Closing Bell: Sensex, Nifty at record high; auto, FMCG, pharma rally

Indian benchmark indices ended at record high on July 9 led by buying across the sectors. The Sensex was up 391.26 points or 0.49 percent at 80,351.64, and the Nifty was up 112.70 points or 0.46 percent at 24,433.20.

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.

Both domestic and global factors continue to drive the market momentum. Currently, consumption sectors like FMCG and auto are leading the gains, buoyed by progress in the monsoon and kharif sowing. Investors are eagerly awaiting the first-quarter earnings results, which will guide market direction. The IT sector, with optimistic revenue growth expectations, is expected to positively kickstart the season. Additionally, continuous positive FII inflow contributes to the prevailing positive sentiment.

The Bank Nifty index witnessed a consolidated move and is stuck in a range between 52700-52100. A decisive break on either side will lead to trending moves. The index remains in a buy-on-dip mode, and a break above 52700 will open up further upside towards 53000, where the highest open interest is built up on the call side. However, if the index fails to hold the support of 52100-52000, it can decline further towards the 51700-51500 mark.

Nifty opened on a positive note and continued to inch higher throughout the day to close with gains of 97 points. On the daily charts we can observe that the Nifty closed above 24400 suggesting that there is likely to be more upside over the next few trading sessions.

The next target of the upside is 24610 which is the 161.82% fibonacci retracement level of the previous fall and also the daily upper Bollinger band.

Bank Nifty witnessed a consolidation. It is trading around the lower boundary (52000) of the broad range 52000 – 53500 and hence likely that the Bank Nifty can witness positive momentum towards 53000 from short term perspective.

Divergence was seen in today's trade where Mid and Smallcaps remained rangebound throughout the day and major buying traction was seen in the Index stocks, particularly in the Auto counters which helped Nifty50 to settle the trade at yet another record level of 24,433.20 with gains of 112.65 points. Apart from Auto, Pharma and PSU Banking sectors outperformed while IT was the major laggard.

The Index has breached its previous high convincingly by forming a big green candle and opening the door for further rally towards the 24,520-24,600 zone while 24,340 will be considered as strong immediate support.

Indian rupee ended flat at 83.49 per dollar on Tuesday against Monday's close of 83.50.

Indian benchmark indices ended at record high on July 9 led by buying across the sectors.

The Sensex was up 391.26 points or 0.49 percent at 80,351.64, and the Nifty was up 112.70 points or 0.46 percent at 24,433.20. About 1771 shares advanced, 1664 shares declined, and 83 shares unchanged.

Top gainers on the Nifty included Maruti Suzuki, M&M, ITC, Titan Company and Divis Labs, while losers were ONGC, Tata Consumer, Reliance Industries, Shriram Finance and Bajaj Finance.

Except IT and energy, all the sectoral indices ended in the green with auto, FMCG, Healthcare and Realty up 1-2 percent.

The BSE midcap and smallcap indices ended on a positive note.

The key benchmark indices are expected to maintain a positive trajectory. For the Nifty50, support levels are anticipated near 24,050 and 23,850. In the case of the Sensex, immediate support is situated at 79,100. A decisive break below this level could drive prices down further to 78,500. On the upside, the Nifty50 faces resistance at 24,650 and 24,800, while the Sensex is likely to encounter resistance at 81,000 and subsequently at 81,800.

Most key technical indicators are signaling a positive trend. The Nifty50 and the Sensex are trading above their short-term moving averages, specifically the 10-day and 21-day exponential moving averages (EMAs). Additionally, the MACD indicator is also displaying a positive trajectory.

Undoubtedly, there will be heightened volatility ahead of the budget. Initial market sentiments are bullish, suggesting that buying at lower levels could be beneficial. Any decline near the support levels is likely to present fresh buying opportunities.

Indian Rupee gained by 0.02% today on optimism as Nifty touched fresh all-time highs and fresh FII inflows. A decline in crude oil prices also supported the Rupee. However, a positive US Dollar capped sharp gains. US Dollar gained on weak Euro amid political uncertainty in France.

We expect Rupee to trade with a slight positive bias on positive domestic market sentiments and inflows from foreign investors. However, positive tone in the US Dollar may cap sharp upside. Investors may remain cautious ahead of Fed Chair, Jerome Powell’s testimony to the US Congress. USDINR spot price is expected to trade in a range of Rs 83.20 to Rs 83.70.

Emcure Pharmaceuticals, a leading player in the pharma market, is set for a stellar stock market debut. The IPO has captivated investors, with a remarkable grey market premium (GMP) of Rs 372, translating to a significant 36.9% premium over the issue price. This fervor aligns with the impressive subscription of 67.87 times, showcasing immense investor confidence.

Emcure boasts a strong foundation for its anticipated success. The company possesses a diverse and rapidly growing product portfolio catering to both domestic and international markets. Their proven brand-building capabilities and robust R&D infrastructure further solidify their market position.

However, some potential risks require investor awareness. The pharmaceutical industry faces strict regulations, and Emcure is susceptible to disruptions in its raw material supply chain.

Despite these considerations, the overwhelming investor demand and Emcure's strong fundamentals point toward a positive listing.

Markets@3 | Sensex, Nifty at day's high

The Sensex was up 396.03 points or 0.50 percent at 80,356.41, and the Nifty was up 110.90 points or 0.46 percent at 24,431.40. About 1785 shares advanced, 1643 shares declined, and 80 shares unchanged.

#1 Positively leveraged to digital ad spends
#2 Company is well positioned to benefit from recovery in mobile-ad budgets
#3 Company’s RoE focused M&A strategy should see business turnaround in large DM markets like the US
#4 Expect 20 percent topline CAGR over FY24-27 & 400 bps EBIT margin expansion over the period
#5 Value co at 48x Mar’26 P/E

The company has received a letter of intent from Adani Energy Solutions Limited worth Rs 899.75 crores (inclusive GST) for supply of AL 59 Conductors -New Generations Aluminum Alloy Conductors.

#1 Delhi airport T1’s forecourt canopy recently collapsed post heavy rains
#2 Post the canopy collapse, most of the T1 air traffic has been temporarily moved to T2 & T3
#3 T1 handles domestic traffic only, thus international traffic & related revenue streams remain unaffected
#4 Management is working with concessionaires at T2/T3 to ramp-up services for raise passenger flow

Bansal Wire Industries, a leading manufacturer of steel wire products, is set for a positive listing on the stock exchanges. The IPO garnered a robust subscription of 62.76 times, reflecting strong investor interest. Further fueling anticipation, the current grey market premium (GMP) sits at a significant Rs 76, translating to a premium of nearly 30% above the issue price.

Bansal Wire's strong fundamentals contribute to the optimistic outlook. The company boasts a diverse customer base, catered to through a comprehensive product portfolio. This mix of high-volume and higher-margin products ensures stable and consistent profitability margins. Additionally, the company's financial track record reflects consistent growth in both revenue and profitability, further solidifying its position.

However, investors should consider potential risks. The steel industry is inherently volatile, and Bansal Wire's operations are susceptible to fluctuations in both the supply and cost of raw materials.

Additionally, the highly competitive and fragmented nature of the industry poses challenges for market share expansion. While the IPO valuation appears on the higher end with a P/E ratio of 41.41x, strong financials and investor enthusiasm suggest a positive listing for Bansal Wire.

#1 Reported Q1FY25 consumption growth slower than assumption
#2 Phoenix marketcity Mumbai and Palassio Lucknow saw double-digit growth
#3 Balance was contributed by new malls
#4 Looking at Q4 moving average number, growth has been 23-24 percent YoY last 4 quarters

#1 Such moves will support auto industry growth

#2 Impact of registration fee waiver will be visible in next 2-3 years

Shares of ICICI Lombard General Insurance Company was trading flat to Rs 1,858 apiece on July 10. The firm reported June general insurance data that indicated strong premium collections for the company as against other players.

Data indicated that ICICI Lombard saw 16 percent year-on-year (YoY) growth in June premiums to Rs 2,217 crore from Rs 1,912 crore in the year-ago period. For the April-June period (Q1FY25), the company clocked 20 percent YoY growth to Rs 7,687 crore and increased its market share by up to 62 basis points (bps).

Indian IT/ITeS companies will be hoping that the new fiscal year will be very different from the previous one, which saw the sector take one of the biggest hits since the 2008 financial crisis. So all eyes will be on the country’s largest software exporter Tata Consultancy Services (TCS), which will be kicking off the first-quarter earnings season.

Analysts appear cautiously optimistic on the sector overall, expecting marginal improvement in FY25 on the back of discretionary spending improving and the hype around generative AI. TCS and HCLTech were relatively consistent in delivering growth in FY24, compared with tier-I IT peers like Infosys, Wipro and Tech Mahindra, all of which saw a significant slowdown. (Read more)

Sensex Today | Nifty Pharma index rises 1%; Aurobindo Pharma, Alkem Labs, Cipla among major contributors

Sensex Today | BSE Realty index up 0.5%; Swan Energy, Phoenix Mills, Macrotech Developers

#1 Net equity inflow at Rs 40,252 crore versus Rs 34,670.9 crore, MoM
#2 Small Cap fund inflow at Rs 2,263 cr vs Rs 2,724.7 cr inflow (MoM)
#3 Large Cap fund inflow at Rs 970.5 cr vs Rs 663 cr inflow (MoM)
#4 ETF inflow at Rs 9134 cr vs Rs 10,690 cr inflow (MoM)

Alembic Pharmaceuticals has received final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Bromfenac Ophthalmic Solution, 0.07%.

The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD), Prolensa Ophthalmic Solution, 0.07%, of Bausch & Lomb Incorporated (Bausch).

Bromfenac Ophthalmic Solution 0.07% is a nonsteroidal anti-inflammatory drug (NSAID) indicated for the treatment of postoperative inflammation and reduction of ocular pain in patients who have undergone cataract surgery.

#1 Initiate market perform on Coforge, target Rs 6,080
#2 Initiate underperform on Tata Elxsi, target Rs 6,030
#3 Believe ‘specialist’ engineering services focussed on software & auto have long headroom of growth
#4 ‘Specialist’ engineering services s have partnership with global innovators like Microsoft, Tesla
#5 The engineering services have built strong sales & management capability

Sensex Today | BSE Largecap index hits record high

#1 Go Digit prem up 12.9 percent YoY, April-June market share up 11 bps YoY
#2 Star Health prem up 15.6 percent YoY, April-June market share down 19 bps YoY
#3 New India Assurance prem up 3.8 percent YoY, April-June market share down 149 bps YoY
#4 ICICI Lombard premium up 16 percent YoY, April-June market share up 62 bps YoY

Sensex Today | BSE Midcap index touches fresh all-time high of 47,659.70

Shares of most major tea producers surged on July 9 after weather-related events disrupted production during peak harvesting season in key areas, triggering a spike in prices. Read More

Markets@1 | Sensex gains 320 points, Nifty at fresh high

The Sensex was up 319.15 points or 0.40 percent at 80,279.53, and the Nifty was up 87.00 points or 0.36 percent at 24,407.50. About 1730 shares advanced, 1648 shares declined, and 88 shares unchanged.

Infibeam Avenues board approved to acquire balance 26.00% stake from the existing Shareholder of Infibeam Digital Entertainment Private Limited. Post acquisition, it would become a wholly owned subsidiary company.

Shares of Jupiter Wagons fell over 3 percent on July 9, a day after the company informed that its Fund Raising Committee has approved the launch of a qualified institutional placement (QIP), setting the floor price at Rs 689.47 per equity share.

izmo's US-based subsidiary, izmo Inc., has announced a strategic acquisition of Geronimo Web, a provider of digital marketing programs for automotive OEMs and dealerships.

Geronimo Web is a global leader in its category, and this acquisition makes izmo one of the largest providers of digital web platforms across Europe, USA and South America.

#1 Positively leveraged to digital ad spends
#2 Company is well positioned to benefit from recovery in mobile-ad budgets
#3 Company’s RoE focused M&A strategy should see business turnaround in large DM markets like the US
#4 Expect 20 percent topline CAGR over FY24-27 & 400 bps EBIT margin expansion over the period
#5 Value co at 48x Mar’26 P/E

Broking house recently raised FY25E-FY27E core EPS by 9-13% and upgraded the stock to buy. The stock trades at 16.5x FY25E core earnings.

Elara believes high profit contribution from one-off gRevlimid is already priced into the discounted valuation. It raises Target Price to Rs 7,941 from Rs 7,328 based on 18.5x (from 17.0x) FY26E core earnings plus cash per share. Increased price erosion in the US generics market is the key risk.

Sensex Today | BSE Auto index outpeforms other sectral indices

Stock Market LIVE Updates | GM Breweries Q1 net profit up 25% at Rs 24.9 crore Vs Rs 20 crore, YoY

Ajmera Realty and Infra India approved the re-appointment of Rajnikant S. Ajmera as Chairman and Managing Director w.e.f. 1st August, 2024 to 31st July, 2029 based on the recommendation of nomination and remuneration committee and who has attained the age of 70 years, subject to members approval at the ensuing AGM.

Sensex Today | Nifty hits fresh record high of 24,401.20

AGS Transact Technologies has announced the successful renewal of its commercial with a leading private sector bank in India, for managing their ATMs under its Outsourcing Portfolio.

The revised commercials introduce a hybrid fee model, combining transaction-based and fixed fee components, and are projected to generate about INR 30 crore in annual revenue for the company's Payment Solutions business segment.

Markets@12 | Sensex up 290 points, Nifty around 24400

The Sensex was up 295.43 points or 0.37 percent at 80,255.81, and the Nifty was up 68.60 points or 0.28 percent at 24,389.10.

Fischer Medical Ventures has signed a Memorandum of Understanding with Tech Avant-Garde (TAG), an innovative educational solutions provider, to implement comprehensive health programs in educational institutions across India.

#1 Revenue growth driven by patient volume growth & test volume growth
#2 B2C revenue growth at 18 percent YoY
#3 Company is debt free & having cash reserves of Rs 140 crore as on June 30, 2024

Sensex Today | Nifty PSU Bank index up 1%; IOB, Punjab & Sind Bank, Union Bank of India gain 4-5%

#1 Initiate outperform call on Persistent Systems, target Rs 5,920
#2 Initiate outperform call on KPIT Technologies, target Rs 2,120
#3 ‘Specialist’ engineering services s have partnership with global innovators like Microsoft, Tesla
#4 The engineering services have built strong sales & management capability
#5 Believe ‘specialist’ engineering services focussed on software & auto have long headroom of growth

Shares of Phoenix Mills edged higher on July 9 after Morgan Stanley issued an overweight call with a target price of Rs 3,400 per share. Despite a slower-than-expected consumption growth in Q1FY25, the company has shown promising signs, the brokerage noted.

Rice stocks were on a roll on July 9 as India mulls easing rice export limits before new crop arrives in the market in October. Rice-related stocks LT Foods, KRBL, GRM Overseas, and Kohinoor Foods surged in the range of 9-15 percent in trade, beating 0.1 percent rise in the benchmark Nifty 50 index. According to reports, Centre may review restrictions placed on exports of certain varieties of rice in September, once the ongoing kharif season concludes and the final production figures are available. READ MORE

Stock Market LIVE Updates | Nifty FMCG top sectoral gainer, surges over 2%

Stock Market LIVE Updates | Broader indices outperform benchmark Nifty 50 index

Hindustan Unilever shares are signalling bullish momentum following a long build-up in the derivatives segment and a trend line breakout. "The open interest has shifted in favour of the bulls, with the price aiming to reach higher levels in the upcoming sessions," said Avdhut Bagkar, Technical and Derivative Analyst at Stoxbox. READ MORE

Maruti Suzuki India's shares surged nearly 5 percent to Rs 12,615 per share on July 9, emerging as the top Nifty gainer following Uttar Pradesh (UP) government's announcement of a complete waiver of registration tax on strong hybrid electric cars (HEVs) and plug-in hybrid electric vehicles (PHEVs) with immediate effect. This move benefits Maruti Suzuki's Grand Vitara SUV and Invicto MPV, both featuring strong hybrid technology. READ MORE

Precision Engineering Systems business vertical of Larsen & Toubro has won a prestigious order for part construction of Two Fleet Support Ships (FSS) from M/s Hindustan Shipyard Limited (HSL), with Indian Navy being the end user of the vessels.

Indian Navy had signed a contract with HSL for design and construction of Five FSS for the Indian Navy in August 2023.

Kalpataru Projects International at its meeting held today, has approved the proposal for setting up of fund raising limit by way of issuance of secured / unsecured redeemable Non-Convertible Debentures (NCDs) by the company upto Rs 1600 Crores.

#1 Q1 pre-sales up 22 percent YoY at Rs 611 crore versus Rs 502 crore

#2 Q1 collections down 2 percent YoY at Rs 485 crore versus Rs 495 crore

Sensex Today | Nifty Information Technology index down 0.25%; Coforge, Tech Mahindra, Wipro among major losers

The Reserve Bank of India (RBI) has approved the sale of up to 51 percent stake in Yes Bank, paving the way for a new ownership of the private lender that faced a severe crisis just four years ago, reported Mint.

Sources familiar with the matter who spoke to Mint, revealed that a potential sale could value India's sixth-largest private bank by assets at approximately $10 billion, making it the largest acquisition in the country's banking sector.

Sensex Today | Nifty Media index gains 1%; TV18 Broadcast, Dish TV, Sun TV Network among major gainers

RateGain Travel Technologies has been selected for a multi-year partnership by Malaysia Airlines Berhad, the national flag carrier of Malaysia.

This strategic collaboration will see Malaysia Airlines leveraging RateGain’s advanced AirGain platform to boost its competitive edge through superior pricing intelligence capabilities.

#1 Tariff hike should be good to cover company’s incremental fuel costs
#2 Stock trades at steep discount to Torrent Power, Tata Power & Adani Power
#3 See discount to peers narrowing down to a great extent

FMCG major Godrej Consumer has noted that operating conditions in the first quarter have remained soft, but despite the challenging environment, the India business has clocked high single-digit organic volume and mid-single digit value growth.

Overall, Godrej Consumer's reported growth will be double-digit in volume and high-single digit in value terms, the company said in its business update released on July 8. At a consolidated level, GCPL expects flattish INR sales, double-digit constant currency sales growth and double-digit EBITDA (reported) growth.

Sensex Today | BSE Power index up 1%; Adani Power, NHPC, Adani Energy among major gainers

Shares of Jupiter Wagons fell almost 3 percent in early trade on July 9, a day after the company informed that its Fund Raising Committee has approved the launch of a qualified institutional placement (QIP), setting the floor price at Rs 689.47 per equity share. Read More

Shares of Dr Lal Pathlabs jumped three percent in early trade on July 9 after foreign brokerage UBS bumped up its target price on the pharma player.

UBS hiked its target price on Dr Lal Pathlabs to Rs 3,500 from Rs 2,900, while maintaining the 'Buy' rating, indicating an upside of around 20 percent from previous close.

According to brokerage, the tier-3 market for Dr Lal has been showing strong performance, with scope for further penetration and market expansion. As a result, the Street's concerns about low patient volume growth are likely to fade, UBS said.

Markets@10 | Sensex up 200 pts, Nifty above 24,350

The Sensex was up 219.38 points or 0.27 percent at 80,179.76, and the Nifty was up 51.80 points or 0.21 percent at 24,372.30. About 2025 shares advanced, 1083 shares declined, and 110 shares unchanged.

L&T Semiconductor Technologies, a wholly owned subsidiary of L&T, has entered into a share purchase agreement on July 8, 2024 for acquisition of 100 percent stake in SiliConch Systems.

The said acquisition is expected to be completed by 15th September 2024, subject to customary closing conditions.

The acquisition cost consists of an upfront amount of Rs 133 crore payable at closing, subject to customary closing adjustments; and a deferred amount of Rs 50 crore payable over 4 years, subject to closing adjustments and achievement of certain targets and other conditions.

Bharat Road Network ahs informed that Orissa Steel Expressway Private Limited (OSEPL), one of the subsidiaries, received a letter dated June 21, 2024, from the office of the Regional Director (North Region), Ministry of Corporate Affairs (MCA), regarding an inspection under Section 206(5) of the Companies Act, 2013.

Sensex Today | BSE Auto index up 1%; Maruti Suzuki, Tube Investment, Ashok Leyland among major gainers