and services showed relative weaknesses.
JUST IN
| The Total GST collection stood at Rs 1.12 lakh crore in August 2021 against Rs 1.16 lakh crore in July 2022.
Newgen Software Technologies appoints Tarun Nandwani as COO
The Board of Directors of Newgen Software Technologies at its Meeting held on September 1, 2021, has promoted and designated Mr. Tarun Nandwani as a Chief Operating Officer (COO), a key managerial personnel of the company with effect from 1st September, 2021.
Newgen Software Technologies was quoting at Rs 565.10, down Rs 4.50, or 0.79 percent on the BSE.
Ami Organics IPO subscription updates:
The initial public offering of Ami Organics, the specialty chemical company, was subscribed 1.26 times by afternoon on September 1, the first day of bidding, supported by retail investors.
Investors have put in bids for 82.68 lakh equity shares against the IPO size of 65.42 lakh equity shares, the subscription data available on the exchanges showed.
Retail investors were again out in full force, as the portion set aside for them was subscribed 1.60 times. The part set aside for non-institutional investors saw a 31 percent subscription, while qualified institutional buyers have put in bids 1.39 times their reserved portion.
Market at 1 PM
Indian benchmark indices were trading flat in the volatile session.
The Sensex was up 3.26 points or 0.01% at 57555.65, and the Nifty was up 2.60 points or 0.02% at 17134.80. About 1352 shares have advanced, 1515 shares declined, and 137 shares are unchanged.
Tata Motors monthly sales for August 2021:
Tata Motors sales in the domestic & international market for August 2021 stood at 57,995 vehicles, compared to 36,505 units during August 2020.
Tata Motors was quoting at Rs 290.45, up Rs 3.10, or 1.08 percent on the BSE.
Maruti Suzuki total sales at 130,699 units in August 2021:
Maruti Suzuki India posted total sales of 130,699 units in August 2021. Total sales in the month include domestic sales of 105,775 units, sales to other OEM of 4,305 units and exports of 20,619 units.
Maruti Suzuki India was quoting at Rs 6,750.00, down Rs 94.25, or 1.38 percent on the BSE.
M&M total sales for August 2021 at 30585 vehicles:
Mahindra & Mahindra's overall auto sales (passenger vehicles+commercial vehicles+exports) for the month of August 2021 stood at 30585 vehicles.
In the Utility Vehicles segment, Mahindra sold 15786 vehicles in August 2021. The Passenger Vehicles segment (which includes UVs, Cars and Vans) sold 15973 vehicles in August 2021. Exports for the month of August 2021 were at 3180 vehicles.
Mahindra and Mahindra was quoting at Rs 778.75, down Rs 14.30, or 1.80 percent on the BSE.
Ashok Leyland August auto sales:
Ashok Leyland's August 2021 total sales were up 48 percent at 9,360 units versus 6,325 units, YoY.
Ashok Leyland was quoting at Rs 121.90, down Rs 0.75, or 0.61 percent on the BSE.
Gold listless as investors seek direction from US jobs data
Gold prices were flat on Wednesday as investors awaited a key U.S. jobs report for clues on when the Federal Reserve might start reducing its pandemic-era stimulus measures.
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More than 180 stocks touched their 52 week highs during the day including Titan, Oberoi Realty, Asian Paints.
Nish Bhatt, Founder & CEO, Millwood Kane International
The Q1 GDP print stood in line with estimates, the surge is primarily on account of the low base of the previous year when the country was under a national lockdown. The lockdown witnessed in April 2021 due to the second wave was not as strict as seen in 2020.
Component wise - exports, manufacturing, construction, trade hotels & transport, private consumption helped the final GDP print, whereas services sector pulled it down. The high government spending, good monsoon year, and the improvement in the latest core sector data indicate further improvement in the growth for the quarters to come.
NCC receives one new order worth Rs 877 crore in August:
NCC has received one new order for Rs 877 crore (exclusive of GST) in the month of August, 2021. This order pertains to building division and is received from a state government agency and does not include any internal order, company said in the release.
NCC was quoting at Rs 77.70, down Rs 1.45, or 1.83 percent on the BSE.
Eicher Motors (VECV) August auto sales:
Eicher Motors VECV total sales rose 93.5% at 4,793 units against 2,477 units, YoY. The export rose 221 percent at 803 units against 250 units.
Eicher Motors was quoting at Rs 2,744, up Rs 64.50, or 2.41 percent on the BSE.
Rahul Bajoria, Chief India Economist at Barclays:
India’s Manufacturing PMI (seasonally adjusted) maintained strong expansionary momentum, with index slipping to 52.3 in August from 55.3 in July. We think the second consecutive print above 50 in the index suggests the economy is recovery is holding forth.
The details show that the moderation in headline PMI reflected declines in the new export orders and output components, but stocks of finished goods and inventories continue to indicate some space for production gains in the coming months. The employment PMI dipped below 50 again, suggesting continued sluggishness in the labour market.
With global commodity prices stabilizing, the input prices index moderated slightly, though it remains elevated. However, as activity levels continue to improve, we expect producers to move to increase their margins by closing the gap between input and output prices.
Asian shares rise, dollar near three-week low
Asian shares recovered from earlier losses on Wednesday even as data in several markets suggested global economic growth is slowing, while the dollar inched up from three-week lows.
MSCI's broadest index of Asia-Pacific shares outside Japan turned positive, up 0.32% to its highest since early August, having posted gains in six out of the last seven sessions.
Ami Organics IPO subscribed 58% on day 1:
The initial public offering of Ami Organics, the specialty chemical company, has subscribed 58 percent on September 1, the first day of bidding, supported by retail investors.
Investors have put in bids for 38.25 lakh equity shares against IPO size of 65.42 lakh equity shares, the subscription data available on the exchanges showed.
Retail investors are at the forefront to support the public issue as their reserved portion was subscribed 1.06 times. A part set aside for non-institutional investors saw a 26 percent subscription, but qualified institutional buyers are yet to participate in the offer.
Market at 12 PM
Benchmark indices erased early losses and trading lower dragged by the IT and Metal stocks.
The Sensex was down 145.58 points or 0.25% at 57406.81, and the Nifty was down 44.20 points or 0.26% at 17088.About 1258 shares have advanced, 1560 shares declined, and 143 shares are unchanged.
BSE Power index rose 1 percent supported by the Adani Transmission, Adani Power, Adani Green
Milan Desai, Lead Equity Analyst, Angel Broking:
Escorts total monthly sales declined by ~ 22% MoM to 5,693 units, which is slightly below expectations. Domestic tractor sales were down 27% MoM to 4920 units, while Exports were up 52% MoM to 773 units.
The domestic growth is close to ~ 7% higher than average levels of FY19/20 and is in line with management commentary for the residual volume growth for FY22. We have a positive view on Escorts due to favourable rural sentiments and resumption of construction activity in H2.
