Sensex, Nifty Highlights on December 21: Equity indices fell 3% each on Monday and closed sharply lower, in line with globally weak equities amid rising coronavirus cases and concerns over fresh rounds of lockdown. Reversing trend from 6 days of consecutive gains, Sensex fell by 1,406 points to 45,553 and Nifty ended 432 points lower at 13,328. Global equities were bearish today as coronavirus infections increased in parts of North Asia, such as Japan and South Korea, and weighed on investor sentiment. European countries have banned flights from the UK as the British government began emergency lockdown on Sunday, over fear of new virus strain. Last Friday, Sensex ended 70 points higher at 46,960 and Nifty gained 19 points to 13,760. During the session, Sensex hit an all-time high of 47,026 and Nifty logged a lifetime high of 13,772.
Here's a look at the updates of the market action on BSE and NSE today
3. 55PM: Closing
Equity indices fell 3% each on Monday and closed sharply lower, in line with globally weak equities amid rising coronavirus cases and concerns over fresh rounds of lockdown. Reversing trend from 6 days of consecutive gains, Sensex fell by 1,406 points to 45,553 and Nifty ended 432 points lower at 13,328.
3.43PM: Nifty outlook
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments said,"The Index has broken its support of 13500 which indicates a stop out on all long positions. We would now need to wait and watch the markets over the next couple of sessions. One should not take hasty and risky trades by going long or short on the markets. For the upside to resume, we would need to start trading above 13750-13800. In order to break on the downside, we should wait for a day or two and re-evaluate the markets. The strategy for the current market would be to sit on the sideline without a trade."
3.34PM: Market outlook
S Ranganathan, Head of Research at LKP Securities said,"The new variant of the Novel Coronavirus in the UK spooked markets as we witnessed intense selling in pivotal throughout afternoon trade. While the street was bracing for a correction this week after a sharp up move, the sheer velocity of the fall across broader markets took the bulls by surprise as practically none of the key indices constituents were in the Green today"
3. 25 PM: Global markets
Global equities were bearish today as coronavirus infections increased in parts of North Asia, such as Japan and South Korea, and weighed on investor sentiment. European countries have banned flights from the UK as the British government began emergency lockdown on Sunday, over fear of new virus strain. The government of India has also decided that all flights originating from UK to India are to be suspended till 31st December 2020.
Considering the prevailing situation in UK. Govt. of India has decided that all flights originating from UK to India to be suspended till 31st December 2020 (23.59 hours).- MoCA_GoI (@MoCA_GoI) December 21, 2020
US, stocks ended lower on Friday, pulled down by uncertainty around a coronavirus stimulus deal.
3. 15 PM: Market at day's low
Equity indices fell sharply over 2.5% each on Monday amid globally weak equities amid rising coronavirus cases. Sensex traded 2,037 points lower at 44,923, its day's low and Nifty fell by 628 points to 13,131.
3.07 PM: Tata Motors share falls over 3%
Tata Motors share price fell over 3% today amid reports that a new mutant strain of coronavirus is 'out of control' in the UK. British Prime Minister Boris Johnson has imposed a new, higher level of coronavirus restrictions on London and much of southeast England. This would adversely affect the sales of Jaguar Land Rover (JLR), UK-based subsidiary of Tata Motors.
Tata Motors share opened with a loss of 2.22% at Rs 176.50 against previous close of Rs 180.50 on BSE. The share further fell to Rs 174.5, down 3.32% intra day.
2.51 PM: Top losers and gainers
M&M, ICICI Bank, PowerGrid, Axis Bank, SBI, ONGC and IndusInd Bank were among the top laggards in the Sensex pack. On the other hand, L&T, Reliance Industries, Sun Pharma, Infosys and HCL Tech were among the gainers.
2.41 PM: Brent crude outlook
Brent crude futures, the global oil benchmark, fell 3.02 per cent to USD 50.68 per barrel. Oil price gained on Friday as investors focused on covid vaccine release but is trading deep in red today as countries including U.K. plan emergency lockdown.
2. 31PM: Rupee slips 17 paise to 73.73
The Indian rupee, the domestic currency declined 17 paise to 73.73 per dollar on Monday's opening trade amid weak domestic equities and strengthening American currency in the overseas market. However, continued foreign fund inflows and lower crude prices supported the rupee and restricted the fall.
The local unit opened sharply lower at 73.74 against the greenback at the interbank forex market and was trading 17 paise down at 73.73 in early deals. The Indian rupee, the local currency declined 17 paise to 73.73 per dollar on Monday's opening trade amid weak domestic equities and strengthening American currency in the overseas market. However, continued foreign fund inflows and lower crude prices supported the rupee and restricted the fall.
The local unit opened sharply lower at 73.74 against the greenback at the interbank forex market and wwas trading 17 paise down at 73.73 in early deals.
2. 21 PM: Lockdown in European countries
Fearing a spike in the number of cases, the UK government has imposed a strict lockdown in London and South-East England as a new and more infectious strain of coronavirus has been found in parts of Europe including the UK, The Netherlands, Denmark and Austria. The British government stated the new mutated form of the virus is 70 per cent more transmissible and "out of control".
2.11PM: Antony Waste Handling Cell IPO in progress
Antony Waste Handling Cell has launched its initial public offer (IPO) today. The firm plans to raise Rs 300 crore through the IPO. It has already raised Rs 90 crore from anchor investors ahead of its initial share sale. The company allotted 2,857,003 equity shares at Rs 315 apiece to 10 anchor investors to raise Rs 89.99 crore, The share sale will close on December 23.
1.59 PM: Adimans Technologies outlook
Yash Gupta Equity Research Associate, Angel Broking said," After the announcement of OFS from promoter group Adimans Technologies LLP, of 4.4% of paid up equity share capital of the company and promoter has an option to sell additional 4.4% of paid up equity share capital in case of over subscription. Stock was down by more than 10% and is currently trading at the same price as the floor price set by the promoter group. As of now Dishman Carbogen Amcis Ltd has received a very muted response for the OFS. Dishman reported weak results in Q2FY21 with revenue from operation down by 6% and profit after tax down by 82% on back of slides in EBITDA margin from 31.2% to 18.2% in Q2FY21. Revenue got affected due to Indian CRAMs not able to resume its operations along with marketable segment molecules segment decline by 30%. We expect CRAMs business can take more time to normalize as Bavla manufacturing facility continues in EDQM audit observation. We remain cautious on the near term business prospects of the company. Given the recent run up in the stock price in the last 1 year we have a Neutral recommendation on the issue. As of now stock is trading at the same levels of floor price so there will be no listing gain for short term traders. "
1. 45PM: Antony Waste Handling Cell IPO
Geojit Financial Services said," The long-term nature of projects (ranging from 5-25 years) gives visibility for consistent revenue generation in future. However, dependency on municipal orders can impact its working capital cycle. AWHCL enjoyed EBITDA margin/PAT margin of 25% and 14% respectively in H1FY21. At the upper price band of Rs.315, AWHCL is available at P/E of 15x on FY21E EPS. Valuation looks attractive, considering healthy margins, improving revenue generation and increasing relevance of waste management. Hence, we recommend SUBSCRIBE to the issue with a long-term perspective".
1. 34PM: Global markets
Asian markets are trading lower ahead of the release of China's lending rate. Corona virus situation in Northern Asia continues to remain severe which could affect investor sentiments. US markets closed lower on Friday as talks continued on stimulus. Over the weekend, news that a deal has been struck on ~$900 billion stimulus package but Index future remains sideways. European markets closed lower on Friday as talks on post Brexit trade deal continued with no clear agreement. London begins emergency lockdown on fear of new virus strain.
1. 26 PM: Antony Waste Handling Cell IPO opens today
Antony Waste Handling Cell has launched its initial public offer (IPO) today. The firm, which is India's second-largest municipal solid waste management (MSW) company, plans to raise Rs 300 crore through the IPO. The share sale will close on December 23. Analysts have a subscribe call on the issue but with cautious approach.
1. 15PM: Gold outlook
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said," Last week, Spot Gold prices gained about 2.3 percent as rising bets on additional stimulus infusion by central banks around the globe boosted appeal for Gold. Markets have a keen watch on the outcome of the U.S Federal Reserve's two-day policy meeting for cues on their stimulus plans going ahead. Inflations risk and a low interest rate environment has elevated the demand for Gold in 2020 as it is considered as a hedge. The yellow metal extended profits as depreciating U.S. currency made the Dollar denominated Gold cheaper for other currency holders. However, speedy distribution of the vaccine in many nations raised hopes of improvement in the global economic outlook which limited the gains for the safe haven, Gold.
Despite the vaccine euphoria, alarming increase in the covid19 cases around the globe and hopes over additional stimulus by US might levy some support for Gold. On the MCX, gold prices are expected to trade higher in today's session. As for today traders can go for BUY in gold at Rs 50500 levels with the stop loss of Rs 50300 levels for the target of 51000 levels. They can also go for BUY in Silver at Rs 69500 levels, with the stop loss of 68800 levels and for the target of 70500 levels. We expect gold may test $1920 levels and silver may test $28 levels soon."
1.03 PM: Market outlook
Ajit Mishra, VP - Research, Religare Broking said,"We're seeing buying interest emerging on every dip despite overbought conditions and it is mainly due to rotational participation from index majors across the sectors. However, the movement in the benchmark lacks decisiveness so we reiterate our positive yet cautious approach on markets and suggest continuing with a stock-specific trading approach. On the index front, Nifty has an immediate hurdle around 13,850-13,900 zone while 13,600 would act as critical support in case of any profit-taking. Among the sectoral indices, we suggest preferring stocks from the defensive pack viz. pharma, FMCG and IT counters as they tend to do well during the corrective phase."
12. 53 PM: AstraZeneca Pharma stock update
Yash Gupta Equity Research Associate, Angel Broking said," AstraZeneca Pharma stock up by 1.3% on receiving Import and Market Permission for asthma drug in India. AstraZeneca Pharma India Limited receives Import and Market Permission in Form CT-20 (Marketing Authorization) from the Drugs Controller General of India for Benralizumab 30mg/mL solution for injection (Fasenra). Benralizumab (Fasenra) is indicated as an add-on maintenance treatment for severe asthma with an eosinophilic phenotype in adult patients. The receipt of this permission paves way for the launch of Benralizumab (Fasenra) in India, subject to the receipt of related statutory approvals and licenses. This is very positive development for the AstraZeneca and this drug launch will help company to increase contribution from Domestic business."
12. 40 PM: Market outlook
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking): said,"Just like the recent past, once again we witnessed upmove in the indices from intraday dip and Nifty managed to end the week at its all time high. However, the banking index has been reluctant to participate during this week and thus has shown some relative underperformance. Although there are no signs of reversal yet on the chart, Nifty is currently trading near an important resistance of 13770 which is the 127% retracement of the previous correction on the weekly charts. Since the momentum readings are in overbought zone and the index is trading near its resistance, there could be some time-wise or a price-wise correction in the near term. As far as levels are concerned, 13650 and 13600 are the important supports whereas 13770-13800 is the important resistance zone. Traders are advised to look to book some profits on their existing longs here and trade with a stock specific approach with a tab on the above mentioned levels."
12. 30 PM: Antony Waste Handling Cell IPO
Keshav Lahoti-Associate Equity Analyst, Angel Broking said,"For Antony Waste Handling Cell to grow its business it needs to win new contracts from municipalities. The top 5 clients contributed 81.8% of the revenue of the fiscal year 2020. So in the future if a company is not able to win an existing major contract again, it will impact the financials adversely. Further, the business involves receivables risk from municipalities, which restricts the future growth opportunities. Financial conditions may be adversely affected if new municipal solid waste projects are not awarded to the company. So considering the valuation of P/E of 11.5x on FY20 basis (at the upper price band), we recommend NEUTRAL rating on the issue."
12.12 PM: Nifty Outlook
Geojit Financial Services said," Potential for a collapse is low, as significant consolidation has occurred near 13700 as well as 13600. Resigning into lacklustre trading ranges, is the next possible outcome for the fortnight, but we favour continuation of uptrend towards 13920 or more, without unsettling 13700. A retest of 13600, meanwhile, could set up stage for major directional moves."
11. 5 1AM: Nifty outlook
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments said,"The Nifty is keeping above the crucial 13700 levels. If we can continue doing that, the markets should be headed to 14000. A strong support lies at the 13500-13600 levels and as long as that holds, the trend of the index remains bullish and traders can utilise any dip to accumulate long positions."
11. 43 AM: KNR Construction stock update
Mr. Yash Gupta Equity Research Associate, Angel Broking said," Company has announced that the board of Directors of the company has approved the issue of bonus share in ratio of 1:1. This issue of bonus hare is subject to members approval by the way of postal ballot. Company is issuing bonus shares to the shareholder for capitalizing its security premium. Each shareholder will get 1 bonus equity share of face value 2 each fully paid-up for every 1 share held by the shareholder as on record date to be fixed thereafter for this purpose. The Company will also seek the approval of members of the Company through postal ballot inter alia for increase of authorized share capital of the Company.
11.33 AM:Gold outlook
CapitalVia Global Research Ltd-Investment Advisor said in its note," Initially, the gold markets dropped throughout week, but then turned around to rebound very nicely to break above the top of the previous week's shooting star. This means that gold is maybe trying to turn things around and take off again. It will deliver a certain amount of psychological and systemic resistance, but we think we're breaking up there and ultimately going to challenge a bit higher level. It doesn't mean that we automatically get there.
Traders should strongly Buy the commodity as when it comes near level of 1874.00 it might come 1910 levels To anticipate the risks individuals should also set a stop loss at a level of $1860. Major support in COMEX Gold on daily chart are: $1850 - $1820.Major resistance in COMEX Gold on daily chart are: $1886 - $1910."
11.29 AM: Accenture outlook
Jyoti Roy - DVP- Equity Strategist, Angel Broking said,"Accenture reported better than expected Q1FY21 results with revenues increasing by 4.0% YoY to USD 11.8bn as against a guidance of flat to degrowth of -3.0%. Growth was driven by the outsourcing segment which grew by 8.0% YoY in constant currency terms. During the quarter the Accenture reported new bookings of USD 13bn up by 25.0% YoY while outsourcing bookings were up by 46% YoY to USD 6.3bn. Accenture has also upgraded their full year revenue growth guidance for FY21 to 4-6% as compared to earlier guidance of 3-5% revenue growth. Strong Q1 performance by Accenture's outsourcing division bodes well for Indian IT companies. Post the Accenture Q1 numbers we maintain our positive stance on Indian IT sector. HCL Tech remains our top pick in the large cap IT space while Persistent System is our top pick in the mid & small cap IT space.
11. 18 AM: Market outlook
Vinod Nair, Head of Research at Geojit Financial Services said,"During the week, the domestic indices have been following the global peers on expectations of US stimulus measures and developments in Brexit talks. The market was inching to fresh highs, each day, supported by improvement in Indian industrial data and US Federal Open Market Committee's reaffirmation to continue its support through stimulus measures until the economy reaches maximum employment and the inflation target. Fed's decision to keep rates unchanged will help FII's to maintain a positive view on emerging markets like India. Although small and mid-cap stocks had outperformed the benchmark indices, a reverse trend was witnessed by the end of the week.
In the coming week, the market will be maintaining its focus on global events, as a decision on the US stimulus package and Brexit deal can be expected in the coming days. RBI will be releasing deposit and borrowing data of Indian banking system for the month of November. Growth in business figures is expected and it will have a significant say in the forming of banking sector outlook, for the coming quarters"
11.07 AM: Mindspace Business Parks REIT outlook
Yash Gupta Equity Research Associate, Angel Broking said," Mindspace Business Parks REIT issued debenture worth 200Cr. Mindspace Business Parks REIT India's second listed REIT has issued non-convertible debenture worth 200Cr in one or more tranches. Board has approved allotment of 2000 Non Convertible Debentures of Face value of 1000000 each by Mindspace REIT, for an aggregate principal amount of Rs 200Cr on a private placement basis. The Non-Convertible Debentures are assigned a final rating of CRISIL AAA/Stable. The Non-Convertible Debentures are proposed to be listed on the Wholesale Debt Market (WDM) Segment of the BSE Limited. Tenure will be of 36 months and shall carry a coupon at the rate of 6.45% per annum. This raising of capital will help Mindspace for its short term capital at a very attractive cost of 6.45%."
10. 55 AM:Dishman stock outlook
Yash Gupta Equity Research Associate, Angel Broking said,"Dishman stock: OFD from Adimans Technologies LLP. OFS is of 4.4% of paid up equity share capital of the company and promoter has an additional option to sell 4.4% of paid up equity share capital in case of over subscription. Promoter Adimans Technologies LLP currently holds 9.9 Cr share i.e 63.2% of paid up equity share capital, after the OFS promoter holding will come down to 58.8%. The OFS will open on 18th December, 2020 for non-retail investors and 21st December, 2020 for retail investors. 15% of OFS has been reserved for retail investors."
10. 36AM: Nifty technical outlook
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said,"A new and faster-transmitting strain of the virus in the UK is an area of concern. This has led to further restrictions on travel and economic activity. Acceleration in the number of cases in the US and poor economic data are other dampeners. However, the US Congress agreement on $ 900 billion of fiscal stimulus is likely to support markets. High valuation continues to be a concern in India. But the power of FII-driven liquidity is overwhelming all negative news. Investors should exercise caution"
10. 24 AM: Zomato prepares to go public by H1 FY21
Indian food delivery startup Zomato closed a $660 million primary financing round, valuing it at $3.9 billion, its founder and CEO Deepinder Goyal said on December 18. The Gurugram-based startup, which is preparing to go public in the first half of 2021, said ten new investors, including Tiger Global, Kora, Luxor, Fidelity (FMR), D1 Capital, Baillie Gifford, Mirae, and Steadview participated in the financing round that it kicked off last year.
10. 17 AM: FIIs infuse Rs 79,854 crore in Nov-Dec
Foreign institutional investors (FIIs) have infused a record Rs 79,854 crore in the last two months of 2020. With eight trading sessions left in 2020, the investment is likely to cross Rs 1 lakh crore during the period. That would bring the fund infusion at par with 2019 when they poured in Rs 1 lakh crore into Indian equities. That was second highest infusion by FIIs ever compared to an all-time high of Rs 1.13 lakh crore in 2013.
10. 01AM: TCS share buyback in progress, should you sell shares?
India's largest IT services firm Tata Consultancy Services (TCS) has initiated buyback of shares on December 18. The Rs 16,000-crore share buyback programme will close on January 1, 2021.
Last month, TCS shareholders had approved a proposal to buy back up to 5,33,33,333 equity shares of the company at Rs 3,000 per scrip for an aggregate amount not exceeding Rs 16,000 crore.
Buyback price of Rs 3,000 was at a 5.71% premium to the closing price of Rs 2,837.90 on December 17 (Thursday).
9. 49 AM: Mrs Bectors Food's grey market premium falls to 67%
The grey market premium for Mrs Bectors Food initial public offer (IPO) has fallen to 67% after the end of three-day share sale. The premium, which stood at 76% (Rs 220) on the first day (December 15) now stands at Rs 190-195 per share. Bectors Food share is likely to be listed at Rs 483 instead of the earlier Rs 508 on December 29.
9. 37 AM: Market outlook
S Ranganathan, Head of Research at LKP Securities said,"While the week gone by quite clearly belonged to the Real Estate stocks, we expect the Pharma & the IT sector to continue their upward journey during the coming week. Given the upcoming Budget preparations and thrust on Reforms, the importance of good Healthcare Infrastructure has become a priority. Import Duties to curb dumping coupled with the PLI scheme should in our view help Corporate India and the coming week ahead of Christmas promises to be an interesting week ahead."
9. 27 AM: Stocks to watch today on December 21
RIL, JSW Steel, M&M, Infosys, PVR, PNB, ONGC, Lupin among others are the top stocks to watch out for in Monday's trading session
9. 18 AM: Opening session
Market indices opened on a bearish note on Monday after six sessions of consecutive gain last week, amid weak global equities. SGX Nifty on the Singapore Exchange was falling by 50 points, indicating weak trend in domestic grounds today. Global equities were bearish today as coronavirus infections increased in parts of North Asia, such as Japan and South Korea, and weighed on investor sentiment. After six sessions of consecutive gain last week, Sensex was trading 188 points lower at 46,771 and Nifty fell by 68 points to 13,692.
9. 05 AM: Rupee outlook
Commenting on Rupee's outlook, Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking said," Value erosion in dollar, excessive liquidity is driving foreign investors to bet big on Indian equities, which give the rupee a slight appreciating bias in the near term. However, 73.20-73.00 remains a strong hurdle for the rupee, and with RBI standing in the way, bouts of large-scale appreciation can be ruled out. We reckon that the RBI will prefer to keep the rupee exchange rate stable between the 73 to 74.50 band for quite some time now."
8. 50 AM: FII action
Foreign portfolio investors (FPIs) bought shares worth Rs 2,720.95 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,424.61 crore in the Indian equity market on 18 December 2020, provisional data showed.
8. 40 AM: Rupee closing
On the currency front, the Indian rupee, the local currency settled 3 paise higher at 73.56 per US dollar on Friday's opening trade as the weakness of the American currency and optimism surrounding the US stimulus aid package supported the domestic unit. Sustained foreign fund inflows also strengthened investor sentiment.
8. 30 AM: Closing on Friday
Sensex ended 70 points higher at 46,960 and Nifty gained 19 points to 13,760. During the session, Sensex hit an all-time high of 47,026 and Nifty logged a lifetime high of 13,772.