Closing Bell
India's stock benchmarks declined for the seventh day in a row in a volatile session, dragged by losses in consumer discretionary, power, utilities, banking, auto stocks while healthcare, metal stocks gained.
This is the joint longest losing streak for Sensex and Nifty in 2022 so far, equalling the seven consecutive days of decline that ended on February 24, 2022. The losing run comes after of much anticipated Monetary Policy Committee rate decision by India's central bank.
The Sensex lost nearly 200 points (0.33%) to 56,409.96. The 30-stock gauge rose over 560 points to an intraday high of 57,166.14 in a volatile session.
The Nifty shed 0.24% to 16,818.10, lowest close in two months since June 27, 2022.
Today 25 of Nifty 50 stocks rose, while 25 fell. ONGC, Hindalco, Apollo Hospitals, HDFC Life and ITC were the top Nifty 50 gainers while Asian Paints, Tech Mahindra, Hero MotoCorp, Bajaj Auto, Titan declined the most among index constituents.
The broader indices outperformed their larger peers with MidCap gauge gaining 0.3% and SmallCap measure gaining 0.6%. Ten of the 19 sectoral indices compiled by BSE declined with Power and Utilities measures losing over 1%. On the flipside, healthcare and metal indices added over 1%.
The market breadth was skewed in the favour of bulls. About 1,888 stocks rose, 1,539 fell and 135 remained unchanged.
"Market was extremely volatile on the F&O expiry day, and traders preferred to cut their position in some of the rate-sensitives ahead of the credit policy announcement. The market is already in an oversold position and if the rate hike is above the estimate, then we could see bouts of intra-day volatility with a negative bias for some more time. Technically, despite a solid start, the benchmark Nifty failed to sustain above the 200-day SMA (Simple Moving Average) or 17000 level. In the intraday time frame, the index has formed a double top formation and conversely it is consistently taking support at 16800. As long as the index trades above 16800, the chances of a quick pullback rally is bright. Above the same, the index could retest 16950-17000 levels. However, below 16800, the index could slip till 16700-16650", Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. wrote in a note.
Foreign Investors Net Sellers
Overseas investors remained net sellers for the seventh day in a row, on Thursday.
As per data from the National Stock Exchange, foreign portfolio investors net sold equities worth Rs 3,599.42 crore today; creating a new record of the highest worth of net selling in 14 weeks.
On the contrary, Domestic institutional investors remained net buyers for the eighth straight day and bought equities worth Rs 3,161.73 crore today.
Institutions have net sold Rs 6,023.67 crore worth of equities this month so far and Rs 39,506.75 crore worth of Indian equities till date in 2022.
10-Year Bond Yield Closes Little Changed
Yield on the 10-year bond fell 7bps to 7.27% during the session.
The 10-year bond yield erased all the losses to close at 7.34%
Source: Bloomberg
Rupee Trims Gains Against U.S. Dollar
Indian Rupee appreciated 36 paise to 81.58 during the session before paring most of the gains to close at 81.85 against the greenback.
Source: Bloomberg
Abbott India, Torrent Pharma Gain Most Among Nifty Pharma Stocks
Aarti Industries Falls Most In Over Nine Months
Shares of Aarti Industries fell over 6.7%, most in over nine months since December 20, 2021. Trading volume is 3.6 times the 30-day average. The relative strength index of the stock is 27, suggesting it may be oversold.
Of the 27 analysts tracking the company, 15 maintain 'buy', four suggest 'hold' and eight recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 27.2%.
The sharp decline comes after Morgan Stanley downgrade its recommendation on the stock from 'underweight' to 'overweight', on Wednesday. The target price has been slashed from Rs 957 to Rs 685, an implied downside of 12.31%.
Source: Bloomberg
DLF Reverses Gains In Volatile Session
Shares of DLF rose nearly 2% during the session before reversing gains in a volatile market.
The rise comes after Kotak Institutional Equities reiterated 'buy' and maintained target price of Rs 410 apiece, on Wednesday.
The brokerage said that the company's performance can be characterised by strong pre-sales in residential business of Rs 7,200 crore, aggressive debt reduction at DLF to Rs 2,600 crore. It also added that the performance for this current fiscal FY2023E will likely be contingent on continued launches of new residential projects and improved leasing for commerical projects.
The brokerage firm also said DLF stood to benefit from the sharp uptick in real estate prices in Gurgaon (CAGR of 7% between FY2011 and FY2021) since DLF has a land bank of 150 million square feet in Gurgaon.
"If the city landscape would continue to evolve at the same place, DLF can double its sales in the next five years", according to Kotak Institutional Equities.
Of the 23 analysts tracking the company, 20 maintain 'buy', two suggest 'hold' and one recommends 'sell'. The return potential of the stock is 27.8%.
Source: Kotak Institutional Equities note, Bloomberg
Kotak Securities Launches Kotak Neo App To Elevate User Experience
Kotak Securities announced the launch of Kotak Neo, its latest trading platform ecosystem, on Wednesday.
The Kotak Neo app is aimed at accelerating and elevating user experience for investors.
The app will provide ideas for long-term investments and trading calls for intraday and short-term trades recommended by Kotak's research team.
Source: Kotak Securities Press Release
Chemcon Speciality Chemicals Gains Most In Six Weeks
Shares of Chemcon Speciality Chemicals Ltd rose over 11%, most in over six weeks since August 10. Trading volume is nearly eight times the 30-day average. The rise comes after company commenced Commercial Production of P9 Unit at Manjusar, Gujarat.
The company said in an exchange filing post market hours on Wednesday that it added a capacity of 2,400 MTPA of Bromo Benzene at the P9 facility. The company is further evaluating to add a pharma chemical, Guanine, at the same unit.
The company has also commissioned nearly 2.1 MW solar power plant at Dabhoi, Vadodara with an investment of Rs 10 crores. This solar power plant will be used for captive consumption which will reduce dependency on non-renewable energy, according to an exchange filing.
All three analysts tracking the company maintain 'buy'. The return potential of the stock is 4.2%.
Source: Bloomberg, Exchange Filing
Sun Pharma Advanced Research Gains Most In Three Months
Shares of Sun Pharma Advanced Research Co Ltd. rose nearly 11.5%, most in over three months since June 21.
Trading volume is 16 times the 30-day average.
The rise comes after the company said that it would provide update on clinical programs and Research & Development pipeline in its management presentation on October 13, 2022.
Source: Exchange filing, Bloomberg
European Markets Fall
European markets decline despite Bank of England suspending the start of gilt selling next week to calm slide in markets.
Source: Bloomberg
Apollo Pipes Gains As Systematix Initiates Coverage With 'Buy'
Shares of Apollo Pipes gained 2%, most in a week. The shares saw the bullish breakout pattern golden cross - 50-day moving average crossed above the 200-day moving average.
The rise comes after Systematix Institutional Equities initiated coverage of the stock with a 'buy' recommendation. The brokerage has set a target price of Rs 650, an implied return of 27.25%.
Systematix Institutional Equities noted that the company expanded the fastest among listed peers over FY18-22 at 12% volume and 28% revenue CAGR. It added that the company is likely to continue to lead industry performance due to focus on high margin added building product segment, pan India aspirations, high capacity utilisation.
The healthy outlook on the plastic piping industry augured well for the stock, according to the brokerage.
All five analysts tracking the company maintain 'buy'. The return potential of the stock is 15.5%.
Source: Bloomberg, Exchange filing
10-Year Bond Yield Little Changed
Yield on the 10-year bond fell 7bps to 7.27% during the session.
The 10-year bond yield pared all the gains to 7.33%.
Source: Bloomberg
Rupee Erases Gains To Hover Around Record Low
Indian currency appreciated 36 paise to 81.58, during the session.
The Rupee has erased all the gain to 81.93, just two paise shy of record low of 81.95 that it slid to on Wednesday.
Source: Bloomberg
Midday Market Update: Sensex, Nifty Fall; Asian Paints, Titan, L&T Decline
India's stock benchmarks opened higher but erased all the gains, dragged by consumer discretionary, information technology, banking, capital goods and consumer durables stocks while energy, fmcg, healthcare, metal, oil & gas stocks advanced.
The Sensex shed over 125 points (0.2%) to 56,417.38. The 30-stock gauge added over 560 points (1%) to an intraday high of 57,166.14. The Nifty 50 too declined 0.14% to 16,834.65. Today 26 of Nifty 50 stocks rose while 24 fell. Hindalco, ONGC, Dr. Reddy's, ITC, Apollo Hospitals were the top gainers.
Asian Paints, Titan, Larsen & Toubro, Tech Mahindra and Kotak Mahindra Bank declined the most among Nifty 50 constituents.
The MidCap index almost mirrored its larger peers while SmallCap measure outperformed Sensex and Nifty rising 0.33%. Ten of the 19 sectoral gauges compiled by BSE Ltd. declined.
The market breadth is skewed in the favour of bulls. About 1,869 stocks rose, 1,416 fell and 149 remained unchanged.
Adani Enterprises Secures Rs 10,238 Crore Financing From Lenders For Ganga Expressway Project
Adani Enterprises has secured Rs 10,238 crore from lenders to finance the construction of the Ganga Expressway.
The State Bank of India has underwritten the entire debt requirement.
The project concession period is for 30 years with traffic-linked extension provision of 6 years, including a construction period of three years.
Source: Exchange filing
Adani Group Stocks Gain Ahead Of Inclusion Of Adani Enterprises In Nifty 50
Shares of Adani group advance ahead of the Adani Enterprises' inclusion in he Nifty 50 index on Friday.
The stock will be excluded from Nifty Next 50 index and is expected to attract net inflow of $189 million, according to Edelweiss Securities.
Source: Bloomberg
Hindustan Copper Rises Most In Over A Month
Shares of Hindustan Copper rose over 3.5%, most in over a month since August 26, after company approved 23.2% dividend (Rs 1.16 per share of face of Rs 5 each, for FY 2022
The date of payment of dividend is October 26, 2022, the company said in the exchange filing.
Source: Bloomberg, Exchange Filing
Lupin Falls Most In Nearly Two Weeks
Shares of Lupin fell nearly 3%, most in nearly two weeks since June 19.
Trading volume is almost 2.5 times the 30-ay average.
The fall comes after the company received a warning letted from U.S. FD for its Tarapur facility in Maharashtra.
The U.S. drug regulator inspected the facility between March 22 and April 4, 2022.
Lupin said that it did not believe that the warning letter will have an impact on disruption of supplies or existing revenues from the facility.
Of the 42 analysts tracking the company, 11 maintain 'buy', 17 suggest 'hold' and 14 recommend 'sell'. The return potential of the stock is 1.8%.
Source: Bloomberg, Exchange filing
All Constituents Of Nifty Metal Index Advance
Zomato Gains As Emkay Initiates Coverage with 'Buy'
Shares of Zomato rose nearly 3%. Trading volume is 0.5 times the 30-day average.
The rise comes after Emkay Global initiated coverage on the stock with a 'buy' recommendation. The target price is set at Rs 90, an implied upside of 55.04%.
Emkay said that India's online food delivery market will grow 7x over the next decade, led by rise in per capita income, online penetration, habitual changes and rise in women labour force participation. Zomato's path to profitability and future creation rested on continuation of the duopoly market structure, according to Emkay.
The brokerage firm added that Zomato's high market share in the rapidly expanding Online Food Delivery market is a moat.
Of the 24 analysts tracking the company, 19 maintain 'buy', three suggest 'hold' and two recommend 'sell'. The return potential of the stock is 39.4%.
Source: Bloomberg, Emkay Global note
Blue Dart Express Gains Most In A Week
Shares of Blue Dart Express rose over 3.5%, most in a week. Trading volume is thrice the 30-day average.
The advance comes after the company informed exchanges post market hours Wednesday, general price increase effective from January 1, 2023 The average shipment price increase will be 9.6% compared to 2022.
High inflation, rising interest rates, high input costs have taken a toll on margins. Modest GDP growth, slow pace of recovery owing to global supply chain bottlenecks necessitate a marginal price increase, the company said.
Of the 11 analysts tracking the company, six maintain 'buy', one recommends 'sell' and four suggest 'sell'. The return potential of the stock is -6.8%.
Source: Bloomberg, Exchange filing
Nykaa Jumps Most In Over Three Months
Shares of FSN E-Commerce Ventures (Nykaa) rose over 5.6%, most in over three months since June 23.
The rise comes after the company said it planned to consider issuing free shares on October 3. The stock is the best performer on NSE Nifty Next 50, NSE Nifty 100, S&P BSE 200 indices.
Trading volume is more than nine months the 30-day average. Of the 17 analysts tracking the company, 11 maintain 'buy', four suggest 'hold' and two recommend 'sell'. The return potential of the stock is 20.5%.
Source: Bloomberg, Exchange filing
Tata Motors Jumps Most In Over A Week
Shares of Tata Motors rose over 3.5%, most in over a week since September 20. Trading volume is more than twice the 30-day average.
The rise comes after the company launched the Tiago Electric Vehicle in India on Wednesday. The EV priced under Rs 10 lakh is Tata Motors' third passenger EV in India after Tata Nexon EV and Tata Tigor EV. The pre-bookings will open on October and deliveries will begin in January 2023.
Of the 33 analysts tracking the company, 27 maintain 'buy', three suggest 'hold' and three recommend 'sell'. The return potential of the stock is 29.8%.
Source: Bloomberg
Opening Bell: Sensex Jumps Over 400 Points; 44 Of Nifty 50 Stocks Advance
India's stock benchmarks opened higher, aided by broad based gains across sectors led by commodities, consumer discretionary, energy, industrials, telecom, utilities, auto, banking, capital goods, metal, power and realty stocks.
The Sensex rose nearly 500 points to 57,093.78. The Nifty 50 shed nearly 1% to 17,006.65. Today 44 of Nifty 50 stocks rose while six fell. Hindalco, Tata Motors, Tata Steel, IndusInd Bank, ONGC were the top gainers.
The broader indices outperformed their larger peers with S&P BSE MidCap rising over 1% and S&P BSE SmallCap adding 1.4%. All 19 sectoral measures compiled by BSE Ltd. advanced.
The market breadth is skewed in the favour of bulls. About 2,076 stocks rose, 375 fell and 73 remained unchanged.
10-Year Bond Yield Falls
Yield on the 10-year bond fell 7bps to 7.27% at the open.
Source: Bloomberg
Rupee Rises Against U.S. Dollar
Rupee appreciated 36 paise to 81.58 at the open.
Source: Bloomberg
Global Cues
U.S. Dollar Index at 113.1
U.S. 10-year bond yield at 3.74% on Wednesday
Brent crude down 0.45% to $88.92 per barrel
Nymex crude at $81.75 per barrel
SGX Nifty up 1.1% to 17,075.5 as of 6:23 a.m.
Bitcoin down 0.5% to $19,413.5
Trade Setup For Thursday
Stocks To Watch
Nykaa: The board of India's biggest online cosmetics retailer will meet on Oct. 3 to consider and approve a bonus share issue.
Torrent Pharmaceuticals: The U.S. FDA has issued a Form 483 with three observations to the drugmaker after an inspection of its Indrad, Gujarat-based manufacturing plant.
Chemcon Speciality Chemicals: The company has commenced commercial production at P9 facility in Manjusar near Vadodara.
Shree Cement: CARE Ratings has assigned a ‘CARE AAA; Stable’ rating to the long-term bank facilities of the company.
Supriya Lifescience: A European authority has granted the Mumbai-based drugmaker 'Certification of Suitability' for Diphenhydramine Hydrochloride, an API in antihistamine therapy.
Blue Dart: The logistics firm has increasing its shipping rates by an average of 9.6%. The new tariff will be effective Jan. 1, 2023.
SH Kelkar: Wholly-owned subsidiary Keva Europe BV has acquired 19% equity in Provier Beheer BV, taking its total stake to 81%. The balance will be acquired in a span of two years. Separately, another subsidiary, Creative Flavours & Fragrances, has acquired Nova Fragrance.
Dish TV: The board of the DTH operator has approved transfer of the company's stake in Dish TV Lanka to Union International for 25 million Sri Lankan rupees.
Edelweiss Financial Services: The company has subscribed to the rights issue of subsidiary Edelweiss Tokio Life Insurance, and has been allotted 25 crore equity shares for Rs 250 crore. That increases its stake in the subsidiary to 75.08% from 66% earlier.
Ramco Cements: The company commissioned its fifth integrated cement plant in Andhra Pradesh. The plant has a clinkerisation capacity of 2.25 million tons per annum.
Titan/Kalyan Jewellers: The market share of branded gold jewellery can surpass 40% of the overall market in the next five years, according to a report by the World Gold Council.
BHEL: Gets NTPC order for Odisha thermal power project.
Sensex, Nifty Set To Open Higher
Asian equities jumped tracking the strongest day for U.S. stocks since early August after the Bank of England unveiled a bond-buying programme that triggered a global rally in government debt.
Equities rose in Japan, Hong Kong, and Australia, mirroring a 2% advance for the S&P 500, which snapped a six-day losing streak. At 7:15 a.m., the Singapore-traded SGX Nifty — an early barometer of India's benchmark Nifty 50 — gained 0.95% to 17,050.
The rally in riskier assets was triggered by the BoE’s plan to purchase up to £65 billion ($71 billion) in U.K. government debt over the next two weeks. The move averted a crisis for retirement funds and lifted risk sentiment in Asia’s markets on Thursday.
The BoE’s bond buying buoyed the pound, which recently fell to its lowest since 1985. It was weakening again during Thursday morning's Asian trading as the dollar rose slightly against its G-10 counterparts.
The Indian rupee, which fell to its lowest on record on Wednesday, is likely to open higher against the greenback today.
A dollar index rose 0.4%, Bitcoin traded flat at $19,554, and gold was at $1,654.83 an ounce.
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