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PremiumAll sectoral indices traded in the red with realty, auto, PSU bank down over 2%. BSE Midcap and Smallcap indices also fell.
India's benchmark equity indices tanked on Monday, dragged lower by index heavyweights Reliance Industries, Bajaj Finance and Kotak Bank.
The Sensex settled at 58,465.89, down 1170.12 points, or 1.86%, at the end of trade on Monday. Nifty was at 17,416.55, down 348.25 points, or 1.96%. Nifty hit a low of 17,280.45 intraday, while Sensex hit a low of 58,011.92 during the session.
Only three stocks on the Sensex ended higher on Monday, with Bharti Airtel rising the most - 3%. Asian Paints and Power Grid were the only other gainers, while Bajaj Financial Services was worst hit. Consumer durables, metals and utilities were the only sectors in the green, although marginally.
On the Nifty, Bajaj Finance, Tata Motors, Reliance and NTPC were the among the worst hit, while Airtel JSW Steel, Asian Paints, Powergrid and Hindalco gained.
Fitch Ratings has affirmed ratings for various public sector banks including Bank of Baroda (BoB), State Bank of India (SBI) and Punjab National Bank (PNB) at 'BBB-' with the outlook being negative.
"The markets broke 17600 and as expected saw a sharp move southward! 17200 is a support for the market and we came close to it and bounced thereafter. The short term trend has definitely been disrupted. If we continue this momentum, we can slide further to 16850. The upside is now capped at 18150-18200 and until that is not crossed, we will be in a negative trend."
-Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Crude oil prices on Monday rose by ₹26 to ₹5,695 per barrel as participants widened their positions on a firm spot demand.
On the Multi Commodity Exchange, crude oil for November delivery traded higher by ₹26, or 0.46 per cent, to ₹5,695 per barrel in 6,707 lots.
Analysts said the raising of bets by participants kept crude oil prices higher in futures trade.
"With the recent correction, markets have entered into consolidation phase where stock specific volatility can be utilized to form the equity portfolios. The stretched valuation segments are witnessing profit booking and money is flowing into value segments where earnings have started to grow after several earnings of stagnation.
Commodity prices in the international markets have started to cool off with HR Steel prices in China having corrected by 18%, Aluminum by 17% and Iron ore prices by 64% due to sluggish real estate demand in China, and thus lower Chinese imports. This should help to recover the margin pressure in some commodity user companies in India like Consumer stocks, etc."
-Amit Gupta, Fund Manager – PMS, ICICI Securities
Refined soya oil prices on Monday rose by ₹5.1 to ₹1,240 per 10 kg in futures trade as speculators raised their bets. On the National Commodity and Derivatives Exchange, refined soya oil for December delivery moved up by ₹5.1, or 0.41 per cent, to ₹1,240 per 10 kg in 46,730 lots. Analysts said widening of positions by traders mainly helped refined soya oil prices to trade higher in futures market.
Airbus has singed a deal with Bharat Electronics Ltd (BEL) under the C295 aircraft programme of Indian Government for the manufacture and supply of Radar Warning Receiver (RWR) and Missile Approach Warning System (MAWS).
The contract is in line with 'Make in India' policy and is the biggest export order received till date by BEL.
Today, BEL shares were trading down 3.26% at 202.05 apiece in noon deals on NSE.
Saudi Aramco said it will continue to look for investment opportunities in India, days after Reliance Industries Ltd. scrapped a plan to sell a stake in its oil-to-chemicals unit to the Middle Eastern company. “India offers tremendous growth opportunities over the long term," Aramco said in a statement on Sunday. It will “continue to evaluate new and existing business opportunities with our potential partners."
Jesons Industries, a manufacturer of speciality coating emulsions, has filed preliminary papers with capital markets regulator Sebi to raise an estimated ₹800-900 crore through an initial share sale.
The initial public offering (IPO) comprises a fresh issue of equity shares aggregating up to ₹120 crore and an offer for sale of up to 12,157,000 equity shares by promoter Dhiresh Shashikant Gosalia, according to the draft red herring prospectus (DRHP).
KPI Global Infrastructure secured a repeat order for executing solar power project of 5.20 MWdc capacity from existing client Devika Fibres, Surat (Gujarat) under the Captive Power Producer (CPP) segment of the company. On 17 November, the company had bagged a deal for executing a solar power project of 1.80 MWdc capacity from Shabnam Petrofils in Surat (Gujarat) under CPP segment.
The number of weekly average daily fliers stood at 364k (91% of the pre-covid average seen between April ’19-February ’20) in the week ended 20 November ’21 vs 352k in the week ended 13 November ’21. For the week ended 20 November ’21, the average number of daily departures increased to 2,712 vs 2,678 in the previous week. The number of fliers per departure rose to 134 vs 131 in the prior week.
Following Paytm shares heavy selloff, recently listed shares like Policybazaar (PB Fintech shares), Nykaa and Zomato are also witnessing huge slump. At a time when Paytm shares have plunged around 40 per cent from its upper price band of ₹2150, Zomato share price has dipped near 7 per cent, PB Fintech shares have dipped to the tune of 8 per cent whereas Nykaa share price went off around 1 per cent in intraday trade session.
Federal bank is one of India’s largest old generation private sector banks with total assets of ₹1.9 lakh crore with deposits of ₹1.56 lakh crore and a loan book of ₹1.2 lakh crore in F21. NPA’s have remained steady for the bank over the past few years with GNPA for Q3FY21 at 3.38% while NNPA ratio stood at 1.14%. PCR at the end of Q3FY21 stood at ~67% which we believe is adequate. Restructuring book is expected to be at ₹1,500-1,600 crore out of which ₹1,067 crore has already been restructured. This is against earlier expectations of total restructuring of ₹3,000-3,500 crore.
CMP: ₹95
Target: ₹135
Shares of Reliance Industries or RIL fell 4%, after the company said last week it had decided with Saudi Aramco to reevaluate a proposed $15 billion stake sale in its oil-to-chemicals arm to the Saudi oil producer.
Ashok Leyland Ltd (ALL) is one of the leading players in the Indian CV industry with a 32% market share in the MHCV segment. The company also has a strong presence in the fast-growing LCV segment. Demand for MHCV was adversely impacted post peaking out due to multiple factors including changes in axel norms, increase in prices due to implementation of BS 6 norms followed by a sharp drop in demand due to the ongoing Covid-19 crisis. While demand for the LCV segment has been growing smartly post the pandemic, demand for the MHCV segment has also started to recover over the past few months before the 2nd lockdown. We believe that the company is ideally placed to capture the growth revival in the CV segment and will be the biggest beneficiary of the Government’s voluntary scrappage policy and hence rate the stock a BUY.
CMP: ₹139
Target: ₹175
Vijay Shekhar Sharma's wealth eroded over $781 million in two sessions after One97 Communications Ltd, the parent company which owns and operates brand Paytm, stock continued its downtrend. Paytm's market capitalisation has now slipped below ₹1 trillion.
Before the opening of the IPO, Sharma's stake in the firm was valued at $2.3 billion at its issue price of ₹2150. Sharma, who founded the company in 2000, holds 9.1% stake or close to 6 crore equity shares in Paytm. He also holds 2.1 crore options in the firm.
After plunging around 27 per cent after listing on Thursday, Paytm shares today further crashed nearly 10% in early deals. Shares of the digital payments startup today opened with a downside gap of ₹51.80 per share, and went on to lose around 10% from its listing date close of ₹1560.80 per share on NSE.
ISGEC Heavy Engineering (ISGEC) reported standalone revenue growth of 11% YoY to ₹11.5 billion in Q2FY22. Standalone EBIDTA margin shrunk by a significant 550bps YoY to 3.1% due to higher cost overheads. Management guided margins are likely to remain subdued till Q4FY22 as cost challenges persist. Due to increased commodity prices, management has been judicious in bidding for orders, and this led to a weak consolidated order intake of ₹8.5 billion during the quarter. However, the current consolidated order book is strong at ₹75 billion (1.7x TTM sales). Factoring-in near term margin stress, we marginally cut standalone earnings by 27% and 15% for FY22E and FY23E respectively. Given the healthy order book and a strong pipeline of orders, we maintain our BUY rating on the stock with a revised SoTP-based target price of ₹756 (earlier: ₹869).
Home decor companies saw robust performance in the September quarter. Pent-up demand, aided by revival in the real estate sector, translated into double-digit volumes growth across product categories. However, this time around, wood panel makers and tile companies showcased better performance than pipe manufacturers, thus overtaking the latter on revenue growth and operating metrics.
"In Q2FY22, wood panel companies outperformed with revenue/Ebitda/profit after tax growth of 54%/60%/77% YoY led by strong volume growth across categories— plywood, laminates, MDF and particle board. Tiles too witnessed 35%/29%/38% YoY growth and healthy margins," analysts at Edelweiss Securities Ltd said in a report. Ebitda is short for earnings before interest, tax, depreciation and amortization.
Nuvoco Vistas Corporation (NUVOCO), led by Dr. Karsanbhai Patel Nirma group, has emerged as the fifth largest cement group in India and is amongst top-3 in East region with 23.8mnte capacity (as of September), post 8.3mnte acquisition of NU Vista (earlier Emami Cement) in July 2020. We believe cost synergies from the said acquisition, improved cost efficiencies, higher premiumisation coupled with scale benefits and operating leverage may drive ~30% ( ₹265/te) blended EBITDA/te rise to ₹1,180/te over FY21-FY24E. Valuation at 8.6xFY24E EV/E or $125/te adequately factors concerns around higher East region concentration, higher leverage and lower profitability vs peers, in our view. As NUVOCO narrows its EBITDA/te gap vs peers, the valuation gap may shrink. We initiate coverage on the stock with a BUY rating and target price of ₹645/share (11x Sep’23E EV/E). Key risks: lower demand/prices, and high concentration (~70%) in the East region.
Indian shares slipped on Monday as market heavyweight Reliance Industries led energy stocks lower and the return of Covid19 restrictions in Europe weighed on investor sentiment. The blue-chip NSE Nifty 50 index dropped 0.61% to 17,656.20, while the benchmark S&P BSE Sensex fell 0.65% to 59,250.74
Shares of Mukesh Ambani-led Reliance Industries fell 3.71% after the oil giant said last week it had decided with Saudi Aramco to reevaluate a proposed $15 billion stake sale in its oil-to-chemicals arm to Saudi Aramco. The Nifty Energy Index fell 1.75%, led by losses in Reliance. Other laggards on the sub-index were state-run Oil and Natural Gas Corp, down 2.85%, and Tata Power Company, down 2.07%.
"Markets are in a precarious position. We are threatening the 17600 level and if we break this level on a closing basis, the Nifty could slide down to 17200. The index has a resistance at 18100-18200 and unless we do not get past that, the trend of the markets will remain sideways to negative."
-Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Shares of Latent View Analytics is going to list at Indian bourses on 23rd November 2021 and lucky bidders are busy guessing about the listing gain they would get on tomorrow. For such bidders, there is a piece of good news from the grey market. Latent View Analytics share price in the grey market has shot up today. As per the market observers, shares of Latent View are available at a premium of ₹360 in the grey market today.
Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) and Saudi Aramco on Friday decided to re-evaluate the proposed investment by Aramco in the oil-to-chemical (O2C) business in light of the Indian firm's new energy forays.
Insurtech company RenewBuy is planning to come up with its initial public offering (IPO) in about two years from now, banking on the healthy growth of business and a strong pedigree, its CEO and co-founder Balachander Sekhar said.
The agent-led digital-driven insurtech company was founded in 2015 by Sekhar and Indraneel Chatterjee to bridge the demand-supply gap of insurance in the semi-urban and rural areas in India.
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