Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors:
USDINR opened lower at 73.79 as FED kept rates on hold but gave a tentative time for tapering from Dec-21 to Jun-22. The Evergrande issue also was also ignored as they paid a small part of their dues. The test will be when their payments get due on 29th September and 4th October.
As Indices rose to dizzying heights and Asian currencies rose against the dollar, rupee also gained towards 73.60 before closing at 73.64. After market hours it is heard that China has asked vendors to prepare for eventual downfall of Evergrande. The Hong Kong Futures fell and rupee fell to 73.74 levels (spot) in the NDF. It seems that the issue is not over as yet and could derail the path of recovery. Range for the rupee is 73.30 to 74.00 for tomorrow.
Sachin Gupta, AVP, Research at Choice Broking:
The Nifty index gained 1.5% during the day ahead of the weekly expiry. After a positive opening, the benchmark index continued the upward move and set an all-time high at 17843.90 levels, managed to close at a day high at 17826.70 levels while Bank Nifty surged more than 2% in a day to close at 37,771.70 levels.
On the technical front, the Nifty50 has been rising continuously upward with making new milestones, which indicates bullish strength and buying interest among the traders. The nifty50 index has reversed after taking support at Middle Bollinger Band on the daily chart and also moved above 21 days SMA. Moreover, on an hourly chart, the Nifty index has settled above 50-HMA with a positive crossover in Stochastic & RSI, which supports the upward trend. At present, Nifty has its immediate support at 17,650 levels, while resistance may come around 18,000 levels.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets continued to scale new highs on the back of abundant liquidity and strong global cues, with Sensex almost on the verge of hitting the 60,000 peaks. The upsurge was mainly on the back of impressive gains in realty stocks.
In the short term, benchmark Nifty has formed a strong bullish breakout candle and has consistently maintained higher bottom series formation, which supports further uptrend from current levels. For day traders, 17,800-17,750-17,720 would be key support levels. On the other hand, 17,900-17,950-17,990 could act as a major resistance level in the short run. Contra traders can take a long bet between 17,750-17,720 with a strict 16,910 support stop loss.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
This ferocious bull market continues to baffle both bears and bulls. Stock markets are all about ups and downs. But this bull market has been an almost one-way street for almost 18 months now. More importantly, this is almost a global phenomenon with China, Hong Kong and a few other countries being the exceptions. The mother market US is leading from the front, ignoring even tapering indications from the Fed.
All previous bull markets in India - 1992-92, 1994, 1998-2000, 2003-07 - had big corrections of 5%, 10%, even 20%. But not now so far. But this will change and the market will correct, perhaps soon, since valuations are hard to justify.
Amateurish money of retail investors is now dominating over the smart money of institutional investors. This may change when FIIs turn into major sellers. We don't know now when and what might trigger that. Taking some money off the table may not be a bad idea even while riding this bull.
Mohit Nigam, Head - PMS at Hem Securities:
Indian benchmark indices extended the early gains and hit record high levels with Sensex closing at 59,885(+1.63%) and Nifty at 17,823(+1.57%). Indian market are continuing positive trend from global market after the US Federal reserve hinted that it may begin easing its support measures for the economy later this year.
On the technical front, market is witnessing a continuous positive trend and it has sustained well above 17,700-750 levels and we believe this up move will extend till 18,000 level in the short term. On the downside 17,600 is the immediate support in Nifty 50 followed by 17,400.
Santosh Meena, Head of Research, Swastika Investmart:
Indian market witnessed a stellar rally where Nifty and Sensex hit their fresh all-time high of 17,844 and 59,957 respectively. Our market is in a roaring bulls market and outperforming global peers where the market took minor correction as a buying opportunity.
The recent correction was driven by China's Evergrande issue and this matter is easing for time being therefore we are seeing a short-covering rally across the globe. The outcome of the Fed meeting is not favorable for the equity market as Fed has mentioned the timeline of bond tapering but the global markets had already corrected ahead of this meeting, so we are seeing a short-covering rally because the market likes clarity instead of uncertainty.
The Indian market has its own positive factors like unlocking, strong growth in the real estate sector, good monsoon, positive developments in government policy, and investor's confidence. The growth momentum in the real estate sector is boosting the sentiment because it has a ripple effect on multiple sectors.
It will be important to see global markets' behavior from here and if they remain calm then our market may continue its outperformance where 18,000 & 60,000 are the psychological hurdle for Nifty and Sensex respectively, however if global markets start to fall once again then we can expect profit booking in our market as well.
Devang Mehta, Head – Equity Advisory, Centrum Broking:
The market took the US Fed statement of starting tapering as soon as November in its stride. Encouraging news on Evergrande crisis also helped to clear some uncertainty on the global front.
Indian markets have been on a roll & the rally today was symbolic of the prevailing strong sentiment locally on the back of reduction in covid cases & the strong vaccination numbers. With improvement in economic activity & the optimism around the capex cycle revival, the earnings trajectory for India Inc will naturally get a big boost.
Most of the companies which are market leaders in their respective domains have seen operating efficiencies & productivity improve & also been able to reduce debt with prominent gain in market share as well. Liquidity remains extremely strong, be it Foreign portfolio investors, Local mutual funds, Insurance companies, Family offices, HNI’s or even the retail investors.
Vinod Nair, Head of Research at Geojit Financial Services:
Amidst a strong start, bulls showed no signs of weakness to soar higher boosted by strong global cues and broad-based buying led by realty, metal and banking stocks. Global markets tempered optimism despite a slightly hawkish tilt by the Fed Reserve intimating that the US Central Bank will begin reducing its asset purchases in November and conclude the tapering process around mid-2022.
However, investors continue to remain on the edge awaiting clarity on the Chinese economy. The domestic reality sector continued its rally sparked by demand revival in the property space.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index witnessed a decisive breakout and closed a day at 17,823 with good gains of one & a half percent forming a bullish candle on the daily chart. The index has witnessed a range breakout which hints if current levels are held then we may witness next quick move towards 18k mark.
Immediate supports for Nifty is shifted to 17,770-17,700 zone and any dip near mentioned supports zone will be again buying opportunity with keeping immediate stop out level below 17,700 zone and if said levels are held we may see the index to march towards 17,900-18,000 zone, which is immediate hurdle zone on the higher side.
S Ranganathan, Head of Research at LKP securities:
Buoyed by positive tailwinds like the progress of the monsoon and pace of vaccinations, bulls upped the ante today in style as the Sensex inched closer towards the 60K mark.
The slew of reforms undertaken during the Pandemic has now begun yielding results and most of the sectoral indices barring the Media Index was up in trade today. Mortgage & Real Estate names were seen buzzing around on incremental positive newsflow.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some positive movements after the market was able to sustain the Nifty 50 Index level of 17,500. Market research shows sustaining above 17,850, the market expect to gain momentum, leading to an upside projection till 18,000 level.
The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.
Market Close
: Benchmark indices ended at fresh record closing high levels amid positive global cues.
At close, the Sensex was up 958.03 points or 1.63% at 59,885.36, and the Nifty was up 276.30 points or 1.57% at 17,823. About 1866 shares have advanced, 1305 shares declined, and 148 shares are unchanged.
Bajaj Finserv, Hindalco Industries, Tata Motors, Larsen and Toubro and Coal India were among major gainers on the Nifty, while losers included HDFC Life, Dr Reddy’s Labs, Nestle India, ITC and Tata Consumer Products.
The broader market outperformed the benchmarks, as BSE midcap and smallcap indices rose 1 percent each.
On the sectoral front, realty index gained nearly 9 percent, while IT, metal, bank, capital goods, oil & gas indices rose 1 percent each.
IIFL Finance to raise up to Rs 1,000 crore via secured bonds
IIFL Finance will open a public issue of secured bonds on September 27, 2021, to raise up to Rs 1,000 crore, for the purpose of business growth and capital augmentation. The bonds offer up to 8.75% yield and high degree of safety.
IIFL Finance was quoting at Rs 275.55, down Rs 1.70, or 0.61 percent on the BSE.
Jefferies Dixon Technologies
Foreign research house Jefferies has maintained buy rating on Dixon Technologies with a target at Rs 5,230 per share.
Research firm see company building capabilities & widening portfolio in next leg of growth and company envisages to tap global markets by growing exports mainly in mobiles & lighting. However, indigenisation prospects & solid execution underpin our conviction, it added.
It estimate FY20-24 sales/profit to register a strong CAGR of +51%/57%.
Dixon Technologies was quoting at Rs 4,382.50, up Rs 210.25, or 5.04 percent on the BSE.
Mahesh Kumar, EVP & Head Capital & Commodities Market, Abans Group:
Strength in dollar index pushed gold prices lower after fed meeting. Gold prices have retraced from yesterday's high of $1788.25 and are again trading towards $1764, with minor losses from yesterday's close.
Gold prices are likely to find support near $1750-$1736, meanwhile immediate resistance is seen around $1782-$1796
Sharad Agrawal, Executive Director – Capital Markets, Knight Frank India:
Indian real estate market is regaining the confidence of the global institutional investors. They see good opportunities in India across the capital stack on both the equity and debt side. Although India remains credit starved, the space left by the NBFCs is being filled by global credit funds who are becoming quite active in the country.
With the declining interest rates in India and cap rate compression, the interest rate gap between overseas and domestic market is narrowing which is opening newer avenues of investments.
The long-term view on India is one of uptrend on commercial absorption on the back of increasing pace of vaccination, which will translate into a strong H2 of FY22. Residential is seeing a significant revival across markets on the back of favourable government policies, pent up demand of 18 months, attractive pricing, and lowest ever mortgage costs.
Investor interest in retail is also slowing coming back as spaces have reopened fully in most markets and people have restarted evaluating opportunities in that space. Hospitality has seen a strong rebound in occupancies on the back of domestic tourist demand, but the ARRs will take some more time to recover given the limited number of foreign travellers. Warehousing and data centres are seeing strong traction on the back of both shopping and entertainment increasing moving to the digital space.
Market at 3 PM
Benchmark indices continued to trade higher with Nifty above 17,800.
The Sensex was up 872.71 points or 1.48% at 59,800.04, and the Nifty was up 255.50 points or 1.46% at 17,802.20. About 1829 shares have advanced, 1170 shares declined, and 116 shares are unchanged.
Nifty Auto index rose nearly 1 percent supported by the Tata Motors, Bharat Forge, Bajaj Auto:
Arihant Capital on Indostar Capital Finance:
We initiate coverage on the stock with buy rating and target price of Rs 437 giving upside potential of 51%, based on 1.3x FY24E P/ABV.
Strong management team, change in business mix towards retail which will lead to higher growth in advances, high capital ratio would drive re-rating in the stock.
We forecast an advances growth of 24% CAGR over FY21-24E. Indostar trades at 0.8x FY24E ABV, which is cheapest among NBFCs.
Indostar Capital Finance was quoting at Rs 295.30, up Rs 6.80, or 2.36 percent on the BSE.
Market update
Sensex is up 845.12 points or 1.43% at 59772.45, and the Nifty jumped247.60 points or 1.41% at 17794.30.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities:
Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices were trading up by 0.35% to $72.48 per barrel for the day. MCX Crude oil September futures were half a percent up near Rs 5,352 per barrel by noon.
Crude oil prices are expected to trade up for the day with resistance at $74 and support at $71 per barrel. MCX Crude oil October has support at Rs 5,280 and resistance at Rs 5,410.
Affle India gets US patent for tech with respect to driving app installations
Affle (India) announced the grant of a patent from US Patent & Trademark Office related to the technology of driving app installations and user interactions during podcasts. This is the fourth US patent granted to Affle, alongwith multiple other patents filed and pending across US, India and Singapore. The stock was trading at Rs 5,144.00, up Rs 96.10, or 1.90 percent. It has touched an intraday high of Rs 5,256.90 and an intraday low of Rs 5,009.20.
Market update at 2 PM:
Sensex is up 769.97 points or 1.31% at 59697.30, and the Nifty jumped 220.60 points or 1.26% at 17767.30. Bajaj Finserv, Tata Motors and Axis Bank are the top gainers while Zee Entertainment, DLF and Bharti Airtel are the most acive stocks.
Softbank-backed OYO may file DRHP next week: Sources
Softbank-backed hospitality firm OYO is all set to file for an initial public offering as early as the next week to raise $1-1.2 billion, according to people privy to the development.
Paras Defence IPO issue oversubscribed by 131 times on last day:
Paras Defence and Space Technologies' maiden public offer continues to witness healthy response from investors. The issue has so far been oversubscribed by 130.71 times receiving bids for 93.33 crore equity shares against IPO size of 71.40 lakh shares on September 23, the final day of bidding.
Retail investors, which remained at the forefront to support the issue, have put in bids 92.43 times their reserved portion, while a part set aside for non-institutional investors (NII or HNIs) is subscribed 364 times.
Qualified institutional buyers, including FIIs, domestic financial institutions and mutual funds, bought 21 times shares against their reserved portion.
G R Infraprojects receives letter of award from NHAI
G R Infraprojects has received Letter of Award from National Highways Authority of India for "Development of 6-lane Amritsar-Bathinda Greenfield section of NH-7S4A from village Tiba on NE-SA to junction with Moga Jalandhar road (NH-703) near Dharamkot (from km 0+000 to km 39+000) as a part of Amritsar-Jamnagar Economic Corridor in the state of Punjab on Hybrid Annuity Mode under Bharatmala Pariyojana Phase-I (Package-1).
G R Infraprojects was quoting at Rs 1,972.50, up Rs 24.45, or 1.26 percent on the BSE.
European stocks rally for third day, business surveys awaited:
European stocks rallied for a third day as the global mood brightened on easing concerns about cash-strapped developer China Evergrande, while investors awaited the latest batch of business surveys.
The pan-European STOXX 600 index rose 0.6% by 0709 GMT and was now set to end the week with solid gains.
Motilal Oswal AMC launches 5 year G-Sec Fund of Fund:
Motilal Oswal Asset Management Company (MOAMC) has announced the launch of its Motilal Oswal 5 Year G-sec Fund of Fund. Known for launching an array of passive funds, this low cost open ended fund of fund scheme will be investing in the units of Motilal Oswal 5 Year G-Sec ETF. The total Assets under management for the passive fund schemes of Motilal Oswal AMC stands at ~ Rs 12,100 crore (August 2021). (Source: MOAMC internal data)
The NFO will be open on September 24, 2021 and shall close on September 30, 2021.
Market at 1 PM
Market gained more than 1 percent with Sensex hitting fresh record high and Nifty holding above 17,700.
The Sensex was up 816.96 points or 1.39% at 59,744.29, and the Nifty was up 233.80 points or 1.33% at 17,780.50. About 1929 shares have advanced, 1000 shares declined, and 130 shares are unchanged.
CRISIL Ratings has reaffirmed the credit rating of Marico
Adani Airport Holdings signs share subscription agreement
Adani Airport Holdings, a wholly owned subsidiary of Adani Enterprises has signed share subscription agreement with Flemingo Travel Retail Private Limited and Mumbai Travel Retail for the purpose of strategic partnership to operate duty free outlets in airports and seaports.
At 12:37 hrs Adani Enterprises was quoting at Rs 1,474.35, up Rs 36.60, or 2.55 percent on the BSE.
Evergrande's second-biggest shareholder plans to sell entire stake
Chinese Estates Holdings, the second-biggest shareholder of embattled developer China Evergrande, said on Thursday it has sold $32 million worth of its Evergrande stake and plans to exit the holding completely.
CLSA maintains buy on Zee Entertainment Enterprises
CLSA maintained buy on Zee Entertainment Enterprises and raised the target price to Rs 400 from Rs 306.
The proposed merger with Sony is positive with favourable risk-reward, big business synergies and strong growth ahead, said CLSA.
Zee Entertainment Enterprises has touched a 52-week high of Rs 362.90 and was quoting at Rs 338, up Rs 1.20, or 0.36 percent.
Asian Markets Update:
Asian shares made cautious gains on Thursday, supported by some positive news from cash-strapped developer China Evergrande Group, while the dollar held near a one-month top after the U.S. Federal Reserve took a hawkish tilt overnight.
However, nerves were still frayed about Evergrande's future and the country's property sector as a whole, with a major test looming on Thursday when $83.5 million in dollar-bond interest payments by the company were due.
Market at 12 PM
Benchmark indices extended the early gains and trading at day's high level with Nifty around 17,750.
The Sensex was up 675.16 points or 1.15% at 59,602.49, and the Nifty was up 195.60 points or 1.11% at 17,742.30. About 2023 shares have advanced, 869 shares declined, and 117 shares are unchanged.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking:
For the coming session, 17610 – 17650 would be seen as immediate hurdles; whereas on the flip side, a break below 17500 would result in retesting of Tuesday’s low of 17400 – 17350. For a short term point of view, 17350 – 17250 is to be seen as key support zone. Any aberration on the global front may result in challenging these levels and hence, it would be handy to know in advance the possible reaction ahead of any such event. Since there is a penultimate weekly expiry in our market as well, we may see higher volatility. So traders should take a note of all these developments and trade accordingly.
We continue to remain cautious on the market and advise against creating aggressive bets for a while. In order to regain the confidence, another couple of days’ strength is quite crucial for the market. Also, all eyes on global market as the next path of action is still to be dictated by them only.
Fitch cuts China growth forecast on property woes
Ratings agency Fitch on Thursday cut its growth forecast for China's economy this year citing a slowdown in the country's colossal property sector, which is also facing headwinds over faltering real estate giant Evergrande.
Fitch Ratings said it expected growth to come in at 8.1 percent this year, compared with a previous 8.4 percent estimate, saying the "main factor weighing on the outlook is the slowdown in the property sector".
BSE Metal index rose 1 percent supported by the APL Apollo, Coal India, Vedanta
Mphasis share price hits 52-week high:
Mphasis share price touched a 52-week high of Rs 3,329.95 and rising over 2 percent on September 23, a day after the company announced the acquisition of US-based Blink Interactive, Inc.
Mphasis shares were quoting at Rs 3,310.50, up Rs 57.50, or 1.77 percent. In the previous trading session, the share closed up 1.69 percent or Rs 54 at Rs 3,253.
"Mphasis Corporation, USA, a wholly-owned subsidiary of the company, has acquired Blink Interactive, Inc, a Washington Corporation, consequent to signing a definitive agreement regarding the acquisition," company said in its release.
JBM Auto shares jump 14%, hits new 52-week high
The company said it has received orders for supply of 500 CNG/electric buses including BS VICNG buses for Delhi Integrated Multi-Modal Transit System Limited, electric buses for Bengaluru Metropolitan Transport Corporation (BMTC), electric buses for Jhansi, Uttar Pradesh and electric buses for multiple corporate clients. These orders will be executed in the current financial year, it said. The stock was trading at Rs 526.75, up Rs 67.25, or 14.64 percent. It has touched a 52-week high of Rs 537.
Nifty Realty Jumps Over 12% In Two Days. Experts Say This Sector Is In A Sweet Spot
As per a report by Motilal Oswal Financial Services, more than 6,000 units have been registered in the first 21 days of September, surpassing the September 2018 total of 5,913 units.... Read More
Market update at 11 AM
Sensex is up 629.33 points or 1.07% at 59556.66, and the Nifty jumped 182 points or 1.04% at 17728.70. Banks and financials including Bajaj Finserv, Axis Bank and SBI are the top gainers while Zee Entertainment, DLF and Godrej Properties are the most active stocks.
Among the sectors, the realty index jumped over 5 percent while the midcap and smallcap indices gained over a percent each.
Nifty Bank gained nearly 2 percent supported by the Axis Bank, AU Small Finance Bank, SBI
Motilal Oswal on Mphasis:
Motilal Oswal has maintained buy rating on Mphasis with a target price of Rs 3,560.
Mphasis is paying USD 94 million, including earn-outs, but excluding retention bonuses. Blink has clocked ~42% revenue CAGR over CY17-21 and has guided at a revenue of USD 33-35m in CY21. This implies a trailing EV/sales of 2.8x, which we view as reasonable, given the strong growth and cross-sell opportunities, said Motilal Oswal.
Coronavirus Update
India added 31,923 new coronavirus infections taking the total tally of COVID-19 cases to 3,35,63,421, while the active cases declined to 3,01,640, the lowest in 187 days, according to the Union Health Ministry data updated on Thursday.
The death toll climbed to 4,46,050 with 282 fresh fatalities, according to the data updated at 8 am.
ICICI Direct:
US dollar increased by 0.26% yesterday after the US Fed signalled that it will begin reducing its monthly bond purchases as soon as November and interest rates increases may follow more quickly than anticipated.
Rupee future maturing on September 28 depreciated by 0.29% in yesterday’s trading session on strong dollar and muted stock indices.
The rupee is expected to depreciate on a strong dollar after US Federal Reserve signalled that the bank will start tapering its USD 120 billion monthly bond purchases as soon as November and could raise interest rates sooner than expected. Out of 18 Fed officials nine are ready to raise interest rates next year.
Fed expects its inflation to remain elevated above its 2% target for four consecutive years. Also, surge in crude oil prices may hurt rupee. However, sharp fall may be prevented on persistent FII inflows.
FDI equity inflows up 112% to $20.42 billion in April-July period:
Foreign direct investments into the country more than doubled to $20.42 billion during the April-July period of the current fiscal, the commerce and industry ministry said on Wednesday. Total Foreign Direct Investment (FDI) inflow rose to $27.37 billion during the first four months of 2021-22. In the year-ago period, the same was at $16.92 billion.
Total FDI comprises equity inflows, reinvested earnings and other capital. "FDI equity inflows grew by 112 per cent in the first four months of 2021-22 ($20.42 billion) compared to the year ago period ($9.61 billion)," the ministry said in a release.
