Stock Market Highlights 1 Sept 2022: Nifty ends near 17,550, Sensex tanks over 750 points amid weak global cues; how it happened
Stock Market Live Updates: The Indian market ended lower by more than one per cent amid weak global cues.
(By Ravi Kant kumar)
Stock Market Live Today: The Indian market ended lower by more than one per cent amid weak global cues. Benchmarks Nifty50 and Sensex declined by around 1.25% each as the former closed above 17, 500, while the latter called the day with over 700 points cut.
Nifty Midcap and smallcap indices ended flat with marginal gains even as India Volatility Index (VIX) inched closer to 20-mark with over six per cent change on Thursday.
Nifty IT and Oil & Gas were the lop laggards among sectoral indices, declining by around two per cent each. Auto, PSU Bank and Realty outperformed in a falling market.
"Domestic indices moved in line with peers while prospects of higher rate hikes, elevated inflation and a slowing economy put pressure on stock markets around the world," said Vinod Nair, Head of Research at Geojit Financial Services.
Although India’s Q1 GDP was reported below the RBI’s estimate of 16.2%, the strong growth seen in manufacturing activity during Q2 so far indicates a strong recovery in the domestic market, said Nair. "Additionally, ongoing support from FIIs will obscure the weakness, helping domestic indices to stay resilient," he added.
Among stocks, Hindalco, Reliance Industries, TCS and ONGC were among the top losers. Tata Consumer, Bajaj Finserv, Asian Paints, Eicher Motors and Bharti Airtel were among leading gainers in an otherwise weak market.
"The Indian equity markets are witnessing high volatility as global cues are weak, but our market is not ready to go down where every dip is taken as a buying opportunity. FIIs are in a buying mood despite the rise in the dollar index and US bond yields, whereas the rupee has gained remarkably in the last two trading sessions," said Santosh Meena, Head of Research, Swatika Investmart Ltd. on Market.
Meena said 17160 is the previous swing low, 17000 is 200-DMA, and 16920 is a 38.2% retracement of the previous rally. "Therefore, 17160-16920 is a critical demand zone. On the upside, 17800-18000 is an immediate supply zone; above this, the Nifty will prepare itself for new highs," he added.
Earlier, reversing the losses into profit, the Indian market ended higher by more than two and half per cent on Tuesday against a loss of 1.5% in Monday's session. The market remained closed on Wednesday on account of Ganesh Chaturthi holiday. Buoyed by Foreign Institutional investors' interest and strong buying sectoral stocks, the benchmarks Nifty50 rose by 446.40 points (2.58%) to 17,759.30 and the Sensex settled with gains of 1564.45 (2.70%) to 59,537.07.
A highlight of the recent market trend is India's outperformance among large markets. While the US, Europe and most large emerging markets have turned weak, the Indian market has shown surprising resilience, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"Since the Fed chief Powell's ultra-hawkish message last Friday, the S&P 500 is down 5.8%, while the Nifty is up 0.9%. A major factor driving this outperformance is the return of FIIs into the Indian market. It is important to appreciate the fact that the FIIs investment of Rs 4165 cr on Tuesday in the cash market is the largest buy figure in 2022. This is providing momentum to the market," said Vijayakumar.
However, investors have to exercise caution since valuations are high and the global growth environment is not favorable for a sustained bull market, he said.
"Even while remaining invested, some profit booking may be a good idea," the expert recommended.
Earlier, On Thursday, the cues from global markets and SGX Nifty remained negative in early trade with SGX Nifty trading lower on Thursday morning and the US markets ending in the red on Wednesday.
A majority of the Asian indices traded in the red too on Thursday morning.
Meanwhile, India remained the world's fastest-growing economy, with GDP expanding 13.5 per cent in the April-June quarter, the quickest pace in a year, but rising interest costs and the looming threat of recession in major world economies could slow the momentum in coming quarters.
Gross domestic product (GDP) growth of 13.5 per cent year-on-year compares to a 20.1 per cent expansion a year back and 4.09 per cent growth in the previous three months to March, official data released on Wednesday showed.
The government is expecting the economy to grow at 7-7.5 per cent in 2022-23, in line with its projections made at the beginning of this financial year.
India registered a growth of 8.7 per cent in 2021-22.
"We remain on course to meet the 7.4 per cent. We expect to achieve. This does not really reflect on what is expected to be annual real GDP growth. So, 7-7.5 per cent in that range. 7.4 per cent is what the IMF has predicted," Finance Secretary T V Somanathan said on Wednesday.
Latest Updates
Nifty: 17200-18000 is the broad range for the short term consolidation
The Nifty witnessed volatile action on September 01. The index had seen a swift up move in the previous session; however there was no follow through buying today. Throughout the day, the index oscillated around the key hourly moving averages & the 20 DMA. Ultimately, the Nifty has formed an Inside bar pattern on the daily chart. The overall structure shows that the index is in short term consolidation since the last couple of weeks & that is likely to continue going ahead. 17200-18000 is the broad range for the short term consolidation.- Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
Bank Nifty outlook
"The Bank Nifty index witnessed volatility throughout the day and ended negatively. After a gap-down opening, the index managed to hold the support of 38,800-38,500 on the downside, indicating the bias remains on the positive side. The immediate hurdle on the upside is placed at 39,500 and once taken out will see a sharp move on the upside towards 41,000 levels," said Kunal Shah, Senior Technical Analyst at LKP Securities.
"17400 may continue to act as crucial support for Nifty"
"Nifty remained sideways during the day before ending 1% lower. After starting to gap down on the back of a weak global cue, the Nifty failed to recover fully and traded within a range for the day. The momentum indicator is in a bearish crossover indicating a bearishness. On the lower end, 17400 may continue to act as crucial support, below which the index may become weak again. On the higher end, resistance is visible at 17700."- Rupak De, Senior Technical Analyst at LKP Securities
"We continue to advocate a SIP investment strategy in this market"
Most Asian markets have traded lower today and have lost more than 1% each basis the weakness seen overnight in the US markets which have closed lower for the 4th day on the trot. The weak global sentiment was accompanied on the domestic front by tepid GDP growth numbers. Predictably the major sector which has led on the way down is the IT sector which is directly affected by the weakening business sentiment in the US. The US Fed has made it absolutely clear that they will raise rates and keep them higher for longer; and removed any ambiguity that was helping keep the market afloat. Certain important economic indicators like Baltic Dry Freight index have lost around 60% over the past 3 months while copper has declined ~ 19% over the same period. Crude too which had seen firmness due to geopolitical ruction too has lost 23% over the past 3 months. These are important indicators which help us understand the evolving situation on the ground. We continue to advocate a SIP investment strategy and avoid timing entry/exit in the market.
Vineet Bagri, Managing Partner- TrustPlutus Wealth
Penny stock hits 10% upper circuit on rights issue record date; stock surges 59% in one month
Gautam Gems rights issue record date: Shares of Gautam Gems, a small cap company with a market cap of a little over 64 crore as on September 1, rose 10% to hit upper circuit on Thursday. Gautam Gems share price was trading at Rs 12.77 per share on the BSE. The spike in the stock price pf this gems and jewellery stock comes amid record date of the rights shares. As on September 1, 2022, the stock has garnered a return of 59% in the past one month and yielded 73% return in the last one year. Full Report
Indices trade near day's low; Sensex tanks over 950 points
The Indian market has been trading near it's day's low amid volatility on Thursday. IT, Oil & Gas and Metal were leading the drag. Nifty slipped below 17,500, while the Sensex tanked over 900 points ahead of closing on Thursday.
UPI transaction value touches Rs 10.73 lakh crore in August
Digital payment transactions value through UPI rose to Rs 10.73 lakh crore in August this year, up marginally from the previous month, data showed on Thursday. In July 2022, the UPI-based digital transaction value stood at Rs 10.63 lakh crore. Full Report
DreamFolks IPO allotment date - check online status, direct link, listing date
DreamFolks Services IPO allotment date, check online status: DreamFolks Services IPO allotment status will be declared today, September 1. DreamFolks IPO allotment status will be available online. DreamFolks IPO allotment status will be declared on the official registrar's website. Full Report
TTML: Multibagger stock jumps 13%; up over 3300% in 2 years; buy Tata Group stock for this target
TTML Share Price target: Shares of Tata Teleservices (Maharashtra) Ltd rose almost 13% in the BSE intraday trade on Thursday. The jump in TTML stock price came after the stock witnessed a breakout and closed in upper circuit of Rs 108.45 per share on the BSE on Tuesday. TTML share price jumped around 13% to Rs 123.75 per share in BSE intraday trade amid spurt in volume on Thursday. Full Report
GST Collection Data August 2022: Big YoY jump! Rs 1.43 lakh crore - Key details
Goods and Services Tax (GST) collection in August 2022 stood at Rs 1,43,612, according to data released by the Ministry of Finance on Thursday. Full Report
TTML share price jumps over 12%
Shares of Tata Teleservices rose higher by more than 12% to Rs 123.75 per share in BSE intraday trade on Thursday. The spike comes amid spurt in volume 3.3 times
SpiceJet share price falls 17% on widening loss
Shares of SpiceJet declined 17% to Rs 39.60 per share on the BSE as the airline company's net loss widened to Rs 789 crore in the quarter ended June 2022. SpiceJet on Wednesday reported widening of net loss to Rs 789 crore in June quarter 2022-23 as high fuel prices and rupee depreciation adversely impacted the budget carrier.
Indices trim early losses
Benchmark Indices trimmed early losses as Nifty50 was trading near 16,700, while the Sensex was seen trading lower by around 300 points. PSU Bank, Auto and Realty helped indices cut early losses
Ashok Leyland share price hits 52-week high- Here's why
Shares of Ashok Leyland jumped around five per cent to trade on fresh 52-week high after the auto major bagged mega order from UAE. The auto stocks jumped five per cent to Rs 161.75 per share on Thursday's intraday trade after the company said that the flagship brand of the Hinduja Group had bagged orders from major fleets for 1,400 school buses in the UAE, the company's largest ever supply of school buses in this country. Full Report
Nifty, Sensex losers and gainers
Only four stocks advanced on the 30-share Sensex, while eight stocks traded in the green on Nifty50 in the opening session.
Bharti Airtel, Bajaj Finserv were top gainers on benchmarks, while the drag was led by Hindalco, Infosys and TCS
Derivatives market
Nifty weekly contract has highest open interest at 17950 for Calls and 17500 for Puts while monthly contracts have highest open interest at 18700 for Calls and 17500 for Puts. Highest new OI addition was seen at 18000 for Calls and 17000 for Puts in weekly and at 18000 for Calls and 16000 for Puts in monthly contracts. FIIs increased their future index long position holdings by 23.28%, increased future index shorts by -16.71% and in index options by 3.56% in Call longs, 20.03% in Call short, -10.16% in Put longs and 12.17% in Put shorts.-
Anand James - Chief Market Strategist at Geojit Financial Services.Majority stocks in red in pre-opening
Three stocks advanced on the 30-share Sensex, while only four stocks trade in the green on Nifty50.
Nifty, Sensex drop over 1% in pre-open
Benchmarks Nifty and Sensex slipped over one per cent as the former traded around 17,500, while the latter declined by over 600 points
Nifty support and resistance
The evening star pattern in weekly chart has been invalidated, but the extraordinary rise on Tuesday, that marked the biggest single day gain since May makes it a difficult act to continue today. This forces us to retain the downside marker at 17250, and hopes to see a close back above17600, in order to keep up the hopes of an 18600 move in the short term. - Anand James - Chief Market Strategist at Geojit Financial Services.
FIIs clock highest single-day buying in 2022
At Rs 4165 cr investment in cash market on Tuesday (August 30), it is the largest FIIs buying figure in 2022.
SpiceJet loss widens to Rs 789 crore in June quarter; CFO Sanjeev Taneja resigns
As SpiceJet recorded a net loss of Rs 789 crore, the airline's Chief Financial Officer Sanjeev Taneja resigned on Wednesday. SpiceJet said in a regulatory filing, said that its Chief Financial Officer resigned with effect from August 31. SpiceJet airline reported a net loss of Rs 789 crore (Rs 420 crore excluding forex adjustment) for the quarter ending June 30, 2022 as compared to a net loss of Rs 729 crore in the quarter ending 30 June, 2021 as business was severely impacted by record high fuel prices and a depreciating rupee.
Ashok Leyland bags mega order for 1,400 school buses in UAE
Ashok Leyland, the flagship brand of the Hinduja Group, on Wednesday announced bagging orders from major fleets for 1,400 school buses in the UAE, the company's largest ever supply of school buses in this country. The total fleet deal worth AED 276 Million (USD 75.15 million) for the GCC-made buses has been bagged by Chennai-based Ashok Leyland's UAE distribution partners, Swaidan Trading - Al Naboodah Group. Full Report
Windfall profit tax on export of diesel, jet fuel hiked
The government has hiked the windfall profit tax on the export of diesel to Rs 13.5 per litre and on jet fuel exports to Rs 9 a litre, besides raising the levy on domestically-produced crude oil in line with the hardening of global prices. At the fourth fortnightly review, the government raised the windfall profit tax on the export of diesel to Rs 13.5 per litre from Rs 7 per litre. The tax on Aviation Turbine Fuel (ATF) exports too has been hiked to Rs 9 from Rs 2 per litre with effect from September 1, according to a finance ministry notification issued late Wednesday night.
Alongside, the tax on domestically-produced crude oil too has been hiked to Rs 13,300 per tonne from Rs 13,000.
Brightcom Group forays in Quantum Computing
Brightcom Group has decided to enter the "Quantum Computing "domain. As a first step, it would set up a dedicated lab in San Francisco Bay Area, California, with a team of Quantum Technology experts across the Globe. The objective is to advance Quantum computing technologies for AdTech and other digital marketing requirements of the company
Tata Motors acquires full stake in Tata Marcopolo Motors
Tata Motors on Tuesday said it has completed the acquisition of its partner Marcopolo's stake in their bus body manufacturing joint venture Tata Marcopolo Motors Ltd. In December 2020, Tata Motors and Marcopolo had entered into an agreement, under which the homegrown automaker agreed to purchase 49 per cent shareholding of its Brazilian partner for Rs 99.96 crore in the joint venture. The 51:49 JV was formed in 2006.
GDP growth in line with market expectations
This is in line with market expectations which was in the range of 13% to 16.5 %. This quarter witnessed better economic recovery despite global uncertainties and high inflation. Indian stock market should take this number in a positive note. However, higher interest rates can hit economic activities in the next few quarters which may slowdown the pace of India’s economic growth. We can expect another rate hike of 25 to 50 basis points in the coming months. Thus, despite India remaining the world’s fastest growing economy, all eyes are place on global recession fears and rising borrowing costs.
Raghvendra Nath, MD, Ladderup Wealth Management Pvt Ltd.
LPG Cylinder Price Cut
Commercial LPG cylinder prices have been slashed by Rs 91.50 per cylinder. With this price cut, the new rate of an LPG cylinder is Rs 1885 against Rs 1976.50 previously. Likewise, now one 19-kg LPG cylinder will cost Rs 1995.50 in Kolkata, Rs 1844 in Mumbai and Rs 2045 in Chennai. The price of domestic LPG cylinder has been kept unchanged.
Asian markets start in red
The Asian markets were seen trading largely in negative in early trade on Thursday. Japanese Nikkei 225 was trading lower by 1.65%, Hang Seng Index at the Hong Kong Exchange declined 1.1% and Chinese Shanghai Composite marginally gained 0.15% in on Thursday morning
SGX Nifty drops over 40 points
Indicating a flat to negative opening for the domestic market, the SGX Nifty dropped over 40 points to trade at 17,468.5 in early trade on the Singaporean exchange on Thursday.
US market ends in red
Extending the losses to the fourth consecutive session, the US markets closed in the red on Wednesday. Dow Jones declined by 280 points, Nasdaq Index dropped 66.93 points and S&P500 ended lower by 31 points on Wednesday.
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