Monday, December 23, 2024 | 02:07 PM ISTEN Hindi

MARKET WRAP: Financials lift indices, Sensex gains 409 pts; TCS ends flat

All that happened in the markets today

SI Reporter New Delhi

On the sectoral front, the Nifty Metal index rallied the most - up over 2 per cent.

10:43 AM

BROKERAGE VIEW:: ICICI Securities on Power sector

We remain positive on CPSUs in the sector despite this decline in demand as we believe their earnings are based on capacity creation and not utilisation, and they continue to trade at all-time low valuations and high dividend yields. PSUs will take a one-time hit by giving rebate of up to 25% to discoms on fixed charges and lower rates of late payment surcharges (LPS) in Q1FY21, but much of the quantum is expected to recover in FY21 itself through higher expected LPS as states continue to defer payments. Recovery in coal PLFs from Q3FY21 onwards is expected to improve coal offtake, while Coal India’s import substitution initiative will compensate for lost volumes (coal imports in Q1FY21 declined by 30% to 49mnte; CIL has already tied up >18mnte out of these volumes). Top picks are NTPC & Coal India.

10:40 AM

BROKERAGE VIEW:: ICICI Securities on Mishra Dhatu Nigam

Midhani’s Q4FY20 performance was impacted by Covid-19 related concerns. Even in FY21, due to Covid-19, there was a disruption in production activity for 45 days. Subsequently, normal production activities have resumed from May 20, 2020. Despatch of finished materials has already started in May 2020. Backed by a strong order book position, we expect Midhani to report healthy performance, going forward. We value the stock at 22x FY22E EPS with a target price of Rs 260.

10:39 AM

BROKERAGE VIEW:: Edelweiss Securities on Crompton Greaves Consumer Electricals

Crompton Greaves Consumer Electricals is the largest player in the fans segment and continues to leverage its brand equity to expand in to consumer appliances. With the strength of its balance sheet and high positioning in consumer electricals, it is well poised to enter new related categories in electricals space – a key re-rating prospect. We maintain ‘BUY/SO’ with TP of Rs 260.

10:36 AM

BUZZING STOCK:: Can Fin Homes up over 2%

10:35 AM

'Difficult to argue for material upside in the market from current levels'

After not only a strong recovery off the March 2020 lows but even the more recent rally of nearly 15 per cent in the frontline indices over the past six weeks, we think the market is now evenly poised. It adequately reflects the upside from return to economic normalcy, as also the fact that the duration of the pandemic is likely to be fairly prolonged given rising rate of infections, and would thus unquestionably lead to some form of permanent loss in economic output in the foreseeable future. READ INTERVIEW HERE

10:34 AM

MARKET CHECK:: ICICI Bank up 0.4%

10:25 AM

TCS Q1 preview: Covid-19 pandemic to hit earnings; Q2 outlook eyed

The Street, analysts believe, appears to be focusing on recovery path which is also visible in the strong rally in the sector. “We think the markets are still in a mood to overlook any misses given the continued macro uncertainty and even the lack of negatives could trigger positive share price reactions. We believe Q1 should be the low point for revenues, and expect a gradual recovery from Q2FY21 onwards,” wrote Diviya Nagarajan, an analyst at UBS tracking the sector in a July 7 note. READ MORE

10:16 AM

Metal stocks rally: SAIL jumps 6%; Tata Steel, Hindalco, JSPL gain up to 4%

Shares of metal companies rallied up to 6 per cent on the NSE on Thursday. The Nifty Metal index surged around 2.5 per cent and was the top sectoral gainer on the NSE. At 09:42 am, SAIL was trading over 4 per cent higher at Rs 36.85. The stock hit a high of Rs 37.45, up 6 per cent in the early trade. Hindalco was up 3.7 per cent, JSPL was up 3.6 per cent while Hindustan Copper was quoting over 3 per cent higher at Rs 41.15. READ MORE

Nalco rides on London Metal Exchange gains, sees room for more price hikes

10:09 AM

Rupee Opening

Rupee opens higher at 74.94 per US dollar vs Wednesday's close of 75.02/$

10:03 AM

IRB Infra Developers hits 52-week high; stock zooms 84% in one month

Shares of IRB Infrastructure Developers gained 3 per cent and hit a 52-week high of Rs 121.50 on the BSE on Thursday on expectations that earnings may improve going forward as road traffic reaches over 80 per cent of pre-Covid level. The stock of the company, which is the largest private roads and highways infrastructure developer in India, has surpassed its previous 52-week high of Rs 119.70 touched on January 21, 2020. In the past one month, it has zoomed 84 per cent as compared to 7.6 per cent rise in the S&P BSE Sensex. READ MORE