Indian shares ended flat on Monday after a volatile session as gains in Gains in index heavyweights like RIL, Bharti Airtel was capped by losses in financials, IT, and auto stocks. The Sensex ended 8 points higher at 40,802, while the Nifty50 index ended 8 points lower at 12,048.
Here's a quick roundup of all the market action of the day##Here's a quick roundup of all the market action of the day
- Market Little Changed After A Volatile Session; Nifty Just Below Flatline
- Sensex Rebounds Around 100 Points After A Nearly 300-Point Fall From Opening Highs
- Nifty Bank Recovers 170 Points After Hitting Intra-Day Low Of 31,720
- Reliance and Bharti Airtel Biggest Contributors To Nifty Gains After Hiking Tariffs
- Select Autos Lag In Trade While Some End In The Green Post November Sales
- Eicher Sees Biggest 1-Day Percentage Decline More Than 3 Months As RE Sales Miss Estimates
- All 2-wheeler Stocks In The Red Post Reporting November Auto Sales
- Yes Bank Drops Most Since November 13 As Brokerages Say Quality Of Investors Remains A Concern
- Escorts Ends 4 percent Higher After November Sales Come In Better-than-expected
- RBL Bank 4 percent Off Lows After Sources Say Bank May Launch Rs 1,600 Crore QIP Today
- While TCS and HDFC Bank Drag Nifty, Reliance and Bharti Airtel Provide Support To Index
- Market Breadth In Favour Of Declines With Advance-Decline Ratio At 2:3
Closing Bell: Sensex ends flat, Nifty around 12,050; Yes Bank, Eicher Motors top losers##Closing Bell: Sensex ends flat, Nifty around 12,050; Yes Bank, Eicher Motors top losers
Indian shares ended flat on Monday after a volatile session as gains in Gains in index heavyweights like RIL, Bharti Airtel was capped by losses in financials, IT, and auto stocks. The Sensex ended 8 points higher at 40,802, while the Nifty50 index ended 8 points lower at 12,048. Broader markets underperformed benchmark indices with Nifty Midcap and Nifty Smallcap indices down 0.7 percent and 0.9 percent, respectively.
Among stocks, Bharti Airtel, JSW Steel, Reliance Industries, Grasim, and Asian Paints were the top gainers on the Nifty50, while Yes Bank, Eicher Motors, Bharti Infratel, Bajaj Finance, and ONGC led the losses.
All sectoral indices, except Nifty Metal, ended the day in red. Major selling was seen in the IT, auto and banking sectors. Nifty IT, Nifty Auto, and Nifty PSU Bank indices fell nearly a percent each, while Nifty Pharma was down 0.8 percent. Nifty Realty fell 0.35 percent, whereas Nifty FMCG and Nifty Bank lost 0.2 percent each. Meanwhile, Nifty Metal rose over 0.3 percent during the day.
This midcap realty stock with reasonable valuations offers highest 1Y returns##This midcap realty stock with reasonable valuations offers highest 1Y returns
The real estate sector has been under pressure ever since GST and demonetisation hit the sector especially the small players. After the implementation of RERA, medium and small players did suffer from regulatory arbitrage. However, one midcap realty player that continued to maintain its momentum in terms of sales growth and comfortable valuations is Brigade Enterprises.
It is the only player in the realty midcap and large-cap space that has delivered nearly 56 percent return in the last one year. This year, the stock rallied over 40 percent. Although the large-cap players should benefit from the GST and RERA since the market has already factored in the growth, the midcap companies like Brigade Enterprises with reasonable valuations and growing leasing/sales volume have continued their pace towards gains. READ MORE
Telcos earnings, ARPU to improve with tariff hike, say analysts##Telcos earnings, ARPU to improve with tariff hike, say analysts
The latest price hike by the top three telecom firms—Airtel, Vodafone Idea and Reliance Jio—will lead to shoring up their topline and earnings, improve average revenue per user (ARPUs) and may provide some cash for balance sheets to offset the provisioning for their high adjusted gross revenue (AGR) dues, according to analysts. The tariff hikes of 25-35 percent will provide the much needed recovery of revenue and Ebitda (earnings before interest, taxes, depreciation, amortization) for incumbent firms, Fitch Ratings director (vorporates) Nitin Soni told IANS. READ MORE
RBL Bank may launch QIP of Rs 1,600 crore today. The floor price for the QIP may be set near Rs 350/share##RBL Bank may launch QIP of Rs 1,600 crore today. The floor price for the QIP may be set near Rs 350/share
Despite 30% surge in 2019, here's why Goldman Sachs downgraded this stock to 'sell'##Despite 30% surge in 2019, here's why Goldman Sachs downgraded this stock to 'sell'
Nestle has been an investor favourite, with the stock rising 30 percent in 2019 alone and nearly 40 percent in the last one year despite the ongoing consumption slowdown in the country. Despite its stellar performance, Goldman Sachs has downgraded the stock to 'sell' with a target price at Rs 10,642, indicating a 25 percent downside.
"We expect Nestle to underperform driven by slowing growth in the milk products and nutrition segment (46 percent of sales as of CY18). We now expect the company to deliver a 12 percent sales and 15 percent EBITDA CAGR in CY19-22E (versus 14 percent and 17 percent previously)," the brokerage said in a report. READ MORE
Rajesh Mirjankar of Infrasoft Technologies on how mixed reality will change the banking industry##Rajesh Mirjankar of Infrasoft Technologies on how mixed reality will change the banking industry
Imagine ordering your food in the blink of an eye by pressing just one button, without having to call the waiter, waiting for him to rightly note the order and asking him to repeat it. Imagine being able to make your presentation on your dining table, without having to switch your laptop on. Sounds like a movie right? According to Rajesh Mirjankar, MD and CEO of Infrasoft Technologies, it will soon become a reality, thanks to mixed reality — a blend of the virtual world and the real world.
To know how the technology works and how it may make several tasks easy for us, read Mirjankar's interview with CNBC-TV18.
Sensex Stocks Update: 18 out of 30 stocks slip in today's trade##Sensex Stocks Update: 18 out of 30 stocks slip in today's trade
In the 30-share BSE Sensex index, 18 stocks traded in the red on Monday. YES Bank remained the top loser, falling 4.10 percent while Bharti Airtel remained the top gainer, rising 4.43 percent.
The reason behind the fall in the Sensex were the heavyweight companies that declined. Sun Pharma, Bajaj Finance, Maruti Suzuki, HDFC Bank, TCS, Infosys along with others slipped up to 3 percent.
Nifty Sectoral Indices Update: 10 out of 11 sectors trade in the red##Nifty Sectoral Indices Update: 10 out of 11 sectors trade in the red
The Nifty50 sectoral indices traded in the red on Monday except for Nifty Metal. Nifty PSU Bank was the top losing index followed by Nifty IT and Nifty Pharma. Nifty IT remained in the red after Indian rupee traded lower at 71.79 against the US dollar.
IndiGo has abandoned its pure low-cost carrier model##IndiGo has abandoned its pure low-cost carrier model
In recent years, IndiGo has launched a series of significant steps, making a marked departure from a pure low-cost strategy, long its mainstay and which helped it become India’s largest airline. As the airline spreads its wings, the extent of its ambitions is becoming clear.
IndiGo is no longer content being the dominant domestic airline in India. It is steadily positioning itself to become a major player in the international segment as well. The change has not been sudden. Far from it.
The shift — by way of an evolving strategy — has been deliberate. And looking back, one can clearly see a pattern emerge.
Nifty Auto under pressure as November sales numbers show no signs of recovery##Nifty Auto under pressure as November sales numbers show no signs of recovery
Auto shares traded under pressure on Monday with the benchmark Nifty Auto slipping almost a percent in early trade as November sales numbers showed no signs of recovery.
As many as 13 shares out of 15 listed on on the sectoral gauge declined with Eicher Motors, Motherson Sumi, TVS Motor, Tata Motors, Ashok Leyland, Mahindra & Mahindra and Hero MotoCorp falling between 1-2 percent. READ MORE
Ujjivan Small Finance Bank IPO: Should you subscribe? Here's what brokerages recommend##Ujjivan Small Finance Bank IPO: Should you subscribe? Here's what brokerages recommend
Ujjivan Small Finance Bank's (USFB) Rs 750 crore initial public offering opened for subscription on Monday. The IPO has a price band of Rs 36-37 per share and closes on December 4. The proposed issue will see promoter shareholding fall to 85 percent after the IPO.
The Rs 750 crore IPO entirely consists of a fresh issue which would result in 17 percent dilution. The funds raised will be utilized for augmenting the bank’s tier–1 capital base to meet future growth requirements. Post private placement and fresh issue in the IPO, the tier-1 ratio will improve to 28.6 percent from 18.8 percent as on Q2FY20.
BSE, NSE suspend Karvy Stock Broking's trading licence##BSE, NSE suspend Karvy Stock Broking's trading licence
The BSE and the National Stock Exchange have suspended the licence of Karvy Stock Broking on Monday, citing non-compliance of the regulatory provisions of the exchanges.
"BSE has deactivated trading terminals of the trading member, Karvy Stock Broking Ltd, in equity segment and debt segment and put them in RRM mode in equity derivatives, currency derivatives and commodity segment w.e.f. December 2, 2019," said BSE in a notice.
The move comes two weeks after the Securities and Exchange Board of India (Sebi) has banned Karvy Stock Broking from taking new client and executing trades. Sebi said the unauthorised use of clients' funds creates a serious doubt over the conduct and integrity of the brokerage. READ MORE
Don’t need roll-over lines for repayment of loans, need it only for growth, says Gagan Banga of Indiabulls Housing Finance##Don’t need roll-over lines for repayment of loans, need it only for growth, says Gagan Banga of Indiabulls Housing Finance
In an exclusive interview with Gagan Banga, MD and CEO of Indiabulls Housing Finance said:
1. MCA has found nothing wrong w.r.t 5 specific accounts
2. Reading is that the cloud of negativity has lifted
3. Expect the PIL to go away over time
4. Confident that there will be nothing new w.r.t regulatory inspections
5. PSU banks have been extremely supportive
6. Will await shareholder approval before any action around buyback
7. Raising money from banks at 8.5-9 percent based on end-use
8. Don’t need roll-over lines for repayment of loans, need it only for growth
9. Expect transactions around commercial realty book of Rs 10,000 crore
Bajaj Finance's shares slump nearly 4%##Bajaj Finance's shares slump nearly 4%
The share price of Bajaj Finance slumped 3.78 percent intraday on Monday after RBL Bank confirmed that the financier is participating in its proposed preferential issue.
However, the Bank in its BSE filing said that Bajaj Finance neither sold or transferred the equity shares of the Bank during the past 6 months.
"Basis of their subsequent communication dated November 30, 2019, they have clarified that in their ordinary course of business, as a part of their lending
business, they disburse loans to their customers against securities as collateral/pledge. In course of this business, they have, during the past 6 months, in order to recover the loan amount from their customers invoked the pledge of the securities, which in a few instances, also included the Bank's equity shares", the filing added.
At 11:55 am, the shares of Bajaj Finance and RBL Bank were down 2.81 percent and 1.63 percent respectively on the NSE.
ICICI Bank cuts lending rates by 10 bps across tenures effective December 1##ICICI Bank cuts lending rates by 10 bps across tenures effective December 1
Sun Pharmaceutical's shares slip nearly 3%##Sun Pharmaceutical's shares slip nearly 3%
Shares of Sun Pharmaceutical Industries fell 2.88 percent on December 2 after the US court denied to dismiss some claims of certain plaintiffs related to the Ranbaxy case.
In its BSE regulatory filing, the company said, "On November 27, 2019, the US District Court (District of Massachusetts) entered a decision denying in
part and granting in part Sun Pharma’s motion to dismiss the claims of certain plaintiffs. Under the ruling, the majority of those plaintiff’s claims survive and several state law claims are dismissed. The litigation is proceeding in discovery."
The pharma giant's three generic drugs- Valganciclovir, Valsartan and Esomeprazole) are been delayed from market entry by the US District Court. These litigations have already been disclosed in the Company’s 2018-19 annual report.
Yes Bank shares slump 5 percent as brokerages raise concerns over ‘lesser-known investors’##Yes Bank shares slump 5 percent as brokerages raise concerns over ‘lesser-known investors’
Shares of Yes Bank fell 5 percent on Monday as brokerages flagged concerns over investment by ‘lesser-known’ investors in the bank.
Yes Bank, on Friday, had said that it will raise $2 billion in an issue of preferential shares to institutional investors and wealth managers.
The stock hit a low of Rs 63.10 in the early trade as against the previous close of Rs 68.30 on the BSE.
Hong Kong-based SPGP Holdings and Canadian family office of Erwin Singh Braich have committed $1.2 billion out of the total recapitalization of $2 billion. London-based Citax Holdings has offered to invest $500 million, Yes Bank said.
The bank added that it will also get $120 million from a top tier US fund house whose name it will disclose early next week.
Global brokerage Macquarie raised concerns over the quality of investors saying that their names were not heard before.
The brokerage also doubted if RBI will approve investors wanting more than 10 percent for 85 percent of proposed capital.
“We doubt RBI is going to give approval to such investors who don’t pass muster with respect to RBI’s ‘fit and proper’ criteria. So uncertainty over capital raising remains,” Macquarie said.
The brokerage maintained the ‘Underperform’ rating on Yes Bank’s stock with a Target Price (TP) of Rs 50/share.
Meanwhile, Nomura maintained a ‘Neutral’ rating on the stock with a TP at Rs 63/share.
Jefferies also maintained the ‘Underperform’ rating with TP at Rs 38/share. The brokerage also believes that of the total $1.8 billion investment, $1.7 billion is from two lesser-known off-shore investors.
At 9:35 am, shares of Yes Bank were trading 0.81 percent lower at Rs 67.75 on the BSE
Sridhar Sivaram of Enam Holdings continues to remain positive on private banks##Sridhar Sivaram of Enam Holdings continues to remain positive on private banks
Telecom stocks gain on tariff hikes; Bharti Airtel, RIL hits 52-week high, Vodafone up 23%##Telecom stocks gain on tariff hikes; Bharti Airtel, RIL hits 52-week high, Vodafone up 23%
Shares of telecom companies rose on Monday after the telcos raised tariffs for prepaid subscribers by effectively up to 40 percent.
In intra-day deals, Bharti Airtel rose as much as 10 percent to hit its 52-week high of Rs 485.75 per share. Reliance Industries also hit its 52-week high of Rs 1,614, up 4 percent, while Vodafone Idea surged 23.5 percent to Rs 8.44.
While Bharti and Vodafone Idea announced tariff hikes of 15 to 40 percent, Jio announced a tariff hike of up to 40 percent for its all-in-one plans. The new tariffs will come into effect from Wednesday for Vodafone Idea and Bharti Airtel customers, and from Friday for Reliance Jio subscribers. Read more here.
CNBC-TV18's Anuj Singhal explains how to view the recent price move in Zee Entertainment##CNBC-TV18's Anuj Singhal explains how to view the recent price move in Zee Entertainment
What a year it has been for the media company! Zee's stock price has seen highs of Rs 500 plus and lows of below Rs 200. Currently, Zee is trading at somewhere in between at 300. There are some fresh warning signs. Click here to read more.
Exclusive Interview with Exide Life Insurance's CIO Shyamsunder Bhat##Exclusive Interview with Exide Life Insurance's CIO Shyamsunder Bhat
The Nifty50's rally in the past two months following the corporate tax cut has largely factored in the gains from this significant development and that the NSE benchmark index will see some consolidation in the near-term, said Shyamsunder Bhat, chief investment officer, Exide Life Insurance.
He also spoke on the road ahead for the Indian markets and the recent developments in the telecom sector. The telcos have got a breather, though the burden of interest payment is still not off their shoulders, he observed.
Rupee opens lower at 71.78##Rupee opens lower at 71.78
The Indian rupee opens at 71.78 on Monday after the Q2 GDP drops to 6-year low and the concerns on the US-China trade talks escalate.
Ujjivan Small Finance Bank IPO opens today: All you need to know##Ujjivan Small Finance Bank IPO opens today: All you need to know
Ujjivan Small Finance Bank's Rs 750 crore initial public offering opened for subscription today. The IPO has a price band of Rs 36-37 per share and closes on December 4. The proposed issue will see promoter shareholding falling to 85 percent post the IPO.