Indian equity benchmarks extended their winning
streak to the fourth straight session and ended with gains of more than half
percent on Tuesday as bulls took control amid the brighter mood in global
markets. Equities opened on a strong note and maintained gain throughout the
day. On the global front, European markets were trading higher with underlying
sentiment boosted by M&A talk and hopes for a softer US inflation
reading.
Also Read | Global markets react to higher than expected US inflation data
The Nifty50 appears to be holding on to an uptrend
continuation formation on the daily and intraday charts, suggesting more
upside, according to Shrikant Chouhan, Head of Equity Research (Retail) at
Kotak Securities. The 50-scrip index has successfully and decisively cleared
short-term resistance at 18,000 in a broadly positive sign, he said.
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The Sensex rose 455.95 points or 0.76% to 60,571.08
while the Nifty was up by 133.70 points or 0.75% to 18,070.05 at the close of
trading on Tuesday. The Sensex moved in a high and low band of 60,635.28 and
59,381.02. There were 24 stocks advancing against 6 stocks declining on the
index. The Nifty traded in a range of 18,088.30 and 18,015.45. There were 34
stocks advancing against 15 stocks declining on the index.
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Broader Indices
The broader indices ended in green with the BSE
mid-cap index up by 0.32% and the small-cap index up by 0.24%. The top gaining
sectoral indices on the BSE were Finance up by 0.85%, FMCG up by 0.77%,
Industrials up by 0.74%, Metal up by 0.74% and Capital Goods up by 0.69%, while
Oil & Gas down by 0.32%, Realty down by 0.21%, Energy down by 0.12%,
Utilities down by 0.06% and Auto down by 0.03% were the top losing indices on
BSE.
India VIX Index
Nifty or India VIX, a gauge of the market’s
expectation of volatility over the near term, fell 2.61% to 17.47 on Tuesday.
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SGX Nifty
The trends on SGX Nifty indicate a negative opening
for the index in India with a 296-point loss. The Nifty futures were trading at
17,796 on the Singaporean Exchange at around 6.59 hours IST.
Support and Resistance levels
The key support level for the Nifty is placed at
18,027, followed by 17,985. If the index moves up, the key resistance levels to
watch out for are 18,100 and 18,131, according to pivot charts.
US Markets
The S&P 500 fell 177.72 points, or 4.32%, to
3,932.69.
The Dow Jones Industrial Average fell 1,276.37
points, or 3.94%, to 31,104.97.
The Nasdaq composite fell 632.84 points, or 5.16%,
to 11,633.57.
The Russell 2000 index of smaller companies fell
74.51 points, or 3.91%, to 1,831.57.
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Asian Markets
Asian markets ended mostly higher on Tuesday. The
Nikkie 225 rose 0.25%, the Shanghai Composite rose 0.05% while the Hang Seng
fell 0.18%.
European Markets
European markets ended mostly lower on Tuesday.
Germany’s DAX was down by 1.59%, France’s CAC 40 was down by 1.39% while
London’s FTSE 100 was down by 1.17%.
Major Headlines
US Inflation eased slightly to 8.3%
in August
Inflation in the United States eased slightly to
8.3% in August on a yearly basis from 8.5% in the previous month. The figure
was higher than expected, pointing to a decline to 8.1%. The Consumer Price
Index for All Urban Consumers (CPI-U) increased 0.1% on a seasonally adjusted
basis in August after being constant in July, according to the U.S. Bureau of
Labor Statistics. Before seasonal adjustment, the all items index grew 8.3%
over the last 12 months ended August, less than the 8.5% gain in the period
ended July.
Vedanta, Foxconn to invest $19.5
billion for chip project in Gujarat
Vedanta Limited and Taiwan’s Foxconn will invest
$19.5 billion (Rs 1.54 lakh crore) under a pact signed on Tuesday to set up a
semiconductor project in Gujarat. The joint venture received subsidies
including on capital expenditure and electricity from Gujarat. They plan to
build separate units from semiconductor and display production near Ahmedabad.
Foxconn is acting as the technical partner, while oil-to-metals conglomerate
Vedanta is financing the project as it aims to diversify into chip
manufacturing. Foxconn said in a statement that the state’s infrastructure and
the government’s active support “increase confidence in setting up a
semiconductor factory”.
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JSW Steel signs agreement with SMS
Group for carbon reduction projects
JSW Steel on Tuesday signed a memorandum of
understanding (MoU) with SMS group, a German engineering and technology
company, for exploring decarbonisation projects at the Indian firm’s plants.
The collaboration would enable the companies to together explore opportunities
to reduce carbon emissions and produce green steel, the company said in a
statement. THE SMS Group would provide its experts for design, engineering
consultancy, and commissioning of projects. JSW Steel would provide support at
its plants for SMS Group to explore solutions for decarbonisation projects.
“While the steel industry accounts for 0.7% of the
world’s economic output, the industry also contributes 7% towards global
emissions,” said Sajjan Jindal, chairman and managing director of JSW Steel, in
a statement.
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Tata Sons to invest Rs 975 crore in
Pune IT City Metro rail project
Tata Sons, holding company
of the Tata Group, is investing Rs 975 crore in Pune IT City Metro Rail, a
special purpose vehicle that has won the contract to construct, operate, and
maintain the project connecting Shivaji Nagar and Hinjewadi in the city. Tata
Sons own a 74% stake in the SPV and the remaining is owned by Siemens Project
Ventures. The Rs 7,420 crore, 23-km project is being financed through
debt-to-equity of 1.8 times and the entire debt has been tied up, and the envisaged equity commitment is supported
by Tata Sons, reported Business Standard. The Pune metro rail is being developed
by the Maharashtra and Union governments, with a 50% stake each. Tata Realty and Infrastructure (TRIL), a
subsidiary of Tata Sons, is making the aforesaid investment in the metro rail
SPV.
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Bulk Deal data
Parimal Jaswantrai Mehta sold 1,44,000 shares in
Akash Infra-Projects Limited at Rs 47.00 per share on the Nse.
Jeby Joseph sold 14,32,976 shares in Antarctica
Graphics Limited at Rs 1.05 per share on the Nse.
Bishwanath Prasad Agrawal sold 2,01,297,000 shares
in Axiscades Tech Limited at Rs 165.28 per share on the Nse.
MC Jain Infoservices Private Limited sold 18,00,000
shares in Coffee Day Enterprise Limited at Rs 58.37 per share on the Nse.
M/S Prarthana Enterprises sold 1,30,000 shares in
Euro (I) Fresh Foods Limited at Rs 170.07 per share on the Nse.
DII and FII data
Foreign institutional investors (FIIs) have bought
shares worth a net Rs 1,956.98 crore, whereas domestic institutional investors
(DIIs) sold shares worth a net Rs 1,268.43 crore on September 13, as per
provisional data available on the NSE.
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NSE F&O Ban
Ambuja Cements, Delta Corp and Indiabulls Housing
Finance have been placed under the F&O ban for September 14. Securities in
the ban period under the F&O segment include companies in which the
security has crossed 95% of the market-wide position limit.
