CNBC-TV18 Market Live: Sensex gains over 250 points, Nifty above 13,400; PSU Banks, auto stocks lead


Former IndusInd Bank MD Romesh Sobti likely to join Aditya Birla Capital board

After a successful stint at the helm of IndusInd Bank, Romesh Sobti is likely to join the board of Aditya Birla Capital, sources said.

Aditya Birla Group’s financial services arm Aditya Birla Capital has applied for Reserve Bank of India (RBI) approval for Sobti’s induction on its board, added sources.

Sobti, who retired as MD and CEO of IndusInd Bank in March this year, is likely to be private equity firm Advent’s nominee on AB Capital board. He joined Advent as Operating Partner.

Advent holds a 4.15 percent stake in Aditya Birla Capital with an investment of Rs 1,000 crore.

The industry veteran Sobti was MD and CEO of IndusInd Bank since February 1, 2008.

Advent and Aditya Birla Capital did not offer any comment on CNBC-TV18’s query.

Sources say Canara Bank QIP gets demand for around Rs 5,000 crore vs issue size of Rs 2,000 crore



Views on November AMFI Data by Mr Akhil Chaturvedi, Associate Director & Head of Sales, Motilal Oswal Asset Management Company: “November 2020 has be a one the better months for equity markets with Nifty 50 at all-time high and a very strong recovery in the mid and small cap indices, with mid and small caps after three years of negative returns turned positive for the CY 2020. We have also seen record FII buying to the extent of 60k cr in month of November backed by strong liquidity, lower interest rates and increased interest in emerging markets.

The markets are clearly pricing in the positives of recovering economic data points, lower interest rates and sign of vaccine coming out very soon and all of this leading to a very positive impact on earnings in coming quarters and more specifically FY 22.

Now, optically from the lows of March 2020 correction markets have given some stupendous returns and leading to belief that markets are over-heated and therefore outflow from equity mutual funds to the extent of 35k cr highest ever seen. Adjusted for inflows of 17k cr (50% of which would be SIP flows) the net redemptions have been almost 18k cr.

All of these outflows would not have gone completely out of equities as an asset class, but probably moved to direct equities as investors have had some successes in past few months investing directly, some part of this liquidity could have also flown to real estate with renewed interest amongst genuine buyers wanting to own home at lower interest rates and falling taxes and prices. There also investors who would be sitting on cash to deploy once again post any meaningful correction in near future.

Similar  trends have been witnessed in past as well, it will be interesting to see market movements vs. domestic flows trend in next few months and what would be the trigger points which would lead retail/ HNI investors come back to equities once again meaningfully.”

Gold rate today: Yellow metal rises above Rs 50,000 per 10 gms level; Silver eases

 

Gold prices in India traded above Rs 50,000 per 10 grams level on the Multi Commodity Exchange (MCX) Tuesday tracking a positive trend in the international spot prices.

At 11:00 am, gold futures for December delivery rose 0.27 percent to Rs 50,082 per 10 grams as against the previous close of Rs 49,946 and the opening price of Rs 50,065 on the MCX. Silver futures traded 0.36 percent lower at Rs 65,264 per kg. The prices opened at Rs 65,388 as compared to the previous close of Rs 65,499 per kg.

“Gold prices are likely to trade with a positive bias amid a weak US dollar. Hopes of a stimulus package in the US and lower interest rates are supporting the yellow metal. Hence, any dips should be used as buying opportunity,” said Amit Sajeja, VP Research – Commodities & Currencies, Motilal Oswal. Read more

Stock Update: Godrej Properties share price touched 52-week high of Rs 1,231.60, adding 2 percent in the morning trade after the real estate company said it would develop a residential project in Bengaluru. The company entered into an outright transaction to purchase a well- located land parcel in Whitefield, Bengaluru. Spread across 18 acres, the project would offer 0.22 million square meters (2.4 million square feet) of saleable area of primarily residential apartments.

Centre tells SC that if the interest is waived off on all types of loans, amount forgone would be over Rs 6 lakh crore & that this was the reason why interest waiver was not even considered.



Goa Carbon Shares Hits Upper Circuit After November Production Jumps 58%

Goa Carbon share price hit 5 percent upper circuit on BSE after the company declared its business performance for the month of November.

November 2020 production of the petrochemical company was up by 58.8 percent at 14,309.200 MT against 9,006.000 MT in October 2020. The three plants of the company including Bilaspur Plant produced 434.200 MT while the Goa Plant produced 5,590.000 MT and the Paradeep Plant produced 8,285.000 MT.

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking: The way the market is ignoring any unfavorable news flow and just focusing on positives, is a perfect characteristic of a ‘Bull Market’. But at the same time, as a trader, such euphoric situation is difficult to ride after one point, because sooner or later, one surprising down move (especially overnight) can catch you on the wrong foot. 

The level of 13,400-13,500 are the immediate levels in the upward direction; whereas on the lower side, 13,292-13,242 should be seen as key supports. Any decisive move below 13,242 would result in an extended profit booking in the market. At present, midcaps are enjoying their merry days and hence, breakout candidates are fetching handsome returns. But from here on, one should reduce the position size in midcaps too and should follow strict stop losses, because any day when profit booking aggravates, breakout failure is imminent.

Canara Bank’s shares rally over 12% in two days as it launches Rs 2,000 crore QIP

The state-owned lender on Monday after it launched a Rs 2,000 crore qualified institutional placement (QIPs) to raise funds from the institutional investors.

The stock gained as much as 7.7 percent to Rs 126.45 per share on the NSE. At 10:47 am, the shares were trading 6 percent higher to Rs 124.75. In fact, the stock has rallied over 12 percent in the last two days. In the past one month, the stock has outperformed the market by surging 36 percent, as compared to a 9 percent gain in the S&P BSE Sensex.

The bank has set the floor price for the QIP at Rs 103.50 per share. In its regulatory filing, the bank’s sub-committee– Capital Planning Process of the bank authorised the opening of the QIP issue and approved the floor price.

The lender said, “Subject to compliance with applicable laws, our Bank intends to utilize the Net Proceeds for (i) towards augmenting our Bank’s Tier I Capital to support growth plans and to enhance the business of our Bank; and/ or, (ii) general corporate requirements or any other purposes, as may be permissible under the applicable law and approved by our Board or its duly constituted committee.”

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments: The market is moving from strength to greater strength. One must be cautiously long in this market as we are in a passage of resistance. This range is between 13400-13700 so while the odds are that we will get past these selling pressure zones, traders should consider booking profits at regular intervals while continuing to remain on the long side.

Rupee Opens: Indian rupee opened 8 paise higher at 73.82 per dollar on Tuesday against previous close of 73.90, amid buying seen in the domestic equity market. On December 7, rupee ended lower at 73.90 per dollar against Friday’s close of 73.78.

Technical View | The market is moving from strength to greater strength. One must be cautiously long in this market as we are in a passage of resistance. This range is between 13,400-13,700 so while the odds are that we will get past these selling pressure zones, traders should consider booking profits at regular intervals while continuing to remain on the long side, said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.

Opening Bell: Indian equity benchmark indices opened higher on Tuesday led by gains in PSU banks and auto stocks amid cautiousness in the Asian markets.

At 9:15 am, the Sensex opened 0.31 percent, or 141.83 points, higher at 45,568.80, while the Nifty50 index opened at 13,393.85, up 38.10 points, or 0.29 percent.

Broader markets continue to outperform the benchmarks with Nifty Smallcap100 and Nifty Midcap100 indices up 0.90 percent and 0.86, percent respectively.

Among sectoral indices, the Nifty PSU Bank, Nifty Auto, Nifty Media, Nifty FMCG and Nifty IT saw the most gains while Nifty Private Bak was the only to trade under pressure.

UPL, GAIL India, UltraTech Cement, Bharti Airtel and HCL Technologies were the top Nifty50 gainers, while Sun Pharmaceuticals, Adani Ports & SEZ, Coal India, Axis Bank and IndusInd Bank were the top index losers.

On the global front, Asian stocks came under pressure on Tuesday as investors struggled to balance hopes for more economic stimulus and vaccines with anxiety over a surge in COVID-19 infections, a Reuters report said.

India will not have to wait too long for COVID-19 vaccine: PM Narendra Modi

Prime Minister Narendra Modi on December 7 said Indians will not have to wait for a COVID-19 vaccine for “too long”, but warned against laxity in prevention of coronavirus infection. “One thing, which I will definitely remind you is that the wait for a vaccine is on, but in the past few days, I have met scientists, and feel that the country will not have to wait too long for it,” the prime minister said as he inaugurated the phase one of the construction of Agra Metro project.

“However, there should be no laxity from our side as far as prevention of the infection is concerned. Masks and a distance of two yards is very necessary,” he said.

Crude Update: Oil prices fell on Tuesday, adding to losses from the previous session that came as California tightened its pandemic lockdown through Christmas and coronavirus cases continued to surge in the United States and Europe.

Click here to read the 10 things you need to know before the opening bell.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities: The short term trend of Nifty continues to be positive and the market is inching towards our upper trajectory of 13,500-13,600 levels gradually. Minor consolidation or intraday weakness are expected to be a buy on dips opportunity for the short term. Immediate support is now placed at 13,250.

Click here to read the top stocks to watch out for the day.

Here’s how markets fared on Monday

The Indian benchmark equity indices, Sensex and Nifty ended higher Monday led by gains in financials, FMCG and pharma stocks amid mixed global cues. The Sensex ended 347.42 points or 0.77 percent higher at 45,426.97 while the Nifty gained 97.20 points or 0.73  percent to settle at 13,355.75.

Broader indices outperformed the benchmarks as Nifty Smallcap100 and Nifty Midcap100 indices ended with more than one percent gains each. Among sectors, Nifty PSU Bank, Nifty Pharma, Nifty FMCG and Nifty Media rallied the most while Nifty Realty was the only to end in the red. Read more here

Welcome to our market live blog!

Hi, this is Mousumi Paul from the desk team of CNBC-TV18 and I will be taking you through all the updates during the day. To begin with, expect the Indian market to open on a flat note on Tuesday amid cautiousness in the Asian markets. At 7:15 am, the SGX Nifty was trading 10.50 points or 0.08 percent lower at 13,410.50, indicating a flat start for the Sensex and Nifty50.





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