HDFC Bank, RIL Help Sensex, Nifty Extend Record Run

Indian equity benchmarks closed at all-time high for the second consecutive trading session.

The S&P BSE Sensex rose 0.5 percent to close at record high of 41,558.57 and the NSE Nifty 50 rose 0.47 percent to end at an all-time high at 12,221.65. The broader markets represented by the NSE Nifty 500 Index rose 0.34 percent.

Meanwhile, the NSE Nifty Bank Index, too, crossed a new milestone. The 12-share gauge rose 0.32 percent to end at an all-time high at 32,244.25.

The market breadth, however, was tilted in favour of sellers. About 940 stocks declined and 840 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Pharma Index’s 1.2 percent gain. On the flipside, the NSE Nifty PSU bank Index was the top sectoral gainer, up 1.89 percent.

The yield on the 10-year note fell as much as five basis points to 6.7 percent.

KRBL

• Stock hit upper circuit of 20 percent at Rs 265.85.
• Promoters hike stake in the company, acquired 0.24 percent stake or 5.4 lakh shares.

Prestige Estates Projects

• Stock rose as much as 9.6 percent to Rs 359.50.
• Board to consider raising funds via preferential issue on Dec. 20
• Preferential issue is addressed to an identified allottee.

Orient Electric

• Stock rose as much as 6.9 percent to Rs 197.80.
• Initiates Legal Action To Recover Outstanding Amount of Rs 14 crore from two companies.
• The company as already made provisions for this amount in previous reporting periods.

Sunteck Realty

• Stock rose as much as 4.5 percent to Rs 421.85.
• Sells 125 Apartments worth Rs 200 crore in Goregaon Project
• Goregaon Project has 225 apartments and the company is company targeting sales between Rs 300-325 crore.

Dilip Buildcon

• Stock rose as much as 7.6 percent to Rs 424.70.
• Trading volume was more than six times its 20-day average.

MRPL

• Stock fell as much as 7.1 percent to Rs 42.80.
• Trading volume was five times its 20-day average.

MMTC

• Stock rose as much as 17.7 percent to Rs 22.90.
• Trading volume was almost five times its 20-day average.

Bandhan Bank

• Stock rose as much as 5.1 percent to Rs 504.40.
• Trading volume was more than four times its 20-day average.

HDFC Bank Ltd. crossed a new milestone after hitting Rs 7 lakh crore in market capitalisation.

Shares of KRBL rose as much as 15.5 percent, the most since August 2014, to Rs 255.80.

Trading volume was almost 15 times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.

About 26.7 lakh shares of Future Retail changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of the state-run lender fell 3.6 percent intraday to Rs 98.50 each.

Bank of Baroda reported a divergence of Rs 5,250 crore in gross non performing assets for financial year ending 2019.

The shares were trading at 54 times its estimated earnings per share for the coming year, Bloomberg data showed.

Indian equity benchmarks extended gains for the second consecutive trading session to hit fresh all-time highs.

The S&P BSE Sensex rose as much as 0.49 percent to hit a new high at 41,553.45 and the NSE Nifty 50 rose as much as 0.46 percent to hit a fresh lifetime high at 12,221.10. The Broader markets represented by the NSE Nifty 500 Index rose as much as 0.28 percent.

Besides, the NSE Nifty Bank Index, too, hit a fresh record high at 32,293.55 after gaining as much as 0.48 percent.

Shares of Hindustan Unilever Ltd. fell for the second consecutive trading session. The stock fell as much as 2.8 percent to Rs 1,907.35.

Unilever’s Chief Executive Officer Alan Jope is falling short of his predecessor’s growth targets as the maker of Ben & Jerry’s ice cream and Dove soap succumbs to sluggish consumer demand, according to Bloomberg report.

“Sales gains will be slightly below guidance for 2019, and underlying growth will be in the lower half of the company’s multiyear range of 3-5 percent in 2020,” Bloomberg reported quoting the company.

Here’s what analysts had to say about HUL:

Credit Suisse

• Maintained ‘Neutral’; cut price target to Rs 2,150 from Rs 2,180
• Unilever cuts guidance for 2019 implies sharp slowdown for the December quarter.
• India the most important driver for Unilever's guidance cut.
• Expect HUL's revenue growth in December quarter to be below 5 percent, with volume growth at 3 percent.
• Stock has the overhang of the potential stake sale by GSK in March quarter.

Goldman Sachs

• Maintained ‘Sell’ cut price target to 1,730 from 1,771.
• Lower our FY20E-22 EPS by 1-2 percent to factor in slower sales growth.
• Expect volume growth of 5 percent in both December quarter and March quarter for HUL.
• See implication on rural focused cos like Dabur, Colgate and Emami.

JPMorgan

• Maintained ‘Neutral’; cut price target to Rs 2,100 from Rs 2,140.
• Lower EPS estimates for the current and the next financial year by 1 percent and 2 percent respectively as we build in lower revenue growth expectations.
• Expect December quarter’s revenue growth to moderate to 4 percent compared to 7 percent that was seven over the first half of the current financial year.

Six out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 2.1 percent fall. On the flipside, the NSE Nifty Metal Index was the top sectoral gainer, up 0.9 percent.

Nifty’s 12,200 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 Dec. 19, fell 0.41 percent to Rs 24.55. Over 18.06 lakh shares were removed from the open interest which stood at over 30.93 lakh shares.

Shares of Tata Motors extended gains for the second consecutive trading session. The stock rose as much as 2.4 percent to Rs 184.50, its highest since May 28.

The stock rallied 13 percent in the past five days and returned 7.3 percent in the past 30 days.

Housing Development Finance Corporation Ltd. today surpassed Hindustan Unilever Ltd. in market capitalisation.

Shares of MMTC extended gains for the fifth consecutive trading session. The stock rose as much as 17.7 percent, the most since Dec. 6, to Rs 22.90.

Trading volume was more than seven times its 20-day average, Bloomberg data showed. Of the shares traded, about 61 percent were at the ask price and 34 percent were at the bid.

Shares of Future Supply Chain Solutions fluctuated between gains and losses to trade 0.1 percent higher at Rs 489.25.

The company’s board approved an allotment of 37.89 lakh shares to Nippon Express on a preferential basis at a price of Rs 664 per share, which is at a 36 percent premium to the closing prices as on Dec. 17.

Shares of NMDC rose as much as 1.5 percent to Rs 119.

The company received an extension in respect of mining leases for four deposits for 20 years by Chhattisgarh Government. The mining leases were earlier valid up to March 2020.

The company has also received an allocation of Rohne Coal Block, which would ensure the coking coal requirement of NMDC's upcoming steel plant at Nagarnar, Chattisgarh to some extent. The mineral company said in a media statement that the allocation would reduce the import of coking coal.

Shares of Asian Paints fell as much as 0.7 percent to Rs 1,733.65.

About 11.4 lakh shares of the company changed hands in a large trade during pre-market, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Bharti Airtel swung to fall as much as 1.3 percent to Rs 434.15 from as much as 1.6 percent, while shares of Vodafone Idea swung to fall as much as 5.8 percent to Rs 6.50 from a gain of as much as 6.5 percent.

India’s telecom operators will continue to pay cross-network call charges for another year—a move that will benefit the two incumbent operators Bharti Airtel and Vodafone Idea.

For domestic calls, the interconnect use charge of Rs 0.06 per minute will now stay till Dec. 31, 2020, the Telecom Regulatory Authority of India said in a media note today. “From Jan. 1, 2021 onwards, the termination charge for wireless to wireless domestic calls shall be zero.” (Read the full story here)

Besides, about 15 lakh shares of Bharti Airtel changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of New India Assurance extended gains for the second consecutive trading session. The stock rose as much as 8.4 percent to Rs 144.85.

Trading volume was more than 17 times its 20-day average. Bloomberg data showed. The stock declined 32 percent in the past 12 months compared to a 14 percent advance in the Sensex.

Indian equity benchmarks extended gains for the second consecutive trading session to open at fresh all-time highs.

The S&P BSE Sensex rose as much as 0.3 percent to hit a new high at 41,480.91 and the NSE Nifty 50 rose as much as 0.28 percent to hit a fresh lifetime high at 12,199.05. The Broader markets represented by the NSE Nifty 500 Index rose as much as 0.25 percent.

Besides, the NSE Nifty Bank Index, too, hit a fresh record high at 32,293.55 after gaining as much as 0.48 percent.

The market breadth was tilted in favour of buyers. About 845 stocks advanced and 616 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty IT Index’s 0.86 percent advance. On the flipside, the NSE Nifty PSU Bank Index was the top sectoral loser, down 0.83 percent.

• Indiabulls Ventures ex-date for share buyback.
• Arvind Fashions, BGR Energy Systems, Gayatri Projects to move into short term ASM Framework.
• Dhunseri Investments, Rushil Decor Limited to move out of short term ASM Framework.

• Prince Pipes & Fittings will launch its three-day initial public offering on Wednesday as it plans to repay loans and promoters look to pare holdings. The maker of polymer pipes and fitting plans to raise Rs 500 crore by selling 2.81 crore equity shares at Rs 177-178 apiece, according to its red herring prospectus.
• Mazagaon Dock Shipbuilders received the Securities and Exchange Board of India’a approval for IPO. To see a sale of 2.8 crore equity shares (12.5 percent). Earlier in August 2018, the company had received SEBI’s approval for the IPO but did not go ahead with the plan.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.15 percent to 71.08 against the greenback.

Indian equity benchmarks are set to open higher.

The S&P BSE Sensex rose 0.17 percent to 41,423.19 during the pre-market trade and the NSE Nifty 50 rose 0.35 percent to 12,206.40.

• Telecom Stocks: India’s telecom operators will continue to pay cross-network call charges for another year—a move that will benefit the two incumbent operators Bharti Airtel Ltd. and Vodafone Idea Ltd. For domestic calls, the interconnect use charge of Rs 0.06 per minute will now stay till Dec. 31, 2020, the Telecom Regulatory Authority of India said in a media note today. “From Jan. 1, 2021 onwards, the termination charge for wireless to wireless domestic calls shall be zero.”
• NMDC received extension in respect of mining leases for four deposits for 20 years by Chhattisgarh Government. The mining leases were earlier valid up to March 2020. The company has also received an allocation of Rohne Coal Block, which would ensure the coking coal requirement of NMDC's upcoming steel plant at Nagarnar, Chattisgarh to some extent. The mineral company said in a media statement that the allocation would reduce the import of coking coal.
• NBCC received approval from the committee of creditors to take over Jaypee Infratech.
• HDFC reappointed Renu Sud Karnad as Managing Director of the Corporation till September 2022.
• Future Supply Chain Solutions: Board approved allotment of 37.89 lakh shares to Nippon Express on a preferential basis at a price of Rs 664 per share, which is at a 36 percent premium to the closing prices as on Dec. 17.
• Tata Motors: Jaguar Land Rover Automotive Plc plans to sell high-yield bonds for the second time in less than a month following last week’s U.K. election result and an initial trade agreement between the U.S. and China. The company is raising an additional 200 million euros of its 6.875 percent notes due 2026, the proceeds of which will be used for general corporate purposes, according to Bloomberg report.
• Zee Entertainment Enterprises: Brickwork Ratings downgrades ratings to ‘BWR AA’ from ‘BWR AA+’ in connection with 6 percent Cumulative Redeemable Non-Convertible Preference Shares and the Issuer rating. The downgrade in the rating factors in the resignation of certain independent directors and the Company Secretary, along with dilution of controlling stake of the promoter and promoter group which now owns 5 percent in the company and the stepping down of Subhash Chandra as Chairman of the Board.
• Axiscades Engineering Technologies said that it has been selected by Airbus to work on fuselage, product development and customer support services across different Airbus locations.
• Tata Group: Tata Power received National Company Law Tribunal Mumbai’s nod for transferring the Strategic Engineering Division to Tata Advanced Systems. Tata Motors received NCLT Mumbai’s nod for transferring of the Defense Undertaking to Tata Advanced Systems. NCLT Hyderabad’s approval is still pending in respect of application filed by Tata Advanced Systems for both aforementioned schemes.
• TCS: America’s pet speciality retailer Petco to deploy the company’s digital merchandising solutions.
• Whirlpool, Blue Star, Voltas: TCL to enter AC Market in India next month and launch internet enabled models with plans to locally manufacture them, India MD Mike Chen said. (BN)
• Mahindra CIE Automotives: Acacia Group increased its stake from 5.54 percent to 7.73 percent stake in the company on Dec. 10.
• Persistent Systems: HDFC MF increased its stake from 5.17 percent to 7.2 percent stake in the company on Dec. 16.
• Goodyear to close its manufacturing operations for Haryana Plant from Dec. 21-30 to align production with market demand.
• Prestige Estate Projects to consider raising funds via preferential issue on Dec. 20.
• HealthCare Global Enterprises has launched a cancer care center in Mumbai.
• BSE has signed a memorandum of understanding with IHS Markit for developing new bond valuation service in India.
• Nocil promoter Hrishikesh Mafatlal and Gurukripa Trustees increased their stake from 1.01 percent to 64.35 percent, as a result of acquiring the holding of acquirer in Suremi Trading, which held 12.54 percent stake in Nocil.
• Allcargo Logistics has executed the business transfer agreement for sale of its two warehouses for Rs 300 crore.

• The Goods and Services Tax Council will meet today to review the taxation structure for shoring up the revenue as lower-than-expected collections have led to a delay in compensation paid to states.
• The National Company Law Appellate Tribunal will pronounce its judgement over the petition moved by former Tata Sons Chairman Cyrus P Mistry and the two investment firms challenging his removal from the group.

Source: PTI

• U.S. stocks inched upward on Tuesday as manufacturing and housing data topped expectations, just as the sugar rush of a partial trade deal between America and China began to wear off.
• Oil dropped in Asian trading on Wednesday after a report showed a large increase in U.S. crude and gasoline supplies in the past week, stoking demand concerns.
• The pound slumped by the most since January after the prime minister announced plans to set a Brexit deadline of December 2020 with or without a trade deal between the U.K and the European Union.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose as much as 0.2 percent to hit an all-time high at 12,216.

Asian stocks were mixed Wednesday as investors took a breather after the partial U.S.-China trade deal that sent global equities to record highs.

Shares dipped in Tokyo and were little changed in Sydney and Seoul. Hong Kong and Shanghai opened flat. U.S. futures, too, traded unchanged.

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