KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty Halt Two-Week Losing Streak
Indian stocks halted their two-week losing streak.
The S&P BSE Sensex rose 0.35 percent this week to close at 41,599.72 and the NSE Nifty 50 rose 0.24 percent during the period to end at 12,256.50. The broader markets represented by the NSE Nifty 500 Index rose 0.34 percent.
On Friday, the 30-stock index rose 0.36 percent and the 50-share gauge rose 0.33 percent.
The market breadth was tilted in favour of buyers. About 983 stocks advanced and 807 shares declined on National Stock Exchange.
Ten out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Realty Index’s 1.8 percent gain. On the flipside, the NSE Nifty Private Bank Index was the only sectoral loser, down 0.18 percent.
Fab Four Stocks Of The Day
KNR Constructions
- Stock rose as much as 10.6 percent to Rs 281.40.
- Company to sell its Walayar Toll unit to Singapore-based Cube Highways at an enterprise of Rs 530 crore.
Sun TV Network
- Stock rose as much as 9.1 percent to Rs 470.75.
- Fresh longs seen with high open interest of 31 percent.
- Trading volume was seven times its 20-day average.
Sterlite Tech
- Stock rose as much as 4.5 percent to Rs 129.90.
- Company’s arm acquired 12.8 percent stake in Israel’s ASOCS.
- The target company belongs to the industry of virtualized radio access network.
CDSL
- Stock rose as much as 7.9 percent to Rs 270.70.
- Shares at a 16-month high.
Tata Motors Swings After Reporting December JLR Sales
Shares of Tata Motors fluctuated between gains and losses to trade little changed at 191.55.
The company sold 52,814 Jaguar Land Rover units last month, a gain of 1.3 percent from December 2018, according to its statement on the exchanges.
Market Check: Sensex, Nifty Erase Gains
Indian stocks erased all the gains clocked in the morning trade.
The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 41,448.81 and 12,215 respectively. The broader markets represented by the NSE Nifty 500 Index fell 0.08 percent.
Edelweiss Financial Services Drops The Most In Over Three Months
Shares of Edelweiss Financial Services fell as much as 10 percent, the most since Oct. 3, 2019, to Rs 105.45.
That came after the Enforcement Directorate summoned the company’s Chairman and CEO Rashesh Shah, in connection with a Rs 2,000-crore forex scam, Business Today reported without mentioning the source of information.
Stocks Moving On Heavy Volumes
MRPL
- Stock rose as much as 13.4 percent to Rs 49.20.
- Trading volume was more than 20 times its 20-day average.
Elgi Equipments
- Stock rose as much as 2.4 percent to Rs 271.55.
- Trading volume was more than six times its 20-day average.
Triveni Turbine
- Stock fell as much as 2.1 percent to Rs 94.05.
- Trading volume was more than 15 times its 20-day average.
Yes Bank Drops The Most In A Month
Shares of Yes Bank fell as much as 7.4 percent, the most since Dec. 11, 2019, to Rs 43.
The Mumbai-based lender's Independent Director and Audit Committee Chairman Uttam Prakash Agarwal resigned today with immediate effect. (Click here to read more)
Besides, about 11.8 lakh shares of the company changed hands in a large trade at around 12:55 p.m., Bloomberg data showed. Buyers and sellers were not known immediately.
Passenger Sales Fall 1.2% In December: SIAM
Key sales highlights (December, YoY)
- Domestic car sales fell 8.4 percent to 1,42,126 units.
- Domestic passenger vehicle sales fell 1.2 percent to 2,35,786 units.
- Truck and bus sales fell 12.3 percent to 66,622 units.
- Two-wheeler sales fell 16.6 percent to 10,50,038 units.
Source: SIAM
Suzlon Energy Falls For Third Day, Shares Drop 9%
Shares of Suzlon Energy extended declines for the third consecutive trading session. The stock fell as much as 8.8 percent to Rs 2.60.
The stock declined 52 percent in the past 12 months, compared to a 15 percent rally in the Sensex.
Market Check: Sensex, Nifty Off Day’s High
Indian stocks pared some of its gains to trade off day’s high.
The S&P BSE Sensex rose 0.43 percent to 41,629 and the NSE Nifty 50 rose 0.36 percent to 12,260. The broader markets represented by the NSE Nifty 500 Index rose 0.4 percent.
Chennai Petroleum Surges The Most In Over Two Months
Shares of Chennai Petroleum Corporation extended gains for the second consecutive trading session. The stock rose as much as 11.8 percent, the most since July 12, 2017, to Rs 127.
Trading volume was more than nine times its 20-day average, Bloomberg data showed. The stock traded at 38 times its estimated earnings per share for the coming year.
Rain Industries Rallies For Second Day, Shares Surge 17%
Shares of Rain Industries extended gains for the second consecutive trading session.
The stock rose as much as 17.4 percent, the most since Sept. 9. 2019, to Rs 125, the highest since May 28, 2019.
Trading volume was almost 18 times its 20-day average, Bloomberg data showed. Of the shares traded, 48 percent were at the ask price and 39 percent were at the bid.
Large Trade Alert: Yes Bank
About 11.8 lakh shares of Yes Bank changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Supreme Court Stays NCLAT Judgment On Mistry’s Reinstatement
Tata Group Stocks Gain
Market Check: Sensex Surges Nearly 300 Points; Nifty Hits Record High
India’s NSE Nifty 50 Index extended opening gains to hit an all-time high.
The 50-stock index rose as much as 0.66 percent to 12,296.25. The benchmark index—S&P BSE Sensex rose as much as 0.66 percent to 41,726.33. The broader markets represented by the NSE Nifty 500 Index rose 0.68 percent.
Jindal Stainless Hisar Extends Gain For Fourth Trading Session
Shares of Jindal Stainless Hisar extended gains for the fourth consecutive trading session. The stock rose as much as 5.5 percent to Rs 882.20, the highest since May 31, 2019.
The scrip advanced 12 times in 13 trading sessions. Trading volume was eight times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.
Sterlite Technologies Extends Gain, Shares Rise Nearly 5%
Shares of Sterlite Technologies extended gains for the second consecutive trading session. The stock rose as much as 4.5 percent to Rs 129.90.
The company’s arm acquired 12.8 percent stake in Israel’s ASOCS. The target company belongs to the industry of virtualized radio access network.
The stock declined 0.5 percent in the past five days and advanced 11 percent in the past 30 days, Bloomberg data showed.
F&O Check: Nifty 12,300 Call Option Premium Gains 33%
Nifty’s 12,300 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract, which is set to expire on Jan. 16, rose 33.40 percent to Rs 64.50. Over 6.78 lakh shares were added to the open interest which stood at over 16.15 lakh shares.
GMR Infra Gains After Forming Joint Venture
Shares of GMR Infra rose as much as 2.1 percent to Rs 24.60.
The company’s unit arm has formed a joint venture with Hong Kong’s ESR Cayman to develop a 66-acre logistics and industrial park at the Hyderabad airport city. In the joint venture, GMR Group will have 30 percent equity interest while the balance 70 percent will be held by ESR Cayman.
The Relative Strength Index was above 70, indicating that the stock may be overbought, according to Bloomberg data.
HDFC Swings On Stake Acquisition
Shares of Housing Development Finance Corporation fluctuated between ains and losses to trade 0.1 percent lower at 2,454.
The mortgage lender has completed the acquisition of majority stake in Apollo Munich Health Insurance for Rs 1,495.81 crore. HDFC bought 50.80 percent stake of Apollo Hospitals Group in Apollo Munich for Rs 1,485.14 crore and 0.36 percent shareholding of employees for Rs 10.67 crore, PTI reported quoting company’s exchange filing.
The stock traded at 31 times its estimated earnings per share for the coming year, according to Bloomberg data.
GTPL Hathway Surges The Most In Nearly Three Months After Q3 Results Announcement
Shares of GTPL Hathway extended gains for the fourth consecutive trading session. The stock rose as much as 10.8 percent, the most since Oct. 14, 2019, to Rs 90 after the company announced its December quarter results.
Key earnings highlights (Q3, YoY)
- Revenue rose 2.1 times to Rs 674 crore.
- Revenue (Ex EPC) rose 41 percent to Rs 449.9 crore.
- Net profit surged 77.4 percent to Rs 33 crore.
- Ebitda up 56 percent to Rs 121.7 crore.
- Margin stood at 18.1 percent versus 24.8 percent.
Infosys Top Performer On Sensex, Nifty Ahead Of Q3 Results
Shares of Infosys rose as much as 1.8 percent to Rs 740.90. The stock was the best performer on Sensex and Nifty.
Key Earnings Highlights (Q3, QoQ)
- $ revenue seen 1.4 percent higher at $3,254 million.
- Revenue seen 2.4 percent higher at Rs 23,168 crore.
- EBIT seen 4.9 percent higher at Rs 5,154 crore.
- EBIT margin seen at 22.2 percent versus 21.7 percent.
- Net profit seen 3.9 percent higher at Rs 4,194 crore.
Opening Bell: Sensex, Nifty Open Higher
Indian stocks edge higher, extending gains for the second consecutive trading session.
The S&P BSE Sensex rose 0.4 percent to 41,622.61 and the NSE Nifty 50 rose 0.38 percent to 12,262.70. The broader markets represented by the NSE Nifty 500 Index rose 0.37 percent.
The market breadth was tilted in favour of buyers. About 1,037 stocks advanced and 447 shares declined on National Stock Exchange.
All the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Realty Index’s 0.8 percent gain.
Your Complete F&O Trade Setup
Index Futures
- Nifty January futures closed at 12,269.75, premium of 53.85 points versus 38.2 points.
- Nifty January futures open interest up 10 percent, adds 11.6 lakh shares in open interest.
- Nifty Bank January futures closed at 32,152.65, premium of 60.25 points versus 70.45 points.
- Nifty Bank January futures open interest down 6 percent, sheds 94,000 shares in open interest.
Options
- Nifty PCR at 1.58 versus 1.24 (across all series)
Nifty Weekly Expiry: Jan. 16
- Max open interest on call side at 12,200 (10.2 lakh shares).
- Max open interest on put side at 12,100 (15.7 lakh shares).
- Open interest addition seen at 12,100P (+13.7 lakh shares), 12,200P (+12 lakh shares).
Nifty Monthly Expiry: Jan. 30
- Max open interest on call side at 12,500 (25 lakh shares).
- Max open interest on put side at 12,000 (44.4 lakh shares).
BQ Heads-Up: How Indian ADRs Fared Overnight
BQ Heads-Up: Who's Meeting Whom
- Tata Steel to meet Macquarie, B&K Securities and Morgan Stanley from Jan. 10-15.
- Mahindra & Mahindra to meet MFS Investment Management on Jan. 10.
Trading Tweaks: 3i Infotech, AksharChem, Den Networks
- Capital Trust to move into ASM Framework on Jan. 10.
- 3i Infotech, FCS Software Solutions to move into short term ASM Framework.
- AksharChem, Den Networks, MSP Steel & Power, Gayatri Projects to move out of short term ASM Framework.
- Kakatiya Cement Sugar & Industries price band revised to 10 percent
- Yes Bank board meeting on fundraising.
Default Disclosures: Mercator, Uttam Galva Steels
- Uttam Galva Steels default on loans from financial institutions and banks stand at Rs 397.26 crore as on Dec. 31. Total financial indebtedness at Rs 971.96 crore.
- Mercator default on loans from financial institutions and banks stand at Rs 904.8 crore as on Dec. 31. Total financial indebtedness at Rs 969 crore.
Offerings: Computer Age Management Files DRHP For IPO
Computer Age Management seeks SEBI approval for IPO. Issue will have offer for sale of up to 1.22 crore shares.
Money Market Update: Rupee Swings In Open
The Indian rupee fluctuated between gains and losses against the U.S. dollar in the opening trade. The home currency traded little changed at 71.24 against the greenback.
Q3 Earnings Corner: GTPL Hathway, Infosys, Steel Strips Wheels
Nifty Earnings To Watch
Infosys (Q3 Estimates, QoQ)
- $ revenue seen 1.4 percent higher at $3,254 million.
- Revenue seen 2.4 percent higher at Rs 23,168 crore.
- EBIT seen 4.9 percent higher at Rs 5,154 crore.
- EBIT margin seen at 22.2 percent versus 21.7 percent.
- Net profit seen 3.9 percent higher at Rs 4,194 crore.
Other Earnings To Watch
- Steel Strips Wheels
Earnings Reaction To Watch
GTPL Hathway (Q3, YoY)
- Revenue rose 2.1 times to Rs 674 crore.
- Revenue (Ex EPC) rose 41 percent to Rs 449.9 crore.
- Net profit surged 77.4 percent to Rs 33 crore.
- Ebitda up 56 percent to Rs 121.7 crore.
- Margin stood at 18.1 percent versus 24.8 percent.
Stocks To Watch: Biocon, Delta Corp, GMR infra, HDFC
- Housing Development Finance Corporation has completed the acquisition of majority stake in Apollo Munich Health Insurance for Rs 1,495.81 crore. HDFC bought 50.80 percent stake of Apollo Hospitals Group in Apollo Munich for Rs 1,485.14 crore and 0.36 percent shareholding of employees for Rs 10.67 crore.
- Sterlite Tech’s arm acquired 12.8 percent stake in Israel’s ASOCS. The target company belongs to the industry of virtualized radio access network.
- GMR Infra’s arm has formed a joint venture with Hong Kong’s ESR Cayman to develop a 66-acre logistics and industrial park at the Hyderabad airport city. In the joint venture, GMR Group will have 30 percent equity interest while the balance 70 percent will be held by ESR Cayman.
- Bharti Airtel’s panel to meet on Jan. 14 to consider QIP issue price.
- Delta Corp’s arm has received a license to operate a casino in Nepal. The company signed a memorandum of understanding for leasing space at Marriott Hotel in Kathmandu. The operations of casino as expected to commence soon.
- KNR Constructions will sell Walayar toll unit to Cube Highways at an enterprise of Rs 529.27 crore.
- Goa Carbon said that operations of its Bilaspur unit have resumed.
- Future Supply Chain Solutions appointed Hiroyuki Tanaka as an additional director.
- TCS expanded partnership with Norway’s Vipps for digital solutions.
- Biocon, Biocon Biologics and True North Fund executed a share subscription agreement and a shareholder agreement. On Jan. 6, the company stated in its press release that True North Fund would acquire 2.44 percent stake in Biocon Biologics for Rs 536.25 crore.
- Oriental Bank of Commerce reduced Marginal Cost of Funds based Lending Rate across various tenors with effect from Jan. 10. One-month MCLR at 7.6 percent and One-year MCLR at 8.15 percent.
- BSE has received a certificate of registration from IRDAI to commence insurance broking business. Exchange plans to launch insurance business by early February.
- South Indian Bank will consider raising funds via bonds on Jan. 16.
Global Cues: U.S. Stocks End At Record Highs
- U.S. stocks rose to fresh records as investor appetite for risk returned after America and Iran stepped back from the brink of war.
- Oil headed for its first weekly loss since November.
- Gold dropped for a second day as the U.S. and Iran stepped back from a deeper military conflict, blunting the appeal of haven assets.
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Key Events To Watch
- The government will release factory output data for November
- SIAM will announce industrywide sales data for December
Key Supreme Court events today:
- Supreme Court will hear Tata Sons appeal against a tribunal order reinstating Cyrus Mistry.
- Citizenship law case hearing.
- Verdict on pleas challenging curbs in Kashmir.
SGX Nifty Suggests Stock Losses; Asian Stocks Edge Higher
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.1 percent to 12,262.50 as of 8:30 a.m.
Stocks in Asia rose modestly as investors monitor an easing of geopolitical tension and await the latest reading on the U.S. labour market. Shares in Japan, Hong Kong, South Korea and Australia nudged up along with U.S. equity futures.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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