Closing Bell | Market ends flat amid volatility; realty, power, metals drag, banks gain

Ajit Mishra, VP - Research, Religare Broking

Markets traded lackluster and ended unchanged, in absence of any major trigger. After the initial downtick, the Nifty index oscillated in a narrow range till the end and finally settled at 18,409 levels.

Meanwhile, sectoral indices traded mixed wherein metal, media and realty lost over a percent each. Besides, the prevailing underperformance of the broader indices continues to weigh on the sentiment.

The recent move in the index lacks decisiveness and shows an early sign of exhaustion too however we recommend following the trend until it reverses.

We’re seeing select heavyweights and midcap counters attracting buying interest while the rest are either trading in a range or witnessing pressure. We feel it’s prudent to restrict positions and focus on overnight risk management.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:

Markets moved in a narrow range with bouts of sideways movement in intra-day trades, but selective buying in late trades helped key indices to end in positive territory. The lacklustre trend was visible across the Asian and European markets, which prompted local traders to trade cautiously.

After last week's spectacular rally, investors are in no hurry to lap up stocks despite some tailwinds in the domestic economy.

Technically, the Nifty has formed a small Doji candle on daily charts. The current market texture is non directional and fresh uptrend is possible only after the 18450 breakout level. Above which, the index could hit the level of 18550-18600. On the flip side, dismissal of 18350 could accelerate the selling pressure, which could see the index retest the level of 18250-18200.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty witnessed a tough battle between the bulls & the bears today & ultimately posted a marginal positive close. The volatility is likely to increase going ahead as indicated by the India VIX, which is set for a spike on the upside.

On the higher side, the index once again paused near the rising trendline drawn from the previous key swing highs on the hourly chart.

18450-18500 is the key zone to monitor on the higher side. On the flip side, 18300-18280 is a key support zone, which will decide further course of action for the index.

If the Nifty breaches 18280 on the downside, then the structure will turn in favor of the bears for the short term. The broader end of the market continues to show short term weakness.

Vinod Nair, Head of Research at Geojit Financial Services:

As the domestic market has started to trade around the all-time high levels, it is trending indecisively following the recent geopolitical tensions and weak performance by global counterparts.

Although domestic macroeconomic indicators and FII inflows are favourable, given the high valuations, domestic markets can behave cautious in the short to medium-term.

Rest of the other EMs look more attractive when the global market is attempting to bounce back after a long period of consolidation.

Rupee Close:

Indian rupee ended 20 paise lower at 81.30 per dollar on Wednesday against previous close of 81.10.

Market Close

: Indian benchmark indices ended on flat note in the volatile session on November 16.

At Close, the Sensex was up 107.73 points or 0.17% at 61,980.72, and the Nifty was up 6.30 points or 0.03% at 18,409.70. About 1394 shares have advanced, 2011 shares declined, and 115 shares are unchanged.

Kotak Mahindra Bank, Coal India, HDFC Bank, Dr Reddy's Laboratories and HUL were among the top Nifty gainers, while the biggest losers were Apollo Hospitals, Adani Enterprises, Hindalco Industries, Adani Ports and JSW Steel.

Power, realty and metal indices fell 1 percent each, while some buying was seen in the banking names.

BSE midcap index shed 0.6 percent and smallcap index was down 0.3 percent.

Morgan Stanley keeps Underweight rating on Balkrishna Industries with a target at Rs 1,649 per share

Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services

Gold prices steadied near a three-month peak as signs of cooling U.S. inflation boosted bets for smaller rate hikes, while reports around Russian missiles killing two people in Poland led to some demand for safe-haven assets.

The United States and Western allies said they were investigating but could not confirm a report that a blast in NATO member Poland resulted from stray Russian missiles, while Russia’s defence ministry denied it.

Volatility was a bit high in the yesterday's session as apart from fed officials comments we also had the U.S. PPI and NY state manufacturing index. The U.S. PPI increased 8.0% for the 12 months through October compared with economist expectations for 8.3%. While the NY empire state manufacturing index was positive showing the level of general business conditions improving in NewYork.

After two fed officials hinting a slowdown in the pace of rate hike, Fed official Bostic mentioned that more hikes will be needed to get the inflation down to the Fed's target rate. Focus today will be on the U.S. Retail sales and IIP data. Broader trend on COMEX could be in the range of USD 1740-1800 and on domestic front prices could hover in the range of Rs 52,700-53,400 could be expected.

Citi maintains 'Buy' on Apollo Tyres, target raised to Rs 340 per share

-Buy call, target raised to Rs 340 per share
-Q2FY23 results ahead of estimates; outlook mixed
-Consolidated earnings estimates increased by 5-11% over FY23-25
-India business is steady
-Focus is on market share gains & premiumiation in EU business

Apollo Tyres was quoting at Rs 279.35, down Rs 18.50, or 6.21 percent on the BSE.

Market at 3 PM

Benchmark indices were trading flat amid volatility.

The Sensex was up 110.13 points or 0.18% at 61983.12, and the Nifty was up 1.20 points or 0.01% at 18404.60. About 1252 shares have advanced, 1999 shares declined, and 104 shares are unchanged.

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

Indian Rupee depreciated by 0.43% on risk aversion in global markets weak Asian currencies. Disappointing macroeconomic data from FII outflows also weighed on Rupee.

We expect Rupee to trade with a negative bias on risk aversion in global markets and Dollar demand from importers.

However, weak Dollar and decline in crude oil prices may prevent sharp fall in rupee.

Geopolitical tensions eased somewhat after investigations revealed that the missile which hit Poland was fired from Ukraine and not Russia. Investors may also remain cautious ahead of retail sales and industrial production data from US.

USDINR spot price is expected to trade in a range of Rs 80.50 to Rs 82.50

Sharekhan maintains ‘Buy’ on Ashok Leyland with an unchanged Price Target of Rs 181

-Maintain Buy with an unchanged Price Target of Rs 181

Expect company to benefit from the faster recovery in CV volumes and improved EBITDA margins, led by operating leverage benefits

-The company is well placed in the industry to benefit from increased economic activities related to infrastructure, mining, and e-commerce

The company’s profitability is expected to improve significantly in the medium term, with its EBITDA expected to post an 84.8% CAGR over FY2022-FY2024E

-Investments by investors and strategic partners in its EV subsidiary can lead to value unlocking and re-rating of the stock in the future

Ashok Leyland was quoting at Rs 147.65, down Rs 2.50, or 1.67 percent on the BSE.

Goldman Sachs maintains 'Buy' call on Biocon, target Rs 350 per share

-Buy call, target Rs 350 per share
-Q2 broadly below estimate, from a profitability standpoint
-Sales/EBITDA grew 26%/6% YoY respectively
-Biosimilar sales & research services reported in-line growth
-Believe company is on course to meet earlier FY23 guidance of double-digit topline growth
-Driven by growth across multiple business segments.

Gold slips off 3-month peak as investors reassess Poland risks

Gold prices eased on Wednesday from a three-month peak scaled in the prior session, as U.S. President Joe Biden’s remarks seemed to have calmed investors worried about an explosion in Poland.

Spot gold was down 0.3% at $1,772.95 per ounce, as of 0714 GMT, after hitting its highest since Aug. 15 on Tuesday.

U.S. gold futures were flat at $1,776 per ounce.

Keystone Realtors IPO fully subscribed on final day, retail portion booked 37%

-Keystone Realtors issue has received bids for 1.1 crore shares against an IPO size of 86.47 lakh shares, subscribing 1.28 times on Wednesday.

-High networth individuals bought shares 2.09 times the allotted quota, but retail investors remained undersubscribing, applying for just 37 percent of the reserved portion.

-The part set aside for qualified institutional buyers was subscribed 2.26 times.

Morgan Stanley keeps 'overweight' call on  Apollo Tyres, target Rs 329 per share

-Overweight call, target Rs 329 per share
-Comapny reported a largely in-line Q2FY23
-It continues to grow ahead of market & gaining market share in India & Europe
-Improving margin, FCF & return ratio profile to support rerating.

BSE Midcap index fell 0.4 percent dragged by the SAIL India, Muthoot Finance, Indraprastha Gas

Fitch affirms Bharti Airtel rating at BBB- with stable outlook

Sebi plans to put in place cyber security framework for stock brokers

Sebi is planning to come out with a cyber security framework for stock brokers that will help in reducing the impact of potential risks by cyber fraud, data leaks and hacking of trading accounts, a top official said on Wednesday.

The framework, aimed at protecting stock brokers as well as their clients, would include measures, tools and processes that are intended to prevent cyber-attacks and improve cyber resilience, Association of National Exchanges Members of India (ANMI) President Kamlesh Shah told PTI.

The Securities and Exchange Board of India (Sebi) has set-up a panel that consists of representatives from the regulator, stock exchanges and ANMI, a grouping of stock brokers, for framing the guidelines.

Market update at 2 PM: Sensex is up 126.27 points or 0.20% at 61999.26, and the Nifty added 21.30 points or 0.12% at 18424.70.

Sharekhan retains buy rating on KNR Construction with a revised target of Rs 300

KNR Constructions reported a healthy beat on operational performance for Q2FY2023, aided by sales of pending arbitration claims from JV projects and bonus from a HAM project. Management has retained a Rs 4,000-5,000 crore order inflow target for FY2023. It has largely maintained Rs 3,500 crore standalone revenue guidance and 18-19% OPM for FY2023.

High receivables outstanding in the irrigation segment and pending claims from NHAI maintain status quo. We retain our buy rating on KNR Construction with a revised target of Rs 300, lowering our valuation multiple to factor in elevated receivables and increasing leverage on the standalone balance sheet.

Most active stocks on NSE in terms of volumes

CESC allots NCDs aggregating to Rs 300 crore to Axis Bank on a private placement basis

Committee of the Board of CESC at its meeting held today, has approved the allotment of 3,000 Secured, Unlisted, Redeemable, Rated Non-Convertible Debentures having a face value of Rs 10 lakh each aggregating to Rs 300 crore, on a private placement basis, to Axis Bank Limited.

Keystone Realtors IPO bought 61% on final day, QIB portion subscribed 72%

Keystone Realtors, which runs the real estate brand Rustomjee, had a muted response for its initial public offering even on its final day of bidding on November 16. The issue has received bids for 53.12 lakh shares against an IPO size of 86.47 lakh shares, subscribing 61 percent on Wednesday.

So far, high networth individuals bought shares 1.18 times the allotted quota, but retail investors remained undersubscribing, applying for just 32 percent of the reserved portion.

The part set aside for qualified institutional buyers was subscribed 72 percent.

IIFL Wealth Management completes acquisition of 91% stake in MAVM Angels Network

IIFL Wealth Management has completed acquisition of 91% equity stake in MAVM Angels Network.

In July this year, the company has executed share purchase and shareholders' agreement with MAVM Angels Network (MANPL) and its shareholders to acquire 91% stake. With this, MANPL has become a subsidiary of the company.

IIFL Wealth Management Limited was quoting at Rs 1,774.90, up Rs 8.15, or 0.46 percent on the BSE.

Here are the stocks that have touched their 52 week highs during the day. Click to View More

Zen Technologies incorporates wholly-owned subsidiary in UAE

Zen Technologies has successfully formed a wholly owned subsidiary company namely “Zen Defence Technologies LLC”, a Limited Liability Company formed in the emirate of Abu Dhabi, UAE, on November 15, 2022.

Zen Technologies was quoting at Rs 201.80, up Rs 2.65, or 1.33 percent on the BSE.

Market at 1 PM

Benchmark indices were trading with marginal gains in the afternoon session.

The Sensex was up 89.28 points or 0.14% at 61962.27, and the Nifty was up 7.70 points or 0.04% at 18411.10. About 1472 shares have advanced, 1728 shares declined, and 107 shares are unchanged.

Nifty Information Technology index added 0.5 percent led by the L&T Technology Services, Mphasis, Infosys

UK Data Watch | UK October CPI up 11.1 percent, YoY

Jefferies keeps 'Buy' rating on ABB India, raises target price to Rs 3,775 per share

-Buy Call, target raised to Rs 3,775 per share
-Q3CY22 EBITDA 17% below expectations as revenues disappointed
-Believe this should be comfortably made up in coming quarters
-Order flow rose 42% YoY in 9MCY22 & 38% in 3QCY22
-Margin expanded due to higher capacity utilisation & softening of RM prices
-Data centre, electronics, warehouse & logistics are high growth areas, reported CNBC-TV18.

ABB India was quoting at Rs 3,075.55, up Rs 49.40, or 1.63 percent on the BSE.

Sugar Stocks in focus:

BSE Realty index shed nearly 1 percent dragged by the Sobha, Brigade Enterprises, Oberoi Realty

Nomura View On Apollo Tyres 

-Downgrade to neutral, target Rs 327 per share
-Q2 EBITDA in-line with estimates
-Replacement demand remains slow
-Valuations factoring in commodity tailwinds
-Raise consolidated EBITDA estimates by 4%/2% & EPS by +6%/3% for FY24F/25F, reported CNBC-TV18.

KEC International secures new orders of Rs 1,294 crore across its various businesses

The Transmission & Distribution (T&D) business has secured a large order for supply of towers in Americas, secured by our Brazilian subsidiary, SAE Towers.

The Railways business has secured two orders for Ballastless Track works (BLT) from Chennai Metro and Mumbai Metro in the technologically enabled segment in India.

And its Cables business has secured orders for various types of cables in India and overseas.

Technopack Polymers becomes 407th company to get listed on the BSE SME Platform

Technopack Polymers became the 407th company to get listed on the BSE SME Platform on November 16, 2022.

Technopack Polymers came out with an initial public offering of 14,30,000 Equity Shares of Rs 10 each for cash at a price of Rs 55 Per Equity Share (The “Offer Price”), Aggregating to Rs. 7.87 Crore. The company has successfully completed its public issue on November 07, 2022.

Market at 12 PM

The Sensex was up 43.21 points or 0.07% at 61916.20, and the Nifty was down 5.60 points or 0.03% at 18397.80.About 1512 shares have advanced, 1624 shares declined, and 131 shares are unchanged.

BSE Bank index trades in the green supported by Kotak Mahindra Bank, Bank of Baroda and HDFC Bank

According to Elara Securities' Nifty Q2FY23 review, financials led 59 percentof the incremental positive PAT addition year-on-year. This was driven bystrong performance bybanks on NIM surprise, low credit cost given adequate buffers & recovering loan growth.

Promoter of UPL acquires additional 0.19% stake in the company:

Kotak Mahindra Bank share price rises 2 percent and is the top gainer on the BSE Sensex and Nifty50:

The bank has hiked lending rates by 10-15 bps across tenures, reported CNBC-TV18.

The stock is in focus as Jay Kotak son of Uday Kotak isn’t in the running to lead Kotak Mahindra Bank Ltd., as the lender looks to appoint a chief executive officer within the next six months to replace its billionaire founder.

Jay Kotak, son of founder Uday Kotak who has led the business since establishing it in 1985, is not a contender for the role, according to KVS Manian, the firm’s whole-time director. The billionaire will transition from his chief executive position by the end of next year, after central bank guidelines capped tenures for Indian business heads.

Credit Suisse downgrades NMDC to underperform, cut target to Rs 100 per share

-Downgrade to underperform, target cut to Rs 100 per share

-Q2FY23 miss on lower realisations; lack of catalysts ahead

-Lower the price & volume estimates & FY23/24 EPS falls 15/13%

-Now value NMDC at 4.5x FY24 EBITDA

NMDC was quoting at Rs 109.15, up Rs 0.15, or 0.14 percent on the BSE.

TAP Air Portugal selects TCS as a partner to establish a new airline digital center

TAP Air Portugal, the flag carrier airline of Portugal, selected TCS as a strategic partner, to accelerate its digital transformation and drive innovation. The company will establish an Airline Digital Center (ADC) in Portugal, staffed with consultants with deep domain knowledge of the airline industry, solution architects and technology experts.

Tata Consultancy Services was quoting at Rs 3,364.30, up Rs 31.65, or 0.95 percent on the BSE.

Jefferies on Biocon

-Buy call, target at Rs 334 per share
-Revenue in-line, but EBITDA 4 percent below estimate on higher R&D expenses & staff costs
-Hiring in BioconBiologics increased employee expense
-Post-deal result & US FDA nod for Bangalore & Malaysia facilities remain key trigger

Zydus Life gets exclusive marketing rights for CanAssist, a test for breast cancer patients

-Brings in 95% precision in gauging whether hormone positive breast cancer patients need chemotherapy or not
-Will benefit patients and clinicians pan India with a highly accurate and an evidence based approach for breast cancer treatment
-Patented product of OncoStem, a research based startup headquartered in Bengaluru

L&T Infotech | Corporate Affairs Ministry approves change in name to LTIMindtree

The merger of L&T Infotech (LTI) with Mindtree has made it the country's fifth-largest IT provider by market capitalisation and sixth-largest by revenue. The combined, however, is unlikely to make it to Nifty 50 in March 2023 review, contrary to market chatter. Read more

Bharat Rasayan Q2FY23 (YoY)

Nifty hits fresh 52-week high of 18,438

"Cooling US inflation, sluggish crude oil price, expectations of the slow pace of rate hikes by the US Fed, and hopes of easing coronavirus restrictions by China could further boost investors' confidence. The positive takeaway is that the final stretch of the year-end rally should lift Nifty to even above the psychological 19,000 mark" according toPrashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities Ltd.

Sensex hits 62,000

At 10:56 am, the Sensex is up 129.89 points or 0.21 percent at 62,002. Nifty is up 25.90 points or 0.14 percentat 18,429.30. About 1584 shares have advanced, 1465 shares declined, and 128 shares are unchanged.

CLSA on PB Fintech

-Initiate Buy call, target at Rs 600 per share
-Expect >10 percentCAGR in broader insurance industry over 15 years
-Company is key beneficiary of growing share of online insurance distribution
-Expect a core revenue CAGR of 37 percentover FY22-26
-Contribution margin should expand from 24 percentin FY22 to 32 percentby FY26
-Expect breakeven by H2FY24

Motherson Sumi Wiring trades ex-bonus, hits 52-week high