Sensex, Nifty Climb For Third Day But End Off Day’s High

Closing Bell

Indian stocks climbed for a third day, but closed off the day’s high, led by a rally in automakers while banks continued to falter.

The S&P BSE Sensex gained 0.1 percent to 26,394 and the NSE Nifty advanced 0.2 percent to 8,142. The market breadth was in favour of the buyers at 1,034 advances, 580 declines and 268 stocks remaining unchanged.

Despite the three-day recovery, independent market expert Shahina Mukadam said there is still quite a bit of uncertainty in terms of which way will the market move heron. She said the Nifty is likely to remain between 7,900 and 8,500 for the next 2-3 months.

“We need to close above the 8100 level consistently to get some confidence back,” she told BloombergQuint in a phone conversation, adding “8,200-8,190 has become a strong resistance on the upside.”

Mukadam is bullish on the pharma companies after the outcome of the U.S. election and rupee deprecation to near all-time lows. The same factors, she said, should also aid information technology stocks.

“Infosys looks ripe for the picking taking into account the fundamentals and current valuations,” she said. She also likes TCS, Tech Mahindra and midcap names like NIIT Tech and HCL Infosystems.

The NSE Nifty Bank Index dropped 0.3 percent, making it the worst performing sectoral gauge on the exchange. The index has fallen 10 out of the last 12 trading sessions.

European Markets Open Mixed

Most European indices opened to positive as investors await the outcome of the referendum over constitutional reforms in Italy.

Auto Index Extends Wining Streak To Day 3

Rupee Strengthens

The rupee edged higher by 13 paise to 68.64 against the U.S. dollar at the forex market in early trade today on fresh selling of the American currency by exporters and banks.

The rupee yesterday had tumbled by 30 paise to end at a fresh 2016 low of 68.76. It had hit an intraday low of 68.80 mainly due to deteriorating sentiment and worsening impact of fund outflows. The rupee has shed 3.95 percent of its value since the beginning of 2016.

Weakness of the dollar against some currencies overseas and early gains in the domestic equity market supported the rupee today, dealers said.

Foreign investors have pulled out close to $5 billion from the capital markets in November so far amid concerns over the impact of demonetisation mingled with an imminent rate hike by the U.S. Federal Reserve.

(With inputs from PTI)

Chart Of The Day

Mahanagar Gas Rises After Q2 Beats Street

Shares of the gas provider jumped as much as 7.4 percent, extending its advance to fourth day, after its second quarter earnings beat street estimates.

Net profit for the July-September quarter stood at Rs 102.88 crore compared to Rs 72.57 crore in the corresponding quarter last year, the company said in its stock exchange filing. The consensus estimates from analysts stood at Rs 94.7 crore.

Movers & Shakers: Tata Power, Reliance Industries, Triveni Engineering And More

Opening Bell

Indian shares climbed for a third straight session led by metals and telecom companies as investors looked for value buys after a recent drop wiped out most of the year-to-date gains of key benchmarks.

The S&P BSE Sensex gained 0.4 percent to 26,465 while the NSE Nifty advanced 0.4 percent as well to 8,162. The market breadth was also encouraging at 1,103 advances, 318 declines and 432 stocks remaining unchanged.

Money Market Heads Up

Stocks To Watch

• Hindustan Unilever: Sees near-term pressure on currency decision
• Mahanagar Gas: Q2 profit Rs 102 crore, estimate Rs 94.7 crore
• Shilpa Medicare: To consider convertible securities issue on December 1
• Sun Pharmaceutical: Introduces branded opthalmic Bromsite in U.S.
• Timken India: Q2 profit Rs 29.86 crore versus Rs 21.16 crore
• Triveni Engineering: Q2 profit Rs 67.92 crore versus Rs 22.23 crore

Earnings Reactions To Watch

• Cox & Kings
• Sadbhav Engg
• Triveni Engg
• Himachal Futuristic
• Hindustan Composites

Earnings To Watch Today

• Tata Power
• National Fertilizers
• Kanoria Chemicals & Industries
• Tamil Nadu Newsprint & Papers

IPO Watch

• Sheela Foam IPO by existing shareholders’ offer for sale opens; closes on Dec. 1. Company raises Rs 153 crore in share sale.

For a complete list of stocks to watch, click HERE

5 Things To Watch Today

Talking Points

• India RBI relaxes withdrawal of cash from bank deposit accounts
• India proposes higher tax rates, penalties to plug cash ban gaps
• Modi cash shock seen tripping up India’s accelerating economy (Read full article HERE)

• India first half gross borrowing at 56.8 percent of FY17 budgetary estimate
• India said to sell Rs 12,287 crore of FII debt quota, less than plan
• India top court to hear RIL’s plea in KG-D6 arbitration today
• Sebi issues guidelines for exchanges, clearing corps in IFSC
• Uber, Ola services said close to regulatory clearance in India
• Global funds sell Rs 1,440 crore of local stocks; domestic funds buy Rs 1,230 crore yesterday: Provisional data

• PineBridge says bullish on emerging markets despite selloff
• Alchemy’s Ved sees Nifty in 7,800-8,400 range till India budget (Bloomberg)
• Sterlite Power Grid said to file draft prospectus for InvIT (Economic Times)
• Tata Steel, Thyssenkrupp may cut Port Talbot capacity (Reuters)

Good Morning!

The Nifty Futures on the Singapore Exchange, an early indicator of Nifty’s performance in India, remained little changed at 8,152.

Asian stocks declined this morning ahead of Italy’s referendum on constitutional reform while oil retreated back below $47 as OPEC members haggled ahead of meeting on production cuts.

China’s government is stepping up efforts to contain runaway property prices, with the central bank clamping down further on mortgage lending in areas deemed overheated, people with knowledge of the matter said.

U.S. stock benchmarks slipped from records yesterday, on speculation the gains sparked by Donald Trump’s election and expectations his spending will stoke growth had gone too far. Treasuries rose as gold pared its monthly drop.

The Bloomberg Dollar Spot Index edged lower for a third session, extending its decline from a decade high reached last week.