Ajit Mishra, VP - Research, Religare Broking:
Markets extended the prevailing momentum and gained nearly one and a half percent, tracking firm global markets. The news of the Covid-19 vaccine with high efficiency raised hopes of faster than expected recovery in the global economy boosted the sentiment. On the domestic front, buoyancy continued in the banking and financial majors which gradually pushed the index as the session progressed. Consequently, the Nifty ended at 12,631 levels, up by 1.4%. However, the broader market traded subdued and ended down in the range of 0.1- 0.5%.
Nifty is not showing any sign of slowing down and may take a breather around 12,800. Needless to say, the recent surge was largely driven by banking and financials while others are contributing selectively. Traders should align their positions accordingly and use dips to accumulate stocks that are participating in the rally.
Vinod Nair, Head of Research at Geojit Financial services:
The global financial markets experienced a wave of euphoria over the potential breakthrough in the coronavirus vaccine development. Indian indices moved in sync with global peers touching fresh highs with continued support from banking stocks while IT and Pharma sectors witnessed heavy sell-offs. An uptick in beaten down stocks & sectors were visible today viewing hopes of recovery in business.
The existing momentum can sustain on vaccine development, domestic stimulus package, consistent FII inflows and bounce in globalization post the Biden victory. However, temporary correction due to profit booking cannot be ruled out because the market is highly optimistic that the vaccine development will rapidly improve the ground reality.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
We almost hit 12650 on the Nifty; if we are able to sustain the levels of 12650-12700, the index can move to 13000 levels. Hence 12700 might pose a resistance and some profit booking can be considered at these levels and thereafter a buy on dips strategy can be used to enter the Nifty on any dip or correction.
Santosh Kumar Singh, Head of Research, Motilal Oswal Asset Management Company:
Markets are at all-time high, however they are driven by three news flows a) US elections uncertainty over b) COVID Vaccine may be much closer and c) India recovery has been faster. Hence, the markets may not see big correction from here and in the medium to long term we see markets doing well. In my view financials is still an area where good upside may be left with all the banks reporting better credit quality.
S Ranganathan, Head of Research at LKP Securities:
Bulls went on a rampage today buoyed by positive global cues and the 1.5% rise in Indices reflected the buoyant mood ahead of the festive season. Financials went berserk well supported by heavy weights across sectors barring Pharmaceuticals which witnessed profit booking.
Market Close
: Benchmark ended higher for the seven straight session on November 10 helping to close at record high levels on the back of progress in the development of a coronavirus vaccine.
At close, the Sensex was up 680.22 points or 1.60% at 43277.65, and the Nifty was up 170.10 points or 1.37% at 12631.10. About 1203 shares have advanced, 1457 shares declined, and 172 shares are unchanged.
Bajaj Finance, IndusInd Bank, L&T, Bajaj Finserv and HDFC were among major gainers on the Nifty, while losers were Cipla, Tech Mahindra, HCL Tech, Divis Labs and Nestle.
On the sectoral front, except Nifty IT (down 3.8 percent) and Nifty Pharma (down 4.3 percent), other indices ended in the green led by the Nifty Bank (up 3.9 percent) followed by the Nifty Infra (up 2 percent).
Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services:
Gold slumped more than 5% in the previous session as news of the first successful late-stage COVID-19 vaccine trials prompted investors to dump safe-haven bullion and flock to riskier assets. Pfizer and German partner BioNTech SE the first drug makers to show successful data from a large-scale clinical trial of a vaccine, said they expect to seek US emergency use authorization for the drug later this month.
The vaccine news was so sudden and out of the blue that there was no time to think and a quick reaction was seen in all asset classes, equities and yield surged whereas bullion's slipped. Apart from the vaccine news gold has some support amidst the hopes of Covid-19 relief bill under the Joe Biden's leadership, continuous rise in Covid cases globally and post US elections updates as President Trump knocking court's door at various states to prove that Joe Biden's victory is not real.
Economic data is muted on the US front although market participants will keep an eye on the unemployment rate expected from EU. Broader trend on COMEX could be in the range of $1860- 1915 and on domestic front prices could hover in the range of Rs 49,600-50,900.
Tata Comm gets order from De Tune
De Tune has selected Tata Communications as the backbone of its next-generation broadcast viewing experience for live events produced virtually anywhere on the globe.
De Tune has been able to simplify its global production operations by consolidating multiple vendors into one cohesive media ecosystem with the help of Tata Communications’ end-to-end live video services.
NCC Q2
Company posted 21.4 percent fall in its Q2 net profit at Rs 64.6 crore against Rs 82.2 crore and revenue was down 11.9% at Rs 1,708.3 crore versus Rs 1,938.3 crore, reported CNBC-TV18.
Abhishek Bansal, Founder Chairman, Abans Group:
Gold prices dropped after the Dow Jones Industrials hit new record highs. Price of Gold and Silver dropped on vaccine optimism, which could allow the global economy to return to normal later next year.
However, gold is likely to receive support from the covid pandemic and dovish central bank policies. Central banks are unlikely to change their accommodative stance in the near to medium term.
Gold prices are likely to find support around $1,844 and $1,812 (200-days EMA). Meanwhile, a critical resistance is seen near $1,931-$2,007 levels. Optimism over a coronavirus vaccine was responsible for a sharp drop in prices, but global economic growth concerns, due to the rising number of covid cases, is likely to keep gold prices supported at lower levels.
Keshav Lahoti Associate Equity Analyst, Angel Broking:
Multiplex stocks PVR, Inox Leisure has corrected ~40% due to disruption brought in the business by Covid-19. Because of fear brought on by the pandemic, people are hesitant to go to theatres to watch movies and the Central Government has also imposed extra restriction on the industry such as occupancy is capped at 50%.
Few state Governments have not given permission for the theatre industry to start their operation. Yesterday with Pfizer's announcing their Covid-19 vaccine is showing signs of 90% effectiveness is positive for the industry. If an effective vaccine comes to the country, the Government will reduce restrictions on occupancy, food & beverages so companies will be able report better revenue and profitability.
With this announcement, there is a possibility of Covid-19 vaccine in the near future, so investors will relook at multiplex stocks from an investment point of view. We are bullish on PVR and Inox Leisure as they are gaining market share and even after Covid-19 disruption yet long term fundamentals are intact for the company.
Market Updates
Benchmark indices are trading at day's high level in the final hour of trading with Nifty above 12600 level.
At 15:00 IST, the Sensex was up 705.27 points or 1.66% at 43302.70, and the Nifty was up 176.70 points or 1.42% at 12637.70. About 1084 shares have advanced, 1424 shares declined, and 135 shares are unchanged.
ICICIdirect on VIP Industries:
The company is well placed in the liquidity position as it has borrowing limits worth Rs 300 crore. While VIP has withdrawn ~ Rs 200 crore, the company has not utilised the same (cash & investments: | 206 crore as on H1FY21). VIP has, over the years, maintained balance sheet prudence with stringent working capital policy, virtually debt free status and healthy RoCE: 30%+.
Owing to its strong balance sheet and being market leader, its business model has the inherent ability to tide over tough market conditions better than peers. Furthermore, strong manufacturing capabilities in Bangladesh (for soft luggage) give VIP an edge over its peers who depend mainly on import. ICICIdirect upgrade the stock from hold to buy with a revised target price of Rs 370 (35x FY23E EPS).
Rupee Updates
Indian rupee is trading lower at 74.20, amid buying seen in the domestic equity market.It opened higher by 8 paise at 74.06 per dollar against previous close of 74.14.
GAIL Q2 result
The company's standalone net profit rose 16.5% YoY at Rs 1,239.7 crore against Rs 1,064.3 crore and revenue was down 24.4% YoY at Rs 13,643 crore against Rs 18,040 crore, reported CNBC-TV18.
European Markets trade flat:
Hindalco Industries Q2:
Standalone net profit at Rs 198 crore against Rs 78 crore (YoY). Standalone revenue was down 4.5 percent at Rs 9,518 crore against Rs 9,965 crore (YoY). Standalone EBITDA was up 7.6 percent at Rs 852 crore against Rs 792 crore (YoY). Standalone EBITDA was at 8.9 percent against 7.9 percent (YoY). One-time gain at Rs 88 crore against loss of Rs 31 crore (YoY).
Exide Industries Q2:
Net Profit was down 3.6 percent at Rs 228.2 crore against Rs 237.3 crore (YoY). Revenue was up 5.5 percent at Rs 2,753.4 crore against Rs 2,610.9 crore (YoY). EBITDA was up 6.7 percent at Rs 392 crore against Rs 367.2 crore (YoY). EBITDA margin stood at 14.2 percent against 14.1 percent (YoY).
Abhishek Bansal, Founder Chairman, Abans Group
: Gold prices dropped after the Dow Jones Industrials hit new record highs. Prices of gold and silver dropped on vaccine optimism, which could allow the global economy to return to normal later next year. However, gold is likely to receive support from the covid pandemic and dovish central bank policies. Central banks are unlikely to change their accommodative stance in the near to medium term.
Gold prices are likely to find support around USD 1,844 and USD 1,812. Meanwhile, critical resistance is seen near USD 1,931-$2,007 levels. Optimism over a coronavirus vaccine was responsible for a sharp drop in prices, but global economic growth concerns, due to the rising number of COVID cases is likely to keep gold prices supported at lower levels.
Alkyl Amines Q2:
Net profit was up 21.5 percent at Rs 65.5 crore against Rs 53.9 crore (YoY). Revenue gained 24 percent at Rs 291.3 crore against Rs 235 crore (YoY). EBITDA jumped 65.1 percent at Rs 95.2 crore against Rs 57.7 crore (YoY). EBITDA margin was at 32.7 percent against 24.6 percent (YoY).
TTK Prestige Q2
: Consolidated net profit was down 18.3 percent at Rs 65.6 crore against Rs 80.3 crore (YoY). Consolidated revenue was up 5.6 percent at Rs 687.9 crore against Rs 651.7 crore (YoY). Consolidated EBITDA gained 6.9 percent at Rs 141.9 crore against Rs 132.8 crore (YoY). Consolidated EBITDA margin was at 20.6 percent against 20.4 percent (YoY).
M&M Q2
Net profit fell 88 percent at Rs 162 crore against Rs 1,354.8 crore (YoY). Profit before exceptional item was up 28 percent at Rs 1.736.4 crore against Rs 1,354.8 crore (YoY). Revenue was up 6 percent at Rs 11,590 crore against Rs 10,935 crore (YoY). EBITDA gained 33.5 percent at Rs 2,057 crore against Rs 1,540.8 crore (YoY). EBITDA margin was at 17.8 percent against 14.1 percent (YoY).
Market Updates
Benchmark indices extended the gains and trading at the day's high with Nifty above 12600.
At 13:07 IST, the Sensex was up 606.68 points or 1.42% at 43204.11, and the Nifty was up 149.90 points or 1.20% at 12610.90. About 1090 shares have advanced, 1310 shares declined, and 128 shares are unchanged.
Motherson Sumi Q2
Company's Q2 net profit declined 12.2% YoY at Rs 337.6 crore against Rs 384.6 crore and revenue was down 2% at Rs 14,957.2 crore versus Rs 15,259.7 crore, reported CNBC-TV18.
Rupee Updates
Indian rupee erased the early gains and trading near the day's low at 74.19, amid buying seen in the domestic equity market.
It opened higher by 8 paise at 74.06 per dollar against previous close of 74.14.
Sriram Iyer, Senior Research Analyst at Reliance Securities:
International gold and silver crashed on Tuesday as news of the first successful late-stage COVID-19 vaccine trials prompted investors to exit from safe-haven bullion and flock to riskier assets. Domestic gold and silver crashed on Monday, tracking overseas prices. International bullion prices started marginally higher on Tuesday morning in Asian trade.
Technically, MCX Gold December plunged more than 5 percent on Monday after forming a long black Bearish Candlestick Engulfing a whole Rising Channel into it which is a sign for Bearish Reversal in the counter. Support is at Rs 49200-48900 levels and Resistance is at Rs 49900-50500 levels.
MCX Silver December on Monday gave a highest single-day fall of more than 7 percent where it has plunged from Rs 66470 levels where it made a low of Rs 60560 levels forming a long Bearish Candlestick indicating a Bearish Reversal once again in the counter.Prices could find Support near Rs 60300-59200 levels & Resistance is at 62600-63500 levels.
Buzzing
Inox Leisure share price added nearly 5 percent on November 10, a day after the company's qualified institutional placement (QIP) opened for subscription.
The duly authorised committee of directors, on November 9, 2020, has approved and authorised the opening of the QIP, from November 9 2020. It has also approved the floor price for the QIP at Rs 263.10 per equity share.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold has risen about 1.50 percent to trade near $1882/oz after a 5 percent decline yesterday. Gold bounced back after taking support near $1850/oz. Supporting gold price is loose monetary policy stance of major central banks and worsening virus situation in Europe and the US. However, weighing on price is progress on the vaccine front, reduced expectations of a large US fiscal stimulus package and mixed ETF activity. Gold may witness choppy trade as market players assess the current worsening virus situation against the prospect of a vaccine.
TCS to acquire Postbank Systems from Deutsche Bank
TCS and Deutsche Bank AG announced an agreement under which TCS will acquire 100 percent of the shares of Postbank Systems AG (PBS) from Deutsche Bank AG, the company reported bourses.
PBS is the full-range captive IT service provider that provides project management, application management and infrastructure support services to Postbank and other subsidiaries of Deutsche Bank. This will further add to TCS’ scale in Germany and strengthen its growth outlook.
NSE to launch first agricultural commodity futures contract next month:
NSE on November 9 said it will launch its first agricultural commodity futures contract for crude degummed soybean oil on December 1. The contract will facilitate the soybean oils processing and allied industries in India and overseas, a perfect hedging tool for managing their price, the National Stock Exchange (NSE) said in a statement.
The contract is a monthly expiry cash settled futures contract with a trading lot size of 10 metric ton (MT) and price basis as Kandla. Vikram Limaye, MD and CEO of NSE, said the exchange is dedicated to deepen the Indian commodity markets by providing convenient and cost-effective onshore hedging products.
Amarjeet Maurya- AVP - Mid Caps, Angel Broking:
During the 2QFY21, VIP Industries (VIL) reported revenue of ~ Rs 108 crore (down ~74% YoY) mainly due to COVID-19. On the EBITDA front, the company has reported loss of Rs 17 crore against profit of Rs 70 crore in 2QFY20 due to higher discounts and lower sales. However, the company has reduced overall expense, which is down by 41% as compared to last year Q2 (Rs 62 crore versus Rs 153 crore in last year Q2). On the bottom-line front, the company has reported loss of Rs 35 crore against profit of Rs 33 crore due to lower sales. Going forward, we expect a gradual recovery in the luggage sector.
Rupee erases gains
Indian rupee erased the early gains and trading flat at 74.15, amid buying seen in the domestic equity market. It opened higher by 8 paise at 74.06 per dollar against previous close of 74.14.
Nifty Pharma Index fell 2 percent dragged by the Cadila Healthcare, Cipla, Lupin:
Market Updates
Benchmark indices extended the gains and trading at day's high level with Sensex first time trading above 43000 level.
At 11:04 IST, the Sensex was up 492.19 points or 1.16% at 43089.62, and the Nifty was up 128.20 points or 1.03% at 12589.20. About 1117 shares have advanced, 1063 shares declined, and 115 shares are unchanged.
ICICIdirect on Dhampur Sugar
: With the process of diversion of sugarcane for ethanol production, Dhampur Sugar would keep its sugar inventory low despite higher sugar production. This would help the company continue to de-leverage its balance sheet. We expect the company to keep dividend payout at ~30 percent. The stock is trading at extremely attractive multiples of 3.7x & 3.3x its FY21E and FY22E earnings respectively. We maintain our buy rating on the stock with the revised target price of Rs 175 per share.
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking
: Gold prices fell 4.64 percent on November 9 and closed at Rs 49,748 levels. Silver prices also fell by 6.86 percent and closed Rs 60,854 levels as the development and optimism on COVID-19 vaccine by Pefizer. However end of uncertainty on US election as Biden won the 46th Presidential election in US this year. However physical demand and investment demand from China and India may support the prices of gold and silver.
Traders can sell gold at Rs 50,100 levels with the stop loss of Rs 50400 levels for the target of Rs 49,100. Sell silver at Rs 61,400 levels, with the stop loss of Rs 62,100 levels and for the target of Rs 59,200. Spot Gold may test USD 1,820 to USD 1,800 per ounce levels while silver may test USD 23 to USD 22.50 per ounce.
SEBI considering revamp of IPO rules on equity dilution: Sources
The Securities and Exchange Board of India (SEBI) is considering a reform of its initial public offer (IPO) regulations, three sources told Moneycontrol. The capital markets regulator may cut down the requirement of 10 percent equity dilution for IPOs that have more than Rs 4,000 crores of post-issue equity capital.
SEBI may reduce the dilution requirement from 10 percent to 5 percent for larger IPOs, the sources said. Currently, if the post-issue capital is more than Rs 4,000 crore, the dilution is10 percent. For less than Rs 4,000 crores of post-issue equity capital, equity dilution required is 25 percent.
Nifty Bank Index added over 2 percent led by the IndusInd Bank, RBL Bank and ICICI Bank:
Rupee Opens
Indian rupee opened higher by 8 paise at 74.06 per dollar on Tuesday against previous close of 74.14, amid buying seen in the domestic equity market.
Pfizer hits 52-week high
Pfizer share price surged over 13 percent on November 10 after the company said that its vaccine data suggests the shots maybe 90 percent effective at preventing COVID-19.
Pfizer says an early peek at its vaccine data suggests the shots maybe 90% effective at preventing COVID-19, indicating the company is on track later this month to file an emergency use application with US regulators.
Nifty IT index shed 3 percent dragged by the Tech Mahindra, Mindtree, Infosys:
Asia Updates
Asian share markets mostly shot higher on Tuesday driven by regional airline, tourism and travel stocks as global investors applauded progress in the development of a coronavirus vaccine which lifted confidence in a world economic recovery.
Gainers and Losers on the BSE Sensex:
Market Opens:
Indian indices opened on positive note on November 10 with Nifty above 12500 on the back of positive global cues.
At 09:16 IST, the Sensex was up 228.11 points or 0.54% at 42,825.54, and the Nifty was up 62.40 points or 0.50% at 12,523.40. About 718 shares have advanced, 294 shares declined, and 48 shares are unchanged.
ICICIdirect:
Indian markets are likely to see a gap up opening tracking a strong rebound in global markets amid positive developments on Coronavirus vaccine. However, global news flows and sector specific developments will be key monitorables. US markets ended mixed tracking positive news flow related to Covid-19 vaccine trials and losses in tech stocks.
Market at pre-open
: Benchmark indices are trading higher in the pre-opening session.
At 09:03 IST, the Sensex was up 132.63 points or 0.31% at 42730.06, and the Nifty was up 121.50 points or 0.98% at 12582.50.
