Sensex, Nifty Close Flat As Losses In Metals Offset Pharma Gains

India's stock benchmarks closed little changed, as gains in healthcare and consumer durables stocks were offset by the losses in metal stocks.

The S&P BSE Sensex was little changed at 60,718.71. The 30-stock gauge rose above 61,000 for the first time since October 28. The NSE Nifty 50 index also largely unchanged at 18,109.45. ITC Ltd. contributed the most to the index gain, increasing 2.2%. Power Grid Corp. of India had the largest increase, rising 3.5%. Today, 22 of 50 shares rose, while 28 fell.

The S&P BSE Midcap index outperformed the Sensex and Nifty gaining 0.41% while S&P BSE Smallcap index underperformed its larger peers shedding 0.2%. Ten of the 19 sectoral indices compiled by the BSE Ltd. advanced with the S&P BSE Healthcare index adding over 2%. On the flipside, the S&P BSE Metal index fell over 2.3%.

The market breadth was skewed in the favour of bears. About 1,306 stocks advanced, 2,110 declined and 160 remained unchanged

• PI Industries Ltd. raised to 'accumulate' from 'hold' at Asian Markets Securities; price target: Rs 2,825

• Natco Pharma raised to 'add' from 'hold' at ICICI Securities; price target: Rs 941.

• Rites cut to 'add' from 'buy' at Equirus Securities Pvt Ltd; price target: Rs 323

Source: Bloomberg

Bengaluru-based eMudhra Ltd. has sought SEBI’s approval to raise as much as Rs 200 crore($26.9 million) selling new shares, while its shareholders plan to sell up to 8.51 million shares as part of an initial public offering, according to its initial prospectus.

• The company may consider a pre-IPO placement of up to Rs 39 crore; new share sale in the IPO will be lower by the amount raised in any pre-IPO sale

• IIFL Securities, Yes Securities and Indorient Financial Services are the banks managing the sale

• eMudhra had a 37.9% share in the digital signature certificates market space in 2020-21 financial year, up from 36.5% a year earlier, it said in the prospectus

Source: Bloomberg

Shares of Fine Organic Industries Ltd. rose over 13.6% in intraday trade to Rs 3,724.9 apiece after the company reported net income and revenue above average analyst estimte in the September quarter post market hours Friday.

Second quarter Results (Consolidated, QoQ)

• Net profit at Rs 49.88 crore vs Rs 35.92 crore (Rs 42.1 crore)

• Revenue at Rs 439.40 crore vs Rs 357.57 crore (Estimate: Rs 395.6 crore)

• Total costs at Rs 376.32 crore vs Rs 316.39 crore

• Other income at Rs 6.17 crore vs Rs 5.93 crorere

Of the 10 analysts tracking the company, four maintained 'buy', five maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 6.9%.

• The relative strength index on the stock was 70, suggesting it may be overbought.

• Trading volume on the stock was 9.4 times the 30-day average volume, for this time of the day.

Shares of PI Industries Ltd. rose over 7.2% in intraday trade to Rs 2,935.95 apiece after the company reported sequential growth in net profit and revenue in the September quarter post market hours Friday.

PI Industries Q2FY22 (Consolidated, YoY)

• Revenue at Rs 1,354.20 crore Vs Rs 1,193.8 crore

• Net profit at Rs 229.60 crore Vs Rs 187.2 crore

• Total costs at Rs 1,114.8 crore vs Rs 997 crore

• Other income at Rs 27.7 crore vs Rs 27.7 crore

Of the 29 analysts tracking the company, 20 maintained 'buy', three maintained 'hold' and six maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 3.8%

Nirmal Bang

• Raises stock to 'accumulate' from 'sell' with the target price reduced to Rs 2,714 from Rs 2,827 earlier.

• Comforted by the company's goa to develop high-value CSM services in both agrochem and pharma sectors.

• Company committed to pursue M&A opportunities in Pharma vigorously after calling off the business transfer agreement to acquire Ind-Swift Laboratories' pharma API business.

• See a bull case/bear case valuation of Rs 2,971/Rs 2,592.

• 8-10% growth seen in Indian CPC business in the next 4-5 years.

• Company's entry into biochemistry augurs well for growth prospects.

Shares of Fortis Healthcare Ltd. rose over 9% in intraday trade to Rs 280.7 apiece after the company reported sequential growth in revenue in the September quarter, post market hours Friday.

Second Quarter Results (Consolidated, QoQ)

• Revenue at Rs 1,462.54 crore vs Rs 1,410.31 crore

• Net profit at Rs 130.60 crore vs Rs 430.61 crore

• Total costs at Rs 1,293.07 crore vs Rs 1,246.40 crore

• Other income at Rs 8.02 crore vs Rs 7.84 crore

Of the 10 analysts tracking the company, eight maintained 'buy' and two maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 3.5%.

Shares of SpiceJet Ltd. shed 4.3%, the steepest intraday decline in over a month, to Rs 70.8 apiece after the company reported widening of loss in the September quarter.

Second Quarter Results (Consolidated, YoY)

• Revenue up 26% at Rs 1,345.43 crore Vs Rs 1,070.56 crore

• Net loss at Rs 570.55 crore Vs Rs 105.61 crore

• Ebitda loss of Rs 308.33 crore Vs Ebitda gain of Rs 47.71 crore

• Expects to start with 737 Max on regulatory approvals

Of the 10 analysts tracking the company, one maintained 'buy', four maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 8.4%.

ICICI Securities

• Maintains 'hold' with the target price raised to Rs 76 from Rs 71 earlier.

• Company continues to maintain revenue momentum in its cargo business.

• Recapitalisation remains a key trigger for business.

• Company is in the process of hiving off SpiceXpress, its logistics arm.

• SpiceXpress to unlock value for SpiceJet.

• Expectation of a new airline coming up in India as well as the continued impact of Covid and rising fuel price remain key near-term pressure points.

• Godrej Industries cut to 'add' from 'buy' at ICICI Securities; price target: Rs 672

• Grasim cut to 'reduce' from 'add' at Choice Equity; price target: Rs 1,573

• Bharat Forge raised to 'buy' from 'accumulate' at Prabhudas Lilladher; price target: Rs 997

Source: Bloomberg

• Bharti Airtel Ltd. has formed a Committee of Board of Directors to specifically focus on ESG norms.

• Manish Kejriwal, lead independent director on the board will be the chairman of the ESG committee.

• The committee will provide strategic guidance and oversight to Airtel's progress on ESG transformation and initiate response to challenges due to climate change through sustainable business practices.

Source: Exchange Filing

• Abbott India cut to 'hold' from 'add' at ICICI Securities; price target: Rs 18,971

• NMDC raised to 'buy' from 'neutral' at Ashika Stock Broking; price target: Rs 179

Source: Bloomberg

Tata Consultancy Services Ltd. announce it has worked with Juniper Networks, a global leader in secure, artificial intelligence-driven networks to roll out a new service platform.

The new platform focus on delivering superior experiences to its customers and partners.

This future-ready, digital platform intends to enable capabilities to help Juniper Networks realise its growth and transformation vision.

Source: Exchange Filing

Bosch India Ltd. announced that SC Srinivasan, Joint Managing Director and Chief Financial Officer has opted for early retirement due to personal reasons. In an exchange filing, the company announced that the resignation from the current position will be effective from the close of business hours on December 31, 2021.

Source: Exchange Filing

• Thermax raised to 'buy' from 'sell' at Kotak Securities; price target: Rs 1,900

• SpiceJet cut to 'hold' from 'buy' at Edelweiss Capital; price target: Rs 70

• GMR Infrastructure cut to 'hold' from 'buy' at Edelweiss Capital price target: Rs 42

Source: Bloomberg

India's stock benchmarks remained little changed and pared morning gains, as gains in healthcare and consumer durables stocks were offset by losses in metal, telecom and auto stocks.

The S&P BSE Sensex was little changed at 60,750.18. The 30-stock gauge reclaimed 61,000 mark in intraday trade for the first time since October 26. The NSE Nifty 50 index also traded flat at 18,124.90. Infosys Ltd. contributed the most to the index gain, increasing 0.9%. Power Grid Corp. of India had the largest increase, rising 2.5%. In midday trading, 23 of 50 shares rose, while 27 fell.

The broader indices mirrored their larger peers with S&P BSE Midcap index gaining 0.2% and S&P BSE Small index trading largely unchanged. Ten of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Healthcare index rising nearly 1.8%. On the flip side, S&P BSE Metal index rose over 1.5%.

The market breadth was skewed in the favour of bears. About 1,285 stocks advanced, 2,044 declined and 149 remained unchanged.

Shares of Coal India Ltd. shed over 3.8%, the steepest decline in intraday trade in over two weeks, to Rs 160.5 apiece after reporting net income and revenue below the average analyst estimate in the September quarter.

Coal India Q2FY22 (Consolidated, QoQ)

• Revenue down 7.8% at Rs 23,291.08 crore Vs Rs 25,282.15 crore (BBG estimate: Rs 23,751 crore)

• Net profit down 7.3% at Rs 2,936.91 crore Vs Rs 3,169.86 crore (BBG estimate: Rs 3,048 crore)

• Ebitda down 18.6% at Rs 3,942.34 crore Vs Rs 4,843.85 crore (BBG estimate: Rs 4,798 crore)

• Margins at 16.9% vs 19.2%

Of the 28 analysts tracking the company, 22 maintained 'buy', four maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 23.7%.

Jefferies

• Maintains 'hold' recommendations with the target price reduced to Rs 170 from Rs 180; an implied return of 1.83%.

• Lower-than-expected e-auction volumes and realisations weighed on Q2 earnings.

• Higher staff cost to wage revision likely to pose a headwind.

• Not convinced that the coal-related energy shortages have resolved as supply constraints are real and demand should strengthen in winter.

• Expect market to remain tight and prices high in winters before easing in spring.

• Long-term outlook for coal continues to remain weak.

• Higher global coal prices should aid e-auction realizations for the company in H2.

• Long-term concerns around capability to deliver sustainable volume growth remain.

ICICI Securities

• Maintains 'buy' with the target kept unchanged at Rs 234; an implied return of 45.57%

• Higher diesel and explosive costs, higher depreciation and lower other incomes could force the company to undertake price hikes in the next few months.

• Higher offtake and flat YoY average realisation aided revenue growth.

• Expect realisations to improve further in Q3FY22 as several coal importers are likely to participate in domestic auction due to significantly costlier international coal.

• Dilip Buildcon cut to 'add' from 'buy' at Kotak Securities; price target: Rs 660

• Burger King India raised to 'reduce' from 'sell' at Kotak Securities; price target: Rs 161

• NALCO cut to 'add' from 'buy'; price target: Rs 110

Source: Bloomberg

Shares of Teamlease Services Ltd. shed 8.4%, the steepest intraday decline in seven months after the company swung to losses in the quarter ended September.

Second Quarter (Consolidated, QoQ)

• Net loss at Rs 49.34 crore vs net profit of Rs 26.92 crore

• Revenue at Rs 1,523.56 crore vs Rs 1,376.78 crore

• Total costs at Rs 1,501.93 crore vs Rs 1,357.31 crore

• Other income at Rs 5.40 crore vs Rs 4.56 crore

Of the 14 analysts tracking the company, eight maintained 'buy', two maintained 'hold' and four maintained 'sell' recommendations. the overall consensus price of analysts tracked by Bloomberg implied an upside of 4.5%.

• Trading volume on the stock was 6.1 times the 30-day average volume, for this time of the day. Stock price crossed below 50-day moving average on high trading volume.

• Consensus analyst recommendation fell from 'buy' to 'hold' as on today, as 4 analysts downgraded the stock in the past three days following the earnings.

Shares of Thyrocare Technologies Ltd. surged nearly 15% to Rs 1,298 apiece after the company reported sequential growth in net profit and revenue in the September quarter.

Second Quarter Numbers (Consolidated, QoQ)

• Net profit at Rs 77.73 crore vs Rs 55.58 crore

• Revenue at Rs 176.21 crore vs Rs 164.65 crore

• Total costs at Rs 95.77 crore vs Rs 101.33 crore

• Other income at Rs 15.19 crore vs Rs 10.49 crore

Of the six analysts tracking the company, three maintained 'buy', two maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 1.8%.

• Rupee bonds advanced after consumer prices accelerated only at a slightly higher pace than the forecast. Traders are awaiting wholesale inflation print and October trade data. The rupee advanced for a second day.

• 10-year yields fell by 2 bps to 6.35%

• USD/INR up 0.1% to 74.3562

Source: Bloomberg

Vakrangee Ltd. has tied up with Corival Life Sciences Pvt Ltd. to provide complete range of ayurvedic and herbal prodcuts and nutraceutical healthcare and dietary supplements to customers across the remotest parts of the country.

Corival is primarily engaged in developing, manufacturing and marketing a variety of herbal, healthcare products. It's a partnership between Biogetica USA and Wockhardt Foundation.

Source: Exchange Filing

Max Ventures & Industries Ltd., has entered into a definitive agreement with its Japanese partner in Max Speciality Films Ltd, Toppan Printing, to divest 51% stake in the specialty packaging films business for an enterprise value of Rs 1,350 crore.

This roughly translates to an equity value of Rs 600-650 crore.

This divestment markets the exit of Max Ventures from non-core business. The company will focus entirely on real estate business in the premium residential and commercial space in Delhi-NCR

After the divestment, the company will be able to create a war-chest of over Rs 1,000 crore from sale proceeds, internal accruals.

Source: Exchange Filing

• The Rs 1,023.8-crore initial public offering of Kolkata-based labware manufacturer Tarson Products Ltd. launched today.

• The company specialises in the design, development, and manufacture of laboratory equipment.

• Tarson Products has fixed the price band at Rs 635-662 apiece.

Subscription Details: Day 1

The IPO was subscribed 0.86 times as of 3 p.m. on Nov. 15.

• Institutional investors: 0 times.

• Non-institutional investors: 0.09 times.

• Retail investors: 1.68 times.

• Employees: 0.19 times.

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

• The 1-year yield remained unchanged at 4.172%

• The 10-year yield fell 1.2bps to 6.356%

• The 30-year yield remained unchanged at 6.926%

• The 1-year-10-year yield spread was 218.4bps, vs previous close 219.6bps

Source: Bloomberg

• Navin Fluorine raised to 'buy' from 'hold' at Anand Rathi Securities; price target: Rs 4,250

• Brigade Enterprises cut to 'add' from 'buy' at ICICI Securities; price target: Rs 555

• Teamlease cut to 'reduce' from 'buy' at Prabhudas Lilladher; price target: Rs 4,259

Source: Bloomberg

• GAIL India has 1.7 million changes hands in a bunched trade.

• Details of buyers and sellers are not immediately known

Source: Bloomberg

• Motherson Sumi cut to 'accumulate' from 'buy' at Elara Securities India; price target: Rs 283

• Dalmia Bharat raised to 'outperform' from 'neutral'; price target: Rs 2,415

• Bharat Forge raised to 'buy' from 'accumulate' at Dolat Capital; price target: Rs 905

Source: Bloomberg

Shares of Apollo Hospitals Enterprise Ltd. rise over 9% to Rs 5,099.9 apiece after the company after the company reported net income for the second quarter above the average analysts estimate.

Apollo Hospitals Enterprise Q2FY22 (Consolidated, YoY)

• Revenue up 35% at Rs 3,717.07 crore Vs Rs 2,760.72 crore (Bloomberg Consensus Estimate: Rs 3,528 crore.

• Net profit at Rs 267.41 crore Vs Rs 58.99 crore (Estimate: Rs 184 crore)

• Ebitda at Rs 614.99 crore Vs Rs 299.85 crore

• Margins at 16.5% Vs 10.9%

Of the 23 analysts tracking the company, 21 maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 2.3%.

The relative strength index on the stock was 77, suggesting that it may be overbought.

Trading volume on the stock was nearly 10 times the 30-day average volume, for this time of the day.

Shares of Hero MotoCorp Ltd. rose nearly 3.8% in intraday trade to Rs 2,784.8 apiece as analysts maintained their ratings on the stock post the September quarter numbers

Hero MotoCorp Q2FY22 (Standalone, QoQ)

• Revenue up 56% at Rs 8,543.4 crore Vs Rs 5,487 crore (BBG estimate: Rs 8,037.5 crore)

• Net Profit at Rs 794 crore Vs Rs 365 crore (BBG estimate: Rs 690 crore)

• Ebitda at Rs 1,156 crore Vs 515 crore (BBG estimate: Rs 904 crore)

• Margins at 13.5% Vs 9.4% (BBG estimate: 11.2%)

Of the 48 analysts tracking the company, 28 maintained 'buy', 15 maintained 'hold' and five maintained 'sell' recommendations> The overall consensus price of analysts tracked by Bloomberg implied an upside of 14%

Nomura

• Maintains 'neutral' with the target price slashed to Rs 2,981 from Rs 3,171, an implied return of 11.10%

• Pickup in economic cycle and buoyant rural crop cycle should drive demand.

• Urban demand is recovering while rural recovery is still awaited.

• Given rising prices and high fuel costs, demand for mass segments likely to come under pressure.

• Believe that ICE 2W scooters sales may have peaked in FY19.

• Execution in EVs will be the key growth driver.

• Lower our volume estimates by 13%.

• Estimate FY22-24F EBITDA margins at 12.3%/13.6%/13.6%.

• Lower our target P.E to 13x to factor in rising risk to growth from EVs.

• Believe current valuation is in the fair value zone.

ICICI Securities

• Maintains 'add' with the target price revised downwards to Rs 2,964 from Rs 2,965, an implied return of 10.47%

• Input cost pressures were managed through price hikes by the company and LEAP savings to contain gross margin contraction.

• Company continuing to witness demand pressure in entry level due to delayed monsoon and consumer sentiment recovery amid weak affordability is likely to be dealyed.

• Strategic partnerships in EVs to augment the company's EV product portfolio.

• Rupee bond traders will weigh inflation data which showed a faster acceleration in consumer prices than forecast. Traders also await wholesale inflation and October trade data.

• India Oct. Consumer Prices Rise 4.48% Y/y, Est. +4.41%

• India Sept. Industrial Production Rises 3.1% Y/y, Est. +4.8%

• Global funds buy net Rs 511 crore of India stocks Friday: NSE

• They bought Rs 116 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 146 crore of corporate debt

• State-run banks bought Rs 923 crore of sovereign bonds on Nov. 12: CCIL data. Foreign banks sold Rs 75.93 crore of bonds

Source: Bloomberg

• SJS Enterprises’ pre-market discovery price at Rs 540 per share, compared to its IPO price of Rs 542.

• The company’s IPO was subscribed 1.59 times.

Source: Bloomberg

Shares of Oil & Natural Gas Corp Ltd. rose 4.9% in intraday trade, the biggest in five weeks, to Rs 162.25 apiece as analysts raised target post September quarter numbers

ONGC Q2FY22 (Standalone, QoQ)

• Revenue up 5.8% at Rs 24,353.61 crore Vs Rs 23,021.64 crore (BBG estimate: Rs 25,265 crore)

• Net profit at Rs 18,347.73 crore Vs Rs 4,334.75 crore (BBG estimate: Rs 6,585.2 crore)

• Ebitda up 13.9% at Rs 12,527.53 crore Vs Rs 11,001.78 crore (BBG estimate: Rs 13,519.5 crore)

• Margins at 51.4% Vs 47.8% (BBG estimate: 53.5%)

• Declared an interim dividend of Rs 5.50 per share

Of the 28 analysts tracking the company, 21 maintained 'buy', three maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 9.6%.

Motilal Oswal

• Maintains 'buy' recommendation with the target price raised to Rs 195 to Rs 190; an implied upside of 26.09%

• Oil and gas production declined in H1 due to restrictive conditions creaated by cyclone Tauktae as well as Covid.

• Gas production from the KG Basis continues to be delayed as international travel restrictions adversely affects logistics.

• Management has revised oil and gas guidance for FY22E downwards.

• Maintains stance on normalisation of brent prices by the end of FY22.

• Expectation of severe winter, supply constraints, low inventory leading to gas price trading at multi-year highs.

• ONGC's gas production likely to clock in a CAGR of 7% over FY21-24E, with efforts to arrest decline in oil production.

Emkay

• Maintains 'buy' recommendation with the target price raised to Rs 185 from Rs 150 earlier.

• Company does not believe that higher gas prices would not be allowed next fiscal.

• Cyclone Tauktae impact offshore as well as onshore projects.

• Expect the company to witness a robuse FY23.

• Key Downside Risks: Adverse oil/gas prices, adverse policies, cost/capex overrruns and significant dry holes

• PolicyBazaar’s pre-market discovery price at Rs 1,150 per share, compared to its IPO price of Rs 980.

• The company’s IPO was subscribed 16.59 times.

Source: Bloomberg

India's stock benchmarks rose, aided by gains in banking, consumer durables and power stocks, as positive global cues, as investors await key macroeconomic data from China.

The S&P BSE Sensex rose 0.52% as it reclaimed 61,000 mark in intraday trade for the first time since October 28. The NSE Nifty 50 also advanced by similar magnitude to 18,197.55. HDFC Bank Ltd. contributed the most to the index gain, increasing 0.8%. Oil & Natural Gas Corp. had the largest increase, rising 4.2%. In early trading, 37 of 50 shares rose, while 13 fell.

The broader markets almost mirrored their larger peers with the S&P BSE Midcap adding over 0.4% and S&P BSE Smallcap gaining 0.2%. Barring S&P BSE Telecom index, all the other 18 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Oil and Gas, S&P BSE Healthcare and S&P BSE Bankex gainng 1%.

The market breadth is skewed in favour of bulls. About 1,561 stocks advanced, 1,112 declined and 142 remained unchanged.

• Berger Paints raised to 'reduce' from 'sell' at Spark Capital Advisors; price target: Rs 760

• Bharat Forge raised to 'buy' from 'add' at Spark Capital Advisors; price target: Rs 910

• Tata Power cut to 'equal-weight' from 'overweight' at Morgan Stanley; price target: Rs 217

Source: Bloomberg

• Camlin Fine Sciences cut to 'accumulate' from 'buy' at Nirmal Bang; price target: Rs 200

• United Spirits cut to 'neutral' from 'buy' at Motilal Oswal Securities; price target: Rs 1,025

• Teamlease cut to 'add' from 'buy' at Spark Capital Advisors; price target: Rs 4,900

Source: Bloomberg