Vinod Nair, Head of Research at Geojit Financial Services:
Uncertainties await the market for next week, be it global economic data points or geo-political uncertainties related to Indo-China border tensions. Indian markets have been in sync with its global counterparts and will have an impact. Markets seem to have lost its momentum in the near-term and could be heading into a round of consolidation. Investors advised to be alert and cautious.
Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services:
Nifty index opened negative in line with weak Global cues and during the day it drifted towards key support of 11300-11333 zones. However, in the mid of the day it recovered by around 100 points but failed to hold above 11450 zones and closed the session near to its opening levels as intraday bounce were sold into.
It negated the formation of higher lows of last three trading sessions and formed a Bearish Engulfing pattern on weekly scale which has a Bearish implication if follow up selling happens. Now index is facing multiple hurdles at 11450-11550 zones and till it remains below the same weakness could be seen towards 11200 then 11111 levels.
S Ranganathan, Head of Research at LKP Securities:
While Geopolitical Issues dominated trading today on the back of an already weak global cues in opening trade we did witness bargain hunting amidst the mayhem in select segments. Consumer Durables and Rural based stocks were bought into on the back of a well distributed bountiful monsoon and improved crop sowing this season.
Abhishek Bansal, Founder Chairman, Abans Group:
The rupee is likely to appreciate further, versus the US dollar, towards 72.80 and 72.40 levels, after the RBI’s indication that rupee appreciation could reduce imported inflation in India.
The Indian rupee has appreciated nearly 3% in the last week, over foreign capital, which is flowing in, by way of both institutional and direct investments (FII’s and FPI’s). An appreciation in domestic currency reduces the net import costs.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
We managed to stick above the 11300 level which is a saving grace for the bulls until markets reopen on Monday. If we breach this level on a closing basis, we could enter into a short term bear phase. On the upside, we need to get past 11600 for the markets to continue its upward momentum.
Market Close:
Benchmark indices ended weak on September 4 with Nifty below 11350 amid seling seen in the metal, pharma and banking names.
At close, the Sensex was down 633.76 points or 1.63% at 38357.18, and the Nifty was down 193.60 points or 1.68% at 11333.90. About 1002 shares have advanced, 1674 shares declined, and 177 shares are unchanged.
Axis Bank, Tata Steel, JSW Steel, Adani Ports and SBI were among major losers on the Nifty, while gainers were Maruti Suzuki and Zee Entertainment.
All the sectoral indices ended lower with metal index down 3 percent followed by the pharma, bank, infra and energy. BSE Midcap and Smallcap indices ended 1-1.7 percent lower.
IndusInd Bank allots shares:
The bank has approved the allotment of 1,51,17,477 equity shares of face value of Rs 10 each, at a price of Rs 524 per equity share on preferential basis, for aggregate consideration of Rs 792, 15,57,948.
Maheshwari Logistics recommends bonus share
Maheshwari Logistics has recommended issue of bonus equity share in the ratio of 1:1 of the face value of Rs 10 each.
Abhishek Bansal, Founder Chairman, Abans Group:
The rupee is likely to appreciate further, versus the US dollar, towards 72.80 and 72.40 levels, after the RBI’s indication that rupee appreciation could reduce imported inflation in India.
The Indian rupee has appreciated nearly 3% in the last week, over foreign capital, which is flowing in, by way of both institutional and direct investments (FII’s and FPI’s). An appreciation in domestic currency reduces the net import costs.
Sanjeev Zarbade, VP PCG Research, Kotak Securities:
The BSE-30 Index declined 2% in the current week. The market remained cautious on weaker-than-expected GDP prints and weak GST collections even while PMI and auto sales showed some improvement. Bharti Airtel, IndusInd Bank and Titan Company were the among top gainers, while Bajaj Auto, NTPC and Power Grid were among the major losers in the BSE-30 Index.
On the economy front, real GDP growth of (-)23.9% for 1QFY20 revealed the extent of economic damage from Covid-19. FPIs bought equities worth USD 184 mn over the past five trading sessions while DIIs sold USD 287 mn worth of equities in the same period.
Indo-China border tensions, rising cases of infections, global market correction and valuations are the key risks to the Sensex, in our view. We see risk reward ratio getting unfavourable at these levels. Advice caution at the current juncture.
Rushil Decor's right issue
Fund raising committee of the board of directors of Rushil Decor approved right issue of 49,77,111 equity shares of face value of Rs 10 each, for an aggregate amount not exceeding Rs 2,489 lakh.
The ratio fixed at 1 equity share for every 3 existing shares held by the eligible shareholders as on the record date.
The right issue price fixed at Rs 50 per equity share (Including premium of Rs 40 per equity share over face Value of Rs 10 per equity share.
The issue will open on September 21, 2020 and will close on October 05, 2020.
Mazgaon Dock IPO
Mazgaon Dock Shipbuilders is looking to launch its IPO by October end. Government is likely to sell 10-15% in Mazgaon Dock Shipbuilders via IPO, CNBC-TV18 Sources.
Market Updates
Benchmark indices are trading near the day's low level dragged by the metal, pharma and banking names.
At 14:53 IST, the Sensex was down 681.95 points or 1.75% at 38308.99, and the Nifty was down 206.00 points or 1.79% at 11321.50.About 789 shares have advanced, 1698 shares declined, and 118 shares are unchanged.
Amarjeet Maurya, AVP - Mid Caps, Angel Broking:
For 1QFY21, NR Agarwal Industries’ top-line de-grew by ~44% to Rs 203 crore. Top-line was negatively impacted mainly due COVID-19 lockdown. On the operating front, the company reported margin improvement (up by 462bp YoY to 17.8%), primarily on account of lower raw material costs by 993bp YoY as a percentage of sales and other operating expenses. The reported net profit de-grew by ~34% YoY to Rs16cr due to lower sales and higher depreciation cost.
Rupee ends higher
Indian rupee ended 33 paise higher at 73.14 per dollar, amid selling seen in the domestic equity market.
It opened 11 paise higher at 73.36 per dollar against Thursday's close of 73.47 and remained in the rage of 73.01-73.47.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities:
Crude oil prices traded steady with NYMEX WTI Crude oil prices traded above USD 41 on Friday. MCX Crude oil September futures were trading marginal up to Rs 3049 by noon. Crude oil prices have kept the lower trading range on demand concerns over lower refinery runs and expectations of slower imports from China. Crude oil prices traded weak as refineries begin seasonal maintenance which may lower demand for crude oil. We expect oil prices to trade sideways to up for the day with MCX Crude oil September futures has support at Rs 2990 with resistance at Rs 3090.
Most active stocks on NSE in terms of volumes
Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services:
The swings in USD-INR spot are dollar driven, however, risk-off mood has got investors increase their dollar bets. Later today we have US non-farm payrolls data, and there exists a lot of caution ahead of that. Market is expecting a weaker NFP print, only a positive surprise number will lead to rally in dollar index. Going ahead, 73 will act as an immediate support, with 73.75 being the resistance. Only a consistent trading above 73.75 will open doors for 74 and plus levels.
Tata Motors August auto sales
: Total JLR UK sales grew 13.8 percent at 3,101 units against 2,726 units (YoY). Total Jaguar UK sales was up 1 percent at 1,059 units against 1,049 units (YoY). Total Land Rover UK sales jumped 21.8 percent at 2,042 units against 1,677 units (YoY).
Jyoti Roy, DVP- Equity Strategist, Angel Broking on JK Lakshmi Cement (Target Rs 328):
JK Lakshmi promoted by Singhania group is a predominantly north India cement company with capacity of 13.3mn tonne predominantly based out North India which is the most favored region for the cement industry given better demand supply dynamics. Company had also posted a good set of numbers for Q1FY21 due to favorable regional presence and lower power and fuel costs.
Despite the sharp fall in volumes cement companies were able to maintain their margins due to lower power and fuel costs which is expected to continue due to continued low crude prices.
JK Lakshmi is our top pick in the mid cap cement space given that it is trading at a significant discount compared historical averages as well as peer group.
European markets trade flat:
Jefferies on Adani Ports:
Research house Jefferies has kept buy rating on the stock with a target at Rs 415 per share.
The company has the balance sheet strength to acquire & bid for incremental assets. 31% of its FY20 gross block has come from 6 assets taken over/won in last 7 years.
It’s generated above cost of cap returns on projects acquired on a negotiated basis, while company is well placed to enhance shareholder value from distress asset sales, reported CNBC-TV18.
Nifty Metal Index shed 1.5 percent dragged by the Welspun Corp, JSW Steel, NMDC, SAIL:
Route Mobile to open IPO on Sept 9
Omnichannel cloud communication service (CPaaS) provider Route Mobile has decided to launch its initial public offering on September 9 and also set an issue price band at Rs 345-350 per share.
The company plans to raise Rs 600 crore via public issue which comprises a fresh issue of up to Rs 240 crore and an offer for sale of up to Rs 360 crore by promoters.
Hareesh V Head of Commodity Research at Geojit Financial Services:
A steady US dollar and optimism that the deadly pandemic may be under control soon continue to hit the safe haven appeal of gold. However, hopes of more fiscal stimulus measures and elevating US-China trade tensions would offer firm support to prices. At the same time, traders may be extra cautious today ahead of the key US payroll and unemployment data.
Technical Outlook (London spot): Support of USD 1900 an ounce needs to be cleared for continuation of selling pressure. Else, may see a choppy trading session for the day.
Jyoti Roy , DVP- Equity Strategist, Angel Broking:
India services PMI for the month of August came improved to 41.8 in August from 34.2 in July thus signaling an improvement in the services sector. While activity in the services sector has improved from post pandemic lows, the recovery is still weak as compared to the manufacturing sector which has been posting a smart recovery as signaled by the manufacturing PMI and auto sales numbers.
The manufacturing PMI for August has improved to 52 from 46 in July while two wheeler, PV, LCV and tractor sales also posted strong growth sequentially.
We expect the services sector to improve gradually from here on post unlock 4.0 over the next couple of months due to pent up demand and inventory push prior to the festive season.
Citi on Infosys:
Research house Citi has maintained buy rating with a target at Rs 1,000 per share. Contribution to revenues from Kaleidoscope Innovation acquisition will be minimal.
The impact on earnings will likely be insignificant for FY21/FY22 and continue to see good growth/margin performance by the company. The large deal momentum gives comfort on visibility, reported CNBC-TV18.
Dollar Updates
The dollar steadied against major currencies on Friday as traders awaited key US jobs data that may cast doubt on the strength of the economy recovery from the coronavirus outbreak.
Auto Stocks are trading with a gain of upto 2 percent after Heavy Industry Minister said that the auto industry will get some important concessions.
Rupee extends gains
Indian rupee has extended the early gains and trading higher at 73.30 per dollar, amid selling seen in the domestic equity market.
It opened 11 paise higher at 73.36 per dollar against Thursday's close of 73.47.
Buzzing Stock
Vodafone Idea share price jumped over 4 percent intraday on September 4 ahead of a board meeting planned later during the day. The board will discuss and possibly finalise fund-raising proposals, a few days after the Supreme Court verdict gave telecom companies 10 years to clear their gross revenue (AGR) dues.
Sanjiv Puri at ITC AGM
: Will continue to monitor situation and focus on cost reduction measures. ITC is among the top three companies in India to contribute to the exchequer. Will continue to pursue asset-right model in hotels business agri business segment witnessed appreciable growth. Lockdown impacted hotels, cigarettes and paperboards businesses. Localised lockdown is impacting near-term performance.
L&T bags order
The defence arm of Larsen & Toubro has been awarded a significant contract by the Indian Ministry of Defence for the supply of four regiments of Pinaka Weapon Systems.
Market Updates
Benchmark indices erased some of initial losses but still trading lower with Nifty around 11400 level.
At 10:25 IST, the Sensex was down 471.88 points or 1.21% at 38519.06, and the Nifty was down 132.00 points or 1.15% at 11395.50. About 681 shares have advanced, 1365 shares declined, and 123 shares are unchanged.
Force Motors August auto sales
Total sales of Force Motors in the month of August was up 23% at 1,389 units versus 1,129 units in August 2020.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking:
Next couple of sessions would be crucial for markets to understand the next path of action. As far as levels are concerned, 11600-11650 remains to be a stiff hurdle; whereas on the lower side, 11500-11400-11325 would be seen as cluster of supports. Let see how things pan out and which way market decides to move.
Sectorally, banking space was the major culprit on September 3 as it started sulking right from the word go. On the other hand, IT provided the helping hand yesterday and did not allow bears to dominate. So it was clearly a day of some tug of war between the market participants.
Midcap stocks had a great session and it provided very good opportunities yesterday. Going ahead, one can look to follow such stock specific moves but do not hold positions for higher returns, rather look to book timely profits.
Rupee Opens
Indian rupee opened 11 paise higher at 73.36 per dollar on Friday against Thursday's close of 73.47, amid selling seen in the domestic equity market.
YES Securities on market outlook:
Nifty rebounded post Monday’s swift decline, however snapping two sessions winning streak yesterday Nifty ended on a negative note; marking day’s high at 11,585 Nifty dragged till 11,508. Thursday’s price action took form of NR4 chart pattern (i.e. narrowest high/low trading range when compared with prior three sessions range). Levels of 11,700-11,800 could act as immediate hurdle zone, while any sustenance below 11,500 mark could pull Nifty lower back to 11,400-11,350 zone.
Bank Nifty continued its underperformance, it turned lower after marking day’ high at 24,052. Appearance of bearish candle with close near day’s low suggests immediate hurdle near 24,000-24,300. A decisive break below Friday’s low could open up further downside projection towards 23,000.
Gold Updates
Gold prices rose on Friday, as U.S. Treasury yields fell and a pullback in global equities bolstered demand for the safe-haven metal ahead of the U.S. non-farm payrolls report.
Nifty Bank Index shed over 2 percent dragged by the IDFC First Bank, HDFC Bank, IndusInd Bank:
Crude Updates
Oil prices slipped on Friday, on track for a weekly loss, as investors' focus shifted to lacklustre demand and ample fuel supplies, offsetting support from a weak dollar.
All the stocks on BSE Sensex trades lower:
Market Opens:
Indian indices opened weak on September 4 with Nifty below 11400 following weak global markets.
At 09:18 IST, the Sensex was down 542.32 points or 1.39% at 38448.62, and the Nifty was down 158.70 points or 1.38% at 11368.80. About 185 shares have advanced, 1150 shares declined, and 52 shares are unchanged.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities:
The short term trend of Nifty remains choppy with minor positive bias. There is a possibility of similar range movement with positive bias in the next 1-2 sessions. Immediate resistance to be watched at 11600 and the short term lower support is placed at 11450.
Infosys to acquire Kaleidoscope Innovation
Infosys announced a definitive agreement to acquire Kaleidoscope Innovation, a full-spectrum product design, development and insights firm innovating across medical, consumer and industrial markets, bolstering capabilities in the design of smart products. This acquisition demonstrates Infosys’ commitment to innovate for its clients, and make a meaningful impact on human lives by combining cutting-edge technologies and experiences to revolutionize patient care, treatment, diagnostics and consumer health across the world.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services:
Going ahead, the market may look forward for more positive signs of economic recovery and would track the development around US stimulus announcement. Investors will also keep a close watch on India-China border tensions and global markets for cues.
Technically, Nifty is finding hurdle at higher zones but at the same time decline is being bought into. Nifty needs to hold above 11550 which could again give an upper hand to bulls to drive the move towards 11750-11800 zones, while the support stands near 11400-11300.
Results Today:
National Aluminium Company, Future Retail, Goodyear India, Jubilant Life Sciences, NLC India, Repco Home Finance, RattanIndia Infrastructure, RattanIndia Power, Seamec, Simbhaoli Sugars