Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
Domestic indices traded cautiously ahead key events lined up this week. Nifty opened positive but soon drifted in red and remained lackluster throughout the session to finally close flat at 18701.Broader market continued with its outperformance with Nifty midcap 100 finally crossing its 52W high and is just 2-3% away from all time high levels.
Going ahead the momentum in the mid and small cap companies is likely to continue. Metals, Banking and Realty sectors would continue seeing traction. Banking stocks will be in lime light ahead of RBI policy outcome. Reopening of China and surge in metal prices would keep momentum in metal stocks while strong demand in real estate would keep realty and building material stocks in flavour.
Even NBFCs might see some action as disbursements continue to remain healthy. Gold finance companies especially will continue to be in limelight as surge in gold price to 8-month high makes them a lucrative bet.
We expect market to consolidate for next few days given the RBI policy on Wednesday and Gujarat election outcome on Thursday. Tomorrow we might see some reaction based on Gujarat exit poll data today.
Vinod Nair, Head of Research at Geojit Financial Services:
Market continued its profit booking trend from the record high as they exercised prudence ahead of the RBI policy announcement on 7th December.
Partially, it was also due to increase in crude prices due to OPEC decision not to cut output target, and ease in China’s covid policy.
The IT sector witnessed the highest profit booking, while bank and metals outperformed. Market expects a 35bps rate hike compared to 50bps in the previous three meets in anticipation of a fall in inflation forecast.
Mohit Nigam, Head - PMS, Hem Securities
In the afternoon session, local equity benchmarks recovered from the day's low. Selling interest was being seen in IT stocks. Investors awaited the Reserve Bank of India's announcement on monetary policy, which was scheduled for later this week.
In November, India's services industry expanded significantly as both company activity and sales increased quickly. In November, the S&P Global India Services PMI Business Activity Index increased to 56.4 from 55.1 in October.
Furthermore, the manufacturing and service output indicators of the S&P Global India Composite PMI Output Index increased from 55.5 in October to 56.7 in November.
Ahead of a ban by the European Union and the implementation of a price ceiling on Russian crude, OPEC+ countries maintained their output objectives, keeping the oil and gas sector in the spotlight.
As firms resumed operations and testing restrictions were loosened in numerous cities, including Beijing and Shanghai, Asian markets were mainly trading in the green on the global front. Prior to the release of important activity statistics, European markets primarily traded in the negative, with prudence being the watchword even as more Chinese cities loosened mobility restrictions.
On the technical front, immediate support and resistance in Nifty50 are 18,600 and 18,800 respectively. For Bank Nifty immediate support and resistance are 43,000 and 43,600 respectively.
Ajit Mishra, VP - Technical Research, Religare Broking
Markets made a muted start to the week and ended almost unchanged. After the flat start, the Nifty index oscillated in a narrow range and finally settled at the 18,701 level. Meanwhile, a mixed trend on the sectoral front kept the participants busy wherein buying in metal, banking and realty space capped the downside.
Amid all, the positive bias on the broader front pushed the market breadth to the advancing side.
We’re seeing consolidation on the expected lines, which is healthy after the recent surge. We expect the resumption of the trend soon meanwhile focus on sectors that are attracting buying interest on every dip and select the stocks accordingly.
Shrikant chouhan, Head of Equity Research (Retail), Kotak Securities
Markets were extremely range-bound with a negative bias with most of the Asian indices too closing on a sluggish note. Investors are keeping a low profile ahead of RBI's credit policy meeting this week, while lack of fresh triggers from global markets too have been a dampener.
Another factor could be the recent rally was too fast paced and hence nobody wants to risk taking long only bets.
Technically, after the early morning selloff the Nifty took support near 18,600 and reversed sharply. However, the short term texture of the market is still non directional.
We are of the view that 18,600 could act as a sacrosanct support zone for the market. If the index trades above the same it could retest 18,800-18,850 in the near future. On the flip side, below 18,600, the index could slip till 18,500-18,450.
Rupee Close:
Indian rupee closed 48 paise lower at 81.79 per dollar on Monday against Friday's close of 81.31.
Market Close:
Indian benchmark indices ended on flat note in the volatile session on December 5.
At Close, the Sensex was down 33.90 points or 0.05% at 62,834.60, and the Nifty up 4.90 points or 0.03% at 18,701. About 2080 shares have advanced, 1401 shares declined, and 191 shares are unchanged.
Apollo Hospitals, Tata Motors, Reliance Industries, Tech Mahindra and SBI Life Insurance were among the top Nifty losers. The gainers were Hindalco Industries, Tata Steel, UPL, ONGC and Coal India.
Among sectors selling was seen in the auto, IT, pharma, while buying is seen in the PSU bank, realty, and metal stocks.
The BSE midcap and smallcap indices ended on flat note.
Morgan Stanley 'Overweight' rating on ICICI Bank, target Rs 1,250 per share
-Overweight call, target Rs 1,250 per share
-Showcased various digital assets where they have made further progress
-Will drive better productivity/cross-sell & higher customer retention
ICICI Bank was quoting at Rs 933.60, up Rs 2.80, or 0.30 percent on the BSE.
BSE realty index rose 0.8 percent led by the Sobha, Mactotech Developers, Indiabulls Real Estate
Rahul Chander, MD & CEO of LivFin (Fintech NBFC):
Since inflation continues to slowly ease off across the world, interest rate hikes have also started to ease off. We are now hopefully in the last possible 75-100 bps hike of the cycle. The MPC will have to keep in mind the impact of rate increases on GDP growth, the expectation for which for FY2023 has moderated sharply.
While part of this could be attributed to unforeseen events like the Russia- Ukraine conflict which has played havoc with the commodity markets, the previous rate hikes have also partially contributed to the falling GDP growth.
The INR exchange rate vis-à-vis the USD especially has also been a matter of concern, though the trend seems to have been reversed over the last few weeks. However, with the MPC meeting in December coming a few weeks before the next US Fed meeting, the MPC will have its task cut out, as a significant increase in US Fed rate will have its bearing on the exchange rate.
Hence a delicate balance is now needed in determining additional rate increases. The US Fed eased off the interest rate hike from about 75 bps to 50 bps and has indicated a further reduction. Similarly, the Reserve Bank of India is also expected to ease it off from a 50 bps hike to 25-35 basis points (possibly towards the lower end of that band).
ALERT | UK November Services PMI at 48.8 versus estimates of 48.8
Market at 3 PM
Benchmark indices were trading flat with negative bias with Nifty around 18,700.
The Sensex was down 63.17 points or 0.10% at 62805.33, and the Nifty was down 3.30 points or 0.02% at 18692.80. About 1958 shares have advanced, 1362 shares declined, and 161 shares are unchanged.
CLSA maintains Buy on Mahindra & Mahindra Financial Services, target Rs 260
-Buy call, target Rs 260 per share
-Disbursement traction remained healthy & collections were strong
-Stage-2 assets declined whereas stage-3 was largely stable
-Management expects both to improve in December due to seasonality
-Company has made many on-ground changes & is witnessing impact of that in its numbers
-Only negative surprises that could come in forthcoming results are NIMs or Opex
Mahindra & Mahindra Financial Services was quoting at Rs 241.75, up Rs 12.75, or 5.57 percent and touched 52-week high of Rs 243.60.
Jindal Stainless signs contract with ReNew Power
Jindal Stainless today signed a contract with the country’s largest renewable energy company, ReNew Power, to develop a utility scale captive renewable energy project for the supply of power to its facility in Jajpur, Odisha.
November Auto Sales | Tata Motors JLR UK sales up 2.6% at 4,204 units versus 4,097 units, YoY and up 15.2% MoM
Infosys establishes new proximity center in Gothenburg, Sweden
Infosys today announced a new proximity center in Sweden. With this investment, Infosys aims to enhance its localization strategy in the Nordics by bringing next-generation digital offerings to its clients in the region, as they navigate the next stage in their digital journeys, company said in its release.
Infosys was quoting at Rs 1,629.30, down Rs 9.25, or 0.56 percent.
Dhanlaxmi Bank board approves fundraising up to Rs 300 crore via NCDs
The Board of Directors of Dhanlaxmi Bank has considered and approved the raising of funds by the Bank by way of issuance of Non Convertible Debentures (NCDs) in the form of Basel III compliant Tier 2 bonds aggregating to Rs 300 crore in one or more ranches over a period of time.
Eurozone Data Watch | Eurozone November services PMI at 48.5
Citi maintains sell on Samvardhana Motherson, target Rs 68
-Sell call, target Rs 68 per share
-Management says group revenue will reach USD 36 billion by FY25 with RoCE of 40%
-C3X10 strategy will imply that no country, customer or component will be >10% of turnover
- Management says automotive segment revenue will be 75% of total, w/rest from new divisions
- Management says dividend payout will be 40% of profit
-Still think that growth aspirations are ambitious
-Even if company does achieve revenue target, return ratio & margin would be compromised
KPI Green Energy bags order for executing solar power project of 1.10 Mwdc capacity
European Markets Updates
Market update at 2 PM
Sensex is down 219.98 points or 0.35% at 62648.52, and the Nifty is down 54.30 points or 0.29% at 18641.80.
Gold near 5-month peak as dollar dips, China eases COVID curbs
Gold prices steadied on Monday after hitting a five-month high, as the dollar edged lower after more Chinese cities relaxed COVID-19 restrictions over the weekend.
Spot gold was little changed at $1,799.26 per ounce by 0717 GMT, after touching its highest level since July 5 at $1,809.91. U.S. gold futures ticked 0.1% higher to $1,812.10.
The dollar index held close to a more than five-month low, making greenback-priced bullion less expensive for overseas buyers.
Credit Suisse share price gains 3% as Saudi Crown Prince plans investment in its unit
Credit Suisse share price gained more than 3 percent on December 5 as Saudi Arabia’s Crown Prince Mohammed bin Salman is preparing to invest in Credit Suisse Group AG’s investment bank, the Wall Street Journal reported.
Shreehas Tambe appointed as Managing Director and CEO of Biocon Biologics
Biocon Biologics, a subsidiary of Biocon announced today that Shreehas Tambe, Deputy CEO of Biocon Biologics, has been appointed as the Managing Director and CEO of the company from December 5, 2022.
Biocon was quoting at Rs 281.50, down Rs 2.20, or 0.78 percent on the BSE.
Dharmaj Crop Guard IPO share allotment expected today
Agrochemical manufacturer Dharmaj Crop Guard is on December 5 expected to announce the share allotment for its initial public offering (IPO) which got a good response from investors in the previous week.
The Rs 251-crore initial public offering, which opened for bidding from November 28 to 30, was subscribed 35.49 times. The portion set aside for qualified institutional buyers, high networth individuals, and retail investors was subscribed 48.21 times, 52.29 times, and 21.53 times, respectively.
Investors have two options to check their share allotment status. Read More
HPL Electric and Power receives its first set of formal orders to supply 5G electric products
HPL Electric and Power has received its first set of formal orders for supply of 5G electric products including cable to the top telecom companies.
Dabur International CEO Krishan Kumar Chutani resigns, Raghav Agrawal will take over as CEO
Mr. Krishan Kumar Chutani, Chief Executive Officer (CEO) of Dabur International Limited (material subsidiary of Dabur India Limited) has tendered his resignation from the services of Dabur International Limited on 5th December 2022, to pursue career outside Dabur.
He will continue in his current position till 28th February, 2023.
Mr. Raghav Agrawal has joined Dabur International Limited today and will take over from Mr. Krishan Kumar Chutani as CEO of Dabur International Limited.
ALERT |Vodafone Group CEO Nick Read resigns, reported CNBC-TV18.
Promoter offloads IIFL Wealth Management shares worth Rs 94.5 crore
Promoter Nirmal Madhu Family Private Trust offloaded shares worth Rs 94.50 crore as it sold 5.25 lakh shares via open market transactions, at an average price of Rs 1,800.08 per share.
IIFL Wealth Management Limited was quoting at Rs 1,805.35, up Rs 7.15, or 0.40 percent on the BSE.
Nomura View on Tech Companies:
-See divergence in the operating performance of IT companies in FY24
-IT sector valuation has moderated significantly
-However, valuations remain elevated when compared with long-term averages
-Top buy picks are Infosys & Persistent, top reduce pick is TCS
Lupin launches Rufinamide Tablets USP in the United States
Global pharma major Lupin Limited (Lupin) today announced the launch of Rufinamide Tablets USP, 200 mg and 400 mg, to market a generic equivalent of Banzel Tablets, 200 mg and 400 mg, of Eisai Inc.
Lupin was quoting at Rs 769.45, down Rs 5.90, or 0.76 percent on the BSE.
Airtel and Meta collaborate to accelerate India’s digital ecosystem
Bharti Airtel and Meta Platforms, Inc. today announced a collaboration to support the growth of India’s digital ecosystem.
Airtel and Meta will jointly invest in global connectivity infrastructure and CPaaS based new-age digital solutions to support the emerging requirements of customers and enterprises in India.
Bharti Airtel was quoting at Rs 843.40, down Rs 5.45, or 0.64 percent.
Market at 1 PM
Benchmark indices were trading flat in the afternoon session amid volatility.
The Sensex was down 47.55 points or 0.08% at 62820.95, and the Nifty was down 9.60 points or 0.05% at 18686.50. About 2008 shares have advanced, 1262 shares declined, and 153 shares are unchanged.
Bigbloc Construction purchases land for setting up new unit for manufacturing AAC Panels & blocks
Bigbloc Construction has purchased the land for setting up of new unit for manufacturing of AAC Panels as well as blocks at Ramosadi, Kheda District, Kapadvanj, near Ahmedabad, admeasuring approximately 60,000 sq. mtrs. in the name of 'Siam Cement Big Bloc Construction Technologies Private Limited", a subsidiary of Bigbloc Construction.
L&T Construction gets contract for Bullet Train Project
The Buildings & Factories Business of L&T Construction has secured an order from the National High-Speed Rail Corporation Limited (NHSRCL) to construct the Sabarmati Depot (MAHSR – D-2) in the state of Gujarat for the Mumbai – Ahmedabad High Speed Rail (MAHSR) project through a consortium led by Sojitz Corporation, Japan.
CLSA upgrades Voltas to Outperform from Sell, with a target price of Rs 935
Global brokerage firm CLSA upgraded Voltas to Outperformfrom Sell, with a target price of Rs 935 a share, an upside of 9 percent from the current market price.
The global research firm said that after the sharp underperformance this year, negatives were largely priced in. The underperformance was largely due to high competitive intensity in air-conditioners (ACs), leading to market share and margin loss and hence it estimates downgrades.
Voltas was quoting at Rs 856.15, up Rs 1.05, or 0.12 percent on the BSE.
Geojit upgrades Natco Pharma to 'Buy' rating with a target price of Rs 704
-Upgrade to a Buy rating with a target price of Rs 704
-Expect revenue and operating performance to improve on the back of a strong agro sales, focus on US front-end business, increased R&D and new launches of niche molecules with high entry barriers
-The sale of Revlimid and CTPR promises strong growth in terms of revenue and profitability in the near-term
Strong case for RBI to take a pause after December policy meeting: Chirag Mehta of Quantum AMC
Quantum AMC Chief Investment Officer Chirag Mehta is positive about the recovery being seen in the Indian economy, which, he says, should support earnings for the next two to three years.
The revival in real estate, pick up in IT hiring, improved credit growth and robust tax collections are the factors powering this cyclical recovery, he says.
He expects the RBI to go for “a 25-35 basis point rate hike with a divided Monetary Policy Committee" this week. In an interview to Moneycontrol, Mehta says going into next year, there is a strong case for the central bank to pause and recalibrate the monetary policy. Click To Read More
JPMorgan reiterates 'Overweight' rating on Paytm, target price Rs 1,100
-Reiterates 'Overweight' rating with target price of Rs 1,100
-Expect Paytm to see strong revenue growth across all its business segments
-See revenues growing at a >44% CAGR over FY22-26, to USD 2.7 billion
-See Paytm retaining the highest revenue and profit levels among local vertical and global horizontal peers
Compuage Infocom concludes rights issue
Compuage Infocom has closed its rights issue period with subscriptions amounting to approximately 1.45 times of the issue size.
"We at Compuage, are grateful by the response, as this will not only assist us in achieving our objectives, but also accelerate our strategic initiatives, such as growing our reach, driving the company and will also allow us to more aggressively seize the growth possibilities that lie ahead," said Atul Mehta, Chairman & Managing Director.
Compuage Infocom was quoting at Rs 26.05, down Rs 0.05, or 0.19 percent on the BSE.
ICICI Lombard and AU Small Finance Bank announce Bancassurance tie-up
ICICI Lombard General Insurance is entering into a Bancassurance tie-up with AU Small Finance Bank.
The partnership will provide the Bank’s diverse customers access to the insurer’s portfolio and enhance penetration across India.
ICICI Lombard General Insurance Company was quoting at Rs 1,233.60, down Rs 5.10, or 0.41 percent and AU Small Finance Bank was quoting at Rs 651.60, up Rs 3.05, or 0.47 percent.
Ravindra Rao, CMT, EPAT VP-Head Commodity Research, Kotak Securities
COMEX Gold surged to four months high of USD 1818/oz while Silver breached USD 23/oz for the first time since May as lower than expected Core PCE figures further buoyed expectations of slower rate hikes and pushed dollar to four-month lows below 104.5.
Weakness in US Dollar and softening bond yields have helped bullion to close with sharp gains for November although Investment demand saw a minor decline with both SPDR and iShares holdings witnessing modest outflows.
The dollar may not see a major rebound as a better than expected US Nonfarm payrolls report is unlikely to lead to a shift in Fed’s current stance of slower rate hikes.
Focus now will be on the November inflation report that will be released next week along with the FOMC meeting for December.
On the price action front although COMEX gold has closed above the 252 DMA resistance near USD 1805 it has to sustain above the break candle high of USD 1819 on a closing basis. Additionally, a falling trend line 2nd reaction high near USD 1825 might act as a hurdle. Having said that the bulls might have to sustain the price above USD 1825 for the next leg of rally towards USD 1884.
Market Update:
Market erased some of the intraday losses but still trading lower with Nifty 18650.
The Sensex was down 186.22 points or 0.30% at 62,682.28, and the Nifty was down 49.30 points or 0.26% at 18,646.80. About 2021 shares have advanced, 1210 shares declined, and 161 shares are unchanged.
Here are the stocks are locked on the upper circuit or have only buyers; click to view more
Cravatex sells material subsidiary to Metro Brands
Cravatexhas completed the sale of its 100% shareholding held in Cravatex Brands, a material subsidiary, to Metro Brands.
Cravatex was quoting at Rs 419.70, up Rs 7.90, or 1.92 percent on the BSE.
Adani Green commissions 450 MW wind-solar hybrid power plant in Rajasthan
Adani Green Energy has commissioned its third wind-solar hybrid power plant at Jaisalmer in Rajasthan. The combined operational generation capacity of this newly commissioned hybrid power plant is 450 MW.
The plant has Power Purchase Agreements (PPA) with SECI at Rs 2.67/kwh for 25 years.
Shriram Transport Finance, and Shriram City Union Finance merged to form Shriram Finance
Shriram Transport Finance Company and Shriram City Union Finance have been merged to form Shriram Finance Limited.
Shriram Finance will be a diversified player with a robust net worth of Rs 40,900 crore and Assets under Management (AUM) of Rs 1,71,000 crore, the company caters to over 6.7 million customers across India.
Indian Energy Exchange achieves 7764 MU total volume traded in November 2022
The Indian Energy Exchange achieved 7764 MU total volume traded in November 2022, including Green Power trade of 354 MU, and 3.72 lac RECs (equivalent to 372 MU).
The total electricity volume traded on the Exchange in November’22 was 7392 MU, an increase of 9% on YoY. However, the overall volume reduced 16% YoY, as the corresponding month last year had exceptionally high REC volumes of 24.4 lacs to fulfil the pent-up demand caused by a 16-month gap of trading, company said in its release.
