Sensex, Nifty Extend Gains For Second Session Aided By HDFC, Bajaj Twins

Indian equity benchmarks shrugged off a volatile start and advanced for the second consecutive session, aided by gains in consumer durables, information technology, fmcg, power, realty and oil and gas stocks.

The S&P BSE Sensex index rose 0.80% to 60,545.61. The is the highest close for the 30-stock gauge nearly two weeks. The NSE Nifty 50 Index advanced by similar magnitude to 18,068.55. This the first time Nifty 50 closed above 18,000 since October 27. Housing Development Finance Corp. contributed the most to the index gain, increasing 2.8%. Titan Co. had the largest increase, rising 4.3%. Today, 39 of 50 shares rose, while 11 fell.

The broader indexes almost mirrored their larger peers with the S&P BSE MidCap index adding 1.2% and the S&P BSE SmallCap index gaining nearly 0.8%. Barring S&P BSE Healthcare index, all the other 18 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Consumer Durables and S&P BSE Oil & Gas rising nearly 2.5%

The market breadth was skewed in favour of the bulls. About 1,819 stocks advanced, 1,540 declined and 191 remained unchanged.

"A solid rebound in Financial Services (excluding Private Banks), IT and metal stocks supported market rally today. Notably, cement stocks were in focus today mainly led by sustainability of sharp price hikes taken by cement companies in recent period and visible contraction in key input costs", Binod Modi wrote in a note. The Head - Strategy at Reliance Securities added "government’s effort to calm down high commodity prices by cutting excise duties in petrol and diesel augurs well, which will also aid RBI to keep interest rate at current range to support ongoing recovery."

Britannia Q2 FY22 (Consolidated, QoQ)

• Revenue up 6% at Rs 3607.37 crore Vs Rs 3403.46 crore

• Net profit down 1% to Rs 384.22 crore from Rs 389.55 crore

• EBITDA up 1% to Rs 558.33 crore Vs Rs 553.78 crore

• Margins at 15.5% Vs 16.3%

• Poonawalla Fincorp has 30.3 million shares change hands in three bunch trades.

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

Shares of Wockhardt Ltd. rose 7.62% in intraday trade to Rs 474 apiece after the company reported sequential growth in sales and net profit in the September quarter

Second Quarter Results (QoQ)

• Net profit at Rs 35 crore vs net loss of Rs 13 crore

• Sales at Rs 862 crore vs Rs 860 crore

• Ebitda at Rs 109 crore vs Rs 108 crore

• Ebitda margins at 12.7% vs 12.5%

Trading volume on the stock was 4 times the 30-day average volume for this time of the day.

Shares of Sundaram Finance Ltd. shed 1% to Rs 2,480.05 apiece after the company reported its September quarter numbers

Second Quarter Numbers

• Net income at Rs 210.65 crore vs Rs 191.99 crore YoY

• Revenue from operations Rs 1,021.82 crore vs Rs 992.96 crore YoY

• Total costs at Rs 746.71 crore vs Rs 744.03 crore YoY

• Other income at Rs 3.35 crore vs Rs 4.90 crore YoY

Of the seven analysts tracking the company, three maintained 'buy', two maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 3.9%

• Rupee gained past 74 to a dollar to its highest since September 28 amid inflows for share sales.

• USD/INR drops to as much as 73.9863, last seen September 28.

• Edelweiss Alternative Research: All the MSCI potential high conviction inclusion names hold strong chance to move from current midcap categorization to Large Cap categorisation

• Zomato will be for sure fresh entrant in Large cap category

Edelweiss Alternative Research Predictions

High Conviction

• Tata Power

• SRF

• Mphasis

• Godrej Properties

• Mindtree

• IRCTC

• Zomato

Two Stocks On Borderline For Exclusion From Standard Index

• Ipca Laboratories

• REC

MSCI will announce SAIR rejig on Friday. The adjustment will take place on November 30.

• New home loan rate to be effective from Nov 9 to Dec 10.

• New rate applicable for fresh home loans as well as balance transfers.

• Kotak Mahindra Bank was offering home loans at 6.5% between September 10 to November 8 for the festive season.

Source: Kotak Mahindra Bank statement

• India's market infrastructure institutions, including stock exchanges, clearing corporations and depositories finalized a plan to implement shorter trade settlement for some stocks from February 25,.

• The T+1 settlement cycle will be implemented in a phased manner and some stocks will have the T+1 settlement available from February 25.

Source: Statement from Exchanges, NSDL, CDSL, MSE

Motherson Sumi Systems Ltd. approved the issuance of rated, listed, unsecured, redeemable non-convertible debentures of face value of Rs 10 lakh each, for an aggregate principal amount of up to Rs 1,000 crore, on a private placement basis, to certain eligible investors , in one or more tranches.

Source: Exchange Filing

• Shares of Minda Corporation Ltd. rose for the ninth straight day, on track for the longest winning streak since Feb. 23, 2015.

• Minda has gained a total of 39% during the streak while the S&P BSE Sensex Index fell 0.7%.

• Relative strength index on the stock was 82, suggesting it may be overbought.

• Byju's received strong demand for its term loan from global investors like Blackstone, GIC, Fidelity.

• Byju's is more than doubling targeted size of its term loan B to $1.2 billion from $500 million earlier.

• Board of Byju's parent, Think & Learn Pvt approved the size and terms of the loan.

• Byju's, Blackstone, Fidelity and GIC did not immediately respond to emails.

Source: People Involved In The Deal

• Eicher Motors cut to 'hold' from 'accumulate' at Prabhudas Lilladher; price target: Rs 2,856

• Indian Bank cut to 'accumulate' from 'buy' at Quantum Securities; price target: Rs 208

• VRL Logistics raised to 'buy' from 'accumulate' at Elara Securities; price target: Rs 516

Source: Bloomberg

Shares of Karur Vysya Bank Ltd. advanced after the company reported YoY growth in net income in September quarter.

Second Quarter Results

• Net profit at Rs 165.45 crore vs Rs 114.89 crore YoY

• Gross NPA at 7.38% vs 7.97% QoQ

• Interest income at Rs 1,397.95 crore vs Rs 1,394.70 crore YoY

• Total costs at Rs 1,187.21 crore vs Rs 1,217.50 crore YoY

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 25.8%.

India's stock benchmarks advanced, aided by information technology, consumer durables, power and realty stocks after fluctuating between gains and losses for most of the trading session so far.

The S&P BSE Sensex added 0.25% to 60,219.92. The NSE Nifty 50 index also advanced by similar magnitude to 17,968.15. Housing Development Finance Corp. contributed the most to the index gain, increasing 2.1%. UltraTech Cement Ltd. had the largest increase, rising 4.4%. In midday trading, 33 of 50 shares rose, while 17 fell.

The broader indexes outperformed their larger peers with the S&P BSE MidCap adding over 0.75% and the S&P BSE SmallCap index gaining 0.5%. Sixteen of the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Consumer Durables index rising over 2%.

The market breadth was skewed neither in favour of bulls nor bears. About 1,674 stocks advanced, 1,545 declined and 206 remained unchanged.

• India bonds rose on optimism that inflation would slow after the federal government cut excise duty on gasoline and diesel. The rupee advanced for a sixth day as India’s biggest initial share sale opened for subscription.

• 10-year yields dropped 4bps to 6.32%; 5-year yields fell 4bps to 5.69%

• USD/INR dropped 0.4% to 74.1837

• Twenty-two Indian provinces cut taxes on gasoline and diesel, taking a cue from the federal government’s decision to pare levies on retail fuels to provide relief to consumers from record pump prices

Source: Bloomberg

Shares of Pfizer India Ltd. rose over 8%, the biggest intraday gain in nearly a year, to Rs 5,421 apiece.

The company reported its quarterly numbers post market hours Wednesday

Pfizer Q2FY22 (YoY)

• Revenue up 7% at Rs 636.26 crore Vs Rs 595.41 crore

• Net profit up 9% at Rs 142.95 crore Vs Rs 131.37 crore

• Ebitda down 7% at Rs 189.37 crore Vs Rs 203.32 crore

• Margins at 29.8% Vs 34.1%

The advance comes after Pfizer publishing data that showed its Covid-19 pill reduced hospitalizations and deaths in high-risk patients by 89%.

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

Trading volume on the stock was 22.3 times the 30-day average volume for this time of the day.

• Future Retail appeals lower court refusal to lift bar on Reliance deal

• Future Retail has filed a new petition in the Supreme Court challenging the Delhi High Court’s refusal to allow steps for the company’s asset sale deal with Reliance Industries, according to updates on the top court’s website.

• Future Retail filed the petition against a Amazon.com Inc. group firm on Monday morning; the top court has yet to give a date for hearing the petition

• The top court is scheduled to hear earlier petitions by Future Group firms and Amazon on Nov. 11

Shares of Asian companies related to infrastructure rose after the House on Friday passed the biggest U.S. infrastructure package in decades, unleashing $550 billion of fresh spending on roads, bridges, public transit and other projects in coming years

Indian companies in focus: Cummins India rose nearly 2%, Bharat Forge gained over 2.5%

Source: Bloomberg

• Yields fell across the India sovereign yield curve in Monday morning trading.

• The 5-year yield fell 4.1bps to 5.686%

• The 10-year yield fell 4bps to 6.318%

• The 20-year yield remained unchanged at 6.982%

• The 5-year-10-year yield spread was 63.2bps, vs previous close 63.1bps

Source: Bloomberg

• The construction arm of Larsen & Toubro Ltd. secured significant orders for its business in India. The company defines significant orders to be of the value of Rs 1,000 crore-Rs 2,500 crore.

• The metallurgical and material handling business has been awarded an EPC order of 12 MTPA dry circuit systems for a screening plant from NMDC Ltd, in Chhattisgarh.

• Building and Factories business won a prestigious order from DRDO to construct their flight control system facility at Bengaluru.

Source: Exchange Filing.

Shares of Larsen & Toubro rose 2.35% in intraday trade to Rs 1,953.9 apiece.

Of the 42 analysts tracking the company, 40 maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendations.

Shares of Muthoot Finance Ltd. rose nearly 7% in intraday trade, the most in over five months, to Rs 1,636.85 apiece after the company reported sequential growth in interest income and net profit in the September quarter, post market hours Thursday.

Muthoot Finance (Consolidated, QoQ)

• Interest income up 2.9% at Rs 3,003.3 crore

• Profit after tax up 2.5% at Rs 1,002.9 crore

• Gross loans under management up 5% at Rs 55,146.8 crore

• Earnings per share at Rs 24.98 versus Rs 24.37

Of the 20 analysts tracking the company, 15 maintained 'buy', three maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 9%.

Trading volume on the stock was 5.7 times the 30-day average volume for this time of the day.

• Indian bonds advanced after the government cut the excise tax on retail fuel, boosting optimism inflation pressures will ease.

• Yield on the benchmark 10-year bond drops 3bps to 6.33%

• Five-year yields decline 5bps to 5.68%

Makers of Covid-19 vaccines and treatments slumped in Asia after Pfizer Inc. published a positive result from its Covid-19 pill, which it said reduced hospitalizations and deaths in high-risk patients by 89%.

Indian equity benchmarks opened higher as they extended their rally from the mahurat trading session on Thursday, aided by gains in capital goods, telecom and consumer durables stocks, amid positive global cues.

The S&P BSE Sensex rose 0.18% to 60,174.69. The NSE Nifty 50 advanced by a similar magnitude to 17,941.60.

The broader indexes almost mirrored their broader peers with the S&P BSE MidCap index gaining 0.3% and the S&P BSE SmallCap little changed. Sixteen of the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Capital Goods index rising over 1.4%.

The market breadth was skewed neither in favour of bulls nor bears. About 1,222 stocks advanced, 1,316 declined and 171 remained unchanged.

• Inox Wind Ltd. has secured an order for a 150 Mega Watt wind power project from NTPC Renewable Energy Ltd, a wholly owned subsidiary of NTPC Ltd. This project will be commissioned in Gujarat by April 2023 and is expected to help NTPC achieve its target of 60 Giga Watt renewable energy capacity by 2032.

• This is a repeat order from NTPC and the largest PSU order for Inox Wind in recent times.

Source: Exchange Filing

• Indian government has placed a purchase order for 10 million doses of Zydus Cadila's Covid-19 vaccine, the Press Trust of India reported citing officials it did not name.

• The three-dose shot called ZyCoV-D is the first vaccine the government has approved to inoculate citizens of age 12 years or more, but initially it may be given only to adults because of limited production capacity, according to the report

• Eicher Motors raised to 'add' at ICICI Securities; price target: Rs 2,795

• Divi's Labs cut to 'reduce' at ICICI Securities; price target: Rs 4,628

• Bharti Airtel cut to 'add' at Spark Capital Advisors

Source: Bloomberg

Rupee traders will watch for inflows as India’s biggest initial share sale opens for subscription. Bond traders are likely to weigh the impact of a cut in excise duty on gasoline and diesel on inflation and government finances.

• The float by One97 Communications, the parent of Paytm, is priced in a band of Rs 2,080-2,150 and aims to raise as much as Rs 18,300 crore ($2.5 billion); offer closes Nov. 10

• USD/INR fell 0.3% to 74.4600 on Wednesday

• Onshore markets were shut Thursday and Friday for the Diwali holiday

• Implied opening from forwards suggests spot may start trading around 74.24

• 10-year yields little changed at 6.36% on Wednesday

• Global funds sold net Rs 401 crore of India stocks Wednesday: NSE

• They did not sell sovereign bonds under limits available to foreign investors, and withdrew Rs 63 crore of corporate debt

• State-run banks bought Rs 738 crore of sovereign bonds on Nov. 3: CCIL data. Foreign banks sold Rs 359 crore of bonds

Source: Bloomberg