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Nifty Metal index rose 1 percent led by the APL Apollo Tubes, Tata Steel, Coal India
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
The market is now completely under the control of bulls and is set to move higher. Having realised that even their relentless selling has not brought the markets down, as perhaps they expected, the FIIs are now on the backfoot. Seizing the opportunity, the exuberant retail investors assisted by the DIIs flush with funds are driving the markets up.
There is a positive and a negative dimension to this rally. The positive is that high quality large-caps are leading this rally. The negative is that many low-grade stocks which don’t justify any investment are going up. Newbie retail investors chasing low-grade stocks will lose money.
The results of IT majors reinforce the fact that the industry is in a multi-year expansion cycle. In Q3 Infy has done an Usain Bolt leaving others far behind.
Gainers and Losers on the BSE Sensex in the early trade:
Market Opens: Indian indices opened flat on January 13 amid mixed global cues.
At 09:16 IST, the Sensex was down 15.63 points or 0.03% at 61134.41, and the Nifty was down 7.30 points or 0.04% at 18205. About 1413 shares have advanced, 756 shares declined, and 112 shares are unchanged.
Power Grid, Infosys, TCS, Tata Steel and Sun Pharma were among major gainers on the Nifty, while losers were Wipro, M&M, Tech Mahindra, HCL Technologies and Kotak Mahindra Bank.
Mohit Nigam, Head – PMS, Hem Securities:
Benchmark Indices are expected to open on a positive note as suggested by trends on SGX Nifty. Both European and US markets closed in green. Asian markets are giving mixed cues.
The index of industrial production (IIP) which measures factory output witnessed a growth of 1.4% YoY during November which is mainly due to the strong performance which is seen in the mining sector followed by the electricity sector.
Investor sentiments are high and are expecting a good earnings season. Markets can witness some consolidation today after being in uptrend for quite some time. Any dip from current levels presents a good buying opportunity and investors should accumulate quality stocks.
On the technical front, the key resistance levels for Nifty50 are 18250 followed by 18290 and on the downside 18150 followed by 18090 can act as strong support. Key resistance and support levels for Bank Nifty are 39000 and 38400 respectively.
Market at pre-open: Benchmark indices are trading higher in the pre-opening session.
At 09:02 IST, the Sensex was up 289.80 points or 0.47% at 61439.84, and the Nifty was up 22.40 points or 0.12% at 18234.70.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 1,001.57 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 1,332.01 crore in the Indian equity market on January 12, as per provisional data available on the NSE.
Top 10 Things You Must Know Before The Market Opens Today
Trends on SGX Nifty indicate a positive opening for the index in India with an 119-point gain.
Prashanth Tapse, Vice President (Research) at Mehta Equities:
Infosys reported better than expected quarterly earnings beating all street expectations. The company hiked growth guidance for FY22 to 19.5%-20% from 16.5%-17.5% which was above our expectations.
Constant Currency growth also rose from 6.3% to 7% against 3.5% street expectation and net profit growth performed better than street expectations when compared to same quarter last year.
Large deals stood at $2.53 bn giving strong growth visibility. Based on the results, we expect stock would react positively up from closing of Rs 1876 and we are overall optimistic on the stock with medium to long term horizon with a technical target above Rs 2000 mark in 6-12 months period.
Morgan Stanley on Infosys
Morgan Stanley has kept overweight rating on the stock and raised the target price to Rs 2,250 from Rs 2,110.
It also raise EPS estimates by up to 3 percent as the revenue growth surprised the most amongst peers and the margin pressures incrementally appear to be easing.
Morgan Stanley feels that the stock should further close valuation gap with TCS, reported CNBC-TV18.
IIP growth slows down to nine-month low of 1.4% in November 2021
India’s industrial growth, based on the Index of Industrial Production, slowed down to 1.4 percent in November 2021 from 4.0 percent the previous month.
After several months of high growth thanks to a low base, IIP growth for November 2021 is the lowest in nine months, data released on January 12 by the National Statistical Office showed.