Nifty continue upward march; auto, bank shine

Indian Benchmark index Sensex closed in the green for the third successive session on September 11, supported by gains in shares of bank and auto heavyweights, including Maruti Suzuki, State Bank of India and Tata Motors.

The market remained in the positive terrain throughout the session in the light of easing Sino-US tensions. Besides, the hopes of further stimulus by the government and GST rate cut on auto gave a leg up to investor sentiment.

“The Indian equity markets closed on a positive note riding on the hopes of more government sops,” said Ajit Mishra Vice President, Research, Religare Broking.

The government has said it will take more steps to revive confidence in the market. Union Finance Minister Nirmala Sitharaman on September 6 said the government will respond to the challenges faced by all the sectors.

However, an uptick in global crude oil prices and flat rupee capped the gains of the market. Brent crude climbed almost 1 percent whereas the Indian rupee closed 4 paise up at 71.66 per dollar.

Sensex closed 125 points, or 0.34 percent higher at 37,270.82, with 17 stocks in the green.

Yes Bank, Tata Motors, Maruti Suzuki, Tata Steel, Vedanta and IndusInd Bank emerged as the top gainers in the Sensex pack.

On the flip side, ONGC, HCL Technologies, Sun Pharma, NTPC and Tata Consultancy Services were the top losers in the Sensex index.

The Nifty index closed with a gain of 33 points, or 0.30 percent, at 11,035.70, with 25 stocks up and 25 down. With this, Nifty extended its winning spree into the fifth consecutive session.

The broader markets outperformed Sensex as both BSE Midcap and Smallcap ended with healthy gains of 1.04 percent and 1.43 percent up, respectively.

Among the sectoral indices, IT and Teck fell 1.29 percent and 1.15 percent, respectively. BSE FMCG (down 0.32 percent), Oil & Gas (down 0.24 percent) and Utilities (down 0.22 percent) also ended with losses.

Rest all settled higher, with BSE Realty (up 4.45 percent), Auto (up 3.51 percent) and Metal (up 2.45 percent) logging strong gains.

Auto stocks rallied on hopes of GST rate cut which gave a fillip to metal stocks also as the auto sector is a major consumer of steel and aluminium.

Realty stocks saw gains after media reports suggested that the government may soon announce relief measures for the sector.

The breadth of the market favored gainers as 1,845 stocks logged gains on the BSE against 775 that incurred losses. As many as 155 stocks remained unchanged.

Top news of the day:

The government is working on Rs 40,000 crore on subsidies and benefits to give electric vehicles (EVs) a push from the manufacturing side, the Business Standard reported.

Former union minister P Chidambaram has moved the Delhi High Court for bail in the INX Media case.

Former Andhra Pradesh Chief Minister Chandrababu Naidu, his son Nara Lokesh and several leaders of his Telugu Desam Party (TDP) have been put under house arrest, reported the Indian Express.

#BoycottMillennials is one of the top trends on Twitter in India after Finance Minister Nirmala Sitharaman attributed the lower demand for automobiles to the changing mindset of millennials.

Hong Kong Exchanges and Clearing (HKEX) on September 11 said it plans to acquire London Stock Exchange Group (LSEG) in a deal valued at 29.6 billion pounds, which translates to around Rs 2.6 lakh crore.

Stocks in news:

Shares of Tata Motors surged 10.21 percent to Rs 134.35 on BSE on September 11 after company’s retail sales in China recovered in the month of August. Retail sales in China rose 17.4 percent year-on-year as the company’s local turnaround plan gathered momentum, the company said in a press release.

Yes Bank shares rallied 13.47 percent to Rs 71.60 on reports that co-founder Rana Kapoor is in talks with Paytm to sell his stake in the bank.

Shares of Indian Hume Pipe rallied 4.87 percent to Rs 259.70 after it said it has received a letter of intent for the work of Rs 133.08 crore (excluding GST) for Gowardhan project in Maharashtra.

Shares of Goa Carbon closed 20 percent higher at 323.75 after the company reported production numbers for the month of August 2019. The company’s production of Calcined Petroleum Coke for the Bilaspur, Goa and Paradeep plant stood at 2,173.600 MT, 6,232.400 MT and 8,221 MT, respectively.

Shares of Premier Explosives gained 8.48 percent to end at Rs 182.30 after the company won an order from Vikram Sarabhai Space Centre for the production of PSOM-XL segments (solid propellant) for their satellite launch vehicles.

Escorts shares jumped 5.30 percent to Rs 530.80. Global brokerage HSBC retained its bullish stance on the stock and added that the stock is cheap at 9 times FY21 earnings per share (EPS) estimates.

Shares of Wipro fell 2.91 percent to Rs 248.15 after global brokerage firm CLSA retained sell call on the stock amid poor execution. The research house has a target price at Rs 220 per share, implying a 14 percent potential downside.

Global update:

European shares rose to six-week highs, as China eased trade worries by saying it would exempt some US goods from additional tariffs, with eyes also moving to a European Central Bank meeting expected to deliver more economic stimulus, Reuters reported.

Asian markets ended mixed on September 11. Shanghai Composite index closed 0.41 percent down at 3,008.81, Nikkei gained 0.96 percent to end at 21,597.76 and Kospi rose 0.84 percent to 2,049.20.

Technical view on the market:

Nifty is witnessing resistance in the range of 11,050 – 11,100. This has been one of the key resistance zones for the last few weeks which bulls haven’t been able to take out.

The market is awaiting good news from the Finance ministry which may be in terms of stimulus. The recent upswing we have seen is on the back of the same.

“The derivatives data point to huge activity at 11,000 strikes on the puts front making it the point of control for the next trading session. The overall concentration indicates the range to be 11,200 to 10,800. We believe a close above 11,100 should trigger a short-covering that can drive markets further higher. One should be cautious on the shorts side. A break above 11,100 would likely be seen with an increase in volatility,” said Mustafa Nadeem, CEO, Epic Research.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.