Rohan Mehta, CEO and Fund Manager, Turtle Wealth
"Turnaround businesses as the best investment ideas to create wealth. Companies that haven't been doing well for past few years but due to some fundamental or structural change, are expected to start performing well; those are the turnaround companies one should look at," Mehta said at the PMSBazaar's Alternative Investment Summit.
Vinod Nair, Head of Research at Geojit Financial Services
Domestic market is now focusing on global trend for future direction due to lack of domestic triggers. Negative vibes in developed market and aggressive comment from Fed officials have shaken the ongoing optimistic trend across the globe. Despite a late attempt of recovery, the domestic market largely traded with a negative shade, in all sectors except PSU banks.
Kunal Shah, Senior Technical Analyst at LKP Securities:
The Bank Nift index witnessed a volatile trading session where the first half was controlled by the bears and in the closing hours, bulls came back to hold the support. The bulls in order to gain back the momentum will have to take the index above 42,600-42,700 levels from where the uptrend will resume.
The bears will watch for 42,000 on the downside if breached and will get an upper hand on the index which will drag it further down toward the 41,500 level.
Ajit Mishra, VP - Research, Religare Broking:
Markets traded volatile and ended marginally lower, in continuation to the prevailing consolidation phase. After the flat start, the Nifty index gradually inched lower as the session progressed however recovery in the final hours pared the losses significantly. It finally settled at 18307 levels; down by 0.2%.
All the sectoral indices, barring PSU banking, traded in tandem and ended lower.
Markets are indicating the prevailing consolidation to continue and Nifty should decisively cross 18,450 levels to regain strength. Meanwhile, we reiterate our view to focus more on sector/stock selection citing restricted participation. Besides, we’re observing breakout failures across sectors, so maintain strict risk management rules also in place.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty witnessed muted action in the week gone by & ultimately posted a negative weekly close after four consecutive positive weeks.
The short term momentum indicators have been showing negative divergence, which is a sign of weakness & the price action is expected to follow the suit.
Going ahead, the Nifty is expected to tumble towards 18100-18000 in the short term. On the higher side, 18450 has been acting as a resistance for the index & will continue to act as a cap for the short term.
The broader end of the market is expected to see deeper cut in the short term.
Rupee Close:
Indian rupee closed marginally lower at 81.68 per dollar against previous close of 81.64.
Market Close:
Indian benchmark indices ended lower in the volatile session on November 18.
At Close, the Sensex was down 87.12 points or 0.14% at 61,663.48, and the Nifty was down 36.20 points or 0.20% at 18,307.70. About 1424 shares have advanced, 1966 shares declined, and 119 shares are unchanged.
HCL Technologies, HUL, Asian Paints, SBI and Kotak Mahindra Bank were among the top Nifty gainers, while the biggest losers were M&M, Bajaj Auto, Cipla, IndusInd Bank and Maruti Suzuki.
Except Realty and PSU Bank, all other sectoral indices ended in the red.
The BSE midcap and the smallcap indices down 0.4 percent.
Morgan Stanley keeps 'Overweight' rating On Indian Hotels, target Rs 381
-Overweight call, target Rs 381 per share
-Demand momentum remains strong
-G20 summit in India & wedding season should support demand in Q3
-Supply growth is likely to remain slower than demand growth
-Supply growth would support a revenue PAR upcycle
-Management sees its upper midscale hotel brand, Ginger, as next driver of growth
PMS stalwarts speak:
Anil Rego, Founder and CEO, Right Horizons said even while one is multiplying their money, they need to manage their risk well. The art of multiplying wealth is looking at stocks, their potential growth among other factors, he added at PMSBazaar's Alternative Investment Summit.
Surjit Singh Arora, Portfolio Manager and Principal Officer at PGIM India PMS, believes industrials will do well going ahead. Besides industrials, Arora also likes retail and automobile companies considering the consumption is improving.
Gainers and losers on the BSE Sensex
Nomura keeps Buy rating on Exide Industries, target Rs 221
-Buy call, target raised to Rs 221 per share
-Q2 results in-line with estimates
-Steady growth to continue; plans to invest Rs 6,000 crore in lithium-ion plant
-Raise FY23 revenue estimates by 10% to factor in higher H1FY23 run-rate
-Valuations attractive at 15.1x FY25 core EPS
Exide Industries touched a 52-week high of Rs 188 and quoting at Rs 184.45, down Rs 2.25, or 1.21 percent.
Here are the most active stocks traded during the day on value based; click to view full list
Morgan Stanley 'Overweight' call on Interglobe Aviation with target Rs 2,749 per share
-Overweight call, target Rs 2,749 per share
-Management highlighted that yields in Q3FY23 to date are well above Q1 levels
-Domestic traffic is back to pre-covid levels
-Management believes that international travel will be next leg of growth
-No change in the ASKM outlook but Q3 will face cost impact
Nifty Energy index fell 0.7 percent dragged by the ONGC, NTPC, Adani Green
Saurabh Mukherjea, Marcellus Investment Managers
With consolidation in the economy, a strong company is going to get stronger in every sector, said Saurabh Mukherjea, Founder and Chief Investment Officer of Marcellus Investment Managers, at PMSBazaar's Alternative Investment Summit. He believes that wealth creation in India over a long period of time will come from these strong companies.
Benchmark indices erased some of the intraday losses but still trading lower with Nifty below 18300
The Sensex was down 228.11 points or 0.37 percentat 61,522. Nifty was down 77.40 points or 0.42 percentat 18,266.50. About 1188 shares have advanced, 2039 shares declined, and 107 shares are unchanged.
Shahzad Madon, Head, Alternate Assets, Nippon Asset Management
India's long term story is intact, said Shahzad Madon, Head, Alternate Assets, Nippon Asset Management. With the valuations being a little expensive, one has to be careful about investing but the long term story of India is still intact and it is favourably placed in the Emerging Market basket, he said at PMSBazaar's Alternative Investment Summit.
Here are the stocks that have seen a huge spurt in its share price over the last three days: Click to View More
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Equity market in India posted negative returns this week, with majority of indices posting decline. With Q2FY23 earnings season behind, the market focus now completely shifts towards domestic and global macro factors.
October CPI inflation fell to 6.77% due to favorable base effect. Domestic inflation is expected to moderate gradually.
In the US, comments from Federal Reserve speakers hinted at further interest rate hikes to come. Post witnessing some decline earlier this week, the US 10-year treasury yield moved higher on Thursday. While the crude oil prices corrected this week.
Morgan Stanley keeps 'Overweight' call on Axis Bank, target Rs 1,150 per share
-Kept Overweight call, target Rs 1,150 per share
-Loan demand is holding up well
-Bank expects sustained market share gains, particularly in high margin segments
-Margin expansion has an upside leg over near term
-Deposit cost should catch up starting in Q4FY23
-No asset quality concerns as of now
-Assess that credit cost could remain at below-cycle averages in near term
-Reiterated that cost to assets will moderate to 2% by FY25
Axis Bank was quoting at Rs 857.35, down Rs 0.15, or 0.02 percent.
Alert: Axis Bank hikes lending rates by 10 basis points across tenures with effect from Nov 18, 2022
Jio True 5G Becomes First To Provide Coverage Across Delhi-NCR Areas
As per a press release issued by Reliace Jio, it is now the only operator to provide True-5G services across Delhi-NCR region, including Delhi, Gurugram, Noida, Ghaziabad, Faridabad and other major locations. It is rolling out the most-advanced True-5G network at a rapid pace, covering major parts of this geography.
(Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)
Bharat Electronics in focus
-Signed a MoU with IITM Pravartak Technologies Foundation for co-operation in the field of Distributed Acoustic Sensing
-Signed an LAToT with DRDO labs DRDL, Hyderabad, and IRDE, Dehradun, for the manufacture of Laser Based End Game Fuze (LBEGF)
-Signed an LAToT with the Research and Development Establishment (Engineers), Pune, a DRDO lab, for the manufacturing and integration of Unexploded Ordnance Handling Robot
Nifty Pharma index declined 0.5 percent dragged by the Glenmark Pharma, Laurus Lab, Lupin
Q2 was amuted quarter for the pharma sector given the high base of the year-ago quarter, which was boosted by the sales of COVID-19 linked treatment drugs. Export performance was decent for most pharmaceutical companies aided by new launches in the US market, which helped partially offset rising price pressure in the same market. Sun Pharmaceutical emerged as the biggest outperforming in the sector aided by ramp-up in sales of its specialty drug products in the US market.
Markets At 2 PM
Sensex is down 392.52 points or 0.64 percentat 61,358.Nifty is down 123.70 points or 0.67 percentat 18,220. About 1183 shares have advanced, 2016 shares declined, and 111 shares are unchanged.
ICE Make Q2FY23
Ice Make Refrigeration, a leading supplier of innovative cooling solutions and manufacturer of 50 plus refrigeration equipment in India, has reported 245.3 percent growth in its net profit and 40.14 percentgrowth in its revenue for the quarter ended on 30 September 2022.
Chandrakant Patel, CMD of the company said, “Strong demand continued to help deliver robust growth in revenue and profitability jumped significantly in the reporting period of Q2FY23 due to higher scale and cost controls. During the quarter finance cost recorded a steep 56.7 percent drop on a YoY basis to Rs 17.8 lakh while lower operating and fixed cost boosted profits.”
Dealing Room Chatter:
Buying fatigue around the 18,000 and 18,500 level as the gap begins to fill. Devoid of any story, markets appear to be running on fumes.
Buying flows from high networth individuals being witnessed in Unichem Laboratories and Ircon International due to favourable risk-return profile of the two counters.
Muthoot Capital Services CFO Vinodkumar Madhavan Panicker resigns
The board of directors of Muthoot Capital Services in their meeting held on November 18, 2022, accepted the resignation of Mr. Vinodkumar Madhavan Panicker, Chief Finance Officer, who had submitted his resignation citing personal reasons.
The resignation is effective from the closing hours of December 05, 2022.
Muthoot Capital Services was quoting at Rs 285.05, down Rs 3.70, or 1.28 percent on the BSE.
BSE Realty index shed 1 percent dragged by the Prestige Estate, Godrej Properties, Sobha
Rama Steel Tubes board approves bonus issue of 4 shares for every 1 share held
The board of Rama Steel Tubes at its meeting held November 18, 2022, has considered and approved:
1. Issue of 4 bonus equity shares for every 1 fully paid-up equity share
2. Increase in authorised share capital from Rs 11,50,00,000 to Rs 55,00,00,000
3. Alteration in Capital Clause of Memorandum of Association.
Morgan Stanley keeps 'Overweight' rating on Apollo Tyres with a target Rs 329 per share:
-Kept 'Overweight' rating with a target Rs 329 per share
-European business continue to gain market share
-Growth in India has mainly been led by pricing as volumes are flat
-Company aims to remain as the pricing leader
-Stable pricing & declining commodity costs likely to provide margin tailwinds in Q3FY23
-From current 7% levels, management targets 12-15% RoCE
Redington joins hands with Enertech to offer solar hybrid solutions in India
Redington announced its partnership with Enertech, a solar inverter manufacturing company, to fulfill the rising demand for solar hybrid inverters in India.
This partnership will leverage Enertech’s expertise in solar solutions manufacturing and Redington’s dense distribution network across the country, to maximize sales and after-sales service of Solar Hybrid Inverters, as per the press release.
Morgan Stanley keeps 'Overweight' rating on PB Fintech with target Rs 620 per share
-Kept 'Overweight' call, target Rs 620 per share
-Company reiterated its profit guidance of Rs 1,000 crore for FY27
-Company sees adjusted EBITDA to break-even in Q4FY23
-Management highlighted its cash losses are already near zero
-Company does not have plans to set up any other businesses or international operation
Market at 1 PM
The Sensex was down 311.99 points or 0.51% at 61438.61, and the Nifty was down 94.60 points or 0.52% at 18249.30. About 1241 shares have advanced, 1912 shares declined, and 125 shares are unchanged.
Som Distilleries and Breweries Board approves:
Allotment of 25,00,000 equity shares of Rs 5 each of the company, fully paid-up, pursuant to the conversion of preferential warrants into equity, to the Mr. Jagdish Kumar Arora and Mr. Deepak Arora, Promoters allottees.
Considered and declared 1st Interim Dividend for the Financial Year 2022-23 at the rate of 5% i.e. Rs 0.25 per share on equity shares having face value of Rs 5 per share, as on the Record date.
Approved to change in name of the company from ‘Som Distilleries and Breweries Limited’ To ‘Som Distilleries Breweries & Wineries
Limited’
Som Distilleries and Breweries was quoting at Rs 118.75, down Rs 2.30, or 1.90 percent.
Strides Pharma gets USFDA nod for Potassium Chloride Oral Solution
Strides Pharma Science's step-down wholly owned subsidiary, Strides Pharma Global Pte. Limited, Singapore, has received approval for Potassium Chloride Oral Solution USP, 40 mEq/15mL (20%) from the United States Food & Drug Administration (USFDA).
The product is bioequivalent and therapeutically equivalent to the Reference Listed Drug (RLD), Potassium Chloride Oral Solution USP, 40 mEq/15 mL (20%) of Genus Lifesciences Inc.
Jio 5G now available across Delhi & NCR region
Jio is now the only operator to provide True-5G services across entire Delhi-NCR region, including Delhi, Gurugram, Noida, Ghaziabad, Faridabad and other major locations.
Jio is rolling out the most-advanced True-5G network at a rapid pace, now covers major parts of this geography, Reliance Industries said in its press release.
Reliance Industries was quoting at Rs 2,583.45, down Rs 17.85, or 0.69 percent.
Airtel launches 5G Plus services at Varanasi airport
Bharti Airtel today announced the deployment of its cutting-edge Airtel 5G Plus service at the Lal Bahadur Shastri International Airport, Varanasi, making it the first airport in the state to enjoy ultrafast 5G service. The new terminal in Bengaluru and Pune are the other two airports that have Airtel 5G Plus, company said in its release.
Click to View More
Here are the stocks that locked on the lower circuit or have only sellers in the stocks;
Eicher Motors approves appointment of Vidhya Srinivasan as CFO
Eicher Motors has informed that Ms. Vidhya Srinivasan has been appointed as the Chief Financial Officer and a Key Managerial Personnel of Eicher Motors Limited w.e.f. November 18, 2022
Eicher Motors was quoting at Rs 3,399.15, down Rs 44.65, or 1.30 percent.
Polycab Large Trade | 16.13 lakh shares (1.1% equity) worth Rs 406.6 crore change hands at an average Rs 2,520 per share
Mahindra Lifespace Developers launches residential project in Pune
Mahindra Lifespace Developers has launched its residential project - Mahindra Citadel Phase 1, at Pimpri Chinchwad, Pune.
Mahindra Lifespace Developers was quoting at Rs 390.05, down Rs 6.90, or 1.74 percent.
CLSA keeps 'underperform' call on Info Edge, target cut to Rs 4,100 per share
-Kept underperform call, target cut to Rs 4,100 per share
-Steady execution but normalisation in IT demand is a dampener
-Demand undercurrents are strong in real estate & education business
-Its new marketing strategy is helping drive traffic in matrimony business
-These businesses remain in investment mode
-Management emphasised its preference for market share gains over profitability
BSE Midcap index fell 0.5 percent dragged by the Glenmark Pharma, Delhivery, CG Power
Small-cap and midcap companies are finding it tougher to service debt than their larger rivals amid higher inflation and continued interest rate increases, indicating that their recovery is unlikely to improve soon.
The interest coverage ratio declined more sharply for small-cap and midcap companies than for BSE 500 companies, both sequentially and from a year ago, according to an analysis by Moneycontrol. A lower interest coverage ratio (ICR) indicates a higher debt burden. Read more
Madanagopal Ramu of Sundaram Alternates at PMS-AIF event
Inflation and interest rates will not remain at elevated levels for a very long time, said Madanagopal Ramu, Head – Equity and Fund Manager, Sundaram Alternates at PMS Bazaar's annual summit.
He believes structurally when the economy grows, inflation along with interest rates trends lower.
He said that one has to look beyond and the last 40 years the trend has been lower rates.
Market at 12 PM
The Sensex was down 354.29 points or 0.57% at 61,396.31, and the Nifty was down 112.10 points or 0.61% at 18,231.80. About 1231 shares have advanced, 1861 shares declined, and 140 shares are unchanged.
BSE Capital goods index fell 0.6 percent dragged by the Praj Industries, Bharat Electronics, Hindustan Aeronautics
Alstone Textiles share price locked at upper circuit, fixes Dec 14 as record date for split
Paschim Finance and Chit Fund sold further 1.15 lakh shares in Alstone Textiles (India) at an average price of Rs 286.15 per share, and Victory Software also offloaded further 85,000 shares at an average price of Rs 286.1 per share.
Meanwhile, the company has fixed December 14 as a record date for sub-division of equity shares. The company said each share will stand sub-divided into 10 shares of nominal value of Re 1 each fully paid-up and will ascertain the eligibility of shareholders entitled for issuance of bonus equity shares in the proportion of 9 shares of Re 1 each for every 1 existing share of Re 1 each.
Goldman Sachs maintains sell rating on Sun Pharma, target Rs 830 per share
-Sell call, target Rs 830 per share
-Expect growth momentum to continue
-Specialty revenue led by market share gains & new product ramp up to aid growth
-New products launches in India business & improvement in MR productivity to aid growth
-Company expects R&D costs to inch higher as patient enrollments for its clinical trials pick up
Sun Pharmaceutical Industries was quoting at Rs 1,011.50, down Rs 0.95, or 0.09 percent on the BSE.
Ravindra Rao, CMT, EPAT VP-Head Commodity Research, Kotak Securities
COMEX Gold trades near $1766 after a 0.72% fall in yesterday’s session. Gold’s rally took a pause mid-week as geopolitical premium that was built after a missile fell in Polish territory diminished after Poland President's statement.
The recent rally in gold was mainly due to expectation that Fed would slow down the rate hike in their upcoming meeting after data showing inflation cooled in October. However, in the last few sessions various Fed governors seemed hawkish that has supported the US dollar. Although some more correction can’t be ruled out, the undertone in gold still remains bullish as the probability of a smaller rate hike by Fed in the upcoming meeting is still more than 80%.
On the price front, as mentioned in our previous report gold failed in breaking the $1780/oz resistance on closing. Support now is pegged near $1740/oz which should hold and price might trade between $1740-$1780. Break on either side might give direction.
