WEEKLY TRENDSETTER (JANUARY 23RD ,2021)
| 2021 | 15th Jan | 22nd Jan | Ch % |
| NIFTY | 14433 | 14371 | -0.42 |
| BANK NIFTY | 32247 | 31167 | -3.34 |
| USD/INR | 73.09 | 72.96 | 0.17 |
The mid week saw some euphoria when the BSE SENSEX touched 50000 and there was all round excitement and nostalgia.The Nifty however reverted from 14753 when the broader expectation was that 15000 was on cards .The broader market saw good profit taking and on 4 days the advance decline was negative .Banking bore the brunt of selling on the back of couple of dismal results like Bandhan Bank and South Indian Bank which saw Bank Nifty slide sharply towards close of the week.
BIG PLAYERS ACTIVITIES
The FII s turned sellers towards end of week while DII s continued with their profit taking .
RESULT SEASON IS BACK!
While the heavyweights like Reliance, Bajaj Finance and JSW Steel posted decent set of numbers ,Bajaj Auto beat estimates as exports have surged with back log spilling to the next qtr .Some other less discussed corporate results are as follows :-
| Company | Revenue | Net profit |
| CEAT Tyre | 2212(+29.5) | 127.6(+105) |
| Shakti Pump | 300(+243) | 25.4(loss of 9.6 cr) |
| Havells | 3165(+39) | 349(+74) |
| Tata Comm | 1544(+8.9) | 180.9(+59) |
| Oriental Aromatic | 190(+8.7) | 36.4(+103) |
Rs in cr (Figures in bracket indicates change in %)
CEAT -The expansion in margin was the highlight of the results .Replacement tyre contributed 71% of the revenue .Exports were at 13% and import restrictions also helped to prevent dumping from China .The company ‘s focus on exports for which increased capacities are in place could result in a natural hedging vis-à-vis domestic markets . The results saw a sharp surge in all tyre stocks like JK Tyre(which also announced robust earnings) ,Apollo Tyre ,etc .The Q4 is expected to continue in the same vein.
Shakti Pump -The Govt ‘s Kusum Yojana has aided the company with orders expanding steadily .70% of the business comes from solar energy and this could be the catalyst for the company’s future.The trend seems to suggest that the company could end up with Rs40 EPS for the year .
Havells-The company has made a resounding comeback and back to pre Covid levels .Consumption surge saw strong growth in all segments like switchgears,cable,lighting &fixture,electric consumer durables .The Lloyd consumer revenue saw a 70% surge .All in all a superb performance !
Tata Communication-After a scorching first half ,the company saw some brakes in performance though the future looks robust .The Govt will finally sell its 26% stake in the erstwhile VSNL which is expected to garner Rs 8000 cr .The stock price cooled off post results.
Oriental Aromatics -Clearly the results also had a pleasant aroma ! The company has now posted EPS of Rs 23 in the 9 -month period of FY21 . It is one of the largest manufacturers of a variety of aroma chemicals ,camphor,fragrances and flavours .It is on a capacity expansion mode .
WHAT DOES THE COMING WEEK HOLD ?
1.The focus now shifts to the budget slated to be announced on Feb 1 .There were murmers of Covid surcharge in the budget as well as some taxes on stock markets which has seen a huge surge in the last few months .All this aided a much needed correction.
2.Next week will see results from several companies ,notable of them being Kotak Bank, L&T,Canbank ,Axis Bank,Nalco,Bank of Baroda,Lupin,Tata Motors,Vedanta ,CIPLA ,Dabur,IOC ,Sun Pharma .Promises to be an action packed week!
3.On the market front,the market could see some more profit taking which is welcome as going into budget ,some of the euphoria of the last few weeks gets sold into .13600 looks a decent support level .
DID YOU KNOW
Tata Motors which has clearly surprised most by the sharp surge in the last few months seems to have quickly grab opportunities thrown by Covid like manufacture of refrigerated trucks to carry Covid vaccines .This trend could spill over for transporting other goods which require refrigeration along the way.The company has also announced hike in prices of passenger vehicles .
Some stray thoughts –
Even Buffet needs a Charlie Munger
The legendary investor has stated about his friendship with Munger wherein he calls Munger “the abominable no-man”for his tendancy to shoot down ideas as well as share good ideas.
Today investing has become the hottest way to socialize. Infact at some online broking sites one could even “autocopy” other users.
The more the winners make in a bull market, the more they tend to brag. The more they brag, the more attention and imitators they attract.
And the less newcomers know about investing, the more likely they are to follow the biggest and loudest winners.
Wishing all readers a great trading week ! Paper profits are ok to brag about but the real profits are in cash !
Krish Subramanyam