Sensex, Nifty End Best Year Since 2017 On A Strong Note

India's stock benchmarks closed the year 2021, the best in four, on a positive note. It was a year of milestones with both the S&P BSE Sensex and NSE Nifty 50 index hitting record highs, as markets shrugged off the impact of the the delta variant and ended the year grappling with concerns over the omicron variant, besides the possible impact due to faster withdrawal of monetary stimulus in the U.S. to arrest the elevated inflation levels.

On the final session, Sensex rose 0.8% to 58,253.82. The 30-stock gauge rose over 1% in intraday trade. The Nifty advanced by similar magnitude to 17,354.05. Hindalco Industries Ltd. had the largest increase, rising 5.8%. Today, 44 of 50 shares rose, while six fell.

The broader indices outperformed their larger peers on the final session with the S&P BSE MidCap gaining 1.38% and S&P BSE SmallCap adding nearly 1.2%. All the 19 sectoral indices compiled by BSE Ltd. adanced, led by S&P BSE Metal index, which increased over 2%.

The market breadth was skewed in the favour of bulls. About 2,437 stocks advanced, 953 declined and 90 remained unchanged.

"Post some consolidation in last couple of sessions, Nifty resumed the positive momentum and rallied higher to test 17400 mark. The Banking index which had recently seen an underperformance, witnessed a good buying interest and it surpassed the higher end of its recent consolidation", noted Ruchit Jain, Lead Research, 5paisa.com, and added that "this certainly bodes well for the bulls and if the banking space continues to show a follow up move, then this sector could witness a sharp momentum to cover up for the recent underperformance. As far as Nifty levels are concerned, the immediate hurdle is seen around 17,450 while 17,300 and 17,230 will be the support levels".

• Firstsource Solutions raised to 'buy' from 'accumulate' at Dolat Capital Market; price target set at Rs 230, an implied return of 26%

Source: Bloomberg

Shares of HCL Technologies Ltd. rose for the ninth straight day, on track for the longest winning streak since the period ended Jan. 8, 2002.

• HCL Tech has gained a total of 14% during the streak while the NSE Nifty IT index rose 5.9% over the same period.

• The relative strength index on the stock was at 78; indicating it may be overbought.

Source: Bloomberg

Cadila Healthcare Ltd.'s U.S. Subsidiary Zydus Pharmaceuticals (U.S) Inc. has received tentative approval from U.S. FDA to market Pimavanserin Capsules in the strength of 34 mg.

• Pimavanserin is indicated for treatment of hallucinations and delusions associated with Parkinson's diseases pyschosis.

• Drug will be manufactured at the formulation facility at SEZ Ahmedabad.

Source: Exchange Filing

• Hindustan Unilever had no engagements with the All India Consumer Products Distributors Federation thus far.

• The Company will ensure that supply of its products remains uninterrupted

• HUL: Will ensure uninterrupted product supply.

• HUL: Will ensure distributors earn fair return

Source: Company Statement

A PTI report had quoted AICPDF that its members will not launch any new product of HUL unless it gets an undertaking from that the said product is not available with B2B retailers.

The All India Consumer Products Distributors Federation (AICPDF) represents over four lakh distributors and stockists across India.

• Bikram Singh, Industries Minister of Himachal Pradesh: The issue is likely to be discussed next in Feb. 2022

• This issue has also been moved to the GoM on rate rationalization: Tamil Nadu's Finance Minister, Palanivel Thiaga Rajan

• The GoM on GST rate rationalization has been extended.

India's stock benchmarks are poised for a strong close to the year, going by the first half of Friday's session. Both the S&P BSE Sensex and NSE Nifty 50 rose 1% in intraday trade. Banking, metal and auto stocks aided the gains.

The Sensex rose 1.01% (amounting to 583 points) to 58,377.86. The Nifty advanced by similar magnitude to 17,391.40. Hindalco Industries Ltd. rose the most, adding 5%. 43 out of 50 stocks advanced.

The broader indices outperformed their larger peers, with S&P BSE MidCap gaining 1.36% and S&P BSE SmallCap rising 1.2%. All the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Metal, Consumer Durables and Basic Materials adding over 2%.

The market breadth was skewed in the favour of bulls. About 2,517 stocks advanced, 805 declined and 98 remained unchanged.

Indian bonds are set to fall for a third straight week amid weak demand. Traders look forward to a Rs24,000 crore ($3.2 billion) bond sale after an auction last week had to be saved by underwriters. The rupee is headed for a fourth successive annual loss.

• 10-year yields up 2bp to 6.49% on Friday; up ~60bps this year, the biggest rise since 2017. Yields have risen 3bps this week, so far.

• RBI drains Rs 2.7 lakh crore via 14-day variable-rate reverse repo, compared to Rs 7.5 lakh crore aim: RBI statement.

• USD/INR falls 0.2% to 74.2575; up 1.7% so far this year.

Source: Bloomberg

Shares of PB Fintech Ltd. rose as much as 4.41%, the biggest intraday gain in eight sessions, to Rs 970 apiece.

• PB Fintech's Board approved an investment of Rs 700 crore, in one or more tranches, in wholly owned subsidiary Policybazaar Insurance Brokers Pvt. Ltd. and Rs 300 crore in Paisabazaar Marketing and Consulting Pvt. Ltd.

• Policybazaar also launched pre-qualified program for personal loans in partnership with Axis Bank, the company said in an exchange filing post market hours Thursday.

Source: Exchange Filing, Bloomberg

Most yields along the India sovereign yield curve rose, with 10-year bonds moving the most in Friday morning trading.

• The 5-year yield was little changed at 5.82%

• The 10-year yield rose 1.1bps to 6.48%

• The 20-year yield remained unchanged at 6.914%

• The 5-year-10-year yield spread was 66bps, vs previous close 65.2bps

Source: Bloomberg

• The acquisition of the Allyis India Pvt. and its holding company Green Investments LLC, is expected to bolster digital capacities, cloud and automation and analytics.

• Allyis India and Green Investments had a revenue of $39.6 million in the year end December 31, 2020.

Source: Exchange Filing

CMS Info Systems' shares list at Rs 220.20 on the National Stock Exchange, nearly 2% premium to the issue price of Rs 216.

India's stock benchmarks opened the final day of calendar year 2021 higher, aided by metal, telecom and realty stocks. It was also a record year for the markets with both the S&P BSE Sensex and NSE Nifty 50 reached new milestones. However, omicron strain and faster timeline of withdrawal of monetary stimulus brought markets below the records in the last few weeks.

The Sensex rose 0.6% to 58,138.46.The NSE Nifty 50 advanced by similar magnitude to 17,312.15 This is the first time the 50-stock gauge rose above 17,300 since December 16. Hindalco Industries Ltd. had the largest increase, rising 3.2%. In early trading, 40 of 50 shares rose, while 10 fell.

The broader indices almost mirrored their larger peers with S&P BSE MidCap rising 0.6% and S&P BSE SmallCap adding 0.8%. All the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Metal, Consumer Durables and Telecom leading the gains.

The market breadth was skewed in the favour of bulls. About 2,157 stocks advanced, 531 declined and 78 remained unchanged.

A sharp increase in goods and services tax on textiles, which was to come into effect from Jan. 1 is expected to be rolled back in Friday's meeting, Mint newspaper reported citing three state ministers.

• Meeting has been called to discuss the rollback of the tax rate increase from 5% to 12% on several items in textile sector. The hike would hurt businesses and small traders, the newspaper reported.

Search committee to evaluate candidates for the position both from within and outside the bank.

Bank says it will endeavor to complete the succession process at an early date.

Source: Exchange filing

Indian bond traders will gauge demand at a Rs 24,000 crore bond sale after an auction last week had to be saved by underwriters. The rupee is headed for a fourth successive annual loss

• RBI to hold Rs 7.5 lakh crore of 14-day reverse repo auction on Friday

• USD/INR falls 0.4% to 74.4200 on Thursday; up 1.9% so far this year

• 10-year yields up 1bp to 6.47% on Thursday; up 60bps this year, biggest rise since 2017

• Global funds sell net Rs 986 crore of India stocks Thursday: NSE

• They bought Rs 40 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 34 crore of corporate debt

• State-run banks bought Rs 1,610 crore of sovereign bonds on Dec. 30: CCIL data. Foreign banks sold Rs 493 crore of bonds.

Source: Bloomberg

• Reliance New Energy Solar signed definitive agreements to acquire a 100% shareholding in Faradion Ltd. for an enterprise value of GBP 100 million.

• RNESL will also invest GBP 25 million as growth capital to accelerate commercial roll out.

Source: Company Statement