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The Indian market's
volatility increased as a result of spiraling coronavirus cases in China and
the Bank of Japan's decision to keep interest rates elevated for a longer
period of time. After opening on a positive note, the market became caught in
the negative sentiment. The 30-pack BSE Sensex was down 635 points, or 1.03%, at
61,067 at the close, and the Nifty lost 186 points, or 1.01%, to finish the
volatile day at 18,199. Indian shares opened higher on positive global cues,
but as reports of a worsening COVID situation in China began to come in,
sentiment quickly turned negative. The government and its think tank, Niti,
sounded concerned about the COVID situation that was developing and the
repercussions of it, which made the mood even worse. The Covid scare in China
and elsewhere caused another drop in benchmark indices, but today's drop was
more obvious to participants because pathology labs, hospitals, and a few
pharma counters that sell Covid-related drugs were all covered in red. Even
though developed markets continued to trade in the green in the early sessions,
all sectoral indices ended in the red, with the exception of healthcare and IT.
In the wake of seeing a decent
recuperation in the past meeting, the market again went under tension on
December 20 in the midst of selling in the vast majority of the areas. After a
gap-down start, the market extended the losses as the day progressed, with the
Nifty making a low of 18,202 intraday; however, it recovered intelligently in
the second half, to close around 18,400. At Close, the Sensex was down 103.90
points, or 0.17%, at 61,702.29, and the Nifty was down 35.20 points, or
0.19 %, at 18,385.30. The Sensex was down 103.90 points,By raising the
upper band limit for the 10-year yield to 50 basis points, which is seen as a
step toward a hawkish policy shift, the Bank of Japan shocked global markets in
a completely unexpected move. This has exacerbated the global market sell-off,
which was already risk-averse due to growing concerns about a recession
following the Fed's comment. In light of this, the US GDP figures that are
expected on Thursday will show how strong the US economy is.In stocks Adani Enterprises, TCS, Reliance Industries, Axis Bank, and IndusInd
Bank were among the largest Nifty gainers, while SBI Life Insurance, Eicher
Motors, UPL, Tata Motors, and HUL were among the largest losers. On the
sectoral front, Clever FMCG, auto, PSU bank, infra and pharma records finished
lower, while some purchasing was found in the data innovation, metal and energy
names. Today, the capital goods index fell 0.4%, while FMCG, auto, and real
estate lost 0.5% to 1%. Among individual stocks, GNFC, Indiabulls Housing
Finance, and Multi Commodity Exchange of India experienced a volume increase of
more than one hundred percent. SBI Life Insurance, Max Financial Services, and
Godrej Properties all experienced brief builds, while Adani Enterprises,
Cummins India, and Interglobe Aviation experienced prolonged builds. Suzlon
Energy, Shipping Corporation of India, PNB Housing Finance, JK Paper, Axis
Bank, Jyoti, and Multi Commodity Exchange Of India are among the more than 100
stocks that reached their 52-week high.
SELL JSW STEEL FUT 2
LOTS BELOW 750 TARGET 738/725 SL 765
JSW STEEL - In just 12 years, JSW Steel has impressively
transformed its 2010 acquisition of a 3.3 mtpa steel plant into a massive 10
mtpa integrated steel plant. The company is currently working on project
configuration and land acquisition and has plans to increase capacity by an
additional 4 mtpa. Phase II, which has a lower conversion cost of Rs 4,500 per
tonne than phase I and was put into operation by JSW Steel in Q3FY22,
impressively increased production to rated capacity within a year. Despite
significant growth capex, the company would generate FCF (pre-growth capex) of
Rs 60,000 crore over FY2023-25E at through-cycle margins, led primarily by
strong volume growth and deleverage. We have increased our fair value to Rs 685
from Rs 630 and increased our Ebitda by 9.6 percent/6.7 percent for FY2024-25E.
Given the high valuation at 7 times EV/Ebitda FY2024E, we maintain our SELL
rating.
BUY TITAN FUT 2 LOTS ABOVE 2518 TARGET 2543/2570 SL 2498
TITAN - Tanishq is doing very well, and Titan's management has
chosen to take a value-focused approach, which is working out well for them.
According to the brokerage, the management of the business did not pass on the
entire effective import duty increase of 4.25 percent to customers in July. The
management of the jewelry business stated that, despite a shift in the
geographic mix, there is a good chance that the proportion of stud sales will
return to levels prior to Covid. The Watches and Wearables segment's targeted
20% CAGR will be primarily driven by the Wearables business. "The
management indicated that expansion in return ratios is unlikely to be sharp in
the first few years due to higher upfront investments. However, the healthy
growth in overall revenue and earnings over the preceding five years is likely
to continue over the next five years.
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