Sensex, Nifty end flat in volatile trade; HDFC, Bajaj Finance top losers15 min read . Updated: 13 Jan 2021, 03:47 PM IST
- Sensex opened 200 points higher on Wednesday but failed to hold on to the gains in a choppy market. The 30-share index closed 25 points lower at 49,492, while Nifty closed a tad higher at 14,565
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Indices end flat amid choppy trade
Snapping a three-day winning streak, Sensex and Nifty closed flat amid highly volatile trade. The 30-share index closed 25 points lower at 49,492, while Nifty closed 0.01% higher at 14,565.
Market breadth was negative with midcaps and smallcaps clocking losses. Banks and auto stocks were the best performers today.
On the Sensex,
Volume toppers on Sensex: TCS, Bharti Airtel lead
European equities rise
European shares rose after a shaky start and the dollar edged up on Wednesday, while the 10-year U.S. Treasury yield fell from 10-month highs, helped by policymakers pushing back against talk of the Fed tapering its support.
After Asian equities saw modest gains, European shares opened lower then rose slightly, with the pan-European STOXX 600 up 0.2%.
Nikkei 225 ended 1% up.
Motilal Oswal to raise ₹800 crore real estate fund
Motilal Oswal Real Estate (MORE), the real estate private equity arm of Motilal Oswal Financial Services Ltd is planning to raise up to ₹800 crore with its fifth real estate fund ‘India Realty Excellence Fund V (IREF V)’, the firm said on Wednesday.
While the earlier three funds had focused on early-stage real estate deals, IREF V will offer construction finance in projects that have all approvals. The new fund plans to deploy the capital in mid-income or affordable residential projects across seven cities -Mumbai, Delhi-NCR, Pune, Bengaluru, Chennai, Hyderabad and Ahmedabad. It will also selectively invest in commercial office projects.
Vaccine progress adds to growth opportunities for Dr Reddy’s
With coronavirus vaccines in the spotlight, Dr Reddy’s Laboratories has remained in focus. The progress of the Sputnik-V vaccine is encouraging, with studies in phase-II meeting the endpoint on safety.
Dr. Reddy’s and Russian Direct Investment Fund (RDIF) have partnered to conduct clinical trials of the Sputnik V vaccine and distribute the shots in India.
CESC's consol profit rises in December quarter, shares up 1.7%
CESC Ltd's consolidated net profit rose to ₹3.24 billion in the December quarter versus ₹2.67 billion a year ago. Consolidated revenue from operations increased to ₹25.39 billion against ₹23.44 billion a year ago.
The company has declared an interim dividend of 45 rupees per share.
Divi’s Lab is one of best performing large-cap stocks
In just about two weeks, at least four brokerages have raised their price targets on Divi’s Laboratories Ltd., one of the top producers of active pharmaceutical ingredients, with Jefferies India Pvt.’s estimate -- which targets a 21% gain over the next 12 months from current levels -- being the most bullish in data compiled by Bloomberg.
Broad market weak, VIX up over 4%
Bajaj Finance biggest laggard on Sensex, down 4%
Sebi lowers fees for investment advisors
Sebi has reduced fees payable by individual and corporate investment advisors for grant of a license and renewal of a certificate to practice. The regulator also inserted a provision for taking membership of a self regulatory association into account, while granting a certificate.
The move comes in the wake of a series of Sebi rules tightening the regime for Sebi Registered Investment Advisors (RIAs) in 2020, causing concerns about the viability of the profession. As per Sebi data, there are less than 1,500 Sebi RIAs in India compared to over 1,00,000 mutual fund distributors.
Amazon ties up with Bharti Airtel for roll-out of Prime Video mobile edition
Launched in collaboration with telecom company Bharti Airtel, the Amazon plan will only be available to pre-paid Airtel users in multiple forms-- a 30-day free trial which may be followed by a 28-day plan priced at ₹89 for Prime Video content along with 6GB data.
Sensex down around 200 points in volatile trade
Unichem Labs gets US FDA nod to market generic Celecoxib capsules
Drug firm Unichem Laboratories on Wednesday said it has received approval from the US health regulator to market its generic Celecoxib capsules used for treatment of osteoarthritis, rheumatoid arthritis and acute pain.
The company has received abbreviated new drug application (ANDA) approval for its Celecoxib capsules in the strengths of 50 mg, 100 mg, 200 mg, and 400 mg from the United States Food and Drug Administration (USFDA), Unichem said in a filing to BSE.
Future-Reliance case: Delhi HC issues notice on Amazon’s plea
The Delhi High Court on Wednesday issued notice to Future Retail Limited and other respondents on e-commerce major Amazon’s appeal against a single judge bench order of 21 December that had prima facie upheld the proposed merger of Future Retail Limited with Reliance Retail Ventures Limited while allowing Amazon Inc to continue opposing the merger at other appropriate legal forums.
The single judge had prima facie held that interim award by Singapore International Arbitration Centre in favour of Amazon was legal, but also prima facie held that the Future-Reliance transaction was legal while leaving the final decision to the regulatory bodies.
Airfare rule tweaks offer cushion to Indian airlines but demand concerns persist
The Ministry of Civil Aviation (MoCA) has extended the restrictions on domestic airfares--floor and cap--by slightly more than a month to 31 March. Also, the proportion of tickets to be sold below the median fare of the band has been reduced to 20% from 40%.
This provides some relief for airlines, grappling with demand slowdown in a post pandemic world. Plus, it is also helpful considering the March quarter is a relatively lean season. But the move is hardly a game changer for the fortunes of the sector, where demand recovery to pre-covid levels is expected to be rather slow. (Full report)
HDFC biggest laggard on Sensex, down almost 3%
Bitcoin extends weekly drop
Bitcoin resumed declines Wednesday as the digital coin heads for its worst week since March last year, a drop that’s raised questions about the outlook for the cryptocurrency boom.
Bitcoin fell as much as 6.8% to about $32,359 before paring some losses. The largest cryptocurrency whipsawed investors over the past few days, hitting a record near $42,000 on Jan. 8 and then tumbling to a low around $30,300.
IT department brings out faceless penalty scheme
The Income Tax Department has brought out a "faceless penalty scheme" to handle recommendations for penalty issued under its faceless assessment programme.
The scheme notified on Tuesday seeks to ensure that any order arising from faceless assessment of taxable income is fool proof and has undergone multiple layers of review before a penalty is confirmed or dropped.
M&M hits 52-week high, up 6.3%
Aditya Kondawar of JST Investments on IPO markets
The IPO markets are active again after a very short break since Antony Waste Handling listed on January 01, 2021. The year 2021 is expected as a year that will see a number of IPOs getting listed. The list is also expected to see a few of India’s famous startups.
Indian Rail Finance Corporation (IRFC) IPO is all set to open on January 18, 2021, and close on January 20, 2021. The price band is ₹25 - 26. The Grey market premium is at ₹1.25, translating into a 4.8% over the issue price.
IRFC is the borrowing arm of Indian Railways and is responsible to raise funds for the Ministry of Railways (MoR) that is required to procure rolling stock assets (wagons, trucks, electric multiple units, locomotives, coaches), its improvement, expansion, and assets management.
Indigo Paints IPO is all set to open on January 20, 2021, and close on January 22, 2021. The price band is ₹1480 – 1500. The Grey market premium is at ₹800, translating into a 53.3% over the issue price.
In terms of revenue, it is the 5th largest company in the decorative paint industry. The company is engaged in manufacturing different types of decorative paints like enamels, emulsions, wood coatings, primers, distempers, putties, and cement paints.
BSE Midcap down 0.3%
L&T receives multiple orders in domestic, overseas market
Larsen & Toubro on Wednesday said it has received multiple orders across business segments in the domestic and international market.
The company did not provide the value of the contracts but said the orders fall under the "significant" category, which ranges between ₹1,000 crore and ₹2,500 crore according to the classification of contracts.
India’s petrol prices hit record high, retailing at ₹84.45 per litre in NCR
Petrol prices in India on Wednesday hit an all-time high, with oil marketing companies (OMCs) selling it at Rs84.45 a litre in the national capital.
The retail price of petrol, which was last increased on 7 January, was raised by 25 paise per litre on Wednesday. After holding steady for 29 days, petrol price was raised by 26 paise per litre on 6 January and again by 23 paise a litre on 7 January. The price of diesel was also raised on Wednesday by 25 paise to retail at Rs74.63 per litre in Delhi.
Nifty slips below 14,550 mark
Sensex in the red at noon dragged by HDFC twins; M&M, Airtel best gainers
Meaningful recovery in oil realizations key for ONGC’s earnings growth
There may be a ray of hope for ONGC as a rise in oil prices may support its net oil realization and, in turn, the oil producing company's earnings. Volatility in crude prices during 2020, owing to pandemic-led disruptions had a significant impact on ONGC's earnings prospects. Crude prices now are close to an 11-month high, which is improving the outlook for ONGC. However, sustaining these price levels remains crucial. (Read here)
HDFC twins, TCS drag Sensex in the red
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking on gold and silver prices
"Today gold price corrected by 0.54% and trading at 49075 levels on the back of strength of dollar and increase in US bond yields. Traders are expecting stability in US economy as Biden won the US election and over optimism on US economy. Silver trading at 0.11% higher and trading at 65585 levels. It is expecting that gold may fade out its safe haven demand as people looking towards US Dollar for investment.
Investors pulled money from the gold as safe haven to plow into Treasuries as U.S. 10-year note yields surged to March highs. People may also sell their Gold ETF holding as they are expecting stability in US Politics with President-elect Biden and as the U.S. begins to speed up their vaccine rollout.
As of now traders can go for sell in Gold at 49200 levels with the stop loss of 49550 for the target of 48700 levels. Also sell silver at 65800 levels with the stop loss of 66300 levels for the target of 64500 levels."
Most sectoral indices positive; Nifty Auto up 1%; IT and Pharma weak
After December relief, a complicated inflation outlook awaits RBI
With December witness to the expected sharp drop in headline retail inflation, markets have gotten the much needed relief but it may be too soon to rejoice as new pressure points are building up.
Headline consumer price index inflation fell to 4.59% in December, having uncomfortable staying 6% for eight straight months. The main contributor to this decline was a big fall in vegetable prices and a favourable base. Vegetable prices slipped into disinflation in December, something that economists and the Reserve Bank of India (RBI) had anticipated. This led to food inflation coming down by 5.02 percentage points. This disinflation is expected to continue in January as well before the base effect wears off, according to economists. (Read here)
Bharat Rasayan up 2.4%
The company's board has approved its proposal to buy back up to 93,472 shares of ₹10 each, comprising 2.20% of the total paid up equity capital of the company at ₹11,500 per share for an aggregate amount not exceeding ₹107.49 crore.
Sameet Chavan, chief analyst-Technical and Derivatives, Angel Broking:
“We had a sluggish start as indicated by the SGX Nifty early in the morning. However, it was merely a formality as we witnessed RIL and few banking heavyweights lifting the benchmark index higher in the subsequent hours. The upward momentum continued in the second half to add another half a percent to close tad above the 14550 mark.
Barring couple of days breather in the previous week, the markets continued its merry run in the new calendar year as well. Almost every day in the first half, market gives small correction and that decline is getting bought into comfortably by the bulls. Honestly, we have not seen such kind of optimism over the past decade or so and hence, it’s becoming difficult to ride this move now. In fact, the contrarian bets from retail participants are not letting the markets fall, which is the practical aspect of the relentless move. Without thinking much, it’s better to follow levels and take one step at a time. On the higher side, 14600 is the next level to watch; whereas on the lower side, 14500 – 14430 – 14380 to be seen as immediate supports.
Yesterday, after a long underperformance, the RIL took the large and led from the front along with few banking heavyweights. Every day some new theme comes up to keep up the momentum; but since last couple of days, it is observed that individual stocks are witnessing some profit booking as well. Hence, one needs to be very selective and look for trading opportunities on the both sides of trend. Also, we reiterate that as a momentum trader, one should keep booking profits and avoid leveraged positions overnight."
Market breadth positive, Nifty sectoral indices in the green
Oil prices gain more than 1%
Oil prices gained more than 1% on Wednesday, with U.S. crude rising for a seventh day, after industry data showed a bigger than expected drop in inventories and investors shrugged off worsening developments in the pandemic.
U.S. West Texas Intermediate (WTI) was up 67 cents, or 1.3%, at $53.88 a barrel after gaining nearly 2% on Tuesday. Brent crude was up 79 cents, or 1.4%, at $57.37, having risen 1.7% in the previous session.
Market outlook: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
We have achieved the 14600 level. The key resistance patch is now between 14650-14750. It needs to be seen how markets react here. Is it going to resist or fly out of those levels like all other resistance levels have been treated over the past couple of months? If we can get past the 14750 level on a closing basis, we should be headed towards 15000. The current support range for the Nifty is 14200-14250.
Rupee up 12 paise
The Indian rupee rose 12 paise to 73.13 per US dollar in early trade on Wednesday.
BASF India up 1%
The Mumbai bench of National Company Law Tribunal has sanctioned the company’s scheme of merger by absorption of BASF Performance Polyamides India Pvt Ltd with the company. The scheme will come into effect from 1 February.
Infosys and Wipro Q3 earnings: Five things to watch out for today
After a stellar Q3 performance by Tata Consultancy Services Ltd (TCS), all eyes are on peers Infosys Ltd and Wipro Ltd. The Bengaluru-based companies will announce their third quarter earnings after market hours on Wednesday.
Given the gradual uptick in business and demand environment, investors will monitor if Infosys will raise its existing FY21 guidance. Wipro which gives a quarterly guidance is also expected to show greater confidence and management commentary on the outlook and recovery trajectory will be closely watched.
Mint highlights five things to watch for in Infosys’ and Wipro’s third quarter results. (Read here)
Tata Motors up 3%
The auto major reported a 1% rise in global wholesales, including Jaguar Land Rover, to 2,78,915 units in the third quarter of the current fiscal. The company had sold 2,76,127 units in the October-December period.
Tata Elxsi hits 52-week high on robust earnings
The company's net profit has increased 39.5% to ₹105.2 crore for the December quarter. Its revenue from operations rose 12.7% to ₹477.1 crore. The company said it saw all-round growth across industries and geographies.
Nifty Bank hits record high; Bank of Baroda, SBI lead pack
Bharti Airtel up 4%
The telecom company has received approvals for its relevant downstream investments and is initiating the process to revise its foreign investment limit, as notified to its depositories, to 100% with immediate effect.
Bharti Airtel, SBI top gainers on Sensex; Kotak Bank and Bajaj Auto biggest laggards
Sensex, Nifty open strong
Sensex opened nearly 200 points higher on Wednesday. At 0922 am, the 30-share index was at 49,736, while Nifty 50 was 0.5% higher at 14,638. Bharti Airtel, up 5%, was the best gainer on the indices, while Bajaj Auto was the biggest laggard.
Factory output shrinks, retail inflation slows
India’s factory output shrank in November after registering two straight months of growth, signalling that the nascent recovery in Asia’s third-largest economy is yet to take deep roots.
This is likely to add pressure on finance minister Nirmala Sitharaman to announce more measures to support growth in the economy in her third Budget that is scheduled to be presented on 1 February.
However, in a relief to the government and the central bank, retail inflation sharply slowed to a 14-month low in December, returning to the comfort zone of the Reserve Bank of India as food inflation subsided.
Indices in the green at pre-opening session
Sensex was at 49,850.17, up +333 points at pre-open.
Stocks to Watch: Wipro, Infosys, Bharti Airtel, Tata Motors
Among the top ten stocks that may be in news on Wednesday are Wipro and Infosys that will announce December quarter earnings. Bharti Airtel, Tata Motors, Hero MotoCorp, SBI, and Tech Mahindra will also be in focus today. (Full report)
Indian markets likely to be steady
Indian equity markets are likely to be steady on Wednesday. Trends on SGX Nifty suggest a positive opening for domestic benchmark indices. On Tuesday, the BSE Sensex ended at 49,517.11, up 247.79 points or 0.50%. The Nifty closed at 14,563.45, up 78.70 points or 0.54%.
Indian markets will react to the macroeconomic data --IIP and CPI-- in early trade on Wednesday.
Asian markets mostly higher
Asian stocks opened mostly higher on Wednesday, tracking modest Wall Street gains amid hopes of a quick recovery from the coronavirus pandemic. Investors were betting that the incoming Biden administration would ramp up US distribution of coronavirus vaccines.
Japan's Nikkei 225 rose 0.5%, while Kospi gained 0.2% and Hang Seng was flat to higher. Australia's S&P/ASX 200, however, fell 0.12%.
US stocks edge higher
US stocks edged higher on Tuesday in a choppy session as investors mulled the prospects of the economic recovery and vaccine rollout.
The S&P 500 rose a tad higher, Dow Jones Industrial Average rose 0.2%, and the Nasdaq Composite added 36.00 points, or 0.28%, to 13,072.43.