Sensex, Nifty Log Third Day Of Gains Aided By Banks, RIL
Catch all live updates on share prices, index moves, corporate announcements and more from the Sensex and Nifty, today.
KEY HIGHLIGHTS
Hindustan Zinc Gains The Most In A Month After Reporting 11% YoY Growth In Zinc & Lead Output In Q3
Reliance Jio Infocomm Plans Its Biggest Ever Rupee Bond Sale, Reports Bloomberg
Marico Shares Decline The Most In Five Weeks
L&T Wins Order For Heavy Civil Infrastructure Business
Tata Motors Slips After CLSA Downgrades Stock To 'Sell'
Closing Bell
India's stock benchmarks advanced for the third consecutive session, aided by banking, power and energy stocks.
The S&P BSE Sensex rose 1.14% (over 670 points) to 59,855.93. The NSE Nifty 50 index rose over 1% to close at 17,805.25. This is the first time the 50-stock gauge closed above 17,800 since November 17, 2021.
NTPC Ltd. had the largest increase, rising 5.5%. Today, 36 of 50 shares rose, while 14 fell.
The broader indices underperformed their larger peers with S&P BSE MidCap little changed and S&P BSE SmallCap adding 0.4%. Sixteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Power and Utilities rising over 2%.
The market breadth was skewed in the favour of bulls. About 1,889 stocks advanced, 1,492 stocks declined and 108 remained unchanged.
Sugar Stocks Rally On Production Growth, Stable Pricing Outlook
HUL Executives Meet Maharashtra Distributors
Benchmarks At Day's High; RIL, TCS, SBI Lead Advance
India 10-Year Bond Yield Rises Past 6.5%
Indian government bonds fell sharply, joining a global sell off, with yields climbing to their highest in nearly two years.
Yield on benchmark 10-year government bonds jumped 6 bps to 6.52%, highest since February 2020.
Source: Bloomberg
ICICI Lombard Gains As ICICI Securities Upgrades Stock To 'Buy'
Shares of ICICI Lombard General Insurance Co Ltd. rose 2% in intraday trade to Rs 1,438 apiece after ICICI Securities upgrade the stock from 'hold' to 'buy. The brokerage also raised the target priced from Rs 1,575 to Rs 1,675.
ICICI Securities
Upgrades to 'buy' from 'hold'; price target raisedto Rs 1,675 from Rs 1,575.
Long-term story remains intact.
Strong growth potential of Indian non-life insurance remains the key investment argument of ICICI Lombard.
Stable business model and RoE illustrates the stability of the business
Concerns on competition are overdone as the opportunities in non-life insurance is huge and ICICI Lombard has been able to maintain its market share.
Significant growth levers exist such as recovery in motor new car registrations, synergies from the acquisition of Bharti Axa etc.
Cost synergies with Bharati Axa is likely to be achieved over next 12 months, while revenue synergies is likely to take 24 months.
Of the 26 analysts tracking the company, 18 maintained 'buy', three maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 16.4%.
Vedanta Leads The Decline In Metal Stocks
Vaccine Tie-Up
Winning Streaks: HCL Technologies, L&T Technology, Quess Corp
Shares of HCL Technologies rise for the 11th day, longest winning streak in 22 years.
Shares of L&T Technology advance for the eighth day.
Shares of Quess Corp gain for the sixth day.
Source: Bloomberg
Hindustan Zinc Gains The Most In A Month After Reporting 11% YoY Growth In Zinc & Lead Output In Q3
Shares of Hindustan Zinc Ltd. rose as much as 4.66%, the biggest intraday gain in a month, to Rs 334.5 apiece.
The company’s integrated zinc and lead output rose 11% to 261,000 tonnes in Q3, compared with 235,000 tonnes a year earlier.
Integrated silver production dropped 5% YoY to 173 tonnes.
Mined metal production rose 3% YoY at 252,000 tonnes.
Of the 20 analysts tracking the company, four maintained 'buy', eight maintained 'hold' and eight maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 5.5%.
Trading volume on the stock was 2.3 times the 30-day average volume, for this time of the day, according to Bloomberg data.
Share price crossed above the 50-day, as well as the 200-day simple moving average, indicating potential upward price momentum.
European Markets Open Higher
Oil India Transfers Part Of Numaligarh Refinery Stake To Assam
Oil India Ltd. has transferred over 1.85 crore equity shares of Numaligarh Refinery Ltd. in favour of Government of Assam on January 3, the company said in an exchange filing.
The shares were transferred for a consideration of Rs 217.75 per share, totaling to Rs 404.1 crore.
Post the transfer, Oil India's shareholding in Numaligarh Refinery is 69.63%.
Shares of Oil India Ltd. fell 1% in intraday trade to Rs 196.7 apiece. Of the 22 analysts tracking the company, 14 maintained 'buy', five maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 29.3%.
Source: Bloomberg, Exchange Filing
Sensex, Nifty Advance Aided By Reliance, TCS, Airtel, SBI
Sri Lanka's Cabinet Approves Proposed Tank Farm Deal With India
Sri Lanka will be able to sign an agreement with India to share an oil tank farm in eastern Sri Lanka next week, after the cabinet approved the proposal, according to Sri Lanka's Energy Minister Udaya Gammanpila.
14 of the 99 tanks in the farm will be leased to the Sri Lankan unit of Indian Oil Corp for 50 years while Ceylon Petroleum Corp. will hold 24 tanks.
Cabinet also agrees to a plan for newly incorporated Trinco Petroleum Terminal to own 61 new oil tanks.
Source: Bloomberg
Telecom Stocks Gain; S&P BSE Telecom Index Up Over 1%
Broader Indices Underperform Their Larger Peers
Jindal Steel Is Losing Sales Due To India's Rail Rake Shortage: Managing Director VR Sharma
The company, which transports about 70% of its sales by rail, is only getting about half the number of rakes it requires daily at its Odisha plant.
We have had to lose the sales as time is of the essence.
We are seeing this kind of shortage for the first time and the intensity is high.
The company and its peers have discussed the problem with officials in steel ministry and rail ministry.
VR Sharma, Managing Director, Jindal Steel & Power Ltd.
Source: Bloomberg
Mid-Day Market Update: Sensex, Nifty Gain; RIL, Bharti Airtel, SBI Advance
India's stock benchmarks advanced, aided by gains in banking, energy, power, telecom and utility stocks.
The S&P BSE Sensex rose nearly 400 points to 59,574.40. The NSE Nifty 50 also advanced by similar magnitude to 17,723.45. NTPC Ltd. had the largest increase, rising 3.8%. In midday trading, 34 of 50 shares rose, while 16 fell.
The broader indices underperformed their larger peers with S&P BSE MidCap little changed and S&P BSE SmallCap gaining 0.2%. Fourteen of the 19 sectoral indices compiled by the BSE Ltd. advanced with S&P BSE Power, Telecom, Utilities and Energy rising over 1%.
The market breadth was skewed in the favour of bulls. About 1,811 stocks advanced, 1,485 declined and 126 remained unchanged.
Delhi High Court TO Give Verdict On Plea Challenging Air India Sale On Jan. 6
The Delhi High Court on Tuesday concluded hearing arguments on a petition by ruling Bharatiya Janata Party’s lawmaker Subramanian Swamychallenging the sale of flag carrier Air India Ltd. to Tata Sons Pvt.
Swamy said valuation of Air India is “illegal and arbitrary”; alleged “rigging” in the bidding process.
A lawyer, representing the Indian government in the court, denied any wrongdoing in the sale process.
Lawyers for the Indian government and the Tata unit that won the bidding urged the court to dismiss the petition.
Pendency of the petition can deter lenders for the deal, Tata’s lawyer Harish Salve said during the hearing.
Source: Bloomberg
Reliance Jio Infocomm Plans Its Biggest Ever Rupee Bond Sale, Reports Bloomberg
Bloomberg Exclusive
Reliance Jio Infocomm seeks commitments for Rs 5,000 crore of notes maturing in five years at a coupon of 6.20%.
Jio is planning to use the proceeds from the current proposed deal to refinance liabilities.
Source: People familiar with the matter
Europe Energy Stocks In Focus
European energy shares are in focus as OPEC and its allies are likely to revive halted oil production during their meeting toay.
The 23-nation OPEC alliance led by Saudi Arabia and Russia is all set to ratify another modest output revival of 4,00,000 barrels a day.
In Focus: Royal Dutch Shell, BP, TotalEnergies, Eni, Repsol.
Source: Bloomberg
Analysts Action: Atul
Atul Ltd. raised to 'neutral' from 'sell' at Phillip Securities; price target at Rs 9,000
Source: Bloomberg
Rupee Bonds Drop On Spike In U.S. Treasury Yields
Rupee bonds fell as traders took into account a jump in U.S. Treasury yields. The rupee declined in line with regional peers.
10-year yields climbed 3bps to 6.49% on Tuesday.
USD/INR gains 0.4% to 74.5425 on Tuesday, most in nearly three weeks
Source: Bloomberg
Fino Payments Bank Gains As ICICI Securities Initiates Coverage With 'Buy' Recommendation
Shares of Fino Payments Bank Ltd. rose over 2.8% to Rs 392.3 apiece after ICICI Securities initiated coverage on the stock with a 'buy' recommendation and a target price of Rs 475, an implied return of 24.34%.
The brokerage says that Fino Payments Banks is uniquely positioned to capture growth opportunities in rural India.
Diversified revenue stream, asset-light distribution model and deep rural network to aid company's growth.
Marico Shares Decline The Most In Five Weeks
Shares of Marico Ltd. shed over 3%, the steepest intraday decline in five weeks.
Analysts expect Marico to see further erosion in Ebitda margins due to increase in raw material prices.
Elevated inflation has led to slowdown in consumption, say analysts
Marico Ltd. reported double-digit revenue growth in the quarter ended December, in its pre-results update. Volumes remained flat.
The company says that the quarter was characterised by slowing consumption patterns and added that the slowdown was due to the impact on elevated inflation levels.
Dolat Capital
Maintains 'buy' on the stock with the target price unchanged at Rs 631
Expect company to register 12.13% YoY consolidated revenue growth in Q3FY22.
Expects 210bps YoY erosion in Ebitda margins mainlydue to ~320bps increase in raw material prices.
Believes 20% growth in foods segment on a high base of 74% growth is commendable.
Nirmal Bang
Maintains 'accumulate', but reduces target price to Rs 580 from Rs 605; an implied return of 12.7%.
Consumption has been adversely impacted by inflation.
Volumes remained flat due to slowing consumption and high base for rural.
Margin likely to remain under pressure on a YoY basis.
Pricing interventions at the start of FY22, cost-reduction programs and operating leverage should support operating margin in FY22, which has faced sharp inflationary pressure for the good part of the year.
Of the 40 analysts tracking the company, 27 maintained 'buy', 10 maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 21.3%
India Yield Curve Shifts Higher
Yields rose across the India sovereign yield curve in Tuesday morning trading.
The 4-year yield rose 3.9bps to 5.59%
The 10-year yield rose 3.1bps to 6.491%
The 14-year yield rose 3.6bps to 6.955%
The 4-year-10-year yield spread was 90.1bps, vs previous close 91bps
Source: Bloomberg
NSE Nifty Bank Index Rises Nearly 1%
Alembic Pharma Receives U.S. FDA Final Nod For Doxycycline Hyclate Tablets
Alembic Pharmaceuticals Ltd. received final approval from the U.S. FDA for its Abbreviated New Drug Application for Doxycyclcine Hyclate Delayed-Release Tablets USP, 75 mg, 100 mg, 150 mg and 200 mg.
This is therapeutically equivalent to Doryx tablets. The tablets are indicated to reduce the development of drug resistant bacteria.
It has an estimated market size of $10 million for twelve months ending September 2021, according to IQVIA.
Source: Exchange Filing
L&T Wins Order For Heavy Civil Infrastructure Business
The heavy civil infrastructure business of L&T Construction has secured an order from Delhi Metro Rail Corporation Ltd.
The order pertained to the design and construction of Underground Metro Project of Phase-1 of Patna MRTS.
The project is scheduled to be completed within 42 months.
L&T classified the order as significant which means that the order value was between Rs 1,000 crore and Rs 2,500 crore.
Source: Exchange Filing
Tata Motors Slips After CLSA Downgrades Stock To 'Sell'
Shares of Tata Motors Ltd. shed as much as 1.88%, the steepest intraday decline in over a week, to Rs 488.25 apiece after CLSA downgraded the stock to 'sell' from 'buy' rating.
The brokerage cited high valuations in domestic PV business and slower rate of electrification in Jaguar Land Rover as reasons for the downgrade.
CLSA
Downgrades stock to 'sell' from 'buy'; price target reduced to Rs 408 from Rs 450; implied return of 15%.
Domestic PV business remains overvalued while JLR electric vehicle ramp up remains slowed than peers.
Hinduja Global Gains The Most In Nine Months
Shares of Hinduja Global Solutions Ltd. rose as much as 18.37% to a record Rs 3,920 apiece.
The company will consider the proposals to consider declaration of interim dividend and bonus issue of equity shares on January 6.
This is the biggest intraday gain for the stock in over nine months.
Source: Exchange Filing, Bloomberg
Analysts Action: NMDC, JSW Steel, Fino Payments
NMDC raised to 'add' from 'reduce' at Equirus Securities; price target set at Rs 144.
JSW Steel raised to 'buy' from 'add' at Equirus Securities; price target set at Rs 856.
Fino Payments: ICICI Securities initiates coverage on the stock with a recommendation of 'buy'; price target set at Rs 475.
Source: Bloomberg
Opening Bell: Sensex, Nifty Open Higher; Maruti Suzuki, M&M Advance
India's stock benchmarks opened higher, aided by gains in metal, power and realty stocks.
The S&P BSE Sensex rose nearly 4% to 59,406.23. The NSE Nifty50 also advanced by similar magnitude to 17,678.40. The 50-stock gauge reclaimed 17,700 for the first time since November 22.The S&P BSE Sensex rose nearly 4% to 59,406.23. The NSE Nifty50 also advanced by similar magnitude to 17,678.40. The 50-stock gauge reclaimed 17,700 for the first time since November 22. NTPC Ltd. had the largest increase, rising 2.4%. In early trading, 43 of 50 shares rose, while seven fell.
The broader indices outperformed their larger peers with S&P BSE MidCap adding 0.5% and S&P BSE SmallCap gaining 0.75%. Barring S&P BSE Information Technology, all the other 18 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Power and Utilities leading the gains.
The market breadth was skewed in the favour of bulls. About 2,158 stocks advanced, 599 declined and 71 remained unchanged.
HDFC Bank Sees 16.4% YoY Rise In Advances In October-December Quarter
Advances at approximately Rs 12.6 lakh core as of Dec. 31, 2021, up 5.1% quarter-on-quarter.
Retail loans up 4.5% QoQ; commercial and rural banks loans up 6% QoQ; corporate and wholesale loans up 4.5% QoQ.
Deposits rose 13.8% YoY and 2.8% QoQ to Rs 14.06 lakh crore.
CASA ratio at 47% as of December-end.
Source: Exchange Notification
Rupee Bond Traders Await Weekly State Debt Auction
Rupee bond traders are looking forward to a Rs 19,340 crore ($2.6b) auction of state government debt. The rupee may slip on preliminary trade data indicating a deficit for December.
USD/INR falls 0.1% to 74.2588 on Monday.
India’s merchandise exports climbed 37% YoY to $37.3 billion in December, while imports soared a little over 38% to $59.3 billion, according to preliminary data released by the nation’s trade ministry on Monday.
Trade deficit in December was $22 billion, wider than the $15.7 billion gap seen in the year-ago period.
10-year yields climbed by 1 bp to 6.46% on Monday.
Global funds buy net Rs 903 crore of India stocks Monday: NSE
They sold Rs 30 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 307 crore of corporate debt.
State-run banks bought Rs 1,590 crore of sovereign bonds on Jan. 3: CCIL data. Foreign banks sold Rs 1,140 crore of bonds.
Source: Bloomberg
Vedanta Q3 Aluminum Output Rises 16% YoY
Vedanta Ltd.'s aluminum production in October-December was 2% higher from the prior three-month period.
Total aluminium production at Rs 5,79,000 tonnes
Total oil and gas gross output in Q3 was little changed YoY at 14.6 million barrels of oil equivalent.
Saleable steel output rose 3% YoY to 3,50,000 tonnes in Q3.
Source: Exchange Filing
Adani Ports Reports 35% YoY Growth In Cargo Volume Handled In Nine Months Ending Dec. 31, 2021
Adani Ports and Special Economic Zone Ltd.handled a cargo volume of 234.31 MMT during the nine months ending Dec. 31, 2021. This is a growth of 35% and exceeds the volume handled by Adani Ports in FY20.
Non-Mundra ports grew by 74% and contributed 52% of the total cargo basket.
Mundra port grew by 8% and handled cargo volume of 113 MMT.
Dry cargo volume registered a growth of 49%.
Source: Exchange Filing
Analysts Expect Marico To Face Pressure On Margin Front In The Near-Term
Marico Ltd. reported double-digit revenue growth in the quarter ended December, in its pre-results update. Volumes remained flat.
The company says that the quarter was characterised by slowing consumption patterns and added that the slowdown was due to the impact on elevated inflation levels.
Dolat Capital
Maintains 'buy' on the stock with the target price unchanged at Rs 631
Expect company to register 12.13% YoY consolidated revenue growth in Q3FY22.
Expects 210bps YoY erosion in Ebitda margins mainlydue to ~320bps increase in raw material prices.
Believes 20% growth in foods segment on a high base of 74% growth is commendable.
Nirmal Bang
Maintains 'accumulate', but reduces target price to Rs 580 from Rs 605; an implied return of 12.7%.
Consumption has been adversely impacted by inflation.
Volumes remained flat due to slowing consumption and high base for rural.
Margin likely to remain under pressure on a YoY basis.
Pricing interventions at the start of FY22, cost-reduction programs and operating leverage should support operating margin in FY22, which has faced sharp inflationary pressure for the good part of the year.
Shriram EPC To Issue Rs 350-Crore Shares To Mark AB Capital
Shriram EPC Ltd. will issue equity shares of the company worth Rs 350 crore to Mark AB Capital Investment LLC, according to an exchange filing.
It will also issue compulsory convertible debentures amounting to Rs 175 crore and non-convertible debentures of Rs 175 crore, as per a resolution plan.
Source: Exchange Filing
Biocon Biologics Approves The Merger Of CovidShield Technologies
Biocon Biologics approves a merger of Covidshield Technologies, a wholly-owned subsidiary of Serum Institute Life Sciences, with self.
As a part of the transaction, Biocon Biologics will get committed access to 100 million doses per annum for 15 years.
Doses will be primarily from SILS’s upcoming vaccine facility in Pune with commercialization rights of the SILS vaccine portfolio (including Covid-19 vaccines) for global markets.
Adar Poonawalla will have a board seat in Biocon Biologics.
Biocon Biologics will offer a 15% stake to SILS.
There is no cash consideration involved
Source: Exchange Filing
Kenneth Andrade Shares Top Investment Bets For 2022
SGX Nifty Hints At Muted Start; Tata Motors, Biocon, Marico, Maruti Suzuki, HDFC, GAIL In Focus
Asian stocks advanced on Tuesday after the S&P 500 closed at a record high on the first trading day of 2022.
Equities advanced in Japan and Australia. U.S. futures fluctuated after the Nasdaq 100 outperformed. The U.S. gains followed European stocks which hit unprecedented highs.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index's performance, was little changed at 17,687.50, as of 8:10 a.m.
The dollar held gains. Elsewhere, crude oil in New York traded near $76 a barrel, ahead of an OPEC+ meeting on Tuesday to discuss production. Bitcoin hovered around $46,000.
Stocks To Watch
Marico: The company's consolidated revenue growth in Q3 was in low teens. High inflation slowed consumption. India business saw double-digit revenue growth, while volumes were flat. The company expects gross margin to improve sequentially but remain lower year-on-year. International business delivered high-teen constant currency growth, led by Bangladesh and Vietnam.
Maruti Suzuki: Total production in December declined 1.99% to 1,52,029 units. The company exported 2,05,450 vehicles in 2021—the highest in any year.
HDFC: Assigned loans of Rs 7,468 crore in Q3 to HDFC Bank. Gross income from dividend for the quarter was Rs 195 crore. Profit on sale of investments was nil. The company has liquidity buffers of about Rs 55,000 crore.
Hindustan Zinc: The company’s integrated zinc and lead output rose 11% to 261,000 tonnes in Q3. Integrated silver production dropped 5% YoY to 173 tonnes. Mined metal production was up 3% at 252,000 tonnes.
Vedanta: The cast metal aluminium production rose 16% year-on-year to 579,000 tonnes in Q3. The Lanjigarh refinery produced 472,000 tonnes of alumina in Q3, 16% higher than a year ago. Total power sales were 3,450 million units, 68% higher than Q3 FY21.
Tata Power: Appointed Sanjeev Churiwala as the new CFO effective Jan. 1. Ramesh Subramanyam, the erstwhile CFO, to move into a new role within the Tata Group.
GAIL: To pay Rs 913.84 crore to the government and Rs 862.31 crore to other shareholders as first interim dividend for FY21-22.