Closing Bell: Nifty hits new high, Sensex up 74 points; IT, pharma gain

Indian equity indices ended on positive note with Nifty around 25,050 on August 28. At close, the Sensex was up 73.80 points or 0.09 percent at 81,785.56, and the Nifty was up 34.50 points or 0.14 percent at 25,052.30.

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.

Nifty opened on a flat note and hit a new all-time high of 25129.60. During the second half of the session profit booking emerged though the Nifty managed to close in the green up ~35 points. On the daily charts, we can observe that the Nifty has rallying continuously since the last nine trading sessions.

The up-move has been aided by sectoral rotation helping the Nifty to stay at elevated levels. Nifty has formed a doji candle indicating consolidation. The up-move can continue and in case of a dip towards 24920 – 24850 where the key hourly moving averages are placed are likely to act as a crucial support zone. On the upside 25200 – 25250 is the immediate hurdle zone.

The Bank Nifty traded within the range of the previous trading session and closed in the red today. The index has been underperforming on the back of subdued price action in the key heavyweights of the index. In terms of levels, 50950 – 50850 shall act as a crucial support zone while 51500 – 51600 is the immediate hurdle zone.

The Nifty continues to exhibit confusion at higher levels, as the index closed flat with wicks on both the upper and lower sides, indicating extended indecisiveness. This is highlighted by two consecutive doji-like candles following the recent rally on the daily timeframe.

A decisive move above 25,100, or a close above this level, could confirm a further rally in the market. Otherwise, Nifty may slip lower, as the absence of sustained buying might trigger selling pressure. The immediate support is placed at 24,800.

A consolidation in the US 10 year bond yield and an inflow of FIIs kept the domestic market sentiment optimistic. However, valuation remains a near-term deterrent, which will be further tested based on the upcoming India Q1 FY25 GDP data this week. On the other hand, investors are giving more emphasis to defensive bets, which is evident with the outperformance in IT and pharma stocks.

Indian equities commenced the session on a flat note but under the influence of the IT and Pharma counters, the Index moved towards the north, registering a fresh high of 25,130, although profit booking in the last session dragged the Index lower to settle at 25,052.35 with gains of 34.60 points.

As earlier indicated, IT was the top performer with gains of 1.64% followed by Pharma while the Media segment corrected the most.

At record levels, Long-Legged DOJI candlestick pattern with a probable bearish divergence in the RSI suggests loosening of the positive momentum. The same was spotted on the lower timeframe (hourly chart) as well.

A break below 24,970 will drag the Index further lower towards 24,840; while on the flip side, a firm close with a bullish candle above 25,100 is a must to continue its northward journey.

Indian rupee ended lower at 83.96 per dollar on Wednesday versus Tuesday's close of 83.92.

Indian equity indices ended on positive note with Nifty around 25,050 on August 28.

At close, the Sensex was up 73.80 points or 0.09 percent at 81,785.56, and the Nifty was up 34.50 points or 0.14 percent at 25,052.30. About 1729 shares advanced, 2049 shares declined, and 85 shares unchanged.

Biggest Nifty gainers were LTIMindtree, Wipro, Divis Labs, IndusInd Bank and Bharti Airtel, while losers were Maruti Suzuki, Nestle India, Asian Paints, Adani Enterprises and Britannia Industries.

Among sectors, IT, Pharma, and Healthcare were up more than 1 percent each, and Telecom index was ip 0.5 percent, while Media index shed 1.4 percent and FMCG and PSU Bank down 0.4 percent each.

BSE Midcap and Smallcap indices ended flat.

The company board approval of sub-division/split of 1 (One) equity share of the company having nominal/face value of Rs 10 each, into 5 (Five) equity shares of Rs 2 each (Rupee Two only), subject to approval of the Members of the company and any other regulatory authorities, if any.

State Bank of India (SBI) raised Rs. 7,500 crore today at a coupon rate of 7.42% through its first Basel III compliant Tier 2 bond issuance for the current financial year.

The bonds are issued for a tenor of 15 years, with call option after 10 years and each anniversary dates thereafter.

A2Z Infra received demand notice from the Goods and Services Tax Department (GST) for an amount of Rs 1,59,57,908 including interest and penalties.

The company has received a contract for supply of towers for a 765 kV Transmission Line from a leading Private Developer

QIB – 0.92 times

NII - 14.65 times

Retail – 3.65 times

Employee Reserved - 5.84 times

Overall – 5.28 times

Indian Rupee declined today on positive US Dollar and Dollar demand from importers. However, overnight decline in crude oil prices and FII inflows cushioned the downside. Rupee also found support on positive domestic markets after Nifty touched fresh all-time highs. US Dollar gained on month-end flows and weak corporate earnings from China.

We expect Rupee to trade with a slight positive negative bias on recovery in the US Dollar and month end dollar demand from OMCs and importers. However, rise in global risk sentiments amid dovish Fed speak and rising expectations of a rate cut by the Fed in September may support the Rupee. Traders may remain cautious ahead of US GDP and core PCE data from the US this week. USDINR spot price is expected to trade in a range of Rs 83.75 to Rs 84.20

De Beers Group, the world’s leading diamond company, and Tanishq, India’s largest jewellery retailer, have announced a long-term partnership to enhance the natural diamond market in India. With rising demand, India has now become the second-largest market for natural diamond jewellery, surpassing China and accounting for 11% of global demand. The collaboration aims to boost consumer education, confidence, and desire for natural diamonds, leveraging Tanishq’s market knowledge and De Beers’ diamond expertise. Initiatives will include staff training, consumer outreach, and a 360-degree marketing campaign to expand the customer base and engage first-time buyers. The partnership will also explore traceability and supply chain integrity, building on their existing relationship and use of De Beers' diamond verification technology.

Ahluwalia Contracts (India) has secured an order of Rs 350.35 crore from Bharat Aluminium Company Ltd (BALCO) for design and build 2 BHK apartment-756 Nos. on EPC basis at BALCO Kobra, Chhattisgarh.

#1 Zee settles disputes with Sony India; all eyes on business fundamentals now

#2 Believe the settlement with Sony India would help allay investor concerns

#3 There were concerns around potential liabilities on Zee from termination of merger

#4 The settlement will monitor any material improvement in ad revenue market

#5 Remain concerned on the potential impact of cost saving measures

#1 Management highlighted its aspiration of LTTS 3.0 – ‘go deeper to scale’ strategy

#2 Company aspires of USD 2 billion in revenue in medium term followed by USD 1 billion revenue from each segment

#3 Looking to raise margins through higher offshoring with increasing fresher mix

#4 Strong momentum in large deals, cautiously optimistic on short-term demand outlook

#5 We continue to like company’s core fundamentals

#6 Expensive valuations make the risk-reward profile unattractive

Crompton Greaves Consumer Electricals has been granted patent for an invention titled “Aerodynamic Profile”. This patent is for the term of 20 years effective from 05/04/2018.

The rights issue committee of the board of directors of the company, at its meeting held on August 28, 2024 has approved the the proposed rights issue 50,00,000 equity shares of face value of Rs 10 each, for an aggregate amount not exceeding Rs 9 crore.

Rights issue opening on September 19, 2024 and closing on October 1, 2024.

JBM Electric Vehicles announced signing a strategic agreement with LeafyBus for supplying 200 ultra-modern Electric Luxury Buses.

This collaboraƟon marks yet another step by the company towards fostering innovaƟon in green public mobility and decarbonisaƟon aligned with the company’s ESG and SDG goals.

The flexible workspace solutions company has partnered with Nyati Group for an additional 3 lakh square feet of Grade-A workspace. This alliance is the largest under the Managed Aggregation (MA) model, enhancing the company's current MA model portfolio and expanding its presence in Pune.

Subsidiary Carysil UK has agreed to acquire the remaining 30% stake in UK-based Carysil Brassware for £350,000. In April 2023, Carysil UK had acquired a 70% stake in Carysil Brassware for £1.16 million. With this acquisition, Carysil Brassware will become a 100% wholly-owned subsidiary of Carysil UK.

Gensol Engineering announced its entry into the US market with the launch of its Delaware-based subsidiary, Scorpius Trackers Inc., targeting 2,000 MW of annual supply by 2028.

The company has completed its acquisition of an additional 49% stake in its subsidiary Godrej Tyson Foods (GTFL) from Tyson India Holdings (the existing equity shareholder). With this acquisition, the company increased its total shareholding in GTFL from 51% to 100%, making GTFL a wholly-owned subsidiary of the company.

#1 Investors mostly interested in growth outlook given a slowdown in deposits, slowdown margin & impact due to regulations

#2 Management reiterated its focus on doubling the VNB over a four-year horizon

#3 HDFC Life has multiple drivers to improve growth, a catalyst for consistent stock returns

Waaree Energies, India's largest solar panel maker, is still awaiting approval from the market regulator for its IPO, eight months after filing its draft share sale papers due to concerns about non-compliance with the Companies Act, which limits unlisted companies from selling shares to more than 200 people without a public offer, people familiar with the development said.

The company filed its draft IPO papers on December 29.

The telecom operator said its Board of Directors approved the formulation, adoption, and implementation of Employee Stock Option and Performance Stock Unit Scheme 2024.

This scheme contemplates the grant of up to 34.85 crore Stock Options and Performance Stock Units, constituting 0.50% of the issued share capital of the company as of July 31, to eligible employees, subsidiaries, and associate companies. This is subject to shareholder approval.

The Sensex was up 249.07 points or 0.30 percent at 81,960.83, and the Nifty was up 83.70 points or 0.33 percent at 25,101.50.

Benchmark indices Sensex and Nifty began today's trading session with a muted tone, opening flat to slightly positive. The Nifty index is expected to remain range-bound between 24,950 and 25,100 for the day. A breakout from this range could pave the way for a new directional trend.

For Bank Nifty, in the previous session, NBFC stocks captured market attention with notable positive momentum, however, select banking stocks lagged in comparison. For today's expiry, it is critical for the Bank Nifty to maintain its position above the 51,300 mark to potentially ignite a short-covering rally. On the downside, the 51,000 level is anticipated to offer robust support.

Overall, the market appears to be in a consolidation phase characterized by low volatility and this trend is likely to continue in the near-term.

The Board of Directors of the company will meet on August 31 to consider the issue of bonus shares to the equity shareholders of the company.

The technology services and consulting company has expanded its collaboration with Dell Technologies to bring the Dell AI Factory to Wipro’s Enterprise AI-Ready platform.

The collaboration will allow enhanced cost control and risk mitigation while providing enterprises with access to best-in-class technology, accelerating the adoption of AI across cloud, data center, and edge environments.

Advait Infratech has received an order for setting up manufacturing capacities of 200 MW of Alkaline Electrolysers in India under strategic interventions for Green Hydrogen Transition (SIGHT) Scheme (Tranche -1I) by Solar Energy Corporation of India (SECI).

The company has entered into a strategic collaboration with the House of Beauty, through which Max Factor, the iconic Hollywood makeup brand, has entered the brick-and-mortar retail sector in India and will expand its presence in India to 70 Shoppers Stop outlets by the end of the year.

The company said its Board of Directors approved the issuance of 48 lakh fully convertible warrants for cash at an issue price of Rs 335 per warrant, amounting to Rs 160.8 crore.

The Board has accorded it approval to execute the new license agreement between the Company and Conagra Foods RDM, LLC

Artificial intelligence subsidiary Phronetic.AI launched a new women's safety feature in its AI Facility Manager solution for CCTVs

#1 Believe that recent stock correction presents a buying opportunity

#2 Strong US pipeline & improved growth prospects in India should lead to elevated sales & margin

#3 High reliance on US makes company a high-risk, high-reward call due to nature of US generics industry

Astonea Labs plans India IPO with fresh issue of 2.79 million shares and plans to list on SME platform of BSE

#1 Management spelt out its aspiration of achieving a revenue run rate of USD 2 billion, EBIT margin of 17-18 percent over medium-term

#2 Growth drivers remain intact for key verticals across the ER&D client universe

#3 LTTS has carved out three new verticals to alter its go-to-market (GTM) strategy

#4 GTM strategy now focuses extensively on high-growth areas such as mobility, sustainability

The Board of Directors of the company will meet on August 31 to consider the issue of bonus shares to the equity shareholders of the company.

Dinesh Khara, Chairman and Non-executive Director, has resigned from the directorship of the company, effective August 27.

The pharma company has received final approval from the United States Food and Drug Administration (USFDA) to market Amantadine extended-release capsules, 68.5 mg, and tentative approval for 137 mg. Amantadine extended-release capsules are used for the treatment of dyskinesia in patients with Parkinson’s disease. This approval makes Zydus eligible for 180 days of exclusivity for Amantadine extended-release capsules, 68.5 mg.

The company has received an order from the Deputy Commissioner of State Tax, Maharashtra State, demanding GST, interest, and penalty of Rs 429.05 crore for FY20.

#1 Target raises to Rs 6200 vs Rs 5500

#2 Expect recovery in dollar Revenue growth

#3 See FY24 /FY25/FY26 dollar revenue growth at 4.4%/6.5%/11%

#4 Dollar revenue to improve on the back of recovery in 2 impacted verticals – BFSI and Hitech

#5 Recovery in tech spending is on the cards for BFS, especially in the US, where LTIM will be a key beneficiary

#6 Leadership departures have cooled off in the past 3-4 months after a flurry of exits in March-April

#7 Weak scope for EBIT margin expansion in FY2025

#8 Expect LTIM to be a good compounding play with a strong and consistent EPS growth trajectory

#9 Raise target multiple to 28x vs 26x

The company has received a letter from the Registrar of Companies, Maharashtra. RoC has instructed the company to keep its Register of Directors and Key Managerial Personnel updated.

The company has been declared the lowest bidder in a highway cum bridge project with a bid project cost of Rs 380 crore from NHAI. The project involves the construction of an additional 3-lane bridge over the river Ganga for a connection between Buxar and Bharauli on NH-922 in Uttar Pradesh and Bihar on Hybrid Annuity Mode.

Orient Technologies, the seasoned IT solutions provider, made a strong debut on the stock market, listing at Rs 302 per share. This translates to a significant 46.8% gain over its issue price of Rs 206, underscoring the positive investor sentiment surrounding the company.

The substantial oversubscription and impressive listing gain demonstrate strong investor confidence in Orient Technologies' future prospects. The company's long track record and diverse clientele solidify its market position. Consistent financial growth and a healthy balance sheet further enhance investor appeal.

Orient Technologies' listing is a testament to its strong fundamentals and positive market outlook. However, investors should remain cautious about potential challenges such as industry competition and reliance on key clients. Investors are advised to keep holding their shares with a stop - loss at 270.

Subsidiary UPL Corporation, through its step-down subsidiary UPL Global, acquired a 20% stake in PT Excel Meg Indo, Indonesia, for $6.85 million. Post-acquisition, UPL Global will hold 99.9998% stake in PT Excel, while another arm, UPL Europe, will hold 0.0002%.

Subsidiary Jio Leasing Services has invested Rs 67.50 crore by subscribing to 6.75 lakh, 8.1% cumulative optionally convertible preference shares of Rs 10 each in Reliance International Leasing IFSC (RILIL).

RILIL is a 50:50 joint venture between Jio Leasing Services and Reliance Strategic Business Ventures (a wholly owned subsidiary of Reliance Industries).

The investment is made to fund the business operations of RILIL. Additionally, Jio Financial increased its shareholding in Jio Payments Bank from 78.95% to 82.17% by subscribing to 6.8 crore equity shares of Rs 10 each in Jio Payments Bank for Rs 68 crore for its business purposes.