Late Rebound Helps Sensex, Nifty Recoup Most Of Tuesday’s Losses; Bonds Decline

Indian equity benchmarks advanced in the last 30 minutes after a topsy-turvy trade to erase most of yesterday’s losses.

The S&P BSE Sensex rose 0.43 percent to end at 40,412.57 and the NSE Nifty 50 rose 0.45 percent to close at 11,910.15. The broader markets represented by the NSE Nifty 500 Index rose 0.43 percent.

The market breadth, however, was tilted in favour of sellers. About 1,045 stocks declined and 720 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty IT Index’s 1.23 percent advance. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.25 percent.

The yield on 10-year note the reversed losses and advanced nearly five basis points to 6.75 percent.

That comes after S&P flagged risk to sovereign ratings. “S&P May lower India rating if growth doesn’t recover,” it said, according to Bloomberg report.

HDFC AMC

• Stock halted a five-day losing streak and rose as much as 4.6 percent to Rs 3,021.95.
• Haitong Initiated ‘Buy’ with a price target of Rs 3,435.

Manappuram Finance

• Stock rose as much as 5.9 percent to Rs 166.30
• Fresh longs seen high open interest of 9 percent

GAIL

• Stock rose as much as 5.8 percent to Rs 117.50.
• Emkay Maintained ‘Buy’ with a price target of Rs 160
• AGR hit concerns may have gripped stock performance
• Believe the AGR demand is not tenable
• Core business outlook mixed but downsides unlikely; valuations attractive

Safari Industries

• Stock rose as much as 4.9 percent to Rs 599.95.
• Malabar India Fund acquired 1.51 lakh shares or 0.68 percent at Rs 560 each.

Johnson Controls-Hitachi Air Conditioning India

• Stock from a gain of as much as 2.2 percent to fall as much as 1.7 percent
• Trading volume was almost 40 times its 20-day average.

TCNS Clothing

• Stock fell as much as 3.2 percent to Rs 644.10.
• Trading volume was more than 20 times its 20-day average.

Mahindra CIE

• Stock rose as much as 7.1 percent to Rs 161.90.
• Trading volume was almost seven times its 20-day average.

Sterlite Technologies

• Stock fell as much as 11.5 percent to Rs 102.50.
• Trading volume was more than three times its 20-day average.

Shares of KNR Constructions fluctuated between gains and losses to trade 0.46 percent lower to Rs 225.45.

The company bagged an order from Greater Hyderabad Municipal Corporation for Rs 240 crore, according to its stock exchange filing.

Of the shares traded on NSE, 47 percent were at the ask price and 44 percent were at the bid, according to Bloomberg data.

Shares of Coal India extended declines for the seventh consecutive trading session and are set for their longest losing streak since June 25, 2018.

The stock fell as much as 1.2 percent to Rs 185. The scrip declined nearly 10 percent in seven days.

Coal India traded at 6.5 times its estimated earnings per share for the coming year, according to Bloomberg data.

• Counsel representing Jet's RP informs the Tribunal that lack of clarity on air slots has resulted in a chicken and egg situation for Synergy group, the sole resolution applicant for Jet.
• NCLT has directed civil aviation ministry and DGCA to depute a responsible officer for making an appearance on December 17 to provide clarity on air slots.
• Jet’s CoC seeks extension of CIRP by 90 days and an extension in deadline for submission of resolution plans.
• IDBI Bank seeks exemption from making interim finance to Jet as the bank is currently undergoing prompt corrective action and hence has been prohibited by RBI to take fresh exposures.

Source: NCLT Proceedings

Shares of Kotak Mahindra Bank extended gains for the second consecutive trading session. The stock rose as much as 1.4 percent to hit an all-time high at Rs 1,685.55.

The stock returned 1.7 percent in the past five days and 3.9 percent in the past 30 days, according to Bloomberg data. The scrip traded at 35 times its estimated earnings per share for the coming year.

U.S. and European equity futures were little changed after a mixed session in Asia amid concern that an American tariff hike on Chinese imports scheduled for Sunday could still go ahead despite reports on progress in trade talks.

• MSCI Asia Pacific Index rose 0.2 percent
• S&P 500 futures were flat.
• The S&P 500 Index fell 0.2 percent.
• Euro Stoxx 50 contracts were little changed.
• Topix index fell 0.3 percent.
• Hang Seng Index rose 0.7 percent.
• Australia’s S&P/ASX 200 Index rose 0.7 percent.
• Shanghai Composite Index rose 0.2 percent.
• South Korea’s Kospi index was up 0.4 percent.

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Source: Bloomberg

Shares of Adani Transmission erased gains and fell as much as 4.8 percent to Rs 320.65.

The company informed the stock exchanges that it has signed pact with Qatar Investment to sell 25.1 percent stake in Adani Electricity Mumbai

“Adani Transmission, Adani Electricity Mumbai and a subsidiary of Qatar Investment Authority have signed definitive agreements for the sale of a 25.1 percent stake in Adani Electricity Mumbai to Qatar Investment Authority and for a shareholder subordinated debt investment by Qatar Investment Authority in Adani Electricity Mumbai (the “Transaction”). The total investment by Qatar Investment Authority in Adani Electricity Mumbai will be approximately Rs 3,200 crore,” Adani Transmission said in a media statement on the exchanges.

Indian equity benchmarks erased opening gains.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 40,261 and 11,858 respectively. The broader markets represented by the NSE Nifty 500 Index, too, traded flat.

• Axis Bank has challenged a communication issued by NSDL pursuant to which the depository has put shares pledged by Karvy to the Bank in abeyance.
• Axis Bank had extended an overdraft against shares facility of Rs 100 crore to Karvy, out of which an amount of Rs 80 crore is due.
• SEBI's order does not apply to the account in which shares pledged to Axis are held. Similarly, the securities are not fully paid as beneficiaries owe money to Karvy, Axis Bank's counsel says.
• SAT will hear the matter tomorrow.

Source: SAT Proceedings

Shares of HDFC Asset Management Company halted a five-day losing streak. The stock rose as much as 2.6 percent to Rs 2,965.95.

Brokerage company Haitong initiated coverage on the stock with a ‘Buy’ rating and a price target of Rs 3,435.

Here’s what the research firm had to say:

• Initiated ‘Buy’ with a price target of Rs 3,435.
• Well positioned to capture positive changes taking place in Indian AMC industry.
• High RoE business and expect to improve further; expect dividend payout ratio of 80 percent over FY20-22.
• HDFC AMC was able to weather out regulatory challenges successfully.

Shares of Hindustan Aeronautics fluctuated between gains and losses and traded 0.58 percent higher at Rs 762.50.

The company has signed a Memorandum of Understanding with workmen on revision of wage structure with effect from Jan. 1, 2017, according to its statement on the exchanges.

Of the shares traded on NSE, 42 percent were at the ask price and 52 percent were at the bid, Bloomberg data showed.

Nifty’s 11,900 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire today, rose 4.58 percent to Rs 35.40. Over 7.13 lakh shares were added to the open interest which stood at over 26.53 lakh shares.

Shares of PC Jeweller extended declines for the fifth consecutive trading session. The stock fell as much as 9 percent to hit a fresh all-time low at Rs 20.75.

“CARE Ratings has downgraded the ratings to the medium-term instrument - fixed deposit programme of the Company to CARE D (FD),” the firm said in a stock exchange filing.

Earlier this week, CRISIL had downgraded rating on bank facilities worth Rs 3937 crore to D from BB+ and A4+ for long term and short term. The downgrade factors in the instances of devolvement of Letter of Credits and overutilization in working capital limits for more than 30 days.

The same is reflective of the fact that the liquidity profile of the group has deteriorated in past few months on account of cash flow mismatches.

Shares of Vodafone Idea extended gains for the second consecutive trading session. The stock rose as much as 8.4 percent to Rs 7.10.

“The company is said to be in talks to sell its optic fibre business to Brookfield Asset Management Inc. and its data centre to the Edelweiss Group as the telco seeks to raise over $2.5 billion from asset sales ahead of a January deadline to pay statutory dues,” Economic Times reported quoting unnamed sources.

The scrip declined 10 percent in the past five days and rallied 74 percent in the past 30 days.

Shares of Piramal Enterprises rose as much as 2.3 percent to Rs 1,647.80.

The Competition Commission of India approved subscription of CCDs of the company by CDPQ. Upon conversion, equity shareholding of CPDQ in Piramal Enterprises will increased from 3.68 percent to 8.99 percent, the government’s statutory body said in a tweet.

The stock fell 21 percent in the past 12 months compared to a 15 percent rally in the Sensex.

Shares of Reliance Industries fell as much as 0.6 percent to Rs 1,552.10. The stock extended fall for the second consecutive trading session.

“Mukesh Ambani-owned Reliance Jio Infocomm Ltd. has submitted the highest bid for the telecom tower and optic fibre assets of Reliance Communications Ltd. under the insolvency process,” BloombergQuint reported quoting two people familiar with the matter.

Besides, ADNOC and Reliance Industries signed an agreement to explore the development of ethylene dichloride facility in Ruwais.

ADNOC would supply ethylene to the potential joint venture and provide access to infrastructure at Ruwais, while Reliance will deliver operational expertise and entry to the large and growing Indian vinyls market, in which it is a key participant.

The scrip traded at 20 times its estimated earnings per share for the coming year, according to Bloomberg data.

Meanwhile, shares of Reliance Communications hit fell for the fourth consecutive trading session, down 4.8 percent to Re. 1.

Shares of Bharti Airtel halted their two-day gaining streak and fell as much as 0.6 percent to Rs 444.50.

The telecom operator plans to seek shareholder’s nod for raising capital via QIP, FCCBS and NCDs on Jan. 3. On Dec. 4, the company had planned to raise $3 billion or Rs 21,500 crore via debt and equity shares or convertible instruments. The equity issuance can lead to a dilution of 6 percent.

Of the shares traded on NSE, 32 percent were at the ask price and 48 percent were at the bid, Bloomberg data showed.

Indian equity benchmarks opened higher, led by the gains in private lenders—ICICI Bank Ltd., HDFC Bank Ltd., and HDFC Ltd.

The S&P BSE Sensex rose 0.2 percent to 40,325 and the NSE Nifty 50 rose 0.21 percent to 11,880. The broader markets represented by the NSE Nifty 500 Index rose 0.2 percent.

The market breadth was tilted in favour of buyers. About 818 stocks advanced and 590 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Media Index’s 0.79 percent gain. On the flipside, the NSE Nifty PSU Bank Index was the only sectoral loser, down 0.22 percent.

Index Futures

• Nifty December futures closed at 11898.2, premium of 41.4 points versus 29.2 points.
• Nifty December futures series open interest up 1 percent, adds 87,000 shares in open interest.
• Nifty Bank December futures closed at 31,226.5, premium of 66.2 points versus 81 points .
• Nifty Bank December futures series open interest up 6 percent, adds 78,000 shares in open interest.

Options

• Nifty PCR at 1.17 versus 1.32 (across all series)

Nifty Weekly Expiry: Dec. 12

• Max open interest on call side at 12,000 (29.6 lakh shares).
• Max open interest on put side at 11,900 (16.3 lakh).
• open interest addition seen in 11,900C (+10.5 lakh shares), 11,950C (+6 lakh shares), 11,850C (+5.2 lakh shares).

Nifty Monthly Expiry: Dec. 26

• Max open interest on call side at 12,000 (27 lakh shares).
• Max open interest on put side at 11.500 (32.3 lakh shares).

• Harrisons Malayalam promoter Rainbow Investments acquired 58,000 shares on Dec. 9.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated much as 0.13 percent to 70.83 against the greenback.

Indian equity benchmarks are set for a positive start.

The S&P BSE Sensex rose 0.1 percent to 40,278.94 during the pre-market trade and the NSE Nifty 50 rose 0.06 percent to 11,863.

• Piramal Phytocare ex-date for amalgamation.
• Uttam Value Steels to move out of ASM Framework.
• TCI Finance to move into short term ASM Framework.
• Sanwaria Consumer to move out of short term ASM Framework .
• Accel, TCI Finance, Karda Constructions, KIC Metaliks price band revised to 10 percent.
• HCL Infosystems, Pokarna price band revised to 5 percent.
• Best Agrolife to move into ASM Framework.

• U.S. stocks fell for a second day as investors pulled back ahead of the Federal Reserve rate decision, U.K. election and Sunday’s tariff deadline.
• The pound fell in early Asia trading Wednesday as an update to an election poll which successfully predicted the 2017 election suggested U.K. Prime Minister Boris Johnson’s Conservative party is on track to win a smaller majority than previously projected.
• Oil eased gains after a surprise build in U.S. crude stockpiles contrasted with analyst expectations for a draw.

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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 11,913 as of 8:20 a.m.

Asian stocks were mixed and U.S. futures saw a small drop amid concern that an American tariff hike on Chinese imports scheduled for Sunday could still go ahead despite reports on progress in trade talks.

After another lackluster open for trading Wednesday, benchmarks in Tokyo and Seoul saw modest declines. Hong Kong and Shanghai shares opened little changed.

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