Indigo Paints initial public offering (IPO) will open for subscription next week, paving the way for its much-awaited debut on Dalal Street. Sequoia Capital-backed Indigo Paints IPO, which received a go-ahead from Securities and Exchange Board of India (SEBI) earlier this month, will open for subscription on January 20 and close on January 22. The paints manufacturer is looking to raise Rs 1,000 crore from the capital markets with a combination of fresh issuance and an offer for sale (OFS) by existing shareholders of the company. This will be among the first few IPOs of 2021. In the previous year 2020, as many as 15 companies made stock market debuts.
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“We have achieved the 14600 levels. The key resistance patch is now between 14650-14750. It needs to be seen how markets react here. Is it going to resist or fly out of those levels like all other resistance levels have been treated over the past couple of months? If we can get past the 14750 levels on a closing basis, we should be headed towards 15000. The current support range for the Nifty is 14200-14250,” said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
“The decline in CPI inflation to 4.59% is a big positive for markets. But the steady rise in crude is an area of concern. Looks like Sensex is headed for 50000. But there are bumps ahead. The market is likely to turn highly volatile during the budget. Since valuations are high and investors are sitting on good profits, partial profit booking can be considered at every rise. It is impossible to time the market,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Sensex surged to begin the day’s trade at fresh all-time highs of 49,776. Nifty crossed 14,600 for the first time in history. Bharti Airtel stocks jumped 5.5%.
Indian markets are likely to see a gap up opening on the back of additional fiscal stimulus in the US and optimism over the earnings season despite mixed global cues.
~ ICICI Securities
Sensex closed pre-open session above 49,700 while Nifty was above 14,600.
Sensex breached 49,800 during the pre-open session on Wednesday while Nifty 50 crossed 14,700.
Infosys, Wipro: A total of 10 BSE listed companies such as Infosys, Wipro,5paisa Capital, Amtek Auto, Asian Tea & Exports, CESC, Capital Trade Links, GTPL Hathway, Mideast (India) and Rajoo Engineers are set to announce their October-December quarter earnings later in the day today.
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Nifty futures were trading 28.50 points or 0.20 per cent up at 14,629 on Singaporean Exchange, indicating a gap-up start for BSE Sensex and Nifty 50 on Wednesday. On the back of bullish sentiment, the market capitalisation of all BSE-listed companies soared to a fresh all-time high of Rs 197.46 lakh crore on Tuesday.
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‘In F&O space, we saw addition of fresh long positions in both the indices. We observed meaningful writing in 14500 and 14600 put options. Whereas, build-up was scattered between 14600-15000 strikes of call options. There are few derivatives data that hints market is now overbought. Firstly, the PCR-OI which is on the higher side at 1.75 and the stronger hands ‘Long Short Ratio’ around 80%, this certainly doesn’t give the comfort of holding longs now especially in case of index. Considering the above data points, we expect some profit booking any time soon and hence, it would be advisable to keep booking profits from hereon,” said Sneha Seth, Derivatives Analyst, Angel Broking.
Maximum Call Open Interest (OI) for the January series is placed at 15000 strike with 20.84 lakh contracts. This is followed by 16.34 lakh contracts at 14000 strike.
Put OI is the most at 14000 strike with 29.90 lakh contracts, followed by 22.35 lakh contracts at 13,500 strike.
While Sensex gained a whopping 28% and Nifty 50 zoomed 29%, the big bull of domestic stocks markets was seen increasing his stake in some firms, while booking profits somewhere, and adding fresh investments to his portfolio.
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“Crude oil rallied to pre-pandemic levels. Brent traded as high as US$56.75 after bouncing on a larger crude draw than expected. A weaker US dollar helped and complimented numerous price revisions by several analysts for still higher 2021 estimates on the tailwind from the surprise 1mb/d cut announced by Saudi Arabia,” said Stephen Innes, Chief Global Market Strategist at Axi.
The market capitalisation of all BSE-listed companies jumped to a fresh all-time high of Rs 197.46 lakh crore on Tuesday, driven by bullish market sentiment. At close of trade, the market capitalisation of BSE-listed companies stood at Rs 1,97,46,939.57 crore (USD 2.6 trillion).
NSDL has increased Bharti Airtel’s FPI limit to 100% saying that the company sent a communication to the depositary on January 12, 2021, stating that it has received the regulatory approval for 100% FDI. The move is likely to rope in foreign fund buying of Bharti Airtel.
Arpu to improve as company gains high-value subs, migrates subs from 2G to 4G and potential tariff hikes in FY22e. Spectrum supply is abundant in the upcoming auction; we expect Bharti to invest Rs98 billion and industry to skip 700MHz. Reiterate ‘buy’ and raise target price by 14% to Rs650 (from Rs570). Key catalyst would be rise in mobile Arpu.
