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The broader indices underperformed their larger peers with S&P BSE MidCap little changed and S&P BSE SmallCap adding 0.4%. Sixteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Power and Utilities rising over 2%.
The market breadth was skewed in the favour of bulls. About 1,889 stocks advanced, 1,492 stocks declined and 108 remained unchanged.
HUL Meets Maharashtra Distributors Amid Threat To Intensify Boycott
Indian government bonds fell sharply, joining a global sell off, with yields climbing to their highest in nearly two years.
Yield on benchmark 10-year government bonds jumped 6 bps to 6.52%, highest since February 2020.
Source: Bloomberg
Upgrades to 'buy' from 'hold'; price target raisedto Rs 1,675 from Rs 1,575.
Long-term story remains intact.
Strong growth potential of Indian non-life insurance remains the key investment argument of ICICI Lombard.
Stable business model and RoE illustrates the stability of the business
Concerns on competition are overdone as the opportunities in non-life insurance is huge and ICICI Lombard has been able to maintain its market share.
Significant growth levers exist such as recovery in motor new car registrations, synergies from the acquisition of Bharti Axa etc.
Cost synergies with Bharati Axa is likely to be achieved over next 12 months, while revenue synergies is likely to take 24 months.
Of the 26 analysts tracking the company, 18 maintained 'buy', three maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 16.4%.
Biocon Biologics Approves Merger With Serum Institute's Subsidiary
Shares of HCL Technologies rise for the 11th day, longest winning streak in 22 years.
Shares of L&T Technology advance for the eighth day.
Shares of Quess Corp gain for the sixth day.
Source: Bloomberg
The company’s integrated zinc and lead output rose 11% to 261,000 tonnes in Q3, compared with 235,000 tonnes a year earlier.
Integrated silver production dropped 5% YoY to 173 tonnes.
Mined metal production rose 3% YoY at 252,000 tonnes.
Of the 20 analysts tracking the company, four maintained 'buy', eight maintained 'hold' and eight maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 5.5%.
Trading volume on the stock was 2.3 times the 30-day average volume, for this time of the day, according to Bloomberg data.
Share price crossed above the 50-day, as well as the 200-day simple moving average, indicating potential upward price momentum.
Sri Lanka will be able to sign an agreement with India to share an oil tank farm in eastern Sri Lanka next week, after the cabinet approved the proposal, according to Sri Lanka's Energy Minister Udaya Gammanpila.
14 of the 99 tanks in the farm will be leased to the Sri Lankan unit of Indian Oil Corp for 50 years while Ceylon Petroleum Corp. will hold 24 tanks.
Cabinet also agrees to a plan for newly incorporated Trinco Petroleum Terminal to own 61 new oil tanks.
Source: Bloomberg
The company, which transports about 70% of its sales by rail, is only getting about half the number of rakes it requires daily at its Odisha plant.
We have had to lose the sales as time is of the essence.
We are seeing this kind of shortage for the first time and the intensity is high.
The company and its peers have discussed the problem with officials in steel ministry and rail ministry.
VR Sharma, Managing Director, Jindal Steel & Power Ltd.
Source: Bloomberg
The broader indices underperformed their larger peers with S&P BSE MidCap little changed and S&P BSE SmallCap gaining 0.2%. Fourteen of the 19 sectoral indices compiled by the BSE Ltd. advanced with S&P BSE Power, Telecom, Utilities and Energy rising over 1%.
The market breadth was skewed in the favour of bulls. About 1,811 stocks advanced, 1,485 declined and 126 remained unchanged.
The Delhi High Court on Tuesday concluded hearing arguments on a petition by ruling Bharatiya Janata Party’s lawmaker Subramanian Swamychallenging the sale of flag carrier Air India Ltd. to Tata Sons Pvt.
Swamy said valuation of Air India is “illegal and arbitrary”; alleged “rigging” in the bidding process.
A lawyer, representing the Indian government in the court, denied any wrongdoing in the sale process.
Lawyers for the Indian government and the Tata unit that won the bidding urged the court to dismiss the petition.
Pendency of the petition can deter lenders for the deal, Tata’s lawyer Harish Salve said during the hearing.
Source: Bloomberg
Ambani’s Jio Plans Its Biggest Bond in Debt Market Return
European energy shares are in focus as OPEC and its allies are likely to revive halted oil production during their meeting toay.
The 23-nation OPEC alliance led by Saudi Arabia and Russia is all set to ratify another modest output revival of 4,00,000 barrels a day.
In Focus: Royal Dutch Shell, BP, TotalEnergies, Eni, Repsol.
Source: Bloomberg
Atul Ltd. raised to 'neutral' from 'sell' at Phillip Securities; price target at Rs 9,000
Source: Bloomberg
Rupee bonds fell as traders took into account a jump in U.S. Treasury yields. The rupee declined in line with regional peers.
10-year yields climbed 3bps to 6.49% on Tuesday.
USD/INR gains 0.4% to 74.5425 on Tuesday, most in nearly three weeks
Source: Bloomberg
Maintains 'buy' on the stock with the target price unchanged at Rs 631
Expect company to register 12.13% YoY consolidated revenue growth in Q3FY22.
Expects 210bps YoY erosion in Ebitda margins mainlydue to ~320bps increase in raw material prices.
Believes 20% growth in foods segment on a high base of 74% growth is commendable.
Maintains 'accumulate', but reduces target price to Rs 580 from Rs 605; an implied return of 12.7%.
Consumption has been adversely impacted by inflation.
Volumes remained flat due to slowing consumption and high base for rural.
Margin likely to remain under pressure on a YoY basis.
Pricing interventions at the start of FY22, cost-reduction programs and operating leverage should support operating margin in FY22, which has faced sharp inflationary pressure for the good part of the year.
Of the 40 analysts tracking the company, 27 maintained 'buy', 10 maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 21.3%
Yields rose across the India sovereign yield curve in Tuesday morning trading.
The 4-year yield rose 3.9bps to 5.59%
The 10-year yield rose 3.1bps to 6.491%
The 14-year yield rose 3.6bps to 6.955%
The 4-year-10-year yield spread was 90.1bps, vs previous close 91bps
Source: Bloomberg
Alembic Pharmaceuticals Ltd. received final approval from the U.S. FDA for its Abbreviated New Drug Application for Doxycyclcine Hyclate Delayed-Release Tablets USP, 75 mg, 100 mg, 150 mg and 200 mg.
This is therapeutically equivalent to Doryx tablets. The tablets are indicated to reduce the development of drug resistant bacteria.
It has an estimated market size of $10 million for twelve months ending September 2021, according to IQVIA.
Source: Exchange Filing
Tata Motors Shares Slip After CLSA Says 'Sell'
NMDC raised to 'add' from 'reduce' at Equirus Securities; price target set at Rs 144.
JSW Steel raised to 'buy' from 'add' at Equirus Securities; price target set at Rs 856.
Fino Payments: ICICI Securities initiates coverage on the stock with a recommendation of 'buy'; price target set at Rs 475.
Source: Bloomberg
The broader indices outperformed their larger peers with S&P BSE MidCap adding 0.5% and S&P BSE SmallCap gaining 0.75%. Barring S&P BSE Information Technology, all the other 18 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Power and Utilities leading the gains.
The market breadth was skewed in the favour of bulls. About 2,158 stocks advanced, 599 declined and 71 remained unchanged.
Advances at approximately Rs 12.6 lakh core as of Dec. 31, 2021, up 5.1% quarter-on-quarter.
Retail loans up 4.5% QoQ; commercial and rural banks loans up 6% QoQ; corporate and wholesale loans up 4.5% QoQ.
Deposits rose 13.8% YoY and 2.8% QoQ to Rs 14.06 lakh crore.
CASA ratio at 47% as of December-end.
Source: Exchange Notification
Rupee bond traders are looking forward to a Rs 19,340 crore ($2.6b) auction of state government debt. The rupee may slip on preliminary trade data indicating a deficit for December.
USD/INR falls 0.1% to 74.2588 on Monday.
India’s merchandise exports climbed 37% YoY to $37.3 billion in December, while imports soared a little over 38% to $59.3 billion, according to preliminary data released by the nation’s trade ministry on Monday.
Trade deficit in December was $22 billion, wider than the $15.7 billion gap seen in the year-ago period.
10-year yields climbed by 1 bp to 6.46% on Monday.
Global funds buy net Rs 903 crore of India stocks Monday: NSE
They sold Rs 30 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 307 crore of corporate debt.
State-run banks bought Rs 1,590 crore of sovereign bonds on Jan. 3: CCIL data. Foreign banks sold Rs 1,140 crore of bonds.
Source: Bloomberg
Vedanta Ltd.'s aluminum production in October-December was 2% higher from the prior three-month period.
Total aluminium production at Rs 5,79,000 tonnes
Total oil and gas gross output in Q3 was little changed YoY at 14.6 million barrels of oil equivalent.
Saleable steel output rose 3% YoY to 3,50,000 tonnes in Q3.
Source: Exchange Filing
Adani Ports and Special Economic Zone Ltd.handled a cargo volume of 234.31 MMT during the nine months ending Dec. 31, 2021. This is a growth of 35% and exceeds the volume handled by Adani Ports in FY20.
Non-Mundra ports grew by 74% and contributed 52% of the total cargo basket.
Mundra port grew by 8% and handled cargo volume of 113 MMT.
Dry cargo volume registered a growth of 49%.
Source: Exchange Filing
Q3 Update: High Inflation Slowed Consumption In India, Says Marico
Shriram EPC Ltd. will issue equity shares of the company worth Rs 350 crore to Mark AB Capital Investment LLC, according to an exchange filing.
It will also issue compulsory convertible debentures amounting to Rs 175 crore and non-convertible debentures of Rs 175 crore, as per a resolution plan.
Source: Exchange Filing
Biocon Biologics approves a merger of Covidshield Technologies, a wholly-owned subsidiary of Serum Institute Life Sciences, with self.
As a part of the transaction, Biocon Biologics will get committed access to 100 million doses per annum for 15 years.
Doses will be primarily from SILS’s upcoming vaccine facility in Pune with commercialization rights of the SILS vaccine portfolio (including Covid-19 vaccines) for global markets.
Adar Poonawalla will have a board seat in Biocon Biologics.
Biocon Biologics will offer a 15% stake to SILS.
There is no cash consideration involved
Source: Exchange Filing
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