Nifty Logs Best F&O Expiry Since March 2016

Indian equity benchmarks rallied for the fourth day to end near a two-month high.

The S&P BSE Sensex Index closed 1.27 percent higher at 36,170.41 and the NSE Nifty 50 Index closed at 10,858.70, up 1.2 percent. The Nifty registered its best F&O expiry since March 2016.

The market breadth was tilted in favour of buyers. About 872 stocks advanced and 842 shares declined on National stock Exchange.

Ten out of eleven sectoral gauges compiled by NSE advanced led by the NSE Nifty Financial Services Index's 1.93 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 0.78 percent.

DB Corp

• Stock fluctuated between gains and losses to trade at Rs 177.30
• trading volume aws almost 60 times its 20-day average.

Mahindra Logistics

• Stock rose as much as 4.9 percent to Rs 546.
• Trading volume was more than 30 times its 20-day average.

Future Retail

• Stock fell as much as 5.9 percent to Rs 494.65
• Trading volume was more than 11 times its 20-day average.

JK Cement

• Stock rose as much as 1.7 percent to Rs 712.80.
• Trading volume was almost 40 times its 20-day average.

Shares of Neuland Laboratories rose as much as 13.9 opercent, the most in over nine months to Rs 558.95.

The U.S drug regulator completed the inspection of its manufacturing facilities in Telangana and received no observations under Form 483, according to its stock exchange notification.

Trading volume was 13 times its 20-day average, Bloomberg data showed.

JSW Steel Ltd.'s board approved the merger of four entities—JSW Steel board approves merger of Dolvi Minerals & Metals, Dolvi Coke Projects, JSW Steel Processing Centres and JSW Steel (Salav) with itself, according to its stock exchange filing.

The stock rose as much as 2.9 percent to Rs 317.65 after the announcement.

Shares of Alkem labs fell as much as 5.2 percent to Rs 1,820, its lowest since July 20.

About 13 lakh shares or 1.1 percent equity changed hands in a block deal, according to Bloomberg. Buyers and sellers were not known immediately.

West Texas Intermediate (WTI) fell below $50 per barrel mark for the first time since October 2016.

European equities advanced following a sharp rally on Wall Street sparked by dovish comments from Federal Reserve Chairman Jerome Powell.

• Indian equity benchmarks extended gains to trade at day's high.
• The S&P BSE Sensex Index rose as much as 1.18 percent to 36,139.92 and the NSE Nifty 50 Index rose as much as 1.1 percent to 10,847.35. Both the benchmarks indices were trading at their highest levels since Oct. 03.
• 41 out of 50 stocks in the Nifty advanced.

Shares of Yes Bank rebounded and rose over 1 percent to Rs 164.35.

Shares of Jubilant Life Sciences rose as much as 7.2 percent, the most in over two months, to Rs 746.85.

The company's Singapore unit plans to acquire 5.3 lakh shares on U.S.-based Inipharm Inc., according to its stock exchange filing.

Trading volume was more than five times its 20-day average, Bloomberg data showed. The stock traded at 13 times its estimated earnings per share for the coming year.

The official back-data for the GDP series is far more inclusive and far more reflective of the situation on the ground, and therefore has far greater credibility, Union Finance Minister Arun jaitley said.

Watch the full interaction here:

Shares of Adani Enterprises rose as much as 6.5 percent, the most since Oct. 15, to Rs 168.35.

The stock has gained 82 percent in the past 12 months compared to a 7.4 percent advance in Sensex.

The Indian rupee is set for its best month so far in seven years. The home currency appreciated nearly 5.4 percent so far this month against the U.S. dollar—the most since January 2012. The local legal tender, however, is still the worst performing Asian currency in 2018.

Yes Bank Ltd.’s valuation (12-month forward price-to-book ratio) was at the lowest in nearly a decade.

The stock was trading at a 33-month low.

Shares of Deep Industries rose as much as 4.9 percent to Rs 146.

The company received an order worth Rs 3.12 crore from ONGC, according to its stock exchange notification.

Trading volume was more than double, its 20-day average.

International brokerage and research firm Jefferies initiated ‘Buy’ rating on two tyremakers — Apollo Tyres and CEAT.

Here's about the research company had to say about them:

• Positives: lower raw material prices, improved mix and replacement demand.
• Expect price hikes in Nov-18 of 3-5 percent in Q3.
• Expect uptick in realisation led by technology and increase in share of replacement demand.
• Prefer Apollo Tyres given better growth visibility, lower leverage and inexpensive valuations.
• Apollo Tyres: Initiated ‘Buy’ with a price target of Rs 290.
• CEAT: ‘Initiated’ Buy with price target of Rs 1,520.

• Indian equity benchmarks extended gains for the fourth day and traded at day's high.
• The S&P BSE Sensex Index rose as much as 1.14 precent to 36,122.99 and the NSE Nifty 50 Index rose as much as 1 percent to 10,836.15.
• About 938 stocks advance and 674 shares decline on National Stock Exchange.

Shares of technology firms decline after the Indian rupee strengthens past 70 a dollar.

Shares of oil marketing companies rallied in today's trade after Brent crude fell over 2% to $58.76 a barrel yesterday.

About 16.2 lakh shares of Yes Bank changed hands in a block deal on BSE, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Sical Logistics rose as much as 8.1 percent to Rs 163.20.

The company was awarded contracts worth Rs 363.38 crore by Mahanadi Coalfields for extraction of coal and allied transport services in Odisha. A total of 16.2 million cubic meters of coal will be extracted over a period of three years by the company.

Trading volume was 83.4 times its 30-day average, Bloomberg data showed. The stock declined 30 percent in the past 12 months.

Shares of Vedanta snapped a six-day decline and rose as much as 3.3 percent to Rs 199.40.

A court panel said that the grounds for the closure of Vedanta's copper smelter by Tamil Nadu government is not grievous enough to justify the permanent closure of the factory, Bloomberg reported.

The stock has declined 36 percent in the past 12 months compared to a 6.2 percent advance in the Sensex.

• Future Retail: About 57 lakh shares changed hands in a block deal.
• Mahindra Logistics: About 15.4 lakh shares changed hands in a block deal on NSE.

Buyers and sellers were not known immediately.

Source: Bloomberg

Indian equity benchmarks extended gains for the fourth day. The S&P BSE Sensex Index rose as much as 1.02 percent to 36,081 and the NSE Nifty 50 Index rose as much as 0.75 percent to 10,809.15.

The market was tilted in favour of buyers. Ten out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Metal Index’s 1.15 percent gain. On the flipside, NSE Nifty IT Index was the only sectoral loser, down 0.21 percent.

The Indian rupee strengthened for the third day against the dollar. The home currency appreciated as much as 0.74 percent to 70.09 against the greenback.

Better risk appetite as an equity rally spread from the U.S. into Asia after a dovish tone from the Federal Reserve Chairman Jerome Powell fueled speculation the central bank may pause lifting interest rates next year, are likely to help the rupee. Subdued oil prices are also likely to boost sentiment towards the rupee, traders said.

Meanwhile, bonds are expected to maintain gains as traders await 100 billion rupees of debt purchase by RBI via OMO on Thursday as part of its November plan.

The central bank will also buy up to Rs 40,000 crore of bonds through its open-market operations next month and which Scotiabank described as being supportive of local assets. The yield on the 10-year government paper fell nine basis points to 7.64 percent on Wednesday, its lowest since May 9 as hopes of slower inflation due to oil prices and expectations that the central bank will pause in its rate tightening cycle bolstered buying.

F&O Cues

• Nifty November futures closed trading at 10,718, discount 11 points.
• Nifty November open interest down 28 percent; Nifty Bank November open interest up 9 percent.
• Max open interest for November series at 10,800 call (open interest at 28.6 lakh shares)
• Max open interest for November series at 10,800 call (open interest at 28.6 lakh shares).

Stocks In F&O Ban

• In ban: Adan Enterprises, Adani Power, DHFL
• Out of ban: Jet Airways

Put-Call Ratio

• Nifty PCR at 1.81 from 1.74.
• Nifty Bank PCR at 1.26 from 1.37.

Get a detailed drawdown of derivatives on BloombergQuint's F&O page.

Macquarie on Hindustan Unilever

• Maintained ‘Outperform’ with a price target of Rs 1,870.
• Food and Refreshments segment can get a big boost if acquired GSK Consumer.
• HUL can bring strong distribution and cost synergy to the table.
• HUL remains top pick in India and a high conviction idea.

Macquarie on Tata Steel

• Maintained ‘Outperform’ with a price target of Rs 730.
• Aims to grow only in India market with a target of 30 MT by 2025.
• Focus on B2C to enrich product mix, increase cost efficiency and drive margin expansion.
• Not keen on a price war for Bhushan Power; high focus on deleveraging.

Nomura on Axis Bank

• Maintained ‘Buy’ with a price target of Rs 750.
• Asset quality – Nearing the end of the credit cycle.
• ROE improvement and pre-provisioning operating profit could surprise.
• Expect new CEO to focus on costs and systems/processes and bring in more accountability.

Morgan Stanley on Indian Metals

• Domestic steel profitability and valuations at peak
• Domestic steel demand risk and high leverage add to near-term concerns
• JSW Steel: Downgraded to ‘Underweight’ from ‘Equalweight’; cut price target to Rs 278 from Rs 369
• Steel stocks looks vulnerable given the sharp correction in steel prices in China.
• Steel imports have become viable.
• Landed cost of HRC Imports from China is Rs 42,000 per tonne versus Domestic price of Rs 46,000 per tonne.
• Anti-dumping duty price threshold is Rs 35,000 per tonne.
• Analyst expect prices to correct by Rs 3000-4000 per tonne over next two months
• Tata Steel confirmed that the correction seen in China steel prices have put domestic prices under pressure.

Jefferies on Tyre Companies

• Positives: lower raw material prices, improved mix and replacement demand.
• Expect price hikes in Nov-18 of 3-5 percent in Q3.
• Expect uptick in realisation led by technology and increase in share of replacement demand.
• Prefer Apollo Tyres given better growth visibility, lower leverage and inexpensive valuations.
• Apollo Tyres: Initiated ‘Buy’ with a price target of Rs 290.
• CEAT: ‘Initiated’ Buy with price target of Rs 1,520.

• NHPC ex-date for share buyback.
• Britannia Industries ex-date for stock split from Rs 2 to Rs 1.
• Dalmia Bharat ex-date for amalgamation of two entities with self.
• Shankara Building Products price band revised to 10 percent.

• Shankara Building Product: Amansa Holdings acquired 2.9 lakh shares or 1.28 percent equity at Rs 676.24 each.

Fortis Healthcare

• UBS Principal Capital Asia acquired 1.52 crore shares or 2.01 percent equity at Rs 146 each.
• York Asian Strategic sold 1.27 crore shares or 1.68 percent equity at Rs 146 each.

• A jury in California rejected claims that Tata Consultancy Services has discriminated for years against American workers in favour of staffing its U.S. offices with Indians, according to a Bloomberg report. Besides, the company acquired U.S. based-Consulting Firm BridgePoint Group which caters to the financial services industry and retirement services.
• Unilever edged out Nestle SA in contest for GlaxoSmithkline PLC’s $4 billion Indian consumer-health unit. Unilever has offered to roughly pay $3 billion for about 70 percent of the division. GSK owns the popular milk drink brand Horlicks. Sources say both sides are working towards reaching an agreement in coming weeks, though talks may yet fall apart.  (Bloomberg News)
• Jet Airways said report on company’s Chairman Naresh Goyal’s exit is speculative in nature.
• Cosmo Films decided to postpone the delivery and commissioning for a new production line for BOPET Film in Maharashtra by 8-10 quarters. The company says the line has already been ordered but the delay is happening due to adverse market conditions and no impact will be there on current operations of the company.
• SpiceJet clarified on report on non-payment of dues to Airports Authority of India, stating that the article has sensationalised a routine operational matter and it is making payments as per stipulated timelines. The company also says in its press release that it remains committed to all of its contractual obligations.
• Mahanagar Gas board approved appointment of GAIL’s Chairman and Managing Director, Bhuwan Chandra Tripathi as the Chairman and Additional Director of the company with effect from Nov. 29.
• Sical Logistics awarded contracts worth Rs 363.38 crore by Mahanadi Coalfields for extraction of coal and allied transport services in Odisha. A total of 16.2 million cubic meters of coal will be extracted over a period of 3 years by the company.
• Indoco Remedies commissioned new API manufacturing facility in Maharashtra. This new facility will enhance existing manufacturing capacity from 150 tons per annum to 600 tons per annum.
• Allahabad Bank increased MCLR by 10 basis points across various tenors. Overnight MCLR at 8.15 percent and one year MCLR at 8.65 percent.

Media Reports

• Tata Communication unlikely to acquire Tata Teleservices’ enterprise business (Economic Times)

Offering

• Reliance MF-managed CPSE ETF FFO3 received Rs 3,000 crore on first day sale, Offer close on Nov. 30.

• Official GDP back series throws up yet another set of growth trends.
• BOE warns disorderly Brexit could unleash a savage recession.
• Petrol dips below Rs 74 mark in New Delhi, diesel wipes off price rise.
• Festive spirit does little to revive animal spirits in India.
• Powell opens door to possible pullback in Fed rate-hike outlook.
• Should the web of Rana Kapoor’s family businesses raise eyebrows?
• Unilever edges out Nestle for Glaxo’s India consumer unit.
• Global economy may be slowing more than expected, Lagarde Says.
• Leela suitor plans overseas expansion for Indian chain.
• Imran Khan says Pakistan Army wants to mend ties with India.
• Farmers from across the country set to protest in Delhi on Nov. 29.
• U.S. economy grew at unrevised 3.5% in third quarter.

• West Texas Intermediate crude gained 0.8 percent to $50.71 a barrel.
• Brent crude ended 2.41 percent lower to $58.76 per barrel, its lowest levels in over 13 months.
• Gold was steady at $1,221.42 an ounce.

London Metal Exchange

• Aluminium resumed rally after a one-day blip, up 0.1 percent.
• Copper halted a three-day decline, up 1.3 percent.
• Zinc halted a three-day decline, up 0.7 percent.
• Nickel halted a seven-day decline, up 0.23 percent.
• Lead halted a four-day decline, up 0.84 percent.
• Tin ended lower for the second day, down 0.19 percent.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.9 percent to 10,811 as of 8:45 a.m.

An equity rally spread from the U.S. into Asia after a dovish tone from the Federal Reserve Chairman Jerome Powell fueled speculation the central bank may pause lifting interest rates next year.

Stocks from Sydney to Hong Kong rose, though gains were more muted than the stellar rally in the S&P 500 Index, which surged the most since March. Emerging-market equities climbed to the highest level since early October and earlier the Nasdaq 100 jumped 3.2 percent.