Stock Market Highlights 7 Sept 2022: Nifty ends above 17,600, Sensex settles near 59,000; Shree Cement, UltraTech shine in weak market
Stock Market Highlights 7 Sept 2022: The Indian market ended flat with marginal loss amid mixed global cues on Tuesday.
The Indian market trimmed losses, however, closed in the red amid volatile global markets on Wednesday. Benchmarks Nifty 50 and Sensex ended flat with negative bias as the broader Nifty50 closed near 17,600, while the Sensex dropped around 150 points to end near the 59,000-mark.
Outperforming benchmark indices, Nifty Midcap rose higher by half per cent, while Small cap index surged 0.78%.
Sectorally, auto, private bank declined the most, while Media, IT, pharma, healthcare and consumer durables aided the recovery on Dalal Street.
"The latest economic figures indicate that the US central bank would continue to raise interest rates. As, according to ISM's (Institute of Supply Management) US Non-Manufacturing PMI, the services sector expanded last month at a rate that was higher than anticipated, putting pressure on global markets. Main indices followed the global trend however, mid & small caps rallied with strong outperformance," said Vinod Nair, Head of Research at Geojit Financial Services, summing up Wednesday's trading session.
Cement stocks—Shree Cement and Ultratech Cement led the recovery on the benchmarks, while Tata Motors, Bajaj Auto, IndusInd Bank and Bharti Airtel declined the most
There are near-term strong headwinds for risky assets, globally. Bonds are in a strong bear market. US 10-year yield at 3.34 % and dollar index above 110 are strong headwinds for capital flows to EMs like India, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services on Wednesday morning.
"FPIs are buying in the cash market but hedging through increasing short positions in the derivatives market. High volatility with downward bias is in store for the markets in the near-term," he said.
Vijayakumar was of the view that when globally equities correct, India too will correct. But India will fall less since falling crude, decent economic growth, impressive corporate earnings and retail investor enthusiasm will support the market at lower levels, he underlined
"Domestic economy-facing segments like banks, autos, capital goods, telecom and FMCG are relatively strong sectors," he added.
Latest Updates
USDINR outlook
USDINR (CMP Rs 79.92 spot): Indian rupee depreciated by 0.12% today on a weak tone in the domestic markets and a strong Dollar. US Dollar surged as economic data from US surprised the markets. US ISM services PMI unexpectedly rose to 56.9 in August from 56.7 in July and expectations of a decline to 55.4. this raised expectations of a 75-bps rate hike by the Federal Reserve in its FOMC meeting later this month. However, weak crude oil prices and FII inflows cushioned the downside. We expect Rupee to remain weak on strong US Dollar and weak cues from global markets. Dollar index surged to a fresh 20-year high and is currently trading around 110.45 levels. Recovery in crude oil prices from lower levels may also weigh on Rupee. However, FII inflows may support Rupee at lower levels. Markets may also take cues from US trade deficit which is expected better than previous month. USD INR spot price is expected to trade in a range of Rs 79 to Rs 80.50 in next couple of sessions.-
Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas
Gold outlook: Wider markets remain under pressure anticipating steep hike by Fed
Gold (CMP $1704/Oz spot):
Spot gold is currently trading a tad higher as the US 10-year yields after rallying to fresh cyclical high of 3.37% yesterday have retreated by 1%. Much awaited US ISM services PMI data (August), released yesterday, topped the forecast as the data unexpectedly rose to 56.90, a four-month high reading, on easing supply chain and logistics issues. Although S&P Global US Services PMI painted a starkly different picture of the US services sector as the S&P services data showed that services sector contracted at the fastest pace since 2020, the market participants in general give more importance to the US ISM services data, which in turn pushed the yields higher. Surging yields sent gold lower to low $1790s level. Wider markets remain under pressure as probability of a 75-bps hike in September has risen sharply. Market participants look forward to Fed Chair Powell’s speech tomorrow for clues to Fed’s monetary policy path.The possibility of a sharp decline in gold prices due to capitulation has increased significantly. Traders are likely to treat any bounces/rallies as a selling opportunity for a target of $1675.
Praveen Singh – AVP, Fundamental currencies and Commodities analyst at Sharekhan by BNP Paribas
Nifty: Consolidation can continue further
The Nifty has been witnessing short term consolidation, where it has been swinging in both the directions. On September 07, it opened gap down however there was no follow through selling. The index attracted buying support near the psychological mark of 17500 as well as near the swing low of 17468. Thereon the index had a gradual recovery & moved up again towards the key hourly moving averages, where it had halted in the previous session. Structurally, the consolidation can continue further & any move towards 17700 is expected to attract another round of selling. Additionally, the selling pressure can aggravate once the level of 17500 is breached on a closing basis.-
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
Bank Nifty stuck in broad range: Bias remains on the buy side
"The Bank Nifty index is stuck in a broad range of 1500 points where stiff resistance is visible at 40,000 and support is seen at 38,500. The index will witness a trending move on a break on either side. The immediate support stands at 39,200 and if breached will see a further decline toward the 38,800-38,500 zone. The bias remains on the buy side as long as the mentioned support level is held."- Kunal Shah, Senior Technical Analyst at LKP Securities.
Nifty may drift down towards 17200
"Nifty started to gap down and remained with a positive bias throughout the day. On the lower end, bulls were able to protect 17500 on a sustained basis, which attracted buyers at the lower levels. The trend remains positive for the near term. On the lower end, support is visible at 17470, below which Nifty may drift down towards 17200. Resistance is visible at 17750." Rupak De, Senior Technical Analyst at LKP Securities.
Crude oil: Things not looking good in terms of demand growth
WTI Crude oil (October) CMP $87.34
Crude oil prices for October futures fell 0.5% to trade around $86.45 during mid European hours following a 2.6% slide on Tuesday, when the contract finished at $86.88 per barrel. Despite all the efforts by Saudi led OPEC+ to keep prices higher by announcing a production cut of 0.1mbpd, prices are heading for a south trip as the economic conditions in Eurozone and China keeps deteriorating by each passing week. The unprecedented level of covid-19 restriction in China has brought down the second largest economy to its knees, the August crude oil imports fell by 9.4% from an year ago, while European construction PMI dropped to 44.2 in August from 45.7 in July, marking 4th month of straight decline. The US on other front is giving hope to lead the economic revival with ISM services notching best reading in 4 months, which pushed Saudi Arab to sell their benchmark oil grades as premium to US buyers. Overall things are not looking any better for crude in terms of demand growth, while supply disruption from Libya and other region could spurt prices but will not be sustainable for longer term in absence of incremental demand. We see prices to test support of $82 followed by $80.- Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas
Concor share price jumps 10%, hits 52-week high
Container Corporation of India shares jumped nearly 10% to trade on 52-week high value of Rs 766.30 per share in BSE intraday trade on Wednesday. The volume rose by massive over 14 times as the counter hit year-high value. The stock traded on 52-week low value of Rs 554 per share on May 20 this year
Ambuja Cements share price hits 52-week high; 4 cement stocks to buy from large cap, midcap and small cap categories
Shares of Ambuja Cements jumped more than four per cent in early trade on Wednesday to hit 52-week high value of Rs 457.50 amid spurt in volume. The counter opened at Rs 437.20 and rose 4.5% to touch its fresh 52-week high value. Meanwhile, the company also clarified over number of shares tendered in connection with an open offer to the shareholders of Ambuja Cements Limited (“Open Offer”). Full Report
Cement stocks shine in weak market
Cement stocks were leading the recovery on the benchmarks. Sharee Cement gained 5.7% to Rs 22,889.95 per share on NSE, while UltraTech Cement gained 3.5% to Rs 6730 per share on the BSE.
EIH share price hits 52-week high
Shares of EIH Ltd surged over 11% in BSE intraday trade to hit 52-week high of Rs 203.80 per share on Wednesday amid a spurt in volume.
Bharti Airtel share price falls over 2% intraday; brokerage sees around 40% upside | Here's why
Shares of Bharti Airtel fell around two per cent in BSE intraday trade on Wednesday. The counter was also volume topper on the BSE with a total tradable quantity of 6,05,912 shares worth Rs 45.33 crore in intraday trade on Wednesday. The telecom scrip has yielded around 13% return in the past one year as on September 7. Full Report
IndusInd Bank share price: Morgan Stanley raises target
Global brokerage firm Morgan Stanley maintained an overweight stance of IndusInd Bank and raised target price from Rs 1300 to Rs 1400
Construction tech startup Project Hero raises $3.2 million, to expand business
Construction tech startup Project Hero has raised USD 3.2 million (about Rs 25.5 crore) in a funding round led by Ankur Capital and Omidyar Network India to expand business. The seed funding round also saw the participation from investors such as Titan Capital. Full Report
Market narrows losses; IT among top gainers
The Indian market trimmed losses in the afternoon trade on Wednesday as Nifty traded above 17,600, while the Sensex near 59,100. IT turning positive along with FMCG, Consumer Durables aided the market
Bluedart Express share prices hits 52-week high
Shares of Bluedart Express surge over five per cent to hit 52-week high value of Rs 9277.00 per share in BSE intraday trade on Wednesday.
Buy GMM Pfaudler, Tata Investment and Triveni Tribune for these short-term target price
GMM Pfaudler declined over three per cent to Rs 1997.80 per share in BSE intraday trade on Wednesday. Tata Investment rose around one percent to Rs 1816.75 a share and Triveni Tribune shares traded flat at Rs 217.40 per share on the BSE. Full Report
BUY Ramco Cements share - Check price target by Anil Singhvi | Aaj Ke 2000
BUY Ramco Cements share: Zee Business Managing Editor and renowned market guru Anil Singhvi on Wednesday gave a BUY call for Ramco Cements Future. In a special edition 'Aaj Ke 2000' aired on Zee Business, he said that all cement stocks are performing well and investors should buy this stock at the current price of Rs 775. Full Report
Morgan Stanley raises Bharat Electronics share price target
Maintaining an overweight rating, Morgan Stanley raised target price of Bharat Electronics to Rs 373 from Rs 260. It believes the local defence manufacturing theme is as powerful as PLI schemes despite no incentives being provided. Import bans have created a large opportunity for the entire eco-system, it said
Mastek share price hits 52-week low
Mastek share price slipped over one per cent in early trade on Wednesday to touch fresh 52-week low of Rs 1824.80 per share on the BSE. This was the third consecutive 52-week low in as many days by the IT stock.
Ambuja Cements share price
Shares of Ambuja Cements jumped over four per cent in BSE intraday trade to hit 52-week high of Rs 455.90 per share on the BSE on Wednesday. The spike in share price comes amid spurt in volume of the share.
BUY Avadh Sugar & Energy share - Check price target by Zee Business expert | Jain Saab Ke Gems
BUY Avadh Sugar & Energy share: Market expert Sandeep Jain on Wednesday recommended a sugar stock to the Zee Business views for good returns. In a special edition 'Jain Saab Ke Gems', aired on Zee Business with Managing Editor Anil Singhvi, he said that Avadh Sugar & Energy could be a good buy. He said that the is a Birla Group company. Full Report
HAL hits 52-week high
Shares of Hindustan Aeronautics Ltd. (HAL) jumped over one and half per cent to hit 52-week high of Rs 2450.00 per share after he company issued statement saying HAL is proud to be associated with India's first indigenously designed and built aircraft carrier, IAC-1 Vikrant which was commissioned recently as INS Vikrant by the Prime Minister at Kochi. IAC is powered by four General Electric LM2500 Gas Turbines supplied by HAL, it said.
IT, Bank stocks worst hit; FMCG gain
IT, Bank, Financial Services were the worst hit, while FMCG attracted buying interest in a weak market on Wednesday
Bank Nifty tanks over 300 points
Bank Nifty tanked more than 300 points or around one per cent in early trade on Wednesday, a day after the banking index reclaimed 40,000-mark for the first time since November 2021.
Stock Market Opening: Nifty, Sensex gainers and losers
Meanwhile, the broader market continued to outperform benchmarks as midcap and smallcap indices were trading higher by 0.20% and 0.15% during the opening session.
Sectorally, the majority of the indices traded in the red, while media, metal and pharma traded flat with positive bias. Banking indices were top drag among sectoral indices.
Meanwhile, Coal India, Cipla, NTPC, Powergrid gained in a weak market, while IndusInd Bank, Bharti Airtel, Kotak Bank and ONGC were top laggards
Nifty outlook: Eyes are now on the 17470/400region
Inability to float above 17690 after the early spike yesterday, suggests easing of upside momentum. This would mean that the eyes are now on the 17470/400region discussed yesterday, to see if buyers could regroup to stall a 17000-16650 drop. Anand James - Chief Market Strategist at Geojit Financial Services.
Nifty, Sensex in per-open
The Indian market tanked over half per cent in the pre-open session as the Nifty50 traded near 17,500, while the Sensex took a hit of over 400 points.
Dreamfolks Services Ltd posts June '22 results on debut day
Newly-listed Dreamfolks Services reported a consolidated net profit of Rs 13.4 crore as compared to a loss of Rs 1.4 crore in the corresponding quarter last year. The revenue from operations jumped to Rs 160 crore from Rs 24.5 crore year-on-Yar (YoY).
#OperationHaftaVasooli: BIG IMPACT! FM calls meeting to tighten noose around digital lending app frauds
Impact of Zee Business’ Operation Hafta Vasooli: In order to weed out frauds emerging from digital lending apps and platforms, Finance Minister Nirmala Sitharaman has called a meeting with officers of the Reserve Bank of India (RBI) and the Department of Financial Services (DFS) on Thursday. Full Report
Govt sets up Kirit Parikh committee to control gas prices
The government has set up a panel to review the formula that dictates the pricing of gas produced by companies like ONGC and Reliance as it looks to moderate the steep increase that producers would have otherwise got. The committee under former planning commission member Kirit S Parikh will suggest a "fair price to the end consumer", according to an order of the oil ministry.The panel, which will include representatives of the gas producers association as also producers ONGC and OIL, has been asked to submit its report by the month-end. PTI
Paras Defence, GRM Overseas, Wipro and other stocks in news today
Tamilnad Mercantile Bank IPO will close today, while several stocks will remain in action based on corporate announcements and other related news with them. Apart from Paras Defence GRM Overseas and Wipro, there will be several other stocks that will remain in focus. Check the list and triggers
Biocon sells 5.4% stake in Syngene International
Drugmaker Biocon on Tuesday divested a 5.4 per cent stake in its research arm Syngene International for a little over Rs 1,220 crore through an open market transaction. According to bulk deal data available with the BSE, Biocon, the promoter of Syngene International, sold a total of 21,789,164 shares, amounting to a 5.4 per cent stake, in the company.
Tamilnad Mercantile Bank IPO closes today
Tamilnad Mercantile Bank IPO was subscribed 1.53 times at the end of Day 2 on Tuesday. The three-day IPO, which will close today, witnessed bidding made for 1.33 crore shares against IPO size of 87.12 lakh shares. Retail investors' quota was booked 3.61 times, while non-institutional investors bought 1.27 times of their reserved portion.
Asian markets tank
Asian markets tanked in early trade with Japanese Nikkei trading lower by almost 350 points, while Hang Seng Index at the Hong Kong Exchange dropped over 250 points and Chinese Shanghai Composite was seen lower by 5 points in early trade on Wednesday
SGX Nifty tanks 200 points
SGX Nifty, which indicates opening trend for the Indian market, nosedived around 200 points in early trade as the index dropped on the Singaporean exchange to trade around 17,470
US market ends in red after holiday
The US market ended in red on Tuesday, a day after it opened post Labor Day holiday. Wall Street indices Dow Jones declined 0.55%, Nasdaq ended lower by 0.74% and S&P500 saw a 0.4% cut on Tuesday
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.