MARKET WRAP: Indices pare gains, Sensex ends 70 pts higher; Airtel up 9%

Equity market ended an action-packed day in the positive territory on Friday, though the benchmark indices trimmed most of their gains towards the end of the session. Shares of telecom companies - Vodafone Idea and Bharti Airtel surged amid hopes that the government would step in to help the ailing sector, a day after the two companies reported a combined loss of Rs 74,000 crore and warned their ability to operate and make profits would depend on relief from the country.

Besides, rally in PSU banks post Supreme Court ruling in Essar Steel case and reports that important trade issues between India and the US have been resolved and the countries may sign initial trade package boosted investor sentiment. That apart, US-China trade deal hopes, too, cheered market particpants. 

The S&P BSE Sensex ended 70 points or 0.17 per cent higher at 40,356.69. During the day, the index hit a high and low of 40,650.06 and 40,308.09, respectively. Bharti Airtel (up around 8.50 per cent) emerged as the biggest gainer on the index while Hero MotoCorp (down nearly 2 per cent) was the top laggard. 

SBI, Bharti Airtel, HDFC Bank, Reliance Industries (RIL), and Sun Pharma contributed the most to the index's gains while ITC, TCS and Maruti were the top drags. In the broader market, the S&P BSE MidCap index ended at 14,773 levels, up 93 points or 0.63 per cent while the S&P BSE SmallCap index slipped 17 points or 0.13 per cent to end at 13,326.40.

On the NSE, the Nifty50 index added 23 points or 0.20 per cent to end at 11,895.30 levels.

Sectorally, PSU bank stocks advanced the most. Pharma counters came second on the list. Nifty PSU Bank index climbed 3.50 per cent to 2,462.75 levels. On the other hand, auto stocks bled the most with the Nifty Auto index falling 0.54 per cent to 8,146.65 levels. 

Volatility guage India VIX declined over 4 per cent to 14.96 levels.

On a weekly basis, Sensex added 0.08 per cent while Nifty lost 0.10 per cent. 

BUZZING STOCKS

Telecom major Vodafone Idea plunged 11.5 per cent to hit an all-time low of Rs 2.61 apiece on the BSE on Friday after the company reported a net loss of Rs 50,922 crore, the biggest ever loss in corporate India's history, due to outstanding payment related to adjusted gross revenues, or AGR. The stock, however, bounced back later and ended around 25 per cent higher at Rs 3.68 on the BSE. READ MORE

Shares of public sector banks (PSBs) inched higher at the bourses on Friday, with the Nifty PSU Bank index gaining more than 3 per cent after the Supreme Court said the NCLAT cannot interfere with the commercial decisions taken by banks in Essar Steel case. READ MORE   

GLOBAL MARKETS

Asian stocks jumped on Friday, lifted by White House comments that suggested the possibility of an imminent trade deal between Washington and Beijing, which revived hopes that their tariff war may be nearing an end. In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.57 per cent. Japan’s Nikkei added 0.7 per cent and Australian shares gained 0.87 per cent. 

Chinese blue-chip shares, in contrast, struggled to hold gains after rising as much as 0.23 per cent earlier in the day. The CSI300 index was last down 0.45 per cent. In Hong Kong, where anti-government protesters paralyzed parts of the financial hub for a fifth day on Friday, the Hang Seng index gained 0.15 per cent, but was on track for its worst weekly performance in nearly four months.

In European markets, pan-region Euro Stoxx 50 futures rose 0.57 per cent to 3,705, German DAX futures climbed 0.53 per cent to 13,253.5, and FTSE futures inched up 0.36 per cent to 7,322 levels.

In commodities, oil prices rose as hopes built for OPEC supply curbs.

(With inputs from Reuters) 


3:42 PM IST Allahabad Bank was the only counter that ended weak

3:41 PM IST Nifty PSU Bank index rallied over 3%

3:40 PM IST Bharti Airtel, bank stocks among top gainers

3:39 PM IST

3:36 PM IST The S&P BSE Sensex gained 70 points or 0.17 per cent to end at 40,356.69 while NSE's Nifty50 index settled at 11,895.30, up 23 points or 0.20 per cent.

3:21 PM IST The first half (April-September) of the financial year has been challenging and volume on half yearly basis have seen 12 per cent de-growth from 109,093 MT in H1FY19 to 96,473 MT in H1FY20. At the start of the year, the management had guided for 3 per cent to 5 per cent volume growth for the current financial year. READ MORE 

3:05 PM IST

3:02 PM IST

2:57 PM IST Given lower-than-expected revenue growth and premium valuation, we value VOL at 24x (26x earlier) on FY21E and downgrade to "Reduce" from "Accumulate" rating with a target price of Rs 1,816.

2:45 PM IST

2:35 PM IST The changes in the insurance sector take place at a slower pace. However, majority of insurance players are now considering a move to cloud. Hence, Majesco’s focus on cloud revenues would be a key growth driver in the long run. However, in the near term, we expect growth in cloud revenues to be under pressure due to completion of IBM-MetLife deal and time gap in scaling up subscription revenues. We believe key to the company’s re-rating will be winning of a large deal from a Tier-1 player as seen in the IBM-MetLife deal. Hence, we maintain our HOLD recommendation on the stock with a revised target price of Rs 450/share.

LIVE UPDATES

PSU banks gained ground in trade today

Allahabad Bank was the only counter that ended weak



Nifty snapshot

Nifty PSU Bank index rallied over 3%



Sensex heat map

Bharti Airtel, bank stocks among top gainers



Index watch


CLOSING BELL

The S&P BSE Sensex gained 70 points or 0.17 per cent to end at 40,356.69 while NSE's Nifty50 index settled at 11,895.30, up 23 points or 0.20 per cent.

Balkrishna Industries climbs 6% post Q2 results

The first half (April-September) of the financial year has been challenging and volume on half yearly basis have seen 12 per cent de-growth from 109,093 MT in H1FY19 to 96,473 MT in H1FY20. At the start of the year, the management had guided for 3 per cent to 5 per cent volume growth for the current financial year. READ MORE 

Market check


Essar Steel case impact


BROKERAGE RADAR | Geojit Financial Services on Vinati Organics

Given lower-than-expected revenue growth and premium valuation, we value VOL at 24x (26x earlier) on FY21E and downgrade to "Reduce" from "Accumulate" rating with a target price of Rs 1,816.

Bharti Airtel hits 52-week high


BROKERAGE RADAR | ICICI Securities on Majesco

The changes in the insurance sector take place at a slower pace. However, majority of insurance players are now considering a move to cloud. Hence, Majesco’s focus on cloud revenues would be a key growth driver in the long run. However, in the near term, we expect growth in cloud revenues to be under pressure due to completion of IBM-MetLife deal and time gap in scaling up subscription revenues. We believe key to the company’s re-rating will be winning of a large deal from a Tier-1 player as seen in the IBM-MetLife deal. Hence, we maintain our HOLD recommendation on the stock with a revised target price of Rs 450/share.

MARKET CHECK | Top losers on the BSE at present


MARKET CHECK | Vodafone Idea up 41% from day's low


Index Contributors at this hour


Analysts remain bullish on Bharti Airtel despite Rs 31,334 cr pre-tax loss

Most brokerages have maintained a bullish stance on Sunil Mittal-controlled Bharti Airtel despite the company posting a mammoth pre-tax loss of Rs 31,334 crore for the September 2019 quarter (Q2FY20). The loss is due to a provision for outstanding payments to the central government on account of the Supreme Court judgment on adjusted gross revenues (AGR). The pre-tax loss in the year-ago quarter stood at Rs 1,998 crore.
 
The numbers were announced post-market hours on Thursday and saw the stock drop to Rs 354 levels on the BSE once the markets opened for trade on Friday. It, however, bounced back as trade progressed and is now inching closer to its 52-week high of Rs 397 touched on October 14, 2019 in the intra-day deals. READ MORE

Vodafone Idea Concall | Review of floor pricing, if done, will be positive for industry: Voda CEO

-- Govt has made it clear, it wants to see 3 private players, 1 govt player

-- SC's judgement on AGR has significant financial impact on industry

-- Govt aware of tremendous pressure on players

-- Co is in process of filing review petition

(As reported by CNBC TV18)

NEWS ALERT | Panel proposes charges on deferred spectrum payment at SBI MCLR: Govt official

-- Telcos can jointly save Rs 11,000 cr from deferred spectrum payment

-- Proposed licence fee cut will lead to Rs 3,000 cr savings for 3 telecom companies

(As reported by CNBC TV18 quoting Agencies)

NEWS ALERT | Prime Focus-arm DNEG delays IPO due to ongoing market uncertainty: BSE filing


Fortis Healthcare slips as SC holds Singh bros guilty of contempt of court

Shares of Fortis Healthcare turned volatile, falling 20 per cent in the intra-day trade from its early morning high on the BSE on Friday after the Supreme Court held former Ranbaxy promoters Malvinder Singh and Shivinder Singh guilty of contempt of court for violating its order asking them not to divest their shares in Fortis Healthcare. READ MORE

Vodafone Idea Concall | Top priority is to ensure integration moves swiftly

-- Confident of completing integration by March 2020

-- 78% integration has been done

BROKERAGE RADAR | Edelweiss Securities on Dish TV

We maintain our cautious stance on the cable and distribution space given the challenging environment. For Dish TV, we believe resolution of issues at the promoter level would be key, given the higher promoter pledging standing at ~94% of the promoter shares. We trim our multiple from 3.5x to 2.5x EV/EBITDA in light of increased competitive landscape, challenges to ARPU growth, slow subscriber addition and rising risks from OTT platforms, to arrive at a TP of INR15. At CMP, the stock trades at 1.6x FY21E EV/EBITDA. We maintain ‘HOLD/SU’.

Divi's Labs gains 5% as USFDA issues no observations for Telangana plant

“The Company's Unit-I facility at Lingojigudem, Bhuvanagiri Yadadri district, Telangana has been inspected by the US Food and Drug Administration (USFDA) from the 11th of November, 2019 to the 15th of November, 2019. The inspection has been concluded with no 483 observations,” Divis Labs said in a regulatory filing. READ MORE  

NEWS ALERT | Govt can prospectively redefine AGR: COAI to CNBC-TV18

  • Debt restructuring for telcos is the need of the hour; 
  • Govt can give a longer tenure for repayment of spectrum labililities; 
  • License fee, SUC need to be reduces; &
  • Govt can prospectively redefine AGR and reduce the outgo for telcos. 

Essar Steel case: SC clears way for ArcelorMittal to complete $1.8 bn deal

The Supreme Court allowed Arcelor to make the payment for Essar Steel India Ltd. and set aside a bankruptcy appellate tribunal’s order that had given secured and unsecured creditors equal right over the sale proceeds. The lenders’ panel of a bankrupt company has discretion in the distribution of funds in insolvencies, a three-judge bench headed by Justice Rohinton F Nariman said Friday. READ MORE   

BROKERAGE RADAR | HDFC Securities on SpiceJet

Maintain BUY as (1) SpiceJet will benefit from the improving industry structure in the medium term (2) Fuel prices remain benign, which will allow for better cost management (3) Further, any resolution with regards to the 737 MAX planes will improve the cost structure of the low cost carrier. The stock is trading at reasonable valuations of 9.6/6.7/5.9x EV/EBITDAR on FY20/21E/22E.

Three key reasons why CLSA is bullish on pharma MNCs in India

Shares of domestic pharma companies haven't been in the pink of health in the last two years, but those of multinational pharma companies (MNC pharma) have rewarded their investors handsomely. A focus on key brands and increasing acceptance for patented products have enabled MNCs to report strong revenue and Ebitda growth over the last 12-18 months. Analysts say these companies seem better placed to withstand disruption, if any, from government policies. READ MORE 

 

Bharti Airtel 12% off day's low on report govt mulls relief sops for sector

The stock of the telecom services provider was trading close to its 52-week high of Rs 397 touched on October 14, 2019 in the intra-day deal.
 
According to a report by business channel CNBC-TV 18, Committee of Secretaries (CoS) was mulling setting a minimum price for mobile calls and data. "The CoS has approached the Department of Telecom to suggest quantum of minimum charge with least impact on consumers," the report added. READ MORE

Sebi allows exchanges to modify commodity derivatives contracts

The market regulator on Thursday allowed exchanges to carry out non-material modifications and report to the regulator and market participants at least 10 days in advance.
 
The regulator has also allowed exchanges to modify contract specifications for material modifications for all running contracts that have ‘nil’ open interest and those yet-to-be-launched contracts. Such modifications shall require approval from the product advisory committee (PAC) and the regulatory oversight committee (ROC) of the exchange. Such changes need to be brought before Sebi and market participants at least one month ahead of their scheduled date of application. READ MORE

Bajaj Finance, Symphony: 10 stocks that have zoomed over 5,000% in 10 years

A quick analysis of the BSE 500 stocks’ return over the past 10 years reveals an interesting picture. As many as 63 stocks have zoomed over 1,000 per cent during this period. Avanti Feeds and Caplin Point Laboratories top this list with an astounding rally of over 39,000 per cent and 21,000 per cent respectively on an absolute basis, ACE Equity data show.
 
Bajaj Finance, Symphony, PI Industries, Atul Auto, Astral Poly Technik, Relaxo Footwears and Ajanta Pharma are some of the other stocks that have gained over 5,000 per cent on an absolute basis during this period. READ REPORT HERE

ONGC trades lower post weak Q2 result

ONGC on Thursday reported a 36.2 per cent drop in second quarter net profit as it faced double whammy of fall in oil production and drop in prices.


PSBs gain up to 17% as SC sets aside NCLAT judgement in Essar Steel case

Shares of public sector undertaking (PSU) banks inched higher at the bourses on Friday, with the Nifty PSU Bank index gaining more than 3 per cent after the Supreme Court said the NCLAT cannot interfere with the commercial decisions taken by banks in Essar Steel case.
 
According to reports, while pronouncing the judgement, the Court set aside the NCLAT's judgment and said there was "no doubt that the ultimate discretion on distribution is with Committee of Creditors (CoC)" READ MORE

AGR woes: Voda Idea hits record low post Rs 51K cr loss in Q2; Airtel gains up to 5%

Vodafone Idea reported a massive pre-tax loss of Rs 36,959 crore for the July-September quarter, against a loss of Rs 4,974 crore in the year-ago quarter while the loss in the June quarter was Rs 4,874 crore. It provisioned for Rs 27,610 crore on account of licence fees and Rs 16,540 crore, including interest and penalties on interest, related to spectrum usage charges (SUC) up to September 30, 2019, the company's financial statement show. READ MORE

NEWS ALERT | UPL to acquire Chinese co Yoloo Biotech in all-cash deal for $13.3 million: BSE Filing

-- UPL wil hold 75% and Beijing Yoloo 25% in Yoloo Biotech.

-- The acquisition is expected to be completed by April 2020

Vodafone Idea recovers 24.5% from day's low


Market check


Chart check: Here's how metal stocks have fared at the bourses

Thus far in the calendar year 2019 (CY19), most metal counters have performed poorly at the bourses. While the benchmark Nifty50 index has gained around 10 per cent, shares of metal companies such as Nalco, SAIL, Hindustan Zinc, Vedanta, and Tata Steel have tumbled up to 30 per cent during the period. READ MORE  


BROKERAGE RADAR | ICICI Securities on Grasim Inds

Management expects the pressure on prices in both businesses to continue in near term. Besides, the management indicated the company would like to maintain its current shareholding in consolidating subsidiaries (UTCEM and ABCL) and there are no corporate guarantees / commitments given by the company to fund VIL operations. Factoring lower margins in core businesses, we cut our FY20E-21E EBITDA 17% and target price to Rs830/share (earlier: Rs940) based on 7x Sep’21E EV/E (half-yearly rollover) and assuming 60% holdco discount. Downgrade to ADD.

BUZZING STOCK | RPG Life surges nearly 5%


Top 5 gainers on the BSE at present


Momentum Picks by ICICI Securities


ONGC up 1% post Q2 results


Vodafone Idea plunges 10% after reporting biggest-ever loss in India Inc history


BUZZING STOCK | Bharti Airtel surges over 1% despite Q2 loss


Sectoral gainers and losers on the NSE


Top gainers and losers on the S&P BSE Sensex


OPENING DEALS

At 09:16 am, the S&P BSE Sensex was trading 122 points or 0.30 per cent higher at 40,408.20 while NSE's Nifty50 index was trading above 11,900 levels at 11,904, up 32 points or 0.27 per cent.

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


Market at Pre-open


Market at Pre-open


Rupee Opening Alert

Rupee opens higher at 71.79/$ vs Thursday's close of Rs 71.97 against a US dollar

AGR woes: Bharti Airtel, Voda Idea post a combined Rs 74,000-cr loss in Q2

Stung by colosal losses, Vodafone Idea said its ability to continue as a going concern is dependent on obtaining relief from the government and positive outcome of the proposed legal remedy.
 
The company is also in the process of filing a review petition against the Supreme Court order. READ MORE

Vodafone Idea net worth down 70%, Bharti Airtel hurt but still in the game

Vodafone Idea’s net debt to equity ratio has jumped to a record level of 4.5x at the end of September this year, as against 1.24x at the end of June and 1.8x at March-end. This makes Vodafone Idea one of the most indebted firms in the country comparable to financially stressed firms in sectors such as infrastructure and power sector. READ MORE

Stocks to watch: Bharti Airtel, Vodafone Idea, ONGC, Union Bank, IOC

Here's a look at the top stocks that may remain in focus today -
 
Bharti Airtel, Vodafone Idea: Bharti Airtel on Thursday reported a pre-tax loss of Rs 31,334 crore for the September quarter (Q2), after the company provided for outstanding payments to the central government on account of the Supreme Court judgment on adjusted gross revenues (AGR). The pre-tax loss in the year-ago quarter stood at Rs 1,998 crore.

On the other hand, Vodafone Idea reported a massive pre-tax loss of Rs 36,959 crore for the July-September quarter after it provided for payments related to adjusted gross revenues, or AGR. The company took a hit of Rs 30,774 crore (including AGR) for the quarter. This led to a loss of Rs 50,922 crore at the net level, the highest-ever for an Indian company.
 
ONGC: State-owned Oil and Natural Gas Corporation (ONGC) on Thursday reported a 36.2 per cent drop in second quarter net profit as it faced double whammy of fall in oil production and drop in prices. READ MORE

Top stock recommendations from Anand Rathi: Buy Infosys, HDFC Bank

HDFC BANK: BUY | TGT: Rs 1,330 | SL: Rs 1,255
 
The stock has provided a breakout from the falling channel and with that it has resumed its fresh trend on the upside. The daily as well as weekly momentum indicator is well in the buy mode, so one can buy this for the target of Rs 1,330 with a stop loss of Rs 1,255. READ MORE

Commodity outlook by Tradebulls Securities: Buy lead, natural gas

Indian rupee has been on a downward spiral after India’s disappointing index of industrial production (IIP) number last week. On November 13, the Indian rupee broke the 72 level after retail inflation came more than expected and above RBI’s target of 4 per cent. Retail inflation came at 4.68 per cent on the back of a rise in food inflation because of erratic monsoon. On November 14, the rupee did manage to stage a comeback but it was short lived. It seems we will see weak rupee going forward as it has broken its range of 71.60-70.80. We expect rupee to trade near 72.10 levels with downside capped at 71.40 and upside capped at 72.80. READ MORE

Technical calls from HDFC Securities: Buy Bajaj Finance Futures

-- Higher tops and higher bottoms on the daily and weekly charts
 
-- Stock price has been taking support on its 20 DMA READ MORE
 

Bulk deals on BSE as on Thursday

Bulk deals on NSE as on Thursday

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


Rupee Check

Source: Bloomberg


Oil Check

At 8:21 AM, Brent Crude Futures were at $62.56 per barrel-mark.

SGX Nifty

At 8:17 AM, the Singaporean Exchange for Nifty Futures was at 11,915, up 28 points.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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