Anand James, Chief Market Strategist, Geojit Financial Services
Domestic indices shrugged off negativity among Asian peers and enthused by expectations for further reform measures, in the light of textile sector now getting finance ministry's nod. Amendments in the 'Insolvency And Bankruptcy Code' may put the banking sector again in prime focus, but it was short-covering ahead of the F&O expiry that was giving muscle to the late rise. RBI’s December policy meet will be in focus, but with inflation firm, investors may go in with low rate-cut expectations.
Bitcoin hits new record high
Bitcoin's vertiginous ascent showed no signs of stopping on Monday, with the cryptocurrency soaring to another record high just a few percent away from $10,000 after gaining more than a fifth in value over the past three days alone.
The digital currency has seen an eye-watering tenfold increase in its value since the start of the year, and has more than doubled in value since the beginning of October. READ FULL REPORT
3:53 PM Sensex heatmap at close
3:46 PM Broader markets
Broader markets outperformed the benchmark indices with the BSE Midcap and the BSE Smallcap indices gaining 0.5% and 0.7%, respectively.
3:41 PM Markets check
The S&P BSE Sensex ended at 33,724, up 45 points, while the broader Nifty50 closed at 10,399, up 10 points.
Ashok Leyland was trading 4% higher at Rs 124 on the BSE in noon deal after the company and Hino Motors Ltd. Japan have entered into a Mutual Cooperation Agreement (MCA) for Euro VI Engines.
“As per agreement, Ashok Leyland will utilize Hino's engine technology for Ashok Leyland's EURO-VI development and will support in development of Hino's engine parts purchasing in India for global operation,” the company said in a press release. READ FULL REPORT
3:12 PM Top five Nifty gainers in last leg of trade
3:07 PM Markets check
At 3:00 pm, the S&P BSE Sensex was trading at 33,687, up 8 points, while the broader Nifty50 was ruling at 10,385, down 4 points.
Success of bitcoin, other cryptocurrencies just a bubble
Central bankers say the success of bitcoin and other cryptocurrencies is just a bubble.
But it keeps them awake at night because these private currencies threaten their control of the banking system and money supply, which could undermine the monetary policies they use to manage inflation. READ FULL REPORT
Shares of personal products company, Emami, realty firm, DLF, two-wheeler company, TVS Motor Company, broadcasting & cable TV operators, Zee Entertainment Enterprises and TV18 Broadcast are among 24 stocks from the S&P BSE 500 index that hot their respective 52-week high on the BSE in an otherwise subdued market.
Bajaj Electrical, Eveready Industries, PC Jeweller, Symphony, V-Guard Industries and Westlife Development from the consumer related sectors, too, hit 52-week high today. READ FULL REPORT
Reliance Securities on Torrent Pharma
Torrent Pharmaceuticals (TRP) is a strong player in chronic segment in India and Unichem acquisition is a strategic fit for the Company as it would further strengthen its presence in key chronic therapy segment. TRP would be able to improve the profitability of Unichem’s product portfolio through its strong field force and distribution network.
Looking ahead, we expect a healthy growth in TRP’s domestic formulation (14.5% CAGR), Brazil (15.8% CAGR) and RoW (13.3% CAGR) business over FY17-19E.
We expect TRP’s Sales, EBITDA and PAT to witness 13%, 15% and 15% CAGR, respectively, while EBITDA margin is expected to improve by 100bps to 24.5% over FY17-19E.
We have not factored the impact of Unichem acquisition into our valuation model due to pending regulatory approvals. Envisaging a healthy growth in India and Brazil businesses led by new launches and improvement in sale force productivity, we maintain our BUY recommendation and Target Price of Rs 1,450, valuing the stock at 20x FY19E EPS of Rs 72.5.
Insolvency and Bankruptcy Code
Lenders and prospective bidders are having a serious difference of opinion on the valuation of toxic assets, to be auctioned under the modified insolvency law.
While the lenders are insisting that resolution professionals get the enterprise valuation of these companies done to ensure sale negotiations begin from a higher point, the bidders say such firms should be sold at a “scrap” value in accordance with the provisions of the Insolvency and Bankruptcy Code (IBC). READ FULL REPORT
Skipper hits record high
Skipper hit a record high of Rs 293, up 11% on the BSE in intra-day trade, extending its Friday’s 3.5% gain on the BSE, after the company’s board gave an in-principle nod to tie-up with Metzerplas of Israel to make Drip irrigation system. READ FULL REPORT
1:02 PM Market Check
Interview of the day
India should see over 20% equity return in 2018: Motilal Oswal
In an interview, Motilal Oswal, chairman and managing director, Motilal Oswal Financial Services, says that with Moody’s upgrading India’s sovereign rating and earnings growth coming back, the country will remain a hot destination for foreign investors. READ FULL INTERVIEW HERE
Can Maruti Suzuki stock hit Rs 10,000 levels?
After a stellar 60% rally thus far in calendar year 2017 (CY17) and outperforming the S&P BSE Sensex and S&P BSE Auto indices that rose 26% and 25% during this period, can Maruti Suzuki hit the five-figure mark over the next one year? Analysts at Nomura believe that Maruti, which is already trading near its 52-week high level on the National Stock Exchange (NSE) can come close to hitting this figure.
In Nomura's latest report on the outlook for global auto companies for 2018, Maruti Suzuki with a price target of Rs 9,843 features among the top regional pick for 2018 along with China’s BYD and United States headquartered Tesla, with Toyota being their preferred global pick in the auto sector. READ MORE
Lakshmi Vilas Bank falls 6% after fixing rights issue ratio
Lakshmi Vilas Bank has dipped 6% to Rs 170 on the BSE in intra-day trade after the private sector lender fixed rights issue in the ratio of 1:3 i.e. one rights equity share for every three equity shares held by the eligible shareholders on the record date.
The bank has fixed December 06, 2017 as the record date for the purpose of rights issue of equity shares. The stock will turn for ex-rights on December 05, 2017 on the BSE and NSE.
“The rights issue of 64.50 million equity shares to be offered at price of Rs 122 per rights equity share, for an amount aggregating up to Rs 786.87 crore,” Lakshmi Vilas Bank said in a statement. READ MORE
12:03 PM Nifty Chart for the day
SIP inflows up 48% till October
The money coming into mutual fund (MF) schemes through systematic investment plans (SIP) has seen a 48 per cent jump this financial year. In the first seven months of 2017-18, nearly Rs 35,000 crore has come through SIPs, at an average of Rs 5,000 crore a month.
In comparison, Rs 23,584 crore had come in — at an average of Rs 3,370 crore a month — in the corresponding period of 2016-17. Flows through the SIP route, where an investor commits a fixed sum every month, have seen a drastic improvement over the years.
Smallcap index up for 8th trading day in a row
The S&P BSE Smallcap index rallied for eight trading days in a row, outperforming the broader indices on a strong rally in textiles, realty, constructions, finance and capital goods stocks.
In the past eight trading sessions, the smallcap index rallied 4.8% against 3.9% rise in midcap and 2.6% gain in the benchmark Sensex.
Jai Corp, Puravankara, BF Investments, Praj Industries, Texmaco Infrastructure, Donear Industries, Bombay Rayon Fashions, High Ground Energy and Gitanjali Gems from the smallcap index have surged more than 40% during the period. READ MORE
11:16 AM Top Sensex gainers and losers
10:58 AM Market Check
GHCL surges 9% after DSP Blackrock Mutual Fund buys stakes
GHCL hits a record high of Rs 299, up 9% on the BSE in early morning trade after the DSP Blackrock Mutual Fund bought nearly one percentage point stake in the commodity chemicals company through open market.
On the National Stock Exchange (NSE), the stock hit a high of Rs 298, up 9% against its Friday’s close of Rs 274.
On November 24, 2017, DSP Blackrock Mutual Fund A/c DSP Blackrock Micro Cap Fund had purchased 950,528 equity shares representing 0.98% stake in GHCL at price of Rs 272 per share on the NSE, the bulk deal data shows. READ MORE
Private equity exit the reason behind Future Supply Chain IPO: Biyani
The upcoming IPO of Future Supply Chain Solutions, which is expected to garner over Rs 700 crore, is primarily to give an exit to private equity firm Griffin Partners, Future Group Chairman Kishore Biyani said on Sunday.
Future Supply Chain Solutions Ltd (FSCSL), a subsidiary of Future Enterprises, has filed a draft red herring prospectus with Sebi for the public issue of up to about 97.84 lakh equity shares representing 24.43 per cent of the existing paid-up equity share capital of FSCSL. READ MORE
Sun Pharma drops after recall of product
Sun Pharmaceutical Industries lost 1.19% to Rs 542 on BSE after the company said it is recalling two lots of Riomet to the retail level.
The announcement was made after market hours on Friday, 24 November 2017.
China's industrial profits up 25% y-o-y in Oct; bank assets grow by 10%
Profits earned by China's industrial companies in October rose 25.1 per cent from a year earlier, the statistics bureau said on Monday, slowing from a 27.7 per cent gain in September.
Profits rose to 745.4 billion yuan ($112.94 billion) in October, the National Bureau of Statistics (NBS) said on its website.
In September, profits surged the most in nearly six years as prices of finished goods including steel and copper soared. READ MORE
India-focused funds continue to see robust inflows
After sharp outflows in August and September, the Indian market is once again experiencing a positive investment spell from overseas investors. Foreign portfolio investors (FPIs) have poured nearly $3 billion into domestic stocks since August.
A large part of these flows have come from India-focused offshore funds. These are actively managed funds that exclusively invest in select Indian securities, unlike exchange-traded funds (ETFs) which track indices such as the Nifty 50 or the S&P BSE Sensex.
In October, India-focussed offshore funds received inflows of $573 million, while India-focussed offshore ETFs saw net outflows of $31 million, the data from Morningstar Investment Adviser India shows. READ MORE
Street signs: Retail success rate to be high in Infosys buyback
Retail investors could see high success rate in the Rs 13,000-crore buyback of Infosys, starting on Thursday. While the ‘entitlement ratio’ for retail shareholders is 28 per cent, the ‘acceptance ratio’ could be as high as 50 per cent, say brokers. In other words, a retail shareholder holding 100 shares of Infosys can tender 28 shares under the buyback programme.
However, if the shareholder tenders say 100 shares, it is likely that about 50 could be accepted. This is because typically most retail shareholders don’t tender shares in buybacks READ MORE
9:29 AM Top sectoral loser: Nifty PSU Bank index falls 1%
9:23 AM Sectoral Trend
9:20 AM Top Sensex gainers and losers
9:19 AM Broader Markets
In broader makrets, the BSE Midcap and BSE Smallcap indcies were trading 0.3% and 0.05% lower
9:17 AM Markets open
Benchmark indices open on a negative note after S&P maintained status quo on sovereign rating amid a likely rise in volatility ahead of expiry of November futures & options contracts and looming Opec meeting on oil output cut later this week.
At 9:17 am, the S&P BSE Sensex was trading at 33,600, down 78 points while the broader Nifty50 index was ruling at 10,362, down 27 points
Nifty outlook by Prabhudas Lilladher
Nifty has got its weekly trend turned up along with daily already up since 6 days, Bank Nifty too continues with its weekly & daily trend in positive. The support for the week is seen at 10,230 while resistance is seen at 10,560.
Stock recos for today by Angel Broking
Last Close: Rs 82
Last Close: Rs 298.85
Last Close: Rs 3653.25
Stock Picks from Devang Shah
GODREJ INDUSTRIES -BUY
CLOSE – Rs- 561
TARGET – Rs 580-595
AJANTA PHARMA- BUY
CLOSE – Rs 1328
TARGET – Rs 1370-1400
BHARAT FINANCIAL - BUY
CLOSE – Rs 988
Nifty outlook by Devang Shah
Nifty closed 2nd consecutive week in positive territory. It’s slow but steady heading towards higher levels with some consolidation in short term. It made a high of 10404.50 levels during week & closed nearer to it at the end of weekly trading session. It looks like extension case further towards upper end of channel as anticipating from wave count perspectives till lower end support holds. One can expect market to rally towards higher levels targets as mentioned below till short term reverses. Trader should BUY stock specific & book profit at regular intervals.
Short-term outlook for the market remains positive till Nifty trades below 10,094 levels and expecting target of 10,600-10,800 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 8,968 levels and is expecting targets in the range of 12,000-12,200 levels in medium term. READ MORE
Earnings yield of BSE 500 firms at 11-year low
The mismatch between corporate earnings and stock prices has widened on Dalal Street, with the earnings yield for India’s top listed companies now down to a decadal low of 3.5 per cent. The figure was 4.5 per cent at the start of 2007 and four per cent a year before.
The current yield is even lower than at the end of December 2007, a week before the great market fall of 2008. This analysis is based on the latest earnings and market capitalisation of BSE 500 index companies, which account for 90 per cent of the combined market value of listed firms on the bourse. READ MORE
Seven of top-10 firms add Rs 54k cr in m-cap
Seven of the top-10 most valued Indian companies together added Rs 54,174.2 crore in market valuation last week, with Reliance Industries (RIL) stealing the show with maximum gain.
Barring Tata Consultancy Services (TCS), SBI and HUL, rest seven companies, including HDFC Bank and ITC saw addition in their market capitalisation (m-cap) for the week ended Friday. RIL's valuation jumped Rs 25,205.6 crore to Rs 6,01,324.56 crore. READ MORE
Insolvency and Bankruptcy Code: Lenders, bidders split on assets valuation
While the lenders are insisting that resolution professionals get the enterprise valuation of these companies done to ensure sale negotiations begin from a higher point, the bidders say such firms should be sold at a “scrap” value in accordance with the provisions of the Insolvency and Bankruptcy Code (IBC). READ MORE
FPIs infuse $2.6 bn into Indian stocks this month
Foreign investors have pumped over $2.6 billion in the country's capital markets this month so far, propelled by government's announcement of recapitalising PSU banks and India faring well in the World Bank's 'ease of doing business index'.
This follows a net inflow of over Rs 19,000 crore in capital markets (equity and debt) last month. Prior to that, FPIs had pulled out more than Rs 10,000 crore in September. READ MORE
S&P retains India's sovereign rating
S&P retained its sovereign rating for India at BBB- with a stable outlook, dashing hopes of another upgrade after rival Moody’s last week lifted its rating by a notch after a gap of nearly 14 years. S&P last raised India credit ratings to investment grade, BBB with a stable outlook, from BB+ in January 2007. READ MORE
Asia stocks slip as China, South Korea weakness weigh
Asian stocks gave back earlier modest gains and fell back from a decade high on Monday, weighed by weakness in the Chinese and South Korean markets, while the euro reached a two-month top against the dollar.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose early in the session on Friday’s Wall Street gains but was last down 0.65%.
South Korea’s KOSPI fell 1.3% as tech shares slumped following an analyst’s report suggesting the memory chip “super cycle” would soon fade, led lower by Samsung Electronics.
US markets end higher on Friday
Technology stocks led the S&P 500 and Nasdaq to record closing highs on Friday, with the S&P ending above 2,600 points for the first time. The Dow rose 31.81 points, or 0.14%, to 23,557.99, while the S&P gained 5.34 points, or 0.21%, to 2,602.42. The Nasdaq added 21.80 points, or 0.32%, to 6,889.16.
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First Published: Mon, November 27 2017. 15:33 IST