PremiumNEW DELHI : Sensex and Nifty saw trading in the red through the day. Most sectoral indices and broader market indices remained in red in a day largely marked by flat trading. Individual shares such as M&M performed well on the market, while selling pressure continued throughout. Metals, realty and PSU banks were top drags on Nifty. Nykaa's stock listed on the markets and were well received taking its market capitalization to more than ₹1 trillion.
The rupee tumbled by 32 paise to end at 74.37 against the US currency on Wednesday, weighed down by a muted trend in domestic equities and strength of the American currency in the overseas market. At the interbank foreign exchange market, the local currency opened at 74.11 and witnessed a high of 74.06 and a low of 74.42 against the US dollar in the day trade. The local unit finally settled at 74.37 a dollar, down 32 paise over its previous close. On Tuesday, the rupee had settled at 74.05 against the US dollar. According to Emkay Global Financial Services, "Inflationary concerns are increasing globally and as we proceed with the week, the IPO related inflows may dry out, keeping USD/INR spot afloat". The key catalyst for the forex market is the US inflation data. A lower-than-expected CPI figure will reflect a 'transitory' factors, however, a higher-than-expected data or a figure in line with market consensus will induce the Fed to accelerate the pace of asset purchases, it said, adding that "we expect USD/INR spot to trade in between 73.75-74.50".
Gold price in the national capital on Wednesday gained ₹137 to ₹47,311 per 10 grams amid rupee depreciation, according to HDFC Securities. In the previous trade, the precious metal had settled at ₹47,174 per 10 grams. Silver, however, declined by ₹160 to ₹63,482 per kilogram from ₹63,642 per kilogram in the previous trade. Rupee dipped 32 paise to close at 74.37 against US dollar on Wednesday. In the international market, gold was trading lower at $1,827 per ounce and silver was flat at $24.30 per ounce.
The index was unable to get past the 18,100 level which is the critical juncture at this point in time. If the Nifty can keep above 18,100 for a couple of sessions, we can move up to 18,400 and then 18,600 as targets 1 and 2 respectively. 17,700-17,800 has become the new support for the markets.
Nifty had a another day of sideways movement. Today again it took resistance at its 20 period moving average. It closed at 18,012 after making a low of 17,915. Nifty has resistance in 18,050-18,100 range and support at 17,800 and 17,650 levels. Traders are suggested not to initiate new longs till the time Nifty closes above 18,100 with higher than average volumes.
Sensex ended trade on Wednesday at 60,352.82, down 80.63, or 0.13%. Nifty closed at 18,017.20, down 27.05 points, or 0.15%. The markets, after opening with gaps down, continued trading flat in the red for most part of the day amid volatility aided by selling pressure. Asian and global cues led to profit booking by investors. Most sectoral and broad market indices remained in the red for most part of the day. Auto and pharma were the sole sectors in the green throughout the day on NSE. Energy, oil and gas and telecom remained in the green on BSE. However, unlike on Tuesday, broader indices remained in the red. Individual stocks, such as M&M, made gains. On Sensex Bharti Airtel, M&M and Sun Pharma were among the top gainers while IndusInd Bank, Tata Steel and Hindustan Unilever languished in the red. On Nifty, UPL, Bharti Airtel and M&M were top gainers, while Hindalco, IndusInd Bank and JSW Steel were top drags. On BSE, 1,720 of the 3,458 stocks listed advanced through the day, while 1,587 stocks declined and 151 remained unchanged. Nifty was 969 of its 2,037 stocks advance, while 1,003 declined and 65 remained unchanged. The advances-decline ratio was 0.97%.
Eveready Industries India Ltd. has reported Q2 consolidated net profit of ₹310 million compared with ₹572 million in year-ago period. Eveready's revenue was ₹3.6 billion compared with ₹3.7 billion year-on-year. The results are poor both year-on-year and quarter-on-quarter.
Bank of Baroda has reported Q2 SL net profit of ₹20.9 billion compared with ₹16.78 billion year-on-year. The figures were also higher than ₹12.08 billion quarter-on-quarter. The street estimate was ₹16.4 billion. Gross NPAs of the bank stood at 8.11% in Q2 compared with 8.86% in the previous quarter. Q2 net NPA was at 2.83% compared with 3.03% quarter-on-quarter.
India-focused offshore funds and exchange-traded funds (ETFs) witnessed a net outflow of $95 million in three months ended September 2021, making it the 14th consecutive quarter of withdrawal, according to a Morningstar report released on Wednesday. This was significantly lower than the net outflows of $1.55 billion registered during the quarter ended June 2021. India-focused offshore funds and ETFs are some of the prominent investment vehicles through which foreign investors invest in the Indian equity market. The offshore fund segment witnessed net inflows, after 13 consecutive quarters of net outflows. The category garnered net assets worth $13.6 million in the September 2021 quarter, which was in contrast to the net outflows of $1.7 billion recorded in the previous quarter. In contrast, the offshore ETF segment witnessed net outflows of $108.2 million in three months ended September, after three consecutive quarters of net inflows.
Copper prices on Wednesday traded up by 0.67% to ₹740.40 per kg in futures market on the back of a pick-up in spot demand. In the Multi Commodity Exchange, copper contracts for delivery in November traded higher by ₹4.90, or 0.67%, to ₹740.40 per kg in a business turnover of 4,841 lots. Analysts attributed the rise in copper prices to raising of bets by participants driven by a surge in spot demand.
Nykaa parent FSN E-Commerce Ventures Ltd is going strong in its debut on the markets. The strong listing took Nykaa's market capitalization to above ₹1 trillion placing it among the top-60 most valuable companies on the BSE. The company had market capitalization of ₹1.003 trillion as of 10:03 am. In terms of market capitalization Nykaa was at 55th position in the overall m-cap ranking of the BSE listed companies.
One97 Communication Ltd's IPO has been fully subscribed with the shares receiving bids of 1.35 times. Qualified institutional buyers' category saw bidding of 1.89 times the 26,394,231 shares on offer. The retail individual investor category saw 1.59 times bidding for 8,798,076 shares.
Britannia, which had seen huge losses on Tuesday following the announcement of its quarterly results, has come back strongly to register over 2% gains. Godrej Consumer Products, ITC and Tata Consumer Products are among the other gainers on the index.
Strides Pharma Science Ltd has reported a Q2 consolidated net loss of ₹847 million compared with ₹809 million year-on-year. The company's Q2 ebitda was ₹10 million compared with ₹1.66 billion year-on-year. The street estimate of ebitda was ₹385 million. Ebitda is earnings before interest, tax, depreciation and amortization. The company also announced that it expects to commercially launch Sputnik vaccine within Q3FY22.
Benchmark indices have reduced the losses made in the first half of the the day and are approaching previous day's close. Nifty has returned above the 18,000 mark. Sensex was above 60,300 mark.
Reliance Chemotex Industries Ltd has reported a net profit of ₹440 lakh in Q2FY22 compared with ₹5.96 lakh in the year-ago period. It is also an improvement on Q1 net profit of ₹305.68 lakh for the firm. Reliance Chemotex had reported a net profit of ₹693.13 lakh in the year ended 31 March, 2021. The company's revenue from operations in Q2 was ₹8,898.51 lakh, compared with ₹6,243.99 lakh in the year-ago period.
Only auto and pharma are the indices on NSE that are in green, barely. The other indices, led by metal, realty and PSU bank are in the red.
Hindustan Zinc Limited has informed exchanges that Crisil Rating has reaffirmed that A1+ rating for its Rs7,500 crore commercial paper.
Zydus Cadila has received final approval from the USFDA to market Glycopyrrolate Injection in the strengths of 0.2 mg/mL and 0.4 mg/2 mL (0.2 mg/mL) Single-Dose Vials and 1 mg/5 mL (0.2 mg/mL) and 4 mg/20 mL (0.2 mg/mL) Multiple-Dose Vials, (US RLD: Robinul). The drug will be manufactured at the group’s injectables manufacturing facility at CHL-Jarod, near Vadodara (earlier known as Liva Pharmaceuticals Ltd.).
Indian Terrain Fashions has reported Q2FY22 net profit after tax of ₹19.6 million compared with loss of ₹174.9 million year-on-year. The company's revenue from operations was ₹971.2 million in the September quarter compared with ₹393.2 million in the year-ago period.
The Nykaa IPO received great response from investors and was subscribed ~ 82 times which translated to a blockbuster listing for the stock. The stock is trading at an 80% premium to the issue price of ₹1,125. We had given a subscribe rating to the IPO. At current levels Nykaa is trading at price to sales of 38.9x of FY2021 revenue which is at a discount to Zomato (54xFY2021 revenues). Nykaa is one of the very few profitable Unicorns in India and we believe that the company is well positioned to benefit from the exponential growth in the online beauty and fashion retailing business over the next decade. Given the discount to Zomato we would recommend investors to remain invested in Nykaa from a long term perspective.
Sensex and Nifty are trading flat with the former remaining over the 60,000 mark, and the latter continuing closely below the 18,000 mark. Metal, and realty have remained top drags on the markets, while auto, pharma, telecom, oil and gas and energy have seen gains.
RailTel Corporation of India Ltd has announced the receipt of work order from Centre For Railway Information Systems for setting up of three-way DR of FOIS of total value of ₹22.39 crore.
For Bharat Heavy Electronics Ltd (Bhel), the three months ended September (Q2) was yet another loss making quarter, providing no respite to its inventors. Consolidated net loss in Q2FY22 stood at ₹45.98 crore compared with ₹552.02 crore loss a year ago. Income from operations rose 43% year-on-year (y-o-y) to ₹4,910.62 crore. The company's management said the pandemic-led disruption led to a revenue loss of around ₹1,500 crore in the September quarter of the current fiscal as it stopped executing orders where cash flow issues existed. Little surprising then that shares of the company fell around 6% on the National Stock Exchange in opening deals on Wednesday. With that, the Bhel stock was the biggest loser among F&O Securities. (Read here)
India Cements reported a Q2FY22 profit of ₹219.7 million compared with ₹714.3 million in the year-ago period. The company's revenue from operations in the quarter stood at ₹11.90 billion compared with ₹10.70 billion in the year-ago period.
On the BSE Metals three stocks advanced, while seven declined. On NSE, too, the sector saw over 1.5% losses.
Sensex and Nifty have been trading flat in the red amid volatility in the first half of the day.
The ₹600-crore IPO of Latent View Analytics has seen a 1.58 times bidding for shares on offer. For the 1,7525,693 shares on offer, 27,750,108 have been received. The retail individual investor category of shares has been bid 8.51 times. Qualified institutional buyers have not shown huge interest in the IPO so far on day one.
Gold
On Tuesday, Spot gold prices rose by 0.4% to close at $1831.5 per ounce. A slightly stronger US dollar ahead of the key US economic data kept a lid on the dollar-denominated commodities such as gold.
Investors are expected to have a keen eye on the US consumer prices data given the ongoing inflation fears and tight supply market.
The US Federal Reserve keeping interest rates near zero in the policy meet conducted last week hinted towards a Dovish approach in turn boosting appeal for Gold in the earlier trading sessions.
Mounting inflation woes and an accommodative approach by major central banks has created a supportive environment for the safe haven, gold.
Supportive monetary approach and a weaker US dollar is expected to push gold higher in today’s session.
Crude oil
On Tuesday, WTI crude soared over 2.7% to close at $84.2 per barrel. Bets over revival in global demand amid a tight supply market continued to underpin oil prices.
US withdrawing the travel restrictions, coupled with resumption in global economic activities is expected to boost demand for crude further pressuring the already tight supply chain.
OPEC continuing with the planned increase in output despite revival in global demand is expected keep Oil prices elevated in the week ahead.
However, worries over return of Iranian Oil in the global markets, increasing US Crude stocks and hike in prices by Saudi Arabia might turn out to be a setback for Crude prices.
Bets over increasing demand amid a tight supply market is expected to keep Oil prices elevated.
Base metals
Most industrial metals on MCX traded lower in line with the international markets as escalating concerns over the ongoing property crisis in China undermined the demand prospects for the base metals complex.
Also, China’s manufacturing PMI contracted for the second consecutive month in October’21 as increasing raw material prices, environmental norms and limitations on energy usage took a hit on their manufacturing activities.
As per reports from the National Bureau of Statistics (NBS), China’s official manufacturing Purchasing Manager's Index (PMI) slipped down to 49.2 in October 2021 from 49.6 in September’21.
However, a positive demand outlook for industrial metals with the $1 trillion US infrastructure bill being passed last week amid depleting inventories reignited shortage concerns limiting the fall in prices.
Copper
On Tuesday, MCX Copper prices ended lower by 0.53% as uncertainties arising from China’s economy clouded the outlook for Copper and other industrial metals.
The ongoing property crisis in China might overshadow worries over tightening supplies and push prices lower.
The IPO of Paytm parent One97 Communications Ltd has been subscribed 0.51 times as of 10:20 am on the last day of the offer. Retail individual investor category shares got bids of 1.29 times while qualified institutional investors bid for 0.47 times their allotment of shares. Non-institutional investor category bid 0.05 times of their allotted shares.
Shares of Nykaa’s parent company, FSN E-Commerce Ventures Ltd, made a stellar stock markets debut on Wednesday. The stock was listed at ₹2018, a 79.37% premium over its issue price of ₹1,125 apiece. The only profitable unicorn to be listed on stock exchanges, Nykaa’s valuations are attractive, analysts had said ahead of the issue. As the primary markets have heated up post-pandemic, other recently listed unicorns are CarTrade and Zomato. The ₹5,350 crore initial public offering (IPO) of Nykaa was subscribed 82 times during its share sale that ended on 1 November. (Read here)
The markets have opened on a tepid note—it continues to face resistance at higher levels. We are unable to sustain above 18,000-18,100 for even two sessions in a row. If the Nifty can get past that hurdle, we can scale higher to 18,400 and then 18,600. Until then it is a wait and watch situation as the markets are not bearish either so traders need to wait for a direction to emerge.
The shares are trading well above the IPO price ₹1,125 on debut.
PharmEasy's IPO filing comes on a day when Indian fashion e-commerce startup Nykaa is set to debut on stock exchanges. (Read here)
Both Sensex and Nifty have been trading sideways after opening with gap down. Sensex was down over 400 points and Nifty conceded the 18,000 mark that it had barely held on to at end of trade on Tuesday.
The auto index is in the positive and is one of the few sectors showing gains as benchmark indices are down on selling pressure. M&M is among the top gainers on the index.
Sensex and Nifty have opened in the red. Sensex was at 60,034.66, down 398.79, or 0.66%, at 09:19 am. NIfty was at 17,934.10, down 110.15, or 0.61%. All sectoral indices on Nifty, except, pharma were in red as were most broad market indices indicating selling pressure in line with Asian markets' showing.
NSE showed 1,200 advances, 830 declines and 99 unchanged securities out of the 2,129 listed with an advances-decline ratio of 1.45. On BSE 810 stocks showed advances, 546 declined and 112 were unchanged among 1,468 stocks. Sensex showed 6 advances and 22 declines. Nifty had 25 advances and 25 declines.
Gautam Adani is said to be in talks with two private equity firms for a potential partnership to enter the race to buy state-run oil refiner and marketing company Bharat Petroleum Corporation Ltd (BPCL), The Hindu Business Line has reported citing sources.
Nifty is expected to open negative, with a gap down of 120 points at 17,920. Since the last two trading sessions Nifty has been facing resistance at its 20-day moving average. Traders should avoid taking long positions till the time Nifty closes above 18,100 with higher than average volumes.
How to check application status online (Read here)
Members shall trade in the derivative contracts of said securities only to decrease their positions through offsetting positions, NSE said (Read here)
Markets are likely to be under pressure on Wednesday while trends in SGX Nifty indicate a weak opening of Indian benchmark indices. On Tuesday, the BSE Sensex ended at 60,433.45, down 112.16 points or 0.19% and the Nifty was at 18,044.25, down 24.30 points or 0.13%. Most Asian stocks slipped Wednesday as the latest Chinese data highlighted the inflationary pressures building up in the global economy. Treasury yields climbed ahead of a report on US consumer prices. (Read here)
In cryptocurrencies, Bitcoin and ether prices today declined after surging to record highs on Tuesday as both the virtual tokens currencies pulled back from their highs. Both have more than doubled since June and added nearly 70% against the dollar since the start of October. The world's largest cryptocurrency by market capitalization was trading a per cent lower at $67,089. The little more than decade-old market for digital assets has already roughly quadrupled from its 2020 year-end value. Bitcoin has gained over 131% year-to-date (YTD). Inflows into bitcoin products and funds have hit a record $6.4 billion so far this year, data from digital asset manager CoinShares showed, and totaled $95 million last week. (Read here)
October's sales of gasoline, or petrol, were 8.3% and 3.4% higher than in 2019 and 2020 respectively (Read here)
Fuel rates remain static for seventh day. Latest rates (Read here)
China’s factory-gate prices grew at the fastest pace in 26 years in October as raw material costs continued to soar, with signs that producers are passing on higher costs to consumers. The producer price index climbed 13.5% from a year earlier, beating economists’ forecasts of a 12.3% gain, data from the National Bureau of Statistics showed on Wednesday. The consumer price index rose 1.5%, the fastest pace since September 2020 and above the projected 1.4% gain. Producer prices in China have been rising rapidly in the past few months, first due to the global commodity price rally and then output curbs caused by a power crunch nationwide. Authorities have rolled out a series of measures to stabilize coal and other commodity prices to help producers cope with rising costs and ease the power shortage. While consumer inflation remained mild, largely due to falling pork prices, there are signs food prices could pick up. Vegetable prices have jumped since mid-October, affected by supply disruptions following poor weather conditions. The weight of vegetables in the CPI basket is relatively small, but there are concerns the surge could drive up prices of other food products. Vegetable prices rose 15.9% from a year ago, contributing 0.33 percentage point to the increase in CPI, according to the statistics bureau. Core inflation, which excludes food and energy, accelerated to 1.3%. Bloomberg
The dollar held a three-day loss against major peers and traded near a one-month low to the yen on Wednesday, with highly anticipated US inflation data looming that could guide the timing of a Federal Reserve interest rate increase. The dollar index, which measures the greenback against six rivals, was little changed at 93.997 after retreating gradually from a more than one-year peak at 94.634 reached on Friday. The currency was steady at 112.87 yen after dipping to 112.73 on Tuesday for the first time since 11 October. The euro was also about flat at $1.15915, maintaining a three-day gain that has brought it close to the month's high of $1.16165.
Oil prices rose on Wednesday, extending strong gains in the previous session, after industry data showed US crude stocks unexpectedly fell last week just as near term travel demand picked up with pandemic curbs easing. US West Texas Intermediate (WTI) crude futures rose 23 cents, or 0.3%, to $84.38 a barrel at 0132 GMT, adding to a 2.7% gain on Tuesday. Brent crude futures jumped 36 cents, or 0.4%, to $85.14 a barrel, after rising 1.6% on Tuesday. Tightening global oil inventories have supported strong crude prices during the past several months, and the latest data from the American Petroleum Institute reinforced the view that supply remains constrained.
Most Asian stocks slipped on Wednesday as the latest Chinese data highlighted the inflationary pressures building up in the global economy. Treasury yields climbed ahead of a report on US consumer prices. Shares fluctuated in Japan and dipped in Hong Kong and China, where factory-gate prices grew at the fastest pace in 26 years and consumer-price inflation topped estimates. Developer Fantasia Holdings Group Co. plunged after resuming trading amid the continuing troubles in China’s property sector. US futures retreated after the S&P 500 declined for the first time in nine sessions, hurt by financial shares. The Nasdaq 100 underperformed, in part on Tesla Inc.’s loss of $199 billion in value on a host of negative news. Longer maturity Treasuries pared a climb, which earlier saw the 30-year yield reach the lowest since July. Bonds were supported by an unwinding of bearish bets and speculation about a possible dovish shift in the leadership of the Federal Reserve. The dollar ticked up. Persistent price pressures that accelerate monetary-policy tightening are among the key risks for global stocks, which remain near record levels.
Stocks
S&P 500 futures fell 0.3% as of 10:47 a.m. in Tokyo. The S&P 500 fell 0.4%
Nasdaq 100 futures fell 0.3%. The Nasdaq 100 fell 0.7%
Japan’s Topix index dropped 0.1%
Australia’s S&P/ASX 200 Index rose 0.1%
South Korea’s Kospi index fell 0.8%
Hong Kong’s Hang Seng Index fell 0.5%
China’s Shanghai Composite Index dropped 0.7%
A mega bid by Canadian pension fund CPPIB and robust retail demand were the rare bright spots in Paytm’s public issue that struggled to achieve subscriptions of half the shares on offer on the second day. The ₹18,300 crore initial public offering (IPO) of One97 Communications Ltd, which runs Paytm, saw only the retail portion getting oversubscribed. The retail book, worth around ₹1,830 crore, was subscribed 1.23 times at the end of Tuesday, according to stock exchange data. (Read here)
Atomy Enterprise India, a subsidiary of Korean direct-selling brand Atomy, will invest approximately ₹250 crore in the Indian market by 2025 to set up over three manufacturing units in India to supply products to the world. This investment will come in the form of an FDI. The company specialises in skincare products, health supplements and food. It will focus on the food category to grow its India manufacturing business, said Abraham Lee, chief executive officer, Atomy Enterprise India. This will also include the supplements category which he said is consumed more frequently and hence has better sales. (Read here)
Tata Sons Ltd, the holding company of India’s largest conglomerate, is evaluating the sale of non-core real estate assets owned by its operating companies, including land, and residential and commercial real estate, two people aware of the plans said. The company has engaged consultants to identify and value the group’s real estate assets in India and abroad, the people cited above said on condition of anonymity, adding it expects to raise at least a few thousand crores of rupees through the exercise. (Read here)
US Treasury Secretary Janet Yellen repeated her view that elevated U.S. inflation won’t persist beyond next year and said the Federal Reserve will act if needed to prevent a rerun of 1970s-style price rises. “I’d expect price increases to level off, and we’ll go back to inflation that’s closer to the 2% that we consider normal" as the pandemic fades, Yellen said in an interview that aired Tuesday on National Public Radio’s “Marketplace" show. The Treasury chief said that an end to the pandemic would allow more people to return to work, and with consumer demand returning to normal patterns, that will relieve pressure from wages and goods prices.
GMP, subscription status (Read here)
GMP, subscription status, other details (Read here)
M&M, Hindustan Copper, and PFS are among stocks to watch (Read here)
Asian stockmarkets were becalmed on Wednesday as surges in oil and Chinese factory prices added to worries that a hot US inflation reading could renew pressure on policymakers to lift interest rates. US crude futures rose 1% to a two-week high of $84.97 a barrel in early trade and Brent futures made a one-week top of $85.35. Factory gate prices in China have soared 13.5% year-on-year to October, data showed, beating forecasts and warning of pressure heading down supply chains to global consumers. MSCI's broadest index of Asia-Pacific shares outside Japan and Japan's Nikkei each dropped 0.2% in and Overnight on Wall Street a long rally paused, with the Nasdaq logging its first fall in a dozen sessions. S&P 500 futures fell 0.2% in morning trade. US data due at 1330 GMT is expected to show consumer prices galloping higher at 5.8% year-on-year and even dovish Federal Reserve officials Neel Kashkari and Mary Daly have conceded it is running hotter for longer than they expected.
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