Investors dumped domestic equities on Monday as profit booking gripped the markets. Additionally, panic selling, owing to the global rout seen in the Asian and European stocks, fretted investors. In the intra-day trade, the S&P BSE Sensex breached below the 45,000-mark and sunk 2,037 points to hit a low of 44,923 level. Nifty, on the other hand, tanked over 600 points to hit a low of 13,131-mark.
From the day's high, the Sensex index dropped 2,133 points and logged it's sharpest intra-day fall since April 2020. The Nifty index, on the other hand, lost 646 points from day's high.
At close, the Sensex settled at 45,554 levels, down 1,407 points or 3 per cent. Meanwhile, the Nifty50 index ended at 13,328 levels, down 432 points or 3.14 per cent. India VIX, the volatility gauge, jumped over 23% in the intra-day deals to hit a high of 23.4 levels. This was the index's biggest jump since July 18.
There were only sellers at the bourses with all the 30 constituents of the Sensex index ending the day in the red. ONGC plunged 9 per cent, while IndusInd Bank and M&M (down 7 per cent each), and SBI (down 6 per cent) ended the day as the top laggards on the Sensex.
Individually, aviation stocks, InterGlobe Aviaition and SpiceJet, sunk up to 10 per cent on the BSE after India suspended flights from the UK till December 31 as the country entered a tougher lockdown to fight a new strain of coronavirus
Sectorally, Nifty PSU Bank index cracked 7 per cent, Nifty Realty index skid 6 per cent, and Nifty Metal index dropped 5 per cent on the NSE.Global markets
European shares fell 2 per cent on Monday, the dollar strengthened and market volatility surged amid growing unease over the economic impact of a new coronavirus strain in Britain which has seen several European countries shut their borders to the UK.
German shares fell around 2 per cent, while pan-European travel and leisure stocks lost more than 5 per cent.
Meanwhile, Asian shares outside Japan dipped 0.2 per cent. Japan's Nikkei shed 0.4 per cent, off its highest since April 1991.
MARKET VIEW | S Ranganathan, head of Research at LKP Securities
The new variant of the Novel Coronavirus in the UK spooked markets as we witnessed intense selling in pivotal throughout afternoon trade. While the street was bracing for a correction this week after a sharp up move, the sheer velocity of the fall across broader markets took the bulls by surprise as practically none of the key indices constituents were in the Green today.
Volatility index, India VIX, spikes nearly 25%
For every one stock that gained, four declined
224 stocks scaled 52-week highs; 49 hit 52-week lows
259 scrips hit upper circuit limits; 505 touch lower circuits
BSE Midcap, Smallcap indices tank over 4% each, underperform benchmark Sensex
All sectors on NSE end in the red; PSU Bank and Media indices tank over 6% each
NEWS FLASH :: Rupee posts biggest single session fall against Dollar since Nov 12
RIL, private lenders among top Sensex drags today
Sensex Heatmap | All index stocks end in the red; ONGC worst performer
>> At close, the Sensex settled at 45,554 levels, down 1,407 points or 3 per cent. Meanwhile, the Nfty50 index ended at 13,281 levels, down 479 points or 3.5 per cent.
MARKET UPDATE:: RIL, HDFC twins, and ICICI Bank among top contributors to Sensex's fall today
SpiceJet hits 10% lower circuit
BREAKING :: INDIA SUSPENDS FLIGHTS FROM UK TILL DEC 31
Considering the prevailing situation in UK. Govt. of India has decided that all flights originating from UK to India to be suspended till 31st December 2020 (23.59 hours).
Mid, Smallcap indices slip over 5%; SpiceJet hits 10% lower circuit
Shares of mid-and-smallcap companies were under severe pressure on Monday, with the S&P BSE Midcap and S&P BSE Smallcap indices slipping over 5 per cent as investors booked profits after European markets opened with sharp cuts. At 02:33 pm, the S&P BSE Midcap index and the S&P BSE Smallcap index were down 5.4 per cent each, as compared to 3.3 per cent decline in the S&P BSE Sensex on the back of Covid resurgence in some European countries and concerns over possible lockdown restrictions as a result of the same. READ MORE
BREAKING :: INDIA MAKES COVID-19 TESTING MANDATORY FOR PASSENGERS FROM UK
As a measure of abundant precaution, passengers arriving from UK in all transit flights (flights that have taken off or flights which are reaching India before 22nd Dec at 23.59 hrs) should be subject to mandatory RT-PCR test on arrival at the airports concerned.
>> The volatility index jumped to intra-day high of 22.28
SENSEX A POOL OF RED
NIFTY HOVERS AROUND 13,300
SENSEX SINKS OVER 1600 PTS
MARKET CHECK :: Indices at day's low
>> Sensex tanks 675.57 points, or 1.44%, to hit day's low of 46,285.12 levels
>> Nifty50 index sinks to 13,565.25 levels, down 195.30 points or 1.42%
CAMS surges 16% in two trading sessions, hits highest level since listing
At 01:43 pm, CAMS was trading 7 per cent higher, as compared to a 0.82-per cent decline in the S&P BSE Sensex. Trading volumes on the counter jumped an over four-fold and a combined 1.3 million equity shares had changed hands on the NSE and BSE till the time of writing of this report. READ MORE
MARKET UPDATE:: Broader indices underperform benchmarks; India VIX surges 8%
SENSEX TANKS 600 PTS
Expert Take | Sometimes selling winners makes sense
Classical investment theory says that we should hold on to our winners and sell our losers, if needed. I was reminded of this when I met Sunil, a 40-plus executive with a multinational corporation.
Sunil had a few good equity mutual fund investments and fixed deposits, but a significant part of his investment was tied up in a house (not his residence) which he had bought around 10-11 years back, fuelled by a low-cost loan from his employer and the great deals on offer in the aftermath of the 2008 crisis. READ MORE
Private lenders top Sensex drags at this hour
ALERT :: European stocks plunge at open
>> Shares on the major European stock market indexes opened the session on Monday well below the flatline as the investors followed closely the news regarding the new strain of the coronavirus found in the United Kingdom.
>> The DAX tumbled 1.70% at open as MTU Aero Engines lost 5.56% in early deals. The CAC 40 dwindled 2.45% at the opening bell. Meanwhile, in London, the FTSE 100 dropped 1.68% as the trading started. The euro fell 0.56% versus the dollar, selling for 1.21772 at 8:58 am CET, while the pound sterling declined by 1.59%, to go for $1.32818 at the same time.
Nifty P/E up 20%; discretionary, energy stocks see maximum expansion
The benchmark Nifty is currently up 13 per cent on a year-to-date basis. However, the 12-month forward price-to-earnings (P/E) multiples for the index has shot up nearly 20 per cent during the same period.
In other words, the rise in the stocks has been much higher than the 2021 earnings growth estimates for the underlying stocks. Within the market, the discretionary, energy, and information technology (IT) sectors have seen the maximum expansion in their P/E multiples, shows an analysis done by Credit Suisse. READ MORE
IT stocks trade higher in an otherwise subdued market
Godrej Ind dips 3% after block deal, trades lower for third straight day
Shares of Godrej Industries dipped 3 per cent to Rs 434 on the BSE on Monday after one million of the company's equity shares changed hands via block deal. The stock was trading lower for the third straight day, down 8 per cent during the period. It hit a 52-week high of Rs 483 on Wednesday, December 16, 2020. Godrej Industries is the flagship company of the Godrej Group and holds leadership position in its core business of oleochemicals in the domestic market. READ MORE
Tesla debuts into S&P after frantic Friday trading
Tesla Inc will on Monday make its much anticipated debut into the benchmark S&P 500 index, after rising to a record high on Friday in a frantic day of trading. The company, headed by billionaire Elon Musk, will become the most valuable ever admitted to Wall Street's main benchmark and will account for 1.69% of the index, according to S&P Dow Jones Indices' analyst Howard Silverblatt. (Text Source: Reuters)
Mrs Bectors Food IPO allotment status: Here's how to check
The allotment status of Mrs Bectors Food's Rs 540 crore initial public offer (IPO) is likely to be announced on Tuesday. The issue, which ran between December 15 to December 17, was the most successful IPO of 2020 so far, having received 198 times subscription as investors eye solid listing gains following the success of previous IPOs. READ MORE
GMR Infra gets nod from stock exchanges on proposed rejig plan
GMR Infrastructure on Monday said it has received consent from stock exchanges, with no adverse observations, on its proposed restructuring involving demerger of its non-airport vertical business. The company said it will file the scheme with the National Company Law Tribunal (NCLT) within six months. (Text Source: PTI)
News Flash | Snowman Logistics approves to raise funds up to Rs 250 cr via QIP
Following this development, the stock was down 0.36 per cent at Rs 55.95.
IPO Update : Anthony Waste Handling Cell IPO subscribed 75% within 2 hours
PODCAST :: What should be your investment strategy with markets at all-time high?
Massive liquidity following central banks' actions, impressive retail participation, green shoots in the economy, foreign capital inflow and the developments on vaccine front -- all have come to the aid of the market bulls, driving indices to record high levels. In this scenario, what should be your investment strategy?
RIL, L&T, HDFC Bank: Strategies for blue-chip stocks in a range-bound mkt
Larsen & Toubro Ltd (LT): After conquering the 200-weekly moving average (WMA) at Rs 1,173 levels, on a closing basis, the stock is nearing the resistance level of Rs 1,350 levels. A firm close above this mark may trigger a fresh rally towards Rs 1,500 levels. The overall trend remains bullish in the stock as it is exhibiting a stable upside with each corrective move meeting with long positions. The Moving Average Convergence Divergence (MACD), too, has crossed the zero line suggesting bullish sentiment to contunue. The support level comes in at Rs 1,250 level. READ MORE
BSE IT best sectoral performer; here are top winners & losers from the sector
NEWS FLASH | RIL, IOC, BPCL likely in race for Navi Mumbai ATF pipeline: Cogencis
Navi Mumbai ATF pipeline may cost up to Rs 100 crore
BUZZING STOCK:: Burger King gains 6%
AstraZeneca Pharma gets DCGI nod to market asthma drug
Drug firm AstraZeneca Pharma on Monday said it has received marketing authorisation from Drug Controller General of India for Benralizumab solution, indicated as an add-on maintenance treatment for severe asthma. AstraZeneca Pharma India has received import and market permission in Form CT-20 (marketing authorisation) from the Drugs Controller General of India for Benralizumab 30mg/ml solution for injection (Fasenra), the drug firm said in a regulatory filing. Benralizumab (Fasenra) is indicated as an add-on maintenance treatment for severe asthma with an eosinophilic phenotype in adult patients. (Text Source: PTI)
Borosil Renewables surges 13% on successfully raising Rs 200 crore via QIP
Shares of Borosil Renewables surged 13 per cent to Rs 189, also its fresh record high on the BSE on Monday, after the company announced the successful completion of fund raising of Rs 200 crore through a qualified institutions placement (QIP). The company allotted 15.8 million equity shares of face value of Re 1 each at Rs 126.55 per share. Post the QIP issue, the holding of promoter and promoter group will be 61.92 per cent, Borosil Renewables said in a press release. READ MORE
Stock Idea by Geojit Financial: Jyothy Labs
The company is witnessing gradual improvement in demand across brands with more relaxations in restrictions. For Q2FY21, revenue grew by 6% YoY amidst challenges, mainly supported by volume growth in General Trade (GT) and E-Com channels. EBITDA margin improved by 70 bps YoY to 17.3% aided by 130 bps improvement in gross margin. We factor revenue/earnings to grow at ~10%/21% CAGR over FY20-22E and value JLL at 25x FY22 P/E. Likely pick up in rural demand, aided by good monsoon and GoI’s rural initiatives along with JLL’s focus on essential hygiene products will support volume growth. We maintain Accumulate rating with a revised target price of Rs 163.
NEWS FLASH :: L&T management asked NSDL to correct FPI holding back to 49%
NEWS ALERT :: Future Retail Resolution approving the transaction with Reliance is valid, observes Delhi HC
>> All findings prima facie in nature, says HC
NEWS ALERT :: Delhi High Court refuses to restrain Amazon from writing to statutory authorities
>> Court says statutory authorities free to form their own as per law.
>> Delhi HC observes Suit is maintainable, Emergency Award holds good.
Valiant Organics surges 4% ahead of turning ex-date for 1:1 bonus issue
The Company has fixed December 28, 2020 as the 'Record Date' to determine the eligible shareholders entitled to receive the bonus shares. The board of directors of the company on November 13, 2020 had recommended the issue of bonus shares in the ratio of 1:1 i.e. 1 bonus equity share for 1 equity share held in the company as on record date. READ MORE
BS Podcast :: What should be your investment strategy with the markets at all-time high?
Massive liquidity following central banks' actions, impressive retail participation, green shoots in the economy, foreign capital inflow and the developments on vaccine front -- all have come to the aid of the market bulls. LISTEN HERE
Nifty Pharma index hits new record high
Shares of pharmaceutical companies were in focus on Monday with Nifty Pharma index hitting a fresh record high of 12,836 on the National Stock Exchange (NSE) in an otherwise subdued market.
Cipla, Cadila Healthcare, Lupin, Sun Pharmaceutical Industries and Aurobindo Pharma from the Nifty Pharma index were up in the range of 1 per cent to 2 per cent on the NSE. READ MORE
ALERT :: Sensex hits record high of 47,030.97 in intra-day deals
>> Infosys, RIL, L&T top contributors at this hour
MARKET OUTLOOK 2021 :: Ambareesh Baliga
The earnings in the last two quarters have surprised most analysts with better-than-expected numbers. The fund raised by Reliance Industries Limited (RIL) during the Covid-19 pandemic from marquee global investors was another unexpected surprise. The macro numbers have been improving month-on-month with goods and services tax (GST) collection, consumption data, PMI as well as some of the core sectors such as cement, power, coal, fertilizers witnessing growth. READ MORE
Anthony Waste IPO kicks off: Should you subscribe?
Betting on a gush of liquidity and heightened risk appetite, Antony Waste Handling is making a second attempt to go public. The three-day initial public offer (IPO) of the company will open today at a price band of Rs 313-315 per share.
As the sector remains in a nascent stage, analysts see the firm offering decent returns only in the long-term. Analysts remain cautious on the issue as concerns over economic slowdown and Covid-19 pandemic continue to persist’ government’s lower allocation towards waste management projects; high revenue concentration risk; and project renewal risk. READ MORE
MARKET VIEW | V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
A new and faster-transmitting strain of the virus in the UK is an area of concern. This has led to further restrictions on travel and economic activity. Acceleration in the number of cases in the US and poor economic data are other dampeners. However, the US Congress agreement on $ 900 billion of fiscal stimulus is likely to support markets. High valuation continues to be a concern in India. But the power of FII-driven liquidity is overwhelming all negative news. Investors should exercise caution.
Rupee opens weaker at 73.75 per US dollar vs Friday's close of 73.56/$
Shipping Corp up 7% on report govt may invite EoIs for divestment this week
Shares of Shipping Corporation of India (SCI) rose 7 per cent and hit a 52-week high of Rs 92.70 on the BSE on Monday on report that the government may invite expressions of interest (EoI) for the company this week. The stock of the state-owned shipping company surpassed its previous high of Rs 89.95, touched on December 11, 2020. According to a PTI report, the government is likely to invite bids this week for the privatisation of the SCI, with buyers getting time till mid-February to submit their EoIs. READ MORE
Two stock ideas by Vaishali Parekh of Prabhudas Lilladher
We suggest to buy and accumulate this stock for an upside target of Rs 270-280, keeping the stop loss of Rs 240.
We suggest to buy and accumulate the stock for upside target of Rs 1,450-1,480, keeping the stop loss of Rs 1,280.
Nifty trading in highly overbought zone: Sameet Chavan
Nifty is trading near all-time high and although there's no limit on the upside, reciprocal retracements usually indicates where the markets could resist in such a trend. If we observe positional charts and take retracements of the previous corrections, then 127 per cent retracement of the previous correction from 12,430 to 7,511 comes around 13,770 and that is where Nifty is placed right now. On the other hand, the RSI-smoothened oscillator is trading at level above 95 on the daily chart which is a highly overbought zone. READ MORE
M&M shares dip 2% as firm announces price hike for tractors
The company in a BSE filing said that it will increase the price of its range of tractors, across models. This has been necessitated due to the increase in commodity prices.
Aviation stocks under pressure; dip up to 5%
Spicejet shares dipped 5 per cent while those of Interglobe Aviation (IndiGo) fell 3 per cent over the UK border closure.
Buzzing Stock | Shipping Corp shares jump 5%
The government is likely to invite bids this week for the privatisation of Shipping Corporation of India, with buyers getting time till mid=February to submit their expressions of interest (EoIs), said an official. The government is planning to sell its entire 63.75 per cent stake in Shipping Corporation, along with transfer of management control.
Mindspace REIT shares gain marginally after Vanguard Group Inc bought stake in firm
The Vanguard Group Inc bought 51.19 lakh shares of Mindspace Business Parks REIT at Rs 321.88 per unit, bulk deal data showed.
Infosys slips 0.50% after the firm divested one-third of its holding in Whoop Inc for $10 mn
Reliance Industries shares defy market mood, rise over 1%
Reliance and its partner BP on Friday announced the first gas from the R Cluster, ultra-deep-water gas field in block KG D6 off the east coast of India. The two companies are developing three deepwater gas projects in block KG D6 – R Cluster, Satellites Cluster and MJ – which together are expected to meet 15 per cent of India’s gas demand by 2023.
India VIX spikes over 3% to 19.26
Barring Nifty Pharma and Nifty IT, all sectors on NSE in the red
Top Sensex gainers & losers at opening tick
Senese sheds 105 points to trade at 46,800 level; Nifty dips 40 points to 13,715
NEWS FLASH | M&M to increase price of range of tractors from Jan 1
Gold, silver futures gain amid Covid fears
Sensex gainers and losers in pre-open
Markets in pre-open
-- Sensex dips 10 points at 46,940 levels, Nifty50 up 4 points at 13,765
Stocks to watch today
Reliance Industries: Reliance and its partner BP on Friday announced the first gas from the R Cluster, ultra-deep-water gas field in block KG D6 off the east coast of India. The two companies are developing three deepwater gas projects in block KG D6 – R Cluster, Satellites Cluster and MJ – which together are expected to meet 15 per cent of India’s gas demand by 2023.
PVR: The company will raise up to Rs 800 crore via equity. READ MORE
FII/FPI & DII trading activity on NSE, BSE and MSEI
-- Oil prices ran into some profit-taking after notching up seven straight weeks of gains
Asian stocks decline
--- Asian stocks slipped in Monday's early trade as investors gave a cautious welcome to the US stimulus bill news, and Brexit talks dragged on with no agreement in sight.
NEWS ALERT :: US lawmakers back $1.9 billion to replace telecom equipment from China's Huawei, ZTE
>> U.S. lawmakers will back $1.9 billion to fund a program to remove telecom network equipment that the US government says poses national security risks as part of a $900 billion Covid-19 relief bill, Reuters reported quoting sources.
>> Lawmakers will also back $3.2 billion for an emergency broadband benefit for low-income Americans, senior congressional aides confirmed after Reuters first reported the planned broadband spending.
NEWS ALERT :: US Congress reaches deal on Covid-19 aid package
>> US congressional leaders reached agreement on Sunday on a $900 billion package to provide the first new aid in months to an economy and individuals battered by the surging coronavirus pandemic, with votes likely on Monday.
>> The package would be the second-largest economic stimulus in U.S. history, following a $2.3 trillion aid bill passed in March.
SGX Nifty Update
>> At 8:20 am, the index was at 13,727 levels, down 55 points
Track all the latest markets developments here.
>> Indices may see muted start today on fresh coronavirus concerns in the UK
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