Stock Market Highlights: Indian equity benchmark indices, Sensex and Nifty ended the week higher for the sixth consecutive week on Friday led by PSU banks and oil stocks. ONGC remained the top Nifty gainer of the day, ending 5.4 percent higher. Meanwhile, ITC was the top gainer this week, surging over 9 percent. Broader markets settled in-line with the benchmarks, while Nifty Metal remained the best-performing index of the day.
Here's how markets fared this week:
Sensex up 2.2%, Nifty up 1.9%,
Nifty Bank up 1.7%, Midcap Index up 1.2%,
Nifty PSU Bank up 7.7%, Nifty FMCG up 6.2%,
Nifty Media up 4.8%, Nifty Junior up 1.6%,
Nifty IT up 1.6%, Nifty Pharma up 0.2%,
Nifty Auto down 1.1%, Nifty Metal down 0.4%
ITC up 9.2%, HUL up 9%,
ONGC up 7.8%, GAIL up 5.2%,
NTPC up 4.1%, Kotak Mahindra up 4%,
L&T up 4%, Coal India up 3.8%,
IOC up 3.7%, Nestle India up 3.4%,
SBI up 3.2%, Asian Paints up 3.2%
UPL down 4.6%, Shree Cement down 4.4%,
Hindalco down 3.7%, Eicher Motors down 3.1%,
M&M down 2.9%, JSW Steel down 2.8%,
Tata Motors down 2.7%, Wipro down 2%,
Divi’s Lab down 1.8%, SBI Life down 1.5%
Closing Bell: The Indian benchmark indices ended higher in the volatile session on Friday with Nifty closing above 13,500 level. At 3:30 pm, the Sensex ended 139.13 points or 0.30 percent at 46,099.01, and the Nifty closed 35.60 points or 0.26 percent at 13,513.90.
ONGC, NTPC, GAIL, Coal India and Tata Steel were among the major gainers on the Nifty, while losers included Axis Bank, Divis Labs, Adani Ports, M&M and Eicher Motors .
Among sectoral indices, Nifty Metal and Nifty PSU Bank indices ended 1 percent each, while selling was witnessed in the pharma, IT and auto names.
About 1,713 shares have advanced, 1,188 shares declined, and 148 shares are unchanged.
Filed ITR? Here's when you will get your refund
An income tax refund is received by the taxpayers when the taxes paid are higher than the actual tax liabilities. Taxpayers file their income tax return (ITR) claiming refund of tax on account of excessive deduction of tax at source or payment of advance tax or self-assessment tax.
For the financial year 2019-20 (the assessment year 2020-21), taxpayers can file ITR by December 31, 2020, and claim a refund.
After filing ITR, it is vital to see how much time it takes to get the refund in the bank account.
According to Sandeep Sehgal, Director, Taxes and Regulatory, AKM Global, a consulting firm, there is no timeline prescribed for the issue of refunds. Read more here
Tapan Patel- Senior Analyst (Commodities), HDFC Securities: Gold prices traded flat with COMEX spot gold prices kept choppy trading near $1836 on December 11. Gold December future contract at MCX were trading marginal down to Rs 49,060 per 10 grams in line with global gold prices.
We expect gold prices to trade sideways to down with COMEX gold resistance at $1850, support at $1820. MCX Gold December support lies at Rs 48,800 with resistance at Rs 49,500.
Stock Update: Indian Hume Pipe's shares traded 4.5 percent higher to Rs 192.20 per share on the NSE after the company has received Letter of Acceptance from State Water & Sanitation Mission, Namami Gange & Rural Water Supply Department (SWSM), Lucknow, Government of Uttar Pradesh for providing water supply schemes in 550 villages of Kanpur Division in Uttar Pradesh at an approximate value of Rs 550 crore.
The proposed Tata Cons-Coffee Day faces some turbulence.
Sriram Iyer, Senior Research Analyst at Reliance Securities: International gold and silver ended flat to marginally lower surrounding vaccine development after an advisory panel to the U.S. Food and Drug Administration recommended approval of the pharma's Covid-19 vaccine for emergency use.
Domestic gold and silver crashed on Wednesday, tracking weak overseas prices.
Technically, LBMA Gold Spot traded on a flat note where it is trading below $1840 levels indicating a Bearish to marginal sideways momentum in the coming sessions. Support is at $1826-$1816 levels. Resistance is at $1845-$1854 levels.
LBMA Silver Spot continues its Bearish momentum below $24.00 could take prices to $23.70-$22.40 levels where Resistance is at $24.60-$25.12 levels.
Domestic bullion could start flat to marginally higher this Friday morning, tracking the international prices.
Technically, MCX Gold February holds a resistance near its 21-Daily Moving Average which is at Rs 49510 levels below which will continue its downside momentum. Support is at Rs 48900-48600 levels. Resistance holds at Rs 49300-49650 levels.
Stock Update: Ircon International share price added 9 percent on Friday after the company has been awarded the work of up-gradation of Gurgaon- Pataudi-Rewari section of NH-352W (design length of 46. 110 km) as feeder route in the state of Haryana on Hybrid Annuity Mode valuing Rs 900 crore on competitive bidding basis by National Highways Authority of India (NHAI).
BSE launches e-Agricultural spot market platform
BSE has launched an electronic spot platform for agricultural commodities "BSE E-Agricultural Markets Ltd. (BEAM)” - through its subsidiary BSE Investments Ltd. This platform will function as a national level, institutionalized, electronic, transparent commodity spot trading platform in line with the Prime Minister's vision to create a “single market”. The platform facilitates spot agricultural commodities transactions across value chain consisting of producers, intermediaries, ancillary services and consumers. The platform will commence beta operations effective from December 11, 2020.
Buzzing: Shares of logistic companies rally up to 14%
The shares of logistic companies surged up to 14 percent on Friday as positive developments on the COVID-19 vaccine and opportunities ahead for distribution services fuelled optimism about future growth prospects.
Snowman Logistics, Allcargo Logistics, Mahindra Logistics, Navkar Corporation among others rallied between 7 and 14 percent on the BSE as compared to a 0.5 percent gain in the benchmark Sensex.
Investors turned buoyant on the logistic companies following the media reports suggesting a possible policy for the logistics sector from the government soon. Continue reading.
Domestic passenger vehicle wholesales rise nearly 13% in Nov on festive demand: SIAM
Passenger vehicle wholesales in India increased by 12.73 percent to 2,85,367 units in November as against 2,53,139 units in the same month last year riding on the back of festive demand, auto industry body SIAM said on Friday. According to the latest data by the Society of Indian Automobile Manufacturers (SIAM), two-wheeler sales rose 13.43 percent to 16,00,379 units, compared with 14,10,939 units in the same month last year.
Motorcycle sales were at 10,26,705 units as against 8,93,538 units in November 2019, up 14.9 percent. Scooter sales were also up by 9.29 percent at 5,02,561 units from 4,59,851 units in the same month last year.
Three-wheeler sales, however, declined by 57.64 percent to 23,626 units last month as against 55,778 units in November 2019. Read more here.
Sources say Larsen & Toubro has emerged lowest bidder for multiple projects
Should you invest in IPOs for long term?
An initial public offering (IPO) is the process of offering shares of a private company to the public in a new stock issuance. This allows the company to raise capital from public investors who invest in IPOs in exchange for shares in the company.
With the market touching new highs, IPOs are getting lot of buzzes, and seeing this hype, many investors are getting attracted and joining the crowd.
An investor can apply for an IPO through his/her bank account or trading account.
Investing in IPOs isn't as simple as it seems, as subscribers to the IPO don’t have in-depth access regarding business model, management quality and vision. Also, many investors are often confused if they should invest in IPOs for the long term.
According to Pranjal Kamra, CEO of Finology, while a few of the IPOs impress the street with their listing gain, most of them underperform in the long run simply because of the fact that they come with an over expensive valuation. Read more
Gold rate today: Yellow metal trades marginally higher; may face resistance at Rs 49,700 level
Gold prices in India traded a little higher on the Multi Commodity Exchange (MCX) Friday tracking a positive momentum in the international spot prices while silver prices declined.
At 11:00 am, gold futures for February delivery rose 0.11 percent to Rs 49,131 per 10 grams as against the previous close of Rs 49,077 and the opening price of Rs 49,150 on the MCX. Silver futures traded 0.15 percent lower at Rs 63,433 per kg. The prices opened at Rs 63,459 as compared to the previous close of Rs 63,530 per kg.
“Gold prices are stable amid mixed cues. The price is not sustaining at higher levels on developments over the COVID-19 vaccine. However, weak dollar index and stimulus measures in the US and Europe continue to support gold,” said Ajay Kedia, director, Kedia Commodity Comtrade. Click here to read more
TVS Electronics extend gains, stock up 12%
Will not tinker with FY22 estimates of cement stocks owing to CCI probe, says HDFC Securities
HDFC Securities said it will not tinker with FY22 estimates of cement stocks due to the probe carried out by the Competition Commission of India (CCI).
The CCI on Wednesday and Thursday (December 9 and 10) conducted search operations at the offices of some cement companies. The searches were conducted based on suspected price cartelisation by these cement majors, sources privy to the developments told CNBC-TV18.
The, investigations, however, are still underway based on the data collected from these searches, said the sources.
"Will not tinker with FY22 estimates of cement stocks owing to Competition Commission of India (CCI) probe," said Rajesh Kumar Ravi of HDFC Securities in an interview with CNBC-TV18.
According to Kumar, cement demand continues to remain strong throughout the nation except for southern India.
“Our channel checks suggest that north market has grown 5 percent, central more than 10-15 percent in this quarter, east is growing at 20-25 percent, west is also up by 5 percent and south is down around 10 percent year-on-year (YoY), but south is on a recovery phase versus last quarter," he said.
On cartelisation, he said, “There has not been much dent earlier as well in stock prices and even this time I do not see other than a normal profit-booking maybe 3-5 percent.”
Anish Moonka from JST Investments on auto sector: "The $8.5-billion TVS Group has showcased another round of exemplary corporate governance by the move to Align the ownership of group companies with the management of the respective companies. Adding to that, no royalty payments need to be made from companies to TVS family members/ Holding companies. This could lead to massive re-rating in the holding companies of the group which currently trade at a huge discount to their underlying values. The progress of the 'Memorandum of family settlement' looks to be a key monitorable. The listed companies of the TVS group include TVS Motors, Sundaram Clayton, Sundaram finance, Sundaram Fasteners, TVS Srichara, Wheels India, Sundaram Finance Holdings, TVS Electronics, India Nippon Electricals & Sundaram Brake Linings," said Moonka to CNBC-TV18.com.
Oil-related stocks rally due to high crude prices, vaccine rollout; ONGC jumps 13%, GAIL surges 7.5%
Oil stocks rallied on Friday on the back of higher crude prices, also supported by the optimism on the COVID-19 vaccine. The top gainer of Nifty50 index and the oil space is ONGC, gaining as much as 13 percent to Rs 104.40 per share on the NSE. At 11:30 am, the stock traded 7.5 percent to Rs 98.60.
Meanwhile, GAIL gained as much as 7.5 percent to Rs 128.80 while Indian Oil Corporation rose 4.34 percent higher to Rs 95.55. All these three stocks remained the top gainers of the Nifty50 index.
This is the first-time since March this year that Brent crude rose above $50 on COVID vaccine rollout. The bullish sentiment offset a large increase in US inventories that showed there was still ample supply available.
Currently, the February contract of Brent crude on the Intercontinental Exchange is trading at $50.29, higher by 2.93 per cent from its previous close.
The surge in Brent crude also comes a day after the Energy Information Administration reported an increase in crude inventory levels in the US. According to the EIA data, inventory of crude oil in the US rose by 15.2 million barrels against the analysts' projection of a 1.4 million-barrel decline.
Further, the Organization of the Petroleum Exporting Countries (OPEC) and Russia have agreed to a marginal increase in oil production from January 2021 onwards. The increase in crude oil will most likely also lift the retail price of petrol and diesel in India.
Tata Motors tells us that there continues to remain some COVID-related challenges in the supply chain including embedded electronics across the auto industry globally.
In this tight supply situation, co sees an impact in some applications in their CV business.
Jaiprakash Associates lenders revive restructuring plan, hopeful of resolution outside IBC within a month
An ICICI Bank-led consortium of lenders is finalizing a resolution plan for debt-ridden Jaiprakash Associates Limited (JAL) outside the bankruptcy process, and hopes to submit it to the Reserve Bank for its approval within a month, three people in the know told CNBC-TV18.
As per people in the know, the resolution plan underworks is similar to the restructuring plan that lenders had firmed up before the RBI drew up the second list of defaulters to be sent to NCLT (National Company Law Tribunal) in 2017.
Banks are working out this restructuring plan under RBI’s June 7 circular for resolution of stressed assets. It involves splitting the company’s approximately Rs 15,000 crores of bank debt into sustainable and unsustainable portions, and hiving off parts of the businesses for sale to strategic investors, CNBC-TV18 has learned. For more, click here
Gayatri Projects shares hit 5% upper circuit on winning orders worth Rs 1,300 cr
The shares of Gayatri Projects were locked in a 5 percent upper circuit in the early trade on Friday after the company’s water division bagged 3 Letters of Award (LOAs).
The stock jumped 5 percent to Rs 36.20 apiece on the BSE. The shares have risen over 50 percent in the last one month.
In a regulatory filing, the company said it has received 3 Letters of Award (LOAs) for Pipe Drinking Water Schemes from Namami Gange and Rural Water Supply Department in the State of Uttar Pradesh.
It will work in a joint venture where its share is 97.5 percent for a total value of Rs 1,332 crore.
Gayatri Projects Ltd. is the flagship company of diversified Gayatri Group that has interests in infrastructure, power, hospitality, real estate and industry.
Hotels are seeing an uptick in leisure travel, but corporate is yet to see a pick-up, say lemon Tree. Chalet Hotels says, events & marriages are picking up.
Technical View | The Nifty is in a rangebound phase between 13,400 and 13,700. This is also a profit booking resistance zone. Traders should maintain caution at these levels and book profits at regular intervals. Timely upgrading of stop losses should also happen as the markets can get volatile. We have a good support at the 13,300-13350 levels, says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Gold reverses gains as investors look past weak U.S. jobs data: Gold eased on Thursday as a failure to significantly breach the $1,850 per ounce resistance level prompted technical selling, with persistent overall vaccine-driven optimism also prompting investors to look past weak U.S. jobs data.
Spot gold fell 0.2% to $1,836.01 per ounce at 11:44 a.m. EST (1644 GMT). U.S. gold futures were up 0.1% at $1,839.90.
Nilesh Shah of Kotak Mahindra AMC advises investors to buy high quality stocks rather than 'momentum' stocks
Mrs. Bectors Food fixes IPO price band at Rs 286-288 per share
Bread and biscuit maker Mrs. Bectors Food Specialties Ltd will launch its initial public offer (IPO) for subscription on December 15 at a price band fixed at Rs 286-288 per share.
The Rs 540.54 crore-IPO would comprise of a fresh issue of equity shares worth Rs 40.54 crore and an offer for sale (OFS) worth Rs 500 crore by existing shareholders Linus Pvt Ltd, GW Confectionary PTE. Ltd., GW Crown PTE. Ltd and Mabel Pvt Ltd.
The lot size of the issue is 50 shares. A retail-individual investor can apply for up to 13 lots (650 shares or Rs 187,200).
This offer includes a reservation of up to such Equity Shares aggregating up to Rs 50 lakh for purchase by eligible employees. A discount of Rs 15.00 per equity share shall be offered to eligible employees bidding in the Employee Reservation Portion. Read more
Opening Bell: Indian equity benchmark indices opened higher on Friday following a bounce back in Asian peers as progress on COVID-19 vaccines boosted investor sentiment.
At 9:15 am, the Sensex opened 0.22 percent, or 100.44 points, higher at 46,060.32, while the Nifty50 index opened at 13,512.30, up 34.00 points, or 0.25 percent. Broader markets outperformed the frontline indices with Nifty Smallcap100 and Nifty Midcap100 indices up 0.99 percent and 0.83 percent, respectively.
All the sectoral indices were trading in the green led by Nifty PSU Bank, Nifty Metal, Nifty FMCG and Nifty Media.
ONGC, GAIL India, UPL, IOC and NTPC were the Nifty50 top gainers, while Adani Ports & SEZ, Nestle India, Infosys, Tata Motors and Asian Paints were the top index losers.
Blackstone signs deal to buy Piramal Glass for $1 billion
Private equity major Blackstone has signed a deal to acquire Piramal Group’s Piramal Glass for around $1 billion.
The deal contour includes an upfront payment of $850 million while Piramal Group will get approximately $150 million on achieving certain milestones, to be paid over 2 years.
CNBC-TV18 on December 3 had reported on the contours of the deal.
This will be the second billion-dollar deal by Piramal Group this year to capitalise the group which has a large NBFC arm. Earlier in the year, the group had sold US-based DRG for around a billion dollars. Piramal has taken many steps to raise funds via a rights issue, CDPQ investments, sale of a minority stake in Piramal Pharma to Carlyle. Here's more on this