Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 crashed nearly 3 per cent on the expiry day of September derivative series. BSE Sensex crashed 1,115 points or 2.96 per cent at 36,553.60, while the broader Nifty 50 index ended just above 10,800, down 326 points or 2.93 per cent. Barring HUL, all the Sensex constituents ended deep in red today. Financials bled the most in today’s trade such as IndusInd Bank, Bajaj Finance and ICICI Bank. IndusInd Bank shares plunged 7.10 per cent to Rs 490.20 apiece, while Bajaj Finance lost 6.63 per cent, and ICICI Bank shares fell 4.52 per cent. On the flip side, Hindustan Unilever share price ended 0.36 per cent up, the only Sensex gainer today. The volatility index, India VIX, shot up 12.32 per cent to 23.53 levels. Nifty IT and Nifty Metal indices were top sectoral losers, down 4.20 per cent and 4.24 per cent, respectively. Nifty Bank fell 3.4 per cent, Nifty Auto 3.54 per cent and Nifty FMCG index lost 0.95 per cent.
Highlights
Indian benchmark indices had a gap down opening and kept losing ground as the day wore on, to finally end the day around 2.8% down. Markets tracked weak global cues as the uncertainty witnessed in the last few days gave way to negativity, with broader markets also underperforming. The uncertainty regarding an economic recovery, the unabated rise in virus infections, and today being derivatives expiry day, all contributed to the negativity. With volatility expected to be high, traders are advised to remain cautious: Vinod Nair, Head of Research at Geojit Financial Services
Indian market started the day with a Bear attack and continue to see supply throughout the day. The Bulls must have on holiday or shifted their stand in Bear camp. The worldwide concerns over the COVID-19, September expiry rollovers and growth worries kept the domestic market under pressure. Nifty has a broken psychological level of 11000 and rushed towards 200 EMA(10844). Finally, it has settled down just above 11800. Market breadth remained in favor of bear. For every gainer, there were three losers. India Vix gained by 12.32% closed below 23.58. Going forward, major support will be seen around 10610 and Resistance will be 11200: Vishal Wagh, Head of Research, Bonanza Portfolio Ltd
Weak global cues coupled with worrying data points from the US-led to a gap-down start today even as the re-emergence of the virus rattled the Euro Zone. Indices here saw deep cuts led by TCS & Infosys as both along with RIL were the ones which led the recovery in the last five months. The broader markets were pounded today much beyond the 3% cut witnessed in the Indices: S Ranganathan, Head of Research at LKP Securities
BSE Sensex crashed 1,115 points or 2.96 per cent at 36,553.60, while the broader Nifty 50 index ended just above 10,800, down 326 points or 2.93 per cent.
"Markets have achieved the support of 10,800 in a very short span of time, which was derived from the 200-day moving average. From closing levels of today markets could be headed towards a further correction, the momentum that is there today clearly indicates that market is sinking beyond 200-day moving average and it may breach that level soon. Whatever rise we have seen from March bottoms, till now could be trimmed down to 10,158 levels," said Vinay Rajani, Technical Research Analyst, HDFC Securities.
Following the stake sale in Jio Platforms, Mukesh Ambani’s RIL has shifted its focus to Reliance Retail. Sanford C Bernstein has maintained an outperform rating on Reliance Industries Ltd shares and raised its target price to Rs 2,470, translating to over 12 per cent upside from current levels. The research and brokerage firm expects a break-up of the company in the next 3-4 years through an initial public offering (IPO) of the Jio and Retail business segments, which it believes should unlock additional shareholder value.
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The support level of 10900-10950 has been disrespected during today's trading session. We have also pierced of 10882 which was made on 3rd August 2020. This opens a new target of 10750. Any bounce can be utilised to short the Nifty for this target: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Index heavyweights such as Infosys, TCS, Reliance Industries, ICICI Bank and HDFC Bank have contributed the most to the indices' loss today. Sensex has breached 36,600 level.
Nifty IT index was top sectoral loser at this hour, down 4.02 per cent, erasing all its recent gains. Mphasis, TCS, Tech Mahindra, Infosys, Wipro were down in the range of 3.5-7 per cent.
HUL share price gained over 1 per cent to trade at Rs 2,072.85 apiece on BSE. It was the only Sensex gainer in the trade today. So far, the stock hit a day's high of Rs 1116.50.
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TCS share price extended losses, falling over 6 per cent to Rs 2,315.40 apiece. M&M, Bajaj Finance, IndusInd Bank, Tech Mahindra, Tata Steel were among other losers on the Sensex.
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BSE Sensex crashed 1,000 points or 2.65 per cent to 36,660.80, while the Nifty 50 index breached the 10,850 level on the downside.
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The Indian rupee ended at 73.90 per US dollar on Thursday as compared to a Wednesday's close of 73.57 per US Dollar.
Angel Broking's IPO on Day 3 so far has been subscribed 1.84 times. Retail portion has been subscribed 3.51 times while HNIs have their quota subscribed 0.37 times.
Drug firm Zydus Cadila on Thursday said it has received tentative approval from the US health regulator to market anti-cancer drug Palbociclib Capsules. Zydus Cadila has received tentative approval from the US Food and Drug Administration (USFDA) to market Palbociclib Capsules in the strengths of 75 mg, 100 mg, and 125 mg, Zydus Cadila, part of the Cadila Healthcare group, said in a regulatory filing.
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Hexaware Technologies had announced yesterday that Baring Private Equity Asia (“BPEA”) through its affiliated entities HT Global Holdings B.V. (“the Acquirer”) and HT Global IT Solutions Holdings Limited will take Hexaware Technologies Limited private through an ongoing delisting process. Post the open offer Barings will increase its stake in Hexaware by an additional ~29% to ~91% of total outstanding shares. Barings has accepted the delisting price of Rs. 475 per share which is at a significant premium to the floor price of Rs. 265 per share announced by the company earlier. At the discovered price of Rs. 475 the stock will be trading at P/E of 22xCY2019 reported EPS of Rs. 21.52 which would be in line with other mid-cap peers. We believe Baring’s decision to take the company private reflects the strong growth potential for companies in the IT sector and reinforces our positive stance on the sector: Jyoti Roy, DVP- Equity Strategist, Angel Broking Ltd
Zydus Cadila has received tentative approval from the USFDA to market Palbociclib Capsules, (US RLD: Ibrance Capsules) in the strengths of 75 mg, 100 mg, and 125 mg. Palbociclib is an anti-cancer medicine that interferes with the growth and spread of cancer cells in the body. It is used in adults to treat hormone receptor (HR)-positive, human epidermal growth factor receptor 2 (HER2)-negative breast cancer that has spread to other parts of the body (metastatic) in combination with an aromatase inhibitor as the first hormonal based therapy in postmenopausal women or in men, or fulvestrant with disease progression following hormonal therapy. The drug will be manufactured at the manufacturing facility at the SEZ, Ahmedabad. This is a positive development for Zydus Cadila: Yash Gupta, Equity Research Associate, Angel Broking Ltd
It is possible that we may see more correction. Scotland and the UK have said they are contemplating a lockdown. Fears that more economies may close down is creating more nervousness in the market. The revelations on global bank’s transactions also weighed heavily. All this is collective bothering the market, which is at is on the lookout for reasons to correct. The market had already raced ahead of its valuations. If we see markets weakening further, it could add more jitters. I see strong support at 10,800 if the market were to weaken from here. Cyclicals will be hammered further. People have stocked up on defensive stocks, and that pack which has stayed resilient may also feel the heat. Stability in the global markets could be the only saviour right now: Abhimanyu Sofat, Head of Research, IIFL Securities
On the back of subdued global cues, Indian share markets plunged to nearly two and a half month low on Thursday, on the expiry day of September derivative series. BSE Sensex breached the crucial 37,000 on downside and slipped to a level which was last seen on July 17 this year. Similarly, in line with SGX Nifty, the broader Nifty 50 index tumbled 216 points and gave up the crucial 10,950. Indian share markets have been mirroring the global markets, wherein the overnight trade on Wall Street, major US indices plunged up to 3 per cent.
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After a 10% correction, BRIT offers an attractive entry opportunity, given strong growth and earnings outlook vs. peers. Channel checks point to strong growth momentum - ahead of peers - driven by increased at-home consumption and share gains. Beirannia continues to be our preferred pick benefiting from tailwinds and strong execution. Valuations at 40x FY22E EPS appear attractive given 20% earnings CAGR over FY20-23E. Reiterate Buy with a TP of Rs4,500.
~ Emkay global
Tata Consultancy Services (TCS) shares added to their losses, falling over 5% on Thursday to trade at Rs 2,330 per share. The stock has slipped over 7% since Tuesday.
UTI Asset Management Company, one of India's oldest AMC, is set to launch its initial public offering (IPO) next week at a price band of Rs 552-554 per share. The issue will be available for subscription from September 29 and will remain open till October 1. At the upper price band, this will translate to an issue size of Rs 2,160 crore. The IPO market has so far witnessed five public issues, all of which have been oversubscribed by all categories of investors. The listing of two of these -- Happiest Minds and Route Mobile -- have also been massive with stocks surging over 100% on listing.
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While energy demand continued to remain lower than last year’s figures in August as well, the power sector has been showing signs of recovery as economic activities begin to resume in the country after months of staying in lockdown starting March. The contraction in power narrowed down further in August to 2% as compared to 4.1% in July and 10.9% in June, a report said on Wednesday.
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Sensex extended losses, was trading 734 points or 1.95 per cent down at 36,934.30, while the Nifty 50 was ruling at 10,922, down 209 points or 1.88 per cent.
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After witnessing sharp weakness on Monday and Tuesday, Nifty continued to show follow-through weakness on Wednesday and closed the day lower by 21 points. A small negative candle was formed with minor lower shadow. The market action of Wednesday indicate volatility and emergence of minor buying interest from the lower levels.
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The Rs 600-crore Angel Broking IPO has been subscribed 1.69 times so far on the final day of the bidding process. Retail investors put in bids 3.22 times while NIIs subscribed their portion 36 per cent.
Indian market is the liquidity-driven market. In fact post COVID-19 fundamentals have deteriorated and still market continued to rally on the back of liquidity push in the market. Now, with FED meeting outcome one thing is clear that there will be lesser growth in the next couple year. Indian markets are the costliest market as far as price to equity is a concern. Concern over the second wave of the pandemic is doing round of the market. So, correction is on expected line. Technically speaking, Nifty has created lower high lower low chart formation and all major moving averages are broken. Closing below 11000 levels for a couple of days will bring further panic in the market which may lead Nifty towards 10600-10660 levels: Vishal Wagh, Head of Research, Bonanza Portfolio Ltd
If we look at a slightly longer time-frame chart, the zone of 11068-10938 is the very crucial support zone for NIFTY. These levels are 100-Week MA and 50-Week MA respectively. We just tested the 50-Week MA today. I expect the markets to give some mild technical pullback from these levels because of two reasons. One, there is a near-vertical fall of nearly 400-500-odd points over previous sessions; and two, this support zone which exists on the weekly charts should not be taken out without any mild support even once. If the technical pullback occurs on the expected lines, NIFTY may test 11070 and 11100 levels. If the 50-Week MA is taken out, it might re-open some lower supports that come in at 10800 and 10710: Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research & Advisory Services
Extending the losses to the fourth consecutive day, gold prices in India continued their downward movement on Thursday, mirroring the global prices. In the international market, gold prices have fallen to a more than two-month low as investors await a further response from major central banks as economic uncertainty looms. On MCX, gold October futures were trading Rs 175 or 0.35 per cent lower at Rs 49,333 per 10 gram, while the silver December futures lost Rs 1,806 or 3.09 per cent to rule at Rs 56,682 per kg.
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Angel Broking’s IPO has seen positive response so far from investors despite the bearish equity market sentiment that has taken broader markets down. With subscription reaching 161% so far on the last day of bidding for the issue, retail investors have already oversubscribed their portion of the Rs 600 crore issue. Angel Broking’s Managing Director Dinesh Thakkar and it’s CEO Vinay Agarwal, in an interview with Kshitij Bhargava of Financial Express Online, shed light on how they expect their average daily turnover to grow in the future, discuss SEBI’s new margin trading rules and talk about the next big thing that the tech-savvy broking house could offer to its customers.
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COMEX gold hit an intraday low of $1855.1/oz today, the lowest level since July 21, but has recovered to trade little changed near $1860/oz. Gold has been under pressure this week as US dollar is being seen as the preferred safe haven asset amid renewed risk aversion in global financial markets. Gold has penetrated the key $1900/oz level and may remain under pressure unless we see a substantial correction in US dollar: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Investors now await US weekly jobless claims data, if it is recorded higher than expectations it could support precious metal prices on lower levels. SPDR holdings, fell 0.87% to 1,267.14 tonnes on Wednesday. The broader trend on COMEX could be in the range of $1825-1890 and on domestic front prices could hover in the range of Rs49,000-49,880: Navneet Damani, VP, Motilal Oswal
With the coronavirus taking a toll on the already stressed lenders, rating agency S&P Global has said that India’s banking sector could be among the last to recover post the pandemic. In a recent report, S&P Global said that it anticipates difficulty in restoring financial strength ratings of financial institutions to pre-crisis levels. “We don't expect the world's largest banking sectors, including more than half of G20's, to recover to pre-COVID-19 levels until 2023, or beyond,” it said. India will be joined by Mexico and South Africa among the banking systems to be the slowest to recover to 2019 levels.
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Following weak global cues, BSE Sensex and Nifty 50 were trading lower for the sixth consecutive session on Thursday. The 30-share Sensex plunged 445 points or 1.19 per cent to 37,222, while the broader Nifty 50 index gave up the crucial 11,000 mark. Index heavyweights such as Infosys, Reliance, TCS, ICICI Bank and HDFC Bank contributed the most to the indices’ loss today.
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Small businesses in India, already struggling amid the pandemic, are now having to repay mounting debt after a loan holiday ended last month. The Reserve Bank of India gave borrowers a six-month freeze on their loan repayments, which ended on Aug. 31, with about a third of India’s $1.8 trillion outstanding loans being deferred under the program.
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So far, when the other peers depreciated significantly, rupee showed resilience as it was supported by the inflows pertaining to IPO’s that flowed until yesterday. If the inflows halt, the price action of rupee suggests the pair is tilted towards weakness in the immediate future given by negative sentiments across the globe. If the correction goes in line with peers, it can take the pair close to 74.20-74.50 levels with a possibility of 60%-70%: Amit Pabari, managing director, CR Forex Advisors
Big changes are afoot in Indian agriculture, driven by Prime Minister Narendra Modi at considerable political risk. Freeing up farming markets may be as significant as dismantling industrial licenses in 1991.
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Route Mobile share price jumped over 5 per cent to trade at Rs 875 apiece on BSE in an otherwise weak market. Route Mobile shares were listed on Monday.
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Fed member Evans' comments that the Fed could hike rates before the inflation averages 2% has changed the investors' interpretation of Fed policy. The policy remaining accommodative until inflation averages 2% means the overnight rates would stay below the neutral rate till inflation averages 2%. Fed chair Powell in his testimony has highlighted the importance of more action on fiscal front to keep the economic recovery underway. Rupee too is likely to open weak around 73.75 and trade 73.60-74.00 range. Inflows on account of foreign private equity firms' investments in Reliance Retail could cap up side. The Nifty could test the psychological 11000 mark in trade today: Abhishek Goenka, Founder and CEO, IFA Global
Reliance Industries share price fell 1.06 per cent to Rs 2,206 apiece on BSE in Thursday's weak session. So far in the trade, the stock hit the day's low of Rs 2,190.35 apiece.
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