Sensex gives up 50K, ends 167 pts down; Nifty at 14,590; PSBs, metals hit

Stock market updates: A day that began with a historic feat of touching the 50,000-mark milestone on the S&P BSE Sensex, turned into a nightmare for investors as a massive bloodbath awashed investor wealth. Sentiment took a hit after fire broke out at the Serum Institute of India, the manufacturer of Covidshield Vaccine.

The benchmark Sensex tumbled 785 points from record high to hit an intra-day low of 49,399. However, the sell-off was quickly bought into and the BSE barometer of 30 shares ended at 49,625 levels, down 167 points or 0.34 per cent.

ONGC, Bharti Airtel, State Bank of India, and IndusInd Bank were the top laggards on the index, down between 2 per cent and 4 per cent. Weightage-wise, profit-booking in HDFC twins, Airtel, TCS, ITC, and SBI dragged the index lower.

On the NSE, the Nifty50 index settled at 14,590 levels, down 54 points or 0.37 per cent.

All the key sectoral indices ended the day in a sea of red. Nifty PSU Bank index declined 3 per cent, followed by cuts in Nifty Realty index (down 2.3 per cent) and Nifty Metal index (down 2 per cent).


Earlier in the day, liquidity expansion by the central bank supported by FII inflows, a V-shaped economic recovery aided by the discovery of Covid-19 vaccine, and swearing-in of Joe Biden as the new president of the United States propelled the S&P BSE Sensex above the 50,000-mark for the first time and towards a record peak of 50,184. The Nifty50, too, hit a record peak of 14,753 levels.

Going-ahead, analysts expect leaner balance sheet of India corporates along with government measures for growth to lift the economic growth ahead. The same is likely to resonate in capital markets, thereby keeping the markets buoyant in the long term. READ MORE

Global markets

World stocks racked up record highs on Thursday and the dollar fell, as investors bet major stimulus from new U.S. President Joe Biden and unswerving global central bank support would cushion the coronavirus’s economic damage.

Europe's traders hoisted the FTSE, DAX and CAC 40 0.2 per cent to 0.4 per cent higher and pushed up the euro again as they also waited for the European Central Bank's first policy meeting of the year.

With Wall Street and Asian stocks both reaching new highs overnight, MSCI's global index covering nearly 50 countries added 0.3 per cent.


MARKET CLOSING COMMENT :: Sumeet Bagadia, Executive Director, Choice Broking.

Following the inaugural speech of U.S. President Joe Biden yesterday and in anticipation of improved global trade, domestic equity indices opened higher today and touched the psychologically significant level of 50,000. However profit booking in the afternoon session pulled the markets down, the benchmark index ended the day around 0.35% down. All sectors ended with losses today with PSU Bank, Realty and Metal stocks being the top laggards. Broader markets underperformed in today’s session, the Midcap and Smallcap indices ended the day 1.2% and 0.6% down. For stock specific performance, Tata Motors, Bajaj Finance and Reliance Industries were the top gainers in the index, while ONGC, Tata Steel and Coal India were the top losers. Going ahead investors will keep an eye on major policy announcements of Joe Biden and watch the earnings release of index heavyweights like Reliance Industries tomorrow.
After a positive opening, Nifty set a new benchmark at 14753.55 levels but corrected from the higher levels and closed on a negative note with marginal loss of 13 points. Bank Nifty slipped more than 1% to close 32186.90 levels. Major fall has been noticed in Nifty Metal, PSE, IT, & FMCG sectors, Nifty Midcap & Smallcap indices, which also showed some profit booking and closed into negative territory. On the stock front, TATAMOTORS, BAJFINANCE, RELIANCE has contributed some gain for the day while TATASTEEL, GAIL, COAL INDIA witnessed further correction. Technically, the benchmark index has been trading in a Higher Top Higher Bottom formation since the last days. It shows a continuation of the trend. Moreover, Nifty has been trading above its 21 Days Moving Average which supports the bullish trend for the near term. Now, the Nifty has resistance at 14750 while downside support comes at 14500.

TECH VIEW :: Rahul Sharma, Head – Technical & Derivatives Research, JM Financial Services

What a day for Sensex to hit 50k.. 21st Day of the 21st Year, of the 21st Century! However, we believe this is more of a mental milestone but an important one. Since booking the profit is better than looking at the profit, we advise to take some profits around Nifty 14,800/15,000 levels & keep the portfolio’s hedged with Nifty Put Options of February Expiry. As a Budget Strategy for traders, it's best to buy the expectation & sell the realization. Maintain trailing stop loss of 14,440 for positional longs in Nifty

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Research, HDFC Securities

Indian equity benchmark indices failed to hold on to higher intraday levels and ended with losses on January 21 led by weekly F&O expiry and nervousness spreading ahead of Union Budget due on Feb 01. Sensex hit an all-time high of 50,184.01 in intraday trade. At close, the Nifty was at 14,590.35, down 54 points or 0.37 percent.
Volumes on the NSE were up again after a few days of soft volumes. Among sectors, Nifty PSU Bank, Realty, Metal, Media, Pharma, Bank fell the most. Broader markets too fell more than the Nifty with the midcap index falling 1.2% while the smallcap index declined 0.6%.
Nifty has shown signs of profit taking after such a rise. Technically it has formed a Dark Cloud Cover on daily charts, showing possibility of follow on selling.  The steepness of selling in the afternoon suggests that the Nifty could keep running into resistance/profit taking over the next few sessions.

TECH VIEW :: Ashis Biswas, Head of Technical Research, CapitalVia Global Research

The market manages to hold above 14600 (Nifty 50 Index level). Sustaining above 14600 is the key and should attract further liquidity into the market to propel the ongoing long-term positive trend. The market should gain momentum and extend the rally till 14800/14930. We have observed volatility to expand in today’s trading session, yet market breadth is set to stay positive, strengthening the view of a short-term bullish outlook

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

Faster economic recovery even during a pandemic, the rising expectation on Joe Biden’s stimulus package and union budget has taken the market to new highs. The Indian market was boosted by sustained foreign inflows and a better start to Q3 corporate earnings. The market is expected to maintain its momentum and remain expensive given ample liquidity & high earnings growth. Going ahead domestic market will keep a track on high budget expectations and global market, which will focus on the policies to be adopted by the new president of the U.S

PSU Bank index declines the most

ALERT :: India VIX ends around 3% higher

>> The index settled at 23 levels

Market stats :: BSE m-cap slips to Rs 196.6 trillion-mark after hitting record high of Rs 199 trillion

Sectoral trends on NSE at Close

Sensex Heatmap at Close


The benchmark Sensex tumbled 785 points from record high to hit an intra-day low of 49,399. However, the sell-off was quickly bought into and the BSE barometer of 30 shares ended at 49,625 levels, down 167 points or 0.34 per cent.
On the NSE, the Nifty50 index settled at 14,590 levels, down 54 points or 0.37 per cent.

With Sensex at 50,000, which sectors & stocks are still investment worthy?

A nearly two-fold jump in the BSE barometer Sensex came on the back of liquidity gush, FII inflows and economic recovery. Covid-19 vaccine development, Q3 earnings and a new president in the United States further boosted the market bulls to achieve this historic feat. LISTEN TO THE PODCAST HERE

NEWS FLASH :: Fire breaks out at Terminal 1 gate of Serum Institute, Pune

- Fire breaks out at under construction facility at Manjari plant, SII
- Fire won't impact Covishield supply

(Source: TV News)

Bajaj Auto Q3 consolidated PAT grows 30% YoY to Rs 1,716 crore

Two-wheeler major Bajaj Auto, on Thursday, reported consolidated net profit of Rs 1,716.26 crore for the October-December quarter of FY21 (Q3FY21), up 29.7 per cent, from a profit of Rs 1,322.4 crore in the year-ago period, primarily on the back of highest-ever exports. Sequentially, however, the profit surged 43.74 per cent from Rs 1,193.97 crore posted in the September quarter of FY21. The company's revenue grew 16.62 per cent YoY to Rs 8,909.88 crore, as against Rs 7,639.66 crore in Q3FY20. READ MORE

Kajaria Ceramics gains 7%, hits record high on strong Q3 operating margin

Shares of Kajaria Ceramics hit a record high of Rs 839, up 7 per cent, on the BSE on Thursday after the company said operating margins have touched a new high of 21.68 per cent in the October-December quarter (Q3FY21). The company said its sales volumes have improved by 11 per cent while sales have increased by 13 per cent over the corresponding quarter of the previous year. READ MORE

Analysts up earnings estimates for Havells after company reports strong Q3

Demand was healthy aided due to festivals sales and footfalls reviving, but top line growth was far higher than estimates. Revenue was up 39 per cent year-on-year to all-time high of Rs 3,165 crore in the October-December period aided by strong growth across all segments. That compares with consensus estimates of Rs 2,627 crore. READ MORE

Dec Quarter Result :: Bajaj Auto PAT at Rs 1,556.28 crore

Dec Quarter Result :: Bandhan Bank posts net profit of Rs 630 crore

NEWS ALERT | Asian Paints posts Q3 net profit of Rs 1,265.4 crore

-- Revenue at Rs 6,788.5 crore

-- Ebitda comes in at Rs 1,787.9 crore; Ebitda margin at 26.3 per cent

MARKET UPDATE:: Nifty MidCap index turns negative

Raymond board approves raising up to Rs 200 crore via NCDs

Textiles major Raymond on Thursday said its board has approved raising up to Rs 200 crore through non-convertible debentures (NCDs) on a private placement basis. "A meeting of the committee of board of directors of the company was held today i.e. on January 21, 2021. The committee of directors at the said meeting... approved the issue of non-convertible debentures for an amount up to Rs 200 crore on private placement basis," Raymond said in a regulatory filing. (Text: PTI)

Economy getting over pandemic, growth headed for 'glorious summer': RBI

The economy has come out of the pandemic crisis and recovery is getting stronger, said the Reserve Bank of India (RBI). The vaccination drive against the pandemic has bring in a new optimism, and “barring the visitation of another wave, the worst is behind us," the RBI said in its January Bulletin on Wednesday. “Recent high frequency indicators suggest that the recovery is getting stronger in its traction and soon the winter of our discontent will be made glorious summer," said the RBI, quoting William Shakespeare to describe the state of the economy in its bulletin. READ MORE

NEWS ALERT :: NALCO to consider share buyback on January 27

Saregama India advances 13% on strong December quarter results

Shares of Saregama India (SIL) moved higher by 13 per cent to Rs 1,011 on the BSE in the intra-day trade on Thursday after the company reported a three-fold jump in net profit at Rs 31.6 crore for December 2020 quarter (Q3FY21). The company had reported a profit of Rs 10.5 crore in the year-ago quarter. On quarter on quarter (QoQ) basis, net profit grew 9 per cent from Rs 28.9 crore logged in September quarter (Q2FY21). In the past three months, the stock has rallied 76 per cent, as against a 23 per cent rise in the S&P BSE Sensex. READ MORE

European indices tick up in early deals

(Source: Reuters)

MARKET UPDATE:: RIL, Bajaj Finance, and ICICI Bank top contributors to Sensex's gain today

Hindustan Zinc dips 3% on profit booking post December quarter results

During the quarter, the company’s net profit increased 36 per cent year on year (YoY) at Rs 2,198 crore against Rs 1,620 crore in the Q3FY20. Total revenue grew 29 per cent YoY at Rs 6,033 crore. EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved 519 basis points (bps) at 54 per cent from 49 per cent in a year ago quarter. READ MORE

Sensex hits 50,000 :: Comment by Naveen Kulkarni, Chief Investment Officer, Axis Securities

Equity markets have staged a significant recovery across the world. The Indian equity market has rallied a whopping 93% to 14,738 from the March lows. Today, Sensex has crossed a physiological benchmark level of 50,000, which is almost double from the March low. This journey has been a remarkable one for the Sensex, with a CAGR of 10% in the last ten years, and the final 10,000 points rally happened in the past couple of months only. Market breadth is in favor of advances, indicating that overall investors' sentiments have improved, further supported by better than expected Q3 earnings. Apart from this, liquidity is continuing to be in favor of the Indian market. FIIs are continuously buying Indian equities, while the quantum of DIIs selling has reduced significantly in the last few days, which is a positive for overall sentiments. The outlook for earnings has improved with a faster than expected economic recovery. If positive earnings momentum sustains, then we could see more such milestones in the time to come

Sensex contributors at this hour

Brazil, New Zealand, India best-performing markets under Trump rule

Brazil, New Zealand and India were the best-performing equity markets globally under the Donald Trump presidency. The Brazil’s Bovespa has surged 87 per cent followed by New Zealand’s NZX 50 and India’s Sensex nearly 85 per cent each since Trump’s inauguration on January 20, 2017. All the returns are in local currency terms. READ MORE

Road to 50K: Sensex jumps 10,000 pts in 74 sessions; these are top gainers

The BSE barometer Sensex scripted history on Thursday, January 21, when it scaled Mount 50,000 for the first time. The 30-pack index galloped from 40,000-mark hit on October 8, 2020 to 50,000 in just 74 sessions and from 45,000 level (scaled on November 4, 2020) in mere 32 trading days. When the index had plummeted to the lows of 25,000 at the peak of the Covid-19 crisis, there was little to no one who had envisaged such a meteoric rise from the index's three-year low. READ MORE

BUZZING STOCK:: SML Isuzu surges 15%

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

Sensex@50000 is great news not only for the market and investors but for the economy also. Markets are barometers of the economy with a potential to discount the future. If this is true, the Indian economy is on a strong recovery path. If the recovery in growth and corporate earnings, currently underway in India, gathers momentum, the markets may further surprise on the upside. But it is important to appreciate that the market is overvalued from the short- term perspective. At high levels, the market is vulnerable to a correction. Investors can utilize the current euphoria to get rid of low-grade stocks from the portfolio.

Sensex hits 50,000 :: Comment by Jyoti Roy, DVP – Equity Strategist at Angel Broking

The Sensex has hit levels of 50,000 on the back of strong global cues post inauguration of Joe Biden as the new president of the US. We expect global cues to remain strong in the near future which will lead to global flows remaining strong over the near term. Markets will also look to  the Union Budget on the 1st of February and the ongoing Q3FY2021 results season for further cues.

However valuations at current levels are expensive with the Senses trading at P/E multiples of  ~21xFY2022 EPS estimates. While the markets may be expensive at current levels we believe that India equities will command a premium given that we are still in the early part of an earnings recovery cycle where multiples tend to be higher. However if we look at the markets on an FY2023 basis then valuations appear to be more reasonable at ~17.5x. Moreover we believe that liquidity will keep coming into India given zero interest rates in developed countries and continued monetary stimulus by the central banks globally. Therefore we continue to remain positive on the Nifty from a medium to long term perspective despite any possible short term volatility in the markets. Corrections if any are likely to be short lived and should be used as an opportunity to buy into the market from a long term perspective.

BS Podcast :: Indigo Paints or Home First Finance, which IPO is a safe investment bet?

The price band of Indigo paints has been fixed at Rs 1,488-1,490 per share for the initial share sale. Mortgage financier Home First Finance Company has fixed a price band of Rs 517-518 a share for its initial share-sale. READ MORE

Tech view: Sensex may hit 54,000 within next six months, charts show

The S&P BSE Sensex achieved a historical milestone on Thursday when it crossed the level of 50,000 for the first time ever. The liquidity-driven rally in the stock markets across the globe has seen the domestic benchmark indices rebound from March lows and scale fresh new highs almost on a daily basis. In fact, Sensex has already rallied 94.2 per cent (till Wednesday's closing) from its March low of 25,639. At the same time, the Indian markets are extremely stretched with market-cap exceeding 115 per cent of GDP with an expensive PE Ratio of 40x. READ MORE

MARKET VIEW | Motilal Oswal, MD&CEO, Motilal Oswal Financial Services

Sensex touched the historical levels of 50,000 today for the first time ever. Indian markets have been witnessing strong momentum over the past few months on the hopes of a faster economic recovery after the pandemic lockdown. Also positive global cues, sustained FII inflows and strong corporate earnings kept the sentiments high.  Buzz around the upcoming Budget has also added strength to the markets. The  Budget could potentially lay the foundation for a long term economic growth path. Overall we expect the market to continue its upward journey on the back of healthy corporate earnings, strong liquidity, positive developments on the vaccine front, broad based economic recovery and low interest rates.

Future Retail, Future Enterprises hit upper circuit after Sebi clears deal with RIL

Shares of Future Retail and Future Enterprises rose nearly 5 per cent and hit upper circuit limits after Sebi cleared Future Group's proposed multi-billion dollar deal with Reliance Industries Ltd. On the BSE, Future Retail Ltd's shares hit the upper circuit of Rs 81.35, rising 4.97 per cent over the previous close. Future Enterprises Ltd's stock gained 4.98 per cent to touch the upper circuit limit of Rs 12.01. (Text: PTI)

Tata Motors, IDFC First Bank, JK Tyre rally over 50% in one month

Tata Motors hit a 31-month high of Rs 295, up 7 per cent in the intra-day deals today, and was the top gainer among the list. The stock has zoomed 80 per cent in the past one month on Tesla tie-up buzz. The stock of the Tata Group commercial vehicles company was trading at its highest level since June 2018. Moreover, its market capitalisation swell to Rs 90,708 crore at 11:40 am, inching towards the Rs 1-trillion mark. READ MORE

Sensex hits 50K: Investment strategies to play the markets ahead of Budget

Maheshwari of Centrum Broking, meanwhile, says that the Union Budget has lost its significance over the past few years and is unlikely to sway the markets in an extreme direction.
“The government has rolled out reforms on the supply side post the Covid-19 pandemic. Markets now expect the government to take steps to spur demand in the economy. Therefore, this massive rally ahead of the Budget shouldn’t be a cause for worry. The rally is here to stay as the liquidity won’t go anytime soon,” he explains. READ MORE

Bajaj Finance: Stress in consumer pockets real, stock worth may be tested

While a bit off from the all-time of Rs 5,372 that Bajaj Finance stock touched just ahead of the new year, for investors who may have brushed aside some critical concern– that of growth and asset quality, owing to Bajaj Finance’s leadership position in the consumer finance business and also its ability to procure capital at the lowest ever price (7.78 per cent in Q3) among non-banking finance companies. READ MORE

Sensex hits 50,000 :: Comment by Nilesh Shah, Group President & MD, Kotak Mahindra AMC

Sensex touching 50,000 in 2021 is like Indian cricket team winning test series in Australia against all odds of Covid 19. While economic data is about the past which is improving month on month, Sensex is reflecting the positivity about the future

SECTOR WATCH:: Auto stocks in focus

TATA MOTORS 294.10 6.98
ASHOK LEYLAND 122.60 0.78
TATA MOTORS-DVR 111.95 5.81
M & M 833.05 1.08
TVS MOTOR CO. 514.70 1.08
» More

MARKET UPDATE:: M-cap of listed firms on the BSE touches a record high of Rs 199 trillion

Consumer Durables index at new high; Voltas, Crompton, Polycab up over 5%

Shares of consumer durables companies, including electronics products and household appliances, were on a roll at the bourses on Thursday after Havells India reported a strong set of numbers for the quarter ended December 2020 (Q3FY21) on the back of strong festive demand, market share gains and increased penetration in smaller towns. READ MORE

HDFC to sell 24.48% stake in Good Host for Rs 232.81 crore

Mortgage lender HDFC Ltd has signed an agreement to sell its 24.48 per cent stake in Good Host, a company engaged in the business of managing student housing facilities, for Rs 232.81 crore, according to a regulatory filing. (Text: PTI)

Bajaj Auto gains ahead of Q3 numbers

Market View :: Deepak Jasani, Head of Retail Research, HDFC Securities

It is a momentous day for India's capital markets as the Sensex touched 50,000 on Jan 21. The gain of last 5,000 points has come in just 32 trading sessions. Expectations of turnaround in the economy post Covid vaccinations and continued FPI inflows have led to this kind of gains for Indian markets in a globally low interest scenario. Post the Forthcoming Union Budget we may witness a temporary brake to the uptrend and further upmoves from hereon will depend on the pace of economic and corporate earnings growth and the trajectory of inflation and interest rates in India  and the world.

RIL hits over 2-month high on Sebi nod to Future Group-Reliance Retail deal

Shares of Reliance Industries (RIL) extended their winning run to the fourth straight day, up 3 per cent on the BSE, to hit an over two-month high of Rs 2,110 in Thursday's early morning trade. The stock was trading at its highest level since October 23, 2020. It hit a record high of Rs 2,369, on September 16, 2020. Despite a run-up of 14 per cent from its low of Rs 1,856 touched on December 21, the stock has underperformed the market and fallen 1 per cent in the past month as against a 23 per cent rally in the S&P BSE Sensex. READ MORE

HDFC Bank dips 1% in an otherwise firm market


BUZZING STOCK :: Aditya Birla Fashion and Retail rises 4%

Competition Commission of India approved the acquisition of 7.8 per cent minority stake in Aditya Birla Fashion by Flipkart Investments. With this infusion, Flipkart Group will own a 7.8 per cent equity stake in ABFRL on a fully diluted basis.

Havells India hits new high on strong December quarter results

Shares of Havells India hit a new high of Rs 1,086 on Thursday after rallying 6 per cent on the BSE in early morning trade after the company reported a strong set of numbers for the quarter ended December 2020 (Q3FY21). Havells India's standalone net profit for Q3FY21 jumped 75 per cent year on year (YoY) at Rs 349 crore, on the back of strong revenue growth. READ MORE

RESULT REACTION :: GMM Pfaudler drops nearly 3%

The company reported a consolidated profit of Rs 23.2 crore in Q3 FY21 against Rs 21 crore in Q3 FY20; revenue increased to Rs 201.8 crore from Rs 156 crore YoY.

Top gainers on the BSE at this hour

GATEWAY DISTR. 158.40 12.34
ADITYA BIR. FAS. 186.05 7.26
JK TYRE & INDUST 113.40 6.73
HAVELLS INDIA 1075.50 5.46
FUTURE RETAIL 81.35 4.97
» More on Top Gainers

Havells jumps 5% on strong Q3 numbers

Consumer electrical goods maker Havells India reported a 74.52 per cent YoY jump in its consolidated net profit to Rs 350.14 crore for the third quarter ended on December 2020. Its revenue was up 39.67 per cent YoY to Rs 3,175.20 crore.

Opinion :: Sensex touching 50,000 was not a question of 'whether' but 'when'

The number 50 has a lot of significance. Hitting the age of 50 is an important landmark in everyone’s life. Fifty weeks of run was the dream of every movie producer and actor till OTT platforms took over. A golden wedding anniversary confirms how successful a marriage has been…… and so on. Similarly, Sensex touching 50,000 was not a question of ‘whether’ – but ‘when’? Just about 10 months back on March 23 we were staring at 25,000 and nobody’s wildest projections would have indicated 50,000 so soon as indicated in my earlier article – Expect the Unexpected in stock markets. READ MORE
Ambareesh Baliga, independent market expert (Photo: Kamlesh Pednekar)

Result Reaction :: LTTS silps 2%

>> The company posted an 8.8 per cent decline in consolidated net profit to Rs 186.1 crore for the December 2020 quarter as against Rs 204.1 crore in the year-ago period.

Axis Bank gains in trade on CCI approval to Max deal

>> Competition Commission of India approved the acquisition of stake in Max Life Insurance by Axis Bank, Axis Capital and Axis Securities.

Reliance Industries up 1% on Sebi nod to Future deal

>> Sebi gave a go-ahead to Future Group's scheme of arrangement and sale of assets to Reliance Industries, based on which the BSE also granted its "no adverse observation" report to the Rs 24,713-crore deal.

Bajaj Finserv jumps 3%

>> Bajaj Finserv, on Wednesday, reported a 15 per cent YoY rise in its consolidated profit at Rs 1,290 crore for the third quarter ended December. Total income rose to Rs 15,960.72 crore as against Rs 14,561 crore in the year-ago period.

Bajaj Finance rallies over 2.5% post Q3 earnings

>> The company's net profit fell 30 per cent to Rs 1,049 crore in the December quarter compared to Rs 1,488 crore posted in the same period last year. The lender also said that it will foray into the payments space in the ongoing quarter.

Bajaj Auto trades higher ahead of Q3 earnings

Sectoral trends on NSE :: Auto, financials rally

Sensex Heatmap :: Bajaj Group in focus


Opening Bell :: SENSEX SCALES MOUNT 50,000


Sensex Heatmap | Top gainers & losers in pre-open trade

Pre-open session :: Nifty nears 14,800

Sensex tops 50,000 mark in pre-open session

BROKERAGE VIEW :: Emkay Global raises Bajaj Finance target price post Q3 nos

  • Bajaj Finance (BAF) reported a PAT of Rs 11.5 bn (-29% yoy, +18.8% qoq), aided by increasing momentum across lending segments and improving asset quality. Core quarterly disbursements of Rs 80bn is another indication of returning normalization. Management lowered its provision guidance for FY21 by Rs5bn amid healthy recoveries.
  • Adjusting for asset recognition standstill, GNPA/NNPA for the quarter stood at 2.9%/1.2%. BAF undertook write-offs worth Rs 23.4bn toward retail borrowers (mainly auto loans) affected by Covid-19. Additionally, the company offered the RBI-led restructuring worth Rs 20.4bn (1.42% of outstanding AUM) to a specific set of customers.
  • Management showcased a business transformation journey by creating a seamless credit experience in a frictionless manner. BAF is also in process of launching an integrated payment solution. We believe that as BAF is attaining saturation in customer additions, the move is intended to increase wallet share from the same customers.
  • We increase FY21E/22E/23E EPS by 17%/15%/8% and realign risk-free and terminal growth rates. We raise our TP to Rs 5,200 (Rs 2,950 previously), corresponding to ~6.1x FY23E Adj Book. We will keep an eye on 1) possible stress in the flexi loan book, 2) RBI’s regulatory norms for NBFCs, and 3) BAF’s transformation journey.

Stocks to watch: RIL, Axis Bank, Bajaj Auto, Bajaj Finance, Lauras Labs

Reliance Industries, Future Retail: Sebi gave a go-ahead to Future Group's scheme of arrangement and sale of assets to Reliance Industries, based on which the BSE also granted its "no adverse observation" report to the Rs 24,713-crore deal.
Aditya Birla Fashion: Competition Commission of India approved the acquisition of 7.8 per cent minority stake in Aditya Birla Fashion by Flipkart Investments. With this infusion, Flipkart Group will own a 7.8 per cent equity stake in ABFRL on a fully diluted basis. READ MORE

Result today :: Bajaj Auto's Q3 Profit may rise over 10% on volume, ASP growth

Analysts expect Bajaj Auto to announce a decent set of numbers, on Thursday, for the December quarter of FY21 (Q3FY21), with net profit expected to grow around 10 per cent year-on-year (YoY), on the back of volume uptick. The company had reported revenue and profit of Rs 7,639.7 crore and Rs 1,262.6 crore, respectively in the year-ago quarter. READ MORE

'Near-term gains in gold, silver limited amid dollar strength'

Gold market once again remained caught in a tug of war between expectations of an improving economy and rising inflation pressures as Joe Biden took office. Hopes of a massive stimulus bolstered the prospects for precious metals. Janet Yellen said that tax cut in 2017 for large corporation should be repelled, helping gold/silver to rally. Gold has resistance around $1,865 and needs to break that level for momentum to take it above $1,900. $1,820-$1,810 is the immediate support and we believe gold will trade in range until market gets more clarity on the new administration's policies READ MORE

'Nifty needs to hold 14,500 to sustain upside'

As per weekly option data, significant put writing on lower strikes, ranging from 14,500 to 14,600, is witnessed which shows that Nifty might take support in the zone of 14,500 as maximum put OI is placed here. We can witness profit booking only if Nifty breaks level of 14,500. Therefore, traders should try to create long position keeping close eye on 14,500. READ MORE

Bulk deals on the BSE as on Wednesday

Bulk deals on the NSE as on Wednesday

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

Rupee check

Source: Bloomberg

Oil slips on surprise rise in US crude stocks

>> Oil prices fell on Thursday after data showed US crude stocks unexpectedly rose last week, reigniting worries about pandemic restrictions cutting into fuel demand.

>> US West Texas Intermediate (WTI) crude futures fell 27 cents, or 0.5%, to $53.04 a barrel, following two days of gains on hopes of massive COVID-19 relief spending under new U.S. President Joe Biden.
>> Brent crude futures similarly dropped 26 cents, or 0.5%, to $55.82 a barrel.

(Source: Reuters)

SGX Nifty Update

>> At 8:19 am, the index was at 14,681 levels, up 37 points

US stocks :: Wall Street hits fresh record

US stocks closed at record highs overnight as Joe Biden was sworn in as the 46th US president, while solid results from Netflix sparked a rally in shares of “stay-at-home” beneficiaries. Biden is expected to waste little time turning the page on the Trump era, signing 15 executive actions straightaway on issues ranging from the Covid-19 pandemic to the economy to climate change.
Overall, the Dow Jones rose 0.83 per cent, the S&P 500 gained 1.39 per cent and the Nasdaq added 1.97 per cent.

Asian market check

Asian markets followed Wall Street's lead and rose early Thursday. Australia’s ASX 200 jumped more than half a per cent and Japan's Nikkei was up 0.7 per cent. Hong Kong’s Hang Seng index, meanwhile, slid 0.2 per cent.

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