Indices bounce back with Sensex gaining 700 pts, Nifty tops 18k; PSU Bank shines | Mint

2023-01-14 00:31:26 By : Ms. Candy Wu

Share Market Close: Indian stock market remained strong on Monday as Sensex closed above 60,500 and Nifty above the 18,000 mark. SBI, IndusInd Bank, and Hindalco jumped; Divi's Lab, Cipla and Dr Reddy's dragged. PSU Bank, Metal, Media and Realty gained, while Pharma shed.

Asian stocks tracked Friday's Wall Street gains and ended the day higher on Monday. Tokyo, Seoul and Shanghai climbed in today's session. Hong Kong, Europe and US markets remain on holiday for Christmas  China Steel Metal Book Shelf

Indices bounce back with Sensex gaining 700 pts, Nifty tops 18k; PSU Bank shines | Mint

Indian indices came back strongly on Monday tracking Friday's Wall Street gains and other Asian peers. Investors chose to overlook the grim Covid situation in China and bargain-hunted in today's session.

Sensex jumped 721 points and reclaimed the 60,000 mark to close at 60,566. In the same way, Nifty went above 18,000 to close at 18,014, a gain of 207 points.

Most of the sectors made handsome gains with PSU Bank gaining 7%. Metal, Realty, Bank and Media also jumped more than 2%. Pharma and Healthcare sectors dragged and closed in the red.

Kunal Shah, senior technical analyst at LKP Securities said on Bank Nifty, "The index downside support now stands at 42,000 where aggressive put writing has been observed. The next hurdle on the upside is seen at 43,000 where the highest open interest is built up on the call side. The index remains in buy mode as long as the mentioned support is held on a closing basis."

Among stocks, IndusInd Bank, SBI, and Hindalco jumped, followed by Coal India and Bajaj Finserv. Cipla, Divi's Lab, Dr Reddy's and Nestle India shed in today's session.

Asian stocks mostly ended higher on Monday lifted by gains on Wall Street last week, though the spread of Covid in China weighed on investor sentiment.

Tokyo shares closed higher on Monday as the benchmark Nikkei 225 index climbed 0.65%, while the broader Topix index firmed 0.24%. Technology and energy stocks led the gains, while a drop in banks and insurers weighed on the market.

South Korean shares reversed early losses to close slightly higher with the benchmark index marking a rebound from a big drop seen in the previous session. The benchmark KOSPI ended or 0.15% higher.

China stocks rose as investors bet on a likely recovery in consumption trends. Defence-related shares, meanwhile, jumped amid heightened tensions around the Taiwan Strait.

China's blue-chip CSI300 index closed up 0.4%, while the Shanghai Composite Index gained 0.7%. Hong Kong markets were closed on Monday for Christmas.

European and American markets will also remain closed on Monday on account of Christmas/Boxing Day.

GPT Infraprojects (GPT) announced on Monday that its subsidiary --RMS GPT Ghana Limited -- has bagged an order valued at ₹ 123 crore from RMS Concrete, Ghana.

According to the statement, the subsidiary will manufacture and supply 130,000 set standard gauge pre-stressed railway concrete sleepers. The company also said this contract is in the name of the subsidiary in which GPT Infra's share is 60 per cent for which the subsidiary is setting up a factory in Ghana

GPT Infraprojects, the flagship company of GPT Group, is an infrastructure company based out of Kolkata, according to a statement. GPT, incorporated in 1980, operates through two business divisions - infrastructure and sleepers. The company made inroads into the infrastructure segment in 2004 and is now an established railway-focused player. (ANI)

A significant percentage of employees are demanding more flexibility in their working lives, and they are prepared to make compromises to get it, as per a report.

According to the ADP Research Institute's People at Work 2022: A Global Workforce View, which surveyed almost 33,000 workers across 17 countries, more than 7 in 10 are seeking more flexibility in how they structure their working time.

In India, 76.07 per cent of employees would prefer having control over their working hours, the report said, adding that they would take a pay cut to guarantee the flexibility of working remotely or have the opportunity to alternate between home and office.

As per the report, around 76.38 per cent of employees in India would look for a new job if asked to return to work full-time. (PTI)

Jakson Group on Monday said it has bagged a 121 MW solar project from Amplus Solar in Bikaner, Rajasthan. The company said the green capacity will be constructed on an engineering, procurement and construction (EPC) mode. The project will use nearly 3,000 single-axis trackers and over 224,448 monocrystalline bifacial solar modules rated 540Wp. (Read More)

India's export of agriculture and allied commodities rose 11.97 per cent to USD 30.21 billion during April-October period of current fiscal year, the agriculture ministry said on Monday.

The exports stood at USD 26.98 billion in the same period of 2021-22, it said in a statement.

Wheat, basmati rice, raw cotton, castor oil, coffee, and fresh fruits were major commodities exported from India.

The overall export of agri and allied commodities rose 20 per cent to USD 50.24 billion in 2021-22, when compared with USD 41.86 billion in the previous year, it added. (PTI)

ITC Ltd is well placed to record strong performance in 3QFY23, driven by a) strong double-digit growth in cigarette volume, b) sustained momentum in Papers and FMCG business, and c) robust recovery in Hotels, which is expected to report best ever quarter, as per brokerage and research firm Antique Stock Broking.

“As per our channel checks, ITC's cigarette off-take has continued to witness strong traction during 3QFY23 driven by stable prices over the past two years and increase in people's mobility coupled with superior execution. Robust paper business performance is expected to continue driven by premiumization of portfolio with strong margins on the back of backward integration of pulp manufacturing," the note stated. (Read More)

Despite discounted listing of Landmark Cars shares, Goldman Sachs has bought stake in the company that has dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. As per the in formation available on NSE website, Goldman Sachs India Equity Portfolio has bought 3,92,421 Landmark Cars share. Goldman Sachs bought these shares paying ₹ 466.55 apiece. This means the investment company pumped ₹ 18.30 crore in Landmark Cars during Friday deals. The global investment firm bought these shares through a bulk deal executed on Friday last week.

According to stock market experts, Landmark Cars deals in high end car dealership and the company is expected to pick up its sales pace once there is pace coming into the global economy. High risk traders can buy the scrip at current levels while those who have this stock are advised to hold the stock for immediate target of ₹ 480 and long term target of ₹ 660. (Read More)

Adani Wilmar shares are one of the multibagger stocks that Indian stock market has produced in 2022. The Adani group stock was listed on BSE and NSE on 8th February 2022. The stock had a decent debut on Dalal Street but post-listing it delivered a stellar return to its allottees and in less than one year it has given more than  a100 per cent return to its allottees.

However, the steam in this multibagger stock is still not over. Adani Wilmar shares today hit a 5 per cent upper circuit in early morning deals. Adani Wilmar's share price today opened with an upside gap and went on to hit a 5 per cent upper circuit at ₹ 524.60 apiece levels. (Read More)

Coal India (CIL) has appointed Mukesh Choudhary as director for marketing on the board for five years.

Choudhary has assumed charge from Friday, the state-owned Maharatna coal mining behemoth said in a statement shared with stock exchanges.

Prior to taking up the reins of CIL marketing division's top slot, he was deputy director general of the department of defence production under the ministry of defence. Choudhary assumed the charge from B Veera Reddy, director for technical, CIL, who was additionally officiating as director for marketing since May of this year.

An officer of Indian Ordnance Factory Services (IOFS) 1996 batch, Choudhary completed Mechanical Engineering with honours from Engineering College Kota. He also holds a master of financial analysis (MFA) degree and an MBA degree. (ANI)

India's growth trajectory will rise to the third spot by 2037 from the current fifth spot on the World Economic League Table, according to Cebr. The Centre for Economics and Business Research said that over the next five years, India's annual rate of GDP growth is expected to average 6.4%, after which growth is expected to average 6.5% in the subsequent nine years.

According to the Cebr report, India's estimated PPP-adjusted GDP per capita is $8,293 in 2022-- classifying it as a lower middle-income country. PPP GDP is gross domestic product converted to international dollars using purchasing power parity rates. (Read More)

Shares of Suryoday Small Finance Bank has risen after the newsbreak of transfer of bad loans including written off loans to Asset Reconstruction Company (ARC). Suryoday Small Finance Bank share price today opened upside and went on to climb to its intraday high of ₹ 107.45 on NSE, logging around 7.50 per cent in early morning deals on Monday session.

According to stock market experts, the small finance banking stock is rising due to the recent exchange filing by the bank where it has informed Indian bourses that its board of directors has agreed to transfer its stressed loan portfolio (Financial Assets), including written-off loans to ARC. They said that the stock has bounced back from its consolidation phased and may go up to ₹ 125 to ₹ 130 apiece levels. They advised investors to buy the stock and keep on accumulating till it is above ₹ 90 apiece levels. (Read More)

Payment service provider PayU has fired 150 staff, that is 6% of the company's workforce to realign its team locally, according to a report by the Economic Times. The layoffs at the Netherlands-based company are spread across teams and mainly impact PayU's India unit and Wimbo--a California-based payment and security company that PayU acquired in 2019 for $70 million.

PayU is the investment arm of South African multinational Naspers. Its other fintech businesses include Citrus and LazyPay. (Read More)

PSU Bank, Media, Realty and Metal stocks lead the rally

Co-working major WeWork India on Monday said it has raised ₹ 550 crore from funds managed by BPEA Credit.

The amount will be used for future growth and potential consolidation opportunities.

WeWork India has a portfolio of around 70,000 desks spread over 6 million square feet area in 41 centres across Bengaluru, Mumbai, Gurugram, Noida, Hyderabad, and Pune.

“Flexibility is paramount in today's workforce and the investment by BPEA Credit stands testament to the massive growth opportunity for flex workspaces in India," said Karan Virwani, CEO, WeWork India.

He said the investment also validates WeWork India's strong fundamentals and healthy business model. (PTI)

The Water & Effluent Treatment Business of L&T Construction has secured a prestigious order from the Tumakuru Industrial Township Limited (TITL) under the Chennai Bengaluru Industrial Corridor (CBIC) and repeat orders from the Tamil Nadu Water Supply and Drainage Board (TWAD Board), Government of Tamil Nadu, funded by the Asian Development Bank (ADB).

The order from TITL is to design, construct, test, commission, operate and maintain infrastructure works at the Tumakuru Node, Karnataka on an EPC basis. The scope of work involves design and construction of 38 km of roads along with storm water drains, cross drainage structures, potable and recycled water supply systems, sewerage & effluent collection network, power distribution system. (Read More)

Shares of IDFC First Bank Ltd surged more than 3% to ₹ 54 apiece on the BSE in Monday's early trading session after the bank clarified on the reports of the lender in talks of acquiring assets of Vaya Finserve.

“In this regard, we would like to clarify that the Bank is in discussion with Vaya Finserve for possible buyout of their loan receivables in accordance with Reserve Bank of India Master Direction on Transfer of Loan Exposures Directions, 2021, to meet the Priority Sector Lending (“PSL") requirements of the Bank," IDFC First Bank informed in an exchange filing. (Read More)

Alembic Pharmaceuticals on Monday said it has received final approval from the US health regulator for its generic Fulvestrant injection used in treatment of breast cancer.

The approval granted by the US Food & Drug Administration (USFDA) is for the abbreviated new drug application (ANDA), Fulvestrant injection of strength 250 mg/5 mL (50 mg/mL) per single-dose prefilled syringe, the company said in a statement.

The approved injection is therapeutically equivalent to the reference listed drug product (RLD), Faslodex Injection, of AstraZeneca Pharmaceuticals LP, it added. (PTI)

Fund mobilisation by companies through equity and debt routes has dropped 20 per cent in 2022 to nearly ₹ 11 lakh crore, as exuberance dwindled this year due to expensive credit avenues and volatile markets. The first half of 2023 could continue to remain challenging.

The year 2021 was extraordinary for fundraising from the equity and debt routes, while 2022 has seen a slowdown in capital raising owing to elevated volatility provoked by unprecedented inflation globally and the Russia-Ukraine war.

"The first half of 2023 could continue to be challenging, largely driven by global macro developments. If the slowdown/recession in the US is mild, then we could see a rally in global markets in the second half of next year, which would aid investor sentiment and the Indian markets as well," said Vishal Chandiramani, Managing Partner Products and COO, TrustPlutus Wealth (India) Pvt Ltd. (PTI)

While Covid-19 cases have resurged in several countries, in India the number of infections declined marginally on Monday, according to the latest data from the Union Health Ministry. India on Monday logged 196 new coronavirus infections whereas yesterday, 201 Covid cases were reported.

However, the active cases of Covid-19 have marginally increased to 3,428. An increase of four cases has been recorded in the active Covid caseload in a span of 24 hours. (Read More)

Gujarat Fluorochemicals’ (GFL) stock price has corrected about 20% in the past one month, and 25% in the past three months while fundamentals remain robust with opportunities expanding, as per domestic brokerage and research firm ICICI Securities. The stock trades at a reasonable P/E valuation which makes it the most affordable India fluorine player by valuations, as per the brokerage.

“It offers a strong net profit CAGR of 41% over FY22-24E, and return ratios are healthy, post-tax ROCE at 21% and ROE at 25.6% in FY24E. Within fluorine chemistry, we relatively prefer fluoropolymers business as it is in a sweet spot to grow along with new-age industries such as batteries, solar panels and green hydrogen," the note stated. (Read More)

Hemang Resources shares are one of those stocks on Dalal Street that has outperformed investors' expectations by a huge margin. This small-cap multibagger stock has delivered a 21-bagger return after surging from around ₹ 3 to ₹ 66 apiece levels. The small-cap stock has delivered such a whopping return in a year which is highly tumultuous for equity investors due to rising global inflation, geopolitical tension and hawkish central banks across the world.

Shares of Hemang Resources, which was formerly known as Bhatia Industries & Infrastructure Ltd, surged around 20 per cent in the last month. The small-cap stock has delivered a lip-smacking return to its shareholders in the last six months as it has risen from near 51 to ₹ 66 apiece levels, giving near 30 per cent return to its shareholders. (Read More)

Shares of Indian news broadcaster New Delhi Television Ltd rose over 4% on Monday after founders Prannoy Roy and Radhika Roy said they would transfer their 27.26% stake in the company to the Adani Group. (Reuters)

India is set to rank among this year’s best-performing major stock markets globally, overcoming concerns about higher interest rates and an economic slowdown that has mired peers. The S&P BSE Sensex Index is up 3% so far in 2022, the biggest gain in the world after measures in Singapore and Indonesia. A solid run of earnings buoyed key Indian benchmarks to record levels, making the market larger than the UK. Meanwhile, the MSCI All Country World Index has fallen 20%.

This year’s winners include shares linked to billionaire Gautam Adani and banks boosted by a sharp recovery in credit demand. Some of the biggest losers were shares of technology firms that languished following their public debuts and software outsourcing providers that faced concerns of a potential slump in overseas demand. (Read More)

The finalization of the basis of share allotment of KFin Technologies' initial public offering (IPO) is expected to take place on Monday, December 26, 2022, and if allotted, then the credit of shares to Demat account of bidders will be done on Wednesday, December 28, 2022.

The registrar for KFin Technologies IPO is Bigshare Services Pvt Ltd, therefore the allotment application can be checked on the registrar's website or on the BSE website. (Read More)

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The market sell-off on Friday was the consequence of the cumulative impact of Covid fears, valuation concerns and margin calls in many momentum stocks. It is important to note that the 320-point cut in Nifty was caused on a day when DIIs bought heavily for ₹ 3398 crores and FIIs sold only for ₹ 706 crores. This means the selling was triggered by HNIs and retail which, in turn, triggered margin calls in momentum stocks that led to steep cuts in these segments. Heavy FII selling in call options in the derivatives segment indicate that recovery will be slow and tough. Long-term investors can nibble at high-quality stocks in capital goods, telecom, banking and pharma.

KEC International (CMP 456): Considering strong revenue visibility backed by healthy order book, earnings momentum with higher margin from 4QFY23 onwards and likely improvement in return ratios, we have our BUY rating on the stock, with a Target Price of Rs521.

For today’s trade, long position can be initiated in the range of Rs324- 322 for the target of Rs334 with a strict stop loss of Rs319.

For today’s trade, long position can be initiated in the range of Rs1,597- 1,590 for the target of Rs1,626 with a strict stop loss of Rs1,579.

For today’s trade, long position can be initiated in the range of Rs1,223- 1,215 for the target of Rs1,259 with a strict stop loss of Rs1,202.

NSE continues to keep Indiabulls Housing Finance on the list of banned securities under the F&O segment for Monday trading as it has crossed 95% of the market-wide position limit. (Read More)

The Indian rupee and government bond yields are expected to trade in a narrow range amid thin volume this week, the last of 2022, due to the lack of major triggers, with the rupee also likely to continue to benefit from the central bank's support. Last week, the rupee ended little changed at 82.8575 per dollar. It has held a narrow range due to dollar sales near the 82.85-82.90 levels. 

Indian government bond yields, too, may remain largely rangebound in thin trading volume as the majority of market participants stay away near the end of the quarter, and year. (Read More)

Godrej Properties Limited has entered into a joint venture with Neelkamal Realtors Tower Private Limited (NRTPL) for the development of property situated in Mumbai. "The project is being developed by the Company through a Special Purpose Vehicle, viz, Godrej Residency Private Limited (GRPL)," the company told stock exchanges. As per the official statement, Godrej Properties Limited will hold "50.01% and the balance 49.99% will be held by NRTPL". (Read More)

In cryptocurrencies, Bitcoin price today gained with the world's largest and most popular digital token trading almost flat with a positive bias at $16,871. The global cryptocurrency market cap today remained below the $1 trillion mark, as it was almost flat in the last 24 hours to $847 billion, as per the data by CoinGecko.

On the other hand, Ether, the coin linked to the ethereum blockchain and the second-largest cryptocurrency, was almost flat at $1,220. Meanwhile, dogecoin price today was trading over at $0.07 whereas Shiba Inu was down at $0.000008. (Read More)

With state-owned CIL not buying out of any coal blocks abroad at present, a Parliamentary panel on Thursday said the PSU can still pursue the overseas acquisition of mines after a detailed study and analysis of the blocks, especially low ash coking coal.

The committee is of the view that this will not only reduce the import of fossil fuels but also open new avenues of mining abroad.

"Considering the existing coal resources in the country, the committee would like the coal ministry/CIL to explore acquisition of coal blocks abroad. They would like to be apprised of any developments in this regard," the Standing Committee on Coal, Mines and Steel in its report tabled in Parliament said. (PTI)

After the closure of three days subscription, all eyes are now set on the share allotment date. As per the tentative schedule of the public issue, the Elin Electronics IPO allotment date is most likely on 27th December 2022. However, ahead of the announcement of share allocation, the grey market is also dropping hints about the primary market sentiment in regard to the IPO (Initial Public Offering) worth ₹ 475 crore. According to market observers, shares of Elin Electronics are available at a premium of ₹ 5 in the grey market today. (Read More)

Advent International, a global private equity investor, has entered into a definitive agreement to acquire a significant stake in Suven Pharmaceuticals(“Suven Pharma" or “Suven") from the Jasti family, subject to regulatory approvals and conditions. Post the completion of the acquisition, Advent intends to explore the merger of its portfolio company, Cohance Lifesciences (“Cohance") with Suven, to build a leading end-to-end CDMO and merchant API player servicing the pharma and specialty chemical markets.

The merger will be evaluated by the board taking into consideration the strategic rationale and assertiveness to Suven’s public shareholders and will be subject to regulatory approvals and other customary approvals. (Read More)

Vaishali Parekh of Prabhudas Lilladher has recommended two stocks to buy today:

1] Ajanta Pharma: Buy at ₹ 1240, target ₹ 1268, stop loss ₹ 1224; and

Indices bounce back with Sensex gaining 700 pts, Nifty tops 18k; PSU Bank shines | Mint

School Furniture Bookcases 2] Brigade Enterprises: Buy at ₹ 471, target ₹ 485, stop loss ₹ 465. (Read More)