Clean Slate✍🏻 | Weekly stock market update 01 Jan
Catch up on all that’s trending in the last week and get ready for the Monday markets with insights from our expert research team in our weekly stock market updates
In this article
3..2..1.. And just like that, we ushered in 2023. A new year has begun.
In 2022, we saw domestic investors’ resilience as they battled one crisis after another and cushioned the effects of high inflation and war. The Indian stock markets achieved all time highs, and gave close to 5% returns where most global indices ended the year in deep red with major economies showing signs of a recession. But hopefully, we are looking at the gut-wrenching volatility of 2022 in the rear view mirror and start 2023 with a clean slate.
Here’s wishing you great things in this new year, and we hope you start your financial journey on a clean slate.
Breakup with bad financial decisions: cut your losses and use expert advise or research to make solid investment decisions.
Dream bigger: remember to use SIPs to ensure they don’t go the same way as your 2022 resolutions.
Build your hedge: the world is shrouded in uncertainty, but gold may not give you the safety net you deserve. So build your hedge using diversification into recession-proof stocks and get insured for the other uncertainties in your life.
Here’s a quick recap of the markets last week to get us started with today’s issue.
The benchmark indices nosedived in the last hour of trading in 2022, yet somehow ended the week in the green. Sensex was up 1.66% ending the week at 60,841 and Nifty was higher by 1.68% at 18,105. Bank Nifty was higher by 3.26% this week, ending at 42,986.
📈Market Outlook
–Mr. Ratnesh Goyal, Senior Research Analyst, Arihant Capital.
Nifty
On the daily chart of Nifty we observe that it is trading below the 50SMA whereas on the weekly chart we see it has taken support from the lower trend line. It indicates that we may see some pressure from the higher levels in the market. Nifty can face resistance around the 18,200 level if it starts trading above the resistance, then it can touch 18,400-18,550 levels. On the downside, the support is 17,900 if it starts to trade below then it can test the 17,750 and 17,500 levels.
Bank Nifty
On the daily chart of Bank Nifty, we observe a “Doji” candlestick formation. We also see that it has been taking support from the lower trend lineon the weekly chart. If we analyze both charts then it seems that we can see pressure from the higher level in the coming trading sessions if it trades above 43,200 levels. then it can touch 43,800 and 44,200 levels; however, downside support comes at 42,500 below that we can see 42,100-41,500 levels.
What to expect from the market?
-Mr Abhishek Jain, Head Research Arihant Capital
The year 2022 was full with uncertainty amid a waning pandemic, Russia’s war in Ukraine, soaring inflation and aggressive rate hikes. The Indian markets, however, showed resilience.
India’s stock market ended largely flat amid volatility after opening higher on Friday, however, they slipped in the last leg of the trade. Asian markets ended marginally higher, European markets opened lower and the U.S. equity futures declined on the final trading day of 2022. Nifty snapped their three week losing streak this Friday. Sensex was up 1.66% and Nifty was higher by 1.68% in this week
🔎Quick Bites
Global
- The international brent crude oil prices moved up for the third consecutive week crossing the $85 per barrel mark.
- Global equities have lost a fifth of their value seeing the largest decline since 2008 on an annual basis and an index of global bonds has slumped 16%.
- Russia to ban oil exports to countries with price cap from February.
Economy
- India-Australia Free Trade Agreement (FTA) is now in force. 96.4% of India’s exports to Australia will not attract any customs duty.
- India’s foreign exchange reserves snapped a five-week rising streak and fell to $563.5 billion for the week ended 16 December.
- Govt’s total debt increased to ₹ 147.19 lakh cr at the end of September from ₹ 145.72 lakh cr at the end of June this financial year.
- Indian spot gold prices rose by ₹ 121 to ₹54,721 per 10 grams.
- India’s current account deficit widened from 2.2% in the April-June quarter to 4.4% of GDP at $36.4 billion in the September quarter.
Industry
- The Production-Linked Incentive (PLI) scheme for automobile and auto components has attracted a proposed investment of ₹ 67,690 cr in the past 5 years. The target was ₹ 42,500 cr.
- India’s eight core sectors (including cement, coal, and steel) grew 5.4% in Nov 2022 vs 3.2% in Nov 2021.
- PLI scheme for textiles has attracted ₹ 1,536 cr in investments.
Banking and Finance
- Infibeam Avenue received RBI nod for Bharat Bill Payment license.
- Hariom Pipe Industries will be acquiring operating assets of RP Metal Sections , the galvanized pipe and cold roll coil manufacturer. This transaction cost will be ₹ 55 crore.
- LIC Housing Finance increases home loan interest rate by 35 bps
- State-owned Central Bank of India will raise up to ₹ 1,500 crore this fiscal by issuing Basel III compliant bonds.
- Bank of Maharashtra raised ₹ 880 cr via bonds.
- Punjab & Sind Bank to consider raising up to ₹ 250 crore by equity and bonds issuance.
- Bharti Airtel is planning to list its unit, Airtel Payments Bank, which has already turned profitable and growing in healthy double digits.
- HDFC sold a 2.18% stake in Siti Networks.
- India’s fiscal deficit for the first 8 months of this financial year stood at ₹ 9.78 lakh cr or 58.9% of annual estimates.
- Asian Development Bank to give ₹ 830 cr to Shriram Finance Limited to provide vehicle loans to women entrepreneurs.
- RBI has hiked the interest rate on floating rate savings bonds (2020) to 7.35 % from 7.15 % earlier.
Energy and Infrastructure
- Logistics firm Gateway Distriparks (GDL) completed the acquisition of Kashipur Infrastructure and Freight Terminal (KIFTPL) after paying ₹144.4 crore.
- GPT Infraprojects‘ subsidiary RMS GPT Ghana has won a ₹ 123 cr order.
- L&T got orders valued between ₹ 1000 cr and ₹2500 cr for its water and effluent treatment business.
- Godrej Properties bought a 62-acre land parcel in Kurukshetra to build a residential project.
- Coal India to meet 700 MT production target of FY23, says chairman.
- NBCC (India) received a new order from Odisha Power Transmission Corp.
- Rail Vikas Nigam bagged a ₹1,544 crores contract to oversee the execution of a harbor project in the Maldives.
- Dilip Buildcon incorporated a special-purpose vehicle for a road project in Karnataka.
- Indian Energy Exchange (IEX) has set up International Carbon Exchange Private Ltd (ICX), to explore business opportunities in the voluntary carbon market.
- Infrastructure firm Ashoka Buildcon has bagged a project worth ₹754 crore.
- JSW Energy has completed the acquisition of 700 MW Ind-Barath Energy (Utkal) through insolvency proceedings.
- Kalpataru Power bagged new orders worth ₹ 1,247 cr.
- HG Infra Engineering has received a new order worth ₹743 crore from NHAI.
Other
- Adani Enterprises acquired NDTV founders’ 27.26% stake for ₹602 crores.
- Reliance subsidiary will buy a 51% stake in Lotus Chocolates for ₹ 74 cr.
- Dish TV shareholders rejected the adoption of the financial year 2021 and 2022 balance sheets.
- Suven Pharma private equity firm Advent International will acquire a 50.1% stake in the company.
- Bharat Biotech‘s nasal vaccine will cost ₹ 325 at government hospitals and ₹ 800 at private hospitals.
- Max Healthcare signed a Memorandum of Understanding (MoU) for a five-year engagement with genomics biotech firm Anuva.
- India’s largest mattress manufacturer Sheela Foam will reportedly soon acquire competitor Kurlon for ₹ 2,000 crore to further expand its footprint
- Adani Transmission has formed BEST Smart Metering Ltd (BSML) subsidiary to undertake the smart meter business.
- JK Tyre announced plans to become carbon neutral by 2050.
- Tata Consumer Products subsidiary has acquired a 23.3% stake in Joekels Tea Packers.
🚀IPO Corner
- Elin Electronics made its listing debut on NSE at ₹ 244, a discount of 1.21% to its issue price. On BSE, it listed at ₹ 243, a discount of 1.61%.
- Sah Polymers IPO was subscribed 0.86 times on day 1. Retail investors subscribed 2.07 times.
- Kfintech closed at ₹364 apiece on the BSE, down 0.55% from its IPO price of ₹366. The stock touched a high of ₹372.40 and a low of ₹351.10 during the trading day.
- Mamaearth is aiming to raise Rs 400 cr via an IPO, as per media reports.
- Radiant Cash Management Services IPO bought 53% till final day.
🔌Sustainability Corner
- Jupiter Electric Mobility to debut zero-emission Commercial Vehicles – 2.2T and 7T – at Auto Expo 2023; targets growing demand from logistics, e-commerce and FMCG companies.
- Upcoming 6-airbag mandate in India to accelerate the airbag manufacturing industry’s growth 3x, to ₹ 7,000 crore, by FY2027.
- Iconic Luna, which sold 2,000 units a day 50 years ago in India, to return to market as an EV – Kinetic Group readies Electric Luna for 2023 launch.
- Gulf Oil develops customised EV fluids for electric three-wheeler manufacturer Altigreen.
- 7,66,478 EVs benefit from Phase II of Faster Adoption & Manufacturing of Electric Vehicles (FAME India) Scheme; demand incentives of ₹ 3,311 crore till December 19, 2022; 6,315 electric buses & 2,877 charging stations been sanctioned.
- Tata Motors’ commercial vehicle arm has signed an agreement with Delhi Transport Corporation (DTC) for operation of 1,500 qelectric buses in New Delhi.
- India is planning a USD 2 billion incentive program for the green hydrogen industry, in a bid to cut emissions and become a major export player in the field.
- Tata Power Renewable Energy, a subsidiary of Tata Power gets LoA from Tata Power Delhi Distribution Ltd, a JV of Tata Power and the NCT of Delhi, for setting up a 255 MW hybrid (wind and solar) power project in Karnataka.
- NTPC signed a MoU with Tecnimont to produce green methanol.
- Retail sales of EVs are estimated to top the 1-million mark in calendar year 2022, accounting for about 4.7% of the total automobile sales.
- Stage-3 of the anti-pollution plan has been implemented in Delhi-NCR. Curbs include a ban on non-essential construction work and closure of mining activities.
Also read: ESG Investing & Its Emergence in India
