KEY HIGHLIGHTS
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MedPlus Health IPO Subscription: Day 2 Live Updates
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Data Patterns IPO Subscription Status: Day 1 Live Updates
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Lupin Jumps After U.S. Classifies Goa Plant As Voluntary Action Initiated'
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Anand Rathi Wealth Shares List At 9.90% Premium Over Issue Price On Market Debut
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Power Grid Jumps 4% In Two Sessions After Jefferies, Kotak Securities Raise Target Price
Closing Bell
India's stock benchmarks logged losses for the third consecutive session, dragged by auto, telecom and select banking stocks. Focus shifts to the Fed policy decision due Wednesday that could induce volatility, amid rising concerns over elevated inflation and risks to economic recovery due to omicron strain.
The S&P BSE Sensex shed 0.29% to 58,117.09. The NSE Nifty 50 index also declined by similar magnitude to 17,324.90. Both the indices fell as much as 0.8% in intraday trade before paring some of the losses. ITC Ltd. had the largest drop, falling 2.6%. Today, 24 of 50 shares fell, while 26 rose.
The S&P BSE MidCap almost mirrored its larger peers shedding 0.37% while the S&P BSE SmallCap closed little changed. Ten of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Power adding 1.39%. On the flipside, S&P BSE Telecom fell nearly 1.4%.
The market breadth was skewed in the favour of bulls. About 1,806 stocks advanced, 1,503 declined and 116 remained unchanged.
"Markets consolidated in a range and ended marginally lower, in continuation to the previous session’s fall. Weak global cues triggered a gap down start however mixed trends across the sectors capped the movement thereafter", Ajit Mishra, VP - Research at Religare Broking Ltd. wrote in a note. He added, "participants are maintaining a cautious stance ahead of the US Fed meeting outcome, which is scheduled on December 15 and we may see a similar trend on Wednesday as well. On the benchmark front, a decisive fall below 17,150 in Nifty would further fuel the negative bias. We reiterate our view to limit leveraged positions and maintain positions on both sides".
RBI Introduces Prompt Corrective Action Framework For NBFCs
PCA framework applies to
All Deposit Taking NBFCs (Excluding Government Companies)
All Non-Deposit Taking NBFCs in Middle, Upper and Top Layers
Excludes NBFCs not accepting/not intending to accept public funds; Government Companies, Primary Dealers and Housing Finance Companies.
Source: RBI Release
NATCO Pharma Shares Jump 3% After Approving Acquisition Of U.S. Pharma Firm Dash Pharmaceuticals
Shares of Natco Pharma rose over 3% to Rs 912.05 apiece after the company approved the acquisition of Dash Pharmaceuticals LLC, U.S., through its subsidiary company.
Cash consideration for the acquisition $18 million.
Dash Pharma expected to have net sales of $15 million for the year ending December 2021.
Source: Exchange Filing
Oil India On Track For Longest Losing Streak In Over Two Years
Shares of Oil India Ltd. declined for the eighth straight day, on track for the longest losing streak since the period ended July 19, 2019.
Oil India has lost a total of 8% during the streak while the NSE Nifty 50 Index fell 0.63%.
S&P BSE Telecom Index Down Over 1% Dragged By Bharti Airtel
S&P BSE Power Index Advances 1%, Aided By Power Grid, Adani Green
Raymond Advances To Record As Company Considers Issuance Of NCDs Amounting To Rs 100 Crore On Private Placement Basis
Shares of Raymond Ltd. rose as much as 7.64% to Rs 708.4 apiece after the company said it will consider and approve the issuance of non-convertible debentures aggregating to Rs 100 crore on a private placement basis, on December 17.
Relative strength on the stock is 74, suggesting it may be overbought. Trading volume on the stock was 1.9 times the 30-day average volume, for this time of the day.
Stove Kraft Shares Rise After ICRA Reaffirms Long-Term & Short-Term Credit Rating & Upgrades Outlook To 'Positive'
Shares of cooking appliances maker Stove Kraft Ltd. rose as much as 2.68%, the biggest intraday gain in four sessions, to Rs 980 apiece after rating agency ICRA Ltd. reaffirmed the long-term and short-term credit rating of the company. ICRA has revised the outlook from 'stable' to 'positive' as well.
All five analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 28.5%.
IRCON International Shares Rise 2% After Company Emerges As Lowest Bidder For Punjab Highway Construction Project
Shares of IRCON International Ltd. rose over 2% in intraday trade to Rs 47.6 apiece after the company emerged as the lowest bidder for highway construction project in Punjab for Rs 1,107 crore. The completion period of the project is two years. The work will be executed by a Special Purpose Vehicle, which shall be incorporated by IRCON as its wholly-owned subsidiary.
Trading volume on the stock was 2.5 times the 30-day average volume, for this time of the day. Shares of IRCON International rose above the 50-day simple moving average in today's session, indicating potential upward price momentum.
Greenlam Industries' Shares Jump Over 18% On Stock Split Approval, Foray Into Plywood & Particle Board Business
Shares of Greenlam Industries Ltd. rose 18.21%, the biggest intraday gain in four sessions, to a record Rs 1,997.4 apiece, after the company's board approved the sub-division of equity shares of the company having face of Rs 5 each to five equity shares of Rs 1 each, on Monday. In an exchange filing, the company said that the share split was done with the intention of encouraging wider participation of retail investors by making the shares more affordable and enhancing liquidity of the company's shares.
In a separate exchange filing on Monday, Greenlam Industries announced entry into plywood and particle board business. The company intends to invest Rs 950 crore over 2-3 years to set up third laminate plant. Greenlam Industries' said that the venture into plywood and particle board segment is to utilise the rising demand in wood panel segment. The investments in laminate plant will be done under Greenlam South Ltd, a 100% subsidiary based in Andhra Pradesh. Greenlam expects to commence the commercial production of plywood and laminate by Q4FY23 and particle board by Q4FY24.
Of the eight analysts tracking the company, six maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 19.2%.
European Markets Open Higher Amid Caution On Omicron Variant
Infosys Selected By Orion Corporation To Transform ERP & Planning Platforms
Infosys Ltd. has been selected by Finland-based Orion Corporation to transform its ERP and planning platforms, enhance employee experience and drive business realisation, the company said in an exchange filing.
Infosys will adopt best SAP practices to enable end-to-end visibility across Orion's operations, reduce business operations cost through AI, ML and robotic process automation (RPA).
Source: Exchange Filing
Axis Bank: Started Working On A Digital Strategy For Wholesale Business About 10 Months Ago
Bank focussing on fully-digitised on-boarding of corporate customers
Also pushing mobile-first proposition for SMEs
Talking to corporate clients about capital expenditure, which will pan out over 9-12 months
Adopting an ecosystem approach to drive business to customers associated with the corporate clients
Axis Bank seeing large capex demand from renewables sector, says Rajiv Anand, deputy managing director, Axis Bank
Also seeing demand from roads, ports, speciality chemicals
Customers have also been able to deploy capex through internal accruals as they have been deleveraging their balance sheets
Private capex demand in FY22-23 will be larger than what we saw in the last 3-5 years
Banks talking to RBI for extension on moratorium for corporate loans restructured under first Covid restructuring scheme, says Rajiv Anand, DMD, Axis Bank
Banks are currently discussing the proposition with RBI
Axis Bank not seeing the need for such an extension for its own restructured loans
Source: Axis Bank press briefing
Adani Realty Is Said To Be In Talks To Buy Ozone Group, Reports Bloomberg
BLOOMBERG EXCLUSIVE
Gautam Adani's realty unit Adani Realty is in advanced talks to take over Ozone group, at an enterprise of $1 billion.
Adani Realty seeks to take over Bengaluru-based Ozone, which has an outstanding debt of Rs 6,000 crore.
Source: People familiar with the matter
A spokesman of Adani Group declined to comment.
Mid-Day Market Update: Sensex, Nifty Decline; Kotak Mahindra Bank Edges Lower
India's stock benchmarks came off morning lows, but still traded lower, dragged by auto, banking, consumer durables and realty stocks. Focus shifts to Federal Reserve meeting tomorrow, in which the U.S. central bank is expected to accelerate the plans to taper monetary stimulus, an event that could trigger volatility in markets.
The S&P BSE Sensex fell 0.3% to 58,091.93. The 30-stock gauge shed over 0.8% to 57,803.87 in intraday trade. The NSE Nifty also declined by similar magnitude to 17,319.70. Kotak Mahindra Bank Ltd. had the largest drop, falling 2.3%. In midday trading, 30 of 50 shares fell, while 20 rose
The S&P BSE MidCap underperformed its larger peers shedding 0.71% while the S&P BSE SmallCap remained little changed.Eleven of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Realty index falling over 1%.
The market breadth was skewed in the favour of bulls. About 1,685 advanced, 1,513 declined and 134 remained unchanged.
Can Fin Homes To Pay An Interim Dividend Of Rs 1.50 Per Share
Can Fin Homes Ltd. declared an 'interim dividend' of Rs 1.5 per equity face of face Rs 2 each for the financial year 2021-22.
The company has declared December 24 as the record date to determine the list of eligible members for the payment of interim dividend.
The interim dividend shall be credited before December 31.
Source: Exchange Filing
Wholesale Inflation Shows A Spike In November
WPI inflation at 14.23% in November 2021 compared to 12.54% in October.
Month-on-month wholesale inflation rose 2.7% in November, compared to a rise of 1.24% in October.
Source: Ministry of Commerce and Industry
Also Read: WPI Inflation Spikes To 14.2% In November
TTK Prestige Jumps To A Record As Stock Split Comes Into Effect
Shares of TTK Prestige rose 7.85% in intraday tradeto hit a record Rs 1,264.65 before erasing the gains.
Trading volume was 73.5 times the 30-day average volume, for this time of the day.
The company approved sub-division of equity shares of the company from face of Rs 10 each into Rs 1 each. The stock split goes effective from today.
Of the 11 analysts tracking the company, seven maintained 'buy', two maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 1.3%.
Zomato Appoints Nitin Savara As Deputy CFO & Anjalli Ravi Kumar As CSO
Nitin Savara has been appointed as deputy Chief Financial Officer of the company
Anjalli Ravi Kumar appointed as Chief Sustainability Officer.
Neither of them designated as a key managerial personnel.
Source: Exchange Filing
MedPlus Health IPO Subscription: Day 2 Live Updates
Retail investors led the bidding for shares of MedPlus Health Services Ltd. on the second day of its initial public offering.
Subscription Details: Day 2
The IPO was subscribed 1.20 times as of 3:01 p.m. on Dec. 14.
Institutional investors: 0.09 times.
Non-institutional investors: 0.37 times.
Retail investors: 2.19 times.
Employees: 0.95 times.
Metro Brands IPO Subscription Status: Day 3 Live Updates
Billionaire investor Rakesh Jhunjhunwala-backed Metro Brands Ltd.'s initial share sale continued to receive lukewarm response on the final day. The issue was subscribed 27% and 52% on its first and second day, respectively, led by demand from retail investors.
Subscription Details: Day 3
The IPO was subscribed 2.76 times, or 276%, as of 3:06 p.m. on Dec. 14.
Institutional investors: 6.98 times.
Non-institutional investors: 1.09 times.
Retail investors: 1.06 times.
Data Patterns IPO Subscription Status: Day 1 Live Updates
Data Patterns (India) Ltd., a defence and aerospace electronics solutions provider, saw its initial public offering fully subscribe within an hour of opening, led by retail demand.
Subscription Details: Day 1
The IPO was subscribed 2.48 times as of 3:09 p.m. on Dec. 14.
Institutional investors: 0 times.
Non-institutional investors: 1.05 times.
Retail investors: 4.45 times.
All Constituents Of NSE Nifty Realty Index Decline
All Constituents Of NSE Nifty Auto Index Decline
India Yields Mostly Lower
Most yields along the India sovereign yield curve fell, with 3-year bonds moving the most in Tuesday morning trading.
The 1-year yield rose 0.8bps to 4.286%
The 10-year yield fell 0.6bps to 6.365%
The 30-year yield was little changed at 6.962%
The 1-year-10-year yield spread was 207.9bps, vs previous close 209.3bps
Source: Bloomberg
Aditya Birla Fashion Shares Jump After Company Approves Acquisition Of Reebok's Operations In India
Aditya Birla Fashion & Retail shares jump after company approves the acquisition of exclusive online and offline rights of 'Reebok' for Indian market.
Approval also given to purchase certain assets of Reebok India Company.
The cost of acquisition is estimated to be between Rs 75 crore and Rs 100 crore.
Source: Exchange Filing
Analyst Actions
Minda Industries raised to 'buy' from 'hold' at Systematix Shares & Stocks; price target at Rs 1,220.
Source: Bloomberg
Lupin Jumps After U.S. Classifies Goa Plant As Voluntary Action Initiated'
Shares of Lupin rose 10% to Rs 972.4 apiece after it received Establishment Inspection Report (EIR) from U.S. FDA for its Goa manufacturing facility.
EIR received after inspection of facility in September 2021
US FDA determined the facility's classification as 'Voluntary Action Indicated'
Source: Exchange Filing
What is 'Voluntary Action Indicated'?
According to U.S. FDA, VAI or Voluntary Action Indicated, means that objectable conditions were found and documented but the agency is not prepared to take or recommend regulatory action.
Of the 42 analysts tracking the company, 21 maintained 'buy', 11 maintained 'hold' and 10 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 5.1%.
L&T Construction Arm Bags Rs 2,500 Crore-Rs 5,000 Crore Order From Odisha Govt
The construction arm of Larsen & Toubro secured a large order for its buildings and factories business from the Government of Odisha.
The order pertains to the construction of clinical blocks & allied infrastructure for a state-of-the-art hospital in Cuttack.
The duration of this project is 30 months.
L&T classifies large order to be in the range of Rs 2,500 crore-Rs 5,000 crore.
Of the 42 analysts tracked by the company, 40 maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 17.9%
Anand Rathi Wealth Shares List At 9.90% Premium Over Issue Price On Market Debut
Shares of Anand Rathi Wealth listed at Rs 600 apiece, a 9.09% premium over the issue price of Rs 550 apiece, on the National Stock Exchange.
Power Grid Jumps 4% In Two Sessions After Jefferies, Kotak Securities Raise Target Price
Shares of Power Grid Corp of India Ltd. rose 3% in intraday trade to Rs 210.4 apiece after upward revision of price target by analysts.
Jefferies cited the approval of Rs 15,900 crore worth inter-state transmission projects by the Ministry of New and Renewable Energy as a positive trigger, as it expected the renewable energy generation bids and transmission pipeline to continue to pick up. The potential transmission and distribution project in Ladakh worth Rs 50,000 crore, could also be in the offing for the company, Jefferies said in a note on December 13. The brokerage expects the re-rating in the stock to continue
Kotak Securities has also reiterated its 'buy' recommendation with target price raised to Rs 235 from Rs 210, implied return of 15.96%, in a note December 10.
Shares of Power Grid rose 4% over the last two trading sessions since the price target revisions.
Of the 28 analysts tracking the company, 20 maintained 'buy', six maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 0.5%.
Anand Rathi Wealth Pre-Market Discovery Price At Rs 602.05
Anand Rathi Wealth pre-market discovery price at Rs 602.05 apiece.
Source: Bloomberg
Adani Green Jumps 5% After Signing Agreement To Supply 4,667 MW Of Green Power To Solar Energy Corporation
Shares of Adani Green Energy Ltd. rose 5% to Rs 1,454.85 apiecce after the company signed an agreement with Solar Energy Corporation of India to supply 4,667 Mega Watt of green power. This is the world's largest ever green power purchase agreement, the company said in an exchange filing.
The agreement to supply 4,667 MW is part of the manufacturing-link solar tender of 8,000 MW awarded to Adani Green, in June 2020.
Adani Green has already signed PPAs with Solar Energy Corporation for total generation capacity of close to 6,000 MW of the 8,000 MW. The company expects to close the balance 2,000 MW PPA in the next two-three months.
Trading volume on the stock was 4.5 times the 30-day average volume, for this time of the day.
All Constituents Of NSE Nifty Bank Index Barring Axis Bank Decline
Opening Bell: Sensex, Nifty Open Lower; Reliance, Infosys Decline
India's stock benchmarks opened lower, dragged by losses in information technology, metal, consumer durables and banking stocks. Focus shifts to the U.S. Federal Reserve policy decision due tomorrow as well as a host of central bank meetings, as elevated inflation and omicron variant threaten the pace of economic recovery.
The S&P BSE Sensex fell 0.62% to 57,921.36. The NSE Nifty 50 declined by similar magnitude to 17,267.80.
The S&P BSE MidCap almost mirrored its larger peers shedding 0.5% while the S&P BSE SmallCap ourperformed, with 0.2% fall. Thirteen of the 19 sectoral indices compiled by the BSE Ltd. declined with S&P BSE Finance shedding nearly 1%.
The market breadth was skewed neither in the favour of bulls nor bears. About 1,177 stocks advanced, 1,195 declined and 106 remained unchanged.
Adani Green Signs An Agreement With Solar Energy Corporation Of India To Supply 4,667 MW Of Green Power
This is the world's largest ever green power purchase agreement
Agreement is part of a manufacturing-linked solar tender of 8,000 MW awarded to Adani Green in June 2020.
Source: Exchange Filing
Sun Pharma Sued Over Patent On Sedative For Intubated Patients
Sun Pharmaceutical Industries Ltd. has been accused in a lawuit by WG Critical Care and ACB Dobfar's InfoRLife in the U.S. District Court for Delaware, of patent infringement. The case relates to a generic version of a sedative used during treatment in critical care setting.
The two companies have seeking a court order to block the copies of its product while case proceeds and until patent has expired, as per the complaint. The patent expires in June 2038.
Source: Bloomberg, Court Filings
Analyst Actions
Axis Capital Ltd. initiates coverage of Max Healthcare Institute Ltd. with a 'buy' recommendation; price target at Rs 465.
Source: Bloomberg
Retail Inflation Rises In November
HFCL Raises Rs 600 Crore Via QIP Issue
Company approved the issue and allotment of 8.72 crore shares to 21 qualified institutional buyers at the issue price on Rs 68.75 per share, on December 10.
Trading of the newly allotted equity shares commences from today.
Source: Exchange Filing
Data Patterns To Launch Its Three-Day IPO Today
Also Read: Data Patterns IPO: All You Need To Know
SGX Nifty Hints At Opening Losses; Anand Rathi Debut, Vedanta, ITC In Focus
Asian stocks were mixed on Tuesday amid a host of central bank meetings, globally to arrest rise in inflation and risks to reopening due to the Omicron virus strain.
Japanese stocks were volatile. Australian and South Korean shares slipped, while U.S. equity contracts advanced. The S&P 500 on Monday dropped from a record and the technology-heavy Nasdaq 100 underperformed. Treasuries and the dollar held gains.
India’s SGX Nifty 50 Index futures delivery fell 0.9% to 17,307.50. MSCI AC Asia Pacific Index fell 0.5% to 192.45. NSE Nifty 50 Index lost 0.8% Monday to 17,368.25
Focus shifts to the Fed policy decision due Wednesday that could induce volatility.
Elsewhere, crude oil held a retreat. Bitcoin traded in the vicinity of $47,000, over 30% fall from a November record high.
Back home, foreign investors sold net Rs 27,400 crore of stocks on Monday, according to NSDL website.
India’s consumer prices rose 4.9% last month from a year earlier, compared with a 4.5% increase in October, the Statistics Ministry said in a statement Monday. The median estimate was for a 5.1% gain in a Bloomberg survey of 35 economists.
Stocks To Watch
Vedanta: Company and its group entities have settled the retrospective tax dispute with the Indian government following the amendments to the income tax law.
ITC: To hold its first-ever institutional investors and financial analysts' day starting 10:30 a.m.
Ircon: Emerged as the lowest bidder for highway construction project in Punjab for Rs 1,107 crore. Completion period of the project is two years.
Stove Kraft: ICRA has reaffirmed both the long- and short-term credit rating of the company and has revised the outlook to positive from stable.
Anand Rathi Wealth to list on the bourses on Tuesday. The issue was subscribed 9.78 times.