Sensex, Nifty Log Worst Day In Nearly 7 Months, Dragged By Reliance, Banks
Catch all live updates on share prices, index moves, corporate announcements and more from the Sensex and Nifty, today.
KEY HIGHLIGHTS
Go Fashion IPO Subscription Status: Day 3 Live Updates
MTNL Shares Jump As Dipam Invites Bids To Sell Specific Assets Through Asset Monetisation Portal
Paytm Shares Decline 10%
Bharti Airtel Jumps To A Record After Announcing Tariff Hike
Reliance Industries Declines After Agreeing To Re-evaluate Aramco's Proposed Investment In O2C Business
Closing Bell
India's stock benchmarks logged the steepest single day loss in nearly seven months, dragged by Reliance and banks. The S&P BSE Sensex and NSE Nifty 50 index declined for the fourth consecutive season, the longest losing streak in a month.
Sensex declined 1.96% to 58,465.89, down 1,170 points. The 30-stock gauge fell 2.72% in intraday trade. Nifty 50 also declined by a similar magnitude to 17,416.55. Reliance Industries Ltd. contributed the most to the index decline, decreasing 4.4%. Bajaj Finance Ltd. had the largest drop, falling 5.7%. Today, 42 of 50 shares fell, while 8 rose.
The broader indices underperformed their larger peers with both S&P BSE MidCap and S&P BSE SmallCap falling over 2.6%. Barring S&P BSE Telecom and S&P BSE Metal, all the other 17 sectoral indices compiled by BSE Ltd. declined with S&P BSE Realty shedding 4.5% and S&P BSE Energy falling 4%.
The market breadth was skewed in the favour of bears. About 906 stocks advanced, 2,498 declined and 164 remained unchanged.
Extending The Losing Streak
IDFC First Bank down 5th day; longest loss streak in 13 months
Indian Overseas Bank slips for 7th day; longest loss streak in 16 months
Bank of Maharashtra falls for 8th day; HUDCO falls for 7th day
Source: Bloomberg
SBI Affirmed At BBB- By Fitch
SBI'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
Source: Bloomberg
Sensex, Nifty Decline The Most In Over 7 Months
Bandhan Bank Has 2.46 Million Shares Change Hands In A Bunched Trade
Bandhan Bank Ltd. has 2.46 million shares change hands in a bunched trade.
Details of the buyers and sellers are not immediately known.
Source: Bloomberg
JBM Auto Shares Climb After Board To Consider Stock Split On December 8
Shares of JBM Auto Ltd. rose over 9% in intraday trade to Rs 973.8 apiece after the company announced on Friday that its board of directors will consider and approve the proposal of sub-division of share on December 8.
Trading volume on the stock was 2.3 times the 30-day average volume, for this time of the day.
Relative strength index on the stock was at 75, suggesting it may be overbought.
European Markets Open Higher Amid Fresh Covid Curbs
Bharat Electronics Receives Biggest Export Order Ever
Airbus Defence and Space has signed a contract with Bharat Electronics Ltd. for the manufacture and supply of Radar Warning Receiver (RWR) and Missile Approach Warning Systems (MAWS).
This is the biggest export order received till date by Bharat Electronics, the company said in an exchange filing.
The contract comes as part of offset commitments under the C295 aircraft programme of the Indian government.
Finolex Industries Sheds The Most In 20 Months
Shares of Finolex Industries Ltd. fell over 5%, the biggest intraday decline in 20 months, to Rs 206.5 apiece.
Trading volume was 35% above the 20-day average volume for this time of the day.
The company trades at 18 times its estimated earnings per share for the coming year. Analysts have nine 'buy', six 'hold' and one 'sell' recommendations on the stock.
NSE Nifty Realty Index Down Nearly 4%
Mid-Day Market Update: Sensex, Nifty Shed Nearly 2%; Reliance Leads Decline
India's stock benchmarks logged the steepest intraday fall since October 28, dragged by Reliance Industries Ltd. and banking stocks.
The S&P BSE Sensex declined 1.72% (over 1,000 points) to 58,607.75. The 30-stock gauge fell nearly 2% in intraday trade. The NSE Nifty 50 index also declined by similar magnitude to 17,488.30. Reliance Industries contributed the most to the index decline, decreasing 4.1%. Bajaj Finance Ltd. had the largest drop, falling 5.2%. In midday trading, 41 of 50 shares fell, while 9 rose.
The broader indices underperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap falling over 2%. Barring S&P BSE Telecom index and S&P BSE Metal index, all the other 17 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Energy and S&P BSE Realty index losing nearly 4%.
The market breadth was skewed in the favour of bears. About 869 stocks advanced, 2,436 declined and 170 remained unchanged.
KPI Global Bags Repeat Solar Power Project Order
KPI Global Infrastructure Ltd. secured a repeat worth for executing solar power project of 5.20 Mega Watt dc(direct current) capacity. The order came from Devika Fibres Pvt Ltd. under Captive Power Producer Segment.
Source: Exchange Filing
Banking Stocks Decline; NSE Nifty Bank Index Down Over 2%
Sensex, Nifty At Day's Low; Reliance, Bajaj Twins Decline
Analysts Action: Escorts
Escorts cut to 'add' from 'buy' at Kotak Securities; price target: Rs 1,900
Escorts raised to 'neutral' from 'underperform' at DAM Capital Advisors; price target: Rs 1,733
Source: Bloomberg
NBCC India Reviewing Complaints Regarding Structural Aspects Of NBCC Green View Project In Gurugram
Shares of NBCC India Ltd. fell over 3% in intraday trade to Rs 42.4 apiece after the company said it received complaints regarding structural aspects of NBCC Green View Apartment project in Gurugram. In an exchange filing, NBCC India said it is reviewing the issues raised with inputs from external experts.
Of the four analysts tracking the company, two maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 9.9%
Of the 10 analysts tracking the company, six maintained 'buy', three maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 31.3%.
IRB Infrastructure Slips After Shareholders Approve Rs 5,347 Crore Fundraise
Shares of IRB Infrastructure Developers Ltd. declined 5% in intraday trade to Rs 210.35 apiece.
The company's shareholders approved a preferential allotment at the company's EGM Saturday. Shares worth Rs 5,347 crore would be allotted to Cintra INR Investments, BV and Bricklayers Investment Pvt.
Of the 10 analysts tracking the company, six maintained 'buy', three maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 31.3%.
Rupee Falls, Farm Law Repeal Hurts Sentiment
The Indian rupee falls with regional peers on dollar strength. Traders also weighed Prime Minister Narendra Modi’s move to scrap three farm laws following protracted protests. Bonds gain on decline in crude oil prices.
USD/INR gains 0.2% at 74.37
Source: Bloomberg
Go Fashion IPO Subscription Status: Day 3 Live Updates
Retail investors continued to lead bidding for shares of Go Fashion (India) Ltd. on the final day of its Rs 1,013.6-crore initial public offering.
The issue was subscribed nearly 2.5 and 6.9 times on its first and second day respectively.
Subscription Details: Day 3
The IPO was subscribed 88.81 times as of 3 p.m. on Nov. 22.
Institutional investors: 58.85 times.
Non-institutional investors: 176.84 times.
Retail investors: 46.66 times.
All Constituents Of NSE Nifty Auto Index Decline
Heranba Industries Commences Commercial Production At Its New Unit - IV
Heranba Industries Ltd. has commenced commercial production from new unit -IV located in Vapi in Gujarat.
The company expects the new unit to general annual revenue of Rs 100 crore. The production capacity and the capacity utilisation of the new unit will be 1,200 MTPA.
Source: Exchange Filing
India 10-Year Yields Lower
Most maturities along the India sovereign yield curve were little changed, while 10-year yields fell in Monday morning trading.
The 4-year yield was little changed at 5.355%
The 10-year yield fell 1.7bps to 6.329%
The 30-year yield remained unchanged at 6.89%
The 4-year-10-year yield spread was 97.4bps, vs previous close 98.6bps
Source: Bloomberg
Bajaj Finance Shares Slip The Most In Over Three Weeks
Shares of Bajaj Finance Ltd. shed 4.72%, the steepest intraday decline in over three weeks, to Rs 7,131.8 apiece.
Trading volume on the stock was 30% above the 20-day average volume, for this time of the day.
Bajaj Finance trades at 61 times its estimated earnings per share for the coming year.
Of the 31 analysts tracking the company, 16 maintained 'buy', eight maintained 'hold' and seven maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 5.1%
MTNL Shares Jump As Dipam Invites Bids To Sell Specific Assets Through Asset Monetisation Portal
Shares of Mahanagar Telephone Nigam Ltd. rose nearly 10% in intraday trade on divestment hopes. The Department of Investmenta nd Public Asset Management (DIPAM) invited bids to sell specific assets of BSNL and MTNL through its asset monetisation portal.
Trading volume on the stock was 12.2 times the 30-day average volume, for this time of the day.
Broader Indices Almost Mirror Their Larger Peers
S&P BSE Energy Down Nearly 3%; ONGC Remains The Sole Exception
Paytm Shares Decline 10%
Jesons To Raise Up To Rs 120 Crore Selling New Shares In IPO
Jesons Industries Ltd.'s founder Dhiresh Gosalia aims to sell as many as 12.2 million shares in the initial sale, according to a filing with markets regulator SEBI.
JM Financial and Axis Capital are the book running lead managers to the share sale.
Source: Bloomberg
Bharti Airtel Jumps To A Record After Announcing Tariff Hike
Shares of Bharti Airtel Ltd. to a record Rs 755.95 after the company announced that the price of the entry-level voice plan will increase by 25.3% to Rs 99. In a press release, Bharti Airtel said that the prices of unlimited voice bundles as well as data top-ups will also increase by 20-22%. The new tariffs will be effective from November 26.
Of the 34 analysts tracking the company, 32 maintained 'buy' and two maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 8.2%.
Trading volume on the stock was 9.1 times the 30-day moving average, for this time of the day.
Reliance Industries Declines After Agreeing To Re-evaluate Aramco's Proposed Investment In O2C Business
Shares of Reliance Industries Ltd. shed over 4% in intraday trade to Rs 2,370 apiece, after the company and Saudi Aramco have agreed to re-evaluate the latter’s proposed investment in RIL’s oil-to-chemicals business. Reliance will withdraw its application with NCLT for segregating the O2C business. The decision to re-evaluate the proposed investment follows RIL’s recently announced plans to develop green energy giga complex at Jamnagar.
Credit Suisse
Maintains 'neutral' with the target price kept unchanged at Rs 2,450; an implied return of -0.94%.
Market was factoring in 100% probability of Aramco deal going through after the company's chairman was inducted into RIL's board of directors.
Disclosure on Aramco deal not going through in the current form and in the near term is a negative surprise.
Listing timelines of Jio and Retail and potential tariff hike in telecom business are the key focus areas after the Aramco deal not going throught.
Jefferies
Maintains 'buy' with the target price cut to Rs 2,880 from Rs 3,000 earlier; an implied return of 16.44%
RIL and Aramco deciding to not proceed with the proposed transaction comes as a disappointment.
The cancellation has no bearing on RIL's balance sheet.
The deal could have set a valuation benchmark of $75 billion and led to re-rating of the O2C business.
Lowered our multiple on the O2C business to reflect mid-cycle margins.
Value the business at $70 billion ($80 billion earlier) at 7.5x forward EV/EBITDA (vs 8.5x earlier)
Bernstein
Maintains 'outperform' with the target price kept unchanged at Rs 2,830; an implied return of 14.42%
Energy landscape has fundamentally changed since the MoU was signed in 2019
Reliance has highlighted the difficulty in separating Jamnagar from the clean energy business as a reason to not complete the transaction.
Do not believe that failure of the transaction will limit Reliance ability to fund growth in clean energy.
Value the O2C business at $69 billion based on peer multiples rather than the Aramco implied valuation of $75 billion.
Failure to conclude the MoU with Aramco is likely to trigger a negative stock reaction in the short term, but it does not alter the investment case or target price.
Of the 37 analysts tracking the company, 21 maintained 'buy', 11 maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 10.1%.
Opening Bell: Sensex, Nifty Open Lower; Reliance Leads Decline
India's stock benchmarks open lower, dragged by losses in energy stocks, after Reliance Industries Ltd. and Saudi Aramco agreed tor re-evaluate the proposed investment in RIL's O2C business.
The S&P BSE Sensex shed nearly 0.5% to 59,376.97. The NSE Nifty 50 index declined by a similar magnitude to 17,665.80. Reliance Industries Ltd. contributed the most to the index decline and had the largest move, decreasing 3.8%. In early trading, 38 of 50 shares fell, while 12 rose.
The broader indices underperformed their larger peers with both S&P BSE Midcap and S&P BSE Smallcap index shedding 1%. Barring S&P BSE Telecom and S&P BSE Teck indexes, all the other 17 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Energy index down over 3%.
The market breadth was skewed in favour of bears. About 944 stocks advanced, 1,578 declined and 143 remained unchanged.
One 97 Communications Files Business Update For Q2 & October
GMV at Rs 1.95 lakh crore in September quarter, up 107% year-on-year
GMV at Rs 83,200 crore in October, up 131% year-on-year
Monthly transacting users at 6.3 crore in October, up 35% year-on-year.
Monthly GMV/MTU up 55% in September quarter, up 71% in October.
Total number of devices employed at 14 lakh as of October.
Over 28 lakh partner loans disbursed through network in September quarter, up 714%.
Value of loans disbursed at Rs 1,260 crore in September quarter, compared to Rs 210 crore a year ago.
Source: Business update filed to exchanges
Analyst Actions: Nuvoco Vistas, Maruti
Nuvoco Vistas rated 'new buy' at ICICI Securities; price target: Rs 645
Maruti Suzuki cut to 'market perform' at Bernstein; price target: Rs 8,000
Source: Bloomberg
Rupee May Open Lower; PM Modi Scraps Farm Laws
The Indian rupee may open lower amid global dollar strength with investors weighing the pace of future economic reforms after Prime Minister Narendra Modi scrapped three farm laws following protracted protests.
Modi made his biggest policy reversal since assuming power in 2014, scrapping controversial farm laws ahead of crucial state elections
In a televised address to the nation on Friday, Modi apologized for failing to convince a section of farmers and said the parliament will repeal the legislation in the winter session
USD/INR fell 0.1% at 74.2375 on Thursday
10-year yields fell 2bps to 6.34%
Foreign investors sold Rs 3,930 crore of Indian stocks on Thursday, according to provisional data from NSE
They bought Rs 227 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 45 crore of corporate debt
State-run banks sold Rs 1,020 crore of sovereign bonds on Nov. 18: CCIL data. Foreign banks bought Rs 2,500 crore of bonds
Source: Bloomberg
In Focus: Oil & Gas Firms On Reliance-Aramco Deal Cancellation
India’s oil and gas companies may move after sector bellwether Reliance Industries scrapped a deal to sell a 20% stake in its oil-to-chemicals unit to Saudi Arabian Oil Co.
The two companies signed a non-binding letter of intent in 2019 that valued Reliance’s oil-to-chemicals unit at about $15 billion. But since then, Reliance has widened its focus toward renewable energy.
Stocks In Focus: Indian Oil, Bharat Petroleum, Hindustan Petroleum
Also In Focus: Adani Total Gas, Adani Green Energy, Oil & Natural Gas, Gail Indi
Pre-Paid Plans Of Bharti Airtel To Turn Costlier
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 20-22%.
New tariffs will be effective from November 26, 2021.
Source: Bharti Airtel Press Release
SGX Nifty Hints At Opening Gains; Reliance, Cipla, ONGC In Focus
Most Asian stocks fell on Monday amid concerns about European Covid-19 curbs and the risk of the Federal Reserve speeding up stimulus withdrawal.
Shares declined in Japan and Australia, while South Korea climbed amid data showing export growth. U.S. futures edged up after sectors sensitive to the economic outlook led the S&P 500 lower
India’s SGX Nifty 50 Index futures for November delivery rose 0.4% to 17,780.00, while MSCI Asia Pacific Index shed 0.2%. The NSE Nifty 50 Index fell 0.8% on Thursday to 17,764.80. Markets were closed on Friday for a holiday.
A gauge of the dollar was steady. Oil extended declines on the prospect of key consumers adding emergency supplies as well as the flareup in Covid-19 cases in Europe.
Back home, foreign investors bought net Rs 1,140 crore of stocks on Nov. 17, according to NSDL website.