Share Market News Today | Sensex, Nifty, Share Prices Highlights: Bulls cruised on Dalal Street on Monday, forcing headline indices higher. S&P BSE Sensex was up 813.94 points or 1.42% to settle at 58,014 while NSE Nifty 50 added 237.9 points or 1.39% to close at 17,339. Bank Nifty soared 0.76% and broader markets mirrored the up-move. India VIX zoomed 6% and closed just shy of 22 levels. Tech Mahindra was the top gainer, up 4.88%, followed by Bajaj Finserv, Infosys, and State Bank of India. IndusInd Bank fell 3.5% as the worst Sensex performer, accompanied by Kotak Mahindra Bank, and Hindustan Unilever.
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Domestic benchmark indices were under the firm grip of bulls on Monday. S&P BSE Sensex closed 813.94 points or 1.42% higher to settle at 58,014 while NSE Nifty 50 added 237.9 points or 1.39% to end at 17,339. Tech Mahindra was the top gainer, up 4.88%, followed by Bajaj Finserv, Infosys, and State Bank of India. IndusInd Bank fell 3.5% as the worst Sensex performer, accompanied by Kotak Mahindra Bank, and Hindustan Unilever. Bank Nifty soared 0.76% and broader markets mirrored the up-move. India VIX zoomed 6% and closed just shy of 22 levels.
Tata Motors reported a net loss of Rs 1,451 crore in the October-December quarter. The auto giant had posted a profit of Rs 2,941 crore in the same period last year.
Nykaa stock’s recent correction has enticed foreign brokerage firm, Morgan Stanley, to go bullish on the scrip and upgrade it to ‘Overweight’. “We view FSN (Nykaa) as a consumer business with a technology edge. The recent stock correction gives a compelling entry point for long-term investors to play the theme of evolution in India's beauty market,” Morgan Stanley said in a note. Nykaa’s share price is down 20% year-to-date. While analysts have upgraded the stock, they have cut their target price from Rs 2,183 per share earlier to Rs 2,040, which still hints at an upside of 22% from today’s levels.
Sensex zoomed 813 points or 1.42% on Monday to close at 58,014 while NSE NIfty 50 closed 238 points or 1.39% higher at 17,339.
India VIX, the volatility gauge, of domestic markets was up 6% ahead of the closing bell. The index regained 22 levels.
“We continue to view Infosys as a key beneficiary of an acceleration in IT spends, given its capabilities around Cloud and Digital transformation, which was further reinforced by its 3QFY22 earnings. As Infosys has been outperforming TCS, we expect no valuation divergence between the two companies.”
TP : INR2,310
Google on Friday announced a $1 billion investment into telecom giant Bharti Airtel, picking up a 1.28% stake in the company. The internet giant’s massive investment is being seen as a positive for the telco as India gears up for the 5G era. “Airtel is already using Google’s 5G-ready Evolved Packet Core and Software Defined Network platforms. It now plans to explore scaling up deployment of Google’s network virtualization solutions to deliver a better network experience,” said analysts at Motilal Oswal in a note. The 5G era is expected to usher into India this year with the spectrum auction expected soon. Bharti Airtel shares were trading at Rs 729 per share on Monday, up 1.92%.
Sun Pharma reported a net profit of Rs 2,058.8 crore in the October-December quarter, up from Rs 1,852 crore in the same period last year. Sun Pharma shares up 1.38% on Monday trading at Rs 838 per share.
Sun Pharma on Monday announced an interim dividend of Rs 7 per share along with its quarterly results. The payment of the interim dividend would be made to the eligible shareholders on or before February 22.
“The upcoming budget could see investment in capital expenditure and further financial support to strengthen the recovery of the economy post the shock due to the pandemic. To encourage offshore funds onshore, the government must ensure that some of the conditions to be complied with under section 9A could be liberalised. For example, the requirement of monitoring resident Indian holding in the fund could be restricted to direct holdings. Further, the cap of resident Indian holding in the fund could be aligned to the limits prescribed under SEBI FPI Regulations,” said Anuja Bhargava, Head of General Counsel Shared Services, Fidelity International.
Bank Nifty soared 1% on Monday as bulls remained in control on Dalal Street. AU Small Finance Bank was up 4%, followed by State Bank of India.
Dalal Street was up near the day's high after the Finance Minister tabled the Economic Survey.
The initial public offering (IPO) of Adani Wilmar, the joint venture between Adani Group and Wilmar Group of Singapore, was subscribed 3.23 times on the final day of bidding, garnering bids for 39.59 crore equity shares against an offer size of 12.25 crore units. Qualified institutional investors put in bids for 1.87 times of the portion reserved for them. Retail investors' section was subscribed 2.93 times, while the portion set aside for non-institutional investors was booked 8.18 times.
Bharti Airtel today announced an agreement to acquire appx. 25% equity stake in Bengaluru-based technology startup, Lavelle Networks. The company specializes in Software-defined Wide Area Network solutions and it serves a range of industry segments.
Google's investment in Bharti Airtel is being seen as a positive by domestic brokerage firms. Reiterating their bullish outlook for Bharti Airtel, analysts said that Google's investment will likely aid the telco in the 5G battle.
Reliance Industries (RIL) share price jumped over 2 per cent on Monday to touch intraday high of Rs 2,386.95 after CLSA upgraded the rating and target price. The international research firm has upgraded Reliance Industries’ rating to ‘buy’ and has raised the target price to Rs 2,955 from Rs 2,850 earlier. “After a sharp fall, the company is now within 15 per cent of our conservative value. It’s at a good entry point to play its long-term promise across multiple big India themes,” the rating agency said in its note. RIL stock has risen over half a per cent in the last one month, and rallied over 25.73 per cent in the past year. Going forward, the stock may rally around 27%. Reliance Industries was quoting at Rs 2,378, up Rs 49.80, or 2.13 per cent, on the Bombay Stock Exchange.
Paytm shares have had an abysmal run on the stock exchanges since listing in November this year. After its recent downfall, analysts at Goldman Sachs have now trimmed their target price for the fintech giant. However, the new target price still presents a strong 74% upside potential for the stock battered on Dalal Street. Currently Paytm stock trades at Rs 918 per share, down 57% from the IPO price of Rs 2,150 apiece. Paytm has garnered bullish outlooks from Morgan Stanley and JP Morgan, while bearish view from Macquarie. Goldman Sachs has initiated the coverage of Paytm in December last year.
Nifty Private Bank index was in the red on Monday while all other NSE sectoral indices were up in the green.
The Union Budget 2021 was a hallmark event, and all eyes were glued to it as it was the budget after the first COVID-19 wave created havoc in the Indian economy. The Finance Minister Nirmala Sitharaman had the daunting task of reviving economic growth along with keeping a check on deficits. That being said, with direct tax collection of Rs 9.5 lakh crores and GST collections of Rs 10.7 lakh crores till December 2021, this is one of those rare years for the Indian economy where our fiscal deficit situation is better than estimated. All these stats have now set the stage for the Union Budget 2022 amid the Omicron wave!
The 680 crore IPO of AGS Transact Technologies was open for subscription from 19th January’22 to 21st January’22 and shares were offered in the price range of Rs 166-175 per equity share. Company saw a flat listing at Rs. 175 per equity share due to dicey market sentiments and weak financials. The grey market premium was also around 10% on the last day of IPO.
Company is one of the leading payment solution provider and a big player in ATM management space with strong clientele and good network all over India with many peers and high competition. We advise investors to hold the company for long term for good returns seeing company’s product portfolio and technological capacities we think it will be a good investment option for long term.
~Mohit Nigam, Head – PMS, Hem Securities on AGS listing
India VIX, the volatility index, was up 5.13% on Monday morning sitting at 21.76 levels.
Paytm target price has been trimmed to Rs 1,600 per share from Rs 1,630 earlier. The foreign brokerage firm has a 'Neutral' rating on the scrip.
~ ICICI Direct
The upcoming semi-annual changes to the NIFTY 50 index could see Apollo Hospitals replace Indian Oil Corporation. The changes will be announced in February 2022 and the changes shall come into effect from March 31, 2022. ICICI Direct estimates buying worth Rs 945 core for Nifty 50 ETFs and selling worth Rs 683 crore.
AGS Transact Technologies shares made a flat listing on exchanges on 31 January 2022, as stocks opened 0.57% up at Rs 176 apiece from issue price at Rs 175 per share. At listing, the market capitalisation of the company stood at Rs 2,118.91 crore, according to BSE. This is the first company to list on bourses in calendar year 2022. AGS Transact Technologies’ Rs 680-crore IPO was subscribed 7.79 times. The public issue of AGS Transact Technologies was entirely an offer for sale (OFS) by existing shareholders of the company, including the Promoter of the company Ravi B Goyal.
Key thing to monitor in the next week is that Nifty holding above 16800 post the Union Budget 2022 amid oversold conditions would open the doors for a technical pullback towards 17600.
Our key observations are as follows: a) Time-wise, since May 2020 index has not closed negative for more than two successive weeks. With two weeks of losses behind us, index is poised for a technical pullback b) Despite elevated global volatility, Nifty managed to hold the key support of 16800 c) The Bank Nifty has been outperforming the benchmark Nifty since the beginning of this year and also within the ongoing corrective phase. A revived traction in banking stock would drive Nifty higher as Bank Nifty carries 36% weightage in Nifty.
~ ICICI Direct
Nifty witnessed a sharp correction in the last two weeks along with some short rollovers from the January series. Uncertainties in the global market along with higher volatility ahead of the Union Budget 2022 have kept the index quite turbulent in the last couple of weeks. However, the index took support around 78.6% retracement level, which is placed around 16825, in last week and rebounded piercingly. FIIs have been sharp sellers of equities in January. While their Long Short Ratio in index future has reached 28%, which is the lowest since May 2020. Overall, FIIs took short bets ahead of the budget. At the same time, DIIs are continuously pumping money in our markets and helping the index to find its ground.
Nifty finds support around 17000 while 17500 will act as resistance on the upside. Bank Nifty finds support around 37450 while 38750 will act as resistance.
~ IIFL Securities
Sensex rallies 700 points on opening bell, nears 57,900. Nifty was up 200 points, breaching 17,300. India VIX was up 5%.
Going ahead, we expect volatility to remain elevated ahead of the Union Budget. Thus, the key thing to monitor in the next week is that, Nifty holding above 16800 post Union Budget 2022 amid oversold conditions would open the doors for technical pullback towards 17600. The low open interest seen in the January series inception continued in the February series as well. The new series has started with just over 1 crore shares. Meanwhile, significant closure of long positions was seen from FIIs indicating ongoing profit booking. Hence fresh accumulation in the index futures may lead to a fresh directional move.A fresh directional bias is likely to be seen post the Union Budget.
For the coming session, the trading spot band is between 17040 and 17400,which means further upsides are likely once the immediate resistances of 17400 are taken out and weakness could emerge if the supports of 17040 are broken.
~ Raushan Kumar, Derivative Analyst
Sensex rallies in pre-open session, breaches 58,000. Nifty regains 17,200.
A bear tightens its grip for the second consecutive week closed almost three percent down in the current week and lost more than six percent in the last two weeks. From the last three trading days, prices have successfully sustained below their 100-day exponential moving average and also closed below it’s all the medium averages on the daily interval, which is a negative sign for the index.
Considering lower-than-expected subscription demands (QIB: 2.26x/ NII: 25x/ Retail: 3x) to its initial public offering (IPO), we expect muted or discount listing show in the volatile markets. We believe the reason for low demand would be on investors’ concern over 100% OFS offer followed by denting selloff sentiments in the recently listed IPO like PayTM, Policybazaar, Shriram Properties and RateGain which failed to perform on the listing day. We also see a few more concerning points like losses on books incurred in the last five months of FY22 and a flat growth in topline which is not giving enough room for any listing gains. Based on financial parameters, the issue was fully priced leaving nothing on table to new investors.
~ Prashanth Tapse, Vice President (Research) at Mehta Equities
Nifty started the week on a flat note and continued its previous week’s bearish momentum throughout the week. Nifty closed at 17102 with a loss of 515 points on a weekly basis. On the weekly chart, the index has formed a long bearish candle forming lower High-Low compared to previous week indicating weakness at current levels. Since the past 3-5 months index is consolidating within 18400-16800 levels indicating short term consolidation. Hence any either side breakout will indicate further direction. The chart pattern suggests that if Nifty crosses and sustains above 17400 level it would witness buying which would lead the index towards 17600-18000 levels. However if index breaks below 17000 level it would witness selling which would take the index towards 16800-16400. Nifty is trading below 20 and 50 day SMA which are important short term moving averages, indicating negative bias in the short to medium term.
We believe the Union Budget would set the tone for the domestic markets amid the global sell-off. Volatility remains high during the budget week so participants should continue with a cautious stance and prefer hedged positions. We expect the Nifty index to hover in a broader range of 16,600-17,600 and either side decisive break would trigger the next directional move.
~ Ajit Mishra, VP Research. Religare Broking
Indian equity markets are staring at a gap up start on Monday as early trends on SGX hinted at a positive start for benchmark indices Sensex and Nifty 50. The Nifty futures were trading with a gain of 146.50 points or 0.86 per cent at 17,238.50 level on the Singaporean Exchange. “Equity markets have been witnessing increase volatility over the last few days. While the US Fed outcome is now behind, several other factors including ongoing result season, Union Budget on Feb 1st and Russia-Ukraine conflicts would keep the market volatility high in coming week as well. Expectations are running high from the government to present a progressive budget which can revive economic growth. However, given the various state election, risk of a populist Budget cannot be ruled out completely. Capital Goods, Infra, housing, Real Estate, PSU Banks, etc are some of the sectors that would remain in focus ahead of the Budget, said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.