In the broader market, the S&P BSE MidCap index outperformed the frontline indices as it gained 0.42 per cent.
After remaining in the negative territory for most part of the session, the domestic equity market managed to settle flat with a positive bias on Tuesday amid buying in select financial and information technology (IT) counters.
The S&P BSE Sensex ended at 46,263, up 10 points, or 0.02 per cent while NSE's Nifty settled at 13,568, up 10 points, or 0.07 per cent. During the session, Sensex hit a high and low of 46,350.30 and 45,841.67 levels, respectively.
HDFC, HDFC Bank, Bajaj Finance, Bajaj Finserv, and HCL Tech were the major contributors to the Sensex's recovery today. Bajaj Finance (up 4.7 per cent) was the biggest gainer on Sensex while HUL (down over 2 per cent) emerged as the top loser.
Moreover, Bajaj Finance entered the elite club of companies with a market capitalisation (market-cap) of Rs 3 trillion after the company's stock price hit a new high. The stock ended at Rs 5,128 on the BSE.
Volatilty index, India VIX, ended at 19.3 levels, down 0.29 per cent.
In the broader market, the S&P BSE MidCap index outperformed the frontline indices as it gained 0.42 per cent to 17,733.87 while SmallCap index ended flat at 17,696 points.
Among sectoral indices, Nifty Media gained the most - up 1.79 per cent, followed by Nifty Metal and Nifty Financial Services indices (both up 0.77 per cent).
Asian stocks retreated on Tuesday as worries about increasing Covid-19 deaths and lockdowns overshadowed optimism about the roll-out of coronavirus vaccinations, just days after indexes hit record highs.
In Europe, shares traded flat as rising Covid cases forced tighter curbs across the continent, denting optimism from vaccine roll-outs and hopes of an eventual Brexit trade deal.
(With inputs from Reuters)
MARKET VIEW | Vinod Nair, Head of Research at Geojit Financial
Indian market opened with a negative trend following the weak sentiments of the Asian market, but a strong recovery happened as European market opened positively ahead of policy meetings. The liquidity-driven rally, which has been heavily depending on foreign funds, will bet a lot on the ongoing FOMC policy meeting and a final decision will be announced tomorrow, and the US stimulus package to be finalized this week. The outcome of these events are expected to be positive, triggering further positivity in the market.
Tech View | Uncertainty likely ahead: Rohit Singre, senior technical analyst at LKP Securities
Index showed a strong recovery from day's low and managed to close the session on a positive note with minimal gains and formed a Doji candle for the fourth consecutive session, hinting uncertainty going ahead. The index has formed a good base near 13,500 zone. If index holds above the said levels, we may see it march towards its immediate resistance zone of 13,600. And if it manages to sustain above 13,600, then we may see a quick move towards 13,700 zone.
Burger King India shares rally another 20% after stellar market debut
Majesco wipes off most gains, ends flat
Shares of Majesco ended 0.88 per cent up at Rs 982.20 on BSE after hitting fresh record highs in intraday trade today. The stock had rallied following after the company said its board has approved payment of interim dividend at the rate of 19,480 per cent i.e. Rs 974 per equity share of face value of Rs 5 each for the financial year 2020-21.
Advance-decline ratio at nearly 1:1 on BSE
276 stocks hit 52-week highs, 40 at 52-week lows
414 scrips touched upper circuit limits; 177 hit lower circuits
Sectoral Trend: Nifty PSU Bank index bleeds the most while Nifty Media shines
Broader markets outperform benchmark
Nifty Midcap 100 index rose 0.47 per cent while Nifty Smallcap 100 index added 0.19 per cent as against a 0.07 per cent rise in Nifty. Meanwhile, broadest index on NSE, Nifty 500 moved in tandem with bechmark Nifty, and ended 0.08 per cent higher.
HDFC duo, Bajaj Finance, Bajaj Finserv and select IT stocks among top Sensex contributors
Sensex Heatmap | Top gainers & losers
15 of 30 Sensex stocks ended in the green
Bajaj Finance, Bajaj Finserv top Sensex gainers, rise up to 5%
HUL, Nestle worst laggards, down 2% each
Sensex recoups 421-point loss, ends 9.71 points or 0.02 per cent up at 46,263.17; Nifty settles at 13,567.85, up 9.70 points or 0.07 per cent
BROKERAGE VIEW | Nirmal Bang Securities on Tyre sector
We expect healthy overall growth in tyre demand over FY21-23, as demand from original equipment manufacturers (OEMs) is expected to grow at a strong 18-20% CAGR during the same period. Higher demand will be seen across all the automobile segments over a pandemic-hit low base of FY21 amid expectations of Covid vaccines and improvement in the demand cycle amid improving economy and consumer sentiments. We are already seeing a ‘V’ shaped recovery in most of the Auto segments and we expect OEM demand growth from PVs, 2Ws, and Tractor segments in the medium term and from CVs, PVs, and 2Ws in the long term. Replacement demand for tyres has been strong whereas OEM sales have been tepid for the last 18-24 months. Replacement demand is expected to remain strong in the near term and eventually, we expect it to normalise in the medium to long term period.
DHFL freezes at 5% lower circuit for second straight day on profit booking
Shares of Dewan Housing Finance Corporation (DHFL) were locked in the lower circuit for second straight day, down 5 per cent at Rs 37.70, on the BSE on Tuesday amid profit booking after media reports suggested that the US-based asset management firm Oaktree Capital has emerged as the highest bidder in a revised round of bidding for the troubled mortgage lender. READ MORE
Top gainers on the BSE at this hour
NEWS ALERT :: UK PM Boris Johnson accepts India’s invitation to be Chief Guest on Republic Day
The presence of PM Boris Johnson as the chief guest at Republic Day 2021 would be in a way symbolic of a new era, a new phase of our relationship: EAM Dr S Jaishankar pic.twitter.com/kgwNCyCQ6t
S&P revises India's FY21 GDP contraction forecast to 7.7% from 9% earlier
S&P Global Ratings on Tuesday raised India's growth projection for the current fiscal to (-) 7.7 per cent from (-) 9 per cent estimated earlier on rising demand and falling COVID infection rates. "Rising demand and falling infection rates have tempered our expectation of COVID's hit on the Indian economy. S&P Global Ratings has revised real GDP growth to negative 7.7 per cent for the year ending March 2021, from negative 9 per cent previously," S&P said in a statement. READ MORE
Warning signs :: StanChart lists 8 big market risks in 2021
A pandemic wasn’t on too many lists last year, but global markets have largely recovered from the shock, helped by emergency fiscal- and monetary action. Investors have found some consensus on a recovery in growth and inflation heading into the new year, driving global yield curves steeper, rallies in corporate bonds and a slide in the U. S. dollar. READ MORE
BUZZING STOCK:: Zee Entertainment surges 9% from day's low
Buzzing Stock | DHFL shares hit 5% lower circuit
Shares of Dewan Housing Finance Corporation (DHFL) hit 5 per cent lower circuit limit on Tuesday. The stock was down 4.92 per cent at Rs 37.70 on BSE.
US-based asset management fund Oaktree Capital has emerged as the highest bidder for bankrupt housing finance firm DHFL by making an offer of Rs 36,646 crore for the entire company.
MFI stocks make a comeback after two-year hiatus
Ever since the Bharat Financial Inclusion’s acquisition by IndusInd Bank came through in 2018, the interest in the microfinance segment from an investment perspective waned off. While Equitas Holding and Ujjivan Financial Services were available as options, broiled in corporate structure issues, the merits in investing in microfinance (MFI) stock thinned over time. READ MORE
Borosil Renewables hits fresh record high, zooms 39% in two days
In the past two trading days, the stock of the houseware manufacturer has zoomed 39 per cent as the government is set to levy duty at 9.71 per cent on textured tempered coated or uncoated glass imports (of which the company is the sole manufacturer in India) from Malaysia. READ MORE
Market Watch | Sensex wipes off over 400 points loss, comes back into the green
BSE barometer Sensex erased 470-point losses from day's low to trade in the green in afternoon session on Tuesday on the back of gains in financials and bank stocks. HDFC twins and Bajaj Finance were among the top index contributors.
Sales uptick, lower debt to help in Aditya Birla Fashion recovery
A sequential recovery in the second quarter, cost rationalization, and deleveraging have helped the Aditya Birla Fashion and Retail (ABFRL) stock gain over 20 per cent since the beginning of October. After an 85 per cent fall in revenue to Rs 323 crore in the June quarter (Q1) due to the lockdown, sales recovered on a sequential basis to Rs 1,028 crore in Q2. READ MORE
Planning to buy mid, small-caps? Here's how to choose the winners
Analysts expect outperformance to last for the next one-two years, thanks to a rebound in the economic growth, influx of new investors in the market and a shift in investing trends from the mutual funds to direct equity.
"The return expectations from the large-cap universe have to be lowered going ahead. At best, large-caps can offer 8-10 per cent return whereas the right mid and small-cap stocks can offer as much as 20-30 per cent gains. Over the next one-two years, the small-caps will likely outperform their larger peers," says A K Prabhakar, head of research at IDBI Capital. READ MORE
Asian markets check
Asian stocks retreated on Tuesday as worries about increasing COVID-19 deaths and lockdowns overshadowed optimism about the roll-out of coronavirus vaccinations, just days after indexes hit record highs.
Most Asian markets retreated, with MSCI’s index of Asia-Pacific shares outside Japan falling 0.6% to 637.8, the lowest in more than a week after having hit a string of record highs in recent weeks.
Chinese stocks eased 0.3 per cent and Hong Kong lost 0.9 per cent. Markets in Japan and South Korea, both grappling with surging infection numbers and growing public frustration, slipped 0.4 per cent and 0.5 per cent. Australian stocks fell 0.4 per cent, pulled down by heavyweight miners on fears of higher regulatory scrutiny over surging iron ore prices in top consumer, China.
IPO Update :: Mrs Bector's Food IPO subscribed nearly 2x till 1:30 pm on Day 1
MARKET UPDATE:: S&P BSE SmallCap index turns positive
NEWS ALERT :: Cyient, Decipher sign MoU to support the global rollout of key cloud mining platform
>> The platform will help streamline tailings and rehabilitation monitoring in the industry
>> Collaboration will enable global mining players to meet regulatory compliance and monitoring guidelines.
Why a torrent of foreign funds threatens India's tight grip on the rupee
A relentless torrent of funds rushing into India’s markets may tip the central bank’s delicate balancing act in 2021. For most of this year, the Reserve Bank of India has capped currency gains as global investors poured around $50 billion into stocks and stakes in companies. This has boosted rupee liquidity in a banking system that’s already flush with cash from the RBI’s stimulus measures. READ MORE
Most active stocks in volume terms
BROKERAGE VIEW :: JM Financials on Oil and Gas sector
We revise our FY22-23 Brent assumption to USD 55/bbl (from USD50/bbl) as positive Covid-19 vaccine developments are fuelling hopes of a quicker-than-previously-expected recovery in oil demand. Also, stringent compliance by OPEC+ has expedited normalisation of excess oil inventory. Hence, we upgrade our FY22 PAT estimates for ONGC/Oil India by 30%/14%.
ONGC and Oil India could also benefit from potential deregulation/hike in domestic gas prices. Hence, we upgrade our TP for ONGC to INR 120/share and for Oil India to INR 130/share on the following: a) a Brent-linked sharp earnings upgrade and b) a reduction in P/E valuation discount to the historical average due to improving earnings visibility. Hence, we upgrade ONGC and Oil India as tactical BUYs on rising crude price. ONGC is our preferred play due to its relatively better production growth visibility and higher leverage to crude price.
MARKET UPDATE:: Sensex off day's low
India is the world's best market for portfolio disclosure, finds study
The two countries earned top grades for their robust disclosure regimes across six categories including fees, transparency of fund holdings and issues such as conflicts of interest. The report covering 26 markets across North America, Europe, Asia and Africa singled out Australia as a notable laggard. READ MORE
Pulling out from equity funds: When is it okay and when it isn't?
Investors redeemed Rs 12,917 crore from equity mutual funds (MFs) in November, and nearly Rs 23,000 crore has moved out over the past five months. When is it okay to pull money out? One, if you need the money. “Many people have suffered salary cuts and job losses.
When people have needs, they tend to pull money out, irrespective of the valuation level,” says Rajeev Thakkar, chief investment officer, PPFAS Mutual Fund. READ MORE
Facebook Fuel for India 2020 :: Jio could maintain 99.99% availability of the network across the country through the pandemic, says Mukesh Ambani
>> Ambani hails PM Modi's Digital India vision to be credited for India's digital achievements so far.
>> He also thanks Zuckerberg for India's largest ever FDI in history so far, and the importance of the Facebook-Jio partnership in India and on the global sense.
Facebook Fuel for India 2020 :: Mukesh Ambani says Zuckerberg as a role model for many entrepreneurs in India
>> Indian organisations are leading the way in digital inclusions for the world, says Mark Zuckerberg
Top losers on the BSE at this hour
Adani Ports, Bajaj Finance: These 62 stocks in Nifty500 promise smart gains
As per the technical charts, among the Nifty 500 stocks, nearly 340–370 stocks are trading on the upper side of the momentum indicators like Moving Average Convergence Divergence (MACD) - an indicator that shows relationship between two moving averages of a stock price. The strength on the Relative Strength Index (RSI) -- a metric to judge whether a stock is in overbought or oversold zone -- has been phenomenal with stocks climbing higher highs. READ MORE
Bajaj Finance m-cap crosses Rs 3 trillion as stock hits new high
Bajaj Finance entered the elite club of companies with a market capitalisation (market-cap) of Rs 3 trillion after the company's stock price hit a new high of Rs 4,992.55, up 2 per cent in Tuesday's otherwise weak market. The stock of the non-banking finance company (NBFC) surpassed its previous high of Rs 4,957.50, touched on November 27, 2020. READ MORE
Mrs Bectors Food IPO review: Play on large opportunity in biscuits, QSR
A small player in the Rs 45,000 crore domestic packaged food industry, Mrs Bectors Food is seen gaining from the large opportunity in the biscuits and high-margin bread and institutional buns businesses.
Analysts believe the company is well positioned to scale up its operations and expand its footprint in other parts of the country as the industry is seen growing at a compounded annual growth rate of 9 per cent over the next 5 years. READ MORE
Stocks that hit 52-week high in an otherwise subdued market today
APL Apollo Tubes trades ex-date for 1:5 stock split, hits new high
Shares of APL Apollo Tubes rallied 5 per cent on Tuesday to hit a fresh record high of Rs 798 on the BSE in an otherwise weak market as the stock today turned ex-date for 1:5 stock split. The company has fixed Wednesday, i.e. December 16, 2020 as the record date to ascertain the names of shareholders entitled for sub-division of each of the equity share of the company having a face value of Rs 10 each sub-divided into 5 equity shares having a face value of Rs 2 each. READ MORE
Twitter Talk :: Shyam Sekhar on Majesco's dividend plan
After dividend, #majesco will be worth very little. We must also remember that taxes are payable on the dividend at slab rate.
Been getting calls asking if it is a good dividend play. NO. It is NOT.
258 scrips scale upper circuit limits, 143 hit lower circuits
Majesco hits record high as Co's board approves interim dividend of Rs 974
Shares of Majesco hit a fresh record high of Rs 1,019, up 5 per cent on the BSE in early morning trade on Tuesday after the company said its board has approved payment of interim dividend at the rate of 19480 per cent i.e. Rs 974 per equity share of face value of Rs 5 each for the financial year 2020-21. The company has fixed Friday, December 25, 2020, as the record date for ascertaining the eligibility of shareholders for payment of interim dividend. This interim dividend payout translates to an amount of Rs 2,788.4 crore on a shareholder base of 28.577 million shares. READ MORE
It's a green 2020 for IPOs: All 14 listings are trading above issue price
Calendar year 2020 (CY20) will go down as one of THE BEST for investors in Initial Public Offers (IPOs). Burger King India on Monday became the 14th company to get listed this year following a public issue. And, just four of the 14 stocks saw their price slip below the IPO price on listing day. However, thanks to the buoyancy in the secondary market shares of all the 14 companies are currently trading above their issue price. READ MORE
Top Sensex drags at this hour: Reliance, ICICI Bank, HUL
MARKET UPDATE:: Sensex extends losses, gives up 46k
BROKERAGE VIEW :: Geojit on HCL Tech
HCL Technologies reported a decent set of results in Q2FY21 with revenue growth of 4.5% on a sequential basis in Constant Currency (CC). Deal wins have been strong with 15 large net new wins and net-new Total Contract Value (TCV) expanding 35% QoQ. Company has developed capabilities in digital consulting, modern applications and data & analytics businesses through organic investments. Cloud migration and cybersecurity products will drive long-term growth as the clients digitalize their existing business models. Also, we believe that the strategic acquisition of DWS will improve client base and portfolio mix of services/product. We have a buy rating on the stock with a target price of Rs. 1,002 based on 20x FY22E adj. EPS.
A day after bumper debut, Burger King India shares surge another 19%
On December 14, the stock of the quick-service restaurant (QSR) closed at Rs 135, clocking 125 per cent premium over its issue price of Rs 60 on the BSE. With today's gain, the stock has rallied 167 per cent compared to its issue price. READ MORE
Nifty PSU Bank worst sectoral loser on NSE, down nearly 3%
Rupee opens lower at 73.64 per US dollar vs Monday's close of 73.58/$
Voda Idea, Bharti Airtel fall up to 2% on Jio's complaint
Reliance Industries' telecom division has asked TRAI to take action against rivals Bharti Airtel and Vodafone Idea for allegedly running a false propaganda campaign to attract its subscribers. In a letter dated Dec. 10, Reliance Jio alleged that the two companies had created an impression that Reliance - which also runs retail operations - stands to gain from three new agricultural laws introduced by the Indian government in September. Following this development, shares of Bharti Airtel and Vodafone Idea were trading in the red in morning deals on Tuesday.
KNR Constructions rallies 7% as board set to consider bonus issue
Shares of KNR Constructions rose 7 per cent to Rs 318 on the BSE on Tuesday after the company said its board will meet on Friday, December 18, 2020, to consider a maiden bonus share. The stock of the construction & engineering company hit a 52-week high of Rs 319.85, on December 4. READ MORE
Nifty Auto index turns positive
Broader market check
Texmaco Rail and Engineering jumps 14% in a weak market
BUZZING STOCK :: BGR Energy Systems soars around 7%
Tata Steel trades in the red
>> Tata Steel has increased its aggregate indirect shareholding in Tata Steel Minerals Canada to 82 per cent after acquiring 4.32 per cent additional equity in TSMC.
NMDC declines 1.6%
>> The company said its Rs 1,378-crore share buyback offer will open on Thursday and close on December 31.
TCS down over half a per cent in early deals
>> Tata Consultancy Services (TCS) has expanded its strategic partnership with Star Alliance, the world’s largest airline alliance, to provide predictive and real-time business analytics, improve its customers’ overall experience and accelerate its digital transformation journey.
Burger King India leaps 14% on heavy volume
Sectoral trends :: Investors get defensive; Nifty Pharma up 0.2%
Sensex Heatmap :: NTPC, HDFC Bank trade as top gainers in a weak mkt
Opening Bell :: Nifty holds 13,500 at open
Opening Bell :: Sensex sinks nearly 200 pts
Currency Outlook :: Reliance Securities
>> The Indian Rupee could start Tuesday on a flat note against the US Dollar. The Rupee could likely open around 73.58-60 per dollar compared with 73.58 at close on Monday.
>> However, weak US Dollar could continue to lend support to the currency.
>> Asian currencies were weak this Tuesday morning and could cap gains for the domestic unit.
>> Meanwhile, NDF is at 73.64/64 this Tuesday morning vs a close of 73.6411 on Monday.
>> Technically, USDINR Spot is holding a strong support near 73.40 levels below which could see a downside pressure up to 73.28-73.15 levels. However rebound above 73.66 levels could see an upside push up to 73.75-73.90 levels. USDINR Spot is expected to trade in a range of 73.28-73.70 levels.
Gold, silver futures gain marginally
Sensex Heatmap | Top gainers & losers in pre-open trade
Stocks to watch today
TCS: Tata Consultancy Services (TCS) has expanded its strategic partnership with Star Alliance, the world’s largest airline alliance, to provide predictive and real-time business analytics, improve its customers’ overall experience and accelerate its digital transformation journey.
NMDC is expected to trade actively after the company said its Rs 1,378-crore share buyback offer will open on Thursday and close on December 31.
JSW Steel: The board of directors of Periama Holdings, a wholly-owned indirect subsidiary of JSW Steel, have approved the issuance of $250 million aggregate principal amount of its 5.95 per cent notes due 2026 (the “Additional Notes”) which are guaranteed by the company. READ MORE
BS Podcast | All you need to know before the opening bell
- US-based Oaktree Capital has emerged as the highest bidder for bankrupt housing finance firm DHFL by making an offer of Rs 36,646 crore for the entire company. The offer includes Rs 11,646 crore in upfront cash and deferred payments to the lenders. The offer also holds back Rs 1,500 crore, which will be given to banks only after DHFL’s insurance venture is sold and all tax liabilities from the sale are met.
- The Piramal group, however, has offered an upfront payment of Rs 13,000 crore and the balance of its Rs 35,550-crore offer in deferred payments for the company. The group has also made a second offer — only for the retail portfolio at Rs 26,500 crore.
- The Adani group did not make an aggressive bid in the fourth round
BPCL bid evaluation meet today; Vedanta, Apollo Global in race
A high-powered committee will, on Tuesday, evaluate preliminary bids received from mining-to-oil conglomerate Vedanta and private equity firms Apollo Global and I Squared Capital's arm Think Gas for buying the government's 52.98 per cent stake in Bharat Petroleum Corporation Limited (BPCL), sources said. READ MORE
Stock picks by Nilesh Jain of Anand Rathi
BUY IGL | TARGET: Rs 535 | STOP LOSS: Rs 480
The stock has provided a golden crossover on the daily chart where a 50-DMA surpassed its 200-DMA hinting at a fresh momentum in the counter. On the weekly scale, meanwhile, it is hovering near its 200-weekly moving average placed at 501 levels and breakout from the same will be confirmed on the higher side. The momentum indicators and oscillators are in the buy mode on the weekly scales which also supports the positive momentum. READ MORE
FII/FPI & DII trading activity on NSE, BSE and MSEI
Oil slips on demand worries as Covid-19 lockdowns tighten in Europe
>> Oil prices dipped in early trade on Tuesday, with demand worries due to tighter lockdowns in Europe outweighing relief from vaccination rollouts and concerns about a flare-up of tension in the Middle East.
>> US West Texas Intermediate (WTI) crude futures fell 16 cents, or 0.3%, to $46.83 a barrel, while Brent crude futures fell 20 cents, or 0.4%, to $50.09 a barrel, erasing half of Monday’s gains.
SGX Nifty Update
>> At 8:03 am, the index was at 13,535 levels, down 57 points
Asian stocks dip as investors curb vaccine enthusiasm