Sensex, Nifty Log Fourth Day Of Gains Aided By RIL, Bharti Airtel, M&M

India's stock benchmarks advanced, aided by gains in energy, telecom, auto, metal, power and realty stocks. This is the fourth consecutive session the S&P BSE Sensex and NSE Nifty 50 have logged gains. Focus shifts to information technology stocks as Tata Consultancy Services Ltd., Infosys Ltd. and Wipro Ltd. are scheduled to report their December quarter earnings post market hours.

The S&P BSE Sensex rose 0.88% to 61,150.04. This is the first time the 30-stock gauge closed above 61,000 in 10 weeks. This is also the highest close for Sensex since Nov. 26, 2021. The NSE Nifty 50 also advanced by similar magnitude to 18,212.35. This is the first time the 50-stock gauge close above 18,200 in 10 weeks. This is also the highest close for Nifty since Nov. 26, 2021.

Mahindra & Mahindra Ltd. had the largest increase, rising 4.7%. Today, 37 of 50 shares rose, while 13 fell.

The broader indices almost mirrored their larger peers with S&P BSE MidCap adding over 1% and S&P BSE SmallCap gaining 0.7%. Barring S&P BSE Healthcare and S&P BSE Consumer Durables, all the other 17 sectoral indices compiled by BSE Ltd. rose, with S&P Telecom gaining over 3% and S&P BSE Power, Energy and Utilities advancing over 2%.

The market breadth was skewed in the favour of bulls. About 1,839 stocks advanced, 1,609 declined and 82 remained unchanged.

"The Nifty has maintained a breakout continuation formation but profit booking at higher levels is not ruled out due to the extended rally in recent sessions", Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. wrote in a note and added that "the 18,100 level would be the key to watch out for and above the same the uptrend texture will continue up to 18,275-18,350. On the other hand, below 18,100, the market may trigger short-term correction up to 18,050-18,000 levels".

Kolte-Patil Developers Ltd. has posted a 28% QoQ growth in sales volume in December quarter, according to its business update

• Sales Volume up 28% QoQ to 0.83 million square feet

• New area sales value up 31% QoQ to Rs 561 crore

• Realisation up 2% QoQ to Rs 6,489 per square feet

• Collections up 13% QoQ to Rs 421 crore

Shares of Kolte-Patil Developers rose over 5% in intraday trade. All the four analysts tracking the company maintained a 'buy' recommendation. The overall consensus price of analysts tracking by Bloomberg implied an upside of 33.4%.

Source: Exchange Filing, Bloomberg

Federal Bank Ltd. has approved the issuance of Unsecured Basel III Tier-II subordinate bonds in the nature of debentures, amounting up to Rs 700 crore on a private placement basis, the company said in an exchange filing.

Source: Bloomberg

• Bank of Baroda Ltd. has 1.45 million shares change hands in a bunched trade.

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

• Endurance Technologies Ltd. raised to 'buy' from 'accumulate' at Prabhudas Lilladher; price target set at Rs 1,981.

• TVS Motor Co. cut to 'accumulate' from 'buy' at Prabhudas Lilladher; price target set at Rs 736.

• Bajaj Auto Ltd. raised to 'buy' from 'accumulate' at Prabhudas Lilladher; price target set at Rs 4,057.

• Eicher Motors Ltd. raised to 'buy' from 'hold' at Prabhudas Lilladher; price target set at Rs 3,398.

Source: Bloomberg

Shares of Adani Green Energy Ltd. rose over 6.3% in intraday trade to record after reporting strong Q3 business update on Tuesday.

• Adani Green Energy reported 84% YoY growth in operational capacity in Q3.

• The company's sale of energy rose 97% YoY to 2,504 million units in Q3.

• Solar portfolio capacity utilisation factor at 21.9%, up 110bps YoY; plant availability at 100%.

• Wind portfolio capacity utilisation factor at 18.6%, up 10bps YoY; plant availability at 97%.

Over the last two sessions, Adani Green Energy shares have risen over 12%

Source: Bloomberg, Exchange Filing

• NCC Ltd. has 2.56 million shares change hands in a bunched trade.

• Details of the buyers and sellers are not immediately.

Source: Bloomberg

India's stock benchmarks advanced, aided by gains in metals, auto, banking, energy, telecom and realty stocks, amid a rebound in global equities after U.S. Federal Reserve chair Jerome Powell assured investors that the measures to tackle inflation would not derail economic growth.

The S&P BSE Sensex rose 0.77% to 61,085.09. The 30-stock gauge rose nearly 1% in intraday trade. This is the first time Sensex reclaimed 61,000 mark after nearly two months. The NSE Nifty 50 also advanced by similar magnitude to 18,190.65. The 50-stock gauge reclaimed 18,200 mark in intraday trade.

The broader indices almost mirrored their larger peers with S&P BSE MidCap and S&P BSE SmallCap gaining 0.85%. Sixteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Realty and S&P BSE Telecom gaining 2%.

The market breadth was skewed in the favour of bulls. About 1,795 stocks advanced, 1,593 stocks advanced and 85 remained unchanged.

• L&T Hydrocarbon Engineering has bagged an order from overseas clients for EPC of new facilities and integration with existing installations.

• L&T defines 'mega' orders as those worth over Rs 7,000 crore.

Source: Exchange filing

• Shares of DLF Ltd. rose nearly 4.5%, the biggest intraday gain in a month, to Rs 426.8 apiece after the company clocked sales worth Rs 1,500 crore from a newly launched luxury residential project, ONE Midtown, in New Delhi.

• Of the 21 analysts tracking the company, 16 maintained 'buy', two maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 6.8%.

Source: Exchange Filing, Bloomberg

HiedelbergCement India Ltd. has commissioned a state-of-the-art facility to substitute part of fossil fuels with alternate fuels in cement production, the company said in an exchange filing.

• The facility -- built at Damoh in Madhya Pradesh with an investment of Rs 16 crore -- will help the company achieve thermal substitute rate of 5% in the first phase.

• The facility is expected to reduce the company's carbon dioxide emissions by 42,000 tonnes per annum.

Source: Exchange Filing

• Indian bonds are lower with traders awaiting a data release that’s forecast to show consumer-price inflation accelerated in December. The rupee is trading steady.

• CPI probably rose to 5.8% YoY in December, the highest in six months, from 4.91% a month earlier, according to a Bloomberg survey of economists. The data is published at 5:30 p.m.

• India’s 10-year bond yield up 1bp to 6.58%; 5-year yield rises 1bp to 5.94%.

• USD/INR little changed at 74.

Source: Bloomberg

Easy Trip Planners has recommended the bonus issue of equity shares in the proportion of one equity share of face value Rs 2 each for one equity share of face value Rs 2 each.

Source: Exchange Filing

Most maturities along the India sovereign yield curve were little changed, while 5-year yields rose in Wednesday morning trading.

• The 2-year yield remained unchanged at 4.688%

• The 10-year yield rose 0.6bps to 6.576%

• The 14-year yield rose 1bp to 7.042%

• The 2-year-10-year yield spread was 188.8bps, vs previous close 188.2bps

• The NSE Nifty 50 Index rose 0.8%

Source: Bloomberg

Shares of Bajaj Finance Ltd. rose over 2.5%, the biggest intraday gain in five sessions, to Rs 7,869 apiece after the company said it will consider raising of funds by debt issue/issue of non-convertible debentures in its board meeting on Jan. 18

• The company will also report the financial results for the December quarter on Jan. 18.

• Of the 32 analysts tracking the company, 16 maintained 'buy', eight maintained 'hold' and eight maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 3.2%.

Source: Exchange Filing, Bloomberg

• Equity shares to be issued on a preferential basis.

• The entire exercise will be completed within a month

• Both for moratorium and equity was an one-time option. The equity conversion deadline was Jan. 11

• Have shared all the data with the DoT. Expect DoT will to certify these numbers

• In all our interactions it has been very clearly stated by the Govt. that they do not want to run the company. They want three telecom players: Vodafone Idea CEO

• Vodafone Plc and Birla Grp will continue to control the company

• There is no condition in the letter written by DoT on the issue of equity conversion requiring board seat

• The promoters continue to manage the company going forward. They have accepted the dilution in their stake.

• Can confirm there is a huge investor interest in investing in the telecom sector.

Ravinder Takkar, MD & CEO, Vodafone Idea Ltd.

Shares of Varun Beverages rose over 4% in intraday trade after Jefferies retained its 'high-conviction buy' on the stock and maintained its price target at Rs 1,215, an implied return of 40%, in a note on Tuesday.

Over the past two days, the stock has risen over 6%.

Jefferies expects the company to deliver a strong season with market share gains in south and west regions. The brokerage expects out-of-home consumption to recover after the covid-restrictions ease and believes that Varun Beverages is well-placed to benefit.

Jefferies

• Maintains high conviction 'buy' with the target price unchanged at Rs 1,215, an implied return of 40%.

• Expects the company to deliver a strong season, with market share gains in south and west regions.

• RoE is set to expand to 24% by calendar year 2023.

• Expects strong pick-up in volume growth from March.

• Expected market share gains in south region got delayed due to covid restrictions in the past two years

• Expects the market share gains in south to begin from now.

• Company is better-placed than its peers as it is better shielded against rural demand.

• Measures such as strategic sourcing, packaging interventions should continue to ease the pressure due to raw materials inflation.

• Investment Thesis: Out-of-home consumption businesses should see a sharp recovery and growth once the covid-19 disruption is behind. The company is poised to expand distribution, gain share in south and west and drive strong EPS growth.

All the 17 analysts tracking the company maintained a 'buy' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 16.7%. Trading volume on the stock was 8.5 times the 30-day average volume, at this time of the day.

Source: Exchange Filing, Bloomberg

• Shares of Tata Teleservices Maharashtra Ltd. shed 5% after the company decided to convert interest related to AGR dues of Rs 850 crore into equity.

• The government will hold approximately 9.5% stake as per company's estimates.

Source: Exchange Filing, Bloomberg

Shares of Delta Corp Ltd. rose 5.71%, the biggest intraday gain in three weeks, to Rs 299 after the company reported a net profit of Rs 70.38 crore in Q3 as compared to a loss of Rs 22.57 crore QoQ.

Q3 Numbers (Consolidated, QoQ)

• Revenue up 231% at Rs 247.22 crore vs Rs 74.72 crore

• Total costs at Rs 155.53 crore vs Rs 108.37 crore

• Other income at Rs 4.98 crore vs Rs 7.80 crore

The company approved appointment of advisors by its online gaming business arm Gaussian Networks to explore a potential IPO.

Trading volume on the stock is 7.7 times the 30-day average volume, at this time of the day.

Source: Exchange Filing, Bloomberg

India's stock benchmarks opened higher, aided by gains in metal, information technology, banking stocks, amid a rebound in global equities after Federal Reserve Chair Jerome Powell reassured investors that the central bank's measures to curb inflation would not hurt economic growth.

The S&P BSE Sensex rose 0.55% to 60,951.28. The NSE Nifty 50 also advanced by similar magnitude to 18,150.80. Hindalco Industries Ltd. had the largest increase, rising 2.3%. In early trading, 45 of 50 shares rose, while 5 fell.

The broader indices almost mirrored their larger peers with the S&P BSE MidCap rising 0.4% and S&P BSE SmallCap adding 0.55%. All the 19 sectoral indices compiled by BSE Ltd. advanced, with S&P BSE Metal and S&P BSE Realty gaining over 1.5%.

The market breadth was skewed in the favour of bulls. About 2,199 stocks advanced, 567 declined and 77 remained unchanged.

Indian bond traders are awaiting inflation numbers that are forecast to show consumer-price gains accelerated in December. The rupee is set to open higher, following gains in its Asian peers.

CPI probably rose to 5.8% YoY in December, the highest in six months, from 4.91% a month earlier, according to a Bloomberg survey of economists before the data is published at 5:30 p.m.

• India’s 10-year bond yields fell 2bps to 6.57% on Tuesday after the government announced a new 10-year bond sale.

• USD/INR fell 0.2% to 73.9125 on Tuesday

• Global Funds bought a net Rs 112 crore of India stocks on Tuesday: NSE

• They bought Rs 32 crore of sovereign bonds under limits available to foreign investors, and sold Rs 10 crore of corporate debt

• State-run banks bought Rs 37.26 crore of sovereign bonds on Jan. 11: CCIL data. Foreign banks sold Rs 859 crore of bonds.

Source: Bloomberg

• RattanIndia Enterprises has approved an investment of Rs 350 crore in its wholly owned subsidiary Cocoblu Retail Ltd., making the company e-commerce foray.

• RattanIndia Enterprises is building businesses in new age sectors such as electric motorcycles, drone solutions and fintech.

• Cocoblu will offer digital end-to-end value-chain management solutions to several brands to bring them onto leading online platforms.

• Anjal Rattan Nashier, business chairperson of RattanIndia Enterprises said that the investment of Rs 350 crore is intended to create an 'all-digital approach to selling lifestyle offerings through e-commerce platforms'.

Source: Exchange Filing

Government has no plans to convert Vodafone Idea Ltd., into a state-run firm, and it is not keen on a board seat, the Economic Times newspaper reported citing unnamed senior officials.