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.
Market Watch: Chandan Taparia, Derivative & Technical Analyst, Motilal Oswal Financial Services
Buy Infosys with a stop loss of Rs 1,225 and expecting a move towards Rs 1,300-1,325.
Buy Motherson Sumi with a stop loss at Rs 160 and expecting a rally towards Rs 175.
Buy Jubilant Foodworks with a stop loss of Rs 2,730 and expecting it to hit to previous lifetime high of Rs 2,924 levels.
Bitcoin touches record above $29,000, extending 2020 rally
The price of Bitcoin topped $29,000 on Thursday for the first time, with the digital currency almost quadrupling in value this year amid heightened interest from investors big and small alike. The world’s most popular cryptocurrency touched $29,300 before pulling back, most recently down 0.67% at $28,774.36. It has surged by nearly half since breaking $20,000 for the first time on Dec 16. Bitcoin‘s potential for quick gains, as well as expectations it could become a mainstream payment method, has attracted demand from larger U.S. investors, as well as from traders who normally stick to equities, Reuters reported.
US jobless claims | The number of Americans seeking unemployment benefits fell by 19,000 but remain elevated at 787,000 as a resurgent coronavirus grips the US economy. While at the lowest level in four weeks, the new figures released Thursday by the Labor Department are nearly four times higher than a year ago before the coronavirus struck. Employers continue to cut jobs as rising coronavirus infections keep many people at home while state and local governments re-impose restrictions.
Reliance Infrastructure Ltd | The company has announced the completion of the sale of its 100 percent stake in DA Toll Road to Cube Highways and Infrastructure III Pte Ltd for an enterprise value over Rs.3,600 crore.
Escorts | Total sales in December rose to at 7,733 units as against CNBC-TV18 poll of 5,000 units. Total sales rose 88 percent, YoY, while domestic sales increased by 90 percent to 7,230 units, YoY.
Opening Bell | Indian equity benchmark indices opened higher on Friday led by across the board buying
At 9:15 am, the Sensex opened 0.07 percent, or 33.95 points, higher at 47,785.28, while the Nifty50 index opened at 13,996.10, up 14.35 points, or 0.10 percent.
Broader markets outperformed the benchmarks with Nifty Smallcap100 and Nifty Midcap100 indices up 0.5 percent each.
Among sectoral indices, the Nifty PSU Bank rallied the most over 1 percent followed by Nifty Auto, Nifty IT and Nifty Media.
Trump extends visa ban, health coverage policy advances
Pesident Donald Trump on Thursday extended pandemic-related bans on green cards and work visas to large groups of applicants through March 31, while a federal appeals court sided with him on a rule that requires new immigrants to have their own health insurance.
The twin developments on the final day of 2020 encapsulated how Trump has made US immigration policy more restrictive without support from Congress. President-elect Joe Biden has promised to undo many of Trump’s actions but it is unclear how quickly and even to what extent. Read more here.
Sebi extends date for applicability of NAV from January 1 to February 1, 2021
Due to operational challenges presented by AMFI, the markets regulator Sebi on Thursday has extended the date of implementation of uniformity in applicability of NAV on realisation of funds to February 1, 2021 from January 1, 2021. According to the new rules which were announced in September, investors will purchase NAV of the day when investor’s money reach AMC, irrespective of the size of the investments.
With respect of the purchase of units of mutual fund schemes (except liquid and overnight schemes), closing NAV of the day shall be applicable on which the funds are available for utilisation irrespective of the size and time of receipt of such application. These rules would not apply to liquid and overnight funds.
S&P 500, Dow close at record highs, dollar gains at end of tumultuous year
Wall Street advanced on Thursday and the dollar gained ground as investors closed the book on a turbulent year of pandemic, recession and recovery. All three major indexes gained ground, with the Dow and S&P 500 picking up steam in the session’s final minutes to exit 2020 at record highs.
Over the course of a historic year, the indexes both roared and plummeted as economic shutdowns to contain the coronavirus brought markets to their knees. Read here.
Govt extends benefits of tax refund scheme to all export goods
Giving relief to exporters, the government on Thursday said it has decided to extend the benefit of tax refund scheme RoDTEP to all goods, with effect from Friday. In March, the government approved the scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) for reimbursement of taxes and duties to exporters, with a view to give a boost to the country’s dwindling outbound shipments. The scheme, it said, would refund to exporters the embedded central, state and local duties and taxes that were so far not being rebated or refunded and were, therefore, placing India’s exports at a disadvantage.
M&M, Ford call off automotive joint venture
Mahindra & Mahindra has and Ford Motor Company have called off their automotive joint venture due to the challenges caused by the COVID-19 pandemic. The companies said in separate statements that the decision was driven by changes in the global economy over the last 15 months, causing both to reassess their capital allocation priorities. This decision will not have any impact on the company’s product plan, M&M said.
First up, here is quick catchup of what happened in the markets on Thursday
The Indian benchmark indices, Sensex and Nifty ended Thursday’s choppy session on a flat note. Nifty ended flat at 13,982 after crossing 14,000 Intra-day for the first time ever, while Sensex closed 5 points higher at a record closing high of 47,751. Gains in metals, pharma, realty and auto stocks were countered by selling pressure in FMCG, PSU Banks and financial stocks. Broader markets outperformed with Nifty Smallcap100 and Nifty Midcap100 ending 0.13 percent and 0.38 percent higher, respectively.
Welcome to CNBC-TV18’s Market Live Blog
Good morning, readers! I am Ankit Gohel from the market’s desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!
