Stock Market Live: Nifty, Sensex Fall After Hitting Fresh Highs As Infosys, HUL Drag

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.

M&M, Tata Motors, and Maruti Suzuki contributed the most to the rise in index.

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. 

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.

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).

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

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.

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 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 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

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%.

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%.

The Nifty hit a new all-time high of 25958.75 points and Sensex hit a new record high of 84988.69.

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 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.

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.

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."

The yield on the 10-year bond opened flat at 6.76%, after it closed at 6.77% on Monday.

Source: Bloomberg

Rupee weakened by 2 paise to open at 83.57 against the US dollar after it closed at 83.55 on Monday.

Source: Bloomberg

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.

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 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.

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 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.

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 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.

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’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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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.

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.

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.

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).

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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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.