Daily Share Market News: Positive For Tata Motor, Reliance Industries

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  • Post last modified:31/12/2021

Sensex closed at 58,253 points, up 459 points, Nifty closed at 17,354 points, up 150 points and Bank nifty closed at 35,481 points, up 418 points.

Top Gainers

CompanyPrice %Gain
Tata motors4822.64
Kotak bank1,7972.42

Top Losers

CompanyPrice %Loss
SBI life1,1950.02

Markets This Year: Highlights

  • Nifty gains over 20% to post best year since 2017, rallies 6th year in a row.
  • Nifty bank gains over 10%, underperformed 2nd year in a row.
  • Nifty midcap rallies over 45%, to post best year since 2017.
  • Nifty smallcap rallies almost 60% to post best year since 2009.
  • Nifty metal gains 70% to post best year in over a decade.
  • Nifty IT rallies over 50% in each of the last two years.
  • Nifty reality gains over 50% to post best year since 2017.
  • All sectors indices rally at least 10% each this year.

Stocks This year: Highlights

  • Tata motors gains over 150% to post best year since 2009.
  • Tata motors only nifty 50 stock to more than double this year.
  • Kotak bank posts biggest yealy underperformance over nifty since 2000.
  • HDFC bank posts biggest yearly underperformance over nifty since listing.
  • Reliance underperforms nifty first time 7 years.

Tech Mahindra

Tech Mahindra company updated that they are going to acquire 100% stake in Allyis India private limited and subsidiary company of Tech Mahindra ”Tech Mahindra America Inc is going to acquire 100% stake in Green investments LLC which is a holding company for Allyis group(together called target).

Allyis offers technology consulting, managed services, and staffing solutions that help organizations reduce costs, improve performance, and meet their unique objectives.

Reliance Industries

Reliance Industries subsidiary company named Reliance new energy solar limited updated that they are going to acquire a 100% stake in Faradion limited. Faradion is the leading global manufacturer of sodium-ion batteries.

Sodium-ion batteries are recognized as an emergent technology and a key part of the solution for cheaper, cleaner energy.  They are cheaper and safer than lithium-ion, with a higher energy density and a wider operating temperature range than other batteries.

Faradion company has patented sodium-ion battery technology and has an extensive portfolio and is better than other alternative battery technologies.

Indigo Paints

Motilal Oswal initiates coverage on the stock with a buy rating with a target price of rupees 2270. Indigo paints is the fifth largest paints company in India.

After Motilal Oswal research report update and buy rating Indigo paints rallied more than 9%.

Key Highlights of Motilal Oswal report

INDIGOPN has successfully surpassed the high entry barriers of the Indian Paints industry through its patient and multi-pronged strategy comprising a) introducing differentiated products, b) purposefully building a distribution network via the rural markets, c) creating brand equity through high investments in ads, d) rapidly driving the penetration of tinting machines, and e) engaging with influencers (painters/contractors) to build trust.

The INR545b Indian Paints industry is expected to post a robust ~12% CAGR over FY19–24E, driven by urbanization, the shortening of the repainting cycle, growth in branded players, and the robust pricing power of the branded players. In addition, the oligopolistic nature of the industry means that the incumbents have a considerable growth opportunity.

We expect INDIGOPN to continue with its robust strategy and thereby deliver a sales/EBITDA/PAT CAGR of ~28%/35%/41% over FY21–24E. The recent sharp price hikes across the industry would further support sales growth and margin recovery in 2HFY22/FY23E. We initiate coverage with a Buy rating, with a TP of INR2,270 (55x FY24E EPS).

Tata motors

China’s government updated that they are not going to provide any subsidiary for electric vehicles from 2022. If the Chinese government doesn’t provide any subsidiary for electric vehicles then people will move towards normal vehicles, it is positive news for tata motors as 30 to 35% of JLR sales are from China and JLR doesn’t have a proper EV portfolio, by this update JLR sales ay increase further.

Policy Bazar | PB Fintech

PB fintech updated that they are going to invest 700 crores in its subsidiary company Policy Bazar and the investment will be done on financial years 21-22 and 22-23 and will invest 300 crores in another subsidiary company called paisa Bazar marketing and consulting private limited.