Indian stock markets were trading higher amid volatility and a souring global mood on Thursday. Banks, capital goods, and FMCG were initially under pressure while there was buying in auto, IT and pharma. Stocks like Reliance and Latent View Analytics were in focus during the day.
Indian equities surged in a market rally on Thursday. The Sensex jumped 454.19 points to close at 58,795.09. Meanwhile, Nifty ended the session 121.20 points higher at 17,536.25. Sensex touched a high of 58,901.58 during the while Nifty hit 17,564.35. Broader markets also advanced.
On Sensex, Reliance, ITC, Infosys, Tech Mahindra and Kotak Mahindra Bank led the pack of 14 gainers while Maruti, ICICI Bank and IndusInd Bank lagged the most among 16 losers on the index. On Nifty, Reliance ITC, and Infosys led gainers, while Hindustan Unilever and IOC lagged. Among sectors, Bank and Auto were under pressure. However, Metal, FMCG, IT, Realty, and other stocks surged.
Reliance, Aramco call off $15 bln deal amid valuation differences: Report
Reliance Industries and Saudi Aramco have called off a deal for the state oil giant to buy a stake in the oil-to-chemicals business of the Indian conglomerate due to valuation concerns, sources with knowledge of the matter said.
Talks broke down over how much Reliance’s oil-to-chemicals (O2C) business should be valued as the world seeks to move away from fossil fuels and reduce emissions, they said.
17 of 30 Sensex stocks in red
Market view: Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers
Indian markets opened on a mixed note following mixed Asian market cues as investors digest Bank of Korea raising rates along with the resurgence of covid cases in Europe. During the afternoon session market recovered and gained momentum to enter into green terrain. Sentiments were upbeat as Moody’s expects India’s economic growth to rebound strongly, pegging GDP growth of 9.3% and 7.9% in the fiscal year 2022 (ending on 31 March 2022) and fiscal 2023, respectively. Additional support also came in as Foreign Secretary said that India has set an ambitious target of $400 billion of exports for the year 2021-22.
Gold futures gain on spot demand
Gold prices on Thursday rose by ₹137 to ₹47,575 per 10 gram in futures trade as speculators created fresh positions amid firming spot demand. On the Multi Commodity Exchange, gold contracts for December delivery traded higher by ₹137, or 0.29 per cent, to ₹47,575 per 10 gram in a business turnover of 3,437 lots.
Fresh positions built up by participants led to the rise in gold prices, analysts said. However, globally, gold prices traded 0.58 per cent lower at USD 1,797.20 per ounce in New York.
Nithin Kamath on Zerodha using AI/ML technologies
While AI and ML-powered technologies are said to be dominating every sector today, in a surprise reply Nithin Kamath pointed out that for Zerodha there is ‘no use-case yet’. Here’s what he said.
PM Modi inaugurates Noida International Airport, will bring in investments worth ₹60,000 cr
Prime minister Narendra Modi laid the foundation stone for the Noida International Airport on Thursday in Gautam Buddh Nagar. The airport is spread over more than 1300 hectares of land and the completed first phase of the airport will have a capacity to serve around 1.2 crore passengers a year and work on it is scheduled to be completed by 2024. India’s first net-zero emissions airport will also have the provision of multi-modal seamless connectivity. This is also the first time in India, an airport has been conceptualised with an integrated multi-modal cargo hub.
Stronger US Dollar pressured dollar-denominated Commodities: Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd
On Wednesday, Spot Gold prices ended marginally lower by 0.07 percent to close at $1788.5 per ounce. Gold prices were pressured as strong US economic figures kept the Dollar elevated.
Fall in the number of Americans applying for unemployment benefits and reports suggesting a GDP growth of 2.1 percent in US in the third quarter further supported the US Dollar.
The Dollar and US treasury yield gained strength earlier in the week on expectations of a sooner than expected rate hike by US Central bank after U.S. President Joe Biden nominated Federal Reserve Chair Jerome Powell for a second four-year term. A stronger Dollar makes the Dollar priced commodities more expensive for other currency holders.
However, the recent spike in the covid19 cases in Europe and worries of slowdown in China’s economy limited the fall in the safe haven asset, Gold.
Easing US Dollar might levy some support for Gold in today’s session; however, bets over hike in interest rates might continue to keep Gold under pressure.
On Wednesday, WTI Crude ended marginally lower by 0.14 percent to close at $78.4 per barrel. Oil prices remained under pressure as the release of Crude reserves by US and increasing US Crude stocks amid the recent spike in COVID-19 cases in Europe undermined market sentiments.
As per reports from the U.S. Energy Information Administration data, US Crude inventories ended higher by 1 million barrels in the week ending on 19th November’21 against markets expectation of a 1.7 million barrels drop.
The US vowed to release 50 million barrels from the strategic reserve in an attempt to ease Oil prices after the OPEC+ refused to boost output.
Markets wait for the response of OPEC to the release of Crude reserves by major Oil consuming which might keep Oil prices under pressure.
On Wednesday, Industrial metals on the LME and MCX after China vowed to levy support to their property sector which underpinned market sentiments.
Industrial metals remained under pressure earlier in the week as a stronger US Dollar reflecting bets over a sooner than expected rate hike clouded the outlook for the entire pack.
Halt in operations at Glencore’s zinc sulphide operations in Italy and the Tara Mine in Ireland (one of Europe’s largest Zinc reserves) amid disrupted supply from China might continue to support Zinc prices.
Indonesia continued to restrict the exports of Nickel ore despite of the lawsuit filed by European Union at the WTO. Indonesia banned Nickel ore exports since January 2020 in order to support the domestic manufacturers and processing units.
India-US digital services tax deal: Potential trade conflict averted
With India and the US reaching a deal on digital services tax, a potential trade conflict between the nations has been averted as India gets to tax e-commerce supplies by non-resident firms till the end of March 2024 or till a proposed global tax deal is executed, whichever is earlier.
Bank Nifty Weekly Strategy: Axis Securities
Bank Nifty has seen a decrease in Open Interest of -39.90% with a decrease in the price of -1.68% indicating Long Unwinding. The sizable unwinding in the OI is due to November Expiry scheduled today.
Nifty has seen a decrease in Open Interest of -51.67% with a decrease in price of -2.16% indicating Long Unwinding. The sizable unwinding in the OI is due to November Expiry scheduled today.
Option data indicates a probable trading range of Bank Nifty for the day between 38,000 to 37,000 & that for NIfty at 17,200 to 17,500.
BANK NIFTY Strategy: PUT Spread
View: Moderately Bearish.
Rationale: Traders could initiate this spread strategy to make modest returns with limited risk and reward. The spread suggested consists of buying one lot of 37,400 strike PUT Option and simultaneously selling one lot of 36,900 strike PUT Option.
*Strategy for Week 2nd December Expiry
Latent View Analytics up 17%
Nifty technicals: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
Tuesday’s smart recovery was followed by a decent opening in line with favourable global cues. After the initial tentativeness, the market stabilized and went into a consolidation mode. We slowly and very gradually moved towards the 17600 mark around the mid-session. However, all of a sudden market started to feel some heat as we witnessed strong selling pressure across the board to pull the Nifty back to 17400 in a flash, in fact for a moment we even slid towards 17350.
Yesterday, Nifty shed merely half a per cent from the previous close but it certainly does not portray the right picture of yesterday’s intraday activity. The pullback in the last one and half days seems to have provided an excellent opportunity for the bears to re-enter the market. They grabbed it with both hands to send Nifty back to 17400 at the close. This is exactly what we had alluded to in our previous commentary. We are still not out of the woods and hence one should not fall prey to such in between recoveries. Yesterday’s high of 17600 now becomes a strong barrier for bulls and in fact with a broader view, till the time we do not surpass 17900 – 18000, one should continue with a sell on rise strategy. Today being the monthly expiry, the volatility is expected to be on the higher side and although we continue to remain bearish on the market, it would be difficult to take a call whether we would break the sacrosanct support of 17200 today itself. Yes, sooner or later it is likely to be breached to see Nifty retesting the 17000 mark. Before this, 17300 is to be considered as an intraday support.
The market seems to have reversed precisely from the important resistance levels, be it Nifty and Bank Nifty or even the midcap index for that matter. Traders are advised not to get carried away by such recoveries and should avoid taking aggressive longs for a while.
Reliance Industries shares surge 6% today
Shares of India’s top valued firm Reliance Industries Ltd (RIL) were trading nearly 6% higher at ₹2,491 apiece on the BSE in Thursday’s trading session as the heavyweight supported markets as the top gainer and helped in the rebound of indices in afternoon deals. What’s driving the rally?
Covid-19: ITC starts clinical trials of nasal spray
Diversified entity ITC on Thursday confirmed that it is developing a nasal spray for COVID-19 prevention for which it has initiated clinical trials. Developed by scientists at ITC Life Sc iences and Technology Centre (LSTC), Bengaluru, the company plans to market the nasal spray under the Savlon brand once it gets all the requisite regulatory approvals, according to sources.
GSK Pharma, Torrent, Laurus Lab lead Nifty Pharma surge
AMC seeks overseas investment limit hike
Motilal Oswal Asset Management Company has requested Sebi to increase the USD 1 billion limit (around ₹7,400) crore given to fund houses for international investment, two persons with knowledge of the matter independently confirmed to Mint. Motilal Oswal Mutual Fund has an Exchange Traded Fund (ETF) and a Fund of Funds (FoF) tracking the NASDAQ Index and an index fund tracking the S&P 500 index. The Motilal Oswal NASDAQ ETF has assets under management (AUM) of ₹5,704 crore and the Motilal Oswal S&P 500 Index Fund has assets of ₹2,398 crores (as of October 2021). Launched in March 2011, the NASDAQ ETF has delivered a 26.2% CAGR over the past 10 years, sharply beating the domestic Indian equity market. The S&P BSE 500, a proxy for the Indian stock market, has given a CAGR of 16.5% over the past 10 years. Motilal Oswal S&P 500 Index Fund launched in April 2020 has delivered 33.7% since inception.
Broad market indices
Tamil Nadu signs deals worth ₹35,200 crore with businesses at investor meet
Tamil Nadu government has signed investment agreements worth ₹35,200 crore with 59 businesses including Larsen & Toubro Ltd., Hindustan Unilever Ltd., Adani Enterprises and TVS Motor Co. at an investor meet on Tuesday, said an official statement from the state government.
New survey says 54% Indians are against legalizing cryptocurrencies
More than half of the people surveyed in India are against legalizing cryptocurrencies, according to an opinion poll published on Wednesday, just as the government proposed a law to regulate their use and to create an official digital coin.
The survey showed 54% don’t want the government to legalize cryptocurrencies but instead to tax them like a digital asset held in a foreign country, pollster LocalCircles said. These findings were based on a survey of 56,000 people in the last 15 days.
Airtel conducts 5G trials in the 700 MHz band in Kolkata
Bharti Airtel has completed its first 5G trial in the 700 MHz band on the outskirts of Kolkata with technical support from Nokia, the telecom operator said in a statement. The telco claims it was the first 5G trial in Eastern India.
The telco said it achieved high-speed wireless broadband network coverage of 40 Km between two 3GPP standard 5G sites. Nokia provided its AirScale radios and standalone (SA) core to the telco to conduct the tests.
12 of 30 Sensex stocks in green
Asian stocks steady, futures up amid China growth effort
Asian stocks were steady Thursday and U.S. equity futures rose as traders weighed China’s efforts to cushion its economy as well as robust U.S. expansion that may hasten the withdrawal of monetary stimulus.
MSCI Inc.’s Asia-Pacific share index snapped a three-day drop. Beijing urged local governments to boost investment to counter a growth slowdown, while the Chinese city of Chengdu sought to ease a cash crunch at property developers. It became the first major local administration to address the liquidity squeeze in the real estate industry, a key component of the economy.
U.S. and European futures climbed after Wall Street gained overnight. U.S. data showed a solid economic recovery, including resilient consumer spending despite persistent price pressures.
Reliance brings up Sensex
Bank of America foresees $100 billion wave of IPOs in EV space
A worldwide push toward electrification is causing a three-year wave of initial public offerings in the electric vehicle space that could raise about $100 billion until the end of 2023, according to Bank of America Corp.
Growing investments in the sector, spanning from batteries to charging cars, will see companies spin-off units as well as go public, said Patrick Steinemann, co-head of Global Mobility Group Investment Banking at Bank of America.
Tokyo shares close higher
Tokyo shares closed higher Thursday after solid US indicators boosted Wall Street shares with a rising dollar also encouraging investors.
The Nikkei 225 index added 0.67 percent, or 196.62 points, to end at 29,499.28, while the broader Topix index advanced 0.33 percent, or 6.57 points, to 2,025.69.
Paytm up 2%
Harsh Goenka tweets stock market tips for netizens
The chairman of the RPG Group Harsh Goenka likes to share his thoughts and wisdom on Twitter interacting with netizens who whole-heartedly react and interact with his tweets. He tweeted “Kabir on stock market..” which is written in a unique doha style.
Indian bonds closer to being included in global indexes as govt plans tax changes
India plans some tax exemptions in its budget due February, possibly the final step for the nation’s sovereign bonds to be included in global indexes, according to people familiar with the matter. Finance Minister Nirmala Sitharaman will propose to exempt Euroclear settlements from tax, the people said, asking not to be identified as the plans are private. If lawmakers approve the budget on schedule, Indian debt could be eligible for index inclusion by the end of March, they added.
Latent View shares rally 40% in 3 days since bumper listing
Shares of Latent View Analytics continued their stellar rally after bumper listing earlier this week as the scrip rose 18% to ₹695 apiece in Thursday’s early deals, giving more than 40% return in just three trading sessions. The stock had made a strong market debut and settled with a premium of 148% against its IPO issue price of ₹197. What should investors do?
Sensex up over 250 points
India’s GDP growth to rebound strongly, FY22 growth seen at 9.3%: Moody’s
India’s rising vaccination rate, stabilizing consumer confidence, low interest rates and higher public spending underpin positive credit fundamentals for nonfinancial companies, Moody’s Investors Service said in a new report.
“India’s steady progress on inoculation against the coronavirus will support a sustained recovery in economic activity. Consumer demand, spending and manufacturing activity are recovering following the easing of pandemic restrictions. These trends, including high commodity prices, will propel significant growth in rated companies’ EBITDA over the next 12-18 months,” says Sweta Patodia, a Moody’s Analyst.
ICICI Securities bullish on this multibagger stock, raises target price
Given its multi-distribution channel approach and robust supply chain infrastructure, TCNS clothing has emerged as the market leader in women’s ethnic space through its three popular home grown brands. TCNS Clothing share price has appreciated around 2.2 times, from ₹400 in April last year to hovering around ₹885 apiece in November 2021.
Brokerage and research firm ICICI Securities has a Buy recommendation on the multibagger stock with a target price (TP) of ₹1,120 per share (raised from earlier TP of ₹860) with a time frame of around twelve months.
23 of 30 Sensex stocks in red
Paytm shares: BlackRock, Canada Pension bought more after rout
Several of the biggest investors in Paytm’s record-breaking initial public offering added to their stakes in the Indian fintech giant after shares plunged by as much as 41%, according to people familiar with the matter.
BlackRock Inc. and Canada Pension Plan Investment Board were among so-called anchor investors in the IPO that bought more Paytm shares on Tuesday and Wednesday, the people said, asking not to be identified discussing private information.
BFSI view: Digital mode constitutes >10% of total lending for NBFCs and >2% for SCBs – ICICI Securities
Total global alternative credit (i.e. credit through fintechs and bigtechs) in 2019 stood at US$795bn, of which share of fintechs stood at US$223bn and bigtechs US$572bn. In India, lending through the digital mode is still in a nascent stage at Rs1.1trn for banks vs Rs53trn via physical mode. For NBFCs, the share of digital lending stood at Rs0.23trn vs Rs1.9trn via physical mode. The RBI’s working group on digital lending presents interesting insights on player-wise, productwise and tenure-wise lending via digital mode. While banks have been increasingly adopting innovative approaches in digital processes, NBFCs have been at the forefront in digital lendin
Voda Idea pre-paid plans get costlier today
Vodafone Idea revised pre-paid tariff plans start today. With the announcement of Airtel first, Voda Idea also increased its tariff plans to generate more revenue and help the already ailing telecom operator. With a nearly 25 per cent increase in pre-paid tariff plans, the subscribers have to shell out more who is already battling post covid economic crunch, job losses and salary cuts. Along with Vodafone Idea, Airtel had prior announced the revision which will be applicable tomorrow, Nov 26.
Rupee falls 15 paise to 74.55 against US dollar in early trade
Siemens stock down 5% as operating margins hit hard by inflation
High raw material prices and logistics expenses weighed on the earnings performance of Siemens Ltd in the September quarter. Revenue grew 14% year-on-year (y-o-y) to ₹4,000 crore, but on a two-year CAGR basis, revenue was flat, analysts said. CAGR is short for compounded annual growth rate.
Ebitda fell 5% y-o-y and Ebitda margin declined 200 basis points y-o-y to 10.7%. Ebidta is short for earnings before interest tax depreciation and amortisation. One basis point is one-hundredth of a percentage point.
Indian GDP to grow 7.8% in the second quarter: HDFC Bank economists
Official data print on the GDP will show a 7.8 per cent expansion on a year-on-year basis for the September 2021 quarter, according to a report. Real GDP will grow 9.4 per cent in FY22 and decelerate to 7.5 per cent for FY23 as the base effects result in the higher growth in the ongoing fiscal wear-off, according to the report by economists at HDFC Bank released on Wednesday.
Star Health IPO: GMP halves ahead of subscription opening next week
Rakesh Jhunjhunwala-backed Star Health and Allied Insurance’s initial public offering (IPO) will open for subscription next week on Tuesday, November 30 and the three-day share sale will conclude on December 2. The price band for its public offering has been fixed at ₹870-900 per share. The company is aiming for a valuation of about $7 billion in its public offering, as per a Reuters report.
The IPO comprises a fresh issue of equity shares worth ₹2,000 crore and an offer-for-sale of up to 58,324,225 equity shares by promoters and existing shareholders. The public offer includes a reservation of shares worth ₹100 crore for employees. At the upper end of the price band, the initial share-sale is expected to fetch ₹7,249 crore.
Top stocks in the first hour
Reliance Industries to restructure and repurpose gasification assets
Mukesh Ambani-led Reliance Industries (RIL) on Wednesday informed in an exchange filing that the company will restructure and repurpose gasification assets as the board of RIL has decided to implement a Scheme of Arrangement to transfer Gasification Undertaking into a Wholly-Owned Subsidiary. The board has accordingly approved a Scheme to transfer the Gasification Undertaking as a going concern on a slump sale basis for a lump sum consideration equal to the carrying value as on the Appointed Date.
Indian bonds closer to be included in global indexes as govt plans tax changes
India plans some tax exemptions in its budget due February, possibly the final step for the nation’s sovereign bonds to be included in global indexes, according to people familiar with the matter.
Finance Minister Nirmala Sitharaman will propose to exempt Euroclear settlements from tax, the people said, asking not to be identified as the plans are private. If lawmakers approve the budget on schedule, Indian debt could be eligible for index inclusion by the end of March, they added.
Nifty stays under 17,500
Markets at open
Markets in pre-open
Nifty in pre-open
Amazon seeks to pause antitrust review of 2019 deal with Future
Amazon.com Inc has asked India’s Supreme Court to pause an expedited review of allegations that the U.S. firm concealed information while seeking antitrust clearance for a 2019 deal with India’s Future Group, legal papers seen by Reuters showed. The Competition Commission of India (CCI) in June accused Amazon of concealing facts and making false submissions when it sought approval for the $200 million investment into a Future unit in 2019, a deal that is now at the heart of protracted legal disputes between the two sides. Amazon told Reuters at the time that it was confident of addressing the watchdog’s concerns.
Go Fashion IPO share allotment today. A guide on how to check application status
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 susbscription on Monday. The ₹1,013.6-crore IPO received bids for 1,09,44,34,026 shares against 80,79,491 shares on offer.
The finalization of basis of share allotment of Go Fashion IPO is expected to take place today, Thursday, November 25, 2021 and if allotted, then the credit of shares to demat account of bidders will be done on November 29, 2021.
RIL subsidiary to own team in UAE T20 League
Reliance Industries, through its subsidiary Reliance Strategic Business Ventures Ltd (RSBVL) has announced that it is set to acquire the rights to own and operate a new franchise cricket team in the Emirates Cricket Board’s upcoming UAE T20 League.
Most Asian markets drop as data points to faster Fed taper
Equity markets in Asia mostly fell Thursday as a batch of strong economic data spurred expectations that the Federal Reserve will withdraw its vast financial support and lift interest rates earlier than thought.
A drop in jobless claims to a five-decade low, along with a surge in consumer income and spending, reinforced optimism that the world’s biggest economy is well on the recovery track but added to pressure on the central bank to prevent it from overheating.
The readings came as minutes from the Fed’s November policy meeting showed officials were moving towards tapering their vast bond-buying programme — known as quantitative easing — at a faster pace as they try to tame rocketing prices.
Indiabulls Housing Finance among stocks under F&O ban on NSE today
A total of two stocks/securities have been put under the ban for trade on Thursday, November 25, 2021 under the futures and options segment by the National Stock Exchange (NSE). These securities have 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.
The two stocks under NSE’s F&O ban stock list for today are Indiabulls Housing Finance and Escorts. Meanwhile, Vodafone Idea, that was part of the banned list in the previous session, is out from the list for Thursday.
SGX Nifty signals a flat start
SGX Nifty futures traded at 17,444.50 in early deals, down 3.5 points or 0.02%, indicating a flat start for Indian benchmarks in Thursday’s trade.
Fuel rates remain unchanged
As of Thursday, the cost of one litre of petrol in Delhi stands at ₹103.97 and that of diesel at ₹86.67 per litre. Meanwhile, In the country’s financial capital, the petrol and diesel prices have remained static to ₹109.98/litre and ₹94.14 per litre, respectively. Check latest fuel rates here.
Oil steady after OPEC says reserves release to bloat surplus
Oil was steady in Asia after OPEC said a planned coordinated release of reserves may swell a crude surplus expected early next year.
Futures in New York traded near $78 a barrel after closing little changed on Wednesday. The projection was made by the group’s advisory body — the Economic Commission Board — ahead of an OPEC meeting next week. Some of the cartel’s delegates warned this week that releasing strategic reserves may lead to the alliance holding back crude supply in January.
The International Energy Agency, meanwhile, accused Saudi Arabia, Russia and other major energy producers of creating “artificial tightness” in global oil and gas markets, urging OPEC to accelerate the return of supplies.
Asian stocks steady; dollar gauge holds advance
Asian stocks were mixed Thursday and the dollar held near a 16-month high as traders weighed Federal Reserve minutes that flagged the risk of a faster reduction in stimulus to fight elevated inflation.
Equities rose in Japan and Australia but fell in South Korea, where the central bank raised interest rates. U.S. futures climbed after the S&P 500 and tech-heavy Nasdaq 100 edged up on below-average trading volumes ahead of the U.S. Thanksgiving holiday.
The latest U.S. data showed a robust economic recovery, including resilient consumer spending, as well as persisting price pressures. Fed officials at their last meeting were open to removing policy support at a faster pace to curb inflation.
Expectations of an earlier Fed interest-rate liftoff saw shorter maturity Treasury yields advance, while longer-maturity rates retreated, flattening the bond curve. There’s no cash Treasuries trading due to the U.S. holiday.
S&P 500 futures rose 0.2% as of 10:03 a.m. in Tokyo. The S&P 500 rose 0.2%
Nasdaq 100 futures were little changed. The Nasdaq 100 rose 0.4%
Japan’s Topix index rose 0.6%
Australia’s S&P/ASX 200 Index added 0.1%
South Korea’s Kospi index declined 0.3%
Hang Seng Index futures fell 0.4% earlier
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