Buzzing:
Shares of NMDC rose over 3 percent after brokerage firm JP Morgan India upgraded the stock to “overweight” as it believes domestic iron ore prices have bottomed out and will rise over the next six months. The brokerage is also of the view that the demerger of the steel plant of the company could also act as a catalyst for outperformance going ahead.
JP Morgan India’s upgrade comes after NMDC’s shares fell over 7 percent on the past three months as domestic iron ore prices slumped in-line with decline in global prices.
Rohit Poddar, Managing Director, Poddar Housing and Development:
In the year 2022, the real estate market’s deal street is projected to be strong even further. The various initiatives by the state & central government are keeping the residential asset class in favour. This has revived the residential sector leading to uptrend at many levels.
Despite the fact that the markets were trembling, the realty index held up well in the midweek trading. The realty index is likely to maintain its rising momentum even further.
Vodafone Idea shares gain: Shares of Vodafone Idea rebounded more than 7 percent to Rs. 12.65 on the National Stock Exchange today after nosediving 20 percent on Tuesday as the company clarified that the government will not take over the operations of the telecom operator.
Vodafone Idea on Tuesday had said it has exercised the option to convert interest payable for the four years of deferment on the deferred spectrum installments and its adjusted gross revenue dues into equity that will see the government hold a 35.8 percent stake in the company, post-dilution.
Bajaj Finance share price up as board to consider fundraising proposal: Bajaj Finance share price rose 2 percent intraday to Rs 7,869.90 on January 12 after the non-banking finance company said its board will consider a fundraising plan at its meeting next week.
A meeting of the board of directors of Bajaj Finance will be held on January 18, 2022, to consider the unaudited financial results for the quarter and nine months ended December 31, 2021.
At the said meeting, the board will also consider raising of funds by debt issue/issue of non-convertible debentures as a part of the proposed increase in the overall borrowing limit, pursuant to Section 180(1)(c) of the Companies Act, 2013, subject to approval of the shareholders.
Buzzing Stock: Varun Beverages Ltd stock surged 5.7% to Rs 918.50 after brokerage firm Jefferies India retained its high conviction buy on the stock. The brokerage firm has increased its target price to Rs 1215, up 45%.
“After missing the peak summer season due to Covid-19, we expect better trends in 2022 for Varun Beverages, the PepsiCo bottler. While Covid continues to disrupt, a likely stability by March would help VBL to see a strong season, along with share gains in south & west (acquired territory)”, Jefferies report said.
“Balance sheet would continue to deliver, return on equity is set to expand to c.24% by CY23 and we forecast c.40% CY21-23 EPS Cagr.”, the brokerage report added.
Market update at 11 AM: Sensex is up 490.16 points or 0.81% at 61107.05, and the Nifty jumped 137.40 points or 0.76% at 18193.20. Bajaj Finance, Reliance Industries and Bajaj Finserv are the top gainers while Tata Power, Avenue Supermarts and HDFC Bank are the most active stocks.
Buzzing:
Shares of Bharat Forge fell as much as 4 percent to Rs 753.80 on the National Stock Exchange today after CNBC-TV18 reported that brokerage firm CLSA India has downgraded the stock to ‘sell’ from ‘buy’ citing a likely slowdown in export growth.
The brokerage firm also cut its price target for the stock by 23.3 percent to Rs 690 as it believes that valuations are “overly high”.
The firm depends highly on components it exports to Class 8 truck manufacturers in the US for its revenues, even though the company is diversifying its product base. However, Class 8 truck orders in North America have been on a downward trajectory over the past few months owing to the global semiconductor shortage.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The markets have sustained well above the 18000 level. We should be looking forward to 18400-18500 as the next target.
Since the market has a good support at 17700, any intraday correction should be used to accumulate long positions on the Nifty.
BSE Power index rose 1 percent supported by the Adani Power, Adani Green, Tata Power
Buzzing:
Delta Corp’s share price rose over 5 percent in early trade on January 12 a day after the casinos and hotels operator reported strong numbers for the quarter ended December.
Delta Corp reported a consolidated profit of Rs 70.38 crore versus Rs 1.28 crore a year ago.
The company had posted a loss of Rs 22.57 crore in the September 2021 quarter.
Consolidated revenue from operations jumped to Rs 247.22 crore in the December 2021 quarter, more than doubling from Rs 120.82 crore in the year-ago period and jumping more than three-fold compared to Rs 74.72 crore in the September 2021 quarter.
Oil jumps nearly 4% as Omicron impact seen as short-lived
Oil soared nearly 4 percent on Tuesday, supported by tight supply and expectations that rising coronavirus cases and the spread of the Omicron variant will not derail a global demand recovery.
Brent crude gained $2.85, or 3.5 percent, to $83.72 a barrel, its highest settlement since early November. The global benchmark dropped 1 percent on Monday.
US West Texas Intermediate (WTI) rose $2.99, or 3.8 percent, to end at $81.22, also its highest price since mid-November. On Monday, it fell 0.8 percent.
Rupee Opens:
Indian rupee opened 13 paise higher at 73.78 per dollar on Wednesday against previous close of 73.91.
US dollar declined 0.39% yesterday amid a rise in risk appetite in global markets and decline in US treasury yields. Market sentiments improved as US Federal Reserve chairman Jerome Powell reiterated the central bank’s efforts to tame inflation and also said the bank has not made any decisions about shrinking its balance sheet, said ICICI Direct.
Rupee future maturing on January 27 appreciated by 0.18% on rise in risk appetite in domestic markets and FII inflows. However, further gain was prevented on elevated crude oil prices and investors remained cautious ahead of US Fed Chair Powell’s testimony, it added.
