Closing Bell: Nifty around 25,400, Sensex up; power gains, FMCG drags

Indian equity indices ended higher with Nifty around 25,400 on September 16 led by buying across the sectors barring FMCG. At close, the Sensex was up 97.84 points or 0.12 percent at 82,988.78, and the Nifty was up 27.30 points or 0.11 percent at 25,383.80.

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.

Today, the benchmark indices witnessed lackluster activity, the Nifty ends 27 points higher while the Sensex was up by 98 points. Among Sectors, Media index was the top gainer, rallied over 1 percent whereas FMCG stocks witnessed intraday profit booking at higher levels. Technically, after positive opening entire day the market hovered between 23350 to 25440/82850-83100.

A small bearish candle on daily charts and range bound activity on intraday charts indicating indecisiveness between the bulls and the bears. We are of the view that, the larger texture of the market is bullish but we could see a range bound activity in the near future.

For the traders now, 25350 and 25300/82900-82700 would be the key supports zone while 25500-25575/83300-83600 would act as key resistance areas. However, below 25300/82700 the sentiment could change. Below the same, traders may prefer to exit out from the trading long positions.

The markets remained lackluster for another session, closing marginally in the green, extending Friday's brief recovery. After an initial uptick, the Nifty traded within a narrow range, eventually settling at 25,383.75 level. Sectoral trends were mixed, with energy and metals showing decent gains, while FMCG and IT saw slight declines. Market breadth leaned slightly positive, aided by selective buying interest in the midcap and smallcap segments.

The ongoing time-wise correction in the index is seen as healthy, and participants are encouraged to stick with a "buy on dips" strategy. We continue to favor banking, financials, realty, metal, and IT sectors. Traders should focus on identifying stronger stocks with relative strength, accumulating them gradually during this phase.

The Nifty index remained range-bound throughout the session as traders opted for caution ahead of a significant event. The technical chart shows no change in formation compared to the previous day. The trend continues to be strong, though with limited upward potential in the short term.

Key support levels are still intact between 25,150-25,200, while resistance is positioned around 25,460-25,500. A decisive breakout from the current range might initiate a directional move.

The Index oscillated in an extremely thin range of 25,350-25,420 and finally settled at 25,383.75 with gains of 27.25 points. Among the sectors, Media was the top performer followed by Energy and Metal while FMCG was the major laggard. Mid and Smallcap segments more or less moved in tandem with the Frontline Index.

On the lower time frame, i.e. hourly chart, it appears that the Index is forming a Bullish Pennant and Pole formation where a strong move above 25,430 will be considered as a breakout point. In case of a breakout, the approximate target comes at 25,770.

The domestic market traded in a narrow range with a positive bias as the participants are keenly awaiting the FEDs decision this week. The weakness in the US job market and benign inflation are pointing at a slew of rate cuts on the table. The inflow of foreign money and an expectation of stability in domestic growth may keep sentiment optimistic.

Indian rupee ended flat at 83.88 per dollar on Monday against Friday's close of 83.89.

Indian equity indices ended higher with Nifty around 25,400 on September 16 led by buying across the sectors barring FMCG.

At close, the Sensex was up 97.84 points or 0.12 percent at 82,988.78, and the Nifty was up 27.30 points or 0.11 percent at 25,383.80. About 2080 shares advanced, 1862 shares declined, and 85 shares unchanged.

Top Nifty gainers included NTPC, JSW Steel, Hindalco Industries, Shriram Finance and L&T, while losers were Bajaj Finance, HUL, Bajaj Finserv, SBI Life Insurance and Britannia Industries.

Among sectors, except FMCG and Telecom, all other sectoral indices ended in the green with bank, capital goods, power, realty, media, metal up 0.4-1 percent.

The BSE midcap index ended flat, while smallcap index was up 0.3 percent.

#1 Company reiterated its strategy of profitable growth

#2 For deposits, it will target non-resident Indians & affluent clients, improve branch productivity

#3 Partnerships to be enhanced for granular deposit growth

#4 Company believes credit costs for the system & the bank in FY24 are unsustainable

#5 A net credit cost of 0.97 percent in Q1 is not reflective of expectations for FY25

#1 Company’s topline growth over past few quarters has been driven by low-margin formulations segment

#2 Topline growth via low-margin formulations segment is the not the ideal mix

#3 Company posted a slightly below par API growth print in FY24 & Q1FY25

#4 Expect a pick-up from Q2

#5 Do not expect any major delta on overall earnings given miniscule scale of company’s CDMO segment

#6 Sharp 32 percent rally in stock price over past 1 month renders valuations expensive

Strides Pharma Science announced that its step-down wholly owned subsidiary, Strides Pharma Global Pte. Limited, Singapore, has received approval

for Fluoxetine Tabs 60 mg, from the United States Food & Drug Administration (USFDA).

#1 No longer the leader as 2-3 players consolidate

#2 Brookfield has concluded 100 percent acquisition of American towers India business at an EV of USD 2.2 billion

#3 Brookfield will combine its India Telecom infra under New Brand 'Altius'

#4 While Jio almost entirely uses summit in rural sites, company is Indus' tenant in certain urban sites

#5 FY24 could represent peak earnings for company if Voda-Idea continues to gradually lose share

On Monday, both the Sensex and Nifty began the week on a positive note as traders looked ahead to the potential impact of the Federal Reserve rate cut. For the Nifty, we anticipate continued strength in the technology sector and a rebound in banking stocks, which could propel the index towards the 25,800 level in the coming weeks. Key support is expected between 25,200 and 25,300.

In the case of the Bank Nifty, although some covering occurred last week, a clear trend reversal will only become evident if the index breaks above the 52,000 mark. The support zone for the Bank Nifty is projected between 51,650 and 51,775.

Looking ahead, all eyes will be on the Federal Reserve's rate decision on Wednesday. A substantial reduction in rates could potentially boost foreign investment and significantly influence market trends in the near term.

#1 Defense share can rise to 25 percent by FY30

#2 Defence & industrial segments likely to offset cyclical slowdown in global CVs

#3 Upside risks include further orders for defense exports

#4 Increased traction in aerospace & other non-auto segments is also upside risk

#5 Downside risk includes steeper decline in global CVs & slower margin expansion of global arms

Indian Rupee appreciated on Monday amid positive domestic markets and weakness in the American currency (US Dollar). FII inflows also favoured the Rupee. However, firm crude oil prices capped sharp gains.

We expect Indian Rupee to trade with a slight positive bias on continued weakness in the US Dollar ahead of the FOMC meeting this week. There are broad expectations of a 25 bps rate cut by the Fed following a 25 bps rate cut by ECB last week. Fresh foregn inflows and a positive tone in equity markets may further support the domestic currency. However, a recovery in crude oil prices may cap sharp upside. We expect USDINR to trade in the range of 83.70-84.10.

#1 Over past 3.5 months share corrected nearly 30 percent

#2 Correction happened over concerns around higher corporate asset quality stress

#3 Slower deposits growth for system & regulatory headwinds led to sector underperformance

#4 At 0.8x P/B & 3.8 percent dividend yield, bank is now trading close to historical average

#5 There is enough margin of safety built into both valuations & estimate

#6 Core PPOP is superior to peers & hence allows bank to absorb higher credit costs

Thermax Babcock & Wilcox Energy Solutions Ltd (TBWES), a wholly-owned subsidiary of Thermax, has secured an order worth Rs 516 crores for the supply of two 550 TPH Circulating Fluidized Bed Combustion (CFBC) boilers.

The company has appointed Nehal Vora as its new Managing Director and CEO, effective September 18, 2024. Approved by the board and SEBI, Vora's five-year term will run until September 17, 2029, with terms and remuneration subject to shareholder ratification.

The Sensex was up 135.94 points or 0.16 percent at 83,026.88, and the Nifty was up 41.70 points or 0.16 percent at 25,398.20. About 1861 shares advanced, 1652 shares declined, and 90 shares unchanged.

The company has invested Rs 100 crore in its wholly-owned subsidiary, Exide Energy Solutions Ltd (EESL), via a rights issue. With this investment, Exide Industries' total funding in EESL has reached Rs 2,752.2 crore, maintaining its 100 percent shareholding in the subsidiary.

The company's wholly-owned subsidiary, Zydus Lifesciences Global FZE, has signed an exclusive licensing and supply agreement with Viwit Pharmaceuticals for two gadolinium-based MRI contrast agents for the US market.

SpiceJet's market share dropped to 2.3 percent in August from 3.1 percent in July, marking a fifth consecutive month of decline. The airline, which carried 302,000 passengers in August, has seen its market share decrease from a peak of 10.7 percent in February 2022.

The company told CNBC-TV18 that it has secured approval to raise funds via a postal ballot, with 99.8 percent approval. This move is part of the airline's turnaround strategy, which includes plans to raise Rs 2,500 crore through a QIP and Rs 736 crore from warrants and promoter contributions.

In August, IndiGo's market share rose to 62.4 percent, up from 62 percent in July, reversing a decline of 80 basis points in June. After losing 160 basis points in January 2024, the airline's market share has been improving. IndiGo carried 8.19 million passengers in August.

#1 Honda confident of replacing Hero as Number 1 in FY25

#2 Company has already managed a narrow lead in April-August dispatches

#3 Honda management aims to surpass Hero on retail front as well for FY25

#4 Start of festive season is already giving a head-start to Honda

#5 Month to date retail market share lead of 370 bps over Hero

#6 As per company, strong demand for scooters (especially in smaller cities and towns) is driving the gain

#7 Robust demand for motorcycles, including shine 100, is driving the gain

#8 Company plans to build on this with a foray into EVs

The company has received an arbitration award, which includes a refund of the security deposit from Rock Reality Private Limited, amounting to Rs 2,14,26,000, along with damages of Rs 25,00,000. The award was pronounced on September 10, 2024.

This award pertains to the arbitration case between Royal Orchid Hotels Limited and Rock Reality Private Limited, conducted under the Arbitration and Conciliation Act, 1996.

The company, in its board meeting, approved an investment to develop a mixed-use project in Pune, comprising i) A Trident Hotel with approximately 175 keys (1.81 lakh sq. ft.), ii) A commercial development featuring office space and food-and-beverage-focused retail outlets (4.08 lakh sq. ft.) and iii) The total estimated cost of the project is Rs 972 crores, with commercial operations expected to commence in Q1 FY 2029-30.

The Sensex was down 12.68 points or 0.02 percent at 82,878.26, and the Nifty was at 25,357.10.

Adani Green Energy will sign a long-term Power Purchase Agreement (PPA) with the Maharashtra State Electricity Distribution Company Limited (MSEDCL), based on the Letter of Intent (LOI), for the supply of 5 GW (5000 MW) of solar power. This will come from the world’s largest renewable energy park, currently being developed at Khavda in Gujarat’s Kutch District, to the state of Maharashtra, as outlined in the LOI awarded to Adani Power Limited, in line with tender conditions.

Meanwhile, Adani Power Limited (APL) will enter into a long-term Power Supply Agreement (PSA) with MSEDCL for the supply of 1496 MW (net) of thermal power to Maharashtra. This power will be sourced from a new 1600 MW ultra-supercritical thermal power project.

The executive committee of the board of the ideaForge Technology on September 16, 2024 has approved the allotment of 3,936 equity shares having face

value of Rs. 10/- each towards the exercise of vested stock options under the ideaForge Employees Stock Option Scheme, 2018.

New fund offers (NFOs) and lower redemptions played a key role in the spike in inflows in large-cap mutual fund schemes, which saw a near three-fold rise in the net flows in August even as experts suggest it is too early to conclude a shift in investor behaviour or preference. In August, large-cap scheme saw net inflows to the tune of Rs 2,637 crore, a 293 percent increase as compared to July, as per data from the Association of Mutual Funds in India (AMFI). READ MORE

Shares of Adani Power Ltd and Adani Green Energy soared around 6 percent on September 16 after the two Adani group companies said they have received a Letter of Intent (LoI) for the supply of 6,600 MW hybrid solar and thermal power from Maharashtra State DISCOM. Adani Green Energy is set to supply 5 GW (5,000 MW) of solar power from Khavda, marking the largest solar power capacity award globally. READ MORE

#1 Expect steady credit growth at 12-15% in housing finance industry

#2 On a steady state basis, no impact on NIM from listing, NIM likely to remain stable

#3 Rate cuts do not impact demand, did not see any impact when rates were higher

#4 Have grown faster than industry due to diversified book, leveraging tech and data

#5 Predominant portion of loan book will continue to be home loans

JSW Renew Energy Two Limited, a 100% step-down subsidiary of the company, has commissioned 300 MW of wind power capacity as part of the 450 MW ISTS-connected wind power project, awarded under Solar Energy Corporation of India's Tranche X, located in Tuticorin, Tamil Nadu.

Indian food-delivery platform Swiggy Ltd. is considering filing publicly for its domestic initial public offering as soon as this week, people familiar with the matter said, adding to a strong pipeline of share sales in the country.

Swiggy’s IPO may seek to raise more than $1 billion, the people said, asking not to be identified as the information isn’t public. The Bengaluru-based company is waiting to get approval from India’s Securities and Exchange Board of India, known as Sebi, to proceed with the IPO filing, the people said. Read More

The company announced its intention to challenge a recent GST order from the West Bengal government demanding a total of Rs 5.6 crore for the period from April 2020 to March 2021.

In its initial disclosure on September 13, Zomato said that the company might pay the GST amount demanded due to the high cost of litigation. However, the company has now clarified that it intends to file an appeal against the order, rather than agreeing to pay the amount.

SMRC Automotive Holdings Netherlands B.V. has approved to execute a joint venture agreement with Hamakyorex Co. Ltd, Japan. SAHN B.V.

Shares of Shubhshree Biofuels Energy made a robust start on its stock market debut on on September 16 after listing at Rs 189, commanding a massive premium of 58.8 percent over the issue price of Rs 119 per share on the NSE SME platform.

The listing gains, however, miss grey market estimates where shares were trading at a premium of about 63 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 Kross Limited made a lacklustre start on its stock market debut on September 16 after listing at Rs 240, same as the issue price on the Bombay Stock Exchange (BSE).

The listing completely misses grey market estimates where shares were trading at a premium of 10 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

Bajaj Housing Finance, the housing finance arm of the renowned Bajaj Group, made a spectacular stock market debut, listing at Rs 150 per share, a staggering 114 percent premium over its issue price of Rs 70. This blockbuster performance was widely anticipated, given the IPO's overwhelming subscription of 67.43 times and the sky-high grey market premium.

The listing reflects investors' unwavering confidence in the company's robust financials, backed by the prestigious Bajaj Group.

Bajaj Housing Finance's consistent growth, coupled with its reasonable valuation, made it a highly attractive investment proposition.

This successful debut is a testament to the company's strong fundamentals and the market's anticipation for its growth potential. Investors who were fortunate enough to secure allotments in the IPO may consider booking profit now, but those who want to hold their positions may do so by potentially setting a stop loss at Rs 135 as a risk management strategy. However, it's essential to continuously monitor the company's performance and market conditions for informed decision-making.

Bajaj Housing Finance shares made a strong debut on stock markets on Monday, September 16, listing at Rs 150 per share on both NSE and BSE, with a premium of 114 percent over the IPO issue price. Bajaj Housing Finance shares were allotted to successful IPO bidders on September 13 at an issue price of Rs 70 per share. Read More

The Sensex was up 220.35 points or 0.27 percent at 83,111.29, and the Nifty was up 0.25 percent at 25,420.20.

Route Mobile announced today that its promoter entity, Proximus Opal S.A., has successfully divested a 6.03% stake in the company through an Offer for Sale (OFS) on Sep 12 and 13, 2024, in addition to the 1.95% sell down that was completed on 26 July 2024, to comply with the minimum public holding requirement of 25%.

#1 Solid earnings visibility with right capital-allocation strategies; visible rerating triggers

#2 Expect pre-sales growth at 20 percent CAGR over FY25-26

#3 Company has ample potential to exceed business development goals to maintain future growth

#4 Palava on cusp of infra upgrades, to benefit from both volume & price growth

#5 Stock currently trades at 32x 2025 EV/EBITDA

#6 Key Risks: slowdown in India residential market or delay in infrastructure upgrades around Palava