Sensex, Nifty Snap 4-Day Losing Streak Led By Infosys

Indian equity benchmarks snapped four-day losing streak led by gains in Infosys. However, benchmarks swung between gains and losses for most part of the day as other heavyweights like Reliance Industries, HDFC Bank and Maruti Suzuki came under selling pressure.

The S&P BSE Sensex rose 0.11 percent to 32,869.72 and the NSE Nifty 50 Index was little changed at 10,127.75. The small cap shares underperformed their larger peers. The S&P BSE SmallCap Index fell 0.52 percent.

Eleven out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Telecom Index's 0.66 percent drop. On the other hand, the S&P BSE Information Technology Index was the top sectoral gainer, up 1.37 percent.

Shares of TTK Prestige and Shipping Corporation of India staged sudden spike in the last 15 minutes of trade.

• Ramco Systems: The Chennai-based IT services firm rose as much as 11.17 percent, the most in over a month, to Rs 502. Trading volume was 12 times its 20-day average.
• Kesoram Industries: The Kolkata-based auto part maker rose as much as 13.31 percent, the most in nearly six months, to Rs 148.60. Trading volume was 9.9 times its 20-day average.
• Rupa & Company: The Kolkata-based innerwear maker rose as much as 8.69 percent, the most since Dec. 1, to Rs 500.20. Trading volume was 7.8 times its 20-day average.
• Ramkrishna Forgings: The Kolkata-based fabricated metal and hardware company fell as much as 2.65 percent, the most since Nov. 30, to Rs 726.30. Trading volume was 11.1 times its 20-day average.

Transformers & Rectifiers: The Gujarat-based electrical power equipment maker rose as much as 5.5 percent, the most since Nov. 30, to Rs 34.50 after it received an order worth Rs 127 crore. With this order, its order book as on date stands at around Rs 937 crore.

Setco Automotive: The Mumbai-based auto component maker rose as much as 14.96 percent, the most in over a year, to Rs 48.40 on the back of strong earnings.

• Revenues up 31 percent at Rs 135 crore.
• Net profit up 1,300 percent at Rs 14 crore.
• Other income of Rs 7 crore.
• Ebitda up 54 percent at Rs 18.5 crore.
• Margins at 13.7 percent versus 11.7 percent.

FIEM Industries: Shares of the Haryana-based auto part maker rose as much as 7 percent, the most in nearly six months, to Rs 953.40 after it signed pact with Asia Industry and Toyota Tsusho Corporation, Japan for establishing joint venture company in India to make Fuel Pump Module and IC Connector Assembly for two and three wheelers.

Jubilant Life Sciences: Shares of the Noida-based pharmaceutical company rose as much as 5 percent to Rs 730 after central government's green panel gave go-ahead for setting up a technical grade pesticide manufacturing unit in Gujarat, which would entail an investment of Rs 250 crore, news agency Press Trust of India reported.

Shares of cement companies were trading lower after the Union Petroleum and Natural Gas Minister Dharmendra Pradhan said the government is planning to curb the imports of petroleum coke, also known as 'pet coke', which is believed to be a major polluter, news agency Press Trust of India reported.

• Ambuja Cements fell 1.31 percent
• Shree Cement declined 1.72 percent
• Dalmia Bharat fell 0.44 percent
• Grasim Industries slipped 1.15 percent
• Ramco Cements declined 1.16 percent
• Century Textiles and Industry slipped 0.74 percent
• OCL India declined 0.94 percent

Shares of the Haryana-based auto part maker rose as much as 7 percent, the most in nearly six months, to Rs 953.40 after it signed pact with Asia Industry and Toyota Tsusho Corporation, Japan for establishing joint venture company in India to make Fuel Pump Module and IC Connector Assembly for two and three wheelers.

Moody's Investors Service expects oil to remain in the $40-60 per barrel range through 2018.

Recent higher oil prices have been supported by expected global economic growth and production restraint by major producing countries, as well as greater geopolitical risk. However, risks to prices, as seen in mid-2017, still persist including reduced consumption at higher prices and increased supply, said Moody’s Investors Service.

Shares of the Noida-based pharmaceutical company rose as much as 5 percent to Rs 730 after central government's green panel gave go-ahead for setting up a technical grade pesticide manufacturing unit in Gujarat, which would entail an investment of Rs 250 crore, news agency Press Trust of India reported.

An Expert Appraisal Committee (EAC) on industry, set up by the environment ministry, vetted the proposal in a meeting recently, the report said.

Meanwhile, BSE has sought clarification from the company on this development following the news report.

• Indian equity benchmarks were trading higher in noon deal led by gains in Infosys, HDFC and Tata Motors.
• The S&P BSE Sensex rose 0.3 percent to 33,929 and the NSE Nifty 50 Index advanced 0.3 percent 10,151.
• Fifteen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE IT Index's 1.76 percent gain. On the other flipside, the S&P BSE Energy Index was the top sectoral loser, down 0.4 percent.
• From the Nifty 50 basket of shares, 27 were trading higher while 23 were among losers.

Shares of metal companies were trading higher after the government said that India plans to auction up to 70 mineral blocks in 2018-19 and expects revenue of Rs 1.25 lakh crore over 50 years from these blocks, the nation’s mines secretary Arun Kumar said in New Delhi.

Shares of 63 Moons Technologies which was earlier known as Financial Technologies (FTIL) fell as much as 5 percent, the most since Nov. 14, to Rs 131.10 after the Bombay High Court Dismissed FTIL's writ petition and allowed merger of National Spot Exchange Ltd with Financial Technologies Ltd (FTIL).

The court gave parties 12 weeks for the procedure.

The NSE Nifty IT Index was the top sectoral gainer, up 1 percent to 11,059 led by gains in the country's second largest software exporter Infosys.

Shares of the automobile company rose as much as 3.1 percent, the most in nearly one month, to Rs 411.25 after its sales rose 58 percent (YoY) to 52,464 units versus 33,274 units in November.

Shares of of the Bangalore-based bio-pharmaceutical firm rose as much as 14 percent, the most in nearly five months, to record high of Rs 510 after Biocon and Mylan NV became the first drugmakers to get the U.S. Food and Drug Administration’s approval for a biosimilar used to treat breast and stomach cancers.

Mylan-Biocon’s trastuzumab, to be sold under the name Ogivri, is a biosimilar to Roche Holdings AG’s Herceptin and the first biosimilar from the joint portfolio to be approved in the U.S., Biocon said in its press statement.

• Difficult to predict how market will grow in coming months
• Can maintain market share if market grows slowly and we keep up production
• Can't maintain market share if demand grows faster than production
• Ability to maintain market share depends on car demand
• Total capacity of unit when run on both shifts will be 20,000 per month
• Should reach 20,000 mark in next 4-5 months
• Total capacity of unit when run on both shifts will be 20,000 per month
• Commodity price rise has an adverse effect on total production cost
• Hedging done earlier this year has offset commodity price rise impact
• Need for price rise will depend on all the factors including production cost
• The decision for price increase will be taken in the due course of time
• Decision on EVs cannot be delayed any further
• Government policy on EVs is very clear
• Maruti as the no. 1 car manufacturer has to conform to government policy
• Suzuki along with Toyota is trying to give Maruti a leading edge in EV market
• Demand for the new Dzire is very high
• Would be ramping up production of Dzire to 20,000 per month
• Will launch an SUV higher than 4 meters

Shares of the country's second largest software exporter rose as much as 2.88 percent, the most since Nov. 23, to Rs 986.40 after its board of directors appointed Salil Parekh as managing director and chief executive officer of the company.

Parekh will take charge from interim CEO UB Pravin Rao on Jan.2, 2018. The development comes nearly four months after Vishal Sikka’s resignation.

Shares of the Mumbai-based educational service provider rose as much as 14.05 percent, the most since Nov. 30, to Rs 92.95 as Subhash Chandra promoted Zee Learn is in talks with MT Educare to buy controlling stake in the company, The Economic Times newspaper reported.

Zee initially plans to buy the entire promoter block of 42.78 percent and will make an open offer for another 20 percent stake, the newspaper reported citing multiple sources.

Shares of the Mumbai-based auto parts maker rose as much as 10.21 percent, the most since Nov. 29, to Rs 46.40.

• Revenues up 31 percent at Rs 135 crore.
• Net profit up 1,300 percent at Rs 14 crore.
• Other income of Rs 7 crore.
• Ebitda up 54 percent at Rs 18.5 crore.
• Margins at 13.7 percent versus 11.7 percent.

Shares of the Mumbai-based electronic products maker rose as much as 7.3 percent, the most since Nov. 30, to Rs 55.65 after company raised Rs 144 crore via allotment of shares and warrants to non-promoter group (Ashish Kacholia and others) at Rs 37.53 per share and warrant.

• Gujarat elections dictating market movement for now
• Street worried about GDP having topped out
• Market believes BJP will win, margin of win key to watch
• Have been valuing markets based on liquidity in the last 1 year
• Do not expect big earnings surprise next year
• Expect Nifty earnings growth of 10-12 percent on FY19 basis
• Margin levels would be key to watch for Infosys going ahead
• Infosys a value pick at current price
• Midcap IT like Mastek, L&T Infotech outperforming Largecap IT shares

Indian equity benchmarks moved higher led by gains in Infosys which rose nearly 3 percent after the company over the weekend informed exchanges that it has appointed Capgemini's Salil Parekh as MD and CEO who will take charge from Jan. 2, 2018.

However, the benchmarks gave up early gains as Reliance Industries, L&T and Sun Pharma came under selling pressure.

The S&P BSE Sensex rose 0.24 percent to 32,913 and the NSE Nifty 50 Index advanced 0.23 percent to 10,145.

Thirteen out of 19 sector gauges were trading lower led by the S&P BSE Power Index's 0.57 percent drop. On the other hand, the S&P BSE Telecom Index was the top sectoral gainer, up 0.43 percent.

• Rupee opens lower at 64.55 per dollar against Thursday's close of 64.46.

• Nifty December futures trading at 10,154, premium of 32 points versus 52 points
• December Futures- Nifty open interest up 3 percent, Bank Nifty open interest up 8 percent
• India VIX at 14.7, up 9 percent
• Max open interest for December series at 10,500 call, open interest at 57.8 lakh shares, up 17 percent
• Max open interest for December series at 10,000 put, open interest at 79 lakh shares, up 15 percent

• Alphageo
• Fiem Industries
• GPT Infra
• Lumax Auto
• Nestle India
• Sandur Manganese
• Shirpur Gold
• Shree Pushkar Chemicals
• Southern Petro
• Virinchi

Setco Automotive (Q2, YoY)

• Revenues up 31 percent at Rs 135 crore.
• Net profit up 1,300 percent at Rs 14 crore.
• Other income of Rs 7 crore.
• Ebitda up 54 percent at Rs 18.5 crore.
• Margins at 13.7 percent versus 11.7 percent.

Mahindra Logistics (H1, YoY)

• Revenues up 37 percent at Rs 1,688 crore.
• Net profit up 29 percent at Rs 28.7 crore.
• Ebitda up 48 percent at Rs 51.8 crore.
• Margins at 3.1 percent versus 2.9 percent.

Escorts Ltd

• Escorts Benefit and Welfare Trust sold 36 lakh shares (2.9 percent) at Rs 701.15 each
• Emerging Markets Equity Fund bought 23.7 lakh shares (1.9 percent) at Rs 697.65 each

5Paisa Capital

• Altavista Capital India Fund bought 1.19 lakh shares (0.5 percent) at Rs 199.89 each
• Lobco Ltd bought 88,906 shares (0.5 percent) at Rs 198.83 each

Digjam Ltd

• JSL enterprises bought 4.55 lakh shares (0.5 percent) at Rs 18.85 each

Sri Adhikari Brothers

• Canara Bank securities sold 2.17 lakh shares (0.6 percent) at Rs 18.9 each

Sadbhav Infra

• Xander Investment Holding XVII Ltd sold 1.20 crore shares (3.4 percent) at Rs 136.02 each

Hubtown

• Epoch Synthetics sold 3.8 lakh shares (0.5 percent) at Rs 134.3 each

Mold Tek

• UNO Metals bought 2.08 lakh shares (0.8 percent) at Rs 74.91 each
• N G Industries sold 2.10 lakh shares (0.8 percent) at Rs 75.54 each

Apcotex Industries

• Promoter Devanshi Anant Veer Jalan sold 1.26 lakh shares (0.6 percent) at Rs 471.05 each

• Infosys appoints Salil Parekh as MD and CEO from January 2, 2018
• Biocon says U.S. FDA approves Trastuzumab which will be used for treatment of patients with breast or metastatic stomach cancer
• Coal India production for the month of November at 51.29 million tonne. Offtake for the month of November at 50.67 million tonne
• Dr. Reddy’s Labs gets EIR from U.S. FDA for CPS facility at Telangana
• JSW Energy secured PPAs aggregating to 208 MW. Long term PPA proportion of the company increased to 69.3 percent from 64.6 percent in Q2FY18.
• Asahi India Glass to make strategic investment in Timex Group Precision Engineering
• Transformers & Rectifiers received order worth Rs 127 crore from Power Grid
• Tata Steel to acquire 74 percent stake in Bhubaneshwar Power for Rs 255 crore from JL Power Ventures
• VST Tillers November sales up 34 percent (YoY) at 2,922 units versus 2,179 units
• TVS Motor Company’s November sales up 12 percent (YoY) at 2,51,965 units versus 2,24,971 units
• Tata Motors November sales up 58 percent (YoY) at 52,464 units versus 33,274 units
• Hero MotoCorp November sales up 26 percent (YoY) at 6,05,270 units versus 4,79,856 units
• Wipro faces $140 million lawsuit from National Grid U.S. over ERP implementation
• Eris Lifesciences to avail loan of Rs 400 crore from Axis bank. Loan proceeds to partly fund strides deal
• DLF to raise Rs 11,250 crore via CCDs, warrants and QIP
• Astral Poly Technik hikes stake in Astral Pipers Kenya from 37.5 percent to 50 percent
• Mirc Electronic to raise Rs 144 crore via allotment of shares and warrants to non-promoter group (Ashish Kacholia and others) at Rs 37.53 per share and warrant

• Future Retail Board approves allotment of 93 lakh shares at Rs 537 per share to Hypercity Retail shareholders

IDFC’s India Strategy

• Expect Nifty earnings to register 15.1 percent compounded annual growth rate by March 2019.
• March 2019 Nifty earnings per share target at Rs 579. i.e., 20.9 percent YoY growth.
• Asset-heavy and export-oriented industries to do well as global economy recovers.
• Consumption to find growth impetus from retail credit.
• Overweight on engineering and capital goods, construction, metals and mining, oil and gas, consumer goods, automobiles, media and pharmaceuticals.
• Top large-cap picks: SBI, ONGC, Motherson Sumi, HPCL, Hindalco, BEL, Aurobindo Pharma, & Ashok Leyland.
• Top mid/small cap picks: Kajaria Ceramics, SpiceJet, Ashoka Buildcon, Greenply Industries.
• Top sell: Bajaj Auto.

Edelweiss On DLF

• Maintained ‘Buy’; hiked price target to Rs 273 per share from Rs 185.
• Balance sheet recovery to provide significant operational flexibility.
• NCR residential segment to be focus area.
• Expect gradual uptick in DLF’s operations in coming quarters.
• Positives: Key beneficiary of consolidation, steady rental portfolio, improvement in balance sheet.

Jefferies On Cement

• Cement sector is facing two headwinds in the near term.
• Pet coke ban could lead to 2-11 percent cut in operating income.
• Sand mining ban to impact demand in at least five states.
• Demand will remain subdued in the near term.
• Dalmia Bharat: Downgraded to ‘Hold’ from ‘Buy’; cut price target to Rs 2,957 from Rs 3,038.
• ACC: Maintained ‘Underperform’; raised price target to Rs 1,502 from Rs 1,359.
• Ambuja: Maintained ‘Underperform’; raised price target to Rs 238 from Rs 203.
• Shree Cement: Maintained ‘Hold’; raised price target to Rs 18,188 from Rs 18,109.
• UltraTech: Maintained ‘Hold’; raised price target to Rs 4,210 from Rs 3,585.

CLSA On Infosys’ New MD & CEO

• Salil Parikh’s appointment is a promising choice.
• Salil brings tenured experience with added advantage of working in a global firm.
• This is perhaps the best of three outcomes for Infosys.
• Positives: hire an external CEO within three months and with a long tenure.

• Exporters file over 10,000 applications for GST refunds
• Volvo mulling launch of BS-VI cars in India before April 2020
• MPC likely to hold rates citing inflation worries, says ICRA
• Salil Parekh ‘holistically’ a good candidate for Infosys CEO: Kiran Mazumdar Shaw
• Biocon, Mylan get U.S. FDA approval for biosimilar to Roche’s cancer drug
• Virat Kohli becomes the first captain to score six test double centuries
• U.S. Senate passes tax-cut bill in milestone move
• Soon, policy to restrict pet coke imports: Oil Minister
• Inshorts to raise $15 million, Tiger Global to lead funding round
• Lenders approve Bajaj Hindusthan’s Rs 8,285 crore debt recast
• NSE co-location case: Probe gathers steam, SFIO may be roped in
• Privatise ONGC, selling 18% can fetch rs 41,000 crore: Employees
• BCCI must choose which tiger to ride
• Indian army veterans’ startup claims to be first to crack Facebook’s AI challenge
• Exclusive: ‘Don’t raise the income tax exemption threshold further’

• Fiat Chrysler in talks with Hyundai on partnership

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India rose 0.32 percent to 10,163.

The dollar, yields and U.S. equity-index futures rallied after Senate passage of tax-cut legislation drew focus away from events in the continuing investigation into connections between Donald Trump’s aides and Russia. Asian stocks opened steady.

The greenback recovered some of Friday’s losses, and Treasuries paced gains in yields in Asia on Monday. Stocks were little changed in Tokyo and Sydney, and futures on the S&P 500 index surged, as investors unwound trades triggered by concerns about former national security adviser Michael Flynn’s guilty plea for lying to federal agents.

Here’s a look at what’s ahead for markets in the coming days:

• On Monday, euro-area finance ministers discuss the future of the region, vote for a new president, and debate Greece’s bailout review in Brussels.
• The European Commission College of Commissioners discusses Brexit on Wednesday and will likely make its recommendation on whether sufficient progress has been made to move negotiations onto the future relationship.
• The U.S. faces a partial government shutdown after money runs out on Dec. 8 if Congress can’t agree on a spending bill by then.
• U.S. employers probably hired at a robust pace in November as the unemployment rate held at an almost 17-year low. The Labor Department’s jobs report next Friday may also show a bump up in average hourly earnings.
• Countries setting monetary policy this week include Australia, Brazil, Canada, India and Poland.

Commodities

• West Texas Intermediate crude slid 0.3 percent to $58.20 a barrel.
• Gold fell 0.4 percent to $1,274.97 an ounce.