Ajit Mishra, VP - Research, Religare Broking:
Markets traded under pressure and lost nearly a percent, in continuation to the previous session’s fall. The benchmark opened flat amid weak global cues however bears regained control as the day progressed and pushed the index gradually lower.
Among the sectors, profit booking in IT, financials and FMCG sectors impacted sentiments. Consequently, the Nifty settled closer to 17,938; down by 0.96%. The broader markets showed some resilience and ended almost on a flat note.
Weak global cues like rising US bond yields and crude at record highs are taking a toll on markets across the globe including ours. Besides, there's nothing much to support from the domestic front as well. At the top of it, volatility, due to the earnings, is further adding to the participants’ worries. Amid all, we reiterate our positive view on markets and suggest utilising dips to add quality stocks. Nifty has next support at 17,800 and major around 17600 zone.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The market was unable to hold on to the 18000 level. It should now take support at the 17800-17850 zone. If the Nifty needs to turn, this is the juncture from where that is possible. If we break 17850, the index could slide further to 17650.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Overseas factors continued to weigh on domestic stocks as weak global markets coupled with concerns that a rate hike by the US Fed could be on the cards sooner-than-expected triggered wide-spread selling for the second straight session.
The Nifty breaking the important level of 18000 and closing below the same will be largely negative for the market. The index is likely to consolidate within the range of 17820 to 18050.
For the bulls, 17960 would be the key level to watch for, and above the same the index could rally up to 18000-18050 levels. On the flip side, dismissal of 17900 would trigger one more leg of correction up to 17850-17820 levels.
Mohit Nigam, Head - PMS, Hem Securities:
Benchmarks Indices started the session in red tracking weakness in global markets and ends their session via extended their losses with Nifty50 at 17,938 and Sensex at 60,099.
On the technical front, the key resistance level for Nifty50 is 18,300 and on the downside 17,700 can act as strong support. Key resistance and support levels for Bank Nifty are 38,500 and 37,500 respectively
S Hariharan, Head- Sales Trading, Emkay Global Financial Services:
A rise in crude oil prices to 7-year highs and continuing high inflation prints globally have driven global bond yields to near pre-covid levels, while US FOMC participants have indicated in separate interviews their intent to act decisively to bring inflation under control. As a result, risk assets have been under pressure this week, reflected in net selling of $800 mn by FIIs in Indian markets the last 5 sessions.
While results from large caps declared so far have been strong and meeting or beating expectations, price moves in reaction to results have been very weak and point to excessive pre-positioning and a high bar to beat priced-in expectations. Market attention would turn towards Budget expectations for Infrastructure and Housing sectors in the coming weeks as a major focus area of fiscal spends in the coming year. Energy and Metals names are expected to trade stronger, while Consumer Staples & Autos can give up some recent gains as a result of weak results for Oct_Dec quarter.
Emkay Global Financial Services:
SPOT USDINR pair continued with its recovery trade for the 4th consecutive session this week. The counter has managed to erase its recent losses from the lows of 73.76 levels seen during the last week. The U.S. Treasury yields hit fresh two-year highs which got investors worried about inflation and bracing for tighter U.S. monetary policy in the US Federal Reserve meet scheduled for the next week.
Also, crude oil prices hit their highest since 2014 amid an outage on a pipeline from Iraq to Turkey and global political tensions, stoking fears of inflation becoming more persistent and propping up the dollar, which hovered near one-week highs. We expect the current recovery in the pair to extend towards 74.95/75.20 levels during the coming weeks. Support on dips is seen around 74.40 on the spot.
Rahul Sharma, Co-owner, Equity 99:
The correction in markets continues for 2nd day as markets correct 1% post US bond yield hitting 2 years high. We see weakness in market for coming 2 weeks.
Investors are advised to keep strict stop losses and adopt buy on dips strategy. We expect the volatility to continue till the budget session. It is advised to not to over trade in current scenario.
For Nifty 17880 will act as immediate support on breaking which 17765 levels is possible. On upper side 17980 will act as strong resistance. Once this level is breached we might see 18075 levels and even 18200.
Vinod Nair, Head of Research at Geojit Financial Services:
Globally, risk sentiments took a blow as rising inflation resulting in elevated bond yield along with the on-going geopolitical tensions and surge in oil prices weighed on investor confidence.
This along with consistent FII selling forced the domestic market to trade in favour of bears for the second consecutive day. The UK's inflation rate rose to 5.4% in December from 5.1% in November owing to rising demand, surging energy costs and supply constraints.
Rupak De, Senior Technical Analyst at LKP Securities:
Weakness entered into the second day as Nifty slipped below the 18000 mark. Selling pressure during the day dragged the Nifty below 10 days exponential moving average for the first time since December last year.
Besides, two back to back significant red candles on the daily chart indicate weakness in the market which may extend over the near future. On the lower end support is visible at 17880, below which the index may dip towards 17750. Resistance is pegged at 18050/18200.
Market Close
: Benchmark indices continued the selling on the second consecutive day on January 19 with Nifty below 18,000.
At close, the Sensex was down 656.04 points or 1.08% at 60,098.82, and the Nifty was down 174.60 points or 0.96% at 17,938.40. About 1432 shares have advanced, 1766 shares declined, and 72 shares are unchanged.
Asian Paints, Shree Cements, Infosys, Grasim Industries and HUL were the top Nifty losers, while gainers included ONGC, Tata Motors, SBI, Coal India and UPL.
Mixed trend saw on the sectoral front, with auto, metal, power and oil & gas indices ended in the green, while selling was seen in the bank, FMCG, IT, pharma and realty sectors. BSE midcap index fell 0.3 percent and smallcap index ended flat.
Nifty FMCG index fell 1 percent dragged by the HUL, Emami, Tata Consumer Products
Nifty FMCG index fell 1 percent dragged by the HUL, Emami, Tata Consumer Products
AnandRathi on Sonata Software
Sonata’s IT business is likely to clock a 17% (organic) CAGR over FY22-FY24 and may see segment margins of ~25.6% by FY24 (FY22e 26.4%) on global delivery build out and higher wage hikes.
On the domestic front, it is likely to record a 21% CAGR, taking the consolidated FY24e EPS to Rs 50. The stock trades at 17x FY24e EPS (5.3% FCF yield), which we find attractive. The risk is supply-side disruptions in the next few quarters. Rating Buy, target Rs 1050.
JSW Energy Q3 consolidated net profit up at Rs 324 crore
JSW Energy’s Q3 consolidated net profit was up at Rs 324 crore versus Rs 123.5 crore and revenue was up 17.1% at Rs 1893.5 crore versus Rs 1608.9 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 31% at Rs 791.1 crore versus Rs 603 crore and margin was at 41.8% versus 37.5%, YoY
JSW Energy was quoting at Rs 315.95, up Rs 12.15, or 4.00 percent on the BSE.
BSE Oil & Gas index rose 0.5 percent supported by the ONGC, ail India, Gujarat Gas
Tata Motors forays into CNG segment
Tata Motors on Wednesday forayed into the CNG segment with the launch of Tiago and Tigor trims, priced between Rs 6.09 lakh and Rs 8.41 lakh respectively (ex-showroom Delhi).
The Tiago iCNG range is priced between Rs 6.09 lakh and Rs 7.64 lakh while the three variants of Tigor iCNG are tagged at Rs 7.69 lakh, Rs 8.29 lakh and Rs 8.41 lakh respectively.
With the launch, the homegrown auto major plans to strengthen its position in the CNG market which has been growing at a fast pace.
Tata Motors was quoting at Rs 520.75, up Rs 9.80, or 1.92 percent on the BSE.
Landmark Cars files DRHP with SEBI for Rs 762 crore IPO
Ahmedabad-based Landmark Cars Ltd, a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault has filed its draft red herring prospectus (DRHP) for Rs 762 crore initial public offering (IPO) with Sebi.
According to the draft papers, the issue consists of a fresh issue of equity shares aggregating to Rs 150 crore and an offer for sale (OFS) of up to Rs 612 crore.
The Offer for Sale comprises up to Rs 400 crore by TPG Growth II SF PTE Ltd, up to Rs 62 crore by Sanjay Karsandas Thakker HUF, up to Rs 120 crore by Aastha Limited and up to Rs 30 crore by Garima Misra. The offer also includes a reservation for subscription by eligible employees.
The proceeds from its fresh issuance worth Rs 120 crore will be utilised for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company and general corporate purposes.
Cabinet Meeting Outcome |
Cabinet has approved infusion of Rs 1,500 crore in Indian Renewable Energy Development Agency.
BSE Oil &Gas index rose 0.5 percent supported by the ONGC, ail India, Gujarat Gas
Cabinet approves Rs 1000 crore for waiver of SBI's 'interest on interest'
The Union Cabinet on January 19 approved around Rs 1000 crore for the State Bank of India for the waiver of “interest on interest”, CNBC Awaaz reported.
The Cabinet will reportedly be holding a press conference to announce the same at 3 pm today.
State Bank of India was quoting at Rs 514.55, up Rs 7.90, or 1.56 percent on the BSE.
Market at 3 PM
Benchmark indices were trading near the day's low level with Nifty below 18000 dragged by bank, FMCG, IT, pharma, FMCG, realty sectors.
The Sensex was down 611.85 points or 1.01% at 60143.01, and the Nifty was down 167 points or 0.92% at 17946. About 1402 shares have advanced, 1780 shares declined, and 77 shares are unchanged.
CARE Ratings on Hester Biosciences
Sterlite Technologies Q3 results
Sterlite Technologies has posted net loss at Rs 137.1 crore in Q3FY22 against profit of Rs 86.6 crore and revenue was up 3.1% at Rs 1,355.5 crore versus Rs 1,314.4 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) loss was at Rs 50.7 crore against EBITDA of Rs 230.1 crore.
Sterlite Technologies was quoting at Rs 254.25, down Rs 15.45, or 5.73 percent on the BSE.
Indian gaming stocks zoom on Microsoft-Activision deal but analysts are not excited
The share prices of online gaming companies skyrocketed in India on January 19 in line with their peers abroad a day after tech giant Microsoft said it was acquiring "Candy Crush"-maker Activision Blizzard in a record-breaking deal.
Shares of ace investor Rakesh Jhunjhunwal-backed Nazara Technologies hit their 5 percent upper circuit limit of Rs 2,494.25 on the NSE, while those of OnMobile Global soared 15.5 percent to Rs 148.85.
Analysts, however, don’t see the rally lasting.
European Markets Updates
AGS Transact Technologies IPO updates
The initial public offering of AGS Transact Technologies has received bids for 2.12 crore equity shares against IPO size of 2.86 crore equity shares, a 74 percent subscription on January 19, so far on the first day of bidding. The offer will close on January 21, 2022.
Retail investors have put in bids for 1.06 times of the reserved portion, while qualified institutional buyers are yet to put in their bids. Non-institutional investors have put in bids for 61.01 lakh shares or 99 percent against the allocated numbers of 61,44,578 shares.
Market update at 2 PM: Sensex is down 675.38 points or 1.11% at 60079.48, and the Nifty shed 185.50 points or 1.02% at 17927.50.
Saregama Q3 earnings
Saregama India has posted 37.4 percent jump in its Q3 net profit at Rs 43.4 crore versus Rs 31.6 crore, YoY.
Revenue of the company was up 12.3% at Rs 150.3 crore versus Rs 134 crore.
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 35.9 percent at Rs 54.4 crore versus Rs 40 crore and margin was up at 36.2 percent versus 29.9 percent, YoY.
Saregama India was quoting at Rs 5,340.00, up Rs 5.85, or 0.11 percent on the BSE.
Hitachi Energy India wins orders exceeding Rs 160 crore
Hitachi Energy India has won orders exceeding Rs 160 crore for its key electric components to support the electrification of the country’s rail routes, company said in release.
Hitachi Energy India was quoting at Rs 2,693.70, up Rs 36.20, or 1.36 percent on the BSE.
Coal India supplies under e-auction log 31% growth during Apr-Dec'21
Coal India's actual coal despatch under the five e-auction windows at 77.4 million tonnes (MTs) jumped ahead by 31% during April-December'21 compared to 59 MTs corresponding period year ago, company said in its press release.
Special forward e-auction, the exclusive window meant for power sector, accounted for nearly 28 MTs of the total despatched quantity, it added.
Coal India was quoting at Rs 162.85, up Rs 2.05, or 1.27 percent on the BSE.
Nifty Bank index fell 0.5 percent dragged by the Kotak Mahindra Bank, ICICI Bank, SBI
Market at 1 PM
Benchmark indices extended the losses and trading at day's low with Nifty around 17900.
The Sensex was down 750.81 points or 1.24% at 60004.05, and the Nifty was down 211 points or 1.16% at 17902. About 1142 shares have advanced, 1993 shares declined, and 77 shares are unchanged.
Buzzing
Just Dial has reported lower consolidated profit at Rs 19.39 crore in Q3FY22 against Rs 49.93 crore in Q3FY21, revenue fell to Rs 158.89 crore from Rs 169.54 crore YoY.
Just Dial was quoting at Rs 811.25, down Rs 28.30, or 3.37 percent on the BSE.
BSE Midcap index fell 0.5 percent dragged by the ICICI Securities, Mphasis, Godrej Properties
Jubilant FoodWorks launches US Fried Chicken brand Popeyes in India
Jubilant FoodWorks has launched the iconic US Fried Chicken brand Popeyes in India, with the grand opening of its first restaurant in Bengaluru today.
Jubilant FoodWorks was quoting at Rs 3,735.45, down Rs 52.65, or 1.39 percent on the BSE.
Gold Updates
Gold prices fell on Wednesday towards previous session’s one-week low as the prospect of aggressive rate hikes by the U.S. Federal Reserve sent benchmark Treasury yields to two-year highs, reducing the appeal of non-yielding bullion.
Spot gold was down 0.2% at $1,810.90 per ounce, as of 0352 GMT, after falling to a one-week low of $1,805 an ounce on Tuesday. U.S. gold futures dipped 0.1% to $1,810.80.
Market at 12 PM
Benchmark indices erased some of the intraday losses but still trading lower with Nifty below 18000.
The Sensex was down 447.82 points or 0.74% at 60307.04, and the Nifty was down 121.20 points or 0.67% at 17991.80. About 1303 shares have advanced, 1804 shares declined, and 75 shares are unchanged.
JUST IN |
Cabinet briefing by Union Ministers Shri Anurag Singh Thakur at 3 at National Media Centre (NMC).
Cabinet had taken up a proposal for equity infusion on IREDA (Indian Renewable Energy Development Agency)
Mahindra & Mahindra and Hero Electric Vehicle Private Limited announced a strategic partnership
Mahindra & Mahindra and Hero Electric Vehicle Private Limited announced a strategic partnership in electric mobility.
Both companies will enter into a 5 year contract with scope to enhance the area of collaboration in future.
Over the contract period, the value of the transaction is expected to be in the range of Rs 140-150 crore.
Mahindra and Mahindra was quoting at Rs 892.20, up Rs 0.75, or 0.08 percent.
BSE Realty index shed 1 percent dragged by the Godrej Properties, Brigade Enterprises, Prestige Estate
Ashoka Buildcon bags order worth Rs 111.51 crore:
Ashoka Buildcon had submitted offer to Bailey Properties Private Limited in respect of the project viz. 'work of construction of Mall cum Multiplex, B2+B1+LG+G+4, near Pillar 64, Bailey Road, Patna on item rate basis' (Project) to be completed within 15 months.
The company has been awarded the project with the cost of Rs 111.51 Crore excluding GST.
Ashoka Buildcon was quoting at Rs 100.15, down Rs 1.80, or 1.77 percent on the BSE.
AGS Transact Technologies IPO updates
The initial public offering of AGS Transact Technologies has received bids for 94.82 lakh equity shares against IPO size of 2.86 crore equity shares, a 33 percent subscription on January 19, so far on the first day of bidding. The offer will close on January 21, 2022.
Retail investors have put in bids for 66 percent shares of the reserved portion, while qualified institutional buyers are yet to put in their bids. Non-institutional investors have put in bids for 39,525 share or 1 percent against the allocated numbers of 61,44,578 shares.
Indian Energy Exchange divest 4.93% equity stake to Indian Oil:
India Energy Exchange on Wednesday announced divesting 4.93 per cent equity stake to India’s largest oil company Indian Oil Corporation.
IEX chairman and managing director SN Goel said that the move augurs well in the joint endeavour to build the gas market in India and is aligned with the government’s vision of accelerating the share of gas in the energy mix to 15 per cent by 2030.
"We strongly believe that IndianOil will bring huge value through guidance and support to our new initiative of IGX. IndianOil … their huge expertise in the gas sector will help add new products for Indian markets," Goel said in a statement.
Market update at 11 AM:
Sensex is down 473.81 points or 0.78% at 60281.05, and the Nifty shed 131.70 points or 0.73% at 17981.30. Asian Paints, Adani Ports and UltraTech Cement are the top losers while Bajaj Finance, Vedanta and Tata Elxsi are the most active stocks.
Among the sectors, IT and realty are down 0.5-1 percent each while the midcap and smallcap indices are also trading in the red.
Gaurav Garg, Head of Research, Capitalvia Global Research
Markets are anticipated to have a shaky start due to sluggish global commerce. The investor mood is also being weighed down by high oil prices and continued FII outflows. Traders would be disturbed by a private research claiming that India's third wave of the COVID-19 epidemic is expected to peak on January 23, with roughly 7.2 lakh cases per day.
There will be some trepidation, as the SBI Business Activity Index fell to 101 on January 17 from 109 the previous week. Our research suggests that the levels of 18000 may act as important support levels in the market. If the market sustained above the levels of 18000, we can expect the market to trade in the range of 18000-18300.
BSE Healthcare index fell nearly 1 percent dragged by the Syncom Formulations, Dr. Lal PathLabs, Apollo Hospitals Enterprise
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
We are very close to the psychological support level of 18000; ideally, the Nifty should close above this for the positive sentiment to remain intact. A break of this could take us down to 17750-17800 which is the next level of support.
Buzzing
L&T Technology Services share price fell 7 percent on January 19 - a day after the company reported its December quarter earnings.
L&T Technology Services has reported an 8 percent increase in net profit to Rs 248.8 crore for the quarter ended December 2021 as against Rs 230 crore in the last quarter.
The rupee revenue was up 5 percent at Rs 1,687.5 crore from Rs 1,607.7 crore, QoQ, while the dollar revenue stood at $225.1 million against $217.4 million.
Its earnings before interest and tax (EBIT) was up 6 percent at Rs 314.4 crore from Rs 296.4 crore and margin was up at 18.6 percent as against 18.4 percent, QoQ.
Rupee Opens
Indian rupee opened lower at 74.66 per dollar on Wednesday against previous close of 74.58.
The US dollar advanced by 0.59% yesterday amid a surge in US treasury yields and risk aversion in global markets. Yields remained elevated on anticipation that the US Fed will increase interest rates more aggressively to tame stubbornly high inflation, said ICICI Direct.
Rupee future maturing on January 27 depreciated by 0.46% amid strong dollar and risk aversion in the domestic markets. Further, the rupee slipped on persistent FII outflows and seven-year high crude oil prices, it added.
