The net sales for the December quarter is projected to drop 18-22 per cent YoY. Net profits for the oil-to-retail conglomerate is expected to increase up to 5 per cent, said analysts tracking the company.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said, “We witnessed nervousness around the 14,750 levels and the Nifty erased all its gains to close in the red. However, the trend continues to remain positive and we still have a pending target of 14,800-14,900."
The central bank on Thursday is said to have bought more than $1 billion, primarily through two state-owned banks that transacted both in the spot and forwards markets, dealers said. This checked the local unit’s sharp rise.
The party on Dalal Street over the BSE Sensex breaching the 50,000 level for the first time ever lasted only a few hours as profit-booking and concerns over the fate of vaccine rollout in the country spurred a violent selloff in the last hour of trade.
The European Central Bank kept its policy unchanged on Thursday but reaffirmed a pledge to keep borrowing costs at record lows to help the euro zone economy withstand the impact of the coronavirus pandemic.
There are so many sceptics, I don't see euphoria in the market. I agree that market is not cheap. The rally can be wider than what it is today. I think there is space for gains in power, infra and metals. Encouraging SIPs and STPs in smallcaps and midcaps as rally can become broader and earnings can suprise us positively. Not unduly worried about net outflows from mutual funds. The SIP book remains strong. Old-style equity research is what will play out.
- Nimesh Shah, MD and CEO, ICICI Prudential Mutual Fund
Your funds should be diversified across geographies, customers and distributors. Liquidity disk can be created by a huge amount of redemptions coming at a single point... Don't go only by credit rating agencies, you should have your internal credit rating system for every investment.
"I don't think people in India have reached a stage where they appreciate risks... Social media risk is the biggest risk mutual fund houses are facing today. There are so many experts there," says Nimesh Shah, MD and CEO, ICICI Prudential Mutual Fund, at the ETMarkets Global Summit 2021.
Here are highlights of what Shah said at the event:
Risk was always there, I don't think in India people reached a stage where they appreciate risks
People recognised only after a fund house closed their funds
Earlier, investors would give examples that look how there are giving more return
I had to liquidate 50% of credit risk fund in four days after that (Franklin) episode due to fear mongering on social media
So now we have to be fully prepared about this herd mentality risk, social media risk
If there is a concentrated rally, how will a manager beat the benchmark?
A diversified MF scheme can not beat a concentrated market rally
We prefer to focus on risk adjusted return (rather than running behind returns)
This is a central bank-driven rally
We should continually look at the US at what they are doing
So, assuming the dollar will be weak, money will flow into emerging market
We believe volatility will continue
Human mind is not build to be contra-cyclical
We should prepare products that can be contra-cyclical
Interest rate risk can create risk in MF system going ahead
People who don't goof up do really well in the market. You cannot eliminate risk... but try to manage the risk that you understand. You should try to broaden the area of understanding. It is just like in a test match, (you) don't play the ball which is outside the off stump. Don't go (what) you don't understand.
"Alpha generation is not a consistent process... Most successful managers generated most of the returns from certain episodes or periods of the market over a long term," says Ben Johnson, Director, Global ETF and Passive Strategies Research, Morningstar, in a panel discussion at the ETMGS 2021 event.
Here are highlights of what Johnson said:
Binary discussion on active and passive is not right
It is not always fund migration from active to passive but from high cost fund to lower cost funds
Increasingly, investment management industry is moving from mutual fund to more efficient vehicles such as ETFs
Technology has given access to all kind of security no matter how expensive
For example, fractional shares has enabled even retail investor to have exposure to all kind of stocks
Lower cost active funds have more chances to succeeding for average investor dictated by the fact they are more likely to live longer
What a day for Sensex to hit 50k... The 21st day of the 21st year of the 21st century! However, we believe this is more of a mental milestone but an important one. Since booking the profit is better than looking the profit, we advise to take some profits around Nifty 14,800-15,000 levels and keep the portfolios hedged with Nifty put options (February expiry). As a Budget strategy for traders, it is best to buy the expectation and sell the realisation. Maintain a trailing stop loss of 14,440 for positional longs in Nifty.
- Rahul Sharma, Head–Technical and Derivatives Research, JM Financial Services
"I try to keep both active, passive funds in my portfolio, not choose between them": Kalpen Parekh @ ETMGS
#ETMGS @KalpenParekh, President of @dspmf comments on the active and passive investing debate https://t.co/2QKvXsoOki
"An index is the fundamental baseline of creating passive products. India is adopting passive (investing) at a much faster rate... at 18% CAGR. In the mutual funds industry, you see a number of themes and an investor gets confused on how to filter through them. It is not active or passive but active and passive. One thing could be a core part of your portfolio, and the other a satelite," Koel Ghosh of S&P Global said in a panel discussion at the ETMarkets Global Summit, the 2021 edition of which is being held virtually.
In active funds, 80% of funds underperform benchmarks in 3-year and 5-year periods, she added. "Active funds have an edge in small and midcap space... The choice of passive is still institutional in nature. Retail investors are not still moving to passive."
"There is scope for active and passive (investing) to co-exist. In India, there are 300 stocks to buy and 2,000-3,000 mutual fund schemes to invest... We should not worry about indices capturing the market because the market itself has not started capturing the economy," Aashish Somayya, CEO, White Oaks, said in a panel discussion at the ETMGS event.
Two most important countries that will influence world growth rate are China and India... that's why they remain miracles.
- Jim O'Neill, economist
ONGC, Bharti Airtel, SBI top losers
Sensex components @ close
Sensex tumbles over 750 points from day's high, Nifty drops below 14,650
Realty, telecom, metal, utilities sectors worst hit
"I don't think taper tantrum will be a problem in 2021, probably a bigger problem for 2022... We will have a vigorous economic recovery in the second half of 2021," economist Jim O'Neill said at the annual ETMGS event, the 2021 edition of which is being held virtually. In India, he thinks, growth may not be as vigorous as in China and the US, but could see "a big recovery in 2022".
Here are key things pointed out by the British economist:
Expect Wall Street to revise economic growth forecast higher for the US on expectation of fiscal stimulus
Countries that have the greatest success in vaccine rollout will see the fastest recovery
There will be a very strong rise in personal consumption in many parts of the world in 2021
Fiscal policies in major economies will remain at least as accommodative as they have been
Central banks are going to remain just as friendly as they are even with an initial vigorous economic recovery
Expect to see more signs of Biden administration recommitting America to global policy
Instead of pursuing inflation targeting, countries should switch to nominal GDP targeting
Federal Reserve has de facto gone to targeting nominal GDP instead of inflation.
Asian Paints on Thursday reported a 62 per cent year-on-year jump in net profit to Rs 1,238.34 crore for the December quarter. The paints manufacturer had reported a net profit of Rs 764.43 crore for the corresponding quarter last year.
Bajaj Auto Q3 profit soars 23% to record high; margins hit 2-year high, shares rise nearly 3%
Bajaj Auto reported a stellar set of earnings for the December quarter on Thursday, as its net profit surged 23 per cent year-on-year to a record high of Rs. 1,556.3 crore, and its revenues rose 17 per cent to Rs 8,910 crore.
Here are the top gainers and losers in the tourism and hospitality space
Price as on 21 Jan, 2021 02:37 PM, Click on company names for their live prices.
China stocks settled higher on Thursday, in line with other Asian markets on hopes of more stimulus from U.S. President Joe Biden's administration to cushion the economic damage wreaked by the COVID-19 pandemic.
The benchmark BSE Sensex achieved a remarkable milestone on Thursday by breaching the 50,000-mark for the first time ever. The Covid-19 pandemic dragged the Sensex to record low in late March. However, it staged a recovery from the lows. Both the BSE and NSE indices finally wrapped up 2020 on a bullish note, with the Sensex gaining nearly 16 per cent.
Rupee edges higher to 72.96 vs dollar
The rupee was last seen quoting six paise -- or 0.08 per cent -- higher at 72.96 against the US dollar at the last count. It moved in a range of 72.93-73.01 against the greenback, having begun the day mildly stronger at 72.93 compared with its previous close of 73.02.
Overall market breadth neutral
Overall market breadth was almost neutral, with 929 shares trading higher on NSE against 935 moving lower. However, on BSE, laggards were in dominance, as 1,360 scrips rose against 1,525 that fell.
Metal, real estate shares witness selling pressure
Price as on 21 Jan, 2021 01:30 PM, Click on company names for their live prices.
Sensex touched the historic level of 50,000 today for the first time ever. Indian markets have been witnessing strong momentum over the past few months on hopes of a faster economic recovery after the pandemic lockdown. Also, positive global cues, sustained FII inflows and strong corporate earnings kept the sentiments high. Buzz around the upcoming Budget has also added strength to the markets. The Budget could potentially lay the foundation for a long term economic growth path. Overall, we expect the market to continue its upward journey on the back of healthy corporate earnings, strong liquidity, positive developments on the vaccine front, broad based economic recovery and low interest rates.
- Motilal Oswal, MD and CEO, Motilal Oswal Financial Services
Nifty Auto index gains over 2%, led by Tata Motors, Bajaj Auto, Eicher Motors
Price as on 21 Jan, 2021 12:53 PM, Click on company names for their live prices.
Seasoned investor Vijay Kedia said the 50,000 mark on Sensex -- which the 30-scrip index hit on Thursday -- is just a milestone in a long journey, and it could very well double in the next four to five years.
- AK Prabhakar, head of research, IDBI Capital Markets
Tata Motors, Bajaj Finance, Bajaj Auto, Reliance, Axis Bank top gainers
Price as on 21 Jan, 2021 12:43 PM, Click on company names for their live prices.
We expect the market to continue its upward journey on the back of healthy corporate earnings, strong liquidity, positive developments on the vaccine front, broad based economic recovery and low interest rates.
A solid 24,500-point rally on Sensex in just 208 days says it all. The 30-pack index at last broke the 50,000 level on Thursday, riding on hopes of the economy recovering from the pandemic blow and huge dollars flowing into domestic equities. To many, the level was unimaginable in late March 2019 when the Covid spike had threatened shutting down or curtailing stock exchange activities globally.
While at one level 50,000 is just a number, the fact that it has come so much faster than most of us thought a few months back is testimony to the remarkable resilience and massive potential that the Indian economy presents. As long as the economy delivers high nominal GDP growth, equities will compound and investors should benefit from this by taking a long-term view.
- Manish Gunwani, CIO-Equity Investments, Nippon India Mutual Fund
Sensex touching 50,000 in 2021 is like Indian cricket team winning test series in Australia against all odds of Covid-19. While economic data is about the past which is improving month on month, Sensex is reflecting the positivity about the future.
- Nilesh Shah, Group President and MD, Kotak Mahindra AMC
Sensex's journey as it scales Mount 50K
Checkout the journey of #Sensex as it crosses 50k for the first time #Sensex50k #BSE https://t.co/ZULK533iL8
We believe equity culture is at an inflection point in India. With solid research and investing in the right stocks and mutual fund SIPs investors can benefit. However one should be extremely cautious and not over leverage at high levels.
It is a journey. I have seen Sensex touching 3,000 to 4,000 to 10,0000 to now 50,000. It is just one milestone in an ever growing journey. I don’t think the market is overvalued by a big margin. It is just that it is looking at the future with a lot of positivity. Now, if those corporate earnings materialise, those growth materialises then Sensex will continue to rise. But please remember that Sensex will go up and down. From its fair value, it can become cheaper and more expensive. Very few people will be able to predict how Sensex will move in short term.
- Nilesh Shah, Group President & Managing Director, Kotak AMC
For the first time ever, Sensex crossed the psychological 50,000 mark at today's open, boosted by strong overnight cues from Wall Street and Asian markets today. Risk assets worldwide have reacted quite positively post Joe Biden's inauguration as the US President. Meanwhile, Nifty also hit a record high today, extending its advance for a third straight session.
- Abhishek Chinchalkar, CMT Charter-holder and Head of Education, FYERS
Reliance, Bajaj Finance, ICICI, Axis Bank top boosts for Sensex
Reliance Industries, Bajaj Finance, ICICI Bank and Axis Bank together accounted for more than 250 points to the gain in Sensex.
Sensex @ 50,127, Nifty @ 14,738 as market soars to new all-time highs
The Sensex index jumped as much as 334.61 points, or 0.67 per cent, to touch 50,126.73 at the strongest level of the day, and the broader NSE Nifty 50 benchmark climbed to as high as 14,738.30, adding 93.6 points, or 0.64 per cent, to its previous close -- both all-time highs.
OPENING BELL: Sensex hits 50,000-mark for first time, rises 200 points; Nifty tops 14,700; JK Tyre jumps 9%
Asian Paints, Bajaj Auto, SBI Card, Bandhan Bank, Biocon, Mphasis, Kajaria Ceramics, MCX and Mphasis are some of the companies which will announce their Q3 results today.
Home First Finance to open today
The Rs 1,153.71 crore Home First Finance IPO will open for subscription on Thursday, a day after the housing finance company (HFC) raised a little over Rs 346 crore from 25 anchor investors. On the block is an offer for sale (OFS) of Rs 888.72 crore worth shares and a fresh issue of Rs 265 crore worth shares. The price band for the issue is fixed at Rs 517-518 price band. Investors can bid for a minimum of 28 equity shares and and in multiples thereafter.
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 62.5 points, or 0.43 per cent, higher at 14,706.50 , in signs that Dalal Street was headed for a positive on Thursday.
Tech view: Short-term Nifty bottom in place
Nifty50 jumped on Wednesday and formed a bullish candle on the daily chart, for a second time in two days. Analysts said the fast retracement of the last leg of the fall is hinting that a short-term bottom is in place, and the index has resumed its rally after a brief halt.
Asian stocks gain in early trade
Asian markets rose on Thursday after US stocks closed at record highs on hopes that newly inaugurated U.S. President Joe Biden would put in place further economic stimulus to offset damage wreaked by the COVID-19 pandemic. MSCI's gauge of stocks across the globe gained 0.07 per cent. Australia's ASX 200 jumped more than 0.80 per cent in early trade Thursday. Japan's Nikkei index rose 0.81 per cent.
Joe Biden becomes US Prez
In his inaugural speech after being sworn in as the 46th President of the United States in a historic but scaled down ceremony under the unprecedented security umbrella of thousands of security personnel, the 78-year-old veteran Democratic leader said: “We'll be a strong and trusted partner for peace, progress and security”.