Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty closed marginally in the negative after recovering sharply from the morning lows on December 20. Nifty recovered post noon after the negative effect of the unexpected hawkish move by Bank of Japan to widen the band of long term yields, withered off. Nifty closed 0.19% or 35.2 points lower at 18385.3.
Global markets fell after the Bank of Japan unexpectedly changed its ultra-dovish stance and tweaked its bond yield controls - a move that will allow long-term interest rates to rise more.
Low market volumes have led to higher intra day volatility in the markets. Nifty could now remain in the 18,269-18,441 band in the near term and a breach of this band could result in accelerated move in that direction.
Rupee may exhibit volatility, but upside risk remains: Kotak Securities
After a low volatility in 2022, rupee and almost all currencies may witness huge volatility in 2023. In 2022, USDINR had rallied nearly 10% to an all time high of 83.25 on spot.
We could see prices form a sideways to upward range in the new year. We expect an overall range of 79.50 and 86.50 on spot in 2023.
Vinod Nair, Head of Research at Geojit Financial Services
The Bank of Japan shocked global markets in a totally unexpected move by raising the upper band limit for the 10-year yield to 50 bps, which is seen as a step towards a hawkish policy shift. This has aggravated the sell-off in the global market, which was already risk-averse due to mounting recessionary fears following the Fed's comment.
In this backdrop, the US GDP numbers expected on Thursday will provide a picture of the strength of the US economy.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets struggled through the session and ended in red due to weak global cues, but managed to recoup most of its early losses. The choppy trend can be attributed to lack of fresh positive triggers. Also investors are awaiting the release of the minutes of the RBI's recently concluded monetary policy on Wednesday, which could give some clarity on the central bank's likely course of action in the near term.
Technically, after early morning sharp intraday selloff the index took support near 18,200 and recovered from the day's low level.
Currently, the market is witnessing a non-directional activity and perhaps traders are waiting for either side breakout. For bulls, 18,450 would be the important breakout level to watch. And if the market manages to trade above the same, then we can expect a quick uptrend rally towards 18,550-18,600. On the flip side, trading below 18,200 may increase further weakness up to 18,100-18,050.
Rupee Close:
Indian rupee closed marginally lower at 82.75 per dollar against previous close of 82.70.
Market Close:
Benchmark indices ended marginally lower on December 20 with Nifty below 18,400.
At Close, the Sensex was down 103.90 points or 0.17% at 61,702.29, and the Nifty was down 35.20 points or 0.19% at 18,385.30. About 1646 shares have advanced, 1780 shares declined, and 126 shares are unchanged.
SBI Life Insurance, Eicher Motors, UPL, Tata Motors and HUL were among the biggest Nifty losers, while gainers were Adani Enterprises, TCS, Reliance Industries, Axis Bank and IndusInd Bank.
Among sectors FMCG, auto, and realty ended 0.5-1 percent lower.
The BSE midcap and smallcap indices ended on flat note.
Gold climbs above USD 1,800
Gold prices jumped 1% to above the key USD 1,800 level on Tuesday as the dollar dropped to session lows after the Bank of Japan's surprise policy tweak, while markets also weighed the outlook for the U.S. Federal Reserve's interest rate strategy.
Spot gold was up 0.8% at USD 1,802.11 per ounce by 0925 GMT. U.S. gold futures rose 0.8% to $1,812.50.
Nomura View On Steel Sector
China steel production declines in November while global steel prices recover
November volumes were weaker than volumes even versus 2019 & 2020
China’s December output may be weak as well
Global HRC price increases in December
Indian HRC prices declined & at a major discount to Chinese imports
Iron ore prices may increase in the near term
3i Infotech bags contract from Eureka Forbes worth Rs 10.25 crore
3i Infotech has been awarded a contract for Digital Infrastructure Managed services by India's leading health and hygiene brand “Eureka Forbes Limited” (EFL).
Total contract value is approximately Rs 10.25 crores, spread across three years.
Elin Electronics IPO sees 19% subscription on first day of bidding
The initial public offering (IPO) of Elin Electronics was subscribed 19 percent on December 20, the first day of bidding. The issue garnered bids for 26.92 lakh shares against 1.42 crore shares on the offer.
Retail investors bought 32 percent shares of the allotted quota, while high networth individuals (HNIs) bid for 14 percent shares of the portion set aside for them.
Qualified institutional buyers (QIBs) put in bids for 2,520 shares as against 40.59 lakh shares reserved for them.
KFin Technologies IPO bought 66% on day two, QIB portion fully booked
The public issue of KFin Technologies so far has seen muted response from investors on December 20, the second day of bidding. The offer has garnered bids for 1.57 crore shares against IPO size of 2.37 crore shares, getting subscribed 66 percent.
Qualified institutional investors, who have been allotted 75 percent of the offer, have bought 1.02 times the reserved quota.
Retail investors have bought 57 percent of the portion set aside for them, while there has been muted interest from high networth individuals who have subscribed just 2 percent of their quota. Up to 15 percent of the total offer is reserved for high networth individuals and the balance 10 percent for retail.
Market at 3 PM
The Sensex was down 128.67 points or 0.21% at 61677.52, and the Nifty was down 42.30 points or 0.23% at 18378.20. About 1474 shares have advanced, 1802 shares declined, and 104 shares are unchanged.
Sudarshan Chemical Industries large trade | 8.46 lakh (1.22% equity) worth Rs 31.85 crore change hands at an average of Rs 376.25 per share
Nifty Bank index shed 0.5 percent dragged by IDFC First Bank, Punjab National Bank, Federal Bank
Nomura retains 'reduce' rating on JSW Steel:
JSW Steel stock was in focus on December 20 after Nomura retained its reduce rating on the stock.
The Japanese research firm has maintained its reduce rating on the stock with a target of Rs 570 per share, a downside of 29 percent from the current market price.
The brokerage firm is of the view that operational improvements at Dolvi will lead to additional cost savings.
Elin Electronics IPO sees 14% subscription on first day of bidding
The initial public offering (IPO) of Elin Electronics was subscribed 14 percent on December 20, the first day of bidding. The issue garnered bids for 19.89 lakh shares against 1.42 crore shares on the offer.
Retail investors bought 24 percent shares of the allotted quota, while high networth individuals (HNIs) bid for 10 percent shares of the portion set aside for them.
Qualified institutional buyers (QIBs) put in bids for 2,520 shares as against 40.59 lakh shares reserved for them.
European Markets Updates
PNB Gilts Board re-appoints Vikas Goel as MD & CEO for 3 years
India's power demand robust in 1HFY23 but likely to decelerate going further: Fitch
After benefitting from a post-pandemic rebound in demand and low base during H1FY22, power demand in India saw a robust 11.3 percent year-on-year (YoY) growth in H1FY23, as per Fitch Ratings. However, the growth is likely to decelerate H2FY23, it added.
On the back of strong power demand in H1FY23, Fitch estimates that the receivable position of generation companies' (gencos) will improve as distribution companies (discoms) start clearing their dues to avoid the central government’s late payment surcharge.
As per the estimates, thermal power plants will benefit from continued power demand growth, and thus their average plant load factor (PLF) will remain above 60 percent in FY23 (compared to 64.5 percent in H1FY23). Fitch also expects that improved domestic coal supply will support coal inventory at power plants and should moderate coal import growth from current high levels, although imports are expected to remain robust.
Salasar Techno Engineering bags two orders worth Rs 748.5 crore from Pashchimanchal Vidyut Vitran Nigam
Market update at 2 PM: Sensex is down 439.72 points or 0.71% at 61366.47, and the Nifty shed 140.40 points or 0.76% at 18280.10.
KFin Technologies IPO bought 60% on day two, QIB portion booked 94%
The public issue of KFin Technologies so far has seen muted response from investors on December 20, the second day of bidding. The offer has garnered bids for 1.43 crore shares against IPO size of 2.37 crore shares, getting subscribed 60 percent.
Qualified institutional investors, who have been allotted 75 percent of the offer, have bought 94 percent of their quota.
Retail investors have bought 47 percent of the portion set aside for them, while there has been muted interest from high networth individuals who have subscribed just 2 percent of their quota. Up to 15 percent of the total offer is reserved for high networth individuals and the balance 10 percent for retail.
Here are the stocks that have touched their 52-week lows during the day; click to view more
Vikas Lifecare arm gets technical advisory contract from Dornier Group GmbH
Vikas Lifecare's material subsidiary Genesis Gas Solutions has received the technical advisory contract from Dornier Group GmbH.
Genesis will pro-vide technical advisory for optimization of battery storage systems for distribution grid applications for Dornier Group's ongoing project in Mali, Africa.
Vikas Lifecare was quoting at Rs 4.86, up Rs 0.03, or 0.62 percent on the BSE.
Oil prices edge higher; China COVID surge limits gains
Oil prices inched higher on Tuesday, supported by a softer dollar and a U.S. plan to restock petroleum reserves, but gains were capped by uncertainty over the impact of rising COVID-19 cases in top oil importer China.
Brent crude futures were up 15 cents, or 0.2%, at $79.95 a barrel at 0710 GMT, adding to a 76 cent gain in the previous session.
U.S. West Texas Intermediate (WTI) crude futures rose 32 cents, or 0.4%, to $75.51 a barrel, after climbing 90 cents in the previous session.
BSE Capital Goods index fell 1 percent dragged by BHEL, L&T, Honeywell Automation India
Mahanagar Gas appoints Ashu Shinghal as MD
The Board of Directors of Mahanagar Gas has approved the appointment of Mr. Ashu Shinghal, nominee of GAIL (India) Limited, as an Executive Director (Additional) designated as Managing Director of the company with effect from close of business hours of December 23, 2022,
Mahanagar Gas was quoting at Rs 907.05, up Rs 0.60, or 0.07 percent on the BSE.
Ashima board approves fundraising of upto Rs 50 crore via NCDs
The board of directors of Ashima at its meeting held on December 20, 2022, have considered and approved the raising of funds through issuance of Non-Convertible Debentures on private placement basis in one or more tranches, up to an amount not exceeding Rs 50 crore.
Ashima was quoting at Rs 16.95, up Rs 0.05, or 0.30 percent on the BSE.
Adroit Infotech board appoints Ravi Chandra Roy as CFO
The board of Adroit Infotech considered and approved the appointment of Mr Ravi Chandra Roy as CFO of the company w.e.f 16.01.2023
Adroit Infotech Limited was quoting at Rs 26.45, down Rs 0.90, or 3.29 percent.
Emami Large Trade | 5.02 lakh shares (0.11% equity) worth Rs 21.55 crore change hands at Rs 429 per share
Emami was quoting at Rs 426.20, down Rs 3.80, or 0.88 percent on the BSE.
Market at 1 PM
The Sensex was down 509 points or 0.82% at 61297.19, and the Nifty was down 160.70 points or 0.87% at 18259.80. About 1287 shares have advanced, 1935 shares declined, and 110 shares are unchanged.
Homesfy Realty SME IPO opens for subscription on 21 December
Homesfy Realty is selling 8,05,200 equity shares of face value Rs 10 each at a price of Rs 197 a piece. The issue is open for Retail & HNI subscriptions from December 21, 2022, till December 23, 2022.
Retail Investors can apply for a minimum & maximum of 600 shares (1 Lot) amounting to Rs 1,18,200.00 & HNI Investors can apply for a minimum of 1200 shares (2 Lots) amounting to Rs 2,36,400.00. The shares of the company will be listed on the NSE Emerge Platform.
Gujarat State Petronet large trade | 8.05 lakh shares (0.14% equity) worth Rs 21.81 crore change hands at Rs 270.95 per share.
Gujarat State Petronet was quoting at Rs 273.70, up Rs 1.70, or 0.63 percent.
Supreme Industries Large Trade | 2.81 lakh shares (0.22% equity) worth Rs 70.23 crore change hands at Rs 2,500 per share.
Nifty FMCG index shed 1 percent dragged by Hindustan Unilever, Godrej Consumer Products, Dabur India
Ipca Laboratories buys additional 6.53% stake in Trophic Wellness
Ipca Laboratories has acquired further 6.53% stake in Trophic Wellness (TWPL). TWPL is engaged in manufacturing and marketing several SKUs of neutraceuticals under the brand name “Nutricharge”. With the above shares, the company now holds 58.88% shareholding in TWPL.
Ipca Laboratories was quoting at Rs 857.60, up Rs 3.20, or 0.37 percent on the BSE.
InterGlobe Aviation, SpiceJet shares in focus:
The domestic air passenger traffic in current calendar year (January-November) increased by 52.19% to 11.05 crore, and in November, the same rose by 11.06% to 1.16 crore compared to same period last year.
InterGlobe Aviation-owned IndiGo's market share dropped to 55.7% in November 2022, from 56.7% in October 2022, but SpiceJet market share was up at 7.5% from 7.3% in same period, reports CNBC-TV18.
SpiceJet was quoting at Rs 41.30, up Rs 0.10, or 0.24 percent and Interglobe Aviation was quoting at Rs 2,048.75, up Rs 21.50, or 1.06 percent.
BSE Midcap index declined 1 percent dragged by Indian Overseas Bank, Godrej Properties, IDFC First Bank
Market at 12 PM
The Sensex was down 636.01 points or 1.03% at 61170.18, and the Nifty was down 201.00 points or 1.09% at 18219.50. About 1177 shares have advanced, 2005 shares declined, and 119 shares are unchanged.
Asian shares slide
The yen surged and Asian shares fell sharply on Tuesday after Japan's central bank unexpectedly tweaked its bond yield controls - a move that will allow long-term interest rates to rise more.
While the Bank of Japan kept broad policy settings unchanged it widened the allowable band for long-term yields to 50 basis points either side of that, from 25 basis points previously.
That triggered an immediate spike in the yen with the greenback dropping 2.71% after the decision to 133.16, a four-month low.
In turn, the Nikkei benchmark index slumped 2.71% after trading in positive territory earlier in the day.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.6%.
The BOJ decision was taken as a signal that the forces which drove the yen to three-decade lows this year may be beginning to turn.
BOJ tweaks operational functions of yield curve control
The Bank of Japan said on Tuesday it will widen the band at which it will allow the 10-year government yield to move around its 0% yield target, as part of fine-tuning measures to address the cost of prolonged monetary easing.
The BOJ also decided to sharply increase the amount of government bond buying, it said in a policy statement.
As widely expected, the BOJ kept unchanged its -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield by a unanimous vote.
It also maintained its policy guidance that pledges to ramp up stimulus as needed, and projecting that short- and long-term interest rates will move at "current or lower levels."
A Ethiopian Bank partner with Intellect Design arm
Intellect Global Consumer Banking (iGCB), the consumer banking arm of Intellect Design Arena, announced that a new Ethiopian bank has chosen its product Intellect Digital Core (IDC) to power its banking. IDC has been recognized as the number 1 platform in Retail banking as per IBS Intelligence in 2022.
Intellect Design Arena was quoting at Rs 424.90, down Rs 0.35, or 0.08 percent.
BSE Realty index fell 2 percent dragged by Godrej Properties, DLF, Oberoi Realty
Axiscades Technologies selects by Airbus
Axiscades Technologies has again been selected by Airbus to provide engineering services for product design and development and plant engineering for all Airbus aircraft programs.
Nomura On JSW Steel
-Reduce rating, target at Rs 570 per share
-Efficient use of land in Dolvi, additional land acquisition in progress
-Operational improvements at Dolviwill lead to additional cost savings
India VIX spikes 9 percent
The India VIX index, maintained by the National Stock Exchange, surged 9 percent on December 20. The index is calculated by looking at the movement in the prices of options contracts of the Nifty 50 index.
It is an indicator that is often seen as a measure of the amount of fear in the stock market.
Govt plans tax waivers for IDBI Bank buyer: Sources
The Indian government is likely to waive some tax norms for the buyer of IDBI Bank in a bid to attract more suitors for a majority stake sale in the lender, two government sources told Reuters on Tuesday.
The finance ministry is looking to relax a tax clause, which would require the buyer of IDBI Bank to pay additional tax if the share price rises post the final bid, one of the officials told Reuters.
Markets At 11 AM
Sensex is down 659.21 points or 1.07 percentat 61,146, and the Nifty is down 205.70 points or 1.12 percentat 18,214. About 1245 shares have advanced, 1862 shares declined, and 129 shares are unchanged.
Take a look at the stocks dragging down indices
