Closing Bell: Nifty around 19,700, Sensex down 140 pts; IT stocks outperform

Benchmark indices ended lower for the second consecutive session on November 20 with Nifty around 19,700. At close, the Sensex was down 139.58 points or 0.21 percent at 65,655.15, and the Nifty was down 37.80 points or 0.19 percent at 19,694.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices/ for all the global market action.

The Nifty opened on a flat note and consolidated during the day to close down ~38 points. On the daily charts we can observe that since last three trading sessions the Nifty is trading within the range 19875 – 19627. On the downside the Nifty is approaching the crucial support zone of 19650 – 19600 where multiple support parameters in the form of the 40 hour moving average and the lower end of the rising channel is placed. We expect Nifty to hold on to this support. The hourly momentum indicator has a negative crossover and has reached the equilibrium line indicating that the correction has matured and can start a new cycle on the upside. In terms of levels, 19610 – 19650 is the crucial support zone while 19900 – 19930 is the immediate resistance zone.

Bank Nifty also witnessed a correction, however it is now approaching crucial support zone 43400 – 43300 where we can expect buying interest. The hourly momentum indicator has triggered a positive crossover which is a buy signal. We expect the support to hold and resume its upmove. On the upside, 44000 – 44100 shall act as an immediate hurdle from short term perspective.

Markets lingered in negative territory in a listless trading session and extended its losing streak amid selling in select frontline stocks. Investors continue to trade with caution amid uncertainty over the ongoing West Asia conflict, and global economic slowdown concerns. While markets struggled to capitalize on positive global cues, investors also shrugged off hopes for more stimulus from China. Technically, Nifty needs to reclaim the 19889 mark to unleash fresh upside, while the biggest support is placed at 19471 mark.

Elevated long-term interest rate trends and a weakening global economy continue to hurt inflows and market movement. While the recent softening of inflation in the US & India and the negative trend of crude are expected to help the view on global equity and India in the short term.

In that context, the ease in FIIs selling is helping the domestic markets but continues to consolidate primarily due to India's premium valuation relative to global peers.

In this scenario, the IT sector is benefiting; however, valuation continues to be on the higher side compared to long-term history, suggesting a cautious approach in the sector in the medium term.

Markets started the week on a subdued note and closed almost unchanged. After the flat start, Nifty oscillated in a narrow range and finally settled at 19,694 levels.
Meanwhile, a mixed trend was witnessed on the sectoral front wherein IT posted decent gains while auto and metal ended in the red. The broader indices also witnessed some consolidation and closed on a flat note.

We are seeing a time-wise correction in Nifty so far despite the underperformance of the banking pack. Besides, the pause in the US markets is also capping the move. Amid all, we reiterate our bullish view on the index and suggest continuing with the “buy on dips” approach. Traders should stick with the other performing sectors and utilise this phase to gradually add quality names.

As anticipated, the markets remained rangebound post the tepid opening and finally settled at 19,694.00 with a loss of 37.80 points. Sector-wise, the IT sector kept on strengthening its uptrend while the Auto sector witnessed a pressure of profit booking.

The index has made a small negative candle in the middle of the range (19,850-19,550). We believe that the index is heading towards forming a right shoulder of an Inverted Head and Shoulder formation.

Indian rupee ended lower at 83.34 per dollar on Monday versus Friday's close of 83.27.

: Benchmark indices ended lower for the second consecutive session on November 20 with Nifty around 19,700.

At close, the Sensex was down 139.58 points or 0.21 percent at 65,655.15, and the Nifty was down 37.80 points or 0.19 percent at 19,694. About 1784 shares advanced, 1864 shares declined, and 146 shares unchanged.

Top losers on the Nifty included Adani Enterprises, M&M, Bajaj Finance, SBI Life Insurance and UltraTech Cement, while gainers were Divis Labs, Bharti Airtel, HCL Technologies, Wipro and ONGC.

On the sectoral front, Information Technology index up 0.6 percent and healthcare index up 0.3 percent, while selling is seen in the metal, auto, capital goods, FMCG, realty names.

BSE midcap index ended flat, while smallcap index rose 0.4 percent.

-Buy call, target raised to Rs 500 from Rs 410 per share
-Market appears sceptical about companies ARR (average room rate)/ occupancy growth
-There is a surge in luxury supply from competitors
-Remain positive on overall market supply/demand balance
-Think company can continue to surprise on rooms, ARR & occupancy
-Upgraded EBITDA is 9 percent/18 percent ahead of consensus for FY25/26e

Shares of Mankind Pharma Limited surged close to four percent to touch an all-time high of Rs 1,998 after the pharmaceutical company was added to the FTSE All-World, Large-Cap, Total-Cap, and All-Cap indices, marking a significant recognition for the Indian company.

The Index is a market-capitalisation-weighted index representing the performance of large, mid and small-cap stocks globally. The index covers developed and emerging markets and is suitable as the basis for investment products, such as funds, derivatives and exchange-traded funds. Read More

Oil futures edged higher on Monday, extending gains on the prospect of OPEC+ deepening supply cuts to shore up prices that have fallen for four weeks on demand concerns and Middle East supply disruption owing to the Israel-Hamas conflict.

Brent crude futures rose 34 cents to $80.95 a barrel by 0915 GMT. U.S. West Texas Intermediate crude was up 31 cents at $76.20.

The front-month December WTI contract expires later on Monday while the more active January futures gained 38 cents to $76.42.

-Outperform call, target Rs 7,390 per share
-Management focussed on its USD 2 billlon plan in four years and pure dig positioning & margin upside potential
-Challenger positioning, high quality of responses, helping it gain against larger peers
-Key hires at CEO-1 level show ambitions to become a much larger firm

Sensex Today | BSE FMCG Index down 0.3 percent dragged by Foods and Inns, AVT Natural Products, Share India Securities:

Indian Renewable Energy Development Agency (IREDA) IPO is set to open on November 21. The 67.19 crore shares IPO comprises a fresh issue of 40.32 crore equity shares by the company and an offer-for-sale of 26.88 crore shares by the Government of India.

Analysts at Reliance Securities, Choice, Nirmal Bang and Mehta Equities have assigned a ‘Subscribe’ rating to the issue owing to low base, demonstrated track record of high growth, improvement in asset quality and cheap valuations.

-Wait continues as Indian staple firms are yet to show a volume growth pick-up
-Most of our coverage reporting <5 percent YoY volume growth during Q2
-Gross margin made a smart recovery
-Competition picked-up too which warranted a rise in A&P spends
-EBITDA growth still was a strong 16 percent YoY
-Most management sound hopeful on a better festive season ahead
-Management highlighting a pick-up at the exit

Expect growth momentum to sustain, driven by sustainable demand across segments in the long term. The company stands to benefit from multiple factors such as an uptick in capex in its end-user industries, China +1 strategy, strong government initiatives to support domestic manufacturing, and increasing demand prospects for specialty products driven by clean energy initiatives.

Moreover, all segments are witnessing healthy profitability. The stock trades at ~29xFY26E EPS and the rich valuations are justified given strong earnings growth outlook and a healthy balance sheet and improving return ratios. Therefore, retain Buy on the stock with an unchanged price target (PT) of Rs 1,315.

Sensex Today | Market at 3 PM

The Sensex was down 110.58 points or 0.17 percent at 65,684.15, and the Nifty was down 31.30 points or 0.16 percent at 19,700.50. About 1644 shares advanced, 1675 shares declined, and 125 shares unchanged.

The Reserve Bank of India has approved an appointment of Arun Khurana as Whole-time Director (Executive Director) of IndusIndia Bank for three years with effect from November 16. Arun was the Deputy CEO of the bank and also the overall head of Global Markets Group (GMG).

-Buy call, target Rs 400 per share
-Zee-Sony merger talks locked over leadership issue
-Fundamentals steady; Dec 20 key date to watch out for
-An interim CEO could be a good near-term solution
-Interim CEO would help complete the merger
-Interim CEO Will give both sides more time to iron out any potential differences
-Fundamentally, think business momentum remains steady
Expect recovery in both advertisement & subscription revenues
-See room for better margin in next few years on reducing OTT content competition

Reflecting an appetite for US government bonds as the US yields go up, Aditya Birla Sun Life Mutual Fund on November 20 said it collected nearly Rs 200 crore for its Aditya Birla Sun Life US Treasury Bond ETFs Fund of Funds NFOs (new fund offers) that opened from 16th October 2023 to 30th October 2023.

"I am happy to share that almost 7,000 investors have capitalized on this unique opportunity and invested in Aditya Birla Sun Life US Treasury Bond ETFs Fund of Funds NFO,” said A Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC.

There are two funds with similar profile but catering to different type of investors. Aditya Birla Sun Life US Treasury 1-3 Year Bond ETFs Fund of Funds is suitable for investors with a shorter investment horizon and who have a relatively conservative risk profile, the company said. Aditya Birla Sun Life US Treasury 3-10 Year Bond ETFs Fund of Funds is suitable for investors with a long term investment horizon and who have a higher risk profile.

Broking firm believe Oberoi Realty much-awaited foray into NCR provides further growth visibility. However, retain pre-sales and cash flow estimate as firm await clarity on launch timelines of this project

At current valuations, company's residential business implies a value of Rs 360-370 billion, while the estimated value of the existing pipeline, including the Gurugram project, is Rs 230 billion, implying 50-60% of going concern premium.

Motilal Oswal believe with seven new projects (two projects in Thane, GSK-Worli, Peddar Road, Tardeo redevelopment, potential MHADA redevelopment in Andheri and Gurugram) already tied up, the management is unlikely to be aggressive on new project acquisitions in the near term.

Thus, implied going concern premium already accounts for near-term growth visibility. Reiterate Neutral rating with an unchanged Target Price of Rs 1,200, indicating 11% downside potential.

Gold prices held steady on Monday, as the dollar extended its slide on expectations that the Federal Reserve was done raising interest rates, while investors awaited for minutes of the Fed's latest meeting due this week.

Spot gold was little changed at $1,978.89 per ounce as of 0739 GMT, after rising 2.2% last week. U.S. gold futures edged down 0.2% to $1,981.10.

-Buy call, target Rs 8,845 per share
-Temporarily suspends new EMI cards issuance
-Fee income to be impacted in near term
-Proactive temporary suspension of new EMI cards, is not material
-Company confirmed that it does not impact its customer acquisition engine
-Will continue to offer financing to new/existing customers at dealer stores

The Reserve Bank of India has approved an appointment of Arun Khurana as Whole-time Director (Executive Director) of IndusIndia Bank for three years with effect from November 16. Arun was the Deputy CEO of the bank and also the overall head of Global Markets Group (GMG).

Sensex Today | Market at 2 PM

The Sensex was down 148.77 points or 0.23 percent at 65,645.96, and the Nifty was down 36.60 points or 0.19 percent at 19,695.20. About 1626 shares advanced, 1667 shares declined, and 130 shares unchanged.

The General Tax Authority, Qatar has imposed a penalty of 4,86,80,120 QAR (around Rs 111.31 crore) on Larsen & Toubro for tax period for FY17 and 5,58,22,856 QAR (around Rs 127.64 crore) for tax period of FY18. An appeal has been filed against the levy of this penalty as the company believes it is arbitrary and unjustified.

The American Petroleum Institute has granted license to Birla Corporation's cement plant at Chanderia namely, Birla Cement Works, to use official API monogram on manufactured products viz API Well Cement Class G at Grade(s) HSR with effect from November 17. Company intends to participate in the tender process for sale of API Well Cement Class G at Grade(s) HSR to cater to the needs of the oil exploration entities.

Electrosteel Castings will carry out repairs and maintenance of its blast furnace at its Khardah unit tentatively from November 24. It is expected that the blast furnace would be operational after 3 to 4 weeks. All other units of the company will operate normally during this period.

Broking house trim FY24E/25E EPS estimates 9%/1% due to lower growth and margin. It reiterate Buy with a raised Target Price of Rs 630 (from Rs 600) on 36x September 2025E earnings as optimistic on the company scripting a turnaround, led by growth and sharp margin uptick on various cost measures.

Expect an earnings CAGR of 76% in FY23-26E, with FY24E-26E ROE/ROCE at 12%/9%, respectively.

Vinayak Kudtarkar has resigned as General Manager (Finance) & Chief Financial Officer of Gujarat Alkalies & Chemicals with effect from November 18. The company has appointed Ram Gianani as CFO with effect from same date. Ram was working an Additional General Manager (Finance) with the company since December 2013.

Kotak Mahindra Bank has received an order from the Government of Maharashtra Department of Goods and Service Tax, levying an amount of Rs 34,99,796 towards Goods and Services Tax (GST) and interest and a penalty of Rs 1,64,936, for the alleged excess claim of GST credit and non-payment of GST under reverse charge in certain instances during the assessment period July 2017 – March 2018.

Sensex Today | BSE Smllcap index touched fresh high, adding 0.3 percent led by Talbros Automotive Components, Tata Investment Corporation, Prataap Snacks: 

-Overweight Call, target Rs 10,300 per share
-Reported that it is temporarily discontinuing issuance of new EMI cards
-Continues to expect non-material financial impact
-Company is in the process of implementing requisite actions to make good deficiencies
-Will continue to engage with RBI to ensure compliance on all parameters

Sensex Today | Market at 1 PM

The Sensex was down 173.30 points or 0.26 percent at 65,621.43, and the Nifty was down 45.60 points or 0.23 percent at 19,686.20. About 1654 shares advanced, 1625 shares declined, and 124 shares unchanged.

Poonawalla Fincorp has received penalty order of Rs 2.87 lakh levied for excess claim of GST input, from Assistant Commissioner of Central Tax, Ameerpet GST Division. The said penalty pertains to FY18, FY19 and FY20.

Persistent Systems launched a unique open-source maintenance service to facilitate keeping an organization’s open-source software up to date with all patches, bug fixes, and incorporating the latest software releases.

Shares of Tata Investment Corporation rallied more than 15 percent to hit a fresh 52-week high on November 20, extending its stellar rally for the second consecutive day. In the previous session, the stock had surged up to 20 percent. The sharp rally comes ahead of the Tata Technologies IPO, which will open for public subscription on November 22. Tata Technologies is a subsidiary of Tata Motors and Tata Investment Corporation is a promoter group entity of the auto major.

Analysts believe Tata Investment Corporation has an opportunity of value unlocking from Tata Technologies IPO. The news of the public issue has generated a positive outlook for Tata Investment Corporation, contributing to the impressive rise in its share price. Tata Technologies IPO will open on November 22 and end on November 24. Read More

Stock Market LIVE Updates | Jefferies View On IT 

-Recently met with the management teams of 7 IT firms
-Conversations suggest that demand uncertainty persists 
-Increasing revenue leakage & deeper furloughs in Q3
-Near term growth outlook remains weak 
-CY24 budgets could be set lower posing risks to consensus estimate of 7.7 percent growth in FY25 
-Management commentary inspires confidence on margin stability 
-With no clear improvement in demand, & rich sector valuations, remain selective

CRISIL Ratings has downgraded its ratings on the long term bank facilities and debt instruments of Vedanta to AA- from AA and placed these ratings on ‘Rating Watch with Developing Implications’ from ‘Rating Watch with Negative Implications’. CRISIL reaffirmed its ratings on the short-term debt instruments of the company at CRISIL A1+ and placing these ratings also on ‘Rating Watch with Developing Implications’.

-Overweight call, target Rs 950 per share
-Impact of RBI measures on tier 1 ratio will not constrain business
-The impact on cost of funds should be manageable
-Growth in receivables is lower than industry and its own history
-See lower risk of having to slow unsecured credit growth more sharply than others

We believe the Tata Tech IPO offer gives investors an opportunity to invest in a leading global engineering services company with deep expertise in the automation industry focused in Engineering Research & Development (“ER&D”). We like the company's strong established brand and diverse product portfolio across different product categories from traditional OEM’s to new age energy vehicles like EV. We think outsourcing business model would be in great demand going forward in engineering services and digital transformation services to global manufacturing clients helping clients to conceive, design, develop and deliver better products. By looking at the financials historically, Tata Tech has delivered a strong revenue and margin growth in the last 3 years and expect the growth would remain similar going forward.

On Valuation per se at upper price band of Rs 500/- and based on annualized earnings and fully diluted post-IPO paid-up capital, the issue is asking for a Market Cap of Rs 20,283 crore with P/E of 29x on consolidated basis, which seems the issue is reasonably priced when compared industry peers which are trading 60x. Despite 100% OFS offer investors are keen to own the share based on group legacy. Considering all the parameters, we strongly advocate a good long term prospects for the company. Hence, we recommend investors to "SUBSCRIBE” to the Tata Tech IPO offer with long-term perspective as well as strong listing gain due to investor friendly pricing given good room for upside.

Bondada Engineering has received work orders worth Rs 32.72 crore from Dinesh Engineers. Bondada will supply 40mtr towers with all the accessories.

Oriental Rail Infrastructure: Oriental Rail has secured orders worth Rs 19.92 crore from Rail Coach Factory (RCF), Kapurthala, Indian Railways. The company will manufacture and supply 277 sets of seat and berths for AC 3 tier & 2 tier coaches.

Nykaa shares zoomed over 5 percent on November 20, keeping up the last week's rally, to hit an 11-month high. Shares of the new-age tech firm sees a strong uptrend since it reported the September-quarter financials earlier this month. Though the company’s BPC business showed sluggish growth, the market turned positive on the stock on the back of a rebound in the fashion business. READ MORE

Container Corporation of India: The stock appears to be in a phase of time correction, forming a higher high and higher low structure over the past three weeks on the larger degree chart. READ MORE

Shares of Indian Hotels Company (IHCL) gained 2 percent to Rs 418 on November 20 after brokerage firm UBS raised the target price on the counter to Rs 500 per share from Rs 410, implying an upside of over 19 percent from current levels. The S&P BSE Sensex was down 133 points or 0.2 percent to 65,661 levels, as of 10:10am. READ MORE

Shares Aurobindo Pharma gained 1 percent to clock a fresh 52-week high of Rs 1,017.30 on November 20 after the United States Food and Drug Administration (US FDA) completed an inspection with zero observation.

The US FDA conducted a pre-approval inspection (PAI) at Unit-I and III, formulation manufacturing facility, of APL Healthcare Ltd, a wholly owned subsidiary of the company, at TSIIC Green Industrial Park, Pollepally Village in Telangana.

The inspection was conducted from November 13 to 17 and closed with zero observation and a classification of 'No Action Indicated' (NAI), the company said. Read More

Sensex Today | Market at 11 AM

The Sensex was down 8.51 points or 0.01 percent at 65,786.22, and the Nifty was up 9.70 points or 0.05 percent at 19,741.50. About 1907 shares advanced, 1273 shares declined, and 132 shares unchanged.

Adani Power shares added 1.5 percent in early trade on November 20. Ardour Investment Holding and Emerging Market Investment DMCC, two of the company’s promoters, have raised their stakes in the company during September 26 to November 16.

The two Adani Power promoters increased their stake through open market transactions. Ardour Investment raised its shareholding by 1.93 percent or 7.42 crore shares, while Emerging Market Investment DMCC added 0.13 percent or 50 lakh shares to its holdings. Read More

2H is usually a strong period for volume pickups and heavy capex is expected to increase the evacuation capacity of NMDC, which will support the volume growth going forward.

NMDC is on track to exceed 50mt of volumes in FY25. Considering the improved outlook on volumes, global iron ore prices, and strong demand, broking house increased revenue/EBITDA estimates by 11%/13% for FY25.

NMDC trades at FY25E EV/EBITDA of 5.2x and FY25E P/B of 1.7x. Reiterate buy rating on NMDC with a revised Target Price of Rs 190.

Shares of Vedanta opened 0.5 percent higher during early trade on November 20, after the Anil Agarwal-led company received a GST demand order worth Rs 1.38 crore from GST & Central Excise Commissionerate, Rourkela. At 9:50 am, the stock was trading at Rs 240.45.

In a November 18 regulatory filing, Vedanta said that it has received GST demand order worth Rs 1,38 crore along with applicable interest, from the GST & Central Excise Commissionerate, Rourkela. A penalty of 10 percent of the demand issued may also be leviable, if the original demand is not discharged by the company, the filing adds. The company has decided to file the appeal with the Appellate Authority under the GST Law, after evaluated the merits of the case. The appeal drafting is in progress and will be filed in due course, the filing said. Read More

Shares of Indian Hotels Company (IHCL) gained 2 percent to Rs 418 on November 20 after brokerage firm UBS raised the target price on the counter to Rs 500 per share from Rs 410, implying an upside of over 19 percent from current levels. The S&P BSE Sensex was down 133 points or 0.2 percent to 65,661 levels, as of 10:10am.

In the past three months, the stock of IHCL has surged 9 percent as against a percent rise in the benchmark Sensex. The IHCL scrip had earlier touched a 52-week high of Rs 436 on September 7. Read More

The Central Government has approved the appointment of Pranav Kumar Mallick as Part-time Chief Vigilance Officer of Indian Railway Finance Corporation, the additional charge, for three years. Pranav Kumar Mallick is currently the Executive Director (Transformation) of the company.

The Hydrocarbon business of Larsen & Toubro (L&T) has received a Letter of Intent for mega offshore order from a prestigious client in the Middle East.

The scope of work comprises engineering, procurement, construction and installation of a new large offshore platform and brownfield work of integration with existing facilities.

Softbank, through its entity SVF Doorbell (Cayman) sold 1.83 crore equity shares, equivalent to 2.49% of paid-up equity, in Delhivery via open market transactions, at an average price of Rs 403.51 per share. The stake sale amounted to Rs 738.64 crore. SVF had held 14.46% stake in Delhivery, at the end of September 2023.

-Buy call, target raised to Rs 190 from Rs 160 per share
-Expect upside to domestic ore prices, though management is non-committal
-NMDC’s fines prices are at 20 percent+ discount to export parity
-NMDC’S fines prices have headroom to rise by Rs 1,000/t
-Actual increase maybe lesser as domestic steel prices have downside risk
-Trades at 3.8x FY25 EV/EBITDA on an implied iron ore price of USD 115/t (spot USD 130)
-Global peers trade at 4.5- 6x, NMDC offers FCF yield of ~8.5 percent

NBCC (India) has entered into the Memorandum of Understanding with Institute of the Chartered Accountant of India (ICAI). ICAI has agreed to award the work relating to planning, designing and execution of its buildings & renovation works at various location in India, while NBCC has agreed to undertake and complete the works at a PMC fee at 6.5% on actual project cost.

Sensex Today | BSE Realty index up 0.6 percent supported by Oberoi Realty, Prestige Estate, Godrej Properties: 

Mazagon Dock Shipbuilders will turn ex-dividend with effect from November 20. The interim dividend for current financial year is Rs 15.34 per share. Aurobindo Pharma, Cochin Shipyard, Anupam Rasayan India, Balrampur Chini Mills, GMM Pfaudler, Bella Casa Fashion & Retail, Dolat Algotech, GM Polyplast, and Kaveri Seed Company will also trade ex-dividend on the same day.

Sensex Today | Market at 10 AM

The Sensex was down 116.01 points or 0.18 percent at 65,678.72, and the Nifty was down 21.50 points or 0.11 percent at 19,710.30. About 1830 shares advanced, 1199 shares declined, and 145 shares unchanged.

CFM Mozambique has awarded the tender for 10 diesel electric locomotives with incidental services to RITES at a total value of $37.68 million. But the company lost the tender for 300 high side wagons by CFM Mozambique.

After the Reserve Bank of India issued regulatory measures towards consumer credit and bank credit to NBFCs, SBI Cards and Payment Services said this would impact the capital adequacy ratios for banks and NBFCs, and for SBI Card this impact would reduce capital adequacy by around 4%. "We do not foresee significant impact on our cost of funds during this financial year. It may increase marginally in absolute terms on an annualised basis.

Sensex Today | Nifty Bank index down 0.26 percent around 43,500 dragged by Bandhan Bank, Axis Bank, Federal Bank:

L&T Technology Services Limited has announced a collaboration with NVIDIA to develop software-defined architectures for medical devices focused on endoscopy, which will enhance the image quality and scalability of products.