Share Market HIGHLIGHTS: Nifty ends above 17350, but in red, Sensex falls 127 pts; RIL top Sensex loser – The Financial Express

BSE Sensex fell 127 points or 0.22 per cent down at 58,177, while the Nifty 50 index ended 14 points lower at 17,355

The market witnessed some lackluster movement and an attempt to hold the level. The market witnessed a small correction and a reversal from the support of Nifty 50 Index level of 17250. It is suggested that 17200-17250 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 17200-17250, it can witness higher levels of 17500. The technical indicator suggests a volatile movement in the market in a small range between 17200-17500. Ashis Biswas, Head of Technical Research at CapitalVia Global Research

Domestic stock market rally may witness some hiccups as the market cycle transitions to the mid-cycle phase, where returns are expected to be moderate and policy stimulus is withdrawn.  “Expect turbulence as the Fed tapers amid weak global growth. But it’s likely to be a hiccup rather than 2009 cycle-type roadblock, as better domestic and global macro environment limit dislocations,” said domestic brokerage firm Edelweiss. So far the 125% rally in Sensex and Nifty since March 2020 lows have been termed as an early-cycle wherein markets deliver outsized returns from depressed levels with PE re-rating rather than earnings accounting for the bulk of returns. However, things are now expected to change.

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RIL, ICICI Bank, HDFC Bank, Hindustan Unilever Ltd (HUL), Axis Bank, M&M and IndusInd Bank were among top BSE Sensex draggers

Domestic stock market rally may witness some hiccups as the market cycle transitions to the mid-cycle phase, where returns are expected to be moderate and policy stimulus is withdrawn.  “Expect turbulence as the Fed tapers amid weak global growth. But it’s likely to be a hiccup rather than 2009 cycle-type roadblock, as better domestic and global macro environment limit dislocations,” said domestic brokerage firm Edelweiss. So far the 125% rally in Sensex and Nifty since March 2020 lows have been termed as an early-cycle wherein markets deliver outsized returns from depressed levels with PE re-rating rather than earnings accounting for the bulk of returns. However, things are now expected to change.

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India Inc over the recent years has propelled and nurtured a robust start-up eco-system. With innovation at the core, several start-ups have achieved notable success, thereby fueling the overall economic growth. It is, however, incumbent on these start-ups to attract and retain the best talent in the marketplace, notwithstanding their limited resources. Employee Stock Option Plans (ESOPs) can play a vital role here, as a part of the compensation strategy.

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RIL share price fell 2.25 per cent to Rs 2,370.85 apiece on BSE intraday after the company delayed the launch of its JioPhone Next launch, which was scheduled to take place on Ganesh Chaturthi, 10 September 2021. The phone which was developed in partnership with Google, has been delayed due to the ongoing semiconductor shortage globally. So far in the day, Reliance Industries Ltd stock has hit a day’s high of Rs 2,430 apiece. Analysts say that post a strong rally in RIL stock, there is a small profit booking. “The major support levels are Rs 2350-2360,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online.

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Dental materials manufacturers, Prevest DenPro Limited’s IPO opens on Wednesday, September 15, 2021 and closes on Friday, September 17, 2021 at a price band of Rs 82-84 with issue size of 3,168,000 equity shares of the face value of Rs 10 each. The issue may be listed on Sep 27, 2021. The Book Running Lead Manager to the issue is Hem Securities. The net proceeds from the Issue will be utilised towards the purchase of machinery, equipment, utilities for the manufacturing of a proposed additional line of products, R&D unit, modernisation of existing manufacturing operations and general corporate purpose. The Company is diversifying its operations with launch of new products in segment of hygiene (sanitizers and disinfectants), oral hygiene products (mouth washes and mouth rinses), oral care products (medicated ointments, gels and creams for dental treatment) and biomaterials (i.e. bone augmentation materials).

Amazon India today announced the launch of its largest Fulfilment Centre (FC) in the country with a storage capacity of more than 2.4 million cubic feet in the city of Bangalore. With this launch, in the State of Karnataka, Amazon India has increased its overall storage capacity by 60% and now, has more than 6.5 million cubic feet of storage space spread across 5 fulfilment centres. Ahead of the festive season, this significant expansion in infrastructure will give over 42,000 sellers in Karnataka greater than before access to a larger customer base across the country. This expansion will also create diverse and meaningful work opportunities for individuals from all backgrounds, especially for locals in the nearby regions. These will entail a variety of roles in its operations network, including full time and part time opportunities, with opportunities available to them for training and upskilling

Stock market investors in India, to a large extent, have their funds exposed to a single economy. Every global economy has its own weaknesses and strengths and there are certain risks inherent to the economies. Also, not all economies tend to grow or show signs of fragility at the same time. While the jury is still out, whether the stock market reflects the true picture of the economy or not, having a pie in the non-domestic economy is a step towards diversification. With funds diversified across geographies, the probability of risk adjusted returns remains high in case of a financial mishap in any one economy.

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Jet Airways will restart domestic operations by the first quarter of 2022 and short haul international flights by the last quarter of the next year, Jalan Kalrock Consortium, the winning bidder for the grounded airline, stated on Monday. The first flight of Jet Airways would be on Delhi-Mumbai route, it mentioned, adding that the airline would now be headquartered in Delhi instead of Mumbai.

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Sensex was down 80 points, recouping losses while Nifty 50 was down just 10 points and holding above 17,350 as Benchmark indices trimmed losses.

Ami Organics is scheduled to make its stock market debut on Tuesday, 14 September, after receiving over 64 times subscription during IPO. Ahead of listing, Ami Organics shares were seen quoting at a premium of Rs 157 over the issue price of Rs 610 in the primary market. On Monday, the shares of the specialty chemical firm were trading at Rs 767 apiece, a premium of over 25 per cent over the IPO price, in the grey market, according to the people who deal in shares of unlisted companies. Upon its stock market debut, Ami Organics will join the listed industry peers such as Aarti Industries, Hikal, Valiant Organics, Vinati Organics, Neuland Organics and Atul Ltd.

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India could be included in the global bond index in early 2022, a move that may attract $170-250 billion in bond inflows for the country in the next decade, said Morgan Stanley in a recent note. Investors have been staying away from the Indian bond market in the past few years given the widening fiscal deficit, above-target inflation and gradually weakening currency. However, recent macroeconomic stability could change this in early 2022. India’s inclusion in the global bond index is likely to have profound implications for the economy, FX, bond yields, and equity markets, according to analysts at Morgan Stanley. 

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The Indian benchmark started with a flat opening with negative bias in the market. Asian markets made a sluggish start packed with major U.S and Chinese economic data. Traders will get concerned with the rise in unemployment rate, periodically published by National Statistical Office (NSO). Investors will remain cautious about the key inflation data due later in the day. Sentiments may get optimism as RBI Governor said many fast indicators are showing an uptick in economic activity and the Reserve Bank is quite optimistic about its 9.5 percent GDP growth estimate for FY 21-22 at present. Our research suggests 16200 will be an important support level in the market for the market to remain positive in the short term. Gaurav Garg, Head of Research, CapitalVia Global Research

Vijay Diagnostic Centre to list on stock exchanges on 14th September 2021, the overall retail portion got subscribed 1.09 times so it was expected that almost all the investors got the allotment. Vijaya Diagnostic IPO is priced at Price to Earnings of 64.3 times and EV/EBITDA of 30 times at the upper price band of the IPO based on FY2021 numbers, which is in line with the listed peer group. We are not expecting any big listing gain from Vijaya Diagnostic Centre Limited IPO as we believe that all the short term positive has been priced in the IPO price i.e Rs 531. If we look at the current Grey Market Premium, as per market news GMP is at Rs 5 i.e 1% at the upper price band of the IPO. We suggest retail investors who got the allotment to sell the stock at a price range of Rs 540-560 and the investors who haven’t received the allotment should not buy the stock at listing. Yash Gupta, Equity Research Analyst, Angel Broking

Considering the FY-21 adjusted EPS of Rs.21.02 on post-issue basis, the company is going to list at a P/E of 35.40 with a market cap of Rs.38,225 mn while its peers namely Endurance Technologies and Minda Industries are trading at a P/E of 33.56 and 56.63 respectively. We assign “Subscribe” rating to this IPO as the company is a leading supplier of precision engineered components that are gaining market share across automotive and non-automotive sectors and is available at reasonable valuation as compared to its peers. Marwadi Shares and Finance

We expect economic activity to continue improving, especially around the festive season as the vaccination trend continues to improve. While we are optimistic on the uptrend on growth going ahead, we remain wary of the risk of a third wave before a larger part of the population gets fully vaccinated. We retain our FY2022E GDP estimate at 9% (against RBI’s estimate of 9.5%) and FY2023E GDP estimate at 6.5% (Exhibit 6). On the policy front, we believe that the RBI will prefer to nurture the nascent recovery with retaining its focus on growth in the near term, especially as inflation is expected to moderate in the months ahead. We expect the RBI to further increase the quantum and tenure of VRRR in the October policy, though we do not expect any significant impact on money market rates given that liquidity surplus is expected to remain comfortably ample. Given the surplus liquidity and the need to gradually normalize policy we expect RBI to reduce the amount to be purchased under GSAP-3 in the October policy. Kotak Institutional Equities

The markets opened on a soft note this morning. This does not come as a surprise considering the sharp run up with no correction. The support for the Nifty is currently at 17250 and has long as that holds, traders can consider a buy on dips approach for a target of 17450. There is every possibility the Nifty also becomes sideways and trades within this range of 17250-17450. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The central bank’s competent move to keep the Rupee in a tight range and also keep the exporter’s interest intact suggests that the bottom for the USDINR pair is likely to remain limited upto 73.00 mark. Any up move on account of stronger USD and importer’s buying could be limited upto 74-74.20 levels as inflows will start dominating over weaker currency value. Overall, the expected short-term range for the pair is 73.00 to 74.20 zone. Amit Pabari, managing director, CR Forex Advisors

Structurally, our broader positive stance is intact with Nifty gradually heading to 17600 in September 2021 as it is the price parity of July-August rally (15515-16700), projected from mid-August low of 16376. Sectoral churn amid consolidation would make overall strength healthy going ahead.

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Commodity prices traded mixed with most of the commodities in non-agro segment extended gains for the week except bullion. Bullion prices traded lower on stronger dollar and FED tapering expectations. Base metals gained on strong demand outlook with unchanged ECB policy and supply concerns. Crude oil prices extended weekly gains on slower than expected output recovery while the region is facing another hurricane threat.

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Except for Nifty Media, Nifty Metal and Nifty Realty, all the sectoral indices were trading in the negative territory. Bank Nifty fell over half a per cent to 36483

Housing Development Finance Corporation (HDFC), Maruti Suzuki, Tata Consultancy Services (TCS), Tata Steel, Bajaj Auto, Bharti Airtel were among BSE Sensex leaders

HCL Tech, Reliance Industries Ltd (RIL), ICICI Bank, Nestle India, Infosys, Tech Mahindra, Bajaj Finance were among top BSE Sensex losers

BSE Sensex fell 173 points or 0.30 per cent to 58,132. while Nifty 50 index gave up 17350, fallinf 41 points or 0.24 per cent

If the Nifty 50 breaks below 17300 level it would witness selling which would take the index towards 17200-17100. Nifty is trading above 20 and 50 day SMAs indicating positive bias in the short to medium term. Nifty continues to remain in an uptrend in the medium and long term, so buying on dips continues to be our preferred strategy.

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Nifty 50 has been trapped within a very narrow range and has formed four small candles during the last four trading sessions, which can be indicated as a spinning top formation or indecision on the daily time frame. Since July 28, the benchmark index is trading in a rising channel pattern and continues to trade in a higher top higher bottoms formation. On September 6, prices register their lifetime high of 17429 and are capped under the upper band of the rising channel pattern on the daily interval.

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Nifty futures were trading 84 points or half a per cent down at 17,356.50 on Singaporean Exchange on Monday. In the previous session, Sensex closed 54.81 points higher at 58,305 while Nifty 50 added 15 points to end at 17,369. Investors will keep a close tab on rupee-dollar trend, Brent crude and Foreign institutional investors (FIIs) movement. Analysts say valuations are also moving beyond comfort zones and hence could lead to bouts of profit booking and increase in volatility. “But the overall sentiment in the domestic market remains positive, supported by improving economic data and positive earnings expectation,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, said.

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Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: Prices of petrol and diesel were left unchanged for the eighth consecutive day on Monday by oil marketing companies. Petrol in the national capital today costs Rs 101.19 per litre, while diesel in the capital city is retailing at Rs 88.62 per litre. The previous cut in Petrol and diesel prices came on September 5 when prices were reduced by 15 paise. So far this month, prices have been decreased twice, trimming the rate by 30 paise. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with benchmark international price and foreign exchange rates.

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The outlook for increased manufacturing activities in the second quarter of this fiscal has been significantly improved, though the cost of doing business and production is rising, according to a survey by industry chamber FICCI. As per FICCI’s latest quarterly survey (Q2) on manufacturing, industry respondents have attributed the hike in production costs primarily to high fixed costs, higher overhead costs for ensuring safety protocols, and a drastic reduction in volumes due to lockdown.

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In overnight trade on Friday, US stocks indices ended in red. The S&P500 fell 34.70 points to 4,458.58. The Dow Jones Industrial Average lost 271.66 points to 34,607.72. The tech-heavy Nasdaq composite dropped 132.76 points to 15,115.49.

Asian stock markets were trading lower in early trade on Monday. Japan’s Nikkei edged 0.25 per cent lower while the Topix index shed 0.16 per cent. South Korea’s Kospi fell 0.22 per cent. 

Domestic equity benchmark indices enter this week’s trading session after having moved marginally higher during the previous week. S&P BSE Sensex currently sits at 58,305 while the NSE Nifty 50 is at 17,369. Midcap and smallcap indices outperformed the benchmarks with both the Nifty Midcap 50 and the Nifty Smallcap 50 zooming more than 1% each. Ahead of the first trading session of the week, SGX Nifty was down deep in red, falling 75 points and hinting at a negative opening for domestic equities. Global cues were also negative after Wall Street equity indices closed in red on Friday.

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