Sensex, Nifty Clock Their Longest Winning Streak In Over A Month

Indian equity benchmarks ended higher for the third day, registering their longest gaining streak in over a month.

The S&P BSE Sensex Index closed 0.9 percent higher at 35,774.88 and the NSE Nifty 50 Index ended at 10,763.40, up 0.76 percent. Both the benchmark indices ended at over a one-month high.

The market breadth was tilted in favour of buyers. Nine out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty FMCG Index's 1.7 percent gain.on the flipside, NSE Nifty PSU Bank Index was the top sectoral loser, down 0.75 percent.

Shares of the air conditioner manufacturer rose as much as 10.4 percent to trade at over a two-month high at Rs 674.90.

Trading volume was 43.8 times its 30-day moving average, Bloomberg data showed. The Relative Strength Index (RSI) was at 72, indicating that the stock may be overbought.

The government will next week launch the fourth tranche of CPSE Exchange Traded Fund to garner up to Rs 14,000 crore, investment banking sources told PTI.

The government has already raised Rs 11,500 crore in the earlier three tranches of the ETF, which functions like a mutual fund scheme and the issue will open early next week and investors would get 3.5-4 percent discount over the issue price, PTI reported quoting sources.

• Federal Bank: About 11.5 lakh shares changed hands in a single block deal.
• HDFC Standard Life: About 18.5 lakh shares changed hands in a single block deal.

Shares of Yes Bank rose as much as 7.6 percent, the most in over two weeks to Rs 205.50.

A search panel entrusted with finding Rana Kapoor's successor to lead Yes Bank has shortlisted multiple names, including those serving a foreign as well as domestic lenders, two sources told PTI on Friday.

The stock was the best performer on Sensex and Nifty. The scrip declined 34.9 percent so far this year compared to a 6.1 percent advance in the Sensex.

Shares of the pharmaceutical company rose as much as 1.2 percent to hit a new all-time high at Rs 1,578.

The stock traded at 30.1 times estimated forward earnings per share compared to 21.8 times for the two-year historical average, Bloomberg data showed.

Shares of Orient Refractories rose as much as 9.5 percent, the most since Aug. 27 to trade at over a month high at Rs 240.95.

The company announced the merger of RHI India and RHI Clasil with itself, according to its stock exchange notification.

Trading volume was more than 11 times its 20-day average, according to Bloomberg data. The stock rose 55 percent in the past 12 months.

European equities advanced after tumbling last week on geopolitical concerns.

The Indian rupee pared losses against the U.S. dollar amid the ongoing RBI board meeting. The home currency appreciated as much as 0.21 percent to trade at 71.77 against the greenback.

Shares of the lamps and lighting accessories maker rose as much as 3.7 percent to Rs 224.70.

The company bagged order of Rs 59 crore for manufacturing, testing and supplying of LED street lights and poles from the government of Odisha, according to its stock exchange notification.

The stock declined 43 percent in the past 52 weeks, Bloomberg data showed.

• Bank of Baroda: About 25 lakh shares changed hands in a block deal on NSE.
• CG Power & Industrial Solutions: About 40 lakh shares changed hands in a block deal on NSE.
• Jaiprakash Power: About 11.4 lakh shares changed hands in a single block.

• Indian equity benchmarks came off day's high and traded rangebound.
• The S&P BSE Sensex Index traded 0.36 percent higher at 35,583.22 and the NSE Nifty 50 Index traded at 10,712, up 0.28 percent.
• About 874 stocks advanced and 782 shares declined on National Stock Exchange.

The Supreme Court rejected Dalmia Bharat’s plea challenging NCLAT’s approval for the sale of Binani Cement to UltraTech Cement, Bloomberg reported. (More details here)

Shares of the chemicals and fertilisers maker fell for the seventh straight trading session and is poised for its longest losing streak since Oct. 09.

The company confirmed that the Income Tax department carried out search operations, without disclosing additional details.

The stock fell 6.5 percent in the past five days and rose 0.2 percent in the past 30 days, Bloomberg data showed.

Gayatri Projects forecasts revenue growth of 25-30 percent in FY19-21, the company said in its investor’s presentation today. The company expects to add Rs 6,000 crore every year during the period.

Shares of the construction services provider rose as much as 5.7 percent to Rs 188.50.

Nifty's 10,800 call option contract was among the most active option contracts on the National Stock Exchange.

Premium on the contract rose 9.9 percent to Rs 65.90. Over 1.63 lakh shares were added to the open interest which stood at over 35.71 lakh shares.

Shares of the paper products maker snapped a six-day decline, its longest losing streak in over a month. The stock rose as much as 6 percent to Rs 1,198.95. The company announced its quarterly results for the July-September period.

Key earnings highlights (Q2, YoY):

• Net sales up 45.8 percent to Rs 331 crore.
• Net profit up 92 percent to Rs 50.4 crore.
• Ebitda jumped 70.6 percent to Rs 82 crore.
• Margin stood at 24.7 percent versus 21.1 percent.

Key highlights from the conversation:

• Private sector banks and Auto are the key sectors to watch.
• Valuations in cements sector are stretched and we are witnessing a pricing power problem.
• Seeing an opportunity in mid-sized banks space.
• Worst of NPA cycle is behind us.
• The results of steel companies have been good.
• Auto numbers are not going to go down soon.
• Seeing improvement in the market earnings.
• Level of market uncertainty is not going down soon.

Watch the full conversation here:

Shares of Tata Investment Corp rose as much as 7.9 percent to trade at near a five-month high at Rs 890.

The company’s board approved buyback of 45 lakh shares, representing 8.17 percent of total paid-up capital, at Rs 1,000 per share, aggregating to Rs 450 crore, according to its stock exchange notification.

Trading volume was 30 times its 20-day average, Bloomberg data showed. The Relative Strength Index (RSI) was above 70, indicating that the stock may be overbought.

Shares of Jet Airways fell as much as 12.5 percent, the most since Aug. 10 to Rs 303.05.

On Friday, Tata Sons has said that talks to buy a stake in cash-strapped airline Jet Airways (India) Ltd. are in early stages and there hasn’t been any decision taken yet. (more details here)

The stock has declined 61.6 percent so far this year compared to a 5.9 percent advance in the Sensex.

Shares of the pharmaceutical company rose for the sixth straight trading session and is poised for its longest winning streak in nearly three months. The stock rose as much as 2.8 percent, to Rs 2,546.80.

The drugmaker received zero observations from the audit of formulations plant in Andhra Pradesh by the U.S. FDA, according to its stock exchange notification.

Dr. Reddy's traded at 26 times its estimated earnings per share for the coming year, Bloomberg data showed.

Indian equity benchmarks extended gains for the third day and are poised for their longest winning streak in over a month.

The S&P BSE Sensex Index rose as much as 0.56 percent to 35,655.78 and the NSE Nifty 50 Index rose as much as 0.46 percent to 10.731.45.

The market breadth was tilted in favour of buyers. All the sectoral gauges compiled by National Stock Exchange advanced, led by the NSE Nifty Pharma Index's 1.2 percent gain.

The Indian rupee opened marginally lower against the U.S. dollar ahead of the RBI board meeting.

The home currency further depreciated as much as 0.1 percent to trade at 72.01 against the greenback.

The traders will await a key central bank board meeting later on Monday to see whether the government and RBI reach a truce over key issues like easing rules for weak banks, providing liquidity to non-bank finance companies and framing a new capital framework for the RBI.

On Friday, Bloomberg News reported that India's government had proposed changing rules that will enable closer supervision of its central bank. The rupee dropped in offshore markets after the news broke, down from 71.92 on Friday.

The home currency rose 0.8 percent last week amid a drop a drop in crude oil prices. According to RBC Capital, if central bank independence comes under attack, the risks are to the downside for the rupee.

Meanwhile, bonds are likely to be helped by the hopes that liquidity conditions will be eased. Finance Minister Arun Jaitley said on Saturday that economic growth should not suffer due to lack of liquidity in the banking system. The benchmark 10-year bond yield rose six basis points to 7.82 percent on Friday; up five basis points on week after falling in each of five previous weeks.

F&O Cues

• Nifty November futures closed trading at 10,687, premium of 8 points.
• Nifty November Open Interest up 2.4 percent; Nifty Bank November OI down 2.4 percent.
• Max OI for November series at 10,800 Call, OI at 34 lakh shares.
• Max OI for November series at 10,000 Put, OI at 47.2 lakh shares.

Stocks In F&O Ban

• In ban: Adani Power, Adani Enterprises
• Out of ban: Jet Airways
• New in ban: Adani Enterprises

Put-Call Ratio

• Nifty PCR at 1.64 from 1.57.
• Nifty Bank PCR at 1.26 from 1.20.

Deutsche Bank on Power Grid

• Maintained ‘Hold’ with a price target of Rs 216, implying a potential upside of 14.8 percent from the last regular trade.
• Sweating of assets is a good strategy.
• Large capex plans to support government programs.
• To see lesser dividends, alternate usage of cash in non-core areas.

Deutsche Bank on tyre companies

• Continued volume growth across companies.
• Price hikes taken to counter commodity cost pressures.
• Forecast FY18-21 EPS CAGR of 16-26 percent.
• Apollo Tyres remains top pick.
• Remain constructive on MRF, CEAT
• Apollo Tyres: Maintained ‘Buy’ with a price target of Rs 300, implying a potential upside of 32.6 percent from the last regular trade.
• MRF: Maintained ‘Buy’ with a price target of Rs 80,000, implying a potential upside of 21 percent from the last regular trade.
• Ceat: Maintained ‘Buy’ with a price target of Rs 1,570, implying a potential upside of 25.4 percent from the last regular trade.

JP Morgan on NMDC

• Maintained ‘Overweight’ with a price target of Rs 145, implying a potential upside of 43 percent from the last regular trade.
• Donimalai mine renewal issue becomes more difficult.
• There could be a long legal route ahead and possibility of production being lost.
• Potential loss of production creates near-term earnings risk.

Citi on Nestle

• Maintained ‘Buy’, with a price target of Rs 11,800, implying a potential upside of 10.4 percent from the last regular trade.
• Our forecasts call for volume growth of 8-9 percent over the next two years.
• Cluster strategy should result in faster execution and decision making.
• Nestle is still trading at a discount to its average premium to the sector.

• Natco Pharma buy-back window opens.
• RCI Industries & Technologies price band revised to 10 percent.

• Indiabulls Housing Finance: Principal Global Investors LLC sold 27,000 shares at Rs 767.26 each.
• Info Edge: Aranda Invest (Mauritius) sold 11.7 lakh shares or 0.96 percent equity at Rs 1,370.39 each.

Vikas Ecotech

• Nomura Singapore acquired 70 lakh shares or 2.50 percent equity at Rs 14 each.
• Promoter Vikas Garg sold 1.1 crore shares or 4.07 percent equity at Rs 14 each.

Mindtree

• Copthall Mauritius Investment sold 16.9 lakh shares or 1.03 percent equity at Rs 840 each.
• Northern Multi Manager Emerging Markets Equity Fund acquired 16.9 lakh shares or 1.03 percent equity at Rs 840 each.

Tejas Networks

• Aditya Birla Sun Life MF acquired 11.4 lakh shares or 1.25 percent equity at Rs 257 each.
• Intel Capital (Cayman) Corporation sold 13.6 lakh shares or 1.49 percent equity at Rs 257.03 each.

Seshasayee Paper (Q2, YoY)

• Net sales up 45.8 percent to Rs 331 crore.
• Net profit up 92 percent to Rs 50.4 crore.
• Ebitda jumped 70.6 percent to Rs 82 crore.
• Margin stood at 24.7 percent versus 21.1 percent.

Siemens (Q4CY18, YoY)

• Revenue up 25.4 percent at Rs 3,939.2 crore.
• Net profit down 55.2 percent at Rs 279.2 crore.
• Company had an exceptional gain of Rs 560 crore in the year-ago period.
• Reported Ebitda up 31.9 percent at Rs 418.6 crore.
• Margin at 10.6 percent versus 10.01 percent.

• Titagarh offer-for-sale share in Cimmco for retail investors gets 92 percent demand on the second day of sale; Non-retail portion gets 5 percent demand on Nov. 15.

• Nestle pitted against Unilever in the final round of negotiations for GlaxoSmithKline’s consumer nutrition business (Economic Times)
• Global and Indian investors eye Raymond’s land parcel. The potential suitors includes Prestige Estates, Purvankara Projects among others. (Economic Times)

• Tata Sons said that talks to buy a stake in cash-strapped airline Jet Airways are in early stages and there hasn’t been any decision taken yet.
• Vodafone India clarified that the company has not considered any proposal to sell fibre assets to Bharti Infratel and the news is factually incorrect.
• Dr. Reddy’s Laboratories received zero observations from audit of formulations plant in Andhra Pradesh by the U.S. FDA.
• Tata Investment Corporation’s board approves buyback of 45 lakh shares, representing 8.17 percent of total paid-up capital, at Rs 1,000 per share, aggregating to Rs 450 crore.
• Power Grid Corporation’s board approved increasing shareholding limit of foreign portfolio investors to 35 percent of the paid-up capital.
• Infosys completed the formation of joint venture with Singapore based global investment company - Temasek, to further strengthen its footprint in South East Asia.
• BSE has decided to snap ties with S&P Dow Jones, which manages and operates the benchmark Sensex, and plans to develop indices through its own in-house development team.
• SRF said that its technical textiles unit in Tamil Nadu has been damaged by Cyclone Gaja. The company stated that they have adequate insurance cover for the unit and steps are being undertaken to restore normal operations.
• Deepak Nitrite confirmed that the Income Tax department carried out search operations, without disclosing additional details.
• Shalimar Paints proposed rights issue of 3.4 crore equity shares at Rs 64.5 per share. The company plans to raise Rs 217 crore through the issue.
• LKP Finance’s acquirer Dakshin Mercantile announced an open offer for 26 percent stake in the company at Rs 198 per share.

• The Reserve Bank of India board discusses government demands to give up some surplus reserves and loosen liquidity norms for lenders on Monday.
• Bank of England Governor Mark Carney appears before parliament on Tuesday.
• It’s a holiday-shortened week and Black Friday, the day after Thanksgiving, marks the traditional start to the U.S. holiday shopping season.

• West Texas Intermediate crude traded at $57.15 a barrel, up 1.2 percent.
• Brent crude traded higher for the fourth day, up 0.9 percent at $67.33 per barrel.
• Gold slid 0.1 percent to $1,222.53 an ounce.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.5 percent to 10,751 as of 7:50 a.m.

Most Asian stocks posted modest gains Monday even as U.S.-China trade tensions showed no sign of improvement over the weekend. Equities from Tokyo to Hong Kong rose, while Australian shares retreated.

Short on time? well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell podcast.