Sensex, Nifty Highlights on December 8: Market indices Sensex and Nifty ended the session at record highs on Tuesday, backed by positive global cues, progress in Covid 19 vaccine, strong FIIs inflows and signs of economic recovery. Sensex ended 181 points higher at 45,608, Nifty closed 37 points higher at 13,392. Intra day, both indices touched all time highs today, with Sensex hitting, 45,742 and Nifty touching, 13,435. With today's rally, Sensex has gained 10.27% since the beginning of this year and Nifty has risen 9.86% during the same period. Interestingly, Sensex and Nifty have gained 8.22% and 8.96%, respectively in one month. Yesterday, both the indices attained record closing high levels.
Here's a look at the updates of the market action on BSE and NSE today
3. 59 PM: Closing
Market indices Sensex and Nifty scaled record highs for the fourth consecutive session and closed higher on Tuesday, backed by positive global cues, progress in Covid 19 vaccine, strong FIIs inflows and signs of economic recovery. Sensex gained 181 points higher at 45,608, Nifty rose 37 points to 13,392. Intra day, both indices touched all time highs today, with Sensex hitting, 45,742 and Nifty touching, 13,435.
3.46 PM: Market outlook
S Ranganathan, Head of Research at LKP Securities said,"Indices stayed buoyant despite volatility as IT majors did well along with support from key heavyweights. The highlight of the day was PSU banks as the space witnessed tremendous interest from investors"
3.37 PM: JK Lakshmi outlook
Angel Broking said in its note," JK Lakshmi is a predominantly north India cement company with capacity of 13.3 Mn Mt. Currently, north India is favorable location for the cement industry as it is consolidated to a large extent as well as demand and supply outlook is better compared to other locations. Q1FY21 numbers of the Company were better compared to its peers due to favorable regional presence. It is also trading at a significant discount compared to other north based cement company such as JK Cement as well as historical valuation."
3. 23 PM: Persistent Systems outlook
Angel Broking said in its note," Company has won a large deal during the quarter which will ramp up over the next few quarters. We expect the company to post revenue/EBITDA/PAT growth of 11.6%/21.4%/19.7% between FY20-FY22 given negligible impact of Covid-19 on FY21 numbers strong deal wins, ramp up of existing projects along with margins expansion. "
3. 19 PM: IDFC First Bank
Angel Broking said in its note," We believe efforts to built liability franchise, fresh capital infusion and provision taken on wholesale book will help to tide over this difficult time. The IDFC First Bank is trading ( 0.7 x FY22ABV) at a significant discount to historical average valuations."
3. 13PM: Atul outlook
Angel Broking said in its note," Atul Ltd is one of India's oldest and largest specialty chemical companies with diversified presence across various industries like Agrochemicals, Pharmaceuticals, dyes & pigments etc. The company has got one of the strongest chemistry skillets in the Indian chemical space and has got a very strong relationship with global chemical companies with exports accounting for 55-60% of the company's revenues. The company's business has almost normalized in Q2FY2021 with the company posting 4.2% degrowth in revenues to Rs. `1,002 crore as compared to our expectation of a 10% degrowth. The life science division which accounts for ~35% of the company's revenue has reported a 5.3% YoY growth in sales to 347.5 crore for the quarter. We expect the company to post Revenue/EBIDTA/PAT growth of 10.3%/14.8%/11.8% between FY2020-2022 led by growth in the life science division. "
3.01 PM: Galaxy Surfactants outlook
Angel Broking said in its note," Galaxy Surfactants is a market leader in oleochemical-based surfactants, which is used in personal and home care products including skin care, oral care, hair care, cosmetics, toiletries and detergent products. The company has been increasing its share of high margin specialty care products in its portfolio which now accounts for 40% of its revenues while the balance is accounted for by the performance surfactant business. The company has a very strong relationship with MNC clients like Unilever, P&G, Henkel, Colgate-Palmolive and supplies raw materials to them not only in India but also in US, EU and MENA region. Though the companys operations had been impacted due to the Covid-19 outbreak in Q1FY21 we expect revenues to bounce back strongly in Q2FY21 given the companys exposure to the personal and home care segment and recovery in the specialty segment. We recommend a buy on the stock with a target price of Rs. 1997.
2. 49 PM: Jet Airways stock hits 5% upper circuit
Jet Airways share hit upper circuit of 5% today after new promoters of the defunct airline said the airline is likely to make a comeback during next summer. Share of Jet Airways opened 5% higher at Rs 75.60 against previous close of Rs 72 on BSE.
The share was stuck in upper circuit of 5% in afternoon trade. Jet Airways share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock has gained 8.62% in the last 2 days. The microcap share has gained 268% in one year and risen 155% since the beginning of this year. Market cap of the airline rose to Rs 858 crore on BSE.
2. 39 PM: Gujarat gas outlook
On Gujarat gas, Angel Broking recommended Accumulate rating at TP of Rs 344, and added,"In Q2FY21 Volume stood at 9.85 MMSCMD, which is the highest volume by company in any quarter, Volumes are even better than pre Covid levels. In last 2 years strong volume CAGR of 20%. Industrial Growth in Gujarat - 80% of overall volumes comes from the Industrial sector. Industrial demand is very strong in Morbi. Morbi ceramic to get further boost as strong demand from USA as they have imposed 200%-300% of import duty on Chinese ceramic. Company also ramping up its capacity at Morbi to enable it to handle 8 MMSCMD against current capacity of 5.9 MMSCMD. Margin to sustain - Gujarat gas margins are highest in Q2FY21 at 29%. Margin has increased due to low imported LNG prices and decrease in other expenses."
2. 20 PM: Bhandan Bank outlook
On Bhandan Bank, Angel Broking recommended Accumulate rating at TP of Rs 450, and added," Bandhan bank is one of India's leading east based micro finance lending led bank. This places the bank at a significant advantage over other MFIs in the form of very low cost of funds. While Bandhan Bank started off as a MFI it is diversifying its loan book. With the takeover of Gruh Finance mortgages account for ~ 26% of the banks lending books while commercial banking accounts for ~6.5% of the company's loan book. The company is looking to diversify its loan book and geographical spread over the next 5 years. The company has posted better than expected set of numbers for Q2FY21 with and has posted NII growth of 25.8% YoY while operating profit has registered a growth of 24.5% YoY. Collection efficiency has also improved to 91%/98%/98% for MFI/Housing and CIB segments in Oct'20. Management has highlighted that disbursements are going to be back to pre Covid levels in Q3FY21.
2.03 PM: Burger King IPO allotment status
Allotment of shares will be done tomorrow, on December 9, as per the red herring prospectus. Shares are proposed to be listed on BSE and NSE, likely on December 14. Those who had bid for the issue can check the subscription status on the online portal of Alankit Assignments, the registrar to the issue.
1. 49 PM: YES Bank share hits upper circuit of 10%
Share of YES Bank hit 10% upper circuit in early trade on Friday and gained for the second consecutive session, following news that the stock will be upgraded to large cap category from mid cap by mutual fund industry body The Association of Mutual Funds in India (Amfi).
With only buyers to bid and no sellers, YES Bank share price opened at day's low of Rs 15.98 and later rose to Rs 17.33, rising 9.96% against the last close of Rs 15.76. Outperforming the Nifty Bank, the stock has given 11.81% returns in the last 2 days of consecutive gains.
Yes Bank including four other firms- Adani Enterprises, PI Industries, Hindustan Aeronautics and Jubilant Food-Works - have a high probability of being included in the largecap category from the midcap category as part of the half-yearly market-cap categorisation by mutual fund industry body AMFI. As per a report by ICICI Securities (I-Sec), there is a high probability of the first four and a low probability for Jubilant FoodWorks to get upgraded to large cap stock.
1. 34 PM: Burger King IPO
The Rs 810-crore initial public offering (IPO) of Burger King India received an overwhelming response from the retail investors and got over subscribed within few hours of openeing on the very first day of share sale. Burger King's issue recieved the second highest subscription in 2020. The IPO that received strong 156.6 times subscription, opened for subscription on Wednesday, December 2, 2020 and ended on Friday, December 4, 2020,
As per the data available on stock exchange, the IPO on its third day received bids for 1,166 crore equity shares (156.65 times) against IPO size of 7.45 crore equity shares. It received subscription 9.38 times the issue size on the second day of bidding.
Despite a volatile market, the share sale received bids for 23.32 crore equity shares (3.13 times) against IPO size of 7.45 crore equity shares and got subscribed 3.13 times on December 2, the first day of subscription. The IPO of the quick service restaurant chain, became one among the six IPOs that were fully subscribed on Day 1.
Retail investors lapped up the IPO with their reserved portion subscribed 15.54 times on Day 1. Meanwhile, Happiest Minds received 14.6 times and Chemcon Speciality Chemicals received 9.8 times.
1. 18 PM: Nifty technical outlook
On markets opening --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The market is moving from strength to greater strength. One must be cautiously long in this market as we are in a passage of resistance. This range is between 13400-13700 so while the odds are that we will get past these selling pressure zones, traders should consider booking profits at regular intervals while continuing to remain on the long side."
1.01PM: Canara Bank shares rise over 7%
Canara Bank share rose over 7% today after the private sector lender set a floor price of Rs 103.50 per share for its qualified institutional placement (QIP). The bank plans to raise up to Rs 2,000 crore through the share sale.
The stock has gained 17.46% in the last 4 days. The share touched an intraday high of Rs 126.4, rising 7.53% against previous close of Rs 117.55 on BSE.
Canara Bank share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. However, the share has lost 39.7% in one year and fallen 43.27% since the beginning of this year.
12. 5 2PM: Rupee rises 10 paise to 73.80 per dollar
Indian rupee, the domestic currency appreciated by 10 paise to 73.80 per US dollar on Tuesday's opening session as sustained foreign fund inflows and strong domestic equities boosted investor sentiment.
The domestic unit opened at 73.83 against the US dollar at the interbank forex market and gained by 10 paise to touch a high of 73.80 over its previous close.
12. 39 PM: Sensex hits all-time high of 45,728
Sensex and Nifty scaled their fresh all-time highs in early trade today supported by positive sentiments arising out of hopes for a COVID -19 vaccine. While Sensex gained 298 points to a fresh high of 45,728, Nifty rose 80 points to 13,435.
With today's rally, Sensex has gained 10.27% since the beginning of this year and Nifty has risen 9.86% during the same period.
Interestingly, Sensex and Nifty have gained 8.22% and 8.96%, respectively in one month.
12. 25 PM: Cement stock outlook
Keshav Lahoti-Associate Equity Analyst, Angel Broking said," Cement stocks are making fresh highs due to improving demand scenario and increase in realisation. Although, demand is not yet back to pre covid level. Due to reduction in cost especially power & fuel, cement companies margins have improved. There is pick up in non-trade segment cement demand, as labourers issue is getting resolved as labourers are coming back to work after the festive season. Due to the improving demand scenario, companies are planning for fresh capex. We continue to be bullish on the cement sector. Our preferred pick from large cap is UltraTech Cement and midcap space is JK Lakshmi Cement."
12.09 PM: Market hits new highs
Intra day, both indices touched all time highs today, with Sensex hitting, 45,728 and Nifty touching, 13,435.
11. 51 AM: Market outlook
Vinod Nair, Head of Research at Geojit financial services said,"The market started this week continuing its winning streak, much of the momentum was from pharma and small caps stocks, the broader market is outperforming the main indices. European stocks have turned focus to the on-going post Brexit trade deal between the UK and EU, trading a bit cautiously. We expect the domestic market to remain strong backed by vaccine progress, economic recovery and strong FII inflows. However, it is advisable for investors to consider partial profit booking in pockets trading very expensive like highly valued large caps and trade vigilantly on small & micro caps though the momentum is expected to remain positive in the short to medium-term.
11.44 AM: Nifty technical outlook
Ashis Biswas, Head of Technical Research, CapitalVia Global Research said,"It has witnessed some strong trends in the market and an attempt to overcome the resistance level around the Nifty 50 Index level of 13340. While sustaining above 13200 is the key factor from a short-term perspective, our research suggests, maintaining above this level market to gain momentum and to open the gate for a movement till 13390. The momentum indicators like RSI, MACD to stay positive and market breadth to improve, further strengthening the view of a short-term bullish outlook."
11. 29 AM: Market outlook
Ajit Mishra, VP - Research, Religare Broking said,"Markets started the week on a positive note amid supportive global cues. Further, news of progress in the Covid vaccine and healthy inflows by FII helped markets to continue its upward trend. We are seeing buying interest emerging on every dip, thanks to rotational participants across the sectors. Technically, Nifty could face a hurdle around 13,450. The stock-specific trading approach is yielding decent returns so far and we suggest continuing with the same. Also, keep a close watch on global markets and upcoming domestic macro data for cues."
11. 12 AM: Airbnb plans to hike target price range for IPO to $50-60
Airbnb Inc has plans to raise the target price range for its initial public offering (IPO) to between $56 and $60 per share, underscoring demand for new U.S. stocks, a person familiar with the matter said on Sunday.
The U.S. home rental firm had on Tuesday set a price range for its IPO to sell shares at $44 and $50 apiece.
11.04 AM: Global markets
Overseas, Asian stocks are trading mixed on Tuesday as investors remained cautious over rising coronavirus cases, U.S. stimulus negotiations as well as Brexit talks between the U.K. and the European Union. In US, the Dow Jones Industrial Average and S&P 500 fell on Monday as traders worried about rising coronavirus cases and searched for clues on additional fiscal aid. The Nasdaq Composite, meanwhile, rose 0.5% to 12,519.95 and hit a fresh record high.
Meanwhile, Japan will compile a fresh economic stimulus package worth 73.6 trillion yen ($708 billion), Prime Minister Yoshihide Suga said on Tuesday, signalling his resolve to pull the country out of its coronavirus crisis-induced slump. The new stimulus package will include fiscal spending worth around 40 trillion yen, Suga said.
10. 49 AM: Canara Bank Rs 2,000 crore QIP
Canara Bank on Monday said it has set a floor price of Rs 103.50 per share for its qualified institutional placement (QIP) to raise up to Rs 2,000 crore. The bank had received shareholders' nod in its annual general meeting, held in August, for raising up to Rs 2,000 crore by way of QIP.
The sub-committee of the board - Capital Planning Process of the bank, at its meeting held on December 7, authorised the opening of the QIP issue and approved the floor price of Rs 103.50 per equity share, Canara Bank said in a regulatory filing.
10. 34 AM: A million new demat accounts for 5th month in a row
As bull frenzy grips the stock market, retail investors continue flocking to equities. Industry data showed that a million new dematerialised or demat accounts were opened for a fifth straight month in October, taking the total tally to 47.6 million. Nearly 1.3 million new accounts were added in September. There was a surge in retail participation in the stock market after people were forced to stay home since the outbreak of the coronavirus pandemic. Subsequently, a record 6.8 million new demat accounts were opened between April and October 2020. Only the first two months of the fiscal saw an addition of less than a million retail accounts.
10. 23 AM: Market outlook
Expressing morning view on the market, Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said,"This global market rally has surpassed all expectations. Europe had the best month ever, in November. Among emerging markets India has become an outstanding performer and is attracting huge FII inflows which is driving the momentum in the market. Sectoral rotation - from growth to value - is an important trend in the market now. Investors may remain invested in quality stocks, but refrain from aggressive buying at this stage"
10.11 AM: Nifty outlook
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said,"Market always tests patience in extreme scenarios, be it in the panic or euphoric moves. The ideal strategy in such an environment is to stick to a stock centric approach with a proper risk management and avoid aggressive bets overnight.
As far as levels are concerned, 13400- 13500 are the immediate levels in the upward direction; whereas on the lower side, 13292- 13242 should be seen as key supports. Any decisive move below 13242 would result in an extended profit booking in the market. At present, midcaps are enjoying their merry days and hence, breakout candidates are fetching handsome returns. But from here on, one should reduce the position size in midcaps too and should follow strict stop losses, because any day when profit booking aggravates, breakout failure is imminent."
9. 57 AM: Global market update
Asian markets are trading mixed as investors remained cautious over rising coronavirus cases across the globe and also closely watch US stimulus and UK Brexit talks. US markets closed lower as traders booked profits after recent record move as they closely watched rising covid-19 cases and more fiscal aid from governments. European markets closed lower as markets remained focused on efforts made to reach a Brexit trade deal between U.K. and EU. Banking and home builders stocks lost ground.
9. 43 AM: Stocks to watch today on December 8
Titan, Canara Bank, Aurobindo Pharma, Alkem Labs, Goa Carbon, Reliance Capital among others are the top stocks to watch out for in Tuesday's trading session
9. 34 AM: FII action
Foreign portfolio investors (FPIs) bought shares worth Rs 3,792.06 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,767.09 crore in the Indian equity market on 7 December 2020, provisional data showed.
9. 23 AM: Opening session
While Sensex gained 109 points to 45,564, Nifty rose 44 points to 13,400. Intra day, both indices touched all time highs today, with Sensex hitting, 45,586 and Nifty touching, 13,400.
9. 16 AM: Nifty outlook
Geojit Financial said in its note," We had refrained from considering the 13380 objective as a potential top, but instead expanded the expectations to 13700. However, standard deviation studies suggest either a slow down in the upside momentum or a rise in volatility. Towards this end, it would be prudent to pull up the downside marker to 13170."
9.08 AM: Market outlook
Vinod Nair, Head of Research at Geojit Financial Services said, "Market started the week continuing its winning streak. Much of the momentum was from pharma and small caps stocks, the broader market is outperforming the main indices. European stocks have turned focus to the on-going post Brexit trade deal between the UK and EU, trading a bit cautiously. We expect the domestic market to remain strong backed by vaccine progress, economic recovery and strong FII inflows. However, it is advisable for investors to consider partial profit booking in pockets trading very expensive like highly valued large caps and trade vigilantly on small and micro caps though the momentum is expected to remain positive in the short to medium-term."
8. 50 AM: Rupee closing
Rupee settled 10 paise lower at 73.90 against US dollar.
8. 40 AM: Nifty technical outlook
Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan said, "The Nifty continued with its positive momentum from the last week. As a result the index witnessed steady rise on December 7. The index has scaled above its daily upper Bollinger Band & is attempting to push the bands into an expansion phase. Once the bands start expansion, it will assist the price action on the way up. On the higher side, immediate hurdle zone is at 13380-13400. Overall, the index is expected to march towards 13700 in the short term. On the other hand, the support zone shifts higher to 13200-13250"
8. 30 AM: Last closing
Yesterday, Sensex closed at a record of 45,426, rising 347 points and Nifty ended 97 points higher at 13,355.
Intra day, both indices touched all time highs yesterday. While Sensex gained 339 points to 45,418, Nifty rose 96 points to 13,354. While Sensex has surged 8.44% or 3,533 points, Nifty rose 8.91% or 1,092 points in one month.
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