KEY HIGHLIGHTS
How Did The Sectoral Indices Fare
Closing Bell: Intense Sell-off
Expiry day jitters were felt by the Indian equity markets, with benchmark indices witnessing their biggest single-day drop in over four months.
The S&P BSE Sensex ended 3% lower at 36,553. The index saw a decline of 1,114 points in today's session. The index declined 2,560 points in the September series. Only five index constituents - HCL Tech, TCS, Reliance Industries, Infosys and Tech Mahindra managed to register gains this series.
The NSE Nifty 50 index too ended 2.9% lower but managed to cling on to the mark of 10,800. The index ended at 10,806, down 325 points. 47 out of the 50 index constituents ended with losses in today's session. The index was down 750 points in the September series. 42 stocks on the index posted losses this series.
This was the first F&O series decline for the Sensex and the Nifty after three successive series gains.
All sectoral indices ended with losses. Nifty I.T. and Nifty Metal were the top sectoral laggards, ending with losses of over 4% each.
Nifty Bank, Nifty Auto, Nifty Media, Nifty Pharma, Nifty PSU Bank and Nifty Realty, all indices fell over 3% each in today's session.
Nifty FMCG was the only index which had some signs of resilience, but ended 1% lower, courtesy selling pressure in the final minutes of trade.
Broader markets too were not insulated from the sell-off. Both Nifty Midcap and the Nifty Smallcap index ended with losses of over 2.5% each.
The India Volatility Index too saw its biggest gain in over a month, ending 12% higher at 23.57.
1,509 stocks on the NSE ended with losses while 327 bucked the trend to post gains.
Sharp Correction In The Nifty Bank
Stock Reaction: J Kumar Infra
The company has received the Letter of Acceptance from the MMRDA for orders worth Rs 49 crore and from the DMRC) for orders worth Rs 41 crore.
The order from MMRDA involves construction of an external facade works for four elevated stations for line 7 of the Mumbai Metro Rail Project.
The order from DMRC too involves construction of external facade works of four elevated stations on Line 2A of the Mumbai Metro Rail Project.
Shares are currently trading 5.3% lower at Rs 99.1, trading at the lowest in over a month.
Buzzing Stock: Tata Motors
- Top laggard on the Nifty 50 index
- Falls as much as 6.9% to Rs 122.3
- Trades at the lowest level in a month
- Down for the fourth straight day
- Longest losing streak in four months
- Has declined 17% in the last four trading sessions
- Today's volumes are 0.7 times higher than its 30-day average
- Breaks below its 200-Day Moving Average of 124.6
- Stock nearing oversold territory with Relative Strength Index (RSI) at 36
- Has nearly halved from its 52-week high of Rs 201.8 on January 15, 2020
- 17 out of the 36 analysts tracking the stock have a buy recommendation
- Return potential of the stock as per Bloomberg data is 6.5%
Buzzing Stock: Shriram Transport Finance
- Down for the second straight day
- Falls as much as 8.7% to Rs 559.5
- Trades at the lowest level in four months
- Has fallen 12% in the last two trading sessions
- Trades below all key Daily Moving Averages
- Today's volumes are 53% higher than its 20-day average
- Stock in oversold territory with Relative Strength Index (RSI) at 28
- Has declined 58% from its 52-week high of Rs 1,331.9
- 33 out of the 42 analysts tracking the stock have a buy recommendation
- Return potential of the stock as per Bloomberg data is 48.1%
All Stocks Of The I.T. Index Decline
Active Stock Options - October Series
- Reliance Industries' 2,200 Put: Premium up 16.7% to Rs 91.8. The contract has added 2.4 lakh shares in Open Interest.
- State Bank of India's 185 Call: Premium down 25.7% to Rs 7.5. The contract has added 7 lakh shares in Open Interest.
- Dr Reddy's 5,200 Call: Premium up 2.4% to Rs 246. The contract has added 97,250 shares in Open Interest.
Buzzing Stock: Petronet LNG
- Down for the seventh straight day
- Longest losing streak since October 2018
- Falls as much as 1.8% to Rs 211.75
- Falls to the lowest level in over five months
- Down 11% in the last seven trading sessions
- Today's volumes are 22% below its 20-day average
- Stock in oversold territory with Relative Strength Index (RSI) at 24.5
- Has declined 28% from its 52-week high of Rs 292 on October 30, 2019
- 34 out of the 41 analysts tracking the stock have a buy recommendation; 1 sell call
- Return potential of the stock as per Bloomberg data is 41.3%
Markets At 2:10 P.M.
- Benchmark indices extend losses; at the day's low
- Nifty down 2.2% at 10,889
- Sensex down 2.3% at 36,802
- Nifty Bank down 2.6% at 20,624
- Nifty Midcap index down 2.1%
- Nifty Smallcap index down 2.3%
- India Volatility Index up 7.6% to 22.58
- Nifty PSU Bank index is the top sectoral laggard; down 3.5%
- Nifty Auto, Nifty Metai, Nifty I.T. fall over 3% each
- Nifty Realty, Nifty Media Index decline over 2% each
- Nifty Pharma down 1.8% while FMCG index recovers from the day's low; down 0.3%
- Bharti Infratel remains the top Nifty gainer; up 3.1%
- Mahindra & Mahindra is the top Nifty laggard; down 5.9%
- 46 out of the 50 Nifty constituents trade with losses
- 1,518 stocks on the NSE trade with losses while 288 are bucking the trend
Money Market Update
The rupee has ended with losses in today's trading session, ending marginally off the lowest point of the day.
The currency ended at 73.91 against the U.S. Dollar as compared to Wednesday's close of 73.57.
The rupee had an intraday low of 73.96 and a high of 73.75 in today's session.
The currency was the fourth worst performing currency in today's session.
Yield on the 10-year government bond ended at 6.005% as compared to Wednesday's close of 5.99%.
Buzzing Stock: Coal India
- Trades at an all-time low
- Among the top laggards on the Nifty 50 index
- Falls as much as 3.3% to Rs 117
- Has gained only thrice in the last 19 trading sessions
- Today's volumes are 13% higher than its 20-day average
- Trades below all key moving averages
- Stock in oversold territory with Relative Strength Index (RSI) at 25
- Has nearly halved from its 52-week high of Rs 217.9 on November 5, 2019
- 21 out of the 27 analysts tracking the stock have a buy recommendation
- Return potential of the stock as per Bloomberg data is 52%
Buzzing Stock: Fortis Healthcare
- Bucking the trend in today's session
- Gains as much as 4.9% to Rs 141.45
- Biggest single-day gain in five months
- Trades at the highest level in over six months
- Up for the third straight day
- Breaks above its 50-Day Moving Average at 135.4
- Today's volumes are double its 20-day average
- Relative Strength Index (RSI) of the stock at 64
- Nearing its 52-week high of Rs 169 on February 7, 2020
- All nine analysts tracking the stock have a buy recommendation
- Return potential of the stock as per Bloomberg data is 16%
Brokerage Reaction: Cholamandalam Investment & Finance
Shares of the non-bank lender are bucking the trend in today's session afte Citi initiated coverage on the stock with a buy rating, terming it as the top midcap NBFC pick.
Citi's Rationale:
- Top midcap pick among NBFCs
- Covid-19 will lower growth, RoE in FY21, we see a recovery to 10% and 16% respectively in FY22E
- Client, geographic positioning to drive NIMs higher
- Multi-product portfolio to help growth recovery
- Clinical execution should help growth recover faster than peers
- See 21% profit CAGR over FY20-22E on lower credit costs
- Better-than-sector growth and asset quality in H2FY21 to be key catalyst
Citi's price target on the stock is Rs 300. Shares gained as much as 2.6% to Rs 235.85, snapping a three-day losing streak.
Auto Index Down For The Fourth Day
European Markets Open Lower
Benchmark indices in Europe snapped a two-day gaining streak, in-line with the weakness seen in global equities. Benchmark indices have declined in four out of the last six trading sessions.
The Stoxx 600 index has opened 1.1% lower with all sectoral indices declining. Travel & Leisure along with energy stocks are leading the losses.
Most Asian markets have ended with cuts between 1-2% while the futures on the Dow Jones are trading lower by 70 points.
Brent crude trades 0.55% lower at $41.54 per barrel while Gold is down 0.4% to $1,856/Oz.
Let's take a look at how benchmark indices in Europe are trading:
- Euro Stoxx 50 down 1.1% at 3,145
- DAX down 1% at 12,522
- CAC down 1.1% at 4,748
- FTSE 100 down 1.2% at 5,830
- IBEX 35 down 1% at 6,588
How Are The Sectoral Indices Faring
Buzzing Stock: LIC Housing Finance
- Among the worst performers on the Nifty midcap index
- Falls as much as 6.1% to Rs 261
- Biggest single-day drop in four months
- Trades at the lowest level in nearly two months
- Down for the sixth straight day
- Longest losing streak since June 2019
- Has declined 14% in the last six trading sessions
- Today's volumes are 11% higher than its 20-day average
- Breaks below its 100-Day Moving Average support at 272.5
- Stock nearing oversold territory with Relative Strength Index (RSI) at 32
- Has declined 46% from its 52-week low of Rs 486.75 on January 21, 2020
- 29 out of the 43 analysts tracking the stock have a buy recommendation; 9 sell calls
- Return potential of the stock as per Bloomberg data is 29.5%
Stock Reaction: Zydus Wellness
The company launched a QIP issue on Wednesday. The floor price of the QIP was set at Rs 1,775 per share, which was a 3.3% premium to Wednesday's closing price.
The board of directors will meet again on September 28 to determine the closure of the QIP and the issue price of the shares to be issued to qualified institutional buyers.
Shares gained as much as 4.3% to Rs 1,788 and have alternated between gains and losses over the last six trading sessions.
Stock Reaction: Panacea Biotech
The company has announced the successful completion of Phase I/II study of its novel, tetravalent recombinant chimeric dengue candidate vaccine, DengiAll.
As per the company, the vaccine indused robust, balanced neutralising antibody responses against all the four Dengue virus stereotypes.
The vaccine was found to be safe and well-tolerated with no serious effects, the company said in an exchange filing.
The company has approached the DGCI to seek an accelerated review of its data to bring DengiAll to the market quickly, the statement said.
Shares recovered from the day's low to gain as much as 3.8% to Rs 196, post the announcement. The stock is up for the second straight day.
Markets At Noon
- Benchmark indices extend losses; trade at the day's low
- Nifty down 1.9% at 10,923
- Sensex down 1.9% at 36,954
- Nifty Bank down 2% at 20,761
- Nifty Midcap index down 2.2%
- Nifty Smallcap index down 2.6%
- India Volatility Index up 7.4% at 22.55
- Nifty Metal and PSU Bank indices are the top sectoral laggards; down 3.3% each
- Nifty Auto, Nifty Realty and Nifty I.T. fall over 2.5% each
- Nifty Pharma down 1.3% while Nifty FMCG down 0.6%
- Bharti Infratel remains the top Nifty gainer; up 3.4%
- Bajaj Finance is the top Nifty laggard; down 5%
- 47 out of the 50 Nifty constituents decline
- 1,517 stocks on the NSE trade with losses while 234 are bucking the trend
Stock Reaction: Gayatri Projects
The company has informed the exchanges that it has won the Letter of Award (LoA) from the Namami Gange & Rural Water Supply department in Uttar Pradesh for a joint venture where the company's share is 80%.
The order involves construction of Kachonda Kalan Group of Villages Water Supply scheme in the district of Lalitpur, including commissioning and operation and maintenance for 10 years.
The order is worth Rs 196 crore, the company said in the statement.
Shares recovered from the day's low to gain as much as 1.5% to Rs 17.3, post the announcement. The stock is up for the second straight day.
Stock Reaction: Jindal Stainless
The company has clarified on newspaper reports being published today saying that SBICAP Trustee has acquired 56.17% stake in the company.
The company has said that SBICAP Trustee has not acquired any stake and that the information is 'incorrect and misleading.'
"The assets of JSL, being the operating company, remain the primary security," the statement said.
The company said that the loan was availed by the company from IndusInd Bank in the normal course of business. Shares held by the promoter were pledged on pari-passu basis in favour of SBICAP, who acted as a security trustee.
"The promoters of JSL have not sold any of their shareholding in the company and continue to hold their controlling stake," the statement said.
Shares recovered from the day's low and are currently trading 1.6% lower at Rs 40.55. The stock is down for the sixth straight day at the lowest level in nearly two months.
Stock Reaction: Tata Elxsi
The company has announced the opening of a Global Engineering Center with Schaeffler Technologies. It has the global engineering services partner for Schaeffler, and the GEC is part of a strategic multi-year engineering services engagement.
The centre, which will be based in Pune, will focus on Mechatronics, Digital and Embedded technologies, in-lien with Schaeffler's vision for driving 'mobility for tomorrow,' the statement said.
Shares are recovering from the day's low, after falling as much as 3.6% to Rs 1,160, post the announcement. The stock is down for the third straight day.
Metal Index Is The Top Sectoral Laggard
Buzzing Stock: TCS
- Among top laggards on the Nifty 50 index
- Falls as much as 4.4% to Rs 2,359
- Biggest single-day drop in five months
- Trades at the lowest level in two weeks
- Down for the second straight day
- Has declined over 6% in the last two trading sessions
- Today's volumes are at par with its 20-day average
- Nearing its 50-Day Moving Average on the downside at 2,299
- Stock's Relative Strength Index (RSI) falls below 50, now at 49
- Has made a 52-week high of Rs 2,555 on September 22, 2020
- 18 out of the 48 analysts tracking the stock have a buy recommendation; 12 sell calls
- The stock trades 6.4% higher than its 12-month consensus price target of Rs 2,239, implying a negative return potential
Buzzing Stock: Syngene International
- One among the three gainers on the Nifty Midcap index
- Gains as much as 6.9% to Rs 596.7
- Trades at an all-time high
- Up for the second straight day
- Today's volumes are more than double the 20-day average
- Stock in overbought territory with Relative Strength Index (RSI) at 74
- Trading above all of its key Daily Moving Averages
- Close to tripling from its 52-week low of Rs 212 on March 30, 2020
- Six out of the nine analysts tracking the stock have a buy recommendation; 2 sell calls
- The stock trades 20.9% higher than its 12-month consensus price target of Rs 458.1, implying a negative return potential
ONGC Says Hazira Fire Doused
The fire at ONGC Ltd's Hazira gas processing plant in Gujarat has been completely extinguished, the company said in a twitter post.
The state-run oil explorer also said that the company is making efforts to resume normal operations at the earliest.
The company had earlier said that the fire was controlled and that there was no casualty or injury. A spokesperson for ONGC said that the fire had disrupted some gas supplies.
ONGC's Hazira plant has the capacity to process 46.9 mmscmd of natural gas, produced mostly from the Bassein field in Western Offshore basin.
Shares fell as much as 3.2% to Rs 65.45, down for the fourth straight day. The stock is trading at the lowest level in five months.
Top Indian Refiner Betting On Plastic
India's biggest oil refiner - Indian Oil Corporation is betting on plastics as it seeks to diversify from an increasingly challenging fuels business, Bloomberg News reports.
The company plans to add petrochemical plants to all of its future refinery expansions and boost existing output at its current facilities, Chairman Shrikant Madhav Vaidya said.
Overall, less than 10% of the crude processed by the company is used to make petrochemicals.
Vaidya, however, is optimistic about India's demand growth outlook for petroleum fuels and future investments in the sector. He sees consumption reaching pre-virus levels as early as the end of the year.
Fuel stockpiles have also eased closer to a more typical level that is sufficient enough to meet two weeks of demand, he said.
Stock Reaction: Cadila Healthcare
The drugmaker has informed the exchanges that it has received the U.S. FDA approval to market the Palbociclib Capsules in the strengths of 75 mg, 100 mg and 125 mg.
Palbociclib is an anti-cancer medicine that interferes with the growth and spread of cancer cells in the body, the company said in an exchange filing.
The drug will be manufactured at the group's formulation manufacturing facility at the SEZ, Ahmedabad.
Shares are recovering from the day's low, after falling as much as 2.1% to Rs 375.9. The stock is down for the fourth straight day, its longest losing streak in over two months.
Buzzing Stock: Advanced Enzyme Technologies
- Top gainer on the Nifty 500 index
- Gains as much as 17.7% to Rs 268
- Biggest single-day gain since August 2016
- Surged to the highest level since January 2018
- Up for the second straight day
- Today's volumes are 60% higher than the 20-day average
- Relative Strength Index (RSI) of the stock at 60
- Trades at 17.4 times estimated forward Earnings Per Share as compared to 12.8 times for two-year historical average
- Has gained more than two and a half times from its 52-week low of Rs 98, on March 23, 2020
- Both analysts tracking the stock have a buy recommendation
- Return potential of the stock as per Bloomberg data is 1.2%
Markets At 10:10 A.M.
- Benchmark indices extend losses on September series expiry day
- Nifty down 1.4% at 10,971
- Sensex down 1.4% at 37,130
- Nifty Bank down 1.6% at 20,854
- Nifty Midcap index down 1.8%
- Nifty Smallcap index down 1.9%
- India Volatility Index up 4.2% to 21.87
- Nifty Media is the top sectoral laggard; down 2.9%
- Nifty Auto, Nifty Metal, Nifty PSU Bank and Nifty Realty fall over 2% each
- Nifty I.T. declines 1.7% while the FMCG index is down 0.9%
- Bharti Infratel is the top Nifty gainer; up 1.6%
- IndusInd Bank is the top Nifty laggard; down 4%
- 46 out of the 50 Nifty constituents decline
- 1,406 stocks on the NSE trade with losses while 262 buck the trend
Money Market Update
The currency has opened weak in today's session, in-line with the decline witnessed in the equity markets.
The rupee opened at 73.83 against the U.S. Dollar, as compared to Wednesday's close of 73.57.
The Reserve Bank of India will continue to intervene to prevent any sharp appreciation in the rupee, Bloomberg News says, quoting from a note by ICICI Bank.
The RBI is also set to buy bonds worth up to Rs 10,000 crore today through an outright Open Market Operation, its first such direct purchase in six months.
AU Small Finance Bank expects the government to stick to the Rs 12 lakh crore borrowing plan for now and possibly take a call in December on any additional borrowing.
Stock Reaction: IRCON International
The company informed the exchanges on Wednesday that it has secured works of nine road over bridges (ROBs) worth over Rs 400 crore from the Ministry of Railways.
The work was awarded to the company by the Railways through a competitive bidding process among PSUs.
The scope of the order is to provide PMC services for construction of ROBs in lieu of the existing level crossings.
The timeline to complete the orders is 24 months from the date of signing the MoU with the zonal railways, the company said in its exchange filing.
Shares gained as much as 4.1% to Rs 83.75, before cooling off.
Stock Reaction: Sun Pharma
Bloomberg News has reported that the drugmaker will voluntarily recall one lot of RIOMET (metformin hydrochloride for extended-release oral suspension).
The reason for the recall is attributed to the presence of N-Nitrosodimethylamine (NDMA), which has been found to be above the acceptable levels by the U.S. FDA.
Shares fell as much as 3.1% to Rs 487.3, the lowest level in two months. The stock is trading lower for the second straight day.
All Sectoral Indices Decline
Coronavirus India Updates
- Covid-19 cases in India continue to rise
- 86,508 new cases reported in the last 24 hours
- Total cases now at 57,32,518
- Active cases at 9,66,382
- Patients cured / discharged / migrated at 46,74,987
- Death toll rises to 91,149
- 1,129 deaths reported in the last 24 hours
- Recoveries exceed the number of reported cases
- 87,374 patients recovered in the last 24 hours
Here's How The Indices Are Faring At The Start Of Trade
Current Market Update
Opening Bell: Weak Start To Expiry Day
Indian equity markets have begun the September F&O series expiry session with losses, in-line with the weak global sentiment.
The S&P BSE Sensex opened 1% lower at 37,282 while the NSE Nifty 50 index opened 1.1% lower at 11,011. Both benchmark indices are down for the sixth straight day today.
As of closing on Wednesday, both Sensex and Nifty were down over 3.5% in the September series.
All sectoral indices have opened with losses. The Nifty Media index has opened 2.7% lower, down for the fourth straight day.
Indices like Nifty Bank, Nifty Auto, Nifty Metal, Nifty PSU Bank and Nifty Realty have opened with losses of over 1%.
Cuts are being witnessed in the broader markets as well at the start of trading. The Nifty Midcap index is down 1.1% while the Smallcap index fell 1.7% in the early minutes of trade.
Trading Ideas For The Day
- Nifty: Sell 11,300 Call of the October 1 expiry in the range of Rs 50-52. Target of Rs 36-26 and stop loss of Rs 66.
- Nifty Bank: Sell in the range of 21,150-21,250 for target of 21,000-20,800 and stop loss of 21,325
- Buy Ramco Cement September futures for target of Rs 737 and Rs 753 with stop loss of Rs 715.9
- Sell TVS Motor September futures for target of Rs 431.1 and Rs 421.4 with stop loss of Rs 443.9
- Ramco Cement and TVS Motor are intraday recommendations
Source: ICICI Securities
How Did The Fund Flows Fare On Wednesday
Key Stocks In Focus
- Sun Pharma: Bloomberg News reports that the company will voluntarily recall one lot of RIOMET ER (Metformin Hydrochloride for extended-release oral suspension), to the consumer level. The recall is due to the level of N-Nitrosodimethylamine (NDMA) being above the acceptable daily intake limit established by the U.S. FDA.
- Zydus Wellness: Launches QIP issue at Rs 1,775.85 per share on Wednesday. Floor price is a 3.3% premium to Wednesday's closing price. The company may offer a discount of not more than 5% on the floor price as per SEBI guidelines. The panel will meet on September 28 to consider the closing of the QIP and issue price for sale.
- Ircon International: Secured work orders for nine road over bridges valuing over Rs 400 crore from the Ministry of Railways.
- CG Consumer Electricals: Promoter Amalfiaco created pledge of 17.17% stake or 10.77 crore shares in favour of Nomura and Deutsche Bank for securing a loan facility worth $145 million.
- Chemcon Speciality Chemicals: IPO subscribed 149.6 timeson the final day. Institutional subscription at 113.4 times, non-institutional subscription at 450.5 times and retail subscription at 41.3 times.
- CAMS: IPO subscribed 46.99 times on the final day. Institutional subscription at 73.18 times, non-institutional subscription at 111.85 times and retail subscription at 5.55 times.
- Angel Broking: IPO subscribed 1.46 times on the second day of bidding. Institutional subscription at zero, non-institutional subscription at 0.31 times and retail subscription at 2.79 times.
To know more about stocks in focus and key brokerage updates, click here.
Your Trade Setup For The Day
A Check On Indian ADRs
A Weak Expiry In Store
Good Morning!
Indian equity markets are set to snap their four successive streak of gains during a futures and options series.
The S&P BSE Sensex and NSE Nifty 50 are down more than 3.5% for the September F&O series that will expire today. Only 10 Nifty stocks and five Sensex constituents have managed to gain during the period as of closing on Wednesday.
Futures are again pointing to a gap-down opening in today's session. The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 1.2% to 11,000 as of 8:10 a.m.
Asian markets are trading lower this morning after warnings from the Federal Reserve on the need for more stimulus to revive the global economy.
Markets in South Korea, Hong Kong and Australia were the biggest laggards. Futures on the Dow Jones are trading little changed. The index fell 2% on Wednesday to its lowest in eight weeks.
West Texas Intermediate crude fell 1.1% to $39.51 per barrel, while gold rose 0.2% to $1,867.43/Oz.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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