Market HIGHLIGHTS: Nifty ends at record closing high, near 16,150; Sensex zooms 872 pts as bulls take charge

BSE Sensex ended at fresh record closing high of 53,823.36, up 872.73 points or 1.65 per cent. Nifty 50 ended 242 points or 1.52 per cent higher at record close of 16,126.65. 

Nifty made a strong bullish bar today. It opened at 15951 and closed with 241 points in positive. Nifty managed to cross all its resistance and close above them at 16126. Volumes on Nifty were higher than average which indicates strength. We can expect nifty to touch 16250 and 16400 in the coming days. On the lower side, 15950 and 15880 will act as strong support. Gaurav Udani, CEO & Founder, ThincRedBlu Securities

Domestic equities extended gains and recorded fresh highs with benchmark Nifty finally breaching 16,000 psychological marks. Notably, a sharp rebound in heavyweight financials supported market’s rally. Additionally, sustained recovery in auto, consumer, and IT aided indices. Barring metal, most key sectoral indices traded in green today, while volatility index surged over 6%. However, midcap and small cap stocks lagged today, and profit booking was seen in number of midcap and smallcap stocks. Hence, today was essentially a day of large cap stocks. Titan, HDFC Ltd, IndusInd Bank and SBI were among top Nifty gainers, while JSW Steel, Grasim, Bajaj Auto and Shree Cement were laggards. Binod Modi, Head Strategy at Reliance Securities

The market witnessed some strong trends and after overcoming the resistance level around the Nifty 50 Index level of 16,000. While sustaining above 16000 is the key factor from a short-term perspective, maintaining above this level is important for market to gain momentum and extend the rally until 16200. The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook. Ashis Biswas, Head of Technical Research at CapitalVia Global Research

Higher education-focussed platform upGrad on Tuesday said it has acquired edtech company KnowledgeHut. While upGrad did not disclose the financial details of the transaction, the announcement comes within weeks of the company earmarking USD 250 million for mergers and acquisitions to drive non-linear growth for the next seven to nine months. With the acquisition of KnowledgeHut, upGrad is venturing into the short duration upskilling and reskilling segment which has a market potential of over USD 58 billion, a statement said.

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BSE Sensex surged to 53,752, a record high, rising 800 points or 1.5 per cent. NSE's Nifty zoomed to 16,100, a fresh peak on Tuesday

The market capitalisation of BSE-listed companies jumped to a record high of Rs 2,38,95,478.59 crore in morning trade on Tuesday, driven by a rally in stocks, where the benchmark index also hit its lifetime peak of 53,402.03. Rallying for the second consecutive day on Tuesday, the 30-share BSE index was trading with a gain of 429.33 points or 0.80 per cent.

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The MPC meets at the cusp of visibly sticky inflation, nudging growth phase and a fluid pandemic situation world over. The central banker is mostly likely to maintain a status quo on rates being mindful of growth and wait for more data points on the inflation front. There could be some steps towards normalisation of liquidity via increased tenor and/or quantum of VRRR (variable-rate reverse repo) – something which bond markets seem to be anticipating. Lakshmi Iyer, CIO (Debt) & Head Products, Kotak Mutual Fund

Markets are buoyant and the large caps have started moving up. The majority of the buoyancy in the last 3 months have been witnessed in small and midcaps that are due for a correction. The Q1Fy22 results have been descent and will keep the market steady. A shift from small cap to large caps seems to be the trade right now. Arun Malhotra, Founder & CIO, CapGrow Capital Advisors LLP

Status Quo – yes. When the Monetary Policy Committee (MPC) meets for the third bi-monthly policy of FY2021-22, I expect the MPC will keep key policy rates unchanged. Ever since COVID-19 hit, the central bank’s message has been clear —the focus is on reviving growth first and foremost. It has maintained a low rates-easy money policy to stimulate consumption, investment and propel economic growth. As it seeks to navigate the economy towards a more sustained pace of growth, the MPC will keep a close watch on key macroeconomic indicators and high-frequency data, in addition to the possibility of a third wave.

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The MPC is likely to reaffirm its growth focus suggesting that ‘a durable increase in aggregate demand is yet to take shape’. RBI governor has already opined that recent elevated inflation readings are a ‘transitory hump’. The committee may draw comfort from the fact that headline CPI inflation is likely to revert back into the MPC’s target band from July onwards. With monsoons picking up pace, the outlook for food inflation also looks promising. A status quo, wait and watch policy yet again may look boring, but it is the need of the hour.

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UnionBank of the Philippines (UBP) has selected Infosys Finacle’s cloud-based digital banking solution suite. Infosys Finacle is part of EdgeVerve Systems, a wholly-owned subsidiary of Bengaluru-headquartered IT services major Infosys Ltd. UBP will migrate from an on-premise deployment to the Finacle Digital Banking Solution Suite on Cloud, an Infosys statement said on Tuesday.

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BSE Sensex surged to 53,478.57, a record high, rising 511 points or 1 per cent. NSE's Nifty zoomed to 16,025, a fresh peak on Tuesday

Considering the FY-21 diluted EPS of Rs.12.25, the company is going to list at a P/E of 77.88 with a market cap of Rs.29,941 mn, while its peers namely Dr Lal Path Labs and Metropolis Healthcare are trading at a P/E of 75.15 and 79.71 respectively. We assign a “Subscribe” rating to this IPO as the company has unique business model with strong revenue visibility and is well positioned to capitalize on healthcare spending across public and private sectors. Also, the issue is reasonably priced as compared to its peers. Marwadi Shares and Finance   

Considering the FY-21 adjusted EPS of Rs.3.40 on post-issue basis, the company is going to list at a P/E of 35.27 with a market cap of Rs.5,369 mn, while its peers namely Kajaria Ceramics, Asian Granito and Somany Ceramics are trading at a P/E of 51.37, 10.55 and 43.15 respectively. We assign a “Subscribe (With Caution)” rating to this IPO as the company has wide product portfolio of tiles with high scope of growth in this segment and is available at a reasonable valuation. However, higher working capital requirement with volatile cashflows keeps us cautious at the same time from a longer-term perspective. Marwadi Shares and Finance

There is a consensus in the markets that MPC will continue with its accommodative monetary policy given the continuing uncertainty on the growth momentum and the threat of another wave of the Covid pandemic. We don’t expect any action on interest rates or any major step towards recalibration of systemic liquidity at this point in time. The combination of elevated commodity prices, Covid related disruptions, vaccination progress, and policy support-led economic revival has resulted in an acceleration in inflation in most countries including India. This has started to lead to expectations of a readjustment in monetary policy. Nevertheless, systemically important central banks, including the RBI, have so far treated the rise in inflation as ‘transitory’, while continuing to focus on supporting growth recovery. Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research

Indian rupee is likely to test 76-76.50 levels as a relatively strong greenback, boiling crude prices and COVID headwinds deepen the depreciation bias for the domestic currency, according to experts. One of the significantly-hit Asian currency in recent months amid uncertain economic times, rupee is expected to see a consolidation in the vicinity of the current level before being pulled towards the depreciation bias. While the equity market has been surging with occasional blips, the rupee has mostly been weak against the US dollar in recent months.

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We have witnessed the breach of 15950 level, sustaining above 15950, we expect the market to gain momentum, leading to an upside projection till 16100-16150 level. Technical indicators also support positivity in the market. Higher earnings being posted by companies in the global market is another factor adding to the positive sentiments in the market. Gaurav Garg, Head of Research, CapitalVia Global Research

Given how tight the range in Nifty has become over the past two months, one should keep a close eye on the price action near the psychological 16000 level. Closing above this level is likely to resume bullishness in the index and propel it towards 16300-16400 in the next few sessions. On the downside, 15770 now becomes the immediate support to watch out for. Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS

For the past two months, Nifty has been consolidating within a very tight range of 15450-15950. The index is now approaching the breakout of this range. Technical indicators on the daily time frame are starting to show bullishness, with the MACD line crossing above its signal line for the first time since mid-June, RSI line starting to re-exhibit bullishness, and Bollinger Bands starting to widen. Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS

After a long consolidation, we have seen further breakouts in today’s trading session and nifty made new highs. If the market breaks 16000 levels on a closing basis, a strong upside move can be seen till 16200-16500 levels. Overall, Nifty 5-months move was approx 500 points, and now there is a possibility of 500 points move in the next 5 days as after a long consolidation we have seen this breakout. Sumeet Bagadia, Executive Director, Choice Broking

CarTrade Tech’s Rs 2,999-crore IPO will open for subscription on 9 August 2021, at a price band of Rs 1,585-1,618 per share of face value of Rs 10 each. The bidding for anchor investors will open on Friday 6 August. The public issue of this online auto classified platform will be entirely an offer for sale (OFS) of 1.85 crore equity shares. As a part of the OFS, CMDB II will offload 22.64 lakh equity shares, Highdell Investment Ltd will sell 84.09 lakh equity shares, Macritchie Investments Pte Ltd will offer 50.76 lakh equity shares and Springfield Venture International will divest 17.65 lakh equity shares.

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Nifty hits 16,000 levels, while BSE Sensex too hit a fresh record high of 53,383 on Tuesday

Cosmetics retailer Nykaa has filed its draft red herring prospectus (DRHP) with capital market regulator SEBI to launch an IPO. The public issue comprises fresh issue of shares worth Rs 525 crore, while the promoters and investors will sell up to 4.31 crore equity shares via offer for sale (OFS). Selling shareholders include promoters Sanjay Nayar Family Trust, and investors such as TPG Growth IV, Lighthouse India Fund III, Lighthouse India III Employee Trust, Yogesh Agencies & Investments Private Limited, JM Financial and Investment Consultancy Services, Sunil Kant Munjal, Harindarpal Singh Banga jointly with Indra Banga and others.

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Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices fell in India on Tuesday, taking cues from the international market as the dollar held steady while investors avoided taking big positions ahead of the key U.S. non-farm payroll data due later this week. On Multi Commodity Exchange, gold October futures slipped Rs 136 or 0.3 per cent to Rs 47,950 per 10 grams. 

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With the vaccination drive steadily picking up and economic activities reviving, whilst prices remaining stable, demand for homes are expected to move upwards. As the latest report from Knight Frank indicates, the sentiments for the next six months are optimistic for sales and majority of our respondents expect a further increase in demand. This prevailing optimism is driving the retail investors to look at realty stocks positively. Shishir Baijal, Chairman & Managing Director, Knight Frank India

India’s manufacturing activities grew at the strongest pace in the last three months suggesting a back on track economy. However, investors choose to await RBI's monetary policy scheduled on August 6 for supporting evidence for the same. So far rupee has been relatively resilient on the back of IPO-related inflows despite lingering Delta variant concerns. But the bottom seems to form near 74.20 levels that the pair have respected in the past few sessions. As long as this support is holding, we can expect the bounce back towards 74.80-90 levels. Overall, the momentum shall remain sideways for the near term. Amit Pabari, managing director, CR Forex Advisors

Barring Nifty Media and Nifty Metal indices, all the sectoral indices were trading in the green. Nifty FMCG jumped 0.6 per cent and Nifty IT index 0.5 per cent

Bajaj-Auto, Tata Steel, HCL Tech, NTPC, ICICI Bank were among the top BSE Sensex losers.

Asian Paints, Housing Development Finance Corporation (HDFC), Titan Company, TCS, Tech Mahindra, IndusInd Bank, Bajaj Finserv were among top Sensex gainers

The 15550 - 15950 Nifty range, which has been holding in July, is likely to be broken in August. Even though FIIs have been pressing sales at the upper end of the band ( FIIs sold stocks worth Rs 1540 yesterday also), the market momentum is not in their favour now. Fundamental support to the bulls has been coming from good corporate results. Now the macros are turning very positive with the declining fiscal deficit, rising tax collections, and now the excellent performance in exports which have shot by 48% in July. The PMI at 55.3 indicates a potential sharp turnaround in economic activity. This can embolden the bulls to take Nifty beyond 15950 early in August unless FIIs turn massive sellers at those levels. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

BSE Sensex jumped 180 points or 0.4 per cent to 53,156, while the Nifty 50 index crossed 15,950 levels

FMCG company Adani Wilmar, which makes edible oil ‘Fortune’, has filed a draft red herring prospectus (DRHP) with market regulator Sebi to launch Rs 4,500-crore IPO. Adani Wilmar, a joint venture between Adani Group and Singapore-based Wilmar, was formed in 1999. It sells cooking oils under the Fortune brand as well as various other food products like rice and sugar. Adani Enterprises in a BSE filing said that the proposed listing of Adani Wilmar Ltd on the stock exchanges will comprise an IPO in the form of fresh issue of new equity shares by AWL for an amount of up to Rs 4,500 crore.

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BSE-listed companies such as Bharti Airtel, Adani Enterprises, Adani Ports and Special Economic Zone, Bajaj Healthcare, Bank of India, Barbeque-Nation Hospitality, CARE Ratings, Dabur India, Dhampur Sugar Mills, Prataap Snacks, ELGI Equipments, Everest Industries, Godrej Properties, IIFL Wealth Management, Inox Leisure, Indian Overseas Bank, Kajaria Ceramics, Kalpataru Power Transmission, Munjal Showa, Neuland Laboratories, NOCIL, Shipping Corporation of India, Simplex Realty, Tata Consumer Products, Transport Corporation of India, and TRF will announce their April-June quarter earnings on August 3.

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Nykaa has filed draft red herring prospectus with capital market regulator SEBI to launch an initial public offering (IPO).

In overnight trade on Wall Street, US stock indices ended slightly lower on concerns about the Delta variant of the coronavirus. The Dow Jones Industrial Average fell 0.28 per cent, the S&P500 index lost 0.18 per cent, while the Nasdaq Composite added 0.06 per cent.

Asian stock markets were trading mostly lower in early trade on Tuesday, ahead of the Reserve Bank of Australia’s latest interest rate decision. Japan’s Nikkei 225 was down nearly one per cent down while the Topix index shed 0.7 per cent. South Korea’s Kospi gained 0.11 per cent. 

The list includes the Rs 4,000-crore IPO by the Bain Capital-backed Emcure Pharma, the Rs 1,500-crore issue by Vijaya Diagnostic Centre, diagnostic firms Krsnaa Diagnostics (Rs 1,200 crore) and Mumbai-based bulk drugs maker Supriya Lifesciences (Rs 1,200 crore), and pharma formulations contract development and manufacturer (CDMO) Windlass Biotech’s Rs 400 crore issue.

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