Sensex 600 points down, Nifty below 17,600; IT, Bank under pressure

Top gainers/losers at this hour

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Delhi weekend curfew update: CM Kejriwal wants to end curbs

Delhi chief minister Arvind Kejriwal has sent a recommendation to Lieutenant Governor Anil Baijal to end the weekend curfew in the national capital, ANI reported on Friday.

The decision to ease the restrictions was taken in view of declining number of Covid cases in the city. 

Ashish Kacholia buys shares in tablewares maker, volume spurts

Ace investor has added La Opala RG stock in its portfolio in Q3FY22. The information came to public notice when Ashih Kacholia’s name appeared in La Opala RG shareholding pattern for recently ended December 2021 quarter. In La Opala RG shareholding pattern for October to December 2021 quarter, Ashish Kacholia holds 1.04 per cent stake in the tablewares maker and marketer company. After revelation of this information, market gave sharp reaction and volume in the new Ashish Kacholia stock spurt to the tune of 8.79 folds.

Adani Wilmar IPO price band announced as issue opens next week

The three-day initial public offering (IPO) of edible oil major Adani Wilmar Ltd will open next week on Thursday, January 27. The company has fixed a price band of ₹218-230 a share for its ₹3,600-crore initial share sale that will conclude on January 31. The bidding for anchor investors will start on January 25.

Key details here.

Banks drag down Sensex

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Gold prices edge higher on weaker yields, set for second weekly gain

Gold prices edged higher on Friday and were set for a second weekly gain, as safe-haven demand and lower U.S. bond yields lifted the metal’s appeal, while investors look forward to a Federal Reserve meeting for clues to its tightening timeline.

Spot gold was up 0.1% at $1,840.59 per ounce, as of 0414 GMT, inching towards Thursday’s two-month high of $1,847.72. U.S. gold futures dipped 0.1% at $1,840.80.

Benchmark U.S. 10-year Treasury yields fell, reducing the opportunity cost of holding non-yielding bullion.

India’s bond market has $30 billion riding on index inclusion

India is inching toward a major milestone: opening its $1 trillion government bond market to more international investors, one of the most ambitious attempts to attract foreign inflows since the country liberalized its economy three decades ago.

Policy makers have spent months preparing to join global indexes, key benchmarks that increasingly determine how large asset managers allocate their capital. And now, after a series of fits and starts, analysts expect the world’s last big emerging market to finally get the nod this year or early 2023 by providers such as JPMorgan Chase & Co. and FTSE Russell.

Sensex reclaims 59,000

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‘BUY’ Tata Communications

Digital revenue growth showing traction

Tata Communications’ (TCom) Q3FY22 data business net revenue grew only 2.2% YoY, but green shoots are visible with ex-collaboration digital services revenue rising 21.3% YoY. Core Connectivity saw lower revenue growth of 1.3%, but TCom remains confident of 4-5% annual growth in the segment. The company is accelerating hiring (plans >1,000 new hires in FY23), mostly in sales and technical department, providing signs of its rising aggression. Large deal orderbook growth was strong in Q2FY22, which normalised in Q3FY22, and is only a temporary setback, in our view. TCom is in a sweet spot with corporates looking to significantly invest in upgrading their networks, and adoption of next-gen connectivity. TCom’s ability to provide digital services only adds to TAM. 

We have cut our EBITDA estimates for FY22E / FY23E by 4.7% and 2.4%. Maintain BUY with a revised TP of Rs1,680 (from Rs1,750) as we roll over valuation to FY24E, but cut EPS multiple to 20x (from 22x). 

‘BUY’ CEAT: YES Securities

Moderation in capex guidance is positive

CEAT 3QFY22 results missed estimates led by weak volumes (~2% QoQ decline due to weak replacement/OE demand) and RM pressure (~4% increase in RM basket). This as a result led to record low EBITDA margins at 5.5% (‐340bp QoQ). However, we expect reversal in margins to normalized level at 10‐11% gradually over FY23/24 led by 1) growth in replacement/exports volume and 2) focus on market share gains in high margin segments like 2W, PCR, OHT (~60% mix over next 4‐5 years). CEAT has prioritized high margin segments such as exports and OHT over TBR (being a low ROCE biz). Hence, the management has cut capex guidance by Rs2b for FY22 to Rs8b and FY23 at Rs7.5b, which should limit the increasing debt level (expect to peak by FY23).

Nearterm challenges like RM inflation pass through (need another ~5% price hike to offset the same) and increased debt level to 0.7x D/E (v/s 0.6x in 1HFY22) are key variable to watch for over FY22/23. CEAT is a play on i) healthy replacement/OE outlook going forward as supply chain normalizes, ii) timely capacity addition and iii) focus on margin lucrative segments. We have cut FY23 EPS by ~21% while have maintained FY24 EPS. We maintain ‘BUY’ on the stock with Price Target at Rs1,471 based on ~15x FY24 EPS.

Current valuation at ~16.8x/11.7x of FY23/24 consol EPS do partly factors in above challenges. 

Barring FMCG, all sectoral indices in the red

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24 of 30 Sensex stocks in the red

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Nifty opens below 17,600 

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Markets open in the red

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Sensex in pre-open

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Nifty in pre-open

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Stocks to Watch: RIL, HDFC Life, HUL, Vodafone Idea

Here is the list of the top 10 stocks that are likely to be in focus on Friday.

Bitcoin falls below $40,000, ether, dogecoin, Solana, other crypto prices today also crash

Bitcoin price today continued the declining trend by trading below $40,000 level, hit by investors’ weakening sentiment. The world’s most popular and largest cryptocurrency by market value tanked 5% to $39,749. Bitcoin has slipped more than 10% since the start of this year (year-to-date or YTD).

Rakesh Jhunjhunwala trims stake in this PSU stock after zero return in Q3

After getting zero return in Q3FY22 from the PSU stock — Steel Authority of India Limited or SAIL — Big Bull Rakesh Jhunjhunwala has trimmed his stake in the Navratna company during October to December 2021 quarter. As per the shareholding pattern of SAIL for Q3 FY2021-22, Rakesh Jhunjhunwala has cut down his stake in the company from 1.76 per cent to 1.09 per cent.

Day trading guide for Friday 

4 stocks to buy or sell today — 21st January

Asian markets fall after weak showing on Wall St, oil tumbles

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