MarketBuzz
1331: The Marketbuzz Podcast: Will Nifty follow a sell-on-rallies template?
(upbeat rock music) Good morning and welcome to CNBC TV18's Market Bus Podcast. I am Harmas Vatakya. Well, looking at the kind of sell-off that once on Wall Street on Friday and what the gift NFT was suggesting yesterday morning, if you are a bull, you would take yesterday's closing on the NFT with both hands and gleefully as well. The bulls would have definitely had a good night's sleep because the NFT not only recovered from the lows of the day by over 200 points, but also closed at the highest point of the day. And while it did not manage to test 25,000 on the upside, that does not seem to distant considering the handover we have received from Wall Street. After the worst start to the month of September on record with data dating back to as early as 1953, the benchmark indices on Wall Street saw a rebound on Monday with the indices gaining over a percent each. All eyes are now on the consumer price and the producer price inflation data in the US, which will be reported on Wednesday evening and Thursday evening respectively, Indian Standard Time. Looking at Wall Street, Asia has also opened largely higher and the gift NFT is indicating a gap up. If you can say that a 50-point uptick is what the implied open is suggesting for our own markets as well. Now, if the NFT moved higher yesterday, it has the NFT bank and FMCG stocks to thank as they were the top performers in yesterday's session. Heavyweights like HUL, ITC, HDFC Bank, ICICI Bank, all of them put their hand up to ensure that the NFT ends in the green. That too, with healthy gains on a day that was a rather painful one for the broader markets. Yes, the broader markets do remain an area of concern and even if the mid and the small gap indices recovered from the lows of the day, they did close in the red. PSUs in particular continue to see selling pressure with the PSE index having lost nearly 10% from its peak that it had hit on the 1st of August this year, which brings me to the two most important questions for the day. One, if the NFT does see a rebound as it is projected to be, do the traders use this bounce as a way to exit their longs following the sell-on rallies template? And two, will this broader market underperformance continue regardless of how the benchmark indices are fairing? Now, today is also the financial services index weekly expiry and that will also keep the NFT bank in focus. Now, the problem with indices like the NFT bank has been that they have not managed to see healthy follow-up buying after a relatively good day, which yesterday was. Now, it will be interesting to see if there is some follow-up buying in today's session. Now, in some key stocks, we will start off with those that have a direct connect with the GST council. First up, insurance names, no direct decision made yet. The council has now set up a group of ministers to further discuss potential rate reductions. Because he foods, Gopal snacks, Pertop snacks and others will also be in focus because the GST council has decided to cut the rates on Namkin to 12% from 18% earlier and pharma stocks because the GST on cancer drugs has been cut to 5% from 12% earlier. Besides these GST stocks, Alwalia contracts for winning two orders were 1,300 crore, GMR Infra, who will buy an additional 10% in Delhi airport for $126 million. Dixon technology is because its subsidiary, Padgett, signed an MOU with HP India Sales to manufacture notebooks, desktops and all-in-one PCs. A couple of QIPs, Sona BLW closed its 2,400 crore institutional share sale. But the interesting bit here is that SBI mutual fund has received 25% of the shares on offer. Mrs. Bector's foods also closed its 400 crore QIP, which shares being issued to the government of Singapore, Manolife, DSP, among other such funds. Also watch out for Oracle Financial because the parent company Oracle Corporation reported a very strong quarter and the stock jumped 9% in extended trading on Wall Street. Oracle Financial in India shares have already risen 150% so far in 2024. Lastly, you also keep an eye out on Adani Enterprises, where Bloomberg is reporting that a Kenyan court has suspended a government plan to allow Adani airports to operate its main airport for 30 years until it rules on the matter. CNBC TV 18 has not independently verified this story. Now on the primary market side, Bajaj Housing Finance's IPO was subscribed 2.2 times on the first day and PM Gargill Jewelers' 1100 crore PIPO also opens for subscription today. So now there are four IPOs that are currently open for subscription. That's all for today, we wish you a safe trading day and of course for the sharpest market insights, stay tuned to CNBC TV 18 and CNBC TV 18.com. (upbeat music) [MUSIC PLAYING] [BLANK_AUDIO]