Share Market Highlights September 16, 2024: Sensex rebounds nearly 100 pts to hit lifetime high; Nifty scales record intra-day level

The rupee witnessed range-bound trade and settled for the day higher by 4 paise at 83.88 (provisional) against the US dollar on Monday supported by weak American currency and significant foreign fund inflows, while firm crude oil prices capped sharp gains.

Forex traders said market participants are eagerly awaiting cues from the US Fed policy on Wednesday, with a rate cut all but certain. However, the magnitude of the cut remains uncertain.

Top gainers:

NTPC (2.55%), JSW Steel (1.71%), Hindalco (1.67%), Shriram Finance (1.52%), L&T (1.24%) 

Top losers: 

Bajaj Finance (-3.38%), Hindustan Unilever (-2.16%), Bajaj Finserv (-2.02%), SBI Life (-1.27%), Britannia (-1.04%)

Strides Pharma Science Limited (Strides) announced that its step-down wholly owned subsidiary, Strides Pharma Global Pte. Limited, Singapore, has received approval for Fluoxetine Tabs 60 mg, from the USFDA.

Strides Pharma Science stock rose 2.46% on the NSE, trading at ₹1,387.95

Top gainers:

NTPC (2.06%), JSW Steel (1.82%), L&T (1.48%), Hindalco (1.45%), Shriram Finance (1.41%)

Top losers:

Bajaj Finance (-3.29%), Hindustan Unilever (-2.24%), Bajaj Finserv (-2.06%), SBI Life (-1.28%), Grasim (-0.96%)

Stocks advanced on BSE at 3 pm on September 16, 2024, were 2,090 against 1,978 stocks that declined, and 101 remained unchanged. Total stocks traded were 4,169. The number of stocks that recorded a 52-week high was 371, and those that hit a 52-week low was 34. 

A total of 435 stocks traded in the upper circuit, and 234 in the lower circuit.

Laurus Labs Ltd announced the inauguration of its new R&D centre at IKP Knowledge Park, Plot No DS15, Kolthur Shamirpet Medchal Telangana. 

Shares trade flat on the NSE at ₹505.15.

Insolation Green Energy Private Limited a Wholly Owned Subsidiary Company of Insolation Energy Ltd (INA), performed the Bhoomi Poojan Ceremony for 3GW PV Module Facility and 12,000 MTA Aluminium frame Plant at Village – Sawarda, Ajmer Road, Jaipur - Rajasthan. This in line with our planned capex in Insolation Green Energy Private Limited.

Insolation Energy stock declined 4.05% on the BSE, trading at ₹3600

Indian benchmark indices traded marginally higher on Monday afternoon, with the Nifty and Sensex both showing slight gains. As of 1:02 pm, the Nifty was trading at 25,371.85, up 15.35 points or 0.06 per cent from its previous close. The Sensex stood at 82,962.50, gaining 71.56 points or 0.09 per cent.

Market breadth remained positive, with 858 stocks advancing and 709 declining on the BSE. A total of 1,655 stocks were traded, while 88 remained unchanged. The exchange saw 349 stocks hitting their 52-week highs, compared to 30 touching 52-week lows.

Shyam Metalics and Energy Ltd. (SMEL) announced the expansion of its production capabilities with the establishment of Greenfield Cold Rolling Mill (CRM) in Jamuria, West Bengal.

Shares were up 2.16% to trade at ₹890 on the NSE

GHCL board has approved Capex of Rs. 50 Cr. for purchase of office premise of the Company in Ahmedabad.

Shares trade flat on the NSE at ₹692.75

Major stocks that hit a 52-week high on the NSE:

Oswal Greentech (19.20%), BSE (14.82%), Arihant Capital (13.70%), GM Breweries (9.74%), LT Foods (6.04%)

Intellect Design Arena Ltd has announced a global partnership with HCLTech, a leading global technology company. 

Intellect Design Arena shares rose 1.34% on the NSE, trading at ₹999.

HCLTech stock trades flat on the NSE at ₹1,814.80.

Optiemus Infracom has accorded its approval to give Letter of Comfort / Guarantee to ICICI Bank Limited for securing the credit facility amounting to Rs. 25 Crore, availed/to be availed by GDN Enterprises Private Limited, a wholly owned subsidiary of the Company. 

Optiemus Infracom stock rose 1.17% on the NSE, trading at ₹661.

MacQuarie Capital and group of investors will visit Zydus Lifesciences’ Biotech plant on Friday, September 20, 2024

Zydus Lifesciences stock trades flat on the NSE at ₹1,120.75

Inviting global companies to invest in India’s “green transition”, Prime Minister Narendra Modi on Monday said India was the “best bet” in the 21st century.

“India’s diversity, scale, capacity, potential, and performance are unique. So I say Indian solutions for global applications. The world is understanding this fully. Today, the entire world feels that India is the best bet in the 21st century,” PM Modi said while addressing the inaugural function of the 4th edition of the Global RE-Invest summit held at Mahatma Mandir.

Saboo Sodium Chloro Limited’s management is evaluating a strategic structuring of hospitality assets into a fully owned subsidiary and thereafter publicly listing Samskara Resorts. 

Saboo Sodium stock jumps 12.65% on the BSE to ₹32.60.

Adani Power shares traded at ₹675 on the NSE, higher by 6.56% and Adani Green Energy stock jumped 7.56% to ₹1,923.45.

Adani Power secured a letter of intent (LoI) from Maharashtra State Electricity Distribution Company Limited (MSEDCL) to supply 6600 MW solar and thermal power for 25 years. Of this, 5GW solar power will be supplied by Adani Green Energy and Adani Power will supply 1496 MW thermal power, with both companies signing separate power purchase agreements, a statement from the Adani Group said.

Natural Gas prices have been increasing rapidly over the last three weeks. The Natural Gas Futures contract on the Multi Commodity Exchange (MCX) made a low of ₹156.70 per mmBtu in the last week of August and surged about 30 per from there to make a high of ₹202.4 last week. It has come off from there and is currently trading at ₹191 per mmBtu.

Bank Nifty index has risen well above the psychological 52,000 level. It is currently trading at 52,105, up 0.32 per cent. The advances/declines ratio is at 6:6. This gives a mixed picture.

Top gainers on the NSE as at 12 noon:

M&M (1.42%), NTPC (1.26%), Shriram Finance (1.17%), Eicher Motors (1.16%), Hindalco (1.08%)

Top losers:

Bajaj Finance (-2.85%), Hindustan Unilever (-2.68%), Bajaj Finserv (-2.19%), SBI Life (-1.44%), Britannia (-1.12%)

Stocks advanced on BSE at 12 noon on September 16, 2024, were 2,053 against 1,865 stocks that declined, and 144 remained unchanged. Total stocks traded were 4,062. The number of stocks that recorded a 52-week high was 330, and those that hit a 52-week low was 28. 

A total of 373 stocks traded in the upper circuit, and 194 in the lower circuit.

Mahindra launches All-New Veero, Redefining the LCV<3.5 t segment; Prices start at ₹ 7.99 Lakh

M&M shares rose 1.46% on the NSE, trading at ₹2,779.

GHCL has received a scrutiny notice on September 16, 2024 from GST department, Maharashtra for the financial year 2020-21. In the said notice, department alleged that the Company has made excess claim of ITC (Input Tax Credit) of Rs. 17.34 lacs and advised to file reply within 15 days from the receipt of the letter.

Shares trade flat on the NSE at ₹695.

Torrent Power commits investments of over Rs 64,000 crores at ‘RE-Invest 2024’

Stock rose 1.42% on the NSE, trading at ₹1,787.95

Sellwin Traders Ltd has entered into Memorandum of Understanding with SDF Productions Pvt Ltd, an agri-export company specializing in spices, pulses, pulp, rice, tea, fruits, and vegetables.

AGS Transact Technologies announced strengthening security measures across 26,000+ ATMs in its network. The company has started implementing the latest security upgrades released by GMV, a Europe-based global leader in advanced technology solutions.

Shares trade flat on the NSE at ₹110.99

Cressanda Retail Solutions Private Limited (formerly known as Cressanda Food Solution Private Limited) (“Cressanda Retail”), has entered into a distributorship with Patanjali Peya Pvt. Ltd. This distributorship covers the distribution of the Divya Jal brand of packaged drinking mineral water across the state of West Bengal, as well as specifically within the Railway zones of South-Central and Southern Railways.

Cressanda Solutions stock surges 4.96% on the BSE, trading at ₹15.46

HAL is in receipt of notices from NSE and BSE for imposing the penalty of Rs. 11,800/- each, for the delay in submission of voting results of 61st Annual General Meeting under Regulation 44(3) of the SEBI (LODR) Regulations, 2015 in XBRL mode.

Shares trade flat on the NSE at ₹4,610.40.

Nifty 50 has begun the week on a positive note. The index has risen and is now trading at 25,427, up 0.28 per cent. The advances/declines ratio is at 34:16.

This keeps the bias positive. The US Federal Reserve meeting outcome on Wednesday will be an important event to watch this week. It can set the trend for the equity markets going forward.

Crude oil futures traded flat on Monday morning following weak economic data from China and amid expectations of an interest rate cut by the US Federal Reserve later this week.

At 9.56 am on Monday, November Brent oil futures were at $71.58, down by 0.03 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $67.78, up by 0.04 per cent

Shares of Bajaj Housing Finance were listed on the NSE and BSE at ₹150, a premium of 114.2% against the issue price of ₹70. The stock surged to hit ₹160.92 on the BSE, and ₹161 on the NSE after its market debut.

Apollo Micro Systems has received orders from Economic Explosives Ltd and ARDE- Defence Research and Development Organisation (DRDO) worth ₹4.70 crore. 

Apollo Micro Systems stock rises 2.68% on the NSE, trading at ₹110.

Indian equity markets opened on a positive note on Monday, September 16, 2024, buoyed by strong global cues and continued foreign institutional investor (FII) inflows.

The BSE Sensex opened at 82,985.33, up from its previous close of 82,890.94, while the NSE Nifty started the day at 25,406.65, higher than Friday’s close of 25,356.50.

The market also welcomed the listing of Bajaj Housing Finance, which debuted on the exchanges after receiving bids worth ₹3,80,000 crore for its ₹6,560 crore IPO.

Specialised engineered steel products manufacturer, Goodluck India Limited, on Monday, announced inauguration of its ₹210 crore hydraulic tubes manufacturing plant, having an installed capacity of 50,000 mt, at Bulandshahr in Sikandrabad. 

The highly specialised hydraulic tubes, which find applications in construction machinery, light commercial vehicles and other industrial equipments, will act as a replacement for seamless tubes and help substitute imports. 

Navin Jindal promoted Jindal Steel (JSPL) and Jindal Renewables (JRPL) on Monday announced the signing of a Memorandum of Understanding (MOU) for implementing the country’s biggest green hydrogen project in the steel sector. The MoU outlines JSPL’s plan to integrate green hydrogen into its Direct Reduced Iron (DRI) units in Angul, Odisha. 

“This initiative represents a significant leap towards low emission steel production,” JSPL said in a statement. 

The rupee appreciated by 5 paise to 83.87 against the US dollar in early trade on Monday supported by weakening of the American currency in the overseas market and significant foreign fund inflows.

Forex traders said market participants are eagerly awaiting cues from the US Fed policy on Wednesday, with a rate cut all but certain. However, the magnitude of the cut remains uncertain.

Bajaj Housing Finance Ltd.’s shares are set to begin trading on Monday following an initial public offering that was oversubscribed by more than 60 times.

The unit of India’s largest shadow lender, whose IPO raised ₹65.6 billion ($781 million) in the nation’s biggest deal so far this year, drew bids exceeding $39 billion last week. That’s more than 1 per cent of the country’s gross domestic product. Shares were sold at ₹70 each. Trading begins at 10 am in Mumbai.

Route Mobile Limited has announced that its promoter entity, Proximus Opal S.A., has divested a 6.03% stake in the company through an Offer for Sale (OFS), in addition to the 1.95% sell down that was completed on 26 July 2024, to comply with the minimum public holding requirement of 25%. 

Route Mobile shares declined 1.07% on the NSE at ₹1,677.40

SMRC Automotive Holdings Netherlands B.V. has approved to execute a Joint Venture Agreement with Hamakyorex Co. Ltd, Japan. SAHN B.V., is a wholly owned subsidiary of Samvardhana Motherson International.

Samvardhana Motherson International shares trade flat on the NSE at ₹192.06

Biotechnology Industry Research Assistance Council (BIRAC), a Government of India enterprise, conferred the “BIRAC Innovator Award 2024” to Wockhardt’s Chairman, Dr. Habil Khorakiwala. On his behalf, the award was received by the inventor, Dr. Mahesh Patel (Chief Scientific Officer - Drug Discovery Research) during “Global Bio – India 2024” event held in New Delhi.

Wockhardt shares trade flat on the NSE at ₹1,013.

Infosys announced its collaboration with the Life Insurance Corporation of India (LIC) to spearhead its digital transformation initiative called DIVE (Digital Innovation and Value Enhancement). 

Infosys shares trade flat at ₹1,944.25.

LIC shares trade flat at ₹1,037.25

Revolt Motors announced its entry into the Sri Lankan market. In partnership with Evolution Auto Pvt Ltd, Revolt Motors is set to revolutionise the country’s mobility landscape by offering advanced and performance-driven electric motorcycles designed to cater to diverse rider needs.

RattanIndia shares surge 3.26% on the NSE, trading at ₹82.61

Top gainers on the NSE as at 9.30 am:

Adani Enterprises (1.80%), Hindalco (1.52%), NTPC (1.32%), Grasim Industries (1.09%), Tata Steel (0.96%)

Top losers:

Hindustan Unilever (-2.17%), Britannia (-1.57%), Hero Motocorp (-0.75%), Nestle India (-0.45%), SBI Life (-0.43%)

Jindal Steel (JSPL) and Jindal Renewables (JRPL) have announced a Memorandum of Understanding (MOU) to implement India’s biggest investment in green hydrogen. 

The MOU outlines JSPL’s plan to integrate green hydrogen into its Direct Reduced Iron (DRI) units in Angul, Odisha. In the first phase, Jindal Renewables will develop a green hydrogen generation capacity of up to 4,500 tons per annum set to commence by December 2025. In addition, the project will also entail supply of 36,000 tons of oxygen per annum that will be used in the Angul steelworks. JRPL will also be supplying 3GW of renewable energy to JSPL’s facilities reducing the steelmaker’s dependence on coal fired energy by 50% in the next 2-3 years. This integration of green energy is expected to drastically lower the company’s carbon footprint.

Jindal Steel shares trade flat on the NSE at ₹1,033.85

BSE Sensex traded at 83,022.60, marginally higher by 131.66 pts or 0.16%, and Nifty 50 traded at 25,392.20, up 35.70 pts or 0.14% as at 9.21 am.

Delhivery said it is expanding its cross-border services with a strategic partnership with Teamglobal Logistics, a leader in the fast-growing ocean freight sector, offering transportation services between all major international cargo centers using a combination of land, sea and air modes.

This strategic partnership will provide an expanded reach of over 120 countries for Delhivery’s Less than Container Load (LCL) service. Delhivery, in turn, will enable in-land services of its Part Truckload (PTL) shipping solution within India to Teamglobal with its reach of 18,700-plus pin codes.

Crude oil futures traded higher on Monday morning as the market hoped for an interest rate cut by the US Federal Reserve later this week. At 9.16 am on Monday, November Brent oil futures were at $71.69, up by 0.11 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $67.92, up by 0.25 per cent. September crude oil futures were trading at ₹5786 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹5770, up by 0.28 per cent, and October futures were trading at ₹5729 against the previous close of ₹5721, up by 0.14 per cent.

Indian benchmark indices Sensex and Nifty 50 are likely to open higher, as trend in GIFT Nifty suggest a positive start for the broader index. Asian markets were trading firm. US markets closed higher on Friday as investors expecting bigger interest rate cut by the Federal Reserve next week. The Dow Jones Industrial Average rose 297.01 points, or 0.72%, to 41,393.78, the S&P 500 gained 30.26 points, or 0.54%, to 5,626.02 and the Nasdaq Composite gained 114.30 points, or 0.65%, to 17,683.98. Indian equity indices ended marginally lower with Nifty at 25,350 on September 13. At close, the Sensex was down 71.77 points or 0.09 percent at 82,890.94, and the Nifty was down 32.40 points or 0.13 percent at 25,356.50.

Aarti Drugs has informed that its buyback offer will remain open till September 19, since September 18 is a holiday.

SMRC Automotive Holdings Netherlands B.V. (“SAHN B.V.”), a subsidiary of Samvardhana Motherson International has approved a Joint Venture Agreement with Hamakyorex Co, Japan., in which Motherson ‘s arm will hold the majority 51% stake.

Motherson and Hamakyorex have an existing strategic partnership with both parties having 50% shareholding each. This was established in 2019 and is engaged in the business of finished vehicle logistics in India. On the back of the ongoing successful partnership in

India both parties have decided to enter into another partnership. It is being setup to conduct comprehensive logistics operations and provide a range of related services, including third-party logistics (3PL), warehousing, packaging, and import/export (EXIM) solutions, to various industries in Japan or other locations as mutually agreed between the parties.

Systematix Corporate Services, a BSE-listed integrated financial services firm announced raising Rs 103.12 Crores through preferential allotment of equity shares at Rs 1531 per share.

The funds raised will fuel strategic initiatives across Systematix’s diverse business verticals, including the launch of two Alternative Investment Funds (AIFs) - Category I and Category III, scaling the Margin Trading book, Strengthening the Wealth Management, Capitalising the Institutional and HNI/Retail broking divisions and Accelerate the growth of investment banking and equity capital market businesses.

Silver rose to approximately $31 as the dollar index fell below 101 for the third consecutive day amid rising expectations that the Federal Reserve will slash interest rates more forcefully at this week’s policy meeting. According to CME’s FedWatch Tool, markets are now pricing in a 59% possibility that the Fed will deliver a greater 50 basis point rate decrease on Wednesday, up from 25% a month ago, while the odds for a moderate 25 basis point reduction are 41%. Those forecasts came despite the fact that crucial inflation readings for August were hotter than expected last week, despite the fact that the most recent jobs data showed symptoms of a sluggish labour market. Investors are also looking forward to Tuesday’s US retail sales and industrial production data for fresh economic clues. 

Gold soared beyond $2,585, reaching record highs, aided by a weaker dollar and lower bond yields amid rising prospects of an aggressive US interest rate decrease this week. Fed fund futures show that investors are increasingly betting on the Federal Reserve to drop rates by 50 basis points, with markets pricing in a 59% possibility, while the odds for a moderate 25 basis point cut stand at 41%, according to CME’s FedWatch Tool. This comes after a weekly job report that showed significant weakness in the labour market, as demonstrated by dismal August payroll figures. Recent data also show that US inflation is heading downward, while some stickiness persists.

Spot gold prices hit fresh record high on Friday and Spot silver hit 2-weeks high amid growing optimism of lower interest rates by the US Federal Reserve. Weakness in the dollar and fall in global treasury yields supported the bullions to trade higher. Further, strong inflows into Gold ETF also strengthened the bullishness in the metal.

Dollar index traded lower amid resurgence of 50 bps interest rate cut by the Fed in its September meeting. Dovish comments from a Fed member has caused a shift in market expectation. As per the CME Fed-Watch tool the probability of 50 bps rate cut in September has gone to 59% from 30% a day ago. Meanwhile, rise in US consumer sentiments to its highest level at 4-month limited the downside in the dollar.

US treasury yields moved lower after the US prelim UoM inflation expectation dipped to 2.7% against previous reading of 2.8% indicating further scope for lower interest rate.

NYMEX crude oil prices failed to capitalize its gains and edged lower as US oil production slowly resumes after hurricane. Further, less than expected rise in demand forecast in the coming quarter and 2025 by IEA also weighed on the oil prices.

Base metals moved higher on signs of improved demand form China. Increasing premium of refined metal in China and depleting stocks in SHFE supported the metal prices to hold its gains. Further, a sudden surge in electric vehicle sales has also supported its gains. Additionally, growing prospects of 50 bps interest rate cut by the US Federal Reserve in September has fueled the rally in base metals.

NYMEX natural gas pared all its gains and edged lower after rallying to its 2-month high driven by higher demand forecast and reduced output due to Hurricane Francine, which forced producers to cut back.

Deepak Jasani, Head of Retail Research at HDFC Securities says Indian markets could open mildly higher, in line with mixed Asian markets today and positive US markets on Sept 13

Prashanth Tapse, Senior VP (Research), Mehta Equities 

Bajaj Housing Finance is set to list on Monday, September 16, 2024, after receiving Rs 3,80,000 crore worth of bids for its Rs 6560 crore IPO, with the grey market premium (GMP) remaining above 100%. The week ahead promises action on Dalal Street, with seven new public issues and 13 stock exchange debuts. Gift Nifty is racing towards record highs, while investor optimism builds ahead of the Federal Reserve’s expected interest rate cut. Key stocks in focus include Wipro, Persistent Systems, and LTTS, with Nifty and Bank Nifty offering attractive trading opportunities.

The consumer durables industry witnessed a strong sales uptick for washing machines, air-conditioners and LED TVs during the Onam festival period. Some of the leading brands said they witnessed strong double-digit growth during this period led by higher demand for the premium segment, making them bullish about the upcoming festivities that end with Diwali. Industry growth rate, which was flat last year, is also expected to be around 15-20 per cent in terms of value.

The sustained uptick in equities has given a fillip to margin trading facility (MTF), a product offered by brokers that allows up to 5x leverage to those trading in the cash market.

The MTF book has swelled to ₹80,000 crore, a growth of over 55 per cent in the past eight months, according to estimates.

The stock of Sun TV Network (₹825.25) posted a gain last week, particularly due to the rally on Friday. While the stock saw a decline in August, it has largely been oscillating in a range so far this month.

Nifty 50 (25,357) and Bank Nifty (51,938) appreciated by a considerable 2 per cent and 2.7 per cent, respectively, last week. Below is the analysis of futures and options data of both the indices.

BSE 500 has risen 3.17 times in the last 10 years. If you thought that was good, here is some interesting data. In this same period, the BSE SME IPO index, which tracks the companies in the SME segment, has risen a whopping 110 times till September 11, 2024. Much of the gains are in the last three years, post Covid, when the index rose 16 times compared with the BSE 500 index’s 1.4 times rise.

India is witnessing a structural increase in the consumption of natural gas on the back of the Union government’s (GoI) planned and sustained push to increase the share of gas in India’s energy mix to 15 per cent by 2030, from the current 6.7 per cent. Efforts are on to stimulate both supply and demand in this space. 

The IPO of Northern Arc Capital Ltd (NACL), a systemically important non-deposit taking NBFC, is open for subscription from September 16 to 19. The issue size is ₹777 crore, with a fresh issue of ₹500 crore. NACL is a professionally-run company with no identifiable promoters. A few institutional investors are set to pare their stake.

Declining crude oil prices has been in the news for quite some time now. After having started the down move in early July, crude oil prices extended the decline in September. Brent crude oil futures marked a low of $68.7 a barrel last week, the lowest since December 2021 and WTI (West Texas Intermediate) futures marked a low of $65.3 a barrel, the lowest since May 2023. Year-to-date, the former is down 8.6 per cent and the latter has lost 4.3 per cent.

Here is what the charts say about the shares of Linde India, Prestige Estates Projects and Sundram Fasteners

The dollar index remained in a narrow range all-through last week. Indeed, the index has been stable, and range bound over the last three weeks. This clearly indicates that the market is waiting to see the outcome of the US Federal Reserve meeting on Wednesday this week.

Never have so many depended so much on so few (just one company) – that was how we had termed the dependence of the global stock market rally hinged to the fortunes of Nvidia in our article ‘Nvidia and its parabolic growth’ published in February this year. Fast forward to today, this theme has only got stronger.

The stock idea that we have for you today is Blue Star. The stock has surged over 9 per cent last week and has closed on a strong note. There is an inverted head and shoulder pattern on the chart. This is a bullish pattern. It indicates that the share price can go up in the coming days.

Reliance Industries led the chart of the top-10 most valued firms followed by TCS, HDFC Bank, Bharti Airtel, ICICI Bank, Infosys, SBI, Hindustan Unilever, LIC and ITC. 

The Indian benchmark indices, #nifty50 and #Niftybankindex, have seen a strong rise last week. That keeps intact the overall uptrend.

The Indian benchmark indices opened the week on a weak note, but then managed to surge in the second half of the week. The Sensex, Nifty 50 and the Nifty Bank indices were all up over 2 per cent. This rise has reduced the danger of the fall that we had cautioned last week.