Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 crashed nearly 2 per cent on Friday, on the back of sell-off in index heavyweights and weak global cues. BSE Sensex tanked 1.8 per cent or 1,093 to 58,841, while NSE Nifty 50 tanked 346 points or 2 per cent to finish trade at 17530. Index heavyweights such as Reliance Industries, Tech Mahindra, UltraTech Cement, Infosys, M&M, Nestle India, Tata Consultancy Services (TCS), Dr Reddy’s, Asian Paints were among top index draggers. On the flip side, IndusInd Bank, and Axis bank were the only gainers. Bank Nifty index fell 1% to end at 40,777
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BSE Sensex tanked 1.8 per cent or 1,093 to 58,841, while NSE Nifty 50 tanked 346 points or 2 per cent to finish trade at 17530
Going forward, D-street will focus on the macro trends. The FIIs have been on a buying spree and have bought over Rs 12764 crore of equity so far in September. The continuous FII buying has been a major contributor to the current rally. The market will have its keen eye on this trend as any reversal could result in a temporary hiccup. Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Mankind Pharma Ltd, India’s fourth largest pharmaceutical company in terms of Domestic Sales and second largest in terms of sales volume for FY22, has filed its Draft Red Herring Prospectus with market regulator Securities and Exchange Board of India. The company’s initial public offering comprises an offer for sale of 40,058,884 equity shares of face value Rs 1 each by selling shareholders including the promoters and existing investors.
The Reserve Bank of India is likely to raise repo by 50 bps, said Morgan Stanley. “We were earlier expecting a 35bp increase, however, sticky inflation and continued hawkish stance of DM central banks, warrants continued front loading of rate hikes, in our view,” Morgan Stanley said.
CSB Bank announced the appointment of Pralay Mondal as new Managing Director and CEO of the bank. The stock jumped 3 per cent amid market-wide sell-off.
“Indian equity markets are witnessing some selling pressure after a long period of resilience. Global cues continuously remain weak as there is a sharp surge in the dollar index and US bond yields post US inflation numbers. We may continue to outperform but we can't remain in isolation for a long time. Global markets are looking nervous ahead of the FOMC meeting because there is talk of a 100 basis rate hike while a 75 basis rate hike was already discounted. Technically, Nifty is facing resistance at the 18100 level and it has slipped below its 20-DMA of 17700 which may lead to some more selling pressure where 17470-17400 is an immediate demand zone then 17150 is a sacrosanct support level. Banknifty is outperforming but yesterday, it ends at a day's low after hitting a fresh all-time high which is a little disappointing. On the downside, 40900-40700 is an immediate demand zone; below this, 40270 is the next important support level.”
~Santosh Meena, Head of Research, Swastika Investmart Ltd.
“Global markets especially US and Europe are extremely bearish due to rising inflation where the US is factoring in another 100 basis points rate hike has led to a bearish sentiment in both Nifty and Sensex. Technically, Nifty now has support at 17480. A daily close below this level could lead to 17170 in the coming sessions. Major resistance is now at 17745.”
~AR Ramachandran, Co-founder & Trainer, Tips2Trades
The initial public offering (IPO) of leading precision bearing cages manufacturer Harsha Engineers International continued to attract strong response from investors. The issue has been subscribed 12 times, garnering bids for 20.07 crore equity shares against offer size of 1.68 crore shares, as of 11 am on the final day of bidding.
The maximum response was seen from non-institutional investors, putting in bids 30 times the allotted quota, followed by retail investors subscribing 10 times the portion set aside for them.
Bank Nifty was down 0.3% at 41,085. The index slipped below 41000 to hit in intraday low of 40818 in morning deals.
Godrej Properties said it has achieved sales bookings worth Rs 1,210 crore in its two new housing projects in Mumbai. Godrej Properties, a part of business conglomerate Godrej Group, is one of the leading real estate developers in the country.
Adani Ports and Special Economic Zones (APSEZ) on Thursday said its wholly-owned subsidiary HDC Bulk Terminal Ltd has signed a concession agreement with Syama Prasad Mookerjee Port Kolkata (SMPK) for the mechanization of a berth at Haldia Port.
IndusInd Bank shares gained 2% on strong outlook. The stocks has risen 53% in 3 months. Analysts expect that the bank's credit growth and profitability is expected to be strong on account of revived demand in MFI and vehicle finance.
With a market cap of Rs 4.31 trillion, Adani Enterprises stood at 12th position in overall market cap ranking on the BSE.
The agrochemical company in joint venture with CleanMax Enviro Energy Solutions, a Mumbai-based renewable energy company, will establish a hybrid solar-wind energy power plant in Gujarat. The joint venture will set-up and operate a hybrid captive power plant with a capacity of 28.05 MW of solar power and 33 MW of wind power.
BSE Sensex fell 336 points or 0.6 per cent to 59,598 points, while NSE Nifty 50 was down 0.5 per cent to 17,789
The downside bias that was expected to prevail yesterday, managed to drag Nifty only as far as 17860 vicinity. The full extent of the bearish move could be revealed today. While we expect dips to 17700 to attract bargain buying, inability to clear 17860 on the bounce could signal extended downsides, with the first objective at 17460. Anand James – Chief Market Strategist, Geojit Financial Services
“Indian markets settled in negative territory for the second successive day on Thursday due to weak Asian cues. Today, the markets are likely to make negative start tracking weakness in global peers. Some pessimism may come as the World Bank said the world may be edging toward a global recession as central banks across the world simultaneously hike interest rates to combat persistent inflation. There will be some cautiousness as Global Rating agency Moody’s said India’s rated infrastructure firms can largely withstand further depreciation in the value of rupee against US dollar due to financial hedges and other mitigants. On the technical front, the key resistance level for Nifty50 is 18,000 and on the downside 17,650 can act as strong support. Key resistance and support levels for Bank Nifty are 41,700 and 40,800 respectively.”
~Mohit Nigam, Head – PMS, Hem Securities
“The market has started showing some indications of fatigue. Globally, the major concern now is that the Fed might oversteer the economy and end up raising rates too much too fast, pushing the US economy into a sharp recession. There are talks of the terminal Fed rate rising to 4.25 percent. Sharply rising rates, rising bond yields and rising dollar are negatives for equity.”
“In this challenging environment, it would be difficult for India to sustain the decoupling from the global trend which has been a recent pattern in India. Moreover, FIIs have halted their sustained buying and have turned sellers, though this is not yet a trend. Investors may adopt a wait and watch attitude till the Fed meeting is over on 21st September. Bank Nifty continues to be strong.”
~VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services
“Equity markets are likely to extend losses in early trades Friday, mirroring the weakness in global indices as investors are gearing up for a stronger interest rate hike by the US Fed following the recently announced higher-than-expected inflation numbers. The street now widely believes that the Fed will raise rates by 75 bps in its September 21st meet, followed by a 75 bps hike in November, and mostly deliver a further 50 bps in December. Whenever the Federal Reserve has raised interest rates – emerging markets like India turn volatile as capital tends to flee to safer shores as yields rise elsewhere. Also, the negativity can be also attributed to yesterday’s provisional data which indicates that FIIs were net sellers worth Rs 1270 crores, while domestic institutional investors too were net sellers of shares worth Rs 929 crore. Technically speaking, Nifty’s recent bullish fairy tales ends below 17701 mark, while the index faces the biggest hurdle at 18115.”
~Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities Ltd
The definition of “small companies” under the Companies Act, 2013 been further revised by increasing such thresholds for paid up capital from “not exceeding Rs 2 crore” to “not exceeding Rs 4 crore” and turnover from “not exceeding Rs 20 crore” to “not exceeding Rs 40 crore”. Earlier, this was revised by increasing their thresholds for paid up capital from “not exceeding Rs 50 lakh” to “not exceeding Rs 2 crore” and turnover from “not exceeding Rs 2 crore” to “not exceeding Rs 20 crore”.
Patanjali, the FMCG brand started by Baba Ramdev, will announce its initial public offering (IPO) plans for five group companies on Friday at a press conference. The IPO plan includes Patanjali Ayurved, Patanjali Wellness and Patanjali Medicine and Patanjali Lifestyle, according to some news reports. The company said the move is to scale new heights of corporate performance.
Downside risks continue to dominate the global economic outlook and some countries are expected to slip into recession in 2023, but it is too early to say if there will be a widespread global recession, IMF spokesman Gerry Rice said on Thursday.
August retail sales rise 5.4% YoY versus estimate of 3.3%
Industrial output rises 4.2% YoY against estimate of 3.8 percent
Oil prices dipped in early trade on Friday, extending the week's losses on concerns over tight supply. Brent crude futures fell 22 cents, or 0.2%, to $90.62 a barrel as at 0052 GMT after sliding 3.5% to a one-week low in the previous session.
Bulls are likely to take backseat on Friday as SGX Nifty hinted at a negative start for Indian equities. Nifty futures traded 111 points, or 0.62% lower at 17,768 on the Singapore Exchange, signaling that NSE Nifty 50 and BSE Sensex were headed for a negative start. “We broadly remain positive on the markets and suggest buying on dips. Nifty trades with a positive bias on monthly basis but short term momentum indicators suggest some jitters. This could result in a phase of correction/consolidation. IT and select BFSI stocks remain attractive while Banking can witness some profit booking,” said Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities.
US stocks fell in a choppy session on Thursday after the latest batch of economic data did little to dial back expectations for the Federal Reserve’s next hawkish move. On Thursday, the Dow Jones Industrial Average fell 173.07 points, or 0.56% to 30,962.02; the S&P 500 lost 44.69 points, or 1.13%, to 3,901.32 and the Nasdaq Composite dropped 167.32 points, or 1.43%, to 11,552.36.
Shares in the Asia-Pacific fell on Friday as investors digest US economic data and look ahead to the release of China’s industrial production and retail sales figures for August. Japan’s Nikkei 225 0.84%, and the Topix index slipped 0.51%. In Australia, the S&P/ASX 200 declined 0.38%. South Korea’s Kospi shed 0.73%. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.3% lower.
Sensex closed 412.96 points or 0.68% lower at 59,934. Nifty shed 126.40 points or 0.70%, ending at 17,877.40. Among sectors, Nifty IT was the top loser with Infosys and Tech Mahindra losing 3% each. Autos were in the fast lane as Maruti Suzuki surged 3.2%. Eicher Motors rallied 2.7% to join the Rs 1 trillion market cap club. Pharma and realty sectors took a beating too, losing over a percent.