Images on investors’ trading screens turned around 180 degrees by the end of the session on Friday as bulls fought back to lift indices over a per cent higher. A drop in the US Treasury yield and a GDP growth upgrade by Moody’s for India helped the markets snap 5-day losing streak.
Tracking sluggishness in the global markets, the domestic equity markets opened in a sea of red with the frontline indices dropping over a per cent. The dip was, however, quickly bought-into, pushing markets in the positive territory in less than 120 minutes into the trade.
Mood in the global markets changed after the US Treasury yields slipped to 1.5 per cent from Thursday’s high of 1.74 pe cent. Back home, Moody’s Analytics said India’s economy is likely to grow by 12 per cent in CY2021 following a 7.1 per cent contraction last year as near-term prospects have turned more favourable.
Consequently, bulls reigned on Dalal Street for the first time in six days riding on the back of FMCG and metal counters. Both, the Nifty FMCG and Metal indices, ended over 2 per cent higher each, followed by gains in the Nifty Pharma and PSU Bank indices, up over 1 per cent. Other indices settled with less than a per cent gains, while the Nifty Realty index ended in the red, down 0.7 per cent.
Among the key headline indices, the 50-share barometer on the NSE closed above the 14,700-mark at 14,744 levels, up 186 points or 1.28 per cent. The 30-share benchmark Sensex, on the other hand, advanced 642 points, or 1.3 per cent, to end at 49,858 levels. In the intra-day deals, the Sensex and the Nifty touched 50,003 and 14,788, respectively jumping 1,416 and 350 points from day’s low.
Individually, HUL, Power Grid, JSW Steel, Tata Steel, NTPC, UPL, Reliance Industries, Divis Labs, Gail, and UltraTech Cement were the top gainers on the Nifty, while L&T, Coal India, Tech M, Bajaj Auto, Titan, and ONGC ended as the top laggards.
In the broader markets, the S&P BSE MidCap and SmallCap indices closed 1.35 per cent and 0.4 per cent higher, respectively.
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An across-the-board sell-off dragged the benchmark indices around a per cent lower on Friday as sombre global mood hit markets during the second-half of the trading session. US 10-year Treasury yields rose again on Friday, back above 1.6 per cent, and were on track to rise for the seventh straight week. Add to it, the dollar index rose 0.4 per cent denting sentiment further.
Against this backdrop, gains in Asian stock markets proved tough to match for most of European peers, after they hit a 1-year high in the prior session. Nasdaq Futures, which tumbled over 1.5 per cent, or 200 points, also suggested a lower start for Wall Street later in the day.
Japan’s Nikkei added 1.7 per cent – but this faded out as Europe opened for business. Britain’s FTSE 100 and the STOXX Europe 600 slipped around 0.5 per cent each, weighing on the MSCI World Index, which was down 0.1 per cent.
Back home, the equity indices snapped their three-day winning streak and settled 0.9 per cent lower. The frontline S&P BSE Sensex dropped 487 points, or 0.95 per cent, to end the day at 50,792 levels. From the intra-day high of 51,822, the index plunged 1,284 points to hit an intra-day low of 50,538.
On the NSE, the Nifty index held the 15,000-mark to close at 15,031 levels, down 144 points, or 0.95 per cent. In the intra-day trade, the index hit a low of 14,954.
26 of the 30 constituents on the Sensex and 42 of the 50 constituents on the Nifty ended the day in the red. Hindalco, Bajaj Auto, HDFC Life, SBI Life, Maruti Suzuki, Adani Ports, IndusInd Bank, ICICI Bank, Hero MotoCorp, SBI, and Reliance Industries, all down between 2 per cent and 3 per cent, were the top laggards on the indices.
On the flipside, PowerGrid, Titan Company, Infosys, ONGC, Indian Oil Corp, BPCL, and JSW Steel remained the top gainers on the benchmark indices.
In the broader markets, the S&P BSE SmallCap index fended the fall and settled 0.14 per cent higher supported by gains in Apollo Pipes, Jindal Poly Firms, MTNL, BGR Energy Systems, Delta Corp, and Meghmani Organics.
The MidCap counterpart, however, fell 0.45 per cent.
Sectorally, all the NSE indices were painted red with the Nifty Auto and PSU Bank indices down around 2 per cent each. The Nifty Bank, Financial Services, FMCG, Metal, and Private Bank indices, on the other hand, slipped nearly 1 per cent.
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- ARL is in custom synthesis and specialty chemical manufacturing business.
- Life science specialty chemical has a major share in top lines.
- Capex of Rs. 800 cr. in the last three fiscals has started bearing fruits.
- The issue is aggressively priced based on comparison with listed peers.
- Investors looking for long-term bets may consider investing in this IPO.
ABOUT COMPANY:
Anupam Rasayan Ltd. (ARL) is one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals in India (Source: F&S Report). It commenced business as a partnership firm in 1984 as a manufacturer of conventional products and have, over the years, evolved into custom synthesis and manufacturing of life science-related specialty chemicals and other specialty chemicals, which involve multi-step synthesis and complex technologies, for a diverse base of Indian and global customers. The company’s key focus in custom synthesis and manufacturing operations is developing in-house innovative processes for manufacturing products requiring complex chemistries and achieving cost optimization.
It has two distinct business verticals (i) life science-related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals, and (ii) other specialty chemicals, comprising specialty pigment and dyes, and polymer additives. In Fiscal 2020 and in the nine months ended December 31, 2020, its revenues from life science-related specialty chemicals vertical accounted for 95.37% and 93.75%, respectively, of revenue from operations, while revenue from other specialty chemicals accounted for 4.63% and 6.25%, respectively, of revenue from operations, in such periods.
ARL has developed strong and long-term relationships with various multinational corporations, including, Syngenta Asia Pacific Pte. Ltd., Sumitomo Chemical Company Limited and UPL Limited that has helped it expand product offerings and geographic reach across Europe, Japan, United States and India. In particular, it has been manufacturing products for certain customers for over 10 years. In the nine months ended December 31, 2020, ARL manufactured products for over 53 domestic and international customers, including 17 multinational companies. The Government of India has also recognized the Company as a three-star export house.
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Domestic markets snapped the streak of weekly losses even as sombre global mood butchered bulls at the bourses for two days straight. A rise in Brent crude prices along with a jump in bond yields acted as the double whammy on stocks on Friday, pushing benchmark equity indices down by nearly a per cent. However, a tilt towards defensives towards the fag-end of the session lifted markets off-lows.
Among headline indices, the S&P BSE Sensex ended at 50,405 levels today, erasing 441 points or 0.87 per cent. From the day’s high of 50,886, the index tumbled 726 points to hit a low of 50,160. Financial, pharma, and IT counters were the top drags on the index today with IndusInd Bank, State Bank of India, ICICI Bank, HCL Tech, Bajaj Finserv, Infosys, Dr Reddy’s Labs, Sun Pharma, and HDFC leading the list of losers. All these stocks were down in the range of 1.7 per cent to 5 per cent.
On the upside, ONGC, Maruti Suzuki, Nestle India, Titan, Reliance Industries, and L&T supported the markets with up to 2.5 per cent gains.
On the NSE, the Nifty50 settled above the 14,900-mark at 14,938, down 143 points or 0.95 per cent. 38 of the 50 stocks declined on the Nifty today, while 12 advanced.
All the sectoral indices were painted red amid across-the-board sell-off. The Nifty PSU index plunged 4 per cent on the NSE, followed by the Nifty Metal index (down 3 per cent), and the Nifty IT and Realty indices (down 2 per cent each). The Nifty Bank, Auto, FMCG, and Financial Services indices slipped between 0.5 per cent and 1.7 per cent.
In the broader markets, the S&P BSE MidCap and SmallCap indices dropped 1.9 per cent and 1.5 per cent, respectively.
The overall market breadth favoured bears with 1,904 stocks ending the day in the red, compared with around 1,083 stocks that advanced on the BSE.
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- MTL is a leading precision engineering solution company having a niche play.
- The company manufactures and does critical assemblies that give high margins.
- The company has seven plants including an EOU.
- In FY19 and FY20 it has posted robust growth amidst all odds.
- The issue is worth considering for the long term despite aggressive pricing.
ABOUT COMPANY:
MTAR Technologies Ltd. (MTL) is a leading precision engineering solutions company engaged in the manufacture of mission-critical precision components with close tolerances (5-10 microns), and in critical assemblies, to serve projects of high national importance, through its precision machining, assembly, testing, quality control, and specialized fabrication competencies, some of which have been indigenously developed and manufactured (Source: Company Commissioned CRISIL Report).
The company primarily serves customers in the clean energy, nuclear and space and defense sectors. Since its inception, it has strived to grow continually, contributing to the Indian civilian nuclear power programme, Indian space programme, Indian defense and aerospace sector, as well as to the global clean energy sector and the global defense and aerospace sector. Over the years, the company has also developed import substitutes such as ball screws and water-lubricated bearings that are specialized and used in the sectors it caters to (Source: Company Commissioned CRISIL Report).
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A steep hike in US treasury yields took the global markets by surprise on Friday as investors dumped equities for bonds. That apart, an air strike by the United States in Syria on Thursday, targeting facilities near the Iraqi border, further dented trading sentiment.
US Treasury yields vaulted to their highest levels, of about 1.5 per cent, since the outbreak of the coronavirus pandemic on expectations of a strong economic expansion and related inflation. Back home, the 10-year goverment bond firmed up to 6.23 per cent on Friday mirrowing similar trends. Effectively, fear of reversal in rate cut cycle, spooked investors who off-loaded equities worth Rs 5 trillion.
Additionally, the US air strike in retaliation for a rocket attack in Iraq earlier this month, and caution ahead of the release of the gross domestic product (GDP) for the December quarter made investors sit on the fence.
In the intra-day trade, the benchmark S&P BSE Sensex tumbled 2,149 points while the Nifty50 index slumped 629 points. The indices ended near the lowest point of the day, at 49,100 and 14,529 levels, respectively, down 1,939 points and 568 points.
All the 30 constituents on the Sensex index and 50 stocks on the Nifty ended the day in the red. ONGC, JSW Steel, GAIL, M&M, Bajaj Finance, Grasim, and Hero MotoCorp were the top Nifty losers, down up to 8 per cent; Axis Bank, HDFC, Power Grid, ICICI Bank, and HDFC Bank were the top drags on the Sensex.
In the broader markets, small-cap stocks held their ground relatively better as the S&P BSE SmallCap index settled only 0.7 per cent down. The S&P BSE MidCap index, on the the hand, ended 1.75 per cent lower.
On the sectoral front, banking counters got butchered as yield concerns soured sentiment in the sector. Expectations that banks may have to show yield-induced fall in G-sec value as losses, investors pushed the sell button for banks. The Nifty Bank, and Private bank indices closed 5 per cent down, followed by losses in the Nifty PSU Bank index, down 4.5 per cent.
The Nifty Metal and Auto indices dropped 3 per cent while the Nifty FMCG, IT, and Pharma indices slipped 2 per cent each.
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Extending their decline into fourth straight day, benchmark indices ended the week with over 1 per cent cut on the back of losses in Eicher Motors (7 per cent), Nestle India (5.3 per cent), Divis Labs (5.4 per cent), and Cipla (5 per cent).
On Friday, though, the frontline S&P BSE Sensex nurses losses of 435 points, or 0.85 per cent, to end the day at 50,890 levels. In the intra-day trade, the index tanked 800 points from the day’s high to hit a low of 50,624. Only 11 of the 30 constituents ended the day in green with ONGC (down 5 per cent), SBI and Axis Bank (down 3.5 per cent each), ICICI Bank (3 per cent), Baja Auto (2.6 per cent), and Maruti Suzuki (2 per cent) being the top losers.
Gains in Dr Reddy’s Labs (2.3 per cent), IndusInd Bank (2 per cent), HUL (1.7 per cent), and RIL (0.7 per cent) trimmed losses.
On the NSE, the Nifty50 index gave up the 15,000-mark and settled at 14,982 levels, down 137 points or 0.9 per cent. It hit an intra-day low of 14,898.
The broader markets, too, gave up their winning ways today and ended in the red. The S&P BSE MidCap index underperformed on the BSE and 1.7 per cent down today. The SamllCap counterpart, meanwhile, settled at 0.7 per cent down.
Sectorally, none of the indices ended in the green zone today. The Nifty PSU bank index ended as the top laggard on the NSE, down 4.7 per cent, after surging nearly 6 per cent each over the past two days. That apart, Nifty Metal, Bankm and Auto indices skid 2 per cent each.
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- RailTel is ICT infrastructure providers to Indian Railways.
- The company has posted slow but steady growth for the last three fiscals.
- RailTel lead the pack of the telecom industry with higher profit margins and ROCE.
- The issue appears fully priced, but worth considering for long term investment.
ABOUT COMPANY:
RailTel Corporation of India Ltd. (RailTel) is an information and communications technology (“ICT”) infrastructure provider and one of the largest neutral telecom infrastructure providers in India (Source: CRISIL Report). It is a Mini Ratna (Category-I) Central Public Sector Enterprise, wholly-owned by the Government of India and under the administrative control of the Ministry of Railways. The company was incorporated on September 26, 2000, with the aim of modernizing the existing telecom system for train control, operation and safety and to generate additional revenues by creating nationwide broadband and multimedia network by laying optical fiber cable by using the right of way along railway tracks.
As of January 31, 2021, RailTel’s optical fiber network covers 59,098 route kilometers and covers 5,929 railway stations across towns and cities in India. The transport network is built on high capacity dense wavelength division multiplexing (“DWDM”) technology and an Internet protocol/ multi-protocol label switching (“MPLS”) network over it to support mission-critical communication requirements of Indian Railways and other customers. As of January 31, 2021, under “Railwire” the company has 305746 customers and 5023 AMPs (Access Network Providers) and is an emerging key partner for Indian Railways.
It operates data centers in Gurugram, Haryana and Secunderabad, Telangana to host and collocate critical applications for customers including the Indian Railways. In addition to strategic and critical network infrastructure services, the company also undertakes various ICT projects for the Indian Railways, central government and state governments, including various train control system projects for Indian Railways. Telecom sector is expected to post CAGR of 11% to 13% till 2025 with rising ARPU.
RailTel has a strategic relationship with the Indian Railways and undertakes a wide variety of projects including the provision of mission-critical connectivity services such as Video Surveillance System (“VSS”) at stations and within trains, ‘e-Office’ services and implementing short-haul connectivity between stations and long haul connectivity to support various organizations within the Indian Railways. It also undertakes various passenger services including Content on Demand (“CoD”) services and Wi-Fi across major railway stations in India. With the latest technologies and diversification plans, the company is gearing for steady growth going forward in India and neighbouring countries.
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Domestic markets ended a tumultuous week on a flat note amid subdued trade in Asia and bleak UK economic data. The Office for National Statistics said on Friday that the UK’s gross domestic product shrank 9.9 per cent in 2020, its biggest decline on record.
Indices turned sharply lower in the fag-end of the session but recovered marginally to end mildly higher. The benchmark S&P BSE Sensex tumbled 543 points from the day’s high to hit an intra-day low of 51,261. At close, the index was at 51,544 levels, up 13 points or 0.02 per cent. The NSE’s Nifty50, meanwhile, ended at 15,163 level, down 10 points or 0.07 per cent.
ICICI Bank, Infosys, HDFC, and Axis Bank were the top gainers on the Sensex index while Adani Ports, ICICI Bank, Infosys, and Wipro were the top performing stocks on the Nifty. ITC, Sun Pharma, ONGC, and Bharti Airtel were the top drags on both the indices.
Broader markets, too, ended mixed today. The S&P BSE MidCap index was up 0.06 per cent at close while the S&P BSE SmallCap index settled 0.02 per cent lower.
On the sectoral front, the Nifty Metal index skid 1.7 per cent, followed by the Nifty FMCG index declined 1.5 per cent. At the other end of the spectrum, Nifty Private Bank and the Nifty Bank indices gained 1 per cent each.
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Stellar December quarter results by State Bank of India (SBI) and a status-quo in policy rates by the Reserve Bank of India (RBI) kept markets afloat on Friday even as mild profit-booking amid heightened volatility trimmed gains at higher levels.
In the early deals, the benchmark S&P BSE Sensex surpassed the 51,000-mark on the BSE for the first time and hit a fresh record high of 51,073. The index, however, erased gains partially and ended 117 points, or 0.23 per cent, higher at 50,732 levels.
SBI (up 11.3 per cent) was the top gainer on the index as analysts raised their targets on the stock post better-than-expected December quarter results. Global brokerage CLSA, for instance, has set a target price of Rs 560 on the lender’s stock. READ MORE
Kotak Mahindra Bank, UltraTech Cement, Dr Reddy’s Labs, ITC, HUL, and HDFC Bank, all up between 1 per cent and 4 per cent, were the other top gainers on the index. On the downside, Axis Bank (down 3 per cent), Bharti Airtel, ICICI Bank, Maruti Suzuki, TCS, and HCL Tech were the top laggards on the index.
On the other hand, Nifty50 index surpassed the psychological 15,000-mark and hit a record high of 15,015 levels. At close, the index was at 14,924 levels, up 29 points or 0.19 per cent.
The broader markets, however, came under selling pressure. The S&P BSE MidCap and SmallCap indices ended 0.93 per cent and 0.28 per cent lower, respectively.
On the sectoral front, the Nifty Auto an the IT indices ended 1 per cent lower each, while the Nifty PSU Bank index advanced 4 per cent on the NSE.
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