Sensex, Nifty Log Gains For Third Day Aided By I.T., Power Stocks

India's stock benchmarks logged gains, aided by gains in information technology, utilities and power stocks. This is the third day in which the S&P BSE Sensex and NSE Nifty 50 have advanced.

The Sensex rose 0.37% to 60,616.89. The NSE Nifty 50 advanced by similar magnitude to 18,055.75. The is the highest closing level since Nov. 15 for the 50-stock gauge.

HCL Technologies Ltd. had the largest increase, rising 4.3%. Today, 24 of 50 shares rose, while 26 fell.

The broader indices underperformed their larger peers with S&P BSE MidCap closing little changed and S&P BSE SmallCap adding 0.15%.Thirteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Power and S&P BSE Utilities gaining over 1.7%. On the flipside, S&P BSE Metal shed 2.75%.

The market breadth was skewed in the favour of bulls. About 1,939 stocks advanced, 1,509 declined and 65 remained unchanged.

• Adani Power’s board approves appointment of Shersingh Khyalia as CEO, with effect from Jan. 12, 2022.

• Khyalia is a chartered accountant with over 32 years in power industry.

Source: Company statement

Shares of Fortis Healthcare Ltd. fell 2.44%, the steepest intraday decline in three sessions to Rs 282.35 apiece

A suit has been filed against the company along with others by Emqore Envesecure alleging copyright infringement, tortious interference with contracts, etc. and has claimed damages more than $6.5 billion from all defendants

Of the ten analysts tracking the company, nine maintained 'buy' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 12.2%.

Franklin India High Growth Companies Fund/India added Maruti Suzuki India Ltd. to its investments. The fund also exited position in Lupin Ltd. in December.

Two news buys

• Maruti Suzuki

• Emami

Five increased holdings

• Cummins India

• HDFC Bank

• Cipla

• Hindustan Unilever

• Bajaj Auto

Source: Bloomberg

Shares of AU Small Finance Bank Ltd. rose 5% in intraday trade to Rs 1,296.5 apiece.

The stock has risen over 20% since reporting Q3 business update on Jan. 4.

Provisional Numbers

• Total Deposits grew by 13% in Q3 to Rs 44,278 crore QoQ

• CASA ratio at 39% versus 30% QoQ

• 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, 13 maintained 'buy', eight maintained 'hold' and six maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg is similar to the current stock price.

Tata Group will replace Chinese mobile maker Vivo as Indian Premier League's title sponsor next year, Press Trust of India reports, citing IPL Chairman Brijesh Patel.

Shares of Coforge Ltd. rose over 5% after Jefferies initiated coverage of the stock with 'buy' recommendation. The brokerage acknowledged the transformation of the company over the past three years and said that the company is poised to deliver 18% revenue CAGR over FY22-24.

Jefferies

• Initiates coverage of the stock with a 'buy' recommendation; price target set at Rs 7,400; an implied return of 32.60%.

• Company has undergone transformation over the past three years, as seen from the surge in new client additions, large deal wins and strengthening of front-end sales team.

• Vertical-focused approach and cross-sell focus is helping to scale up existing large accounts.

• Investments in digital technologies like automation and cloud services to drive growth.

• Firm well positioned to deliver 18%/32% revenue/Earnings per share CAGR over FY22-24

• Scale up of BFS Vertical, insurance and recovery in travel vertical to aid growth.

• Recent deal wins have greater offshoring which should aid gross margins.

• Recent re-rating of the stock reflects the turnaround in the company's prospects.

• Key Risks: Churn at senior management level, further stake sale by promoters and delayed recovery in the travel vertical.

Of the 28 analysts tracking the company, 19 maintained 'buy', five maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 2.6%.

• Madras High Court has extended the Single Judge's stay on proceedings till Jan. 28 granting SpiceJet time to approach Supreme Court.

• On Dec 6, along with the admission order, the Single Judge had stayed further proceedings subject to SpiceJet depositing $5 million in two weeks.

Source: Lawyer involved in the matter

India's stock benchmarks advanced, aided by gains in information technology, utilities, power and realty stocks

The S&P BSE Sensex rose 0.25% to 60,545.79. The NSE Nifty 50 also advanced by similar magnitude to 18,039.70. HCL Technologies Ltd. had the largest increase, rising 4.1%. In midday trading, 20 of 50 shares rose, while 30 fell.

The broader indices outperformed their larger peers with the S&P BSE MidCap rising 0.33% and S&P BSE SmallCap adding nearly 0.7%. Fifteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Realty gaining nearly 1.5%. On the flipside, the S&P BSE Metal index fell 1.75%.

The market breadth was skewed in the favour of bulls. About 2,090 stocks advanced, 1,281 declined, 84 remained unchanged.

• Marksans Pharma Ltd. received final approval from U.S. FDA for its Abbreviated New Drug Application for over the counter (OTC) Cetirizine Hydrochloride Tablets 5 mg and 10 mg.

• The drug is indicated for treatment of perennial allergic rhinitis including sneezing, rhinorrhea, postnasal discharge, watery eyes.

Source: Exchange Filing

Adani Green Energy Ltd.'s sale of energy rose 97% YoY to 2,504 million units in Q3, according to its quarterly business update.

• 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%.

Source: Exchange Filing

• Reliance Industries Ltd. has 2 million shares change hands in a bunched trade.

• Details of buyers and sellers are not known immediately.

Source: Bloomberg

Petitioners today informed the court of various glitches faced by chartered accountants in filing Income Tax Returns and Audit reports.

• Court declines petitioners' plea to extend the deadline for filing audit report from Jan 15 to Feb 15.

• CBDT to file counter in two weeks.

Source: Gujarat HC Proceedings

Indian bonds gain after the government’s plan to issue new 10-year notes this week, which tend to be priced aggressively compared to current benchmark. Rupee is at a two-month high.

• India will sell Rs 13,000 crore of new 2032 bonds as part of a Rs 24,000 crore sale on Friday

• 10-year yields down 2 bps to 6.57%; rose 5bps to 6.59% on Monday after data showed central bank had stepped up secondary market bond sales

• 5-year yield also drops 2bps to 5.93%

Source: Bloomberg

Sresta Natural Bioproducts Ltd., which sells packaged organic food under the ‘24 Mantra’ brand, seeks SEBI approval to raise as much as Rs 50 crore selling new shares in an initial public offering, while its shareholders plan to sell as many as 7.03 million shares, according to a draft red herring prospectus.

Selling shareholders include:

• Peepul Capital Fund III for up to 2.25 million shares

• Ventureast Life Fund III for up to 1.52 million shares

• Veutureast Trustee Company on behalf of the Biotechnology Venture Fund for up to 2.18 million shares

• Ventureast Trustee Company on behalf of Ventureast Life Fund III for up to 1.07 million shares

JM Financial and Axis Capital are the bankers for the IPO.

Source: Bloomberg

Aurobindo Pharma Ltd. announced that its subsidiary CuraTeQ Biologics Pvt Ltd has expanded scope of marketing and distribution agreement with Orion Corporation to commercialise biosimilars pipeline to include the Baltic states in Europe.

• Orion will be responsible for commercialisation of CuraTeQ's biosimilar products. CuraTeQ will leverage Aurobindo's established commercial presence in nine European markets UK, France, Germany, Spain, Italy, Portugal to commercialise its biosimilar products.

Source: Exchange Filing

Shares of JBM Auto rose 5% to Rs 1,565.65 apiece. This is the fourth consective session in which the stock has gained.

• Over the last four sessions, the stock has added 25% compared to 1.70% for Nifty 50.

• The company acquired 51% stake in JBM Green Energy Systems and JBM EV Industries through its subsidiary JBM Electric Vehicles on Monday.

• JBM Green Energy Systems and JBM EV Industries are now indirect subsidiary companies of JBM Auto.

• JBM Green Energy in engaged in manufacturing complete lithium-ion battery packs for EVs.

• JBM EV Industries manufactures key aggregates and auto systems for EVs.

• The stake acquisition is aimed at further consolidating JBM Auto's initiative of creating end-to-end E-mobility platform completely localised in India.

Source: Exchange Filing, Bloomberg

Longer-term India sovereign securities gained in Tuesday morning trading.

• The 2-year yield remained unchanged at 4.698%

• The 10-year yield fell 1.4bps to 6.576%

• The 14-year yield fell 2.1bps to 7.036%

• The 2-year-10-year yield spread was 187.8bps, vs previous close 189.2bps

• The NSE Nifty 50 Index rose 0.1%

Source: Bloomberg

India's stock benchmarks advanced, aided by gains in information technology and banking stocks, amid weak global cues as S&P500 posted its longest losing streak in over three months.

The S&P BSE Sensex rose 0.29% to 60,571.30. The NSE Nifty advanced by similar magnitude to 18,053.90.

The broader indices almost mirrored their larger peers with both S&P BSE MidCap and S&P BSE SmallCap gaining 0.1%. Thirteen of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Metal shedding over 1.5%.

The market breadth was skewed in the favour of bulls. About 1,876 stocks advanced, 934 declined and 88 remained unchanged.

• Steel Authority of India Ltd. cut to 'reduce' from 'buy' at Kotak Securities; price target set at Rs 110.

• Fiem Industries Ltd.: Sushil Finance initiated coverage of stock with a 'buy' recommendation; price target set at Rs 1,570.

Source: Bloomberg

Citigroup

• Commodities and financials will likely drive earnings growth for Indian stocks in quarter ended December.

• Growth could be 24% YoY, but flattish excluding commodities and financials sectors.

• Margin pressures expected across most sectors.

• Remain overweight on banks, industrials, real estate.

• Remain underweight on materials and consumer stocks.

• Demand recovery likely to be uneven in Q3FY22.

Source: Bloomberg

Indian bond traders will assess the government’s plan to issue new 10-year notes which tend to be priced aggressively compared to the current benchmark paper.

• India will sell Rs 13,000 crore of new 2032 bonds as part of a Rs 24,000 crore sale on Friday.

• RBI to hold Rs 2 lakh crore 7-day variable reverse repo auction on Tuesday.

• USD/INR falls 0.4% to 74.0375 on Monday.

• 10-year yields rose 5bps to 6.59% on Monday after data showed that the central bank had stepped up its secondary market bond sale

• Global funds sold a net Rs 124 crore of Indian stocks Monday: NSE.

• They sold Rs 354 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 43 crore of corporate debt.

• State-run banks bought Rs 361 crore of sovereign bonds on Jan. 10: CCIL data. Foreign banks sold Rs 5.96 crore of bonds.

Source: Bloomberg

India is considering increasing the standard deduction for salaried taxpayers and pensioners by 35% in the upcoming budget, reports the Economic Times citing unnamed officials.

• Income tax slabs are likely to remain unchanged.

• Currently, standard deduction of Rs 50,000 is allowed for personal income tax.

Anil Agarwal's Vedanta Resources Ltd. plans to raise $1 billion by selling bonds to global investors, the Economic Times newspaper reported, citing three unnamed people familiar with the matter.

• Vedanta seeks to refinance existing debt to lower funding costs

• Deal is likely to be launched within 1-2 weeks.

• Deal is handled by Barclays, Deutsche Bank, Citi Bank, Standard Chartered and others

• Vedanta didn’t respond to ET’s request for comment. ET couldn’t reach individual banks

• Net Present Value of spectrum interest and AGR dues is expected to be about Rs 16,000 crore, subject to confirmation by Telecom Department.

• Conversion to result in dilution to all the existing shareholders of the company, including the promoters.

• Government is expected to hold around 35.8% of the total outstanding shares of the company following conversion.

• Vodafone Group will hold 28.5%, while Aditya Birla Group will hold 17.8%.

Source: Exchange Filing

Asian stocks opened mostly lower on Tuesday after the S&P 500 closed lower for the fifth consecutive session.

Japan shares declined and Australian equities also fell while South Korea advanced. U.S. contracts were volatile after the S&P 500 posted its longest losing streak in over three months. The Nasdaq 100 recovered to end with gains after sliding as much as 2.7%

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index's performance, shed 0.24% to 18,003.50, as of 8:10 a.m.

Elsewhere, Bitcoin recovered to around $42,000 after dipping below $40,000, putting it on track for its worst start to a year since the earliest days of digital currencies. Oil edged up.

Stocks To Watch

• One97 Communications: The company disbursed loans worth Rs 2,180 crore in October-December quarter, up 73% QoQ. Gross merchandise value for Q3 stood at Rs 2.5 lakh crore, up 28% QoQ. Average monthly transacting users rose to 6.44 crore in Q3, up 12.5% QoQ. The company also deployed over 20 lakh devices in Q3, up 54% QoQ.

• Axis Bank: Approves re-appointment of Rajiv Anand as deputy MD for three years.

• Fortis Healthcare: A suit has been filed against the company along with others by Emqore Envesecure alleging copyright infringement, tortious interference with contracts, etc. and has claimed damages more than $6.5 billion from all defendants.

• Bank of Baroda: The bank has cut overnight MCLR from 6.50% to 6.45% effective Jan. 12, 2022.

• Sona BLW Precision Forgings: The NCLT has sanctioned the scheme of amalgamation of Comstar Automotive Technologies with Sona BLW Precision Forgings and their respective shareholders.

• RPSG: The company will consider fund raising proposal on Jan. 13.

• Earnings: Delta Corp, National Standard (India)