Aurobindo Pharma launches Molnupiravir brand Molnaflu in India
Aurobindo Pharma shares moved within a tight range around the flatline. At 11:35 am, the stock was down 0.1 percent at Rs 719.9 apiece on BSE.
RBL Bank shares rise over 2%
RBL Bank shares were up 2.1 percent at Rs 135.5 apiece in late morning deals on BSE. Earlier in the day, the stock rose as much as 2.5 percent to Rs 136.1 apiece.
RBL Bank gross advances up 5%
RBL Bank said its gross advances as of December 31 stood at Rs 59,941 crore, up five percent compared with the corresponding period a year ago. Its gross advances were up 3.46 percent sequentially. They had stood at Rs 57,939 crore as of September 30.
–Wholesale at 47 percent vs 45 percent QoQ (wholesale loan growth at eight percent QoQ)
–Retail at 53 percent vs 55 percent QoQ (retail book flat QoQ)
–Cash deposit ratio improves by 475 bps to 81.4 percent vs 76.65 percent QoQ (this could keep NIM stable or improve it)
UPL rises 2%; CLSA raises target price, EPS estimate
UPL shares rose more than two percent after CLSA raised its target price for the stock to Rs 1,100 from Rs 1,060. The brokerage also raised its EPS estimate for UPL for FY22-24 by 2-3 percent to factor in spot currency assumptions.
CLSA maintained its ‘buy’ rating for UPL.
Ventura Securities initiates coverage on Salzer Electronics with ‘buy’ rating
The brokerage has assigned a target price of Rs 388 per share to the stock for the next 24 months. Ventura expects SALZER’s revenue to grow at a CAGR of 21.2 percent, EBITDA at 24.1 percent and net earnings at 38.4 percent over the the period of FY21-24E. It sees Salzer Electronics’ EBITDA and net margins improving by 76bps to 11 percent and by 168 bps to 5.1 percent respectively.
Salzer Electronics shares were up 1.6 percent at Rs 197.7 apiece on BSE in late morning deals.
Buy L&T, SBI, Ambuja Cements: Ashish Chaturmohta
Here are three trading calls from Ashish Chaturmohta, Director Research at Sanctum Wealth Management:
–Buy Larsen & Toubro for a target price of Rs 2,030-2,050 with a stop loss at Rs 1,920
–Buy SBI for a target of Rs 515 with a stop loss at Rs 484
–Buy Ambuja Cements for a target of Rs 405-408 with a stop loss at Rs 388
L&T Construction wins orders in Range of Rs 2,500-5,000 crore
L&T Construction said its water and effluent treatment business secured a slew of large orders from clients.
The company classifies orders to the tune of Rs 2,500-5,000 crore as large.
L&T shares were down 1.1 percent at Rs 1,927 apiece on BSE.
Buy Sumitomo Chemicals, sell Adani Ports: Shrikant Chouhan
Here are two trading calls from Shrikant Chouhan of Kotak Securities:
–Buy Sumitomo Chemicals for a target price of Rs 450-460 with a stop loss at Rs 390
–Sell Adani Ports for a target of Rs 720 with a stop loss at Rs 745
Market gung ho about Bajaj Finance business transformation: Mehraboon J Irani
Market expert Mehraboon J Irani The transformation which they are doing with their business, I think is another thing which the market is very gung ho about.
“A lot of people had questioned valuations of Bajaj Finance including me at some point. But somewhere I have accepted the fact that here is a management which nine out of 10 analysts on the Street will rate possibly as among the best in the country… very proactive. Now, if we start arguing that is that reason enough for the valuation, which is absolutely lofty, what is there for me to make money from? The point is that you are a company that understands most nuances as far as the finance sector goes,” he said.
“They don’t want to bank as of now, maybe one fine day they will do it also… This company has always been a front runner in all the segments in which it is. The market rates it highly and I would say that 20 percent of the premium valuation, which it is getting is mainly because of the way the management has communicated to the shareholders to stakeholders as well as to the analyst community,” he added.
Positive on banking space: Mehraboon J Irani
Market expert Mehraboon J Irani is positive on the banking space, followed by capital goods. “I feel the capex cycle is taking off. We are seeing banks like HDFC Bank and Federal Bank coming up with credit growth in double digits after a long period of time. The deposit growth is nearly 15-18 percent, which is very high. So if we have an interest rate hike coming, which I believe will come, I think it is going to be positive for banks. If the credit cycle is taking off, it is again positive for banks,” he said.
Market trajectory to remain positive unless Nifty50 breaks 17,200 on closing basis: Manish Hathiramani
Manish Hathiramani, Proprietary Index Trader and Technical Analyst at Deen Dayal Investments, believes the reaction from resistance at 17,800-17,950 levels does not mean the end of the current trend.
“The trajectory will continue to be positive as long as 17,200 is not broken on a closing basis. Bottom picking or accumulation is always a strategy that can be adopted. However, I am of the opinion that unless we do not close above 17,950, the next leg of this rally will not commence,” he said.
Bond Market Deals | Shriram Transport Finance, Indian Oil, Bajaj Finance in focus today
–Shriram Transport Finance has raised the size of its dollar bond issue to $3.5 billion.
–IOC will raise funds through intra-month commercial papers at 3.4 percent and 3.43 percent coupons.
–Bajaj Finance will raise funds through a three-month commercial paper at a 4.05 percent coupon. (Catch the complete list of key bond deals today)
Took price hikes of 5-6% in last quarter, will see more hikes if raw material prices rise further: Parle Products’ Mayank Shah
Mayank Shah of Parle Products said in an interaction with CNBC-TV18 the company took price hikes to the tune of 5-6 percent in the last quarter. Parle will see more price hikes if raw material prices continue to rise, he said.
Parle has seen tapering off in rural growth, he said.
Abneesh Roy of Edelweiss told CNBC-TV18 he expects rural volume de-growth for many companies in the December and March quarters.
Parle Industries shares were down 0.3 percent at Rs 9.8 apiece on BSE in the morning.
The Nifty FMCG index was down 0.8 percent amid weakness across most sectors.
Dollar near 5-year peak to yen
The dollar hovered near a five-year high to the yen on Thursday, supported by a surge in US Treasury yields on rising bets for a Federal Reserve rate hike by March. The greenback stood at 116.115 yen, little changed from Wednesday, when it rallied back toward Tuesday’s high of 116.35. (Read more on the dollar)
Tube Investments, Affle, Zensar, Jubilant FoodWorks top BSE 500 laggards
Tube Investments, Affle, Zensar, Jubilant FoodWorks, ITDC, Responsive Industries, Fortis and Adani Ports were the worst hit among the around 380 losers in the broadest index on the bourse.
On the other hand, Sumitomo Chemical, Tata Teleservices, Suzlon, Balrampur Chini and CESC were among the gainers.
Commodity Market Round-Up: Natural gas prices jump 4%
Within the energy market, natural gas prices gained four percent overnight. Here’s what’s driving the rates.
Stock Tips | India Cements, JSW Steel, Voltas among Sudarshan Sukhani, Mitessh Thakkar’s top picks today
–Mitessh Thakkar of mitesshthakkar.com recommends buying India Cements shares for a target price of Rs 222 with a stop loss at Rs 200.
–Sudarshan Sukhani of s2analytics.com suggests going long on Voltas with a stop loss at Rs 1,200. (Check out their other recommendations today)
HDFC twins, Adani Ports, Tech Mahindra, IndusInd, Tata Motors among top blue-chip losers
Infosys, HCL Tech, Kotak Mahindra Bank, NTPC and Hero MotoCorp were also among the worst hit stocks. Only four stocks — Hindalco, UPL, Bharti Airtel and Coal India — held on to the green in the Nifty50 pack.
Here’s how the 30-scrip basket fared:
Sensex tanks over 600 points, Nifty50 cracks below 17,750
Both headline indices extended losses after a gap-down opening. The 30-scrip index fell as much as 640.8 points or 1.1 percent to 59,582.35 in the first few minutes of the session, and the broader Nifty50 benchmark slumped to as low as 17,737.4, down 187.9 points or one percent from its previous close.
Pre-Open Market | Sensex down nearly 500 points, Nifty below 17,800
In the pre-opening session, the 30-scrip index was down 491.4 points or 0.8 percent at 59,731.8 and the broader Nifty50 benchmark at 17,768.5, down 156.8 points or 0.9 percent from its previous close.
Brokerage Calls | UPL, real estate, cement stocks in the spotlight
–CLSA sees 2022 as a year of resilient demand and stable profitability for the cement space. Project announcements around state elections and the Union Budget could be a key catalyst, according to the brokerage.
–CLSA has maintained a ‘buy’ call on UPL but raised its target price to Rs 1,100 from Rs 1,060.
–Jefferies expects India’s residential property cycle to enter a second positive year in 2022. It also sees office occupancy rising as work-from-home operations reverse. (Catch other brokerage views today)
Global Cues | SGX Nifty suggests gap-down opening for Indian market
At 8:56 am, Singapore Exchange Nifty futures — an early indicator of the Nifty index — were down 157.5 points or 0.9 percent at 17,816.
Stocks To Watch | Phenix Mills, Future Retail, RBL Bank, UPL in focus today
–Phoenix Mills’ retail consumption has returned to pre-pandemic levels.
–CLSA is positive on UPL. The brokerage has raised its target and FY22-24 EPS estimates.
–RBL Bank’s loan growth stood at 3.5 percent in Q3 on a quarter-on-quarter basis and five percent on a year-on-year basis. (Check out the complete list of stocks to track today)
Business Update | Phoenix Mills retail consumption returns to pre-COVID levels
Phenix Mills said consumption stood at Rs 2,056 crore in Q3, around 100% of pre-pandemic levels.
Here are some highlights:
–Q3 consumption up 103 percent on a quarter-on-quarter basis, 49 percent on a year-on-year basis
–Total consumption in December 2021 at Rs 695 crore, 91 percent of December 2019
–Strong recovery across operational categories with many categories exceeding pre-COVID levels
–Collections at Rs 441 crore, up 68 percent YoY, 231 percent QoQ
MarketBuzz Podcast with Ekta Batra
Catch the big themes, vital news and key events you should know before the opening bell. MarketBuzz is your daily morning briefing by CNBC-TV18 research analysts and anchors to kickstart your stock market investing. (Tune in)
Expected muted rise in equities in 2022, India could see some consolidation: Standard Chartered’s Manpreet Gill
Manpreet Gill of Standard Chartered told CNBC-TV18 he expects the dollar to peak in the first half of 2022. The Federal Reserve has signalled its intentions fairly well, he said.
Gill is not looking for a dramatic shift in policy going ahead. The Chinese policy is shifting with a goal of greater stability, he added.
Expected muted rise in equities in 2022, India could see some consolidation: Standard Chartered’s Manpreet Gill
Manpreet Gill of Standard Chartered said in an interview to CNBC-TV18 he expects a muted rise for equities in 2022. He also thinks some consolidation could take place in India during the year.
2022 will be about how emerging markets pick up the baton, and the question is whether India has run up too much too soon, he said.
Businesses have become better in dealing with the COVID waves, Gill added.
Sensex rose 367 points to 60,223 on Wednesday, Nifty50 climbed to 17,925
Indian equity benchmarks extended their winning streak to the fourth session in a row on Wednesday, led by financial, consumer and metal shares. The 30-scrip index ended 367.2 points or 0.6 percent higher at 60,223.2 and the broader Nifty50 benchmark settled at 17,925.3, up 120 points or 0.7 percent from its previous close.
In the four back-to-back sessions, both headline indices have risen 4.2 percent. The Sensex has added 2,428.8 points and the Nifty50 risen 721.3 points.
Trade Setup | Can Nifty50 cross 18,000 now?
The Nifty50 has formed a reasonable long candle on the daily chart with minor upper and lower shadows, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities. Some consolidation or minor correction from the highs is possible, he said. (Check out key market cues before the opening bell)
S&P 500 tumbles 2%, Nasdaq Composite 3% after hawkish Fed minutes
On Wednesday, the S&P 500 tanked 1.9 percent, the Dow Jones 1.1 percent and the technology stocks-heavy Nasdaq Composite 3.3 percent.
Minutes of the Federal Reserve meeting signaled the US central bank may have to raise interest rates sooner than expected.
S&P 500 futures were up 0.1 percent in Asia early on Thursday.