MarketBuzz
1317: The Marketbuzz Podcast: Can Nifty sustain above 24,600? Companies on fund raising spree
Good morning and welcome to CNPC TV18's Market Bus Podcast time, Hormis Patakea. It is yet another day when the Gif Nifty is indicating a positive start for our own markets and that is courtesy of the strong handover that we have received from Wall Street Asian markets to have opened mostly higher and the Wall Street handover as I said was very positive because the S&P 500 and the NASDAQ ended higher for the eighth day in a row on Monday with the tech heavy index back near that mark of 18,000. Now this is a very strong reversal from the sharp selloff that we had seen at the start of August which had even pushed the NASDAQ into correction territory. Now the indices have not only recovered all of those losses but are now trading well above those levels before the selloff began. Now will that continue to have a positive effect on our IT stocks remains to be seen but the Nifty IT was up for the sixth day in a row yesterday and is near a record high and most of the stocks are participating in this up move. First-source solutions is one of them and the stock has been on a tear ever since the RPSG Group Chairman Sanjeev Goinka shared a bullish outlook for the company in an exclusive interaction with CNBC TV18. The stock is already up 40% in just the last one month. But for the benchmark indices, it was not as if the Nifty had a bad day yesterday, yes it was range bound but it was positively range bound as it ended with gains. Now 24650 is the immediate hurdle followed by 24750 and 24800 so yes we are nearing a resistance zone and the index will have to convincingly move beyond those levels to reclaim the previous record highs which are beyond levels of 25000. Now the Nifty bank has been one of the key reasons why the Nifty has either underperformed or its upside has been kept in check. Now the index traded in a 450 point range on Monday but it managed to hold on to 50000 but it continues to face resistance at that 50800 mark because it reversed from that high of 50728. Now with Tuesday being the expiry for the financial services index, the Nifty bank will also remain in focus and that will determine the Nifty trajectory to a large extent. Some stocks that should be on your radar today, Tata Motors has fixed the 1st of September as the record date for its capital reduction program. Now the shareholders who have the shares of the DVR will get 7 fully paid up shares of Tata Motors with a face value of 2 rupees for every 10 shares of the DVR that they have as of the record date which is the 1st of September. Now after Maaruti, Bajaj Auto has also announced that it will have to create a deferred tax provision of 211 crore in the current quarter due to the removal of the indexation benefits on debt mutual funds. India's software would consider a buyback of its shares on 22 August which is when the board meeting is scheduled for and therefore it has now become the 15th company to announce a buyback after the union budget which was announced just a month ago. Then some fundraising updates, high-tech pipes has approved raising 600 crore through a QIP and other methods. Pauline Medicare has launched a QIP to raise funds and the floor price is at 11% discount to Monday's close. Suraj estates will also raise around 500 crore through a preferential issue of shares and convertible warrants and not keep an eye out on Indicine Bank because it has received approval from the Reserve Bank of India to set up a wholly owned asset management business. Now the most of the market yesterday was subdued but there was plenty of action in the small cap space. We keep an eye out on that particularly the capital market linked names be it CDSL, cams, IIFL finance, all of them IFL securities for that matter but all of these stocks were in action yesterday and we will see if those stocks move today as well. There are plenty of others to keep an eye out for so you can read all of that on cnbctv18.com and watch all of that on cnbctv18 as well. That's all for today. Thank you so much for tuning in we wish you a happy and safe trading day. [Music] [Music] (upbeat music) [BLANK_AUDIO]