Closing Bell | The Indian benchmark equity indices, Sensex and Nifty ended higher on Friday led by gains in PSU banks and auto stocks. The Sensex ended 117.65 points or 0.25 percent higher at 47,868.98, while Nifty settled at an all-time high level of 14,018.50, up 36.75 points or 0.26 percent. Broader markets outperformed the benchmarks with Nifty Smallcap100 and Nifty Midcap100 ending more than 1 percent higher each. Among sectors, Nifty PSU Bank rallied the most over 3 percent followed by Nifty Auto, Nifty IT, Nifty Pharma and Nifty Realty. Private banks remained under pressure.
Infosys | The IT major will announce results for the third quarter ended December 31, 2020 on January 13, 2021 around 3:45 p.m. Indian Standard Time (IST).
Larsen & Toubro | The Metallurgical and Material Handling (MMH) business of L&T Construction has secured EPC orders of Coal Processing plants in the domestic market and a prestigious Engineering & Procurement Project for a Metallurgical plant overseas. The business has also secured new orders from its various customers for products and an add on order from its existing customer, L&T said.
Macquarie sees multiple short & long-term challenges for Bandhan Bank
The Assam Assembly on December 30 passed the Micro Finance Institutions (Regulation of Money Lending) Bill 2020 which aims to protect economically weak groups from dubious microfinance institutions (MFIs) and money lenders.
The bill is “to create an effective mechanism to regulate the microfinance institutions or money lending agencies or organisations”.
The development is a cause of worry for Bandhan Bank as its business is concentrated in the region.
There is a cap on total borrower leverage to be about Rs 30,000-50,000 for tea plantation workers which form around 20 percent of the households in Assam. There is a cap of Rs 1,25,000 for other borrowers as well, said Macquarie.
“Not more than two lenders can lend to the same customer. loan repayments will be done only at Gram Panchayat offices or any other public offices or public places as designated by Deputy Commissioner,” it said.
According to Macquarie, this will have a medium to potentially long-term impact on the growth of Bandhan Bank in the state. Watch here.
Atul Auto December Sales | Total sales plunged 57.8 percent to 1,728 units from 4,100 units, YoY.
SML Isuzu December Auto Sales | Total sales declined 7 percent at 509 units versus 549 units, YoY.
Ashok Leyland December Auto Sales | Total sales was rose 14 percent to 12,762 units as against 11,168 units, YoY. Domestic sales grew 14 percent to 11,857 units from 10,378 units, YoY. M&HCV sales declined 2 percent to 6,884 units while LCV sales jumped 42 percent YoY to 5,878 units.
Market Watch: Hemen Kapadia of KRChoksey Securities
Firstly, a buy call on Sun Pharmaceutical at Rs 595 stop loss Rs 585 and target of Rs 615. We remain in a short, medium and possibly a longer term uptrend, the stock is headed for Rs 900 or so in next couple of years.
Secondly, a buy call on Colgate-Palmolive, one can buy at Rs 1,580 stop loss Rs 1,560 target Rs 1,620, above 55 day moving average, indicators supporting the move, consolidating for the last 4 trading sessions.
Lastly a buy call on Reliance Industries, this is a fifth day where Reliance has been doing nothing but consolidating. I feel it is setting the stage for a jump from here. So buy Reliance Industries at Rs 1,990 stop loss Rs 1,975 target Rs 2,020.
Raamdeo Agrawal: ‘Buy Right, Sit Tight’ is way to invest in the market; not investing is the biggest risk
‘Buy Right, Sit Tight’ is the way to invest in the market, said Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services on Friday.
“I always believe that nobody can time the market, so ‘Buy Right, Sit Tight’ – that’s the way to go in the equity market, not only in India but all over the world,” Agarwal told CNBC-TV18.
Agrawal said that earnings growth will come back this year. He added that not participating in the market is the biggest risk right now. Banks will not face COVID and telecom related stress this year, he said.
“We have seen the worst of economic and health disaster and yet we have done 15 percent. So 2021, hopefully, will not repeat the 2020 and we should have at least as good a year as 2020 on the whole.” Watch here.
SEC meeting underway | Subject Expert Committee (SEC) in the Central Drugs Standard Control Organisation (CDSCO) met underway today to consider the Emergency Use Authorisation (EUA) request of Pfizer, Serum Institute of India (SII) and Bharat Biotech Pvt. Ltd. Additional data and information is being presented by Serum Institute India. Pfizer and Bharat Biotech Pvt. Ltd. applications to be reviewed by SEC. The analysis of the additional data and information is going on, sources said.
GST Collections at all-time high | GST Revenue collection for December 2020 recorded all time high since implementation of GST at Rs 1,15,174 crore gross GST revenue collected in December. Revenues for December 2020 are 12 percent higher than the GST revenues in the same month last year.
Shah says the joint venture with Ford didn’t make sense to M&M because the capital they were putting in went up significantly, partly because of #COVID-19 outbreak pic.twitter.com/hOjoj41Fyq
— CNBC-TV18 (@CNBCTV18Live) January 1, 2021
Buzzing | Shares of Tata Consumer Products rose over 2 percent after the rating agency ICRA upgraded the rating for the long term instruments of Tata Consumer Products to ‘ICRA AAA’ with a stable outlook. The rating was previously ‘ICRA AA+’ with a stable outlook. The size of the instruments is about Rs 350 crore. It has however reaffirmed the short term debt rating at ‘ICRA A1+’.
APL Apollo Tubes | The company registerd sales volume of 4.86 lakh tonne in Q3FY21. The volume improved 1% YoY and QoQ.
Gayatri Projects | The company has been declared lowest bidder for project worth Rs 1,323.52 crore for development of six-lane access-controlled Highway in Uttar Pradesh.
Praj Industries | The company has bagged order worth Rs 226.90 crore from IOCL for execution of Zero Liquid Discharge System – Water Treatment Package and Waste Water Treatment Package of Acrylic/Oxo-Alcohol Project at IOCL Dumad, Gujarat.
Buzzing | Shares of Jindal Steel and Power rose more than 2 percent after Ministry of Coal declared the company as the successful bidder for Gare Palma IV/1 Mine. Jindal Power (JPL) a subsidiary of Jindal Steel & Power Limited (JSPL) has been declared the successful bidder for Gare Palma IV/1 coal mine by the Ministry of Coal, the company said.
Year 2021 for Indian equities: Vaccine, COVID situation, geopolitical trends, Budget to be key drivers, say analysts
The global COVID-19 situation, rollout of vaccines, geopolitical trends, Union Budget and economic recovery would be the major factors driving investor sentiments in 2021 after a tumultuous year which saw both ’the worst of times and the best of times’ for the stock market, said analysts.
What a year 2020 turned out to be! From witnessing gigantic losses to record-shattering gains, investors went on a roller-coaster ride amid the coronavirus pandemic and massive stimulus measures. Read more here.
Rupee Update | The Indian rupee is trading higher at 73.03 per dollar, amid buying in the domestic equity market. The rupee opened flat at 73.09 per dollar against Thursday’s close of 73.07.
Market Watch: Manish Hathiramani of Deen Dayal Investments
First is a buy on Axis Bank for a target of Rs 640 and a stop loss of Rs 605. There has been a mild correction on this stock and it has a very good medium term support between Rs 605 to 610, keeping that has a stop one can go long for a higher target of Rs 640.
The second buy call is on Bajaj Finance for a target of Rs 5,550 with a stop loss of Rs 5,240. The stock did correct briefly and came closer to the support levels of Rs 5,250. Keeping that as a base the stock can now go towards the target of Rs 5,550.
Buzzing | Escorts December tractor sales jump 88% YoY to 7,733 units; shares rally
Shares of Escorts Ltd gained over 3 percent in the early trade on Friday after the company reported a strong growth of 88% in December sales.
Escorts Ltd Agri Machinery Segment (EAM) in December 2020 sold 7,733 tractors, its highest ever December sales and registering a growth of 88 percent against 4,114 tractors sold in December 2019.
Domestic tractor sales in December 2020 was at 7,230 tractors registering a growth of 90 percent against 3,806 tractors in December 2019, the company said.
Export tractor sales in December 2020 was at 503 tractors against 308 tractors sold in December 2019, registering a growth of 63.3 percent.
NCC Ltd| The company has received 15 new orders totaling to Rs 8,980 crore (exclusive of GST) in the month of December, 2020. These orders are received from Central/State Government agencies and do not include any internal orders, the company said.
New Listing | Antony Waste Handling Cell lists at Rs 436.10 apiece on NSE, a premium of over 38%
The shares of Antony Waste Handling Cell got listed at Rs 436.10 apiece on the NSE, a premium of 38.4 percent over the issue price of Rs 315 per share. The stock got listed at Rs 430 on the BSE. The IPO of the company had received 15 times subscription during December 21-23. Read more here.
