Stock market recap 13 january 2021
Nifty50: 14,564 ▲ 1.4 (0.0%)
Sensex: 49,492 ▼
24.7 (-0.0%)
After a gap-up opening,
markets saw selling pressure and declined rapidly. However, they did see some
buying interest at lower levels during the second half of the day and closed
nearly flat.
Among the sectoral
indices, Nifty PSU Bank (+3.2%) and Nifty Auto (+0.8%) were the top gainers,
whereas Nifty Pharma (-0.9%) and Nifty Realty (-0.3%) were the top losers.
|
Top gainers |
Today's change |
|
M&M |
▲ 5.6% |
|
SBI |
▲ 4.6% |
|
Adani Ports |
▲ 4.4% |
|
Top losers |
Today's change |
|
Bajaj Finance |
▼ 2.9% |
|
Shree Cement |
▼ 2.8% |
|
HDFC |
▼ 2.7% |
MARKET RECAP
IT majors post strong Q3 results
Infosys posted net profit of ₹5,197 crore, better than street estimates of ₹5,060 crore. On the back of continued strong performance, it has raised its full-year revenue guidance to 4.5–5% (from 2–3% earlier) and for operating margin guidance to 23–24% (from 21–23% earlier). Its shares have gained nearly 10% in this month, ahead of the results.
Wipro’s net profit stood at ₹2,968 crore, higher than the estimated ₹2,551 crore. Ahead of the results, its shares have gained nearly 19% this month.
USFDA approves Granules India’s diabetes drug
In 2020, shares of Granules India saw high investor interest and rose over 180%. The company is expected to announce its Q3 results on 28 January. Its shares gained 1.7% today.
SBI gains as PSU banks surge
SBI (+4.6%) was among
the top gainers in the Nifty50 today and has seen high investor interest over
the last two days.
The street is
factoring in the earnings recovery,
market shares gains led by the bank’s retail/digital focus and better growth
outlook. Shares of other public sector banks that gained today were Bank of
Baroda (+6.5%) and Canara Bank (+3.7%).
Airtel zooms on 100% FDI approval
Bharti Airtel surged
6% intraday after the Department of Telecommunications approved 100% FDI investments
in its downstream companies. The stock posted a modest gain of 1.8% at the
closing.
For Q3, the street is
expecting Airtel to lead subscriber addition given
that it is in a sweet spot compared to Vodafone Idea, which is witnessing a
churn and challenges faced by Jio due to farmer protests.
The markets have been rising for 10 weeks straight. Such an extended rise
without any corrections is rarely seen and indicates the strength of the bulls.
That said, it will be interesting to see the impact of the CPI inflation
numbers, which will be announced today. The street expects the number to drop to 5.3% from
6.9% seen in November. Falling vegetable prices (due to a better crop) are
expected to curb overall inflation.
Interestingly, at 5.3%
the CPI will be comfortably below RBI’s upper tolerance level of 6%. Meanwhile,
market expectations for the IIP reading (which will also be announced today)
are not that encouraging. It is expected to drop to 1.1% versus 3.6% in
November.
What
is FDI?
A
foreign direct investment (FDI) is an investment wherein a foreign entity takes
controlling ownership in a local business. With FDI, the foreign
entity brings to table its knowledge, management skills and technology along
with capital.
Disclosures and Disclaimer
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 @ January 13, 2021
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