Sensex, Nifty Slip To Three-Month Low On New Virus Strain Concerns

India's stock benchmarks slipped further at closing, considerably paring all gains made in yesterday's session. The indices have logged their worst weekly drop since January.

The S&P BSE Sensex declined 2.87% to 57,107.15. The 30-stock gauge even fell below 57,000 briefly. The NSE Nifty 50 index also fell by 2.91% to 17,026.45.

The S&P BSE Midcap index bled the most, falling by 3.2%, while its larger peer in S&P BSE Largecap too fell by almost 3%. The S&P BSE SmallCap index, too, fell 2.6%.

All but one sectoral index compiled by the BSE Ltd. declined, with S&P BSE Healthcare the only gainer, amid concerns of a new virus variant emerging out of South Africa. The S&P BSE Realty ended the day with a 6.4% decline.

The market breadth was skewed in the favour of bears at close. About 1,065 stocks advanced, 2,245 declined and 105 remained unchanged.

Shares of Shriram Transport Finance Co. Ltd. dropped 7.6%, the most in seven months.

Shares declined to Rs 1,450.8 apiece from RS 1,570.9. The stock was the worst performer among its peers.

Kolkata-based conglomerate ITC Ltd., in an exchange filing, announced that it will acquire a 16% stake in Mother Sparsh, a premium ayurvedic and natural personal care start-up in the D2C space for Rs 20 crore.

"Recognising the significant potential of naturals and Ayurveda, ITC has taken this strategic step forward to invest in this segment. Over the last few years, ITC has been engaging with the start-up ecosystem whilst also exploring innovative distribution channels," the company said in a statement.

Shares of Divi's Laboratories Ltd. gained amid a rise in healthcare and tourism stock in India. It rose 5.7%, with the company's call options and trading volume at triple the average.

Shares of Muthoot Finance fell for the eighth day in a row, with the company now on track for the longest losing streak since the period ended Aug. 1, 2013. It has lost 15% during the streak.

Shares of KEC International Ltd. were lower for the sixth day, on track for the longest losing streak since March 25, 2020. It has lost 10% during the streak, falling 5.2% today.

Shares of Axis Bank Ltd. traded in the red for the eleventh day, on track for the longest losing streak since the lender went public in 1998.

Axis Bank has lost a total of 11% in the streak, outpacing S&P BSE Sensex's 5.1% fall.

Shares of Cholamandalam Investment & Finance Co. Ltd. declined 7.9%, the most since Aug. 27. The stock was the worst performer among its peers and outpaced S&P BSE Sensex's 2.4% fall.

Shares of Abbott India Ltd. gained 4.5%, the most in seven weeks. Trading the company's call options was nine times the average. Trading volume was triple the average for this time of the day.

The shares increased to Rs 20,196.6 from Rs 19,317.9.

Shares of Lal PathLabs Ltd. gained 6.5%, the most in nine months. Trading in the company's call options was triple the average. Trading volume was triple the average for this time of the day.

The stock was the best performer among its peers.

Oil & Natural Gas Corp. Ltd. reached out to global exploration firms for developing high-pressure and high-temperature fields, and 11 have shown interest, Exploration Director Rajesh Kumar Srivastava said at the ETEnergyworld Gas Conclave.

• ONGC is engaging in technical discussions with 4 to 5 of the firms, he said at the virtual event.

• The state-run producer is also looking at entering into production enhancing contracts for its medium-sized fields.

• ONGC is working on models to rope in oil services cos as technical partners for increasing production.

• It’s also looking at bidding out its marginal fields for unlocking oil and gas reserves.

• ONGC’s action play 2023-24 aims to increase oil output by ~20% to 26m tons and gas by ~30% to 32 Bcm.

Shares of Bandhan Bank Ltd. fell as much as 8%, the most in seven months. The share price declined to Rs 290 apiece from Rs 315.05.

Shares of Aurionpro Solutions Ltd. hit their upper price band of 5% after the company announced that it it acquiring a majority stake in Toshi Automatic Systems Pvt. Ltd. for around Rs 14 crore.

"The acquisition will allow Aurionpro to further consolidate its position as the only integrated player in Automatic Fare Collection (AFC) & transit solutions space in India. This acquisition will also provide Aurionpro with substantial cost advantage, reduced supply chain risks & high scalability in the business and will also help in enhancing data center business, especially with fire safety gates and junction box that Toshi manufactures," it said in a statement.

HDFC Bank Ltd. has around 12.5 lakh shares change hands in a bunch trades. Buyers and sellers were not immediately known.

Source: Bloomberg

Shares of JSW Steel Ltd. shed 5.6%, the most in nine weeks.

The stock was the worst performer among peers, outpacing S&P BSE Sensex's 2.3% loss.

India's benchmark indices maintained their downward trajectory, with the S&P BSE Sensex and NSE Nifty 50 both declining by about 2.3% to 57,443.60 and 17,136.85 respectively. This comes amid a backdrop of heightened concerns over the new virus strain that's rocking global markets.

Reliance Industries Ltd., JSW Steel Ltd. and Tata Motors Ltd. contributed the most to the index decline. In mid-day trading, 44 of 50 shares decline, while only six gained.

The broader indices outperformed their larger peers with the S&P BSE MidCap falling 2.25% and S&P BSE SmallCap too declining 1.41%. The S&P BSE LargeCap fell about 2.38%.

With the exception of S&P BSE Healthcare, all 18 other sectoral indices compiled by the BSE Ltd. fell with S&P BSE Realty and Metal indices falling more than 4%.

The market breadth was skewed in the favour of bulls. About 1,078 stocks advanced, 2,111 declined and 132 remained unchanged.

Airlines and other travel stocks across Asia were among the biggest decliners after reports about the new coronavirus strain detected in South Africa.

• The variant, currently known as B.1.1529, carries an unusually large number of mutations and is “clearly very different” from previous incarnations, South African scientists said.

• Stocks dropped broadly across Asia as worries about the variant were compounded by thinner liquidity in markets as traders were away for Thanksgiving celebrations.

• In India, InterGlobe Aviation Ltd. dropped 7.5%, the most since March; Spicejet Ltd. -5.5%; hospitality company Indian Hotels Ltd. -7.4%, EIH Ltd. -4.4%, Lemon Tree Hotels Ltd. -5.6%, Chalet Hotels Ltd. -7.4%.

Shares of Bharat Petroleum Corp. Ltd. shed 4.4%, the most in 10 weeks. Trading volume for the stock was double the average for this time of the day. Shares declined to Rs 382.4 apiece, lower than any close since Jan. 27. The stock was the worst performer among its peers.

The Indian rupee is headed for its worst weekly decline in more than a month amid outflows from local stocks and a stronger dollar. Bonds gain, tracking U.S. Treasuries, amid a riskoff due to the new coronavirus strain.

• USD/INR rose 0.3% to 74.72 on Friday, up 0.7% so far this week, the biggest gain since the week ended Oct. 8.

• Foreign investors have sold $2 billion of local equities this week; provisional data also shows Rs 2,300 crore sale on Thursday.

Shares of Dr Reddy's Laboratories Ltd. surged 3.8%, the most in seven months, as diagnostics and pharma stocks gained amid concerns over a new coronavirus variant.

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

Shares of Alkem Laboratories Ltd. surged 4.9%, the most in 16 months, as healthcare stocks gained amid renewed concerns over a new coronavirus variant.

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

Shares of InterGlobe Aviation Ltd. fell nearly 8%, the most in 11 months after concerns over the new coronavirus strain led to a global selloff.

Shares decliend to Rs 1,908.2, lower than any close since Sept. 13. The stock was the worst performer among its peers, beating S&P BSE Sensex's 2.4% fall.

Most yields along the India sovereign yield curve fell, with 10-year bonds moving the most in Friday morning trading.

• The 5-year yield fell 2.6bps to 5.667%.

• The 10-year yield fell 3.7bps to 6.33%.

• The 30-year yield fell 3.5bps to 6.877%.

• The 5-year-10-year yield spread was 66.3bps, vs previous close 67.4bps.

Shares of United Breweries Ltd. fell as much as 5.1%, the most in seven months. The shares declined to Rs 1,487.1, lower than any close since Aug. 31.

The stock was the worst performer among its peers, outpacing S&P BSE Sensex's 2.4% drop.

Shares of The Indian Hotels Co. Ltd. declined nearly 9%, the most in 19 months amid worries over a new strain of the coronavirus. Trading volume was double the average for this time of the day.

Shares declined to Rs 187.3, lower than any close since Oct. 6. The stock was the worst performer among its peers.

Shares of diagnostic companies and drugmakers rallied after scientists detected a new coronavirus strain, that raised caution across global markets.

• Dr Lal Pathlabs Ltd. advanced as much as 6.6%, Vijaya Diagnostic Centre Ltd. added 5.3%, Thyrocare Technologies Ltd. +5.9%, Metropolis Healthcare Ltd. +8.7%

• S&P BSE Healthcare Index rose as much as 2.3% and was the best performer among 19 sectoral indexes compiled by BSE

• Among pharma companies, AstraZeneca Pharma India Ltd. +8%, Cipla Ltd. +6.4%, Pfizer India Ltd. +5.7%, Dr Reddy’s Laboratories Ltd. +3.4%, Aurobindo Pharma Ltd. +3.3%, Lupin Ltd. +2.7% and Glenmark Pharmaceuticals Ltd. +4.3%

Shares of Bata India Ltd. declined 5.5%, the most in seven months. The shares declined to Rs 1,925.5, lower than any close since Oct. 6.

The stock was the worst performer among its peers.

The board of Indian Metals & Ferro Alloys Ltd. has approved the issue of bonus equity shares in the ratio of one new bonus share of Rs 10 apiece for every existing qquity Shares of Rs 10 each held by the shareholders of the company as on the record date.

The S&P BSE Sensex slipped 1.8% to 57,741.84 as of 10 a.m. in Mumbai, taking its losses to 3.2% so far since Monday and staying on track for its biggest weekly drop since February. The NSE Nifty 50 Index also declined by a similar magnitude on Friday. Reliance Industries Ltd., down 2.3%, was the biggest drag on both measures.

Out of the 30 shares in the Sensex index, 28 fell and 2 gained. All but one of 19 sub-indexes compiled by BSE Ltd. slipped, led by a index of realty companies.

While researchers are yet to determine whether the new virus variant is more transmissible or lethal than previous ones, authorities around the world have been quick to act. The U.K. and Israel temporarily banned flights from South Africa and five neighboring countries as a precautionary measure.

This comes on top of market concerns over higher inflation and a faster-than-expected rollback of easy monetary policy by central banks.

ADVANCERS

• Dr Reddy’s Laboratories +2.4%

• Sun Pharmaceutical Industries +0.7%

DECLINERS

• Bajaj Finserv -3.5%

• Bajaj Finanace -3.3%

• Tata Steel -3%

Shares of Tarsons Products Ltd. gained as much as 22% on debut after listing at a meagre premium.

The stock saw an intraday high of Rs 808 and an intraday low of Rs 634 thereafter.

Shares of Tarsons Products Ltd. were priced at Rs 700 apiece in pre-market discovery, compared to its IPO share price of Rs 662.

The company’s IPO subscribed over 77 times.

Source: Bloomberg

Asian stock indices slumped today as a spike in coronavirus cases around the world, as well as concerns about a new strain of the virus found in South Africa, weighed on investor sentiment.

Investors are worried that the surge in cases globally could prompt authorities to impose lockdowns to limit the spread of the virus, which could derail the nascent economic recovery.

Europe is already witnessing a surge in COVID-19 cases with Austria imposing a nationwide lockdown, while Germany has warned the public of strict measures to curb the spread of the virus.

Shares of Cipla Ltd. rose as much as 4%, the most in 17 weeks. Trading volume was five times the average for this time of day.

• The stock was the best performer among its peers.

Shares of Pfizer Ltd. rose as much as 5.1% as pharmaceutical stocks listed on exchanges gained amid a sea a red. Trading volume for the stockwas triple the average for this time of day.

The stock was the best performer among its peers.

• The NSE Nifty 50 Index opened 1.4% lower at 17,296.85 in Mumbai.

• Reliance Industries Ltd. contributed the most to the index decline, decreasing 1.6%. Tata Motors Ltd. had the largest drop, falling 3.2%.

• In early trading, 46 of 50 shares fell, while 4 rose.

Shares of Tata Teleservices gained as much as 5% after 10 lakh shares of the company were exchanged in a bunched trade.

Shares of One97 Communications Ltd., the operator of payments platform Paytm, fell as much as 7.7% after three days of gains.

The company had announced its earnings call yesterday, scheduled for Saturday, Nov. 27.

India's stock benchmarks opened lower, as gains in pharma stocks were offset by losses in banking and auto stocks.

The S&P BSE Sensex traded around 1.4% lower at 57,958.37, while the NSE Nifty 50 index was also down by a similar magnitude to 17,287.35.

The broader indices and their larger peers all took a plunge alike, with the S&P BSE LargeCap falling by over 1.27%. All but one of the 19 sectoral indices compiled by the BSE Ltd. fell with S&P BSE Healthcare being the only exception. S&P BSE Realty fell as much as 2.27%.

The market breadth was skewed in the favour of bears. About 906 stocks advanced, 1,605 declined and 68 remained unchanged.

Shares of Greenlam Industries Ltd. soared in pre-market trade after the company's board of directors will consider and approve the proposal to split the face value of equity shares of the company from face value of Rs 5 per share to face value of Re 1 per share.

India’s largest mortgage lender, Housing Development Finance Corporation Ltd., announced plans on Thursday for a bond that could be its largest ever, as it joined a rush of issuers seeking to lock in funds ahead of a central bank policy meeting in Dec. 8.

• HDFC plans to raise up to Rs 10,000 crore ($1.3 billion) through a bond auction on Monday.

• If it reaches that target, it would be its largest outstripping the size of the 580 notes it has sold according to Bloomberg compiled data. The next largest was an Rs 9,000 crore sale in Nov. 2018

• The HDFC deal was among a wave of deal plans that emerged Thursday, including another bumper deal by a mortgage lender - an LIC Housing Finance plan to raise up to Rs 6,000 crore.

Blackstone Inc., BlackRock Inc., and Abu Dhabi Investment Authority are among global investors that have held preliminary discussions regarding anchor book allocations in the proposed share sale of LIC of India, the Economic Times reported.

Asian stocks, U.S. Treasury yields and crude oil fell on Friday amid caution over a new coronavirus strain and concerns over faster Federal Reserve policy tightening.

Shares fell in Japan and Australia and wavered in South Korea, while S&P 500 futures retreated. Scientists in South Africa are studying the recently identified variant amid fears it could spread internationally. The rand weakened beyond 16 per dollar for the first time in a year.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index's performance, fell 0.8% to 17,435.5, while MSCI Asia Pacific Index declined 1.2%. The NSE Nifty 50 Index gained 0.7% on Thursday to 17,536.25.

Tarsons India to debut after IPO. Yes Bank has partnered Amazon Pay and AWS for UPI payments, while GMR Infra has started work on second New Delhi Airport ahead of key polls. Reliance Industries' stock may react after Mint reported that the conglomerate may separate parts of its oil-to-chemicals unit.

Foreign investors sold net Rs 8,050 crore of stocks on Wednesday, according to NSDL website.