KEY HIGHLIGHTS
Rupee weakens Against US Dollar
The Indian rupee weakened by 5 paise to close at 83.97 against the US dollar. It closed at 83.92 on Monday.
Source: Bloomberg
Markets Snap Longest Winning Streak
The benchmark indices snapped their 13-day winning streak to end flat on Tuesday as heavyweights Infosys Ltd. and Reliance Industries Ltd weighed.
The Nifty closed 1.15 points lower at 25,279.85, and the Sensex closed 0.01% or 4.40 points down at 82,555.44.
On the Nifty's hourly chart, there are divergences emerging but consolidation is still away, said Kush Bohra, founder of investment advisory firm kushbohra.com.
"The price is not suggesting any imminent correction, there is no price action on the downside," said Aditya Agarwal, head of research and investments at Invest4edu.
Shares of ICICI Bank Ltd., HDFC Bank Ltd., SBI Life Insurance Corp., and HDFC Life contributed the most to the gains in the Nifty.
Infosys, Reliance Industries, and Bharti Airtel Ltd. weighed on the index the most.
Most sectoral indices ended lower on the NSE, with the Nifty Media declining the most.
Broader markets outperformed benchmark indices. The BSE Midcap and Smallcap indices ended 0.19% and 0.53% higher, respectively.
On BSE, 11 sectors advanced, and nine declined out of 20. The BSE Consumer Durables rose the most, and the BSE Oil & Gas declined the most.
Market breadth was evenly split between buyers and sellers. Around 2,011 stocks advanced, 1,925 stocks declined, and 118 stocks remained unchanged on BSE.
Market At Close
Nifty snapped its longest ever streak
Sensex ends lower after rising for tenth consecutive session
Nifty ends 0.04% or 9.80 points down at 25268.90
Sensex ends 0.01% or 4.40 points lower at 82555.44
Intraday, Nifty rose as much as 0.17% to 25,321.70 and Sensex rose as much as 0.14% to hit its highest level of 82,675.06
Broader indices outperformed; Nifty Midcap 100 ended 0.24% up and Nifty Smallcap 250 rose 0.55%
Most sectoral indices ended lower; Nifty Financial Services was the top gainer and Nifty Media fell the most
SBI Life and ICICI Bank were top Nifty gainers
Infosys and Bajaj Finance were top losers among Nifty stocks
LIC Bangladesh Resumes Full Operations
LIC Bangladesh resumed full operations from September 2
No damages or loss to company property
Source: Exchange filing
Kotak Securities On FIEM
Kotak Securities initiated coverage with a 'Buy' with a target price Rs 2,150, which implied 33% upside.
FIEM well-placed to benefit from two-wheeler industry recovery
Rising LED lighting adoption in the automotive segment to aid growth
Passenger vehicle segment provides significant growth opportunity over the medium term
Earnings expected to grow at a healthy 19% CAGR over FY24-FY27E
Value the stock at a PE of 20x on FY27E earnings
M&M Launches Jawa 42 FJ350
M&M’s Classic Legends launches Jawa 42 FJ350 at a starting price of Rs 1,99,142 (ex-showroom, India).
M&M said 100 new Jawa Yezdi stores to open before the festive season.
The motorcycle is available in five colourways
Atul Auto Locked In Upper Circuit
The stock was locked in its upper circuit limit in the second consecutive session.
Most European Indices Higher
Raymond Hits Over One-Month High After Clarification To Exchanges
As already intimated to the stock exchanges from time to time, Raymond Limited has demerged its lifestyle business to Raymond Lifestyle Limited, the filing said.
Further, the Company has intimated to the stock exchanges on July 04, 2024, that its board has approved the scheme of arrangement for demerger of Realty business to Raymond Realty.
The group replied to an Economic Times article named "A century old Raymond Group is planning 2 listings by end of 2025".
"As regard to the increase or spurt in the price of shares listed on the stock exchange, it is apparently market driven and Raymond Limitedhas no control over the same," it said.
Godrej Industries Hits Life High
At 1:21 p.m., the stock pared gains to trade 7.3% higher at Rs 1,131.45 after hitting Rs 1,139, its highest level.
Nifty, Sensex Rally Loses Steam As Financial Stocks Weigh: Midday Market Update
Indian benchmark stock indices' relentless record-breaking rally came under pressure on Tuesday as financial stocks dragged amid a decline among Asian stocks.
The 50-stock benchmark gauge—NSE Nifty 50—fell as much as 0.17% during the session after recording a stellar 13-day rally for the first time since the index's formal launch in 1996. The 30-stock BSE Sensex slipped nearly 0.2% intraday.
As of 12:06 a.m., the NSE Nifty 50 was 25 points, or 0.10%, lower at 25,252, and the BSE Sensex was down 92 points, or 0.11%, at 82,464.
The continuing rally in the gauge of consumer stocks to a fresh high for the second day capped the losses in the broader indices.
Nifty will need to close above 25,280 to get back on to the 25,365-800 trajectory, according to Anand James, chief market strategist at Geojit Financial Services. "Else expect a similar pattern as yesterday, with systematic slippage taking Nifty closer to our downside target of 25,200."
Most stocks in the Asia Pacific region were trading lower amid concerns about a jittery September for US markets, ignoring the possibility of rate cuts this month. The MSCI Asia Pacific index, excluding Japan, declined by 0.51% to 697.95 through midday on Tuesday.
The record breaking winning streak of the Nifty is likely to end soon and the market needs to correct, said VK Vijayakumar, chief investment strategist at Geojit Financial Services. "But there are no signals of a major breakdown or triggers for a breakout."
Shares of Hindustan Unilever Ltd., ITC Ltd., Sun Pharmaceutical Industries Ltd., Mahindra & Mahindra Ltd., and Nestle India Ltd. cushioned the losses in the Nifty 50 in trade so far.
While those of Bajaj Finance Ltd., Infosys Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and Bharti Airtel Ltd. were weighing the index.
On NSE, eight out of 12 sectors slipped with Nifty Meduia and Metal falling the most during the session. The Nifty Pharma and FCMG index rose the most in trade.
Broader markets outperformed the benchmark indices. The BSE Midcap and Smallcap indices were trading 0.25% and 0.60% higher, respectively. On BSE, 10 out of the 20 sectors declined, led by Oil and Gas and Metal.
Market breadth was skewed in favour of the buyers. Around 2,022 stocks rose, 1,779 stocks declined, and 114 stocks remained unchanged on the BSE.
Most Defense Stocks Rise As Centre Mulls New Projects
Most defense stocks gained on Tuesday as sentiment for these stocks turned positive on news the Government of India is mulling to start massive projects to upgrade its defense fleet.
Rama Steel Tubes Incorporates New Unit
Rama Steel Tubes Ltd. incorporated wholly-owned subsidiary Rama Defence.
Source: Exchange filing
Emkay Gloabal Research Begins Coverage On Ceat
Emkay Global Research initiated coverage on CEAT with 'Buy', target at Rs 3,650, which implied a 30.6% upside.
The brokerage initiated coverage despite street concerns about margin volatility.
Emkay Global Research expected tyre industry's profitability to gradually de- link from raw material prices.
CEAT has outperformed across parameters in last 5 years
The company shows greater resilience to raw material price volatility vs peers
Growth levers: Revival in 2 wheelers, exports of overhead hoist transportation systems
The brokerage expects 30% EPS CAGR over FY25-27
KPI Green Energy's Unit To Get 7-Meggawatt Solar Power Project
KPI Green Energy Ltd.'s arm gets letters of intent for 7-megawatt solar power projects.
Source Exchange filing
TCS In Pact With Google Cloud
In pact with Google Cloud to launch AI-powered cybersecurity solutions
Source: Exchange Filing
Adani Wilmar Clarification On Acquiring 3 Brands
Company keeps evaluating opportunities for growth & expansion of foods & FMCG business
No material event that requires disclosure at this stage
Clarifies on report of company looking to acquire 3 FMCG brands
Source: Exchange Filing
GMR Power Jumps 5% After B&K Securities Initiates ‘Buy’ Rating
GMR Power and Urban Infra Ltd shares gained 5% in the early morning deals on BSE on Tuesday after analysts at B&K Securities initiated a ‘buy’ coverage on the stock.
Premier Energies Debuts At 120.2% Premium On BSE
Shares of Premier Energies Ltd. listed on the BSE on Tuesday at Rs 991 apiece, a premium of 120.2% over its issue price of Rs 450 per share. Even on the National Stock Exchange, the stock debuted at a premium of 120%.
Jio Financial Services Hits One-Month High
Jio Financial Services Ltd. rose to the highest level in over one month after a report from Nuvama said the stock can make it to derivative segment, leading to its addition in the Nifty 50 by 2025.
Nifty FMCG Hits Lifetime High
ITC, HUL, and Nestle contributed the most to the gains.
Fiem Industries Rises As Kotak Starts Coverage With 'Buy'
Fiem Industries surged after Kotak initiated coverage on the stock with a 'buy' rating and a target of Rs 2,140.
Kotak Institutional On Kaynes Tech
Maintains 'buy' with target of Rs 4,950 vs 4,650 earlier, upside 1%
Semiconductor approval a potential game changer for Kaynes
Focus in the near term would be to ramp up execution
Medium term focus would be on shifting revenues toward advance packaging solution
These hold key to move margins and return profile in line with global peers
Expect Kaynes to start commercial production from 2QFY26
Global players enjoy 20%+ EBITDA margins
Diversifying into new growth areas—smart metering a near-term catalyst
Kaynes Tech Jumps As Govt Approves Gujarat Facility
Kaynes Technology Ltd. jumped over 7% on Tuesday after the Government of India approved its proposal to set up a semiconductor facility in Gujarat.
Matrimony.com Shares Rise As Co To Consider Buyback
Shares of Matrimony.com surged to hit its highest level in over two years after the company said that it will consider a buyback on September 5.
HAL Gains After Sukhoi Engine Deal
Shares of Hindustan Aeronautics Ltd. rose in early trade on Tuesday after the government approved a proposal for procurement of 240 aero-engines (AL-31FP) for the Indian Air Force's Su-30 MKI aircraft from the company at a cost of over Rs 26,000 crore.
KFin Tech Launches mPower
Launches 'mPower Wealth' for wealth management solutions
Source: Exchange Filing
Kotak Institutional On Aadhar Housing
Initiates coverage with a target of Rs 550, implying 41% upside
Stands out versus most affordable peers due to a larger balance sheet and 7% market share
Low Non Performing Loans due to unique underwriting
Expect Aadhar to deliver 22% EPS CAGR during FY2024-27E and high teens ROE
Increase in leverage to aid core profitability with ROA of 4.4% to 4.7%
Nifty, Sensex Open Higher As HDFC Bank, TCS Lead Gains: Opening Bell
Benchmark equity indices continued their uptrend and opened higher but erased most of their gains in the early trade. Shares of HDFC Bank and Tata Consultancy Services led the gains while those of ICICI Bank weighed.
At pre-open, Nifty 50 was at 25313.40, up 0.14% or 34.70 points and the Sensex was at 82652.69, up 0.11% or 92.85 points.
In the last 12 trading sessions, the index has managed to close above its prior day’s low indicating strength in the ongoing trend, said Avdhut Bagkar technical and derivatives analyst at StoxBox. "The index is anticipated to continue to attract bullish strength provided the immediate support near 25150 remains intact on a closing basis."
Shares of HDFC Bank Ltd., Reliance Industries Ltd., Tata Consultancy Services Ltd., Larsen & Toubro Ltd., and Bharti Airtel Ltd. contributed the most to the gains.
While those of ICICI Bank Ltd., Infosys Ltd., Bajaj Finance Ltd., Bajaj Auto Ltd., and HCL Tech Ltd. weighed on the Nifty.
Most sectoral indices were higher on the NSE with Nifty Realty leading the gains. Nifty IT and Nifty PSU Bank fell the most.
Nifty, Sensex Higher At Pre-Open
At pre-open, Nifty 50 was at 25313.40, up 0.14% or 34.70 points and the Sensex was at 82652.69, up 0.11% or 92.85 points.
Rupee weakens Against US Dollar
Rupee weakened by 3 paise to open at 83.95 against the US dollar.
It closed at 83.92 on Monday.
Source: Bloomberg
Yield On The 10-Year Bond Opens Flat
The yield on the 10-year bond opened flat at 6.87%.
It closed at 6.88% on Monday.
Source: Bloomberg
Nomura On Gujarat Gas
Maintains 'reduce' on Gujarat Gas at Rs 470 target, implying 30% downside
On Latest Merger:
GSPC's tax credits to allow GGL to not have tax incidence for next 6-8 years
GSPC’s tax credits to lead to EPS accretion of 51% for GGL in FY26
Expect GGL’s sourcing gas costs to decline in coming years
Potential merger likely to create value for GGL, if approved
Highlight concerns about merging volatile businesses in a pure-play CGD entity
GGL's potential share value at Rs 730 following merger
B&K Securities On GMR Power & Infra
Initiates coverage with a Buy; target Rs 184, implying 38% upside
Focus on energy, EPC and transport
Company has installed power capacity of 3GW & 2 gas based plants of 1.1GW
Active in developing urban infra projects; 3 operational highway projects
Strengthened capital structure through conversion of $275mn of foreign bonds into equity
SOTP based target price of Rs 184 per share
PTC Industries Approves Share Allotment
Approves allotment of 5.3 lakh shares to eligible QIBs at issue price of Rs 13,199.7 per share
Source: Exchange Filing
Bajaj Housing Finance IPO Update
Sets price band at Rs 66-70 per share.
The wholly-owned subsidiary of Bajaj Finance Ltd. aims to raise Rs 6,560 crore through the IPO that will open on Sept. 9.
Tolins Tyres IPO Update
Sets IPO price band at Rs 215-226/share
Bid for issue to open on September 9 & close on September 11
Source: Company statement
Brigade Enterprises Approves QIP Floor Price
Approves floor price of QIP at Rs 1,164.7/share
Source: Exchange Filing
Brainbees Arm Invests In Frootle India & Wellspire India
Arm Globalbees Brands further invests Rs 105 crore in Frootle India & Rs 1.05 crore in Wellspire India
Frootle India & Wellspire India are step-down subsidiaries of company
Source: Exchange Filing
Global Cues
U.S. Dollar Index at 101.71
U.S. 10-year bond yield at 3.91%
Brent crude 0.50% lower at $77.13 per barrel
Nymex crude 0.37% higher at $73.82 per barrel
GIFT Nifty flat at 25,361.00 as of 07:26 a.m.
Bitcoin was uo 0.60% at $59,355.26
F&O Cues
Nifty September futures down by 0.15% to 25,340.45 at a premium of 61.75 points.
Nifty September futures open interest up by 7.23%.
Nifty Bank September futures down by 0.05% to 51,650.7 at a premium of 211.15 points.
Nifty Bank September futures open interest up by 0.06%.
Nifty Options Sept. 5 Expiry: Maximum call open interest at 26,000 and maximum put open interest at 25,000.
Bank Nifty Options Sept. 4 Expiry: Maximum call open interest at 59,000 and maximum put open interest at 51,000.
Securities in ban period: Balrampur Chini Mills, Hindustan Copper.
Pledge Share Details
HLV: Promoter Universal Hotels & Resorts Private Limited created a pledge for 3 crore shares on Aug. 29.
Navin Fluorine International: Promoter Mafatlal Impex Private Limited revoked a pledge for 3 lakh shares on Aug. 22.
Trading Tweaks
Ex/record dividend: Vinati Organics, Karnataka Bank, Ion Exchange (India), Deepak Fertilisers & Petrochemicals Corporation, Fineotex Chemical, Ganesha Ecosphere.
Ex/record buyback: Nucleus Software Exports.
Ex/record AGM: Alok Industries, Borosil Scientific, DB Corp., Jai Corp., JK Paper, Manorama, Sanghvi Movers, Schneider.
IPO Offering
Baazar Style Retail: The public issue was subscribed 4.64 times on day two. The bids were led by non-institutional investors (11.62 times), retail investors (3.75 times), and institutional investors (0.84 times).
Gala Precision Engineering: The public issue was subscribed 10.84 times on day one. The bids were led by non-institutional investors (20.72 times), retail investors (12.17 times), and institutional investors (0.86 times).
Block Deals
HDFC Bank: Copthall Mauritius Investment Limited sold 10.2 lakh shares (0.01%) at Rs 1,636.9 apiece.
Trent: Siddhartha Yog bought 10.09 lakh shares (0.28%) at Rs 7,115 apiece and Dodona Holdings Limited sold 10.09 lakh shares (0.28%) at Rs 7,115 apiece.
Bulk Deals
Shanti Educational Initiatives: Albula Investment Fund Ltd bought 47.2 lakh shares (2.93%) at Rs 122.85 apiece and LTS Investment Fund Ltd sold 47.2 lakh shares (2.93%) at Rs 122.85 apiece.
Globus Spirits: Elpro International Limited bought 1.79 lakh shares (0.62%) at Rs 1,112.88 apiece.
GMR Power and Urban Infrastructure: Authum Investment & Infrastructure Limited bought 74.91 lakh shares (1.24%) at Rs 134.16 apiece.
TCNS Clothing: Baroda BNP Paribas Mutual Fund bought 6.24 lakh shares (0.98%) at Rs 576.14 apiece, while Morgan Stanley Asia Singapore Pte sold 3.37 lakh shares (0.53%) at Rs 574.64 apiece.
Stocks to Watch
Hindustan Aeronautics: The Cabinet Committee on Security approved a proposal for procurement of 240 aero-engines (AL-31FP) for the Indian Air Force's Su-30 MKI aircraft from Hindustan Aeronautics Ltd. at a cost of over Rs 26,000 crore under the Buy (Indian) category.
Vedanta: The company approved a third interim dividend of Rs 20 per share, totalling a payout of Rs 7,821 crore.
Kaynes Technology: Cabinet-approved proposal for a new manufacturing plant with a capacity of 6.3 million chips per day. The total cost of the project is Rs 3,300 crore.
NMDC: The company received a penalty order of Rs 1,620 crore for alleged transport of iron ore without a Railway Transit Pass. The company also reported a 10% decrease in total production to 3.07 MT and an 11.3% drop in total sales to 3.14 MT in August 2024.
Welspun Corp: The board approved a $100 million investment by its subsidiary, Welspun Pipes, for upgrading HFIW pipe manufacturing capabilities in the USA.
Maruti Suzuki: The company reported a 2% increase in total production in August, reaching 1.69 lakh units year over year.
Hindustan Composites: The company will purchase 150,000 Swiggy shares for Rs 5 crore.
Lemon Tree Hotels: The company signed a licensing agreement for an 80-room hotel in Gir.
Tata Motors: The automaker received a penalty order of Rs 2 crore from the Assistant Commissioner, Jamshedpur, Jharkhand. The penalty is not expected to have a material financial impact.
Adani Green Energy: The company approved the execution of binding documents, including a joint venture agreement with ARE64L and TotalEnergies Renewables. TotalEnergies will invest an additional $444 million to form a 50:50 JV with Adani Green. The new JV will manage a 1,150 MWac portfolio, including both operational and under-construction solar assets.
HDFC Bank: The bank was fined with a penalty of Rs 5 lakh by Assistant Commissioner of CGST & Central Excise, Madhya Pradesh and a penalty of Rs. 7 lakh has been imposed on the bank by State Tax Officer, Gujarat.
JSW Steel: The company has received a GST intimation for the period of April 2019-March 2020. The tax demand was at Rs 11.42 crore, with an interest of Rs 18.45 crore and a penalty of Rs 1.79 crore.
Pidilite Industries: The company received a penalty order of Rs 44.31 crore from the Joint Commissioner, Corporate Circle, Greater Noida, Uttar Pradesh. The company expects a favourable outcome on appeal with no material financial impact.
Dabur India: The company received a demand order for ₹95.97 lakh.
Crompton Greaves Consumer Electricals: Crompton transforms Bengaluru's Satellite Town Ring Road by providing lighting solutions with its high-performance LED street lights.
Gensol Engineering: The company with Matrix Gas & Renewables became the lowest bidder for a green hydrogen project worth Rs 164 crore.
Sterlite Technologies: The company has settled its Singapore dispute with Data Management Centre for $467,400.
Techno Electric & Engineering Company: The company set Sept. 13 as the record date for a final dividend of Rs 7 per share.
Shriram Finance: The board approved a fund raise through debt securities via private placement. The issue size is Rs 500 crore, with a greenshoe option of Rs 1,500 crore.
Elpro International: The company acquired equity shares in Central Depository Services (India) Limited.
Matrimony.com: The company will consider a buyback proposal on Sept. 5.
IEX: The company's arm enters into an issuer agreement with the International Tracking Standard Foundation. The agreement authorises ICX to act as a local issuer of international renewable energy certificates in the Indian market.
Shipping Corporation of India: The company's arm gets government approval for establishment of unit at GIFT SEZ in Gujarat.
GR Infraprojects: The company will sell Aligarh Kanpur Highway to Bharat Highways InvIT and acquire Tumkur-II REZ Power Transmission from REC's unit for its Karnataka project.
ICICI Bank: The bank clarified on media reports of alleged payment of salary by ICICI Group to Madhabi Puri Buch. The bank said that no salary or ESPOs were given to Madhabi Puri Buch after her retirement, other than retiral benefits.
GIFT Nifty Trades Near 25,350
The GIFT Nifty was trading 0.04%, or 9 points higher at 25,366.00 as of 06:32 a.m.
Most markets in Asia were trading higher on Tuesday after South Korea's inflation reading for August declined to over three-year low, which raised expectation of monetary easing in the country. The consumer price index declined to 2% on an annualised basis, from July's 2.6%.
The Kospi was trading 12.71 points, or 0.47% higher at 2,693.71. The Nikkei 225 was trading 151.10 points, or 0.39% higher at 38,851.97 as of 06:19 a.m.
Meanwhile, the S&P ASX 200 was trading 23.10 points, or 0.28% down at 8,086.80 as of 06:21 a.m.
US markets were closed on Monday on account of Labour Day.
The November contract of brent crude was trading 0.41% down at $77.20 per barrel as of 06:22 a.m. The spot gold was trading 0.17% lower at 2,495.19
The benchmark stock indices recorded their best closing on Monday, with the NSE Nifty 50 extending gains for the 13th consecutive session—its longest run in decades—and the S&P BSE Sensex rising for the 10th consecutive session.
Nifty closed 42.80 points, or 0.17% higher at 25,278.70, and Sensex closed 194.07 points, or 0.24% up at 82,559.84.
Overseas investors remained net buyers of Indian equities for the third consecutive session on Monday. Foreign portfolio investors mopped up stocks worth Rs 1,735.5 crore while domestic institutional investors turned net buyers after one day of selling and offloaded equities worth Rs 356.4 crore, according to provisional data from the National Stock Exchange.
The Indian currency weakened by 5 paise to close at 83.92 against the US dollar.
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