Broader markets mirrored the up move on Tuesday while India VIX gained 2.2%.Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic equity benchmarks recouped all intra-day losses on Tuesday to close the day with gains. S&P BSE Sensex ended at 49,517, while the 50-stock NSE Nifty closed at 14,563. Bharti Airtel, State Bank of India, and Reliance Industries were the top gainers on Sensex while Nestle, Titan, and Asian Paints were the top drags. Among sectoral indices, Nifty PSU bank index surged 5.8%. Only Nifty FMCG and Nifty Pharma closed the day in red.
The central bank on Monday said that the gross non-performing asset (GNPA) ratio of banks could double to reach 13.5% by September this year in a base scenario while on the higher side it is expected to reach 14.8%. The GNPA ratio is used to assess loan losses in the banking sector. The RBI in the report said that if a severe stress situation occurs the bad loan ratio of the banking system could be the highest since March 1997, when it stood at 15.7%. RBI Governor Shaktikanta Das, in the report, said that India’s banking system faced the pandemic with relatively sound capital and liquidity buffers built assiduously in the aftermath of the global financial crisis and buttressed by regulatory and prudential measures.
Highlights
Domestic equity benchmarks ended the day in green, bouncing back from their intra-day lows. S&P BSE Sensex closed at 49,517 points while 50-stock Nifty ended at 14,563 -- once again reaching fresh all-time highs. Broader markets were also seen surging as Nifty Midcap 50 outperformed the benchmark and gained more than 1%. Bharti Airtel, State Bank of India, and Reliance Industries were the top gainers while Asian Paints, Titan, and Nestle were top laggards. India Vix gained again on Tuesday, still above 22 levels. Among Nifty sectoral indices, only Nifty Pharma and Nifty FMCG closed in the red.
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In the third quarter of the fiscal year, ace investor Rakesh Jhunjhunwala was once again a busy man. 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. The billionaire investor increased his holding in pharma firm Jubilant Life Sciences and booked profits in the information technology company Firstsource solutions, both are trading over 200% higher from their March 2020 lows.
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Sensex and Nifty recouped all intra-day losses and closed the day with gains. Once again the benchmark indices hit fresh all-time highs.
Asian Paints, Titan, and Hindustan Unilever were the top drags on Sensex just ahead of the closing bell.
State Bank of India's shares jumped 3.3%, followed by Reliance Industries Limited and Bharti Airtel making them the top Sensex gainers minutes ahead of the closing bell.
Markets regulator Sebi has imposed a penalty totalling Rs 85 lakh on Orient Resorts (India) and two individuals for not complying with the watchdog’s earlier directive to wind up its operations and refund investors’ money. The fine has been imposed on Orient Resorts (India) Pvt Ltd (ORIPL), Dilpesh V Shah and Darshanbhai Arvindbhai Shah.
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The dollar-rupee January contract on the NSE was at Rs 73.54 in the last session. The open interest fell 1.5% of the January series contracts.
~ ICICI Direct
Shares of GAIL (India) on Tuesday gained nearly 6 per cent after the company announced it will consider buyback of shares. The stock jumped 5.74 per cent to Rs 143.50 — its 52 week high — on BSE. On NSE, it gained 5.74 per cent to its one-year high of Rs 143.50.
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India has close to 6.8 million Udyog Aadhar registered MSMEs and another 63 million MSMEs. As per an estimate, currently, there are close to 30 unicorn Indian startups, and 18 out of the 30 unicorns have significant foreign direct investments. These bold statistics constituting almost 45 per cent of the manufacturing output, 95 per cent of the number of industrial units, 40 per cent of exports, and employing nearly 110 million people make MSMEs the largest source of employment after the agriculture sector. MSMEs lead to entrepreneurial development and the diversification of the industrial sector. They also provide depth to the industrial base of the economy. Employment opportunities are generated, and the capital cost per employee is low. With the services sector dominating the MSME and with MNCs outsourcing their requirements to Indian service providers, MSME finance’s scope has increased.
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"With progress in developing an effective vaccine for COVID-19 and signals of faster-than-expected recovery in the domestic economy, and also supported by a low base, we expect the real GDP to grow at 11% in FY22, from the estimated contraction of 7% to 7.5% in FY21," said Brickwork Ratings.
The gravity defying move continues and although, it has turned into a bit of euphoria, markets are not willing to give any correction at all. Beyond 14500, next psychological level would come around 14600 and on the flipside, 14350 – 14300 becomes the immediate support. We reiterate that even if one remains with the flow, avoid becoming complacent and too aggressive. Hence, as a short term trader, it’s advisable not to create leveraged positions.
~Sameet Chavan Chief Analyst-Technical and Derivatives, Angel Broking.
After having battled pandemic and asset quality risks in the previous year, India’s banking sector looks poised for a better year ahead with further upside and recovery in earnings. Global brokerage and research firms Bank of America Securities and Macquarie paint a positive picture of what lies ahead for the banks. Although near term volatility has not been ruled out with the beginning of the NPA recognition cycle, the view for the next 12 months is largely optimistic.
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Burger King India share price extended losses, falling another 6.75 per cent to Rs 140 apiece on BSE today. The stock has tumbled over 15 per cent in two days. The quick-service restaurant’s (QSR) stock hit 10 per cent lower circuit in the previous session. Burger King stock has fallen 36 per cent from its all-time high of Rs 219.15 apiece in less than a month.
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Dalal Street has been buzzing with analysts claiming that the time has now come to own midcap stocks after years of underperformance when compared to the large-cap equities. “The midcap index has resolved out of bear phase as it logged a resolute breakout from the three years falling trend line, indicating resumption of a major up trend,” said brokerage and research firm ICICI Direct. Aided by the view that broader markets are likely to outperform the benchmarks, analysts at ICICI Direct have chalked out how they would build a midcap momentum portfolio for the medium term to extract maximum returns from this bullish outlook for the broader markets.
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With dollar Index and US yields rising and RBI warning on stock markets/asset prices it seems that we may see some risk aversion in near term. For the present, flows continue and Rupee remains in the range of 73.30/60. Sell near to 73.60 for exports and hedge towards 73.30 for imports could be today's trade: Anil Kumar Bhansali, Head- Treasury, Finrex Treasury Advisors
After a massive jump in Tata Motors share price on Monday, the stock continues to soar on Tuesday morning. Shares of Tata Motors gained 8% on NSE to trade at Rs 238 apiece.
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The continued strengthening in dollar index has been ruling the USDINR momentum since past few sessions. However, a very sharp fall was prevented with the rise in domestic markets and steady FII inflows. According to a financial stability report by the RBI, banks gross non-performing assets may rise to 13.5% by September 2021 from last 7.5% raising concerns on the banks' financial position. Investors are being cautious ahead of India’s CPI and IIP data. Considering the global dollar strength, prospects of inflows and RBI’s activeness on the buy side, the USDINR pair is expected to move in a range of 73.10-73.50 levels in the near term. If 73.50 level is taken out, we might see a steady fall in the USDINR pair close to 73.80 levels. One can sell in tranches close to 73.50 levels if the pair doesn’t break the same after observing the price action for initial hour. One can look for covering near term import payments on intraday dips close to 73.15-25 levels those who haven’t covered earlier: Amit Pabari, managing director, CR Forex Advisors
The markets are feeling toppish at 14500. While we feel the Nifty can go up to 14600, traders should exercise caution and book profits at regular intervals. We have a good support at 14200-14250 levels. On an intraday basis if we can keep above 14500, we should be able to achieve 14600 sooner than later: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
"The markets are feeling toppish at 14500. While we feel the Nifty can go up to 14600, traders should exercise caution and book profits at regular intervals. We have good support at 14200-14250 levels. On an intraday basis, if we can keep above 14500, we should be able to achieve 14600 sooner than later," said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Nifty to head towards 14530, buy on decline towards 14400 as stock-specific action to be in focus during earning season. The Bank Nifty option structure indicates that it is likely to consolidate between 32000-32500 levels.
~ ICICI Direct
What lies for Indian Rupee in 2021 is the biggest question for major importers, exporters and traders. The Covid-19 badly impacted major global economies in 2020 and to revive it major central banks pumped abundant liquidity in the system without any other thoughts. Resultant, major markets flooded with liquidity and made multi or All-Time-Highs.
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Sensex began the day's trade 100 points lower. Nifty 50 was holding above 14,450. Broader markets were trading mixed.
Sensex and Nifty ended the pre-open session in the red on Tuesday. Nifty was still above 14,450 while Sensex held 49,200.
Sensex was down 100 points while the Nifty 50 was 23 points lower in the pre-open session on Tuesday morning.
Nifty was trading in the red on Tuesday morning in the pre-open session but was still holding above 14,450. Sensex, on the other hand, was dancing between gains and losses.
Indian share market may open in negative territory on Tuesday, taking cues from the global peers. In the previous session, Nifty 50 index jumped 137.5 points or nearly one per cent to close at 14,484.75 while the BSE Sensex rallied 486.81 points or 1 per cent to close at 49,269.32. A host of factors such as October-December quarter earings, COVID-19 vaccine rollout, oil prices, rupee movement and other global developments will set the market tone today. The trends on SGX Nifty suggested a negative opening for the domestic equity market benchmarks.
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SGX Nifty trimmed gains further to now sit just 19 points lower, minutes ahead of the pre-open session on Monday.
For the January series, maximum Call Open Interest is placed at 15000 strike with 18.98 lakh contracts. This is followed by 17.32 lakh contracts at 14000 strike. Most Put OI is at 14,000 strike with 29.14 lakh contracts.
Fortis Healthcare: Rakesh Jhunjhunwala bought 50 lakh shares of Fortis Healthcare at Rs 179.40 apiece. Burger King India: Chetan Rasikal Shah bought 22.80 lakh shares at Rs 150.16 apiece and sold 12.57 lakh shares at Rs 150.15 per share.
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"The upside momentum continued in the market for the second consecutive session on Monday post upside breakout of small range of Friday at 14250 and the Nifty closed the day higher by 137 points. The short term trend of Nifty continues to be positive. There is a possibility of some more upmove or range movement for the next 3-4 sessions, before showing sharp one day of decline from the new highs. The next upside levels to be watched at 14600-14800. Immediate support is placed at 14380," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Nifty futures on Singapore Exchange were trading 32 points lower during the early hours of Tuesday but soon trimmed some losses, however still remained in the red.
With prices of pulses ruling below the minimum support price (MSP), the National Agricultural Cooperative Marketing Federation (Nafed) has decided to begin procurement from Maharashtra, Gujarat, Karnataka, Telangana and Andhra Pradesh, senior industry people said.
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Loan losses in the banking sector, as measured by the gross non-performing asset (GNPA) ratio, could nearly double to 13.5% by September 2021 in a baseline scenario, and to as high as 14.8% in a severe-stress scenario resulting from the pandemic, the Reserve Bank of India (RBI) said on Monday. The GNPA ratio stood at 7.5% in September 2020.
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