Market Highlights: Sensex ends flat with a negative bias, Nifty above 11,200; IndusInd Bank, ONGC down 3%

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Updated: September 29, 2020 4:34:25 pm

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Sensex and Nifty danced between gains on losses on Tuesday before ending flat with a negative boas. ITC, Axis Bank, ICICI Bank end in red.

U.S. stocks, equities, dollar, gold, COVID-19 relief package, stimulusGold edged higher and the dollar weakened as hopes for a U.S. coronavirus aid package ahead of the presidential election rose.

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Sensex and Nifty ended Tuesday’s session flat with negative bias. It was a volatile day for the benchmarks that started the day with gains and then slipped to trade with losses. S&P BSE Sensex ended 8 points or 0.02% lower at 37,973.22 points while the Nifty 50 finished trading at 11,222 points. Ultratech Cement shares jumped over 3%, followed by TCS, and Tata Steel gaining over 2.5%. Shares on ONGC tanked nearly 4% while those of IndusInd bank slipped over 3%.  ICICI Bank, Axis Bank, SBI, and Kotak Mahindra Bank ended with losses. 

The week is again witnessing a rush of initial public offerings (IPO) with three of the issues opening for subscription today. These include UTI Asset Management Company, Mazagon Dock Shipbuilders Ltd, and Likhitha Infrastructure. Among the three issues, UTI Asset management Company’s Rs 2,160 crore IPO will be the largest followed by Mazagon Dock Shipbuilders’ Rs 444 crore issue and then Likhitha Infrastructure’s Rs 61.2-crore IPO. The three issues will remain open for subscription till Thursday. Investors have so far shown positive response to a number of IPOs that have made it to Dalal Street in recent weeks. Happiest Minds and Route Mobile have seen bumper listings on the street. 

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Highlights

    16:33 (IST)29 Sep 2020
    IPO watch: Magazon Dock issue oversubscribed, UTI AMC subscribed 25%, Likhitha Infrastructure at 84%

    Primary markets saw three fresh initial public offerings open for subscription on Tuesday, adding to the recent spike in the number of IPOs that stock markets have entertained. Of the three IPOs that opened today, retail investors were seen fully subscribing to their portion in two of these. Mazagon Dock Shipbuilders IPO was fully subscribed before market closing on Tuesday with retail investors subscribing to their quota 5.2 times on day one. Likhitha Infrastructure IPO was subscribed 84% with retail investors subscribing their portion 2.24 times. The largest among the lot, UTI AMC, which has been subscribed 25% so far.

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    16:28 (IST)29 Sep 2020
    Sensex, Nifty halt 2-day gaining streak, end flat; all bank stocks except HDFC Bank end in red

    Domestic benchmark indices ended flat on Tuesday morning, halting their two-day gaining spree. S&P BSE Sensex ended 8 points or 0.02% lower at 37,973.22 points while the Nifty 50 finished trading at 11,222 points. Ultratech Cement shares jumped over 3%, followed by TCS, and Tata Steel gaining over 2.5%. It was a volatile trading session that saw the benchmarks start with significant gains and then slip to trade with losses, only to end flat later on. Only HDFC and HDFC Bank were the two banking and finance sector stocks to end with gains, rest all closed with losses.

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    15:39 (IST)29 Sep 2020
    Sensex and Nifty end flat on Tuesday

    Sensex and Nifty managed to recover from the day's lows and ended flat with a negative bias. S&P BSE Sensex was down 8 points on closing while the Nifty 50 managed to hold above the 11,200 mark. 

    15:05 (IST)29 Sep 2020
    Diverging Recovery Paths Weigh On Asia-Pacific Credit Conditions: S&P Global

    Deepening divergence in the COVID-19 recovery is weighing on credit conditions in Asia-Pacific. Economic fallout has bottomed but the rebound is showing a big disparity among countries as well as sectors, potentially leading to widening variation in credit trends. That's according to a report S&P Global Ratings.

    "These differences in recovery rates in Asia-Pacific cut across geographic, sector, and borrower profiles," said S&P Global Ratings credit analyst Christopher Yip. "Lenders will remain selective, especially as tapering relief measures, including loan moratoriums, threaten to reveal masked difficulties."

    14:56 (IST)29 Sep 2020
    Mazagon Dock Shipbuilders IPO fully subscribed

    The initial public offering of Mazagon Dock Shipbuilders was full susbcribed on the initial day of the offer oening for susbcription. Retail investors have oversubscribed their portion 2.31 times while the overall issue was susbcribed 1.20 times. 

    14:50 (IST)29 Sep 2020
    ITC’s plan to kick the butt; FMCG business set for rapid growth, these products to drive sales

    The hospitality-to-FMCG conglomerate ITC Ltd recently met fund houses to share the company’s non-cigarette strategy, drawing attention towards other segments of the company. In an effort to kick the butt away, ITC highlighted that its FMCG business has managed to grow four times in the last decade. The conglomerate enjoys a commanding position in various sectors including, FMCG, Hotels, Paperboards, Packaging and Agri-Exports, while it has been exploring and gaining market share in new business segments as well. ITC is one of the biggest players when it comes to cigarettes in India. The stock has been trading at discounted valuations despite strong fundamentals in the recent months.

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    14:07 (IST)29 Sep 2020
    Mid-day market update

    "Indian Indices Nifty and Sensex trade range bound, nifty down by 17 points (0.16%) and sensex down by 52 points (0.14%). Indian broader market not able to sustain its opening gain. Indian Indices open higher on the back of positive global market clues. Today S&P BSE Information Technology (up 1.0%), S&P BSE CONSUMER DURABLES (up 1.09%), while S&P BSE Telecom (down 2.0%),S&P BSE Utilities (down 1.53%) . We expect the market to trade range bound and we expect momentum in the pharma & IT sector to continue. Global Market update - DOW Jones up by 410 points (up 1.51%) and NASDAQ up by 203 points (up 1.87%)," said Yash Gupta, Equity Research Associate, Angel Broking Ltd.

    13:33 (IST)29 Sep 2020
    UTI AMC grey market premium slips, Mazagon Dock gains; two issues oversubscribed by retail investors

    IPO market is again in a busy week, with three initial public offerings having opened for subscription today. These are UTI Asset Management Company; Mazagon Dock Shipbuilders Limited; and Likhitha Infrastructure. All three issues will remain open till Thursday for subscription. In the recent weeks, primary markets have witnessed a rush of IPOs which have been received well by investors across the board. Retail investors have oversubscribed all the issues so far this month. However, after the recent surge of public issues, and run up in stock markets the grey market premiums have been dwindling.

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    13:06 (IST)29 Sep 2020
    UTI AMC – IPO Note - Attractive valuation; equity AUM a key driver ~ Centrum

    We are optimistic about the AMC space as asset management, being a fee based business is slated to grow (QAAUM) at an 18% CAGR in the medium term led by overall economic growth, growing investor base and higher disposable income levels. Recent regulatory changes such as revised expense ratios would lower costs for mutual fund investors which should aid in greater retail participation. UTI AMC is the 2nd/8th largest AMC in terms of total/MF AUM with asset size as at Jun-20 being Rs9.83/Rs1.34 trn. Over FY17-20, RoE fell from 18.5% to 10.2% as yield dropped by 10bps since the mix shifted from debt to liquid and others while equity share at 32% as at June’20 is lower to listed peers. Weaker RoE profile was also driven by lower dividend payout (4-yr average 19%). This could change as equity outlook is positive and dividend payout might rise to 50% in FY21E. OFS amounting to Rs21.6bn for 39mn shares (31% stake) with a price band of Rs552-554 implies an overall market cap of ~Rs70bn. Valuation is attractive with P/E at 25.4x FY20 EPS. ~ Centrum Broking

    12:57 (IST)29 Sep 2020
    IPO watch: Retail investors oversubscribe their portion of Likhitha Infra, Mazagon Dock IPO

    So far the UTI AMC IPO has been subscribed 11% with retail investors subscribing to 20% of their quota. On the other hand Mazagon Dock IPO was oversubscribed by retail investors with the total subscription at 72% of the issue. The Likhitha Infrastructure issue was subscribed 38% in the initial hours with retail investors oversubscribing the issue. 

    12:33 (IST)29 Sep 2020
    Cement volume improving in few markets; prices should rise in Q3

    Demand improvement expected in North, East and Central regions: Our channel checks indicate demand growth of 6-8% yoy in the North/Central regions and volume growth of 2-3% yoy in the East region in Sep’20. In the Central and North regions, dealers indicated some pick-up in the urban demand recently. In the East region, demand improved by 2-3% yoy in Aug’20 led by growth in Bihar, West Bengal and Jharkhand markets. In Sep’20, demand in the region is expected to improve by 2-3% yoy. Demand in the South region remains affected by the heavy monsoon in Kerala, Andhra Pradesh, Telangana, and labor shortage. Demand in the South region is estimated to decline 20-24% yoy in Jun-Aug’20 and 18-20% yoy in Sep’20. In the West region, demand is likely to fall 15-17% yoy, dragged by a 22-24% drop in Maharashtra, though volume in Gujarat is expected to drop 7-8% yoy. As per Core Industries data, pan-India cement production declined 13.5% yoy in Jul’20. Based on our interactions, we expect volume decline of 9-10% yoy in Aug’20 and 4-6% yoy in Sep’20.~ Emkay Global

    11:38 (IST)29 Sep 2020
    Top gainers on Sensex at this hour

    Tata Consultancy Services was the top performing scrip on the benchmark Sensex which was trading with losses itself. Another Tata Group company, Titan was the second best performer while Reliance Industries was also following closely behind. 

    11:23 (IST)29 Sep 2020
    Nifty finds support at 11,175 - 11,100

    "The Nifty futures open interest has increased by 9.86% Bank Nifty futures open interest has decreased by 0.04% as market closed at 11227.55 levels on Monday. The Nifty October future closed with a premium of 10.45 point against a discount of 8.05 point in last trading session. The November series closed at a premium of 28.7 point," said analysts at Angel Broking. 

    11:17 (IST)29 Sep 2020
    Anil Agarwal’s Vedanta gets nod from NSE, BSE for delisting; process to start this week

    Anil Agarwal-led Vedanta Limited has received in-principle approval from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) to delist shares from the exchanges. In an exchange filing today the metal and mining major said that Vedanta Resources Limited and its wholly owned step down subsidiaries namely, Vedanta Holdings Mauritius Limited, and Vedanta Holdings Mauritius II Limited will acquire the fully paid-up equity shares of the company. With this the company has initiated the reverse book-building process which will see bids opening from October 5. Vedanta’s shares are currently trading at Rs 140 per share on Tuesday.

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    10:53 (IST)29 Sep 2020
    Sensex, Nifty slip into the red

    ICICI Bank, Bharti Airtel, ITC, IndusInd Bank were seen dragging the index lower after the initial hours of trade on Tuesday. Reliance Industries shares were up 1%. 

    10:40 (IST)29 Sep 2020
    Mazagon Dock Shipbuilders IPO: Attractive valuation, shipbuilding dominance; should you subscribe?

    The initial public offering (IPO) of state-owned defence firm Mazagon Dock Shipbuilders Ltd (MDSL) is set to open for bidding today. The company has fixed a price band of Rs 135-145 per share, with a minimum bid lot size of 103 shares and in multiples thereof. Investors will have to shell out at least Rs 13,905 to bid for this issue. The Rs 444-crore Mazagon Dock Shipbuilders issue will close for subscription on October 1.

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    10:36 (IST)29 Sep 2020
    GSK Pharma update

    GSKP’s exposure only to domestic formulations, strong balance sheet and strong brand equity augurs well for the company. Recent correction has made valuations fair, hence we upgrade to HOLD from Reduce with a target price of Rs1,539/share based on 40xSep’22E EPS. Key downside risks: addition of key drugs in National List of Essential Medicines (NLEM), product concentration and government intervention. Key upside risks: better than expected performance in key products and launch of COVID-19 vaccine in India. 

    ~ ICICI Securities

    10:18 (IST)29 Sep 2020
    Tata Group to raise heat for Amazon, Mukesh Ambani’s Jio; courts investors for e-commerce platform

    India’s Tata Group is in talks with potential investors about taking stakes in a new digital platform, people familiar with the matter said, seeking to modernize its consumer businesses as retail giants like Amazon.com Inc. and billionaire Mukesh Ambani pile into the country’s fledgling e-commerce market.

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    10:01 (IST)29 Sep 2020
    Sensex, Nifty trim gains but still in green; TCS, Infosys surge, Bharti Airtel, ICICI Bank slip

    Domestic equity markets began Tuesday’s session with gains, looking to add to their 2-day gaining spree. S&P BSE Sensex jumped over 200 points on opening to gain more than half a percent, while the 50-stock Nifty was just shy of the 11,300 mark.  However, minutes after opening Sensex plunged marginally while Nifty was still above 11,250 mark. Volatility was 1.32% lower at 19.31 levels. On opening the midcap and small cap indices were outperforming the benchmarks but soon that changed with the midcap indices slipping to trade flat with a negative bias. 

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    09:49 (IST)29 Sep 2020
    Moody's downgrades IIFL Finance to B2 from B1, outlook stable

    Moody's Investors Service has downgraded IIFL Finance Limited's ("IIFL Finance") corporate family rating (CFR) to B2 from B1, senior secured debt rating to B2 from B1, and senior secured medium-term note (MTN) program rating to (P)B2 from (P)B1. The rating outlook has been changed to stable from rating under review.

    09:38 (IST)29 Sep 2020
    Gold crashed last week, but took 38.2% retracement support on Fibonacci scale

    Gold crashed last week, but presumably took 38.2 percent retracement ($1833) support on Fibonacci scale measured between March low and August high. It also took support near 100 day moving average. If these supports hold, there is no doubt that gold could scale back to $2000 level. Below $1833, $1790 and $1750 are two important supports to look into. In case of silver, it will follow the yellow metal, and will recover most of the ground it lost recently. However, retail traders must avoid speculative trades in silver: Debajit Saha, Senior Analyst, Precious Metals at Refinitiv

    09:29 (IST)29 Sep 2020
    Futures & Options snapshot by HDFC Securities

    09:25 (IST)29 Sep 2020
    Time to remain bullish or cautious?

    "Nifty Open Interest Put Call ratio increased to 1.37 levels from 1.31 levels. Amongst the Nifty options (01-October), Put writing was seen 11100-11000 levels, Indicating 11100-11000 level to act as a support going forward. On the higher side, immediate resistance is seen around 11300 level where calls have been written," said analysts at HDFC Securities while advsing investors to stay bullish with a stop loss of 11,100. 

    09:21 (IST)29 Sep 2020
    Sentiment likely to be positive in bullion in intraday

    MCX gold appreciated due to a softer dollar, with investors focusing on the first U.S. presidential debate and progress on a new U.S. stimulus bill. President Donald Trump and former Vice President Joe Biden will square off in their first presidential debate later in the day, with five weeks to go until the Nov. 3 general election. Meanwhile, the investment demand has improved ahead of the U.S. election. The sentiment is likely to be positive in the bullion in intraday: Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers.

    09:19 (IST)29 Sep 2020
    Sensex and Nifty open with gains on Tuesday

    Sensex and Nifty added to gains on Tuesday mornign with the benchmark indices suging half a percent on opening. Nifty 50 was inching closer to cross the 11,300 mark. Asian Paints and Tata Steel were the top gainers. 

    09:14 (IST)29 Sep 2020
    Pre-open session sees Nifty surge higher, Sensex adds 195 points

    The benchmark indices surge during the pre-opening session with the Sensex adding 195 points while the Nifty 50 was above the 11,200 mark. 

    09:10 (IST)29 Sep 2020
    Stocks in focus: RIL, Bharti Airtel, BPCL, Max Financial, DHFL, IIFL Finance, defence stocks

    After starting the week on a strong footing, BSE Sensex and Nifty 50 were likely to open flat with a positive bias on Tuesday. Nifty futures were trading 21.70 points or 0.19 per cent up at 11,264.20 on Singaporean Exchange. Investors will keep tabs on US presidential candidates debate, IPOs, stock-specific development, trends in COVID-19 cases, news related to coronavirus vaccine, oil prices and movement in rupee, along with other global cues.

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    09:08 (IST)29 Sep 2020
    Indian markets are likely to open flat to positive

    Indian markets are likely to open flat to positive tracking a rebound in global markets amid positive economic data and potential new Coronavirus relief package in the US that outweighed concerns about rising cases. Global news flows and sector specific developments will be key monitorables. ICICI Direct Research

    09:02 (IST)29 Sep 2020
    Trade setup for the day

    For today's session, analysts predict the index to move with a positive bias while maintaining higher high-low formation. "Thus, intraday dip towards 11205-11230 should be used to create long position for target of 11317," said ICICI Direct. "Going ahead, we expect index to consolidate in the broader range of 11000-11500 and form a higher base. In the process, we expect broader market to endure its relative outperformance. Thus, any dip from here on should not be construed as negative, instead it should be capitalised to accumulate quality stocks. Key point to highlight during past four weeks corrective phase is that, the current pullback of 449 points (10790-11239) is larger in magnitude compared to mid-September pullback of 433 points (11185-11618). The elongated pullback supported by across sector participation signifies dwindling corrective bias that augurs well for rejuvenation of up trend," they added.

    08:55 (IST)29 Sep 2020
    Bank Nifty: Consolidation expected within 20000-23000

    "The Bank Nifty underperformed the Nifty and remained volatile throughout the August series. The decline of the banking index was almost two times the Nifty’s decline in September as the banking index fell over 13%. Bears were fully in control in most of the trading sessions of the September expiry as every small bounce was being sold. The Bank Nifty/ Nifty price ratio continues to suggest weakness. It is trading below level of 2, with the Bank Nifty recovering to these levels in the last couple of months from lows of 21000. Inability to hold these levels could drive the Bank Nifty towards 20000 or below," said ICICI Direct.

    08:46 (IST)29 Sep 2020
    BUY Tata Power October future at Rs53.75-54.25 ~ IIFL Securities

    BUY Tata Power October future at Rs53.75-54.25, Stop Loss Rs52.95 & Target Rs55.25 

    Nifty Outlook: Nifty finds support around 11099 while 11350 will act as resistance on the upside. Bank Nifty finds support around 21350 while 22250 will act as resistance.

    08:33 (IST)29 Sep 2020
    Nifty approaches resistance levels; buy on dips, say analysts

    After having surged 1.6% on Monday, Nifty 50 is now approaching the crucial resistance level of 11,300. Analysts across the board have adviced investors to stay cautious at these levels. "Based on sectoral performance we may even see the Nifty index approaching to the resistance level of 50 days SMA at 11300. The support for the index exists at 11150 and 11070 levels. In the current scenario One should adopt a buy on dips strategy," said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

    08:27 (IST)29 Sep 2020
    FII and DII trades

    Foreign Institutional Investors (FII) sold stocks worth Rs 26.98 crore on monday while Domestic Institutional Investos (DII) bought equities worth Rs 542 crore. 

    08:24 (IST)29 Sep 2020
    Trading strategy for Futures

    Analysts at ICICI Direct recommend traders to look for sell on rise at said resistance levels. "We believe the current downtrend of the Nifty may go into some consolidation before resuming the fresh trend while it should consolidate largely between 10800 and 11300 as the series progresses," they added.

    08:21 (IST)29 Sep 2020
    Nifty trading near oversold territory?

    'As the recent sell-off is in line with the reaction of global markets to a second wave of Coronavirus fear in Europe, we would point out that any attempt to create fresh shorts at current levels would not be advisable as the Nifty has given up over 800 points from its higher levels in the expiry week of September and is now trading near oversold territory,' said ICICI Direct in recent report. 

    08:18 (IST)29 Sep 2020
    Nifty has major Call build up at 11500 strikes

    Analysts say that the pessimistic tone that was seen at the inception of the September series is missing in the October series. 'Call writers were reluctant to short any near the money calls with marginal OI seen at 11000, 11500, which was the last major breakdown. Only a move above 11300 could lead the Nifty to consolidate with a positive bias with stiff resistance of 11500, which is the Call base and also the VWAP level for September placed near 11500,' said ICICI Direct research.

    08:15 (IST)29 Sep 2020
    What in for today's trade?

    "Nifty is currently placed at the minor trend line resistance around 11250 and this hurdle is expected to be broken on the upside by next session. After this hurdle, one may expect 11350-11400 as crucial overhead resistance for the near term. The bearish negative pattern of lower tops and bottoms is intact and present upmove could be a part of a new lower top formation. We need reversal at the lower highs to call this as a lower top reversal pattern," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

    08:14 (IST)29 Sep 2020
    A chartists view of Monday's trade

    "Nifty continued to display strength on the upside on Monday and closed the day decently higher by 177 points. A long bull candle was formed with opening upside gap and the said up gap remains unfilled. This is positive indication and if this gap remains unfilled for the next 2-3 sessions, then that could mean more upside for the near term," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

    08:13 (IST)29 Sep 2020
    UTI AMC IPO at glance

    The second-largest asset management company by assets under management has fixed the price band at Rs 552-554 per equity share. It will only be an OFS from existing shareholders like State Bank of India (SBI), Life Insurance Corporation (LIC), Bank of Baroda (BoB), Punjab National Bank (PNB), and T Rowe Price International (TRP). Investors can bid for a minimum of 27 equity shares and in multiples of 27 shares thereafter. Analysts say that UTI AMC has received a mandate to manage 55% of EPFO in 2019 which has significantly boosted its AUM. “This AMC has delivered decent returns and profit margins in the past few years with a mcap to equity QAAUM of 18% compared to HDFC AMC’s 29%,” said Nirali Shah, Senior Research Analyst, Samco Securities. Additionally, this year itself it granted ESOPs at Rs 728 per share while its price band is at Rs 552-554/share which means it leaves more money on the table for investors for listing gains.

     
    08:11 (IST)29 Sep 2020
    Max Healthcare Institute’s promoter sells shares worth Rs 182 crore

    Max Ventures Investment Holdings, a promoter of Max Healthcare Institute, sold co’s shares worth nearly Rs 182 cr on Monday through an open market transaction. As per the bulk deal data on the BSE, Max Ventures Investment Holdings offloaded 1.67 crore shares of Max Healthcare at Rs 108.88 apiece, valuing the deal at Rs 181.96 crore.

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