Taking Stock | Sensex down 168 points, Nifty below 17,900; IT, PSU banks gain
Among sectors, the Nifty PSU bank index added 1.5 percent, IT a percent and the energy index closed 0.6 percent higher.... Read More
Rupak De, Senior Technical Analyst at LKP Securities
Nifty failed to sustain above 18,000 and slipped lower before closing around 17,900. A "dark cloud cover"-like pattern has formed on the daily chart, suggesting a near-term weakness.
Support on the lower end is visible at 17,850/17,750. Below 17,750, Nifty may witness a meaningful correction. On the higher end, resistance is visible at 18,000–18,100.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
The sluggish mood continued as markets moved in a narrow range with a negative bias. Investors are taking a cautious stance as the global macroeconomic scenario remains bleak while FIIs continued to be sellers in domestic equities in the current month, thus dampening the market sentiment.
Technically, the market is consolidating within the 17,850 to 18,050 price range. On daily charts, the Nifty has formed a bearish candle near the 100-day SMA which is broadly negative.
We are of the view that 17,800 would act as a sacrosanct support zone for the traders, and a fresh round of selling is possible only after the dismissal of 17,800. Below the same, the index could slip till 17,700-17,650. On the flip side, 18,000 would be the trend reversal level for the bulls and above the same the index could move up till 18,100-18,135.
Ajit Mishra, VP - Technical Research, Religare Broking
Markets started the week on a subdued note and lost nearly half a percent amid mixed cues. The initial gains fizzled out in no time and Nifty traded with a negative bias till the end. Meanwhile, a mixed trend on the sectoral front kept the participants busy wherein PSU banking and IT edged higher, while metal and auto settled in the red.
The broader indices too traded in line with the benchmark and closed marginally lower.
Markets have been facing selling pressure on the rise, showing uncertainty among the participants despite favorable cues. We feel it’s prudent to limit positions in the prevailing scenario and wait for a decisive breakout from the 17,800-18,100 zone in Nifty.
Vinod Nair, Head of Research at Geojit Financial Services
In the event of subdued Q3 results, soft budget expectations and cliffing of global rates the market is contemplating with high volatility as these scenarios envelop the future trend.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty has been witnessing short term consolidation for the last few weeks. In terms of the price patterns, it has formed a triangle on the daily chart. Towards the end of the last week, the Nifty had formed a base near the lower end of the pattern.
Consequently, the index took a leap on the upside & opened gap up on January 16. However, the index stumbled near the upper end of the pattern & stayed back into the pattern.
Till the time the index trades above 17,800 on a closing basis, the pattern is eventually expected to break out on the upside. The Nifty will be set for a larger bounce, once it crosses the near term barrier of 18,050.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Decline in WPI inflation to 4.95% and CPI inflation to 5.72% in December shows a steady downtrend in price level. The significance of this downtrend is that it will enable the MPC to pause after one more, say, 25 bp rate hike in February.
Therefore, higher rates will not impact the growth recovery underway in the economy now.
Rupee Close:
Indian rupee closed 28 paise lower at 81.61 per dollar on Monday against previous close of 81.33.
Market Close:
Benchmark indices ended lower in the second consecutive session on January 16.
At Close, the Sensex was down 168.21 points or 0.28% at 60,092.97, and the Nifty was down 61.80 points or 0.34% at 17,894.80. About 1658 shares have advanced, 1844 shares declined, and 169 shares are unchanged.
Adani Enterprises, Axis Bank, Hindalco Industries, JSW Steel and TCS were among the top losers on the Nifty, while gainers were Tech Mahindra, Infosys, HCL Technologies, Wipro and Hero MotoCorp.
Among sectors, except IT, power and PSU bank, all other sectoral indices ended in the red.
BSE midcap and smallcap indices ended on flat note.
HG Infra Engineering gets letter of acceptance from DMRC
HG Infra Engineering has received the letter of acceptance from Delhi Metro Rail Corporation (DMRC) for the project worth around Rs 400 crore in Delhi. The construction period is 24 months.
HG Infra Engineering Ltd. was quoting at Rs 656.30, down Rs 10.85, or 1.63 percent.
Roto Pumps bags order from Grasim Industries
Roto Pumps has received an order for supply of screw pumps and spare parts amounting to Rs 14 crore from Grasim Industries.
Roto Pumps has touched 52-week high of Rs 538.50 and quoting at Rs 526.15, up Rs 18.00, or 3.54 percent on the BSE.
Swan Energy buys 3% stake in Veritas India
Swan Energy has bought 8.15 lakh equity shares or 3% stake in Veritas (India) via open market transactions, at an average price of Rs 243.70 per share. However, promoter Niti Nitinkumar Didwania was the seller in this deal.
Veritas touched a 52-week high of Rs 251.05 and quoting at Rs 251.05, up Rs 4.90, or 1.99 percent on the BSE.
Swan Energy was quoting at Rs 323, down Rs 3.95, or 1.21 percent on the BSE.
Bharat Agri Fert & Realty spurts on stock split news
Bharat Agri Fert & Realty will consider sub-division of equity share from the face value of Rs 10 per share to Re 1 per share on February 1.
Goldman Sachs View On L&T Finance Holdings
-Buy rating, target at Rs 108 per share
-Strong operational beat; earnings quality improves across board
-Reported a strong quarter driven by higher-than-expected NII
-Believe earnings will provide confidence that company is on path of improving profits
-RoAs & RoEs likely to touch 2 percent/10.6 percent by FY24
JPMorgan View On Reliance Industries
-Overweight call, target cut to Rs 3,015 from Rs 3,065 per share
-Assume no tariff hike in FY24, driving FY24-25 EBITDA estimates lower by 2.5 percent/4.2 percent
-Overall, still see a healthy earnings environment for RIL
-See O2C & E&P business benefitting from China reopening & higher volumes
-Company’s recent underperformance is more macro driven
-FII moves from India to China kept company under pressure recently
-Company is trading at the lower end of its recent trading range
Reliance Industries was quoting at Rs 2,438.60, down Rs 28.75, or 1.17 percent on the BSE.
All large-cap, blue-chip stocks to shift to T+1 settlement cycle from Jan 27
The T+1 settlement system will give investors the option to trade more by rolling the funds and shares faster. The settlement cycle is said to be completed only when the buyer receives the shares and the seller receives the money.... Read More
Market at 3 PM
The Sensex was down 196.70 points or 0.33% at 60064.48, and the Nifty was down 69.90 points or 0.39% at 17886.70. About 1512 shares have advanced, 1823 shares declined, and 162 shares are unchanged.
RattanIndia Enterprises gains on completing 100% acquisition of Revolt Motors
RattanIndia Enterprises has completed acquisition of 100% shareholding in the electric motorcycles company Revolt Motors. Revolt Motors is the highest selling electric bike in the country with its manufacturing facility in Manesar, Haryana.
It has expanded its footprint pan-India with 30 dealerships spread across the country.
Morgan Stanley keeps underweight rating on MCX India:
-Underweight rating, target at Rs 1,250 per share
-SEBI allowing exchanges to launch multiple contracts on same commodity
-Could drive upside in value traded via potential revival of mini contracts in base metals & crude
Multi Commodity Exchange of India was quoting at Rs 1,590.75, down Rs 13.40, or 0.84 percent on the BSE.
Here are the stocks that are locked on the upper circuit or have only buyers; click to view more
Jefferies view on Wipro
Broking firm Jefferies has kept the ‘underperform’ rating on the stock with a target at Rs 355 per share.
The Q3 was beat estimates due to a sharp rise in margin.
The broking house has lowered the revenue estimates by 1-2 percent but raise EPS estimates by 2-4 percent and expect company to deliver 11 percent EPS CAGR over FY23-25.
The slower than expected growth should drive further de-rating, reported CNBC-TV18.
Wipro was quoting at Rs 397.50, up Rs 3.85, or 0.98 percent.
European Markets Updates
December Trade Data
India December exports down 12.2 percent at $34.5 billion against $39.3 billion YoY. India December imports down 3.5 percent at $58.24 billion against $60.3 billion YoY. India December trade deficit up 12.8 percent at $23.76 billion against $21.10 billion YoY. Exports up 7.8 percent, imports up 4.2 percent and trade deficit down 0.5 percent MoM.
KPI Green Energy signs long-term power purchase agreement for sale of 6.30 MW solar power to IPP companies
GPT Infra bags order worth Rs 216 crore
GPT Infra bags order worth Rs 216 crore from Maharashtra Rail Infrastructure Development Corporation Limited, Mumbai including construction of proposed extensions of Ghatkopar Cable Stayed Road Over Bridge connecting LBS Road junction and Eastern Expressway Junction in Mumbai
Market update at 2 PM
Sensex is down 247.20 points or 0.41% at 60013.98, and the Nifty shed 88.90 points or 0.50% at 17867.70.
Som Distilleries to consider raising funds via rights issue on Jan 24
A meeting of the Board of Directors of Som Distilleries is scheduled to be held on January 24, 2023 to consider and approve the Unaudited Financial Results (Standalone and Consolidated) for the quarter and nine months ended December 31, 2022
The board also consider, discuss and decide, the terms and conditions and other related matters in connection with the proposed raising of funds by way of rights issue of equity shares.
Just Dial Q3 profit jumps 288.4% YoY
Just Dial has reported a 288.4% year-on-year increase in consolidated profit at Rs 75.32 crore for the quarter December FY23, driven by strong operating performance and topline.
Revenue from operations grew by 39% to Rs 221.4 crore for the quarter YoY. For nine months ended December FY23, profit grew by 62.2% YoY to Rs 79.1 crore and revenue increased by 27.5% to Rs 612.2 crore compared to year-ago period.
Investec view on Wipro
Research firm has upgraded the stock to hold and also raised the target price to Rs 405 per share.
The reported revenue was below our estimates, said Investec.
The weakness in growth was driven by furloughs & cuts in discretionary spends, while management pointed out weakness was driven by longer tenures.
The margin was better than expectations, led by non-recurrence of restructuring costs.
The research firm believes that growth in FY24e is likely lower than FY23e, reported CNBC-TV18.
Wipro was quoting at Rs 398.30, up Rs 4.65, or 1.18 percent on the BSE.
Whirlpool's appoints Narasimhan Eswar as Additional Director and Managing Director
Vishal Bhola has resigned as Managing Director of Whirlpool of India, to pursue other interests. He will be relieved from the services of the company as Managing Director with effect from April 4, 2023.
The Board has appointed Narasimhan Eswar as Additional Director and Managing Director with effect from same date for a period of 5 years.
Delhivery completes acquisition of Algorhythm Tech
Delhivery has completed the acquisition of Algorhythm Tech. With this, Algorhythm has become a wholly owned subsidiary of the company w.e.f. January 13, 2023.
Delhivery was quoting at Rs 317.45, up Rs 7.30, or 2.35 percent on the BSE.
NCLT approves merger of Mahindra Electric Mobility with M&M
The National Company Law Tribunal has approved the merger of Mahindra Electric Mobility with Mahindra & Mahindra. The appointed date of the scheme is April 1, 2021.
Mahindra and Mahindra was quoting at Rs 1,313, down Rs 14.90, or 1.12 percent.
Tata Motors files Form 25 for termination of its American Depositary Share program
Tata Motors has filed Form 25 with the Securities and Exchange Commission (SEC), USA, for termination of its American Depositary Share Program. SEC Form 25 is the document filed by a company to delist its securities.
Tata Motors was quoting at Rs 412.40, up Rs 0.95, or 0.23 percent.
Lupin gets tentative USFDA approval for Dolutegravir & Rilpivirine tablets
Lupin has received tentative approval from the United States Food and Drug Administration (FDA) for its Abbreviated New Drug Application (ANDA), Dolutegravir and Rilpivirine Tablets, 50 mg/25 mg, to market a generic equivalent of Juluca Tablets, 50 mg/25 mg of ViiV Healthcare Company.
BSE Power index added 0.6 percent supported by Adani Green, JSW Energy, Power Grid
Nomura view on Wipro
The brokerage firm has maintained the ‘neutral’ rating on the stock with a target at Rs 425 per share.
According to Nomura, the growth hurt by furloughs & lower discretionary spends.
The increasing deal tenures leading to delay in translation to immediate growth, while margin recovery was strong.
The total bookings TCV were at all-time high with healthy pipeline; shows optimism for CY23, reported CNBC-TV18.
Wipro was quoting at Rs 399.10, up Rs 5.45, or 1.38 percent on the BSE.
Century Textiles board approves raising up to Rs 400 crore via NCDs
Century Textiles' board of directors at its meeting held today has approved raising of funds upto Rs 400 crore in one or more tranches by issue of Listed, Rated, Unsecured, Redeemable, Non-Convertible Debentures of the Company on private placement basis within the borrowing limits approved by the shareholders subject to such statutory and regulatory approvals as may be necessary under applicable laws.
Century Textiles and Industries was quoting at Rs 710.00, down Rs 5.55, or 0.78 percent.
Kotak Institutional Equities view on HDFC Bank
Research firm has kept ‘buy’ rating on the stock with a target at Rs 1,800 per share.
The solid earnings led by growth in operating profit & decline in provisions, while increase in branches & headcount to sustain the business momentum.
However, merger continues to be a near-term headwind, reported CNBC-TV18.
HDFC Bank was quoting at Rs 1,595.05, down Rs 5.80, or 0.36 percent on the BSE.
Bank of Maharashtra Q3
Bank of Maharashtra has reported December 2022 net profit at Rs 775 crore versus Rs 324.6 crore and net interest income (NII) was up 29.6% at Rs 1979.6 crore versus Rs 1,527 crore, YoY.
Buzzing
L&T Finance Holdings hit a fresh 52-week high in the morning on January 16 after the company reported a 39 percent year-on-year (YoY) jump in consolidated profit at Rs 454 crore for the quarter ended December 31, 2022. Net interest income increased 23.5 percent year-on-year to Rs 1,931.8 crore in the said quarter.
The company's net interest margin (NIM) plus fees came at 8.80 percent, up 70 basis points (bps) YoY due to changing portfolio mix towards retail, the firm said on January 13.
Market at 1 PM
The Sensex was down 171.56 points or 0.28% at 60089.62, and the Nifty was down 69.80 points or 0.39% at 17886.80. About 1584 shares have advanced, 1689 shares declined, and 174 shares are unchanged.
In last hour: Put unwinding seen at 18,000 level while position now shifting to 17,900 as traders turn more bearish.
Elara Capital View on Maruti Suzuki
-Maintain 'Buy' with a Target Price of Rs 11,400
-Expect company's market share to improve to ~45% in FY24E and ~46% in FY25E from 43.5% in FY22, led by launches in the SUV space
-Currently assume Baleno volumes and Fronx net additions (including cannibalization with Baleno) of 6-7k per month in FY24E and Jimny volumes of 4-5k per month.
Maruti Suzuki India was quoting at Rs 8,404.00, down Rs 48.65, or 0.58 percent.
CLSA view on Wipro
The research house has kept the ‘outperform’ rating on the stock with a target at Rs 450 per share.
The Q3 revenue growth was below estimates, while revemnue growth guidance indicates weakness may persistent in near term.
The order booking was strong and management commentary was upbeat on the medium-term outlook.
The company’s margin recovered strongly in Q3FY23 and with input costs easing, remain hopeful of expansion in FY24, reported CNBC-TV18.
Federal Bank Q3 earnings:
Net profit was up 54% at Rs 803.6 crore versus Rs 521.7 crore and net interest income (NII) was up 27% at Rs 1,956 crore versus Rs 1,538.9 crore, YoY.
Federal Bank was quoting at Rs 139.45, up Rs 1.00, or 0.72 percent.
Nifty Auto index shed 0.7 percent dragged by Samvardhana Motherson International, Eicher Motors, TVS Motor Company
Waaree Renewable bags execution contract of a solar power project
Waaree Renewable Technologies has signed Letter of Award (LoA) with the construction company, for the execution of engineering, procurement, construction, and commissioning (EPCC) of a solar power project of 7 MWp DC capacity for their captive requirement along with three years of operation & maintenance work.
Waaree Renewable Technologies was quoting at Rs 497.00, up Rs 1.45, or 0.29 percent.
Mohit Talwar retires as managing director of Max Financial Services
After completing career spanning over 15 years with Max Group, Mohit Talwar retires as the Managing Director of Max Financial Services on January 14. Also he will cease to be a director on the board of the company.
Max Financial Services was quoting at Rs 798.15, down Rs 1.25, or 0.16 percent.
Bernstein view on HDFC Bank
Broking firm has kept ‘outperform’ rating on the stock with a target at Rs 2,200 per share.
The Q3FY23 was a clean beat with another show of deposits. The earnings growth driven by healthy credit growth, while NIM was unchanged.
The asset quality trends remained benign, while non-interest income saw significant improvement.
The biggest positive was continued growth in deposits & rise in branch count, reported CNBC-TV18.
