Closing Bell: Sensex up 144 pts, Nifty at 25,000; IT, pharma top drags

Indian benchmark indices ended higher amid volatility on October 10 with Nifty around 25,000. At close, the Sensex was up 144.31 points or 0.18 percent at 81,611.41, and the Nifty was up 16.50 points or 0.07 percent at 24,998.50.

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The markets remained subdued on the weekly expiry day, closing flat after a brief initial rise. Nifty fluctuated within a narrow range and ended at 24,998.45. Sector-wise, banking, metal, and energy sectors posted decent gains, while Pharma and IT saw sharp declines. Broader indices failed to build on early momentum and closed on a mixed note.

The outlook points to consolidation with a negative bias unless Nifty decisively surpasses the 25,300 mark. On the downside, a drop below the recent low of 24,700 could lead to fresh declines. With the earnings season underway, stock-specific action is expected to pick up. Traders should remain cautious and maintain a balanced approach with positions on both sides.

The market traded on a range bound trend with a negative bias ahead of the start of Q2 result. The Asian market started well but could not hold on to the gains as European markets waved on a negative trend in anticipation of the key US inflation data, global bond yields are rising. Domestic broader market momentum was mixed with caution as the initial expectation of Q2FY25 results is subdued due to a subpar momentum in the global and rural demand.

Indian equities commenced the weekly expiry day on a firm note and compounded the morning gains but once again failed to hold on and remained rangebound for the rest of the session; settled at 24,998.45 with gains of 16.50 points. A mixed trend was seen among the sectors where BankNifty was the top gainer followed by Metal while IT and Pharma corrected the most.

Divergence was observed in the Broader markets where Midcaps ended in red while Smallcap outperformed the Benchmark Index. Nothing has changed i.e. support and resistance are very well-placed i.e. 24,900 & 25,200, and breakout on either sides will provide a clear picture.

Nifty opened with gains, however could not continue with the positive momentum and traded within a range to close marginally in the green up ~25 points. On the daily charts we can observe that the Nifty is in the process of retracing the 1500 fall. We believe that the retracement is not complete and there is more steam left for the upside towards 25350 – 25500. Thus, this current consolidation phase should be used as a buying opportunity. Crucial support zone is placed at 24900 – 24850 and should be kept as a stoploss for the long positions.

Bank Nifty witnessed a pullback to the key hourly moving averages (51700 – 51800) zone. We expect the pullback to continue on the upside and towards 52000 – 52400. The upmove is likely to be slow and gradual as there is selling pressure coming in at higher levels. Overall, we believe that the index is likely to trade with a positive bias and hence this intermediate correction should be considered as a buying opportunity.

Indian rupee closed flat at 83.97 per dollar on Wednesday versus Tuesday's close of 83.96.

Indian benchmark indices ended higher amid volatility on October 10 with Nifty around 25,000.

At close, the Sensex was up 144.31 points or 0.18 percent at 81,611.41, and the Nifty was up 16.50 points or 0.07 percent at 24,998.50. About 2152 shares advanced, 1585 shares declined, and 119 shares unchanged.

Top Nifty gainers were Kotak Mahindra Bank, HDFC Bank, Bharat Electronics, Maruti Suzuki and Power Grid Corp, while losers were Cipla, Trent, Tech Mahindra, Sun Pharma and Hero MotoCorp

On the sectoral front, IT index down 1 percent, pharma index down 2 percent and realty index shed 0.4 percent, while bank index up 1 percent, power index was up 0.7 percent and metals index added 0.3 percent.

The BSE midcap index was down 0.3 percent, while smallcap index was up 0.4 percent.

AGS Transact Technologies has received an extension of a contract from the Indian Bank Ltd. for reconciliation of card and non-card transactions.

#1 Equity inflow at Rs 34,393 crore vs Rs 38,212.4 crore, MoM

#2 Large cap fund inflow at Rs 1,769 crore vs Rs 2,636.9 crore inflow, MoM

#3 Small cap fund inflow at Rs 3,071 crore vs Rs 3,209.3 inflow crore, MoM

#4 Midcap fund inflow at Rs 3,130 crore vs Rs 3,054.7 crore inflow, MoM

Shares of Suzlon Energy corrected sharply from the day's high even as the wind turbine player inked a 400 megawatt (MW) captive wind power with Jindal Renewables to lead the decarbonization of steel production.

Bank of Maharashtra reported a 15.46 percent rise in total deposits, reaching Rs 2.76 lakh crore, and an 18.73 percent growth in gross advances to Rs 2.17 lakh crore as of September 30.

The Sensex was up 210.13 points or 0.26 percent at 81,677.23, and the Nifty was up 34.80 points or 0.14 percent at 25,016.80. About 1970 shares advanced, 1411 shares declined, and 92 shares unchanged.

Power Grid Corporation of India has been declared as the successful bidder under Tariff based competitive bidding to establish Inter-State transmission system for the project namely “Transmission system for evacuation of power from Rajasthan REZ Ph -IV (Part-2: 5.5 GW) (Jaisalmer/Barmer Complex): Part F (By clubbing Part F1 & F2)” on build, own, operate and transfer (BOOT) basis.

Tata Consultancy Services, Tata Elxsi, Indian Renewable Energy Development Agency, Anand Rathi Wealth, Den Networks, Arkade Developers, Ashoka Metcast, GM Breweries, Hathway Bhawani Cabletel, Infomedia Press, NB Footwear, and Reliance Naval and Engineering will release their quarterly earnings on October 10.

QIB – 1.08 times

NII - 4.54 times

Retail – 9.20 times

Overall – 5.77 times

India’s heavy industries ministry has ordered an audit to make sure Ola Electric is maintaining its service centers and honoring the warranty given to consumers, Reuters reports, citing people familiar with the matter.

The company has opened its Qualified Institutions Placement (QIP) issue and set the floor price at Rs 3,117.475 per share. According to CNBC-TV18 sources, the QIP issue size may be Rs 4,200 crore.

Shares of Ceinsys Tech rose over 9 percent and hit a 52-week high of Rs 944 on BSE after the company informed the exchanges that its order book surpassed Rs 1,000 crore.

Ceinsys Tech recently received a Letter of Award (LOA) from the State Water and Sanitation Mission (SWSM) of Maharashtra for a project valued at Rs 332 crore. The project involves IoT deployment, design, and implementation of a centralized platform for Jal Jeevan Mission projects, including maintenance over five years.

The Competition Commission of India (CCI) has approved the Tranche 1 acquisition of 42.99 percent shareholding in JM Financial Credit Solutions (JMFCSL) by JM Financial for Rs 1,282 crore. Post acquisition of Tranche 1, JM Financial's shareholding in JMFCSL will increase from 46.68 percent to 89.67 percent. Additionally, the CCI has also approved the acquisition of 71.79 percent shareholding in JM Financial Asset Reconstruction Company (JMFARC) by JMFCSL from JM Financial for Rs 856 crore. Following the stake sale, JM Financial's shareholding in JMFARC will become nil, and JMFARC will cease to be a direct subsidiary of the company.

The company has completed the acquisition of 100 percent of the legal and beneficial interest of the total securities of Sunbeam Lightweighting Solutions and has subscribed to 24 crore optionally convertible debentures (OCDs) of Sunbeam for Rs 240 crore. Additionally, Ajay Battu has joined the company as its Chief Technical Officer – Aluminium Products, effective October 9.

The Sensex was up 181.12 points or 0.22 percent at 81,648.22, and the Nifty was up 35.20 points or 0.14 percent at 25,017.20.

#1 Board approved a QIP for an amount of up to Rs 7,500 crore, implying 4 percent equity dilution

#2 Company intends to use QIP proceeds for debt repayment, to strengthen balance sheet & for growth

#3 A faster ROIC expansion is possible as value shifts from debt to equity holders

#1 CMP implies standalone business trading at 7x FY27E P/E

#2 Production growth outlook robust, posting 9 percent CAGR in FY24-27

#3 Expansion of refinery capacity; new CGDs driving demand

RCF has approved awarding an order worth Rs 1,000.3 crore to Larsen & Toubro for setting up a 1200 MTPD (DAP basis) complex fertilizer plant on an LSTK basis at RCF, Thal.

#1 Net profit falls 61.7 percent to Rs 13.74 crore Vs Rs 35.9 crore, YoY

#2 Revenue increases 9.8 percent to Rs 855.6 crore Vs Rs 779.2 crore, YoY

#3 EBITDA declines 13.6 percent to Rs 107.4 crore Vs Rs 124.3 crore, YoY

#4 Margin drops to 12.55 percent Vs 16 percent, YoY

QIB – 0.91 times

NII - 3.77 times

Retail – 8.60 times

Overall – 5.27 times

SpiceJet announced the commencement of new UDAN flights connecting Shivamogga in Karnataka with Chennai and Hyderabad, starting from October 10, 2024.

A subsidiary of Rain Industries and Canada's Northern Graphite are jointly developing natural graphite anode materials, to enhance the life and charging speed of lithium-ion battery cells.

The joint agreement, signed on October 9, will develop advanced battery anode material (BAM), used in lithium-ion batteries used in electric vehicles. In a lithium-ion battery, the anode, or negative electrode, is typically made up of graphite, coated on copper foil. The anode is a critical part of any lithium-ion battery's life cycle.

Share of Oil India rose over 3 percent to Rs 594 in the morning on October 10 after Motilal Oswal Financial Services (MOFSL) reaffirmed its 'Buy' rating with a target price of Rs 720. The domestic brokerage highlighted the stock's attractive valuation and a solid outlook for volume growth.

Oil India shares have corrected almost 25 percent from their record high of Rs 768 on August 30, following weak crude oil prices. However, MOFSL believes the stock remains appealing. It estimates that Oil India's standalone business, excluding investments and its stake in Numaligarh Refinery (NRL), is trading at 7x FY27 estimated earnings, which it views as inexpensive.

MOFSL says that even in the unlikely event that crude oil prices drop to USD 60 per barrel and gas prices fall to USD 6 per mmbtu, its target price would still be Rs 563 per share—implying only a 2 percent downside from the current market price.

AA Plus Tradelink has informed BSE that the meeting of the Board of Directors of the company is scheduled on 24/10/2024, to consider stock split and bonus issue.

#1 Steady policy rates & change in stance in-line with our expectations

#2 Pivot likely to shallow rate easing cycle, as inflation outlook turns benign

#1 Repo rate kept unchanged at 6.5 percent; policy stance changed to 'neutral'

#2 Softening in domestic growth momentum; near-term upside to inflation

#3 Stay Long bonds, but expect some near-term external bumps

#1 RBI changes policy stance but balances it with robust growth outlook

#2 Continue to expect a shallow easing cycle of total 50 bp rate cuts

#1 Core ARR revenue & AUM to grow faster vs overall business; TBR a plus

#2 Core profitability expected to improve, backed by higher operating leverage

#3 New business avenues - HNWI and global business pose upside risks

#4 Expect RoE to improve from 24.5 percent in FY24 to 32 percent in FY27 & 36-37 percent by FY29

#1 Company signed a concession agreement for development/operation of the Nagpur airport

#2 The Nagpur Airports is relatively small currently

#3 Nagpur is of strategic importance being at geographic Center of India

#4 Airport has an attractive revenue share at 14.49 percent with company moving to 100 percent ownership

#5 Believe, the agreement should lead to a stronger growth trajectory