Stock Market Today: Sensex, Nifty End With Marginal Losses Amid Volatility; FPIs Remain Net Sellers
The S&P BSE Sensex was down 10 points or 0.02% at 60,105.50 while the NSE Nifty 50 was 19 points or 0.1% lower at 17,895.70.
KEY HIGHLIGHTS
FPIs Remain Net Sellers
Overseas investors in Indian equities were net sellers for the 14th day in a row on Wednesday.
Foreign portfolio investors offloaded stocks worth Rs 3,208.15 crore, according to data from the National Stock Exchange.
Domestic institutional investors remained net buyers for the fourth straight day and mopped up stocks worth Rs 2,430.62 crore, after snapping out of a 21-day buying streak on Thursday.
Foreign institutions net bought Rs 14,398.8 crore worth of Indian equities in December 2022, but have remained net sellers of Rs 13,334.06 crore of Indian stocks so far in 2023.
Yield On The 10-Year Bond Declines
The yield on the 10-year bond closed lower at 7.29% on Wednesday. It closed at 7.31% on Tuesday.
Source: Bloomberg
Rupee Strengthens Against The U.S. Dollar
The local currency closed 21 paise higher at 81.58 on Wednesday. It closed at 81.79 on Tuesday.
Source: Bloomberg
Closing Bell
The Indian benchmark indices traded largely flat through Wednesday and ended marginally lower in trade.
European markets had a sluggish start and were trading largely flat as well in trade on Wednesday.
The S&P BSE Sensex closed down by 10 points or 0.02% at 60,105.50 while the NSE Nifty 50 was 19 points or 0.1% lower at 17,895.70.
Hindalco Industries Ltd., Sun Pharmaceutical Industries Ltd., Ultratech Cement Ltd., BPCL Ltd. and HDFC Bank Ltd. were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, Bharti Airtel Ltd., Cipla Ltd., Divi's Laboratories Ltd., Apollo Hospitals Enterprise Ltd. and Coal India Ltd. were the top losers in the gauge.
The broader market indices were mixed; S&P BSE MidCap was down 0.27%, whereas S&P BSE SmallCap was higher at 0.02%.
Twelve out of the 19 sectoral indices compiled by the BSE declined, while seven advanced.
The market breadth was skewed in favour of the bulls. About 1,866 rose, 1,627 declined, 148 remained unchanged on the BSE.
FMCG Stocks Decline
Shares of fast moving consumer goods companies declined in trade on Wednesday. The NSE Nifty FMCG Index was 1.06% down.
Eleven out of the 15 constituents compiled by NSE Nifty FMCG Index declined while only four advanced.
Varun Beverages Ltd., Marico Ltd., Hindustan Unilever Ltd., Nestle India Ltd., Godrej Consumer Product Ltd. and Tata Consumer Products Ltd. declined more than 1% in trade.
Source: NSE
Cipla Declines In Trade
Shares of Cipla Ltd. fell 3.13% on Wednesday. It declined as much as 3.31% at open the most since June 30, 2022.
Total traded volume stood at 1.6 times its 30-day average.
Out of the 42 analysts tracking the company, 30 maintain a 'buy' rating, nine suggest to 'hold' and three recommend to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 16.2% over the next 12 months.
Source: Bloomberg
Howard Marks On Debt Investing, Fed Rate Hikes | The World View
European Markets Open Largely Flat
Indian Oil Corp Advances In Trade
Shares of Indian Oil Corp Ltd. rose 3.91% on Wednesday. It gained as much as 4.09%, the most since Nov. 28, 2022.
Total traded volume stood at 3.3 times its 30-day average.
Out of the 37 analysts tracking the company, 25 maintain a 'buy' rating, seven suggest to 'hold' and five recommend to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 1.2% over the next 12 months.
Source: Bloomberg
Rail Vikas Nigam Wins Rs 1,134-Crore Order For Chennai Metro
Rail Vikas Nigam Ltd. receives letter of acceptance for the construction of elevated 10 km viaduct and nine elevated metro stations in Chennai.
Shares of Rail Vikas Nigam Ltd. rose 2.63% on Wednesday. Total traded volume stood at 0.3 times its 30-day average.
The two analysts tracking the company maintain a 'buy' rating on the stock.
The return potential as calculated by the consensus of analyst estimates stand at an downside of 41.1% over the next 12 months.
Source: Bloomberg, Exchange filing
Midday Market Update
The Indian benchmark indices traded largely flat through midday, on Wednesday after a day of sell-off on Tuesday.
Strong global cues backed by no indication from Fed chair Jerome Powell on rate hikes, led the Asian markets higher in trade on Wednesday.
As of 12:05 pm, the S&P BSE Sensex was up 60 points or 0.1% at 60,175.04 while the NSE Nifty 50 was 2 points or 0.01% higher at 17,916.55.
BPCL Ltd., Hindalco Industries Ltd., HDFC Bank Ltd., TCS Ltd. and JSW Steel Ltd. were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, Bharti Airtel Ltd., Cipla Ltd., Apollo Hospitals Enterprise Ltd., Hindustan Unilever Ltd. and Eicher Motors Co. were the top losers in the gauge.
The broader market indices were mixed; S&P BSE MidCap was down 0.25%, whereas S&P BSE SmallCap was higher at 0.27%.
Ten out of the 20 sectoral indices compiled by the BSE declined, while the other ten advanced.
The market breadth was skewed in favour of the bulls. About 1,924 rose, 1,369 declined, 164 remained unchanged on the BSE.
Piramal Pharma Receives U.S. FDA Form-483, Six Observations For Lexington Facility
Piramal Pharma Ltd. receives U.S. FDA form-483 with six observations for its Lexington facility in Kentucky, U.S.A.
The observations are classified under ‘voluntary action indicated’ and are not related to data integrity.
Company plans to respond to the body within the stipulated timeline.
Source: Exchange filing
Oil India Advances In Trade
Shares of Oil India Ltd. rose 5.05% on Wednesday. It gained as much as 5.07%, the most in over five months since Aug. 5, 2022.
Total traded volume stood at 3.7 times its 30-day average.
Out of the 20 analysts tracking the company, 15 maintain a 'buy' rating, two suggest to 'hold' and three recommend to 'sell' the stock.
The return poential as calculated by the consensus of analyst estimates stand at an upside of 11.1% over the next 12 months.
Source: Bloomberg
HCL Technologies Up Ahead Of December Quarter Earning Results
Shares of HCL Technologies Ltd. rose 0.51% on Wednesday ahead of the announcement of December quarter earnings.
Out of the 47 analysts tracking the company, 31 maintain a 'buy' rating, 13 suggest to 'hold' and three recommend to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates stand at an upside of 5% over the next 12 months.
Source: Bloomberg, Exchange filing
Sun Pharma Rises After Breast Cancer Drug Launch
Sun Pharmaceutical Industries Ltd. launches Palbociclib, a novel targeted therapy for advanced breast cancer.
Palbociclib helps delaying disease progression when co-administered with hormonal therapies.
Shares of Sun Pharmaceutical Industries Ltd. 1.30% on Wednesday.
Out of the 45 analysts tracking the company, 41 maintain a 'buy' rating, three suggest to 'hold' and one recommends to 'sell' the stock.
The return poential as calculated by the consensus of analyst estimates stand at an upside of 12.4% over the next 12 months.
Source: Bloomberg, Exchange filing
Sugar Stocks Rise
Shares of Sugar companies advanced in trade on Wednesday.
Shree Renuka Sugars Ltd. rose 4.18% in trade on Wednesday after the company’s board announced that they will meet on Jan. 27 to consider and approve change in terms of its non‐convertible debentures.
Whereas, Uttam Sugar Mills Ltd rose 4.18% after the company’s board approved increasing daily capacity of its ethanol distillery in Barkatpur by 100 kilolitres to 250 kilolitres with a capex of Rs 56 crore.
Other sugar stocks like, Dalmia Sugar Ltd., Bajaj Hindusthan Sugars Ltd., Dhampur Sugar Ltd., Avadh Sugar Ltd. also rose by more than 2% in trade.
Source: Bloomberg, Exchange filing
Tata Motors Rises After EV Unit Acquires Ford's Manufacturing Plant
Shares of Tata Motors Ltd, rose 1.08% after the company’s subsidiary Tata Passenger Electric Mobility completed the acquisition of Ford India’s Sanand-based manufacturing plant.
Total traded volume stood at 2.4 times its 30-day average.
Out of the 33 analysts tracking the company, 24 maintain a 'buy' rating, six suggest to 'hold' and three recommend to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates stand at an upside of 19.4% over the next 12 months.
Source: Bloomberg, Exchange filing
JPMorgan Downgrades Bharti Airtel To 'Underweight'
Shares of Bharti Airtel fell 3.56% on Wednesday after JPMorgan cut the company's rating to 'underweight'.
Total traded volume stood at 10.1 times its 30-day average.
Out of the 34 analysts tracking the company, 27 maintain a 'buy' rating, three suggest to 'hold' and four recommend to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates stand at an upside of 20.2% over the next 12 months.
Source: Bloomberg, Exchange filing
NPCI Allows Non-Resident Bank Accounts With International Numbers To Be On-Boarded On UPI
Non-resident users in 10 countries to be allowed for onboarding on UPI for now.
Anti-money laundering and terrorism financing checks to be the responsibility of remitter and beneficiary banks.
Member banks should comply with requirements by April 30.
Source: NPCI circular
Opening Bell
The Indian benchmark indices opened largely flat on Wednesday after a day of sell-off on Tuesday.
Strong global cues backed by no indication from Fed chair Jerome Powell on rate hikes, led th Asian markets higher in trade on Tuesday.
The S&P BSE Sensex opened higher by 19 points or 0.03% at 60,134.56 while the NSE Nifty 50 was 10 points or 0.06% higher at 17,924.25.
Hindalco Industries Ltd., JSW Steel Ltd., Tata Motors Ltd., Tata Steel Ltd. and Infosys Ltd. were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, Bharti Airtel Co., HDFC Ltd., Hindustan Unilever Ltd., Cipla Ltd. and Divi's Laboratories Co. were the top losers in the gauge.
The broader market indices were mixed; S&P BSE MidCap was down 0.24%, whereas S&P BSE SmallCap was higher at 0.08%.
Fourteen out of the 20 sectoral indices compiled by the BSE declined, while six advanced.
The market breadth was skewed in favour of the bulls. About 1,503 rose, 887 declined, 140 remained unchanged on the BSE.
Yield On The 10-Year Bond Largely Flat
The yield on the 10-year bond opened largely flat at 7.32% on Wednesday. It closed at 7.31% on Tuesday.
Source: Bloomberg
Rupee Strengthens Against The Greenback
The local currency appreciated marginally by 2 paise at 81.77 on Wednesday at open. It closed at 81.79 on Tuesday.
Source: Bloomberg
Reliance Capital Insolvency: Creditors' Committee Decides To Extend First Round Of Auction
CoC agrees to allow all the eligible bidders in the first round to participate in the auction mechanism.
Eligible bidders in the first round included Piramal Capital and Cosmea Financial; Torrent Group; Hinduja Group; and Oaktree Capital.
CoC to seek extension of IBC deadline from Jan 31.
Source: Two people involved in the matter
Autos & Metals Remain Preferred Picks | Trade Setup For Wenesday
Global Cues
U.S. Dollar Index at 103.23
U.S. 10-year bond yield at 3.61% on Tuesday
Brent crude up 0.8% to $79.46 per barrel
Nymex crude at $74.50 per barrel
SGX Nifty up 0.16% to 18,014 as of 8:10 a.m.
Bitcoin down 0.23% to $17,426.68
Bulk Deals
Rama Steel Tubes: Nomura Singapore sold 5 lakh (0.11%) at Rs 42.8 apiece.
Jindal Stainless: To meet investors and analysts on Jan. 11.
Xpro India: To meet investors and analysts on Jan. 11.
Electronics Mart India: To meet investors and analysts on Jan. 11.
Stocks To Watch
Adani Ports and Special Economic Zone: The Adani-Gadot combine has completed the acquisition of Haifa port in, the finance ministry of Israel said in a statement.
Tata Motors: The company’s subsidiary Tata Passenger Electric Mobility completed the acquisition of Ford India’s Sanand-based manufacturing plant.
Bank of Baroda: The bank has hiked lending rates across tenors in the range of 20-35 basis points, with effect from Jan. 12.
Shree Renuka Sugars: The company’s board will meet on Jan. 27 to consider and approve change in terms of its non‐convertible debentures.
Uttam Sugar Mills: The company’s board approved increasing daily capacity of its ethanol distillery in Barkatpur by 100 kilolitres to 250 kilolitres with a capex of Rs 56 crore. The company will also send Rs 40 crore to increase its cane crushing capacity enhancement to 26,200 tonnes of cane per day.
Agarwal Industrial Corporation: Investor Ashish Kacholia increased his stake in the company to 3.82%.
Adani Wilmar: Business Updates for December Quarter (YoY)
- The company registered overall volume growth in high teens and value growth of high single-digit.
- Edible oil segment saw high-single digit volume growth, and low-single digit rise in value.
PC Jeweller: Business Updates for December Quarter (YoY)
- The company recorded 38% growth in domestic turnover at Rs 829.10 crore.
- It also opened a new franchisee showroom in Bihar.
SGX Nifty, Global Cues Indicate Firm Open For Indian Stocks
Asian shares advanced on Wednesday following Wall Street gains on Tuesday as traders bet that the upcoming U.S. consumer price index will show further softening.
U.S. stocks were waiting for a cue from Fed Chair Jerome Powell, who refrained from divulging the policy outlook on Tuesday. Stocks moved decidedly higher in afternoon New York trading, with the S&P 500 finishing above its key 3,900 mark.
At 8:10 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was up 0.16% to 18,014.
Domestic indices closed 1% lower on Tuesday as losses in telecom, financials, banking, and technology stocks weighed on the gauges.
Overseas investors in Indian equities were net sellers for the 13th day in a row on Tuesday. Foreign portfolio investors offloaded stocks worth Rs 2,109.34 crore, while domestic institutional investors mopped up stocks worth Rs 1,806.62 crore.
The rupee extended its rally against the U.S. dollar to close below the 82-mark for the first time since Dec. 6, 2022.
