Sensex, Nifty Halt Two-Day Gaining Streak On Weekly F&O Expiry Day

Indian equity benchmarks ended lower on weekly F&O expiry day, halting their two-day gaining streak.

The S&P BSE Sensex fell 0.19 percent to end at 40,575.17 and the NSE Nifty 50 fell 0.26 percent to close at 11,968.40. The broader markets represented by the NSE Nifty 500 Index fell 0.33 percent.

The market breadth was tilted in favour of sellers. About 1053 stocks declined and 750 shares advanced on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Metal Index’s 2.2 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 4 percent.

KNR Construction

• Stock rose as much as 19.3 percent to Rs 288.
• Trading volume was more than 20 times its 20-day average.

Network18 Media & Investments

• Stock rose as much as 18.5 percent to Rs 30.50.
• Trading volume was more than 17 times its 20-day average.

IRB Infrastructure

• Stock rose as much as 17.8 percent to Rs 89.40.
• Trading volume was more than 11 times its 20-day average.

Aditya Birla Capital

• Stock fell as much as 3.1 percent to Rs 209.30.
• Trading volume was more than double its 20-day average.

Shares of Gayatri Projects extended declines for the fourth consecutive trading session.

The stock fell as much as 20 percent, the most in record, to Rs 69.55, the lowest since August 2015.

The scrip declined 30 percent in four days. Trading volume was more than 10 times its 20-day average, according to Bloomberg data. Of the shares traded, 39 percent were at the ask price and 52 percent were at the bid.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Media Index’s 4.83 percent rally. On the flipside, the NSE Nifty Metal index was the worst sectoral performer, down 0.94 percent.

Indian equity benchmarks fluctuated between gains and losses to trade flat.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 40,649 and 11,996 respectively. The broader markets represented by the NSE Nifty 500 Index, too, traded flat.

Shares of UCO Bank extended gains for the third consecutive trading session. The stock rose as much as 19.8 percent to Rs 22.40.

The scrip rallied 72 percent in three trading session. Trading volume was more than 16 times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.

Nifty’s 12,000 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on today, fell 49.81 percent to Rs 19.65. Over 29.30 lakh shares were added to the open interest which stood at over 49.63 lakh shares.

About 11.5 lakh shares of Aegis Logistics changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Bharat Petroleum Corporation fell as much as 3.2 percent to Rs 527.30.

The Cabinet has approved a strategic divestment of the government’s 53.29 percent stake Bharat Petroleum Corporation Ltd. divestment to a strategic buyer, along with transfer of management control.

The divestment will exclude BPCL’s 61 percent stake in Numaligarh Refinery in Assam, which will be moved out of BPCL before the disinvestment and retained by the government.

Shares of Bharti Airtel swung to a fall of as much as 2.3 percent from a gain of as much as 1.2 percent, while shares of Vodafone Idea swung to a fall of as much as 12.3 percent from a gain of as much as 12.3 percent.

In view of the financial stress faced by major telecom service providers and based on recommendations given by a Committee of Secretaries, the Cabinet has approved:

• To defer receipt of the spectrum auction instalments due from telecom operators for the years 2020-2021 and 2021-22.
• These deferred amounts will be equally spread over the remaining instalments to be paid by the telecom operators without any increase in the existing time period specified for making the instalment payments.
• The interest as stipulated while auctioning the concerned spectrum will, however, be charged so that net present value of the payable amount is protected.
• A telecom operator, opting for the two-year deferment, will provide the government with a financial bank guarantee of the revised annual instalment payable for 2022-23.

(Read the full story and watch the full conversation here)

Shares of Dewan Housing Finance Corporation swung to a fall of as much as 2.9 percent from a gain of as much as 4.9 percent.

That comes after the Reserve Bank of India has superseded the board of Dewan Housing Finance Corporation Ltd. and intends to refer the non-bank lender for resolution under the newly introduced insolvency window for financial service providers.

The RBI appointed R Subramaniakumar, former managing director and chief executive officer of Indian Overseas Bank, as administrator of DHFL. In a statement issued on Wednesday, the regulator said the decision has been taken in light of governance concerns and defaults at the non-bank lender.

The RBI further added that it intends to “shortly initiate the process of resolution of the company.”

Shares of Zee Entertainment rose the most since first day of the month. The stock advanced as much as 18.6 percent to Rs 364, the highest level since Sept. 11.

About 15 crore shares of Zee Entertainment or 15.61 percent equity changed hands in large trades on National Stock Exchange at a price of Rs 304, Bloomberg data showed.

While buyers and sellers were not known immediately, Subhash Chandra-led Essel Group, the promoter of Zee Entertainment Enterprises, had planned sell 16.5 percent shareholding in the media major to financial investors.

After this transaction, the promoter stake in Zee Entertainment will stand reduced to 5 percent, said a company statement. Though Chandra’s son Puneet Goenka remains managing director and chief executive officer and his term, that was to end on Dec. 31, recently received in-principle approval from the company board for a five-year extension. It’s not clear if that will change with new investors coming aboard.

Indian equity benchmarks fluctuated between and and losses in the opening trade.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 40,647 and 11,996 respectively. The broader markets represented by the NSE Nifty 500 Index, too, traded flat.

The market breadth was tilted in favour of buyers. About 814 stocks advanced and 616 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 0.4 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 5 percent.

Index Futures

• Nifty November futures closed at 12,018, premium of 19 points Vs 29 points
• Nifty November Futures open interest down 4 percent sheds 6.6 lakh shares in open interest
• Nifty Bank November futures closed at 31,321, discount of 32 points Vs premium of 23.4 points
• Nifty Bank November futures series open interest down 3 percent, sheds 60k shares in open interest

Options

• Nifty PCR at 1.58 versus1.45 (across all series).

Nifty Weekly Expiry: Nov. 21

• Max open interest on call side at 12,000 (20.3 lakh shares).
• Max open interest on put side at 11,900 (22.7 lakh shares).
• Open interest addition seen at 12,000P (+8.6 lakh shares) 11,950P (+7.3 lakh shares).
• Open interest shedding seen at 11900C (-7.5 lakh shares).

Nifty Monthly Expiry: Nov. 28

• Max open interest on call side at 12,000 (24.5 lakh shares).
• Max open interest on put side at 11,900 (24.4 lakh shares).

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.04 percent to 71.84 against the greenback.

Indian equity benchmarks are set for tepid start.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed 40,718 and 12,028 respectively during the pre-market trade.

About 15 crore shares of Zee Entertainment changed hands in a large trade on National Stock Exchange at a price of Rs 304, Bloomberg data showed.

While buyers and sellers were not known immediately, Subhash Chandra-led Essel Group, the promoter of Zee Entertainment Enterprises, had planned sell 16.5 percent shareholding in the media major to financial investors.

After this transaction, the promoter stake in Zee Entertainment will stand reduced to 5 percent, said a company statement. Though Chandra’s son Puneet Goenka remains managing director and chief executive officer and his term, that was to end on Dec. 31, recently received in-principle approval from the company board for a five-year extension. It’s not clear if that will change with new investors coming aboard.

• Kaveri Seed, JB Chemicals & Pharma ex-date for share buyback.
• Karma Energy, Pokarna to move into short term ASM Framework.
• Vikas EcoTech, JMT Auto, RattanIndia Infrastructure, Phyto Chem to move out of short term ASM Framework.
• Magma Fincorp, Steel Exchange India price band revised to 5 percent.

The Cabinet has approved strategic divestment in three listed state-run companies. It will divest:

• Bharat Petroleum: 53.29 percent stake
• Container Corporation of India: 30.8 percent stake, where it owns 54.8 percent stake.
• Shipping Corporation of India: 63.75 percent stake.
• NTPC Ltd. will buy the government’s stake in THDC India Ltd. and North Eastern Electric Power Corporation Ltd.

Telecom Stocks

• Cabinet has also approved deferral of spectrum instalment payments due for years 2020-21 and 2021-22.

• Essel Group In a second effort to raise funds to pay off debt, Subhash Chandra-led Essel Group, the promoter of Zee Entertainment Enterprises, will sell 16.5 percent shareholding in the media major to financial investors. After this transaction, the promoter stake in Zee Entertainment will stand reduced to 5 percent, said a company statement. Though Chandra’s son Puneet Goenka remains managing director and chief executive officer and his term, that was to end on Dec. 31, recently received in-principle approval from the company board for a five-year extension. It’s not clear if that will change with new investors coming aboard.
• DHFL: The Reserve Bank of India has superseded the board of Dewan Housing Finance Corporation Ltd. and intends to refer the non-bank lender for resolution under the newly introduced insolvency window for financial service providers. The RBI appointed R Subramaniakumar, former managing director and chief executive officer of Indian Overseas Bank, as administrator of DHFL. In a statement issued on Wednesday, the regulator said the decision has been taken in light of governance concerns and defaults at the non-bank lender. The RBI further added that it intends to “shortly initiate the process of resolution of the company.”
• Union Bank of India Divergence Report FY19: Divergence in net non-performing assets stood at Rs 589 crore. Divergence in Provisioning was at Rs 1,587.7 crore. Adjusted PAT for March 31 after taking into account divergence in provisioning was at net loss of Rs 3,978 crore versus the reported net loss of Rs 2,947 crore.
• Oil India commenced seismic survey operation in its Rajasthan Block.
• Aurobindo Pharma: U.S. Food and Drug Administration sent Form 483 observations to the company after conducting inspections last month, according to Bloomberg report.
• Dilip Buildcon has received provisional certificate of completion for HAM Project in Maharashtra. Scheduled completion date was May 28, 2020.
• Great Eastern Shipping has contracted to sell its Crude Carrier Vessel, which will be delivered to new buyer in the third quarter of the current financial year.
• Canara Bank: Ministry of Finance gave in-principle approval to proposed amalgamation of Syndicate Bank into Canara Bank.
• Oriental Bank of Commerce: Ministry of Finance gave in-principle approval to proposed amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank.
• Thomas Cook’s arm completed the acquisition of 51 percent stake in BDC Digiphoto Imaging Solutions.

• The S&P 500 Index posted its biggest loss in a month after a report that Washington and Beijing are unlikely to reach a trade deal this year.
• Oil jumps the most since the first of the month as American crude stockpiles at a key storage hub shrank by the most since August.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.1 percent to 12,001.50 as of 8:30 a.m.

Asian stocks and American equity futures dropped after support from the U.S. Congress for Hong Kong protesters set up the potential for further confrontation with China as investors await a trade deal between the world’s two largest economies.

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