Sensex, Nifty Close At Another Record High Led By Tata Motors, IT Stocks
Catch all live updates on share prices, index moves, corporate announcements and more from Indian stock markets today.
KEY HIGHLIGHTS
Closing Bell: Another Record Closing For India Stocks
India stocks climbed to new peaks as sentiment was boosted by a positive start to the quarterly earnings season and the commencement of vaccinations in the nation this week.
The S&P BSE Sensex rose 1% to 49,269.32, while the NSE Nifty 50 Index advanced 0.96%. Both gauges, which closed at record highs, were boosted by technology companies after Tata Consultancy Services Ltd. posted earnings that beat expectations.
- Seven of 12 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of IT companies
- Infosys Ltd. contributed the most to the index gain, increasing 4.9%. Tata Motors Ltd. had the largest increase, rising 11.4%.; Tata Steel Ltd. was the biggest drag and slipped 2.5%
- Today, 31 of 50 shares rose, while 17 fell.
- The benchmark 10-year bond fell and the yield rose 4.6 basis points to 5.922 percent
India's stocks have benefited from foreign investors piling in amid signs of recovery in the economy, even as it heads for its worst annual contraction since the 1950s.
Watch the highlights from today's trading action.
Tata Motors Jumps The Most Since April
Tata Motors Ltd. rose 10%, more than any full-day gain since April of last year. Trading in the company's call options was double the average. Trading volume was double the average for this time of day.
- Trading volume was 109.2 million shares, double the 20-day average of 51.5 million shares for this time of day.
- Trading in the company's call options totalled 35,156 contracts, compared with the average of 15,989 over the past 20 days. Trading in the company's put options totalled 12,514 contracts, compared with the average of 8,214 over the same period.
- One-month implied volatility was 60%.
- The relative strength index on the stock was above 70, indicating it may be overbought.
- Analysts have 18 buy, six hold, and nine sell recommendations on the stock.
- The price target of Rs 162 represents a 24% decrease from the last price
Tata Motors Leads Nifty Auto Index Higher
Vehicle registration climbed 11% on-year last month; passenger vehicle up 24% y/y, Federation of Automobile Dealers Associations says in an emailed statement
“We are positive on Maruti, Tata Motors, Bajaj Auto and Subros in the auto and auto ancillary sector. These companies will benefit from improving demand trends as well as improving prospects in overseas markets,” HDFC Securities Ltd. says in an earnings preview
Kaveri Seed Up 5.2%, Most In 10 Weeks
Kaveri Seed Co. rose 5.2%, more than any full-day gain since Nov. 3. Trading volume was quadruple the average for this time of day.
- Trading volume was 1.34 million shares, quadruple the 20-day average of 351,471 shares for this time of day.
- One-month implied volatility was 133%.
- The relative strength index on the stock was above 70, indicating it may be overbought.
- Analysts have nine buy, two hold, and no sell recommendations on the stock.
- The price target of Rs 748 represents a 33% increase from the last price.
S&P BSE Realty Index Gains Six Times In Seven Trading Sessions This Year
Venky's Shares Under Selling Pressure
Shares of the poultry company fell as much as 5% on the rising number of states reporting bird flu outbreaks. The stock is down for a fifth time in six sessions.
The number of Indian states reporting bird flu outbreaks has increased to seven after Haryana and Gujarat confirmed positive cases among poultry and wild birds, according to a government statement.
The disease has also been found in Kerala, Rajasthan, Madhya Pradesh, Himachal Pradesh and Uttar Pradesh, the Ministry of Fisheries, Animal Husbandry & Dairying said in a statement late on Sunday.
Meanwhile, the Press Trust of India reported on Monday that bird flu cases were confirmed in Maharashtra and Delhi.
MARKET UPDATE AT NOON
- Equity benchmarks hold steady gains their all-time highs.
- Nifty up 0.5% at 14,425
- Sensex up 0.7% at 49,159
- Nifty Bank down 0.3% at 31,992
- Nifty Midcap index down 0.9%
- Nifty Smallcap index down 0.2%
- India Volatility Index up 8.5% to 22.38
- Nifty IT index remains the top sectoral gainer; up 2.5%
- Nifty Realty and Nifty FMCG index gain 1% each
- Nifty Metal index is the top sectoral loser, down nearly 2%
Godrej Consumer Up Most In About 7 Months
Godrej Consumer Products Ltd. rose 4%, more than any full-day gain since June 16. Trading in the company's call options was triple the average. Trading volume was quadruple the average for this time of day.
- Trading volume was 2.77 million shares, quadruple the 20-day average of 628,719 shares for this time of day.
- Trading in the company's call options totalled 7,356 contracts, compared with the average of 2,389 over the past 20 days. Trading in the company's put options totalled 420 contracts, compared with the average of 294 over the same period.
- Analysts have 26 buy, 12 hold, and one sell recommendations on the stock.
- The price target of Rs 785 represents a 0.5% increase from the last price
Narayana Hrudayalaya Up Most In Almost 2 Months
Narayana Hrudayalaya Ltd. rose 4.3%, more than any full-day gain since Nov. 12. It was the best performer among its peers.
- Trading volume was 97,273 shares, 54% above the 20-day average of 63,176 shares for this time of day.
- The relative strength index on the stock was above 70, indicating it may be overbought.
- Analysts have 11 buy, no hold, and one sell recommendations on the stock, according to Bloomberg data.
- The price target of Rs 411 represents a 13% decrease from the last price
Infosys Shares Up Most In About Six Months
Infosys Ltd. rose 4.7%, more than any full-day gain since July 16. Trading volume was triple the average for this time of day.
India technology stocks may move after sector’s bellwether Tata Consultancy Services beat expectations for third-quarter earnings and forecast a return to double-digit growth in FY22.
Infosys will announce its third-quarter results on Jan. 3.
Q3 Preview By Anurag Rana Of Bloomberg Intelligence:
Infosys’ Q3FY21 results may highlight a steady improvement in bank IT spending, which could potentially lead to management lifting full-year sales growth guidance, we believe. The company’s retail and energy segments may remain pressured. Increased spending on emerging technologies such as cloud, security and analytics, could be key drivers for new contract bookings, as business conditions have started to normalize, and enterprises are seeking modernize their IT infrastructure.Lower sales and marketing expenses, coupled with muted employee attrition -- potentially below 10%, could aid operating margin by 100-200 bps. We expect the margin benefit of lower operating expenses to extend for at least two more quarters, before reversing if travel picks up again.
The Big Interview
Colgate India Shares Up Most In 11 Weeks
Colgate-Palmolive India Ltd. rose 3.7%, more than any full-day gain since Oct. 27. Trading in the company's call options was triple the average. Trading volume was six times the average for this time of day.
- The stock was the best performer among its peers.
- Trading volume was 730,433 shares, six times the 20-day average of 120,995 shares for this time of day.
- Analysts have 19 buy, 12 hold, and eight sell recommendations on the stock.
- Trading in the company's call options totalled 2,571 contracts, compared with the average of 790 over the past 20 days. Trading in the company's put options totalled 146 contracts, compared with the average of 201 over the same period.
India Bond Yield Curve May Bear Flatten on RBI Measures: Citi
The Reserve Bank of India’s move toward normalization of surplus liquidity in the banking system has started earlier than anticipated and may lead to short-term rates surging, while the 10-year yield is expected to stay in a range, Citigroup analysts including Samiran Chakraborty wrote in a note.
The RBI will withdraw Rs 2 trillion ($27.3 billion) via a 14-day reverse repo auction on Jan. 15, it said in a statement on Friday. “It has been decided to restore normal liquidity management in a phased manner,” it said
Bond yield curve is likely to bear-flatten with 10y bond yield likely to stay in 5.75-6% range, according to the Citi note
The risk to yields is skewed to the upside especially if the RBI signals intention to reduce the quantum of liquidity, rather than just normalization of rates and/or if CPI inflation keeps elevated.Citi note
Vedanta Resources Bonds Rise After Open Offer For Its India Unit
Vedanta Resources Ltd.’s bond rose after the miner launched an offer for its India unit, its latest attempt aimed at simplifying a corporate structure that hinders the parent from easily accessing cash at subsidiaries.
The London-based company’s 2022 dollar note gained 1.9 cents on the dollar to about 92.4 cents, the highest since March, Bloomberg-compiled prices show. Vedanta Resources and its three units plan to buy as many as 371.75 million shares of Mumbai-based Vedanta Ltd. at Rs 160 each in a $812 million deal, according to an exchange filing Saturday.
Arvind Shares Up 12%, Most In A Month
Arvind Ltd. rose 12%, more than any full-day gain since Dec. 7, as its margins improved and debt was repaid early.
Trading volume was nine times the average for this time of day. It was the best performer among its peers.
The shares are up 19% in the past 5 days and rose 29% in the past 30 days. Analysts have three buys, one hold, and no sell recommendations on the stock. The price target of 54 rupees represents a 5.2% decrease from the last price
Arvind is “ahead of the curve” on its debt repayment plans, says Nihal Jham, an analyst at Edelweiss Securites Ltd. He added that Arvind’s business is recovering and its high cash-flow generation is helping the Indian firm repay its debt.
Arvind’s business recovery, with margins ahead of pre-Covid levels, is ahead of other Indian textile makers. Its margins have improved with exports higher and costs under control.
Fertilisers & Chemicals Travancore Up 16%
The company. rose 16% with trading volume was 17 times the average for this time of day.
- The stock was the best performer among its peers.
- The Sensex rose 0.8%, while the MSCI AC Asia Pacific Index lost less than 0.1%.
- The relative strength index on the stock was above 70, indicating it may be overbought.
Key Nifty Insights
- The NSE Nifty 50 advanced 18% in the past 52 weeks. The MSCI AC Asia Pacific Index gained 20% in the same period
- NSE Nifty 50 Index is trading at a price-to-earnings ratio of 35.7 on a trailing basis and 28.6 times estimated earnings of its members for the coming year
- The index's dividend yield is 1% on a trailing 12-month basis
- NSE Nifty 50 Index's members have a total market capitalization of Rs 112 trillion.
- 30-day price volatility rose to 13.4% compared with 13% in the previous session and the average of 13.7% over the past month
TCS Jumps 3.5% After Analyst Raise Price Target
Sensex Hits 49,000-Mark For The First Time
Indian equity benchmarks rose in line with their Asian peers as traders weighed the implications of higher U.S. Treasury yields amid President-elect Joe Biden’s push for huge fiscal aid to fight the impact of the pandemic.
The S&P BSE Sensex advanced nearly 1% to 49,269, while the NSE Nifty 50 Index climbed 0.9%. Both gauges are trading at record highs.
Indian stocks have followed share increases across Asia as vaccination programs aimed at stemming the pandemic begin and the formal endorsement of a new U.S. president and the Democrats winning control of the Senate fueled prospects of more economic stimulus.
Can The Records Sustain?
Good Morning!
Indian equity benchmarks continue to scale new peaks with the S&P BSE Sensex just 1,200 points away from the 50,000-mark. The index also registered its tenth straight weekly advance, its longest stretch since 2009.
The Nifty Bank index is just around 300 points from a new record high.
Futures are indicating a positive start to the new trading week. The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.35% to 14,427 as of 7:40 a.m.
Stocks like TCS and Avenue Supermarts will be reacting to their quarterly results today, while GNA Axles is the only known non-index name that will be reporting its results today.
The focus will also be on Vedanta after the promoter launched an open offer to acquire up to 10% stake in the company.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.