Closing Bell: Sensex up 376 points, Nifty around 24,950; FMCG, banks gain, oil & gas drags

Indian indices snapped three days fall and ended higher with Nifty above 24,900 on September 9. At close, the Sensex was up 375.61 points or 0.46 percent at 81,559.54, and the Nifty was up 84.20 points or 0.34 percent at 24,936.40.

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.

Today, the benchmark indices witnessed narrow range activity, the Nifty ends 84 points higher while the Sensex was up by 375 points. Among Sectors, FMCG index outperformed rallied 2 percent whereas Energy, Oil and Gas indices shed over 1 percent. Technically, after a weak open market took the support near 20-day SMA and reversed. Post reversal it held positive momentum throughout the day.

A small bullish candle on daily charts and reversal formation on intraday charts suggesting pullback formation is likely to continue in the near future.

We are of the view that, as long as market is trading above 20-day SMA (Simple Moving Average) or 24800/81000 the pullback formation is likely to continue. On the higher side, it could move up till 25000/81800 and 25125/82200. On the other side, below 24800/81000 uptrend would be vulnerable and traders may prefer to exit out from the trading long positions.

Despite a negative opening amidst weak global cues, the domestic market exhibited some recovery from last week’s steep fall. The market is currently attempting to gain stability between potential rate cuts and recession fears in the US.

The current trend in the US job data suggests that the anticipated 25 bps rate cut may not be sufficient. Moreover, the upcoming data on US inflation and jobless claims will be decisive in assessing the market trend.

Nifty opened on a flat note and after the initial bout of volatility it stabilized and managed to close in the green up ~80 points. On the daily charts we can observe that the Nifty has tested and held on to the support zone 24850 – 24800 which coincided with the 20-day moving average and the 38.2% Fibonacci retracement level. Today’s low 24750 shall be the stoploss for the long positions and a breach below it shall lead to a trend reversal from short term perspective. The immediate hurdle on the upside is placed at 25000 - 25100.

The Bank Nifty witnessed a sharp recovery from the intraday lows and recovered most of the losses from the previous session. The V shape recovery suggests buying interest at lower levels. In the case of Bank Nifty the support comes in at 50500 – 50350 while resistance is placed at 51375 – 51450.

Bears tightened their grip as the market started the week on a tepid note. A steep fall in the Mid and Smallcap segments pulled the Index much lower but Banking and FMCG counters came to the rescue and helped Nifty50 settle the trade at 24,936.40 with gains of 84.25 points.

The interest of market participants was more towards the Largecaps which resulted in an underperformance by the Mid (0.26%) and Smallcap (0.93%) space. On the daily chart, the Index has made a green candle at 38.2% retracement (23,893.70-25,333.65) coupled with 21DMA support which suggests a potential trend continuation (bullish). A zone of 24,730-24,780 will be considered a strong support area while on the higher side, it needs to clear the hurdle of 25,000-25,100 to resume an uptrend.

Indian rupee ended flat at 83.95 per dollar on Monday versus Friday's close of 83.94.

Indian indices snapped three days fall and ended higher with Nifty around 24,950 on September 9.

At close, the Sensex was up 375.61 points or 0.46 percent at 81,559.54, and the Nifty was up 84.20 points or 0.34 percent at 24,936.40. About 1576 shares advanced, 2300 shares declined, and 130 shares unchanged.

Top Nifty gainers were HUL, Shriram Finance, ICICI Bank, ITC and Britannia Industries, while losers were ONGC, Tech Mahindra, Hindalco Industries, NTPC and BPCL.

Among sectors, FMCG and Bank indices up 1 percent each, while Capital Goods, Information Technology, Metal, Telecom, Media, Oil & Gas, Power, Realty down 0.3-1 percent.

The BSE midcap index was down 0.3 percent and smallcap index shed 0.6 percent.

QIB – 0.00 times

NII – 0.35 times

Retail – 1.17 times

Overall – 0.66 times

QIB – 0.48 times

NII – 2.99 times

Retail – 1.20 times

Employee Reserved – 0.25 times

Reservation Portion (shareholder) – 1.92

Overall – 1.39 times

#1 Revenue target by FY27 is USD 2 billion & management is optimistic about achieving this target

#2 There is a challenging business environment

#3 Company implementing strict cost management strategies

#4 Focusing on high-demand areas like data, cloud, digital engineering

#5 Company aims to diversify geographically to increase its European revenue share from 7-8 percent to 12 percent

The Ministry of Heavy Industries has approved the registration of two-wheeler models—Nexus, Primus, Magnus, and Zeal of Greaves Electric Mobility Private Limited making it eligible for the Government of India’s demand incentives under the EMPS Scheme.

Jupiter Wagons share price fell for a third straight session as the stock plunged over 7 percent on September 9. The stock has been falling on heavy volumes, and profit-booking. So far in the day, a total of 17 lakh shares of the company have changed hands on BSE and NSE combined, compared to the one-month average trading volume of 9 lakh shares.

Expectedly, after scaling to an all-time high of 748 on the daily charts, a negative RSI divergence has led to a much-needed fall in the Jupiter Wagons stock price over the last few weeks, according to A R Ramachandran of Tips2trades.

"A strong resistance is now seen at 547. A daily close today below supports of 528 and 511 could lead to 494 and even 470 in the near term," he said.

Shares of Jubilant Pharmova skyrocketed close to 9 percent and scaled its record high Rs 1,038 on September 9, driven by a surge in trading volumes in the counter. As much as 73.43 lakh shares of the company changed hands on the exchanges so far, significantly higher than the one-month daily traded average of 42.9 lakh shares.

The volume was also nine times higher as compared to average volume at this time of the day.

Shares of Gujarat Fluorochemicals surged 4 percent and hit a record high of Rs 3,980 on September 9 driven by a surge in trading volumes in the counter. As much as 15 lakh shares of the company changed hands on the exchanges so far, significantly higher than the one-month daily traded average of four lakh shares.

QIB – 0.02 times

NII – 2.29 times

Retail – 0.97 times

Employee Reserved – 0.11 times

Reservation Portion (shareholder) – 1.49

Overall – 1 times

QIB – 0.00 times

NII – 0.28 times

Retail – 0.97 times

Overall – 0.55 times

The Sensex was up 228.31 points or 0.28 percent at 81,412.24, and the Nifty was up 44.60 points or 0.18 percent at 24,896.80.

#1 Otsuka (Innovator) files notice of appeal against district court’s verdict on generic Jynarque

#2 There is a probability that Lupin may still prevail in the higher court

#3 Company’s generic launch in April 2025 (if it wants to go ahead) may now be an ‘at risk’ launch

#4 There may be delay around injunctions/restraining orders

#5 Company may delay the launch as it may not realise full potential of sole FTF with an “at risk” launch

#6 Jynarque contributes 30 percent of our FY26 EPS & there is a possibility of downside in this number

The board of directors of the company at their meeting held on September 9, 2024 approved sub-divide or split the shares of the company from the face value of Rs 10 each to Rs 2 each (after sub-division of shares) subject to the approval of members in the ensuing AGM of the company.

#1 Synergies from merger to keep aiding growth

#2 NIM compression transitory; accomplishing new segments further is the key

#3 Asset quality to remain stable; credit costs guidance maintained

#4 Management expects the C/I ratio to improve and remain in the guided range of 26- 27 percent

#1 Volumes at Dahej terminal are down 30 percent since May peak, as gas demand from power cooled off

#2 Earnings momentum is negative

#4 Capital allocation concerns on PDH-PP + East coast terminal projects are a medium-term drag

#5 Valuations are unfavorable after 90 percent rally since November

Tata Power-led Odisha Discoms have awarded contracts worth Rs 11,481 crore to local contractors and suppliers, an official said.

The joint ventures between Tata Power and the Odisha government, placed orders worth Rs 8,690 crore with local MSMEs and Rs 2,791 crore to non-MSMEs by the Discoms over the past three years since taking over the state's power distribution operations. Read More

#1 Company’s GRM outperformance versus benchmark margin to widen further as crude discounts rise

#2 Stock is pricing in mid-cycle refining margins; current margins are below that

#3 Refining cash flows remain key to company’s growth plans

#4 Global refining weakness does receive investor focus

#5 USD 1/bbl lower refinery margins affect company’s cash flow negatively by USD 0.4 billion

QIB – 0.00 times

NII – 0.22 times

Retail – 0.84 times

Overall – 0.47 times

QIB – 0.02 times

NII – 1.85 times

Retail – 0.81 times

Employee Reserved – 0.18 times

Reservation Portion (shareholder) – 1.17

Overall – 0.82 times

Vedanta Resources PLC, the holding company of Vedanta Limited, has begun discussions with lenders to raise up $1 billion through foreign currency bonds, sources aware of the development told Moneycontrol requesting anonymity.

According to the sources cited above, billionaire Anil Agarwal led metals and mining conglomerate plans to refinance up to $600 million of bonds maturing in 2026 and also raise fresh funds towards equity infusion in some of the group’s existing and new businesses. Read More

Megasoft received intimation from M/s. Ramanagaram Enterprises, promoter of the company, intimating sale of 1,00,000 equity shares of the Company, in the open market.

The company announced the completion of good manufacturing practices (GMP) inspection by the Pharmaceutical and Medical Devices Agency Japan for the company's manufacturing facility unit at Surat. The result declared the said facility as GMP compliant.

Capri Global Capital, Gujarat State Fertlisers, Gujarat Gas, Harsha Engineers, Lumax industries, Lumax Auto, Nitin Spinners, Strides Pharma Sciences, Star House Finance, Waree Renewable Technologies, Premier Polyfilm, Luharuka Media & Infra, Lambodhara Textiles, Jost's Engineering, Jindal Worldwide, and Hisar Metal Industries.

Last week, Nifty ended its four-week winning streak with a reversal. The previous support level of 25,100 has now turned into resistance. As long as this level isn't surpassed, we should be wary of potential weakness in the Nifty, with a drop to 24,500 also possible. Any rallies should be approached with caution until Nifty can break above 25,100.

Similarly, Bank Nifty now faces strong resistance at 51,250. A decline to 50,000, and possibly even to 49,700, cannot be ruled out. Given the expected market volatility in the coming days, investors should be cautious when selecting stocks and maintain light positions to better manage the current fluctuations.

QIB – 0.01 times

NII - 0.99 times

Retail – 0.54 times

Employee Reserved - 0.13 times

Reservation Portion (shareholder) - 0.74

Overall – 0.50 times

Gala Precision Engineering Limited (GPEL) made a strong debut on the stock market, listing at Rs 750 per share, a significant 41% premium over its issue price of Rs 529. This positive performance reflects the company's robust fundamentals and the strong investor interest evident in the IPO's oversubscription of 201.41 times.

Investors who participated in the IPO are likely sitting on a healthy profit, but it's important to maintain a cautious approach and continue monitoring the company's performance and market conditions. Despite the promising listing, factors such as industry trends, competition, and global economic conditions may still influence the long-term trajectory.

For those considering holding it, you may keep a stoploss at 675.

Bajaj Housing Finance's mega Rs 6,560-crore IPO, which opened for bidding on Monday, 9 September, was subscribed over 26 percent within one hour of opening. HNIs, or non-institutional wealthy investors, had already subscribed over half of their reserved portion.

Bajaj Housing Finance had collected a massive Rs 1,758 crore from anchor investors on Friday. The Rs 6,560-crore initial share-sale will conclude on September 11.

The IPO had received bids for over 17.18 crore shares as of 11 am, out of the 72.76 shares shares on offer, across both NSE and BSE.

The non institutional investors (NII) category received 54 percent subscription, while the portion for Retail Individual Investors (RIIs) got subscribed 29 percent. (Read more)

The drugmaker has been issued a GST demand order of Rs 16.76 crore by the Central Goods and Service Tax, Goa Commissionerate.

The demand is raised in respect of allegedly availing ineligible ITC without proof of actual receipt of services from FY 2017-18 to 2019-20. The company said that it intends to challenge the order by filing an appeal against the said order. There is no material impact on financial or other operations, the company added.

Bina Modi has been reappointed as MD of Godfrey Phillips, with nearly 87 percent of shareholders voting in favour of her reappointment. The Delhi High Court had allowed Bina Modi to vote in the AGM on behalf of the 48 percent shareholding of KK Modi family trust.

Despite pressure in the markets, Gala Precision managed to list in line with our expectations. Even though the offer was fully priced on the higher side with OFS, Gala Precision received a healthy 201x subscription demand considering the market optimism at the time offer bidding.

Considering its business model of manufacturing precision components having specialization in technical springs and the healthy listing gain above 40%. We recommended allotted investors to choose booking profits on the listing day.

Zee Learn shares drop two percent in early trade on September 9, after COO Himanshu Yagnik resigns from his position.

According to a filing with the exchanges, the reason for Himanshu Yagnik's resignation from the position of Chief Operating Officer is due to his willingness to pursue his interests outside the organization. Read More

Rama Steel Tubes ended its five-session long winning streak to fall over 9 percent in early trade on September 9, as investors rushed to take some profits off the table. Over the past five sessions, shares of the steel player had surged almost 60 percent.

So far, over 21 crore shares exchanged hands in trade on the bourses, over 100 percent higher than the one-month daily traded average of 10 crore shares. Read More

Shares of Gala Precision Engineering staged a healthy stock market debut on September 9 after listing at Rs 721.10, a premium of 36.31 percent over the issue price of Rs 529 per share.

Despite the bumper gains, the listing still missed grey market estimates where shares were trading at a premium of about 46 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.

The company's Rs 167.93 crore public offer was a combination of fresh issue of 25.58 lakh equity shares worth Rs 135.34 crore and offer for sale (OFS) of 6.16 lakh shares worth Rs 32.59 crore. The shares were sold at a price band of Rs 503 to Rs 529 apiece in the IPO. Read More