Sensex, Nifty end flat in choppy trade; PSU Banks shine14 min read . Updated: 03 Dec 2020, 03:49 PM IST
- After opening on a firm footing, Indian benchmark share indices fell from record highs and settled on a flat note.
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After opening on a firm footing, Indian benchmark share indices fell from record highs and settled on a flat note.
Sensex declined about 335 points from day's high and closed at 44,632.65, up 14.61 points or 0.03%. Nifty ended 20.15 points or 0.15% higher 13,133.90.
Maruti Suzuki, closing over 7% higher, was top Sensex gainer followed by ONGC, NTPC and SBI. HDFC Bank, TCS, Infosys, Bajaj Auto and M&M were among the laggards. Of 30 Sensex shares, 19 closed in the red.
Mid-cap IT stocks outperform larger peers in 2020 but valuations are a concern
The going has been good for most information technology (IT) stocks so far, but they run the risk of getting ahead of themselves, particularly in the case of mid-cap IT stocks. Gains in mid-cap IT stocks have outpace those of their larger peers this year, with returns at 50-90%. The same for tier-one tech companies was in the range of 24-60%. Even so, the run-up may taper off as earnings growth is expected to normalise. (Full report)
CARE Ratings on Cement Industry
After registering a negative growth rate in the last 7 months, cement production has increased by 2.8% during October 2020. Growth in production can be ascribed to the increase in demand with the pickup in infrastructure projects which had been stalled since a while. Receding of the monsoons and return of several migrant workers too has contributed to higher production.
Cumulatively domestic cement production has fallen by 21.3% during 7MFY21 compared with the 15% growth and 0.6% degrowth in production achieved during 7M-FY19 and 7M-FY20. Outbreak of the COVID-19 pandemic in the Indian sub-continent which forced the government to announce a nation-wide lockdown, 25th March 2020 onwards has majorly affected the cumulative domestic cement production. The nationwide lockdown had come at the time when construction activities are at its peak.
Indian economy witnessing V-shaped recovery: Finance Ministry report
The Indian economy is witnessing a V-shaped recovery as the Gross Domestic Product (GDP) has recorded a quarter-on-quarter growth of 23% in the July-September quarter of this fiscal, according to the Finance Ministry's latest Monthly Economic Review. (Full report)
SC asks Franklin Templeton to hold meeting with investors
The Supreme Court on Thursday asked Franklin Templeton Mutual Fund to initiate steps within one week for calling a meeting of unit holders to seek their consent for closure of six mutual fund scheme and said there will be no redemption of units by investors till further orders.
The top court also agreed to hear an appeal filed by Franklin Templeton against the Karnataka High Court order which stopped the fund house from winding up its debt fund schemes without prior consent of the investors.
A bench of Justices S Abdul Nazeer and Sanjiv Khanna observed that the issue is big and people wanted a refund.
HDFC twins, Infosys, TCS drag Sensex into the red
RIL shares prices rise for third day in a row
RIL shares advanced over 1% on Thursday to week's high of ₹1,979 apiece, as the stock extended gains to the third day. The scrip hit a 52-week high of ₹2,368 per share in September and has struggled in a range since then.
Mumbai NCLT approves Jio's resolution plan for Anil Ambani's Reliance Infratel
The Mumbai bench of the National Company Law Tribunal has approved Reliance Jio's resolution plan for the Anil Ambani-owned Reliance Infratel. Following this, lenders of Reliance Infratel will receive about ₹4400 crore for the bankrupt company's tower and fibre assets. (Full report)
Nifty Bank top sectoral gainer on NSE
Tata Chemicals up 7%
Tata Sons Pvt Ltd, a promoter of Tata Chemicals, on Wednesday purchased more than 18 lakh shares of the company worth over ₹76 crore via open market transaction. As per Tata Chemicals' shareholding data for September 2020 quarter, Tata Sons held 29.39% stake in the company as a promoter.
Apollo Hospitals drops 0.7%
Healthcare major Apollo Hospitals Enterprise on Wednesday said its board has approved the proposal to seek shareholders' nod for raising up to ₹1,500 cr by way of postal ballot.
Reliance Capital up 5%
The company has received preliminary bids from private equity firms, including Blackstone, Bain Capital and Oaktree, for the businesses it has put up for sale.
Burger King IPO subscribed nearly 5 times on day 2
The initial public offering of Burger King India, a quick service restaurant chain, was subscribed nearly 5 times till 12.20pm on 3 December, the second day of bidding. The ₹810 crore IPO has received bids of 364.19 million against 74.49 million shares issued, according to NSE website.
Ceat up 1%
Tyre maker Ceat on Wednesday said it has partnered Nissan Motor for supplying tyres for the Japanese carmaker's newly-launched subcompact SUV Magnite. The compact SUV market in India is set to grow exponentially in the coming years, and Ceat has best in class product offering in this segment, the company said in a release.
DHFL up 5%
Lenders to Dewan Housing Finance Corp Ltd have moved the Mumbai bench of National Company Law Tribunal (NCLT) to initiate personal insolvency proceedings against the erstwhile promoters Kapil and Dheeraj Wadhwan. DHFL owes ₹87,031 crore to financial creditors, including ₹39,000 crore from banks.
Indian benchmark share indices opened on a firm footing on Thursday, but pared most of the gains dragged by losses in HDFC twins, Infosys and TCS. The Reserve Bank of India (RBI) asked the HDFC Bank to temporarily stop all launches of its digital business generating activities under "Digital 2.0" programme, including sourcing of new credit card customers.
After hitting an intraday high of 44,953.01, at 12:12pm Sensex dropped to 44,678.22, up 60.18 points or 0.13% from its previous close. Similarly Nifty was at 13,138.75, up 25.00 points or 0.19%.
SBI, Maruti Suzuki, rising over 4%, were top Sensex gainers followed by NTPC, Tata Steel and Asian Paints. Ultratech Cement, Infosys, HDFC twins were among the laggards. Of 30 Sensex shares, 18 were in the green.
Bharti Infratel up 3.34%
Nettle Infrastructure Investments, a subsidiary of Bharti Airtel, has acquired an additional 4.94% stake in Bharti Infratel for ₹2,882.32 crore. With this transaction, Bharti Airtel's total direct and indirect stake in its mobile tower arm Infratel has increased to 41.66%.
Max Estates leases 62,500 sq. ft. office space at Max Towers, Noida to Yes Bank
Max Estates, a subsidiary of Max Ventures & Industries Ltd. (MaxVIL), today announced leasing of approximately 62,500 sq ft. at its Iconic Max Towers in Noida to Yes Bank, which plans to relocate its offices from the Central Business District to the new location as part of its exercise to rationalize cost. Yes Bank has taken 62,500 sq. ft. spread across 2.5 floors of the Max Towers.
Angel Broking on Gold, Silver
"Global central banks are expected to keep their interest rates low in an attempt to get the economy back on track which is also supportive for Gold. As for today traders can go for BUY in gold at ₹48700 levels with the stop loss of ₹48500 levels for the target of 49400 levels. They can also go for BUY in Silver at ₹63000 levels, with the stop loss of 62300 levels and for the target of 64500 levels," said Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking Ltd.
With consolidation picking pace, pipe stocks gain popularity among investors
Investors are lapping up stocks of pipe manufacturers as consolidation in this highly fragmented industry is picking pace. Stocks of key listed companies such as Supreme Industries Ltd, Finolex Industries Ltd and Prince Pipes & Fittings Ltd, have clocked fresh 52-week highs in November. (Full report)
SC on Franklin Templeton case
SC directs for stay on redemption request from investors, says Sebi has a 'lot to answer for'. Sebi will have to take the responsibility, it added.
India’s bond market is bracing for a liquidity vigilance from RBI
The Reserve Bank of India’s (RBI) rate setting committee would make public its vote on interest rates and policy stance on Friday. The liquidity glut and the crash in short-term rates has meant that analysts are expecting some wordplay by the central bank and perhaps even measures to address this. (Full report)
Angel Broking gives 'buy' rating on Bhandan Bank
The brokerage has given a 'buy' rating on Bhandan Bank with a target price of ₹450. "Bandhan bank is one of India’s leading east based micro finance lending led bank. This places the bank at a significant advantage over other MFIs in the form of very low cost of funds. While Bandhan Bank started off as a MFI it is diversifying its loan book," Angel Broking said.
"With the takeover of Gruh Finance mortgages account for ~ 26% of the banks lending books while commercial banking accounts for ~6.5% of the company's loan book. The company is looking to diversify its loan book and geographical spread over the next 5 years. The company has posted better than expected set of numbers for Q2FY21 with and has posted NII growth of 25.8% YoY while operating profit has registered a growth of 24.5% YoY. Collection efficiency has also improved to 91%/98%/98% for MFI/Housing and CIB segments in Oct’20. Management has highlighted that disbursements are going to be back to pre Covid levels in Q3FY21," it added.
India services PMI expands for the second month in a row
Data released by the analytics firm IHS Markit showed the purchasing managers’ index (PMI) for services expanded at 53.7 in November even as it fell from 54.1 in October. A figure above 50 indicates expansion, while sub-50 signals contraction. (Full report)
HDFC Bank erases gains, slips into the red on RBI order
The Reserve Bank of India (RBI) has issued an Order to the HDFC Bank with regard to certain incidents of outages in the internet banking/ mobile banking/ payment utilities of the Bank over the past 2 years, including the recent outages in the bank’s internet banking and payment system on November 21, 2020 due to a power failure in the primary data centre.
The RBI has advised the Bank to temporarily stop all launches of the Digital Business generating activities planned under its program ‐ Digital 2.0 (to be launched) and other proposed business generating IT applications and sourcing of new credit card customers.
China stocks falter as US House clears delisting bill
China stocks edged lower on Thursday after the US House of Representatives passed a bill that threatened to delist Chinese companies off US stock exchanges, a move likely to further ratchet up tensions between Washington and Beijing.
At the midday break, the Shanghai Composite index was down 0.09% at 3,446.19 points, while China's blue-chip CSI300 index slipped 0.11%.
Chinese H-shares listed in Hong Kong fell 0.07% to 10,566.52, while the Hang Seng Index was up 0.56% at 26,682.16.
Tata Chemicals extends winning run after parent increases stake
Shares in Tata Chemicals Ltd. rose on Thursday, set for another record high amid 11th day of gains, its longest winning streak in 18 years, after its parent Tata Sons increased stake in the company.
Tata Sons Private Ltd. bought about 1.80 million shares in the company at ₹420.92 apiece in a block deal on Wednesday, according to NSE’s data Tata Sons Private Ltd. held 29.39% stake in the company as on 30 September.
The scrip advanced 45% in the past 52 weeks.
The shares are up 23% in the past 5 days and rose 46% in the past 30 days.
Tata Chemicals trades at 25 times its estimated earnings per share for the coming year. It trades at 1.7 times trailing EPS.
The company is priced at 0.9 times book value.
The company’s dividend yield is 2.4% on a trailing 12-month basis and 2.4% based on Bloomberg Dividend Forecasts for the next 12 months. (Bloomberg)
Steel Strips Wheels up 1.4%
Steel Strips Wheels Ltd. has confirmed export orders of nearly 99,000 wheels for the EU market, to be executed in the period of 3 months, starting Jan'21 from its Chennai plant. Orders of similar capacity are anticipated from the same customer base as businesses have picked up speed, it said in a stock exchange filing.
Tata Steel up 2.3%
Nava Bharat Ventures enters into conversion agreement with Tata Steel’s arm Tata Steel Mining Ltd (TSML) till Mar 2025 for conversion of high carbon ferro chrome.
The Agreement postulates that the entire smelting capacity of the Odisha plant is dedicated to TSML to produce up to 70,000 metric tons of high carbon ferro chrome per annum.
Rupee opens at 73.81 against the US dollar versus Wednesday's close of 73.80.
HDFC Bank, RIL lift Sensex by over 150 points
"We had a marginal gap up opening and have again come to test the 13150 level which is a crucial point for the Nifty. We need to keep above this level on a consistent basis in order to continue the upside rally. If that happens, we could reach the levels of 13250-13300. When the markets corrected yesterday, strong support was made at the 12950-13000 level. Keeping that as a new base, traders can go long on this market," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Maruti Suzuki up over 3%
The country's largest carmaker Maruti Suzuki India (MSI) had reported a 1.7% increase in sales to 1,53,223 units in November.
The company had sold 1,50,630 units in November last year, Maruti Suzuki India (MSI) said in a statement.
Domestic sales increased marginally to 1,44,219 units last month as against 1,43,686 units in November 2019, it added.
Most sectoral indices on NSE in the green; IT stocks buck the trend
Wipro up 0.47%
Wipro Limited on Wednesday announced that it has won a multi-year contract from Verifone, a global leader in payments and commerce solutions, to drive agility across its cloud services offerings.
Bengaluru-headquartered Wipro said it would develop new features, capabilities and interfaces for Verifones Cloud Services offerings, enabling seamless and flexible transaction processing for the company.
Indian benchmark share indices opened higher on Thursday amid mixed cues from Asian peers. Sensex opened at 44,902.02, up 283.98 points or 0.64%, while Nifty climbed 101.55 points or 0.77% to open at 13,215.30.
Maruti, up nearly 1.5%, was the top Sensex gainer followed by L&T, Tata Steel and ONGC. Axis Bank, Bajaj Auto, Power Grid and TCS were among the laggards.
Stocks to Watch
Bharti Airtel, Wipro, Ceat, DHFL, Reliance Capital and M&M are among the top ten stocks that may be in focus today. (Full report)
Indian stocks trade higher in the pre-opening session on Thursday. At 9:06am , Sensex was at 44,911.12, up 293.08 points or 0.66%, while Nifty advanced 106.95 points or 0.82% at 13,220.70.
RIL tops Fortune 500 list of Indian companies, IOC at second spot
Oil-to-telecom conglomerate Reliance Industries Ltd topped the Fortune 500 list of Indian companies, Fortune India announced on Wednesday.
Indian Oil Corporation Ltd (IOC), the nation's biggest oil firm, bagged the second spot, followed by Oil and Natural Gas Corporation (ONGC) at the third, it said.
The country's largest lender State Bank of India was in the fourth position, while India's second-biggest fuel retailer Bharat Petroleum Corporation Ltd (BPCL) took the fifth spot.
The list was published by Fortune India, which is part of the Kolkata-based RP Sanjiv Goenka Group.
Market at close on Wednesday
The BSE Sensex slipped from record highs to end marginally lower on Wednesday while the Nifty edged up to a fresh closing record amid profit-booking in financial stocks and muted global cues.
After touching a low of 44,169.97 during the session, the 30-share Sensex pared most losses to finish at 44,618.04, down 37.40 points or 0.08%.
The broader NSE Nifty edged higher by 4.70 points or 0.04 per cent to end at its fresh closing record of 13,113.75.
Banking and finance stocks bore the brunt of profit selling ahead of the RBI policy announcement this week. Kotak Bank was the top loser among Sensex stocks, dropping by 3.28%.
Asian shares mixed
Asian shares were mixed on Thursday after a choppy day of Wall Street trade, while the US dollar languished near 2-1/2 year lows on growing optimism of a coronavirus vaccine.
MSCI's broadest index of Asia-Pacific shares outside of Japan were barely changed following two straight days of gains.
Japan's Nikkei was a little changed.
South Korea's KOSPI was up 0.3%.
China's Shanghai Composite dropped 0.55%, while Hong Kong's Hang Seng advance 0.3%.
Australia's ASX 200 climbed 0.4%.
Singapore's SGX Nifty added 0.3%.
Wall Street mixed as vaccine hopes collide with poor jobs data
The S&P 500 climbed to a record high close on Wednesday and the Nasdaq Composite Index dipped as investors weighed upbeat vaccine developments and a potential coronavirus fiscal package against a bleak private jobs report.
The Dow Jones Industrial Average rose 0.2% to end at 29,883.79 points, while the S&P 500 gained 0.18% at 3,669.01.
The Nasdaq Composite slipped 0.05% to 12,349.37, dragged by a 2.7% slide in Tesla Inc.