MARKET WRAP: Sensex up 175 pts; Tata Motors surges 7%, RIL down over 1.5%

Topics MARKET WRAP | Markets

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

GLOBAL CUES

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. 


LIVE UPDATES

Top gainers and losers on S&P BSE Sensex at close


Sectoral trends at NSE at close


Closing Bell

-- Benchmarks end near day's high

-- 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

Stocks that hit 52-week high on BSE500 today

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
ICICI BANK 523.00 524.70 14.00 2.75
ICICI SEC 345.45 356.40 0.85 0.25
J K CEMENTS 1191.00 1197.60 39.90 3.47
MAX FINANCIAL 514.95 529.90 -11.95 -2.27
PFIZER 4400.00 4498.00 56.65 1.30
» More on 52 Week High

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.

(via Reuters)


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)

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


IT stocks trade higher

COMPANY LATEST(rs) CHG(rs) CHG(%) VOLUME
TCS 2055.85 5.45 0.27 231387
INFIBEAM AVENUES 50.40 -0.25 -0.49 138307
INFOSYS 703.85 5.50 0.79 126304
MINDTREE 746.40 29.45 4.11 92518
WIPRO 240.55 3.80 1.61 82378
» More

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

Rating: Reduce | CMP: Rs. 448 | Target Price: Rs. 414
 
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. 
Key risks 
  • 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 opening

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

Bulk deals on BSE as on Tuesday

Bulk deals on the NSE as on Tuesday

Date Symbol Security Name Client Name Buy / Sell Quantity Traded Trade Price /
Wght. Avg. 
Price
03-Dec-2019 AGROPHOS Agro Phos India Limited ANUPAM NARAIN GUPTA BUY 1,19,255 135.14
03-Dec-2019 AGROPHOS Agro Phos India Limited ANUPAM NARAIN GUPTA SELL 60,245 134.57
03-Dec-2019 CEATLTD CEAT Limited INDIA OPPORTUNITIES GROWTH FUND LTD PINEWOOD STRATEGY BUY 4,00,000 919.00
03-Dec-2019 CEATLTD CEAT Limited SOCIETE CEAT D INVESTISSEMENTS EN ASIE S A SPF SELL 4,00,000 919.00
03-Dec-2019 COX&KINGS Cox & Kings Limited ALPHA LEON ENTERPRISES LLP BUY 12,00,034 1.75
03-Dec-2019 COX&KINGS Cox & Kings Limited ALPHA LEON ENTERPRISES LLP SELL 5,00,034 1.85
03-Dec-2019 COX&KINGS Cox & Kings Limited ENTATHUR VEERARAGHAVA REDDIAR PERUMALSWAMI BUY 9,46,500 1.85
03-Dec-2019 COX&KINGS Cox & Kings Limited IFCI LTD. SELL 29,19,860 1.83
03-Dec-2019 COX&KINGS Cox & Kings Limited NARAYANAN SANMITHA BUY 18,99,000 1.83
03-Dec-2019 DISHTV Dish TV India Limited TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED BUY 110,46,659 12.42
Click here for the full list

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


Rupee check


Oil check

At 8:10 AM, Brent Crude Futures were at $61.17 a barrell, up 0.6 per cent.

SGX Nifty

At 8:08 AM, the Singaporean Exchange for Nifty Futures was trading 42 points lower at 12,008 levels.

Asian Markets check


US Market check


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