Sensex, Nifty Log Gains After Two Weeks Of Losses
Catch all live updates on share prices, index moves, corporate announcements and more from the Sensex and Nifty, today.
KEY HIGHLIGHTS
Gujarat Fluorochemicals Up 25% In Three Sessions
IEX Jumps Nearly 15% In Intraday Trade As Stock Turns Ex-Date For 2:1 Bonus Shares
Tega Industries IPO Subscription Status: Day 3 Live Updates
Anand Rathi Wealth IPO Subscription Status: Day 2 Live Updates
Larsen & Toubro Advances After Announcing Tie Up With ReNew Power For India Green Hydrogen Projects
Closing Bell
India's stock benchmarks declined on Friday, but logged gains for the week for the first time since the week-ended November 12, aided by gains in information technology stocks. Investors await November jobs report in the U.S. even as markets ended gains amid concerns over omicron variant and possibility of faster tapering.
On Friday's session, the S&P BSE Sensex fell 1.31% to 57,696.46. The NSE Nifty 50 also declined by similar magnitude to 17,196.70. Reliance Industries Ltd. contributed the most to the index decline, decreasing 3.0% Power Grid Corp. of India had the largest drop, falling 3.9%. Today, 38 of 50 shares fell, while 12 rose.
The broader indices outperformed their larger peers with the S&P BSE MidCap little changed on Friday while S&P BSE SmallCap added 0.33%. Sixteen of the 19 sectoral indices compiled by the BSE Ltd. declined with S&P BSE Energy index slipping over 2%.
The market breadth was skewed in the favour of bulls. About 1,802 stocks advanced, 1,449 stocks declined and 146 remained unchanged.
"10-12 new covid-19 variant of omicron cases were reported in India and its impact was visible in the market with Nifty50 to decline by 200 points on the last trading day of the week . Tech stocks are witnessing profit booking followed by FMCG and Infra to decline by 1% while auto, metal and cement stocks are trading flat. The NSE Nifty 50 has declined by 9% from its all time high and bounced from the support in range of 16700-16800 levels being the recent bottoms", Vikas Jain, Sr. Research Analyst, Reliance Securities wrote in a note and added "on the higher side crossover of 17,800 would give a breakout from this corrective action as the previous support of 17,800 will act as resistance now. Any negative news flow from the global or domestic markets could breach 16,700 and might attempt to test the long term 200 day average of 16,100 levels".
Analyst Actions: BPCL, Indian Oil
BPCL raised to 'buy' from 'accumulate' at Elara Securities; price target: Rs 493
Indian Oil raised to 'buy' from 'accumulate' at Elara Securities; price target: Rs 148
Source: Bloomberg
Vodafone Idea Jumps To Highest In Two Years; RSI Above 70
Shares of Vodafone Idea added 15% in intraday trade to Rs 14.7 apiece to the highest in two years (higher than any close since May 13, 2019).
Trading volume on the stock was triple the 20-day average volume, for this time of the day.
Relative strength index on the stock was above 70, indicating it may be overbought.
Analysts have no 'buy', six 'hold' and 15 'sell' recommendations on the stock.
Nifty Bank Index Sheds Nearly 1%
SPARC Enters Into Licensing Agreement With Biomodifying To Acquire Exclusive Rights For Antibody Against Unique Oncology Target
Sun Pharma Advanced Research Company Ltd. (SPARC) announced an agreement with Biomodifying LLC to exclusively license Biomodifying's intellectual property, including patents and patent applications.
Under the agreement, Biomodifying is eligible for an up-front payment, milestone payments on pre-specified clinical, regulatory and commercialised milestones, as well as royalties on sales, the company said in an exchange filing.
SPARC will also pay Biomodifying a percentage of payments received for sublicenses of the licenses IP.
Sensex, Nifty At Day's Low, Dragged By Reliance, HDFC
Reliance Industries Sheds Nearly 3%
European Markets Open Higher As Fears over Omicron Covid-19 Strain Abate
NSE Nifty Telecom Index Down Nearly 1%; Airtel Leads Decline
Morepen Lab Receives U.S. FDA Approval For Anti-Allergy Drug Allegra; Shares Advance
Shares of Morepen Laboratories Ltd. rose 4.8% in intraday trade to Rs 53.45 apiece after the company received U.S. FDA approval for anti-allergy drug Fexofinadine Hydrochloride. The drug is sold in India under the brand name Allegra.
Morepen is the third largest exporter of the drug and the U.S. FDA approval is likely to drive more exports.
Trading volume on the stock is 2.1 times the 30-day average volume, for this time of the day. Share price crossed above the 200-day simple moving average, indicating potential upward price momentum.
NSE Nifty Media Index Up Over 1.5%; Dish TV, Network 18 Climb Over 4%
Sensex, Nifty Slip; Power Grid, Sun Pharma Decline
Reliance Industries Chairman Mukesh Ambani Says India Will Lead The Digital Society Globally
Energy systems are getting digitised.
Tremendous value creation happening in digital world.
Digital first world will be a 'more equal world'.
5G rollout will make Indian digital infrastructure most advanced.
India will make 'great strides' in fintech, edtech.
Source: InFinity Forum organised by IFSCA and Bloomberg
India Seeks Rs 2.99 Lakh Crore Cash Outgo In FY22 Extra Spending
India's Finance Ministry sought lawmakers' approval to spend an additional Rs 3.74 lakh crore for the current fiscal year ending March 31, according to second batch of supplementary demands for grants presented in parliament Friday.
Of the total extra expenditure, net cash outgo is Rs 2.99 lakh crore, while the remaining will come from saving or enhanced receipts and recoveries of ministries.
Supplementary demand for grants including additional allocation for MGNREGA.
Additional allocation of Rs 22,038.99 for Rural Development Ministry for transfer to MGNREGA scheme.
Source: Second batch of supplementary demands for grants
Mid-Day Market Update: Sensex, Nifty Slip; Reliance Leads Decline
India's stock benchmarks erased morning gains and declined, dragged by losses in energy, healthcare and telecom stocks.
The S&P BSE Sensex shed 0.5% to 58,180.48. The NSE Nifty 50 also declined by similar magnitude to 17,331.85. Reliance Industries Ltd. contributed the most to the index decline, decreasing 1.8%. Power Grid Corp. of India had the largest drop, falling 2.5%. In midday trading, 29 of 50 shares fell, while 21 rose.
The broader indices outperformed their larger peers with S&P BSE MidCap adding 0.3% and S&P BSE SmallCap rising 0.7%. Ten of the 19 sectoral indices compiled by the BSE Ltd. advanced with S&P BSE Capital Goods rising the most. On the flip side, S&P BSE Energy shed over 1%.
The market breadth was skewed in the favour of bulls. About 1,973 stocks advanced, 1,163 declined and 135 remained unchanged.
Analyst Actions: Bata India, Surya Roshni
Bata India rated 'new sell' at HDFC Securities; price target: Rs 1,400
Surya Roshni rated 'new buy' at Systematix Shares & Stocks; price target: Rs 900
Source: Bloomberg
Broader Indices Outperform Their Larger Peers
Gujarat Fluorochemicals Up 25% In Three Sessions
Shares of Gujarat Fluorochemicals Ltd. climbed nearly 10% to a record Rs 2,539.7 apiece. Over the past three sessions, the company's stock has risen 25%. On December 1, brokerage firm ICICI Securities initiated coverage on the stock with a 'buy' recommendation, with a price target of Rs 3,086, an implied return of 49.81%.
ICICI Securities
Gujarat Fluorochemicals is in a sweet spot as rising demand for fluoropolymers driven by battery, solar panel and green hydrogen verticals.
Expansion into other fluorine derivatives provides an avenue for sustained growth as it expands the company's addressable market.
Company's bold capex plan of Rs 2,500 crore over the next three years likely to lead to earnings growth of 45.9% CAGR over FY21-24E (on low base).
Expect RoCE (post-tax) to improve from 6.7%-18% over FY21-24E.
High entry barriers in fluoropolymers augur well for the company as the requirement of expertise in managing the reactive chemistry of fluorine, specifics of loading, storage and transport of the material, restriction in the supply of R-22 (for TFE monomer) and R-142B (for VDF monomer) and long gestation period in the business lends an advantageous position.
Company remains the sole manufacturer of fluoropolymers in India and is among the very few players outside China with a large fluoropolymer portfolio.
Gujarat Fluorochemicals has an edge in specialty fluoropolymers segment as well in which China has limited global presence.
Expect fluoropolymer revenue to grow at 32.9% CAGR over FY21-24E
Battery chemicals and other new-age verticals to offer the company a huge option value.
Efforts to reduce working capital to 100 days from 164 days in FY21 along with utilisation of advances should aid free cash flow.
Expect the company to have very little net debt at the end of the forecast period.
Stock is trading at P/E multiple of 20xFY24 which is reasonable compared to peers like 42.1x for Navin Fluorine and 27.5x for SRF.
Of the five analysts tracking the company, four maintained 'buy' and one maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of over 10%.
KEC Shares Edge Higher After Company Secures Orders Worth Rs 1,065 Crore
Shares of KEC International Ltd. rose 4%, the biggest intraday gain in two weeks, to Rs 449.8 apiece, after the company bagged new orders worth Rs 1,065 crore across various businesses, including transmission and distribution, railways, civil, oil and gas pipelines and cables.
The company's YTD order stood at Rs 11,000 crore, up 2.5 times YoY.
Of the 32 analysts tracking the company, 24 maintained 'buy', seven maintained 'hold' and one maintained 'sell' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 17.8%
IEX Jumps Nearly 15% In Intraday Trade As Stock Turns Ex-Date For 2:1 Bonus Shares
Shares of Indian Energy Exchange Ltd. rose nearly 15%, the biggest intraday gain in six weeks, to Rs 278.7 apiece on the BSE, as the stock turned ex-date for 2:1 bonus shares.
The company has fixed December 6 as the 'record date' to ascertain the eligibility of shareholders entitled for the issuance of bonus equity shares of the company.
Of the 16 analysts tracking the company, seven maintained 'buy', five maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 12.6%. Trading volume on the stock was 7.3 times the 30-day average volume, for this time of the day.
Realty Stocks Advance; NSE Nifty Realty Index Up Over 1%
Tega Industries IPO Subscription Status: Day 3 Live Updates
Retail investors continued to piled in on the third day of the Rs 619-crore initial public offering of Tega Industries.
Subscription Details: Day 3
The IPO was subscribed 218.80 times as of 4 p.m. on Dec. 3.
Institutional investors: 215.45 times.
Non-institutional investors: 666.19 times.
Retail investors: 28.98 times.
Anand Rathi Wealth IPO Subscription Status: Day 2 Live Updates
Healthy demand for shares of Anand Rathi Wealth Ltd. continued on the second day, after the Rs 660-crore initial public offer was fully subscribed on the first day, led by retail investors.
Subscription Details: Day 2
The IPO was subscribed 2.83 times as of 4 p.m. on Dec. 3.
Institutional investors: 0.17 times.
Non-institutional investors: 2.78 times.
Retail investors: 4.51 times.
Employees: 0.5 times.
India Yield Curve Steady
Maturities across the India sovereign yield curve were little changed in Friday morning trading.
The 3-year yield was little changed at 5.093%
The 5-year yield rose 0.7bps to 5.688%
The 10-year yield was little changed at 6.356%
The 3-year-10-year yield spread was 126.3bps, vs previous close 125.6bps
Rupee Heads For Second Straight Weekly Decline
India’s rupee is poised for a second straight week of losses as concerns over the spread of omicron virus variant weighs on sentiment. Traders await a Rs 24,000 crore ($3.2 billion) weekly sale of bonds and a speech by Finance Minister Nirmala Sitharaman.
USD/INR steady at 74.9825 on Friday; up 0.2% on the week
10-year yields steady at 6.36%; up 3bps on the week
Source: Bloomberg
Zee Entertainment Climbs Amid Reports Suggesting That The Company Will Sign Binding Agreement With Sony Pictures Before Christmas
Shares of Zee Entertainment Ltd.'s rose over 4% to Rs 356 apiece on the back of reports hinting that the company is likely to sign a binding agreement with Sony Pictures Entertainment Ltd., before Christmas (within the 90-day exclusivity period).
According to Economic Times report, the agreement will seek to address issues raised by Invesco about the founder family's stake in the merger entity.
The 9-member Zee board will have five Sony executives including Tony Vinciquerra, chairman and CEO of Sony.
Punit Goenka will continue as CEO and the only one from the founders to have a board seat.
Zee and Invesco declined to comment, while Sony did not respond, according to the report.
Of the 23 analysts tracking the company, 17 maintained 'buy', five maintained 'hold' and one maintained 'sell' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of over 6%.
Services PMI Expands At Second Fastest Pace In Over A Decade
India Services PMI was at 58.1 in November from 58.4 in October.
IHS Markit India November Composite PMI at 59.2 Vs 58.7 in October; Highest reading since January 2012.
Source: IHS Markit
Power Grid Has 20.9 Million Shares Change Hands In A Bunched Trade
Power Grid has 20.9 million shares change hands in a bunched trade.
Details of the buyers and sellers are not immediately known.
Source: Bloomberg
Financial Inclusion Is A Driver Of Fintech Revolution, Says PM Modi At InFinity Forum
Fintech is resting on four pillars: income, investment, insurance and institutional credit.
Fintech is incomplete without fintech security evolution.
Our digital public infrastructure solutions can improve the lives of people around the world.
Tools like UPI and RuPay give an unparalleled opportunity for countries to provide a low-cost, reliable payment system as well as domestic card schemes and fund remittance systems.
Source: InFinity Forum organised by IFSCA and Bloomberg
Unichem Shares Jump Over 9% After Receiving U.S. FDA Approval For Drug To Treat Schizophrenia
Shares of Unichem Laboratories Ltd. rose nearly 9.5%, the biggest intraday gain in a week, after the company received ANDA approval for its Aripiprazole tablets USP from the U.S. FDA to market the generic version of Abilify tablets.
The tablets are indicated for schizophrenia and irritability associated with autistic disorder.
The product will be commercialised from the company's Ghaziabad plant.
Trading volume on the stock was 10.4 times the 30-day average volume, for this time of the day. Stock price crossed above 50-day moving average on high trading volume.
NSE Nifty Pharma Index Slips Nearly 1%
Ashoka Buildcon Emerges As Lowest Bidder For Goa Six Lane Link Road Construction Project; Shares Climb The Most In Six Weeks
Shares of Ashoka Buildcon Ltd. rose nearly 5%, the biggest intraday gain in six weeks, to Rs 101.3 apiece after the company emerged as the lowest bidder for the construction of six lane link road in Goa on EPC mode. The quoted bid price of the project is Rs 769.41 crore, the company said in an exchange filing.
Of the 18 analysts tracking the company, 17 maintained 'buy' and one maintained 'hold' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 61%.
Larsen & Toubro Advances After Announcing Tie Up With ReNew Power For India Green Hydrogen Projects
Shares of Larsen & Toubro Ltd. rose over 3%, the biggest single day gain in a month, to Rs 1,844.8 apiece after announcing partnership with ReNew Power to jointly develop, own, execute and operate green hydrogen projects in India.
In an exchange filing, the company said that green hydrogen demand would grow up to 2 MMTPA by 2030 for applications like refineries, fertilisers and city gas grids.
L&T and ReNew Power would bid jointly from green hydrogen projects by industries. The two companies would float separate SPVs for individual projects.
L&T's managing director SN Subrahmanyan said that the company is mulling entry into manufacturing of electrolyzers and grid scale stationary batteries.
The company also entered into a distribution agreemnt with Kemroc that will facilitate Kemroc products to be distributed and promotered in the Indian market by L&T. The agreement covers Kemroc-developed special attachments including EK series of Chain Cutters, used in rock trenching. The partnership will help L&T expand its product offers in construction industry in India.
Of the 42 analysts tracking the company, 40 maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 19.5%. Trading volume on the stock was 1.7 times the 30-day average volume, for this time of the day.
S&P BSE Capital Goods Advances 2%
Hindustan Zinc Climbs The Most In Six Weeks After Announcing It Will Consider Interim Dividend On December 7
Shares of Hindustan Zinc Ltd. rose over 4%, the biggest intraday gain in over 6 weeks to Rs 346.95 apiece after the company said that its board of directors will consider and approve dividend on equity shares on December 7.
In an exchange filing, the company said that the record for eligibility for interim dividend will be December 15.
Of the 20 analysts tracking the company, four maintained 'buy', eight maintained 'hold' and eight maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 9.2%.
3i Infotech Has 1.07 Million Shares Change Hands In A Bunched Trade
3i Infotech has 1.07 million shares change hands in a bunched trade.
Details of buyers and sellers are not immediately known.
Source: Bloomberg
Dish TV India Has 5.87 Million Shares Change Hands In A Bunched Trade
Dish TV India has 5.87 million shares change hands in a bunched trade.
Details of the buyers and sellers are not immediately known
Source: Bloomberg
Opening Bell: Sensex, Nifty Open Higher; Infosys Leads Advance
India's stock benchmarks opened higher, aided by gains in information technology, capital goods and consumer durables stocks.
The S&P BSE Sensex rose 0.39% to 58,686.93. The NSE Nifty 50 also advanced by similar magnitude to 17,487.85. Infosys Ltd. contributed the most to the index gain, increasing 1.5%. Larsen & Toubro Ltd. had the largest increase, rising 2.1%.
The broader indices almost mirrored their larger peers with the S&P BSE MidCap and S&P BSE SmallCap adding nearly 0.5%. Barring S&P BSE FMCG and S&P BSE Telecom indices, all the other 17 sectoral indices compiled by the BSE, rose, with S&P BSE Information Technology, Capital Goods and Realty indices leading the gains.
The market breadth was skewed in the favour of bulls. About 1,692 stocks advanced, 617 declined and 96 remained unchanged.
Bond Traders Await Rs 24,000 Crore Rupee Debt Sale
Indian bond traders are awaiting a Rs 24,000 crore ($3.2 billion) weekly sale of bonds.
USD/INR rose 0.1% on Thursday to 74.9913; pair has gained 0.2% this week.
10-year yields were little changed Thursday at 6.35%
Global funds sold a net Rs 910 crore of India stocks Thursday, according to NSE; they bought Rs 218 crore of sovereign bonds under limits available to foreign investors, and added Rs 808 crore of corporate debt
State-run banks bought Rs 120 crore of sovereign bonds on Dec. 2: CCIL data. Foreign banks sold Rs 197 crore of bonds.
Source: Bloomberg
Adani Ports April-November Cargo Volume At 209.45 MMT; Up 43% YoY
Adani Ports and Special Economic Zone Ltd. handled cargo volume of 209.45 MMT in eight months of FY22, a growth of 43% YoY.
Mundra Port crossed 100 MMT during the eight months period.
Container volumes reached 5.5 million TEUs.
Dry cargo volume crossed 100 MMT.
Cargo volume for November at 24.74 MMT vs 23.77 MMT YoY
Source: Exchange Filing
Analyst Actions: Ashok Leyland, Motherson Sumi, Minda Industries
Ashok Leyland raised to 'outperform' from 'neutral' at Macquarie; price target: Rs 162
Motherson Sumi raised to 'outperform' from 'neutral' at Macquarie; price target: Rs 265
Minda Indsutries cut to 'neutral' from 'outperform' at Macquarie; price target: Rs 900
Source: Bloomberg
Hindustan Zinc Board To Consider Interim Dividend On December 7
Hindustan Zinc's board of directors will consider and approve dividend on equity shares, in a meeting on December 7.
The record date for eligibility for interim dividend will be December 15.
Source: Exchange Filing
Analyst Actions: Balkrishna Industries, Bajaj Auto, Eicher Motors
Balkrishna cut to 'neutral' from 'outperform' at Macquarie; price target: Rs 2,250.
Bajaj Auto raised to 'outperform' from 'neutral' at Macquarie; price target: Rs 4,007.
Eicher Motors raised to 'neutral' from 'underperform' at Macquarie; price target: Rs 2,330.
Source: Bloomberg
India Is Said To Plug Gaps For 'Reliable' Jobs Data By Next Year, Reports Bloomberg
Government plans to bridge the gaps in employment data by next year, with officials gathering details on job status of about half a billion workers.
For informal sector, government will derive data from surveys of migrant labourers, domestic workers besides the information submitted through a new online portal.
Source: People familiar with the matter
Zee Entertainment, Sony Closer To Signing Binding Merger Agreement: Economic Times
Zee Entertainment Enterprises Ltd. and Sony Pictures Entertainment Ltd. are likely to sign a binding agreement before Christmas within the 90-day exclusivity period, Economic Times reported, citing unnamed people aware of the negotiations.
The agreement will seek to address issues raised by Invesco about the founder family's stake in the merger entity.
The 9-member Zee board will have five Sony executives including Tony Vinciquerra, chairman and CEO of Sony.
Punit Goenka will continue as CEO and the only one from the founders to have a board seat.
Zee and Invesco declined to comment, while Sony did not respond, according to the report.
Star Health Cuts IPO Size On Tepid Demand
Star Health and Allied Insurance Co. cut the size of its IPO after failing to get bids for all the shares on sale despite extending the offer deadline.
Bidding for the insurer's shares is completed with only 79% of the entire stock being subscribed.
SGX Nifty Hints At Opening Losses; Bharti Airtel, Biocon, ONGC In Focus
Asian stocks were mixed on Friday as traders evaluated risks from the omicron virus strain, while Treasury yields pared a climb spurred by Federal Reserve comments about a quicker reduction in stimulus.
Equities fluctuated in Japan, fell in South Korea and rose in Australia. China and Hong Kong face headwinds: Chinese shares traded in the U.S. slid over the risk of delisting for flouting disclosure rules.
India’s SGX Nifty 50 Index futures for December delivery fall 0.4% to 17,369.50, while MSCI Asia Pacific Index fell 0.4%. The NSE Nifty 50 gained 1.4% on Thursday to 17,401.65.
Treasury yields dipped, retracing some of their jump in the U.S. on Thursday. Fed officials laid out the case for a faster removal of policy support amid high inflation. The dollar was steady.
Crude was higher after OPEC+ proceeded with an output hike but left room for quick adjustments.
Back home, Markit India Services PMI and Composite PMI for November to be released. Foreign investors sold net Rs 2,760 crore of stocks on Wednesday, according to NSDL website.