Volatility inched up on Monday to cross 22 levels.Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic equity benchmark indices surged to fresh all-time highs on Monday, yet again. S&P BSE Sensex closed 486 points higher at 49,269, the 50-stock NSE Nifty index ended at 14,484. Broader markets underperformed the benchmark indices with mid and smallcap ended the day in red. HCL Technologies, Infosys, were the top gainers, surging 6% and 5%, respectively. Nifty Bank, Nifty Media, Nifty Metal, Nifty PSU Bank and Nifty private bank index ended in red.
Earning of India’s leading companies are looking to bounce back strongly in the third quarter after the coronavirus-induced hit that they suffered in the initial months of this fiscal year. IT major TCS has reported strong on-year growth in net profit while Radhakishan Damani’s Avenue Supermarts said its net profit grew 16% on-year basis. Business activity has been picking up and the October-December earnings are expected to be better with pent-up demand and festive demand collectively boosting figures for India Inc.
Highlights
Sensex and Nifty once again soared to fresh all-time highs on Monday, beginning the week on a positive note. S&P BSE Sensex ended at 49,269, up 486 points while the Nifty 50 index closed at 14,484. IT majors like HCL Technologies and Infosys surged 6% and 5%, respectively, making them the top index gains. Volatility surged more than 8% to sit above 22 levels. Broader markets underperformed benchmarks while midcap and smallcap indices ended the day in the red. Bajaj Finserv, Bajaj Finance, and Reliance Industries were the top drags on Sensex today.
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Kotak Mahindra Asset Management Company Limited (Kotak Mutual Fund) today announced the launch of Kotak NASDAQ 100 Fund of Fund. The New Fund Offer opens for subscription from 11th January 2021 to 25th January 2021. Kotak Nasdaq 100 Fund of Fund will invest in units of overseas ETFs and or funds like iShares NASDAQ 100 ETF, Lyxor NASDAQ 100 ETF and USA NASDAQ 100 Index fund (as per Scheme Information Document, i.e. SID), which in turn invest in shares listed on the NASDAQ-100, currently worth 15 trillion USD.
Sensex and Nifty surged to hit their fresh all-time highs on Monday and yet again closed at their highest ever closing levels. Sensex breached 49,250 on closing while Nifty crosses 14,450.
State-run engineering firm BHEL on Monday said it has bagged an order worth Rs 450 crore for a steam and power plant from National Aluminium Corporation Limited (NALCO). The Rs 450 crore order has been placed on BHEL by NALCO for its 5th Stream Alumina Refinery Expansion Project at Damanjodi, Odisha, Bharat Heavy Electricals Limited (BHEL) said in a statement.
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Sensex reached a fresh all-time high of 49,296 just ahead of the closing bell while the 50-stock NSE Nifty touched 14,491 as the benchmarks continued to climb higher.
Shares of HCL Technologies jumped 6% on Monday to trade at Rs 1,055 per share as investors rushed to the IT major ahead of the quarterly results.
Broader markets were underperforming the benchmark indices just minutes ahead of the closing bell. Midcap and Smallcap indices were trading with losses.
Tata Motors share price jumped 10% to hit the upper circuit on Monday as it traded at a high of Rs 217.5 per share. Less than an hour to go till the closing bell, the stock is up over 9%.
Segments like regional markets, manufacturing and communications, which did not fully recover in Sep’20, led Q3 growth. Near- term growth (H1CY21) will be optically strong, courtesy - 1) low base effect (prior 2 years), and 2) ramp-up of captive / large deals. However, as focus shifts from ‘recovery’ to ‘growth’, steady-state growth (Sep-21++) will be the key monitorable. Reversal of some Covid-led savings, large deal ramp-ups and weaker USD can upset street expectation of further margin expansion. Despite decelerating growth and stable return ratios, near-zero interest rates / liquidity led to expanding multiples over FY10-FY20. Covid gave a further impetus to valuations v/s business case of the sector. However, this time, both the pace and quantum of TCS’ multiple expansion (~45%, LTM) is unprecedented and alarming – both on absolute and relative basis. In conjunction with earlier highlighted sector risks we downgrade the stock to ADD
~ ICICI Securities on TCS
Indian share markets hit fresh record high yet again, with BSE Sensex ruling above 49,200 for the first time ever. The broader Nifty 50 index topped the crucial 14,450 level in today’s upbeat trade. Domestic research and brokerage firm IIFL Securities has picked five large-cap stocks which have the potential to offer decent gains in the year 2021 on the back of rich valuations. The brokerage firm said that valuations are 40 per cent richer than last year, following a major two-month rally which saw participation from almost every sector.
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"Due to profit booking, Burger Kings hit a lower circuit of 10%. Stock has corrected 30% from it's all time high. Even after such a big correction, stock is offering 150% return from its issue price. In the short term, we expect profit booking to continue and stock to correct more from current level as anchor investors 30 day lock in period from the date of allotment is over. In the last ~6 years of operations in India, the company has opened 268 stores. Looking at the current run rate, we believe management will be able to achieve the target of 700 stores by Dec’26. As the store count will increase, operating leverage will kick in and the company will report better margins. We believe there is ample scope available for the company to increase its business in India. Long term prospects of the company are promising," said Keshav Lahoti Associate Equity Analyst, Angel Broking.
Anil Agarwal-led Vedanta Ltd saw its share price tumble 3.3% to trade at Rs 176 apiece days after the promoter group announced an open offer to increase its stake by 10% in the commodities giant. Promoter Vedanta Resources Ltd informed bourses on Saturday of a voluntary open offer for the acquisition of up to 37.17 crore equity shares together with Twin Star Holdings Ltd, Vedanta Holdings Mauritius Ltd, and Vedanta Holdings Mauritius II Ltd -- all indirect subsidiaries of Vedanta Resources. However, the offer price of Rs 160 per share, at a discount to the current market price, has been termed as ‘poor’.
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"Oil markets are experiencing a case of the "Hebei Jeebies" as new Coronavirus cases on mainland China double. We've morphed from a profit-taking sell-off to some weaker long's hands getting stopped as stronger US dollar is compounding matters and offering up zero support for commodity prices," said Stephen Innes, Chief Global Market Strategist at Axi.
'Last week gold prices corrected sharply by 2.54% and closed at 48967 levels. Silver prices were also corrected by 5.71% and closed at 64231 levels. Strength in Dollar index and bond yield pressurize the gold and silver prices. However last Friday in the monthly U.S. employment report showed a loss of 140,000 jobs in December the first negative growth of its kind since April and with a record of 2,667 Americans dying a day on the average from the coronavirus since the start of 2021," said Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking.
IT majors Infosys and HCL Technologies are top gainers on Sensex at this hour. Both the stock have continued to inch higher and are now up 4% and 3%, respectively.
Radhakishan Damani’s Avenue Supermarts saw its share price surge to a fresh all-time high of Rs 3,130 per share on Monday morning as investors reacted to the strong earning growth of the firm. Avenue Supermarts, which own and operates the supermarket chain DMart, on Saturday, reported a 16.3% on-year jump in net profit to Rs 446.95 crore for the October-December quarter of the current fiscal year. This strong growth in profits was aided by an 11% jump in revenue for the firm as consumption picked up with India moving away from lockdowns as it looked to control the spread of the coronavirus.
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"Frenzied buying (FII's bought Rs 6029 cr last Friday) is taking the markets to unchartered territory. Trend prediction has become extremely difficult. Market is in over - bought zone and there is no valuation comfort in the market. Market consensus that liquidity will remain abundant and interest rates low is driving the market. Risk is the consensus going wrong. TCS results & management commentary are very positive and indicate the improving prospects for the sector. But most positives are in the price," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Tata Consultancy Services (TCS) share price jumped 3.5 per cent to hit a fresh 52-week high of Rs 3,230 apiece on BSE today, following better-than-expected October-December quarter results for the fiscal. The IT major reported 7.17 per cent on-year rise in the consolidated net profit to Rs 8,727 crore, as compared to Rs 7,504 crore in the July-September quarter. Nifty IT index too topped 26,800 points, rising 2.5 per cent in the opening deals.
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We have achieved our next level of target and resistance which is 14450. If we can keep above this, the next target should be 14600. Since we are in unchartered territory, the target levels are getting smaller. We have a new support for the Nifty between 14200-14250. Intraday dips can be utilised to enter the index for higher targets. Stops must be placed and strict caution should be practised: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
In what was a controversial week in the United States of America on the political front, Wall Street was also in for something that has been rare for equity markets. The top five big tech companies on Wall Street, collectively known as FAANG, underperformed the benchmark index -- NASDAQ. While the equity index gained 1.8% during the last five trading sessions, most of the FAANG stocks witnessed losses in the same time period. On the other hand, leading electric vehicle manufacturer Tesla’s stock price jumped over 20%, helping Elon Musk become the world’s richest person beating Amazon’s Jeff Bezos.
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"We have achieved our next level of target and resistance which is 14450. If we can keep above this, the next target should be 14600. Since we are in unchartered territory, the target levels are getting smaller. We have new support for the Nifty between 14200-14250. Intraday dips can be utilized to enter the index for higher targets. Stops must be placed and strict caution should be practiced," Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
The USDINR pair is finding crucial resistance around 73.55-60 levels and reverses and its momentum towards 73.10-15 levels. Either side breakout will decide further trend for this week. Overall, daily chart suggests that 72.90 is likely to remain strong support and 74.00 is likely to remain short term resistance. It is advisable to sell on upticks close to 73.50 levels and if it breaches that then one can look for selling around 73.90-74.00 levels. Levels near 73.15 is advisable for buying the near term exposures: Amit Pabari, managing director, CR Forex Advisors
Commodity prices traded volatile during the previous week with bullion prices witnessing sharp correction from recent highs while Crude oil and base metals extended weekly gains. The dollar index re-gained above 90 territory and ended 0.18% higher for the week with a rise in US treasury yields.
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Sensex, Nifty began trading at their respective all-time highs on Monday morning. Sensex breached 49,200 for the first time in history while Nifty crosses 14,400.
While Nifty 50 gave up 14,500 during the pre-open session on Monday, Sensex was seen inching higher and now crossing 49,200.
NSE will introduce Futures & Options contracts for Nifty Financial Services Index from today. The index includes leading banks, insurance, housing finance, and NBFC among other financial services firms. NSE will not charge exchange transaction charge for Nifty Financial Services for the first six months.
Sensex jumped to cross 49,000 during the pre-open session on Monday morning. Nifty 50 gained to cross the 14,500 levels.
USDINR Jan Future gives successful closing above short resistance level of 73.70 then we can see short term price reversal movement which will push the price towards 74.20levels. FX Reserves declined by $290 million after touching lifetime high $581.3 Billion. RBI is in action and absorbed the inflows of dollar, suggesting positivity as aggressive reserve is helpful to uplift local economic activity as they have bought around $ 13 billion from the market which will help to price reversal from lower levels. Monthly PCR is rising at 0.32 indicating the call option of USDINR in demand and it takes higher prices in the coming week: Kshitij Purohit, Lead Currency & Commodities at CapitalVia Global Research Limited- Investment Advisor
BSE Sensex and Nifty 50 were likely to open flat on Monday, as suggested by trends in SGX Nifty. Nifty futures were trading flat at 14,448 on Singaporean Exchange. Last week, BSE Sensex rallied 913.53 points or 1.90 per cent, while the Nifty soared 328.75 points or 2.34 per cent. Investors will first react to the TCS numbers which came after the market hours on Friday.
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Call OI is the most at 14000 strike with 18.61 lakh contracts, followed by 15000 strike with 14.93 lakh contracts. Put OI is maximum at 14000 strike with 24.24 lakh contracts.
TCS: TCS reported 7.17 per cent on-year rise in the consolidated net profit to Rs 8,727 crore for the third quarter ended December 31, 2020. Tata Steel: Tata Steel India reported a 3% year-on-year growth in its crude steel production at 4.60 million tonne for the third quarter of the current fiscal.
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Domestic crude oil production has fallen by 6% over the April-November period compared with 5.9% de-growth during 8M-FY20. India imported 3.7 mb/d of crude oil during 8M-FY21 compared with 4.5 mb/d during 8M-FY20.
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Notwithstanding the disruption caused by the pandemic, Indian consumer internet companies continued to win the support of investors in 2020, raising a little over $8 billion, data sourced from market research firm Tracxn showed. Companies had attracted investments worth about $11.21 billion in 2019.
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SGX Nifty was trading 72.5 points or 0.50% higher on Monday morning. This surge in SGX Nifty hinted at a gap-up start for domestic benchmark indices.
Driven by festive fervour, pent-up demand, sharp cost cuts and regulatory breaks, corporate earnings for the three months to December 2020 are expected to rebound smartly. With very little of the country now under a lockdown and business activity picking up nicely, companies, across the board, should report good revenue growth, better than in Q1 and Q2FY21. Sectors such as capital goods are expected to have seen a rebound in order inflows and also execution.
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