Shrikant chouhan, Head of equity research (retail), Kotak Securities:
The benchmark indices held the positive momentum, the nifty ends 50 points higher while the Sensex was up by 211 points. Among sectors, Oil and Gas and Energy indices rallied most whereas Metal stocks corrected sharply as a result Metal index shed over 1 percent.
On the backdrop of weak market conditions our market opened with a red but after early morning correction it bounce back sharply. Higher bottom formation on intraday charts indicating continuation of uptrend in the near future.
For the trend following traders now 18,400-18,350/62,200-62,000 would be the sacrosanct support zones. Above which the index may hit the fresh all time high or 18,605-18,650/62,750-63,000. On the flip side, below 18,350/62,000 uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions.
Ajit Mishra, VP - Technical Research, Religare Broking
Markets extended the prevailing trend and posted modest gains amid mixed cues. Weakness in the global markets triggered a weak start however the Nifty index recovered in no time and inched gradually higher as the session progressed. It finally made a new record high but profit taking in the last hour trimmed the gains. Consequently, it closed 18,562.70 levels; up by 0.3%. Meanwhile, the sectoral indices traded mixed wherein energy and auto were the top gainers while metal, IT and banking traded subdued.
We may see some consolidation in markets amid mixed global cues however the bias would remain on the positive side. Participants should utilise the phase to add quality names, especially from banking, IT and auto space. Besides, they may consider selective bets from the midcap and smallcap citing the recent participation.
Mohit Nigam, Fund Manager & Head - PMS, Hem Securities:
Benchmark Indices ended on a positive note after Nifty 50 scaled an all-time high of 18,614.25 in spot markets. Nifty 50 closed +0.27% and Sensex closed +0.34% up today.
Good buying was witnessed in Tyres, Auto and Defence counters while the Bank Nifty saw some profit taking. Oil marketing companies showed gains on account of fall in crude prices. BPCL and Reliance were top gainers while Hindalco and JSW Steel were top losers in Nifty 50 today.
Overall domestic markets are moving from strength to strength amid global macro concerns and we believe that Indian markets can continue to outperform global indices backed by strong corporate earnings and healthy demand. Currently IT, Auto and banking sector look well poised to us.
On the technical front, immediate support and resistance in Nifty50 are 18,450 and 18,650 respectively. Immediate support and resistance in Bank Nifty are 42,500 and 43,350 respectively.
Vinod Nair, Head of Research at Geojit Financial Services.
Despite unfavourable global cues, the domestic market reversed its early losses to trade at record highs. Following the decline in oil prices, oil & gas stocks led the rally in anticipation of margin gains, as ongoing protests in China fuelled demand concerns.
Going ahead, global markets will depend on Powell’s speech on Wednesday, which is crucial in maintaining the momentum, as the market seems to have factored in a moderation in the pace of rate hike.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty opened gap down today, only to attract buying support at lower levels. The index opened right into the support zone of the key hourly moving averages from where the index recovered swiftly.
It went on to cross the all-time high of 18,604 & registered a new high of 18,614.
Structurally, the index is forming extension on the upside. Thus the zone of 18,400-18,360 will continue to act as a crucial support area.
As long as the index stays above this zone, it can stay on the upward trajectory from a short term perspective. Subsequent targets on the upside will be 18,700 & 19,000.
Lakshmi Iyer, CEO- Investment Advisory, Kotak Investment Advisors
Sentiment and flows currently are acting as a strong catalyst for the markets which touched an all-time high. We are seeing domestic as also foreign investors being net buyers of equity aiding the momentum.
Here on one needs to be balanced as most of the positives are in the prices for now. Incremental allocations to equities could be done in a staggered manner as opposed to lump sum investments.
Hemant Kanawala, Executive Vice President & Head Equity, Kotak Mahindra Life Insurance Company
Although markets have touched new highs, the valuations have normalized over past one year as earnings have rolled forward. The prospects for Indian markets remain bright over medium term as structural growth drivers for Indian economy are intact and India’s macroeconomic parameters remain resilient against challenges in the global economy.
Meanwhile, equity investors should remain invested and increase equity allocation on correction.
Srikanth Subramanian, CEO, Kotak Cherry
Indian markets are defying global weakness and touching all-time high. This is on back of renewed interest from FIIs as Indian decoupling story continues to play out. However, one must also realize that as we continue to see better growth rates than world, our valuations too are priced at those premiums.
Even long term investors at this point should not betray discipline. One should ideally avoid any extreme movements and stick to the core asset allocation that one has defined for oneself.
Pankaj Pandey, Head – Research, ICICIdirect:
Nifty at life time high is a function of multiple factors such as resilient corporate earnings in Q2FY23, robust GST numbers (at 6 months high in October, 2022) and retail inflation slowing to a three-month low in October, 2022 at 6.77%, led by softening food and commodity prices.
Globally, US has also found comfort in its recently released lower than expected inflation readings with growing expectations of a decline in pace of interest rate hikes by Fed, amid already existing growth concerns.
Furthermore, with ~20% decline in crude prices in the last fortnight, further relief is likely in inflation, going ahead. We continue to remain constructive on the Indian equities. Over FY22-24E, Nifty earnings are seen growing at a CAGR of ~15%. Our 12- month forward Nifty target is at 20,000 (i.e. 21x PE on FY24E) with corresponding Sensex target of 66,600.
As structural bets, we like the banking space, capex linked capital goods, domestic consumption plays including autos.
Rupee Close:
Indian rupee closed flat at 81.66 per dollar against previous close of 81.68.
Market Close:
Indian benchmark indices ended on positive note on November 28 with Sensex, Nifty finishing at record closing levels.
At Close, the Sensex was up 211.16 points or 0.34% at 62,504.80, and the Nifty was up 50 points or 0.27% at 18,562.80. About 2024 shares have advanced, 1458 shares declined, and 185 shares are unchanged.
BPCL, Reliance Industries, Hero MotoCorp, Tata Consumer Products and SBI Life Insurance were among the top Nifty gainers, while losers included Hindalco Industries, JSW Steel, Apollo Hospitals, Tata Steel and Bharti Airtel.
Except metal, all other sectoral indices ended in the green with oil & gas up 1.5 percent.
BSE Midcap and Smallcap indices added 0.7 percent each.
Macquarie initiates with underperform rating on Container Corporation of India
-Initiate with underperform rating, target at Rs 620 per share
-Delayed completion of freight corridor to JNPT will impact volume growth
-Market share loss & pricing pressures would offset DFC gains in near term
-Divestment of government’s stake will be key catalyst
Container Corporation of India was quoting at Rs 764.85, up Rs 2.40, or 0.31 percent.
Arvind SmartSpaces sells entire 1st phase of Arvind Greatlands in 10 hours
Arvind SmartSpaces announced that it’s 100% wholly owned subsidiary Arvind Homes Pvt. Ltd. sold the entire 1st phase of its residential plotting project, Arvind Greatlands in Devanahalli, Bengaluru on November 26, 2022.
The first phase, comprising of 400 plots with a saleable area of ~0.57 million sq. ft. amounting to a booking value of more than Rs 200 crore, was sold out in 10 hours, it said.
Dharmaj Crop Guard IPO fully subscribed on day 1
Agrochemical company Dharmaj Crop Guard has received bids of 82.77 lakh shares for its initial public offering against an issue size of 80.12 lakh shares, resulting into a 1.03 times percent subscription, on November 28, the first day of bidding.
Retail investors are at the forefront, putting in bids for 1.60times of the shares allotted to the them.
Employees have bid for 79 percent as against 55,000 reserved shares. They will get shares at a discount of Rs 10 a share to the final offer price.
Qualified institutional buyers (QIB) have bid for 34 percent of the 22.43 lakh shares allotted to them while Non Institutional Investors (NIIS) have bid for 63 percent of the 17.14 lakh shares allotted to them.
Nifty scales all-time high: What could be the next target for the flagship index?
This new high comes at a time when other major stock markets in the world are nowhere close to their peak... Read More
Citi resumes coverage on L&T with buy call and target at Rs 2,465
-Resume coverage with Buy call, target at Rs 2,465 per share
-Well-positioned to capitalise on capex growth in India & West Asia
-Focus on new high-tech manufacturing, improving RoEs & ESG bode well
-Stabilisation of commodity prices bodes well for FY24/FY25 margin
-Valuations appear reasonable given prospects of capex growth
Larsen & Toubro was quoting at Rs 2,065.00, up Rs 2.70, or 0.13 percent on the BSE.
SR Technics partners with HCL Tech to digitally transform business operations
HCL Technologies has signed a multi-year contract with SR Technics, a leading maintenance, repair and overhaul (MRO) service provider in the civil aviation industry, to digitally transform SR Technics’ operations.
HCL Technologies was quoting at Rs 1,121.50, down Rs 6.35, or 0.56 percent on the BSE.
Market at 3 PM
The Sensex was up 301.19 points or 0.48% at 62,594.83, and the Nifty was up 74 points or 0.40% at 18,586.80. About 1949 shares have advanced, 1388 shares declined, and 158 shares are unchanged.
Dharmaj Crop Guard IPO subscription update
Agrochemical company Dharmaj Crop Guard has received bids of 76.57 lakh shares for its initial public offering against an issue size of 80.12 lakh shares, resulting into a 96 percent subscription, on November 28, the first day of bidding.
Retail investors are at the forefront, putting in bids for 1.46 times of the shares allotted to the them.
Employees have bid for 72 percent as against 55,000 reserved shares. They will get shares at a discount of Rs 10 a share to the final offer price.
Qualified institutional buyers (QIB) have bid for 34 percent of the 22.43 lakh shares allotted to them while Non Institutional Investors (NIIS) have bid for 58 percent of the 17.14 lakh shares allotted to them.
Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company
The markets touched all-time high thanks to the systematic investment plan (SIP) flows. Investors should maintain their asset allocation and SIP investment with long term outlook. Near term volatility should not deter investors from following their asset allocation.
Life insurers get wiggle room on spends, but don’t expect commissions to surge
The new EoM rules, and the bunch of relaxations on capital and distribution tie-ups that IRDA has announced, should explain the surge in the shares of listed life insurers.... Read More
Garnules India India CFO Sandip Neogi resigns
Granules India informed that Mr. Sandip Neogi, Chief Financial Officer (CFO) of the company has tendered his resignation to pursue other opportunities and will be relieved from his services effective close of business hours on December 14, 2022.
Nomura maintains 'Buy' rating on VA Tech Wabag, target raised to Rs 480
-Buy call, target raised to Rs 480 per share
-Focus on profitability and cash flows
-Focus on E&P projects & tying up long-term WC funding supports growth
-Increase FY24/25 EBITDA estimates by 1 percent/4 percent as Russian project resumes
-Securing long-term ADB working capital funding a key positive
Voltas large trade | 4.53 lakh shares (0.14% equity) worth Rs 38.01 crore change hands at an average of Rs 838.50 per share
India’s bank credit to expand by around 13% in FY23, says Fitch Ratings
The acceleration will be driven by the normalisation of economic activity after the COVID-19 pandemic, and high nominal GDP growth, which it expects will boost demand for retail and working-capital loans.... Read More
European Markets Updates
Morgan Stanley's Sensex target for December 2023
Base case: 68,500
Assumptions:
-Effects of the Ukraine-Russia conflict do not spill over into 2023
-Domestic growth continues its strong path
-US does not slip into a protracted recession
-RBI executes a calibrated exit
-Sensex earnings compound 22% annually through F2025E
Bull case: 80,000
Assumptions:
-India is included in the global bond indices, resulting in nearly $20 billion of inflows over the subsequent 12 months
-Commodity prices including oil and fertilizer correct sharply
-Earnings growth compounds 25% annually over F2022-25E
Bear case: 52,000
Assumptions:
-Oil and other relevant commodity prices remain elevated
-RBI ends up tightening aggressively to protect macro stability
-A protracted recession in the developed world drags down India’s growth
-Sensex earnings compound 18% annually over F2022-25E, but equity multiples de-rate
Mark Mobius sees Bitcoin down at $10,000 in ‘dangerous’ crypto market
The crypto rout has room to run, according to veteran fund manager Mark Mobius, according to a Bloomberg report. The co-founder of Mobius Capital Partners LLP said in an interview on Monday in Singapore that his next target for Bitcoin is $10,000. He added he wouldn’t invest his own cash or client money in digital assets as “it’s too dangerous.”
“But crypto is here to stay as there are several investors who still have faith in it,” said Mobius, who spent more than three decades at Franklin Templeton Investments. “It’s amazing how Bitcoin prices have held up” despite the FTX fallout, he added.
Reliance Industries stock hits five month high
Dharmaj Crop Guard IPO updates
Agrochemical company Dharmaj Crop Guard has received bids of 71.05 lakh shares for its initial public offering against an issue size of 80.12 lakh shares, resulting into a 89 percent subscription, on November 28, the first day of bidding.
Retail investors are at the forefront, putting in bids for 1.34 times of the shares allotted to the them. Employees have bid for 68 percent as against 55,000 reserved shares. They will get shares at a discount of Rs 10 a share to the final offer price.
Qualified institutional buyers (QIB) have bid for 34 percent of the 22.43 lakh shares allotted to them. Half of the offer has been reserved for QIBs, 15 percent for high networth individuals (non-institutional investors), and the remaining 35 percent for retail.
Market update at 2 PM: Sensex is up 363.05 points or 0.58% at 62656.69, and the Nifty added 88.50 points or 0.48% at 18601.30.
TARC gets Occupation Certificate for premium residential project in Gurugram
TARC has secured the Occupation Certificate (OC) for its premium residential project, TARC Maceo, in the lush and sprawling Sector 91, Gurugram.
TARC was quoting at Rs 41.60, up Rs 0.60, or 1.46 percent on the BSE.
Hindustan Zinc In Action
Officials of the company will interact with prospective investors via non-deal roadshows for disinvestment of residual government's shareholding in the company, as per the disclosure filed on the bourses.
Gold dips as dollar ticks up on China COVID risks
Gold prices slipped on Monday, as investors preferred the safe-haven dollar amid protests in several Chinese cities over the country's strict COVID-19 restrictions.
Spot gold was down 0.3% at $1,750.20 per ounce, as of 0745 GMT. U.S. gold futures fell 0.2% to $1,750.10.
The dollar index was up 0.2%, making the greenback-priced bullion more expensive for buyers holding other currencies.
JK Cement increases cement grinding capacity of 2 MTPA
JK Cement has increased its cement grinding capacity by 2 million tonne per annum as its subsidiary Jaykaycem (Central) has successfully commenced cement grinding capacity at its newly set up cement manufacturing facilities in Uttar Pradesh.
J. K. Cement was quoting at Rs 3,021.65, up Rs 7.45, or 0.25 percent on the BSE.
Here are the stocks that have seen a huge spurt in its share price over the last three days; Click To View More
Nifty Energy index gained 1.5 percent supported by the BPCL, Reliance Industries, IOC
TIL decides to bring in Indocrest Defence Solutions as strategic investor
TIL has decided to increase the authorized capital to infuse funds into the business of the company, by bringing in a strategic investor, subject to shareholder and other requisite approvals.
The capital is to be infused by Indocrest Defence Solutions Private Limited, which is a part of Gainwell Group, headed by Mr. Sunil Kumar Chaturvedi.
Dharmaj Crop Guard IPO subscribed 74% on debut, retail portion fully booked
Agrochemical company Dharmaj Crop Guard has received bids of 59.23 lakh shares for its initial public offering against an issue size of 80.12 lakh shares, resulting into a 74 percent subscription, on November 28, the first day of bidding.
Retail investors are at the forefront, putting in bids for 1.08 times of the shares allotted to the them.
Employees have bid for 51 percent as against 55,000 reserved shares. They will get shares at a discount of Rs 10 a share to the final offer price.
More than 100 stocks touched their 52 week highs during the day; click to view more
Techno Electric & Engineering Company wins orders worth Rs 700 crore
Techno Electric & Engineering Company has been awarded with orders worth Rs 700 crore. Here's the breakup
GOA Tamanar Transmission Project Limited - Transmission - Rs 126 crore
RECPDCL - 2.5 Lakh Smart Meters in Jammu & Kashmir on DBFOOT Basis - Rs 338 crore
Tripura State Electricity Corporation - Transmission - Rs 230 crore
Market at 1 PM
The Sensex was up 376.30 points or 0.60% at 62669.94, and the Nifty was up 92.10 points or 0.50% at 18604.90. About 1976 shares have advanced, 1303 shares declined, and 165 shares are unchanged.
ICICI Lombard Large Trade | 5.32 lakh shares (0.11% equity) worth Rs 61.56 crore change hands at Rs 1,157.55 per share
Ajay Menon, MD & CEO, Broking & Distribution, Motilal Oswal Financial Services
Nifty today touched its all-time high after its recent rally of more than 10% over last two month. Strong domestic macros, robust earnings growth and sharp correction in oil prices is big positive for Indian equities.
For Q2FY23, Nifty companies grew by 9% as compared to expectations of flattish growth. Excluding the global commodities, the growth stood out strong at 33%.
Going ahead too we expect the momentum to remain strong with expectation of Nifty earnings CAGR of 17% over next 2 years. The oil prices have corrected by ~15% and fallen to just above $80bbl which is positive for our oil import dependent economy.
Even the wholesale and the retail inflation has cooled off and is showing signs of peaking out. Now with Fed’s commentary on slowing down the pace of rate hike has given boost to the global sentiments which along with strong domestic fundamentals is proving to be a boom for the Indian equities.
At the same time, the festive season this year witnessed a buoyant demand – being the first one without any restrictions post 2 years of Covid. The buoyancy in demand is expected to continue with the onset of marriage season. Apart from this, bank credit continues to grow in late teens over last few months and is expected to continue this uptrend with the pickup in capex from H2. India is entering big capex upcycle which would provide leg-up to the overall economy.
