Investors are rounding out the year by locking in some profits after a 17% jump in global equities. The coronavirus, Federal Reserve policy tightening and China’s outlook are among the key risks for next year. Worries about omicron are easing on growing evidence that the fast-spreading variant appears milder in nature.
These 2 Rakesh Jhunjhunwala portfolio Tata Group stocks are Motilal Oswal’s top picks for 2022
For the year 2022, domestic brokerage and research firm Motilal Oswal has shared its top stock picks for the new year which includes two Tata Group stocks Tata Motors and Titan, under the list of the brokerage’s largecaps ideas. While sectors like banking and auto have underperformed the market so far, Motilal believes that they have the potential to turn out the dark horse in 2022.
Rupee trades in narrow range in early trade against US dollar
The Indian rupee was trading in a narrow range in morning trade on Wednesday as muted domestic equities and firm crude oil prices weighed on investor sentiments.
At the interbank foreign exchange, the rupee started on a tepid note at 74.69 against the dollar. It traded in a narrow band of of 74.68 to 74.76 in initial deals.
On Tuesday, the rupee registered its ninth straight session of gain and surged 30 paise to close at a one-month high of 74.70 against the US dollar.
An Indian conglomerate is offering ₹3 lakh to purchase EV
Mumbai based business conglomerate, JSW Group, is offering incentives to its employees for the purchase of electric vehicles on New Year. The steel major will be offering ₹3 lakh to its employees starting January 1, 2022 for the purchase of electric vehicles. The company will also be offering parking and charging options as well at its office premises to boost the adoption of EVs among its workers. The amount will be given for electric four wheelers and two wheelers purchases.
Multibagger stock: ICICI Securities sees more upside on this IT share
Zensar Technologies (Zensar) offers application & IMS services to hi-tech, manufacturing, retail and BFSI. The company has grown organically and inorganically over the years with net debt free and healthy double digit return ratio (with RoCE of 19%), highlighted brokerage house ICICI Securities.
Zensar’s share price has grown by around 2.6 times over the past five years (from around ₹175 in December 2016 to ₹ ₹470 levels in December 2021). The brokerage firm remains positive on the multibagger stock, that is up around 115% this year, and has maintained Buy rating. It values Zensar at ₹565 per share (target price) with a target period of around twelve months.
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Top gainers/losers at this hour
Mukesh Ambani wants to accelerate leadership transition at Reliance
Richest Indian Mukesh Ambani on Tuesday mentioned about leadership transition at his energy-to-retail conglomerate, saying he wants the process to be accelerated with seniors, including him, yielding to the younger generation.
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Top gainers/losers in the BSE MidCap index
BUY Ultratech Cement: ICICI Securities
We expect UltraTech Cement (UTCEM) to continue to post industry leading growth and profitability over FY21-24E backed by low-cost brownfield expansions and increased cost efficiencies. Its diversified pan-India market mix, premium brand positioning, strong distribution network and large presence in non-trade segment allow it to wither current demand uncertainties much better than peers.
Cost-saving initiatives may result in Rs100/te benefits (our estimate) by FY24E, and RoCE (post-tax) may expand by 400bps over FY22-24E to ~17%. Dividend payout ratio has increased from 10% in FY20 to 20% in FY21 which may rise further as UTCEM is likely to generate Rs200bn FCF over FY21-24E. Maintain BUY with an unchanged target price of Rs8,850/sh (15x Dec’23E EV/E). UTCEM remains our top pick.
Key risk: Lower demand/pricing.
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Amara Raja to invest in this European EV battery maker, aims foothold
Amara Raja Batteries Limited, industrial and automotive battery maker, has today announced its plans to invest in InoBat Auto, a European technology developer and manufacturer of premium innovative batteries for e-mobility. The initial investment will give Amara Raja a key foothold in the thriving European EV ecosystem, where multiple battery gigafactories are being set up to support the region’s determined EV push, including in the UK, which is seeing a rising need to address increasing demand for electric vehicles.
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INOX opens cinemas in Dhanbad, Gurugram
India’s second-largest multiplex chain, INOX Leisure Ltd has announced the launch of a four-screen theatre in Dhanbad and a five-screen property in Gurugram. This is INOX’s second property in Jharkhand and ninth in Haryana.
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Sebi tightens rules amid IPO frenzy
The markets regulator on Tuesday tightened rules for initial public offerings aimed at tackling regulatory gaps and extreme stock price volatility on their trading debut, after a record year for IPOs that saw Indian companies raise ₹1.19 trillion.
The new rules address how companies set IPO price bands, when anchor investors can sell their shares, disclosures about how the company can spend share sale proceeds, and how much large shareholders can sell on listing day.
Markets opening view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
It is heartening to see the Nifty above 17250; it needs to close above this level. That is crucial. If we can trade between 17250-17300 for a couple of sessions we should be heading to 17600. A strong support lies at 16800 and every dip can now be utilized to accumulate long positions.
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FMCG, Metal fall
This newly listed specialty chemical stock gets over 37% upside target from Anand Rathi
Ami Organics is one of the major manufacturers of Pharma Intermediates for certain key APIs, including Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban which find application in certain high-growth therapeutic areas, commanding significant market share both in India and globally.
With the presence in high growing and niche markets, Ami Organics Limited is set to continue to post better growth in mid term, as per brokerage house Anand Rathi. It has initiated coverage on the specialty chemical stock with a Buy rating and a target price of ₹1,354 per share.
IndusInd Bank, Dr Reddy’s, Sun Pharma lead Sensex stocks
Nifty above 17,200-mark at open
Sensex at open
Nifty in pre-open
Markets in pre-open
Day trading guide for Wednesday
3 stocks to buy or sell today — 29th December.
Read More: Market LIVE: Sensex up 100 pts, Nifty above 17,200; Pharma stocks in focus