Sensex, Nifty Snap Four-Day Losing Streak In A See-Saw Session

India's stock benchmarks snapped a four-day losing streak, aided by gains in metal, power, psu banking and realty stocks. The S&P BSE Sensex and NSE Nifty 50 indexes advanced in a session of two halves in which they declined over 1% in intraday trade before erasing losses.

The Sensex rose 0.34% to 58,664.33. The Nifty 50 advanced 0.5% to 17,503.25. Reliance Industries Ltd. contributed the most to the index gain, increasing 0.9%. JSW Steel Ltd. had the largest increase, rising 4.0%. Today, 40 of 50 shares rose, while 10 fell.

The broader indices outperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap indexes rising above 1.6%. Barring S&P BSE Information Technology index, all the other 18 sectoral indices compiled by the BSE Ltd. advanced with S&P BSE Metal, S&P BSE Power and S&P BSE Utilities gaining over 3%.

The market breadth was skewed in the favour of bulls. About 2,430 stocks advanced, 829 declined and 156 remained unchanged.

• ICICI Bank Ltd. has 1.3 million shares change hands in a bunched trade

• Details of buyers and sellers are not immediately known

Source: Bloomberg

• Infosys Ltd. has 1.7 million shares change hands in a bunched trade

• Details of buyers and sellers are known immediately

Source: Bloomberg

Rupee may rally to 72 per dollar over the next 12 months helped by an attractive carry-to-volume and strong capital inflows, according to a Goldman Sachs note.

• Carry-to-volume attractiveness may increase as the RBI normalizes monetary policy, though rising oil prices will contain spot appreciation

• Expect capital flows to remain buoyant in CY22 given a robust IPO pipeline and passive bond inflows with India’s likely inclusion in the JPM GBI-EM Bond Index by end-2022/early 2023.

• RBI will likely hike the reverse repo rate by year-end and repo rates from Q2-2022. Sees 75bps of repo rate hikes next year

• Inflation could increase to 5.8% in 2022 from 5.2% in 2021, driven by core inflation

• RBI may find it difficult to keep carrying out unsterilized interventions in the forex spot market, which would create further rupee liquidity. Instead, it may allow some rupee appreciation and use tools such as Operation Twist and variable rate reverse repos

Source: Bloomberg

Bharti Airtel's data center subsidiary Nxtra launched new hyperscale data centre park in Chennai. This is the Nxtra's third largest data centre in Chennai.

The 38 Mega Watt new data center is fully integrated with the company's global submarine cable network to offer end-to-end solution to customers.

Nxtra by Airtel now operates the largest network of data centers in India with 11 hyperscale and 120 edge data centers.

Source: Exchange Filing

• India intends to sell about 5 million barrels of oil from its strategic petroleum stockpiles.

• Sale as part of coordinated move with U.S. and other allies to pressure prices.

• Release may come with in a week and India may look at selling more tranches later.

• India's crude to be sold to refiners including those operated by Mangalore Refinery & Petrochemicals ad HPCL

Source: Person Familiar With The Situation

• SpiceJet exploring wide-body long-haul operations: Ajay Singh

• SpiceJet cargo business to be separate entity by January 1: Ajay Singh

• Boeing providing SpiceJet compensation in cash, jets: Ajay Singh

Source: Bloomberg

TVS Motor Company announced that they signed a Memorandum of Understanding (MoU) with Government of Tamil Nadu for investment in future technologies and electric vehicle.

• Under the MoU, TVS Motor Company will invest Rs 1,200 crore in Future Technologies and EVs in the next four years.

• The investment will focus on design, development and manufacturing of new products and capacity expansion in EVs.

• Oil & Natural Gas Corp Ltd. has 2.02 million shares change hands in a bunched trade.

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

• Nitin Gadkari: Request Automobile Manufacturers to offer benefits of as much as Rs 1,50,000 to consumers who can produce proof of scrapping previous vehicles

• Gadkari: India scrappage policy to lead to 10-12% auto sales jump

• Gadkari: Requested OEMs to offer discount against scrapped cars

• Gadkari: India scrappage policy can reduce material cost by 33%

Source: Bloomberg

• Indian Oil has 3.58 million shares change hands in a bunched trade.

• Details of buyers and sellers are not known immediately.

Source: Bloomberg

Shares of Glenmark Pharmaceuticals Ltd. rose over 9% to Rs 511.9 apiece, the most in seven months. Trading volume was five times the 30-day average volume, for this time of the day. The stock is testing the 50-day moving average resistance at Rs 513.16.

Analysts have 14 'buy', seven 'hold' and two 'sell' recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 23.2%.

India's stock benchmarks erased losses as much as 1%, as losses in energy and information technology stocks were offset by gains in metals, realty and telecom stocks. Globally, investors remain concerned over possibility of quicker policy tightening in the U.S. after Jerome Powell's renomination as Federal Reserve Chair.

The S&P BSE Sensex was little changed at 58,427.70. The 30-stock gauge shed 1.28% in intraday trade to 57,718.34. The NSE Nifty 50 index also traded flat at 17,411.85. JSW Steel Ltd. contributed the most to the index gain and had the largest move, increasing 4.2%. In midday trading, 34 of 50 shares rose, while 16 fell.

The broader indices outperformed their larger peers with S&P BSE MidCap and S&P BSE SmallCap rising nearly 1.3%. Fifteen of the 19 sectoral indices compiled by the BSE Ltd. advanced with S&P BSE Metal adding 3%.

The market breadth was skewed in the favour of bulls. About 2,219 stocks advanced, 926 declined and 146 remained unchanged.

Equitas Small Finance Bank Ltd. announced partnership with HDFC Bank to offer co-branded credit cards.

The cards will be available for Equitas Small Finance Bank's customers. The credit card can be availed in two categories, one offering Rs 25,000-Rs 2,00,000 credit limit and another above Rs 2,00,000.

• Vodafone Idea announced the launch of new tariff plans for prepaid users in India.

• The new plans are aimed at improving ARPU and addressing financial stress faced by the company and the sector.

• Price of the entry-level voice plan will increase by 25.3% to Rs 99.

• Prices of Unlimited voice bundles and Data top-ups will increase between 19-23%.

• New tariffs will be effective from November 25, 2021.

Source: Vodafone Idea Press Release

• Maruti Suzuki India Ltd. said that NCLAT has granted an interim stay on the final order of Competition Commission of India dated August 23, 2021.

• CCI had imposed Rs 200 crore penalty on Maruti Suzuki, for alleged anti-competitive practices regarding controlling discounts that dealers could offer consumers. The order pertained to the payment of 10% of the penalty amount.

• Maruti Suzuki had appealed against the CCI. NCLAT has directed the case to be listed for admission on December 15, 2021.

• The Indian rupee falls for a second day on concerns that a quicker pace of U.S. policy normalization may fuel outflows. Bond yields track an overnight rise in their U.S. peers.

• USD/INR rises 0.2% to 74.5650

Source: Bloomberg

• Supreme Court adjourns the hearing to December 8

• The bench was unhappy with the parties submitting bulky volumes of documents.

• Parties have been asked to submit fresh short volumes of the documents.

Chief Justice of India NV Ramana

• Please do not bring all that into these proceedings. We say something and people are interpreting in different ways. That is a separate grievance.

• File separate SLP or approach the High Court

Shorter-term India sovereign securities declined in Tuesday morning trading.

• The 3-year yield rose 1.8bps to 5.123%

• The 10-year yield rose 1.7bps to 6.368%

• The 30-year yield remained unchanged at 6.89%

• The 3-year-10-year yield spread was 124.5bps, vs previous close 124.6bps

Source: Bloomberg

• ONGC has 1.4 million shares change hands in a bunched trade.

• Details of the buyers and sellers are not immediately known

Source: Bloomberg

Alembic Pharmaceuticals Ltd. received final approval from U.S. FDA for its abbreviated new drug application for Formoterol Fumarte Inhalation Solution. This is therapeutically equivalent to Perforomist Inhalant Solution of Mylan.

• The solution is used to treat bronchoconstriction in patients with chronic obstructive pulmonary disease, including chronic bronchitis and emphysema.

• The ANDA has been co-development with Orbicular Pharmaceutical Technologies Pvt Ltd. and has an estimated market size of $310 million for twelve months ending September 2021, according to IQVIA.

Source: Exchange Filing

• Expect continued surge of listings of IPOs in the market

• Opportunities in the technology and new economy sectors in particular

• Cautious of some of the high valuations for the IPOs

• Have started to book some profits on Indian equities as valuations are key right now and instead moving into growth areas in the China market.

• Overweight financials in India, especially private sector banks

• Bullish on quality, domestic names in energy and communication services

• Remain positive on India in the longer term on economic growth, structural reforms and IPO pipeline.

Belinda Boa, Head - Active Investments, Asia Pacific, BlackRock

Source: Bloomberg

• Latent View Analytics’ pre-market discovery price at Rs 530 per share, compared to its IPO price of Rs 197.

• The company’s IPO was subscribed over 305 times, the most this year so far.

Source: Bloomberg

Shares of One 97 Communications Ltd. rose 6.53% in intraday trade to Rs 1,448.4 apiece, as investors snap up shares after the stock fell nearly 37% over the past two trading sessions.

India's stock benchmarks opened lower, dragged by information technology, banking and energy stocks, amid rising concerns over quicker policy tightening in the U.S. after Jerome Powell's renomination as Federal Reserve Chair.

The S&P BSE Sensex index shed 1.13% to 57,806.04. The NSE Nifty 50 index also declined by similar magnitude to 17,262.50. ICICI Bank Ltd. contributed the most to the index decline and had the largest move, decreasing 2.3%. In early trading, 28 of 50 shares fell, while 22 rose.

The broader indices outperformed their larger peers with the S&P BSE MidCap shedding 0.3% and S&P BSE SmallCap falling 0.6%. Barring S&P BSE Metal and S&P BSE Basic Materials, all the other 17 sectoral indices compiled by the BSE Ltd. declined with S&P BSE Information Technology index down nearly 2%.

The market breadth was skewed in the favour of bears. About 959 stocks advanced, 1,405 declined and 103 remained unchanged.

• HCL Technologies Ltd. has 3.95 million shares change hands in a pre-market trade

• Details of the buyers and sellers are not immediately known

Source: Bloomberg

Wipro Ltd. and Telefonica announced an agreement to initiate digital transformation journey. Wipro would aid Telefonica by continuous integration, deployment and testing in the company's German and Brazilian markets.

Wipro will build the solution over opensource tools and open to evolution, to allow rapid adaption to future technological evolution. Wipro will help in automating Telefonica's associated network operations and transition to the telco cloud.

Source: Exchange Filing

The Indian rupee may extend losses amid concerns of foreign outflows as local stocks remain under pressure and a stronger dollar weigh on emerging Asian currencies. Bond yields may rise, tracking an overnight jump in U.S. yields.

• USD/INR rose 0.2%, the biggest gain since Nov. 10, to 74.4025 on Monday

• 10-year yields up 1bp at 6.35% on Monday

• State-run banks bought Rs 534 crore of sovereign bonds on Nov. 22: CCIL data. Foreign banks bought Rs 144 crore of bonds

Source: Bloomberg

Cadila Healthcare Ltd. has submitted the New Drug Application to India's drug regulator for Desidustat, used for treatment of anaemia in patients with chronic kidney disease.

• Chronic Kidney Disease is a serious progressive medical condition with an estimate 114 million people affected in India.

• The oral drug Desidustat has shown positive data in Phase 3 trails with patients with the disease, not on dialysis and on dialysis.

• The data on this drug has been published in various peer-reviewed journals so far

Source: Exchange Filing

• Burger King India rated 'new outperform' at Credit Suisse; price target: Rs 215

• Escorts raised to 'buy' at Canara Bank; price target: Rs 2,028

Source: Bloomberg

MobiKwik could delay IPO by 2-3 months due to lack of demand from foreign and domestic institutional investors, Economic Times reports, citing unidentified people.

• IPO valuation has dropped by as much as 30%-40%

• MobiKwik spokesperson says company had received regulatory approvals for its IPO and will go public at “an appropriate time”: ET