Ajit Mishra, VP – Technical Research, Religare Broking
Markets traded under pressure and lost over a percent amid mixed cues. After the flat start, the Nifty gradually inched lower as the day progressed and finally settled around the day’s low to close at 18,042 levels.
The decline was widespread wherein realty, metal and energy were among the top losers. The broader indices too traded in tandem and ended with a cut of over a percent each.
This decline has engulfed the gains of the last four sessions in Nifty and selling pressure in the banking index, which was acting as a savior so far, has further deteriorated the mood. And, we feel the pressure may increase below 18,000 levels in Nifty. Keeping in mind the scenario, it is prudent to limit leveraged positions and wait for clarity.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Investors offloaded their holdings ahead of the outcome of the US FOMC minutes that would indicate the signs of interest rate hike trajectory going ahead.
Other global macro-economic concerns like Chinese slowdown due to higher Covid cases, sliding crude oil prices, and the persisting geo-political tension continue to weigh on investors’ minds. There could be heightened volatility in coming sessions due to rising uncertainty.
Vinod Nair, Head of Research at Geojit Financial Services
The domestic market affected by the worries in the global market, traded with deep cuts. Fears over aggressive rate hikes resurfaced ahead of the release of Fed meeting minutes, a meeting that left the door open for additional hikes.
Apart from global cues, the domestic market will pay close attention to corporate earnings. India’s services PMI expanded to 58.5 in December owing to stronger growth in new business.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty faced resistance near a rising trendline & the key daily moving averages for yet another session. Thereon the index tumbled sharply towards 18,000. The bulls managed to defend the key psychological level for the day.
Unless Nifty breaks 18,000 on the downside, it can once again take a leap towards 18,250-18,300. On the other hand, breach of 18,000 will allow the Nifty to slide further towards the lower end of the short term consolidation i.e. 17,800.
Indian rupee closed higher at 82.80 per dollar against previous close of 82.89.
Market Close: Benchmark indices ended lower on January 4 amid selling across the sectors.
At Close, the Sensex was down 636.75 points or 1.04% at 60,657.45, and the Nifty was down 189.50 points or 1.04% at 18,043. About 1154 shares have advanced, 2230 shares declined, and 135 shares are unchanged.
JSW Steel, Hindalco Industries, Coal India, Tata Steel and ONGC were among the top losers on the Nifty. However, gainers were Divis Labs, Maruti Suzuki, HDFC Life, Dr Reddy’s Laboratories and UltraTech Cement.
All the sectoral indices ended in the red.
BSE midcap and smallcap indices down nearly 1 percent each.
Gujarat Industries Power awards EPC contract of Rs 259 crore
Board of Directors of Gujarat Industries Power Company, at its meeting held on January 3, 2023, approved the award of EPC contract to M/s. Bhimji Velji Sorathia Construction Pvt. Ltd. at the cost of Rs 259 crores approximately for Road, Drain and Pond Works of Solar / Wind / Hybrid RE Park of 2375 MW capacity at Khavda, Great Rann of Kutch area, Gujarat.
Gujarat Industries Power Co. was quoting at Rs 82.50, down Rs 1.35, or 1.61 percent.
Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas:
Indian Rupee appreciated by 0.19% on Wednesday on sharp decline in crude oil prices and a weak US Dollar. Robust macroeconomic data also supported the domestic currency. Composite PMI increased to 59.4 in December from 56.7 in November while Services PMI rose to 58.5 in December, topping estimates of 55.5 and November’s reading of 56.4. However, weak domestic markets and selling by FIIs capped sharp gains. US Dollar declined on positive global equities and upbeat economic data from Europe.
We expect Rupee to trade with a slight negative bias as sustained foreign outflows may continue to put downside pressure on Rupee while weak crude oil prices may prevent sharp fall. Traders may also remain cautious ahead of FOMC minutes and ISM manufacturing PMI and JOLTS job openings data from US. USDINR spot price is expected to trade in a range of Rs 82.30 to Rs 83.30.
Macquarie maintains ‘Outperform’ rating on Avenue Supermarts-Outperform call, target at Rs 4,650 per share
-Below-than-expected commentary & slow store additions key takeaways
-Cut FY23/FY24/FY25 EPS estimates by 5 percent each
-Slower recovery is a near-term risk
-Benign competitive intensity & value positioning makes us constructive
Arun Agarwal, VP – Fundamental Research, Kotak Securities
Automotive OEM’s wholesale volume performance was mixed in the month of December 2022. Domestic commercial vehicle and tractor segment performance was better than our expectation. Commercial vehicle segment volumes received boost from healthy growth in the medium & heavy commercial vehicle (M&HCV) segment.
Turnaround witnessed in tractor demand over the past few months continued in December 2022. Domestic passenger vehicle segment volumes were broadly in line with our estimates.
Healthy order book is expected to support passenger vehicle segment growth in the near term. Two wheeler industry performance was weak likely due to channel inventory correction and muted demand in the domestic markets and continued challenges in export geographies.