Market opened on a flatter note at 14453.30 following the weak global cues. Global cues also indicated that this week would be sluggish and choppy as the global market movements showed small corrections with the opening all over the globe. The European Central Bank will meet on Thursday for the first time in 2021 as it tries to manage the impact of rising COVID-19 cases, a resurge in lockdowns across the continent and taking into account preliminary PMI data from Europe. The continent has taken a hit in January as the spread of the virus has trumped the vaccine rollout. The impact of this can be seen on the markets all over the world. All major indices have been trading negative, Tata motors and Tata steel being the biggest losers on NSE: Guarav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor
Commodity prices traded volatile during the week passed by with most of the commodities in non-agro segments witnessed selling. Crude oil prices managed to end in green while base metals traded weak on demand growth concerns. Bullion prices pared weekly gains in the second half of the week with rally in dollar index. The dollar index rose by 0.75% for the week in a rare move against widening deficit and higher stimulus.
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Adani Green Energy Ltd share price fell as much as 2.84 per cent to Rs 920.55 apiece on BSE today. Adani Green Energy shares have corrected nearly 25 per cent in less than two months, from the 52-week high of Rs 1220 apiece. Today, French oil and energy group Total announced the acquisition of a 20 per cent minority stake in Adani Green Energy Limited (AGEL) from Adani Group for a global investment of $2.5 billion. Moreover, the stake purchase in AGEL would give Total a seat on the Board of Directors of the company.
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HDFC Bank share price gained 2.3 per cent to hit a fresh 52-week high of Rs 1,500 apiece on BSE today. The bank reported an 18.1 per cent on-year growth in net profit at Rs 8,758 crore for the quarter ended December 31, 2021. The bank posted a net profit of Rs 7,416 crore in the same period last year. HDFC Bank’s net interest income for the third quarter grew 15.1 per cent to Rs 16,317 crore helped by growth in advances, which was at 15.6 per cent.
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French oil and energy group Total has agreed to buy a 20% minority stake in India’s Adani Green Energy Limited (AGEL) from Adani Group, as Total builds up its presence in the renewable energy sector. Total said on Monday that its purchase of the stake in AGEL would give Total a seat on the board of directors of AGEL. (Reuters)
The issue looks attractively priced. The NPAs stands to be nil and the company plays an imperative role in financing growth of Indian Railways. Owing to the huge issue size IRFC may not be a quick bite on listing but from longer-term prospects issue looks definitely acceptable to me.: Abhay Doshi, Founder, UnlistedArena.com – dealing in Pre-IPO & Unlisted Shares
The Rs 4,633-crore Indian Railway Finance Corporation (IRFC) initial public offer opened today for subscription, in the price band of Rs 25-26 apiece. The dedicated market borrowing arm of the Indian Railways has allocated 53.45 crore equity shares at Rs 26 per share on Friday to anchor investors. The grey market premium of IRFC has fallen to Rs 1.25-1.30 today from Rs 1.60 on Friday.
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A bit of biddishness is seen in the USDINR market possibly after Yellen’s comments about the weak dollar though not very clear. Imports should be hedged at least for Jan while exports can wait for 73.50 is the view. RBI buying provides natural relief for exports. A bit of selling is surely seen in stock markets after the ferocious rise. The advance-decline also favouring declines so time for some profit booking.: Anil Kumar Bhansali, Head- Treasury, Finrex Treasury Advisors
The major event this week is the ECB monetary policy on Thursday. President Biden’s inauguration ceremony is on the 20th. For the week we expect the RBI to trade a 72.90-73.60 range with upside bias. Today is a US holiday and therefore no cash transactions would be possible. For the day Rupee is likely to open around 73.19 and trade a 73.10-73.40 range with upside bias.: Abhishek Goenka, Founder and CEO, IFA Global
If the markets trade below 14370-14380 and manage to close below that too, we would be in a correction zone which could take the Nifty down to 14150 and then 14000. Extreme caution should be exercised and stops must be in place for all trades, long or short. Volatility needs to be strategically utilised. For the markets to move up, we need the index to close around the 14600 levels. Until that does not happen, the trend remains sideways with a bearish bias: Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
BSE Sensex was trading flat with a negative bias at 49,025, while the broader Nifty 50 index was testing 14,400 on Monday.
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Reliance Industries Ltd (RIL) shares top BSE Sensex gainer in pre-open. RIL shares were trading 1.57 per cent up at Rs 1,968 apiece.
BSE Sensex fell 140 points in the pre-opening session on Monday, following weak global cues.
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On Friday, foreign institutional investors (FIIs) lapped up shares worth Rs 971.06 crore, while domestic institutional investors (DIIs) offloaded shares worth Rs 942.07 crore on a net basis in the Indian equity market on January 15, as per provisional data available on the NSE.
A total of 21 companies including Mindtree, Indiabulls Real Estate, IndiaMART InterMESH, IRB Infrastructure Developers, Majesco, Rallis India, Alok Industries, Shakti Pumps, Snowman Logistics and Trident, among others are set to announce their October-December quarter earnings later in the day today.
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HDFC Bank on Saturday reported an 18% year-on-year (y-o-y) growth in net profit for the quarter ended December to Rs 8,578 crore on the back of a 15% y-o-y rise in net interest income (NII) to Rs 16,317.6 crore, with non-interest income growing 11.6% y-o-y. The bank’s non-bank subsidiary posted a loss during the quarter.
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The domestic equity market will be largely guided by the ongoing quarterly earnings as well as global cues in the coming week and indices may witness volatility in the run-up to the Budget, according to analysts. Besides, investors will keep tracking latest developments and trends on the COVID-19 pandemic front, especially the vaccine rollout in the country.
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Two companies — Indian Railway Finance Corporation and Sequoia Capital-backed Indigo Paints — are set to hit the market with their initial share-sale offers this week to raise an estimated over Rs 5,800 crore. The companies are expecting to benefit from an equity market, which is flush with liquidity and has seen a sharp increase in new retail investors.
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Corporate earnings should grow at 21% y-o-y with the earnings growing across all 13 sectors in Q3 vs. 6 in the previous quarter. Domestic company earnings growth of 12% will be at a 7-quarter high. Margins should flatten to decline q-o-q as cost normalisations are seen across several sectors and raw material prices have risen. Metals, cement, pharma and mid-cap earnings should rise 30%+ while consumer and IT will be in mid-single digits.
Jefferies
