Sensex, Nifty Highlights on August 28: Domestic benchmarks Sensex and Nifty ended on a bullish note on Friday, led by heavy buying in banking and financial scrips despite mixed global cues. Sensex ende 353 points higher at 39,467 and Nifty ended 96 points higher at 11,655. Yesterday, the S&P BSE Sensex ended 39 points higher at 39,113. The Nifty 50 index ended 9 points higher at 11,559. During the week, sensex and Nifty have risen by 1,032 points (2.69%) and 275 points (2.42%), respectively.
Here's a look at the updates of the market action on BSE and NSE today
3.45 PM: Closing session
Domestic benchmarks Sensex and Nifty ended on a bullish note on Friday, led by heavy buying in banking and financial scrips despite mixed global cues. Sensex ende 353 points higher at 39,467 and Nifty ended 96 points higher at 11,655. During the week, sensex and Nifty have risen by 1,032 points (2.69%) and 275 points (2.42%), respectively.
3. 39 PM: Rupee ends at 73.39 per dollar
On the currency front, Indian Rupee ended at 73.39 per dollar, as against Thursday's close of 73.84 per Us currency. The local unit has risen 1.9% this week, its biggest weekly rise against the dollar since the week ended December 21, 2018.
3. 22 PM: Sector update
Sectorally, except auto, FMCG and metal, all the other indices closed in green territory, with major gains in banking and financial scrips.
3.12 PM: Phoenix Mills share gains over 1%
Phoenix Mills share price rose over 1% in Friday's early trade after brokerage firm CLSA gave a 'buy' call on the stock and raised the target to Rs 790 per share from the previous Rs 742.
Following the updates, Phoenix Mills stock opened at Rs 652.90 and touched an intraday high of Rs 654.35, rising 1.48% on BSE. The stock price of Phoenix Mills also hit low of Rs 646.05 intra day.
2. 49 PM: NMDC share price climbs 13%
Share price of NMDC rose over 13% today after the board of the state owned firm cleared the proposal to demerge its iron & steel plant in Nagarnar, Chhattisgarh. NMDC stock gained 13.44% to Rs 108.9 against previous close of Rs 96 on BSE. The share opened 4.48% higher at Rs 100.30.
2. 30 PM: Global markets
Global equities showed a mixed trend as investors kept holding a cautious stance over the central bank's policy path and inflationary views.
Asian and European markets continued to trade mixed as investors reacted to the developments after US Fed announced new approach to inflation.
Wall Street stocks closed mostly higher after Fed Chairman said that policy makers would no longer pre-emptively hike interest rates to stave off inflation by adopting new approach. European markets closed lower after it lost momentum post Fed Chairman's speech. Most of the sector closed in red.
2.21PM: Ruchi Soya stock slips 56% in 2 months
Share price of Patanjali Group firm Ruchi Soya has more than halved in last two months. The stock which hit a 52-week high of Rs 1,535 on June 29 has slumped to Rs 653 in today's session. An investment of Rs 1 lakh in Ruchi Soya on June 29, 2020 would have shrunk to Rs 43,778 today, translating into wealth erosion of 56.80% during the period. Market cap of the firm too fell Rs 25,475 crore to Rs 19,525 crore today against its all-time high level of Rs 45,000 crore.
2. 11 PM: Future Enterprises share price rises 5%
Future Enterprises share price hit upper circuit of 5% today a day ahead of the board members will take a final decision for sale of group retail business to Reliance Retail. Share price of Future Enterprises opened 5% higher at Rs 20.20 against previous close of Rs 19.25 on BSE.
Total 32.68 lakh shares of Future Enterprises changed hands amounting to turnover of Rs 6.52 crore. Market cap of the firm rose to Rs 998.50 crore. During the day, stock hit a low of Rs 19.30. The share saw only buy orders, no sell orders in morning trade.
1. 53 PM: Indag Rubber Q1 update
Commenting on 1QFY21 results of Indag Rubber Ltd. By Amarjeet Maurya, AVP - Mid Caps, Angel Broking said," For 1QFY2021, Indag rubber(IRL)'s top-line de-grew by ~48% to ~Rs26cr. Top-line was negatively impacted mainly due COVID-19 lockdown which resulted in an overall slowdown of the commercial vehicle industry. On the operating front, the company reported loss of ~Rs0.5cr (against profit of ~Rs3.8cr in 1QFY20) due to negative impact of operating leverage. On the bottom-line front, IRL reported loss of ~Rs0.4cr (against profit of ~Rs2.9cr in 1QFY20) due to lower sales and poor operating performance."
1. 49 PM: Rupee outlook
Commenting on Rupee, Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking said,"Some kind of rupee appreciation was largely due, given the weakness in the dollar index and a risk-on sentiment globally as the economic activity is gradually picking up. Once the rupee broke above its crucial 74.50 mark, the RBI has not stepped in aggressively and allowed the rupee to appreciate probably because it has sufficient reserves, and aggressive intervention at this stage may not lead to significant value addition, given the extent of inflows. Moreover, we think the RBI did not want the market to be complacent for quite some time, and hence chose to loosen its grip on the rupee for the time being. "
On its technicals, she added," We are expecting the rupee to test levels of 72.80 in the immediate near term, if this scenario persists. The RBI would probably look to intervene in the forwards market for the time being".
1. 30 PM: LIC Q1 update
On LIC Q1 earnings, Geojit Financial SErvices said," The expectation of economy to improve post lockdown, strong fundamentals, and new products will boost performance in near future. Hence, we reiterate our BUY rating on the stock with a revised target price of Rs. 353 based on 0.8x FY22E BVPS."
1. 22 PM: GST outlook
On the GST meeting, GST Expert Gunjan Prabhakaran, Partner & Leader - Indirect Tax, BDO India said," One certain outcome of the GST council meeting is that regardless of the option selected by the States, compensation cess is set to continue beyond the stipulated period of 5 years. Moreover, there is a reasonable chance that the compensation cess rate would be increased in the future. This might further impact several industries such as automobiles in the long-run."
1. 13 PM: Real estate sector update
Speaking on outlook for real estate sector, Ankush Jain, MD, Bullmen Realty said, "Real estate sector has different challenges for every region in this crisis situation. Some of the state governments are seen taking proactive measures like reduction of stamp duty; this is a great move to incite demand from end-users. As the buyers looking for second homes, and even first-time buyers are more inclined towards RTMI homes that have spacious units and all essential amenities within the premises. The home loan interest rates are low making conditions more favourable for a property purchase; apart from this rupee value in international market will also attract NRIs into the Indian real estate market, as normalcy starts to return."
12. 59 PM: GMR Infra update
Expressing GMR Infra, Keshav Lahoti, Associate Equity Analyst, Angel Broking said,"India's largest airport operator, GMR Infrastructure has received board approval on Thursday that will see the holding company, GMR Infrastructure, demerge into airport and non-airport entities. Non-airport business will consist of energy, EPC and urban infrastructure. Post implementation of board proposal Company will be able to attract sector specific investors. It will also result in unlocking value for the shareholders. Separate listing of both the airport and non-airport businesses will also help in simplifying the corporate holding structure."
12.46 PM: HAL OFS update
Commenting on the ongoing OFS by HAL, Yash Gupta, Equity Research Associate, Angel Broking said," Base offer size of 3.34 crore shares and Additional option to sell 1.67 crore shares in case of oversubscription. Offer size for Non Retail Investors is 4.01 crore share and 1 crore shares for Retail Investors along with over subscription option. Till now Non Retail Investors offer has received a subscription of 106.6% (1.06 times) and Retail Investors received a subscription of 23.75% (.23 times).At cut off price, it is offered at 11.5x FY2020 EPS of Rs. 86.7, which is reasonable considering the growth prospects.
On its outlook, he added," Considering the strong pipelines of orders and given the Government's thrust on Make in Indian especially for defence sector, we are positive on the future outlook of the company and rate it as Subscribe. Retail investors will be eligible for a 5% discount to the cut off price of 1001 announced by the company, so price for retail will be 950.95."
12. 37 PM: Rupee opens flat today
The rupee opened on a flat note at 73.82 per US dollar on Friday after rising 0.65% in the previous session. Further, US Fed Chair Jerome Powell's dovish statement, positive trend in the equity markets, weak dollar and continues foreign fund inflows supported the rupee and restricted the downfall.
12. 27 PM: Top gainers and losers
Axis Bank, followed by IndusInd Bank, ICICI Bank, L&T, Tata Steel, Sun Pharma and ONGC were among the top gainers on Sensex pack. On the other hand, HCL Tech, Kotak Bank, Asian Paints, Infosys and HDFC Bank were among the laggards.
12.10 PM: Dollar index
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.19 per cent to 92.82. Dollar index fell today post-Fed Chairman's speech in which he hinted at shifting inflation target.
12.06 PM: Nifty outlook
As per Geojit Financial Services, a hammer in the closing hour sets up for a positive opening today, and should help Nifty aim for 11800 and beyond. A collapse is less expected, and while 11540 is a reasonable support, we continue to favour keeping the downside marker near 11400.
11. 47 AM: Oil prices today
Oil price gained after falling majorly as hurricane Laura made landfall in Gulf of Mexico forcing oil rigs and refineries to shut down. Brent crude futures, the global oil benchmark, rose 0.02 per cent to USD 45.10 per barrel.
11. 25 AM: Market rises further
Domestic benchmarks Sensex and Nifty traded on a bullish note on Friday, amid positive global equities, led by heavy buying in banking and financial scrips. Sensex was rising 290 points higher at 39,410 and Nifty was rising 79 points higher at 11,638.
11.18 AM: Edelweiss Financial stock rises 3%
Share price of Edelweiss Financial Services gained over 3% in early trade after the firm said Hong Kong-based private equity firm Pacific Alliance Group (PAG) will buy a 51% stake in its wealth management business for Rs 2,244 crore.
Edelweiss Financial Services share rose up to 3.33% to Rs 86.50 against previous close of Rs 83.85 on BSE. The stock has risen 2.69% in the last 2 days. Edelweiss Financial share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. However, in a year, the share has lost 29% and fallen 23% since the beginning of this year.
11. 02 AM: Gold technical update
Commenting on gold's near term outlook, Anuj Gupta, DVP-Commodities and Currencies Research, Angel Broking said," Yesterday, Gold prices fell by 1.69% and closed at Rs 50,902 levels. Silver also fell by 3.46% and closed at 65,190 levels. In international market, Gold is trading at $1936 levels and silver is trading at $27.16 levels. We are expecting again selling pressure may be seen in gold and silver prices as the dollar held gains against major currencies after the Federal Reserve's aggressive new strategy to lift employment and increased tolerance for higher inflation pushed US bond yields up."
10. 48 M: Gold outlook
Gold price in India reversed from recent losses and gained on Friday, in line with global markets as Treasury yields rose post-Fed Chairman's speech in which he hinted at shifting inflation target.
Globally, precious metals surged today, pressured by a jump in US Treasury yields on Federal Reserve Chair Jerome Powell's offer for more inflation tolerance.
10. 30 AM: Coronavirus toll
In India, the death toll touched 61,694 and total coronavirus cases reached 33.83 lakh as of Friday. Worldwide, there were 246 lakh confirmed cases and 8.35 lakh deaths from COVID-19 outbreak.
10. 25 AM: Gold outlook
As per Geojit Financial Services, prices continue to trade in a range with directionless moves. The resistance of $1976 needs to be cleared for the continuation of rallies. Likewise, the immediate downside obstacle of $1900 should be broken to trigger selling pressure.
For MCX Gold August, resistance is placed at 52,320 and support is at 49,960. For MCX Silver August futures, the resistance is at 71,250 and the support is placed at 65,580.
10. 11 AM: Global markets
Overseas, most Asian stocks are trading higher on Friday after U.S. stocks scaled new peaks for a third straight day.
In US, the S&P 500 and the Dow advanced but the Nasdaq closed lower on Thursday as investors digested the US Federal Reserve's new strategy to adopt an average inflation target and restore the United States to full employment.
Setting out the central bank's aggressive new strategy at a virtual Jackson Hole symposium, Fed chief Jerome Powell said it would offset below-2% periods with higher inflation "for some time," and ensure employment doesn't fall short of its maximum level.
9. 59 AM: Nifty technical
As per Reliance Securities , NSE-NIFTY continued its rising trend for straight third expiry in a row and reported increase of 4.1%. Due to higher level reversal in the index, its key technical indicators on the near-term timeframe chart reversed from their overbought zone and given sell signals. However our bullish view will remain intact provided the index stays firm above its make-or-break level 11,450. We believe the index has potential to test 11,802 mark. On the lower side, the index will initially find support at 11,307 level and then at 11,111 mark.
As for the day, support is placed at around 11,527 and then at 11,496 levels, while resistance is observed at 11,604 and then at 11,649 levels.
9. 46 AM: Stocks to watch today on August 28
Edelweiss Financial, NMDC, Hindustan Aeronautics, GMR Infra among others are the top stocks to watch out for in Friday trading session
9. 33 AM: 34 IPOs awaited this year
Data sourced from Prime Database shows that initial public offerings (IPOs) worth Rs 33,516 crore of 34 companies have received approvals. Of these, seven companies have received approvals after the government introduced a nationwide lockdown.
Year 2019 was a dull year for IPOs with only 16 companies mopping up around Rs 12,362 crore, the lowest since 2015. The overhang of coronavirus has limited the public offers hitting the stock markets in the past eight months to just two-SBI Cards & Payment Services which opened in March and Rossari Biotech Ltd that opened in July.
9. 28 AM: Nifty outlook
"The short term trend of Nifty continues to be choppy with positive bias. Similar type of movement is likely to continue in the coming sessions. One needs to be cautious about the longs, as there is a possibility of a sharp trigger of downward correction from the highs. Immediate support to be watched at 11,450. The next resistance is placed at 11,620-11,650 levels," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
9. 19 AM: Opening session
Sensex and Nifty opened on a bullish note on Friday, amid positive global equities. Sensex was rising 188 points higher at 39,301 and Nifty was rising 52 points higher at 11,611.
9.08 AM: FII/ DII action
Foreign portfolio investors (FPIs) bought shares worth Rs 1,164.32 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 809.27 crore in the Indian equity market on 27 August, provisional data showed.
9. 00 AM: Earnings Today
Inox Wind, Khadim India, Centum Electronics, GP Petroleums, Industrial Investment Trust, Kohinoor Foods, Magnum Ventures, SJVN, Polytex India, among others will be reporting April-June quarter results.
8. 50 AM: Technical Insights
As per technical outlook, where Nifty failed to hold 11,600, Sensex closed just above 39,100.
Commenting on Nifty's technicals, Aamar Deo Singh, Head Advisory, Angel Broking said, "Lackluster trading was witnessed throughout the day, with the benchmark index Nifty 50, unable to hold onto the initial gains of the day. Shorts have been squeezed hard in this expiry, and with Nifty closing above the psychological mark of 11,500, bears are likely to remain cautious. Nifty would meet with a stiff wall of resistance around 11600-11650 zone whereas support is seen around 11250-11350 zone."
8. 40 AM: Market closing
Benchmark indices Sensex and Nifty gave up early gains on the back of mixed global cues and ended marginally higher on the F&O expiry day. Extending gains for the fifth straight session, the S&P BSE Sensex ended 39 points higher at 39,113. The Nifty 50 index ended 9 points higher at 11,559. Yesterday, Sensex ended 230 points higher at 39,073 and Nifty 50 index ended 77 points higher at 11,549.
8. 30 AM: Rupee closing
On the currency front, Indian rupee, which fell 6 paise on opening deals, ended 0.65% stronger at 73.82, its highest level against the dollar since March 13. The local unit settled at 74.30 per dollar yesterday.
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