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Vinod Nair, Head of Research at Geojit Financial Services:
Persistent concern over global inflation and likely Fed rate hike acted as the major headwinds for the domestic market to tumble for the third consecutive day.
High volatility due to rising bond yields is pressuring foreign investors to pull out funds from highly valued markets like India. As the recent earnings failed to excite the market, the on-going global volatility drained investor confidence.
Market Close: Benchmark indices ended lower on January 20 on the back of continues profit booking, with Nifty closing below 17800.
At close, the Sensex was down 634.20 points or 1.06% at 59,464.62, and the Nifty was down 181.40 points or 1.01% at 17,757. About 1593 shares have advanced, 1606 shares declined, and 64 shares are unchanged.
Bajaj Finserv, Infosys, TCS, Divis Lab and Bajaj Auto were the top Nifty losers, while gainers included Power Grid Corporation, Bharti Airtel, Grasim Industries, JSW Steel and Britannia Industries.
Except power, realty and metal, all other sectoral indices are trading in the red with auto, IT, FMCG and pharma indices down 0.8-1.7 percent. BSE midcap and smallcap indices ended flat.
JM Financial Private Equity to invest in BigHaat Agro
JM Financial Private Equity has finalized a total investment round of Rs 1,000 mn, along with co-investors, as a part of Series B fund raise in a Bengaluru based agri-digital platform, BigHaat Agro Pvt Ltd, to fund the Company’s current growth plans.
Beyond Next Ventures, one of the earlier investors in BigHaat also participated in the fund raise. Proceeds from the investment will support augmentation of the existing technology infrastructure and accelerate expansion of the company’s operations.
This marks the closing of the ninth investment by JM Financial India Fund II. Set up in 2015, BigHaat functions on a unique direct-to-farmer model and is transforming the agriculture value chain by leveraging science, data and technology.
JM Financial was quoting at Rs 74.70, up Rs 0.05, or 0.07 percent on the BSE.
SMS Pharma gets non-exclusive license to manufacture molnupiravir
SMS Pharmaceuticals has received a non-exclusive license through the Medicines Patent Pool (MPP) to manufacture molnupiravir, an investigational antiviral Covid-19 medicine, to increase broad access of treatment in 105 low-and middle income countries (UMIC).
SMS Pharmaceuticals was quoting at Rs 136.50, up Rs 5.40, or 4.12 percent on the BSE.
Strides Pharma partners medicines patent pool for commercialization of Molnupiravir
Strides Pharma Science announced its partnership with Medicines Patent Pool (MPP) to commercialize molnupiravir in the international markets, as per the company release.
Strides Pharma Science was quoting at Rs 421.55, down Rs 0.30, or 0.07 percent on the BSE.
Parth Nyati, Founder, Tradingo:
The Indian equity market is showing weakness for the third day in a row on the back of FIIs’ selling, rising US bond yields, and concerns of inflation, however this is just a correction that should be taken as a buying opportunity.
If we look at the trend of last three years then the market starts to correct between 15-20th January and then it witnesses post-budget rally. A similar trend is visible for this year as well, however I believe the market may witnesses recovery from here as we are near critical support levels.
Nifty is trading near critical support of 17650 which was the previous breakout level while 17500 is another important support level.
On the upside, 18000-18200 is an immediate resistance area, above this, we can expect a move towards an all-time high.
The texture of Bank Nifty is strong and it may outperform from here and I believe we can expect strong earnings by banking names.
Bajaj Finserv Q3 results:
Bajaj Finserv has posted 2.6 percent fall in its Q3 net profit at Rs 1,256 crore against Rs 1,289 crore and revenue was up 10.2% at Rs 17,587 crore versus Rs 15,958 crore, YoY.
Bajaj Finserv was quoting at Rs 17,248.40, down Rs 839.15, or 4.64 percent on the BSE.
Foreign Investors Bet On 76 Smallcaps, 7 Of Them Triple Investor Wealth In A Year
Moneycontrol’s analysis of BSE small-caps stocks shows there are about 76 companies where FIIs have consistently increased their stake in each of the four quarters of 2021
Market at 3 PMBenchmark indices erased some of the intraday losses but still down over 1 percent amid selling seen across the sectors.The Sensex was down 721.69 points or 1.20% at 59377.13, and the Nifty was down 207.10 points or 1.15% at 17731.30. About 1493 shares have advanced, 1685 shares declined, and 69 shares are unchanged.
Bank of Maharashtra Q3 earnings:
Bank of Maharashtra has reported net profit at Rs 324.6 crore versus Rs 154.1 crore and net interest income (NII) was up 16.9 percent at Rs 1,527 crore versus Rs 1,306 crore, YoY.
The Gross NPA was at 4.73 percent versus 5.56 percent and net NPA was at 1.24 percent versus 1.73 percent, QoQ.
Bank of Maharashtra was quoting at Rs 21.00, down Rs 0.50, or 2.33 percent on the BSE.
Puneet Maheshwari- Director, Upstox:
In the past year, digital brokerages offered investors easy and convenient access to a range of products and services. In a welcome development, SEBI announced a shorter settlement cycle, called T+1, as an incentive to the investor community.
Government may consider relieving traders of the securities transaction tax (STT). By doing so, new investors would be encouraged to start trading. There needs to be more participation in indexes or exchange-traded funds. By offering a lock-in and tax incentives on the lines of equity-linked tax savings schemes, the government can encourage long-term savings in Nifty or Sensex. A greater allocation by the government-owned provident funds and pension funds into equity markets could also help.
Given the enormous increase in medical expenses due to Covid-19, we urge the government to hike the standard deduction from the current Rs 50,000 to Rs 1,00,000. This will further lower the tax burden and put more money in the hands of the salaried class.
The government should remove the concept of speculative income and restrict income classification arising from capital market transactions to business income, long-term capital gains and short-term capital gains. We hope that the Government considers tax exemption up to Rs 1,00,000 on short-term capital gains tax as well as tax exemption on dividends up to Rs 50,000 for senior citizens.
The budget 2022 should help build momentum in the equity markets and every possible avenue must be considered by the government to make this happen.