Sensex, Nifty Halt Their Longest Winning Streak In Over A Month

Indian equity benchmarks halted a three-day rally, their longest winning streak in over a month.

The S&P BSE Sensex Index ended 0.84 percent at 35,474.51 and the NSE Nifty 50 Index ended at 10,656.20, down 1 percent. The fall in the 50-stock index was the most in over a month.

The market breath was tilted in favour of sellers. Ten out of 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty Metal Index's 2.8 percent decline. On the flipside, NSE Nifty Realty Index was the only sectoral gainer, up 0.04 percent.

Shares of HEG rose as much as 5.4 percent to trade near a three-week high at Rs 4,480.

The company’s board said that it considering a share buyback on Nov. 26.

The stock rose 91.8 percent so far this year compared to a 5.4 percent advance in the Sensex.

Shares of oil marketing companies fell in today's trade amid fall in crude oil prices.

Shares of the chemical products maker rose as much as 2.9 percent to hit a new all-time high at Rs 1,495.

The Relative Strength Index (RSI) was above 70, indicating that the stock may be overbought.

About 15 lakh shares of ICICI Securities changed hands in a single block deal, according to Bloomberg. Buyers and sellers were not known immediately.

Bharti Airtel Ltd. is raising more than $2 billion in loans from banks, According to a Bloomberg report.

The company has agreed to two- and three-year bilateral loans with 10 to 12 lenders, Bloomberg reported quoting two people familiar with the matter.

European equities fell at the open, extending Monday’s decline and tracking losses in U.S. and Asia markets.

Zydus Cadila received U.S. FDA approval for Deferasirox Tablets, The company said in a stock exchange notification.

The drug is used to treat ongoing high levels ofiron in the body caused by multiple blood transfusions, the drugmaker said.

Fair trade regulator CCI has sought public views on Schneider Electric's proposed acquisition of certain businesses of Larsen & Toubro Ltd. after prima-facie finding that the deal could adversely impact competition, PTI reported.

In a public notice, the Competition Commission of India (CCI) said stakeholders have to submit their comments within 15 working days along with supporting documents on how the merger can adversely impact any person or entity, the news agency said.

About one crore shares of Fortis Healthcare changed hands in a single block deal on National Stock Exchange, Bloomberg data showed. Buyers and sellers were not known immediately.

• Indian equity benchmarks traded at near day’s low.
• The S&P BSE Sensex index fell as much as 0.45 percent to 35,612 and the NSE Nifty 50 Index fell as much as 0.58 percent to 10,700.90.
• About 1,020 stocks declined and 634 stocks advanced on NSE.

Shapoorji Pallonji Group is looking to raise $1 billion selling stake in its solar unit, Bloomberg reported quoting the company’s Executive Director Jai Mavani. The company also plans for a separate listing for Forbes’ water purification arm - Eureka Forbes.

The NSE Nifty IT Index snapped a three-day rally after the Indian rupee strengthened to trade at over a two-month high.

The home currency fell for the sixth day against the U.S. dollar and set for its longest winning streak in 13 months. It appreciated as much as 0.52 percent to trade at over a two-month high at 71.28 against the greenback.

Maruti Suzuki India Ltd. announced that it is increasing the production of Vitara Brezza, the company said in its stock exchange notification.

The country’s largest carmaker sold 95,000 units of Vitara Brezza so far this financial year. It sold 1.48 lakh units of the model during the previous financial year, the statement said.

Shares of Maruti Suzuki Fluctuated between gains and losses to trade at 7,411.60 apiece.

Key highlights from the conversation:

• Festive demand had not been great versus our expectations.
• Dealers expected demand to pick up and were sitting on the big inventories.
• Two-wheeler dealers inventory stands at 50 days post festive season.
• Two-wheeler sales have been worst hit this festive season.
• Average inventory is higher even for companies like Maruti and Hyundai.
• OEMs will have to streamline inventory and production levels.
• Dealers can give discounts to get rid of inventories moving ahead.
• Festive season sales down 20 percent year on year.
• Higher insurance and fuel costs have impacted two-wheeler sales.

Nifty’s 10,800 call option contract was among the most active option contracts on National Stock Exchange.

Premium on the contract fell 25.6 percent to Rs 62.20. Over 4.16 lakh shares were added to the open interest which stood at over 38.21 lakh shares.

Petronet LNG received a new ‘Outperform’ rating on the stock from international brokerage firm Macquarie.

Shares of the company is expected to reach Rs 270, the research company said in a report. The price target implies a potential upside of 25.1 percent from Monday's closing price. Macquarie finds Petronet LNG's valuations attractive compared to its Asia-Pacific peers.

Shares of Petronet LNG rose as much as 1.5 percent to Rs 219.

Shares of Oil India rose as much as 1.8 percent to Rs 204.35.

The company’s board approved raising foreign currency debt securities worth Rs 4,000 crore. Board also approved buyback of 4.45 percent of total paid-up share capital, at Rs 215 per share aggregating to Rs 1,086 crore, according to its stock exchange filing. The Record date is set for Dec. 03.

The stock traded at 6.5 times estimated forward earnings per share compared to 8.7 times for the two-year historical average.

Shares of Bajaj Finance its expected to reach Rs 3,000 levels, according to an international brokerage and research firm HSBC.

The research house initiated coverage on the stock with a buy rating and the price target implies a potential 27.1 percent from the last regular trade. This is the is the highest price target so far among the analysts tracked by Bloomberg.

Shares of Bajaj Finance fluctuated between gains and losses to trade at 2,359 apiece.

Shares of Yes Bank fell as much as 6.4 percent to Rs 191.60.

The lender’s independent (non-executive) director Rentala Chandrashekhar resigned from the bank’s board with immediate effect, according to its stock exchange notification. (more details here).

The stock was the worst performer on Sensex and Nifty. The scrip declined 33 percent in the past 12 months.

Indian equity benchmarks snapped its three-day rally. The S&P BSE Sensex Index fell as much as 0.37 percent to 35,643.19 and the NSE Nifty 50 Index fell as much as 0.44 percent to 10,716.25.

The market breadth was tilted in favour of sellers. All the sectoral gauges compiled by NSE fell, led by the NSE Nifty PSU Bank Index's 1.39 percent decline.

The Indian rupee strengthened for the sixth day in a row against the U.S. dollar.

The home currency opened at 71.44 against the greenback from the yesterday’s close of 71.65, appreciating 0.25 percent. It further appreciated as much as 0.41 percent to trade at 71.36 a dollar.

After a marathon meeting that ran for over nine hours, the central bank and the government appear to be on the same page and this may help the money markets.

The rupee could extend its five-day rally after the two agreed to conduct a study on the government's demand for sharing reserves - a major bone of contention between the two.

In the bond market, the benchmark bond yield fell three basis points to 7.79 percent in the last session. Another open market operation to buyback bonds on Nov. 22 may help sentiment and traders expect a range of 7.75-7.80 percent on the 10-year note.

F&O Cues

• Nifty November futures closed trading at 10,775, a premium of 13 points.
• Nifty November open interest up 2.2 percent; Nifty Bank November open interest up 2 percent.
• Max open interest for November series at 11,000 strike value call option, (open interest at 34 lakh shares)
• Max open interest for November series at 10,000 strike value put option (open interest at 47 lakh shares)

Stocks In F&O Ban

• Stock in ban: Adani Power, Adani Enterprises, Jet Airways, PC Jeweller
• New in Ban: Jet Airways, PC Jeweller

Put-Call Ratio

• Nifty PCR at 1.73 from 1.64.
• Nifty Bank PCR at 1.33 from 1.26.

• Talwalkars Better Value Fitness: Birla MF sold 3.9 lakh shares or 1.26 percent equity at Rs 45.22 each.

UBS On UltraTech

• Upgraded to ‘Buy’ from ‘Neutral’, raised price target to Rs 4,700 from Rs 4,550, implying a potential upside of 16.6 percent from Monday’s closing price.
• Upgrade due to strong earnings growth and favourable valuations.
• Improving product mix to partially offset cost pressures and sustain margins.
• Continues to gain market share via a combination of organic and inorganic expansion.

Macquarie On Petronet LNG

• Initiated ‘Outperform’ with a price target of Rs 270, implying a potential upside of 25.1 percent from Monday’s closing price.
• Expect Petronet to generate around $5 billion cumulative free cash flow by March 2025.
• Expect net cash position to balloon to 60 percent of current market capitalisation by March 2025.
• Valuations attractive versus Asia-Pacific peers.

Credit Suisse On Colgate

• Maintained ‘Outperform’ with a price target of Rs 1,375, implying a potential upside of 19.5 percent from the last regular trade.
• Started turning the corner after three years of market share loss, poor volume growth.
• Colgate's ‘Naturals’ offerings are now starting to gain traction.
• Pick up in Colgate's premium portfolio is key for long-term growth.
• Valuations and earnings expectations make risk reward favourable.

Goldman Sachs on GAIL

• Upgraded to ‘Buy’ from ‘Neutral’, raised price target to Rs 490 from Rs 260, implying a potential upside of 46.4 percent.
• Expect GAIL to have the highest earnings growth amid the gas coverage universe.
• Pricing in core transmission business valuations at 4.5 times 2019E EV/Ebitda.
• GAIL will benefit the most from over $40 billion investment by multiple players.
• Domestic production, LNG capacity and consuming infrastructure, are synchronising.

HSBC on Bajaj Finance

• Initiated ‘Buy’, with a price target of Rs 3,000, implying a potential upside of 27.1 percent from the last regular trade.
• Riding high on data analytics to create a differentiated business model.
• Robust growth and best-in-class return ratios look sustainable.
• Expect compounded annual growth rate of 37 percent in net profit and average 23 percent ROE in FY18-21.
• Premium valuations likely sustainable for one of the most profitable BFSI franchises.

• NMDC clarified that Donimalai mine’s lease had already been extended by the Karnataka state government for a period of 20 years with effect from Nov. 4. The company stated that they had made the representation to the state Chief Minister on legal and other issues and the meeting ended on a positive note. As per the information received by the company, the Karnataka Cabinet had not taken any decision to cancel the lease. Pending the decision by the Karnataka government, production has been suspended temporarily.
• Oil India board approved raising foreign currency debt securities worth Rs 4,000 crore. Board also approved buyback of 4.45 percent of total paid-up share capital, at Rs 215 per share aggregating to Rs 1,086 crore. Record date is set for Dec. 03.
• PSP Projects bagged new institutional and industrial projects worth Rs 372.47 crore. The total work orders received till date for this financial year on a standalone basis stood at Rs 804.62 crore.
• Kridhan Infra’s Singapore arm won a construction order worth Rs 195 crore for link sewers from Singapore’s Public Utilities Board.
• SRF pegged the cost of the damage to its technical textiles unit in Tamil Nadu, affected by Cyclone Gaja, at Rs 28 crore. The company said damage was covered by adequate insurance.
• Usha Martin clarified that it was not aware of the news that former Chairman Basant-Prashant Jhawar may sell majority stake as part of the company’s deal with Tata Steel.
• HEG board said it considering a share buyback on Nov. 26.
• South Indian Bank revised its MCLR across various tenors with effect from Nov. 20. Overnight MCLR has been set at 8.55 percent and one-year MCLR at 9.45 percent.
• Jet Airways plans to deploy planes on more profitable and productive routes. The aviation company is in active talks with investors to secure financing. (Bloomberg News)
• Yes Bank’s independent (non-executive) director Rentala Chandrashekhar resigned from the bank’s board with immediate effect, citing personal reasons.
• Religare Enterprises to announce its September quarter results today.

• West Texas Intermediate crude climbed 0.2 percent to $57.32 a barrel.
• Brent crude rose for the fourth day, and is set for its longest winning streak in over a month.
• Gold was little changed at $1,223.60.