Market Update: Gift Nifty Falls 78 Points, PC Jeweller's OTS Approval, Nazara Tech Seals Moonshine Deal & Today's Top Buzzing Stocks

The Indian equity markets witnessed a reversal in momentum as the trading session progressed, with benchmark indices turning negative by the close of the day. Both the BSE Sensex and the NSE Nifty50, after hitting fresh all-time highs earlier in the day, retreated to finish Friday’s session in negative territory, marking a subdued end to the week.

By the closing bell on Friday, the BSE Sensex had declined by 264 points, a fall of 0.3%, while the NSE Nifty slipped by 41 points, or 0.2%. Despite the initial optimism that drove the indices to record highs, the markets couldn’t sustain their upward trajectory as selling pressure emerged, particularly in banking and telecom stocks.

Sectoral Performance: Mixed Sentiment Across Key Sectors

The session saw a mixed performance across various sectors. Stocks in the metal and oil & gas sectors showed resilience, with notable buying activity that helped cushion the broader market’s losses. On the other hand, the realty and telecom sectors faced significant selling pressure, contributing to the overall downward momentum.

Among the top gainers were Bharat Petroleum Corporation Ltd. (BPCL), Cipla, and Sun Pharma, while key banking players like HDFC Bank, ICICI Bank, and telecom major Bharti Airtel were the top losers of the day.

The BSE MidCap Index provided some relief, ending 0.3% higher, while the BSE SmallCap index remained largely flat, reflecting the mixed sentiment in broader market segments.

Precious Metals and Global Cues

In the commodities space, gold prices witnessed a slight dip during Indian market hours. The latest contract on the Multi Commodity Exchange (MCX) showed gold prices trading 0.2% lower at ₹76,135 per 10 grams. This decline in gold prices mirrored global trends as investors exercised caution ahead of key economic data releases and global market developments.

As Indian markets gear up for the new trading week, the Gift Nifty, which serves as an indicator for the Indian markets, was trading 78 points lower at 26,276 levels as of 8:00 AM, signaling a potential weak opening for Indian equities today.

Top Buzzing Stocks: Key Movers to Watch

Several stocks are poised to remain in focus today, driven by significant corporate developments and market activity:

1. SJVN: Shares of SJVN surged by as much as 3.5% on 27 September after the company signed two Memorandums of Understanding (MoUs) with the Government of Maharashtra. The agreements aim to develop Pumped Storage Projects (PSPs) and Floating Solar Projects (FSPs) in the state, underscoring SJVN’s strategic focus on renewable energy.

2. Bharat Petroleum Corporation Ltd. (BPCL): BPCL shares made headlines as they jumped nearly 7%, reaching a record high of ₹370.5. The surge was driven by heavy volumes, with over three crore shares changing hands on the BSE and NSE combined. This sharp uptick followed news of BPCL’s recent award of a production concession in Abu Dhabi, in collaboration with Indian Oil Corporation (IOC).

PC Jeweller Receives One-Time Settlement (OTS) Approval

In a significant development, PC Jeweller announced on 27 September 2024 that it had received approval from the Bank of India for a one-time settlement (OTS) of its outstanding dues. The company’s financial troubles date back to February 2023, when it defaulted on loans totaling ₹34.7 billion from various banks and financial institutions.

In its latest annual report for fiscal year 2021-22, PC Jeweller revealed that it owed ₹32.8 billion to 14 banks, including major lenders like the State Bank of India (SBI), Union Bank of India, Punjab National Bank (PNB), and Indian Bank. The company’s largest creditor is SBI, with outstanding dues of ₹10.6 billion.

The board of PC Jeweller Is scheduled to meet on 30 September to consider a potential sub-division or stock split of its existing equity shares, a move that could make the stock more affordable to a wider pool of investors.

Nazara Technologies Completes Investment in Moonshine Tech

Nazara Technologies, a prominent player in the online gaming industry, has completed its ₹1.5 billion investment in Moonshine Technology, the parent company of online poker platform PokerBaazi. This marks the second phase of Nazara’s larger ₹9.8 billion acquisition deal for a significant stake in Moonshine.

Rekha Jhunjhunwala, who holds an 8.4% stake in Nazara Technologies, is backing the company’s aggressive expansion into online skill-based gaming. Despite regulatory headwinds in the form of a 28% Goods and Services Tax (GST) imposed on online gaming platforms, Nazara remains committed to its long-term strategy, focusing on the sector’s growth potential.

The high GST rate, introduced in October 2022, has been a point of contention for the online gaming industry, as it applies to the full value of bets placed rather than just the platform’s revenue. This taxation structure has sparked concerns about the profitability of gaming companies. Nevertheless, Nazara is betting on the long-term sustainability and growth of the online gaming space.

Sequent Scientific and Viyash Life Sciences Announce Merger

Sequent Scientific and Viyash Life Sciences have announced their merger, a strategic move that will create a leading platform in the animal pharmaceuticals market. This merger will enhance the companies’ end-to-end capabilities across the global pharmaceutical industry, with a strong focus on research and development.

Carlyle, a major shareholder in both companies, has supported the merger as a step toward strengthening Sequent’s operational and R&D capabilities. With combined operating profits of over ₹2.5 billion in FY 2023-24, the merged entity is expected to hold a prominent position in the global animal health market.

Outlook for the Indian Markets

As Indian markets open for a new trading week, investors are expected to keep a close eye on global economic cues, corporate developments, and sectoral performance. With the Gift Nifty signaling a weak start, market participants should brace for potential volatility, particularly in sectors such as banking, telecom, and realty. The focus will also be on the buzzing stocks mentioned, as their performance could influence broader market sentiment.

The coming days will reveal whether the markets can regain their upward momentum or continue to face selling pressure amid global uncertainties and domestic challenges.