Sensex and Nifty opened in the red today with most of the sectors dragging. However, markets pared losses by the end of the day. A semblance of calm returned as investors waited for more details to assess the severity of the Omicron coronavirus variant on the world economy, allowing battered stock markets and oil prices to recover.
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Indian stock markets ended in the green today in tandem with a similar recovery in other markets as investors waited for more details to assess the severity of the Omicron coronavirus variant on the world economy, allowing battered stock markets and oil prices to recover
At close, Sensex gained 153.43 points to end at 57,260.58; Nifty rose 14.25 points to 17,040.70. The BSE MidCap and SmallCap indices fell 1-2%. Kotak Mahindra Bank, HDFC Life, HCL Technologies, TCS and Wipro rose the most on Nifty, while BPCL, Sun Pharma, UPL, ONGC and Adani Ports fell. Most key benchmark indices, such as Bank, Auto, FMCG, IT, Metal, Oil & Gas ended in the red, while only IT gained.
Stocks, oil rebound as calm returns after Omicron hit
A semblance of calm returned to world markets on Monday as investors waited for more details to assess the severity of the Omicron coronavirus variant on the world economy, allowing battered stock markets and oil prices to recover.
European shares and U.S. stock futures firmed, oil prices bounced more than $3 a barrel, while safe-haven bonds lost ground as markets latched onto hopes the new variant of concern would prove to be “mild”.
RBI working on introducing central bank digital currency: finance ministry
The Reserve Bank of India (RBI) is working on a plan to introduce a central bank digital currency in phases, given its benefits, the finance ministry told the Lok Sabha on Monday.
The government had received the RBI proposal in October for amending the Reserve Bank of India Act, 1934 to enhance the scope of the definition of ‘bank note’ to include currency in digital form, the ministry said in a written reply to a question in the Lower House.
Nifty IT up over 1%
RBI asked govt to enhance definition of ‘bank notes’ to include digital currency
The union government today informed the Parliament that it has received a proposal from Reserve Bank of India (RBI) last month for amendment to the RBI Act, 1934 to enhance the scope of the definition of ‘bank note’ to include currency in digital form.
“The RBI has been examining use cases and working out a phased implementation strategy for introduction of Central Bank Digital Currency (CBDC) with little or no disruption,” the minister of state for Finance said in a written reply to Lok Sabha.
Bharat Biotech resumes export of Covaxin amid Omicron variant scare
Indian vaccine maker Bharat Biotech said on Monday it has resumed export of its covid-19 shot, Covaxin, and has executed long-pending orders in November. The Modi government on Tuesday, 24 November, had approved the commercial export of Bharat Biotech’s Covid-19 vaccine.
Bill to cancel farm laws passed in Parliament
Parliament on Monday passed the Farm Laws Repeal Bill, 2021 during the first day of its winter session. The Centre’s three farm laws has been repealed by both Lok Sabha and Rajya Sabha in the fastest repeal in recent years amid protests by the opposition parties.
Union Agriculture Minister Narendra Singh Tomar tabled the Farm Laws Repeal Bill 2021 in Rajya Sabha soon after resumption after the temporary adjournment.
Nifty broad market indices
No immediate plan to announce IPO, clarifies CoinDCX
India’s first crypto unicorn, CoinDCX, on Monday clarified that there’s was no immediate plan to announce an initial public offer after it was reported that the exchange plans to go public as soon as the government regulations allow it. A Bloomberg report, quoting CoinDCX’s co-founder Neeraj Khandelwal, said that the firm will decide on a “precise timeline” depending on incoming government regulations.
This newly listed stock could rally over 70% as Centrum Broking sees upside
Brokerage house Centrum has initiated coverage on Aditya Birla Sun Life AMC (ABSL AMC) with a Buy rating as the AMC space, being a fee-based capital-light model, looks attractive given its growth prospects, equity market buoyancy, and expanding investor base and ABSL AMC could be a key beneficiary, given that it is the fourth-largest player.
The brokerage’s Buy rating on the newly listed stock, which made its market debut last month, comes with a target price of ₹1,000 per share, implying a forecast return or potential upside of over 65% from the current level of ₹575. Aditya Birla Sun Life AMC Ltd, the investment manager of Aditya Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and Sun Life Financial Inc of Canada.
LIC gets RBI nod to increase stake in Kotak Mahindra Bank
Private lender Kotak Mahindra Bank today said that Life Insurance Corporation (LIC) has received approval from the Reserve Bank of India to increase its stake in the Bank up to 9.99%.
Currently, LIC holds 4.96% in Kotak Bank, as per the information available from the shareholding pattern till 30 September.
SBI and Capri Global Capital sign MOU to accelerate MSME lending
With an aim to boost MSME lending, the country’s largest bank, the State Bank of India (SBI), has entered into a co-lending arrangement with Capri Global Capital Limited (CGCL). This association will offer strategic and customized financing solutions to the underserved MSMEs of the country in line with RBI guidelines.
“Banks are the backbone of India’s economic growth and as the country pivots to sustainable growth, the banking sector will have to accelerate MSME lending. To improve the credit to the underserved and unserved, we are happy to associate with Capri Global Capital. We believe this collaboration will provide the nimble footedness of NBFC and quality credit to the right set of the population which will further deepen lending to MSMEs through the last mile connect. We are also confident that, in days to come, co-lending can generate employment opportunities through MSMEs which can translate into the country’s GDP growth,” SBI chairman Dinesh Khara said.
Eicher to upskill drivers with Min of Road Transport and Highway
Eicher Trucks and Buses in partnership with Phoenix Foundation has established the Phoenix-Eicher Institute of Driver Training and Research in Latur, Maharashtra to upskill driver fraternity in the state. Set up under public-private partnership with the Ministry of Road Transport & Highways, this institute aims to enhance the core competencies of the commercial vehicles drives by training them across wide range of vehicles, through a comprehensive and professional Driver Training programs.
No proposal to recognise Bitcoin as a currency: FM Sitharaman
In a reply to a question asked on Bitcoin in the Parliament on Monday, Finance Minister Nirmala Sitharaman said that the government has no proposal to recognise Bitcoin as a currency in the country. She also informed the house that the government does not collect data on Bitcoin transactions. Whether the government has any proposal to recognise Bitcoin as a currency in the country, the Finance Minister said “No, sir”.
India Inc’s hiring intent highest in Q3 at 41%: TeamLease
With the lifting of pandemic restrictions and consequent improvement in the performance of e-commerce and retail sectors, hiring intent touched its zenith in the October-December quarter, rising to 41%, according to a report from TeamLease Services. This is a 3% gain over the July-September quarter.
The findings from the TeamLease Services platform reflect the positive economic sentiment and consumer confidence while also corroborating India Inc’s pent-up talent acquisition requirements. Although the corporate workforce demand has not touched the pre-pandemic mark, the continuous quarter-on-quarter increase in hiring intent, as mapped by TeamLease Services, points to significant business realignment to adjust to digital transformation needs. The workforce number is expected to expand by 430 million approximately by December 2021.
Energy prices, auto supply issues choke India’s recovery track in Oct
India’s economic recovery struck fresh roadblocks in October as rising energy prices and domestic coal shortages weighed on key high-frequency indicators despite the festive push. As many as 11 of 16 such indicators considered in Mint’s macro tracker fell into the red, or below their five-year average trend, last month. This is the reddest the monthly report card has been since June.
In September, 10 indicators had been in the red, a sharp deterioration from the solidifying signs of recovery in August. That was primarily due to the way global semiconductor shortages were choking the auto sector. While those issues remain, new global factors have emerged, hurting India’s trade balance and the rupee’s exchange rate. Other pain points such as weak consumption growth and inflationary pressures stayed as well.
Omicron scare: Markets, policymakers will shoot from the hip without data, Uday Kotak says
Amid concerns over the new Covid variant impacting the Indian stock markets, Kotak Mahindra managing director Uday Kotak on Monday cautioned that people, markets and policymakers will shoot from the hip in crisis management without sufficient data.
The Kotak Mahindra managing director tweeted, “Omicron variant scare today, something else tomorrow. People, markets and policy makers world wide will shoot from hip in crisis management without data. Welcome to the ‘never’ ending world we live in.”
Raymond up 11%
IndusInd Bank Says BFIL CEO, CFO Tendered Resignations On Nov 25
Managing Director and CEO Shalabh Saxena, and the Executive Director and CFO Ashish Damani, of Bharat Financial Inclusion, have resigned from their positions, IndusInd Bank said.
Nikkei hits 1-1/2-month low on Omicron variant fear
Japanese shares tumbled on Monday with the Nikkei average sliding to its lowest level in 1-1/2 months, hit by worries about the damage that the Omicron coronavirus variant could inflict on the economy.
The Nikkei lost 1.63% to 28,283.92, a low last seen on Oct. 13, after sliding 2.5% on Friday.
The broader Topix dropped 1.84% to 1,948.48, falling below its 200-day moving average for the first time since August 2020.
Tatas in talks to buy battery business of UK firm in EV push
Tata Chemicals Ltd is in talks to buy the battery materials business of London-based Johnson Matthey in a deal that can provide an edge to the Tata group in the fast-growing electric vehicle market, two people with direct knowledge of the plan said. The Tata group company is one of the frontrunners in the race to buy this key business from Johnson Matthey, the people said, requesting anonymity. A deal could be struck at a valuation of $500-700 million, they added.
Sensex up 400 points
India’s first cryptocurrency unicorn CoinDCX plans IPO
India’s first cryptocurrency unicorn, CoinDCX, plans to pursue an initial public offering as soon as government regulations allow it, according to its co-founder Neeraj Khandelwal. The share sale would be a key vote of confidence for India’s digital asset industry similar to Coinbase Global Inc.’s U.S. listing earlier this year, Khandelwal said in an interview with Bloomberg Television Monday.
Ambuja Cements, ACC collaborate with IIT Delhi to develop low carbon cement
Ambuja Cements and ACC have partnered with the Indian Institute of Technology Delhi (IIT-D) to develop next-generation, calcined clay cement, a low carbon material to promote sustainable construction.
This academic collaboration will be implemented through a research project funded by Holcim Innovation Centre, Lyon, France. It will comprise an in-depth scientific study into the influence of clinker, calcined clay and limestone on the performance of calcined clay types of cement.
Nifty Metal up 1%
‘Indian economy in better shape than a year ago’
India’s macroeconomic situation is certainly better than what it was a year ago, eminent economist Pinaki Chakraborty said on Monday, while expressing hope that the country will be back on the path of economic growth if there is no major third wave of the covid-19 pandemic. In an interview with PTI, Chakraborty, who is the director of the National Institute of Public Finance and Policy (NIPFP), said that inflation may remain at an elevated level as there was a significant fiscal and monetary expansion in the last 18 months. “The current macroeconomic situation is certainly much better than what it was one year back. We are seeing recovery in most sectors,” he said.
Paytm Payments Bank launches Paytm Transit Card
Paytm Payments Bank Limited on Monday announced the launch of Paytm Transit Card, keeping in mind the vision of one nation, one card. The card will take care of users’ everyday needs — from travel in metro, railways, state-owned bus services, toll & parking charges, to payments at offline merchant stores, online shopping and more. The card also enables withdrawal of money from ATMs
Asian stocks fall further after new virus variant spreads
Asian stock markets fell further Monday after the omicron variant of the coronavirus was found in more countries and governments imposed travel controls.
Tokyo, Shanghai, Hong Kong and Sydney declined, though losses were much smaller than Friday’s sharp decline after reports said the variant first spotted in South Africa appeared to be spreading around the globe.
On Friday, Wall Street’s benchmark S&P 500 index fell 2.3% for its biggest daily loss since February. Investors sold banks, energy and airline stocks and shifted money into bonds and other safe-haven assets.
Reliance Industries shares find favour after Jio tariff hike
Shares of Reliance Industries (RIL) were trading more than 2% higher in Monday’s early deals after the Mukesh Ambani-led group’s telecom subsidiary Jio announced a price hike in its prepaid tariffs from next month, following its rivals Bharti Airtel and Vodafone Idea (VIL). The tariff hikes entail JioPhone Plan, Unlimited Plans, and data add on up to 21% hike. Last week, Airtel and Vodafone Idea had announced up to a 25% hike in their prepaid plans tariffs to improve financials.
Here’s what brokerages say.
Omicron won’t affect smartphone business in India but exports worry
The breakout of a new Covid-19 strain, Omicron, will not have much impact on mobile manufacturing and its sales. However, the exports out of India to the African countries could see a negative impact due to Omicron as the first variant was reported from there. The Indian mobile market won’t see much change, barring public movement, because this post-Diwali period is considered to remain low, always. Having said that, we need to stay vigilant to tackle any unwarranted situations.
ONGC to NMDC: Here are 5 Stocks Value Investors Should Closely Track
Value investing consists of investing in companies that are often ignored or unappreciated at attractive prices. These stocks usually trade at low multiples of price to book value, have steady growth and return ratios, and offer attractive dividend yield.
FMCG investors in a fix on lack of clarity on rural growth outlook
At the time when urban India was grappling with the first wave of the coronavirus pandemic, rural demand had come to the rescue of makers of fast-moving consumer goods (FMCG). But after the second wave, things have flipped. There are concerns that the once buoyant rural demand is fading. With FMCG companies continuing to battle severe input cost inflation, muted rural demand adds to investors’ discomfort. Further, the management commentaries of large FMCG companies do not provide much clarity on what lies ahead on this front.
Vodafone Idea up 8%
U.S. stock futures, oil rally as mood lightens
U.S. stock futures led a market rebound on Monday as investors prepared to wait a few weeks to see if the Omicron coronavirus variant would really derail economic recoveries and the tightening plans of some central banks.
Oil prices bounced more than $3 a barrel to recoup a chunk of Friday’s shellacking, while safe-haven bonds and the yen lost ground as markets latched onto hopes the new variant of concern would prove to be “mild”.
Go Fashion IPO: Latest GMP ahead of shares listing
The three-day initial public offering (IPO) of Go Fashion (India) Limited, which owns women’s wear brand Go Colors, received a whopping 135.46 times subscription on its last day of subscription that concluded on November 22. The ₹1,013.6-crore IPO received bids for 1,09,44,34,026 shares against 80,79,491 shares on offer.
Markets opening view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
As expected the markets opened weak post Friday’s close where the index failed to close above 17200. The short term is weak and the medium term is now shaping up to become weak too. If we trade below 17000 on a closing basis, the Nifty can slip further to 16500. On the upside, the resistance is at 17500 and unless we do not get past that on a closing basis, any up move can be strategically used to go short on the markets.
Paytm share prices fall sharply post Q2 results, then recover
Shares of One 97 Communications Ltd, the parent of Paytm, fell as much as 4.6% today in early trade after the fintech company’s net loss for its second quarter widened due to a rise in expenses. That comes after shares ended last week 17% below the company’s IPO price of ₹2,150. However, at 9:50 am, Paytm shares pared losses to trade flat at ₹1,780 in line with a recovery in broader markets. Stock markets benchmark Sensex fell sharply in early trade but later pared losses to trade flat.
India’s Reliance mulls bid for UK telco BT Group
Indian oil-to-telecoms conglomerate Reliance Industries Ltd is considering an offer for British telecom company BT Group Plc, the Economic Times reported on Monday, citing sources familiar with the matter. Billionaire Mukesh Ambani’s Reliance might make an unsolicited offer to buy into BT Group or try to get a controlling share in it, the report said, adding that the firm may also propose to partner with BT’s fibre optic arm Openreach and fund its expansion plans.
Rollover Report for November-December 2021: Angel One
Since the June series, we witnessed a fabulous run in our market to clock a fresh record high in every series. This winning streak finally ended in November series as we saw some consolidation in the initial two weeks and then after touching the 18200 mark, the selling got aggravated to correct 1000 points in merely six trading sessions. Eventually, we concluded the Festive series slightly above 17400.
Now let’s take a quick glance at the F&O activities. During the series, we saw a good amount of short formation especially in BankNifty which was a major dragger. Rollover for Nifty and BankNifty stood at 82.56% and 83.76% respectively, which is certainly above the three-month average. This clearly indicates that bears are tightening their grip on the market and are expecting a further correction in the coming series. Surprisingly, stronger hands halted selling in index futures last week and opted to add some longs in recent correction and have also rolled over these longs in the upcoming series. This has resulted in their ‘Long Short Ratio’ surging from 54% to 70% now. However, they remained net sellers in equities for November month. Considering the relentless selling by FIIs and short rollovers, we would maintain our recent cautious stance on market.
Nifty broad market indices at open
Most of the broad market indices are trading in the red.
Jio announces up to 21% hike in tariffs from 1 December
Reliance Jio Infocomm Ltd on Sunday said it will raise its prepaid tariffs by 21%, matching hikes by rivals Bharti Airtel Ltd and Vodafone Idea Ltd, and formally ending the bruising price war that started with the entry of the Mukesh Ambani company in 2016. Jio’s new plans will take effect on 1 December. The move comes days after rivals Airtel and Vodafone Idea raised tariffs by 20-25%, citing the need for higher revenues to make their operations sustainable.
Top gainers/losers in opening deals
24 of 30 Sensex stocks in red
Adani Group says ‘disappointed’ by MSCI’s decision to drop Adani Ports from some of its climate change indices
Adani Group issued a statement with respect to MSCI’s action on climate change indices as it dropped Adani Ports from some of its climate change indices. Adani Ports in an exchange filing on Sunday said that the MSCI’s decision on climate indices is disappointing.
Markets in pre-open
At market pre-opening, Sensex was down nearly 500 points.
Nifty at pre-open
At market pre-opening, Nifty was down nearly 400 points.
Asian markets extended losses but oil bounces after Omicron rout
Asian markets fell again Monday but oil rebounded strongly as investors try to assess the threat of the new Omicron Covid strain on the global economic recovery.
Equities around the world went into freefall Friday on news of the heavily mutated variant, which some fear could evade vaccines, as it forced several governments to throw up flight bans from southern Africa where it was discovered and introduced fresh containment measures.
Indiabulls Housing Finance stock under NSE’s F&O ban list for today
Only one stock has been put under the ban for trade on Monday, November 29, 2021 under the futures and options segment by the National Stock Exchange (NSE). The security has been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE. Indiabulls Housing Finance is the only stock under NSE’s F&O ban stock list for today. The derivative contracts in the mentioned securities have crossed 95% of the market-wide position limit and are therefore have been currently put in the ban period by the stock exchange, said NSE.
Petrol, diesel prices today: Fuel prices remain unchanged
Fuel rates continued to remain steady as petrol and diesel prices remained unchanged on Monday across various cities in the country including the national capital Delhi, metro cities Mumbai, Kolkata and Chennai.
Check latest fuel rates here.
Q2 results: Many small firms yet to beat pandemic blues
As many as 38% of BSE-listed companies, mostly smaller businesses, struggled to match their pre-covid sales in the three months to September even as results from other companies made for a generally positive third quarter earnings season.
On the face of it, the latest corporate earnings appear to be just what the doctor ordered, with combined net profits of listed companies rising to a record ₹2.31 trillion. Indian companies posted a strong net profit growth of 62% year-on-year (y-o-y), with an equally stunning 29% sales growth, as the economy recovered quickly, showed a Mint analysis of 3,137 BSE-listed companies.
Promoter stake up in Adani Green even as Mauritius funds sell
A Mauritius-based promoter entity has acquired about 5% of equity shares in recent months in Adani Green Energy, indicating a doubling down on the renewables bet by group chairman Gautam Adani. The purchase of shares by Infinite Trade and Investments Ltd has taken the promoter shareholding in the company from 56.29% as of March to 60.14% in November. Adani Green Energy currently has a market capitalization of ₹2.14 trillion.
Paytm in focus again as analysts query CEO on path to profits
After a turbulent debut for the company behind India’s largest initial public offering, Paytm’s top executives spent 90 minutes on a call with investors and analysts on Saturday as they dissected its business model and raised questions on monetization.
Whether officials have done enough to ease doubts on revenue streams and profitability prospects remain to be seen when markets reopen. One97 Communications, the parent of the digital payments giant, ended last week 17% below its offer price of 2,150 rupees ($28.68), after falling to as low as 1,271 rupees at one point.
Stocks to Watch: Paytm, Reliance, Tata Chemicals, Adani Green
Here is the list of stocks that could be in focus in today’s trade.
Gold drops as easing virus variant concerns curb haven demand
Gold fell after some concerns over the omicron coronavirus strain eased, boosting risk appetite even as the World Health Organization urged caution.
Two South African health experts, including the doctor who first sounded the alarm about omicron, suggested the variant is presenting with mild symptoms so far. But the WHO said Sunday it would take time to assess the severity of the new strain and the initial reported infections were among university students, with younger patients tending to have milder symptoms.
Spot gold dropped as much as 1.3% before trading 0.4% lower at $1,795.26 an ounce by 7:59 a.m. in Singapore. The Bloomberg Dollar Spot Index steadied after a 0.3% decline on Friday, while S&P 500 and Nasdaq 100 contracts were in the green and oil rebounded.
SGX Nifty gains points in early deals
SGX Nifty futures traded at17,089.5 in early deals, down 46 points or 0.3%, indicating a positive start for Indian benchmarks in Friday’s trade.
Asian stocks fall
Asian stocks fell while U.S. equity futures, crude oil and Treasury yields climbed as traders tried to calibrate the possible impact of the omicron coronavirus strain on global economic reopening.
Equities in Japan, South Korea and Australia retreated. S&P 500 and Nasdaq 100 contracts were in the green and oil jumped back above $70 a barrel. The 10-year U.S. Treasury yield advanced above 1.50%
The moves indicated a measure of calm after Friday’s dramatic plunge in risk assets. Two South African health experts — including the doctor who first sounded the alarm about omicron — suggested the variant is presenting with mild symptoms so far. The World Health Organization urged caution, saying it will take time to assess the strain.
The yen weakened and a dollar gauge was steady. The currency of South Africa, where the variant was identified, rallied against the greenback.
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