KEY HIGHLIGHTS
Nifty, Sensex Fall From Record Highs As HUL, Infosys Decline: Midday Market Update
The NSE Nifty 50 and BSE Sensex erased gains after hitting life highs during the first two hours of Tuesday's session as declines in share prices of Hindustan Unilever Ltd., Infosys Ltd. pressured the benchmarks.
As of 12:05 p.m., the Nifty 50 was trading 22.05 points or 0.09% lower at 25,917.00, and the Sensex was trading 64.66 points or 0.08% lower at 84,863.95
Earlier in the day, the Nifty 50 rose as much as 0.16% to a fresh high of 25,981.50, and the Sensex rose 0.15% to a high of 85,058.55.
The Nifty 50 may touch 26,000 today. However, there's a possibility that the index may consolidate for sometime given the type of option setup is seen. 25,500 is a good entry point investors, said Kush Bohra, founder, Kushbohra.com, as he continues to be constructive.
The NSE Nifty Auto index scaled a fresh high. It rose as much as 0.60% to a record high of 26,966.95. Tata Motors Ltd., and Mahindra & Mahindra Ltd. were contributing the most gains in the index.
The NSE Nifty Metal index rose to the highest level since Aug 1 led by gains in Tata Steel Ltd., and Vedanta Ltd. The sentiment for these turned positive after China announced a slew of measures to struggling economy.
Hindustan Unilever Ltd., Infosys Ltd., Kotak Mahindra Bank Ltd., Axis Bank Ltd., and Bajaj Finance Ltd. weighed on the index.
Tata Steel Ltd., Larsen & Toubro Ltd., Power Grid Corp Ltd., Hindalco Industries Ltd., and ICICI Bank Ltd. added to the NSE Nifty 50 index.
On NSE, six sectors advanced, and six declined out of 12. The NSE Nifty FMCG declined the most, and the NSE Nifty Metal rose the most.
Broader markets were trading on a mixed note. The BSE Midcap was 0.02% higher, and Smallcap index was 0.10% lower.
On BSE, 10 sectors advanced, and 10 declined out of 20. The BSE Services was the worst performing sector. The BSE Metal rose over 2% to become the best performing sector.
The market breadth was evenly split between buyers and sellers. Around 1,916 stocks rose, 1,902 stocks declined, and 124 stocks remained unchanged on BSE.
China Smelters Purchase Team Meeting On Tuesday
Chinese copper smelters have raised guidance for Q4 copper processing charges. In addition, copper concentrate processing treatment and refining charges have also been raised to $35 per metric ton and 3.5 cents per pound.
The group has set price guidance for Q3 at a nine-year, at $30 a metric ton and 3 cents a pound. Slight increase in charges are due to talks with miners.
What are Treatment & Refining Charges (TC/RCs)?
TC/RCs are a key source of revenue for smelters that are paid by miners when they sell concentrate or semi-processed ore.
Potential Impact of High TC/RCs
Potential higher profitability for Chinese smelters and higher costs for copper producers as they pay more to have their concentrate processed. This can also impact copper prices, in which Indian key players are Vedanta, Hindustan Copper
Production
Top Chinese copper smelters have called for production cuts due to tightness in raw material supply. China smelters account for about 47% of world refined copper output
Source: Reuters
Allcargo Gati August Business Update
Total volume for August 2024, including surface and air express, stood at 101kt, as compared to 108kt during July 2024, an exchange filing said.
How Do You Enhance Your IPO Allotment Chances?
Initial Public Offerings or IPOs are swarming the Indian markets and there is no relenting. In September, we saw a record number of listing attempts on Dalal Street. The bull market as well as increased retail participation have ensured that there is good demand for most debutants. So, how does one increase their IPO allotment chance?
Read here.
Nifty Auto Rises To Fresh Record High
M&M, Tata Motors, and Maruti Suzuki contributed the most to the rise in index.
Tata Power Rises As Motilal Oswal Initiates Coverage
Tata Power share price rose nearly 3% on Tuesday after Motilal Oswal initiated coverage on the company, naming it a top pick in the Indian power sector. The brokerage set a target price of Rs 530, with a 'buy' rating that reflects a potential upside of 19%.
The brokerage highlighted Tata Power's diversified operations and scalability as key growth drivers. The company is undergoing a multi-year business transformation, with plans to allocate 45% of its capital expenditure from fiscal 2023 to fiscal 2027 to renewable energy projects. ta
HDFC Bank Recovers On Plan To Sell Loan Assets Worth Rs 70,000 Crore
Shares of HDFC Bank Ltd. erased early losses and rose 1.25% in trade on Tuesday, as the lender is looking to sell Rs 60,000-70,000 crore worth of loan assets to potential investors, people familiar with the matter told NDTV Profit.
AstraZeneca Pharma Rises Over 12% On Getting CDSCO Approval
The stock jumped more than 12% to hit its lifetime high of Rs 7,598. The surge was as the company received Central Drugs Standard Control Organisations approval to import and distribute Durvalumab. The drug is used with chemotherapy before surgery and alone after surgery for NSCLC (lung cancer).
L&T Gets 'Mega' Orders
The Power Transmission & Distribution (PT&D) vertical of Larsen & Toubro has won new orders in the Middle East for expanding and strengthening the electricity grids at high voltage levels.
L&T classifies order worth Rs 10,000 to 15,000 crore as 'mega order'.
Source: Exchange Filing
Nifty Metal Stocks M-Cap Increases By Over Rs 36,000 Crore
The Nifty Metal Index rose to nearly two-month high on Tuesday as risk appetite for these stock improved after China's central bank announced a slew of measures to boost the world's second largest economy. The market-cap of these companies rose Rs 36,168.53 crore to Rs 17.94 lakh crore as of 10:40 a.m.
Nifty Stocks That Hit 52-Week Highs On Tuesday
Western Carriers Shares List At 1% Discount Over Issue Price
Shares of Western Carriers (India) Ltd. listed on the BSE at Rs 170, a discount of 1.16% over the issue price of Rs 172 apiece, on Monday. The stock debuted at Rs 170.98 per share on the National Stock Exchange, marking a discount of 0.59%.
Reliance Power Rises To Over Six-Year High As Board Approves Fundraise Via Preferential Issue
Reliance Power Ltd.'s share price to over six-year high on Tuesday as the company set to raise Rs 1,524.60 crore via preferential share issuance. It will offer 46.20 crore shares at Rs. 33 apiece, the company said in an exchange filing on Monday.
SpiceJet Finalises Settlement with Engine Lease Finance Corporation
SpiceJet has successfully resolved its dispute with Engine Lease Finance Corporation through an amicable settlement. ELFC, which had previously claimed $16.7 million, has agreed to settle for an undisclosed amount, which is lower than the initial claim.
The representatives of both parties will now formalise the settlement agreement, with a view to withdrawing all ongoing litigation and ending disputes between them. This settlement marks a significant step in SpiceJet’s ongoing efforts to streamline its operations and focus on future growth.
Source: Exchange Filing
Northern Arc Capital Shares Debut At 33.46% Premium Over Issue Price
Shares of Northern Arc Capital Ltd. listed on the BSE at Rs 351 per share, a premium of 33.46% over the issue price of Rs 263 apiece, on Monday. The stock debuted at Rs 350 per share on the National Stock Exchange, marking a premium of 33.07%.
Arkade Developers Shares Debut At 37% Premium Over IPO Price
Shares of Arkade Developers Ltd. listed on the BSE on Tuesday at Rs 175.90 apiece, a premium of 37.4% over its issue price of Rs 128 per share. On the National Stock Exchange, the stock debuted at Rs 175 per share, marking a premium of 36.7%.
Nifty, Sensex Hits Fresh Record Highs
The Nifty hit a new all-time high of 25958.75 points and Sensex hit a new record high of 84988.69.
Ipca Labs Surge To Life High As Nomura Upgrades Target On Growth Expansion
Ipca Laboratories Ltd.'s shares rose to a record high after bagging a target price upgrade from Nomura on margin expansion and consistent outperformance in the domestic formulation market.
The brokerage has maintained a 'buy' rating on the stock but upgraded the target price to Rs 1,750 per share from Rs 1,502 apiece earlier. This implies a 20% upside from the previous close.
Metal Stocks Gain After China Stimulus
Metal stocks surged today after China's measures to support the economy. Nifty Metal index hit its highest since August 1 with Nalco, NMDC, and SAIL being top gainers.
Nifty, Sensex Open Lower As Infosys, HDFC Bank Drag: Opening Bell
Benchmark Indian indices bucked the trend in global markets on profit taking after their record runs as shares of Infosys and HDFC Bank dragged the most.
At pre-open, the Nifty 50 was at 25921.45, down 0.07% or 17.60 points and Sensex was at 84864.61, down 0.08% or 64 points.
"Considering the strong rally in the past 2 trading sessions; the Index seems to be overheated in the short run," said Aditya Gaggar, director of Progressive Shares. "Profit-taking correction can be expected where the zone of 25,800-25,850 will serve as a strong support area; and on the flip side, a level of 26,000 will work as a psychological barrier. "
Shares of Infosys Ltd., HDFC Bank Ltd., Reliance Industries Ltd., Hindustan Unilever Ltd., and Tata Consultancy Services Ltd weighed on Nifty. While those of JSW Steel Ltd., Hindalco Industries Ltd., Tata Steel Ltd., Larsen & Toubro Ltd., and Powergrid cushioned the fall.
Most sectoral indices were higher at open with Nifty Metal leading the gains.
Nifty, Sensex Lower At Pre-Open
At pre-open, the Nifty 50 was at 25921.45, down 0.07% or 17.60 points and Sensex was at 84864.61, down 0.08% or 64 points.
"The 25600 level would be the immediate strong support for the index which needs to be sustained to carry on with the positive move further ahead," said Prabhudas Lilladher in a report. "Sensex sustaining above the 1.61% retracement level at the 84500 zone, has gradually picked up in the last 3 sessions to make new highs and is aiming for the next near-term target of 86000 levels with bias maintained strong."
Yield On The 10-Year Bond Opens Flat
The yield on the 10-year bond opened flat at 6.76%, after it closed at 6.77% on Monday.
Source: Bloomberg
Rupee Weakens Against US Dollar
Rupee weakened by 2 paise to open at 83.57 against the US dollar after it closed at 83.55 on Monday.
Source: Bloomberg
NDTV Profit Exclusive: HDFC Bank May Offload Rs 60,000-70,000 Crore Worth Loan Assets
India's largest private sector bank is looking at selling about Rs 60,000-70,000 crore worth of loan assets to potential investors in a bid to free up liquidity and reduce its credit-deposit ratio.
The lender is likely to sell mortgage and car loans as part of this process, according to two people in the know. HDFC Bank will likely resort to passing through certificates for such sales, the people quoted above said.
Philip Capital On India Metals After China Measures
Chinese central bank reduces reserve requirement ratio by 50bps, Vikash of Philip Capital said, "We continue to maintain our positive stance of metals." His top picks include JSW Steel, JSPL, Nalco and Vedanta He also recommends to start accumulating NMDC and SAIL in staggered manner.
Nomura Raises Ipca Labs Target
Nomura has maintained a 'buy' on Ipca Labs with a higher target of Rs 1,750 as against Rs 1,502 earlier, implying 20% upside as it likes the companies consistent outperformance in domestic formulation market.
It also likes improvement in Generics and API, cost and revenue synergies expected from subsidiary Unichem and estimates 30% CAGR over FY25-27, with strong momentum post-FY27. "EBITDA Margins are expected to rise to 25-26% vs estimated 23.6% for FY27," it said. adding that focus on biologics and CDMO revival, previously impacted by USFDA issues.
Hang Seng Surges Over 2% After China Stimulus
Hong Kong's Hang Seng surged to hit its 18,713.76, its highest level since June 5. Shanghai Composite and Shenzhen Component indices also rose around 2%. People's Bank of China will slash banks' reserve requirement ratio and outstanding mortgage rates. The panel decided to cut 7-day reverse repo rate to 1.5% from 1.7%. The PBOC panel said that it might lower RRR again by 0.25-0.5 percentage point, depending on the liquidity condition. "Actions today to have neutral effect on banks' margins."
Emkay Upgrades Paytm To 'Add'; Raises Target
Emkay has upgrades its rating for the shares of One97 Communications to 'add' with target revised to Rs 750 as against 375 earlier, implying upside of 13%. It said that easing regulatory stance should pave the way for approvals from NPCI/RBI and that company is set to onboard new users/online merchants soon and, thus, drive business turnaround.
Along with this, strong cost optimization measures should put Paytm on an early path to profitability and management expects the loan distribution business to gradually re-accelerate, led by merchant loans.
The brokerage expects the company to again turn operating EBITDA ex-ESOP and UPI incentive positive by 4QFY25E.
Bombay High Court Denies Hearing HUL's Case
The Bombay High Court on Monday denied hearing Hindustan Unilever Ltd.'s case challenging a demand of over Rs 962 crores from the Income Tax Department. The petition challenged an order dated Aug. 23, 2024, issued by the Deputy Commissioner of Income Tax, which raised the demand. The issue stems from allegations that Hindustan Unilever failed to comply with the income tax provisions, which mandate tax deduction at source for purchasing a trademark registered in India. The company acquired the rights to the health food drink brand Horlicks from GlaxoSmithKline Plc. for over Rs 3,000 crore in 2020.
Motilal Oswal Initiates Coverage On India Power Cos
Motilal Oswal has assigned a 'buy' on Power Grid, JSW Energy, Tata Power, NEUTRAL on NTPC, IEX. It said it likes Power Grid's Bellwether play on Rs 2 lakh crore transmission opportunity, JSW Energy's execution, asset turnaround, robust balance sheet are key differentiators vs. peers and Tata Power's Lower earnings volatility gives scope for re-rating.
For NTPC, NTPC Green's IPO to give limited upside, the brokerage said and for IEX, the potential implementation of market coupling is a key regulatory overhang.
Emkay Initiates Coverage On GMR Power With 'Buy'
Target assigned by Emkay is Rs 180, implying 20% upside. Bull case target price set at Rs 205, implying 38% upside
The brokerage said that healthy earnings visibility on core is generating assets to support deleveraging efforts and 7.5 million smart meter contract opens up lucrative asset-light business opportunity with Bosch.
Key risks to Emkay's call are project execution, policy, resource availability, credit.
China To Cut Banks' Reserve Requirement Ratio PBOC Pan
China’s central bank has announced a sweep of support for the economy, as pressure mounts on authorities to unleash stimulus and hit this year’s growth target of around 5%. China will help banks boost lending to consumers, cut its key short-term interest rate, and lower the mortgage rate for existing housing loans, central bank governor Pan Gongsheng said Tuesday at a briefing in Beijing.
Source: Bloomberg
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Trading Tweaks
Price Band of E-pack Durable has been changed from 20% to 10% and that of Nectar Lifesciences from 10% to 5%.
Shares of Kaveri Seed will trade Ex/record AGM. Those of Concord Biotech, Crest Ventures, Dhanuka Realty have moved into short term ASM and NELCO, Rane (Madras) have moved out of short term ASM.
Block And Bulk Deals Happened Monday
Through a block deal in Capacite Infraproject, Rahul Ramnath Katyal sold 3.75 lakh shares (0.44%) and Subir Malhotra bought 3.75 lakh shares (0.44%) at Rs 396 apiece. In V2 Retail, India 2020 Fund LI sold 7.34 lakh shares (2.12%) and Motilal Oswal Mutual Fund bought 7.34 lakh shares (2.12%) at Rs 1,160 apiece through a block deal.
Through bulk deal in Senco Gold, Oman India Joint Investment Fund sold 5.89 lakh shares (0.75%) at Rs 1,280.16 apiece and ICICI Prudential Life Insurance bought 4.9 lakh shares (0.63%) at Rs 1,280 apiece. Alicon Castalloy's bulk deal had SBI Mutual Fund buying 3.72 lakh shares (2.29%), Rajeev Sikand sold 2 lakh shares (1.22%) and Pamela Trading LLP sold 1.59 lakh shares (0.97%) at Rs 1,300 apiece.
Wardwizard Innovations & Mobility, BCL Industries, BLS E-Services, HLV, Kamdhenu Ventures, Sky Gold, VIP Industries also saw shares change hands through bulk deals on Monday.
New Listing
Shares of Western Carriers (India) will debut on the stock exchanges on Tuesday at an issue price of Rs 172 apiece, Arkade Developers at an issue price of Rs 128 apiece, and Northern Arc Capital at an issue price of Rs 263 apiece.
IPO Offering
Manba Finance will open for subscription for a second day. The public issue was subscribed to 23.79 times on day 1. The bids were led by non-institutional investors (43.18 times), qualified institutional investors (2.36 times), and retail investors (27.71 times).
Stocks To Watch
Shares of Punjab National Bank, Reliance Power, Thangamayil Jewellery, and Pondy Oxides and Chemicals will react to the news of fund raise.
Those of Power Grid Corp. are likely to rise as company emerged as a successful bidder for the Khavda project to establish an interstate transmission system. Similarly Coal India, company entered into a 74-26 JV pact with Rajasthan Rajya Vidyut Utpadan Nigam for a 2x800 MW brownfield thermal project.
Mahindra & Mahindra's shares will react after its addressed reports about considering a purchase of Skoda Auto VW India, stating that it and the VW Group are actively exploring various opportunities for collaboration.
Shriram Properties might fall as an FIR has been filed against a former Tamil Nadu Minister, accusing him of being involved in Rs 28 crore payments made in 2016 related to Shriram Properties and Infra, now known as Gateway Office Parks.
GR InfraProjects will rise as it got order for Nagpur metro construction work worth Rs 904 crore.
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GIFT Nifty At 26,000; PNB, Reliance Power, G R Infraprojects, M&M, Power Grid In Focus
September futures contract of the GIFT Nifty was at 25,996.50, down by 1.5 points as of 06:55 a.m. In Tuesday's session, shares of G R Infraprojects Ltd., Mahindra & Mahindra Ltd. and Power Grid Corp. could remain in focus due to news flow. Investors will look forward to the Nifty hitting psychologically crucial 26,000 mark.
Indian equities will also track indices in Asia-Pacific, which rose on Tuesday taking cues from the overnight rise in US stocks. Investors in the region will monitor the rare briefing by the People's Bank of China, along with the Reserve Bank of Australia's policy decision, due to be published later today.
The Nikkei 225 was trading 548.79 points, or 1.45% higher at 38,272.70, and the Kospi was up 9.71 points, or 0.37% at 2,611.72 as of 06:27 a.m.
On Friday, the S&P 500 and Nadaq Composite ended 0.28% and 0.14% higher, respectively.
The November contract of the brent crude was trading 0.26% higher at $74.09 per barrel on Intercontinental Exchange as of 06:31 a.m. The Bloomberg spot Gold was 0.10% lower at $2,626.16 as of 06:33 a.m.
The NSE Nifty 50 and S&P BSE Sensex settled at the highest closing level for the third consecutive session in a row, as Bharti Airtel Ltd. and HDFC Bank Ltd. led gains. The indices rose to new intraday highs for four days in a row.
The Nifty 50 ended 148.10 points, or 0.57% higher, at 25,939.05. The Sensex closed up 384.30 points, or 0.45% at 84,928.61.
Overseas investors stayed net buyers of Indian equities on Monday for a second day.
Foreign portfolio investors mopped up stocks worth Rs 404.42 crore, while domestic institutional investors turned net buyers after a day of selling and purchased equities worth approximately Rs 1,022.64 crore, the NSE data showed.
The Indian rupee ended flat against the US dollar at 83.54 on Monday, according to Cogencis.
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