Closing Bell: Nifty around 21,550, Sensex gains amid volatility; banks drag

Benchmark indices ended higher for the second consecutive session on January 9 amid volatility with Nifty around 21,550. At close, the Sensex was up 30.99 points or 0.04 percent at 71,386.21, and the Nifty was up 31.80 points or 0.15 percent at 21,544.80.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices/ for all the global market action.

Prashanth Tapse, Senior VP (Research), Mehta Equities

Markets gyrated sharply in volatile trades as key indices erased most of their early gains to end marginally higher amid selective buying in auto, realty, metals and oil & gas stocks, whereas banking stocks fell the most. A sharp jump in crude oil prices and fresh uptick in US bond yields have made investors jittery, which dampened the sentiment.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:

The Nifty witnessed an extremely volatile day of trade today. It witnessed positive price action during the first half while a sharp fall during the second half took away all the gains and the Nifty ultimately closed marginally in the green up ~32 points. Amid the volatile price action the Nifty is still within the broad range 21850-21500. On the way down multiple support parameters in the form of the 20 day moving average ( 21453) and 21406 (50% fibonacci retracement level) shall provide cushion in case of a deeper correction.

Bank Nifty witnessed a sharp decline and has also breached the previous day low (47387) which is a sign of weakness. However the Bank Nifty is approaching crucial support placed in the range (47000 – 46900) and until this range is decisively breached on the downside the structure is still in favor of the Bulls.

Ajit Mishra, SVP - Technical Research, Religare Broking

Markets witnessed a roller coaster ride on Tuesday and ended almost flat, in continuation to prevailing consolidation phase. Firm global cues triggered a gag-up start in Nifty, which further strengthened with renewed buying in select heavyweights however a sharp cut in latter half trimmed the gains. Eventually, it settled at 21544.85; up by 0.15%. Among the key sectoral indices, realty, auto and pharma posted decent gains while media, banking and financials ended lower. Meanwhile, the boarder indices also traded volatile and closed with modest gains.

The rebound attempt in Nifty shows that bulls are not in mood to loosen their grip easily and supportive global cues could prompt next leg of up move. Meanwhile, participants should limit trades and prefer hedged bets.

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities

The Bank Nifty index witnessed continued dominance by bears as selling pressure intensified from higher levels. The index is currently facing a strong hurdle at the 48000 mark, where a significant buildup in open interest is observed on the call side. The immediate support for the index is positioned at the 47000-46900 levels. A breach below this support zone is likely to trigger aggressive selling pressure, potentially leading to further downside momentum.

Vinod Nair, Head of Research, Geojit Financial Services:

Positive sentiments in the Indian IT sector fuelled by a US tech rally and demand on emerging technologies, overshadowed the anticipated muted Q3 results of the sector. Auto & realty continued to remain favourites on account of strong demand. Market optimism about potential softening of US inflation is driving expectations of near-term rate cuts, bolstering overall sentiment. But in-between profit booking is emerging due to mixed cues from Asian markets as well high valuation concerns.

Aditya Gaggar Director of Progressive Shares

Indian equities moved in tandem with their strong global counterparts and started the session higher at 21,650. As the day progressed, the Index was seen compounding its gains but towards the end, a steep decline in the banking stocks dragged the Index lower to settle the day at 21,544.85 with gains of 31.85 points.

With gains of 2.52%, the Realty sector was the top gainer followed by Pharma and Auto; and on the flip side, Media was the major laggard. BankNifty and PSU Banking sector also ended the day in red. Looking at the larger picture, the Index is oscillating in a range of 21,500-21,800, breakout in either direction will provide clarity.

Rupee Close:

Indian rupee ended flat at 83.11 per dollar against previous close of 83.13.

Market Close: Benchmark indices ended higher for the second consecutive session on January 9 amid volatility with Nifty around 21,550.

At close, the Sensex was up 30.99 points or 0.04 percent at 71,386.21, and the Nifty was up 31.80 points or 0.15 percent at 21,544.80. About 1984 shares advanced, 1330 shares declined, and 71 shares unchanged.

Hero MotoCorp, Adani Ports, SBI Life Insurance, Apollo Hospitals and Adani Enterprises are among the top gainers on the Nifty, while losers were Nestle India, Britannia Industries, Asian Paints, Bajaj Finserv and HDFC Bank.

Among sectors, except bank and FMCG, all other indices ended in the green with auto, healthcare, capital goods, metal, power and realty up 0.5-2.5 percent each.

BSE Midcap index ended flat, while Smallcap index up 0.3 percent.

Stock Market LIVE Updates | Prestige Estates Q3 Business Update:

During the first nine months of the year FY24, the Group registered Sales of 3163,334 mn (up by 81% yoy) and Collections of 384,788 mn (up by 20% yoy).

During Q3 FY24, the Group has registered Sales of 353,261 mn (up by 111% yoy) and Collections of 331,163 mn (up by 36% yoy).

Stock Market LIVE Updates | Jefferies View On Chemicals  

-Specialty Chem7ical is buffeted by weak demand and elevated chinese exports
-Expect demand recovery in H2FY25 
-PI Industries is top pick with healthy volume growth outlook and reasonable valuation
-Downgrade SRF to underperform as we expect business recovery to lag recent stock rally 
-Downgrade SRF to underperform as risk-reward is unfavourable
-Stay on sidelines in Navin Fluorine as await the onboarding of the new MD

Stock Market LIVE Updates | Dr Reddy's Laboratories clarifies on voluntary recall of one specific batch of Tacrolimus capsules

Dr Reddy's Laboratories informed that on December 15, 2023, Dr. Reddy’s Laboratories Inc., wholly owned subsidiary of the company, initiated a limited voluntary recall of one specific batch of Tacrolimus capsules, 1 mg, from the U.S. market as a precautionary measure.

The batch contains distributed quantity of 8,280 bottles of 100 capsules each. The single-batch recall was voluntarily initiated by the Company due to a product complaint for one foreign capsule in a single bottle (one 0.5 mg Tacrolimus capsule found in a bottle of 1 mg Tacrolimus capsules).

Tacrolimus capsules are immunosuppressants. This recall will have negligible impact on patient safety. The company continues to supply the product to the U.S. market.

Stock Market LIVE Updates | Jefferies On Real Estate  

-Low inventories & Mid-cycle affordability should support approximately 20% residential sales growth in 2024
-Offices are bottoming out as SEZ regulation changes lower REIT vacancies 
-Offices are bottoming out as domestic demand rises
-Cut cap-rate assumption by 50 bps, raising mindspace REIT to buy
-Developer stocks doubled in 2023 taking sector to peak multiples 
-Expectations are high and easy scaleup is now behind
-Downgrade prestige to underperform, Sobha to hold

Sensex Today | Nifty Bank index down 0.3 percent dragged by AU Small Finance Bank, IDFC First Bank, HDFC Bank:

Sensex Today | Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas:

Indian Rupee appreciated by 0.05% on positive domestic markets and overnight decline in crude oil prices. FII inflows also supported Rupee. However, a recovery in US Dollar today capped sharp gains. US Dollar declined on Monday ahead of US inflation data. Expectations of a rate cut in March 2024 have also eased. Odds of a rate cut in March 2024 fell to 64% from 89% last week.

We expect Rupee to trade with a slight negative bias on expectations of a recovery in the US Dollar and weak European markets. Asian currencies too lost initial gains which may weigh on rupee. Crude oil prices have recovered from early losses and a trading around a percent higher from yesterday’s close. However, positive sentiments in domestic markets and fresh FII inflows may support Rupee at lower levels. Investors may remain cautious ahead of inflation data from India and US later this week. USDINR spot price is expected to trade in a range of Rs 82.80 to Rs 83.50.

Stock Market LIVE Updates | HSBC On Financials 

-2024 will likely bring two major trade-offs for banks include growth versus NIM & investments versus RoA 
-NBFCs to benefit as liquidity tightness eases
-Rate cuts commence and overall macro remains favourable 
-Prefer Axis Bank & IndusInd Bank among banks
-Prefer Shriram Finance, L&T Fin Holdings & Chola Investment Finance among NBFCs, all in buy call
-Upgrade LIC Housing Finance to hold

Sensex Today | Market at 3 PM

The Sensex was up 137.06 points or 0.19 percent at 71,492.28, and the Nifty was up 56.30 points or 0.26 percent at 21,569.30. About 1948 shares advanced, 1359 shares declined, and 71 shares unchanged.

Sensex Today | Dollar steady, bitcoin holds gains before ETF approval deadline

A decline in U.S. consumer inflation expectations kept the dollar rally in check on Tuesday as traders reaffirmed their bets for a slew of Federal Reserve rate cuts this year.

In cryptocurrencies, bitcoin held near its strongest level since April 2022 on growing anticipation the Securities and Exchange Commission will imminently approve spot bitcoin exchange-traded funds (ETF).

IT earnings can grow 15% in 2024 as AI spending rises, says Vikas Gupta of Omniscience

Indian IT companies will likely beat the predictions of continued weakness and see strong earnings growth in 2024 on AI spending boost, Omniscience Capital CEO and Chief Investment Strategist Vikas Gupta has said.

India and US tech companies are expected to have a 15 percent earnings growth during the year, Gupta said in an interview to Moneycontrol.

A majority of analysts expect weakness to continue for the Indian IT sector, which has been hit hard as companies in the US and Europe, their biggest markets, cut spendings.

Accenture, whose bulk of the workforce is based in India, gave a -2 to 2 percent revenue growth guidance for the quarter ending in February. Read More

Stock Market LIVE Updates | Tiger Logistics board approves stock split in the ratio of 1:10

Stock Market LIVE Updates | UBS on Bajaj Auto
Sell call, target price at Rs 5,600 apiece
Buyback announced at Rs 10,000/share, promoters expected to participate
Co will buyback 1.41% of total eq shrs on proportionate basis from existing shareholders
Buyback price is pretty steep but promoters are also expected to participate
Promoters’ participation implies the promoter group will potentially receive Rs 2,200 cr
Stock has already seen a run-up 6%
Stock run-up on news of bd meet announcement for buyback of shares on Jan 3

Sensex Today | Tata Power arm signs 2 MoUs with Tamil Nadu Government

Tata Power Renewable Energy Limited (‘TPREL’), Tata Power subsidiary, has signed two Memoranda of Understanding with the Government of Tamil Nadu to support in the development of the state's renewable energy landscape and accelerate India's clean energy transition.

Tata Motors Q3 Group Global Wholesales up 9% YoY at 3.38 lakh units and Global CV Wholesales & Tata Daewoo range up 1% YoY at 98,679 units.

Sensex Today | Indian Bank gets RBI Nod to exercise call option on Tier 2 bonds worth RS 600 crore

Indian Bank has received requisite prior approval of RBI for exercise of Call Option on captioned Basel III Tier 2 Bonds Tranche C aggregating to Rs 600 crore.

Sensex Today | Oil tries to regain footing as Middle East crisis, OPEC supply in focus

Oil prices steadied on Tuesday after sliding in the previous session, as markets weighed Middle East tensions against demand worries and rising OPEC supply.

Brent crude futures rose 17 cents, or 0.2%, to $76.29 a barrel, while U.S. West Texas Intermediate crude futures inched up 0.1%, or 5 cents, to $70.82 a barrel.

Sensex Today | Gold rebounds from three-week low on dollar retreat

Gold prices ticked up on Tuesday from a three-week low, helped by a softer dollar after an official U.S. report showing that consumers expected lower inflation boosted hopes for interest rate cuts from the Federal Reserve.

Spot gold was up 0.4% at $2,035.06 per ounce, as of 0737 GMT, after hitting its lowest level since Dec. 18 on Monday. U.S. gold futures rose 0.4% to $2,041.20 per ounce.

Sensex Today | Prabhudas Lilladher View Capital goods sector:

Capital goods under coverage universe to report healthy performance in Q3FY24 led by 1) continued execution of strong opening order books, 2) robust demand/orders/volumes in domestic market, and 3) traction in key export markets such as Middle East, Americas, Africa etc. 

Overall, brokerage house expects Revenue/Adj. PAT growth of ~16.6%/22.0% YoY (13.5%/14.1% YoY ex-L&T). 

Margin guidance, European demand outlook, order/enquiry pipeline and impact of elections on domestic demand/orders will be key monitorables. 

Top picks are L&T, Siemens, ABB, Triveni Turbine, and Praj Industries.

Sensex Today | BSE Realty index up 2 percent led by Godrej Properties, DLF, Oberoi Realty:

Stock Market LIVE Updates | Morgan Stanley View On Tata Motors

-Overweight call, target raised to Rs 890 per share
-JLR posted wholesale volumes of 1.01 lakh units, +27% YoY, broadly in-line with estimate
-JLR could be next big re-rating driver for Tata motors if performance is steady
-Q3 mix remained strong, with RR, Sport, Defender forming 62% of wholesale
-76% of order backlog vs 77% in Q2
-Company did not comment on FCF, but believe JLR’s FCF momentum will continue

Stock Market LIVE Updates | Zee clarifed on Sony merger plan

Zee today issued a statement calling the news report of Sony's plan to terminate merger as factually incorrect. Zee Ent in a statement to stock exchanges said that the company is committed to the merger and is trying to work towrds closing the deal with Sony.

Stock Market LIVE Updates |IRB Infra soars to 52-week high as toll collections jump 26% in December

Shares of IRB Infrastructure Developers soared 8 percent to hit a 52-week high of Rs 45.55 on January 9 after the company reported a strong growth in toll collections for December.

The company collected Rs 488 crore in toll in December, up 26 percent from Rs 388 crore in the same month of the previous fiscal.

Polycab India | I-T department claims tax evasion of Rs 200 crore, quoting Sources, reported CNBC-TV18.

Stock Market LIVE Updates | Antique View On TVS Motor Company

-Downgrade to sell, target Rs 1,729 per share
-Valuations running ahead of fundamentals
-Build in 12.5% volume CAGR over FY23–26
-See limited scope for further improvement in margin
-Limited scope in margin improvement as RM cost benefits are largely factored in
-Limited scope in margin improvement as EV expansion is set to weigh down on profitability
-Find valuation of 40x 1-year forward EPS exorbitant & that limits stock upside