Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
14,250 worked as a stiff resistance and we did see a sharp fall in the market. Although we did rebound from the lows, I would advise caution as sharp movements cannot be ruled out. Hence strict stops should be maintained and traders should initiate long positions only on dips or corrections.
Market At Close
Sensex & Nifty Slip From Record Highs Hit In Morning Trade To Close In The Red
Nifty Bank & Midcap Index Close In The Green But Off Highs
Nifty Ends 53 Points Lower At 14,146 & Sensex 264 Points Lower At 48,174
Midcap Index Closes 118 Points Higher At 21,652 After A Trading Range Of 405 Points
Nifty Bank Ends 76 Points Higher At 31,798; ICICI Supports While HDFC Bank Drags
Market Breadth Slightly In Favour Of Declines; Advance-Decline Ratio At 3:4
Power Grid, GAIL, Hindalco, Shree Cement Top Nifty Gainers
Bharti Airtel Rises 2% After Co Moves SC, Citing Computation Error In AGR Dues
ITC Top Nifty Loser On Reports Of Govt Planning To Raise The Age Limit For Smoking
Reliance Remains Under Pressure For The 2nd Straight Day
Titan Fails To Hold Gains Seen After Q3 Biz Update, Closes With A Minor Gain
IDFC First Bank Gains More Than 4% After Reporting A 40% Growth In Q3 Deposits YoY
Venkys Falls 6% After Govt Confirms Bird Flu Cases In Some States
Lupin Slips 4% After The Release Of FDA Observation Details Of Somerset Unit
Closing Bell | The Indian benchmark equity indices, Sensex and Nifty ended lower Wednesday dragged by selling in IT and FMCG stocks amid mixed global cues. The Sensex ended 263.72 points or 0.54 percent lower at 48,174.06, while the Nifty declined 53.25 points or 0.38 percent to close at 14,146.25. Nifty Midcap outperformed the benchmarks ending over 0.5 percent higher. Among sectors, Nifty IT and Nifty FMCG fell the most over 1 percent each followed by Nifty Auto, Nifty Pharma and Nifty PSU Bank while Nifty Metal, Nifty Realty and Nifty Financial Services ended in the green.
IOC buys its first cargo of Iraqi Basra Medium oil
Indian Oil Corp (IOC), the country's top refiner, has loaded its first cargo of Iraq's new Basra Medium crude grade which was introduced this year, according to ship tracking data from Refinitiv Eikon and a source with knowledge of the matter, a Reuters report said.
IOC loaded the cargo onto Minerva Kalypso, a suezmax-sized vessel, which left Iraq's southern port of Basra on Jan. 4, the data showed. The ship is expected to arrive at Chennai port in southeastern India around Jan. 14.
Iraq has increased Basra crude exports by introducing this new grade after the Organization of the Petroleum Exporting Countries and its allies agreed to raise output by 500,000 barrels per day (bpd) in January.
"From this year IOC will get all three grades - Basra Light, Basra Medium and Basra Heavy - depending on the availability with the supplier," the source said, adding that the 1 million barrels of Basra Medium crude would go to IOC's subsidiary Chennai Petroleum Corp.
Bank of Baroda | The public sector lender has signed a memorandum of understanding (MOU) with the Small Industries Development Bank of India (SIDBI) to support MSME enterprises with an online facility of submitting their loan restructuring proposal.
IDFC First Bank | Total deposits in Q3FY21 increased 41 percent YoY and 11 percent QoQ to Rs 77,289 crore. Retail Deposits increased 100 percent YoY to Rs 58,435 croer as on December 31, 2020, from Rs 29,267 crore as on December 31, 2019.
Tata Motors | Jaguar Land Rover UK sales in December rise 28.6 percent to 7,934 units as against 6,171 units in the same month last year. Jaguar sales rise 82.5 percent and Land Rover up over 5 perecnt.
New pipeline to increase revenue by Rs 180 cr per year over 1-2 years, says Petronet LNG
The Kochi-Mangaluru pipeline will increase the revenue of Petronet LNG by Rs 180 crore per year for the next 1-2 years, said Vinod Kumar Mishra, Director-Finance of the company. "The Kochi-Mangaluru pipeline is a boon to Petronet LNG," he said.
The Kochi-Mangaluru pipeline was inaugurated by Prime Minister Narendra Modi on Tuesday. The work was given to the LNG terminal of Petronet LNG in Kochi for the 450-km natural gas pipeline between Kochi in Kerala to Mangaluru in Karnataka.
The gas pipeline will ensure supply to domestic as well as commercial establishments across the region. Read more here.
NMDC hikes prices yet again taking overall increase to 50% in last month
State-owned NMDC (National Mineral Development Corporation) has hiked prices again, as per people in the know.
Overall, there have been three price increases in the last 35 days and together it amounts to a hike of 45-55 percent.
NMDC last Friday posted over 23 percent rise in iron ore output at 3.86 million tonnes (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 percent from 3.04 MT in December 2019. Read more here.
Market Update | The Indian benchmark equity indices, Sensex and Nifty traded near day’s low Wednesday afternoon amid sharp selling in IT, FMCG and auto stocks. The Sensex was trading at 48,028.49, down 409.29 points, or 0.84 percent, while Nifty declined 83.00 points, or 0.58 percent, to 14,116.50 at 2:07 pm. Weakness in index heavyweights such as Reliance Industries, ITC and Bajaj Finance dragged Nifty below the 14,150 level. Barring Nifty Metal, all other sectoral indices were trading in the red.
Buzzing | Here’s why Tata Elxsi is seeing an upmove
Tata Elxsi has advanced by as much as 26 percent over the last 10 days, outperforming the Indian IT index which is up 13 percent in the same period as well as Nifty200.
Tata Elxsi’s 10-day average volumes are 33 percent higher than the 3-month daily average volumes. Delivery volumes are up 13 percent as compared to 3-month daily average volumes.
The stock is rising on expectations of a recovery in its largest vertical – automotive sector, and media as well as medical device verticals. Watch here.
Standout Brokerage Report: Macquarie raises price targets on these NBFCs
Macquarie has come out with a report on non-banking financial companies (NBFCs). The brokerage house believes that the collection data should hold up well in Q3 for most of the NBFCs while the growth outlook is a bit weak.
According to Macquarie, the auto industry should see a margin expansion and hence the brokerage firm has raised the target price on Mahindra and Mahindra Financial Services, Shriram Transport Finance and Cholamandalam Investment and Finance. Watch here.
Bitcoin breaks above $35,000 to touch new high
Bitcoin traded above $35,000 for the first time in Asia on Wednesday, rising to a high of $35,879 and extending a rally that has seen the digital currency rise more than 800 percent since mid-March, Reuters reported. The world's most popular cryptocurrency crossed $20,000 for the first time ever on December 16.
Fitch rates Shriram Transport's bonds at BB (EXP)
Fitch Ratings has assigned India-based Shriram Transport Finance Company Limited's (STFC, BB/Negative) proposed US dollar-denominated senior secured notes an expected rating of 'BB(EXP)'.
Crude Oil hits 11-month high after Saudi Arabia pledges voluntary output cut
Oil prices rose on Wednesday to their highest since February 2020 after Saudi Arabia agreed to reduce output more than expected in a meeting with allied producers, while industry figures showed U.S. crude stockpiles were down last week, a Reuters report said.
Brent crude rose as much as nearly 1% to $54.09 a barrel, the highest since Feb. 26, 2020. It was at $53.87 a barrel at 0536 GMT after jumping 4.9% on Tuesday.
U.S. West Texas Intermediate (WTI) futures reached $50.24 a barrel, also the highest since Feb. 26, before slipping to $50. The contract on Tuesday closed up 4.6%.
Saudi Arabia, the world's biggest oil exporter, agreed on Tuesday to make additional, voluntary oil output cuts of 1 million barrels per day (bpd) in February and March, after a meeting with the Organization of the Petroleum Exporting Countries (OPEC) and other major producers that form the group known as OPEC+.
The reductions agreed by Saudi Arabia were included in a deal to persuade other producers in the OPEC+ group to hold output steady.
Motilal Oswal on Automobile Sector | We are revising our FY22E EPS estimates to factor in volume upgrades as well as substantial commodity cost inflation. We upgrade Tata Motors (+28%), Ashok Leyland (+11%), Bharat Forge (+11%), Motherson Sumi Systems (+14.5%), and Escorts (+6%), whereas downgrade Hero MotoCorp/Mahindra & Mahindra (-8%).
Being a seasonally slow month, Dec’20 saw decent demand (at par YoY) despite discounts being lower by ~50% YoY. Valuations are reflecting a recovery in 4QFY21, leaving a limited margin for safety from any negative surprises. Hence, we prefer companies with: a) higher visibility in terms of a demand recovery, b) a strong competitive positioning, c) margin drivers, and d) balance sheet strength. Mahindra & Mahindra and Hero MotoCorp are our top OEM picks. Among auto Component stocks, we prefer
Market Watch: Ruchit Jain of Angel Broking
First is a buy call in CONCOR, a fresh long formation today in the derivatives segment, technically the previous swings have been broken. The daily average volume has already been surpassed in the first half of the trade itself so this is a very positive sign so buy CONCOR with stop below Rs 417 for target of Rs 445.
Since banking is looking positive on midcap bank that is CSB Bank, it is trading around its support on a daily as well as the weekly charts so we are expecting some pullback move in this counter. Buy CSB Bank with stop loss below Rs 220 first target would be Rs 240 and once that surpasses Rs 250 would be on the banks.
Buzzing | BEML share price jumps over 4% on orders from Ministry of Defence
Shares of BEML rallied over 4 percent in early trade on Wednesday after the company bagged an order from Ministry of Defence for the supply of high mobility vehicles, at an approximate value of Rs 758 crore.
The equipment will be manufactured at BEML's Palakkad plant in Kerala and would supply the vehicles to Indian Army in a span of one year. These High Mobility vehicles would play a key role in the logistics management of the Indian Army leveraging on its exceptional cross country capabilities, the company said.
These vehicles would enable armoured fighting vehicles, troops, ammunitions and stores to be moved to far-flung, difficult terrains in operational areas, it added.
Bharti Airtel | The telecom major has moved Supreme Court seeking lowering of AGR dues. The company has cited miscomputation by DoT in AGR dues demand. Bharti Airtel claims that total AGR dues payable on account of license fee is limited to Rs 21,000 crore. DoT has slapped demand of Rs 43,989 crore and Bharti Airtel has paid Rs 18,004 crore as AGR dues.
India's services sector loses more steam in December, job cuts resume
Growth in India's dominant services industry continued to lose momentum in December as a resurgence in coronavirus infections weighed on new business and employment, a private survey showed on Wednesday. Asia's third-largest economy has been gradually recovering from a coronavirus-induced recession but is not expected to return to pre-pandemic levels soon, especially within the service industry - the engine of economic growth and jobs in the country, a Reuters report said.
The Nikkei/IHS Markit Services Purchasing Managers' Index fell to 52.3 in December from November's 53.7 but held above the 50-mark separating growth from contraction for a third straight month.
"A spike in COVID-19 cases was reported as a key factor restricting growth of new work intakes among service providers, which in turn curbed the rise in output and led to increased business uncertainty about the outlook," Pollyanna De Lima, economics associate director at IHS Markit, said in a release.
Buzzing | Titan jewellery business records 15% growth in Q3FY21; Shares hit 52-week high
Jewellery and watches maker Titan Company on Wednesday said that the company witnessed a good festive season with the Jewellery division crossing the recovery phase to enter the growth phase. In its December quarter update, the company said that the Q3 did not disappoint.
The company already announced the 15 percent growth in the 30-day festive period from Dussera to Diwali. The growth trend was visible even after the festive season ended and the division has recorded close to 15 percent growth (excluding sale of raw gold of - Rs 334 crore) in Q3.
“The quarter also witnessed a well-rounded recovery with improvement in walk-ins and pick up of sale in metros, sub 1-lakh category and studded segment. The studded mix in Q3 improved though still lower than levels seen in the previous year,” the company said.
