Market At Close | JSW Steel, UltraTech, Shree Cement top blue-chip losers
Tech Mahindra, Adani Ports and HDFC were also among the top laggards in the Nifty50 pack. A total of 35 stocks in the index were in the red at the close.
On the other hand, UPL, IndusInd Bank, Bajaj Auto, Bharti Airtel, Maruti Suzuki and Eicher Motors were among the top gainers.
Here’s how the 30-scrip basket fared:
Closing Bell | Sensex down 621 points at 59,602, Nifty below 17,750
Both headline indices closed one percent lower, though a good distance away from their intraday lows. The 30-scrip index shed 621.3 points to end at 59,601.8, and the broader Nifty50 benchmark settled at 17,745.9, down 179.4 points from its previous close.
Losses across sectors, led by financial, IT and oil & gas stocks, pulled the headline indices lower. (Read more on the closing bell)
India will see capex cycle as interest rates remain very low: Edelweiss MF
Edelweiss Mutual Fund told CNBC-TV18 India will see capex cycle as interest rates remain very low globally as well as in the country. 2022 will be a year of policy normalisation after the COVID era, it said.
Capex in the private sector is expected to be three times than the public sector in the coming years, said Edelweiss Mutual Fund, which is structurally bullish on the IT sector.
Paytm shares drop to fresh low, discount to issue price reaches 41%
Paytm parent One97 Communications’ shares continued to fall for a third straight day to hit an all-time low. The stock dropped more than two percent to Rs 1,262.1 on BSE, a discount of 41.3 percent to the issue price of Rs 2,150. Paytm is one of the worst Dalal Street debutants of 2021.
One97 shares have completed seven weeks of trading on stock exchanges BSE and NSE following a weak listing on November 18. (Read more on Paytm stock price)
Auto Sales | Jaguar Land Rover UK December sales down 50%
Jaguar Land Rover’s auto sales in the UK came in at 4,002 units in December, as against 7,934 units in the corresponding period a year ago.
–Jaguar UK December sales down 60.6% YoY at 1,333 units
–Land Rover UK sales down 41.3% YoY at 2,669 units
Bharti Airtel, Vodafone Idea, Indus Tower shares jump; CLSA raises target prices
Bharti Airtel and Vodafone Idea shares gained as telecom stocks were in focus after CLSA said it expects the sector to grow further this year. The brokerage said the sector’s revenue grew 15 percent on a year-on-year basis in 2021.
Bharti Airtel shares jumped as much as 2.9 percent to Rs 720.5 apiece on BSE, after CLSA said the private sector telecom company is its top pick in the sector. The brokerage raised its target price for Bharti Airtel to Rs 910 from Rs 863.
Vodafone Idea shares gained as much as 4.3 percent to Rs 15.8 apiece on BSE. The brokerage raised its target price for Vi to Rs 16 from Rs 11. It also said the government’s mega relief package last year averted a financial crisis at Vodafone Idea. (Read more on telecom stocks)
Exclusive: Sources say Byju’s looking to acquire majority stake in Zee Learn
Byju’s is looking to acquire a majority stake in Zee Learn, sources told CNBC-TV18. The talks between and Zee Learn are at a preliminary stage, they said.
Zee Learn denied having any dialogues with Byju’s, calling the news speculative in nature. The company does not comment on such matters, it said.
Byju’s may look to acquire a stake of nearly 51 percent in Zee Learn, and the proposed acquisition could be through a mix of a preferential issue and sale of stake by shareholders, according to the sources. (Read more)
IT stocks extend losses to 2nd day; Zensar Tech shares down 5%, Infosys, TCS slip over 2%
Information Technology (IT) stocks failed to impress investors for the second straight day on Thursday. The sector gauge BSE IT declined more than 2 percent intraday with Zensar Technologies and Persistent Systems Ltd being the top laggards in the tech stocks pack. Zensar Technologies shares slipped nearly 5 percent intraday to Rs 495.40, Infosys slipped 2.4 percent during the day to an intraday low of Rs 1,800, Tata Consultancy Services stock too was in the negative territory and fell 2.32 percent to an intraday low of Rs 3,771.35.
Bond yields rise to two-year highs, here’s why
India’s 10-year government bond yield surged to a two-year high of 6.54 percent on Thursday, 06 January 2022 and bond market watchers expect them to stay high, unless the RBI intervenes. Yields were hovering around 6.5 percent earlier this week, but stabilised on Wednesday as crude oil prices fell. They have started inching up again.
One should not be very aggressive in these markets: Bhavin Shah, Founder & Portfolio Manager, Sameeksha Capital
The reason to be a little bit cautious on the market is that while the valuations continue to remain high, limiting the number of opportunities available. From the US Fed, their story continues to change from falling inflation transitory to today’s very hawkish comments on the upcoming action. So, obviously, if there is further pressure on interest rates there, it could also affect the Indian markets in that sense. But within India also, we do also have some bit of inflationary pressures versus somewhat weak demand that we have seen in some pockets, especially rural demand. So, I think it requires some bit of caution. One should not be very aggressive in these markets.
Market Watch | Buy Motherson Sumi, Indiabulls Housing Fin: Himanshu Gupta of Globe Capital
– Buy Motherson Sumi Systems with a stop loss of Rs 227 and a target of Rs 242-245.
– Buy Indiabulls Housing Finance with a stop loss of Rs 217 and a target of Rs 232-235.
Krishna Kumar Karwa, managing director, Emkay Global, expects 2022 to be a challenging and volatile year for equities. He explained that a reasonable return of 12-15 percent can be expected over the next 12-18 months. On autos, Karwa expects passenger vehicles (PVs) and auto ancillaries focused on electric vehicles (EVs) to do well. According to him, both passenger vehicles and commercial vehicles (CVs) could see a cyclical uptick.
RBL Bank up 2% on better loan growth
RBL Bank shares advanced over 2 percent intraday on January 6 after the company reported better loan growth for the quarter ended 31 December 2021. RBL Bank’s gross advances jumped 5 percent year-on-year to Rs 59,941 crore (provisional) in Q3FY22 from Rs 57,092 crore in the same quarter of the previous fiscal year. Sequentially, it was up 3.5 percent from Rs 57,939 crore in Q2FY22.
Volatility of Bitcoin may be connected to the gain of Altcoins: Edul Patel, CEO, and Co-founder, Mudrex
Bitcoin’s price fell to US$42,000, which traded at its lowest in more than a month in the past 24 hours. The next normal floor would be US$40,000. The volatility of Bitcoin may also be connected to the gain of Altcoins. Once things on the Altcoins settle, Bitcoin will gradually gain momentum in 2022, said Edul Patel, CEO, and Co-founder, Mudrex- a global crypto trading platform.
Kunal Shah, BFSI Analyst at ICICI Securities likes Axis Bank, State Bank of India (SBI) and HDFC Bank from the banking space. Shah also likes Federal Bank. Within the midcap space, Federal Bank is the top pick, he said. He expects to see 9 percent credit growth by the end of current fiscal year, FY22.
Reliance Industries raises $4 billion in US dollar bonds, largest such issue by an Indian corporate
Reliance Industries Ltd (RIL) on Thursday said it has raised $4 billion in a three-tranche US dollar bond issuance in what is the largest-ever foreign currency bond issuance from India. The bond issue was subscribed over three times with orders mainly from Asia and the US. Billionaire Mukesh Ambani-led oil-retail-telecom conglomerate informed exchanges in a filing that it has raised $1.5 billion in a 10-year tranche, $1.75 billion in a 30-year and $750 million in a 40-year deal. The proceeds will mainly be used for refinancing existing borrowings.
Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
UPL stock rises 2%; CLSA hikes target price, EPS estimate
Shares of UPL rose more than two percent on Thursday after CLSA’s upbeat commentary. The brokerage firm also hiked its target price and raised its EPS estimates, which has supported the upswing in UPL’s stock. The stock was the top gainer on Nifty50. At 10:43 am, UPL’s shares were trading 2.2 percent higher at Rs 781.25 on BSE. The stock has been gaining for the last two days and has risen over 2 percent during the period.
Future Group stocks recover after Delhi HC stays Amazon-Future Singapore arbitration
Shares of Future Group recovered amid a market fall on Thursday after the Delhi High Court delayed the Amazon-Future arbitration over the appeals filed by Future Retail and its promoters. While Future Retail rose as much as 8.5 percent, Future Consumer was up 9.3 percent. Future Lifestyle gained as much as 13.8 percent and Future Enterprises Ltd was up 9.9 percent. Future Supply Chain Solutions Ltd was trading 9.5 percent higher as well on Thursday.
Paytm shares hit new low
Paytm parent One97 Communications’ shares fell as much as 2.1 percent to hit a fresh low of Rs 1,262.1 apiece, a discount of 41.3 percent to the issue price of Rs 2,150.
Alembic Pharma gets US regulator’s nod for anti-Parkinson’s drug
Alembic Pharma has received approval of the US Food and Drug Administration for the Entacapone tablet, an anti-Parkinson’s drug.
Alembic Pharma shares jumped as much as 1.3 percent to Rs 826.9 apiece on BSE after the announcement. At 12:45 pm, the stock was up 0.6 percent at Rs 821 apiece.
Business Update | Bajaj Allianz General Insurance gross direct premium at Rs 1,123.6 crore in December
Here are some highlights of Bajaj Finserv‘s business update for December:
Bajaj Allianz Life Insurance individual single premium at Rs 22.9 crore
Bajaj Allianz Life Insurance individual non-single premium at Rs 459.1 crore
Bajaj Allianz Life Insurance group single premium at Rs 585.3 crore
Wockhardt board approves issuance of equity shares of up to Rs 1,000 crore through rights issue
Wockhardt shares were up 1.4 percent at Rs 442.7 apiece on BSE after the news.
Reliance Industries raises $4 billion in US dollar bonds in 3 tranches
Reliance Industries Ltd (RIL) said it had raised $4 billion in a three-tranche US dollar bond issuance in what is the largest-ever foreign currency bond issuance from India. The bond issue was subscribed over three times with orders mainly from Asia and the US. (Read more)
Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Wockhardt board likely to consider various fund raising options at meet today
Wockhardt’s board will be meeting on Thursday to consider fundraising options. The company is in the process of evaluating and negotiating various fundraising options, including issuance of shares. Negotiations are at initial stages and if found feasible, they will be subject to board approval before finalisation. (Read more on Wockhardt board meeting)
Wockhardt shares were up 1.5 percent at Rs 443.1 apiece on BSE.
Aurobindo Pharma launches Molnupiravir brand Molnaflu in India
Aurobindo Pharma shares moved within a tight range around the flatline. At 11:35 am, the stock was down 0.1 percent at Rs 719.9 apiece on BSE.
RBL Bank shares rise over 2%
RBL Bank shares were up 2.1 percent at Rs 135.5 apiece in late morning deals on BSE. Earlier in the day, the stock rose as much as 2.5 percent to Rs 136.1 apiece.
RBL Bank gross advances up 5%
RBL Bank said its gross advances as of December 31 stood at Rs 59,941 crore, up five percent compared with the corresponding period a year ago. Its gross advances were up 3.46 percent sequentially. They had stood at Rs 57,939 crore as of September 30.
–Wholesale at 47 percent vs 45 percent QoQ (wholesale loan growth at eight percent QoQ)
–Retail at 53 percent vs 55 percent QoQ (retail book flat QoQ)
–Cash deposit ratio improves by 475 bps to 81.4 percent vs 76.65 percent QoQ (this could keep NIM stable or improve it)
UPL rises 2%; CLSA raises target price, EPS estimate
UPL shares rose more than two percent after CLSA raised its target price for the stock to Rs 1,100 from Rs 1,060. The brokerage also raised its EPS estimate for UPL for FY22-24 by 2-3 percent to factor in spot currency assumptions.
CLSA maintained its ‘buy’ rating for UPL.
Ventura Securities initiates coverage on Salzer Electronics with ‘buy’ rating
The brokerage has assigned a target price of Rs 388 per share to the stock for the next 24 months. Ventura expects SALZER’s revenue to grow at a CAGR of 21.2 percent, EBITDA at 24.1 percent and net earnings at 38.4 percent over the the period of FY21-24E. It sees Salzer Electronics’ EBITDA and net margins improving by 76bps to 11 percent and by 168 bps to 5.1 percent respectively.
Salzer Electronics shares were up 1.6 percent at Rs 197.7 apiece on BSE in late morning deals.
Buy L&T, SBI, Ambuja Cements: Ashish Chaturmohta
Here are three trading calls from Ashish Chaturmohta, Director Research at Sanctum Wealth Management:
–Buy Larsen & Toubro for a target price of Rs 2,030-2,050 with a stop loss at Rs 1,920
–Buy SBI for a target of Rs 515 with a stop loss at Rs 484
–Buy Ambuja Cements for a target of Rs 405-408 with a stop loss at Rs 388