Closing Bell: Indices end in the red, Nifty around 18,000; financials, IT top losers

Rohan

The Nifty-50 index has formed on the daily chart a Falling three-candle stick pattern and which is immediately followed by another bearish candle stick pattern termed as ‘dark cloud cover’, which suggests the bears are in control.

The benchmark started its day with a minor gap-up opening of around 50 points, which was indicated by the SGX NIFTY. But prices couldn’t hold on to their initial gains and started their lower high lower low journey for the day. Nifty registered its intraday low of 17,892.60 levels and post that recovered smartly in the final hour of the trading session.

Presently the immediate support for the Nifty is placed at 17,900 levels. However, if prices break below this level, then 17,800 – 17,750 will be the fast-forward target for the index. The upper band is capped below 18,200 levels where 21 EMA is placed.

Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty fell for the second consecutive session on Jan 05, though it recovered smartly from intraday lows post 1330 hrs. At close, Nifty was down 0.28% or 50.8 points at 17992.2. Volumes on the NSE are rising gradually as people return to work after holidays. Broad market improved over the previous session with advance decline ratio rising to 0.92:1. Capital Goods, Tyres, FMCG stocks were in demand.

European stocks edged lower on Thursday, snapping a three-day winning streak as minutes from the Federal Reserve’s meeting sounded a cautious tone on interest rates. Asian shares rose on Thursday on hopes for China's emergence from the pandemic.

Nifty showed an upward correction within the fall that started in the previous session. This rise could take it 18080-18120 band post which the downtrend could resume.

Vinod Nair, Head of Research at Geojit Financial Services

Globally, investors are digesting the FOMC minutes with stock markets trading lower revealing that the Fed officials' are determined to tame inflation by maintaining its aggressive stance. Financials led the losses in the domestic market, following dismal business numbers from NBFC leader. Oil prices recovered after falling sharply on fears of a worldwide recession, as investors remain optimistic about long-term demand.

Rupee at close | Rupee ends at 82.56/$ against Wednesday’s close of 82.80/$

Market close

Sensex closed 304.18 points lower at 60,353.27. Nifty ended 50.80 points lower or 0.28% at 17992.20. About 1667 shares advanced, 1705 shares declined, and 145 shares were unchanged.

Raghav Productivity Enhancers Shareholding | Ashish Kacholia’s name appears with 2.13% & Mukul Agrawal’s with 1.64% stake

Alert: ICICI-Videocon Case | Special CBI Court, Mumbai has rejected Venugopal Dhoot's application challenging his arrest

Dhoot'slegal team told CNBC-TV18 that they will now approach Bombay High Court

Godrej Ind Large Trade | 16.20 lakh shares worth Rs 69.61 crore change hands at an average of Rs 429.8 per share

Equitas SFB Q3 Update

-Gross advances up 27% YoY and up 9% QoQ
-Deposits up 31% YoY and up 8% QoQ
-CASA ratio at 46.24% vs 50.80% YoY vs 48.14% QoQ

December Auto Sales: Tata Motors

UK JLRsales down 12.5% year-on-year & down 16.7% month-on-month
UK JLRsales at 3,501 units vs 4,002 units YoYvs 4,204 units MoM

Market update at 3 PM: Sensex is down 356.31 points or 0.59% at 60301.14, and the Nifty shed 70.30 points or 0.39% at 17972.70.

17,000% return in 10 years but this market segment is a tough play

European Markets Updates

Around $4.0 billion worth of private equity investments likely to flow into real estate in 2023

Likhitha Infra bags orders worth Rs 457 crore in Q3 FY23 from various oil and gas distribution companies during the quarter from October 2022 to December 2022

Market update at 2 PM: Sensex is down 474.94 points or 0.78% at 60182.51, and the Nifty declined 108.60 points or 0.60% at 17934.40.

Havells India large trade | 15.96 lakh shares (0.25% equity) worth Rs 184.36 crore change hands at an average of Rs 1,149.9 per share

Ujjivan SFB Q3 Update

-Total disbursements up 1% YoY & down 1% QoQat Rs 4,838 cr
-Total deposits up 49% YoY & up 14% QoQ; CASA ratio at 26.2%

Suryoday SFB Q3 Update

-Gross Advances up 11% YoY and up 1% QoQ
-Deposits up 48% YoY & up 11% QoQ
-CASA ratio at 13.9% vs19.2% YoY & 17.3% QoQ

Indigo CEO Pieter Elbers on commencing operations from new Goa airport

We have 168 flights per week from the new Goa airport. The new flights supplement our operation from Dabolim.The new airport gives us great opportunity to better accommodate all the travel needs to and from Goa.The new airport speaks to the potential of Goa and speaks to the ambition of indigo who keeps serving its customers in a hassle free and very affordable fashion.

Markets at 1 PM

The Sensex is down 454.03 points or 0.75% at 60,203. Nifty is down 106.50 points or 0.59% at 17936.50. About 1363 shares have advanced, 1819 shares declined, and 110 shares are unchanged.

Grasim forms staffing solution subsidiary, 'Grasim Business Services'

Authorised capital: Rs 1 crore
Objective: The company will carry on the business of business support services including staffing solutions

Adani Group acquiring promoter stake in Orient Cement is factually incorrect: Statement

The exchanges had sought clarification from Adani Enterprises on media report -Adani Group In Talks To Buy Promoter Stake In Orient Cement.

In this respect, Adani Ent has said, "The aforesaid news item is factually incorrect and hence, we are not in a position to comment on the veracity of said media report."

Orient Cement (CMP: Rs 139) and Adani Enterprises (CMP: Rs 3810) are trading flat in today's session.

Apollo Tyres: F&O update

Apollo Tyres has seen biggest increase in open interest and its price has risen -this is a bullish sign. Rs 350 strike price has seen most call writing and that will be the biggest resistance for the stock from here on.

NTPC gains as company starts India's first green hydrogen blending project

Mohit Bhargava, NTPC on CNBC-TV18

-Have started green hydrogen blending in PNG network in Surat
-Plan to do 60 GW of renewablecapacity by 2032
-Already have 3 GW of operational renewable capacity
-Hydrogen consumption will happen due to mandate in the policy document
-Already have deals in place with Indian Oil & HPCL
-Have total annual capexof about Rs 20,000 cr
-Hope to get better valuation than 10x EV/EBITDA for renewable energy arm
-Hoping to dilute 20 percent stake in renewable energy platform

Suman Bannerjee, CIO, Hedonova, An AIF firm on valuation of Mamaearth

A company that sells soaps and face cream in cute packaging cannot be valued at a 1700x multiple. Some of the most innovative companies of our generation with defensible businesses are valued at 300x, case in point Amazon.Mamaearth will see a 70% drop in share price 1 year from IPO. I'm very upset that private investments has become a clubby old boys club that wants to protect their capital despite making bad investment decisions and the only way to make a buck is to dump on retail.

Also Read:P/E of 1,000? Investors cautious over huge valuation of Mamaearth IPO

Market update at 12 PM: Nifty slips below 18,000

Sensex is down 314.32 points or 0.52% at 60,343.13. Nifty sheds 69.30 points or 0.38% at 17,973.70.About 1491 shares have advanced, 1642 shares declined, and 135 shares are unchanged.

US Fed unlikely to hit pause in 2023 but pace of rate hike to slow down

Sources to CNBC-TV18 on Vodafone Idea

KM Birla meets telecom minister Ashwini Vaishnaw. KM Birla urges government to convert licence fee and spectrum dues into equities. In September 2021, government cleared conversion of outstanding government dues into equity. Government remains firm on seeking further fund infusion by promoters. Government clarified stance that equity conversion will be considered post fund infusion. No commitment shared by KM Birla on further fund infusion.

Arvind Fashions | Piyush Gupta resigns as CFO effective today

Gupta has resigned from the post of Chief Financial Officer of the company due to personal and family health reasons effective from close of business hours on January 5, 2023. As per the exchange filing, Girdhar Kumar Chitlangia has been appointed as the new CFO

IndusInd Bank To Launch Co-Branded Credit Card With Qatar Air & British Air

In a first-of-its-kind initiative, IndusInd Bank, British Airways Executive Club and Qatar Airways Privilege Club on January 5 announced their partnership to introduce the unique multibranded credit card, powered by Visa.

As per the exchange filing, the multi-branded credit card is slated to be launched and made available to consumers in the first quarter of the financial year 2023 – 2024. "Through this proposition, members will soon be able to collect Avios, the rewards currency for British Airways Executive Club and Qatar Airways Privilege Club, by signing up and choosing their preferred loyalty programme," it added.

IndusInd Bank is trading flat in trade at Rs 1217 on the NSE

Godrej Consumer Q3 Update

-Expect to deliver double-digit sales growth backed by low single-digit volume growth
-Indonesia business has started to see gradual recovery in performance
-Growth is led by around double-digit sales growth in both home & personal care
-Expect to deliver sales growth in mid-teens in constant currency terms
-Africa, US, & Middle East (GAUM) business continues strong sales growth momentum

Lupin Launches Triple Drug Combination Of Indacaterol, Glycopyrronium & Mometasone

Global pharma major Lupin on January 5 announced the launch of a novel fixed-dose triple drug combination (FDC) of Indacaterol, Glycopyrronium and Mometasone for managing inadequately controlled asthma amongst patients.

The estimated national burden of asthma in India is at 17.23 million with an overall prevalence of 2.05%. Out of this, approximately 30 lakh patients can be classified under “inadequately controlled”, the company said in an exchange filing.

Markets At 11 AM

Sensex is down 103.45 points or 0.17 percentat 60,554. Nifty is down 9.40 points or 0.05 percentat 18,033.60. About 1545 shares have advanced, 1495 shares declined, and 137 shares are unchanged.

F&O Manual: Exasperation as volatility spoils trades; opportunity in individual stocks

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One

:

Nifty is approaching the lower band of the recent trading range of 18000 - 18300. It would be interesting to see whether we continue with the recent behavior of recovering from similar points. If we drift below 18000, then we may see some extended correction towards recent lows of 17900 – 17750, which will again turn out to a bit severe on individual stocks.

As of now, we do not expect it to happen; but still, one needs to avoid aggressive bets and wait for some confirmation. As far as immediate resistances are concerned, 18100 - 18200 have now become intraday hurdle.

India’s $2-billion green hydrogen mission needs push from government: Industry

Market update at 10 AM: Sensex is down 73.95 points or 0.12% at 60583.50, and the Nifty shed 5.30 points or 0.03% at 18037.70.

Morgan Stanley on Adani Ports

-Overweight call, target at Rs 1,030/sh
-Cargo growth is down 13% QoQ for company in Q3
-As per company, container volume growth was 8% in December
-There is downside risk to company's guidance of 350-360 MMT for FY23
-Company to reach lower end of guidance
-Implied ask rate for Q4 is cargo growth of 24% YoY, which appears challenging

Marico gains as the FMCG firm expects modest growth in Q3 operating profit

FMCG firm Marico Ltd on January 4 stated that during the quarter ended December 31, 2022, its consolidated revenue grew in low single-digit on a year-on-year (YoY) basis due to a muted recovery in rural demand amid elevated inflation.

The company, which is expected to declare its third-quarter financial results this month, also added that in view of lower revenue growth, it expects modest growth in operating profit. "As we witnessed some semblance of stability in key input prices and consumer pricing across key franchises, gross and operating margins are expected to improve both on a sequential and year-on-year basis," Marico added.

Bajaj Finance down 5% as Q3 AUM growth disappoints

Despite reporting highest ever quarterly increase in increase in customer franchise,Bajaj Finance on January 5 declined 4% as the Street was disappointed by its AUM growth.Bajaj Finance's Assets under Management (AUM) rose 27 percent from last year to Rs 2.3 lakh crore from Rs 1.8 lakh crore. During the quarter, the company's AUM increased by Rs 12,500 crore, by 5.7%.

Broking firm CLSA has a 'Sell' call on Bajaj Finance with a target price of Rs 6000 per share. “Q3 AUM growth was nearly 200 basis points lower than our estimate of 7.5% QoQ. Q3 is usually a strong quarter due to festivals, so either there was some impact at end of Q2 or the company lost some market share,” the foreign brokerage firm noted.

FADA December Data: Total vehicle retail sales down 5.4% YoY

-Total vehicle retail sales down 5.4% at 16.22 lakh units vs 17.14 lakh units YoY
-Total 2-wheeler sales down 11.2% at 11.33 lakh units vs 12.75 lakh units YoY
-Total 3-wheeler sales up 41.5% at 63,655 units vs 44,983 units YoY
-Total Passenger Vehicle sales up 8.15% at 2.8 lakh units vs 2.58 lakh units YoY
-Total Commercial Vehicle sales up 10.7% at66,945 units vs 60,491 units YoY

Check out the gainers and losers in opening trade

Market Open

Sensex is up 44.66 points or 0.07%at 60702.11. Nifty is up 17 points or 0.09% at 18060.00. About 1459 shares have advanced, 537 shares declined, and 112 shares are unchanged.

Markets in pre-opening session

At 09:03 am, Sensex is up 178.77 points or 0.29 percentat 60,836.22. Nifty is up 83.80 points or 0.46 percentat 18,126.

Rupee Check | Rupee opens at 82.77/$ vs Wednesday’s close of 82.80/$

Ameya Ranadive, Equity Research Analyst at Choice Broking

After volatile trading following the release of the minutes from the Federal Reserve's most recent meeting, which showed officials laser-focused on controlling inflation even as they agreed to slow their pace of interest rate hikes, the S&P 500 finished higher on Wednesday but below its session peak.

According to market trends, the broader Indian index should rise 40 points at market opening, which would be a respectable start.

On January 4, domestic institutional investors (DII) bought shares worth Rs 773.6 crore, while foreign institutional investors (FII) sold shares worth Rs 2620.9 crore, according to preliminary data made available on the NSE. Due to FII selling, the market obviously declined yesterday and was unable to overcome its barrier.

Today, we anticipate a sideways and volatile market in a range before the first weekly expiry of Jan 2023.

Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities Ltd

Markets are expected to make a firm start on Thursday tracking positive global cues even as the US FOMC minutes showed no indication of going slow on rate hikes in the new year. Besides, local traders are taking the opportunity to book profit as concerns of higher valuations weigh while global macroeconomic concerns continue to remain a major worry. Domestic concerns can take solace from two positive catalysts; WTI oil prices tumbling 5% and the US 10-year bond yield declining to 3.71%.

Some stocks to watch out for in today's trading session

-Adani Ports: December cargo volume at 25.1 MMT
-BSE: Sundararaman Ramamurthy takes charge as BSE MD, CEO
-Bajaj Finance: Record number of new loans booked in Q3
-Coal India: Agrees with unions to raise salaries by 19%
-HPCL: To build 9MMTPA refining plus petchem complex in Rajasthan
-Hindustan Unilever: Completes purchase of 19.8% in Nutritionalab
-IRB Infra: To split each share into 10
-Likhitha Infrastructure: Gets Rs 457 crore orders in Oct.-Dec.
-Mahindra Finance: RBI lifts curbs related to loan recovery
-Marico: Sees ‘modest’ Q3 operating profit growth on lower revenue gain
-NALCO: Board meeting on Jan 17 to consider interim dividend
-NTPC: NTPC Green Energy, HPCL sign Memorandum of Understanding
-Tata Motors: Electric cars seize unprecedented share of ailing UK auto market
-Tata Power: India CERC allows Tata Power compensation for emergency supplies

Godrej Properties sells over 1 million square feet of area in a new launch at its project Godrej Garden City in Ahmedabad

The company has sold 870 homes with a booking value of approximately Rs 435 crore since Celeste was launched in October 2022. Covering ~2.3 hectares, Celeste includes 8 towers and offers homes and retail outlets of various configurations, the company said in an exchange filing on January 5. The stock will be in focus in today's trading session