Sensex, Nifty Log Gains Aided By Auto, Power Stocks

India's stock benchmarks advanced, aided by gains in auto, power, utility and realty stocks. The NSE Nifty 50 closed above 18,300 for the first time in three months.

This is the sixth session out of the previous seven sessions in which the Sensex and Nifty have risen.

The Sensex rose 0.14% to 61,308.91. The Nifty advanced by 0.29% to 18,308.10.

Hero MotoCorp Ltd. had the largest increase, rising 5.1%. Today, 34 of 50 shares rose, while 16 fell.

The S&P BSE MidCap almost mirrored its larger peers while S&P BSE SmallCap outperformed Sensex and Nifty, rising 0.61%. Sixteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Auto adding nearly 2%.

The market breadth was skewed in the favour of bulls. About 2,297 stocks advanced, 1,305 declined and 137 remained unchanged.

"Markets are currently witnessing time-wise correction and likely to resume the trend soon. Meanwhile, participants should focus more on risk management citing a rise in volatility due to the earnings", Ajit Mishra, VP - Research, Religare Broking Ltd. wrote in a note and reiterated preference for IT, metal, realty and pharma pack while pegging the banking sector to see further consolidation.

• Publishing disposal status of investors’ grievances received in SEBI Complaints Redress System monthly.

• Amendments regarding Investor Protection Fund, providing an electronic interface for processing investor’s queries, complaints etc.

• Examining the possibility of introducing alternate dispute resolution mechanism in various agreements between the regulated entities and their clients.

Source: SEBI press release

Shares of Tata Motors Ltd. rose as much as 3.33%, the biggest intraday gain in two weeks, to Rs 526.9 apiece amid reports that the company planned to ramp up the production of electric vehicles.

• The company is expected to manufacture 50,000 EVs in FY2023 and has sounded out vendors.

• The company intends to raise production to 1.25-1.5 lakh units in the following two fiscals, according to a report by The Economic Times, quoting people aware of the matter.

• EV business could generate Rs 5,000 crore for Tata Motors in FY23 if it achieves the target, according to the report.

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

Source: News Reports, Bloomberg

• Whirlpool India raised to 'hold' from 'sell' at Investec; price target set at Rs 2,020

Source: Bloomberg

• India Oct. 1, 2021-Jan. 15, 2022 sugar output rises 6% YoY to 15.14 million tonnes, according to Indian Sugar Mills Association

• Output from top grower Uttar Pradesh fell while production in No. 2 grower Maharashtra rose.

Source: ISMA

Shares of KEC International Ltd. rose nearly 2% in intraday trade to Rs 518.65 apiece after the company secured new orders worth Rs 1,112 crore.

• These orders came across transmission and distribution business, civil business and cables business.

• The order inflows for the financial year have risen above Rs 14,000 crore.

• Of the 32 analysts tracking the company, 24 maintained 'buy', seven maintained 'hold' and one maintained 'sell' recommendations. The overall consenus price of analysts tracked by Bloomberg implied an upside of 2.3%.

• Trading volume on the stock was over two times the 30-day average volume, at this time of the day.

Source: Bloomberg, Exchange Filing.

Shares of Bhansali Engineering Polymers Ltd. fell over 7.2%, the steepest intraday decline in over five months, to Rs 165.65 apiece, after the company reported sequential decline in net profit and revenue in December quarter

• Consolidated net profit declined 39% QoQ while revenue slipped 10% in Q3.

Q3 Results (Consolidated, QoQ)

• Net profit down 39% at Rs 75.71 crore vs Rs 123.66 crore

• Revenue down 9% at Rs 341.52 crore vs Rs 374.84 crore

• Total costs at Rs 245.35 crore vs Rs 213.78 crore

• Other income at Rs 6.20 crore vs Rs 3.46 crore

• The company also approved second interim dividend of Rs 1 per equity share for FY2021-22.

Share price crossed below 50-day and 200-day simple moving average, indicating potential downward price momentum.

Trading volume was over five times the 30-day average volume, at this time in the day.

Source: Exchange Filing

India's stock benchmarks rose, aided by gains in auto, power, realty and utility stocks.

The S&P BSE Sensex rose 0.10% to 61,282.68. The NSE Nifty 50 index advanced by similar magnitude to 18,290.85. The 50-stock gauge reclaimed 18,300 for the first time in over ten weeks in intraday trade.

The broader indices outperformed their larger peers with S&P BS MidCap rising 0.25% and S&P BSE SmallCap adding 0.75%. Fourteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Auto, Utility and Power indices gaining over 1.7%.

The market breadth was skewed in the favour of bulls. About 2,292 stocks advanced, 1,226 declined and 131 remained unchanged.

Ajmera Realty & Infra India Ltd.'s shares rose 5% after the company launched residential project at Wadala in Mumbai.

• The estimated total sales value of the project is Rs 1,500 crore.

• The funding for the project will come from a mix of internal accruals, construction finance loans from HDFC Ltd. and sales advances.

• The project will comprise 540 residential flats and 18 retail shops.

Source: Exchange Filing

Shares of Capacit'e Infraprojects Ltd. rose nearly 4%, the biggest intraday gain in a week, to Rs 176 apiece after the company announced that it secured order worth Rs 231.5 crore (excluding GST) from Raymond Ltd. (realty division).

• The order pertained to civil core and shell works for premium project at Raymond Ltd., Thane.

• All the eight analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 44.4%.

Source: Bloomberg, Exchange Filing

India’s benchmark government bonds dropped to a two-year low as higher U.S. yields and crude oil prices hurt market sentiment.

• 10-year yields rose as much as 6bps to 6.64%, highest since Jan. 22, 2020; yield on 6.54% 2032 bond climbed 5bps to 6.61%

• USD/INR rose 0.2% to 74.2962

Source: Bloomberg

Most yields along the India sovereign yield curve rose, with 5-year bonds moving the most in Monday morning trading.

• The 2-year yield remained unchanged at 4.661%

• The 10-year yield rose 5.3bps to 6.635%

• The 14-year yield rose 5.4bps to 7.08%

• The 2-year-10-year yield spread was 197.4bps, vs previous close 192.1bps

• The NSE Nifty 50 Index rose 0.3%

Source: Bloomberg

Shares of Metro Brands Ltd. hit 20% upper circuit after the company reported its sequential growth in net profit and revenue in Q3, on Saturday.

December Quarter (Consolidated, QoQ)

• Net profit up 83.16% QoQ to Rs 100.85 crore

• Revenue up 49% QoQ to Rs 495.78 crore

• Total costs at Rs 362.59 crore vs Rs 273.70 crore

• Other income at Rs 12.01 crore vs Rs 17.37 crore

The company said that Q3 results were the best ever in its history, with revenue, Ebitda and net profit logging highest-ever numbers.

The relative strength index on the stock is at 76, suggesting it may be overbought.

Source: Exchange Filing, Bloomberg

Shares of Maruti Suzuki India Ltd. rose over 3.5%, the biggest intraday gain in a week, to Rs 8,368.9 apiece, after the company announced price increase across models, on Saturday.

• The move is intended to offset the adverse impact due to input costs.

• The weighted average price increase in ex-showroom prices (Delhi) across models is 1.7%.

• The new prices came into effect on Jan. 15.

• Of the 52 analysts tracking the company, 34 maintained 'buy', seven maintained 'hold' and 11 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 3%.

• Trading volume on the stock was 2.5 times the 30-day average volume, for this time of the day.

• The relative strength index on the stock was 74, suggesting it may be overbought

Source: Bloomberg, Exchange Filing

Shares of Hero MotoCorp Ltd. rose nearly 6%, the biggest intraday gain in nearly a year since Jan. 22, 2021, to Rs 2,722 apiece.

• The company approved Rs 420 crore additional investment in Ather Energy, as it intensified its EV push.

• Hero MotoCorp's shareholding will rise from the current 34.8% in Ather, after this investment.

• The stock was the top gainer in NSE Nifty Auto index.

• Of the 49 analysts tracking the company, 31 maintained 'buy', 14 maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 15.2%.

• The relative strength index on the stock was 74, suggesting it may be overbought.

• Trading volume on the stock was 13 times the 30-day average volume, for this time of the day.

Source: Exchange Filing, Bloomberg

India's stock benchmarks opened higher, aided by gains in energy, auto and oil and gas stocks were offset by losses in consumer durables stocks.

The S&P BSE Sensex rose 0.17% to 61,329.57. The NSE Nifty 50 advanced by similar magnitude to 18,301.85. Hero MotoCorp Ltd. had the largest increase, rising 2.6%. In early trading, 23 of 50 shares rose, while 26 fell.

The S&P BSE MidCap almost mirrored its larger peers while S&P BSE SmallCap outperformed Sensex and Nifty, adding over 0.5%. Twelve of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Auto rising over 1%.

The market breadth was skewed in the favour of bulls. About 2,050 stocks advanced, 891 declined and 117 remained unchanged.

• VA Tech Wabag Ltd. bagged an order worth $100 million towards engineering and procurement activities related to desalination project in city of Dubai in UAE.

• The order was secured from Green EPC, a subsidiary of Ultico FZC, the water technology firm said in an exchange filing

Source: Exchange Filing

Indian government bonds may slip further after a weak auction on Friday. Higher U.S. yields and crude oil prices could also hurt sentiment.

• 10-year yields rose 2bps to 6.58% on Friday

• USD/INR rose 0.4% to 74.1537 on Friday

• Global funds sold net Rs 1,600 crore of India stocks Friday: NSE.

• They bought Rs 239 crore of sovereign bonds under limits available to foreign investors, and added Rs 37 crore of corporate debt.

• State-run banks sold Rs 145 crore of sovereign bonds on Jan. 14: CCIL data. Foreign banks bought Rs 1,780 crore of bonds.

Source: Bloomberg

• Glenmark Pharmaceuticals has received tentative nod by U.S. FDA for an injection given to prepare patients to test for coronary artery disease.

• Regadenoson injection, 0.4 mg/5 mL, single-dose pre-filled syringe is a generic version of Lexiscan injection, which had an annual sales of $659.9 million, according to IQVIA.

Source: Exchange filing

• RattanIndia Enterprises Ltd.'s subsidiary Cocoblu Retail Ltd. entered into an agreement with Amazon Seller Services Pvt. Ltd. to be an online seller, the company said in an exchange filing.

• Cocoblu is ready to commence operations on Amazon India marketplace, the company added.

Source: Exchange filing

DCB Bank has approved the appointment Rupa Devi Singh as Non-Executive (Part-Time) Chairman. The lenders awaits the approval from regulatory authorities and shareholders of the bank before the appointment becomes effective.

Source: Exchange Filing

Tata Motors Ltd. plans to manufacture 50,000 EVs in FY2023 and has sounded out vendors, the Economic Times reported, quoting people aware of the matter.

• The company intends to raise production to 1.25-1.5 lakh units in the following two fiscals, the report said.

• EV business could generate Rs 5,000 crore for Tata Motors in FY23 if it achieves the target, according to the report.

Source: Bloomberg

• NTPC: Batlivala & Karani Securities reinstated coverage on the stock with a 'buy'.

• HCL Technologies: Upgraded to 'buy' from 'hold' by IDBI Capital Market; price target set at Rs 1,545 apiece.

• HCL Technologies: Upgraded to 'add' from 'reduce' by Spark Capital Advisors; price target set at Rs 1,410 apiece.

Source: Bloomberg

Unilever Plc has held talks with banks about additional financing for a potential sweetened offer for GlaxoSmithKline's consumer products division, Bloomberg reported citing people familiar with the matter. That will bring the their domestic units in focus as Indian markets reopen on Monday.

• GSK had rejected an earlier offer from Unilever for its consumer healthcare unit in 2021 that valued the business at $68 billion.

• In Focus: Hindustan Unilever, GlaxoSmithKline Pharmaceuticals.

Source: Bloomberg