Ajit Mishra, VP - Technical Research, Religare Broking
Markets started the week on a volatile note and ended almost unchanged, in continuation to the prevailing corrective phase. After the gap-down start, the Nifty index oscillated sharply on both sides and finally settled at 18497.15 levels. Meanwhile, a mixed trend on the sectoral front kept the traders busy wherein buoyancy in the banking capped the downside. Besides, recovery in the broader indices further eased the pressure.
Markets are currently dancing to the global tunes and we expect the same trend to continue, in absence of any major domestic event. Traders should focus on sectors that are showing resilience viz. banking, FMCG and metal for the long trades while the IT and pharma may continue to trade subdued. At the same time, managing risk is also critical citing the upcoming event and data.
Shrikant chouhan, Head of Equity Research (Retail), Kotak Securities
After retreating sharply in early trades, both benchmark indices recouped most of their losses but traded range-bound in a listlesss trading for almost entire trading session, as investors mostly stayed on the sidelines ahead of the inflation data and the US Fed meeting later this week.
More clarity will emerge post the US Fed meeting, which would determine the trend in the near term.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty stepped into a short term consolidation phase in the last week. As a result, it opened gap down on December 12. On the downside, the bulls moved in to offer support as the index inched towards the short term support of 18300, which is 78.6% retracement of the recent up move.
On the other hand, recovery for the day was restricted near 18500. Overall structure shows that the Nifty can have a short term consolidation in the range of 18300-18650. The Bank Nifty, on the flip side, is maintaining its positive trajectory.
Vinod Nair, Head of Research at Geojit Financial
A tepid start-off in the domestic market was flattened due to a recovery in banking, metals, and oil & gas, while continued selling in IT stocks weighed on the indices.
Key inflation numbers are expected to soften from the previous month, owing to a moderation in food prices. Extending the stock market route, the global markets remained fragile as rate decisions by major central banks took centre stage.
Rupee Close:
Indian rupee closed 27 paise lower at 82.54 per dollar on Monday against Friday's close of 82.27.
Market Close
: Indian benchmark indices ended marginally lower in the volatile session on December 12.
At Close, the Sensex was down 51.10 points or 0.08% at 62,130.57, and the Nifty was up 0.60 points at 18,497.20. About 1787 shares have advanced, 1688 shares declined, and 194 shares are unchanged.
Asian Paints, Infosys, Eicher Motors, Titan Company and Kotak Mahindra Bank were among the top Nifty losers, while gainers were BPCL, Divis Laboratories, Coal India, Apollo Hospitals and UPL.
Among sectors, Information Technology index down 0.5 percent, while PSU bank and oil & gas indices up 1 percent each.
BSE midcap and smallcap indices ended marginally higher.
Morgan Stanley downgrade Aditya Birla Capital to equal-weight from overweight
-Downgrade to equal-weight from overweight, target at Rs 160 per share
-Taking a breather after strong recent run up
-Profitability across businesses has been improving & gaining investor recognition
-See scope for further medium-term re-rating
Aditya Birla Capital was quoting at Rs 157, up Rs 1.15, or 0.74 percent on the BSE.
Dalmia Cement (Bharat) Limited (DCBL), wholly owned subsidiary of Dalmia Bharat Limited has today entered into a binding Framework Agreement for the acquisition of the Cement, Clinker and Power Plants from Jaiprakash Associates Limited and its associate having total cement capacity of 9.4 MnT (along with Clinker capacity of 6.7MnT and Thermal Power plants of 280MW). The said plants are situated at Madhya Pradesh, Uttar Pradesh, and Chhattisgarh.
Prabhudas Lilladher on OMCs:
Upgrading all three oil marketing companies (OMCs) to ‘BUY’ due to sharp correction in crude oil prices and turnaround in diesel marketing profitability
Crude oil prices have corrected to ~USD76/bbl, down ~40% from Jun-22 highs of USD125/bbl post Russia-Ukraine war
Increase our FY24/25E marketing margins on diesel & petrol to Rs3.5/4.0 (Rs2.0/3.5 earlier), reduce operating expense (due to likely lower LNG prices) and increase earnings by 50-130%
Among OMCs, HPCL is our preferred pick, as its marketing share is double of refining
Jefferies maintains 'Buy' rating on IndusInd Bank; target raised to Rs 1,600
-Buy rating, target raised to Rs 1,600 per share
-Ready for next leg of re-rating
-Expect loan growth to improve to over 20% from FY24
-RoA should move towards 2%, raise earnings estimates by 3-5%
-Valuations attractive at current levels
-Approval for extension to CEO tenure will be a key catalyst
Cupid has received a purchase order from United Nations Population Fund (UNFPA) for supply of Water Based Lubricant worth Rs 5.75 crore.
Sula Vineyards IPO subscribed 16% on day one as retail portion booked 30%
The initial public offering of Sula Vineyards, the leading wine producer in India, has garnered bids for 30.33 lakh equity shares against IPO size of 1.88 crore shares, getting subscribed 16 percent on December 12, the first day of bidding.
Retail investors and high networth individuals turned active on the first day itself, buying 30 and 6 percent of their quotas respectively.
But qualified institutional buyers are yet to put in their bids for the offer. They already have invested Rs 288.10 crore in the company via the anchor book.
Market at 3 PM
Sensex was down 122.13 points or 0.20% at 62059.54, and the Nifty was down 24 points or 0.13% at 18472.60. About 1597 shares have advanced, 1736 shares declined, and 155 shares are unchanged.
Nomura keeps Buy on Honeywell Automation, target raised to Rs 50,642 per share
-Buy call, target raised to Rs 50,642 per share
-Preferred pick on India digitalisation
-Execution & margin to pick up as services/exports recover
-Expect a turnaround in H2FY23 continuing into FY24
-Valuations reasonable against peers
Kirloskar Brothers | Share holders reject proposal to appoint independent auditor to investigate expenses
HCL Tech expands partnership with Mondelēz International
HCL Technologies announced an expanded multi-year contract with Mondelēz International, to enhance Mondelēz International’s cybersecurity and transform digital workplace services globally.
RBI sells $33.42 billion in April-September FY23 to curb rupee volatility
The Reserve Bank of India (RBI) net sold USD 33.42 billion in the foreign exchange market in the first six months of current fiscal to defend the rupee from excessive volatility. The central bank closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
"During the financial year, the RBI's operations have resulted in net sales of USD 33.42 billion till September 2022 (settlement basis)," Finance Minister Nirmala Sitharaman said in a reply to the Lok Sabha.
European Markets Updates
Reliance Infra in focus
Supreme Court gives deadline of December 14 to Centrefor payment clarity of Rs 4,500 crore to Reliance Infra. The top court refuses to allow additional four weeks to Delhi Metro for Reliance Infra payment:
Market update at 2 PM
Sensex is down 159.59 points or 0.26 percent at 62,022.08, and the Nifty shed 38.10 points or 0.21 percentat 18,458.50.
CARE Rating revised the ratings of Ahluwalia Contracts India
Daily Voice | Varun Lohchab of HDFC Securities sees midcap, smallcap opportunities in five sunrise sectors
Some of these stocks have all that an investor can ask for, viz., capital efficiency, visibility of earnings growth, and moderate leverage.... Read More
Escorts Kubota appoints Harish Lalchandani as Chief Commercial Officer for domestic tractor business
Harish Lalchandani has been appointed as the Chief Commercial Officer to head the domestic tractor business for Agri Machinery with effect from December 12, 2022.
Escorts Kubota was quoting at Rs 2,272.60, down Rs 10.95, or 0.48 percent on the BSE.
NDTV invites RRPR Holding to nominate 2 directors on NDTV board
The Board of Directors of New Delhi Television Limited (NDTV), at its meeting held on December 9, has approved a proposal to invite RRPR Holding Private Limited, an indirect subsidiary of Adani Enterprises Limited, holding 29.18% equity share capital of NDTV, to nominate two directors to the Board.
The appointment shall be considered in the next meeting of board of directors, scheduled to be held on December 23, 2022.
ISMT to sell 40 MW captive power plant to Omsairam Steels & Alloys
ISMT has entered into a business transfer agreement (BTA) , for sale of the 40 MW Captive Power Plant of the company on a slump sale basis to Omsairam Steels and Alloys.
The BTA is expected to completed by February 26, 2023.
Nifty Metal index rose 0.4 percent supported by Jindal Stainless Welspun Corp, Jidnal Steel & Power
ONGC to invest Rs 2,150 crore on drilling 53 exploratory wells in Andhra Pradesh
Oil and Natural Gas Corporation Ltd proposes to drill 53 exploratory wells in Andhra Pradesh- 50 in Godavari on-Land PML (Petroleum Mining Lease) Block of KG Basin and three in CD-ONHP-2020/1 (OALP-Vi) Block Of Cuddapah basin with an investment outlay of Rs 2,150 crore.
Andhra Pradesh State-Level Environment Impact Assessment Authority (SEIAA) in a meeting held last month cleared two separate proposals put up by the ONGC for environmental clearance.
JUST IN | Microsoft to buy nearly 4% stake in London Stock Exchange Group, reported CNBC-TV18
Market at 1 PM
The Sensex was down 52.16 points or 0.08% at 62129.51, and the Nifty was down 5.30 points or 0.03% at 18491.30. About 1664 shares have advanced, 1606 shares declined, and 170 shares are unchanged.
Kalpataru Power Transmission raises Rs 99 crore via NCDs
Kalpataru Power Transmission has raised Rs 99 crore by allotment of 990 NCDs of the face value of Rs 10 lakh each on private placement basis. The said NCDs will be listed on wholesale debt market segment of BSE.
ICICI Direct assigns subscribe rating on Sula Vineyards IPO
Post pandemic, Sula has shown strong growth on the profitability front from FY22 onwards, which the management expects to stay range bound (due to higher premiumisation and own brands sales).
The stock is a pure play on the wine sector, which currently sits on a low base (less than 1% of alcobev industry) but is expected to surpass industry growth due to higher acceptability, affordability, perceived health benefits, etc.
Broking house assign a rating of SUBSCRIBE with a long term horizon to the IPO as the industry is currently in a nascent stage and demand centres remain concentrated mainly in a few metros.
Markets speculations are rife that Dalmia Bharat’s subsidiary Dalmia Cement is likely to acquire assets of Jaypee Group
The rumours gathered traction after the company reported of an important event likely after the company’s board meeting on December 12, as the exchange’s regulation for prevention of insider trading.
Sula Vineyards IPO subscribed 10% on day one as retail portion booked 19%
The initial public offering of Sula Vineyards, the leading wine producer in India, has garnered bids for 19.23 lakh equity shares against IPO size of 1.88 crore shares, getting subscribed 10 percent on December 12, the first day of bidding.
Retail investors and high networth individuals turned active on the first day itself, buying 18 and 3 percent of their quotas respectively.
But qualified institutional buyers are yet to put in their bids for the offer. They already have invested Rs 288.10 crore in the company via the anchor book.
Intellect Design partners with InsureMO
IntellectAI, a Suite of Artificial Intelligence products from Intellect Design Arena, and InsureMO , an insurance middle office provider for the global insurance industry, today announced a strategic partnership designed to offer a complete underwriting solution for Commercial lines carriers and MGAs looking to replace their existing policy admin system or accelerate their digital transformation by implementing automated underwriting with integrated policy admin services.
PSP Projects received work orders worth Rs 115.49 crore:
PSP Projects received work orders worth Rs 115.49 crores (excluding GST) in Institutional and Industrial categories.
With receipt of the above orders, the total order inflow for the financial year 2022-23 till date amounts to Rs 1,948.58 crore.
Investor network FAAD gets Sebi nod to launch Rs 300 crore fund
Early-stage investor network FAAD on Monday said it has received Sebi's approval to launch a Rs 300 crore alternative investment fund (AIF).
The network will build the war chest in the coming months to invest across sectors in early-stage startups with special focus on healthtech, agritech, deep tech, and cleantech space, FAAD said in a statement.
Mactotech Developers approves closure of the QIB, fix issue price at Rs 1026
MPS Committee of the board of directors of Mactotech Developers on December 12, 2022 has approved the closure of the QIB offer period for the offer today i.e. December 12, 2022 and also approved the offer price of Rs 1026 per equity share i.e. Rs 3.25 above the floor price of Rs 1022.75 per equity share to be transferred to the eligible qualified institutional buyers in the offer.
Spandana Sphoorty board to consider issue of NCDs on December 14
A meeting of the management committee of the board of directors of Spandana Sphoorty Financial is scheduled to be held on December 14, 2022, to consider and approve, the issue and offer of non-convertible debentures on a private placement basis.
Motilal Oswal reiterates 'Buy' rating on Bharat Forge, target Rs 985
-Reiterate Buy rating, with a Target Price of Rs 985
-Estimate a consolidated revenue/EBITDA/PAT CAGR of 14%/20%/24%, respectively, over FY22-25E.
-While its core business is seeing cyclical recovery, underlying macro- environment in US/EU is weakening.
Ravindra Rao, CMT, EPAT VP-Head Commodity Research, Kotak Securities
COMEX gold traded mixed in the previous week ending pretty much flat above $1800. On the macro front the ISM services PMI and factory orders came in better-than-expected supporting US dollar index recovery earlier in the previous week. While the US annual Producer price index (PPI) data showed some softening of inflation when compared to the previous figures, it was mildly higher than the forecast.
The extent of the improvement in inflation is not enough for the Fed to become dovish. However, as the economist believes that CPI is the better measure of inflation, next week’s US CPI data will be an important market mover as a softer print might support the belief that inflation is actually moderating.
Immediately following the US CPI data, the Federal Open Market Committee (FOMC) will conclude its two days meeting, the last for the year. On the price front COMEX Gold is still holding the double top resistance at $1825/oz. A sustained break above $1825/oz on closing might push the price further higher Support near $1778/oz below which we can conclude a temporary top near $1825.
Market at 12 PM
The Sensex was down 39.43 points or 0.06% at 62,142.24, and the Nifty was down 2.80 points or 0.02% at 18,493.80. About 1686 shares have advanced, 1536 shares declined, and 173 shares are unchanged.
Union Bank Hikes Lending Rate By 5 bps Across Loan Tenures, reported CNBC-TV18.
Union Bank of India was quoting at Rs 85.10, up Rs 1.45, or 1.73 percent.
Zodiac Energy gets order worth Rs 18.91 crore:
Zodiac Energy has been awarded an order for Designing, Supplying, Installing, Testing, and Commissioning of Grid Tied 3 MWp Ground Mounted Solar System at various utilities of Ahmedabad Municipal Corporation along with SCADA System including 5 Years Comprehensive O and M from Ahmedabad Municipal Corporation at the aggregate cost of Rs 18.91 crore.
Zodiac Energy was quoting at Rs 129.85, up Rs 2.80, or 2.20 percent on the BSE.
Shares of Jaiprakash Assocites and Jaiprakash Power Ventures gain ahead of Board meetings
A meeting of the board of directors of Jaipraksh Assocites has been convened on Monday, December 12, 2022 at a shorter notice, to apprise the board of the recommendations of the audit committee and the progress on the various divestment initiatives of the company.
Also, a meeting of the board of directors of Jaiprakash Power Ventures has been convened on December 12, 2022, to consider the proposal of divestment of Jaypee Nigrie Cement Grinding Unit.
Rail Vikas Nigam Limited forms joint centure with Kyrgyzindustry- OJSC
Rail Vikas Nigam Limited (RVNL) has formed a Joint Venture Company with Kyrgyzindustry- OJSC for construction of Rail road and other infrastructure projects in Kyrgyz Republic.
BSE Oil & Gas index rose 0.5 percent led by HPCL, IOC, Gail India
Control Print to form JV with V Shapes SRL
Control Print has executed joint venture agreement with V Shapes SRL to form new joint venture company in India.
The JV will carry business of contract filling and packaging services, sale and marketing of the packaging machines & packaging materials etc.
Control Print was quoting at Rs 429.80, up Rs 11.25, or 2.69 percent.
Hang Seng Tech Index sinks ahead of US Fed meet
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Yes Bank hits new 52-week high
Private sector lender Yes Bank on December 9 said it has received two letters from the Reserve Bank of India pertaining to its deals with CA Basque Investments and Verventa Holdings Limited.The bank plans to engage with the investors to complete its fund raising. “Pursuant to this, the bank shall now engage with the investors for the completion of the proposed capital raise, subject to various regulatory compliances and conditions precedent as per the respective investment agreements,” Yes Bank had said.