IGI Logo

Nifty : 23,031.40 -13.85 (-0.06%)

Sensex : 76,138.97 -32.11 -0.04%

* Equity benchmarks Nifty and Sensex closed lower for the seventh consecutive session, erasing their entire intra-day gains due to concerns over a higher-than-expected U.S. inflation reading and rising trade tensions. Additionally, profit-booking in select IT and banking stocks, along with foreign fund outflows, dragged the market down in the latter part of the day. The market remained cautious ahead of trade tariff discussions between India and the U.S. during the Prime Minister’s visit, despite domestic inflation dropping to a five-month low of 4.31%. Nifty fell by 13 points to close at 23,031 after reaching an intra-day high of 23,235. Nifty IT stocks were the biggest losers, with the Nifty IT Index dropping 1%, while pharma and metal stocks saw modest gains. On the global front, both Asian and European markets rose, fueled by optimism that U.S.-Russia talks could lead to an end to the war in Ukraine.

* The Nifty Pharma Index gained over 1% following media reports that Republican Speaker Mike Johnson suggested President Trump could consider exempting the pharma sector from reciprocal tariffs. IPCA Labs surged 5% to close at Rs. 1,490 after reporting strong quarterly results. Mankind Pharma, JB Chemicals, Sun Pharma, and Aurobindo Pharma each rose by 3%. The Nifty Metal Index gained nearly 1%, fueled by expectations of improved global demand after news that China's property market is showing signs of stabilizing, with high premiums for land plots in key cities, according to the Economic Information Daily. Stocks like SAIL, Tata Steel, Jindal Steel, and National Aluminum rose by 1-3%.

Technical Outlook:

* Nifty index opened flattish and saw strong buying in the first half of the session rallying over 150 points to hit a high of 23235. However, in the second half bears took control wiping out all intraday gains and causing volatile moves.

* It formed a small bodied candle with longer upper shadow which indicates selling pressure on higher levels and closed with some losses near 23030 zones. Now till it holds below 23150 zones, weakness could be seen towards 22950 then 22800 zones whereas hurdles are placed at 23150 then 23333 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.13% at 23094 levels. Positive setup seen in Muthoot Finance, SBI Card, Bajaj FinServ, SBI Life, Cholamandalam Finance, Auro Pharma, SAIL, Tata Steel, Bharti Airtel and Sun Pharma while weakness in Adani Enterprise, VBL, PI Industries, Voltas, Mphasis, Metropolis Healthcare, Bharat Forge, Godrej Consumer Products, Colpal, LTIM, Coforge and Astral.

* On option front, Maximum Call OI is at 23400 then 23500 strike while Maximum Put OI is at 22400 then 23000 strike. Call writing is seen at 23400 then 23200 strike while Put writing is seen at 22400 then 23000 strike. Option data suggests a broader trading range in between 22500 to 23500 zones while an immediate range between 22800 to 23300 levels.

* Tata Steel likely to tap corporate bond market after near 1-year hiatus – Company is set to tap the corporate bond market after a gap of nearly one year. Company is likely to raise around Rs 3,000 crore ($345.6 million) through this bond issue and will likely complete the issue before the end of this month.

* RBI approves Temasek unit’s 7% stake purchase in AU Small Finance Bank - Company announced that the Reserve Bank of India (RBI) has approved Zulia Investments Pte. Ltd., an indirect wholly owned subsidiary of Singapore’s Temasek Holdings, to acquire up to 7 per cent stake in the bank.

* M&M Finance approves raising Rs3000cr via right issue - The board of non-banking lender Mahindra & Mahindra Financial Services Ltd. on Thursday approved raising up to Rs.3,000 crore through a rights issue of shares

* Shriram Finance raises over $500mn via ECB loan to push loan - Company raises USD 500 million through SACE loan, a first for Indian NBFCs. Transaction enhances SFL’s ability to fund Italian vehicles and supports sustainable growth.

* Metal stocks focus Global metal stocks recorder smart rally after the news that the China’s property market is showing signs of stabilizing, with land plots in key cities sold at high premiums in recent weeks, according to a report in the Economic Information Daily. Beijing, Zhengzhou, Shenzhen and Hangzhou have recorded premiums in land auctions this year, thanks to supportive policies and improving market confidence, the newspaper said Thursday.

* IPCA Labs Q3 Results - Net profit Rs.248cr (up 38% YoY), Income Rs.2250cr (up 10% YoY) , Ebitda Rs463cr (up 40% YoY) and Ebitda margin 20.6% vs 16% (YoY) – expectation 17.8%

* Venus Pipes Q3 results - Revenue up 11.7% (YoY) at Rs 231 crore, Ebitda down 4.6% (YoY)at Rs 37.1 crore, Ebitda Margin at 16% versus 18.8% (YoY). Net Profit down 22.8% (YoY) at Rs 17.9 crore

Market Update

* European Market - European stock advanced to a fresh record high amid optimism that talks between the US and Russia will lead to an end to the war in Ukraine, and after good earnings from companies including Nestle SA and Siemens AG. UK, Germany and France gained 0.2% each.

* Asian Market – Asian stocks rise as the US announces talks with Russia aimed at halting the war in Ukraine. The euro rallies and oil declines. US Treasury futures rise after bonds fell in the US on stronger-than-expected CPI data. In Hong Kong, the tech gauge is set for a second day of gains — adding 2.8% and on track for its highest close since February, 2022 — again driven by AI optimism. China Index gained 2.6% and 1% respectively. Australia and Japan Index marginally gain.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412