KEY HIGHLIGHTS
Nifty Registers Longest Gaining Streak In Over A Year To End Above 25,000-Mark: Market Wrap
The Nifty logged its longest stretch of gaining streak in more than a year to end above the psychologically crucial 25,000-mark after sixteen sessions and the Sensex extended its gains for the fifth consecutive session.
Today's rally came after dovish commentary by US Fed Chair Jerome Powell at the Jackson Hole symposium, which confirmed a September rate cut in the US.
The Nifty ended higher in the eighth consecutive session, its best streak since eight sessions ended July 6.
The Nifty ended 0.75% or 187.15 points higher at 25010.3 and the Sensex closed at 0.77% or 620.32 points higher at 81706.53. Both the indices closed at their highest levels since August 1.
Intraday, both the indices gained 0.9%.
According to Shrikant Chouhan, head equity research at Kotak Securities, 24900/81300 would be the trend decider level for Nifty and Sensex. "Above the same, the market could continue the positive momentum till 25125-25200/82000-82600," he said. "On the flip side, below 24900/81300 uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions."
Shares of HDFC Bank Ltd., HCL Tech Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and NTPC Ltd. contributed the most to the gains.
While those of Kotak Mahindra Bank Ltd., Apollo Hospitals Enterprises Ltd., Adani Ports and SEZ Ltd., Maruti Suzuki Ltd., and Grasim Industries Ltd. capped the upside.
Except Nifty PSU Bank and Nifty Media, all sectoral indices closed higher. Nifty Metal rose the most.
"There are indications that the rate cuts could happen at a faster pace, especially with the weakening of jobs data," said Naveen Kulkarni, Chief Investment Officer at Axis Securities. "However, Mr. Powell believes that the chances of the US economy entering a recession in the near term are very low."
He explained that this implies that rate cuts would likely align with consensus expectations, and the possibility of higher rate cuts may be lower. "Overall, the regime of high interest rates is coming to a close, but the likelihood of returning to an ultra-low interest rate environment also appears to be low at the moment," he said.
Market breadth was skewed in favour of buyers. Around 2,189 stocks advanced, 1,862 stocks declined, and 146 stocks remained unchanged on BSE.
Broader markets underperformed benchmark indices. The BSE Midcap and Smallcap indices ended 0.66% and 0.20% higher, respectively.
On BSE, 18 sectors advanced and two declined out of 20. The BSE Consumer Durables ended with the most gains compared to other sectoral indices. The BSE Services declined the most
Rupee Ends Flat Against US Dollar
Rupee closed flat at 83.90 against the US dollar.
It closed at 83.90 on Friday.
Source: Bloomberg
Markets At Close
Nifty ends higher in the eighth consecutive session, its best streak since eight sessions ended July 6
Sensex ends higher for fifth consecutive session
Nifty closed above psychologically crucial 25,000-level after 16 sessions
Both the indices closed at their highest levels since August 1
Nifty ends 0.75% or 187.15 points higher at 25010.30
Sensex ends 0.77% or 620.32 points higher at 81706.53
Broader indices underperformed; Nifty Midcap 100 ended 0.67% up and Nifty Smallcap 250 rose 0.42%
Most sectoral indices ended with gains; Nifty Metal was the top gainer and Nifty PSU Bank fell the most
Hindalco Industries and HCL Tech were top Nifty gainers
Apollo Hospitals Enterprises and Hero MotoCorp were top losers among Nifty stocks
Aarti Drugs Approves Buyback; Shares Jump Sharply
Approves buyback of 0.72% stake at Rs 900 per share
Source: Exchange filing
GRM Overseas Launches Strategic Platform 10X Ventures
10X Ventures to invest in digital-first new age D2C brands, incubator opportunities among others
Source: Exchange filing
Paytm Falls On Report Of SEBI Notice Over IPO Breaches
The stock fell after Moneycontrol, citing people in direct knowledge of the matter said Securities and Exchange Board of India has issued show-cause notices to Vijay Shekhar Sharma and board members who served during its initial public offering in November 2021 for alleged misrepresentation of facts.
European Indices Mixed
Nifty FMCG Hits Life High
Most constituents of the index were trading higher and only three fell including Varun Beverages, Radico Khaitan, and Balrampur Chini Mills. Colgate Palmolive was the top gainer.
Infinity Partners Sells Entire Stake In Eris Life
Infinity Partners sold entire 7.27% stake in company via off market on August 22
Source: Exchange Filing
Nifty IT Gains The Most Among Sectoral Indices
Reliance Home, Reliance Power Falls Over 5% Each
Shares of Reliance Home Finance Ltd. and Reliance Power Ltd. fell over 5% on Monday amid SEBI's ban on Anil Ambani and 24 other entities from the securities market for five years.
Ambani was fined Rs 25 crore by the markets regulator and was prohibited from having any kind of association, including directorial authority, with any other listed firm.
ICRA Research On Indian Mining Industry
Mining cess expected to elevate input costs, compress operating margins
Secondary steel producers to face more pronounced impact on lower margins
Expects margin decline of 60-80 basis points for primary steel producers
Expects margin decline of 80-250 basis points for secondary steel producers
Imposition of cess to increase landed iron ore cost in Odisha by 11%
Expects crude steel input costs by Rs 1200 per tonne
Jefferies Initiates Coverage On Emcure Pharma
Initiates 'buy' with target price of Rs 1,600; upside potential 17%
Key differentiators include strong chemistry skills in complex molecule development and no exposure to volatile US market.
Growth drivers are high growth in India & Canada, operating leverage and debt reduction should help in near term
Revenue & Profit Outlook:
Estimated 11% revenue CAGR from India market share gains and new export launches.
2.2 percentage points EBITDA margin expansion expected.
Lower finance costs to drive 29% PAT CAGR over FY24-27E.
Nifty Hits 25,000- Level After Eight-Session Rally
Nifty extended its gains for eighth consecutive session to hit 25,000. It has gained nearly 4% in these eight sessions.
Dinshaw Irani, CEO of Helios Capital said that given the June quarter results, fundamentals are not supporting the current rally and we might be looking at time correction going forward.
Poly Medicure Hits Lifetime High
Poly Medicure Ltd. rose as much as 8.72% to Rs 2,406.15, the highest level since its listing on Dec 17, 2011. It was trading 5.63% higher at Rs 2,337.90 as of 10:04 a.m., as compared to 0.59% advance in the NSE Nifty 50 index.
Shilpa Medicare Ends Phase 3 Trial Of A Product
Completes phase 3 clinical studies of novel product to treat nonalcoholic fatty liver disease
Source: Exchange Filing
Interarch Building Debuts At 44% Premium On NSE
Shares of Interarch Building Products Ltd. opened on the National Stock Exchange at Rs 1,299 per share, a premium of 44% over the issue price of Rs 900 apiece. The scrip debut at Rs 1,291.2 per share on the BSE, marking a premium of 43%.
BHEL In Pact With Adani Power
Signs contract with Adani Power for setting up 3 supercritical thermal power projects of 2x800 MW each.
Source: Exchange Filing
Zydus Life Falls After Stake Buy In Sterling Biotech
Shares of Zydus Lifesciences Ltd. declined in early trade on Monday after the company made an entry into fermentation-based protein business by acquiring 50% stake in Sterling Biotech Ltd. from Temasek-backed Perfect Day Inc.
KEC Jumps On Order Win
KEC International Ltd. jumped to over three-week high on Monday after the company received orders worth Rs 1,079 crore.
Nifty, Sensex Open Higher Tracking Powell Comments: Opening Bell
Benchmark equity indices continued their uptrend tracking US market gains after Federal Reserve Chair Jerome Powell's dovish commentary at the Jackson Hole symposium.
At pre-open, the Nifty was at 24908.05, up by 0.34% or 84.90 and the Sensex rose 0.37% or 302.74 points at 81388.95.
"We believe the short-term market structure is positive, but we may see limited activity in the near future due to temporary overbought conditions, said Shrikant Chouhan, head of equity research at Kotak Securities. "Hence, buying on dips and selling on ups would be the ideal strategy for traders now. "
For Nifty and Sensex, according to Chouhan technical levels of 24700/80800 and 20 day SMA or 24550/80300 would be the key support zones while 24950-25050 / 81850-82150 may act as crucial resistance zones for the week.
Shares of HDFC Bank Ltd., Tata Consultancy Services Ltd., Reliance Industries Ltd., Infosys Ltd., and Oil & Natural Gas Corp. Ltd contributed the most to the gains.
While those of ITC Ltd., Apollo Hospitals Enterprises Ltd., Hindustan Unilever Ltd., Sun Pharmaceutical Industries Ltd., and Maruti Suzuki Ltd. capped the upside.
Most sectoral indices rose with Nifty IT leading the gains. Nifty Realty was the top loser.
TCS North America head Muthuswami resigns
Suresh Muthuswami, Chairman of North America region quits
Muthuswami leaves after 26 years at TCS
Marks first exit under new CEO K Krithivasan
Source - Company statement
Nifty, Sensex Higher At Pre-Open
At pre-open, the Nifty was at 24908.05, up by 0.34% or 84.90 and the Sensex rose 0.37% or 302.74 points at 81388.95.
Rupee Opens Stronger Against US Dollar
Rupee appreciated by 8 paise to open at 83.82 against the US dollar.
It closed at 83.90 on Friday.
Source: Bloomberg
Yield On The 10-Year Bond Opens Flat
The yield on the 10-year bond opened flat at 6.85%.
It closed at 6.86% on Friday.
Source: Bloomberg
Emkay On Dalmia Bharat
Maintains 'reduce'; target price Rs 1,800
Takeaways from Management Meet
Capacity target of 75mt/110-130mt by FY28/FY31
Cement prices have likely declined by 3% sequentially in Q2TD
Remains hopeful of demand/price recovery in H2FY25
Targeting sustainable cost savings of Rs150-200/t during the next 3 years
Motilal Oswal On Mankind
Reiterates 'buy'; target price Rs 2,760, implying 17% upside
Roadmap for growth through expansion in high entry barrier innovative product launches
Implementing efforts to deepen its presence in Tier I/ metro cities
Expanding in the consumer wellness segment via product launches
Expect 14% earnings CAGR; Value Co at 42 times 12 month forward earnings
Dollar Index Hovers Around One-Year Low
Intraday, the dollar index fell 0.18% to 100.53 on Monday.
The index was trading 0.09% lower at 100.63 as of 08:17 a.m.
The dollar index hit its lowest level since July 20, 2023 for first time on Friday.
Source: Bloomberg
Standard Chartered Steve Englander On Powell Comments
Believes the Fed is back to being the US markets' friend
Rate cuts to be a positive for most emerging markets
Currency rates to benefit from US' rate cut directions
Expects 2025 to be a weak dollar year
Central banks loving gold as an asset as a weaker dollar also helps gold
Not a bad time to be a gold miner
Julius Baer's Mark Matthews On Powell Comments
Sees US benchmark interest rate at 3.25% by summer of 2026
Powell did not use any language that his colleagues have been using like 'methodical' or 'gradual' to describe the impending rate cuts. He is referring the cuts could be quite rapid.
The rise in unemployment looks more driven by confidence in the economy and people coming back into the job market
Derivatives that track the Fed funds rate are implying aggressive rate cuts.
Citi on GoDigit General Insurance
Maintains 'Buy' with target Rs 425, upside 18%
Analyst day takeaways: building a scalable and profitable model
Cautious on growing large corporate group health owing to elevated pricing pressure
Strong growth in SME group business
Focus on shifting towards higher share of in-house claims processing in group health
Development of ‘OJAS’ platform for agents to track progress
Assertive stance on motor TP claims provisioning relative to most peers
Sustained investment in scaling up tech-backed models for risk prediction/selection
Management upbeat on revival in growth trajectory alongside controlled claims in near-term
Go Digit is our preferred pick within non-lifers
Stock trades at 60 times FY2027E EPS
Raymond James Matt Orton On Powell's Comments
It was very constructive what investors heard from the US Federal Reserve Jerome Powell.
The stage is definitely been set. It's the clearest signal market participants received from Powell that rate cuts are going to start from September.
Now, the question is how deep those cuts are going to be. Powell is the master of keeping option open. He did just that using Jackson Hole. He kept the quantum of the cuts data dependent.
Depending on the kind of data market participants have from the US economy, there's seen some cooling of US economy. There are some cracks are seen in labour market.
However, none of those indicates immediate recession or fallout in labour markets with the corporate profit margin staying at the highest since 2021.
Nuvama On Coal India
Maintains 'hold' at Rs 567 target (5.4% upside)
Expects FY25/26 volumes of 791/831 million tonne vs mgmt. guidance of 838/905 million tonne
Volume growth critical to hit Ebitda CAGR of 5% in FY24–26
Expects capex of Rs 15500 cr per year over FY25–26
Liability of Rs 31590 crore due to mineral taxation, expects firm to recover Rs 24000-25000 crore
Global Cues
U.S. Dollar Index at 100.64
U.S. 10-year bond yield at 3.79%
Brent crude 0.76% higher at $79.62 per barrel
Nymex crude 0.83% higher at $75.45 per barrel
GIFT Nifty flat at 24,916.00 as of 7:43 a.m.
Bitcoin was down 0.4% at $64,006.55
F&O Cues
Nifty August futures up by 0.05% to 24,854 at a premium of 31 points.
Nifty August futures open interest up by 3.5%.
Nifty Bank August futures down by 0.14% to 50,966 at a premium of 33 points.
Nifty Bank August futures open interest down by 8%.
Nifty Options Aug. 29 Expiry: Maximum call open interest at 26,000 and maximum put open interest at 24,000.
Bank Nifty Options Aug. 28 Expiry: Maximum call open Interest at 51,000 and maximum put open interest at 51,000.
Securities in ban period: Aarti Industries, Aditya Birla Fashion, Balrampur Chini Mills, Birlasoft, Chambal Fertilisers, GNFC, Granules, Hindustan Copper, India Cements, National Aluminium, RBL Bank, Sun TV.
Trading Tweaks
Ex/record dividend: Manappuram Finance,
Ex/record AGM: Hatsun Agro Product, Aurobindo Pharma, Jaiprakash Power Ventures.
Moved into short term ASM Framework: Morepen Laboratories.
Moved out short term ASM Framework: Inox Wind, Triveni Turbine.
Bulk Deals
Ambuja Cements: GQG Partners Emerging Markets Equity Fund bought 1.7 crore lakh shares (0.69%) at Rs 625.5 apiece, while Holderind Investments sold 6.79 crore shares (2.76%).
Ethos: Saboo Ventures LLP sold 1.48 lakh shares (0.63%) at Rs 3,044.49 apiece.
Hinduja Global Solutions: Legends Global Opportunities (Singapore) Pte. bought 7.11 lakh shares (1.52%) at Rs 885.11 apiece, New Leaina Investments sold 3.64 lakh shares (0.78%) at Rs 906.84 apiece.
Block Deals
Ambuja Cements: Holderind Investments sold 6.79 crore shares (2.75%), while GQG Partners Emerging Markets Equity Fund bought 2.68 crore shares (1.08%), SBI Life Insurance Co. bought 79.9 lakh shares (0.32%), National Pension System Trust bought 71.9 lakh shares (0.29%) and among others at Rs 625.5 apiece.
Nykaa: Harinderpal Singh Banga sold 4.08 crore shares (1.43%) at Rs 208.3 apiece, while Goldman Sachs (Singapore) Pte.- Ltd.-Odi bought 37.5 lakh shares (0.13%), Kotak Mahindra Mutual Fund bought 29.52 lakh shares (0.1%), and Nippon India Mutual Fund bought 74 lakh shares (0.25%), among others.
Seamec: Legends Global Opportunities (Singapore) bought 2.79 lakh shares (1.09%) at Rs 1,500 apiece, and Nomura Singapore Ltd. sold 2.79 lakh shares (1.09%).
IPO Offering
Orient Technologies: The public issue was subscribed to 151.7 times on day 3. The bids were led by qualified institutional investors (189.9 times), non-institutional investors (300.6 times), and retail investors (66.87 times).
IPO Listing
Interarch Building Products: The company's shares will debut on the stock exchanges on Monday at an issue price of Rs 900 apiece. The Rs 600.3-crore IPO was subscribed 93.53 times on its third and final day. Bids were led by institutional investors (205.41 times), retail investors (19.11 times), and non-institutional investors (128.42 times).
Stocks to Watch
KEC International: The company received a new order worth Rs 1,079 crore in transmission, distribution and cable businesses.
Religare Enterprises: Enforcement Directorate officials carried out searches at the premises of Rashmi Saluja, executive chairperson; Nitin Agarwal, group chief financial officer; Nishant Singhal, general counsel; and Chirag Jain, chief operating officer of Religare Finvest.
Lemon Tree Hotels: The company signed a license pact for a 175-room property in Surat.
IDFC: The company received an income tax refund of Rs 203 crore.
Cyient: The company incorporated its subsidiary, Cyient Semiconductors.
Symphony: The company's arm has incorporated a China-based unit, Dongguan GSK Appliances.
Uno Minda: JV Tokai Rika Minda announced the opening of a new manufacturing plant in Rajasthan. The plant will have an annual production capacity of 3.84 lakh units per month.
Dr. Reddy’s Laboratories: The US FDA concluded a product-specific pre-approval inspection at a manufacturing facility in Andhra Pradesh and issued a Form 483 with three observations.
Karur Vysya Bank: SBI Mutual Fund received RBI approval to acquire a 9.99% stake in the bank.
GIFT Nifty Trades Above 24,900
Most markets in Asia-Pacific region were trading higher on Monday, taking cues from the last week's gains on Wall Street as US Federal Reserve Chair Jerome Powell's remarks assured traders of monetary easing from next month.
The Kospi was 3.12 points, or 0.12% higher at 2,704.81, and the S&P ASX 200 was 34.10 points, or 0.42% higher at 8,058.00 as of 06:15 a.m.
Stocks went up and bond yields dropped after Powell suggested that the central bank is likely to cut interest rates in September. He also hinted that there might be more rate cuts in the future, according to Bloomberg.
The S&P 500 and Nasdaq Composite ended 1.15% and 1.47% higher, respectively on Friday. The Dow Jones Industrial Average ended 1.14% higher.
Brent crude was trading 0.55% higher at $79.57 a barrel. Gold was higher by 0.09% at $2,514.75 an ounce.
The GIFT Nifty was trading 0.04% or 11.00 points lower at 24,907.00 as of 06:32 a.m.
On Friday, the NSE Nifty 50 and BSE Sensex ended the muted session little changed, and posted a two-week winning streak. Market participants awaited Powell's speech at the Jackson Hole gathering, in Wyoming.
The Nifty 50 ended 11.65 points, or 0.05%, higher at 24,823.15, and the Sensex closed 33.02 points, or 0.04%, up at 81,086.21.
Overseas investors stayed net buyers of Indian equities on Friday for the second straight day. Foreign portfolio investors bought stocks worth Rs 1,944.5 crore, according to provisional data from the National Stock Exchange. Domestic institutional investors stayed net buyers for the 15th session and bought equities worth Rs 2,896 crore, the NSE data showed.
The rupee strengthened by 5 paise to close at 83.90 against the US dollar.
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