Sensex, Nifty Decline For Second Session Ahead Of FOMC Outcome

Indian equity benchmarks closed lower for the second consecutive session, dragged by telecom, banking, auto, consumer durables stocks. Focus shifts to two-day FOMC meeting which begins later today, as taper announcement is expected.

The S&P BSE Sensex index fell 0.43% to 59,771.92. The NSE Nifty 50 Index declined by similar magnitude to 17,829.20. HDFC Bank Ltd. contributed the most to the index decline, decreasing 1.6%. Sun Pharmaceutical Industries Ltd. had the largest drop, falling 3.4%. Today, 27 of 50 shares fell, while 23 rose.

The broader indexes almost mirrored their larger peers with the S&P BSE MidCap index and the S&P BSE SmallCap index shedding over 0.2%. Ten of the 19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Telecom, Bankex, Auto, Consumer Durables indexes shedding over 1%

The market breadth was neither skewed in favour of bulls nor bears. About 1,596 stocks advanced, 1,643 declined and 162 remained unchanged.

Hindalco Industries Ltd. announced acquisition of 100% equity stake in Ryker Base Pvt. Ltd., a wholly owned subsidiary of Polycab India Ltd.

• The acquisition will be through Hindalco's subsidiary Renuka Investments & Finance Ltd., the company said in a exchange filing.

• The purchase consideration for the equity stake is based on an enterprise value of Rs 323 crore.

• Ryker's 2.25 lakh tonne plant to manufacture cast and rolled copper wire rods is located at Waghodia (Gujarat). The acquisition is expected to strengthen Hindalco's copper rod manufacturing capacity.

• Of the 29 analysts tracking the company, 28 maintained 'buy' and one maintained 'sell' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 18.3%

Aditya Birla Fashion and Retail Ltd. reported net income for the second quarter that beat the average analyst estimate.

September Quarter Results (Consolidated, QoQ)

• Net profit at Rs 5.09 crore vs loss of Rs 352.15 crore (Bloomberg Consensus Estimate: Loss of Rs 33.4 crore)

• Revenue at Rs Rs 2,054.34 crore vs Rs 811.95 crore (Estimate: 1,960 crore)

• Total costs at Rs 2,069.96 crore vs Rs 1,303.67 crore

• Other income at Rs 25.19 crore vs Rs 24.34 crore

Of the 26 analysts tracking the company, 22 maintained 'buy', three maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 3.3%

• Oberoi Realty cut to 'add' from 'buy' at YES Reseach; Price target: Rs 1,001.

• Dabur India raised to 'buy' from 'reduce' at Dolat Capital; Price target: Rs 707.

• Jyothy Labs cut to 'accumulate' from 'buy' at Elara Securities; Price target: Rs 185.

Source: Bloomberg

Shares of Mazagon Dock Shipbuilders Ltd. rose 11.59% in intraday trade to Rs 310 apiece. The stock has risen for third consecutive session after the company delivered first of the four stealth-guided missile destroyer ships for the Indian navy.

• This is the biggest intraday gain for the stock since its trading debut on October 2020.

• Over the last three sessions, the stock rose nearly 17%.

• All the four analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 19.9%.

• The relative strength index on the stock was 73, indicating that it may be overbought.

• Trading volume of the stock was 17.3 times the 30-day average volume, for this time of the day.

Infosys Ltd. announced strategic collaboration with Shell Global Solutions International BV (Shell) as commercialization partner of the "Shell Inventory Optimizer" solution.

Shell and Infosys will launch Shell Inventory Optimizer as the first product offered to its energy customers.

The solution is expected reduce time and labour required to complete maintenance operations and aids cost efficiency.

Source: Exchange Filing

Shares of Precision Wires India Ltd. rose nearly 7% in intraday trade to Rs 315.95 apiece after the company approved the stock split of one equity share of Rs 5 each to five equity shares of Rs 1 each. The stock split is aimed at enhancing liquidity in the capital market and widening shareholder base by making shares affordable to small investors.

The company also reported sequential growth in net profit and revenue in the September quarter.

September Quarter Results (Standalone, QoQ)

• Net profit at Rs 14.97 crore vs Rs 11.57 crore

• Revenue at Rs 706.65 crore vs Rs 530.02 crore

• Total costs at Rs 688.11 crore vs Rs 516.43 crore

• Other income at Rs 2.20 crore vs Rs 1.35 crore

Trading volume on the stock was 4.2 times the 30-day average trading volume, for this time of the day.

• RailTel Corporation of India Ltd. received work order from Konkan Railway Corporation Ltd. worth Rs 86.90 crore. The order pertained to the design, supply, installation, wiring, testing and commissioning of the Integrated Commission system and is scheduled to be completed with 28 months.

Source: Exchange Filing

Shares of RailTel Corporation of India rose over 1.5% to Rs 124 in intraday trade.

India's stock benchmarks declined, dragged by consumer durables and fmcg stocks, after fluctuating between gains and losses for most of the trading session so far. Focus shifts to Federal Reserve policy decision due later today.

The S&P BSE Sensex shed 0.18% to 59,923.07. The NSE Nifty 50 index also declined by similar magnitude to 17,868.30. ICICI Bank Ltd. contributed the most to the index decline, decreasing 1.2%. Sun Pharmaceutical Industries Ltd. had the largest drop, falling 2.9%. In midday trading, 26 of 50 shares fell, while 24 rose.

The broader indexes almost mirrored their larger peers with the S&P BSE MidCap index little changed and the S&P BSE SmallCap index falling 0.1%. Ten of the 19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Consumer Durables index shedding nearly 1%. On the flipside, S&P BSE Capital Goods and S&P BSE Realty indexes gained in the vicinity of 2%

The market breadth was skewed in favour of bulls. About 1,619 stocks advanced, 1,509 declined and 161 remained unchanged.

Shares of Apollo Micro Systems Ltd. rose over 3% in intraday trade to Rs 120.5 apiece after the company secured strategic orders worth Rs 6.88 crore

Source: Exchange Filing

• Indian Oil Corporation Ltd. to set up 10,000 EV charging stations in three years.

• IOC to set up 2,000 EV charging stations in 12 months

SM Vaidya, Chairman, Indian Oil Corporation

• Tata Consultancy Services Ltd. and the Royal Academy of Engineering of Spain have partnered to develop a new digital framework for providing online access to the latest learning support services.

• TCS will build 'Forum for the Digitalization of Higher Education' (FDHE), a framework for Spanish and worldwide universities to digitalise all touchpoints throughout the student lifecycle.

Source: Exchange Filing

• India’s rupee was the sole gainer among emerging Asian currencies, helped by inflows from foreign investors seeking to participate in an IPO boom in India’s stock market as well as strong PMI data for October. Bonds traded little changed.

• USD/INR fell 0.1% to 74.6200 on Wednesday

• 10-year yields steady at 6.36%

Source: Bloomberg

• Shares of Larsen & Toubro Ltd. rose 4.79% in intraday trade, the biggest intraday gain in two weeks, to Rs 1,902.6 apiece.

• Trading volume was triple the 20-day average volume, for this time of the day.

• Larsen & Toubro trades at 27 times the estimated earnings per share for the coming year.

• Analysts have 40 'buy', one 'hold' and one 'sell' recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 14.4%.

• Shares of UPL Ltd. rose over 5% in intraday trade, the biggest single-day gain in over five months, to Rs 756.5 apiece.

• Trading volume on the stock was double the 20-day average for this time of the day.

• UPL trades at 15 times its estimated earnings per share for the coming year.

• Analysts have 27 'buy', four 'hold' and one 'sell' recommendations on the stock.

• Shares of UPL crossed above the 50-day simple moving average, indicating potential upward price momentum.

• UPL reported net income for the second quarter that missed the average analyst estmimate on Friday.

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

• The 1-year yield was little changed at 4.219%

• The 9-year yield remained unchanged at 6.33%

• The 10-year yield was little changed at 6.361%

• The 2-year-10-year yield spread was 190.5bps, vs previous close 190.4bps

Source: Bloomberg

Shares of Hindustan Petroleum Corp Ltd. rose 4.47% in intraday trade to Rs 317 apiece as analysts raised target prices following the company's September quarter earnings, which were reported during market hours Tuesday.

ICICI Securities

• Maintains 'hold' with the target price raised to Rs 310 from Rs 271, implied return of -1.54%

• Company's refinery expansions and upgradation stabilised quickly.

• Sustenance of GRM recovery is crucial for the company's outlook.

• Raises FY22E EPS by 41% mainly on factoring H1 inventory gains.

• Raises FY23E EPS by 14% on upgrade in GRM to $4.5 per barrel.

• Raises FY23E EBITDA-based target price by 14% to Rs 310.

• Crude throughput and GRM was hit by expansion at Mumbai refinery, resulting in rise in fuel and losses.

• Recent Singapore GRM surge bodes well for FY22E outlook

Prabhudas Lilladher

• Maintains 'buy' with the target price raised to Rs 445 from Rs 404 earlier, implied return of 46.65%.

• Plant shutdown at Mumbai and Vizag refinery impact Q2 performance.

• Increase FY22-24E estimates by 5-11% to factor in higher GRMs led by pickup in global economic activity and gas to oil shift due to high prices.

• OMCs well placed to benefit from economic recovery, as their refining and marketing earnings will improve.

Of the 36 analysts tracking the company, 29 maintained 'buy' and seven maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 15.8%.

• Composite PMI shows strongest growth in nearly a decade.

• India Composite PMI at 58.7 in October from 55.3 in September.

Source: IHS Markit

• Union Bank of India raised to 'add' at Kotak Securities; Price target: Rs 56

• Minda Corporation cut to 'hold' at Edelweiss Capital; Price target: Rs 185

Source: Bloomberg

Rupee traders will assess both the size of inflows from foreign investors seeking to participate in an IPO boom in India’s stock market as well as October PMI data for October that provides an indication of the health of India’s economic recovery.

• USD/INR fell 0.3% to 74.6850 on Tuesday

• 10-year yields fell 3bps to 6.36% on Tuesday

• Global funds buy net Rs 245 crore of India stocks Tuesday

• They bought Rs 274 crore of sovereign bonds under limits available to foreign investors, and added Rs 295 crore of corporate debt

• State-run banks sold Rs 1,250 crore of sovereign bonds on Nov. 2: CCIL data. Foreign banks bought Rs 2,320 crore of bonds

Source: Bloomberg

Shares of eClerx Services Ltd. rose over 15% in intraday trade to a record Rs 2,470 apiece after the company reported net income and revenue above average analyst estimate in the September quarter, post market hours Tuesday.

eClerx Services Q2FY22 (Consolidated, QoQ)

• Revenue up 7.6% at Rs 523.25 crore Vs Rs 486.26 crore (Bloomberg Consensus Estimate: Rs 498 crore)

• Net profit up 9.5% at Rs 100.77 crore Vs Rs 92.04 crore (Bloomberg Consensus Estimate: Rs 95.87 crore)

• Total costs at Rs 388.85 crore vs Rs 374.21 crore

All the eight analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 15.4%.

Trading volume on the stock was 20.3 times the 30-day average volume for this time of the day.

Shares of eClerx Services crossed 50-day simple moving average, indicating potential upward price momentum.

Indian equity benchmarks opened higher, aided by gains in telecom, metal and information technology stocks, amid positive global cues. Focus shifts to Federal Reserve policy decision due later today, as investors await the contours and timeline of tapering of stimulus.

The S&P BSE Sensex rose 0.42% to 60,282.49. The NSE Nifty 50 advanced by a similar magnitude to 17,966.15. Reliance Industries Ltd. contributed the most to the index gain, increasing 0.6%. Tech Mahindra Ltd. had the largest increase, rising 2.2%. In early trading, 42 of 50 shares rose, while 8 fell.

The broader indexes almost mirrored their broader peers with the S&P BSE MidCap index and the S&P BSE SmallCap adding over 0.3%. Barring S&P BSE Consumer Durables index, all the other 18 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Metal index rising nearly 1%.

The market breadth was skewed in favour of bulls. About 1,618 stocks advanced, 720 declined and 100 remained unchanged.

• FSN E-Commerce Ventures Ltd., the entity that operates Indian beauty startup Nykaa, has priced its Indian initial public offering at Rs 1,125 per share, the top of a marketed range, according to terms of the deal obtained by Bloomberg News.

• The IPO comprises a primary issue of as much as Rs 630 crore and a secondary offering by shareholders of 42 million shares: terms

• The IPO raised about Rs 5,350 crore: terms

• The shares had been offered at Rs 1,085-1,125 apiece

• The proceeds will be used for investment in FSN Brands and/or Nykaa Fashion for funding the set-up of new retail stores; capital expenditure and investment in Nykaa E-Retail, FSN Brands and Nykaa Fashion for funding the set-up of new warehouses; repayment or prepayment of outstanding borrowings and general corporate purposes: terms

• The shares are expected to start trading on November 11

• Morgan Stanley and Kotak Mahindra are global coordinators and book running lead managers

Source: Bloomberg

• National Company Law Tribunal, New Delhi has approved the resolution plan submitted by Adani Power Ltd. for acquisition of Essar Power MP Ltd.

• Essar Power MP is undergoing insolvency resolution under IBC and own a 1,200 Mega Watt thermal power plant in Singrauli, Madhya Pradesh.

Source: Exchange Filing

• SRF rated 'new underperform' at Jefferies; Price target: Rs 1,890

• Navin Fluorine rated 'new buy' at Jefferies; Price target: Rs 3,840

• Sun Pharma raised to 'buy' at Nirmal Bang; Price target: Rs 939

Source: Bloomberg

• Cipla Ltd.'s wholly owned step down subsidiary InvaGen Pharmaceuticals Inc., USA received a notice of termination of the Stock Purchase and Merger Agreement' from Avenue Therapeutics Inc. InvaGen had earlier entered into the deal with Avenue Therapeutics, but the second stage of the deal could not completed within the agreed timelines.

• InvaGen is evaluating the notice from Avenue Therapeutics for further steps. Avenue Therapeutics specialises in the development and commercialisation of intravenous (IV) Tramadol.

Latent View Analytics Ltd. has set a price range of 190-197 rupees a share for its initial public offering that seeks to raise as much as Rs 600 crore ($80.3 million), according to an advertisement in the Financial Express newspaper Wednesday.

• The Chennai-based data analytics firm is looking to raise Rs 474 crore by selling new shares, while its founder and shareholders will sell Rs 126 crore worth of shares in the IPO

• Founder Adugudi Viswanathan Venkatraman is selling Rs 60.15 crore of shares; Ramesh Hariharan will sell Rs 35 crore of shares

• Investors can bid for minimum 76 shares of face value 1 rupee in the IPO, which will be open for subscriptions Nov. 10 to Nov. 12; anchor investors will bid on Nov. 9

• Axis Capital, ICICI Securities and Haitong Securities India are bookrunning manager for the issue

• Adani Ports and Special Economic Zone Ltd. reported cargo volume for October at 24.8 million metric tonnes.

• Hazira Port handled record liquid cargo volume of 0.49 million metric tonnes

• APSEZ handled cargo volume of 184.67 million metric tonnes during seven months of FY22 (including 18.01 MMT for Gangavaram Port), up 50% YoY

• Three new bulk rakes were added during the month taking the total bulk rakes to 21.

Source: Exchange Filing

• PNB Housing raised to 'overweight' from 'equal-weight' at Morgan Stanley; Price target: Rs 665

• Godrej Properties cut to 'hold' from 'buy' at Antique Stock Broking; Price target: Rs 2,109

• VRL Logistics raised to 'buy' from 'add' at Spark Capital Advisors; Price target: Rs 500

Source: Bloomberg