Market closing: Indian benchmark indices fell on Wednesday amid mixed cues from global peers and inflationary concerns. Sensex touched a low of 59,944.77 and high of 60,425.03, while Nifty moved in a range of 17,879.25-18,022.65
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Most Asian stocks fell Wednesday as the dollar held around a one-year high, bolstered by robust U.S. economic data that highlighted the case for tighter monetary policy and pushed up Treasury yields.
17 Nov 2021, 03:48:21 PM IST
Sensex ends near 60K, Nifty below 17,900; pharma, oil & gas top drags
India's benchmark indices ended lower for the second straight day in choppy trade on Wednesday, dragged lower by heavyweights Reliance Industries, down nearly 2%, and HDFC twins. Axis Bank also fell nearly 2%.
The Sensex fell 314.04 points, or 0.52%, to end the day at 60,008.33, while Nifty was down 100.50 points, or 0.56%, at 17,898.70.
On the Nifty, UPL, Reliance Industries, Axis Bank, Britannia Industries and IOC were the among the worst hit, while SBI Life Insurance, Asian Paints, Maruti Suzuki, Tata Motors and Power Grid gained.
Realty, oil & gas, pharma indices fell a percent each, while metal, capital goods and bank stocks also saw selling pressure. The BSE MidCap index was down 0.2%, while the SmallCap index ended flat.
European stocks extend gains for sixth straight day
European stocks rose for a sixth consecutive session to hover near record highs on Wednesday, as some positive earnings reports helped overshadow worries that soaring natural gas prices were feeding into inflationary pressures.
The pan-European STOXX 600 inched up 0.1% by 0823 GMT after better-than-expected U.S. retail data lifted Wall Street equities on Tuesday.
German medical tech firm Siemens Healthineers gained 4.4% after raising synergy targets from its Varian acquisition earlier this year.
17 Nov 2021, 02:57:05 PM IST
LIC IPO expected to hit market by Q4: Dipam Secy
17 Nov 2021, 02:33:08 PM IST
LTTS to help NVIDIA and Mavenir accelerate adoption of AI-on-5G platform
L&T Technology Services Ltd said it has been selected as an engineering partner by Mavenir and NVIDIA, to accelerate adoption of the industry’s first converged AI-on-5G.
LTTS will support Mavenir with customization, integration and deployment of AI applications for deployment on NVIDIA’s AI-on-5G platform
Oil fell on Wednesday after an industry report showed U.S. gasoline stocks dropped more than expected last week, potentially heightening pressure on the Biden administration to release oil from emergency reserves to cap soaring fuel prices.
U.S. West Texas Intermediate (WTI) crude futures fell 57 cents, or 0.7%, to $80.19 a barrel, extending a 12 cent loss from Tuesday.
Brent crude futures dropped 50 cents, or 0.6%, to $81.93, erasing Tuesday's 38 cent gain.
It is no news that Asian Paints Ltd has been battling severe cost inflation and its strategy of taking slow price hikes became a sour point for its investors. But there is some relief for investors on this front. According to analysts at Edelweiss Securities Ltd, the market leader in decorative paints is taking another round of price hike effective 5 December.
"Our sense is that the latest hike is 4–5%. This would bring the total hike to around 19% year-on-year (y-o-y)," said the Edelweiss report dated 16 November.
Investors would reckon that Asian Paints saw robust volumes growth of 34% in the September quarter. However, gross margins contracted a sharp 970 basis points y-o-y as prices of key input material titanium dioxide and other crude-based monomers remained high . One basis point is one hundredeth of a percentage point.
Asian Paints took a 4% price increase in 2QFY22 on a 6% sequential raw material cost increase during the September quarter. Dealers channel checks by various brokerages showed that the company had raised prices in October by 5-6% across various products.
U.K. inflation surges to highest in a decade on energy costs: Bloomberg
U.K. inflation climbed faster than expected to the highest in a decade, heaping pressure on the Bank of England to raise interest rates and tightening a squeeze on living standards for households.
Consumer prices rose 4.2% from a year ago in October, the fastest pace since November 2011, the Office for National Statistics said Wednesday. The figure was up sharply from 3.1% in September and the reading of 3.9% expected by economists. The Bank of England says price growth could touch 5% early next year.
The pound surged against the dollar after the decision, reaching $1.3473 after the report.
17 Nov 2021, 12:58:27 PM IST
upGrad takes up 1000 seats in IndiQube's Bangalore, Hyderabad centres
17 Nov 2021, 12:33:59 PM IST
Go Fashion IPO sees robust demand
The three-day initial public offering (IPO) of Go Fashion opened today and will conclude on November 22. The IPO price band has been fixed at ₹655-690 a share.
The issue saw strong demand from retail investors, with the portion oversubscribed 1.94 times within minutes of opening.
The IPO comprises a fresh issue of equity shares aggregating up to ₹125 crore and an offer for sale of up to 12,878,389 equity shares by promoter and existing shareholders. At the upper end of the price band, the IPO is expected to fetch ₹1,013.6 crore.
17 Nov 2021, 12:22:49 PM IST
Rakesh Jhunjhunwala-backed Akasa Air orders 72 Boeing 737 Max planes
17 Nov 2021, 12:16:31 PM IST
Vedanta-led Cairn Oil & Gas partners with Baker Hughes to boost recoverable reserves
17 Nov 2021, 12:03:59 PM IST
Alembic Pharmaceuticals JV Aleor Dermaceuticals receives US FDA final approval for Mupirocin Cream USP: BSE filing
Ashoka Buildcon’s strong order book lends to strong prospects despite modest Q2
Ashoka Buildcon Ltd saw a subdued Q2 performance, hit by slower execution during the monsoons. Toll collections, however, improved 17% sequentially, with rise in traffic following the easing of mobility restrictions.
With the Ebitda down 9% year-on-year and 1.5% sequentially, net profit fell 8.7% year-on-year and 5.7% sequentially.
While the quarter saw soft performance due to delays witnessed in commencing various projects, the management has revised revenue growth guidance for FY22 to 20% from 25% earlier.
The company, however, has a very strong order book. Order inflows so far in FY22 stand at about ₹3,354 crore. EPC (Engineering Procurement and Construction) order backlog stands at ₹11880 crore, which is 3 times FY21 revenues.
Analysts at PhillipCapital India Research said, “We continue to like the stock and view Ashoka a perfect proxy to play the road segment, with proven execution capabilities and healthy portfolio mix of EPC-BOT-HAM projects." Its strategy to diversify into the buildings segment also augurs well for the company, as it grows.
PhonePe processed 2 billion transactions in October
Flipkart-owned PhonePe on Wednesday said it processed over 2 billion transactions on its platform in October. It also has the pole position in recharge and bill payment transactions via BBPS. PhonePe hit the 1 billion monthly transaction mark in February this year, and has now hit the 2 billion milestone in just 8 months, cementing its position as India’s leading fintech platform.
PhonePe has over 335 million registered users. Using PhonePe, users can send and receive money, recharge mobile, DTH, pay at stores, make utility payments and also buy and invest in gold and silver. PhonePe forayed into financial services in 2017 with the launch of gold providing users with a safe and convenient option to buy 24-karat gold, and recently also launched silver on its platform.
It has since introduced several Mutual Funds and Insurance products like tax-saving funds, liquid funds, international travel insurance, life insurance, and insurance for the COVID-19 pandemic among others.
PhonePe is also accepted at 22+ million merchant outlets across India.
17 Nov 2021, 11:22:34 AM IST
Most PSU banks rise, PNB bucks the trend
17 Nov 2021, 11:07:54 AM IST
Nifty technicals: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
Since last 10 odd sessions, Nifty has done nothing. In fact if we take a close look at the daily time frame chart, we can see prices oscillating precisely within the boundaries of a small ‘Upward Sloping channel’. Due to last two days’ of small correction, we are trading at the mid-point of this trading range; but some of the heavyweights are now indicating a possible weakness from hereon.
For the coming session, 17900 – 17800 are the levels to watch out for. This being the lower boundary of the ‘Channel’ pattern, a sustainable breach of this lower range would lead to further correction in coming days.
Meanwhile, 18130 followed by 18200 are to be considered as stiff hurdles. We continue to remain cautious on the market and advise using intraday rebounds to lighten up longs. Yesterday’s correction was mainly led by RELIANCE and banking space, hence all eyes on these going ahead as they are going to dictate the near term direction.
17 Nov 2021, 11:04:03 AM IST
RIL falls 1%, worst hit on Sensex
17 Nov 2021, 10:57:15 AM IST
IndiGo weighs charging fliers for checked bags as market heats up: report
InterGlobe Aviation-operated IndiGo, one of Asia’s biggest budget carriers, is mulling charging passengers for checked-in luggage as the airline prepares for a potentially fierce price war in India’s cutthroat air travel market, which is showing signs of recovery following the worst of Covid.
Asian high-yield managers start to close 2021 books due to China property woes: Reuters
Asia's high-yield bond managers are largely staying away from new debt deals as turmoil in China's property sector has roiled the region's bond markets, even as they very cautiously buy into companies they think have been oversold in secondary markets.
The region's high-yield - or junk - bond market has been in turmoil for the past two months as China Evergrande Group struggles to survive, and investors try to assess which other cash-strapped Chinese developers will be unable to make scheduled payments.
Prices have tumbled and returns fallen, making it harder for companies to issue new debt. The returns of 43 high-yield funds measured by Morningstar are down 15.8% so far in 2021, compared to a 1.14% gain over the same period last year.
17 Nov 2021, 10:39:19 AM IST
Inflation and US Fed to be top market drivers in 2022: BofA survey
Global fund managers see inflation and US Federal Reserve's decisions as key drivers of asset markets in 2022, showed the latest survey by Bank of America Merill Lynch.
Amid worse-than-expected October inflation data in US, a majority of FMS investors acknowledge that inflation is a risk but only 35% think it is permanent while 61% think it is transitory, said the survey report.
It should be noted that three out of four respondents took this survey before the US CPI data was released this month. A net 14% of investors now expect global inflation will be at the lowest level since the onslaught of Covid-19 in March 2020. In other words, 51% of investors expect lower inflation while 37% expect higher inflation, said the report.
17 Nov 2021, 10:20:39 AM IST
Nifty broader market indices at this hour
17 Nov 2021, 10:17:41 AM IST
Rupee falls 14 paise to 74.51 against US dollar
The local currency had closed at 74.37 against the US greenback on Tuesday.
17 Nov 2021, 10:15:24 AM IST
Nifty view: ICICI Securities
Going ahead, we expect the index to prolong the ongoing consolidation in the broader range of 18200-17700 amid stock specific action as sectoral churn continues. Over past 11 sessions index has retraced 61.8% of 9 sessions decline (18604-17613) seen during October.
The lack of faster retracement on either side indicates extended consolidation which would offer incremental buying opportunity as index approaches price/time wise maturity of correction. Price-wise Nifty has maintained the rhythm of not correcting for more than 7-9% while sustaining above 50 days EMA and time-wise intermediate corrections have got arrested within four weeks, observed during past 18 months.
As index has already corrected 5.5% over past three weeks, we expect index to hold 17500 and eventually challenge upper band of consolidation at 18200. Hence, dips should be capitalised on to accumulate quality stocks
17 Nov 2021, 10:02:08 AM IST
BUY IPCA Labs: YES Securities
Temporary margin hiccup; revenue drivers intact
IPCA domestic business continues to exhibit robust strength though exports formulations were largely affected with all segments falling sequentially after a strong Q1. APIs business was disrupted but is expected to be resolved by Q4 FY22. The domestic business is trending better than guidance and reckon it would cushion some of the input cost pressures and export revenue led weakness in H2. Overall, the cost pressure led weakness in margin is relatively quick to resolve (through price hikes if it lasts longer or, as is expected, RM costs cool off) rather than any sluggishness emanating from slower revenue growth. We firmly see IPCA’s lower margin outlook of the first variety; hence, BUY stays based on 28x FY23 EPS.
17 Nov 2021, 09:53:11 AM IST
Indian shares slide as finance, pharma sectors drag
Shares fell on Wednesday, dragged by banking and pharma stocks, with Reliance Industries and Housing Development Finance Corporation Ltd weighing on the Nifty 50 index. The blue-chip NSE Nifty 50 index slipped 0.24% to 17,956.10 and the benchmark S&P BSE Sensex fell 0.26% to 60,165.7.
The Nifty Bank Index dropped 0.47%. Bandhan Bank , RBL Bank, and IDFC First Bank — down between 0.9% and 1.4% — led the losses on the sub-index.
Pharma stocks, such as IPCA Laboratories, Aurobindo Pharma, and Lupin Ltd shed 1.78%, 1.51% and 1.45%, respectively. The Nifty Pharma Index was down 0.53%.
17 Nov 2021, 09:46:17 AM IST
YES Securities recommends BUY on Repco Home
Delivered an operational beat; management change could be a trigger
The Board is not renewing/extending the term of current MD and CEO Mr. Yashpal Gupta and would be looking out for an external/professional successor. The planned management change likely manifests promotor Repco Bank’s and the Board’s augmented emphasis on balance sheet growth, in the light of structurally growing demand in the affordable housing segment. The appointment of an external CEO would be positive for the stock as it would revive long-run growth prospects. Even on modest growth expectations, Repco trades at a low valuation of 0.7x FY24 P/ABV. Risk-reward is quite attractive considering an average 2.4% RoA and 13% RoE delivery over FY21-24. Retain BUY with 12m PT of ₹420.
SpiceJet, Boeing settle 737 MAX-related claims: BSE filing
Budget airline SpiceJet said on Wednesday that is has reached an agreement with Boeing, wherein the U.S. aircraft manufacturer has agreed to settle the outstanding claims related to the grounding of its 737 MAX aircraft.
The government wants state-owned oil and gas explorer ONGC NSE -0.41 % to carve out non-producing high-potential areas of the prolific Mumbai High and Bassein fields for privatisation, not privatise entire fields, as per a report in the Economic Times.
ONGC produces more than 60% of India’s oil and gas output and has resisted several attempts at privatizing its fields over the past few years.
In the latest move, the oil ministry wrote to ONGC last month, asking it to give away 60% participating interest and operatorship in Mumbai High and Bassein fields to international players.
Japan's exports growth hits 8-month low as auto trade slides: Reuters
Japan's exports snapped seven months of double-digit growth in October due to slowing car shipments, as global supply constraints hit the country's major manufacturers.
The slowing growth shows Japan's vulnerability to supply chain bottlenecks that have been particularly disruptive for the car industry and have clouded the outlook for trade.
Exports rose 9.4% year-on-year in October, Ministry of Finance data showed on Wednesday, slightly below a median market forecast for a 9.9% increase. It followed 13.0% growth in the prior month and was the weakest expansion since a decline in February. Car shipments fell 36.7%.
17 Nov 2021, 08:38:11 AM IST
Petrol, diesel prices unchanged for 13th straight day
Oil marketing companies left unchanged the prices of petrol and diesel on 17 November, the 13th day straight.
Petrol in the national capital is retailing for ₹103.97 per litre, while diesel is sold for ₹86.67 per litre.
17 Nov 2021, 08:29:26 AM IST
Sebi revises norms for draft schemes
Markets regulator Securities and Exchange Board of India (Sebi) on Tuesday revised guidelines for processing of draft schemes filed with stock exchanges.
“These amendments are aimed at ensuring that the recognized stock exchanges refer draft schemes to Sebi only upon being fully convinced that the listed entity is in compliance with Sebi Act, Rules, Regulations and circulars," Sebi said in a circular. The listed entity is required to submit certain documents to the exchange, which includes a valuation report.
As per the revised guidelines, this report needs to be accompanied by an undertaking from the listed entity, stating that no material event impacting the valuation has occurred during the intervening period of filing the scheme documents with exchange and period under consideration for valuation. Besides, the entities now also need to submit a declaration on any past defaults of listed debt obligations of the entities forming part of the scheme. A no-objection certificate from the lending scheduled commercial banks/financial institutions is also required to be submitted.
BHEL, Indiabulls Housing Finance, IRCTC, NALCO, Punjab National Bank, SAIL and Sun TV Network are under the F&O ban for 17 November.
In the primary market, Go Fashion’s IPO will open for sale today. In the ₹1,013 crore public issue, the company is selling shares in the fixed price band of ₹655-690 per share. The issue consists of a fresh issue of equity shares and an OFS by existing shareholders.
17 Nov 2021, 08:03:02 AM IST
SGX Nifty indicates muted start for Indian indices
SGX Nifty futures traded at 17,938.50 in early deals, down 39.50 points or 0.22%, indicating a muted start for Indian benchmarks in Wednesday's trade.
17 Nov 2021, 07:58:18 AM IST
Banks, IPOs attract MF money in October
Inflows into equity mutual fund (MF) schemes declined in October, but sectors such as automobiles and banks remained attractive for fund managers. Newly listed stocks such as Nykaa and Fino Payments also received mutual fund money during the month.
In October, the exposure of MFs to private banks hit a five-month high of 17.7%, rising 90 basis points (bps) from the previous month and 10 bps from the same period last year, according to data sourced from the Association of Mutual Funds in India (Amfi) and NAV India analysed by Motilal Oswal Financial Services Ltd. Private banks’ sector exposure was at a 29-month low of 16.8% in September. (Read here)
17 Nov 2021, 07:56:53 AM IST
Fitch retains BBB- grade, negative outlook for India’s sovereign rating
Fitch Ratings on Tuesday reaffirmed its lowest investment grade (BBB-) sovereign rating for India with negative outlook, holding that the country’s rating balances a still-strong medium-term growth outlook and external resilience from solid foreign-reserve buffers, against high public debt, a weak financial sector and some lagging structural issues.
The rating action by Fitch maintaining the negative outlook will disappoint the government, since only last month, Moody’s Investors Service had upgraded India’s sovereign credit rating outlook to stable from negative, while keeping its credit rating unchanged at Baa3, citing receding risks posed by the financial sector to the overall economy. S&P Global Ratings in July also reiterated its lowest investment grade rating with stable outlook for India.
17 Nov 2021, 07:56:15 AM IST
Oil falls as U.S. gasoline stock draw raises prospect of SPR release
Oil prices dropped on Wednesday after U.S. gasoline stocks fell more than expected last week, which could heighten pressure on the Biden administration to release oil from emergency reserves to cap soaring gasoline prices.
U.S. West Texas Intermediate (WTI) crude futures fell 76 cents, or 0.9%, to $80.00 a barrel, extending a 12 cent loss from Tuesday.
Brent crude futures fell 72 cents, or 0.9%, to $82.71, erasing a 38 cent gain from Tuesday.
17 Nov 2021, 07:54:13 AM IST
Asian stocks lower; US economic data spurs calls for tighter monetary policy
Most Asian stocks dipped Wednesday after robust U.S. economic data lifted Wall Street shares, Treasury yields and the dollar and spurred more calls for tighter monetary policy.
Equities were lower in Japan and Hong Kong, including a drop in Chinese technology stocks, while U.S. futures were little changed. The S&P 500 extended a rally overnight, buoyed by expanding retail sales and generally solid reports from Walmart Inc. and Home Depot Inc.
S&P 500 futures were little changed and Nasdaq 100 futures were also little changed.
Japan’s Topix index fell 0.6%, Australia’s S&P/ASX 200 Index fell 0.6%, South Korea’s Kospi index lost 0.9%, Hong Kong’s Hang Seng Index slid 0.4% and China’s Shanghai Composite Index dipped 0.1%.
Overnight, stocks closed higher on Wall Street as investors reviewed solid earnings reports from big retailers and a surprisingly strong report on consumer spending.
The S&P 500 index rose 18.10 points, or 0.4%, to 4,700.90. The Dow Jones Industrial Average rose 54.77 points, or 0.2%, to 36,142.22. The Nasdaq rose 120.01 points, or 0.8%, to 15,973.86.
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