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Market Recap for 21 January 2021
Morning update for 21 January 2021
Indices at 10:00 am
Nifty50 14,706 ▲ 61 (+0.4%)
Sensex 50,042 ▲ 249 (+0.5%)
Nifty Bank 32,680 ▲ 136 (+0.4%)
In the news
RIL-Future Group deal gets SEBI nod
- The SEBI has approved the ₹24,713 crore deal between Reliance Industries and the Future Group. The approval came through despite Amazon’s plea in the Delhi High Court to stay the deal.
- As part of the deal, Future Group will sell its retail, wholesale, logistics and warehouse businesses to Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries. Shares of Reliance Industries (+2.3%), Future Retail (+4.9%) and Future Supply Chain Solutions (+4.9%) we're trading in the green today.
Bajaj Finance Q3 profits plunge
- The consumer lending-focused NBFC reported a 29% YoY fall in its net profits, which stood at ₹1,146 crore in Q3 compared to street estimates of ₹1,181 crore. At ₹6,658 crore, its revenues too declined 5% during the same period.
- Meanwhile, assets under management increased 4.3% to ₹1.4 lakh crore. Most of its businesses are disbursing 85-100% of last year volumes, except for auto finance which is still lagging. Results notwithstanding, the stock gained 3.2% today but as ceded around 2.6% in January.
Havells Q3 profits rise on demand boost
- The electrical equipment maker reported a 39.4% YoY jump in its Q3 standalone revenues to ₹3,166 crore. The sales growth was mainly supported by improved consumer sentiment, festive demand and increased penetration in smaller towns.
- Its net profit soared 75% YoY to ₹349 crore mainly due to lower advertisement and sales promotion expenses. Shares of Havells rose (+7%) today and are up 16% so far in January.
Tejas Networks Q3 revenues soar
- Shares of the networking products maker jumped () today after it reported Q3 consolidated revenues of ₹134.9 crore, up 56% YoY. Compared to a loss of ₹112 crore in Q3 last year, it delivered a net profit of Rs. 9.2 crore.
- Its order book increased by ₹73 crore to 672 crore. The company said that its cash flow position is improving and it currently holds cash and cash equivalents of ₹335 crore with no debt on the books.
Events this week
- Thursday: Home First Finance IPO opens (India), Initial Jobless claims (US)
- Friday: Reliance Industries Q3 results
Sectoral indices
| Top gainers | Top losers |
| Nifty IT ▲ 1.2% |
Nifty Metal ▼ 0.6% |
| Nifty Auto ▲ 0.7% |
Nifty Realty ▼ 0.1% |
| Global markets | Today's movement |
| Nikkei 225 (Japan) | ▲ 0.9% |
| Hang Seng (Hong Kong) | ▲ 0.1% |
| SSE Composite (China) | ▲ 1.3% |
| Dow Jones (US) (15 Jan) |
▲ 0.8% |
Fact of the day
Exactly 45 years ago, Concorde inaugurated the world’s first scheduled supersonic passenger service from London to Bahrain.
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Market recap for 20 January 2021
Nifty50: 14,644 ▲ 123 (0.8%)
Sensex: 49,792 ▲ 393 (+0.8%)
The Indian markets opened in the green and marched upward throughout the day. The rise was supported by advances in 32 out of the Nifty50 stocks.
Except for the Nifty FMCG (-0.1%), which closed almost flat, all sectoral indices traded in the green. The Nifty Auto and Nifty IT indices rose the most, gaining about 2.2% each.
| Top gainers | Today's change |
| Tata Motor | ▲ 6.0% |
| Adani Ports | ▲ 4.4% |
| Wipro | ▲ 3.4% |
| Top losers | Today's change |
| Power Grid | ▼ 2.1% |
| Shree Cement | ▼ 1.8% |
| NTPC | ▼ 1.5% |
Here are the top stories of the day.
Metals sales boost Hindustan Zinc’s Q3 profits
- The integrated zinc-lead producer, which is a part of the Vedanta Group, reported a 36% YoY jump in Q3 profits, to ₹2,200 crore. During the same period, revenues from operations grew 28% to ₹5,915 crore.
- The company said the rise in profits is a result of the increase in sales of metals. Sales of silver rose 66%, zinc by 21% and lead by 25% YoY. Today, the stock saw profit-booking and fell 1.1% after rising over 11% yesterday.
Federal Bank’s asset quality improves
- The Kochi-based private bank’s Q3 profits dipped 8% YoY to ₹404 crore. The drop comes primarily due to a two-fold increase in provisioning for bad loans. In contrast, the bank's total income at ₹3,941 improved 5.4% over the same period last year.
- The bank’s gross NPAs declined from 2.9% to 2.7%, while net NPAs too were down to 0.6% against 1.6% last year, indicating an improvement in asset quality. The stock gained 2.5% today.
Adani Green to set up solar plant in Kutch
- Shares of the renewable energy producer were upbeat after the company announced that it has commissioned a 150 MW solar power plant in Kutch, Gujarat, three months ahead of schedule.
- This takes the company’s total operational renewable capacity to 3,125 MW, with an additional 11,670 MW capacity under implementation. The company aims to set up 25,000 MW capacity by 2025. The stock was up 2.3% today.
Gateway Distriparks soars on Q3 results
- Shares of the logistics service provider were locked in the 20% upper circuit today as its Q3 consolidated net profits nearly doubled to ₹32.6 crore.
- Strong operating performance led to the rise in profits even as total income grew by a meagre 4% YoY to ₹316.2 crore. Due to a faster-than-expected recovery in exports and imports, the company witnessed improvement in volumes sequentially every month since the beginning of Q3.
Crude oil gains on weak dollar
- Crude oil prices rose over 1% today due to signs of weakness in the US dollar. Further, the new stimulus from the US government is expected to revive growth and boost demand for oil.
- Meanwhile, the International Energy Agency (IEA) reduced estimates for oil demand in 2021 amid extension of lockdowns in some European countries and fresh lockdowns imposed in certain parts of China.
Closing bell
The Indian markets ended the day on a positive note, taking cues from most global equity indices. The Nifty hit a lifetime high and the Sensex is less than one per cent away from the coveted 50,000 mark. The mood, in general, is cheerful, with even gold and silver prices on an upward move. Further, most Q3 results have been in line with or better than street expectations and thus do not give any negative signals.
Meanwhile, index heavyweight Reliance Industries is expected to announce its results on Friday and in the run-up to the results it has already gained nearly 6% this week.
Good to know
What is a ASBA?
ASBA or Application Supported by Blocked Amount, is a mode of payment developed by the SEBI to subscribe to issues (such as IPOs). Through this method, the application money remains in the investor's account till shares are allotted.
If you haven't already, open your Upstox account to get IPO-ready today! Click here to sign up.
Morning update for 20 January 2021
Indices at 10:00 am
Nifty50 14,576 ▲ 55 (+0.3%)
Sensex 49,562 ▲ 163 (+0.3%)
Nifty Bank 32,431 ▲ 6 (+0.0%)
In the news
Ceat zips ahead on Q3 profits
- The RPG Group-owned tyre company reported consolidated net sales of ₹2,212 crore in Q3, a YoY improvement of 26.1%. Its profits rose over 150% YoY to ₹132 crore.
- The company attributes the growth to new capacities across segments, particularly passenger car, two-wheeler and farm segments. It also reduced debt by ₹260 crore during the quarter. For Q4, margins may be under pressure due to increasing raw material prices. Shares of the tyremaker gained 2.6% today.
Tata Communication sees flat revenue growth
- Shares of Tata Communication declined over 7.0% today after the company posted Q3 revenues of ₹4,223 crore, nearly unchanged from the same period last year.
- Its net profit rose four-fold to ₹309 crore mainly driven by the data business, which contributed 98% of the overall EBITDA. Its shares gained over 175% in 2020 and are now showing signs of profit booking.
DCM Shriram revenues decline
- Chemicals maker DCM Shriram reported a 2% YoY decline in revenues to ₹2,159 crore, mainly due to lower chemical prices and lower sugar exports. However, its profit after tax rose nearly 45% YoY to ₹253 crore.
- Improvement in profitability was a result of higher PVC prices and volumes along with superior earnings in the distillery business. The company has lined up investments worth ₹1,000 crore in downstream chemical products to be executed in the next two years. Its shares gained nearly 1% today and gained about 9% in Q3.
Tata Metaliks profits rise on improved margins
- Owing to higher margins in pig iron (PI) and ductile iron (DI), Tata Metaliks’s Q3 profits rose 55% YoY to ₹758 crore. At ₹526 crore, consolidated net revenues grew by a more modest 1.5% during the same period.
- The subsidiary of Tata Steel makes PI and DI pipes. Its shares gained 0.6% today, and have risen about 36% in January.
Events this week
- Wednesday: Indigo Paints IPO opens (India)
- Thursday: Home First Finance IPO opens (India), Initial Jobless claims (US)
Sectoral indices
| Top gainers | Top losers |
| Nifty IT ▲ 2.4% |
Nifty FMCG ▼ 0.0% |
| Nifty Auto ▲ 1.0% |
NA |
| Global markets | Today's movement |
| Nikkei 225 (Japan) | ▼ 0.5% |
| Hang Seng (Hong Kong) | ▲ 0.2% |
| SSE Composite (China) | ▲ 0.1% |
| Dow Jones (US) (15 Jan) |
▲ 0.3% |
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Stocks to Watch on 20 January 2021
Following Britain’s exit from the European Union, talks between the UK government and
Tata Steel on finding a solution for the company’s bleeding UK unit have yielded no progress
In a first, Sebi has asked France-based
Schneider Electric
President Systems to re-list its shares on any nationwide stock
exchange within six months, or follow proper delisting process and give
small shareholders an exit opportunity.
Bharti Hexacom, a subsidiary of India’s second largest telco
Bharti Airtel, is raising up to Rs 1,500 crore via domestic bonds.
Fintech platform BharatPe has put in a joint bid with financial services firm
Centrum to acquire troubled lender
PMC Bank.
In partial relief to
HUL, the Bombay High Court Tuesday directed USV to withdraw ads that compare Lux and Pears with Rin.
Canadian billionaire Prem Watsa-controlled
CSB Bank
said its net profit almost doubled to Rs 53 crore in the third quarter
from Rs 28 crore a year earlier due to strong loan growth riding on a
whopping 60% rise in loan against gold.
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Nifty futures on the Singapore Exchange traded 33.45 points higher at 8:30 am (IST), signalling a positive start for Dalal Street. |
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On Tuesday, Nifty50 formed a strong bullish candle on the daily scale and negated the formation of lower highs. Analysts said Nifty can consolidate further, before commencing a larger rally. |
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Asian stocks traded mixed this morning. Japan’s Topix index dipped 0.6%, Hong Kong’s Hang Seng rose 0.3% while South Korea’s Kospi dipped 0.3%. Australia’s ASX 200 rose more than 0.5%. |
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On Wall Street, the Dow rose 0.38% in overnight trade, while the S&P500 gained 0.81%. The tech-heavy Nasdaq Composite added 1.53%. |
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The rupee gained 11 paise to settle at 73.17 against the US dollar on Tuesday on the back of rally in domestic equities and weak American currency. |
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The dollar extended its retreat, as investors turned focus to riskier assets. The euro was 0.1% and the offshore yuan 0.1%. The yen traded at 103.81 per dollar. |
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Oil extended gains in Asia on expectations US President-elect Joe Biden’s incoming administration will take steps to revive growth and energy demand in the world’s largest economy. WTI contracts for February delivery, which expire Wednesday, rose 0.3% to $53.12 a barrel. Brent for March settlement climbed 0.3% to $56.04. |
| Gold prices rose by Rs 81 to Rs 48,975 per 10 gm in futures trade on Tuesday as speculators created fresh positions on a firm spot demand. Silver too gained. On MCX, silver contracts for March delivery rose by Rs 520, or 0.79 per cent, to Rs 65,949 a kg. In international markets, gold rose 0.3% to $1,845.43 an ounce. |
Pre-Budget rally ahead?... The change in the marketwide put-call option positioning seems to suggest so. Whenever the value of the outstanding marketwide stock and index call options is higher than that of the outstanding stock and index put options by Rs 30,000 crore, the markets tended to have bottomed and hit new highs subsequently. This happened on four occasions, the latest being on January 18, when the value of marketwide outstanding calls exceeded that of the marketwide puts by Rs 36,240 crore.
India may tighten FDI in e-commerce... India is likely to tighten the foreign direct investment (FDI) rules for e-commerce to check companies set up by the online marketplaces from trading on their own platform. The Department for Promotion of Industry and Internal Trade (DPIIT) may issue a clarification through a Press Note, expressly prohibiting e-commerce platforms from holding stake in a seller, directl
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