MARKET WRAP: Benchmarks end flat, Sensex up 42 pts; realty, IT stocks slip

Topics MARKET WRAP | Markets

Equity markets ended a volatile trading session in the positive territory on Monday supported by buying in blue-chip stocks such as HDFC, Reliance Industries, Maruti Suzuki India, and Axis Bank. The benchmark S&P BSE Sensex settled 42.28 points, or 0.1 per cent, higher at 40,487.43 level. Axis Bank (up over 2 per cent) topped the 30-share index as the top gainer, while TCS (down 3 per cent) was the top loser.

On the NSE, the Nifty50 settled at 11,937.50-mark, up 16 points, or 0.13 per cent. 

Sectoral indices ended the session mixed on the NSE. At close, Nifty Realty Index closed with a cut of 1.15 per cent, while Nifty Auto index closed 0.73 per cent higher.

In the broader market, the S&P mid-cap index settled 0.09 per cent higher at 14,680.92, while the S&P NSE small-cap index slipped 0.48 per cent to 13,275.41.

BUZZING STOCKS

Shares of Century Textiles & Industries hit a fresh 52-week high of Rs 515, up 5 per cent on Monday, having surged 9 per cent in the past two trading days, in an otherwise range-bound market on the BSE on expectation of a healthy financial performance going forward. READ MORE

Shares of automobile companies gained on Monday after Maruti Suzuki India (MSI) increased its production in November. At 10:30 AM, the S&P BSE Auto index climbed 1.5 per cent as compared to a flat benchmark S&P BSE Sensex and was the top gainer among BSE sectoral indices. READ MORE

GLOBAL CUES

Asian stocks edged up on Monday, catching some of Wall Street’s momentum after surprisingly strong US.jobs data, although regional gains were capped by concerns about China’s economic slowdown due to the prolonged Sino-US trade war.

Japan’s benchmark Nikkei added 0.33 per cent while MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.27 per cent. China’s Shanghai Composite stood flat and so did Hong Kong’s Hang Seng.

European shares are expected to give up some of the gains made on Friday after the U.S. payrolls data, with pan-European Euro Stoxx 50 futures down 0.14 per cent, German DAX futures slipping 0.04 per cent and FTSE futures losing 0.35 per cent.

(With inputs from Reuters)

3:42 PM IST

3:41 PM IST

3:41 PM IST The benchmark S&P BSE Sensex settled 42.28 points, or 0.1 per cent, higher at 40,487.43 level. Axis Bank (up over 2 per cent) topped the 30-share index as the top gainer, while TCS (down 3 per cent) was the top loser. On the NSE, the Nifty50 settled at 11,936.95-mark, up 15.45 points, or 0.13 per cent. 

3:23 PM IST Indigo Paints' proposed IPO next year is expected to give 3-3.5-fold returns to private equity investor Sequoia. The company's proposed Rs 1,000 crore plan would partially support capex spending of Rs 100 crore every year.   The company has hired an investment bank for the proposed IPO and aims to achieve Rs 3,000 crore in revenue in the next five years. It did not reveal the name of the investment bank. READ MORE

3:10 PM IST

2:55 PM IST -- Buyback at max Rs 75/share

2:52 PM IST Shares of Shakti Pumps (India) (SPIL) hit a 52-week low of Rs 202, down 2 per cent on Monday, having declined 5 per cent in the past two trading days, on the BSE after Care Ratings downgraded the long-term rating of the bank facilities of the company with a negative outlook. The stock has fallen below its previous low of Rs 203 touched on November 18, 2019. READ MORE

2:41 PM IST - Slips 12% in four days on share sale by promtoer.

2:38 PM IST COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%) ADANI TRANSMISSI 331.50 344.45 12.75 4.00 COROMANDEL INTER 510.05 527.85 14.45 2.92 GUJARAT GAS 230.00 231.65 2.65 1.17 ICICI SEC 358.60 364.60 3.55 1.00 SRF 3256.05 3285.25 30.70 0.95 » More on 52 Week High

2:28 PM IST Asian stocks edged up on Monday, catching some of Wall Street’s momentum after surprisingly strong US jobs data although regional gains were capped by concerns about China’s economy due to the prolonged Sino-US trade war. Japan’s benchmark Nikkei advanced 0.3 per cent while MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.3 per cent, with Australian stocks and South Korea’s Kospi up 0.2 per cent and 0.6 per cent, respectively. Oil prices retreated but hovered near recent peaks after OPEC and its allies agreed to deepen output cuts by 500,000 barrels per day in early 2020.   U.S. West Texas Intermediate (WTI) crude slipped 0.4 per cent to $58.94 per barrel, still not far from Friday’s 2 1/2-month high of $59.85 per barrel. (Reuters)

2:22 PM IST -- YES Bank likely in talks with Institutions to make up for shortfall

2:19 PM IST India's real GDP growth in 2019-20 fiscal is expected to be slightly below 5 per cent as the impact of stimulus measures will take time to filter through to the economy, IHS Markit has said. Latest GDP data for July-September quarter showed a significant further moderation in the pace of economic growth to 4.5 per cent, the weakest in six years with a key contributory factor being a slump in manufacturing output. READ MORE

LIVE UPDATES

Sectoral trends at NSE at close


Sensex heatmap at close


Closing Bell

The benchmark S&P BSE Sensex settled 42.28 points, or 0.1 per cent, higher at 40,487.43 level. Axis Bank (up over 2 per cent) topped the 30-share index as the top gainer, while TCS (down 3 per cent) was the top loser.

On the NSE, the Nifty50 settled at 11,936.95-mark, up 15.45 points, or 0.13 per cent. 

Indigo Paint's IPO may fetch 3.5x returns for Sequoia in partial exit

Indigo Paints' proposed IPO next year is expected to give 3-3.5-fold returns to private equity investor Sequoia. The company's proposed Rs 1,000 crore plan would partially support capex spending of Rs 100 crore every year.
 
The company has hired an investment bank for the proposed IPO and aims to achieve Rs 3,000 crore in revenue in the next five years. It did not reveal the name of the investment bank. READ MORE

Prestige Estate Projects dips 5%


NEWS ALERT | Jagran Prakashan board approves share buyback for up to Rs 101.2 cr: BSE filing

-- Buyback at max Rs 75/share

Shakti Pumps hits 52-week low as CARE downgrades bank facilities

Shares of Shakti Pumps (India) (SPIL) hit a 52-week low of Rs 202, down 2 per cent on Monday, having declined 5 per cent in the past two trading days, on the BSE after Care Ratings downgraded the long-term rating of the bank facilities of the company with a negative outlook. The stock has fallen below its previous low of Rs 203 touched on November 18, 2019. READ MORE

NEWS ALERT | HDFC AMC trading lower for fourth straight day, down 5% on BSE

- Slips 12% in four days on share sale by promtoer.

BSE500 stocks that hit 52-week high today

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
ADANI TRANSMISSI 331.50 344.45 12.75 4.00
COROMANDEL INTER 510.05 527.85 14.45 2.92
GUJARAT GAS 230.00 231.65 2.65 1.17
ICICI SEC 358.60 364.60 3.55 1.00
SRF 3256.05 3285.25 30.70 0.95
» More on 52 Week High

Global Markets check

Asian stocks edged up on Monday, catching some of Wall Street’s momentum after surprisingly strong US jobs data although regional gains were capped by concerns about China’s economy due to the prolonged Sino-US trade war.

Japan’s benchmark Nikkei advanced 0.3 per cent while MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.3 per cent, with Australian stocks and South Korea’s Kospi up 0.2 per cent and 0.6 per cent, respectively.

Oil prices retreated but hovered near recent peaks after OPEC and its allies agreed to deepen output cuts by 500,000 barrels per day in early 2020.
 
U.S. West Texas Intermediate (WTI) crude slipped 0.4 per cent to $58.94 per barrel, still not far from Friday’s 2 1/2-month high of $59.85 per barrel.

(Reuters)

NEWS ALERT | YES Bank poised to reject $1.2 bn offer from Canada's Braich: Bloomberg

-- YES Bank likely in talks with Institutions to make up for shortfall

India's real GDP growth in FY20 to come slightly below 5%: IHS Markit

India's real GDP growth in 2019-20 fiscal is expected to be slightly below 5 per cent as the impact of stimulus measures will take time to filter through to the economy, IHS Markit has said. Latest GDP data for July-September quarter showed a significant further moderation in the pace of economic growth to 4.5 per cent, the weakest in six years with a key contributory factor being a slump in manufacturing output. READ MORE

BROKERAGE RADAR | Gati acquisition would heighten risk profile of Allcargo Logistics: ICICI Securities

The acquisition multiples (14.3x EV/EBITDA based on FY19 and 17x based on H1FY20 EBITDA runrate) look inexpensive. The B2B express business under Gati KWE JV (70% stake), remains the key acquisition logic. AGLL management believes that given AGLL’s existing business presence and foray into multimodal logistic parks, Gati’s express portfolio can be a key catalyst. Muted topline growth of ~5% over the past two years and declining margins have ailed Gati’s express business and reflects in RoE/RoCE profile of Gati KWE JV as well as that of the consolidated entity -- which AGLL believes it can reverse. The post-acquisition leverage profile for AGLL worries us. Downgrade to HOLD with a revised target of Rs 97/share (earlier: Rs 131).

An era of central bank shocks has left few options for next downturn

The era of central bank shock and awe is over.
 
More than ten years of crisis fighting -- including this year’s rush to support global growth -- have left policy makers in key economies facing a new decade with few good options to fight the next downturn.
 
Interest rates are either already around historic lows or negative after more than 750 cuts since 2008, spurring concerns they are doing more harm than good. READ MORE

Sudden fall in Sensex


Nifty sectoral indices at this hour


BROKERAGE RADAR | Anand Rathi Research on Consumer Durables

As we roll over our earnings to FY22, Amber remains our top pick in air-conditioning with a target price of Rs 1,631 (earlier Rs 1,248 based on a sum-of-parts model factoring inFY21e). We maintain our Buy rating on Blue Star with a target price of Rs 1,147(earlier Rs 879 based on FY21e earnings). Also,we retain our Hold recommendation on Voltas, with a target price of Rs 760, as the recent run-up in the stock provides limited potential.

Top losers on BSE at this hour


Rupee check


SC orders interim stay on NCLAT order on Orchid Pharma resolution process

The Supreme Court has ordered an interim stay on the National Company Law Appellate Tribunal’s (NCLAT’s) ruling on the resolution of debt-ridden Orchid Pharma.
 
The NCLAT in November set aside the National Company Law Tribunal’s (NCLT’s) approval of a resolution plan by Gurgaon-based Dhanuka Laboratories for Orchid and remitted the matter to the NCLT, observing that it quoted an amount below the liquidation value and could not be approved. READ MORE

Contribution to Sensex's gain today


NEWS ALERT | Bank of Baroda to sell up to 1.04 crore equity shares of UTI AMC via IPO: BSE filing

-- Says, Board of BoB in the proposed initial public offering of equity shares of UTI Asset Management Company Limited by way of an offer for sale of up to 1,04,59,949 Equity Shares held by it, subject to the approval of the Securities and Exchange Board of India (SEBI), and of any other regulatory authority.

NEWS ALERT | Update in Chanda Kocchar vs ICICI Bank case

-- Bombay HC allows Kochhar to add RBI as party to wrongful termination case. 
 
-- ICICI Bank has challenged its maintainability, saying dispute over termination & clawback is contractual and can be resolved through alternative remedies

-- ICICI Bank says action against Chanda Kochhar taken on the basis on Justice Srikrishna Committee report

(As reported by CNBC TV18)
 

Market check | Sharp surge in Sensex


SBI, PNB: Should you buy PSU banks after RBI kept interest rate unchanged?

NIFTY PSU BANK: The index has broken 2532 level, which is its 100-day moving average (DMA) as per the daily chart. This reflects a minor weakness. Going ahead, if ths 50-DMA, which is placed at 2400 levels gets broken, more selling pressure is expected.
 
Currently, both the technical parameters - Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) - are trading with negative crossover and indicate weakness. On the higher side, the 200-DMA located at 2,800 will act as a resistance. READ MORE

Top gainers on BSE at this hour


SPARC zooms 6% after US-based firm withdraws patent infringement complaint

Sun Pharma Advanced Research Company (SPARC) jumped 5.6 per cent to Rs 162.40 on the BSE on Monday after the company said Abraxis Biosciences LLC has dismissed the patent infringement complaint filed against it regarding the company's New Drug Application (NDA) for PICS (Paclitaxel Injection Concentrate for Suspension). READ MORE

BROKERAGE RADAR | Edelweiss Securities on L&T

We cut FY21/22E EPS by 4% to factor in near-term concerns on order inflows. Despite the infra order weakness, strong hydrocarbon order backlog will support growth until FY21, in our view. We maintain Buy with a revised SOTP-based TP of Rs1,559 (Rs1,726 earlier) and UW stance in sector EAP.

NEWS ALERT | NABARD, HUDCO, NHAI, PFC, REC, PGCIL, IRFC, NHPC, NTPC to borrow via Bharat Bond ETF: CNBC TV18

-- Bharat Bond ETF offer size of Rs 7,000 cr with likely greenshoe of Rs 8,000 cr
-- Bharat Bond ETF wil invest in 3-year and 10-year govt securities

BROKERAGE RADAR | HDFC Securities on Mishra Dhatu Nigam (Midhani)

Healthy order book, strong execution with robust operating margin and net margin, strong balance sheet with cash & equivalents of Rs 198cr as on Mar-19 support our positive view on the stock. The stock is available at attractive valuations of 14x FY21E earnings. We recommend BUY at CMP of Rs 151 and add on dips to Rs 139 with sequential targets of Rs 172 and Rs 195 over the next 4 quarters. We have assigned ~18x FY21E to derive TP of Rs 195.

Pharma stocks gain; Divi's Labs, Dr Reddy's, Pirmal Enterprises rise 1.50%

Most pharma stocks were trading in the green in the morning trade on Monday. The Nifty Pharma index was trading over half a per cent higher in a flat market. At 11:27 am, the Nifty Pharma index was ruling 0.84 per cent higher at 8,020 levels with Divi's Labs leading the chart with nearly 2 per cent gains. Piramal Enterprises, Dr Reddy's, and Glenmark Pharma rallied up to over 1 per cent. READ MORE

NEWS ALERT | VA Tech executes project worth Rs 482.2 cr for Chennai Metro Water Supply Board: CNBC TV18


MARKET CHECK


BUZZING STOCK:: Coromandel International up 4%


Maharashtra Seamless surges 4% on bagging order from ONGC

Shares of Maharashtra Seamless rose 3.7 per cent to Rs 373 on the BSE on Monday on receipt of an order from Oil and Natural Gas Corporation (ONGC) worth Rs 500 crore.
 
In an exchange filing, the company said it has bagged order for supply of seamless castings to ONGC. READ MORE

NEWS ALERT | JLR Retail sales up 11.3% at 46,582 units (MoM)


India Vix up 8%


YES Bank off day's low


NEWS ALERT | SBI to cut lending rates by 10 bps across tenors w.e.f Dec 10: CNBC TV18

-- SBI's 1-yr MCLR to be 7.9% 

Alert: Bank has reduced MCLR only for 1-year tenor, not for all

Sensex edges higher


Auto stocks gain as Maruti Suzuki increases production in November

Shares of automobile companies gained on Monday after Maruti Suzuki India (MSI) increased its production in November. At 10:30 AM, the S&P BSE Auto index climbed 1.5 per cent as compared to a flat benchmark S&P BSE Sensex and was the top gainer among BSE sectoral indices. Among individual stocks, Maruti Suzuki India, Tata Motors, and Motherson Sumi rose over 2 per cent each. Eicher Motors, Ashok Leyland, Mahindra & Mahindra, TVS Motor, Hero MotoCorp were all up in the range of 1-2 per cent, while Bajaj-Auto was also trading higher. READ MORE

Dish TV India zooms 15% after clarification on CARE ratings downgrade

Shares of Dish TV India surged 15 per cent to Rs 14.44 on the BSE on Monday after the company said the default in debt repayment was on account of a temporary cash shortfall due to peak payment commitments to suppliers. “The Company’s deferral to service the loan amount is due to bunching of repayment obligations and utilization of funds for other business requirements including, both capital expenditure and payment of operating liabilities to broadcasters and suppliers,” Dish TV India said in a regulatory filing. READ MORE

Gilt funds lose steam after RBI pause on rate cut triggers yield spike

The strong rally seen by gilt funds might come under pressure, following the surprise move by the Reserve Bank of India (RBI) to bring a halt to its policy rate-cut moves to give a fillip to economic growth. Gilt and other government security funds, on Thursday, saw their net asset values (NAVs) decline between 0.6 and 1.1 per cent after the RBI’s pause on rate cuts triggered a spike in G-Sec yields. READ MORE

Nifty FMCG index trades weaker; HUL, Colgate Palmolive top losers


Maharashtra Seamless gains over 2%

-- The company has secured order worth Rs 500 crore from ONGC.


Buzzing stock :: VA Tech Wabag surges 8%


Karvy Stock Broking scandal: Sebi unlikely to provide relief to lenders

The Securities and Exchange Board of India (Sebi) is unlikely to provide any relief to the four embattled financial institutions that had lent to Karvy Stock Broking, which, in turn, had placed client securities as collateral.
 
Following the directions of the Securities Appellate Tribunal (SAT), Sebi last week gave a hearing to HDFC Bank, ICICI Bank, IndusInd Bank, and Bajaj Finance in the matter involving transferring securities that were unlawfully pledged from the accounts of Karvy’s clients. READ MORE

Momentum picks by ICICI Securities


Divergence between market performance, economy disturbing: Julius Baer CEO

Despite the growth momentum slowing down, ASHISH GUMASHTA, chief executive officer, Julius Baer, tells Puneet Wadhwa that he remains constructive on the Indian equity markets and recommends investors to gradually build their investment portfolio. READ FULL INTERVIEW HERE
Ashish Gumashta

Tata Motors up 2%


Auto index gains momentum


Sensex off opening lows


BUZZING STOCK:: Adani Transmission climbs 3%


Omaxe zooms 7%


Metal stocks trade higher in early trade


Market check


Weakness in Nifty Bank index, trades half a per cent lower


Dish TV zooms 8% despite ratings downgrade

--  CARE Ratings has downgraded the company's short and long-term bank facilities to CARE D from CARE A4+.


ITC trades lower

--  ITC said that the company has acquired 11.15 per cent stake in Delectable Technologies.


Maruti Suzuki gains on increase in production

-- Maruti Suzuki India (MSI) increased its production in November by 4.33 per cent, after having reduced output for nine straight months due to lower demand. 


Bharti Infratel slips over 2%

-- Bharti Telecom, a promoter of Bharti Airtel, has sought government nod for the infusion of Rs 4,900 crore investment from Singapore-based Singtel and other foreign entities, a move that would make the country's oldest private telecom operator a foreign entity.


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


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


Market at Pre-open


Market at Pre-open


Rupee opening

Rupee opens lower at 71.29/$ vs Friday's close of 71.19 against the US dollar

Stocks to watch: Maruti, Bharti Airtel, ITC, Punjab & Sind Bank, CG Power

Here's a look at the top stocks that may trade actively in today's trading session -
 
Bharti Airtel, Infratel: Bharti Telecom, a promoter of Bharti Airtel, has sought government nod for the infusion of Rs 4,900 crore investment from Singapore-based Singtel and other foreign entities, a move that would make the country's oldest private telecom operator a foreign entity. 
 
Maruti: Maruti Suzuki India (MSI) increased its production in November by 4.33 per cent, after having reduced output for nine straight months due to lower demand. READ MORE 

Investors weigh options as top firms turn expensive after lopsided rally

Investors are starting to weigh the merits of rotating into small- and mid-sized stocks after a few large companies drove a record-breaking rally in the main equity index.
 
“Leadership in India’s rally has been very narrow,” Tim Moe, chief Asia Pacific equity strategist for Goldman Sachs Group Inc., said last week in Mumbai. “Valuations are at the high end of the range, both in historical terms and relative valuation compared with the region as a whole.” READ MORE

Nifty view & top picks by Prabhudas Lilladher

BUY COLGATE PAL | CMP: Rs 1,480.60 | TARGET: Rs 1,650 | STOP LOSS: Rs 1,420
 
After a decent correction from the peak of Rs 1,640 levels the stock has indicated a trend reversal with a bullish candle pattern to imply positive bias and also with the RSI showing a trend reversal from the oversold zone has signaled a buy. The chart looking attractive and risk reward being favorable, we suggest to buy this stock for an upside target of Rs 1,650 keeping a stop loss of Rs 1,420. READ MORE

Top trading ideas by CapitalVia

Sell: Maruti Suzuki India Limited (Below Rs 6,864)
 
Target: Rs 6,809
Stop loss: Rs 6,914
 
The stock is indicating selling action from major moving averages in daily chart. Moreover, the stock has given a breakout from its support level of 7,000 and might continue to trade in the negative direction until its next support of 6,558. READ MORE

Nifty outlook and stock pick by Angel Broking

Buy Larsen & Toubro
 
Last Close – Rs.1,290.80
 
Justification – This stock has not participated in the current bull run and has now reached its long-term support zone at 1,280 – 1,290 levels. In the recent past, this zone has acted as a strong demand zone resulting in a strong bounce back; in the month of May, the stock prices rallied from the levels of 1,290 to 1,586 levels; whereas in September, the stock prices rallied from 1,290 to 1,550 levels. READ MORE

Bulk deals on BSE as on Friday


Bulk deals on NSE as on Friday


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


Rupee check


Oil check

At 8:17 AM, Brent Crude Futures were trading at $64.22 per barrel mark.

SGX Nifty

At 8:15 AM, the SGX Nifty was trading 3 points lower at 11,951 levels.

Asian Markets check

(Source: Reuters)
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