Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities:
The spot rupee closed at the highest level in a month at 74.04 against the dollar on the back of a sharp rise in US treasury bond yields and Brent crude oil prices. Brent crude is trading at the highest level since October 2018 and TSY yields are at the highest levels since June 2021.
Fed turning hawkish and rising oil prices, are pushing yields higher. Higher yields and higher oil prices are double negatives for the Rupee, as they can trigger outflows. Over the near term, the rupee could trade within a range of 73.70-74.70 with a slightly upward bias.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets faltered as investors resorted to profit-taking after the record-breaking rally in the last few sessions. Investors booked profit in realty, IT, and select telecom and banking stocks that saw benchmark Nifty plunge sharply but trimmed losses to end below 17800 which is broadly negative.
Technically, on daily charts, the index has formed a bearish candle which indicates further weakness from current levels. However, as long as the index is trading above the 20 days SMA, the uptrend texture is intact. We are of the view that the market has completed one leg of correction and now 20 days SMA and 17600 -17550 levels would act as a sacrosanct support zone.
For day traders, 17800-17840 would be the intraday resistance level. On the flip side, 17600–17550 would be the strong intraday support zone. The texture of the market is volatile and it will remain volatile till the monthly expiry day.
Palak Kothari, Research Associate at Choice Broking:
On a technical front, the Nifty has taken support from the lower band of a rising wedge pattern which suggests an upside rally in coming sessions. Moreover, the Index has taken support from 100 HMA and given closing above the same, which further adds strength to the upside.
On four hourly charts, the Index has formed a Hammer candlestick with the support of the 21-Four Hourly Moving Average as well as Hourly Momentum Indicator Stochastic. It has also bounced from the oversold zone with a positive crossover which points to upside movement in the counter. At present, the Index has support at 17,550 levels, while upside resistance comes at 17,950 levels.
Vinod Nair, Head of Research at Geojit Financial Services:
Following negative global cues and profit booking in IT and realty sectors, the domestic market hit rough weather, however, it witnessed a rebound towards the closing. Rise in US bond yield and crude oil price along with the Chinese crisis acted as key headwinds to the ongoing rally in the global market. Amid broad-based selling in the domestic market, public sector, energy and metal stocks traded higher.
S Ranganathan, Head of Research at LKP securities:
Highly volatile trade witnessed today with significant swings on either side led by the IT & Oil & Gas Index. The PSE Index put up a stellar show today rising over 3% with power stocks making a smart up move. Despite the smart pullback from the lows of the day, declines were higher than advances in the broader market.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed a correction and an attempt to hold the level around the Nifty 50 Index level of 17,600. It suggests that 17,550-17,600 will be an important support zone for the market to stay positive in the short term.
If the market is able to sustain the level of 17,550-17,600, it can witness higher levels of 18,000. Technical indicator suggests, a volatile movement in the market in a small range between 17,600-18,000.
Market Close
: Benchmark indices witnessed profit booking on September 28 but recovered from the day's low amid buying seen in the metal, power and oil & gas stocks.
At close, the Sensex was down 410.28 points or 0.68% at 59,667.60, and the Nifty was down 106.50 points or 0.60% at 17,748.60. About 1463 shares have advanced, 1715 shares declined, and 164 shares are unchanged.
Bharti Airtel, Tech Mahindra, Bajaj Finance, Divis Labs and Bajaj Finserv were among major losers on the Nifty, while gainers were Power Grid Corp, Coal India, NTPC, IOC and BPCL.
BSE midcap and smallcap indices ended lower with each down over 0.5 percent.
On the sectoral front, the IT and realty indices fell 2-3 percent, while power, oil & gas and metal indices ended in the green.
Mahesh Kumar, EVP & Head Capital & Commodities Market (Abans Group):
Precious metals prices rose on Monday morning session, owing to rising safe-haven demand as a result of China's Evergrande Group's contagion risk. The gold surge, however, was short-lived, as the dollar index rose and global bond yields rose, pushing prices lower.
If Evergrande's and China's nerves continue to relax, gold is likely to face headwinds once more. After the Fed changed its stance on bond buying in the coming months, gold is now trading at $1740, down considerably from this month's high of $1836.9. US 10-year T-note yield and 10-year German bund yield rose to 2-3/4 month highs on Monday which pushed also gold prices lower.
Although, Gold is likely to find support from worldwide spread of the delta Covid variant which is likely to crimp the global economic recovery. The overall number of global Covid cases have now surged past 232 million despite the ongoing mass inoculations in several countries.
Gold prices are projected to continue their short-term downward trend when trading below the 20-day EMA of $1770 and the 50-day EMA of $1790, with immediate support seen around $1736-$1727.
BSE Power index rose 1 percent supported by the BHEL, Power Grid and NTPC
Market at 3 PM
Benchmark indices erased some of the losses but still trading lower with Nifty around 17700.
The Sensex was down 498.86 points or 0.83% at 59,579.02, and the Nifty was down 129.60 points or 0.73% at 17,725.50. About 1246 shares have advanced, 1754 shares declined, and 127 shares are unchanged.
Gold slips to 1-1/2-month low as dollar, bond yields surge
Gold prices fell to a 1-1/2-month low on Tuesday, as firmer dollar and soaring U.S. Treasury yields dented the metal's safe-haven appeal, amid more signals emerging that the U.S. Federal Reserve could be shifting towards tighter policy.
Gaurav Garg, Head of Research, CapitalVia Global Research:
Indian equity benchmarks traded in red in the afternoon session, with both Sensex and Nifty trading in red terrain. Domestic sentiments impacted by negative cues from other Asian markets.
Traders were cautious, after the World Bank said that East Asia and Pacific region’s recovery has been undermined by the spread of the Covid-19 delta variant, which is likely slowing economic growth and increasing inequality in the region. Our research suggests that If the market sustains the level of 59,000, we can witness higher levels of 60,450-60,600. If the index slips by this point, it will extend its losses.
Market update: Sensex is down 977.39 points or 1.63% at 59100.49, and the Nifty tumbled 261.60 points or 1.47% at 17593.50.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices were trading 1.02% up near $76.22 per barrel for the day. MCX Crude oil October futures were trading 1.29% up near Rs 5,651 per barrel by noon.
Crude oil prices are expected to trade up for the day with resistance at $78 and support at $74 per barrel. MCX Crude oil October has support at Rs 5,560 and resistance at Rs 5,720.
European markets are trading in the red with FTSE, CAC and DAX down half a percent to 1 percent each
Rail Vikas Nigam Limited bags order
Rail Vikas Nigam Limited has bagged order worth Rs 382 crore from Madhya Pradesh Metro Rail Corporation including design and construction of seven elevated metro rail stations including viaduct portion within the stations and transition spans on either side of the stations worth Rs 382 crore, the company said. The stock was trading at Rs 30.10, up Rs 0.25, or 0.84 percent. It has touched an intraday high of Rs 30.65 and an intraday low of Rs 29.75.
Market update at 2 PM:
Sensex is down 829.33 points or 1.38% at 59248.55, and the Nifty tumbled 216.90 points or 1.21% at 17638.20. Power Grid, Coal India and NTPC are the top gainers while Bharti Airtel, Bajaj Finance and Tech Mahindra are the top losers.
Among the sectors, the realty index is down over 4 percent while the IT index shed over 2 percent.
UBS maintain buy on ICICI Prudential Life Insurance;
Foreign research house UBS has maintained buy on ICICI Prudential Life Insurance and raised target price to Rs 800 per share.
The management maintained its guidance of doubling FY19 VNB by FY23, while expect margin expansion to continue.
The average VNB margin seen at 26.2% & VNB CAGR over FY21-24 at 25.7% and expect an APE CAGR of 22.7% over FY21-24E.
ICICI Prudential Life Insurance Company was quoting at Rs 668.55, up Rs 5.35, or 0.81 percent on the BSE.
BSE Healthcare index fell 1 percent dragged by the Gland Pharma, Themis Medicare, Metropolis Healthcare
Gold Updates:
Gold prices held steady on Tuesday, as concerns over a potential fallout of Chinese property developer Evergrande’s unsolved debt crisis provided some respite to the safe-haven metal against a firmer dollar and elevated U.S. Treasury yields.
Anand Rathi on Aditya Birla Sun Life AMC IPO:
At the upper end of the IPO price band, Aditya Birla Sun Life AMC Ltd. is offered at P/E of 39x its FY21 earnings, with a market capitalization of Rs 205,056 million.
Given that the company is the largest non-bank affiliated AMC and among the four largest AMCs in India with well recognized promoters, growing individual investor customer base, diverse product portfolio with high RoNW of 30.87% in FY21 - We give this IPO a subscribe rating.
Market at 1 PM
Benchmark indices fell over 1 percent in the afternoon session with Nifty below 17,700.
The Sensex was down 742.26 points or 1.24% at 59335.62, and the Nifty was down 196 points or 1.10% at 17659.10. About 1177 shares have advanced, 1752 shares declined, and 135 shares are unchanged.
Nifty Energy index rose 1 percent led by the Power Grid, NTPC, HPCL, Gail India
Asian Markets Update
Asian shares were mixed across the region on Tuesday as investors fretted over China Evergrande Group's debt crisis and a widening power shortage in China.
MSCI's broadest index of Asia-Pacific shares outside Japan was just slightly higher by mid-afternoon after trading in the red following a mixed session on Wall Street.
NORD/LB selects TCS as strategic partner for its IT Transformation
Tata Consultancy Services (TCS) has been selected by NORD/LB, a leading German commercial bank, as its strategic partner for its IT transformation.
Tata Consultancy Services was quoting at Rs 3,772.25, down Rs 64.70, or 1.69 percent on the BSE.
Amarjeet Maurya - AVP - Mid Caps, Angel One:
Somany Ceramics is a manufacturer and trader of complete decor solutions and its extensive range of products include Ceramic Wall and Floor Tiles, Polished Vitrified Tiles etc. Shift from unorganized (currently - 60%) to organized (currently -40%) tiles markets will benefit branded players like SCL.
Further, exports anti-dumping duty levied by the US on Chinese players as well as other countries, has been absorbing the Morbi based unorganised volumes, thus improving the demand and pricing scenario for organized players like SCL.
Going ahead, we expect company to report a healthy bottom-line due to strong brand and wide distribution network and improvement in operating margins.
Buzzing
Bharat Heavy Electricals (BHEL) share price rose nearly 7 percent on September 28 after company won an order from Goa Shipyard for warship gun mount.
"Goa Shipyard has placed a maiden order on Bharat Heavy Electricals Limited (BHEL) for supply of an upgraded Super Rapid Gun Mount (SRGM), the Main gun onboard most Warships of the Indian Navy," company said in its press release.
Market at 12 PM
Benchmark indices extended the losses and trading at day's low point with Nifty below 17,750.
The Sensex was down 438.53 points or 0.73% at 59,639.35, and the Nifty was down 108.30 points or 0.61% at 17,746.80. About 1418 shares have advanced, 1477 shares declined, and 137 shares are unchanged.
an Infraconstruction board to consider interim dividend, bonus issue on October 4
M
The meeting of board of directors of Man Infraconstruction will be held on October 4, 2021, to consider and declare interim dividend for the Financial Year 2021-22; and issue of bonus shares and matters related thereto.
Man Infraconstruction touched a 52-week high of Rs 108.90 and was quoting at Rs 103, down Rs 0.50, or 0.48 percent on the BSE.
BSE Metal index rose 1 percent supported by the Coal India, Vedanta, JSW Steel
Sun Pharma launches Chericof 12 in India
Sun Pharmaceutical Industries announced the launch of a novel formulation in cough management - Chericof 12 (Dextromethorphan Hydrobromide 30 mg and Chlorpheniramine Maleate 4 mg) in India.
Sun Pharmaceutical Industries was quoting at Rs 760.15, down Rs 2.80, or 0.37 percent on the BSE.
Market update at 11 AM
Sensex is down 213.95 points or 0.36% at 59863.93, and the Nifty shed 44.30 points or 0.25% at 17810.80. Power Grid, Coal India and NTPC are the top gainers while Bharti Airtel, Divis Labs and HCL Tech are the top losers.
Among the sectors, the realty index is down over 2 percent while the midcap and smallcap indices are trading flat.
Jefferies on Godrej Consumer Products:
Jefferies has maintained buy rating on Godrej Consumer Products with a target at Rs 1,190 per share.
The company expects a gradual growth pick-up in Indonesia after a muted trend, and expansion, launches should drive double-digit growth in medium to long-term.
The input price inflation remains high but would be offset via price hike & cost saving, Jefferies added.
Godrej Consumer Products was quoting at Rs 1,058.05, up Rs 20.40, or 1.97 percent on the BSE.
Nifty IT index fell more than 1 percent dragged by the Mphasis, Coforge, HCL Technologies
Anupam Rasayan bags Letter of Intent worth Rs 145 crore
Anupam Rasayan has signed Letter of Intent (LOI) worth Rs 145 crore with existing long-term European multinational customer which is one of the top ten multinational company across the globe for supplying a new life science related active ingredient. The company will enter into a long-term contract for next three years to supply this life science related speciality chemical product, company said in its release.
At 10:17 hrs Anupam Rasayan India was quoting at Rs 838.00, up Rs 40.20, or 5.04 percent on the BSE.
Sebi bans 5 persons in Zee Entertainment insider trading case
Zee Entertainment Enterprises share price was trading lower by over 2 percent on September 28 after Sebi confirmed ban on five persons in Zee Entertainment insider trading case.
Sebi on September 27 confirmed its earlier directive passed against five persons wherein they were barred from the securities market for indulging in insider trading in the scrip of Zee Entertainment Enterprises.
"Bijal Shah, Gopal Ritolia, Jatin Chawla, Gomti Devi Ritolia and Daljit Chawla are restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders," Sebi said in its 43-page confirmatory order.
Rupee Opens:
Indian rupee opened marginally higher at 73.80 per dollar on Tuesday against previous close of 73.84.
Market at 10 AM
Benchmark indices erased all the opening gains and trading flat with buying seen in the PSU Bank, metal and oil & gas stocks.
At 10:02 IST, the Sensex was up 24.15 points or 0.04% at 60,102.03, and the Nifty was up 19.20 points or 0.11% at 17,874.30. About 1680 shares have advanced, 980 shares declined, and 130 shares are unchanged.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
There are conflicting signals that might influence the markets in the short-term. Rise in US 10-year bond yield is a negative for emerging markets like India, particularly if this trend sustains and gathers momentum, going forward. Rise in Brent crude to USD 80 is a negative for India's macros.
We are witnessing sectoral rotation in Indian markets now. Buying in banks and autos is a reflection of increasing confidence in the domestic economy theme. There is profit booking in IT since the segment has given excellent returns of 82 percent one-year return. Markets might consolidate for a while before making a decisive move.
BSE Realty index slipped 1 percent dragged by the Oberoi Realty, Prestige Estate, Phoenix Mills
Raymond board approves consolidation plan
Raymond board approved consolidation of Tools & Hardware and Auto Components businesses into Engineering business for improving synergies and exploring monetization options for deleveraging Raymond," company said in its press release.
At 09:47 hrs Raymond was quoting at Rs 467.10, up Rs 19.30, or 4.31 percent.
ICICI Direct:
The US dollar index gained for a second straight session on Monday, bolstered by the rise in Treasury yields ahead of a slew of Federal Reserve speakers this week who could reinforce expectations of the start of asset purchase tapering before the end of the year.
Rupee future maturing on October 27 depreciated by 0.09% on Monday’s trading session on surge in crude oil prices and uptick in dollar index.
Rupee is expected to depreciate further on strength in dollar index along with rising crude prices which are likely to put further pressure on the rupee. However, persistent FII inflows will be supportive for rupee and sharp losses may be prevented.
Furthermore, Central bank speakers will be in focus this week, with Fed Chair Jerome Powell joining Treasury Secretary Janet Yellen in speaking to Congress.
Nifty PSU Bank index added 1 percent led by the Central Bank of India, UCO Bank, SBI
RBI imposes penalty of Rs 2 crore on RBL Bank
"The Reserve Bank of India (RBI) has imposed, by an order dated September 27, 2021, a monetary penalty of Rs 2 on RBL Bank," company said in its release.
RBL Bank was quoting at Rs 189.35, down Rs 0.95, or 0.50 percent on the BSE.
Gainers and losers on the BSE Sensex:
Market Opens
: Indian indices opened on positive note on September 28 with Sensex above 60,100.
At 09:16 IST, the Sensex was up 25.29 points or 0.04% at 60103.17, and the Nifty was up 17.10 points or 0.10% at 17872.20. About 1170 shares have advanced, 461 shares declined, and 103 shares are unchanged.
ICICI Direct:
Indian markets are likely to start Tuesday's session on the positive note amid mixed global cues as investors continued to keep an eye on the developments surrounding debt-laden China's Evergrande. US markets ended mixed ahead of the speeches from several Fed officials and developments surrounding debt-laden China Evergrande.
Market at pre-open
: Benchmark indices are trading firm in the pre-opening session.
At 09:02 IST, the Sensex was up 192.12 points or 0.32% at 60,270, and the Nifty was up 135.40 points or 0.76% at 17,990.50.
