Stock Market Today: Sensex, Nifty End At Over Two-Week High Led By Finance, Tech Shares

• Rupee strengthened by 8 paise to close at 83.79 against the US dollar.

• It closed at 83.87 on Monday.

Source: Bloomberg

The Nifty extended its gains to a fourth consecutive session and the Sensex continued its rally after a one-day blip to record their highest closing since August 2 as shares of finance and IT companies led the gains.

The Nifty ended 0.51% or 126.20 points higher at 24698.85 and the Sensex closed 0.47% or 378.1 points higher at 80802.86. Intraday, both the indices rose 0.6%.

"With a bullish candle, the (Nifty) Index has filled its bearish gap zone and is now heading towards 24,870 (target of range breakout) with downside being shifted higher to 24,590," said Aditya Gaggar, director of Progressive Shares.

Shares of Reliance Industries Ltd., Larsen & Toubro Ltd., Axis Bank Ltd., Kotak Mahindra Bank Ltd., and SBI Life Insurance Co. Ltd. contributed the most to the gains of Nifty.

While those of Bharti Airtel Ltd., ITC Ltd., Oil & Natural Gas Corp. Ltd., Adani Enterprises Ltd., and Apollo Hospitals Enterprises Ltd. weighed on the index.

Except Nifty Media and Nifty FMCG, all sectoral indices closed higher with Nifty PSU Bank rising the most.

Market breadth was skewed in favour of buyers. Around 2,394 stocks rose, 1,544 stocks declined, and 99 remained unchanged on BSE.

Broader markets ended higher on BSE. The BSE Midcap and Smallcap indices ended 0.98% and 0.52% higher, respectively.

On BSE, 19 sectors ended higher out of 20 with the BSE Financial Services emerging as the top performing sector. The BSE Capital Goods was the only sector which ended in negative.

• Nifty ends higher in fourth consecutive session

• Sensex resumes uptrend after one-day blip

• Both the indices closed at their highest levels since August 2

• Nifty ends 0.51% or 126.20 points higher at 24698.85

• Sensex ends 0.47% or 378.1 points higher at 80802.86

• Broader indices also ended higher; Nifty Midcap 100 ended 0.84% up and Nifty Smallcap 250 rose 0.54%

• Except Nifty Media and Nifty FMCG, all sectoral indices closed higher; Nifty PSU Bank rose the most

• SBI Life and HDFC Life were the top Nifty gainers

The stock was the top gainer among Nifty stocks.

To sell 103 acres land parcel in Hyderabad to Mahindra University for Rs 535 crore

Source: Exchange filing

Arm gets US FDA approval for Glycopyrrolate oral solution

Source: Exchange filing

US FDA inspection at Goa facility ends with 'Voluntary Action Indicated' classification

Source: Exchange filing

Shares of IndusInd Bank Ltd. gained 2.33% on Tuesday after the Reserve Bank of India granted approval to the bank for setting up a wholly owned subsidiary to undertake the asset management business of mutual funds.

• Oil & gas sector and RIL to account for 60% of this spending

• Investments to increase vertical integration and achieve net zero targets will keep spending high

• Infra spending, increasing energy consumption and rising demand for connectivity to support earnings

Source: Moody’s Ratings

• FIIs have now been pushed in the background

• Money coming from SIPs has completely changed the game

• Everybody is waiting for correction but all corrections have been bought into

• Market went down on Yen carry trade, hence everyone started talking about it

• Board approves second interim dividend of Rs 19/share

• To pay total dividend of Rs 8,028 crore for FY25

Source: Exchange Filing

Shares of Sequent Scientific Ltd. jumped over 11% to a two-year high on Tuesday after winning pre-qualification approval from the World Health Organization for an active pharmaceutical ingredient to treat parasite infection.

Mazagon Dock fell the most among defence stocks as ICICI Securities maintains sell rating on the stock with a target of Rs 1,165, implying 73% downside from current levels.

Arm Greaves Finance in pact with River Mobility under 100% EV-focused lending platform evfin.

Source: Exchange Filing

Shares of Hi-Tech Pipes Ltd. hit their lifetime high on Tuesday after the company received orders worth Rs 105 crore for supplying electric resistance welded steel pipes to key customers in the renewable energy sector.

Shares of Ola Electric Mobility Ltd. erased their morning gains after hitting a fresh highest level since its listing on Aug. 9 Tuesday.

Shares of Saraswati Saree Depot Ltd. listed on the BSE on Tuesday at Rs 200 apiece, a premium of 25% over its issue price of Rs 160 per share. On the National Stock Exchange, the stock debuted at Rs 194 per share, marking a premium of 21%.

Shares of Zomato fell over 1% on Tuesday after about 2.2% equity stake changed hands as Antfin Singapore Holding Pte. proposed to offload stake.

About 20.7 lakh shares or 2.2% equity changed hands in 10 bunched trades, according to Bloomberg data.

The Nifty Pharma index rose in the third consecutive session to record a new lifetime high of 22,346.45 today. Granules India and Mankind Pharma rose the most.

All constituents of the index rose with Coforge and Mphasis leading the gains. Shares of HCL Tech traded flat and those of TCS hit a fresh lifetime high. The index rose in the seventh consecutive session today, logging its best streak since seven sessions ended January 19, 2023.

UBS Global Research started coverage on KEI Industries Ltd. as the company's earnings are compounding consistently because of its strong presence in wire and cables segment.

In pact with Salesforce to launch innovative sustainability solutions

Source: Exchange Filing

UBS highlighted the company as a prime beneficiary of the burgeoning electrification infrastructure sector.

The scrip rose as much as 4.04% to Rs 6,884 apiece, the highest level since August 1, 2024. It pared gains to trade 3.62% higher at Rs 6,855 apiece, as of 09:20 a.m. This compares to a 0.22 advance in the NSE Nifty 50 Index.

It has risen 24.69% on a year-to-date basis. Total traded volume so far in the day stood at 0.39 times its 30-day average. The relative strength index was at 57.69.

Out of 33 analysts tracking the company, 23 maintain a 'buy' rating, 6 recommend a 'hold,' and 4 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 5.5%.

Benchmark equity indices opened higher after a flat close today as Reliance Industries and Tata Consultancy Services led gains.

At pre-open, the Nifty was at 24648.90, up by 0.44% or 107.75 points and the Sensex rose 0.36% or 285.89 points to 80722.73.

Technically, a narrow range of activity was seen after the market's initial gap, according to Shrikant Chouhan, head of equity research at Kotak Securities. "In our view, the broad market texture is still positive, but a fresh uptrend rally is possible only after breaking 24700/80900, above which the market may move up to 24950/81700," he said.

"On the flip side below 24500/80300 intraday selling pressure is likely to increase and indices may retest the levels of 24400-24350/80000-79800."

Shares of Tata Consultancy Services Ltd., Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd., and UltraTech Cement Ltd. contributed the most to the gains.

While those of Oil & Natural Gas Corp. Ltd., Bharti Airtel Ltd., ITC Ltd., HCL Tech Ltd., and Power Grid Corp. Of India Ltd. weighed on the Nifty.

Except Nifty Realty, all sectoral indices opened higher with Nifty IT leading the gains.

Gets order worth Rs 105 crore from renewable energy sector for supply of steel pipes

Source: Exchange Filing

At pre-open, the Nifty was at 24648.90, up by 0.44% or 107.75 points and the Sensex rose 0.36% or 285.89 points to 80722.73.

• The yield on the 10-year bond opened flat at 6.86%.

• It closed at 6.86% on Monday.

Source: Bloomberg

• The rupee opened flat at 83.87 against the US dollar.

• It closed at 83.87 on Monday.

Source: Bloomberg

• Opens 90-day positive catalyst watch

• Target price at Rs 380 implies 11% upside

• OMCs have underperformed Nifty in the last 6months

• Underperformance due to refining and marketing margins, and elections

• Factors of underperformance now reversing

• FY25-26E earnings still around 15-20% ahead of consensus

• Dividend yield of 4-5% supportive

• Retains Neutral Rating on IndusInd; target of Rs 1,580 implies 17% upside

• RBI approval for asset management business

• Co can now generate revenue as a ‘manufacturer’ of mutual funds

• Distribution business is just 0.4% of PBT, significantly lower than peers

• Views development as positive at the margin, but scale to take time

• Initiates 'Buy', target price of Rs 6,150, implying 40.8% upside

• Highest presence among peers in cables and wires segment

• Sees scope for market share gains in branded housing wires and cables

• Believes ramp up of branded wires to drive returns and cash generation

• Stronger balance sheet and improving brand strength to help expand product range

• Expect topline and EBITDA CAGRs of 22% and 31% during FY25-27E

• Estimate earnings CAGR of 31% between FY24-27E

• Downside risks: Slower domestic infrastructure creation, delays in capex

• Maintains 'buy' with target price of Rs 3,180 from 3340 earlier

• New target implies 15% upside

• Tougher terrain ahead for SUVs; tractors treading well

• FY24 was the “year of SUVs” for M&M

• FY25 is expected to see better momentum in tractor segment

• SUV demand for the company has moderated vs our earlier expectations

• Cut volume estimates for SUV segment, resulting in slight cuts in earnings estimates

• Keep tractor estimates unchanged for now

• Could be possible upside risks to tractor numbers on better than expected festive demands

• Top pick in the sector would be Maruti Suzuki

• Initiates coverage with 'buy' and target price of Rs 8,550, implying 27% upside

• Major beneficiary of electrification infrastructure creation

• Presence in 40% of the domestic electrification market, robust competitive positioning

• Distribution-led export business model offers incremental growth potential

• Growth-levered business model, highest investment among peers

• Led by capacity expansion, ramp up in ad spends and B2B focus

• Significant room to grow addressable market revenue share; 2nd largest to Havells

• FMEG consumer pull is key, expect FMEG Profitability at 5%

• Forecast revenue/earnings growth of 20%/23% in FY24-27

• Overweight stance on staple companies owing to favourable risk-reward dynamics and anticipated volume recovery

• Maintains cautious stance on discretionary stocks; and positive view on jewellery companies

• Expect that the volume improvement trajectory for staples will continue in FY25

• Volumes aided by stable retail inflation, a healthy progress of the monsoon season, and government’s budgetary allocation towards boosting the rural economy

• Paints weak discretionary demand and the changing competitive landscape are adversely affecting growth

• Margins of innerwear companies were affected by increased discounts and volatile raw material prices

• Liquor companies demand faced challenges despite the seasonality due to election-related restrictions and a lack of approvals for interstate transfers

• For QSR’s pace of recovery is expected to be slow, which will likely keep operating margins under pressure

• Optimistic about the jewellery sector and anticipate a continued rapid transition in consumer buying habits from informal/local to formalized channels

• Top picks: HUL, GCPL, and Dabur Kalyan Jewellers and Titan

• Maintains 'buy' on Bharat Petroleum at Rs 333.2 target 14% upside

• Opens 90-day positive catalyst watch on the stock

• Lower chance of fuel rate cuts a positive sign for marketing margins

• Expect gross refining margins to improve sequentially

• Believe integrated margins will improve sharply over Q2-Q3FY25

• Q3FY25 earnings to be boosted if govt announces compensation for LPG losses

• FY25-26 earning estimates remain at 15-20%

• Expects the current $8 billion segment to be worth $20 billion in FY30

• Shifting global supply chain and incumbents' sizeable capacity should lift export revenue from $2 billion in FY24 to $5 billion in FY30

• Revenue and EBITDA CAGRs for UBS's cable and wire coverage to rise 20%/25% in FY24-28E

• Favourable supply-demand dynamics to benefit industry leaders

• Top-line and margin expansions have driven a re-rating for the C&W segment

• Valuations in line with the broader market and seemingly low near-term de-rating risks

Maintains Buy with a target of Rs 1,550, implying 26% upside

Management Meet Takeaways

• Positive on tendering environment across key verticals and geographies

• FY25 growth guidance of 20%, Profit Before Tax margin of 4.5%-5%

• Cashflow of INR 550cr on divestment of non-core assets and improving ROCE

• Co is disciplined in order picking and has an impeccable execution track record

• Board approves raising of funds via issue of 56 lakh shares on preferential basis

• Issue price of preferential issuance of shares at Rs 714/share

• Board approves issuance of 13 lakh fully convertible warrants at issue price of Rs 750/share

Source: Exchange Filing

• U.S. Dollar Index at 101.87

• U.S. 10-year bond yield at 3.87%

• Brent crude down 0.06% at $77.61 per barrel

• Nymex crude down 0.50% at $74 per barrel

• GIFT Nifty was flat at 24,653.00 as of 7:22 a.m.

• Nifty August futures up by 0.04% to 24,595 at a premium of 23 points.

• Nifty August futures open interest down by 3%.

• Nifty Bank August futures down by 0.27% to 50,485 at a premium of 117 points.

• Nifty Bank August futures open interest up by 3%.

• Nifty Options Aug. 22 Expiry: Maximum call open interest at 25,000 and maximum put open interest at 24,000. 

• Bank Nifty Options Aug. 21 Expiry: Maximum call open interest at 53,000 and maximum put open interest at 51,900.

• Securities in ban period: Aarti Industries, Aditya Birla Fashion, Balrampur Chini Mills, Bandhan Bank, Birlasoft, Chambal Fertilisers & Chemicals, GNFC, Granules, Hindustan Copper, India Cements, IndiaMart InterMesh, LIC Housing Finance, Manappuram Finance, NMDC, PEL, PNB, RBL Bank, SAIL, and Sun TV.

• Ex/record dividend: Balkrishna Industries, IRB Infrastructure Developers, Titagarh Rail Systems, Dr Lal Path Labs, the Phoenix Mills, PI Industries, Rain Industries, Sun TV Network, Apar Industries, AIA Engineering, the South Indian Bank, and JK Paper.

• Ex/record AGM: Titagarh Rail Systems, Apar Industries, The South Indian Bank, Vodafone Idea, JK Paper, Saregama India.

• Ex/record buyback: AIA Engineering.

• Moved out short-term ASM Framework: Mukka Proteins.

• DCX Systems: NCBG Holdings Inc. sold 29.59 lakh shares (2.66%) at Rs 337.95 apiece. Neomile Growth Fund, Series I, bought 7.39 lakh shares (0.66%) at Rs 337.95 apiece and Upadhyaya Ajay Shiv Narayan bought 15 lakh shares (1.35%) at Rs 337.95 apiece.

• Prudent Corporate Advisory Services: Rameshchandra Chimanlal Shah sold 6.12 lakh shares (1.47%) at Rs 2,450 apiece and Sanjay Rameshchandra Shah sold 4.12 lakh shares (0.99%) at Rs 2,450.05 apiece. On the other hand, Societe Generale bought 2.75 lakh shares (0.66%) at Rs 2450 apiece.

• Ujjivan Small Finance Bank: Ardisia sold 1.7 crore shares (0.87%) at Rs 41.11 apiece.

Ethos: Bandhan Mutual Fund bought 3 lakh shares (1.22%) at Rs 3,346 apiece. Mahen Distribution Ltd. sold 1.6 lakh shares (0.65%) at Rs 3,346 apiece, and Master Capital Services Ltd. sold 1.4 lakh shares (0.57%) at Rs 3,346 apiece.

Interarch Building Products:  The public issue was subscribed 3.2 times on day 1. The bids were led by non-institutional investors (7.85 times), retail investors (2.76 times), and qualified institutional investors (0.27 times).

• Saraswati Saree Depot: The company's shares will debut at an issue price of Rs 160 on the stock exchanges on Tuesday. The Rs 160-crore IPO was subscribed 107.52 times on its third and final day. The bids were led by non-institutional investors (358.65 times), institutional investors (64.12 times), and retail investors (61.88 times).

• Tata Motors: The company sets Sept. 1 as the record date for determining shareholders eligible for DVR share swaps.

• Bajaj Auto: The company will make a Rs 211 crore provision in the second quarter due to the withdrawal of the indexation benefit and the change in tax rate.

• IndusInd Bank: The bank received the RBI's nod for undertaking mutual fund business via a new subsidiary.

• HCL Technologies: Shiv Walia will replace Prateek Aggarwal as the chief financial officer, effective Sept. 6.

• Vedanta: The company’s shareholding in Hindustan Zinc was reduced to 63.42% after an offer for sale.

• Hazoor Multi Projects: The company emerged as the lowest bidder for Maharashtra State Infra Development Corp.'s project worth Rs 274 crore.

• Share India Securities: The company has rescinded its investment by acquiring equity shares of DSM Fresh Foods Ltd., considering the negative feedback received from the company's investors and stakeholders.

• Poly Medicure: The company opened its qualified institutional placement and set the floor price at Rs 1,880.69 per share.

• Sequent Scientific: The company received prequalification approval from the World Health Organisation for albendazole, an active pharmaceutical ingredient.

• Hi-Tech Pipes: The company approved raising Rs 600 crore via QIP or other means.

• Olectra Greentech: The company's stake in a special purpose vehicle for executing a MSRTC contract falls to 1% from the initial 34%.

• Motilal Oswal Financial Services: The company approved the proposal to raise Rs 200 crore through non-convertible debentures on a private placement basis.

Share indices in Asia-Pacific region were trading higher during early trade on Tuesday as market participants await China's loan prime rate and the Reserve Bank of Australia's August policy minutes.

The Nikkei 225 was 1.36% higher at 37,898.52, and the S&P 500 was 0.97% higher at 5,608.25 as of 6:15 a.m.

US stocks rose for the eighth consecutive session, marking the longest winning streak of 2024, as investors anticipate that the Federal Reserve may soon signal a shift towards reducing interest rates.

On Monday, the S&P 500 and Nasdaq Composite settled 0.97% and 1.39% higher, respectively. The Dow Jones Industrial Average ended 0.58% higher.

Brent crude was trading 0.18% lower at $77.52 per barrel as of 06:18 a.m. The Bloomberg Spot Gold was 0.07% higher at $2,506.06 as of 06:19 a.m.

GIFT Nifty's August futures contract was trading flat at 24,652.50 as of 7:06 a.m.

The Indian benchmark indices ended mixed on Monday as the NSE Nifty 50 closed 31.50 points or 0.13%, higher at 24,572.65, and the S&P BSE Sensex settled 12.16 points or 0.02%, lower at 80,424.68.

Overseas investors turned sellers of Indian equities on Monday after a session of buying. Foreign portfolio investors offloaded stocks worth Rs 2,667.5 crore, while domestic investors stayed net buyers for the 11th consecutive session and bought equities worth Rs 1,802.9 crore, according to provisional data from the National Stock Exchange.

The Indian rupee strengthened by 8 paise to end at 83.87 against the US dollar.