market recap
Nifty50: 13,981 ▲ 49 (+0.3%)
Sensex: 47,746 ▲
133 (+0.2%)
After the initial
weakness, the markets recovered and scaled new highs. The recovery was
broad-based as 34 of the Nifty50 stocks closed in the green.
Among the sectoral
indices, Nifty Auto (+1.3%) and Nifty Metal (+1.2%) indices were the top
gainers whereas Nifty PSU Bank (-0.2%) and Nifty Pharma (-0.1%) were down
marginally.
|
Top gainers |
Today's change |
|
Ultratech Cement |
▲ 4.4% |
|
Grasim |
▲ 3.0% |
|
Shree Cement |
▲ 2.9% |
|
Top losers |
Today's change |
|
IndusInd Bank |
▼ 1.4% |
|
Sun Pharma |
▼ 1.1% |
|
Axis Bank |
▼ 1.0% |
Paint stocks to see volume recovery
As the economic
recovery gathers momentum, paint companies in the organised sector are expected
to see a volume recovery and
market share gains from unorganised players. Shares of major paint companies
Kansai Nerolac (+9.0%), Akzo Nobel (+4.4%), Asian Paints (+1.4%), Berger Paints
(+1.2%) and Shalimar Paints (+0.5%)—were up today.
Headwinds could come
from the rise in price of inputs such as. crude oil derivatives and titanium
dioxide, which account for over 80% of total input costs. Margins could be
under pressure if companies are not able to fully pass on the rise in input costs
to the customers.
UPL pares debt
Shares of the
agrochemical major were up 2.4% after the company paid off debt to the tune
of $410 million (nearly
₹3,000 crore) in advance, using its cash reserves.
As of Q2, the company
had a gross debt of over ₹31,800 crore. Favourable agri-economy prospects and
agricultural commodity prices are expected to aid the company in further paring
debt.
Sail bucks trend
The country’s largest
steelmaker has seen strong investor interest over the last two months, gaining
over 100% in that period. The street expects an improvement in the demand for steel in
2021 due to increased government spending in the infrastructure space
along with recovery in the auto industry.
In the long term, the
company plans to double its installed capacity to 50 MTPA (million tonne per
annum) by 2030. Further, the company is expected to reduce its debt by nearly
₹10,000 crore in the second half of this fiscal. The stock gained 7.5%
today.
Kalpataru Power and JMC Projects rise on new orders
Kalpataru Power
Transmission has bagged orders worth ₹900 crore in
its T&D (transmission and distribution) business from the overseas market
and domestic EPC (engineering, procurement and construction) orders for laying
pipelines. Its shares rose 3.2% today.
Its subsidiary JMC
projects (where it holds 67.7%) also gained 3.1% after winning orders for
building projects in southern India worth ₹698 crore.
Markets have risen
smartly over the last six trading sessions. However, today’s movement was
peculiar because the day’s open and close are nearly the same, suggesting
indecision. Global cues are positive as Asian and European indices are in the
green. Beginning Friday, auto companies will release December sales volumes.
The street could consider their performance as a lead indicator for demand
after the festive season and whether the pandemic-led pent-up demand has been
exhausted.
Good to know
What
is earnings per share?
It is a company's profit
divided by its number of outstanding shares. If a company earning ₹2 crore in
one year had 20 lakh shares outstanding, its EPS would be ₹10 per share.
Investment in securities markets are
subject to market risks; please read all the related documents carefully before
investing. The securities quoted are exemplary and are not recommendatory. Past
performance is not indicative of future results. Details provided in the above
newsletter are for educational purposes and should not be construed as
investment advice by RKSV group. Investors should consult their investment
advisor before making any investment decision.
Labels: Market Recap
posted by JAVED CHILLIMUTTUR @ December 30, 2020
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