Share Market Highlights: Sensex ends 272 points higher, Nifty at 11,470; Bajaj Finance, JSW Steel, Airtel top gainers

Share Market Highlights: Sensex ends 272 points higher, Nifty at 11,470; Bajaj Finance, JSW Steel, Airtel top gainers

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Sensex, Nifty Highlights on September 1: Sensex and Nifty ended on a bullish note on Tuesday, led by buying pressure in media and auto stocks, amid positive global equities. Reversing trend from 2% fall yesterday, Sensex ended 272 points higher at 38,900 and Nifty gained 82 points higher at 11,470.

Traders said the market participants were optimistic on Supreme court decision for AGR and Interest waiver case as well as on loan moratorium. Investors also turned bullish post release of India’s Manufacturing PMI (Aug) data and GST collection numbers Weak GDP numbers  also kept gains checked. Yesterday, reversing the trend, the 50 stock barometer Nifty crossed downside mark placed near 11,400 and closed at 11,387, while Sensex, the 30 scrip index on BSE ended slightly above 38,600 mark, after hitting 40K earlier in the session.

Here’s a look at the updates of the market action on BSE and NSE today:

3. 49 PM: Market at close

Sensex and Nifty ended on a bullish note on Tuesday, led by buying pressure in media and auto stocks, amid positive global equities. Reversing trend from 2% fall yesterday, Sensex ended 272 points higher at 38,900 and Nifty gained 82 points higher at 11,470.

3. 37 PM: Market closing update

On market closing today, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,” The markets have closed well over the 11300 level – this is heartening. We need to get past 11600 on a closing basis to indicate that the uptrend has resumed again. If we are successful in doing that, 11800-12000 could be the next potential target for the Nifty. The support is at 11300.”

3. 22 PM: Market Outlook

Expressing views by  S Ranganathan, Head of Research at LKP Securities said, “Markets ended in the Green after an extremely volatile session on the back of the SC Judgement on the AGR dues, New Margin Norms kicking in from today and the reaction to the Q1 GDP numbers. Telecom & Metals led the rally on the indices with support of select Financials. Bargain Hunting was witnessed in several Midcap names as stock prices became attractive post the fall yesterday”.

2. 59 PM: SIP update

Investing in mutual funds using a systematic investment plan or SIP is quite common. But, of late, SIPs in individual stocks have gained popularity, which allow investors to gradually build positions in their preferred stocks if they don’t have a lump sum amount to invest.

Moreover, with periodic investments, one can reduce the volatility risk, also keeping emotions at bay that may make one stay away from equities when one should especially nibble into them. For example, not many dared to invest in stocks during the COVID-19-led market crash in March, although benchmark indices have gained over 50 per cent since then.

BT Insight: What does SIPs in stocks mean and how it helps in wealth creation

2. 46 PM: Core sector update

Commenting on Core Sectors,  Jyoti Roy , DVP- Equity Strategist, Angel Broking said,”Core sectors reposted a contraction 9.6% for the month of July 2020 as against a contraction of 12.9% in June 2020. Steel, refinery product and cement contracted by the most amongst the eight sectors and were down by 16.5%, 13.9% and 13.5% respectively. Natural gas, coal, crude oil and electricity production declined by 10.2%, 5.7%, 4.9% and 2.3% respectively. The fertilizer sector continued to report strong growth on the back of a buoyant rural economy with output growing by 6.9% in August 2020.”

She added,”Despite the contraction in July numbers have been steadily improving since April when the core sector had contracted by 37.9% in April. We believe that core sector growth numbers will continue to improve gradually from here with the economy being opened up further and supply chain issues getting resolved.”

2. 34 PM: Market update

Sensex and Nifty traded on a bullish note on Tuesday, led by buying pressure in media and auto stocks, amid positive global equities. Reversing trend from 2% fall yesterday, Sensex was trading 272 points higher at 38,900 and Nifty was trading 108 points higher at 11,496.

2. 25 PM: Ashok Leyland sales update

Commenting on Ashok Leyland ‘s monthly sales, Keshav Lahoti, Associate Equity Analyst, Angel Broking said,”Ashok Leyland August sales were down by 31% YoY to 6,325 units. As expected MHCV sales continued to struggle and were down by 52% YoY to 2,589 units. LCV sales performed much better and were down by 4% YoY to 3,736 units. While we expect LCV sales will improve further over the next couple of months MHCV sales will take longer time to recover. We expect MHCV sales to normalize only by Q4FY21. The MHCV space is the least preferred space in the auto sector and we continue to maintain our neutral stance on the MHCV space.”

2. 13 PM:Maruti Suzuki sales outlook

Commenting on Maruti’s monthly sales,  Jyoti Roy , DVP- Equity Strategist, Angel Broking said,”Maruti Suzuki reported better than expected sales numbers for the month of August 2020. Domestic sales for the month of August was up  by 17.1% yoy to 1,24,624 units. Domestic sales for the month was up by 21.7% to 115,325 units while exports were down by 15.3% YoY to 7,920 units. We expect the company to continue posting strong growth numbers over the next couple of months due to pent up demand along with inventory push before the festive season. Low base of last year will also help growth numbers.”

2.02 PM:M&M sales update

Commenting on M&M’s monthly sales, Jyoti Roy , DVP- Equity Strategist, Angel Broking said,”M&M reported a 16% YoY contraction in automotive sales for August 2020 to 30,426 units. Domestic sales were down by 13% YoY to 29,257 units while exports were down by 54% YoY to 1,169 units. PV sales were up by 1% YoY to 13,651 units while CV sales were up by 4% YoY to 15,299 units led by strong growth in the LCV segment. Three wheeler sales were down by 94% YoY 307 units. The August numbers  are a significant improvement over June and July numbers and we expect sales numbers to improve further in September and October led by pent up demand especially from rural areas and inventory push prior to the festive season.”

1. 54 PM: Biocon share price nearly 7%

Biocon shares rose almost  7% in early trade on Tuesday after the pharmaceutical firm said it has launched a diabetes drug Semglee (insulin glargine injection) in the US market.

The drug helps control high blood sugar in adults and children with type 1 and type 2 diabetes, the company said a regulatory filing on BSE.

1. 46 PM: Oil prices today

Oil price moved higher after the recent selloff post Huricane Laura as producers continued to put more efforts to restore operations. Brent crude futures, the global oil benchmark, rose 1.08 per cent to USD 45.77 per barrel.

1. 30 PM:Escorts sales update

Commenting on monthly sales by Escorts, Jyoti Roy, DVP- Equity Strategist, Angel Broking said,”Escorts Ltd. has reported better than expected tractor sales for the month of August 2020. Domestic tractor sales were up by 79.4% YoY to 6750 units while exports were up by 90.4% YoY to 518 units. Overall total sales were up by 80.1% YoY to 7268 units. The better than expected set of numbers were on the back of good rural demand. We continue to remain positive on the tractor segment as we expect strong demand to remain strong in FY21.”

1. 22PM: Telcom stocks mixed

Bharti Airtel share price rose over 6% today after the Supreme Court allowed telcos 10 years to make staggered payment of the pending AGR dues. Share price of Bharti Airtel gained 6.37% to Rs 546.7 against previous close of Rs 513.95.

The apex court said telecom companies have to pay 10 per cent of total pending dues upfront and can’t default on the annual payments.

However, stock of another telco Vodafone Idea slipped 24.53% to Rs 7.69 on BSE. The firm expected period of staggered payments of 15 or 20 years for payment of dues.

1. 18 PM: SC announcement on AGR hearing

The Supreme Court ruled 10-year timeline for payment of AGR dues will begin from April 1, 2021. The apex court added that the default in payments would invite interest, penalty, along with contempt of court.

As per the verdict, the respective telecom company chairmen will have to give an undertaking and those defaulting on payments will face penalty and contempt of court. The SC has also fixed February 7 as the date for annual instalment.

1.09 PM: Rupee rises 53 paise to 73.07 per dollar

Indian rupee, the local currency strengthened 53 paise to 73.07 per dollar on Tuesday’s in opening deals, supported by weak American currency and positive domestic equities.

The domestic unit opened at 73.18 per dollar at the interbank forex market, and gained further ground to touch 73.07, registering a rise of 53 paise over its previous close of 73.60 against the US dollar.

12. 57 PM: PMI data

India August Manufacturing PMI stood at 52 MoM versus 46 in July. Manufacturing PMI signalled growth for first time in five months

12. 48 PM: Market gains momentum

Sensex and Nifty gained further by the afternoon session on Tuesday, led by buying pressure in media and auto stocks, amid positive global equities. Reversing trend from 2% fall yesterday, Sensex was trading 438 points higher at 39,006 and Nifty was trading 103 points higher at 11,491.

12. 34 PM: AGR verdict update

Commenting on AGR Verdict and the impact on the stock market, Dr. V K Vijaya Kumar, Chief Investment Strategist at Geojit Financial Services said,”The SC verdict giving a ten year time frame for payment of AGR dues with 10 percent upfront payment can be regarded as reasonably fair. Since the SC has not said anything about the dues of R Com, Aircel and Vodafone, this is certainly very positive for Reliance Jio and Bharti Airtel.  However, the 10-year time frame puts a question mark on the survival of Vodafone. Indian telecom industry moving to a virtual duopoly is not a desirable development.

For the stock market the verdict is mixed. Since it is positive for Bharti and RIL these two heavy weight stocks are likely to remain resilient, supporting the markets. Vodafone’s woes, apart from impacting the stock, will also impact the stocks of banks which have lent to Videocon.”

12. 25 PM: GDP numbers update

Expressing views on the GDP numbers, Deepthi Mary Mathew, Economist at Geojit Financial Services said,”Indian GDP growth rate contracting by 23 percent was more or less expected. The economy was in a complete lockdown for nearly two months, and all the high-frequency indicators were pointing towards the fact that the country was heading towards one of the worst contractions. Investment growth has been in the negative territory for the last three quarters, and the pandemic induced crisis has only worsened the situation. Considering the uncertain economic scenario, investment growth would continue to be in the negative territory in the coming quarters.”

12. 19 AM: Dollar index

Dollar fell today after US Federal Reserve’s new policy framework suggested that interest rates would remain low for some time. The dollar index continued downward momentum and slipped to multi-year lows against the basket of Asian currencies.

11. 55 AM: L&T share rises 2%

Larsen & Toubro (L&T) share price rose in early trade today after the engineering and construction firm said it has completed the strategic divestment of its electrical and automation business to Schneider Electric. The large cap share climbed 2.18% to Rs 965.95 against previous close of Rs 945.30 on BSE.

11. 44 AM: Gold futures outlook

As per Geojit Financial Services, immediate and stiff resistance is seen at $1980 which needs to be cleared for continuation for further rallies.

For MCX Gold August, resistance is placed at 52,120 and support is at 49,960. For MCX Silver August futures, resistance is at 71,250 and the support is placed at 65,800.

11. 31 AM: Coronavirus toll

Worldwide, there were 256 lakh confirmed cases and 8.54 lakh deaths from COVID-19 outbreak. Meanwhile, India reported 78,512 new COVID-19 infections, taking the death toll to 64,617 and total coronavirus cases to 36.21 lakh as of Monday.

11. 27 AM: Stocks in news

Biocon, Morepen Labs, Edelweiss, L&T, Bharat Dynamics among others are the top stocks to watch out for in Tuesday’s trading session.

11. 10 AM: AGR Verdict quote

Commenting on the AGR Verdict, Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking said, “Today the supreme court to give verdict related to repayment of adjusted gross revenue (AGR) dues by telecom companies. The key three-point will be covered are a) time frame for the staggered repayment of AGR dues by telcos b) can spectrum be transferred or sold under IBC and c) Past due of R.comm, Videocon, and Aircel. If Supreme court allows staggered payment of AGR dues for 15 years what Bharti and Vodafone Idea has requested from the court. Then it will be positive for banks which has exposure to Vodafone Idea. Indusind Bank and IDFC first Bank have the highest exposure in terms of percentage to net worth. Hence any positive outcome will be positive for select bank and clear beneficial would be IDFC first bank and Indusind bank.”

10.56 AM: Gold MCX

Gold price in Indian as well as international commodity markets gained for the third consecutive session on Tuesday, as dollar weakened. Prices of gold and silver gained as Fed’s new policy signalled that interest rates would remain low for some time.

On the Multi-Commodity Exchange, Gold October Futures rose by Rs 358 at Rs 52,059, after hitting an intraday high of Rs 52,100 against the previous close of Rs 51,710 per 10 gm. MCX gold futures currently trade almost Rs 4,481 lower than the lifetime high of Rs 56,191 per 10 gm, hit on August 7.

10. 40 AM: GDP data

Commenting on GDP result, Jyoti Roy , DVP- Equity Strategist, Angel Broking said, “The Q1FY21 GDP growth numbers have come in below consensus estimates at -23.9% YoY. The contraction was led by the manufacturing sector which degrew by 39.3% while the services sector registered a degrowth of 20.6% YoY. Agriculture as expected did well and posted a growth of 3.4% YoY for Q1FY21.”

He added,” While the contraction in GDP for Q1FY21 was more than consensus estimates, we believe that it has already been factored in to some extent as we are at the end of Q1FY21 result season.

While the GDP numbers in itself would not have had an adverse impact on markets, we believe that the proposed SEBI changes to margins and pledging which kicks in from tomorrow will continue to put pressure on markets. Markets will also take cues from the auto sales and PMI numbers for August which start flowing in from tomorrow.”

10. 32 AM: Market update

Traders said the market was trading volatile today, as investors eyed on announcements from Supreme court hearing for AGR and Interest waiver case as well as on loan moratorium. Investors were also awaiting release of India’s Manufacturing PMI (Aug) data. Weak GDP numbers  also kept gains checked.

10. 29 AM: Top gainers and losers

Eicher Motors, NTPC, Nestle, Power Grid and Bajaj Finserv were leading as top gainers. On the other hand, TCS, Maruti, ITC, Nestle, Infosys, Wipro, HCL Tech, Sun Pharma,  were among the top losers today.

10.12 AM: Market outlook

Commenting on markets today, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,”The markets have held the dicey level of 11300 quite smartly. We need to hold this level so that bearish sentiments do not get triggered. As long as 11300 hold on a closing basis, we have nothing to worry about – the uptrend continues. In order for an impulse to commence on the upside, we must go past 11600 on a closing basis.”

10. 04 AM: GDP figures

Commenting on GPD numbers, Arun Singh, Global Chief Economist Dun & Bradstreet said,”The contraction of GDP was expected. Further, in July 2020, the energy requirement for the top 7 states, with highest number of confirmed cases, except for UP, remained far below their 3-year average level, indicating the subdued pace of economic activity in Q2 FY21 as well. Without a reduction in the number of cases, the festivities, which usually lends a buoyancy to the growth momentum, will also remain subdued. This will pull down overall growth. Constrained government finances, contraction in investment activity, probable defaults both at firm and consumer level, and bankruptcies will continue to be a drag on GDP growth in FY21,”

9.55 AM: Nifty Outlook

As per Grojit Financials, the derivative set up is less vulnerable now, and as Nifty closed near our turnaround point of 11400, despite a breach yesterday, the day should open with hopes of an upswing. However, 11550 is likely to challenge such attempts, and one could look for a close above 11630 before adding longs. Until then, threats of a collapse to 10500 will remain alive, but for now, it is a low probability event.

9. 40 AM: Global markets

Asian markets were trading mixed as investors await Chinese manufacturing activity data for August. US markets and European markets had closed lower as market participants took cues from corporate news and dovish signals from US monetary policy.

9. 30 AM: GDP data

India’s GDP contracted 23.9% in Q1 June 2020 compared to the same period last year, showed official data released by the National Statistics Office (NSO) on Monday, mainly on account of limited economic activity in the country amid lockdowns to control the spread of the coronavirus pandemic. The economy expanded 3.1% year-on-year in the March quarter.

9. 21 AM: Opening session

Sensex and Nifty opened higher on Tuesday, amid mixed global equities. Where Sensex was trading 168 points higher at 38,796 and Nifty was trading 66 points higher at 11,453.

9. 13 AM: Global markets

Overseas, Asian stocks are trading mixed Tuesday amid bleack PMI and manufacturing data overseas. Where Chinese manufacturing activity in August expanded at its fastest pace in nearly 10 years, Japan’s factory activity contracted at the slowest pace in six months in August. Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) came in at 53.1 for August, compared to 52.8 in July.

Wall Street stocks also closed mixed on Monday as declines in bank stocks pressured both the Dow and S&P 500

9.09 AM: FII action

Foreign portfolio investors (FPIs) sold shares worth Rs 3,395.49 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 680.88 crore in the Indian equity market on 31 August, provisional data showed.

9.00 AM: Market outlook

“Technically, a decline below 11,300 in Nifty would reverse the short term uptrend. In case of a rebound, it would find it difficult to cross 11500-11550 zone. We suggest using rebound to reduce longs positions and adding few shorts through options trades,” said Ajit Mishra, VP – Research, Religare Broking.

8. 50 AM: Nifty outlook

Markets fell heavily on news based movements yesterday. On the technical front, the 50 stock barometer Nifty crossed downside mark placed near 11,400 and closed at 11,387, while Sensex, the 30 scrip index on BSE ended slightly above 38,600 mark, after hitting 40K earlier in the session.

8. 45 AM: Auto stocks in focus today

Stocks of auto companies like Maruti Suzuki, Tata Motors, M&M, Bajaj Auto & Hero MotoCorp will be under investors’ radar today as sales numbers for August are due on Tuesday.

8. 40 AM: Closing yesterday

Sensex and Nifty erased most gains of last week and ended 2.1% lower each on Monday, due to panic selling on a fresh round of border tensions with China. Reversing the trend, Sensex ended 839 points lower at 38,628, while Nifty lost 260 points to 11,387 after six sessions of straight gains. Investors lost Rs 4.5 lakh crore on BSE after the Indian Army said Chinese troops violated the previous consensus arrived at during military and diplomatic engagements amid the ongoing standoff in Eastern Ladakh on August 29 and 30. ONGC and TCS were the only gainers, while Sun Pharma, ICICI BankKotak Bank and Bajaj Finserv were the top Sensex losers falling up to 6%.

8. 30 AM: Technical insights

Vinod Nair, Head of Research at Geojit Financial Services said, “With increased geopolitical tensions, markets also traded uncertainty and this could impact the market behaviour in the coming days. Investors are advised to remain cautious.”

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