Author: Sandeep Singh

Nifty50 makes it to fresh peaks after 13 months but is there more upside?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sensex and Nifty scale fresh record closing highs as the bulls remain in charge of D-Street for sixth day

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Nifty50 clocked a second back-to-back record closing high on Tuesday, boosted by gains in FMCG, healthcare and metal shares, shrugging off mixed moves in global equities as investors weighed nascent hopes that China could ease COVID-related restrictions following protests against optimism about a slowing pace of hikes in benchmark interest rates. Both headline indices gave up half of their intraday gains — owing to selling pressure in heavyweights such as the Bajaj twins, Maruti Suzuki and Larsen & Toubro — to settle 0.3 percent higher.

The Sensex rose 177 points for the day to a record closing high of 62,681.8, having gained as much as 382.6 points during the session. The Nifty50 broadly moved within a range of 18,550-18,700 in intraday trade before ending at 18,618.1. Both main indices rose for the sixth session in a row.

Broad indices underperformed the overall market, with the Nifty Midcap 100 and the Nifty Smallcap 100 falling around half a percent each.

A total of 22 stocks in the Nifty50 universe finished higher, with Hindustan Unilever, JSW Steel, Cipla, Hero MotoCorp and Sun Pharma being the top gainers.

Britannia, Nestle, Dr Reddy’s, Tata Steel and Hindalco — finishing around 1-1.5 percent higher — were also among the blue-chip stocks that gained the most.

On the other hand, IndusInd, Coal India, Bajaj Finance, Bajaj Finserv, Eicher, PowerGrid, Maruti Suzuki and UPL — declining between 0.7 percent and 1.5 percent — were the top laggards.

“The ongoing domestic rally is supported by falling crude oil and commodity prices, which are uplifting the corporate earnings outlook. However, there are concerns about the market’s medium-term performance due to supreme valuations,” said Vinod Nair, Head of Research at Geojit Financial Services.

“Falling raw material costs, better GDP growth and lower inflation are helping the market sustain the current outperformance,” he said.

Official data India’s gross domestic product in the July-September period is due on Wednesday.

Overall market breadth favoured the bulls at the close, as 1,663 stocks rose and 1,823 fell on BSE.

The rupee ended nearly unchanged at 81.72 against the US dollar.

Global markets

European markets gave up initial gains amid choppy trade in early hours, in stark contrast to a strong session across much of their Asian peers, with the Stoxx 600 index quoting down 0.2 percent at the last count.

S&P 500 futures were up 0.2 percent, suggesting a mildly positive start ahead on Wall Street.

Catch latest market updates with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

As Nifty Bank scales another record high, here’s what to expect from the sector in the near term

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Nifty Bank  — whose 12 members include the country’s largest lenders SBI, HDFC Bank, Kotak Mahindra Bank, ICICI Bank and Axis Bank — touched a fresh record high on Tuesday, powering a second straight session of record highs in the headline Nifty50 index. Financial services stocks have the maximum weightage in the benchmark index, at 37 percent.

The surge in the banking index comes amid expectations of stronger participation from the sector in rallies on Dalal Street following months of consolidation.

On Monday, the Nifty50, the Sensex and the Nifty Bank — the main Indian equity indices and the heavyweight banking gauge — scaled their highest ever intraday levels in a strong upmove.

Stocks of a number of big banks have thoroughly participated in the rally.

Analysts say intermittent foreign fund inflows, a sharp drop in crude oil prices and optimism on an easing pace of COVID-era hikes in benchmark interest rates continue to drive the gains in the Indian market.

However, many experts have warned of stock valuations reaching expensive territory and expressed concerns over the impact of protests in China against COVID-related restrictions on global demand.

Is there more steam left in the heavyweight Nifty Bank?

Many analysts have positive views on the entire banking space, betting on economic activity and robust credit growth.

“I expect the Union Budget to focus on more government capital expenditure due to bouncy in tax (GST) collections… This is the last full fledged Budget before the 2024 general election,” AK Prabhakar, Head of Research at IDBI Capital Markets, told CNBCTV18.com.

ALSO READ: As PSU banks rally, top fund manager describes what a ‘goldmine’ in the space should have

Several PSU banking stocks have outperformed their private sector peers on strong earnings and optimism on the country’s festive season, which goes on till the New Year starting Diwali.

Many analysts believe PSU banking valuations are more attractive compared to those of private lenders. Haitong last month initiated coverage on India’s PSU banking space, saying state-run banks are better placed owing to their gradually improving asset quality, relatively better balance sheets and higher coverage ratios.

Catch latest market updates with CNBCTV18.com’s blog

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Investors richer by Rs 6 lakh crore in six days as Sensex and Nifty50 scale fresh record highs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian equity benchmarks extended gains to fresh record highs on Tuesday, led by gains in financial, FMCG and metal shares, shrugging off mixed moves in world markets as concerns persisted about the potential impact of protests in China against COVID restrictions on global demand.

Both headline indices rose as much as 0.4 percent in the first few minutes of trade after a flat start. The Sensex gained 262.9 points to touch 62,767.7 at the strongest level of the day so far, and the Nifty50 climbed to as high as 18,643.3, up 80.5 points from its previous close.

The Nifty50, the Sensex and the Nifty Bank hit lifetime highs, as the bulls remained in charge of Dalal Street for the sixth day running.

Twenty five stocks in the Nifty50 basket began the day in the green, with Hindalco, Mahindra & Mahindra, Cipla, NTPC and ONGC being the top gainers.

Axis Bank, UPL, Britannia, Larsen & Toubro and Eicher Motors were also among the blue-chip stocks that rose the most.

ICICI Bank, Hindustan Unilever, HDFC, HDFC Bank, Axis Bank and Titan were the biggest boosts for both main indices.

On the other hand, Wipro, IndusInd Bank, HDFC Life, ICICI Bank, TCS, Nestle and SBI, down between 0.3 percent and 0.7 percent, were the top laggards.

At 10 am, the market capitalisation of BSE-listed companies stood at Rs 286.6 lakh crore, up by Rs 5.7 lakh crore since November 21, according to provisional exchange data.

“The Nifty50’s record high is indicative of underlying bullishness in the market. But the global market construct is not very favourable for the rally to continue unabated… High valuations in India is becoming a matter of concern. The troubles in China are a matter of concern but it is too early to judge its impact on the global economy,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Overall market breadth favoured the bulls in early deals, as 1,834 stocks rose and 1,465 fell on BSE.

“The fractious relationship of China with the US, the zero COVID, the fact that European economies have been hit with the energy issues post-Russia-Ukraine (war)… I think a lot of all of those reasons have also helped the relative positioning for India… It has clearly outperformed the North Asian markets,” Jitania Kandhari, Head-Macro Research for emerging markets at Morgan Stanley, told CNBC-TV18.

“If India continues to deliver and if oil stays within the $80-90 per bbl range, which we know is the Achilles heel of the Indian economy, India will attract interest back. It is definitely going to be measured because valuations in India relative to emerging markets are at a 95 percent-plus premium. The average premium historically has been 40-45 percent,” she added.

The rupee started the day stronger at 81.58 against the US dollar.

Global markets

Equities in other Asian markets bagged sharp gains on Tuesday, shrugging off overnight losses on Wall Street, with MSCI’s broadest index of Asia Pacific shares outside Japan quoting 1.6 percent higher at the last count. Japan’s Nikkei 225 was down 0.2 percent. China’s Shanghai Composite was up 1.9 percent.

S&P 500 futures were up 0.2 percent. The three main US indices finished around 1.5 percent lower on Monday.

Catch latest market updates with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Trade setup for Nov 29: Nifty50 scales a fresh peak and the bulls may just take it even higher soon

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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FII/DII activity

Foreign institutional investors (FIIs) continued to be net purchasers of Indian shares for a third straight trading day on Monday after four days of selling, according to provisional exchange data.

Dalal Street is on track to finish November with net foreign fund inflows — a first calendar month of inflows since August.

No stock from the basket hit a 52-week low.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nifty50 scales record high for first time in 13 months as the bulls stay in charge of D-Street for fifth straight day

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian equity benchmarks scaled record closing highs on Monday, continuing to rise for the fifth session in a row, led by gains in oil & gas and auto stocks, and select financial heavyweights such as ICICI Bank, Axis Bank and Bajaj Finance. The Nifty Bank — whose members include India’s top lenders such as SBI, HDFC Bank, Axis Bank, Kotak Mahindra Bank and Bajaj Finance — also clocked its highest ever close.

Globally, investors awaited a key speech from the Fed Chairman due this week for more clarity on the path of COVID-era benchmark interest rates.

Both headline indices closed 0.3 percent higher at record levels. The Sensex rose 211.2 points to end at 62,504.8, having hit a lifetime high of 62,701.4 during the session.

The Nifty50 settled at 18,562.8, up 50 points from its previous close, having touched a record high of 18,614.3 in intraday trade. The 50-scrip index took out a record high of  18,604.5, logged on October 19, 2021.

Twenty five stocks in the Nifty50 universe closed higher. Bharat Petroleum, Reliance, Hero MotoCorp, Tata Consumer, SBI Life, Asian Paints, Nestle, Bajaj Finserv, Britannia and Bajaj Auto — rising between 0.9 percent and five percent — were the top gainers.

Reliance, ICICI Bank and Asian Paints were the biggest boosts for both main gauges.

On the other hand, Hindalco, Apollo Hospitals, JSW Steel, Tata Steel, HDFC Bank, Grasim, Bharti Airtel, Infosys, HCL Tech and HDFC were the top laggards, falling between 0.9 percent and 2.1 percent.

Shares in state-run oil marketing companies Indian Oil, Bharat Petroleum and Hindustan Petroleum jumped 4-6 percent as international crude oil prices hit a 10-month low owing to protests in China against COVID-restrictions. India meets the lion’s share of its oil requirement through imports.

“The future course of global market will depend on (Fed Chairman Jerome) Powell’s speech on Wednesday, which is crucial in maintaining momentum, as the market seems to have factored in a moderation in the pace of rate hikes,” said Vinod Nair, Head of Research at Geojit Financial Services.

Overall market breadth favoured the bulls at the close, as 2,058 stocks rose and 1,555 fell on BSE.

Foreign institutional investors remained net buyers of Indian shares for a third straight day, according to provisional exchange data.

The rupee ended nearly unchanged at 81.67 against the US dollar.

Global markets

European markets began the day in the red, mirroring the trend across much of Asia. The pan-European Stoxx 600 index was last down one percent, retreating from three-month highs scaled in the previous session.

S&P 500 futures were down 0.7 percent, suggesting a negative start ahead on Wall Street.

Catch latest market updates with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SBI Card shares gain for 3rd straight day as credit card base rises by one fifth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”SBI Card” isinid=”INE018E01016″ bseid=”543066″ nseid=”SBICARD” sector=”” exchange=”nse”]

SBI Card extended gains to a third straight day on Monday, after data from the Reserve Bank of India showed the card issuer saw a 19 percent increase in cards in a month compared with the corresponding period a year ago. The SBI Card stock rose by as much as Rs 11.6 or 1.4 percent to Rs 818 apiece on BSE.

Monthly credit spending for SBI Card, however, saw a growth of 22 percent compared with the year-ago period, worse than the industry average of 28 percent, according to RBI data.

Morgan Stanley maintained an ‘overweight’ rating on the stock with a target price of Rs 1,100 — implying 36 percent upside from its closing price on Friday. SBI Card maintained its market share so far this year at 18 percent with strong card additions, the brokerage highlighted.

The monthly RBI report comes at a time when credit card spending has returned to normal levels more than two years into the pandemic. Separate RBI data showed total credit card outstanding for the industry increased 27.2 percent to Rs 1.7 lakh crore for the July-September period — the highest in four years.

Typically, the festival season in India — spanning from Diwali to the New Year — leads to higher discretionary spending by consumers in a boost for credit card providers.

Many experts are banking on sustained credit growth in the banking system owing to the festive season and pent-up demand has.

SBI Card shares have remained largely flat in the past one month — a period in which the Nifty50 benchmark has risen 4.4 percent. The 50-scrip index and the Sensex scaled record highs on Monday.

Catch latest market updates with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nifty50 scales record high. Here’s what led the last 2,000 points of the rally

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Nifty50 scaled a record high on Monday, close on the heels of the Sensex hitting a record high earlier in the day, boosted by gains in oil & gas, auto and IT shares. The 50-scrip headline index gained 101.5 points or 0.5 percent to touch a lifetime high of 18,614.3, surpassing its previous record high of 18,604.5. Earlier in the day, the Sensex hit a record high, crossing the 62,700 level in intraday trade for the first time ever.

Analysts say intermittent foreign fund inflows and optimism on a slower pace of hikes in COVID-era interest rates in major economies primarily drove the gains on Dalal Street.

Besides, falling crude oil prices — down almost 42 percent since a peak in March 2022 — also support the market in India — the world’s third largest consumer of crude oil, which relies heavily on imports to meet its oil requirement.

Here’s a list of top movers and shakers of the 50-strong basket since the last record high:

It took the benchmark index about four months to gain the last 2,000 points in its first successful move to surpass the record hit in October 2021.

“Strong domestic macros, robust earnings growth and a sharp correction in oil prices is a big positive for Indian equities. For the July-September 2022 period, Nifty companies grew nine percent against expectations of flattish growth… We expect the momentum to remain strong with expectation of a Nifty earnings CAGR of 17 percent over the next two years,” said Ajay Menon, Managing Director and CEO-Broking and Distribution at Motilal Oswal Financial Services.

“The festive season has witnessed buoyant demand, the first one without any restrictions post-COVID… Bank credit has continued to grow in late teens over last few months and is expected to continue this uptrend with a pickup in capex in the October-March period,” he said. 

Catch latest market updates with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dharmaj Crop Guard IPO to hit Street today — check out issue price, lot size and other key details

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Dharmaj Crop Guard — a Gujarat-based manufacturer of agro-chemicals — is set to launch an IPO on Monday to raise up to Rs 251 crore. The IPO will be a combination of fresh issuance of shares worth Rs 216 crore, and an offer for sale (OFS) worth Rs 35 crore by existing shareholders. Dharmaj Crop is engaged in making, distributing and marketing formulations such as insecticides, fungicides, herbicides, plant growth regulators, micro fertilisers and antibiotics to B2C and B2B customers.

Here are a few things to know about the Dharmaj Crop Guard IPO:

Important dates: Dharmaj Crop Guard shares will be available for bidding from 10 am to 5 pm for three days till December 30. Dharmaj Crop Guard will likely be listed on bourses BSE and NSE on December 8.

The basis of allotment of shares will likely be finalised on December 5.

Issue price: Potential investors will be able to bid for Dharmaj Crop Guard shares in a price band of Rs 216-237 under the IPO.

Lot size: Bidding will be available in multiples of 60 shares — translating to Rs 12,960-14,220 per lot.

Investor categories: At least 35 percent of the IPO is reserved for retail investors, 15 percent for non-institutional investors and up to 50 percent for qualified institutional investors (QIBs).

Financials: The company’s profit margin — or the degree to which a business makes money — improved to 7.28 percent in the year ended March 2022, from 6.93 percent the previous year, according to the red herring prospectus.

Should you subscribe to Dharmaj Crop Guard’s IPO?

A number of analysts suggest subscribing to the issue.

According to Anand Rathi, the IPO values the company at a price-to-earnings multiple of 27.9 times its earnings for the year ended March 2022, which is reasonably priced.

Catch latest market updates with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Trade setup for Nov 28: Nifty50 may build on momentum as the bulls take it past 18,500 decisively

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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He sees any minor correction in the index as an opportunity to add fresh longs.

Foreign institutional investors (FIIs) continued to be net purchasers of Indian shares on Friday after four days of selling, according to provisional exchange data.

52-week lows

On the other hand, four stocks hit 52-week lows: Aurobindo Pharma, Motilal Oswal Financial Services, Natco Pharma and Quess Corp.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow