Closing Bell: Nifty crosses 26,200 on expiry day; Sensex rises 666 pts led by auto, metals

Indian equity indices ended on solid note on September 26 with Nifty crossing 26,200 for the first time. At close, the Sensex was up 666.25 points or 0.78 percent at 85,836.12, and the Nifty was up 211.80 points or 0.81 percent at 26,216.

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.

QIB – 0.01 times

NII - 5.15 times

Retail – 9.94 times

Employee Reserved - 14.47 times

Overall – 6.14 times

QIB – 1.71 times

NII - 122.70 times

Retail – 53.12 times

Overall – 53.70 times

On the monthly expiry day, markets edged higher and gained nearly 1%, driven by favorable cues. After a flat opening, Nifty traded with a positive bias and saw significant momentum in the final hours, closing at 26,216.05, up 0.81%. All major sectors contributed to the rally, with auto, metal, and FMCG leading the charge. However, broader indices remained subdued for another session, ending mixed.

Supportive global cues and rotational buying across sectors are driving the index higher each week. Current indicators suggest this upward trend will continue, with Nifty likely to approach the 26,500 mark. While all sectors are participating in the movement, we continue to favor rate-sensitive sectors such as banking, auto, realty, and financials, and recommend selectively picking stocks from the metal and energy sectors as well.

The Nifty has broken out of consolidation on the daily timeframe, indicating increasing bullish momentum. The sentiment is expected to stay positive as the index closed above a key moving average. A drop below 26,000 might disrupt the current bullish trend, but until then, the strength is likely to persist in the index.

Winding up of positions by investors on the monthly expiry day coupled with buoyancy in Asian and European market cues triggered a sharp upsurge as both benchmark Sensex & Nifty scaled fresh highs.

Buying in banking, auto and metal stocks led the rally in benchmark indices with Sensex now inching towards the 86k mark. Falling bond yields in the US and some other developed economies coupled with stimulus announcements by China has fuelled fresh optimism in global equity markets, including India.

Nifty opened on a flat note and consolidated during the first half. A late surge helped the Nifty to close in the green up ~182 points. On the daily charts we can observe that the Nifty is heading towards the upper end of the rising channel 26560.

Divergence on the momentum indicator suggests that caution should be maintained on the longs. Until there is evidence of weakness on the price front, we shall continue to ride the uptrend with a trailing stop-loss mechanism which should be maintained with 26000.

Bank Nifty broke out of the sideways consolidation 53800 – 54300 on the upside. We expect the momentum to continue towards 55000. Support base shift higher towards 54000 – 53900.

China's recent economic stimulus announcement has greatly enhanced investor confidence, resulting in significant positive momentum in global markets, especially within Asian indices. Moreover, the market is maintaining an optimistic outlook in response to stable U.S. economic data.

Concurrently, the Indian market is reaching new highs, anticipating a strong recovery in corporate earnings for the H2FY25, fuelled by expected government expenditure. Notably, this rally is led by large-cap stocks, which are more fairly valued compared to mid and small caps, which are exhibiting signs of fatigue.

Bulls have shown their dominance in today's trade and right from the beginning, the Index was seen compounding its gains to end the monthly expiry trade at a record level of 26,216.05 with gains of 211.90 points.

All the sectors soared with Auto and Metal being the top contributors. Mid and Smallcaps underperformed the Benchmark Index.

On a daily timeframe, the Index has formed a Marubozu Open candlestick pattern which defines a strong grip of bulls. As long as the Nifty50 is above 25,970, the uptrend is intact with a probable upside of 26,450.

Indian rupee ended 4 paise lower at 83.64 per dollar on Thursday versus Wednesday's close of 83.60.

Indian equity indices ended on solid note on September 26 with Nifty crossing 26,200 for the first time.

At close, the Sensex was up 666.25 points or 0.78 percent at 85,836.12, and the Nifty was up 211.80 points or 0.81 percent at 26,216. About 1603 shares advanced, 2200 shares declined, and 102 shares unchanged.

Among sectors, metal, auto up 2 percent each, FMCG, PSU Bank indices up 1 percent each. However, capital goods index was down 0.6 percent.

BSE Midcap index ended flat, while Smallcap index was down 0.4 percent.

Maruti Suzuki, Tata Motors, Shriram Finance, Grasim Industries and M&M were among the major gainers on the Nifty, while losers were ONGC, Cipla, NTPC, Hero MotoCorp, L&T.

#1 Take more constructive view of efforts to improve quality of US filings

#2 Rising share of differentiated products to help de-risk its US sales growth long term

#3 Execution remains key for US sales pick-up

#1 There is significant potential for mining in company’s non-telco client base

#2 Telecom outlook remains uncertain

#3 Margin expansion is highly contingent on pyramid adjustment

#4 Post recent run-up, expect the stock to remain rangebound

Indian Rupee declined on strong US Dollar. US Dollar gained by more than 0.5% yesterday and clock the best day in recent times ahead of Fed Chair Jerome Powell’s speech and upbeat housing data from the US.

US new home sales were seen at 716,000 units in August vs forecast of 699,000 units. However, positive domestic markets and weak crude oil prices supported the Rupee at lower levels.

We expect Rupee to trade with a slight positive bias amid improved global risk appetite and weak tone in crude oil prices. However, a recovery in the US Dollar may cap sharp upside.

Traders may take cues from Q2 final GDP, unemployment claims, durable goods orders and pending home sales data from the US. Traders may also watch out for speeches by Fed Chair Jerome Powell and other FOMC members at various forums. USDINR spot price is expected to trade in a range of Rs 83.50 to Rs 83.90.

The company has entered into a bimco charter party with Supreme Hydro Engineering for Charter Hire of our Vessel “SEAMEC III” for working in Mumbai High Offshore Fields for carrying out jobs related to underwater inspection of FPSO.

The charter hire will be for a firm period of 20 days with option for extension on mutually agreed terms. The charter hire to commence around 10th October, 2024.

The total value for the firm period is USD 640,000 exclusive of GST.

#1 Company talking about backward integration with hospitals

#2 Healthcare business Idea is not clear for now, but seems to be aimed at revamping healthcare market

#3 Size of the planned financial commitment is not clear

#4 Plan is to fund this from the USD 650 mn of cash on balancesheet

#5 Investors bought into company story for high growth, strong business model, & its cash generation

#6 Some may look at backward integration as meaningful shift from capital-light business model

The board has reappointed SB Garware as Chairman and Managing Director of the company for a five-year term, effective November 1. Chirag Doshi has been appointed as an Independent Director, and Sarita Garware Ramsay has been reappointed as a Director.

QIB – 0.00 times

NII - 4.36 times

Retail – 8.60 times

Employee Reserved - 13.27 times

Overall – 5.29 times

#1 Company maintained that its premiumisation focus remains on track across segments

#2 Over longer-term, in fans, company believes stricter government regulation on efficiency norms will drive market

#2 Crompton believes it will benefit from stronger premiumisation push

#4 Focus on alternate channels like modern trade/e-commerce

#5 On Butterfly, management stated that restructuring is largely over

#6 Revenue growth should be visible in H2, as per the company

QIB – 1.65 times

NII - 107.17 times

Retail – 48.77 times

Overall – 48.13 times

The board has appointed Anjuly Chib Duggal as Chairperson, effective September 29. Gurcharan Das, Chairperson; Chittaranjan Dua, Independent Director; and Anil Kumar Gupta, Independent Director, will retire from the board upon the completion of their second tenure, effective September 28.

The board has appointed CS Verma as Chairman of the company, effective September 22, following the end of S K Tuteja's term on September 21.

The National Company Law Tribunal (NCLT) in Chennai has approved the merger of IDFC Financial Holding with IDFC, and the subsequent merger of IDFC into IDFC First Bank.

#Star Health has sued Telegram and a hacker for leaking policyholders' personal data via chatbots.

#Tamil Nadu court granted a temporary injunction to block such data access in India.

Zetwerk Manufacturing announced that it has secured a substantial second order from NTPC, India's largest power company. The order is for the manufacturing and supply of 1515 MWp of ALMM-compliant, Made in India solar PV modules, including mandatory spares, for the 1200 MW Khavda Solar project in the western Indian state of Gujarat.

This marks a significant milestone for Zetwerk, as this is four times larger than the previous order secured from NTPC Renewables in 2023. The company's consistent delivery of high-quality, Made-in-India solar PV modules has established it as a trusted partner for India's renewable energy sector.

We believe weak demand and cement prices coupled with negative operating leverage are likely to hit the profitability of the industry in Q2FY25. However, we expect a gradual recovery in cement demand in the upcoming quarters which should enable the industry to take some price hikes.

Bosch is currently exhibiting an ascending triangle breakout. It has consistently, over the last few weeks, held the support of its moving average. The futures are trading in a long build-up, thereby showing an increasing open interest as well as price. Technically, it is also at the verge of its 3-month accumulation breakout. Indicators like KST, MACD, and Demand Index are also positive. The first target for Bosch would be around 46,000 and if it manages to break that, we can expect the stock to reach 55,000 -  Bharat Gala, COO Equity broking, Ventura Securities

Power Mech has received an order worth of Rs 226.66 Crores (excluding GST) related to Comprehensive Operations and Maintenance (O&M) partner for Gujarat Mineral Development Corporation Limited’s 250 (2X125) MW Akrimota Thermal Power Station (ATPS), Gujarat.

QIB – 0.00 times

NII - 3.36 times

Retail – 7.07 times

Employee Reserved - 11.41 times

Overall – 4.31 times

QIB – 1.56 times

NII - 95.64 times

Retail – 45.16 times

Overall – 44.67 times

Shares of Prism Johnson surged over 15 percent on September 26 due to a spurt in volume. So far in the day, over 4 crore shares of the company changed hands on BSE and NSE combined, compared to the one-month trading volume of one crore shares.

Earlier this month, when the shares saw a similar sharp upmove, BSE sought clarification from the company regarding the unusual volume movement. Read More

A meeting of the board of directors of the company is scheduled to be held on October 1, 2024, to discuss and consider the proposal to raise funds by way of issue of equity shares, or any other eligible securities and/ or instruments, through public and/ or private offerings including qualified institutions placements, preferential issue, rights issue, further public offer or any other permissible method.

#1 Sell-down accelerate LDR resolution, but affect medium-term EPS & RoE

#2 Cut FY26-27 EPS by 2 percent

#3 Overall market for securitisation of loans is projected to be Rs 2 lakh crore in FY25

#4 Planned loan sell-downs alone can potentially be 30-35 percent of market

#5 It remains to be seen whether such large volumes can be absorbed

Carlyle Aviation Management has sold a 1.42% stake in the aviation company between September 17 and September 23, 2024, through open market transactions. As a result, Carlyle's stake has decreased from 3.75% to 2.34%.

The company's board of directors will meet on October 8 to consider a fourth interim dividend on equity shares for FY25. The record date for determining shareholder entitlement for the dividend has been set as October 16.

QIB – 0.00 times

NII - 2.83 times

Retail – 6.02 times

Employee Reserved - 9.91 times

Overall – 3.67 times

QIB – 1.54 times

NII - 93.72 times

Retail – 42.87 times

Overall – 42.23 times

The company may explore plans to enter the healthcare sector by establishing its own chain of hospitals, reports CNBC-TV18, quoting sources. With these hospitals, the company aims to tap into new levels of value creation within the healthcare ecosystem.

Promoter entities Hibiscus Trade and Investment, and Ardour Investment Holding have bought a 2.96% stake in the company. Hibiscus acquired 2.01 crore equity shares (1.27% stake) between July 30 and September 18, 2024, while Ardour purchased 2.67 crore shares (1.69% stake) between September 19 and September 23, 2024.

#1 Found most Ola Service stations overwhelmed by service requests

#2 Company is undergoing multiple initiatives to improve situation; positively, many issues seem transitory

#3 Think an improvement in service quality is required before critical launch of motorcycles

The IT services company has announced a strategic collaboration with Polestar, the Swedish electric performance car brand. The partnership will focus on Polestar's in-car infotainment development, software and electronics engineering, user experience, and cloud-powered digital services.

A wholly-owned subsidiary, Cressanda Retail Solutions has entered into an exclusive distributorship with Bharatiyam Distribution for the sale and distribution of CAMPA and associated products within the Northern Zone on Indian Railways.

The company has incorporated a subsidiary in Bangladesh, Greenlam Overseas Bengal, to operate as a distributor and wholesaler of high-pressure laminates and other paper/wood-based products.

The board has decided to reappoint Asish Kumar Chaudhuri as Chief Executive Officer (CEO) of the company for a one-year term, effective October 1.