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Major share benchmarks were mostly lower in Asia on Monday at the outset of the last trading week of the year as countries grappled with the spread of the omicron coronavirus variant. Benchmarks fell in Shanghai, Bangkok, Tokyo and Seoul. Taiwan and India were higher. Many global markets are closed for holidays. The Indian equities markets witnessed volatile trading on Monday with the benchmark Sensex rebounding 900 points from the day's low on good buying support in IT, power and pharma stocks. Shares of HP Adhesives got listed at ₹315 per share on the NSE on Monday, a premium of around 15% as compared to its IPO issue price of ₹274 apiece. Shares of RBL Bank fell more than 20%.
Indian equities closed higher on Monday, led by gains in pharma, financial services, banks, auto, and IT stocks.
The Sensex rose 295.93 points to close the day at 57,420.24, while the Nifty was up 82.50 points or 0.49% at 17,086.25.
On the Nifty, Tech Mahindra, Cipla, Dr Reddy's , UPL, and Kotak Mahindra were among the top gainers, while Hindalco, Britannia, ONGC, IndusInd Bank, and Maruti fell the most.
Pharma, financial services, bank, IT, and realty indices ended higher, while metal, FMCG, and media indices ended in the red.
On Sensex, only five (Reliance, Bharti Airtel, Maruti, Asian Painta, and IndusInd Bank) of the 30 stocks ended in the red.
“Indian markets opened in red tracking mixed Asian market cues as investors tracked omicron variant amid holiday-thinned trade. During the afternoon session the markets scaled back to green showing a steady trade with gaining momentum supported by gains in healthcare, industrials, and capital goods stocks. Traders were encouraged as a member of the Monetary Policy Committee (MPC) of the Reserve Bank expressed hope that in a few quarters from now, capital investment would begin to pick up even in the old economy, and said the next fiscal year is also expected to witness a decent growth."
Investment Rationale
-Accelerated Store expansion a key focus area: Trent’s fashion business reported a remarkable recovery in H1FY22 and the momentum is expected to continue in H2FY22 as well aided by a strong festive and wedding season led buying. This will lead the company to come back to profitability plane after having witnessed an adverse impact of the pandemic on its business. Management has indicated that it will continue to focus on store expansions at an accelerated pace of more than 100 stores per annum between Westside and Zudio over the next few years. Currently, Trent has ~195 Westside stores and ~160 Zudio stores that are operational with several additional stores being fitted out and ready to open once the necessary approvals are obtained. Given the focus on store expansion we believe Westside could continue to report a sustained 7-8% SSSG while revenue contribution from Zudio could increase beyond 21% in FY21 which in FY20 was less than 15%.
-Zudio’s value fashion orientation a new growth driver: Trent’s management has indicated a significant scale-up in the Zudio format which is a value fashion play targeting youth between 15-25 years. Zudio offers trendy products with sharp price points across entire product offerings at less than Rs. 999 and 2/3rd offered at less than Rs.499. This is a highly profitable format with high revenue per sq. ft of about Rs. 10,000 and ~40% gross margins. With backend processes and infrastructure aligned with Westside at store level Zudio has already become profitable.
-Margins to see a sharp improvement from Q3FY22E: Management continues to focus on reduction in rental and other related charges and expenses by engaging with property partners. Further, it is looking to variabalize certain expenditure with that to revenues including lease payments thus mitigating the downside pressure on margins. Cost-saving initiatives and increasing scale of operations, Trent could report significant improvement in margins in Q3FY22 and Q4FY22.
-We recommend BUY with a TP of ₹1,180/share.
Sharing the changes to its midcap and largecap model portfolios, domestic brokerage house Kotak Securities said that it has added GMR Infrastructure to its midcap portfolio as international traffic has been quite muted and the brokerage expects this to pick up from 2HCY22.
Paytm announced that it has integrated National Health Authority's Health ID, through which users can create their unique Health ID on its app. Users who create their IDs on Paytm will be able to pull their lab reports, book tele-consults with participating hospitals, and organize all their information with ease in a health locker, all on the Paytm App. Paytm becomes the largest consumer platform to enable the creation of Health IDs for both Android and iOS users.
Oil India Ltd, the nation's second-largest state-owned oil explorer, is setting up a plant to manufacture green hydrogen at its Jorhat oilfield in Assam, the company said in a statement.
Radico Khaitan (earlier known as Rampur Distillery Company) is among the largest manufacturers of Indian made foreign liquor (IMFL) in India. Radico has the distinction of being among very few domestic players that have, over the years, entered and generated brand equity in the prestige and above liquor segment, said brokerage and research firm ICICI Securities.
European shares fell in holiday-thinned trading on Monday as risk sentiment took a blow from the Omicron variant of COVID-19 driving up infections around the world.
The pan-European STOXX 600 fell 0.2% as of 1346 GMT, following a mixed session for Asian shares.
Banks and tech firms were among the biggest decliners in the benchmark, while oil stocks tracked lower crude prices. Defensive sectors including healthcare and real estate led gains.
Britain, Australia and Hong Kong markets were closed for holidays, while Wall Street will resume trading later in the session following a holiday on Friday.
HDFC Life on Monday announced a bancassurance tie-up with South Indian Bank that will enable customers of the bank to avail a range of life insurance products of the insurer that include solutions for protection, savings and investment, retirement and critical illness.
The public issue of Prevest Denpro Limited was listed on BSE SME Exchange on 27th September 2021. Price band of the company that manufactures and markets a range of dental materials was fixed at ₹82 to ₹84 and one lot of the public issue comprised 1600 company shares. The public issue opened on BSE SME Exchange at ₹180.55 apiece levels, giving more than 100 per cent listing premium to the allottees.
The homegrown automaker, Tata Motors, will upgrade its EV portfolio with the launch of a facelift version of its existing model Nexon EV. The electric car is expected to ship with a larger battery pack. The current model comes with a 30 kwh battery and the facelift Nexon EV might feature a 40 kwh battery pack. This will increase the range of Tata Nexon EV as well. According to market figures, Tata Nexon EV currently occupies nearly 60 per cent market share in the EV segment.
The GST regime will see a host of tax rate and procedural changes coming into effect from January 1, including liability on e-commerce operators to pay tax on services provided through them by way of passenger transport or restaurant services.
Domestic brokerage and research firm HDFC Securities has shared ten top stocks recommendations for the upcoming year:
1. Aditya Birla Capital
2. GAIL (India)
3. Hindustan Zinc
4. Ipca Labs.
5. M & M
6. Max Financial
7. Max Healthcare
8. State Bank of India
9. Tech Mahindra
10. Zee Entertainment
Several companies, including Protean eGov Technologies Ltd, travel tech firm TBO Tek Ltd, footwear maker Campus Activewear and software-as-a-service (SaaS) company Capillary Tech India Ltd, filed their draft share sale papers over the weekend with the markets regulator, joining a long queue of companies that are hoping to go public.
India's Adani Group is preparing to ship the first coal cargo from Australia's most controversial mine, after battling a seven-year campaign by climate activists and defying a global push away from fossil fuels.
The Carmichael mine in outback Queensland state is likely to be the last new thermal coal mine to be built in Australia, the world's biggest coal exporter, but will be a vital source of supply for importers such as power plants in India.
India's real estate industry staged a rebound from 2020's downturn, with housing sales seen rising by over 50 per cent. The performance, though short of pre-COVID levels, has property developers hoping for stronger gains in the New Year and the beginning of a long upcycle.
A strong foundation has been laid this year for revival in the Indian real estate sector, which is projected to reach USD 1 trillion mark by 2030 from USD 200 billion in the pre-pandemic year. Demand consolidation towards reputed developers, disciplined new homes supply, changing attitudes of consumers towards home ownership with preference for bigger-better flats and faster adoption of digital technologies by builders were some of the trends witnessed during the year that augured well for the overall growth of the Indian real estate sector. (PTI)
Post the sharp sell-off on Monday, market surprised everyone in the following sessions by giving four back to back gap up opening to surpass few key hurdles. Our markets managed to recoup all losses in this course of action to eventually conclude the week tad above 17000.
If we refer to our recent commentary, we have been continuously maintaining our cautious stance from 18000 plus levels. This certainly played out well for us as Nifty finally entered our projected target zone of 16500 – 16200. Although we were inclined towards more downside levels, we had to change our stance a bit from Tuesday onwards. This was mainly due to some extreme oversold condition of individual stocks; we started looking for some positive stock specific trades. Nifty maintaining its position beyond 17000 is an indication that the bears have lost their steam; because we not only surpassed the downside gap area created on Monday but also went on to negate the breakdown. Now we are in a neutral zone from the bearish trend and if bulls have to regain the strength, 17200 – 17300 needs to be surpassed with some authority. This development will confirm the completion of recent corrective phase and the bulls would probably be back at a driver’s seat thereafter. If this has to happen, the banking needs to step up which is slightly lagging behind in the recovery. Till then we are still not completely out of the woods.
Let’s see how things pan out going ahead as we are inching closer to the calendar year end. Traders are advised to stick to the stock centric approach because the real action lies there and we expect it to continue in coming sessions as well.
2021 has been a record year for initial public offerings (IPOs) as companies, especially new-age technology startups, sought to take advantage of a soaring stock market. The bullish trend at the stock markets buoyed the retail investors' interests in the initial share sales. Some of the bets worked impressively, some maintained the momentum while some did not.
Oil edged lower amid nervousness around the rapid spread of the omicron virus variant and strength in the dollar.
Brent reversed earlier gains to trade 0.2% lower. West Texas Intermediate, which didn’t trade Friday due to a U.S. holiday, fell. An advance in the dollar reduced the appeal of commodities like oil that are priced in the currency.
The volume of daily U.S. infections with omicron has now surpassed those in the delta wave, while China posted the highest number of cases since January. Still, Brent’s near-term market structure signaled an improved outlook.
HP Adhesives shares made a moderate debut today at Indian primary markets as shares of the company got listed on NSE at ₹315 apiece levels, ₹41 higher from its issue price of ₹274 per equity share. According to stock market experts, those who applied for the public issue keeping short term perspective can hold the stock with stop loss at ₹300 whereas those who have a long term view can hold the stock for 3-month target of ₹500 levels. They went on to add that fresh buyers can buy the counter at current market price for the same 3 months target.
Should you buy, sell or hold?
IndusInd Bank on Monday said it has partnered with the National Payments Corporation of India (NPCI) to offer real-time cross-border remittances to India using UPI (Unified Payments Interface) IDs, for its Money Transfer Operator (MTO) partners.
Despite Covid-19 pandemic posing challenges to the national economy, Indian stock market managed to soar to its record high this year. Interestingly, this rally was participatory as all segments gave stellar return to its shareholders leading to emergence of good number of multibagger stocks in 2021. This list of multibagger stocks in India includes some Tata company shares as well.
Cash management company CMS Info Systems Limited's three-day initial public offering (IPO) was subscribed 1.95 times on the last day of subscription that closed on December 23. The initial share sale received bids for 7,32,71,721 shares against 3,75,60,975 shares on offer.
CMS Info shares premium (GMP) has slipped to ₹5 in the grey market today, as per market observers. The company's shares are expected to list on stock exchanges BSE and NSE next week on December 31, 2021.
HSBC Asset Management Company and L&T Finance Holdings recently entered into an agreement that the former will buy the mutual fund unit of the latter. Going ahead, HSBC intends to merge the operations of L&T Mutual Fund with that of its existing asset management business in India.
Rakesh Jhunjhunwala portfolio: On account of aluminium and other metal prices soaring to record high this year and Government of India (GoI) imposing 5 per cent anti-dumping duty on aluminium, stock market experts are expecting strong quarterly numbers from metal stock companies. This includes National Aluminium Company Limited or NALCO. According to stock market experts, NALCO shares are looking strong from both fundamental and technical angles. They advised investors to buy this Rakesh Jhunjhunwala stock at around ₹95 to ₹100 for 3 months target of ₹137.
"The index bounced soon after opening with a gap down. The Nifty is volatile and traders should make calculated moves as the stops can be unforgiving. We need to break 16800 on a closing basis for the markets to turn negative in the short term. On the upside, we have a resistance cap at 17200-17300 and until we do not get past that, the bias will continue to be on the sell-side."
The three-day initial public offering (IPO) of Supriya Lifescience Limited was subscribed 71.51 times on the last day of share sale that concluded on December 20. The finalization of the basis of share allotment of Supriya Lifescience IPO was completed last week and the company's shares are expected to list this week on Tuesday, December 28 on the leading stock exchanges NSE and BSE.
Shares of HP Adhesives got listed at ₹315 per share on the NSE on Monday, a premium of around 15% as compared to its IPO issue price of ₹274 apiece. On BSE, HP Adhesives shares started trading at ₹319 per share.
A surge in renewable energy in India is set to massively increase spot power trading, according to the country’s largest electricity bourse. Buyers will increasingly turn away from traditional long-term contracts in favor of cheaper renewable energy, said Rohit Bajaj, head of business development at Indian Energy Exchange Ltd.
What is driving the rally?
Shares of RBL Bank plunged 10% to ₹155 apiece on the BSE in Monday's opening deals after a slew of concerning developments over the weekend. RBL Bank's Vishawvir Ahuja has stepped down as MD & CEO, and the bank has appointed Rajeev Ahuja as as the interim Managing Director and Chief Executive Officer.
Shares of HP Adhesives Limited are going to hit Indian stock market today. As per the information available at the BSE website, the equity shares of HP Adhesives Limited shall be listed and admitted to dealings on BSE and NSE in the list of 'T' Group of Securities in a special pre-open session. The scrip will be in Trade-for-Trade segment for 10 trading days. As per the stock market experts, HP Adhesives Limited shares may have a handsome debut and it may list in the range of ₹310 to ₹350 per share levels.
5 stocks to buy or sell today — 27th December
A total of three stocks have been put under the ban for trade on Monday, December 27, 2021 under the futures and options (F&O) segment by the National Stock Exchange (NSE). These securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
Indiabulls Housing Finance, Escorts, and Vodafone Idea continue to be under the exchange's stock ban list for today. Whereas, Zee Entertainment Enterprises, which was part of the ban in the previous sessions is out of the list by the stock exchange on Monday.
Cryptocurrency prices today were mixed with Bitcoin trading above $50,000 as the world's most popular and largest cryptocurrency by market capitalization rose marginally to $50,624.
Check cryptocurrency prices today
Coronavirus cases surged across the globe with China reporting over the weekend the highest number of local cases since January, darkening the year-end holiday period, Bloomberg reported.
Authorities reported 162 locally transmitted cases as an outbreak in the western city of Xi’an presents one of China’s biggest challenges yet to its Zero Covid policy. Singapore will make vaccination a condition for the approval of new applications for and renewal of existing long-term passes, work passes, as well as permanent residences starting Feb. 1.
New daily omicron infections in the U.S. have surpassed those in the delta wave, CNN reported. U.S. airlines scrapped more than 2,800 flights for the holiday weekend because of personnel shortages linked to a spike in cases.
Virus Tracker: Cases pass 279 million; deaths top 5.39 million
Oil steadied as investors weighed a surge in omicron cases against signs that the new strain isn’t as severe as previous waves.
Brent was little changed after losing 0.9% in the previous session. West Texas Intermediate, which didn’t trade Friday due to a U.S. holiday, fell. The volume of daily American infections with the new variant has now surpassed those in the delta wave, while China posted the highest number of cases since January.
Crude’s rally from the depths of the pandemic has ran into headwinds in the last couple of months as investors sized up the challenge to demand posed by omicron. At the same time, the Organization of Petroleum Exporting Countries and its allies have kept boosting supplies, and the U.S. has led a coordinated release of oil from national strategic reserves.
Here is the list of the top 10 stocks that are likely to be in focus today.
Asian stocks were mixed and U.S. equity futures were steady Monday amid a mood of caution as traders evaluated spiking coronavirus cases and a weekend pledge of greater economic support from China’s central bank.
Shares declined in Japan and fluctuated in China, while S&P 500 and Nasdaq 100 contracts edged up following an all-time high for U.S. stocks on Thursday before the Christmas break.
The U.S. 10-year Treasury yield slipped, West Texas Intermediate crude fell and gold retreated. A dollar gauge ticked higher.
Reports indicated new daily U.S. infections with the omicron virus variant have surpassed those in the delta wave, while China posted the highest number of local cases since January. The pathogen is causing disruption, including the cancellation of almost 2,400 flights over the holiday weekend in the U.S.
In China, the central bank on Saturday pledged greater support for the real economy and said it will make monetary policy more forward-looking and targeted, amid expectations of easing as a property slowdown saps growth.
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