Closing Bell: Nifty above 19,600, Sensex up 320 pts; metal, pharma gain 2% each

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities:

The Bank Nifty saw a resurgence in bullish momentum as the bulls successfully defended the key support level at 44,200. However, challenges persist as the 20-day moving average (20DMA) at 45,000 continues to act as a strong resistance. The index appears to be consolidating within a range, with levels of 44,200 on the downside and 45,000 on the upside defining this range.

A decisive break on either side of this range will likely trigger fresh trending moves. In particular, the support at 44,200 is crucial and could determine the index's near-term direction.

Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities:

On the first day of the October series, Indian markets started strong and continued to build on the gains through the session, barring last 45 minutes of trade, where Nifty witnessed minor profit booking and fell more than 100 points from day’s high of 19726. Nifty ended the week with 0.18% fall, to close at 19638.

Asian equities gained, led by a rally in Hong Kong on hopes that China’s Golden Week holiday will spur a consumption revival and boost sentiment marred by the country’s property sector crisis.

Smaller stocks represented by Nifty Mid and small cap 100 Index outperformed the Nifty where they gained 1.08% and 0.99% respectively as against 0.59% rise in the Nifty. Advancing shares outnumbered the declining shares as advance decline ratio stood at 1.85 levels on BSE, highest since 14-September. Cash market volumes were lower as compared to recent averages.

All the sectoral Indices ended in the green except Nifty IT. IT stocks were impacted as Accenture, the IT services giant reported its Q4 revenue numbers within its targeted range but fell short of estimates. The company forecasted the first-quarter revenue below the Wall Street targets signaling that high inflation and interest rates pressures will hurt demand through next year.

Amongst the sectors, Nifty Pharma, Healthcare, Media and Nifty PSU Banks were major gainers.

Nifty has been finding support near its 50 days EMA for last three consecutive sessions. Any level above 19767 would confirm the bullish trend reversal, while level below 19492 would resume the down trend in the Nifty.

Rupak De, Senior Technical analyst at LKP Securities:

Nifty ended the month of September with gains, following a weak August closing. The recent selling pressure was halted around the 50EMA. However, we need to close above 19,750 to witness a decent rally over the short term. A close or sustained move above 19,750 might take Nifty on a ride towards 20,500-20,700. On the flip side, a fall below 19,470 might trigger the resumption of the downtrend.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:

The Nifty opened gap up today and traded with a positive bias to close the day with gains of ~114 points. On the daily charts we can observe that the Nifty has not witnessed follow-through selling pressure from the previous trading session. In fact, it managed to close above 19600 zone which is a positive sign. On the hourly charts we can observe an Impulse i.e. a five-wave advance which helps us to assume that the low of 19492 is a short-term bottom in place.

The positive divergence and crossover on the hourly time frame also suggests that the probability of a pullback is high. Thus, both price and momentum indicator suggest that there can be a positive momentum over the next few trading sessions. In terms of levels, 19500 – 19480 is the crucial support zone while 19780 – 19840 shall act as an immediate hurdle zone.

Bank Nifty also witnessed a pullback and as a result it managed to close around the 20 week moving average (44584) which is a positive sign. We believe that the Bank Nifty is witnessing loss of momentum on the downside which is evident from the positive divergence on the hourly time frame. On the upside we expect a pullback towards 45000 – 45200 zone from short term perspective.

Dilip Parmar, Research Analyst, HDFC Securities:

The Indian rupee appreciated in line with Asian currencies as the dollar index along with US bond yields corrected in the last two days. The rally in the domestic equities and the expectation of dollar inflows in the debt market bodes well for the rupee. Despite strong US data, the dollar has entered a corrective phase, probably due to quarter-end flows and a fall in the yields.

Spot USDINR is expected to trade between 83.30 and 82.80 with a negative bias ahead of the RBI monetary policy decision next week.

Gaurang Shah, Senior Vice President at Geojit Financial Services.

We remain positive on the Cement sector. Our view is that the consumption extent is likely to go up steadily over the next couple of quarters. The reason being governments spending on infrastructure, state levels spending on infrastructure, recovery in real estate sector and spending on Capex by corporate India.

We are also of the opinion that the input cost which was constant last financial year has eased off a little bit and profit margins should improve going forward from here on. Prices of cement bags have also moved up north a little bit and they might move up in future also.

In the Large cap we like ACC, Ultra tech, Ambuja & Grasim. And in the Mid cap, we are positive on Ramco Cement, JK Laxmi Cement, Dalmia Bharat, Birla Corp and Shree Cement.

Vinod Nair, Head of Research at Geojit Financial Services:

The Indian market witnessed a rebound as positive GDP data from Britain instilled confidence among its global peers. However, the market is facing stiff resistance at higher levels due to insipid liquidity and a lack of triggers to overcome the bears.

The upside risk to domestic inflation may recede with the return of a good monsoon in September. This, in turn, could provide the RBI with leeway to maintain a pause in the upcoming policy meeting next week.

Ajit Mishra, SVP - Technical Research, Religare Broking:

Markets made a recovery attempt after Thursday’s fall and managed to close half a percent higher. The tone was positive for most of the session however dip in the final hour trimmed the gains. Consequently, Nifty settled at 19638.30 levels; up by 0.59%. Among the key sectors, pharma and metal were in the limelight while IT traded subdued. Besides, the buoyancy on the broader front kept the traders busy.

Though the pace of decline has softened, the tone is still negative and we don’t see that change until Nifty decisively reclaims 19750. Meanwhile, a mixed trend on the sectoral front is offering opportunities on both sides, so traders should continue with stock-specific trading approach.

Rupee Close:

Indian rupee ended 14 paise higher at 83.04 per dollar versus previous close of 83.18.

Market Close:

Benchmark indices ended higher on September 29 with Nifty above 19,600.

At close, the Sensex was up 320.09 points or 0.49 percent at 65,828.41, and the Nifty was up 114.80 points or 0.59 percent at 19,638.30. About 2246 shares advanced, 1256 shares declined, and 152 shares unchanged.

Major gainers on the Nifty included Hindalco Industries, NTPC, Hero MotoCorp, Dr Reddy's Laboratories and Divis Lab, while losers were Adani Enterprises, LTIMindtree, HCL Technologies, Tech Mahindra and Powr Grid.

Except Information Technology, all other sectoral indices ended in the green with metal, power, oil & gas, PSU Bank and healthcare indices up 1-2.7 percent.

BSE Midcap index rose 1.3 percent and BSE Smallcap index up 0.6 percent.

Stock Market LIVE Updates | CLSA View On Maruti Suzuki

-Sell call, target raised to Rs 9,417
-Momentum is unlikely to sustain in FY25-26 as competition scales up its launches
-EV launches will drag margin of PV OEMs
-Extrapolating current level of high margin in FY25 & FY26 is too optimistic
-Companies launch share in SUV segment will decline to low single-digits in FY25 & FY26
-Industry supply constraints are in the past now

Stock Market LIVE Updates | Morgan Stanley View On Navin Fluorine 

-Overweight call, target Rs 4,951 per share
-Announces resignation of Radhesh Welling as MD & Director w.e.f Dec 15
-Executive Chairman Vishad Mafatlal will take over till co appoints a new MD
-Welling will aid in transition in interim
-Expect to hear more from company on plans to tackle top management attrition

Stock Market LIVE Updates | Jefferies View On Larsen & Toubro

-Buy call, target Rs 3,060 per share
-L&T has announced 44 percent of our expected quarter announcements till now Q2
-Expect Rs 62,300 crore order flow in Q2 (20 percent YoY Growth)
-Rs 13,900 crore worth of is announcements are needed assuming 60 percent are unannounced orders
-H1FY24 should see order flow on account of election
-H2 should benefit from margin recovery

Sesnex Today | Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas:

Indian Rupee strengthened on Friday on weak US Dollar index and a decline in crude oil prices. Positive tone in domestic markets also strengthened the Rupee. However, FII outflows capped sharp gains. US Dollar declined on Thursday on concerns over looming US Government shutdown fears. Disappointing economic data from US also weighed on the greenback.

Pending home sales and Final GDP missed forecast. Weekly unemployment claims increased to 204,000 as compared to 202,000 in the previous week but was lower than forecast of 214,000.

We expect Rupee to trade with a slight positive bias on as US Government shutdown worries may keep the Dollar pressure. Recovery in global markets may also support the local currency.

However, expectations of recovery in crude oil prices and selling pressure from foreign investors may weigh on Rupee. Traders may remain cautious ahead of core PCE deflator, goods trade balance and personal income data from US. Traders may also take cues from India’s fiscal deficit data. USDINR spot price is expected to trade in a range of Rs 82.70 to Rs 83.40.

Sensex Today | BSE Healthcare Index up 1 percent led by Glenmark Pharma, JB Chemicals, Panacea Biotec

Stock Market LIVE Updates | Jefferies View On Cholamandalam Investment and Finance Company

-Buy rating, target Rs 1,350 per share
-Launched equity issuance through QIP of up to Rs 2,000 crore
-CCDs will be convertible at 15/16.5 percent discount to average share price during September 25-26
-Equity fund raise & CCD should be 7-9 percent BV accretive & a tad bit EPS dilutive
-RoE can fall slightly to 20-21 percent over FY24-25
-At Rs 2,000 crore capital raise (14 percent of BV), BVPS may rise by 7-9 percent over FY24-25
-RoE may fall marginally to 20-21 percent over FY24-25

Sensex Today | Market at 3 PM

The Sensex was up 431.63 points or 0.66 percent at 65,939.95, and the Nifty was up 145.40 points or 0.74 percent at 19,668.90. About 2053 shares advanced, 1007 shares declined, and 102 shares unchanged.

Sensex Today | Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:

Both Nifty and Sensex were flat in the past week. BSE Midcap Index gained around 0.9% while BSE SmallCap Index gained 1.97%. Macro sentiments remained volatile as frailties in European and US amid rising crude oil prices and US bond yields. Crude surged 15% in the past month and is trading around USD 97.8/bbl, whereas the US 10-y treasury yield rose 37 points in the past month to 4.57%.

Indian equity markets remained concerned about slowdown, higher interest rates and valuation. Major sectors were flat on a week-on week basis with Nifty Finance, Nifty Pharma, Energy, Reality and Metals gaining the most. While key sectors that lost were Nifty IT, FMCG, Autos and Media.

Within the Nifty Index, Bajaj Finance (+4.4%), Coal India (+4.2%) and L&T (+4.1%) gained the most, while Tech Mahindra (-5.9%), LTI Mindtree (-4.03%) and Infosys (-3.9%) lost the most.

FPIs were net sellers, while DIIs were net buyers in the same period. On the economy front, JPMorgan announced that it will include Indian government bonds in its emerging market debt index. 1QFY24 CAD widened to USD 9.2 billion (1.1% of GDP) compared to USD 1.4 billion in Q4FY23.

In International news, Yields in the U.S. Treasurys pulled back slightly. At 4.589%, the 10-year yield’s still the highest it’s been in decades. Likewise, oil prices retreated, giving investors and the broader economy a slight reprieve. US West Texas Intermediate futures fell 2.1% to settle at $91.71 while Brent dropped 1.21% to $95.38.

In Europe, the Bank of England and Swiss National Bank held interest rates steady this month, while the European Central Bank opted for a “dovish hike” and Sweden and Norway’s central banks indicated just one more increase may be ahead. While in Asia, China’s retail spending, property prices and loan growth were all weaker in September than the month before, according to the China Beige Book survey released Friday.

Stock Market LIVE Updates | Tata Power's rating upgraded by Moody's with stable outlook

Moody's has upgraded Tata Power's corporate family rating to Ba1 from Ba2 with a stable outlook. This reflects confidence in Tata Power's stability for the next 12-18 months. An additional upgrade may occur if the company's standalone credit quality improves, maintaining a CFO pre-WC/debt ratio above 13%, Moody's said.

Stock Market LIVE Updates | Lupin's Nagpur unit-1 facility gets positive EIR from US FDA

Lupin announced that its Nagpur Unit-1 manufacturing facility, producing oral solid dosage forms, has received an Establishment Inspection Report (EIR) from the U.S. FDA. The EIR was granted following the facility's inspection in July 2023. The U.S. FDA has categorized the facility as Voluntary Action Indicated (VAI).

Foreigner institutional investors are set to end their longest monthly buying streak in India stocks that we have witnessed in two and a half years. A surge in oil prices has dampened the outlook for equities, which saw record highs earlier this month.

Stock Market LIVE Updates | Prabhudas Lilladher View on Hindustan Aeronautics 

Prabhudas Lilladher initiate coverage on Hindustan Aeronautics (HAL) with a ‘BUY rating at a target price of Rs 2,266 (weighted average of prices using DCF & PE multiple).

The company is a play on the growing strength & modernization of India’s air defence given 1) its position as the primary supplier of India’s military aircraft, 2) long-term sustainable demand opportunity, owing to the government’s push on procurement of indigenous defence aircraft, 3) leap in HAL’s technological capabilities due to development of more advanced platforms (Tejas, AMCA, etc.), 4) robust order book of Rs 818 billion with further 5-year pipeline of ~Rs2trn, and 5) improvement in profitability through scale and operating leverage.

Broking house estimate Revenue/Adj. PAT CAGR of 11.0%/14.2% over FY23-26E. The stock is currently trading at a P/E of 20.8x/18.3x on FY25/26E earnings.

Stock Market LIVE Updates | Zydus Lifesciences gets CDSCO clearance to initiate the phase I clinical study of Its Novel PCSK9 Inhibitor

Zydus Lifesciences has received permission from CDSCO, India to initiate the Phase I clinical study of its novel PCSK9 inhibitor. The Phase I prospective randomised, double-blind, placebo-controlled study will study the safety and tolerability of anti-PCSK9 product administered subcutaneously in healthy human volunteers.

Stock Market LIVE Updates | MAS Financial Services appoints Riddhi Bhayani as Chief Compliance Officer

Riddhi Bhayani is appointed as Chief Compliance Officer of MAS Financial Services, with effect from September 28.

MAS Financial Services was quoting at Rs 894.40, down Rs 6.20, or 0.69 percent.

Stock Market LIVE Updates | RBI approves proposal for International Finance Corporation (IFC) to acquire up to 9.7% stake in Federal Bank

The Federal Bank has received an intimation from the Reserve Bank of India on September 28, 2023, that it has accorded its approval to International Finance Corporation (IFC) for acquiring aggregate holding of up to 9.70% of the paid-up share capital or voting rights of the bank subject to the conditions specified therein.

Stock Market LIVE Updates | Hindustan Zinc committee of directors to evaluate corporate restructuring

The Board of Directors of Hindustan Zinc decided that considering the scale, nature, and potential opportunities for various business verticals of the Company, the Company should undertake a comprehensive review of its corporate structure for unlocking potential value.

Stock Market LIVE Updates | Uno Minda to increase stake in joint venture with Westport to 76% to accelerate growth in growing CNG and other alternate fuel market

Uno Minda has received board approval to increase stake in Minda Westport Technologies (MWTL) from 50% to 76% by acquiring additional 26% stake from its joint venture partner Westport Fuel Systems Italia S.r.l. (Westport). The cost of acquisition for 26% stake is Rs 14.81 crore. The acquisition of shares is targeted to be completed by March 31, 2024. MWTL is one of the leading manufacturers of alternate fuel systems — CNG and LPG components and kits for OEMs and aftermarket in India.

Stock Market LIVE Update | Hind Zinc surges 6% on plans to evaluate corporate restructuring

Shares of Hindustan Zinc surged over 6 percent on September 29 after the company announced that its committee of directors was looking to evaluate corporate restructuring plans.

The idea behind the restructuring is to create separate entities for zinc, lead, silver and recycling businesses. For the same, the company will appoint external advisers to evaluate restructuring.

Following the news, shares of Vedanta, the company that holds a 65 percent stake in Hindustan Zinc, also soarednearly 7 percent.

Stock Market LIVE Updates | NLC India to set up 3x800 MW coal based thermal power project in Odisha

NLC India is setting up 3x800 MW coal based thermal power project at Jharsuguda and Sambalpur districts in Odisha. It has entered into a long term power purchase agreement (PPA) with GRIDCO for 400 MW. With this, the entire power of 2,400 MW has been tied up on long term basis with Tamilnadu- TANGEDCO (1,500 MW), Puducherry- PED (100 MW), Kerala- KSEBL (400 MW) and Odisha- GRIDCO (400 MW).

Stock Market LIVE Updates | Infosys gets Rs 26.5 lakh IGST demand order notice, along with penalty & interest of over Rs 11 lakh

Infosys has received IGST demand order notice for Rs 26.5 lakh, along with interest and penalty of more than Rs 11 lakh, due to non-receipt of foreign inward remittance of export proceeds for the period between October 2021 – November 2021. There is no material impact on financials, operations or other activities of the company.

Stock Market LIVE Updates | Dr Reddy’s Laboratories incorporates wholly-owned subsidiary in Jamaica

Dr Reddy’s Laboratories' subsidiary Dr Reddy’s Laboratories SA, in Switzerland, has incorporated a wholly-owned subsidiary in Jamaica, - Dr Reddy’s Laboratories Jamaica. Accordingly, Dr Reddy’s Laboratories Jamaica, a step-down wholly-owned subsidiary of the company, will be engaged in importation, warehousing, distribution and exportation of pharmaceuticals.

Sensex Today | Market at 1 PM

The Sensex was up 429.83 points or 0.66 percent at 65,938.15, and the Nifty was up 144.30 points or 0.74 percent at 19,667.80. About 1998 shares advanced, 1002 shares declined, and 110 shares unchanged.

Sensex Today | CJ Darcl Logistics to raise funds via IPO, files draft papers with SEBI

CJ Darcl Logistics Limited, a diversified logistics company in India, filed draft papers with capital market regulator to raise funds via initial public offerings.

The IPO comprises a fresh issue of Rs 340 crore and an offer for sale of up to 54.31 lakh shares by its existing shareholders and promoters.

The OFS consists of up to 3.69 lakh shares by Krishan Kumar Agarwal, up to 2.03 lakh shares by Roshan Lal Agarwal, up to 2.31 lakh shares by Narender Kumar Agarwal, up to 5.78 lakh shares by Vineet Aggarwal, up to 5.3 lakh shares by Sushma Agarwal, up to 4.47 lakh shares by Puneet Agarwal, upto 2.89 lakh shares by Tek Chand Agarwal. Read More

Stock Market LIVE Updates | HBL Power shares continue to rally, gain 6% amid surge in power stocks

Shares of HBL Power Systems were trading at Rs 263.65, around 5 percent higher at open on the NSE. By mid-day, the stock was trading at Rs 266.30, up by over 6 percent. Other power stocks including NTPC, NLC India, NHPC, and others were also trading higher by up to 4-5 percent.

Earlier this month, HBL management during an analyst meet said that it was on track to achieve its revenue and margin guidance for the year. Over the last six months, the stock has gained over 183.15 percent. Read More

Stock Market LIVE Updates | Nifty PSU Bank index up 1.4 percent led by Indian Bank, Bank of India, Union Bank of India

Stock Market LIVE Updates | Motial Oswal View on Jindal Steel & Power

In the past few weeks, long steel prices have improved, up ~11% from a recent low of Rs 50,500/t in Aug’23 to Rs 57,900/t, thereby reducing the spread between flat and long steel.

With improvement in construction activity, a strong push on infrastructure projects before the election next year, higher demand for automobiles, RE and consumer goods, we expect demand to pick up as vendors rush to stock up inventory before the festive season.

Demand is relatively stronger in 2H, and price improvements should help JSP garner better margins.

Broking house reiterated buy on the stock with a Target Price of Rs 790 (5.5x FY25E EV/EBITDA).

Stock Market LIVE Updates | Godrej Agrovet enters into a strategic partnership agreement with Sime Darby Plantation Berhad

Godrej Agrovet has entered into a strategic partnership agreement with Sime Darby Plantation Berhad (SDP), the largest producer of Certified Sustainable Palm Oil (CSPO). SDP will supply high-quality oil palm seeds to Godrej Agrovet's oil palm business unit(s) and later set up a state-of-the-art seed production unit in India.