Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking
We are witnessing a reversal in the dollar index, while political stability in the US and the probability of a further fiscal stimulus package has pushed the long-term US yields higher.
Moreover, there is a possibility that the Fed may reduce its bond-buying plan towards the end of this year, which could further push US yields higher and consequently hurt the rupee.
Back home, with RBI mopping up dollar inflows, the local currency can test 73.80 to 74 levels in the coming sessions.
We expect the rupee to trade in a broad range of 73 to 74.20 levels for the rest of this month.
Ajit Mishra, VP - Research, Religare Broking
Markets will first react to TCS numbers in early trades on Monday. Besides earnings, global cues and updates on vaccine drive will also remain in focus.
At present, the rotational buying across the sectors is helping the index to inch higher and we suggest aligning positions according to the trend.
However, traders should avoid going overboard and keep a check on leveraged positions.
Technically, the Nifty index has been trading in a rising broadening formation and the upper band of the pattern currently lies around 14,500, which may act as an immediate hurdle.
S Ranganathan, Head of Research at LKP Securities
IT and auto stocks pulled their weight today ahead of TCS earnings as bulls went berserk, lifting indices by 1.5 percent buoyed by positive global cues. An array of high-quality mid-caps across sectors registered smart gains as mood remained buoyant through the day.
Closing update:
Equity benchmarks Sensex and Nifty settled at fresh closing highs boosted by gains in sectors led by IT and auto.
Nifty hit its fresh record high of 14,367.30 while the Sensex hit a record high of 48,854.34.
The rally in the market was broad-based as the Midcap and Smallcap indices clocked gains of about a percent.
BSE Midcap hit a fresh record high of 19,161.20 while the Smallcap index hit an intraday high of 18,984.69. The Smallcap index is still about 1,200 points below its all-time high of 20,183.45 that it hit on January 15, 2018.
Sensex closed 689 points, or 1.43 percent, up at 48,782.51 and Nifty settled 210 points, or 1.48 percent, up at 14,347.25.
BSE Midcap and Smallcap indices closed 1.01 percent and 0.72 percent higher, respectively.
BSE IT index hits an all-time high of 25,901.33.
Nearly 500 stocks hit upper circuits:
Today's rally in the market was not confined to just a few sectors as most sectoral indices logged healthy gains.
Nearly 500 stocks, including Jammu & Kashmir Bank, Borosil Renewables, Majesco, Ujaas Energy and Greenpanel Industries, hit their upper circuits on BSE.
More than 460 stocks, including Asian Paints, HCL Tech, Infosys, Mahindra & Mahindra, Maruti Suzuki, Sun Pharma, TCS, Tech Mahindra and UltraTech Cement, hit their 52-week highs.
Sensex gainers & losers
Market update:
Indian equities were trading with strong gains in the afternoon of January 8, with benchmarks the Sensex jumping over 500 points and Nifty surpassing 14,300 mark.
Market benchmarks Sensex and Nifty hit their fresh record highs of 48,629.12 and 14,302.10, respectively.
The rally in the market was broad-based as midcap and smallcap indices rose in sync with the benchmarks, both clocking gains of over a percent each.
The BSE Midcap hit a fresh high of 19,161.20, while the smallcap index hit an intraday high of 18,984.69. The smallcap index is about 1,200 points below its all-time high of 20,183.45, which it hit on January 15, 2018.
More than 450 stocks, including Mahindra & Mahindra, Sun Pharma, Tech Mahindra and UltraTech Cement, hit their 52-week highs on BSE.
At 1435 hours, the Sensex was 532 points, or 1.11 percent, up at 48,625.60 and the Nifty was 159 points, or 1.13 percent, up at 14,296.55.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities:
Gold prices traded down with COMEX spot gold prices fell below USD 1,890 per ounce on Friday losing more than 1 percent. Gold February future contract at MCX were trading down to Rs 50,242 per 10 grams with fall in COMEX prices. We expect gold prices to trade down with COMEX gold resistance at USD 1,910, support at USD 1,860. MCX Gold February support lies at Rs 49,700 with resistance at Rs 50,400.
Shalby Q3
: Consolidated net profit at Rs 16.8 crore against Rs 8.1 crore (YoY). Consolidated revenue was up 9.1 percent at Rs 131.7 crore against Rs 120.7 crore (YoY). Consolidated EBITDA was up 41.5 percent at Rs 30.7 crore against Rs 21.7 crore (YoY). Consolidated EBITDA margin stood at 23.3 percent against 18 percent (YoY).
December MF data
: Net equity outflow at Rs 13,121 crore against Rs 13,003 crore outflow (MoM). Liquid fund inflow at Rs 5,102 crore against Rs 8,415.2 crore outflow (MoM).ETF inflow at Rs 6,832 crore against Rs 641 crore inflow (MoM). Credit risk outflow at Rs 190.4 crore against Rs 15.4 crore outflow (MoM). Corp bond fund inflow at Rs 8,610 crore against Rs 11,093 crore inflow (MoM). Total assets under management at Rs 31.02 lakh crore against Rs 30 lakh crore (MoM). Hybrid fund outflow at Rs 5,932 crore against Rs 5,249.2 crore outflow (MoM). Total debt scheme inflow at Rs 13,863 crore against Rs 44,984 lakh crore inflow (MoM).
JB Chemicals gets US FDA nod
: The company received US FDA nod for Loratadine Tablets for over-the-counter use. It expects to commercialise the product in Q1FY22. Loratadine tablets are used to treat allergic rhinitis caused by pollen and upper respiratory tract allergy.
Nifty Pharma Index added 1 percent led by the Sun Pharma, Biocon, Torrent Pharma:
Jefferies on ICICI Bank
Foreign research house Jefferies maintained buy rating with a target at Rs 670 per share.
The bank getting into steady growth & compounding band. The initiatives to derisk loans have held it in good stead.
It has narrowed gap with HDFC Bank and can grow normalised profits by 17-20%. The uptick in CASA growth is a key and at current valuation, it offers best risk-reward in sector, reported CNBC-TV18.
Himatsingka Seide partners with The Walt Disney Company
Company announced its new licensing agreement with The Walt Disney Company for the European region. The license will give Himatsingka the rights to design, develop, manufacture and distribute a broad range of home textile products inspired by Disney's vast archives and characters from all its franchises including Disney, Marvel, Pixar and Lucas.
BSE Oil & Gas sector gained 1 percent led by the Petronet LNG, BPCL, Indraprastha Gas
Steel Strips Wheels bags order
Steel Strips Wheels confirms export orders of over 93,000 wheels to be executed in the month of Jan, Feb & March 21 from its Chennai plant.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Formal certification of Biden presidency and Trump promising smooth transition of power have further pushed US markets higher. Even though this might embolden our bulls too, there are some areas of concern. FII inflows are steadily declining and low- grade stocks are touching record highs. Irrational retail investor enthusiasm for 'cats & dogs' is an indication for caution. This is not the time for exuberance. Investors can use the present excessive optimism to sell poor quality stocks in the portfolio.
Market Updates
Benchmark indices extended the gains and trading at the day's high level.
At 12:19 IST, the Sensex was up 481.06 points or 1.00% at 48,574.38, and the Nifty was up 153.10 points or 1.08% at 14,290.50. About 1757 shares have advanced, 918 shares declined, and 108 shares are unchanged.
Aditya Puri joins as advisor to Strides Group
Strides Pharma Science announced that Aditya Puri joins the Strides Group as an Advisor and also will be a Director of its associate Company, Stelis Biopharma.
Hareesh V, Research Head Commodities at Geojit Financial Services
Hopes of additional fiscal stimulus measures from the new US administration, a multi-year weak US currency and an increase in new virus cases continue to support the yellow metal.
Meanwhile, investors remained cautious ahead of the key US non-farm payroll data scheduled later the day.
US trade deficit rises to more than 14-year high
The United States' trade deficit surged to its highest level in more than 14 years in November as businesses boosted imports to replenish inventories, offsetting a rise in exports.
The Commerce Department said on Thursday the trade gap widened 8.0% to $68.1 billion in November, the highest level since August 2006. The deficit in October was unrevised at $63.1 billion. Economists polled by Reuters had forecast the trade shortfall increasing to $65.2 billion in November.
Rupee Updates
Indian rupee erased early losses and trading flat at 73.32 per dollar, amid buying witnessing in the domestic equity market.It opened lower at 73.39 per dollar against Thursday's close of 73.32.
RBI cancels certificate of registration of three NBFCs
The Reserve Bank of India (RBI) on January 7 cancelled the certificate of registration of three non-banking finance companies (NBFCs). These are Uttar Pradesh-based Abhinav Hire Purchase Limited, Gurgaon-based Jupiter Management Services Private Limited and Assam-based N.E Leasing and Finance Pvt Ltd. “As such, the above companies shall not transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934,” the RBI said.
Six other NBFCS surrendered their certificate of registration, the RBI said. These include Raghukul Trading Private Limited, Divya Tie-Up Private Limited, Girnar Investment Limited, Choice International Limited, Devyani Infrastructure and Credits Private Limited and J.K. Builders and Property Developers Limited.
Nifty IT index rose 2 percent led by the L&T Infotech, Tech Mahindra, Wipro
OM Infra bags order
Om Infra, (formerly known as OM METALS INFRAPROJECTS LIMITED) in a joint venture, is L1 (Lowest) in competitive bidding in Shahpurkandi power house project worth value approximately Rs 621 crore tender for the construction of two power houses, their appurtenant works an part of Hydel Channel of Shahpurkandi Dam Project on EPC mode from Water Resource Department, Government of Punjab.
Sensex is up 434.97 points or 0.9 percent at 48528.29, and the Nifty added 140.20 points or 0.99 percent at 14277.60.
Yash Gupta Equity Research Associate, Angel Broking
: Biocon announced that the Biocon Biologics, a subsidiary of the Company, and Beta Oryx, a wholly owned subsidiary of ADQ have executed a Share Subscription Agreement and the Company, BBL, existing investors of BBL and the Investor have executed a Shareholders’ Agreement. The minority stake has been sold at valuations of USD 4.17 billion, This valuation of Biocon biologics is in line with the valuation of market reports. We have a neutral outlook on Biocon.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices ended lower on January 7 as the dollar recovered from two-year lows. Domestic gold and silver ended higher, bucking the weak overseas trend.The higher yields are also pulling some flight-to-safety money out of the bullion market, though the prospect of further fiscal stimulus under a Democratic administration capped losses.
Domestic bullion could start flat to marginally lower on January 8, tracking international prices.Technically, MCX February gold can give a gap down opening, tracking the global market. A breakdown below 50,800 can see a sideways to marginal downside momentum up 50,500-50,250 levels. Resistance is at 51,050-51,300 levels.On MCX, March silver could hold support near 69,000 from where a bounce can be expected up to 70,600-71,200 levels. Support is at 69,500-68,700 levels.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The index faces resistance at the 14250 levels. If we can consistently trade above that price point we should target 14350-14400 as the next target. The market has a good support at the 13900-13950 zone.
Rupee Opens
Indian rupee opened lower at 73.39 per dollar on Friday against Thursday's close of 73.32, amid buying witnessing in the domestic equity market.On January 7, the rupee ended at 73.32 per dollar versus previous close of 73.10.
Nifty Auto Index up 1 percent supported by the Eicher Motors, Tata Motors, Ashok Leyland:
ICICIdirect:
Ahead of the weekly expiry and narrow trading range for the week, the USDINR pair moved higher. However, supply could be seen above 73.5 levels due to writing in OTM strike Calls.
The dollar-rupee January contract on the NSE was at Rs 73.55 in the last session. The open interest fell 1.67% of the January series contracts.
Toll collection likely to grow 15% in FY22: ICRA
Toll collections are likely to grow 14-15 percent in 2021-22, rating agency ICRA said on Thursday maintaining stable outlook for the Indian road sector. Toll collections witnessed a marked improvement on the back of increased movement of both passenger and commercial vehicles, which has picked up significantly over the last three months, thereby surpassing the pre-COVID-19 levels, it said.
"In FY2022, the traffic is expected to increase by 5 per cent and toll rates (WPI linked) by 3-4 percent resulting in an overall increase in toll collections by 14-15 percent on a low base in FY2021 (given the impact of toll suspension in first 20 days of April 2020)," ICRA said in a statement.
Follow our LIVE blog for the latest updates on the novel coronavirus pandemic and its impact
TCS to announce Q3 results today
Tata Consultancy Services is expected to report its third quarter results today, January 8. The country's largest IT services exporter is expected to report strong revenue growth of more than 2.5 percent in constant currency quarter-on-quarter (QoQ) and over 3 percent growth QoQ in dollar revenue led by large deal wins in Q3 FY21. Although margin may get impacted by wage revision. Read More
Blackstone-backed auto parts firm Sona Comstar targets Rs 4,000-crore IPO
American private equity giant Blackstone is preparing to launch an initial public offering (IPO) for an auto parts firm it controls, the second potential big-ticket listing of an enterprise from its India portfolio in 2021.
Gurugram-based global auto component maker Sona Comstar, which is backed by Blackstone and Sunjay Kapur-led Sona Group, has launched preliminary talks with bankers and is looking to raise Rs 3,500 crore to Rs 4,000 crore by listing on the exchanges, people familiar with the matter told Moneycontrol.
Gainers and Losers on the BSE Sensex:
Market Opens
: Indian indices opened on January 8 with Nifty above 14200 on the back of positive global cues.
At 09:16 IST, the Sensex was up 333.85 points or 0.69% at 48,427.17, and the Nifty wasup 97 points or 0.69% at 14,234.40. About 1204 shares have advanced, 201 shares declined, and 41 shares are unchanged.
ICICIdirect:
Indian markets are likely to see a gap up opening tracking strong global cues amid hopes of additional fiscal stimulus in the US and optimism about an economic recovery. However, global news flows and sector specific developments will be key monitorables. US markets ended higher post certification of the US President-elect’s victory and release of better-than-expected macroeconomic data.
Market at pre-open
: Benchmark indices are trading higher in the pre-opening session.
At 09:01 IST, the Sensex was up 319.46 points or 0.66% at 48,412.78, and the Nifty wasd up 172.90 points or 1.22% at 14,310.30.
Crude Updates
Oil prices edged higher on Friday, hovering near 11-month highs hit the previous day, as Saudi Arabia's pledge to make voluntary cuts to its output continued to buoy the mood in the market though worries over slower fuel demand capped gains.
Bitcoin falls 5% to $37,507 on Bitstamp exchange:
Bitcoin fell more than 5 percent on Friday, a day after topping $40,000 for the first time. The world's most popular digital currency fell as low as $36,750 on Bitstamp exchange, after reaching an all-time high of $40,402.46 in the previous session.
FII Trading Activity:
DII Trading Activity:
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
Going ahead, the Global cues will be watched closely for the further trend in the market. The December quarterly results will kick start with TCS announcing its Q3 numbers on 8th Jan while the Union Government will present the much anticipated Budget on 1st Feb. As the long term market structure remains positive, we would advise investors to adopt Buying on Dips strategy to accumulate quality stocks.
