Stock Market Highlights: The Indian market ended lower on Thursday dragged by heavy selling in banks, auto, financial services, media and metal stocks amid negative global cues. Broader markets also reeled under pressure with Nifty Smallcap100 and Nifty Midcap100 trading lower. Among sectoral indices, Nifty FMCG, Nifty Metal and Nifty Realty were the only sectors that ended in green. UPL and IRCTC ended 11 percent lower each.
Here are the key highlights from today's trading session:
1. Market snaps 7-day gaining streak; Nifty slips below 13,500
2. HDFC Bank, Reliance Industries, ICICI Bank & UPL top Nifty losers
3. FMCG shares lend support to Nifty after brokerages indicates upgrades
4. ITC, HUL, Nestle & Britannia top Nifty gainers
5. Market breadth in favour of declines; advance-decline ratio at 2:3
6. Nifty falls 51 points to 13,478 & Sensex 144 points to 45,960
7. Nifty Bank slips 199 points to 30,510 & Midcap index 171 points to 20,393
8. UPL falls 11% on reports of funds siphoning; company denies the report
9. Cement shares slip as CCI probes companies for cartelisation; UltraTech top loser
10. Autos under pressure as Bosch India flags shortage of critical components
11. SCI hits upper circuit ahead of secretary's meeting w.r.t share sale
12. Yes Bank continues to move hgiher, up over 33% this week
Closing Bell: The Indian market ended lower on Thursday dragged by heavy selling in banks, auto, financial services, media and metal stocks amid negative global cues.
At 3:30 pm, the Sensex ended 144 points lower to 45,960 while the Nifty50 index closed at 13,478, down 51 points. Broader markets also reeled under pressure with Nifty Smallcap100 and Nifty Midcap100 trading lower.
Among sectoral indices, Nifty FMCG, Nifty Metal and Nifty Realty were the only sectors that ended in green. Nifty Media remained the worst-performing index of the day, closing 1.6 percent lower followed by Nifty PSU Bank (-1.5 percent).
Nestle, ITC, Britannia, Hindustan Unilever, Adani Ports were the Nifty50 top gainers while UPL, UltraTech Cement, Shree Cement, Tata Motors and Mahidnra & Mahindra remained the index top losers.
Festive season sets the pace for the growth of India's real estate
India’s 2020 festive season has brought a cheer to the real estate industry with a much-needed boost for home sales, for products cutting across categories. Amidst all the positivity, there was a sobering reality of the downturn in the Indian economy, which had witnessed a steep fall and a liquidity crunch among consumers with a caution to spend. Although there are challenges of the pandemic that the country continues to face today and its impact on overall consumer sentiment, the festive season has restored the faith that real estate continues to be a preferred choice of long-term investment.
With a substantial revival in consumer sentiment, the industry has witnessed an upward trend in sales across all cities. With an improved attractiveness for real estate as a preferred asset class, against other traditional alternatives, home buyers are looking at safeguarding their accumulated savings by investing in a more long-term asset. Continue reading here
Just In: UPL management to hold conference call at 4:30 pm today. The stock is trading 11 percent lower to Rs 438.60 per share on the NSE.
Market stages an upmove from lows despite trading in red.
India's recovery faster than expected; ADB cuts contraction projection to 8% for FY21
The Asian Development Bank (ADB) on Thursday upgraded its forecast for the Indian economy, projecting 8 percent contraction in 2020-21 as compared to 9 percent degrowth estimated earlier, on the back of faster than expected recovery. Observing that the economy has begun to normalise, the Asian Development Outlook (ADO) Supplement said the second-quarter contraction at 7.5 percent was better than expected.
The economy contracted by 23.9 percent in June quarter of the current fiscal on account of the impact of the coronavirus pandemic. ”The GDP forecast for FY2020 is upgraded from 9.0 percent contraction to 8.0 percent, with GDP in H2 probably restored to its size a year earlier. The growth projection for FY2021 is kept at 8.0 percent,” it said. Click here to read more
CLSA on DLF: Maintain buy call, target raised to Rs 255 from Rs 205 per share. Visibility improves for residential growth. Increase our pre-sales and earnings estimates for FY21-FY23. Expect pre-sales to reach Rs 4,200 crore in FY23 from Rs 2,500 crore in FY20.
Market Watch: Ashish Kyal, Waves Strategy
One can create long positions on Shilpa Medicare for the target of Rs 524, keeping a stop loss of Rs 470.
One can ride the third wave on Praj Industries for the target of around Rs 117 with a stop loss of Rs 105.
Housing sales in Mumbai jump 67% YoY boosted by stamp duty cut, festive demand
Mumbai has recorded a robust 67 percent year-on-year growth in home sales volume at 9,301 units in November 2020, thanks to the by stamp duty cut and festive period of Diwali.
According to property consultant Knight Frank India, at 9,301 units registered in November 2020, the residential sector of Mumbai recorded the highest ever registrations in the month of November over the last 9 years. The registrations in November 2020 have jumped by 17% MoM.
This strong growth of 17 percent MoM in November comes after a robust 42 percent MoM growth during October and massive 112 percent MoM growth during September 2020, when sales of residential property started to show an upward trend after months of COVID-19 induced slowdown.
Stamp duty cut of 300 bps continues to propel residential sales in Mumbai. Most developers have offered to absorb the remaining 200 bps which is resulting in huge savings for the homebuyer, Knight Frank said.
In addition to the stamp duty cut, sales in November were also augmented by the auspicious period of Diwali and reduction of home loan rate to historic lows. Other measures by developers such as deferred payment plans, indirect discounts and offers to negotiate on the final price of the apartment have helped entice homebuyers.
Cadila Healthcare looking to sell animal health business: Sources
Amidst a flurry of deals in the pharmaceuticals space, Gujarat-based Zydus Cadila Group’s Cadila Healthcare is looking to sell its animal healthcare business, CNBC-TV18 has learnt. The ask price is at least $400 million, or Rs 3,000 crore.
Two independent sources with direct knowledge of the development said that Cadila Healthcare is eyeing the rich valuations that the animal healthcare segment commands globally.
Earlier this year, PE firm Carlyle had acquired Sequent Scientific, an animal healthcare-focused firm in a Rs 1,587-crore deal, establishing a benchmark for the space. Read more here
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: Going by the conventional norms of valuations - PE ratio, market cap to GDP - the market is now over-valued. But the markets can remain over-valued much longer than expected. Presently the market is in bull orbit driven mainly by sustained strong FPI inflows and bulls dictating terms. Globally too markets are buoyant, this may continue. However, investors have to be cautious. Slowly raising the level of cash in portfolio would be a conservative but a wise strategy.
IRDAI sources say, not considering any proposal to ban credit life policies. Only proposal under consideration is to ban credit linked group health policies. Positive for ICICI Pru, HDFC Life & Max Life
Snowman Logistics sings MoU with SpiceJet: Snowman Logistics has signed a MoU With SpiceJet for transportation of COVID-19 vaccines in required temperature zones. It will handle ground services including warehousing and consumption points for COVID-19 vaccines. SpiceJet to provide air connectivity for temperature-controlled distribution of vaccines. (Source: Moneycontrol)
Cement stocks: UltraTech Cement is trading 3 percent lower while ACC, Ambuja Cements, Ramco Cements are down 2-4 percent in trade today after India’s antitrust body on Wednesday conducted raids at offices of UltraTech Cement and two subsidiaries of the world’s largest cement maker LafargeHolcim, two sources close to the matter told Reuters. Several officers of the Competition Commission of India (CCI) were involved in search operations conducted simultaneously at multiple locations in India, late into the evening, the sources said, asking not to be named because of the confidential nature of the raids.
UPL CEO Jai Shroff clarifies that news report w.r.t whistleblower allegations is completely malicious.
'Auditors had reviewed transactions between companies that had rented my residence. Rental agreement is cancelled, the house is no more rented to UPL'
Buzzing Stock: UPL shares declined over 13 percent over reports that made rounds of a whistleblower has accused promoters of siphoning funds. The whistleblower alleges that UPL entered into rent deals with the shell company owned by its employees and paid crores in rent for properties held by the latter, which was earlier owned by UPL chief Jaidev Shroff himself, Economic Times reported.
According to the details submitted by the whistle blower, there seem to be certain corporate governance issues with regards to transactions done by promoters of UPL.
Amarjeet Maurya from Angel Broking: We keep Maruti Suzuki India's target price at Rs 8,631 per share given that it is the market leader in the PV segment, commanding a market share of about 50 percent. The company has continuously focused on gaining market share in the SUV segment on the back of new launches and facelift in the SUV segment. In the last four-month, the company has reported healthy sales number year-on-year growth. Going forward, we expect the company will sustain its growth momentum number on the back of the lower inventory level. Hence, we are positive on the stock.
PSU Banks to raise Rs 20,000 cr more this fiscal from market. Fund raising by PNB likely next week. On IDBI Bank stake sale, sources say work is in progress
Sriram Iyer, Senior Research Analyst at Reliance Securities: Domestic gold and silver crashed on December 9, tracking weak overseas prices. The stalemate over the US stimulus aid package and a stronger dollar weighed on prices.
Gold-backed ETFs shrank in November, ending a year-long buying spree that helped to push gold prices to record highs, the World Gold Council (WGC) said.
ETFs reduced their stockpile by 107 tonnes in November, the second-biggest monthly outflow on record, the WGC said.
Domestic bullion could trade flat on December 10 morning, tracking international prices. Technically, MCX February gold fell hard from 65-Daily Moving Average near Rs 50,150 and gave a sharp fall up to Rs 49,150. Now Rs 49,450-49,700 will act as resistance. Support is at Rs 48,900-48,600 levels.
On MCX, March silver corrected 2.5 percent from Rs 64,800 levels and prices started to trade below the 50-day Daily Moving Average near Rs 63,600. Support is at Rs 62,850-60,500 and resistance is at Rs 63,800-64,450.
Nifty Bank dips further
Rupee Opens: Indian rupee opened 13 paise lower at 73.69 per dollar on Thursday against Wednesday close of 73.56, amid selling seen in the domestic equity market. On December 9, rupee ended marginally lower at 73.56 per dollar versus Tuesday's close of 73.52.
Buzzing | L&T Technology Services shares hit 52-week high on $100 million multi-year order
Shares of L&T Technology Services touched a 52-week high of Rs 1,883.45 on the BSE after the company won a multi-year order. The company said that it has been selected by a global O&G major to be the primary engineering partner to support two of their integrated refining and chemicals manufacturing facilities in US. This is a multi-year engagement with a potential value of more than $100 million, it added.
Maruti Suzuki India to hike prices from January
Car market leader Maruti Suzuki India said it will increase prices of its vehicles from January to offset the adverse impact of rising input costs. Over the past year, cost of the company’s vehicles have been impacted adversely due to increase in various input costs, Maruti Suzuki India said in a regulatory filing. ”Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase in January 2021. This price increase shall vary for different models,” it added.
At present Maruti Suzuki sells a range of vehicles from entry-level small car Alto with price starting at Rs 2.95 lakh to multi-purpose vehicle XL6 priced up to Rs 11.52 lakh (ex-showroom Delhi). Read more here.
Technical View | The Nifty has definitely reacted from the resistance corridor of 13,400-13,700. Yesterday we were trading closer to the upper end of the range, today we are around the lower end of the range. If the markets need to breakdown or correct sharply, it would need to break 13,100 which is strong support for the index. Until then, the trend continues to remain bullish, says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Govt to sale stake in IRCTC: Shares of Indian Railway Catering & Tourism Corp (IRCTC) fell 13 percent intraday as government is planning to sell up to 20 percent stake in the company through an Offer for Sale (OFS) which opens for subscription on Thursday.
"Offer for Sale in IRCTC opens tomorrow for Non Retail investors. Day 2 for retail investors. Govt. would divest 15 percent equity with a 5 percent green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in a tweet.
Apollo Tyres: Warburg Pincus’ stake rises to 17.97% from 8.92% since September 30
Opening Bell: The Indian market opened lower on Thursday after multi-day gaining streak. The Sensex opened 100 points lower to 45,999 while the Nifty50 index opened at 13,488, 41 points lower.
Sectoral indices too have opened flat. The Nifty Bank index is down 0.5 percent while the PSU Bank index has opened 0.8 percent lower. Nifty I.T. and Nifty Media are down 0.5 percent each. Other indices are flat.
PowerGrid, Maruti Suzuki, SUn Pharma, Cipla and Nestle India were the Nifty50 top gainers while UPL was the top loser, trading 7 percent lower followed by Infosys, UltraTech Cement, Axis Bank and IndusInd Bank.
Stock Update: M&M Finance says it won’t get impacted from draft regulations on NBFCs by RBI. It believes, RBI intends to have NBFCs remain well capitalised. It would be looking at why to give dividends & raise fresh capital. Also, M&M Finance expects net NPA to fall below 4%.