Sensex ends 308 pts up at 48,177, Nifty at 14,133; Nifty metal surges 5%
S&P BSE MidCap index touched record high in the intra-day trade of 18,435. On the sectoral front, Nifty IT index closed at record high
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9:04 AM
Sensex rises over 100 points in pre-open session
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Bitcoin trading at $32,990 after recording high of $34,800 on Sunday
Bitcoin was trading at $32,990 in Asia on Monday, after soaring to a record high of $34,800 on Sunday. The digital currency has advanced some 800% since mid-March as more traders and investors bet it is on its way to becoming a mainstream payment method. The latest milestone for the world's most popular cryptocurrency comes less then three weeks after it crossed $20,000 for the first time ever on Dec. 16. (Source: Reuters)
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BROKERAGE VIEW :: MOFSL on Indian Energy Exchange
CMP: Rs 220 | TP: Rs 255 (+16%) | Reco: Buy
>> In 3QFY21, electricity volumes grew 61% YoY to ~20BU. While power demand is recovering, volumes on IEX by itself are impressive. Based on initial data from POSOCO and the Ministry of Power, India’s power demand for the quarter is estimated to have risen 6.5% YoY, with a generation of 337BUs. This implies a 5.9% market share for IEX for the quarter (v/s a 4% share in FY20).
>> As per our analysis, DAM volumes from the country’s northern (Punjab, Rajasthan) and southern (Andhra Pradesh) regions has seen a sharp rise during the quarter. This could partly be attributable to higher growth in peak demand within the northern region. While an uptick in merchant prices (as demand improves) and the large base of 4QFY20 needs to be watched, we conservatively revise our FY21E electricity volume/EPS estimates by 10%/8% given its strong performance. Rolling forward to 30x Dec’22E EPS, we maintain our Buy rating with a TP of INR255/share.
>> In 3QFY21, electricity volumes grew 61% YoY to ~20BU. While power demand is recovering, volumes on IEX by itself are impressive. Based on initial data from POSOCO and the Ministry of Power, India’s power demand for the quarter is estimated to have risen 6.5% YoY, with a generation of 337BUs. This implies a 5.9% market share for IEX for the quarter (v/s a 4% share in FY20).
>> As per our analysis, DAM volumes from the country’s northern (Punjab, Rajasthan) and southern (Andhra Pradesh) regions has seen a sharp rise during the quarter. This could partly be attributable to higher growth in peak demand within the northern region. While an uptick in merchant prices (as demand improves) and the large base of 4QFY20 needs to be watched, we conservatively revise our FY21E electricity volume/EPS estimates by 10%/8% given its strong performance. Rolling forward to 30x Dec’22E EPS, we maintain our Buy rating with a TP of INR255/share.
8:45 AM
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Stocks to watch: RCFL, Tata Motors, RIL, BEML, Cadila Healthcare
Rashtriya Chemical: The government is planning to sell 10 per cent stake in Rashtriya Chemical and Fertilizers and has invited bids from merchant banker and legal firms for managing the share sale process.
Cadila Healthcare: DGCI has approved phase 3 clinical trials of Ahmedabad-based Cadila Healthcare’s ZyCov-D. The company will now be initiating Phase III clinical trial in around 30,000 volunteers. READ MORE
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BROKERAGE VIEW :: MOFSL on Federal Bank
CMP: Rs 68 | TP: Rs 80 (+18%) | Reco: Buy
>> FB posted a slight increase in sequential loan base, driven by healthy loan growth in its retail asset portfolio, led by gold loans. The bank’s liability franchise remains strong. CASA mix is improving, with retail deposit mix over 90%, which is likely to keep margin steady. It has maintained one of the highest LCRs among banks. On the asset quality front, PCR has strengthened to ~66% and the management expects restructuring of up to 3% of loans as collection efficiency has improved to 95% from Sep’20. We expect credit cost to remain elevated as slippages would increase during 2HFY21. We maintain our Buy rating with a TP of INR80 per share (0.9x Sep-22E ABV).
>> FB posted a slight increase in sequential loan base, driven by healthy loan growth in its retail asset portfolio, led by gold loans. The bank’s liability franchise remains strong. CASA mix is improving, with retail deposit mix over 90%, which is likely to keep margin steady. It has maintained one of the highest LCRs among banks. On the asset quality front, PCR has strengthened to ~66% and the management expects restructuring of up to 3% of loans as collection efficiency has improved to 95% from Sep’20. We expect credit cost to remain elevated as slippages would increase during 2HFY21. We maintain our Buy rating with a TP of INR80 per share (0.9x Sep-22E ABV).
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BROKERAGE VIEW :: MOFSL on M&M
CMP: Rs 733 | TP: Rs 840 (+15%) | Reco: Buy
>> Since Apr’20, MM has decided to exit five loss-making businesses as part of its decision to exit non-strategic, loss-making businesses. SYMC has been the biggest pain point and filing for bankruptcy is the last option it has to sell it.
>> MM is the best proxy of a rural recovery in the Auto segment, given its strong footing in Tractors and LCVs. For the SUV business, we are not building in any major traction and have not built-in benefits from any upcoming product launches.
>> While MM’s core business would recover faster, its focus on tightening capital allocation could act as a re-rating catalyst. Hence, we see twin levers of EPS growth and re-rating.
>> The stock trades at implied core P/E of 15x/12.9x FY22E/23E EPS. Maintain Buy with a SoTP-based TP of INR840 per share (Mar-23E SoTP-based).
>> Since Apr’20, MM has decided to exit five loss-making businesses as part of its decision to exit non-strategic, loss-making businesses. SYMC has been the biggest pain point and filing for bankruptcy is the last option it has to sell it.
>> MM is the best proxy of a rural recovery in the Auto segment, given its strong footing in Tractors and LCVs. For the SUV business, we are not building in any major traction and have not built-in benefits from any upcoming product launches.
>> While MM’s core business would recover faster, its focus on tightening capital allocation could act as a re-rating catalyst. Hence, we see twin levers of EPS growth and re-rating.
>> The stock trades at implied core P/E of 15x/12.9x FY22E/23E EPS. Maintain Buy with a SoTP-based TP of INR840 per share (Mar-23E SoTP-based).
8:36 AM
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Trading strategies on Bharat Forge and Escorts by Vaishali Parekh
BUY BHARAT FORGE | CMP: Rs 538.10 | TARGET: Rs 585-590 | STOP LOSS: Rs 505
The stock has witnessed a short correction from 565 levels and has bottomed out near 505-510 levels, forming a good base. It is currently indicating a momentum pick up to improve the bias with a trend reversal. The RSI also has shown a trend reversal to signal a buy and has got strength to carry on the momentum in the coming days. We suggest to buy and accumulate this stock for an upside target of Rs 585-590, keeping the stop loss near Rs 505 levels. READ MORE
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'Nifty eyeing 14,200; broader markets to outrun benchmarks'
Although there was some muted action seen in key indices during the previous week, the broader market just took off in the last couple of days. Hence, the real action lies in the broader end of the spectrum, which may continue to provide better trading opportunities. Traders are advised to keep focusing on thematic bets and should ideally avoid aggressive bets in indices. READ MORE
8:27 AM
FIIs, DIIs buy shares worth nearly Rs 600 crore on Friday
8:24 AM
Rupee check
Source: Bloomberg
8:19 AM![]()
Oil prices slip after OPEC warns of downside risks to demand
>> Oil prices edged lower on Monday, the first day of 2021 trading, ahead of a meeting of OPEC and allied producers to discuss output levels for February with fears for first-half demand seeping into the market as the coronavirus pandemic lingers.
>> Brent crude for March was at $51.76 a barrel, down 4 cents or 0.08% while US West Texas Intermediate crude for February fell 9 cents, or 0.2%, to $48.43 a barrel.
>> Mohammad Barkindo, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), said on Sunday that while crude demand is expected to rise by 5.9 million barrels per day (bpd) to 95.9 million bpd this year, the group sees plenty of downside demand risks in the first half of 2021.
>> Mohammad Barkindo, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), said on Sunday that while crude demand is expected to rise by 5.9 million barrels per day (bpd) to 95.9 million bpd this year, the group sees plenty of downside demand risks in the first half of 2021.
"We are only beginning to emerge from a year of deep investment cuts, huge job losses and the worst crude oil demand destruction on record," he said.
(Source: Reuters)
(Source: Reuters)
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China Data Watch :: China's Dec factory activity growth slows
>> The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 53.0 in Dec from November’s 54.9
>> Activity in China’s factory sector rose in December, however, increasing cost pressures slowed the pace of expansion.
>> Analysts polled by Reuters had forecast the headline reading would slip to 54.8
(Source: Reuters)
>> Activity in China’s factory sector rose in December, however, increasing cost pressures slowed the pace of expansion.
>> Analysts polled by Reuters had forecast the headline reading would slip to 54.8
(Source: Reuters)
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SGX Nifty suggests fresh lifetime-highs
>> At 8:12 am, the index was ruling 95 points higher at 14,111 levels, indicating a fresh record high for domestic indices.
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First Published: Jan 04 2021 | 7:50 AM IST
