MARKET WRAP: Sensex climbs 186 pts; PSBs advance, Vodafone Idea zooms 35%

The Bombay Stock Exchange | Photo: ANI
Benchmark indices ended with nearly half a per cent gains on Tuesday amid buying in counters such as Reliance Industries (RIL), Bharti Airtel, Axis Bank, HDFC Bank, and Infosys. Besides, PSU bank stocks continued to rally post the Supreme Court judgement on Essar Steel resolution in favor of financial creditors.

The S&P BSE Sensex added 186 points or 0.46 per cent to settle at 40,470. With over 7 per cent gain, Bharti Airtel emerged as the biggest gainer on the index while YES Bank (down over 2.50 per cent) was the top loser. Of 30 stocks, 11 ended in the green and rest 19 in the red.

On the NSE, the broader Nifty50 index ended at 11,940 levels, up 57 points or 0.47 per cent.

Volatility index India VIX slipped over 2 per cent to 15.42 levels. 

In the broader market, the S&P BSE MidCap index lost 7 points or 0.05 per cent to end at 14,830 whereas the S&P BSE SmallCap index added 42 points or 0.31 per cent to settle at 13,405.

Market breadth was in favour of declines as out of 2,732 companies traded on the BSE, 1,387 declined and 1,154 advanced while 191 remained unchanged.

SECTOR WATCH 

PSU bank stocks rallied the most with the Nifty PSU Bank index surging around 4 per cent to 2,589. Nifty Bank rose nearly 1 per cent to 31,236 levels. On the flip side, metal, FMCG and auto stocks slipped in the trade. 

BUZZING STOCKS

Reliance Industries (RIL) on Tuesday became the first Indian company to cross the market capitalisation of Rs 9.50 trillion after the company's stock rallied nearly 4 per cent intra-day to hit a fresh all-time high of Rs 1514.95 on the BSE. The stock ended at Rs 1509.80, up 3.50 per cent. 

Vodafone Idea and Bharti Airtel zoomed in the trade after the two firms announced they will hike tariffs, starting December 1. Shares of Bharti Airtel ended at Rs 439 on the BSE, up over 7 per cent while Vodafone Idea settled 35 per cent higher at Rs 6 apiece on the BSE.   

GLOBAL MARKETS 

Asian share markets were mixed in subdued trade on Tuesday, pending clearer news on whether US-China negotiations will reach a preliminary accord to end the prolonged trade war between the world’s two largest economies. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent, with Shanghai blue chips gaining 0.6 per cent and Hong Kong’s Hang Seng up 1 per cent.

Japan’s Nikkei shed 0.4 per cent and South Korea’s Kospi 200 dropped 0.5 per cent, while volumes were light across the board.

E-Mini futures for the S&P 500 were 0.1 per cent higher and European futures also pointed to a higher open, with EUROSTOXX 50 futures trading 0.3 per cent higher.

In commodities, oil prices fell for the second straight day. 

(With inputs from Reuters)

3:43 PM IST

3:43 PM IST Bharti Airtel, RIL among key Sensex gainers

3:42 PM IST

3:38 PM IST The S&P BSE Sensex added 186 points or 0.46 per cent to end at 40,470-mark while NSE's Nifty50 index ended at 11,940, up 56 points or 0.47 per cent.

3:14 PM IST The Ashok Piramal Group company faces high refinancing risk because of its debt repayment obligations (excluding collection-linked payments) aggregating to Rs 1,167 crore in the next twelve months, ICRA said. READ MORE  

2:56 PM IST -- GoM to approve PSU where govt will reduce stake below 51% -- List of PSUs could be presented before Cabinet in the next meeting (expected tomorrow).

2:51 PM IST

2:44 PM IST

2:40 PM IST Shares of Bajaj Electricals continued to remain under pressure, hitting an over two-year low of Rs 309, down 3 per cent on the BSE on Tuesday after the rating agency ICRA downgraded the company’s credit rating due to poor earnings. The stock of household appliances hit its lowest level since August 2017. In the past two weeks, it has underperformed the market by falling 20 per cent on weak September quarter (Q2FY20) earnings. READ MORE

2:23 PM IST

2:17 PM IST Passenger vehicle retail sales jump 11% in October on festive demand. Source: PTI— Business Standard (@bsindia) November 19, 2019

2:15 PM IST COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%) ALKEM LAB 2121.00 2149.00 21.45 1.02 BAJAJ FINSERV 9153.60 9188.20 47.20 0.52 BHARTI AIRTEL 432.80 435.95 23.65 5.78 CHOLAMAN.INV.&FN 327.50 333.90 -2.20 -0.67 CREDITACC. GRAM. 823.55 837.90 30.50 3.85 » More on 52 Week High

LIVE UPDATES

PSU banks gained ground in trade today


Sensex heat map

Bharti Airtel, RIL among key Sensex gainers



Index watch


CLOSING BELL

The S&P BSE Sensex added 186 points or 0.46 per cent to end at 40,470-mark while NSE's Nifty50 index ended at 11,940, up 56 points or 0.47 per cent.

ICRA downgrades Peninsula Land's debentures to 'C', cites debt servicing

The Ashok Piramal Group company faces high refinancing risk because of its debt repayment obligations (excluding collection-linked payments) aggregating to Rs 1,167 crore in the next twelve months, ICRA said. READ MORE  

NEWS ALERT | GoM on divestment to okay list of PSUs that are up for divestment: sources to CNBC TV18

-- GoM to approve PSU where govt will reduce stake below 51%

-- List of PSUs could be presented before Cabinet in the next meeting (expected tomorrow).

Market check | Sensex pares gains


NEWS ALERT | Morgan Credits, Rana Kapoor, YES Cap sell remaning 0.8 per cent stake in company: CNBC TV18


Bajaj Electricals extends fall on credit rating downgrade, weak Q2 results

Shares of Bajaj Electricals continued to remain under pressure, hitting an over two-year low of Rs 309, down 3 per cent on the BSE on Tuesday after the rating agency ICRA downgraded the company’s credit rating due to poor earnings. The stock of household appliances hit its lowest level since August 2017. In the past two weeks, it has underperformed the market by falling 20 per cent on weak September quarter (Q2FY20) earnings. READ MORE

NEWS ALERT | IDBI Bank sells IDBI Asset Management to Muthoot Finance: CNBC TV18


NEWS ALERT

BSE500 stocks that hit 52-week high today

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
ALKEM LAB 2121.00 2149.00 21.45 1.02
BAJAJ FINSERV 9153.60 9188.20 47.20 0.52
BHARTI AIRTEL 432.80 435.95 23.65 5.78
CHOLAMAN.INV.&FN 327.50 333.90 -2.20 -0.67
CREDITACC. GRAM. 823.55 837.90 30.50 3.85
» More on 52 Week High

NEWS ALERT | GoM to study pruning of tax slabs from 4 to 3: govt official to CNBC TV18

-- Govt considering three slabs of 8, 18 and 28 per cent

-- Also to study low availability of compensation funds

NEWS ALERT | Centre has not paid GST compensation to states for past 2 months: govt official to CNBC TV18

-- Govt might use Consolidated Funds of India to make payment

-- States have begun writing to govt seeking funds to do requisite expenditure

Asian Markets check

Asian share markets were mixed in subdued trade on Tuesday, pending clearer news on whether U.S.-China negotiations will reach a preliminary accord to end the prolonged trade war between the world’s two largest economies.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent, with Shanghai blue chips gaining 0.6 per cent and Hong Kong's Hang Seng up 1 per cent. Australia's S&P/ASX 200 also rose, to close 0.7 per cent higher. However Japan's Nikkei shed 0.4 per cent and South Korea's Kospi 200 dropped 0.5 per cent, while volumes were light across the board.

E-Mini futures for the S&P 500 ESc1 were 0.1 per cent higher and European futures also pointed to a higher open, with EUROSTOXX 50 futures trading 0.3 per cent higher.

(Reuters)

MARKET UPDATE:: PSU banks rally; Corporation Bank, UCO Bank up 20%

-- - Out of top BSE500 gainers, eight are PSU banks 

Heatmap: S&P BSE Sensex


Bharti Infratel near day's high, up 7%


BUZZING STOCK:: Yes bank dips 3%


BROKERAGE RADAR | ICICI Securities on NBCC

NBCC enjoys a unique business model and strong order book position. However, a delay in commencement of its key redevelopment projects and with a significant portion of the OB currently stuck up, execution has taken a backseat substantially. Hence, we cut our estimates significantly and now expect consolidated revenues to grow at a CAGR of 4.1% to Rs 10,784.1 crore in FY19-21E. Hence, we maintain HOLD recommendation on the stock with a target price of Rs 37/share (20x FY21E EPS).

Reliance Industries logs fresh all-time high, hits Rs 9.5 trillion m-cap

Reliance Industries (RIL) today became the first Indian company to cross the market capitalisation of Rs 9.50 trillion after the company's stock rallied over 3 per cent intra-day to hit a fresh all-time high of Rs 1,508.45 on the BSE. RIL jumped 3.3 per cent to Rs 1,508.45, surpassing its previous high of Rs 1,490 touched on October 31, 2019 in intra-day trade. At 12:39 pm, the Mukesh Ambani-led RIL had the market-cap of Rs 9.54 trillion, BSE data shows. READ MORE

NEWS ALERT | Tentative date for closure of Malaysia unit on or before June 30, 2020: Advanced Enzyme Tech

Alert: The financials of the said wholly owned subsidiary, as on March 31, 2019 -
 
a. Turnover/Revenue : NIL
 
b. Total Income: Rs 3.13 million, which is around 0.07% of total income of the Company at consolidated level.
 
c. Net Worth: Rs 3.81 million

MARKET CHECK | Tata Steel trades at day's low


Rupee check


IPO ALERT | CSB Bank fixes Rs 193-Rs 195 as price band

-- IPO to be launched on Nov 22

-- While 75 per cnet of the offer is kept aside for qualified institutional buyers (QIBs), 15 per cent is reserved for non-institutional investors and 10 per cent for retail investors.

-- CSB Bank says Fairfax will continue to hold about 50% stake in the bank after listing. Fairfax will have to reduce stake to 15% in 15 years as per RBI norms

MARKET CHECK:: Sensex up over 200 pts


Contribution to Sensex's gain today


Sector watch | Nifty PSB index gains the most


Consumption stocks zoom in 10 years despite fall in consumer spend

The Nifty Consumption index, a barometer of companies that represent the domestic consumption sector, including consumer non-durables, healthcare, auto, telecom services, pharmaceuticals, hotels, media & entertainment, surged nearly 228 per cent in the last 10 years and has outperformed the frontline Nifty50 that moved up nearly 138 per cent during this period.
 
Nearly all stocks that comprise the index, except Tata Power that dipped 56 per cent, have given stellar returns. Page Industries, Havells India, Britannia Industries, Titan Company and TVS Motor Company have jumped a huge 1,475 per cent to 3,230 per cent on an absolute basis during this period. Of the 25 stocks that comprise the index, 16 have given a three-digit return, ACE Equity data show. READ MORE

Buzzing | Reliance Ind hits new high


JSPL-Sarda Mine Case :: SC defers hearing over movement, sale of iron ore of Rs 2K cr by JSPL: CNBC TV18

-- Hearing deferred to December 3

BROKERAGE RADAR | Emkay Global Financial Services on Consumer Durables sector

The consumer durables space has seen a significant valuation uplift over the past five years. In general, we are of the view that there is limited room for a major multiple expansion. Going forward, superior valuations should be accorded to companies that can drive: 
 
1) market share improvement/retention, newer product launches, and distribution reach expansion; and 
 
2) simultaneous delivery of strong cash flows and return ratios.

Proposed amendments to Companies Act may include easier rights issue norms

Proposed amendments to the Companies Act are said to reportedly facilitate easier norms for fund-raising through the use of rights issues. The move comes even as the use of the route has seen record amounts raised during the financial year.
 
The total amount of money raised through the route is Rs 52,002 crore. This is the highest since at least 1990-91, shows data from primary market tracker Prime Database. The previous high was reached in 2007-08, when companies had raised Rs 32,519 crore READ MORE

Intraday Picks by Reliance Securities

POWERGRID (PREVIOUS CLOSE: 191) BUY
 
For today’s trade, long position can be initiated in the range of Rs 187- 189 for the target of Rs.195 with a strict stop loss of Rs 186.
 
VOLTAS (PREVIOUS CLOSE: 714) SELL
 
For today’s trade, short position can be initiated in the range of Rs 720- 725 for the target of Rs.695 with a strict stop loss of Rs 730.

Momentum Picks by ICICI Securities


Corporation Bank surges 68% in three days post Essar Steel ruling

Shares of Corporation Bank were locked in 20 per cent upper circuit at Rs 26.45 on the BSE on Tuesday, thus zooming 68 per cent in past three trading days, after the Supreme Court ruled in favor of financial creditors in its verdict on Essar Steel resolution . The state-owned lender's stock price has soared 94 per cent from its 52-week low of Rs 13.60 touched on October 15, 2019. READ MORE

Indian shadow banks remain weak as credit crisis continues unabated

Among four indicators compiled by Bloomberg News covering areas including liquidity and share performance, three were stuck in the same position as the previous month, with two at levels indicating weakness.
 
Another gauge showed total outstanding debt increased at 50 financial firms and other companies impacted by the crisis, as banking-system liquidity remained buoyant given the central bank’s monetary easing. READ MORE

Automobile stocks trade under pressure

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%)
TATA MOTORS 169.60 171.85 169.05 -0.45 -0.26
TATA MOTORS-DVR 78.05 79.40 77.60 -0.50 -0.64
M & M 565.75 575.40 565.75 -7.40 -1.29
HERO MOTOCORP 2479.10 2529.80 2470.00 -22.80 -0.91
MARUTI SUZUKI 7078.00 7200.00 7052.65 -21.60 -0.30
ESCORTS 661.60 663.15 654.90 1.70 0.26
TVS MOTOR CO. 449.70 456.25 446.50 -2.35 -0.52
BAJAJ AUTO 3139.45 3160.00 3123.75 -17.95 -0.57
HIND.MOTORS 5.57 5.65 5.57 -0.06 -1.07

Click here for full list

Sterling and Wilson Solar stock hits new low, tanks 42% in three days

Shares of Sterling and Wilson Solar (SWSL) were frozen in the lower circuit band for the third straight day, down 10 per cent at Rs 289 on the BSE on Tuesday, as the promoters failed to repay loan and requested the company to consider a revised repayment schedule for the balance outstanding amount. READ MORE

BUZZING STOCK:: PNB Housing Finance jumps over 9%


Nifty Private Bank index is trading 0.6 per cent higher


NEWS ALERT | Videocon receives 12 EoI under IBC: sources to CNBC TV18

-- Vedanta, GAIL, Dixon India, Haldiram's, and Indonedia's Polytron among suitors

-- Other EoIs, received from small firms, may not be accepted

-- Suitors may be given time till Dec to finalise bids

Alert: EoI is Expression of Interest

        : IBC is Insolvency and bankruptcy Code

        : Videocon admitted to IBC last year; owes over Rs 20,000 cr to lenders

Buzzing | Vodafone Idea surges 20%

-- The stock gained 21% intra-day today, and has zoomed 106% from Friday's low of Rs 2.61 on BSE.


Zee Ent slips 3% as Brickwork downgrades preference shares, issuer rating

Shares of Zee Entertainment slipped up to 2.7 per cent to Rs 286 on the BSE on Tuesday after Brickwork Rating agency downgraded the company's 6 per cent Cumulative Redeemable Non-Convertible Preference Shares and the Issuer rating.
 
The revised rating for both the instruments stand at 'BWR AA+', down from 'BWR AAA', with outlook as "credit watch with negative implications". READ MORE

BUZZING STOCK | Corporation Bank jumps 15%


New India Assurance vs ICICI Lombard: Size fails to beat profitability

ICICI Lombard General Insurance Company and New India Assurance Company (NIA) hit the bourses around the same time in September-November 2017. While the latter is the industry leader, the former rakes the top slot among private general insurers.
 
With segments such as motor, health, fire and crop insurance being the stronghold of both players, they have nearly the same product profile. READ MORE

SBI Life slips 6% after 3% equity changes hands in multiple block deals

Shares of SBI Life Insurance Company slipped over 6 per cent in the opening deals on Tuesday after reports said 3.37 crore shares or 3.4 per cent equity worth Rs 3,222 crore of the company traded in multiple block deals at an average price of Rs 945 per share.
 
At 09:30 am, the stock was trading 6 per cent lower at Rs 939 apiece on the BSE. In comparison, the S&P BSE Sensex was trading 107 points or 0.26 per cent higher at 40,391 levels. READ MORE

Metal stocks under pressure


SBI Life Insurance slumps 6%


Tech Mahindra up over 1%


Bharti Airtel zooms 4%, top gainer in Sensex pack


Nifty sectoral indices at open


Market at open


Market at open

At 9:17 am, the S&P BSE Sensex was trading 52 points higher at 40,337, and the broader Nifty50 index was trading 16 points up at 11,901.

NEWS ALERT | May amend DICGC to raise insurance cap from Rs 1 lakh: govt official to CNBC TV18

-- DICGC Act amendment interim arrangement till new FRDI Bill is passed

Alert: DICGC is Deposit Insurance and Credit Guarantee Corp Act 

Market at pre-open


Rupee opening

Rupee opens weaker at 71.91/$ vs Monday's close of Rs 71.84 per US dollar.

NEWS ALERT | ICICI Bank denies reports of raising funds via QIP: CNBC TV18

-- Says, not in any process to raise capital

Stocks to watch: SBI Life, Airtel, Vodafone Idea, Tata Steel, Shree Cement

Here's a look at the top stocks that may trade actively in today's trading session -
 
Telecom stocks: Incumbent telecom operators Vodafone Idea and Bharti Airtel, bruised by fierce competition to keep prices low, will hike tariffs starting December 1, the companies said in a surprise announcement on Monday. The first telecom tariff hike in several years follows record second-quarter losses reported by the two operators.
 
SBI Life: Carlyle is expected to sell 3 per cent stake in SBI Life in a block deal today. READ MORE

Exchange-traded funds are gaining traction as investment vehicles

Exchange-traded funds (ETFs) are gaining traction as investment vehicles, given their low-cost structure and better returns to actively-managed schemes. In the past five years, assets under management (AUM) of ETF schemes have jumped more than 30-fold to Rs 1.47 trillion. While ETFs are still a small fraction of the total AUM, market players say the share of passive investment vehicles will only grow in the years ahead. READ MORE

NEWS ALERT | PNB invites bids to sell lenders’ 73.59% equity stake in Jindal India Thermal Power: CNBC TV18

-- SBI Cap appointed as transaction advisor

-- Last date to submit bids Dec 11

-- Bids invited under Swiss Challenge Method

October Aviation Data | Domestic air traffic grows 4% YoY, the highest growth-level since June

-- Domestic traffic growth was 1.18% in Sept

-- Market share of IndiGo down to 47.4% Vs 48.2% (MoM)

-- Market share of Spicejet rose to 16.3% Vs 14.7% (MoM)

-- Air India's market share at 12.6% Vs 13% (MoM)

-- Go Air's share at 11.2% Vs 11.5% (MoM)

IPO market sees signs of recovery; 27 firms raise Rs 18000 crore so far

After a dismal year, the market for public share sales is seeing a few green shoots. In the past two months, four companies --Route Mobile, Monte Carlo, Mazgaon Dock Shipbuilders, and Indian Renewable Energy Development Agency -- have refiled offer documents with the Securities and Exchange Board of India (Sebi) for initial public offerings (IPOs). READ MORE

BROKERAGE RADAR :: Kotak Securities on NBCC

The company expects H2FY20 to be better than H1FY20 based on post monsoon pickup in execution of strong order backlog, contribution from new projects, clearance of stuck projects and contribution from real estate sales. Based on this, the company has guided for 15-20% growth in FY20 revenue. We have maintained our earnings estimates for FY20E and FY21E based on expectation of improved execution in H2FY20. We maintain ADD with unchanged target price of Rs 42, valuing at 18x FY21 EPS.

BROKERAGE RADAR :: Kotak Securities on Blue Star

Valuation and Outlook
 
  • In terms of valuation, the stock is trading at 42x and 30x FY20E and FY21E standalone earnings.
  • In view of the earnings revision in FY21E, our price target stands revised to Rs 797 (Rs 747 earlier).
  • In view of modest downside to our target price, we recommend "REDUCE".

Top trading ideas by CapitalVia: Buy JSW Steel, Max Financial Services

Market traded range bound on Monday; Nifty need to hold 11,800 for further upside
 
Market traded with mixed sentiments throughout the day on Monday on strong global cues. Nifty closed at 11,884.50 shedding 11 points. Metal, PSU banks and pharmaceutical stocks traded with positive sentiments through the day and gained most among indices. Nifty bank closed at 30,992.10 losing 16.30 points from the previous day’s closing. READ MORE

Bulk deals on BSE as on Monday

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


Rupee Check

Source: Bloomberg


Oil Check

At 7:46 AM, Brent Crude Futires were at $62.28 per barrel-mark, down 0.26 per cent from last close.

SGX Nifty

At 7:42 AM, the Singaporean Exchange for Nifty Futures were at 11,892.5, down 30.5 points or 0.26 per cent.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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