Sensex, Nifty Log The Worst Day In A Week, Dragged By Reliance

India's stock benchmarks erased gains to post their steepest decline in a week, dragged by Reliance Industries and Bajaj twins, ahead of U.S. Federal Reserve's rate-setting meeting that is likely to accelerate the monetary policy normalisation process. Investors will also await India's retail inflation data, scheduled to be announced later today.

The S&P BSE Sensex shed 0.86% to 58,283.42. The 30-stock gauge rose 0.71% in intraday trade to 59,203.37, before erasing the gains. This is the first time the Sensex reclaimed 59,000 mark since November 22. The NSE Nifty also declined by similar magnitude to 17,368.25. Reliance Industries Ltd. contributed the most to the index decline, decreasing 2%. Bajaj Finance Ltd., had the largest drop, falling 3.1%. Today, 36 of 50 shares fell, while 14 rose.

The S&P BSE MidCap almost mirrored its larger peers as it shed over 0.5% while the S&P BSE SmallCap outperformed with 0.25% gains. Barring S&P Consumer Durables which closed little changed, all the other 18 sectoral indices compiled by the BSE declined with S&P BSE Energy slipping 1.75%.

The market breadth was skewed in the favour of bulls. About 1,912 stocks advanced, 1,554 declined and 171 remained unchanged.

"The market witnessed profit selling in the second half after strong opening. Domestic market impacted by negative sentiments from other Asian markets as traders edged away from riskier assets amid renewed concerns about Covid-19, inflationary pressure in USA and outcome of upcoming Fed meeting", Mitul Shah, Head of Research at Reliance Securities wrote in a note.

• Shares of TTK Prestige Ltd. rose 7.59%, the biggest intraday gain in over six weeks, to a record Rs 11,827 apiece ahead of the stock split ex date on Tuesday.

• The company has fixed December 15 as the record date for purpose of sub-division of Rs 10 per equity share of the company into ten equity shares of Rs 1 each.

• Trading volume was quadruple the average for this time of day.

• Analysts have seven 'buy', two 'hold' and two 'sell' recommendations on the stock.

Shares of Greenlam Industries rose 4.89% in intraday trade to a record Rs 1,765 apiece after the company approved sub-division of every equity share having face value of Rs 5 each to five equity shares of Rs 1 each.

The rationale behind the split is to encourage wider participation of retail investors by making the shares more affordable and to enhance the liquidity of company's shares in the market.

Of the eight analysts tracking the company, six maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 11%.

• BPCL sale timeline dependent on various factors.

• Government has received EoIs from bidders who are conducting due diligence.

• Since BPCL is being divested on a 'going concern' basis, the business activities of the company will continue after privatisation.

• There are appropriate provisions to continue subsidies keeping in mind the interests of LPG consumers of BPCL.

Source: Bhagwat Karad, MoS, Ministry of Finance, in a Parliament reply.

• Shares of TV18 Broadcast Ltd. rose for the fifth consecutive day. This is the longest winning streak for the stock in over a year, since December 3, 2020. The stock has risen 24% during the streak while Sensex index rose 2.7%.

• The relative strength index on the stock was at 73; suggesting that it may be overbought. Trading volume on the stock was 3.7 times the 30-day average volume, for this time of the day.

Shares of Gravita India Ltd. rose nearly 6.5% in intraday trade to Rs 249.9 apiece after it announced operationalisation of its new battery recycling unit at Mundra Port, Gujarat.

In an exchange filing, the company said that it incurred capital expenditure of Rs 32 crore for setting up of the phase-1 of the facility for which Rs 26 crore has been funded throught external borrowings. The remaining was funded by internal accruals.

The company is expected an increase in share of higher-margin business across lead, aluminium and plastic recycling segment.

• The petition seeks a declaration there is a violation of fundamental right in failure to cover gig workers as workers under applicable social security laws.

• The petition requests the court to direct that the app-based workers should be covered under social security benefits including health insurance, maternity benefits, disability allowance etc.

• The top court has issued notice and sought government's response in four weeks.

Shares of Nazara Technologies Ltd. hit 5% upper circuit in intraday trade. In an exchange filing, the company said its subsidiary NODWIN Gaming picked up 10% stake in digital content IP network - Rusk Media.

NODWIN gaming has been on an expansion and consolidation spree. Recently, the company acquired the gaming and adjacent IP business of OML Entertainment.

India's stock benchmarks erased gained and declined, in a volatile session, dragged by energy stocks. Investors await retail inflation data, scheduled to be released after markets close Monday.

The S&P BSE Sensex fell 0.4% to 58,550.01. The 30-stock gauge rose over 0.7% in intraday trade and re-claimed the 59,000 mark for the first time since November 22. The NSE Nifty 50 also fell by similar magnitude to 17,456.95.Reliance Industries Ltd. contributed most to the index decline, decreasing 1.6%. Bajaj Finance Ltd., had the longest drop, falling 2.5%. In midday trading, 30 of the 50 shares fell, while 19 rose.

The broader indices outperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap posting gains. Thirteen of the 19 sectoral indices compiled by BSE LTd. advanced, with S&P BSE Metal and Consumer Durables leading the gains. On the flipside, S&P BSE Energy shed over 1%.

The market breadth was skewed in the favour of bulls. About 2,069 stocks advanced, 1,297 declined and 184 remained unchanged.

Shares of Subex Ltd. rose 5.75% in intraday trade to Rs 60.65 apiece after the company said that it took immediate action to identify the reach for an outage of its infrastructure and external-facing websites over the past week.

In an exchange filing, the company said it found that the outage was caused by a targeted cyber-attack and certain data and systems were affected. The company also added that it is taking a measured approach to minimise adverse effect due to the incident.

• Ultraviolette to use investment towards production and commercial launch of its high-performance electric motorcycle.

• TVS has invested $9.9 million, while Zoho has infused $5million.

Source : Company statement & MCA filings.

Shares of Sun Pharma Advanced Research Co Ltd. rose over 10%, the biggest intraday gain in over four months, to Rs 284.3 apiece, after Morgan Stanley initiated coverage on the stock with an 'overweight' recommendation.

The brokerage has set a price target of Rs 895 versus Friday's closing price of Rs 258.1 per share.

Shares of Antony Waste Handling Cell Ltd. rose over 14.6%, the biggest intraday gain in four months, after the company's subsidiary, AG Enviro Infra Projects Pvt. Ltd. received letter of intent for a contract. The contract pertains to door-to-door collection of municipal solid waste. The order was given North Delhi Municipal Corporation. The project is estimated to lead to an approximate revenue of Rs 1,000 crore in 10 years.The broad consideration for the order is approximately Rs 1,000 crore for concession period, 10 years.

Both the analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 51%.

Most yields along the India sovereign yield curve fell, with 3-year bonds moving the most in Monday morning trading.

• The 3-year yield fell 1.2bps to 5.104%

• The 10-year yield fell 0.5bps to 6.365%

• The 30-year yield was little changed at 6.956%

• The 3-year-10-year yield spread was 126.1bps, vs previous close 125.4bps

Source: Bloomberg

• Grofers changes its name to Blinkit as part of its drive to push rapid delivery.

• Earlier this year, grofers pivoted from scheduled deliveries to rapid 10-minute delivery model.

• "Today, we are surging ahead as a new company, and we have a new mission statement – “instant commerce indistinguishable from magic," CEO Albinder Dhindsa wrote in a blogpost.

Source: Grofers blog

Shares of Minda Industries Ltd. rose 8.17%, the biggest intraday gain in a month, to a record Rs 1,019 apiece, after the company decided to enhance two-wheel alloy wheel capacity by another 2 million per annum at its existing Supa plant in Maharashtra. The expansion is part of the two-phased expansion planned by the company at the time of foraying in 2W Alloys wheel business. The additional capital expenditure for the capacity expansion will be Rs 190 crore.

Besides this, the company's key subsidiary Minda Kosei Aluminium Wheel Pvt. Ltd. will be expanding its 4W Alloy wheel capacity by 30,000 wheels per month at its plant in Gujarat. This capacity expansion is being done to increase demand from leading OEMs in vicinity. The capital expenditure for this capacity expansion will be Rs 74 crore.

The company also entered into a joint venture agreement with FRIWO AG Germany, a leading international manufacturer of innovative power supply units and e-drive solutions. Minda Industries will hold a majority stake of 50.1% in the joint venture entity.

In an exchange filing, Minda Industries said it expects a surge in two-wheel electric vehicles over next 5-6 years in India. The JV plans could incur capex of Rs 390 crore over next six years with the outlay in the initial couple of years to be around Rs 160 crore. Minda Industries plans to invest Rs 71 crore in one or more tranches to fund the expenditure. The remaining funding needs will be met through internal accruals, equity investment and debt, the company said.

Of the 22 analysts tracking the company, 12 maintained 'buy', eight maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 10.5%. Trading volume on the stock was 7.1 times the 30-day average volume, for this time of the day.

Shares of Venky's India Ltd. rose 4.79%, the biggest intraday rise in seven sessions, to Rs 2,718 apiece, after the company announced that it is setting up a new project for manufacture of Veterinary Medicine Products under its Animal Health Product Segment. The company has acquired land in Satara district in Maharashtra for this purpose. The project is expected to be completed by March 2022 and commercial production is estimated to begin from June 2022.

In an exchange filing, Venky's said tha tthe project will focus on the manufacture of Veterinary Medicines Powders (600 Tonnes/Annum) and Veterinary Medicines Liquids (300 Kilolitres/Annum) to cater to the demand from poultry industry. The total cost of the project is estimated to be Rs 30 crore, which will be fund from the company's internal accruals.

Cadila Healthcare Ltd. has received permission to initiate Phase II (a) clinical study of its NLRP3 inhibilitor 'ZYIL1' in patients with Crypoprin-Associated Periodic Syndrome in Australia.

CAPS is a rare life-long, auto-inflammatory condition and is classified under orphan disases.

Source: Exchange Filing

• Tega Industries pre-market discovery price at Rs 753

Source: Bloomberg

• Shares of Easy Trip Planners Ltd. rose 4.74% to Rs 596 apiece after the company announced that it will consider the purchase of technology and brand name in its board meeting on December 16.

• Trading volume on the stock was 3.1 times the 30-day average volume, for this time of the day.

Source: Exchange Filing

Shares of Power Grid Corp of India Ltd. rose 3.31%, the most intraday gains in seven sessions, to Rs 209.35 apiece after the company said it will consider and approve the declaration of interim dividend on December 15. The company has fixed December 23 as the record data to ascertain the eligibility of shareholders of payment of interim dividend.

Of the 28 analysts tracking the company, 20 maintained 'buy', six maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 2.3%.

India's stock benchmarks opened higher, aided by power, metal, banking, capital goods, realty and telecom stocks, amid positive global cues following the record close for S&P 500. Investors will be closely watching several central bank meeting, due this week. Markets will also await India's November retail inflation data, scheduled to released later today.

The S&P BSE Sensex rose 0.58% to 59,125.15. The NSE Nifty 50 also advanced by similar magnitude to 17,626.20. ICICI Bank Ltd. contributed the most to the index gain, rising 1.2% . Power Grid Corp of India had the largest increase, rising 3%. In early trading, 49 out of 50 shares rose, while one fell.

The broader indices outperformed their larger peers with S&P BSE MidCap gaining 0.75% and S&P BSE SmallCap adding over 1%. All the 19 sectoral indices compiled by BSE Ltd. advanced, with S&P BSE Power rising nearly 2%.

The market breadth was skewed in the favour of bulls. About 2,137 stocks advanced, 462 declined and 119 remained unchanged.

Rupee bond traders will watch out for retail inflation data due after market hours. The release will be closely watched as RBI Governor Shaktikanta Das heads into his second term with increasing pressure to pivot back toward battling inflation and winding down crisis-era policy settings.

• 10-year yields rose 2bps to 6.37% on Friday.

• USD/INR rose 0.4% to 75.7850 on Friday.

• Global funds sell net Rs 1,090 crore of India stocks Friday: NSE

• They bought Rs 91 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 427 crore of corporate debt.

Source: Bloomberg

• Number of loans disbursed through Paytm's platform increased by 414% YoY to 2.7 million loans in the first two months of the quarter, the company said in an exchange filing before market hours Monday. The value of loans disbursed through Paytm rose by 375% YoY to Rs 1,320 crore, in the same period.

• Monthly transacting users (MTU) rose steadily in FY2021 and in the first two quarter of FY2022. In the third quarter of FY2022, MTU is up 36% YoY with 63.2 million average in the first two months of Q3, compared to 46.6 million average MTUs in the first two months of Q3FY21.

• Axis Bank raised to 'buy' from 'neutral' at Goldman Sachs; price target at Rs 920.

• LIC Housing raised to 'neutral' from 'sell' at Goldman Sachs; price target at Rs 435.

• FSN E-Commerce Ventures: Goldman Sachs initiated coverage with a 'buy' recommendation; price target at Rs 2,800.

• M&M Financial Services raised to 'neutral' from 'sell' at Goldman Sachs; price target at Rs 180.

Source: Bloomberg

• Supriya Lifescience Ltd. has set a price range of Rs 265-274 per share, for its initial public offering seeking to raise Rs 700 crore ($92.5 million), according to an advertisement in the Financial Expresss newspaper.

• The Mumbai-based maker of active pharmaceuticals ingredients is now looking to raise Rs 200 crore by selling new shares, while its founder Satish Waman Wagh will sell Rs 500 crore worth of shares in the IPO.

• ICICI Securities and Axis Capital are managing the IPO.

Edelweiss Financial Services Ltd.'s wholly owned subsidiary Edel Finance Company Ltd. has acquired 5.28% stake in Edelweiss Securities Ltd, the wealth management business of the company.

With this, the stake of the group in Edelweiss Wealth Management has risen to 44.16%. PAG- the world's largest Asia-focused investment group continues to be the majority stake holder in wealth management business with 44.84% stake. The cost of acquisition is Rs 230.41 crore.

In an exchange filing, the company said that the demerger process for Edelweiss Wealth Management is progressing as planned in a phased manner.

Akasa may get its air operator's permit by April, reports the Economic Times, citing a government official it did not name.