Nifty Clocks Longest Winning Streak In Over Seven Months

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.6 percent to 10,978 as of 8:05 a.m.

Risk appetite returned to markets on Monday, as U.S. equity futures climbed alongside Asian stocks, the Australian dollar and the Chinese yuan, after a truce between Washington and Beijing emerged from the Group-of-20 summit.

S&P 500 Index futures jumped over 1.5 percent, while the Aussie and the currencies of South Africa, Turkey and Mexico all rose. Shares from Sydney to Seoul gained.

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

• West Texas Intermediate crude climbed 2.7 percent to $52.28 a barrel.
• Brent crude jumped 4.12 percent higher on Friday, the most in over two years, to $61.30 per barrel.

Also Read: Oil Jumps After Saudi Arabia and Russia Agree to Extend Pact

London Metal Exchange

• Aluminium ended higher for the third day, up 0.9 percent.
• Copper ended a two-day rally, down 0.23 percent.
• Zinc ended higher for the third day, up 2.9 percent.
• Nickel ended higher for the third day, up 1.3 percent.
• Lead ended higher for the third day, up 2.1 percent.
• Tin ended 0.67 percent lower.

Also Read: A Climate Summit in the Heart of Coal Country

• GDP growth drops to 7.1 percent in the second quarter.
• Fiscal deficit reaches 103.9 percent of full year target in October.
• Trump, Xi agree to temporary truce in bid to contain trade war.
• FPI inflow hit 10-month high of Rs 12,260 crore in November.
• Gold is poised to jump in 2019.
• India will buy supersonic missiles in Rs 3,000 crore arms spending.
• Trade truce offers dose of cheer for emerging-market investors.
• GST annual return and audit: Complexities galore.
• Asian central banks are in for a quieter year in 2019.

• Biocon’s jointly developed product “Fulphila” with Mylan has been granted marketing authorisation from the European Commission.
• Monte Carlo Fashion’s board approved buy back of 4.6 percent of equity paid-up share capital at Rs 550 per share, aggregating to Rs 55 crore.
• Indian Oil Corporation to reduce Delhi’s non-subsidized LPG price by Rs 133 per bottle from Dec. 01, according to a Bloomberg report.
• SAIL’s Durgapur alloy plant is showing improved performance and the unit is geared up to make profit next year said Steel Minister, Birender Singh. He also added that Durgapur Steel plant is in the process of scaling up crude output from 1.8 million tons now to 2.2 million tons next year and losses at Salem Mill have been reduced this year and may drop by around 20 percent, Bloomberg reported.
• TV Today Network’s Chief Executive Officer Vivek Khanna resigned from his post.
• Aviation stocks in focus as ATF prices for October cut by 11 percent pan India due to lower crude prices and stronger rupee.
• The Uttar Pradesh government state advised prices (SAP) for sugarcane at Rs 315 a quintal.
• Sandhar Technologies signed JV pact with South Korea's Kwangsung to make plastic-mould parts for cars, trucks.

Also Read: Jet Airways To Stop Flying On Seven Gulf Routes

Media Reports

• SEBI to reopen insider trading case against Sun Pharma (PTI).
• NMDC cuts iron order prices by upto 8 percent in December (Mint).
• Sale process of NIIT Tech gathered momentum; Many global local players like Tech Mahindrahave been approached (Economic Times).
• Tata Sons rejected acquisition proposal of Prabhat Dairy for Rs 400 crore by Tata Global Beverages (Economic Times).

• Reliance Mutual Fund managed CPSE ETF FPO raises Rs 27,300 crore against the government’s proposal to raise Rs 8,000 crore from the offering.
• The government will accept Rs 17,000 crore of bids following the over-subscription.

Data To Watch

• Automobile manufacturers will continue reporting their monthly sales data for November.
• 10:30 a.m. Nikkei India Manufacturing PMI for November, prior 53.1.

Data Reaction To Watch

• GDP growth drops to 7.1 percent in the second quarter.
• Fiscal deficit reaches 103.9 percent of full year target in October.

November Auto Sales (YoY)

• Maruti Suzuki down 0.7 percent at 1.53 lakh units.
• M&M up 17 percent 45,101 units.
• Escorts up 56 percent at 8,005 units.
• Tata Motors down 4 percent at 50,470 units.
• Hero MotoCorp up 0.8 percent to 6.1 lakh units.

Catch all the live updates of November auto sales here.

• Bharat Heavy Electricals: Integrated Core Strategies (Asia) acquired 3.01 crore shares 0.82 percent equity at Rs 68.57 each.
• CARE Ratings: Copthall Mauritius Investment acquired 1.52 lakh shares or 0.52 percent equity at Rs 957.2 each.
• Divi’s Laboratories: Integrated Core Strategies (Asia) sold 18.86 lakh shares or 0.71 percent equity at Rs 1,438.98 each.
• Repco Home Finance: Pabrai Investment Fund sold 6.84 lakh shares or 1.09 percent equity at Rs 338.17 each.

ICICI Lombard General Insurance

• Red Bloom Investment sold 1.3 crore shares or 2.92 percent equity at Rs 800 each.
• RWC Global Emerging Equity Fund acquired 21.9 lakh shares or 0.48 percent equity at Rs 800 each.
• Fidelity Funds Asia Pacific Dividend Fund acquired 19.2 lakh shares or 0.42 percent equity at Rs 800 each.
• DSP Blackrock MF acquired 15 lakh shares or 0.33 percent equity at Rs 800 each.

Ramkrishna Forgings

• Abakkus Growth Fund acquired 5 lakh shares or 1.53 percent equity at Rs 515 each.
• Old Bridge Capital Management acquired 8 lakh shares or 2.46 percent equity at Rs 515 each.
• Vantage Equity Fund acquired 2.8 lakh shares or 0.86 percent at Rs 516.67 each.
• Amansa Holdings sold 19 lakh shares or 5.24 percent equity at Rs 515.24 each.

• Oil India record date for share buyback.
• Rain Industries price band revised to 5 percent.

CLSA on Motherson Sumi

• Maintained ‘Outperform’; cut price target to Rs 180 from Rs 223.
• Indian business in soft patch, but remain positive on outlook.
• Weak European auto demand hurting, but new plant ramp-up to offer a cushion.
• Cut FY19-21 EPS estimates by 7-14 percent; see further downside to consensus estimates.

UBS on Sun Pharma

• Maintained ‘Buy’ with a price target of Rs 690.
• Whistle-blower allegations are valuation dampener at the minimum.
• Negatively impacts Mgmt.’s bandwidth at a time when key brands are getting launched.
• Expect stock to react negatively to the whistle-blower allegations.

Nomura on Glenmark Pharma

• Maintained ‘Buy’; hiked price target to Rs 850 from Rs 825.
• Remain constructive due to strong domestic growth and progress in clinical development .
• Hike 2018-19 EPS estimates by 22 percent to factor in forex and inlicensing income in the first half.
• Catalysts: out-licensing deals, key ANDA approvals and strong India growth.

Nomura on Indian Tyre

• Believe industry fundamentals are in better shape now with healthy demand and high utilisation.
• Play on healthy growth outlook, pricing discipline, benign commodity prices to support margins.
• Despite capacity expansion, a strong demand scenario to keep utilisation healthy.
• Apollo Tyres: Initiated ‘Buy’ with a price target of Rs 288.
• Ceat: Initiated ‘Neutral’ with a price target of Rs 1,346.
• Balkrishna Industries: Initiated ‘Neutral’ with a price target of Rs 1,008.

F&O Cues

• Nifty December Futures closed trading at 10900, premium of 23 points.
• Max OI for December series at 11,000 Call, OI at 25.4 lakh shares.
• Max OI for December series at 10,000 Put, OI at 37.8 lakh shares.

Put-Call Ratio

• Nifty PCR at 1.7 from 1.75
• Nifty Bank PCR at 1.17 from 1.33

The Indian rupee snapped its four-day gaining streak against the U.S. dollar. The home currency depreciated as much as 0.49 percent to 69.92 against the greenback.

Indian equity benchmarks extended gains for the sixth day and are set for their longest winning streak in over four months.

The S&P BSE Sensex Index rose as much as 0.7 percent to 36,446.16 and the NSE Nifty 50 Index rose as much as 0.59 percent to 10,941.20.

The market breadth was tilted in favour of buyers. Nine out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Metal Index's 3 percent gain. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 1.9 percent.

Shares of the country's largest pharmaceutical company fell as much as 10.3 percent, the most since May 2017, to Rs 442.

The Securities and Exchange Board of India is likely to reopen an insider trading case against Sun Pharmaceutical Industries Ltd. as well as probe alleged lapses by some of its promoters and other entities in raising funds overseas, PTI reported quoting sources.

The stock was the worst performer on Sensex and Nifty. Trading volume was 14 times its 20-day average, Bloomberg data showed.

Bajaj Auto sales rose for the fifteenth straight month in November. The Pune-based automaker sold 4.06 lakh units last month, an increase of 25 percent from November 2017, according to its stock exchange notification.

Key sales highlights (YoY)

• Domestic motorcycle sales rose 45 percent to 2.05 lakh units.
• Total motorcycle sales rose 31 percent to 3.46 lakh units.
• Total commercial vehicle sales fell 3 percent to 60,386 units.
• Total exports rose 17 percent to 1.72 lakh units.

Shares of Bajaj Auto fluctuated between gains and losses after the announcement.

Eicher Motors

• Stock fell as much as 1.9 percent to 22,950.05.
• Royal Enfield sales down 6 percent year-on-year to 65,744 units .

Escorts

• Stock rose as much as 2.7 percent to 723.90.
• Total sales up 56.4 percent year-on-year at 8,005 units.

Hero MotoCorp

• Stock fell as much as 1.1 percent to Rs 3,020.
• Total sales up 0.8 percent year-on-year at 6.1 lakh units.

Tata Motors

• Stock rose as much as 2.1 percent to Rs 175.55.
• Total sales down 4 percent year-on-year at 50,470 units.

Maruti Suzuki

• Stock 0.8 percent to Rs 7,725.
• Total sales down 0.7 percent year-on-year at 1.53 lakh units.

M&M

• Stock rose as much as 1.5 percent to Rs 803.
• Automotive sales up 17 percent year-on-year at 45,101 units.

SML Isuzu

• Stock fell as much as 1.4 percent to Rs 710.
• Total sales up 1 percent at 688 units.

Shares of Apollo Hospitals Enterprise rose as much as 3.4 percent to Rs 1,316.15, its highest levels since June 2017.

The stock has gained over 6 percent in four trading sessions. Apollo Hospitals traded at 52 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of Sandhar Technologies rose as much as 5.3 percent to Rs 327.55.

The company signed JV pact with South Korea's Kwangsung to make plastic-mould parts for cars and trucks.

Trading volume was more than triple its 20-day average, Bloomberg data showed. The stock has declined 6.3 percent in the past 12 months.

Shares of Ashok Leyland fell as much as 4.5 percent to Rs 107,25.

The commercial vehicles maker sold 13,121 units in November a decline of 9 percent from the year-ago month, according to its stock exchange notification.

The stock has declined 8 percent so far this year compared to a 0.5 percent advance in the Sensex.

Shares of Shankara Building Products fell as much as 9.9 percent to Rs 625.30.

The company said that it expects its margins to come under pressure in a conference call on Nov. 30. (more details here).

Trading volume was 13.5 times its 30-day average, Bloomberg data showed. The Relative Strength Index was at 17, indicating that the stock may be oversold.

• Indian equity benchmarks traded off day's high.
• The S&P BSE Sensex Index rose 0.48 percent to 36,368.39 and the NSE Nifty 50 Index rose 0.39 percent to 10,918.55.
• About 1,010 stocks advanced and 611 shares declined on NSE.

India’s manufacturing activity strengthened in November, posting its highest levels since December 2017.

The Nikkei India Purchasing Managers Index rose to 54 in November, from 53.1 in the previous month, according to a statement by IHS Markit that compiles the index. A reading below 50 indicates contraction in activity, while a number above it signals expansion.

Nifty's 11,000 strike price call option contract was among the most active option contracts on the National Stock Exchange.

Premium on the contract rose 8.2 percent to Rs 152.50. Over 2.45 lakh shares were added to the open interest which stood at over 27.89 lakh shares.

Shares of the country's largest utility vehicle maker fell 1.3 percent to Rs 780 after it announced tractor sales for the month of November.

• Total tractor sales stood at 25,949 units versus 22,994 units (YoY)

Shares of the Anil Ambani-led company rose as much as 15 percent to Rs 16.40 after its subsidiary Reliance Realty furnished a Rs 1,400 crore corporate guarantee to the telecom department in line with a Supreme Court directive, Reliance Communication said in an exchange notification.

The spectrum trading transaction will now be completed and proceeds will clear the dues of Ericsson and minority investors of Reliance Infratel (RITL), the filing added.

Shares of the Chennai-based two- and three-wheeler maker struggled after its reported sales numbers for November.

• Two-wheeler sales up 26 percent at 3,07,142 units versus 2,43,323 units (YoY)
• Three-wheeler sales up 48 percent at 12,823 units versus 8,642 units (YoY)
• Total sales up 27 percent at 3,19,965 units versus 2,51,965 units (YoY)

Indian equity benchmarks erased gains dragged by Sun Pharma, Reliance Industries and Mahindra & Mahindra.

The S&P BSE Sensex fell 0.05 percent or 19 points to 36,174 and the NSE Nifty 50 Index dropped 0.12 percent or 13 points to 10,864.

Six of 11 sector gauges compiled by National Stock Exchange were trading lower led by the Nifty Pharma Index's 2.35 percent drop. On the flipside, Nifty Metal Index was top gainer, up 2.1 percent.

Qatar will withdraw from the Organization of Petroleum Exporting Countries from Jan. 1, Minister of State for Energy Affairs Saad Sherida Al-Kaabi said in Doha.

The decision to withdraw is “technical” and country intends to focus on natural gas production; it will not be bound by OPEC’s agreements after exit from the group, Al-Kaabi said at a press conference in Doha.

Source: Bloomberg

• Max India: The Delhi-based insurance and healthcare services provider rose as much as 3.8 percent to Rs 62.85. Trading volume was over nine times its 20-day average.
• Sun Pharma: The Mumbai-based country's largest drugmaker fell as much as 10.44 percent to Rs 441. Trading volume was over eight times its 20-day average.
• Tata Power: The Mumbai-based power producer rose as much as 7.4 percent to Rs 81.70. Trading volume was more than seven times its 20-day average.
• Godrej Agrovet: The Mumbai-based animal feed maker rose as much as 4 percent to Rs 516. Trading volume was more than six times its 20-day average.

Indian Navy is reviewing the contract awarded to Reliance Naval and Engineering Ltd. for supply of patrol vessels, Sunil Lanba, the country’s naval chief, says at a briefing in New Delhi.

• Navy has encashed the bank guarantees provided by Reliance Naval; contract not yet canceled: Lanba
• Navy assessing Reliance Naval’s spending capacity; co. has been through debt recast and also sued by lenders

Source: Bloomberg

Shares of the companies operating coal-based power plants rose after the Gujarat government decided to raise tariffs of Tata Power, Adani Power and Essar Power by amending their power purchase agreements, The Economic Times reported.

• Tata Power rose 8 percent to Rs 82
• Adani Power rose 4.6 percent to Rs 58
• Power Grid rose 4 percent to Rs 187
• REC rose 8 percent to Rs 108
• Power Finance Corporation rose 12 percent to Rs 96

• Infosys has 11 alkh shares change hands in a block on NSE. Stock up 0.4 percent at Rs 669.50.
• ICICI Bank has 24 lakh shares change hands in two block deals. Stock down 0.08 percent at Rs 354.85.

Source: Bloomberg

Hindustan Unilever's board approved merger of GSK Consumer Healthcare with itself pending requisite approvals from statutory authorities and shareholders, Hindustan Unilever said in an exchange notification.

• GSK Consumer Healthcare shareholders will be allotted 4.39 shares of Hindustan Unilever for every one share held.
• Transaction values GSK Consumer Healthcare at Rs 31,700 crore.

Shares of Hindustan Unilever surged as much as 4.62 percent, the most since Feb. 15, to record high of Rs 1,835 after its board approved acquiring GSK Consumer Healthcare.

The Raigad-based pipe maker rose as much as 5.41 percent to Rs 500 after it won contract valued Rs 420 crore for supply of casings, line pipes, etc to ONGC.

Indian equity benchmarks rose for sixth straight day, with NSE Nifty 50 Index clocking its longest winning streak since April. However, the gains were capped as Sun Pharma, Reliance Industries and Mahindra & Mahindra came under selling pressure.

The S&P BSE Sensex rose 0.13 percent or 47 points to 36,241 while the NSE Nifty 50 Index was little changed at 10,884.

Fifteen of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Power Index's 2.5 percent gain. On the other hand, the S&P BSE Healthcare Index was top loser, down 1.2 percent.

The mid- and small-cap shares outperformed their larger peers as the S&P BSE MidCap and S&P BSE SmallCap Indices rose 0.46 percent each.

The Indian rupee closed 1.2 percent lower against the U.S. dollar, recording its worst decline since Aug. 13.

The rupee was the worst performing emerging market currency today after crude oil prices advanced and India’s economic growth in the second quarter missed estimates. The local unit closed at 70.46 against the dollar.