Nifty50: 13,981 ▲ 49 (+0.3%)
Sensex: 47,746 ▲ 133 (+0.2%)
After the initial weakness, the markets recovered and scaled new highs. The recovery was broad-based as 34 of the Nifty50 stocks closed in the green.
Among the sectoral indices, Nifty Auto (+1.3%) and Nifty Metal (+1.2%) were the top gainers whereas Nifty PSU Bank (-0.2%) and Nifty Pharma (-0.1%) were the top losers.
| Top gainers | Today's change |
| Ultratech Cement | ▲ 4.4% |
| Grasim | ▲ 3.0% |
| Shree Cement | ▲ 2.9% |
| Top losers | Today's change |
| IndusInd Bank | ▼ 1.4% |
| Sun Pharma | ▼ 1.1% |
| Axis Bank | ▼ 1.0% |
Here are the top stories for the day.
Paint stocks to see volume recovery
- As the economic recovery gathers momentum, paint companies in the organised sector are expected to see a volume recovery and market share gains from unorganised players. Shares of major paint companies, namely Kansai Nerolac (+9.0%), Akzo Nobel (+4.4%), Asian Paints (+1.4%), Berger Paints (+1.2%) and Shalimar Paints (+0.5%) were up today.
- Headwinds could come from the rise in price of inputs such as crude oil derivatives and titanium dioxide, which account for over 80% of total input costs. Margins could be under pressure if companies are not able to fully pass on the rise in input costs to the customers.
UPL gains after paring debt
- Shares of the agrochemical major were up 2.4% after the company paid off debt to the tune of $410 million (nearly ₹3,000 crore) in advance, using its cash reserves.
- As of Q2, the company had a gross debt of over ₹31,800 crore. Favourable agri-economy prospects and agricultural commodity prices are expected to aid the company in further paring debt.
Sail strengthens on demand outlook
- The country’s largest steelmaker has seen strong investor interest over the last two months, gaining over 100% in that period. The street expects an improvement in the demand for steel in 2021 due to increased government spending in the infrastructure space along with a recovery in the auto industry.
- The company plans to double its installed capacity to 50 MTPA (million tonne per annum) by 2030. Further, the company is expected to reduce its debt by nearly ₹10,000 crore in the second half of this fiscal. The stock gained 7.5% today.
Kalpataru Power and JMC Projects rise on new orders
- Kalpataru Power Transmission has bagged orders cumulatively worth ₹900 crore in its T&D (transmission and distribution) business from the overseas market and domestic EPC (engineering, procurement and construction) orders for laying pipelines. Its shares rose 3.2% today.
- Its subsidiary JMC Projects (where it holds 67.7%) also gained 3.1% after winning orders in southern India worth ₹698 crore.
Closing bell
The markets have risen smartly over the last six trading sessions. However, today’s movement was peculiar because the day’s open and close are nearly the same, suggesting indecision. Meanwhile, global cues are positive as Asian and European indices are in the green.
Beginning Friday, auto companies will release December sales volumes. The street could consider their performance as a lead indicator for demand after the festive season and whether the pandemic-led pent-up demand has been exhausted.
Good to know
What is earnings per share?
It is a company's profit divided by its number of outstanding shares. If a company earning ₹2 crore in one year had 20 lakh shares outstanding, its EPS would be ₹10 per share.
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Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.