Sensex Adds 650 Points; Nifty Closes Above 18,000

India's stock benchmarks closed higher, aided by gains in auto, banking, realty, capital goods and information technology stocks. The S&P BSE Sensex added 650 points while the NSE Nifty 50 closed above 18,000 mark for the first time since November 15.

The Sensex rose over 1% to 60,395.63. The NSE Nifty advanced by similar magnitude to 18,003.30.

Upl Ltd. had the largest increase, rising 4.1%. Today, 35 of 50 shares rose, while 15 fell.

Of the six sessions in 2022 so far, this is the fifth day of gains and the third time that the benchmark indices closed with over 1% gain.

The S&P BSE MidCap underperformed its larger peers with 0.7% gains while the S&P BSE SmallCap almost mirrored Sensex and Nifty. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Capital Goods rising more than 2%.

The market breadth was skewed in the favour of bulls. About 2,643 stocks advanced, 998 declined and 107 remained unchanged.

"Volatility in market persists till the announcement of first rate hike by Fed, post that it settles down and flow in equities resumes. Equities would continue with the outperformance with double-digit returns. Our year-end 2022 target for Nifty stands at 20,000, valuing it at 22x FY24E earnings. We expect Nifty to enjoy premium valuation for the next 1-2 years on the back of higher earnings CAGR (before reaching stable earnings pace of growth), as India becomes a preferred destination for global manufacturing", Mitul Shah, Head of Research at Reliance Securities wrote in a note.

JBM Auto Ltd. has announced the acquisition of 51% stake in JBM Green Energy Systems Pvt Ltd. and JBM EV Industries Pvt Ltd. through its subsidiary JBM Electric Vehicles Pvt Ltd.

• JBM Green Energy Systems and JBM EV Industries are now indirect subsidiary companies of JBM Auto Ltd.

• JBM Green Energy in engaged in manufacturing complete lithium-ion battery packs for EVs.

• JBM EV Industries manufactures key aggregates and auto systems for EVs.

• The stake acquisition is aimed at further consolidating JBM Auto's initiative of creating end-to-end E-mobility platform completely localised in India.

Source: Exchange Filing

Shares of Suryoday Small Finance Bank Ltd. rose nearly 5.5%, the biggest intraday gain in four weeks, to Rs 153.95 after the company reported 11% rise in gross advances in Q3, according to its quarterly business update.

• Gross Advances rose 11% QoQ to Rs 4,966 crore (numbers provisional)

• Disbursements up 5% QoQ to Rs 1,121 crore

• Total deposits up 1% QoQ to Rs 3,170 crore

• Collection Efficiency at 108% in December 2021 vs 108% in September 2021.

Trading volume on the stock was nearly five times the 30-day average volume, at this time of the day.

Source: Exchange Filing, Bloomberg

• Seoul Bankruptcy Court approves deal for Edison Motors-led group to acquire Ssangyong Motor.

• Consortium paid down payment of 305 billion won.

• Ssangyong Motor selected the consortium as preferred bidder in October.

Source: Bloomberg

• Axis Bank Ltd.'s share rise for the seventh straight day, on track for the longest winning streak in over 5.5 hours.

• Punjab National Bank Ltd.'s shares advance for the seventh straight day, on track for the longest winning streak in over 25 months.

• Shares of Karnataka Bank Ltd. gain for the seventh straight day, in track for the longest winning streak in 16 months.

Source: Bloomberg

Vistara, a joint venture between Tata Sons and Singapore Airlines, is reducing capacity. The company said that it observed a decline in air-travel demand due to the sudden surge in covid-19 cases and has decided to adjust capacity to demand.

Source: Vistara Statement, Bloomberg

Adani Transmission Ltd. added 411 circuit kilometers in Q3 to its operational network, the company said in an exchange filing.

• Distribution loss stood at 7.06% vs 6.64% QoQ

• Power transformation capacity rose 42% to 38,641 MVA in Q3

• Energy demand improved, aided by 18% rise in commercial segment and 12% rise in industrial segment.

Source: Exchange Filing

Foxconn Technology Group will gradually resume operations at the plant in the outskirts of Chennai, Tamil Nadu

• Manufacturing of iPhones for Apple Inc. is done at the plant.

• The factory was shut after workers protested a mass food-poisoning incident.

• A system to allow workers to voice their complaints, anonymously if needed, has been implemented

• Apple said that the plant remained on probation, but the workers will begin returning.

Source: Foxconn Statement, Bloomberg

India's stock benchmarks advanced, aided by gains in information technology, auto, banking and realty stocks.

The S&P BSE Sensex rose 0.93% to 60,300.30. The NSE Nifty 50 also advanced by similar magnitude to 17,976.65, just shy of reclaiming 18,000 mark.

The S&P BSE MidCap underperformed its larger peers with gains of 0.6% while the S&P BSE SmallCap almost mirrored the Sensex and Nifty. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Information Technology, Auto, Bankex, Realty leading the gains.

The market breadth was skewed in the favour of bulls. About 2,648 stocks advanced, 909 declined and 129 remained unchanged.

• RailTel Corporation of India Ltd. has declared an interim dividend at the rate of 17.5% of paid-up share capital (Rs 1.75 per share) for the financial year 2021-22.

• The record date for the purpose of payment of interim dividend of FY 2021-22 will be January 21

Source: Exchange Filing

Shares of KEC International rose 4.84%, the biggest intraday gain in over two months, to Rs 483.9 apiece.

• KEC International secured new orders worth Rs 1,025 crore across various businesses, according to an exchange filing post market hours on Friday.

Source: Exchange Filing, Bloomberg

• Ramco Cements cut to 'accumulate' from 'buy' at KR Choksey; price target set at Rs 1,176 apiece.

• Divi's Labs cut to 'add' from 'buy' at IIFL; price target set at Rs 4,320.

Source: Bloomberg

Shares of SJVN Ltd. rose over 7%, the biggest intraday gain in nearly three months, to Rs 32.35 apiece after the company bagged 125 Mega Watt grid connected solar power project in UP Solar Park.

• SJVN will build 75 Mega Watt grid connected solar ower project in Jalaun district and 50 Mega Watt grid connected solar power project in Kanpur Dehat district

• Trading volume on the stock was 7.6 times the 30-day average volume, at this time in the day.

Source: Exchange Filing, Bloomberg

BLOOMBERG EXCLUSIVE

• Fintech startup Pine Labs is said to seek $500 million in U.S. IPO.

• Startup could seek funds at a valuation of $5.5 billion-$7 billion.

• Company could go public in the first half of the year.

Source: People familiar with the matter

Indian bond yields are at a 2-year high after underwriters had to rescue a government offering on Friday.

Rising U.S. yields also weigh.

10-year yields rose 3bps to 6.57%, highest since January 2020; climbed 9 bps last week, most in six months.

Source: Bloomberg

Yields rose across the India sovereign yield curve in Monday morning trading.

• The 1-year yield rose 3.3bps to 4.425%

• The 10-year yield rose 2.3bps to 6.565%

• The 30-year yield rose 1.6bps to 7.243%

• The 1-year-10-year yield spread was 214bps, vs previous close 215bps

Source: Bloomberg

Shares of Alembic Pharmaceuticals rose nearly 2%, the biggest intraday gain in four sessions, to Rs 820.9 apiece.

• The company received tentative approval from U.S. FDA for Dronedarone Tablets, USP, 400 mg.

• The drug is therapeutically equivalent to Multaq Tablets, 400 mg, of Sanofi-Aventis and is used to maintain regular heart rhythm after cardioversion.

• The tablets have an estimated market size of $500 million for twelve months ending September 2021, according to IQVIA

Source: Exchange Filing

• SML Isuzu has suspended production at its plant in Shahid Bhagat Singh Nagar, Punjab citing sudden rise in Covid-19 cases and supply chain issues.

• Production suspended from January 10 to January 15.

Source: Exchange filing

Shares of Larsen & Toubro Ltd. rose after the company bagged an order in the Mumbai Ahmedabad High Speed Rail Project

• The construction arm of Larsen & Toubro Ltd. bagged an order from National High Speed Rail Corporation Ltd. L&T classified the contract as 'significant', implying that the project value was between Rs 1,000 crore to Rs 2,500 crore.

• The project pertains to design and construction of civil and building works for double line high speed railway of length 8.198 kilometer, as part of the Mumbai Ahmedabad High Speed Rail Project.4

• Of the 43 analysts tracking the company, 41 maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 15.6%.

Source: Exchange Filing, Bloomberg

Course5 Intelligence sought regulatory approval for an initial share sale of as much as Rs 600 crore ($80.9 million), according to a draft red herring prospectus.

The IPO will comprise of issue of fresh shares of as much as Rs 300 crore and an offer for sale for an equal amount by selling shareholders

• Ashwin Ramesh Mittal for up to Rs 32.5 crore

• Riddhymic Technologies for up to Rs 40 crore

• Riddhymic Technoserve for up to Rs 40 crore

• AM Family Private Trust for up to Rs 112.5 crore

• Kumar Kantilal Mehta for up to Rs 75 crore

• Axis Capital and JM Financial are the bankers for the IPO.

Source: Bloomberg

Shares of realty companies rose aided by strong q3 business updates.

Here is a quick summary of the Q3 business updates from realty firms.

Macrotech Developers

• Sales bookings grew to Rs 2,608 crore during the Q3FY22, vs Rs 1,862 crore Q3FY21, growth of +40% YoY and +30% QoQ.

• UK projects had their best quarter of sales with sales totaling £191 million (Rs 1,900 crore)

• Grosvenor Square, London: The momentum continued in the quarter and had strongest quarterly pre-sales at GSQ of £177 million (~Rs 1,770 crore). Thus, in just 2 quarters, GSQ has achieved almost £300 million of pre-sales. Backed by this strong performance, the $225 million bond could get repaid in next four months from the sales proceeds before the scheduled maturity of March 2023 and management expects that the project can fully sold out before plan target of Q4FY24.

• Lincoln Square, London: Lincoln Square continued with steady performance with pre-sales of £14 million (~Rs 140 crore) in Q3FY22 and would get sold out in next 1-2 quarters.

• The collections from customers against sales rose 44% YoY (+11% QoQ) to Rs 2,127 crore.

• The net debt (India business) fell to Rs 9,925 crore in Q3 from Vs Rs 12,477 crore in Q2.

Sobha Limited

• Achieved quarterly sales volume of 1.32 million square feet up by 17% YoY

• Average price realization during the quarter has grown by 4% QoQ and 1% YoY

• The Kerala region sales performance declined by 88% YoY, due to sustained COVID restrictions and impact of flood.

• Cash flow remains healthy during the quarter which has resulted in further net debt reduction.

• The average cost of borrowing has also come down during the quarter.

Sunteck Realty

• Firm logged a pre-sales of Rs 352 crore in Q3 FY22, up 29% QoQ with Rs 272 crore in Q2.

• Q3 Collections rose 30% QoQ to Rs 270 crore vs Rs 207 crore in Q2

• Collections efficiency for FY22 so far stands at 81%.

• Over the last 18 months, the company acquired 23 million square feet of development potential across five projects at Vasai West, Vasind, Borivali West, Kalyan (Shahad) and Pen-Khopoli. The company's estimated gross development value is approximately Rs 20,000 crore.

• The company said that it has several project launches lined up both in the premium and aspirational residential segments and expects these launches to drive sales company and market share gains.

• Mindspace Business Parks REIT has 46.7 million shares change hands in bunched trade

• Mindspace Business has 7.88% of equity traded in bunched trade.

• Details of buyers and sellers are not known immediately.

Source: Bloomberg

India's stock benchmarks opened higher, aided by gains in information technology and banking stocks, shrugging off the weakness in global markets amid rising covid-19 cases due to omicron strain.

The S&P BSE Sensex rose 0.75% to 60,190.48. The NSE Nifty 50 also advanced by similar magnitude to 17,940.60.

The broader indices almost mirrored their larger peers with the S&P BSE MidCap gaining 0.5% and S&P BSE SmallCap adding 0.85%. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Realty, S&P BSE Bankex rising over 1%.

The market breadth was skewed in the favour of bulls. About 2,329 stocks advanced, 558 declined and 141 remained unchanged.

RBL Bank Ltd. and Google have announced a strategic collaboration to enhance customer experience and expand value proposition to serve growing customer base through its digital platform, Abacus 2.0.

• The collaboration is aimed at managing customer data better, improving analytics and enabling effective cross selling within the customer base and reducing the cost of customer acquisition.

• RBL Bank will utilise Google Cloud's infrastructure for customer on-boarding.

• RBL Bank has over 4 million urban retail asset and liability customers. The bank target to grow this base to 12-14 million over next three years.

Source: Exchange Filing

Sunteck Realty Ltd. logged a pre-sales of Rs 352 crore in Q3 FY22, up 29% QoQ with Rs 272 crore in Q2, the company said in its business update for the quarter ended December.

• Q3 Collections rose 30% QoQ to Rs 270 crore vs Rs 207 crore in Q2

• Collections efficiency for FY22 so far stands at 81%.

• Over the last 18 months, the company acquired 23 million square feet of development potential across five projects at Vasai West, Vasind, Borivali West, Kalyan (Shahad) and Pen-Khopoli. The company's estimated gross development value is approximately Rs 20,000 crore.

• The company said that it has several project launches lined up both in the premium and aspirational residential segments and expects these launches to drive sales company and market share gains.

Source: Exchange Filing

Royal Dutch Shell is bidding for Sprng Energy, the Indian renewable company of Actis LLP, the Economic Times newspaper reports, citing unidentified people aware of the matter.

• Shell will compete with Macquarie and Canadian pension fund CPP Investment Board.

• The three companies were shortlisted last week after initial bids.

• Shell's $1.2 billion non-binding offer 'is believed to' be the highest.

• Macquarie declined to comment to the paper, while Actis, CPPIB and Shell did not respond to queries.

• Yes Bank Ltd., the biggest shareholder in satellite broadcast firm Dish TV India Ltd., may sell its stake to Tata Sky and Bharti Airtel Ltd, Business Standard reports citing unidentified banking sources.

• Yes Bank owns 25.6% stake in Dish TV, while the founders own 6%.

• Other institutional investors with a 45% stake in Dish TV are also keen to sell their stake.

• A final decision is expected soon.

Indian bonds may remain under pressure after underwriters had to rescue a government offering on Friday. Rising U.S. yields will also weigh.

10-year yields rose 2 basis points to 6.54% on Friday; climbed 9 bps last week, most in six months

• USD/INR fell 0.3% to 74.3062 on Friday

• Foreign funds bought Rs 496 crore of Indian stocks on Friday, provisional NSE data showed.

• They sold Rs 32 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 62 crore of corporate debt

• State-run banks bought Rs 2,530 crore of sovereign bonds on Jan. 7, CCIL data showed. Foreign banks sold Rs 4,890 crore of bonds.

Source: Bloomberg