Share Market Highlights 12 Sept 2022: Nifty ends near 17,950, Sensex above 60,100; Titan, Tech Mahindra among top gainers
(By Ravi Kant Kumar)
The Indian market extended gains for the third session as benchmarks gained over half per cent in the closing trade on Monday. Even though the indices erased early gains, the broader Nifty50 closed above 17,900, while the Sensex closed around 60,000-mark. IT stocks outperformed the market as Nifty IT rose more than 1.2% on Monday. The rally was also supported by a broader market where in Midcap and Small indices gained around 0.9% and 1.3% respectively. Adani Ports, Titan, Tech Mahindra were among top gainers, while Coal India, Shree Cements, Nestle Indian were among top laggards.
"Domestic economy is witnessing strong vigour and the same is assisting a steady growth in Indian equities. A 15.5% YoY increase in bank credits during August suggests that the economy is recovering rapidly," said Vinod Nair, Head of Research at Geojit Financial Services, in today's market commentary.
Due to rising food prices, domestic inflation figures are predicted to show a gradual rise from 6.7% in July, which could add volatility in the short-term, he said.
"Meanwhile, the world equity market is ignoring the fact that the Fed will retain its aggressive rate hike strategy given high levels of inflation assuming that much is factored in," the expert added.
(By Ravi Kant Kumar)
The Indian market extended gains for the third session as benchmarks gained over half per cent in the closing trade on Monday. Even though the indices erased early gains, the broader Nifty50 closed above 17,900, while the Sensex closed around 60,000-mark. IT stocks outperformed the market as Nifty IT rose more than 1.2% on Monday. The rally was also supported by a broader market where in Midcap and Small indices gained around 0.9% and 1.3% respectively. Adani Ports, Titan, Tech Mahindra were among top gainers, while Coal India, Shree Cements, Nestle Indian were among top laggards.
"Domestic economy is witnessing strong vigour and the same is assisting a steady growth in Indian equities. A 15.5% YoY increase in bank credits during August suggests that the economy is recovering rapidly," said Vinod Nair, Head of Research at Geojit Financial Services, in today's market commentary.
Due to rising food prices, domestic inflation figures are predicted to show a gradual rise from 6.7% in July, which could add volatility in the short-term, he said.
"Meanwhile, the world equity market is ignoring the fact that the Fed will retain its aggressive rate hike strategy given high levels of inflation assuming that much is factored in," the expert added.
Latest Updates
Nifty: Short-term trend is likely to remain strong as long as it remains above 17700
"Nifty started on a positive note following strong global cues. On the higher end, Nifty found resistance before ending with a gain of ~0.60%. The daily momentum indicator RSI remains in the green crossover. The short-term trend is likely to remain strong as long as it remains above 17700. On the higher end, Nifty has resistance at 18000-18100 zone. Support is seen at 17880/17770." - Rupak De, Senior Technical Analyst at LKP Securities.
Nifty outlook: Bears defended key psychological mark of 18000
The Nifty opened on a positive note on September 12 & made multiple attempts to touch 18000 mark throughout the day. The bears, however, defended the key psychological mark yet again; thus making the resistance stronger. As long as the index trades below this level, it is likely to stay in the short term consolidation. As per the internal structure of the recent price action, within the short term consolidation, the index is preparing for a downward move. Thus the index looks poised to test its hourly lower Bollinger Band, which is near 17700 with the potential to slide to 17500 subsequently.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
Nifty, Sensex top gainers and losers
Adani Ports, Titan, Tech Mahindra were among top gainers, while Coal India, Shree Cements, Nestle Indian were among top laggards.
Weak dollar, sustained FII inflows may favour Rupee
USDINR (CMP Rs 79.50 spot):
Indian rupee appreciated by 0.10% today amid weak US Dollar and positive domestic equities. Dollar breached the 108-mark and is trading about 1% lower decline in safe haven appeal on the back of improved global risk sentiments. Euro also surged by 1.3% on reports that Ukraine has retaken some towns and cities in the Kharkiv region which is a setback for Russia. Rupee also gained on FII inflows. FII inflows on Friday surged to Rs. 2,132 crores. Easing bond yields also weighed on Dollar. 10-year US bond yields are trading around -0.63% at 3.2945%. We expect Rupee to with a positive tone as rise in risk appetite in global markets and a weak Dollar may support Rupee. Sustained FII inflows may also favor the Rupee. However, worries over global economic slowdown and recovery in crude oil prices may restrict sharp upside. Traders may also remain cautious ahead of India’s CPI and industrial production data later today. USDINR spot price is expected to trade in a range of Rs 79 to Rs 80.30 in next couple of sessions.
Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas
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Defense sector buzzing on strong order book; BEL favourite
"Defense sector is buzzing currently on the back of a strong order book, orders from GOI under the Ministry of Defense, technological advancements and requirements according to the geopolitical environment and export orders. This gives us a visibility of upto 4-5 years as the country needs to match the international standards. Furthermore, profitability led by higher indigenisation theme, better operating leverage and higher contribution from non government orders should augur well for the margins. Valuations too seem comfortable to us for the entire sector. Therefore we are bullish on the sector, particularly on BEL due to additional positives like a lean balance sheet, better working capital management and emphasis on some non profitable non defense sectors."- Ashwin Patil, Senior Research Analyst at LKP Securities
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Global market advance after Wall Street's end of week rally
Shares climbed Monday in Europe and Asia after last week's strong close on Wall Street snapped a three-week losing streak. Many Asian markets were closed for holidays. US futures rose while oil prices turned higher. Investors are watching for US inflation figures and Chinese economic data this week. The US Labour Department will release its report on consumer prices for August on Tuesday and a report on wholesale prices on Wednesday. On Thursday, Wall Street will get an update on retail sales for August. Germany's DAX climbed 1.3% to 13,2595 while the CAC 40 in Paris gained 1% to 6,273.58. Britain's FTSE 100 was up 1.1% at 7,430.66. The future for the S&P 500 was 0.4% higher while that for the Dow industrials gained 0.3%. PTI
Hindustan Copper to hike copper ore production to 12.2 million tonnes p/a
Hindustan Copper Ltd (HCL) is considering increasing its copper ore production to 12.2 million tonnes per annum by FY29 in its first phase of expansion. The company's copper ore production was 3.57 million tonnes (MT) in FY22. ''HCL has plans to increase its mining capacity from its current level ore production to 12.2 million tonnes per annum in phase-I in next 7 to 8 years,'' the public sector unit said, as per PTI The company further plans to increase its output to 20.2 MTPA after the completion of its first phase capacity expansion plan.
Navin Fluorine International share price at 52-week high
Navin Fluorine International share price jumped over five per cent amid spurt in volume to hit 52-week high of Rs 4636 per share in BSE intraday trade on Monday. Navin Fluorine is a multibagger stock which has clocked nearly 600% return for its shareholders in the last five years
Tata Investment Corporation share price hits 52-week high
Shares of Tata Investment Corporation jumped over seven per cent in BSE intraday to hit 52-week high of Rs 1973.55 per share amid firm market. The counter witnessed a sput in volume by 2.57 times on Monday
Nifty, Sensex firm: IT, bank stocks shine
Indices continue to trade firm on Monday. Nifty at 17,956.20, Sensex at 60,195.81. Tech Mahindra, Axis Bank and Adani Ports top gainers, Coal India, Shree Cement, M&M were among top laggards
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Stocks to buy today: Market expert and IIFL Securities Director Sanjiv Bhasin on Monday said that Nifty50 will climb to fresh all-time high this week. In a special segment ‘Bhasin Ke Hasin Share' aired on Zee Business with Managing Editor Anil Singhvi, he made a prediction that Nifty50 will hit 18600 on Thursday-Friday. Nifty50 had made a lifetime high of 18604.45 on October 19 last year. Full Report
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