Closing Bell: Sensex, Nifty end flat; metal, realty down, banks shine

Indian benchmark indices ended flat in the rangebound trading session on September 3. At close, the Sensex was down 4.40 points or 0.01 percent at 82,555.44, and the Nifty was up 1.10 points at 25,279.80.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

The Indian equity markets started the session on a flat note with the benchmark index struggling to continue its positive stature. Led by a narrow range-bound move, the Nifty50 index managed to extend its winning streak but only by a whisker. The index settled the session just one point higher at 25280.

From a technical standpoint, the market levels have seen little alteration, with the Nifty index fluctuating within a narrow range of about 90 points without a clear trend. Additionally, the market breadth suggests a strong tug of war between the Bulls and Bears.

Looking ahead, 25200 is poised to act as a key support for the benchmark, while a solid support zone is expected within the 25100-25000 range. On the higher end of the spectrum, 25350-25400 is anticipated to act as intermediate resistance, followed by the sturdy hurdle of 25500 in the comparable period.

Looking ahead, it is crucial to monitor the recent movement in the high beta index BankNifty, as any potential increase in buying activity following a prolonged consolidation phase could inject the necessary momentum into the markets. Nonetheless, given the apparent fatigue in the benchmark index, it's essential to adopt a pragmatic approach.

Markets ended flat in a lacklustre trading session as investors exercised caution on the back of weak Asian and European cues. Also the markets have been hitting new highs in the recent upsurge and hence investors are a bit sceptical about taking further bullish bets.

Amid mixed global signals and the absence of significant new catalysts, aside from the anticipated Fed rate cut, which is already factored in, the domestic market took a breather. Mild caution emerged due to a recent slowdown in manufacturing activities, which indicates a slowdown in demand. However, predictions of an above-normal monsoon extending through September and accelerated capex by the GoI in the H2FY25 boosted consumption and rural based stocks like FMCG stocks.

Nifty opened on a flat note and consolidated during the day to close marginally in the green up ~1 point. On the daily charts we can observe that the Nifty has been inching higher steadily helped by sector rotation. We shall continue to ride the upmove.

On the upside we expect Nifty to target levels of 25500. On the downside the crucial support base is placed at 25160 – 25120 where the key hourly moving averages are placed. We shall continue to ride the upmove with a trailing stoploss mechanism.

The Bank Nifty has finally showed some spark and is now inching higher towards 51950 - 52000 zone which coincides with the 61.82% Fibonacci retracement level. The support base shifts higher towards 51300 – 51200 from short term perspective.

Indian rupee ended lower at 83.96 per dollar on Tuesday versus Monday's close of 83.92.

Indian benchmark indices ended flat in the rangebound trading session on September 3.

At close, the Sensex was down 4.40 points or 0.01 percent at 82,555.44, and the Nifty was up 1.10 points at 25,279.80. About 1909 shares advanced, 1857 shares declined, and 113 shares unchanged.

Top Nifty gainers were SBI Life Insurance, ICICI Bank, HDFC Life, Shriram Finance and Bajaj Finserv, while losers were ONGC, Infosys, Bajaj Finance, JSW Steel and Adani Ports.

Among sectors, bank and capital goods indices were up 0.5 percent each, while media, power, metal, realty and oil & gas down 0.5-1.5 percent.

The BSE midcap index ended with marginal gains and the smallcap index rose 0.5 percent.

#1 Government approval for Kaynes Semicon Semiconductor plant in Gujarat is positive

#2 The pending government approval remained an area of investor concern

#3 Company had earlier indicated that its OSAT venture could garner incremental potential revenue

#1 Tuning business model to play on strengths, a well-executed plan can bolster competitive position

#2 Planning to double domestic CP market share

#3 Company plans to seed revenue over next 4-5 years; turning selective on exports

#4 Maintain reduce given industry headwinds

The Sensex was up 43.99 points or 0.05 percent at 82,603.83, and the Nifty was up 15.60 points or 0.06 percent at 25,294.30.

QIB – 4.59 times

NII – 95.83 times

Retail – 36.63 times

Employee Reserved – 95.51 times

Overall – 40.31 times

QIB – 24.46 times

NII – 47.30 times

Retail – 7.60 times

Employee Reserved – 31.76 times

Overall – 20.95 times

Shares of staffing company Quess Corp have snapped a four-day losing streak to rise nearly 7 percent and test the 52-week high of Rs 824 on September 3, on the back of higher manpower addition and the likelihood of completion of demerger by this fiscal. Read More

57.2 lakh shares (4.1 percent equity) worth Rs 828.2 crore of Signature Global  change hands at Rs 1,449 per share in the morning trade.

Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas

Indian Rupee depreciated today on positive US Dollar and overnight gains in crude oil prices. However, FII inflows cushioned the downside.

We expect Rupee to trade with a slight negative bias on positive tone in the US Dollar and a correction in the domestic markets. However, fresh FII inflows may support the Rupee.

Traders may take cues from ISM manufacturing PMI data from US today and jobs data later this week. USDINR spot price is expected to trade in a range of Rs 83.75 to Rs 84.20.

Godrej Industries surged seven percent in trade on September 3, as heavy trading volumes caused the counter to record a fresh all-time high. Over 12 lakh shares exchanged hands in trade on the bourses, over 300 percent higher than the one-month daily traded average of four lakh shares. READ MORE

Shares of FIEM Industries - makers of automotive lighting - soared around 5 percent after Kotak Securities initiated coverage on with a 'Buy' call and a price target of Rs 2,140 on the stock, nearly 40 percent higher from previous close. FIEM's product portfolio is versatile across different technologies, Kotak's note said, implying the rise in electric vehicle adoption may not disrupt the auto components maker's business. READ MORE

QIB – 4.06 times

NII – 32.86 times

Retail – 6.49 times

Employee Reserved – 29.47 times

Overall – 11.48 times

QIB – 4.5 times

NII – 68.75 times

Retail – 30.95 times

Employee Reserved – 84.58 times

Overall – 31.64 times

#1 Growth is still difficult in the current environment

#2 BFSI is improving but it is slow & gradual

#3 There are 10-15 actions in play to drive margin

#4 Focus is on costs to drive margins initially followed by pyramid optimisation

#5 Some part of the margin improvement will be invested back

#6 Wage hikes to be reviewed in October

Mining major Vedanta Ltd on September 2 said its board approved third interim dividend of Rs 20 per share for FY25.

"The Board of Directors of Vedanta Limited, at its meeting held today i.e. Monday, September 2, 2024, has considered and approved the third Interim Dividend of Rs 20 per equity share on face value of Re 1 per equity share for the Financial Year 2024-25 amounting to Rs 7,821 crore," said Vedanta in a stock exchange filing.

The record date for the purpose of payment of dividend shall be September 10, 2024.

Prashanth Tapse, Senior VP (Research), Mehta Equities

Despite valuations placed slightly on the higher side and 100% OFS, ECOS India managed to receive a healthy response on the last day of the issue from all types of investors especially from QIB Category who demanded 136x times to the limit.

We believe the investor demand has come considering the company's asset-light model, extensive network across 109 cities and strong relationships with Fortune 500 and BSE 500 companies position it well to capitalize on the growing corporate mobility market and its presence in high-growth sectors like IT, healthcare and e-commerce underscore its potential for continued growth.

Considering market mood and sectorial high-growth factors, we can expect a decent listing gain over and above 20% against the issue price of Rs 334 per share. We had recommended our investors to “SUBSCRIBE WITH RISK” which can generate decent listing gains over and above 20% on the issue price on the back of market optimism.

Post listing, on valuation front, it can move from reasonable valued to stretched valuations which would be reason for profit booking attempts at high levels.

Happiness, dharma, and governance are linked to savings. As Indians we know how to save, but when it comes to investment there is scope for improvement.

90 percent of investments went to assets which were not making real returns. Only 7 percent of allocation went to assets which were making real returns.

The transition should not create wealth for select people. Therefore, it is important to go long term. It is important to have strict rules for traders, so it improves the market infrastructure.

In my career I have never seen this kind of strength in primary markets. Every single IPO we do today, domestic investors are leading the way. Domestic investors are MFs, family offices, etc. Back in COVID 19, the foreign investors were leading in IPOs.

The OFS YTD number is Rs 87,000 crore (selling). A large part of this number is being invested back in equity markets.

QIB – 0.88 times

NII - 26.55 times

Retail – 5.96 times

Employee Reserved - 28.26 times

Overall – 8.96 times

The promoters and promoter group of GACM Technologies intend to increase their stake in the company by participation in preferential allotment of equity shares warrants as announced by the company.

#1 India’s medium-term growth will remain strong

#2 India’s growth will remain strong at 7 percent in FY25

#3 Indian economy will grow at an average of 6.7 percent over FY26-FY27

The board has approved an investment of USD 100 million by the company’s subsidiary, Welspun Pipes Inc., for the upgradation of HFIW (high-frequency induction welding) pipes manufacturing and coating capability in the USA.

This investment will be funded through local debt and internal accruals and will be spread over 18 months.

The company has received a stay order against the suspension order dated May 22, 2024 of store situated at Patidar Complex - Vikhroli, Maharashtra, from the appropriate authority.

Iron ore production in August fell by 10% year-on-year to 3.07 million tons, and sales declined by 11.3% to 3.14 million tons.

#1 Cabinet clears procurement of Rs 26,000 crore order for 240 aero engines of SU-30 MKI aircraft

#2 Order will further bolster company's already strong order backlog of Rs 94,000 crore (FY24 End) to Rs 1.2 lakh crore

#3 Strong order backlog will lead to strong revenue visibility of 3.8x its TTM revenue

#4 Near-term financials may seem a bit volatile

#5 Company has been facing challenges to execute the large Tejas MK I A orders

#6 Believe that stock is attractively valued with multi-year double-digit earnings growth potential

#7 Stock looks attractively valued with robust return ratio profile of +20 percent

Bajaj Housing Finance Ltd has set a price band of Rs 66-70 a share for its initial public offering that will start on September 9.

The anchor bidding will start on September 6 and the issue will close on September 11. Basis of allotment will be on September 12, refunds will be made on September 13 and the stock will list on exchanges on September 16.

Reliance Industries Ltd has unveiled an ambitious roadmap to double its earnings by 2030, driven by expansion in its core oil-to-chemicals business, an aggressive push into digital and retail segments, and a renewed focus on new energy ventures. After evaluating the plans outlined at RIL’s 47th annual general meeting, brokerages have maintained a positive outlook on India’s largest conglomerate, assigning new valuations to each segment. READ MORE

Shares of Hindustan Composites Ltd rose over 9 percent in early trade after the company announced its acquisition of a stake in Swiggy Ltd, an Indian online food ordering and delivery platform. At 10.45 am, shares of Hindustan Composites traded over 6 percent higher at Rs 618. The stock has gained 45 percent in the past six months, outperforming the Nifty 50 index which rose 12 percent during the same period. READ MORE

Shares of major shipyard companies like Mazagon Dock and Cochin Shipyard are higher by up to 6 percent on September 3, in anticipation of an announcement of sizeable naval defence orders. CNBC-Awaaz reported citing sources that the Defence Acquisition Council (DAC) - the apex body on defence-related procurements - is expected to approve deals worth Rs 1.3 lakh crore, including orders for seven naval warships. The order for new warships is expected to be to the tune of Rs 70,000 crore, sources told the TV channel. READ MORE

The company has received demand notice/order issued by Haryana GST Department for the period April 2019 - March 2020 on various grounds. The total demand amount mentioned is Rs 6.76 crore.

As expected with strong subscription response, Premiere Energy's listing was in line with our assumption considering reasonable valuations before listing, well-positioned to capitalize the industry demand in renewable energy and an opportunity to invest in India's second-largest integrated solar cell and module manufacturer.

Post listing considering 120 percent listing gain on valuation front has moved from reasonability valued to stretched valuations which would be reason for profit booking attempts at high levels.

We continue to recommend conservative investors to choose profit booking, while risk takers can continue holding for long term as the sector outlook remains optimistic.

Given the company's strategic alignment with government initiatives promoting domestic solar production, alongside its diversified customer base and recognition as a top performer in module reliability, suggests a promising future. In the long run we believe the market could give a premium multiple towards its leadership position.

#1 Management said that boosting operational margin will be the top priority in near-term

#2 Investments in new areas will take 2-3 years to bear results

#3 Company aims to be more active in M&A and in-licensing going forward

#4 New management plans to pursue profitable growth which will be realised via India, EM & CDMO business

The company has entered into a Share Purchase Agreement with Swiggy to acquire its 1.5 lakh equity shares of Re 1 each by making an investment of Rs 5.175 crore.

Microfinance subsidiary Belstar Microfinance has received approval from the market regulator SEBI to launch its IPO. Belstar plans to raise Rs 1,000 crore via a fresh issue and Rs 300 crore through an offer-for-sale.

Shares of Aadhar Housing Finance rallied over 5 percent to Rs 411 apiece on September 3 after Kotak Securities initiated a 'buy' coverage on Aadhar Housing and set target price at Rs 550 apiece, implying an upside potential of 41 percent from current levels.

The bullish coverage comes as analysts believe that it is one of large diversified player with over 20 percent growth trajectory. Moreover, they said that the company distinguishes itself from most of its affordable housing finance peers with a larger balance sheet, longer history, and superior return on equity (RoE). Read More

Investor Siddhartha Bhaiya sold a 0.6% stake in Vibrant at an average price of Rs 78.02 per share, valued at Rs 1.08 crore.

Shares of Jay Bee Laminations were off to a roaring start on its stock market debut on September 3 after listing it at Rs 277, a premium of 90 percent over the issue price of Rs 146 per share on the NSE SME platform.

The listing gains, however, miss grey market estimates were shares were trading at a premium of 107 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day. Read More

Shares of Vdeal System were off to a robust start on its stock market debut on September 3 after listing at Rs 170, a premium of 51.79 percent over the issue price of Rs 112 per share on the NSE SME platform.

The listing gains top grey market estimates were shares were trading at a premium of 26 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day. Read More

Shares of Premier Energies were off to a roaring start on its stock market debut on September 3 after listing at Rs 991, a massive premium of 120 percent over the IPO issue price of Rs 450 per share.

The listing gains are above the grey market estimates where shares were trading at a premium of 108 percent. The grey market is an unofficial platform for IPO share trading before the official listing. Read More

Baroda BNP Paribas Mutual Fund has bought a 0.98% stake in TCNS at an average price of Rs 576.14 per share, valued at Rs 35.95 crore. However, Morgan Stanley Asia Singapore Pte sold a 0.53% stake at an average price of Rs 574.64 per share, amounting to Rs 19.4 crore.

HDFC Mutual Fund sold a 1.16% stake in Sadbhav at an average price of Rs 33.13 per share, amounting to Rs 6.6 crore.

Deepak Fertilisers, Fineotex Chemical, Ganesha Ecosphere, Goa Carbon, Ion Exchange, The Indian Wood Products Company, Karnataka Bank, Lehar Footwears, Lakshmi Automatic Loom Works, Sakthi Finance, Savera Industries, Tamboli Industries, Tribhovandas Bhimji Zaveri, Vinati Organics, ZF Steering Gear

India is driven by not only by domestic opportunity but also global ones. The question is how do we prepare ourself for this?

To meet the aspirations of 1.4 billion people, we need more capital. Even the investor is seeing India as a global opportunity, in this GIFT City will play an important role in providing capital.

Industrial manufacturing company PTC Industries Ltd has raised Rs 700 crore via a qualified institutional placement, with Motilal Oswal alone buying equity shares worth over Rs 210 crore across its two funds.

HSBC and Societe Generale are among the other big investors in the issue.

PTC Industries issued 5.3 lakh equity shares to QIB investors (qualified institutional bidders) at an issue price of Rs 13,199.7 per share, the company said in a stock exchange filing 3 September. The issue price was at a 5 percent discount to the floor price of Rs 13,894.42. Read More

The Cabinet has approved a Rs 3,300 crore proposal by electronics maker Kaynes to build a semiconductor packaging plant with a capacity to produce 60 lakh chips a day, Union minister Ashwini Vaishnaw said on September 2. Read More

Gensol and Matrix Gas & Renewables emerged as the lowest bidders for the EPC contract to develop a bio-hydrogen project for India’s leading power generation company. Through this project, the companies will convert 25 tons of bio-waste into 1 ton of hydrogen per day. The project is valued at Rs 164 crore.