Stock Market Highlights September 19, 2024: Sensex, Nifty close higher after Fed rate cut; profit-booking caps gains

The Indian stock market closed higher on Thursday, September 19, 2024, with the BSE Sensex ending above the 83,000 level. The benchmark index hit an all-time high, gained 236.57 points or 0.29 per cent to close at 83,184.80, while the Nifty rose 38.25 points or 0.15 per cent to finish at 25,415.80. 

The market’s positive performance came in the wake of the US Federal Reserve’s decision to cut interest rates by 50 basis points, signalling the start of a new easing cycle. However, the gains were tempered by profit-booking at higher levels, particularly in the broader market. 

Among the top gainers on the NSE were NTPC (2.38 per cent), Titan (1.82 per cent), Nestle India (1.77 per cent), Kotak Mahindra Bank (1.76 per cent), and Tata Consumer Products (1.26 per cent). On the flip side, BPCL (-3.41 per cent), Coal India (-1.52 per cent), ONGC (-1.34 per cent), Adani Ports (-1.25 per cent), and Shriram Finance (-1.25 per cent) were the top losers. Read more

The rupee strengthened by 10 paise to hit a its two-month high level of 83.66 against the US dollar on Thursday after the US Federal Reserve cut the benchmark interest rate by 0.50 per cent, boosting investors’ sentiment.

Forex traders said massive buying in domestic equities and inflow of foreign funds also supported the local unit. Read more

Top gainers: NTPC (2.38%), Titan (1.82%), Nestle India (1.77%), Kotak (1.76%), Tata Consumer (1.26%) 

Top losers: BPCL (-3.41%), Coal India (-1.52%), ONGC (-1.34%), Adani Ports (-1.25%), Shriram Finance (-1.25%)

USDOE has recognised JSW Steel USA for achieving its energy savings goal as a partner in the Better Plants Challenge. JSW Steel USA has achieved energy savings of 25% through greater efficiency efforts across its portfolio. 

JSW Steel stock traded flat on the NSE at ₹949.45

SBI shares traded flat on the NSE at ₹790.45. The bank had raised ₹7,500 crore through issuance of Basel III-compliant Tier 2 bonds to qualified institutional bidders.

Top gainers on the NSE as at 3 pm: 

NTPC (2.22%), Kotak (1.65%), Nestle India (1.53%), Maruti (1.44%), Titan (1.34%), 

Top losers: 

BPCL (-3.41%), Coal India (-2%), ONGC (-2%), Adani Ports (-1.60%), Shriram Finance (-1.48%)

Stocks advanced on BSE at 3 pm on September 19, 2024, were 1,039 against 2,909 stocks that declined, and 103 remained unchanged. Total stocks traded were 4,051. The number of stocks that recorded a 52-week high was 231, and those that hit a 52-week low was 52. 

A total of 234 stocks traded in the upper circuit, and 337 in the lower circuit.

GR Logistics Park (Indore) Private Limited, wholly owned subsidiary of G R Infraprojects, is in receipt of a letter from Indore MMLP Private Limited dated 18th September 2024 for noting of financial close for the project w.e.f. 14th December 2023. 

G R Infraprojects stock declines 2.78% to ₹1,623.40 on the NSE

WhiteOak Capital Mutual Fund today announced the launch of their new fund offer (NFO) - ‘WhiteOak Capital Digital Bharat Fund’, an open-ended equity scheme investing in Technology and Technology related companies. The NFO opens on 20th September and closes on 4th October 2024.

WhiteOak Capital Digital Bharat Fund’s primary objective is to provide long-term capital appreciation by investing predominantly in equity and equity-related instruments of technology and technology-related companies.

SpiceJet, which has statutory dues of more than ₹601 crore, has received a good response for its ₹3,000 crore-worth sale of shares to qualified institutional buyers.

Siemens Ltd has received ‘no objection’ letter from NSE approving the scheme of arrangement amongst the Company (“Siemens Limited / Company / Demerged Company”), Siemens Energy India Limited (“SEIL / Resulting Company”) (a wholly owned subsidiary of SL.

Siemens stock trades at ₹6,709.10 on the NSE, down by 0.46%.

Sunshield Chemicals informed that Shekhar Pattekar, Factory Manager, has retired from the Company having attained the age of superannuation.

Vodafone Idea (-14.34%)

Indus Towers (-8.84%)

MTNL (-3.49%)

Railtel (-4.54%)

HFCL (-1.70%)

-- Santosh Meena, Head of Research, Swastika Investmart Ltd.

The midcap and smallcap segments, particularly sectors like defense, railways, and capital goods, which have performed exceptionally well over the past 2-3 years, are now witnessing a sharp correction. Valuations have long been a concern in the broader market, yet these stocks continued to rally despite being considered expensive. However, there always comes a point when market euphoria fades. Domestic institutions, too, have shown signs of caution, holding significant cash reserves at elevated levels. I believe this correction could extend further, presenting a strong buying opportunity in high-quality stocks for long-term investors.

Mphasis (-1.43%), HCL Tech (-1.14%), TCS (-1.01%)

Kaushalya logistics: Company announced that it has received a LOI to establish its second depot for JK Cement, in Amritsar, Punjab. Company will be responsible for overseeing rake operations, depot management, and secondary transportation at this new facility. The new depot, expected to start operations within 30 days, marks entry into the new state of Punjab. With an expected volume of 40,000 tons per annum, this depot will significantly capabilities in the region. Kaushalya Logistics will provide end-to-end logistics operations in Punjab.

Company has received an order worth INR 15 Cr from Nayara Energy Limited for CPP Boiler Bank & Water wall tubes replacement job., needs to be completed by Jul ’25. 

Company has received an order worth INR 1.3 Cr from Reliance Industries Limited for UG piping fabrication & laying including associated civil work for Train-1 (5 GW), PV Manufacturing Complex at Reliance Jamnagar, needs to be completed by Nov ’24. 

Company has received an order worth INR 95 L from Kalpataru Projects International Limited for cased crossing work, needs to be completed within 1 month.

Company has bagged work orders worth INR 30.1 Cr for Construction of Residential Building within 27 months. Company’s current order book stands at INR 1093 Cr and Unexecuted order book of INR 712 Cr as of 18th Sep 2024.

Company will be interacting with Analyst/ Investors on Thursday, 19th September, 2024 at 04:00 P.M.

On 1st Aug ‘24, BoD has approved the issuance of 34.4L equity shares and 50.1L equity warrants at INR83.8/each, aggregating to INR 70.8 Cr, on a Preferential basis to Promoters and Non-Promoters.

Bofa Securities Europe Sa bought 50.4k shares at INR 441/share, aggregating to INR 2.2 Cr.

The Supreme Court on Thursday rejected a request by telecom companies including Vodafone Idea and Bharti Airtel to recalculate how much they owe the government in licence fees, a court order showed.

Shares of Vodafone Idea and Indus Towers slumped around 15% each after the news, while Bharti Airtel briefly turned negative.

Shahlon Silk Industries Limited, a leading integrated textile company, is gearing up for entering into CETP (Common Effluent Treatment Plant) Business. 

Shahlon Silk stock surged 3.46% to trade at ₹24.81 on the BSE

Lokesh Machines informed that an intimation has been received from Department for Promotion of Industry and Internal Trade, Government of India, New Delhi, stating that the Licensing Committee has recommended for the grant of licence to Lokesh Machines Limited under the Arms Act, 1959 in Form VII for the manufacture of Fixed / Towed Heavy Machine Guns of caliber above 12.7mm and up to 30mm.

Shares surged 4.60% on the NSE to trade at ₹408.

Paradeep Phosphates informed that Ammonia and Urea Plants in Goa have now resumed production.

Stock trades at ₹83.37 on the NSE, lower by 3.59%.

“The Fed’s 50 bps rate cut comes as a positive surprise, signalling confidence in its inflation control measures. Markets reacted predictably—yields and stocks edged up, and gold rose. A weaker dollar will help US exports and improve the global economic outlook. The Fed also projects two more 25 bps rate cuts in 2024 and additional cuts through 2025 and 2026, which is positive for the global outlook. In India, with CPI inflation below the RBI’s target, similar rate cuts are possible. However, the key challenge remains liquidity in our system, as banks have sufficient deposits but are cautious in lending.”

Dev Information Technology has been awarded another order from RajCOMP Info Services Ltd. for “Study, Design, Development and Implementation of Online Portal for RERA 2.0, Rajasthan”. consideration approx ₹1 crore.

Dev Information Technology stock trades at ₹125.72 on the NSE, lower by 2.32%.

NTPC (3.49%), Newgen (3.22%), Bharti Airtel (2.97%), Policy Bazaar (2.46%), Naukri (1.71%), LTIMindtree (0.71%), Senco (0.64%)

Copper futures on the Multi Commodity Exchange (MCX) have been charting a sideways trend over the past two months. The contract has been oscillating between ₹775 and ₹816.

Bigbloc Construction has placed order for further installation of rooftop solar plant of 250 Kilo Watts which leads to total installation of approximately 700 Kilo Watts.

Stock inched up 0.75% to trade at ₹129.96 on the NSE.

Power Mech Projects has received work order worth ₹865 Crore for Operation and Maintenance (O&M) of 3X660 MW supercritical thermal power plant of Talwandi Sabo Power Limited (a subsidiary of Vedanta Limited) at Banawala village, Mansa District, Punjab.

Stock rose 1.39% on the NSE, trading at ₹6,563.

“One couldn’t ask for a more accurate reiteration of the proverbial “glass half full- glass half empty” scenario after Fed Chair Jerome Powell’s address. How should one look at the bumper 50 bps rate cut that the Fed frontloaded? Should one subscribe to Powell’s comment that the largely unanticipated rate cut “reflects growing confidence… that strength in labour markets can be maintained” or is this a veiled indication that the hiking of interest rates to a two-decade high has dearly cost the labour market, evidenced best from the weak August jobs report.

The three major indices ended the day in red, signalling that even with a 50 bps cut, the Fed is behind the curve and will need to unload bigger rate cuts before the damage to the labour market can be contained. While investors would be hankering for bigger cuts, the tone set by

Chair Powell, especially his comment that 50 bps won’t be the new pace of cuts will be a dampener injecting more volatility and panic in the markets. The action now shifts to the labour market, and more concrete data on the September jobs report (out on October 4) will be another key trigger for the markets.”

“The Fed’s 50 bps rate cut comes as a positive surprise, signalling confidence in its inflation control measures. Markets reacted predictably—yields and stocks edged up, and gold rose. A weaker dollar will help US exports and improve the global economic outlook. The Fed also projects two more 25 bps rate cuts in 2024 and additional cuts through 2025 and 2026, which is positive for the global outlook. In India, with CPI inflation below the RBI’s target, similar rate cuts are possible. However, the key challenge remains liquidity in our system, as banks have sufficient deposits but are cautious in lending.”

Caplin Point Far East Limited (Hong Kong), a wholly owned material subsidiary of Caplin Point Laboratories, has completed a Bonus Issue of 8,57,09,957 fully paid up equity shares (entailing the capitalisation of USD 1,09,88,456).

Caplin Point Laboratories stock declined 2.30% on the NSE, trading at ₹1,920.25.

Persistent Systems has been recognised as the fastest-growing IT services brand in the 2024 Brand Finance India 100 report. 

Stock trades flat on the NSE at ₹5,200.65.

As anticipated by the markets, FED is not maintaining a hawkish stance anymore. The rates have been cut by 50 bps as inflation hit near the target rate of 2%. RBI is still vigilant and might not move in the same direction as with the US. While inflation overall in the economy is below RBI’s target rate of 4%, food inflation remains a concern. But the overall improved global sentiment could trigger a rally in the markets because one- emerging markets like India will become all the more attractive and second- we could see reversal of FII outflows that we’ve been witnessing since past few months.

Top gainers on the NSE as at 12 noon:

NTPC (3.57%), Nestle India (2.14%), Hindustan Unilever (1.36%), Titan (1.36%), Kotak (1.18%)

Top losers:

BPCL (-3.53%), ONGC (-2.26%), Adani Ports (-2.13%), Coal India (-1.98%), Adani Enterprises (-1.98%)

Stocks advanced on BSE at 12 noon on September 19, 2024, were 865 against 2,943 stocks that declined, and 138 remained unchanged. Total stocks traded were 3,946. The number of stocks that recorded a 52-week high was 213, and those that hit a 52-week low was 42. 

A total of 220 stocks traded in the upper circuit, and 308 in the lower circuit.

JHS Svendgaard Laboratories Limited has completed the acquisition and registration of land in Jammu and Kashmir, marking a significant step in its expansion plans. The company announced today that it has acquired 18 Kanal 06 Marla of land in Hiranagar Kathua, J&K.

The higher-than-expected 50bps rate was cut by the US Fed after four years of strict maintenance of elevated rates to tame inflation. This rate cut comes at an opportune time and is also an influence of the slight dip in unemployment in the US. The gold price immediately recorded a record-high spike, as a reflection of the announcement. This scenario must be taken positively as the rate cut has opened doors for gold to scale new highs shortly, reinstating the might of the yellow metal as an investment haven.

Domestically, this price cut comes right at the onset of the gold-buying season in India and will reflect positively on the buying trend. Driven by the affinity and sentimental value of the yellow metal among the Indian population will continue to dominate buying this season and the rate cut will have less impact on the same. While we may witness some slowdown in demand for a brief period due to the shradh. Nonetheless, we are certain that the demand will remain upbeat for the remainder of the festive period Overall, we look forward to a strong festive season with a 10-15% rise in demand as compared to last year and the gold price to scale USD 2650 at the global level and INR 78,000 domestically.

Board of 360 ONE WAM Ltd has approved raising of funds via QIP for an aggregate amount not exceeding ₹2,250 Crore.

Shares declined 1.52% to trade at ₹1,064.85 on the NSE.

“The FOMC has started easing by cutting rates 50 basis points in line with market expectation. So, it is clear now that the worse than expected July employment data was the turning point. The Dot Plot is indicating an additional 50 bps of additional by year end. The focus is clearly back to maximum employment mandate of Federal reserve.

This looks like an apt decision from risk-management perspective, the economic cost of this pre-emptive 50 bps cut is lower than the cost of waiting and then being forced into a bigger cut later if incoming data suggest further deterioration in the labour market. Also note it is usually too late to cut rates by the time the evidence of labour-market deterioration is clear. 

Globally the other central bank which matters now is Bank of Japan. It has got competing considerations such as hot wages and inflation data pointing to the need to adjust policy rates higher versus the risk of market bumps that would call for more patience.”

Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL) -

Gold prices are hovering at $2570 (Rs 73000), just shy of $2600, as markets anticipate an enormous interest rate decrease by the Federal Reserve today, putting US Dollar bulls on the defensive and providing a tailwind for the yellow metal. The CME’s FedWatch Tool now predicts a 67% chance of a 50 basis point cut, while the probability of a lesser 25 basis point cut has dropped to 33%. The Bank of England and the Bank of Japan will hold their monthly monetary policy meetings on Thursday.

Furthermore, persistent geopolitical risks from continuing Middle Eastern hostilities, as well as political instability in the United States ahead of the November election, may drive up the gold price. The market’s attention remains focused on the critical FOMC policy decision, which, when combined with revised economic predictions, including the so-called ‘dot plot’, should provide a further lift to gold prices.

Nifty 50 began today’s session with a gap-up at 25,487 versus yesterday’s close of 25,378. It advanced further after opening and is now trading at 25,500, up 0.5 per cent so far.

Bank Nifty opened today’s session at 52,929 versus yesterday’s close of 52,750. The index moved up after opening and is currently hovering around 53,170, up 0.8 per cent.

The advance/decline ratio stands at 7/5, giving the index a positive bias. HDFC Bank, up 1.3 per cent, is the top gainer whereas Bandhan Bank, down 1.6 per cent, is the top loser.

Sridevi Khambhampaty has been appointed as Chief Executive Officer (CEO) of Shilpa Biologicals Private Limited, a wholly owned subsidiary of Shilpa Medicare Limited.

Bosch Limited has received an adjusted Environmental, Social, and Governance (ESG) score of 70.1 (Grade B+).

Stock trades flat on the NSE at ₹34,330.

Tilaknagar Industries announced an investment of ₹8 crore, through a mix of primary investment and secondary acquisition, to own a significant minority stake in Round the Cocktails Private Limited (“RTC” or “Bartisans”), the makers of „ready-to-pour‟ premium mixer brand, Bartisans. 

Stock rose 1.83% on the NSE, trading at ₹308.50.

OIL (-4.34%), BPCL (-2.26%), Hindustan Petroleum (-2.15%), GAIL (-2.11%)

Fedbank Financial Services informed that yesterday there was a web posting of an article which has also been published on the social media claiming that they have breached the database of Federal Bank, FedNet (an Indian bank) and their associated companies. They are also claiming that they have targeted the Company’s IT infrastructure by Ransomware attack. 

It clarified that “upon thorough investigation by our IT team, it has been confirmed that these claims are unfounded. Our team cross checked the details with internal records and established that the alleged breach pertains to an old, already known, and non-compromising data set from 2022. This appears to be a resurfaced and reshared post with no relevance to current operations. Furthermore, we affirm that there has been no breach of our core systems or any ransomware attack on our infrastructure.”

Fedbank Financial Services stock trades at ₹119.09 on the NSE, down by 0.30%.

The Federal Reserve’s benchmark policy rate has remained in the 5.25%-5.50% range for 14 months. A 50-bps rate cut by the Fed for first time since 2020 brings the cycle of elevated interest rates for longer to an end. Fed expects 2 more 25 basis point rate cuts in 2024, 100 bps of rate cuts in 2025 and 50 bps of cuts in 2026.

Lower interest rates in the US reduce returns on US-based investments. So global investors may seek higher returns in emerging markets like India, potentially increasing FPI and FDI. As foreign investors bring more dollars into India, the demand for the rupee increases, causing the rupee to appreciate against the US dollar. If the rupee appreciates due to higher capital inflows, it could lead to lower import costs, helping to reduce inflationary pressures. US Fed rate cut can positively affect India by boosting capital inflows, enhancing stock market performance, and reducing borrowing costs. However, it can also lead to challenges for exports due to a stronger rupee

Ion Exchange secured contract from Adani Power

Ion Exchange stock jumps 7.68% to trade at ₹696.85 on the NSE, while Adani Power stock slips 1.32% to ₹643.10.

Issue Period:- 19- September-24 to 20- September-24

For Non- Retail ( QIB +HNI ) open & close date - 19- September-24 (Today) 

For Retail open & close date – 20- September-24 

Floor Price: INR “1,400\u0009”

Closing Price on date of announcement: Rs. 1687.40\u0009

Current Market Price: 1687.40

Base Issue size: 3.00 Crs Shares – 11.72% of O/S Capital

Green Shoe Issue size: 1.00 Crs Shares – 3.91% of O/S Capital

Total Issue Size: 4.00 Crs equity shares (INR 5,600 Cr) – 15.6% of O/s Capital

Non-Retail Portion (QIB + HNI) - 90% of Offer Size - Bidding on 19-September -24 (Today) 

Total Issue Size: 3.60 Crs shares (INR 5,040 Cr)

Retail Portion - 10% of Offer Size - Bidding on 20- September-24

Total Issue Size: 0.40 Crs equity shares (INR 560 Cr)

Note : Upto Rs 2 lacs bids are classified as Retail and above non retail ( QIB + HNI )

Garden Reach Shipbuilders stock rose 2.02% on the NSE, trading at ₹1,751.85. Company had secured $54 million German order

From April 1 to September 17, STT collections exceeded ₹26,000 crore, marking a 96% increase compared to the previous year. 

GACM Technologies Limited has signed MOU with Waterwalk Automation Private Limited.

GACM Technologies stock trades at ₹1.20 on the NSE

Track live updates

The FOMC voted 11-1 to lower interest rates by 50 basis points. The goal of this rate reduction—the first in four years—is to strengthen the labor market. Additionally, the decision-makers have hinted that they want to reduce rates by an additional 50 basis points in the final two months of the year, in addition to four rate cuts in 2025 and two more in 2026. A 50 BPS reduction signals major concerns about the economy. While rate cuts are generally beneficial for markets, a large cut of 50 BPS is interpreted as a sign of economic trouble, which can dampen investor sentiment. The performance of banking stocks and other financial sectors, alongside the Fed’s comments, will be crucial in determining the market’s reaction towards the cut.

Global fintech IRIS Business Services Limited has announced a collaboration with the Government of Telangana to support growth of the MSME Ecosystem in the state.

IRIS stock trades flat on the BSE at ₹290

DCX Systems has received export orders from ELTA SYSTEMS LTD. Israel for US$ 18,495,779.10 (Equivalent to about ₹154.80 crore).

Shares were up 1.86% to trade at ₹345 on the NSE

Aditya Birla Capital stock surged 3.01% to trade at ₹233.98. Company had received a ‘no objection’ letter from the Reserve Bank of India (RBI) for the merger of Aditya Birla Finance with itself.

IREDA stock rose 2.47% on the NSE, trading at $233. The Government of India had approved the dilution of up to 7% shareholding in Indian Renewable Energy Development Agency (IREDA) through the Qualified Institutions Placement (QIP) route, in one or more tranches.

NTPC (3.31%), LTIMindtree (3.20%), Wipro (2.14%), Bajaj Auto (1.53%), Tata Motors (1.40%)

Top losers:

ONGC (-0.71%), BPCL (-0.36%), Bajaj Finserv (-0.29%), L&T (-0.05%)

-Raghvendra Nath, MD, Ladderup Wealth Management

“The rate cut today by the Fed was widely expected. However a 50 bps cut is a positive surprise. It indicates the confidence of the Federal Reserve on its policy outcomes over the last two years, as they stood steadfast on their resolve to bring down inflation. With inflation now within the targeted zone, but still a bit away, and Labour market conditions becoming a concern, the cut is coming at an opportune time. The market seems to be building another 50 bps rate cut in 2024 and a few further cuts in 2025. We feel that the Fed is not going to rush into reducing rates aggressively but act strictly based on data, as has been seen over the past two years.”

Ex Bonus 20 Sept 2024 (Tomorrow) 

Last date Trade for Before Bonus Today 

Axita Cotton Ltd 

Bonus issue 1:3\ 

Previous day Closing Price – Rs. 21.96\ 

The Phoenix Mills Ltd 

Bonus issue 1:1 

Previous day Closing Price – Rs. 3444.95\ 

RITES Ltd

Bonus issue 1:1 

Previous day Closing Price – Rs. 680.4 

Ujaas Energy Limited 

Bonus issue 1:4 

Previous day Closing Price – Rs. 559.25

Fedders Holding Limited.

Stock Split From Rs.10/- to Rs.1/-

Previous day Closing Price – Rs. 1120.85

Ex - Stock Split 20 Sept 2024 (Tomorrow)

Last day trade for before split Today

The US Federal Reserve cut key interest rates by 50 basis points to 4.75-5 per cent has significant implications for both the US and Indian economies. While US Fed Chair Jerome Powell highlighted the strength of the US economy, noting a cooling labour market and eased inflation, the decision raises questions about longer-term stability and potential risks.

With the US dollar weakening, gold prices surged as investors turned to safer assets. This pattern is likely to continue if economic uncertainty persists, as gold is traditionally seen as a hedge against market instability. The initial weakening of the US dollar supported the Indian rupee, making imports less expensive and temporarily benefiting India’s trade balance. 

The volatility in equity markets was driven by global investors seeking safer assets like gold. For the short term Indian market may face some volatility, however, in the medium to long term, India could still attract overseas investment due to its economic prospects, which would be beneficial for the stock markets. A slowdown in the US economy means reduced demand for Indian exports, especially in IT services, a sector heavily dependent on the US market. This could weigh on India’s export performance.

The short-term benefits for India, such as a stronger rupee and potential capital inflows, may be outweighed by challenges if the US economy continues to struggle, particularly for export-dependent sectors. The full impact on India’s economy will depend on how the US economy evolves and how global investors adjust their portfolios. The Reserve Bank of India may consider a pre-emptive 25 to 50 basis points rate cut before 2025.

“The US Fed cut the interest rate by 0.5% for the first time in the last 4 years. Such high monetary correction was earlier undertaken only during the global financial crisis, indicating the severity of the economic stress the US is going through. Decadal high inflation and stressed labour market conditions were the preamble for such aggressive monetary correction. The main agenda was to prevent the economy from slipping into recession because of the “higher for longer” strategy adopted by the US Fed. The street expectation was divided on the rate cut between 25bps and 50bps. It was a surprise element for a few market participants. With this 50 bps rate cut, the Fed has to wait for the incoming macro data before taking the next monetary decision. It’s likely that future rate cuts might be lower and spread out. This will continue to add to uncertainty in the equity markets. The equity markets reacted negatively and ended in the red. We can expect the broader Emerging economies to undertake rate-cut decisions. On the domestic front, RBI will focus on the data and might likely undertake a rate cut in December or 4Q FY 25. The FII flows can be outbound in the short term and as the US dollar starts easing, the flows can come back into India. The markets are expected to remain in range with positively biased.

Crude oil futures remained steady on Thursday morning as the US Federal Reserve reduced interest rates by 50 basis points on Wednesday. At 9.15 am on Thursday, November Brent oil futures were at $73.59, down by 0.08 per cent, and November crude oil futures on WTI (West Texas Intermediate) were at $69.86, down by 0.03 per cent. September crude oil futures were trading at ₹5928 on Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday against the previous close of ₹5913, up by 0.25 per cent, and October futures were trading at ₹5870 against the previous close of ₹5840, up by 0.51 per cent.

“The US central bank surprisingly cut its benchmark interest rates by 50 bps and hinted more cuts are likely before the end of the year. The Fed chair also noted that the central bank’s goal is to keep inflation stable without any adverse effects on the job market. 

After the rate cut decision, the US dollar turned higher putting pressure on gold like safe commodities. Earlier, there were expectations that lowering rates would cause a decline in the value of US currency and potentially lift the price of gold and silver. Gold in the key London market is trading down by 0.33 percent at $2566 an ounce while silver is down by 0.15 percent at $30.35 an ounce at 08.15am today.

However, the surprise rate cut suggests the US Fed is seriously taking the threat of a slowdown to the US economy could boost the safe haven demand for gold and silver in the immediate run.”

The Fed’s aggressive move, which brought the benchmark rate to 4.75-5 per cent, signalled progress on inflation control and sparked optimism among investors. Fed Chair Jerome Powell indicated that further rate cuts totalling 100 basis points are projected for this year.

Sharad Chandra Shukla, Director at Mehta Equities Ltd, commented, “Three cuts of 50 basis points in the next 12 months will trigger a feeling in the markets that recession fear is back. Fed will have to take the forward path cautiously.”

The rate cut decision had mixed effects on global markets. U.S. stocks initially rallied but ended lower as Powell cautioned against assuming big rate cuts would continue. Asian markets mostly rose in response to the news.

The move will provide a big relief for India

Indonesia, one of the largest exporters of palm oil, plans to cut export duty on palm oil early next month to support its farmers amid drop in demand.

The development will be a major relief for Indian importers particularly after the Government increased the customs duty on crude soyabean oil, crude palm oil, and crude sunflower oil from 20 per cent to 27.5 per cent.

AUBANK: MOSL gives buy call on AU Small Finance Bank, says earnings to clock nearly 32% CAGR over FY25-27. Although NIM may contract to 5.5-5.7% due to rising costs, improvements in disbursement yields & potential rate cuts are expected to enhance margin.

EW. TP Rs 262 

ABCL has received RBI’s approval for reverse merger scheme with its NBFC subsidiary 

Remove holdco discount on NBFC subsidiary, lifting PT to Rs263 

Think this is partially priced in 

Expect stock to open higher, limiting residual upside

Buy Call On Bajaj Auto, Target Raised To Rs 14,000 From 11,000

Hold Call On TVS, Target Raised To Rs 2,800 From 2,400 

Sustained Traction For CNG, e-2W, Africa Exports Drive Preference For Bajaj Over TVS 

Potential Launch Of Ericks Drive Preference For Bajaj Over TVS 

Valuations Are Rich Now; But, Relative To Its Peers, Earnings Resilience Score Better For Bajaj

Downgrade To Reduce, Target Rs 235 

Falling Oil Prices Expose Co’s Future Project Viability, Find It Hard To Be Bullish On Oil 

Declining Production Rates, Reduced Guidance For KG Field Our Key Concerns 

Risk Of Unrelated Capex Is Also One Of The Key Concerns 

Capex Intensity To Increase 

Weaker Performance Of Subsidiaries Can Impact Dividend

Buy Call, Target Rs 830 

Earnings To Clock Nearly 32% CAGR Over FY25-27 

NIM May Contract To 5.5-5.7% Due To Rising Costs 

Improvements In Disbursement Yields & Potential Rate Cuts Are Expected To Enhance Margin 

Est Operating Leverage To Improve Gradually With A C/I Projection Of 62% For FY25 

Estimate RoA To Improve To 1.8% By FY27 

Est RoA Improvement Aided By 24% Loan Growth, Resulting In 32% CAGR In Results Over FY25-27

Buy Call, Target Rs 3,725

Co Highlighted Residential Upcycle To Be Structural In Nature 

Residential Upcycle Could Last Over A Decade Hereon 

Co Confident Of Delivering Sustainable Growth Over The Years 

Continued Focus On Execution And Profitability

Buy, TP Rs 420

Management reiterated its standalone production growth guidance of 5-6% CAGR over FY25-27E, led by ramp-up in KG basin where higher realizations in both crude and gas and lower cess make economics attractive

Buy Call, Target Rs 390 

Management Maintained Its FY25 Capex Guidance & Remains Confident Of Uptick Until FY27 

Rs 1 Lk Cr Bids Are In Tendering Stages, Which Is Up 1.8x YoY, & Gives Visibility On Growth Ahead 

Believe Rs 12,700 Cr Order & Is Being Re-Tendered Will See Only Marginal Impact On Guidance 

Potential Stock Upside Drivers Ahead Are The Visible Bid Pipeline, Higher Dividend Payout

Buy Call, Target Rs 485 

Renewable Energy Bids Have Enhanced W/Awarding At 37-39 GW In FY24 Vs 8-9 GW YoY 

Co Is Moving Towards Its 60 GW 2032 RE Target And Has 24 GW Pipeline In Place 

RE Capacity Ramp-Up, Pilot Initiatives On Green Hydrogen Remain Rerating Drivers 

Medium-term Double-digit EPS CAGR Remain Rerating Driver

Buy, TP Rs 1970 

CO highlighted opportunity in mid/premium segment of both B2C & B2B markets & articulated Co’s strategy to grow in these segments 

Sees Rs300 ARPU in mobile segment 

& healthy growth & moderation in capex to improve FCF

Downgrade to Neutral, TP Rs 460

Express shipments subdued for e-com/slightly lower vs original est; cut shipment vol growth 

3PL outsourced shipment volumes lower than original est. on back of Meesho’s in-sourcing & rising share of quick-commerce

Initiate OW, TP Rs 818 

A Quintessential Play on First Cry 

Co well placed to capitalize on India’s growing childcare market through its FirstCry brand 

Multiple levers of growth &profitability improvement in place, with some option value through Globalbees

Buy, TP Rs 1365

Management highlighted smart metering as a new high-growth area

B2C interface is rising with access to 12+ mn consumers in Mumbai distribution biz 

Capital management program focus is on reducing volatility in int costs

JP Morgan on Westlife Food: Maintain Overweight on Company, target price at Rs 925/Sh (Positive) 

MS on Brainbees: Initiate Overweight on Company, target price at Rs 818/Sh (Positive) 

BofA on Brainbees: Initiate Buy on Company, target price at Rs 770/Sh (Positive) 

HSBC on Bajaj Auto: Maintain Buy on Company, raise target price at Rs 14000/Sh (Positive) 

HSBC on TVS Motors: Maintain Buy on Company, raise target price at Rs 2800/Sh (Positive) 

Jefferies on Power Grid: Maintain Buy on Company, target price at Rs 390/Sh (Positive) 

Jefferies on Adani Energy: Maintain Buy on Company, target price at Rs 1365/Sh (Positive) 

Jefferies on NTPC: Maintain Buy on Company, target price at Rs 485/Sh (Positive) 

Jefferies on Godrej Prop: Maintain Buy on Company, target price at Rs 3725/Sh (Positive) 

Emkay on Tata Motors: Upgrade to Buy on Company, target price at Rs 1175/Sh (Positive) 

MOSL on AU Bank: Maintain Buy on Company, target price at Rs 830/Sh (Positive) 

CLSA on Consumer: QC narrows price gap vs. DMart, with Zepto being the key aggressor (Positive) 

Macquarie on Rate Cut Beneficiaries: Apart from a potential long in Non-Bank financials, we find no obvious Fed rate cut trade in India (Positive) 

Citi on Exide Ind: Maintain Buy on Company, cut target price at Rs 560/Sh (Neutral) 

CLSA on Bajaj Auto: Maintain Underperform on Company, target price at Rs 7000/Sh (Neutral)

Silver fell as the dollar index soared above 101.3, recovering further from 14-month lows as investors reacted to Federal Reserve Chair Jerome Powell’s statements following the central bank’s massive rate decrease. The Federal Reserve slashed interest rates by 50 basis points, its first since the early days of the Covid epidemic. The central bank expressed confidence that inflation will continue to rise towards 2% and took steps to prevent a labour market slowdown. Meanwhile, Powell stated that the central bank is not rushing to loosen policy and that half-point reduction are not the “new pace.” He also stated that he does not expect the era of ultra-low interest rates to resume, and that the neutral rate will most likely be substantially higher than the previous regime.

Gold battled for pace as market participants absorbed Federal Reserve Chair Jerome Powell’s remarks following the US central bank’s massive rate cut. The Fed began a gradual easing of monetary policy on Wednesday with a half-percentage-point rate cut, with another half-point reduction expected by the end of this year. Following the rate-cut decision, Powell stated that he sees no signs of a recession or even an economic slump coming. He stated that the central bank is not in a hurry to lower interest rates and will do so at its own pace. According to the CME FedWatch tool, traders expect a 68% chance of a 25 basis-point decrease in November and a 32% possibility of a 50-bp cut.

NTPC: NTPC Green Energy files draft papers for Rs 10,000 crore IPO (Positive) 

Aurobindo Pharma: Company in pact to buy remaining 49% stake in GLS Pharma at Rs 381.12 per share (Positive) 

Pudumjee Paper: Company has awarded Contract for 15.4 MW Solar Power Project to Prozeal Green Energy Limited. (Positive) 

B.L.Kashyap: Company has secured new order aggregating to Rs. 221 Crores approx. (Positive) 

Nazara Tech: Company to issue Rs 900 cr of shares to identified investors. (Positive) 

Ion Exchange: Company gets Rs 161 crore order from Adani Power for water and environment management solution (Positive) 

NDR Auto Components: Company has received in-principle approval from BSE and NSE for issuing bonus shares in a 1:1 ratio. (Positive) 

Power Grid: India explores multi-source use of electricity grids to enhance renewable energy capacity. Company declared as successful bidder to establish inter-state transmission system. (Positive) 

Reliance Infra/ Reliance Power: Anil Ambani’s Reliance Infrastructure and Reliance Power slash debt by a cumulative ₹7,220 crore (Positive) 

AB Capital: RBI approves Aditya Birla Capital’s amalgamation of Aditya Birla Finance (Positive) 

Praveg: Company has received a Letter of Award from Tourism Corporation of Gujarat Limited for O&M of 30 Bhungas located at Dhordo, Gujarat (Positive) 

Liquor stocks: Andhra Pradesh approves new liquor policy, all liquor brands to be made available. (Positive) 

SpiceJet: Company’s QIP attracts investment from family offices of Madhu Kela, Akash Bhanshali, Sanjay Dangi, and Rohit Kothari. (Positive) 

Lupin: Company enters into non-exclusive patent license agreement with Takeda pharmaceutical company. (Positive) 

GILETTE: Structural margins have improved in FY24 driven by cost productivity and product innovation (Positive) 

Apollo Micro: Company said it has been shortlisted by the Armament Research and Development Establishment related to the production of PRACHAND munition hardware (Positive) 

Avenue Supermarts: Company has opened a new store at Narasaraopet, Palnadu, total number of stores as on date stands at 377. (Positive) 

Chaman Metallics: Company says commencement of pellet plant of group Company, commencement to benefit company’s operations, in production of sponge iron. (Positive) 

Garden Reach Shipbuilders: Company gets order for construction, delivery of additional 4 vessels worth $ 54 million. (Positive) 

BPCL: Company issues clarification on report “CPCB notice to BPCL for failing to install vapour recovery systems”, Company has installed VRS at ROS within prescribed timelines (Positive) 

Aavas financiers: Company to issue non-convertible debentures for upto Rs 6.30 billion (Neutral) 

IREDA: DIPAM allows dilution of up to 7% government holding in IREDA via QIP (Neutral) 

Allcargo Logistics: August LCL Volume Up 1% MoM & Up 5% YoY (Neutral) 

Dish TV: Company appoints Amit Kumar Verma as Chief Financial Officer (CFO) of the company (Neutral) 

Nippon Life: Company appoints Parag Joglekar as Chief Financial Officer (CFO) of the company (Neutral) 

MTNL: Company’s account gets downgraded to an NPA by PNB. (Neutral) 

Macrotech: Company will acquire additional stakes in three Maharashtra-based digital infrastructure firms for Rs 240 crore. (Neutral) 

SBI: Bank bags Rs 7,500 crore through its second tranche of tier-II bonds at a coupon of 7.33%. (Neutral) 

Ge T&D India: promoters to sell up to 15.6% stake via OFS on September 19 and 20. (Negative)

* AARTIIND

* BALRAMCHIN

* BIOCON

* BSOFT

* GNFC

* GRANULES

* LICHSG

* OFSS

* PNB

* RBLBANK

16.30 U.K. BoE Monetary Policy (Expected: 5.00% versus Previous: 5.00%)

18.00 U.S. Unemployment Claims (Expected: 230K versus Previous: 230K)

19.30 U.S. Existing Home Sales (Expected: 3.90M versus Previous: 3.95M)

Economic Calendar – 20.09.2024

06.30 CHINA 5-y Loan Prime Rate (Expected: 3.85% versus Previous: 3.85%)

TENT JAPAN BOJ Monetary Policy (Expected: 0.25% versus Previous: 0.25%)

TENT JAPAN BOJ Press Conference

11.30 U.K. Retail Sales m/m (Expected: 0.5% versus Previous: 0.5%)

20.30 EURO ECB President Lagarde Speaks

23.30 U.S. FOMC Member Harker Speaks

Nifty 50: Closed at 25,377, down by 0.16% 📉

Sensex: Closed at 82,948, down by 0.16% 📉

Market Volatility

India VIX: Up by 6.2%, now at 13.37 📈

Put Call Ratio of Nifty 50 (expiry: 19 Sep) is 0.9

Mid Cap & Small Cap Indices 📊

Mid Cap: Down by 0.7%, closing at 22,079 📉

Small Cap: Down by 0.34%, closing near 18,475 📉

Sectoral Highlights

Nifty Financial Services: Best performing sector, up by 1.4% 📈

Bank Nifty: Up by 1.08% 📈

Nifty IT: Down by 3.05% 📉

Top Gainers 📈

BSE Ltd: +16%, closing at ₹3,896

Graphite India Ltd: +9%, closing at ₹586

Top Loser 📉

Oracle Financial Services: -8%, closing at ₹11,259 

News 📰

HEG Ltd: Shares of HEG Ltd. rose 12.76% as the global graphite electrode industry shows signs of improvement following a price hike announcement. The stock closed at 8.6%: 

BSE Ltd shares hit a new 52-week high, driven by optimism about the upcoming IPO of the National Stock Exchange. The stock ended the day with 16.8% gains. 

Torrent Power Ltd shares surged by 10.66% after receiving a Letter of Intent for a significant energy storage project. The stock closed at 8.5%.

Mphasis shares dropped by 6.4% reaching an intraday low of Rs. 2,975.00. Investors of the IT sector booked profits ahead of the US Fed rate decision. Shares closed down 5.4

Jupiter Wagons has renamed its subsidiary Bonatrans India to Jupiter Tatrawagonka Railwheel Factory and is expanding its production capacity in Odisha from 20,000 to 100,000 forged wheelsets annually, with a Rs. 2,500 crore investment. The company has also partnered with Schuler Pressen GmbH to install a fully integrated forged wheel and axle production line.

The board of the National Stock Exchange (NSE) has set November 2 as the record date for its 4:1 bonus share issue, announced earlier in May. The company will issue four bonus shares for each share held by its shareholders.

Provisional Cash Rs. In Crs.

FII/FPI: NET BUY: +1153.69 

(11654 - 10500.31)

DII: NET BUY: +152.31 

(11794.51 - 11642.2)

The Hong Kong Monetary Authority (HKMA) on Thursday cut its base rate charged via the overnight discount window by 50 basis points to 5.25%, tracking a move by the U.S.

Domestic markets are expected to open flat on Thursday after the US Federal Reserve finally announced the much-anticipated 50 basis point rate cut. According to analysts, the market has already discounted the 50 bps rate cut. However, they added, the consolidation phase will continue.

According to Madhavi Arora, Economist at Emkay Global Research, the Fed kicked off its easing cycle with a somewhat surprising 50 bps cut, with the FOMC implicitly acknowledging that it had possibly kept rates higher for longer than needed. “Despite the outsized cut, Chair Powell emphasised that the economy remains in good health, and that 50bps is not going to be the pace of easing going ahead. The dot plot was also lowered, with the pace in line with a soft landing scenario rather than a recession. The contradiction between an outsized cut and a healthy economy proved tricky to justify, and markets are expecting much more easing than projected, with the UST curve bear-steepening on account of Powell’s pushback against larger cuts ahead. This start to the easing cycle provides some space to EMs to kick-start theirs too, but with low global volatility thus far, the RBI is likely to remain focused on domestic dynamics, with a first rate cut by December,” she added.

Here’s an interesting stock idea: The stock that we have today is Triveni Engineering & Industries. Early this week, the stock broke out of a key resistance. Although the price has moderated post the breakout, the uptrend is intact. We expect the rally to resume soon.

Net Collections, YOY comparison

- Corporate Tax : ₹4.53 lakh crore, up 10.5% 

- Personal Income Tax : ₹5.15 lakh crore, up 18.8%

- STT : ₹26,154 crore, up 96% 

- Other Taxes : ₹1,812 crore, up 10%

Total Net Collections : ₹9.96 Lakh crore, up 16.12%

- Federal Open Market Committee votes 11 to 1 to lower benchmark rate by 50 basis points to target range of 4.75%-5.0%, the first rate cut in more than four years

- Fed Governor Michelle Bowman votes against decision in favor of a smaller, quarter-point cut, the first such dissent since June 2022 and the first time a Fed governor has dissented since September 2005

- “Dot plot” of rate projections shows the median official expected to lower rates by a percentage point by year-end, implying two more quarter-point cuts or one larger, half-point cut; nine of 19 officials penciled in 75 basis points of cuts or less

- Median rate forecast for 2025 falls to 3.4% from 4.1% in June, implying four additional quarter- point moves next year

- Statement adds language to say the committee is “strongly committed to supporting maximum employment” in addition to returning inflation to its 2% goal

- Statement says that “in considering additional adjustments” to rates, officials will assess incoming data, evolving outlook and balance of risks

- Fed tweaks language to note job gains “have slowed;” says inflation “has made further progress toward the committee’s 2% objective but remains somewhat elevated”

- Statement says committee has gained greater confidence that inflation is moving sustainably toward 2% goal

- Statement notes that risks to achieving employment and inflation goals “are roughly in balance”

The Federal Reserve cut rates by 50 bps.

The median projection has two more 25 bps rate cuts in 2024, for a total of 100 bps this year.

Fed governor Miki Bowman dissented in favour of a smaller 25 bps cut. It’s the first dissent by a governor since 2005.

Fifty of the 78 announcements by the US Federal Reserve in the last 34 years has led to a positive change in Nifty the following trading day. The median Nifty return on the day after the Fed announcement is -0.2 per cent, a study by Capitalmind Financial Services said.

The Fed announced a 50- basis point (bp) rate cut 10 times in the last three decades, which has resulted in a median return of 1.6 per cent for the Nifty. A 25-bp cut has been followed by -0.5 per cent median Nifty returns. The most frequent Fed action has been an increase of 25 bps, which has been done 39 times over the last three decades.

Buzzing stocks: IREDA, MTNL, PNB, GE T&D, NTPC, Zomato, Macrotech, Nazara, Restaurant Brands, SpiceJet, Aditya Birla Capital, Pudumjee Paper, BL Kashyap, Garde Reach

Here are the intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS, and SBI

The stock of Triveni Engineering & Industries broke out of a resistance at ₹480 early this week. But after marking a record high of ₹518.10 on Monday, the price started to soften. However, the decline over the past couple of sessions appears to be just a corrective move.