Share Market Highlights: Sensex ends 258 points higher, Nifty at 11,604; Dr Reddy, Britannia top gainers

Sensex, Nifty Highlights on September 16: Sensex and Nifty closed on a bullish note on Wednesday, amid positive global equities. Extending gains for the second straight session, the 30-scrip BSE benchmark Sensex ended 258 points higher at 39,302 and NSE Nifty 50 closed 82 points higher at 11,604.  Shares retreated in Asia on Wednesday ahead of the Federal Reserve's policy announcement. Yesterday, the 30-scrip BSE benchmark Sensex ended 287 points higher at 39,044 and NSE Nifty 50 closed 81 points to 11,521.

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

3. 45 PM: Market at close

Sensex and Nifty closed on a bullish note on Wednesday, amid positive global equities. Extending gains for the second straight session, the 30-scrip BSE benchmark Sensex ended 258 points higher at 39,302 and NSE Nifty 50 closed 82 points higher at 11,604. 

3. 36 PM: Va Tech Wabag climbs

Va Tech Wabag rose over 5% after the company reported Q1 earnings. Its consolidated net profit surged 687.5% to Rs 5.04 crore in quarter ended June 30, as compared to Q1FY20, when it had reported Rs 0.64 crore.

Following the result updates, Va Tech Wabag Stock touched an intraday high of Rs 219.9, rising 5.59% against its last close of Rs 208.25. The stock also touched an intraday low of Rs 208.30, also its opening price for the session.

3. 14 PM: Market rises further

Sensex and Nifty traded on a bullish note on Wednesday, amid positive global equities. Extending gains for the second straight session, the 30-scrip BSE benchmark Sensex traded 250 points higher at 39,294 and NSE Nifty 50 was trading 86 points higher at 11,608.

3.05 PM: FOMC meet

"The focus will be on the Federal Open Market Committee (FOMC) tonight. Market participants would expect further clarifications from the US Fed on how average inflation-targeting framework would be implemented," said Abhishek Goenka Founder and CEO, IFA Global.

Goenka further said that "the threshold for the US dollar to weaken from current levels is high as a lot of dovishness has already been factored in. One possible trigger could be the Fed predicating keeping rates at close to zero on inflation expectations reaching a certain level".

2. 46 PM: Market rises further

Sensex and Nifty traded on a bullish note on Wednesday, amid positive global equities. Extending gains for the second straight session, the 30-scrip BSE benchmark Sensex traded 138 points higher at 39,138 and NSE Nifty 50 was trading 45 points higher at 11,567.

2. 34 PM: Oil prices today

Brent Crude futures, the global oil benchmark, rose 1.48 per cent to USD 41.13 per barrel. Oil price rose backed by supply disruption in the US due to hurricane. However, the overall sentiment still remained a concern as participants expect a slow recovery in demand.

2. 28 PM: Rajesh Exports share price rises over 2% post Q1 earnings

Shares of gold refiner Rajesh Exports climbed over 2% in early trade on Wednesday after the company reported its Q1 earnings.

Rajesh Exports stock earlier opened at Rs 468.50 and touched an intraday high of Rs 470, rising 2.19% as against its last close of Rs 459.95. Although later, the stock erased early gains and traded 1% lower at Rs 455.35. On Tuesday, shares of Rajesh Exports closed 0.01 per cent lower at Rs 459.90 apiece on BSE.

2. 12 PM: RIL scales market capitalisation of Rs 16 lakh crore

Reliance Industries Limited (RIL) became the first Indian firm to hit market cap of Rs 16 lakh crore in early trade today. The stock achieved the feat after it hit all-time high of Rs 2,368 in an otherwise flat market. Share price of RIL gained 2.2% to Rs 2,368 against previous close of Rs 2,317 on BSE.

The large cap stock has gained 1.57% in last two days. This is the first session that market cap of RIL crossed Rs 16 lakh crore making it the most valuable company on Indian bourses.

Reliance Industries scales market capitalisation of Rs 16 lakh crore for first time

2. 01 PM: Rupee trades flat at Rs 73.64

The rupee traded in a narrow range at 73.64 per dollar on Wednesday, ahead of the US Federal Reserve's policy decision, despite positive domestic equities and foreign fund inflows.

The local unit opened at 73.70 at the interbank forex market, falling 7 paise over its last close, but soon pared the losses and was trading at 73.64, unchanged from its previous closing.

Rupee trades flat at Rs 73.64 per dollar ahead of US Fed meet outcome

1. 56 PM: Real estate sector update

Speaking on outlook for real estate sector, Pradeep Aggarwal, Founder & Chairman-Signature Global Group & Chairman - ASSOCHAM National Council on Real Estate, Housing and Urban Development said, "Affordable housing in real estate continues to be the most attractive segment for end-users. It registered 44% of the total residential sales, made during April-June quarter in eight prime residential markets of India. Moreover, the pandemic has reinforced home ownership as the most valuable asset in current times. This has led to homebuyers becoming more selective and conscious about their living conditions. With the government's support via subsidies and low home loan interest rates, the influx of end-users returning to the market has significantly increased. Developers are also ensuring to provide essential amenities within the project premises, and maintaining a strong digital presence for effective communication with the class of new-age buyers".

1. 43 PM: RBI Governor Shaktikanta Das defends loan restructuring scheme

RBI Governor Shaktikanta Das today invoked the 'depositor interest' and 'financial stability'  while defending the new time bound loan restructuring scheme for select 26 Covid impacted sectors with the pre-defined threshold of financial ratios for resolution. Outlining the whole rationale and reasoning behind the restructuring scheme, the RBI Governor Das said "it has to be a very balanced and careful call on the part of the RBI." He said that the primary concern of any banking system has to be the protection of depositors interest.

The Governor also highlighted that the aspect of financial stability which has to be kept in mind. "We don't want a repeat of the earlier situation of high NPAs," said Governor. The banking system is actually yet to recover from the loan extended in the boom period of late 2000 decade.

RBI Governor Shaktikanta Das bats for small depositors, defends loan restructuring scheme

1. 32 PM: Coronavirus toll

Worldwide, there were 297.27 lakh confirmed cases and 9.39 lakh deaths from COVID-19 outbreak. Meanwhile, India's death toll from COVID-19 infections rose to 82,091 and total coronavirus cases climbed to 50.20 lakh as of Wednesday.

1. 20 PM: Top gainers and losers

M&M, followed by Bajaj Auto, Maruti, L&T, Tata Steel, UltraTech Cement and Nestle India were among the top gainers on Sensex pack today. On the other hand, HCL Tech, Axis Bank, ICICI Bank, Bajaj Finance and SBI were among the laggards.

1. 12 PM: Chemcon Chemicals IPO

As the stock market has recovered well from lows in March'20 and post multifold  bids for Route Mobile and Happiest Minds IPO, we will see many IPO launching in the remaining part of the year.  On September 21, two IPO issues will open: Chemcon Speciality Chemicals and Computer Age Management Services.  

Commenting on Chemcon Chemicals IPO, Keshav Lahoti - Associate Equity Analyst, Angel Broking said,"Chemcon is a manufacturer of specialised chemicals, such as HMDS and CMIC which are predominantly used in the pharmaceuticals industry and inorganic bromides which are predominantly used as completion fluids in the oilfields industry. Company supply  products to domestic customers and also export products. In Fiscals 2020, 2019 and 2018, their revenue from exports (including Deemed Exports) contributed 39.78%, 31.99% and 47.84% respectively of revenue from operations. "

He added," Objects of the issue are capital expenditure, working capital requirements and general corporate purpose expense. Fresh issue would be of up to Rs.165 cr and offer for sale would be up to 45 lakh shares. Issue dates are September 21 - September 23. Intensive and Ambit are book running lead managers."

12. 52 PM: SpiceJet Q1 update

Commenting on SpiceJet Q1 earnings,  Jyoti Roy - DVP- Equity Strategist, Angel Broking said," Spicejet reported a net loss for Q1FY21 of Rs. 593.4 crore as compared to a profit of Rs. 261.7 crore in Q1FY20. During the quarter revenues were down sharply by 83% YoY to Rs. 514.7 crore.  Company posted an EBITDAR loss of Rs. 166.5 crore for the quarter as compared to profit of 684.2 crore in Q1FY20 despite cost control. Total operating costs for the quarter excluding lease rentals were down by 70.6% YoY to Rs. 681.2 crore. During the quarter the company maintained its 16% market share with a load factor of 66% despite the Covid-19 impact which resulted in 90% YoY contraction in ASKM. During the quarter the company increased its focus on cargo as a result of which revenues from cargo increased by 144% YoY to Rs. 165.9 crore while air transport service registered a degrowth of 88% YoY to Rs. 348.8 crore. The numbers were along expected lines as it was expected that the company would post a loss in Q1FY21 given sharp fall in air traffic."

12. 48 PM: Trade deficit outlook

Commenting on India's trade deficit, Jyoti Roy - DVP- Equity Strategist, Angel Broking said,'The economic slowdown and sharp fall in fuel prices due to Covid-19 has led to compression of India merchandise trade deficit which coupled with strong FPI flows have led to a strengthening bias on the rupee. In order to counter an appreciating rupee the RBI has been intervening in the forex market which is reflected in India's foreign exchange reserves which has hit all time highs of USD 542bn as on the 4th of September. While we expect the trade deficit to increase going forward we expect overall BoP to remain in the surplus barring any unforeseen event which will put pressure on the USD relative to the INR. In order to counter the appreciating bias we expect continued intervention by the RBI in the forex market as the Government and the RBI would not want the rupee to appreciate significantly from current levels though may tolerate some amount of appreciation."

12. 34 PM: Global markets

Asian markets are trading mixed as investors await FOMC meeting outcome later in the day. Japan's exports fell 14.8% in August Vs a year ago.

U.S. markets closed higher on the back of broad market gains and positive economic data ahead of FOMC meeting outcome. However, banking stocks struggled. European markets had closed higher as investors focused on upcoming FOMC, Boj and BoE meeting outcomes. Retail stocks gained while banks finished in red.

12. 20 PM: Commodity prices

Oil price rose backed by supply disruption in US due to hurricane. However, overall sentiment still remained a concern as participants expect slow recovery in demand.

Gold price moved lower as dollar rose but expectation of dovish monetary policy outcome later in the day limited the losses.

12.09 PM: Gold, Silver prices in India on September 16

Gold prices held steady on Wednesday for the third straight session amid weak dollar as investors awaited outcome of the FOMC meeting, hoping that Fed policymakers would maintain a dovish policy.

On the Multi Commodity Exchange, Gold October Futures gained Rs 166 at Rs 51,935, after hitting an intraday high of Rs 51,943 against the previous close of Rs 51,769 per 10 gm. Silver September Futures, gained Rs 108 to Rs 69,075 per kg today after they touched an intraday high of Rs 69,105 per kg.

Gold price rises for third day; silver rates at Rs 69,100

11. 54 AM: Market Update

Market indices erased early gains and traded marginally higher, tracking mixed cues from overeas as investors awited outcome from Fed-policy meet, scheduled today.

11. 34 AM: CAMS IPO

The much-awaited initial public offer (IPO) of Computer Age Management Services (CAMS), the registrar and transfer agent of mutual funds, will open on September 21. The share sale, which will end on September 23, will be priced between Rs 1229-Rs 1230.

One can apply in the CAMS IPO with a lot size of 12 shares for Rs 14,760. Maximum 13 lots comprising 156 shares can be allotted to an individual for Rs 191,880.

The allotment of shares will be done on September 28 and initiation of refunds will be carried out on September 29.

11. 12 AM: CAMS IPO outlook

Computer Age Management Services (CAMS), a financial services and infrastructure provider, is set to launch its initial public offering (IPO) on September 21, 2020. The IPO will open on September 21 and close on September 23.

Commentign on IPO, Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said,"The company is India's largest registrar and transfer agent of mutual funds with an aggregate market share of approximately 70 percent based on mutual fund average assets under management. CAMS charge a percentage of AUM to AMC and charges more fees from equity mutual funds as compared to other categories of mutual funds. Change in the mix of the Mutual fund industry towards higher equity and the buoyant market will be beneficial for CAMS revenue growth. Great Terrain is an affiliate of Warburg Pincus holds 43.8%, NSE Investment Hods 37.7%. However, through IPO NSE investment is selling an entire stake. HDFC group holds 12.6%. CAMS business model is asset-light, Hence, earnings are generously distributed among shareholders. It reports RoE of more than 25%. Considering a healthy balance sheet, high return ratio, and market leadership position, IPO will see strong interest across market participants."

11. 01 AM: Liberty shoes Q1 earnings

Commenting on Liberty Shoes 1QFY21 Resul  Amarjeet Maurya - AVP - Mid Caps, Angel Broking said, "For 1QFY21, Liberty shoes (LSL)'s top-line declined by ~70% yoy to Rs51cr. Top-line was negatively impacted mainly due COVID-19 lockdown. On the operating front, the company reported profit of ~Rs0.7cr (against profit of ~Rs10cr in 1QFY20) due to negative impact of operating leverage. On the bottom-line front, LSL reported loss of ~Rs11cr (against profit of ~Rs2cr in 1QFY20) due to lower sales."

10. 54 AM: Crude oil outlook

Commenting on Crude oil outlook, Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said, "Yesterday MCX Crude oil prices sharply increases by 2.91% and closed at 2828 levels and WTI crude oil prices were also increased by 3.03% and closed at $38.39 per barrel. This sharply rally due to Hurricane Sally. Hurricane Sally is set to make landfall along the gulf coast, the major hub for oil refineries in the US.  Around 147 offshore platforms were evacuated due to the hurricane.  U.S. crude oil inventories fell by 9.5 million barrels last week, although gasoline inventories increased, data from industry group the American Petroleum Institute showed on Tuesday. Currently WTI is trading at $38.92 per barrel and Brent crude oil is trading at $41.11 per barrel. Hurricane season, geopolitical tension and falling inventories  supports the crude oil prices in short term. So as of today we are recommending to buy in crude oil on a dip. Traders can go for buy in mcx crude oil at 2800 levels, with the stop loss of 2750, for the target of 2900 levels."

10. 47 AM:Rupee outlook

As per Geojit Financial Services, For USDINR, 73.83 and 74.05 may act as crucial levels in the upside while 73.48 and 73.25 will act as support levels.

10. 32 AM:Market update

Expressing views on markets today, -Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"We have moved a wee bit closer to the 11550 level this morning, we need to get past this for an impulsive rally to commence. Until then we will be stuck within a low volume range of 11400 - 11550. Once we cross the levels of 11550-11575, we can look forward to 11800 and then 12000."

10. 29 AM: Gold outlook

Commenting on gold's technical indicators, Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said, " Due to weakness in dollar we are expecting positive trend may continue in gold and silver. As for today traders can go for buy in gold at Rs 51,700 levels with the stop loss of Rs 51,400 levels for the target of 52,300 levels. They can also go for buy in Silver  at Rs 68,600 levels, with the stop loss of 68,000 levels and for the target of 69,800 levels. In the Bullion index Bulldex traders can also go for buy at 16200 with the stop loss of 16050 and for the target of 16600. In international market gold may test $2000  per ounce and silver may test $ 28.50 per ounce soon."

10. 14 AM: Nifty outlook

 Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said,"For Nifty, if 11570 is taken out, we would see some extension towards 11625-11675 levels and if this has to happen, the banking stocks needs to replicate yesterday's move. On the flipside, 11450 followed by 11380 are to be seen as key supports. Yesterday for the second day, stocks from the broader market kept buzzing.

10.00 AM: India's exports and imports

India's exports slipped 12.66% to $22.7 billion in August, on account of decline in the shipments of petroleum, leather, engineering goods and gems and jewellery items, according to the government data released on 15 September 2020. The country's imports too declined 26% to $29.47 billion in August, leaving a trade deficit of $6.77 billion, compared to a shortfall of $13.86 billion in the same month last year, as per the data.

9. 56 PM: Market outlook

As per Relaince Securites, NSE-NIFTY regained 11,500 mark and rose to 8-day closing high. The index closed above its 20-day EMA for straight fourth trading session in a row. Its key technical indicators remained in neutral mode hence our cautious view will remain intact for the index. Any sustainable move above its near-term hurdle point (11,584 level) will strength the index towards 11,794 mark. However in case of decline, the index will initially find support at 11,111 mark and then at 10,787 level, which coincides with its recent swing low and its 200-day SMA, respectively.  

As for the day, support is placed at around 11,464 and then at 11,406 levels, while resistance is observed at 11,558 and then at 11,594 levels.

9. 41 AM: Global markets today

Asian markets were trading mixed today, while US markets closed in the green. Experts said market participants also awaited outcome from the Federal Reserve concluding its two-day policy meeting on Wednesday. The Federal Open Market Committee will give its quarterly update on where it sees GDP, unemployment and inflation going.

Increase in U.S. factory production and data that showed China's industrial output and retail sales picked up kept markets optmistic on Tuesday.

9. 30 AM: Market outlook

Expressing views on the week ahead, Religare Broking in its note said,"Investors will watch for Federal Reserve announcements on September 16 after the two-day FOMC meeting, where it is expected that the US Fed will adopt a dovish stance. Also, market participants would wait for the BOJ and the BOE's policy decisions, due on Thursday. In the US economic calendar, industrial data and retail sales data will be watched in the first half, while housing data, weekly jobless claims and consumer sentiments data will be on the radar in later part of the week."

9. 20 AM: Opening session

Sensex and Nifty opened on a bullish note on Wednesday, extending yesterday's gains amid mixed global equities. The 30-scrip BSE benchmark Sensex traded 50 points higher at 39,095 and NSE Nifty 50  was trading 12 points higher at 11,543.

9. 10 AM: CAMS IPO to open on September 21; NSE to sale its 37% stake via public offering

Computer Age Management Services (CAMS), the registrar and transfer agent of mutual funds, will launch its initial public offering (IPO) on September 21, 2020. The booking for anchor investors will open for a day on September 18, while for retail investors it will open on September 21 and close on September 23. The equity shares of CAMS will be listed on the BSE.

CAMS IPO to open on September 21; NSE to sale its 37% stake via public offering

9. 00 AM: Market outlook

Vinod Nair, Head of Research at Geojit Financial Services said,"Indian benchmark indices gave up its gains and closed with a negative bias. IT stocks outperformed following a strong showing by HCL tech, which benefited most IT stock prices. However, the broader markets outperformed, especially the smallcap index, after SEBI tweaked MF norms for multi-cap funds. This SEBI measure would require more exposure to small cap stocks in most multi-cap funds, leading to the current buying interest. Global cues were also mostly positive on renewed vaccine optimism. Inspite of all the optimism, a correction due to valuations or various uncertainties cannot be ruled out and volatility is expected to continue. Trade cautiously and look at earnings stability, if investing for the long-term in Smallcaps".

8. 50 AM: FII action

Foreign portfolio investors (FPIs) bought shares worth Rs 1,170.89 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 895.63 crore in the Indian equity market on 15 September, provisional data showed.

8. 40 AM: Rupee closing

In the forex market, India rupee, the currency benchmark tumbled 16 paise to close at 73.64 against the US dollar.

8. 30 AM: Closing yesterday

Sensex and Nifty closed higher on Tuesday amid positive global equities and sustained foreign fund inflows. Tracking gains in index majors HDFC twins, ICICI Bank and Reliance Industries, the 30-scrip BSE benchmark Sensex ended 287 points higher at 39,044 and NSE Nifty 50 closed 81 points to 11,521.

Sensex ends 287 points higher, Nifty at 11,521; pharma, banking stocks lead gains