Kanika Agarrwal, Co-founder and Chief Investment Officer, Upside AI
Volatile day for the markets today. Nifty went up led mainly by financials while the broader market was flat. For the next quarter, we remain bullish on value stocks and small caps. Key trends we are tracking are vaccine rollout, reaction to new strains and government commentary on the budget. Given the year-end and lower volumes, continue to expect volatile days going into the new year with pockets of stocks driving movement.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The markets were a tad shy of hitting the 14,000 levels but that should be achieved sooner than later. The Nifty can climb towards 14,100 which should be the next level of resistance. The week’s support is at 13,600 so traders can utilize intra-day corrections to initiate long positions for higher targets.
Market At Close
Sensex & Nifty Post Record Close For 14th Time This Month
Financials Lift Market With HDFC, HDFC Bank & ICICI Bank Being Top Contributors
Nifty Gains 59 Points To 13,933 & Sensex 259 Points To 47,613
Nifty Bank Advances 442 Points To 31,323 While Midcap Index Slips 23 Points To 20,696
Market Breadth Slightly In Favour Of Declines; Advance-Decline Ratio At 1:1
6 Of Top 10 Nifty Gainers Are Financials; IndusInd, Axis, HDFC, ICICI Bank Top Gainers
Tata Motors Snaps 4-day Gaining Streak, Closes Tuesday Session 1.6% Lower
CAMS Gains For 3rd Straight Day, Closes Above `1,800/Sh
Dish TV Remains Under Pressure After Govt’s Notice Of `4,164 Cr For Licence Fee
Burger King Falls For 3rd Straight Day After Rising In Three Previous Sessions
BEML Fails To Hold Gains While CONCOR Gains Over 1% On EoI Reports
Closing Bell | Indian equity benchmark indices, Sensex and Nifty ended higher Tuesday led by gains in banks, financial and IT stocks. The Sensex gained 0.55 percent or 259.33 points to end at 47,613.08, while the Nifty settled 59.40 points or 0.43 percent higher at 13,932.60. Broader markets underperformed the benchmarks with Nifty Midcap100 and Nifty Smallcap100 indices ending in the red. Among sectors, Nifty Private Bank gained the most followed by Nifty Financial Services, Nifty IT and Nifty PSU Banks. Meanwhile, Nifty Metal, Nifty Media, Nifty Pharma and Nifty Realty ended with losses.
Market Watch: Shrikant Chouhan, Kotak Securities
Cipla which is currently trading above the consolidation mark of Rs 820-825, the next level to watch out for is between Rs 875-880. We can keep stop loss at Rs 810 and look to buy Cipla at current levels.
IRCTC currently is forming some base building formation close to Rs 1,420-1,430 levels and the best part is that the stock is ready to move to the levels of Rs 1,550-1,560 based on its intraday charts. So, it is a buy at current levels with a stop loss at Rs 1,370.
SAIL turnaround a challenging experience in 36-yr-long career, says outgoing Chairman
The turnaround of SAIL from several quarters of losses was one of the most challenging experience, said Anil Kumar Chaudhary, the outgoing Chairman of the country’s largest steel maker. The Chairman said he also wants to see SAIL paying back at least 50 percent of its debt in the near future.
Chaudhary who had joined SAIL as a Junior Manager in 1984 would be superannuating from the top post on December 31, 2020, after serving the company for almost 36 years in various roles. Read here.
Kotak Institutional Equities positive on SBI Cards; initiates coverage with target price of Rs 900
Kotak Institutional Equities has initiated coverage on the SBI Cards with a target price of Rs 900. They are positive on SBI Cards on the back of strong revenue growth from the underpenetrated payments play.
A highly profitable lending book and a strong parentage also seen as a benefit for the company. Read here.
Glenmark Pharma launches Remogliflozin, Vildagliptin in India
Glenmark Pharmaceuticals has launched a fixed dose combination (FDC) of its novel, patent protected and globally researched Sodium Glucose Co-Transporter Inhibitor (SGLT2i) – Remogliflozin Etabonate and another widely used DPP4 inhibitor (Dipeptidyl Peptidase 4 inhibitor) – Vildagliptin, in India.
The fixed drug combination is indicated for the management of Type 2 diabetes. The combination will contain Remogliflozin (100 mg) + Vildagliptin (50 mg) in a fixed dose and must be taken twice daily to improve glycemic control in patients. Glenmark has launched the same under two brand names Remo V and Remozen V.
Allied Digital Services LLC, (USA) bags multi-rear deals worth TCV of $ 21.8 million
Allied Digital Services LLC, USA Company of Allied Digital Services Ltd has bagged 3 multi-year prestigious services deals with collective total contract value of $21.8 million (Rs 160 crore) from leading customers across Healthcare, Finance and Automobile segments in this quarter.
Allied Digital USA will transform the Infrastructure Management, Edge Computing and User Computing across a wide range of technology platforms, operations and geographies, the company said.
Shares of Allied Digital Services were locked at upper circuit of 5 percent at Rs 33.95 apiece on the BSE.
Lupin launches Mycophenolate Mofetil tablets
Pharma major Lupin announced launch of Mycophenolate Mofetil Tablets USP, 500 mg, after Lupin’s alliance partner Concord Biotech received approval for its ANDA from the United States Food and Drug Administration.
Mycophenolate Mofetil Tablets USP, 500 mg, are the generic equivalent of CellCept® Tablets of Roche Palo Alto LLC, indicated for the prophylaxis of organ rejection in recipients of allogeneic kidney, heart or liver transplants, and should be used in combination with other immunosuppressants.
Mycophenolate Mofetil Tablets USP (RLD: CellCept®) had an annual sales of approximately USD 87 million in the US.
Larsen & Toubro | L&T Construction has bagged a contract in the range of Rs 1,000-2,500 crore for Water & Effluent Treatment business.
ICICI Bank acquires 9.09% stake in ed-tech platform Myclassboard Educational Solutions
Private sector lender ICICI Bank on Tuesday said it will acquire 9.09 percent stake in educational technology platform Myclassboard Educational Solutions Pvt Ltd for cash consideration of Rs 4.5 crore. ”ICICI Bank has entered into an agreement… in relation to an investment in Myclassboard Educational Solutions Pvt Ltd (MESPL),” the private sector lender said in a regulatory filing.
MESPL offers an online school management platform and reported a turnover of Rs 12 crore in FY 2020. ICICI Bank said it will acquire 9.09 per cent stake in MESPL for cash consideration of Rs 4.5 crore.
”Post investment, ICICI Bank will hold 9.09 percent stake in MESPL through acquisition of 100 equity shares and 1,04,890 cumulative compulsorily convertible preference shares on a fully diluted basis,” it added. The transaction is expected to be completed by end of February 2021.
Biggest unlock will be seen in financials; real estate to do well: Max Life’s Mihir Vora
There is a growing consensus that the dollar will continue to be weak, said Mihir Vora, Director and CIO of Max Life Insurance on Tuesday. The biggest unlock will be seen in financials and they will ultimately reflect the right and wrong in the economy, he added. Speaking in an interview with CNBC-TV18, Vora said, “We have been underweight but we have been reducing our underweight positions significantly over the last couple of months because they will reflect what is right or wrong with the economy.” Vora expects tractor segment to remain strong and recovery play will be seen in commercial vehicles segment. More here
IT sector revenue to remain robust, strong margins to continue: Avendus Capital
The earnings growth of the Indian IT sector is likely to continue going ahead on the back of strong business momentum, said Vaibhav Sanghavi, Co-CEO at Avendus Capital Alternate Strategies. Speaking to CNBC-TV18, Sanghavi said, “We have seen some very brilliant deal wins for the frontline IT companies to an extent showing the cloud migration has been lesser-played than actually what it is and we think that revenue forecast for the next couple of years on the IT companies is likely to be robust.” Looking at a business momentum, he added, it looked like this earnings uptake story along with the margin strength were likely to continue. Meanwhile, the markets have shown buoyancy in the last quarter because of the robust foreign capital inflows. More here
Sources say Centre’s FY21 fiscal deficit is seen closer to 8% on revenue gap, stimulus measures.
Sources say Centre’s FY21 fiscal deficit is seen closer to 8% on revenue gap, stimulus measures. Current Fiscal Responsibility Budget Management (FRBM) law may have to be reviewed pic.twitter.com/HOPWwccRe1
— CNBC-TV18 (@CNBCTV18Live) December 29, 2020
Suryoday Small Finance Bank recieves go ahead to launch IPO
Suryoday Small Finance Bank has received market regulator Sebi’s consent to launch an initial public offering (IPO). The company is the latest addition to the IPO list after the public issue market has had a tremendous year despite the COVID-19 pandemic. The bank will utilise the net proceeds from the fresh issue towards augmenting its Tier-1 capital base to meet future capital requirements. The draft papers informed that the IPO comprises fresh issuance of 1.15 crore shares and an offer for sale (OFS) of up to 84.66 lakh shares by existing shareholders.
Sovereign gold bonds open for subscription; here’s what makes it an attractive investment
The ninth tranche (IXth) of the Sovereign Gold Bond (SGB) scheme for 2020-21 opened for subscription on Monday. The issue price for the same has been fixed at Rs 5,000 per gram of the yellow metal. Online subscribers can, however, secure these bonds at a discount of Rs 50 per gram. This subscription of bonds will close on January 1, 2021, and the settlement date for the same is January 5, 2021, as per the Reserve Bank of India (RBI). According to Nish Bhatt, founder and CEO, Millwood Kane International, the government has seen good demand for SGB throughout the year. As per an estimate, the RBI has helped the government raise nearly Rs 23,000 crore in the past 5 years. “SGB is one of the favorite routes for retail investors looking to take exposure in gold. There is a dual benefit in investing in SGB as investors stand to gain 2.5 percent per annum fixed interest on their investment and the rise in the value of gold once the bond is redeemed,” he explains. More here
Former Economic Affairs Secy Atanu Chakraborty tipped to be next HDFC Bank Chairman
The board of HDFC Bank, India’s largest private sector lender, has approved the appointment of Atanu Chakraborty, former Economic Affairs Secretary as its part-time chairman, sources have told CNBC-TV18. The board submitted Chakraborty’s name for the position to the RBI on December 28 for approval, it is further learnt. Chakraborty is a career IAS officer, and last served as the Economic Affairs Secretary in the Finance Ministry. When contacted, Chakraborty declined to offer a comment while HDFC Bank is yet to respond.
.@MORTHIndia (Road & Transport Min) proposes to make dual front air bags mandatory for new models from April 1, 2021 & for existing models from June 1, 2021.
Sources say the move could increase price of entry level cars by Rs 5,000-8,000. pic.twitter.com/Lmgi7xE2M5
— CNBC-TV18 (@CNBCTV18Live) December 29, 2020
HDFC Bank | Former Economic Affairs Secretary Atanu Chakraborty is tipped to be next Chairman of HDFC Bank, source siad. The board of HDFC Bank has Atanu Chakraborty’s name on December 28. Chakraborty’s appointment as Part-Time Chairperson of the bank will be subject to approval from the Reserve Bank of India. The bank’s board has submitted Chakraborty’s name for the position to RBI on December 28, sources added.
HDFC Bank’s current Chairperson Shyamala Gopinath is set to retire on January 1, 2021.
Road ministry proposes compulsory airbag for front seat passengers in cars
The Ministry of Road Transport and Highways has proposed making it mandatory for airbags to be provided for the passenger seated on the front seat of a vehicle, next to the driver. The proposed timelines for implementation are 01st April 2021 for new models and 01st June 2021 for existing models. A draft notification to this effect has been published on the Ministry’s website.
Sterlite Tech shares jump 10% on reports of a Rs 300-crore optic fibre cable capacity expansion plan
Shares of Sterlite Tech rose 10 percent to hit its 52-week high on Tuesday on media reports that the company is planning a Rs 300-crore optic fibre cable capacity expansion. The firm is planning to invest Rs 300-crore to increase its capacity for optical fiber cables from 18 million to 33 million fibre kilometres as telecom service providers have stepped up investments in digital network infrastructure, the report added. The company rose as much as 9.8 percent to its 52-week high of Rs 184.50 per share on BSE. Telecom majors Airtel and Jio have also been aggressively deploying their fiber-based networks following the massive surge in data consumption.
Market quote by VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“Liquidity continues to drive markets. With two more days to go in this month, FII inflows are likely to cross Rs 60000 cr in December on top of the Rs60300 cr that came in November. India’s performance is in line with the performance of other emerging market peers but valuations are much higher. Mid-small-caps which have outperformed during the last 6 months have some more steam to go up. Also the Bank Index is still 5% below its peak. So, some more catching up is possible there as the Q3 results from private sector banking majors will be good. That said, aggressive buying at peak valuations is not advisable”
Gold rate today: Yellow metal trades around Rs 50,000 per 10 grams level
Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Tuesday amid a momentum in international spot prices on a softer dollar. Silver prices eased. At 10:10 am, gold futures for February delivery rose 0.04 percent to Rs 50,032 per 10 grams as against the previous close of Rs 50,013 and opening price of Rs 50,051 on the MCX. Silver futures traded 0.22 percent lower at Rs 68,669 per kg. The prices opened at Rs 68,555 as compared to the previous close of Rs 68,817 per kg. “Gold prices saw a decent gap-up opening in the previous session on the back of US stimulus package and a weak dollar. The trading volume is expected to remain muted in gold. Fresh lockdown concerns in some parts of US may support gold prices. Going ahead, gold is likely to trade sideways-to-positive,” said Ajay Kedia, director, Kedia Commodity Comtrade. More here