Market rundown by Vinod Nair, Head of Research, Geojit Financial Services
"Market traded in a positive bias on account of renewed buying in IT stocks and expectation of sovereign rating upgrade. Domestic fundamentals are better while a positive upgrade in rating will provide more conviction to investors on the government’s reforms agenda."
3:39 PM Nifty PSU Banks fall
3:38 PM Sectoral Trend
3:36 PM Top Sensex gainers and losers
3:34 PM Broader Markets
In broader markets, the BSE Midcap and BSE Smallcap indices ended 0.6% and 0.5% higher
3:32 PM Markets at close
The S&P BSE index ended the day at 33,679, up 91 points while the broader Nifty50 index settled at 10,389, up 40 points
BSE to auction investment limits for Rs 4,000-cr govt bonds
Leading stock exchange BSE on Friday said it will auction investment limits on Monday, enabling foreign investors to purchase government bonds nearly worth Rs 4,000 crore.
The auction will be conducted on BSE's 'ebidexchange' platform from 1530 hrs to 1730 hrs, after the close of market hours, the exchange said in a circular.
The debt auction quota gives overseas investors the right to invest in the debt up to the limit purchased.
Theresa May steps up lobbying efforts to broaden Brexit talks with EU
British Prime Minister Theresa May is stepping up her lobbying efforts to broaden Brexit negotiations with the European Union to future relations and trade, as the talks bog down on preliminary issues.
May said today that she will hold meetings in Brussels, including with EU Council President Donald Tusk, about progress in the talks, which must be completed well before Britain leaves the bloc in March 2019.
She sidestepped questions about how much Britain would pay to settle its EU financial accounts, saying talks will look "ahead to the future deep and special partnership that I want with the European Union."
HDFC Life to raise exposure to capital goods stocks on govt infra push
HDFC Standard Life Insurance Co is looking to invest more in the capital goods sectors and a range of companies that are expected to benefit from a major government push to build more homes and roads.
Funds are likely to be put into cement makers, suppliers of building materials such as tiles and paints, and financiers of the road and housing projects, Prasun Gajri, chief investment officer at HDFC Life told Reuters.
"I think the entire capital goods sector could start looking better than what it has been in the past," said Gajri, who oversees management of more than $15 billion of investments in debt and equity. "We could look to increase exposure in some of these areas as we go along." READ MORE
Uber's $10-bn stock sale deal with SoftBank shrouded in data breach scandal
A newspaper advertisement for an Uber Technologies Inc stock sale was juxtaposed on Wednesday with a report that the ride-service provider had covered up a data hack - something of a metaphor for Uber, a company with boundless investor interest, but whose penchant for rule-breaking has led to a series of scandals.
The stock sale advertised in the New York Times will enable Uber investors to sell their shares to Japanese investor SoftBank, a critical deal for the company whose problems included building software to spy on competitors and to evade regulators and being investigated in Asia for paying bribes. READ MORE
2:30 PM Market Check
Action Construction zooms over 100% in one month; stock hits new high
Action Construction Equipment hit a new high of Rs 156, up 10% on the BSE, extending its 60% surge of the past two weeks after the company reported nearly three-fold jump in its net profit at Rs 11 crore in September 2017 quarter (Q2FY18). The company engaged in transport related services business had posted profit of Rs 4 crore in the same quarter of the last fiscal year.
Revenue from operations during the quarter under review increased by 31% at Rs 251 crore against Rs 190 crore in the corresponding quarter of previous fiscal. READ MORE
RIL sells stake in US Marcellus shale assets to BKV Chelsea for $126 mn
Reliance Industries (RIL) on Friday announced that a subsidiary of its Reliance Holding USA has closed the sale of its upstream Marcellus shale assets in America to BKV Chelsea for $126 million.
The Mukesh Ambani-led RIL said that Reliance Marcellus II has sold its interest in the shale gas assets in northeastern and central Pennsylvania state in the US to BKV Chelsea, an oil and gas affiliate of American investment firm Kalnin Ventures.
The sale transaction of the assets, currently operated by Carrizo Oil and Gas, closed on November 21, an RIL statement said. READ MORE
Bajaj Finserv offers lowest interest rate of 8.30% on home loans
Bajaj Finserv, through its lending arm, Bajaj Finance Ltd., announced the lowest ever interest rates on home loans and home loan balance transfer in its limited period offer.
Home buyers can now avail a loan at 8.30 per cent for a loan value above Rs 30 lakh. Currently, it is one of the lowest interest rates offered by any financial institution in the country.
Bajaj Finserv is also offering the highest top-up value of Rs 50 lakh for applicants opting for balance transfer at a minimal interest rate. The top-up amount can be used for different purpose like new home decor and improvement, wedding or holiday expenses, or second home investment through a very simple process. This unique proposition of home loan balance transfer with a top-up from Bajaj Finserv could ensure lower interest rates and savings on EMI's. READ MORE
1:35 PM Top Sensex gaienrs and Losers
1:20 PM Slips in trade
Shares of Bata India fell 3% intraday on Friday as investors turned cautious after Motilal Oswal downgraded the stock.
The broking firm downgraded the stock to sell, with a target of Rs 578, a downside of 23%
1:05 PM Markets check at 1:00 pm
Reliance Securities on NALCO
NALCO delivered a mixed performance in 2QFY18, with Alumina sales volume surging 31% YoY and 47% QoQ to 380,000 tonnes. However, realisation at US$311/tonne was lower than estimate, which along with higher input costs offset the benefit of higher volumes.
On the Aluminium front, sales volume increased 14% YoY and 27% QoQ to 113,000 tonnes, but EBIT loss widened due to lower premium, adverse product-mix and higher power/other input prices.
However, going ahead, we expect NALCO’s profitability to improve as spot alumina is currently trading at ~US$465/tonne and we expect 3QFY18E average alumina prices to be substantially higher than that seen in 2QFY18 and LME aluminium prices too are stable. We are positive on the stock with a Target Price of Rs 92.
Implications of Insolvency ordinance
The presidential assent to the Ordinance effecting crucial changes to the Insolvency and Bankruptcy Code is a bold and clever step towards ensuring that the process of resolving bad loans is not gamed by promoters, who have either defaulted wilfully in the past or have not been paying up in time. The government knew it could not legally impose a blanket ban on promoters from participating in the insolvency process, so it did the next best thing by bringing in important caveats that would prevent errant promoters from misusing the insolvency law to regain control of the companies that are being sold. READ MORE
12:16 PM Sensex heatmap in noon trade
Infosys hits over three-month high
Infosys hit a three month high of Rs 1,011, up 2% on Friday, extending Thursday’s 2.6% gain on the BSE ahead of commencement of the company’s proposed Rs 13,000 crore share buyback programme from November 30, 2017. READ FULL REPORT
First-time investors should stay away from closed-end funds
Closed-end mutual fund schemes serve two purposes: One, it does not allow the investor to time the market, or exit if things get too volatile.
Two, since the corpus is locked in for three years or more, the fund manager gets enough time to give returns to the investor because he can take medium-term calls without worrying too much about the investor’s risk appetite. What is interesting about HDFC Mutual Fund’s latest closed-end scheme is its focus on only the housing sector. READ FULL DETAILS HERE
Aditya Birla Money shed nearly 2% after the Sebi imposed a fine of Rs 10 lakh on Aditya Birla Money for violating norms of stock brokers. Following the development, the stock fell 1.68 per cent to hit a low of Rs 79 on BSE. CLICK HERE FOR DETAILS
LIC may get Irdai breather on 15% investment cap
The Insurance Regulatory and Development Authority of India (Irdai) is open to allowing the Life Insurance Corporation of India (LIC) to increase its stake beyond the 15 per cent ceiling in public sector banks (PSBs). The move is to give a boost to the government’s recapitalisation plan, an initiative to help banks tackle bad loan woes and revive growth. The insurance sector regulator has set a 15 per cent cap on equity shareholding in single stocks for insurance firms. READ FULL REPORT
BSE Midcap, smallcap indices hit new high
The S&P BSE Midcap and the S&P BSE Smallcap indices hit their respective new high on the BSE on Friday, following an extending rally in infrastructure, auto ancillary, education, textiles and public sector banks.
The S&P BSE Smallcap index hit a new high of 18,064.54, while the S&P BSE Midcap index touched a fresh high of 16,937.27 on the BSE in intra-day trade. Both these indices surpassed their previous high of 18,032.91 and 16,850.56, respectively, touched on November 7, 2017 in intra-day trade. READ MORE
10:33 AM Markets check
At 10:30 am, the S&P BSE Sensex was trading at 33,687, up 99 points, while the broader Nifty50 was ruling at 10,386, up 37 points.
Edelweiss Financial Services (EFSL) was trading 3.5% higher at Rs 296 on the BSE, after the company said it has successfully raised Rs 1,528 crore through Qualified Institutions Placement (QIP) route. This is the first equity fund raise by EFSL since its IPO in December, 2007. CLICK HERE FOR MORE
Nifty roll at 16%, is highest in last 7 months (against 9% last 3 months average) and Market wide roll at 11% in-line with 3 months average of 10%;. Nifty roll is trading at 35-36 points on screen.
Market-wide OI stands at 5.5bn shares, highest in last 12 months (up by 6% as compared to previous month same time). BANKNIFTY OI has also increased by 22% and stands at 2.6mn shares, highest in last 4 months. NIFTY OI on the other hand has been reduced by 12% compared to last month and currently stands at 25.3mn shares.
Swaraj Engines surges 11%
Swaraj Engines surged 11% to Rs 2,109 on the BSE in early morning trade after auto ancillary company said that its board will meet on November 28, 2017, to consider the proposal to buyback the fully paid-up equity shares of the company. READ FULL REPORT
LIC Housing: Should you buy into correction?
Things have lately not been in favour of LIC Housing, given that the stock has lost momentum after it peaked at Rs 794 in August with the decline accentuating after its September quarter (Q2) results were declared on October 30. Now trading at Rs 601, the stock has corrected 24 per cent since its peak, and is among the underperformers in recent times.
The question is how much pain it entails for investors and whether the selling seen in the counter is overdone. READ FULL ANALYSIS
9:35 AM Sectoral trend
Christopher Wood on India
The odds of Narendra Modi-led Bharatiya Janata Party (BJP) winning the Gujarat election for the sixth consecutive time remain high, though it is likely that its majority will decline from the victory in the last poll held in 2012, says Christopher Wood, managing director & equity strategist at CLSA.
One strategic blunder, Wood says in his weekly note GREED & fear, which the Congress under the still unconvincing leadership of Rahul Gandhi has made is that it is fighting the campaign on the national issues, such as goods and services tax (GST) and demonetisation.
9:26 AM Sensex heatmap at open
9:21 AM Markets at open
At 9:19 am, the S&P BSE Sensex was trading at 33,664, up 76 points, while the broader Nifty50 was ruling at 10,371, up 23 points.
9:15 AM Stocks in news
Bharti Airtel, Camlin Fine Sciences, Skipper, LIC Housing, Cox & Kings, Aditya Birla Money and Swaraj Engines etc
Derivative strategy on Nifty by Chandan Taparia
NIFTY - BULL CALL SPREAD
BUY 1 LOT OF 10350 CALL @ 70
SELL 1 LOT OF 10450 CALL @ 30
Technical calls by Motilal Oswal Securities
Last Close: Rs 736
Stop Loss: Rs 722
Derivative strategy on Dish TV by HDFC Securities
Buy Dish TV November 80 call at Rs 2
Stop loss: Rs 1
Target: Rs 4.50
Devangshu Datta on Nifty, Bank Nifty, Hindalco, Adani Ports, HCL Tech
Chinese markets extend fall
Although solid global economic growth and strong corporate earnings have underpinned shares in Asia and many other parts of the world, a tumble in mainland Chinese shares on Thursday caught some investors’ attention.
The CSI300 index fell 3% on Thursday, its biggest decline in almost a year and a half, on concerns about rising Chinese bond yields. The index extended losses on Friday and was trading 0.6% lower.
Asian shares hovered below their 10-year peak. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked down 0.1% in early trade, led by 0.3% fall in Australian shares. The MSCI index hovered still just 0.5% below its 10-year peak hit earlier this week.
Japan's Nikkei fell 0.6% after a market holiday on Thursday while US stock futures ESc1 were little changed after shortened trading on Thursday.
At 8:42 am, the Singapore-traded SGX Nifty, an early indicator of NSE Nifty50’s performance, was little changed at 10,370.
8:43 AM Good Morning!
Welcome to Business Standard's market liveblog.
First Published: Fri, November 24 2017. 15:31 IST