Indian shares were set on Friday for their best year since 2017, driven by an economic recovery from the pandemic-fuelled slump and massive liquidity, even as a raging new COVID-19 variant and valuation concerns kept investors cautious towards the year-end. Global equities are closing out a strong year, driven by a U.S. surge while Asia lagged partly because of weakness in China on regulatory curbs and a slowing economy. Bond investors are nursing losses as many central banks move toward tighter monetary settings to fight inflation. How the coronavirus and those policy shifts shape economic reopening are key for the outlook.
Nifty fair value pegged at 20,000: ICICI Securities
With the worst of asset quality concerns behind us amid resolution of big ticket stressed assets and economic optimism in the post-Covid era, Nifty earnings CAGR is impressively placed at 25.7% in FY21E-23E. We value the Nifty at 20,000 i.e. 24.5x P/E on FY23E EPS of | 815 with corresponding Sensex target at 66600.
Midcaps, small caps gave stellar returns in CY21. This is expected to continue in CY22E driven by inherent business moats as the earnings CAGR for midcap, small cap in FY21-23E is expected at ~39%, 28%, respectively. Going forward, innovative themes present in the midcap & small cap space (like speciality steel chemicals, home textiles, CRAMS, etc), superior earning potential and reasonable valuations (trades at <20x PE on FY23E, ~0.5x PEG) make us believe that more upsides are in store for investors.
Stock Picks for 2022
1. Bharti Airtel
2. The Phoenix Mills
3. Minda Corp
4. Radico Khaitan
5. eClerx Services
6. Tech Mahindra
7. Orient Cement
8. Dwarikesh Sugar
9. NRB Bearings
10. Aster DM Healthcare
Motilal Oswal AMC expects these sectors to outperform in 2022
2021 has been one of the most active years for IPO with the digital companies making their debut and lapping up a vast proportion of the new money. Also, the markets have been in an uptrend barring last couple of months. With inflation moving up and the Fed showing its intentions to tighten liquidity, markets in last couple of months have been a bit volatile, with the FIIs being seller almost on a daily basis.
Hence, 2022 is starting with an expectation of tightening liquidity, increasing interest rates and uncertainty around Covid still remaining. However, on the brighter side, economy is showing strength and the corporate earning cycle is on an uptrend. With two opposing themes playing around, I would expect 2022 to be much more range bound for the broader markets, however some of the sectors may do really well.
c) Real estate
IDFC jumps over 12%
Govt opens sale of 19th tranche of electoral bonds from January 1
In the wake of impending assembly elections in five states early next year, the government announced that it approved the issuance of the 19th tranche of electoral bonds, which will be open for sale from January 1 to January 10.
The State of India has been authorised by the government to issue and encash electoral bonds through its 29 authorized branches with effect from January 1 to January 10, 2022, as per the finance ministry statement.
Top picks for 2022
14 stocks to buy as recommended by Angel One
PB Fintech approves investing up to ₹799 cr in Policybazaar Insurance Brokers
PB Fintech board has approved further investment of an amount not exceeding ₹700 crore in one or more tranches in Policybazaar Insurance Brokers Ltd, a wholly owned subsidiary of the company during the financial years 2021-22 and 2022-23, the company said today.
Banks bring up Sensex
New ATM cash withdrawal rules from tomorrow
Starting 1 January 2022, bank customers will have to pay more for their ATM transactions once the free monthly limit gets exhausted. The Reserve Bank of India (RBI) had announced that the cash withdrawal charges on ATMs will be hiked from 1 January 2022. Lenders like ICICI Bank, HDFC Bank and Axis Bank have updated their website regarding the increased charges for cash and non-cash ATM transactions beyond the free monthly permissible limit for the users.
Nifty Metal gains over 2%
Rakesh Jhunjhunwala portfolio: Experts give buy tag to this ₹150 realty stock
Indiabulls Real Estate shares are one of the three new companies in which Rakesh Jhunjhunwala bought fresh stake in July to September 2021 quarter. However, the real estate stock has been sideways for the last 3 months as it has risen from ₹149.95 (close price on NSE on 30th September 2021) to 158 per share levels today (at 9:24 AM). However, after the fresh breakout in Nifty Realty Index, stock market experts are highly bullish on this low priced real estate Rakesh Jhunjhunwala stock.
Shriram General Insurance launches new vertical to focus on rural insurance biz
Shriram General Insurance, the non-life private insurance unit of Shriram Group, has launched a separate vertical to focus on rural insurance. The company will recruit 1,500 employees and the insurance products will be available through 25,000 points-of-sale (PoS) as part of a three-year plan for rural expansion till FY25.
Why HDFC Securities sees this multibagger IT stock to rise further in 3 months
Zensar Technologies shares are in strong uptrend on Major time frame. After making a life high in September 2021, it started correcting and halted near 380 levels which also coincide with strong demand zone on weekly chart, highlighted HDFC Securities.
Sharing the IT stock as its top e-margin positional pick based on technical trends, the brokerage and research firm said that Zensar Tech shares have also taken support of 61.8% Fibonacci level drawn by connecting low(254) and high (587).
Rupee gains 12 paise to 74.30 against US dollar in early trade
The rupee appreciated by 12 paise to 74.30 against the US dollar in opening trade on Friday, tracking gains in domestic equity markets.
At the interbank foreign exchange, the rupee opened strong at 74.35 against the American dollar, then inched higher to 74.30, registering a rise of 12 paise from the last close.
In the previous session, the rupee surged 29 paise to close at a more than one-month high of 74.42 against the US dollar.
Rollover Analysis – December 21: Yes Securities
Calm end to turbulent series, large whipsaws seen
Post heavy selloff in first half of the series sharp comeback from lows seen on Nifty from 16400 to back above 17,200 levels, Nifty/BankNifty finished series with losses of 1.9/6.2% each. Highlights for the Dec series were a) FII’s continue to dump heavy in cash markets b) BankNifty down ~20% from 3months highs while Nifty IT at life high levels c) India VIX ended near 16 mark as traders awaits earnings for next directional cues d) BankNifty down more than 5% on back to back series to remain volatile.
Rollovers for Nifty/Bank‐Nifty stood at 78% (1.04cr shrs)/84% (24lakh shrs) vs 83% (1.09cr shrs)/84% (23.7lakh shrs) previous month, roll cost stood near 50 points for Nifty, Market wide rolls stood at 91%vs 94% previous month.
FII’s derivative stats indicates long short index futures ratio at 1.94x for Jan series vs 3 months avg. of 1.58x levels, while Index futures long roll stood at 99% vs 3 months avg. of 96%. On options front, Max. call/put OI on Nifty for Jan monthly series at 17.5k calls (OI 1.77mn) and 17k put (OI ~2.9mn) shares. Outlook, options vol’s hinting for comparatively lower trading band +‐600 points from 17200 ATM mark, we expect 17600 to 16700 as trading range for Nifty, sector churning is key in range setup as IT stocks showing relative strength and Banking continue to drag.
BSE SmalllCaps gain
Tech Mahindra to acquire 100% stake in US-based Allyis Group
IT major Tech Mahindra on Friday announced that the company approved the proposal to acquire 100% equity shares in Allyis India Private Limited and the company’s wholly owned subsidiary viz., Tech Mahindra (Americas) Inc approved the proposal to acquire 100% equity shares in Green Investments LLC.
CMS Info Systems shares make a tepid market debut
Shares of CMS Info Systems made their stock market debut on the last day of the year that witnessed record number of companies raising funds through public issues. CMS Info Systems shares got listed at ₹220 per share on the NSE, nearly 2% premium as compared to its IPO issue price of ₹216 apiece. On the BSE, the stock started trading at ₹218.5 per share in Friday’s session.
Markets opening view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
“The markets have opened with a bang and are inching towards the hurdle of 17350. This is a crucial point and if we can close above this resistance level, the index will scale higher towards 17600. With a strong base at 16800, intraday dips can be utilized to accumulate long positions.”
Axis Bank, Titan top gainers in Sensex pack
Most sectoral indices in the green
Reliance to acquire UK’s battery tech provider Faradion for £100 million
The Reliance Industries Limited announced on Friday its solar unit, Reliance New Energy Solar Limited (RNESL), will buy sodium ion battery technology provider Faradion Ltd for 100 million pounds including debt.
Nifty crosses 17,300-mark
Sensex opens firm on last day of year
Markets in pre-open
Nifty in pre-open
GST Council meet: Nirmala Sitharaman will chair 46th meeting of the GST Council today
The 46th meeting of the GST Council will be held in New Delhi today at 11 am in Vigyan Bhawan and Union Finance Minister Nirmala Sitharaman will chair the meet. This meeting holds significance as it is taking place ahead of the Union Budget which is presented on the first day of February by the Finance Minister in Parliament.
Day trading guide for Friday
4 stocks to buy or sell today — 31st December
CMS Info Systems IPO share listing today. Experts predict ‘weak’ debut
Shares of CMS Info Systems are going to make its debut at Indian stock market today. As per the information available on BSE website, CMS Info Systems IPO listing date is 31st December 2021 and the equity shares of CMS Info Systems Limited shall be listed and admitted to dealings on NSE and BSE in the list of ‘B’ Group of Securities in Special Pre-open Session.
According to stock market experts, lack of interest shown by investors in regard to the public issue may reflect in its listing too. Expecting weak listing of the public issue they went on to add that CMS Info Systems shares may open in the range of ₹195 to ₹220 per share levels.
Cryptocurrency prices today gain
Cryptocurrency prices today gained with Bitcoin trading above $47,000 mark. The world’s most popular and largest cryptocurrency by market capitalization surged over 1% to $47,217. Global crypto market capitalization also rose more than 1% to $2.34 trillion, as per CoinGecko.
Ether, dogecoin, Shiba Inu also surge.
Oil heads for biggest yearly gains since 2009
Oil prices fell 1% on Friday but were set to post their biggest annual gains in 12 years, spurred by the global economic recovery from the COVID-19 slump and producer restraint, even as infections surged to record highs around the world.
On the last day of 2021, Brent crude futures were on track to end the year up 53%, while U.S. crude futures were headed for a 57% gain, the strongest performance for the two benchmark contracts since 2009, when prices soared more than 70%.
SGX Nifty futures trading 1.5 points (0.01%) higher at 17,296.50 in early deals
Stocks to Watch
Here is the list of the top 10 stocks, including SBI, IDFC First Bank, Dish TV, that are likely to be in focus today.
Asian stocks gets fillip Friday
Asian stocks got a fillip Friday from a rally in a Hong Kong gauge of technology firms following a surge in U.S.-listed Chinese equities. U.S. futures fell after Wall Street dipped from a record in thin year-end trading.
The Hang Seng Tech Index rose about 4% and China climbed. Those moves came in the wake of the Nasdaq Golden Dragon China Index’s biggest one-day jump since 2008 on Thursday, though it’s still down more than 40% for 2021.
The latest data showed China’s manufacturing sector continued to expand in December, providing some relief to Beijing as the world’s second-largest economy continues to struggle with a property market slump.
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