Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
We almost hit the target of 16400 and the Nifty witnessed a bounce. The trend however continues to remain bearish and we could use higher levels to go short for the next target of 16150-16200. The upside for the index is currently capped and the trend is clearly down!
Sachin Gupta, AVP, Research at Choice Broking:
After a gap down opening, the Nifty index continued the downward move for the day and made a low at 16410.20 levels but during the closing hours, we witnessed a further pullback in the index and it has closed at 16614.20 levels with 2% down fall while Bank Nifty has declined more than 3% to settle at 34439.80 levels.
The index has also moved below Middle Bollinger Band formation & 100-Days SMA, which suggest a bearish trend. A momentum indicator RSI Stochastic & MACD has traded with negative crossover.
At present, the index has support at 16450 levels while resistance comes at 16800 levels. On the other hand, Bank Nifty has support at 34000 levels while resistance at 35000 levels.
Vinod Nair, Head of Research at Geojit Financial Services:
India has been undergoing a phase of consolidation in the last 2 months. Currently sell-off is due to rapid rise in FIIs selling triggered by hawkish world central banks’ policy, cautious view on Indian market due to high valuation compared to peers and drop in retail inflows.
We feel that we are reaching the last phase of this consolidation in terms of price correction. Some pockets have become fair however the overall market is still trading at the upper-hand which will continue to affect the performance of broad market, in the short-term. Long-term investors can chip into high quality stocks with a focus on defensives and India focused businesses.
Market Close
: Benchmark indices ended lower for the second consecutive session on December 20 on rising concern over Omicron variant.
At close, the Sensex was down 1,189.73 points or 2.09% at 55,822.01, and the Nifty was down 371.00 points or 2.18% at 16,614.20. About 621 shares have advanced, 2604 shares declined, and 97 shares are unchanged.
BPCL, Tata Steel, Tata Motors, IndusInd Bank and SBI were among the top Nifty losers. Gainers included Cipla, HUL and Dr Reddy’s Laboratories.
All the sectoral indices ended in the red with realty, bank, capital goods and metal indices fell 3-4 percent. BSE midcap and smallcap indices shed over 3 percent each.
Yash Gupta, Equity Research Analyst, Angel One
Nifty 50 fall 2.5% and Bank Nifty fall 3.4% while pharma and FMCG held strong. Market falls today on the back of global concern along with omicron virus concern in India. Nifty 50 has touched the lows of 16411, while Bank Nifty has fallen more than the Nifty and touched the low of 34020.
On the border market side, Nifty midcap 100 down by 3.95% and Nifty small-cap down by 4.05%.
We are suggesting investors be cautious on the market and avoid buy on dips strategy along with this we suggest investing some portion of the portfolio in the defensive sector. We have a buy call on Sun Pharmaceuticals Limited with a target price of Rs 950.
Axis Bank soon sign deal with Citi for India retail business
Axis Bank may be the highest bidder for Citi’s India retail business and likely to soon sign exclusivity deal with Citi. However, Kotak Bank, IndusInd Bank have also been in the race for Citi’s India retail business, quoting Sources, reported CNBC-TV18.
Axis Bank was quoting at Rs 672.95, down Rs 16.10, or 2.34 percent.
Wardwizard Innovations signs MOU with the Gujarat government to invest Rs 500 crore
WardWizard Innovations and Mobility signed a memorandum of understanding (MOU) with the Gujarat government to invest Rs 500 crore. The agreement aims to foster the growth of the electric vehicle industry and meet the government’s vision of strengthening green mobility in the state, company said in its release.
Wardwizard Innovations & Mobility was quoting at Rs 69.30, down Rs 1.20, or 1.70 percent on the BSE.
Market at 3 PM
Benchmark indices erased some of the intraday losses but still trading lower with Nifty around 16,600 level.
The Sensex was down 1,189.17 points or 2.09% at 55822.57, and the Nifty was down 368.30 points or 2.17% at 16616.90. About 583 shares have advanced, 2632 shares declined, and 94 shares are unchanged.
Balrampur Chini Mills gets order to supply 18,000 Kilo Litres of Ethanol
Balrampur Chini Mills received order to supply 18,000 Kilo Litres of Ethanol to Private Sector OMC. Hence, the company has received total order of 1,57,100 Kilo Litres for supplying Ethanol to both public sector and private sector OMCs.
Vedanta was quoting at Rs 321.75, down Rs 10.60, or 3.19 percent on the BSE.
BSE Healthcare index fell 1 percent dragged by the Dishman Carbogen Amcis, IND-Swift Laboratories, Solara Active Pharma Sciences
Axis Bank to raise up to Rs 5,000 crore by issuing bonds:
Axis Bank proposes to raise funds by issuing senior unsecured taxable redeemable non- convertible debentures of Rs 10 lakh each for cashat par with base issue size of Rs 2,000 crore and green-shoe option to retain over-subscription of Rs 3,000 crore thereby aggregating up to Rs 5,000 crore,” Axis Bank said in a regulatory filing.
Axis Bank was quoting at Rs 671.05, down Rs 18.00, or 2.61 percent.
Supriya Lifescience IPO subscribed 28.27 times on final day
The public issue of active pharmaceutical ingredients supplier Supriya Lifescience witnessed strong demand from investors as the offer was subscribed 28.27 times.
It received bids for 41.07 crore equity shares against the IPO size of 1.45 crore equity shares on December 20, the final day of bidding.
Retail investors continued to provide strong support to its public issue as their reserved portion was subscribed 44.74 times. Non-institutional investors' portion was booked 61.08 times, while a part set aside for qualified institutional investors saw 6.38 times subscription.
Expert's Take On Market
"Indian equity benchmarks continued their selling pressure amid negative cues from other Asian markets. Indian Shares slumpedtodayas raging global Omicron infections threatened to derail economic recovery, while Future group stocks jumped after the country’s antitrust agency suspended a deal with Amazon. Participants showed concerned as rating agency ICRA has said the growth momentum lost in November 2021 on back of demand and supply chain disruptions in parts of south India on account of untimely rainfall," saidGauravGarg, Head of Research atCapitalviaGlobal Research.
Europe Update
European markets plunged sharply with the Germany's DAX, Britain's FTSE and France's CAC falling around 2 percent each as Omicron Covid-19 cases have increased rapidly, forcing the governments to take stricter measures across continent. ahead of Christmas holidayand New Year celebrations.
Market Outperformers
Expert's Take On Market Correction
"Indian equity markets are witnessing sharp correction on the back of rising worries of omicron, hawkish global central banks, and most importantly relentless selling by FIIs.We are seeing the first meaningful correction in the current bull run and this correction has completed more than 10 percentfrom highs however we are in a structural bull run where every correction is a great buying opportunity," saysParthNyati, Founder atTradingo.
Technically, he feels 16,700-16,400 is the first strong demand zone where he can expect a strong bounceback while 16,200-16,000 should be a worst-case scenario. "On the upside, 17,000 will be immediate resistance while 17,250 will be a critical hurdle; above this, we can expect a massive short-covering rally."
Volatility Increases
The volatility spiked given the global growth concerns. India VIX, which measures the expected volatility in the market, jumped 17.15percent to 19.17.
Wealth Erosion
Investors have lost more than Rs 9 lakh crore of their wealth in a single day today, as the BSE market capitalisation dropped to Rs 250 lakh crore, from Rs 259.4 lakh crore in previous session.
In last two months, nearly Rs 25 lakh crore of wealth has been eroded, in comparison with market capitalisation of Rs 274.69 lakh crore reported on October 18, 2021.
RBI to conduct a VRRR worth Rs 2 lakh crore
The Reserve Bank of India (RBI) will conduct a three-day variable rate reverse repo (VRRR) auction worth Rs 2 lakh crore under its liquidity adjustment facility.
Notably, during variable rate reverse repo auctions, banks lend their excess liquid reserves to RBI, getting between 3.8-3.9 percent interest.
Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel One:
Last week, Spot Gold gained 0.6 percent as mounting inflation concerns, a weaker Dollar and retreating US Treasury yield helped the yellow metal end its four week long losing streak.
The US Federal Reserve stated that they would increase the speed of tapering the expansionary policy in the months ahead and scheduled three interest rate hikes by the end of 2022 following the progress in the US economy and increasing inflation levels.
However, the US Central bank kept the interest rates steady at 0 - 0.25 percent in the meet scheduled during the week. Rising inflation worries across borders boosted appeal for the yellow metal as it is widely considered as a hedge against inflation.
Depreciating US Dollar and widening impact of the Omicron virus on the global economy might continue supporting Gold in the week ahead. However, boost in the markets risk appetite following FED’s comments over the developments in US economy is expected to keep the prices check.
Worries over impact of the new Omicron virus on the global economic growth is expected to boost demand for the safe haven, Gold.
BSE Power index shed 3 percent dragged by the BHEL, Tata Power, Adani Transmission
Prashant Tapse, Vice President (Research) at Mehta Equities:
The sell-off in today’s trade is one of the most significant selling pressures witnessed recently on Dalal Street. As long as headline inflation+omricon risks remain elevated, investors need to remain nimble footed as the economic recovery will probably be in a zig zag mode.
The ongoing pessimism indicates that the recent dramatic crash is nowhere near over. The Nifty’s biggest support seen only at 15871-16000 zone with an inter week-perspective.
For the day, there are some minor supports at 15359 mark. Caution will continue to be the buzzword and any intraday/interweek strength near 16900-17000 zone will be an opportunity to lighten leveraged long positions.
Market at 1 PM
Benchmark indices extended the fall and trading at day's low level with Nifty around 16450.
The Sensex was down 1,723.80 points or 3.02% at 55287.94, and the Nifty was down 534.10 points or 3.14% at 16451.10. About 488 shares have advanced, 2684 shares declined, and 93 shares are unchanged.
Nifty PSU Bank index fell nearly 5 percent dragged by the Central Bank of India, Indian Bank, Bank of India
Nifty PSU Bank index fell nearly 5 percent dragged by the Central Bank of India, Indian Bank, Bank of India
Royal Enfield recalls 26,300 units of Classic 350 on potentially faulty brakes
Eicher Motors, which owns the iconic Royal Enfield brand, has recalled 26,399 units of its most popular motorcycle Classic 350, according to the Economic Times.
In a statement sent to the Society of Indian Automobile Manufacturer’s Association, the company cited a potential brake issue, and said the recall was a precautionary measure.
The issue pertains to a J1A motorcycle produced between September 1 and December 5.
Eicher Motors was quoting at Rs 2,397.80, down Rs 64.55, or 2.62 percent.
Precision Camshafts clarifies on queries by Ministry Of Corporate Affairs
Precision Camshafts has clarified that the queries are on basic and routine information of the company related to accounts of earlier years and statutory registers, etc.
The company in process of providing all the necessary information to authority. The company will keep all the stakeholders updated on this matter to ensure that stakeholders have complete trust on company, confidence and its wellbeing, company said in its release.
Precision Camshafts was quoting at Rs 130.70, down Rs 14.90, or 10.23 percent.
Yash Gupta, Equity Research Analyst, Angel One:
Shriram Properties IPO opens at Rs 95, which is a discount of 19.5% to its issue price of Rs 118. Currently, the company is trading at price to book value of 1.83 times, which is attractive compared to other listing residential developers.
We suggest investors to hold the stock if they have received the allotment and investor who has not received the allotment can buy at the current price.
TVS Motor Company partners with what3words:
TVS Motor Company has announced the integration of the innovative location technology, what3words into its customer app – TVS Connect. Beginning today, TVS Connect users can share and navigate to any location using three simple words. Illustrative of its industry-leading commitment to a superior customer experience through technology prowess, TVS Motor Company has become the first Indian two-wheeler manufacturer to bring this unique addressing system to its customers, as per the cmpany's press release.
TVS Motor Company was quoting at Rs 599.80, down Rs 16.10, or 2.61 percent.
Market at 12 PM
Benchmark indices remained under pressure with Nifty around 16550 and Sensex down 1400 points.
The Sensex was down 1,403.27 points or 2.46% at 55608.47, and the Nifty was down 425.50 points or 2.51% at 16559.70. About 543 shares have advanced, 2592 shares declined, and 96 shares are unchanged.
Around 70 stocks trading at 52-week low including HDFC Asset Management Company, Gillette India, DCB Bank, Exide Industries: Click for More
BSE Midcap index fell 3 percent dragged by the AU Small Finance Bank, Sona BLW Precision Forgings, Astral:
ITI receives work order from Tamil Nadu government worth Rs 433 crore
ITI has received a work order from TANFINET (Tamil Nadu Fibrenet Corporation Limited) (A Govt. of Tamil Nadu Undertaking) regarding BharatNet Phase-II in Tamil Nadu for Package D. The value of the contract is Rs 432.97 crore and has to be implemented within a time period of 360 days, followed by three years for operations & maintenance from the date of ‘Project Go-Live’ in accordance with the delivery schedules, company said in the press release.
ITI was quoting at Rs 112.25, down Rs 0.80, or 0.71 percent on the BSE.
Supriya Lifescience IPO subscribed 7.93 times on final day
The public issue of active pharmaceutical ingredients supplier Supriya Lifescience witnessed strong demand from investors as the offer was subscribed 7.93 times.
It received bids for 11.52 crore equity shares against the IPO size of 1.45 crore equity shares on December 20, the final day of bidding.
Retail investors continued to provide strong support to its public issue as their reserved portion was subscribed 33.56 times. Non-institutional investors' portion was booked 5.49 times, while a part set aside for qualified institutional investors saw 61 percent subscription.
Likhita Chepa, Senior Research Analyst at CapitalVia Global Research on Shriram Properties Listing
Shriram Properties, South India based real estate player, got listed at a discount of 23 precent due to ongoing weaker market sentiments despite the issue being fairly valued. Considering the volatility in the market, we do not advise investors who are wishing to add this stock to their portfolio at current levels as we expect further correction around 15 percent in the coming sessions. With FED planning to increase the pace of bond purchases, we expect FII’s to pull out their money in the coming months due to which high beta sectors like infra and realty might witness some selling pressure. Therefore, short term investors can avoid adding this stock to their portfolio at the current juncture. Long term investors can consider buying this stock at 75-80 levels.
Equitas Small Finance Bank Limited empanelled as a banking partner to the Government of Maharashtra
The Government of Maharashtra has tied up with Equitas Small Finance Bank Limited as a banking partner to distribute salaries and allowances to the existing employees as well as make provision of pension to pensioners, thereby providing solutions to institutions and value-added services for individuals.
Bandhan Bank, Karur Vysya Bank, The South Indian Bank are the other three banks that are assigned the role of distributing salaries, allowances to government employees.
Market at 11 AM
Benchmark indices were trading at day's low with Sensex falling 1300 points and Nifty below 16600.
The Sensex was down 1,329.70 points or 2.33% at 55682.04, and the Nifty was down 402.70 points or 2.37% at 16582.50. About 545 shares have advanced, 2540 shares declined, and 96 shares are unchanged.
Gaurav Garg, Head of Research, Capitalvia Global Research:
The Indian Benchmarks made gap-down opening today amid rising Omicron coronavirus cases worldwide. Traders will be cautious with continuous net outflow of foreign funds as Foreign Portfolio Investors (FPIs) have pulled out Rs 17,696 from the Indian markets in December month so far.
RBI data showed decline in India’s forex reserves for the third consecutive week. There may be some buzz in the sugar stocks as the Food secretary ruled out a hike in the minimum selling price of sugar from the current domestic rates.
Our research suggests that the levels of 16350 may act as support levels in the market. If the market unable to sustain above the level of 16350, we can expect the market to trade till the lower range of 16000-16100.
BSE Smallcap index fell 3 percent dragged by the Precision Camshafts, Shriram EPC, Jindal Worldwide
Santosh Meena, Head of Research, Swastika Investmart:
The Shriram Properties IPO saw a muted demand on the back of losses where other real estate companies were booming in the last two years.
In the upcoming years, real estate is likely to perform better, and only aggressive investors are advised to look at Shriram Properties, while others can opt for Sobha, Prestige, or Brigade.
The IPO got listed at Rs 90 apiece which is a 23.73% discount to the issue price of Rs 118. Investors who are aggressive in their investing can hold the stock for the long term while short-term investors should take a stop loss of Rs 80 on a closing basis.
BSE Oil & Gas index slipped over 3 percent dragged by the Adani Total Green, BPCL, ONGC
Follow our LIVE blog for the latest updates on the new Omicron variant of COVID-19 and its impact
Amit Pabari, MD, CR Forex Advisors
The Indian Rupee is expected to start the fresh week on a mixed note with an expected range of 75.80-76.15. Globally, the US dollar was seen strengthening again in the US session Friday as riskier currencies came again under fresh pressure on concerns about the spread of Omicron cases.
Many countries in Europe reimposed tightening measures. The Netherlands imposed a nationwide lockdown until mid-January. The U.K. health minister said he would not rule out new restrictions before Christmas. The US futures and Asian markets are trading with losses and crude oil prices too can be seen trading under pressure.
We are expecting some correction in the USDINR pair upto 75.80 and 75.20 before further move towards 77 levels over the medium term.
Nifty Bank index shed 3 percent dragged by the AU Small Finance Bank, Bandhan Bank, RBL Bank
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The lows of Friday was a ray of hope but the index has opened with a gap down this morning which cements the validity of a downtrend.
The upside for the index is capped for the time being and every rally up can be used to short this market for a target of 16400.
Rupee Opens
Indian rupee opened 6 paise lower at 76.14 per dollar on Monday against Friday's close of 76.08.
The US dollar increased by 0.56% on Friday amid risk aversion in global markets. Market sentiments were hurt on worries over rising interest rates and surge in Covid-19 cases slowing global economic recovery. Further, the dollar strengthened as the US Federal Reserve said they would accelerate the pace of monetary tightening and signalled three rate hikes next year, said ICICI Direct.
Rupee future maturing on December 29 appreciated by 0.11% on weakness in the dollar and softening of crude oil prices, it added.
Market at 10 AM
Benchmark indices extended the opening losses and trading near the day's low points with Nifty below 16700.
The Sensex was down 1,058.30 points or 1.86% at 55953.44, and the Nifty was down 321.90 points or 1.90% at 16663.30. About 547 shares have advanced, 2430 shares declined, and 87 shares are unchanged.
