Sensex, Nifty Close At A Three-Month Low Dragged By Reliance, I.T. Stocks

India's stock benchmarks closed at three-month lows, dragged by broad-based losses across sectors. Index heavyweights Reliance Industries Ltd., Tata Consultancy Services and Infosys Ltd. led the decline. Both the S&P BSE Sensex and NSE Nifty 50 posted their lowest close since August 27. Concerns over the omicron strain of covid-19 virus and the hawkish stance of U.S. Federal Reserve with respect to tapering the monetary stimulus sapped sentiment.

The S&P BSE Sensex shed 1.65% to 56,747.14. This is the steepest decline for the 30-stock gauge since November 26. This is also the first time the Sensex closed below 57,000 since August 30. The NSE Nifty 50 index also declined 1.65% to a three-month low of 16,912.25. This is the first time the 50-stock index closed below 17,000 since November 30.

Infosys Ltd. contributed the most to the index decline, decreasing 2.3%. IndusInd Bank Ltd. had the largest drop, falling 3.7%. Today, 49 of 50 shares fell, while 1 rose

The broader indices almost mirrored their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap shedding 1.35%. All the 19 sectoral indices compiled by the BSE Ltd. declined with S&P BSE Information Technology and S&P BSE Teck falling 2.5%. S&P BSE Energy and S&P BSE Telecom shed 2% as well.

The market breadth was skewed in the favour of bears. About 1,419 stocks advanced, 2,002 declined and 178 remained unchanged.

"The market witnessed some correction after a failed attempt to sustain the Nifty 50 Index level of 17,200. The market research suggests that 16,800 will be an important support level in the market. If the market is unable to sustain the market levels of 16,800, we will witness correction to continue in the market till the level of 16,400", Vijay Dhanotiya, Senior Research Analyst at CapitalVia Global Research Ltd. wrote in a note and advised the traders to refrain from building a fresh buying position, until further improvement in the market conditions.

Siddhartha Khemka, Head - Retail Research at Motilal Oswal Financial Services Ltd. identified concern over the new variant of Covid and the upcoming RBI meeting on interest rate as major reasons for the volatility in equity markets. He expected the market volatility to remain high until there is clarity on the impact of the new virus and added that FII selling remained pretty strong adding to the overall market weakness.

Indian bonds gained on hopes that the central bank may hold back on raising the reverse repo rate amid uncertainty over the omicron variant and after China cut its reserve requirement ratio. The rupee fell for a third day as local stocks slide

• 10-year yields down 1bp at 6.36%; 5-year yield drops 1bp to 5.69%

• USD/INR rose 0.3% to 75.4238; rose to 75.4587, the highest since Oct. 13

Source: Bloomberg

India’s digital asset growth over the next 11 years will come from businesses that are yet to be invented, U.S. crypto firm CrossTower Inc. and the US-India Strategic Partnership Forum said in a report.

• The digital asset economy’s value to India’s GDP will grow at 43.1% CAGR from $5.1 billion in 2021 to $261.8 billion over an 11-year period.

Source: Bloomberg

India’s benchmark index extends drop as all but one of its 30 companies decline, dragged by software exporters Infosys and Tata Consultancy Services.

• NSE Nifty 50 index also falls 1.4%.

• All of the 19 sector indexes on the BSE Ltd. declined; S&P BSE Information Technology Index was the worst performer.

Source: Bloomberg

Shares of Bajaj Holdings & Investment Ltd. shed 4.8%, the steepest intraday decline in eight months.

• Trading volume was 2.5 times the 30-day average volume, for this time of the day.

• The company is priced at 1.5 times the book value.

While profitability metrics of Indian steel companies will remain at healthy levels in the next twelve months, higher input costs and softening prices may impact profits from the current quarter, according to ICRA Ltd., the local unit of Moody’s Investors Service.

• Consumption cost of coking coal is expected to increase by around 65%-70% QoQ in current three-month period, with lower iron ore prices unable to entirely compensate for that higher cost, according to ICRA’s calculations.

• Input cost pressures could moderate somewhat toward the later part of next quarter as seaborne coking coal prices have declined since the highs of mid-November, the benefit of which would slowly get reflected in margins after a lag of 2-3 months.

• Given aggressive deleveraging by steel firms over the last five quarters, the domestic industry is more resilient to withstand any exogenous shocks.

Source: Bloomberg

Tata Power Co Ltd. and IIT Madras announced an MoU to collaborate in R&D, policy advocacy, consultancy, training and commercialisation of technologies and solutions.

As part of the MoU, Tata Power and IIT Madras will pursue advanced research in areas of future technology. The agreement also includes campus recruitment opportunities to postgraduate students of IIT Madras.

Source: Exchange Filing

Shares of GMR Infrastructure Ltd. rose for the fifth consecutive session, extending the longest winning streak since the period ended April 17, 2020.

The stock has gained 13% during the streak compared to the Sensex, which shed 0.2%.

Source: Bloomberg

Shares of Indian Energy Exchange Ltd. rose over 1.5% to Rs 259.75 apiece after the company achieved 9,477 million units volume in November 2021, up 54% YoY. This comprised 6,333 million units in the conventional power market, 457 million units in the green power market and 2,687 MU in the certificate market comprising ESCerts and REC.

Source: Exchange Filing

• Satin Creditcare to also issue warrants of upto Rs 200 crore

• Satin Creditcare to raise funds from founders, Florintree

Source: BSE

BLOOMBERG EXCLUSIVE

• Goldman Sachs and Morgan Stanley are among institutional investors bidding to participate in the IPO of India's digital map provider MapmyIndia.

• Mutual funds of HDFC, SBI, Aditya Birla Group and ICICI Bank are also said to be bidding to become anchor investors in the IPO.

• IPO said to value the mapmaker at Rs 5,500 crore

Source: People familiar with the matter.

Shares of Parsvnath Developers Ltd. rose over 7% to Rs 19.6 apiece after the company received the lease plan for the commerical plant in Greater Noida, having area admeasuring 4,751.16 square metre, allotted to it by the authority.

Trading volume on the stock was 1.6 times the 30-day average volume for the day.

Source: NSE, Bloomberg

Shares of Morepen Laboratories Ltd. jumped over 14.3% in intraday trade to Rs 60.2 apiece after the company received U.S. FDA approval for anti-allergy drug Fexofinadine Hydrochloride, according to an exchange filing during market hours Friday. Over the past two sessions, shares of Morepen Laboratories have surged over 16%.

The drug is sold in India under the brand name Allegra. Morepen is the third largest exporter of the drug, globally and the U.S. FDA approval is likely to drive more exports.

Trading volume on the stock is 14.5 times the 30-day average volume, for this time of the day. Stock price rose above 50-day moving average of Rs 52.67 on high trading volume.

India's stock benchmarks declined nearly 1%, dragged by losses in information technology, auto, healthcare, fmcg and energy stocks, amid rising concerns over omicron strain of covid-19 virus and hawkish commentary by the U.S. Federal Reserve.

The S&P BSE Sensex shed 0.83% to 57,216.49. The NSE Nifty 50 index also declined by a similar magnitude to 17,063.30. Infosys Ltd. contributed the most to the index decline, decreasing 2.0%. HCL Technologies Ltd. had the largest drop, falling 2.7%. In midday trading, 43 of 50 shares fell, while 7 rose.

The broader indices almost mirrored their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap shedding 0.3%. All the 19 sectoral indices compiled by the BSE Ltd. declined, led by S&P BSE Information Technology, TECK, Energy & Auto indices.

The market breadth was skewed neither in the favour of bulls nor bears. About 1,642 stocks advanced, 1,656 stocks declined and 177 remained unchanged.

Shares of Inox Wind Ltd. jumped over 6% in intraday trade to Rs 154.45 apiece before erasing the gains. The company said that its unit Inox Green Energy Services Ltd. will seek to raise Rs 500 crore ($66.4 million), selling new shares in an IPO, according to an exchange filing by Inox Wind.

The IPO may also have an offer of sale of shares by some existing shareholders. Inox Wind will consider participation in the unit's IPO.

Trading volume on the stock was 7.1 times the 30-day average volume, for this time of the day.

• Federal Bank Ltd. is seeing a pick up in demand for loans in India as the country's economy gains strength and remains on track to post the fastest growth among major economies.

• The outlook for the year looks quite good on the demand side.

• We can see a lot of green shoots all around and if developments on omicro are manageable, then there will be optimism for the year ahead.

Shyam Srinivasan, CEO, Federal Bank in an interview to Bloomberg TV

Shares of KPI Global Infrastructure Ltd. rose nearly 4% in intraday trade before erasing the gains. The company received confirmation of orders to execute solar power project of 1.10 Mega Watt (direct current) capacity from three clients under the 'Captive Power Producer (CPP)' segment of the company.

The three clients are namely (i) Chougle Salt Works Pvt Ltd., (ii) Gandhan Food Products Pvt Ltd. and (iii) Murlidhar Tex Prints Pvt Ltd.

Trading volume on the stock was 1.5 times the 30-day average volume, for this time of the day. The relative strength index on the stock was at 75, suggesting it may be overbought.

Shares of Siemens Ltd. rose nearly 2% in intraday trade before erasing them, as analysts cited the company's strong volume performance in Q4FY22 and resilience in building segment as key triggers for growth.

Analysts at Equirus Securities raised the stock to 'add' from 'reduce' and increased the target to Rs 2,280 from Rs 2,040 after the company delivered a four consecutive quarter of strong volume performance in Q4.

Equirus Securities

• Raises to 'add' from 'reduce', with the target price increased to Rs 2,280 from Rs 2,040, an implied upside of 5%.

• Company posted fourth straight quarter of strong volume performance in Q4.

• Expect company to deliver EBITDA margin of 12.5%/12.9% in FY23E/FY24E despite the impact due to commodity inflation and tight supply chain scenario.

• High localisation, value addition in automation and digitalisation to drive margin.

• Marginally increase EPS estimates to factor in resilient volume and margin performance in a challenging environment.

• Order inflows across segments remain encouraging

• Economic revival and rising capex spends to aid demand

• Building automation, e-charging infrastructure, pharma, F&B and automotive segments to be key growth drivers.

Motilal Oswal

• Maintains 'neutral' with the price target kept unchanged at Rs 2,065; an implied return of -6%

• Company's performance in building segment was resilient, while ordering activity declined for the industry.

• Rise in capacity levels could lead to newer capex.

• Order inflows remained robust, led by short cycle orders resulted in revenue growth.

• Healthy order inflow in services segment augurs well for the company.

• Quick adoption of digital and automation technologies to aid demand for key digital offerings like OT cybersecurity solutions, industrial edge, IOT solutions etc.

• C&S Electric integration remains on track, with exports being the key thesis. The company has already commenced exports to South Asia.

• Expect margins to be on an uptrend over a 3-5 year period.

Of the 29 analysts tracking the company, 14 maintained 'buy', eight maintained 'hold' and seven maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 2.5%.

Shares of Carborundum Universal Ltd. rose over 2.1% to Rs 928.6 apiece after the company entered into an agreement to acquire an existing company in Germany. The acquired entity will become a step-down subsidiary of Carborundum.

In an exchange filing, the company said that the acquistion will serve as a base in European Union and facilitate the company to access markets in the region for its entire portfolio, including abrasives, ceramics and electrominerals.

Of the 12 analysts tracking the company, 10 maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 0.6%

Shares of NMDC Ltd. fell over 3%, the steepest intraday decline in a week, to Rs 141.5 apiece after the company fixed December 15 as the record date for the payment of interim dividend at the rate of Rs 9.01 per equity share of face value at Rs 1 each for the financial year 2021-22, post market hours Friday.

Of the 24 analysts tracking the company, 15 maintained 'buy', five maintained 'hold', four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 31.4%.

Trading volume on the stock was 2.8 times the 30-day average volume, for this time of the day.

Shares of Parag Milk Foods Ltd. rose over 4%, the most in intraday trade in a week, to Rs 121.2 apiece after the company received approval of application under PLI Scheme-Category 1 of mozzarella cheese.

In an exchange filing, the company said that its PLI application dated June 14 was approved by government for sales-based incentive for mozzarella cheese product for the period 2021-27.

The maximum permissible amount is Rs 71 crore under the scheme, to be spread over the six-year timeframe.

Of the five analysts tracking the company, three maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 31.6%.

Indian bonds are largely ranged despite a drop in U.S. yields on Friday as traders weigh debt sales by the central bank for the second straight week in the secondary market.

• 10-year yields steady at 6.37%; 5-year yield up 1bp to 5.71%

• USD/INR rose 0.1% to 75.2238

• Reserve Bank of India’s rate-setting panel starts its meeting to review monetary policy on Monday; decision due on Wednesday

Maturities across the India sovereign yield curve were little changed in Monday morning trading.

• The 4-year yield rose 1bp to 5.393%

• The 10-year yield was little changed at 6.367%

• The 14-year yield remained unchanged at 6.754%

• The 4-year-10-year yield spread was 97.4bps, vs previous close 98.6bps

Source: Bloomberg

• Metro Brands seeks to raise Rs 295 crore selling new shares in IPO

• Shareholders of Metro Brands to sell up to 21.45 million shares in IPO

Source: Bloomberg

Shareholders of MapmyIndia’s operator C.E. Info Systems Ltd.will sell shares in a range of Rs 1,000-1,033 in an initial public offering that could raise as much as Rs 1,040 crore, according to an advertisement in the Financial Express newspaper Monday.

• The IPO will be open for subscriptions Dec. 9-13; anchor investors can bid on Dec. 8

• IPO includes offer for sale by investors Qualcomm Asia Pacific Pte. for up to 2.7 million shares and 1.37 million shares by Zenrin Co. Ltd.; founder Rashmi Verma will sell 4.25 million shares, other shareholders selling 1.74 million shares

• Investors can bid for minimum 14 shares of face value 2 rupees each in the sale, which opens Dec. 9 and closes Dec. 13

• Axis Capital, JM Financial, Kotak Mahindra Capital and DAM Capital are managing the IPO which constitutes 18.9% of post-issue capital

Source: Bloomberg

• IndiaMart InterMesh Ltd. rated 'new buy' at Batlivala & Karani; price target: Rs 8,926

• Hindustan Unilever raised to 'buy' from 'add' at Kotak Securities, price target: Rs 2,925.21

Source: Bloomberg

Shares of BCL Industries Ltd. rose over 9%, the most in over two months, to Rs 261 apiece after the company was allocated a quantity of 3.60 crore litres of ethanol in tender floated by oil marketing companies. The tender is for the period from December 1, 2021 to November 30, 2022.

• The company has also applied for additional capacity of 0.50 crore litres. BCL Industries expects its subsidiary Svaksha Distillery Ltd. to commence commercial production of ethanol in the last quarter of FY2021-21.

• The per unit rate of ethanol made from damaged food grains has been fixed at Rs 52.92 per litre.

• Trading volume on the stock was 22.5 times the 30-day average volume, for this time of the day.

Shares of Eris Lifesciences Ltd. rose 9.77%, the biggest intraday gain in over five months, to Rs 774 apiece, after the company announced a joint venture with MJ Biopharm to enter the insulin segment.

In an exchange filing, the company said that the 70:30 JV will focus primarily on marketing and distributing human and analog insulins. The JV intends to commercialise 'recombinant human insulin' to be marketed in vials and cartridges.

After the execution of shareholder agreement, Eris Lifesciences will hold 70% share (1,82,504 equity shares of face value Rs 10 each) and MJ Biopharm will hold 30% share (78,200 equity shares of face value Rs 10 each). Eris has the right to appoint three directors out of the total five. Upon completion of the agreement, MJ Biopharma will be paid a one-time license fee of Rs 14 crore.

Analysts at the brokerage firm Prabhudas Lilladher believe that the JV with MJ Biopharm will widen the offerings of Eris Lifesciences in diabetics market and make it full-service player in the segment. However, the firm expected the market share gain in the segment could be gradual for the company given the domination of MNC players in the diabetics market.

Prabhudas Lilladher

• Maintains 'buy' recommendation with the target price unchanged at Rs 954.

• Positive on the company due to (i) scheduled potential launches, (ii) strong pipeline of patent expiration opportunities and (iii) rapidly growing new-generation brands.

• Strategy to expand capacity and rising contribution from chronic/sub-chronic products augur well for growth prospects.

• Company targetting 10% market share in the human insulin market in India after the joint venture.

Of the eight analysts tracking the company, six maintained 'buy' and two maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 27.2%.

Trading volume on the stock was 33 times the 30-day average volume, for this time of the day.

Shares of Godrej Properties Ltd. rose over 4.3% to Rs 2,107.75 apiece after the company entered into a joint venture with TDI Group to develop an ultra-luxury residential project in Connaught Place in New Delhi.

In an exchange filing, the company said that the project is estimated to have a developable potential of nearly 1,25,000 square feet saleable area

Of the 19 analysts tracking the company, three maintained 'buy', five maintained 'hold' and 11 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 11.9%.

India's stock benchmarks opened lower, dragged by metals and consumer durables stocks, amid uncertainties over the omicron variant of covid-19 virus and the hawkish tilt of U.S. Federal Reserve.

The S&P BSE Sensex fell 0.27% to 57,538.41. The NSE Nifty 50 index also declined 0.1% to 17,190.

The broader indices almost mirrored their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap shedding nearly 0.2%. Thirteen of the 19 sectoral indices compiled by the BSE Ltd. advanced with S&P BSE Realty gaining 1%.

The market breadth was skewed in the favour of bulls. About 1,511 stocks advanced, 1,014 declined and 137 remained unchanged.

Indian bond traders will weigh debt sales by the central bank for the second straight week in the secondary market. A slide in U.S. yields on Friday may however support at open.

• India’s central bank sold Rs 1,830 crore of bonds in the week to November 26, data from the RBI’s weekly statistical supplement showed after close of markets on Friday.

• Sales happened after the RBI sold Rs 1,180 crore in the week before that.

• Reserve Bank of India’s rate-setting panel starts its meeting to review monetary policy on Monday; decision due on Wednesday.

• USD/INR rose 0.2% to 75.1687 on Friday

• 10-year yields rose 2bps to 6.37%

• Global funds sell net Rs 3,360 crore of India Stocks Friday: NSE

• They sold Rs 498 crore of sovereign bonds under limits available to foreign investors, and added Rs 408 crore of corporate debt.

• State-run banks bought Rs 4,680 crore of sovereign bonds on Dec. 3: CCIL data. Foreign banks sold Rs 1,950 crore of bonds.

Source: Bloomberg

RattanIndia Enterprises-backed Revolt Motors announced expansion of retail presence in South India with the opening of their new store in Madurai, Tamil Nadu. This is the company's first store in the city and 17th store across the country.

In an exchange filing, RattanIndia said it looked forward to suffice the demand from the southern states and intended to expand its retail presence further by entering 50+ new cities including Chandigarh, Lucknow and NCT by early 2022.

The company has seen strong response for its flagship RV400, which it said, was sold out within minutes of going on sale at every instance.

Godrej Properties Ltd. entered a joint venture with TDI Group to develop an ultra-luxury residential project in Connaught Place in New Delhi.

The project is estimated to have a developable potential of nearly 1,25,000 square feet saleable area, the company said in an exchange filing.

• Bharti Airtel cut to 'reduce' from 'add' by Spark Capital Advisors; price target: Rs 730 apiece

• Tata Power cut to 'sell' from 'buy' by BOB Capital Markets; price target: Rs 181

• ICICI Bank raised to 'buy' from 'accumulate' by KR Choksey; price target: Rs 955

Shriram Properties Ltd. will offer shares at Rs 113-118 ($1.50-1.57) in its initial public offering, it said in an advertisement in the Financial Express.

The retail portion of the offer is capped at 10%, while qualified institutional buyers will make up at least 75%, the company said. The offer opens Dec. 8 and closes Dec. 10.

Axis Capital Ltd., ICICI Securities Ltd., and Nomura Financial Advisory & Securities (India) Pvt. are lead managers for the offer.