Ajit Mishra, VP - Research, Religare Broking:
The F&O expiry day turned out to be a nightmare for bulls as the benchmark shed nearly 3% and settled closer to the day’s low. Feeble global cues led a gap-down start and then it gradually inched lower the day progressed. The selling pressure was widespread wherein IT, Banking and Auto were the top losers. In line with the move, the broader indices too slipped sharply lower and lost 2% each.
The looming uncertainty over the stimulus package in the US combined with the issue of rising COVID cases worldwide has raised concerns over the economic recovery. And, it may deteriorate further if the virus situation results in partial lockdown.
Amid all, the Nifty is down by nearly 6% this week so far and tested the crucial level of 10,800 too however there’s no sign of respite from the banking index. In such a situation, it would be prudent for traders to wait for clarity before jumping into a trade while investors should keep their shopping list handy and continue to accumulate fundamental sound stocks on dips.
Vinod Nair, Head of Research at Geojit Financial Services:
Indian benchmark indices had a gap down opening and kept losing ground as the day wore on, to finally end the day around 2.8% down. Markets tracked weak global cues as the uncertainty witnessed in the last few days gave way to negativity, with broader markets also underperforming. The uncertainty regarding an economic recovery, the unabated rise in virus infections, and today being derivatives expiry day, all contributed to the negativity. With volatility expected to be high, traders are advised to remain cautious.
S Ranganathan, Head of Research at LKP Securities:
Weak Global Cues coupled with worrying data points from the US led to a gap down start today even as the re-emergence of the virus rattled the Euro Zone. Indices here saw deep cuts led by TCS & Infosys as both along with RIL were the ones which led the recovery in the last five months. The broader markets were pounded today much beyond the 3% cut witnessed in the Indices.
Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities:
Rupee ended lower around 73.90 Thursday on majorly overseas outflows from local stocks also a strong dollar keeps the rupee weak amid concerns of resurgence in coronavirus cases, which may lead to re-imposition of strict containment measures in various nations, dashing hopes of gradual economic recovery. Rupee once starts to trade below 74.00 can weaken towards 74.40 odd zones.
Market Close:
The selling continued on the six consecutive day on the Dalal Street on the back of weak global cues.
At close, the Sensex was down 1,114.82 points or 2.96% at 36553.60, and the Nifty was down 326.40 points or 2.93% at 10805.50. About 598 shares have advanced, 2009 shares declined, and 155 shares are unchanged.
M&M, TCS, Bajaj Finance, Tata Motors and IndusInd Bank were among top losers on the Nifty, while HUL was the only gainer.
All the sectoral indices ended in the red with IT and Metal indices shed 4 percent each followed by the Auto, PSU Bank, Infra and Realty indices.
In today's session, the market capital erosion stood at Rs 3.87 lakh crore.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The support level of 10900-10950 has been disrespected during today's trading session. We have also pierced of 10882 which was made on 3rd August 2020. This opens a new target of 10750. Any bounce can be utilised to short the Nifty for this target.
Datamatics Global Services received contract
Datamatics Global Services has been awarded a contract for the delivery of tools for the Static and Fatigue Testing of the control surfaces of the Boeing-Saab T-7A Red Hawk Program.
J Kumar Infra bags order
J Kumar Infraprojects has received Letter of Acceptance from MMRDA for Rs 49,83,15,7581 and from DMRC for Rs 41,17,47,405.
UTI AMC sets IPO price band
UTI Asset Management Company on September 24 fixed at Rs 552-554 per share the price band for its initial public offering (IPO) that is set to open on September 29. The IPO will close on October 1.
The bidding for the anchor book will open and close on September 28.
The public issue will consist of an entire offer for sale of 3,89,87,081 equity shares by State Bank of India (SBI), Life Insurance Corporation of India (LIC), Punjab National Bank, Bank of Baroda and T Rowe Price International.
Tata Elxsi opens GEC
Tata Elxsi announced the opening of a Global Engineering Center (GEC) with Schaeffler Technologies AG & Co. KG, a world leader in providing mechatronics solutions for the Transportation industry.
Tata Elxsi has been selected as the Global engineering services partner by Schaeffler, and the GEC is part of a strategic multi-year engineering services engagement.
The GEC center in Pune will focus on Mechatronics, Digital & embedded technologies with the highest level of talent in line with Schaeffler’s vision for driving “Mobility for Tomorrow”.
June Telecom data
Reliance Jio added 45 lakh subscribers against addition of 36.6 lakh in May. Airtel loses 11.3 lakh subscribers versus loss of 47.4 lakh subscribers in May. Vodafone-Idea loses 48.2 lakh subscribers versus loss of 47.3 lakh subscribers in May, reported CNBC-TV18.
Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services:
Gold extended losses and fell to its lowest level since mid-August in yesterday's session as the dollar advanced, with investors awaiting further response from major central banks as economic uncertainty looms. Meanwhile, US Fed officials and Governor J. Powell shared the same view that monetary policy will need to remain accommodative for quite some time in order to support the economy.
Investors now await US weekly jobless claims data, if it is recorded higher than expectations it could support precious metal prices on lower levels. SPDR holdings, fell 0.87 percent to 1,267.14 tonnes on Wednesday. Broader trend on COMEX could be in the range of USD 1,825- 1,890 and on domestic front prices could hover in the range of Rs 49,000-49,880.
BSE Realty Index shed 2 percent dragged by the Indiabulls Real, Prestige Estate, Sunteck Realty:
Angel Broking IPO subscribed 3.3 times
The initial public offer of Angel Broking has been subscribed 3.3 times on September 24, the final day of bidding, backed by retail investors.
The Rs 600-crore IPO has received bids for 4.6 crore equity shares against an offer size of 1.37 crore equity shares, the data available on exchanges showed.
Abhimanyu Sofat, Head of Research, IIFL Securities:
It is possible that we may see more correction. Scotland and UK have said they are contemplating a lockdown. Fears that more economies may close down is creating more nervousness in the market. The revelations on global bank’s transactions also weighed heavily. All this is collective bothering the market, which is at is on the lookout for reasons to correct. Market had already raced ahead of its valuations.
If we see markets weakening further, it could add more jitters. I see a strong support at 10,800 if market were to weaken from here. Cyclicals will be hammered further. People have stocked up on defensive stocks, and that pack which has stayed resilient, may also feel the heat. Stability in the global markets could be the only savior right now.
Rupee ends lower
Indian rupeeextended the early losses andendednear the day's low level at 73.90per dollar, amid selling seen in the domestic equity market.
It opened 24 paise lower at 73.81 per dollar against previous close of 73.57 and trade in the range of 73.75-73.96.
Market Updates
Benchmark indices extended the losses in the afternoon session and trading near the day's low ahead on the September F&O expiry.
At 14:04 IST, the Sensex was down 832.66 points or 2.21% at 36835.76, and the Nifty was down 240.60 points or 2.16% at 10891.30. About 462 shares have advanced, 1922 shares declined, and 114 shares are unchanged.
Yash Gupta, Equity Research Associate, Angel Broking:
Zydus Cadila has received tentative approval from the USFDA to market Palbociclib Capsules, (US RLD: Ibrance Capsules) in the strengths of 75 mg, 100 mg, and 125 mg. Palbociclib is an anti-cancer medicine that interferes with the growth and spread of cancer cells in the body. It is used in adults to treat hormone receptor (HR)-positive, human epidermal growth factor receptor 2 (HER2)-negative breast cancer that has spread to other parts of the body (metastatic) in combination with an aromatase inhibitor as the first hormonal based therapy in postmenopausal women or in men, or fulvestrant with disease progression following hormonal therapy. The drug will be manufactured at the manufacturing facility at the SEZ, Ahmedabad. This is a positive development for Zydus Cadila.
Emkay Global Financial Services on Britannia Industries
: After a 10 percent correction, Britannia offers an attractive entry opportunity, given strong growth and earnings outlook versus peers. Channel checks point to strong growth momentum - ahead of peers - driven by increased at-home consumption and share gains.
The stock continues to be our preferred pick benefiting from tailwinds and strong execution. Valuations at 40x FY22E EPS appear attractive given 20 percent earnings CAGR over FY20-23E. We reiterate buy with a target of Rs 4,500.
European markets trade lower
Gayatri Projects gets LoA
Gayatri Projects has received Letter of Award (LOA) from Namami Gange & Rural Water Supply Department in the state of Uttar Pradesh for construction of Kachonda Kalan Group of Villages Water Supply Scheme and relevant works including commissioning and operation & Maintenance for 10 years, District- Lalitpur in the State of Uttar Pradesh, in joint venture where the company's share is 80%.
Rupee near day's low
Indian rupee extended the early losses and trading near the day's low level at 73.91 per dollar, amid selling seen in the domestic equity market.
It opened 24 paise lower at 73.81 per dollar against previous close of 73.57.
Nifty Metal Index slipped over 3 percent dragged by the Jindal Steel, NMDC, SAIL, Tata Steel:
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking:
As expected yesterday gold and silver prices corrected sharply. Gold prices corrected by 1.73% and closed at 49,508 levels. Silver prices corrected 4.45% and closed at 58,488 levels.
Sharp recovery in Dollar index cause of correction in Gold and Silver. Spot gold ended lower 1.9 percent to close at $1863.5 per ounce as strengthening of the U.S. Dollar and no signs of further stimulus infusion by the U.S. policy pressurized Gold prices. Spot gold is trading at $1856 per ounce and silver is trading at $ 22.15 per ounce.
U.S. Federal Reserve Vice Chair Richard Clarida said on Wednesday that the U.S. economy remains in a “deep hole" and not going to increase interest rates until inflation hits 2%. The main cause of concern for the US economy is joblessness and weak demand. Worries of reinforcement of lockdown in the Eurozone reflecting the alarming increase in Covid-19 cases dampened hopes of economic recovery limiting the fall in Gold prices.
As for today traders can go for sell in gold at Rs 49,500 levels with the stop loss of Rs 49,950 levels for the target of 48,700 levels. They can also go for sell in Silver at Rs 57,500 levels, with the stop loss of 58,700 levels and for the target of 56,000 levels.
Panacea Biotec completes study of DengiAll
Panacea Biotec has successfully completed the Phase I/II study to evaluate the safety and immunogenicity of its vaccine, DengiAll, a single-dose live-attenuated tetravalent vaccine.
Mazagon Dock sets IPO price band
Public sector undertaking Mazagon Dock Shipbuilders has set a price band of Rs 135-145 per share for its maiden public offer.
The initial public offering of 3,05,99,017 equity shares of the state-owned defence company is an offer for sale by Government of India, of which 3,45,517 equity shares have been reserved for eligible employees. The total offer will constitute 15.17 percent of post issue paid up equity.
Sensex falls 750 pts
Benchmark indices extended the morning losses and trading at the day's low level with Nifty around 10,900.
At 12:03 IST, the Sensex was down 754.24 points or 2.00% at 36914.18, and the Nifty was down 219.40 points or 1.97% at 10912.50. About 411 shares have advanced, 1838 shares declined, and 101 shares are unchanged.
Nifty PSU Bank index shed 3 percent dragged by the Canara Bank, Maharashtra Bank, Indian Bank:
Crude Updates
Oil prices dropped on Thursday, weighed down by concerns that U.S. economic recovery is slowing as the coronavirus outbreak lingers, while a renewed wave of COVID-19 cases in Europe have led to reimposed travel restrictions in several countries.
Buzzing
Hindalco Industries share price was down over 4 percent on September 24 with the metal index shedding over 2 percent.
Global research firm CLSA has maintained a buy on the stock with a target of Rs 225 per share. It is of the view that the correction in the stock is unwarranted given the resilient earnings outlook, according to a CNBC-TV18 report.
The firm believes that attractive product mix and strong scrap spreads will drive Novelis' earnings adding that beverage can demand remains robust across regions.
Rupee extends losses
Indian rupeeextended the early losses and trading lower at 73.87 per dollar, amid selling seen in the domestic equity market.
It opened 24 paise lower at 73.81 per dollar against previous close of 73.57.
Top 10 losers on NSE
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking
: We have been cautious on the market recently and our strategy to remain light on trading positions has played out well so far. Now, the index is near to its immediate support zone of 11,000-10,950. On the flipside, 11,250-11,300 remains an immediate resistance zone. The index could consolidate within this range in next couple sessions and we could also see some swings within the range on the expiry day. Hence, we continue to advise traders to avoid aggressive positions and watch for further developments.
Market Update
: Sensex cracked 638.65 points or 1.7 percent at 37029.77, and the Nifty fell 193.90 points or 1.74 percent at 10938. Bajaj twins along with Tata Steel and Mahindra & Mahindra are the top losers while Bharti Airtel, Reliance Industries and Dr Reddy's Labs are the most active stocks.
Among the sectors, psu bank and the metal index dipped over 3 percent each while the midcap and smallcap indices shed over 2 percent.
Zydus Cadila gets tentative USFDA approval
Zydus Cadila has received tentative approval from the USFDA to market Palbociclib Capsules, in the strengths of 75 mg, 100 mg, and 125 mg. Palbociclib is an anti-cancer medicine that interferes with the growth and spread of cancer cells in the body.
Nifty Auto Index slipped over 2 percent dragged by the Ashok Leyland, M&M, Maruti Suzuki:
Buzzing
Shalby share price rose 2 percent on September 24 as company board meeting is scheduled on September 28 to consider and approve options to reduce the promoter's holding from the current 79.45% to 75.00% which is a mandatory requirement as per SEBI regulation.
Rupee opens
Indian rupee slipped in the early trade on Thursday. It opened 24 paise lower at 73.81 per dollar against previous close of 73.57.
On September 23 the local currency ended flat at 73.57 per dollar against Tuesday's close of 73.58.
Fed policymakers vow to keep interest rates near zero:
Federal Reserve officials on Wednesday doubled down on efforts to convince investors they will keep monetary policy easy for years to allow unemployment to fall, emphasizing that interest rates will stay near zero until inflation gets to 2% and stays there.
Both Fed Vice Chair Richard Clarida and Chicago Fed President Charles Evans were adamant on Wednesday: Rates will not increase until labor markets recover fully from the economic downturn caused by the coronavirus, and prices hit the Fed’s target.
NSE IT Index fell 1.4 percent dragged by the Mphasis, TCS, Tech Mahindra, L&T Infotech:
Ircon International bags order
Ircon International share price added 4 percent on September 24 after company secured works of total 9 Road Over Bridges (ROBs) valuing more than Rs 4OO crore from the Ministry of Railways, Government of India.
All the BSE Sensex stocks are in red:
ICICIdirect:
The dollar is likely to gain further as the Coronavirus rattles sentiment in Europe but uncertainty about this year’s US presidential election means it could be prone to more volatile swings.
The dollar-rupee September contract on the NSE was at 73.52 in the last session. The open interest in the September series declined 9.09% while it increased 6.05% in the next series.
Market Opens
: Indian indices opened weak on September 24 with Nifty below 11,100 on the back of weak global cues.
At 09:17 IST, the Sensex was down 482.90 points or 1.28% at 37185.52, and the Nifty was down 141.90 points or 1.27% at 10990. About 173 shares have advanced, 1000 shares declined, and 44 shares are unchanged.
FDI equity inflows into India down 60% in Q1:
Foreign direct investment (FDI) equity inflows into India contracted by 60 per cent to USD 6.56 billion (Rs 49,820 crore) during April-June 2020, according to data by the Department for Promotion of Industry and Internal Trade (DPIIT).
The overseas inflows during April-June 2019 stood at USD 16.33 billion.
Market at pre-open:
Benchmark indices are trading lower in the pre-opening session on the back of weak global cues.
At 09:02 IST, the Sensex was down 336.76 points or 0.89% at 37331.66, and the Nifty was down 17.00 points or 0.15% at 11114.90.
