Ajit Mishra, VP - Research, Religare Broking:
Markets traded volatile and ended marginally higher amid mixed cues. The beginning was upbeat however profit-taking at higher levels trimmed the gains as the day progressed. Finally, the Nifty ended higher by 0.4% to close at 17,812.70 levels.
A mixed trend was witnessed on the sectoral front wherein FMCG, energy and IT posted gains while auto and pharma ended subdued. Meanwhile, the broader indices managed to inch higher and gained in the range of 0.4-0.6%.
Markets are likely to consolidate further after the recent surge and it would be healthy. Meanwhile, volatility is likely to remain high, citing mixed global cues and COVID-related updates. Besides, upcoming macroeconomic data (IIP, CPI, and WPI) and the beginning of the earnings season could further add to the choppiness.
We recommend continuing with a positive yet cautious approach and preferring hedged positions.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
Post a correction from mid Oct to mid Dec, the Nifty continued with its recovery process for the third consecutive week. On the way up, it has crossed certain crucial short term hurdles. In terms of the Fibonacci retracement, it has retraced 61.8% of the entire decline.
For the last couple of sessions, the index is consolidating near this key Fibonacci level. The hourly Bollinger Bands have become flat thus suggesting that the consolidation can continue for some more time. The overall structure shows that this is a healthy consolidation, which will prepare the setup for the next up move.
So for the next few sessions, sideways action can take place in the range of 17650 – 18000. On the downside, 17650-17600 will provide cushion for any minor degree dip whereas on the higher side, 18000 mark is expected to keep the rise in check for the short term.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Domestic equity markets started 2022 on a strong note with majority indices moving in the north direction this week. Despite rising covid cases in India and globally, the markets moved higher as the severity of Omicron variant seems to low. BSE 30 and NSE 50 index inched up by 2.6% each during the week.
After witnessing correction in recent weeks, BSE Bankex index staged a strong comeback with returns of 6.5% in this week. Defensives like BSE IT and BSE Healthcare gave negative returns during the week.
FII turned out to be net buyer in the January month till date. The 10 year US treasury yield moved higher during the week and crude oil prices (Brent crude) increased beyond the USD 80 mark and is inching closer to the October 2021 highs.
Inflation concerns, higher interest rate scenario and increasing covid cases are some of the challenges for the market. Domestic markets over the next one month will closely track the upcoming quarterly results and the Union Budget.
Emkay Global Financial Services:
The hawkish Fed minutes didn’t have a desired impact on USDINR spot and instead of appreciating it is still flat hovering around 74.50 zone. The focus is on tonight’s US NFP data for guidance on trajectory.
A set of solid job data, in particular wage growth, may likely push the USDINR spot higher, but a dismal data would weigh on spot, pushing it below 74 zone next week. So broadly we expect the USDINR spot to trade within 73.85-75 range.
Palak Kothari, Research Associate at Choice Broking:
It was a volatile day, after a positive opening index made an intraday high at 17905 level but showed profit booking from a higher level as made intraday low at 17704.55 levels and managed to close the session at 17812.70 level with a gain of 66.80 points.
On the technical front, the index has been trading with higher high & higher low formation on a weekly chart as well as formed open marubozu candlestick which suggests an upside rally in the counter. On a four hourly chart, index has formed a hammer kind of candlestick pattern which adds bullish momentum for upcoming sessions.
Moreover, the index has been trading above 21 & 50-HMA which suggests strength in the counter. However, a momentum indicator MACD trading with a positive crossover on the daily time-frame. At present, the index has support at 17500 levels while resistance comes at 18000 levels, crossing above the same can show 18200-18300 levels. On the other hand, Bank Nifty has support at 36800 levels while resistance at 38300 levels.
Market Close
: Benchmark indices ended on positive note on January 7 in the volatile session.
At close, the Sensex was up 142.81 points or 0.24% at 59,744.65, and the Nifty was up 66.80 points or 0.38% at 17,812.70. About 1910 shares have advanced, 1235 shares declined, and 78 shares are unchanged.
Grasim Industries, ONGC, Hindalco Industries, HDFC Life and Shree Cements were among the top Nifty gainers. Losers were M&M, Bajaj Finserv, L&T, Bajaj Finance and HDFC.
On the sectoral front, Bank, metal, FMCG, Oil & gas indices up 0.5-1 percent, while selling was seen in the Auto, Capital Goods and Pharma names. BSE midcap and smallcap indices ended in the green.
UBS on SRF
Foreign research firm UBS has maintained buy rating on SRF with a target at Rs 3,000 per share.
It forecast an earnings upgrade, led by strong outlook in specialty chemicals & refrigerant gas.
It expect packaging & technical textiles may deliver better profitability and expect company to beat management's specialty chemicals revenue guidance of 15-20% in FY22.
Buzzing
Ujjivan Small Finance Bank share price jumped over 8 percent intraday on January 7 after the company reported 22 percent year-on-year growth in its loan book for the quarter ended 31 December.
The lender's gross loan book rose 22 percent to Rs 16,600 crore as on Q3FY22 as against Rs 13,600 recorded on the same quarter of previous year. Sequentially, the loan book grew 15 percent from Rs 14,500 crore as on 30 September 2021, the bank said.
Total deposits aggregated to Rs 15,600 crore as on December 31, 2021, up 34 percent YoY and up 10 percent QoQ.
CLSA on Macrotech Developers
CLSA has kept sell rating on Macrotech Developers with target at Rs 1,000 per share.
The pre-sales guidance of Rs 9,000 crore would require very strong performance in Q4. Its net debt declined sharply to Rs 990 crore, is in-line with expectations.
The UK business has done well in terms of sales of £ 191 million in Q3 and CLSA believes its current valuation prices in a blue sky scenario, leaving no upside potential.
Yash Gupta, Equity Research Analyst, Angel One:
Oberoi Realty is a real-estate company, focusing on the MMR region. Company having business vertices of residential and commercial real-estate.
Company has reported a strong set of numbers in Q2FY22, we expect residential real-estate growth momentum to continue for the next couple of quarters as in Q3FY22 company has launched Elysian Tower B in Goregaon along with this upcoming launch of Thane.
With a diversified revenue mix, the company owns Oberoi Mall (0.5 msf), Commerz (1.1 msf) and the west in hotel (269 room keys). We expect occupancy levels to improve in CY2022.
Company having Robust launch pipeline in FY23, company expects to launch Thane residential project in Q4FY22 along with this Borivali project. We have seen good consolidation across India towards top-10 players. Top-10 players now hold 11.2% market share as compared to 5.4% in 2017. We believe that top-10 players will continue to gain market share. We have a buy rating on Oberoi Realty.
TCS selected by External Affairs Ministry for 2nd phase of passport seva program
Tata Consultancy Services (TCS) has been selected by the Ministry of External Affairs (MEA), Government of India for the second phase of the immensely popular Passport Seva Program, company said in its release.
In the next phase of the program, TCS will refresh existing facilities and systems, and develop innovative new solutions to enable the issuance of e-passports and further enhance the citizen experience using technologies such as biometrics, artificial intelligence, advance data analytics, chatbots, auto-response, natural language processing, and the cloud, it added.
Tata Consultancy Services was quoting at Rs 3,847.80, up Rs 40.95, or 1.08 percent on the BSE.
CRISIL revises rating of Ashoka Buildcon to 'watch with developing implications':
CRISIL Ratings Limited (the Credit Rating Agency) has the Credit Ratings for both long-term and short-term debt of the Company as
'CRISIL AA- and CRISIL A1+' respectively.
However, the outlook on the rating has been revised from 'Stable to 'Watch with Developing Implications'
Ashoka Buildcon was quoting at Rs 103.45, down Rs 1.65, or 1.57 percent on the BSE.
Market at 3 PM
Benchmark indices were trading flat amid volatility in the final session of week.
The Sensex was down 20.23 points or 0.03% at 59581.61, and the Nifty was up 21.30 points or 0.12% at 17767.20. About 1894 shares have advanced, 1243 shares declined, and 79 shares are unchanged.
Morgan Stanley on HPCL
Morgan Stanley has kept overweight rating on HPCL with target at Rs 391 per share.
The refining margin is consistently rising with fuel demand above pre-COVID levels, while fuel inventories at multi-year low, refinery capacity rationalization keeping markets tight.
The slower exports from China should add to upside, it added.
Hindustan Petroleum Corporation was quoting at Rs 317.70, up Rs 3.65, or 1.16 percent on the BSE.
Nifty FMCG index added 0.5 percent led by the Britannia Industries, Nestle India, HUL
European Markets Updates
Century Plyboards to invest Rs 28 crore in arm Century Panels
The company has made further investments to the extent of Rs 28 crore in its wholly owned subsidiary company, Century Panels Limited, by way of subscription to 2 crore and 80 lakh ully paid up equity shares of face value Rs 10 each through Rights issue. The stock was trading at Rs 624.55, down Rs 8.05, or 1.27 percent. It has touched an intraday high of Rs 641.15 and an intraday low of Rs 619.65.
Market update at 2 PM: Sensex is up 85.92 points or 0.14% at 59687.76, and the Nifty added 47.60 points or 0.27% at 17793.50.
Bitcoin slumps to lowest since September
Bitcoin on Friday slumped as much as 5% to its lowest since late September, tumbling under USD 41,000 amid a broader sell-off for cryptocurrencies.
Bitcoin was last down 3.7% after touching USD 40,938, its lowest since September 29. The world's biggest cryptocurrency has lost over 40% since hitting a record high of USD 69,000 in November and the volatility that has plagued it since its birth 13 years ago remains stubbornly present.
Hinduja Global Solutions hits 20% lower circuit
Hinduja Global Solutions announced an interim dividend of Rs 150 a share and one for one bonus share on Thursday. This comes to Rs 315 crore total dividend against $1.09 billion sale of its healthcare operations.
The firm said that it has completed the sale of its healthcare services operations to a wholly-owned subsidiary of Betaine BV, funds affiliated with Baring Private Equity Asia. The transaction was based on an enterprise value of $1.20 billion, subject to closing adjustments, and resulted in inflows of $1.09 billion.
Hinduja Global Solutions was quoting at Rs 2,855.45, down Rs 713.85, or 20 percent on the BSE.
Easy Trip Planners to consider bonus issue on January 12
A meeting of the board of directors of Easy Trip Planners is scheduled to be held on, January 12, 2022, for considering the proposal for issue of bonus shares.
Easy Trip Planners was quoting at Rs 558.40, up Rs 21.85, or 4.07 percent on the BSE.
Ajay Thakur, Head – BSE SME & Startups on BSE SME platform crossing Rs 50000 crore of market cap:
Today the Market cap of companies listed on BSE SME platform crossed the milestone of Rs 50,000 crore. It is truly a memorable moment in our history and one we are very proud of.
Small and Medium enterprises are the backbone of Indian economy and the rapid growth in scale we are observing currently is a bright indication of progress of our great nation. This milestone is also a testament to the consistent efforts taken by BSE SME in creating awareness amongst SMEs about benefits of listing.
In last ten years, BSE has organised 2500 seminars and 500 webinars along with various industrial and professional associations across the country. BSE has signed MOUs with various state governments, financial institutions and professional bodies. BSE officials have also met over 36000 SME promoters to make them understand the benefits of listing and the results of all these efforts are evident in terms of the market cap milestone.
Over these 10 years, BSE SME has helped 358 SME companies from diverse sectors to list and raise over Rs 3500 crore of equity funds and we are confident of many more SME companies to list and raise funds from BSE SME platform going forward.
Macrotech Developers reports pre-sales of Rs 2608 crore
Macrotech Developers has reported pre-sales of Rs ~ 2608 crore, the best quarterly performance in last 12 quarters, up 40% on YoY basis.However, collections were Rs ~ 2,127 crore in 3QFY22. This is up 44% on a YoY basis, company said in the press release.
Macrotech Developers was quoting at Rs 1,201.60, up Rs 0.40, or 0.03 percent on the BSE.
Market at 1 PM
Benchmark indices erased all the intraday gains and trading flat in the afternoon session.
The Sensex was down 25.43 points or 0.04% at 59576.41, and the Nifty was up 11.90 points or 0.07% at 17757.80. About 1768 shares have advanced, 1331 shares declined, and 78 shares are unchanged.
Adani Enterprises clarifies on contract from NTPC
NTPC has awarded contract to Adani Enterprises for supply of 1.00 MMT of imported coal to its various power plants. The contract has been awarded by NTPC through an elaborate bidding process, started in end of October 2021. followed by Reverse Bidding 8- negotiations, company clarifies on BSE.
Adani Enterprises was quoting at Rs 1,697.75, down Rs 14.60, or 0.85 percent.
GM Breweries Q3 results:
GM Breweries has posted 6.2 percent fall in its Q3 net profit at Rs 19.8 crore versus Rs 21.1 crore and revenue was up 25.5% at Rs 130.9 crore versus Rs 112.1 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) was down 2.9% at Rs 27 crore and EBITDA margin was at 20.6 percent, YoY.
GM Breweries was quoting at Rs 763.15, down Rs 85.60, or 10.09 percent on the BSE.
Over 400 stocks have touched their 52-week highs during the day; click here to get a complete list of stocks:
Alembic Pharma gets USFDA tentative approval for Vortioxetine tablets
Alembic Pharmaceuticals has received tentative approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Vortioxetine Tablets 5 mg, 10 mg, 15 mg, and 20 mg, company said in its release.
The tentatively approved ANDA is therapeutically equivalent to the reference listed drug product (RLD) Trintellix Tablets 5 mg, 10 mg, 15 mg, and 20 mg, of Takeda Pharmaceuticals, USA, lnc.. (Takeda). Vortioxetine Tablets are indicated for the treatment of major depressive disorder (MOD), it added.
Alembic Pharmaceuticals was quoting at Rs 814.60, down Rs 5.90, or 0.72 percent on the BSE.
Market at 12 PM
Indian benchmark indices erased most of the morning gains but still trading higher with Nifty around 17800.
The Sensex was up 149.98 points or 0.25% at 59751.82, and the Nifty was up 56.00 points or 0.32% at 17801.90. About 1961 shares have advanced, 1083 shares declined, and 92 shares are unchanged.
Kalyan Jewellers India Q3 Business Updates:
Kalyan Jewellers India's consolidated revenue growth for the recently concluded quarter was ~17% and witnessed revenue growth of over 15% for India operations during the recently concluded quarter, cokmpan
The online jewellery platform, Candere, recorded a revenue growth of over 35% during the quarter.
Kalyan Jewellers India was quoting at Rs 72.30, up Rs 0.50, or 0.70 percent.
Emkay on Titan Company
We expect Titan to report a solid 30% revenue growth to Rs 95 bn (37% excl Rs3.4bn bullion sale in Q3FY21). A slight improvement in the studded mix and operating leverage should lead to a ~150bps improvement in its EBITDA margins to 13.2%. We estimate a PAT of Rs 8.6 bn versus Rs 4.2 bn in Q3FY21.
Factoring in the solid growth momentum, we increase our FY23/FY24 EPS estimates by 8-9% and raise our Dec’22 target price to Rs 3,000 (from Rs 2,770), valuing the stock at 65x Dec’23E EPS. Retain buy.
Titan Company touched a 52-week high of Rs 2,687.30 and was quoting at Rs 2,593.75, down Rs 3, or 0.12 percent on the BSE.
BSE Bankex index rose 1 percent supported by the AU Small Finance Bank, Bandhan Bank, ICICI Bank
Gaurav Garg, Head of Research, Capitalvia Global Research:
The Indian benchmarks started with a gap-up opening, with a mix of global cues where flat US market and negative European market.
Traders can take cautious position as COVID cases rising India. As per yesterday data on 6th Jan Foreign Institutional Investors (FIIs) were the seller and Domestic Institutional Investors (DIIs) were net buyers in the Indian equity market.
Our research suggests that if the Nifty spot cross and sustains the level of 17910, we may expect further gain in the Nifty. If market unable to sustained the level of 17910, we can expect it to trade till the lower range of 17710-17510.
Omicron to hit India's Q4 GDP by 0.40%, dent FY22 growth by 0.1%: Report
The Omicron variant spread will impact the January-March quarter GDP by 0.40 percent and shave off 0.10 per cent from the FY22 growth, as many states resort to restrictions to limit infections, a domestic rating agency said on Thursday. Curbs in various forms such as reducing the capacity of market/market complexes and night/weekend curfews to check human mobility/contact have already started in several states, which are impacting economic activities, India Ratings and Research said in a note.
The economy will bounce back pretty quickly once the third wave subsides, as per the report.
Market at 11 AM
Benchmark indices were trading higher with Nifty around 17900 and Sensex above 60000.
The Sensex was up 415.15 points or 0.70% at 60016.99, and the Nifty was up 122.80 points or 0.69% at 17868.70. About 2140 shares have advanced, 863 shares declined, and 84 shares are unchanged.
Gold Updates:
Gold inched up on Friday, hovering close to a two-week low hit in the previous session, after the chief of the World HealthOrganisation(WHO) said the Omicron variant cannot be considered 'mild', while stronger yields capped bullion's gains.
Benchmark US 10-year Treasury yields rose to its strongest level since March 2021, while 10-year TIPS yields hit highest since June 2021. Higher yields raise the opportunity cost of holding gold.
Won’t opt for equity conversion of interest on deferred spectrum, AGR dues: Bharti Airtel
Bharti Airtel will not opt for conversion of interest on deferred spectrum and adjusted gross revenue (AGR) dues into equity, it has informed the Department of Telecommunications (DoT).
“In furtherance to the earlier communication dated October 25, 2021 and in reference to the notification dated October 14, 2021 issued by the Department of Telecommunications (DoT) to the Company, we wish to inform you that the Company has confirmed to DoT that it will not avail the option of conversion of the interest on deferred spectrum and AGR dues into equity,” the telecom giant said in a regulatory filing.
Buzzing stock:
Zee Learn share price fell over 4 percent after Morgan Stanley offloaded 47.69 lakh shares in the company. Morgan Stanley Asia (Singapore) Pte – ODI on January 6 has offloaded 47,69,108 equity shares in Zee Learn at Rs 18.44 per share via open market transaction on the NSE.
IndusInd Bank (Client A/C) also sold 71,32,775 equity shares in Zee Learn at Rs 17.77 per share on the NSE, as per bulk deals data. However, Spring Ventures acquired 50 lakh equity shares in Zee Learn at Rs 19.57 per share.
BSE Realty index added 1 percent supported by the Indiabulls Real Estate, DLF, Oberoi Realty
Amit Pabari, MD at CR Forex Advisors:
Despite the ‘triple threat’ of policy tightening by the Fed- ‘Bond tapering’, ‘Rate hike’ and ‘Balance sheet reduction’, the Indian Rupee was seen trading firmer upto 74.32 levels as Reliance raised USD 4 bn in US Dollar Bonds in three tranches. This is the largest-ever foreign currency bond issuance from India, which was oversubscribed by 3X.
Today, the USDINR pair is expected to open around 74.40 levels and is expected to trade in the range of 74.20 to 74.70 with an upside bias. Globally, the US dollar index has been steady despite hawkish-fed minutes and the flattening of the US yield curve. However, today’s official job report will be watchful for further guidance on the number of rate hikes for 2022.
The recently released private payroll data was seen jumping sharply higher above 800K. Any figure near this would surely help DXY to retest its previous high of 96.90 levels. And that could be negative for the EM FX.
Nifty PSU Bank index added 1 percent led by the Indian Bank, SBI, Bank of Baroda, PNB
Rupee Opens
Indian rupee opened 14 paise higher at 74.35 per dollar on Friday against previous close of 74.49.
The US dollar advanced 0.15% yesterday amid a surge in US treasury yields and hawkish statements from US Fed officials. Officials feel that the Fed should hike rates sooner to fight stubbornly high inflation. Louis Fed President James Bullard said the Fed could raise interest rates as soon as March and is now in a good position to take even more aggressive steps against inflation, said ICICI Direct.
Rupee future maturing on January 27 depreciated by 0.08% on a strong dollar and surge in crude oil prices. Further, the rupee slipped on weak domestic markets and FII outflows, ICICI Direct added.
Market at 10 AM
Benchmark indices extended the early gains with Nifty above 17800 and Sensex above 60000.
The Sensex was up 480.03 points or 0.81% at 60081.87, and the Nifty was up 138.90 points or 0.78% at 17884.80. About 2226 shares have advanced, 680 shares declined, and 85 shares are unchanged.
Rakesh Jhunjhunwala raises stake in Escorts to 5.22%:
Rakesh Jhunjhunwala has increased his stake in Escortsfrom 4.75 percent in September 2021 to 5.22 percent in the quarter ended December 2021, as per the BSE shareholding pattern of December 2021.
Escorts was quoting at Rs 1,882.50, down Rs 1.25, or 0.07 percent on the BSE.
India likely to trim fiscal deficit target as Omicron cases rise: Report
India is aiming for a fiscal deficit of 6.3 percent to 6.5 percent of gross domestic product for the next financial year, a less ambitious target than previously planned as COVID-19 infections threaten the economic recovery, three government officials said.
Finance Minister Nirmala Sitharaman is due to unveil the 2022/2023 federal budget on February 1 and officials said the thinking was that sharp cuts in government expenditure could hurt growth prospects.
The plan now is to target a 30-50 basis point cut in the fiscal deficit for the next financial year, the officials involved in the discussions said. They declined to be named as they were not authorised to speak to media.
BSE Oil & Gas index rose 1 percent led by the ONGC, HPCL, BPCL
Titan Company business update:
The company witnessed strong demand across its consumer businesses and clocked 36% growth over the festive quarter last year, company said in its press release.
In the Q3FY22 (October-December) the company's Jewellery business revenue rose 37 percent, while Watches & Wearables revenue saw a growth of 28%, YoY.
Its Eye Wear segment revenue jumped by 27 percent, however other businesses revenue rose 44 percent, YoY.
The company has added 89 new stores across the segments in October-December quarter, with total stores stood at 1,935.
Titan Company touched a 52-week high of Rs 2,687.30 and was quoting at Rs 2,675.45, up Rs 78.70, or 3.03 percent on the BSE.
Reliance New Energy acquires stake in Sterling and Wilson Renewable Energy
Reliance New Energy Solar Limited (RNESL), a wholly owned subsidiary of the Reliance Industries has acquired, by way of off-market purchase, 1,84,00,000 equity shares of face value of Re 1 each at a price of Rs 375 per equity share aggregating Rs 690,00,00,000 from Shapoorji Pallonji and Company Private Limited, one of the promoters of Sterling and Wilson Renewable Energy Limited (SWREL).
Consequent to such acquisition, RNESL holds 25.16% of the total paid-up equity share capital of SWREL.
Reliance Industries was quoting at Rs 2,440.70, up Rs 24.10, or 1 percent on the BSE.
Lupin launches Molnupiravir in India as 'Molnulup' for COVID treatment
Lupin announced the launch of Molnupiravir in India under the brand name Molnulup. This drug has been given emergency use authorization by the Drug Controller General of India (DCGI) for treatment of adult patients with Covid19, with SpO2 > 93%, and the ones who have a high risk of progression of the disease including hospitalization, company said in its release.
Lupin was quoting at Rs 923.55, up Rs 0.05, or 0.01 percent on the BSE.
