Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets witnessed a highly volatile trading session, which was marked by weak global cues but benchmark Nifty once again took support near the 10 days SMA or 17600 and reversed sharply. After yesterday's sharp intraday fall, the index has formed an inside candle pattern which indicates indecisiveness between bulls and bears.
In the run-up to monthly F&O expiry, the market may continue with the narrow range activity. For day traders, 17800 -17850 would be the key resistance level, while 17625-17590 could act as strong support.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities
Nifty continues to remain in a medium-term uptrend for targets of 18500 and above; expect positive activity to continue for the initial part of the October series.
Immediate support is seen at 17400 with buying on dips advisable. Select stocks in the Auto and BFSI space are showing positive buildup, while Metal stocks are expected to consolidate before any positive reversal.
Vinod Nair, Head of Research at Geojit Financial Services:
Domestic market started on a very negative trend due to global sell-off on Tuesday & high crude prices. Spiking US treasury yields and slowing economy were impacting growth stocks. During the day, European & Asian markets recovered and crude prices stabilized. Indian growth-oriented sectors like Energy, Metals and Pharma also recovered strongly but selling continued on other sectors like private sector banks & consumption.
Sachin Gupta, AVP, Research at Choice Broking:
After a negative opening, the benchmark index recovered the maximum loss and settled above 17700 levels with a marginal loss of 0.2%, while Bank Nifty ended at 37743 levels with a loss of 202 points.
Technically, the index is hovering above the Middle Bollinger Band formation and also moving above 50-SMA, which indicates a bullish presence in the counter. Moreover, the index witnessed a positive crossover in Stochastic. At present, the Nifty has immediate support at 17500 while resistance lies at 17900/17950 levels.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some positive movements after able to sustain the Nifty 50 Index level of 17600. It is going to be crucial for the short-term market scenario to sustain above the 17550-17600 support zone.
If the market is able to sustain the level of 17550-17600, market can witness higher levels of 18000. The technical indicator suggests, a volatile movement in the market in a small range between 17600-18000.
S Ranganathan, Head of Research at LKP securities:
Markets were volatile for the second consecutive day with the street wary of inflation on the back of supply side disruptions and higher commodity prices. As China pulls back on the back of power shortages, export opportunities are seen opening up for several Indian companies with the PLI schemes providing the catalyst.
PSE index rose for the second consecutive day with power stocks hogging the limelight. As the gap between growth and value stocks widen, we are witnessing sector rotation in several pockets. Metals & PSU banks helped stage a recovery in afternoon trade.
Market Close:
Benchmark indices ended lower for the second consecutive session on September 29 amid volatility.
At close, the Sensex was down 254.33 points or 0.43% at 59,413.27, and the Nifty was down 37.30 points or 0.21% at 17,711.30. About 1830 shares have advanced, 1371 shares declined, and 151 shares are unchanged.
HDFC, Kotak Mahindra Bank, Asian Paints, UltraTech Cement and HUL were among the major losers on the Nifty. Coal India, NTPC, Power Grid Corporation, Sun Pharma and IOC were among the gainers.
On the sectoral front, the power, metal, pharma and realty indices added 1-3.5 percent, while selling was seen in the auto, bank, capital goods, FMCG names. The BSE midcap and smallcap indices ended in the green.
Mahesh Kumar, EVP & Head Capital & Commodities Market at Abans Group:
WTI Crude oil prices have retraced from yesterday's high of $76.67 and are now hanging around $74.66. Crude oil prices have risen dramatically from a low of $61.74 last month, owing to increased demand in the United States and Europe, as well as a tight supply situation in the Gulf of Mexico following a series of hurricanes.
Crude oil prices are expected to remain stable as long as they remain above important support levels of $71.78 per barrel and $70.55 per barrel on the 20-day and 50-day exponential moving averages, respectively. In the meanwhile, $76.56 and $77.83 are considered as imminent resistance levels.
Piramal acquires DHFL by paying creditors Rs 38,000 crore
Piramal Enterprises on September 29 announced that it has acquired Dewan Housing Finance Corporation (DHFL) by paying the latter's creditors Rs 38,000 crore.
This includes Rs 34,250 crore to be paid by Piramal Capital and Housing Finance (PCHFL) in cash and non-convertible debentures, and Rs 3,800 crore from the cash balance of DHFL.
Piramal Enterprises was quoting at Rs 2,643.35, down Rs 36.85, or 1.37 percent on the BSE.
Nifty Metal index added over 2 percent supported by the Coal India, NALCO, Jindal Steel
Market at 3 PM
Benchmark indices were trading with marginal losses with Nifty above 17700.
The Sensex was down 198.23 points or 0.33% at 59469.37, and the Nifty was down 25.40 points or 0.14% at 17723.20. About 1806 shares have advanced, 1222 shares declined, and 115 shares are unchanged.
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Around 200 stocks touched their 52 week highs during the day on the BSE including Coal India, Titan, Godrej Properties, Sun Pharma, NTPC, Power Grid.
Aditya Birla Sun Life AMC IPO subscribed 34% on first day of bidding
The public issue of Aditya Birla Sun Life AMC, ranked as the largest non-bank affiliated AMC in India by QAAUM, is subscribed 34 percent on September 29, the first day of bidding. The bidding for the issue will continue for three days till October 1.
Retail investors have put in bids for 70 percent of their reserved portion and shareholders of Aditya Birla Capital have bought 21 percent shares of total portion reserved for them. Of the issue size, 19.44 lakh shares are reserved for shareholders. Click to Read More
Blue Star to invest Rs 550 crore on new manufacturing plant at Sri City, Andhra Pradesh
: Air conditioning and commercial refrigeration major Blue Star Ltd on Wednesday said the company would invest around Rs 550 crore over the next few years for setting up a greenfield manufacturing unit at Sri City, in Andhra Pradesh.
Blue Star Climatech, a newly formed wholly-owned subsidiary, has commenced construction of the new plant, which will be "highly automated" and will ensure that the products manufactured are globally competitive, said a company statement. The construction of the first phase of 30,000 sq meters will be completed by July 2022. The stock was trading at Rs 905.30, up Rs 9.75, or 1.09 percent. It has touched an intraday high of Rs 938.00 and an intraday low of Rs 899.85.
Mohit Ralhan, Managing Partner & Chief Investment Officer of TIW Private Equity
: The market is facing downward pressure given the negative global cues. We had turned cautious after the indices moved up quite a bit recently with Sensex touching a high of 60,000. While the domestic story of economic recovery and reducing risks on the COVID-19 front remains intact, the unfolding debt crisis at China Evergrande Group and impending start of tapering by US Fed, have resulted in unfavourable risk reward scenario. Also, the valuations of Indian stocks have increased significantly with the P/E ratio of Nifty 50 Index crossing 27x, which is another critical factor to remain cautious in the markets right now.
European markets are trading in the green with FTSE, CAC and DAX up half a percent each
Market update at 2 PM
: Sensex is down 210.14 points or 0.35% at 59457.46, and the Nifty shed 29.90 points or 0.17% at 17718.70. Coal India, Sun Pharma, NTPC and Power Grid are the top gainers while UltraTech Cement, HDFC and Asian Paints are the top drags.
Among the sectors, power and metal indices added 2-3 percent each while banks and auto stocks are under pressure.
BSE Healthcare index added over 1 percent led by the Panacea Biotec, Neuland Laboratories, SMS Pharma:
Dollar at 2021 highs as traders brace for Fed taper
The dollar stood at its strongest levels of the year on Wednesday, after rising along with U.S. yields on investor concerns that the Federal Reserve will start to withdraw policy support just as global growth slows.
Gaurav Garg, Head of Research, CapitalVia Global Research:
Indian equity benchmarks continue to trade in red in the afternoon session, with both Sensex and Nifty trading in red terrain. The BSE Sensex is currently trading around 59,300. There were 9 stocks advancing against 21 stocks declining on the index. The CNX Nifty is currently trading around the level of 17660. There were 21 stocks advancing against 29 stocks declining on the Nifty index.
Domestic sentiments impacted by negative cues from other Asian markets. Among the sectors, Metal, Realty and Power indices up 1-2%, while selling is seen in the IT, Auto and Banking stocks. BSE mid-cap and small-cap indices are trading marginally higher.
Traders were cautious, as credit rating agency Crisil’s states that indebtedness will remain high this fiscal at 33%. Our research suggests that if the market sustains the level of 59000, we can witness higher levels of 59500-59600.
Gallantt Ispat approves investment up to Rs 135 crore in the equity capital of subsidiary
Gallantt Ispat board on the recommendation of the Audit Committee, has approved an investment up to Rs 135 crore in the equity capital of Gallantt Industry Private Limited, wholly owned subsidiary of the company, inclusive of earlier sanctioned investment limits of Rs 70 crore.
The board therefore, has approved a fresh investment of Rs 65 crore in the equity capital of GIPL in trenches under different modes of subscribing, issuing and allotment of shares by GIPL and the mode of investment shall be decided as per the convenience of both the Companies.
Gallantt Ispat was quoting at Rs 57, up Rs 3.60, or 6.74 percent on the BSE.
Market at 1 PM
Benchmark indices were trading lower with Nifty below 17700 amid selling seen in the auto, bank, IT and FMCG names.
The Sensex was down 366.87 points or 0.61% at 59300.73, and the Nifty was down 77 points or 0.43% at 17671.60. About 1703 shares have advanced, 1239 shares declined, and 140 shares are unchanged.
SVP Global Ventures to foray into technical textiles
SVP Global Ventures is foraying into technical textiles. The company is investing around Rs 100 crore in setting up a 4,375 MT per annum green-field facility for technical textiles at Jhalawar, Rajasthan.
SVP Global Ventures was quoting at Rs 124.95, up Rs 1.45, or 1.17 percent on the BSE.
BSE Realty index added over 2 percent led by the Godrej Properties, Oberoi Realty, Mahindra Life:
Lupin launches Droxidopa capsules in the United States
Lupin announced the launch of Droxidopa Capsules, 100 mg, 200 mg, and 300 mg, having received an approval from the United States Food and Drug Administration (USFDA). The product is manufactured at Lupin's facility in Nagpur, India.
Lupin was quoting at Rs 954.45, up Rs 5.55, or 0.58 percent on the BSE.
Veeda Clinical Research files for IPO to raise Rs 831 crore
Clinical research organisation Veeda Clinical Research Limited has filed its draft red herring prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (Sebi) to raise funds from the primary markets.
The issue will consist of an issuance of fresh equity shares worth up to Rs 331.60 crore and an offer for sale (OFS) of Rs 500 crore by promoters and existing shareholders.
Brickwork Ratings India revises rating of Elecon Engineering's bank credit facilities
Market at 12 PM
Benchmark indices continued to trade lower with Nifty around 17650.
The Sensex was down 406.59 points or 0.68% at 59261.01, and the Nifty was down 88.80 points or 0.50% at 17659.80. About 1676 shares have advanced, 1231 shares declined, and 135 shares are unchanged.
Aditya Birla Sun Life AMC IPO subscribed 20%
The public issue of Aditya Birla Sun Life AMC, ranked as the largest non-bank affiliated AMC in India by QAAUM, is subscribed 20 percent on September 29, the first day of bidding. The bidding for the issue will continue for three days till October 1.
The offer has received bids for 54.99 lakh equity shares against IPO size of over 2.77 crore equity shares, the subscription data showed. The offer size has been reduced to 2.77 crore shares from 3.88 crore shares after the company raised Rs 789 crore from anchor investors on September 28.
Infosys and SAP collaborate to drive business innovation
Infosys today announced the launch of the Leads and Proposals Solution as part of SAP’s industry cloud portfolio for the professional services industry. This cloud-native business-to-business (B2B) solution, part of Infosys Cobalt, leverages predictive analytics, the SAP Analytics Cloud solution, and the SAP Conversational AI service, integrated with SAP S/4HANA Cloud to drive innovation in the professional services sector.
Infosys was quoting at Rs 1,678.80, down Rs 8.70, or 0.52 percent on the BSE.
BSE Oil & Gas index rose 1 percent led by the IOC, ONGC, HPCL
Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors
As the US yields rise, Dollar index rises and so do the oil prices. Rupee is expected to remain in the range of 73.90 to 74.40.
Quarter end selling from IT companies and MSCI rebalancing should come as RBI endures to cap the volatility in the currency.
Motilal Oswal on Varun Beverages
The company is expected to deliver strong volume growth across all the three product segments, with an increase in consumption patterns to pre-COVID levels. We expect strong demand traction over the next few years due to strong distribution network, rising penetration in the newly acquired region (south and west India), diversifying product portfolio, and growing refrigerator penetration in rural/and semi-rural areas per household and higher power availability hours.
We expect a revenue/EBITDA/PAT CAGR of 20%/25%/56% over CY20-23E. We value the stock at 40x (in line with its three-year average P/E) CY23E EPS. Our target of Rs 1,150 implies a 27% upside. We maintain our buy rating on the stock.
Market update at 11 AM
Sensex is down 458.12 points or 0.77% at 59209.48, and the Nifty shed 104.10 points or 0.59% at 17644.50. NTPC, Poweer Grid and State Bank of India are the top gainers while Tech Mahindra, ICICI Bank and Kotak Mahindra Bank dragged the most.
Among the sectors, the Power index jumped over 3 percent while bank, IT and the auto indices are under pressure.
BLS International bags contract with Embassy of Italy:
BLS International has won the contract with Embassy of Italy in Russia for visa processing for a period of 5 years in partnership. Under the contract, the company is expected to process approximately 1,40,000 applications every year with 20 centres across Russia, company said in its press release.
BLS International Services was quoting at Rs 261.40, up Rs 7.60, or 2.99 percent on the BSE.
Aditya Birla Sun Life AMC IPO subscribed 11%:
The public issue of Aditya Birla Sun Life AMC is subscribed 11 percent on September 29, the first day of bidding. The bidding for the issue will continue for three days till October 1.
The offer has received bids for 30.84 lakh equity shares against IPO size of over 2.77 crore equity shares, the subscription data showed.
Retail investors have put in bids for 23 percent of their reserved portion and shareholders of Aditya Birla Capital have bought 6 percent shares of total portion reserved for them. Of the issue size, 19.44 lakh shares are reserved for shareholders.
Godrej Properties adds a large new redevelopment project in Mumbai
Godrej Properties has entered into an agreement to redevelop a land parcel in the upscale neighbourhood of Wadala, Mumbai. Spread across 7.5 acres, this project will offer approximately 1.6 million square feet of saleable area comprising primarily of residential apartments of various configurations, as per the company's press release.
Godrej Properties was quoting at Rs 2,276.50, up Rs 42.90, or 1.92 percent on the BSE.
BSE Power index rose 1 percent supported by the CESC, Tata Power, NTPC
Rupee Opens:
Indian rupee opened 14 paise lower at 74.16 per dollar on Wednesday against Tuesday’s close of 74.04.
Market at 10 AM
Benchmark indices erased some of the early losses but still trading lower with Nifty below 17,700.
The Sensex was down 306.28 points or 0.51% at 59361.32, and the Nifty was down 77.80 points or 0.44% at 17670.80. About 1501 shares have advanced, 1119 shares declined, and 135 shares are unchanged.
SEBI board clears gold exchange framework
The board of the markets regulator Securities and Exchange Board of India (SEBI) took a number of key decisions including detailing a framework for spot gold trading, tightening norms for related party transactions, easing rules for issuance of shares with superior voting rights in tech companies and delisting norms. Also Read
Nifty Bank index fell 1 percent dragged by the IndusInd Bank, ICICI Bank, IDFC First Bank
Atul Auto starts commercial production at Bhayla plant
The commercial production at Bhayla (Ta. Bavla, Dist. Ahmedabad) plant of Atul Auto for manufacturing three wheeler automobiles has been commenced on September 27, 2021, company said in its release.
Atul Auto was quoting at Rs 222.25, up Rs 2.95, or 1.35 percent on the BSE.
BSE Auto index slipped 1 percent dragged by the Motherson Sumi, Ashok Leyland, TVS Motor
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
The surge in the benchmark US 10-year yield to 1.546 percent spooked equity markets in the US with cuts of above 2 percent in S&P 500 and Nasdaq. The rise in US bond yields triggering correction in equity markets has been a known threat for some time now. But what triggered this sudden spike in bond yield was the Fed chief Powell's statement that inflation may persist for a much longer time. The rise in the dollar index to 93.7 levels indicate profit booking in stocks and safe-haven buying into the dollar.
It is too early to conclude that this is a trend reversal for markets. Perhaps the ' buy on dips' strategy may again work out. But at the present elevated valuations, the risk is high. Investors may watch for consolidation in markets
Gainers and losers on the BSE Sensex:
Market Opens:
Indian indices opened on negative note on September 29 with Nifty below 17,700 amid weak global cues.
At 09:16 IST, the Sensex was down 449.72 points or 0.75% at 59,217.88, and the Nifty was down 121.80 points or 0.69% at 17,626.80. About 647 shares have advanced, 1069 shares declined, and 93 shares are unchanged.
ICICI Direct
Indian markets are likely to open on a negative note on the back of mixed global cues as concerns about rising crude oil prices and debt crisis in China’s giant Evergrande are hurting investors’ sentiments. US markets ended sharply lower on the back of losses in technology stocks amid a swift rise in US treasury yields.
Market at pre-open:
Benchmark indices are trading lower in the pre-opening session amid weak global cues.
At 09:02 IST, the Sensex was down 341.92 points or 0.57% at 59325.68, and the Nifty was down 137.10 points or 0.77% at 17611.50.
