On Friday, the benchmark indices closed on a positive note after reaching all-time highs during the day. Nifty 50 closed 402.90 points or (1.59%) higher at 25,818.70 while Sensex added 1,389.27 pts or (1.67%) to close at 84,574.06. On the Nifty pack, M&M, ICICI Bank, JSW Steel, L&T and Coal India were the top gainers while Grasim Industries, SBI, NTPC, IndusInd Bank and Hero Motocorp were the top losers.
Earlier, on the back of positive global trends, Indian stock markets opened on a high note on September 20, with the Nifty crossing the 25,500 mark. The Sensex climbed by 325.08 points, or 0.39%, reaching 83,509.88, while the Nifty rose by 106.00 points, or 0.42%, to 25,521.80.
Market breadth was positive, with 1,811 shares advancing, 477 declining, and 112 remaining unchanged. Key gainers on the Nifty included JSW Steel, Tata Steel, M&M, Hindalco, and ONGC, while Tata Motors, LTIMindtree, Dr. Reddy's Labs, Axis Bank, and Asian Paints were among the laggards.
Ashutosh Somani of JM Financial Institutional Securities Ltd said, “Indian steel markets witnessed a soft quarter with average prices down ~INR3-5k/t sequentially. Global steel making raw materials witnessed a decline – spot coking coal down to ~USD180/t (down sharply by USD136/t from peak), iron ore at ~USD88/t (down USD31/t from recent peak in Jan’24) driven by subdued chinese demand. Spreads of India steel players are likely to be under pressure in 2QFY25 driven by lower realizations partially offset by lower coking coal consumption cost (-USD15-30/t). Consequently, we estimate an EBITDA margin compression of ~INR1.5k+/ton QoQ. Volume growth in the seasonally weak quarter is likely to be muted. Working capital requirements is likely to offer some relief as steel / raw material prices trend down leading to better chances of net debt reduction. Spot spreads continue to hold higher currently than 2Q given the sharp correction in coking coal prices to USD180/t. China steel prices having corrected ~20% from recent peak has triggered a similar fall in raw material prices. JSPL (lowest leverage, highest volume growth over next few years) and Hindalco (Novelis delivering record margins) remain our top picks in the space.”
Sep 20, 2024, 2:49 pm IST
Ami Organics | Initiating Coverage: Aim, Master, Innovate
Krishan Parwani of JM Financial Institutional Securities said, “We believe Ami Organics’ growth is set to be catalysed by the ramp-up in Fermion contract supplies and electrolyte additive sales for Li-ion batteries. The Fermion contract for supplying five intermediates for the prostate cancer drug Nubeqa alone could potentially account for ~60% of incremental revenue growth for the company. Also, Ami is working on several new CDMO contracts with other pharma innovators. The company’s expertise in R&D and in manufacturing intermediates on a large scale enables it to acquire CDMO contracts that will provide long-term sales visibility. This will be supported by the solid base business of existing pharma intermediates for APIs in fast-growing chronic therapies where Ami has a market share of 50-90%. Multiple process patents with validity for 10+ years from now for existing pharma intermediates (ex-CDMO) have allowed the company to maintain market share across its product portfolio. Further, the electrolyte additive supplies for Li-ion batteries are set to commence from 2HFY25 with long-term contracts already signed followed by a full production ramp-up from FY26. Also, the acquisition of a controlling stake in Baba Fine Chemicals will enable Ami’s entry into the high-entry-barrier semiconductor chemical segment. We expect Revenue/EBITDA/PAT CAGR at 31%/44%/76% over FY24-27E driven by increasing high-margin CDMO supplies and electrolyte additive sales. We initiate coverage on Ami Organics with a BUY rating and Mar’26 TP of INR 1,965/share (based on 30x Mar’27E EPS).”
Sep 20, 2024, 2:24 pm IST
Market Outlook From Abhishek Banerjee, smallcase Manager and Founder at Lotusdew
Nifty has dislodged China as the largest country in MSCI EM and is hitting all-time highs with 2 active wars. This shows that India is becoming a safe haven instead of an emerging country where money is flowing in to keep it safe and out of conflict. While India's account deficit is also hitting all time high, we are sitting on highest forex reserves too. The ability to cut rates to weather any shocks, corporate private capex on the anvil and record inflows from SIP - India looks to be a great place to be invested in.
Sep 20, 2024, 2:12 pm IST
WTI Crude oil – geopolitical tensions in focus
Mohammed Imran – Research Analyst, Sharekhan by BNP Paribas said, WTI Crude oil is presently trading steady around . Yesterday, buoyed by the Fed’s 50-bps rate cut and geopolitical concerns, it surged nearly 1.66% to close at .04. In a positive development for the counter, Saudi Arabia’s oil exports slumped to an 11-month low in July. As money managers hold net short position in Brent crude oil for the first time, there is a possibility of a short covering rally.
Heightened geopolitical tensions may help the counter take out the resistance at to test . After two straight days of device explosions across Lebanon and the region, Israel launched airstrikes on Hezbollah targets in Southern Lebanon late Thursday and destroyed hundreds of rocket launcher barrels meant for an attack on Israel. Fear of an all-out war between Israel and Hezbollah have gripped the world leaders and markets.
Healthy risk appetite and escalation of geopolitical tensions may help the counter test the resistance at . Next meaningful resistance is around . Support is at /.
Sep 20, 2024, 1:59 pm IST
Nifty Metal Index Up 2%
The Nifty Metal index snapped its three-day losing streak, rallying nearly 2% on the back of gains in key players such as JSW Steel, Tata Steel, and Hindalco. This strong rebound was driven by upward revisions in target prices from major global brokerages, Macquarie and Morgan Stanley. The positive momentum was underpinned by robust domestic fundamentals and easing input costs, key factors cited by analysts as reasons for their optimistic outlook.
Sep 20, 2024, 1:32 pm IST
Reliance Industrial Infrastructure Faces Penalty from State Tax Office
Reliance Industrial Infrastructure has received a penalty order dated September 19, 2024, from the Office of the State Tax Officer in Jamnagar, Gujarat. The company has been penalized Rs 1,59,810 under Section 74 of the Central Goods and Services Tax Act, 2017, as well as the Gujarat Goods and Services Tax Act, 2017.
Sep 20, 2024, 1:14 pm IST
Market Hits Record High; Sensex & Nifty Surge Nearly 1.5%
On Friday, September 20, Indian stock market benchmarks—the Sensex and the Nifty 50—experienced a robust surge of nearly 1.5% each, reaching fresh all-time highs. The Sensex opened at 83,603.04, up from its previous close of 83,184.80, and quickly climbed to a peak of 84,508.36. Similarly, the Nifty 50 began trading at 25,525.95, surpassing its prior close of 25,415.80 to hit a new high of 25,804.40. This upward momentum was also reflected in the BSE Midcap and Smallcap indices, which recorded gains of up to 1%.
As a result of these positive movements, the total market capitalization of BSE-listed firms increased to Rs 470 lakh crore, up from Rs 466 lakh crore in the previous session, effectively adding approximately Rs 4 lakh crore to investors' wealth in just one day.
Sep 20, 2024, 12:52 pm IST
Geojit Financial Services Greenlights Rights Issue
Geojit Financial Services' board has approved a rights issue priced at Rs 50 per share, offering eligible shareholders the right to acquire one additional equity share for every six shares they currently hold. This decision follows the company's earlier approval of a Rs 200 crore rights issue in July.
Sep 20, 2024, 12:24 pm IST
Prestige Estates Projects Continues Its Upward Momentum for Second Day
Prestige Estates Projects has extended its gains for a second consecutive day, following the announcement that it has issued corporate guarantees amounting to Rs 545 crore. These guarantees are intended to secure credit facilities for Techzone Technologies and Thomsun Realtors.
Sep 20, 2024, 12:12 pm IST
AU Small Finance Bank Partners with Niva Bupa to Offer Health Insurance Products
AU Small Finance Bank has entered into a strategic partnership with Niva Bupa Health Insurance Company. This collaboration aims to provide a range of health insurance products to the bank's customers.
Sep 20, 2024, 11:43 am IST
Govt To Introduce Fast-Track Programme In 20 Cities Along With Delhi Airport
In a bid to streamline airport immigration and reduce waiting times, the Indian government has launched an initiative at Delhi's Indira Gandhi International Airport (IGI). The Fast-Track Immigration Trusted Traveller Programme (FTI-TTP), introduced by the Ministry of Home Affairs (MHA), is designed to cut immigration processing times from the typical 30 minutes to just a few seconds. This program, initially rolled out in the nation's capital, is set to expand to 20 other cities.
The FTI-TTP, officially launched on June 22, 2024, leverages biometric technology to expedite immigration at both arrival and departure points. The program offers a more efficient and user-friendly system, allowing registered passengers to bypass regular immigration queues and use automated gates, commonly referred to as e-gates. The move aligns India with other global airports that use similar technologies for travel convenience.
Sep 20, 2024, 11:12 am IST
IIFL Finance Stock Jumps Over 12% After RBI Lifts Restrictions On Gold Loan Business
IIFL Finance shares jumped sharply on Friday, soaring over 12% in early trade after the Reserve Bank of India (RBI) lifted restrictions on its gold loan business. The stock surged as high as 12.33%, reaching Rs 555.25 per share on the Bombay Stock Exchange (BSE). This development marks a turnaround for the non-banking financial company (NBFC), which has been reeling from regulatory constraints since March 2024.
RBI Lifts Gold Loan Restrictions
In a regulatory filing on Thursday, IIFL Finance informed investors that the RBI had removed the restrictions previously imposed on its gold loan operations. Back in March 2024, the central bank had prohibited the company from engaging in the sanctioning, disbursal, assignment, securitization, or sale of its gold loans. The RBI's decision, effective immediately, now allows IIFL Finance to resume all activities related to its gold loan business, in compliance with applicable laws and regulations.
Sep 20, 2024, 10:54 am IST
NTPC Shares In Focus Amid Rs 20,000 Cr Investment In 2 Power Plants
NTPC shares saw a rise during early trading hours on September 20, following the company's announcement of a major investment in two thermal power projects. During a board meeting held on September 19, NTPC approved a total investment of Rs 20,832 crore to boost its power generation capabilities, which includes funding for two thermal power projects.
NTPC's board cleared the investment for the Sipat Super Thermal Power Project, Stage-III (1x800 MW), at an estimated cost of Rs 9,790.87 crore. Located in Chhattisgarh, the Sipat plant has been a contributor to NTPC's power generation capacity. The addition of Stage III is expected to enhance its energy output and ensure a reliable power supply to the grid.
Sep 20, 2024, 10:29 am IST
HDFC Bank Gears Up For Rs 9,000 Crore Loan Sale By September: Report
India's largest private lender, HDFC Bank, is on the verge of finalizing its biggest loan sale to date, with plans to sell loans worth over Rs 9,000 crore (.08 billion) by the end of September, according to a Reuters report. This massive loan sale, structured through pass-through certificates (PTCs), marks a milestone for the bank as it aims to strengthen its balance sheet following its merger with Housing Development Finance Corp (HDFC) in July 2023.
The merger with HDFC has added a substantial portfolio of mortgage loans to HDFC Bank's existing loan book, significantly boosting its lending capabilities. However, the merger also exposed a key challenge: a relatively smaller deposit base. The need for a larger deposit base has put pressure on the bank to either rapidly increase deposit growth or curb its lending activities.
Sep 20, 2024, 10:07 am IST
Reliance Infrastructure Seeks Shareholder Approval for Rs 3,000-Crore Fundraising via QIP
Reliance Infrastructure's board approved a plan on September 19 to raise Rs 3,014.4 crore through a preferential issue of up to 12.56 crore equity shares at Rs 240 per share, according to an exchange filing. The proposed issue will be made to promoter group entity Risee Infinity Private Limited, along with non-promoter entities Florintree Innovation LLP and Fortune Financial & Equities Services Private Limited. The company will now seek shareholder approval for this Rs 3,000-crore Qualified Institutional Placement (QIP).
Sep 20, 2024, 9:28 am IST
Market Opens With Gains
On the back of positive global trends, Indian stock markets opened on a high note on September 20, with the Nifty crossing the 25,500 mark. The Sensex climbed by 325.08 points, or 0.39%, reaching 83,509.88, while the Nifty rose by 106.00 points, or 0.42%, to 25,521.80.
Sep 20, 2024, 9:04 am IST
Rupee Opens Stronger, Gains 5 Paise Against Dollar
The Indian Rupee opened 5 paise higher at 83.63 per US Dollar on Friday, improving from its previous close of 83.68 on Thursday.
Sep 20, 2024, 9:01 am IST
SEBI Imposes Restrictions on Axis Bank's Subsidiary
SEBI has barred Axis Capital, a subsidiary of Axis Bank, from taking on any new assignments as a merchant banker, arranger, or underwriter for debt securities issuances. The regulatory body has also directed Axis Capital to address its concerns within 21 days.
Sep 20, 2024, 8:40 am IST
Oil Prices Poised for Weekly Gains After US Rate Cut
Oil prices are on course to finish the week higher for the second consecutive week, supported by a major US interest rate cut and shrinking global stockpiles. In early Asian trading on Friday, Brent crude slipped by 19 cents, or 0.3%, to .69 per barrel but still posted a 4.3% weekly gain. Meanwhile, U.S. crude edged up by 6 cents to .01 per barrel, marking a 4.8% increase for the week.
Sep 20, 2024, 8:23 am IST
Asian Markets Climb; Nikkei Jumps 2%, Hang Seng Gains 1%
Asian markets continued their upward momentum on Friday, boosted by the impact of a significant interest rate cut in the US. Meanwhile, the yen remained volatile as traders awaited Japan's monetary policy decision for insights on potential future tightening. The Nikkei surged 2%, while the Hang Seng rose by 1%, contributing to the region's rally.
Sep 20, 2024, 8:04 am IST
GIFT Nifty Signals Higher Opening for Indian Markets
Trends in GIFT Nifty suggest a positive start for the Indian stock market, with the index showing a rise of 49 points or 0.19%. Nifty futures were trading around the 25,536 level, indicating a promising beginning for the broader index.
Sep 20, 2024, 7:58 am IST
S&P 500 Hits Record High on Fed Rate Cut Optimism
The S&P 500 soared to a new all-time high on Thursday, fueled by optimism following the Federal Reserve's 50 basis point rate cut. Investors were further encouraged by hints of additional rate reductions in the near future. The Dow Jones Industrial Average also made history, closing above 42,000 for the first time.
The S&P 500 gained 1.70%, closing at a record 5,713.64 points. Meanwhile, the Nasdaq surged 2.51% to finish at 18,013.98 points, and the Dow rose 1.26% to end at 42,025.19 points, marking a strong day for U.S. markets overall.
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