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Dhaval Ajmera, Director of Ajmera Realty and Infra Ltd on Maharashtra Government waving property tax on residential units up to 500 sq ft.: The decision to waive the property tax for housing units under 500 sq ft. area is yet another step to accentuate demand. The earlier announced waiver was only on the general component of property tax, the current move makes it holistic. The demand stimulus from the state government is surely going to sustain positive sentiment amongst the home buyers.
Wall Street Week Ahead: Defensive stocks may be ripe for reversal after stellar December
Investors have piled into traditionally defensive stocks in the last weeks of the year, spurring a rally some believe may lose steam early in 2022. The S&P 500’s top-performing sectors this month are consumer staples, real estate investment trusts, healthcare and utilities. Each of the sectors, which are viewed as popular destinations during times of uncertainty, have risen by 9% or more in December and outpaced the broader index’s gain of about 5%.
By contrast, the S&P 500’s energy and information technology sectors, among the year’s best performers, are up 2.9% and 3.3% for December. The broader index is up 27% in 2021 and on track for its third straight year of double-digit gains.
Market update at 12 PM: Sensex is up 619.95 points or 1.06% at 58873.77, and the Nifty jumped 179 points or 1.03% at 17533. Bajaj Finserv, Coal India and Eicher Motors are the top gainers while Tata Motors, TCS and RBL Bank are the most active stocks.
Auto, financials, IT and realty added over a percent each while the midcap and smallcap indices are also rading in the green.
Rohit Poddar, Managing Director, Poddar Housing and Development on Maharashtra government waiving property tax on residential units up to 500 sq ft: It is a welcome move of waiving off the property tax. This will certainly impact the lives of nearly 16 lakh residential homes in Mumbai. We believe it will be offset by the real estate industry rebounding, with the mid-to upper-end segments purchasing flats in unprecedented numbers. The revenue shortfall of the Government will be filled by the top section certainly.
Morgan Stanley on Reliance Industries: The research firm has an overweight call on the stock with target at Rs 2,925 per share. The company’s new energy stack continues to fall in place as India progresses to decarbonisation target. Acquisition of a Sodium Technology player has multiple synergies with green plans. The company’s refinery is potentially adding value in developing carbon anode side of the battery. The stock was trading at Rs 2,388.30, up Rs 20.15, or 0.85 percent. It has touched an intraday high of Rs 2,391.75 and an intraday low of Rs 2,364.95.
Coal India share price jumps after rise in coal production in December: Coal India share price jumped over 4 percent after the company reported rise in December 2021 coal production. Coal India Limited on January 1, 2022 reported a 3.3 percent rise in coal production to 60.2 million tonne (MT) in December. The state-owned company had produced 58.3 MT of coal in the corresponding month of the previous fiscal, it said in a filing for exchanges on Saturday.
The firm’s coal output increased 5.3 percent to 413.6 MT during the April-December period from 392.8 MT in the corresponding period of the previous fiscal, it added. Coal offtake increased in December 2021 by 15.7 percent to 60.7 MT compared to 15.5 MT in December last year.
NCC gags five new orders worth Rs 1,898 crore in December 2021: NCC has received five new orders totaling to Rs 1,898 crore (exclusive of GST) in the month of December, 2021. Out of this, three orders of Rs 988 crore pertain to Building Division and balance two orders of Rs 910 crore pertain to Water Division. These orders are received from State Government agencies and do not include any internal orders, the company said in an exchange filing. The stock was trading at Rs 72.05, up Rs 1.75, or 2.49 percent. It has touched an intraday high of Rs 72.65 and an intraday low of Rs 70.30.
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HDFC Securities on S H Kelkar and Company: We believe the company would be a major beneficiary of increasing demand from FMCG companies specifically present in personal care, packaged foods & dairy products. Management guided for 12-13% CAGR in revenue over the next 3-4 years. Company said that gross margin would be sustainable at 42-43% area in the medium term. We expect 12.5% revenue CAGR over FY21-24E largely led by strong volume growth in the end user industry.
We believe margin should remain around 15-16.5% over the same period largely due to pressure in gross margin and higher expenses. We estimate ~9% PAT CAGR on the back of strong revenue and steady margin. Recently global giant Firmenich Aromatics took 10% stake in the company. This would help SHK in technological & R&D newer product development. Management said that the company will maintain distribution policy of 30-40% via dividend/buybacks as no major capex is planned in the medium term.
At CMP of Rs 155, the stock trades at 15.5x/12.4x of FY23E/FY24E EPS. We feel that investors’ can buy the stock at in the band of Rs 155-158 and add on dips at Rs 137 for base case target price of Rs 172.5 (14.5x Dec-2023E EPS) and bull case target price of Rs 184 (15.5x Dec2023E EPS) over the next two quarters.
Market update at 11 AM: Sensex is up 570.58 points or 0.98% at 58824.40, and the Nifty jumped 163.30 points or 0.94% at 17517.30. TCS, Bajaj Finserv and Coal India are the top gainers while Tata Motors, TCS and RBL Bank are the most active stocks.
Among the sectors, auto, financials, capital goods and realty added a percent each while the midcap and smallcap indices are also trading in the green.
Just in: India December manufacturing PMI at 55.5 against 57.6 (MoM).
Top 12 Trading Ideas For January Series As Market Keeps A Watch On Omicron
Sameet Chavan of Angel One says Traders should trade with a positive bias as long as the index remains above 17,000–16,800