Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities:
Nifty has given breakout of the trading range of 15500-15950. An impulsive up-move backed by liquidity has pushed the index towards 16250 mark and is further expected to gain. We continue to remain positive on the broader markets and suggest buying on dips. For the August series range is seen at 15900-16600 with a positive bias. Banking and Auto stocks are expected to gain momentum while Metal stocks could witness profit booking. Mid-cap space is expected to move incremental with pockets of outperformance.
Ajit Mishra, VP - Research, Religare Broking
The market continued its surge for the second consecutive session and gained nearly a percent. The benchmark opened the gap up, tracking upbeat global cues which further strengthened with strong buying in banking and financials majors. Finally, the Nifty closed at 16,259 levels, up by 0.8%. On the flip side, most sectoral indices ended in the red due to profit taking at the higher levels. The broader indices too remained under pressure and ended lower in the range of 1-1.2%.
Since the Nifty has almost tested the immediate target of 16,300, we may see a pause in the following session. However, the recent buoyancy in banking and financials would help the index to maintain the positive bias. At the same time, the profit taking in the other sectors and broader indices demands extra caution in the selection of stocks. We advise aligning positions accordingly.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities:
Bulls continue with the positive momentum as benchmark Nifty hit another fresh all time high of 16290.20 after a massive breakout. The uptrend was largely supported by the HDFC twins, private banks and financial stocks. Technically, on daily charts the index has formed breakout continuation formation, which is broadly positive for the market. But intraday charts and momentum indicators suggest temporary overbought situation and traders may take cautious stance near 16300 -16330 level.
We are of the view that in next few trading sessions buying on dips and sell on rallies would be the ideal strategy for the day traders. The trade setup suggests that 16200- 16150 would be the key support level for the bulls. On the flip side, the 16300-16330 level could be the immediate hurdle for the market.
S Hariharan, Head - Sales Trading, Emkay Global Financial Services:
Nifty is trading close to technical resistance from a trendline connecting earlier highs in CY2021 (Feb & Jun) – seen in conjunction with non-confirmation of strength in Mid-cap & Small-cap indices, which had hitherto been out-performing headline indices, this suggests a narrow advance, and potential for a short-term pull-back. Long futures open interest for the Retail segment has seen some unwinding over the last week and net long positions are down to mid-Jun levels; this was also evident in cheap roll spreads during July expiry, and points to reluctance to extend leverage on long positions. High-beta sectors appear most vulnerable to a correction in the near-term.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The markets got off to a flying start but decided to take a breather closer to the 16300 level. If we can get past 16300, the next target for the Nifty should be 16600. The new support for the market is at 15700 and hence any dip or intra day correction can be used to accumulate long positions for higher targets.
Rupee Close:
Indian rupee ended higher at 74.18, after hitting 6-week high at 74.08, as the buying saw in the domestic equity market, touching fresh record highs.
It opened 13 paise higher at 74.15 per dollar against previous close of 74.28 and traded in the range of 74.08-74.24.
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers:
Major equity indices have touched all-time highs today. We have a significant rally in banks, Financials and large cap stocks which made it possible. Although, mid and small cap stocks remained largely muted as leadership was seen from largecap space today. First, the PMI data which came in positive yesterday and comments by FM on GST collection scaling back to 1 lakh crore mark proved sentimentally positive. Also, today's result from PSU bellwhether SBI which were good except higher slippages which was also informed by management that larger part is called back in July also provided much needed push to indices further.
Market Close
: Benchmark indices posted a fresh record high level and gained for the third consecutive day on August 4 led by the banking names.
At close, the Sensex was up 546.41 points or 1.02% at 54,369.77, and the Nifty was up 128 points or 0.79% at 16,258.80. About 1073 shares have advanced, 2104 shares declined, and 113 shares are unchanged.
HDFC, Kotak Mahindra Bank, ICICI Bank, HDFC Bank and SBI were the top Nifty gainers. Grasim, Titan Company, Tata Motors, Hindalco andAdani Ports were among the top losers.
Except bank, all the other sectoral indices ended in the red. However, the midcap and smallcap indices lost 1 percent each after hitting fresh record highs.
Windlas Biotech IPO subscribed 2.56 times on day 1
The public issue of Windlas Biotech has been fully subscribed on August 4, the first day of bidding, amid strong interest from retail investors.
The offer has been subscribed 2.56 times as it received bids for 1.56 crore equity shares against the IPO size of 61.36 lakh equity shares, the subscription data available on exchanges showed.
Chemplast Sanmar IPO to open on August 10
Specialty chemicals manufacturer Chemplast Sanmar has decided to launch its initial public offering for subscription on August 10. The offer will close on August 12.
The company is planning to raise Rs 3,850 crore through public issue which consists of a fresh issue of Rs 1,300 crore and an offer for sale of Rs 2,550 crore by promoters.
Promoters Sanmar Holdings and Sanmar Engineering Services will offload Rs 2,463.44 crore and Rs 86.56 crore worth of shares.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed yet another session of strong trend. After overcoming the resistance level around the Nifty 50 Index level of 16000 in yesterday’s session, market has been able to sustain above the previous all-time high. While sustaining above 16200 is the key factor from a short-term perspective, maintaining above this level is important for market to gain momentum and extend the rally until 16500. The momentum indicators like RSI and MACD indicating a positive outlook to continue.
Krsnaa Diagnostics IPO sees subscription 1.32 times on day 1
The public offer of Krsnaa Diagnostics, one of the fastest-growing diagnostic chains in India, has seen a subscription of 1.32 times on the first day of bidding, August 4, as it received bids for 94.07 lakh equity shares against offer size of 71.12 lakh equity shares, the subscription data available on exchanges showed.
Retail investors seem to be in a strong position as their reserved portion was oversubscribed by 6 times and that of non-institutional investors 6 percent.
Employees have put in bids 5 percent of their reserved portion and qualified institutional investors bought 48 percent of their reserved portion.
Devyani International IPO subscribed 1.77 times on day 1
The initial public offering (IPO) of KFC, Pizza Hut and Costa Coffee operator Devyani international has been subscribed 1.77 times on August 4, the first day of bidding.
The offer has received bids for 19.96 crore equity shares against the IPO size of 11.25 crore equity shares, the subscription data available on exchanges showed. The IPO size has been reduced to 11.25 crore equity shares from 20.42 crore equity shares after the company raised Rs 824.87 crore from anchor investors on August 3.
The retail investors remained at the forefront as their reserved portion was subscribed 7.92 times and that of employees 38 percent.
The portion set aside for non-institutional investors has seen a subscription of 25 percent and qualified institutional buyers have put in bids for 3.03 crore equity shares against their reserved portion of 6.11 crore equity shares.
Bosch Q1 earnings:
The company has reported a net profit at Rs 260.3 crore versus loss of Rs 121.5 crore and revenue was at Rs 2,443.5 crore versus Rs 991.5 crore, YoY.
Bosch was quoting at Rs 15,495.30, up Rs 260.60, or 1.71 percent on the BSE.
Lakshmi Iyer, CIO (Debt) & Head Products, Kotak Mutual Fund:
The MPC meets at the cusp of a visibly sticky inflation, nudging growth phase and a fluid pandemic situation world over. The central banker is mostly likely to maintain a status quo on rates being mindful of growth and wait for more data points on inflation front. There could be some steps towards normalisation of liquidity via increased tenor and/or quantum of VRRR (variable rate reverse repo) – something which bond markets seem to be anticipating.
Godrej Consumer Products Q1 earnings:
The company's Q1 net profit rose 4.8% at Rs 413.6 crore versus Rs 394.9 crore and revenue was up 24.4% at Rs 2,894.4 crore versus Rs 2,327.3 crore (YoY).
Godrej Consumer Products touched a 52-week high of Rs 1,023.90 and quoting at Rs 1,001.50, down Rs 15.05, or 1.48 percent on the BSE.
Market at 3 PM
Benchmark indices were holding on the gains with Nifty above 16200.
The Sensex was up 559.40 points or 1.04% at 54382.76, and the Nifty was up 131.20 points or 0.81% at 16262. About 981 shares have advanced, 2005 shares declined, and 87 shares are unchanged.
Tata Consumer Products Q1 results:
The company has posted net profit at Rs 413.6 crore versus Rs 394.9 crore and revenue was up 24.4% at Rs 2,894.4 crore versus Rs 2,327.3 crore, YoY.
Tata Consumer Products was quoting at Rs 758.35, down Rs 9.00, or 1.17 percent on the BSE.
Exxaro Tiles IPO subscribed 3.15 times on Day 1:
The initial public offering (IPO) of Exxaro Tiles, a midsized vitrified tiles manufacturer, has got a good response as the offering was subscribed 3.15 times within hours of opening on August 4.
The offer had received bids for 3.6 crore equity shares even before noon against the IPO size of 1.14 crore equity shares, the subscription data available on the exchanges showed.
Retail investors yet again led from the front, subscribing the issue 6.5 times over. The portion set aside for non-institutional investors was subscribed 16 percent and that of employees 12 percent, while qualified institutional buyers have put in bids for 95 percent of their reserved portion.
Maruti Suzuki production will be partially impacted in August month
This is to inform you that owing to the semiconductor shortage situation, company has been informed by its contract manufacturing company, Suzuki Motor Gujarat Private Limited (SMG), that production will be partially impacted in this month, Maruti Suzuki India said in the release.
SMG will tentatively not carry out production on the three Saturdays (7th, 14th and 21st August). In addition, some of the production lines may see temporary reduction from 2-shift to 1-shift working, it added.
Maruti Suzuki India was quoting at Rs 7,085.20, down Rs 111.10, or 1.54 percent on the BSE.
Karur Vysya Bank Q1 earnings:
The company's net profit up 3.2% at Rs 108.9 crore versus Rs 105.5 crore and net interest income (NII) was up 13.5% at Rs 637.9 crore versus Rs 561.8 crore, YoY.
Karur Vysya Bank was quoting at Rs 47.70, down Rs 0.25, or 0.52 percent on the BSE.
PNB Housing Finance Q1
Net profit was down 5.4 percent at Rs 243.3 crore against Rs 257.2 crore (YoY). Revenue was down 9.5 percent at Rs 1,691.8 crore against Rs 1,870.1 crore (YoY). The stock was trading at Rs 720.45, up Rs 34.30, or 5.00 percent. It has touched an intraday high of Rs 720.45 and an intraday low of Rs 671.00. There were pending buy orders of 42,569 shares, with no sellers available.
Solara Active Pharma: Aditya Puri joins Board as the Chairperson:
Solara Active Pharma Sciences on August 4 said veteran banker Aditya Puri has joined the Board as the Chairperson. "Aditya Puri, Former MD of HDFC Bank and a senior advisor to a large PE fund, joins Solara Board as the Chairperson. He will also head the Nomination and Remuneration Committee of the Board," the company said in a BSE filing.
European markets are trading in the green with CAC and DAX adding half a percent each:
India rupee hits 6-week top on IPO inflows, record-high stocks:
The Indian rupee strengthened to a six-week high on Wednesday, buoyed by gains in local stocks and inflows towards initial public offerings, but bonds stayed largely steady ahead of an interest rate review due later this week.
The partially convertible rupee was at 74.17/18 per dollar, as of 0805 GMT, after touching 74.0925 earlier, its strongest since June 22. It had closed at 74.28 on Tuesday.
”There seems to be good flows into the market and not much resistance from the RBI (Reserve Bank of India) so far. If global cues are also positive, we could see the rupee break 74 this week,” a senior trader at a private bank said.
Adani Green Energy Q1:
Net profit at Rs 219 crore against Rs 22 crore (YoY). Revenue was up 25.6 percent at Rs 977 crore against Rs 778 crore (YoY). EBITDA rose 30 percent at Rs 754 crore against Rs 580 crore (YoY). EBITDA margin at 77.2 percent against 74.6 percent (YoY). One-time gain at Rs 80 crore against one-time loss of Rs 71 crore (YoY).
Tata Steel BSL Q1
: Net profit at Rs 2,478 crore against loss of Rs 650 crore (YoY). Revenue at Rs 7,858.3 crore against Rs 2,697 crore (YoY).
Market update:
Sensex is up 565.78 points or 1.05% at 54389.14, and the Nifty jumped 131.00 points or 0.81% at 16261.80. HDFC, SBI and ICICI Bank are the top gainers while Coforge, SBI and Axis Bank are the most active stocks.
State Bank of India Q1 earnings:
State Bank of India has posted 55.3 percent jump in its Q1net profit at Rs 6,504 crore versus Rs 4,189.3 crore and net interest income was up 3.7% at Rs 27,638 crore versus Rs 26,641.6 crore, YoY.
SBI has touched a 52-week high of Rs 460.70 and was quoting at Rs 456.80, up Rs 10.35, or 2.32 percent.
Naveen Kulkarni, Chief Investment Officer, Axis Securities:
Nifty made a record high and crossed 16k levels and today Sensex touched 54k for the first time, signifying the continuation of the bull run. Market is welcoming the sequential recovery of key high frequency indicators like manufacturing PMI, the GST collection and the Google mobility data, all are trending higher on a month-on-month basis. With the improvement in key macro data, FIIs turned buyers in the equity market v/s the net sellers in the last month. Further, the recent spate of IPOs and their success clearly indicates the appetite for mid and small cap stocks.
Overall, we remain constructive on the market and we believe Mid Cap, Small Cap, and Large Cap Value will be the key allocation themes. Any dips should be utilized to build positions in the recommended themes.
Blue Star Q1 results:
The compan yhas posted net profit at Rs 12.9 crore agaisnt loss of Rs 20 crore and revenue was up 68.1% at Rs 1,052 crore versus Rs 626 crore, YoY.
Blue Star was quoting at Rs 836.40, down Rs 2.75, or 0.33 percent on the BSE.
Butterfly Gandhimathi Q1:
The company has posted net profit at Rs 1 crore versus loss of Rs 8.6 crore and revenue was up 88% at Rs 144.4 crore versus Rs 76.8 crore, YoY.
Butterfly Gandhimathi Appliances was quoting at Rs 766.10, down Rs 33.50, or 4.19 percent on the BSE.
Gaurav Garg, Head of Research, CapitalVia Global Research:
Indian benchmark indices started positive with the global sentiments intact towards positivity, completely ignoring the spread of delta variant around the world. Sentiment in the Indian market remained positive with the market breaching important level of 16000, and positive cues from the wall street and other Asian markets.
All major sectors have shown positivity in the market in the second half. We have witnessed the breach of 16200 level, sustaining above 16200, we expect the market to gain momentum, leading to an upside projection till 16450-16500 level. Technical indicators also support positivity in the market.
Market at 1 PM
Benchmark indices were trading near the record high level with Nifty holding above 16200.
The Sensex was up 499.98 points or 0.93% at 54323.34, and the Nifty was up 117.40 points or 0.73% at 16248.20. About 1079 shares have advanced, 1847 shares declined, and 89 shares are unchanged.
BSE Realty index fell 1 percent dragged by the Sobha, Phoenix Mills, Indiabulls Real Estate
State Bank of India touches 52-week high ahead of Q1 results:
State Bank of India (SBI) will release its June quarter scorecard on August 4 and it may show some signs of weakness in business growth even though asset quality is likely to be largely stable, say experts.
State Bank of India was quoting at Rs 444.30, down Rs 2.15, or 0.48 percent on the BSE.
Exxaro Tiles IPO fully subscribed on Day 1:
The initial public offering (IPO) of Exxaro Tiles, a midsized vitrified tiles manufacturer, has got a good response as the offering was subscribed 1.29 times within hours of opening on August 4.
The offer had received bids for 1.47 crore equity shares even before noon against the IPO size of 1.14 crore equity shares, the subscription data available on the exchanges showed.
Nifty Bank index added 1.5 percent led by the ICICI Bank, Kotak Mahindra Bank, HDFC Bank
Market at 12 PM
Benchmark indices erased some of the intraday gains but still trading higher with Nifty above 16200.
The Sensex was up 371.83 points or 0.69% at 54195.19, and the Nifty was up 85.70 points or 0.53% at 16216.50. About 1166 shares have advanced, 1711 shares declined, and 108 shares are unchanged.
HDFC, ICICI Bank, Kotak Mahindra Bank, HDFC Bank and Axis Bank were among major gainers on the Nifty.
Devyani International IPO subscribed 33% on day 1
The initial public offering (IPO) of KFC, Pizza Hut and Costa Coffee operator Devyani international has been subscribed 33 percent on August 4, the first day of bidding.
The offer has received bids for 3.71 crore equity shares against the IPO size of 11.25 crore equity shares, the subscription data available on exchanges showed. The IPO size has been reduced to 11.25 crore equity shares from 20.42 crore equity shares after the company raised Rs 824.87 crore from anchor investors on August 3.
The retail investors remained at the forefront as their reserved portion was subscribed 1.78 times and that of employees 11 percent.
The portion set aside for non-institutional investors has seen a subscription of 3 percent and qualified institutional buyers have put in bids for 1.1 lakh equity shares against their reserved portion of 6.11 crore equity shares.
Gold Updates:
Gold prices edged higher on Wednesday, helped by a subdued dollar, but the precious metal bobbled in a narrow range as investors awaited signals from US jobs data on the labour market recovery.
Adani
Ports shares gain after June quarter results:Adani Ports share price trading in the green on August 4, a day after the country's largest integrated logistics player reported a 77.04 percent rise in consolidated net profit at Rs 1,341.69 crore for the first quarter of the current fiscal.
Adani Ports and Special Economic Zone Limited had clocked a consolidated net profit of Rs 757.83 crore in the corresponding period of the previous fiscal, according to a regulatory filing.
The company’s total income rose to Rs 4,938.43 crore in the latest June quarter from Rs 2,749.46 crore in the year-ago period.
Rahul Bajoria, Chief India Economist at Barclays India
: India’s services PMI improved in July, although at 45.4 it remains in contraction territory. The contraction in services activity is disappointing and is materially weaker than the sharp expansion seen in manufacturing activity in July. This points to lingering curbs imposed across several states impeding contact intensive services activity more than manufacturing output. However, we continue to believe that July marks the beginning of the improvement in services, and we expect activity to gain more momentum in the coming months.
Data released earlier showed that a swift recovery in activity is underway in the Indian economy, with the manufacturing PMI coming in at 55.3 in July. While the second wave of COVID infections acted as a speed bump, given that movement curbs are now easing across states, economic activity rebounded across sectors in June-July. We continue to forecast GDP growth of 9.2% in FY2021-22, a bit below the central bank’s 9.5% projection.
Vodafone CEO rules out fresh equity infusion into Vodafone Idea
Vodafone Chief Executive Officer Nick Read said the telecom major will not be infusing fresh equity into debt-ridden Vodafone Idea (Vi). Read made the comments during a conference call with investors on July 23, Business Standard has reported.
"We as a group try to provide them as much practical support as we can, but I want to make it very clear, we are not putting any additional equity into India," he said, as quoted by the publication.
Market update at 11 AM:
Sensex is up 593.86 points or 1.10% at 54417.22, and the Nifty jumped 154.30 points or 0.96% at 16285.10. HDFC, ICICI Bank and IndusInd Bank are the top gainers while Coforge, HDFC and ICICI Bank are the most active stocks.
Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors:
The rupee to open higher at 74.15 as flows due to 4 IPOs trickle in and RBI relents to slow and grinding appreciation. The range for the day is 73.90 to 74.40. Exporters to keep selling on all uptics while importers to cover only near term imports and keep hedges open.
