Closing Bell: Sensex drops 398 pts, Nifty below 25,000; Tata Motors, NTPC, Adani Ports top losers

Today, the benchmark indices witnessed profit booking at higher levels, the Nifty ends 122 points lower while the Sensex was down by 398  points. Among Sectors, Oil Gas and PSU Bank indices lost the most shed over 1.5 percent whereas selective Pharma and FMCG stocks registered buying interest at lower levels. Technically, after muted open one more time market took resistance near 25100 and reversed sharply. On daily charts it has formed small bearish candle on intraday charts it has formed lower top formation which suggest temporary weakness.

We are of the view that, the current market texture is weak but fresh sell of possible only after dismissal of 20 day SMA (Simple Moving Average) or below 24900/81400. Below the same, it could slip till 24775- 24725/81000-80800. On the flip side, 25000/81800 would be the key levels for the bulls. Above which, it could bounce back till 25100-25150/82150-82500.

Volatility marked the trading session with intense profit-taking in late trades dragging key indices deeper in red at close. All eyes will be on key US inflation data on Friday that will give some hint about the Federal Reserve’s likely move on interest rates in its policy meeting later this month.

The domestic market experienced a minor consolidation in line with Asian peers due to correction of commodity prices like crude which has collapsed to 70$. Market sentiment remained cautious due to the slowdown in the Chinese economy. Investors await the release of the US CPI and domestic inflation data. It is anticipated that US inflation will have an uptick in monthly data, while domestic inflation is expected to remain stable. Additionally, this muted trend was influenced by the BoJ’s indication of a potential rate hike if inflation remains elevated.

Indian rupee ended at 83.98 a dollar, unchanged from its previous close of 83.98.

On September 11, Indian markets ended weaker, with the Sensex down 398 points (0.49%) at 81,523.16, and the Nifty slipping 122.65 points (0.49%) to 24,918.45. There were 1,619 advancing stocks, 2,345 declining, and 106 unchanged.

Asian Paints, Bajaj Finance, and Sun Pharma led the gains, while Tata Motors, NTPC, and Adani Ports & SEZ were the top losers.

Samvardhana Motherson International shares, along with other auto players' stock prices, plunged almost four percent in early trade on September 11, following a downward revision of BMW Group’s 2024 guidance. As BMW contributes around five percent to Samvardhana Motherson's topline, the market reacted to the news negatively.

BMW Group's downward revision was triggered in part by additional headwinds in the Automotive Segment resulting from delivery stops and technical actions linked to the Integrated Braking System (IBS) that is provided to the BMW Group by a supplier.

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Shares of Bajaj Auto extended gains to the third straight session, rising 4 percent to touch an all-time high of Rs 11,498 per share on September 11. The spurt comes on the back of heavy volumes, as around 1 million equity shares exchanged hands on both NSE and BSE in intra-day deals, exceeding one-week average of 0.3 million equity shares.

Over the past one month, the stock of this two-wheeler automaker surged over 17 percent, significantly beating benchmark Nifty 50's 2 percent rise.

Oil prices plunged to lowest level in three years on Tuesday as demand outlook is getting worsened with China’s economic health depleting fast, which prompted OPEC to revised down its demand outlook for 2024 and 2025. The cartel forecasts global demand to grow by more than 2m b/d this year and by 1.74m b/d in 2025, while OPEC’s output for August fell by 197k b/d MoM to 26.59m b/d in August. The decline was largely driven by Libya, where stoppages saw production fall 219k b/d MoM and OPEC+ production stood around 40.66 mbpd.

Crude prices bounced on Wednesday to trade above $67 as concerns about Tropical Storm Francine disrupting supply of oil outweighed worries about demand, following sharp selloff in previous session. As of Tuesday, about 24% of crude production and 26% of natural gas output in the U.S. Gulf of Mexico were offline due to the storm.

WTI crude futures dropped by 4.31% to $65.75, the lowest since December 2021, due to investor concerns despite Tropical Storm Francine's impact. Brent crude also fell by 3.69% to $69.49, marking its lowest close since December 2021.

We expect prices to remain volatile in either direction in short term, while hurricane fear will see prices testing the resistance of $68.50, but sustaining at that level or higher would depend how sooner could US refiners resumes operations. The overall trend remains bearish for oil in medium to long term we expect prices to fall back to $65-$62 in medium term.

Spot gold, currently at $2526, is up nearly 0.30% following a rise of around 0.40% yesterday. The metal gained yesterday as the two-year and ten-year US yields slumped to fresh cycle lows on rate cut bets amid weakening labor market.  Concerns about China’s economy also supported it.

Today, the metal is nearing the record high level of $2532 as both the two-year and ten-year US yields have extended their decline to fresh lows. Consequently, the US Dollar Index is down 0.20% despite weaker than expected UK GDP data.

Total known global ETFs continue to attract inflows in anticipation of the US rate cuts. Traders look forward to the crucial US CPI data to be released this evening to gauge the Fed rate cut pace. The yellow metal can be highly volatile in the wake of the US CPI data; thus, strict stoploss is must. Key resistance is around $2550, while support is at $2500/$2485.

Indian Rupee traded with a positive bias today on sharp decline in crude oil prices and a soft US Dollar. Crude oil prices declined by more than 4% and brent crude is trading at lowest levels since December 2021. A decline in US treasury yields also favoured the Rupee.

We expect Rupee to trade with a slight positive bias on weakness in the US Dollar and weak crude oil prices. Any intervention by the RBI may support the Rupee at lower levels. However, concerns over global economic growth may cap sharp upside. Traders may take cues from US CPI data. Investors may remain cautious ahead of India’s inflation and ECB monetary policy tomorrow. USDINR spot price is expected to trade in a range of Rs 83.70 to Rs 84.20.

Shares of Prism Johnson surged over 15 percent on September 11 to hit a fresh record high of Rs 246 on the National Stock Exchange (NSE) due to a spurt in volume. So far in the day, over 7 crore shares of the company changed hands on BSE and NSE combined, compared to the one-month trading volume of 36 lakh shares.

Following the sharp increase in trading volume, BSE sought clarification from the company on September 11 regarding the unusual volume movement.

Markets gave semiconductor stocks a thumbs up after Prime Minister Narendra Modi reaffirmed India's commitment to building and growing its semiconductor infrastructure while speaking at the Semicon India 2024 event.

Prime Minister Narendra Modi on September 11 said the world can bet on India when the chips are down, adding that it is the right time to be in the country.

He further highlighted India's growing stature in the global chip manufacturing industry, saying the country contributes 20 percent of the world's talent, which is only increasing. "For India, chip’s meaning is not just technology, but a medium to address aspirations of consumers. India is a big consumer of chips," Modi said.

At 1 pm, RIR Power Electronics and SPEL Semiconductor saw only buyers, hitting their respective upper circuits of five percent.

CG Power and ASM Technologies shares were trading higher by 2.5 percent each, while Moschip Technologies shares were up four percent.

Shares of Infibeam Avenues Ltd fell as much as 8 percent as the stock traded ex-date for spin off of its digital marketing arm Odigma Consultancy Solutions.

Today (September 11) is also the record date for the purpose of determining the eligibility of shareholders of Infibeam Avenues for the issue and allotment of equity shares of Odigma Consultancy Solutions.

Leading infrastructure player JSW Infra is considering a significant fund-raise of over Rs 5,000 crore, likely via the QIP route, CNBC-TV18 reported on September 11, citing unnamed sources, sending its shares soaring nearly 6 percent in trade.

It is also learnt that the QIP may be undertaken to meet capex requirements as well as to adhere to market regulator's minimum public shareholding norms. The channel reached out to JSW Infrastructure and the company has reverted with 'no comments'.

Shoppers Stop shares scaled over ten percent in trade to record a fresh lifetime high on September 11. So far in trade, over 14 lakh shares exchanged hands in trade on the bourses, multiple times higher than the one-month daily traded average of 76,000 shares. In the September 10 session, only 23,000 shares were traded.

Shares of Sona BLW Precision Forgings jumped over 3 percent to Rs 738 apiece on September 11 after the company successfully raised Rs 2,400 crore through a Qualified Institutional Placement (QIP) of equity shares. Among the key investors, SBI Mutual Fund secured a quarter of Sona BLW’s equity issue, while ICICI Prudential Fund acquired 8.33 percent of the shares.

The company approved the issuance of 3.47 crore equity shares to eligible institutional buyers at Rs 690 per share. This issue price represented a 1.3 percent discount to the floor price of Rs 699.01 and a 3 percent discount compared to the previous day's closing price of Rs 713.

Sona BLW intends to utilise the funds from the QIP to strengthen its capital structure and support both its organic and inorganic growth strategies. Jefferies India and JM Financial acted as the Book Running Lead Managers for the QIP, while Shardul Amarchand Mangaldas & Co. served as the Legal Counsel for the company.

Piramal Pharma shares zoomed over 5 percent and hit a record high of Rs 243.99 on September 11, with heavy trading volumes and strong growth prospects driving sentiment for the stock. As many as two crore shares of the company changed hands on the exchanges so far, double the one-month daily traded average of one crore shares.

Meanwhile, growth prospects for the company also improved after the US passed the draft Biosecure Act, aimed at prohibiting the government from contracting with, or providing grants to, companies that do business with a “biotechnology company of concern.” It specifically names five Chinese companies: BGI Genomics, MGI Tech, Complete Genomics, WuXi AppTec, and Wuxi Biologics.

This much-awaited development sparked hopes of more contracts in the Contract Development and Manufacturing Organization (CDMO) space being diverted to Indian companies. While the draft bill was passed in the US House of Representatives on Monday, expectations of its passage have been brewing for a long time. Read More.

Goa Carbon's shares rose over 9 percent on September 11 and hit an intraday high of Rs 849.7 after the company informed the exchanges that it has officially resumed operations in its Goa unit following a temporary shutdown for maintenance work. The plant, located in St. Jose de Areal, Salcete-Goa, had been non-operational since July 29. The company's shares posted positive monthly returns from June to September this year. The strongest performance of 2024 came in January and April, when the stock delivered monthly gains of 29 percent and 22 percent, respectively.

Regreen-Excel EPC India is a technology-driven EPC company specialising in the design, manufacture, and supply of ethanol plants. Over the years, they have developed comprehensive, end-to-end capabilities in setting up ethanol plants using various feedstocks, including molasses, sugarcane syrup, grains, or a combination of these. This allows them to offer concept-to-commissioning solutions for their clients.

The company's initial share-sale comprises a fresh issue of equity shares worth Rs 350 crore and an offer-for-sale (OFS) of 1.14 crore equity shares by promoters, according to the draft red herring prospectus.

Aurobindo’s new injectable facility, Eugia Steriles – a 100 percent stepdown subsidiary – receives first approval by USFDA

Bajaj Housing Finance IPO (initial public offering) has been subscribed over 10 times so far on the last day of bidding today (11 September) as the strong demand continues for the issue from non-institutional wealthy investors and retail investors. The Rs 6,560-crore public issue of Bajaj Housing Finance has got bids for over 768 crore shares against 72.75 crore shares on offer, across both BSE and NSE, as of 11.06 am. READ MORE

Goa Carbon's shares rose over 9 percent on September 11 and hit an intraday high of Rs 849.7 after the company informed the exchanges that it has officially resumed operations in its Goa unit following a temporary shutdown for maintenance work. The plant, located in St. Jose de Areal, Salcete-Goa, had been non-operational since July 29. READ MORE

Shares of Ramco Systems gained over 6 percent to hit a 52-week high of Rs 455 on NSE after the enterprise software provider said that it has launched the latest version of its Aviation Software. The version 6.0 aims to "revolutionise maintenance, repair, and overhaul (MRO) operations and maintenance and engineering (M&E) processes with cutting-edge technology and AI-driven features", it said. READ MORE

Here are top highlights of market expert Gautam Shah's conversation with CNBC-TV18

#1 It is dangerous to believe that every dip will be bought; the market is looking a little exhausted

#2 There is a battle between domestic liquidity and global headwinds

#3 In the short term, 25,150 is an important barrier for Nifty

#4 Global headwinds are being validated by crude prices; Nymex Crude may decline by 10-15 percent

#5 May see big moves in gold prices over the next 12 months

The company has signed a license agreement for a new property, Lemon Tree Hotel, Mira Road, Mumbai. It is scheduled to open in FY26 and will be managed by Carnation Hotels, a wholly-owned subsidiary of Lemon Tree Hotels.

Shares of upstream oil companies--Oil and Natural Gas Corporation, Oil India and Hindustan Oil Exploration Company--fell upto 5 percent in opening trade on September 11 tracking a slump in Brent crude prices to their lowest level in almost three years. Brent crude prices slipped below $70 per barrel overnight for the first time since December 2021, as concerns over weak demand amid moderating economic growth and rising electric vehicle adoption weighed heavily. READ MORE

The company in collaboration with Kromberg and Schubert AG, Germany, set up Kromberg Schubert Motherson Sumi System in October 1995, to manufacture integrated wiring harnesses to supply to BMW-Hero Motors joint venture for 650cc motorcycles

Automotive component manufacturer Sona BLW Precision Forgings Ltd has successfully raised Rs 2,400 crore through a Qualified Institutional Placement (QIP) of equity shares, the company said in a late-evening stock exchange filing on Monday, 9 September.

Among the major investors, SBI Mutual Fund acquired a quarter of Sona BLW’s equity issue for Rs 600 crore, while an ICICI Prudential fund secured 8.33 percent of the shares on offer for Rs 200 crore. (Read More)

Brokerage firm UBS Securities retained its 'sell' call on Tata Motors, citing further downside risk from margin slippage at the company's luxury arm Jaguar Land Rover and within domestic passenger vehicles segment. Accordingly, UBS retained its price target of Rs 825 for Tata Motors stock, implying a downside potential of over 20 percent from the previous close.

The brokerage remains cautious as it believes the extended successful run of JLR's premium models--Defender, Range Rover and Range Rover Sport have started to moderate. It noted that the orderbook for this trio has now hit pre-COVID levels and soon expects discounts for Range Rover to rise. (Read More)

On the back of mixed global cues, the Indian markets opened marginally lower on September 11 with Nifty around 25,000.

The Sensex was down 94 points or 0.1 percent at 81,860, and the Nifty was down 7.1 points or 0.03 percent at 25,034. About 1554 shares advanced, 550 shares declined, and 161 shares unchanged.

Asian Paints, NTPC, PowerGrid, and TCS emerged as the top gainers, while Tata Motors, SBI, and Titan ranked among the top losers.

Indian rupee opened flat at 83.97 per dollar on September 11 from 83.98 previous close.

Benchmark indices are trading marginally higher in the pre-opening session.

The Sensex was up 102.24 points or 0.12 percent at 82,023.74, and the Nifty was up 14.55 points or 0.06 percent at 25,055.65.

Electronics manufacturing player Dixon Technologies got a thumbs up from two international brokerages following its subsidiary Padget Electronics' deal with HP India to manufacture notebooks, desktops, and all-in-one PCs for HP.

Foreign broking firm CLSA said Dixon Technologies has outlined a strong near- and medium-term growth outlook. In the near-term, new customer acquisition and gaining wallet share in mobile phones is likely to drive growth. (Read more)

Yesterday’s bullish movement on Dalal Street suggests concerns about a US economic slowdown may be overstated, though technical strength in Nifty will only be confirmed above 25,333.65. Today, Nifty may show volatility, with negative cues from Wall Street, including stress in US banking stocks and a decline in trading revenue at Goldman Sachs, offset by falling WTI oil prices and FIIs buying Rs 2,208 crore.

Bullish outlook on BERGER PAINTS, GODREJ CP, SYNGENE INTERNATIONAL, and BRITANNIA; recommended buying on intraday dips with an interweek perspective. Top stock pick: SYNGENE INTERNATIONAL (CMP 929): Buy between 900-910, stop at 871, targets 947/973, aggressive target at 1,001 (intermonth strategy), backed by higher highs/lows and bullish momentum oscillators.

The Rs 6,560-crore public issue of Bajaj Housing Finance has been subscribed over 7.5 times at the end of Day 2 of bidding on September 11. The non-institutional investors’ (NII) quota of the Bajaj Housing Finance IPO continued to see robust demand, with 16.45 times subscription. The retail individual investors’ (RII) quota was subscribed 3.83 times, while the category for qualified institutional buyers (QIBs) received 7.46 times subscription.

Northern ARC Capital has announced a price band of Rs 249-263 per share for its upcoming initial public offering (IPO), which will be open for subscription from September 16 to 19. The IPO includes a fresh issue worth Rs 500 crore and an offer for sale (OFS) of up to 10.53 million shares by existing shareholders and promoters, valued at Rs 277 crore at the upper price band. The total issue size is Rs 777 crore. Anchor bidding will commence on September 13. The basis of allotment will be finalized on September 20, refunds will begin on September 23, and the stock is set to list on exchanges on September 24.

#1 RIL sets Sep 20 as last date for paying call money on partly paid shares

#2 Jubilant Pharmova: USFDA classifies Washington arm as Voluntary Action Indicated

#3 OIL, OVL & KABIL sign MoU with IRH, UAE for global co-operation

#4 Lemon Tree Hotels signs licence agreement for 108 rooms hotel in Mumbai

#5 UBS On Tata Motors: Sell call, target Rs 825/sh

#6 Ramco Systems launches Aviation Software 6.0 for smarter aircraft management

#7 Astra Microwave in strategic alliance with Premier Explosives to develop and sell multiple products jointly

#8 Bombay Dyeing - Japan's Sumitomo acquires land parcel in Mumbai's Worli for Rs 440 cr

#9 Inox India gets patent rights for cryogenic liquid-based variable temperature cold storage unit & method

#10 Sandur Manganese board to meet on Sep 16 to consider fund raising

Asian stocks fell Wednesday amid growth concerns ahead of a key US inflation report and market reactions to the presidential debate. The yen strengthened after a Bank of Japan board member signaled potential rate hikes. Regional equities dropped for a third session, led by declines in Japan and Hong Kong, as oil prices fell below $70 and Treasury yields declined. The dollar weakened while the yen reached its highest level against the greenback since January. Traders also assessed the implications of the debate between Vice President Kamala Harris and former President Donald Trump on future economic policies.

#1 US markets end mixed ahead of CPI data

#2 Dow underperforms; Nasdaq gains led by gains in Nvidia

#3 Headline CPI expected to rise 0.2% month on month, 2.6% YoY

#4 Asian markets open lower despite positive cues from Wall Street

#5 Japan business confidence in drops to seven-month low

#6 Dollar index at 1-month high

#7 US 10-year yield dips below 3.7%

#8 Oil at lowest level since December 2021 as OPEC cuts forecast; Brent below $70

#9 Gold holds firm above $2,500 as US inflation data looms

#10 GIFT Nifty signals muted but negative start

Trends on GIFT Nifty suggest a negative start for the broader Indian market, with a dip of 24.5 points or 0.1 percent. Nifty futures are trading near the 25,090.5 level.

Crude prices bounced on Wednesday as concerns about Tropical Storm Francine disrupting supply of oil outweighed worries about demand. Brent crude futures climbed 39 cents, or 0.6%, to $69.58 a barrel by 0031 GMT while U.S. crude futures were at $66.19 a barrel, up 44 cents, or 0.7%.

Both benchmarks fell nearly $3 on Tuesday, with Brent hitting its lowest level since December 2021 and WTI falling to a May 2023 trough, after OPEC+ revised down its demand forecast for this year and 2025.

U.S. equities mostly closed higher Tuesday after a volatile session, with traders eyeing consumer inflation data for clues on the Federal Reserve's next move. The S&P 500 rose 0.5%, adding to Monday's 1.2% gain, with nine of the 11 sectors in the green, led by real estate. The Nasdaq 100 gained 0.9%, while the Dow Jones dipped 0.2%.

Both the Sensex and Nifty rose for a second session this week on September 10, driven by gains in IT, telecom, power, and healthcare sectors. The Sensex climbed 362 points to 81,921, and the Nifty increased by 105 points to 25,041. Market breadth was positive with 2,473 stocks advancing versus 1,300 declining.