Stock Market HIGHLIGHTS: Sensex ends 632 points lower, Nifty50 sinks below 17,950 dragged by IT, financial shares; TCS down 1%
Stock Market HIGHLIGHTS: Indian equity benchmarks S&P BSE Sensex and NSE Nifty50 finished around one per cent lower each on Tuesday dragged by financial and IT shares, though gains in auto stocks lent some support. TCS shares succumbed to negative territory a day after Indias largest IT company reported a mixed set of quarterly financial results.
Stock Market HIGHLIGHTS: Indian equity benchmarks Sensex and Nifty50 fell around one per cent each on Tuesday amid selling pressure in financial and IT shares. Heavyweights such as TCS -- which reported its quarterly results the previous day, HDFC Bank, Infosys and Reliance were the top drags on headline indices. Gains in spaces such as auto helped Sensex and Nifty50 avoid deeper losses.
Here are 10 key things to know about the January 10 session:
1) Both headline indices reversed initial gains soon after a positive start and stayed under pressure throughout the session. The Sensex lost 631.8 points to end at 60,115.5 and the Nifty50 settled at 17,914.2, having shed 187.1 points for the day. The main indices fell as much as 1.4 per cent in intraday trade before recovering some of those losses by the closing bell.
2) Adani Enterprises, Bharti Airtel, Eicher Motors, Adani Ports, SBI, HDFC Bank, UltraTech and Bajaj Finance were the top laggards, closing between 1.5 per cent and 5.7 per cent lower. On the other hand, Tata Motors, Apollo Hospitals, Hindalco, PowerGrid, Divi's and IndusInd -- declining between one per cent and 5.9 per cent -- rose the most among blue-chip stocks.
3) Reliance, HDFC Bank and ICICI Bank were the biggest drags on both Sensex and Nifty50, accounting for more than 300 points in the fall in Sensex.
4) Barring the Nifty Auto and the Nifty Healthcare, which finished 0.3 per cent and 0.1 per cent higher respectively, all of NSE's sectoral indices ended in the red. The Nifty PSU Bank was the worst hit, falling 2.7 per cent for the day. The Nifty Bank closed with a cut of 1.4 per cent.
5) The Nifty IT -- whose 10 constituents include TCS, Infosys and Wipro -- finished 0.9 per cent lower. TCS ended lower by Rs 33.5 or one per cent at Rs 3,286.2 apiece on BSE.
6) Overall market breadth turned negative from neutral during the course of the day, with an advance-decline ratio of 2:3 as 1,427 stocks rose and 2,094 fell at the close on BSE.
7) Analysts await a speech by Fed Chairman Jerome Powell scheduled later in the day for clues on the path of rate hikes in the world's largest economy.
8) European shares began the day in the red amid broad-based selling amid nervousness among investors ahead of the Fed Chair's speech, a day after two US central bank officials struck a hawkish tone. The UK's FTSE 100 was down 0.7 per cent at the last count.
9) S&P 500 futures edged 0.1 per cent lower, suggesting minor weakness ahead on Wall Street.
10) Equities in other Asian markets fell following a largely weak handover from Wall Street on Monday. MSCI's broadest index of Asia Pacific shares outside Japan finished 0.3 per cent lower. Japan's Nikkei 225 rose 0.8 per cent as the market returned to trade after a holiday. Hong Kong's Hang Seng fell 0.3 per cent and China's Shanghai Composite 0.2 per cent.
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Latest Updates
Nifty Bank faces stiff resistance at 43,000: LKP Securities' Kunal Shah
Kunal Shah, Senior Technical Analyst at LKP Securities, is of the view that the Nifty Bank faces stiff resistance at the 43,000 level and finds support at 42,000, a level, which if breached, can lead to further selling pressure towards the 41,500-41,400 zone. "This will be the last line of defence for the bulls," he says.
Investors lose Rs 2.2 lakh crore in wealth in a day
Investors lost Rs 2.2 lakh crore in wealth on Tuesday as the market capitalisation of BSE-listed companies came down to Rs 280.8 lakh crore, according to provisional exchange data.
Closing Bell | Sensex ends 632 points lower, Nifty50 gives up 17,950
Both headline indices end with losses of one per cent each. The Sensex loses 631.8 points to end at 60,115.5 and the Nifty50 settles at 17,914.2, shedding 187.1 points for the day.
Infosys likely to report 9% sequential growth in Q3 net profit
Infosys -- India's second largest IT firm -- is all set to report its financial results for the October-December period on January 12, after its rival Tata Consultancy Services (TCS) reported a mixed set of quarterly earnings.
According to Zee Business research, Infosys is expected to report a net profit of Rs 6,580 crore for the three-month period, which translates to an increase of 9.3 per cent compared with the previous quarter. The IT major is estimated to report revenue growth of 3.8 per cent on a sequential basis to Rs 37,920 crore for the quarter ended December 2022.
Revenue in dollars is estimated to increase to $4614 million for the quarter, as against $4555 million for the previous three months -- a sequential rise of 1.3 per cent, according to Zee Business research.
Revenue in constant currency terms is estimated to improve by 1.5 per cent compared with the July-September period.
Infosys is estimated to mainain its growth guidance at 15-16 per cent in constant currency terms as well as the EBIT margin guidance at 21-23 per cent, according to Zee Business research. (What more to expect from Infosys in Q3)
Tata Motors surges on rise in JLR wholesale volumes; brokerages see 30% upside
Tata Motors shares jump by as much as Rs 28.3 or 7.3 per cent to Rs 417.7 apiece on BSE, after the auto major's subsidiary, Jaguar Land Rover (JLR), reports higher wholesale volumes in the October-December period on the back of improvement in chip supplies.
CLSA expects JLR's margin profile to improve with volume growth. For commercial and passenger vehicles, according to the brokerage, that business margins is likely to improve on lower commodity costs and price hikes.
CLSA has upgraded Tata Motors to 'buy' from 'outperform' with a target price of Rs 512 -- implying upside potential of 31.5 per cent from Monday's closing price.
JPMorgan has a 'neutral' call on Tata Motors with a target at Rs 400 per share. (Read more on Tata Motors shares)
ICICI Securities sees improving margin cushioning auto, auto ancillary results sequentially in Q3
The brokerage expects auto earnings for the October-December period to sail through smoothly on a sequential basis for the auto space. It sees the weaker scale impact getting balanced by higher gross margin in coparison to the July-September period, with Q4 being a quarter of better scale and margin combined.
Despite scale being closer to the 2018-19 highs in passenger and commercial vehicles, the EBITDA for most is far lower than the 2018-19 levels due to the lower gross margin, according to ICICI Securities, which it believes should gradually recover from the December quarter.
ICICI Securities has TVS Motors, Ashok Leyland, Apollo Tyres Balkrishna Industries and Mahindra CIE as its top picks for the auto sector.
Avoid largecap IT stocks, focus on smaller segments instead: Centrum Broking's Nilesh Jain
Nilesh Jain, Assistant Vice President-Lead Derivative and Technical Research at Centrum Broking, warns of profit booking in TCS shares. The company's quarterly results, in his view, did not meet market expectations.
He suggests avoiding the largecap IT space at the current juncture. Investors must focus on mid-cap and small-cap stocks in the sector, he says.
He likes stocks such as Firstsource Solutions, KPIT Tech and L&T Tech Services.
One can expect some pullback in the IT sector as the Nifty IT is seeing a lower top-lower bottom formation on the technical charts, but no major upside is on the cards over the near term, he adds.
All 10 Nifty IT constituents in the red; TCS worst hit
Stock/index Change (%) NIFTY IT -1.2 S&P BSE IT -1.2 Nifty50 -1.2 WIPRO -0.2 HCLTECH -0.2 MPHASIS -0.5 PERSISTENT -0.8 LTTS -1.1 COFORGE -1.1 TECHM -1.4 INFY -1.5 LTIM -1.6 TCS -1.6 TCS shares remain under pressure after mixed earnings
Tata Consultancy Services (TCS) shares continue to reel under pressure, a day after the IT major reported a mixed set of earnings. The TCS stock is quoting weaker by Rs 55.7 or 1.7 per cent at Rs 3,264 on BSE after falling by as much as Rs 88.7 or 2.7 per cent to Rs 3,231 apiece.
TCS reported a net profit of Rs 10,846 crore for the October-December period and revenue of Rs 58,229 crore. According to Zee Business research, TCS was estimated to report a quarterly net profit of Rs 11,270 crore and revenue of Rs 57,280 crore. (Read more on TCS shares)
Sona BLW Precision, Tata Motors, Tanla top gainers in BSE 500 universe
More than 350 stocks in the index are struggling in the negative zone. UCO Bank, IDBI, Maharashtra Bank, Indian Overseas Bank and Adani Enterprises are the top laggards in the 500-scrip index.
Fear index VIX surges
The India VIX -- known in market parlance as the volatility or fear index -- is up 4.2 per cent at 15.3, having surged as much as six per cent earlier in the day.Nifty PSU Bank, Nifty IT worst hit among NSE's sectoral indices
The Nifty Bank is also among the top laggards among the bourse's sectoral gauges, trading 1.2 per cent lower. On the other hand, the Nifty Auto is among the few gainers, holding up 0.6 per cent.
Index Change (%) NIFTY PSU BANK -2.6 NIFTY IT -1.5 NIFTY BANK -1.2 NIFTY FINANCIAL SERVICES -1.2 NIFTY PRIVATE BANK -1 NIFTY REALTY -0.6 NIFTY OIL & GAS -0.5 NIFTY METAL -0.5 NIFTY FMCG -0.4 NIFTY MEDIA -0.2 NIFTY CONSUMER DURABLES -0.2 NIFTY PHARMA 0.3 NIFTY HEALTHCARE INDEX 0.4 NIFTY AUTO 0.6 Hitman Himanshu | Buy Nifty50 18,000 at-the-money call, says Globe Capital Markets' Himanshu Gupta
Globe Capital Markets' Himanshu Gupta suggests buying the Nifty50 18,000 call at Rs 70-80 for a target of Rs 160-200 with a stop loss at Rs 50.
Exclusive | Goldilocks Premium's Gautam Shah says 2023 can be a challenging year for D-Street
In an exclusive interaction with Zee Business Managing Editor Anil Singhvi, Gautam Shah of Goldilocks Premium Research says 2023 can be a challenging year for the market.
Sharing his outlook for the year, Shah says the Nifty50 has a big hurdle at 18,300 and support at 17,800, which, if broken, will lead to the next base at 17,300-17,400 and then 16,900 though this is "not our worst-case scenario view for the year".
CG Power is Simi Bhaumik's positional midcap pick for targets up to Rs 380
In an interaction with Zee Business Managing Editor Anil Singhvi, technical analyst Simi Bhaumik suggests buying CG Power for the next 3-6 months as a positional pick for target prices of Rs 340, Rs 355 and Rs 380.
CG Power shares have rewarded investors with a return of almost 43 per cent in the past six months, a period in which the Nifty50 benchmark has risen 10.8 per cent.
Market breadth turns in favour of bears
Overall market breadth is getting skewed in favour of the bears from being neutral in early deals. The advance-decline ratio on BSE is at 9:10, as 1,379 stocks are quoting higher and 1,601 struggling below the flatline on the bourse.
All eyes on Fed ChairJerome Powell's speech later in the day
Analysts await a speech by Fed Chairman Jerome Powell scheduled later in the day for clues on the path of rate hikes in the world's largest economy.
"The Fed Chair is unlikely to depart from the central bank’s hawkish stance but if CPI data of Wednesday confirms the declining trend in inflation, the market will get ahead of the Fed and will start pricing in a terminal rate below five per cent and possible rate cuts by end-2023," says VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
TCS, HDFC Bank, Infosys, Reliance top drags on headline indices
The four account for more than 250 points in the fall in the 30-scrip index at this hour.
TCS top laggard on Sensex, Nifty50 after Q3 results
A total of 29 stocks in the Nifty50 basket are struggling below the flatline. TCS is the top laggard, declining by as much as Rs 88.7 or 2.7 per cent to Rs 3,231 apiece on BSE. The selling pressure comes a day after the country's largest IT firm reported its financial results for the October-December period.
Infosys, Britannia, Hero MotoCorp, Eicher, HDFC Bank, HDFC, SBI and ITC are some of the other worst-hit blue-chip stocks. On the other hand, Tata Motors, Hindalco, Tata Steel, JSW Steel, PowerGrid, Apollo Hospitals, ONGC and Mahindra & Mahindra are the top gainers.
Currency LIVE: Rupee trades stronger Vs Dollar
Commodity Markets LIVE: MCX Snapshot
Anil Singhvi Strategy on Nifty, Bank Nifty - Key support and resistance levels
Domestic markets are seto to trade amid mixed global cues on Tuesday, Zee Business Managing Editor Anil Singhvi said while spelling out his strategy on Nifty and Bank Nifty. He expects Nifty and Bank Nifty to trade within a range. On TCS results, he said the Q3 earnings reported by the company were mixed and he does not expect a big move on either side in this stock.
Amid negative global markets, positive domestic institutional investors (DIIs), positive foreign institutional investors (FIIs), neutral futures & options (F&O) and positive sentiment cues, the short-term trend of the Indian stock markets will be positive on Tuesday, January 10, 2023.
Markets LIVE - Traders Diary: Strategy on 20 Stocks
In today's edition of Traders Diary, Zee Business research team brings its exclusive research on 20 stocks that investors and traders can refer to while making their strategies in them. The research team of analyst Arman Nahar and Kushal Gupta recommends a buy, sell or hold strategy in cash stocks, futures and give their best picks for today.
Trading Stretegy for today by Anuj Gupta of IIFL Securities
Dow at 33628
Support 33500 / 33300
Resistance 33800 / 34000
Sideways to Up
SGX Nifty at 18146
Suppprt 18050 / 17900
Resistance 18300 / 18450
Sideways to Up
Bank Nifty at 42767
Support 42400 / 42000
Resistance 43100 / 43500
Sideways to Up
USDINR at 82.44
Support 82.20 / 82.00
Resistance 82.60 / 82.80
Down
- BUY MCX GOLD February at 55600 STOP LOSS 55250 TARGET 56200
- Buy MCX Silver March at 68500 STOP LOSS 67900 TARGET 69600
- Buy MCX CRUDE OIL at 6100 STOP LOSS 5950 TARGET 6300
- BUY MCX COPPER January AT 746 STOP LOSS 740 TARGET 757
- BUY NCDEX GUAR SEED January AT 6200 STOP LOSS 6050 TARGET 6450
- BUY NIFTY AT 181000 STOP LOSS 17900 TARGET 18300
- BUY BANKNIFTY AT 42400 STOP LOSS 42000 TARGET 43100
- SELL USDINR AT 82.60 STOP LOSS 82.80 TARGET 82.20
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
Currency Watch - Expert Take and Outlook
- Rupee Close: 82.37
- Rupee opening: 82.25
- Range expected : 81.80 to 82.50
- Exporters to wait for levels above 82.50 to sell
- Importers to buy good dips near to 82.10 for near term payments and wait for lower levels to hedge."The market is looking at less aggressive FED rate hikes coupled with worries on inflation and as such is undecided on the direction. The dollar index was at 103.15 after recovering from lows of 102.95 while US 10 year was steady at 3.52%. Brent Oil was also unchanged around $ 80 per barrel levels. Asian currencies continued to gain against the dollar with CNH at 6.76 and KRW at 1237 levels," Anil Kumar Bhansali , Head of Treasury at Finrex Treasury Advisors LLP said.
"Rupee may open stronger around 82.25 levels as dollar index is lower and market awaits for cues from FED on interest rate hikes as also the US inflation figure due on Thursday. Stronger Asian currencies will keep rupee well bid though oil companies may come to buy $ and ensure that rupee does not appreciate much. Indias CPI inflation is expected to come around 5.90% same as last month," Bhansali said.
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
As India Celebrates World Hindi Day 2023, Zee Business wishes all its viewers a very happy HINDI DAY 2023
Markets LIVE - 10 triggers that could impact movement today
Technical Outlook
After three consecutive days of selling, the Headline Index Nifty started the first day of the week with a strong gap up opening of more than 100 points and continued to trade in bullish zone with some minor pull backs.
The Benchmark Index, on the daily chart, has formed ‘Above the Stomach ‘candle stick pattern. This candlestick pattern comes from the bullish family, where the first candle is a bearish candle but the second one is a bullish candle, which opens midway of the first candle but closes higher above it.
Now, Nifty has to be above 18,000 – 18,050 zones for an up move, towards 18,250 and 18,300 zones, whereas support is placed at 17,800 zones.
Stocks in Focus: TCS: Company announces mixed earnings results; know what brokerages recommend?
Tata Consultancy Services (TCS) -- India's largest IT services exporter -- reported a net profit of Rs 10,850 crore for the December quarter, marking growth of four per cent on a quarter-on-quarter basis and missing analysts' estimates. Tata Consultancy Services' earnings come at a time when IT companies have been reeling under margin pressure owing to increasing employee costs emanating from higher levels of attrition despite robust demand.
According to Zee Business research, TCS was expected to report a net profit of Rs 11,270 crore for the quarter, translating to a sequential increase of eight per cent.
Attrition at TCS eased by 20 bps sequentially to 21.3 per cent (12-month basis), though the IT firm saw a net decrease of 2,197 in headcount to 6,13,974. The company's management said it expects attrition to ease further in the coming months.
CLSA on TCS (CMP: 3320)
Maintain Outperform, Target raised to 3550 from 3500
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
Markets LIVE: What top brokerages recommend today?
-- CLSA on Reliance (CMP: 2597)
Maintain Buy, Target 2970
Nearing end of consolidation
Interesting events in 2H23 may set RIL on its next leap
These include ramp-up of its FMCG biz, launch of Airfiber for wireless broadband & new affordable 5G smartphones to monetise its pan- India standalone 5G network
Also see chances for an IPO of Jio &/or Retail in next 12-18 months
A 75% jump in its Retail Ebitda over next 2 yrs & more visibility on its omni channel offering are other +ves
-- Citi on Sona Blw Precision Forgings (CMP: 423)
Maintain Buy, Target 560
NOVELIC Acquisition Marks Foray into 3rd Biz Vertical- ADAS Sensors & Software
Val appear comfortable
Think target to reach $100m rev over next 6-7 yrs from CY2022 levels of €9.3mn will be an uphill task
- Nomuraon Sona Blw Precision Forgings (CMP: 423)
Maintain Buy, Target 609
Novelic acquisition – New growth dimension
Marks entry into sensors & software segment
Novelic is ahead of competition, and stricter Euro NCAP safety requirements (mandatory for five-star rating) can lead to significant growth
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
Monday Market Recap
Closing Bell: Indian equity benchmarks S&P BSE Sensex and NSE Nifty50 ended their three-day losing streak on Monday led by IT stocks. TCS and Infosys were once which led the surge in both indices. TCS shares gained as the company is set to announce its October-December Quarter results today, marking the beginning of earnings season.
India VIX, a measure of volatility in Nifty ended 2.47 per cent lower at 14.65.
The 30-scrip index ended 60,747.31 points or 1.41 per cent higher at 60,747.31 while the broader market Nifty50 finished at 18,101.20, up 241 points or 1.35 per cent from its previous closing.
The 50-stock Nifty50 traded in a 205 point range after opening with a gap up while Sensex moved in a 742 point range. Both benchmark indices ended their three-day losing streak.
The market breadth in was skewed in favour of gainers. On Nifty50, 43 stocks gained while 7 declined. The top gainers were Mahindra & Mahindra, SBI Life, IndusInd Bank, TCS and HCL Technologies while the top losers were Titan Company, Bajaj Finserv, Grasim Industries, Bajaj Auto and HDFC Life.
Positive action was seen in all Nifty sectoral indices but one - Nifty Consumer Durables, which fell nearly 0.5 per cent. The top performers were Nifty IT (+2.83 per cent), Nifty Metal (+1.43 per cent) and Nifty Auto (+1.23 per cent). Banking gauge Nifty Bank ended at 42,582.75, up 0.93 per cent or nearly 400 points.
Good Morning! This is Shivendra Kumar and I am back with all the LIVE action from the markets. Watch this space to remain updated!
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