Sensex, Nifty Snap 3-Day Losing Streak To Log Biggest Single Day Gain In 5 Weeks

Indian equity benchmarks logged the biggest single day gain in five weeks and snapped the three-day losing streak, aided by gains in banking, information technology, metal, realty and telecom stocks.

The S&P BSE Sensex index rose 1.40% to 60,138.46. The NSE Nifty 50 Index advanced by similar magnitude to 17,929.65. Infosys Ltd. contributed the most to the index gain, increasing 1.9%. IndusInd Bank Ltd. had the largest increase, rising 7.8%. Today, 46 of 50 shares rose, while 4 fell.

The broader indexes outperformed their larger peers with the S&P BSE MidCap index adding 1.75% and the S&P BSE SmallCap index gaining over 1%. All the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Realty, S&P BSE Metal and S&P BSE Telecom index rising over 3%.

The market breadth was skewed in favour of bulls. About 2,171 stocks advanced, 1,137 declined and 193 remained unchanged.

"Financial (especially PSU Banks) and Auto stocks were supportive today, while metals and IT counters witnessed selling pressure. An expectation of volume revival in coming months in the backdrop of festive demand and possibility of ease in semiconductor shortage aided automobile stocks to see sharp rebound", Binod Modi, Head Strategy at Reliance Securities wrote in a note and added that "markets witnessed high volatility in recent weeks as no positive surprise from earnings especially due to higher input costs have weighed on investors’ sentiments. Further, concerns over liquidity management by the RBI through V-RRR auctioning this week also weighed on sentiments."

• IPO includes Rs 450 crore fresh issue, sale of 38.4 lakh shares in offer for sale.

• Selling shareholders include PI Ventures, Amicus Capital and Oman India Joint Investment Fund.

• Funds to be used toward augmentation of Tier-I capital base.

• Bankers to the issue include Edelweiss Financial Services, Axis Capital and SBI Capital Markets.

Source: Draft Red Herring Prospectus

• Mindtree Ltd. has launched Digital Health Passport for Travel, a solution that aims to improve experience of global travelers in navigating changing travel regulations and restrictions related to Covid-19.

• The solution enables users to locate Covid-19 testing providers, schedule tests and allows digital storage of test results, vaccine certifications and other travel documents.

• The solution is targeted at airlines, hotels, cruise lines, airports, government agencies, car rental firms, and even by companies to monitor and manage workplace safety when offices reopen.

Source: Exchange Filing

Thermax Ltd. announced expansion of its solar business, moving from Capex model to Opex model. The solar business, to be helmed by First Energy Private Ltd., a subsidiary, will set up open access based solar and solar hybrid farms, the company said in an exchange filing.

Navjit Gill has been appointed as the Chief Executive Officer of First Energy Pvt. Ltd. Navjit was associated with SB Energy as the Chief Commercial Officer for their solar business.

• GST collection for October 2021 is second highest since GST implemented, says finance ministry.

• September gross GST revenue collected in October at Rs 1,30,127 crore

• October 2021 revenue is 24% higher than in October 2020.

• CGST: Rs 23,861 crore, SGST: Rs 30,421 crore

• IGST: Rs 67,361 crore (including Rs 32,998 crore collected on import of goods)

• Cess: Rs 8,484 crore (including Rs 699 crore collected on import of goods)

Source: PIB Statement

• Lupin cut to 'accumulate' at KR Choksey; Price target: Rs 978

• Shree Cement raised to 'hold' at IDBI Capital Market; Price target: Rs 27,750

• Escorts cut to 'underperform' at DAM Capital; Price target: Rs 1,202

Source: Bloomberg

Indian Railway Catering & Tourism Corporation Ltd. reported a sequential growth in net income and revenue in the September quarter.

• Net income at Rs 158.57 crore vs Rs 82.52 crore QoQ

• Revenue at Rs 404.93 crore vs Rs 243.37 crore QoQ

• Total costs at Rs 207.37 crore vs Rs 146.86 crore QoQ

• Othe income at Rs 16.12 crore vs Rs 14.57 crore QoQ

Of the seven analysts tracking the company, four maintained 'buy' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 32%

Shares of Whirlpool India Ltd. fell nearly 5.5% in intraday trade to Rs 2,092 apiece after the company reported net income for the second quarter that missed the average analyst estimate

September Quarter Results (QoQ)

• Net profit at Rs 78.49 crore vs Rs 23.34 crore (Bloomberg Consensus Estimate: Rs 126 crore)

• Revenue at Rs 1,607.10 crore vs Rs 1,340.61 crore (Estimate: 1,830 crore)

• Total costs at Rs 1,516.25 crore vs Rs 1,321.92 crore

• Other income at Rs 18.13 crore vs Rs 14 crore

Of the 16 analysts tracking the company, eight maintained 'buy', two maintained 'hold' and six maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 4.1%.

• September : 25,730

• October : 33,925

• Rise: 32%

Source: Exchange Filing

India's stock benchmarks advanced, aided by gains in telecom, metal and realty stocks, amid positive global cues.

The S&P BSE Sensex rose 0.56% to 59,640.48. The NSE Nifty 50 index advanced by similar magnitude to 17,789.10.Infosys Ltd. contributed the most to the index gain, increasing 1.3%. IndusInd Bank Ltd. had the largest increase, rising 6.9%. In midday trading, 41 of 50 shares rose, while 9 fell.

The broader indexes almost mirrored their larger peers with the S&P BSE MidCap index adding over 1% and the S&P BSE SmallCap index rising 0.75%. Barring S&P BSE Energy, all the other 18 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Realty index gaining nearly 5%.

The market breadth was skewed in favour of bulls. About 2,021 stocks advanced, 1,174 declined and 169 remained unchanged.

• September : 86,380

• October : 1,38,335

• Rise : 60%

Source: Exchange Filing

• Coromandel International cut to 'neutral' at Phillip Securities; Price target: Rs 890

• Shree Cement raised to 'accumulate' at Nirmal Bang; Price target: Rs 28,638

• Embassy REIT raised to 'buy' at Nirmal Bang; Price target: Rs 403

Source: Bloomberg

• September: 9,533

• October: 11,079

• Rise: 16.2%

Source : Exchange Filing

• Steel Strips Wheels Ltd. achieved a net turnover of Rs 300.58 crore in October vs Rs 175.29 crore in October 2021, recording a growth of over 71%YoY.

• Gross turnover in October was Rs 355.73 crore vs Rs 214.64 crore YoY, up 65.8% YoY

• Barring 2- & 3-Wheelers segment, all the other segment registered growth in October with Exports segment rising nearly 200% and truck segment advancing over 100%.

Source: Exchange Filing

Bank of Baroda Ltd. has approved issuance of Basel III Compliant Additional Tier 1 (AT 1)/Tier II Bonds for aggregate total issue size of Rs 3,000 crore in single or multiple tranches. In an exchange filing, the lender said that the designation committee of the board, Capital Raising Committee gave its node for the fund raise on Monday.

• Indian government bonds edge slightly higher in a holiday-truncated week. The rupee is lower along with most emerging Asian peers. 

• 10-year yields fell 1bps to 6.38%; FX and bond markets will be shut on Thursday and Friday for local holidays

• USD/INR up 0.1% at 74.9275 on Monday

Source: Bloomberg

VECV (Volvo Eicher Commercial Vehicles) sales fall 4.36% in October

• September : 6070

• October : 5805

• Fall : 4.36%

Source : Exchange Filing

• Dr. Reddy's Laboratories Ltd. raised to 'buy' at ICICI Securities; Price target: Rs 5,534

• Cadila Healthcare Ltd. raised to 'hold' at ICICI Securities; Price target: Rs 510

• DCB Bank Ltd. raised to 'buy' at IDBI Capital Market; Price target: Rs 107

Source: Bloomberg

Tata Consultancy Services Ltd. expands its partnership with Celcom Axiate Berhad, leading telecommunications provider in Malaysia, to transform the company's core business support systems using TCS HOBS and TCS TwinX, hosted on Microsoft Azure.

TCS will enable Celcom to enhance its digital and platform positioning using advanced AI/ML-driven simulations.

Most yields along the India sovereign yield curve fell, with 14-year bonds moving the most in Monday morning trading.

• The 5-year yield fell 0.9bps to 5.752%

• The 10-year yield fell 1.4bps to 6.374%

• The 18-year yield remained unchanged at 6.849%

• The 5-year-10-year yield spread was 62.2bps, vs previous close 62.7bps

• Shares of Shilpa Medicare Ltd. rose nearly 5% in intraday trade to Rs 611.95 apiece after the company got permission to conduct Phase 1 human clinical study on its recombinant Human Albumin.

• The market for plasma Albumin as a drug is estimated at $5.5 billion globally and growing at an average of 6% per annum.

Source: Exchange Filing

Trading volume on the stock was 1.7 times the 30-day average volume, for this time of the day.

• Bharat Electronics cut to 'reduce' at Kotak Securities; Price target: Rs 210

• Bajaj Finserv cut to 'sell' at Kotak Securities; Price target: Rs 15,100

• NTPC cut to 'add' at Kotak Securities; Price target: Rs 150

Source: Bloomberg

• Capital Small Finance Bank Ltd. has sought approval from the Indian markets regulator SEBI to raise Rs 450 crore selling new shares of face value Rs 10 each in an initial public offering, an advertisement in the Financial Express newspaper Monday.

• The bank’s PE investors and existing shareholders plan to sell as many as 3.84 million shares in an offer-for-sale as part of the IPO

• The Punjab-based lender is planning a pre-IPO placement of Rs 90 crore of shares; new share sale will be lower if the pre-IPO sale happens

• Edelweiss Financial, Axis Capital and SBI Capital Markets will manage the IPO

Source: Bloomberg

• Sun Pharmaceutical Industries Ltd. announced the availability of WINLEVI cream (Clascoterone) in the U.S. The cream was approved by the U.S. FDA in August 2020 and is used for the treatment of acne vulgaris in patients 12 years of age and older.

• The most prevalent skin condition in the U.S., acne affect up to 50 million Americans annually.

Source: Exchange Filing

Of the 40 analysts tracking the company, 34 maintained 'buy', three maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 9.5%.

Shares of Bandhan Bank Ltd. declined by over 6% in intraday trade, to Rs 273.45 apiece after the lender reported a loss in the second quarter due to sharp increase in provisioning.

Bandhan Bank Q2FY22 (Consolidated)

• NII up 1% at Rs 1,935.41 crore Vs Rs 1,923.09 crore (YoY)

• Net loss of Rs 3,008.59 crore Vs Net profit of Rs 920.01 (YoY)

• GNPA at 10.82% Vs 8.18% (QoQ)

• NNPA at 3.04% Vs 3.29% (QoQ)

Here's what brokerages have said of the company's September quarter earnings

Jefferies

• Maintains 'buy' with the target price reduced to Rs 350 from Rs 370 earlier, implied return of 20.09%

• Improvement in collections since September a positive.

• Provisioning towards NPLs and restructuring of 11% of loans pushed the bank into loss.

• Housing finance book is struggling due to competitive pricing in the segment, but recent cut in lending rates is expected to have a positive impact.

• See merit in management's assessment of adequate provisions to stressed assets .

• See potential for marked drop in restructured loans

• Expect slippages to stay above normal during H2FY22 as collections are yet to normalise, but the impact on credit costs can be lower due to the buffers built.

• Improvement in asset quality outlook will be a key re-rating trigger.

• See RoE's improving towards 20% from FY23 onwards.

ICICI Securities

• Maintains 'buy' with the target price reduced to Rs 390 from Rs 441 earlier, an implied return of 33.81%

• Company arrived at a provisioning requirement through its assessment of recoveries from collections.

• With 50% coverage on overall stress pool and improving collection trends, credit cost normalisation is expected in a couple of quarters.

• Sudden recognition to create provisioning has eroded the book value by 14% for FY22E, prompting a revision of target price.

• Assam state government relief and incentive for MFI loans is a positive as more than 25% of EEB portfolio is eligible for the incentive.

Of the 29 analysts tracking the company, 20 maintained 'buy', four maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 21.3%

• September : 8,816 units

• October : 13,514 unites

• Rise : 53.28%

Source : Exchange filing

Indian equity benchmarks opened higher, aided by gains in telecom, metals, oil and gas and information technology stocks, amid positive global cues.

The S&P BSE Sensex rose 0.69% to 59,714.95. The NSE Nifty 50 advanced by a similar magnitude to 17,806.55. Infosys Ltd. contributed the most to the index gain, increasing 1.3%. Bharti Airtel Ltd. had the largest increase, rising 2.9%. In early trading, 32 of 50 shares rose, while 18 fell.

The broader indexes almost mirrored their broader peers with the S&P BSE MidCap index and the S&P BSE SmallCap adding over 0.5%. All the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Telecom index rising nearly 3.5%.

The market breadth was skewed in favour of bulls. About 1,593 stocks advanced, 536 declined and 114 remained unchanged.

Oberoi Realty Ltd. launched a new tower in the Elysian project at Oberoi Garden City, Goregaon on October 28. With the launch, Oberoi Realty has recorded gross booking value of Rs 787 crore from 3.90 lakh square feet, till date. The cumulative gross booking value for this year so far stood at Rs 2,705 crore.

JSW Steel Ltd.'s subsidiary JSW Steel (USA) commenced second phase of the project to upgrade its Plate Mill facility in Texas. The phase II project begins today and will be completed in the second half of 2023, the company said in an exchange filing. The upgrade is expected to improve product quality, productivity and cost-effectiveness of the plate mill operations.

• Bajaj Finserv raised to 'accumulate' at KR Choksey; Price target: Rs 19,674

• UPL raised to 'buy' at Asian Markets; Price target: Rs 880

• DLF raised to 'buy' at Spark Capital Advisors; Price target: Rs 450

Source: Bloomberg

• Bajaj Finserv cut to 'add' at Spark Capital Advisors; Price target: Rs 17,265

• Cummins India raised to 'reduce' at Spark Capital Advisors; Price target: Rs 826

• Sudarshan Chemical Industries raised to 'buy' at ICICI Securities; Price target: Rs 668

Source: Bloomberg