The Nifty50 index, on the other hand, ended at 12,749, up 118 points, or 0.93 per cent.
The domestic equity market ended at yet another record peak on Wednesday amid broad-based buying, thus settling in the green for the eighth session in a row.
The S&P BSE Sensex rallied 316 points, or 0.73 per cent to settle at 43,594 levels. During the session, the index hit an intra-day high and low of 43,708 and 42,970 levels, respectively. The Nifty50 index, on the other hand, ended at 12,749, up 118 points, or 0.93 per cent. India VIX today gained over 2 per cent to 22 levels.
Infosys, HDFC, Axis Bank, and ITC were the major contributors to the Sensex's gain today while Reliance Industries (RIL) emerged as the biggest drag.
In the broader market, the S&P BSE SmallCap index gained 0.34 per cent to end at 15,283 levels while the S&P BSE MidCap index rallied 0.77 per cent to 15,663 levels.
Sectorally, barring Nifty PSU Bank and Nifty Media, all other indices advanced. Nifty Pharma ended at 11,570, up 400 points, or 3.59 per cent.
Stocks gained and bonds dropped on Wednesday as news of a working COVID-19 vaccine outweighed worries over surging infections, fuelling rotation towards cut-price losers from the coronavirus pandemic such as travel stocks.
The broad Euro STOXX 600 climbed 0.4 per cent, adding to a 5 per cent rally this week and adding to 0.1 per cent gains for Asia-Pacific shares outside Japan. Wall Street futures gauges also climbed, with S&P 500 futures up 0.3 per cent.
In commodities, oil prices climbed as hopes of an effective Covid-19 vaccine continued to bolster sentiment, while an industry report showed US crude inventories fell more than expected.
MARKET AT CLOSE | Gainers and losers on the BSE Sensex
NEWS ALERT | Cabinet approves Rs 2 lakh crore PLI Scheme for 10 manufacturing sectors.
>> PLI stands for Production-Linked Incentive
HIL surges 10%, hits 52-week high on strong September quarter numbers
Shares of HIL moved higher by 10 per cent to Rs 1,975, also its 52-week high on the BSE on Wednesday after the company reported 63 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 49 crore in September quarter (Q2FY21), on the back of the healthy volume and operational performance. The cement and cement products maker had a profit of Rs 30 crore in the year-ago quarter. READ MORE
India, China agree on a three-step disengagement plan from Pangong Tso
In a major development, the ongoing India-China border conflict may be resolved soon as the armies of the two countries have agreed for disengagement from parts of the Eastern Ladakh sector under which they would be moving back to their respective positions before April-May timeframe earlier this year. READ MORE
NEWS ALERT :: Union Minister Prakash Javdekar to brief media on Cabinet decisions at 3:00 PM today
>> Finance Minister Nirmala Sitharaman expected to be present too
BUZZING STOCK:: ITC at day's high
IPO ALERT :: Gland Pharma IPO subscribed 1.6x till 2:15 pm on Day 3
Steel stocks in focus; Tata Steel, SAIL rally 5% on healthy outlook
Shares of steel companies were in focus on Wednesday with Tata Steel and Steel Authority of India (SAIL) rallying 5 per cent on the BSE in the intra-day deals in an otherwise range-bound market on expectation of steady domestic steel production and consumption going forward. At 01:45 pm, the S&P BSE Metal index was up 2.3 per cent as compared to a 0.09 per cent decline in the S&P BSE Sensex. Hindustan Zinc, Hindalco Industries, JSW Steel, Vedanta and Jindal Steel and Power (JSPL) were up in the range of 1 per cent to 3 per cent. READ MORE
Bank of Baroda announces reduction in MCLR by 0.05% across all tenors
State-owned Bank of Baroda on Wednesday announced reduction in the marginal cost of funds based lending rate by 0.05 per cent across all tenors. "The bank has revised marginal cost of funds based lending rate (MCLR) with effect from November 12, 2020," Bank of Baroda said in a regulatory filing. The one-year tenor -- which is the benchmark for all consumer loans such as auto, retail, housing -- has been reduced to 7.45 per cent from 7.5 per cent. READ MORE
BSE Midcap index trades 0.5% higher
Rupee ends weaker at 74.31 per US dollar vs Tuesday's close of 74.18/$
NEWS ALERT | L&T bags orders in the range of Rs 1,000 cr-2,500 cr
ICICI Bank first pvt lender to surpass Rs 2 trn in mortgage loan portfolio
Private sector lender ICICI Bank on Wednesday said its mortgage loan portfolio has surpassed Rs 2 trillion, making it the first private sector bank in the country to achieve the feat. In 2016, the bank had crossed the Rs 1 trillion mark in its mortgage loan portfolio.
Furthermore, the bank said, mortgage loan disbursements during September was at an all-time high, and surpassed pre-Covid levels. Following a similar trend, the bank witnessed highest ever disbursements in the mortgage portfolio in October. It is both in terms of the number of customers who have reached out to the bank as well as in terms of disbursement in value terms that the lender has seen highest ever disbursement. READ MORE
Samvat 2077: Key stock market triggers that investors need to watch out
Recovery from Covid 19 shall be the key driver for the markets in Samvat 2077. Besides, improving economic indicators and earnings growth are expected to drive the markets LISTEN TO THE PODCAST
Q2 EARNINGS | Bharat Forge's net profit drops 71.3% YoY to Rs 70.2 crore
-- Tax expense of Rs 18.9 cr vs Rs 6.3 crore (YoY)
-- Other income of Rs 31.3 cr Vs Rs 49.5 cr (YoY).
-- Revenue dips 30% YoY to Rs 881.4 crore
Mayur Uniquoters gains 7% post Q2 results; board approves buyback
Shares of Mayur Uniquoters climbed 7 per cent to Rs 272 on the BSE on Wednesday after the company announced that it would be buying back 1.65 per cent of the share capital at Rs 400 per share. The company said it would buy shares amounting to Rs 30 crore, with promoters intending to participate in the buyback as well. The promoters held 61.48 per cent stake in the textiles company. The record date for the same is fixed as November 25, 2020. READ MORE
Growth, value stocks are largely pricing in vaccine hope, says UBS
Global growth and value stocks are pricing in the development of a vaccine to combat the Covid-19 pandemic, says a November 10 note by UBS. "Value stocks are now pricing in 60 – 70 per cent possibility of a vaccine, while Growth stocks are at around 85 per cent. US Growth stocks are pricing in the most hope of normalisation, while European and US Value stocks are pricing in the least, and therefore should have more upside potential," analysts at UBS wrote. READ MORE
Passenger vehicle wholesale up 14% to 3,10,294 units in October: SIAM
According to the latest data by the Society of Indian Automobile Manufacturers (SIAM), two-wheeler sales also rose 16.88 per cent to 20,53,814 units, compared with 17,57,180 units in the same month last year.
Motorcycle sales were at 13,82,749 units as against 11,16,886 units in October 2019, up 23.8 per cent. READ MORE
IndusInd Bank at day's low, down 7%
BROKERAGE VIEW | Nirmal Bang Securities on Gillette India
RATING: ACCUMULATE | TARGET PRICE: Rs 5,895
GILL have seen a sharper-than-expected recovery in 1QFY21. There is 3.5%/3.1%/1.1% upward revision in our FY21E/FY22E/FY23E EPS, largely led by the beat seen in 1QFY21 (June-ending). Going forward, we expect the company to deliver even better growth in rest of FY21 due to lower base, market recovery, service levels already coming back to pre-Covid levels in 1QFY21, product innovations and strong execution. We retain our Accumulate rating with a revised TP of Rs5,895 (Rs5,770 earlier) on September 2022 EPS (assigning a P/E multiple of 50x), implying an upside of 7% from the CMP.
BROKERAGE VIEW | Emkay Global on Consumer Durable companies
Better-than-expected demand recovery led to a revenue beat for most companies except for 4-5, while even companies that missed revenue estimates still posted EBITDA beat. The full benefits of cost reduction were visible across companies, while some of them recorded gross margin expansion as well. Our top high-conviction Buy-rated names continue to be Crompton and Dixon. We also like Havells, Voltas and Whirlpool due to their businesses, market share strengths and superior management execution capabilities, but their expensive valuations restrict us from rating them as Buy.
BROKERAGE VIEW | Prabhudas Lilladher on Mahindra & Mahindra
RATING: BUY | TARGET PRICE: Rs 728
We are positive on MM as 1) better rural sentiments should help drive FES and auto segments over FY21-23 and 2) continued focus on exiting non core/loss making business bode well for re-rating. We increase FY21/22/23 EPS by 16%/4%/1% and built in EBITDA/PAT CAGR of 12.6%/19% over FY21-23E. We maintain BUY with revised SoTP based price target of Rs728 (v/s Rs703). The revision in TP is primarily led by increase in subs value to Rs180 (v/s Rs152 earlier, unchaged at 40% hold-co).
BROKERAGE VIEW | Axis Securities on Maruti Suzuki India
RATING: BUY | TARGET PRICE: Rs 7,920
MSIL has maintained its strong financial risk profile with a net worth in excess of Rs 50K crs and liquidity of over Rs 37K crs as of FY2020. The company has a strong cash generating ability and negligible debt levels. Financial flexibility is further enhanced by largely unutilized bank lines of Rs 3K crs. Due to the strong liquidity, MSIL is able to provide financial support to its dealer and vendors to tide over the challenging business environment.
BROKERAGE VIEW | HDFC Securities on GAIL (India)
RATING: BUY | TARGET PRICE: Rs 129
Our BUY recommendation on GAIL with a price target of Rs129 is based on 15% CAGR expansion in gas transmission volume over FY21-23E to 137mmscmd on the back of (1) increase in domestic gas production, (2) increase in demand of RLNG, and (3) completion of major pipelines in the eastern and southern part of India. 2QFY21 EBITDA was 9% below our estimate owing to higher-than-expected operating expenses, offset by a 14% rise in revenue. However, APAT was 21% above our estimate due to higher- than-expected other income and lower-than-expected interest cost.
Divi's Lab, Aurobindo Pharma: Are pharma stocks losing their sheen? Read on
Nifty Pharma: The index is struggling to trade in the range of 50-day moving average (DMA) and 100-DMA placed at 11,600 and 11,180 levels. Neither it is decisively breaking out nor indicates any breakdown. That said, till the index holds above the 11,180 mark, the bullish bias should prevail. The overall scenario shows support at 11,000 mark, as per the weekly basis. And a major rally is expected above 12,000 mark. READ MORE
UltraTech Cement nears record high on healthy demand outlook
In the past two months, UltraTech Cement has outperformed the market by surging 23 per cent, as compared to an 11 per cent gain in the S&P BSE Sensex. At 11:55 am, UltraTech Cement was trading 1 per cent higher at Rs 4,758 on the BSE, as compared to a 0.43 per cent decline in the S&P BSE Sensex. READ MORE
Hindalco investors can expect more gains in second half: Analysts
With Hindalco’s US subsidiary Novelis reporting record profitability, the firm’s strong all-round domestic performance too impressed the Street. The operating performance was good despite consolidated net profit falling 60 per cent year-on-year (YoY), mainly due to one-offs.
Significant rebound in the aluminium and copper segments’ profitability helped by better product mix, demand improvement and rising metal prices point towards a better second half for Hindalco. READ MORE
ITC steps up play in Rs 11,000-cr chocolate market
Diversified conglomerate ITC is looking to grab a bigger bite of the Rs 11,000-crore chocolate segment in the country with over a dozen launches in the category for the festive season.
The company plans to play in the entire segment of the chocolate category including chocolates, chocolate cookies, wafers and spreads to give customers a differentiated experience and make a profitable business out of this segment for the cigarettes-to-biscuits maker. READ MORE
Infosys, PI Industries, ICICI Bank: Top picks of brokerages for Samvat 2077
Samvat 2076 marked a historical year for the equity markets during which they witnessed extreme volatility and pessimism, owing largely to the Covid-19 pandemic, only to later roar back from their March lows to scale fresh lifetime highs. As Samvat 2077 nears, analysts say that the overall structure of the Indian markets remains positive and with the economic activity recovering fast, more earnings upgrade cannot be ruled out. READ MORE
MARKET CHECK :: Sensex erases gains, slips over 100 pts
Play markets for medium-term, diversify across asset classes: Amit Khurana
The year 2020 will go down as one of the most unprecedented and volatile for all asset classes. The market recovery after a sharp fall earlier this year was led by a few select names and now we are witnessing this broadening to other sectors as well. We expect this to be the key theme for next year.
As things stand, factors are supportive of the uptrend – hence the markets hit new highs recently. How far the momentum will go will depend on how strong the liquidity flow sustains. We think it will. Also, it is important to be aware that such uptrends also bring along bouts of equally sharp corrections. READ FULL INTERVIEW HERE
VST Tillers surges 10% on robust September quarter results
Shares of VST Tillers Tractors advanced 10 per cent to Rs 1,938 on the BSE in the early morning deals on Wednesday after the company posted nearly five-fold year-on-year (YoY) jump in net profit at Rs 29.94 crore in September quarter (Q2FY21) on back of healthy revenue. The commercial vehicles company had clocked a profit of Rs 6.4 crore in Q2FY20 and Rs 17.1 crore in Q1FY21. READ MORE
Nifty Bank surpasses 29,000-mark
Trent gains 12%, YES Bank up 5% as stocks to be added to MSCI India index
MSCI Inc, a leading provider of research-based indexes and analytics, announced Tuesday the results of the November 2020 semi-annual index review for the MSCI Equity Indexes. MSCI Inc. will add 12 India stocks to its standard index and remove two as part of the semi-annual review of the world’s largest index compiler. All changes will be implemented as of the close of November 30, 2020, it said. READ MORE
Markets gone 'rogue' on coronavirus vaccine news face tough questions
After a frenzy of vaccine optimism lifted global stocks to a record and sent havens into a tailspin, some strategists said the moves may have gone too far and tough questions remain unanswered. News that the inoculation developed by Pfizer Inc. and BioNTech SE was more than 90 per cent effective in preventing Covid-19 infections sparked a surge of bets Monday on stocks such as cruise operators and airlines that wilted amid the pandemic. READ MORE
BROKERAGE VIEW | JM Financial on Motherson Sumi
RATING: BUY | TARGET PRICE: Rs 150
Major improvements at greenfield plants, which were implemented by the company during 1HCY20, have started to yield results with greenfield EBITDA margin now at 2% vs. (29%) in 1QFY21. Going ahead, improving profitability at greenfields and recovery in global auto sales are likely to drive earnings. We estimate 36% CAGR in consol. earnings over FY20-23E. Maintain BUY with a revised Sep’21 TP of Rs 150 (18x forward earnings). Severe impact from second wave of
lockdown in EU and EBITDA loss at greenfields are key risks.
Paul Hickin :: Crude oil glut likely to overshadow any OPEC+, US policy shifts
Record coronavirus cases, a new wave of lockdowns across Europe and a stagnant road use trend in the US have had oil forecasters scaling back their recovery scenarios. The major European economies have seen mobility drop to its lowest since mid-June, signaling a renewed collapse in gasoline and diesel demand. READ MORE
BROKERAGE VIEW | IDBI Capital on Exide Industries
RATING: BUY | TARGET PRICE: Rs 196
Exide Industries reported better than expected results as sales/EBITDA/net profit were higher than our forecasts by 11%/19%/27%. Net sales increased 5.5% YoY to Rs27.5 bn led by improvement in demand from replacement and UPS segments. EBITDA improved 6.8% YoY to Rs3,920 mn and EBITDA margin stood at 14.2%, a marginal expansion of 17bps YoY. However, sharp increases in interest and tax expenses led Exide’s net profit to fall by 3.6% YoY to Rs2,288 mn. We raise our FY21 sales/EBITDA/EPS estimates by 6%/11%/14% respectively given better than expected Q2FY21 results. We also raise our FY22 estimates by 4%/7%/9%. Our SOTP based target price (based on FY23 earnings) stands at Rs196 (Rs165 earlier). We upgrade the stock to a BUY from an ACCUMULATE.
Rupee opens lower at 74/23 per US dollar vs Tuesday's close of 74.18/$
Mahindra & Mahindra gains 3% on healthy operational performance in Q2
Shares of Mahindra & Mahindra (M&M) rose 3 per cent to Rs 640 on the BSE on Wednesday after the company reported healthy operational performance in the September quarter (Q2FY21). The stock of cars & utility vehicles company hit a 52-week high of Rs 666 on September 21, 2020. The company’s operating margin (OPM) improved 370 basis points to 17.8 per cent in Q2FY21 against 14.1 per cent in Q2FY20. READ MORE
Pharma stocks outperform
ALERT :: Nifty50's m-cap tops Rs 100 trillion-mark for the first time
NIFTY HITS HIGH OF 12,753
SENSEX HITS FRESH ALL-TIME HIGH OF 43,675.59
Aarti Industries slips around 3%
>> Aarti Industries reported a 4.96 per cent fall in consolidated net profit at Rs 140.24 crore.
Result Reaction | RITES trades in the red
>> RITES: Net profit of Rites declined 44.29% to Rs 129.57 crore in the quarter ended September 2020 as against Rs 232.57 crore during the previous quarter ended September 2019.
SBI gains 1.5% in early deals
>> State Bank of India (SBI) on Tuesday said its board of directors has approved to divest over 8.5 per cent in UTI Trustee Company.
Wipro trades flat with positive bias
>> Wipro announced that it has won a multi-year contract for software engineering services from ThoughtSpot. Headquartered in Sunnyvale, California, ThoughtSpot is a search and Artificial Intelligence-driven analytics platform that helps explore, analyse and share real-time business analytics data easily.
Bata India dips around a per cent post Q2 nos
>> Bata India on Tuesday reported a consolidated net loss of Rs 44.32 crore in the second quarter ended September 30 as it moved towards recovery from the coronavirus pandemic-induced disruptions. The company had posted a consolidated net profit of Rs 71.30 crore in the corresponding quarter last fiscal.
NMDC slides over 3%
Sectoral trends at Open
Sensex Heatmap at Open
Top gainers and losers on the S&P BSE Sensex at Pre-open
Markets at Pre-open
Markets at Pre-open
BROKERAGE VIEW :: HDFC Securities on Voltas
TP: Rs 775 | Reco: Add
Voltas reported a strong 2QFY21 in a challenging time. There is beat on revenue growth and margin for both UCP and EMPS. UCP delivered a growth of 14% YoY (11% volume growth for RAC) despite industry facing challenges (down by 59% in 1HFY21, 8-10% in 2Q) and higher-than-normal trade inventory. Market share gains continued for Voltas across RAC (26.8%, up 240bps YoY) and Inverter AC gained salience with 36% YoY growth, improving margins. We expect Voltas to continue fortifying its leadership in RAC, and margins to improve with better product mix. EMPS too saw positive growth (15% YoY) despite several execution challenges. EMPS margin is expected to improve sequentially, with EBIT margin reaching 5-6% in FY22. Volt-Beko is continuously receiving encouraging response from channel partners and distribution expansion, and own manufacturing should result in quicker success for the brand. We increase our EPS estimates by 3/6/6% for FY21/FY22/FY23. We value Voltas on an SoTP basis, arriving at an implied P/E of 34x (UCP/EPMS/EPS P/E at 40/15/12x, earlier 38/15/12x) and Volt-Beko P/S of 3x, earlier 2x) to derive a target price of Rs 775. Maintain ADD.
Stocks to watch today
MSCI India index changes: ACC, Adani Green, Apollo Hospitals, Balkrishna Industries, Ipca Lab, L&T Infotech, MRF, Muthoot Finance, PI industries, Trent, and YES Bank have been added to the index while Bosch and LIC Housing Finance have been removed. The changes will be effective December 1, 2020.
NMDC: The Board of NMDC has approved buyback of 13,12,43,809 equity shares of the company (representing 4.29 per cent of the total paid-up equity share capital of the company) at a price of Rs 105 per share for cash consideration not exceeding Rs 1,378.05 crore.
Earnings today: A total of 628 companies including Coal India, Aurobindo Pharma, and Indiabulls Housing Finance are scheduled to announce their quarterly results today. READ MORE
BROKERAGE VIEW :: MOFSL on M&M
CMP: Rs 620 | TP: Rs 800 (+29%) | Reco: Buy
>> Mahindra & Mahindra’s (MM) 2QFY21 earnings were driven by strong performance in the Tractor business and steady recovery in Autos. Further, it announced exit from the Aerospace business, which had losses of INR3-4b in FY20. While MM’s core business would recover faster, focus on tightening capital allocation could act as a re-rating catalyst. Hence, we see twin levers of EPS growth and re-rating.
>> We upgrade FY21/FY22E EPS by 8%/6.5% to reflect volume upgrade in Tractors as well as tighter cost control. MM is one of the few Auto stocks still trading at a good discount to LPA. Maintain Buy with TP of INR800.
'Midcaps, smallcaps set to outperform benchmarks in near-term'
Nifty rose for the seventh session on the trot, to close at 12,643 on Tuesday. BankNifty continued its recent outperformance over Nifty, rallying almost 22 per cent in last seven sessions. Benchmarks are now in uncharted territory with full momentum. Pattern target for Nifty is seen in the range of 12,800-13,000. Support for the Nifty is shifted up to 12,300 odd levels. At current levels, Midcap and smallcap stocks look more attractive than largecaps. READ MORE
Weekly stock picks by Ajit Mishra of Religare Broking
HDFC Life Insurance Company Limited
HDFC Life has been gradually inching higher, after spending nearly a month in consolidation range while holding strongly above the support zone of the long term moving (200 EMA) on the daily chart. It has formed a fresh buying pivot on the daily chart of late and looks upbeat to retest its record high in near future. We advise creating fresh long positions in the mentioned zone. READ MORE