Share Market Highlights: Sensex ends 51 points lower, Nifty at 11,317; Bharti Airtel, Infratel top losers

Sensex, Nifty Highlights on September 8: Sensex and Nifty reversed trend and closed marginally lower on Tuesday, amid mixed global equities. Sensex ended 51 points lower at 38,365 and Nifty fell 37 points to 11,317. Meanwhile, April-June quarterly earnings announcements by Future Consumer, Jindal Stainless, CESC, Dishman Carbogen Amcis, SML Isuzu, Spencer's Retail, Mafatlal Industries, Bal Pharma, Sharon Bio-Medicine will also set the tone for the stock market today. Yesterday, Sensex ended 60 points higher at 38,417 and Nifty gained 27 points to 11,325.

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

3. 45 PM: Closing session

Sensex and Nifty reversed trend and closed marginally on Tuesday, amid mixed global equities. Sensex ended 51 points lower at 38,365 and Nifty fell 37 points to 11,317.

3. 34 PM: Global markets

Asian markets were trading higher as Japan released revised GDP figures for Q2 at an annualised 28.1%.

U.S. markets were closed on account of Labor Day holiday. Dow & S&P500 futures were trading positive.

European markets had closed higher bouncing back from the recent fall triggered by selling in tech shares.

3. 25 PM: Happiest Minds Technologies IPO

Commenting on Happiest Minds Technologies  IPO,  Nirali Shah, Senior Research Analyst, Samco Securities said," Firstly, the company carries a larger-than-industry-average level of debt on its books, indicated by a debt to equity ratio of 0.92. This includes high working capital liabilities and current liabilities to the tune of Rs 211 cr.  It plans to reduce this liability to an extent with the IPO funds but even then there will be a significant chunk of current liabilities on its books. Happiest Minds' operating cashflows to EBITDA has also declined from 2018 to now. To add to it, promoters have pledged 30% of their total shares to raise capital. All these negatives outweigh the fact that this IT company trades at a fair valuation of 23x P/E. Hence, investors should avoid this IPO since there are a number of red flags and the given uncertainty in the economy.   

3. 16 PM: Market turns muted

Sensex and Nifty reversed trend and fell marginally on Tuesday, amid mixed global equities. Sensex traded 12 points lower at 38,405 and Nifty fell 25 points to 11,329.

2. 49 PM: Reliance Industries update

Commenting on Reliance, Jyoti Roy - DVP- Equity Strategist, Angel Broking said," We also believe that the acquisition of future retail business by Reliance Industries Ltd. is a step in the right direction and will help the company further consolidate its position in the retail business and help it increase its leadership position in the retail space. We remain positive on Reliance industries Ltd. and expect that the digital and the retail business will be the future growth driver for the company while the O2C (Oil to Chemicals) business should also stage a recovery in FY2022 once demand normalizes. Strategic investment in the O2C business and the retail business will be key triggers for the company in the near future while listing of the digital and retail business over the next few years would also lead to significant value unlocking for shareholders in the long run. We continue to maintain our buy rating on reliance Industries with a target of Rs. 2,366."

2. 34 PM: Route Mobile IPO

On the upcoming IPO by Route Mobile, Keshav Lahoti - Associate Equity Analyst, Angel Broking said,"Route Mobile provides cloud-communication platform as a service ("CPaaS") to enterprises, over-the-top ("OTT") players and mobile network operators ("MNOs"). Company provides voice, email, and omni-channel communication, SMS analytics, firewall, filtering and monetization, SMS hubbing and Instant Virtual Number solutions.

There are no listed peers for the Company in India. Management has till now infused only 6 lakhs capital in the Company, and it will command a market cap of 1990 crores at the higher price band. This shows that it is a scalable business model, which can grow without capital infusion. Unlike many other businesses, Covid-19 has led to better growth prospects for the Company given increased adoption of digital technologies. At the upper end of the price band, Company demands PE multiple of 25.3x on F.Y.20 EPS, which we believe is quite reasonable considering the future prospects of the Company. As we are positive on the future outlook for the industry as well as the Company, we would recommend to "Subscribe" to the issue for long term as well as for listing gains."

2. 19 PM: Future Enterprises share falls 5%

Shares of Future Enterprises fell up to 5% today after the firm reported a consolidated net loss of Rs 394.77 crore in Q4 against a net profit of Rs 66.58 crore in the March quarter a year ago.  Future Enterprises share declined to intra day low of Rs 15.65 against previous close of Rs 16.45 on BSE.

Future Enterprises share falls 5% on Rs 395-crore Q4 loss

2.01 PM: Real estate sector update

peaking on outlook for real estate sector, Prateek Mittal, Executive Director, Sushma Group said, "The real estate sector's demand and supply is highly influenced by the ongoing social and economic situations. Large scale migration towards Tier II and Tier III cities and with no certainty of when will normalcy return, interest towards property buying has witnessed an upscale in small cities with well-planned projects and better infrastructure. We have registered an increase of around 150% in site visits as compared to pre-COVID times for the month of August at our projects. In northern India, realty market of Tricity has emerged as the most preferred destination for end-users. The properties available here have the advantage of strategic location, smooth connectivity with the capital region and well-planned civic structure."

1. 39 PM: Bharat Dynamics share slips over 13%

Bharat Dynamics share slipped over 13% in early trade today after the  government said it would sell 15% stake in the defence company through an offer for sale on September 8 and September 9. Share price of Bharat Dynamics fell 13.5% to Rs 332.60 against previous close of Rs 384.50 on BSE. The stock has lost 16.52% in 3 days. It opened with a loss of 12.07% at  Rs 338 today.

Bharat Dynamics share slips over 13% as govt selling stake via OFS

1. 25 PM: Market rises further

Sensex and Nifty traded on a bullish note on Tuesday, amid positive global equities. Sensex traded 265 points higher at 38,682 and Nifty gained 62 points to 11,417

1. 10 PM: Info Edge share price rises 4%

Info Edge share rose nearly 4% in trade today after the firm reported a 150% rise in net profit in the first quarter of previous fiscal. Info Edge stock has gained after 3 days of consecutive fall. The stock opened with a gain of 3.28% today. It touched an intraday high of Rs 3,419.85 , rising up to 3.89%.

Info Edge share price rises 4% on strong Q1 earnings

1.08 PM: Top gainers and losers

Reliance Industries, Sun Pharma, Infosys, Axis Bank and ICICI Bank were among the top gainers today. On the other hand, PowerGrid, followed by NTPC, Nestle India, ONGC, L&T, HDFC and M&M were the top losers.

12. 49 PM: Oil prices today

Oil price fell as Saudi Arabia made the deepest monthly price cuts for supply to Asia even as demand recovery expectation during the pandemic cooled. Brent crude futures, the global oil benchmark, fell 0.12 per cent to USD 41.96 per barrel.

12. 34 PM: Rupee falls 29 paise to 73.64 per dollar

Indian rupee depreciated 29 paise to 73.64 per dollar in Tuesday's opening deals amid rise in demand for the US currency from banks and importers.

The Indian currency started off on a tepid note at 73.63 at the interbank forex market, then fell further to 73.64 against the greenback, down 29 paise over its previous close of 73.35 against the US dollar. The local unit traded in a narrow band of 73.54-73.64 per US dollar in early trade.

Rupee falls 29 paise to 73.64 amid strong US dollar, foreign fund outflows

12. 13 PM: Moody's Investors downgrades few PSU banks

On Moody's Investors' downgrade for few PSU banks, Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said,"Moody's Investors Service on Friday downgraded the long-term local and foreign currency deposit ratings of Bank of Baroda, Bank of India, Canara Bank, and Union Bank of India to Ba1 from Baa3. The rating agency also downgraded Baseline Credit Assessments of all the four lenders to B1 from Ba3. Before the pandemic, PSU banks except for a few had asset quality issues and were reporting subdued ROE. Pandemic has further accentuated asset quality issues.

He added,"We expect credit cost for FY21 to remain elevate considering low economic activity and higher slippages from the moratorium book. We believe Bank of Baroda and Canara bank stock price to consolidate till investors get better clarity on slippage from Morat book. We have a positive view on the State bank of Inia from PSU banks and currently, all PSU banks are trading at a historically low valuation."

12.01 PM: Gold price slips after 3 days

Gold price eased on Tuesday as the dollar strengthened after three straight sessions of gains. Prices of gold and silver were trading a tad lower in Indian as well as international commodity markets on Tuesday, as investors turned cautious awaiting the outcome of the European Central Bank meeting this week.

On the Multi-Commodity Exchange, Gold October Futures traded  Rs 185 lower at Rs 50,880, after hitting an intraday low of Rs 50,746 against the previous close of Rs 51,065 per 10 gm. MCX gold futures currently trade almost Rs 5,126 lower than the lifetime high of Rs 56,191 per 10 gm, hit on August 7. On MCX, the yellow metal has risen 41.5% to life-time high since the beginning of the year.

11. 51 AM: Swaraj Engines stock generates 30% returns in the past 3 months

Commenting on Swaraj Engines, that is is engaged in the business of manufacturing diesel engines and hi-tech engine components, Amarjeet Maurya, AVP - Mid Caps, Angel Broking said, " Going forward, we expect strong growth numbers in the tractor industry primarily on account of continued positive sentiment in rural areas, due to increase in Kharif sowing area, thereby indicating a bumper harvest, bountiful monsoon, good rural cash flows and upcoming festive season. Hence, it will benefit the players like Swaraj Engines (CMP:- Rs1,680; TP:-Rs1,931)".

11. 34AM: Amber Enterprises India

Commenting on Amber Enterprises India, that is engaged in the business of Air Conditioners and Its Components, Amarjeet Maurya- AVP - Mid Caps, Angel Broking said," The company has launched QIP on 7 September 20 and floor price is Rs1,798.72 per share  (currently trading at Rs1,885 -10:22 am on 8 step 20). In our view, we expect the company will raise Rs300-400cr money for future working and capex requirement which is 5-7% of current share capital. We believe that increasing demand for contract manufacturing in India due to the 'Atma Nirbhar Bharat' initiative by the government. This is a positive move by the company to take advantage of the growing opportunity in India."

11. 12 AM: Repco Home finance result update

Repco Home finance, Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking said,"Repco Home finance reported subdue numbers for Q1FY21. AUM grew at 5.6% YoY an 1.3% QoQ which is below compared to past growth. Repco Home Finance Moratorium number is high compared to other housing finance companies.Repco home finance trading at 0.65x of TTM Book Value which is lower compared to historical valuation. Though Q1FY21, numbers are subdued, however, considering inexpensive valuation positive price momentum to continue. An investor will closely watch slippage and restructuring from the moratorium book in coming quarter, which will decide next trend of stock movement."

11.01 AM: Market update

Sensex and Nifty traded on a bullish note on Tuesday, amid positive global equities. Sensex traded 250 points higher at 38,668 and Nifty gained 72 points to 11,427.

10. 54 AM: Coronavirus toll

Worldwide, there were 274 lakh confirmed cases and 8.96 lakh deaths from COVID-19 outbreak. Meanwhile, India's death toll from COVID-19 infections rose to 72,816 and total coronavirus cases to 42.80 lakh as of Tuesday.

10. 35AM: Gold outlook

Commenting on gold's trend, Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking said," Yesterday, Gold prices increased by 0.76% and closed at Rs 51,065 levels. Silver prices also increased by 1.49% and closed at 68,271 levels.  In international market, spot gold is trading at  $1923 per ounce and silver is trading at $26.73 per ounce levels. Gold and silver is trading lower today on the back of  sharp recovery in US Dollar as investors weighed whether an accommodative turn from the European Central Bank later this week could hit the euro, while the pound nursed losses due to Brexit uncertainty.  

He added," As of today, traders can go for sell in gold at Rs 51,100 levels with the stop loss of Rs 51,450 levels for the target of 50,200 levels. They can also go for sell in Silver  at Rs 68,500 levels, with the stop loss of 69,900 levels and for the target of 65,000 levels. In the Bullion index Bulldex traders can also go for sell at 16000 with the stop loss of 16250 and for the target of 15700."

10. 22 AM: All Cargo Delisting

Yash Gupta - Equity Research Associate, Angel Broking said,"Allcargo Logistics Ltd board approves delisting proposal and set floor price at Rs 92.58, which is 18.8% discount to its current market price of Rs 114.15.Promoter and promoter group of the company will acquire all the fully paid-up equity shares of the company having a face value of Rs 2 held by the public shareholders of the Company. As per the last filling, the public holds 29.99% of paid-up equity share capital of the company. Delisting will be a positive development for the Company but the proposed delisting prices is not upto expectation of public shareholders."

10. 15AM: Global markets

Overseas, Asian stocks are mostly higher on Tuesday. In US, financial markets were shut on Monday for a public holiday. European indices closed lower yesterday, as tensions escalated between the UK and European Union

10.02 AM: Vodafone Idea rebranding plans

The debt-laden telecom carrier, with about 280 million subscribers as of June is rebranding itself. Announcing a major strategic move today, Vodafone Idea, unveiled a new brand identity which will now be called "Vi". Amid efforts to rediscover itself in the highly competitive telecom sector, the telco aims to draw a new set of subscribers while promising them assured quality under the new brand and stop further user erosion. For its survival, essential to avoid a duopoly in the Indian telecom sector, the telco may announce new tariff plans in the coming days.

Under the top BSE 200 scrips, Vodafone's shares have risen 21% MoM. The stock has gained 65% year-to-date, ranking in the fourth position in top BSE 200 scrips, after Adani Green, Aurobindo Pharma, Divi's Labs and Tata Consumer

Vodafone Idea stock is just Rs 12 and the firm has big plans! Should you invest?

9. 53 AM: Bharti Infratel stock

"Bharti Infratel was the best performing stock of the Nifty on Monday (up 7.52%). Bharti Infratel has rallied 22.4% in the last 4 trading sessions. Bharti Infratel is rallying as the Company has got a nod from the board for merger with Indus Tower which has been postponed twice in the past. Merger with Indus will bring in synergy benefits for the Company. Also, the overhang of AGR verdict is removed from Vodafone Idea. After the AGR verdict , Vodafone Idea's board decided to raise up to Rs.25,000 crores from the market clearly showing that Vodafone Idea intention is not to close the shop. Real profit for the Company comes in when the tower is shared by two operators. So the Vodafone Idea surviving in the industry is positive for the Company. If Vodafone Idea is able to raise the required quantum of funds can lead to further rally in the stock."

9. 42 AM: Stocks to watch today on September 8

SBI, Vodafone Idea, Maruti Suzuki, ITC, Dr Reddy among others are the top stocks to watch out for in Tuesday's trading session.

Stocks in news: SBI, Vodafone Idea, Maruti Suzuki, ITC, Dr Reddy

9. 30 AM: FII action

Foreign portfolio investors (FPIs) sold shares worth Rs 6.93 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 815.82 crore in the Indian equity market on 7 September, provisional data showed.

9.22 AM: Opening session

Sensex and Nifty opened on a bullish note on Tuesday, amid positive global equities. Sensex traded 80 points higher at 38,498 and Nifty gained 23 points to 11,378.

9. 10 AM: Earnings Today

Future Consumer, Jindal Stainless, CESC, Dishman Carbogen Amcis, SML Isuzu, Spencer's Retail, Mafatlal Industries, Bal Pharma, Sharon Bio-Medicine, Simplex Projects, Texmaco Rail & Engineering among others are scheduled to announce their June quarter earnings today.

9. 01 AM: Nifty outlook

NSE-NIFTY reversed from its 3-week low and regained 11,350 mark. The index ended the day on an indecisive note forming a Doji pattern. Due to recent recovery in the index from lower levels, its key technical indicators on the near-term timeframe chart reversed from its oversold zone and given buy signal. This could take the index towards 11,584 and 11,794 levels. In case of decline, the index will initially find support at 11,111 and then at 10,806 levels, which coincides with its recent swing low and its 200-day SMA, respectively.

As for the day, support is placed at around 11,277 and then at 11,200 levels, while resistance is observed at 11,407 and then at 11,459 levels.

8. 55 AM: Rupee closing

On a similar note, the rupee on the currency front witnessed high volatility and later settled 21 paise lower at 73.35 against the US dollar, amid weakness in domestic equities and a strong dollar.

On Rupee's outlook, Vaqarjaved Khan- Research Analyst, Angel Broking said, "With risk sentiment improving and global economies recovering from this unprecedented pandemic, USDINR (CMP: 73.19) is likely to move lower towards 72.5 in the coming week."

8. 40 AM: Market outlook

Ajit Mishra, VP - Research, Religare Broking said, "We feel the performance of global markets combined with development on India-China LAC issue will continue to dictate the market trend. Considering the market scenario, traders should maintain positions on both sides and prefer hedged bets."

8. 30 AM: Closing session yesterday

After a volatile session on Monday, Sensex and Nifty closed marginally higher, tracking mixed cues from global equities. Sensex ended 60 points higher at 38,417 and Nifty gained 27 points to 11,325. Traders said subdued global cues and lingering border tension with China continued to weigh on investors' sentiments.

Sensex, Nifty end tad higher amid mixed global cues; Bajaj Finance, M&M top losers