Closing Bell
Indian equity benchmarks rose for second day in a row after exit polls indicated that Bhartiya Janata Party (BJP) will be winning state elections in Gujarat and Himachal Pradesh in a boost to Narendra Modi-led National Democratic Alliance government.
The S&P BSE Sensex rose 0.65 percent or 216 points to 33,463 and the NSE Nifty 50 Index advanced 0.79 percent or 81 points to 10,333. For the week, Nifty and Sensex gained 0.6 percent each.
All sector gauges barring the S&P BSE Telecom Index ended higher led by the S&P BSE Realty Index's 1.96 percent gain.
Countdown
Eveready Industries Gains On Multiple Order Wins
Shares of the Kolkata-based electronic products maker rose as much as 2.5 percent to Rs 435 after it received order for supply of ceiling fans from ministry of power worth Rs 22 crore. It also won an order from Kolkata Municipal Corporation for supply of LED lights worth Rs 1.71 crore, Eveready said in a stock exchange filing.
Tyre Stocks Buzzing In Trade
Shares of the tyre manufacturers were buzzing in trade today.
- JK Tyre rose 8.2 percent
- TVS Srichakra rose 1.6 percent
- Modi Rubber advanced 2.7 percent
- Ceat gained 3.4 percent
- Apollo Tyres rose 3.7 percent
- Balkrishna Industries rose 2.2 percent
- MRF gained 3 percent
Deepak Fertilisers Gains As Tribunal Rejects GAIL India's Rs 357 Crore Claim
Shares of the Pune-based feriliser maker rose as much as 5.15 percent, the most since Dec. 11, to Rs 406.50 after an arbitration tribunal rejected GAIL India's Rs 357 crore claim arising out of a dispute between the two on terms of usage of gas supply.
Fab Four Stocks Of The Day
Renaissance Jewellery: The Mumbai-based jewellery maker was locked in 20 percent upper circuit at record high of Rs 275.45.
- Revenue up 2.5 percent to Rs 272 crore.
- Net profit up 23 percent to Rs 9.6 crore.
- Ebitda up 19 percent to Rs 16.5 crore.
- Margins at 6.1 percent versus 5.2 percent.
Vedanta: The Panaji-based metal maker rose as much as 4.6 percent, the most in four months, to Rs 297.70 after Credit Suisse initiated coverage on the stock with an 'outperform' for target price of Rs 345.
Credit Suisse in a note said:
- Aluminium business is most important for incremental profits.
- Global supply-demand and surging raw material prices bodes well for Aluminium.
- Zinc prices have peaked and despite planned volume growth, Hindustan Zinc is fully d.
- Much of the ex-HZL upside is purely execution-dependent.
- Vedanta not expensive even after adjusting for Hindustan Zinc.
- Volume projections are below company guidance, and remains risk to rating.
TV Today: The Delhi-based news channel operator rose as much as 5.7 percent, the most since Dec. 7, to Rs 409 after the company approved merger with subsidiary India Today.
JK Tyres: The Delhi-based tyre maker rose as much as 10 percent, the most in nearly three months, to Rs 142 on the back of heavy volumes. Trading volume was eight times its 20-day average.
Waterbase Surges Nearly 60% In Five Trading Sessions
Shares of the Andhra Pradesh-based shrimp feed maker were locked in a 10 percent upper circuit at record high of Rs 302.20. The stock has been on a winning streak since last five trading sessions and has jumped 58 percent.
European Markets Slide
Astrazeneca Pharma Gains On Launching Diabetes Drug
Shares of the Bangalore-based drug maker rose as much as 5.5 percent, the most in over a month, to Rs 1,179 after the company planned to launch XIGDUO XE tablets in India in Q4FY18. The drug is used for the treatment of Type 2 diabetes in adults.
Power Lunch
Block Deal Alert
- Kotak Mahindra Bank had 34 lakh shares change hands in six blocks
- India Cements has 40 lakh shares (1.4 percent equity) change hands in three blocks on NSE and BSE at Rs 166.35-166.40 per share.
- Tech Mahindra has 10 lakh shares change hands in a single block.
- V-Guard Industries has 31 lakh shares change hands in two blocks.
- ICICI Bank: About 80 lakh shares changed hands in a block deal.
- Bharti Airtel: About 30 lakh shares changed hands in a block deal.
Buyers and sellers were not known immediately.
Source: Bloomberg
Stocks Moving On Heavy Volumes
- Merck: The Mumbai-based drug maker rose as much as 8.5 percent, the most in over two months, to Rs 1,285. Trading volume was 21 times its 20-day average.
- Great Eastern Shipping: The Mumbai-based shipping company rose as much as 3.12 percent, the most since Nov. 30, to Rs 398.50. Trading volume was 7.1 times its 20-day average.
- Future Consumer: The Mumbai-based packaged food company rose 7.72 percent, the most since Dec. 8, to Rs 70.40. Trading volume was 5-times its 20-day average.
- Cyient: The Hyderabad-based engineering service provider rose as much as 1.8 percent, the most since Dec. 8, to Rs 563. Trading volume was 4.9 times its 20-day average.
#Ask BQ
Metal Shares Lead Gains On BSE
The S&P BSE Metal Index was the top sectoral gainer on the BSE. The index rose 2.8 percent to 13,861 led by gains in Vedanta, JSW Steel and Hindalco.
Hot Money
Market Check
- Indian equity benchmarks maintained gains led by buying interest in HDFC Bank, HDFC and Larsen & Toubro.
- The S&P BSE Sensex rose 0.87 percent or 289 points to 33,537 and the NSE Nifty 5o Index advanced 0.93 percent or 95 points to 10,347.
- All sector gauges compiled by BSE were trading higher led by the S&P BSE Metal Index's 2.6 percent gain.
- Gains were broad-based as the S&P BSE MidCap Index rose 1 percent and the S&P BSE SmallCap Index advanced 1.3 percent.
- From the Nifty 50 basket of shares, 40 were advancing while 10 were declining.
Trend Spotting
Adani Group Shares Rally As BJP Seen Winning In Gujarat
Shares of Adani group companies were trading higher after various exit polls suggested BJP will come back to power in Gujarat.
- Adani Power rose as much as 4.2 percent to Rs 35.75
- Adani Enterprises gained as much as 4.3 percent to Rs 155
- Adani Ports and SEZ advanced as much as 3.26 percent to Rs 408
- Adani Transmission rose as much as 5 percent to Rs 201.95
Rajdeep Sardesai On Exit Polls To BloombergQuint
Winter Session Of Parliament Begins
Winter session of Parliament has begun today. Key legislations like triple talaq bill and Financial Resolution and Deposit Insurance (FRDI) Bill will be tabled in Lok Sabha in the winter session of Parliament.
Rupee At Three-Month High After Exit Polls Show BJP Win
Indian rupee rose as much as 0.38 percent, the most since Nov. 23, to 64.10, its highest level in nearly three months against U.S. dollar after exit polls showed BJP's win in recently concluded assembly elections in Gujarat and Himachal Pradesh.
Stocks Reacting To Q2 Earnings
Veto Switchgears and Cables: The Jaipur-based electrical accesories maker rose as much as 7.8 percent, the most since Dec. 12, to Rs 237.
- Revenue up 9 percent to Rs 64 crore.
- Net profit up 58 percent to Rs 8 crore.
- Ebitda up 76 percent to Rs 12 crore.
- Margins at 19 percent versus versus 12 percent.
Renaissance Jewellery: The Mumbai-based jewellery maker was locked in 20 percent upper circuit at record high of Rs 275.45.
- Revenue up 2.5 percent to Rs 272 crore.
- Net profit up 23 percent to Rs 9.6 crore.
- Ebitda up 19 percent to Rs 16.5 crore.
- Margins at 6.1 percent versus 5.2 percent.
Rollatainer: The Haryana-based packaging copany rose as much as 4.37 percent to Rs 6.21.
- Revenue up 10 percent to Rs 35.2 crore.
- Net profit of Rs 18.4 crore versus net loss of Rs 4.4 crore.
- Ebitda loss of Rs 0.33 crore versus Ebitda loss of Rs 0.93 crore.
- Margins at -0.9 percent versus -2.4 percent.
- Exceptional gain of Rs 33.5 crore in Q2FY18.
VIP Clothing: The Mumbai-based innerwear maker rose as much as 12.91 percent, the most since Dec. 1, to Rs 67.80.
- Revenue rose 11.6 percent to Rs 64.32 crore.
- Net profit at Rs 3.85 crore versus loss of Rs 7.31 crore
Vedanta Surges Ahead Of Meet To Discuss Rs 500 Crore Via NCDs
Shares of the Panaji-based metal maker rose as much as 4.6 percent, the most in four months, to Rs 297.70. The company's board will meet on Dec. 19 to discuss raising Rs 500 crore via non-convertible debentures, Vedanta said in a press release.
Quess Corp Gains On Acquiring Simpliance Technologies
Shares of the Bangalore-based integrated business service provider rose as much as 2.5 percent to Rs 1,048.70 after it completed acquisition of 45 percent equity in Simpliance Technologies, Quess Corp said in a stock exchange notification.
HDFC Bank Rises On Fund Raising Plans
Shares of the country's largest private sector lender by assets rose as much as 2.72 percent, the most in nearly 5 months, to record high of Rs 1,888. Bank's board will meet on Dec. 20 to discuss raising funds via way of qualified institutions placement (QIP) or American depository receipts (ADRs) or by preferential allotment, HDFC Bank said in a stock exchange filing.
The F&O Show
Shalby Makes Tepid Stock Market Debut
Shalby Ltd. made its stock market debut at a discount of 4.4 percent at Rs 237 per share on the BSE Ltd. compared to its issue price of Rs 248 apiece.
The Ahmedabad-based hospital’s Rs 504 crore initial public offering saw moderate demand with bidders subscribing 1.08 times till the final day. Most of the demand came in from qualified institutional buyers.
IndianOpen
Opening Bell
Indian equity benchmarks extended gains for a second day after the exit polls predicted a victory for BJP key states.
The S&P BSE Sensex Index rose as much as 1.1 percent to 33,605, while the NSE Nifty 50 Index also rose as much as 1.1 percent to 10,362.
The market breadth was firmly tilted in favour of buyers. All the 19 sectorial gauges compiled by BSE Ltd. rose, led by the S&P BSE Metal Index’s 1.76 percent gain.
Money Market Check: Rupee Trades At Three-Month High
- Rupee rises to strongest level since Sept. 18 at 64.10/$ on Friday versus 64.34/$ on Thursday
BQ Heads Up!
Analysts Reactions On Exit Poll
Media Reports
- Allahabad Bank to sell idle land in Bareilly, Jhansi (Economic Times).
- Cairn India rejigs top deck to drive $1 bn plan (Economic Times).
- Group led by Netmagic founder sole bidder fot Jyoti Structures (Economic Times).
- Mid sized construction firms race ahead in road sector (Mint).
- IPOs so high but fresh capital so low (Mint).
- Gujarat NRE coke RP invites fresh EoI (Financial Express).
Put-Call Ratio
- Nifty PCR at 1.27 from 1.25.
- Nifty Bank PCR at 1.05 from 0.87.
F&O Ban
- In ban: Fortis, HDIL, Jain Irrigation, JP Associates, JSW Energy and TV18 Broadcast.
- New in ban: TV18 Broadcast.
- Out of ban: IRB Infrastructure and Jet Airways.
Alert: Only intraday positions can be taken in stocks which are in F&O ban. In case of rollover of these intraday positions, there is a penalty.
IPO Watch
- Astron Paper & Board Mill IPO at Rs 45-50 a share opens, closes on Dec. 20
- Shalby Ltd. to start trading on BSE/NSE after selling shares at Rs 248 each in IPO that got 2.82 times demand
Trading Tweak
- Sumeet Industries goes ex-rights basis from today.
- Waterbase circuit filter revised to 10 percent.
F&O Cues
- Nifty December Futures closed trade at 10,276, premium of 24 points versus 22 points.
- December Futures: Nifty open interest down 2 percent; Bank Nifty open interest down 9 percent.
- India VIX closed up 2.9 percent at 16.4.
- Max open interest for Dec. series at 10,500 Call (open interest at 69.5 lakh, up 10 percent).
- Max open interest for Dec. series at 10,000 Put (open interest at 96 lakh, up 12 percent).
Bulk Deals
Religare Enterprises
- IDBI Trusteeship sold 1.1 crore shares or 6.3 percent equity at Rs 58.5 each.
- India Horizon Fund bought 71.50 lakh shares or 4 percent equity at Rs 58.5 each.
- Bay Capital Advisors bought 21.25 lakh shares or 1.2 percent equity at Rs 58.5 each.
Earnings Reaction To Watch
Goodluck India (Q2, YoY)
- Revenue up 23 percent at Rs 312.5 crore.
- Net profit up 39 percent at Rs 5 crore.
- Ebitda up 24 percent at Rs 26 crore.
- Margin unchanged at 8.3 percent.
Sree Rayalaseema Hi-Strength Hypo (Q2, YoY)
- Revenue up 21 percent at Rs 126 crore.
- Net profit up 24 percent at Rs 5.2 crore.
- Ebitda up 4 percent at Rs 12 crore.
- Margin at 9.5 percent from 11.1 percent.
Linc Pens and Plastics (Q2, YoY)
- Revenue down 6 percent at Rs 79 crore.
- Net profit down 62 percent at Rs 1.6 crore.
- Ebitda down 10 percent at Rs 7.8 crore.
- Margin at 9.9 percent from 10.4 percent.
Lovable Lingerie (Q2, YoY)
- Revenue down 11 percent at Rs 47 crore.
- Net profit down 24 percent at Rs 3.2 crore.
- Ebitda down 31 percent at Rs 3.1 crore.
- Margin at 6.6 percent from 8.5 percent.
Kopran (Q2, YoY)
- Revenue down 7.6 percent at Rs 73 crore.
- Net profit unchanged at Rs 4.5 crore.
- Ebitda up 8 percent at Rs 7 crore.
- Margin at 9.6 percent from 8.2 percent.
Veto Switchgears and Cables (Q2 YoY)
- Revenue up 9 percent to Rs 64 crore.
- Net profit up 58 percent to Rs 8 crore.
- Ebitda up 76 percent to Rs 12 crore.
- Margins at 19 percent versus versus 12 percent.
Renaissance Jewellery (Q2 YoY)
- Revenue up 2.5 percent to Rs 272 crore.
- Net profit up 23 percent to Rs 9.6 crore.
- Ebitda up 19 percent to Rs 16.5 crore.
- Margins at 6.1 percent versus 5.2 percent.
Rollatainer (Q2 YoY)
- Revenue up 10 percent to Rs 35.2 crore.
- Net profit of Rs 18.4 crore versus net loss of Rs 4.4 crore.
- Ebitda loss of Rs 0.33 crore versus Ebitda loss of Rs 0.93 crore.
- Margins at -0.9 percent versus -2.4 percent.
- Exceptional gain of Rs 33.5 crore in Q2FY18.
Data Watch
- India Nov. trade balance; est. -$13.25 billion (prior -$14.02 billion).
- Exports; no estimate (prior -1.1 percent).
- Imports; no estimate (prior +7.6 percent).
Earnings To Watch
- Patel Engineering
Stocks To Watch
- HDFC Bank to consider fund raising proposal on Dec. 20.
- HDFC to consider fund raising on Dec. 19; to subscribe securities of HDFC Bank on preferential basis.
- Unichem Laboratories completes sale and transfer of its domestic formulations business to Torrent Pharmaceuticals.
- L&T commissions 225 MW Sikalbaha combined cycle power plant in Bangladesh.
- NLC India raises Rs 201.8 crore via QIP.
- Gulf Oil starts commercial production at Chennai plant
- AstraZeneca to launch XIGDUO XE tablets in India in Q4FY18. The drug is used for the treatment of Type 2 diabetes in adults
- Mahindra and Mahindra Ltd. to hike prices by up to 3 percent from Jan. 2018.
- McDowell Holdings qualifies as NBFC-CIC, says RBI. Its existing NBFC-ND certificate gets cancelled.
- Fitch places IDBI Bank under ratings watch saying that an upward viability rating is more likely than a downgrade.
- Union Bank to raise Rs 2,000 crore via QIP by allotting 12.93 crore shares at Rs 514.65.
- Godrej Industries approves merger of promoter group company Vora Soaps with itself.
- Quess Corp acquires 45 percent stake in Simpliance Technologies.
- GE, Tata in a strategic tie up to make aircraft engine components in India
- Tata Motors to supply 250 Tigor EVs to EESL.
- GMR Group-Megawide consortium emerges as preffered bidder for Clark Airport project in Philippines.
Commodity Check
- West Texas Intermediate crude was little changed at $56.11 a barrel after falling 2.9 percent.
- Gold was at $1,263.60 an ounce.
- Sugar ended near one-month low at 14.45 cents a pound; down 3.02 percent.
Shanghai Exchange
- Steel trades lower for second day; down 1 percent.
- Aluminium trades lower for third day; down 1.4 percent.
- Zinc trades lower for third day; down 0.5 percent.
- Copper trades lower for third day; down 0.27 percent.
- Rubber trades higher; up 0.11 percent.
Talking Points
- Neither BJP nor Congress happy with exit poll results.
- Net neutrality rules swept aside by Republican-led U.S. FCC.
- GST council to meet for earlier rollout of e-way bills.
- HDFC Bank mulls raising funds through institutional share sale.
- PNB, Union Bank raise Rs 7,000 crore via QIP.
- Disney acquires Star India, Tata Sky stake via Fox Deal.
- Disney CEO Iger reaps $100 Million of stock awards with Fox Deal.
- Lenders seek to extend deadline for Essar Steel resolution plans.
- Modi seeks opposition’s cooperation for meaningful winter session.
- Naysayers will be surprised by India’s Growth: Porinju Veliyath.
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India rose 0.7 percent to 10,355.50 as of 8:10 a.m.
Back home yesterday, exit polls predicted a victory for the Narendra Modi-led Bharatiya Janata Party in Gujarat, giving it a clear majority in the keenly-contested assembly polls in the state. The polls also showed that the party is set to reclaim Himachal Pradesh.
In early trade today, most Asian stocks declined while the dollar headed for headed for its first weekly drop this month after a dovish tone from the Federal Reserve and amid concerns that the Republican tax overhaul package may struggle to pass the Senate.
Uncertainty surrounding the fate of U.S. tax reform is threatening to sour what’s been a stellar run for equities in 2017 as money managers dial back their appetite to take risk amid signs that the eight-year stock rally may not be far from its end.
Here are some of the key events scheduled for this week:
- Russia decides on monetary policy. Policy makers will deliver their second straight quarter-point cut on Friday, bringing the benchmark to 8 percent, according to all 33 analysts surveyed by Bloomberg.
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