Ajit Mishra, VP - Research, Religare Broking:
Markets regained momentum after a minor pause in yesterday’s session and closed higher by nearly a percent. The benchmark opened in the green and gradually inched higher as the day progressed led by a surge in FMCG, IT and realty stocks. Finally, the Nifty ended near day’s high at 17,234 levels, up by 0.9%. On the sector front, except for auto and PSU banks, all the other indices posted gains. The broader markets too traded in line with the benchmark.
We’re seeing buying on every dip across sectors which shows that the bulls are in control. Besides the supportive global cues, the recent positives from the domestic front viz. the pace of the vaccination drive and further reopening by the states are fuelling the momentum. We’re now eyeing 17,500 in Nifty. Amid all, we reiterate our positive yet cautious stance and suggest focusing on accumulating quality stocks on dips.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities:
Markets were back in action after yesterday's small correction and benchmark Nifty found support near 17050 level. After a muted opening the index successfully cleared the intraday resistance of 17150 and is comfortably trading above the same which is largely positive.
The intraday rally indicates further uptrend from the current levels but the market has formed a double top kind of formation. For the trend following traders, 17150 would be the key support level, and above the same the uptrend structure could continue up to 17300-17350 levels. On the flip side, if the Nifty slips below 17150, it may trigger a quick intraday correction till 17100-17075 levels.
Vinod Nair, Head of Research at Geojit Financial Services:
Domestic indices nudged higher tracking cues from positive economic data, FII buying and mixed global markets ahead of the release of US job data. Economic data is nudging the performance of core sectors like capital goods & industrials while the recent high performance of the market is also tempting investors to shift to safer defensive sectors. All major sectors followed the market trend while the auto sector lost ground due to weak sales.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed the continuation of a positive trend, after sustaining above the level of 17100. If the market sustains above the level of 17200-17250, it is expected that the market to gain momentum, leading to an upside projection till 17400-17450 level.
The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index again showed positive move and closed a day at 17233 with gains of nearly one percent forming a bullish candle on the daily chart. The index has shifted its support to 17,175-17,050 zone and if managed to hold above-said levels, we may see more northward moment in coming sessions. Also dips around said levels will be again fresh buying opportunity and if failed to hold then we may see good profit booking still make or break level is at 17k mark, on the higher side strong hurdle is coming near 17300-17350 zone.
S Ranganathan, Head of Research at LKP securities:
Bulls took complete control today as indices rose by almost a percentage to hit record highs on the back of IT, Cement & FMCG biggies. The broader markets were buzzing as the formalisation of the economy is enabling organised branded players to gain share. High-Frequency indicators are pointing towards an uptick in rail freight, consumer durables and appliances ahead of the festive season.
Market Close:
Benchmark indices ended higher with Nifty closing above 17200 led by IT and FMCG stocks.
At close, the Sensex was up 514.33 points or 0.90% at 57852.54, and the Nifty was up 157.90 points or 0.92% at 17234.20. About 1933 shares have advanced, 1187 shares declined, and 143 shares are unchanged.
Shree Cements, HDFC Life, Cipla, TCS and HUL were the top Nifty gainers. M&M, Coal India, Bajaj Auto, ONGC and Divis Labs were among the top losers.
Except auto and PSU Bank, all other sectoral indices ended in the green with IT and Pharma indices up 1 percent each. BSE midcap and smallcap indices gained over 0.5 percent each.
Ami Organics IPO issue oversubscribed 3.27 times on Day 2
The public offer of Ami Organics, the specialty chemical company, witnessed a strong demand from investors as it was oversubscribed by 3.27 times on September 2, the second day of bidding.
The offer has received bids for 2.13 crore equity shares against the IPO size of 65.42 lakh equity shares, subscription data available on the exchanges showed.
The response from retail investors to the issue remained strong as they have put in bids 5.35 times their reserved portion. A part set aside for non-institutional investors was subscribed 90 percent and that of qualified institutional buyers saw 1.39 times subscription.
Vijaya Diagnostic Centre IPO issue subscribed 42% on day 2:
The IPO of Vijaya Diagnostic Centre, one of the largest integrated diagnostic chain in South India, has so far received muted response from investors as it was subscribed 42 percent on September 2, the second day of bidding.
The public issue has received bids for 1.06 crore equity shares against offer size of 2.50 crore equity shares, the subscription data available on the exchanges showed.
Retail investors have put in bids for 68 percent of their reserved portion and that of employees 44 percent of their portion. A part set aside for qualified institutional buyers was subscribed 26 percent and that of non-institutional investors 4 percent
Buzzing
Mahindra and Mahindra (M&M) share price slipped more than 2 percent intraday on September 2 amid ‘No Production Days’ in its automotive division plants in September 2021 due to shortages in the supply of
The company said that its automotive division continues to face supply shortages of semiconductors, which has got further accentuated due to Covid lockdowns in some parts of the world.
Consequently, the company will be observing ‘No Production Days’ for around 7 days which is estimated to result in a reduction in production volumes of the automotive division by 20-25 percent, the company said in its press release.
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Here are the list stocks that have touched their 52 week highs during the day;
BSE Midcap index gained nearly 1 percent supported by the Vodafone Idea, CONCOR, Adani Power:
Euro near 1-mth peak versus dollar
The euro held near a one-month high versus the dollar and a six-week peak to the pound, supported by hawkish comments from ECB policymakers after data showed inflation at a decade high and amid signs the Fed is not hurrying to tighten policy.
Market at 3 PM
Benchmark indices extended the gains with Nifty trading at fresh record high led by the IT and FMCG stocks.
The Sensex was up 538.57 points or 0.94% at 57876.78, and the Nifty was up 162.80 points or 0.95% at 17239.10. About 1883 shares have advanced, 1050 shares declined, and 129 shares are unchanged.
EasyTrip Planners shares jump 5%: Anand Rathi sees 24% upside:
Shares of EasyTrip Planners jumped 5 percent in morning trade on BSE on September 2 while the market benchmark Sensex was up with mild gains.
On September 1, the company said its 13th annual general meeting (AGM) will be held on September 28, 2021.
The company also announced the appointment of Priyanka Tiwari as its Secretary and Chief Compliance Officer.
Brokerage firm Anand Rathi Share and Stock Brokers pointed out the second wave of the coronavirus pandemic dealt a blow to the travel and tourism industry but the bookings are normalising with time as the company has recorded 63 percent of the entire Q1FY22 revenue in the month of July.
Anand Rathi has a buy call on the stock with a target price of Rs 550 which is a 24 percent upside from the stock's September 1 closing of Rs 443.55.
NSE IT index rose 1 percent led by the Mindtree, TCS, Mphasis
Bharti Airtel conducts India’s first cloud gaming session in a 5G environment
Marking yet another industry first on 5G, Bharti Airtel said that it has successfully conducted India’s first cloud gaming session in a 5G environment. The demonstration was conducted in Manesar (Gurgaon) as part of the ongoing 5G trials using spectrum allotted by the Department of Telecom (Government of India), the company said. The stock was trading at Rs 668.45, up Rs 2.25, or 0.34 percent. It has touched a 52-week high of Rs 673.75.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities:
Crude oil prices traded lower with benchmark NYMEX WTI crude oil prices were trading 0.36% to $68.34 per barrel for the day. MCX Crude oil September futures were trading marginal up at Rs 4,998 per barrel by noon.
Crude oil prices are expected to trade sideways to up for the day with resistance at $70 and support at $67 per barrel. MCX Crude oil September has support at Rs 4,930 and resistance at Rs 5,080.
European markets are trading flat with DAX and CAC up marginally in the green
Market update at 2 PM:
Sensex is up 391.89 points or 0.68% at 57730.10, and the Nifty jumped 122.40 points or 0.72% at 17198.70. HDFC LIfe, Hindustan Unilever and TCS are the top gainers while IEX, HDFC Life and Bharti Airtel are the most active stocks.
HDFC Life Insurance share price hits 52-week high
HDFC Life Insurance Company share price touched 52-week high of Rs 775.65and rising percent intraday on September 2 as company board is going to consider fundraising on September 3.
"A meeting of the board of directors of HDFC Life Insurance Company is proposed to be held on Friday, September 3, 2021 to consider issue of equity shares and / or other securities of the company by way of preferential allotment," company said in its release.
Adani Green Energy raises $750 million via 3-year Notes
Adani Green Energy has priced its maiden ListCo senior issuance of USD 750 million through a 3 year issuance under the 144A / Reg S format, at a fixed coupon of 4.375%. The funds shall be utilised towards equity funding of the capex for underlying renewable projects under construction by AGEL. Under the structure, AGEL can draw upto USD 1,700 million over the course of time subject to the covenants of the structure. The stock was trading at Rs 1,076.05, down Rs 2.70, or 0.25 percent. It has touched an intraday high of Rs 1,090 and an intraday low of Rs 1,052.
Gaurav Garg, Head of Research at CapitalVia Global Research:
Indian benchmark had a cautious start today around level of 17100. Some support will come as Goods and services tax (GST) collection moderated in August compare to the previous month. Economic activity gained pace with a decline in Covid-19 cases. The International Monetary Fund (IMF) has sharply increased its allocation of Special Drawing Rights (SDR) to India, in line with the country’s existing quota in the fund. Our research suggests that if markets sustained above 17000, we could expect the market to gain momentum, leading to an upside projection till 17450-17500.
Sun Pharma Advanced Research approves raising up to Rs 1,800 crore:
Sun Pharma Advanced Research Company approved to raise the funds by way of issuing equity shares, convertible warrants, preference shares/ bonds /debentures /any other instruments whether convertible into equity or not, American Depository Receipts, Global Depository Receipts, Foreign Currency Convertible Bonds, or any other securities, for an aggregate consideration of up to Rs 1,800 crore.
Sun Pharma Advanced Research Company was quoting at Rs 300.55, down Rs 1.90, or 0.63 percent on the BSE.
Yash Gupta, Equity Research Analyst, Angel Broking:
We have seen a sudden spike in the Grey Market Premium of Ami organics in last 2 days. IPO opens on 1st of September 2021 and on the first day IPO received a good response from Retail investors as well as from Qualified investors. On the first day itself, IPO got fully subscribed, by the end of the first day IPO oversubscribed by 190%.
As per the different market news currently, the grey market premium of Ami organics is at Rs 120-150, which has increased from Rs 45 before the IPO opens.
Based on FY2021 numbers, the IPO is priced at a Price to Earnings of 35.6 times and EV/EBITDA of 25.7 times at the upper price band of the IPO, which is on the higher side, compared to the listed peer group. The company already has a higher market share of 70%-90% in key API’s which will limit growth in the near future. Given the expensive valuation, we assigned a neutral recommendation to the Ami Organics IPO.
Market at 1 PM
Benchmark indices extended the gains and trading at day's high with Nifty around 17,200.
The Sensex was up 339.86 points or 0.59% at 57,678.07, and the Nifty was up 109.00 points or 0.64% at 17,185.30. About 1898 shares have advanced, 975 shares declined, and 114 shares are unchanged.
Vijaya Diagnostic Centre IPO issue subscribed 35% on day 2:
The IPO of Vijaya Diagnostic Centre, one of the largest integrated diagnostic chain in South India, has so far received muted response from investors as it was subscribed 35 percent on September 2, the second day of bidding.
The public issue has received bids for 88.53 lakh equity shares against offer size of 2.50 crore equity shares, the subscription data available on the exchanges showed.
Retail investors have put in bids for 57 percent of their reserved portion and that of employees 26 percent of their portion. A part set aside for qualified institutional buyers was subscribed 23 percent and that of non-institutional investors 2 percent.
Ami Organics IPO oversubscribed by 2.43 times on second day:
The public offer of Ami Organics, the specialty chemical company, has seen a strong demand from investors as it was oversubscribed by 2.43 times in the afternoon on September 2, the second day of bidding.
The offer has received bids for 1.59 crore equity shares against IPO size of 65.42 lakh equity shares, the subscription data available on the exchanges showed.
Chemplast Sanmar redeems entire outstanding NCDs:
Chemplast Sanmar has redeemed the entire outstanding NCDs that were issued in December 2019 by the Company.
The redemption of these NCDs amounting to Rs 1238.25 crore, which was part of the objects of the primary issue, was made using the net proceeds of fresh issue of equity shares of the Company (IPO) made in August 2021.
Chemplast Sanmar was quoting at Rs 615.20, up Rs 15.35, or 2.56 percent on the BSE.
Minda Corporation arm to buy 26% stake in EVQPOINT Solutions
Spark Minda Green Mobility Systems Private Limited (Wholly Owned Subsidiary of Minda Corporation Limited) (SMGMS) has signed Shares Subscription and Shareholders Agreement with EVQPOINT Solutions Private Limited (EVQPOINT) and its promoters & Other Ancillary Agreements with EVQPOINT including Technology License Agreement (TLA) on September 01, 2021.
SMGMS has agreed to subscribe for allotment of at least 26% of the equity share capital of the EVQPOINT and EVQPOINT agreed to issue and allot the said Equity Shares on mutually agreed terms & conditions.
Minda Corporation was quoting at Rs 128.90, up Rs 5.75, or 4.67 percent on the BSE.
Kotak Mahindra Bank completes sale of 8.6% stake in Airtel Payments Bank
Kotak Mahindra Bank has completed sale of 20,00,00,000 equity shares (~ 8.57% shareholding on a fully diluted basis) of Airtel Payments Bank to Bharti Enterprises for an aggregate sale consideration of Rs 294.8 crore.
Kotak Mahindra Bank was quoting at Rs 1,767.90, up Rs 22.10, or 1.27 percent on the BSE.
Bajaj Healthcare has announced to start commercial production of Nimesulide API at Tarapur unit:
Bajaj Healthcare has announced to start commercial production of Nimesulide API at Plot No. N-92, MIDC, Tarapur. “Nimesulide API” used for relief from pain and prevention of fever. The company has received approval from FDA Maharashtra (India), to manufacture and market “Nimesulide API” as approved medication for pain relief and prevention of fever in India and will commence its commercial production from tomorrow onwards, as per the company release.
Bajaj Healthcare Ltd was quoting at Rs 895.65, up Rs 15.75, or 1.79 percent on the BSE.
Kitex Garments share price hit 10% upper circuit
Kitex Garments share price hit 10 percent upper circuit of Rs 164.10 per share on BSE after Telegana government approved its expansion plan.
“The proposal submitted by Kitex Garments before the Government of Telegana towards expansion plan has been approved,” the company said in exchange filing. The government order will be issued within a few days, it said.
Market at 12 PM
Benchmark indices extended the gains and trading at day's high level with Nifty above 17,100.
The Sensex was up 302.42 points or 0.53% at 57,640.63, and the Nifty was up 96.00 points or 0.56% at 17,172.30. About 1915 shares have advanced, 898 shares declined, and 116 shares are unchanged.
ICICI Direct
US dollar declined 0.12% amid weaker-than-expected jobs data. US ADP Employment report showed private payrolls rose by 374,000 in August 2021 compared to 326,000 in the preceding month but well short of 613,000 forecast. However, a sharp fall was prevented as manufacturing PMI data showed activity in the sector grew in August.
Rupee future maturing on September 28 depreciated by 0.14% in yesterday’s trading session on firm dollar and weak stock indices. However, a sharp fall was prevented on FII inflows.
The rupee is expected to trade with a positive bias on rise in risk appetite in global markets, weakness in dollar and persistent FII inflows. Further, softening of crude oil prices will support rupee. Opec and its allies said they agreed to continue their existing policy of gradual output increases. However, sharp gains may be prevented on concern over uptick in daily Covid-19 cases in India.
Globus Spirits operations at Vaishali plant disrupted due to flood:
Globus Spirits informed that the operations at the company’s plant located in Village Dhudhva, Tehsil: Jandaha, District: Vaishali, Bihar have been temporarily disrupted owing to flooding and water logging at the factory premises caused by heavy rains, as per the company release.
Globus Spirits touched a 52-week high of Rs 1,060.30 and was quoting at Rs 1,055.10, up Rs 45.25, or 4.48 percent on the BSE.
Asia stocks ease off 5-week top:
Asian share markets were in a cautious mood on Thursday as concerns grew over the Chinese economy after a run of soft data, while the risk of a sub par U.S. payrolls report kept the dollar on the defensive.
Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research comments on auto sales
: While PV volumes for the top 10 manufacturers in India recorded a growth of 13.3%YoY during Aug’21 amid a lower base factor, the sales saw a sequential decline of 9.2% MoM compared to Jul’21. While it can be partly attributed to the weakness in domestic demand, the production challenges across the PV sector due to a severe global shortage of semiconductors has also been a significant factor in lower despatches. The sales of the market leader, MSIL which reported a decline in sales of 5.7% YoY & 17.7% MoM, reflected such supply constraints.
The steady recovery in the core infrastructure sector and the removal of restrictions on the movement of goods have started to get reflected in the CV sales trajectory which had witnessed a weakness for a protracted period. The total domestic sales of the top 4 market leaders in the CV, space witnessed a growth of 18.0%YoY in Aug 2021.
Just Dial Board approves allotment of 2.12 crore equity shares at Rs 1,022.25 per share
The Allotment Commiftee of the Board of Directors of the company at their meeting held on Septembet 1,2021, approved the allotment of 2,11,77,636 equity shares of the Company of face value of Rs 10 each fully paidup in dematerialised form by way of preferential allotment on a private placement basis for cash consideration to Reliance Retail Ventures Limited at a price of Rs 1,022.25 per equity share aggregating to Rs 2,164,88,38,401. The stock was trading at Rs 984.75, up Rs 26.65, or 2.78 percent. It has touched an intraday high of Rs 988.20 and an intraday low of Rs 960.
Adani Ports handled cargo volume of 23.32 mmt in August, up 21% YoY
Adani Ports and Special Economic Zone during the month of August, 2021 handled a cargo volume of 23.32 MMT at its ports thus registering a 21% growth on Year on Year basis, the compamny said in an exchange filing. The stock was trading at Rs 756.85, up Rs 11.85, or 1.59 percent. It has touched an intraday high of Rs 760.30 and an intraday low of Rs 744.30.
Market at 11 AM
Benchmark indices were trading at day's high level amid volatility.
The Sensex was up 196.23 points or 0.34% at 57534.44, and the Nifty was up 65.40 points or 0.38% at 17141.70. About 1837 shares have advanced, 912 shares declined, and 100 shares are unchanged.
Buzzing
BLS International Services touched a 52-week high of Rs 233.30, rising 14 percent intraday on September 2 after company signed a contract with The Republic of Philippines Department.
" .... signed a contract with The Republic of Philippines Department of foreign affairs to provide ePassport renewal services initially starting with Italy, Qatar and Malaysia," company said in the release.
M&M to observe 'No Production Days' in September on semiconductor shortage:
The company’s automotive division continues to face supply shortages of semiconductors, which has got further accentuated due to Covid lockdowns in some parts of the World.
Consequently the Company will be observing ‘No Production Days’ of around 7 days in its Automotive Division plants in the month of September, 2021, which is estimated to result in reduction in Production Volumes of the Automotive Division in September, 2021 by 20-25%, company said in its release.
The revenue and profitability will be impacted in line with the fall in production volumes. The company is taking various cost optimisation measures to limit the impact, it added.
At 10:41 hrs Mahindra and Mahindra was quoting at Rs 765.90, down Rs 4.25, or 0.55 percent on the BSE.
Buzzing
Vedanta share price was up over a percent on September 2, a day after the company announced interim dividend.
The mining major 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.
BSE Realty index gained 1 percent led by the Sobha, Godrej Properties, Phoenix Mills:
Tata Motors share price slips on cut down of production
Tata Motors share price slipped on September 2 after the company was forced to cut down its production due to a shortage of semiconductors.
"Semiconductor shortage continues to impact the auto industry globally. The recent lockdowns in East Asia have worsened the supply situation and hence Tata Motors is forced to moderate production and offtake volumes in the coming months," the company said in its release.
At 10:22 hrs Tata Motors was quoting at Rs 292.15, down Rs 3.05, or 1.03 percent on the BSE.
BSE FMCG index rose 1 percent supported by the GM Breweries, Parag Milk Foods, Som Distilleries:
Macquarie on Titan Company
Macquarie has maintained outperform call on the stock and raised the target price to Rs 2,150 per share.
There was a limited disruption in operating environment of unorganised peers and building blocks are in place to drive up regulatory compliance, said broking house.
It maintained FY23/24 EPS estimates.
Market at 10 AM
Benchmark indices were trading higher in the volatile session with Nifty above 17100.
The Sensex was up 134.11 points or 0.23% at 57472.32, and the Nifty was up 45.50 points or 0.27% at 17121.80. About 1836 shares have advanced, 759 shares declined, and 105 shares are unchanged.
Coal India August production up 14.6% at 42.6 million tonns
Coal India has reported August provisional production at 42.6 million tonns, up 14.6 percent from 37.2 million tonns in the same month last year.
Its August provisional offtake was up 9.5 percent at 48.6 million tonns versus 44.4 million tonns, YoY.
At 09:56 hrs Coal India was quoting at Rs 142.10, up Rs 1.40, or 1.00 percent on the BSE.
