Market At Close
- Market Extends Thursday’s Fall To Record The Biggest One-day Drop In 2021
- Sensex Slips Below 49,000 & Nifty 14,400; Nifty Bank Closes 3% Lower
- 42 Nifty Stocks Close In The Red; Axis Bank, Asian Paints, JSW Steel Top Losers
- Nifty Ends 219 Points Lower At 14,372 & Sensex 746 Pts Lower At 48,879
- Nifty Bank Sees A Decline Of Over 1,000 Points For The 1st Time In Last 1 Month
- Midcap Index Slips 268 Points To 21,659 & Nifty Bank 1,020 Pts To 31,167
- Autos Gain In A Weak Trading Session, Led By Bajaj Auto & Hero MotoCorp
- Biocon Drops 11% & Bandhan Bank 8% After Lower-than-expected Earnings
- SRF Mgmt’s Optimistic Commentary Fails To Boost Sentiment, Stock Down 6%
- Indian Bank Gains 2% While Symphony Falls Nearly 5% After Q3 Earnings
- Market Breadth Favours Declines; Advance-Decline Ratio At 1:3
Closing Bell | The Indian benchmark equity indices, Sensex and Nifty ended sharply lower Friday dragged by heavy selling in metals and banking stocks. The Sensex ended 746.22 points or 1.50 percent lower at 48,878.54 while the Nifty plunged 218.45 points or 1.50 percent to close at 14,371.90.
Steep losses in banking heavyweights dragged Nifty Bank more than 3 percent. Broader indices also reeled under pressure with Nifty Midcap100 index falling 1.22 percent and Nifty Smallcap100 declining 0.58 percent. Barring Nifty Auto and Nifty IT, all other sectoral indices ended in the red.
On the Nifty, Axis Bank, Asian Paints, JSW Steel, ICICI Bank and Hindalco Industries were the top losers, while Bajaj Auto, Hero MotoCorp, Eicher Motors, Hindustan Unilever and UltraTech Cement were the top gainers.
Christopher Wood remains bullish on Indian markets despite run-up; prefers real-estate sector
Jefferies' Christopher Wood has maintained a bullish view on the Indian equities in 2021, not deterred by the Sensex's bull run. The frontline BSE index touched scaled the 50,000 mark for the first time ever on January 21, rising nearly 100 percent from its multi-year low, hit in March 2020, owing to the coronavirus-induced economic slowdown.
In this week's GREED & fear report, Woods says the key reason for this surge is the scale of the cyclical recovery in the coming fiscal year post the dramatic collapse in growth in the Q2 of 2020 when the real gross domestic product (GDP) declined by 23.9 percent YoY in that quarter. For FY22, Wood sees real GDP rising by 13.2 percent, YoY.
The only reason for a bull market correction, according to Wood, will be a massive economic downturn or a material tightening in US Federal Reserve's (US Fed) policy. But, he doesn't see the possibility of either of these catalysts materialising in the near term. Continue reading.
Mangalam Organics | The company’s net profit in Q3FY21 jumped to Rs 30 crore from Rs 4 crore, while revenue increased to Rs 108 crore from Rs 81 crore, YoY.
Gold slips as yields gain, but set for best week in five
Gold fell on Friday as US Treasury yields rose, though the metal was on course for its best week in five helped by hopes of a large US stimulus, a Reuters report said. Spot gold fell 0.6 percent to $1,859.10 per ounce by 0828 GMT, retreating from a near two-week peak hit on Thursday. For the week, it rose 1.8 percent - its biggest weekly gain since the week ending December 18. US gold futures eased 0.3 percent to $1,860.90. Benchmark 10-year US Treasury yields held firm above 1 percent, helping the dollar rise.
SBI Life Insurance Q3FY21 | The company’s net profit declined 41.6 percent to Rs 232.9 from Rs 399 crore, YoY. The net premium income rose 17.7 percnet to Rs 13,766.5 crore from Rs 11,694 crore, YoY.
Symphony Q3FY21 | The company's net profit fell 47.1 percent to Rs 27 crore from Rs 51 crore while revenue declined 25.5 percent to Rs 216 crore from Rs 290 crore, YoY. EBITDA decreased 51.5 percent to Rs 33 crore as against Rs 68 crore, YoY.
Ramkrishna Forgings Q3FY21 | The company's consolidated net profit was reported at Rs 14.8 crore as against Rs 2.3 crore, YoY. Consolidated revenue jumped 41.8 percent to Rs 402.9 crore from Rs 284 crore, YoY. EBITDA increased 54.4 percent to Rs 75.9 crore from Rs 49.2 crore and EBITDA margin stood at 18.8 percent as against 17.3 percent, YoY.
Kopran Q3FY21 | The company's net profit jumped to Rs 15.7 crore from Rs 6.3 crore while revenue increased 11.8 percent to Rs 112 crore from Rs 100.2 crore, YoY. EBITDA rose 73.1 percent to Rs 21.1 crore as against Rs 12.2 crore and EBITDA margin stood at 18.8 percent as against 12.2 percent, YoY.
Market Watch: Hemen Kapadia of KRChoksey Securities
Buy on MGL at Rs 1,030 stop loss Rs 1,000 target of Rs 1,090. Oversold support on a 55-day moving average, a positive divergence on the intraday charts. So a buy on Mahanagar Gas.
Secondly a buy on SBI Life Insurance, once again it is a contra call, slightly high risk, a small amount can be added to our viewers. Buy on SBI Life at Rs 860, stop loss Rs 835 and target Rs 910. Once again weekly oversold, positive divergences on the hourly charts.
Lastly, buy call on Dr. Reddy's Laboratories, stop loss Rs 4,940 target Rs 5,100. Call would be valid for around 3-4 trading sessions.
HDFC Bank stock falls after Sebi imposes Rs 1 crore fine
Shares of HDFC Bank on Friday fell by over 1 percent after Sebi imposed a penalty of Rs 1 crore for invoking securities pledged by stockbroker BRH Wealth Kreators in violation of the regulator’s interim directions In an order on Thursday, Sebi noted that the instant proceedings have essentially arisen on account of non-conformity by HDFC Bank with the directions contained in the interim order issued by Sebi against BRH Wealth Kreators and other entities on October 7, 2019.
In addition, the bank has been directed to transfer Rs 158.68 crore along with 7 percent interest per annum into an escrow account till the issue of settlement of clients’ securities is reconciled.
Om Metals Infraprojects | The company has received the Letter of Award (LOA) from Government of Punjab for project works of Shahpurkandi power house project with value of Rs 621 crore for the construction of Two power houses, their appurtenant works an part of Hydel Channel of Shahpurkandi Dam Project on EPC mode from Water Resource Department, Government of Punjab, Shahpurkandi Township.
Indigo Paints IPO subscribed over 16 times
The public offer of Indigo Paints has been subscribed 16.24 times so far on January 22, the final day of bidding, receiving bids for 8.96 crore equity shares against the IPO size of 55.18 lakh shares (excluding anchor book), the subscription data available on exchanges showed. The portion set aside for qualified institutional buyers witnessed a subscription of 12.24 times and that of non-institutional investors was subscribed 35.24 times. The retail investors have put in 12.36 times bids against their reserved portion.
Yash Gupta Equity Research Associate, Angel Broking
We expect the market to be volatile till the budget. On upside 14,700 will be a hurdle for nifty and 14,300 on the downside till this expires on 28th January 2021. We suggest Long Investors should be cautious on the market and can have some cash in their portfolio to buy on dips and Intraday traders to trade with strict stop loss
Caplin Point | Caplin Steriles, subsidiary of Caplin Point Laboratories, has been granted final approval from the United States Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Argatroban Injection, 50 mg/50 ml (1 mg/ml) Single-dose vial presentation, a generic therapeutic equivalent version of (RLD), Argatroban Injection, of Hikma Pharmaceuticals Limited.
Alembic Pharmaceuticals | The company has received USFDA approval for Midodrine Hydrochloride Tablets, used for the treatment of symptomatic orthostatic hypotension
Home First Finance Company IPO Day 2: Issue subscribed 1.34 times so far; retail portion booked 1.88 times
The Rs 1,153 crore-initial public offering (IPO) of mortgage lender Home First Finance Company India Limited was subscribed 1.34 times on Friday, the second day of bidding. The issue has received bids for 2.09 crore equity shares till 12 noon against an offer size of more than 1.56 crore shares, according to data available on the exchanges.
The portion reserved for retail investors has been subscribed by 1.88 times and that of non-institutional investors by 0.15 times. The portion set aside for qualified institutional buyers was subscribed 1.28 times.
Bandhan Bank shares fall over 5% as brokerages raise concerns over credit cost
The share price of Bandhan Bank declined over 5 percent in early trade on Friday after certain brokerages cut FY21 earnings estimates for the bank due to elevated credit cost seen ahead. On Thursday, the bank reported a 13.4 percent fall in Q3FY21 net profit to Rs 633 crore from Rs 731 crore for the year-ago period. Its core net interest income grew 34 percent to Rs 1,541 crore on the back of a widening in net interest margin to 8.3 percent from 7.9 percent and 22.6 percent growth in the loan book.
Brokerages have raised concerns over the bank’s higher than expected credit costs and uncertainties lying ahead over the political promises of microfinance loan waivers in Assam and West Bengal. “Bandhan Bank’s 3QFY21 net profit of Rs 6.4 billion missed our estimate by 20 percent primarily due to a higher-than-expected credit cost. Bandhan’s collections plateaued in November 2020 and recent political events in Assam have led to a more than 10percent drop in collections in Assam in January 2021,” CLSA said.
More here
Stove Kraft IPO: Issue opens for anchor investors, grey market premium jumps 26%
Stove Kraft was trading at a premium of 26 percent more than its higher issue price band of Rs 385 per share in the grey market after the company announced its IPO on Thursday. The initial public offer for anchor investors will open for subscription by anchor investors today. The stock was trading at a premium of Rs 90-100 per share, meaning the grey market speculates its value to be around Rs 475-485. The 400 crore IPO of Stove Kraft will hit the market for retail investors on January 25 in the price range of Rs 384-385 apiece. Its public issue comprises a fresh issue of Rs 95 crore by the company and an offer for sale of Rs 82.50 lakh shares by promoters and investors. More here
Earnings Review: Bajaj Auto shares jump 10% to hit 52-week high; should you buy?
Shares of Bajaj Auto rose nearly 10 percent to hit 52-week high on Friday after the auto major clocked its highest-ever standalone profit and turnover in the December quarter. The company's standalone net profit rose 23 percent year-on-year to Rs 1,556.28 crore versus Rs 1,261.6 crore in the year-ago period. The rise in profit was driven by a rise in volume growth and operating performance. Bajaj Auto recorded the highest ever turnover which for the first time ever exceeded Rs 9,000 crore and the highest ever profit after tax at over Rs 1,500 crore.
Most brokerages were also bullish on the stock post such strong results in the December quarter. Brokerage house CLSA maintained its 'outperform; rating but raised its target price from Rs 3,725 to Rs 3,915. It also increased FY21-23 EPS estimates by 5-6 percent to factor a better outlook for exports and operating cost management.
Market Watch: Ashish Kyal of Waves Strategy
“The first stock on the buy side is Solara Active Pharma, we can clearly see this stock is outperforming within the pharma space, form some kind of a triangular pattern, giving a breakout on the upside, bouncing back from the important average, increase in the volumes and the RSI is also supporting. So I think Solara Active can be a buy from here keeping a stop loss of Rs 1,299 for the target of Rs 1,445.”
“The next stock on the buy side is from the auto ancillary space Amara Raja Batteries. We can clearly see this space is buzzing around. Auto stocks have been the flavour of the week and that is what we can see in Tata Motors, Maruti and other ancillary stocks like Apollo Tyres. I think Amara Raja Batteries should start catching up big time on the upside. One can initiate a long positions here riding that third wave on the upside for the target of Rs 1,080 with a stop loss of Rs 970 on downside.”
Disclaimer: The analyst does not hold any of these stocks which I have disclosed right now.
Oil prices fall as China's surging COVID-19 cases trigger clampdowns
Oil prices dropped on Friday, retreating further from 11-month highs hit last week, weighed down by worries that new pandemic restrictions in China will curb fuel demand in the world’s biggest oil importer. U.S. West Texas Intermediate (WTI) crude futures dropped 53 cents, or 1 percent, to $52.60 a barrel at 0445 GMT, after slipping 18 cents on Thursday. Brent crude futures fell 45 cents, or 0.8 percent, to $55.65 a barrel, erasing a 2 cent gain on Thursday. Recovering fuel demand in China underpinned market gains late last year while the United States and Europe lagged, but that source of support is fading as a fresh wave of COVID-19 cases has sparked new restrictions to contain the spread.
