Ajit Mishra, VP - Research, Religare Broking:
Markets started the week with a cut of over half a percent amid mixed cues. Initially, the benchmark opened higher, tracking firm global cues however profit taking at the higher levels trimmed all the gains and pushed the index further lower as the day progressed.
The Nifty index eventually ended at 17,368.25 levels; down by 0.7%. The sectoral indices traded mixed wherein oil & gas, telecom and realty ended with losses.
Markets are currently dealing with mixed cues. At one end, the encouraging updates on the new COVID variant have eased some pressure however caution ahead of the US Fed meet amid the inflation woes is keeping the participants on the edge. In the current scenario, it’s prudent to restrict leveraged positions and let the markets stabilise.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services:
Equity Market opened on a strong note on the back of positive global cues. However selling emerged in the second half with Nifty falling 270 points to close near day's low at 17,368. Investors become cautious ahead of the various central bank meeting across the world including that of Bank of England, US Fed, ECB and Bank of Japan given the backdrop of inflation and Omicron virus.
Markets are consolidating on expected lines. Investors will keep an eye on various central bank meetings and take cues for fresh market direction. After the fall and recovery in the last two weeks, the market is unable to hold back at higher levels, indicating that index may remain sideways in a consolidative mode for some more time.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets failed to close above the 17500 level, we witnessed a sharp reversal and the Nifty dropped! The resistance of 17500 is crucial for the markets and we have to close above it in order to scale higher. On the flip side if 17300 breaks, we might see a deeper correction which could take the index lower to 17000.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty, with a gap up opening, attempted to cross the hurdle of 17600 on the upside. However it couldn’t sustain in the higher territory. The hourly chart shows that the index faced resistance near upper end of a rising channel.
Also, in terms of the Fibonacci retracement, 61.8% retracement of the previous fall from 18210 to 16782 acted as a crucial barrier, which attracted fresh round of selling. Thus the index failed to cross the hurdle of 17600 on a closing basis.
On the daily chart, the index has formed a Popgun pattern, which makes today’s high of 17639 a key resistance. The overall structure shows that the short term consolidation is likely to continue further before the index prepares for a larger up move. On the downside, the Nifty is expected to fill up a recent gap area, which is near 17250-17300.
Market Close
: Benchmark indices ended lower for the second consecutive day on December 13 amid selling seen in the realty, oil & gas and PSU banking names.
At close, the Sensex was down 503.25 points or 0.86% at 58,283.42, and the Nifty was down 143.00 points or 0.82% at 17,368.30. About 1840 shares have advanced, 1554 shares declined, and 158 shares are unchanged.
Bajaj Finance, Bajaj Finserv, Tata Consumer Products, Reliance Industries and M&M were among the top Nifty losers. Gainers included Tech Mahindra, Axis Bank, Maruti Suzuki, Wipro and SBI Life Insurance.
Among sectors, except Nifty IT all other sectoral indices ended in the red. The BSE midcap index was down 0.5 percent, while smallcap index was up 0.20 percent.
Nandan Terry files DRHP for IPO with SEBI
Ahmedabad based Chiripal Group’s Nandan Terry has filed draft red herring prospectus (DRHP) with market regulator Sebi to raise Rs 255 crore initial public offering.
Nandan Terry may consider raise Rs 40 crore through a pre IPO placement which would be in consultation with the appointed lead managers to the issue. If Pre-IPO round is done, it will reduce the amount from the IPO issue size.
Digital payments are witnessing strong growth: Motilal Oswal Financial Services
According to the SBI Cards and Payment Services report of Motilal Oswal Financial Services Limited (MOFSL), digital payments have grown at 69% CAGR over the past three years, led by robust traction in UPI, while other payment instruments have reported strong growth.
The mix of digital payments in the overall retail payments has thus increased, with UPI constituting 80% of digital payments (barring NEFT, RTGS, and IMPS).
With an improvement in the economic environment and ongoing recovery after the COVID19 outbreak, Credit Card spends have shown a strong 65% YoY growth during FY22 YTD (crossed the milestone of INR1t during Oct’21).
Nazara Technologies arm Nodwin Gaming acquires strategic 10% stake in Rusk Media
NODWIN Gaming, the material subsidiary of Nazara Technologies and South Asia’s leading esports company, has acquired a strategic 10% stake in the digital content IP media network Rusk Media, company said in its press release
Nazara Technologies was quoting at Rs 2,446.30, up Rs 116.45, or 5 percent on the BSE.
BSE Oil & Gas index slipped 1 percent dragged by the HPCL, Reliance Industries, Gail India
Shriram Group announces composite scheme of arrangement
Shriram Transport Finance Limited (STFC) and Shriram City Union Finance (SCUF) and their Promoter entity Shriram Capital Limited (SCL) announced that the boards of directors of STFC, SCUF & SCL, at their respective board meetings held approved the merger of SCL & SCUF with STFC.
Also approved amalgamation of Shrilekha Business Consultancy Private Limited with Shriram Capital and the demerger of Financial Services undertaking, Life Insurance Undertaking and General Insurance Undertaking of SCL and the amalgamation of SCL (with its remaining undertaking and investments) with Shriram Transport Finance.
Shriram Transport Finance Corporation was quoting at Rs 1,488.90, down Rs 13.80, or 0.92 percent.
Market at 3 PM
Benchmark indices erased some of the intraday losses but still trading lower with Nifty below 17400.
The Sensex was down 456.42 points or 0.78% at 58330.25, and the Nifty was down 130.10 points or 0.74% at 17381.20. About 1821 shares have advanced, 1398 shares declined, and 137 shares are unchanged.
Nifty PSU Bank index shed nearly 1 percent dragged by Canara Bank, Union Bank of India, Central Bank of India
Anand Rathi Wealth to list tomorrow
Anand Rathi Wealth, a leading non-bank wealth solutions firms in India, is set to debut on the bourses on December 14 after its public issue was subscribed nearly 10 times by investors.
The company’s shares were trading at a premium of Rs 50 in the grey market, as per data from IPO Watch, a day before the listing. That translates to a 10 percent premium on its issue price of Rs 530-550 per share.
The issue was open for subscription during December 2-6, and received healthy response from all categories, garnering bids for 8.29 crore equity shares against an IPO size of 84.75 lakh equity shares. Click to Read More
Arihant Capital on Orient Cement:
We believe Orient Cement Limited (OCL) is well-placed to take advantage of a revival in the cement demand in its operating regions by leveraging its planned capacity expansion, better monitoring of cost drivers, and improving financials.
At a CMP of Rs 166 stock is trading at an EV/EBIDTA multiple of 3.8(x) and 2.8(x) to its FY23E and FY24E.
We value the stock at a EV/EBIDTA of 4(x) to its FY24E and initiate coverage on Orient Cement Limited (OCL) with a buy recommendation with a target price of Rs 238/share, implying an upside of 43.7%
European markets update
Motilal Oswal on Jubilant Foodworks
: Jubilant FoodWorks is our top pick in the quick service restaurant (QSR) space, given its efficient business model, with emphasis on success in delivery (70% of sales prior to the COVID-19 outbreak). This gives it a huge advantage over peers, where lease rental and overhead costs are high. Same store sales growth (SSSG) is likely to remain robust, driven by tailwinds towards delivery-based and organized players once the pandemic ends. With the addition of technology and ‘value’ moats in recent years, the company's business has strengthened further. It has the best balance sheet and a consistently high RoCE of over 20%. With an accelerating shift from unorganized and small peers, the chain restaurants market is expected to grow by more than 19% CAGR over the next few years. The stock is expected to outperform the market.
Greenlam Industries board approves 5-for-1 stock split:
Market update at 2 PM: Sensex is down 508.80 points or 0.87% at 58277.87, and the Nifty shed 144.60 points or 0.83% at 17366.70.
Angel One records 146.2% YoY growth in its client base to 7.32 million in November 2021:
Fintech platform Angel One recorded robust growth in November 2021. The company’s client base expanded to 7.32 million, a 146.2% YoY growth, as it registered gross client acquisition of 0.45 million, a 193.0% YoY growth. Angel One has added 3.4 million clients in eight months in the current financial year.
Gaurav Garg, Head of Research, Capitalvia Global Research:
Indian Equity Benchmarks remained lower after a flat opening with both Sensex and Nifty trading in red. Domestic market impacted by negative sentiments from other Asian markets as traders edged away from riskier assets amid renewed concerns about Covid-19. Traders remained cautious ahead of key U.S inflation data which kept currencies in check.
Our research suggests that 58900 will act as an important resistance level for short term in the market. We can expect the market to trade in the range of 58300-58900.
Oil & Gas index declined nearly 1 percent dragged by Reliance Industries, HPCL, IOC
Ultraviolette raises Series C investment from TVS Motor, Zoho Corporation
Ultraviolette Automotive Pvt. Ltd. has raised a new round of capital in its Series C funding, led by TVS Motor Company. Zoho Corporation has joined this round along with TVS Motor, to support Ultraviolette’s vision of developing high performance mobility solutions for India and global markets. TVS Motor Company, which has been an early backer of the company, has led the investment in this round, company said in its release.
TVS Motor Company was quoting at Rs 677.65, down Rs 4.35, or 0.64 percent on the BSE.
Edelweiss hikes stake in Edelweiss Wealth Management to 44.16%
Diversified financial group Edelweiss on Monday said it has increased its stake in its associate company — Edelweiss Wealth Management (EWM) to 44.16 per cent.
PAG, a leading Asia-focused investment group, continues to be the majority shareholder in EWM with 55.84 per cent stake.
"As a part of the agreement outlined last year, when PAG acquired a majority stake in the business, Edelweiss had the option to increase its stake by nearly 5 per cent. Exercising that option, the group has now acquired an additional 5.28 per cent stake, taking its stake in EWM from 38.88 per cent to 44.16 per cent," it said in release.
Edelweiss Financial Services was quoting at Rs 75.15, down Rs 0.45, or 0.60 percent.
Asian stocks, currencies gain as Omicron fears abate
Emerging Asia's stocks and currencies rose on Monday, as worries over the fallout from the new coronavirus variant Omicron receded, while investors focussed on more than a dozen global central bank meetings due this week.
Shares in Malaysia, Thailand and Indonesia rose between 0.2% and 0.7%, while their respective currencies, gained 0.1% to 0.3%.
Shanghai shares jumped 1% to a three-month high after an agenda-setting meeting of China's top leaders concluding late on Friday pledged proactive fiscal policy and ensured economic stability in 2022.
South Korea's won firmed 0.3% as data showed the Asian trade bellwether's 10-day exports surged 20.4%, while the Indonesian rupiah was buoyed by the vaccine approval news.
Market at 1 PM
Benchmark indices erased all the early gains and trading at day's low with Nifty below 17400.
The Sensex was down 419.91 points or 0.71% at 58366.76, and the Nifty was down 116.50 points or 0.67% at 17394.80. About 1806 shares have advanced, 1374 shares declined, and 131 shares are unchanged.
Greenlam Industries to set up greenfield project at Andhra Pradesh
The board of directors of Greenlam South, a wholly owned subsidiary of Greenlam Industries, at their meeting held on December 13, 2021, has approved to set up a greenfield project for manufacturing of Particle Board and allied products at Naidupeta, Nellore in Andhra Pradesh.
Board also approved to enhance the capacity of the greenfield laminate project being set-up at Naidupeta, Nellore in Andhra Pradesh from 1.5 million laminate sheets/board per annum to 3.5 million laminate sheets/board per annum.
Greenlam Industries has touched a 52-week high of Rs 1,749.75 and was quoting at Rs 1,706.60, up Rs 19.20, or 1.14 percent on the BSE.
Parth Nyati, Founder, Tradingo on Tega Industries listing
Kolkata-based Tega Industries with strong management and sound fundamentals went public today. A massive response from investors triggered the IPO to be subscribed 219 times.
The IPO was purely OFS based where its PE fund is exiting, but the company is cash-rich.
Initially priced at Rs 453 each, the issue gained 66% and was listed at Rs 760.
The company might perform much better going forward if this momentum continues. New investors can wait for a dip to buy, while long-term investors should hold this stock. Those who have received the allotment should keep a stop loss of Rs 690.
Medplus Health Services IPO Updates:
The initial public offering of Medplus Health Services, the second largest pharmacy retailer in India in terms of number of stores, has garnered bids for 35.73 lakh equity shares against an IPO size of 1.25 crores, subscribing 28 percent on December 13, the first day of bidding.
Retail investors have put in bids for 56 percent of shares set aside for them, and employees have bought 9 percent of shares reserved for them.
The allotted quota of non-institutional investors was subscribed 2 percent, while qualified institutional buyers have not started putting in their bids yet.
MapmyIndia IPO subscribed 23.88 times on final day
The public issue of CE Info Systems, which runs MapmyIndia, continues to get healthy response from investors with bids for 16.82 crore equity shares against an offer size of 70.44 lakh units, subscribing 23.88 times on the final day of bidding.
Retail investors have bought shares 10.69 times the allotted quota, and the portion set aside for non-institutional investors was subscribed 78.27 times. Qualified institutional buyers have put in bids 6.17 times the reserved portion.
The Rs 1,040-crore public issue was subscribed 2.02 times on its first day of bidding, and the second day subscription was 6.16 times.
Metro Brands IPO sees 37% subscription on second day of bidding
The public offering of footwear retailer Metro Brands has been subscribed 37 percent, so far, receiving bids for 70.96 lakh equity shares against an IPO size of 1.91 crores on December 13, the second day of bidding.
Retail investors continue to provide good support to the issue, bidding for 71 percent of shares set aside for them, while the reserved portion of non-institutional investors was subscribed 4 percent.
Qualified institutional buyers portion booked 3 percent. The issue closes on December 14.
BLS International signed contract with the Embassy of India in Kuwait
BLS International signs contract with the Embassy of India in Kuwait for Consular, Passport & Visa services.
BLS International has signed a contract with the Embassy of India in Kuwait for consular, passport & visa services. The company will be starting operations with three centres in Sharq, Fahaheel and Jleb Al Shuwaikh in Kuwait
BLS International Services was quoting at Rs 214.60, up Rs 10.20, or 4.99 percent on the BSE.
Venkys setting up new project for manufacture of Veterinary Medicine Products
Venkys (India) is setting up a new project for manufacture of Veterinary Medicine Products under its Animal Health Product Segment.
The company has acquired land admeasuring 15030 Sqm at MIDC, Village: Kesurdi, Tal: Khandala, District: Satara, Maharashtra for this purpose. Construction activities will commence in December 2021 and it is expected that the project will be completed by March 2022 and commercial production will commence by June 2022, company said in its release.
Venkys was quoting at Rs 2,719.80, up Rs 126.60, or 4.88 percent on the BSE.
Market at 12 PM
Benchmark indices erased most the early gains and trading flat with Nifty around 17550.
The Sensex was up 82.08 points or 0.14% at 58868.75, and the Nifty was up 31points or 0.18% at 17542.30. About 2044 shares have advanced, 1089 shares declined, and 133 shares are unchanged.
BSE Realty index gained 1 percent supported by the Phoenix Mills, Sunteck Realty, Prestige Estate
Zydus to begin Phase II (a) clinical trial of ZYIL1
Zydus has received permission to initiate the Phase II (a) clinical study of its NLRP3 inhibitor “ZYIL1” in patients with Cryopyrin-Associated Periodic Syndrome (CAPS) in Australia. Phase II (a) clinical trial in Australia will study the safety, tolerability, pharmacokinetics and pharmacodynamics in patients with CryopyrinAssociated Periodic Syndrome (CAPS), compay said in its release.
Cadila Healthcare was quoting at Rs 469.40, up Rs 1.85, or 0.40 percent on the BSE.
Vedanta rises 3% as board approves interim dividend
Shares of mining major Vedanta gained more than 3 percent on December 13 after the company announced on December 11 that the board has approved a second dividend for FY22 for Rs 13.50 apiece, a total of Rs 5,019 crore for the company.
The record date for the payment of dividend has been set as December 18, the company said in a regulatory filing.
Ravi Singhal, Vice Chairman at GCL Securities:
Medplus Health Services IPO looks terrific; it is the second largest health services IPO in India, with good management and sales on all platforms, including online, via phone, and in retail locations.
It exhibits strong development, although it is mostly based in the south, with intense rivalry from both the unorganised and organised sectors, and the growth in the Covid era is sustainable.
Buzzing
Antony Waste Handling Cell share price spiked 10 percent on December 13 after its subsidiary, AG Enviro Infra Projects, received a letter of intent (LoI) from city - Sadar Paharganj Zone of North Delhi Municipal Corporation.
The letter of intent is for door-to-door collection and transportation (C&T) of municipal solid waste to disposal site and operation and maintenance of equipment/machineries from the Sadar Paharganj Zone of North Delhi Municipal Corporation (NDMC), the company said in an exchange filing.
"AG ENVIRO has been associated with NDMC for the last 16 years in the business of Municipal Solid Waste Management. This contract is for a period of ten years for the collection and transportation of ~ 1,000 TPD," the company said.
BSE Bankex index rose 1 percent supported by the Axis Bank, Bandhan Bank, Au Small Finance Bank
Paytm's GMV jumps 129% to Rs 1.66 trillion in October, November on higher festive spends
Payments and financial services company Paytm witnessed a 129 percent growth in Gross Merchandise Value (GMV) i.e. payments made to merchants through its platform in the months of October and November 2021, as compared to the same period last year, it said on December 13.
The company's GMV rose to Rs 1.66 lakh crore (trillion) in October and November versus Rs 72,800 crore in same period of the corresponding year, Paytm said in a stock exchange filing. This growth was led by the festive season as well as upbeat consumer sentiment, as COVID-induced restrictions were lifted and people stepped out for more purchases.
Paytm's GMV for October stood at Rs 83,200 crore, while that of November rose marginally to Rs 83,400 crore.
Market update at 11 AM: Sensex is up 227.66 points or 0.39% at 59014.33, and the Nifty added 74.70 points or 0.43% at 17586.
Medplus IPO Updates:
The initial public offering of Medplus Health Services, the second largest pharmacy retailer in India in terms of number of stores, has garnered bids for 10.24 lakh equity shares against an IPO size of 1.25 crores, subscribing 8 percent on December 13, the first day of bidding.
The company plans to mop up Rs 1,398.29 crore through its public issue, of which Rs 418 crore was raised from anchor investors on December 10. The offer comprises fresh issuance of shares worth Rs 600 crore and an offer-for-sale of Rs 798.29 crore by selling shareholders.
Retail investors have put in bids for 16 percent of shares set aside for them, and employees have bought 1 percent of shares reserved for them.
Metro Brands IPO sees 31% subscription on second day of bidding:
The public offering of footwear retailer Metro Brands has been subscribed 31 percent, so far, receiving bids for 59.37 lakh equity shares against an IPO size of 1.91 crores on December 13, the second day of bidding.
Retail investors continue to provide good support to the issue, bidding for 61 percent of shares set aside for them, while the reserved portion of non-institutional investors was subscribed 3 percent.
Qualified institutional buyers are yet to put in their bids for the offer that closes on December 14.
Gaurav Garg, Head of Research, Capitalvia Global Research
The Indian benchmarks made a gap up opening amid positive cues from global markets. Sentiments will get boost with Index of Industrial Production (IIP) data as the manufacturing sectors grew 2 percent in October. India’s Industrial production also rose by 3.2 percent as per government data.
Market participants will be eyeing on inflation data for gauging economy activities. Some cautiousness will come as FPIs were net sellers in the Indian markets in December.
RBI data showed India’s foreign exchange reserves datelined for the second consecutive week for the December month. The level of 17800 may act as resistance levels in the market. We can expect the market to maintain their gaining momentum and to trade in the range of 17500-17800.
MapmyIndia IPO subscribed 7 times on final day
The public issue of CE Info Systems, which runs MapmyIndia, continues to get healthy response from investors with bids for 4.99 crore equity shares against an offer size of 70.44 lakh units, subscribing 7.09 times on the final day of bidding.
Retail investors have bought shares 8.36 times the allotted quota, and the portion set aside for non-institutional investors was subscribed 7.77 times. Qualified institutional buyers have put in bids 4.37 times the reserved portion.
Santosh Meena, Head of Research, Swastika Investmart:
Tega industries is debuting the secondary market on expected line as the grey market was indicating a listing gain of 65-70%.
The fundamentals of the company are very sound and the outlook for the industry is also bullish therefore long-term investors should hold this company into their portfolio while those who applied for listing gain can keep a stop loss at RS 690.
