Sensex tanks 720 pts from day's high, ends 125 pts down; Nifty PSB drops 3%

In a volatile session on Dalal Street, the benchmark indices tumbled from record high levels to snap their three-day winning run amid losses in RIL, IT stocks and select banking counters. Despite a firm global market sentiment, the Indian indices settled in the red as profit taking ensued following a steep rally in the indices which saw them hitting significant landmarks. 

After touching a record high of 59,737, the BSE barometer Sensex plunged 721 points from the high to end at 59,016, down 125 points. At the same time, its NSE counterpart Nifty50 settled the day 44 points down at 17,585. The 50-pack index had touched record peak of 17,793 in morning session. However, on the weekly basis, the benchmark indices gained, thus taking their winning run to the fourth straight week.

The fall was more pronounced in the broader markets. The BSE Midcap index sank 1.14 per cent and BSE Smallcap index 1.06 per cent, thus, underperforming benchmark Sensex. Overall, the advance-decline ratio on BSE stood at nearly 1:2, indicating that for every one share that rose, two declined.

Sectorally, PSU Bank index tanked the most among all sectors, reversing strong gains that were seen on Thursday amid expectations that FM Nirmala Sitharaman would announce National Asset Reconstruction Company Ltd (NARCL) that would acquire bad loans in an attempt to resolve them. While the announcement did come, investors preffered to take profits off the table, pushing the index 2.96 per cent lower.

It was closely trailed by Nifty Media & Realty that shed 2.38 per cent and 2.35 per cent, respectively. On the other hand, Nifty Media, Nifty Financial Services, Nifty Bank and Nifty Private Bank were the gainers. Nifty Auto setlled the day unchanged.


MARKET VIEW :: Cut in small & midcap indices weakened market breadth

While the pace of vaccinations and encouraging export data helped Bulls get closer to the 60K mark amidst the FTSE & MSCI rebalancing of flows, profit taking took away all the gains ahead of the GST Council Meet. Even as the BFSI biggies held fort today, the cut in the Small & Midcap indices weakened market breadth as was evident in the Advance-Decline ratio at close today.

-- S Ranganathan, Head of Research at LKP securities

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

Index closed a week at 17586 with gains of more than one percent and formed a bullish candle on the weekly chart. On Friday session index witnessed good profit booking resulting formed dark cloud cover sort of candle pattern on daily chart which considers to be a bearish reversal pattern by nature so any break below 17530 zone we may see more drag down the index, immediate support is still placed at 17500 followed by 17430 zone & resistance is coming near 17650-17750 zone also profit booking is suggested around mention hurdle zones.


What dragged D-Street lower today?

Despite a strong opening, domestic indices gave up early gains to trade flat driven by profit booking and mixed global sentiments. PSU Banks were heavily wounded by profit booking although the government approved a guarantee of Rs.30,600 crores to the National Asset Reconstruction Company Ltd with an aim to clean stressed assets from the banking sector. Global markets traded cautiously bracing for the Fed Reserve and Bank of England policy meetings next week.

-- Vinod Nair, Head of Research at Geojit Financial Services

IDFC slips over 1% after board approves divestment of MF business

>> The Board of Directors of IDFC Limited and IDFC Financial Holding Company Limited at their meetings held today i.e. September 17, 2021, have inter alia, considered and approved to initiate steps to divest its mutual fund business subject to requisite regulatory approvals, as applicable. 

eClerx gains 4% on buyback approval

>> eClerx board approves up to Rs 303 cr buyback at Rs 2,850/sh

>> eClerx revises Buyback price to Rs 2,850/sh from Rs 3,200/sh approved in August 13 board meet

IndiGo surges 10% on strong aviation data for August

>> Aug domestic air passenger traffic up 136% YoY at 6.7 mn

Poonawalla Fincorp reverses losses, ends 3% higher

>> The stock had hit 5% lower circuit in morning deals after the company's MD stepped down on Thursday

Market bread favours sellers

>> Advance-decline ratio at nearly 1:2, suggesting that for every one share that rose, two declined

Volatility on the rise

>> India VIX jumps 5.68% to 15.23

Broader markets underperform benchmark; Nifty Midcap tanks over 1%

Nifty Media index best sectoral gainer on NSE

>> Here are the top gainers & losers from the pack

Nifty PSU Bank index worst sectoral performer on NSE

>> Index tumbled 3%; here are the top losers from the pack

Sector Watch :: Nifty PSB index falls 3%; Media up 1%

Sensex Heatmap

Top gainers: Kotak Bank, HDFC Bank, Airtel, Mruti Suzuki

Top losers: Tata Steel, SBI, TCS, RIL

CLOSING BELL :: Nifty50 gives up 17,600

CLOSING BELL :: Sensex slips 125 pts, holds 59K

Gold prices rebound but set for weekly loss as dollar holds ground

Gold prices rebounded on Friday after sliding to an over one-month low in the previous session, though a firm dollar set the metal on course for a weekly decline as investors awaited next week's U.S. Federal Reserve policy meeting. Spot gold rose 0.5% to $1,762.55 per ounce by 0716 GMT, while U.S. gold futures GCv1 gained 0.4% to $1,762.80. The precious metal has declined 1.6% this week. READ MORE

Global markets :: European shares set for weekly gains as travel stocks soar

European stocks were on track for weekly gains on Friday as news that Britain was mulling easing travel restrictions boosted airlines and hotel groups, while a rebound in luxury stocks also supported the main indexes.

The pan-European STOXX 600 index rose 0.5%, reversing losses earlier this week on worries about slowing global growth and tighter regulation of Chinese firms.

France’s CAC 40 and Spain’s IBEX outperformed regional peers with a 1.0% and 1.2% gain, respectively.

Source: Reuters

Vaccination in fast lane :: India administers 1 cr jabs till 1.30 PM

Indian defense supplier Data Patterns nears $100-mn IPO filing: Report

The Chennai-based company, backed by former Blackstone Inc. senior fund manager Mathew Cyriac, plans to lodge the listing documents with the Indian securities regulator as soon as next week, the people said. The firm intends to list in Mumbai this year, said one of the people, who asked not to be identified as the information is private. READ MORE

Sensex Heatmap at this hour

ALERT :: Profit-booking deepens! Sensex gives up 59, 000

Surya Roshni soars 11%, hits new high on strong growth outlook

Shares of Surya Roshni edged higher by 11 per cent to Rs 731.20, also their new high on the BSE, in intra-day trade on Friday on the back of heavy volumes and amid a strong growth outlook. In the past seven trading days, the stock has zoomed 43 per cent, as compared to a 1.7 per cent rise in the S&P BSE Sensex. READ MORE

ALERT :: eClerx Services approves share buyback worth Rs 303 crore

>> The buy back price is of Rs 2,850 per share and the size is of upto 3.05% stake

Collection recovery in securitisation yet to reach March 2021 levels

The performance of 143 rated securitisation deals showed the recovery has improved sentiments and supported the loan performance in June-July 2021. Overdue loans in softer delinquency buckets started performing with the gradual lifting of Covid-19 pandemic-related restrictions and this trend was prominent in secured asset classes. READ MORE

Nifty Realty stocks tank in afternoon trade

China's oil consumption seen peaking around 2026: Sinopec exec

Sinopec's oil peak forecast echoes a prediction by consultancy Rystad Energy in April that cited rapid adoption of electric vehicles as the main cause for global oil demand to peak over the next five years. READ MORE

Focus now on faster NPA resolution to ensure NARCL's success: Analysts

Finance Minister Nirmala Sitharaman has announced setting up of a National Asset Reconstruction Company Ltd (NACRL), or a ‘Bad Bank’, with an intent to resolve bad loans within a period of five years. While the move is a 'structurally positive development' as the focus remains on faster resolution of stressed assets, analysts believe the move is a little “late in the cycle.” READ MORE

CESC registers new high post 1:10 stock split, surges 10%

Shares of CESC rallied 10 per cent to Rs 96.75 on the BSE in intra-day trade on Friday after the 1:10 stock split came into effect. The company's board had fixed 17 September, 2021, as the record date for the stock split in the ratio of 1:10, i.e. a equity share with the face value of Rs 10 to be sub-divided into 10 equity shares with a face value of Re 1 each. The stock of electric utilities company surpassed its previous high of Rs 92.61 (adjusted to stock split) touched on 11 January, 2018. READ MORE

Nifty PSU Bank index worst sectoral performer on NSE

>> All constituents in the red

ALERT :: GST Council meet begins

>> GST Council extends concessions for COVID-19 related drugs till December 31
Source: TV reports

Mid-market view | Likhita Chepa, Senior Research Analyst, CapitalVia Global Research

The Indian benchmark indices started with a gap up after the positivity in global sentiments. Indian shares scaled record highs today as banking stocks extended gain from the previous session after the country’s finance minister laid out details for the establishment of a bad bank. Traders may get support as the Reserve bank of India said the inflation trajectory is coming down faster than anticipated. Our research suggests that 17650 is an important level in the market. If the market sustains above 17650, we can expect the market to trade till the level of 17850-17900. Technical indicators also support positivity in the market.

Near-term risks persist for private investments, says RBI study

According to the RBI study the economy had been witnessing sluggish investment intentions even before Covid. This was reflected in the lower number of new announcements of projects as well as elongation of the life cycle of existing projects. The envisaged capex, based on the projects sanctioned by banks/FIs, indicates a decline from Rs 94,227 crore in FY21 to Rs 68,469 crore in FY22. READ MORE

NARCL boost: Select PSU Banks can rally up to 25%; SBI may hit Rs 500-level

Likely target: 2,660
Upside potential: 3%
While the index fell short by one point to conquer the resistance of “Head and Shoulder” placed at 2,581 level, the momentum and direction seems confident in conquering the said mark in up-coming trading sessions. And when that happens, the breakout rally can lead the index to 2,660-level, which is its next obstacle, according to the daily chart. The closing basis support stays at 2,470. READ MORE

Uncertain call remains for Vodafone Idea despite govt's relief package

To save Vodafone Idea, the government’s challenge was to determine how much fiscal risk it was willing to absorb. This was why the telecom package was delayed by a week; the Department of Telecom­munications (DoT) and the Ministry of Finance (MoF) argued over this point. The decision went down to the wire pretty late on Tuesday night before the Cabinet met on Wednesday morning to approve the package of nine reforms for the sector, five procedural changes plus four relief measures. READ MORE

Sector Watch :: All sectors apart from Nifty Financial Services in red

IDFC board approves divestment of mutual fund business

>> The boards of IDFC and IDFC Financial Holding Company have authorised respective strategy & investment committees to take necessary steps, including appointment of investment banker, for the same

Aviation shares in focus; IndiGo hits record high, SpiceJet soars 7%

Shares of aviation companies were in focus with InterGlobe Aviation, the parent firm of IndiGo airlines, recording a 52-week high at Rs 2,155. The stock has so far rallied 9 per cent on the BSE in intra-day trade on Friday, and in the process has surpassed its previous high of Rs 2,023.60 touched on 15 September, 2021. Shares of SpiceJet, India’s second-largest private airline, have also surged 8 per cent to Rs 81.95 amid heavy volume. The trading volume at the counter jumped over three-fold with a combined 15 million equity shares changing hands on the NSE and BSE. In comparison, the S&P BSE Sensex was up 0.95 per cent at 59,702 at 10:55 am. READ MORE

ALERT :: Sensex off record high levels

BUZZING :: Indigo rises over 9% in trade

>> Airline's passenger load factor in August was at 74% vs 66.2% in July, as per DGCA data
>> Market share in August stood at 57% vs 58.6% in July

Zerodha Founder & CEO Nithin Kamath says stop-loss market orders won't be available for options from Sept 27

Broader markets underperform benchmarks in morning trade

NIFTY METAL worst sectoral performer, down over 1.5%

HDFC Bank, Bajaj Finance, Kotak Mahindra Bank top contributors to gains in Sensex

Poonawalla Fincorp hits 5% lower circuit for second day as MD resigns

Shares of Poonawalla Fincorp (formerly Magma Fincorp) were locked in the lower circuit for the second straight day, down 5 per cent at Rs 163.55 on the BSE on Friday, after resignation of Abhay Bhutada, managing director (MD) of the company. The stock of the non-banking finance company (NBFC) was down 10 per cent in the past two trading days. It had hit a 52-week high of Rs 199.65 on August 18, 2021. READ MORE

BUZZING :: IRCTC claims Rs 4,000-mark

>> Stock hits new high of Rs 4,013.45

Stock of this telecom services provider has zoomed over 100% in 11 days

Shares of Vodafone Idea continued their northward movement and were up 10 per cent at Rs 12.37 on the BSE in the intra-day trade on Friday. The stock has zoomed 39 per cent in the past two trading days after the government announced relief package for the telecom sector. On Wednesday, the Union Cabinet announced key telecom reforms, including moratorium of telecom dues both adjusted gross revenue (AGR) and Spectrum for 4 years, effective October 2021, which is a key cash flow relief measure for Vodafone Idea. READ MORE

PSU banks trade mixed note after govt unveils NARCL plan; SBI hits new high

Shares of public sector banks (PSBs) were trading mixed on the bourses on Friday after the government approved a guarantee of Rs 30,600 crore to be provided for the security receipts issued by the National Asset Reconstruction Company (NARCL) to buy bad loans of lenders. On Thursday, most the PSBs rallied between 5 per cent and 10 per cent in anticipation of the announcement. READ MORE

MARKET VIEW | V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The market is now driven by momentum with valuations on the back burner. Even FIIs  who were skeptical about valuations and sold heavily in July have come back strongly and are chasing the momentum. FIIs have invested Rs 5344 cr in the cash market during the last three days. Nifty has now appreciated by around 10000 points from the March 2020 lows. Even die-hard bulls would not have foreseen such a ferocious rally. Now the bulls are unlikely to let go off their grip on the market till 18000 on the Nifty/ 60000 on Sensex is reached. In 2021, till date, the Nifty IT has been outperforming the Nifty while Bank Nifty has been underperforming. There is a possibility of change in leadership of the market away from IT, perhaps to Banks. The announcement of the 'bad bank' road map and govt guarantees for security receipts to be issued by the NARCL will improve the prospects of banks, going forward. 

Banking stocks trade mixed

>> The Union Cabinet approved a government guarantee of up to Rs 30,600 crore for security receipts to be issued by National Asset Reconstruction Company Ltd

Zee Entertainment slips as board backs former directors

>> The company backed its two independent directors Ashok Kurien and Manish Chokhani, who had resigned this week after two of its largest shareholders sought their removal

>> The company has also "strongly condemned" the allegations levelled by certain proxy advisory firms against its former non-executive directors

Biocon rises 1.5% on offering stake in subsidiary to Serum Institute

>> The company said it will offer around 15 per cent stake to Serum Institute Life Sciences at a post-money valuation of about USD 4.9 billion. Serum Institute Life Sciences (SILS) is a subsidiary of Serum Institute of India (SII)

Hero MotoCorp in the green as firm looks to hike prices

>> The country's largest two-wheeler maker Hero MotoCorp on Thursday said it will increase the price of its entire model range by up to Rs 3,000 from September 20. The price hike has been necessitated to offset the impact of steadily increasing commodity prices, the company said in a statement

Poonawalla Fincorp hits 5% lower circuit as MD resigns

>> Managing Director Abhay Bhutada stepped down from the company on Thursday, a day after being barred from the securities markets by regulator Sebi for alleged insider trading. Poonawalla Fincorp Ltd Group CEO Vijay Deshwal will continue to run the operations of the firm, the statement added

Cosmo Films hits 52-week high as firm looks to set up new production line

>> The company will set up of new production line for Biaxially Oriented Poly Propylene Film at Aurangabad, Maharashtra with rated capacity of 67,000 MT annually. The Rs 350 crore investment required for production line will be met via internal accrual, debts

Vodafone Idea extends rally, jumps 5%

>> The stock has rallied nearly 40% in the last four sessions
>> Announcement of a relief package by the govt has sparked a rally in shares


Sector Watch :: Most sectors in green; Nifty Metal, Media, PSU Bank only losers

Broader markets open positive; Nifty Midcap 100 rises 0.35% in early trade

Sensex Heatmap :: Top gainers & losers at opening trade

>> TOP GAINERS: ITC, Asian Paints, Bajaj Auto
>> TOP LOSERS: Titan, Infosys

FIRST TRADE :: Nifty50 tops 17,700 for the first time

OPENING BELL :: Sensex hits new high, up 271 points

Commodity Check

Sensex Heatmap :: Top gainers & losers in pre-open trade

Nifty50 above 17,700-level in pre-open session; rises 78.5 points

Pre-open session :: Sensex gains 252 points or 0.4%

Stocks to watch: Biocon, Hero Moto, Poonawalla Fin, TVS Motor, bank stocks

Bank stocks: The Union Cabinet approved a government guarantee of up to Rs 30,600 crore for security receipts to be issued by National Asset Reconstruction Company Ltd (NARCL).
Biocon: Biocon Biologics, a subsidiary of Biocon, on Thursday said it will offer around 15 per cent stake to Serum Institute Life Sciences at a post-money valuation of about USD 4.9 billion. Serum Institute Life Sciences (SILS) is a subsidiary of Serum Institute of India (SII).  READ MORE

Nandish Shah of HDFC Securities recommends Bull Spread on Torrent Power

Bull spread Strategy on TORRENT POWER
Buy TORRENT POWER SEPT 500 CALL at Rs 16.5 & simultaneously sell 520 CALL at Rs 9.5
Lot Size 1500

Market Ahead Podcast, Sept 17: Factors that may guide the markets today

On Thursday, the BSE Sensex climbed the 59,000-mark for the first time, hitting a new high of 59,204. The Nifty50, meanwhile, claimed a new lifetime high of 17,645. Going-forward, market watchers are betting on a swift move towards 20,000 for the Nifty and 66,000 for the Sensex in the long-term.  Listen to the podcast here

Here's why Osho Krishan expects HDFC to reclaim lifetime high soon

HDFCLTD is in a secular uptrend and is heading strongly towards the lifetime high zone. On technical parameters, the stock is placed above all its major exponential moving averages indicating inherent strength and is even placed above the mean of the Bollinger band on the daily time frame. The stock has formed a strong bullish candlestick in the last trading session and is expected to surge higher to reclaim its lifetime high zone in the coming future. READ MORE

FIIs were net buyers; DIIs turn net sellers

BSE bulk deal data for Thursday

Bulk deal on NSE on Thursday

SGX Nifty indicates positive opening

>> At 8:25 AM, the SGX Nifty was at 17,692 levels, up by 0.49 per cent

Rupee edges 2 paise lower at 73.52 against US dollar

The rupee closed marginally lower at 73.52 against the American currency on Thursday, tracking a rebound in the US dollar index. Forex traders said a bullish trend in the domestic equities and sustained foreign fund inflows supported the local unit, but firm crude oil prices and stronger dollar against key currencies weighed on overall sentiment.
At the interbank foreign exchange market, the domestic currency opened flat at 73.51, witnessed an intra-day high of 73.34 and a low of 73.52 against the American currency during day trade. The local unit finally settled for the day at 73.52, down 2 paise over its previous close.
Source: PTI

Oil steady as U.S. storm-hit supply returns slowly

Oil prices barely moved on Friday even as more supply came back online in the U.S. Gulf of Mexico following two hurricanes, with benchmark contracts on track to post weekly gains of around 4% as the output recovery is seen lagging demand.
Source: Reuters

Shares in Asian markets trade mixed

Asian shares steadied in early trading on Friday after losses earlier in the week, but China jitters and global growth concerns weighed on investors' minds, while the dollar sat near a three-week high. The Nikkei 225 in Japan rose 0.5 per cent, while the Kospi in South Korea was mildly below the flat line, and Australia's ASX200 slipped 0.8 per cent. The hang Seng index was up 0.4 per cent.
Source: Reuters

US markets end mostly lower; Nasdaq outperforms

On Thursday, the Dow Jones Industrial Average lost 63 points, after being down as much as 274 points at its low. The S&P 500 fell 0.16%. The Nasdaq Composite was the outperformer, rising 0.13% as Netflix, Microsoft and Amazon all closed in the green. Additionally, the latest unemployment insurance weekly data showed 332,000 first-time jobless claims last week, higher than the estimate of 320,000.

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