Market LIVE Updates: Sensex jumps 500 pts; Nifty above 17950; auto, banks rally

Stock Market Live Update: Indian markets opened higher on Monday with Sensex and Nifty topping crucial levels. ICICI Bank, TCS and Kotak Bank were among major gainers while Wipro and Asian Paints were the biggest laggards

Indian stock markets were firm on Monday with Sensex topping the 60K mark. Nifty was steadily marching towards the 18,000 level. ICICI Bank, TCS, Infosys powered the rally in the index. Banks, financials and auto stocks were the show-stoppers in trade today 

Gold likely to perform better after lacklustre 2021: ICICI Securities

The year 2022 is likely to witness the start of the rate tightening cycle in U.S. In preceding interest rate hike cycles, gold has performed well as it marks higher inflation, an improving economic cycle and ample liquidity.

The euphoria surrounding crypto currencies if subside, may result in liquidity flowing back to traditional asset classes like precious metals.

DLF launches luxury housing project in Delhi; starting price ₹3 cr/unit

Realty major DLF on Friday launched its luxury housing project, comprising 913 units, in the national capital with a starting price of ₹3 crore. DLF is developing this project in partnership with Singapore sovereign wealth fund GIC.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

“17950 is a stiff resistance for the Nifty and if we can close above this level, the index can go up to 18500. The overall market trend is positive and intraday corrections can be utilized to accumulate long positions. 17700 is the revised support for this week.”

Avenue Supermarts down 1.7% even as profit up

Radhakishan Damani-promoted retail chain Avenue Supermarts’ (DMart) profit rose by 24.6% to ₹586 crore during October-December. Total revenue for the quarter ended December stood at ₹9,065 crore, as compared to ₹7,433 crore in the same period last year.

Gold prices slip to 2-month low

Gold and silver struggled in Indian markets today, extending recent losses in the precious metals. Gold futures fell 0.16% to two-month lows of ₹47,375 per 10 gram on MCX while silver futures dropped 0.31% to ₹60,420 per kg. In Friday’s session, gold had ended flat while silver rose 0.4%

Sobha Ltd stock up around 4% on robust Q3FY22 performance

Shares of Bengaluru-based real estate developer Sobha Ltd rose around 4% on the National Stock Exchange in opening deals on Monday after the company reported robust sales performance for the December quarter. In its operational update, the company said that including its share in joint development projects, it has achieved sales volume of 1.32 million square feet (msf), up 17% year-on-year (y-o-y) with sales value at ₹1,048 crore, up 18% y-o-y. Sequentially, however, sales dropped a marginal 2%. Average realisations on a per square feet basis rose 4% sequentially, but was flat compared to Q3FY21.

Omicron update: Tally crosses 4,000-mark; Maharashtra, Rajasthan, Delhi worst hit

India on Monday reported 410 new cases of Omicron variant, taking the overall caseload to 4,033. Of the total Omicron cases in India, 1,552 patients have been discharged. Maharashtra accounts for the highest number of Omicron cases in the country (1,216)

India logged 1,79,723 fresh Covid-19 cases on Monday, the most since late May, while the active cases increased to 7,23,619, according to the govt data updated at 8 am.

TCS up more than 1%

India’s largest IT firm said its Board will consider a buyback proposal on 12 January. The Board of the Mumbai-based company is scheduled to meet on 12 January to approve and take on record the financial results of the company for the third quarter.

ICICI Securities report on BFSI Q3FY22 preview: Growth gathering pace; stress to subside

The third quarter of FY22 will be characterised by growth gathering pace and uptick in collections with recovery in business activities. Leading financiers have reported 3-8% QoQ loan growth and YoY growth, too, has gained traction. With lower slippages and improving collections/recoveries, we expect improvement in the overall stress pool and credit cost for banks. Behaviour of ECLGS lending pool and restructured portfolio would be key to watch out. For NBFCs/HFCs, the RBI’s notification relating to harmonisation of IRACP norms would likely result in an uptick in GNPAs. However, excess provisioning under ECL framework over IRACP norms is likely to limit rise in credit cost. HFCs are now required to implement minimum 50% LCR, the drag may weigh on their NIMs. For Q3FY22, we estimate 9% YoY growth in NII for banks, 2-4% operating profit growth while subsiding credit cost is expected to support >35% earnings growth.

Preferences and recommendations:

Growth momentum is gaining traction for HDFC Bank, Kotak, Federal and stress is being managed well by SBI, Axis Bank, thereby, improving visibility on earnings trajectory. We stay with them as our preferred picks. Amongst non-banks, we prefer Aditya Birla Capital, HDFC, Chola and CreditAccess Grameen.

KEC International bags new orders worth ₹1,025 cr

Engineering, procurement and construction major KEC International on Friday said it has bagged new orders worth ₹1,025 crore across its various businesses.

The company’s transmission and distribution business has secured orders for projects in India and the Middle East, the RPG Group firm said in a filing to the BSE.

FMCG firms raise supply to meet rise in demand

Packaged consumer goods firms witnessed an increase in demand in the past two weeks as consumers stocked up in the wake of rise in covid-19 cases across the country, and have ramped up supplies to their stockists to avoid supply shortage.

Companies such as Parle Products Pvt. Ltd, Dabur Ltd, and ITC Ltd, which are already facing inflationary pressures on inputs, are keeping extra stock of raw materials to avoid any disruptions in the supply chain due to the fresh wave of the pandemic, putting in use their learnings from the past two waves. 

DMart profit rises 24.6% to ₹586 crore in Q3

Radhakishan Damani-promoted retail chain Avenue Supermarts’ (DMart) profit rose by 24.6% to ₹586 crore during October-December. Total revenue for the quarter ended December stood at ₹9,065 crore, as compared to ₹7,433 crore in the same period last year.

Telecom firms not looking to convert govt dues into equity

Bharti Airtel Ltd and Vodafone Idea Ltd are unlikely to opt for converting interest on deferred spectrum and adjusted gross revenue (AGR) dues into equity, because of improved finances, a senior government official told Mint.

“I think nobody’s looking at exercising that option at this point. Industry itself is now feeling much more comfortable and confident of starting the next investment cycle,” the official said, asking not to be named. The telecom sector’s health was on the upswing with an increase in tariffs and liquidity emanating from the government’s reform package, the official added.

Oil steadies as supply interruptions fade

Oil steadied after recording the biggest weekly gain in a month as supplies returned in Libya and Kazakhstan, and investors tracked China’s handling of its first community spread of omicron.

Brent crude was little changed after rising more than 5% last week to $83 a barrel, the highest since late November.

Economy poised to grow at 9.2% in FY22

Indian economy may grow at 9.2% in the year to 31 March, powered by agriculture, manufacturing, mining and construction, the government’s statistics office said, rebounding from a 7.3% contraction in the previous year.

In its first advance estimate of national income for 2021-22 released on Friday, the National Statistical Office (NSO) estimated India’s real GDP in the current fiscal year at ₹147.54 trillion, against the provisional estimate of ₹135.13 trillion in the previous fiscal.

Q3 may be skewed despite festive push

The economic recovery and festive sales are expected to power healthy corporate earnings in the December quarter, even as a broad-based recovery remains elusive. Analysts said that sectors such as metals, oil and gas, banking, financial services and insurance (BFSI), and IT would drive the earnings momentum in the fiscal third quarter, while staples and automobiles may lag.

SGX Nifty indicates higher opening for Indian stocks

Hang Seng opened marginally higher, while Japanese markets are shut on account of a holiday.

Wall Street on Friday wrapped up the first week of the new year with daily and weekly losses as investors worried about looming U.S. interest-rate hikes and unfolding Omicron news.

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