Sensex, Nifty End Mixed On A Volatile Day As HDFC Bank’s Losses Offset Gains In RIL

Indian equity benchmarks ended mixed after a topsy-turvy session as gains in Reliance Industries Ltd. were offset by losses in HDFC Bank Ltd.

The S&P BSE Sensex rose 0.02 percent to close at 40,802.17 while the NSE Nifty 50 fell 0.07 percent to 12,048. The broader markets represented by the NSE Nifty 500 Index fell 0.16 percent.

The market breadth was tilted in favour of sellers. About 1,095 stocks declined and 718 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty IT Index’s 0.97 percent fall. On the flipside, the NSE Nifty Metal Index was the only sectoral gainer, up 0.27 percent.

Jagran Prakashan

• Stock rose as much as 10.6 percent, the most since Nov. 21, to Rs 61.05.
• The company plans to consider share buyback on Dec. 9.

Escorts

• Stock rose as much as 4.6 percent to Rs 666.40.
• Fresh longs seen with high open interest of 13 percent.
• Trading volume was more than double its 20-day average.

Adani Transmission

• Shares extended gains for the second consecutive trading session.
• The stock rose as much as 10.1 percent to hit an all-time high at Rs 341.35.
• The scrip rallied 25 percent in the past five days and advanced 19 percent in the past 30 days, according to Bloomberg data.

Grasim

• Stock rose as much as 4.4 percent to Rs 822.
• Vodafone Idea hikes telecom tariffs.
• Grasim is promoter company of Vodafone Idea.

Ujjivan Small Finance Bank’s initial public offering was fulling subscribed on the first day of sale, Bloomberg reported quoting NSE data.

Suven Life Sciences

• Stock fell as much as 20 percent to Rs 251.90.
• Trading volume was more than eight times its 20-day average.

Trident

• Stock rose as much as 10.9 percent to Rs 72.80.
• Trading volume was almost six times its 20-day average.

Coromandel International

• Stock rose as much as 3.2 percent to Rs 490.
• Trading volume was almost five times its 20-day average.

Indian equity benchmarks are set for a volatile close.

The S&P BSE Sensex and the NSE Nifty 50 fluctuated between gains and losses to trade little changed at 40,798 and 12,049 respectively. The broader markets represented by the NSE Nifty 500 Index fell 0.15 percent.

Shares of Tata Power fell as much as 3.1 percent to Rs 55.55 after brokerage firm HSBC cut its price target to Rs 65 from Rs 75.

Here’s what the analyst had to say:

• Maintained ‘Hold’; cut price target to Rs 65 from Rs 75.
• Deleveraging effort and Mundra resolution remains slow in current uncertain environment.
• Regular progress on renewable commissioning and acquisition of distressed power plants provide hope for future.
• Cut price target to factor in delay timeline for resolution and lower coal price.

Investors started December in a risk-on mood, boosting stocks after a better-than-expected reading on Chinese manufacturing spurred hope the global economy is turning a corner.

• Futures on the S&P 500 Index increased 0.3 percent.
• The Stoxx Europe 600 Index gained 0.3 percent.
• The MSCI Asia Pacific Index rose 0.4 percent.
• The MSCI Emerging Market Index climbed 0.1 percent.

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Source: Bloomberg

Shares of Adani Transmission extended gains for the second consecutive trading session. The stock rose as much as 10.1 percent to hit an all-time high at Rs 341.35.

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

The stock rallied 25 percent in the past five days and advanced 19 percent in the past 30 days, according to Bloomberg data.

Shares of Jagran Prakashan rose as much as 10.6 percent, the most since Nov. 21, to Rs 61.05. The company plans to consider share buyback on Dec. 9.

Trading volume was more than two times its 20-day average, Bloomberg data showed. Of the shares traded, 46 percent were at the ask price and 41 percent were at the bid.

The scrip traded at 5.8 times its estimated earnings per share for the coming year, according to Bloomberg data.

TVS Motor Company Ltd.'s sales fell 17 percent to 2,66,582 units in November as against sales of 3,19,965 units in the month year ago.

Key Sales Highlights (YoY)

• Total two-wheeler registered sales dropped 18 percent to 249,350 units in October 2019 as against sales of 3,07,142 units in the same period last year.
• Three-wheeler sales of the company grew by 34 percent to 17,232 units registered in the period.
• Total exports grew 27 percent to 74,060 units in September.
• Two-wheeler exports rose 24 percent to 58,128 units.

Shares of the Chennai-based firm declined 3.2 percent to Rs 462.10 each.

Hero MotoCorp sold 5,16,775 units last month, a fall of 15.3 percent from the year ago period, India’s largest two-wheeler maker said in a statement on the exchanges.

Shares of the company fell as much as 1.3 percent to Rs 2,402.75 after the announcement.

• Kochhar had moved the Bombay High Court challenging her termination as MD and CEO of ICICI Bank and clawback of bonus that was granted to her by the bank.
• Kochhar sought time from the court to amend the petition because ICICI Bank had obtained a post facto approval for her termination from Reserve Bank of India, which is contrary to law.
• Court has kept the issue open and has granted time to Kochhar to amend her petition.

Source: High Court Proceedings

Ten out of 11 sectoral gauges compiled by National Stock Exchange declined, led by the NSE Nifty Pharma Index’s 1.2 percent fall. On the flipside, the NSE Nifty Media Index was the only sectoral gainer, up 0.1 percent.

Shares of JSW Steel rose as much as 2.3 percent to Rs 267.50, while shares of Tata steel fell as much as 1.6 percent to Rs 420.50 after UBS revises outlook.

Here’s what the research firm had to say:

On JSW Steel

• Upgraded to ‘Buy’ from ‘Neutral’; hiked price target to Rs 315 from Rs 290.
• Expansion in margins not priced in; lower raw material costs to aid margins.
• Timely completion of expansion and upgrade projects a key trigger.
• Domestic demand outlook mildly positive.

On Tata Steel

• Downgraded to ‘Sell’ from ‘Buy’; cut price target to Rs 360 from Rs 675.
• Weakening India earnings to delay deleveraging.
• Investors to focus on European turnaround and South-East Asia stake sale.
• Some respite ahead if domestic steel market becomes supportive.

Ashok Leyland

• Stock fell as much as 2.1 percent to Rs 77.50.
• Total sales fell 22 percent year-on-year to 10,175 units.

Escorts

• Stock rose as much as 2.1 percent to Rs 650.50.
• Total sales down 4.5 percent year-on-year to 7,642 units.

Maruti Suzuki

• Stock fell as much as 1.4 percent to Rs 7,144.05.
• Total Sales down 2 percent year-on-year to 1,50,630 units (Bloomberg Estimate: 1,46,598 units)

Tata Motors:

• Stock fell as much as 1.6 percent to Rs 158.95.
• Total sales down 25 percent year-on-year to 41,124 units (Bloomberg Estimate: 38,780 units)

M&M

• Stock rose as much as 0.5 percent to Rs 533.
• Auto sales down 9 percent year-on-year to 41,235 units (Bloomberg Estimate: 41,764 units)
• Mahindra Tractor Sales Down year-on-year 19 percent to 21,032 units (Bloomberg Estimate: 23,706 units)

Catch all the live auto sales update here.

Indian equity benchmarks erased opening gains.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 40,808 and 12,051 respectively. The broader markets represented by the NSE Nifty 500 Index fell 0.2 percent.

The Markit India Manufacturing Purchasing Managers’ Index rose to 51.2 last month from 50.6 in October, according to a statement. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Shares of RBL Bank fell as much as 2.4 percent to Rs 365.05.

The lender’s board has approved the lender’s plan to raise about Rs 825 crore via preferential issue of shares, according to an exchange notification.

The private lender plans to sell 24,238,310 shares aggregating at Rs 340.70 apiece, it said in a statement.

Of the Rs 825 crore, Bajaj Finance Ltd. and East Bridge Capital Master Fund I will be investing nearly Rs 150 crore each, WF Asian Reconnaissance Fund will infuse Rs 224 crore, lshana Capital Master Fund and FEG Mauritius FPI will be investing about Rs 214 crore and 86 crore, respectively, the statement said.

Nifty’s 12,100 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. 5, fell 9.6 percent to Rs 43.35. Over 1.98 lakh shares were added to the open interest which stood at over 23.74 lakh shares.

NSE says:

• Suspends Karvy Stock Broking due to noncompliance of regulatory provisions of the exchange with effect from December 02
• Segments: Capital market, futures & options, currency derivatives, debt, mutual fund service system and commodity derivatives

Source: National Stock Exchange of India Circular

BSE says:

• Deactivated Karvy Stock Broking's trading terminals in equity & debt segments from Dec. 2
• Also put Karvy's terminals in risk reduction mode in equity derivatives, currency derivatives and commodity

Source: BSE Circular

The National Stock Exchange has suspended brokerage Karvy Stock Broking due to non-compliance of regulatory provisions of the exchange with effect from Dec. 2.

Karvy Stock Broking will no longer be able to operate in segments such as the capital market, futures and options, currency derivatives, debt, mutual fund service system and commodity derivatives, according to an NSE circular.

Shares of Bajaj Auto pared pending losses and rose as much as 1.3 percent to Rs 3,217.40 after the company announced its November sales data.

The Pune-based two-and-three-wheeler maker’s total sales fell 1 percent year-on-year to 4.03 lakh units last month, according to its stock exchange filing.

Key Sales Highlights (YoY)

• Domestic motorcycle sales fell 14 percent to 3.43 lakh units.
• Motorcycle exports rose 18 percent to 1.67 lakh units.
• Total motorcycle sales fell 1 percent 3.43 lakh units.
• Domestic commercial vehicles sales rose 6 percent to 31,438 units.
• Commercial vehicles’ exports fell 8 percent to 28,339 units.
• Total commercial vehicle sales fell 1 percent to 59,777 units.
• Total domestic sales fell 12 percent to 2.07 lakh units.
• Total exports rose 14 percent to 1.95 lakh units.

Shares of Cochin Shipyard extended gains for the fourth consecutive trading session. The stock rose as much as 1.9 percent to Rs 409.20.

The shipbuilder signed an agreement with Andaman & Nicobar administration for operation and management of the marine dockyard in Port Blair and for development of ship repair ecosystem for the islands. The company will be entitled to a management fee of Rs 15 crore per annum.

Of the shares traded, 47 percent were at the ask price and 42 percent were at the bid, Bloomberg data showed.

Shares of Yes Bank traded 2 percent lower at Rs 66.95 after falling as much as 7.7 percent.

After a 12-hour long board meet on Friday, the board of the company approved the issue of $2 billion worth of equity shares on a preferential basis to a clutch of investors.

Here’s what analysts had to say about Yes Bank after it announced its plans to raise funds:

Macquarie

• Maintained ‘Underperform’ with a price target of Rs 50.
• Funding raising raises more questions than answers.
• Have big reservations regarding the quality of investors.
• Doubt whether RBI will give approval to such investors who want more than 10 percent stake.

Nomura

• Maintained ‘Neutral’ with a price target of Rs 63.
• Fund raising raises worry on quality of investors.
• Large capital raise would address the going concern worry for the bank.

Shares of Bharti Airtel rose as much as 9.8 percent to Rs 485.60, while shares of Vodafone Idea rose as much as 28.5 percent, the most in over 10 days, to Rs 8.80.

India’s three largest telecom firms on Sunday announced new and costlier prepaid plans, signalling an easing of a price war that started after Asia’s richest man entered the sector in 2016. Airtel and Vodafone Idea’s new plans will be effective Dec. 3; Reliance Jio's will roll out on Dec. 6.

The incumbents raised the minimum monthly recharge plan to Rs 45 from Rs 39 earlier, while the upstart didn’t disclose its plan details. Reliance Industries' telecom unit—Reliance Jio, however, said that its customers will get up to 300 percent more benefits under the new prepaid plans and will offer fair usage policy for outgoing calls to rival telecom networks.

Besides, Bharti Airtel plans to consider raising funds via debt and equity on Dec. 4.

Meanwhiles, Shares of Reliance Jio operator—Reliance Industries rose as much as 4 percent to hit a new all-time high at Rs 1,614.

Indian equity benchmarks opened higher, led by the gains in Reliance Industries Ltd. and Bharti Airtel Ltd.

The S&P BSE Sensex rose as much as 0.74 percent to 41,093 and the NSE Nifty 50 rose as much as 0.67 percent to 12,137. The broader markets represented by the NSE Nifty 500 Index traded little changed.

The market breadth, however, was tilted in favour of sellers. About 745 stocks declined and 710 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Auto Index’s 0.84 percent gain. On the flipside, the NSE Nifty Media Index was the only sectoral gainer, up 0.36 percent.

Futures

• Nifty December futures closed at 12,099.8, premium of 43.8 points versus 35 points.
• Nifty December futures series OI down 4 percent, sheds 5.2 lakh shares in OI.
• Nifty Bank December futures closed at 32003.8, premium of 39.7 points versus 47.2 points.
• Nifty Bank December futures series OI down 9 percent, sheds 1.6 lakh shares in OI.

Options

• Nifty PCR at 1.53 versus 1.77 (across all series).

Nifty Weekly Expiry: Dec 5

• Max OI on call side at 12,100 (21.7 lakh shares)
• Max OI on put side at 12,000 (20.5 lakh)
• OI addition seen in 12,100C (+12 lakh shares), 12,200C (+6.9 lakh shares)

Nifty Monthly Expiry: Dec 26

• Max OI on call side at 12,500 (18.1 lakh shares)
• Max OI on put side at 12,000 (28.8 lakh shares)

• Great Eastern Shipping promoter group Laadki Trading & Investments acquired 6 lakh shares from Nov. 26-29.
• Star Cement promoter Sumangal International sold 10.64 lakh shares on Nov. 28.

• Coffee Day Enterprises, SREI Infrastructure Finance to move out of ASM Framework
• Ballarpur Industries, Hubtown, Pokarna to move into short term ASM Framework
• Precision Camshafts price band revised to move into 5 percent.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.06 percent to 71.78 against the greenback.

Indian equity indices are set to open higher.

The S&P BSE Sensex rose 0.6 percent to percent to 40,972 during the pre-market trade and the NSE Nifty 50 rose 0.74 percent to 12,143.

• Ujjivan Small Finance Bank has finalised allocation of 8.21 crore shares to anchor investors at a price of Rs 37 per share. Key anchor investors are Government of Singapore, CX Partners Fund and Goldman Sachs.

• Maruti Suzuki: Total Sales down 2 percent to 1,50,630 units (Bloomberg Estimate: 1,46,598 units)
• Tata Motors: Total sales down 25 percent to 41,124 units (Bloomberg Estimate: 38,780 units)

M&M

• Auto sales down 9 percent to 41,235 units (Bloomberg Estimate: 41,764 units)
• Mahindra Tractor Sales Down 19 percent to 21,032 units (Bloomberg Estimate: 23,706 units)

Catch all the live auto sales update here.

• Yes Bank: After a 12-hour long board meet on Friday, the board of the company approved the issue of $2 billion worth of equity shares on a preferential basis to a clutch of investors.
• RBL Bank's board has approved the lender’s plan to raise about Rs 825 crore via preferential issue of shares, according to an exchange notification. The private lender plans to sell 24,238,310 shares aggregating at Rs 340.70 apiece, it said in a statement. Of the Rs 825 crore, Bajaj Finance Ltd. and East Bridge Capital Master Fund I will be investing nearly Rs 150 crore each, WF Asian Reconnaissance Fund will infuse Rs 224 crore, lshana Capital Master Fund and FEG Mauritius FPI will be investing about Rs 214 crore and 86 crore, respectively, the statement said.
• Bharti Airtel, Reliance Industries, Vodafone Idea: India’s three largest telecom firms on Sunday announced new and costlier prepaid plans, signalling an easing of a price war that started after Asia’s richest man entered the sector in 2016. Airtel and Vodafone Idea’s new plans will be effective Dec. 3; Reliance Jio's will roll out on Dec. 6. The incumbents raised the minimum monthly recharge plan to Rs 45 from Rs 39 earlier, while the upstart didn’t disclose its plan details. Reliance Industries' telecom unit—Reliance Jio, however, said that its customers will get up to 300 percent more benefits under the new prepaid plans and will offer fair usage policy for outgoing calls to rival telecom networks. Besides, Bharti Airtel plans to consider raising funds via debt and equity on Dec. 4.
• DHFL: The Reserve Bank of India has filed for insolvency proceedings to be initiated against the company. The action, it said, was initiated under powers vested with it through a recent amendment to the Insolvency and Bankruptcy Code.
• Adani Group: The Zurich Airport International AG was on Friday was selected as the concessionaire for developing the Jewar airport, billed to be the biggest airport in India upon completion, PTI reported quoting officials. The Switzerland-headquartered company made the highest per passenger bid for the airport, outbidding competitors like Delhi International Airport Ltd., Adani Enterprises Ltd., and Anchorage Infrastructure Investments Holdings Ltd., the report added.
• Infosys gets deal for digital solutions from Services Australia.
• NCC: Reliance Nippon Life Asset Management reduced stake to 4.87 percent from 5.58 percent in the company.
• Jagran Prakashan to consider share buyback on Dec. 9.
• Shoppers Stop has opened a new store in Kolkata. Company now has 86 stores under its operations.
• NTPC has listed its commercial paper in BSE for an issue size of Rs 1,500 crore.
• Kohinoor Foods has requested Oriental Bank of Commerce to keep all its actions-on hold and has already submitted the one-time settlement proposal to the bank for their consideration.
• 5paisa Capital’s arm received certificate of registration to act as a non-banking financial company for P2P business from the RBI with effect from Nov. 29.
• Reliance Power: ICRA has upgraded the company’s arm Rosa Power Supply Company’s long term rating and short term rating to ICRA B+ and ICRA A4, respectively from ICRA D citing regularisation of debt servicing in the current financial year by the company, track record of the plant operations and the adequate coal availability.
• Vedanta plans to offer up to Rs 3,000 crore in non-convertible debentures.
• Sun Pharma must face antitrust suit over Nexium, Diavan Generics, reports Bloomberg.
• Cochin Shipyard signed agreement with Andaman & Nicobar administration for operation and management of the marine dockyard in Port Blair and for development of ship repair ecosystem for the islands. Company will be entitled to a management fee of Rs 15 crore per annum.
• Bank of India said board will meet on Dec. 5 to consider raising funds via QIP.
• Dilip Buildcon wins Rs 1,250 crore road project in Uttar Pradesh.

• U.S. stocks dropped from record highs on Friday in the wake of lower European and Asian equities, rounding out a lacklustre finale to the third straight month of gains for global benchmarks.
• Oil recovered some lost ground in Asian trade on Monday after an upbeat Chinese economic report at the weekend offered grounds for optimism on the global demand outlook.

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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 12,090.50 as of 8:10 a.m.

Financial markets started December with a risk-on mood in Asia following a better-than-expected reading on Chinese manufacturing that added to evidence the global economy is turning a corner.

Japanese stocks led equity gains across the region, while S&P 500 Index futures edged up.

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