Sensex, Nifty Extend Fall For Second Day As Infosys, HDFC Bank Drag

Indian equity benchmarks fell for the second consecutive trading session, led by the declines in Infosys Ltd. and HDFC Bank Ltd.

The S&P BSE Sensex fell 0.48 percent to 40,382.37 and the NSE Nifty 50 fell 0.44 percent to end at 11,916.20. The broader markets represented by the NSE Nifty 500 Index fell 0.33 percent.

The market breadth was tilted in favour of sellers. About 925 stocks declined and 842 shares advanced on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty IT Index’s 1.9 percent fall. On the flipside, the NSE Nifty Metal Index was the top sectoral gainer, up 2 percent.

NTPC

• Shares of NTPC rose as much as 3 percent to Rs 118.75.
• That comes after brokerage firm Morgan Stanley upgraded the stock rating to ‘Overweight’ from ‘Equal-weight’ and hiked price target to Rs 152 from Rs 146.7.

Equitas Holdings

• Stock rose as much as 3.5 percent to Rs 91.30
• Fresh longs with high OI of 9 percent
• Volume at 1.5 times its 20-day average.

Godrej Properties

• Stock rose as much as 4 percent to Rs 894.
• The scrip snapped nine-day losing streak, the longest since its listing.

DHFL

• Stock hit an upper circuit of 5 percent
• RBI appointed panel to advise administrator of the company

Network18 Media & Investments

• Stock rose as much as 14.2 percent to Rs 31.70.
• Trading volume was almost 13 times its 20-day average.

FDC India

• Stock fell as much as 2.8 percent to Rs 188.45.
• Trading volume more than six times its 20-day average.

Finolex Cables

• Stock rose as much as 2.5 percent to Rs 365.
• Trading volume was almost two times its 20-day average.

Sterling & Wilson Solar

• Stock rose as much as 9.8 percent to Rs 345.
• Trading volume was almost six times its 20-day average.

Six out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty IT Index’s 2 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 2.3 percent.

Asia stocks were mixed Friday amid muted volumes, as investors awaited further details on U.S.-China trade discussions.

• The MSCI Asia Pacific Index was little changed.
• Japan’s Topix index rose 0.1 percent. Hong Kong’s Hang Seng added 0.2 percent.
• The Shanghai Composite slid 0.6 percent.
• Futures on the S&P 500 Index were rose 0.1 percent.
• The underlying gauge fell 0.2 percent.
• Australia’s S&P/ASX 200 Index added 0.6 percent.
• South Korea’s Kospi rose 0.3 percent.
• Euro Stoxx 50 futures were flat.

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The Reserve Bank of India today said that it has appointed an Advisory Committee to advise the Administrator of Dewan Housing Finance Corporation Ltd.

The panel will include IDFC First Bank Ltd.’s Non-Executive Chairman Rajiv Lall, Managing Director and CEO, ICICI Prudential Life Insurance Co. Ltd. NS Kannan and Chief Executive, Association of Mutual Funds in India NS Venkatesh, the country’s central bank said in a media statement today.

On Nov. 20, RBI had superseded the board of DHFL and intends to refer the non-bank lender for resolution under the newly introduced insolvency window for financial service providers. It also said that it intends to “shortly initiate the process of resolution of the company.”

Shares of DHFL hit an upper circuit of 5 percent for the second consecutive trading session.

Indian equity benchmarks extended declines to trade at day’s low

The S&P BSE Sensex fell over 250 points or 0.63 percent to 40,323 and the NSE Nifty 50 fell 0.6 percent to 11,895. The broader markets represented by the NSE Nifty 500 Index fell 0.55 percent.

Foreign investors continued to pour money into Indian markets after the government rolled back the higher tax surcharge on them—a month that had led to a selloff in July and August.

The overseas investors infused $1.75 billion into Indian stock markets last month.

However, one sector, grabbed 60 percent of the overall FPI inflow. (Click here to read more)

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 Nov. 28, fell 46.97 percent to Rs 36.75. Over 16.29 lakh shares were added to the open interest which stood at over 54.21 lakh shares.

Shares of Network18 Media and Investments extended gains for the fourth consecutive trading session. The stock rose as much as 14.2 percent to Rs 31.70. Meanwhile, shares of TV18 broadcast rose as much as 5.8 percent to Rs 24.50.

The companies clarified on the news of Sony stake purchase report that they are evaluating various opportunities.

“Sony Corp. is in talks to acquire a stake in the Indian television network controlled by billionaire Mukesh Ambani, as the Japanese giant seeks to tap booming demand for content in the South Asian nation,” Bloomberg had reported yesterday quoting people familiar with the matter.

About 10.8 lakh shares of Dish TV changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Gayatri Projects fell for the fifth consecutive trading session. The stock hit a lower circuit of 10 percent at Rs 62.60.

Trading volume was 19 times its 20-day average, Bloomberg data showed. The Relative Strength Index was below 30, indicating that the stock may be oversold.

The stock fell 36 percent in the past five days and fell 30 percent in the past 30 days, according to Bloomberg data.

Shares of Caplin Point Laboratories halted a five-day losing streak. The stock rose as much as 8.3 percent to Rs 332.

Trading volume was more than 10 times its 20-day average, according to Bloomberg data. The stock declined 12 percent in the past five days and fell 16 percent in the past 30 days.

Indian equity benchmarks traded lower after fluctuating between gains and losses in the opening trade.

The S&P BSE Sensex fell 0.28 percent to 40,460 and the NSE Nifty 50 fell 0.3 percent to 11,926. The broader markets represented by the NSE Nifty 500 Index fell 0.32 percent.

Shares of NTPC rose as much as 3 percent to Rs 118.75.

That comes after brokerage firm Morgan Stanley upgraded the stock rating to ‘Overweight’ from ‘Equal-weight’ and hiked price target to Rs 152 from Rs 146.7.

Here’s what the analyst had to say on BHEL:

• Fixed costs under-recovery is reducing, impact of regulations is known.
• Potential government stake sale remains an overhang.
• Risk-reward is attractive; steady commissioning should drive earnings.

Shares of Bharat heavy Electricals fell as much as 1.8 percent to Rs 54.45. The stock extended declines for the second consecutive trading session.

Crisil downgraded the rating of long-term bank facilities to ‘AA’ from ‘AA+’ with outlook revised from ‘Negative’ to ‘Stable’ due to company’s weaker than expected operating performance and the continued decline in net cash levels of the company during the first half of the current financial year.

BHEL traded at 16 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of Laurus Labs halted their two-day losing streak. The stock rose as much as 2.1 percent to Rs 340.

The company has received three observations on the pre-approval inspection for an API manufactured at its two units in Visakhapatnam by the U.S. Food and Drug Administration.

Laurus Labs fell 16 percent in the past 12 months compared to 15 percent gain in the Sensex. The scrip traded at 21 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of RITES fell as much as 3 percent to Rs 296.40.

The government is looking to raise up to Rs 1,100.6 crore via the offer-for-sale mechanism.

The centre plans to sell up to 3.75 crore shares or 15 percent stake at a floor price of Rs 293.5 per share, which is at a discount of 4 percent to closing price on Nov 21. The government’s stake may fall from 87.4 percent to 72.4 percent. The offer-for-sale opens on Nov. 22 and closes on Nov. 25.

Trading volume was 1,339 times its 20-dayaverage, according to Bloomberg data. Of the shares traded, 70 percent were at the ask price and 22 percent were at the bid.

Indian equity benchmarks opened lower, extending declines for the second consecutive trading session.

The S&P BSE Sensex fell 0.14 percent to 40,513 and the NSE Nifty 50 fell 0.19 percent to 11,946. The broader markets represented by the NSE Nifty 500 Index fell 0.08 percent.

The market breadth, however, was tilted in favour of buyers. About 820 stocks advanced and 499 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty IT Index’s 0.65 percent fall. On the flipside, the NSE Nifty Auto Index was the top sectoral gainer, up 0.37 percent.

Index Futures

• Nifty Nov futures closed at 11,974.5, premium of 6 points versus 19 points.
• Nifty Nov Futures open interest down 3 percent sheds 4.7 lakh shares in open interest.
• Nifty Bank Nov futures closed at 31,316.7, discount of 33 points versus 32 points.
• Nifty Bank Nov futures series open interest down 2.5 percent, sheds 46,000 shares in open interest.

Options

• Nifty PCR at 1.52 versus 1.58 (across all series).

Nifty Monthly Expiry: Nov. 28

• Max open interest on call side at 12,000 (37.9 lakh shares).
• Max open interest on put side at 11,900 (28.7 lakh shares).
• open interest addition seen at 12,000C (+13.3 lakh shares) 12,500C (+6.4 lakh shares), 12.000P (+4.7 lakh shares).

• Manappuram Finance to meet Burgundy Asset Management and Kim Eng Securities on Nov. 22.
• Narayana Hrudayalaya to meet Add Capital, Nippon India MF and other investors from Nov. 22-27.
• Shriram City Union Finance to meet Investec Capital Services on Nov. 22.
• Sundram Fasteners to meet SBI MF on Nov. 22.

The Indian rupee opened flat against the U.S. dollar. The home currency traded unchanged at 71.94 against the greenback.

Indian equity indices are set for a tepid start.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 40,642 and 11,970 respectively during the pre-market

• Kaveri Seed, JB Chemicals & Pharma record date for share buyback
• Mohota Industries, S Chand And Company to move into short term ASM Framework
• MT Educare, OM Metals Infraprojects to move out of short term ASM Framework
• Gayatri Projects, S Chand and Company, Tejas Networks, UCO Bank price band revised to 10 percent.

• Rites: Government is looking to raise up to Rs 1,100.6 crore via the offer-for-sale mechanism. Government to sell up to 3.75 crore shares or 15 percent stake at a Floor Price of Rs 293.5 per share, which is at a discount of 4 percent to closing price on Nov 21. Government’s Stake may fall from 87.4 percent to 72.4 percent. Offer for sale on Nov. 22 and Nov. 25.
• TV 18 Broadcast, Network 18 Media clarified on the news of Sony Stake purchase that the company is evaluating various opportunities on ongoing basis.
• Bharat Heavy Electricals: Crisil downgraded the rating of long-term bank facilities to ‘AA’ from ‘AA+’ with outlook revised from Negative to Stable due to company’s weaker than expected operating performance and the continued decline in net cash levels of the company during the first half fiscal of 2020.
• Bank of Baroda said that its South African arm has not indulged in any activity violating regulatory guidelines knowingly. Senior Management has taken cognizance of the issues appearing in the media and the Bank will continue to fully cooperate with law enforcement agencies and courts.
• Laurus Labs has received three observations on the pre-approval inspection for an API manufactured at its two units in Visakhapatnam by U.S. Food and Drug Administration.
• Sterling & Wilson Solar: 73.63 percent of founder’s holding is encumbered. (BN)
• Bajaj Holdings & Investment said that no decision has been taken on any investment in RBL Bank. Company is evaluating many companies on a regular basis.
• Tata Power allotted debentures aggregating to Rs 1,500 crore on Nov. 21.
• Reliance Capital said that non-convertible debenture obligations which were due on Nov. 20 have been delayed.

• U.S. equities slid following losses in Europe and Asia as traders weighed conflicting signals about the outlook for a trade deal between Beijing and Washington. The S&P 500 Index fell for a third day, the longest losing streak in almost two months, but remained within 1 percent of a record high.
• Crude is on track to rise for a third week after China signalled a renewed desire to settle the trade war with the U.S. that has disrupted global energy demand.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 11,969 as of 8:45 a.m.

Asia stocks saw modest gains today amid muted volumes, as investors awaited further details on U.S.-China trade discussions.

Japanese shares recovered after three days of declines, though volumes were down about a fifth. Stocks climbed in Hong Kong, South Korea, Australia, while in China they dipped.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.