Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities
Stocks at Dalal Street went for a toss, along with other global markets, as there is chatter all across the globe that the Fed may not change its hawkish tune so soon. The dot plot showed that the terminal rate projection rose to 5.1% from 4.6% in September.
Inflation remains a key concern and the central banks across the globe will try hard to fight against it. Technically, Nifty’s next key support is seen at the psychological 18,001 mark, while the immediate hurdle is at 18,697 mark.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services:
Domestic equities slipped into negative territory following US Fed hawkish commentary and weakness in global markets. Nifty open gap down and closed with loss of 146 points (-0.8) at 18269 levels. Broader market too saw some selling pressure with Nifty midcap 100 down 1.6% while smallcap 100 down 0.6%. All sectors ended in red with PSU bank down more than 3%.
Markets seems to have taken pause after making new highs with Nifty down by 3%. Markets are likely to remain in consolidative range due to lack of triggers in the near term. Also lower participation from institutional investors due to upcoming year-end holidays would keep the markets lackluster. Though investors would keep eye on US Home Sales and GDP (QoQ) numbers to be released next week.
On sectorial front, sugar stocks are likely to remain in lime light on after news reported, government might consider increasing sugar export quota for the current 2022-23. However, some selling might be seen in Banking stock especially in PSU banks on account of profit booking after the sharp rally in last few months.
Amol Athawale, Deputy Vice President - Technical Research at Kotak Securities
The risk-off sentiment continued on Dalal Street as the US Fed's hawkish comment-induced global correction gave local investors the reason to further reduce their equity exposure. Foreign investor selling seemed to have once again gathered pace, which is reflecting badly on local stocks in the last few sessions. While there was no respite from the bears, Dow Futures witnessing a steep fall dampened the market sentiment leading to a broad-based selling.
Technically, lower top formation on daily charts and double top reversal formation on intraday charts is indicating further downside from the current levels.
In addition, the Nifty not only broke the important support level of 18,400 but closed below the same. The next support level for the index would be 50 day SMA or 18,100-18,000 levels. On the flip side, 18,400 could act as an immediate resistance zone for the index, and above the same the index could retest the 20-day SMA or 18,550. In case of further upside, the index could move up to 18,700.
Vinod Nair, Head of Research at Geojit Financial Services:
Global markets extended their rout as the ECB and BoE followed the Fed in raising policy rates by half a percent while maintaining a hawkish tone on inflation.
The aggressiveness of central banks in combating inflation has raised concerns about the global economy's health. Despite attempts to recoup losses, a lack of global support pushed the indices back into negative territory.
Rupee Close:
Indian rupee closed lower at 82.86 per dollar against previous close of 82.76.
Market Close:
Benchmark indices ended lower for the second consecutive session on December 16.
At Close, the Sensex was down 461.22 points or 0.75% at 61,337.81, and the Nifty was down 145.90 points or 0.79% at 18,269. About 1391 shares have advanced, 2026 shares declined, and 125 shares are unchanged.
Dr Reddy's Laboratories, M&M, Adani Ports, Asian Paints and BPCL were among the biggest Nifty losers, while gainers included Tata Motors, HDFC Bank, HUL, Tata Steel and JSW Steel.
All the sectoral indices ended in the red.The BSE midcap and smallcap indices lost 1 percent each.
Dow, Nasdaq futures down 1% each
Nifty Auto index slipped 1 percent dragged by M&M, Ashok Leyland, Sona BLW Precision Forgings
BSE Realty index fell 1 percent dragged by Prestige Estate, Sobha, Oberoi Realty
Himatsingka Seide to raise Rs 608 crore via equity, NCDs
Himatsingka Seide approved issuance of securities in one or more tranches, worth up to USD 13 million or Rs 108 crore, and issuance of non-convertible debentures up to Rs 500 crore, to identified investors.
BSE Information Technology index declined 1 percent dragged by Cerebra Integrated Technologies, Affle (India), Xelpmoc Design and Tech
Nearly Rs 2,000-crore worth of IPOs to hit Dalal Street next week
In December, the fundraising, including the two upcoming IPOs of KFin Technologies and Elin Electronics, will be a little more than Rs 3,800 crore... Read More
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Most major sectors lost on a week-on week basis with BSE IT, Bank FMCG, BSE Consumer Durable, BSE Auto, BSE Reality, BSE Power and Nifty Pharma losing the most. Even Bank Nifty was down around 1%. While one key sector which gained was BSE Oil and Gas.
Within the Nifty Index, ONGC (+5.4%), IndusInd Bank (+2.4%) and Bajaj Finance (+2%) gained the most and Titan Company (-4.7%), Asian Paints (-4.4%) and ICICI Bank (-3.0%) lost the most. Both, DIIs and FPIs were net Buyers in the past five trading sessions.
Markets going ahead may be dominated by global news flows and steps taken by different governments to tackle their economy.
On the economy front, domestic November CPI inflation, at 5.88% (October: 6.77%), saw a sharp decline, led by a steep sequential fall in food prices, while core inflation remained steady at 6.3%. Meanwhile, October IIP contracted sharply by 4% (September: +3.5%).
In global markets, on Wednesday, Federal Reserve’s raised benchmark interest rate by 50 basis point to a target range between 4.25% and 4.5% — the highest rate in 15 years. The central bank said it would continue hiking rates through 2023 to 5.1%, a larger figure than previously expected. There was announcement by ECB and comments by its president, Christine Lagarde, as she stressed that “significant” further rate rises at a “steady pace” were still to come.
Market at 3 PM
Benchmark indices extended the losses and are trading near day's low levels with Nifty below 18300.
The Sensex was down 409.23 points or 0.66% at 61389.80, and the Nifty was down 132.70 points or 0.72% at 18282.20. About 1227 shares have advanced, 2031 shares declined, and 102 shares are unchanged.
Nifty Pharma index fell 1 percent dragged by Glenmark Pharma, Gland Pharma, Dr Reddy's Laboratories
Sharekhan on Wonderla Holidays
-Maintains 'Buy' recommendation on Wonderla Holidays with an unchanged price target of Rs 425
-Company management is optimistic about the medium-term outlook and expects consistent improvement in footfalls in the coming years
-This will boost profitability with EBIDTA margin expected to recover to historical levels of 40% by FY2023 and will consistently improve in the subsequent years
HPCL gets board nod for borrowing upto Rs 10,000 crore on private placement basis
Hindustan Petroleum Corporation board members approved a proposal for borrowing through further issuance of non-convertible debentures, bonds or notes etc. upto Rs 10,000 crore on private placement basis in the domestic market and/or in the overseas market.
Hindustan Petroleum Corporation was quoting at Rs 243.25, down Rs 3.35, or 1.36 percent on the BSE.
Nifty PSU Bank index fell 2.5 percent dragged by Union Bank of India, Punjab and Sind Bank, Bank of Maharashtra
BSE Power index shed 1 percent dragged by ABB India, Adani Transmission, Siemens
VST Tillers Tractors unveils VST 939DI 36hp Tractor
VST Tillers Tractors unveiled the allnew VST 939DI 36hp 4WD Tractor at the KISAN Agri Show 2022 in Pune today.
VST Tillers Tractors was quoting at Rs 2,381.45, down Rs 20.50, or 0.85 percent on the BSE.
AU Small Finance Bank and HDFC Life announce Bancassurance tie-up
AU Small Finance Bank entered into a corporate agency arrangement for soliciting insurance plans of HDFC Life through the bancassurance business model.
AU Small Finance Bank was quoting at Rs 670.35, up Rs 1.45, or 0.22 percent on the BSE.
Ircon International achieves breakthrough of the Escape Tunnel in J&K
Ircon International has completed significant milestone in T-49 of the USBRL line in Jammu & Kashmir with the excavation breakthrough of the Escape Tunnel on 15th December, 2022. This is the longest railway tunnel of 12.76 km in India connecting Sumber Station (at 1418m MSL) & Arpinchala Station (at 1562m MSL), the company said in an exchange filing.
Market at 2 PM
The Sensex was down 270.11 points or 0.44% at 61528.92, and the Nifty was down 94.60 points or 0.51% at 18320.30. About 1321 shares have advanced, 1903 shares declined, and 110 shares are unchanged.
Gainers and losers on the BSE Sensex
Dilip Buildcon receives letter of acceptance for RS 976 crore order
Most active stocks on NSE in terms of volumes
PE/VC investments drop 42% to $4 billion in November
Investments by private equity and venture capital funds have declined by 42 per cent year-on-year to USD 4 billion in November, a report said on Friday.
However, compared to the preceding month of October, investments have increased by 18 per cent, the report by industry lobby IVCA and EY, a consultancy, said, adding this is the second sequential rise in monthly investments.
"A significant gap in the bid/ask spreads was the main factor slowing down deal closure activity in 2Q (April-June) and 3Q 22 (July-September) as a result of which large deals got delayed and companies raised smaller rounds to minimise dilution," EY's partner Vivek Soni said.
India doing better than official data findings: Credit Suisse's Neelkanth Mishra
... Read More
Bikaji Foods International: 7.31 lakh shares (0.29 percent equity) worth Rs 27.96 crore change hands at Rs 381.2 per share.
Market update at 1 PM: Sensex is down 52.33 points or 0.08% at 61746.70, and the Nifty shed 29.70 points or 0.16% at 18385.20.
Suryoday Small Finance Bank: 4.7 percent equity change hands
Equitas Small Finance Bank gets RBI nod for acquisition of shares in bank by Franklin Templeton MF
PSU pack on the block: Steer clear or load up ahead of Budget 2023?
The government may revive the proposal to sell stakes in more PSU banks in the next year’s Budget along with the divestment of BPCL which got stalled in the current fiscal... Read More
Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One
:
Crude prices took a breather on Thursday, as both the benchmark crude indices ended with a 1 percent cut each. The decline in crude prices was triggered by a forecast for fuel demand as a result of a stronger dollar and additional interest rate increases by global central banks.
The second-largest economy in the world, China, lost more momentum in November due to slowing factory output and retail sales that continued to decrease, the weakest figures in six months. These declines were hampered by an increase in COVID-19 cases and widespread virus bans.
A week after a spill of more than 14,000 barrels of oil in Kansas forced a closure, Canada's TC Energy announced it was resuming operations in a segment of its Keystone pipeline, further depressing oil prices.
We expect crude to trade higher towards 6550 levels, a break of which could prompt the price to move lower to 6670 levels.
Dr Reddy's in focus
-Aurigene Oncology, an arm of the company, has reportedresults of AUR101 for moderate-to-severe Psoriasis
-Decides to stop clinical development of AUR101 as an oral drug in Psoriasis
-Aurigene says AUR101 won’t add desirable benefit in moderate-to-severe Psoriasis
Alert | Kotak Mahindra Bank hikes lending rates on overnight to 1-year tenures by 10 basis points
Markets at 12 PM
At 12 pm, the Sensex is down 321.52 points or 0.52 percentat 61,477.51, and the Nifty down 104.90 points or 0.57 percentat 18,310. About 1217 shares have advanced, 1933 shares declined, and 107 shares are unchanged.
Nykaa declines as Kravis Investment Partners offloads stake
Foreign investor Kravis Investment Partners offloaded Rs 629 crore worth of shares in FSN E-Commerce Ventures, the Nykaa Fashion operator, via open market transactions on December 15. Kravis Investment Partners II LLC sold a total of 3.67 crore shares in FSN, at an average price of Rs 171 apiece.
Patel Engineering Board approves fund raise of Rs 350 crore via rights issue
Markets at 11 AM
Sensex down 383.78 points or 0.62 percentat 61,415.25. Nifty down 124.70 points or 0.68 percentat 18290. About 1020 shares have advanced, 2056 shares declined, and 113 shares are unchanged.
Jefferies on Shriram Transport Finance
-Hold call, target at Rs 1,365 per share
-Revise FY23-25 EPS by -4 percent/4 percentfactoring in merger
-Believe AUM should grow at 15 percent CAGR over FY23-25
-Should deliver 14 percentROE over FY23-25
-Risk of potential supply from large non-promoter shareholders stays an overhang
ICICI Direct's Yearly Derivative Outlook
-Despite the increase in F&O stocks, most sectors are witnessing significantly low open interest suggesting scepticism
-Among major sectors, relatively low leverage seen in BFSI, technology, pharma and metals. We believe fresh longs are likely to formed here and relative outperformance can be expected
Check out the sectoral cumulative open interest:
Deepak Fertilisers rises after company announces demerger of mining chemicals & fertiliser businesses
Deepak Fertilisers on December 15 announced the demerger of its mining chemicals and fertiliser businesses. The move will help provide focused leadership, simplify the structure, and add to the growth potential. The restructuring will be done in line with the company’s strategic shift from commodity to specialty, the company said in an exchange filing.
Sailesh C Mehta, Chairman & Managing Director said, "The proposed corporate restructuring shall considerably help create strong independent business platforms within the larger DFPCL brand umbrella, hence enhancing stakeholders' value over time."
Ravindra Rao, CMT, EPAT VP-Head Commodity Research, Kotak Securities
WTI Crude oil trades steady this morning after falling by 1.51 percent on Thursday. Although crude oil fell yesterday, it is on course for a weekly gain. The fall was driven by partial reopening of the Canadian keystone pipeline, easing the supply tightness to some extent. Additionally hawkish central bankers also capped the gains in crude as ECB surprised the markets by stating that the interest rate hikes might stay elevated as the fight against inflation continues.
As bearish factors pulled crude lower, bullish factors are keeping price supported. IEA’s projection of a strong demand in 2023 and supply worries amid impact of embargo on Russian oil might keep prices supported. On the price front although WTI crude corrected it has closed above the support of $76/bbl. The bulls will have to keep the price above the break candle high near $77.75 on closing. If that happens the price might test the next resistance near $81.50/bbl. On the flipside, a close below $76/bblmight pull the price lower towards $73/bbl.
Finance Minister Nirmala Sitharaman at FICCI event
-Industry associations play a very important role in policy making
-There are other uncertainties which are really constraining our supply chains
-Major reset happening globallyin sourcing inputs
-For India, the current positionis that of strength
-Next budget will follow thespirit of the previous budget
Gold Prices Today: Yellow metal to edge lower amid volatility, support around Rs 53,700
Precious metal prices may extend the losses of the previous day. Gold has resistance at Rs 54500 and support at Rs 53700. Silver has resistance at Rs 68800 and support at Rs 67200, said Nirpendra Yadav of Swastika Investmart.... Read More
Market update at 10 AM: Sensex is down 90.24 points or 0.15% at 61708.79, and the Nifty shed 29.10 points or 0.16% at 18385.80.
Anand James - Chief Market Strategist at Geojit Financial Services
:
While offering little or no visibility on the upside prospects for the last few days, we had been systematically pointing towards the extent of downsides that were to follow. We would soon be entering the 18,300-100 band which we had marked down yesterday. This region has the potential to either cool down the nerves, or to set off a powerful plunge that could revive talks of 16,800 again. However, the favoured view expects a pull back towards 18,480-520 region first, performance at which region would be crucial for setting further moves. A collapse is not the most favoured outcome though.
The oil & gas index added half a percent led by GAIL India, ONGC, Reliance Industries and Petronet LNG
The sector is buzzing after Government slashedwindfall tax on domestic crude to Rs 1,700 a tonne
16% equity of GMM Pfaudler changes hands in a block trade
On December 15, it was reported that Pfaudler Inc, a promoter of listed company GMM Pfaudler Ltd, will sell a majority of its stake in the company in a block deal that will fetch the shareholder Rs 2,283crore. The floor price had been set at Rs 1,700 apiece, which is a 11.67 percentdiscount to the company's closing price on Thursday.
