Closing Bell: Sensex, Nifty end flat; power, metal shine, PSU Bank, FMCG drag

Indian equity indices ended on a flat note in the volatile session on September 24 after Nifty crossing 26,000 for the first time. At close, the Sensex was down 14.57 points or 0.02 percent at 84,914.04, and the Nifty was up 1.40 points or 0.01 percent at 25,940.40.

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.

Although markets ended on a lacklustre note after a volatile session, key benchmark indices hit new milestones signifying that liquidity flows has remained strong as investors are confident of India's long term growth story.

Domestic benchmarks are attempting sustain new highs, driven by the US Fed’s aggressive rate cut. Meanwhile, the Chinese central bank’s rate cut, and additional stimulus measures have positively influenced global investor sentiment, resulting in gains for domestic metal stocks. Conversely, FMCG and banking stocks exhibited declines due to profit-booking at higher levels. In the near term, strong inflows from FIIs, driven by the US Fed’s dovish outlook and expectations of a rate cut by the RBI in October, are expected to maintain momentum.

Markets traded in a subdued manner, closing nearly unchanged after a recent rally. Following a flat opening, Nifty moved within a narrow range for most of the session but briefly tested a new milestone of 26,000. Sector-wise, metals, energy, and IT posted decent gains, while FMCG and financials saw profit booking. Broader indices followed a mixed trend, leading to a flat market breadth.

We maintain a consolidation view but with a positive bias, driven by rotational buying in heavyweights. Focus on stock selection and use dips to accumulate quality stocks, as Nifty holds strong support around 25,600-25,800 zone.

The markets witnessed both bullish and bearish activity in today's trade as after a muted opening, the Index corrected a bit and oscillated in a thin range before the IT counters supporting the Index to surpass the psychological barrier of 26,000; however, towards the end of the session, wiped-off majority of its gains to settle at 25,940.40.

Among the sectors, Metal was the top gainer followed by IT and Auto while PSU Banking was the major laggard. The diverging trend was seen in the Broader markets where Midcaps outperformed the Frontline Index while Smallcaps ended the session in red.

A Spinning Top candlestick pattern was formed at record levels which indicates indecisiveness between the bulls and bears. A strong move above 26,000 will open doors for 26,100 while on the lower side, the zone of 25,800-25,850 will serve as a strong support area.

The Nifty traded within a narrow range today, taking a breather after a three-day rally. The short-term sentiment remains positive, with the index staying above the critical 21-day EMA, supported by a bullish crossover in the daily RSI.

However, for the rally to continue, the Nifty must decisively break above the 26,000 level. Until then, we expect range-bound movement, with the index fluctuating between 25,800 and 26,000 over the next few hours to a few days.

Indian rupee ended 12 paise lower at 83.67 per dollar on Tuesday against Monday's close of 83.55.

Indian equity indices ended on a flat note in the volatile session on September 24 after Nifty crossing 26,000 for the first time.

At close, the Sensex was down 14.57 points or 0.02 percent at 84,914.04, and the Nifty was up 1.40 points or 0.01 percent at 25,940.40. About 1871 shares advanced, 1946 shares declined, and 84 shares unchanged.

Biggest Nifty gainers were Tata Steel, Hindalco Industries, Power Grid Corp, Tech Mahindra and Adani Enterprises, while losers included SBI Life Insurance, HUL, Grasim Industries, UltraTech Cement and Shriram Finance.

On the sectoral front, metal index up 3 percent, oil & gas index up 0.6 percent, Power index rose 1.4 percent. On the other hand, PSU Bank, FMCG and Telecom were down 0.5-1 percent.

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

QIB – 3.53 times

NII – 130.67 times

Retail – 61.12 times

Overall – 59.57 times

#1 Think Kalyan is midway into its value-creation journey driven by aggressive network rollout

#2 Continued exponential growth will act as a key catalyst in our view

#1 Numerous optionality prop up bull case target to Rs 205

#2 Core thermal assets (1,650 MW) are nearing optimal performance on coal tie-ups

#3 PPAS of 90 percent capacity, improving debt metrics

#4 Incremental smart meter contracts, monetisation, & disputes settlement provide optional value

#1 RBI lifted gold loan business restrictions, normalisation of business is a strong tailwind

#2 Upgrade FY25-27 EPS estimates by 6-16 percent

#3 Stock is up 65-70 percent from March 2024 lows

#4 Current valuations price in most positives

The company has received approval to import, sell, and distribute Durvalumab Solution for infusion (Imfinzi) from the Central Drugs Standard Control Organisation, Directorate General of Health Services, Government of India. Durvalumab is used to treat adults with biliary tract cancer (BTC).

Spot gold, after rising 0.30% yesterday, is trading steady at $2,629 currently. The metal was up yesterday on disappointing manufacturing PMI data out of the US, though services PMI data topped the forecast. S&P Global US manufacturing PMI (September preliminary) came in at 47 Vs the forecast of 48.60, while S&P Global US Services PMI (September preliminary) was noted at 55.40 Vs the estimate of 55.20.

Today, the US Dollar index is slightly weaker at 100.80 as the China’s Central Bank slashed 7-day report rate by 0.20% to 1.5% and reserve requirement ratio by 0.50%. Gold is expected to range trade between $2,600 and $2,650 as the US 10-year yields are firmer. Dip buying is preferred with a major near term upside target of $2,700.

#1 Downgrade to Underperform from Outperform, target cut to Rs 260/sh from Rs 550/sh

#2 Recently disclosed higher credit costs for Q2 indicates that collection efficiency has not improved

#3 Collection efficiency had dipped at end of Q1 and indicates it has not improved in past 2 months

#4 Co undergoing multiple process and leadership changes

Shares of JTL Industries Ltd jumped 8 percent on September 24 after the company informed the exchanges that a meeting of the board of directors is set to take place on October 3 to consider split of shares, issue of bonus shares.

The company said the board will consider split of equity shares of the company having a face value of Rs 2 each. It will also consider the proposal to issue bonus shares to the company's equity shareholders and increase the authorised share capital of the company.

Moreover, consequent alteration of memorandum of association of the company will be considered by the board and any other item with the permission of the chairman, the firm’s statement said.

The company has emerged as the lowest bidder for a project worth Rs 903.53 crore from Maharashtra Metro Rail Corporation, Nagpur. The project involves the design and construction of an elevated metro viaduct.

The board has approved the re-designation and appointment of Virendra Bhandari as Managing Director and Chairman of the company, along with the appointment of Akshay Bhandari as an additional Whole Time Director for five years, effective September 23.

IPO Check | Manba Finance IPO Subscribed at 50.69 times

QIB – 3.41 times

NII – 114.79 times

Retail – 56.05 times

Overall – 53.60 times

QIB – 3.06 times

NII - 108.21 times

Retail – 53.25 times

Overall – 50.69 times

Listing of Northern Arc Capital was slightly below street expectation despite receiving healthy subscription response, as the market sentiment has been subdued since the opening trades.

Post listing, we continue to believe that investors should continue to HOLD because of an opportunity to hold stake in a diversified financial services platform dedicated to addressing the retail credit needs of under-served households and businesses in India.

Northern Arc Capital share is well-positioned for a sustained growth in the long term with company's strong sectoral focus on MSME, microfinance, and consumer finance. Hence, we believe the market could give Northern Arc Capital a premium multiple for its leadership position which may result in the company delivering a healthy post listing.

Medicamen Organics has signed a Memorandum of Understanding (MOU) with Vaibhav Kashinath Chaudhari (VKC) and Mistycube Analytics (MA) to establish Grande Etoile Pharmaceuticals Ltd. (GEPL).

A meeting of the board of directors of the company is scheduled to be held on Thursday, 3rd October 2024, to consider and approve the sub-division/split of equity shares of the company having a face value of Rs 2 each shall be in such manner as the board may decide and the proposal to issue bonus shares to the company's equity shareholders.

Despite escalating geopolitical concerns in the Middle East, the Indian stock market remains resilient, with the Sensex and Nifty achieving new record highs for the fourth consecutive session today.

The Nifty is expected to trade near the 26,000 level, with potential to reach 26,200. The 26,000 Call strike has significant open interest (OI) of around 67 lakh shares, while the 25,700 Put strike has an OI of approximately 60 lakh shares.

In the Bank Nifty, broad-based buying has been observed, with a projected move toward 54,500 and immediate support at 53,500. Fresh long positions may be considered on any pullback.

Shares of Punjab National Bank dropped 2.5 percent in trade after the company launched a Qualified Institutional Placement (QIP) where it offered shares at a discount to its current market price.

The PSU lender set a floor price of Rs 109.16 per share for its QIP program, launched on September 23. This price reflects a 2 percent discount from the closing market price of PNB shares, which stood at Rs 111.49 apiece on the same date. Read More

The Chennai Metropolitan Water Supply & Sewage Board has terminated a contract worth Rs 440 crore with BGR due to delays in project execution and poor quality of RO water. BGR Energy noted that the termination will reduce its turnover and profit to the extent of the pending contracts, with no other material impact on its financials, operations, or other activities.

Shares of Mankind Pharma continued to rise for the fourth straight session and hit a fresh record high of Rs 2,709.95 on September 24. With today's gains, the stock has charted a near 12 percent upmove in four sessions. Read More

The board has approved the re-appointment of Shahid Balwa as Vice Chairman and Managing Director of the company for three years, effective December 10, 2024.

The board has approved the issuance of up to 46.2 crore equity shares and/or warrants convertible into equity shares at an issue price of Rs 33 per share, aggregating Rs 1,524.60 crore, through a preferential allotment.

Shares of GMR Power and Urban Infra hit 5 percent upper circuit to touch new lifetime high of Rs 156 per share on September 24 after Emkay Global initiated a 'buy' call on the counter and set target price at Rs 180 per share. The target implies an upside of 15 percent from current levels as analysts cite strong earnings visibility and attractive valuations.

So far this year, shares of GMR Power more than doubled investors' wealth or soared over 177 percent, beating benchmark Nifty 50's 19 percent surge. Read More

#1 Company expects subscriber churn to reduce from Q4 onwards since capex rollout is expected to commence from Q3

#2 Debt fundraising of Rs 35,000 crore to conclude in 7-8 weeks

#3 Another tariff hike of 20 percent is expected next year

#4 Company expects equity conversion to commence once moratorium ends

On the daily chart, Hindustan Copper has given a breakout from a Symmetrical Triangle Formation which was confirmed with a long-term trendline breakout in the leading oscillator RSI.

The trend following indicator MACD has already given a positive crossover which has further boosted the outlook for the counter.

As per the pattern breakout, the approximate target comes to Rs 399.

The company has been declared the successful bidder to establish an inter-state transmission system in Gujarat and has received the Letter of Intent. The project involves the installation of STATCOMs at Khavda Pooling Station 1 and Khavda Pooling Station 3, along with associated bay extension work in Gujarat.

The RP-Sanjiv Goenka Group company's subsidiary, Firstsource Solutions UK, has executed a share purchase agreement for the acquisition of 100% ownership of Ascensos, UK, for GBP 42 million.

Shares of Sealmatic India surged over 6 percent on September 24 after the company bagged an order from Bharat Heavy Electricals. The order is for engineered mechanical seals for super critical power plant for the DVC Raghunathpur Thermal Power Station Phase. Sealmatic is the only approved vendor for such super-critical applications for the 660 MW power plants at BHEL, other than a few foreign vendors. READ MORE

ZOYA Gin, ICONiQ, SrishƟ and X&O Whiskies win major awards at ISC, IWC, ISWA, and Monde SelecƟon

A board meeting will be held on September 26 to consider raising funds through the issuance of equity shares or bonds.

#1 Network equipment deal of Rs 30,000 crore underscores that investment plans remain unaffected

#2 Company highlighted that it is now engaging directly with governmen’t to find resolution to AGR issue

#3 VI also expects to complete its pending bank debt raise in the next 7-8 weeks

#4 Company is hopeful of another tariff hike in 15 months

The Power Transmission & Distribution (PT&D) vertical of Larsen & Toubro has won new orders in the Middle East for expanding and strengthening the electricity grids at high voltage levels.

Zydus Wellness Products, a wholly owned subsidiary of Zydus Wellness, has received an Assessment Order from the Excise and Taxation Officer cum notified authority, U.T, Chandigarh, under section 29(2) of The Punjab VAT Act, 2005 and The CST Act, 1956 alleging demand of Rs 0.31 million towards VAT (including penalty of Rs 0.16 million) and Rs 2.78 million towards CST, aggregating to Rs 3.09 million for FY 2014-15.

#1 Recently disclosed higher credit costs for Q2 indicates that collection efficiency has not improved

#2 Collection efficiency had dipped at end of Q1 & indicates it has not improved in past 2 months

#3 Company undergoing multiple process & leadership changes