RIL, Infosys Help Sensex, Nifty Extend Gains To Day Six

Indian equity benchmarks rose for sixth day in a row led by gains in Infosys and Reliance Industries. However, the gains were capped as HDFC twins witnessed some amount of selling pressure.

The S&P BSE Sensex was little changed at 33,588 and the NSE Nifty 50 Index was also little changed at 10,348.75.

Thirteen out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Metal Index's 1.2 percent drop. On the other hand, the S&P BSE Information Technology Index was the top sectoral gainer, up 0.95 percent.

• Engineers India (EIL) has 15 lakh shares worth Rs 28 crore change hands in a block at Rs 184.25 per share.
• Syngene has 9.4 lakh shares change hands in a block.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of sugar makers were witnessing strong buying interest in the last 30 minutes of trade.

• Ugar Sugar Works up 12.5 percent
• Balrampur Chini up 3.2 percent
• Shree Renuka Sugars up 7.4 percent
• Bajaj Hindustan rises 5 percent
• Sakthi Sugars rises 3.8 percent
• Triveni Engineering advances 3.6 percent
• Dhampur Sugar advances 6.9 percent

Finance Ministry Tweets:

• President gives assent to ordinance to amend insolvency & bankruptcy code, 2016
• Ordinance amends sections 2, 5, 25, 30, 35, 240 of the code, and inserts new sections 29a and 235a
• Section 29A is a new section that makes certain persons ineligible to be a resolution applicant
• Those being made ineligible inter alia include willful defaulters
• Those who have their accounts classified as non-performing assets for one year or more
• Also includes those who are unable to settle their overdue amounts
• Include interest thereon & charges relating to the account before submission of the resolution plan
• Those who have executed an enforceable guarantee in favour of a creditor

Aptech

• Stock rose as much as 17.7 percent to Rs 389.90.
• Trading volume was 19.8 times its 20-day average.

Praj Industries

• Stock rose as much as 20 percent to Rs 105.95.
• Trading volume was 7.6 times its 20-day average.

Security & Intelligence Service

• Stock rose as much as 18.8 percent to Rs 1,070.
• Trading volume was 9.2 times its 20-day average.

Speciality Restaurants

• Stock rose as much as 2 percent to Rs 171.10.
• Trading volume was 5.1 times its 20-day average.

Shares of IT companies were witnessing buying in an otherwise subdued session. The NSE Nifty IT Index was the only sectoral gainer, up 0.8 percent.

Unease rippled through China’s stock market on Thursday, with a gauge of large-cap shares plummeting the most since June last year, as investors fretted a bond rout is getting out of control.

The CSI 300 Index sank 3 percent, with losses steepening in the last hour of trading. Sixteen shares declined for each that rose on the gauge. Industrial & Commercial Bank of China Ltd., Ping An Insurance (Group) Co. and Kweichow Moutai Co. were among the biggest drags on Shanghai’s benchmark index. Hong Kong’s Hang Seng Index slid 1.1 percent from a decade-high at 3:36 p.m. local time.

Shares of jewellery makers were trading higher on a sentimental boost after domestic brokerage Motilal Oswal initiated coverage on PC Jewellers with a 'buy' for target price of Rs 490.

• PC Jeweller rose 1.6 percent
• Gitanjali Gems advanced 6.5 percent
• Tribhovandas Bhimji Zaveri gained 3.6 percent
• Tahngamayil Jewellery jumped 5 percent
• Renaissance Jewellery advanced 3.5 percent
• Titan Company rose 2 percent

• Indian equity benchmarks were fluctuating between gains and losses as gains in Reliance Industries and Infosys were offset by losses in ICICI Bank and HDFC Bank.
• The S&P BSE Sensex was little changed at 33,552 and the NSE Nifty 50 Index came below its important psychological level of 10,350.
• The broader markets were trading mixed with the S&P BSE MidCap Index marginally lower and the S&P BSE SmallCap Index rose 0.37 percent.
• Ten out of 19 sector gauges were trading lower led by the S& BSE Metal Index's 0.7 percent drop. On the other hand, the S&P BSE Information Technology was the top sectoral gainer, up 1 percent.
• From the Nifty 50 basket of shares, 33 were declining while 17 were advancing.

• Praj Industries: The Pune-based engineering firm rose as much as 4 percent to Rs 91.90.
• Jai Corp: The Maharashtra-based rubber and plastic products maker rose as much as 7 percent, the most since Nov. 22, to Rs 169.30. Trading volume was 6.3 times its 20-day average.
• GE T&D India: The Noida-based power transmission and distribution equipment maker rose 3.2 percent to Rs 428.
• Ramkrishna Forgings: The Kolkata-based auto component maker rose 6.9 percent to Rs 776.

Shares of the Delhi-based plastic products maker rose as much as 14 percent, the most in over three months, to Rs 555 after the company received a patent from U.S. Patent Authority for method of manufacturing embedded water solube film carrier, the company said in a stock exchange notification.

Shares of the Delhi-based security service provider rose as much as 15.9 percent, the most in over three months, to record high of Rs 1,043.60 after its net profit tripled in July-September quarter.

• Revenue up 35.7 percent at Rs 1,460 crore
• Net profit up 318.4 percent at Rs 59 crore
• EBITDA up 51.3 percent at Rs 74 crore
• Margin at 5.1 percent from 4.6 percent

Shares of the public and private sector lenders were trading on a subdued note as the weekly derivative contract of NSE Nifty Bank Index will expire later in the day. The NSE Nifty Bank Index was down 0.1 percent at 25,737.

• Finolex Cables: The Pune-based electrical components maker rose as much as 2.6 percent, the most since Nov. 20, to record high of Rs 647.85. Trading volume was 27 times its 20-day average.
• Indoco Remedies: The Mumbai-based drugmaker rose as much as 12.28 percent, the most since Nov. 14, to Rs 314. Trading volume was 35.8 times its 20-day average.
• Phoenix Mills: The Mumbai-based real estate developer rose as much as 6 percent, the most since Nov. 9, to Rs 514. Trading volume was 12.6 times its 20-day average.
• Greaves Cotton: The Mumbai-based auto component maker rose as much as 4.8 percent, the most in nearly three months, to Rs 127.90. Trading volume was 8.3 times its 20-day average.

Shares of the Hyderabad-based drugmaker fell as much as 7.5 percent, the most in over two months, to Rs 1,175 after its profit declined in September quarter.

• Revenue fell 17 percent to Rs 125.85 crore from Rs 151.92 crore (YoY)
• Net profit fell 75 percent to Rs 2.59 crore from Rs 10.23 crore (YoY)

Shares of the debt-laden consumer electronic products maker fell as much as 2.77 percent to Rs 12.25 after IFCI sold 22.50 lakh shares or 0.8 percent equity stake at Rs 12.82 each.

Shares of Thomas Cook India rose as much as 6.35 percent to Rs 244.50 while Quess Corp’s shares fell as much as 8.25 percent to Rs 839. Thomas Cook is selling 75 lakh shares (5.4 percent equity) in Quess Corp via open offer at Rs 800 per share starting today till tomorrow.

• We want to sell more number of stock keeping units (SKUs), targeting more than 3,000 SKUs
• Cost of delivery will come down with these stores
• Model would operate at a sustainable cost
• Our online registration strategy is contributing more than 10-12 percent to our total revenues
• Not looking at partnership at one single level
• Want to engage at a very holistic level
• We have been in large and small store formats for a long time
• Got all our assets together to build small store strategy
• Whole idea is to build community network around the store
• Hopeful of opening 1,000 stores by the end of this year
• Idea is to cut down on cost of doing business
• These stores will have less cost of production
• Cost will be 40 percent less than the normal store
• Data from Google will help add members, also create a hyper-local demand
• Local Kirana men are running very small stores, our stores will be much bigger than them

• Apart from December election results, market will be watching for rising crude oil prices
• Central banks pulling out liquidity will be another very important event market will be watching
• Visibility of green shoots in many sectors
• December and March results will benefit from low base effect
• Government also expected to be in overdrive mode after March 2018
• Need to divide inflation in two parts - core and fuel and food inflation
• European junk bond yield at similar levels as U.S. treasury yield
• India Inc performance is impacted by higher real interest rates
• Saudi Arabia is focusing on Aramco IPO, higher oil prices will benefit Aramco IPO
• Saudi Arabia would prefer higher oil price to support the IPO, Russia will have to take a call
• Retail investor focused more on grey market premium and not the brand or track record of HDFC Life
• HDFC Life insurance a great example of how fickle the market is
• Expect domestic liquidity to end the current year at nearly $20 billion
• Banks, NBFCs, MFIs, MFs are set to benefit in long run
• Life insurance currently taxed at around 12 percent
• Expect profit to decline if life insurance taxed at 30 percent

Indian equity benchmarks inched lower led by losses in HDFC, ITC and Kotak Mahindra Bank. However, losses were capped as Bharti Airtel, Infosys and Sun Pharma were witnessing buying interest.

The S&P BSE Sensex fell 0.1 percent to 33,530 and the NSE Nifty 50 index was little changed at 10,340.

Fifteen out of 19 sector gauges were trading higher led by the S&P BSE Telecom Index's 0.9 percent gain. On the other hand, S&P BSE Fast Moving Consumer Goods Index was the top sectoral loser, down 0.1 percent.

• Rupee opened higher at 64.81 per U.S. dollar against yesterday's close of 64.93

The rupee is set to build on Wednesday's gains, as Asian currencies move higher against a weaker greenback which slipped overnight after the Fed minutes. In those minutes policymakers expressed concern about low inflation.

Sentiment towards the rupee has also been bolstered by a Moody's upgrade of India's sovereign which has seen investors pile into fixed income assets. An improvement in global risk sentiment is also seeing foreigners buy Indian assets all of which is expected to underpin the rupee. The implied opening from the forwards markets show the rupee is likely to start trading at 64.78 per dollar.

Meanwhile, the head of treasury at State Bank of India, the country’s largest lender, is betting inflation will stay anchored after the recent uptick, giving the central bank room to cut rates. Bond yields staged a sharp fall earlier this week after the RBI junked an OMO debt sale which was expected to mop up Rs 10,000 crore.

• Nifty November futures closed at 10,358, premium of 15.9 points from 25 points.
• November contracts: Nifty open interest down 2 percent, Bank Nifty open interest down 2 percent.
• India VIX closed 2.3 percent higher at 14.
• Max open interest for Nov. series at 10,500 Call (open interest at 61.3 lakhs).
• Max open interest for Nov. series at 10,300 Put (open interest at 54.3 lakh, up 1 percent).

• Alkyl Amines
• Kesar Terminals
• Monsanto
• Siemens
• Skipper

De Nora (Q2, YoY)

• Revenue down 52 percent at Rs 4.3 crore.
• Net loss of Rs 1 crore.
• EBITDA loss at Rs 0.9 crore.
• Margin at -20.9 percent.

Garware Wall Ropes (Q2, YoY)

• Revenue down 9 percent at Rs 206 crore.
• Net profit up 8 percent at Rs 28 crore.
• EBITDA up 9 percent at Rs 43 crore.
• Margin at 20.9 percent from 17.5 percent.

SIS India (Q2, YoY)

• Revenue up 35.7 percent at Rs 1,460 crore.
• Net profit up 318.4 percent at Rs 59 crore.
• EBITDA up 51.3 percent at Rs 74 crore.
• Margin at 5.1 percent from 4.6 percent.

• RattanIndia Power circuit filter revised to 10 percent.
• Emami Infra circuit filter revised to 5 percent.
• VRL Logistics to buyback shares worth Rs 41.4 crore at maximum Rs 460 per share.
• Manaksia Industries’ name changed to BKM Industries.
• BFL Developers’ name changed to BFL Asset Finvest.

• Thyrocare: Samara Capital sold 7.40 lakh shares or 1.4 percent equity stake at Rs 668.18 each.
• Videocon: IFCI sold 22.50 lakh shares or 0.8 percent equity stake at Rs 12.82 each.
• GATI: Green India Venture Fund sold 18.7 lakh shares or 1.7 percent equity stake at Rs 127.39 each.
• Excel Realty N Infra: Aspire Emerging Fund bought 3.60 lakh shares or 1.1 percent equity stake at Rs 121.5 each.
• Secure Credentials: Kalyani Saraf bought 48,000 shares at Rs 245 each.

• Arrow Greentech secured patent for manufacturing embedded water soluble film carrier in U.S.
• Healthcare Global Enterprises will issue 11.66 lakh shares at Rs 300 each on a preferential basis to Indgrowth Capital Fund 1 (AIF).
• Thomas Cook will sell up to 75 lakh shares (5.4 percent) in Quess Corp via an offer for sale, at Rs 800 per share, on Nov. 23-24.
• Lasa Supergenerics to begin trial production at its Unit IV from Nov. 25.
• Manaksia Steels to acquire Far East Steel Industries, Nigeria
• Tata Teleservices mobile customers to start transitioning to Bharti Airtel’s network.
• IL&FS acquired an additional 49 percent stake in subsidiary IL&FS Asian Infrastructure Managers from ORIX Corporation, Japan for Rs 2.77 crore.
• Info Edge India: Zomato completed acquisition of on demand logistics and delivery company “Runnr”. Info Edge holds 44.74 percent in Zomato.
• Karur Vysya Bank allots 11.7 crore shares via rights issue.
• Sun Pharma stake in ScPharmaceuticals reduces to 12.31 percent from 14.58 percent after latter's IPO.
• Tata Motors: Jaguar to recall 7,000 sedan and SUVs with faulty electronics.
• Eicher launched CV variants for the e-commerce industry.
• RCom’s land in Mumbai gets 8 bidders; eyes 125 acres to raise funds, cut Rs 47,000 crore debt (Times of India)

Motilal Oswal on PC Jeweller

• Initiated ‘Buy’ with a price target of Rs 490; implying a potential upside of of 36 percent from the current market price.
• Enormous opportunity in Indian jewellery led by value migration towards organised players.
• Large nation-wide chains to leverage this shift.
• Expect Revenue, Operating income and net profit to grow at a compound annual growth rate of 21 percent, 24 percent and 30 percent respectively over the next three years.
• Return on capital employed to improve to 19.5 percent by March 2020.
• Return on equity to improve to 19 percent by March 2020.
• Positives: increasing store-level sales and profitability and higher use of franchisees to make the business asset-light
• Bull Case price target of Rs 550: Expect revenue and net profit to grow at a compound annual growth rate of 23 percent and 36 percent respectively over till March 2020.

UBS on Aegis Logistics

• Initiated ‘Buy’ with price target of Rs 280; implying a potential upside of 20 percent from yesterday’s close.
• Aegis to benefit from surge in LPG demand and growing dependence on imported LPG.
• Expect LPG demand to record an 11 percent compound annual growth rate and imports a 16 percent compound annual growth rate for the financial years till March 2022.
• Positives: upcoming terminals, weak competition and LPG pipelines being developed by OMCs.
• Land parcels at key ports could be used for two LPG terminals.
• Expect terminalling market share of imported LPG to increase to 28 percent by march 2021.
• Expect operating income and net profit to grow at a compound annual growth rate of 40 percent and 42 percent over the financial years till March 2020.
• Expect return on capital employed and return on equity to improve to 54 percent and 32 percent by March 2021.

CLSA on Kansai Nerolac

• Initiated ‘Buy’ with price target of Rs 600; implying a potential upside of 24 percent from yesterday’s close.
• High leverage to capex revival augurs well at this point for Kansai.
• Margins to sustain though input prices are on an uptrend.
• Price hikes, improvement in revenue mix and operating leverage to sustain margins.
• Expect revenue to grow at a compound annual growth rate of 16 percent till March 2019. Earnings per share to grow at a compound annual growth rate of 17 percent till March 2020.
• With just 12 percent market share, there is potential to drive market share gains.
• View high valuations with long term opportunity, strong balance sheet and high governance levels.

HSBC on Future Retail

• Maintained ‘Buy’; hiked price target to Rs 730 from Rs 590.
• Unveils aggressive growth strategy and digital future.
• With disciplined execution, Future Retail could unlock a virtuous value creation journey.
• Scale is key competitive advantage and Future can improve its cost economics as it accelerates revenue growth.
• Expect earnings to grow at a compound annual growth rate of 30 percent over by March 2020, driven by operating leverage and store rollout
• Current share price builds in earnings to grow at a compound annual growth rate of 14 percent for 15 years post March 2020.

• Winter session of Parliament likely from Dec.15
• 8 years later Arbind Modi returns to same task - a new income tax law
• Pakistan court orders release of 2008 Mumbai attack suspect Hafiz Saeed
• Indian companies remain stressed but ability to service debt improves
• Godrej Consumer passes on benefit of lower GST rates
• BrahMos missile successfully test fired from Indian Air Force’s Sukhoi jet
• Supreme Court bars Jaypee Associates’ directors from selling assets

• Smog-choked India is giving the filthiest fuel a tax advantage

• India's ‘dirty dozen' debtors lure big funds to bad loans

• SAIL raises its game after government cracks whip
• Jamie Dimon says he’d bet Donald Trump doesn’t win again in 2020
• Wilful defaulters to be barred from buying stressed assets

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India rose 0.2 percent to 10,372.

The dollar held onto losses after tumbling as the latest Federal Reserve meeting minutes highlighted a dovish tilt that showed divisions over the future path for U.S. monetary policy. The yen rose to a two-month high and Asian stocks clung to record levels.

Stocks were steady in Hong Kong and Australia, with subdued trading in the U.S. carrying over into Asia. The MSCI Asia Pacific Ex Japan Index inched higher.

Here are some key events coming up this week:

• Minutes from the European Central Bank’s October meeting due on Thursday could show dissent in the discussion about tapering.
• In Asia, Singapore will probably say on Thursday its economy expanded more than initially estimated in the third quarter, the consensus shows. October CPI is also due.
• New Zealand October trade and South Korea November consumer confidence are due Friday.

Commodities Update

• West Texas Intermediate crude rose was steady at $58.02 a barrel, its highest since mid-2015, as U.S. crude stockpiles declined.
• Gold was little changed at $1,291.02 an ounce.
• Sugar ended higher at 15.28 cents per pound; up 2.7 percent.