Indian Equities Hit Record High on Strong Domestic Fundamentals
The Indian stock markets continued their winning streak on September 11, with the benchmark Nifty closing at a record high of 19,996.30. The Sensex rose 528.17 points or 0.79% to 67,127.08, while the Nifty gained 176.30 points or 0.89% to 19,996.30.
The market was buoyed by strong domestic fundamentals, including robust economic growth and positive corporate earnings. The Indian economy grew at a robust 8.7% in the first quarter of the current financial year, beating expectations. This was the fastest pace of growth in 17 quarters. The growth was driven by a strong rebound in manufacturing and services sectors.
Corporate earnings have also been strong so far in the current financial year. The BSE Sensex Corporate Profitability Index, which measures the profitability of the 30 companies listed on the BSE Sensex, has risen by 20% year-on-year.
In addition, foreign investors have been net buyers of Indian equities in recent weeks. They have bought a net of $2.3 billion worth of Indian equities in the month of September so far.
Technical analysts said that the Nifty is now in an overbought position and could see some consolidation in the near term. However, they expect the market to continue to trend higher in the long term.
The outlook for September 12 is positive, with the Nifty likely to test the 20,100-20,200 resistance zone. However, investors should remain cautious in the midcap and smallcap space, as these sectors are already trading at elevated valuations.
Here are some additional factors that could influence the market in the near term:
- The outcome of the upcoming monetary policy meeting of the Reserve Bank of India (RBI).
- The release of key economic data, such as the IIP and CPI inflation numbers.
- Global cues, such as the performance of the US markets and the direction of crude oil prices.
Investors should focus on quality stocks with good fundamentals and avoid chasing high-flying stocks. They should also maintain a balanced portfolio and rebalance it periodically to reduce risk.
- 22 Sep
NBCC shares trade higher on Rs 100 crore work order from SAIL
NBCC shares were trading 3 percent higher on September 22 after the company announced having bagged a work order worth Rs 100 crore from SAIL. This is the fourth order-win announced by the company in this month, the total value of the same being Rs 450 crore. NBCC is a public sector undertaking engaged in the business of construction and real estate development. The company specializes in providing project management, consultancy and engineering services for civil construction, infrastructure development, and real estate projects.
- 22 Sep
Glenmark Pharma stock falls on stake sale in Glenmark Life Sciences
Glenmark Pharma stock fell after the company announced it would sell a 75% stake in its subsidiary Glenmark Life Sciences to Nirma. Analysts expect the stake sale to benefit Glenmark Pharma, as it will transition from a net debt position to a cash surplus position. This is expected to have a positive impact on the company's return ratios over the next two to three years.
- 22 Sep
Berger Paints Shares Hit 52-Week High After Turning Ex-Bonus
Berger Paints shares surged 6% to hit a 52-week high after turning ex-bonus on the record date for the issue of bonus shares in the ratio 1:5. The company posted a net profit of Rs 326.3 crore in the April-June quarter of FY24, up 39% year-on-year, on revenue of Rs 2,739.7 crore, up 10% year-on-year. The company expects to get net cash positive by the end of this fiscal year and expects to end the year with double-digit revenue growth on strong demand outlook.
- 22 Sep
Market Update for September 22, 2023
IdeaForge Tech up 3.4% on order RVNL up 3% on highway MoU JSW Steel up 0.4% on sale ICICI Lombard down 1.6% on CEO exit ICICI Bank down 1% on healthcare investment NHPC up 1.3% on extended additional charge Kalyani Forge up 3.2% on new MD IRB Infra up 2.5% on road project closure
- 22 Sep
Lux Industries Shares Down 3% After Income Tax Raid
Lux Industries shares fell 3% on September 22 after news emerged that the Income Tax department had conducted searches at the company's premises in Kolkata and alleged a tax evasion of Rs 200 crore. The company has confirmed the searches and is extending full support.