Sensex, Nifty Highlights on September 7: Sensex and Nifty closed marginally higher on Monday, tracking mixed cues from global equities. Sensex ended 60 points higher at 38,417and Nifty gained 27 points to 11,325. On Friday, Sensex and Nifty closed 1.6% lower each, tracking losses in the global markets. Sensex ended 633 points lower at 38,357 and Nifty closed 193 points down at 11,333. Over the last week, Sensex and Nifty declined 1,110 points (2.81%) and 313 points (2.69%), respectively.
Here's a look at the updates of the market action on BSE and NSE today
3. 55 PM: Closing session
Sensex and Nifty closed marginally higher on Monday, tracking mixed cues from global equities. Sensex ended 60 points higher at 38,417and Nifty gained 27 points to 11,325.
3. 24 PM: Market outlook
S Ranganathan, Head of Research at LKP Securities said,"On a day when markets remained flat and range bound for most part of the day we witnessed smart buying across select stocks in the broader market in diverse sectors like MNC Pharma, Chemicals & Speciality Chemicals".
3.13 PM: Market outlook
Vinod Nair, Head of Research at Geojit Financial Services said,"Indian markets traded with volatility and finally ended the day with a positive bias. Virus infections continued to rise unabated and this fear combined with a sell off seen in the US markets, in the previous trading session, served to bring in doubts regarding the continuation of the momentum seen in recent times in the market. Investors would do well to stay nimble, watch global sentiments and trade cautiously"
2. 59 PM: Earnings today
CG Power, InfoEdge, Parag Milk foods are among the top companies that will report April- June quarter earnings today
2. 34 PM: Vodafone Idea share rises 10%
Vodafone Idea share rose 10% today after the telco's board approved a fund-raising plan to secure Rs 25,000 crore. Share price of Vodafone Idea gained 9.99% to Rs 13.21 against the previous close of Rs 12.01 on BSE. Vodafone Idea share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Later, the share closed 26.74% higher at Rs 12.56 on BSE.
2. 19 PM: Global oil prices tumble more than $1 per barrel
Oil prices dropped more than $1 a barrel on Monday, hitting their lowest since July, after Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months as optimism about demand recovery cooled amid the coronavirus pandemic. Brent crude was at $41.75 a barrel, down 91 cents or 2.1% by 0000 GMT, after it earlier slid to $41.51, its lowest since July 30.
1. 43 PM: Lakshmi Vilas Bank shares gain 5%
Shares of Lakshmi Vilas Bank gained almost 5% in Monday's trade after the lender said it plans to raise up to Rs 1,500 crore to fund business growth and increase foreign shareholding to up to 74%.
Lakshmi Vilas Bank stock opened 4.6% higher and touched an intraday high of Rs 20, as against the last closing of Rs 19.50, also its intraday low. Market capitalisation of the micro-cap stock stood at Rs 663.33 crore as of today's session.
1. 32 PM: Oil prices today
Oil price traded lower as concerns over slow recovery from the pandemic added worries regarding oil demand. Global oil benchmark Brent crude was trading 0.94 per cent lower at USD 42.26 per barrel.
1. 25 PM: Real estate sector update
Speaking on outlook for real estate sector, Amit Jain, Managing Director, Mahagun Group said, "The pandemic has made developers rethink and rework upon the possibilities real estate sector can offer its investors and end-users. Business plans have become more sustainable and flexible. While the demand for better homes always remains in the market, the present times do require government's aid and push to translate this demand into sales. This will have a rippling effect on several medium and small enterprises associated with the realty sector, for better."
1. 12 PM: Happiest Minds Technologies update
On Happiest Minds Technologies IPO, Geojit Fianncial Services in its note said,"At the upper price band of Rs.166, HMTL is available at P/E of 34x FY20 which is at a premium when compared to its large and midcap peers. However, post annualizing Q1FY21 numbers we arrive at a P/E of 12xFY21 which seems attractive. With strong management pedigree and growth potential in a post Covid-19 scenario, we recommend 'SUBSCRIBE' rating for this IPO with a long-term perspective."
1.06 PM: Global markets
Asian markets were trading mixed amid the tech tensions between China and US. News that Trump administration might propose import restriction on SMIC raised concerns.
Wall Street closed lower but staged a sharp recovery from morning levels. European markets had closed lower on Friday as sell-off in the technology sector pulled down markets. EU planning fresh sanctions on Russia also raised concerns.
12. 56 PM: Market outlook
Geojit Financial Services in its note said," While upside attempts were turned lower earlier than expected on Friday, the downside objective of 11,300, on discussion all through last week was fully achieved. This will slow down the bearish momentum for now, but 10800 could continue to attract prices lower. Volatility is favoured over directional downsides today, but a rise above 11400 could revive upside hopes."
12. 40 PM: Rupee slips 4 paise to 73.18per dollar
Indian rupee, the domestic currency benchmark, slipped 4 paise to 73.18 per US dollar on Monday's opening trade as strengthening dollar and muted opening in domestic equities weighed on the local currency.
The rupee was trading in a narrow range at the interbank forex market today. It opened at 73.17 per dollar, lost further ground and was trading at 73.18, down 4 paise from its previous close of 73.14 per dollar on Friday.
12. 32 PM: Market turns muted
Sensex and Nifty turned bearish for the third consecutive session on Monday, after a heavy decline on Friday, on back of mixed global equities. Sensex traded at 38,325, down 25 points and Nifty fell 8 points to 11.325. Earlier at opening bell, Sensex was trading 100 points lower at 38,256 and Nifty was 67 points down at 11,265.
12. 20 PM: Nifty outlook
Commenting on markets' trend, Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said," Now looking at the technical set up, we can see a formation of 'Bearish Engulfing' pattern on weekly chart. It is generally considered a reversal pattern and a breach of 11300 would result into a confirmation of the same. In this case, we may see immediate decline towards 11150-11000-10870 in near term. However, it is important to take a note that since the larger degree trend is strongly up, we would consider any decline as a corrective move within the up trend and hence, it will nowhere be closer or similar to March's mayhem. In fact, it would certainly provide better opportunities to accumulate quality propositions for a longer run. In case, if market witnesses some bounce back, 11500-11650 remains to be a stiff hurdle. Also, it would now be very difficult for Nifty to surpass 11800 soon. "
12. 12 PM: Happiest Mind Technologies IPO quote
Commenting on Happiest Mind Technologies IPO, Yash Gupta, Equity Research Associate, Angel Broking said, "At upper price band it is offered at 23.6x FY2020 EPS. Considering the very high exposure to digital services and strong promoter background we expect that the company will continue to grow at a faster pace as compared to similar sized companies and therefore should command a premium valuation to the peer group. We would therefore recommend investors to SUBSCRIBE to the IPO."
12.09 PM: Happiest Minds IPO opens today
IT services firm Happiest Minds Technologies will open its initial public offer (IPO) on September 7. Price band for the IPO has been fixed at Rs 165-Rs 166 per equity share. The share sale will end on September 9. The firm will issue fresh shares aggregating up to Rs 110 crore, and an offer for sale of up to 3.56 crore equity shares.
11. 45 AM: CreditAccess Grameen Fund Raising
On CreditAccess Grameen Fund Raising, Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking said, "Creditaccess Grameen (CAGL) share price jumped 9% during the trading session and closed 3% up, on news of fundraising and improvement in collection efficiency. The Board of Credit Access Grameen approves fundraising up to Rs 1000 cr via equity issue. This fundraising will help CAGL in two ways a) help them to meet the regulatory requirement of promoter holding of 75% which is currently at 79.71%. b) I uncertain time fundraising will help them to shore up capital and support the future growth of the business. CAG share price throughout the day saw buying interest today as the company has given a business update which is positive. Credit access currently trades at 3.7x on TTM book value, which is premium compared to listed peers Satin credit and Spandana Sphoorty. MNC parentage and market leadership position will support premium valuation."
11. 31 AM: Goodyear India Q1 results
Commenting on on 1QFY21 results of Goodyear India, Amarjeet Maurya, AVP - Mid Caps, Angel Broking said," "For 1QFY21, Goodyear India (GIL)'s top-line declined by 54% yoy to Rs227cr. Top-line was negatively impacted mainly due COVID-19 lockdown. On the operating front, the company reported margin contraction (down 517bp YoY to 3.5%), due to negative impact of operating leverage. On the bottom-line front, GIL reported loss of Rs5cr (against profit of Rs26cr in 1QFY20) due to lower sales. Going forward, we expect the recovery in sales on back of revival in the auto industry."
11. 24 AM: Nifty outlook
Commenting on markets' outlook, Ajit Mishra, VP Research, Religare Broking said," Markets are facing headwinds from both domestic and global front and indications are pointing towards further slide ahead. The next major support exists at 11,050 in Nifty and it would face stiff resistance around 11,600 levels in case of any rebound. Since the broader indices are trading largely in tandem with the benchmark, we may see further profit-taking in midcap and smallcap space as well. We thus advise traders to align their trades accordingly. Investors, on the other hand, should utilise this phase to accumulate quality stocks on dips. "
11.07 AM: Gold outlook
Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking, "Last week Gold prices have corrected by 1.50% and closed at Rs 50,678 levels. Silver prices also corrected sharply by 2.28% and closed at 67,226 levels. In international market Spot, gold is trading at $1935 per ounce and silver is trading at $26.99 per ounce levels. The losses for the yellow metal were limited as US Federal Reserve's officials signalled towards a prolonged lower interest environment and more stimulus measures in the coming months to help the economy get back on track."
10. 53 AM: Market update
Equities globally fell on the back of weak US job data, raising fears of slower global economic recovery from COVID-19 pandemic. Investors were bearish on equities as coronavirus case numbers rose in the United States and some other countries, re-imposing anti-disease controls that disrupt businesses.
10. 38 AM: Gold MCX
On the Multi-Commodity Exchange platform, gold traded a tad higher tracking international commodity markets. Gold October Futures gained Rs 68 at Rs 50,746, after hitting an intraday high of Rs 50,823 against the previous close of Rs 50,678 per 10 gm. MCX gold futures currently trade over Rs 5,300 lower than the lifetime high of Rs 56,191 per 10 gm, hit on August 7. On MCX, the yellow metal has risen 41.5% to life-time high since the beginning of the year.
10. 24 AM: Global markets
Domestic as well as international equity markets were trading majorly lower today, amid weak stance by investors due to heightened tensions of slower recovery from virus pandemic. Asian stock markets were mixed on Monday, tracking losses in Wall Street that registered its biggest weekly decline in more than two months on Friday. Benchmarks in Shanghai, Tokyo and Hong Kong retreated while Seoul and Sydney gained.
10. 11 AM: Coronavirus toll
Traders said investors rushed to the safe-haven asset amid weakness in equity markets due to the rising cases of coronavirus, on a global scale. Worldwide, there were 272 lakh confirmed cases and 8.87 lakh deaths from COVID-19 outbreak. Meanwhile, India's death toll from COVID-19 infections rose to 71,687 and total coronavirus cases to 42.04 lakh as of Monday.
9. 50 AM: Marker turns bearish
Sensex and Nifty turned bearish for the third consecutive session on Monday, after a heavy decline on Friday, on back of mixed global equities. Sensex was trading 100 points lower at 38,256 and Nifty was 67 points down at 11,265.
9. 43 AM: Nifty outlook
Reliance Securities said in its note,"NSE-NIFTY witnessed sharp decline post sideways movement and tested its low of bullish harami cross pattern (placed at 11,326 level). Weakness across the globe dragged the index below its 20-day EMA for the first time since 4th August, 2020 (on closing basis). Due to such a sharp decline in the index, its key technical indicators on the near-term timeframe chart turned in favour of bears. Any convincing move below its 11,326 level will accelerate undergoing negative momentum and will drag the index towards 11,111 and 10,809 levels, which coincides with its recent swing low and its 200-day SMA, respectively. On the higher side, the index will face hurdle around its high of bullish harami cross pattern, which is placed at 11,794 mark.
As for the day, support is placed at around 11,274 and then at 11,215 levels, while resistance is observed at 11,423 and then at 11,512 levels."
9. 36 AM: Stocks to watch today on September 7
SBI, Lakshmi Vilas Bank, RIL, Maruti Suzuki, Vodafone Idea among others are the top stocks to watch out for in Monday's trading session
9. 28 AM:Global markets
Asian stocks are trading higher on Monday, despite rising tech tensions between Washington and Beijing.
As per reports, the Trump administration is considering imposing export restrictions on Semiconductor Manufacturing International Corporation, China's largest manufacturer of semiconductors.
In US, stocks closed lower on Friday though well above its session low as selling eased late in the day after investors dumped heavyweight technology stocks due to concerns about high valuations.
9. 20 AM: Opening session
Sensex and Nifty opened volatile on Monday, after a heavy decline on Friday, on back of mixed global equities. Sensex was trading 47 points lower at 38,310 and Nifty was 23 points higher at 11,357.
9. 10 AM: FII action
Foreign portfolio investors (FPIs) sold shares worth Rs 1,888.78 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 456.88 crore in the Indian equity market on 4 September, provisional data showed.
8. 50 AM: Technical Insights
Technically, Nifty held above 11300 on a closing basis. "Wide-ranging days like the one witnessed on Monday have more often than not been turning points for the markets," said Nirali Shah, Senior Research Analyst, Samco Securities.
She added,"Once the immediate support of 11100 is broken on the downside, Nifty50 might head to test the lower end of the channel which is placed at 10700 levels. Immediate resistance is now placed at 11600."
On market closing today, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said, "We managed to stick above the 11300 level which is a saving grace for the bulls until markets reopen on Monday. If we breach this level on a closing basis, we could enter into a short term bear phase. On the upside, we need to get past 11600 for the markets to continue its upward momentum."
8. 40 AM: Rupee Closing
Indian rupee, on the currency front, snapped from its two-day losing streak and ended stronger on Friday. The local unit witnessed high volatility and later closed at 73.14 against the US currency, registering a gain of 33 paise over its previous close of 73.47 per dollar.
8. 30 AM: Market Closing
Sensex and Nifty closed 1.6% lower each on Friday, tracking losses in the global markets. Sensex ended 633 points lower at 38,357 and Nifty closed 193 points down at 11,333. Over the last week, Sensex and Nifty declined 1,110 points (2.81%) and 313 points (2.69%), respectively.
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