Closing Bell: Nifty above 25,000, Sensex up 612 points; IT, metal, realty shine

Indian equity indices ended on strong note with Nifty at 25,000 on August 26. At close, the Sensex was up 611.90 points or 0.75 percent at 81,698.11, and the Nifty was up 187.40 points or 0.75 percent at 25,010.60.

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.

Today, the benchmark indices witnessed promising uptrend rally, the Nifty ends 187 points higher while the Sensex was up by 612 points. Among Sectors, IT and Digital indices outperformed rallied over 1 percent whereas intraday profit booking were seen in selective PSU Banks and Healthcare stocks.

Technically, on the backdrop of positive global sentiments, our market opened with a positive note and after robust opening throughout the day, it maintained positive momentum. In addition, on daily charts, it has formed uptrend continuation formation and on intraday charts, it is holding higher bottom formation, which supports further uptrend from the current levels. For the trend following traders now, 24900/81300 would be the trend decider level. Above the same, the market could continue the positive momentum till 25125-25200/82000-82600. On the flip side, below 24900/81300 uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions.

US FED has signalled a rate cut in September which is reflecting in the decline in US treasury yields and dollar index, which has led to a rally in global markets despite there being no indication of size of cuts. Indian markets hit a new high led by change in FIIs stance to positive from negative along with continued strong DIIs inflows. Although the overall trend was positive, large caps outperform on account of healthy earnings and relatively fair valuation compared to broader markets. IT, Realty, FMCG and Consumption gained on account of improved outlook.

The Nifty remained strong throughout the day. On the daily chart, a visible green candle has formed after two consecutive negligible red candles, suggesting improving sentiment. However, resistance is evident at 25,080, and a decisive move is needed to witness a rise toward 25,300. On the other hand, failure to move above 25,080 might trigger selling in the market, potentially bringing the index back toward 24,800.

After an initial movement, the Index held its gains and oscillated in a thin range to settle at 25,010.60 with gains of 187.45 points. On a sectoral front, Metal (+2.16%) was the top performer followed by Realty (+1.76%) and IT (+1.39%) while PSU Bank (0.50%) was the major laggard. Mid and Smallcaps also remained rangebound and underperformed the Frontline Index.

With a strong bullish candle, the Index has filled its bearish gap zone which indicates a strong presence of bulls. The immediate hurdle is placed at the previous high of 25,078 while the downside seems to be protected at 24,870.

A strong close above 25,078 will be considered a breakout from a V-shaped pattern and in that case, the approximate target comes to 26,270.

Indian rupee ended flat at 83.90 per dollar on Monday versus Friday's close of 83.90.

Indian equity indices ended on strong note with Nifty at 25,000 on August 26.

At close, the Sensex was up 611.90 points or 0.75 percent at 81,698.11, and the Nifty was up 187.40 points or 0.75 percent at 25,010.60. About 2075 shares advanced, 1791 shares declined, and 138 shares unchanged.

Biggest Nifty gainers were Hindalco, NTPC, HCL Technologies, Bajaj Finserv and ONGC, while losers included Apollo Hospitals, Hero MotoCorp, Adani Ports, Eicher Motors and Maruti Suzuki.

Except PSU Bank, all other sectoral indices ended in the green with Information Technology, Metal, Oil & Gas, Realty up 1-2 percent.

The BSE midcap index was up 0.6 percent and smallcap index was up 0.2 percent.

Sun Drops Energia, a wholly owned subsidiary of KPI Green Energy, has received Letters of Intent for executing solar power projects with a cumulative capacity of 13.30 MW under the ‘Captive Power Producer (CPP)’ business segment of the Company.

The Board of Directors approved the Buyback of up to 6,65,000 fully paid-up equity shares of face value of Rs 10 each of the company representing up to 0.72% of the total paid up equity shares of the company at a price of Rs 900 per equity share payable in cash for an aggregate amount of up to Rs 59,85,00,000.

#1 Created a niche for itself in commoditised steel/stainless steel wire market

#2 Offering the widest product range and reducing customer/industry concentration

#3 Undertaking two initiatives that are sharply more profitable

#4 Foraying into steel cords & backward integration in stainless steel rods

#5 See 40 percent+ EBITDA CAGR over FY24-27E, with high teens post-tax RoCE

#6 Valuations at 24x FY26e PE/ 17x FY27e PE look undemanding

Indian Rupee gained today on rise in domestic markets and a weak US Dollar. However, a surge in crude oil prices capped sharp gains. US Dollar fell to the lowest levels since July 2023 on dovish comments by Fed Chair Jerome Powell at the Jackson Hole Symposium on Friday. Powell indicated that a September rate cut is coming. It shows that the focus has shifted from inflation to unemployment. Fed also remains open to acting bigger if August payroll data shows deterioration.

We expect Rupee to trade with a slight positive bias on risk in global risk sentiments amid dovish Fed speak and rising expectations of a rate cut by the Fed in September. However, geopolitical tensions in the Middle East and rising crude oil prices may cap sharp upside. Traders may take cues from durable goods orders data from the US. 83.65 to Rs 84.10.

EFC has been awarded a design and build contract with Tata Consultancy Services (TCS).

Also, executed a Letter of Intent (LOI) for the acquisition of a prime property valued at over Rs 80 crore. The property spans 49,556 square feet and boasts a seating capacity of over 1,500, strategically located within Pune City.

Pradhin announced it has diversified into the Steel and Real Estate sectors to expand in high-growth industries. The firm said it is in advanced talks with Reliance Industries Ltd for a major order worth up to Rs100 crore to supply Fe 600 grade TMT Bars and Beams to Reliance’s Jamnagar facility.

The Securities and Exchange Board of India (Sebi) has issued show-cause notices to Vijay Shekhar Sharma, founder of One 97 Communications Ltd (Paytm’s parent), and board members who served during its initial public offering in November 2021 for alleged misrepresentation of facts, two people with direct knowledge of the matter.

The notices pertain to Sharma’s alleged non-compliance with promoter classification norms. The probe was initiated based on inputs from the Reserve Bank of India (RBI), which had examined Paytm Payments Bank earlier this year, the people cited above said. (Read More)

ONGC has started production from its fifth oil well in the KG-DWN-98/2 Cluster-2 asset. Alongside this, the company has successfully commissioned its gas export line from the offshore site to the onshore terminal.

Earlier in January, oil production commenced from the same asset, with 4 out of 13 wells already flowing. Gas production is also progressing, with 3 out of 7 wells currently online.

#1 Rise in hospital profitability to be gradual hereon

#2 Digital segment growth underwhelming

#3 Valuations are at a premium to most industry peers

#4 Limited opportunities to expand capacity in existing hospitals

#5 Expect the expansion to be a drag on EBITDA margin in near term

#1 Asacol HD generic finally has a generic competition

#2 Teva receives US FDA nod for Asacol HD, gets 180-day exclusivity

#3 Asacol HD likely to have contributed USD 140-160 million of sales in FY24

#4 With Teva’s launch, sales of the product may fall by 40-50 percent from current level

#5 Impact of competition in this product should also reflect in the valuations

MIC Electronics has received a Letter of Acceptance from the Lucknow Division of the Northern Railway Zone for the provision of

Integrated Passenger Information System at PRG, PYGS, and PFM Stations in c/w Mahakumbh-2025.

The aggregate value of the said work order is Rs 2,54,73,441.45.

Max Estates shares jumped over six percent on August 26 after receiving approval from the Noida authorities to develop a project.

The Noida authorities granted approval for the development of the 'Delhi One' project on a land parcel measuring 34,697 square meters, located in Sector 16B, Noida. This project adds 2.6 million sqaure feet of development potential to the portfolio of Max Estates. Read More

The company has emerged as the lowest bidder for a project worth Rs 478 crore from the Mumbai Metropolitan Region Development Authority (MMRDA). The project involves the design and construction of an elevated road from Kalyan-Murbad Road to Badlapur Road to Pune Link Road, parallel to the Waldhuni River, crossing over the Karjat-Kasara railway line, including a slip road.

The Sensex was up 636.46 points or 0.78 percent at 81,783.74, and the Nifty was up 208.35 points or 0.84 percent at 25,031.50.

Kaynes Technology is a prominent end-to-end and IoT-enabled integrated electronics manufacturer, with strong order book growth (85% CAGR over FY20-24) and a higher share of Box Build (~42% in FY24) and PCBA (~55%)

Estimate a revenue/EBITDA/Adj. PAT CAGR of 56%/62%/67% over FY24-FY27, driven by a healthy order book growth trajectory and a better margin profile (increasing mix of high-value orders).

Tokai Rika Minda India, a joint venture between Tokai Rika Co., Japan, and Uno Minda, has announced the opening of a new manufacturing plant at Neemrana, RIICO Industrial Area, Rajasthan.

The plant has an annual production capacity of 3,84,022 units per month and will manufacture smart keys, shift levers (shift by wire), seat belts, and other products.

The Directorate of Enforcement (ED) conducted searches at the premises of Executive Chairperson Rashmi Saluja, Group CFO Nitin Agarwal, Group General Counsel Nishant Singhal of Religare Enterprises, and the subsidiary Religare Finvest's Chief Operating Officer Chirag Jain on August 21.

The Panchnama indicated that no incriminating documents or digital devices were found or seized during the search. However, the ED has frozen the ESOP shares of the company's health insurance subsidiary, Care Health Insurance, held by Rashmi Saluja, Nitin Aggarwal, and Nishant Singhal.

The company has received an income tax refund of Rs 202.55 crore, comprising a tax refund of Rs 189.25 crore and interest of Rs 13.30 crore, for the Assessment Year 2023-24.

#1 Target for IOC raised to Rs 200 from Rs 180

#2 Target for BPC cut to Rs 460 from Rs 470

#3 Target for HPCL raised to Rs 480 from Rs 440

#4 Downward orientation of global oil prices is positive

#5 Expect low government interference in pump prices

#6 Strong marketing margin offsets weakness in GRMs

The RPG Group company has secured new orders worth Rs 1,079 crore in the transmission & distribution (T&D) and cables businesses. The T&D business has secured orders for T&D projects in India, the Middle East, and the Americas.

The Sensex was up 601.83 points or 0.74 percent at 81,688.04, and the Nifty was up 179.60 points or 0.72 percent at 25,002.80.

Mangalam Drugs & Organics has been awarded a grant by The Medicines for Malaria Venture (MMV). The grant amounts to USD 274,800 and is designated for the research and development of Pyronaridine.

The US Food and Drug Administration has completed an inspection of the company's manufacturing facility in Baddi, Himachal Pradesh, with zero Form 483 observations. The facility is dedicated to manufacturing Cephalosporin oral dosage forms.

#1 Third year of new energy brought company’s new venture closer to reality

#2 Company planning to launch its solar PV giga-factory by the end of 2024

#3 FY24 financials reveal capex of USD 1 billion for solar Manufacturing business

#4 Upcoming AGM should provide more granularity

Mini Diamonds India (MDIL) has entered into a strategic business arrangement with Parasamani Inc., a jewellery company based in Toronto, Canada.

Through this collaboration, Parasamani will market and promote MDIL’s lab-grown diamond jewellery across Canada, utilising its strong relationships with retailers, wholesalers, and distributors to significantly boost MDIL’s sales in the region.

Kolkata-based Bazaar Style Retail Ltd has set a price band of Rs 370-389 a share for its initial public offering that will open on August 30. The anchor bidding will start on August 29 and the issue will close on September 3.

The IPO comprises a fresh issue of Rs 148 crore and an offer for sale of up to 17.65 million shares by its existing shareholders and promoters. On the upper band price of the issue, the OFS valued at Rs 687 crore and the total issue comes at Rs 834.68 crore. The total mcap will be at Rs 2,900 crore.

Global index provider FTSE has announced changes to the FTSE All Cap & All World Indices in its Semi-Annual Index Review. A total of 13 stocks, including Bank of Maharashtra, Bharat Dynamics, Central Bank Of India, Cochin Shipyard, Endurance Technologies, Escorts Kubota, GE T&D India, Hitachi Energy India, Housing & Urban Development Corporation, IRB Infrastructure Developers, KEI Industries, Lloyds Metals and Energy, and Motilal Oswal Financial Services, will be added to the FTSE All World Index, effective September 23. Additionally, FTSE also announced 48 additions to the FTSE All Cap Index, according to reports from CNBC-TV18.

Namita Thapar-backed Emcure Pharmaceuticals bagged its first 'buy' tag since its market debut more than a month ago. Global brokerage Jefferies has assigned a price target of Rs 1,600, which implies a potential upside of 15 percent from Friday's closing price. This bullishness from Jefferies comes after the stock has surged around 40 percent from its issue price of Rs 1,008. READ MORE

Considering 1) the fermentation-based APIs, including those for oncology in the portfolio, and 2) two years of operational control by Perfect Day, broking house awaiting clarity on the renewed strategy and additional investments by the JV (ZYDUSLIF/Perfect Day) to revitalize the SBL business prospects

The company continues to build a niche product pipeline in the US generics market to sustain its growth momentum. That said, the valuation adequately factors in a 12% earnings CAGR over FY24-26

The company has signed a License Agreement for its new hotel property under its upscale brand, Aurika Hotels & Resorts, in Surat, Gujarat. The property will be operated by the subsidiary Carnation Hotels and is expected to open in FY30. This hotel will feature 175 aesthetically designed rooms and suites.

The company's subsidiary, JSW Neo Energy, has received a Letter of Award for setting up a 250 MW grid-connected wind power project from Adani Electricity Mumbai.

The Reserve Bank of India has approved SBI Mutual Fund's proposal to acquire a 9.99% stake in Karur Vysya Bank, according to reports from CNBC-TV18. SBI MF must acquire the 9.99% stake in the bank within one year from the date of the RBI's letter.

Zydus' subsidiary and Perfect Day Inc., a Temasek portfolio company, have signed an agreement where Perfect Day will sell its 50% shareholding in Sterling Biotech. Following this transaction, Sterling Biotech will become a 50:50 joint venture with equal board representation. The joint venture will establish a manufacturing facility to produce fermented animal-free protein for global markets.

The company has received approval from the US Food and Drug Administration (US FDA) for its Abbreviated New Drug Application (ANDA) for Betamethasone Valerate foam, 0.12%. The ANDA is therapeutically equivalent to the reference listed drug product (RLD), Luxiq foam, 0.12%, from Norvium Bioscience, LLC. Betamethasone Valerate foam is used to treat scalp skin conditions.

Expect a 14% earnings CAGR over FY24-26, fueled by an 11% sales CAGR and a 180bp margin expansion

Considering a) the expansion in product offerings in major therapies, b) the  capitalization on leverage, c) a further improvement in the share of chronic therapies, d) the scale up of more brands to the Rs 500 million-Rs 1 billion bracket, e) improvement in the MR productivity, and f) footprint expansion in metro/Tier-I  cities, we assign a multiple of 42x on 12M forward earnings to arrive at target price of Rs 2,760. Reiterate Buy.

KEC International share price rose 5 percent in early trade on August 26 following the company’s announcement of securing new orders valued at Rs 1,079 crore in its transmission & distribution (T&D) and cables businesses.

The new orders for the T&D segment include: A 765 kV/400 kV transmission line project from a prominent private developer in India. 230/132 kV transmission line projects in Saudi Arabia and Oman. Upgradation of a 400 kV transmission line in the United Arab Emirates (UAE). Supply of towers, hardware, and poles in the Americas. In addition, the cables business has secured various orders for cable supply both in India and internationally.

Ashoka Buildcon share price jumped more than 3 percent in the opening trade on August 26 after the company bagged a project worth Rs 478 crore.

Mumbai Metropolitan Region Development Authority (MMRDA) has declared the company as the lowest bidder for EPC work for the design and construction of an elevated road from KalyanMurbad Road (Palms Water Resort) to Badlapur Road (Jagdish Dughdhalaya) to Pune link road parallel to Waldhuni river crossing over Karjat- Kasara railway line including slip road.

The project is to be executed in 36 months including the monsoon period.

Gold prices held ground on Monday, buoyed by a weaker dollar and Treasury yields after US Federal Reserve Chair Jerome Powell’s dovish remarks cemented expectations for a September rate cut.

Spot gold was steady at $2,511.04 per ounce, after gaining more than 1 percent in the previous session. US gold futures were flat at $2,546.40.

Mahindra and Mahindra has received an order from the Deputy Commissioner, Hardwar- Sector 6, Haridwar, Uttarakhand imposing a penalty u/s 73 of the CGST Act, 2017 amounting to Rs 7,49,542 in relation to claim of the Input Tax Credit (ITC) against invoices pertaining to FY 2019-20 on which supplier has apparently not discharged GST liability.

#1 Have strong chemistry skills in developing complex molecules

#2 No exposure to volatile US Market a key differentiator

#3 High growth in India & Canada, operating leverage & debt reduction should benefit

#4 See 11 percent revenue CAGR from market share gains in India & new launches in exports

#5 See profit CAGR of 29 percent over FY24-27

State-owned REC Ltd on Sunday said it has inked an initial pact to provide up to Rs 45,000 crore financing to various Jawaharlal Nehru Port Authority (JNPA) projects.

REC Ltd, under the Ministry of Power and a leading non-banking financial company (NBFC), signed an MoU with Jawaharlal Nehru Port Authority (JNPA) for financing up to Rs 45,000 crore for various upcoming JNPA projects, includingdevelopment of Vadhavan Port, a company statement said. Read More

Bharat Heavy Electricals (BHEL) has signed contract agreement with Adani Power and its subsidiary (Mahan Energen Ltd.) for setting up 3 Supercritical Thermal Power projects (each of 2x800 MW rating) in Kawai, Rajasthan & Mahan, Madhya Pradesh.

Shilpa Medicare has successfully completed phase-3 clinical studies of its novel product SMLNUD07 - Nor Ursodeoxycholic Acid (NorUDCA) tablets that is expected to revolutionise the treatment of patients suffering from Nonalcoholic Fatty Liver Disease (NAFLD).

Fed chair Jerome Powell's comment about cutting interest rate raises hopes that the US central bank will start cutting policy rates from September onwards. Equity markets generally benefit from rate cuts as lower interest rates will spur spending and give a boost to the economy.

The US market has already bounced higher, and others may follow suit. The pivot by the US Fed is also an indication that RBI may also start thinking about cutting interest rates sooner than earlier expectations.

This may also encourage companies to restart their capex plans as cost of capital will go down.

#1 Target cut to Rs 3,200 from Rs 3,300

#2 50 percent decline in retail capex a key positive of FY24 annual report

#3 Consolidated capex declines only by 7 percent in FY24

#4 Telecom capex remaining high & other segments see 5x rise

#5 Optimistic of further decline in capex & net debt as telecom capex moderates

#6 Pace of investment in new energy remained slow with FY24 investment of USD 1-1.2 billion

#7 Have Further moderated our retail & O2C earnings for FY25

A block deal involving shares worth Rs 804 crore of AU Small Finance Bank took place on the exchanges on August 26. Around 1.30 crore shares, making up a 1.7 percent stake of the lender changed hands at a floor price of Rs 630 apiece.