Morning Update :–Currently, the Nifty’s immediate support is at 21,800. On the upside, resistance is seen between 22,300 and 22,500. Mandar Bhojane, Research Analyst at Choice Broking, believes that the overall chart pattern, together with solid market breadth and sectoral performance, points to a bullish prognosis for the Nifty, with the possibility of further higher movement.
Sensex – Fall -115 Points at 73,212
Nifty 50 – Fall  -32 Points at  22,064
Indian Market
FII AND DII
| FII Bought | Â Â 1,085.72Â Cr |
| DII sold | 820.69 Cr |
Indian Market News
- Asian markets trade lower; Nikkei and Hang Seng are down 0.5% each.
- The dollar rises as traders consider rate decrease forecasts and focus on data.
- Â Japan’s wholesale inflation remained flat in December.
- BLS International arm signs deal to buy 100% ownership in iData for €50 million.
- Jio Financial Services’ Q3 net profit is Rs 293 crore, with NII of Rs 269 crore.
- CLSA’s View on Jio Financial Services
- Windfall tax on crude petroleum reduced to Rs 1,700/tonne from Rs 2,300/tonne, but windfall tax on diesel, ATF, and petrol remains nil.
- Angel One’s Q3 net profit increased 14% year on year to Rs 260 crore.
- Oil prices rise as the Middle East conflict worsens, and tankers reroute.
- PNC Infratech sold 12 road assets to Highways Infrastructure Trust for more than Rs 9,000 crore.
- Shakti Pumps under spotlight ahead of board meeting to raise funding through QIP.
- S&P upgraded Vedanta Resources just days after a downgrading.
Global Markets updates
GIFT Nifty
With a 51-point decline, the GIFT Nifty suggests a slightly negative start for the overall index. After peaking at 22,184 points, GIFT Nifty futures were trading at 22,092 points.
US Markets
Monday night’s stock futures decline as Wall Street expects additional information and bank results that should give a clearer picture of the status of the US consumer.
The Dow Jones Industrial Average-linked futures saw a 50-point, or 0.1-percent, loss. Futures on the S&P 500 fell by more than 0.1 percent, and those on the Nasdaq 100 fell by 0.2 percent.
A slowdown in US consumer spending could feed recessionary fears and concerns about economic development, which is why investors are anticipating the December retail sales data that is expected out on Wednesday. FactSet’s survey of economists predicts a 0.2 percent rise for the month, which is marginally less than the 0.3 percent increase in November.
European Markets
Monday’s closing price of European stocks was down as traders in the area prepared for the World Economic Forum in Davos, Switzerland. Major bourses and the majority of sectors had negative returns as the Stoxx 600 index closed the day provisionally down 0.5 percent. Travel stocks increased by 0.9 percent while household goods declined by 1%.
The German economy shrank by 0.3 percent in 2023, according to preliminary data released by the national statistics office. “In 2023, Germany’s overall economic development faltered in an environment that remains marked by multiple crises,” Ruth Brand, President of the Federal Statistical Office, stated at a press conference.
Brand pointed out that the GDP was 0.7% greater in 2019 than it was in 2019, prior to the pandemic, but that factors such as high inflation, rising interest rates, and decreased domestic and foreign demand all had an impact on the GDP.
Asian Markets
Tuesday saw a decline in Asia-Pacific markets, and the record-breaking advance in Japanese stocks since the year’s beginning was also stopped.
When Japan’s business goods price index came in flat year over year, against the 0.30 percent decline that experts in a Reuters poll had predicted, the Nikkei dropped 0.72 percent in early trading. In December, the CGPI increased by 0.30 percent on a month-over-month basis, defying predictions that it would stay unchanged.
The broad Topix experienced a 0.80% decline. The benchmark Nikkei 225 of the nation has reached significant benchmarks of 34,000, 35,000, and 36,000 – levels not seen by the market since 1990.
With a 1.11 percent decline, the S&P/ASX 200 in Australia is headed for its third straight day of losses. The small-cap Kosdaq plummeted 1.09 percent, and the South Korean stock market’s Kospi fell 1.08 percent. The mainland Chinese CSI 300 index decreased by 0.33 percent, while the Hang Seng index in Hong Kong fell by 0.66 percent.
Oil Prices
Following operations by US and British forces to deter the Houthi movement in Yemen from targeting ships in the Red Sea, traders were alert to the possibility of a disruption in the Middle East’s oil supply, which caused oil prices to decline on Monday.
Brent crude futures slid 31 cents, or 0.4 percent, to $77.98 a barrel by 0124 GMT after finishing up 1.1 percent on Friday. After rising about 1% in the previous session, U.S. West Texas Intermediate crude was down 32 cents, or 0.4 percent, to $72.36 per barrel. Following months of attacks on Red Sea shipping by Iran-backed fighters ostensibly in response to the Gaza War, U.S. and British forces launched dozens of airstrikes against Houthi forces. As a result, the benchmarks surged more than 2 percent last week to reach their highest intraday levels this year.
Dollar Index
One dollar was trading around Rs 83.09, while the Dollar index was down 0.06 percent in futures trading at 102.22.
Gold Prices
Due to increased speculation about an early rate decrease by the US Federal Reserve and the appeal of gold as a safe haven amid heightened tensions in the Middle East, prices of the metal moved up on Monday, remaining over $2,050.
As of 04:35 GMT, spot gold was up 0.2 percent at $2,053.69 per ounce, having gained the most on Friday since December 12. Futures for US gold increased by 0.3 percent to $2,057.70.
As Israel persisted in its aggressive onslaught against Hamas, the war entered its 100th day. Meanwhile, the Houthi militia’s promise of retaliation for American airstrikes on Yemen raised the possibility of further escalation in the Middle East.
News Updates
Jio Financial Services Q3 earnings: NII of Rs 269 crore and net profit of Rs 293 crore
The newly listed subsidiary of Reliance Industries, Jio Financial Services, recorded a net profit of Rs 293 crore for the December quarter of the current financial year on January 15, down from Rs 668 crore in the previous quarter.
For the quarter, the company’s net interest income was Rs 269 crore. In its second quarterly report following its market listing in August 2023, the company stated that its total revenue was Rs 413 crore and its total interest income was Rs 414 crore. The business also announced the appointment of two new senior management positions.
With $38.45 billion in exports, India’s merchandise trade deficit shrank to $19.8 billion in December.
The commerce ministry announced on January 15 that India’s merchandise trade deficit decreased to $19.8 billion in December 2023 from $23.14 billion in the same month the previous year.
After decreasing over the prior few months, goods exports growth reached the positive region coming in at $38.45 billion in December 2023 compared to $38.08 billion in the same month last year, but merchandise imports declined 4.9 percent on-year. According to Commerce Secretary Sunil Barthwal, India is outpacing international trade trends. Additionally, we anticipate increased export volumes in the final quarter of the current fiscal year.”
Polycab India increases 5% and maintains its gains in clarifying I-T notices.
Polycab India extended its gains from the previous session on January 15, closing at Rs 4,198, up 5%. The company had explained that the income tax authority had not sent a demand notice.
On January 12, the stock recovered by 3% from its previous 21% decline following the announcement that the IT department had found “unaccounted cash sales” during a search of more than 50 corporate locations.
Polycab India management explained in an exchange filing on January 12 that the company had not received written information regarding the conclusions.
“The corporation will continue to work closely with the IT department in this area, even though the post-search procedures will unfold naturally. The company’s financial condition has not been materially harmed, according to management.
Taking Stock: Investors gain Rs 3 lakh crore as Sensex and Nifty close at new highs.
On January 15, the Indian benchmark indexes continued their winning streak into their fifth session. The Sensex and the Nifty reached new highs due to widespread buying fueled by gains in information technology sectors and strong earnings.
The Nifty closed the day 203.00 points, or 0.93 percent, at 22,097.50, its best closing to date, while the Sensex finished the day 759.49 points, or 1.05 percent, higher at 73,327.94. The indices got off to a good start and reached record highs of 73,402.16 and 22,115.55 despite conflicting global cues. Investing in the names of oil and gas, finance, and information technology drove the gains.
According to RBI draft guidelines, Fintech SROs should be development-focused and free from outside interference.
In a draft set of rules released on January 15, the Reserve Bank of India (RBI) stated that Self-Regulatory Organisations (SROs) serving the fintech industry should be development-focused, impartial arbiters of disputes, and free from external interference.
SROs for the Fintech industry should also be accurate representations of the field, motivators for members to follow regulatory priorities, and information repositories.
The norms state that SROs in the fintech industry are supposed to function impartially, responsibly, and with credibility while being supervised by the regulator. By the end of February, stakeholders and the general public are encouraged to provide comments or suggestions on the proposed framework, according to the central bank.
Stocks in news
Jio Financial Services: For the quarter that ended in December of FY24, the company’s consolidated profit was Rs 293.82 crore, down from Rs 668.2 crore the previous quarter. The company’s total operating revenue was Rs 413.6 crore as opposed to Rs 608 crore over the same time. In Q3FY24, dividend income was zero, while it was Rs 216.85 crore in Q2FY24.
PNC Infratech: To sell 12 road assets in Uttar Pradesh, Madhya Pradesh, Karnataka, and Rajasthan, PNC Infratech and its subsidiary PNC Infra Holdings have finalised agreements with Highways Infrastructure Trust (HIT), an Infrastructure Investment Trust (InvIT). Together with the earn outs, the transaction has an enterprise value of Rs 9,005.7 crore.
Angel One: The retail stock broking company reported a net profit of Rs 260.3 crore for the October–December fiscal year of FY24, up 14.2 percent from the same time the previous year. Operational revenue shot up to Rs 1,059 crore, up 41.5 percent YoY.
Rail Vikas Nigam: For the supply, installation, testing, and commissioning of 11 KV line-related works in Jabalpur, RVNL was the lowest bidder (L1). M P Madhya Kshetra Vidyut Vitaran Company has given the contract, which is for a 24-month duration.
Aster DM Healthcare: Affinity Holdings and Alpha GCC Holdings intend to finalise the sale of a stake in the GCC (Gulf Co-Operation Council) business as soon as possible, according to Aster DM Healthcare. The Board intended to explore paying its shareholders a dividend of between Rs 110 and Rs 120 per share, or 70–80% of the $903 million upfront consideration.
Sarda Energy & Minerals: The business has been awarded a contract to construct a 50 MW DC solar power plant in Chhattisgarh to supply the captive needs of the mining and production facilities. The contract is worth Rs 150 crore.
Zomato: Through open market transactions, Motilal Oswal Mutual Fund has sold 4.5 crore equity shares, or 0.51 percent of paid-up equity, in the massive meal delivery company. At an average price of Rs 138.15 per share, these shares were sold. Motilal Oswal Flexi Cap Fund owned 15.94 crore shares, or 1.83 percent, of Zomato as of December 2023.
Usha Martin: A deal has been reached for the purchase of 50% of the share capital of Tesac Usha Wirerope firm (TUWCL), a step-down joint venture of the firm, from Kobelco Wire Company. USSIPCL is a subsidiary of the company operating in Thailand. The deal will set you back Baht 74.45 million.
BLS International Services: For an enterprise value of euro 50 million (Rs 450 crore) and additional milestone-based payments, the company has entered into a definitive Share Purchase Agreement through its wholly owned subsidiary BLS International FZE, UAE, to acquire a 100% stake in iData Danismanlik Ve Hizmet Dis Ticaret Anonim Sirketi and its wholly owned subsidiaries. A well-known company with its headquarters in Turkey, iData focuses on providing consular and visa services.
Hi-Tech Pipes: At an average price of Rs 148.5 per share, promoter Ajay Kumar & Sons sold 24 lakh equity shares, or 1.75 percent of the firm. But at the same price, 14 lakh equity shares in the company were chosen by Bandhan Core Equity Fund.
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