Morning Update :–NTPC, Bajaj Auto, Bharti Airtel, Hero MotoCorp, and LTIMindtree were among the main gainers on the Nifty, while Axis Bank, IndusInd Bank, Asian Paints, and Britannia were among the major losers.
Sensex – Rise +192 Points at 72,039
Nifty 50 – Rise +62 Points at 21,720
Indian Market
FII AND DII
| FII Bought | 1,513.41 Cr |
| DII Sold | 1,387.36 Cr |
Indian Market News
- Asian markets are split; the Nikkei is up 0.5%, while the Hang Seng is down 0.7%.
- Gold takes a break as US payrolls approach; palladium falls.
- Oil prices rose in response to Fed statements on inflation and Middle East concerns.
- On January 5, the RBI will hold a 7-day Variable Rate Repo auction.
- The price of maize-based ethanol has risen by Rs 5.79/litre to Rs 71.86/litre.
- Dabur India’s Q3 revenue is expected to increase by a’mid-to-high single digit’ percentage.
- The S&P 500 and Nasdaq have extended their year-to-date losses to three; the Dow is higher on financials.
- Bitcoin’s climb resumes, with ETF approval expectations improving.
- RBL Bank’s third-quarter gross advances increased by 20% year on year to Rs 81,870 crore.
- According to Sobha, total sales in the third quarter increased 37% year on year to Rs 1,951.6 crore.
- India’s GDP growth predictions for 2023/24 are anticipated to be higher.
- Grasim receives board approval for a Rs 3,999.80 crore rights issue, with an issue price of Rs 1,812 per share.
- L&T Finance anticipates a 31% increase in retail loan growth in the third quarter.
Global Markets updates
GIFT Nifty
With a drop of 14 points, the GIFT Nifty indicates a somewhat negative start for the broader index. GIFT Nifty futures were trading at 21,775 points, down from a high of 21,816 points.
US Markets
•Stock Futures Rise Amid Jobs Report
• Dow Jones Industrial Average futures rose by 46 points, or 0.1 percent.
• S&P 500 and Nasdaq 100 futures added about 0.1 percent.
• The Dow closed marginally higher on the day but is still down for the week.
• The three major averages are on track to break nine-week winning streaks, with the Nasdaq Composite suffering the biggest loss for the week at 3.3%.
• The market is weighed down by the cooling off of large cap tech stocks like Apple, downgraded by two research shops.
European Markets
•European Stocks Close Higher
• Stoxx 600 index closed up 0.7% after two downbeat sessions.
• Banking stocks rose 1.8%, technology fell 0.4%.
• Retail stocks fell 0.8% due to mixed trading updates.
• Next rose to a record high after lifting its full-year profit outlook for the fifth time.
• JD Sports plunged 23% due to slightly below-prediction late-year sales and gross margin rate.
Asian Markets
• Asia-Pacific markets struggled to recover from initial trading losses.
• Southeast Asia’s economic data, including inflation and retail sales data, are expected later.
• Australia’s S&P/ASX 200 traded slightly higher after two consecutive losses.
• Japan’s Nikkei 225 and Topix added 0.11 percent and 0.32 percent respectively.
• South Korea’s Kospi and Kosdaq dipped 0.08 percent and 0.08 percent respectively.
• Hong Kong’s Hang Seng index futures showed a weaker open compared to the HSI’s close of 16,645.98.
Oil Prices
• Oil Prices Fall 2% on Thursday
• Brent crude fell by 2% to $79.01 a barrel.
• US West Texas Intermediate crude futures fell by 2% to $73.57.
• Low fuel demand and large inventory increases from the US Energy Information Administration impacted prices.
• Gasoline stocks rose by 10.9 million barrels to 237 million barrels, their highest week-on-week rise in over 30 years.
• Distillate stocks rose by 10.1 million barrels to 125.9 million barrels, with distillate product supplied falling to its lowest level since 1999.
• Crude inventories drew by 5.5 million barrels in the week, largely due to shipping disruptions in the Red Sea.
Dollar Index
In futures trading, the Dollar index was 0.08 percent down at 102.42, while the value of one dollar was close to Rs 83.26.
Gold Prices
• Gold prices recovered from a two-week low due to dollar pullback.
• Spot gold rose less than 0.1% to $2,041.59 per ounce.
• US gold prices rose about 0.3% to $2,049.3 per ounce.
• Private sector jobs rose faster than expected in December.
• Private payrolls rose by 164,000 for the month.
• Initial jobless claims fell for the last full week of 2023.
News Updates
Anticipate a slump in 2024; steer clear of stocks with dubious fundamentals and place bets on these themes
Following an exceptional 2023, in which the Nifty and Sensex both experienced 20 percent gains, the Indian equities markets started 2024 with modest gains amidst elevated volatility. On January 1, the VIX volatility index spiked to 14.5, signalling the impending arrival of extreme volatility.
Large selling episodes may occur at higher VIX levels, according to analysts. However, Vinod Nair, Head of Research at Geojit Financial Services, stated that India is expected to continue to outperform in the long run because of a strong domestic political and economic structure.
Apple’s rating is downgraded again in 2024, marking a difficult beginning.
After Piper Sandler became the second brokerage this week to lower Apple’s shares because to concerns about the company’s sluggish demand for its products, particularly the iPhone, the company saw more declines on Thursday, losing almost $176 billion since the start of the year.
On Thursday, the company’s shares fell 1.7% to $181.20, an eight-week low. Apple’s daily value may drop by $47.4 billion if the declines continue.
They continued, “Adani Transmission is the biggest beneficiary of the same.” Adani Transmission changed its name to Adani Energy Solutions in July 2023.
Rights issue: At Rs 1,812 per share, Grasim plans to issue roughly 2.2 crore shares.
The flagship company of the Aditya Birla Group, Grasim Industries, fixed the price for the rights issue, which was approved in October, at Rs 1,812 per rights equity share. The cement manufacturer intends to raise a maximum of Rs 4,000 crore to fund its ongoing capital expenditure plan and pay off its outstanding debt.
There will be 2,20,73,935 rights equity (RE) shares issued by the corporation in total. Investors will pay Rs 1,812 on a fully paid basis, which is 12.40 percent less than the previous closing price. A company’s offering of shares or convertible securities to its shareholders is known as a rights issue. Businesses use this approach a lot to raise money for different reasons.
The ratio of the rights entitlement, owned by the qualifying equity shareholders on the record date, is six shares for every 179 fully paid-up equity shares of the corporation.
According to DGCA, domestic carriers welcomed 133 aircraft in 2023.
In 2023, domestic airlines added 133 new aircraft to their fleet, a 51% increase in yearly total as they continued to grow their networks to accommodate the increasing number of passengers. Twenty-one of the 133 aircraft were taken on a wet lease by the carriers.
The Directorate General of Civil Aviation (DGCA) stated in a release on January 4 that it is “suitably enhancing its regulatory capacity to further speed up the regulatory approvals related to the induction of aircraft” in response to the expected rise in aircraft inductions in 2024. It was not possible to gather precise information regarding the steps taken to strengthen the regulatory capacity right away.
Stocks in news
Grasim Industries: The Board of Directors has approved the Aditya Birla Group company’s rights issue, valued at Rs 3,999.80 crore, with a specified issue price of Rs 1,812 per share. The period of opening for the rights issue is January 17–29.
RBL Bank: For the quarter that ended in December of FY24, the private sector lender reported a 13% YoY increase in total deposits at Rs 92,743 crore. Retail LCR deposits increased by 16% YoY to Rs 41,209 crore. Retail advances increased 32% YoY and wholesale advances 6% YoY during the quarter, resulting in a 20% YoY growth in gross advances to Rs 81,870 crore.
Dabur India: During Q3 of FY24, mid-to high single-digit rise in consolidated revenue is anticipated. Food and beverage (F&B) and home and personal care (HPC) sectors in Indian business are anticipated to grow in the high single digits and mid-single digits, respectively, while the international business is anticipated to grow by double digits in constant currency terms, driven by strong momentum in the MENA region.
L&T Finance Holdings: The retail loan book at the end of Q3FY24 is anticipated to be Rs 74,750 crore, expanding 31% YoY, while the retail disbursements for Q3FY24 are estimated to be roughly Rs 14,500 crore, a rise of 25% YoY. By the conclusion of Q3FY24, the portfolio’s realisation is projected to be 91%.
Lupin: The multinational pharmaceutical company has been granted provisional approval by the US Food and Drug Administration (US FDA) to market a generic version of AstraZeneca AB’s Qtern tablets. The abbreviated new drug application for Dapagliflozin and Saxagliptin tablets comes in two strengths: 5 mg/5 mg and 10 mg/5 mg.
Utkarsh Small Finance Bank: For the quarter ended December FY24, the small finance bank’s gross loan portfolio increased by 30.8 percent year over year (up 10.2 percent quarter over quarter) to Rs 16,408 crore. Meanwhile, total deposits increased by 17.6 percent year over year and 8.2 percent quarter over quarter to Rs 15,111 crore.
Jammu & Kashmir Bank: The institution reported gross advances of Rs 93,626.5 crore for the December FY24 quarter, a 14.13 percent increase over the same period last year. While total deposits rose by 9% YoY to Rs 1,28,544 crore, overall business climbed by 11.8 percent YoY to Rs 2,18,650 crore. CASA deposits reached Rs 65,035 crore for the quarter, an increase of 2.68 percent year over year.
Jupiter Waggons: The Ministry of Defence has awarded the business a contract for Rs 473 crore to manufacture and supply 697 Boggie open military (BOM) waggons.
Sobha: Through open market transactions, foreign investor Dendana Investments Mauritius has selected 5,09,500 equity shares, or 0.53 percent of paid-up equity, at an average price of Rs 1,269.57 per share. The market value of these shares was Rs 64.68 crore. The real estate developer situated in the south has seen a 37 percent year-over-year increase in overall sales value, amounting to Rs 1,951.6 crore. Sobha’s portion of this growth, at Rs 1,735.5 crore, has increased by 56.2 percent YoY. The average price realisation increased by 21.5 percent year over year to Rs 11,732 per square foot from Rs 9,653 per square foot.
ESAF Small Finance Bank: Deposits at the bank climbed by 20.34 percent year over year and 13.33 percent quarter to Rs 3,562 crore during the quarter that ended in December of FY24, totaling Rs 18,860 crore. This represents a growth of 40.62 percent YoY and 8.3 percent QoQ. At Rs 17,156 crore, gross advances for the quarter increased by 13.44 percent QoQ and 36.77 percent YoY. The gross non-performing assets (NPA) increased 152 basis points QoQ to 4.16 percent, while the net NPA increased 99 basis points QoQ to 2.2 percent for Q3 FY24, indicating a weakening of the asset quality.
Kay Cee Energy & Infra: On January 5, Kay Cee Energy & Infra, an EPC business, is scheduled to float its shares on the NSE Emerge. The price per share for the final issue has been set at Rs. 54. The trade-for-trade component will allow trading of its equity shares.
Zuari Industries: As of January 4, Zuari Envien Bioenergy is no longer a wholly-owned subsidiary of Zuari Industries; instead, it will function as a 50:50 joint venture between Zuari Industries and Envien International, which is a component of the Envien Group, based in Malta. In addition to the 10,000 fully-paid-up equity shares already assigned to Envien, Zuari Envien Bioenergy has also granted Envien 1,84,90,000 partly-paid-up equity shares. Meanwhile, Zuari Industries currently owns 10,000 fully-paid-up equity shares and 1,84,90,000 partly-paid-up equity shares in Zuari Envien Bioenergy.
Tracxn Technologies: At an average price of Rs 114.44 per share, 5.8 lakh shares, or 0.56 percent of paid-up equity capital, were sold by the foreign business Seabright II. In September 2023, Seabright owned 4.16 percent of the company.
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