Market At Close | Here are the highlights of today’s trading session
-Market Snaps 3-day Gaining Streak; Banks Top Losers
-Market Breadth In Favour Of Declines; Advance-Decline Ratio At 1:2
-Infosys, Axis, TCS & ICICI Drag Market While HDFC, RIL & Bharti Support
-Sensex Slips 17 Points To 58,279 & Nifty 16 Points To 17,362
-Nifty Bank Falls 124 Points To 36,469 & Midcap Index 73 Points To 29,105
-Bharti, Voda Idea Surge On Reports Of Govt Mulling Relief For The Sector
-Housing Finance Cos (HDFC, Can Fin, LIC Hsg ) Rise On Strong Realty Demand
-ITC Amongst Top Nifty Gainers Following CLSA’S Buy Call With `265/Sh Target
-Sun Pharma, BPCL, Hindalco, Axis Bank, Wipro, Tech Mahindra Top Nifty Losers
-Gain In Voda Idea Lifts Stocks Like Indus Towers, IDFC First & IndusInd Bank
-IRCTC, Voltas, Polycab, JSPL, Max Fin Top Midcap Gainers
Closing Bell | Indian equity benchmarks Sensex and Nifty ended flat in a volatile session on Tuesday dragged by weakness in banking and IT shares. The Sensex eased 17.43 points, or 0.03 percent, to end at 58,279.48, while the Nifty closed at 17,362.10, down 15.70 points, or 0.09 percent. Broader markets, smallcap and midcap indices closed marginally lower. Among sectors, selling was seen in banks, IT, metals, pharma, realty and auto indices, while FMCG, media and financial services indices ended in the green.
Market Watch:Mehraboon J Irani, Market Expert
IRCTC is a stock if you know as to sell on good days and again learn to buy when the stock comes off sharply for whatever reason, one can do it otherwise this is a pure investment stock. A great stock and this is something which people need to understand that the earnings will possibly keep on improving as we go ahead.
Going ahead, the business can only improve. Things are only going to improve from hereon. Even at present price, if one sees a 10 percent correction from here, one should not be surprised but from a pure investment angle, I personally believe the stock should be much higher over the next one-one and a half year.
Centre likely to beat excise target yet again, states share down to 5.5% of revenue mop-up
The Centre has continued to make a killing in excise duty mop up on petrol and diesel. According to the CGA data, the Centre has mopped up over Rs 1 lakh cr between April-July and the state’s share of this bounty is less than Rs 5500 crore, which is not even 5.5 percent of the total corpus.
While the impact of the steep hike in road cess and special excise duties was reflected in close to Rs 3.90 lakh crore collected in FY21 by the Centre, the impact of the cut in basic excise duties to adjust for the agriculture infra development cess in the budget is telling on the states share.
Also, while net tax revenues during April-July stand at a buoyant Rs 5.29 lakh crore, almost Rs 95,000 crore of this collection is made up of excise duties. Read full story here
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed some volatile movements and an attempt to hold the level around the Nifty50 Index level of 17,300. If the market sustains above the level of 17,200-17,250, it is expected to gain momentum, leading to an upside projection till 17,400-17,450 level. The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.
World shares hit fresh peaks on dovish Fed bets
World stocks hit fresh record highs on Tuesday on growing bets that the US Federal Reserve will push back tapering its bond purchases and keep its expansive policy for the near term. European shares dipped in early trading after Monday gains, however, with the STOXX 600 regional index down 0.1 percent but still close to their lifetime peak, hit in August.
The MSCI world equity index was up 0.1 percent by and looked set for its eighth consecutive day of gains to record highs, while stock futures pointed to a positive open on Wall Street after the long Labor Day weekend.
Gold slips as uptick in yields, dollar dent appeal
Gold prices fell on Tuesday, retreating further from a 2-1/2 month peak hit last week, as a firmer dollar and a rise in US Treasury yields dented demand for safe-haven bullion. Spot gold was down 0.5 percent to $1,813.60 per ounce, while US gold futures fell 1 percent to $1,815.80.
Cabinet to take up PLI scheme for textile sector on September 8: Sources
The Union Cabinet will take up the PLI scheme for the textile sector on Wednesday, September 8, sources told CNBC-TV18. The government is likely to announce contours of the textile PLI scheme after the meeting, they said.
Explained: What is crypto coin burning and how does it impact investors?
Coin burning is a process in which cryptocurrency miners and developers remove a specific portion of coins from circulation to control their prices. It is a common industry practice to incentivise long-term holding among users. This is generally done periodically. (Read more on crypto coin burning)
IRCTC share price jumps 9% to record high; Mcap soars above Rs 52,000 crore; analysts warrant caution
Indian Railway Catering and Tourism Corporation (IRCTC) share price rallied over nine percent to touch a fresh record high of Rs 3,297.90 on Tuesday. The company’s market capitalisation also crossed Rs 52,000 crore on the BSE.
The stock price has jumped more than 54 percent in the last three months and it is up over 125 percent YTD. In the last year, it registered a gain of more than 128 percent, outperforming the benchmark indices and the broader markets.
Analysts say the stock rally can be attributed to the reopening of the economy which will benefit the travel sector and the company’s monopoly in the internet ticketing for Indian Railways. Continue reading
Nifty outperforms Mid/Small-Cap first time in CY21
Dr Reddy’s Labs launches Minoxidil for women in India
The drug maker announced the launch of prescription drug Minoxidil topical solution USP 2 percent and 5 percent for the treatment of female pattern hair loss
(FPHL). Dr Reddy’s will sell its products under the brand names Mintop TM 2 percent and Mintop Eva 5 percent, it said in a regulatory filing.
The launch follows the first-ever approval of the additional indication by the Central Drugs Standard Control Organization (COSCO) in India for the use of Minoxidil topical solution USP 2 percent and 5 percent for the treatment of FPHL, it said.
Wonderla Holidays says all amusement parks now reopened, footfalls encouraging
All amusement parks of Wonderla Holidays have reopened, MD Arun K Chittilappilly told CNBC-TV18. The amusement parks are now open four days a week and footfalls have been encouraging.
The footfalls have matched the pre-pandemic levels, he said. Chittilappilly also said he is optimistic that the company could be EBITDA positive in Q2.
LIC Housing Finance in strategic partnership with India Post Payments Bank for home loan products
LIC Housing Finance announced a strategic partnership with India Post Payments Bank for providing home loan products to more than 4.5 crore customers of the payments bank. Through its network of 650 branches and more than 136,000 banking access points, IPPB will make LICHFL’s home loan products accessible to its customers pan-India, a joint statement said.
LIC Housing Finance shares traded 2.88 percent higher at Rs 416.40 apiece on BSE.
Marico on track to hit Rs 450-500 crore revenue in food business this year: Saugata Gupta
“Demand continues to be stable. Therefore, 8-10 percent volume growth for the balance year – especially given the fact that we are going to lap up 17 percent and 25 percent volume growth in Q3 and Q4 respectively, it is very much possible,” Marico MD and CEO Saugata Gupta told CNBC-TV18.
Marico shares traded with a gain of 0.87 percent at Rs 559.65 apiece on BSE in afternoon deals, outperforming the 30-scrip benchmark index Sensex, which was up 0.34 percent. The S&P BSE FMCG index was up 0.63 percent. (Read more on Marico here)
Nifty Bank may find major support at 35,600 mark: Rohit Srivastava
“The Bank Nifty has been a laggard. There’s been a lot of hope that every time Nifty picks up, it (the banking index) will break past that 36,000 mark, which it was stuck below. It did get past that but again, it seems to be retesting that level today; the 20-day moving average is a little below the maybe 35,600 or so level, which may be the major support,” Rohit Srivastava, Founder and Strategist, Indiacharts.com, told CNBC-TV18.
“So hopefully it will not go below that in this selloff. And as long as we don’t close below the 20-day moving averge, overall, the trend will remain intact for the Bank Nifty index,” he said. If the banking hindex holds that level, it may rise past its June high of 37,700, he said.
Nifty may be headed towards 18,000, room for knee jerk reaction in short term: Rohit Srivastava
In the next one or two days, there is room for some knee jert reaction in the Nifty index, though overall trend and setup suggests that it should be headed towards the 18,000 level, Rohit Srivastava, Founder and Strategist, Indiacharts.com, told CNBC-TV18. “Negative divergences are a situation where prices may continue to advance when the indicator might not continue to make higher highs along with the price. We haven’t reached that point but we have reached a high reading, which can sometimes result in a very short-term knee jerk reaction, which occurs for maybe one or two days,” he said.
Buy Marico, sell RBL Bank: Ajit Mishra of Religare Broking
Here are two trading calls from Ajit Mishra of Religare Broking:
- Buy Marico for a target of Rs 585 with a stop loss at Rs 554
- Sell RBL Bank for a target of Rs 160 with a stop loss at Rs 180
Care reaffirms IPCA Labs rating, revises outlook to ‘positive’ from ‘stable’
Ipca Labs shares traded with a loss of 1.7 percent at Rs 2,455 apiece in afternoon deals on BSE, underperforming the headline Sensex index, which was up 0.39 percent. The stock was close to its intraday low.
Sharp pullback in Bank Nifty helps market turn positive
- IndusInd Bank: +1.27%
- HDFC Bank: +0.75%
- ICICI Bank: -0.18%
- SBI: -0.48%
- Bandhan Bank: -0.63%
- PNB: -0.66%
- Kotak Mahindra Bank: -0.96%
- Axis Bank: -1.27%
HDFC twins, Reliance Industries, Bharti Airtel top Nifty50 movers
HDFC, HDFC Bank, Reliance Industries, Bharti Airtel, ITC and Asian Paints were among the biggest movers for the 50-scrip index. On the other hand, selling pressure in stocks such as Infosys, Kotak Mahindra Bank, Axis Bank and TCS kept the upside in check.
If Nifty sustains 17,200, it can move towards 17,450-17,500 levels: Gaurav Garg of CapitalVia
“Research suggests that if the Nifty50 index sustains above the 17,200 mark, we could expect the market to gain momentum, leading to an upside projection till 17,450-17,500 levels,” said Gaurav Garg, Head of Research at CapitalVia Global Research.
Buy IEX, ABFRL: Mitessh Thakkar
Here are two trading calls from Mitessh Thakkar of earningwaves.com:
- Buy IEX for a target of Rs 610 with a stop loss at Rs 564
- Buy ABFRL for a target of Rs 229 with a stop loss at Rs 210
Not expecting big listing gain from Vijaya Diagnostic: Yash Gupta of Angel Broking
Yash Gupta, Equity Research Analyst at Angel Broking, said Vijaya Diagnostic’s IPO was priced at a price-to-earnings ratio of 64.3 times, and an EV-to-EBITDA ratio of 30 times at the upper price band based on FY2021 numbers — in line with the listed peer group. All bidders in the retail investor category may get the allotment, he said.
“We are not expecting any big listing gain from Vijaya Diagnostic Centre as we believe that all the short-term positives have been priced in the IPO price,” he added.
Speaking on Ami Organics, he said the IPO was priced at a P/E ratio of 35.6 times and an EV/EBITDA ratio of 25.7 times at the upper price band based on FY2021 numbers. That, he said, was on the higher side compared to the listed peer group. “We suggest short-term investors to book profit on the listing day if they receive the allotment,” he added.
Both companies are likely to finalise the allotment of shares on September 8. Vijaya Diagnostic and Ami Organics shares will be listed on stock exchanges BSE and NSE on September 14.
Vijaya Diagnostic Centre Limited expect to get a listing on 14th September 2021 and allotment will be received by the investors in a couple of days. As overall IPO got subscribed 4.54 times and the retail portion got subscribed by 1.09 times, so it is expected that
Infosys, ICICI Bank, Axis Bank biggest drags on Sensex
Infosys, ICICI Bank, Axis Bank, Kotak Mahindra Bank, TCS and SBI were among the biggest drags on the 30-scrip index. On the other hand, gains in Reliance Industries, Bharti Airtel and ITC kept the losses in the index in check.
Significant pricing power to come in telecom sector: Nippon India AIF’s Varun Goel
A significant pricing power is expected to come in the telecom sector, Varun Goel of Nippon India AIF told CNBC-TV18. A revival is expected in the services sector, which has been badly impacted by the second wave of the pandemic, he said.
Residential sector to perform well going ahead: Nippon India AIF’s Varun Goel
The residential real estate sector is expected to do well going forward, Varun Goel of Nippon India AIF told CNBC-TV18. Building material, wires and housing finance companies are expected to do well, he added.
He also said the affordability ratio is not at 27-28 percent, and the home loan cost at 6.7-6.8 percent.