Broad-based buying across sectors in the fag end of the trading session pulled indices back in the positive territory on Wednesday after news agency Bloomberg reported that the US and China were closer to signing trade deal despite heated rhetoric.
The benchmark S&P BSE Sensex surged 374 points from day's low to settle at 40,850.29 level, up 175 points or 0.43 per cent, with Tata Motors (up over 7 per cent) being the top gainer and L&T (down 2 per cent) being the top laggard among the Sensex pack. On the NSE, the Nifty50 was back above the psychological mark of 12,000, and settled 49 points, or 0.41 per cent higher, at 12,043-mark.
On the sectoral front, all the indices ended the day in the positive territory except Nifty Realty index. Nifty PSU Bank index advanced 2 per cent, followed by Nifty Metal index (1.5 per cent). On the downside, Nifty Realty index closed 0.07 per cent lower.
In the broader market, the S&P BSE Mid-cap index rose 0.58 per cent to settle at 14,911.06, while the S&P BSE small-cap index closed at 13,453.60, up 0.33 per cent.
BHARAT BOND ETF
After exchange traded fund for equities, the Union Cabinet on Wednesday approved launch of a exchange traded fund for bonds. The fund will provide additional money for state-owned firms and other government organisations, Finance Minister Nirmala Sitharaman said. Bharat Bond Exchange Traded Fund would be the first corporate bond ETF in the country. READ MORE
Asian shares extended losses on Wednesday. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.9 per cent. Japan's Nikkei dropped 1 per cent, matched by falls in Hong Kong and Korea , where stock markets touched their lowest since October.
Shanghai blue chips fell 0.2 per cent and Australia's S&P/ASX200 tumbled 1.6 per cent, having shed almost 4 per cent since closing on Monday.
-- The S&P BSE Sensex surged 374 points from day's low to settle at 40,850.29 level, up 175 points or 0.43 per cent, with Tata Motors (up over 7 per cent) being the top gainer and L&T (down 2 per cent) being the top laggard among the Sensex pack.
-- On the NSE, the Nifty50 was back above the psychological mark of 12,000, and settled 43 points, or 0.36 per cent higher, at 12,037.30-mark.
Karvy crisis: SAT refuses relief to lenders, asks to approach Sebi by Dec 6
The Securities Appellate Tribunal on Wednesday refused any immediate relief to top lenders who had petitioned against the transfer of securities held with Karvy Stock Broking Ltd back to the clients.
ICICI Bank, HDFC Bank and IndusInd Bank had contended that many of these securities have been used to borrow money from them and had asked the tribunal to either get back the securities to them or freeze them in an escrow account. READ MORE
NEWS ALERT | Ashok Leyland to observe 2-12 non-working days in Dec: BSE filing
-- To be observed at few plants to align production with demand
Tata Motors climbs 7% on increase in JLR sales in the US
Shares of Tata Motors jumped 7 per cent in the intra-day deals on Wednesday after reports said its flagship arm and UK-based luxury carmaker Jaguar Land Rover sold 12,472 units in the US, an increase of 6.2 per cent YoY against 11,744 units in November 2018. On month-on-month basis, its sales rose 19.4 per cent. READ MORE
Metal stocks gain on reports US, China move closer to trade deal
Asian Markets check
Asian shares extended losses on Wednesday after US President Donald Trump said a trade deal with China might have to wait until after the 2020 presidential election, dashing hopes for a quick preliminary agreement.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.9 per cent. Japan's Nikkei dropped 1 per cent, matched by falls in Hong Kong and Korea , where stock markets touched their lowest since October.
Shanghai blue chips fell 0.2 per cent and Australia's S&P/ASX200 tumbled 1.6 per cent, having shed almost 4 per cent since closing on Monday.
STOCK WATCH :: Info Edge (India) records its sharpest intra-day fall since June 19.
-- Stock declined 7 per cent to Rs 2,370 on BSE on Wednesday
-- In past three trading days, the market price of the company has fallen 10 per cent.
-- In comparison, the benchmark S&P BSE Sensex was down marginally by 0.43 per cent during the same period
YES Bank's $2 billion capital plan leaves shareholders in two minds
Almost a week after embattled Yes Bank Ltd. unveiled details of its plans to raise $2 billion in capital, shareholders remain unconvinced that a deal will take place. Shares of the Mumbai-based lender have fallen about 10 per cent since it announced the names of the investors for its proposed preferential issue. Doubts over key foreign bidders have triggered concerns that the Reserve Bank of India might not allow them to take ownership of the bad-debt laden bank. READ MORE
NEWS ALERT | SEBI to pass order in Karvy stock broking case by Dec 12: SAT
-- No further relief to Bajaj Finance, other banks: SAT
-- SAT directs Bajaj Fin & other banks to approach SEBI by december 6 regarding their plea.
(via CNBC TV18)
MARKET UPDATE:: Sensex pares some losses
STOCK ALERT:: Gati locked in upper circuit of 5% at Rs 65.55 ahead of board meeting on Dec 5 to consider fund raising by way of preferential issue
NEWS ALERT | Will not set any deadline for trade deal with the US: Chinese Foreign Ministry
-- Says, necessary countermeasures must be taken to defend rights & interests & that no one should underestimate their resolve to safeguard China's interests
(As reported by CNBC TV18)
NEWS ALERT | Future Retail likely to launch 7-eleven stores in India
-- To open 1-2 stores of 2,000 sqft
-- Stores to have 40-45% of fresh food, and remaining packaged food in phase-1
Contribution to Sensex's fall today
NEWS ALERT | Shilpa Medicare gets EIR from US FDA for Karnataka unit
-- EIR for API manufacturing site located at Raichur, Karnataka
Alert: Inspection conducted during July 22-26
NEWS ALERT | Dr. Reddy's Labs launches Bortezomib injection in the US: BSE filing
-- Injection of 3.5 mg/vial for Intravenous use only
RIL slumps over 2%, top loser on Sensex
Nifty Bank slips in the red
Market check | Nifty slips below 11,950
NEWS ALERT | Each Bond ETF unit to be priced at Rs 1,000: FM
-- Market maker must have inventory of ETF units worth Rs 1 cr;
-- Bond ETF to comprise bonds of 3 and 10-year maturity as of now: FM;
-- Retail investors will have an option to participate in bond issues via ETF;
-- Bond ETF will be listed on exchanges;
-- Each unit to be priced at Rs 1,000;
-- CPSEs and public financial institutions to be part of the ETF;
-- Edelweiss to launch corporate bond ETF;
-- Bond ETF meant to give transparency, depth to bond market and give retail access;
-- Bond ETF post tax becomes an efficient instrument to invest
Market check | Indices slip
NEWS ALERT | Attempting to deepen the bond market in India: FM
-- Have seen good success rate from the two equity ETFs in 2014 & 2017: FM
NEWS ALERT | Cabinet approves creating an umbrella bond exchange traded fund (ETF)
#Cabinet approves launch of Bharat Bond Exchange Traded Fund
Fund to provide additional money for CPSUs, CPSEs & other Government organizations
Bharat Bond ETF would be the first corporate bond ETF in the country
Larsen & Toubro hits over 3-month low, stock down 11% in one month
Shares of Larsen & Toubro (L&T) hit an over three-month low of Rs 1,287, down 2 per cent on Wednesday, thue falling 3.5 per cent in the past two trading days, after media reports said Maharashtra Chief Minister has ordered a review of all projects/proposals cleared by earlier government in the last six months. READ MORE
NEWS ALERT | Cabinet clears 6 bills
-- Cabinet approves Citizenship Amendment Bill
-- Cabinet clears Personal Data Protection Bill
Tata Motors to hike passenger vehicle prices from Jan to offset BSVI impact
Tata Motors on Wednesday said it will increase prices of its passenger vehicles from January, primarily in order to offset impact of upgrading its portfolio to conform to BSVI emission norms.
The company currently sells products ranging from hatchback Tiago to SUV Harrier, priced between Rs 4.39 lakh and Rs 16.85 lakh (ex-showroom Delhi). READ MORE
Derivative pick by Anand Rathi Shares and Stock Brokers
NEWS ALERT | Ramco Systems' Dubai arm bags 5-yr order from West Asian MNC: BSE filing
Karvy crisis: Sebi gives time to six brokers to wind up client accounts
The Securities and Exchange Board of India (Sebi), in the wake of the Karvy crisis, has given time to at least six brokers to wind up their client securities accounts and submit the progress reports on pledged securities used to raise money from banks and finance firms.
Source said Sebi had identified some brokers, mostly mid-sized ones who had not just failed to separate client shares but raised loans and utilised them in their other ventures. READ MORE
Nifty sectoral indices at this hour
BROKERAGE RADAR | Geojit Financial Services on Bharat Forge
During Q2FY20, revenue de-grew by 17% YoY due to the slowdown in export (down by –18%YoY) & domestic segment by –36%YoY. The negativity in growth is largely contributed by both CV and industrial segment. BFL’s new value-added order received on aluminum forging is on track from the new AP plant. Further implementation of BS-VI norms will lead to an increase in content per vehicle in FY21. However the slowdown in domestic CV, Oil & Gas should weigh on its growth in the near term. At CMP, we value BFL at 18x Ft21E and maintain our reduce rating.
BROKERAGE RADAR | Motilal Oswal Financial Services on ICICI Bank
With asset quality issues getting sorted, ICICI Bank appears firmly positioned to deliver healthy sustainable growth, led by continued investments in technology and further expansion in digital offerings. We thus estimate RoA/RoE of 1.6%/15.7% in FY21. Reiterate Buy with a revised SOTP-based target price of Rs 625 (2.5x Sep’21E ABV).
BROKERAGE RADAR | ICICI Securities on Essel Propack
We maintain Buy with a revised TP of Rs 177 (9x Dec’21E EV/EBITDA). In our view, ESEL should trade at 9x Dec’21E EV/EBITDA due to:
331bps improvement in RoE over FY20-22E,
improvement in EBITDA margins by 44bps/58bps in FY20/21E,
and FCF yield of 5.9%/6.1%/6.1% for FY20/21/22E.
weak demand for its products,
inability to pass on increase in raw material prices to customers.
Momentum picks by ICICI Securities
Explained: Why RBI's repo rate cuts are not enough to bolster GDP growth
According to economists, rate cuts have failed to boost GDP, as the present economic slowdown has been aggravated by a decline in consumption; it has not been driven by a glut on the supply side.
Sample this: During the September quarter, India’s private final consumption expenditure (PFCE) grew 5.06 per cent (at constant prices), against 9.8 per cent in the same quarter of 2018-19. Further, the manufacturing sector, which accounts for about 75 per cent of the country's factory output, contracted 1 per cent, broadly underlining that people were putting off their purchase of aspirational items like cars and televisions. READ MORE
Global economy on the mend; growth to pick up in 2020, say analysts
After nearly two years of flagging growth, global GDP rate is set to stabilise in calendar year 2020 (CY20) and start looking up from the second half of the year into 2021, leading brokerages have said. However, for this to happen, they expect trade tensions to ease, jobs growth and consumption in the US to remain robust and central bank stimulus to gain some traction.
Analysts at Goldman Sachs, for instance, see a pick-up in global growth rates going ahead in response to easier financial conditions and an end to the trade escalation between the US and China. Based on their working model, they see a 20 per cent chance of the US economy entering a recessionary phase in 2020. READ MORE
ICICI Bank gains 3%, hits new high as brokerages raise target price
Shares of ICICI Bank rallied 3 per cent to Rs 525, also its new high on the BSE on Wednesday, after brokerages retained their ‘buy’ rating on the stock while raising 12-month target price in anticipation of strong earnings going forward. The private sector lender's stock surpassed its previous high of Rs 520, hit on November 28, 2019. READ MORE
Max India slips 5% after IRDAI approves sale of 51% stake in Max Bupa
Shares of Max India slipped 4.8 per cent to Rs 76.5 on the BSE on Wednesday after insurance regulator Insurance Regulatory & Development Authority of India (IRDAI) approved divestment of its 51 per cent stake in Max Bupa Health Insurance to Private Equity firm True North. The all-cash transaction announced in February 2019 valued Max Bupa at an enterprise value of Rs 1,001 crore.
With the deal getting regulatory approval, Max India will exit the health insurance business. In a regulatory filing on Tuesday, the firm informed the exchanges that the transaction is expected to be concluded within the next few weeks. READ MORE
HDFC Asset Management dips 3% as promoter looks to offload stake
Shares of HDFC Asset Management fell as much as 3 per cent to Rs 3,334 in early trade on the BSE on Wednesday after one of the promoters, Standard Life Investments, offered to offload 2.3 per cent stake in the fund house. In a regulatory filing to exchanges, Standard Life proposed to sell up to 4.75 million equity shares, or 2.23 per cent of the total issued and paid-up equity share capital of HDFC AMC, with an option to sell additional 3.85 million shares, or 1.81 per cent of the equity, through offer-for-sale mechanism. READ MORE
NEWS ALERT | Received US FDA's tentative approval for Diclofenac Potassium Softgel Capsules: Strides Pharma
-- Strides Pharma Global Pte. Limited, Singapore received tentative approval 25 mg capsules
-- The product is a generic version of Zipsor Capsules, 25 mg, of Assertio Therapeutics, Inc.
PSU Banks gain in trade
NEWS ALERT | India November Services PMI at 52.7 vs 49.2 (MoM): CNBC TV18
-- India November September Composite PMI at 52.7 vs 49.6 (MoM)
Eris Lifesciences climbs 3% after it acquires trademark Zomelis for $13 mn
Shares of Eris Lifesciences on Wednesday climbed up to 3 per cent to Rs 447.45 apiece on the BSE after the company announced acquisition of the trademark Zomelis, for Vildagliptin-based formulations, and its associated trademarks from Novartis AG, Switzerland, for a consideration of $13 million (roughly Rs 93 crore).
Used in the treatment of type 2 diabetes, Zomelis comes under a new class of anti-diabetic drugs known as DPP 4 inhibitors. READ MORE
CSB Bank makes strong debut, lists at 41% premium against issue price
Shares of CSB Bank made a strong debut by listing at Rs 275, a 41 per cent premium against its issue price of Rs 195 per share on the NSE on Wednesday.
Fairfax-backed CSB Bank’s Rs 410-crore initial public offering (IPO) was subscribed a whopping 86.89 times last month. The category reserved for qualified institutional buyers (QIBs) was subscribed 62.18 times, non institutional investors (NIIs) 164.68 times and retail individual investors quota was subscribed 44.25 times, the exchange data shows. READ MORE
Reliance Industries down 1%
LISTING ALERT :: CSB Bank sees bumper listing
BUZZING STOCK:: Adani Transmission zooms 4%
Sharp recovery in Sensex
Goldman Sachs expects Nifty to scale 13,000-mark by December 2020
Goldman Sachs expects the benchmark Nifty to climb to 13,000 by the end of next year. This implies a less-than-8 per cent upside from its current levels.
The index on Tuesday ended at 11,994. While the brokerage is forecasting corporate earnings to grow 16 per cent in 2020, below the consensus estimate of 20 per cent, the upside in stocks will be lower as the bulk of growth expectations have already been factored in. READ MORE
Tata Motors up over 2%
BUZZING STOCK:: Corporation Bank up 7%
Metal stocks trade lower as Trump says trade deal with China might have to wait for 2020 polls
Eris Lifesciences trades over 2% higher
-- Co has announced acquisition of the trademark Zomelis, for Vildagliptin-based formulations, and its associated trademarks from Novartis AG, Switzerland, for a consideration of $13 million (roughly Rs 93 crore).
Lakshmi Vilas Bank trades higher
-- Entities belonging to the Capri group have bought around 4.9 per cent in the bank, reports say.
ICICI Bank trades in the green
Tata Steel trades 2% lower
Motherson Sumi slips in trade
Bharat Forge declines 3% in early trade
Sectoral trends at NSE during Opening trade
Top gainers and losers on S&P BSE Sensex during Opening trade
Market at Open
Market at Open
Rupee opens lower at 71.80/$ vs Tuesday's close of 71.67 against the US dollar
NEWS ALERT | DCC to met soon to discuss state of telecom sector: CNBC TV18
-- DCC is Digital Communications Commission
Top gainers and losers on S&P BSE Sensex during Pre-open
Market at Pre-open
Market at Pre-open
UltraTech, Ramco Cements: Analysts see significant upside in cement stocks
Finance Minister Nirmala Sitharaman recently hinted at a Rs 100 trillion infrastructure drive to be unveiled in the coming weeks in a bid to kick-start the waning economy. The move follows abysmal gross domestic product (GDP) for the September quarter which sank to over six-year low of 4.5 per cent. Amid the gloomy GDP print; however, what is noteworthy is that the government spending rose sharply to 15.6 per cent during the quarter, as against 8.8 per cent in 1QFY20. READ MORE
Stocks to watch
HDFC AMC: Standard Life Investments Ltd, one of the promoters of HDFC Asset Management Company, will offload 2.23 per cent stake in the fund house on December 4-5.
ICICI Bank: As per reports, Nomura has raised the target price of the stock to Rs 645 from Rs 620. READ MORE
GMR Infra to Dish TV: NSE identifies eight firms for surveillance action
Leading stock exchange NSE has shortlisted eight companies, including Future Enterprises and GMR Infrastructure, that have higher levels of pledged shares by promoters, for surveillance action. The exchange would levy minimum margin of 35 per cent on the respective shares, including on stocks in derivatives segment. READ MORE
Standard Life to sell 2.23% stake in HDFC AMC via OFS mechanism
Standard Life Investments Ltd, one of the promoters of HDFC Asset Management Company, will offload 2.23 per cent stake in the fund house on December 4-5. In a regulatory filing to stock exchanges, Standard Life has proposed to sell up to 47.5 lakh equity shares, representing 2.23 per cent of the total issued and paid-up equity share capital of HDFC AMC through offer-for-sale mechanism. READ MORE
Stock pick by Religare Broking
Buy IndusInd Bank Limited
Last Close: Rs 1,544.70
Initiation range: Rs 1,520-1,530
Target: Rs 1,590
Stop loss: Rs 1,500
INDUSINDBK is witnessing marginal profit taking of late, after the gradual rise from roughly 1,190 to 1,600-mark. We feel it’s a healthy correction and it would resume the uptrend soon. The overall buoyancy in the private banking space is an added positive. Participants should use further dip to create fresh longs in the given range. READ MORE