Closing Bell | Sensex up 90 pts, Nifty ends above 25400; Bharti Airtel, NTPC, M&M, Titan top gainers

Markets remained subdued for the third consecutive day, ending slightly in the green. After a flat opening, the Nifty moved within a narrow range, closing at 25,418.55. Sector-wise, realty and auto saw gains, while metal and pharma ended in the red. Simultaneously, profit-booking in the midcap and smallcap segments led to weaker market breadth.

The recent market action suggests that participants are in a wait-and-watch mode ahead of the US Fed meeting, although rotational buying in large-cap stocks is maintaining a positive tone. We recommend continuing with a “buy on dips” strategy, targeting an upside of 25,550 in the Nifty. Additionally, selective sectors like banking, financials, realty, and IT are presenting stock-specific buying opportunities so plan the trades accordingly.

The Indian stock markets closed with mixed results. The Sensex and Nifty indices experienced slight fluctuations due to a combination of global macroeconomic factors and local developments. Some sectors that ended in green were realty, consumer durables.Some of the key drivers were global cues, macroeconomics, rupee weakened against US dollar, adding some pressure to the markets. Overall, today's session reflected caution among investors due to external factors and upcoming policy announcements.

Nifty 50 ended at the highest closing level on Sept 17 after a narrow range day. At close, Nifty was up 0.14% or 34.8 points at 25418.6. Cash market volumes on the NSE were flat compared to the previous session. Broad market indices ended marginally in the negative even as the advance decline ratio fell to 0.62:1.

Shares mostly advanced in Europe and Asia on Tuesday as world markets awaited an expected interest rate cut by the Federal Reserve.European stocks hit a two-week high on Tuesday ahead of the US and UK Central Bank meets.

India's wholesale inflation was the lowest in four months, because of a slower price rise across commodities. The Wholesale Price Index rose 1.31% in August from a year ago, compared to a rise of 2.04% in July. A Bloomberg poll of economists had forecast wholesale inflation at 1.78% for August.

Nifty formed a small sideways doji candle resulting in three days of narrow range moves. Nifty is in the process of consolidating ahead of the big event. A breakout of 25292-25442 band could result in sharper move in that direction.

Range-bound session continued for a second straight session ahead of key US Fed policy meet decision on Wednesday. Also, investor participation was thin on account of Ananta Chaturdashi, and hence buying was seen in select frontline stocks. Besides rate cut hopes, the Fed chief's comment on the US economy and inflation will be key things to look for as it will give some indication of the future rate cut prospects.

Gold traded weaker, pressured by a sharp rise in the rupee, causing MCX gold to drop below ₹73,250, down by 0.35%. Meanwhile, Comex gold also saw a decline of 0.25%, falling to $2,573. Prices struggled to hold above ₹73,500, with traders now focused on the major upcoming event, the Federal Reserve’s interest rate decision on Wednesday, 18th September 2024, late evening IST. A retracement towards Rs72,250 is likely, where strong support is expected. In Comex, gold is taking support around $2,540-$2,530. Given the potential for significant overnight gaps due to the Fed's decision, traders should exercise strict risk management strategies.

Today, the benchmark indices continued range bound activity, the Nifty ends 34 points higher while the Sensex was up by 105 points. Among Sectors, selective Auto stocks witnessed buying interest whereas Media index was the top looser, shed over 1 percent. Technically, after a muted open entire day the market trade above 25350/82900. A positive consolidation on intraday charts indicating further uptrend from the current levels.

For the trend following traders now, 25350/82900 and 25300/82700 would act as a key supports zone. As long as the market is trading above the same, the bullish texture is likely to continue. On the higher side, it could move up till 25550-25650/83400-83800. On the flip side, below 25300/82700 the sentiment could change. Below the same, we could expect one quick correction till 25225-25200/82400-82200.

Nifty continues to consolidate near its all-time high, where a trendline resistance is observed. A breakout from the recent range-bound pattern could provide a clear direction for the Nifty. Immediate support is at 25,350, and a fall below this level might lead to the unwinding of put option writing positions, potentially triggering a correction toward 25,000. On the upside, resistance is seen at 25,500, and a strong upward move may be expected if Nifty breaks above this level.

The Indian market exhibited a subtle positive momentum, driven by the anticipation of a rate cut cycle by the US FED. Although a 25-bps cut is largely factored in, the market remains attuned to the FED's comments on the health of the economy and the future trajectory of rate cuts. Further, robust institutional flows continued to bolster the domestic market. While the overall trend remained positive, there was notable buying interest in large-cap stocks, particularly in sectors such as IT, FMCG, and private banks.

India's benchmark Sensex wrapped up the day at 83,079.66 points, climbing 90.88 points or 0.11%. The Nifty 50 Index settled at 25,418.55 points, up by 34.80 points or 0.14%. Among the listed companies, 1,713 advanced, 2,236 declined, and 109 remained unchanged.

#1 Jupiter Wagons: New forged wheelsets plant operational by 2027

BNP Paribas Markets 360 suggests that euro might rise against dollar, not decline, in the event of a recession, diverging from past trends. Sam Lynton-Brown cites the dollar's vulnerability due to high U.S. rates and reduced sensitivity of euro and bond spreads to risk-off periods.

Bitcoin traded flat at $58,638.79 on Tuesday, down 0.5 percent ahead of the Federal Reserve’s FOMC meeting on Wednesday. Major altcoins showed mixed performance, with Ethereum (ETH), Tether, Solana, XRP, and Tron gaining up to 1% by 1:15 pm, while Avalanche, Shiba Inu, Cardano, and BNB declined by up to 5 percent.

EaseMyTrip has forayed into the medical tourism industry as it acquires 30 percent stake in Rollins International for Rs 60 crore and 49 percent stake in Pflege Home Health for Rs 30 crore.

Suzlon Energy stocks fell over 4 percent on profit booking. Shares of renewable energy solutions provider Suzlon Energy have given multibagger returns of over 110 percent in just 3 months and have increased by 115 percent so far this year, as the stock sustains its positive momentum.

#1 Acquires 30% stake in Rollins International for Rs60 crore

#2 Also buys 49% stake in Pflege Home Health for Rs30 crore

We expect MCX to deliver a CAGR of 31%/154%/119% in revenue/EBITDA/PAT over FY24-27E, led by a 56% CAGR in options volumes. We highlight several near- to medium-term drivers of volume growth: 1) new product launches - index options, 10g monthly gold futures, cotton seed wash oil, crude sunflower oil contracts and many more in pipeline; 2) continued volatility in key commodity prices (gold, crude oil & natural gas) amid global uncertainties; and 3) a rise in retail participation in the options market.

We expect no impact from competition on MCX's volumes, as similar products are currently available on other exchanges. With the technology overhang behind MCX and near-term potential drivers in place, we see meaningful re-rating potential. We reiterate our BUY rating on the stock with a TP of INR6,500 (premised on 42x Sept’26E EPS).

RattanIndia Enterprises' subsidiary, Revolt Intellicorp Private Limited, is set to make a grand launch of its latest electric motorcycle on September 17, 2024.

Tata Elxsi has inaugurated the "XG-FORCE" 5G Applications Lab, designed to drive cross-industry digital transformation.

#Northern Arc Capital's IPO is 5x subscribed on Day 2, with GMP rising to 68 percent

# The IPO, open since Monday, is seeing strong demand from non-institutional investors (9x) and retail investors (6.6x).

#Qualified Institutional Buyers have subscribed 2 percent.

# The issue, with an offer for sale of Rs 277 crore and a fresh issue of Rs 500 crore, closes on September 19.

KRN Heat Exchanger's IPO will open on September 25 and end on September 27, with anchor investor bidding opening for a day on September 24.

#The IPO includes a fresh issue of 1.55 crore shares and no OFS.

#Funds will expand manufacturing at Neemrana, Rajasthan.

#In Aug, the company raised Rs 9.54 crore through pre-IPO placements.

RailTel Corporation has received a work order from Health Insurance TPA of India Ltd. for the development of an Integrated Claims Management Solution Portal and a Mobile Application. The contract, awarded by a domestic entity, focuses on creating a streamlined system for managing health insurance claims. This solution will enhance the efficiency of claims processing through the use of digital tools.

At 12:13 hrs IST, the Sensex was up 63.17 points or 0.08 percent at 83,051.95, and the Nifty was up 28.50 points or 0.11 percent at 25,412.30. About 1332 shares advanced, 2021 shares declined, and 96 shares unchanged.

The Wholesale Price Index (WPI) inflation for August decreased to 1.31 percent, compared to 2.04 percent in the previous month. This decline indicates a reduction in the rate of price increase at the wholesale level, reflecting easing inflationary pressures.

Japan's Nikkei fell over a percent to 36,203.22, impacted by concerns over a stronger yen and anticipation of a significant U.S. Federal Reserve interest rate cut. The Topix index dropped 0.6 percent.

Outlook: The company has a well-diversified and robust order book position which gives healthy revenue visibility for the next 3-4 years. Moreover, favourable government thrust on building infrastructure and the revival of private Capex are boosting the overall sentiments, which augers well for the company moving forward.

Valuation & Recommendation: We expect its Revenue/EBITDA/APAT to grow at a CAGR of 21%/26%/33% respectively over FY24-26E. The stock is currently trading at 19x FY26E EPS. We value ACIL at 22xFY26E EPS to arrive at a target price of Rs 1,340/share, implying an upside of 13% from the CMP. We, therefore, change our rating from HOLD to BUY.

The board of Zydus Life Sciences has approved a business transfer agreement to acquire the API (Active Pharmaceutical Ingredients) business of Sterling Biotech for Rs 84 crore.

TrustDeed, TML Securities Trust sold 1.14 crore shares of Tata Motors on the stock exchanges today for the purpose of distribution of fractional share entitlement. Axis Trustee will now proceed to distribute sale proceeds.

Tata Power’s CEO has announced that the company plans to invest approximately Rs 70,000 to Rs 75,000 crore in expanding its renewable energy capacity over the next 5 to 6 years. This strategic investment underscores Tata Power's commitment to enhancing its renewable energy portfolio and driving sustainable growth.

Nureca has announced that it has entered into a distribution agreement that will make its products available on a prominent quick commerce platform in India. The company also reported that, due to additional orders from distributors, it now expects sales to surpass the materiality threshold.

Shares of Globus Spirits Limited rose 4 percent to Rs 1,370 in morning trade following the announcement of its entry into the luxury whisky market with the launch of DŌAAB India Craft Whisky. This new range marks the company's foray into high-end whisky, bringing a fresh perspective to the growing segment. DOAAB India Craft Whisky, a limited-edition series, draws inspiration from the Hindi word "DOAAB," which means the land between two rivers, reflecting the fusion of diverse influences. READ MORE

Valuations of HFCs show a stark picture of divergence and investors will be better off taking calculated risks. READ MORE

Shares of Ola Electric Mobility were off to a positive start on the bourses on September 17 after rising 5 percent to Rs 113 in morning trade after two brokerages -- BofA and Goldman Sachs -- initiated coverage on the counter with a 'buy' recommendation on the positive growth outlook. While Goldman has assigned a price target of Rs 160, BofA has a target price of Rs 145 per share. This target price (Rs 160) implies an upside potential of 50 percent from the previous close on the National Stock Exchange. READ MORE

#1 Company is poised to clock 5x growth in its installed capacity to 50 GW+ by FY30

#2 Growth to be led by 30GW/ 11GW installation in Khavda/Rajasthan

#3 New age tech & higher share of merchant/C&I power will drive revenue of 34 percent over FY24-30

#4 EBITDA/PAT to be at a CAGR of 37 percent/60 percent over FY24-30 period

#1 View company as positively levered to long-term structural trends in India’s e2W market

#2 See debates around in-house battery cell manufacturing as key driver of volatility for stock in coming year

#3 See D2C sales & after-sales model, as key drivers of volatility for stock in coming year

#4 Expect FY24 to FY30 revenue growth of +40 percent CAGR, implying FCF breakeven in FY30

#5 Expect company to achieve 11.9 percent/27 percent EBITDA margin/ROIC by FY30

#6 Key Risks - competitor response, ability to execute on in-house cell manufacturing

#1 Volume trajectory (organic/inorganic) could continue to surprise positively

#2 Infrastructure development and CNG fleet expansion to drive volumes

#3 Raise FY25-27 total volumes expectations 7-11 percent

#4 Increase FY25- 27 EBITDA/scm estimate 6-11 percent, factoring in MGL's pricing actions

# 5 Potential M&A opportunities are not priced in

Birlasoft, GNFC, LIC Housing Finance, Aarti Industries, Balrampur Chini Mills, Bandhan Bank, Chambal Fertilisers and Chemicals, Granules India, Hindustan Copper, RBL Bank

Container Corporation of India, Dilip Buildcon, Dixon Technologies, NLC India, NMDC, Blue Jet Healthcare, Allcargo Logistics, Andhra Sugars, Anupam Rasayan India, Apollo Pipes, Ashiana Housing, 3B BlackBio Dx, Bal Pharma, Basant Agro Tech, Bharat Bhushan Share & Commodity Brokers, Blue Chip Tex Industries, Carysil, Century Plyboards, De Nora India, Divyashakti, Delton Cables , Dreamfolks Services, Edelweiss Financial Services, Elnet Technologies, Finolex Cables, GOCL Corporation, Garware Hi-Tech Films, Gufic Biosciences, Gujarat Craft Industries, Heidelbergcement India, Hindustan Hardy, IB Infotech Enterprises, Indo Amines, Jaysynth Orgochem, J Kumar Infraprojects, Kingfa Science & Technology, Kirloskar Industries, KNR Constructions, Likhitha Infrastructure, LT Foods, Mangal Credit, Marathon Nextgen Realty, Marksans Pharma, Mastek, Nettlinx, Oricon Enterprises, Paradeep Phosphates, Prakash Pipes, Prakash Industries, Popular Vehicles and Services, Rapid Investments, Riddhi Siddhi Gluco Biols, Rithwik Facility Management Services, Ruchira Papers, Sadhana Nitrochem, Sal Automotive, Samkrg Pistons & Rings, Sandhar Technologies, Narmada Gelatines, Signet Industries, SKM Egg Products, Savita Oil Technologies, Spenta International, Star Paper Mills, Suprajit Engineering, Talbros Automotive Components, Tamilnadu Petroproducts, TPL Plastech, Trishakti Industries, Venus Pipes & Tubes, Veritas (India), Vidhi Specialty Food Ingredients, Wonder Electricals, Windlas Biotech, Southern Gas

Globally equity markets were flat yesterday signalling a wait and watch mood in anticipation of the Fed rate action tomorrow. The Fed rate action will depend on the incoming data and evolving outlook and, therefore, what the Fed chief Powell says will be crucial. Rate cuts are positive for markets and higher rate cuts are more positive. But if the incoming data signals a sharply slowing economy and the Fed cuts by 50bp the market is unlikely to treat it as positive. It is possible that the market may take it as a signal of the US economy tipping into recession and, therefore, the response need not be positive.

Banking stocks have been exhibiting strength recently and there are signs of accumulation in these attractively valued segments. The finance minister’s remark in a recent interview cautioning investors about the dangers of excessive speculation has come at the right time.

#1 Target raises to Rs 700 from Rs 400

#2 Inorganic growth prospects complement strong near-term fundamentals

#3 Expect volume growth trajectory to improve

#4 Expect volume to improve from about 4 percent YoY in FY24 to 8.2 percent CAGR in FY24- 27

#5 Infrastructure expansion and new geographies set to drive volumes

#6 Potential M&A opportunities not priced in

#1 Ola is largest electric two-wheeler company in India with a share of 40 percent

#2 e-scooters now priced even below petrol scooters, which is an important inflexion on EV curve

#3 Ola has sorted out key pieces of EV puzzle – proven & expanding product portfolio

#4 Forecast EVs will reach 18 percent penetration rate by FY28 and 25 percent by FY30 in 2 Wheelers

#1 Company focuses on ‘desirable’ sweet spot for many home loan aspirants – a ticket size of Rs 5 million

#2 With focus on home loan aspirants, company addresses 65 percent of home loan originations in India

#3 Construction finance book will be rangebound at 8-10 percent of its total book

#4 In three years, the company is likely to have a balance sheet of more than Rs 2 lakh crore

#5 Near-term credit costs will remain benign

Samvardhana Motherson's Qualified Institutions Placement (QIP) of shares has opened with a floor price of Rs 188.85 per share, the company said in a late evening exchange filing on September 16.

The issue price is at a 2.6% discount to Monday's closing price.

SpiceJet has opened a QIP to raise up to Rs 3,000 crore at a floor price of Rs 64.79 per share, the company said on September 16, informing exchanges about a preliminary placement document.

The airline said it may offer a discount on the floor price. CNBC-TV18 reported citing sources that the Indicative Issue price of the QIP is Rs 61.60/share, which is at a discount of 20.81% to Monday's closing price.

Though the size of the QIP has not been disclosed officially, the airline said in the past it has board approval to raise Rs 3,000 crore. The entire proceeds of the fund raise will be available to the airline, the statement added.

Despite mixed global cues, the Indian indices opened flat on September 17.

The Sensex was down 64.65 points or 0.08 percent at 82,924.13, and the Nifty was down 13.50 points or 0.05 percent at 25,370.30. About 1411 shares advanced, 1075 shares declined, and 132 shares unchanged.

Tata Consumer, Hindalco, Britannia, ONGC and HUL were among major gainers on the Nifty, while losers were Tata Motors, TCS, HDFC Lif, Bajaj Finserv and Grasim.

Rangebound trade comes to an end on a positive note at 25,384. 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 a breakout point. In case of a breakout, the approximate target comes at 25,770.

BankNifty has confirmed an Inverted Head & Shoulder formation breakout; the target is 53,780. The immediate resistance is placed at 52,600 while a level of 51,700 will be considered as support.

The Auto sector is seen oscillating in a Symmetrical Triangle Formation, one should keep an eye on the sector for the pattern breakout. Corrective moves in the FMCG sector are providing an opportunity to add good quality stocks as it is in a strong uptrend.

An early indication of a bearish divergence was spotted in the IT and Pharma sectors; however, correction is likely to be short-lived, if any, as they are in a primary uptrend. The Metal sector gave a breakout from a Symmetrical Triangle Formation but with a weak candlestick pattern, we will wait for a follow-up buying before taking any action.

All bonus issues announced on or after October 1 will be made available for trading two days from the record date. As of now, the shares from such issues are available only after about two weeks from the record date.

Record date is the cutoff date that the issuer company considers to decide which shareholders are eligible for a bonus issue.

The Securities and Exchange Board of India (Sebi) has enabled T+2 trading of bonus shares where T is the record date, through a circular issued on September 16. Read More

Former New York Federal Reserve President William Dudley has called for a half-point rate cut, heightening expectations of an aggressive move by the Fed this Wednesday. Overnight, the Dow Jones hit a new all-time high, while Gift Nifty is trading above the dotted lines, though bullish sentiment may be restrained amid uncertainty over the upcoming rate cut.

Nifty is likely to trade within a range of 25,000-26,000, with 26,000 acting as a key resistance. Meanwhile, Bajaj Housing Finance surged 136% on debut, and Dixon Technologies rose 7% following a key manufacturing deal.

In terms of strategy, Nifty and Bank Nifty look set for moderate gains, while Exide Industries is a recommended buy for the week.

Indian rupee opened flat at 83.86 per dollar on Tuesday versus Wednesday's close of 83.88.

Benchmark indices are trading flat in the pre-opening session.

The Sensex was up 32.62 points or 0.04 percent at 83,021.40, and the Nifty was down 4.60 points or 0.02 percent at 25,379.20.

Supreme Infrastructure India's board of directors approved the issuance of up to 8,80,44,460 equity shares of face value of Rs 10 each of the company on a preferential basis to promoters and non-promoters.

Also, issue of up to 1,78,63,430 equity warrants i.e., fully convertible warrants, each convertible into or exchangeable at an option of Investor, within a maximum period of 18 months from the date of allotment of warrants into equivalent number of fully paid up equity share of the company.