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Share Market Highlights: Sensex, Nifty end tad higher; Tata Motors, SBI, M&M, HDFC top performers

BusinessToday.In     August 27, 2020

Sensex, Nifty Highlights on August 27: Domestic benchmarks Sensex and Nifty gave up early gains amid high volatility on the F&O expiry day and ended flat with positive bias, led by mixed global equities. 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.

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 gave up early gains amid high volatility on the F&O expiry day and ended flat with positive bias, amid mixed global equities. 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.

3. 33 PM: Market outlook

On markets closing today, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," We did not spend too much time above the 11600 levels and gave up most of the gains in the second half of trading. Expiry days are expected to be volatile. What needs to be seen is whether we can keep above 11600 in the new session tomorrow and in the following week. This would indicate a new high of close to 11700-11800 for the September expiry. The support of the Nifty is at 11300 and till that level is not breached, we are in positive terrain."

3. 27 PM: ICICI Securities share slips over 3%

Share price of ICICI Securities fell over 3% today after promoter ICICI Bank said its board has approved to offload up to 2 per cent stake in broking and investment banking unit. ICICI Securities stock fell up to 3.39% to Rs 488 against previous close of Rs 505.80 on BSE. ICICI Securities share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has gained 124% in one year and gained 21.18% since the beginning of this year.

ICICI Securities share slips over 3% as ICICI Bank to sell stake

3. 12 PM: Tractor industry update

Commenting on the 4MFY21 data on Tractor industry by Amarjeet Maurya, AVP - Mid Caps, Angel Broking said," During 4MFY21, Tractor Companies have reported a strong recovery in tractor sales number. In the same period, M&M and Escorts's tractor sales number combined (combined market share is more than 50% in domestic tractor) de-grew by ~12% to 1,11,683 units. However, In July 2020, both companies' combined sales number grew by ~24% to 29,416 units. Going forward we expect strong sales for tractor on back of positive sentiments due to good cash flows to farmers, higher Kharif sowing, a timely and normal monsoon cumulatively across June & July and continued higher rural spending by the Government. Hence, we are positive on stock like M&M, Escorts and Swaraj Engines."

2. 38 PM: IGL shares decline 2.5%

Indraprastha Gas Limited registered 85% fall in its profit after tax to Rs 32 crore for the first quarter of the current financial year, as against the Rs 245.04 crore during the same quarter of the previous year. Company's total income for fell to Rs 723.16 crore in Q1 FY21, from Rs 1,779.47 crore in Q1 FY20.

Following the result update, shares of Indraprastha Gas touched an intraday low of Rs 402.95, falling 2.56% as compared to its earlier closing of Rs 413.55 on BSE. It has also touched an intraday high of Rs 417.40, after opening at Rs 411.

Indraprastha Gas stock falls over 2% on weak Q1 earnings; check what brokerages say

2. 24 PM: IndusInd Bank share gains over 9%

Share price of IndusInd Bank gained over 9% in trade today after the private sector lender said  it witnessed a three-fold rise in digital account openings from pre-COVID-19 levels and plans more investments in the digital channel. IndusInd Bank share price rose 8.97% intraday to Rs 619 against previous close of Rs 568 on BSE.

The large cap stock was top gainer on Sensex and Nifty. On Nifty, the stock rose 9.16% to Rs 619.75. The stock trades higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.

IndusInd Bank share gains over 9% intra day, here's why

2. 19 PM: IGL stock Q1 update

On IGL stock, Dolat Capital recommended accumulate rating on  with a target price of Rs 472  and said," There can be some short term pressure on the stock price as there will be capex spent to the tune of Rs 20,000 mn in next 3 years, Covid Impact can decline revenues for FY21 before getting back to normal levels in FY22, and the hangover around the common carrier policy to be introduced by the regulator."

2.06 PM: Real estate sector update

Speaking on outlook for real estate sector, Rajat Goel, Joint MD, MRG World said, "Real estate sector is elemental in improving the state of nation's economy. It is expansive and associated with multiple small, medium enterprises. The government and financial institutions have time and again came forward to boost the sector, but looking at the pace currently PMAY was started with a mission of 'Housing for All' by 2022 by building affordable homes and granting subsidies to median and low income buyers. The motion for same has definitely been slowed down due to the halt in construction and disruption of supply chain. "

1. 59 PM: RIL- Future deal

RIL chairman Mukesh Ambani's interest in the retail business of Kishore Biyani-owned Future Group has fired up stocks of the retailer. Future Group stocks, which were languishing till June, have surged up to 42% in one month on reports that Ambani-led Reliance Industries is in final stage of talks to buy a controlling stake in its retail business.  

Ambani is gearing up to offer competition to US-based Amazon's India  business in the ecommerce space by eyeing a majority stake in the Future Group.

Deal with Mukesh Ambani's Reliance not even final, but Future Enterprises stock already up 42%

1. 43 PM: Can Fin Homes Q1FY21 update

Commenting on Can Fin Homes Q1FY21 earnings, Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking said,"Can Fin Homes reported an overall good set of numbers For Q1FY21. However, on the moratorium side, 28% is a bit higher compared to his history of stable asset quality. Company has taken  total COVID provision worth of 73cr which is 0.35% of the loan book. Can fin home currently trades at 1.8x FY22E BV which we belive lower than the historical average. We have a positive view on can fin considering a continuous reduction in the cost of fund, improvement in NIM a strong parentage."

1. 36 PM: IGL Q1 update

Commenting on 1QFY21 results of IGL, Yash Gupta, Equity Research Associate, Angel Broking said,"INDRAPRASTHA GAS LIMITED  reported a weak set of numbers for the quarter ended Q1FY21. GrDue to continuous lockdown in Delhi city, there was very limited usage of PNG & CNG in commercial and domestic. Total sales volume down by 57% to 247 SCM million from 569 SCM million in Q1FY20. CNG sales volume down by 66% and PNG commercial sales down by 40%. IGL has posted a weak set of numbers due to lower off take in demand from the commercial sector. We remain cautious on the sector as demand will be impacted by local lockdown."

1. 26 PM: Real estate sector update

Commenting on stamp duty deduction in Maharashtra on housing units, Yash Gupta, Equity Research Associate, Angel Broking said,"It is a big positive for Mumbai Real estate space in difficult times. To boost the stagnant real estate market which is badly hit following the pandemic lockdown, Maharashtra government has decided to temporarily reduce the stamp duty. The reduction will be for two different time periods, First there will be a 3% reduction for transactions between 1st September to 31st December,2020 and second there will be a 2% reduction for the transaction between 1st January to 31st March 2021.This relief is over and above the 1% reduction in stamp duty for two years that the government has announced in the budget. This is a positive development for Mumbai based developers like Oberoi Realty and Sunteck realty."

1. 12 PM: Nifty outlook

On today's trend, Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said,"Despite sluggish global cues, our markets started the day marginally higher above the 11500 mark. However, all of a sudden, strong buying momentum triggered at the stroke of the penultimate hour in some of the banking heavyweights, resulting in a spike of 50-60 points in Nifty to post the highest close beyond 11500 in the last six months. Clearly, the market is in a beast mode at present and is in no mood to correct. Since the last few days, we have not been participating actively in index on the long side.

He added," For the coming session, 11575-11625 would be seen as immediate upside levels and it coincides with one of the clusters of resistances. On the downside, intraday support is placed at 11500 - 11440 and with reference to previous commentary, if any weakness has to trigger, the Nifty should break and sustain below 11440."

12. 57 PM: Rupee falls 6 paise to 74.36 per dollar

Rupee, the currency benchmark, fell 6 paise to 74.36 per dollar on Thursday's in opening deals as investors awaited fresh cues from the US central bank speech and the Reserve Bank of India.

The local unit opened at 74.30 at the interbank forex market, although, lost ground and touched 74.36, registering a fall of 6 paise over its previous close of 74.30 per dollar.

Rupee slips 6 paise to 74.36 despite weak dollar, positive equities

12. 45 PM: Top gainers and losers

IndusInd Bank, followed by HDFC twins, SBI, M&M, ICICI Bank, Axis Bank, ITC and Asian Paints were among the top gainers in the Sensex pack. On the other hand, Bajaj Auto, Bajaj Finance, HUL and NTPC were among the laggards.

12. 32 PM: Oil prices today

Oil prices steadied on worries about the demand outlook but was supported by US producers shutting output in Gulf of Mexico ahead of Hurricane Laura. Brent crude futures, the global oil benchmark, rose 0.24 per cent to USD 45.75 per barrel.

12.16 PM: Global Markets

Asian markets continued to trade mixed ahead of Federal Reserve Chairman's speech and after positive comments from Moderna on its developed vaccine.

U.S. markets closed higher backed by gains seen in technology companies like Alphabet and Facebook and supportive economic data.

European markets closed higher amid optimism over US-China trade and ahead of the speech from Federal Reserve Chairman. Tech shares led the gainers.

12.08 PM:  Market update

Domestic benchmarks Sensex and Nifty traded on a bullish note on Thursday, the F&O expiry day, amid positive global equities. Extending gains for the fourth straight session, the S&P BSE Sensex traded 220 points higher at 39,293. The Nifty 50 index was rising 59 points higher at 11,609.

11.49 AM: Gold, Silver prices in India on August 27

Gold price in India reversed trend after two sessions of marginal gains. The fall in prices came in line with global markets as investors awaited US central bank speech from Federal Reserve Chairman Jerome Powell, scheduled today.

On the Multi-Commodity Exchange, Gold October Futures traded tad lower, by Rs 28 at Rs 51,751, after hitting an intraday low of Rs 51,596 against the previous close of Rs 51,779 per 10 gm. MCX gold futures currently trade almost Rs 4,595 lower than the lifetime high of Rs 56,191 per 10 gm, hit on August 7.

Gold price slips after two days; silver rates at Rs 66,700

11. 34 AM: HAL share price

HAL share price fell in early trade today after the state-owned firm said government would sell up to 15 per cent stake through an offer for sale (OFS). The stake sale could fetch about Rs 5,000 crore to the exchequer. The share sale will be part of the Narendra Modi government's ambitious Rs 2.1 lakh crore disinvestment target for fiscal 2020-21.

Share price of HAL declined 11.43 % to Rs 1043 against previous close of Rs 1,177 on BSE. Total 0.57 lakh shares of the firm changed amounting to turnover of Rs 6.43 crore. Market cap of HAL fell to Rs 35,376 crore.

HAL share slips 11% on govt plan to sell stake via OFS route

11.27 AM: Nifty outlook

As per Geojit Financial Services, standard deviation studies suggest that the 11800 move may have to wait, with favoured view expecting a constriction in trading range. Inability to push above 11600 early in the day, should confirm this, and would see 11460 pulling prices back. Falls below 11400 could break the upside momentum, with the first objective being 11230. Alternatively, a pull back later in the day towards 11600 may revive the 11800, but directional upsides are less expected today.

11.10 AM: Gold outlook

Commenting on gold's near term technical indicators, Hareesh V Geojit's head of commodity research said, "Gold will continue to trade clueless ahead of the key US central bank speech scheduled today. However, optimism of Covid vaccine, gaining equities and a steady US dollar will continue to put downside pressure on the commodity. Anyhow, major weakness is unlikely due to increased safe haven demand of the metal."

On London spot technical outlook, he added," Immediate resistance of $1962 needs to be cleared to continue further upticks towards $2000 or more. Else, there will be a likely corrective selling but major support is seen at $1900."

10. 59 AM: Coronavirus toll

In India, the death toll touched 59,612 and total coronavirus cases reached 32.34 lakh as of Tuesday. Worldwide, there were 240 lakh confirmed cases and 8.23 lakh deaths from COVID-19 outbreak.

10. 46 AM: Dollar index today

The dollar index fell 0.2% to a near one-week low against a basket of major currencies, giving some repite to the precious metal.

10. 30 AM: Nifty's technical outlook

Expressing views on Nifty's near term technical insights, Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said, "Going ahead, a sustainable move below 11420 should be considered as an exit opportunity for existing longs and aggressive traders can opt to short as well. Below this, 11350-11300 are the next levels to watch out for. On the upside, 11500-11525 remains to be an immediate hurdle and in case if it extends further, we will still avoid participating in it."

On the Nifty Bank outlook, he added, "Banking space has gained some strength in the last 3-4 days and it is clearly not letting the market fall. It has now reached it's recent crucial high around 23200-23250."

10. 12 AM: Stocks in news

ICICI Bank, HAL, Allcargo Logistics, Gillette, Siemens among others are the top stocks to watch out for in Thursday's trading session

Stocks in news: ICICI Bank, HAL, Allcargo Logistics, Gillette, Siemens

10. 04 AM: Global market outlook

Vinod Nair, Head of Research at Geojit Financial Services said," Indian benchmark indices picked up positivity towards the latter half of the trading day, after trading flat with a slight positive bias, and ended in gains. It was in sync with a positive opening in the European markets which is banking on additional stimulus measures to aid economic recovery."

9. 56 AM: Nifty's technical outlook

Commenting on Nifty's technical outlook, Rohit Singre, Senior Technical Analyst at LKP Securities said, "Nifty has shifted its support to 11500-11450 zone as index traded decisively above 11500 zone so existing longs can be held with 11500 trailing stop out and resistance is coming near 11600-11650 zone which will be immediate profit booking levels.

On Nifty Bank, he added, "Nifty bank closed a day at 23434 with gains of 1.48% and formed a bullish candle on the daily chart, supports are coming near 23230-23000 zone and resistance is coming near 23600-23850 zone."

9.33 AM: Global markets

In US, stocks closed higher on Wednesday, pushing the S&P 500 to its fourth straight record closing high. Asian stocks are trading higher on Thursday after the S&P 500 and Nasdaq rallied to fresh records on upbeat corporate results.

Meanwhile, investors awaited with caution on US Fed Chairman Jerome Powell's view on monetary policy and on economic condition. Fed Chairman Jerome Powell will speak Thursday during a virtual version of the Fed's annual Jackson Hole, Wyoming, conference. He is expected to outline what could be the central bank's most active efforts ever to spur inflation back to a healthy level.

In Europe, stock exchanges in Paris and Frankfurt were trading on a positive note in early deals, while London witnessed losses. European indices ticked higher on expectation of additional stimulus for Germany and France.

9. 21 AM: Technical outlook

"The short term trend of Nifty continues to be positive. Next upside resistance to be watched at 11,650 for the next few sessions. Immediate support to be watched at 11,450. A decisive/sustainable move above 11,600-11,650 could pull Nifty towards the next upside of 11,900-12,000 in the near term," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

9. 17 AM: Opening session

Sensex and Nifty opened on a bullish note on Thursday, amid positive global equities. Extending gains for the fourth straight session, the S&P BSE Sensex traded 220 points higher at 39,293. The Nifty 50 index was rising 59 points higher at 11,609. Yesterday,  Sensex ended 230 points higher at 39,073 and Nifty 50 index ended 77 points higher at 11,549.

9. 08 AM: Expiry day

Trading could be volatile as traders roll over positions in the F&O segment from the near month August series to September series. The August 2020 F&O contracts expire today, 27 August 2020.

8. 59 AM: Market outlook

"With upbeat global cues and sustained recovery in banking majors, we expect Nifty to test our immediate target of 11,600 levels soon. Though all the sectors are contributing to the move on a rotational basis, traders may find it difficult to choose stocks after the substantial surge. We suggest preferring private banking, FMCG and select counters from energy and IT space for fresh buying," said Ajit Mishra, VP - Research, Religare Broking.

Share market expectations: 5 things to know before tomorrow's opening bell

8. 51 AM: FII/ DII action

Foreign portfolio investors (FPIs) bought shares worth Rs 1,581.31 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,194.62 crore in the Indian equity market on 26 August, provisional data showed.

8. 44 AM: GST Council meet today

The GST Council is scheduled to meet on August 27 to discuss the compensation payout to states and the opinion of the Attorney General on the legality of market borrowing to meet revenue shortfall. The next meeting of the Council would be held on September 19, agenda for which is yet to be decided.

8. 40 AM: Rupee closing yesterday

Tracking a bullish rally from the equity market, Indian rupee that opened 7 paise higher at 74.26, ended at 74.30 per dollar, as against yesterday's close of 74.32.

8. 34 AM: Earnings today

Companies set to announce their earnings are IDFC, NMDC, Edelweiss Financial Services, Icra, Hindustan Construction Co, Himatsingka Seid among others.

8. 30 AM: Closing session yesterday

Benchmark indices Sensex and Nifty ended on a bullish note on Wednesday, led by banking and automotive stocks amid positive global equities. Extending gains for the fourth straight session, the S&P BSE Sensex ended 230 points higher at 39,073. The Nifty 50 index ended 77 points higher at 11,549.

Sensex ends 230 points higher, Nifty at 11,549; banks, auto stocks rally

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