F&O expiry: Sensex gains 432 pts, settles at 44,260; Nifty ends at 12,987

Topics Markets | stock market | SGX Nifty

India VIX, meanwhile, dropped nearly 13.5 per cent to 20 levels.
Staging a smart recovery, the domestic equity market ended around 1 per cent higher on Thursday, the last day of the futures and options (F&O) contracts for the November series, amid broad-based buying.

The S&P BSE Sensex surged 432 points, or 0.98 per cent to settle at 44,260 levels and the Nifty50 index gained 129 points, or 1 per cent to 12,987 levels. India VIX, meanwhile, dropped nearly 13.5 per cent to 20 levels. 

Sectorally, all the indices ended in the green with Nifty Metal index rising the most - up 3.85 per cent to 2,925 levels. 

Broader market, too, participated in the rally. The S&P BSE MidCap index jumped 0.94 per cent to 16,598 levels while the S&P BSE SmallCap index rose 0.71 per cent to 16,480 levels.

Global markets

European shares were mixed on Thursday and world shares held near all-time highs after a strong Asian session in which market euphoria around Covid-19 vaccines, Joe Biden’s US presidential election win and hopes for further stimulus outweighed worsening US data. 

In Asia, China’s main stock indexes ended higher, rebounding from two days of losses as gains in financial and consumer shares offset drops in health care, tech and new energy vehicle firms.

Oil prices rose for a fifth day on Thursday after a surprise fall in US crude inventories gave further legs to a rally driven by optimism that vaccines will end the coronavirus pandemic and revive demand for fuels. 

(With inputs from Reuters)

4:05 PM IST "Today, the market regained its momentum during the second half of the session, on the monthly derivative expiry day, led by a bounce in the banking sector. Investors are awaiting the release of Q2 GDP data due tomorrow. The market expects contraction on a YoY basis but an improvement on a QoQ basis, reflecting a recovery in economic activity. The recovery is expected to further rise in Q3, and the market optimism is also high with the news that vaccine will be available in early 2021."

3:43 PM IST

3:42 PM IST

3:36 PM IST The S&P BSE Sensex gained 432 points, or 0.98 per cent to settle at 44,260 while NSE's Nifty ended at 12,987, up 129 points, or 1 per cent.

3:26 PM IST

3:15 PM IST

3:06 PM IST RATING: BUY | TARGET PRICE: Rs 1,530  Astral Poly Technik’s (ASTRA) has made a big-bang entry into plastic storage tanks segment through acquisition of certain assets of Shree Prabhu Petrochemicals Pvt Ltd (SPPL) for Rs510mn. Considering the potential revenue and profitability generation from the said acquisition, we increase our FY22E revenue and PAT estimates by 2% and 1.5% respectively. While rolling over our valuations to FY23E, we expect ASTRA to report overall revenue and PAT CAGRs of 18.5% and 31.7%, respectively, over FY20-FY23E. With the recent spurt in stock price, we downgrade ASTRA to ADD from Buy with a revised SoTP-based target price of Rs1,530 (earlier: Rs1,345), implying a P/E multiple of 45x Sep’22E earnings.

3:05 PM IST JSW Steel gained 5 per cent to quote at Rs 354 and Tata Steel rallied 4 per cent to Rs 565 in their intra-day trade today while Steel Authority of India (SAIL) and Jindal Steel and Power (JSPL) were up 7 per cent and 6 per cent, respectively. At 02:37 pm, the S&P BSE Metal index, the top gainer among sectoral indices, was up 3 per cent as compared to a 0.51-per cent gain in the S&P BSE Sensex. READ MORE

2:54 PM IST COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%) VAKRANGEE 31.05 35.70 35.20 13.37 WOCKHARDT 383.05 434.10 434.10 13.33 ABB POWER PRODUC 961.50 1074.00 1060.00 10.24 TATA INV.CORPN. 851.00 959.00 931.85 9.50 Click here for the full list

2:53 PM IST The mining giant started approaching the investors to discuss possible debt extensions after the company’s failed attempt to delist its India unit, Vedanta Ltd., people familiar with the matter said.   The company’s $670 million of bonds due June next year, which are among notes under discussion with holders, slumped as much as 7.7 cents after the news. That left them set for the sharpest daily drop in more than six weeks, according to prices compiled by Bloomberg. READ MORE

2:43 PM IST Shares of Dixon Technologies (India) rose 4 per cent and hit a new high of Rs 11,325 on the BSE on Thursday. The stock was trading higher for the fifth straight day. In the past one week, the consumer electronics company's stock has rallied 12 per cent, against 1 per cent rise in the S&P BSE Sensex. It zoomed 291 per cent from its 52-week low of Rs 2,900, touched on March 24, 2020. READ MORE

2:33 PM IST

LIVE UPDATES

MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services

"Today, the market regained its momentum during the second half of the session, on the monthly derivative expiry day, led by a bounce in the banking sector. Investors are awaiting the release of Q2 GDP data due tomorrow. The market expects contraction on a YoY basis but an improvement on a QoQ basis, reflecting a recovery in economic activity. The recovery is expected to further rise in Q3, and the market optimism is also high with the news that vaccine will be available in early 2021."

Nifty Metal surges nearly 4%


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


CLOSING BELL

The S&P BSE Sensex gained 432 points, or 0.98 per cent to settle at 44,260 while NSE's Nifty ended at 12,987, up 129 points, or 1 per cent.

MARKET CHECK


Top losers on the BSE at this hour


BROKERAGE VIEW | ICICI Securities on Astral Poly Technik

RATING: BUY | TARGET PRICE: Rs 1,530 

Astral Poly Technik’s (ASTRA) has made a big-bang entry into plastic storage tanks segment through acquisition of certain assets of Shree Prabhu Petrochemicals Pvt Ltd (SPPL) for Rs510mn. Considering the potential revenue and profitability generation from the said acquisition, we increase our FY22E revenue and PAT estimates by 2% and 1.5% respectively. While rolling over our valuations to FY23E, we expect ASTRA to report overall revenue and PAT CAGRs of 18.5% and 31.7%, respectively, over FY20-FY23E. With the recent spurt in stock price, we downgrade ASTRA to ADD from Buy with a revised SoTP-based target price of Rs1,530 (earlier: Rs1,345), implying a P/E multiple of 45x Sep’22E earnings.

Steel stocks extend rally; JSW Steel, Tata Steel hit fresh 52-week highs

JSW Steel gained 5 per cent to quote at Rs 354 and Tata Steel rallied 4 per cent to Rs 565 in their intra-day trade today while Steel Authority of India (SAIL) and Jindal Steel and Power (JSPL) were up 7 per cent and 6 per cent, respectively. At 02:37 pm, the S&P BSE Metal index, the top gainer among sectoral indices, was up 3 per cent as compared to a 0.51-per cent gain in the S&P BSE Sensex. READ MORE

Recovery from intra-day lows in today's session

COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%)
VAKRANGEE 31.05 35.70 35.20 13.37
WOCKHARDT 383.05 434.10 434.10 13.33
ABB POWER PRODUC 961.50 1074.00 1060.00 10.24
TATA INV.CORPN. 851.00 959.00 931.85 9.50
Click here for the full list

Vedanta Resources under pressure, sounds out bondholders on debt extension

The mining giant started approaching the investors to discuss possible debt extensions after the company’s failed attempt to delist its India unit, Vedanta Ltd., people familiar with the matter said.
 
The company’s $670 million of bonds due June next year, which are among notes under discussion with holders, slumped as much as 7.7 cents after the news. That left them set for the sharpest daily drop in more than six weeks, according to prices compiled by Bloomberg. READ MORE

Dixon Technologies hits new high; stock zooms 290% from March low

Shares of Dixon Technologies (India) rose 4 per cent and hit a new high of Rs 11,325 on the BSE on Thursday. The stock was trading higher for the fifth straight day. In the past one week, the consumer electronics company's stock has rallied 12 per cent, against 1 per cent rise in the S&P BSE Sensex. It zoomed 291 per cent from its 52-week low of Rs 2,900, touched on March 24, 2020. READ MORE

Sector check at this hour


India's GDP likely to fall most among 24 major economies, shows data

The National Statistical Office will release the official estimate of India’s Q2 GDP numbers, on Friday. Forecasts for the much-awaited figure range from a contraction of 7.8 per cent by the Bank of America, to a decline of 12.7 per cent by the National Council of Applied Economic Research (NCAER), with the mean being a 10.3 per cent fall in real GDP. READ MORE

BROKERAGE VIEW | Anand Rathi Shares on Healthcare stocks

We continue to be positive on companies which have a strong domestic business like Torrent Pharma (strong chronic portfolio, focus on productivity improvement to boost margins), Ajanta Pharma (rebound in India sales to improve earnings quality) and CRAMS companies like Suven Pharma (strong relation with innovators to drive 49% PAT growth in H2).

Investment tips by Shyam Sekhar

Rushil Decor hits 52-week high; zooms 64% in 3 days on heavy volumes

Shares of Rushil Décor were on a roll and hit a 52-week high of Rs 147, up 18 per cent on the BSE in the intra-day trade, on Thursday on the back of heavy volumes. Stock of the forest products firm has zoomed 64 per cent in the past three trading days in an otherwise volatile sessions. The stock has surpassed its previous high of Rs 139.2 touched on November 26, 2019. READ MORE

Govt to infuse Rs 2K cr in NIIF debt fund: Time to invest in infra stocks?

The government on Wednesday announced it will infuse Rs 2,000 crore as equity in a debt platform of the National Investment and Infrastructure Fund (NIIF) in the current financial year. This is part of the Rs 6,000 crore announced by Finance Minister Nirmala Sitharaman under a stimulus package earlier this month. According to a report by Business Standard, over the next five years of the national infrastructure pipeline, the debt financing platform can potentially support the construction of infrastructure projects worth Rs 1 trillion. READ MORE

BROKERAGE VIEW :: Nirmal Bang on Financials

>> In the last 2 months, the Bank Nifty is up ~40%. Over the same period, the stocks in our coverage (ex-life insurance) are up 8-73% without any significant change in fundamentals, except for the positive commentary on improving collections and slightly better growth outlook. In addition, the positive news flow around Covid-19 vaccines has contributed to the recent rally. While we are no experts on the subject of vaccines in any manner, we do believe that the rally (in financials) more than captures the near-to-medium term fundamentals.

>> Managements across banks have guided for an increase in NPAs in 2HFY21. From a business standpoint, we continue to remain positive on the banking sector with a preference for large cap stocks like HDFC Bank, ICICI Bank and Kotak Mahindra Bank but given the current valuations (post run-up in stock prices), we are unable to justify a BUY case on some of our top ideas.

>> Hence, we downgrade our ratings on the banking sector stocks. We believe that current valuations make banking stocks more vulnerable to a correction due to negative news flow. If and when that happens, we think it will be a more opportune time to BUY. Further, as and when we move our valuation basis to FY23E (from 1HFY23E currently), we may see materially higher upside on some of our top picks.

BROKERAGE VIEW :: Macquarie on Pharma sector

>> On the back of a superlative 1QFY21, listed Indian companies reported a strong 19% YoY API topline growth in 2QFY21.

>> With the bulk of 2Q growth driven by higher volumes on the back of structural tailwinds, most companies are sanguine about their API outlook.

>> Within API companies, pure-play suppliers with a long-term focus and a strong regulatory track record like Divi’s and Solara are the best plays.

Stocks that hit 52-week high on BSE today

COMPANY PRICE(rs) 52 WK HIGH CHG(%)
ADANI PORTS 404.15 409.20 1.34
CHAMBAL FERT. 194.40 195.50 2.45
DIXON TECHNOLOG. 11154.85 11220.00 2.30
EID PARRY 337.35 342.60 3.24
GUJARAT GAS 344.00 347.80 1.79
» More on 52 Week High

NEWS ALERT :: India extends ban on scheduled International commercial passenger flights until December 31

MARKET CHECK :: Sensex recovers, reclaims 44,000-mark in intra-day trade


Bitcoin price drops more than $1,000 in Asian trade

Bitcoin hiccoughed in Asian trading on Thursday to at one point stand more than 6% down on the day after failing to make record highs. Bitcoin, the world's biggest and best-known crypto-currency, was last trading around $17,700, having lost more than $1,000 since its previous close. "With very high volumes on spot but also on leveraged markets, it's not surprising that after failing to hit the all-time highs, there would be this sort of rapid correction," said Justin d'Anethan sales manager at digital asset company Diginex. READ MORE

BROKERAGE VIEW | Nirmal Bang Securities on banking and financial sector

From a business standpoint, we continue to remain positive on the banking sector with a preference for large cap stocks like HDFC Bank, ICICI Bank and Kotak Mahindra Bank but given the current valuations (post run-up in stock prices), we are unable to justify a BUY case on some of our top ideas. Hence, we downgrade our ratings on the banking sector stocks. We believe that current valuations make banking stocks more vulnerable to a correction due to negative news flow. If and when that happens, we think it will be a more opportune time to BUY. Further, as and when we move our valuation basis to FY23E (from 1HFY23E currently), we may see materially higher upside on some of our top picks. 

ICICI Lombard hits new high, enters the top 50 most-valued companies list

Shares of ICICI Lombard General Insurance Company moved higher by 6 per cent to its record high of Rs 1,464 on the BSE on Thursday, thereby entering the top 50 most valuable firms list. The stoock surpassed its previous high of Rs 1,439.90 touched on December 26, 2019. At 11:32 am, ICICI Lombard was trading 5 per cent higher at Rs 1,452 on the BSE, as compared to a 0.08 per cent decline in the S&P BSE Sensex. READ MORE

Top losers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
GE POWER 286.60 -4.99
FUTURE RETAIL 86.65 -4.99
FUTURE CONSUMER 8.66 -4.94
ADANI GREEN 1094.10 -4.42
UJJIVAN FIN.SER. 274.20 -3.76
» More on Top Losers

Feeling lucky? Bitcoiners who missed rally express relief and regret

Investing in cryptocurrencies is like playing roulette, some experts say, because no-one really understands what's happening.
 
Unlike stocks or bonds, where business trends or central bank decisions can affect prices, crypto values remain an enigma. READ MORE

MARKET CHECK :: Sensex extends fall


NEWS ALERT :: Episodes of misconduct in global markets led to pre-emptive safeguards in India: RBI Guv

-- RBI has taken several steps to liberalise, internationalise financial mkt
 
-- Markets with few participants tend to become close user clubs

NEWS ALERT :: Govt may earmark funds for Covid-19 vaccine in Budget 2021-22

>> Centre plans to start vaccination by Feb end
 
>> Planning bulk order with AstraZeneca for vaccine doses

(Source: Reuters)

NEWS ALERT :: Comfortable external balance, current account surplus has brought comfort: RBI Guv

-- Financial conditions in CP/corp bond markets have deteriorated

NEWS ALERT :: We have been able to ensure resilient, stable markets across segment, says RBI Guv

NEWS ALERT :: We need to be watchful of the rebound in economic activity, says Shaktikanta Das

-- Many Covid relief measures were proactively taken, many were reactive

-- Our efforts have been to be at the forefront to combat the crisis

-- Increased interaction with market helped us to take measures to deal with Covid

-- Need to be watchful of sustainability of demand post festivals

NEWS ALERT :: Indian economy has exhibited stronger-than-expected rebound in economic activity, say RBI Guv Shaktikanta Das at FEDAI event

Alert: FEDAI is Foreign Exchange Dealers' Association of India

IndiGo's runaway rally turns analysts wary; Citi downgrades stk to 'sell'

Analysts at Citi believe that the mammoth rally logged by IndiGo has been driven largely on expectation of consolidation in the industry, as airlines with weaker balance sheets grappled with negligible demand. “The airline’s market share, which peaked at 60 per cent in July 2020, could trend lower as peer firms ramp-up services,” it says. READ MORE

SBI Life, HDFC Life: Should you bet on insurance stocks amid Covid-19?

Most insurance stocks were trading in the positive territory in the morning trade on Thursday. For instance, ICICI Lombard was up over 5 per cent at Rs 1,451 on the BSE while ICICI Pru Life was trading 1.65 per cent higher at Rs 455.40. SBI Life Insurance, on the other hand, was quoting nearly a per cent higher at Rs 855.45. In comparison, the benchmark S&P BSE Sensex was trading flat at 43,817.99 levels. READ MORE

BROKERAGE VIEW | Emkay Global on Titan Company

RATING: BUY | TARGET PRICE: Rs 1,450 

Strong wedding season, pent-up demand and stable gold prices boosting demand can drive upsides to jewelry forecasts, in our view. With improving growth visibility and higher earnings outlook than peers, we expect Titan to trade at multiples in line with other high growth peers. We now value TTAN at 50x Dec’22E
earnings (vs. 47x earlier) and raise the TP to Rs1,450 (from Rs1,300). 

Sugar shares in focus; EID Parry hits 52-week high, Triveni surges 6%

KCP Sugar & Industries, Uttam Sugar Mills and Avadh Sugar & Energy were up between 8 per cent and 18 per cent, while Dalmia Bharat Sugar and Industries, Dwarikesh Sugar Industries, Dhampur Sugar Mills and Balrampur Chini Mills were in the range of 3 per cent to 6 per cent on the BSE. In comparison, the S&P BSE Sensex was trading flat at 43,835 points at 10:45 am. READ MORE

Sector in focus :: Sugar stocks surge on report Piyush Goyal to hold meeting with sector stakeholders

>> TV reports suggest, Piyush Goyal to hold meeting at 6.30 pm today

>> May discuss implementation of MSP

>> May announce sops for the sector by Friday


Puravankara shares hit a fresh 52-week high, rally 80% in three weeks

Shares of Puravankara hit a fresh 52-week high of Rs 78.90, up 4 per cent on the BSE in intra-day trade on Thursday after reports said that Godrej Fund is in talks with Bengaluru-based developer for Rs 1,200 crore deal. In the past three weeks, the stock price of Puravankara has rallied 80 per cent from the level of Rs 43.80 on November 5. In comparison, the S&P BSE Sensex gained 6 per cent during the same period. READ MORE

NEWS ALERT :: RBI Governor Shaktikanta Das to address FEDAI Annual Day programme at 11:30 AM today


MARKET UPDATE:: India VIX cools off 12%


Indian equities seen lagging other EM peers in the next few months

Emerging market (EM) equities are likely to outperform in the next few months, but India’s prospects look less attractive because of its rich valuations, according to estimates of two of the top European brokerages. UBS believes that global equities, particularly EMs, are likely to outperform in the coming 3-4 months, before US equities catch up from the second quarter of 2021. The brokerage is neutral on India, and has estimated an earnings per share (EPS) growth of 25 per cent for 2021 and 15 per cent for 2022. READ MORE

Siemens rallies 8% on good operational performance in September quarter

Shares of Siemens rallied 8 per cent to Rs 1,472 on the BSE in the early morning trade on Thursday even after the company reported a 4.7 per cent year-on-year (YoY) fall in consolidated net profit at Rs 330 crore for the September quarter mainly on higher expenses due to lockdown. READ MORE  


Here're the top technical analysis mistakes traders must avoid at all costs

Learning technical analysis is a tedious task which takes years of practice and study to master. Traders undergo a whole lot of emotions till they can get a fair idea about the structure and skills involved in technical analysis. And, because of this, a few market participants tend to deviate from the core ideology of technical analysis. READ MORE

Rupee opening

Rupee opens higher at 73.83/$ vs Thursday's close of 73.91 against US dollar

Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 9.77 0.51
B H E L 30.85 0.65
FUTURE CONSUMER 8.66 -4.94
O N G C 80.15 -0.80
J & K BANK 22.19 -3.52
» More on Most Active Volume

MARKET UPDATE:: Sensex slips into the red


Laurus Labs gains 5% on acquisition of Richcore Lifesciences

“Laurus Labs has signed a definitive agreement to acquire 72.55 per cent of Richcore’s shares from Eight Roads Ventures and VenturEast for a value of Rs. 246.7 crore,” the company said in a press release. READ MORE 


NEWS ALERT : Govt to announce more reform measure before Budget 2021-22, says Principal Eco Advisor

>> Govt to continue asset creation exercise

>> RBI has done its job

InterGlobe Aviation declines 3% after Citi downgrades stock to sell


Nifty Bank trades in the red


PVR slips in the red

>> Gem Equity has bought 3,50,000 shares of PVR at Rs 1,315.11 apiece, NSE bulk deal data show.


Siemens soars 6% post Sept qtr result

>> Technology major Siemens on Wednesday reported 4.7 per cent fall in net profit at Rs 333 crore for September quarter mainly on higher expenses due to lockdown. "The Net Profit after Tax from continuing operations decreased by 4.7 per cent to Rs 333 crore, compared to the same period of previous year," a company statement said.


Fine Organics advances in trade

>> The company said its manufacturing facility situated at Additional MIDC Patalganga, Maharashtra has started its operations from Wednesday.


Laurus Labs gains 3% on agreement to acquire Richcore Life

>> Drug firm Laurus Labs on Wednesday said it has signed definitive agreements with the Eight Roads Ventures, VenturEast Proactive Fund and VenturEast Life Fund III to acquire 72.55 pc stake in biotech firm Richcore Lifesciences for a cash consideration of Rs 246.67 crore.


Sectoral trends at Open


Sensex Heatmap at Open


Opening Bell


Opening Bell


Commodity Heatmap


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


Markets at Pre-open


Markets at Pre-open


NEWS ALERT :: IL&FS receives a binding bid to acquire its energy advisory biz IL&FS Energy Development Co Ltd (IEDCL)

>> IL&FS invites more EoIs for co under Swiss Challenge Method

(Source: CNBC TV18)

Stocks to watch today

Laurus Labs: Drug firm Laurus Labs on Wednesday said it has signed definitive agreements with the Eight Roads Ventures, VenturEast Proactive Fund and VenturEast Life Fund III to acquire 72.55 pc stake in biotech firm Richcore Lifesciences for a cash consideration of Rs 246.67 crore.
 
Banks may remain in focus today as a report by RBI said the bank credit growth decelerated to 5.8 per cent in September 2020 from 8.9 per cent a year ago. Further, banking operations across the country may be impacted on Thursday as some bank unions would be joining the one-day nationwide strike called by central trade unions.
 
Fine Organic Industries: The company said its manufacturing facility situated at Additional MIDC Patalganga, Maharashtra has started its operations from Wednesday. READ MORE  

Currency Outlook :: Reliance Securities

>> The Rupee could likely open around 73.85-73.86 per dollar compared with 73.91 at close on Wednesday.

>> NDF is at 73.78/73.79 this Thursday morning.

>> Foreign fund inflows into the domestic equity markets could also help the local unit. However, these flows are being continuously mopped up by the central bank and could cap gains in the currency.

>> Lack any major cues from the US could keep the currency in a small trading range today as U.S. markets are shut today on Thanksgiving holiday.

>> The major trigger point for the currency markets could come on Friday as investors awaited economic growth data for the second quarter.

>> Technically, USDINR Spot holds a resistance of 100-Daily Moving Average which is placed at 74.12 levels and is sustaining below that level indicating sideways momentum to continue where it hold a support near 73.75-73.70 levels. Resistance is at 74.00-74.10.

>> USDINR Spot is expected to trade in a range of 73.70-74.10 levels.

Market Outlook :: V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Wednesday's market correction indicates the vulnerability of markets at high levels & high valuations. But such profit bookings are desirable since they make markets healthy. The trend of mid-small-cap outperformance is likely to continue. It is important to appreciate that India now is the best emerging market performer and the largest recipient of FII flows during the last 2 months. Market may be discounting the sharp recovery in GDP growth & corporate  earnings expected in 2021-22. Also India Inc has done well to control cost & protect margins during this pandemic- triggered crisis

BROKERAGE VIEW :: MOFSL on Siemens

CMP: Rs 1362 | Reco: Neutral

> (a) Energy: Revenue was down 5% YoY to INR15.8b. The EBIT margin stood at 12.1% (up 140bp YoY). (b) Smart Infrastructure: Revenues were down 15% YoY to INR9.2b. The EBIT margin stood at 10.6% (up 110bp YoY). (c) Mobility: Revenues were down 16% YoY to INR3b. The EBIT margin stood at 13.8% (up 330bp YoY). (d) Digital industries: Revenues were down 12% YoY to INR6.3b. The EBIT margin stood flat YoY at 7.9%. (e) Portfolio of companies: Revenues were up 4% YoY to INR1.3b. The EBIT margin stood at 8.5% (v/s 1.4% YoY). Results have been restated post the sale of the Mechanical Drives business

BROKERAGE VIEW :: Kotak Institutional Equities on Timken

CMP: Rs 1176 | TP: Rs 830 | Reco: Sell

>> Timken India reported 2QFY21 EBITDA of Rs 827 mn (-8% yoy), 12% below our estimates due to 2% yoy decline in revenues. The company’s growth prospects remain strong due to pick-up in industry demand along with the CV segment, a strong order book in exports and steady demand in railways. However, we believe valuations are very expensive even after baking in the strong growth prospects. Retain SELL with a revised Fair Value of Rs830 (from Rs825).

NEWS ALERT :: Sebi board meeting scheduled later today

What to expect:

Media reports suggest market regulator may consider the following: 

>> Reducing settlement days to T+1.

>> Final call on zero amount of a client to be taken every 90 days
 
>> Capital adequacy norms for a broker
 
>> Banks needing a separate company to become clearing members

BROKERAGE VIEW :: ICICI Direct on Advanced Enzyme Technologies

CMP: Rs 332 | TP: Rs 425 | Reco: Buy

>> AET is poised to capture the growing opportunities in the enzymes and probiotics space backed by proven capabilities and stable financials that have been fairly consistent, thanks to a mix of organic and inorganic growth strategy employed by the management. Strong margins and healthy return ratios reflect the pricing power and balance sheet strength of the company. Going ahead, the management intends to augment its R&D capability for better facilitation and strengthening of in-house R&D capability, which bodes well in the long run in its quest to improve scalability and a possible foray into more complex enzymes. We ascribe a target price of | 425 based on 25x FY23E EPS of | 17.

BROKERAGE VIEW :: HDFC Institutional Equities on Sundram Fasteners

CMP: Rs 504 | TP: Rs 565 | Reco: Add

>> We initiate on Sundram Fasteners with an ADD recommendation. Volumes are back to pre-COVID levels for several segments, including cars, tractors and 2Ws. We expect sales to grow in mid-teens over FY21-23, led by a cyclical uptick in India and abroad. Sundaram's enhanced competencies have allowed it to diversify into multiple products. It is also expanding in the non-auto segment. It has lowered dependence on high tensile fasteners – with contribution reducing from 80% of revenues earlier to 31% currently. Sundram's diversified customer and product mix enable it to enjoy robust profitability - the elevated margins (16-18%) and high ROEs (in mid-teens) are a function of its mix across cars, tractors, CVs, exports and aftermarkets.

BROKERAGE VIEW :: Emkay Global on Titan Company

CMP: Rs 1,307 | TP: Rs 1,450 | Reco: Buy

>> TTAN has been one of the fastest-growing companies in our consumer universe with a 10-year profit CAGR of 20%. The Jewelry segment offers a huge growth opportunity, with TTAN having a strong brand franchise with sizable market share gain potential. Tanishq’s presence is still small and a comparison with auto names indicates huge headroom for penetration gains. TTAN’s growth strategy focused on store expansion, wedding segment and middle India has resulted in strong share gains with growth at 2x compared to top 13 players. Strong omni-channel initiatives and weak competition make it even better placed now to accelerate share gains.

>> We hence expect the jewelry division to sustain high growth momentum in the medium term. Recovery in other businesses and studded mix, cost savings and turnaround of Caratlane/eyewear are likely to drive margin gains and strong earnings from FY22. Reiterate Buy with a revised TP of Rs1,450, based on 50x Dec’22E EPS.

BROKERAGE VIEW :: Axis Securities on Bajaj Auto

CMP: Rs 3,091 | TP: Rs 3,350 | Reco: Add

>> Key Updates: (1) Oct-Nov retails for 2W industry to be down 12-15% YoY; Q4 likely to see similar decline but medium term outlook is positive given favorable macro factors, (2) Bajaj’s export volumes to remain robust in near term. It aims to deepen market share in existing markets and enter newer markets – it has identified 15 new countries for 3Ws, and (3) for domestic bikes, its focus will be on sub-segmenting and upgrading consumers in commuter segments and innovation and styling for sports and premium segment.

>> Outlook: Bajaj continues to be our preferred OEM pick within 2W sector. We increase our EBITDA estimates by 2-3% on higher export volume assumptions. ‘ADD’ stays with revised TP of Rs 3,350 (vs 3,250 previously). TP is based on 16x Sep 22E core EPS, cash of Rs 700/share and KTM stake at Rs 150/share.

Buying in cryptocurrency is putting pressure on precious metals: Tradebulls

Investors are shifting to cryptocurrency and so precious metals are falling. Both silver and gold headed to basement after strong US and Europe's economic data. Looking at the 6-month chart, the precious metal is currently trading below the 50-day and 100-day exponential moving averages. However, the outlook for the silver price movement is rather neutral to bearish. On daily chart, RSI still is not in oversold region so there is room for downside. In MCX, major support for silver comes at 60,200 while resistance comes at 62,000. Any dips around 60,200 would be good level for going long in silver. READ MORE

Bulk deals on BSE as on Wednesday

Bulk deals on NSE as on Wednesday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil check


SGX Nifty update

>> At 8:10 am, the index was at 12,928.5 levels, up 65.5 points or 0.5 per cent.

Asian shares mixed

Source: Reuters


S&P 500, Dow pull back from all-time closing highs after grim jobless data

Source: Reuters


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