Sensex, Nifty Decline Dragged By Energy, Banking Stocks

India's stock benchmarks closed lower, dragged by losses in energy, banking and oil and gas stocks, amid rising inflation concerns.

The S&P BSE Sensex index shed over 0.6% to 60,322.37. The NSE Nifty 50 index also declined by similar magnitude to 17,999.20. This is the lowest close for Sensex and Nifty 50 since November 11. Reliance Industries Ltd. contributed the most to the index decline, decreasing 2.3%. Shree Cement Ltd. had the largest drop, falling 3.2%. Today, 36 of 50 shares fell, while 14 rose

The broader indices outperformed their larger peers with the S&P BSE Midcap index shedding 0.4% and S&P BSE Smallcap index closing little changed. Thirteen of the 19 sectoral indices compiled by the BSE Ltd. declined with S&P BSE Energy index shedding over 2%. On the flipside, the S&P BSE Auto index rose over 2.6%.

The market breadth was skewed in the favour of bears. About 1,585 stocks advanced, 1,744 declined and 145 remained unchanged

• NHPC cut to 'reduce' from 'add' at HDFC Securities; price target: Rs 31

• CreditAccess Grameen raised to 'buy' from 'hold' at Sushil Finance; price target: Rs 731

Source: Bloomberg

HCL Technologies Ltd. announced a new multi-year application deal with Euroclear Group to accelerate its tech transformation journey and enhance digital capabilities.

• HCL Tech will work with Euroclear to explore new business model and market opportunities through innovation and data monetisation. Euroclear is the world's largest provider of domestic and cross-border settlement and related services for bond, equity and fund transactions.

• HCL Tech is likely to leverage the Fenix 2.0 framework to modernise the digital channels of Euroclear.

• HCL Tech will also establish a co-innovation lab in Brussels with Euroclear.

Source: Exchange Filing

• Delhi HC directed the Competition Commission of India to decide on the complaint seeking revocation of Amazon's investment in Future Coupons Pvt. within two weeks

• Traders body had sought speedy decision by CCI on Future Retail Ltd.'s complaint

Source: Bloomberg

• Bankers will start reaching out to potential anchor investors in IPO of LIC next week.

• A list with names of 100 global investors has been shares with 10 banks

• Banks plan to file the draft IPO prospectus with SEBI by December first week

Source: People with knowledge of the matter

Shares of KNR Constructions Ltd. rose 2.38% in intraday trade to Rs 288.8 apiece as several analysts raised target after the company reported sequential growth in consolidated revenue in the September quarter on Friday.

September Quarter (Consolidated, QoQ)

• Revenue at Rs 842.01 crore vs Rs 807.09 crore

• Net income at Rs 73.41 crore vs Rs 108.02 crore

• Total expenses at Rs 739.29 crore vs Rs 669.02 crore

• Other income at Rs 11.22 crore vs Rs 5.01 crore

Of the 26 analysts tracking the company, 23 maintained 'buy', two maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 12.4%.

IDBI Capital

• Maintains 'buy' with the target price raised to Rs 345 from Rs 329; potential upside of 23%

• Execution gained momentum with no shortfall in workforce in Q2

• Order inflow was healthy at Rs 900 crore, further inflow of Rs 2,000 crore-2,500 crore expected in H2.

• Q2 net working capital days have fallen to 45 days.

• Robust growth in toll collection likely to aid acceleration of growth momentum.

• Company eying entry into the railway sector since there is a huge potential of Rs 100 lakh crore in the sector.

Dolat Capital

• Maintains 'accumulate' with the target price raised to Rs 320 from Rs 308 earlier; a potential upside of 11.83%.

• Healthy return ratios, well-managed balance sheet, comfortable working capital, low debt-to-equity and quality management augurs well for the company's growth prospects.

• Order book of Rs 11,590 crore provides strong revenue visibility

• Q2 revenue came in-line while EBITDA margins and APAT were above estimates

• Expect execution in highway construction to pick up in H2.

• Pick up in toll collection with the increase in transportation boded well for the stock.

Shares of Mahindra CIE Automotive Ltd. rose over 9% to Rs 308.95 apiece, higher than any close since January 10, 2008.

Trading volume was 12% above the 20-day average volume, for this time of the day.

The relative strength index on the stock was above 70, suggesting it may be overbought.

Analysts have six 'buy', no 'hold' and one 'sell' recommendations on the stock. The stock trades at 32 times its estimated earnings per share for the coming year.

India's stock benchmarks declined, but were off the morning lows, dragged by losses in banking and energy stocks.

The S&P BSE Sensex index fell 0.16% to 60,621.15. The NSE Nifty 50 index also declined by similar magnitude to 18,085.85. Reliance Industries Ltd. contributed the most to the index decline, decreasing 1.3%. Shree Cement Ltd. had the largest drop, falling 1.7%. In midday trading, 25 of 50 shares fell, while 25 rose.

The broader indices outperformed their larger peers with the S&P BSE Midcap adding 0.3% and S&P BSE Midcap gaining 0.65%. Thirteen of the 19 sectoral indices compiled by the BSE Ltd. advanced with S&P BSE Auto index adding 2%.

The market breadth was skewed in the favour of bulls. About 1,774 stocks advanced, 1,399 declined and 168 remained unchanged.

• I have spoken to my counterparts from Saudi Arabia, the UAE, Russia.

• Strategic oil reserve were not "ever intended for a situation like this". They are intended "for force majeure situations".

Source: Hardeep Singh Puri, Oil Minister to Bloomberg TV

Shares of Thermax Ltd. extended the post-earnings rally to rise over 8% in intraday trade to Rs 1,760 apiece after the company reported sequential growth in net profit and revenue in the second quarter, post market hours Wednesday. Since then, shares have risen 30%.

September Quarter Results (Consolidated, QoQ)

• Revenue up 39.62% at Rs 1,469.32 crore Vs Rs 1,052.36 crore

• Net profit up 81.4% at Rs 87.92 crore Vs Rs 48.47 crore

• Total costs at Rs 1,391.78 crore vs Rs 1,021.49 crore

• Other income at Rs 36.75 crore vs Rs 25.39 crore

Of the 28 analysts tracking the company, seven maintained 'buy', seven maintained 'hold' and 14 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 17.3%.

Trading volume on the stock was 7.3 times the 30-day average volume, for this time of the day. The relative strength index on the stock was at 82, suggesting it may be overbought.

Analyst updates in the past three days include two upgrades and one upgrade with the consensus analyst recommendations improving from 'sell' to 'hold' on Monday.

Over the past month, 15 of the 28 analysts have raised targets higher.

Motilal Oswal

• Maintains 'neutral' with the target price kept unchanged at Rs 1,385; an implied return of -2.38%.

• Revenue was in-line with the estimate while gross margin remained stable.

• Order inflows remained strong and order book was robust at Rs 6,520 crore.

Dolat Capital

• Maintains 'sell' with the target price kept unchanged at Rs 1,205; an implied return of -11.45%

• Robust revenue growth aided by performance in energy, environment and chemical segments.

• Growth in net profit driven by higher-than-estimated other income.

Shares of Coromandel International Ltd. rose nearly 2% in intraday trade to Rs 810.8 apiece after the company announced plans to set up a new 1,650 metric tonnes per day design capacity sulphuric acid plant in Visakhapatnam.

• The country's second largest phosphatic fertilizer players will set up the plant at its fertizer complex at a cost of Rs 400 crore.

• Coromandel has also signed technology partnership agreements with Monsanto Enviro-Chem Systems and ThyssenKrupp Industrial Solutions.

• The new sulphuric acid plant will increase the sulphuric acid production capacity by 5 lakh metric tonnes per annum to a total capacity of 11 lakh metric tonnes.The rise in production would reduce the import dependence and also ensure sustainable production of Phosphoric acid.

Of the 16 analysts tracking the company, 12 maintained 'buy' and four maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 25.5%

Source: Exchange Filing, Bloomberg

Indian bonds edge lower after RBI Deputy Governor Michael Patra late on Monday said the nation can not remain Immune to global spillovers as the central banks across the world are contemplating shifting their policy stance from a pandemic mode to a normal one. 

• Traders also await a Rs 10,000 crore($1.3b) state government bond sale, and a speech by RBI Governor Shaktikanta Das later in the day

• 10-year yields rose by 1bp to 6.36

• USD/INR little changed at 74.5000

Source: Bloomberg

Shares of Meghmani Organics Ltd. rose 3.21% to Rs 94.8 apiece after the company announced entry into new and lucrative variant of White Pigment Titanium Dioxide. The company will set up 33,000 metric tonnes production facility at a total caped of Rs 400 crore at Dahej, Gujarat.

The project is expected to be commissioned by Q1FY24 and will be funded by internal accruals and debt.

Titanium Dioxide is used as bright white pigment in coating, paint, plastic, ink, dyes, paper and cosmetics industries. The annual demand for Titanium Dioxide is estimated to be 2,50,000 MTPA growing at 4.2% CAGR.

Source: Exchange Filing.

Shares of Macrotech Developers Ltd. rose 4.7% to a record Rs 1,345 apiece after the company launched its Rs 4,000 crore qualified institutional placement on Monday.

Macrotech Developers plans to issue about 3.4 crore shares. The floor price is set at Rs 1,184.70 per which is at a discount of 7.8% to last close of Rs 1,284.60. Proceeds to be used for capital expenditure including acquisition of land, land development rights or development rights, deleveraging and general corporate purposes.

Of the 10 analysts tracking the company, nine maintained 'buy' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 11.7%. The relative strength index on the stock was 72, suggesting it may be overbought.

Trading volume of the stock was 2.5 times the 30-day average volume for this time of the day.

Tata Consultancy Services Ltd. has been selected by Zebra technologies Corp to aid the I.T. transformation and DevSecOps services.

Under the strategic partnership, TCS will play a key role in the end-to-end global agile transformation of Zebra's IT to support its systems and applications used by 8,800 employees in 45 countries.

Source: Exchange Filing.

• Poonawalla Fincorp Ltd. has 1.05 million shares change hands in bunched trade.

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

• Marksans Pharma raised to 'buy' from 'accumulate' at Arihant Capital; price target: Rs 86

• KNR Constructions raised to 'buy' from 'add' at Equirus Securities; price target: Rs 335

Source: Bloomberg

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

• The 5-year yield rose 2.4bps to 5.713%

• The 10-year yield rose 1.2bps to 6.355%

• The 30-year yield remained unchanged at 6.937%

• The 5-year-10-year yield spread was 64.2bps, vs previous close 65.4bps

Source: Bloomberg

• Manappuram Finance raised to 'buy' from 'hold' at IDBI Capital Market Services; price target: Rs 240

• BEML cut to 'accumulate' from 'buy' at Elara Securities; price target: Rs 1,820

• Glenmark Pharma cut to 'add' from 'outperform' at Choice Equity; price target: Rs 581

Source: Bloomberg

• Elpro International gains over 6% after anpit 13.5 million shares, representing 8% of the equity, change hands on the BSE.

• Trading volume is 49 times the three-month full day average volume.

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

• Aptus Value has 2.08 million shares change hands in a bunched trade.

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

• Tanla Platforms has 1.5% of equity (2 million shares) traded in a single bunch.

• Details of buyers and sellers are not immediately known

Source: Bloomberg

Shares of Coforge Ltd. rose nearly 7%, the steepest intraday decline in over a month, to Rs 5,8974 apiece after the company registered American Depositary Shares for selling holders.

• The actual number of ADSs on offer will depend on number of shares offered by selling holders pursuant to an invitation to take part in the offering: Coforge

• Coforge won't get any proceeds from the offering

• Maximum offering price listed as $100 million

• Bookrunners include Citigroup and JP Morgan.

Of the 27 analysts tracking the company, 18 maintained 'buy', five maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 0.1%.

Trading volume on the stock is 8 tmes the 30-day average volume for this time of the day.

Source: Bloomberg

India's stock benchmarks opened little changed, as gains in capital goods and industrials stocks were offset by losses in banking stocks, as investors across the globe weighed inflation concerns and the prospect of a quicker tapering of central bank stimulus.

The S&P BSE Sensex was little changed at 60,611.66. The NSE Nifty 50 Index also traded flat at 18,069.10. Reliance Industries Ltd. contributed the most to the index decline, decreasing 0.6%. HDFC Ltd. had the largest drop, falling 1.1 percent. In early trading, 17 of 50 shares fell, while 32 rose.

The broader indices outperformed their larged peers with both the S&P BSE Midcap and S&P BSE Smallcap gaining over 0.2%. Twelve of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Capital goods adding 0.75%.

The market breadth was in skewed in the favour of bulls. About 1,546 stocks advanced, 936 declined and 118 remained unchanged.

Serum Institute of India Ltd. is likely to start supplying its Covishield vaccine to the WHO sharing Covax facility this week, the Economic Times newspaper reported, citing people familiar with the development

• The company is likely to supply 25 million doses until the end of December: Report

• Press Trust of India reported Monday that SI had been allowed by the government to export vaccines to Indonesia.

• Elpro International has 13.5 million shares change hands in a pre-market trade.

• Details of the buyers and sellers are not immediately known.

Source: Bloomberg

• Fortis Healthcare cut to 'add' from 'buy' at ICICI Securties; price target: Rs 303

• Fortis Healthcare raised to 'buy' from 'hold' at Jefferies; price target: Rs 326

• Nestle India raised to 'overweight' from 'neutral' at JP Morgan; price target: Rs 22,000

• Tata Consumer cut to 'neutral' from 'overweight' at JP Morgan; price target: Rs 846

Source: Bloomberg

Rupee bond traders will consider a speech by RBI deputy governor Michael Patra after market on Monday in which he said India couldn’t be immune to global spillovers as central banks around the world contemplate shifting their policy stance from a pandemic mode to a normal one. Traders also await a Rs 10,000 crore ($1.3b) state government bond sale.

• 10-year yields fell 3bps to 6.34% on Monday

• India will front-load a part of tax devolution to states to help them increase expenditure on infrastructure, Finance Minister Nirmala Sitharaman said after a meeting with state chief ministers

• USD/INR little changed at 74.4850 on Monday

• Global funds buy net Rs 425 crore of India stocks Monday: NSE

• They sold Rs 161 crore of corporate debt

• State-run banks sold Rs 787 crore of sovereign bonds on Nov. 15: CCIL data. Foreign banks sold Rs 604 crore of bonds

Asian stocks were steady on Tuesday, while Treasury yields and the dollar trimmed gains as traders weighed inflation concerns and the prospect of a quicker tapering of central bank stimulus.

Shares rose in Japan and South Korea but slipped in Australia. U.S. futures were little changed after the S&P 500 and Nasdaq 100 ended flat.

India’s SGX Nifty 50 Index futures for November delivery rose 0.3% to 18,201.50, while MSCI Asia Pacific Index added 0.3%. The NSE Nifty 50 Index closed little changed on Monday at 18,109.45.

U.S. President Joe Biden and Chinese leader Xi Jinping began a face-to-face virtual summit. Any signs of improving bilateral ties could help sentiment, but the effect may be short lived given wider concerns in markets over inflation and the fallout of Xi’s “common prosperity” drive to tackle inequality.

Elsewhere, oil fluctuated as investors wait to see if the Biden administration will tap crude reserves. Bitcoin slipped to trade below $62,000.

Foreign investors bought net Rs 2,450 crore of stocks on Nov. 12, according to NSDL website.