Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 plunged nearly 2 per cent on Monday. BSE Sensex fell 1024 points or 1.73 per cent to end at 57,621, while the Nifty 50 index plunged 1.73 per cent or 303 points to finish trade at 17213. L&T, HDFC Bank, Bajaj Finance, Housing Development Finance Corporation (HDFC), Bajaj Finserv, Kotak Mahindra Bank, Titan Company, ICICI Bank were among top index draggers. On the flip side, stocks of Power Grid Corporation of India, NTPC, Tata Steel, State Bank of India (SBI), and UltraTech Cement were the Sensex gainers. Bank Nifty fell over 2 per cent on Monday. While Nifty Financial Services, Nifty FMCG, and Nifty Private Bank indices lost over 2 per cent.
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Manyvar’s parent company Vedant Fashions’ IPO has been subscribed 0.20 times so far on the second day of sale with retail investors subscribing to the issue in the highest numbers so far. In the grey market, Vedant Fashions public issue is trading at a soft premium of just Rs 16 per share down from Rs 40 earlier last week. Shares of Vedant Fashions have been offered to investors in the fixed price band of Rs 824-866 per share. The Rs 3,149 crore IPO of Vedant Fashions is entirely an Offer for Sale (OFS) by existing shareholders of the company, including the promoters. The issue will remain open for subscription till tomorrow evening.
BSE Sensex fell 1024 points or 1.73 per cent to end at 57,621, while the Nifty 50 index plunged 1.73 per cent or 303 points to finish trade at 17213.
Bulls believe that India is on the cusp of a new growth and earnings cycle. If this happens valuations are likely to be sustained at higher than historical levels. If the benchmark indexes remain range bound while earnings grow, valuations will come down. The first 8 months of FY22 witnessed 22 million new Demat accounts getting opened in India. Low interest rates, ease of opening accounts and more time to trade thanks to WFH, have combined to create a strong individual investor base in India. FIIs sold equity worth Rs 114103 cr in India since October 2021. All this selling has been absorbed by individual investors plus DIIs. Therefore, markets are resilient even in the midst of strong headwinds. VK VIjayakumar, Chief Investment Strategist at Geojit Financial Services
Market cap to GDP ratio, which Warren Buffet regards as the most important indicator of valuation, is excessive in India. If we take other indicators of valuation like PE ratio, Price to Book and Dividend yield, then also valuations are high. At high valuations the market is vulnerable to corrections. The sharp rise in the 10-year bond yield in the US on inflation concerns can trigger a correction. Brent crude at $ 93 is another strong headwind. 10 percent correction can be expected from the present levels. However, exuberant individual investor participation - both retail and HNIs- is a new phenomenon in the Indian market now. DIIs also are flush with funds. This segment has the risk appetite and money to buy the dips. Therefore, corrections need not be as sharp as expected. VK VIjayakumar, Chief Investment Strategist at Geojit Financial Services
"Nifty 120 points recovered from 17,120 although it seems like merely a bounceback. Over to Global markets for tomorrow. Better to stay Light," said Rahul Sharma, Director & Head - Technical, JM Financial.
Adani Wilmar, whose IPO got 17 times subscription, is scheduled to make its stock market debut on Tuesday, 8 February 2022. Owing to the global sell-off and dampened sentiments in the primary market, the IPO received a moderate response. In the primary market, Adani Wilmar shares were quoting at a premium of 11 per cent over the issue price of Rs 230 per share, according to the people who deal in unlisted shares of the companies. Analysts expect Adani Wilmar IPO shares listing at a premium of 20 per cent over issue price.
The IPO of Adani Wilmar got decent subscriptions as the company is a leader in branded edible oils and packaged foods in India. The IPO is priced at a P/BV of 7x on a NAV of 28.86 and PE of 36x on its FY21 earnings which are slightly lower than its listed peers. The current market scenario is choppy but we can expect a listing gain of 10-15% based on GMP. The current GMP is Rs 24 indicating a listing of around 254 which is about 10% higher than the issue price. Parth Nyati, Founder, Tradingo
India VIX, the volatility index, rallied over 8 per cent to 20.49 levels
Bank Nifty fell nearly 2% to 38,044 in the afternoon deals as bears tookover the D-Street
HDFC Bank, Infosys, Housing Development Finance Corporation, ICICI Bank contributed the most to indices falls
BSE Sensex crashed 1200 points to 57,454, while Nifty 50 index tanked to day's low of 17179
With the economy still in the recovery mode with the pandemic continuing to disrupt the recovery process, the MPC is expected to keep the policy rates stable at current levels in its upcoming meeting, to be announced on 10 February, despite the persistence of higher inflation. However, there is limited scope for MPC to continue with the current policy stance for long, as supply chain disruption, elevated level of borrowing shown in the budget and rising crude oil prices amid excess liquidity may exert pressure on inflation. Brickwork Ratings
BSE Sensex and Nifty 50 were trading 1.4 per cent down on Monday, dragged by losses HDFC Bank, Housing Development Finance Corporation (HDFC), ICICI Bank, Infosys, and L&T, among others. So far in the trade, the 30-stock index hit a day’s low of 57,806, while Nifty 50 touched a day’s low of 17,266. Despite this, State Bank of India (SBI) share price hit a fresh 52-week high of Rs 549.05 apiece, surpassing its previous high of Rs 546.35 apiece. While no stock hit a 52-week low on S&P BSE Sensex so far on Monday.
"Nifty has broken 17,300 & Budget Day low. Next Major support at 17,120. Avoid catching a falling knife," said Rahul Sharma, Director & Head - Research JM Financial.
Adani Wilmar IPO is priced at a P/BV of 7x and PE of 36x on its FY21 earnings which are slightly lower than its listed peers. Along with this, the company reported tremendous growth over the past few years. Based on this we recommend investors stay invested for gains in the long term. Adani Wilmar got a decent response from the market getting subscribed 17.37 times. We expect the shares to list at a premium of 15% to 20% of the offer price based on the current GMP of Rs 28 which is 13% higher than its price band. Aayush Agrawal, Senior Analyst, Swastika Investmart
Paytm stock has been upgraded to a ‘Buy’ rating by analysts at Goldman Sachs days after the company reported its quarterly results. Paytm reported an 88% increase in consolidated revenue from operations to Rs 1,456 crore while net loss widened to Rs 778 crore during the October-December quarter. The stock fell to less than half of its IPO price of Rs 2,150 per share and now trades at Rs 945 per share. The sharp fall in the stock price has made analysts believe that the risk-reward ratio is favorable. However, Goldman Sachs and Morgan Stanley have both trimmed their target prices for the scrip.
Shares of InterGlobe Aviation, the parent of IndiGo, zoomed over 9 per cent after the firm posted a profit after tax of Rs 129.8 crore in the three months ended December 2021.
Paytm share price has been upgraded to ‘Buy’ rating by analysts at Goldman Sachs days after the company reported its quarterly results. Paytm reported an 88% increase in consolidated revenue from operations to Rs 1,456 crore while net loss increased to Rs 778 crore during the October-December quarter. The stock has dived significantly from its IPO price of Rs 2,150 per share and now trades at Rs 945 per share. The sharp fall in the stock price has made analysts believe that the risk-reward ratio is favourable. However, Goldman Sachs and Morgan Stanley have both trimmed their target prices for the scrip.
State Bank of India (SBI) hit a fresh its 52-week high at Rs 549.05 apiece on Monday, after the bank reported highest quarterly net profit of Rs 8,432 crore, a surge of over 62% as compared to the corresponding quarter of the previous year. It has surpassed its previous high of Rs 546.35, touched on 4th February. Most brokerage firms have recommended to buy SBI shares, and forecast a potential upside of up to 37 per cent, at Rs 725 apiece. So far in the year, SBI stock has soared 16 per cent, while 26 per cent in the last six months.
Last week we have seen a sharp rally in Gold due to inflation and geopolitical tension. It was increased by 0.71% and touched high of 48127 levels. In international Market it touch $1808 per ounce level yesterday. We are recommending buy in gold at 47900 to 48000 levels with the stoploss of 47750 levels for the target of 48700 levels. In international market it may test $1830 levels very soon. Geopolitical tension and inflation due to higer crude oil prices may support yellow metal as safe haven demand. Anuj Gupta, VP, IIFL Securities
Oil marketing companies (OMC) such as Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited reported weaker than expected profits in the October-December period but analysts at HSBC remain bullish on the stocks citing strong fundamentals. “OMCs’ profitability negatively surprised due to inventory losses driven by a cut in excise duty, the impact of which on existing inventory had to be borne by the companies,” HSBC said in a report. However, analysts added that with economic recovery picking up demand for petroleum products has been improving leading to better margins for OMCs.
After 950 points rally in just five sessions, the index underwent minor profit booking. We believe, temporary breather will make market healthy and pave the way to gradually head towards 17900 in February as it is 80% retracement of January 2022 decline (18350-16836).From a data perspective, the Nifty holds highest Put concentration at ATM 17500 strike while Call option concentration is placed at17800 strike for the coming weekly settlement. Call options concentration is much higher than the Put for the coming week suggesting limited upsides. We expect the Nifty to consolidate for sometime after witnessing significant volatility in the last one month
For the coming session, the trading spot band is between 17430 and 17650,which means further upsides are likely once the immediate resistances of 17650 are taken out and weakness could emerge if the supports of 17430 are broken.
~ Raushan Kumar, Derivative Analyst, IIFL Securities
State Bank of India (SBI) share price was ruling near 52-week high at Rs 534, gaining 0.7 per cent post Q3 results. Most of brokerages have recommended to buy SBI stock and see up to 40 per cent rally.
Barring Nifty FMCG, Nifty IT, and Nifty Metal, all the sectoral indices were in the positive territory. Bank Nifty was down over half a per cent.
Infosys, Kotak Mahindra Bank, HDFC Bank, IndusInd Bank, Tata Steel, HCL Tech were top Sensex laggards
Dr. Reddy's, Mahindra and Mahindra (M&M), Titan Company, State Bank of India (SBI), Nestle India, Axis Bank were top BSE Sensex gainers
Dr. Reddy's Laboratories share price soared nearly 6 per cent to Rs 4,600 on Monday
We expect gold prices to trade sideways to up in the coming week with COMEX spot gold resistance at $1830 per ounce and support at $1780 per ounce. At MCX, Gold April prices have near term resistance at Rs. 48500 per 10 grams and support at Rs. 47400 per 10 gram. COMEX Spot silver has near term resistance at $23.60 per ounce with support at $21.40 per ounce. MCX Silver March has important resistance at Rs. 63800 per KG and support at Rs. 59200 per KG.
BSE Sensex was down 100 points to 58,549.67, while Nifty 50 index gave up 17500 level in opening trade on Monday
BSE Sensex fell 150 points to 58,491, while Nifty 50 index gave up 17500 level to rule at 17465 in the pre-opening session on Monday