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CAPITALSTARS PRESENT MONDAY CURRENT MARKET NEWS : 11 JANUARY 2021

11 jan (3)

Indices turn range bound; breadth negative.

Barometers traded in a narrow range in early afternoon trade. The barometer index, the S&P BSE Sensex, jumped 372.49 points or 0.76% at 49,155. The Nifty 50 index gained 94.30 points or 0.66% at 14,441.55.

In the broader market, the S&P BSE Mid-Cap index fell 0.66% while the S&P BSE Small-Cap index lost 0.39%.

The market breadth was negative. On the BSE, 1,266 shares rose and 1,694 shares fell. A total of 162 shares were unchanged.

Nifty Financial Services Index (FINNIFTY) F&O contracts started trading from today. It is a diversified index of banks, insurance companies, NBFCs, etc. compared with the Bank Nifty index which includes only banks stocks. NSE has waived transaction charges for 6 months.

Economy:

Assocham on Sunday (10 January) said that India’s economy is showing decisive signs of a ‘V-shaped’ recovery in 2021 with the return of consumer confidence, robust financial markets, an uptick in manufacturing and exporters braving it out in the global market with never-say-die spirit. The industry chamber further added that it expects immense accruals of economic benefits from the COVID-19 vaccination programme about to be rolled out.

Buzzing Index:

The Nifty IT index advanced 2.30% to 26,763.30. The index added 5.98% in two days.

Infosys (up 4.60%), Wipro (up 4.06%), HCL Technologies (up 3.48%), Mphasis (up 2.40%) and MindTree (up 0.91%) were the top gainers in IT segment.

TCS rose 1.41% after the IT major reported 16.4% rise in consolidated net profit to Rs 8,701 crore on a 4.7% increase in revenue to Rs 42,015 crore in Q3 December 2020 (Q3 FY21) over Q2 September 2020 (Q2 FY20). The company’s September quarter net profit had a post-tax one-time impact of Rs 958 crore due to provision for ongoing litigation with EPIC.

The company’s consolidated net profit has grown by 7.2% and revenue has risen by 5.4% in Q3 FY21 over Q3 FY20.

TCS said that constant currency revenue for Q3 FY21 rose 4.1% quarter-on-quarter and 0.4% year-on-year. The IT major’s operating margin stood at 26.6% in Q3FY21 compared with 26.2% in Q2FY21. Net margin stood at 20.7% in Q3FY21.

TCS said that all its verticals showed good sequential growth, led by Manufacturing (+7.1%), BFSI (+2%), Life Sciences and Healthcare (+5.2%), Communications & Media (+5.5%) and Retail and CPG (+3.1%). On a year on year, constant currency basis, Life Sciences and Healthcare continued to grow in double digits at 18.2%. BFSI (+2.4%) and Technology & Services (+2.4%) also moved into positive territory.

The IT firm continued to witness a strong rebound in growth and transformation services as customers seek to operationalize new models. Growth in the quarter was led by Cloud Services, Analytics & Insights, Cognitive Business Operations, IoT and Quality Engineering & Transformation Platform Services.

As on 31 December 2020, the company has applied for 5,634 patents, including 134 applied during the quarter, and has been granted 1,713 patents. The company’s net cash from operations in Q3 FY21 was Rs 11,952 crore.

Stocks in Spotlight:

Narayana Hrudayalaya jumped 4.07%. The hospital chain said that it has discontinued operations of its heart center based in the premises of IQ City Hospital in Durgapur, West Bengal. The healthcare chain operator said it has discontinued its operations of its heart center-based in the premises of IQ City Hospital in Durgapur, West Bengal under an agreement with IQ City Foundation (formerly known as SPS Synergy Foundation).

Further, the company’s unit was disposed on a going-concern basis to IQ City Foundation as per the agreement executed on 6 January 2021. The unit was sold to IQ City Foundation for an amount of Rs 4.51 crore.

Mishra Dhatu Nigam (MIDHANI) gained 0.35%. HDFC Mutual Fund hiked its stake in the firm by 2.03%. As on 7 January 2021 the aggregate holding of HDFC Mutual Fund schemes in MIDHANI has increased to 9.13% from 7.10% earlier. The transaction took place in open market.



Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.

CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.

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