Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities:
After 2 days of a relief rally, selling resumed as mixed cues in other Asian markets weighed on sentiment that prompted investors to trim their holdings in auto, FMCG and IT stocks. While Nifty corrected sharply, it finally took support near 16750. In an extremely volatile week, the Nifty succeeded to close above the 100 day SMA which is broadly positive. However, on the dismissal of 17140, the market could again enter in the short term bearish zone and below the same, the index could gradually fall to 16880/16780 levels.
Based on the daily chart the market is forming the series of a lower top lower bottom. In case the market breaks 16780 then it would have major implications and in that case the possibility of the index hitting 16500 would turn bright. Meanwhile, on daily charts, the Bank Nifty maintained a lower top formation which is largely negative. Now, 35500 or 200 day SMA would be the key support level. And the texture of the chart suggests a strong possibility of axquick pullback rally if it succeeds to trade above 35500.
Ajit Mishra, VP - Research, Religare Broking:
Markets failed to extend the rebound and lost nearly a percent citing caution due to the COVID variant. Initially, the benchmark opened with an uptick tracking supportive global cues however selling pressure at higher levels dragged the indices lower as the day progressed. Nifty finally settled around the day’s low to close at 17,196.70 levels.
The broader markets outperformed wherein midcap ended flat and smallcap indices ended higher by 0.4%. Amongst the sectors, all the other indices, except capital goods, ended in the red wherein banking, oil & gas and auto were the top losers.
We’re seeing a roller coaster ride in markets across the globe due to the news flow around the new COVID variant and we don’t expect any relief soon. Participants have no option but to align their position accordingly and prefer hedged positions. Investors should not worry much about these fluctuations and use the further dip to add quality stocks in a staggered manner.
Emkay Global Financial Services:
This week omicron woes kept the USDINR spot afloat, and now the focus is on tonight’s US non-farm payrolls report. It is a big data to digest before the Fed policy as it will help gauge the state of US employment and will carry some implication on this policy outcome.
A big NFP figure will push USDINR higher along with the safe-haven demand if Omicron concerns rise. But next week, we have RBI policy and a likely tightening by raising the reverse repo rate may limit any rise in USDINR spot. So we expect USDINR spot to continue oscillating in between 74.70-75.50. As long as it trades above 74.70, it will continue the uptrend.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index closed a week at 17197 with gains of more than one percent and formed a doji sort of candle pattern on weekly chart after two bearish candles which hint indecision in the markets.
Good demand zone for Nifty is already formed near 17100-17000 zone & holding above said levels one can expect index to march towards 17500-17600 zone in near term but if failed to hold then more profit booking can push index to much lower levels, immediate hurdle is coming near 17300-17440 zone.
Palak Kothari, Research Associate at Choice Broking:
On the last day of the week, after a gap-up opening, the index didn’t manage to sustain at a higher level and showed profit booking and closed the session at 17196.70 levels with a loss of 204.95 points.
On the technical front, the index has formed an open bearish Marabozu candle which points out a weakness for the next trading sessions. Moreover, the index has taken support from 100 DMA which points out sustained above the show upside momentum. Furthermore, the index has taken support from the rising trend line as well as the index has been trading with higher highs & lower lows from the last 3 trading sessions which points out bullish movement intact.
At present, the index has support at 17000 levels while resistance comes at 17500 levels. On the other hand, Bank Nifty has support at 35300 levels while resistance at 37000 levels.
Vinod Nair, Head of Research at Geojit Financial Services:
Following a positive opening, benchmark indices gave up all gains led by losses in heavyweights in anticipation of the RBI meet next week. Meanwhile, investors were also cautious after India reported Omicron cases.
However, global equities traded with slight gains recovering from yesterday’s broad based sell-off led by fears on new covid variant and Fed chair’s comment on the bond-buying program.
RBI’s monetary policy meeting will be a key market driver as investors await MPC’s policy decision which is broadly expected to hold an accommodative stance considering the uncertainty surrounding the new variant.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The Nifty failed to keep above the 17400-17500 zone which is a bearish signal. We are resisting at higher levels and therefore the upside is definitely capped in that region.
Unless we do not get past the patch of 17400-17500 on a closing basis, we won't really see a meaningful upside rally. If the markets were to break 17100 next week it would be a matter of concern as there is every possibility we re-enter the current bear trend.
Market Close
: Benchmark indices broke the two-day winning streak and ended lower with Sensex closing below 58,000 mark.
At Close, the Sensex was down 764.83 points or 1.31% at 57,696.46, and the Nifty was down 205 points or 1.18% at 17,196.70. About 1722 shares have advanced, 1453 shares declined, and 137 shares are unchanged.
Power Grid Corporation, Reliance Industries, Tech Mahindra, Asian Paints and Kotak Mahindra Bank were among the major Nifty losers. The gainers included UPL, BPCL, ONGC, IOC and L&T.
Except capital goods, all other sectoral indices ended in the red. BSE midcap and smallcap indices ended on flat note.
Buzzing
Maruti Suzuki's share price was down over a percent in the afternoon trade on December 3 after CLSA downgraded the stock to “sell” from “underperform” and cut the target to Rs 6,420 from Rs 6,550 a share.
The brokerage firm said that if the company loses share in the SUV segment, it may lose 600 Bps market share in the passenger vehicle segment over FY20-22.
BSE FMCG index fell 1 percent dragged by the GRM Overseas, Parag Milk Foods, Varun Beverages
Punjab Alkalies board approves sub-division of equity share
The board of directors of Punjab Alkalies and Chemicals in its meeting held on 02.12.2021 considered and approved the sub-division of each equity share of face value of Rs 10 each into 5 equity shares of face value of Rs 2 each subject to the approval of shareholders.
It has touched a 52-week high of Rs 229.95 and was quoting at Rs 217, down Rs 1.95, or 0.89 percent.
Nifty Bank index shed 1 percent dragged by the Kotak Mahindra Bank, HDFC Bank, SBI
Nagarjuna Fertilisers restarts urea production
Nagarjuna Fertilisers and Chemicals has restarted Urea Production in Plant -I, from December 01, 2021.
The company had taken a temporary shutdown of urea production on November 24, 2021, to take up temporary repairs
Nagarjuna Fertilisers and Chemicals was quoting at Rs 12.08, up Rs 0.57, or 4.95 percent on the BSE.
The share touched a 52-week high of Rs 20.67 and a 52-week low of Rs 4.40 on 15 July, 2021 and 25 January, 2021, respectively.
Currently, it is trading 41.56 percent below its 52-week high and 174.55 percent above its 52-week low.
Market at 3 PM
Benchmark indices extended the fall in the final hour of trading with Nifty around 17200 dragged by FMCG and Financial names.
The Sensex was down 744.24 points or 1.27% at 57717.05, and the Nifty was down 198.40 points or 1.14% at 17203.30. About 1682 shares have advanced, 1332 shares declined, and 123 shares are unchanged.
Sun Pharma Advanced in licensing agreement with Biomodifying
Sun Pharma Advanced Research Company (SPARC) has entered into an agreement with Biomodifying LLC (Biomodifying) to exclusively license Biomodifying’s intellectual property, including all patents and patent applications owned or controlled by Biomodifying, along with antibodies developed for multiple uses including for cancer, company said in its release..
Sun Pharma Advanced Research Company was quoting at Rs 254.00, up Rs 5.50, or 2.21 percent.
Lakshmi Iyer, CIO – Debt & Head – Products, Kotak Mahindra Asset Management Company:
As the cobwebs being to clear wrt policy making front, world central bankers are grappling with the debut of the Omicron variant of Covid virus! The path to normalisation has begun across the world, including India, and is less likely to stop for now.
We therefore expect a reasonably high chance of 15/20bps hike in reverse repo rate – a start to reduce the gap between repo and rev repo rate.
The policy stance may remain status quo and hinge on incremental developments in the near term. We expect VRRR as a tool to normalise liquidity to continue to gain momentum.
European indices trade in the green
Anand Rathi IPO updates
The public offer of Anand Rathi Wealth, one of the leading non-bank wealth solutions firms in India, has garnered bids for 2.01 crore equity shares as against an IPO size of 84.75 lakh units, subscribing 2.38 times on December 3, the second day of bidding.
The portion set aside for retail investors and non-institutional investors was subscribed 3.82 times and 2.47 times, respectively. Employees have put in bids for 47 percent shares of their allotted quota, while qualified institutional buyers bought 1 percent of shares reserved for them.
Rajani Sinha, Chief Economist and National Director - Research, Knight Frank India
: RBI has started the process of normalization by mopping out excess liquidity from the system through enhanced VRRR auction and suspending the G-SAP. There was growing expectations that in the December MPC meeting, RBI would hike the reverse repo rate to narrow the corridor between repo and reverse repo rate. However, the new COVID variant Omicron has again pushed the global and Indian economy in a state of uncertainty and nervousness. There is also added uncertainty of any knee-jerk reaction of Indian and global financial markets to Fed’s monetary policy indication/action. In such a scenario, RBI in its upcoming meeting is likely to keep the rates on hold. On the growth front, while most economic indicators have surpassed pre-Covid levels, there is still a lot of slack in the economy. Hence RBI may decide to wait and watch till the next MPC meeting in February 2022.
RBI will be concerned about inflationary pressure building in the economy. Currently the upward pressure on inflation is because of high commodity prices and supply bottlenecks. However, with economic growth gathering momentum, there is threat of further demand side pressure on inflation. We can expect RBI to start hiking rates from 2022. RBI will also narrow the corridor between repo and reverse repo rate, with sharper hike in reverse repo rate. The quantum of rate hike will be dependent on how the COVID scenario pans out and its subsequent impact on economic growth in 2022.
Market update at 2 PM: Sensex is down 409.37 points or 0.70% at 58051.92, and the Nifty shed 101.90 points or 0.59% at 17299.80.
Biocon gets approval for ANDA for Mycophenolic acid from USFDA
Biocon Pharma, a subsidiary of Biocon, received approval of its ANDA for Mycophenolic Acid from the USFDA.
This product is indicated for the prophylaxis of organ rejection in adult patients receiving a kidney transplant and is available in 180mg and 360mg strengths. This approval further adds to Biocon’s portfolio of vertically integrated complex drug products
Biocon was quoting at Rs 368.50, up Rs 1.25, or 0.34 percent.
CR Forex Advisors
In a given tug of war between Risk-on and risk-off, it becomes difficult to gauge a directional view on any currency pair. However, strong fundamentals always work towards that direction. The USD- which was seen under pressure after the announcement of Omicron could have a dip dive.
At last, stronger economic data & Fed’s hawkish turn is discounting a rate hike prospects.
After mixed ADP non-farm payroll data, all eyes will be on today’s NFP. Fed will surely consider this data while judging the pace of bond tapering in upcoming monetary policy, which is scheduled at 14th & 15th Dec. Today, the Indian Rupee is likely to trade in the range of 74.85-75.15.
Jubilant Ingrevia board approves buyback of NCDs worth Rs 100 crore
The finance committee of Jubilant Ingrevia has, at its meeting held on December 2, 2021 approved the buy-back of 1,000 7.90% Secured Rated Listed Redeemable Non-Convertible Debentures of Rs 10,00,000 each aggregating to Rs 100 crore.
Jubilant Ingrevia was quoting at Rs 579.75, up Rs 17.35, or 3.08 percent on the BSE.
Market at 1 PM
Benchmark indices extended the losses and trading near the day's low with Nifty around 17300.
The Sensex was down 309.48 points or 0.53% at 58151.81, and the Nifty was down 75.10 points or 0.43% at 17326.60. About 1830 shares have advanced, 1133 shares declined, and 117 shares are unchanged.
Buzzing
The share price of Angel One gained almost 4 percent on December 3 after the broking company reported that its client base during November grew to 7.32 million from 6.93 million in the previous month and was up about 146 percent on year.
In November, the company’s overall average daily turnover rose 9.5 percent on month and 219 percent on year to Rs 7,217 billion.
The company's retail turnover market share in the overall equity segment stood at 21 percent compared to 20.7 percent in October and 15.4 percent in November 2020.
Hindustan Zinc to consider interim dividend on December 7
Shares of mining major Hindustan Zinc gained more than 3 percent on December 3 after the company said its board would meet on December 7 to consider and approve interim dividend on equity shares for FY22.
The record date for eligibility of interim dividend, if any, would be December 15, the company said in a regulatory filing.
Morepen Laboratories gets USFDA nod for Fexofinadine
Morepen Laboratories has received USFDA approval for its anti-allergy drug Fexofinadine Hydrochloride that is market in India under the popular brand name Allegra, among others and is the block buster drug of the innovator company Sanofi Aventis, France.
Fexofinadine is most widely used, second generation antihistamine drug for the treatment of allergy symptoms and hay fever.
Morepen Laboratories was quoting at Rs 52.90, up Rs 1.90, or 3.73 percent on the BSE.
Tega Industries IPO subscribed 29.19 times on final day
The initial public offering (IPO) of Tega Industries continues to elicit a good response, with the issue subscribed 29.19 times on the final day on December 3. Bids had come in for 27.93 crore equity shares against an offer size of 95.68 lakh.
The IPO has seen strong demand for all investors. The retail portion has been subscribed 22.11 times and the non-institutional investors one 74.90 times. Qualified institutional investors have put in bids 7.31 times their allotted quota.
Anand Rathi IPO oversubscribed by 2.13 times on Day 2
The public offer of Anand Rathi Wealth, one of the leading non-bank wealth solutions firms in India, has garnered bids for 1.80 crore equity shares as against an IPO size of 84.75 lakh units, subscribing 2.13 times on December 3, the second day of bidding.
The portion set aside for retail investors and non-institutional investors was subscribed 3.38 times and 2.27 times, respectively. Employees have put in bids for 45 percent shares of their allotted quota, while qualified institutional buyers bought 1 percent of shares reserved for them.
L&T and Kemroc enter into a distribution agreement
Larsen and Toubro and Kemroc have entered into a distribution agreement that will facilitate Kemroc products to be distributed and promoted in the Indian market by L&T.
Larsen & Toubro was quoting at Rs 1,816.00, up Rs 27.05, or 1.51 percent on the BSE.
Market at 12 PM
Benchmark indices were trading flat amid volatility with buying seen in the capital goods and realty stocks.
The Sensex was down 52.47 points or 0.09% at 58408.82, and the Nifty was down 6.50 points or 0.04% at 17395.20. About 1991 shares have advanced, 937 shares declined, and 99 shares are unchanged.
BSE Smallcap index rose 1 percent supported by the Ramco Systems, REliance Industrial Infrastructure, Zee Learn
KEC International secures new orders of Rs 1,065 crore
KEC International has secured new orders of Rs 1,065 crore across its various businesses.
Transmission & Distribution business has secured orders for T&D projects in India, Middle East, Africa, and Americas and Railways business has secured an order for construction of Railway Siding in the conventional segment in India.
Its Civil business has secured an order for infra works in the Water Pipeline segment in India and Oil & Gas Pipelines business has secured an order for laying of oil and gas pipeline, through our wholly owned subsidiary, Spur Infrastructure Pvt. Ltd.
The Cables business has secured orders for various types of cables in India and overseas.
KEC International was quoting at Rs 444.20, up Rs 12.45, or 2.88 percent on the BSE.
Hero MotoCorp expands operations in Argentina
Hero MotoCorp along with Gilera Motors Argentina has expanded operations and inaugurated a flagship dealership in Argentina, company said in the release.
The company had recently announced the revitalisation of its presence in Argentina by partnering with Gilera Motors, one of the leading companies in the motor vehicle sector in Argentina and one of the most experienced motorcycle manufacturers in Latin America.
Hero MotoCorp was quoting at Rs 2,487.65, up Rs 17.75, or 0.72 percent on the BSE.
BSE Realty index added 1 percent led by the Indiabulls Real Estate, Oberoi Realty, Phoenix Mills
Tega Industries IPO issue subscribed 17.55 times on final day
The initial public offering (IPO) of Tega Industries continues to elicit a good response, with the issue subscribed 17.55 times by the morning of December 3, the final day of bidding. Bids had come in for 16.79 crore equity shares against an offer size of 95.68 lakh.
The IPO has seen strong demand for all investors. The retail portion has been subscribed 20.31 times and the non-institutional investors one 28.98 times. Qualified institutional investors have put in bids 4.15 times their allotted quota.
Anand Rathi IPO updates
The public offer of Anand Rathi Wealth, one of the leading non-bank wealth solutions firms in India, has garnered bids for 1.62 crore equity shares as against an IPO size of 84.75 lakh units, subscribing 1.92 times on December 3, the second day of bidding.
The portion set aside for retail investors and non-institutional investors was subscribed 3.02 times and 2.13 times, respectively. Employees have put in bids for 44 percent shares of their allotted quota, while qualified institutional buyers bought 1 percent of shares reserved for them.
Centre may bring cryptocurrency exchanges under ambit of Sebi: Report
The Union government is reportedly planning to bring rename cryptocurrency and place it under the regulatory ambit of Sebi instead of imposing a ban, according to a Mint report.
"Under the proposed law, cryptocurrency will be renamed crypto-asset and brought under the ambit of the Securities and Exchange Board of India (Sebi)," the publication reported on 3 December quoting sources.
According to the report, by renaming cryptocurrency, the Centre aims to avoid an overlap between crypto-asset and the proposed digital currency by the Reserve Bank of India (RBI).
Market update at 11 AM: Sensex is down 77.52 points or 0.13% at 58383.77, and the Nifty shed 15.30 points or 0.09% at 17386.40.
L&T shares rise on green hydrogen bond with ReNew Power
Larsen & Toubro (L&T) share gained over 2 percent on Friday after the company announced partnership for green hydrogen projects in India.
The engineering conglomerate on December 2 announced that it will jointly own and operate green hydrogen projects with Goldman Sachs-backed green energy producer ReNew Power.
“Under this agreement, L&T and ReNew will jointly develop, own, execute and operate green hydrogen projects in India,” a joint statement said.
Anand Rathi IPO oversubscribed by 1.81 times on Day 2
The public offer of Anand Rathi Wealth, one of the leading non-bank wealth solutions firms in India, has garnered bids for 1.53 crore equity shares as against an IPO size of 84.75 lakh units, subscribing 1.81 times on December 3, the second day of bidding.
The portion set aside for retail investors and non-institutional investors was subscribed 2.82 times and 2.04 times, respectively. Employees have put in bids for 44 percent shares of their allotted quota, while qualified institutional buyers bought 1 percent of shares reserved for them.
November Services PMI & Composite PMI:
India's November Services Purchasing Managers’ Index (PMI) stood at 58.1 against 58.4 in October 2021 and Composite PMI was at 59.2 versus 58.7, MoM.
Tega Industries IPO subscribed 16.22 times on final day
The public issue of Tega Industries continued to see healthy subscription on December 3, the final day of bidding, as it has so far been subscribed 16.22 times through bids for 15.44 crore equity shares in an offer size of 95.68 lakhs.
The demand for the offer has been very strong from all kinds of investors. The reserved portion of retail and non-institutional investors was subscribed 18.68 times and 26.53 times, respectively.
Qualified institutional investors have put in bids 4.02 times their allotted quota.
Gaurav Garg, Head of Research, Capitalvia Global Research
The Indian benchmarks have started today on positive note amid mixed global cues. Traders will be concerned with the uncertainty surrounding the Omicron variant.
RBI data showed that credit in banking business rose by 6.97 percent in 12 months ended November 2021. Provisional data showed on NSE that foreign portfolio investors (FPIs) remained net sellers for Rs 2765.84 crore in the Indian markets.
Our research suggests that the levels of 17300 and 17600 may act as an important support and resistance respectively. We can expect it to trade in the range of 17300-17600. Technical indicators also support positivity in the market.
JSW Steel merges 3 units in West Virginia with respective holding companies
As part of the JSW Steel's overall efforts to restructure and consolidate its US Coal operations and holding structure, the step-down subsidiary companies of the company, operating at West Virginia, USA, have been merged with their respective holding Companies effective December 2, 2021.
Keenan Minerals, LLC, R.C. Minerals, LLC and Peace Leasing, LLC merged with its holding company Purest Energy, LLC
Periama Handling, LLC and Rolling S Augering, LLC merged with its holding company Planck Holdings, LLC
Prime Coal, LLC merged with its holding company Periama Holdings LLC.
JSW Steel was quoting at Rs 648.00, up Rs 1.00, or 0.15 percent.
Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors
Dollar rupee has been in the range for 3 days in succession. Today's opening also is near to 75.00 with a range of 74.80 to 75.20.
Lower volumes and directionless trade has kept it in the range as markets await for today's non-farm pay roll data expected to come at about 550k.
Exporters may wait for higher levels with a stop below 74.70, while importers need to keep buying near 74.80 for their near term imports.
