Sensex, Nifty Snap Winning Streak Dragged By HDFC Twins, Britannia

India's stock benchmarks snapped the two-day winning streak, as losses in metal, fmcg, consumer durables and financial stocks offset the gains in auto stocks, primarily driven by Mahindra & Mahindra's surge after Q2 beat.

The S&P BSE Sensex index fell 0.19% to 60,433.45. The NSE Nifty 50 Index declined by similar magnitude to 18,044.25. HDFC Bank Ltd. contributed the most to the index decline, decreasing 1.8%. Britannia Industries Ltd. had the largest drop, falling 2.6%. Today, 24 of 50 shares fell, while 26 rose.

The broader indexes outperformed their larger peers with the S&P BSE MidCap index and the S&P BSE SmallCap index gaining well over 0.6%. Fourteen of the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Auto and Industrials indexes rising over 1.25%

The market breadth was skewed in the favour of bulls. About 2,006 stocks advanced, 1,305 declined and 168 remained unchanged.

• Shares of Fairchem Organics Ltd. fell over 5% after 1.3 million shares (10% of equity) changed hands in bunched trade.

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

• Iran lifts seasonal ban imposed in August on rice exports, 12 days ahead of schedule on Tuesday, according to semi-official Iranian Students' News Agency.

• Ban was originally scheduled to be lifted on November 21.

• Ban was introduced to support domestic producers.

• Iran bought 34% of India's basmati rice exports in 2018-19

Source: Bloomberg

• India all set to achieve services export target of $1 trillion by 2030

• India has the potential to become the top services exporter in the world.

• Sectors like tourism, hospitality which suffered due to Covid-19, showing revival signs

• India became the seventh largest services exporter in the world in 2020.

Piyush Goyal, Minister of Commerce & Industry at the Services Export Promotion Council - Global Services Conclave 2021

Source: Press Information Bureau

JSW Steel reported production for October of 1.43 million tonnes vs 1.34 million tonnes YoY

• October rolled long products production 3,34,000 tonnes, up 11% YoY

• October rolled flat production production at 1.05 million tonnes, up 7.1% YoY

Commentary & Context

• Crude steel production grew by 6% for October.

• Average capacity utilisation for the month at 95%

Of the 33 analysts tracking the company, 20 maintained 'buy', seven maintained 'hold' and six maintained 'sell' recommendations.

SBI Life Insurance Co. is higher for the sixth straight day, on track for the longest winning streak since the period ended Jan. 13, 2020.

SBI Life has gained a total of 5.4% during the streak while the S&P BSE Sensex Index increased 1.8%.

Of the 38 analysts tracking the company, 36 maintained 'buy' and two maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 19.2%

Electrical contacts manufacturer Modison Metals Ltd. has approved its entry into MoU into RENERA and LDrive LLC (L-Charge) for assembly and manufacturing of battery energy storage system and EV charging infrastructure respectively.

The battery energy storage technology enables energy storage for emergency power supply, renewable energy resources and smoothing of load demand on the electricity grid.

Source: Exchange filing

Shares of J Kumar Infraprojects Ltd. rose nearly 3.7% in intraday trade to Rs 187.95 after the company reported sequential growth in net income and revenue in the second quarter.

September quarter Results (Standalone, QoQ)

• Net profit at Rs 41.06 crore vs Rs 32.10 crore

• Revenue at Rs 771.98 crore vs Rs 675.06 crore

• Total costs at Rs 723.27 crore vs Rs 637.50 crore

• Other income at Rs 5.56 crore vs Rs 5.15 crore

All the six analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 42.8%.

• Share price crossed above 50-day simple moving average, indicating potential upward price momentum.

• Trading volume on the stock was 8.3 times the 30-day average volume for this time of the day.

Shares of FSN E-Commerce Ventures, the company that operates beauty startup Nykaa will start trading on Wednesday, according to a spokesman for BSE Ltd.

Source: Bloomberg

• Kamath will advise KKR on current and future investments in Indian companies.

• Kamath's appointment is effective immediately.

• Kamath was appointed as chairman of National Bank for Financing Infrastructure and Development last month.

Source: KKR Statement

India's stock benchmarks declined, dragged by losses in metal, fmcg and banking stocks.

The S&P BSE Sensex shed 0.3% to 60,361.84. The NSE Nifty 50 index also declined by similar magnitude to 18,025.70. HDFC Bank Ltd. contributed the most to the index decline, decreasing 1.5%. Britannia Industries Ltd. had the largest drop, falling 2.9%. In midday trading, 27 of 50 shares fell, while 23 rose.

The broader indexes outperformed their larger peers with the S&P BSE MidCap and the S&P BSE SmallCap index gaining 0.7%. Thirteen of the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Industrials rising over 1%

The market breadth was skewed in the favour of bulls. About 1,967 stocks advanced, 1,237 declined and 163 remained unchanged.

Shares of MRF Ltd. shed nearly 1.7% in intraday trade to Rs 78,609.05 apiece after the company reported net income for the second quarter that missed average analyst estimate.

September Quarter (Consolidated, QoQ)

• Net profit at Rs 189.06 crore vs Rs 165.58 crore (Bloomberg Consensus Estimate: Rs 244 crore)

• Revenue at Rs 4,907.81 crore vs Rs 4,183.96 crore (Estimate: Rs 4,690 crore)

• Total costs at Rs 4,741.42 crore vs Rs 4,054.24 crore

• Other income at Rs 88.82 crore vs Rs 92.62 crore

Of the 13 analysts tracking the company, five maintained 'buy', three maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 0.8%

Shares of JBM Auto Ltd. rose 10.27% in intraday trade to Rs 724.7 apiece after the company bagged prestigious order for supply of 200 Air Conditioned fully built low floor electric buses of 12 metre length for Delhi Transport Corporation. The order comes under the Government of India flagship Fame II (Faster Adoption & Manufacturing of Electric Vehicle) Policy.

• Trading volume on the stock is 6.6 times the 30-day average volume for this time of the day.

• The relative strength index on the stock was 73, suggesting it may be overbought.

• The company will report the earnings for the September quarter on Thursday.

• Future Retail has taken fresh legal steps to salvage a proposed rescue by Reliance Industries that’s being held up by legal challenges from erstwhile partner Amazon.

•  The Mumbai-listed retailer has filed a new petition in India’s Supreme Court challenging the Delhi High Court’s refusal to allow steps for the company’s asset sale deal with Reliance Industries Ltd., according to updates on the top court’s website on Monday.

• The country’s top court is scheduled to hear earlier petitions by Future Group firms and Amazon on the subject of the proposed takeover on November 11.

Source: Bloomberg

Praj Industries Ltd. and Indian Oil Corporation Ltd. inked an MoU to fast-track India's transition to cleaner energy sources. The two companies will explore avenues such as production of Alcohol to jet (ATJ) fuels, 1G & 2G ethanol, compressed bio-gas and related opportunities in Biofuels industry, according to an exchange filing by Praj Industries.

Praj and Indian Oil would work towards forming 50:50 JV and identify partners to form SPVs under the alliance to facilitate sales and marketing of biofuel products and to set up biofuel production facilities.

At present, Praj is executing India's first 2nd generation ethanaol plant for Indian Oil in Panipat facility. The company is also construction a water and waste water treatment plant for Indian Oil's Dumad petrochemical complex.

• Sun TV raised to 'accumulate' from 'reduce' at Elara Securities India, price target: Rs 675

• Angel Broking rated 'new buy' at Motilal Oswal Securities; price target: Rs 1,750

Source: Bloomberg

• The Indian rupee gains for a seventh day amid foreign inflows for the nation’s biggest share sale. Benchmark bonds rise.

• USD/INR falls as much as 0.2% to 73.8688

• The Paytm IPO inflows could take the rupee to 73.80 but once the inflows stop, expect mid month demand and oil buying to take the currency lower, says Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors

Source: Bloomberg

• Equitas Small Finance Bank Ltd. has 2.8 million shares change hands in a bunched trade.

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

• Most yields along the India sovereign yield curve fell, with 13-year bonds moving the most in Tuesday morning trading.

• The 5-year yield rose 0.6bps to 5.674%

• The 10-year yield fell 0.5bps to 6.296%

• The 20-year yield remained unchanged at 6.982%

• The 5-year-10-year yield spread was 62.2bps, vs previous close 63.3bps

Source: Bloomberg

• Adani Power Ltd. has 2.1 million shares change hands in a bunched trade.

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

Shares of Sobha Ltd. rose nearly 11% in intraday trade to Rs 980 apiece after the company reported net income for the second quarter that beat the average analyst estimate.

September Quarter Results (Consolidated, YoY)

• Revenue up 57% at Rs 819.10 crore Vs Rs 522 crore (Bloomberg consensus estimate: Rs 667 crore)

• Net profit up 1.98 times at Rs 48.30 crore Vs Rs 16.20 crore (Estimate: Rs 35.05 crore)

• Ebitda up 67% at Rs 256 crore Vs Rs 153.50 crore

• Margin at 31.3% Vs 29.4%

• Approved raising up to Rs 140 crore via issuance of NCDs on private placement basis.

Of the 20 analysts tracking the company, 15 maintained 'buy', three maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 18.7%.

Trading volume on the stock was 7.9 times the 30-day average volume, for this time of the day.

Lupin Ltd. has voluntarily recalled specific batches of Gatifloxacin Ophthalmic Solution, 0.5% to the retail level.

In a clarification on new reports regarding the recall, Lupin informed exchanges that the recall would not have a material impact on the revenues or profitability and reiterated its commitment to manufacture high-quality medicines.

According to USFDA, Lupin recalled the lot due to 'failed stability specifications'.

Shares of Aurobindo Pharma Ltd. rose over 6% in intraday trade to Rs 713.5 apiece after the company's net income for the second quarter missed average analyst estimate.

Aurobindo Pharma Q2FY22 (Consolidated, QoQ)

• Revenue up 4% at Rs 5,941.92 crore Vs Rs 5,702 crore (BBG estimate: Rs 6,093.9 crore)

• Net profit down 9% at Rs 697 crore Vs Rs 770 crore (BBG estimate: Rs 786 crore profit)

• Ebitda down 2% at Rs 1,186.7 crore Vs Rs 1,209.4 crore (BBG estimate: Rs 1,292.7 crore)

• Margins at 20% Vs 21.2% (BBG estimate: 21.2%)

• EPS at Rs 11.89 per share Vs Rs 13.14 (BBG estimate: Rs 13.49)

• Approved second interim dividend of Rs 1.50 per equity share

Of the 31 analysts tracking the company, 24 maintained 'buy', four maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 32.1%

Motilal Oswal

• Maintains 'buy' with the target price kept unchanged at Rs 950; implied return of 31.84%.

• Decline in formulation sales and API led to overall sales decline.

• Gross margin decline is due to cost pressure of key raw materials.

• Company filed 27 ANDAs, including five injectables, with the U.S. FDA in the September quarter.

UltraTech Cement Ltd. committed to net zero concrete roadmap announced by Global Cement and Concrete Association. The roadmap includes a commitment to cut sectoral carbon dioxide emissions by 25% by 2030. The company has also committed to produce carbon neutral concrete by 2050.

Source: Exchange Filing

Shares of Ujjivan Small Finance Bank Ltd. fell 15.33%, the steepest intraday decline in over 10 weeks, to Rs 18.5 apiece after the company reported net loss in the September quarter, post market hours Monday.

Asset quality also deteriorated during the second quarter.

Ujjivan Small Finance Bank Q2FY22

• NII down 17% at Rs 391.36 crore Vs Rs 470.14 crore (YoY)

• Net loss of Rs 273.79 crore Vs Net profit of Rs 96 crore (YoY)

• GNPA at 11.80% Vs 9.79% (QoQ)

• NNPA at 3.29% Vs 2.68% (QoQ)

Of the 18 analysts tracking the company, eight maintained 'buy', five maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 19.8%.

• Max Healthcare has 2.14 million shares change hands in two bunch trades.

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

Shares of SH Kelkar & Co. Ltd. climbed 13.1%, the most intraday rise in seven months, after 13.4 million shares changed hands on BSE in two bunched trades.

Details of buyers and sellers are not immediately known

Source: Bloomberg

India's stock benchmarks opened little changed, as gains in auto and healthcare stocks were offset by losses in banking and fmcg stocks.

The S&P BSE Sensex traded flat at 60,575.48. The NSE Nifty 50 was also little changed at 18,074. Tata Consultancy Services Ltd. contributed the most to the index gain, increasing 0.7%. Divi's Laboratories Ltd. had the largest increase, rising 2.9%. In early trading, 33 of 50 shares rose, while 17 fell.

The broader indexes outperformed their broader peers with the S&P BSE MidCap index gaining 0.8% and the S&P BSE SmallCap adding 0.5%. Sixteen of the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Auto and Healthcare indexes rising over 1%.

The market breadth was skewed in favour of the bulls. About 1,726 stocks advanced, 739 declined and 103 remained unchanged.

Sapphire Foods India Ltd., a franchisee of Yum Brands Inc., raised Rs 933 crore ($126 million) from 53 anchor investors including Government of Singapore, Abu Dhabi Investment Authority, Fidelity Funds for its initial public offering that opens for subscription on Tuesday.

Anchor investors bought shares at Rs 1,180 each, which is the top end of the Rs 1,120-1,180 price range set for the IPO, according to a filing late on Monday

The IPO, which is via a sale of secondary shares by Sapphire Foods founders and investors, aims to raise as much as Rs 2,073 crore; subscription closes Nov. 11

Source: Bloomberg

• TVS Motor is in talks with global private equity investors to raise $300 million-$500 million for its electric vehicle subsidiary at a valuation of $3.5 billion-$4 billion, Economic Times reported, citing three people familiar with the matter.

• TVS is said to have an investment banker to advise it.

• Exact amount of investment and valuation is yet to be firmed up.

• Muthoot Finance cut to 'accumulate' from 'buy' at Nirmal Bang; price target: Rs 1,854

• Sun TV raised to 'buy' from 'accumulate' at Dolat Capital; price target: Rs 722

Source: Bloomberg

• The Indian rupee may extend gains amid inflows for the nation’s biggest share sale and a weaker dollar. States will sell Rs 6,000 crore of bonds on Tuesday.

• One97 Communications got bids for 18% of the shares on offer on the first day of its IPO; subscription closes Wednesday and the parent company of Paytm aims to raise as much as Rs 18,300 crore

• USD/INR fell 0.6% to 74.0237 on Monday; intraday it touched 73.98, the lowest since Sept. 28

• 10-year yields fell 6bps to 6.3% on Monday after the govt cut tax on retail fuel, easing inflation fears

• RBI to hold Rs 2 lakh crore 7-day reverse repo auction on Tuesday

• India will sell Rs 24,000 crore of bonds Friday, including a new 5-year bond

• Global funds sell net Rs 861 crore of India stocks Monday: NSE

• They sold Rs 788 crore of sovereign bonds under limits available to foreign investors, and added Rs 16 crore of corporate debt

• State-run banks sold Rs 1,820 crore of sovereign bonds on Nov. 8: CCIL data. Foreign banks bought Rs 615 crore of bonds

Source: Bloomberg