Stock Market Highlights: The Indian equity benchmark indices, Sensex and Nifty ended in green on Friday for the second straight week despite trading lower in the morning session. Index heavyweights Reliance Industries, Bajaj Finance and Eicher Motors were the top gainers of the Nifty50 index. Barring media and FMCG, all sectoral indices ended in the green. Broader indices outperformed the benchmarks, and closed nearly a percent higher each.
Here are the key highlights from today's trading session:
1. Market back in the green after a day of pause
2. Market has posted gains in 9 of last 10 trading sessions
3. Nifty rises 29 points to 12,720 & Sensex 86 points to 43,443
4. Nifty Bank moves 187 points higher to 28,466 & Midcap 171 points to 18,353
5. Market Breadth favours advances; advance-decline ratio at 3:2
6. ICICI Bank, RIL, Axis Bank & Infosys help Nifty close higher
7. ICICI Bank lifts Nifty Bank by 133 points while HDFC Bank drags by 75 points
8. Eicher Motors top Nifty gainer after reporting better-than-expected earnings
9. Tata Steel moves higher on reports of European business sales; stock up 3%
10. Tata Motors, L&T, HDFC, UPL & HDFC Bank top Nifty losers
11. Indiabulls surges over 9% after Rakesh Jhunjhunwala buys 50 lakh shares
12. Indiabulls Housing up over 6% on government's announcement for the sector
Closing Bell: Sensex gains 85 points, Nifty ends above 12,700; pharma, metal stocks lead
The Indian benchmark equity indices, Sensex and Nifty ended Friday’s volatile session higher led by gains in pharma, financials and realty stocks.
The Sensex ended 85.81 points or 0.20 percent higher at 43,443.00 while the Nifty gained 29.15 points or 0.23 percent to close at 12,719.95.
Broader indices outperformed the benchmarks as the Nifty Smallcap100 and Nifty Midcap100 indices gained 0.8 and 0.9 percent, respectively.
Diwali 2020: Gold price rallies over 29% in one year; likely to hit Rs 65,000 per gms next Dhanteras
Diwali - the Festival of Lights - always brings cheers to markets, more so to bullion markets. Traditionally, Indians buy at least a small quantity of gold, especially on Dhanteras day, believing it will bring good fortune, wealth and prosperity.
Gold prices have rallied over 29 percent since last Diwali, becoming one of the best performing asset classes. Silver prices are also up more than 35 percent. Both the precious metals made a high in the month of August. But a recent correction just ahead of the festive season is likely to support the bullion prices.
The price of precious metals soared after the March lockdown as the economic distress caused by the COVID-19 pandemic enhanced safe-haven demand amid times of uncertainty. Bullion prices also were boosted from weakness in the rupee by around 5 percent since Diwali in 2019. Read more
Sitashwa Srivastava, Co-founder & Co- CEO Stockal: We have seen a rise in general interest in Gold ETFs recently and indicators seem to suggest increased buying on the Dhanteras day. Some of the most prominent Gold ETFs have registered a rise of 20% YTD earlier this month. We expect remittances to grow another 20-30% during the next 2 weeks of festive season . Although globally there are a few fluctuations in gold and silver due to the sudden announcement of vaccine, investors can be assured that gold will revive soon and continue to give them long term benefits.
It is good to have gold assets in your portfolio, and Dhanteras is the perfect time to invest as it not only serves as a growing asset class but also protects the buyers from purity concerns that come from buying physical gold. Gold will continue to be a stable form of money with potential to store value in the midst of this global currency debasement and hence continue to be a preferred portfolio asset generating good risk adjusted returns for its holders for the foreseeable future, added Srivastava.
Stock Update: Inox Leisure raised Rs 250 crore from a qualified institutional placement (QIP) of shares. The QIP issue, involving selling over 98 lakh shares at Rs 255 a share, which carry a face value of Rs 10, was oversubscribed 3.5 times by marquee global and domestic institutional investors, the company said in a statement. At 3 pm, the share price traded a percent lower to Rs 266.50 per share on the NSE.
Renewable Energy Minister Ra jK Singh says scope Of PM-KUSUM scheme expanded for solar energy generation in farm sector. Size of solar plant has been reduced to enable participation of small farmers
Just In | RBL Bank announces the completion of its fundraise through preferential allotment. The bank’s total Capital Adequacy Ratio increases to 18.7 percent and Core Equity Tier I Ratio to 17.4 percent. Total net worth crosses Rs 12,000 crore.
BSE signs MoU with Premier Bullion Trade Associations across India on Dhanteras day
BSE has signed a Memorandum of Understanding (MoU) with premier bullion trade and industry associations based in Sangli and Yavatmal in Maharashtra, Amritsar in Punjab and Ahmedabad in Gujarat. The associations include Sangli Sarafa Association, Yavatmal Sarafa Association, Amritsar Sarafa Association, Shree Choksi Mahajan Association and Gems and Jewellery Trade Council of India (GJTCI). These associations collectively represent close to 2200 members, engaged in retail sale and trade of bullion.
This MoU aims to facilitate cooperation between BSE and physical markets represented by these trade bodies for knowledge sharing or exchange of ideas, education & training, events as well as to explore areas of mutual benefits to ensure the best interests of jewellers.
Through this association, BSE aims to organize seminars and awareness programmes on price risk management for bullion traders and jewellers, and help them shift to more organised forms of trading. Awareness about effective hedging tools such as derivatives contracts, including futures and 'options in goods' to enable jewellers face a volatile market would will also be provided. The 'options in goods' contract offered by BSE makes it extremely beneficial for jewellers and bullion dealers, who can not only hedge their price risk but also avail delivery on expiry of the contract, the exchange said in a release.
Inox Leisure raises Rs 250 crore from QIP
Multiplex chain Inox Leisure on Friday raised Rs 250 crore from a qualified institutional placement (QIP) of shares. The QIP issue, involving selling over 98 lakh shares at Rs 255 a share, which carry a face value of Rs 10, was oversubscribed 3.5 times by marquee global and domestic institutional investors, the company said in a statement.
The QIP, which opened on November 9 and closed on November 12, got a subscription from investors like the Abu Dhabi Investment Authority, Eastspring Investments, ICICI Prudential, Birla Mutual Fund, Nippon India Mutual Fund, DSP Mutual Fund and Sundaram Mutual Fund, among others.
The issue allocation is around 69 percent and 31 percent to domestic and foreign investors respectively, the company said. Read more here.
Just In | Moody's affirms Macrotech Developers’ (Lodha) USD bond rating; Outlook upgraded to Stable from Negative.
3M India reports weak earnings YoY
Motilal Oswal on Eicher Motors: We believe the recently launched Meteor and upcoming products of Eicher Motors would help expand addressable markets and drive the next phase of growth for RE. New products led volume recovery would drive margin recovery in FY22. The stock trades at 27.5/22xx FY22E/FY23E consol. EPS. We maintain buy, with target of Rs 2,670.`
Krish Raveshia, CEO of Azlo Realty: The government allowing a difference of 20% between the circle rate and the agreement value is a step in the right direction. Like stamp duty, this move too is time-bound and calls for action immediately. The move is a win-win for both developers and homebuyers. It will help reduce the high inventory, reduce the cost of acquisition for homebuyers. Real estate prices in many pockets of India have remained subdued, declined in some cases, a higher difference will help address this issue.
The additional Rs 18,000 crore spending under PMAY will help funding for stuck housing projects. The move is likely to help completion of nearly 12 lakh housing units, create 78 lakh jobs. As the real estate sector is connected with many other allied sectors the move is likely to boost demand in multiple sectors mainly steel and cement, added Raveshia.
Sources tell us that a Govt investment cell has identified 36 companies that plan relocating supply chain from China.
November may finally bring India's two-wheeler market out of the red, but post-Diwali period to be critical
After a 27 percent decline in two-wheeler registrations reported by the country's auto dealers' association in the month of October, November looks poised to be a month that arrests this decline. On a yearly basis, auto dealers and OEMs anticipate November will bring back some traction in the commuter segment of two-wheelers, forming about 75 percent of total two-wheeler sales - however, with an important caveat.
Because the auspicious days of Dhanteras and Diwali, on which the bulk of deliveries during the festive season take place, fell in the month of November this time, the North and Central regions saw muted retails in October. The commuter segment of two-wheelers draws the bulk of its buyers from states in this region, including Uttar Pradesh and Bihar. Owing also to this fact, retail registrations will report a definite pick-up as against November last year. Here's more on this
Gold rate today: Yellow metal trades higher; may test Rs 50,900 per 10 gms level
Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Friday tracking a positive trend in the international spot prices while silver price also gained marginally.
At 11:30 am, gold futures for December delivery rose 0.21 percent to Rs 50,705 per 10 grams as against the previous close of Rs 50,600 and opening price of Rs 50,665 on the MCX. Silver futures traded 0.06 percent higher at Rs 62,779 per kg. The prices opened at Rs 62,539 as compared to the previous close of Rs 62,739 per kg.
“Weakness in dollar supports gold and silver. Physical demand also increasing in India on the coming festival season. As for today, traders can buy gold at Rs 50,400 levels with the stop loss of Rs 50,200 levels for the target of Rs 50,900 levels. Buy Silver at Rs 62,300 levels, with the stop loss of Rs 61,700 and for the target of Rs 63,500” said Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking Ltd. Read more here
Govt issues advisory on dividend policy for CPSEs, advises them to pay interim dividend more frequently than once a year. Govt says CPSEs must have a consistent dividend policy
Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research: In line with our expectations, the CPI inflation has continued to be firm and has actually marginally increased to 7.6% in October 2020 as compared to 7.3% in September 2020. Food prices haven’t yet shown any signs of declining with the inflation print at 10.2% in the previous month as compared to 9.7% in September.
The prices of key vegetables including onions continue to be high as reflected in a very high YoY inflation of 22.5% and similar trends are seen in animal protein category where the YoY CPI growth came at 18.7%. Clearly, this indicates that supply and logistical challenges continue to remain high.
We believe that the likelihood of a material decline in CPI is low in the near term unless significant steps are taken to address such supply side challenges. With WPI also showing a higher trajectory in the last month, there is also a risk of a rise in core inflation going forward. The management of bond yields can prove to be seriously challenging in such an inflationary and tough fiscal environment.
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking: Yesterday Gold prices increased by 0.86% and closed at 50600 levels and silver price increased by 0.32% and closed at 62739 levels as investors feared the economic impact of an accelerating rise in corona-virus infections. US Federal Reserve Chair Jerome Powell said that progress in developing a coronavirus vaccine was welcome news but that near-term economic risks remain as infections accelerate, underscoring the likely need for additional government stimulus.
Weakness in Dollar support the gold and silver. Physical demand also increasing in India on the coming festival season.
As for today traders can go for buy in gold at Rs 50,400 levels with the stop loss of Rs 50200 levels for the target of 50900 levels. They can also go for buy in Silver at Rs 62,300 levels, with the stop loss of 61,700 levels and for the target of 63,500 levels.
Govt open to further increasing capacity of domestic airline cos from 70% as flight bookings increase just ahead of diwali:
Stock Update: Natco Pharma gets US FDA nod for Pomalidomide Capsules after settling patent litigation for the same with Celgene in US District Court. Pomalidomide is indicated for the treatment of multiple myeloma cancer. The stock is currently trading nearly a percent higher to Rs 915 per share on the NSE.
Eicher Motors' shares surge 5% on better-than-expected September-quarter earnings
Eicher Motors' share price surged 5 percent after it posted marginally better-than-expected September quarter earnings. The revenue of the company declined 3 percent on a year-on-year (YoY) basis to Rs 2,134 crore, against expectations of Rs 2,000 crore.
The net profit of the company fell 40 percent YoY to Rs 343 crore versus Rs 573 crore in the corresponding quarter last fiscal.
Earnings before interest, tax, depreciation and amortisation (EBITDA) —a measure of operational profitability—fell 13 percent to Rs 472 crore, while margins declined to 22.1 percent from 24.7 percent.
According to Siddhartha Lal, managing director of Eicher Motors, Q2 witnessed a healthy demand and pick-up in business activities in the auto industry. "It has been encouraging for our motorcycle business at Royal Enfield as we have seen increased revival in consumer sentiment and demand," he added further. Read more
Ridham Desai of Morgan Stanley
Rupee Opens | The Indian rupee opened marginally higher at 74.64 per US dollar as against the previous close of 74.65 per dollar.
Buzzing | Shares of Indiabulls Real Estate rallied over 15 percent in the early trade on Friday after ace investor Rakesh Jhunjhunwala's Rare Enterprises acquired the company’s shares worth nearly Rs 29 crore through an open market transaction. Rare Enterprises has acquired 50 lakh equity shares in the Indiabulls Real Estate (representing 1.1 percent of the total paid-up equity shares) at Rs 57.73 per share, the bulk deals data available on the National Stock Exchange showed. Read more here.
Technical View | The index has opened on a soft note this morning. It is perfectly acceptable that it needs to cool off after a great run of 1000 points! In order to resume the uptrend, we would need to cross the intermediate high of 12,775 which could lead the Nifty to 13,000. There is a good support range between 12,100-12,300 and as long as we do not break that on a closing basis, we are in safe territory, said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Opening Bell: Sensex down nearly 60 points, Nifty opens below 12,700; HDFC twins top losers
Indian equity benchmark indices opened lower on Friday following a selloff in Asian peers as rising pandemic cases globally dampened investor sentiment.
At 9:15 am, the Sensex opened 0.13 percent, or 58.27 points, lower at 43,298.92, while the Nifty50 index opened at 12,659.70, down 31.10 points, or 0.25 percent.
Heavy selling in banking stocks dragged Bank Nifty more than 400 points lower.
Broader markets traded mixed as Nifty Smallcap100 outperformed the benchmarks with 0.2 percent gains.
Among sectoral indices, the Nifty Private Bank, Nifty Financial Services and Nifty Metal fell the most while Nifty Pharma, Nifty IT and Nifty Realty traded in the green.
CLSA reiterates 'Outperform' on Aurobindo Pharma, at Rs 960 target price
The brokerage feels that the ongoing research & development projects may cap near-term margin expansion.
"Complex-product pipeline development should increase medium-term R&D spending but boost long-term profitability while stronger execution on R&D-backed projects could drive rerating," explained the brokerage.
Hence, it reiterated an Outperform rating, keeping FY21-23 EPS estimates and an Rs960 target price.