MARKET WRAP: Sensex slips 68 pts on profit-booking; Bharti Airtel down 4%

Topics Markets | MARKET WRAP

After touching record high during the day, benchmark indices ended Tuesday's session with minor cuts as investors creamed off profit. The S&P BSE Sensex ended at 40,821 levels, down 68 points or 0.17 per cent while NSE's Nifty50 index settled at 12,038, down 36 points or 0.30 per cent.

In the opening deals, the 30-share index of BSE hit a new high of 41,120.28 levels. ICICI Bank (up over 2.50 per cent) ended as the top gainer on the index while Bharti Airtel (down over 4 per cent) emerged as the biggest loser.

On the NSE, the broader Nifty50, too, scaled a fresh peak of 12,132.45 levels in the early trade. 

In the broader market, the Nifty Midcap 100 index slipped 0.85 per cent to end at 16,915 levels while the Nifty SmallCap 100 index lost 0.42 per cent to end at 5,721. 

Sectorally, media counters took the biggest hit, led by steep fall in ZEE Entertainment Enterprises (ZEEL) shares following the resignation of Subhash Chandra as Chairman of the company. The Nifty Media index declined 3.63 per cent to close at 1,889 levels. Next on the list was IT stocks as the Nifty IT pack lost over a per cent to 14,922 levels. 

India VIX settled nearly a per cent lower at 14.89 levels.

BUZZING STOCKS

Zee Entertainment Enterprises (ZEEL) slumped up to 9 per cent to Rs 312.50 on the BSE after its founder Subhash Chandra stepped down as the company's chairman.  Chandra becomes non-executive director with immediate effect. The decision was taken following a board meet on Monday. The stock settled at Rs 320, down 7 per cent.

Bharti Airtel shares declined over 4 per cent to Rs 432 on the BSE after rating agency ICRA downgraded the company’s long-term rating from "AA" to "AA-"on higher-than-anticipated provision for dues towards license fees on adjusted gross revenues (AGR) and spectrum usage charge.

On the upside, shares of Aavas Financiers hit a new all-time high of Rs 1,840, up 8 per cent on the BSE, thus zooming more than 100 per cent so far in the calendar year 2019 (CY19), on the back of strong financial performance and sustained buying by foreign portfolio investors (FPIs). The scrip ended at Rs 1,817, up 6.30 per cent. 

GLOBAL MARKETS

World stocks hit their highest in almost two years on Tuesday, keeping record highs in sight, following fresh signs that the United States and China were working to end a bitter trade war that has dealt a blow to the global economy. Besides, a strong Hong Kong debut for Chinese e-commerce giant Alibaba in the world's largest share sale of this year, boosted stock markets in Asia. 

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent to a one-week high. Australian shares were up 0.83 per cent, while Japan's Nikkei stock index rose 0.54 per cent. US stock futures edged 0.08 per cent higher in Asia on Tuesday after Wall Street’s three main stock averages closed at record highs on 

Monday, buoyed by hopes for a trade deal and by M&A activity.

In European market, the pan-region Euro Stoxx 50 futures were up 0.03 per cent, German DAX futures were up 0.12 per cent, while FTSE futures were up 0.14 per cent on Tuesday.

(With inputs from Reuters)


3:43 PM IST Broad-based sell-off

3:42 PM IST Bank stocks among key gainers; Bharti Airtel slips over 4%

3:41 PM IST

3:36 PM IST The S&P BSE Sensex lost 68 points or 0.17 per cent to end at 40,821 while NSE's Nifty50 index ended at 12,038, down 36 points or 0.30 per cent.

3:27 PM IST

3:19 PM IST

3:07 PM IST -- Stock up 31% in 2019 with market cap now exceeding Rs 21,000 cr  -- Stock has gained 15% since results on 22nd October after Dominoes posted store sales growth of 4.9%  

3:04 PM IST Pharmaceutical firm Ipca Laboratories on Tuesday said the US health regulator has found its manufacturing unit in Silvassa, Gujarat, non-compliant with the current good manufacturing practices.   However, the company said that since this manufacturing facility is already under USFDA import alert and presently not doing any US business, this will have no impact on company's current on-going business activities. READ MORE

2:46 PM IST Shares of Aavas Financiers hit a new all-time high of Rs 1,840, up 8 per cent on the BSE on Tuesday, thus zooming more than 100 per cent so far in the calendar year 2019 (CY19), on the back of strong financial performance and sustained buying by foreign portfolio investors (FPIs).   Share price of the company has surged 116 per cent from Rs 851 on the BSE. Aavas Financiers is the fourth most value creators among the S&P BSE 500 index in CY19. In comparison, the benchmark S&P BSE Sensex has gained 13 per cent during the same period. READ MORE

2:39 PM IST

2:38 PM IST #BreakingNews | Maharashtra govt formation: Ajit Pawar resigns as Deputy Chief Minister#MaharashtraGovtFormation#AjitPawarhttps://t.co/IQBRI6Eg17 pic.twitter.com/T5ZHv1QNV6— Business Standard (@bsindia) November 26, 2019

2:29 PM IST

LIVE UPDATES

Nifty snapshot

Broad-based sell-off



Sensex heat map

Bank stocks among key gainers; Bharti Airtel slips over 4%



Index watch


CLOSING BELL

The S&P BSE Sensex lost 68 points or 0.17 per cent to end at 40,821 while NSE's Nifty50 index ended at 12,038, down 36 points or 0.30 per cent.

MARKET CHECK | Around 1.15% equity of ICICI Bank changes hand


MARKET CHECK | Bhati Infratel plunges 7%


Buzzing | Jubilant Foodworks hits record high

-- Stock up 31% in 2019 with market cap now exceeding Rs 21,000 cr 

-- Stock has gained 15% since results on 22nd October after Dominoes posted store sales growth of 4.9%
 

US FDA pulls up Ipca Labs for manufacturing violations at Gujarat plant

Pharmaceutical firm Ipca Laboratories on Tuesday said the US health regulator has found its manufacturing unit in Silvassa, Gujarat, non-compliant with the current good manufacturing practices.
 
However, the company said that since this manufacturing facility is already under USFDA import alert and presently not doing any US business, this will have no impact on company's current on-going business activities. READ MORE

Aavas Financiers hits new high, zooms 116% thus far in 2019

Shares of Aavas Financiers hit a new all-time high of Rs 1,840, up 8 per cent on the BSE on Tuesday, thus zooming more than 100 per cent so far in the calendar year 2019 (CY19), on the back of strong financial performance and sustained buying by foreign portfolio investors (FPIs).
 
Share price of the company has surged 116 per cent from Rs 851 on the BSE. Aavas Financiers is the fourth most value creators among the S&P BSE 500 index in CY19. In comparison, the benchmark S&P BSE Sensex has gained 13 per cent during the same period. READ MORE

Market check | Sudden decline in markets


NEWS ALERT | Devendra Fadnavis to address media at 3.30 pm

Market check


Market check


Castrol India slides 4%


BUZZING STOCK:: Gujarat Gas up 5%


India Must Clean Up or Clear Out Dodgy Brokers

More than $200 billion in bad loans tumbled out when banks were made to open their attics to the regulatory broom four years ago. That cleanup isn’t over, and already it’s the stockbrokers’ turn. Who knows what will emerge?
 
Investors are waiting to find out after the Securities and Exchange Board of India, or Sebi, banned Karvy Stock Broking Ltd., a middleman for nearly 250,000 clients, from taking on new customers. The regulator said in its interim order that the broker may have helped itself to investors’ money and securities and diverted as much as $150 million to its real-estate business. READ MORE

Stocks that hit 52-week highs on BSE500

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
AAVAS FINANCIERS 1823.35 1839.50 114.00 6.67
ADANI ENTERP. 210.40 217.70 -4.80 -2.23
ADANI GREEN 115.65 119.00 1.45 1.27
ADITYA BIRLA CAP 108.10 114.25 -2.65 -2.39
DIVI'S LAB. 1788.35 1805.00 24.15 1.37
» More on 52 Week High

BUZZING STOCK:: Biocon up 4%


Buzzing | Indiabulls Ventures sees sudden spike


Global markets check

Asian stocks rose on Tuesday, bolstered by new momentum in Sino-US efforts to end their acrimonious trade dispute and as Chinese e-commerce giant Alibaba made a strong Hong Kong debut in the world’s largest share sale this year.
 
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent to a one-week high. Australian shares were up 0.83 per cent, while Japan's Nikkei stock index rose 0.54 per cent.
 
The pan-region Euro Stoxx 50 futures were up 0.03 per cent, German DAX futures were up 0.12 per cent, while FTSE futures were up 0.14 per cent on Tuesday.

Nifty Pharma index off day's low


NEWS ALERT | India Ratings and Research revises GDP growth forecast for FY20 to 5.6%

-- Says, the new projection suggests that 2QFY20 GDP growth is likely to be 4.7%

-- Despite favourable base effect, declining growth momentum suggests that even the 2HFY20 will now be weaker than previously forecasted and is likely to come in at 6.2%.

Bharti Airtel dips 4% as investors book profit amid ICRA's rating downgrade

Bharti Airtel shares slumped 4 per cent to Rs 435 on the BSE on Tuesday after rating agency ICRA downgraded the company’s long-term rating from "AA" to "AA-"on higher-than-anticipated provision for dues towards license fees on adjusted gross revenues (AGR) and spectrum usage charge. The telecom services provider's stock hit a multi-year high of Rs 456 in intra-day trade on Monday. READ MORE

Buzzing | Vodafone Idea declines over 8%

-- Telecom secretary Anshu Prakash on Monday said no reference has been sent to TRAI on setting floor price on tariffs and the Digital Communications Commission will meet in the second half of December where it may take up the issue of spectrum auctions.
 
 
 

Tejas Networks surges 10% on strategic pact with Bharat Electronics

Shares of Tejas Networks were locked in upper circuit of 10 per cent at Rs 105 on the BSE on Tuesday after the company announced that it has signed a Memorandum of Understanding (MoU) with the state-owned defence solution provider Bharat Electronics (BEL). The trading volumes on the counter doubled with a combined 1.4 million equity shares changing hands on the NSE and BSE till 11:48 am. READ MORE

Are Indian banks out of the woods? Yes, no and the answers in between

The quarter-on-quarter (Q-o-Q) net profit of 35 listed banks that have announced their earnings till last weekend is down by over 37 per cent but their profits before tax is up 9.36 per cent. Why am I talking about Q-o-Q figures and not year-on-year (Y-o-Y)? That won’t make much sense as too many banks were in losses in the September 2018 quarter and overall the industry was in the red. The rise in operating profits, riding on growth in net interest income, is a happy sign. The Y-o-Y growth in advances has been close to 11 per cent, the growth in deposits is higher--12.39 per cent. READ MORE

Market check | Nifty turns negative for the first time during the day


MARKET CHECK


Dr Reddy's Labs extends gains for second straight day, hits 33-month high

Shares of Dr Reddy’s Laboratories hit an over two-year high of Rs 2,971, up 2 per cent on Tuesday, extending its previous day’s 2 per cent gain on the BSE after the drug maker launched Doxercalciferol injection in the US market. The stock was trading at its highest level since February 13, 2017. “It is the therapeutic generic equivalent of Hectorol (doxercalciferol) injection approved by the US Food and Drug Administration (USFDA),” Dr Reddy’s said in press release. READ MORE

NEWS ALERT | Alembic Pharma gets US FDA approval for Silodosin capsules: BSE Filing

-- Approval for 4 mg and 8 mg capsule
 
 

MSCI publishes ESG ratings of 2,800 firms; gives more info to investors

MSCI published the environmental, social and governance (ESG) ratings of more than 2,800 companies on Monday, giving all asset managers more detail to make their investment decisions.
 
A growing number of investors across the world are factoring ESG risk into their decision-making, amid a growing belief that companies with a good rating will be better-run and produce stronger returns with lower risk. READ MORE

Pharma stocks gain, Nifty Pharma up 0.7%


MARKET CHECK | Top gainers on the BSE at present


BUZZING STOCK:: Thomas Cook up 5%


Reliance Industries, ICICI Bank propel Nifty to fresh record high

Reliance Industries (RIL) and ICICI Bank contributed more than 100 points to the Nifty 50 index which hit an all-time high of 12,132 points today. The benchmark index surpassed its previous high of 12,103, hit on June 3, 2019 in intra-day trade, on the back of strong buying by foreign portfolio investors (FPIs). RIL contributed 181 points, while ICICI Bank contributed 132 points of the total Nifty gain during the period. READ MORE

IndiGo declines 4% after DGCA asks airline to replace faulty engines

InterGlobe Aviation, parent company of budget carrier IndiGo, slipped 4.2 per cent to Rs 1,389 apiece on the BSE in the early morning deals in Tuesday after aviation regulator Directorate General of Civil Aviation (DGCA) barred the operator from operating Airbus A320 and 321 Neo aircraft having turbine blades built with titanium, which is prone to damage leading to mid-air engine shut down. READ MORE

Glenmark Pharma dips 2%


MARKET CHECK:: Sensex pares gains


MARKET CHECK: Sensex holds early gains


Elara Capital on Colgate

With the introduction of naturals by Patanjali, Colgate Palmolive (CLGT IN) lost its market share to Patanjali, primarily in South and West India. Colgate’s market share of ~57% (at an all-time high) in 2015 is down to ~52% currently. However, with growth moderation in naturals, market share for Patanjali is not increasing and stable at ~8%. Even for CLGT, market share has stabilized (its internal assessment on market share). 

We expect an earnings CAGR of 10.5% over FY19-22E, assuming revenue growth of 5% for FY20E & 8% over FY21-22E and volume growth of 5% over FY20-22E. We expect margin to remain stable despite gross margin benefits due to high ad spend. We reiterate Sell with a target price of Rs 1,290 based on 36x September 2021E EPS of Rs 36.

Kotak Institutional Equites on BPCL

Potential divestment of BPCL’s subsidiaries, JVs and investments before its privatization may help the government (1) realize better value, (2) generate higher cash inflows in form of LTCG, dividends and DDT and (3) reduce ask-rate for the private player for pure downstream business. However, we do not see much upside for minorities despite significant potential dividend payout on such phased divestments, as BPCL’s premium valuations over other OMCs prices in gains from privatization.

Edelweiss on Tech Mahindra

While margin levers such as automation and off-shoring remain, we believe FY20 margin will be lower than FY19 owing to higher costs incurred due to deal ramp ups and a slow start to the year (H1FY20 margin down 210bps YoY). That said, demand in telecom is reviving; deal wins over the past two-three quarters have been skewed towards the communications vertical. We expect robust revenue growth led by a resurgent telecom vertical and stable enterprise business. The stock trades at 14.6x FY20E EPS. Maintain ‘BUY’ with target price of Rs 937.

ICICI Securities on cement sector

Average pan-India prices declined 1.5% MoM in Oct’19 led by a sharp 4.5% MoM decline in South region; though the same is still up 4% YoY owing to 11% YoY increase in North. We expect newsflow on volumes to improve hereon and that on pricing from Feb’20 based on seasonality. We maintain our positive view. UTCEM remain preferred picks.

ICICI Securities on Bharti Airtel

The stock is trading at 20% lower open interest compared to the last series, which is majorly a cut in short positions. In the last month, the open interest in the stock was at a one-year high, which has a major short bias. The closure in this OI is a good sign for the stock's stability. The highest Put base in the stock has been formed at the 400 strike, which should act as good support in coming days. The stock may see some base formation near these levels before moving higher. However, as we are moving towards current month F&O expiry, some short covering pattern may be seen.

MARKET COMMENT :: Dhiraj Relli, MD & CEO, HDFC Securities

Nifty touched all time high today and Indian markets have followed a lot of other developed markets and emerging markets like Brazil in this regard.  We at HDFC Securities had forecasted a Nifty target of 12400 in December 2018 and now we are almost there.  FIIs have largely been bullish on the Indian market in November, investing ~Rs 18,200 crore till 25th. Local investors have been investing largely through SIP, but have not withdrawn money in a big way despite a polarised market.

Investors are likely to reallocate capital back to the stock markets if global growth revives. Companies have started enquiring about fresh loans and there are initial signs of economy starting to recover. October and November were better than August. Real recovery may start from Jan 2020.  
 
Most of the drivers of the current slowdown appear to be temporary and related to channel financing/GST credit issues. Companies which are able to gain market share from their competitors have been less impacted by the slowdown.

Dhiraj Relli, Managing director & CEO, HDFC Securities

BUZZING STOCK:: Lupin climbs over 3%


Contribution to Sensex's gain today


Zee Entertainment slides after Subhash Chandra steps down as chairman


Bank of India up 4%


YES Bank gains over 3%


NEWS ALERT | Nifty Bank index hits fresh record high; crosses earlier level of 31,783.60


NEWS ALERT | Glenmark Pharma gets US FDA nod for Metformin Hydrochloride tablets: BSE Filing

-- Tablet is a generic version of Glumetza

Index Contributors at this hour


Bharti Airtel slides

-- Reports suggest the company has submitted bid for RCom


Nifty Media index declines 1%


Sector watch | Nifty PSU Bank index trades as the top gainer


IndiGo slips 3%

-- DGCA directs the airline to replace engines of nearly 109 aircraft


Zee Entertainment slides over 3% after Subhash Chandra resigns as chairman


Tata Steel up over 1 per cent


Nifty Bank index inching towards record highs


Market check

S&P BSE Sensex surges 212.46 points, or 0.52 per cent, to trade at 41,101.69

Nifty50 is up 52.1 points, or 0.43 per cent, at 12,125.85
 

Bharti Infratel slips 5%


Sectoral trends at NSE during Opening trade


Top gainers and losers on S&P BSE Sensex during Opening trade


Market at Open | Nifty surpasses previous high of 12,103


Market at Open | Sensex hits all-time again in first trade


NEWS ALERT | Govt-RBI working on 1-time waiver for realty cos: sources to CNBC TV18

-- Waiver for repayment dues

-- 1-time waiver from NPA tag to enable them to raise funding

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


Market at Pre-open | Nifty hits all-time high in pre-open


Market at Pre-open


Rupee opening

Rupee opens higher at 71.68/$ vs Monday's close of 71.72 against the US dollar

Stocks to watch

ZEE Enterprises: Subhash Chandra, who ushered in the cable and satellite revolution in India with Zee TV, has stepped down as chairman of the board at the company he founded three decades ago. The decision was taken following a board meet on Monday. READ MORE
 
Bharti Airtel: Rating agency ICRA has downgraded Bharti Airtel Ltd's long-term rating from "AA" to "AA-"on higher than anticipated provision for dues towards license fees on adjusted gross revenues (AGR) and spectrum usage charge. READ MORE

Gold loses some glitter, slips to two-week low on hopes of trade-feud thaw

Gold fell for a fourth straight session on Monday, hitting a two-week low as investors' appetite for riskier assets increased on renewed optimism that a resolution to the long-drawn US-China trade conflict will soon be reached. Spot gold fell 0.3 per cent to $1,457.48 per ounce as of 12:04 p.m. EST (1704 GMT), after touching its lowest level since Nov. 12 at $1,453.40. READ MORE

Domestic performance, steady growth outlook driving up Cipla stock

The stock of pharmaceuticals major Cipla has rebounded more than 18 per cent since its October lows. There were concerns earlier on the pace of domestic growth, given distribution and trade-related issues, subdued emerging-market performance in the June quarter, and regulatory issues at its Goa plant. READ REPORT HERE

NEWS ALERT | Govt-owned non-life insurance cos may receive cap infusion of Rs 2,500 cr in FY20: sources to CNBC TV18

-- Cap infusion to help companies meet solvency ratios of National, United & Oriental Insurance

-- Capital infusion likely to reflect in the first supplementary

Troika of issues to have a bearing on Vedanta's near-term earnings

Shares of Vedanta, which have underperformed leading indices over the past one year due to pressure on base metal prices, were among the top Sensex gainers on Monday. Analysts attribute the gains to the bounce in the metals pack as a whole, led by expectations that a trade agreement between the US and China could improve demand and, in turn, realisations for metals. READ MORE

After a lull, IndusInd Bank on course to regain investor confidence

After a long spell of being shunned by investors, IndusInd Bank seems to be on the path to regaining some of the lost trust. Gains of 22 per cent for the stock since the bank declared its September-quarter (Q2) results suggest investors see some merit in the bank’s asset-quality guidance. READ MORE
IndusInd Bank

Nifty outlook and top trading ideas by Jay Anand Thakkar of Anand Rathi

NIFTY: BUY | TGT 12,300 | SL: 12,000
 
Nifty closed in the positive territory and, as anticipated in the last trading session, the Index has again started to form higher tops and bottoms. It has also provided a breakout from the crucial swing resistance of 12,040 levels. The hourly momentum indicator MACD has come back into the buy mode which is quite positive and the Index is inching towards the upper end of the rising wedge pattern i.e. towards 12,300 levels. READ MORE
 

Bulk deals on BSE as on Monday

Bulk deals on NSE as on Monday

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


Rupee Check

Source: Bloomberg


Oil Check

At 7:57 AM, Brent Crude Futures were at $62.63 per barrel-mark.

SGX Nifty

At 7:54 AM, the Singaporean Exchange for Nifty Futures were at 12,127 level, up 20 points, or 0.17 per cent.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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