Sensex, Nifty Log Longest Weekly Winning Streak In Over Three Months

India's stock benchmarks rose for the fourth consecutive week, the longest winning streak since the week ended September 24, 2021, aided by gains in energy, realty, psu banks and metal stocks.

On Friday's session, the S&P BSE Sensex and NSE Nifty 50 snapped a five-day winning streak, closing with marginal losses.

Sensex erased intraday losses to close little changed at 61,223.03. The Nifty 50 also closed flat at 18,255.75. Both the measures shed over 0.75% in intraday trade.

Asian Paints Ltd. had the largest drop, falling 2.7%. Today, 29 of 50 shares fell, while 20 rose.

The broader indices outperformed their larger peers with S&P BSE MidCap added 0.22% and S&P BSE SmallCap rising 0.5%. Eleven of the 19 sectoral indices compiled by BSE Ltd. rose with S&P BSE Capital Goods gaining nearly 1.5%.

The market breadth was skewed in the favour of bulls. About 2,060 stocks advanced, 1,346 declined and 97 remained unchanged.

"Nifty, after five days of continuous positive close, ended the day on weak note with miniscule loss at 18,256 levels", noted Siddhartha Khemka. The head - retail research at Motilal Oswal Financial Services Ltd. added "record high inflation in US is dampening the sentiments in other wise positive macro data environment. Moreover, Markets have recovered sharply by more than 10% from its recent lows of 16,400 levels in just 20 days. Valuations are no longer cheap and require strong earnings delivery for sustenance of positive momentum in the market".

Shares of Datamatics Global Services Ltd. rose 5% in intraday trade after the company entered into a long-term strategic partnership with PSI Services.

As part of the deal, Datamatics will provide customer management solutions through remote proctoring, customer support and technical support.

Source: Exchange Filing

• Shares of United Breweries rose for the ninth day, on track for the longest winning streak in 4.5 years since Sept. 2017.

• Shares of Delta Corp advanced for eighth day, on track for the longest winning streak in 5.5 years since Aug. 2016.

Source: Bloomberg

SIAM Auto Sales - December (MoM)

• Passenger cars: 112,873 units, up 12% MoM

• Passenger vehicles: 219,421 units, up 1.75% MoM

• Utility vehicles: 97,137 units, down 7.5% MoM

• Two-wheelers: 1,006,062 units, down 4.24% MoM

• Motorcycle: 726,587 units, up 3.83% MoM

• Scooter: 246,080 units, down 20% MoM

Source: Society of Indian Automobile Manufacturers

Shares of Jubilant Foodworks Ltd. rose nearly 3% in intraday trade to Rs 4,032 apiece.

• The company said it will consider a proposal for alteration in the capital of the company by sub-division/split of existing equity shares, in its board meeting on Feb. 2.

• The company will also reports its earnings for the quarter ended December on Feb. 2

Of the 31 analysts tracking the company, 18 maintained 'buy', nine maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 5.3%.

Source: Exchange Filing, Bloomberg

• ICICI Bank Ltd. has 1.12 million shares change hands in a bunched trade.

• Details of buyers and sellers are not known immediately.

Source: Bloomberg

Shares of One 97 Communications rose as much as 4.75% in intraday trade.

• The stock is poised to snap a eight-day losing streak.

• Over the eight sessions between Jan. 4 and Jan. 13, the stock shed 23%.

• This is the longest losing streak for the stock since its listing on November 18, 2021.

Source: Bloomberg

India's stock benchmarks declined, dragged by losses in banking and telecom stocks, amid a fall in global equities after Federal Reserve officials hinted at aggressive steps to tackle surge in inflation.

The S&P BSE Sensex fell 0.33% to 61,031.36. The NSE Nifty also declined by similar magnitude to 18,207.10. Asian Paints Ltd. had the largest drop, falling 3%. In midday trading, 31 of 50 shares fell, while 19 rose.

The broader indices outperformed their larger peers with S&P BSE MidCap little changed and S&P BSE SmallCap adding 0.4%. Twelve of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Bankex shedding nearly 1%.

The market breadth was skewed in the favour of bulls. About 1,917 stocks advanced, 1,414 declined and 97 remained unchanged.

• Shares of Motherson Sumi Systems Ltd. shed as much as 8.68%, the steepest intraday decline in over a year.

• The stock traded ex-domestic wiring business as the company fixed Jan. 17 (Monday) as the record date to determine shareholders to allot additional shares of domestic wiring harness division.

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

Source: Exchange filing, Bloomberg

• Aditya Birla Fashion and Retail has bought 51% in Masaba Gupta’s eponymous fashion label ‘House of Masaba’ for Rs 90 crore.

• Company said it will strengthen its play into fashion for young and digitally native consumers along with marking a foray into branded beauty and personal care with the acquisition.

Source: Exchange filing

Shares of Gulshan Polyols Ltd. hit 5% upper circuit for the second session a row. Over the past two days, the stock has gained 10%. The relative strength index on the stock is at 84, suggesting it may be overbought.

On Wednesday, InCred Equities initiated coverage with a recommendation of 'add'. The brokerage has set a price target of Rs 898, a implied return of 162%.

InCred Equities

• Initiates coverage with 'add' recommendation; price target set at Rs 898, an implied return of 162%

• Company's plans to expand distillation capacity is set to turn it into a formidable player in distillation industry.

• Extra Neutral Alcohol (ENA)/Ethanol production volume will post 200% CAGR over FY22F-24F.

• Company will have the capacity to meet 4.6% of overall grain-based ethanol demand.

• Estimates sales volume growth at 53% CAGR over FY21-24F aided by expansion, resulting in Ebitda/PAT CAGR of 54%/68% over FY21-24F, respectively.

• Estimates RoE to improve from 19% in FY21 to 43% in FY24F.

• Infosys cut to 'accumulate' from 'buy' at KR Choksey Shares & Sec Pvt; price target set at Rs 2,094.

• NHPC raised to 'add' from 'reduce' at HDFC Securities; price target at Rs 33.

Source: Bloomberg

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

• The 5-year yield was little changed at 5.868%

• The 10-year yield rose 1bp to 6.571%

• The 14-year yield was little changed at 7.017%

• The 5-year-10-year yield spread was 70.3bps, vs previous close 69.1bps

• The NSE Nifty 50 Index fell 0.4%

Source: Bloomberg

Shares of Coastal Corp Ltd. hit 20% upper circuit for the second day. The stock has added 40% over the last two sessions.

InCred Equities initiated coverage of the company with an 'add' rating on Wednesday. The target price was set at Rs 1,852 per share; an implied return of 472%

InCred Equities

• Initiates coverage with 'add'; target price set at Rs 1,852 per share, an implied return of 472%.

• Shrimp exports are back on track with record-breaking volumes every month.

• Expects the momentum in shrimp exports to continue.

• Coastal Corp is well placed to capitalise the opportunity in shrimp processing.

• Foray into distillation business to take shape by Q1FY24F and will aid growth prospects.

• Company has capacity of 6,500 mtpa useable and 3,500 mtpa not useable shrimp processing plants.

• Company's expansion to add two 10,000 mtpa shrimp processing plants (one in Andhra Pradesh and one in Odisha) will provide the trigger to become one of the top three players in India.

Source: Brokerage note, Bloomberg

• Glenmark Pharmaceuticals Ltd. announced that its subsidiary Glenmark Specialty S.A. (Switzerland) received FDA approval for Ryaltris nasal spray.

• The spray is used to treat the symptoms of seasonal allergic Rhinitis in adults and pediatric patients 12 years of age or older.

Source: Exchange Filing

• Reliance Industries Ltd. has 1.76 million shares change hands in a bunched trade.

• Details of buyers and sellers are not known immediately.

Source: Bloomberg

Shares of Tata Metaliks Ltd. declined over 8%, the steepest intraday fall in six weeks, to Rs 847 apiece after the company reported a sequential decline in net profit in quarter ended December.

Tata Metaliks Q3FY22 (Consolidated, QoQ)

• Revenue up 6.97% at Rs 689.80 crore Vs Rs 644.84 crore

• Net profit down 34.73% at Rs 35.65 crore Vs Rs 54.62 crore

• Ebit down 32.04% at Rs 67.82 crore Vs Rs 99.79 crore

• Margin at 9.8% Vs 15.5%

All three analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 46.1%..

Source: Exchange Filing, Bloomberg

India's stock benchmarks opened lower, dragged by losses in banking and information technology stocks, amid a decline in global equities after several Federal Reserve officials hinted at aggressive steps to tackle in the surge in inflation.

The S&P BSE Sensex fell 0.7% to 60,804.22. The NSE Nifty 50 declined by similar magnitude to 18,131.25.

The broader indices outperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap shedding 0.2%. Fourteen of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Information Technology and S&P BSE Bankex shedding over 0.7%.

The market breadth was skewed in the favour of bulls. About 1,512 stocks advanced, 1,157 stocks declined and 98 remained unchanged.

• Indian bond traders will watch how a sale of new 10-year debt fares on Friday. 

• Govt to sell Rs 24,000 crore of bonds including Rs 13,000 crore of new 2032 notes.

• USD/INR little changed at 73.8850 on Thursday.

• 10-year yields fell 3bps to 6.56% on Thursday; 5-year yield dropped 7bps to 5.87%.

• Global funds sold net Rs 1,390 crore of India stocks Thursday: NSE.

• Foreigners withdrew Rs 240 crore of corporate debt.

• State-run banks sold Rs 1,550 crore of sovereign bonds on Jan. 13: CCIL data. Foreign banks sold Rs 158 crore of bonds.

Source: Bloomberg

• Aurobindo Pharma Ltd. has received a warning letter from U.S. drug regulator for its API manufacturing facility in Hyderabad.

• U.S. FDA had conducted inspection at the facility in August 2021.

• Aurobindo Pharma said that the warning letter will not have an impact on existing business and added that it will engage with U.S. FDA to resolve the issue.

Source: Exchange Filing.

AGS Transact Technologies Ltd. has set a price range of Rs 166-175 a share for its initial public offering, in which its founder and shareholders are seeking to raise as much as Rs 680 crore($92 million), according to an advertisement in the Financial Express newspaper Friday.

Investors can bid for minimum 85 shares of face value Rs 10 in the sale, which opens Jan. 19 and closes Jan. 21.

Source: Bloomberg