Journey to landmark 10,000 mark
Vinod Nair, Head of Research, Geojit Financial Services
Nifty witnessed a historical day by touching 10,000 supported by better earnings from blue-chips and strong liquidity. However, profit booking at higher levels pulled the market to mild correction due to psychological effect, muted Q1 results from midcap companies and investors awaited tomorrow’s US Fed monetary policy meet.
3:50 PM The breadth, indicating the overall health of the market, was negative. On the BSE, 1,472 shares declined and 1,203 shares rose. A total of 167 shares were unchanged.
3:49 PM In the broader market, the BSE Midcap added 0.5% to close at 15,312, while the BSE Smallcap ended at its record high of 16,054, up 0.1%.
3:47 PM Bharti Airtel ended flat at Rs 427 ahead of its June quarter results later in the evening.
3:45 PM Sectoral gainers and losers (source: NSE)
3:41 PM Nifty Bank ends at record high (source: BSE)
Markets at close
Sensex ended at 32,228, down 17 points, while the Nifty50 settled at 9,964, down nearly 2 points.
3:20 PM Asian Paints, India's biggest paint maker by market capitalisation, posted a 20% fall in first-quarter consolidated profit on Tuesday. The company said its decorative business was impacted in June ahead of the rollout of the Goods and Services Tax while higher material prices also squeezed margins.
Stock was trading flat at Rs 1,152.
Strength among commodity firms and banking stocks as well as a string of solid updates boosted European shares on Tuesday. The pan-European STOXX 600 index rose 0.3% bolstered by strength in mining firms and banks while blue chips gained 0.4%. Germany's DAX rose 0.1% and the commodity-heavy FTSE 100 was up 0.5%.
3:07 PM Markets check
At 3:00 am, the Sensex was trading at 32,268, up 25 points, while the Nifty50 was ruling at 9,975, up 9 points.
2:44 PM BSE Midcap (0.5%) and BSE Smallcap indices (0.1%) outperform Sensex, Nifty
Gautam Shah, CMT Associate Director, Chief Technical Analyst- JM Financial Services
It is truly a historic moment for the Indian markets that should be celebrated in every right. Markets levels are never about a destination, it’s the journey that matters and it’s been a special one for this year. The Indian investor needs to be congratulated for being an integral part and a catalyst for this move, something that we have not seen in the previous milestones.
One should not get carried away in believing that this run-up would continue for good. For the first time this year, the market looks overbought technically and hence could shed some weight in the near-term.
If this happens, it would be an healthy outcome. We see signification resistance around the 10,000-10,100 mark and do not think the market is ready to get past this hurdle in the current attempt. Profit-booking in trading/leverage positions is recommended. However, over the medium-term, we see the Indian market scaling greater heights and testing the 11,000 mark and hence investors are advised to stay put and add to positions on dips of 3-5%. The Metals and Auto sectors are likely to see continuing strength while IT and Pharma could end their long period of underperformance.
1:58 PM Top Sensex gainers and losers in noon deals (source: BSE)
COMMENT: Mustafa Nadeem, CEO, Epic Research
Technically it is more of a psychological mark which was out there to be achieved and Nifty did it very smoothly. Going forward 2-3 days will be crucial as it will give a lot of cues for future course of direction. Bank Nifty leading the broader indices rally may continue to do better while some minor profit booking cannot be ruled out though the undertone remains bullish.
The global liquidity glut will continue to push the markets to new high and investors are looking for more gains from rising Indian equities. The implementation of reforms and signs of revival of economy is giving boost to expectation of market hitting new highs
At 1:50 pm, the Sensex was trading at 32,246, up 0.29 points, while the Nifty50 was ruling at 9,964, down 1.65 points.
Monetary Policy expectation
ICRA anticipates that the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) would reduce the repo rate by 25 basis points (bps) in the upcoming policy review in August 2017. However, the decision is unlikely to be unanimous and the tone of the policy document may not signal that further cuts would be forthcoming. In addition, the RBI is likely to indicate that additional open market operations would be conducted to manage the prolonged liquidity surplus
COMMENT: Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas
We are in a long term bull market in India and 10K nifty is just an important milestone in this journey. We hope more investors are able to participate in this opportunity as Equity has been best performing asset class both in India and globally. As we are in the quarterly results season, some volatility is possible, but we continue to be positive on equity markets from two-three years horizon
1:24 PM Volatility index India VIX down over 2% to 11 (Source: NSE)
1:01 PM Nifty at 10,000
It took 592 trading days for the Nifty to scale 1000 points to hit the 10,000 mark in intraday trade. CLICK HERE FOR THE CHART
12:28 PM Idea Cellular surged 7% to Rs 98.30 on BSE on back of heavy volumes after the Competition Commission of India (CCI) on Monday approved the merger with Vodafone India.
COMMENT: Rakesh Tarway - Head Research, Reliance Securities on Nifty hitting 10,000 mark
NIFTY finally touched round and psychologically important mark of 10000 on the back of strong domestic liquidity, rally in global equity markets and reasonable earnings performance from domestic companies.
Valuations are now discounting good earnings growth for the next year and any disappointment on the same might lead to sell off in equity markets. Retail investors should be preferring regular periodic investments in equity markets rather than bulk one time investments to spread out the risk
Salasar Techno Engineering has made a stellar debut by listing at Rs 259, a 140% premium against its initial public offer (IPO) price of Rs 108 on BSE (Bombay Stock Exchange).
At 11:36 am; the stock was trading at day's high of Rs 272 on BSE. It touched a low of Rs 250 in intra-day trade so far. Around 938,000 equity shares changed hands on the counter, the BSE data shows.
11:34 AM 16 stocks zoom over 4000% in a decade
In the last one decade, 77 stocks listed on the NSE have rallied more than 1,000% or more than 11 times. The companies, or initial public offers (IPO), which got listed after September 27, 2007 were not considered for the study.
Of these total 77 stocks, 16 stocks have zoomed more than 4000%, 10 between 2000% and 3,700% and 12 in the range of 1500% to 3000%.
Among individual stocks, Ajanta Pharma, Eicher Motors, Somany Ceramics, Can Fin Homes, Bajaj Finance, Vakrangee, Indo Count Industries, Natco Pharma, Kajaria Ceramics and KRBL are the 48 stocks that currently feature in Nifty 500 index and have rallied more than 4000%.
Click here for full report
At 11:30 am, S&P BSE Sensex was trading at 32,240, down 5 points while the broader Nifty50 index was ruling at 9,961, down 5 points.
In broader markets, the BSE Midcap outperformed the benchmark indices, up o.3% while the BSE Smallcap was a little changed.
10:54 AM A look back at NSE's 25-year history
NSE, which was the first exchange in the country to provide a fully automated screen-based electronic trading system to the investors, was established in 1992 as a tax-paying company. It was recognised as a stock exchange by the market regulator Sebi in April 1993, when P V Narasimha Rao headed the country as Prime Minister and Manmohan Singh was the Finance Minister. The equity segment of the NSE commenced operations in 1994, and derivative segment came into being in 2000, while the internet trading also started in 2000.
10:48 AM Rally in index heavyweights, rate cut expectations, gush of liquidity are among 5 factors that helped Nifty cross 10,000. Click here for more details
Buildings are reflected on the glass windows of the NSE (National Stock Exchange) building in Mumbai (Photo: Reuters)
10:34 AM Idea Cellular gained nearly 5% after CCI approved the proposed merger between Vodafone India and Idea on Tuesday. Vodafone's India unit and Idea, currently ranked at two and three, respectively, will have a combined base of nearly 400 million customers and 41% revenue market share.
ITC: Price hikes improve earnings visibility; BUY, says Ambit Capital
ITC has fully passed on the recent increase in taxes with a total price hike 7-8% across its cigarettes portfolio. The hike is the highest in the lower-end 64mm segment (37% of sales; Bristol up 20% and Gold Flake up 9%) followed by 6-11% for 69mm (40% of sales). The premium segment (84mm; 19% of sales) got a lower hike of 7% as taxation for this segment is now largely ad valorem and higher hikes wouldn’t help margins.
Target price of Rs 320 (9% upside) implies 25x FY19E P/E, which is at an unjustified discount of 30% (vs historical average of 20%) to the sector despite dominance (80%+ market share) in cigarettes business that accounts for 85% of ITC’s profits
IIFL on market outlook
Investors will not read too much into these levels as performance of one’s portfolio and the long term trend in the market is what matters
Nomura recommends 'buy' on HDFC Bank
We maintain HDFC Bank as a high conviction BUY with revised TP of Rs 2000/share (21x Sep-19 consolidated EPS). With ~19.5% ROEs and +20% PAT growth over FY17-20F, we expect the bank’s premium valuations to sustain as size does not seem to be a constraint. A slowdown in retail growth is key risk to our BUY rating. HDFC Bank trades at 18x Sep-19F consolidated EPS.
10:19 AM HDFC Bank hits new high of Rs 1,756, extending its previous day’s 1.8% gain after the private sector lender reported 20% year-on-year (Y-oY) rise in its net profit at Rs 3,894 crore, in line with estimates, for the quarter ended June 2017 (Q1FY18). The bank had reported profit of Rs 3,239 crore in the corresponding period of the previous year.
COMMENT: Nitasha Shankar, Sr. Vice President and Head of Research, YES Securities on Nifty hitting 10,000
The markets have crossed a sentimental barrier of 10,000 which is a phenomenal feat in itself. The spectacular run-up in stock prices over the past few years goes on to re-affirm the India shining story which in turn is driven by macro-economic condition and fundamentals of the country.
Our recommendation to long-term investors is to remain invested in these markets as the 'India Shining' story still has lot of steam in it. However, global geo-political situation could cause aberrations. It is always prudent to keep booking some profits whenever new peaks are attained
10:10 AM RIL hits recod high
RIL hit a record high of Rs 1,629, surpassing its previous high of Rs 1,626 touched on January 15, 2008 in intra-day deal. In the last three trading sessions, the stock rallied over 6% after Mukesh Ambani, chairman and managing director of RIL, announced the board's recommendation for one bonus share for every one held by shareholders, at the 40th Annual General Meeting (AGM) in Mumbai on Friday.
Ambareesh Baliga: In the short term, we may be looking at possible blow out rally as Nifty crosses 10,000 but could end up gobbling a lot of hard earned money of gullible investors. It is important to get rich but more important to stay rich.
9:56 AM Markets check: Markets pare opening gains after Nifty hit 10,000-mark for the first time in 21 years.
At 9:55 am, S&P BSE Sensex was trading at 32,215, down 30 points while the broader Nifty50 index was ruling at 9,960, down 6 points.
In broader markets, the BSE Midcap was little changed while the BSE Smallcap was doen 0.2%.
The launch of Nifty index
The NSE launched its flagship 50-share index on April 21, 1996 with a base value of 1000, and base year 1995. It was then called the CNX Nifty and was renamed in 2015 as Nifty50.
9:49 AM Top gainers and losers on BSE Sensex
9:47 AM Markets pare some opening gains
At 9:48, S&P BSE Sensex was trading at 32,302, up 56 points while the broader Nifty50 index was ruling at 9,985, up 19 points.
In broader markets, The BSE Midcap and BSE Smallcap indices were trading 0.4% and 0.2% higher respectively.
9:43 AM Nifty hits 10,000-mark: Sectors and stocks to invest in
Banks and NBFCs
Banking stocks remain analysts’ favourite and they suggest investing in private sector banks instead of their PSU counterparts. "Investors should look at Axis Bank, HDFC Bank and Yes bank in large caps and IndusInd Bank and RBL Bank among midcap banks," says Gaurang Shah of Geogit Financial Services.
ITC, HIL, Godrej Consumer, Dabur, Marico and Emami are the top picks at current valuations in the sector for Shah.
9:26 AM Reliance, TCS, Indiabulls Housing Finance HDFC Bank and Bharti Airtel gained the most on Nifty50 while Bharti Infratel, Axis Bank, Tata Steel and Vedanta lost the most on the index
9:24 AM Nifty hits 10,000
9:20 AM The Nifty50 moved from 9,000 to 10,000 mark in 91 sessions, 4 months
9:19 AM Nifty hits 10,000
Nifty50 hits the historic 10,000- mark in Tuesday's trade on earnings optimism shrugging off the global weakness led by gains in the banking and financial stocks. The Sensex also gained over 100 points at open to hit new record high of 32,374, surpassing the previous milestone of 32,320, hit yesterday.
9:07 AM Pre-open trade
Nifty50 hits the 10,000-mark in the pre-open trade while Sensex also gains over 100 points on earnings optimism ahead of the US Fed meet.
Nifty Outlook by Chandan Taparia of MOSL
Nifty index managed to surpass previous high of 9,928 and made a new lifetime high of 9,982. It gave a consolidation breakout of last seven trading sessions and closed with the gains of around 50 points. It made a Bullish Candle at new high territory and is just shy to test its historical 10,000 mark. Now it has to continue to hold above 9,928 to witness an up move towards 10,000 then 10,100 levels while on the downside supports are seen at 9,880, then 9,850.
Click here for stock recos from MOSL
8:58 AM Top technical calls from Prabhudas Lilladher for today's trade
TATA MOTORS - BUY
CMP: Rs 464
TARGET: Rs 490
STOP LOSS: Rs 445
ADANI PORTS - BUY
CMP: Rs 388.45
TARGET: Rs 425
STOP LOSS: Rs 365
CHAMBAL FERTIZERS - BUY
CMP: Rs 134.85
TARGET: Rs 160
STOP LOSS: Rs 120
Idea Cellular in focus
Idea Cellular will be in focus in today's trade after the Competition Commission of India (CCI) approved Idea Cellular's proposed merger with Vodafone on Tuesday. The two had announced the $23-billion deal to create India's leader in the telecom sector.
8:51 AM The dollar crept up from a 13-month low on Tuesday after stronger-than-expected readings on US factory and services activity
Asian peers mixed
MSCI's broadest index of Asia-Pacific shares outside Japan was flat in early trade, with a number of markets looking for fresh impetus after hitting multi-year highs in recent weeks.
Japan's Nikkei rose 0.3% and Australian stocks jumped 0.35%, making up some of Monday's 0.6% slide.
South Korea's KOSPI was little changed.
The Nifty50 futures on the Singapore Stock Exchange were trading 5 points higher at 9,968 indicating a flat opening for the domestic market.
8:49 AM US Markets
Overnight on Wall Street, the Nasdaq set a new all-time high as investors bet on solid earnings from technology companies. The S&P 500 and the Dow closed in negative territory, following European stocks , which lost 0.2%.
First Published: Tue, July 25 2017. 15:37 IST