Sensex, Nifty Advance For Second Week Aided By Information Technology Stocks

India's stock benchmarks advanced for the second consecutive week, aided by gains in information technology and energy stocks, amid rising volatility in global markets following the sharp rise in inflation in the U.S.

On Friday, both the S&P BSE Sensex and NSE Nifty 50 snapped a 3-day losing streak, as well.

Sensex rose over 1.25% to 60,686.69. Nifty 50 also advanced by similar magnitude to 18,102.75. This is the biggest single day gain for Nifty and Sensex since rising 1.5% on November 1. Infosys Ltd. contributed the most to the index gain, increasing 2.7%. Tech Mahindra Ltd. had the largest increase, rising 4.1%. Today, 42 of 50 shares rose, while 8 fell.

The broader indexes underperformed their larger peers with the S&P BSE MidCap index adding nearly 0.6% and the S&P BSE SmallCap gaining 0.25%. All the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Information Technology and S&P BSE Teck indexes rising over 2%

The market breadth was skewed neither in the favour of bulls nor bears. About 1,659 stocks advanced, 1,655 declined and 150 remained unchanged.

September Quarter Results (Consolidated, QoQ)

• Net loss at Rs 7,132.3 crore vs net loss of Rs 7,319.1 crore (Bloomberg Consensus Estimate: Net loss of Rs 7,293 crore)

• Revenue at Rs 9,406.5 crore vs Rs 9,152.3 crore (Estimate: Rs 9,322 crore)

• Total costs at Rs 16,577.6 crore vs Rs 16,682.8 crore

• Other income at Rs 29.1 crore vs Rs 33.5 crore

• Mobile ARPU at Rs 109, up 4.8% QoQ

• EBITDA up 4.2% at Rs 3862.9 crore vs Rs 3707.7 crore (Estimate: Rs 3844.8 crore)

• EBITDA margins at 41.1% vs 40.5% (Est 41.2%)

Source: Exchange Filing

Shares of Hindalco Industries Ltd. rose over 3.5% in intraday trade to Rs 469.9 apiece after the company reported net income above average analyst estimate for the September quarter.

Second Quarter Numbers (Consolidated, QoQ)

• Net Profit at Rs 3,417 crore vs Rs 2,787 crore (Bloomberg Consensus Estimate: Rs 2,779 crore)

• Revenue at Rs 47,665 crore vs Rs 41,358 crore (Estimate: Rs 44,424.8 ccrore)

• EBITDA at Rs 8,048 crore vs Rs 6,790 crore (Estimate: Rs 6,157 crore)

• Margins at 16.9% vs 16.4%

Commentary and Context

• Hindalco to acquire Polycab's 100% equity stake in Ryker Base.

• Results driven by strong performance by Novelis and India business, favourable macros, strategic product mix, higher volume and stability in operations.

Source: Exchange Filing

Of the 29 analysts tracking the company, 28 maintained 'buy' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 23.3%.

Trading volume on the stock was 1.3 times the 30-day average volume, for this time of the day.

• Shares of Karur Vysya Bank Ltd. rose for the eighth straight day, on track for the longest winning streak since the period ended March 18, 2016.

• Karur Vysya Bank has gained a total of 22% during the streak while the S&P BSE Sensex index increased 0.6%.

• The relative strength index on the stock was at 77; suggesting it may be overbought.

Second Quarter Results (Consolidated, QoQ)

• Revenue up 13% at Rs 2,386 crore Vs Rs 2,108 crore (Bloomberg Estimate: Rs 1,625 crore)

• Net profit up 76% at Rs 270 crore Vs Rs 153 crore (Bloomberg Estimate: Net profit of Rs 189 crore)

• Ebitda up 13% at Rs 510 crore Vs Rs 450.8 crore (Bloomberg Estimate: Rs 433 crore)

• Ebitda margin at 21.4% Vs 21.4%

Source: Exchange Filing

September Quarter Results (Consolidated, QoQ)

• Revenue up 2% at Rs 1,018.3 crore Vs Rs 1,000.2 crore (BBG estimate : Rs 1,280.4 crore)

• Net profit down 2% to Rs 144.7 crore from Rs 146.9 crore (BBG estimate : Rs 179.1 crore)

• EBITDA down 2% to Rs 239.1 crore from Rs 244.2 crore (BBG estimate : Rs 306.5 crore)

• Margins at 23.5% Vs 24.4% (BBG estimate : 23.9%)

• EPS at Rs 1.5 per share Vs Rs 1.52 (BBG estimate : Rs 1.69)

Source: Exchange Filing

Shares of Alkem Laboratories Ltd. advanced over 4%, the most intraday gain in nearly two weeks, to Rs 3,673.55 apiece after the company reported net income and revenue above the average analyst estimate, in the September quarter.

September Quarter (Consolidated, QoQ)

• Net profit at Rs 544.26 crore vs Rs 468.12 crore (Bloomberg Consensus Estimate: Rs 440 crore)

• Revenue at Rs 2,799.99 crore vs Rs 2,731.36 crore (Estimate: Rs 2,644 crore)

• Total costs at Rs 2,260.41 crore vs Rs 2,221.89 crore

• Other income at Rs 41.96 crore vs Rs 46.65 crore

Of the 21 analysts tracking the company, 15 maintained 'buy', five maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 14.8%.

India's stock benchmarks rose, aided by gains in information technology, energy and telecom stocks.

The S&P BSE Sensex rose 0.50% to 60,218.40 apiece. The NSE Nifty 50 index also advanced by similar magnitude to 17,968.55. Infosys Ltd. contributed the most to the index gain, increasing 1.5%. Tech Mahindra Ltd. had the largest increase, rising 2.2%. In midday trading, 36 of 50 shares rose, while 14 fell.

The broader indexes underperformed their larger peers with the S&P BSE MidCap index adding 0.2% and the S&P BSE SmallCap index little change. Fifteen of the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Information Technology index and S&P BSE Utilities rising over 1%.

The market breadth was skewed neither in the favour of bulls nor bears. About 1,564 stocks advanced, 1,611 declined and 156 remained unchanged.

Shares of Motherson Sumi Systems Ltd. shed 3.75% in intraday trade to Rs 228.35 after the company reported net income for the September quarter above average analyst estimate, but below the corresponding figure in the June quarter, on a sequential basis.

September Quarter Results (Consolidated, QoQ)

• Net profit down 25.12% at Rs 216.86 crore vs Rs 289.63 crore

• Revenue down 13.71% at Rs 14,076.39 crore vs Rs 16,312.13 crore

• Total costs at Rs 14,001.29 crore vs Rs 15,809.40 crore

• Other income at Rs 87.14 crore vs Rs 154.78 crore

Commentary & Context

• Higher working capital requirements in 2Q due to irregular production trends by OEMs

• Net Debt to EBITDA ratio has increased to 1.32x

• Operating performance aided by cost controls along with partial revenue recovery in India

• Sharp drop in OEM production across key geographies due to supply chain constraints continued to adversely impact revenue and profitability

• Awaiting NCLT approval for next steps of proposed re-organization

• Global demand for passenger vehicles remains strong although supply side challenges likely to continue in 3Q as well

• Raw material prices remain elevated, although contractual lag in pricing is expected to narrow

Of the 29 analysts tracking the company, 19 maintained 'buy', seven maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 9.3%

Shares of Capacit'e Infraprojects Ltd. rose nearly 5% in intraday trade to Rs 181.05 apiece ratings agency India Ratings & Research hailed the company's clean debt servicing track record since August 23.

India Ratings said it would review the existing rating of 'INDD' after November 21, when the 90-days cooling period from date of curing of delays ends.

• Recent measures by Capacit'e Infraprojects demonstrates management's intent to address internal policy and control-related issues.

• Auto-debit facility and creation of debt service reserve would reduce manual intervention and any process related issues.

• Indian government bonds stay in a narrow range ahead of a Rs 24,000 crore ($3.2b) bond auction. The rupee gains along with with Asian peers.

• 10-year yields down 1bp to 6.36% after rising 3bps Thursday

• USD/INR down 0.1% to 74.4438

Source: Bloomberg

Adani Enterprises Ltd. has signed initial joint MoU with four Israeli companies - Capital Nature Ltd., Chevron Mediterranean Ltd., Konnect and Enlight Renewable Energy Ltd., to participate in partnership for establishing new technological incubators, a programme under Israel innovation authority.

Source: Exchange Filing

• RailTel Corporation of India Ltd. terminates contract awarded to Margo Networks, a subsidiary of Zee Entertainment Enterprises Ltd.

• The contract pertained to providing Content on Demand service in all mail/express and suburban trains and Wi-Fi enabled railway stations.

• Zee Entertainment said its subsidiary has initiated appropriate legal proceedings against the notice of termination.

• Happy that RBI has taken a number of steps keeping the common person in mind.

• Schemes being launched today will help the investment culture and make it easier for retail investors to invest.

• Retail investors can buy government bonds via retail direct scheme rather than go via vehicles like mutual funds.

• All investment can now happen online via the mobile phone.

• In turn, government will be able to draw longer term funds for infrastructure development.

• The government has taken a number of steps to strengthen the banking sector.

• The problem of bad loans has been dealt with decisively.

• Resolution, recovery and recapitalisation has been prioritised.

• Governance in public sector banks has been strengthened.

• Co-operative banks too have been strengthened

Source: PM Speech At Launch

October Auto Sales (MoM)

• Passenger cars: 103,829 units, up 62% MoM

• Passenger vehicles: 226,353 units, up 41.4 % MoM

• Utility vehicles: 112,112 units, up 28% MoM

• Two-wheelers: 1,541,621 units, up 0.86% MoM

• Motorcycle: 1,017,874 units, up 7.3% MoM

• Scooter: 467,161 units, down 9.6% MoM

• Chip shortage and steep hike in raw material cost have been a major spoilsport for the industry in the festive season.

• Manufacturers were banking on the festive season to recover from the severe drop in sales in early part of FY22.

Source: Society of Indian Automobile Manufacturers

• Most yields along the India sovereign yield curve fell, with 5-year bonds moving the most in Friday morning trading.

• The 4-year yield fell 1.1bps to 5.368%

• The 10-year yield fell 1.4bps to 6.354%

• The 30-year yield remained unchanged at 6.926%

• The 4-year-10-year yield spread was 98.6bps, vs previous close 98.9bps

Source: Bloomberg

• Astral raised to 'buy' from 'accumulate' at Elara Securities; price target: Rs 2,682

• Page Industries raised to 'buy' from 'accumulate' at Elara Securities; price target: Rs 48,425

• Page Industries cut to 'sell' from 'reduce' at Kotak Securities; price target: Rs 35,400

Source: Bloomberg

Cadila Healthcare Ltd.'s U.S. subsidiary Zydus Pharmceuticals (USA) Inc. received tentative nod from U.S. FDA to market Eluxadoline tablets in the strengths of 75 mg and 100 mg, the company said in an exchange filing.

These tablets will be manufactured in the company's formulation manufacturing facility at Ahmedabad.

• One97 Communications Ltd., which operates Paytm, sold 85.1 million shares at Rs 2,150 apiece, the top of a marketed ranged, according to terms of the deal seen by Bloomberg News

• Settlement expected on November 17 Wednesday

• Trading starts November 18 Thursday.

• Morgan Stanley, Goldman Sachs, Axis Capital, JPMorgan, Citigroup, ICICI Securities and HDFC are bookrunning lead managers.

Source: Bloomberg

• Indian online auto marketplace Droom Technology seeks SEBI approval to raise Rs 2,000 crore ($269 million) via a fresh issue of shares.

• Droom founder plans to sell Rs 1,000 crore worth of shares

• Droom may consider pre-IPO sale of up to Rs 400 crore of shares.

• ICICI Securities, Axis Capital, Edelweiss Financial Services, HSBC and Nomura are the banks managing the IPO

Source: Draft Red Herring Prospectus

(Corrects an earlier version that misstated the IPO size)

Shares of Ramkrishna Forgings Ltd. rose 2.6% in intraday trade to Rs 1,043 apiece after the company signed MoU with ePropelled (US), a Massachusetts-based tech firm specialising in electric propulsion systems.

The two companies will jointly develop products and solutions to raise power efficiency in electric vehicle batteries, enabling manufacturers to reduce size and cost.

Of the five analysts tracking the company, four maintained 'buy' and one maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 35.6%.

Shares of Tata Steel BSL Ltd. rose over 3% in intraday trade, the most in over a week, to Rs 89.05 apiece.

The amalgamation scheme of Bamnipal Steel Ltd. and Tata Steel BSL Ltd. into and with Tata Steel Ltd. was filed with Registrar of Companies, and became effective as on November 11, according to the company's exchange filing.

The scheme was approved and sanctioned by the National Company Law Tribunal, Mumbai bench vide order dated October 29.

• Fino Payments Bank’s pre-market discovery price at Rs 548 per share, compared to its IPO price of Rs 577.

• The company’s IPO was subscribed 2.03 times.

Source: Bloomberg

India's stock benchmarks advanced, aided by gains in metals and information technology stocks.

The S&P BSE Sensex rose 0.57% to 60,260.59. The NSE Nifty 50 also advanced by similar magnitude to 17,980.40. Infosys Ltd. contributed the most to the index gain, increasing 0.8%. Hindalco Industries Ltd. had the largest increase, rising 1.7%. In early trading, 46 of 50 shares rose, while 4 fell.

The broader indexes almost mirrored their broader peers with the S&P BSE MidCap and the S&P BSE SmallCap adding 0.4%. All the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Metal index gaining 1%.

The market breadth was skewed in the favour of bulls. About 1,655 stocks advanced, 771 declined and 97 remained unchanged.

Go Fashion India Ltd. has set a price range of Rs 655-690 for its initial public offering that could raise as much as Rs 1,014 crore ($136 million), according to a public notice in Financial Express newspaper Friday.

• The women’s apparel retailer is selling new shares worth as much as Rs 125 crore in the IPO, while its shareholders plan to sell up to 12.88 million shares

• The IPO will take subscriptions Nov. 17-22

• JM Financial, DAM Capital Advisors and ICICI Securities are the banks managing the share sale

• Indigo has 4.24 million shares change hands in a pre-market trade.

• Details of buyers and sellers are not known.

Source: Bloomberg

Indian bond traders are awaiting key inflation data for October that is expected to accelerate. The government is forecast to sell Rs 24,000 crore ($3.22 billion) of bonds.

• India’s headline inflation probably quickened for the first time in five months in October, according to a Bloomberg survey of economists; print inched up to 4.41% from 4.35%, according to the median estimate of the survey

• USD/INR rose 0.2% on Thursday to 74.5163; up 0.1% so far this week

• 10-year yields rose 3bps Thursday to 6.37%

• PM Modi to launch retail trading of sovereign bonds Friday

• Global funds sell net Rs 1,640 crore of India stocks Thursday: NSE

• They sold Rs 8 crore of sovereign bonds under limits available to foreign investors, and offloaded Rs 61 crore of corporate debt

• State-run banks bought Rs 910 crore of sovereign bonds on Nov. 11: CCIL data. Foreign banks sold Rs 719 crore of bonds

Source: Bloomberg

The amalgamation scheme of Bamnipal Steel Ltd. and Tata Steel BSL Ltd. into and with Tata Steel Ltd. was filed with Registrar of Companies, and became effective as on November 11.

The scheme was approved and sanctioned by the National Company Law Tribunal, Mumbai bench vide order dated October 29.

Source: Exchange Filing

• Ola is finalizing talks to raise $250 million-$500 million before its IPO, Economic Times reported, citing people it didn’t name. 

• A deal could take Ola’s valuation to about $7 billion, according to the report

• IIFL Wealth Management, Edelweiss Private Equity as well as existing investors Warburg Pincus and SoftBank are expected to participate in the funding round, the newspaper said

• Suprajit Engineering raised to 'buy' from 'reduce' at Spark Capital Advisors; price target: Rs 425

• Oil India raised to 'add' from 'hold' at ICICI Securities; price target: Rs 238

• Minda Industries cut to 'hold' from 'buy' at Sytematix Shares; price target: Rs 780

Source: Bloomberg