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"Nifty swing between red and green ahead of monthly FNO expiry. It finally ended the day in red with losses. Broader market outperformed. Pharma stocks were in lime light with index gaining 1.7% after India approved Merck's COVID-19 pill and two more vaccines for emergency use", Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services wrote in a note and added "FIIs have turned buyer after a three months of constant selling. Markets are expected to remain sideways until the end of the year due to thin volume, lack of trigger and rising Omicron cases. Q3 results season and build up to the upcoming budget session would be key events that the market would be looking for in Jan 2022".
Shares of Sharika Enterprises Ltd. rose 10% after the company received an order from Power Grid Corporation of India worth Rs 1.74 crore.
The order pertains to the implementation of smart city project at Powergrid Township project.
Source: Exchange Filing
Keppel Land to buy 49% stake in Puravankara high-rise Grade A commercial office project in Bengaluru, India for Singapore $21.1 million, company says on SGX.
Deal expected to be completed by Q22022.
Deal not expected to have any material impact on EPS for current FY.
Source: Bloomberg
LIC IPO: Insurer To Reduce Surplus Shared With Policyholders To 90%
Bajaj Auto options volume 2.3x the 20-day average, with 18,057 calls changing hands vs 3,710 puts.
Dr Reddy's options volume 1.9x the average, with 25,196 calls vs 10,199 puts.
Sun Pharma options volume 1.8x the average, with 42,070 calls vs 13,004 puts.
Source: Bloomberg
Shares of Inox Leisure Ltd. fell for the sixth straight day, on track for the longest losing streak since the period ended October 22, 2020.
The stock has shed over 9% during the streak while the NSE Nifty index rose over 2.5%.
Of the 22 analysts tracking the company, 20 maintained 'buy' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 40.1%.
Home Affordability at decadal best in 2021.
Affordability at historic best across cities in 2021.
Mumbai emerges as biggest gainer on affordability since 2010.
Ahmedabad and Pune are the most affordable Indian housing markets of 2021.
Affordability ratio in Bengaluru and NCR improved by significant margin
Source: Knight Frank India Affordability Index
Bajaj Auto Ltd. commences work at the new electric vehicles manufacturing unit for India and exports in Pune.
First vehicle expected to be rolled out by June 2022.
Vendors to invest additional Rs 250 crore
Plant spread across half a million square feet, to employ about 800 personnel.
Source: Press Statement
Aether Industries Ltd. seeks to raise Rs 757 crore selling new shares in an IPO, while its founder plans to sell as many as 2.75 million secondary shares, according to its initial prospectus.
The specialty chemical maker will consider a pre-IPO share sale to raise up to Rs 131 crore; new share issue in the IPO will be lower if the pre-IPO sale happens.
HDFC Bank and Kotak Mahindra Capital are managing the IPO.
Of the 11 analysts tracking the company, nine maintained 'buy' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 2.6%.
The broader markets outperformed their larger peers with S&P BSE MidCap little changed and S&P BSE SmallCap gaining 0.3%. Twelve of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Metal shedding over 1%.
The market breadth was skewed in the favour of bulls. About 1,968 stocks advanced, 1,298 declined and 118 remained unchanged.
Shares of PG Electroplast Ltd. rose nearly 7% in intraday trade after the company began manufacturing LED televisions for two customers at its Noida facility.
The company has an installed capacity of 5 lakh units of TVs with 70 inch-screen sizes.
The Noida facility is fully integrated with SMT lines for PCB assembly, clean room for LCM module and final product assembly and plastic moulding.
Source: Exchange facility
Coal India has appointed SK Mehta as CFO of the company from January 1, 2022. The appointment will be valid till the company appoints a regular director (Finance).
Kotak Institutional Equities on SBI Cards
Recent price correction offers a good entry point to investors.
Company is well positioned to deliver strong revenue growth and return ratios.
Leading players like SBI Cards are likely to take advantage of growth in credit card business in India
HIL Ltd. has said that the operations of Balasore plant in Odisha have been temporarily halted due to a strike that has been called.
In an exchange filing, the company said that the processes are in place to ensure business continuity and minimise disruptions.
Company also said that the situation is being closely monitored and steps are being taken to ensure resolution and normalcy.
Source: Exchange Filing
Ipca Laboratories: Choice Equity Broking initiated coverage of the stock with a recommendation of 'outperform'; price target set at Rs 2,401; an implied return of 15%.
Aurionpro Solutions Ltd. has supplied and installed Automated Fare Collection systems in record time for the Kanpur Metro Project. The company was selected earlier this year as a partner by the State Bank of India for supply and installation of AFC for the Kanpur Metro Rail project.
The project was inaugurated on Tuesday.
Source: Exchange Filing.
TeamLease Shares Jump As Kotak Upgrades Rating To 'Buy'
Most yields along the India sovereign yield curve fell, with 4-year bonds moving the most in Wednesday morning trading.
The 4-year yield fell 1.4bps to 5.536%
The 10-year yield fell 0.6bps to 6.471%
The 20-year yield remained unchanged at 6.914%
The 4-year-10-year yield spread was 93.5bps, vs previous close 92.7bps
Source: Bloomberg
Total project cost is Rs 593 crore. The project is to be completed in 24 months.
Tender pertained to design and construction of elevated viaduct and stations in Noida as part of metro rail project.
Source: Exchange Filing, Bloomberg
In an exchange filing post market hours Tuesday, Mazagon Dock declared January 7, 2022 as the record date for reckoning eligibility of shareholders for the purpose of payment of interim dividend.
All three analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 40.9%.
Foxconn Technology Group will revamp its management and operations in India after a labour protest forced the shutdown of a key smartphone plant in Tamil Nadu.
We have been investigating recent issues at our Sriperumbudur facility in Tamil Nadu and have found that some offsite dormitory facilities do not meet the required standards.
We are very sorry for the issue our employees experienced and are taking immediate steps to enhance the facilities and services we provide.
Foxconn Technology statement
Foxconn is the main assembler of Apple Inc.'s iPhones. It produces iPhone 12 handsets among other gadgets.
Thermax raised to 'add' from 'sell' at Spark Capital Advisors; price target at Rs 1,829.
Carborundum Universal cut to 'add' from 'buy' at Spark Capital Advisors; price target at Rs 960.
Source: Bloomberg
This comes after the anti-viral drug received EUA for treatment of mild to moderate covid-19 from U.S. FDA.
India's CDSCO has also recommended grant of permission to manufacture and market the Molnupiravir 200 mg capsule.
Shares of JB Chemicals & Pharmaceuticals rose nearly 3%, the biggest intraday gain in four sessions, to Rs 1,694.45 apiece. Of the seven analysts tracking the company, six maintained 'buy' and one maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 23.7%.
NTPC seeks renewables unit investor before IPO next year, reports Bloomberg.
BLOOMBERG EXCLUSIVE
NTPC is seeking a strategic investor in its renewables business prior to taking the unit public next year.
NTPC Renewable Energy, a subsidiary, plans international roadshows in the next fiscal year to find a partner.
Source: Company official with knowledge of the matter
Initiates coverage on the stock with 'outperform' rating; price target set at Rs 3,100, an implied return of 19.32%
CAMS is India's largest MF RTA with aggregate market share of 70% as of September 2021.
AAUM serviced by CAMS outperformed MF Industry AAUM growth during FY18-21, due to market share gain.
CAMS is the best play on the AMC story in India as it is largely immune to market share movements between mutual funds.
CAMS has been able to show high growth across key performance indicators like MF AAUM serviced, Unique Investor services and total transaction processed during FY15-H1FY22.
High entry barriers in MF RTA industry a positive for the company. Key entry barriers include (a) high technology intensity, compliance requirements, (b) requirement of extensive branch network and (c) knowledge base acquired over years of experience.
Target price of Rs 3,100 implies a FY24 PE ratio of 38x.
Expect revenue CAGR of 16.6% on account of 15% growth in mututal based revenue and 30% growth in non-mutual fund based revenue for the period of FY21-24E.
Key Risks: Changes in regulation, higher-than-expected yield compression and slower-than-expected AUM growth
Of the eight analysts tracking the company, six maintained 'buy' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 14.4%.
Indian bond traders will look forward to a Rs 20,000 crore ($2.7b) sale of Treasury bills after yields on 10-year sovereign bonds rose to the highest since April 2020.
10-year yields ended 1bp higher to 6.48% on Tuesday after rising to 6.50% intraday, on concerns of over supply of the securities.
Global funds sold Rs 51 crore of sovereign bonds under limits available to foreign investors Tuesday, and withdrew Rs 724 crore of corporate debt.
State-run banks bought Rs 575 crore of sovereign bonds on Tuesday CCIL data. Foreign banks bought Rs 267 crore of bonds.
Source: Bloomberg
InoBat is a manufacturer of premium innovative batteries for E-mobility.
The investment is likely to give Amara Raja a foothold in European EV ecosystem.
Investment is part of the company's 'Energy and Mobility' strategy that it unveiled earlier this year.
InoBat specialises in manufacture of electric batteries to meet demand in automotive, commercial vehicle, motorsport and aerospace sectors.
Of the 20 analysts tracking Amara Raja Batteries, 12 maintained 'buy', five maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 22.9%.
Source: Exchange Filing, Bloomberg
The broader indices outperformed their larger peers with S&P BSE MidCap rising 0.2% and S&P BSE SmallCap adding 0.4%. Fifteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Energy gaining 0.5%.
The market breadth was skewed in the favour of bulls. About 1,890 stocks advanced, 502 declined and 73 remained unchanged.
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