PremiumIndian shares were largely unchanged (marginally higher) on Monday as a 6% drop in IT firm HCL Technologies after disappointing quarterly results offset gains in auto stocks. The stock market's momentum will be guided by the ongoing quarterly earnings season, with Reliance Industries, HUL and Bajaj Finance among those scheduled to announce their results this week.
Key share indices ended marginally higher on Monday amid volatility and tracking global markets. Sensex ended 85.88 points lower at 61,308.91, while Nifty settled 52.35 points up at 18,308. Ultratech Cement, Maruti Suzuki were the top gainers, while HCL Tech and HDFC Bank were the laggards. Auto and realty stocks outperformed while banks, IT and financial services, and pharma were under pressure. On the 30-share Sensex, 19 stocks advanced and 11 declined. On the Nifty, Hero MotoCorp, Grasim, ONGC, and Tata Motors were the top gainers, while HCL Tech, Cipla, Axis Bank were among the top losers.
Dalmia Cement (Bharat) Limited (DCBL), a subsidiary of Dalmia Bharat Limited, on Monday announced the commencement of commercial production at its Murli plant in Chandrapur district, Maharashtra, thereby adding 2.9 million tonne to the company’s installed cement capacity of 35.9 MT.
UltraTech Cement, an Aditya Birla Group company, today reported a consolidated net profit of ₹1,708 crore for the December quarter (Q3FY22), which is an increase 8% from a year ago. The same was ₹1,584 crore in the last year period.
Dolly Khanna portfolio stock and one of the multibagger stocks in 2021 has hit 5 per cent upper circuit today and reach close to its lifetime high of ₹264 per share levels. According to stock market experts, Dolly Khanna share is skyrocketing because of the price appreciation of soya oil in international markets. They said that recent Indian government's decision to cut export duty on soya oil export and rise in soya oil demand in China are other fundamental reasons that have fueled Ajanta Soya share price.
The payment landscape in India is rapidly evolving with digital payment ecosystem leading the change, over traditional payment modes. Interestingly, while digital payment ecosystem adoption, led by UPI, has been growing fast, cash-in circulation (cash-to-GDP) also rose to 14% in FY21 from 8% in FY17. Further, within various payment / withdrawal instruments, micro-ATM (mATM) deployment continues to outpace the growth in cards, PPIs and ATMs in FY22-TD. Even on a high base of 49% YoY growth in FY21, mATM deployment has risen by a strong 32% in FY22-TD, followed by prepaid cards at 27%. On the contrary, bank-led ATM network and card issuance (both debit & credit) grew in single digit at 1% / 4% respectively between Mar-Oct’21.
In mATM space, Fino continues to dominate with 49% market share as of Nov’21, in total deployed devices. SBM Bank India (12% market share), City Union Bank (3%), NSDL Payment Bank (3%) and Yes Bank (4%) are aggressively tapping the mATM space during past 6-9 months. Other leaders including SBI, BoB, IDFC, among others, appear to be rationalising their network. On the withdrawal-volume side (AePS), total throughput in Apr-Oct’21 (7 months) was already ~74% of total FY21 throughput.
With major headwinds for Arvind Fashions now past, brokerage house Anand Rathi expects a revival in growth and better margins in its key power brands, which account for 80%+ of its revenue and almost all its EBITDA. Hence, brighter prospects make the brokerage upbeat on the company. "Ahead, it will concentrate on its six focus brands, optimise working capital via better inventory turns, and expand its network through franchisees. We expect more cash generation and better return ratios, and debt to shrink," the broker note stated.
Consumer confidence among urban Indians fell 3.4 percentage points month-on-month in January, with consumers reporting a significant decline in their personal financial conditions, according to the monthly Primary Consumer Sentiment Index or PCSI released by Refinitiv-Ipsos.
Technical View
The Nifty Realty index is regaining upward momentum after undergoing healthy retracement over past three months. Within the space we remain constructive on Godrej Properties as stock has logged a resolute breakout from falling channel, indicating conclusion of secondary corrective phase that in turn augurs well for resumption of primary trend. Thereby offering fresh entry opportunity with favourable risk reward setup
Key point to highlight is the stock has witnessed a slower pace of retracement as over past ten weeks it retraced 80% of preceding 4 weeks rally (| 1602-2598). The slower retracement indicates robust price structure that bodes well for extension of upward momentum.
Consumer goods company Unilever Plc’s – that made three separate offers for GlaxoSmithKline’s (GSK) consumer business – comes nearly two years after its Indian arm Hindustan Unilever Ltd (HUL) successfully merged with GlaxoSmithKline Consumer Healthcare Limited (GSKCH) in India, giving it access to health food drinks brands, such as Horlicks, Boost and Maltova in the country. The 2020 deal has given HUL heft in the nutrition category in India. Unilever also acquired rights to health food drinks brands in around 20 other predominantly Asian markets.
Infrastructure engineering, procurement and construction (EPC) major KEC International on Friday said it has bagged new orders worth ₹1,065 crore across various businesses.
Its Transmission & Distribution (T&D) business has secured orders for projects in India, the Middle East, Africa, and Americas.
While the railways business has secured an order for construction of railway siding in the conventional segment in India, the civil business bagged an order for infra works in the water pipeline segment in the country.
The oil & gas pipelines business has secured an order for laying of oil and gas pipeline, through the company's wholly-owned subsidiary, Spur Infrastructure Pvt Ltd, it said in a statement.
The cable business has bagged orders for various types of cables in India and overseas.
Indian Oil Corp. Ltd. (IOCL) plans to expand its city gas distribution (CGD) business, looking to invest ₹7,000 crore over and above the ₹20,000 crore already planned for the vertical. In the recent round auctions by the Petroleum and Natural Gas Board, the company bagged 9 of the 15 high potential GAs (Geographical Areas).
Analysts say that these investments can create value and will be earnings accretive, but the gains will accrue only over time. The pipeline infrastructure and expansions will take some time to complete while the bidding has been aggressive. There may be more upfront investments in terms of capex. All these are key factors to look out for, as per analysts. Also, since the geographical areas are relatively large, the company’s earnings can see upside of 4-5% but only over a period of time, said analysts.
"With the Union Budget 2022 set to be announced, we expect the government to focus on investing in infrastructure that will allow for the total cost of logistics to reduce for the end customer. With some sections of the Western Dedicated Freight Corridor already operational, we look forward for the entire corridor to be completed connecting NCR and major maritime ports viz., Mundra, Piapavav and Nhava Sheva this year and continue its focus on improving infrastructure by prioritising other corridors like the North-South, East-West as well as the East-South and West South for uninterrupted rail movement of freight trains to facilitate domestic cargo movement. This will enable the logistics industry to keep moving ahead. In addition, there should be investments made towards digitization of supply chain management with a focus on new technologies like IoT. With the third pandemic wave and uncertain times ahead, the industry is expecting policy support and tax relaxations that will help boost ease of doing business for the industry. The logistics cost in India is around 5 percent more than the global average which leads to a huge competitive gap. The government should take steps to address the supply chain inefficiencies and reduce the gap."
India's gasoil sales declined in the first fortnight of January as rising COVID-19 infections hit consumer spending and truck movement in the country. Gasoil sales by the country's state fuel retailers amounted to 2.47 million tonnes during Jan. 1-15, data compiled by state-owned refiners showed, down by 14.1% from the same period in December and about 5% from a year ago. Sales were down about 8% from the same period in 2020. (Reuters)
Since the launch of BSE SME Exchange on 13th March 2012, a total number of 359 small and medium enterprises (SMEs) have been listed so far at the exchange raising fund to the tune of around ₹3,800 crore and now their net market capital today is around ₹52,000 crore. This means, the Return on Equity (RoE) by the BSE SME Exchange in one decade has been around 14, which is huge because an investor has got ₹14 on one's Re 1 investment in these 10 year. This could become possible because the BSE SME Exchange has become an important platform for the SMEs to raise fund through Initial Public Offering (IPO), helping good number of merchant bankers and small ticket sized ace investors, who are better known as micro Rakesh Jhunjhunwala, Dolly Khanna, Vijay Kedia, etc.
Indian state refiner Hindustan Petroleum Corp will lift 45% more oil from Iraq this year to meet its expanded refining capacity, sources familiar with the matter said.
The refiner will buy 3.2 million tonnes or about 64,000 barrels per day (bpd) from Iraq this year, up from 44,000 bpd in 2021, they said.
The three-day initial public offering (IPO) of payment solutions provider AGS Transact Technologies will open for subscription this week on Wednesday, January 19. The price band of the three day initial share-sale has been fixed at ₹166-175 a share. The bidding for anchor investors will open on January 18 and the issue will conclude on Friday, January 21.
Paytm Payments Bank Ltd (PPBL) has today announced that it has issued over 4.5 lakh FASTags in the month of December 2021. It has registered a month-on-month growth of 11.33% in FASTag sales. PPBL FASTag has seen immense popularity in India, as it offers seamless onboarding with minimum documentation, instant activation and unmatched customer care support. PPBL FASTag has become a significant contributor for onboarding new users, which is also driving revenue for the bank, the company said.
Shares of Brightcom Group surged 5% to ₹191 apiece on the BSE in Monday's early deals after the company announced the proposal regarding issuance of bonus shares which will considered by its board next week on Tuesday, January 25.
Shares of Motherson Sumi Systems surged nearly 3% to ₹190 apiece on the BSE in Monday's early deals on the record date which is today. The stock started trading ex-DWH business on Friday ahead of its record date, with DWH scheduled to listed separately by March 2022.
Year 2021 was a remarkable year for Indian stock market as it gave a good number of multibagger stocks and multibagger penny stocks despite global economy reeling under Covid-19 pandemic heat. Riding on the participatory rally post-Covid-19 selloff, some stocks gave stellar return to its shareholders in last one to two years. Kwality Pharmaceuticals shares are one of them. This Ashish Kacholia portfolio stock has surged from ₹25.55 (close price on 26th December 2019 on BSE) to ₹768.95 levels (Close price on 14th January 2022 on BSE), appreciating around 2900 per cent in these near 2 years.
It's well known that retail investors follow Rakesh Jhunjhunwala portfolio for value picks but it seems that mutual funds also scan Rakesh Jhunjhunwala holdings. As per the shareholding pattern of 5 Big Bull-owned companies for Q3 Fy2021-22, mutual funds have raised their stake in the recently ended December 2021 quarter. Those 5 Rakesh Jhunjhunwala companies are Delta Corp, Titan Company, Escorts, NALCO and Man Infraconstruction.
HDFC Bank has again hiked the interest rates on fixed deposits (FDs). The increased rates of interest are applicable on FDs starting from 12 January 2022. HDFC Bank has increased the rates on select tenors.
Latest FD rates here.
6 stocks to buy or sell today — 17th January.
Indian ace investor and stock market trader Ashish Kacholia's name has appeared in the December 2021 shareholding pattern released by the newly listed stock SJS Enterprises. Shares of SJS Enterprises were trading over 6% higher at ₹452 apiece on the BSE in Monday's early deals. The stock is up over 17% in the last one month.
The Index has opened on a tepid note this morning, unsure of the direction it should take. The trajectory continues to remain positive for a potential target of 18500-18600. The weekly support is upgraded to 18100 and as long as that holds, traders can accumulate long positions on the Nifty for higher targets.
Weakness in fees from payments business a new niggle to contend with
(1) Payments business’ fees de-grew YoY despite credit card spends rising 24% YoY.
(2) Asset quality issues eased on sequential basis, with credit costs including contingent provisions declining to 94 bps, down ~36 bps QoQ.
(3) Growth has been more broad-based than has been generally observed over the past ~2 years.
(4) We maintain ‘Add’ rating on HDFCB with a revised price target of ₹1735.
IT firm HCL Technologies Ltd on Friday reported a 13.6% fall in net profit to ₹3,442 crore for the December 2021 quarter and said it expects to see a strong deal pipeline on the back of a robust demand environment. Shares of HCL Tech tanked over 6% to ₹1,25 apiece on the BSE in Monday's opening trade.
What should investors do?
While stock market analysts are busy recommending multibagger stocks for 2022, some stocks have already entered the list of multibagger penny stocks for 2022 in India. Sacheta Metals shares are one of them. Tagged as a penny stock, Sacheta Metals share price surged from ₹19.55 to ₹47.55 apiece levels, yielding around 145 per cent return to its shareholders in 2022.
In cryptocurrencies, Bitcoin price today slipped below $43,000 as the world's most popular and largest digital token was trading around 0.5% lower at $42,873. Bitcoin has fallen nearly 7% since the start of the new year ( year-to-date or YTD). Meanwhile, the global cryptocurrency market cap today is flat at $2.19 trillion, as per CoinGecko.
Check cryptocurrency prices today.
Vodafone Idea, metal stock Steel Authority of India (SAIL) and Indiabulls Housing Finance, that were part of the ban in the previous sessions, continue to be among four stocks that have been been put under the ban for trade on Monday, January 17, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE).
Details here.
India's largest private sector bank HDFC Bank has reported an 18.1 per cent rise in its standalone net profit at ₹10,342.20 crore for the third quarter ended December 31, 2021, on improvement in loan growth and asset quality in the wake up of pick-up in demand. This is more than ₹8,758.29 crore net profit reported during the same quarter in the previous fiscal year.
HDFC Bank's total income on standalone basis grew to ₹40,651.60 during the said quarter in FY22 vs ₹37,522.92 crore
Oil prices rose on Monday, with Brent crude futures at their highest in more than three years, as investors bet supply will remain tight amid restrained output by major producers with global demand unperturbed by the Omicron coronavirus variant.
Brent crude futures gained 42 cents, or 0.5%, to $86.48 a barrel by 0022 GMT. The contract touched its highest since Oct. 3, 2018 - $86.71 - earlier in the session.
Here is the list of the top 10 stocks that are likely to be in focus on Monday.
China’s economy grew by 8.1% in 2021 after an abrupt slowdown in the second half that is prompting suggestions Beijing needs to shore up slumping growth.
In the final three months of 2021, the world’s second-largest economy expanded at a 4% annual pace, government data showed Monday. That is down from the previous quarter's 4.9% and an eye-popping 18.3% in January-March.
Activity slumped under pressure from Beijing on the real estate industry, a key growth driver, to cut debt levels that Chinese leaders worry are dangerously high.
Asian stocks were mixed Monday ahead of data expected to underline China’s economic slowdown and as traders weighed policy easing by the nation’s central bank.
Shares rose in Japan, were flat in Australia and slipped in South Korea. S&P 500 and Nasdaq 100 futures fell. The yen declined and a gauge of the dollar edged higher. U.S. stock and bond markets will be shut Monday for a holiday.
A real estate downturn and power shortages may have contributed to the weakest Chinese expansion in more than a year last quarter. The nation is also grappling with partial shutdowns to stem the spread of Covid-19. The People’s Bank of China lowered key policy rates.
Bond yields in Australia and New Zealand advanced after a slide in U.S. Treasuries at the end of last week. The 10-year U.S. yield is back up at levels seen before the pandemic roiled global markets in 2020.
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