Muhurat Trading Highlights: Share markets surge as Sensex closes at 60067, Nifty at 1791; M&M, ITC top gainers

Domestic markets closed the muhurat trading session with gains. Broader markets outperformed benchmark indices. Bank Nifty closed 0.44% while India VIX closed below 16 levels.

On the BSE Smallcap index, Mirza International was the top gainer, up 17%, followed by Mediacamen Biotech and SKF India.

“Over the past one year we have seen the Nifty deliver a 50% return, and the small /mid-cap indices broadly delivered around 80% returns. It will be unfair to assume that the benchmark indices will deliver similar returns in the short term. Benchmark index returns in the short term may not be the right way to assess the investment opportunity. A carefully constructed portfolio which harnesses the tailwinds, which the Indian Economy is expected to enjoy in the coming years, should deliver 12-15% compounded returns over the medium term. Right from IT, domestic manufacturing, real estate, and real estate full chain, to financial services, capital market intermediaries, and capital goods --- all the sectors are expected to do well over the medium term. Hence, over the medium term investors can make significant wealth by investing in domestic equities," said Krishna Kumar Karwa, Managing Director - Emkay Global Financial Services.

India VIX was nearing 16 levels on muhurat trading session as the index trimmed early losses nearing the closing bell.

ICICI Bank and Ultratech Cement were down with marginal losses during the muhurat trading session. 

All sectoral indices on NSE were in the green on Thursday. Nifty media was up 1.43% as the top index gainer, followed by Nifty PSU Bank and Nifty Auto index. Bank Nifty was up 0.54%. 

Real Estate has seen appreciation, but there is still more legroom in the space, said Madhu Kela in an interview with CNBC TV18. He added that the trend does not look to die in the near term and believes some stocks in the real estate space are still interesting. 

"People are buying anything in this market, and that does not end well," said Madhu Kela of MK ventures in an interview to CNBC TV18. "Do your own homework don't go chasing momentum and tips," he added.

"After a great year for equity markets, investors are looking forward to markets continue rising though not at the same pace. Global headwinds in the form of rising inflation and withdrawal of monetary stimulus may impact the momentum, but strength in Indian macros and improving micros may help offset these. Investors need to conduct portfolio review, asset allocation review, and raise the quality of stocks held in their portfolio," said Dhiraj Relli, MD & CEO, HDFC Securities.

Money making may not be as easy as it was in the last 18 months where the entire market rallied into one of the best bulls ever witnessed. We are advising clients to be selective and play smart with sectoral allocation to reap the benefits of the move from here. Technically, we remain positive on the Nifty for a target of 19,500 by March next year and 21,000 by next Diwali. Dips and corrections if any should be good buying opportunities and if played well can help us make the most of what Samvat 2078 has to offer us.

~ Rahul Sharma, Director & Head- Research, JM Financial Services

Last year before Diwali, India was grappling with the aftermath of the first Covid-19 infections wave and there were considerable uncertainties on how the pandemic will impact India and globe. Stock markets had recovered from a steep Covid-19 induced fall and benchmark nifty was pushing near pre-Covid all-time highs levels of 12000 levels. Last year’s Diwali picks were issued in such an uncertain environment.

India VIX, the volatility gauge, gave up 16 levels during the muhurat trading session. The index was down 1.1%.

Indian Hotels was the top gaining scrip on S&P BSE 500 index on the muhurat trading session. The stock was up 5.5%, followed by IIFL Finance, up 5%, and Aster DM, up 4.4%.

All Sensex constituents were trading with gains on Thursday as the muhurat trading session went on. The top gainer was up Mahindra & Mahindra, up 2.66% while Bajaj Finserv was the worst performing stock, but was up 0.14%.

Smallcap and Midcap indices were outperforming benchmark indices during the Muhurat trading session. Nifty Midcap 50 was up 0.75% while the Smallcap 50 index was up 1.26%. Nifty 50 meanwhile, was up 0.62%.

Mahindra and Mahindra was the top gaining stock on stock on Sensex on muhurat trading session, up 1.63%. This was dollowed by Kotak Mahindra Bank, State Bank of India, and IndusInd Bank.

Domestic markets opened in the green on muhurat trading session. Broader markets outperformed benchmark indices. Bank Nifty was up in the green, looking to regain 40,000 mark. 

Nifty 50 index ended the pre-open session above 17,900 while Sensex was above 60,200. 

Big Bull Rakesh Jhunjhunwala believes that the Nifty 50 index will not go below 16,500. In an interview with CNBC TV18, the ace investor said that the index, in his opinion, will not correct more than 10%.

Ace investor Rakesh Jhunjhunwala said that the market uptrend is very much intact, in an interview with CNBC TV18. "People are getting alarmed. At the peak of covid, index had gone from 11,500 to 7,500 now it sits above 17,000. We are racing from 7,500 we will pause that is healthy," he said. 

On Muhurat trading session, Sensex regained 60,500 while Nifty 50 was inching closer to 18,000 mark as bulls look set to help investors pocket healthy returns on muhurat trading. 

Domestic markets witnessed a stellar journey during Samvat 2077. Despite the pandemic in play and the second wave spreading havoc across the country, the NSE Nifty 50 index recorded its best ever returns in 12 years. Foreign investors continued to buy domestic and large number of retail investors entered the market. Going ahead, fundamental reasons such as pro-growth policies, National Asset monetization pipeline, and strong recovery in real estate are some of the reasons that are keeping investors analysts at ICICI Direct bullish on India’s growth story. The brokerage firm has hand-picked seven stocks that it is advising investors to buy this muhurat trade.

Check stocks to buy

SAMVAT 2078 will be a year of balance sheet leverage, led by significant improvement in corporate profitability. Cumulative and rolling net profit of NSE 500 universe or the last four quarters has touched an all-time high with loss-making sectors turning positive and significantly contributing to the net profitability. Moreover, ROE or the broader market is improving after a muted performance for several years. Overall, the Indian market has entered into an earning’s up-cycle with an expectation of more than 20% growth in Nifty’s earnings in the next two years. With faster economic recovery on the cards, more cyclical sectors are likely to join the rally with the expectation of higher government spending moving forward. The Small and Mid Caps are picking up steam and balance sheet leveraging is likely to play out in 2022 with an improved outlook on return ratios and profitability.

"After the spectacular returns in Samvat 2077, investors should expect modest returns only, say in low teens, in Samvat 2078. This Samvat is likely to be very volatile, unlike last Samvat. Rising inflation would be the biggest known threat to the market. Rate hikes by the Fed can happen by the end of 2022  or, perhaps, earlier than that if persistent inflation and the bond market forces the Fed's hands. Rate hikes by the Fed will lead to some capital flight from emerging markets like India and this is likely to trigger some sharp correction in the market. But the correction may turn out to be low and short-lived if the economy rebounds smartly. Metals, Realty, IT, Banking, Financials like mortgage and Fintech, Telecom and Capital goods are likely to perform well. In Samvat 2077, while Nifty delivered 40% return, the Mid and Small-cap Indices delivered 70 % and 80 % returns respectively. This outperformance may continue. Investors should play this space through the mutual fund route, preferably  through SIPs."

~ VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. 

SGX Nifty was trading flat ahead of the muhurat trading session today. SGX Nifty was down 4 points ahead of the day's special session.

Stock exchanges will open for an hour this Diwali for the ‘Muhurat’ trading session on November 4. BSE and NSE will allow investors to buy and sell stocks from 6:15 PM to 7:15 PM on Diwali. The muhurat trading session is held every year on the occasion of Diwali, for an hour. The broking community performs Lakshmi Puja and trade during this period. The muhurat trading session has a block deal session prior to normal trading and is followed by a closing session. Last year, BSE Sensex gained 145 points to end at its highest ever closing tally at that time while NSE Nifty 50 closed below 12,800.

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