Market closing: Indian indices fell on Thursday amid weakness in global peers. Sensex touched a low of 59,376.50 and high of 60,177.52, while Nifty has moved in 17,688.50-17,945.60 range. Auto, metal, pharma, IT stocks were hit
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Global stock markets stalled on Thursday and safe havens such as government bonds, gold and the yen were supported in Asia, as a hint of uneasiness crept in over the outlook for interest rates and growth, particularly outside of the US.
18 Nov 2021, 03:56:03 PM IST
Sensex gives up 60K, Nifty ends sub-17,800; Paytm tanks on listing
Domestic stock markets closed lower for the third consecutive day amid broad-based selling. Shares of One97 Communications, parent of Paytm, tanked over 20% after making a tepid debut on the exchanges.
The Sensex fell 433.05 points, or 0.72%, to end the day at 59,575.28, while Nifty was down 133.90 points, or 0.75%, at 17,764.80.
On the Nifty, Tata Motors, Tech Mahindra, M&M, HCL Technologies and L&T were among the worst hit, while SBI, Power Grid Corp, HDFC Bank, IOC and Divis Labs rose.
All sectorial indices, barring Nifty PSU Bank index, ended in the red. Auto and metal indices fell over 2% each. Broader markets were also weak, with BSE MidCap and Smallcap falling 1.5% each.
18 Nov 2021, 03:17:27 PM IST
Icra raises Q2 GDP growth estimate to 7.9%: PTI
18 Nov 2021, 03:14:05 PM IST
Paytm hits intraday low
18 Nov 2021, 03:05:45 PM IST
Top losers on BSE at this hour
18 Nov 2021, 02:58:19 PM IST
MTNL surges; government announces ₹1.3 trillion revival plan
European equities steadied at the open on Thursday, despite losses elsewhere on concerns over soaring inflation.
London's benchmark FTSE 100 index dipped 0.3% to 7,269.87 points, compared with Wednesday's close.
In the eurozone, Frankfurt's DAX index rose 0.2% to 16,274.78 points and the Paris CAC 40 was fractionally higher at 7,158.08.
18 Nov 2021, 01:52:37 PM IST
Embattled China developers rush to raise $2 billion in a day: Bloomberg
The scramble for cash by Chinese property companies is intensifying as the industry looks for ways to alleviate a historic liquidity squeeze.
Firms announced plans to raise $2.4 billion in just the past 24 hours, taking the total over the last week to at least $4.2 billion, according to Bloomberg calculations. The latest fundraising includes China Evergrande Group’s stake divestment in HengTen Networks Group Ltd. and Country Garden Services Holdings Co.’s second share placement in six months, as well as onshore bond sales by two state-run developers.
Property firms are stepping up efforts to raise cash as they seek to repay debt at a time when strict rules on leverage, elevated borrowing costs and a slowdown in homes sales are curbing traditional sources of funds. Chinese policy makers have made it clear they expect developers to meet their obligations, even as officials maintain curbs on the sector.
“Many developers are doing everything they can to avert default," said Abhishek Rawat, portfolio manager at Hong Kong Asset Management Ltd., who turned more positive on the sector last month. “That’s a good sign as it implies they care about their reputation. It shows their willingness to pay."
18 Nov 2021, 01:48:41 PM IST
HDFC Mutual Fund launches HDFC Multi Cap Fund
18 Nov 2021, 01:42:26 PM IST
Nifty broad market indices
18 Nov 2021, 01:13:42 PM IST
PM Modi says ₹2 lakh cr of stressed assets likely to be resolved through National Asset Reconstruction Co: PTI
Banks have adequate liquidity, no overhang of NPAs: PM Narendra Modi on banking sector reforms by his government.
More than ₹5 lakh cr recovery made by banks from stressed loans: PM Modi on steps taken to recover unpaid loans.
18 Nov 2021, 01:07:04 PM IST
Oil at 6-week low as China readies crude oil reserve release
Oil prices slid to near six-week lows on Thursday as China said it was moving to release reserves following a Reuters report that the United States was asking big crude consumers to consider a coordinated release of stocks to lower prices.
The bid by the U.S. administration to shock markets, asking China to join coordinated action for the first time, comes as inflationary pressures, partly driven by surging energy prices, start to produce a political backlash, as the world fitfully recovers from the worst health crisis in a century.
Brent crude was down 41 cents, or 0.5%, to $79.87 a barrel, after earlier dropping to $79.60, the lowest since Oct. 7.
U.S. crude was down 70 cents, or 0.9%, at $77.66 a barrel, having fallen earlier to $77.40, also the lowest since early last month.
18 Nov 2021, 01:05:41 PM IST
RBL Bank has been authorised by RBI to collect direct taxes on behalf CBDT: BSE filing
Japan's Kubota to raise stake in Escorts at ₹2,000/share via pref issuance, open offer: BSE filing
Tractor and farm equipment maker Escorts Ltd on Thursday said Japan’s Kubota will invest ₹1,872.74 crore in the company to increase its stake and will become a joint promoter of the company along with the existing promoters, the Nanda family.
The fresh investment will take place through a preferential allotment, post which Kubota’s stake in the company will increase from 9.09% currently to 14.99%, the company said.
Shares will be allotted to Kubota, subject to shareholder and regulatory approvals, at a price of ₹2,000 apiece. This price is at a premium of 29.5% over the floor price (as per SebiI regulations) of Rs1,544.16 per share, the company said.
In line with Sebi’s takeover regulations, Kubota will also launch an open offer to acquire upto 26% stake in the company from public shareholders at a similar price of Rs2,000 per share. In case of complete subscription in the open offer, Kubota will end up with a 44.8% stake in the company (including cancellation of certain shares held by Escorts Benefits and Welfare Trust).
Two shutters of Mullaperiyar dam and one of Cheruthoni dam in Kerala's Idukki opened in view of heavy rainfall in the district: PTI
18 Nov 2021, 11:43:11 AM IST
CBDT issued refund worth ₹1,19,093 crore to more than 1.02 crore taxpayers during 1 April-15 November: IT department
Income tax refunds of ₹38,034 crore were issued in 1,00,42,619 cases and corporate tax refunds worth ₹81,059 crore were issued in 1,80,407 cases.
18 Nov 2021, 11:32:40 AM IST
Lodha Group raises ₹4,000 crore equity through QIP
Macrotech Developers Ltd, earlier known as Lodha, said its ₹4,000 crore qualified institutional placement (QIP) share sale, launched earlier this week, witnessed traction from diversified investors including sovereign and pension funds, mutual funds, insurers and others.
More than 90% of the book was allocated to long-term global investors.
The institutional placement saw new investors such as GIC, Oppenheimer, Universities Superannuation Scheme (USS), Amundi, Tata Mutual Fund. Existing shareholders of the company such as Capital Group, Ivanhoe Cambridge, Wellington, Nomura, Manulife,
Nippon, Max Life also enhanced their investment through the QIP.
The QIP share sale was oversubscribed more than three times within five hours of the issue opening.
It will use ₹3,000 crore for new project agreements through a joint development route and the remaining ₹1,000 crore to pare its debt.
The company plans to nearly double its pre-sales to ₹14,000 crore by 2023-24 and further grow to ₹20,000 crore by 2025-26.
18 Nov 2021, 11:15:01 AM IST
PM Modi appeals to democracies to come together to regulate cryptos
Today Sapphire Foods India listed on the stock exchanges today and trading 2% above its upper price band. In terms of valuations, the stock is trading at 7.5x (FY21 EV/Sales) which is low compared to its peers Devyani International (FY21 EV/Sales -18.1x).
Sapphire Foods India has a better revenue per store compared to Devyani International. On the EBITDA front, the company is continuously showing improvement.
Considering the company's business model and trading at discount compared to its peers, we recommend a BUY rating on the stock for the long term.
Nifty technicals: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
The SGX Nifty was indicating a sluggish start yesterday morning and in line with this, our markets started the day on a soft note. In the first couple of hours, market managed to recover from lower levels to reclaim the 18000 mark. This was then followed by some consolidation but once again last hour nervousness poured complete water as we witnessed a sharp decline to sneak below 17900 at the close.
Within the recent consolidation, the market has started to grind lower gradually since last three trading sessions. Although the damage is negligible, we can see some interesting price development on the chart. In our previous commentary, we had mentioned about the small ‘Channel’ pattern on the hourly chart. With yesterday’s corrective move, Nifty has reached the lower boundary and the way overall things are positioned, Nifty seems to be on the verge of a breakdown. In fact, below 17700 we could see a confirmation of ‘Head and shoulder’ pattern formed on the daily time frame chart.
Considering all these observations, we can see market trading at the make or break levels now. Any sustainable breakdown from the mentioned supports will lead to extended correction in the near term; whereas on the flipside, if Nifty has to regain any strength it needs to first reclaim the 18000 mark on a closing basis. The coming session would be crucial for our market and hence one needs to a keep a close tab on all the above mentioned scenarios.
18 Nov 2021, 10:45:48 AM IST
Nifty Auto falls over 2%
18 Nov 2021, 10:35:53 AM IST
Market technical outlook: ICICI Securities
The index witnessed a roller coaster ride as the Nifty saw more than 400 points move during the session, indicating elevated volatility. As a result, daily price action formed a bear candle with sizable upper shadow, highlighting extended profit booking after retreating from upper band of consolidation at 18200. In relative terms, small cap index continued to outperform as stock specific action continued
Over the past 12 sessions, the index has been consolidating in a range of 18200-17700. We believe ongoing consolidation amid stock specific action would make the market healthy and help weekly Stochastic oscillator to cool off the overbought conditions (currently at 36).
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 the 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 the index has already corrected 5.5% over past three weeks, we expect it to hold 17500 and eventually challenge upper band of consolidation at 18200. Hence, dips should be capitalised on to accumulate quality stocks across large and midcaps segment.
18 Nov 2021, 10:20:34 AM IST
Nifty slips below 17,800
18 Nov 2021, 10:07:25 AM IST
KFC operator Sapphire Foods lists at a premium
KFC and Pizza Hut operator Sapphire Foods saw a strong listing on the stock exchanges on Thursday.
The ₹2,073-crore IPO was subscribed 6.62 times. The IPO price band was fixed at ₹1,120-1,180 per share.
18 Nov 2021, 10:02:29 AM IST
Paytm makes tepid debut on stock markets; lists at discount to issue price
Shares of One 97 Communication Ltd, parent of Paytm, made a disappointing stock markets debut on Thursday. On NSE, the stock listed at ₹1,950, a 9.3% discount to the issue price of ₹2,150 a piece.
The ₹18,300-crore public issue of One97 Communications, the largest ever in India, was subscribed 1.89 times in the price band of ₹2080- ₹2150.
Ahead of the issue, Jyoti Roy, equity strategist at Angel One Ltd, had said that at the upper end of the price band, Paytm is valued at 49.7 times FY21 revenues. “While valuations may appear expensive, Paytm is well-positioned to benefit from the exponential growth in mobile payments between FY21 and FY26 and hence valuations are justified," she added.
Paytm is India’s largest digital ecosystem for consumers and merchants, with a gross merchandise value (GMV) of ₹4 trillion in FY21. GMV, or the total value of merchandise sold over a period, measures the use of the site to sell merchandise owned by others.
18 Nov 2021, 09:54:00 AM IST
Bank Nifty strategy for current week expiry: Axis Securities
Bank Nifty has seen a decrease in Open Interest of -9.51% with a decrease in the price of -1.41% indicating Long Unwinding.
Nifty has seen a decrease in Open Interest of -7.89% with a very marginal increase in the price of 0.07% indicating Short Covering.
Option data indicates a probable trading range of Bank Nifty for the day between 38,500 to 37,500 & that for NIfty at 17,700 to 18,100.
BANK NIFTY Strategy: CALL Spread
View: Moderately Bullish.
Rationale: Traders could initiate this spread strategy to make modest returns with limited risk and reward. The spread suggested consists of buying one lot of 38,100 strike CALL Option and simultaneously selling one lot of 38,600 strike CALL Option.
18 Nov 2021, 09:50:57 AM IST
Market view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets are in a definite range which is between 17600 and 18100. Even though this might be a wide range, the movements are volatile and traders should abstain from trading until we do not get past either levels. A breakout on the upside or a breakdown on the downside will result in a 400-500 point move.
18 Nov 2021, 09:47:30 AM IST
Top gainers/losers on Sensex at this hour
18 Nov 2021, 09:43:29 AM IST
Sensex slips below 60,000
18 Nov 2021, 09:35:27 AM IST
Vedanta falls; company to set up panel to recast firm, unlock value
Billionaire Anil Agarwal’s Vedanta Ltd said it is considering separating its aluminium, steel, and oil and gas businesses, and publicly listing them, as it seeks to unlock value and simplify the company’s structure.
Vedanta has appointed a committee of directors to evaluate the options, the company said in an exchange filing on Wednesday. “Considering the scale, nature, and potential opportunities for various business verticals of the company, it should undertake a comprehensive review of the corporate structure and evaluate a full range of options and alternatives (including demergers, spin-offs, strategic partnerships, etc.,) for unlocking value and simplification of corporate structure," the company said.
The restructuring exercise comes after Agarwal attempted to take Vedanta private in October last year. The plan was unsuccessful as shareholders did not tender the requisite number of stocks to delist. The delisting would have allowed the billionaire to use cash and dividends of Vedanta to cut debt of the holding company.
Vedanta is a unit of London-based Vedanta Resources Ltd, which has operations across oil and gas, metals and power in India, South Africa and Namibia. Vedanta Resources, in turn, is controlled by Volcan Investments, an investment arm of Agarwal. The group has recently forayed into steel production in India and is among the bidders for state-run fuel retailer Bharat Petroleum Corp. Ltd.
Brokerage firm Macquarie Research initiated an underperform rating on Paytm parent One97 Communications, share of which list on stock exchanges today, saying its business model lacks focus and direction.
The brokerage firm has set a target price of ₹1,200 a share, down 40% from the issue price of ₹2,150.
18 Nov 2021, 09:06:24 AM IST
Markets in pre-open
18 Nov 2021, 09:05:34 AM IST
Nifty in pre-open
18 Nov 2021, 08:58:49 AM IST
KFC operator Sapphire Foods to make market debut today
18 Nov 2021, 08:36:56 AM IST
Panel to meet today to take up applications seeking nod for Molnupiravir: report
The subject expert committee (SEC) of India's drug regulator will meet on Thursday to examine applications of over a dozen drugmakers seeking accelerated approval of MSD's Covid-19 antiviral medication molnupiravir, the Economic Times reported.
People in the know said the SEC is expected to make a decision on recommending approval to molnupiravir by the end of the day.
The firms whose applications that will be taken up are Dr Reddy's Laboratories which has filed for approval in a consortium with five other other companies, and MSD, Hetero Labs, Natco Pharma, Aurobindo Pharm, Optimus Pharma, Strides Pharma, MSN Pharma, and BDR Pharmaceuticals.
The Drug Controller General of India has asked the firms to send a detailed summary of the proposals and PowerPoint presentations to the SEC.
MSD and Ridgeback Biotherapeutics have jointly developed molnupiravir. The antiviral received approval from UK drug regulator MHRA earlier this month.
The advisory committee of the US FDA will be meeting on November 30 to discuss the available data supporting the use of molnupiravir to treat mild-to-moderate coronavirus disease in adults.
One 97 Communications, which owns Paytm, will likely list on exchanges today. KFC operator Sapphire Foods is also expected make its stock exchange debut today.
18 Nov 2021, 08:14:59 AM IST
LIC listing on track by March quarter, says DIPAM’s Pandey
The Union government is planning the initial public offering (IPO) of Life Insurance Corp. of India (LIC) Ltd in the March quarter, a top government official said.
“We are working very hard for the LIC IPO," said Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management (DIPAM). “This is one large financial institution which had remained so far away from the market. In terms of the capital market, it will be a very big event in the last quarter of FY22. That’s what we are working for," Pandey said at the CII Global Economic Policy Summit.
DIPAM has appointed 10 merchant bankers, including Goldman Sachs (India) Securities, Citigroup Global Markets India and Nomura Financial Advisory and Securities India, to manage the IPO of the country’s largest life insurer. Actuarial firm Milliman Advisors LLP India is already assessing the embedded value of LIC ahead of the IPO.
18 Nov 2021, 08:09:39 AM IST
Paytm parent One97 Communications to debut stock exchanges on 18 November
Most marker experts expect Paytm to have a 'tepid' debut today.
If the market opens in positive, then there can be at par listing, however, in the case of negative market sentiment, the issue may open at discount as well, as per them.
The ₹18,300-crore initial public offering (IPO) of One97 Communications, the largest ever in the history of India's capital markets, was subscribed 1.89 times during 8-10 November.
The portion reserved for qualified institutional investors was subscribed 2.79 times and that of non-institutional investors saw 24% subscription, while the retail investors' portion was subscribed 1.66 times.
18 Nov 2021, 08:05:27 AM IST
Nifty view: Nagaraj Shetti, technical research analyst at HDFC Securities
The short term trend of Nifty is down and the bears have started to participate actively in the market. The next important support for bulls at NSE Nifty is around 17,750 and a move below this area is likely to open sharp weakness in the near term. Minor upside bounce in Nifty from the lower support is not ruled out in the short term.
18 Nov 2021, 07:56:24 AM IST
SGX Nifty futures trade flat at 17,870.80
18 Nov 2021, 07:49:04 AM IST
Oil extends declines as U.S. looks to lead SPR shock treatment
U.S. oil was under pressure on Thursday, adding to an overnight plunge on a Reuters report that the United States was asking major oil consumers like China and Japan to consider a coordinated release of oil reserves to lower prices.
The bid by the U.S. administration to shock markets comes as inflationary pressures, partly driven by surging energy prices, starts to produce political backlash, as the world fitfully recovers from the worst health crisis in a century.
U.S. crude was down 62 cents or 0.8% at $77.74 a barrel in Asian deals, having fallen 3% overnight. Brent crude fell 39 cents or 0.5% to $79.89 a barrel after falling 2.6% to the lowest close since early October on Wednesday.
18 Nov 2021, 07:43:45 AM IST
Asian stocks fall on inflation risks
Most Asian stocks fell Thursday and Treasuries were steady as traders weighed risks to the global economic recovery from the prospect of faster monetary-policy tightening to tackle inflation.
Equities slipped in Japan, China and Hong Kong, where technology stocks tumbled. S&P 500 futures fluctuated and Nasdaq 100 contracts rose. U.S. shares pulled back overnight amid home building data signaling high materials prices and labor shortages. Retailer Target Corp. sank on concerns that rising costs will dent margins.
S&P 500 futures were steady, while the Nasdaq 100 was little changed. Japan’s Topix index fell 0.5% and Australia’s S&P/ASX 200 Index rose 0.2%. Hong Kong’s Hang Seng Index fell 1.3% and China’s Shanghai Composite Index lost 0.4%.
Ovrenight on Wall Street, all three major equity indices retreated, shrugging off good earnings from retailers and consolidating recent market records.
The Dow Jones Industrial Average ended down 0.6% at 35,931.05. The blue-chip index down 1.4% from its most recent record on 8 November. The S&P 500 fell 0.3% to 4,688.67 while the Nasdaq also eased 0.3% to 15,921.57.
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