Sensex, Nifty Highlights on October 12: Market indices gave up early gains and ended tad higher on Monday, tracking muted trend from global equities. Extending gains for the eight straight day, Sensex ended 84 points to 40,593 and Nifty rose by 16 points to trade at 11,930. Traders said market turned muted as investors awiated release of the industrial production data for August and CPI inflation for September later today. Meanwhile, September quarterly earnings announcements by IT major Wipro will also set the tone for the stock market today. Last week, bourses gained for the seventh consecutive sessions. During the 7 days of straight gains, Sensex has risen 2,529 points higher, while NSE Nifty has gained by 692 points from 11,222.
Here's a look at the updates of the market action on BSE and NSE today
3. 54PM: Market at close
Market indices gave up early gains and ended tad higher on Monday, tracking muted trend from global equities. Extending gains for the eight straight day, Sensex ended 84 points to 40,593 and Nifty rose by 16 points to trade at 11,930.
3. 40 PM: Rupee ends 12 paise lower
On the currency front, the rupee snapped its three-session winning run and slipped 12 paise to settle at 73.28 against the US dollar on Monday.
3. 33PM: Market update
On markets closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The Nifty took a breather after crossing the psychological 12000 mark. This does not change anything in the short to medium term time frame. The markets continue to show a bullish indication and are aptly positioned to achieve the levels of 12200-12300. With good support at 11750-11800, any correction can be utilised to go long on the index."
3. 28 PM: UTI AMC & Mazgaon Dock IPO
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said," UTI AMC IPO got a subdued response, investors might have been concerned about the recent outflow of AUM and subdued response for SIP of the Mutual fund Industry.
However, investors should hold on to UTI AMC owing to a) It has the potential to regain its market share and increase return ratio. b) Board has approved a higher dividend polity which will also help to some extent improve the return ratio.AMC business is an asset-light business, hence investors can expect steady and healthy dividends. c) UTI AMC has a well-diversified and strong presence in b 30 cities, where SEBI has allowed to charge additional 30 bps and these inflows are sticky. The company has penetrated well into the B30 cities as its 250+ development officers and Chief Agents are based in B30 cities.
The 24% of its overall AUM in B30 geographies, UTI has the highest concentration in B30 markets among the Top 10 AMCs. d) Lower valuation compared to listed peers. However, we expect There is a huge growth potential for the MF industry as the penetration of mutual funds is low in India with an AUM/GDP ratio of 12% as of Dec 2019 vs. that of developed countries at >50%. Lower attraction in real estate by investors due to subdued returns will direct investors from physical assets to financial savings, resulting in MF AUM to grow at a healthy rate."
3. 12PM: GNA Axles update
On its Q2 earnings, Jyoti Roy - DVP- Equity Strategist, Angel Broking said,"While revenues were down YoY they were up by 173.1% QoQ. Gradual opening up of the economy led to the strong sequential rebound in revenues while margin expansion was driven due to lower raw material and continued tight control on other expenses. Overall the company has posted a decent set of numbers given the challenges."
2. 50 PM: Market update
Market indices gve up early gains and traded tad higher by the afternoon session, tracking weakness from global equties. Sensex 47 points to 40,557 and Nifty rose by 5 points to trade at 11,919.
2. 39 PM: Sector update
Sectorally, barring pharma, IT and FMCG, all the other indices traded lower today. Meadia indices fell 2.5%, followed by 2% decline in PSU Bank and 1% fall in metal stocks.
2. 20 PM: ITC share price rises 4%
Share price of ITC surged over 4% on Monday after brokerage house CLSA upgraded the stock to 'buy'. The brokerage has upgraded the stock from Outperform to Buy with a target at Rs 220 per share.
Following the update, shares of ITC climbed 4.38% to an intraday high of Rs 175.2 on BSE against the last closing of Rs 167.85. ITC stock opened at Rs 169.95 and also touched an intraday low of Rs 169.95.
2. 03 PM: Nifty outlook
On Nifty Outlook, Geojit Financial Services said in its note, "Volatility on Friday was held within the 11745-11944 region on anticipated lines, but the relentless attack on the upper extremity, sets up for an upside breakout move today, putting the 12500 move in overdrive. So, with the target in clear sight, the play today would be to watch out for downside surprises,. Ideally, none is expected until some time is spent inside 12070-12230 region, but inability to float above 12018 or a pull back below the same after initial upsides, may delay the onset of upside surges."
1. 46 PM: Global markets
Asian markets are trading mixed as investors focus on Yuan movements after PBoC announced a rule change that would make it cheaper to short the yuan.
U.S. markets closed higher as investors cheered signs of decisive result in upcoming US elections.
European markets closed higher on Friday as investors focused on talks regarding coronavirus relief package in US. UK economy grew 2.1% in August.
1. 29 PM: Market erases gains
Market indices gve up early gains and traded marginally in red after seven day of consecutive gains, tracking weakness from global equties. Sensex fell 85 points to 40,424 and Nifty gave up 18 points to trade at 11,896.
1. 13 PM: Why Vedanta share price crashed 23% today
Vedanta share price crashed 23% today after the firm failed to complete its delisting process. The promoters failed to secure the required number of shares at the end of reverse book building process, the firm said. The company will now remain listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Share price of Vedanta Ltd fell 23.1% intra day to Rs 94 against previous close of Rs 122 on BSE.
1.09 PM: Rupee outlook
Commenting on rupee, Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said, "Last week, Indian Rupee appreciated by 0.07 percent while the Dollar Index decreased by 0.29 percent. RBI decided to keep interest rates unchanged at 4 percent and monetary policy stance accommodative. RBI sees GDP contracting by 9.5 percent in FY21 but can expect recovery from Q4FY21. US FED officials worried that a lack of further fiscal stimulus would jeopardize an economic recovery that was moving faster than expected, according to meeting minutes. The meeting featured extensive discussion about the economic outlook, as members said the economy was doing better than expected in good part because of the fiscal help provided by Washington. That support is in jeopardy as talks have broken down between the White House and congressional Democrats and may not resume before the November election.
12. 56PM: Rupee rises 3 paise to 73.13 per dollar
The Indian rupee gained 3 paise at 73.13 per US dollar on Monday's opening session, tracking softer crude oil prices and sustained buying in domestic equities.
The domestic unit started off the session on a strong note at 73.10, up 6 paise, but later lost ground to quote 73.13 per dollar. Meanwhile, the dollar index, gained 0.02 per cent to 93.07.
12. 42 PM: Mazagon Dock listing
Commenting on Mazagon Dock listing, Amarjeet Maurya - AVP - Mid Caps, Angel Broking said, "Currently Mazagon Dock is trading above the upper price band which is around Rs192 (32% premium). We are recommending booking the profit mainly due to the PSU company ( involved project execution risk due project delay). Considering the current market scenario, we expect volatility in the market. Hence any correction in stock can be a good buying opportunity for long term investors. Going ahead, Defence sector's outlook is positive mainly due to government initiative like the government has taken steps to ban 101 defence items, which clearly indicates government's focus on indigenization to promote and create big opportunities in Indian defence sector. Going ahead, it would be beneficial for companies like MDSL. However, any correction in future would create buying opportunities in stock."
12. 30 PM: Top gainers
SBI, followed by ITC, PowerGrid, Axis Bank, NTPC, ICICI Bank, HDFC and Kotak Bank were among the top gainers on Sensex pack. On the other hand, Bajaj Auto, ONGC, Titan, HDFC Bank and Asian Paints were among the laggards.
12. 25PM: Gold, Silver prices in India on October 12
Gold price traded above Rs 51K mark in India on Monday, after rising consecutively for three-sessions, tracking strength from overseas.
Gold October Futures on the Multi Commodity Exchange traded Rs 266 higher at Rs 51,085 after hitting an intraday high and low of Rs 51,100 and Rs 50,830, respectively.
Silver September Futures traded at Rs 63,900 per kg today, rising Rs 1053 over the last close of Rs 62,853 per kg.
12. 12PM: UTI Asset Management Company share lists at discount of 11% to issue price
UTI Asset Management Company share listed at a discount of 11.50% to its issue price of Rs 554 on BSE today. The share opened at Rs 490.25 causing loss of Rs 63 or 11.50% to investors. Price band of the IPO was fixed at Rs 552 to Rs 554 per share.
12.05PM: JK Cement update
Keshav Lahoti - Associate Equity Analyst, Angel Broking said,"JK Cement has successfully commissioned 0.7 million tonne per annum grey cement grinding capacity and also commenced commercial dispatches from 8th October, 2020. With this the Company has successfully completed its grey cement capacity expansion plan of 4.2 million tonnes per annum comprising Rajasthan (2 MnTPA), Uttar Pradesh (1.5 MnTPA) and Gujarat (0.7 MnTPA). On Friday, Company stock prices hit a new lifetime high. JK Cement is predominantly a north based cement player. Currently, demand in the northern part of India is not majorly impacted due to Covid-19. We expect Company to realize better EBIDTA/tonne in the current scenario majorly due to reduction in cost of power and fuel. We are positive on JK Cement from an investment point of view due to better regional mix in cement portfolio, increased cement capacity and improving demand scenario."
11. 35 AM: Mutliplex update
Multiplex will open from 15th October in most of the states of India after being shut down for 7 long months. As key regions of movie going audience Mumbai and Delhi is expected to open in November so in the initial few weeks, exhibitors will screen old hit movies. Recently, PVR management said that all the old films will be screened at hugely discounted rates. Although, all new content will be screened at pre covid rates. PVR CEO hopes to be back at pre-Covid levels by the end of the year. We anticipate gradually recovery for the sector. There will be a lot of challenges for the multiplex business for the next couple of weeks. We are bullish on the multiplex stock considering that long term prospects of the business are still promising and stock prices have corrected ~40% due to Covid," said Keshav Lahoti - Associate Equity Analyst, Angel Broking.
11. 23 AM: Coronavirus toll
Worldwide, there were 377 lakh confirmed cases and 10.81 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 71-lakh mark and the death toll from COVID-19 infections rose to 10.9 lakh, as of today.
11. 10 AM: Mazagon Dock Shipbuilders share lists at 49% premium to issue price
Mazagon Dock Shipbuilders share delivered 49% returns to investors on its market debut today. The stock listed at a premium of 49.13% to its issue price of Rs 145 on BSE today. The share opened at Rs 216.25 delivering investors return of Rs 71.25 compared to IPO price band of Rs 135 to Rs 145 per share. Total 13.60 lakh shares of the firm changed hands amounting to turnover of Rs 26.35 crore on BSE.
11.04 AM: Vedanta De-Listing
Yash Gupta - Equity Research Associate, Angel Broking said,"Delisting fails - As promoter group required to increase their holdings to at least 90% for successful delisting, but after the bidding of total 137.78 cores share only 125.47 crores shares are only confirmed by the shareholder, which is less than the required number of shares for successful delisting. As the required number of shares has not been bid so the company can't come up with the Counter offer also. Share of Vedanta ltd will trade on stock exchanges as they were doing in normal course of action. This failed delisting will be negative development or the stock."
10. 56 AM: Stocks to watch today on October 12
RITES, Wipro, Adani Ports, RIL, Glenmark Pharma among others are the top stocks to watch out for in Monday's trading session
10. 46 AM: Rupee outlook
As per Reliance Securities, Dollar Index (93.13) near-term measures remain in sell mode, the immediate support falls around 93.00 - 93.10. Further drop cannot be ruled out. USDINR (73.015) has scope to appreciate more on near-term towards 72.75.
10. 30 AM: Market outlook
Expressing views on a weekly note, Axis Securities in its report said: "Sensex has marked a high around its psychological level of 40000 and witnessed profit booking around the same hence from current levels 39500-40000 levels remain a crucial resistance zone to watch for. However, any weekly close above this supply zone will encourage the bulls to continue their bullish command into the markets towards 40500-41000 levels. As the current undertone still remains bullish and any short term corrections towards 37500-36500 levels will remain as a buying opportunity for the traders. On the contrary, the crucial support zone is around 37000-36500 levels."
"Good bullish momentum build-up was seen in IT, healthcare and consumer durables stocks. Whereas sectors like metals, oil & gas & banking lagged. Sensex had a muted performance amongst the major market indices while FTSE and NIKKEI have ended on the strong note for the month of September 2020," it added.
10. 21AM: Aviation sector- Traffic on recovery path
Centrum Broking said in its note,"Average daily domestic pax grew sharply by 41.2% mom to 129k in Sept-20 and has reached 31% of pre-Covid levels of 410k. Furthermore, we have seen a strong growth of 23.7% mom in early October which is encouraging (at 39% of pre-Covid levels). In terms of operational capacity, average daily departures grew 42.7% mom to 1311 in Sept-20 and have grown 13.5% mom to 1488 in October so far to reach 50% of pre-Covid levels. The spike in travel demand in early October (long weekend) to local holiday destinations indicates recovery in propensity for leisure travel and augurs well for the upcoming holiday season in November and December."
10. 12 AM: Nifty outlook
On markets opening today, -Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," We have achieved the 12000 target this morning! The next level to watch out for would be 12200-12300. The support is now upgraded to 11750-11800. As long as the Nifty holds these levels, we are in bullish territory and every dip or correction can be utilised to accumulate long positions."
10.08 AM: Market update
Market indices traded on a bullish note on Monday, amid positive global equities. SGX Nifty was rising 90 points higher, indicating positive trend in domestic grounds today. Sensex gained 260 points to 40,774 and Nifty gained to 62 points to 11,997.
9. 54 AM: FII data
In India, FIIs have invested Rs 5,040 crore in this month itself.
FIIs rushed to invest in India in the month of August, with inflows reaching a total of $6.3 billion, although, had turned net sellers of shares worth $73.1 billion last month.
9. 48 AM: Q2 earnings
Vinod Nair, Head of Research at Geojit Financial Services, said: "Market is booming to a new level in anticipation of better Q2FY21 results, a clear improvement in domestic economic data and uptick in the global market. The IT and Banking sector will be in focus, in the coming weeks, in expectation of real benefit in Q2 result. Banks are showing healthy deposits & advance growth, with signs of recovery in growth to pre-Covid level, while positive SC verdict is also expected next week regarding moratorium."
9. 36 AM: Nifty outlook
Aamar Deo Singh-Head Advisory, Angel Broking said," It was a very positive last week for Nifty, as taking out the earlier key resistance of 11,650, led to short-covering and renewed buying interest. Going Forward, Nifty has crucial support zone around 11600-11650 whereas resistance is seen around 12100-12200 zone
9. 31 AM: Market outlook
As per Reliance Securities, NIFTY (11914) negated the High Wave pattern with strong gain last Friday. The near-term oscillators continue in buy mode. Key support zone for the index falls around 11800 - 11760 - 11620, while it could face headwinds near 11950 - 12000 - 12120.
On Bank Nifty, the company said, BANKNIFTY (23847) also negated its reversal formation of Shooting Star with a strong close last Friday. Though few of the near-term metrics are in overbought zone, the are yet to reverse. The supports for this index falls near 23560 - 23460. The near-term resistance zone is close to 24000 - 24120 - 24400.
"FIIs marginally sold last Friday, while the DIIs continued as net buyers on the equity cash segment," it added.
9. 24 AM: Global markets
Overseas, Asian stocks were mostly trading higher on Monday, tracking rally from US after remained optimistic about another fiscal stimulus package being passed by Congress eventually, encouraged by continued talks between House Democrats and the Trump administration.
In US, stocks logged gains on Friday as President Donald Trump signaled support for a bigger coronavirus aid package. The Dow Jones Industrial Average closed 161.39 points higher, or 0.6%, at 28,586.90. The S&P 500 gained climbed 0.9% to 3,477.13. The Nasdaq Composite advanced 1.4% to close at 11,579.94.
9. 17 AM: Opening session
Market indices opened on a bullish note on Monday, amid positive global equities. SGX Nifty was rising 90 points higher, indicating positive trend in domestic grounds today. Sensex gained 324 points to 40,839 and Nifty gained to 84 points to 11,998.
9. 13 AM: Market update
On the domestic front, sentiment got a boost after the Reserve bank of India left its key policy rates unchanged while retaining its accommodative stance.
On the macro front, the industrial production data for August and CPI inflation for September will be released today, 12 October 2020.
9.00 AM: Listing today
Companies namely UTI AMC and Mazagon Dock Shipbuilders that finished their IPOs recently, are set to make their debut on the bourses BSE and NSE on Monday at 10 AM.
8. 50 AM: FII action
Foreign portfolio investors (FPIs) sold shares worth Rs 39.39 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 126.61 crore in the Indian equity market on 9 October, provisional data showed.
8. 40 AM: Wipro Q2 results today
All eyes are set on the Bengaluru-headquartered IT firm Wipro, as the IT major will post Q2 numbers later in the day. Investors are also awaiting Sept quarter earnings reports will provide a clear picture of the disruption caused by the coronavirus pandemic-induced lockdown.
8. 30 AM: Closing on Friday
Extending gains for the seventh consecutive session, the 30-share benchmark BSE Sensex ended 326 points higher at 40,509 on Friday and NSE Nifty50 gained 79 points to 11,914. During the 7 days of straight gains, Sensex has risen 2,529 points higher, while NSE Nifty has gained by 692 points from 11,222 since Sept 40, last Friday.