Sensex, Nifty Log Longest Winning Streak In Over Two Months

India's stock benchmarks advanced for the fourth consecutive session, their longest winning streak in over two months since the seven-day streak ended Oct. 18, 2021, aided by banking, metal and oil and gas stocks.

The S&P BSE Sensex rose over 0.6% to 60,223.15. This is the first time the 30-stock gauge close above 60,000 in over six weeks.

The NSE Nifty 50 advanced by similar magnitude to 17,925.25. Bajaj Finserv Ltd. had the largest increase, rising 5.0%. Today, 34 of 50 shares rose, while 16 fell.

The broader indices underperformed their larger peers with the S&P BSE MidCap adding 0.35% while the S&P BSE SmallCap was little changed. Thirteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Bankex rising nearly 2.5%.

The market breadth was skewed in the favour of bulls. About 1,828 stocks advanced, 1,556 declined and 97 remained unchanged.

Rohatgi Says

• The single judge did not appreciate the import of the order of the CCI.

• In the entire order, there is no consideration of the order of the CCI, the heavy hand by which they have come down on Amazon.

• A 200 crore penalty is not a small penalty.

• Cyient cut to 'neutral' from 'buy' at Motilal Oswal Securities; price target set at Rs 5,830.

Source: Bloomberg

• Computer Age Management Services rises for the eight day, heads for the longest winning streak since it went public on October 1, 2020.

• Affle India shares rise for the sixth day, on track for the longest wnning streak in over a year.

• Gulf Oil Lubricants India gains for the seventh day, on track for the longest winning streak in 4.5 years.

Source: Bloomberg

Shares of IDBI Bank rose 11%, the biggest intraday gain in over three weeks, to Rs 52.6 apiece. Trading volume was triple the 20-day average volume, for this time of the day.

Share price crossed above the 50-day simple moving average, indicating potential upward price momentum.

Analysts have one sell and one hold recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 15.4%.

Source: Bloomberg

Shares of NELCO Ltd. rose over 2% in intraday trade to Rs 730.75 apiece after the company bagged contract from ONGC to enhance its communication infrastructure at offshore sites.

The scope of the contract, worth over Rs 40 crore, entails supply, commission and maintenance of ONGC's captive very small aperture terminal (VSAT) based network.

Nelco will revamp the captive network of ONGC and enable voice and data communication between offshore installations and onshore locations.

Source: Exchange Filing

Delhi High Court refused to interfere with an anti-money laundering investigation by Indian government's Directorate of Enforcement against a unit of Amazon.com

• Amazon Wholesale India petitioned the court saying the proble agency was acting beyond its power.

• ED's lawyer tells court that ED won't ask for physical presence of Amazon executives as part of the investigation amid an increase in Covid-19 cases in India.

Source: Bloomberg

Mercia Asset completes sale of Farodion for an enterprise value of £100 Million.

Source: Bloomberg

The heavy engineering arm of Larsen & Toubro has won significant contracts for its various business segments in Q3. L&T classifies orders in the range between Rs 1,000 crore and Rs 2,500 as 'significant' orders.

• A hydrocabon sector customer in Middle East has awarded an order to the modification, revamp and upgrade business of L&T Heavy Engineering.

• MRU business also bagged a project for revamp of Fluid Catalytic Cracking system from hydrocarbon sector customer in Middle East

• The company also secured a project for the expansion of Barauni Refinery by India Oil Corporation.

Of the 43 analysts tracking the company, 41 maintained 'buy', one 'hold' and one 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 13.7%.

Source: Exchange Filing, Bloomberg

• Google had sought more time to respond to the competition regulator.

• Google and CCI agreed that the matter can be closed now as the Director General would complete investigation in 60 days.

• High Court directed Google India to co-operate with the investigation. Matter listed for Jan. 10

Source: Karnataka HC proceedings

India's stock benchmarks advanced, on track to extending its winning streak to four days, aided by banking stocks. Information technology stocks slipped after the tech selloff in the Wall Street.

The S&P BSE Sensex rose 0.45% to 60,122.94. This is the first time the 30-stock gauge rose above 60,000 in intraday trade in nearly seven weeks since November 18, 2021. The NSE Nifty 50 also advanced by similar magnitude to 17,885.70. Bajaj Finserv Ltd. had the largest increase, rising 4.9%. In midday trading, 33 of 50 shares rose, while 17 fell

The S&P BSE MidCap almost mirrored its larger peers while S&P BSE SmallCap underperformed, as it remained little changed. Barring S&P BSE Information Technology, Teck and Power, all the other 16 sectoral indices compiled by BSE Ltd. rose with S&P BSE Bankex and S&P BSE Finance adding 2%.

The market breadth was skewed in the favour of bulls. About 1,830 stocks advanced, 1,478 declined and 112 remained unchanged.

Shares of Macrotech Developers Ltd. rose over 3% to Rs 1,272 apiece after the company said that its UK projects had their best ever quarter of sales totaling to Rs 1,900 crore in Q3FY22.

• Macrotech Developers added that its investment in the UK will be significantly repatriated back to India in FY23.

• Company had the strongest ever quarterly sales performance at Grosvenor Square, London with a pre-sales of Rs 1,770 crore while the projects at Lincoln Square achieved a pre-sales of Rs 140 crore.

Of the 12 analysts tracking the company, 10 maintained 'buy' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 2.9%.

Shares of Bajaj Finance Ltd. rose 3.7% to Rs 7,615 apiece after the company reported 26.3% YoY growth in AUM in Q3 in its quarterly business update.

Bajaj Finance (Q3FY22)

• Assets under Management up 26.3% at Rs 1,81,300 crore vs Rs 1,43,550 crore YoY

• Customer Franchise at 55.4 million vs 46.3 million YoY

• Deposit book up 26.2% at Rs 30,000 crore vs Rs 23,777 crore YoY

• New loans booked at 7.4 million vs 6 million in Q3 FY21

• Consolidated liquidity surplus at Rs 14,300 crore

• Capital adequacy ratio at 27% as of Dec. 31, 2021

Source: Exchange Filing

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 an upside of 0.1%.

Maturities across the India sovereign yield curve were little changed in Wednesday morning trading.

• The 4-year yield rose 0.9bps to 5.72%

• The 10-year yield was little changed at 6.515%

• The 20-year yield remained unchanged at 7.02%

• The 4-year-10-year yield spread was 79.5bps, vs previous close 80.6bps

Source: Bloomberg

Shares of Thermax Ltd. rose as much as 6.38% to Rs 1,920 apiece, the biggest intraday gain since Dec. 12, 2021 after the company bagged orders of Rs 545.6 crore.

• The orders received were from an Indian power public sector company.

• The orders pertained to setting up of flue gas desulphurisation systems for their two units of 500 MW capacity each in the state of Uttar Pradesh, India.

• Of the 27 analysts tracking the company, eight maintained 'buy', seven maintained 'hold' and 12 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 24.2%.

Source: Bloomberg, Exchange Filing

Shares of AU Small Finance Bank Ltd. rose nearly 7.66%, the biggest intraday gain in seven months to Rs 1,179.85 after the company reported its Q3 business update.

Provisional Numbers

• Total Deposits grew by 13% in Q3 to Rs 44,278 crore over the preceding quarter.

• CASA ratio at 39% versus 30% in the previous quarter.

• Fund-based disbursements rose 59% QoQ to Rs 8,152 crore.

• Non-fund-based disbursements grew 48% QoQ to Rs 627 crore.

Of the 27 analysts tracking the company, 12 maintained 'buy', nine maintained 'hold' and six maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 10.9%.

Tech Mahindra Ltd. and HCL Technologies Ltd. shed over 2% to be the biggest losers in early trade.

Other IT stocks in Wipro and Infosys were also lagging Nifty, falling around 1.5%.

Shares of Linde India Ltd. rose 6%, the most in eight weeks. Trading volume was 13 times the average for this time of the day.

Shares rose to Rs 2,679 apiece, higher than any close since Oct. 11.

The stock was the best performer among peers.

India's stock benchmarks opened little changed, as losses in information technology stocks were offset by gains in banking stocks, after a tech sell off in Wall Street added to concerns over omicron strain and sapped sentiment.

The S&P BSE Sensex rose 0.1% to 59,940.64. The NSE Nifty 50 was little changed at 17,811.50.

The broader indices outperformed their larger peers with the S&P BSE MidCap adding over 0.3% and S&P BSE SmallCap rising nearly 0.2%. Barring S&P BSE Information Technology and S&P BSE Teck, all the other 17 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Finance leading the gains.

The market breadth was skewed in the favour of bulls. About 1,627 stocks advanced, 1,076 declined and 93 remained unchanged.

Bharti Airtel and Hughes Network Systems's subsidiary Hughes Communications India Pvt Ltd. announced a joint venture to provide satellite broadband services in India.

• The entity combines the Very Small Aperture Terminal (VSAT) businesses of both firms to offer networking solutions using satellite connectivity.

• The agreement, announced in May 2019, has received all statutory approvals.

Source: Exchange filing

• India is likely to extend incentives for purchases of affordable homes for another year, newspaper Mint reported citing people it didn’t identify. 

• The government will extend the additional interest deduction of Rs 1,50,000 on affordable housing loans till March 2023, the report said.

• First time home buyers are offered tax incentives for affordable houses priced as much as Rs 45 lakh.

• Advances at approximately Rs 2.28 lakh crore as of Dec. 31, 2021.

• Deposits rose 3% QoQ to Rs 2.84 lakh crore.

• CASA ratio at 42.2% as of December-end.

• Retail deposits and deposits from small business customers rose 1.6% QoQ to Rs. 1.13 lakh crore.

Source: Exchange Filing

Mumbai’s city administration may consider further curbs on movement and businesses if daily addition of new Covid-19 cases surges to 20,000, Times of India reported.

• The administration will also consider availability of hospital beds in the city instead of focusing on the positivity rate of infections, according to the report citing Iqbal Chahal, commissioner of Brihanmumbai Municipal Corporation

• Mumbai added 10,860 new cases on Tuesday.

• Macrotech Developers said that its UK projects had their best ever quarter of sales totaling to Rs 1,900 crore in Q3FY22. The company added that its investment in the UK will be significantly repatriated back to India in FY23.

• Company had the strongest ever quarterly sales performance at Grosvenor Square, London with a pre-sales of Rs 1,770 crore while the projects at Lincoln Square achieved a pre-sales of Rs 140 crore.

Source: Exchange Filing

• Jindal Steel & Power Ltd. raised to 'add' from 'hold' at ICICI Securities; price target set at Rs 433.

Source: Bloomberg

Bajaj Finance (Q3FY22)

• Assets under Management up 26.3% at Rs 1,81,300 crore vs Rs 1,43,550 crore YoY

• Customer Franchise at 55.4 million vs 46.3 million YoY

• Deposit book up 26.2% at Rs 30,000 crore vs Rs 23,777 crore YoY

• New loans booked at 7.4 million vs 6 million in Q3 FY21

• Consolidated liquidity surplus at Rs 14,300 crore

• Capital adequacy ratio at 27% as of Dec. 31, 2021

Source: Exchange Filing