PremiumNEW DELHI : Benchmark indices saw strong trade in the green in the latter half of the day. On NSE, financial services, IT, Media, Metal, Pharma, PSU Banks, and realty all gained over 1%. On BSE, basic materials, industrials, information technology, utilities, capital goods, consumer durables, metal, oil and gas, power, realty and teck showed over 1% gains.
Nifty made a bullish bar today. It closed above its resistance of 18,050 at 18,083 , up by 165 points. Volumes in Nifty were higher than its average volumes , which is a good sign. Nifty may now test 18,150 and 18,200 levels. Nifty has support at 17,800 and 17,950 levels.
The markets rose to post its tepid opening and we have managed to close above the 17,950-18,000 level, which is a positive sign. This needs to be maintained for a couple of sessions and that would then open the doors for the index to scale higher towards 18,400-18,500. Since good support lies around the 17,550-17,600 level, dips can be utilized to accumulate long positions.
Benchmark indices saw strong trade in the green in the latter half of the day. Sensex closed the day's trading at 60,545.61, up 477.99 points, or 0.80%, while Nifty closed at 18,068.55, up 151.75 points, or 0.85%. On NSE, financial services, IT, Media, Metal, Pharma, PSU Banks, and realty all gained over 1%. On BSE, basic materials, industrials, information technology, utilities, capital goods, consumer durables, metal, oil and gas, power, realty and teck showed over 1% gains. IOC, Titan and Bajaj Financial Services were the top gainers on Nifty, while IndusInd Bank, Divi's Labs and M&M were top losers.
Sensex and Nifty rallied from lows hit after paring early gains in the morning to go above the 60,500 and 18,000 marks. The strong upward movement has continued pushed by stocks across sectors.
The company also said its Q2 revenue of ₹12.9B was higher than ₹13 billion year-on-year. Profits were lower y-o-y and the results missed street estimates
MSCI will announce its semi annual index rejig on Friday, November 12, 2021 and brokerage house Edelweiss believes that stocks like Zomato, SRF, Tata Power, Mindtree, Godrej Properties, IRCTC, and Mphasis could see the inclusion in the index. If all of the above seven names, which are under Edelweiss' high conviction inclusion list, get included then India can see passive flow of around $1.3 billion, the brokerage firm said in a note. Though, it believes that IPCA Labs and REC Limited could see exclusion from the Standard Index. (Read here)
Kotak Mahindra Bank has revised home loan interest rate to 6.55% per annum, which is valid from 9 November to 10 December 2021 (both days inclusive). In September, the bank had kick-started the festive season by introducing home loan interest rates beginning at 6.50% per year; it was a limited period festive season offer that ends today.
World shares steadied near record peaks on Monday as risk assets found support from an upbeat US October payrolls report, but they face another test later in the week from a reading on US inflation. The congressional passage of a long-delayed $1 trillion infrastructure bill also cheered investors, though a broader social safety net plan remains elusive. Data out over the weekend also showed China's exports beat forecasts in October to deliver a record trade surplus, although a miss on imports added to evidence of a slowing in domestic demand. Moves were modest with the pan-European STOXX 600 benchmark was little changed in early trading, while the MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2%. Nasdaq futures were off 0.2%, after 10 straight sessions of gains which left the index looking overextended. S&P 500 futures dipped less than 0.1%. World shares were flat at 757.24 points by 0837 GMT after hitting a record high last week as relatively dovish central bank messages and the strong labour data in the United States added to optimism generated by a healthy earnings season on both sides of the Atlantic.
Shree Cement share rose 1.16% to ₹29,374.95 after CARE Ratings reaffirmed its rating on the commercial paper of the company worth ₹400 crore at 'CARE A1+'. The announcement was made on 6 November 2021.
Market Infrastructure Institutions (MIIs) have finalized the road map for the implementation of T+1 settlement cycle. Stock exchanges, clearing corporations and depositories are MIIs. The T+1 settlement cycle will be implemented in a phased manner and the first list of securities with T+1 settlement cycle will begin from trade date starting from 25 February 2022.
Titan and Ultratech Cement are among top gainers on Nifty, while IndusInd Bank and Divis Lab are the top losers. IndusInd Bank slipped over 10% in the wake of reports about whistle-blower allegations that the bank was evergreening loans.
One97 Communications IPO has been subscribed 0.11 times overall and 0.57% in the retail individual investor category.
Bank of New York Mellon Corp. will sever ties with billionaire Gautam Adani’s contentious Carmichael thermal coal mine in Australia, the latest global financial institution to distance itself from the project. “BNY Mellon has decided to resign from all legacy transactions with Adani in Australia and will not pursue additional transactions," the US lender said in a statement. “BNY Mellon has determined this business is not aligned with our ESG principles." Adani Group didn’t immediately respond to an email seeking comment. Bloomberg
The National Company Law Tribunal (NCLT) has granted approval to GAIL for it to acquire 26% equity stake currently held by Infrastructure Leasing & Financial Services (L&FS) group in ONGC Tripura Power Co. Ltd. The stake is being held by IL&FS Group companies IL&FS Energy Development Company Ltd (EDCL) and IL&FS Financial Services Ltd (IFIN).
Consumer durables, oil and gas, realty, power, capital goods, industrials and basic materials over 1% gains. Healthcare, banking drag
Sensex crossed the 60,400 mark, while Nifty was above 18,000 at 1:10 pm.
BSE Consumer Durables index gained over 2%, led by Whirlpool and Titan. Titan gained over 4% on the back of uptick in gold demand amid festivities.
Sterling pound
The Sterling pound plunged by around 2.50%, touching the lower levels of 1.3422 in the last week. This negative trend impacted GBP-INR as well which saw a fall of around 1.50% touching the lower levels of 99.73 in the holiday-shortened week last week. Reason for the same could be attributed to the release of the BoE Monetary Policy Statement where the committee surprised the markets by leaving the policy rate unchanged.
Markets had expected the BoE to hike interest rates in the face of the inflation threat, but the central bank’s Monetary Policy Committee voted 7-2 in favour of keeping the key rate at 0.1%. BOE concluded that the existing stance of monetary policy remained appropriate. The BoE’s decision prompted a big drop in yields. Defending his position, the Bank of England (BOE) Governor Andrew Bailey stated that his remarks on the need to curb inflation before the meeting were “conditional". Keeping the above factors in mind, there is a possibility that GBP-INR (CMP: 100.08) may continue to trade with a bearish bias towards 99.00 levels amidst Brexit concerns and BOE’s dovishness.
Sapphire Foods is YUM’s largest franchisee operator in the Indian subcontinent with revenue from operations of ₹1,340 crore and ₹1,020 crore for the financial years 2020 and 2021, respectively. As of 30 June, they owned and operated 209 KFC restaurants in India and the Maldives, 239 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and 2 Taco Bell restaurants in Sri Lanka. Total number of restaurants are 450 as of 30 June.
Positives: Sapphire is YUM's largest franchise operator in the Indian subcontinent in terms of revenue. It has a portfolio of well-recognized global brands across spectrum. It has a scalable business model and an experienced board and senior management team.
Investment concerns: SFIL is making continuous losses on bottom-line front, hence profit concerns remain; slowdown in the economy could impact the overall revenue of the company (discretionary in nature).
Outlook and valuation: In terms of valuations, the post-issue FY21 EV/sales works out 7.4x to (at the upper end of the issue price band), which is low compared with peers Devyani International (FY21 EV/Sales -16.3x). Further, Sapphire Foods India has a better revenue per store compared to Devyani International. On the EBITDA front, the company is continuously showing improvement. Considering all the positive factors, we believe this valuation is at reasonable levels. Thus, we recommend a subscribe rating on the issue.
Money Control has reported that Zomato is likely to pump in $75 million in a $200 million round.
The index has seen close to 1% gain cumulatively. It has 19 advances and 11 declines.
Retail individual investors have subscribed 0.43 times of the shares allotted for the category. 2,310 shares of the 26,394,231 allotted for the Qualified Institutional Investor category have been subscribed, while 53,076 of the 13,197,115 allocated for the non-institutional investors category have been subscribed as of 11:50 am.
SoftBank Group Corp slipped into the red with a 397 billion yen ($3.5 billion) loss for the July-September quarter, hit by falling valuations in the tech portfolio of its Vision Fund unit. The loss compared with a profit of 628 billion yen in the same period a year earlier.
Shares tied to reopening trades from casinos to airlines surged in Asia on Monday after Pfizer Inc. said that its covid-19 pill could reduce hospitalizations and deaths in high-risk patients by 89%. A Bloomberg gauge of Macau casino shares jumped 7.2%, the biggest move in over two months, while an index of Asia-Pacific airline stocks rallied as much as 5.5%, the most since March. Luggage manufacturer Samsonite International SA climbed 15% in Hong Kong. The buying frenzy in Asia—which tracks gains among similar stocks in the US—comes as Pfizer looked to become the second pharmaceutical company to offer an oral pill to combat the virus. While Pfizer’s drug has yet to receive emergency authorization from US regulators, investors say that it shows promise to help ease the pandemic globally and accelerate a return to travel. Bloomberg
Ultratech Cement, Titan and Bajaj Financial Services are among top gainers on the Sensex, while IndusInd Bank, Mahindra and Mahindra and Reliance have been top losers as of 11:15 am.
Sensex and Nifty were trading flat at 11:11 am. Broader indices have all rallied into green.
The construction arm of Larsen and Toubro has secured “significant"orders for its businesses in India. Significant refers to projects in the cost range of ₹1,000 crore to ₹2,500 crore. The metallurgical and material handling (MMH) business has been awarded an engineering, procurement and construction (EPC) order for 12 MTPA dry circuit systems on a turnkey basis for a screening plant (SP-Ill) from NMDC Ltd at their Kirandul Complex, Chhattisgarh. The scope of work includes tertiary crushing, 2-stage screening, stacking, reclaiming and dispatch of iron ore along with the associated civil, structural, E&l and other auxiliary facilities. Also, the buildings and factories (B&F) business has secured a prestigious order from DRDO to construct their Flight Control System Facility at ADE, Bengaluru. The project involves construction of a 1.2 lakh sq. ft facility consisting of Gro,tmd + 6 Floors in an extremely fast track timeline of 4 months. The project will demonstrate L&T's technological expertise in modular offsite construction with composite truss beam technology that will be used for the Structure, an exchange filing from the company read.
Retail Individual Investors (RIIs) have bid for 3,013,062 out of 8,798,076 shares on offer as of 10:53 am.
Man lnfraconstruction Limited has informed exchanges that its promoters Parag K. Shah and Mansi K. Shah have acquired a total of 500,000 shares of the company from the open market.
The Nifty PSU bank index has gained over 1% powered by J&K Bank, Union Bank, Canara Bank and Bank of Baroda. SBI is among drags on the index.
Sensex was at 59,894.49, down 173.13 points, or 0.29% at 09:51 am, while Nifty was at 17,865.90, down 50.90 points, or 0.28%.
The Index has opened flat and continues to trade in an indecisive mode. The support for this market lies at 17,550-17,600 and until we do not break that on a closing basis, the trend of the Nifty is positive. On the upside, there is resistance at 17,950-18,000. We need to get past that for an upside momentum to trigger.
Nifty is expected to open positive at 17,970, up by 60 points. Since the last few trading sessions Nifty has been correcting and charts suggest it may continue doing so for the next few sessions. Traders are suggested to book profits on every rise and avoid taking new long positions till we get a bullish confirmation. Nifty has support in 17,600 and 17,800 range and resistance in 19,050 and 18,050 range.
Titan, L&T and ITC were leading gainers on the Sensex, while IndusInd Bank, Kotak Bank and Dr Reddy's were top drags at 9:13 am.
Markets are in the green at pre-open, indicating gap up opening. Sensex was up by 75 points while Nifty was up 87 points.
Six stocks to buy or sell today, 8 November (Read here)
Bitcoin rose to a two-and-a-half-week peak on Monday and ether climbed to a fresh record as cryptocurrencies ride higher on a wave of momentum, flows, favourable news and inflation fears. Bitcoin was last up about 3% at $65,121 and ether, which underpins the ethereum network, sat at a record top of $4,711. Ether is up 57% since the start of October and bitcoin about 50% as investors have cheered last month's launch of a US futures-based bitcoin exchange-traded fund and sought exposure to an asset class sometimes regarded as an inflation hedge. Falling real yields, as traders brace for inflation, adds to the attractiveness of assets such as gold and cryptocurrencies which do not pay a coupon, said Kyle Rodda, analyst at broker IG Markets, adding that the mood in the sector has also been good. Reuters
Adani Group has made a one-time payment of ₹2,440 crore to the Airports Authority of India (AAI) for the six airports that the state-owned airport operator has transferred to the Ahmedabad-based company after it won bids for six airports, the Economic Times has reported citing sources.
In what is expected to be India's biggest public issue, Paytm's ₹18,300 crore initial public offering (IPO) by parent One97 Communications will open for subscription today. The price band of the three-day share sale, which concludes on November 10, has been fixed at ₹2,080-2,150 per share. Paytm has raised ₹8,235 crore from anchor investors ahead of its share sale. (Read here)
The congressional passage of a long-delayed US $1 trillion infrastructure bill cheered investors, though a broader social safety net plan remains elusive. (Read here)
Nykaa IPO's finalization of basis of share allotment is expected to take place on Monday, 8 November 2021. The initial public offering (IPO) of Nykaa's parent FSN E-Commerce Ventures Ltd, which runs online marketplace for beauty and wellness products, was subscribed more than 82 times at the end of the final day of bidding which was last week. The bidders can check the share allotment status in the registrar's website Link Intime India Pvt. Ltd. (Read here)
The same two stocks/securities, that were on F&O ban in the previous few sessions, have been put under the ban for trade on Monday, 8 November 2021 under the futures and options (F&O) segment by the National Stock Exchange (NSE). These securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE. Public lender Punjab National Bank (PNB) and Escorts continue to be under the F&O ban list for today. The derivative contracts in the mentioned securities have crossed 95% of the market-wide position limit and are therefore have been currently put in the ban period by the stock exchange, said NSE. (Read here)
Wind energy solutions provider Inox Wind has bagged an order for a 150 MW wind power project from NTPC Renewable Energy Limited, a wholly owned subsidiary of NTPC Ltd, to be commissioned in Gujarat. This among many more in the future will help NTPC achieve its target of having over 60 GW Renewable Energy capacity constituting nearly 50% of its overall power generation capacity by 2032. The project will be executed on a turnkey basis at Dayapar site, Kutch District in Gujarat and is scheduled to be commissioned by April 2023.
Oil advanced above $82 a barrel as traders weighed the odds of a release of crude from the US Strategic Petroleum Reserve after OPEC+ resisted a plea from President Joe Biden to boost supplies more quickly. West Texas Intermediate rose 1.1% after surging 3.1% on Friday, and Brent also tracked higher. The administration will consider data coming out Tuesday as it assesses measures to stem gasoline prices, Energy Secretary Jennifer Granholm said on Sunday. Vitol Group, the biggest independent oil trader, told Bloomberg on Sunday that OPEC+ is unlikely to change its stance. Oil’s rally to a seven-year high has alarmed Biden, who led calls from consumers last week for the Organization of Petroleum Exporting Countries and its allies to step up the pace they are reactivating the supply shuttered at the start of the pandemic. Despite his plea, the alliance chose to stick with a planned, modest hike of 400,000 barrels a day. That’s raised the possibility of an SPR release, which could be made in coordination with other states. (Read here)
Future Retail, IndusInd Bank, and DLF are among the stocks to watch. (Read here)
Stocks in Asia were steady Monday as investors keep watch on how price pressures impact monetary policy and the pace of economic recovery. Treasury yields pared a slide. Equities in Japan were little changed and they fell in Hong Kong and South Korea. US futures dipped after all major US equity benchmarks climbed to records Friday, with the S&P 500 posting its fifth consecutive weekly rally. That was after a larger-than-forecast and broad-based gain in US payrolls that also showed a jump in average hourly earnings. Australian bonds rallied after the US 10-year Treasury yield tumbled below 1.5%. Markets will closely watch a read on US consumer prices this week. The dollar rose and the yen slipped. Stocks in China fluctuated as the Communist Party meets for the first time in more than a year this week. The gathering is expected to lay the ground for extending the term of President Xi Jinping, who has rattled markets with his “common prosperity" campaign to redistribute the nation’s wealth. The inflation debate continues to shadow the markets that had taken some comfort from a strong earnings season despite higher inflation and supply chain snarls. Federal Reserve Bank of Kansas City President Esther George said the risk of a prolonged period of elevated inflation has increased and the argument for patience has diminished.
Stocks
S&P 500 futures slipped 0.2% as of 10:45 a.m. in Tokyo. The S&P 500 rose 0.4%
Nasdaq 100 futures fell 0.3%. The Nasdaq 100 rose 0.1%
Topix index was flat
Australia’s S&P/ASX 200 Index fell 0.3%
Kospi index fell 1.1%
Hang Seng Index fell 0.6%
Shanghai Composite Index
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