MARKETS: Financials lift indices; Sensex up 282 pts, Nifty ends at 12,859

Topics Gland Pharma | Vodafone | Idea

Bajaj Finserv ended as the biggest gainer on Sensex - up over 9 per cent to Rs 8,536.50.
Buying in financial counters such as HDFC Bank, Bajaj Finance, and Bajaj Finserv helped benchmark indices settle over 0.6 per cent higher on Friday. 

The S&P BSE Sensex ended at 43,882, up 282 points, or 0.65 per cent while NSE's Nifty ended at 12,859, up 87 points, or 0.68 per cent.

Bajaj Finserv ended as the biggest gainer on Sensex - up over 9 per cent to Rs 8,536.50 while Reliance Industries (down nearly 4 per cent) was the top loser. Of 30 constituents, 23 advanced and 7 declined. 

On a weekly basis, Sensex gained 0.5 per cent while Nifty added 0.68 per cent. 

In the broader market, the S&P BSE MidCap ended 1.22 per cent higher at 16,436.50 levels while the S&P BSE SmallCap index gained 0.77 per cent to 16,183 levels. 

Global markets

World financial markets stalled on Friday as news US Treasury was ending emergency loans programmes dealt a blow to economic recovery hopes just as California announced curfews to try and fight surging coronavirus infections.

In Europe, stocks edged higher as gains in retail and oil shares offset worries about US politics and a stalemate over fresh stimulus measures to support a pandemic-stricken global economy.

In commodities, oil prices were little changed while gold prices were set for a second straight weekly fall as the metal’s appeal came under pressure from promising Covid-19 vaccine trials and news of the US Treasury ending emergency loan programs.

(With inputs from Reuters)


Nifty IT gains 1.4%

MARKET AT CLOSE | Gainers and losers on BSE Sensex


The S&P BSE Sensex ended 282 points, or 0.65 per cent higher at 43,882 levels while NSE's Nifty ended at 12,859, down 87 points, or 0.68 per cent.


Vodafone Idea gains 9%

BROKERAGE VIEW | Centrum Broking on LIC Housing Finance


LICHF earnings were ahead of estimates mainly led by lower provisioning. NII at Rs12.3bn and loan growth at 5% YoY were largely in-line. Overall business saw a strong revival with disbursements surging QoQ though higher repayments is a tad concerning. NIM came in as expected at 2.37% and the funding cost advantage continues with LICHF seeing a ~70-80bps reduction in WACC owing its sovereign rating. Provisions were lower at Rs1.0bn and COVID related provisions stand at Rs1.94bn. Adjusted for the SC order, stage-3 assets would have been 3.0% (reported 2.8%). Collection efficiency has reached 96% and the balance 3-4% of loans could enter restructuring. Due to a shift in provisions from FY21 to FY22 we raise our FY21E RoE from 10.2% to 11.8%. Maintain multiple at 1.4x FY22 ABV with TP of Rs 500. BUY.

Wockhardt, Jammu & Kashmir Bank, GE Power, DHFL locked in upper circuit

Wockhdart was locked in upper circuit of 20 per cent at Rs 393 on the BSE. The stock of pharmaceutical company was trading close to its 52-week high of Rs 412 touched in February 2020. The trading volume jumped over three-fold with a combined 6.3 million shares changing hands. There were pending buy orders for 250,000 shares on the BSE and NSE, exchange data show. READ MORE 

Ashok Leyland falls nearly 5%

Pharma stocks slip in a strong market

InterGlobe Aviation dips 2% on report Maharashtra govt may halt flight operations b/w Delhi and Mumbai

>> As per TV reports, Maharashtra govt is holding a meeting to discuss if flight ops between the cities need to be stopped in light of rising Covid-19 cases.

Alert: Delhi is seeing third wave of Covid-19 while Maha govt expects second wave in Maharashtra by January.

Ratnamani Metals soars 31% in 8 days on winning orders worth Rs 140 crore

The company, on November 13, said that it has received a domestic order worth Rs 140 crore in carbon steel (CS) division for the supply of CS pipes for oil & gas sector. The order has to be executed between January, 2021 and May, 2021, it said. READ MORE

BROKERAGE VIEW | Edelweiss Securities on BEL


We perceive improving traction on bunching up of large value complex systems (surface-to-air missiles), apart from higher service/upgrade orders posing upside risk to FY21-23E orders. In our view, BEL seems more capable to surprise the Street with better return/growth led by targeted policy action and high degree of agility/fungibility in capabilities. Maintain ‘BUY’ given niche/better returns potential.

BUZZING STOCK | Graphite India jumps 15%

Bajaj twins, Titan lead Sensex gainers


Most PMS schemes underperform Nifty50 in Oct with avg returns of 0.85%

Ninety per cent of the 190 PMS strategies have underperformed the Nifty50 in October with average returns of 0.85 per cent against 3.5 per cent for the benchmark. Top performing strategies in the month include Alder Capital PMS (7.1 per cent), Marcellus’ Consistent Compounders (6.7 per cent) and Trivantage Capital Management’s Super Six (6.7 per cent), data from PMS Bazaar shows. READ MORE

Fund managers ask govt to take steps for addressing poor show by PSU stocks

"Many of the PSU stocks today are available at deep value and much below their intrinsic value. Most of these names are sector leaders and are companies which are fundamentally sound given their inherent strength in their respective sector. Given the prevailing low interest rate environment, a combination of buy back, dividend, coupled with no further divestment is likely to help these names to recover to their intrinsic values," said S Naren, Chief Investment Officer (CIO), ICICI Prudential Mutual Fund (MF). READ MORE

ITC, TCS: Trading strategies for defensive stocks in a volatile session

Defensive stocks such as information technology (IT), and pharma and have given stellar returns in the calendar year 2020. On a year-to-date (YTD) basis, the S&P BSE Information Technology index has gained 37 per cent while the S&P BSE Healthcare index has rallied 46 per cent. In comparison, the S&P BSE Sensex has gained 7.3 per cent during the period, exchange data show. READ MORE 

Narayana Hrudayalaya surges 9%, hits record high in a range-bound market

In July-September quarter (Q2FY21), Narayana Hrudayalaya had reported healthy operational performance sequentially with consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) of Rs 37.2 crore as against a loss of Rs 86.3 crore in Q1FY21. EBITDA margins, on the other hand, were at 4.5 per cent as against -23.1 per cent in Q1FY21 and 14.8 per cent in Q2FY20. Consolidated operating income grew 52.7 per cent to Rs 600.7 crore from Rs 393.5 crore in previous quarter. READ MORE

SpiceJet stock flies high on Boeing 737 MAX return, increasing air travel

The return of the 737 MAX, say analysts, will act as a game-changer. Once the 737 MAX takes to the skies, SpiceJet should start getting incentive for every aircraft as part of the sales and lease-back agreement of its aircraft order. Since the aircraft is high on fuel-efficiency, its return will positively impact the airline’s already stretched balance sheet. READ MORE

BUZZING STOCK :: Wockhardt zooms 20%

Blue Dart gains as economy reopens, demand from e-commerce segment grows

Blue Dart Express has been one of the biggest gainers in the BSE500 index, appreciating 30 per cent over the past month. Reopening of the economy and a spurt in demand from the e-commerce segment have led to an improvement in realisations and volumes. The stock has seen the highest earnings revision for FY22 among BSE 500 companies, with upgrades pegged at 58 per cent READ MORE

Sensex Heatmap at this hour

Bank of Baroda: With loan recast hazy, strong re-rating few quarters away

If State Bank of India’s September quarter (Q2) results stunned the Street, Bank of Baroda’s (BoB) performance was no less. With over five per cent loan growth and 15 per cent growth in retail credit — aiding 128 per cent year-on-year (YoY) increase in net profit — the good show helped the stock gain over 11 per cent after Q2 results. READ MORE

Titan Co trades 3.6% higher

Market Voice :: Shyam Sekhar on risk perception

Nestle India gains 3% in subdued market; trades at four-month high level

Shares of Nestle India were in focus, hitting four-month high of Rs 17,500, up 3 per cent on the BSE on Friday in otherwise subdued market. The rise comes on expectation of higher growth by the company going forward. The stock of packaged foods company was trading at its highest level since July 2020. It had hit a record high of Rs 18,301 on April 17, 2020. In comparison, the S&P BSE Sensex was trading flat at 43,600 points at 11:06 am. READ MORE

ELSS :: Don't let poor three-year returns deter you from investing

Investing for tax saving is likely to be one of your top priorities in the coming days. These investments should not be deferred entirely till the fourth quarter as you could come under finan­cial pressure then. One of the options you should consider is tax-saver mutual funds (also called equity-linked saving schemes or ELSS). READ MORE

Trading tips :: Shankar Sharma on value investing

Commodity Heatmap

BUZZING STOCK | Inox Wind surges nearly 13%

MARKET CHECK | Sensex down over 80 pts

Top losers on the BSE at this hour

9 of 11 Nifty Bank constituents trade in the red

Bharti Infratel gains 7% after it completes merger with Indus Towers

"The Board has allotted 757.8 million equity shares of Rs 10 each to the Vodafone group and 87.51 equity shares of Rs 10 each to PS Asia Holding Investments (Mauritius) Limited (Providence) aggregating to 28.12 per cent and 3.25 per cent, respectively in the post-issue share capital of the company," Bharti Infratel said in the filing. READ HERE

BROKERAGE VIEW | ICICI Securities on Mishra Dhatu Nigam


With the current utilisation stretched through the year, Rs10bn revenue target for FY22 appears realistic. Also, as focus on indigenisation grows, the management expects to substitute high-value super alloy imports of ~Rs7bn p.a. (current revenue contribution from the same at Rs500mn-600mn p.a.). Super alloys yield higher realisations compared even to maraging steels. Maintain BUY with a target price of Rs 280/share.

BROKERAGE VIEW | Centrum Broking on SpiceJet


SpiceJet’s Q2FY21 net loss was curtailed at Rs1.13bn, lower than estimate of Rs1.8bn due to lower employee costs and higher other income. Cargo revenue grew by 137% yoy to Rs3.3bn led by increased thrust on the business. Revenue declined 63%yoy to Rs10.6bn and EBITDAR came in at Rs2.4bn below estimate of Rs2.7bn. Total ASK declined 71% yoy to 2.2bn, RPK declined 76.2%yoy to 1.6bn with domestic load factor stood at 73%. Ticket yield grew by 13.7%yoy to Rs4 (down 11%qoq) while RASK on reported basis grew 21%yoy to Rs4.81 driven by higher other income. 

BROKERAGE VIEW | Prabhudas Lilladher on Bharat Electronics


Given BEL’s decent 1HFY21 performance, we believe company not only maintained profitability but has very well maintained its balance sheet. Though working capital stress continued in 1H due to delay in payments from PSU’s, we expect it to improve in 2H given improvement in the overall economic activity. Based on healthy 1H and optimistic outlook we have increased our revenue/PAT estimate by 5%/9%/12% and 10%/11%/14% for FY21E/22E/23E. We have upgraded the stock to Accumulate from HOLD with revised TP of Rs 110 (earlier TP Rs 99).

BROKERAGE VIEW | IDBI Capital on Wipro


We introduce FY23 financials and forecast revenue (US$)/EPS CAGR of 6.5%/7.1% over FY21-23E. We upgrade the stock to ACCUMULATE vs. HOLD earlier with new TP of Rs 366 based on PER of 18x FY23E which is near to the top-end of the 1-yr forward PER range of 10x-21x in the last five years.

BROKERAGE VIEW | Nirmal Bang Securities on Dabur India


Going ahead, Dabur would continue to work on its core portfolio, expanding distribution and strengthening its market share. At the current market price (CMP), the stock trades at 53.9x/46.3x/41.9x FY21E/FY22E/FY23E EPS as we build in 12.1% EPS CAGR over FY20-23. We value the company at 48x September FY22 EPS, based on its strong execution and ahead-of-the-market growth in a difficult environment, arriving at a target price (TP) of Rs 555. Maintain Accumulate. 

Top gainers on the BSE at this hour

Gland Pharma makes decent debut, shares list at 14% premium vs issue price

Shares of Gland Pharma made a decent debut on the bourses as they listed at Rs 1,710, a 14 per cent premium against the issue price of Rs 1,500 per share on the National Stock Exchange (NSE) on Friday. On the BSE, the stock opened at Rs 1,701, 13 per cent higher against its issue price. It moved higher to Rs 1,740 later and was trading at Rs 1,728, 15 per cent above its issue price at 10:01 am. READ MORE 

MARKET COMMENT :: Chris Wood of Jefferies

The near-term outlook for the US economy is obviously deteriorating given the growing reality of localised lockdowns and the continuing impasse in Washington over further fiscal stimulus. This means it makes sense to take a look again at credit risk, an area largely ignored since the spring by the Fed’s perceived underwriting of it. Still that Fed support does not extend to the high yield era in its entirety. Shorting high-yield debt is probably as good a way as any right now to hedge long cyclical equity exposure.
Investors can expect a further increase in the Pandemic Emergency Purchase Programme (PEPP) at the ECB monetary policy meeting on 10 December. The ECB’s actions will be designed to encourage governments to continue to run sizable budget deficits, while at the same time sending the signal that the ECB government bond buying will absorb much of that debt issuance.

Chris Wood

Crypto buzz :: Currencies may outrun other asset classes over 2 yrs

Cryptos are speculative stores of value. Coins are unique codes, not fiat currency backed by central banks. A coin can be broken up into fractions, each fraction defined by its unique code. Every crypto transaction is verified by a peer-process of blockchain matching, to see if a given coin is valid, if it is contained in a given wallet (the wallet-owner may be anonymous), and a given coin is not used in two transactions at the same time. READ MORE

Rupee Opening

Rupee opens at 74.13 per US dollar vs Thursday's close of 74.27/$

NEW LISTING :: Gland Pharma lists at 14% premium

Bharat Electronics surges 12% in two days on strong management commentary

For April-September period (H1FY21), BEL had reported 18 per cent year-on-year (YoY) decline in its consolidated net profit at Rs 443 crore, while total revenue from operations remained flat at Rs 4,871 crore over the previous year quarter. The order book stood at Rs 52,148 crore as on October 1, 2020. BEL is zero debt company and is able to maintain working capital without borrowing. READ MORE

NBFCs gain in trade

Adani Gas zooms over 7%, hits 52-week high

TBZ sees sharp upmove

SpiceJet surges another 5%

BSE Telecom index gains 0.9%

Vodafone Idea rises over 3%

FIRST TRADE | Nifty Realty gains over 2%

FIRST TRADE | Gainers and losers on the S&P BSE Sensex


At 09:18 AM, the S&P BSE Sensex was trading 234 points, or 0.54 per cent higher at 43,833.50 levels while NSE's Nifty ended at 12,810, up 38.5 points, or 0.3 per cent.

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

Markets at Pre-open

Markets at Pre-open

FII/FPI trading :: View by Reliance Securities

>> Foreign fund inflows into the domestic equity markets could also help the local unit. Investments into the domestic equity and debt markets has already crossed $6 billion this month and there is still about 1 week of trading left in the month.

>> However, these flows are being continuously mopped up by the central bank, which could limit appreciation bias of Indian rupee.
>> Markets are also factoring in that the Federal Reserve may further loosen monetary policy in December, as fiscal stimulus plans remaining uncertain.

Currency Outlook :: Reliance Securities

>> The Indian rupee could start this Friday on a stronger note as against the greenback as the Dollar fell yesterday supported by signs of movement on a stimulus deal in Washington.

>> The Rupee could open around 74.11-74.12 per dollar compared with 74.27 at close on Thursday. Meanwhile, NDF is at 74.1101/74.1106 this Friday morning.

>> Technically, USDINR Spot holds its downside momentum near 100-DMA which is placed at 74.14 levels indicating upside push from these levels. However if it sustains above 21-DMA near 74.22 levels will continue sideways to marginal upside momentum up to 74.34-74.55 levels. On the other hand, a trade below 100-DMA will pull the pair lower towards 73.95 levels.

>> USDINR Spot is expected to trade in a range of 74.00-74.45 levels.

Nifty Outlook :: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

Nifty took a breather after rallying for last 14 days and fell 1.39 per cent on Thursday. The index has now formed the formation of an "inverted hammer", suggesting profit booking by investors in the market. Based on that, the Nifty would correct and may fall in the near future. However, the Nifty needs to trade below the 12,800 levels.

Activity above the level of 12,850 and elimination of the level of 12,970 levels would lead to an immediate march on the level of 13,100/13,200. Closing below the level of 12,780 has opened the door for Nifty to fall to 12,500/12,450 levels.

F&O Strategy :: Sneha Seth, Derivatives Analyst at Angel Broking)

In the November series, both the indices gave a spectacular move with addition of good amount of longs. However, in the previous week's rally, longs were missing in the banking index. Stronger hands continued their buying streak in equities and they are net buyers of Rs 41,210 crores which clearly dictates their optimism in Indian equity market.

In options front, decent writing was seen in 12,900 and 13,000 call options along with decent build-up in 12,500-12,700 put options. Maximum open interest concentration for the monthly series is placed at 13,500 call and 12,500 put options. Now, in yesterday's fall we did see some short formation, but the quantum wasn't significant. Considering this development, we believe there is a decent possibility of further profit booking in coming sessions as we heading towards the monthly expiry week. As far as levels are concerned, 12,900-13,000 may act as a hurdle now; whereas, support is placed around 12,400-12,500 levels.

BROKERAGE VIEW :: MOFSL on Bharat Electronics

CMP: Rs 103 | TP: Rs 130 (+26% ) | Reco: Buy

>> On the back of strong performance in 1HFY21, we increase our FY21E/FY22E/FY23E EPS by 5%/3%/6%. We forecast revenue/EBITDA/PAT CAGR of 11%/7%/8% over FY20-23E. At the CMP, the stock trades at FY22E/ FY 23E P/E of just 12x/11x despite having a RoE/RoCE of ~17%/18%, dividend yield of ~3.5% and FCF yield of 5-7%. We maintain our Buy rating, but raise the TP to INR130/share from INR116/share earlier, based on 15x Mar’22E EPS v/s oneyear forward long-term average multiple of 15.8x. Key risk to our rating includes working capital deterioration


CMP: Rs 254 | TP: Rs 335 (+32%) | Reco: Buy

>> As guided by one of its promoters – GAIL, commissioning of three fertilizer plants along the Jagdishpur-Haldia-Bokaro-Dhamra pipeline (JHBDPL) and connectivity to refiners on Urja-Ganga pipeline would aid GAIL in de-risking US HH contracts by bringing ~10mmscmd of volumes currently sold abroad to India.

>> Being of the opinion that promoter-led offtake would continue to aid strong utilization rates at Dahej, we reiterate a Buy.

>> Return profile for the company remains strong with a RoE/RoCE at 24-27%/21- 25% for FY21-23E. The stock trades at 12.1x FY22E EPS of INR21.3 and 6.9x FY22E EV/EBITDA. We value PLNG on a DCF basis to arrive at a fair value of INR335

Top stock picks by Nilesh Jain of Anand Rathi Shares

The stock surpassed its previous swing high and also reclaimed its 200-DMA placed at Rs 570 levels. It has also provided a fresh breakout from a symmetrical triangle formation and a conservative target for the same is coming around Rs 650 levels. The momentum indicators and oscillators are in the buy mode on the daily as well as weekly scales which hints of further positive momentum in the counter. READ MORE

Bear spread strategy on Asian Paints

Buy Asian Paint 2160 Put at Rs 35 & simultaneously sell 2100 Put at Rs 14
Lot Size 300.
Cost of the strategy Rs 21 (Rs 6300 per strategy)
Maximum profit Rs 11700 If Asian Paint closes at or below 2100 till 26 November expiry.
Breakeven Point Rs 2139 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

SGX Nifty update

>> At 8:00 am, the index was at 12,794 levels, up 21 points.

Asian markets check

Source: Reuters

Wall Street on Thursday

Source: Reuters

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