Benchmark indices plunged for the second consecutive session on Wednesday amid tensions in the Middle East that has spooked oil markets, and in turn equity markets. The 30-share pack Sensex declined 656.04 points or 1.08 per cent to close at 60,098.82. The index gyrated in a 920-point range during the day. Its broader peer NSE Nifty fell 174.65 points or 0.96 per cent to 17,938.40. IT, FMCG and financials were under selling pressure while auto and metals saw buying. Broader markets also performed relatively better, which kept the portfolio losses in check.
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US stock indices bounce back on strong earnings
The Dow Jones Industrial Average rose 43.83 points, or 0.12 per cent, at the open to 35,412.30. The S&P 500 opened higher by 10.92 points, or 0.24 per cent, at 4,588.03, while the Nasdaq Composite gained 75.32 points, or 0.52 per cent, to 14,582.22 at the opening bell.
Asian Paints Q3 preview: Expect sharp drop in PAT, margins due to inflation
Asian Paints is likely to see strong sales growth but rising raw material costs will make a sharp dent in its bottom line and operating margins, analysts said. The consensus shows revenue may rise in the range of 16-24 per cent during the December quarter, profits may fall around 21-22 per cent, while margins are likely to decline to the tune of 9 percentage points.
People are mostly talking about the industrial clusters, R&D, supply chain reforms and many other things but two things I would want to position here. Industrial clusters and R&D were the two clear demands from the Atmanirbhar Bharat scheme. It got overwhelming support from two industries – automobiles and electronics. They supported it 100% and that really stands out
– Sanjay Kumar, Partner, Deloitte India
Avendus raises Rs 432 cr for its AIF Cat II fund from family offices, HNIs
Avendus PE Investment Advisors, an asset management arm of Avendus Group, on Wednesday said it raised Rs 432 crore in the first close of Avendus Structured Credit Fund II, a category II, Alternative Investment Fund (AIF), last week. The fund is targeting a total corpus of Rs 1,000 crore including the green shoe option of Rs 500 crore.
Bajaj Auto Q3 standalone profit tumbles 22% to Rs 1,214 cr YoY; revenue flat
The company said its revenue from operations rose 1.25 per cent year-on-year (YoY) to Rs 9,022 crore from Rs 8,910 crore in the same quarter a year ago.
IPO WATCH: AGS Transact subscribed 88% on Day 1
The correction in markets continues for 2nd day as markets correct 1% post US bond yield hitting 2 years high. We see weakness in market for coming 2 weeks. Investors are advised to keep strict stop losses and adopt buy on dips strategy. We expect the volatility to continue till the budget session. It is advised to not to over trade in current scenario.
– Rahul Sharma, Co-owner, Equity 99
Weak global cues like rising US bond yields and crude at record highs are taking a toll on markets across the globe including ours. Besides, there’s nothing much to support from the domestic front as well. At the top of it, volatility, due to the earnings, is further adding to the participants’ worries. Amid all, we reiterate our positive view on markets and suggest utilising dips to add quality stocks. Nifty has next support at 17,800 and major around 17600 zone.
– Ajit Mishra, VP – Research, Religare Broking
Oil market headed for surplus as Omicron impact muted: IEA
Oil supply will soon overtake demand as some producers are set to pump at or above all-time highs, the International Energy Agency (IEA) said on Wednesday, while demand holds up despite the spread of the Omicron coronavirus variant. “This time around, the surge is having a more muted impact on oil use,” the Paris-based IEA said in its monthly oil report.
Globally, risk sentiments took a blow as rising inflation resulting in elevated bond yield along with the on-going geopolitical tensions and surge in oil prices weighed on investor confidence. This along with consistent FII selling forced the domestic market to trade in favour of bears for the second consecutive day. The UK’s inflation rate rose to 5.4% in December from 5.1% in November owing to rising demand, surging energy costs and supply constraints.
– Vinod Nair, Head of Research at Geojit Financial Services
Rupee close today
Rupee rises 14 paise to close at 74.44 (provisional) against US dollar
— Press Trust of India (@PTI_News) 1642587482000
Premium auto dealership chain Landmark files papers for Rs 762 crore IPO
Automobile dealership chain Landmark Cars Ltd has filed preliminary prospectus with capital markets regulator Sebi to raise Rs 762 crore through an initial public offering. The public issue consists of a fresh issue of equity shares aggregating to Rs 150 crore and an Offer For Sale (OFS) of up to Rs 612 crore, according to the Draft Red Herring Prospectus (DRHP).
Q3 RESULTS: ICICI LOMBARD
Tech View: Market weakness to extend
— Rupak De, Senior Technical Analyst at LKP Securities
Advance-decline ratio favours sellers
Sector Watch
Top Sensex drags today
CLOSING BELL: Sensex gyrates 921 pts, ends 656 pts lower; Nifty below 17,950; ONGC, GAIL jump 4% each
Silver jumps Rs 1,603, gold marginally up
Silver prices spurted by Rs 1,603 per kg while gold was marginally up in the local market here on Wednesday amid a weaker rupee, according to HDFC Securities.Gold prices inched up by Rs 16 to Rs 47,878 per 10 grams. In the previous trade, the precious metal had settled at Rs 47,862 per 10 gram.”Gold prices traded slightly higher following a weak rupee,” according to Dilip Parmar, Research Analyst, HDFC securities.
Q3 RESULTS: JSW ENERGY
CLOSING CUES: Midcap losers in late afternoon trade
Price as on 19 Jan, 2022 02:43 PM, Click on company names for their live prices.
STOCK IN FOCUS: Biocon surges after Morgan Stanley turns ‘overweight’ on stock, raises target price to Rs 465
Price as on 19 Jan, 2022 02:38 PM, Click on company names for their live prices.
NIFTY IT biggest sectoral loser at this hour
Gold, silver spot prices
Nikkei falls to 5-month low dragged down by Toyota, Sony
Japan’s Nikkei index fell to a five-month low on Wednesday, dragged down by Sony Group and Toyota Motor, tracking Wall Street’s weak finish overnight. The Nikkei share average fell 2.8% to 27,467.23, its lowest since Aug. 20, while the broader Topix lost 2.97% to 1,919.72.
Earnings Impact: Sterlite Tech tanks 6% as firm returns to losses in Q3FY22 and fall in revenue
Price as on 19 Jan, 2022 01:38 PM, Click on company names for their live prices.
Q3 RESULTS: STERLITE TECH
Tata Motors forays into CNG segment; drives in CNG trims of Tiago, Tigor
Price as on 19 Jan, 2022 01:21 PM, Click on company names for their live prices.
Vijay Kedia likely exited these two companies in December quarter
Seasoned investor Vijay Kedia has potentially exited two companies during the quarter ended December 31, 2021, the latest shareholding data shows. Kedia’s name was missing from the key shareholders’ list of Cera Sanitaryware and Elecon Engineering Company. Vijay Kedia held 1,35,306 equity shares or a 1.04 per cent stake in Cera Sanitaryware, whereas he held 13,00,000 equity shares or a 1.16 per cent stake in Elecon Engineering as of September 30, 2021.
State-run power giant NTPC has emerged as the top biomass user, having co-fired about 58,000 MT of biomass, while tendering a total of 10.7 MMT over short-term and long-term basis, the power ministry said on Wednesday.
Price as on 19 Jan, 2022 12:50 PM, Click on company names for their live prices.
STOCK IN FOCUS: Paytm hits fresh record low
Sensex extends slide, down nearly 700 points
We like this space. There is going to be a decent amount of growth over the next couple of years. The only thing is that there is a little lack of clarity in terms of the time that it takes to go back to a peak level in a better demand environment pan India. I see no real major negatives for cement at this point of time.
– Hemang Jani of MOSL on cement sector
NEWS ALERT: Drug firm Lupin on Wednesday said it has inked a pact with Shenzhen Foncoo Pharmaceutical Co to sell products in China.
Price as on 19 Jan, 2022 11:59 AM, Click on company names for their live prices.
MOSL on real estate sector
- The Residential Real Estate sector is poised for an upcycle, primarily buoyed by the improved affordability.
- Inventory across most of the cities is at manageable levels (overhang of 23 months) and will be at an inflection point within the next 12-18 months to start the pricing upcycle for the industry.
- The ongoing industry consolidation led by concentration of capital, 400-600bp advantage in cost of funding for large developers and buyers’ trust on organized developers bodes well for large developers.
- We prefer players with robust cash flow generation potential and ability to further build their project pipelines which will lead to re-rating. We initiate coverage on LODHA / OBER with BUY and DLF / GPL with NEUTRAL.
Jubilant Foodworks launches Popeyes in India, with first restaurant in Bengaluru today
JUST IN: M&M and Hero Electric Vehicle announced a strategic partnership in electric mobility.
Price as on 19 Jan, 2022 11:45 AM, Click on company names for their live prices.
Global Market Check: US futures tank
Rupee falls 12 paise to 74.70 against US dollar in early trade
Omicron poses limited downside to Indian economy: Reuters Poll
There is scant downside risk to the Indian economy in the last months of this financial year from the Omicron coronavirus variant, according to economists polled by Reuters who said New Delhi should focus on fiscal prudence in its February budget. Asia’s third-largest economy is in the midst of a resurgence in coronavirus cases driven by the new variant that has forced most states to impose localised restrictions. The Jan. 11-18 poll of over 45 economists forecast 5.0% economic growth this quarter, a sharp downgrade from the 6.0% given in December, finishing the year at 9.2% compared with 9.5% in the previous month’s poll.
IPO UPDATE: AGS Transact subscribed 28% so far
Ashoka Buildcon wins Rs 111.51 crore project from Bailey Properties for construction of mall cum multiplex
Price as on 19 Jan, 2022 10:22 AM, Click on company names for their live prices.
The 18210-330 region that we had kept In our cross hairs for the last few days, with the expectation of offering stiff challenges to upsides, stood firm despite persistent attempts to push higher. But as expected, when Nifty finally capitulated yesterday, a collapse did not follow, and it would require more distribution before 17600 can be fancied. For now, 17950 looks to be a base case scenario. Alternatively, pull back above 18250 could render the trend neutral, but it would be prudent to look for a close above 18330 or dips to 17950 before reconsidering longs.
– Anand James – Chief Market Strategist at Geojit Financial Services
Indian Energy Exchange divest 4.93% equity stake to Indian Oil
Price as on 19 Jan, 2022 10:08 AM, Click on company names for their live prices.
Most active stocks on NSE
Price as on 19 Jan, 2022 09:51 AM, Click on company names for their live prices.
Market Check: Nifty50 slips below 18,000
Jhunjhunwala hikes stake in Tata Motors; stock flat in opening trade
Ace investor Rakesh Jhunjhunwala increased his stake in his third largest stock holding Tata Motors by 7 basis points in December quarter, latest shareholding data suggests. Jhunjhuwala, who entered Tata Motors in September quarter of 2020, held 39,250,000 shares or 1.18 per cent stake in the Tata Group company as of December quarter, up from 36,750,000 shares, or 1.11 per cent, stake at the end of September quarter. Jhunjhunwala had trimmed his stake in the company in the previous two quarters.
Market View: Be cautious, negative triggers can derail rally
For India, the sharp spike in crude is posing major threats to inflation and fiscal and current account balances. On the positive side, the Q3 results indicate a smart pick up in earnings. While this strong fundamental can support the market, investors have to be cautious since at the present high valuations negative triggers can derail the rally.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Earnings Impact
Price as on 19 Jan, 2022 09:21 AM, Click on company names for their live prices.
Sector Watch: Barring metals, all indices start lower
OPENING BELL: Sensex drops 200 points, Nifty below 18,050; Bajaj Finance rises 2%
Pre-open session: Sensex gains 75 points; Nifty above 18,150
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded merely 22 points, or 0.12 per cent, lower at 18,116.50, signaling that Dalal Street was headed for a negative start on Wednesday.
Tech View: Nifty support at 18,080 level
The Nifty50 on Tuesday saw selling pressure at its key resistance level of 18,350, as the index ended up forming a bearish candle on the daily chart that engulfed candles of the last four sessions. A fall below the 18,100-080 range may trigger further weakness, analysts warned. The index has bridged the bullish gap present in the zone of 18,128 and 18,081, with an intraday low of 18,085 level.
US dollar rises as bond yields rise
The dollar was firm on Wednesday after a rip higher in US yields vaulted it up sharply on the euro overnight, putting it back above support levels that have held for the past few months in anticipation of rising US interest rates. Dollar Index gained to 95.768.
Oil hits seven-year highs on recovery hopes, unrest
Oil prices hit their highest levels in more than seven years, driven in part by hopes of a global economic recovery that would ramp up demand. As per Reuters, Bret crude futures jumped $1.21 to hit $88.72 a barrel level in Wednesday’s trade. A drone attack on Monday in Abu Dhabi claimed by Yemen’s Huthi rebels, which triggered a fuel tank blast that killed three people, also supported prices.
Hong Kong shares open higher
Hong Kong stocks opened with gains at the start of trade Wednesday as dip-buyers moved in following three days of losses, though sentiment was dented by ongoing concerns about Federal Reserve plans to hike interest rates. The Hang Seng Index rose 0.49 percent, or 117.00 points, to 24,229.78. The Shanghai Composite Index eased 0.06 percent, or 2.28 points, to 3,567.63.
Japan shares open lower after US losses
Tokyo shares opened lower on Wednesday, tracking losses on Wall Street where worries over higher interest rates mounted. The benchmark Nikkei 225 index fell 1.68 percent or 474.38 points to 27,782.87 in early trade, while the broader Topix index lost 1.63 percent or 32.21 points to 1,946.17.
US stocks sinkcas Treasury yields jump
Benchmark US Treasury yields jumped to two-year highs and equity markets tumbled on Tuesday as traders braced for the Federal Reserve to tackle fast-rising inflation by tightening monetary policy. On Wall Street, the Dow Jones Industrial Average slid 1.51%, the S&P 500 fell 1.84% and the Nasdaq Composite slipped 2.60% to close almost 10% below its record closing high on Nov. 19, which would confirm a correction.
Rupee slumps 33 paise to 2-week low
Continuing its fall for the third straight session, the rupee on Tuesday slumped by 33 paise to close at a two-week low of 74.58 against the US dollar as a strong American currency and elevated crude oil prices continue to weigh on investor sentiments. Forex traders said muted domestic equities and dollar buying by banks on behalf of importers also dragged the local unit down.
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