NIFTY Financial News

rupee witnessed a range-bound trading against the US dollar in early trade on Wednesday, as the support from positive macroeconomic data was negated by elevated crude oil prices and a firm American currency. Forex traders said domestic retail inflation data and industrial production figures were better than market expectations and supported investors' sentiments. However, investors are awaiting cues from the CPI data from the US to know the path the US FED will tread in its fight for lower inflation. At the interbank foreign exchange, the rupee was trading in a narrow range.

Jubilant Foodworks Ltd. slipped 1.78 per cent to Rs 518.4 in Wednesday's trade.

Indian Railway Finance Corporation (IRFC), Rail Vikas Nigam, IRCON International, and RailTel Corporation of India slumped 4% to 8% on Tuesday's trading session. Analysts say that although the performance may not be as strong as the current run from the previous week, but railway stocks are expected to be in an uptrend moving forward. Corrective phases in midcaps and small caps were another factor weighing on the railway stocks.

ICICI Lombard General Insurance Company Ltd. slipped 0.08 per cent to Rs 1349.2 in Wednesday's trade as of 11:06AM (IST). The stock hit a high price of Rs 1362.35 and low of Rs 1338.9 during the session. The return on equity (ROE) for the stock stood at 16.55 per cent.

Indiabulls Real Estate Ltd.(up 3.65 per cent), Sobha Ltd.(up 1.84 per cent), Mahindra Lifespace Developers Ltd.(up 1.13 per cent) and Prestige Estates Projects Ltd.(up 0.37 per cent) were among the top gainers. Macrotech Developers Ltd.(down 5.31 per cent), Phoenix Mills Ltd.(down 2.85 per cent), Brigade Enterprises Ltd.(down 1.12 per cent), Oberoi Realty Ltd.(down 1.09 per cent) and Godrej Properties Ltd.(down 0.61 per cent) were the top losers on the index. The Nifty Realty index was down 1.26 per cent at 569.95 at the time of writing this report. Benchmark NSE Nifty50 index was up 11.1 points at 20004.3, while the BSE Sensex was up 41.7 points at 67262.83. Among the 50 stocks in the Nifty index, 24 were trading in the green, while 24 were in the red. Shares of Indian Railway Fin, Suzlon Energy, JP Power, Vodafone Idea and YES Bank were among the most traded shares on the NSE. Shares of PDS Multi&Fash, Ajanta Pharma, KEC Int., Cadsys(India)Ltd.

Nifty both showed significant volatility throughout the session, while the mid- and small-cap markets saw a big wave of selloffs. Despite new valuation concerns, the market declined.

retail inflation eased in August, but remained above the upper end of the central bank’s target band for a second consecutive month. The CPI inflation in August fell to 6.83% from 7.44% in July. The Index of Industrial Production (IIP) rose by 5.7% in July, according to the official data.

Siddhartha Khemka, Vice President, Head of Research, MOFSL, says “the premium is now about 15-20% and mid and smallcap space is where one needs to be cautious. We do not believe that there is going to be a full large scale selling in the mid and small caps but a healthy profit booking is definitely advisable and that is something that we have been talking to customers about but it is not a broad-based profit booking that we are advising.”Are you recommending booking profits anywhere? We are seeing quite a cool-off in some of the capital goods names, power financiers, railway and even defence stocks.What has been happening is we have been sounding some cautiousness in the broader market, be it the midcaps or smallcaps, given that the kind of rally that they have seen in the last couple of months and also because if you look at the valuations, our midcap index is trading at about 24 times one year forward 24 to 25 times roughly on a one-year forward basis – compared to Nifty which at 20,000 is trading at about 21 times on a FY24 peak.

large cap funds as a core holding in their portfolio as such companies are better prepared than smaller companies to manage risk. Investors can participate in such companies using mutual fund schemes.How can an investor take exposure to large cap stocks using mutual funds?Large cap stocks are present in several mutual fund categories. While large cap funds have a minimum allocation of 80% to large cap stocks ranked 1-100 by market capitalisation, multi cap schemes need to have a minimum allocation of 25% to large caps. Although flexi cap and focused schemes are free to choose stocks based on the fund manager’s view of the market, most schemes end up allocating 50-70% to large cap stocks. There are many passive mutual fund schemes that mimic the index and give exposure to large cap stocks. Passively-managed schemes that track the Nifty 50, S&P BSE Sensex, Nifty Next 50, Equal Weight Nifty, and Nifty 100 have a portfolio of large cap stocks.What advantages do actively-managed large cap funds offer over passive funds?Passive funds invest in stocks in the same proportion of the index that they track. They have a low cost compared to active funds. However, actively managed funds give flexibility to buy stocks and allocate on the fund manager’s view of the market. The fund manager is free to decide the allocation to each stock in the portfolio, with the maximum allocation to a single stock at 10%. Based on the fund manager’s view of the market and valuations, s/he is free to exclude any stock or have a low weight.

BHEL), Chambal Fertilizers & Chemicals, Delta Corp, Hindustan Copper, The India Cements, Indiabulls Housing Finance, Manappuram Finance, Punjab National Bank (PNB), National Aluminium Company and Steel Authority of India (SAIL). The F&O contracts of any stock enter the ban period when the open interest (OI) on it crosses 95% of the market-wide positions limits or MWPL. The ban on it is reversed only if the open interest falls below 80%. Traders who trade in indices do not encounter a situation of security ban. For BHEL, MWPL stood at 80.9% on Tuesday with OI reported by Trendlyne at 64.8 million. It was down 20.1% from the previous session. The MWPL for Delta Corp stood at 84.2% with OI at 13.7 million.

Indian stock market is expected to open on a cautious note Wednesday tracking mixed cues from global peers. The Asian markets traded mixed, while the US stock market ended lower overnight dragged by weakness in tech stocks. Investors’ sentiment may dampen as a surge in crude oil prices, with Brent oil trading above $92 a barrel, is expected to stoke inflation fears ahead of US inflation data.

Day trading guide for today: Domestic equity benchmarks Sensex and Nifty settled lower in the previous session, exhibiting significant volatility with the mid and smallcap spaces witnessing a strong wave of selloffs. Investors booked profits after the blue-chip index hit a record high near the open, while the small-caps and mid-caps snapped an 11-session winning run. Sensex closed at 67,221.13, up 94 points, or 0.14 per cent while the Nifty closed the day at 19,993.20, down 3 points, or 0.02 per cent.

Read More)Wipro Holdings (UK) has completed the transfer of its entire shareholding in Wipro 4C NV to Wipro IT Services UK Societas, with the effective date being September 12, according to reports. Both Wipro Holdings (UK) and Wipro IT Services UK Societas are wholly-owned subsidiaries of the company, while Wipro 4C NV operates as a step-down subsidiary.

Indian stock market is expected to open flat with a positive bias tracking mixed cues from global peers. The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 20,073 level as compared to the Nifty futures’ previous close of 20,037.

«Overall, we expect the focus to shift from mid and small caps to large caps in the near term, as investors may turn cautious on the broader market,» said Siddhartha Khemka, Head — Retail Research, Motilal Oswal Financial Services. Here's breaking down the pre-market actions:STATE OF THE MARKETSGIFT Nifty (Earlier SGX Nifty) signals a positive startGIFT Nifty on the NSE IX traded 43.5 points, or 0.22 per cent, at 20,073.50, signaling that Dalal Street was headed for positive start on Wednesday.

smallcap stocks, one can contemplate buying large-cap banking or finance stocks, which could minimize downside risks, according to analysts. Both the Nifty Bank and Nifty Financial Services indices have underperformed the broader Nifty index in six months.

Information Technology companies such as TCS and Infosys firmed up in Tuesday's trading, bucking the broader weakness in the market, as investors and traders perceive these shares as defensive bets if sentiment sours further. The Nifty IT Index jumped 1% on Tuesday, while the benchmark Nifty ended almost flat.

Mid-cap and small-cap shares crumbled on Tuesday, leading the sell-off in the stock market, as worries about these segments being overheated after the recent record-breaking rally prompted investors and traders to dump them. The Nifty Midcap 150 index dropped 3% and Nifty Small-cap 250 fell 3.9%, Nifty Microcap 250 declined 5.2% on Tuesday — their biggest single-day declines since December 23, 2022. NSE's Nifty ended 3.15 points lower at 19,993.2 after hitting an all-time high of 20,110.3 earlier in the day. BSE's Sensex gained 94 points or 0.14% to close at 67,221.1 — a new record closing.

ET Intelligence Group: The small is getting larger in the current leg of the market rally. The combined market capitalisation of the NSE Small Cap 100 and the NSE Midcap indices has reached a decade high 39% of the benchmark Nifty 50 market value according to the data from Bloomberg.

DHARMESH SHAHHead-Technicals, ICICI SecuritiesWHAT DO THE TECHNICAL INDICATORS INDICATE ON MID AND SMALL-CAP STOCKS? We are in a structural bull market depicted by the acceleration of upward momentum in broader market post breakout from the fi ve-year consolidations of the Nifty Midcap vs. Nifty ratio line.

Shares of defence firms, Public Sector Undertakings (PSUs) and firms deriving business from Railways-the darlings on Dalal Street in the recent run-up- tumbled on Tuesday as investors dumped them with risk aversion gripping the stock market. Analysts said concerns that many of these stocks were overbought following recent gains weighed on investor sentiment. Among defence stocks Bharat Electronics, Hindustan Aeronautics, Bharat Dynamics, and Garden Reach Shipbuilders & Engineers declined 3 -9%.