Sensex, Nifty End Lower After Hitting Record Highs In Early Trade 

Indian equity benchmarks ended lower, halting their two-day gaining streak after hitting record highs in the opening trade.

The S&P BSE Sensex fell 0.17 percent to end at 40,821.30 and the NSE Nifty 50 fell 0.3 percent to end at 12,037.70. The broader markets represented by the NSE Nifty 500 Index fell 0.4 percent.

The 31-share index had risen as much as 0.57 percent to cross 41,000 for the first time during the opening trade. The 50-stock gauge had risen 0.49 percent intraday to surpass its previous record high of 12,103.05.

The NSE Nifty 50 may be trading at a record high, but that may not be cause for comfort, according to Basant Maheshwari, co-founder of Basant Maheshwari Wealth Advisers LLP.

“The (Nifty) small-cap index is 47 percent off its record high. (That) portfolio is bleeding in the red,” he told BloombergQuint in an interaction. “That's the real problem.”

Foreign institutional investors, he said, are net short in the derivatives market and haven’t covered their shorts yet. And that, according to him, would decide whether the Nifty would sustain its record high. “If you go by anecdotal historical evidence, till the time foreign investors go net long in the derivative markets, Nifty will not sustain its all-time high.”

To decisively move towards 12,500-13,000, which Maheshwari expects to happen in the next three-to-four months, foreigners must buy “big lock, stock, and barrel”.

The market breadth was tilted in favour of sellers. About 1,020 stocks declined and 786 shares advanced on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Media Index’s 3.63 percent fall. On the flipside, the NSE Nifty Private Bank Index was the top sectoral gainer, up 0.61 percent.

Cholamandalam Financial Holdings

• Stock fell as much as 3.5 percent to Rs 471.65.
• Trading volume was almost 15 times its 20-day average.

Mahindra CIE Automotive

• Stock rose as much as 2.8 percent to Rs 150.
• Trading volume was almost 10 times its 20-day average.

Greaves Cotton

• Stock rose as much as 4.4 percent to Rs 140.50.
• Trading volume was more than five times its 20-day average.

Info Edge India

• Stock fell as much as 3.9 percent to Rs 2,530.15.
• Trading volume was more than five times its 20-day average.

Himadri Special Chemical

• Stock rose as much as 8.4 percent to Rs 74.90.
• Trading volume was more than five times its 20-day average.

Shares of Bharti Airtel fell as much as 4.2 percent to Rs 432.55. The stock was the worst performer on Sensex and Nifty.

Of the shares traded, 43 percent were at the ask price and 43 percent were at the bid, according to Bloomberg data. The scrip declined 1.2 percent in the past five days and advanced 16 percent in the past 30 days, Bloomberg data showed.

Indian equity benchmarks reversed gains and traded at day’s low.

The S&P BSE Sensex fell 0.3 percent to 40,778 and the NSE Nifty 50 fell 0.34 percent.

Shares of ICICI Bank extended gains for the second consecutive trading session. The stock rose as much as 2.6 percent to hit an all-time high at Rs 510.85.

The stock traded at 22 times its estimated earnings per share for the coming year, according to Bloomberg data. Of the shares traded, 40 percent were at the ask price and 53 percent were at the bid.

CSB Bank’s Rs 410-crore initial public offering was subscribed 9.67 times as of 1 p.m. on the final day of bidding today.

• Qualified institutional buyers: 4.26 times
• Non-institutional investors: 5.98 times
• Retail investors: 31.44 times

Stocks were mixed on Tuesday after China said Sino-American trade negotiators had another phone call, agreeing to stay in contact as the oft-discussed phase-one deal remains on the horizon.

• The MSCI Asia Pacific Index rose 0.1 percent.
• Topix index rose 0.2 percent.
• Hang Seng Index fell 0.2 percent.
• Shanghai Composite Index was little changed.
• S&P 500 futures were flat.
• The S&P 500 Index advanced 0.8 percent.
• Euro Stoxx 50 futures were flat.

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Source: Bloomberg

RBI Deputy Governor MK Jain says:

• There has been some concern on rising NPAs in Mudra loans.
• Banks must increase monitoring of these loans.
• Need to increase the capacity of microfinance firms to ensure that individuals from low income households are able to access financial services depending on their choice and needs, rather than just the products available to them.
• Microfinance entities could look at collaborating with fintech firms to help them mine customer data and cross sell more products.

Shares of Mahanagar Gas rose as much as 1.7 percent to Rs 1,053, while shares of Gujarat Gas rose as much as 5.7 percent to Rs 201.95.

That comes after brokerage firm Macquarie hiked the price target for both the stocks.

Here’s what the research firm had to say:

On Gujarat Gas

• Maintained ‘Outperform’; hiked price target to Rs 240 from Rs 210.
• Hike FY21/22 EPS estimates by 13-15 percent on better margins and steady volumes.
• See steady sales in Morbi sales as mgmt. plans to augment throughput capacity over the next five years.
• Expect LNG prices to remain soft due to excess supply.

On Mahanagar Gas

• Maintained ‘Outperform’; hiked price target to Rs 1,150 from Rs 1,050.
• Hike FY21/22 EPS estimates by 7-11 percent on better margins and steady volumes.
• Lower domestic gas and LNG prices in near to medium term to support premium margins.
• See material upside to dividend payout given robust cash flow and net cash position.

Shares of Thomas Cook rose as much as 11 percent, the most since Oct. 31, to Rs 170.

The company said that it has completed its corporate restructuring process and demerged its human resources business to Quess Corp.

Each shareholder of Thomas Cook India will accordingly be issued 1,889 shares of Quess Corp of Rs 10 for every 10,000 fully paid up equity shares of Re 1 each.

The record date set for the afore-mentioned scheme at Dec. 6.

Besides, the company also completed the demerger of the inbound business undertaking of Travel Corporation India into SOTC Travel Management and amalgamation of residual Travel Corporation India, TC Travel Services and TC Forex Services with Thomas Cook India.

About 13.5 lakh shares of NCC changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of InterGlobe Aviation fell as much a 4.3 percent to Rs 1,388.50.

India’s aviation regulator has directed the country’s largest airline to ground one Airbus A320neo plane with unmodified Pratt & Whitney engines for every new A320neo it inducts to its fleet, according to PTI report.

The directive comes less than two weeks after the Directorate General of Civil Aviation, or DGCA, gave IndiGo more time to modify Pratt & Whitney engines powering its Airbus A320neo planes.

Indian equity benchmarks erased gains after crossing new milestones.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 40,929 and 12,077 respectively as of 10:40 a.m. The broader markets represented by the NSE Nifty 500 Index, too, traded little changed.

The NSE Nifty 50 may be trading at a record high, but that may not be cause for comfort, according to Basant Maheshwari, co-founder of Basant Maheshwari Wealth Advisers LLP.

“The (Nifty) small-cap index is 47 percent off its record high. (That) portfolio is bleeding in the red,” he told BloombergQuint in an interaction. “That's the real problem.”

Foreign institutional investors, he said, are net short in the derivatives market and haven’t covered their shorts yet. And that, according to him, would decide whether the Nifty would sustain its record high. “If you go by anecdotal historical evidence, till the time foreign investors go net long in the derivative markets, Nifty will not sustain its all-time high.”

To decisively move towards 12,500-13,000, which Maheshwari expects to happen in the next three-to-four months, foreigners must buy “big lock, stock, and barrel”.

Nifty’s 12,000 put 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 29.14 percent to Rs 18.85. Over 4.49 lakh shares were added to the open interest which stood at over 53.17 lakh shares.

Shares of Dish TV, NBCC and Castrol fell while shares of Tata Motors-DVR fluctuated between gains and losses as the stocks will be excluded from F&O Segment. No contract to be made available for trading from Jan. 31, 2020.

Shares of Star Cement rose as much as 5.2 percent to Rs 100.55.

About 10.4 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Trading volume was more than three times its 20-day average, Bloomberg data showed. Of the shares traded, 47 percent were at the ask price and 49 percent were at the bid.

The NSE Nifty Bank Index extended gains for the second consecutive trading session.

The 12-share gauge comprising of banking shares rose as much as 0.76 percent to hit a new all-time high at Rs 31,796.20. It is currently trading above the key moving averages.

The 50-share index surpassed its previous record high of 12,103.05 clocked on June 3, 2019.

Here are the top contributors:

Shares of Zee Entertainment Enterprises extended declines for the second consecutive trading session. The stock fell as much as 9.1 percent to Rs 312.40.

That comes after Media baron Subhash Chandra stepped down as chairman of the company, a week after debt-ridden promoters’ holding in the broadcaster fell to 5 percent after selling additional stake.

The company’s board accepted Chandra’s resignation as chairman with immediate effect, according to an exchange filing. He, however, stays as a non-executive director.

Trading volume was more than two times its 20-day average, according to Bloomberg data. Of the shares traded, 37 percent were at the ask price and 47 percent were at the bid.

Shares of Reliance Industries extended gains for the third consecutive trading session. The stock rose as much as 0.95 percent to Rs 1,576.35. The company is set to cross Rs 10 Lakh crore in market capitalisaiton.

The stock advanced 42 percent in the past 12 months compared to a 17 percent rally in the Sensex.

Indian equity benchmarks crossed new milestones in the opening trade.

The S&P BSE Sensex rose 0.3 percent to trade above 41,000 for the first time and the NSE Nifty 50 rose 0.28 percent to hit a new all-time high at 12,111. The broader markets represented by the NSE Nifty 500 Index rose 0.44 percent.

The market breath was tilted in favour of buyers. About 983 stocks advanced and 486 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 0.6 percent gain. On the flipside, the NSE Nifty Media Index was the only sectoral loser, down 0.46 percent.

Index Futures

• Nifty November futures closed at 12,096.3, premium of 22.6 points versus 0.1 points.
• Nifty November Futures across series open interest up 6 percent adds 8.7 lakh shares in open interest.
• Nifty Bank November futures closed at 31,568.2, premium of 12.3 points versus 3 points.
• Nifty Bank November futures across series open interest up 2 percent, adds 40,000 shares in open interest.
• Rollover-Nifty 26 percent, Nifty Bank 29 percent.

Options

• Nifty PCR at 1.71 versus 1.30 (across all series).

Nifty Monthly Expiry: Nov. 28

• Max open interest on call side at 12,000 (27.1 lakh shares).
• Max open interest on put side at 12,000 (48.6 lakh shares).
• open interest addition seen at 12,000P (+28.6 lakh shares) 12,050P (+10.6 lakh shares), 11.900P (+9.4 lakh shares).
• open interest shedding seen in 12,000C (-21.5 lakh shares), 11,900C (-13.7 lakh shares).

• Tata Steel to meet Somerset Capital on Nov. 26.
• Eicher Motors to meet DNB AMC, Elara Capital and other investors from Nov. 26-28.
• CG Consumer Electricals to meet Goldman Sachs, Yes Securities, Nomura Securities from Nov. 26-28.
• Balrampur Chini Mills to meet Kotak Fund Management on Nov. 26.
• MCX to meet Sundaram MF on Nov. 27.
• TVS Motor to meet Wellington Management Group on Nov. 28.
• Magma Fincorp to meet Nippon Asset Management and Goldman Sachs from Nov. 26-27.
• Mahindra Holiday & Resorts to meet Quest Investments and Enam on Nov. 26.
• IIFL Finance to meet SAIF Partners on Nov. 26.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.1 percent to 71.66 against the greenback.

Indian equity benchmarks are set to open higher.

The S&P BSE Sensex rose 0.32 percent to 41,019 during the pre-market trade and the NSE Nifty 50 rose 0.26 percent to 12,104.

• MOIL ex-date for share buyback
• Mukand Engineers, Nitco to move into short-term ASM Framework
• AU Small Finance Bank, Indo-National, Milkfood to move out of short-term ASM Framework

• CSB Bank IPO gets 4.35 times demand on the second day of sale; offer to close today.

• Zee Entertainment Enterprises: Media baron Subhash Chandra stepped down as chairman of the company a week after debt-ridden promoters’ holding in the broadcaster fell to 5 percent after selling additional stake. The company’s board accepted Chandra’s resignation as chairman with immediate effect, according to an exchange filing. He, however, stays as a non-executive director.
• Sun Pharma: Teva, generics makers said to be in talks to end U.S. probes. (BN)
• Dish TV, NBCC, Tata Motors DVR, Castrol to be excluded from F&O Segment. No contract to be made available for trading from Jan. 31, 2020.
• Goodyear said that it will close its manufacturing operations at Faridabad plant from Nov. 25-30 to align production with market demand.
• InterGlobe Aviation: India’s aviation regulator has directed the country’s largest airline to ground one Airbus A320neo plane with unmodified Pratt & Whitney engines for every new A320neo it inducts to its fleet, according to PTI report.
• Ashok Leyland signed a memorandum of understanding with lClCl Bank to enter into strategic financing partnership for two years to offer customised financial solutions to customers across lndia with focus on semi-urban and rural geographies.
• Thomas Cook said that it has completed its corporate restructuring process, and demerged its human resources business in to Quess Corp. Each shareholder of Thomas Cook India will accordingly be issued 1,889 shares of Quess Corp of Rs 10 for every 10,000 fully paid up equity shares of Re 1 each. Record date set for the afore-mentioned scheme at Dec. 6. Company also completed Demerger of the inbound business undertaking of Travel Corporation India into SOTC Travel Management and amalgamation of residual Travel Corporation India, TC Travel Services and TC Forex Services with Thomas Cook India.
• Ugro Capital has signed SME loan co-origination agreement with State Bank of India.
• Reliance Communications received resolutions plans from VFSI Holdings Pte. Ltd., Bharti Airtel Ltd. and UV Asset Reconstruction Company Ltd. which were presented to committee of creditors of the corporate debtor in the meeting held on Nov. 25.

• The S&P 500, Dow Jones Industrial Average and Nasdaq Composite Indexes reached all-time highs after China said over the weekend that it will tighten intellectual property rules.
• Oil advanced, shedding earlier losses, amid growing optimism about prospects for a settlement in the long-running U.S.-China trade war.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.12 percent hit an all-time high at 12,124 as of 8:30 a.m.

Asian stocks gained Tuesday amid optimism over U.S.-China trade talks and a fresh wave of merger and acquisition activity.

Shares climbed across the region with gains accelerating after Xinhua reported the U.S. and China had agreed to continue phase one trade talks after a call Tuesday. U.S. futures rose.

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