A decent recovery in the final hour of the trade helped the Indian markets extend their winning streak to the sixth straight day, ahead of tomorrow's December series derivative contracts expiry.
The benchmark indices opened higher for the sixth straight session, logging their fresh all-time highs, before quickly paring the gains and spending rest of the session fluctuating between gains and losses.
The S&P BSE Sensex ended the session 133 points, or 0.28 per cent, higher at 47,746. The index hit an intra-day high and low of 47,808 and 47,358, respectively. The broader Nifty50 index ended the session at 13,981. The index came close to hitting the 14,000-mark in intra-day, but could only hit a high of 13,997.
Out of the 30 Sensex constituents, 18 ended the day in green. UltraTech Cement (up 4%) was the top Sensex gainer, followed by Bajaj Finance and Maruti Suzuki (both up 2%). On the other hand, IndusInd Bank and Sun Pharma fell 1 per cent each.
The Nifty sectoral indices ended mixed, with Nifty Metal and Nifty Auto indexes, both up 1 per cent, leading the list of gainers.
In the broader markets, the S&P BSE MidCap and SmallCap indexes ended 0.5 and 0.37 per cent higher, respectively.
European stocks edged higher on Wednesday as Britain approved a COVID-19 vaccine developed by AstraZeneca and Oxford University, while bets of more U.S. fiscal aid and massive vaccination efforts spurred hopes of a strong global economic recovery next year.
The pan-European STOXX 600 rose 0.1 per cent, hovering near a 10-month high hit in the previous session. Most markets in the region were subdued due to thin volumes in a holiday-shortened week. The German DAX was flat, while French and Spanish stocks slipped 0.1 per cent each.
In Asian trading, MSCI’s gauge of Asia-Pacific shares excluding Japan rose 1.2 per cent to hit a record high, led by gains in Chinese shares. Japan’s Nikkei share average, however, lost 0.45 per cent on its last trading day of 2020.
MARKET QUOTE || S Ranganathan, Head of Research at LKP Securities
Bulls stepped on the Accelerator in Wednesday Trade to end the day just shy of the 14k mark led by Cement & Steel stocks on hopes of higher spend on Infrastructure. Vaccine Approval in the UK and hopes of approval back home led strength to the rally despite profit booking seen across several stocks
MARKET QUOTE || Vinod Nair, Head of Research at Geojit Financial services
Domestic sentiment is upbeat, expecting a nod for Oxford-AstraZeneca Covid vaccine usage in India. Growth sectors like Auto, Realty and Metal led the rally while defensives like pharma continued to remain under pressure. Although the market is at its most expensive valuation level, FPIs continue to pump in funds and roll the Indian market higher on a daily basis
India Cements advances 13% on heavy volumes; stock hits 34-month high
Shares of India Cements zoomed 13 per cent, hitting 34-month high of Rs 163.80 on the BSE on Wednesday on the back of heavy volumes in an otherwise range-bound market. The stock of the cement manufacturer surpassed its previous high of Rs 164, hit on November 26, 2020. It was trading at its highest level since February 2018. READ MORE
Economy to recover in 2021, but output may take another year to regain loss
There is broad consensus among experts that the economy will revert to marginal growth in the first quarter of the coming calendar year 2021, though opinions are varied on whether the economy will continue to contract or expand to a small extent in the fourth quarter of Calendar 2020. That the economy is on a recovery path was substantiated by a better-than-expected performance in the third quarter of Calendar 2020 (second quarter of FY21). READ MORE
Global Market Update | European stocks inch higher as AstraZeneca gains on UK vaccine approval
European stocks edged higher on Wednesday as Britain approved a COVID-19 vaccine developed by AstraZeneca and Oxford University, while bets of more U.S. fiscal aid and massive vaccination efforts spurred hopes of a strong global economic recovery next year.The pan-European STOXX 600 rose 0.1%, hovering near a 10-month high hit in the previous session. Most markets in the region were subdued due to thin volumes in a holiday-shortened week. The German DAX was flat, while French and Spanish stocks slipped 0.1% each. (Source: Reuters)
BUZZING STOCK :: Jindal Stainless stock slips 3%
The Boards of Jindal Stainless Limited (JSL) and Jindal Stainless (Hisar) Limited (JSHL) today approved the merger of JSHL into JSL in a share swap ratio of 1:1.95. Post the merger, JSL will be the single listed entity on the stock exchanges with promoter holding at 57 per cent, and remaining 43 percent by the public.
This pharma stock has zoomed 567% in 40 trading days post re-listing
Shares of Orchid Pharma were locked in upper circuit for the 40th straight trading day, up 5 per cent at Rs 120.13 on the BSE on Wednesday. The stock has zoomed 567 per cent from the level of Rs 18, since its relisting on November 3, 2020. Till 12:35 pm, a combined only 83 equity shares had changed hands and there were pending buy orders for 135,000 shares on the BSE and NSE, the exchange data shows. READ MORE
Zydus Cadila receives DCGI nod for NAFLD drug in India
Drug firm Zydus Cadila on Wednesday said it has received approval from the Drug Controller General of India (DCGI) for Saroglitazar Mg, used for the treatment of non-alcoholic fatty liver disease (NAFLD), in the country. The Drug Controller General of India (DCGI) has approved the new drug application (NDA) for Saroglitazar Mg for the treatment of non-alcoholic fatty liver disease (NAFLD) in India, Zydus Cadila said in a regulatory filing.
NEWS ALERT | Cabinet briefing at 3 pm today
-- I&B Minister Prakash Javdekar, Oil Minister Dharmendra Pradhan, and DV Sadananda Gowda on cabinet meeting
JMC Projects bags orders worth Rs 698 cr
JMC Projects on Wednesday said it has bagged orders worth Rs 698 crore in the domestic market. In a filing to the BSE, the company said it has won orders for building projects in South India worth Rs 698 crore. The company's CEO and Deputy Managing Director S K Tripathi said: "Our order inflows for the current year has crossed Rs 6,700 crore. We remain confident to achieve our targeted numbers for the financial year 2020-21." JMC Projects (India) is a subsidiary of Kalpataru Power Transmission. (Text Source: PTI)
NEWS ALERT | Govt declares Sarda Energy successful bidder for Gare-Palma-IV/7 & Sahapur West coal mines
Shares of Astrazeneca Pharma India jump over 3% on Covid vaccine approval in UK
MARKET UPDATE:: Sensex at day's low
NEWS FLASH :: Oxford University/Astrazeneca vaccine authorised by UK
NEWS FLASH :: Maharashtra govt extends lockdown restrictions in the state till 31st January 2021
Voda Idea, HDFC Bank, Britannia: Stocks that can give 30% return in 2021
HDFC Bank Limited (HDFCBANK): After crossing the significant resistance in the range of Rs 1,300 to Rs 1,350 levels, the counter is set to rise towards Rs 2,000 levels from a medium-term perspective. The current levels are indicating a consolidation in the range of Rs 1,350 to Rs 1,470 levels. The underneath trend exhibits an upside bias that may trigger a strong move. One can see the sluggish move on the volume structure, yet the stock is not showing weakness rather attempting to scale higher, this scenario indeed reflects a firm strength of the counter, as per the weekly chart. READ MORE
Icra upgrades financial ratings of Tata Consumer Products to 'AAA'
ICRA has upgraded the rating for long-term financial instruments of Tata Consumer Products worth Rs 350 crore to AAA with a stable outlook from AA-plus. At the same time, it reaffirmed the rating for short-term instruments worth Rs 715 crore at A1-plus. ICRA also upgraded the company's fund-based working capital facilities at AAA with a stable outlook from AA-plus earlier. READ MORE
Union Cabinet is likely to take up matter on Ethanol procurement from grains; Govt may also consider extension of Ethanol production, according to a report
SAIL hits 2-year high, zooms 100% in 2 months on strong earnings outlook
Shares of Steel Authority of India (SAIL) rose 5 per cent to hit an over two-year high of Rs 67.85 on the BSE in Wednesday's session amid expectations of further improvement in performance due to the realisation of uptick in the domestic market and progressively lower proportion of exports. The stock of the state-owned company was trading at its highest level since November 2018. Analysts at Edelweiss Broking expect SAIL’s performance to improve further driven by realisation uptick, volume growth and iron ore sales providing additional revenue stream. READ MORE
City Union Bank: Corrections may present good entry points to investors
With every disruption in the banking sector, whether asset quality-led or caused by a change in preference, the industry has reinvented itself to offer new products or to diversify into new territories. The 115-year-old Tamil Nadu-headquartered City Union Bank (CUB), however, is an exception. After starting as an outfit catering to small businesses, CUB remains committed to the segment and draws roughly 72 per cent of business from Tamil Nadu, and nearly 90 per cent from southern India. READ MORE
Bank asset quality may see sharp deterioration post-moratorium: RBI
The banking and non-banking financial sectors in India showed resilience in 2019-20, but with nearly 40 per cent of the outstanding loans under a moratorium, the system may face a sharp deterioration in asset quality, the Reserve Bank of India’s (RBI’s) annual publication titled “Trend and Progress of Banking in India”, released on Tuesday, said. READ MORE
Metal index moves back into the green, rises 0.37%
RIL off day's low, crosses above 2,000 level
Adani Gas hits new high; stock zooms 408% from March 2020 low
Shares of Adani Gas hit a new high of Rs 390, up 4 per cent on the BSE in intra-day trade on Wednesday in otherwise range-bound market. The stock of Adani Group integrated oil & gas company surpassed its previous high of Rs 382.50 touched on December 3, 2020. In comparison, the S&P BSE Sensex was up 0.04 per cent at 47,633 levels at 10:58 am. READ MORE
To extend the temporary suspension of flights to & from UK till Jan 7: Aviation Minister
Stock Idea by Geojit Financial: Bharat Electronics
New defence acquisition policy 2020, is expected to benefit domestic manufactures given higher indigenous content requirement in various categories, restrictions of imports & stricter timelines for execution. The current order back log is Rs 52,700 cr (4.3x FY20 sales), which provides strong earning visibility for the next 3 years. Order inflow for H1FY21 was Rs 5,000 cr, while order pipeline is expected to improve. Given higher indigenous content in BEL’s products EBITDA margin is expected to be in the range ~20%. We continue to remain constructive on BEL in long term given its niche technological & execution capabilities and government focus on indigenisation. Given strong order book visibility and stable order inflow, we maintain “Buy” rating on the stock. We value BEL at 15x as we roll forward to FY23E with target price of Rs138.
Nifty IT among sectoral gainers on NSE, rises 0.23%
IFGL Refractories hits 52-week high on rating upgrade
Shares of IFGL Refractories surged 9 per cent in intraday trade on the BSE on Wednesday to hit a 52-week high of Rs 267 after the company said rating agency ICRA has upgraded credit rating assigned to the company's Rs 173 crore line of credit with a stable outlook. "Based on a review of the latest developments, the rating committee of ICRA, after due consideration, has upgraded the long-term rating to (ICRA) AA- from (ICRA) A+ assigned to the Rs 173 crore line of credit (LOC) of the company. The outlook on the long-term rating is 'Stable'. The short-term rating for the captioned LOC has been reaffirmed at 1 ICRA AI+,” ICRA said. READ MORE
BUZZING STOCK:: India Cements surges 5%
After a stupendous rally in market, returns may moderate in 2021: Experts
After a stupendous rally in the market from March lows, experts say returns may moderate in the new year. The market's trajectory in the calendar year 2021 (CY21), they believe, will be guided more by developments surrounding Covid-19 and its vaccine, oil prices, global central bank policies, and the US dollar's movement at the global level. READ MORE
Rupee opens higher at 73.36/$ vs Tuesday's close of 73.43 against the US dollar
Nifty Auto index erases losses, rises 0.42%
Coromandel slips 6% after block deals
Shares of Coromandel International slipped 6 per cent to Rs 802 on the BSE on Wednesday after more than 2 per cent stake of the fertilser company changed hands in opening deals. At 09:15 am, around 6.51 million equity shares, representing 2.2 per cent of total equity of Coromandel International, had changed hands via block deal on the BSE, the exchange data shows. READ MORE
Paisalo shares tank over 7% after Elara India Opportunities Fund cut stake in firm
Elara India Opportunities Fund reduced stake in Paisalo Digital to 1.76 per cent from 4.37 per cent earlier by selling 2.6 per cent stake via open market transaction.
BUZZING STOCK :: EID Parry India shares rise 7%
EID Parry India, promoter of Coromandel International is looking to sell up to 2% stake or 58.5 lakh shares of the fertiliser and chemicals company through open market on Wednesday to raise upto Rs 483 crore, according to a term sheet issued by Kotak Securities, a media report said.
Bank stocks, RIL among top Sensex drags in early trade
Sensex reverses opening gains, slips 150 points
MARKET VIEW | V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The bull run continued for the 5th consecutive day on the back of FII flows which show no signs of abating. In fact, FII inflows may accelerate, going forward, since the weakness in the dollar continues with the dollar index dipping below 90. How long this inflows will continue? How high the indices can go? These are questions which cannot be answered with certainty now. Investors need to be cautious since there is no comfort in valuations. The latest RBI report warns of the sharp deterioration in the asset quality of banks post-moratorium. This is likely to impact banking stocks, particularly the PSU bank stocks which have been rallying recently.
Sector Watch | Only Nifty FMCG and Nifty IT in the green
Top Sensex gainers & losers at opening tick
OPENING BELL :: Sensex gains 40 points, Nifty trades flat at 13,943
NSE Nifty trades at 13,980, up 0.35% in pre-open trade
Pre-open Session: Sensex trades 150 points higher
Stocks to watch: JSPL, Jindal Stainless, HDFC Bank, IIFL Securities
JSPL: Jindal Steel and Power Ltd (JSPL) on Tuesday said it has received the 'regular rail supplier' status from the Indian Railways.
Paisalo Digital: Elara India Opportunities Fund reduced stake in Paisalo Digital to 1.76 per cent from 4.37 per cent earlier by selling 2.6 per cent stake via open market transaction. READ MORE
FIIs turn net buyers to the tune of Rs 2,350 crore; DIIs sell stocks worth Rs 2,010
Oil rises on hopes of recovery in fuel demand
Oil prices gained more ground on Wednesday as a U.S. coronavirus fiscal aid package and expectations of global economic recovery lifted hopes for higher fuel demand. U.S. West Texas Intermediate (WTI) crude futures rose 27 cents, or 0.6%, to $48.27 a barrel, as of 0114 GMT, while Brent crude futures added 24 cents, or 0.5%, to $51.33 a barrel. (Source: Reuters)
SGX Nifty trades near 14,000
Nifty futures on the SGX were trading 63 points up at 13,996, indicating possibility of indices hitting record highs in opening trade.
Asian shares pause recent rally
Asian equities too retreated in early Wednesday trading tracking weakness in US equities. Australian shares lost 0.79% while Japan’s Nikkei share average lost 0.03%. South Korea’s Kospi index, however, gained 0.28%.
Meanwhile, news that the United States has detected its first-known case of a highly infectious coronavirus variant could give investors more reason to cash in gains. (Source: Reuters)
Wall St dips from record levels
U.S. stocks edged lower on Tuesday in choppy trading after hitting record highs, as investors worried about the path of economic reopening and whether the Senate would authorize additional pandemic aid checks. Modest gains in early trading brought stocks to an intraday record, but the advance evaporated after Republicans blocked an attempt by Democrats to increase direct payments to individuals to $2,000 from $600. The Dow Jones Industrial Average fell 0.22%, the S&P 500 lost 0.22% and the Nasdaq Composite dropped 0.38%. (Source: Reuters)