Sensex ends 308 pts up at 48,177, Nifty at 14,133; Nifty metal surges 5%

The Indian government's decision to approve two vaccines -- Serum Institute of India's Covidshield, and Bharat Biotech's Covaxin -- for restricted use in an emergency situation pushed indices to record high levels yet again on Monday. Moreover, manufactruing PMI, that remained in the expansion zone for fifth straight month and stood at 56.4 in December, also let loose bulls on D-Street.

Extending the bull-run into tenth week, the benchmarks ended tad-bit lower than record highs but at fresh closing peaks nonetheless. The S&P BSE Sensex settled the day 308 points, or 0.6 per cent, higher at 48,177 levels on the BSE, after hittig fresh liftime peak of 48,220.4 in the intra-day deals. Its NSE counterpart, Nifty50, ended above the 14,100-mark for the first time, at 14,133 levels, up 114 points or 0.8 per cent. In the intra-day trade, the index hit a record peak of 14,148.

Tech stocks such as TCS, HCL Tech, and Infosys (up between 2 per cent and 4 per cent) settled the day as top gainers on the Sensex while steel stocks including Tata Steel and Hindalco (up over 8 per cent and 7 per cent, respectively) were the top performers on the Nifty. At the lower end of the spectrum, Bajaj Finance, Asian Paints, HDFC Bank, and Hero MotoCorp were the top losers.

On the sectoral front, Nifty Metal index jumped 5 per cent on the NSE today after global brokerage Jefferies said benign monetary policies, and potential stimulus measures provide strong backup to the metal sector. It also said that Indian metals should deliver a strong earnings rebound in FY22. Among individual stocks, Tata Steel, SAIL, Hindalco, and JSPL ended the day up to 7 per cent higher.

On the downside, Nifty Bank, Nifty Private Bank, and Nifty Financial Services indices ended the day in the red.

In the broader market, the S&P BSE Midcap index hit a record high of 18,435.14 in intra-day session today, surpassing previous high of 18,321, touched on January 9, 2018. It ended 1.4 per cent higher at 18,421.5 level. The S&P BSE SmallCap index, on the other hand, ended 1.37 per cent higher at 18,511 level.

World stock markets hit record highs on Monday, the first trading day of the new year, as investors hoped the rollout of vaccines would ultimately lift a global economy decimated by the Covid-19 pandemic.

European stocks opened higher, with Britain's FTSE 100 gaining 1.75 per cent, Germany's DAX up 1.1 per cent, Spain's IBEX up 1.3 per cent and Italy's FTSE MIB rising 0.7 per cent. MSCI's All-Country World Index, which tracks stocks across 49 countries, hit a record high and was up nearly half a per cent.

Asian stock markets also gained, although Japan's Nikkei 225 index shed early gains, falling 0.4 per cent after the government said it was considering a state of emergency for Tokyo and three surrounding prefectures amid coronavirus concerns.


LIVE UPDATES

MARKET CLOSING COMMENT :: Naveen Kulkarni, Chief Investment Officer, Axis Securities

Today, the Indian market tested a fresh high of 48,000 at Sensex, amidst a positive development on the vaccination front. Overall, the investor sentiments have been lifted after the emergency approval given by DCGI on two Coronavirus vaccines: Covishield & Covaxin. A strong December closing has laid the platform for a solid 2021. We continue to believe that 2021 will be the year of mid and small caps. 2021 is likely to outperform, similar to 2020 . Our core themes -  digital, telecom, pharma, rural, staples and consumer discretionary, continue to remain relevant in 2021. Pharma & IT were the top performing sectors of 2020, while Banks were negative. Automobiles and metals delivered positive returns in 2020 after a challenging 2019. We believe that 'Growth and Quality' are likely to be the themes for 2021. The focus will be on the BFSI sector and management commentary on the stress challenges. Apart from the Q3 earnings, the Union Budget will be an important event. The finance minister has promised a solid budget, and this will be critical for manufacturing, pharma and infrastructure sectors.  IT and Consumer will report good numbers

MARKET CLOSING COMMENT :: Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares

Indian markets opened on a positive note following upbeat Asian market peers as South Korean and China’s stocks surge in first trading day of 2021 after private survey showed Chinese manufacturing activity expanding in December. During the afternoon session markets slipped as some selling was witnessed in key frontline banking stocks. However, markets regained and further sthengthened as the Nikkei India Manufacturing Purchasing Managers’ Index (PMI), released during the day  surged to 56.4 in December as against 56.3 in November. Also, the global cues from western markets helped in boosting the sentiments near closing session. On sectoral front, Metals, IT, Auto and Pharma led the markets while Bank stocks remained muted for the day

MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services

Every dip is being considered by the traders as an opportunity to buy. Today morning’s volatility was brought, fueled by the early rollout of the vaccine in India and positive opening of the European market. The leader was IT stocks boosted by the hope of a strong quarterly result, which will start soon. The global market has kicked off the year on a positive note as investors across the globe are optimistic about economic recovery on the report over vaccine approval &  fiscal support
 

Market stats :: BSE m-cap hits Rs 191.7-crore mark


Broader markets :: S&P BSE MidCap up 1.4%


Nifty IT index ends at record high


All 15 constituents end in the green; Tata Steel jumps over 8%


Sectoral trends on NSE :: Nifty metal outperforms benchmarks


Sensex Heatmap :: Financials cap gains


CLOSING BELL

The S&P BSE Sensex settled the day 308 points, or 0.6 per cent, higher at 48,177 levels on the BSE, after hittig fresh liftime peak of 48,220.4 in the intra-day deals. Its NSE counterpart, Nifty50, ended above the 14,100-mark for the first time, at 14,133 levels, up 114 points or 0.8 per cent. In the intra-day trade, the index hit a record peak of 14,148.

Puravankara surges 8%


Tata Motors partners with Karnataka Bank for retail finance support

Tata Motors has signed a memorandum of understanding with Karnataka Bank to introduce financing offers for customers.
 
Customers can avail a variety of schemes on their future vehicle purchase available across 857 branches of Karnataka Bank which include 199 semi-urban and 67 rural branches. READ MORE

Corporate Action :: HDFC Board to meet on Feb 2 to consider fund raise via NCDs

>> the Board of Directors of the Corporation would consider the issuance of secured/unsecured redeemable non-convertible debentures, in various tranches
under a Shelf Disclosure Document, aggregating around Rs 45,000 crore on a private placement basis.

>> It will also consider and approve Q3FY21 results.

MARKET CHECK :: Sensex leaps 300 pts, hits record high of 48,194


Alkyl Amines Chemicals advances 7% on stock split, expansion plan

Shares of Alkyl Amines Chemicals moved higher by 7 per cent to Rs 4,141 on the BSE in intra-day trade on Monday after the company announced stock split and expansion plans. The stock of the specialty chemical firm was trading close to its record high of Rs 4,162 touched on December 2, 2020. "The board of directors of the company are scheduled to meet on February 2 to consider the proposal of sub-division of equity shares of the company from the face value of Rs 5 to a lower denomination. The board will also consider the proposal for setting up of new project(s) including Amines," it said in a BSE filing. READ MORE

NEWS ALERT :: India's Oct-Dec sugar output surged 42%YoY to 110.22 lakh tonne


Budget 2021 will address woes of affected sectors, says Finance Secretary

Finance Secretary AJAY BHUSHAN PANDEY attributes the record December goods and services tax (GST) collections at Rs 1.15 trillion to economic recovery and the government’s measures to address tax evasion. READ MORE

Limited near term gains for Syngene International stock in pharma space

The Syngene International stock has been one of the big outperformers within the pharma space over the past year nearly doubling in value. The gains came on the back of expectations that a rise in research and development programmes of innovators and the expansion of its contract manufacturing business will boost its medium term prospects. READ MORE

Corporate Action :: Alkyl Amines to consider stock split in February 2 board meeting

>> To also consider setting up new project including amines 


Q3 Biz Update :: India business delivered a strong performance with double-digit volume growth, says Marico

>> The quarter was characterized by a faster than expected recovery in consumer sentiment in Indi

>> India business delivered a strong performance with double-digit volume growth. Revenue growth was in tandem with volume growth.

>> The International business had a resilient quarter with high-single digit constant currency growth, led by double-digit constant currency growth in Bangladesh and recovery in few other markets.

European indices trade higher in early deals

(Source: Reuters)


NEWS ALERT | L&T Hydrocarbon bags an an order in the range of Rs 2,500-5,000 cr from HPCL Rajasthan Refinery


Vodafone Idea, RIL, Tata Steel among most active stocks in volume terms


NEWS ALERT | TCS hits new high of Rs 3,015, trading above share buyback price of Rs 3,000 per share

-- The buyback offer closed on Friday, January 1, 2021

MARKET STATS :: BSE advance-decline ratio at 2:1

BSE Midcap index hits record high; JSPL, Ashok Leyland surge 6%, SAIL up 5%

Shares of midcap companies were on a roll on Monday with the S&P BSE Midcap index hitting a record high on the back of a strong rally in metals, financials and public sector undertaking (PSU) stocks. At 12:50 pm, the S&P BSE Midcap index was up 0.85 per cent at 18,319 levels, as compared to a 0.31-per cent rise in the S&P BSE Sensex. The midcap index hit a record high of 18,363 in the intra-day trade, surpassing its previous high of 18,321, touched on January 9, 2018. READ MORE

S&P BSE MidCap index up 1%; Ashok Leyland, Voda Idea, Jindal Steel up 5% each


BROKERAGE VIEW :: Jefferies sees Nifty at 15,800 by Dec 2021

>> Nifty currently trades at 22.3x 12M forward earnings - more than 1sd above the past 10-year range. However, our favourite (bond yield - earnings yield) metric shows that the valuation is close to averages.

>> Favourable global backdrop should continue to drive foreign inflows and we expect overall domestic retail participation (including direct participation) will be supportive.

>> Our Nifty target implies a 20x 12M forward PE - 10% derating from the current level. We remain OWT – Financials, Property, industrials, materials. Neutral – Pharma, energy, discretionary. UWT – Staples, Utilities, IT services, telecom.

Revathi Equipment hits 20% upper circuit on voluntary delisting proposal

The company informed the stock exchanges that it has received a letter dated January 3 from the promoters and promoter group of the company with a proposal to voluntarily delist the equity shares of the company from BSE and National Stock Exchange (NSE) in accordance with the SEBI regulations. READ MORE

Oil prices touch multi-month highs as OPEC+ expected to hold output

 Oil prices touched multi-month highs on Monday on expectations that OPEC and allied producers may cap output at current levels in February as the coronavirus pandemic keeps worries about first-half demand elevated. Prices rose in line with broader financial markets with Brent crude futures reaching $53.17 a barrel, the highest since March 2020. U.S. West Texas Intermediate crude touched $49.71 a barrel, the highest since February 2020. READ MORE

NEWS ALERT | Tamil Nadu govt allows movie theatres to operate at 100% capacity: Report

>> Shares of PVR up 2.5%; Inox Leisure gain 4%

NEWS ALERT :: I-T Dept conducts searches across 15 locations of Zee Group in Mumbai, say reports

Gold prices scale eight-week high as tighter lockdown measures loom

 Gold prices started the new year on a high by notching an eight-week peak after surpassing the key $1,900 level on Monday, as a surge in COVID-19 cases and prospects of tougher coronavirus control measures lured investors to the safe-haven metal.
 
Spot gold rose 1.1% to $1,919.07 per ounce by 0246 GMT, having hit its highest since Nov. 9 at $1,920.09, while U.S. gold futures climbed 1.5% to $1,923.50. READ MORE

Fall from intra-day high today

COMPANY DAY'S HIGH(RS) DAY'S LOW(RS) LATEST(RS) FALL(%)
DCM SHRIRAM 420.00 395.00 396.20 -5.67
TASTY BITE EAT. 12263.70 11484.75 11588.00 -5.51
DISH TV INDIA 13.70 12.83 12.97 -5.33
I D F C 38.85 37.00 37.10 -4.50
Click here for the full list

Fitch Solutions revises forecast, says Indian rupee to trade weaker in 2021

Fitch Solutions has revised its forecast for the Indian rupee to average stronger at Rs 75.50 per US dollar in 2021 from Rs 77 previously, and Rs 77 in 2022 from Rs 79 previously to account for a stronger 2021 forecast. "We expect the rupee to trade only slightly weaker over the near term from current levels," it said. "We see depreciatory pressure on the rupee due to worsening terms of trade from rising oil prices, further monetary easing and bouts of risk-off sentiment being partially offset by US dollar weakness and central bank foreign exchange intervention to combat imported inflation." READ MORE

BEML, RCF: Divestment may trigger a breakout in PSU stocks, charts show

Shares of public sector undertakings (PSUs) garnered traction on Monday after the government invited bids for strategic divestment in BEML, a defense and engineering company. Nifty PSE Index advanced as much as 1.5 per cent on the National Stock Exchange (NSE) in the intra-day day. At 11:45 am, the index was up 1 per cent, as against a 0.23 per cent gain in the benchmark Nfty50 index. On Sunday, DIPAM said the government will sell 26 per cent out of the total 54.03 per cent stake it holds in the company along with transfer of management control. READ MORE

SECTOR WATCH :: Nifty Metal best sectoral performer, jumps 3%


Avenue Supermarts extends gains to 4th straight day, hits record high

Shares of Avenue Supermarts, which runs the DMart chain of stores, were trading higher for fourth straight day, up 2 per cent at Rs 2,837 on the BSE in intra-day trade on Monday and was trading at its all-time high level. In the past one month, it has outperformed the market by gaining 16 per cent, as against a 6-per cent rise in the S&P BSE Sensex. Meeting of the board of directors of Avenue Supermarts is scheduled to be held on Saturday, January 9, 2021 to consider financial results of the company for the quarter ended December 2020 (Q3FY21). READ MORE
 

JSPL shares rise 4% as firm posts record sales, production numbers in Dec

Private steel maker Jindal Steel and Power (JSPL) on Monday posted a record 30 per cent jump in its standalone production and 25 per cent growth in sales during December 2020. The company's total production from its plants in India was at 7.27 lakh tonne (LT) in December, up from 5.59 LT during the same month in 2019, JSPL said in a statement. During the month under review, its standalone sales were at 7.11 LT, as against 5.67 LT in December 2019. (Text Source: PTI)

NEWS ALERT :: Cochin Shipyard announces interim dividend of Rs 9/sh


Nifty Realty worst sectoral performer at this hour, down over 1%


MARKET UPDATE:: Broader indices outperform benchmarks; India VIX rises 5%


This cement stock has underperformed Sensex since listing; will tides turn?

Star Cement holds 25 per cent of the total market share of the North-Eastern region which contributes 75 per cent to its revenues. According to an analysis by Axis Securities, the cement demand in the region has grown at 8 per cent compounded annual growth rate (CAGR) over the past three years and is expected to grow further as the region has the lowest per capita consumption of cement in India, and on the back of housing and infra activities undertaken by the government. READ MORE

MARKET UPDATE:: Sensex pares gains, slips into red


IT shares in demand ahead of Q3 results; TCS, Infy, HCL Tech hit new highs

Tata Consultancy Services (TCS) and Larsen & Toubro Infotech (LTI) were up 2 per cent at Rs 2,988 and at Rs 3,769, respectively, hitting new highs on Monday. Infosys, HCL Technologies, Wipro, and Tech Mahindra, too, were trading at their respective fresh record highs on the NSE. READ MORE

Q&A | Maintain a constructive view on Indian equities for 2021, says Ashish Gumashta

The improving earnings outlook, coupled with heal­thy flows, is expected to ke­ep investors interested in equities. Hence, we expect the Indian equity markets to continue to do well in 2021, albeit with inte­r­mittent bouts of corrections. Over the past couple of months, the market breadth has improved, with mid- and small-caps attracting flows. This broad-based participation should continue. READ FULL INTERVIEW HERE

Reliance Jio files plea in Punjab & Haryana High Court on 'vandalism by miscreants'

  • Jio seeks intervention to stop acts of vandalism
  • Shall insist suppliers to abide by MSP
  • Have not done any 'corporate' farming in past
  • RIL shares down 0.50% on BSE 


NEWS ALERT :: December Manufacturing PMI stands at 56.4 vs 56.3 in November

>> The health of the Indian manufacturing sector continued to Source: IHS Markit. strengthen in December, with manufacturers stepping up production and input buying amid efforts to rebuild their inventories following business closures earlier in the year. While firms were able to lift input stocks, and did so at the quickest rate in nearly a decade, holdings of finished goods decreased sharply due to ongoing increases in new work. 

>> The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was at 56.4 in December, a tick higher than November's reading of 56.3 and above the critical 50.0 threshold for the fifth straight month. 

(Source: IHS Markit)

BEML rallies 8% as govt invites initial bids for strategic divestment

Shares of BEML Limited rallied 8 per cent to Rs 1,050 on the BSE on Monday after the government invited bids for strategic divestment in in the defense and engineering company. The stock was trading close to at its 52-week high level of Rs 1,080 on January 16, 2020. The government will sell 26 per cent out of the total 54.03 per cent stake it holds in the company along with transfer of management control, according to the preliminary information memorandum released by the Centre. READ MORE

Tata Motors gains 4%, nears 52-week high on strong December sales data

Tata Motors’ commercial vehicle (CV) domestic sales in the October-December quarter (Q3FY21) stood at 82,155 units, up 48 per cent against the previous quarter, the company said in an exchange filing, post market hours on Friday. The sales were broadly in line with the figure posted in Q3FY20 (- 3.5 per cent). READ MORE

L&T bags mega order from HPCL Rajasthan Refinery

  • L&T defines orders above Rs 7,000 as 'mega'
  • The stock was trading over 1 per cent up on BSE


Rupee Opening

Rupee opens stronger at 72.94 per US dollar vs Friday's close of 73.12/$, trades at highest level since Sept 2

Antony Waste Handling slumps 9%


Sunflag Iron and Steel soars 11%, hits 52-week high


Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 11.85 5.80
SUZLON ENERGY 7.21 4.95
TRIDENT 11.89 10.81
B H E L 40.20 3.88
PUNJAB NATL.BANK 35.30 1.44
» More on Most Active Volume

Nifty Metal index, up 2 per cent, leads sectoral gainers


Inox Leisure gains over 2% on vaccine boost


Rashtriya Chemical shares rise nearly 3% as govt plans to sell 10% stake in firm

The government is planning to sell 10 per cent stake in Rashtriya Chemical and Fertilizers and has invited bids from merchant banker and legal firms for managing the share sale process.

Covid-19 Update :: India reports 16,505 new cases on Sunday

MARKET VIEW | V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Positive economic data like all-time record GST collections (Rs 1.15 lakh crores) and impressive auto numbers particularly in crucial segments like HCVs & MCVs in December augur well for the markets. The low-interest-rate has become a major tailwind for the economy. Indian economy can grow by above 10 % in FY 22. This means around 16 % increase in nominal GDP and impressive growth in corporate profits. Low-interest rate regime in the developed world and the declining dollar are positives for capital inflows into EMs like India. The risk is something triggering capital outflows which can cause a sharp correction in markets.

December Auto Sales :: Bajaj Auto reports highest ever exports


Tata Steel up 2%

>> Tata Steel, on Friday, said it has transferred its stake in two companies to TSDPL, a wholly- owned subsidiary of the firm, as part of reorganising its India footprint.


Tata Motors advances 3% post Dec Auto sales figures

>> Tata Motors, on Friday, reported a 21 per cent increase in total vehicle sales in the domestic market to 53,430 units in December.


Coal India gains post Q3 biz update

>> The company's production in December was up by 0.5 per cent to 58.3 million tonne, while its offtake was down by 2.1 per cent to 52.6 million tonne for the month.


DGCI approves phase-3 Covid-19 vaccine trial; Cadila gains 2%

>> DGCI has approved phase 3 clinical trials of Ahmedabad-based Cadila Healthcare’s ZyCov-D. The company will now be initiating Phase III clinical trial in around 30,000 volunteers.


Reliance Industries dip around 0.4% as Sebi imposes penalty

>> Sebi, on Friday imposed penalties on Reliance Industries, its Chairman and Managing Director Mukesh Ambani as well as two other entities for alleged manipulative trading in the shares of erstwhile Reliance Petroleum back in November 2007. Besides, RIL and its partner BP Plc of UK have committed to pay in cash for any natural gas volumes they are unable to deliver to customers from the next wave of discoveries in the eastern offshore KG-D6 block.


BUZZING :: MMTC hits 52-week high

>> Reports suggest govt is looking to raise funds to give VRS to employees


BEML jumps over 5% as govt invites EoI for divestment

>> The government, on Sunday, invited preliminary bids for strategic sale of 26 per cent stake along with transfer of management control in defence PSU BEML. Bidders can submit their Expression of Interest (EoI) by March 1.


Sectoral trends on NSE :: Metals, PSBs lead from the front


Sensex Heatmap :: All except RIL trade in the green


Opening Bell :: Nifty tops 14,100 in early trade


Opening Bell :: Sensex surpasses 48,100 at open


Biz Update :: YES Bank's Q3 advances up 1.3% QoQ

>> Gross retail disbursements up 101%

>> CASA up 12.6%

>> Credit-to-deposit ratio at 115.6% Vs 122.9% QoQ

Commodity Check | Gold, silver futures gain up to 2%


NSE Nifty adds 75 points, trades at 14,095 in pre-open session

Sensex rises over 100 points in pre-open session


Bitcoin trading at $32,990 after recording high of $34,800 on Sunday

Bitcoin was trading at $32,990 in Asia on Monday, after soaring to a record high of $34,800 on Sunday. The digital currency has advanced some 800% since mid-March as more traders and investors bet it is on its way to becoming a mainstream payment method. The latest milestone for the world's most popular cryptocurrency comes less then three weeks after it crossed $20,000 for the first time ever on Dec. 16. (Source: Reuters)

BROKERAGE VIEW :: MOFSL on Indian Energy Exchange

CMP: Rs 220 | TP: Rs 255 (+16%) | Reco: Buy

>> In 3QFY21, electricity volumes grew 61% YoY to ~20BU. While power demand is recovering, volumes on IEX by itself are impressive. Based on initial data from POSOCO and the Ministry of Power, India’s power demand for the quarter is estimated to have risen 6.5% YoY, with a generation of 337BUs. This implies a 5.9% market share for IEX for the quarter (v/s a 4% share in FY20).

>>  As per our analysis, DAM volumes from the country’s northern (Punjab, Rajasthan) and southern (Andhra Pradesh) regions has seen a sharp rise during the quarter. This could partly be attributable to higher growth in peak demand within the northern region. While an uptick in merchant prices (as demand improves) and the large base of 4QFY20 needs to be watched, we conservatively revise our FY21E electricity volume/EPS estimates by 10%/8% given its strong performance. Rolling forward to 30x Dec’22E EPS, we maintain our Buy rating with a TP of INR255/share.

Stocks to watch: RCFL, Tata Motors, RIL, BEML, Cadila Healthcare

Rashtriya Chemical: The government is planning to sell 10 per cent stake in Rashtriya Chemical and Fertilizers and has invited bids from merchant banker and legal firms for managing the share sale process.
 
Cadila Healthcare: DGCI has approved phase 3 clinical trials of Ahmedabad-based Cadila Healthcare’s ZyCov-D. The company will now be initiating Phase III clinical trial in around 30,000 volunteers. READ MORE


BROKERAGE VIEW :: MOFSL on Federal Bank

CMP: Rs 68 | TP: Rs 80 (+18%) | Reco: Buy

>> FB posted a slight increase in sequential loan base, driven by healthy loan growth in its retail asset portfolio, led by gold loans. The bank’s liability franchise remains strong. CASA mix is improving, with retail deposit mix over 90%, which is likely to keep margin steady. It has maintained one of the highest LCRs among banks. On the asset quality front, PCR has strengthened to ~66% and the management expects restructuring of up to 3% of loans as collection efficiency has improved to 95% from Sep’20. We expect credit cost to remain elevated as slippages would increase during 2HFY21. We maintain our Buy rating with a TP of INR80 per share (0.9x Sep-22E ABV).

BROKERAGE VIEW :: MOFSL on M&M

CMP: Rs 733 | TP: Rs 840 (+15%) | Reco: Buy

>> Since Apr’20, MM has decided to exit five loss-making businesses as part of its decision to exit non-strategic, loss-making businesses. SYMC has been the biggest pain point and filing for bankruptcy is the last option it has to sell it.

>> MM is the best proxy of a rural recovery in the Auto segment, given its strong footing in Tractors and LCVs. For the SUV business, we are not building in any major traction and have not built-in benefits from any upcoming product launches.

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

>> The stock trades at implied core P/E of 15x/12.9x FY22E/23E EPS. Maintain Buy with a SoTP-based TP of INR840 per share (Mar-23E SoTP-based).

Trading strategies on Bharat Forge and Escorts by Vaishali Parekh

BUY BHARAT FORGE | CMP: Rs 538.10 | TARGET: Rs 585-590 | STOP LOSS: Rs 505
 
The stock has witnessed a short correction from 565 levels and has bottomed out near 505-510 levels, forming a good base. It is currently indicating a momentum pick up to improve the bias with a trend reversal. The RSI also has shown a trend reversal to signal a buy and has got strength to carry on the momentum in the coming days. We suggest to buy and accumulate this stock for an upside target of Rs 585-590, keeping the stop loss near Rs 505 levels. READ MORE

'Nifty eyeing 14,200; broader markets to outrun benchmarks'

Although there was some muted action seen in key indices during the previous week, the broader market just took off in the last couple of days. Hence, the real action lies in the broader end of the spectrum, which may continue to provide better trading opportunities. Traders are advised to keep focusing on thematic bets and should ideally avoid aggressive bets in indices. READ MORE

Bulk deals on the BSE as on Friday

Bulk deals on the NSE as on Friday

FIIs, DIIs buy shares worth nearly Rs 600 crore on Friday


Rupee check

Source: Bloomberg


Oil prices slip after OPEC warns of downside risks to demand

>> Oil prices edged lower on Monday, the first day of 2021 trading, ahead of a meeting of OPEC and allied producers to discuss output levels for February with fears for first-half demand seeping into the market as the coronavirus pandemic lingers.
 
>> Brent crude for March was at $51.76 a barrel, down 4 cents or 0.08% while US West Texas Intermediate crude for February fell 9 cents, or 0.2%, to $48.43 a barrel.

>> Mohammad Barkindo, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), said on Sunday that while crude demand is expected to rise by 5.9 million barrels per day (bpd) to 95.9 million bpd this year, the group sees plenty of downside demand risks in the first half of 2021.
 
"We are only beginning to emerge from a year of deep investment cuts, huge job losses and the worst crude oil demand destruction on record," he said.

(Source: Reuters)

China Data Watch :: China's Dec factory activity growth slows

>> The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 53.0 in Dec from November’s 54.9

>> Activity in China’s factory sector rose in December, however, increasing cost pressures slowed the pace of expansion.

>> Analysts polled by Reuters had forecast the headline reading would slip to 54.8

(Source: Reuters)

SGX Nifty suggests fresh lifetime-highs

>> At 8:12 am, the index was ruling 95 points higher at 14,111 levels, indicating a fresh record high for domestic indices. 

Asian market check

>> Asian share markets got the new year off to a solid start on expectations central banks will keep money super cheap while the rollout of coronavirus vaccines helps slowly revive the global economy.
 
>> MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1%, a whisker from a record high. Japan’s Nikkei rose 0.4% to reach peaks not seen since August 1990 while E-Mini futures for the S&P 500 were flat after touching a new all-time high in early trade.

(Source: Reuters)

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