Thank you readers! Here are the key highlights from today’s session
– Sensex & Nifty End Flat But At Record Closing Highs
– Midcaps Outperform Frontline Indices, Index Up 0.6%
– Nifty Bank Closes Flat With HDFC Bank Being Top Loser
– HDFC Bank Drags Nifty By 27 Points & Nifty Bank By 176 Points
– Market Breadth Favours Advances; Advance-Decline Ratio At 3:1
– Sensex Gains 15 Points To 44,633 & Nifty 20 Points To 13,134
– Nifty Bank Slips 14 Points To 29,449 While Midcap Rises 126 Points To 20,127
– Maruti Top Nifty Gainer With 7% Move On Optimistic Commentary
– IndiGo & SpiceJet Move Higher After Govt Raises Airline Capacity To 80 percent
– Piramal Enterprises Surges 5 percent On Reports Of Piramal Glass Being Acquired By Blackstone
Closing Bell: Sensex ends flat, Nifty belo 13,150; HDFC Bank, IT stocks drag
Indian indices pared gains to end flat on Thursday after hitting all-time highs at the opening. Markets gave up gains dragged by IT stocks and heavyweight HDFC Bank after the RBI advised the lender to temporarily halt launches of the Digital 2.0 programme, sourcing new credit card customers. The Sensex ended 14 points higher at 44,632 while the Nifty rose 20 points to settle at 13,134. Broader markets, however, outperformed benchmarks with the Nifty Midcap and Nifty Smallcap indices up over half a percent each. On the Nifty50 index, Maruti, NTPC, ONGC, Hindalco and SBI were the top gainers while SBI Life, HDFC Bank, TCS, Infosys and Bajaj Auto led the losses. In intra-day deals, The Sensex rose as much as 335 points to hit a new high of 44,953 while the Nifty added 101 points to its record high of 13,215.
On Gold: Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities
“Gold continued it positive moves on Thursday as well, taking broad supports of $1780 in Spot and 48500 in MCX on Monday it has continued to cover the lost ground and today trading at $1826 & 49400 respectively. The recent rise in price id due to the rising numbers of Covid-19 in US & Euro zone along with hopes of US stimulus package which keep dollar price weak and bullion higher”
Investec Cap bullish on electronics manufacturing and chemicals
There are investment opportunities in industrial plays which are quite cheap currently, according to Mukul Kochhar, co-head of equities at Investec Cap Services. “Stocks that are trading below cash on balance sheet, good companies with no history of either making a loss are trading below the cash on the balance sheet and this is where I think the next value picking opportunity is going to be based on valuations, some industrial plays which are just very cheap,” he elaborated. On specific stocks and sectors he said, “What is common in sectors where we have done well is economies of scale. Economies of scale is key for India success and industries and we see that happening in a few sectors.” Watch video for more
IGX gets PNGRB nod to operate as Gas Exchange for 25 years
The Indian Energy Exchange on Thursday said its arm, Indian Gas Exchange (IGX), has secured authorization from the Petroleum and Natural Gas Regulatory Board (PNGRB) to operate as a Gas Exchange. IGX is India’s first automated delivery-based gas trading platform.
IGX has secured the necessary authorization to operate as a Gas Exchange as per the provisions of the PNGRB (Gas Exchange) Regulations, 2020 for a period of 25 years, an Indian Energy Exchange (IEX) statement said. According to the statement, the regulations were notified by the PNGRB on September 28, 2020.
IGX had submitted its application for authorization on October 8, 2020. ”With this development, IGX has become the first regulated gas exchange in the country. The Exchange will play an instrumental role in transparent discovery of gas prices, accelerate investments in the value chain, aid in capacity utilization of pipelines as well as boost consumer confidence and in turn increasing gas demand in the country,” PNGRB Chairperson D K Sarraf said. Read more here.
Alembic Pharma receives USFDA approval for Metolazone tablets
Drug firm Alembic Pharmaceuticals on Thursday said it has received approval from the US health regulator for Metolazone tablets, indicated for the treatment of salt and water retention caused by heart failure or kidney disease. The approved product is therapeutically equivalent to the reference listed drug product Zaroxolyn Tablets 2.5 mg, 5 mg and 10 mg of Lannett Company, Inc.
In a regulatory filing, Alembic Pharmaceuticals said ”it has received approval from the US Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) Metolazone tablets USP 2.5 mg, 5 mg, and 10 mg”.
Metolazone tablets are indicated for the treatment of salt and water retention including edema accompanying congestive heart failure, edema accompanying renal diseases, including the nephrotic syndrome and states of diminished renal function. Read more here.
JUST IN: Dollar Index falls to 90.85, lowest since April 2018. Euro rises to $1.2136, highest since April 2018
Won’t comment on BigBasket deal; evaluating all opportunities: Tata Consumer
Sunil D’Souza, MD and CEO at Tata Consumer refused to comment on whether his company was in talks to buy online grocer Big Basket. According to him, any M&A deal of size and significance that happens in India does pass through the Tata Group. D’Souza said his company is evaluating 5-10 deals at any point of time. “As and when we find a fit and reach a definitive agreement, we will come back,” he said in an interview with CNBC-TV18. Tata Consumer is listed on Big Basket and sell a lot of products though the online platform. More here
Franklin Templeton case: SC directs stay on redemption, slams SEBI
The Supreme Court has directed a stay on redemption requests from investors in the debt schemes wound up by Franklin Templeton. Furthermore, the court has permitted Franklin Templeton to call a meeting of unitholders to seek their consent and approval. The Supreme Court also said that SEBI has a ‘lot to answer for’ and that they will have to take responsibility. The court said that SEBI could have allowed a moratorium of 60 days to Franklin Templeton, but allowed moratorium of only 10 days. The court said that much of the confusion was caused due to SEBI’s ‘sketchy’ regulations, and asked the regulator’s counsel if its client was satisfied with the language of its norms which affect even the common man. More here
Burger King IPO: Issue subscribed 4 times on Day 2; retail portion booked 20 times
The initial public offering of quick-service restaurant chain Burger King India has been subscribed 4 times so far on the second day of the bidding process. The Rs 810-crore public issue has received bids for 29.62 crore equity shares against an IPO size of 7.45 crore equity shares, data available on the exchanges showed. The portion reserved for retail investors is oversubscribed 4 times so far on Day 2, while the portion set aside for non-institutional investors is subscribed 84 percent and that of qualified institutional investors 17 percent. This is the sixth IPO to be fully subscribed on the first day of its bidding process, following Happiest Minds Technologies, Route Mobile, Chemcon Specialty Chemicals, Mazagaon Dock Shipbuilders and Likhitha Infrastructure.
Adani Ports says it has gained market share & expect the trend to continue. It adds, co is on track to beat target of 500 mt/year volumes by 2025 pic.twitter.com/w6JOxRdyXB
— CNBC-TV18 (@CNBCTV18Live) December 3, 2020
Metal stocks rise on increase in steel prices
Shares of metal companies jumped on Thursday after steel firms hiked prices again by $25-35 per tonne after a sizeable hike in the previous month. Steel prices in India had rallied by Rs 4,000-5,000 per tonne (10-13 percent) MoM in November 2020. The metal index rallied over 2 percent with all its constituents in the green. In comparison, the Nifty50 index was up around 0.2 percent. In the Nifty Metal index, Hindalco, Tata Steel, SAIL, NMDC rose between 2-4 percent. Other stocks like JSPL, NALCO, Coal India, JSW Steel were also positive for the day. In a recent report, brokerage house Morgan Stanley said that it sees a potential further hike in prices in December. Price hikes, even if sustained for a few months, could drive earnings upgrades, added the brokerage. It prefers Tata Steel and JSPL among steel companies. More here
Tata Chemicals jumps 9% after Tata Sons buys shares in the company
Tata Chemicals gained more than 8 percent in trade on Thursday after Tata Sons, a promoter of the company, purchased over 18 lakh scrips of the firm worth Rs 76 crore in the open market on Wednesday. The stock rallied 8.89 percent to Rs 464.85 per share on the NSE. As per the data on NSE, Tata Sons bought total 18,07,245 shares of the company at an average price of Rs 420.92. This took the total deal value to Rs 76.07 crore. As per Tata Chemicals’ shareholding data for September 2020 quarter, Tata Sons held a 29.39 percent stake in the company as a promoter. Not just Tata Sons, Life Insurance Company (LIC) has also acquired 52.39 lakh shares (2.05 percent) stake in Tata Chemicals between January 8 and November 17, taking its total stake in the company to 7.09 percent from 5.03 percent earlier. More here
OPEC+ resumes talks on 2021 oil policy amid disagreements
OPEC and Russia resume talks on Thursday in a bid to define policies for 2021 after an initial round of discussions this week failed to bring a compromise on how to tackle weak oil demand amid a second coronavirus wave. The group of OPEC and allies, known as OPEC+, had been widely expected to roll over existing oil cuts of 7.7 million barrels per day, or 8 percent of global supplies, at least until March 2021. But after hopes for a speedy approval of anti-virus vaccines spurred an oil price rally at the end of November, several producers started questioning the need to tighten oil policy, advocated by OPEC leader Saudi Arabia. OPEC+ sources have said Russia, Iraq, Nigeria and the United Arab Emirates have all to a certain extent expressed interest in supplying the market with more oil in 2021. More here
RBI ‘advises’ HDFC Bank to temporarily halt launches of Digital 2.0 programme
The Reserve Bank of India (RBI) has issued an order over HDFC Bank with regard to certain incidents of outages in the internet banking/ mobile banking/ payment utilities of the Bank over the past 2 years. In the order, RBI has advised HDFC Bank to temporarily stop all launches of the Digital 2.0 program and sourcing of new credit card customers. “The RBI vide said Order has advised the Bank to temporarily stop i) all launches of the Digital Business generating activities planned under its program ‐ Digital 2.0 (to be launched) and other proposed business generating IT applications and (ii) sourcing of new credit card customers,” HDFC Bank said in a regulatory filing. RBI has also noted the recent outages in HDFC Bank’s internet banking and payment system on November 21, 2020, due to a power failure in the primary data centre. More here
JUST IN: India November Services PMI at 53.7 Vs 54.1 & Composite PMI at 56.3 Vs 58.0 month-on-month
Just In | RBI has issued an order to HDFC Bank with regard to certain incidents of outages in the internet banking/ mobile banking/ payment utilities of the Bank over the past 2 years, including the recent outages in the Bank’s internet banking and payment system on November 21, 2020, due to a power failure in the primary data centre.
The RBI order has advised the Bank to temporarily stop i) all launches of the Digital Business generating activities planned under its program ‐ Digital 2.0 (to be launched) and other proposed business generating IT applications and (ii) sourcing of new credit card customers. In addition, the order states that the Bank’s Board examines the lapses and fixes accountability. The above measures shall be considered for lifting upon satisfactory compliance with the major critical observations as identified by the RBI.
BSE executes physical deliveries of gold under India good delivery standard
BSE on Wednesday said it has completed another round of physical deliveries of gold under the India Good Delivery standard on its commodity derivatives platform. The exchange executed delivery of gold and silver to the tune of Rs 1 crore in the ‘options in goods’ framework, marking the sixth consecutive month of delivery at its designated vault in Ahmedabad, Gujarat, BSE said in a statement.
The ‘options in goods’ contracts on gold mini and silver kg based on spot prices was launched from June 1, 2020. These contracts are converted into physical delivery on expiry. The refined gold delivered on the exchange platform was produced by Parker Precious Metals LLP.
Technical View | We had a marginal gap up opening and have again come to test the 13,150 level which is a crucial point for the Nifty. We need to keep above this level on a consistent basis in order to continue the upside rally. If that happens, we could reach the levels of 13,250-13,300. When the markets corrected yesterday, strong support was made at the 12,950-13,000 level. Keeping that as a new base, traders can go long on this market, says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Burger King IPO subscribed 3x on Day 1 on strong retail participation
Burger King India’s initial public offering was subscribed three times on Wednesday, the first day of the issue. The retail investor portion of the IPO was subscribed 15.6 times, the high networth individual (HNI) and institutional investor portion were subscribed 16 per cent and 70 per cent respectively. A day earlier, the company had issues shares worth Rs 365 crore to 55 anchor investors at Rs 60 per share. Burger King India is looking to raise Rs 450 crore from the IPO. The proceeds will be used to rollout new stores and repay debt. The IPO will also comprise of secondary share sale worth Rs 360 crore.
Market Watch: Vikas Khemani, Founder, Carnelian Capital Advisors
I feel NBFCs with a solid background and with a solid business model will come back – all of them may not survive but solid NBFCs like Bajaj Finance and many more definitely will come back. They cater to a particular need which the banking cannot cater. So those niche NBFCs will continue to do well.
On auto ancillaries
Auto ancillary stocks are expected to do very well. From next three-five years perspective, auto ancillaries industry can see 15-20 percent kind of volume growth contributed by domestic as well as the international demand.
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