Market At Close
Market Closes Higher, Led By IT Majors Like Infosys & TCS
Midcap Index Outperforms Sensex, Nifty & Nifty Bank
Sensex, Nifty & Nifty Bank Gain 1% Each While Nifty Bank Climbs Over 2%
Nifty Closes 135 Pts Higher At 13,601 & Sensex 437 Pts Higher At 46,444
Nifty Bank Gains 257 Pts To 29,883 & Midcap Index 475 Pts To 20,440
Realty Index Gains The Most Amongst Indices; Godrej & Indiabulls Real Top Gainers
40 Nifty Stocks Close In The Green; Wipro, Cipla, Tata Steel, Infy Top Gainers
Dish TV Surges 11% On Reports Of Changes To DTH Policy
NCC Considering Issuing Warrants To Promoters Helps Stock Gain Over 10%
Aviation Stocks Move Higher On Minister’s Comment Of Reaching Pre-COVID Lvls Soon
Market Breadth Favours Advances With NSE Advance-Decline Ratio At 7:1
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty has gained over 50 percent of the sharp fall it had earlier this week. What needs to be seen is if we are able to cross the 13,700-13,800 levels on a closing basis as that could prove to be a runway to achieving 14,000. I would still suggest caution until we have not crossed the above levels.
Closing Bell | The Indian market ended 1 percent higher on Wednesday led by strong gains in IT, FMCG and PSU banks. The benchmark Sensex jumped 437.49 points or 0.95 percent to 46,444.18, while the Nifty ended 134.80 points or 1.00 percent higher at 13,601.10. Broader markets, Nifty Midcap100 and Nifty Smallcap100 outperformed the benchmarks with more than 2 percent gains. All the sectoral indices ended in the green.
Market Update | Indian equity market was trading at day's high level with the benchmark Sensex rallying over 400 points. Infosys, Hindustan Unilever, IndusInd Bank, SBI and M&M were the top index gainers.
Dhampur Sugar | The company’s board has approved the expansion of distillery capacity from 1.50 lakh LPD to 2.50 lakh LPD at Asmoli unit in Uttar Pradesh.
Larsen & Toubro | L&T has won orders between Rs 2,500-5,000 crore for the water and waste treatment business. The Water and Effluent Treatment business has secured multiple EPC orders for the execution of rural piped water supply schemes in various districts of Madhya Pradesh. The projects are part of Jal Jeevan Mission and cover the districts of Guna, Ashoknagar, Shivpuri, Agar Malwa Et Singrauli.
Buzzing | Stock price of WPIL surged over 16 percent after the company won two projects. WPIL received letters of intents from Madhya Pradesh Jal Nigam for two projects for an aggregate amount of Rs 851.31 crore to be executed in over 30 months.
Buzzing | Share price of Ramco Systems rallied over 9 percent after the company signed a multi-million dollar deal with a Global Fortune 500 major to unify and transform its Payroll for 18 countries in Asia Pacific region on Ramco’s Managed Payroll Services.
Market Watch: Aditya Agarwala of Yes Securities
Cipla is one stock which I like from the pharmaceutical space. It is on the verge of a breakout from an ascending triangle pattern. At current levels one can go ahead and accumulate Cipla for target of Rs 860 on the upside, keeping a stop loss of Rs 780 on the downside.
Hindustan Unilever (HUL) from the FMCG space is seeing good outperformance and after consolidation, up move is starting in the stock. So one can go ahead and buy HUL at current levels for target of Rs 2,440 on the upside, keeping a stop loss at Rs 2,260 on the downside.
Eicher Motors, whose stock grew Rs 1 lakh to Rs 20 lakh in 10 years, outlines plan for next decade
Eicher Motors is among the top 25 wealth creators over last 25 years according to Motilal Oswal Wealth Creation Study. A market cap of Rs 100 crore in 1995 to Rs 66,000 crore in 2020. Vinod Dasari, CEO of Royal Enfield discussed the future roadmap of the company. “Over the 10 years we have set out a vision very clearly. We need to be a global motorcycling brand and we must be at least a USD 5 billion revenue over the next five-ten years and maintain our margins of north of 20 percent,” he said in an interview with CNBC-TV18. The company has a three-pronged strategy in international market, the developed markets, the emerging markets and the fast growing markets. More here
Infosys fastest wealth creator in 25 years; RIL biggest: MOSL
IT major Infosys has emerged as the fasted wealth creator in the last 25 years. As per Motilal Oswal Financial Services’ annual wealth creation study, Infosys clocked a robust price compound annual growth rate (CAGR) of 30 percent to emerge as the fastest wealth creator between 1995 and 2020. This was backed by a 25-year PAT CAGR of 33 percent, it added. Meanwhile, Reliance Industries was the biggest wealth creator in this period, creating wealth worth Rs 6.3 lakh crore in 25 years, the report noted. However, the study added that most of the gains came in the last five years. Between 2015 and 2020, the firm added Rs 4.4 lakh crore in wealth. It also observed that RIL is significantly ahead of the second-biggest wealth creator HUL, which accounted for Rs 4.9 lakh crore wealth.
More here
Strong run in IT stocks likely to continue: Aditya Birla Sun Life AMC
After a solid performance in 2020, IT shares may continue to do well next year, according to leading fund manager Mahesh Patil. In an interview with CNBC-TV18, Patil, Co-Chief Investment Officer, Aditya Birla Sun Life AMC, said that the sector was expected to clock double-digit revenue growth after many years. “In that scenario, the stocks will continue to do well,” he said. “While valuations look to be on the higher side, the sector has the best narrative. The order pipeline too is very strong.” Patil added that the economic recovery from the pandemic looks to be taking place across the board. “A lot of sectors, which were depressed are looking up and also the outlook for flows into the emerging markets (EMs) is looking very strong getting into the next calendar year.” For the full conversation, watch video
Nifty likely to remain in bull market, reach 16,200 in 2021: ICICI Direct
After witnessing a multi-year level in March, the benchmark Nifty has shown a V-shaped recovery and has risen around 80 percent from those levels. The index turned positive for the year and is up over 11 percent YTD driven by improving sentiment. Analysts expect this rally in the Indian equity market may continue in 2021 and any intermittent corrections should be utilized as buying opportunities. “Nifty is expected to remain in a structural bull phase with upside target of 16,200 that is implied by the three year’s consolidation breakout (12,200-8,000),” ICICI Direct said in a report. Within the bull phase, a normal correction of 15-20 percent cannot be ruled out, it added. More here
Cairn Energy wins investment treaty arbitration against India over tax dispute
Cairn Energy has won an international arbitration case against the Indian government over a tax dispute, ending one of the country's highest-profile disputes, two sources with direct knowledge of the matter told Reuters. Cairn took the case to arbitration in 2015 to fight against a demand in 2014 from the Indian tax department for 102 billion rupees (USD 1.4 billion) in taxes it said were owed on capital gains related to the 2007 listing of its Indian unit. In 2011, Cairn Energy sold its majority stake in Cairn India to Vedanta Ltd, reducing its stake in the Indian company to about 10 percent. The Indian government seized the remaining shares in 2014 after the tax complaint was made, as well as dividends Vedanta owed to Cairn Energy for its holdings in the Indian firm.
More here
Industries in Delhi to switch over to PNG by January 31, says IGL
AK Jana, MD of Indraprastha Gas (IGL), on Wednesday said that around 1,670 industries have been identified in Delhi that should shift to piped natural gas (PNG). In a conversation with CNBC-TV18, Jana said, “We are targeting to complete this by January 31, 2021, and I am very much hopeful that 100 percent conversation will be there.” On numbers, he said, “We were hopeful that we will be able to achieve what we had achieved last year, but looking at the current situation (COVID globally), we are expecting 10 percent less than what we achieved last year.” For more details, watch the video
JUST IN: ICICI Bank says RBI has approved the appointment of Sandeep Batra as Executive Director of the Bank for three years
See another 14-15 quarters of good numbers for IT, says Edelweiss's Sandip Agarwal
There will be another 14-15 quarters of good numbers for the IT companies, said Sandip Agarwal, Research Analyst-Institutional Equities, Edelweiss Securities. According to Agarwal, we are in a very long multi-year upcycle.
“..We are just in the second or third quarter of this phase of upcycle,” Agarwal said in an interview with CNBC-TV18.
“We like HCL Technologies, Infosys, Tata Consultancy Services (TCS) in largecap names and in midcap, we continue to believe that Mindtree and TCS will generate equal shareholder value that Infosys and TCS have created – by 2034 or before. So they are multi-baggers," he said. Read more here.
Buzzing | Shares of Glenmark Pharmaceuticals gained 2 percent after the pharma major announced that its Swiss subsidiary, Glenmark Specialty S.A., has entered into an exclusive licensing agreement with Menarini Group (Menarini) for commercializing its innovative nasal spray Ryaltris across 33 countries in Europe, including the Balkan region.
Keshav Lahoti Associate Equity Analyst, Angel Broking
Burger King India made a stellar listing on the exchange by listing at 87.5% above its issue price and is currently trading at 201% above issue price. Currently, the stock is trading at 6.2x on FY20 EV/sales basis. Short term investors can book profit at the current market price. Investors with a long-term horizon can keep their money invested in the stock as growth prospects of the company are promising and as operating leverage will kick in, it will improve the company's margins.
Breaking | The government of India is planning to make airbags for the front passenger seats mandatory. The Ministry of Road Transport and Highways (MoRTH) is yet to issue a draft notification in this regard. Auto sector representatives are in touch with the MoRTH over the issues.
Just In | Cairn Energy has won USD 1.2 billion in damages from the Indian government. Cairn had invoked Arbitration under the Bilateral Investment Protection Agreement.
