Stock Market Highlights: Indian equity benchmarks Sensex and Nifty50 suffered sharp losses on Wednesday, tracking weakness across global markets. Losses in IT, consumer and private sector financial stocks pulled the headline indices lower, though gains in auto, metal and PSU banking names lent some support. Broader markets were sluggish, with the Nifty Midcap 100 slipping 0.1 percent and the Smallcap 100 flat. Investors awaited more Q3 numbers from India Inc for cues, after Bajaj Finance's numbers beat Street estimates.
Thank you, readers! That's all from CNBC-TV18.com's live market coverage on January 19, 2022. Stay tuned for other updates on our website: CNBCTV18.com.
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Positive on realty companies, Godrej Properties remains favourite: Sudip Bandopadhyay
Sudip Bandopadhyay, Group Chairman of Inditrade Capital, is positive on real estate companies. His favourite from the sector continues to be Godrej Properties.
"We have been seeing good demand in the real estate space, particularly in residential housing, and it is happening across the country, in all the metros. Sobha Developers definitely has been a big beneficiary of the Bangalore market," he said.
Like auto, auto ancillary spaces: Rajesh Kothari
Rajesh Kothari, MD at AlfAccurate Advisors, likes auto as well as auto ancillary stocks. He believes auto valuations are quite reasonable now with growth expected to resume, after three challenging years for the entire original equipment manufacturer (OEM) space. "We like companies that are leaders in their respective fields. In auto ancillaries, we like players that are going to be major beneficiaries of new technology -- be it safety norms, more airbags or whether it is the transition to EVs. So both auto and auto ancillaries on a bottom-up basis can be a very rewarding story for the next three years,” he said.
Continue to hold Bajaj Finance, Q3 results impressive: AlfAccurate Advisors' Rajesh Kothari
Rajesh Kothari, MD at AlfAccurate Advisors, said Bajaj Finance's Q3 earnings were impressive particularly on the asset quality front. “We are holding 40 percent of our portfolio into the domestic recovery theme. It includes capital goods, banking, finance, logistics and so on. Bajaj Finance is one of the companies which we continue to hold... Bajaj Finance is the best way to play fintech and we continue to be positive on it,” he said.
JSW Energy a great opportunity: Prakash Diwan
Market expert Prakash Diwan sees a great opportunity in JSW Energy. "This space is one of the most promising going ahead. Not only has the performance in the last 18 months been stupendous, in fact, JSW is 10 times of what it used to be in May 2020. That is a different era that you are talking about. Going forward, the focus it has on renewables, and the shift towards renewables and efficiencies of their existing plants is remarkable. For that kind of a scale, it is not easy. So, if you look at Tata Power, Torrent Power or JSW Energy, these companies are doing what happened to the ferrous sector in terms of reset and absolute paradigm shift two years back when all the biggies started to do well," he said.
Diwan believes the same thing is happening in energy as well. "This correction that you are getting on JSW is a great opportunity. In fact, we had recommended clients to buy into it after this dip and these numbers justify the fact that it could catch up much faster than what was anticipated," he added.
Paytm shares close below Rs 1,000 mark for first time
Paytm parent One97 Communications' shares hit a record low on Wednesday, closing below the Rs 1,000 mark for the first time ever. The stock fell 4.3 percent to end at a record closing low of Rs 997.4 apiece on BSE. At this level, the stock changed hands at a discount of 53.6 percent to the issue price.
During the session, Paytm shares plunged as much as five percent to an all-time low of Rs 990. (Read more on Paytm shares)
Market At Close | Nifty below 18,000 for 1st time in last 8 sessions
Here are some highlights:
--Nifty Bank falls 169 points to 38,041; midcap index down 18 points at 31,363
--Bajaj Finance slips more than 6% from highs to close over 2% lower
--Bajaj Auto rises, HUL, Asian Paints fall ahead of earnings
--ONGC top Nifty gainer as crude extends gains; stock up 4%
--Coal India, Hindalco, Tata Motors, UPL, SBI rise
--Shree Cement, Infosys, Asian Paints, HUL, Adani Ports top Nifty losers
--Cement stocks slip for 2nd day; Shree down 3%, UltraTech 2%
--IT stocks slip following weakness in global peers; Infosys down 3%
--L&T Tech Q3 profit misses Street estimates; stock down 6%
--Midcap IT stocks under pressure; Birlasoft, Mphasis top losers
--ICICI Prudential falls 6% despite better-than-expected Q3
--Tata Elxsi rises 10% after strong earnings
--Biocon up 5% after brokerage upgrade
--Energy stocks rise after strong earnings by JSW Energy; Tata Power up 4% (Stocks that moved the most)
--Market breadth in favour of bears; advance-decline ratio at 3:4
Market At Close | Infosys, Shree Cement, Asian Paints, Adani Ports, HUL top blue-chip losers
Grasim, Bajaj Finance, HDFC Life, Nestle, Kotak Mahindra Bank and TCS were also among the top laggards. On the other hand, ONGC, Tata Motors, UPL, Coal India, Maruti Suzuki and SBI were among the top gainers.
Here's how the 30-scrip basket fared:
Closing Bell | Sensex down 656 points at 60,099, Nifty50 cracks below 17,950
The 30-scrip index fell 656 points or 1.1 percent lower at 60,098.8 and the broader Nifty50 benchmark settled at 17,938.4, down 174.7 points or one percent from its previous close. Losses in financial, IT and consumer stocks pulled the headline indices lower, though gains in automobile and metal shares lent some support. (Read more on the closing bell)
Nifty50 has support at 17,880: LKP Securities' Rupak De
Rupak De, Senior Technical Analyst at LKP Securities, said that during Wednesday's session, the Nifty slipped below its 10-day exponential moving average for the first time since December. "Two significant back-to-back red candles on the daily chart indicate weakness in the market that may extend over the near future. On the lower end, support is visible at 17,880, below which, the index may dip towards 17,750. Resistance is pegged at 18,050/18,200," he said.
Midcap IT space interesting, positive on KPIT, Birlasosft, Happiest: Prakash Diwan
Market expert Prakash Diwan finds the midcap IT space interesting at the current juncture. "The next round of midcap results are going to be very interesting. Even if it is expensive, a business like Happiest Minds Technologies is something which I seriously like. The likes of KPIT Technologies, Birlasoft and Happiest Minds have a very clear, strong, secular trend, which is in their favour. The earnings tragically is fairly strong," he said.
"If I had to buy into this correction, given the softness that is available right now, it would probably be some of those midcap names that I mentioned about and then hold on to those to for at least a couple of years for the story to pan out... So the price will follow. My sense is there is enough headroom for growth for these businesses as well," he added.
Diwan believes that largecap IT names remain expensive. Still, one can hold on to these stocks with a huge appetite, especially institutional investors. "This correction that we saw post numbers for the larger ones, like Infosys and TCS, is probably because of FII money going out. The moment those flows reverse or even if this gets stalled, and there is no negative, I don't think these stocks will see that kind of a correction that we have seen. If you actually look at even within the largecap space, you have HCL Tech, which is still available at 23-24 times, you have Wipro, which has done well and has corrected to give you that opportunity to get in. But you would have to have patience for at least the next 2-4 quarters for these stocks to deliver," he added.
Insurance regulator reduces obligatory premium to GIC Re to 4% from 5%
GIC Re shares rose as much as 0.9 percent to Rs 141.6 apiece on BSE. At 3:20 pm, the stock was left with a gain of 0.2 percent at Rs 140.7 apiece.
AGS Transact Technologies IPO subscribed 77% so far on Day 1
Mumbai-based AGS Transact Technologies' IPO was subscribed 77 percent so far on Wednesday, the first day of the bidding process. The IPO, which is entirely an offer for sale (OFS) of equity worth Rs 680 crore by promoters and existing shareholders, will close for subscription on Friday, January 21.
As of 2:39 pm, the AGS Transact Tech IPO received bids for 2.2 crore shares, as against the 2.9 crore shares on offer. (Read more on AGS Transact IPO)
JSW Energy shares jump 5% after earnings announcement
JSW Energy shares gained as much as five percent to Rs 319 apiece on BSE after the earnings announcement.
At 3 pm, the stock was up 3.4 percent at Rs 314.1 apiece.
Q3 Results | JSW Energy net profit nearly triples to Rs 324 crore
JSW Energy reported a consolidated net profit of Rs 324 crore for the December quarter, as against Rs 123.5 crore for the corresponding period a year ago. The company's revenue increased 17.1 percent on a year-on-year basis to Rs 1893.5 crore.
JSW Energy's earnings before interest, taxes, depreciation and ammortisation (EBITDA) increased 31 percent to Rs 791.1 crore. Its margin improved to 41.8 in Q3 from 37.5 percent in the year-ago period.
RBI digital payment index at 304.06 in Sept 2021
The index had stood at 270.59 in March 2021.
Paytm shares hit record low, slide below Rs 1,000 mark
Paytm parent One97 Communications' shares slumped to a fresh low. The stock plunged as much as 5 percent to Rs 990 -- the lowest intraday level recorded since its market debut in mid-November.
At this level, the stock changed hands at a discount of 54 percent to the issue price of Rs 2,150. (Read more on Paytm shares)
Finance Ministry issues guidelines for 3rd supplementary demand for grants for FY22
German yields turn positive for first time since 2019
Benchmark German debt yields on Wednesday climbed above zero percent for the first time since the start of the pandemic, as investors are betting on central banks to cut back on money infusion into the economy. The rate on 10-year government bonds rose to 0.011 percent -- a level that was last seen in May 2019.
The rise is in line with a similar trend seen in US bond yields, which have also risen to a two-year high. (Read more on German bonds)
Uptick expected in discretionary sales: HDFC Securities' Naveen Trivedi
Naveen Trivedi of HDFC Securities said in an interaction with CNBC-TV18 that an uptick is expected in discretionary sales going forward. Rural demand has been muted in the December quarter, he said.
Promoter raises stake in UPL to 28.24% in Q3 from 27.96% previous quarter
UPL shares were up 1.2 percent at Rs 808.8 apiece on BSE in late afternoon deals.
In the October-December period, the stock added 5.6 percent to its value.
Technical Picks | Amara Raja, Polycab, Infibeam, other stocks analysts recommend
Headline indices have retreated after coming within 1.5 percent of their all-time highs, touched in October 2021. The bulls are yet again showing signs of fatigue as the indices meet stiff resistance close to the peaks. Are there any trading opportunities on Dalal Street now?
Analysts have handpicked a few technical bets. On their playbook now are Prestige Estates, HEG, MRPL and Polycab, among others. (Check out all stock recommendations)
Q3 Results | Sterlite Tech December quarter net loss at Rs 137 crore
Sterlite Tech reported a net loss of Rs 137.1 crore for the December quarter, as against a profit of Rs 86.6 crore for the corresponding period a year ago.
The company's revenue, however, increased 3.1 percent on a year-on-year basis to Rs 1,355.5 crore.
It reported an EBITDA loss of Rs 50.7 crore for Q3, as against an EBITDA of Rs 230.1 crore for the year-ago period.
Sterlite Tech said it recorded an additional provision of Rs 116 crore related to ongoing projects.
Sterlite Tech shares were down 6.1 percent at Rs 253.3 apiece on BSE in the afternoon.
Remain bullish on metal pack: Rohit Srivastava
Rohit Srivastava, Founder and Strategist at Indiacharts.com, remains bullish on the metal pack as he believes that most of the negatives have been priced in. "If you look at steel stocks, the likes of Tata Steel, SAIL and JSW Steel have been consolidating for months now. They've also seen some kind of pullback. Whatever negatives people are trying to put in are probably priced in because of that correction. The only risk to metals is metal prices, which happens when the dollar spikes too much," he said.
"Technically, we have seen the momentum pick up. The weekly momentum indicators that we are tracking have actually crossed over to the 'buy' side already for the metal index. We are going to look at every pullback in the metal stocks as an opportunity to buy on dips," he added.
Supplies under e-auction grow 31% in April-December: Coal India
Coal India shares were up 1.4 percent at Rs 163 apiece on BSE, having risen as much as 2.5 percent earlier on Wednesday.
CNG sales driven by rising fuel prices, high availability of CNG stations: Tata Motors
Shailesh Chandra, MD at Tata Motors PV and Tata Passenger Electric Mobility, said in an interaction with CNBC-TV18 that the company's CNG sales are driven by rising fuel prices and high availability of CNG stations. The CNG segment will continue to grow in size, he said.
The company's hatchback and compact sedans are no longer viable in diesel, he said.
The coming decade will have a mix of internal combustion and electric vehicles, and it is imperative to move internal combustion engines to more environment-friendly fuels, he added.
The company has set a target to achieve 35 percnet sales of Tiago and Tigor through CNG, he added.
Do we have enough metals to go green using renewables and EVs?
As countries across the globe focus on cutting greenhouse gas emissions, researchers are working on developing a host of green technologies that will ease global heating. Apart from the rise in renewable energy sources, there is a surge in the production of electric vehicles, which are expected to curb dependency on fossil fuels and to fight climate change. (Read more)
Paytm shares hit fresh low of Rs 990
Paytm parent One97 Communications' shares fell as much as five percent to a fresh record low of Rs 990 apiece on BSE. At this level, the stock changed hands at a discount of 54 percent to its issue price of Rs 2,150.
Expect weak Q3 on semiconductor shortage, weak festive season: Elara Capital's Jay Kale
Jay Kale, Senior Vice President Research at Elara Capital, expects a weak December quarter for the auto space thanks to the shortage of semiconductors for passenger vehicles and a weak festive season for two wheelers. Commercial vehicles were the only positive because of better mining and construction activity, he said.
"A large part of the commodity pressures will be kind of seen in Q3 and that could be one of the last quarters before we see a recovery from Q4. If we see a pickup in demand in Q4, which was expected till a few days back, we are expecting that passenger vehicle should meaningfully improve in the fourth quarter, and then in FY23. Two-wheelers will take a bit of time... Auto is an interesting space to be in... It has kind of been under pressure even pre-COVID. With the expectation of a third wave waning off, I think we are at interesting times in FY23, where almost all segments are expected to post double-digit growth and margin expansion... Two stocks have been stellar: Tata Motors and Minda Industries," he added.