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PremiumSensex, Nifty closed nearly 0.71% higher on Thursday. Inflation in India is likely to ease only gradually, Reserve Bank of India Deputy Governor Michael Patra said on Thursday, adding that the outlook on growth and inflation will help determine the future course of monetary policy. Asian markets struggled Thursday to recover from the previous day's sell-off, with Hong Kong dragged by further losses in casinos as well as tech firms following government crackdowns on the sectors.
The rupee slipped 2 paise to close at 73.52 (provisional) against the US currency on Thursday, tracking the strengthening of the greenback in the overseas markets. Forex traders said a bullish trend in the domestic equities and sustained foreign fund inflows supported the local unit, while firm crude oil prices restricted the gains. At the interbank foreign exchange market, the domestic currency opened flat at 73.51, witnessed an intra-day high of 73.34 and a low of 73.52 against the American currency during day trade. The local unit finally settled for the day at 73.52, down 2 paise over its previous close. On Wednesday, the rupee had settled at 73.50 against the US dollar. (PTI)
"Nifty made a bullish bar for the second consecutive day, it made a new all time high of 17,644. It closed at 17,626 up by 107 points. Banknifty also gave a very strong bullish move today, it closed positive by 844 points since yesterday's close. Nifty is an impulse wave as per the elliott wave theory and will be making new all time highs in the coming days. Nifty may test 17,700 and 17,730 in the next few trading sessions. 17,425-17,450 range will act as a strong support. Traders can use any correction in the markets to initiate long positions with strict stop loss."
The Sensex closed at 59,141.16, up 417.96 points, or 0.71%, while Nifty was at 17,629.50, up 110.05 points, or 0.63%. ITC, RIL were top gainers
Airtel has revised some of its popular plans to add a Disney+ Hotstar Mobile subscription at no extra cost for its prepaid customers. The new benefit has been added to three plans worth ₹499, ₹699 and ₹2,798. Apart from the benefits of subscription, the users will be able to avail telecom features. (Read more)
A pick-up in consumer demand, record-low interest rates and improving prospects for the manufacturing sector will probably fuel the rally in Indian stocks, even as the dizzying pace of gains increases risks for the economy. These are the conclusions of new research from Bloomberg Intelligence and Bloomberg Economics after the NSE Nifty 50 Index climbed 130% to a record from lows touched in March 2020, supported by the central bank’s liquidity injections, millions of new retail investors, and the regulatory crackdown in China. The rally has added roughly 1 percentage point to GDP growth each quarter since October-December. (Read more)
India is the second-largest technology hub for Amazon globally and its teams are powering innovations not only for customers in the country but globally as well, a top company executive said on Thursday. Speaking at Amazon India Career Day, Amazon Global Senior Vice President and Country Head India Amit Agarwal said the e-commerce company employs over one lakh professionals in India across diverse areas from engineering, supply chain, content creation, marketing, video and others. "India is also the second-largest technology hub for Amazon globally, with some of the most talented software developers, product managers, machine learning scientists, and research scientists as part of the team," he said. (PTI)
Multiplex chains that refused to screen the Hindi version of Kangana Ranaut’s Thalaivii in north India are in for bigger trouble as their dispute with producers over the theatrical and digital release gaps for new films aggravates. At least three film trade analysts said several movies featuring big stars are likely to ask for a shorter time span between their release in theatres and on digital platforms in the interest of business given that cinemas are yet to bounce back. (Read more)
Insights
Bank Nifty has seen marginal decrease in Open Interest of -0.10% with marginal increase in price of 0.53% indicating Short Covering. Nifty has seen an increase in Open Interest of 2.79% with an increase in price of 0.99% indicating Long Build Up. Option data indicates a probable trading range of Bank Nifty for the day between 37,300 to 36,400 & that for NIfty at 17,350 to 17,650.
BANK NIFTY Strategy: Call Spread
View: Moderately Bullish.
Rationale: Traders could initiate this spread strategy to make modest returns with limited risk and reward. The spread suggested consists of buying one lot of 37,000 strike CALL option and simultaneously selling one lot of 37,500 strike CALL Option.
SBI announces festive offers, home loans at 6.70% irrespective of loan amount. Also, it’s decided to waive off processing fees completely and even offer interest concession based on credit score.
India's gasoil consumption slowed in the first half of September from the previous month, staying below pre-COVID levels as a pick-up in monsoon rains hit mobility and demand for fuel from the agriculture sector, preliminary sales data showed. Diesel sales by the country's state fuel retailers came in at 2.1 million tonnes during Sept. 1-15, a decline of about 1.5% from last year and down 6.8% from the same period in 2019, the data showed. State retailers Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp Ltd own about 90% of the country's retail fuel outlets.
Ford Motor Co. dealers in India face potential legal action from customers after the U.S. auto giant decided to shut its factories in the country. Dealers will likely face “legal complications" given that Indian consumer law makes them liable after a manufacturer exits, Vinkesh Gulati, president of the Federation of Automobile Dealers Associations, said in an interview with Bloomberg TV. “We expect Ford to give some compensation to dealers and plan something in future so that dealers aren’t in a legal strangle against customers in consumer court cases for their service responsibility," Gulati said.
Saregama India's stock was trading at ₹4,095.00 each, down 1.99%. The company has approved a ₹7.5 bn fundraise.
Finance minister Nirmala Sitharaman on Thursday will likely announce government guarantee of up to Rs31,000 crore for the bad bank--National Asset Reconstruction Company Ltd (NARCL)--which has been set up to resolve the menace of bad loans plaguing public sector banks. (Read more)
PFC launched issuance of €300 million, 1.841%, notes due 2028 under the $8 billion global medium term note programme. The notes have been priced on 13 Sep 2021 and carry a coupon of 1.841% per annum payable in arrear on each interest payment date. The settlement date for the notes is expected to be 21 September 2021.
Electric vehicle manufacturers’ body SMEV on Thursday said the production-linked incentive (PLI) scheme for auto and auto-components will build a self-sustaining framework for the e-mobility industry. The Union Cabinet has on Wednesday approved a ₹26,058 crore PLI scheme for auto, auto-components and drone industries to enhance India's manufacturing capabilities. The scheme will incentivise the emergence of advanced automotive technologies' global supply chain in India, with incentives worth around ₹26,000 crore to be provided to the industry over the next five years. (PTI)
- Production at U.S. factories grew at a slower rate than expected in August as Hurricane Ida forced plant closures and an ongoing microchip shortage curbed motor vehicle output, but manufacturing remains strong amid lean inventories.
- India's Union Cabinet has approved a crucial relief package for the telecom sector. (100% FDI allowed). The government has also approved the production-linked incentive scheme for the auto sector.
- Japan's exports extended double-digit gains in August, led by strong shipments of chip manufacturing equipment, though the pace of growth weakened mainly due to the deepening impact of a COVID-19 resurgence across Asia.
- Australia, UK and the US have announced a new defence partnership to keep a check on China’s growing power in the Indo-Pacific. The alliance, known by its acronym Aukus, would work “hand-in-glove'' to preserve security and stability in the Indo-Pacific.
- U.S. stocks closed higher, as rising crude oil prices boosted energy shares and a raft of positive U.S. data supported those who feel growth in the world’s biggest economy should remain strong.
- Consumer prices in Britain rose by 3.2% in annual terms last month. This was the biggest monthly jump in the annual rate in at least 24 years, largely due to a one-off boost reflecting the "Eat Out to Help Out" scheme that pushed down restaurant meal prices last year.
The Supreme Court of India has dismissed a Special Leave Petition (SLP) filed by the Government of Maharashtra against Man Infra. The Bombay high court on 14 September ordered and directed the Prothonotary and senior master, of the high court, to release ₹357.79 crore plus accrued interest, the amount deposited with it by the state government.
Bullion Outlook
Gold prices started Wednesday’s trade on a weak note by opening slightly lower and prices fell further for most of the session till low of ₹ 46875. Prices corrected slightly in the last session, reflecting overall uncertainty over the path the Fed may adopt at its meeting next week after softer U.S. inflation data. Hence, we expect Gold prices to consolidate in the range of ₹ 46800-47300 levels for the day.
Energy Outlook
Crude oil prices opened strongly higher with gap on Wednesday and prices rose further for most of the session till high of ₹ 5376. Prices rallied strongly in the last session as U.S. crude oil and fuel stockpiles dropped sharply last week, as refiners in the U.S. Gulf region and oil facilities offshore were still recovering from Hurricane Ida’s hit late August. Therefore, we expect Crude prices to remain positive towards ₹ 5450 level for the day.
Adani Transmission Ltd (ATL), India’s largest private sector power transmission company and part of the diversified Adani Group, has received the Letter of Intent (LoI) for the acquisition of MP Power Transmission Package-II Ltd, incorporated by REC Power Development and Consultancy Ltd. ATL will build, own, operate and maintain the transmission project in the state of Madhya Pradesh for a period of 35 years. ATL will invest Rs1,200cr towards the project. This is a positive development for the company, which would support revenue growth going ahead.
ITC share price today surged near to its 52-week high of ₹239 per share as the stock made a surprise rally of 7% in early deals on Thursday after being somewhat of a dull performer amid the recent bull market rally. The cigarette-to-hotel conglomerate's scrip has remained in a rangebound trend and is up around just 8% this year as compared to a nearly 23% rise in benchmark Sensex. (Read more)
The Union Cabinet approved a 4-year moratorium period on dues and rationalized the definition of adjusted gross revenue (AGR). This reform will change the framework of the entire telecom industry while broadening it.
· Impact on Indian Telecom Services companies: We believe the relief package is a welcome step towards strengthening the industry and ensuring the survival of Telecom operators as well as maintaining healthy competition for the benefit of the customers. The removal of non-telecom revenues from the definition of AGR and the removal of penalty has been a much-needed change. This extra burden has hurt the telecom industry in the past but the new reform will now pave the way for telecom players to make higher capital investments.
Shares of Vodafone Idea Ltd surged nearly 20% on Thursday while banks with exposure to the embattled telecom firm also climbed, a day after India's federal cabinet approved a relief package for the cash-strapped sector. The relief package includes a four-year moratorium on airwaves payments due to the government, raising the tenure of airwaves held by firms to 30 years from 20, and completely free sharing of spectrum between carriers
Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) on Thursday forayed into the vehicle leasing and subscription business. The new vertical would operate under the brand name ‘Quiklyz’, denoting the changing mindset on mobility, it said.
Puravankara's stock was trading ₹109.70 apiece, up 0.92% at 10:56 am. India Ratings and Research (Ind-Ra) has upgraded Puravankara Ltd's long-term Issuer rating to 'INDA-' from 'IND BBB+'. The outlook is positive.
Investors counting on India’s upcoming festival season to help revive the fortunes of the nation’s automobile stocks could be in for a disappointment. Below-normal monsoon rains that have impacted rural demand and the risk of an impending third coronavirus wave are posing a challenge for Indian vehicle makers. That’s in addition to the problems of rising input costs and a semiconductor shortage the global auto industry is faced with. A gauge of Indian automobile shares has lost 2.5% so far this quarter, the only loser among the BSE Ltd.’s 19 sector groups. The benchmark S&P BSE Sensex has rallied 12% during this period, while the MSCI World Automobiles Index is up 3.4%. (Bloomberg)
Malabar Gold and Diamonds will be establishing a gold and diamond jewellery manufacturing unit along with a refinery in Telangana with an estimated investment of ₹750 crore. The investment announcement was made during a meeting Malabar Group Chairman MP Ahmed and a team of representatives had with Telangana Minister for IT and Industries KT Rama Rao here, a press release said on Wednesday. (PTI)
Gold prices inched lower on Thursday as cautious investors awaited signals on the U.S. Federal Reserve's timeline on withdrawal of its pandemic-era stimulus, with analysts expecting a further slide in prices on a formal announcement. Bullion is viewed as a hedge against the inflation and currency debasement likely from widespread stimulus. The Fed's tapering could tackle both those conditions, diminishing gold's appeal. Spot gold was down 0.1% at $1,790.42 per ounce by 0424 GMT, while U.S. gold futures eased 0.1% to $1,791.70.
"In the current uptrend the index achieved its first target of 17,550 this morning. There might be a knee jerk reaction from these levels if the Nifty trades below 17,520. If it can sustain above 17,550, the next level would be 17,750. A buy on dips approach can be used to participate in this fierce momentum."
India on Thursday reported 30,470 number of new Covid-19 cases and 431 deaths in 24 hours, the union health ministry said. The country's overall Covid-19 caseload has surged to 3,33,47,325. The number of active cases has declined 8,164, accounting for only 1.03% of the total Covid-19 cases. Currently, India has 3,42,923 active cases and the death toll has risen to 4,43,928. In the past day, 38,303 people have recovered from the diseases. The total number of patients recuperated from the covid-19 stands at 3,25,60,474. (Read more)
The Sensex soared to a new high of 58,881.04, up 157.84 points, or 0.27% at market opening, while Nifty was at 17,539.20, up 19.75 points, or 0.11%. Metals, realty surge
Tata said it aimed to replace steel production in coal-fired blast furnaces by a process fuelled by 'green' hydrogen, derived from wind power, by 2030. (Read more)
A list of nine stocks/securities have been put under the futures and options (F&O) ban by the National Stock Exchange (NSE) on Thursday, September 16, 2021. These securities are banned under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE. Indian Railway Catering and Tourism Corporation (IRCTC), Vodafone Idea (Vi), Canara Bank, Exide Industries, LIC Housing Finance, Escorts, Sun TV and National Aluminium Company (Nalco) continue to be under the ban whereas Zee Entertainment Enterprises has been added in the list of stocks under F&O ban today. Shares of Zee Entertainment Enterprises Limited zoomed in past two trading sessions after Rakesh Jhunjhunwala's Rare Enterprises and BofA Securities Europe SA bought its shares through open market transactions. (Read more)
"Nifty is expected to open flat to negative, down by 15 points around 17,500. Yesterday Nifty gave a strong bullish breakout with good volumes. Nifty may test 17,580 and 17,610 range in the next few trading sessions. Traders can use buy on dips strategy keeping strict stop loss. The previous resistance zone of 17,425-17,450 will act as a strong support zone for Nifty."
Adani Transmission, CIL, Tata group, SpiceJet, Hindustan Copper among other stocks may be in the news today. (Read more)
Markets are likely to be stay firm on Thursday while trends in SGX Nifty indicate a mute opening of Indian benchmark indices. On Wednesday, the BSE Sensex ended at 58,723.20, up 476.11 points or 0.82% and the Nifty was at 17,519.45, up 139.45 point or 0.80%.
Tata Steel on Wednesday said it would convert its heavily polluting steel mill in the Netherlands to a cleaner one powered by natural gas or hydrogen by the end of the decade, if the Dutch government would shoulder part of the costs. In a bid to reduce its massive emissions of climate heating carbon dioxide (CO2), Tata said it aimed to replace steel production in coal-fired blast furnaces by a process fuelled by 'green' hydrogen, derived from wind power, by 2030. But this could only happen with enough government support, Tata's Dutch subsidiary said in a statement.
Oil prices slipped on Thursday, but kept most of the previous day's gains after a larger-than-expected drawdown in crude oil stocks in the United States, the world's largest oil consumer. Brent crude oil fell 13 cents, or 0.2%, to $75.33 a barrel by 0128 GMT, after settling up 2.5% the previous day. U.S. West Texas Intermediate (WTI) crude slipped 12 cents, or 0.2%, to $72.49, after settling 3.1% higher on Wednesday. (Reuters)
Asian stocks were steady early Thursday amid a climb in energy shares and as some of the anxiety about the recovery from the pandemic eased. Treasury yields held an advance. Japanese and South Korean stocks fluctuated while Australia rose. U.S. futures were little changed after the S&P 500 posted the biggest jump since August, avoiding a break of its 50-day moving average. The dollar remained lower. Oil steadied after rallying on a U.S. report showing a bigger-than-expected decline in crude stockpiles, signaling a tightening market. New Zealand’s dollar and bond yields advanced after economic growth beat estimates. Chinese stocks listed in the U.S. slid a sixth day and U.S. casino firms with exposure to Macau tumbled. Officials have signaled tighter curbs on operators in the gaming hub, again spotlighting Beijing’s regulatory curbs. Traders are also monitoring the fate of cash-strapped developer China Evergrande Group.
S&P 500 futures were flat as of 9:26 a.m. in Tokyo. The S&P 500 rose 0.9%
Nasdaq 100 futures were little changed. The Nasdaq 100 rose 0.8%
Japan’s Topix index was steady
Australia’s S&P/ASX 200 Index added 0.4%
South Korea’s Kospi index fell 0.2%
Hang Seng Index futures were little changed earlier
Stocks rose the most in almost three weeks as the concern that has weighed on investor sentiment about a slowdown in economic growth eased. Crude oil jump and bond yields rose. Energy shares helped push the S&P 500 up 0.9% and into positive territory for only the second time in eight trading sessions. The tech-heavy Nasdaq 100 rose for the first time in more than a week. Treasuries fell after rallying Tuesday on a lower-than-forecast inflation report, while the dollar weakened against most major peers. After surging 20% to record highs through the first eight months of the year, the S&P 500 began September on a losing note as concern increased that a pullback in stimulus and the delta variant of the Covid 19 virus risked derailing the recovery from the pandemic. The S&P hasn’t closed higher by 1% or more since July 23.
The S&P 500 rose 0.8% as of 4:04 p.m. New York time
The Nasdaq 100 rose 0.8%
The Dow Jones Industrial Average rose 0.7%
The MSCI World index rose 0.3%
