Stock Market Today: Sensex, Nifty Rise For Second-Straight Day; FPIs Remain Net Sellers

Overseas Investors in Indian equities continue being net sellers for the eighth straight day on Tuesday.

Foreign portfolio investors off loaded equities worth Rs 628.07 crore, according to data from the National Stock Exchange.

On the other hand, domestic institutional investors continued their buying spree and remained net buyers for the 20th staright day. As per NSE, they bought equities worth Rs 350.57 crore.

Institutions net bought Rs 14,398.8 crore worth of equities in December so far, and net sold Rs 1,053 crore worth of Indian equities in 2022.

The yield on the 10-year bond closed lower by 2 bps on Tuesday at 7.32%. It closed at 7.34 on Monday.

Source: Bloomberg

The local currency closed at 82.89 on Tuesday, depreciating 14 paise from Monday's close.

It closed at 82.75 on Monday.

Source: Bloomberg

The Indian benchmark indices traded flat through Tuesday and recouped losses in the last half of the day, extending gains for second-straight day in the new year.

The S&P BSE Sensex was up by 126 points or 0.21% at 61,294.20 while the NSE Nifty 50 was 35 points or 0.19% higher at 18,232.55.

HDFC Life Insurance Co., SBI Life Insurance Co., Axis Bank Ltd., JSW Steel Ltd., TCS Ltd. were the top gainers amongst the NSE Nifty 50 constituents.

Whereas, Hindalco Industries Ltd., Britannia Industries Ltd., JSW Steel Ltd., Mahindra and Mahindra Ltd. and Reliance Industries Ltd. were the top losers in the gauge.

The broader market indices were trading higher; S&P BSE MidCap was up by 0.22%, whereas S&P BSE SmallCap was higher by 0.18%.

Fifteen out of the 19 sectoral indices compiled by BSE advanced, while four declined.

The market breadth was skewed in favour of the bulls. About 2,045 rose, 1,480 declined, and 140 remained unchanged on the BSE.

• Exicom has signed agreement to supply battery management systems (BMS) to Hero Electric's two-wheelers in India.

• It will provide Hero Electric with intelligent BMS built around innovative technologies, multi-level safety checks and advanced features.

• BMS will allow Hero Electric to comply with AIS-156 safety norms.

• Hero Electric intends to buy 5 lakh units of Exicom BMS per annum.

Source: Press release

Shares of insurance companies rose in trade on Tuesday.

LIC India, HDFC Life Insurance Co., SBI Life Insurance Co. and ICICI Prudentuial Life Insurance Co.rose in trade.

Source: NSE

• The order entails design, manufacture, supply, installation, supervision of testing and commissioning at Noida DC from AdaniConnex Pvt.

• The delivery of the said goods shall be made over a period of six months.

Source: Exchange filing

Shares of Kamat Hotels India Ltd. rose 4.10% in trade on Tuesday as the board approve sale of the Mumbai unit of the Company- VITS.

The sale of the unit would not be less than Rs 125 crore. The stock trades at 1.9 times its 30-day average volume.

Source: Bloomberg, Exchange filing

• SBI board approves raising infrastructure bonds up to an amount of Rs 10,000 crore in FY23.

• Fundraise of Rs 10,000 crore will be done via public issue or private placement, the company said in the filing.

• The said amount will be raised in the current fiscal.

Source: Exchange filing

• IEX achieves 8,452 MU overall volume in December 2022, grows 9% month-on-month.

• Electricity volume at 7,964, grows 8% month-on-month and 4% year-on-year.

• Real time electricity market volume at 1,763 MU, higher 17% year-on-year.

• Overall volume at 24.2 BU in Q3FY2023, grows 5% quarter-on-quarter.

Source: Exchange filing

Shares of I.T. companies rose in trade on Tuesday. The NSE Nifty IT Index rose 0.74% in trade.

Out of the 10 stocks compiled by the gauge, nine advanced, while L&T technology Services Ltd. declined.

Mphasis Ltd., Coforge Ltd., TCD Ltd. and Tech Mahindra Ltd. rose in trade.

Source: NSE

• Adani Cement launches green concrete solution ‘ACC ECOMaxX’ in Mumbai with 30-50% lower embodied carbon content compared to standard OPC offering.

• The Mumbai Coastal Road Project has maximised its green impact with ACC ECOMaxX by saving 3,447 tonnes of CO2 emissions compared to conventional concrete.

Source: Exchange filing

The Indian benchmark indices erased their gains and traded flat on Tuesday.

As of 12:19 p.m. the S&P BSE Sensex was down by 31 points or 0.05% at 61,136.36 while the NSE Nifty 50 was 7 points or 0.04% higher at 18,190.70.

HDFC Life Insurance Co., SBI Life Insurance Co., TCS Ltd., Axis Bank Ltd. and Tech Mahindra Ltd. were the top gainers amongst the NSE Nifty 50 constituents.

Whereas, Britannia Industries Ltd., Maruti Suzuki India Ltd., ONGC Ltd., Reliance Industries Ltd., and Mahindra and Mahindra Ltd. were the top losers in the gauge.

The broader market indices were trading flat; S&P BSE MidCap was down by 0.09%, whereas S&P BSE SmallCap was lower by 0.01%.

Twelve out of the 19 sectoral indices compiled by BSE advanced, while seven declined.

The market breadth was skewed in favour of the bulls. About 1,850 rose, 1,540 declined, and 144 remained unchanged on the BSE.

Shares of Jindal Steel and Power rose 1.32% in trade on Monday and the scrip hit at 52-week high Rs 604.

Out of the the 26 analysts tracking the company, 17 maintain a 'buy' rating, three suggest 'sell' and six maintain a 'hold' on the stock. The 12-month consensus implies an upside of 44.9%.

Source: Bloomberg, Exchange filing

• BharatPe CEO Suhail Sameer has quit the organisation.

• Sameer to transition from CEO to Strategic Advisor effective Jan. 7.

• CFO Nalin Negi appointed interim CEO.

Source: Statement

The outstanding term loan stands at Rs 129.72 crore vis a vis Rs 259.64 crore as on March 31, 2022

The weighted average interest rate of the loans prepaid by the company was 8.30% per annum.

Source: Exchange filing

• Adani Enterprises will make an additional payment for NDTV shares acquired via the open offer.

• Adani will offer an extra Rs 48.65 per share over the Rs 294 it paid for NDTV shares in the open offer.

• This takes the cost per share to Rs 342.65, the same as the amount paid per share for the 27.6% stake acquired from promoter couple Roys.

• Additional payment to be made by February 28.

Source: Exchange filing

• Bank of Maharashtra's loans rise 21.8% YoY as of Dec. 31.

• Company's deposits rose 11.7% YoY in the third quarter of the fiscal.

• CASA deposits rose by 6.52% in the same period.

Source: Exchange filing

Shares of Zomato fell as Gunjan Patidar, co-founder and chief technology officer of the company, resigned due to undisclosed reasons.

The stock was down 2.07% in trade on Tuesday. It fell as much as 4.98% the most since Dec. 23.

Total traded volume stood at 0.9 times the 30-day average.

Out of the the 26 analysts tracking the company, 18 maintain a 'buy' rating, four suggest 'sell' and four maintain a 'hold' on the stock. The 12-month consensus implies an upside of 44.9%.

Source: Bloomberg, Exchange filing

• L&T has won repeat orders from the government of Madhya Pradesh to execute two lift irrigation projects.

• L&T classifies ‘major’ orders as those worth between Rs 5,000 crore and Rs 7,000 crore.

Source: Exchange filing

Shares of Granules India rose 1.56% as it signed an agreement with Greenko ZeroC to develop green pharma zones for Rs 2,000 crore in 5 years.

Green pharma zones are greenfield facilities based on sustainability principles for large-scale manufacturing of key starting materials, intermediates, APIs and fermentation based products.

The facility spread across 100 acres, will be commissioned in a phase wise manner.

Source: Exchange filing

Shares of Power Finance Corp rose 4.71% in trade on Tuesday as 1.21 million shares changed hands in a bunched trade.

Total traded volume stood at 6.9 times the 30-day average.

All the six analysts tracking the stock maintain a 'buy'. The 12-month consensus implies an upside of 11.1%.

Source: Bloomberg

The shares of Piramal Pharma Ltd. gained after Jefferies initiated coverage on the stock with a 'buy' rating and price target of Rs 150. This implies an upside of 29%.

The stock gained as much as 3.35% during early trade. As of 9:47 a.m., the scrip had risen 2.57% as compare with a flattish gain in benchmark Nifty 50.

Total traded volume stood at 4.9 times the 30-day average.

All the four analysts tracking the stock maintain a 'buy'. The 12-month consensus implies an upside of 47.8%. The relative strength index is 46.

Source: Bloomberg, brokerage report

Total deposits crossed Rs 2 lakh crore milestone, with a growth of 14.8% YoY during Q3.

Customer deposits aggregated to Rs 1.92 lakh crore, a growth of 12.8% YoY in the October-December quarter.

Source: Exchange filing

Shares of the banking companies rose in trade on Tuesday. The Nifty Bank Index rose 0.32%. All twelve stocks compiled by the gauge advanced.

Punjab National bank, Bank of Baroda, Federal bank Ltd., Axis Bank Ltd. rose the most among peers.

Source: Bloomberg

Shares of South Indian Bank rose 8.31% in trade on Tuesday after it released company updates on exchanges stating that its gross advances increased 18% to Rs 70,168 crore in October-December quarter.

CASA increased 9% on-year to Rs 30,699 and the CASA ratio improved 189 basis points to 33.8%.

The stock gained as much as 10.13%, the most since Dec. 27, 2022. It was trading at 3.8 times its 30-day average trading volume.

Out of the seven analysts tracking the company, three maintain a 'buy' rating, three suggest 'hold' and one recommends a 'sell' on the stock.

Source: Bloomberg, Exchange filing

The Indian benchmark indices opened largely flat on Tuesday after closing with gains of more than half a percent on Monday.

The S&P BSE Sensex was down by 92 points or 0.15% at 61,074.88 while the NSE Nifty 50 was 34 points or 0.19% lower at 18,163.20.

Axis Bank Ltd., HDFC Life Insurance Co., SBI Ltd., UPL Ltd. and Kotak Mahindra Bank Ltd. were the top gainers amongst the NSE Nifty 50 constituents.

Whereas, SBI Life Insurance Co., ONGC Ltd., Hindustan Unilever Ltd., Sun Pharmaceuticals Industries Ltd., and Britannia Industries Ltd. were the top losers in the gauge.

The broader market indices outperformed their larger peers; S&P BSE MidCap was up by 0.19%, whereas S&P BSE SmallCap was higher by 0.37%.

Fourteen out of the 19 sectoral indices compiled by BSE advanced, while five declined.

The market breadth was skewed in favour of the bulls. About 1,803 rose, 809 declined, and 113 remained unchanged on the BSE.

The local currency opened at 82.71 on Tuesday, appreciating 4 paise from last close.

It closed at 82.76 on Monday.

Source: Bloomberg

The yield on the 10-year bond opened flat on Tuesday at 7.34%.

Source: Bloomberg

• Granules has signed an agreement with Greenko ZeroC to develop green pharma zones for Rs 2,000 crore in 5 years.

• Green pharma zones are greenfield facilities based on sustainability principles for large-scale manufacturing of key starting materials, intermediates, APIs and fermentation based products.

• The facility spread across 100 acres, will be commissioned in a phase wise manner.

Source: Exchange filing

• U.S. Dollar Index at 103.52

• U.S. 10-year bond yield at 3.87% on Friday

• Brent crude at $85.91 per barrel

• Nymex crude at $80.43 per barrel

• SGX Nifty down 0.20% to 18,186.5 as of 8:10 a.m.

• Bitcoin down 0.42% to $16,680

• Sah Polymers: The IPO was subscribed 2.37% on its second day, with most demand coming from retail investors. The retail portion was subscribed 7.46 times. Meanwhile, the QIB portion was subscribed 39%, whereas the HNI portion was subscribed 2.94 times.

• Zee Entertainment Enterprises: The company will contest the insolvency plea by operational creditor Indian Performing Right Society over claims of Rs 211.4 crore.

• Zomato: Gunjan Patidar, co-founder and chief technology officer of the company, resigned due to undisclosed reasons.

• Maruti Suzuki: The production volumes of the company in December declined almost 18% y-o-y to 1.25 lakh units in December.

• SBI/ICICI Bank/HDFC Bank: The Reserve Bank of India marks these three banks in its list of domestic systematically important banks.

• Dabur India: The company completed the acquisition of 51% shareholding of Badshah Masala pursuant to the share purchase agreement and shareholders agreement with the latter’s promoters and shareholders.

• ONGC: The company’s Sagar Samrat offshore drilling rig, which has been commissioned as a mobile offshore production unit, started oil and gas production in the Arabian Sea.

• HFCL: The company and its subsidiary HTL have received an order worth Rs 95.4 crore from Reliance Projects & Property Management Services for the supply of optical fiber cables.

• Birlasoft: Chandrasekar Thyagarajan, chief financial officer of the company, has resigned due to personal reasons, effective Feb. 2.

• PSP Projects: The company has won the bidding process for the construction of high-rise office building for Surat Municipal Corporation for Rs 1,364.5 crore.

• MOIL: The company registered 18% sequential increase in production at 1.41 lakh ton, and 91% rise in sales at 1.64 lakh ton in December 2022.

• L&T Technology Services: The board will meet on Jan. 19 to consider and approve the financial results for the quarter ended December 2022.

• Angel One: The board will meet on Jan. 16 to consider and approve financial results for three months to Dec. 31, 2022 and the third interim dividend for the current fiscal.

• Hindustan Zinc: Business Updates For Quarter Ended Dec. 31, 2022 (Y-o-Y)

  • Gross advances increased 18% to Rs 70,168 crore.

  • The mined metal quantity increased 1% to 2.54 lakh ton.

  • Wind power production decreased 15% to 50 million units.

• South Indian Bank: Business Updates For Quarter Ended Dec. 31, 2022 (Y-o-Y)

  • Gross advances increased 18% to Rs 70,168 crore.

  • CASA increased 9% on-year to Rs 30,699.

  • CASA ratio improved 189 basis points to 33.8%.

• Karnataka Bank: Business Updates For Quarter Ended Dec. 31, 2022 (Y-o-Y)

  • Gross advances increased 12.5% to Rs 63,658.6 crore.

  • CASA increased 9.5% to 26,991.7 crore.

• Indian Bank: The bank increased lending rates by up to 25 basis points, effective Jan. 3.

• Ashapura Minechem: The board approved issue upto 40,40,000 warrants to the promoter group members viz. Manan Shah and Ashapura Industrial Finance, on preferential basis.

• Likhitha Infra: Company received orders worth Rs 120 crore from various oil and gas distribution companies during the October-December quarter.

• Mahindra & Mahindra Financial Services Updates For Quarter Ended Dec. 31, 2022 (Y-o-Y)

  • Disbursement growth of 22% QoQ.

  • Business assets rose 20% YoY to Rs 77,000 crore, a tad softer than Jefferies estimates.

  • Collection efficiency was stable year-on-year at 95%.

  • Asset quality usually seasonally improves in Q3 as per Jefferies.

• CSB Bank Updates For Quarter Ended Dec. 31, 2022 (Y-o-Y)

  • Advances grew 5.6% QoQ & 26% YoY to Rs. 18,643 crore

  • Gold advances grew 9% QoQ & 51% YoY to Rs. 8,772 crore

  • Gold mix now at 47% vs YoY 39%

  • Non Gold advances grew 2% QoQ & 10% YoY to Rs. 9,871 core

  • Deposits grew 8% QoQ & 19% YoY

  • CASA came at 31.4% vs QoQ 34.3% & YoY 34.6%

• Safari Industries (India) Co: Unit commenced additional commercial production and manufacturing of luggage at Halol factory, Gujarat.

The U.S. and European equity futures fell, and shares across Asia dropped on Tuesday, a sign that further pain lies ahead after global stocks tumbled by a fifth last year.

At 8:10 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, fell 0.20% to 18,186.5.

After opening flat, the domestic indices Sensex and Nifty inched up to close with marginal gains on the first trading session of the year.

The rupee had a poor start to the year as it closed marginally lower against the U.S. dollar amid a surge in crude prices and continuous foreign fund outflows.

Overseas investors began the year by net selling stocks worth Rs 211 crore on Monday. This was the seventh session of foreign outflows. Foreign portfolio investors offloaded equities worth Rs 212.57 crore, while domestic institutional investors bought equities worth Rs 743.35 crore, according to NSE.