Stock Market Live: Sensex up over 300 points, Nifty above 13,550; IT stocks lead


Cairn Energy wins investment treaty arbitration against India over tax dispute

 

Cairn Energy has won an international arbitration case against the Indian government over a tax dispute, ending one of the country’s highest-profile disputes, two sources with direct knowledge of the matter told Reuters. Cairn took the case to arbitration in 2015 to fight against a demand in 2014 from the Indian tax department for 102 billion rupees (USD 1.4 billion) in taxes it said were owed on capital gains related to the 2007 listing of its Indian unit. In 2011, Cairn Energy sold its majority stake in Cairn India to Vedanta Ltd, reducing its stake in the Indian company to about 10 percent. The Indian government seized the remaining shares in 2014 after the tax complaint was made, as well as dividends Vedanta owed to Cairn Energy for its holdings in the Indian firm. More here

Industries in Delhi to switch over to PNG by January 31, says IGL

AK Jana, MD of Indraprastha Gas (IGL), on Wednesday said that around 1,670 industries have been identified in Delhi that should shift to piped natural gas (PNG). In a conversation with CNBC-TV18, Jana said, “We are targeting to complete this by January 31, 2021, and I am very much hopeful that 100 percent conversation will be there.” On numbers, he said, “We were hopeful that we will be able to achieve what we had achieved last year, but looking at the current situation (COVID globally), we are expecting 10 percent less than what we achieved last year.” For more details, watch the video

JUST IN: ICICI Bank says RBI has approved the appointment of Sandeep Batra as Executive Director of the Bank for three years

See another 14-15 quarters of good numbers for IT, says Edelweiss’s Sandip Agarwal

There will be another 14-15 quarters of good numbers for the IT companies, said Sandip Agarwal, Research Analyst-Institutional Equities, Edelweiss Securities. According to Agarwal, we are in a very long multi-year upcycle.

“..We are just in the second or third quarter of this phase of upcycle,” Agarwal said in an interview with CNBC-TV18.

“We like HCL Technologies, Infosys, Tata Consultancy Services (TCS) in largecap names and in midcap, we continue to believe that Mindtree and TCS will generate equal shareholder value that Infosys and TCS have created – by 2034 or before. So they are multi-baggers,” he said. Read more here.

Buzzing | Shares of Glenmark Pharmaceuticals gained 2 percent after the pharma major announced that its Swiss subsidiary, Glenmark Specialty S.A., has entered into an exclusive licensing agreement with Menarini Group (Menarini) for commercializing its innovative nasal spray Ryaltris across 33 countries in Europe, including the Balkan region.

Keshav Lahoti Associate Equity Analyst, Angel Broking

Burger King India made a stellar listing on the exchange by listing at 87.5% above its issue price and is currently trading at 201% above issue price. Currently, the stock is trading at 6.2x on FY20 EV/sales basis. Short term investors can book profit at the current market price. Investors with a long-term horizon can keep their money invested in the stock as growth prospects of the company are promising and as operating leverage will kick in, it will improve the company’s margins.

Breaking | The government of India is planning to make airbags for the front passenger seats mandatory. The Ministry of Road Transport and Highways (MoRTH) is yet to issue a draft notification in this regard. Auto sector representatives are in touch with the MoRTH over the issues.

Just In | Cairn Energy has won USD 1.2 billion in damages from the Indian government. Cairn had invoked Arbitration under the Bilateral Investment Protection Agreement.

Infosys, Daimler partner for IT infra transformation

Infosys on Tuesday said it has formed a long-term partnership with Daimler AG for a technology-driven IT infrastructure transformation. After the receipt of all regulatory approvals, Daimler AG will transform its IT operating model and infrastructure landscape across workplace services, service desk, data center, networks and SAP Basis together with Infosys, a statement said.

”As a part of this partnership, automotive IT infrastructure experts based out of Germany, wider Europe, the US and the APAC region will transition from Daimler AG to Infosys,” it added. The companies, however, did not disclose the number of people who will transition as part of the deal.

”Infosys is well placed to realise this transition as an expert having integrated more than 16,000 employees through other partnerships in recent years with a high acceptance, retention and satisfaction rate,” it said. The transfer will also enable Infosys to bolster and grow its automotive business while offering Daimler employees strong prospects for long-term career growth and development, the statement added. Read more here.

Market Watch: VK Sharma, HDFC Securities

Buy 920 Call in HCL Technologies at Rs 20.85 with a stop loss at Rs 15 and a target of Rs 32.

Buy 1,220 Call in Infosys at Rs 24 with a stop loss at Rs 15 and a target of Rs 45.

Buy 4,700 Call in Info Edge at Rs 96 with a stop loss of Rs 50 and a target of Rs 200.

Buy 890 Call in Havells at Rs 16 with a stop loss of Rs 11 and a target of Rs 30.

Technical View | 13,100-13,150 is good support for the Nifty and we are trading well above that this morning. Until that level is not threatened we continue to remain in bullish territory. If that level breaks, we could slide down to 12,800. On the upside, we need to get past the hurdles of 13,700-13,800 to start forming an opinion to go long again. Hence, a wait and watch approach would be a prudent way to deal with the current markets,” says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.

Buzzing | Wipro gains over 3% after $700 million deal with German wholesaler Metro AG

Shares of Wipro gained over 3 percent in the early trade on Wednesday after the company announced a significant strategic digital and IT partnership deal with German wholesaler METRO AG.

The estimated deal value for the duration of the first 5 years is approximately $700 million. With the intention to extend up to 4 additional years, it can be a potential spend of up to $1 billion.

As a part of this transaction, Wipro will take over the IT units of METRO AG — METRO-NOM GMBH in Germany and METRO Systems Romania S.R.L. Through this partnership, more than 1,300 employees across Germany, Romania and India will transfer to Wipro, the company said in a regulatory filing.

Global brokerage Macquarie is of the view that the deal is an important step towards improving Wipro’s revenue growth rates in Europe.

Macquarie maintained an Outperform rating with a target of Rs 416 per share.

Wipro also announced that its Rs 9,500-crore share buyback offer will open on December 29 and close on January 11. Read more here.

India likely to approve AstraZeneca vaccine by next week – sources

India is likely to approve Oxford/AstraZeneca’s coronavirus vaccine for emergency use by next week after its local manufacturer submitted additional data sought by authorities, two sources with knowledge of the matter told Reuters on Tuesday. This could be the first country to give the regulatory green light for the British drugmaker’s vaccine as the British medicine regulator continues to examine data from the trials. India, the world’s biggest vaccine-making country, wants to start inoculating its citizens next month and is also considering emergency use authorisation applications for vaccines made by Pfizer Inc and local company Bharat Biotech.

Markets extend gains: The Indian market extended gains on Wednesday after a flat opening led mainly by IT index which rose over 1.5 percent. Meanwhile, auto, pharma and FMCG indices also added to the gains. However, banks and metal indices continued to be in the red.

Opening Bell: Sensex opens flat, Nifty below 13,500; broader markets outperform

The Indian market opened flat on Wednesday on weak global cues as investors remained concerned about a new faster-spreading variant of the coronavirus. The losses in banking and energy stocks were capped by IT stocks. At 9:18 am, the Sensex was up 60 points at 40,067 while the Nifty rose 12 points at 13,479. Broader markets, however, outperformed benchmarks with the Nifty Midcap index up 0.7 percent and Nifty Smallcap index up 1.2 percent. On the Nifty50 index, Wipro, Infosys, HCL Tech, Tech Mahindra and IOC were the top gaienrs while Hindalco, Divi’s Labs, Hero Moto, JSW Steel and M&M led the losses.

Oaktree sends letter to DHFL creditors on concerns about corporate insolvency resolution process

In a letter to creditors of Dewan Housing Finance Limited (DHFL), Oaktree Capital has urged for fair treatment in the evaluation of its bid. The American global asset management firm has cautioned against discrimination in the corporate insolvency resolution process (CRIP) due to its foreign origin. The company highlighted that it is committed to investing in India and was invited to participate in the resolution process because of its track record. However, Oaktree said that it has been subject of a sustained campaign to undermine its bid. “This has revolved around three main themes: the conditionality of the Oaktree bid, the legality of Oaktree as a foreign investor indirectly holding a majority stake in Pramerica Life Insurance Limited (PLIL) and Oaktree as a foreign investor representing an implementation risk.” More here

Global Updates: Asian indices trade higher; Nikkei slightly off highs. Here’s more

Trump threatens to not sign COVID-19 bill, wants bigger stimulus checks

US President Donald Trump threatened on Tuesday not to sign a USD 892-billion coronavirus relief bill that includes desperately needed money for individual Americans, saying it should be amended to increase the amount in the stimulus checks. The outgoing Republican president’s threat, with less than a month left in office, throws into turmoil a bipartisan effort in Congress to provide help for people whose lives have been upended by the pandemic. ”The bill they are now planning to send back to my desk is much different than anticipated,” Trump said in a video posted on Twitter. ”It really is a disgrace.” Both the US House of Representatives and the Senate passed the legislation on Monday night. More here

First up, here is quick catchup of what happened in the markets on Tuesday

Indian benchmark equity indices Sensex and Nifty witnessed a sharp recovery to end 1 percent higher on Tuesday led by robust buying in IT and pharma stocks. The Sensex jumped 452.84 points or 0.99 percent to 46,006.80, while the Nifty ended 137.90 points or 1.03 percent higher at 13,466.30. Broader indices also supported the rally with the Nifty Midcap100 and Nifty Smallcap100 ending 0.85 and 0.77 percent higher each. The volatility index fell over 5.5 percent today to its highest in more than five weeks on Tuesday in a holiday-shortened trading week. On the Nifty50 index, Adani Ports, HCL Tech, Tech Mahindra, Infosys and GAIL were the top gainers while Kotak Bank, HDFC, Bajaj Finance, UltraTech Cement and IndusInd Bank led the losses.

Welcome to CNBC-TV18’s Market Live Blog

Good morning, readers! I am Pranati Deva from the market’s desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!





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