Sensex slips 81 pts ahead of FY21 advance GDP estimate; midcaps outperform

Overall, market breadth remained in the favour of the bulls with nearly two stocks rising against a stock that declined at the bourses

10:41 AM

Barring Mphasis, Naukri, all constituents of Nifty IT in the red

10:41 AM

IPO street: From Zomato to InMobi, 2021 could be the year of start-ups

Plans of companies such as Zomato, Policybazaar, Grofers and InMobi to launch an initial public offering (IPO) in 2021 could kick off a transition of successful start-ups from private to public capital. The country has realised the potential of start-ups that have disrupted traditional businesses (or ways of doing business) and have garnered large market share, across segments. READ MORE

10:31 AM

MARKET UPDATE:: Sensex off day's high

10:25 AM

Dixon Tech gains 5% on pact with boAt for new twin wireless speakers

Dixon Technologies (India) shares traded 5 per cent higher at Rs 15,214, also their fresh record high, on the BSE on Thursday after the company announced that it has entered into an agreement with Imagine Marketing Private Limited (boAt) for manufacturing of Twin Wireless Speakers. READ MORE

10:16 AM

BROKERAGE VIEW :: ICICI Securities on Building Material Sector

>> Volume recovery for major branded building material categories may sustain (in fact accelerate QoQ) into Q3FY21 driven by a) impressive growth traction in secondary real estate market, b) pent-up demand seen in renovation / refurbishment segment and c) market share gains (in categories like plumbing pipes and tiles in particular). We, thus, foresee categories like plumbing pipes, MDF, adhesives and construction chemicals, tiles and plywood to recover beyond pre-Covid levels in Q3FY21, while laminate and sanitaryware categories may recover fully with a quarter lag.

>> With expected increase in input cost (driven by higher crude prices), we expect categories like wood panel, tiles and adhesives to witness some correction in their gross margins on a sequential basis. EBITDA margins, however, may remain firm driven by operating leverage and sustained cost rationalisation. We estimate our BM coverage universe to report aggregate revenue / EBITDA / PBT increase of 12.7% / 24.9% / 30.6% YoY, respectively (ex- PIDI: 12.2% / 27.7% / 45.9% YoY) in Q3FY21.

10:13 AM

BROKERAGE VIEW :: ICICI Securities on Real Estate sector

>> The Government of Maharashtra’s Urban Development Department in a notification dated 6th January, 2021 has approved a 50% discount/concession on all the various premiums levied by the government on construction projects till 31st December 2021. This also includes concessions in the premiums levied by all planning authorities/local administrations in Maharashtra. A rider is that developers availing the discount need to bear the stamp duty costs of 5-6% of agreement value on behalf of buyers.

>> While we await the fine print on the exact nature and terms of the FSI/premium waivers, key beneficiaries of the waiver will be developers who have adequate liquidity and have the confidence to launch and sell new projects, especially in the Mumbai city and suburbs.

>> Developers in our coverage universe with significant Mumbai exposure including Oberoi Realty, Godrej Properties, Phoenix Mills, Prestige Estates and Sunteck Realty stand to benefit.

10:12 AM

BROKERAGE VIEW :: Q3 earnings expectations from pharma and healthcare sector

>> We expect pharma and healthcare companies under our coverage to report moderate growth during the quarter ended Dec'20. We expect easing of lockdown to support some recovery in acute portfolio and injectable products. US revenues may witness marginal growth sequentially led by improvement in volumes of injectables, specialty portfolio and new launches. We estimate India business to grow in high single digit as seen in secondary sales data.

>> We forecast the EBITDA margin of covered companies at ~22% (+130bps YoY) led by revenue growth and cost control measures. Hospitals and diagnostic centres can report significant recovery QoQ with rise in occupancy levels and pathology test volumes. Overall, we expect our coverage universe to report ~8% revenue growth.

(Source: ICICI Securities)

10:08 AM

BROKERAGE VIEW :: ICICI Securities on Sobha

CMP: Rs 411 | TP: Rs 505 | Reco: Buy

>> Sobha’s Q3FY21 gross sales volumes of 1.13msf worth Rs8.9bn were up 6% YoY in volume terms and 22% YoY in value terms. A strong QoQ uptick in Bengaluru and continued momentum in Kochi/Gurugram markets has enabled Sobha to cross pre-COVID sales bookings inspite of minimal launches. The company maintains its guidance of achieving a YoY growth in H2FY21 sales bookings on the back of new launches and monetisation of existing inventory.

>> We have raised our FY21/22E volume estimates by 25% to 3.9/4.7msf respectively (earlier 3.2/3.8msf) to reflect the improved performance. We retain our BUY rating with a revised SOTP based target price of Rs505/share (earlier Rs382) as we roll forward to Mar-22 NAV and build in higher sales volumes over FY21-23E. Ability to keep debt levels in check remains the key monitorable.

10:03 AM

Rupee Opening

Rupee opens at 73.11 per US dollar vs Wednesday's close of 73.10/$

9:56 AM

Realty shares rally as Maha govt slashes premium for construction by 50%

Shares of real estate companies were in focus, surging by up to 7 per cent, on the BSE in the early morning trade on Thursday after the Maharashtra government on Wednesday slashed premiums and levies charged on construction by 50 per cent till December 31 2021. The move is expected to give a boost to the real estate sector in the state. READ MORE

9:50 AM

S&P BSE MidCap index hits fresh lifetime high

9:41 AM

GIC Housing Finance sees sharp upswing

9:37 AM

NEWS ALERT :: JSW Steel crude steel production is up 2% at 4.08 mt Vs 4.02 mt (YoY)

9:34 AM

CEAT rises 1.6% on rating affirmation

>> CARE Ratings has reaffirmed its AA/Stable rating to the long-term bank facilities worth Rs 800 crore and A1+ rating to the short-term bank facilities worth Rs 1,150 crore. The rating agency has also reaffirmed A1+ rating to the company’s Commercial Paper worth Rs 350 crore.

9:33 AM

Wendt slides over 5% on report promoters to sell stake

>> Promoters of Wendt to sell up to 4.74 per cent stake in the company via offer for sale on January 7-8. The floor price is set at Rs 2,200 per share.