MARKET WRAP: Sensex ends flat at 44,633; Maruti up 7%, HDFC Bank slips 2%

Topics Markets | Nifty 50 | Sensex

India VIX, the volatility index, dropped 4.5 per cent to 19 levels.
The benchmark indices ended with meagre gains on Thursday after scaling record high in the opening deals. The S&P BSE Sensex ended 15 points, or 0.03 per cent higher at 44,633 levels while NSE's Nifty settled at 13,134, up 20 points, or 0.15 per cent.

India VIX, the volatility index, dropped 4.5 per cent to 19 levels. 

HDFC Bank (down 2 per cent) ended as the biggest loser on Sensex after the Reserve Bank of India (RBI) ordered the bank to halt digital launches and new credit cards. 

On the other hand, auto major Maruti Suzuki India (MSIL) emerged as the top gainer (up over 7 per cent). The stock also hit a 52-week high of Rs 7,777 during the day, before settling at Rs 7,740 on the BSE. 

The broader market continued to outperform the frontline indices. The S&P BSE MidCap index gained 0.85 per cent to 17,313 levels while the S&P BSE SmallCap index settled at 17,246, up 0.68 per cent. 

Sectorally, PSU bank stocks rallied in the trade with the Nifty PSU Bank index surging nearly 5 per cent to 1,673 levels. SBI ended around 4 per cent higher at Rs 256.40 on the NSE after global brokerage firm CLSA increased the target price to Rs 360. 

Global markets

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.

In Europe, shares made lacklustre moves in the early deals, awaiting more signals from Brexit negotiators, while tracking progress in stimulus measures and vaccines as economies still reeled from the fallout of the Covid-19 pandemic.

In commodities, oil prices rose as producers including Saudi Arabia and Russia locked horns over the need to extend record production cuts set in place in the first wave of the Covid-19 pandemic.

(With inputs from Reuters) 

4:16 PM IST Markets remained in a range for yet another session and settled with marginal gains. The opening was upbeat but profit-taking in select index heavyweights pulled the index lower as the day progressed. Subdued global cues combined with caution ahead of the RBI’s monetary policy outcome was weighing on the sentiment. Amid all, the broader indices continue to outshine the benchmark ended higher by 0.9 per cent and 0.7 per cent, respectively. On the sectoral front, except IT which witnessed some profit-taking, all the other indices ended with gains wherein Metal, Auto, Consumer Durables were the top gainers.   We expect the rate-sensitive pack, especially banking and financials, to be in focus on Friday, thanks to the scheduled outcome of RBI’s MPC meet. The banking index has been witnessing consolidation in line with the benchmark and might see a directional move after the event. Meanwhile, traders should restrict leveraged positions and wait for clarity. 

3:43 PM IST

3:42 PM IST

3:36 PM IST The S&P BSE Sensex ended at 44,633, up 15 points, or 0.03 per cent while NSE's Nifty ended at 13,134, up 20 points, or 0.15 per cent. 

3:18 PM IST

3:05 PM IST

3:01 PM IST RATING: BUY | TARGET PRICE: Rs 125  NMDC underperformed steel stocks by a wide margin over the last three months due to uncertainty regarding payment of premium for its Donimalai mine’s lease renewal. After two years impasse, the Govt of Karnataka renewed Donimalai mines (with capacity of 7mtpa) at a premium of 22.5% of sales price. We expect that a similar premium would be paid for its iron ore operations in Chhattisgarh, which constitutes 78% of its overall volumes. Severe shortage in domestic market (due to supply disruptions in Odisha), strong profitability of steel producers and firm outlook on global prices shall help NMDC to mitigate higher costs with stronger product prices. In light of strong price outlook and attractive valuations, we upgrade NMDC to BUY with TP of Rs125 (earlier Rs98) based on 1) EV/EBITDA of 3.7x FY22e for iron ore operations (factoring 22.5% premium on entire operations) and 2) EV/T of US$475 for 3mtpa steel plant.

3:01 PM IST

2:55 PM IST 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. READ MORE

2:49 PM IST "Right now we are in discussions with many governments around the world and remain committed to engaging with the Government of India and explore opportunities to make this vaccine available for use in the country," a Pfizer spokesperson said in a statement.   Pfizer is committed to ensuring everyone has the opportunity to have access to the vaccine,and is working closely with governments, it added. READ MORE

2:42 PM IST NIFTY REALTY INDEX: A strong move above the 200-weekly moving average (WMA) suggests a firm upward sentiment. This move is supported by market participants with volumes witnessing a rising trend. The Moving Average Convergence Divergence (MACD) has sustained above the zero line indicating an upside direction with momentum staying in the bulls' favour. The trend is heading in the direction of 300 levels with a closing basis support of 270. READ MORE  

2:35 PM IST

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MARKET COMMENT | Ajit Mishra, VP - Research, Religare Broking

Markets remained in a range for yet another session and settled with marginal gains. The opening was upbeat but profit-taking in select index heavyweights pulled the index lower as the day progressed. Subdued global cues combined with caution ahead of the RBI’s monetary policy outcome was weighing on the sentiment. Amid all, the broader indices continue to outshine the benchmark ended higher by 0.9 per cent and 0.7 per cent, respectively. On the sectoral front, except IT which witnessed some profit-taking, all the other indices ended with gains wherein Metal, Auto, Consumer Durables were the top gainers.
 
We expect the rate-sensitive pack, especially banking and financials, to be in focus on Friday, thanks to the scheduled outcome of RBI’s MPC meet. The banking index has been witnessing consolidation in line with the benchmark and might see a directional move after the event. Meanwhile, traders should restrict leveraged positions and wait for clarity. 

Nifty PSU Bank jumps nearly 5%


MARKET AT CLOSE | Gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex ended at 44,633, up 15 points, or 0.03 per cent while NSE's Nifty ended at 13,134, up 20 points, or 0.15 per cent. 

Top losers on the BSE at this hour


Global Markets :: European indices trade mixed


BROKERAGE VIEW | Prabhudas Lilladher on NMDC

RATING: BUY | TARGET PRICE: Rs 125 

NMDC underperformed steel stocks by a wide margin over the last three months due to uncertainty regarding payment of premium for its Donimalai mine’s lease renewal. After two years impasse, the Govt of Karnataka renewed Donimalai mines (with capacity of 7mtpa) at a premium of 22.5% of sales price. We expect that a similar premium would be paid for its iron ore operations in Chhattisgarh, which constitutes 78% of its overall volumes. Severe shortage in domestic market (due to supply disruptions in Odisha), strong profitability of steel producers and firm outlook on global prices shall help NMDC to mitigate higher costs with stronger product prices. In light of strong price outlook and attractive valuations, we upgrade NMDC to BUY with TP of Rs125 (earlier Rs98) based on 1) EV/EBITDA of 3.7x FY22e for iron ore operations (factoring 22.5% premium on entire operations) and 2) EV/T of US$475 for 3mtpa steel plant.

BUZZING STOCK :: Suven Life Sciences locked in 20% upper circuit


Get investors' consent for winding up schemes: SC to Franklin Templeton

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. READ MORE

Committed to engaging with Indian govt to bring Covid-19 vaccine: Pfizer

"Right now we are in discussions with many governments around the world and remain committed to engaging with the Government of India and explore opportunities to make this vaccine available for use in the country," a Pfizer spokesperson said in a statement.
 
Pfizer is committed to ensuring everyone has the opportunity to have access to the vaccine,and is working closely with governments, it added. READ MORE

Godrej Properties, DLF, Sobha: What lies ahead for realty stocks?

NIFTY REALTY INDEX: A strong move above the 200-weekly moving average (WMA) suggests a firm upward sentiment. This move is supported by market participants with volumes witnessing a rising trend. The Moving Average Convergence Divergence (MACD) has sustained above the zero line indicating an upside direction with momentum staying in the bulls' favour. The trend is heading in the direction of 300 levels with a closing basis support of 270. READ MORE  


NEWS ALERT :: UltraTech Cement approves increasing the company's capacity by 12.8 mtpa


IPO ALERT :: Burger King India IPO subscribed over 6x till 2:15 pm on Day 2


Optimistic about revival in Q3, says FinMin in monthly economic review

The finance ministry’s Department of Economic Affairs (DEA) in its monthly economic review for November said, "The GDP contraction of 7.5 per cent in second quarter underlies a quarter-on-quarter surge in GDP growth of 23 per cent. This V-shaped recovery, evident at the half-way stage of FY21, reflects the resilience and robustness of the Indian economy.” READ MORE

Currency Check :: Dollar Index falls to 90.85, lowest since April 2018

>> Rupee hit an intra-day high of 73.68/$


Steel Authority of India hits 52-week high; stock zooms 55% in one month

The Covid-19 pandemic outbreak and measures to curtail it has caused significant disturbances and slow down of economic activities. Consequently, the company's manufacturing operations had to be scaled down during Q1FY21. Following the resumption of operations during the later part of the first quarter, the company has operated at normal capacity in Q2FY21. READ MORE

RBI Policy Expectations :: Centrum Broking

>> Given, Oct headline inflation print of 7.6% is the last inflation print available before the upcoming scheduled MPC review and since it continues to remain above MPC’s tolerance limit, RBI is most likely to opt for a status quo. easing. We expect 25-50bps of rate cuts in 1HCY21 as inflation eases.

>> We expect RBI MPC members to once again highlight the ongoing nature of this elevated inflation so far and its trajectory going forward by putting forth the CPI projections for the rest of FY21.

>> RBI is also most likely to acknowledge their intent of keeping liquidity in surplus and by maintaining the accommodative monetary stance, RBI will keep hope alive for a rate cut as & when needed.

What will markets track? 

>> From this upcoming policy, markets would be keenly observing RBI’s assessment/projections for the FY21 GDP growth.

>> While revising the FY21 GDP projections upwards, we believe that the MPC members are not only likely to take into consideration, the nascent signs of significant recovery underway as eulogized by HFIs, but they are also likely to take cautious note of the fragile nature of this recovery along with the underlying downside risks associated with the recovery in the form of incipient second wave of Covid infectionsseen recently coupled with the re-imposition of restrictions in various regions and the durability of demand recovery.

BSE Smallcap index gains 0.75%


Top gainers on the BSE at this hour


MARKET AT CLOSE | Gainers and losers on the S&P BSE Sensex


RBI Policy Expectations :: Edelweiss Research

>> The RBI had refrained from cutting policy rates at its previous monetary policy meeting, citing discomfort on elevated inflation.

>> Inflation has been sticky since and a much-anticipated reversal in food spike has eluded so far. We, hence, expect the RBI to maintain the status quo on rates at its forthcoming policy review on 4 th December, as it awaits a more sizeable and durable fall in headline inflation.

>> A potential pause on rates, though, is not necessarily the end of the rate-cutting cycle. We do expect inflation to ease towards 5% or below over the next few months, and this should facilitate 25–50bps of rate cuts.

>> The RBI itself has hinted that there is room for further rate cuts once inflation eases.

BROKERAGE VIEW | Nirmal Bang Securities on Phoenix Mills

RATING: ACCUMULATE |  TARGET PRICE: Rs 753 

We revise our TP to Rs 753 (earlier Rs 623). We have reviewed some of our estimates and have consequently revised our NAV marginally from Rs 1,29,848 million to Rs 1,36,084 million. Further, with the reopening of malls and gradual improvement in business, we have an increasing comfort about improvement in the company’s business. Consequently, we have reduced our discount to NAV from 20% to 5% of NAV to arrive at our new target price (TP) of Rs 753 (earlier Rs 623). The TP is based on Sept FY23E SOTP valuation. We have valued Retail, Residential and Office Properties of PML based on Sept FY23E NAV while the Hotel business has been valued through the discounted cash flow (DCF) method. We maintain Accumulate rating on the stock.

RBI Policy Expectations :: Emkay Global Financial Services

>> The upcoming RBI MPC policy will likely be a damp squib on conventional policy actions with inflation sticky at over 7% in the near term.

>> While growth concerns and sub-optimal fiscal response may keep MPC’s stance accommodative, the inflation trajectory hints that the bar for further conventional rate cuts becomes high for the rest of FY21.

>> We expect the RBI to raise its inflation and growth forecasts in the upcoming policy.

>> The immediate policy focus, however, will likely be on liquidity management amid current macro, FX and money market conundrums.

>> We watch out for possible policy tweaks to create an effective floor for the money market in the form of (1) introducing Standing Deposit Facility, also involving non-banks participation, (2) part-reversal in the past CRR cut, and (3) variable term reverse repos.

BUZZING STOCK :: Blue Star leaps over 6% on report co may bag order to deliver Covid-19 vaccine storage units


Radhakishan Damani, others sell 0.79% stake in Tata's Trent for Rs 202 cr

Ace investor Radhakishan Damani, promoter of Avenue Supermarts, and persons acting in concert (PACs), have trimmed stake in Tata group's retail arm Trent by selling over 28.22 lakh shares in the open market for an estimated sum of over Rs 202 crore. As per regulatory filing, Radhakishan Damani, Kirandevi G Damani, Jyoti Kabra, Bright Star Investments Pvt Ltd, Damani Estates and Finance Pvt Ltd, Derive Investments and Derive Trading and Resorts Pvt Ltd, sold 28,22,516 shares in the open market. READ MORE

NEWS ALERT :: Bank of India to purchase AXA IM's entire 49% equity shares in BOl AXA Investment Managers

>> BoI to also purchase AXA IM's entire 49% equity shares in BOI AXA Trustee Services Private Limited

Click here for further details


Maruti extends gains, up over 6%


BS Podcast | Here's what to expect from the RBI's monetary policy meeting

The MPC is meeting at a time when the Indian economy is trying hard to come out of stagflation, i.e., a situation where the economy is experiencing a simultaneous increase in inflation and stagnation of economic output. LISTEN TO THE PODCAST HERE

MARKET CHECK | Sensex trades flat


BUZZING STOCK | Trident jumps 16%


Vakrangee slips 10%


SBI Cards records sharpest intra-day gain in over 4 months, surges 5%

In the past three months, the stock of SBI Cards has underperformed the market by gaining less than 1 per cent after reporting a lower-than-expected July-September quarter (Q2FY21) earnings, due to a rise in provisions as non performing assets (NPAs) spiked. In comparison, the S&P BSE Sensex rallied 15 per cent during the same period. READ MORE

BROKERAGE VIEW | Anand Rathi Shares on Infrastructure sector

The returning execution efficiency/profitability notwithstanding, the yet continuing impact of the Covid-triggered disruption is a manifestation of realigned priorities, and cost checks put in place. The continuing healthy awarding, recent additional relief measures under Atmanirbhar Bharat 3.0 and steps taken to make the hybrid annuity model more conducive indicate that policy-makers retain focus on the sector and are quick to facilitate and address any disruptions. These efforts are appreciated and augur well for better times ahead. Consequently, we retain our long-term constructive view but still chose to remain selective.

Top picks: KNR Constructions, PNC Infratech and Ahluwalia Contracts. With strong balance sheets, ample assurance and execution abilities, they are likely to emerge from this stronger.

QIP mechanism: Sebi proposes scrapping segregated offering of NCD, warrants

Under the current framework, an investor can either subscribe to the combined offering of NCD instrument with warrants or to the individual securities (that is, either NCD or warrants). It depends upon the type of offering made by the issuer -- whether the issuer has offered staple or segregated product. READ MORE

Matrimony.com rallies 10% after block deals; stock hits fresh 52-week high

Matrimony.com is one of the leading consumer internet companies in India. It is a signature consumer internet conglomerate, managing marquee brands such as BharatMatrimony, CommunityMatrimony and EliteMatrimony. The Company delivers matchmaking and marriage related services to users in India and the Indian diaspora. READ MORE

CLSA sees 46% upside in SBI stock, raises target price to Rs 360

Shares of State Bank of India (SBI) advanced as much as 4.8 per cent to Rs 259 on the BSE on Thursday after foreign brokerage CLSA increased its target price on the stock to Rs 360 from Rs 330. The target price reflects 46 per cent upside from the current market price. In its report dated December 2, CLSA noted that stock of the state-owned lender still holds value despite rallying 29 per cent in the past four months relative to the benchmark S&P BSE Sensex’s around 19 per cent rally. READ MORE

Tech view: Voda Idea hikes tariffs; what does it mean for telecom stocks?

BSE Telecom Index: This index needs to strongly uphold the positive sentiment above the 200-DMA placed at 1,182, along with the immediate resistance of 1,220 levels. After conquering the 1,220 level, the upside bias may see a rally in the direction of 1,270 and 1,310 levels. The overall trend is bullish till the index defends 1,130 levels. The Relative Strength Index (RSI) has a support of 55 values. Until this value is not breached, the upward breakout above 65 may see the index scaling higher levels. READ MORE 


HDFC Bank dips 1% as RBI asks to halt digital launches, new credit cards

Shares of HDFC Bank dipped 1.3 per cent to Rs 1,388.20 on the BSE on Thursday after the Reserve Bank of India (RBI) ordered the bank to halt digital launches and new credit cards with regards to incidents of outages in internet banking/ mobile banking/ payment utilities of the bank over the past two years. The RBI also took note of the recent outage in the bank’s internet banking and payment system on November 21, 2020 due to a power failure in the primary data centre. READ MORE

Sebi's proposed delisting norms to boost re-listings, say experts

The market regulator has proposed to reduce the cooling off period between delisting and relisting from five years to three years. “Sebi has acknowledged that a few delisting can take place to pursue strategic initiatives and accordingly have reduced the relisting period to three years, which will encourage relisting for some of the delisted companies,” said Ravi Dubey, Partner, IndusLaw. READ MORE

Bharti Infratel extends gain after Airtel hikes stake through open market

Shares of Bharti Infratel moved higher by 3 per cent to Rs 232, recovering nearly 5 per cent from the day’s low of Rs 222 on the BSE on Thursday after Bharti Airtel, the promoter of the company, hiked stake in the company through its subsidiary via open market. The stock of the company, engaged in activities of providing telecom tower infrastructure sharing for telecommunication services, has rallied 7 per cent in the past two trading days. READ MORE

NEWS ALERT :: Lottery, Gambling to attract GST , orders Supreme Court


HDFC Bank slips 1%


NEWS ALERT | RBI imposes strictures on HDFC Bank after recent outages on internet banking, mobile banking


BROKERAGE VIEW | JM Financial Services on Sun Pharma

RATING: BUY | TARGET PRICE: Rs 770 

Sun has underperformed the Nifty Pharma Index by c. 24% YTD. At c.18x FY22E EPS, the stock is currently trading at c. 20% discount to its historical trading range. With the sectoral trading ranges now having moved to 1SD above the 10-year mean and structural overhangs including the generic drug price-fixing lawsuit & the SEBI probe now getting behind the company, we see a strong case for a re-rating. Given multiple earnings drivers and strong valuation comfort, Sun remains one of our top picks in the sector.

Maruti Suzuki trades higher for the 4th straight day, hits over 11-mth high

Shares of Maruti Suzuki (India) (MSIL) hit an over 11-month high of Rs 7,510, up 4.3 per cent on the BSE on Thursday. The stock of the passenger vehicles (PV) bellwether was trading higher for the fourth straight day, rising 7 per cent during the period, even as the company’s volumes in November rose at a modest pace by 1.1 per cent to 153,223 units, dragged by a 5 per cent decline in the core mini and compact portfolio. READ MORE

NEWS ALERT :: Services PMI index for November slips to 53.7 from 54.1 in October

The seasonally adjusted India Services Business Activity Index posted above the critical 50.0 mark that separates growth from contraction for the second month in a row during November. Despite falling from 54.1 in October to 53.7, the latest reading was still indicative of a solid pace of expansion. Companies that signalled output growth commented on better demand conditions and a relaxation of COVID-19 restrictions.

Growth or stability, the dilemma for investors looking at Bajaj Finance

It's not often that a company gives a cautious outlook and yet, its stock price scales a new high. The case in point is Bajaj Finance and with the stock doubling in six months, and nearing the Rs 5,000 a share zone, its valuations are once again in the expensive territory of 6.5x FY22 estimated book. READ MORE

Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
HDFC LIFE INSUR. 646.95 1.61
VODAFONE IDEA 10.01 1.01
TRIDENT 8.75 6.71
B H E L 34.60 2.37
VAKRANGEE 47.25 -7.89
» More on Most Active Volume

NEWS ALERT :: RBI Policy announcement at 10 am on Friday

Rupee opening

Rupee opens flat at 73.81/$ vs Wednesday's close of 73.80 against the US dollar

NEWS ALERT :: Nava Bharat Ventures enters into conversion agreement with Tata Steel arm

>> Nava Bharat Ventures enters into conversion agreement with Tata Steel Mining till Mar 2025 for conversion of high carbon ferro chrome.


Tata Chemicals surges 13% in two days after Tata Sons hikes stake

On Wednesday, December 2, 2020, Tata Sons purchased 1.8 million equity shares, representing 0.71 per cent equity, of Tata Chemicals at price of Rs 420.92 per share on the NSE via bulk deal, the exchange data shows. The names of the sellers were not ascertained immediately. READ MORE

Three technical indicators that will help you make timely exit from a stock

The adage “timing is everything” holds extreme importance in the stock market. It relates to right entry, exit, and opportunity. Failing to time any of the three can result in devastating outcomes for a trader.
 
The most significant of them all is definitely the 'exit', simply because failing to exit a stock at the right time can mean the instrument or stock getting stuck in one's portfolio for years, eroding wealth gradually. READ MORE

S&P BSE MidCap index outruns benchmarks


BUZZING STOCK :: Balmer Lawrie surges over 8%


Apollo Hospitals gains 2%


InterGlobe Aviation gains around 2%

>> IndiGo on Wednesday said it has reached 70 per cent of its pre-Covid capacity and is operating 1,000 daily international and domestic flights. India resumed domestic passenger flights on May 25 after a gap of two months due to the coronavirus-triggered lockdown.


Wipro trades higher

>> Wipro has won a multi-year contract from Verifone, a global leader in payments and commerce solutions, to drive agility across its cloud services offerings.


HDFC Life up 1% post block deal

>> According to media reports, Standard Life is looking to sell up to 2.78 crore shares of HDFC Life through a block deal today to raise up to Rs 1,770 crore The sale price has been fixed at Rs 605-636.50 apiece, which is up to 5 per cent discount to Wednesday’s closing price.


Sectoral trends at Open


Sensex Heatmap at Open


Opening Bell :: Nifty hits fresh record high


Opening Bell :: Sensex at fresh record


Commodity Heatmap


Currency Outlook :: Reliance Securities

>> The Indian rupee could start on a slightly stronger note against the US dollar. TherRupee could likely open around 73.68-73.70 per dollar compared with 73.80 at close on Wednesday.

>> Weak US dollar and improved risk appetite in the region could lend support.

>> However, RBI’s presence in the market could keep appreciation bias limited.

>> Meanwhile, NDF is at 73.62/73.71 this Thursday morning vs a close of 73.68 on Tuesday.

>> Technically, USDINR Spot pair has bounced back from 73.44 levels, its 50-Daily Moving Average and could resume its upside momentum. However Bearish sentiment could continue below 73.75 levels.

>> Support is at 73.50-73.19 levels. Resistance is at 73.85-74.10 levels. USDINR Spot pair is expected to trade in a range of 73.50-74.10 levels.

Top gainers and losers on the S&P BSE Sensex at Pre-open


Markets at Pre-open


Markets at Pre-open


BROKERAGE VIEW :: CLSA on SBI

Maintains BUY | Target: Rs 360
 
>> Lift our price target from `330 to `360/share

>> SBI has moved up 25% since our Deep value report

>> Expect SBI’s valuation to continue to mean revert

BROKERAGE VIEW :: BofA Sec on Bharti Airtel

Maintains BUY | Target: Rs 640
 
>> Bharti Airtel increases stake in Bharti Infratel

>> Special dividend would largely help partially funding this

BROKERAGE VIEW :: Citi on RBL Bank

Maintains BUY | Target: Rs 275
 
>> Credit card trends improving

>> Restructuring requests remain low

>> RBL Remain selective towards lending

>> Lower interest reversal on NPA should lead to better NIM

>> Bank expects to reach exit RoA of 1.5% by Q4'22

Stocks to watch

HDFC Life: According to media reports, Standard Life is looking to sell up to 2.78 crore shares of HDFC Life through a block deal today to raise up to Rs 1,770 crore The sale price has been fixed at Rs 605-636.50 apiece, which is up to 5 per cent discount to Wednesday’s closing price.
 
Wipro has won a multi-year contract from Verifone, a global leader in payments and commerce solutions, to drive agility across its cloud services offerings.
 
IT stocks may hog the limelight today as a federal judge in California has blocked the Trump administration from implementing rules designed to limit participation in the H-1B work visa program, rejecting claims that the measures were necessary to protect American workers amid the Covid-19 pandemic. READ MORE  

 

BROKERAGE VIEW :: Antique Broking on Mid-tier IT stocks

>> Mid-tier IT companies have seen strong performance since the recent lows of March, outperforming IT large caps by 30%. Most of the quality mid-caps have more than doubled in the past six months. Although we continue to believe most mid-caps revenue will grow in double digits in near to medium term; expansion in valuation multiple to +2SD for many tier-2 companies makes us take selective approach. In addition, the order book grew from flat to low double digits year-on-year, but it's not strong in line with what trends we are hearing otherwise. Mindtree reported order book of USD303m in Q2FY21 which was flat compared to same quarter last year. The large deal wins for L&T Infotech was better than last quarter, but below expectations. Coforge reported decent order book with executable orders over the next 12-months, at USD489m, up 21% year-on-year.


BROKERAGE VIEW :: Kotak Institutional Equities on Metals

>> Aluminum beverage cans have shown demand resilience during Covid-19 as in past crises. Aluminum’s infinite recyclability makes it the most sustainable alternative to plastic – the shift from plastics and a growing market offer a structural impetus to can demand. Supply remains constrained and should keep margins of can sheet producers elevated. Secular growth drivers and a high ESG score accord market leader Novelis a deserving premium multiple. We raise our Fair Value for Hindalco to Rs330 (from Rs300).

ALERT :: SGX Nifty tops 13,200-maark

>> At 8:48 am, the index was at 13,216, up 61 points.

BROKERAGE VIEW :: MayBank on Tech M

Target Price: Rs 1,030 | Reco: Buy
 
>> The management expects double digit revenue growth in the enterprise business and high single digit for the telecom one. EBIT margin is targeted at 15% for FY22E vs 11.6% in FY20. We maintain BUY with 3% higher TP of INR1,030, valued at 16.5x FY22E P/E (16x earlier), still at +1SD above its 10-year mean to factor in the improving demand environment.

>> Per management, the 5G opportunity is large with the services pie in the telecom sector capex varying from 20% to 60% in different segments. The CAGR over 2020-25E varies from 10-70%.This includes opportunities from open 5G networks, network on the cloud, digitisation of operations and enterprise network modernisation.

>> We believe TECHM offers a good opportunity to play both the digitisation and 5G opportunities. We forecast USD revenue and EPS to increase 11.1%/8.2% and 20%/12% for FY22/23. We believe valuation is inexpensive at 17.5x/14.6x FY21-22E P/E and at a discount to peers.

BROKERAGE VIEW :: Antique Broking on CESC

Target Price: Rs 815 | Reco: Buy

>>With regulated Kolkata operations driving the show, we forecast moderate revenue/EBITDA/ net profit growth till FY23E. The focus remains on WBERC regulatory order in hiking tariffs, which will improve cash collection. The other catalysts remain winning new distribution franchisees and sweating of renewable assets. Using sum-of-the-parts, we initiate the company with a TP of INR815 and recommend a BUY. Risks: (1) Adverse or delay in WBERC regulatory order; (2) capital allocation to projects earning lower equity IRR.

BROKERAGE VIEW :: IIFL Securities on Phoenix Mills

Target Price: Rs 820 | Reco: Buy

>> Phoenix Mills (PHNX) has signed a non-binding term sheet with GIC, to sell 26% stake (up to 35% within 12months) in completed & stabilised malls (PMC Mumbai & Pune) and in Mumbai offices, valued at an attractive FY20 cap rate of ~6.6%. The equity flow is expected to be >Rs10bn, which could be utilised for further acquisitions, while the new PHNX-GIC platform itself may look at a REIT listing in the next 3-5 years. PHNX also released encouraging consumption trends, averaging at ~87% of pre-Covid levels for November (driven by festive demand in 1H) and ~73% in the last week of the month. While tenant re-negotiations (for >90%) and pick-up in consumption offer comfort on earnings returning to normalcy by FY22, the potential deal with GIC provides comfort on valuations; we re-iterate BUY.

BROKERAGE VIEW :: Jefferies on HDFC LIfe

Target Price: Rs 800 | Reco: Buy

>> Management highlighted that HDFC Life was early in identifying need to transition from purely a manufacturer of insurance products to solving customers' needs. It believes that most of the new-age digital platforms tend to disrupt parts of the business/ processes, but incumbents need to take a consolidated view.

>> Despite the progress in digital services and platforms, management believes that insurance will remain a push-product for a majority of clients.

>> We see 18% Cagr in premiums over FY20-23 to drive 17% Cagr in VNB and ROEV of 18% in FY22. We rate stock as Buy with a price target of Rs800 on Sep-22 PEV of 5.0x.

Trading strategies for gold and nickel by Tradebulls Securities

Gold market is rebounding as it had been in oversold territory in the month of November. Vaccines are shifting expectations that the global economy will see a faster-than-expected recovery from the devastating pandemic. Gold saw its worst month since November 2016 and equity markets recorded their best monthly gains since 1987. READ MORE

Nifty outlook by Gaurav Garg

As per weekly option data, heavy put writing on lower strikes, ranging from 12,800 to 13,050, is witnessed which shows Nifty might face support in the zone of 13,000 as maximum put OI is placed here for the weekly expiry. We can witness short-covering move along with addition of fresh position only if Nifty breaches 13.200. Therefore, traders should try to create long position keeping close eye on 13,000. READ MORE

Rupee check

Source: Bloomberg


Oil drops as OPEC+ resume talks on output cut extension after impasse

>> Oil prices fell on Thursday as producers including Saudi Arabia and Russia locked horns over the need to extend record production cuts set in place in the first wave of the Covid-19 pandemic.

>> Brent crude was down 15 cents, or 0.3%, at $48.10 a barrel, after gaining 1.8% on Wednesday. U.S. oil was down 17 cents, or 0.4%, at $45.11 a barrel, having ended 1.6% higher the previous session.

(Source: Reuters)

SGX Nifty update

>> At 8:18 am, the index was at 13,182 levels, up 27 points or 0.21 per cent.

Asian stocks mixed

Source: Reuters


S&P 500 hits record as investors await fiscal deal

Source: Reuters


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