Sensex ends 110 pts lower ahead of Q2 GDP data; BSE Smallcap index up 2.4%

All that happened in the markets today

4:20 PM

MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services

"Today’s market momentum was driven by uncertainty related to the efficacy of Covid vaccine and expectation of Q2 GDP data. Although GDP is expected to improve compared to the previous quarter, the recovery in the Indian economy is likely to be lower in comparison to its global peers. Lately, broader markets have started to outperform the benchmarks, showing a shift in demand to mid and small-caps. From these high levels, for the market to stay resilient and midcaps to outperform, the economy has to normalise and more stimulus has to be announced, which will take some more time based on the government’s plan and availability of vaccine."

 

Weekly Outlook

 

"The market showcased a positive momentum and touched an all-time high level during the week mainly driven by reports of vaccine development and FII inflow. The volatility throughout the week was at elevated levels and witnessed weakness in the latter half leading to profit booking. The US markets inched to new highs during the week on hopes of vaccine development and ease in US political risks. However, European markets snailed through the week owing to the extension of coronavirus restrictions. Market is awaiting the outcome of major events like RBI policy, the release of Manufacturing and Service PMI and banking business data which will be decisive factors driving the market in the upcoming week."

3:43 PM

Except Nifty IT, all sectoral indices on the NSE end in the green

3:42 PM

MARKET AT CLOSE | Losers and gainers on the S&P BSE Sensex

3:36 PM

CLOSING BELL

The S&P BSE Sensex slipped 110 points, or 0.25 per cent to settle at 44,150 while NSE's Nifty ended at 12,969, down 18 points, or 0.14 per cent.

3:27 PM

MARKET CHECK

3:22 PM

BROKERAGE VIEW | ICICI Securities on Timken India

Amid a challenging environment, Timken has managed to sustain its operating margins albeit on a lower topline. MNC status, debt free balance sheet & high return ratios bode well for the company amid uncertain times. However, the recent run up in Timken’s stock price has made valuations too expensive for our comfort. Thus, taking into consideration all the above factors, we roll over and introduce FY23E. We pencil in revenue, EBIDTA and PAT CAGR of 5%, 5% & 2.6%, respectively, in FY20E-23E. We value Timken at 35x FY23EPS to arrive at a target price of Rs1,235/share. We revise our rating on the stock from BUY to HOLD.

3:15 PM

BROKERAGE VIEW | HDFC Securities on Godrej Properties

Godrej Properties Ltd (GPL) is a sectoral bell-weather with an innate capacity to build homes. Over the years, it has metamorphosed into a seamless home manufacturing machine with the shortest production time from land acquisition to approvals to launches and sales. In this journey, it has gained market share and emerged a crucial challenger in the respective micro-markets; it is on its way to becoming a leader. Given strong brand, robust financial capacity and strong execution capabilities, landowners/Tier 2 developers have been partnering with GPL for JV opportunities. The growth journey is expected to crystallise further with the regulatory landscape changing over the years, in favour of organised developers. We believe GPL only constrains itself, and that is its biggest strength or weakness. Given the recent run-up we initiate coverage on the stock with an ADD recommendation and SOTP of Rs 1,164/sh (40% NAV premium).

3:08 PM

MARKET HOLIDAY :: Equity and forex markets to remain shut on Monday, Nov 30, on account of Gurunanak Jayanti

3:03 PM

Public sector banks extend gain; PNB, Canara Bank up over 5%

Among individual stocks, PNB was the top gainer among PSU banks, up 7 per cent to Rs 34.15 in intra-day trade today. In the past one week, the stock has gained 15 per cent after the bank said ICRA Ratings has upgraded the ratings of Bonds issued by the Bank and reaffirmed the rating of Certificate of Deposits. READ MORE 

2:54 PM

Hitachi ABB Power Grids teams up with Ashok Leyland in e-bus pilot

Hitachi ABB Power Grids in India, listed on the stock exchanges as ‘ABB Power Products and Systems India Ltd.’, has signed a Memorandum of Understanding (MoU) with Ashok Leyland and the Indian Institute of Technology Madras (IITM) for an e-mobility pilot. The triumvirate will run an electric bus (e-bus) pilot for in-campus commuting by IITM’s students and staff.

 

The e-bus, which will incorporate Hitachi ABB Power Grids’ innovative flash-charging technology – Grid-eMotionTM Flash, will be provided by Ashok Leyland. IITM will host the infrastructure required to operate the flash-charging system for the e-bus. READ MORE
 

2:48 PM

Interest Waiver Case :: Restraining order on banks w.r.t classifying accounts as NPA should be vacated, says Harish Salve for IBA

>> Says, Banks are rendered helpless against defaulting borrowers

Govt counsel to SC: Issues should be allowed to be ironed out as per mechanisms in place

Alert: IBA is Indian Banks; Association

2:45 PM

Index contributors at this hour

2:34 PM

Nifty Bank Index trades flat amid on-going Interest waiver case hearing

2:27 PM

NEWS ALERT :: SC begins hearing in interest waiver case

2:26 PM

Siemens India: Hopes hinge on sustained manufacturing sector revival

A stock like Siemens India dramatically reacting to its quarterly results was pretty much unheard of till Thursday. Even as the global engineering major’s net profit for the September quarter (Q4; the company follows October to September accounting year) declined by 4.7 per cent year-on-year (YoY) and revenue at Rs 3,422 crore fell short of previous year’s number by nine per cent, the Siemens India stock soared by 11.6 per cent on Thursday. READ MORE

2:22 PM

BSE SmallCap index trades 1.76% higher

2:15 PM

Vakrangee gains 28% in 2 days after rolling back amalgamation scheme

Shares of Vakrangee moved higher by 14 per cent to Rs 39.70 on the BSE in the intra-day trade on Friday, surging 28 per cent in the past two trading days, after its board approved the withdrew amalgamation scheme for two wholly-owned subsidiaries due to "substantial changes in the business environment". READ MORE

2:09 PM

Coal India, PNB: How to trade stocks that underperformed amid market rally

The stock market has witnessed a stellar rebound as the benchmark indices have zoomed over 70 per cent from their respective March lows. At 01:44 PM, the S&P BSE Sensex was trading at 44,251 levels while NSE's Nifty was just shy of the crucial level of 13,000. However, amid this market rally, there have been few counters which have underperformed the market. READ MORE

2:01 PM

European indices trade flat in early deals

(Source: Reuters)

1:48 PM

Burger King IPO to open on December 2; here is all you need to know

Burger King aims to raise Rs 810 crore through the issue which comprises a fresh issue of shares worth Rs 450 crore, and an offer for sale of up to 60 million shares by promoter entity QSR Asia Pte Ltd worth Rs 360 crore, at the upper end of the price band.

 

The company intends to utilise the fresh proceeds to finance the roll-out of new company-owned Burger King Restaurants and to meet the general corporate purposes. READ MORE

1:37 PM

Divi's Labs: New capex, margin expansion to support earnings growth

With gains of 51 per cent, Divi’s Laboratories has been the best-performing large-cap pharma stock in the past six months. The stock hit its all-time high earlier this week and is within a touching distance of the Rs 1-trillion market-cap mark.

 

If it tops that, it would be only the second pharma company to cross that mark after Sun Pharma. The recent trigger for the stock has been earnings upgrades led by strong margin performance and a revenue visibility on the back of additional capex. READ MORE
 

1:26 PM

MARKET CHECK :: Sensex at this hour

1:18 PM

Commodity Corner :: Copper zooms near 7-year high

The metal, widely used in power and construction industries, has rallied 77 per cent since its March lows.

 

"Copper's rise is generally macro driven because of the vaccine and risk sentiment remains upbeat .... We are seeing synchronised gains across all metals," said ING analyst Wenyu Yao. READ MORE

1:09 PM

Top 5 stock picks by Ashish Biswas, Head of Technical Research, CapitalVia Global Research

>> GMR INFRA above 26.25 with a TGT of 27.20 and SL of 25.35. It has a support of 8 DMA.

>> Adani Ports above 401.60 with a TGT of 408 and SL of 395.50. It has support of 21 and 55 MA in short time period.

>> HDFC AMC above 2545 with a TGT of 2615 and SL of 2480. It is trading in an upward moving channel.

>> JSW ENERGY above 62 with a TGT of 64 and SL of 60. It is on the support levels currently and we can expect a reversal from here.

>> SRT TRANSFIN above 1076 with a TGT of 1100 and SL of 10554. It is trading in an upward moving channel.

 

1:01 PM

Bitcoin and millennials :: How Indian crypto entrepreneurs beat the system

Having the world’s largest diaspora — and more than $100 billion in two-way money flows last year — isn’t the only thing. Prime Minister Narendra Modi’s disastrous ban on 86 per cent of the country’s currency in November 2016 shook Indians’ faith in fiat money. Add the fear of leaving spare cash in banks when three major deposit-taking institutions have crumbled in the past 15 months. No wonder Arcane expects Indian crypto volumes to overtake China’s. READ MORE

12:52 PM

IPO Alert :: Burger King IPO to open on Dec 2

Issue Type: Book building

Issue size: 135 million shares (75 million fresh issue, 60 million OFS shares)

Amount: Rs 810 crore

Bid closes: Dec 4

Expected listing: Dec 14

12:48 PM

Greaves Cotton advances 17% in two days as promoter increases stake in Co

On Wednesday, November 25, 2020, D B H International Private Limited, the promoter group Greaves Cotton has acquired 207,500 equity shares of company at an average price of Rs 73.82 per share, according to disclosure made by company to the stock exchange. READ MORE

12:40 PM

Q&A | IT and telecom will do well in the medium term: Vinay Paharia of Union AMC

We expect sectors such as IT and telecom to do well in the medium term. IT has seen a meaningful rise in demand, given the pande­m­ic. Firms are accelerating IT spends, which is happening for survival and not growth. Telecom is expected to witness benefits of consolidation and rise in demand, given the increased data consumption by both consumers and enterprises. READ FULL INTERVIEW HERE

Vinay Paharia, Chief Investment Officer, Union Asset Management Company

12:25 PM

Q2FY21 GDP :: Expectation by Jyoti Roy- DVP- Equity Strategist at Angel Broking

>> GDP growth numbers are expected to show an improvement sequentially. Post the Q2FY21 numbers most economists have revised their GDP growth numbers for Q2. The contraction in Q2 is expected anywhere between 7-10% as compared to earlier expectations of low double digit contraction.  As long as the GDP print is not significantly below consensus estimates we do not expect markets will react too negatively to it. 

>> However in case the Q2FY21GDP contraction is less than consensus estimates of ~8% then markets will react positively to it. However, we believe that markets will focus more on high frequency indicators like PMI, Auto sales and power demand which point to significant acceleration in the economy from October due to festive demand and opening up of the economy. PMI and Auto sales numbers for the month of November are expected in the first week of December which we believe will be more crucial for the markets.”

 

 

 

12:15 PM

MARKET UPDATE:: Broader indices outperform benchmarks