Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS:
For the past one week, Nifty has been consolidating between the 13400-13600 band. Today, the index has slipped below the midpoint of this band, primarily weighted by weakness among banking, FMCG, and energy stocks.
Most of the sectoral indices are showing signs of fatigue following strong price gains over the past several weeks. While the overall trajectory continues to be bullish, a minor, short-term correction seems overdue before the next up-leg commences.
For the next 4-5 sessions, 13400 is an important support to keep an eye on. If this support level breaks, we could see a much needed correction in the index towards 13000-12900 zone.
Ajit Mishra, VP - Research, Religare Broking:
Markets ended almost unchanged in a volatile trading session, in continuation to prevailing consolidation bias. The benchmark opened in the red and inched further lower in early trades however recovery in global indices towards the latter half of the session helped the Nifty to settle on a flat note around 13,568 levels. Amongst the sectors, a mixed trend was witnessed as FMCG, Oil & Gas and IT ended with losses whereas Consumer Durables and Auto ended with gains. The broader indices also traded subdued wherein the midcap index managed to end marginally higher with gains of 0.4% while smallcap ended flat.
We’re seeing consolidation in the index on the expected lines but the bias is still on the positive side. A decisive break above 13,600 in Nifty could further fuel the rally however on the flip side, the breakdown below 13,400 may induce the participants to reduce positions. Meanwhile, we reiterate our view to focus more on the selection of stocks and limiting leveraged positions. Also, keep a close eye on global markets for cues.
Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking:
Sustained portfolio inflows, visible progress on the vaccine roll-out globally and weakness in greenback are the drivers which are pushing the rupee on the upwards trajectory. Value erosion in dollar and excessive liquidity is driving FIIs to load up on emerging markets equities, specially Indian equities in a big way, pushing them to a record high. We are also witnessing a strong recovery in demand in the economy, which is leading to strength in the rupee as the year draws to a close.
The local unit looks to march further on the higher side towards 73.20-73 mark, from where we might see some retracement. Markets would now be looking forward to further guidance from the US Fed in its last policy meeting of the year, which will further steer the rupee.
Vinod Nair, Head of Research at Geojit Financial Services:
Indian market opened with a negative trend following the weak sentiments of the Asian market, but a strong recovery happened as European market opened positively ahead of policy meetings. The liquidity-driven rally, which has been heavily depending on foreign funds, will bet a lot on the ongoing FOMC policy meeting and a final decision will be announced tomorrow, and the US stimulus package to be finalized this week. The outcome of these events are expected to be positive, triggering further positively in the market.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The Index once again went to test the lower end of the current range of 13400-13700 and bounced back to close above 13500. We have spent quite a bit of time within this range and a decisive move can be expected only post a break of 13400 or a conquer of 13700. Until then any dip can be utilised to accumulate long positions but it must be with strict stop loss limits.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index showed a strong recovery from day low and managed to close a day on positive note with minimal gains and formed a doji candle for fourth consecutive session hinting uncertainty. Index has formed a good base near 13500 zone and holding above said levels we may see index to march towards its immediate resistance zone of 13600 and if managed to sustain above 13600 then we may see quick move towards 13700 zone. Nifty bank close a day at 30683 and formed a dragonfly doji candle pattern on daily chart, support for Nifty Bank is coming near 30500-30350 zone and resistance is coming near 30850-31000 zone.
Rupee Close
Indian rupeeendedlower at 73.64per dollar, amid volatile trade seen in the domestic equity market.It opened lower at 73.64 per dollar on Tuesday against previous close of 73.57 and remained in the range of 73.59-73.67.
Market Close
: Benchmark indices recovered from the lows and ended flat in the highly volatile session on December 15.
At clsoe, the Sensex was up 9.71 points or 0.02% at 46,263.17, and the Nifty was up 9.70 points or 0.07% at 13,567.90. About 1389 shares have advanced, 1333 shares declined, and 128 shares are unchanged.
Nestle, HUL, BPCL, Axis Bank and ICICI Bank were among major losers on the Nifty, while gainers were Bajaj Finance, Bajaj Finserv, Eicher Motors, Shree Cements and JSW Steel.
Except auto and metal other sectoral indices ended in the red with Nifty PSU and FMCG indices fell 1 percent each.
BPCL board meeting on Dec 17:
BPCL on December 17 would consider a proposal for acquisition of 36.62% of equity shares in Bharat Oman Refineries from OQ S.A.O.C. and to consider merger of Bharat Gas Resources with BPCL.
Bharti Airtel launches customer advisory board:
Airtel Business, the B2B unit of Bharti Airtel announced the launch of its Customer Advisory Board with the objective of making its customers equal stakeholders in its product development journey. The board will have representation from Airtel's top enterprisecustomers cutting across a diverse set of industries/sectors
Cyient signs MoU with Decipher
Cyient signed an MoU with Decipher, a Perth-based company that provides a cloud monitoring and governance platform for tailing storage facilities. As per the MoU, Cyient will support Decipher with the global rollout of their cloud mining platform for tailings and
rehabilitation monitoring.
Abhishek Bansal, Founder Chairman, Abans Group
Natural Gas prices are currently trading near the $2.66 level, and a cooler weather forecast is supporting the prices. The Commodity Weather Group has said that most of the US will see cooler-than-normal temperatures this week. This is likely to boost heating demand.Meanwhile, data agency, Maxar, on last Friday, has said that milder weather is expected to return between December 21-25.
Natural Gas January expiry contract is likely to find support near $2.43-$2.26 levels. Natural Gas may continue its negative trend, while remaining below the critical resistance level of $2.72-$2.80.
Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities:
Gold traded positive at 49300 taking support at 48900 on back of hopes from the announcement from the US on stimulus package which will keep the dollar under pressure and increase demand for safe heavens.
Yash Gupta Equity Research Associate, Angel Broking:
Snowman Logistics stock down by 3.6% as Adani Logistics continues to sell holdings in Snowman Logistics. As per the bulk deal data, on Monday AdaniLogistics sold another 0.75% of their holding (12.45 Lakhs shares) in Snowman Logistics. Adani Logistics aggressively sold their stake in the company, they have already sold 6.83% of equity of Snowman in November and December month. As per the latest shareholding data Adani logistic holds 26% of equity holding of Snowman Logistic. We expect some more selling pressure to come to snowman logistic stock.
Stay-at-home accelerates recovery for home textile exporters: CRISIL
Higher in-home consumption due to increased stay-at-home period and a sharper focus on health and hygiene amid the pandemic are helping Indian home textile exporters weave their way out of the downturn faster than other textiles segments. Revenue de-growth for home textile exporters will be limited to 10-12% this fiscal compared with 30-35% for the overall textile sector, indicates a CRISIL analysis of 50 companies that account for over 60% of India’s home textile exports.
Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities:
Rupee traded weak as dollar index takes support near 90.50 giving USDINR pair some support near 73.50 zones. Given the stability and range of higher crude prices net importing kept the rupee rise at check at 73.50.
Rupee Updates
Indian rupee is trading lower at 73.65 per dollar, amid volatile trade seen in the domestic equity market. It opened lower at 73.64 per dollar on Tuesday against previous close of 73.57.
Way2Wealth on Mrs. Bectors Food Specialities IPO:
At the offer price band of Rs 286-288 the company is commanding a PE of ~54x at EPS of Rs5.31/- for FY20 and at MCAP/sales of ~2.2 on its FY20 annualised financials. Company’s sales grew at a 12% CAGR over FY17-19 while Parle and Britannia grew at 6.5% & 10% CAGR over same period.
We believe company is on strong growth wave led by its premium products offerings, leading player in biscuit export market and increasing market share in north India with focus on expanding in India and globally and thus we advise investors with a long-term investment horizon to SUBSCRIBE to the issue.
S&P betters India growth forecast
S&P Global Ratings on Tuesday raised India's growth projection for the current fiscal to (-) 7.7 percent from (-) 9 percent estimated earlier on rising demand and falling COVID infection rates.
"Rising demand and falling infection rates have tempered our expectation of COVID's hit on the Indian economy. S&P Global Ratings has revised real GDP growth to negative 7.7 percent for the year ending March 2021, from negative 9 percent previously," S&P said in a statement.
Market Updates
Benchmark indices erased all the losses and trading higher with Nifty near to 13600.
At 14:22 IST, the Sensex was up 78.03 points or 0.17% at 46331.49, and the Nifty was up 24.70 points or 0.18% at 13582.90. About 1385 shares have advanced, 1297 shares declined, and 119 shares are unchanged.
NMDC fixes price of iron ore:
The company has fixed prices of Lump Ore (65.5%, 6-40mm) at Rs 5,200 per ton and fines (64%, -10 mm) at Rs 4,610 per ton w.e.f. December 15, 2020.
Sensex gainers & losers
Yash Gupta Equity Research Associate, Angel Broking
IRCTC stock fell 2 percent amid ongoing OFS. On the first day of OFS, it got oversubscribed by 1.98 times from the non-retail category.
Promoter fixed floor price of Rs 1,367. Now the company has fixed the cutoff rate of Rs 1,377.55 after the first day of bidding.
Total OFS is 20 percent of paid-up equity share capital. Pre-OFS Promoter shareholding is 87.4 percent and post-OFS it will come down to 67.4 percent, by this very significant supply will come on the day of allotment of OFS share to investors.
We expect IRCTC stock to come down after the allotment of shares of OFS i.e. December 16, 2020.
Market update:
Even as the market traded in the lower terrain, more than 240 stocks, including Kotak Mahindra Bank, Majesco, Havells, Bajaj Finance, Adani Ports, ABB Power Products, Titan, Intellect Design Arena and Suven Life Sciences, hit their 52-week highs on BSE.
On the other hand, nearly 350 stocks, including Intellect Design Arena and Suven Life Sciences, Cybertech Systems & Software, Burger King India and Alchemist, hit their upper circuits on BSE.
NMDC buyback
The company proposed to buy-back not exceeding 13,12,43,809 fully paid up equity shares of face value Re 1 each of NMDC at a price of Rs 105 per equity share for an aggregate consideration not exceeding of Rs 1378,05,99,945 through the tender offer.
The date of opening of the buy-back offer is December 17, 2020 and the date of closing of the buy-back offer is December 31, 2020.
Adani Ports JV raises $300 mn
Adani Ports and Special Economic Zone share price gained 2 percent on December 15 after the company said its joint venture would raise $300 million.
Adani International Container Terminal Private Limited (AICTPL), a 50:50 joint venture of Adani Ports and Terminal Investment Limited Holding S.A., priced an offering of $300 million 3 percent Senior Secured Notes due 2031, the company said in the release.
The notes are expected to be rated “Baa3” by Moody’s Investors Service Inc, “BBB-” Standard & Poor’s Ratings Services and “BBB-” by Fitch Ratings Inc.
AICTPL intends to use the proceeds from the offering, upon receipt of requisite approvals, to repay all of its existing senior indebtedness and to repay a portion of the subordinated shareholder loans availed by it, the company added.
Nish Bhatt, Founder & CEO, Millwood Kane International
The headline retail inflation number has cooled off to a 3-month low primarily due to the fall in inflation for food, vegetables, and cereals. The high base also helped put up a lower number.
But the core inflation remains high at 5.8%, the retail inflation has remained above the RBI mandated level of 6% for more than 10 months in the past 1 year. Addressing the supply side constraint is key to contain high CPI.
We need inflation, more especially food and vegetable prices to soften to see a durable fall in CPI inflation. December CPI data reading will be the last before the government unveils its budget and the MPC announces its next monetary policy in February next year.
Market Updates
Benchmark indices have recovered from the day's low point but still trading in the red with Nifty around 13500.
At 12:39 IST, the Sensex was down 189.90 points or 0.41% at 46063.56, and the Nifty was down 51.20 points or 0.38% at 13507. About 1184 shares have advanced, 1416 shares declined, and 115 shares are unchanged.
Rajiv Mehta, Lead Analyst – Institutional Equities, YES Securities:
2020 has s been a roller coaster year for financial stocks. The year started off with investors’ optimism on growth and asset quality, these expectations got punctured by Covid which induced unprecedented fear and panic, and towards the end saw such concerns dissipating. The likes of HDFC Bank, Kotak Mahindra Bank, ICICI Bank, HDFC, Bajaj twins and Cholamandalam Finance have led the recovery in financial sector stocks. The second rung banks and NBFCs/HFCs are still trading significantly below their pre-Covid prices with lingering uncertainty on asset quality outcomes
Sustained economic recovery, improving income scenario for salaried and business class, instrumental liquidity interventions by RBI and Government, and a low interest rate represents a conducive business backdrop for lenders. Consequently, the rally and recovery in stock prices should continue in 2021.
However, in the first half of the year it may remain dominated by the above-mentioned strong lenders and then followed by a steep catch-up of mid and small sized financial companies who can demonstrate asset quality resilience to Covid. In our coverage, we believe HDFC Bank, ICICI Bank, RBL Bank, Mahindra Finance, Repco Home and Spandana could be strong performers of 2021.
Kalpataru Power bags orders
Kalpataru Power Transmission secured new orders / notification of award of about Rs 1,300 crores. It incuded orders from India and overseas market in the T&D business, EPC orders for pipeline laying and associated works in India and order for railway electrification by Central Organization for Railway Electrification (CORE). Also, its international subsidiary has secured new T&D projects in Europe.
BSE Realty Index shed 1 percent dragged by the Prestige Estate, DLF, Sunteck Realty:
Gold Updates
Gold prices inched higher on Tuesday as the dollar weakened, though the start of COVID-19 vaccinations in the United States and Canada buoyed hopes of a swifter global economic recovery and kept the metal's gains in check.
Rupee Updates
Indian rupee is trading lower at 73.67 per dollar, amid selling seen in the domestic equity market.It opened lower at 73.64 per dollar on Tuesday against previous close of 73.57.
Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research:
The decline in the CPI inflation print in Nov 2020 to 6.93% from 7.61% in Oct 2020 has definitely come as a relief to the bond markets. The food inflation has expectedly dropped to 8.76% on a YoY basis from 10.2% in Oct with a cooling down in the prices of both vegetables and animal protein items. This indicates that the supply challenges have eased somewhat and with a higher base for Dec 2020, the CPI print is expected to come down further next month.
Nevertheless, in our opinion, the risks of CPI continuing to be above the MPC comfort level of 6.0% continue to be high due to increased retail fuel prices, the steady increases in prices of other key commodities and a significant growth in currency with the public which has risen 23.1% on a YoY basis. We will remain cautious on the inflation trajectory over the next 1-2 quarters.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
CPI inflation for November came at 6.93 percent, particularly the dip in food inflation, which came as a pleasant surprise.
This is a big relief for the bond market too. Markets, driven by liquidity (FII investment in December has crossed Rs 30,000 crore) are ignoring all negative news like a spike in infections in the US and increasing lockdowns in parts of Europe.
In India positive news regarding COVID continues. Remain invested in high-quality large-caps and continue with SIPs. Also, some profit-booking may be considered.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
Nifty is at the midpoint of the resistance patch which is between 13,400 and 13,700.
We have been in this range for over a week now as this is a decisive point for the index and can pose a threat to the upward direction of the market, should there be a U turn from the current juncture.
The breaking of 13,300-13,400 could be a dicey situation to be in.
Majesco:
Shares of Majesco jumped 5 percent to hit an all-time high of Rs 1,019 in morning trade on December 15 after it informed exchanges that its board had approved the payment of interim dividend at Rs 974 per share.
"The board of directors at its meeting held on December 15, 2020, has approved payment of interim dividend at the rate of 19,480 percent i.e. Rs 974 per equity share of the face value of Rs 5 each for the financial year 2020-21," the company said in a BSE filing.
The interim dividend payout will be for an amount of Rs 2,788.4 crore on a shareholder base of 2,85,77,939 shares.
Sharekhan on Indian Oil Corporation
:
IOCL is the mostattractively valued stock among oil marketing companies (OMCs) with valuation of 0.8xits FY2023E P/BV and 5.3x its FY2023E EPS despite strong earnings visibility (expect 20%PAT CAGR over FY2020-FY2023E) and healthy RoE of 15.5%. Hence, we expect IOCL’ssteep valuation discount of 57% to that of BPCL on FY2023E EPS to narrow down givenstrong growth outlook and high dividend yield of 8-9%, said Sharekhan.
Potential monetisation of non-coreassets (IOCL has pipeline network of 14,600 kms with capacity of 94.4mtpa for crude and21.7mmscmd for gas) would help in value unlocking and privatisation of BPCL is expectedto re-rate the refining and marketing business of entire OMC pack. Hence, we maintain buyrating on IOCL with an unchanged price traget of Rs115, it added.
Dilip Buildcon gets LoA
The company has received the letter of acceptance (LoA) from the National Highways Authority of India for Hybrid Annuity mode project in the state of Gujarat.
Burger King shares jump 18%
After a stellar listing, Burger King India shares continued to gain momentum on the second day of listing with share price rising over 18 percent in the early trade on December 15.
The company had a strong listing premium of 92.25 percent on the first day of trade on December 14.
The stock opened at Rs 115.35, against issue price of Rs 60 on the BSE, while on the National Stock Exchange, shares made a debut at Rs 112.50, a 87.50 percent premium over IPO price.
Nifty FMCG index fell 1 percent dragged by the ITC, Marico, HUL
KNR Constructions rises 7%
KNR Constructions share price added over 7 percent on December 15 as the company plans to issue bonus shares.A meeting of the board of directors of the company is scheduled to be held on December 18, 2020 to consider declaration of Bonus Shares and other related issues.
Rupee Opens
Indian rupee opened lower at 73.64 per dollar on Tuesday against previous close of 73.57, amid selling seen in the domestic equity market.
On December 14, rupee ended 8 paise higher at 73.57 per dollar against Friday's close of 73.65.
Sensex, Nifty in red
Benchmark indices extended the early losses with Nifty around 13500.
At 10:02 IST, the Sensex was down 213.17 points or 0.46% at 46040.29, and the Nifty was down 57.50 points or 0.42% at 13500.70. About 947 shares have advanced, 1321 shares declined, and 101 shares are unchanged.
Nifty PSU Bank index shed 2 percent dragged by the Canara Bank, Indian Bank, IOB
Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services:
The Nov CPI came in at 6.93% compared to 7.61% in Oct. The abatement in the surging India’s inflation data is mainly due to some moderation in food prices. But the broad based sequential rise in petrol prices will keep the inflation data above the RBI’s upper band of 6% for sometime going ahead. However, today’s beginning inflation print will raise a glimmer of hope that the RBI may cut rates at its Feb meeting to support growth.
ICICIdirect:
Due to a fall in the Dollar index, the USDINR pair moved towards its support levels. We feel a bounce could be seen towards 74 levels from the support.
The dollar-rupee December contract on the NSE was at 73.65 in the last session. The open interest fell marginally by 1.8% in the December series contract.
Gainers and Losers on the BSE Sensex:
Market Opens:
Indian indices opened lower on December 15 with Nifty around 13500 amid weak global cues.
At 09:16 IST, the Sensex was down 173.90 points or 0.38% at 46079.56, and the Nifty was down 45.40 points or 0.33% at 13512.80. About 743 shares have advanced, 557 shares declined, and 51 shares are unchanged.
