Stock Market Highlights: Indian indices ended lower after a choppy session on Friday dragged by losses in bank and IT stocks and heavyweight RIL. The Sensex ended 110 points lower at 44,149 while the Nifty lost 18 points to settle at 12,969.
Thank you readers! Here are the key highlights from today's session
- Sensex & Nifty End The Week On A Quiet Note, Close 0.1% Lower
- Midcap Index Surges 486 Points, Sees Best 1-day Gain In Almost 38 Weeks
- Nifty Bank Ends 20 Points Higher; HDFC Bank Pulls Index Higher, Axis Bank Drags
- Nestle, Shree Cem & Power Grid Fall Sharply In Last Hour Of Trade Down 2% Each
- Gas Cos Surge After Regulator Notifies Unified Tariff Rules, IGL Up 11%
- All Sectoral Indices Except Nifty IT End In The Green Today
- Market Breadth Remains In Favour Advances, Ratio At 2:1
- Market Records Highest Monthly Gains In FY20 So Far Supported By Highest-ever FII Flows
- Sensex & Nifty Rise 11.5% In Nov, Nifty Bank Gains 25% & Midcap Index Up 15%
- Bajaj Twins & IndusInd Bank Top Gainers This Mth While UPL & Reliance Top Losers
- Only 4 Nifty Stocks End In The Red For Nov – UPL, RIL, HCL Tech & DRL
Closing Bell: Sensex, Nifty end lower after a choppy session; broader markets outperform
Indian indices ended lower after a choppy session on Friday dragged by losses in bank and IT stocks and heavyweight RIL. The Sensex ended 110 points lower at 44,149 while the Nifty lost 18 points to settle at 12,969. However, broader markets outperforemd benchmarks with the Nifty Midcap and Nifty Smallcap up 2.6 percent and 3.2 percent, respectively. On the Nifty50 index, Tata Motors, Asian Paints, Hero Moto, Divi's Labs and Bajaj Auto were the top gainers while Nestle, Powergrid, JSW Steel, Shree Cement, and HCL Tech led the losses.
Market Watch: Dipan Mehta of Elixir Equities
City Gas Distribution companies
“We would still like to go with the City Gas Distribution companies and since they have come into play last decade or so these have traded significant value and also being of great service to society per se in terms of reducing pollution as well. I am very positive on City Gas Distribution companies and to play the entire gasification of the economy theme I think these are the best plays.”
“I would like to be a bit cautious on autos at this point of time. Most of these auto shares have run-up significantly right from March and no doubt the pent-up demand help these companies but the way two-wheeler sales are flattening out I am bit skeptical that maybe even the passenger vehicle say maybe 2-3 months down the line may start to stagnate.”
EVENTS NEXT WEEK
> Market holiday on Monday : Guru Nanak Jayanti
> Tue - Dec 1
- Auto companies to report Nov sales volume nos from Tuesday onwards
- Nov PMI Details to be out
> Friday - Dec 4
RBI Interest Rate Decision (RBI Policy)
Inventory gains likely if crude stays at current levels: HPCL
“There is a possibility of higher inventory gains if crude prices remain at current levels,” said MK Surana, CMD of HPCL in an interview to CNBC-TV18. HPCL’s volume sales rose 4-5 percent in November over October. “Year on year, if I see November, we should be down around 6-7 percent compared to November 2019 but we need to account for festive timing and assuming that there is not serious scare of further waves of COVID, I think the petrol demand should improve and diesel is improving, but let’s see to what extent,” added Surana. For entire interview, watch video
Market Watch: Hemen Kapadia of KRChoksey Securities
"I have a buy call on Sun Pharma Advanced Research Company (SPARC), stock looks good, we have had crossover buy coming in by the mechanical indicators over coming of the 55 day moving average. Buy it around Rs 180 with a stop loss of Rs 173 and target of Rs 194. The second is a buy call on Sterlite Technologies, brilliant consolidation, looks good, volumes spiked today. So buy at Rs 160 with a stop loss of Rs 154 and a target of Rs 172. Lastly, a sell call on ACC at Rs 1,680 with a stop loss of Rs 1,715 and a target of Rs 1,640, negative divergence, crossover sales, on the verge of making a lower top lower bottom on the daily charts."
Loan Moratorium Case Live Updates: Supreme Court resumes hearing on petitions seeking interest waiver soon
Automobile wholesales in November likely to grow YoY for all segments (ex-M&HCV): Motilal Oswal
According to the Automobiles report from Motilal Oswal Financial Services, Wholesales in Nov’20 are expected to grow YoY for all segments (ex-M&HCV) due to sustaining demand, inventory refilling and normalizing supply-chain bottlenecks at the OEM level. Demand remains skewed towards semi-urban and rural markets for 2W/PVs. In Nov’20, wholesale volumes are estimated to grow at 19.6% for 2Ws on a low base, 12.6% for PVs due to sustaining demand and inventory refilling, and 6.5% for CVs on the back of LCV growth of 14%, but restricted by the around 5 percent decline in M&HCVs. Wholesale volumes for Tractors are expected to grow by 86.5% YoY on robust demand, the timing difference of Diwali in 2020 and a low base.
SBI Chairman Dinesh Khara expects significantly lower GDP contraction in Q2
State Bank of India chairman Dinesh Khara said the second quarter has seen a significant improvement in the activity level. Speaking to CNBC-TV18's Shereen Bhan at Hindustan Times Leadership Summit 2020, he said demand revival has kick-started the economy and expects a significantly lower GDP contraction at the end of the second quarter. On RBI's new banking ownership rules, he said, "Whatever maybe the ownership structure, the most important in banking system is the corporate governance, related party transactions and exposure limits, as long as these things are enforced either through regulation or through oversight mechanism, the banking system should not have much of issue." Watch video for more
Positive trend to sustain, says SBI Life
Mahesh Kumar Sharma, MD & CEO of SBI Life Insurance expects the recent recovery trends to sustain. “We are improving in ULIPs from September and seeing growth over last year with market sentiment improving,” he said. According to him, October numbers were impacted by reintroduction of lockdowns.
“I don’t think there was much of a difference in new business growth in October. The only thing was that there were some pockets where the lockdown was reintroduced and was stricter. So that was one of the factor where October growth was not much over September growth,” said Sharma. For entire interview, watch video
Burger King India IPO opens December 2; price band fixed at Rs 59-60/share
Quick service restaurant chain Burger King India will launch its maiden public offer for subscription on December 2 at a price band fixed at Rs 59-60 per share. This is 5.9-6 times its face value of equity shares. The initial public offering (IPO), which will open for subscription on December 2 and close on December 4, 2020, consists of a fresh issue of Rs 450 crore and an offer for sale of 6 crore equity shares by promoter QSR Asia Pte Ltd aggregating to Rs 360 crore. At a higher price band, the Indian subsidiary of US-based Burger King aims to raise Rs 810 crore via the issue. Investors can bid for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter. It means retail investors can apply for a maximum up to 3,250 equity shares at a higher price band. More here
Gold rate today: Yellow metal trades flat; may face resistance at Rs 48,900 per 10 gms level
Gold prices in India traded steady on the Multi Commodity Exchange (MCX) Friday tracking a muted trend in the international spot prices. The yellow metal is likely to trade in a range for today, analysts said. Gold futures for December delivery rose 0.09 percent to Rs 48,560 per 10 grams as against the previous close of Rs 48,517 and the opening price of Rs 48,508 on the MCX. Silver futures traded 0.52 percent lower at Rs 59,563 per kg. The prices opened at Rs 59,507 as compared to the previous close of Rs 59,873 per kg. Both the precious metals ended flat on Thursday as markets were closed in the US for Thanksgiving Day. More here
Market Watch: Jay Thakkar, VP and HOR at Marwadi Shares and Financials
“Manappuram Finance seems to have provided a very nice breakout from an ascending triangular pattern that has been formed on the daily charts. Currently it is trading around Rs 178. One can buy Manappuram Finance targeting around Rs 190 with a stop loss of Rs 169. The momentum indicators have clearly provided buy crossover for this short-term.”
“The second buy recommendation is on Bajaj Auto, auto space has done quite well especially the two-wheeler and Bajaj Auto has provided a breakout from a falling channel and it has now started to form higher tops and higher bottoms again with a clear buy crossover in its momentum indicators. On a lower side Rs 3,160 is now very crucial support for Bajaj Auto with that as a stop loss one can buy this. Target is around Rs 3,360-3,400.”
Shares of city gas distribution cos rally upto 19% after PNGRB simplifies gas pipeline tariff
Shares of city gas distribution companies rallied upto 19 percent in the early trade on Friday after the oil & gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB) notified regulations for a unified gas transmission tariff structure. Among stocks, Gujarat Gas rallied over 19 percent to Rs 411.20 per share, Indraprastha Gas jumped more than 14 percent to Rs 514 apiece while Mahanagar Gas surged over 13 percent to Rs 1,057 and Adani Gas gained over 8 percent to Rs 344.60 on BSE. According to PNGRB, the tariffs will be applicable based on two-zone structure related to distance from the source of gas. PNGRB has simplified the country's gas pipeline tariff structure to make the fuel more affordable for distant users and to attract investment for building gas infrastructure.
Laurus Labs jumps 5% on acquiring 72.5% stake in Richcore Lifesciences; up 8% in 2 sessions
Laurus Labs share rose over 5 percent on Friday after the pharma firm announced that it has acquired a majority stake in Richcore Lifesciences. In a press filing, the company said, "Laurus Labs has executed Definitive Agreement for the acquisition of majority stake (72.55 percent) in Richcore Lifesciences Pvt Ltd (Richcore)." Richcore is being valued at Rs 340 crore and the cost of acquisition will be Rs 246.7 crore and will be funded through internal accruals, it added. Laurus will be acquiring the existing shareholding in Richcore of both Eight Roads Ventures and VenturEast. The stock rose as much as 5.6 percent to Rs 308.90 on BSE. In just 2 sessions, the stock jumped over 8 percent.
Market Watch: Pritesh Mehta of Yes Securities
“In midcap IT space is looking interesting, one which is looking interesting on charts is HCL Technologies. If you talk about the rally in IT space from April to September it had a strong run-up. From the relative strength perspective HCL Tech was one of the big leader within the IT space and after few weeks of decline it came back it tells me target of Rs 920 is on the cards.”
“Second recommendation is Dr. Reddy’s Laboratories, pharma Index was one of the major underperformer since month of September. Now the way the things are panning out pharma could do well. From relative strength perspective Dr. Reddy looks interesting so buy for a target of Rs 5,200.”
NTPC share price gains after CLSA maintains buy rating
NTPC share price was up 2 percent intraday on November 27 after CLSA maintained buy call on the stock. The global research firm has retained buy on the stock with a target of Rs 140 per share. The company has started leading the RE space, winning 44 percent of 1.1 GW in tenders. The win should add 9 percent to the company's RE portfolio and could earn 11.4 percent equity IRR. This should address its growth and energy mix concerns CLSA believes that the win should improve visibility of the company's beating its 30 percent non-fossil target. It has maintained buy call on its improving ESG, deep-value multiples and high yield.
This pharma firm jumps 15% in just 1 month. Here's why
Specialty chemical firm SRF has risen over 15 percent just this month and it is currently priced at Rs 5,076 which is above 20 day moving average, 50 day moving average and 100 day moving average.
So, what's aiding the gains?
The stock has been surging on the back of strong Q2 numbers and anti-dumping duty on import of refrigerants. The company expects growth of 25 percent in speciality chemicals business. Watch video for more details
Lakshmi Vilas Bank writes off bonds worth Rs 318 crore ahead of merger with DBS Bank
Aday ahead of its merger with the Indian arm of Singapore-based DBS Bank, the debt-ridden Lakshmi Vilas Bank (LVB) on Thursday has written off bonds worth Rs 318.20 crore as per the existing provisions. As per the effective date of merger notified by the Reserve Bank of India (RBI) on Wednesday, LVB will lose its identity on Friday as it amalgamates with DBS Bank India Ltd. The RBI, vide their letter on Thursday, has advised the need to fully write down the Series VIII, Series IX and Series X Basel-III complaint tier-2 bonds before the amalgamation comes into effect from the appointed date (November 27), LVB said in one of its last communications to stock exchanges. More here
Technical View | The resistance level for the Nifty is at 13,050 and if we can cross that, we could head to 13,200 by next week. Strong support lies at 12,800 and thereafter at 12,500. It is only post the breaking of 12,500 that we would consider a short term correction. Until then, the trend remains bullish with a strong upside momentum, Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
AstraZeneca CEO expects to run new global trial of COVID-19 vaccine: Report
AstraZeneca is likely to run an additional global trial to assess the efficacy of its COVID-19 vaccine using a lower dosage, its chief executive was quoted as saying on Thursday amid questions over the results of its late-stage study. Instead of adding the trial to an ongoing US process, AstraZeneca might launch a fresh study to evaluate a lower dosage of its vaccine that performed better than a full dosage, Pascal Soriot told Bloomberg News. ”Now that we’ve found what looks like a better efficacy we have to validate this, so we need to do an additional study,” he said, adding that the new, likely global, study could be faster because it would need fewer subjects as the efficacy was already known to be high. More Here
Kalyan Jewellers likely to launch IPO in Dec: Key things to know
Market Watch: Mehraboon J Irani, MD & CEO, Gini Gems Consultants
“For Tata Steel, even from the present level after the sharp run up which we have seen over the last 10-15 days and including yesterday also I will not be surprised if the stock gives at least another 10-15 percent more upside. Now at the present levels whether the short -term traders or investors should be buying is a difficult call. But if you ask me maybe over the next 6-9 months’ time, I will not be surprised if you see that returns coming over the next 6-9 months another 10-15 percent from here.”
“So while the valuations here and there have become expensive, a correction if any could be again used by investors as a buying opportunity.”
Opening bell: Sensex opens on a flat note, Nifty below 13,000; IT stocks fall
Indian indices opened flat on Friday tracking muted trends in Asian peers. The sentiment was weighed on renewed doubts about a highly-anticipated coronavirus vaccine. At 9:17 am, the Sensex was down 20 points at 44,229 while the Nifty was up 1 points at 12,988. Losses in IT, banking stocks and heavyweight RIL dragged the indices. Broader markets outperformed benchmarks with the Nifty Midcap up 0.7 percent and Nifty Smallcap up 0.4 percent. All sectors, expect Nifty IT, were also positive for the day. The Nifty Auto rose over 1 percent while Nifty Pharma added 0.5 percent. Bank and fin servides indices were also in the green but flat. On the Nifty50 index, NTPC, GAIL, Tata Motors, Britannia and Asian Paints were the top gainers while Powergrid, Hindalco, TCS, RIL and Infosys led the losses.