Sensex, Nifty End Higher Buoyed By Reliance's Best Gain In Nearly 2 Months

India's stock benchmarks ended higher at closing, buoyed by a resurgent Reliance Industries Ltd. that erased all decline endured after its deal with Aramco collapsed. This is only the second time in the last seven sessions that the benchmarks have risen.

The S&P BSE Sensex gained 0.78% to 58,795.09. The 30-stock gauge almost rose as much as 0.96% during the day. The NSE Nifty 50 index also rose by 0.70% to 17,536.25.

The S&P BSE Midcap index almost mirrored its larger peer's gains at 0.7% while S&P BSE SmallCap index outperformed, adding nearly 0.87%.

Only four of the 19 sectoral indices compiled by the BSE Ltd. declined, while S&P BSE Energy ended the day with a 4.47% rise.

The market breadth was skewed in the favour of bulls at close. About 2,315 stocks advanced, 1,157 declined and 119 remained unchanged.

The board of JSW Energy Ltd. has approved the re-organisation of its renewable and thermal businesses. All existing and upcoming renewable energy businesses will be housed under JSW Energy Neo Ltd, which will be a wholly owned subsidiary of the company.

"It will streamline renewable portfolio and facilitate fund-raising and unlocking value for shareholders," the company said in a statement.

The company further said that JSW Neo Energy Ltd. will be the vehicle for JSW Energy to drive the company’s growth plans in renewable energy – across generation, energy storage and green hydrogen. The company’s operational hydro projects (Karcham: 1,091 MW, and Baspa II 300 MW) and all upcoming renewable energy projects will be housed in subsidiaries under JSW Neo Energy.

Shares of Reliance Industries Ltd. gained as much as 6.2%, the most in nearly two months, to reach their level before the company scrapped a deal to sell Saudi Arabian Oil Co. a stake in its oil-to-chemicals unit.

The shares fell 4.9% through Wednesday from Thursday’s close after the company ended a plan announced more than two years ago to sell a 20% stake in the unit to Aramco.

Bharti Airtel Ltd.'s long-term issuer default rating was affirmed by Fitch at BBB-.

• Senior Unsecured Debt Rating was affirmed by Fitch at BBB-

• Outlook remains negative

Shares of Mahindra & Mahindra Financial Services Ltd. fell for the eighth straight day, making it the longest loss streak for the scrip in seven years.

Axis Bank Ltd. fell for the tenth day in a row, its longest losing streak in 16.5 years. It has now lost 9.4% during the streak, compared to the S&P BSE Sensex's 2.8% fall.

ICICI Prudential Ltd.'s stock too fell for the eighth day, while Mahanagar Gas Ltd., SBI Cards and Payment Services Ltd. and Muthoot Finance Ltd. continued their downward trajectory for the seventh day in a row.

Shares of Auriopro Solutions Ltd. gained after the company won an order to be the the system integrator for implementing IoT-based integrated bus ticketing system on a 'Build Own Operate and Transfer' model for the by the Uttar Pradesh State Road Transport Corporation (UPSRTC).

It said that the project is expected to be worth more than Rs 60 crore, over 5 years, with the minimum guaranteed revenue.

Bharti Airtel Ltd., in an exchange filing, said it has conducted India’s first 5G trial in the 700 MHz band in partnership with Nokia.

The demo conducted using 5G standalone mode, achieves the highest broadband coverage of 40 Km between two 5G test sites.

The trial, conducted on the outskirts of Kolkata, "underscores 5G’s potential to take mobile broadband coverage to even the remotest corners of India," it said.

India's benchmark indices pared losses and continued their upward trajectory, with the S&P BSE Sensex gaining 0.74% to 58,773.75 and NSE Nifty 50 rising by 0.64% to 17,526.35.

Reliance Industries Ltd. contributed the most to the index gain, increasing 5.3%. In mid-day trading, 24 of 50 shares gained, while 26 fell.

The broader indices were in line with their gains relative to their larger peers with the S&P BSE MidCap gaining 0.29% and S&P BSE SmallCap too furthering about 0.66%. The S&P BSE LargeCap gained about 0.57%.

Barring S&P BSE Auto, Finance, Capital Goods, Power and FMCG, all 14 other sectoral indices compiled by the BSE Ltd. gained with S&P BSE Energy index up more than 3.77%.

The market breadth was skewed in the favour of bulls. About 1,980 stocks advanced, 1,175 declined and 145 remained unchanged.

Maturities across the India sovereign yield curve were little changed in Thursday morning trading.

• The 5-year yield was little changed at 5.696%.

• The 10-year yield was little changed at 6.37%.

• The 18-year yield remained unchanged at 6.829%.

• The 5-year-10-year yield spread was 67.4bps, vs previous close 67.1bps.

Shares of Reliance Industries Ltd. rose 4.5%, the most in six months after the company announced plans to move its gasification unit to a wholly-owned subsidiary.

Trading volume was triple the average for this time of the day and the stock was the best performer among its peers.

Hindustan Petroleum Corporation Ltd. Chairman Mukesh Kumar Surana, at an event, said that India's oil demand won't peak before 2040.

He also said that India's diesel demand will reach pre-virus levels by March.

Shares of Torrent Pharmaceuticals Ltd. gained 6.2%, the most in at least 16 months. Trading in the company's call options was triple the average. Trading volume was 5x the average for this time of day.

The stock was the best performer among peers.

Eicher Motors' Royal Enfield, the global leader in the mid-size motorcycle segment (250 - 750cc), today announced commencement of operations of its local assembly unit and completely knocked down (CKD) facility in Thailand, one of the world’s largest automobile manufacturing hubs.

India’s rupee is lower amid outflows from the local stocks and after the dollar strengthened on Wednesday. Sovereign bonds are steady.

• USD/INR up 0.2% to 74.5.

• India’s 10-year yields are steady at 6.37%; 5-year yields are also unchanged at 5.70%.

The initial public offering of Tega Industries Ltd., a Kolkata-based mining company, is set to open on Dec. 1 and close on Dec. 3.

According to its draft red herring prospectus, the offer consists of a pure offer for sale of upto 13.67 million shares by its existing shareholders and promoters.

Tata Consultancy Services Ltd. bagged a contract from South32, a global mining and metals company, to enhance its IT operating model and provide application and infrastructure services critical to its global operations, strengthening its operational resilience and business agility.

Under the new contract, management of critical infrastructure that was previously managed by multiple service-providers has been consolidated with TCS, driving end-to-end accountability, it said in an exchange filing.

Amazon approached the apex court against Delhi High Court's direction to CCI to take a call on revoking 2019 approval for Future Coupons-Amazon transaction.

The petition by Amazon was mentioned by Senior Advocate Amit Sibal before the Chief Justice of India today. It will now be heard on Nov. 29.

TTK Prestige Ltd. acquired a 51% stake in Ultrafresh Modular Solutions, a company in the business of modular kitchens, for Rs 30 crore.

"Ultrafresh has developed infrastructure for design, development, sourcing and sale and marketing of modular kitchens. Thus, this investment has significant synergies with that of the business of TTK Prestige. It is expected to serve the long-term vision and growth of TTK Prestige," it said in an exchange filing.

Shares of GlaxoSmithKline Pharmaceuticals Ltd. rose 7.6%, the most in at least 19 months. Trading volume was quadruple the average for this time of day.

The stock was the best performer among its peers.

India's Oil Secretary Tarun Kapoor, speaking at ET EnergyWorld Conclave, said that the government wants refineries to shift to gas from naphtha.

Key pointers from his address:

• India has plan in place to boost gas share in energy to 15%.

• India working to provide gas to power at stable price.

The Board of Reliance Industries Ltd. announced its decision to implement a scheme of arrangement to transfer its gasification project at Jamnagar into a wholly-owned subsidiary.

"The scheme will also enable Reliance to evaluate unlocking the value of syngas, with a collaborative and asset-light approach involving induction of investors in the gasifier subsidiary and capturing value of upgradation in Reliance through partnerships in different chemical streams," it said in an exchange filing.

Brokerage Dolat Capital Market Ltd. initiated coverage on FSN E-Commerce Ventures Ltd. with a 'sell' rating and a target price of Rs 1,600, implying a potential downside of 29%.

Key pointers:

• Over the trailing 5-7 years many structural positives aligned for a conducive runway of growth such as smartphone penetration, affordable data, rapid digital adoption and Nykaa created a formidable position in the online beauty and personal care space.

• We see Nykaa’s business mindset similar to Dmart since both are inventory led models, in a large addressable market with high growth opportunity, strong recall and focus on profitability.

• However, current valuations seem too rich for our comfort, howsoever long we may stretch the timeline.

• Implied expectations leave limited room to err on execution and growth trajectory of the space. The risks of increased competition from some of the large players remains key in our view. Stock supply is another risk.

Several of the biggest investors in Paytm’s record-breaking initial public offering added to their stakes in the Indian fintech giant after shares plunged by as much as 41%, according to people familiar with the matter.

BlackRock Inc. and Canada Pension Plan Investment Board were among so-called anchor investors in the IPO that bought more Paytm shares on Tuesday and Wednesday, the people said, asking not to be identified discussing private information.

ICICI Bank Ltd. contributed the most to the index decline and had the largest move, decreasing 1.9%.

In early trading, 36 of 50 shares fell, while 14 rose.

Shares of Siemens India Ltd. dropped as much as 7.8%, the most in 18 months, after the company's Q4 net income missed analyst estimates.

It was the worst performer on the S&P BSE 100, S&P BSE 200, NSE Nifty 200 indices.

Siemens Q2FY22 (Consolidated, QoQ)

• Revenue up 46% at Rs 4,296.1 crore vs Rs 2,934.2 crore

• Net profit at Rs 321.6 crore vs Rs 138.9 crore

• Ebitda up 82% at Rs 447.2 crore vs Rs 246 crore

• Margins at 10.4% vs 8.4%

• Recommended a dividend of Rs 8 per equity share

India's stock benchmarks were little changed, as gains in oil and gas and energy stocks were offset by losses in banking and consumer durables stocks.

The S&P BSE Sensex traded flat at 58,366.82. The NSE Nifty 50 index was also largely unchanged at 17,433.35.

The broader indices almost mirrored their larger peers. Thirteen of the 19 sectoral indices compiled by the BSE Ltd. rose with S&P BSE Energy and S&P BSE Realty gaining 1%.

The market breadth was skewed in the favour of bulls. About 1,641 stocks advanced, 798 declined and 92 remained unchanged.

The rupee may open lower amid outflows from local stocks and after the dollar strengthened on Wednesday.

• India plans some tax exemptions in its budget due February, possibly the final step required for the nation’s sovereign bonds to be included in global indexes, according to people familiar with the matter.

• Finance Minister Nirmala Sitharaman will propose to exempt Euroclear settlements from tax, the people said, asking not to be identified as the plans are private. If lawmakers approve the budget on schedule, Indian bonds could be eligible for index inclusion by the end of March, they said.

SIS Ltd. has 26.3 lakh shares or 1.79% equity change hands in a bunch trade.

Buyers and sellers were not immediately known.

Twin Star Holdings Ltd., Vedanta Netherlands Investments B.V. and Vedanta Resources Ltd. signed three separate facility agreements on Nov. 22 to borrow a total of $800 million, according to an exchange filing.

• Twin Star will borrow $400 million, Vedanta Netherlands will seek $150 million and Vedanta Resources will avail a facility of $250 million.

• Standard Chartered Bank is the arranger as well as lender on all the three facility agreements.

• On Nov. 23, Vedanta Group firms bought 138 million Vedanta Ltd. shares at Rs 349.7 a share.

Sports tech startup Dream Sports secured $840 million at a $8 billion valuation from investors led by Falcon Edge, DST Global, D1 Capital, Redbird Capital and Tiger Global.

Existing backers TPG Capital and Footpath Ventures also participated.

The Reserve Bank of India’s forex intervention strategy is likely to be guided more by moves in the Chinese yuan rather than the U.S. dollar alone, The Economic Times reports, citing people familiar with the matter it didn’t name.

• The RBI is said to have informally aimed at a benchmark level of 11.50 for CNY/INR, the report said, adding any drop from that level would trigger intervention given concerns over export competitiveness.

• Some traders have been asked about option trades linked to yuan by RBI, the report said, citing unnamed market sources.

• The RBI didn’t respond on the matter, the report said.

• The objective is to maintain export competitiveness at a time when India is trying to boost its manufacturing.

• CNY/INR up 0.1% to 11.645 on Thursday.

Asian stocks were steady on Thursday and the dollar held near a 16-month high as traders weighed Federal Reserve minutes that flagged the risk of a faster reduction in stimulus to fight elevated inflation.

Equities rose in Japan and Australia but fell in South Korea, where the central bank raised interest rates. U.S. futures climbed after the S&P 500 and tech-heavy Nasdaq 100 edged up.

India’s SGX Nifty 50 Index futures for November delivery, to expire today, fell 0.2% to 17,382.00, while MSCI Asia Pacific Index little changed. The NSE Nifty 50 Index fell 0.5% on Wednesday to 17,415.05.

Siemens India may react as the company reported quarterly results after the market closed on Wednesday. Foreign investors sold net Rs 4,660 crore of stocks on Tuesday, according to NSDL website.