Sensex, Nifty Log Biggest Single Day Gain In Over Two Months

India's stock benchmarks posted the biggest single day gains since September 23, 2021, aided by gains in banking, metal, realty and auto stocks, as concerns over the severity of omicron strain receded.

The S&P BSE Sensex rose 1.56% to 57,633.65. The 30-stock gauge rose over 1,150 points in intraday trade to hit an intraday high of 57,905.63. This is the most the Sensex has risen in nearly 10 weeks.

The NSE Nifty also rose by similar magnitude to close at 17,176.70.

ICICI Bank Ltd. contributed the most to the index gain, increasing 3.5%. Hindalco Industries Ltd. had the largest increase, rising 5.0%. Today, 45 of 50 shares rose, while 5 fell.

The broader indices almost mirrored their larger peers with the S&P BSE MidCap gaining 1.3% and S&P BSE SmallCap adding 1.15%. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal rising over 3% and S&P BSE Realty, Bankex, Finance and Basi Materials gaining over 2%.

The market breadth was skewed in the favour of bulls. About 2,337 stocks advanced, 943 declined and 114 remained unchanged.

"The rally was backed by a sharp upsurge in banking and metal stocks, which had taken a severe hammering in recent sessions. Post reversal formation, the Nifty has formed a promising bullish candle. On intraday charts, the index has also formed a higher bottom formation which indicates a short-term uptrend", Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. wrote in the note and added that the uptrend wave could continue in the near future but due to overstretched intraday momentum, the market may consolidate within the range of 17,075-17,280 price.

Goldman Sachs raised the target price of Reliance Industries Ltd. to Rs 3,185 apiece, an implied return of 33.21% even as it reiterated the 'buy' recommendation on the stock.

Goldman Sachs identified the company's investment in new energy segment as possibly the third structural growth driver along retail and telecom media technologies business.

• Govt. says no plan to increase the period of LTCG from 1-year to 2-years for MFs and equities.

• It also has no plans to abolish LTCG tax.

Govt. discloses revenue from Long-term Capital Gains from securities

• Assessment year 2018-19 (FY18): Rs 1222.24 crore

• Assessment year 2019-20 (FY19): Rs 3460.34 crore

• Assessment year 2020-21 (FY20): Rs 5311.87 crore

The Madras High Court has ordered for winding up of SpiceJet Limited on grounds that it failed to clear its debt owed to Credit Suisse AG.

The order by the single judge bench of Justice R Subramanian directed the official liquidator to takeover the assets of the company for liquidation but granted a three week stay at the request of the company to file an appeal against the order.

Dilip Buildcon has emerged L-1 bidder in tender floated by South Eastern Coalfields Ltd. (SECL), for removal of over burden in Madhya Pradesh.

The project has a contract value of Rs 2,683.02 crore (including GST) and a contract period of 1,795 days. The over burden removal quantity of the project stands at 236.183 million BCM.

Shares of NHPC Ltd. rose for the sixth consecutive session, on track for the longest winning streak since the period ended December 1, 2020.

NHPC's stock added 11% during the streak compared to S&P BSE Sensex index which rose 1.1%.

Nestle India Ltd.'s proposal towards production-linked scheme with respect to processed fruits and vegetables has been approved by the government. In an exchange filing, the company said that the PLI scheme for the food processing sector will help both the farmers and food processing industries.

Source: Exchange Filing

Shares of AurionPro Solutions Ltd. rose nearly 5% in intraday trade to Rs 276.9 apiece after bagging Rs 140 crore project from SBI as solution provider for Kanpur Metro Project. The project under Uttar Pradesh Metro Rail Corp. Ltd. pertains to the development of automatic fare collection system.

The scope of the project, valued nearly Rs 140 crore, includes implementation of automatic fare collection system and support for 10 years post the completion of the project.

Source: Exchange Filing

• Infosys Ltd. announced strategic collaboration with Financial Times. As digital innovation partner for FT, Infosys will utilise digital innovation to support creative and data-led storytelling experiences for the readers.

• The two companies will work together in 2022 on climate change-related simulation. The two companies also planned to develop a crossword app.

Source: Exchange Filing

Bloomberg Exclusive

• India is considering appointing its capital markets regulator to oversee cryptocurrencies

• Government likely to give crypto holders a deadline to declare their assets and meet any new rules.

• Bill is likely to use the term 'cryptoassets' instead of 'cryptocurrencies'

• Any violators could be fined as much as Rs 20 crore or imprisoned for 1.5 years, according to the proposals.

• Government may also consider prescribing minimum threshold for investing in crypto assets.

Source: People with knowledge of the matter.

India's stock benchmarks advanced, aided by gains in banking, metal and auto stocks, amid positive cues from global markets as concerns over the severity of omicron strain receded.

The S&P BSE Sensex rose 1.70% to 57,713.66. The NSE Nifty50 also advanced by similar magnitude to 17,188.40.

The broader indices almost mirrored their larger peers with S&P BSE MidCap and S&P BSE SmallCap adding over 1%. All the 19 sectoral indices compiled by the BSE Ltd. advanced with S&P BSE Metal, Bankex and Finance rising over 2%.

The market breadth was skewed in the favour of bulls. About 2,309 stocks advanced, 887 declined and 110 remained unchanged.

Kotak Mahindra Bank Ltd. will consider the proposal for seeking the consent of board for issuance of unsecured, redeemable, non-convertible debentures/bonds/other debt securities, on private placement, in one or more tranches during FY2022-23, to raise funds, the company said in an exchange filing.

• Filling of the details in Air Suvidha portal have been made compulsory for all international passengers arriving in India.

• International passengers mandated to declare their current health status prior to boarding on the portal

• Al applications from 'at risk' countries are marked differently from the rest.

• Over 1 crore passengers have benefitted from the Air Suvidha portal since August 2020.

Source: Ministry of Civil Aviation

• Indian bonds are lower as crude prices and U.S. yields advance. Traders are awaiting the outcome of the RBI’s policy meeting on Wednesday.

• Omicron seen slowing India’s policy normalization path: Guide

• 10-year yields up 1bp to 6.37%; 5-year yield up 1bp to 5.70%

• USD/INR down 0.1% to 75.34, snapping three days of gains

Source: Bloomberg

• Transfer of capital assets from Air India Ltd. to Air India Assets Holding Ltd. not to be considered as 'transfer' for determining capital gains tax.

• Several other tax exemptions also provided.

Source: Finance Ministry

RateGain Travel Technologies Ltd., a software-as-a-service company in the hospitality and travel industry, launched its three-day initial public offering on Tuesday. The retail portion of the offer was fully subscribed within in the first hour of opening.

Subscription Details: Day 1

The IPO was subscribed 0.34 times as of 3 p.m. on Dec. 7.

• Institutional investors: 0 times.

• Non-institutional investors: 0.01 times.

• Retail investors: 1.85 times.

• Employees: 0.07 times.

• Yields rose across the India sovereign yield curve in Tuesday morning trading.

• The 5-year yield rose 1bp to 5.7%

• The 10-year yield rose 1.5bps to 6.374%

• The 14-year yield rose 0.8bps to 6.756%

• The 5-year-10-year yield spread was 67.4bps, vs previous close 67bps

Source: Bloomberg

GHCL Ltd. entered into a business transfer agreement to divest its home textiles business to Indo Count Industries Ltd., the company said in an exchange filing.

The divestment pertains only to the transfer of the home textiles division while the spinning business will be retained by GHCL and demerged into a separate entity, GHCL Textiles Ltd.

Total sale consideration for the divestment stands at Rs 596 crore. The divestment process is intended to be concluded by September 2022.

GHCL aims to sharpen growth focus in chemicals and spinning businesses following this divestment. The entire divestment process is in-line with the company's objective of unlocking value for shareholders.

Shares of Tanla Platforms Ltd. hit 5% upper circuit after the company signed a deal with Vodafone Idea Ltd. in which Tanla will be the exclusive provider of solutions to encrypt and enhance performance for international messaging traffic on the Vi network.

The partnership is centered on cloud-based platform 'Wisely', co-developed with Microsoft.

Wisely is expected to go live in Q4FY2021-2022. The launch follows the success of largest implementation of block chain use case processing - TRUBLOQ, which could process nearly 35,000 crore transactions per year.

The Wisely platform is expected to deliver manifold growth of RoI and enhance experience for million of mobile users in India, Tanla Platforms said in an exchange filing.

Both the two analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 14.8%.

Trading volume on the stock was 1.7 times the 30-day average volume, for this time of the day.

Shares of Intellect Design Arena Ltd. rose 2.6% in intraday trade to Rs 662.1 apiece after the company's digital wealth management suite was chosen by State Bank of India for transforming its digital wealth management.

SBI has prioritised wealth management business and is focussing on offering customers the flexibility to invest, transact and view their portfolio through digital channels.

Of the four analysts tracking the company, three maintained 'buy' and one maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 16.2%.

• ICICI Bank Ltd. has 3.43 million shares change hands in two bunch trades.

• Details of buyers and sellers are not immediately known

Source: Bloomberg

Pharmacy chain Medplus Health Services Ltd. has set a price range of Rs 780-796 per share for its initial public offering that aims to raise as much as Rs 1,398 crore ($186 million), according to an advertisement in the Financial Express newspaper Tuesday.

• The Hyderabad-based company, which counts Warburg Pincus among its investors, plan to raise as much as Rs 600 crore selling new shares; its shareholders plan to sell up to Rs 798 crore worth of shares in the IPO

• Among selling shareholders, Premji Invest’s PI Opportunities Fund is seeking to sell up to Rs 623 crore of shares, Natco Pharma is selling Rs 100 crore worth of shares

• Investors can bid for minimum 18 shares of face value 2 rupees each in the sale, which opens Dec. 13 and closes Dec. 15

• Axis Capital, Credit Suisse, Edelweiss Financial and Nomura are managing the IPO

Source: Bloomberg

Shares of InterGlobe Aviation Ltd. rose over 5%, the biggest intraday gain in over three weeks, to Rs 1,955 apiece after the company received a joint requisition from IGE Group and RG Group, who collectively hold 74.44% of the paid-up equity share capital of the Company, to convene an Extraordinary General Meeting for removing the Transfer Restriction Articles from the Articles of Association of the Company. EGM will be held on Dec. 30. This is the culmination of two-year old legal battle between the two promoters on several issues including share transfer restrictions to related party transactions.

Of the 24 analysts tracking the company, 11 maintained 'buy', four maintained 'hold' and nine maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 6.1%. Trading volume was 2.3 times the 30-day average volume, for this time of the day.

India's stock benchmarks opened higher, aided by gains in auto, banking, metal and information technology stocks, amid a rebound in global markets aided by receding concerns about the severity of the omicron virus variant.

The S&P BSE Sensex rose 0.82% to 57,211.64. The NSE Nifty 50 advanced by similar magnitude to 17,041.

The broader indices almost mirrored their larger peers with the S&P BSE MidCap rising 0.73% and S&P BSE SmallCap adding 1%. All the 19 sectoral indices compiled by the BSE Ltd. advanced with S&P BSE Auto and S&P BSE Metal index gaining over 1%.

The market breadth was skewed in the favour of bulls. About 1,898 stocks advanced, 483 declined and 69 remained unchanged.

Tanla Platforms Ltd. and Vodafone Idea Ltd. sign a deal in which Tanla will be the exclusive provider of solutions to encrypt and enhance performance for international messaging traffic on the Vi network.

The partnership is centered on cloud-based platform 'Wisely', co-developed with Microsoft. Wisely is expected to go live in Q4FY2021-2022. The launch follows the success of largest implementation of block chain use case processing - TRUBLOQ, which could process nearly 35,000 crore transactions per year.

The Wisely platform is expected to deliver manifold growth of RoI and enhance experience for million of mobile users in India, Tanla Platforms said in an exchange filing.

Mumbai-based Metro Brands Ltd. has set a price range of Rs 485-500 per share for its initial public offering that could raise as much as Rs 1,370 crore ($182 million), according to an advertisement in the Financial Express newspaper Tuesday.

• The company plans to raise up to Rs 295 crore selling new shares, while it founders and existing shareholders plan to sell as many as 21.45 million shares in the IPO

• Investors can bid for minimum 30 shares of face value 5 rupees each in the sale, which opens Dec. 10 and closes Dec. 14

• Rekha Jhunjhunwala owns nearly 15% stake in Metro via three family trusts, according to its red herring prospectus

• The company plans to utilize proceeds for opening new stores under its Metro, Mochi, Walkway and Crocs brands

• Axis Capital, Ambit Pvt., DAM Capital, Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors are managing the issue

Source: Bloomberg

Indian bonds may open lower as crude prices and U.S. yields advance. Traders are awaiting the outcome of RBI’s policy meeting on Wednesday.

• USD/INR rises 0.3% to 75.4238 on Monday

• 10-year yields fell 1bps to 6.36% on Monday

• RBI to hold Rs 2 lakh crore 7-day reverse repo auction on Tuesday

• Global funds sell net Rs 3,360 crore of India stocks Monday: NSE

• They sold Rs 39 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 25 crore of corporate debt

• State-run banks bought Rs 1,080 crore of sovereign bonds on Dec. 6: CCIL data. Foreign banks sold Rs 1,070 crore of bonds

• Brigade Enterprises rated 'new add' at Axis Capital Ltd.; price target: Rs 515

• Angel One rated 'new buy' at Investec; price target: Rs 1650

• ICICI Securities rated 'new buy' at Investec; price target: Rs 1,025

Source: Bloomberg

Private lenders have emerged as top contenders to acquire Citi India's retail assets, The Economic Times reported, citing people familiar with the matter.

• The potential all-cash transaction will likely value assets at less that $2 billion, according to the report.

• The two banks are conducting further due diligence, sine all details of the book weren't revealed in the initial rounds.

• Kotak Mahindra Bank's bid may have gone further than that of Axis, which has a large retail book and credit card base.

• IndusInd Bank is said to be out of the race.

Asian healthcare stocks dropped after Moderna tumbled more than 13% as investors reacted to reports suggesting cases of the Omicron variant have been relatively mild.

• The U.S. Centers for Disease Control and Prevention signaled hope that existing vaccines could work on the virus variant, while the country’s virus expert, Anthony Fauci, told CNN the severity of illness may not be as bad as feared.

• Moderna’s drop dragged U.S. biotech stocks lower.

• Healthcare is one of the worst-performing sectors in the MSCI Asia Pacific Index on Tuesday.

• In Focus: Dr. Reddy's, Cadila Healthcare, Pfizer Ltd.