Blockbuster Friday | Nifty at 25,800, Sensex gains 1,360 pts; all sectors in the green

Indian equity indices ended on strong note with Nifty around 25,800 on September 20. At close, the Sensex was up 1,359.51 points or 1.63 percent at 84,544.31, and the Nifty was up 375.20 points or 1.48 percent at 25,791.

We wrap up today's edition of the Moneycontrol live market blog, and will be back Monday 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 positive note and witnessed a volatile trading session. Intraday volatility was very high however the Nifty managed to hold on to crucial support levels and closed the day in the green up ~375 points. On the daily charts we can observe that the Nifty is moving towards the upper end of the rising channel placed at 26000 which is also our short-term target. Support is placed in the zone of 25500 – 25450.

Bank Nifty has closed above the previous all-time high of 53350 and is now heading toward 55000 in the short term. Intermediate pullbacks or intraday dips should be used as a buying opportunity. The support zone is placed at 52800 – 52700.

Market ends higher for the second straight week, financials outperforms

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Friday’s surge helps Nifty Midcap end in the green

Nifty IT, Pharma Top laggards in sectoral indices, Nifty IT down nearly 3 percent

Markets edged higher amid volatility, gaining nearly one and a half percent, largely tracking global trends. The first half saw a positive tone, though volatility in the latter half kept traders on edge. Reflecting the movement of the benchmark index, all key sectors contributed, with realty, auto, and metal stocks leading the gains. Broader indices also recovered from their recent dip, advancing between 0.9% and 1.6%.

The market continues to closely follow global cues, especially from the US, whose recent strength enabled Nifty to break through the 25,550 resistance level. Attention is now focused on the next milestone of 26,000. Sector-wise, we maintain our preference for banking, financials, auto, and realty, while advising a selective approach in other sectors. Additionally, the emphasis should remain on index heavyweights and large midcaps for long positions.

After showing a range bound action with volatility in the last five sessions, Nifty witnessed an excellent upmove on Friday and closed the day higher by 375 points. Nifty opened on a positive note and showed sustainable upside in the early to mid-part of the session. A sharp knee jerk action of afternoon was followed by a sustainable upside bounce and reach new all-time highs at 25849 levels.

A long bull candle was formed on the daily chart, which indicates a decisive upside breakout in the market of the last 4-5 sessions range movement. The Nifty has broken above the range as well as the trend line resistance around 25500 levels.

Nifty on the weekly chart formed a reasonable bull candle that has surpassed the congestion area of the last three weeks around 25300-25500 levels and closed higher.

The short-term trend of Nifty is sharply positive. Having surged up in one session on Friday, there is a possibility of consolidation/breather pattern in the short term, before moving up further. Next upside targets as per Fibonacci extension to be watched around 26250. Immediate support is at 25650.

The Indian market has joined the rally following the 50bps Fed rate cut and super accommodative monetary policy. It is expected to bring positivity to the economy and foreign inflows in the short to medium-term as the global economy continues to be robust. Traction is on rate sensitive sectors like Auto & Finance. Conventional sectors like FMCG are also performing well in anticipation of good results led by the dual benefit of demand and reduction in input cost.

Indian rupee ended 11 paise higher at 83.57 per dollar on Friday versus Thursday's close of 83.68.

Indian equity indices ended on strong note with Nifty around 25,800 on September 20.

At close, the Sensex was up 1,359.51 points or 1.63 percent at 84,544.31, and the Nifty was up 375.20 points or 1.48 percent at 25,791. About 2346 shares advanced, 1434 shares declined, and 103 shares unchanged.

All the sectoral indices ended in the green with auto, bank, capital goods, healthcare, FMCG, power, telecom, metal and realty up 1-3 percent.

Biggest gainers on the Nifty were M&M, ICICI Bank, JSW Steel, Bharti Airtel and L&T, while losers included Grasim Industries, SBI, IndusInd Bank, TCS and Bajaj Finance.

BSE midcap and smallcap indices up 1 percent each.

Indian Rupee traded at the highest levels in more than two months on Friday as domestic equities touched fresh all-time highs again and overall weakness in the US Dollar. The greenback is trading with a negative tone after a 50-bps rate cut by the US Federal Reserve. This week, among the other major central banks, Bank of England, PBoC and Bank of Japan kept their interest rates unchanged.

We expect Rupee to trade with a positive bias on positive domestic markets and fresh foreign inflows amid 50-bps rate cut by the Fed. Overall weakness in the US Dollar may also support the Rupee. However, a positive tone in crude oil prices may cap sharp upside. Traders may take cues from speeches by FOMC members. USDINR spot price is expected to trade in a range of Rs 83.35 to Rs 83.70.

The Sensex was up 1,169.92 points or 1.41 percent at 84,354.72, and the Nifty was up 329.00 points or 1.29 percent at 25,744.80.

#1 AGR decision is not direct but derivative impact on company

#2 See no impact on expected on tenancy growth

#3 There is possibility of multiple de-rating

#4 Low possibility of lump sum payment & any special dividend now

#5 Buy call given inexpensive valuations (6.9X our FY26 EV/EBITDA vs 12.6X for global peers)

The Indian markets are rallying today, driven by strong global cues. Historically, emerging markets tend to outperform during the onset of a rate-cut cycle in the U.S., especially when coupled with a decline in the dollar index and U.S. bond yields. Indian markets, backed by robust fundamentals, remain resilient despite concerns over valuations. Lage-cap stocks, particularly in the private banking sector, continue to look attractive, fueling the current bullish momentum. However, there is noticeable underperformance in the broader market. This positive trend is expected to persist unless significant negative developments arise on the domestic or global front. For Nifty, 25,921 is the immediate target, while 25,500 should serve as a strong support level. - Santosh Meena, Head of Research, Swastika Investmart Ltd

The market witnessed a sharp decline, with Nifty dropping 300 points from its highs, primarily driven by a downturn in Nifty IT stocks. The Sensex also dipped by 0.5 percent during the session.

Nifty, Sensex retreated from record highs but held on to firm gains. At 13:40 hrs, the Sensex was up 479.39 points or 0.58 percent at 83,664.19, and the Nifty was up 161.00 points or 0.63 percent at 25,576.80. About 2,013 shares advanced, 1,337 declined, and 84 were unchanged.

Shares of Indian Railways Finance Corporation (IRFC) snapped multi-day losing streak, moving in-line with a broader market upmove.

Supreme Court directs SpiceJet to ground, return 3 engines within 15 days to lessors, upholds #HighCourt order to ground, and return 3 engines to lessors for non-payment.

SC dismisses SpiceJet plea challenging HC order, says airline can negotiate w/lessors independently

The company has received an order dated September 19, 2024 from the Office of the State Tax Officer, Jamnagar, Gujarat levying on the Company a

penalty of Rs.1,59,810 under Section 74 of the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017.

Patel Engineering has been declared lowest Bidder (L1) for the works involving modification of diversion tunnel into tunnel spillway arrangement – Civil & Hydro Mechanical works for Package 6 - Teesta-V Power Station, Sikkim.

The project is to be completed in a period of 18 months.

The United States Food & Drug Administration (USFDA) conducted a routine GMP inspection of our Formulation manufacturing facility located

at Pithampur, Madhya Pradesh between 16-Sep-24 to 20-Sep-24.

At the end of the Inspection, the Agency issued a Form FDA 483 with one observation which is procedural in nature.

The Board has approved the appointment of Vaibhav Khadke as Chief Financial Officer, effective September 20, and Suresh Jagdale as General Manager-Account, effective September 19.

The board has approved a rights issue at Rs 50 per share, with a rights entitlement ratio of one equity share for every six equity shares held by eligible shareholders. The company had previously approved a Rs 200 crore rights issue in July.

The Karnataka State Pollution Control Board (KSPCB) has granted consent for Operation for the company’s manganese and iron ore mines, allowing the enhancement of manganese ore production from 0.43 MTPA to 0.55 MTPA.

#1 Bharti Airtel net loss at 16.9 lakh users vs addition of 12.52 lakh users, MoM

#2 Reliance Jio net loss at 7.58 lakh users vs addition of 19.11 lakh users, MoM

#3 Vodafone Idea net loss at 14.13 lakh users vs loss of 8.60 lakh users, MoM

#4 BSNL adds 29.47 lakh users

The company has acquired the remaining 51% stake in its joint venture, Rane NSK Steering Systems (RNSS), from NSK Ltd, Japan. Following the acquisition, RNSS has become a wholly-owned subsidiary and will be renamed Rane Steering Systems.

The company has dissolved Dextara Digital (UK), its step-down subsidiary based in the UK.

The bank has announced a partnership with Niva Bupa Health Insurance Company to offer health insurance products to its customers.

Shares of Jyothy Labs Limited surged 2 percent to Rs 556 in the morning trade on September 20 after the company announced the acquisition of 'Quiclo', a laundry service brand owned by Smartwash Solutions Private Limited. The acquisition includes Quiclo’s software and customer database, marking a strategic move to strengthen the company's presence in the laundry service sector.

The deal, which is valued at Rs 70 lakh plus applicable taxes, is set to bolster the company’s customer base, particularly in Hyderabad, aligning with its core laundry business. Further, the company’s laundry service and dry-cleaning unit located at Hyderabad has commenced its commercial operations, it said in a regulatory filing. Read More

The bank will receive a refund of Rs 123.9 crore from the Income Tax Department for the Assessment Year 2021-22.

The real estate developer has issued corporate guarantees of Rs 545 crore to secure credit facilities being availed by Techzone Technologies and Thomsun Realtors.