Stock Market Today: Nifty, Sensex End At Record Highs As Private Bank Stocks Lead

The NSE Nifty 50 and BSE Sensex ended Thursday with fresh closing highs as risk appetite increased among traders as the US Federal Open Market Committee guided for more rate cuts after reducing the key rate for first time in over four years.

HDFC Bank Ltd., and Kotak Mahindra Bank Ltd. contributed the most to the gains of the NSE Nifty 50.

The Nifty 50 ended 38.25 points or 0.15% higher at 25,415.80, and the Sensex settled 236.57 points or 0.29% higher at 83,184.80.

The US rate-setting panel cut the benchmark federal fund rate by 50 basis points to 4.75–5.00% in line with market expectations, which helped the benchmarks post fresh highs at open. The Nifty 50 rose 0.92% to a fresh high of 25,611.95, and the Sensex rose 1.00% to a fresh high of 83,773.61.

Cheering a 50-bps rate cut by the FOMC, the Indian equities commenced the weekly expiry day on a strong note at a fresh high of 25,500. But, once again the broader markets dented the market sentiments and a steep fall in the Mid and Smallcap stocks dragged the index lower; which however, managed to hold its gains to end the session at 25,415.80 with gains of 38.25 points, said Aditya Gaggar, director, Progressive Shares.

The Index has formed a Shooting Star candlestick pattern at record levels with a probable bearish divergence in the RSI. The consolidation range of the Index is 25,300-25,500 and a convincing move on either side will decide the trend, Gaggar said.

HDFC Bank Ltd., Kotak Mahindra Bank Ltd., NTPC Ltd. Bharti Airtel Ltd., and Reliance Industries Ltd. added to the benchmark NSE Nifty 50 index.

Larsen & Toubro Ltd., Tata Consultancy Services Ltd., Bharat Petroleum Corp, Coal India Ltd., and HCL Technologies Ltd. weighed on the index.

On NSE, seven sectors declined, five sectors advanced out of 12. The NSE Nifty Media declined the most, while the NSE Nifty FMCG rose the most.

Among the sectors, FMCG was the top gainer followed by the Nifty Bank and Realty while Media and PSU Banks corrected the most. Mid and Smallcaps corrected to the extent of 0.67% & 1.26% and underperformed the Nifty 50, Gaggar said.

Broader indices underperformed. BSE Midcap closed 0.53% lower and BSE Smallcap was 1.06% lower at close.

Of the 20 sectors on the BSE, 11 fell and nine ended higher. BSE Oil & Gas fell the most

Market breadth was skewed in the favour of sellers. Around 2,722 stocks fell, 1,255 rose, and 98 remained unchanged on the BSE.

Rupee strengthened by 7 paise to close 83.69 against the US dollar. It closed at 83.76 on Wednesday, according to date on Bloomberg.

• The NSE Nifty 50 and BSE Sensex settled at highest closing level as risk appetite improved after the US Federal Reserve reduced the key rate and guided for more.

• The Nifty rose 0.92% to a fresh high of 25,611.95. The Sensex rose 1.00% to a fresh high of 83,773.61.

• The NSE Nifty Financial Services rose 1.06% to a record high of 25,584.45 during the session HDFC Bank Ltd., Kotak Mahindra Bank Ltd. were top gainers in the index.

• The NSE Nifty Bank increased 1.14% intraday to one-month high of 53,353.30. The index ended 0.54% higher at 53,037.60.

• Stocks of telecommunication slumped after the Supreme Court rejected their pleas to re-compute average gross revenue calculations. Vodafone Idea Ltd. was the worst hit compared to other stocks.

• The NSE Nifty Midcap 150 ended 0.52% lower at 21,965.15.

• The NSE Nifty Smallcap 250 ended 0.96% lower at 18,298.70.

Siemens Ltd. got No Objection Certificate from National Stock Exchange Ltd. to demerge its energy business to Siemens Energy India, it said in an exchange filing.

Europe share indices rose Thursday as risk appetite fuelled among investors after the Federal Reserve's dovish guidance assured that the world's largest economy may be able to avoid recession.

Indian benchmark indices pared gains after hitting fresh highs for the second consecutive session, tracking global peers after the US Federal Reserve slashed key interest rates by 50 basis points.

Moreover, the Fed Chair, Jerome Powell, also indicated that a further 50 basis points cut might be in the offering this year.

On Dalal Street, financials and consumer stocks led the day's gains on positive sentiments after the Fed rate cut came at the higher end of market expectations.

BGR Energy Systems Ltd. received demand order from GST Department to Rs 18.9 crore from Rs 487.5 crore, it said in an exchange filing.

Firstsource Solutions started operations in Australia and New Zealan, it said in an exchange filing.

The India's Volatility Index declined 9.52% to 12.10. The index was trading 6.51% down at 12.50 as of 12:54 p.m.

Paradeep Phosphates Ltd.'s ammonia and urea plants in Goa Have resumed operations, it said in an exchange filing.

Power Mech Projects Ltd. received an order worth Rs 865 crore from Talwandi Sabo Power. Talwandi Sabo Power is a subsidiary of Vedanta, the company said in an exchange filing Thursday.

Gujarat Mineral Development Corp is to explore India’s Rare Earth Supply Chain Development with Ambadongar Project in Gujarat, it said in an exchange filing.

The company will invest Rs 2,200 crore Ambadongar Rare Earth Mining Project.GMDC will also invest additional 1,300 crore on the Project

Bharti Airtel Ltd.'s B2B arm Airtel Business partnered with Cisco to launch Airtel SD-Branch for network solutions. The SD stands for Software Defined, the company said in an exchange filing Thursday.

Slower capex deployment by Vodafone Idea Ltd. is to widen market share gains for Jio. Bharti Airtel Ltd. is likely to see mixed impact. Bharti Airtel to depend on company's roll out program.

IIFL Securities remains positive on Bharti Airtel, stance on Vodafone to be analysed now, Institutional Equities Vice President Balaji Subramanian.

Shares of Vodafone Idea Ltd. hit 15% lower circuit and fell to Rs 10.96, the lowest level since Oct 30, 2023. It remained locked in the lower circuit as of 12:03 p.m., compared to 0.20% advance in the NSE Nifty 50 index.

The stock earlier hit a 10% lower circuit after the Supreme Court rejected tele communications companies' plea to re-compute average gross revenue calculations.

What are AGR dues?

These are the spectrum usage fee to be paid to the government and government calculates this as a percentage of total revenue. Telcos believes only telecom revenue should be considered and non telecom revenue should be excluded for calculation.

Current dues:

1. Vodafone Idea: Rs 70,300

2. Airtel: Rs 44000

3. Reliance Jio: No significant dues

Cash on Balance Sheet:

• Vodafone Idea: RS 535 CRORE

• Airtel: Rs 16340

Other updates:

Citi had upgraded Vodafone Idea with target of Rs 23 on back of possibility of favourable outcome from AGR dues case

"Supreme court verdict a key setback for Vodafone's revival process," according to IIFL Securities' Balaji Subramanian. He added that on a fair value basis, he sees setback of Rs 5 per share. "Vodafone was going to get a significant relief in annual payments from a positive verdict," he said.

Future fund raise process is expected to get prolonged for Vodafone Idea and if Vodafone is able to manage to tie in debt funding, company could continue revival process, he said.

He also believes that latest verdict is a negative for Indus Tower and estimates that Vodafone currently owes Indus Towers Rs 4500-5000 crores. This is a bigger challenge for Indus Tower as Vodafone's payment to co is due in one year, he said.

Former COO Of Airtel Ajai Puri told NDTV Profit that the telecom Industry was expecting a relief. He added that it is an unfortunate situation, but one needs to respect the verdict. "We should not let Voda-Idea bundle up under the pressure," he said.

He has urged the government to work on telecom reforms, and provide relief to Indian telecom industry. "The third player- Vodafone Idea is really struggling, Govt should offer relief," he said adding that the government should help maintain the 3 player telecom industry.

The Supreme Court rejected telecom companies' plea through which they were seeking a re-computation of their adjusted gross revenues. Vodafone Idea Ltd., Bharti Airtel Ltd., and other companies had filed curative pleas against the 2019 top court verdict in the case.

The telecom companies alleged that there is a grave error in the calculation of average gross revenue dues by the Department of Telecommunications, coupled with an arbitrary penalty imposed on them by the top court.

360 One Wam Ltd.'s board approved to raise funds up to Rs 2,250 croe viaa qualified institutional placement. The board auhtorised the Relationship Committee to set price, timing, and conditions of the QIP, it said in the exchange filing.

Shilpa Medicare Ltd. announced an appointment of Sridevi Khambhampaty as chief executive officer of wholly-wwned arm Shilpa Biologicals Ltd, it said in an exchange filing Thursday.

The yield on the 10-year bond declined 4 basis points to 6.74%. It closed at 6.78% on Wednesday, according to data on Bloomberg.

Britannia Industries Ltd. rose as much as 1.66% to Rs 6,224.30 as of 11:08 a.m., as compared to 0.52% advance in the NSE Nifty 50 index. The stock was trading 1.59% higher at Rs 6,220.50 as of 11:09 a.m., as compared to 0.50% advance in the NSE Nifty index.

Shares of Nazara Technologies Ltd. jumped to their highest level on Thursday, after the company announced the approval of a preferential equity issue to raise Rs 900 crore. The company has also increased stake in SportsKeeda parent Absolute Sports, to 91%.

Iris Business Services Ltd. signed a memorandum of understanding with the Telangana Government to support growth of MSEME ecosystem in the state, it said in the exchange filing on Thursday.

In this public and private collaboration Iris Business Services will invest to create and deliver technology driven solutions. The cost the company will recover by levying user charges.

• IIFL Finance Ltd. is facing downgrade risk on gold loan ban. The local agency plans to cut IIFL Credit Rating From 'AA' To 'AA-'. IIFL Finance may cut more than 9,000 employees if ban persists.

Source: Bloomberg

Shares of Brainbees Solutions Ltd., the owner of FirstCry.com, jumped to a one-month high, after Morgan Stanley initiated coverage on the stock with an 'overweight' rating and a target price implying a 28% upside.

NTPC Ltd. hit an all time high after NTPC Green Energy Ltd., an arm of the state-run company, filed the draft red herring prospectus for an initial public offering to raise Rs 10,000 crore on Wednesday.

Exide Industries Ltd. is grappling with a slowdown in automotive original equipment manufacturer volumes, which has raised concerns about revenue growth for the near term, hold Citi analysts.

The NSE Nifty IT rose as much as 1.81% higher at 42,850.45, as Infosys Ltd. and Tata Consultancy Services Ltd. lead. The index was the top loser among other sectoral indices on Wednesday with over 3% decline.

The NSE Nifty 50 and Sensex rose to fresh highs at open on positive sentiments as the US Federal Reserve indicated more rate cuts after reducing the benchmark federal fund rate by 50 basis points on late Wednesday.

HDFC Bank Ltd., and Infosys Ltd. contributed the most to the Nifty at open.

As of 09:20 a.m., the Nifty 50 was 80.45 points or 0.71% higher at 25,558.00, and the Sensex was 688.55 points or 0.83% higher at 83,636.77.

The US Federal Open Market Committee cut federal fund target range by 50 basis points to 4.75–5.00%. The members the committee voted in 11–1 majority. The median projection showed possibility of further 50-basis-point rate cut by the end of 2024.

Based on the technical pattern of the market, Kotak Securities sees buying support between 25,300 and 25,200 levels, said Shrikant Chouhan, head equity research. On the higher side, 25,450-25,500 and 25,550 levels will be crucial hurdles, however, a close above 25,550 would bring positive surprises in the market. Until the market crosses 25,550 it is advisable to reduce long positions between 25,450 and 25,550 levels. 

HDFC Bank Ltd., Infosys Ltd., Tata Consultancy Services Ltd., NTPC Ltd., and Reliance Industries Ltd. added to the benchmark index.

Oil and Natural Gas Corp, Bharat Petroleum Corp Ltd., and Larsen & Toubro Ltd. weighed on the index.

Broader markets were trading with less gains compared to the benchmark indices. The BSE Midcap and Smallcap indices were trading 0.67% and 0.45% higher respectively.

On BSE, 19 sectors advanced out of 20, and one declined. The BSE IT rose the most, while the BSE Oil & Gas was the only sector to decline.

Market breadth was skewed in favour of buyers. Around 2,089 stocks rose, 849 stocks declined, and 132 stocks remained unchanged on BSE.

At pre-open, the NSE Nifty 50 was 0.43% or 109.50 points higher at 25,487.05, and the BSE Sensex was 0.50% or 410.94 points higher at 83,359.17.

• The yield on the 10-year bond opened flat at 6.79%.

• It closed at 6.78% on Wednesday.

Source: Bloomberg

• Rupee strengthened by 7 paise to open at 83.69 against the US dollar.

• It closed at 83.76 on Wednesday.

Source: Bloomberg

Western Carriers (India)'s public issue was subscribed to 13.89 times on final day. The bids were led by retail investors (18.61 times), non-institutional investors (20.93 times) and qualified institutional investors (0.14 times).

Arkade Developers Ltd.'s public issue was subscribed to 29.44 times on the final day. The bids were led by non-institutional investors (58. 83 times), retail investors (33.28 times), reserved for employees (31.47 times), and qualified institutional investors (0.61 times).

Northern Arc Capital Ltd.'s public issue was subscribed to 20.18 times on the final day. The bids were led by non-institutional investors (50.8 times), retail investors (18.97 times), reserved for employees (4.32 times), and qualified institutional investors (0.31 times).

Nazara Technologies raised up to Rs 900 crore via preferential issue of shares at an issue price set at Rs 954.27 per share and to acquire 19.35% stake in subsidiary Absolute Sport (Sportskeeda) for Rs 145 crore. With this, the company now holds a 91% ownership stake in Absolute Sports (Sportskeeda). Power Grid Corp was declared a successful bidder for the Rajasthan-Madhya Pradesh transmission project.

B.L. Kashyap And Sons Ltd. a new order worth Rs 221 crore from SSS Realty & Co. for construction work in Bangalore. The total order book as of date stands at Rs 3,546 crores. Macrotech Developers Ltd. The company to acquire Ivanhoe's stake in digital infrastructure platform entities in Maharashtra for Rs 240 crore. For more click here.

The dollar index, which measures the greenback's might against major six currencies across the world, hit a fresh one-year low of 100.22 on late Wednesday following the first rate cut by the US Federal Reserve in over four years.

The dollar index was trading 0.58% higher at 101.18 as of 08:15 a.m., compared to Wednesday's close of 100.60. 

The yield on the benchmark US 10-year Treasury note rose to 3.72% as of 08:44 a.m. It settled at 3.65% on Wednesday.

Crude oil prices rose as following the rate cut in the US on hopes of demand recovery and as geopolitical tension rose in the Middle-East. The crude oil price declined 0.20% to $73.50 a barrel as of 08:49 a.m.

Most share indices in the Asia-Pacific region rose on Thursday as the risk appetite among traders fuelled after the US Federal Reserved delivered a half-a-percentage point rate cut and projected for more. 

The Nikkei 225 rose nearly 3% after the Japanese yen declined against the US dollar as the Bank of Japan commenced its two-day policy meeting. The index was trading 997.52 points or  2.74% higher at 37,377.69 as of 08:03 a.m. 

The S&P ASX 200 was trading 23.60 points or 0.29% higher at 8,165.70 as of 08:04 a.m. The KOSPI index was 15.05 points or 0.58% down at 2,560.36 as of 08:04 a.m. 

The US Federal Open Market Committee brought down the federal fund target range to 4.75–5.00% from two-decade high of 5.00–5.25%. The median projection showed that the rate-setting panel may go for another 50 bps-point rate cut by the end of 2024. 

The GIFT Nifty was trading above 25,400 in early trade on Thursday. Market participants may focus on share prices of Nazara Technologies Ltd., Macrotech Developers Ltd., and Aditya Birla Capital Ltd. Nazara Technologies Ltd. raised funds by issuing preferential shares, while Macrotech Developers will acquire additional stakes in a Maharashtra-based digital infrastructure firm.

The GIFT Nifty was trading 0.22%, or 57 points higher at 25,412.00 as of 06:31 a.m.

The overnight development in the US Federal Reserve policy meet outcome is expected to have a substantial impact on global markets and is likely to set the intermediate trend for the NSE Nifty 50 and BSE Sensex, said Osho Krishan, a senior analyst, technical and derivatives, Angel One Ltd.

"On the level-specific front, 25,300-25,200 is anticipated to cushion any upcoming blips, while the sacrosanct support is placed at the pivotal zone of 25,000. On the higher end, 25,450-25,500 is expected to provide some resilience in the short run, followed by 25,600," Krishnan said.

The NSE Nifty 50 and BSE Sensex reversed a two-day winning streak on Wednesday, after hitting fresh high during the session. Both the benchmarks ended 0.16% lower each, while the volatility increased before the US Federal Open Market Committee cut rates by 50 basis points to 4.75–5.00% on late Wednesday.

The US rate-setting panel cut its benchmark rates for the first time since March 2020. It's also the first rate cut since it started its aggressive rate-hike campaign in March 2022 when US inflation rose to a 14-year high.