Closing Bell: Sensex falls over 400 points, Nifty ends below 17,900; IT, metals, financials top losers

Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty fell for the third consecutive session on Jan 06. At close, Nifty fell 0.74% or 132.7 points at 17,859.5. Volumes on the NSE again fell suggesting indecision on the part of traders to trade. Broad market indices continued to bleed as advance decline ratio remained low at 0.51:1.

Asian shares were mixed Friday after Wall Street benchmarks fell on worries that the U.S. Federal Reserve will keep raising interest rates. European stocks struggled to maintain gains on Friday as traders braced for US jobs data due later that will help chart the path forward for Federal Reserve monetary tightening.

Nifty almost tested the recent lows of 17,779 and bounced up a little. On a weekly basis, Nifty lost 1.36% falling in 4 out of 5 weeks and gave up almost the entire gains of the previous week. Nifty on breaching the recent lows of 17,779 could head towards 17,429 while 18,105 could act as a resistance in the near term.

Ameya

Domestic benchmark indices edged lower on Friday, after strong US jobs data indicated the Federal Reserve would have to keep hiking interest rates. Sensex settled at 59,900falling 452. Nifty ended at 17,859 losing 132.70 points. Nifty's breadth has ended on a very negative note as 10 stocks advanced while 40 declined.

The Nifty has managed to close below 18000, an important psychological level, for the last 2 consecutive days, suggesting weakness. A break above 18100-18150 will act as a crucial zone for Nifty to start its upward journey. Bank Nifty too has failed to close above 42200 levels and this weakness has persisted the entire week.

Indicators such as RSI and MACD are losing strength suggesting that this weakness will persist.

Open interest data indicates, on the call side the highest OI was witnessed at 18,000 followed by 18,100 strike prices while on the put side, the highest OI witnessed at 17800 followed by 17700 strike price. On the other hand, Bank Nifty has support at 41,900 levels while resistance is placed at 42,700.

Kunal Shah, Senior Technical Analyst at LKP Securities

The BANK NIFTY index witnessed strong selling pressure at a higher level throughout the week and the index formed a lower low formation on the daily chart. The index immediate hurdle on the upside is visible at 42,500 and the next support is at 42,000 which if breached will drag the index towards the 41,500 level which will be the last hope for the bulls.

Vinod Nair, Head of Research at Geojit Financial Services

Investor risk sentiment took a blow post the release of the FOMC meeting minutes, which indicated further rate hikes in 2023 to tame inflation. Upcoming key US jobs data is expected to be encouraging which would influence the next Fed’s policy. The market already remains sensitive to FIIs selling and IT stocks traded with deep cuts ahead the release of corporate earnings next week as the growth is anticipated to be muted.

Ajit Mishra, VP - Technical Research, Religare Broking

Markets extended decline and lost nearly a percent, tracking weak global cues. After the initial uptick, Nifty traded under pressure for most of the session and almost retested the last month’s low. It witnessed a marginal rebound in the end and finally settled at 17859 levels. The majority of sectoral indices traded in sync with the benchmark and ended lower wherein IT and banking were among the top losers. The broader indices too witnessed a decline and lost in the range of nearly a percent each.

Weak global cues are largely weighing on sentiment in absence of any major trigger from the domestic front. We may see some breather in the Nifty index after the recent slide but the tone is likely to remain negative, citing the weak structure of several index heavyweights. Participants should align their positions accordingly while keeping a check on leveraged trades.

Rupee at close | Rupee ends at 82.72/$ against Thursday’s close of 82.56/$

Market close

Sensex closed 452.90 points lower or 0.75 percentat 59,900. Nifty is down 132.70 points or 0.74 percentat 17,859.50. About 1392 shares have advanced, 2007 shares declined, and 128 shares are unchanged.

Indian equities likely to exhibit resilience in 2023: Windmill Capital

Indian market will continue to exhibit resilience in 2023 continuing the trend from 2022, with manufacturing, electric mobility, infra, and defines as themes doing well. This despite concerns around global slowdown and a possible recession in the West due to unwinding of monetary policy by major global central banks. Specialty Chemicals, Electric Mobility, Infra, Auto, Banking, and Defence will be the key themes to watch out for in 2023 as per Naveen KR, smallcase manager and Senior Director at Windmill Capital.

Escalation of geo-political tensions between Russia-Ukraine, China-Taiwan, and a fresh spike in prices of crude oil are major challenges to global economic and equity growth. In 2022, comparative to most global markets, the Indian markets have managed to be in the positive terrain with gains of 3.02 percent.

Canara Bank hikes lending rates by 15-25 bps across tenures

Market update at 3 PM

Sensex is down 408.42 points or 0.68% at 59944.85, and the Nifty shed 121 points or 0.67% at 17871.20.

Milind Muchhala, Executive Director, Julius Baer India

The Indian equity markets have begun the new year on a slightly cautious note, in line with the global markets, continuing the trend visible in December 2022. While expectations remain of softer rate tightening by the global central banks from hereon, concerns remain on the overall economic environment amidst the high interest rates and sticky core inflation. 2023 is expected to be ‘the year of cool down’; both growth and inflation rates globally are likely to slow down, as monetary policy normalisation takes its toll and some of the pandemic-related constraints ease.

Overall, the inflation rate is expected to fall more than the growth rates. Indian markets have been one of the best performing markets globally in CY22, aided by its relatively strong growth – both GDP and corporate earnings – and resilient domestic liquidity, a trend likely to continue in CY23 as well. However, in the near term, the markets seem to be running into a few headwinds - record high valuation premium to EMs (although the valuations are only slightly above its own historical averages) which may attract some tactical shifts to other EMs, potential slowdown in exports on the back of global slowdown, and Fixed Income emerging as a viable investment option. Hence, while we continue to remain constructive on the markets, we believe there could be several interim opportunities in the near term as the markets adjust to the headwinds.

Precision Wire India Board approves preferential issue of 52 lakh shares (3 percent equity) at Rs 73.3

Earnings preview: Q3 to bring PAT, margin growth for banks

European Markets Updates

Market update at 2 PM: Sensex is down 493.62 points or 0.82% at 59859.65, and the Nifty shed 141 points or 0.78% at 17851.20.

DB Realty | CFO Asif Balwa resigns; Atul Bhatnagar re-designated As CFO

The company said in an exchange filing that Asif Balwa has resigned from the position of Chief Financial Officer with effect from the closing of business hours on 5th January, 2023.

Atul Bhatnagar, who has been acting as Joint Chief Financial Officer, has been redesignated as CFO with effect from 6th January, 2023.

Phoenix Mills Large Trade | 4.60 lakh shares (0.27% equity) worth Rs 65 cr change hands at an avg of Rs 1,415.95 per share

Anant Goenka, MD and CEO, CEAT

In an interview to Livemint

Our vision will be to cross $2 billion in revenues in the near term by focusing on the passenger and off-highway tyre (OHT) segments. We are already at a leading position in the two-wheeler segment and are now expanding our growth in the passenger car and SUV (sport-utility vehicle) segments, where penetration in India is still low. Internationally, India is becoming the farm tyre manufacturer for the world, and we have made strong gains in the EU and US markets over the last five years.

Markets

Sensex is down 650 points or 1.07 percentat 59705. Nifty is down 183.80 points or 1.02 percentat 17,808.40. About 1077 shares have advanced, 2126 shares declined, and 122 shares are unchanged. All sectors are trading in the red.

Dabur Q3 Business Update

-India business expected to report low to mid-single digit revenue growth
-Healthcare portfolio returned to positive growth trajectory
-Demand trends for the industry remained weak during Q3FY23
-Rural markets continue toremain under pressure
-Gross margin will be marginally better sequentially
-Rural markets showed early signs of recovery towards the end of the quarter

F&O Update

-As market has moved downwards, more and more stocks are seeing bear pressure
-These are the stocks that have seen short build up - a scenario when price falls but open interest rise

Pic source: MyF&O

Sensex drops 400 points, Nifty below 17,900; all sectors in red except Nifty FMCG

Bajaj Finance fell below Rs 6000 for first time since 18 July, 2022

After shedding 7 percent on Thursday, the share price of consumer financier Bajaj Finance extended decline on Friday after as investors were unimpressed by the company's low AUM (assets under management) growth in October-December quarter.

Bajaj Finance's 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, up only 5.7 percent quarter-on-quarter. 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. Read more

Markets at 12:15 PM

Sensex is down 242.06 points or 0.40 percentat 60,111. Nifty is down 67 points or 0.37 percent at 17,925. About 1466 shares have advanced, 1658 shares declined, and 140 shares are unchanged.

Sigachi Industries gains after company informs of Board meeting on Jan 10 to consider fund raising

The Board will consider the proposal of raising funds by way of issue of equity or convertible warrants on preferential basis to the promoters and non-promoters, subject to the receipt of necessary approvals / permissions, the exchange filing noted.

Satin Creditcare Network approves issuance of non-convertible debentures worth Rs 25 crore

Kotak Institutional Equities' Q3 Earnings Preview

-Excluding metals & mining sector, net income of the coverage universe is expected to increase 14% YoY and 11% QoQ
-Expect 3QFY23net profits of the BSE-30 index to increase 9% YoY and 6% QoQ and for the Nifty-50 index to increase 11% YoY and 9% QoQ
-Estimate ‘EPS’ of the BSE-30 index at Rs 2,655 for FY2023 and Rs 3,014 for FY2024 and of the Nifty-50 index at Rs 798 for FY2023 and Rs 927 for FY2024

Bharti Airtel launches 5G services in Hissar & Rohtak

Bharti Airtel has announced the launch of its 5G services in Hissar and Rohtakon January 6. Airtel’s 5G services are already live in Gurugram and Panipat. Airtel 5G Plus services will be available to customers in a phased manner as the company continues to construct its network and complete the roll out, the company said in a press release.

Alembic Pharmaceuticals receives USFDA final approval for Fesoterodine Fumarate Extended-Release tablets

Alembic Pharmaceuticals on January 6 announced that it has received final approval from the US Food & Drug Administration (USFDA) for its ANDA, Fesoterodine Fumarate Extended-Release Tablets, 4 mg and 8 mg.

Fesoterodine Fumarate Extended-Release Tablets are indicated for the treatment of overactive bladder (OAB) in adults with symptoms of urge urinary incontinence, urgency, and frequency. It had an estimated market size of US$ 177 million for twelve months ending Sep 2022 according to IQVIA.

Tata Technologies unlisted stock jumps 30% over three weeks

RBI Governor Shaktikanta Das at IMF event

-Taming inflation, containing external vulnerabilities, raising productivity, strengthening co-operation for energy security, green energy co-operation, and promotion of tourism are key policy priorities for South Asian nations.

-Rupee settlement of trade, CBDCs can be avenues of greater co-operation among South Asian nations

Ambit Finvest acquires SME Corner business

Ambit Finvest, the NBFCof the Ambit Group, on January 6 announced the acquisition of lines of businesses pertaining to business loans to micro, small and medium sized enterprises of SME Corner (trade name of Digikredit Finance, an RBI registered NBFC). This will further strengthen its footprint in the SME lending space, by adopting and leveraging the technologically advanced solutions offered by the digital lender, stated the press release.

SME Corner is based in Mumbai and currently operates in 21 states. It offers Unsecured Business Loans and Loan Against Property, as also special products like MSME Loans and Women Entrepreneur Loans, which meet the needs of working capital and encourages women entrepreneurs in India. It has empowered 17,000+ SME business owners till date and currently has an AUM of around Rs 450 cr.

Markets at 11 AM

At 11 am, Sensex is down 218.69 points or 0.36 percentat 60,134. Nifty is down 60.90 points or 0.34 percentat 17931.30. About 1444 shares have advanced, 1617 shares declined, and 119 shares are unchanged.

Jefferies on Reliance Industries

-Buy call, target at Rs 3,100 per share
-Forecast 18% EBITDA growth in FY24
-Forecast 21% growth in retail on the back of floor space growth in FY24
-Forecast 24% growth in JIO on tariff hike and home broadband traction in FY24
-See potential earnings upside from O2C if China's demand recovers by mid-CY2023
-Valuation has moderated imputing little value to green energy

RVNL in focus after bagging projects worth Rs 166 crore from Gujarat Metro Rail Corp

State-owned Rail Vikas Nigam Ltd (RVNL) on Thursday said that it has bagged a project worth Rs 166 crore from Gujarat Metro Rail Corporation (GMRC). The project is expected to be completed within 22 months.

"Rail Vikas Nigam Ltd (RVNL) - ISC Projects Private Limited JV' has received LOA (Letter of Acceptance)... for design, supply, installation, testing and commissioning of ballastless track from Sarthana to Dream city in elevated and underground sections, including connecting lines to depot along with ballasted/ballastless/ embedded standard gauge track for corridor-1, Surat Metro Rail Project, Phase-1," the state-owned firm said in a BSE filing.

LKP Securities initiates coverage on CSB Bank; target price at Rs 313

CSB Bank has been reporting strong performance since listing. A strong loan growth driven by gold loans and comfortable CDR is evident. The credit quality recovery (1.7% in 2QFY23 vs 7.9% in FY18) was meaningful driven by lower delinquencies and quicker recoveries. A healthy capital position (CAR: 25%), post IPO is likely to keep the momentum going. Factoring double digit advance growth, stable NIMs and lower credit cost; the bank may post 22% PAT growth in current fiscal year. Attractive valuation makes the stock rewarding factoring FY23E/FY24E ROA of 2.1%.

Vodafone Idea approaches banks for Rs 7,000-crore emergency loan: Report

Beleaguered telecom operatorVodafone Ideahas approached a host of lenders to raise loans worth over Rs 7,000 crore,The Economic Timesreported on January 6. Most part of it would be used to clear a portion of its dues to Indus Towers, the report said, citing three people aware of the matter.

A senior bank official toldETthat Vi did approach them for a loan, but it is a logjam. The lender has not committed anything to the telco.

Reportedly, an official at another lender said Vi has asked them to factor in Rs 15,000-crore bank guarantees and grant fresh loans.

Moneycontrolcould not independently verify the report. Read More

Rajnish Kumar interview | When Rakesh Jhunjhunwala said he didn't trust SBI's books

Sobha Q3 Update

-Sales volume up 11.6% YoYat 1.47 msf
-Sales value up 36% YoYat Rs 1,425 cr
-Avg Realisation up 21.9% YoYat Rs 9,650/sqft

IDBI Bank jumps over 3.5% after Sebi permits government stake to be reclassified as 'public'

The Securities and Exchange Board of India (SEBI) has given its nod for reclassification of the government's shareholding in IDBI Bank as "public" following its stake sale, as per a regulatory filing. IDBI Bank, in the exchange filing, attached a letter received from the market regulator, dated January 3, 2023, that grants permission for reclassification on the condition that the government's voting rights would have to be capped at 15 percent. "The voting rights of GoI shall not exceed 15 percent of the total voting rights of the bank," SEBI stated. Read more

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The major drag on the market now is the sustained selling by FIIs. FIIs sold for the 10th consecutive day yesterday taking the cumulative selling to Rs 11400 crores. The underperformers of last year like China and Europe are doing well. Clearly, FII money is chasing lower valuations by selling in overvalued markets like India. This trend might continue imparting weakness in the Indian market. This trend will open opportunities for investors. FIIs will sell stocks in which they are sitting on profits, like the banking segment. And this segment continues to be strong. Last year, too, selling by FIIs in banks turned out to be opportunities for domestic investors. Globally, the phenomenon of good economic news becoming bad news for markets might continue in the near term. The latest data from the US show increasing job creation and declining jobless claims.

Anand James - Chief Market Strategist at Geojit Financial Services on USD-INR

We had gone in yesterday having abandoned the 83.25 view, in favour of declines into the 82.75-82.59 band. That the lower extremity of the band was tested indicates the underlying bearishness, but 82.59 being a congestion support, a recovery run may be expected, though we will wait for a 82.78 before playing strong upsides.

Market open

Sensex is up 77.23 points or 0.13% at 60,430.50. Nifty is up 24.60 points or 0.14% at 18,016.80. About 1205 shares have advanced, 679 shares declined, and 115 shares are unchanged.

Rupee Check | Rupee opens at 82.55/$ vs Thursday’s close of 82.56/$

Macrotech Q3 Update

Sebi permits government stake in IDBI Bank to be reclassified as 'public' after selloff

Research Analyst, Senior VP (Research), Mehta Equities

Caution is likely to prevail in early trades as overnight fall in the US markets and subsequent choppy trend in Asian equities could dampen local market sentiment. While worries over global economic slowdown due to rising interest rates and falling demand continue to weigh, FIIs too have been deserting local markets over the past week, selling to the tune of Rs 10,676 crores in the last 9 sessions. The only positive catalyst this morning is the sluggish WTI Oil price at $74 a barrel. Technically, for Nifty the immediate aggressive downside risk is seen at 17771 mark and then aggressive targets at 17461 mark. The index will gain strength only if it closes above its high of 18267 mark.

Watch out for Bank Nifty today. Yesterday's low a sacrosanct support level

For the Bank Nifty, there was a bounce of 300 points from the lows on Thursday. Yesterday's low of 42,298 is now considered a sacrosanct support level. On the upside, 42,800 will now act as resistance. It will be important to watch the price action in ICICI Bank. If ICICI Bank falls to its 200 day moving average, it could be a sign that the Bank Nifty could fall further. Read more

Some stocks to watch out for in today's trade

Ambuja Cements: Incorporates Ambuja Resources unit
Aster DM Healthcare: CFO Sreenath Pocha Reddy resigns
Coal India: December coal output jumps 10.8% YoY to 82.9 million tons
IDBI Bank: SEBI allows bank to seek change in Govt holding category
L&T: To sell entire stake of 99% in Think Tower Developers
M&M: Liquidates Mahindra West Africa
RVNL: JV gets Rs 166 crore LoA for Surat Metro rail work
Tata Motors: To report its Q3 results on Jan 25

Buzzing Stocks | Larsen & Toubro, Ambuja Cements, IDBI Bank, and others in news today