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Market Headstart | Info Edge, Muthoot and 3 other stocks moved to largecap category

Trends on SGX Nifty indicate a negative opening for the broader indices in India, a loss of 55.5 points or 0.45 percent. Nifty futures were trading around 12,193-level on the Singaporean Exchange.

January 06, 2020 / 09:18 AM IST

The Indian equity market is likely to trade in a range this week amid escalating tension between the US and Iran.

Trends on SGX Nifty indicate a negative opening for the broader indices in India, a loss of 55.5 points, or 0.45 percent. Nifty futures were trading around 12,193-level on the Singaporean Exchange.

BSE Sensex ended the last session of the week gone by lower by 162 points, or 0.39 percent, down at 41,464.61, while the NSE benchmark Nifty settled with a loss of 56 points, or 45 percent, at 12,226.65.

The S&P BSE Sensex fell 0.18 percent, while the Nifty50 was down by 0.27 percent for the week ended January 3 compared to the 1.2 percent rally seen in the S&P BSE Midcap index, and over 3 percent gain seen in the S&P BSE Smallcap index in the same period.

Benchmark indices witnessed a knee-jerk reaction after the United States of America's airstrike in Iraq, which killed top Iranian commander Qassem Soleimani and fuelled risk-off sentiment.

Reacting to the news, the crude oil prices rose by about $3/bbl, and the Rupee plunged 0.54 percent against the US Dollar, Reuters reported.

As many as 146 stocks in the S&P BSE Smallcap index rose 10-40 percent in five trading sessions. These include Monnet Ispat, Indiabulls Real Estate, Suzlon Energy, VA Tech Wabag, and Reliance Industrial Infrastructure.

In the Midcap space, four stocks rose over 10 percent, including PNB Housing Finance, Motilal Oswal Financial Services, SAIL, and KIOCL.

The Indian rupee on Friday closed at a six week low against the US dollar following a spike in international crude oil prices. The domestic currency ended at 71.81 per dollar, a level last seen on November 20.

On the institutional front, FPIs were net buyers in Indian markets for Rs 1,263 crore while the DIIs were net sellers to the tune of Rs 1,029 crore, provisional data showed.

Big News:

The Association of Mutual Funds in India (AMFI) shifted Info Edge (India), Adani Transmission, RECL, Kansai Nerolac and Muthoot Finance to the largecap category from midcap on January 3.

On the other hand, Cadila Healthcare, New India Assurance Company, Vodafone Idea, Indiabulls Housing Finance and Yes Bank have been moved to the midcap category.

AMFI carries out this exercise every six months between July and January, as mandated by the Securities and Exchange Board of India (SEBI). In order to ensure uniformity and clarity, the market regulator had in 2017 defined smallcaps, midcaps and largecaps.

As per the new rules, the top 100 companies, in terms of market capitalisation, will be considered as largecaps, the 101st to 250th companies will be considered as midcaps and the 251st onwards will be considered smallcaps.

Technical View:

The Nifty closed the week on a bearish note but held on to it crucial support at 12,200 levels which suggests that bulls could reclaim lost glory in case the index climbs above 12,293 levels to make a fresh record high.

The trend remains positive as long as the Nifty trades above 12,100. Investors should use dips to buy into quality stocks, suggest experts.

Overall, the trend continues to remain up and we continue to maintain our bullish stance and our target of 12,400-12,450 zone. The near term, support is placed at 12,200 zone, suggest experts.

They expect mid and small caps to outperform going ahead and metal space will continue to shine. The supports are placed at 12,200-12,100, and resistance is placed 12,300-12,400.

Stocks in news:

UCO Bank on January 4 said it has recovered Rs 800-900 crore from four large stressed accounts in the December quarter.

Shareholders of Bharti Airtel have approved proposals to raise up to $2 billion in equity and another $1 billion in debt. The proposal for issuance of securities for amount up to $2 billion received 99.99 percent votes in favour of the special resolution at the company's EGM held on January 3, a regulatory filing showed.

Public sector Indian Overseas Bank has received capital infusion of Rs 4,360 crore from the government of India, the bank said on January 4.

Tata Group firm Titan Company on Saturday said its sales in December were hit due to protests in the North East and other parts of the country. Retail sales in jewellery were better than expected at the beginning of the third quarter of FY'20, possibly due to a good wedding season

Adani Group's port developing arm Adani Ports and Special Economic Zone (APSEZ) on Friday said it will acquire 75 percent stake in Krishnapatnam Port Company (KPCL) in a cash deal that values the port at Rs 13,500 crore.

Technical Recommendations:

We spoke to Narnolia Financial Advisors and here’s what they have to recommend:

Roto Pumps | Buy | LTP: Rs 149.95 | Target: Rs 172 | Stop loss: Rs 134 | Upside: 15%

Karnataka Bank | Buy | LTP: Rs 74.20 | Target: Rs 83 | Stop loss: Rs 66 | Upside: 12%

Ashok Leyland | Buy | LTP: Rs 83.65 | Target: Rs 92 | Stop loss: Rs 73 | Upside 10%

Disclaimer: The views and investment tips expressed by investment experts on are his own and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Kshitij Anand
Kshitij Anand is the Editor Markets at Moneycontrol.