Sensex, Nifty end higher; Auto, Realty, Power advance; HCL Tech top loser

Markets at close

Key share indices ended marginally higher on Monday amid volatility and tracking global markets. Sensex ended 85.88 points lower at 61,308.91, while Nifty settled 52.35 points up at 18,308. Ultratech Cement, Maruti Suzuki were the top gainers, while HCL Tech and HDFC Bank were the laggards. Auto and realty stocks outperformed while banks, IT and financial services, and pharma were under pressure. On the 30-share Sensex, 19 stocks advanced and 11 declined. On the Nifty, Hero MotoCorp, Grasim, ONGC, and Tata Motors were the top gainers, while HCL Tech, Cipla, Axis Bank were among the top losers.

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Dalmia Bharat commences ops at Maharashtra plant acquired via insolvency process

Dalmia Cement (Bharat) Limited (DCBL), a subsidiary of Dalmia Bharat Limited, on Monday announced the commencement of commercial production at its Murli plant in Chandrapur district, Maharashtra, thereby adding 2.9 million tonne to the company’s installed cement capacity of 35.9 MT.

Top gainer/losers

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UltraTech Cement Q3 results

UltraTech Cement, an Aditya Birla Group company, today reported a consolidated net profit of ₹1,708 crore for the December quarter (Q3FY22), which is an increase 8% from a year ago. The same was ₹1,584 crore in the last year period. 

Dolly Khanna portfolio: Multibagger stock near lifetime high 

Dolly Khanna portfolio stock and one of the multibagger stocks in 2021 has hit 5 per cent upper circuit today and reach close to its lifetime high of ₹264 per share levels. According to stock market experts, Dolly Khanna share is skyrocketing because of the price appreciation of soya oil in international markets. They said that recent Indian government’s decision to cut export duty on soya oil export and rise in soya oil demand in China are other fundamental reasons that have fueled Ajanta Soya share price.

Should you buy?

BFSI Sector update: ICICI Securities

The payment landscape in India is rapidly evolving with digital payment ecosystem leading the change, over traditional payment modes. Interestingly, while digital payment ecosystem adoption, led by UPI, has been growing fast, cash-in circulation (cash-to-GDP) also rose to 14% in FY21 from 8% in FY17. Further, within various payment / withdrawal instruments, micro-ATM (mATM) deployment continues to outpace the growth in cards, PPIs and ATMs in FY22-TD. Even on a high base of 49% YoY growth in FY21, mATM deployment has risen by a strong 32% in FY22-TD, followed by prepaid cards at 27%. On the contrary, bank-led ATM network and card issuance (both debit & credit) grew in single digit at 1% / 4% respectively between Mar-Oct’21.

In mATM space, Fino continues to dominate with 49% market share as of Nov’21, in total deployed devices. SBM Bank India (12% market share), City Union Bank (3%), NSDL Payment Bank (3%) and Yes Bank (4%) are aggressively tapping the mATM space during past 6-9 months. Other leaders including SBI, BoB, IDFC, among others, appear to be rationalising their network. On the withdrawal-volume side (AePS), total throughput in Apr-Oct’21 (7 months) was already ~74% of total FY21 throughput.

Anand Rathi bullish on this multibagger stock, raises target price

With major headwinds for Arvind Fashions now past, brokerage house Anand Rathi expects a revival in growth and better margins in its key power brands, which account for 80%+ of its revenue and almost all its EBITDA. Hence, brighter prospects make the brokerage upbeat on the company. “Ahead, it will concentrate on its six focus brands, optimise working capital via better inventory turns, and expand its network through franchisees. We expect more cash generation and better return ratios, and debt to shrink,” the broker note stated. 

Markets at this hour

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Consumer confidence dips in January, says survey

Consumer confidence among urban Indians fell 3.4 percentage points month-on-month in January, with consumers reporting a significant decline in their personal financial conditions, according to the monthly Primary Consumer Sentiment Index or PCSI released by Refinitiv-Ipsos.

Gladiator stocks – Godrej Properties – ICICI Securities

Technical View

The Nifty Realty index is regaining upward momentum after undergoing healthy retracement over past three months. Within the space we remain constructive on Godrej Properties as stock has logged a resolute breakout from falling channel, indicating conclusion of secondary corrective phase that in turn augurs well for resumption of primary trend. Thereby offering fresh entry opportunity with favourable risk reward setup

Key point to highlight is the stock has witnessed a slower pace of retracement as over past ten weeks it retraced 80% of preceding 4 weeks rally (| 1602-2598). The slower retracement indicates robust price structure that bodes well for extension of upward momentum.

GSK Consumer Healthcare-HUL merger in spotlight as GSK rejects Unilever bid

Consumer goods company Unilever Plc’s – that made three separate offers for GlaxoSmithKline’s (GSK) consumer business – comes nearly two years after its Indian arm Hindustan Unilever Ltd (HUL) successfully merged with GlaxoSmithKline Consumer Healthcare Limited (GSKCH) in India, giving it access to health food drinks brands, such as Horlicks, Boost and Maltova in the country. The 2020 deal has given HUL heft in the nutrition category in India. Unilever also acquired rights to health food drinks brands in around 20 other predominantly Asian markets.

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