PremiumMarket Closing: On Tuesday, the Sensex closed at 59,667.60, down 410.28 points, or 0.68%, while the Nifty was at 17,748.60, down 106.50 points, or 0.60%. Realty, IT and media stocks were top drags.
Sensex, Nifty closed more than 0.60% on Tuesday. All eyes will be on the core sector data due on Thursday, the capex growth data for the September quarter on Friday as well as the India manufacturing PMI which is also due on Friday US, UK will also release their official GDP figures later this week.
"Nifty and Bank nifty both gave sharp recovery from their days low today. Nifty made a low of 17,576 and then closed at 17,735 down by 120 points since yesterday's close. Nifty is in a strong bullish trend and buying on dips with strict stoploss is the suggested strategy. 17,900-17,950 will act as a resistance zone for Nifty above which Nifty may test 18,040 and 18,080 levels."
On Tuesday, the Sensex closed at 59,667.60, down 410.28 points, or 0.68%, while the Nifty was at 17,748.60, down 106.50 points, or 0.60%. Realty, IT and media stocks were top drags. Metals, pharma and PSU banks stocks closed in green. On the 30-share Sensex, Powergrid, NTPC, Sun Pharma, and six other stocks closed in green, while Airtel, Tech Mahindra, Bajaj Finance, and 18 other stocks closed in red
The Bombay High Court on Tuesday refused to grant bail to Yes Bank founder Rana Kapoor's wife and two daughters in a corruption and cheating case involving private sector lender Dewan Housing Finance Corporation Ltd (DHFL). A single bench of Justice Bharati Dangre rejected the bail applications filed by Kapoor's wife Bindu and daughters Roshini and Radha. (Read more)
The commerce ministry's investigation arm DGTR (Directorate General of Trade Remedies) has recommended an extension of the existing anti-dumping duty imposed on the imports of axle for trailers from China. The anti-dumping duty on the product was imposed by the finance ministry in November 2016. (PTI)
Reliance Jio is offering 20% cashback on certain prepaid plans. Subscribers can find these plans on Jio's official website or the MyJio app. The telecom operator will credit the cashback into the user's Jio account, which can be used for future recharges. (Read more)
India's drug regulator on Tuesday allowed vaccine maker Serum Institute to enrol kids aged 7-11 years for its COVID-19 vaccine trial as the country prepares to protect children from the coronavirus. It has already administered more than 870 million doses to adults among its population of nearly 1.4 billion. "After detailed deliberation, the committee recommended for allowing enrolment of subjects of 7 to 11 years of age group as per the protocol," a subject expert panel of the Central Drugs Standard Control Organization said. (Reuters)
Direct-to-Home service provider Dish TV has got a breather, as the Registrar of Companies has granted the company an extension of two months to call an Annual General Meeting (AGM) from the due date by which it ought to have been held. Subsequently, the Essel Group firm, which is facing a notice from its minority shareholder Yes Bank to remove its Managing Director Jawahar Goel along with four other directors from the board, has postponed the AGM, which was scheduled to be held on September 27. (PTI)
- Weakness in Indian Rupee has been limited due to the relentless rally in Indian equities and expectations surrounding RBI interventions. In addition, probable inflows through MSCI rebalancing shall invite inflows into the system providing support to Rupee.
- As per the All-India Quarterly Establishment-based Employment Survey for the April-June 2021 quarter, India has reported a 29% surge in employment across nine sectors. The nine selected sectors are Manufacturing, Construction, Trade, Transport, Education, Health, Accommodation and Restaurant, IT/ BPO and Financial Services.
- As per the key highlights from the central bank’s quarterly meeting, the People’s Bank of China (PBOC) will try its best to safeguard the healthy development of the real estate market and protect home buyers’ lawful rights.
- Japanese Yen traded near an almost three-month low as rising bond yields in the U.S. and Europe attracted Japanese investors.
- In a recent speech, some US Fed officials have echoed Fed's Powell's comments last week surrounding tapering of the Fed's monthly bond purchases to continue job growth.
- India's central government has decided to keep the market borrowing limit in the second half of FY22 at just over ₹5 lakh crore unchanged, from what was announced at the start of the fiscal, in a bid to contain yields.
Foodtech major Swiggy is changing the organisational structure of its daily milk and eggs subscription service, Supr Daily, and will be bringing it as a business unit under parent Bundl Technologies, Swiggy chief executive Harsha Majety informed employees in an internal memo on Tuesday. As a part of the structure change, Swiggy’s Phani Kishan who was recently elevated as the company’s co-founder will be taking over as the chief executive of Supr Daily. (Read more)
State-backed Life Insurance Corp of India (LIC) is seeking to appoint a chief financial officer, according to a notification on its website, ahead of an initial public offering slated before the end of the fiscal year. The move to hire a CFO follows a decision to re-designate LIC’s top job to chief executive officer from chairman earlier this year. (Read more)
Flipkart-owned fashion e-tailer Myntra said it expects 5.5 million unique customers during its ‘Big Fashion Festival’ from 3-10 October, with a 1.8-fold rise in traffic over the 2020 edition. Of the 5.5 million customers, about 40% of which will come in from smaller cities and towns, and 1.1 million would be first-time shoppers. About 4 million customers shopped for 13 million items during the previous edition of 'Big Fashion Festival' last year.
Digital lending platform, Capital Float, has raised $50 million in equity funding led by Lightrock India, the company said on Tuesday. The company’s existing investors including Sequoia Capital India, Creation Investments and Dinesh Hinduja family office along with Ribbit Capital also participated as a part of the round. New investors including Nubank founder David Vélez, Cred founder Kunal Shah and Pine Labs’ chief executive Amrish Rau also invested in this round. According to the company, it will use the funds to scale its ‘buy now pay later’ (BNPL) platform as well as invest in expanding its partner ecosystem.
Household electronics company Whirlpool of India Ltd has entered into a share purchase agreement with Elica S.p.A. to acquire an additional stake in kitchen appliance maker Elica PB India for $57 million. Whirlpool India initially acquired a 49% equity interest in Elica PB India in 2018. The latest share purchase agreement will now give Whirlpool India an additional 38% equity interest for an estimated $57 million, bringing its total equity ownership to 87% in the company. (Read more)
The Centre may open bids by 29 Sept
Winning bid will need Home minister led GoM nod
Tatas seen as frontrunners
CNBCTV18 reported citing unnamed sources.
Sun Pharma has launched cough relief in India.
Direct-to-consumer beauty brand MyGlamm on Tuesday said it has received ₹255 crore infusion from Trifecta Leaders Fund and others, and has earmarked ₹750 crore to make strategic investments in innovative beauty and personal care brands. (PTI)
CMP –Rs773 Target Price:-Rs900
“Somany Ceramics Ltd (SCL) 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 SCL to report a healthy bottom-line due to strong brand and wide distribution network and improvement in operating margins."
The carmaker says this hike is necessitated to partially offset the increase in input costs.
L&T Infotech's stock was trading at ₹5,843.15 apiece, down 2.37% at 11:51 am. The company has partnereds Eclinicalhealth to accelerate innovation in clinical research.
"Oil prices rose for a third week in a row to a near three-year high as global output disruptions have forced energy companies to pull large amounts of crude out of inventories. Some members of the OPEC+, have struggled to raise output due to under-investment or maintenance delays during the pandemic. Iran, which wants to export more oil, said it will return to talks on resuming compliance with the 2015 Iran nuclear deal “very soon", but gave no specific date. U.S. natural gas futures recovered losses in the last week as some parts of the country start to crank up their heaters with the coming of cooler weather and as near record global gas prices keep demand strong for U.S. liquefied natural gas (LNG) exports."
India's largest cardiac stent maker Sahajanand Medical Technologies Ltd (SMT) has filed a draft red herring prospectus with Securities Exchange Board of India to raise ₹1,500 crore via initial public offerings. Samara Capital backed IPO consists of a fresh issue of ₹410.33 crore and an offer for sale of ₹1,089.67 crore by its existing shareholders and promoters.
Fast-moving consumer goods company Adani Wilmar, which sells a range of edible oils and food products under Fortune brand, is opening offline stores Fortune Mart to sell Fortune and other Adani Wilmar products. (Read more)
Anupam Rasayan's stocks were trading at ₹836.15 apiece, up 4.81% at 10:24 am. The speciality chemicals company has signed a letter of intent worth ₹145 crore with a European multinational to supply a new life science related active ingredient, it said in a regulatory filing. The company will enter into a long-term contract for next three years to supply this product.
Sales acceleration platform Vymo will deploy a cloud-based sales and distribution management platform for Mahindra Rural Housing Finance.
Leading fertilizer company Paradeep Phosphates has received market regulator Securities and Exchange Board of India (Sebi) approval to raise funds through an initial public offering (IPO). The initial share sale will comprise a fresh issue of equity shares worth ₹1,255 crore and an offer for sale (OFS) of up to 12,00,35,800 shares by its existing shareholders and promoters, according to the draft red herring prospectus (DRHP). (Read more)
Construction engineering company Man Infraconstruction on Tuesday announced that the company's board in its meeting next week will consider and recommend bonus issue of shares. The board will also consider and declare Interim Dividend for the Financial Year 2021-22.(Read more)
Gold prices slipped after the U.S. Federal Reserve signalled a sooner-than-expected interest rate hike and easing of its bond purchases by the middle of next year. U.S. central bank said it could start paring bond purchases as soon as November and that half of the Fed officials were ready to raise interest rates next year in response to inflation. However, prices remained supported by safe-haven demand as investors grew wary over cash-strapped China Evergrande’s fate while a softer dollar also lifted the metal’s allure for holders of other currencies. The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, but the underlying trend remained consistent with a steadily recovering labour market.
"The index is facing significant resistance at the current zone of 17,900-17,950. I would consider this to be an important juncture from a trading perspective. If we have to go in for a short term correction, this is the point from where that can happen. On the flip side, if we get past 17,950 on a closing basis, the Nifty can scale up higher and move towards 18,050. It is a wait and watch situation where hasty decisions should be avoided."
Petrol and diesel prices were hiked across India on Tuesday as international oil prices soared to a three-year high. Petrol price was increased by 19 to 25 paise per litre, and diesel price was hiked by 24 to 27 paise per litre, according to price notification by state-run oil companies. Petrol price was increased for the first time after July 17. Diesel registered its fourth hike since September 24 when the state-owned oil firms ended a three-week hiatus in rates. (Read more)
"Nifty is expected to open flat to positive at 17,895, up by 40 points. Since the last 2 trading sessions, Nifty is experiencing profit booking from 17,950 levels. It is important for Nifty to close above 17,950 with high volumes to continue its upward journey. On the lower side Nifty has support in 17,680-17,720 range Traders can use buy on dips with strict stoploss as a strategy in current markets."
Allcargo, BPCL, Power Grid, REC, RIL, Whirpool among other stocks may be in the news today. (Read more)
Markets are expected to stay in consolidation mode on Tuesday while trends in SGX Nifty suggest a flat opening of Indian benchmark indices. On Monday, the BSE Sensex ended at 60,077.88, up 29.41 points. The Nifty closed at 17,855.10, up 1.90 points.
The same eight stocks/securities are under the futures and options (F&O) ban for trade by the National Stock Exchange (NSE) on Tuesday, September 28, 2021, that were put under the list in the previous session. These securities have been banned under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE. (Read more)
Buoyed by robust tax collections, the government on Monday effectively cut its gross borrowing target for the fiscal year by announcing that it will absorb ₹1.59 trillion of additional borrowing for tax compensation to states within its annual target. This, in effect, reduces the annual gross borrowing target to ₹10.46 trillion for the year to 31 March from the budgeted ₹12.05 trillion. (Read more)
Asia stocks fell on Tuesday after a jump in Treasury yields as investors priced in the start of Federal Reserve tapering and elevated energy prices. The dollar edged up. MSCI Inc.’s index of Asia Pacific stocks snapped a three-day advance, with Japan and Australia sliding. Hong Kong opened firmer, while China slipped. U.S. futures declined. Earlier, the tech-heavy Nasdaq 100 underperformed. Investors rotated out of growth stocks as the benchmark 10-year U.S. yield briefly topped 1.5%—a level not seen since June. The S&P 500 dipped. The U.S. two-year yield hit an 18-month high as traders increasingly priced in the prospect of the Fed trimming its $120 billion in monthly asset purchases soon. The 10-year yield pared gains. The dollar edged higher. Oil held onto gains on fears of a global energy crunch. Brent was near the highest in almost three years, while WTI crude hovered above $75 a barrel. Goldman Sachs Group Inc. said Brent could hit $90 by year-end as the market is in a bigger deficit than many realize.
S&P 500 futures were little changed as of 9:12 a.m. in Tokyo. The S&P 500 fell 0.3%
Nasdaq 100 futures dipped. The Nasdaq 100 fell 0.8%
Topix index fell 0.3%
Australia’s S&P/ASX 200 Index fell 0.5%
Kospi index fell 0.1%
Hang Seng Index rose 0.5%
Shanghai Composite Index slipped 0.1%
US government borrowing costs advanced for a sixth week on Monday, hurting tech stocks as investors bet on rising interest rates, while three-year high oil prices ignited the energy sector. An easing in Sino-U.S. tensions and Chinese authorities' decision to pump in more cash to offset the fallout from real estate firm Evergrande's woes offered encouragement to investors. There was also relief that Germany's election outcome ruled out a pure left-wing coalition government. U.S. indices were mixed, with the industrials-heavy Dow Jones index outperforming the Nasdaq index of tech stocks. The Dow Jones Industrial Average rose 71.37 points, or 0.21%, to 34,869.37, the S&P 500 lost 12.37 points, or 0.28%, to 4,443.11 and the Nasdaq Composite dropped 77.73 points, or 0.52%, to 14,969.97.
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