KEY HIGHLIGHTS
Last-Hour Recovery Help Sensex, Nifty Post Record Close; HDFC Bank, Axis Bank Lead: Market Wrap
The NSE Nifty 50 and BSE Sensex recovered from day's low in the last leg of the trade to end the Wednesday's at record close. HDFC Bank Ltd. and Axis Bank Ltd. added to the gains to the index. This is the fifth consecutive session the India's benchmarks recorded fresh highs.
The Nifty 50 ended 63.75 points or 0.25% higher at 26,004.15, and the Sensex ended 255.83 points or 0.30% higher at 85,169.87
The Nifty 50 ended at the highest closing level for fourth session in a row.
In the last few minutes of the trade, the Nifty 50 gained 0.36% to a record high of 26,032.80, and the Sensex rose 0.39% to a fresh high of 85,247.42.
Earlier in the day, the Nifty 50 declined 0.27% to 25,871.35, and the Sensex declined 0.20% to 84,743.04.
"For major part of the session, the Index remained rangebound but a sudden spurt in the last hour of the trading session propelled the Index to end the session at 26,004.15 with gains of 63.75 points," said Aditya Gaggar, director, Progressive Shares.
On the sectoral front, Media was the top performer followed by Energy and Realty while PSU Banking and IT were the major laggards. Mid and Smallcaps corrected by 0.63% & 0.42% and underperformed the Frontline Index. As indicated yesterday, the Index has virtually tested its immediate support of 25,850 and reversed to form a bullish candle on the daily chart suggesting a trend continuation to rally till 26,200 while the support level is shifted higher to 25,950, Gaggar added.
HDFC Bank Ltd., Axis Bank Ltd., Power Grid Corp of India Ltd., ICICI Bank Ltd., and NTPC Ltd. added to the index.
Tata Motors Ltd., Kotak Mahindra Bank Ltd., Tech Mahindra Ltd., LTIMindtree Ltd., and State Bank of India Ltd. limited gains in the index.
On NSE, seven sectors advanced, four declined, and one remained unchanged out of 12. The NSE Nifty PSU Bank declined the most, and the NSE Nifty Media rose the most.
Broader indices underperformed. BSE Midcap closed 0.53% lower and BSE Smallcap closed 0.35% lower.
Eleven out of 20 sectoral indices ended lower and nine rose. BSE Power rose the most.
Market breadth was skewed in the favour of sellers. Around 2,243 stocks fell, 1,711 rose, and 111 remained unchanged on the BSE.
Rupee Strengthens Against US Dollar
Rupee strengthened by 7 paise to close 83.60 against the US dollar. It closed at 83.67 on Tuesday, according to data on Bloomberg
Market At Close
The NSE Nifty 50 and BSE Sensex posted fresh highs during last few minutes of the trade.
The Nifty 50 ended at the highest closing level for fourth session in a row.
HDFC Bank Ltd., and Axis Bank Ltd. were the top gainers in the index.
The NSE Nifty Auto index rose 0.70% to a fresh high of 27,108.45. Mahindra & Mahindra Ltd. and Apollo Tyres Ltd. were lead contributors to the index.
The NSE Nifty Midcap 150 rose 0.10% to a fresh high of 22,515.40. It settled 0.61% lower 22,357.40.
Adani Enterprises Incorporates Adani GCC
Adani Enterprises Ltd. incorporated a wholly-owned subsidiary Adani GCC Pvt. on Sept 24, the company said in an exchange filing.
Disclaimer: NDTV is a subsidiary of AMG Media Networks Limited, an Adani Group Company.
Power Grid Hits Record High After Bagging Khavda Project
Shares of Power Grid Corp of India rose as much as 4.63% to Rs 366.25, the highest level since its listing. The company emerged as the successful bidder for the Khavda project to establish an interstate transmission system.
The stock was trading 2.80% higher at Rs 359.70 apiece as of 12:40 p.m.
Arkade Developers' IPO Proceeds For Three Ongoing Projects, Says Chairman
Objects of the initial public offer was to suffice funds for three ongoing projects, Arkade Developers' Managing Director and Chairman Amit Jain said. The company also aims to use proceeds for land development.
Arkade Developers' focus will continue to remain in Mumbai Metropolitan Region and is not looking for expansion beyond, said Jain. Collections will broadly remain in line with pre-sales.
Land development preferred more over redevelopment projects. The company has zero development debt level, he said.
Easy Trip Falls To Nearly One-Year Low
Shares of Easy Trip Planners Ltd. declined 8.78% to Rs 37.38, the lowest level since Dec 21, 2023. It was trading 8.47% lower at Rs. 37.52 apiece as of 11:08 a.m., as compared to 0.08% decline in the NSE Nifty 50 index.
Lemon Tree Plans To Renovate 3,000 Rooms In FY25, Says MD Keswani
Lemon Tree Hotels Ltd. plans to renovate 3,000 rooms in the current year, and 1,500 rooms by financial year 2027–2026, said Managing Director Patanjali Keswani.
Normally, Lemon Tree renovates one-sixth of hotels every year, didn't do it for 4-5 years, Keswani said in an interview to NDTV Profit.
The July–September will be better than the previous quarter in terms of performance, he said. Lemon Tree expects margin profile to remain on similar levels in second quarter. The best quarter for the company is Jan–March.
Lemon Tree's 20% of inventory to remain shut in the second quarter. The company expects average rates to go up by 12-13% once renovation is complete, Keswani said.
KRN Heat Exchanger IPO Oversubscribed Within Minutes Of Opening
The IPO was subscribed 1.71 times as of 10:21 a.m. on Wednesday.
Qualified institutional buyers: Nil.
Non-institutional investors: 3.69 times.
Retail investors: 1.82 times.
JSPL, JSW Steel ICICI Securities' Top Pick, Says Lead Metal Analyst
Jindal Steel & Power Ltd. and JSW Steel are ICICI Securities Ltd.'s top pick in metal segment. In non-ferrous sector, the brokerage prefers Hindalco Industries Ltd, Lead Metal Analyst Amit Dixit said to NDTV Profit in an interview.
ICICI Securities expects metal companies to not have Ebitda per tonne impacted meaningfully in second quarter of financial year 2024–25, Dixit said.
Indian domestic steel consumption remains strong. Steel companies exposed to external raw material are at an advantage, while Steel companies that have captive raw materials do not have much advantage, he said.
PC Jeweller Hits Highest Since April 2019 As Board To Consider Stock Split
Shares of PC Jeweller climbed to an over five-year high after the company announced that its board will consider and approve share split on Sept 30 in the ratio to be determined on the same date.
CLSA on Oil & Gas
CLSA expects a retail fuel price cut after Oct 5. It believes the government may also raise excise duty on auto fuels.
The hike in excise duty to bring down breakeven price for diesel and petrol. The lower retail prices, higher duties make IOCL, BPCL, HPCL if crude prices rise above $80-85 per barrel, the brokerage said.
Lower than Rs 5 per litre diesel price cut to not impact IGL, MGL's prospects. CLSA believes diesel and petrol marketing margins have shot up to Rs13/10 per litre
HDFC Bank Hits Two-Month High As HSBC Raises Target Price
HDFC Bank Ltd.'s share price hit a two-month high on Wednesday after HSBC raised its target price for the stock while maintaining a 'Buy' call.
The development comes a day after NDTV Profit in an exclusive report said that the private lender is looking at selling about Rs 60,000-70,000 core worth of loan assets to potential investors.
Piramal Pharma Share Price Boosts On Jefferies Backing With Target Price Update
Shares of Piramal Pharma Ltd. rallied over 8% as Jefferies reaffirmed its 'buy' rating on the pharmaceutical company, citing promising long-term growth prospects. The investment firm raised its price target from Rs 195 to Rs 260, implying a 17% potential upside.
Delta Corp Hits Over Two-Month High After Announcing Demerger Of Real Estate Business
Delta Corp Ltd. jumped to over two-month high on Wednesday morning after it announced to demerge its real estate and hospitality business. Upon completion of the demerger to its unit, Delta Penland Ltd., shareholders of the company will receive share in 1:1 ratio, it said in an exchange filing on Tuesday.
Nifty, Sensex Open Lower As Infosys, ICICI Bank Drag: Opening Bell
The NSE Nifty 50 and BSE Sensex opened lower on Wednesday as shares of Infosys Ltd., and ICICI Bank Ltd. dragged. As of 09:17 a.m., the Nifty 50 was trading 23.90 points or 0.1% lower at 25,916.50, and the Sensex was trading 53.25 points or 0.1 lower at 84,860.79.
Gains on Asian share indices provided support to the India's benchmark indices.
"Currently, the index is trading 2.5% away from the mean. It lacks a clear follow-through, indicating a potential sideways trend as it accumulates strength briefly to support further upside momentum," said Ameya Ranadive, senior technical analyst, StoxBox.
Reliance Industries Ltd., ICICI Bank Ltd., HDFC Bank Ltd., Infosys Ltd., and Bajaj Auto Ltd. weighed on the index.
Power Grid Corp of India Ltd., Larsen & Toubro Ltd., ITC Ltd., Titan Co. Ltd., and Hindalco Industries Ltd. added to the index.
On NSE, eight sectors declined, three advanced, and one remained flat out of 12. The NSE Nifty Realty declined the most. The NSE Nifty Metal was leading the gains as optimism from China's stimulus continue to support.
The NSE Nifty Auto index rose 0.48% to a fresh high of 27,049.95 shortly after open as Mahindra & Mahindra Ltd. and TVS Motor Ltd. rose.
Broader markets were trading on a mixed note. The NSE Nifty Midcap 150 was trading 0.17% lower at 22,458.25 after scaling fresh high during open.
The NSE Nifty Smallcap 250 was 0.15% higher at 18,611.10 as of 09:28 a.m.
The BSE Midcap was 0.09% lower, and BSE Smallcap was trading 0.25% higher.
On BSE, 11 sectors declined, and nine advanced. The BSE Utilities rose the most, and the BSE Realty declined the most.
Market breadth was skewed in favour of buyers. Around 1,681 stocks rose, 1,168 stocks declined, and 119 stocks remained unchanged on BSE.
Watch India Market Open At NDTV Profit
Hyundai Motor Gets SEBI's Permission To Enter Market
The Securities Exchange Board of India permitted Hyundai Motor India for its initial public offer, NDTV Profit reported citing sources.
Nifty, Sensex Trade Lower At Pre-Open
At pre-open, the NSE Nifty 50 was trading 0.16% lower at 25,899.45, and the BSE Sensex was trading 0.09% lower at 84,836.45.
Snowman Logistics Appoints New CEO
Sunil Prabhakaran Nair resigned as Chief Executive Officer and Whole Time Director. The company appointed Padamdeep Singh Handa as Whole Time Director & CEO, it said in an exchange filing
HSBC Constructive On HDFC Bank
Retains Buy, Hikes target price from Rs 1,870 to 2,010, which implied a14%
Media articles of sell down of 3% of loan book to bring down Loan to Deposit Ratio
Bank seems to be acting on stated intentions
Articles state that low yielding auto and mortgage loans will likely be sold
Further sell-downs to accelerate a return to normal LDR levels
Build in a sharp slowdown in headline loan growth over FY25-26e, LDR of 93%
Expect a 0.5-3% cut in FY25-27 EPS estimates, no changes in Book Value
Increase value ascribed to HDB Financial and upgrade core multiple to 2.5x Price to Book
Yield On The 10-Year Bond Opens Flat
The yield on the 10-year bond opened flat at 6.75%. It closed at 6.76% on Tuesday, according to date on Bloomberg.
Rupee Strengthens Against US Dollar
Rupee strengthened by 9 paise to open 83.58 against the US dollar. It closed at 83.67 on Tuesday, according to date on Bloomberg.
Jefferies On Piramal Pharma
Investor Day Key Takeaways:
Maintain buy with target price of Rs 260; upside 20%
Aim for 2x revenue and 3x growth in Ebitda by FY30
Revenue growth achievable led by CDMO contracts
Expects operating leverage and improvement in ROCE
Co expects 1x net debt to Ebitda by FY30 from 3.4x in FY24
Expects EBITDA to increase by 4-10% on stronger margins
Goldman Sachs on India Equity
India is likely to be among the fastest growing economies in medium-term
India’s earnings have stabilised after a decade long downcycle
Mid-teen profit growth momentum may sustain towards 2030
Estimate MSCI India’s profits to grow at 14% CAGr in next 6 years
Profit pool likely to shift towards Investment Cyclicals
Investment Cyclicals includes Autos, Real Estate, Chemicals, Industrials
It could see the largest rise in profit share, to become second largest profit pool with 25% profit share
Consumer Cyclicals could see the highest absolute growth
An investment upcycle could benefit asset heavy segments like retail, restaurants, hotels
There may be rotation in growth leadership towards Power and New Energy
Financials and Healthcare which led growth recently may lag
Here are 20 Goldman Sachs Buy-rated stocks -
RIL, L&T, NTPC, M&M, UltraTech, Power Grid, Adani Ports, IndiGo, Eicher Motors, Havells, Polycab, Ashok Leyland, Phoenix Mills, Uno Minda, Hitachi Energy, Astral, Embassy REIT, Kajaria, Blue Dart, Amber
Princeton Digital To Set Up Data Center At Mindspace REIT's Airoli Business Park
Princeton Digital Group will set up data center campus at Mindspace REIT’s Business Park at Airoli West, the company said in an exchange filing.
Stocks To Watch: MCX, HDFC Life Insurance, Delta Corp In Focus
Multi Commodity Exchange Of India revised transaction fees on futures and options contracts effective Oct. 1. Futures contracts to see a transaction fee of Rs 2.10 per lakh of turnover value and for options contracts Rs 41.80 per lakh of premium turnover value. HDFC Life Insurance Co. approved the raising of Rs 2,000 crore through NCDs. Delta Corp approved the demerger and listing of hospitality and real estate businesses into Delta Penland. Shareholders will receive one share of Delta Penland for every share held in Delta Corp.
A fire incident occurred in the control room at the Trombay plant of Tata Power Ltd. No injuries or loss of life have been reported. The company is in the process of assessing the actual damage caused by the fire. Hindustan Foods The company initiated a merger of soups, spices, and seasoning manufacturing facilities in Nashik. Gillette India: P&G Bangladesh terminated the distribution agreement effective Dec. 31. The company will have the impact of the proportionate drop in net sales. Net sales under the agreement accounted for 2% of total net sales.
Global Cues: Yuan Rises Over One-Year High; Dollar Index Falls
The offshore Chinese yuan rose past 7.00 mark against the US dollar for the first time since May 2023 as hopes started to rise for the recovery of China's economy post stimulus package announcement. The Chinese yuan rose 0.23% higher at 6.9951 against the US dollar so far, according to data on Bloomberg.
The dollar index lost ground in Asian trade on Wednesday as weak US consumer confidence data raised concerns about the economy. The data from the Conference Board showed the biggest drop in consumer sentiment in year, Bloomberg reported.
The dollar index was trading 0.18% lower at 100.29 as of 08:06 a.m., compared to Wednesday's close of 100.47. T
The benchmark US 10-year Treasury note declined after the lower US consumer confidence data showed signs of weakness in the world's largest economy. It closed 0.56% lower at 3.73%, according to data on Bloomberg terminal.
However, on Wednesday, the yield on the US 10-year Treasury note gained some ground. It was trading 0.18% higher at 3.74%.
Crude oil prices declined on Wednesday after posting biggest gain in a week on rising tension in the middle east. The November contract of crude oil on Intercontinental Exchange was trading 0.31% lower at $74.94 a barrel as of 08:22 a.m.
On Tuesday, the price rose as much as 2.67% to $75.87 a barrel.
Asia Markets: CSI 300 Jumps The Most In One Year; Hang Seng Records Best Day In Seven Months
The benchmark indices in Asia-Pacific were trading higher on Wednesday as China's stimulus continued to fuel positive sentiment among investors with the CSI 300 recording the best intraday gain since Aug 28, 2023.
The Hang Seng index jumped over 3% to log the best intraday gain since March 12. The index was trading 405.97 points or 2.14% higher at 19,417.95 as of 07:55 a.m, according to data available on Bloomberg.
People's Bank of China announced rate cuts to increase lending power of the banks to infuse cash in the struggling economy on Tuesday. World's second largest economy has been grappling with challenges for a while now. Most of the countries in the Asia-Pacific region share deep trade ties with China.
Asia-Pacific shares also took support from overnight gains on Wall Street. The S&P 500 posted its 41st record of this year before ending 0.25% higher at 5,732.93. The Dow Jones Industrial Average also hit fresh high and settled
GIFT Nifty Below 26,000; Delta Corp, HDFC Life Insurance, Hindustan Foods & MCX Shares Expected To React
The GIFT Nifty was trading below 26,000 in early trade on Wednesday. Investors may monitor share prices of Delta Corp, HDFC Life Insurance Co., Hindustan Foods Ltd., and Multi Commodity Exchange of India as they are expected to react in today's session.
The GIFT Nifty was trading 6 points or 0.02% higher at 25,935.50 as of 06:36 a.m.
Motilal Oswal Financial Services expects the ongoing momentum to continue in the market with sectorial rotation, said Siddhartha Khemka, Head, Research, Wealth Management.
"On the upside, 26,000 will act as an immediate hurdle for Nifty 50. If the index sustains above 26,000 it could test the levels of 26,200. On the downside, 25,600 will serve as a strong support for the index," said Hrishikesh Yedve, Assistant Vice President, Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.
On Tuesday, the NSE Nifty 50 touched 26,000 level for the first time. The index took 37 session to complete its last 1,000-point journey.
After touching the milestone, the index ended on a muted note. However, it managed to post the highest closing level. The Nifty 50 settled 1.35 points or 0.01% higher at 25,940.40.
The BSE Sensex crossed 85,000 and rose to a fresh high of 85,163.23. The index ended down by 0.02%, or 14.57 points at 84,914.04.
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