MARKETS: Indices end at record closing peaks; Nifty settles above 13,000

The S&P BSE Sensex rallied 446 points, or 1 per cent to settle at a fresh closing high of 44,523 levels.
Continuing their gaining streak, the benchmark indices ended 1 per cent higher on Tuesday amid across-the-board buying. 

The S&P BSE Sensex rallied 446 points, or 1 per cent to settle at a fresh closing high of 44,523 levels. During the day, the index hit a high of 44,601.63 levels. On similar lines, NSE's Nifty breached the psychological level of 13,000 to settle at 13,055, up 129 points, or 1 per cent. 

Volatility index, India VIX, gained over a per cent to 21.05 levels.

HDFC Bank, ICICI Bank, Axis Bank, and Reliance Industries (RIL) were the major contributors to the Sensex's gain today. Axis Bank (up 4 per cent) was the biggest gainer on the index while HDFC (down nearly 1.5 per cent) was the top loser. 

In the broader market, the S&P BSE MidCap index ended 0.58 per cent higher at 16,739 levels while the S&P BSE SmallCap index gained 0.89 per cent to 16,550 points.

On the NSE, all the sectoral indices ended in the green. Nifty Bank surged 713 points, or 2.46 per cent to 29,737 levels. 

Global markets

Stocks gained on Tuesday as the formal go-ahead for US President-elect Joe Biden to begin his transition added to an already brighter mood from progress made on Covid-19 vaccines and the prospects for a speedy global economic revival.

European markets appeared set to extend optimism in Asian and US equities, with Euro Stoxx 50 futures and FTSE futures up 0.52 per cent and 0.42 per cent, respectively.

China stocks, however, closed lower as investors booked profits following recent strong gains.

In commodities, Brent crude prices hit their highest levels since March while gold hit a four-month low as investors deserted the safe-haven metal on hopes for the vaccine. 

(With inputs from Reuters)

3:43 PM IST

3:42 PM IST

3:36 PM IST The S&P BSE Sensex ended at 44,523 levels, up 446 points, or 1 per cent while NSE's Nifty closed above13,000 levels at 13,055, up 129 points, or 1 per cent. 

3:29 PM IST

3:23 PM IST

3:12 PM IST Indian economy is recovering well. Credit growth also has started picking up. Electricity consumption, PMI, GST collections, and Eway bill data has been quite encouraging. With the road map for vaccination clearing, the economy will be back to full steam in 2021. The prospects ahead look quite encouraging as demand across sectors has started to look promising. The reset has had challenges, but it has also brought forth good opportunities, and corporates across the country are gearing to cash on them. So, even though markets are at an all-time high, but the risk to rewards still appear promising for the patient long term investors

3:06 PM IST With stimulus packages being announced across the globe amid the Covid-19 pandemic, base metals are seen benefiting from the same. Copper, zinc and nickel have been rallying for the last 8 months as a broad-based weakening of the dollar made commodities cheaper for holders of other currencies. Besides, supply constraints from the pandemic-hit Latin American nations provided support to the metals, said brokerages. READ MORE

2:57 PM IST COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%) SUNTECK REALTY 288.30 342.30 321.70 11.59 NAVA BHARAT VENT 46.70 52.20 52.00 11.35 VA TECH WABAG 184.10 204.15 202.00 9.72 BOSCH 11801.70 13300.00 12910.00 9.39 Click here for the full list

2:47 PM IST

2:46 PM IST

2:40 PM IST

2:34 PM IST Shares of automobile companies were in focus at the bourses on Tuesday, with individual stocks rising up to 6 per cent. The Nifty Auto index, meanwhile, climbed as much as 2.25 per cent intra-day to 8,935 level and was the top sectoral gainer. In comparison, the Nifty50 index was trading 0.95 per cent higher, at 2 PM. Among individual stocks, Mahindra & Mahindra gained 5.67 per cent to Rs 745.50, its fresh 52-week high, while Eicher Motors also hit its 52-week high level of Rs 2,715 on the NSE. READ MORE

LIVE UPDATES

Nifty Bank jumps 713 points


MARKET AT CLOSE | Gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex ended at 44,523 levels, up 446 points, or 1 per cent while NSE's Nifty closed above13,000 levels at 13,055, up 129 points, or 1 per cent. 

MARKET CHECK


Top losers on the BSE at this hour


Expert View :: B Gopkumar, MD & CEO, Axis Securities

Indian economy is recovering well. Credit growth also has started picking up. Electricity consumption, PMI, GST collections, and Eway bill data has been quite encouraging. With the road map for vaccination clearing, the economy will be back to full steam in 2021. The prospects ahead look quite encouraging as demand across sectors has started to look promising. The reset has had challenges, but it has also brought forth good opportunities, and corporates across the country are gearing to cash on them. So, even though markets are at an all-time high, but the risk to rewards still appear promising for the patient long term investors

Select base metals may continue to rally in 2021 over weakening dollar

With stimulus packages being announced across the globe amid the Covid-19 pandemic, base metals are seen benefiting from the same. Copper, zinc and nickel have been rallying for the last 8 months as a broad-based weakening of the dollar made commodities cheaper for holders of other currencies. Besides, supply constraints from the pandemic-hit Latin American nations provided support to the metals, said brokerages. READ MORE

Recovery from intra-day lows in today's session

COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%)
SUNTECK REALTY 288.30 342.30 321.70 11.59
NAVA BHARAT VENT 46.70 52.20 52.00 11.35
VA TECH WABAG 184.10 204.15 202.00 9.72
BOSCH 11801.70 13300.00 12910.00 9.39
Click here for the full list

Nifty Bank index gains over 600 points


BUZZING STOCK | RBL Bank surges 7%


Heatmap: S&P BSE Sensex gainers and losers at this hour


Auto stocks in focus; M&M, Eicher Motors hit fresh 52-week highs

Shares of automobile companies were in focus at the bourses on Tuesday, with individual stocks rising up to 6 per cent. The Nifty Auto index, meanwhile, climbed as much as 2.25 per cent intra-day to 8,935 level and was the top sectoral gainer. In comparison, the Nifty50 index was trading 0.95 per cent higher, at 2 PM. Among individual stocks, Mahindra & Mahindra gained 5.67 per cent to Rs 745.50, its fresh 52-week high, while Eicher Motors also hit its 52-week high level of Rs 2,715 on the NSE. READ MORE

BROKERAGE VIEW | HDFC Securities on FMCG sector

Within the FMCG universe, Dabur, Britannia, GCPL, Radico, Emami, and Nestle outperformed, clocking revenue growth of 14/12/11/11/11/10% YoY respectively. Growth in packaged food and hygiene moderated, although it continued to remain strong, following reduced fear among consumers and easing of restrictions. Discretionary demand witnessed substantial sequential improvement as increased economic activity and more instances of going out lifted sentiments. Rural growth has been ahead of urban due to lower restrictions, migration of labour & capital and healthy agri economy. We expect rural will remain strong in 2HFY21. However, we remain cautious and selective within the sector due to the unfavourable medium-term risk-reward, given modest absolute growth relative to expectations and valuations. Despite defensive characteristics, we are underweight on the sector in our model portfolio. We recommend BUY on ITC and ADD on UNSP, Colgate and Radico.
 

Expert View :: Bhavin Mehta, VP – Derivatives Strategist, Dolat Capital

Strong flow from FIIs helps Nifty move past the 13k mark, the journey of the last 1000 points in just 14 trading sessions. A bit of concern comes from India Volatility Index that has moved past 21 now and no immediate major event.

Remain Long till Nifty holds 12700 marks expect fresh unmoved on close above 13100 marks towards 13350 marks.
 
We have seen a slight decline in roll cost on the back of MSCI adjustment early fresh series. Thus, all in all, concerns remain only with VIX that has seen a sharp uptick without any foreseeable major event in the near term.
 
Participants believe the recent rally led by MSCI flows however, it has been across EMs and not just India. Dollar Index will be something to watch out for further aggression on flows from foreign participants. Sectors that led to BUYING recently: Metals, Banking, Financials, and Auto as we saw IT, Pharma and FMCG taking a back seat.
 

NIFTY HITS HIGH OF 13,059


AAVAS Financiers gains 6% in two days after stake sale by AU Small Fin Bank

On Monday, November 23, AU Small Finance Bank sold 3.5 million shares, representing 4.5 of total equity of AAVAS Financiers, according to BSE bulk deals' data. The value of these shares, at Rs 1,515.2 a piece was Rs 530.3 crore. AU SFB held 3.58 million equity shares or 4.57 per cent stake in AAVAS Financiers as on September 30, 2020, the shareholding pattern data shows. READ MORE

Why retail, HNI investors may be regretting giving Gland Pharma IPO a miss

On Monday, the stock rose 15 per cent to end at Rs 2,095. At one point, the stock was locked in 20 per cent upper circuit, with only buyers and no sellers in the counter. Some selling, however, emerged later. The stock got listed on Friday and ended the session at Rs 1,820, a gain of 21 per cent over its issue price. READ MORE

Good performance masks problem assets for Indian banks, says S&P

Rating agency S&P, in a statement, said while financial institutions performed better than we expected in the second quarter, much of this is due to the six-month loan moratorium, as well as a Supreme Court ruling barring banks from classifying any borrower as a non-performing asset. It released a report "The Stress Fractures In Indian Financial Institutions." READ MORE

BSE Consumer Discretionary goods & services index up 1.42%


NEWS ALERT :: Datamatics to sell-off entire stake in subsidiary firm CIGNEX Datamatics

>> The Board of Directors of Datamatics Global Services has approved to dispose off the entire stake which is indirectly held by the Company in its Step Down and Material Foreign Subsidiary, namely CIGNEX Datamatics, Inc, a corporation headquartered in the USA by way of divestment through stock redemption agreement entered into by and between Cignex US and Datamatics Global Technologies Limited, Mauritius


Expert View :: Sameet Chavan- Chief Analyst -Technical and Derivatives at Angel Broking

We have already seen a mesmerising move in last three weeks. In fact, so far this month, Nifty and BankNifty have clocked whopping gains of 12% and 24%, respectively. It is backed by lot of positive news flow around the globe and a relentless buying of FIIs in our market, probably one of the biggest cash market buying figure ever in a single month. So market is very much likely to hit new records highs time and again. Immediately 13,100-13,200 are the levels to watch out but we will not be surprised to see 13,700 in coming months. On the lower side, 12,730-12,570 should be seen as sacrosanct support zone.

Bitcoin at $100,000 in 2021? Outrageous to some, a no-brainer for backers

Bitcoin investors, which include top hedge funds and money managers, are betting the virtual currency could more than quintuple to as high as $100,000 in a year. It's a wager that has drawn eye-rolls from skeptics who believe the volatile cryptocurrency is a speculative asset rather than a store of value like gold. Since January, bitcoin has gained 160%, bolstered by strong institutional demand as well as scarcity as payment companies such as Square and Paypal buy it on behalf of customers. READ MORE

SECTOR WATCH :: Realty stocks gain on report Maha govt suggests lowering FSI rates

>> Mumbai has seen a doubling of house registrations in October this year YoY

>> CNBC-TV18 reports that BMC commissioner is working with all the key political parties to request that 22 different premiums to be paid by realty companies be excused till end of 2021

Alert: FSI is Floor Space Index


SECTOR WATCH:: Cement stocks under pressure in an otherwise firm market

COMPANY LATEST(rs) CHG(%)
INDIA CEMENTS 153.75 -1.22
AMBUJA CEMENTS 255.75 -0.93
ORIENT CEMENT 70.60 0.64
ACC 1710.20 -0.81
PRISM JOHNSON 80.10 -1.17
» More

NSE declares Karvy Stock Broking as defaulter, expels from membership

The National Stock Exchange (NSE) has declared Karvy Stock Broking as a defaulter for non-compliance with the regulatory provisions of the bourse.
 
In addition, Karvy Stock Broking has been expelled from the membership of the exchange, the NSE said in a circular. READ MORE

Expert View :: Hemang Jani, Head - Equity Strategy, Broking & Distribution, MOFSL

Nifty crosses the 13,000 levels for the first time ever and made record highs today. Sensex also rose to a new life time high. Indian indices opened on record-high levels on Tuesday, tracking gains in Asian peers, on the back of the progress made on the Covid-19 vaccine and the prospects for a speedy global economic revival.

The overall sentiments are strong and the market outlook is positive going forward. If the foreign fund inflows continue we can see higher levels on Nifty in coming days/weeks. Nifty can possibly touch 13,200-13,400 levels also. But it also depends on the sustainability of the economic growth over the next few months post festive season. Hence at the current market levels it is advisable to partially book profits and sit on 15-20% Cash in the portfolio. Any corrections in the market can be used to deploy funds at lower levels.

BROKERAGE VIEW | Emkay Global Financial Services on Mphasis

RATING: HOLD | TARGET PRICE: Rs 1,440 

While strong deal momentum and continued traction in the Direct business augur well for revenue growth, the weakness in DXC revenues and uncertainty around the revenue trajectory after the MRC period remain key risks. Maintain Hold with a TP of Rs 1,440.

MARKET UPDATE:: Financials lead contributors to Sensex's gain today


Nifty hits 13,000-mark, Sensex at record peak: Is it time to book profits?

The dream run of the domestic equities reached a new pinnacle on Tuesday when the Nifty50 index surpassed the 13,000-mark for the first time ever. The S&P BSE Sensex, meanwhile, kissed the 44,500-mark in intra-day deals. A cocktail of better-than-expected earnings, improved Goods and Services Tax (GST) collection, better macro-data, and progress in Covid-19 vaccine development has pushed the markets to their peaks, analysts say. That said, while the markets look poised for sustained uptrend, investors may consider profit-booking gradually, say analysts. READ MORE

JP Morgan sees possible $300 billion rebalancing flow from stocks

Rebalancing flows may lead to an exodus of around $300 billion from global stocks by the end of the year, according to JPMorgan Chase & Co. Large multi-asset investors may need to rotate money into bonds from stocks after strong equity performance so far this month, strategists led by Nikolaos Panigirtzoglou wrote in a note Friday. They include balanced mutual funds, like 60/40 portfolios, U.S. defined-benefit pension plans and some big investors like Norges Bank, which manages Norway’s sovereign wealth fund, and the Japanese government pension plan GPIF, the strategists said. READ MORE

S&P BSE SmallCap index outruns benchmarks


Equitas, Ujjivan small finance banks: Long-standing demand may soon be met

After two years of multiple representations and listing their small finance bank (SFB) arms, there could be some respite for Equitas and Ujjivan — their SFBs and holding companies. With the Mohanty Committee on Friday (post market hours) recommending that a holding company (holdco) model need not be mandatory for all banks, the two SFB stocks rose sharply in Monday’s trade, up 12-20 per cent. READ MORE

Dr Lal PathLabs, Metropolis: How healthcare stocks look on charts

Shares of diagnostic and healthcare services firms such as Metropolis Healthcare, Dr Lal PathLabs, and Thyrocare Technologies were trading in the positive territory on Tuesday, a day after the Maharashtra government imposed restrictions on all air and rail passengers arriving from Delhi, Gujarat, Rajasthan, and Goa. Passengers travelling from these states — which have seen a significant surge in cases — will have to obtain a negative RT-PCR test report before starting. READ MORE

Adani Ports becomes part of DJSI Emerging Markets Index; stock soars 7%

Shares of Adani Ports and Special Economic Zone (APSEZ) jumped 7 per cent to Rs 401.85 on the BSE on Tuesday after the company said it ranked 14th in the transportation and transportation infrastructure sector of Dow Jones Sustainability Emerging Markets Index, 2020. APSEZ is the only company from India to have been included in this sector. READ MORE

Top gainers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
FUTURE RETAIL 86.90 10.00
VA TECH WABAG 200.65 7.59
SUNTECK REALTY 304.95 6.91
ADANI PORTS 399.75 6.57
HEG 869.35 6.17
» More on Top Gainers

Granules India shares gain 5%, hit record high on heavy volumes

Shares of Granules India hit a record high of Rs 417 after rising 5 per cent on the BSE on Tuesday on the back of heavy volumes. The pharmaceutical company's stock surpassed its previous high of Rs 406.90, touched on September 29, 2020. At 10:44 am, the stock was trading 3 per cent higher at Rs 412 on the BSE, as compared to 0.74 per cent rise in the S&P BSE Sensex. The trading volumes on the counter more-than-doubled with a combined 2.23 million equity shares changing hands on the NSE and BSE, so far. READ MORE

Mahindra & Mahindra hits 52-week high on strong business outlook

Shares of Mahindra & Mahindra (M&M) hit a 52-week high of Rs 731, up 4 per cent on the BSE in the early morning trade on Tuesday on the expectation of a strong business outlook. In the past one week, the stock has outperformed the market by gaining 14 per cent, as compared to a one per cent rise in the S&P BSE Sensex. READ MORE

Negative real rates could drive investors towards high-yield stocks

Real rates in India have slipped into the negative zone with inflation above 7 per cent and yield on the benchmark 10-year government security (g-sec) well below 6 per cent. This could drive many investors towards stocks that offer high-dividend yield, say analysts. “Over the past one year, as interest rates continued to dip and inflation rose, real interest rate has dipped into the negative territory which has improved prospects for high dividend yield stocks. High dividend yield stocks appear attractive as their yields are now comparable to other fixed-income instruments while having the added advantage of ‘inflation hedge’ characteristics of stocks as an asset class,” said Vinod Karki and Siddharth Gupta, analysts at ICICI Securities in a note on Monday. READ MORE

BROKERAGE VIEW | Prabhudas Lilladher on financial sector

We reckon NBFCs conversion into banks would imply limited scope, stringent norms and lower returns. Unlike previous occasion, permit for industrial houses to opt for banking license and increased cap on promoter stake increase the scope of eligibility. While this would imply significant changes to the Banking Regulation Act, the details of which are awaited by most, licenses are not likely to  come easy especially to the corporate houses. Conversion into a bank will be a call on trade-off between operational flexibility and a gradual liability franchise built which NBFCs have to take. While corporate-led diversified NBFC models (likes of LTFH, PEL, ABCapital, Tata Capital) would be greater beneficiaries of such conversion, core business focused NBFCs would maintain the original format. We maintain positive bias towards quality NBFCs; viz, SBICARD, MUTH, HDFC, CIFC, BAF.

Bharti Infratel up 28% in 3 days on completion of Indus Tower merger deal

Shares of Bharti Infratel surged 9 per cent to Rs 238 on the BSE on Tuesday, rallying 28 per cent in the past three trading days after the company completed merger with Indus Towers to create a mega tower company (renamed Indus Towers). The stock hit a 52-week high of Rs 295.75 in December 2019. READ MORE 


Buying jewel in the crown: BPCL a revenue churner, not a drain on finances

Even a week after the EoI deadline ended on November 16, all that North Block has to say is that it has received “multiple” offers for BPCL. Bid sensitivity notwithstanding, shrouding the mere submission of EoI in secrecy defies logic. To add to it, the only company or investor that officially acknowledged showing interest is Anil Agarwal’s Vedanta. READ MORE 


BSE Midcap index up nearly 0.5%


EXPLAINED:: What justified the delisting of Lakshmi Vilas Bank's shares

The Reserve Bank of India’s (RBI’s) stand to delist the shares of beleaguered Lakshmi Vilas Bank (LVB) has invoked negative responses from many sections. The key losers are shareholders or investors, as the stock has been locked in the lower circuit for the fourth consecutive day. From Rs 15.7 per share last Tuesday, the stock has halved to Rs 8.10 now. While investors’ angst is understandable, one needs to understand the possible logic behind such a move. READ MORE

Auto stocks in focus

COMPANY LATEST(rs) CHG(%)
TATA MOTORS 173.80 1.88
ASHOK LEYLAND 91.30 0.11
TATA MOTORS-DVR 74.00 1.79
M & M 719.70 2.05
MARUTI SUZUKI 7193.15 2.96
» More

Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 10.57 1.63
GMR INFRA. 26.85 1.51
EQUITAS HOLDINGS 70.15 10.65
J & K BANK 26.67 8.55
B H E L 30.85 -1.59
» More on Most Active Volume

SECTOR WATCH:: Nifty Bank index up 1%


Top gainers on the BSE at this hour


SENSEX HITS RECORD HIGH


Thyrocare up 1%


Axis Bank gains in trade after Jefferies raises target price


Biocon trades in the green

>> Biocon has entered into an agreement on 21 November 2020 for the acquisition of a 26% equity stake on a fully diluted basis in Hinduja Renewables Two (HRTPL), a special purpose vehicle formed for the purpose of power generation and developing a captive power plant as per Electricity laws.


Ingersoll Rand slumps 6%

>> Ingersoll-Rand INC proposes to sell up to 1,425,798 equity shares (representing up to 4.52 per cent of the total issued and paid-up equity shares capital of the company on November 24 and 25. The floor price for the sale will be Rs 578.6 per equity share.


HDFC Bank up 1.5%


Sectoral trends at Open


NIFTY HITS RECORD HIGH, TOPS 13,000


Sensex Heatmap at Open


Opening Bell


Commodity Heatmap


Top gainers and losers on the S&P BSE Sensex at Pre-open


NIFTY TOPS 13,000 IN PRE-OPEN


Markets at Pre-open


BROKERAGE VIEW :: Jefferies on Axis Bank

Maintains 'Buy' | TP: Rs 700 (from Rs 610)

>> Overall credit trends are improving

>> RBI's action in LVB case can increase comptetition

>> It may allow simpler transaction with Max and need to merge NBFC subsidiary

>> See earnings recovery FY22 onwards

BROKERAGE VIEW :: CLSA on HDFC Bank

Reiterates 'Buy' | TP: Rs 1,700 (from Rs 1,525)

>> Macro environment has improved considerably 

>> Better use of data analytics leading to lower retail stress

>> CEO transition has been smooth

>> In the medium-term, opex efficiency has scope to improve

Stocks to watch today

IT stocks: IT spending in India is projected to rise 6 per cent to $81.9 billion in 2021 compared to this year on the back of growth across segments like enterprise software and IT services, research firm Gartner said on Monday.
 
Reliance Industries: The company on Monday informed that Jio Platforms Limited has received the subscription amount of Rs 33,737 crore from Google International LLC (a wholly owned subsidiary of Google LLC).
 
AU Small Finance Bank on Monday sold 35 lakh shares of Aavas Financiers Ltd worth Rs 530 crore through an open market transaction. READ MORE  


BROKERAGE VIEW :: CLSA on L&T

Reiterates 'Buy' | TP: Rs 1,400

>> Focus on large, complex infra projects ahs paid-off

>> Company has bagged large infra projects in Q3, especially the bullet train project

>> New order pipeline is decent at Rs 6 trillion in H2

>> Focus is back on RoE which should lead to more pay-outs

>> Co is a good proxy for domestic capex

BROKERAGE VIEW :: Prabhudas Lilladher on VIP Industries

CMP: Rs 337 | TP: Rs 384 | Rating: ACCUMULATE 

>> While we expect EBITDA loss to widen in FY21E to Rs844mn (Rs719mn earlier) and cut our FY22E EBITDA estimates by 9% due to realignment in our sales/GM estimates, our FY23E EBITDA estimates are broadly intact as we expect 280 bps margin expansion over 3 years because of permanent reset in cost base.

>> We believe early signs of green-shoots are evident given 1) 34% MoM rise in domestic passenger traffic in October with daily departures at ~51-52% of pre-COVID capacity and 2) gradual unlocking of the economy. Consequently, we raise our target P/E multiple to 28x (earlier 25x; 5/10 years average at 29x/28x respectively) and increase our TP to Rs384 (Rs333 earlier). Retain ACCUMULATE.

BROKERAGE VIEW :: MOFSL on Engineer's India

CMP: Rs 73 | TP: Rs 89 (+21%) | Reco: Buy

>> On account of rising ramp-up in execution, we increase our FY21E EPS by 8%, with FY22E/FY23E EPS estimates unchanged, and maintain our Buy rating with a TP of Rs 89/share. We forecast a revenue/EBITDA/PAT CAGR of -2%/0/5% over FY20-23E. We expect a reversal of the revenue mix in favor of the Consultancy segment to aid profitability. We maintain a Buy, with a TP of INR89, assigning INR50 to the core business (10x FY22E core EPS), to which we add INR39 for cash on its books

BROKERAGE VIEW :: MOFSL on M&M

CMP: Rs 705 | TP: Rs 830 (+18%) | Reco: Buy 

>> We have not built in any benefits from imminent launches or product development from MM's recent JV with Ford India. We estimate Passenger UV volumes to decline by 1% CAGR over FY20-23E and LCV volumes to grow by 12% CAGR. We see the possibility of upside risk to both SUV and LCV volumes and margins.

>> While MM’s core business would recover faster, the focus on tightening capital allocation could act as a re-rating catalyst. Hence, we see twin levers of EPS growth and re-rating.

>> MM’s valuations are still at a good discount to its five-year average (which captures both pain points of deterioration in the UV market share and subsidiaries' performance), despite reasonable progress on correction of capital allocation. Implied core P/E for MM is 13.5x/11.8x FY22E/FY23E EPS. Maintain Buy with a TP of INR830/share (Dec-22E SoTP), implying core P/E of ~15x at our TP (v/s five-year average core P/E of ~15.9x and 10-year average of ~14.3x)

Stock picks by Nilesh Jain of Anand Rathi

BUY WIPRO | TARGET: Rs 375 | STOP LOSS: Rs 345
 
The stock has provided a breakout from a 1-month consolidation pattern which looks like a rectangle formation on the daily chart. The MACD indicator has provided a fresh buy crossover and RSI has also reversed from the oversold territory. It is also trading well above its short-term and long-term moving averages. Based on the above rationale the stock may attempt to fill the gap which is placed at 375 levels. READ MORE

Bulk deals on BSE as on Monday

Bulk deals on NSE as on Monday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil holds near three-month highs as vaccines stoke demand recovery hopes

>> Oil prices held gains on Tuesday as news of a third promising vaccine candidate spurred hopes of a quick recovery in oil demand, while US President-elect Joe Biden received the go-ahead to begin his presidential transition.
 
>> Brent crude futures rose 3 cents, or 0.1%, to $46.09 a barre, while U.S. West Texas Intermediate crude added 11 cents, or 0.3%, to $43.17 a barrel. Both benchmarks settled up about 2% on Monday after gaining about 5% last week.

(Source: Reuters)

SGX Nifty hints at positive start

>> At 8:25 am, the index was at 12,962 levels, up 11 points

Asian markets check

Source: Reuters


Wall Street ends higher in a choppy trade

Source: Reuters


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