Early Q3 nos lift mkts; Sensex ends 487 pts up at 49,269, Nifty at 14,485

Volatility index, India VIX, surged 8.5 per cent to 22.4 levels

5:15 PM

TECH VIEW :: Sumeet Bagadia, Executive Director, Choice Broking.

Nifty started the week with gap up opening but in first half of the session saw some profit booking as it made an intraday low at 14383. But later, a sharp recovery was seen as the benchmark index closed at 14484.75 with a gain of 138 points while Bank Nifty didn’t performed well and closed the session at 31998.90 with a moderate loss of 85 points. Nifty Auto and IT has showed good momentum but Metal, Energy and media showed profit booking. Tatamotors, Hcltech, Infy were among the top gainers while Tatasteel, Bajajfinsv , Reliance among the top losers. Index has been trading in Higher high and Higher Bottom Formation which suggest bull trend for upcoming session As the benchmark index has been trading above 21 HMA which also points out strength in the index. Now, the Nifty has a strong support at 14350 levels while upside resistance may come around 14565 levels.

5:14 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst, HDFC Securities

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. After opening on a positive note on Monday, the market shifted into a consolidation in the early part of the session. It later showed a gradual upmove with range in the later half and finally closed near the all time high. The opening upside gap remains partially filled.

A small body of positive candle was formed with long lower shadow. Technically this pattern indicate buy on intraday dips opportunity in the market. The long bull candles of Friday and Monday signal an upside breakout of the small range at 14250 levels. New all time high was formed at 14498 levels.

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.

 

4:55 PM

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive VP, Equity Technical Research at Kotak Securities

Another day with tremendous gains for the market. Markets closed higher for the day, led by auto, IT, pharmaceuticals and selected FMCG stocks. During the day, the market fell three times to 14400/48950 levels, but found huge support at those levels to scale higher. Today the market closed at the highest point of the day despite the weakness in US stock futures, rise in the dollar index, and crude prices are at an alarming level of $55. It seems that the market has gained momentum due to the bright possibilities of bold announcements in the forthcoming Union Budget.

Technically, the market has left an Exhaustion gap between today's lows and yesterday's highs. It is an indecisive candlestick pattern at the top of the current movement and traders should take some profit at current levels until the Nifty / Sensex crosses do not cross the 14520/49370 level. Support exists at 14440/49000 and 14380/48900. One should be careful when adding long positions at high level.

4:42 PM

MARKET CLOSING COMMENT :: Keshav Lahoti, associate equity analyst at Angel Broking

Nifty started the week on a positive note and closed up by 1%. Rally was led by auto stocks due to strong demand for vehicles and IT stocks due to better than expected result of TCS for Q3FY21. Nifty and Nifty IT continues its trend of making new all time high. Sectoral indices were mixed. Global cues were negative: Dow Futures, Nasdaq Futures and FTSE were down by 0.7% , 0.5% and 0.5% respectively. We are bullish on the market. Although after the sharp rally, we are concerned about the valuation of the market. We advise investors to book profit in a small portion of their portfolio.

4:29 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Research, HDFC Securities

Indian equity Benchmark indices ended at fresh record closing highs on Jan 11. The Nifty opened gap up and after a minor correction, closed almost at the opening highs.   At close, the Nifty was up 137.50 points or 0.96% at 14,484.80. Over the past two months Nifty has risen almost 20%.

 

Volumes on the NSE were on the higher side compared to recent averages. Among sectors, IT, Auto. FMCG and Pharma were the main gainers while Metals and PSU Bank were the main losers.

Nifty has closed the day with another almost 1% gain on Jan 11. In the process Indian markets were among the best performing markets globally on Jan 11. Positive newsflow including results are pushing indices and stocks higher. A negative advance decline ratio however is a sign of caution after such a steep rise. Typically distribution happens in such times of euphoria, which gets noticed a few days later.

 

 

 

3:58 PM

Currency View :: Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking

We are witnessing a reversal in the dollar index, while political stability in the U.S. and the probability of a further fiscal stimulus package has pushed the long-term US yields higher. Moreover, there is a possibility that the Fed may reduce its bond buying plan towards the end of this year, which could further push US yields higher and consequently hurt the rupee. Back home, with RBI mopping up dollar inflows, the local currency can test 73.80 to 74 levels in the coming sessions.

 

We expect the rupee to trade in a broad range of 73 to 74.20 levels for the rest of this month.

3:56 PM

TECH VIEW :: Rohit Singre, senior technical analyst at LKP Securities

Index opened a day with gap and managed to hold the bullish stream for a day and closed a day near good hurdle zone of 14500 with gains of nearly one per cent forming a dragonfly kind of Doji candle pattern on the daily chart. Going forwards index has shifted its support to 14400-14300 zone if managed to hold above-said levels we may see the index to march towards 14550-14600 zone which is immediate hurdle on the higher side

3:56 PM

MARKET CLOSING COMMENT :: Ajit Mishra, VP - Research, Religare Broking

Markets started the week on a robust note led by positive global cues and strong earnings from IT behemoth TCS. Despite a tepid show by banking stocks, the Nifty managed to end with gains of 1% to close just shy of 14,500 levels. The broader markets underperformed wherein both Midcap and Smallcap ended flat. On the sector front, IT and Auto were the top outperformers in today’s trade whereas Metal, Capital Goods and Oil & Gas ended with losses.

 

The anticipation of better than expected earnings season combined with supportive global cues aided the upbeat start. Going forward, stock-specific volatility would remain high as earnings season would gain pace. Further, key macro data like CPI, WPI and IIP would also be actively tracked by investors. Amid all, we reiterate our positive yet cautious stance on markets and advise aligning positions according to the prevailing trend.

 

3:55 PM

MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services

Improved outlook for 3rd quarter earnings along with strong global cues helped Sensex to breach 49,000 mark. The rally in the market was led by the IT sector backed by firm earnings results, however, small and mid-cap stocks were under pressure. Hopes of a new US stimulus to be unveiled this week created an upbeat movement in Wall Street while profit booking is seen in the European markets. This ongoing rally is being fueled by strong Q3 earnings preview, foreign fund inflow and optimism around Union Budget 2021

3:54 PM

MARKET CLOSING COMMENT :: Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares

Indian markets opened on a positive note despite subdued cues from its Asian market peers and maintained their upward momentum following gains in IT, TECK and FMCG stocks. Healthy buying was observed in blue-chip stocks like Infosys, HCL Tech and HDFC. During the afternoon session the sentiments continued to remain upbeat as India’s exports grew 16.22% YoY to $6.21 billion in the first week of January, mainly driven by healthy growth in pharmaceuticals, and engineering sectors, reflecting signs of revival. Imports during January 1-7 too increased by 1.07% to $8.7 billion as against $8.6 billion in the same period of 2020. Some support also came as Fitch Ratings expects India's economy to contract by a record 9.4% in the current fiscal year ending March 2021 (FY21) amid the shock from coronavirus pandemic but this represents a 1.1% point improvement from its previous forecast, reflecting a stronger-than-anticipated rebound in 3Q 2020. On sectoral front, today's rally was mainly driven by IT, Auto, FMCG and Pharma stocks while laggards were Metals and Banking stocks

3:52 PM

Market stats :: Market breadth marginally tilts towards declines

3:51 PM

Index contributors today :: IT, HDFC duo lift index

3:49 PM

SECTOR OF THE DAY :: Nifty Auto index hits 28-month high

3:48 PM

SECTOR OF THE DAY :: IT stocks log stellar rally, Nifty IT settles over 3% higher

3:46 PM

Broader marker check :: S&P BSE SmallCap underperforms benchmarks

3:44 PM

Sectoral trends on NSE at Close :: Financials slip on profit-booking; auto, IT shine

3:43 PM

Sensex Heatmap at Close :: HCL tech zooms 6%, Infosys 5% after TCS's strong Q3 nos

3:34 PM

CLOSING BELL

Frontline Sensex hit a record peak of 49,304 in the intra-day deals today before settling 486.8 points, or 1 per cent, higher at 49,269.32 levels.

On the NSE, the Nifty50 ended at record closing peak of 14,484.75 levels, adding 137.5 points or 0.96 per cent today. Earlier today, the index touched lifetime high of 14,498. 

3:26 PM

Tata Motors soars 13%

3:25 PM

Metal stocks dip in a firm market

3:17 PM

Bright outlook: Sun Pharma to Cipla, drug firms set for Q3 health boost

Domestic drug sales in December indicated that the third quarter of the ongoing financial year is going to result in earnings growth recovery for the sector. Analysts expect earnings growth to be in the range of 30-40 per cent for drug firms owing to both domestic recovery as well as strong export opportunities. READ MORE

3:04 PM

Nifty Auto index at over 2-year high on hopes of strong Q3 earnings growth

Among individual stocks, Tata Motors rallied 6 per cent to Rs 211 on the National Stock Exchange (NSE). Ashok Leyland, Maruti Suzuki India, TVS Motor Company, Mahindra & Mahindra, Bharat Forge, MRF and Bajaj Auto from the auto index were up 2 per cent to 4 per cent. READ MORE

2:54 PM

MARKET UPDATE:: Sensex at day's high

2:46 PM

RIL drags, down over 1%, in an otherwise firm market

2:45 PM

Stocks that hit 52-week high on BSE today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(%)
ACC	1792.80	1794.75	1.81
ADANI TRANSMISSI	450.20	464.25	-0.91
ALKEM LAB	3095.50	3123.65	1.82
AMARA RAJA BATT.	991.80	1009.00	-1.03
APL APOLLO TUBES	932.45	989.00	-3.03

2:35 PM

Lupin, Tata Consumer, Colgate Palmolive, ACC lead among Nifty Next 50 pack

2:23 PM

Strong gains in IT stocks, HDFC twins help Sensex hold 49,000

2:15 PM

NEWS ALERT :: Dr Reddy's Labs launches Febuxostat tablets in the US

>> The tablet is a therapeutic equivalent generic version of Uloric (Febuxostat) Tablets approved by the US Food and Drug Administration (USFDA).

>> The Uloric brand and generic had US sales of approximately $108 million MAT for the most recent twelve months ending in October 2020 according to IQVIA Health.

(Source: BSE filing)

2:12 PM

BROKERAGE VIEW :: HDFC Securities on FMCG Sector

>> FMCG sector has underperformed Nifty by 42% since our cautious stance in April '20 initiation. Valuation premium for select stocks has narrowed down to reasonable levels and looks particularly attractive compared to richly valued (~80x forward PE) consumer discretionary segments (Paints, QSR, Jewellery, and Retail). While absolute PE-rating still looks unlikely, we see a more balanced risk-reward now for the FMCG sector for FY22/FY23 with earnings led stock price returns.

>> Outlook: Sector has witnessed growth divergence in 1HFY21 with essential and packaged food categories growing significantly. We expect growth divergence to largely normalise in FY22. Essential categories are cooling off from elevated levels while weaker performing categories (QSR, BPC, Cigarette, etc.) are expected to recover in FY22. RM inflation is high, particularly crude-led; thereby price hikes and lower promotions are expected in FY22. Earnings growth will be largely topline led with stable to modest increase in margins. Health, hygiene and packaged foods have multi-year growth tailwinds, given low penetration levels and changing lifestyles.

>> View: We expect that, with stability in trade channel, supply chain and consumption trend, companies' initiatives will play a key role in driving growth in FY22/FY23. Companies like DABUR, MARICO and GCPL are taking several initiatives to help lift growth in the medium term. Thereby, we are upgrading them from REDUCE to ADD. Sector bellwethers HUL and NESTLE continue to execute well but still do not offer absolute upside in our base case and, thus, we maintain REDUCE on them.

2:04 PM

BHEL secures Rs 450 crore order for steam and power plant from NALCO

-- State-run engineering firm BHEL on Monday said it has bagged an order worth Rs 450 crore for a steam and power plant from National Aluminium Corporation Limited (NALCO).

-- The Rs 450 crore order has been placed on BHEL by NALCO for its 5th Stream Alumina Refinery Expansion Project at Damanjodi, Odisha, Bharat Heavy Electricals Limited (BHEL) said in a statement.

-- BHEL's scope in the contract includes design, engineering, manufacturing, supply, erection, testing and commissioning of 1x300 TPH Coal Fired Boiler, 18.5 MW Steam Turbine Generator and associated auxiliaries, including Flue-gas desulfurization (FGD) and selective catalytic reduction (SCR). (Text Source: PTI)