Thank you readers! Here are the key highlights from today's session
- Market Snaps 2-day Winning Streak; Sensex & Nifty Erase Gains For The Week
- Nifty Sees Biggest 1-day Fall In Nearly 5 Months & Midcap Index In 2 Months
- Sensex Falls Over 1,000 Pts From Record High, Nifty Gives Up 300 Points
- Nifty Bank Fails To Hold 30,000 Mark, Sheds 3.5% From Top To End At 29,196
- India Volatility Index Surges 10% To End Above 50-DMA
- PSU Stocks Hold On To Gains Amid a Falling Market; ONGC Top Index Gainer
- All Sectoral Indices Except Nifty PSU Bank End In Red; Nifty Pharma Below 50-DMA
- Market Breadth Shifts In Favour Of Declines To 1:2; It Was At 6:1 During Opening
Closing Bell: Sensex ends 695 points lower, Nifty below 12,900 on profit booking
The Indian indices fell from record-high levels to end 1.5 percent lower on Wednesday as investors booked profits after a tremendous bull run. Banking and financial stocks dragged the most while IT and pharma stocks also weighed on the indices. The Sensex ended 695 points lower at 43,828 while the Nifty lost 197 points to settle at 12,858. In early deals, Sensex rose as much as 302 points to its all-time high of 44,825 while Nifty added 91 points to its record high of 13,145.85 powered by upbeat vaccine trial data and strong inflows from foreign money managers.
On the Nifty50 index ONGC, GAIL, SBI Life, Adani Ports, and Coal India were the top gainers while Eicher Motors, Axis Bank, Kotak Bank, Sun Pahrma and Bajaj Finance led the losses. Broader markets were also lower with Nifty Midcap index down 1.7 percent and Nifty Smallcap index down 0.8 percent. Among stocks, Nifty Bank and Nifty Fin Services fell 1.8 percent each while Nifty Auto and Nifty IT lost over 1.5 percent each. Nifty Pharma was the top laggard, down 2 percent.
Nikkei faces correction before gains next year: Reuters poll
Japanese shares will likely see a correction in the near term following a global rally fuelled by coronavirus vaccine hopes, but will rise next year to their highest levels in three decades, a Reuters poll published on Wednesday showed. The median estimate in the poll of 26 analysts and fund managers surveyed Nov. 12-23 put the benchmark Nikkei index finishing 2020 at 26,000. That is slightly below the index’s close on Tuesday of 26,165.59, but nearly 12 percent higher than the previous Reuters poll in August that forecast the index at 23,300 at year’s end. The median forecast in the poll expects the Nikkei to remain at 26,000 by next June before rising to 27,350 at the end of 2021, which would be its highest level since August 1990.
BioNTech, Fosun start Phase II trial of COVID-19 vaccine in China
BioNTech and Shanghai Fosun Pharmaceutical said on Wednesday they would launch a Phase II clinical trial of BioNTech’s experimental COVID-19 vaccine in China. The vaccine, known as BNT162b2, will be tested on volunteers at the Jiangsu Provincial Center for Disease Control and Prevention to assess safety and immunogenicity, eyeing future approval in China, the two companies said in a statement. BioNTech is also working with U.S. pharma giant Pfizer on the vaccine and the partners said last week they were hoping to win approval in the United States and Europe this year after trial results showed the compound had a 95 percent efficacy rate and caused no serious side effects.
Nifty PSU bank index up 4% on RBI panel proposals, healthy earnings
The PSU Bank index is the best-performing sector on Wednesday, surging nearly 4 percent on the back of Reserve Bank of India's consultative paper with new set of recommendations on ownership in the banking system. The Nifty PSU Bank index gained as much as 3.45 percent on the back of Bank of Baroda, Punjab National Bank and Union Bank. All these PSU banks surged up to 5 percent in-trade today. However, the top gainer of the index was Indian Overseas Bank, rallying nearly 10 percent to Rs 12.15 per share on the NSE. In November, on a month-till-date (MTD) basis, the index has jumped nearly 15 percent. The wave of optimism in the PSU bank index rose even more after the RBI 's internal working group proposed several recommendations to revive the Indian banking sector. More here
JSW Cement aims listing in December 2022
JSW Cement has pushed back its plans for an initial public offering by two years to around December 2022 due to slowdown and COVID-19 disruptions, a top company official said on Wednesday. The company had already drawn an ambitious plan to expand its combined cement capacity to 25 million tonne by 2023 at a CapEx of Rs 3600 crore.
”In 2019, the sector had degrowth, in 2020 Covid hit us. Now December 2022 is a logical timeline for us for the IPO,” JSW Cement managing director Parth Jindal said at a virtual briefing to announce expansion of Shiva Cement, in Odhisa. The company, part of the $14 billion JSW Steel Group to bridge the gap was in process of raising Rs 1000-1500 crore through PE route by this fiscal, Jindal said.
Indian Banks' financial strength will not materially recover until FY23: S&P Global Ratings
Rating agency Standard & Poor’s expects the Indian banking sector’s bad loans to rise to 10-11 percent over the next 12-18 months, up from 8 percent as of June 30, 2020. The latest forecast is lower than the earlier one of 13-14 percent, and factors in resumption of economic activity, government’s credit guarantee scheme for MSMEs and buoyant liquidity. But the agency warned that it would take at least another two years before the financial sector’s regains its strength. “Our NPL estimates are lower than previous but we are still of the view that the sector's financial strength will not materially recover until fiscal 2023 (ended March 31, 2023),” it said in a recent report. S&P believes that Reserve Bank’s one-time restructuring scheme is helping mask the problem assets for Indian banks arising from COVID-19. It expects 3-8 percent of the banking sector’s loans could get restructured.
More here
Indian stock market rally to continue in 2021 on vaccine hopes - Reuters/Ipsos poll
India’s stock market rally is set to continue and hit new record highs in 2021, according to a Reuters poll of equity strategists who overwhelmingly expected corporate earnings to return roughly to pre-pandemic levels within a year. The Nov. 12-24 Reuters poll of over 35 equity strategists predicted the BSE Sensex index, which is currently trading at a record high, would set new all-time peaks in the next year. It was forecast to rise about 3 percent from Tuesday’s high to 45,750 by mid-2021. It was then predicted to rise another 4 percent to 47,550 by the end of 2021, with forecasts ranging from 36,000 to 54,400. Those forecasts were based on recent progress in developing COVID-19 vaccines even as cases rise around the world, according to over three-quarters of strategists, or 26 of 34, who answered an additional question.
ONGC shares jump 6% driven by rally in crude prices
Shares of Oil & Natural Gas Corp jumped 6 percent on Wednesday, following a rally in oil prices as they hit their highest level since March 2020. The stock rose as much as 6.3 percent to the day's high of Rs 80.85 per share on BSE. It has risen over 15 percent in the last one month but is down 38.6 percent on a year-to-date basis. Crude oil prices rose for a fourth straight day shrugging off an industry report showing a higher-than-unexpected rise in U.S. crude stockpiles and extending a rally driven by hopes that a COVID-19 vaccine will boost fuel demand, Reuters reported.
Banks won't be all of next bull market: Geosphere’s Arvind Sanger
The next bull market won't be driven largely by banks as laggards like real estate, travel and entertainment players are likely to participate hereon, said Arvind Sanger, Managing Partner of Geosphere Capital Management. “I wouldn't put all my bets on the banking sector,” said Sanger in an interview to CNBC-TV18. According to him, Axis Bank, ICICI could see some rotation. He expects healthcare, health institutions and diagnostics to remain a long-term theme. For the entire interview, watch video
Here's why KEI Industries has gained 15% in last 10 sessions
KEI Industries is building momentum gradually but surely. In fact, it advanced by as much as 15 percent in the last 10 sessions. What is behind the gains?
According to the management, the business has been picking up. The business-to-consumer (B2C) category is 98 percent of the normal levels and the business-to-business (B2B) is at 92 percent of the normal levels. Watch the video for more
Prefer banks with low stress, says Gurmeet Chadha of Complete Circle; picks Axis Bank, ICICI Bank
Investors should look at banks that are witnessing the easing of stress, says Gurmeet Chadha, Co-Founder & CEO of Complete Circle Consultants. In an interview with CNBC-TV18, Chadha said that he is bullish on Axis Bank and ICICI Bank. “I would prefer Axis Bank, ICICI Bank from an incremental allocation perspective. One can also look at some of the banks where we are possibly seeing the heightened stress ease out something like a Bandhan Bank despite the run-up or an IDFC First Bank. Also some of the HFCs like Can Fin Homes. So look at more value bargains where we are seeing some signs of stress easing and probably reduction of provisions,” Chadha said.
Watch video for here
ITC suffers from ESG black mark, is unloved, but valuations favourable: Ambit
“ITC has made a phenomenal comeback, in fact in the last few months ITC is perhaps the best performing FMCG stock being the cheapest and being most unloved,” Dhiraj Agarwal, Co-Head Equities of Ambit Capital said in an interview to CNBC-TV18.
“It does suffer from the ESG (environmental, social and governance) black mark and which has becomes a huge issue in the investing world at this point, but despite that, I think the valuations are so much on their side that it actually might end up doing reasonably well,” he said. Ambit does not have a rating on ITC
Watch video for more.
Gold rate today: Yellow metal falls; support seen at Rs 48,100 per 10 gms level
Gold prices in India fell below Rs 48,500 per 10 grams level on the Multi Commodity Exchange (MCX) Wednesday tracking weakness in overseas prices on improved risk sentiment amid developments over coronavirus vaccine. At 11:35 am, gold futures for December delivery fell 0.30 percent to Rs 48,437 per 10 grams as against the previous close of Rs 48,585 and opening price of Rs 48,497 on the MCX. Silver futures traded 0.48 percent lower at Rs 59,334 per kg. The prices opened at Rs 59,617 as compared to the previous close of Rs 59,621 per kg. On Tuesday, gold prices declined 1.81 percent while silver fell 1.49 percent as risky assets such as equity markets recovered globally.
More here
Toyota Kirloskar again suspends work at Bidadi facility
Toyota Kirloskar Motor (TKM) on Tuesday said it has again suspended operations at its Karnataka based manufacturing plant after opening it briefly last week. Based on the directions of the Karnataka government, the company’s management had decided to lift the lockout at its two plants in Bidadi (near Bengaluru) from November 19. The company had announced to shut operations at the facility on November 10 following worker union members resorting to a sit-in strike at the factory premises to protest against the suspension of a worker. Even after the withdrawal of the lockout by TKM management, only few team members have reported to work as on date, as per their shift schedule and the rity of the team members are continuing their illegal strike, the auto major said in a statement.
More here
Market Watch: Ruchit Jain, Angel Broking
First is a buy call in HDFC Life Insurance, irrespective of what is happening in the market we have seen a good amount of buying interest coming in HDFC Life. The price volume action indicates that the uptrend is likely to continue going ahead. So one can go long on HDFC Life with stop below Rs 666 for the target of Rs 720.
Polycab India is our second pick which we are positive on. This is more of a short term call. Basically at the end of October, we have seen a good amount of buying in the stock, the price upmove was supported by very high volumes. Since last few months the prices have been consolidating in a range so there is formation of a bullish flag pattern. One can buy Polycab from a short-term perspective with a stop below Rs 912 for a target of Rs 1,000.
Larsen & Toubro | L&T Construction has secured a large contract to construct India's longest road bridge across river Brahmaputra connecting Dhubri in Assam to Phulbari in Meghalaya worth Rs 2,500-5,000 crore.
Market Update | Nifty Bank traded over a percent higher led by Bank of Baroda, Federal Bank and RBL Bank.
Technical View | We have successfully achieved the Nifty target of between 13,100-13,200 this morning. This zone could prove to be a resistance zone and there is every possibility we witness profit booking. Traders can utilize the current market level to lighten up on their positions and use a trailing stop loss method. The support is now upgraded to 12,800, said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Buzzing | Shares of Tata Motors rallied over 2 percent after global brokerage house CLSA maintained a Buy rating on the stock with a target at Rs 220 per share. CLSA believes that the company had a good start to Q3 with JLR volume recovery continuing driven by China. Estimate JLR’s overall retail sales decline moderated to 4 percent YoY in October, it said.
Up 60% in 6 months: Nifty IT index outperforms benchmarks
The IT index has outperformed benchmarks in the last six months with the Nifty IT rising nearly 60 percent in this period. In a recent report, HDFC Securities noted that the outperformance in technology stocks is led by a sharp spike in demand trajectory, significant operational improvement, continuity in market share gains and industry tailwinds of an accelerated dollar. However, the brokerage firm also noted macro risks such as second-wave/lockdown have increased, but that’s likely to translate into a flattish demand curve instead of a double-dip. On a year-to-date basis as well, the Nifty IT index has risen 41 percent as compared to a 7 percent rise in Nifty. Among stocks, all constituents of the Nifty IT index also delivered positive returns with L&T Info leading, up 95 percent. Mindtree, Info Edge, Infosys, Coforge were up over 50 percent each while HCL Tech, Wipro, Mphasis, TCS and Tech Mahindra added 15-50 percent.
More here
Opening Bell: Nifty, Sensex open at record highs tracking rally in global peers
The Indian market opened at record highs on Wednesday following a rally in global markets as coronavirus vaccine hopes and fading uncertainty in US politics boosted sentiment. The Sensex rose as much as 302 points to its new high of 44,825 while the Nifty rose 91 points to its all-time high of 13,145.85. Broader markets were also positive with the Nifty Midcap and Nifty Smallcap up over half a percent each. Among sectors, the Nifty Bank jumped over 1 percent while the metal and pharma indices rose 0.8 percent each. Nifty Auto was also up 0.7 percent, however, Nifty IT was the only index in the red, down 0.3 percent. ONGC, Tata Motors, Dr rEddy's Grasim and ICICI Bank were the top gainers while Tech Mahindra, HCL Tech, M&M, Hero Moto and Bajaj Finance led the losses.
