Nifty opening with a gap up after a gap. Can it Sustain?
Good Morning, Everyone, US markets extended losses yesterday and closed down similar to the Indian market, but now the futures are up indicating some positivity in the market.
Trends on the SGX Nifty indicate a big gap up opening in the Nifty, however, such a high gap up is generally not sustained, however, I am happy that 16800 again acted as a support to Nifty, which shows the strength of retailers and the DIIs in Indian Market.
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Global Markets:
Wall Street's main indices fell on Tuesday, with the S&P 500 confirming a correction, as the Ukraine-Russia crisis kept investors on the edge after Russian President Vladimir Putin recognised two breakaway regions in the country and ordered troops to the area.
The Dow Jones Industrial Average fell 482.57 points, or 1.42 percent, to 33,596.61, the S&P 500 lost 44.11 points, or 1.01 percent, to 4,304.76 and the Nasdaq Composite dropped 166.55 points, or 1.23 percent, to 13,381.52.
Shares in the Asia-Pacific rose in Wednesday morning trade as investors continue monitoring the intensifying crisis surrounding Ukraine. South Korea’s Kospi climbed 0.3 percent in morning trade. The S&P/ASX 200 in Australia recovered from earlier losses, last up 0.21 percent. Markets in Japan are closed on Wednesday for a holiday.
Indian Market:
Trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 78 points.
Forecasting a lower-than-previously projected 10 per cent GDP growth for the fiscal year 2022 due to the third wave of the pandemic, foreign brokerage Barclays said the Indian economy is likely to have expanded by 6.6 percent in the December quarter.
The economy had a relatively stable Q3 with several sectors returning to pre-pandemic level of activity, with services playing a bigger role in activity, the report said, adding that with the mild Omicron wave in January, there is clear downside risks to the earlier growth forecast of 10 percent in FY22.
The government will go ahead with the upcoming initial public offering (IPO) of the state-run insurance giant LIC, Finance Minister Nirmala Sitharaman said on February 22, amid concerns raised over the potential fallout of the escalating tensions between Russia and Ukraine.
"There is a buzz in the market and there is interest for LIC IPO. We are going ahead with it," Sitharaman said. She, however, added that "we are equally worried if the market situation is conducive".
FII and DII data
Foreign institutional investors (FIIs) have net sold Rs 3,245.52 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought Rs 4,108.58 crore worth of shares in the Indian equity market on February 22
What brokerages Say:
CLSA has upgraded its rating on shares of Torrent Pharma while UBS has maintained its 'neutral' rating on shares of Infosys. Here are the top brokerage calls for the day:
Credit Suisse on Bandhan Bank | With credit costs seen moderating, the brokerage house expects return on equity to improve to 25 percent in FY23 for Bandhan Bank. The brokerage house has maintained its 'outperform' rating on the lender's shares.
CLSA on pharma sector | The brokerage house believes that risk-reward is favourable for Dr Reddy's Laboratories, Cadila Healthcare and Torrent Pharma. It has upgraded its rating on shares of Torrent Pharma to 'buy' from 'outperform'.
UBS on BPCL | There is further scope of earnings upgrade for BPCL on the basis of strong refining margin, UBS believes. The brokerage house has maintained its 'buy' rating on shares of BPCL.
UBS on Infosys | The brokerage house has maintained its 'neutral' rating on shares of Infosys. The technology company says Q4 could see some QoQ headwinds due to lower working days, said the brokerage, adding it is more cautious on margin.
Stock Specific News:
Hero MotoCorp | The company has joined hands with BPCL for EV charging infrastructure.
Wipro | Wipro Ventures, the corporate investment arm of IT services major Wipro, has invested in a US-based startup, vFunction.
HDFC | Societe Generale on Tuesday offloaded shares of Housing Development Finance Corporation (HDFC) worth nearly Rs 1,730 crore through an open market transaction at an average price of Rs 2,436.8 apiece.
Mahindra CIE Automotive | Profit for the December 2021 quarter fell 28 percent YoY to Rs 80 crore, compared to Rs 112 crore profit reported in the corresponding period last fiscal. However, revenue during the same period rose 5.4 percent to Rs 2,064 crore, against Rs 1,958 crore YoY. The firm said the board of directors has approved a dividend of Rs 2.50 per share for the financial year ended December 31, 2021.
FSN E-Commerce Ventures (Nykaa) | The company informed that its litigation with L'Oreal S.A. has been settled. It had disclosed the details of pending litigation with L'Oreal S.A. in its IPO prospectus.
Dilip Buildcon | The firm has won a road project in Chhattisgarh. It has been declared as L-1 bidder for a new HAM project under Raipur-Visakhapatnam in the state and the order is worth Rs 1,141 crore.
SIS | The company has bagged a contract worth Rs 225 crore, from Mahanadi Coalfields. With this, it will deliver security solutions to Mahanadi Coalfields at 18 sites across India for the next two years.
Elantas Beck India | Profit for the December 2021 quarter fell by 26 percent to Rs 16.60 crore, compared to Rs 22.55 crore profit reported in the year-ago period. Revenue, however, jumped 23 percent to Rs 145 crore against Rs 118 crore in the same period. The firm said its board of directors has recommended the payment of a dividend of Rs 5 per equity share for the year 2021.
BPCL | Bidders for the government's stake in Bharat Petroleum Corporation Ltd have sought more clarity on autonomy in the pricing of fuel products. They also want the government to give a realistic timeline for the blending of ethanol with petrol to give them more flexibility, as per a newspaper report. Shares of Bharat Petroleum Corporation Ltd ended 3.69 percent lower and were the worst performers on Nifty50.
Capri Global Capital | Life Insurance Corporation of India has bought 1.5 lakh equity shares in the company via open market transactions on February 21. With this, LIC's shareholding stands at 5.04 percent now, up from 4.95 percent earlier.
Carborundum Universal | HDFC Asset Management Company sold 1.1 lakh equity shares in the company through open market transactions on February 18. After stake sale, HDFC AMC holds 5.59 percent shareholding now, down from 5.65 percent earlier.
Indiabulls Real Estate | The company’s stock closed 10.4 percent higher and was the top gainer on Nifty500. The Enforcement Directorate has sought some information from Indiabulls Housing Finance regarding some of their clients and it is understood that the necessary data has been provided to ED by Indiabulls Housing Finance and its officials. The said ED investigation did not pertain to Indiabulls Real Estate and has no bearing on the business and operations of the company, the clarification read.
Dhani Services | Shares of Dhani Services crashed 20 percent and settled percent lower amid heavy volumes.
Jagsonpal Pharmaceuticals | The company’s shares ended 20 percent higher after Infinity Holdings Group made an open offer to buy 26 percent stake in the company at a price of Rs 235 per share.