Sensex soars past 48k, Nifty ends at 14,133; metal, IT stocks shine

Indian benchmark share indices settled at all time highs on Monday as investor sentiment was upbeat after the country gave emergency use approvals to two coronavirus vaccines over the weekend.

The S&P BSE Sensex advanced for a ninth day, closing 0.64% or 307.82 points higher at 48,176.80. The NSE Nifty 50 Index climbed 114.40 points or 0.82% to close at 14,132.90.

ONGC, closing over 4% higher was the top Sensex gainer, followed by TCS, HCL Tech, TechM and Infosys. Kotak Bank, Bajaj Finance, Asian Paints and Titan were among the laggards. Of 30 Sensex shares, 21 closed in the green.

Asian stock markets rose Monday on 2021's first trading day, boosted by optimism about the rollout of coronavirus vaccines after Wall Street ended the year on a new high.

Market benchmarks in Shanghai, Hong Kong, Seoul and Sydney advanced. Tokyo declined.

The Shanghai Composite Index gained 0.3% to 3,481.98 and the Hang Seng in Hong Kong gained 0.3% to 27,308.63.

The Nikkei 225 in Tokyo was off 0.4% at 27,344.87 after Prime Minister Yoshihide Suga announced the government is considering declaring a state of emergency for Tokyo and three surrounding prefectures due to surging virus caseloads.

The Kospi in Seoul rose 2% to 2,930.38 and Sydney's S&P-ASX 200 added 0.2% to 6,661.10. Singapore and Jakarta also advanced.

Bajaj Auto on Monday reported an 11% increase in total sales at 3,72,532 units in December 2020.

The firm had sold a total of 3,36,055 units in December 2019, Bajaj Auto said in a statement.

Domestic sales were down 9% at 1,39,606 units as compared to 1,53,163 units in the year-ago month, it added.

Total motorcycle sales were at 3,38,584 units last month as against 284,802 units in December 2019, up 19%, it added.

Exports jumped 27% to 2,32,926 units as compared to 1,82,892 units in the same month a year ago, Bajaj Auto said.

Shares of BEML jumped nearly 8% in early trade on Monday after the government invited preliminary bids for strategic sale of 26% stake along with transfer of management control in the defence PSU.

The stock gained 7.77% to ₹1,050 at the BSE.

On the NSE, it zoomed 7.74% to ₹1,051.

Public sector Cochin Shipyard on Monday declared an interim dividend of ₹9 per share.

In a regulatory filing, Cochin Shipyard said the board of directors of the company has declared an interim dividend of ₹9 per equity share of ₹10 each for the financial year 2020-21 and has fixed Thursday, January 14, 2021, as the record date for the aforesaid interim dividend.

The dividend shall be paid to the eligible shareholders on or before February 2, 2021, the company added.

Tata Motors has signed a memorandum of understanding with Karnataka Bank to introduce financing offers for customers.

Customers can avail a variety of schemes on their future vehicle purchase available across 857 branches of Karnataka Bank which include 199 semi-urban and 67 rural branches.

Loans of up to 85% on the on-road pricing of a Tata Motors vehicle are available with an interest rate linked to external benchmark lending rate which will be updated on the bank's website periodically. The tenure of this loan is set at a maximum time-frame of up to seven years.

The merger of Jindal Stainless (Hisar) Limited (JSHL) into Jindal Stainless Limited (JSL) is being viewed by the Street in positive light and is leading to upgrades for the shares.

The merger, which will create a mega stainless steel entity and largest stainless steel company in India, will also catapult Jindal Stainless into the club of world's top 10 stainless steel firms.

Business activity in India’s manufacturing sector continued to recover in December aided by domestic demand. IHS Markit’s Manufacturing Purchasing Managers Index (PMI) rose from 56.3 in November to 56.4 in December. A reading of above 50 indicates an improvement and below this threshold indicates contraction.

But the recovery in the headline data comes in the backdrop of sharp rise in input cost inflation. The PMI sub-index tracking this metric has hit a 26-month high in December. Those surveyed have noted increased prices for chemicals, metals, plastics and textiles. "A worrying development remains higher input prices, which may add to output prices in coming months, especially as demand conditions normalise," Rahul Bajoria, chief India economist at Barclays said in a report on 4 January. (Full report)

Indian stocks swung between gains and losses, as some investors saw the roll out of a vaccine aiding business while others took advantage of record-high index levels to book profits.

The S&P BSE Sensex advanced for a ninth day, adding 0.3% to 48,008.44 as of 12:56pm after falling as much as 0.6%. The NSE Nifty 50 Index also climbed 0.4% at 14,077.20. Both indexes were on course to close at new peaks.

The government's approval to sell 26% stake in BEML Ltd through strategic disinvestment has fired up the stock. The company's share price shot up over 4% in early trade on Monday. The stock is trading close to its pre-covid highs having recovered 63% in the past two months.

Much of this has got to do with the buzz around the disinvestment, which also comes with management control. But its business is also expected to gain traction with normalcy returning in the construction and mining space. (Full report)

The Indian rupee hit a fresh four-month high on Monday to strengthen past the 73-per-dollar mark after the government approved emergency use of covid vaccines by Serum Institute and Bharat Biotech.

The domestic currency also gained due to continued inflows by foreign investors in local equities and debt markets, and a fall in dollar index. Worries over global growth recovery on rising infections weakened the dollar today.

Shares of Tata Motors on Monday gained over 3% after the firm reported a 21% increase in total vehicle sales in the domestic market in December.

The stock jumped 3.51% to ₹193 on the BSE.

On the NSE, it gained 3.48% to ₹193.

Tata Motors on Friday reported a 21% increase in total vehicle sales in the domestic market to 53,430 units in December.

L&T Hydrocarbon Engineering (LTHE) on Monday said it has bagged an over to ₹7,000 crore order from HPCL Rajasthan Refinery Ltd (HRRL), a joint venture between Hindustan Petroleum Corporation (HPCL) and Government of Rajasthan, for setting up a dual feed cracker unit.

The engineering and construction company, however, did not provide the exact value of the contract, but specified that as per its classification, the mega project is worth over ₹7,000 crore.

"L&T Hydrocarbon Engineering Limited (LTHE), a wholly-owned subsidiary of Larsen and Toubro, has won an order from HPCL Rajasthan Refinery Limited (HRRL), a joint venture between Hindustan Petroleum Corporation (HPCL) and Government of Rajasthan," L&T said in a regulatory filing.

Bajaj Auto on Monday reported an 11% increase in total sales at 3,72,532 units in December 2020.

The firm had sold a total of 3,36,055 units in December 2019, Bajaj Auto said in a statement.

Domestic sales were down 9% at 1,39,606 units as compared to 1,53,163 units in the year-ago month, it added.

Total motorcycle sales were at 3,38,584 units last month as against 284,802 units in December 2019, up 19%, it added.

Exports jumped 27% to 2,32,926 units as compared to 1,82,892 units in the same month a year ago, Bajaj Auto said.

Private steel maker Jindal Steel and Power Ltd (JSPL) on Monday posted a record 30% jump in its standalone production and 25% growth in sales during December 2020.

The company's total production from its plants in India was at 7.27 lakh tonne (LT) in December, up from 5.59 LT during the same month in 2019, JSPL said in a statement.

During the month under review, its standalone sales were at 7.11 LT, as against 5.67 LT in December 2019.

On a month-on-month basis, the production at 7.27 LT was over 18% higher from 6.14 LT in November 2020.

In December 20, Escorts reported total tractor sales number ~88% y-o-y growth to 7,733. On the domestic front, Escort reported ~90% y-o-y growth in tractor sales number which is better than expected. For period 9MFY21, the company has reported ~12% growth y-o-y in domestic tractor sales number.

Rupee surges 20 paise to 72.91 against US dollar in early trade.

State-owned NMDC posted over 23% rise in iron ore output at 3.86 million tonne (MT) during December 2020. In the year-ago period, the miner had produced 3.13 MT iron ore from its mines, NMDC said in a BSE filing. The company's total sales during the month under review were at 3.62 MT, up 19% from 3.04 MT in December 2019.

The company reported a 17.5% increase in total sales to 2,72,084 units in December. TVS Motor Company had sold 2,31,571 units in December 2019.

India’s manufacturing sector continued to strengthen in December with manufacturers stepping up production and input buying amid efforts to rebuild their inventories following pandemic-driven business closures earlier in the year, according to a private survey.

Data released by the analytics firm IHS Markit on Monday showed Purchasing Managers’ Index (PMI) for manufacturing sector picked up marginally in December to 56.4 from 56.3 a month ago. A figure above 50 indicates expansion, while sub-50 signals contraction.

However, the job scenario continues to be dismal with employment decreasing in December for the ninth consecutive month. “Companies stated that government guidelines to have employees working only on shifts and difficulties in finding suitable staff were the key factors causing the latest fall in payroll numbers. However, the pace of contraction was moderate and the weakest in the current downturn period,” IHS said.

Reliance Industries Ltd (RIL), through its telecom subsidiary Reliance Jio Infocomm Ltd, will file a petition in the High Court of Punjab and Haryana against the attack on the telco’s mobile towers and infrastructure in the two northern states amid farmers’ protest.

“RIL, through its subsidiary Reliance Jio, in a petition mentioned to be filed in the honourable Punjab and Haryana high court today, has sought the urgent intervention of the government authorities to bring a complete stop to the illegal acts of vandalism by miscreants,” RIL said in a statement on Monday.

The Company has transferred its stake in two companies to TSDPL, a wholly- owned subsidiary of the firm, as part of reorganizing its India footprint. "...the company today transferred the 51 per cent stake it holds in Jamshedpur Continuous Annealing and Processing Company Private Ltd (JCAPCPL) and 50 per cent stake it holds in Tata BlueScope Steel Private Ltd (TBSPL) to Tata Steel Downstream Products Ltd (TSDPL)," Tata Steel said in a regulatory filing.

The country's largest two-wheeler maker Hero MotoCorp has reported 5.02 per cent increase in total sales at 4,47,335 units in December. The company had sold 4,24,845 units in the same month of the previous year, Hero MotoCorp said in a statement.

The Drugs Controller General of India (DCGI) has approved conducting phase III trials of the country's first DNA vaccine candidate against covid-19 being developed by Zydus Cadila, the Department of Biotechnology said on Sunday.

The vaccine candidate has been supported by the National Biopharma Mission (NBM) under the aegis of Biotechnology Industry Research Assistance Council (BIRAC), a PSU under the DBT.

"The nation's first indigenously developed DNA vaccine candidate against COVID-19, ZyCoV-D, by M/s Zydus Cadila, has been approved by Drugs Controller General of India (DCGI), for conduct of the Phase III clinical trials," the DBT said.

"14100 can pose a resistance for the Nifty. Traders should consider booking profits at the current juncture and trail thereafter. We have a good support at 13900 and if we close below this level, there could be a correction. Hence it is advised to be cautiously long with strict stops," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Regulator Sebi on Friday imposed penalties on Reliance Industries Ltd, its Chairman and Managing Director Mukesh Ambani as well as two other entities for alleged manipulative trading in the shares of erstwhile Reliance Petroleum Ltd (RPL) back in November 2007.

Fines of ₹25 crore and ₹15 crore have been imposed on Reliance Industries Ltd (RIL) and Ambani, respectively. Besides, Navi Mumbai SEZ Pvt Ltd has been asked to pay a penalty of ₹20 crore and Mumbai SEZ Ltd has been directed to pay ₹10 crore.

The case pertains to sale and purchase of RPL shares in the cash and the futures segments in November 2007. This followed RIL's decision in March 2007 to sell 4.1% stake in RPL, a listed subsidiary that was later merged with RIL in 2009.

Indian benchmark equity indices opened at record highs on Monday led by gains in HDFC Bank, Infosys and ICICI Bank.

Sensex opened at 48,109.17, up 240.19 points or 0.50%, while Nifty was at 14,104.35, up 85.85 points or 0.61%. Ultratech Cement up over 1%, was the top Sensex gainer followed by Infosys, IndusInd Bank and ONGC. Bajaj Auto and Nestle India were the only laggards in the 30-share barometer.

Indian stocks traded higher in the pre-opening session on Monday. At 9:09am, Sensex was at 48,109.17, up 240.19 points or 0.5%, while Nifty climbed 85.85 points or 0.6% at 14,104.35.

Seven of the top-10 most valued domestic firms together added ₹75,845.46 crore in market valuation in the past week, with HDFC twins emerging as the biggest gainers.

Apart from HDFC duo, Tata Consultancy Services (TCS), Infosys, Kotak Mahindra Bank, ICICI Bank and Bajaj Finance were other gainers,

On the other hand, Reliance Industries Limited (RIL), Hindustan Unilever Limited and Bharti Airtel saw erosion in their market valuation.

The valuation of HDFC jumped by ₹20,857.99 crore to ₹4,62,586.41 crore and that of HDFC Bank zoomed by ₹15,393.9 crore to reach ₹7,84,758.50 crore.

IT major Infosys' m-cap rose by ₹10,251.38 crore to ₹5,36,878.45 crore. (Full report)

Cadila, Hero MotoCorp, Tata Steel, Eicher, BEML and Power Finance Corp are among the top stocks that may be in focus today. (Full report)

The BSE Sensex soared to record highs while the NSE Nifty closed above the 14,000-mark for the first time on Friday as markets continued their record run in the new year amid robust buying in IT, auto and FMCG stocks.

Extending its record-setting streak for the fifth day, the 30-share BSE Sensex rose by 117.65 points or 0.25% to close at a fresh lifetime high of 47,868.98.

This was the eighth consecutive day of gains for the barometer and it has climbed by around 5% since December 22.

The broader Nifty closed at an all-time high of 14,018.50, showing gains of 36.75 points or 0.26% over its previous close.

Asian share markets resumed their ascent on Monday as investors pinned their hope on vaccines to eventually deliver a global economic upturn, even as a possible tightening in virus rules for Tokyo pulled Japanese stocks off 30-year highs.

After a slow start, MSCI's broadest index of Asia-Pacific shares outside Japan swung 0.8% higher to hit another all-time peak.

Nikkei dropped 0.36%.

Australia's ASX200 climbed 1.3%.

China's Shanghai Composite index advanced 0.5%, while Hong Kong's Hang Seng was up 0.57%.

Singapore's SGX Nifty added 0.6%.