Closing Bell: Sensex, Nifty end flat amid volatility; realty gains, banks drag

Deepak Jasani, Head of Retail Research, HDFC Securities:

Nifty barely managed to close higher for the third consecutive session on Aug 30. At close, Nifty was up 0.02% or 4.8 points at 19347.5. Volumes on the NSE came back to being normal. Broad market indices outperformed the Nifty even as the advance decline ratio stood high at 1.85:1.

Global shares started higher on Wednesday, boosted by a Wall Street rally that came on positive reports on consumer confidence and job openings. However European stocks fell after the latest round of price data suggested inflation may not yet be fully on the retreat in the euro region. Asian markets too gave up some of their morning gains.

Non-food bank credit rose 19.7% year-on-year to over Rs 148 lakh crore as on Aug. 11, primarily driven by the merger between Housing Development Finance Corp. and HDFC Bank Ltd. The credit growth number would have been 14.8% without taking the $40-billion merger into account. This is below the trend of over 15% banks have been recording over the last year or so.

Nifty closed higher on Aug 30 but failed to hold on to most of the intraday gains. It has formed a bearish counter attack line; however as this comes after a small rise, the bearish impact is limited. Nifty could now stay in the 19306-19472 band for the near term
.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas:

The Nifty opened the gap up however as the day progressed it faced selling pressure and closed marginally in the green up ~5 points. On the daily charts, we can observe that the Nifty faced resistance at the zone of 19430 – 19450 which is the confluence of the 20-day moving average and also the 61.82% Fibonacci retracement level 19449 of the fall from 19584 – 19229. The daily and the hourly momentum indicator has a positive crossover which is a sell signal. Thus, both price and momentum indicators suggest that it has started the next leg of the fall. Overall, we shall continue to maintain our negative outlook on the index for the target of 19100. In terms of levels, 19250 – 19220 is the crucial support zone while 19420 – 19450 shall act as an immediate hurdle zone.

The pullback rally in Bank Nifty has fizzled out at the 44800 – 44900 zone where resistance in the form of the 78.6% Fibonacci retracement level (44780) of the fall from 44950 – 43984 was placed. The daily and the hourly momentum indicators provide divergent signals and hence a consolidation is likely. It has decisively closed below the 20- and 40-day moving averages which is a sign of weakness. Overall, we expect the Bank Nifty to trade with a negative bias for targets of 43600 – 43500.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services:

Domestic equities started on a strong note on the back of positive global cues. However, it witnessed profit booking in the last hour leading to Nifty giving up all its gains and closing flat at 19347. Broader market outperformed and continued its northbound journey with the Nifty midcap 100 up 0.7% and the Nifty smallcap 100 up 1%. Sectorially it was a mixed bag with buying seen in Realty, Metals, IT, Auto, and FMCG.

Indian equities were positive for a major part of the day on account of the rally in the global markets on the increasing possibility of the US Fed taking a pause in its upcoming policy meet in September after the country reported weaker jobs data and falling consumer confidence. Locally, the market would keenly await the GDP data which is likely to remain strong. However, given mixed global cues and derivatives monthly expiry, Nifty is likely to remain in consolidation mode while sector rotation would lead to stock-specific action.

Ajit Mishra, SVP - Technical Research, Religare Broking:

Markets traded volatile and ended almost unchanged amid mixed cues. After the gap-up start, the Nifty oscillated in a narrow band and selling pressure in the final hours trimmed all the gains. Consequently, it closed around the day’s low at 19,347.45 levels. Meanwhile, a mixed trend continued on the sectoral front wherein metal and realty posted decent gains while energy and banking remained subdued. However, the continued buoyancy on the broader front was the major highlight of the day.

Nifty has failed again to reclaim short term moving average i.e. 20 EMA despite positive global cues and this indicates bears are not in the mood to loosen their grip. We thus reiterate our view to maintain a negative view on the index and stay stock-specific citing the prevailing outperformance of the broader indices.

Vinod Nair, Head of Research at Geojit Financial Services:

Positive sentiment initially propelled domestic equities, buoyed by softer US labour market data that caused a retreat in US bond yields, alleviating concerns about rate hikes. This positive outlook was reinforced by Chinese banks' move to reduce existing mortgage rates, favourably impacting Indian metal stocks. However, gains were tempered as the day progressed, primarily due to weakness in global markets attributed to lacklustre economic data from Europe. Banking stocks bore the brunt of this downturn, while mid- and small-cap segments displayed resilience amid the market dynamics.

Shrikant Chouhan, Head of Research (Retail), Kotak Securities:

Markets were extremely choppy towards the closing hours and erased most of their early gains to end marginally higher, as investors resorted to profit-taking in select stocks ahead of tomorrow's monthly F&O expiry. Traders are unsure how things will pan out in the near term given the mounting challenges like further rate hikes, higher inflation levels and slackening demand growth in China. So a mix of subdued trend to extreme volatility could be the theme for some more time.

Aditya Gaggar Director of Progressive Shares:

Once again, the markets failed to sustain at higher levels. After a strong opening, the Index moved higher but weakness in the Banking sector resulted in a reversal of trade and Nifty50 erased all its gains; however, ended the day with minor gains of 4.80 points at 19,347.45.

The Realty and Metal segments and selected Auto stocks continue to witness buying interest while apart from Banking, Energy sector is also added to the list of underperformers.

Mid and Smallcap indices extended their outperformance with healthy gains of 0.73% and 1.03% respectively.

Nifty50 continued to face stiff resistance at 19,440 and was not able to surpass its 20 & 50DMA which comes around the mentioned levels while for the time being the downside is protected at 19,250.

Rupee Close:

Indian rupee ended flat at 82.73 per dollar on Wednesday against Tuesday's close of 82.70.

Market Close

: The benchmark indices ended on a flat note in the highly volatile market on August 30.

Stock Market LIVE Updates | Morgan Stanley view On SBI Cards & Payment Services

-Overweight rating, target at Rs 1,125 per share
-Industry spending growth was 25% YoY in July
-Company rose faster YoY, lost market share as MoM growth was slower than industry
-Company grew marginally slower, up 1.2% versus 1.3% MoM growth for industry

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

Indian Rupee appreciated on Wednesday on positive domestic equities and a soft US Dollar. However, the surge in crude oil prices capped sharp gains. The US Dollar declined on Tuesday as JOLTS job openings and CB consumer confidence data from the US missed forecasts significantly. This raised expectations of a rate hike pause by the US Federal Reserve in its September FOMC meeting.

We expect the Rupee to trade with a slight negative bias on rising crude oil prices and expectations that the US Dollar may bounce back from lower levels. However, a rise in risk appetite in global markets may support the domestic unit. Traders may take cues from GDP, goods trade balance, pending home sales and ADP jobs data today. Investors may remain cautious ahead of India’s manufacturing PMI and GDP data later this week. USDINR spot price is expected to trade in a range of Rs 82.40 to Rs 83.

Stock Market LIVE Updates | NTPC approves Rs 15,530 crore investment for Lara Super Thermal Power Project

The Board of Directors of NTPC has accorded investment approval for Lara Super Thermal Power Project, Stage-II (2x800 MW) at an appraised current estimated cost of Rs 15,529.99 crore.

Stock Market LIVE Updates | Elara View On Hindustan Aeronautics

Buy rating, target raised to Rs 4,620 from Rs 3,780 per share
Target driven by a new stream of exports business from several countries
Target driven by rise in inflows, stable margin & double-digit earnings growth
Believe rising indigenisation with aircraft export opportunity warrant rerating
Expect earnings CAGR of 11% over FY23-26 with RoE of 21% over FY23-25
Key risks includes lower spend in defence capital budget, rise in commodity prices, less allocation toward domestic procurement, increased competition

Sensex Today | Jaykrishna Gandhi, Head - Business Development, Institutional Equities, Emkay Global Financial Services:

The Nifty has been stuck in the range of 19,350 – 19,550 and is lacking direction (down 0.5% over the last five trading sessions). Mid/Small caps however have continued to rally and valuations are now getting expensive adding to the discomfort of institutional investors. Erratic monsoon, especially with weaker August (lowest rainfall in 122 yrs) can further add to concerns in the quarters to come. Globally, the US markets have rallied a bit on back encouraging data with regard to Job openings wherein employers filed for less than expected job opening hinting at an economy which is cooling.

Thus, easing some fears from Chair Powell’s Jackson hole speech. On the other hand, we are seeing investor interest is returning back to China as the government is now increasingly taking steps to curb the sharp slow down in industrial activity along with property slowdown. Recent activities like decline in tax on trading, lowering of rates are all directed at restoring investor confidence. In the event flows continue to move towards China, India which has already seen FII selling can see a surge in the same which if not met by consistent retail flows can result in a correction.

Stock Market LIVE Updates | Citi View On Piramal Enterprises

-Downgrade to sell rating, target cut to Rs 1,010 per share
-Target to double AUM, scale RoA, RoE still modest with transition risks
-Competitive retail, >25% wholesale AUM being non-interest bearing may weigh on NIMs
-Some early signs of concerns in unsecured lending
-Cutting 2-3% opex/assets calls for scale effect & productivity gains
-Excess capital utilization a key as RoE profile is modest

Sensex Today | Market at 3 PM

The Sensex was up 100.85 points or 0.15 percent at 65,176.67, and the Nifty was up 27.00 points or 0.14 percent at 19,369.70. About 2052 shares advanced, 1089 shares declined, and 100 shares unchanged.

Sensex Today | ​Bhavesh Shah, Managing Director & Head -  Investment Banking, Equirus 

The domestic investors generally have been influenced by the past returns and volatility of the markets. The returns generated in the latter part of calendar year 2020 (70% BSE Sensex gains Apr-Dec20) and full year calendar year 2021 (20% BSE Sensex gains) drove the domestic investors to cut out large cheques in favour of equities in the calendar year 2022.

The returns in the calendar year 2022 have been relatively tepid (5% BSE Sensex gains) with marked volatility on the back of several macro-economic and geo-political factors. So, while the domestic investments continue to be strong at INR 1 Tn in the calendar year 2023 so far, there is a sense of caution that is being exhibited.

Interestingly, the DII investments and the FII investments have seen contrasting investing times in the last couple of years. In months where FII investments are negative, DII investments have been positive and vice versa. In Calendar year 2023 so far, FII investors have been very active with an investment of over USD 16 bn.

Stock Market LIVE Updates | UBS View On Hero MotoCorp

-Sell rating, target at Rs 2,650 per share
-Launches Karizma XMR 210 to revive premium portfolio
-Fully-faired bike segment Rs 13,000/month, launch to add 1-2% to overall EBITDA
-Investor optimism on launches looks overdone while risk to core rises

Stock Market LIVE Updates | Nykaa gains 2% after huge block deal

Shares of Nykaa jumped 2 percent after a huge block deal. Around 2.05 million shares changed hands in bunch trade, according to Bloomberg. However, details of the buyers and sellers were not known.

Stock Market LIVE Updates | Zomato sees another block deal

Shares of Zomato jumped over 5 percent after another 1.53 million shares changed hands in bunch trades, Bloomberg reported. However, details of the buyers and sellers were not known.

Earlier in the morning, around 100 million shares, amounting to an 1.17 percent stake changed hands at an average floor price of Rs 94.70 apiece. The total deal value was around Rs 947 crore.

CNBC-TV18 had previously reported, citing sources that SoftBank was looking to pare 1.17 percent stake in the food delivery giant held through its venture capital fund, SoftBank Vision Fund.

Stock Market LIVE Updates | GIFT NIFTY sets an all-time high single day turnover of $12.98 billion on August 29, 2023

Sensex Today | Oil rises on US stockpile draw and hurricane jitters

Oil prices extended gains on Wednesday after industry data showed a large draw in crude inventories in the U.S., the world's biggest fuel consumer, and as a hurricane in the Gulf of Mexico kept investors on edge.

Brent crude futures for October rose by 42 cents, or 0.49%, to $85.91 a barrel by 0748 GMT. The October contract expires on Thursday and the more active November contract was at $85.32, up 41 cents.

U.S. West Texas Intermediate crude futures rose 50 cents, or 0.62%, to $81.66.

Stock Market LIVE Updates | Goldman Sachs View On Hero MotoCorp

-Sell rating, target at Rs 2,490 per share
-Announces launch of Karizma XMR 210
-At current pricing, expect Karizma to be a favourable ASP, margin product
-Need to see the volume contribution of the new launch to the company

Stock Market LIVE Updates | HSBC View On Zomato 

-Buy rating, target raised to Rs 120 from Rs 102 per share
-Deep dive into hyperlocal raises conviction on long-term value of Blinkit
-Blinkit’s current valuation is at USD 5 billion
-In 3-4 years, believe Blinkit can achieve 6-7 percent CM & 3-4 percent EBITDA margin
-Blinkit earnings will be led by both revenue & cost levers
-Think hyperlocal can be a much bigger business for Zomato in long term

Sensex Today | Market at 2 PM

The Sensex was up 310.26 points or 0.48 percent at 65,386.08, and the Nifty was up 92.50 points or 0.48 percent at 19,435.20. About 2154 shares advanced, 957 shares declined, and 101 shares unchanged.

Sensex Today | Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services:

Gold rallied to its three-week highs as the dollar and Treasury yields slipped amidst weak economic data points. The dollar fell against its major crosses, reversing from earlier gains, after data showed that US job openings fell in July; benchmark 10-year Treasury yields also ticked lower from 10 month highs. The downbeat Job Openings and Labor Turnover Survey and consumer confidence reports suggest the Fed may not raise rates as much as previously anticipated, and that’s supporting bullions.

US consumer confidence data was reported at 106.1 against the expectations of 116, raising questions on consumer spending and overall confidence in economic activities. Probability for a pause in September Fed meeting has also increased from ~80% to ~88%, according to CME Fed-Watch tool, increasing safe haven appeal for gold and silver prices. Investors this week will keep an eye on U.S. personal consumption expenditures price index, and nonfarm payrolls for further clues on interest rate trajectory.

Today focus will be on US GDP and Private payroll data, which if are reported lower than expectations it could further support gains for gold and silver prices. Broader trend on COMEX could be in the range of USD 1915- 1950 and on domestic front prices could hover in the range of Rs 59,000-59,650 could be expected.

Stock Market LIVE Updates | Citi View On Hero MotoCorp

-Buy rating, target at Rs 3,600 per share
-Karizma XMR launched, another step in direction of premiumisation for co
-Specifications attractive when compared with similar models by Bajaj & Honda
-Pricing of new Karizma XMR is also at a slight premium vs competing models
-In addition to Harley X440, Xtreme & Xpulse are other premium models

ALERT | BSE changes expiry date for its banking index to Monday from Friday effective October 16. The existing contracts of BSE Banking index will expire on October 13, 2023.

Stock Market LIVE Updates | Indian Bank board approves raising up to Rs 4,000 crore via QIP

The Committee of Directors for capital raising in its meeting approval for raising of equity capital of the Indian Bank aggregating upto Rs 4000 crore (including premium) through Qualified Institutions Placement (QIP) in one or more tranches subject to all Statutory and Regulatory approvals in this regard.

Sensex Today | Gold near 3-week high as investors cut back US rate hike bets

Gold prices hovered near three-week highs on Wednesday, as investors pared bets of further U.S. interest rate hikes in response to soft economic readings, with more data eyed this week to analyse the outlook.

Spot gold was flat at $1,936.39 per ounce by 0625 GMT, about $2 below its highest level since Aug. 7 hit on Tuesday. U.S. gold futures steadied at $1,964.20.

U.S. Treasury yields slipped to three-week lows and the dollar weakened on Tuesday after data showed job openings dropped to the lowest level in nearly 2-1/2 years in July, while consumer confidence fell more than expected in August.

Lower rates boost demand for non-interest-paying gold.

Shakti Pumps Large Trade | 1.7 lakh shares (0.9 percent equity) worth Rs 14.5 crore changes hands at an average of Rs 861.4 per share, reported CNBC-TV18.

Stock Market LIVE Updates | Titagarh Rail Systems bags order of Rs 350 crore from Gujarat Metro Rail Corporation 

Titagarh Rail Systems has received letter of acceptance (LOA) from the Gujarat Metro Rail Corporation (GMRC) Limited w.r.t. design, manufacture, supply, testing, commissioning and training of 30 nos. of standard gauge cars for Ahmedabad metro rail phase-II project. The order value is approximately Rs 350 crore.

Sensex Today | Oil rises on large US stockpile draw, hurricane jitters

Oil prices extended gains on Wednesday after industry data showed a large draw in crude inventories in the U.S., the world's biggest fuel consumer, and as concerns about a hurricane in the Gulf of Mexico kept investors on edge.

Brent crude futures for October climbed 29 cents, or 0.34%, to $85.78 a barrel by 0635 GMT. The October contract expires on Thursday and the more active November contract was at $85.22 a barrel, up by 31 cents.

U.S. West Texas Intermediate crude futures rose 37 cents, or 0.46%, to $81.53, logging its fifth session of gains.

Sensex Today | Prashanth Tapse, Research Analyst Sr VP Research, Mehta Equities:

We believe Rishabh Instrument IPO offer gives investors an opportunity to invest in a company which is a global leader in manufacturing of energy efficiency products in electrical and electronic segments with uses across diverse industries. With a history of multiple inorganic growth, we consider Rishabh would continue to pursue its business growth through such strategy to expand its footprint in other developed economies.

We also like the way the company has diversified its product portfolio along with the wide customer base, which would help them to enhance customer services, retention and cross-selling. By looking at the financials historically, Rishabh has delivered a healthy growth in revenue from operation of 20%/21% in FY2022/23 and a subdued bottom-line of 0.07% in FY 2023.

On Valuation parse at upper price band of Rs 441/- and based on annualized earnings and fully diluted post-IPO paid-up capital, the issue is asking for a Market Cap of Rs 1674 Cr with P/E of 33.69x on consolidated basis, which seems the issue is fully priced-in looking at growth and expected outlook.

Given the company's export oriented business which is almost 66% of revenue and its strong brand in niche products segment demand, we are inclined to recommend risk taking investors to “Subscribe with Risk” to the IPO.

Sensex Today | Market at 1 PM

The Sensex was up 313.22 points or 0.48 percent at 65,389.04, and the Nifty was up 91.80 points or 0.47 percent at 19,434.50. About 2132 shares advanced, 948 shares declined, and 111 shares unchanged.

Stock Market LIVE Updates | PNC Infra board appoints Devendra Kumar Agarwal as CFO

The board of directors of PNC Infratech approved the appointment of Devendra Kumar Agarwal as Chief Financial Officer (CFO) of the company w.e.f. 30.08.2023.

Stock Market LIVE Updates | SBFC Finance Q1 profit jumps 46.5% YoY to Rs 47 crore

SBFC Finance has recorded standalone net profit at Rs 47 crore for quarter ended June FY24, rising 46.5% over Rs 32 crore profit in year-ago period. Net interest income grew by 40.6% on-year to Rs 141 crore during the same quarter.

Stock Market LIVE Updates | MPS subsidiary acquires Liberate Group

MPS' sbsidiary MPS Interactive Systems has agreed to acquire 65% stake in Liberate Group (comprising Liberate Learning Pty Ltd (Australia), Liberate eLearning Pty Ltd (Australia), App-eLearn Pty Ltd (Australia), and Liberate Learning (New Zealand)). The remaining 35% shareholding of each of the entities of the Liberate Group will be acquired by MPSi in subsequent tranches.