Continuing their northward movement, the benchmark indices gained another 0.5 per cent on Wednesday to settle at fresh closing peaks. The S&P BSE Sensex topped the 44,000-mark to end the day at 44,180 levels, up 227 points, or 0.52 per cent while NSE's Nifty closed the session at 12,938, up 64 points, or 0.5 per cent.
Larsen & Toubro (L&T), ICICI Bank, and Mahindra & Mahindra (M&M) were the top contributors to the Sensex's gain today while Infosys, TCS, and Hindustan Unilever (HUL) were the top drags.
India VIX slipped nearly 3 per cent to 19.26 levels.
Among sectoral indices on the NSE, Nifty PSU Bank index gained the most - up 3.57 per cent, followed by Nifty Auto (up 3 per cent to 8,687 levels). On the other hand, Nifty FMCG slipped over 1 per cent to 30,953 levels.
In the broader market, the S&P BSE MidCap index advanced over 1 per cent to 16,344 levels and the S&P BSE SmallCap index closed at 16,054, up 144 points, or 0.9 per cent.
Global shares stepped back on Wednesday as soft US retail sales fuelled worries that rising coronavirus cases could hit a still fragile economic recovery, dampening the euphoria from vaccine trial breakthroughs.
US S&P500 futures shed 0.4 per cent, a day after the S&P500 index lost 0.48 per cent, while Europe’s Euro Stoxx 50 futures eased 0.3 per cent.
Japan’s Nikkei fell 1.1 per cent, bruised by news that new coronavirus cases in Tokyo hit a record high.
In commodities, oil prices edged higher on hopes for delay in OPEC+ supply increase.
MARKET AT CLOSE | Gainers and losers on the S&P BSE Sensex
The S&P BSE Sensex gained 227 points, or 0.52 per cent to settle at 44,180 levels while NSE's Nifty ended at 12,938, up 64 points, or 0.5 per cent.
Bajaj Finance nears record high; stock surges 44% in one month
Shares of Bajaj Finance moved higher by 4 per cent to Rs 4,678 on the BSE in intra-day trade on Wednesday, thereby surging 44 per cent in the past one month. The stock of the non-banking finance company (NBFC) was trading at its highest level since March 2020. It was 5 per cent away from its record high level of Rs 4,923, touched on February 20, 2020, in intra-day trade. READ MORE
Franklin Templeton MF's six shut schemes garner Rs 941 cr in fortnight
Franklin Templeton Mutual Fund on Wednesday said its six shut schemes have received Rs 941 crore from maturities, pre-payments and coupon payments in a fortnight. Franklin Templeton MF shut six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity in the bond market. READ MORE
Top losers on the BSE at this hour
Trading tips :: Shyam Sekhar on investing
One day, your position size of a single stock will be the size of your present portfolio.
Preparing to manage that decision is a long, boring, tedious journey. Work towards that steadily. Else, your dream of making it big will falter in decision making. #investing
NEWS ALERT :: Mold-Tech Packaging to issue 5.5 million shares under rights issue
>> Shares are to be issued at a price of Rs 180 per Rights Equity Share (including a premium of Rs 175 per Rights Equity Share) along with 33,31,980 detachable warrant(s) for cash at a price of Rs 184 per warrant, for every 1 (one) Rights Equity Share allotted in the Issue to the eligible applicants.
Telecom to oil firms: Q2 results give no clear sign of broad revival
There are signs of revival in corporate performance during the July-September quarter of the financial year 2020-21 (Q2 FY21). Economic activity was led by rural performance, which was backed by agro-growth. A sample of 1,286 listed companies (with minimum sales of Rs 1 crore) that announced their financial performance for the quarter under review till November 10 shows improvement year-on-year (YoY), compared to the corresponding quarter of 2019. READ MORE
NEWS ALERT :: Vedanta puts in preliminary EoI for buying govt stake in BPCL, reports PTI
Vedanta says expression of interest for buying govt's nearly 53 per cent stake in BPCL is exploratory in nature
Inconsistent growth across segments to weigh on Godrej Consumer valuations
Despite Godrej Consumer Products (GCPL) delivering double-digit revenue growth in the September quarter (Q2) and its valuations remaining the lowest among peers, investors aren’t rushing to accumulate the stock. The GCPL stock has risen marginally since its results were announced last week and flat over the last three months. READ MORE
Tata Motors hits nine-month high; stock advances 33% in one month
Tata Motors reported a healthy operational performance in July-September (Q2FY21). Consolidated margins were at 12.5 per cent amid return to the double-digit margin in Jaguar Land Rover (JLR) at 11.1 per cent and EBITDA (earnings before interest, taxes, depreciation, and amortisation) breakeven in India passenger vehicles (PV) business. READ MORE
>> Dividend to be paid on the paid-up equity share capital of Rs. 932.81 crores for the financial year 2020-21.
>> The payment of interim dividend shall be made on or before 17.12.2020 to all eligible shareholders.
Q&A | Economic momentum will be lost through 2021: CLSA
Growth in developed economies will weaken in the fourth quarter of calendar year 2020 (Q4-20) and the first quarter of calendar year 2021 (Q1-21) because of the second wave of Covid-19. This is already visible in European data where lockdowns are being re-imposed at the national level. It is only a matter of time before US data softens as state-level lockdowns are now starting to be re-imposed. The consensus is too optimistic on 2020 growth in developed economies for this reason. Growth in emerging markets is likely to be more resilient, as they are more recent in their emergence from the Covid-19 ‘first wave’. READ FULL INTERVIEW HERE
Eric Fishwick, chief economist at CLSA & Anthony Nafte, senior economist at CLSA (Photo: Dalip Kumar)
BROKERAGE VIEW | Emkay Global on Bharat Forge
RATING: BUY | TARGET PRICE: Rs 601
BHFC’s leadership position in automotive forgings, focus on diversification and an expected cyclical recovery in the core segments support our positive view. We have a Buy rating on the name and OW stance in EAP, with a TP of Rs601, based on 25x P/E for the standalone business on FY23E.
Key risks: 1) delay in recovery in domestic/North America CV segments, 2) further downturn in the industrial segments, and 3) adverse currency movement.
BUZZING STOCK :: M&M extends gains, zooms over 11%
BROKERAGE VIEW | HDFC Securities on Eicher Motors
RATING: REDUCE | TARGET PRICE: Rs 2,100
Eicher reported 2QFY21 PAT at Rs 3.4bn (-34% YoY, up sharply QoQ). The OEM has rolled out the ‘Meteor 350cc’ on a new platform along with personalisation options (MIY), which is expected to be a ‘differentiator’. The new launch comes at a time when the competition is increasing – the Honda H’ness CB350 has just been launched. We value the RE business at 23x PE, which is at a 25% premium to the mass market OEMs. The stock is trading at 43.7/29.8x FY21/22E. We set a revised Sep-22 TP of Rs 2,100 (we are raising our FY22/23E by 5%). Key risks: Faster-than-expected economic pick-up, encouraging response to new launches.
NEWS ALERT :: Sadbhav Engineering wins order worth Rs 1,572.3 cr from NHAI
Dhanlaxmi Bank CEO case to test primacy of RBI over banks' shareholders
The removal of Sunil Gurbaxani from the corner room at Dhanlaxmi Bank in a shareholder coup has led the private banking system into uncharted waters.
Should the Reserve Bank of India (RBI) go along with what a bank’s shareholders deem fit by exercising their rightunder the Companies Act? Or should it reinstate a helmsman (in the immediate instance Gurbuxani) to underscore its powers, and the primacy of the Banking Regulation Act (BR Act: 1949), if it were to feel otherwise? READ MORE
Tanla Platforms advances 5%, hits record high as two PE firms pick stake
American Funds Insurance Series A/c International Fund purchased 8.6 million shares or 6.32 per cent stake, while Amansa Investments has acquired 4.08 million shares of 3 per cent stake in Tanla Platforms at price of Rs 391.30 per share. Besides, Mobile Techsol Private Limited, the promoter group, has also increased its stake by buying 1.71 million shares or 1.25 per cent stake in the company. READ MORE
Analysts bullish on mid-and small-caps; expect outperformance in 2021
The S&P BSE Small-cap index has outperformed with a rally of 86 per cent from its lowest intra-day level in March 2020 to 16,003 levels now, the S&P BSE mid-cap index has moved up 70 per cent during this period – mostly in line with the S&P BSE Sensex that has gained around 72 per cent, data show. READ MORE
Aditya Birla Capital: High on diversification, not much on conviction
Nearly two years ago, when Aditya Birla Capital (AB Capital) stock was listed following its demerger with Grasim Industries at Rs 250 a stock, there was a lot of optimism around it as it was the only non-banking finance company (NBFC) with presence across categories – insurance, asset management company (AMC), housing finance (HFC) and pure-play lending. READ MORE
Lakshmi Vilas Bank failed and this time India is getting a rescue right
Another Indian bank has failed, the third collapse of a major deposit-taking institution in 15 months and the first since the onset of the coronavirus pandemic. But instead of allowing a zombie lender to linger after a half-baked rescue, the central bank has wisely decided to put Lakshmi Vilas Bank Ltd. out of its misery. Better still, it’s called upon a foreign institution to take over the assets and liabilities. That should stoke interest of other global banks. READ MORE
IRB Infra InvIT completes second fund raising round by securing Rs 510 cr
Country's first infrastructure investment trust IRB Infra INVIT on Wednesday said it has completed the second installment of its fund raising programme by securing Rs 510 crore.
Infrastructure Trust - Private InvlT, has successfully closed 2nd tranche of fund raising by way of Rights Issue of Units amounting to Rs 510 crore, the company said in an official statement. READ MORE
Mahindra & Mahindra to make new K2 series tractors; stock hits 52-week high
Shares of Mahindra & Mahindra (M&M) hit a 52-week high of Rs 675, up 6 per cent on the BSE in the intra-day deals on Wednesday after the company said it will make new K2 series tractors in Telangana. The stock surpassed its previous high of Rs 666 touched on September 22, 2020. READ MORE
File photo: The logo of Mahindra and Mahindra is seen at a showroom in Mumbai
This hottest India internet stock is surging on back of startup investments
Info Edge India Ltd. climbed to a record on Tuesday and is the top gainer this month on the National Stock Exchange’s 10-member IT index. The company runs Naukri.com, the nation’s leading job-hunting platform, and has investments in at least 23 startups, according to its website. It owns about a fifth of Zomato, the largest Indian web-based food delivery platform that counts Jack Ma’s Ant Group among investors. READ MORE
HDFC twins, Bajaj group stocks have more upside ahead, charts suggest
HDFC Bank Ltd (HDFCBANK): The stock is comfortably trading around the recent all-time high of Rs 1,414.80. The overall trend is highly optimistic with bulls showing significant interest in the range of Rs 1,250 to Rs 1,350 levels. With this surge and firm positive sentiment, the trend is heading towards Rs 1,700 levels in the coming sessions. The support comes in at Rs 1,300 levels. The stock has entered the overbought condition of the Relative Strength Index (RSI), yet the price is not exhibiting any weakness. READ MORE
Larsen & Toubro advances 4% on winning new order from Tata Steel
The order comprises of 41 units of Komatsu HD785-7 (100 Ton Dump Truck), three units of Komatsu WA900-3E0 (9 Cum Wheel Loader) and two units of Komatsu D275A-5R (410HP Crawler Dozer). The scope includes supply of equipment and full maintenance contract for 60,000 hours of equipment operation, it said. READ MORE
Recovery in toll collections, order flows driving IRB Infra's prospects
Infrastructure developers continue to see improving prospects led by rising toll collections, pick-up in execution and good order flows. India's largest road toll operator, IRB Infrastructure Developers' performance for the quarter ending September (Q2), too, saw benefits from sharp increase in toll collections that touched pre-Covid level across portfolio by September end. READ MORE
Market Comment :: V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Market's resilience continues supported by positive economic data, better than expected corporate results, promising vaccine news & sustained FII inflows ( all time monthly high of above Rs 38000 cr in November so far). DIIs have been selling heavily recently but FII inflows are over powering this. As expected and recommended, banks particularly large private sector banks are doing very well. Bank Nifty surged by 22% this month. Presently, there is more value in mid-small-caps
Bank of Baroda, PNB, SBI among top gainers in PSB space
Adani Gas zooms 37% in two days; stock hits fresh record high
The trading volumes on the counter more-than-doubled with a combined 10 million equity shares changing hands on the NSE and BSE till 10:00 am. In comparison, the S&P BSE Sensex was trading flat at 43,959 points. In the past month, the stock has rallied 82 per cent, against a 10 per cent rise in the benchmark index. READ MORE
Morgan Stanley sees Sensex at 50,000 in 2021, raises index EPS
Morgan Stanley expects the benchmark Sensex top the 50,000 milestone by end of next year. The brokerage believes the economic growth cycle is not fully priced in. It has revised upwards the earnings per share (EPS) estimate for Sensex. Earlier, the brokerage had a target of 37,300 for June 2021. READ MORE
Rupee opens lower at 74.49 per US dollar vs Tuesday's close of 74.46/$
BROKERAGE VIEW | Centrum Broking on Ashoka Buildcon
RATING: BUY | TARGET PRICE: Rs 95
We expect tepid core earnings (without other income) for ABL over FY21/22 due to muted revenue growth over FY20-22. Our EPS upgrade of 48.4%/26.3% in FY21/22E is largely led by higher interest income from subsidiaries which in turn is largely non-cash. That said, unadjusted valuations at 8.3x FY22E core earnings are inexpensive and restrict downside. Completion of SBI-M exit from ACL/monetisation of ACL remains a key stock trigger. Maintain Buy with SOTP based price target of Rs 95.
BROKERAGE VIEW | Nirmal Bang Securities on Mahanagar Gas
RATING: BUY | TARGET PRICE: Rs 1,072
We maintain BUY rating on Mahanagar Gas (MGL) with our blended DCF-based target price (TP) of Rs 1,072 as the stock is attractive at current valuation post the recent fall in the stock. We have raised our earnings estimate for FY21E by 80.5% based on the 1HFY21 beat. MGL reported 2QFY21 PAT at Rs 1.44bn, down 46.7% YoY, but was 51.8%/21.91% beat vs NBIE/street estimate.
BROKERAGE VIEW | YES Securities on Spandana Sphoorty Financial
RATING: BUY | TARGET PRICE: Rs 1,000
Current collection efficiency of 93% in October is one of the highest in the industry and non-paying borrowers at 5-6% of AUM among the lowest. By augmenting the Covid provision buffer by Rs1.1 bn in Q2 (cumulative Rs3.3 bn, 6.1% of on-BS portfolio), the co. has insulated itself from the currently visible risk, and thus sees no more provisions if collection trends improve. Without the additional provision, the annualized RoA/RoE stood at 10%/26% for the quarter, as operating cost remained well controlled. We continue to remain positive on the stock and have upgraded price target to Rs 1,000 (earlier Rs 880) as our earnings estimates witness upward revisions (largely from better growth and cost assumptions).
BROKERAGE VIEW | IDBI Capital on Eicher Motors
RATING: HOLD | TARGET PRICE: Rs 2,460
We introduce our FY23 estimates and anticipate revenue/earnings to grow at ~8%/12% CAGR each over FY20-FY23E with EBITDA margin from 19.3%-20.5%. We value RE biz at 23x and 15x for VECV business on account of strong traction from rural/urban areas. Due to recent increase in share price we change our rating to HOLD (earlier SELL) with TP of Rs 2,460 (earlier Rs 1,764).
BROKERAGE VIEW | IDBI Capital on Repco Home Finance
RATING: HOLD | TARGET PRICE: Rs 250
Disbursements for the housing finance sector have improved during the quarter (HDFC reported disbursements at 95%of pre covid levels). However, despite the uncertainties in the sector it is able to garner a spread of 3% with a comfortable liquidity position. We roll-over to FY23E and re-iterate ‘HOLD’ with a new TP of Rs.250 (earlier Rs.187), valuing it at 0.7x P/ABV FY23E.
Lakshmi Vilas Bk hits 20% lower circuit after govt puts it under moratorium
Till 09:17 am, a combined 799,000 equity shares had changed hands on the counter and there were pending sell orders for 35 million shares on the NSE and BSE, exchange data shows. READ MORE
BSE Midcap index continues to outperform, up nearly 0.5%
Wipro trades flat with a negative bias
DHFL up 5%
Lakshmi Vilas Bank hits 20% lower circuit
>> The Reserve Bank of India (RBI) on Tuesday proposed to merge private sector lender Lakshmi Vilas Bank (LVB) with the India subsidiary of Singapore’s DBS Bank, even as LVB was put under moratorium for at least a month by the government.
FIRST TRADE | Nifty Realty gains over 1%
FIRST TRADE | Losers and gainers on the S&P BSE Sensex
At 09:16 AM, the S&P BSE Sensex was trading 83 points, or 0.19 per cent lower at 43,870 levels while NSE's Nifty was trading at 12,860, down 14 points, or 0.11 per cent.
Top gainers and losers on the S&P BSE Sensex at Pre-open
Markets at Pre-open
Markets at Pre-open
Nifty Outlook :: Sumeet Bagadia, executive director, Choice Broking
Nifty has moved above “Ichimoku Cloud” with positive crossover between conversion line and base line which shows the upside movement in the counter. A momentum indicator RSI and MACD both have shown positive crossover on the daily chart which adds more bullishness to the prices.
At present level, the Nifty has good support at 12,560-12,640 range while upside resistance comes at 13,000 levels.
Currency Outlook :: Reliance Securities
>> The Indian Rupee could start on a flat note today as against the greenback as rise in Covid-19 cases in Europe and the US offset positive sentiments surrounding the potential vaccine.
>> US Dollar rebounded this Wednesday morning in Asian trade and could cap gains.
>> The Rupee could likely open around 74.45-74.48 per dollar compared with 74.46 at close on Tuesday.
>> RBI continues to mop up fund inflows and could limit appreciation.
>> Technically, USD-INR Spot pair retreated from 200-DMA which is placed at 74.57 levels. Below this level, we could see downside pressure in coming sessions.
>> Resistance is at 74.65-74.78 & support is at 74.30-74.10 levels. USD-INR Spot pair is expected to trade in a range of 74.20-74.70 levels.
NEWS ALERT :: Cipla signs licensing agreement with Multi G for distribution of their Covid-19 Rapid Antibody test kit
>> Distribution will be done across most Emerging markets and Europe
Alert: Multi G is a Belgium-based firm
Weekly stock picks by Ajit Mishra of Religare Broking
Bata India Limited
Target: Rs 1,490
Stop loss: Rs 1,320
Bata India has been trading in a range for the last seven months, after a sharp slide from its record high. It has made several attempts to surpass the hurdle of the long-term moving average(200 EMA) in the recent past but failed to sustain above the same however it kept forming a higher base. Indications are now in the favor of a steady up move from hereon. We thus advise initiating fresh longs within the mentioned levels. READ MORE
NEWS ALERT :: DLF partners with GIC to launch housing projects in Delhi
(Via NewsRise news Agency)
BROKERAGE VIEW :: MOFSL on Repco Home Finance
CMP: Rs 249 | TP: Rs 325 (+31%) | Reco: Buy
>> Repco Home Finance’s 2QFY21 PBT was up 6% YoY at Rs 1.08b. On the back of a lower tax rate (1.3%) in the base quarter, PAT declined 20% YoY to Rs 808m. The quarter was characterized by a gradual pick up in business volumes, improvement in spreads, and focus on collections.
>> The company created Rs 72m in provisions in 2QFY21. Collection efficiency stood at 93% in Sep’20.
>> On the back of strong spreads and conducive liquidity environment, we upgrade our estimates by 10-12% for FY21E/FY22E. We expect a RoE of 14-15% over FY21-23E and a RoA of 2.4%. We expect the focus on collections to take precedence over growth in the near term. Maintain Buy
BROKERAGE VIEW :: MOFSL on Telecom
>> As per media reports, IDEA is exploring a 15-20% price hike in Dec’20 or Jan’21. We expect BHARTI and RJio to follow suit as both players may not be keen to take the lead on a price hike and face risk of a market share loss or a negative consumer reaction.
>> We have not factored in a material price hike in our model at present. A 20% price hike should increase BHARTI/RJio/IDEA’s ARPU to Rs 178/Rs 167/Rs 140 in FY22E. At 70% incremental margin, EBITDA in FY22E should touch Rs 559b/Rs 559b/Rs 142b, a 16%/22%/30% increase at the consolidated level.
>> Without any tariff hike, we expect BHARTI/RJio to generate post interest FCF of Rs 64b/-Rs 64b, including one-time spectrum renewal cost of Rs 130b/Rs 280b.
>> Although this should provide IDEA with additional cash flow, it would still not be enough to fulfill its obligations. Our workings suggest that IDEA needs 74% ARPU hike to achieve EBITDA of Rs 300b to sufficiently furnish its complete cash obligations sustainably in FY23, including deferred spectrum payments.
>> We continue to remain bullish on BHARTI/RJio with a target price of Rs 650/Rs 900 (for its 66% stake). We continue to maintain IDEA under review due to its liquidity crunch and limited clarity on business continuity.
Market Strategy by Motilal Oswal
>> The Sep-quarter (2QFY21) corporate earnings season was a blockbuster one, with big beats and upgrades across our Coverage Universe. With an upgrade (>5%) to downgrade ratio (<-5%) of 4:1, this has by far been the best earnings season in many years. 63% of the companies in our MOFSL Coverage Universe beat 2QFY21 estimates, while 18% reported below-est. results. This has resulted in the first material earnings upgrade for Nifty EPS estimates in many years. More importantly, corporate commentaries across the sector suggest continued demand recovery in 3QFY21, underpinned by a healthy start to the festive season.
>> Our FY21/FY22E Nifty EPS estimates have been revised up 9%/3.9% to INR497/INR677 (prior: INR456/INR651). We now expect FY21 Nifty EPS to grow 6.9% YoY. The breadth of earnings revision was positive, with an upgrade to downgrade ratio of >4:1. 107 companies in the MOFSL Univer
The stock price has broken out on the daily charts with a surge in the volumes to close at two months high. Short-term trend has turned positive as the stock price is trading above its 5 and 20 day-EMA. Oscillators and Momentum Indicators like RSI, MFI and MACD are showing strength in the stocks. Therefore, we recommend buying Arvind Fashion at CMP of Rs 136 and average at 133 for the target of 151, keeping a Stop Loss at 129 READ MORE
FII/FPI & DII trading activity on NSE, BSE and MSEI
Oil falls as big build in US crude stockpiles raises spectre of supply glut
>> Oil prices fell on Wednesday after a bigger-than-expected build in US crude stockpiles stoked fears for weak fuel demand and a potential supply glut, but hopes that OPEC and its allies will postpone a planned January increase to oil output braked losses.
>> Brent crude futures for January LCOc1 dropped 14 cents, or 0.3%, to $43.61 a barrel having lost 0.2% on Tuesday. US West Texas Intermediate crude for December CLc1 slid 25 cents, or 0.6%, to $41.18 a barrel, reversing a 0.2% gain on Tuesday.
SGX Nifty update
>> At 8:09 am, the index was at 12,886.5 level, down 11 points or 0.09 per cent
Wall Street closes lower as shutdown worries loom
Asia stocks make a sluggish start
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