Stock Market LIVE: Nifty falls below 18,000 at open; Bank, Auto, IT drag

Tata Motors sheds at open and is among the biggest laggards; drops 2%

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China’s stretched health system braces for peak in COVID infections

China is expecting a peak in COVID-19 infections within a week, a health official said, with authorities predicting extra strain on the country’s health system even as they downplay the disease’s severity and continue to report no new deaths.

In the face of a surging outbreak and widespread protests against its “zero-COVID” regime of lockdowns and testing, China began dismantling it this month, becoming the last major country to move towards living with the virus.

Its containment measures had slowed the economy to its lowest growth rate in nearly half a century, jamming global supply chains and trade. As Chinese workers increasingly fall ill, more disruption is expected in the short term before the economy bounces back later next year. (Reuters)

Indices fall sharply at open with Sensex going below 60,500 and Nifty below 18,000

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Reliance Securities Stock to Focus for Today: GPIL

STOCK IN FOCUS

GPIL (CMP 347): We have a positive stance on GPIL considering a) strong demand domestically for the company’s high-grade pellets that command a premium over other makers and b) debt-free balance sheet. By FY24E, GPIL is slated to have net cash to the tune of Rs15bn. We have a BUY rating on GPIL, with a 12-month SOTP-based Target Price of Rs415.

Intraday Picks

ASIANPAINT (PREVIOUS CLOSE: 3,089) BUY

For today’s trade, long position can be initiated in the range of Rs3,065- 3,045 for the target of Rs3,130 with a strict stop loss of Rs3,014.

SHREECEM (PREVIOUS CLOSE: 23,790) BUY

For today’s trade, long position can be initiated in the range of Rs23,580- 23,460 for the target of Rs24,210 with a strict stop loss of Rs23,190.

BATAINDIA (PREVIOUS CLOSE: 1,647) BUY

For today’s trade, long position can be initiated in the range of Rs1,630- 1,620 for the target of Rs1,675 with a strict stop loss of Rs1,602.

INDIA BONDS-Bond yields likely to rise ahead of weekly debt auction

Indian government bond yields are expected to rise at open on Friday, ahead of a fresh supply of debt through weekly auction later in the day.

The benchmark 10-year yield is likely to move in a 7.30%-7.34% band till the auction, a trader with a private bank said. The yield rose to end at 7.3164% on Thursday, its highest since Nov. 21.

New Delhi aims to raise 280 billion rupees ($3.38 billion) through sale of bonds, which includes 120 billion rupees of the benchmark bond.

“Sentiment is turning cautious as we move closer towards the year-end, and we may see some impact on demand at the auction today,” the trader said. (Reuters)

Sensex fall sharply at the preopen session; Landmark Cars and Abans Holdings to debut on the bourses today

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Japan’s Nikkei slips as chip stocks weigh, set for worst week since June

Japan’s Nikkei share average dropped on Friday and headed for its worst week since mid-June, with chip-related stocks leading the day’s decline in line with a slump on Wall Street overnight.

Shippers and other economically sensitive stocks also languished amid worries about continued Federal Reserve policy tightening that could trigger a recession.

The Nikkei dropped 1.12% to 26,210.69 as of the midday break, while the broader Topix lost 0.67% to 1,895.30. Of the Nikkei’s 225 components, 175 fell, 42 rose and eight were flat.

Utilities were a bright spot, with Tokyo Electric Power Company Holdings (TEPCO) surging 6.21% to become the Nikkei’s best performer, after the Japanese government adopted a new policy promoting greater use of nuclear energy. The Topix’s electric and gas subsector rallied 2.66%. (Reuters)

Buy or sell: Vaishali Parekh recommends 2 stocks to buy today

Vaishali Parekh of Prabhudas Lilladher has recommended two stocks to buy today. Here we list out full details in this regard:

1] Lupin: Buy at ₹766, target ₹787, stop loss ₹755; and

2] REC: Buy at ₹112, target ₹117, stop loss ₹110. (Read More)

Geojit Financial Services on today’s market: There is an element of overreaction in the market to the Covid news

Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: An interesting development in the market is that despite FII and DII buying of ₹928 and ₹2206 crores respectively yesterday Nifty corrected by 71 points. This is due to long unwinding in some key index stocks. The global market backdrop continues to be weak due to the strong economic data from the US. The paradox of good economic news turning out to be bad news for markets is playing out. Data from US on consumer confidence, jobless claims, and Q3 GDP numbers surprised on the upside indicating continuation of the hawkish monetary stance from the Fed. The high market volatility of the last 6 days is likely to continue. There is an element of overreaction in the market to the Covid news. Even though a ‘Santa Claus rally’ appears unlikely, investors can buy high-quality stocks in telecom, banking and capital goods on dips.

IFCI shareholders approve raising up to ₹1,000 cr

Infrastructure term lender IFCI Ltd on Thursday said its shareholders have okayed a proposal to raise up to ₹1,000 crore through bonds and other instruments.

The resolution was passed at the company’s annual general meeting (AGM) held on Thursday.

The shareholders authorised the board of directors to raise funds, including via bonds and non-convertible debentures, through private placement in one or more tranches, up to the amount of ₹1,000 crore, IFCI said in a regulatory filing. (PTI)

Cryptocurrency prices today: Bitcoin flat; dogecoin, Cardano, XRP surge

In cryptocurrencies, Bitcoin price today dropped with the world’s largest and most popular digital token trading almost flat with a negative bias at $16,810. The biggest token is down by three-quarters from its record high of $69,000. The global cryptocurrency market cap today remained below the $1 trillion mark, as it was almost flat in the last 24 hours to $845 billion, as per the data by CoinGecko.

On the other hand, Ether, the coin linked to the ethereum blockchain and the second-largest cryptocurrency, was almost flat at $1,220. Meanwhile, dogecoin price today was trading about a 5% higher at $0.07 whereas Shiba Inu was up at $0.000008. (Read More)

Stocks to Watch: Landmark Cars, Abans Holdings, Reliance, Yes Bank, JK Cement, Bank of Maharashtra, IFCI, Ramco Systems, Mahinidra Lifespace Developers, and Ajanta Pharma

NSE continues to keep Indiabulls Housing Finance on the list of banned securities under the F&O segment for Friday trading as it has crossed 95% of the market-wide position limit. (Read More)

LIC’s raises its stake in Info Edge crosses 5% mark through an open market deal

The Indian state-owned insurance group and investment company, Life Insurance Corporation (LIC) has announced today that its shareholding in Info Edge (India) Ltd has increased from 64,43,921 to 64,69,921 equity shares increasing its shareholding from 4.988% to 5.008% of the paid-up capital of the said company. LIC said through open market purchase, its holding in Info Edge crossed 5% on 21.12.2022 and the acquisition of shares was done at an average cost of ₹4790.76.

With an additional investment of more than ₹12 crore, LIC claimed that its shareholding in Info Edge has risen to 5%. For ₹12.45 crore, an additional 26,000 shares of Info Edge were acquired. Info Edge is India’s premier online classified company with a business portfolio of brands like naukri.com, 99acres.com, jeevansathi.com as well as shiksha.com. (Read More)

JK Cement enters paint segment, acquires 60 pc stake in Acro Paints in ₹153-cr deal

JK Cement on Thursday announced its foray into the paints business by acquiring a 60 per cent stake in Rajasthan-based Acro Paints in a ₹153 crore deal.

Its wholly-owned subsidiary JK Paints and Coatings Ltd has entered into a share purchase agreement with Acro Paints Ltd and its shareholders to acquire a 60 per cent controlling stake in the company.

The “remaining 40 per cent shall be acquired over a period of 12 months as per the definitive agreement entered between the parties”, a joint statement said.

Acro Paints is a manufacturer of architectural and high-performance paints and coatings.

“This acquisition is a step towards fast-tracking JK Cement’s entry into the paints business, expanding its product offerings and potentially foray into new markets,” it added. (PTI)

Reliance Jio arm deposits ₹3,720 crore in escrow account to acquire Reliance Infratel assets

A subsidiary of billionaire Mukesh Ambani’s Reliance Jio has deposited ₹3,720 crore in an escrow account to acquire assets of Reliance Infratel. The move follows the National Company Law Tribunal’s approval and directions issued last month.

According to people in the know, the India’s largest carrier has deposited the amount in an escrow account with the State Bank of India as of Thursday.

With this, Jio will have completed the acquisition of Anil Ambani-managed Reliance Communications’ tower and fibre assets that were housed under Reliance Infratel. The assets include over 43,500 towers and over 170,000 km of fibre. (Read More)

Radiant Cash Management IPO: Key things to know as issue opens today. Should you subscribe or skip?

The three-day-long initial public offer (IPO) of Radiant Cash Management Services will open for public subscription from Friday, December 23, till Tuesday, December 27, 2022. The company has fixed a price band of ₹94 to ₹99 a share for its ₹388-crore initial share sale.

Radiant Cash Management IPO comprises a fresh issue of shares worth up to ₹60 crore and an offer for sale (OFS) of 33,125,000 shares by promoter David Devasahayam and private equity firm Ascent Capital Advisors India.

“The Retail Cash Management (RCM) market will be bolstered by the growth in organized retail sector and the corresponding outsourcing potential. Radiant also has ability to cross sell value-added services such as network currency management and cash processing services. Based on FY22 earnings the company is valued at 27.8x P/E, 17.2x EV/EBITDA and 3.5x EV/Sales,” said Reliance Securities. (Read More)

Tesla share price drops 10%, on track for worst month ever

Tesla Inc shares are on track for their worst month ever as a sell-off deepened on Thursday over worries about softening demand for electric cars and Chief Executive Elon Musk’s distraction with Twitter. The stock dropped almost 10% on Thursday to its lowest level since September 2020 after the automaker’s website showed it was offering $7,500 discounts on Model 3 and Model Y electric vehicles delivered in the United States this month.

Tesla’s stock has tumbled 36% so far in December, putting it on track for its worst-ever monthly performance. By comparison, Tesla’s shares dropped 22% in March 2020, when the coronavirus pandemic tipped financial markets into a tailspin. (Read More)

Rupee rises 5 paise to 82.79 against US dollar

The rupee appreciated by 5 paise to close at 82.79 against the US dollar on Thursday amid a weak greenback in the overseas markets.

Losses in domestic stocks and firm crude oil prices, however, restricted the rupee’s gain, forex dealers said.

The local currency opened higher at 82.78 at the interbank foreign exchange market after overnight losses in the greenback on improved risk sentiment.

The rupee moved in the range from 82.64 to 82.79 in the day trade before settling at 82.79 to a dollar, showing gains of 5 paise over its previous close.

The rupee had weakened by 14 paise to settle at 82.84 on Wednesday. (PTI)

Reliance Strategic Business Ventures buys 23.3% stake in US-based Exyn for $25 mn

Reliance Industries-backed Reliance Strategic Business Ventures (RSBVL) on Thursday acquired a 23.3% stake in Exyn Technologies (Exyn) for a total consideration of $25 million. This deal is expected to have synergies with Reliance’s investments and strategic initiatives in drone, industrial safety and security, and robotics areas. RIL announced the development in its regulatory filing. (Read More)

Amid Covid scare, IMA advises citizens to avoid gatherings, international travel

Amid a rise in Covid cases in some countries, The Indian Medical Association advised citizens to avoid public gatherings such as marriages, political or social meetings as well as international travel. In an advisory issued by the IMA, it also appealed to the citizens to take COVID-19 vaccines, including the precaution dose.

They also asked the citizens to follow Covid-appropriate behaviour such as using masks in public places and maintaining social-distancing norms to “overcome the impending Covid outbreak”. (Read More)

Auto parts makers see US, EU slowdown hurting exports

India’s auto component manufacturers expect export growth to be muted in the last quarter of the fiscal due to the recessionary environment in the US and the EU, while imports of auto parts, particularly electronic components, are expected to stay elevated as domestic demand rises.

In the first half of FY23, North America and Europe together accounted for over 63% of the sector’s total exports. A resurgence of covid-19 in China and Japan does not threaten major supply chain disruptions, although the industry remains cautious in its outlook. (Read More)

Aban Holdings IPO listing date today. Experts see ‘muted’ debut of shares

Shares of Aban Holdings Limited are going to list on Indian bourses today. As per the information available on the BSE website, effective from Friday, December 23, 2022, the equity shares of Abans Holdings Limited shall be listed and admitted to dealings on the Exchange in the list of ‘B’ group of securities. Aban Holdings shares will become available for trade-in special pre-open session today. (Read More)

Landmark Cars IPO listing today. Experts predict ‘flat’ debut of shares

Shares of Landmark Cars Limited are going to list on BSE and NSE on 23rd December 2022 i.e. today. As per the information available on BSE website, effective from Friday, December 23, 2022, the equity shares of Landmark Cars Limited shall be listed and admitted to dealings on the exchange in the list of ‘B’ group of securities.

According to stock market experts, the issue is fully priced with a PE multiple at around 28. They said that in the current market condition it won’t be fair to expect much from the public issue and expected a flat to discounted listing of the IPO. They said that in case of a weak market opening, we may see Landmark Cars shares listing at around 5-7 per cent discount. (Read More)

Yes Bank transfers 24% Dish stake to JC Flowers

In a fresh twist to the Yes Bank-Dish TV case, the private sector bank has transferred its 24.19% stake to JC Flowers Asset Reconstruction Co, along with the underlying loan to Subhash Chandra’s Essel group companies, the bank said in a stock exchange filing on Thursday.

The move is part of the lender’s move to transfer bad loans worth ₹48,000 crore from its books to the asset reconstruction company under the proposed 15-85 structure. With the transfer of Dish’s shares, it will have more flexibility to proceed with the recovery process. (Read More)

US stocks close in the red on Thursday on monetary tightening fears

Wall Street stocks tumbled Thursday, closing in a sea of red after data that indicated a strong labour market and better-than-expected economic growth.

The Dow Jones Industrial Average closed 1.1% down at 33,027.49, while the broad-based S&P 500 Index lost 1.5% to 3,822.39.

The tech-rich Nasdaq Composite Index plunged 2.2% to 10,476.12.

Calling the tumble a “Grinch selloff,” Edward Moya of the OANDA trading platform said the drop came as “better-than-expected US economic data supported the (Federal Reserve’s) case for more ongoing rate increases.”

The Fed has hiked its benchmark lending rate multiple times this year to rein in surging inflation.

Although it moderated its pace of rate increases this month, Fed Chair Jerome Powell has signalled that the central bank’s battle is not yet over, fueling market jitters. (AFP)