Share Market Highlights 07 December 2023: Sensex sheds 132 pts, Nifty around 20,900; Bharti Airtel, HUL drag

Benchmark equity indices Sensex and Nifty snapped their seven-day winning streak on Thursday as investors booked profits after recent sharp gains amid negative cues from Asian markets.

The 30-share BSE Sensex fell 132.04 points, or 0.19 per cent, to close at 69,521.69. The gauge hit the lowest intra-day level of 69,320.53.

Broader index Nifty also declined 36.55 points, or 0.17 per cent, to settle at 20,901.15.

The rupee depreciated 4 paise to close at 83.36 (provisional) against the US dollar on Thursday, tracking elevated American currency in the overseas market and a muted trend in domestic equities.

Forex traders said the rupee traded in a narrow range as the support from easing crude oil prices was negated by strong dollar demand from importers.

At the interbank foreign exchange market, the rupee opened at 83.36 and touched a low of 83.37 against the greenback. It finally settled at 83.36 (provisional) against the dollar, down by 4 paise from its previous close.

The announcement of merging BSE and NSE’s GIFT City units by January 2024, and the subsequent introduction of direct listing for Indian companies in GIFT City by April 2024 is a welcome move and a major step forward towards developing GIFT City as a major International Financial Centre. This will facilitate access to global capital and better valuation. The advantages of trading in GIFT City are simple, all trades are dollar denominated. Thus, foreign investors would not have to incur the extra cost of converting their currency and hedging it.

Currently, Indian companies can list on foreign exchanges through the GDR (Global Depository Receipt) route. Direct listing is expected to eliminate the need for GDRs, which help companies raise capital in foreign markets. However, significant challenges remain with clarity still required on taxation, foreign investor regulations, takeover code regulations, and disclosure requirements on the direct listing.

Top losers on the NSE at 3 pm- Oil and natural gas corporation (1.61%), Hindustan Unilever (1.96%%), Larsen and Toubro Ltd. (1.42%), Apollo hospitals enterprise Ltd. (1.43%).

Top gainers on the NSE at 3 pm - Adani ports and special economic zone (1.98%), Power Grid Corporation of India (2.74%), Cipla Ltd. (1.30%), Ultratech cement Ltd. (1.39%), Grasiam industries Ltd. (1.18%).

A total of 3,866 stocks were traded on the BSE, of which, 2,156 advanced, while 1,588 declined and 122 stocks remained unchanged. As many as 326 stocks hit a 52-week high and 26 stocks hit a 52 week low at 3 pm on Thursday.

The announcement of merging BSE and NSE’s GIFT City units by January 2024, and the subsequent introduction of direct listing for Indian companies in GIFT City by April 2024 is a welcome move and a major step forward towards developing GIFT City as a major International Financial Centre. This will facilitate access to global capital and better valuation. The advantages of trading in GIFT City are simple, all trades are dollar denominated. Thus, foreign investors would not have to incur the extra cost of converting their currency and hedging it.

Currently, Indian companies can list on foreign exchanges through the GDR (Global Depository Receipt) route. Direct listing is expected to eliminate the need for GDRs, which help companies raise capital in foreign markets. However, significant challenges remain with clarity still required on taxation, foreign investor regulations, takeover code regulations, and disclosure requirements on the direct listing.

Oil and natural gas corporation (1.61%), Hindustan Unilever (1.96%%), Larsen and Toubro Ltd. (1.42%), Apollo hospitals enterprise Ltd. (1.43%)

Adani ports and special economic zone (1.98%), Power Grid corporation of India (2.74%), Cipla Ltd. (1.30%), Ultratech cement Ltd. (1.39%), grasiam industries Ltd. (1.18%)

A total of 3,866 stocks were traded on the BSE, of which, 2,156 advanced, while 1,588 declined and 122 stocks remained unchanged. As many as 326 stocks hit a 52 week high and 26 stocks hit a 52 week low at 3 pm on Thursday.

Oriental Foundry’s wholly-owned subsidiary, Oriental Foundry Private Limited, has inked an agreement with “United Wagon Company ‘‘ for providing full design, technical details, and support for modern wagons and bogies for Indian Railways. The shares were up by 7.11% to Rs 168.70, on the BSE.

PSP Projects Ltd. secured an order valued at Rs 101.67 crore for the “Construction and Maintenance of Main Building of GBRC” project at GIFT City, Gujarat. The company’s total order inflow for the fiscal year 2023-24 reaches Rs 1060.30 crore. The company also emerges as the Lowest Bidder for the “Development of Sabarmati Riverfront’‘ project in Ahmedabad, Gujarat, valued at Rs 409.93 crore. Shares up by 0.86% to Rs 780.35, on the BSE.

SBC Exports Limited secures a contract from EPFO, Ministry of Labour and Employment, through GeM for Hiring of Technical Resources worth Rs2.93 crore. Shares were down by 0.77% to Rs 30.94, on the BSE.

Top gainers on the Nifty50 at 2:10 pm- Adani Ports (2.58%), Powergrid (2.12%), Cipla (1.56%), Ultra Cement (1.33%), Titan (1.24%). While top losers on the Nifty 50 at 2:10 pm - Bharti Airtel (2.03%), Hindustan Unilever (1.86%), ONGC (1.81%), Apollo Hospital (1.70%), Hindalco (1.34%). 

Happiest Minds Technologies Ltd’s shares rose 3.58% to Rs 869, on the BSE. The company was honoured as the ‘Procurement Organization of the Year’ at the 8th Annual ISM-INDIA Conference and CPO Awards 2023. and also been commended for its ‘Excellence in Supply Chain Initiatives’

The NSE Nifty was down by 0.11% or 23.15 points at 20,914.55 while the BSE Sensex was down 0.15% or 106.12 points at 69,547.61 at 2.05 pm on Thursday.

Monarch Networth Capital Limited launches MNCL Capital Compounder Fund 2 through its asset management arm, Monarch AIF. The flexi-cap fund aims to raise Rs 600-700 crore with a 4-year closed-ended tenure, extendable by 2 years. Shares were up by 0.53% to Rs 499.25

Shraddha Prime Projects Limited unveiled a redevelopment project in Borivali West, Mumbai, with a potential revenue of Rs 400 crores in the next 3 years. Shares were up by 4.99% to Rs 62.52, on the BSE.

Anupam Rasayan India Limited, one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals, has announced the registration of a wholly-owned subsidiary in Tokyo, Japan. The new entity, “Anupam Japan GK,” solidifies the company’s commitment to expanding its operations internationally, especially in Japan which is one of its target markets.

Mukand Limited completes the sale of 48.30% equity investment in Stainless India Limited to India Thermal Power Private Ltd, receiving Rs. 66,78,600. The shares were up by 0.29% to Rs 175.85, on the BSE.

Delta Corp Ltd’s shares rose 1.76% to Rs 141.40 after the Calcutta High Court granted interim relief to subsidiary Deltatech Gaming of Rs 6,384 crore for which a GST notice was sent in October.

Ircon International Ltd’s shares plunged 5.41% to Rs 162.15 after Government decided to sell an 8% stake via OFS at a floor price of Rs 154 per share, 4% of which includes base size and green shoe of 4%. OFS to non-retail to open today and for retail on Dec 8.

Bharat Electronics Ltd’s shares were up by 1.95% to Rs 159.25. The company reported receiving orders worth Rs 3,915 crore for the supply of various defence equipment.

Bafna Pharmaceuticals Limited is facing production disruption as Chennai facilities are flooded due to torrential rains and Michaung cyclone impact. The company is assessing the situation and will update stakeholders once normalcy is restored. The shares rose 0.01% to Rs 101.50 on the BSE.

​Mphasis Ltd​ adopted AWS Skill Builder for talent development, cloud and cognitive services. The initiative aims to upskill employees. Mphasis plans to certify 1,500 engineers within the next year. The shares rose 0.31% to Rs 2391.50, on the BSE.

Ramco Systems Defense and Security implemented its Aviation M&E MRO Suite V5.9 at General Atomics Aeronautical Systems, for the SkyGuardian Global Support Solutions program. The suite enhances product engineering, optimises supply chains, and improves overall customer satisfaction for GA-ASI’s unmanned aerial systems. Shares were up by 3.12% to Rs 285.90, on the BSE.

Trigyn Technologies Limited secures an extension for its subsidiary’s contract with the United Nations OICT for IT Staffing Support Services, valid until June 30, 2024, with a revised amount of $ 263 million. Shares were up by 7.41% to Rs 138.50, on the BSE.

DroneAcharya Aerial Innovations Limited launches First Person View (FPV) Drones for asymmetric warfare, offering cost-effective and versatile solutions for Indian Defense. The drones provide real-time video feeds, navigate enclosed spaces, and serve various military purposes. Shares were up by 0.68% to Rs 184.90, on the BSE.

RattanIndia Enterprises Gets Featured in the Fortune 500 December 2023 edition. The company reported Q2FY24 revenues of Rs 1,618 crore and a profit after tax of Rs 141 crore. Stock trades at Rs 82, up by 2.55%, on the BSE.

L&T Technology Services announces the operationalisation of the approved Scheme of Amalgamation with Esencia Technologies, Graphene Semiconductor Services, and Seastar Labs. The Certified True Copy of the National Company Law Tribunal (NCLT) order was received on December 5, 2023, and the scheme is now officially effective from today. Shares were up by 1.28% to Rs 4921.45, on the BSE.

UTI Asset Management Company approves the allotment of 9,427 equity shares. The new shares will have equivalent standing with existing equity shares. Stock trades at Rs 833.05, down by 0.70%, on the BSE.

Emerald Finance Limited secures a Rs 15 crore Term Loan from State Bank of India to fuel business expansion, focusing on its Earned Wage Access Program. The program enables employees of corporations to access a portion of their salaries throughout the month. The company aims to collaborate with employers for the provision of short-term loans to their employees. Shares were down by 2.66% to Rs 24.49, on the BSE.

Automaker Hyundai Motor India Ltd on Thursday said it will hike the prices of its vehicles from next month citing rising input cost, adverse exchange rate and increase in commodity prices.

Sudev Industries Limited, announces a change in Scrip ID and Abbreviated name effective December 13, 2023. The company’s Scrip Code 526530 will now be identified as IIRM Holdings India Limited with the abbreviated name “IIRM ‘‘ on the BSE platform. Shares were up by 4.99% to Rs 43.59, on the BSE.

Stocks hitting 52 week high on the NSE- HLV Ltd, Vertoz Advertising Limited, Dredging Corporation of India Limited, Sandur Manganese & Iron Ores Limited, IVP Limited

Stocks hitting 52 week low on the NSE- Mufin Green Finance Limited, Raj Rayon Industries Limited, Nippon India, SEL Manufacturing Company Limited

1. One 97 communications Ltd (18.47%), 

2. Network 18 media and investments Ltd. (7.95%), 

3. TV 18 broadcast Ltd. (7.43%), 

4. IRCON International Ltd. (6.25%), 

5. Praj industries Ltd. (4.55%)

1. ITI Ltd. (14.31%), 

2. Sandur Manganese and iron ores Ltd. (11.03%), 

3. KIOCL Ltd. (9.99%), 

4. MMTC Ltd. (9.98%), 

5. Tata power co. Ltd. (9.03%)

A total of 3,744 stocks were traded on the BSE, of which, 2,142 advanced, while 1,438 declined and 164 stocks remained unchanged. As many as 283 stocks hit a 52 week high and 20 stocks hit a 52 week low at 12 pm on Thursday.

Vipul Organics Limited, participated in PAPEREX 2023, showcasing colouring solutions for the paper industry. The company aims to expand its presence in the paper segment, expecting a Rs 50 Crore turnover in the next 3 years. Shares were up by 0.71% to Rs 141.45, on the BSE

Restaurant Brands Asia Limited’s subsidiary, PT Sari Burger Indonesia, has entered into a facility agreement with Axis Bank Limited, IBU, Gift City, for a secured term loan facility of USD 17.54 Million, secured by a Standby Letter of Credit. Shares were down by 0.48% to Rs 115.15, on the BSE.

CSL Finance Limited introduces an Online Dispute Resolution Portal. The ODRP aims to offer levels for complaint resolution, including escalation through SEBI SCORES Portal. Shares were down by 0.39% to Rs 410.50, on the BSE.

Aditya Birla Fashion and Retail Limited confirmed the joint venture with Christian Louboutin for the Indian market as previously intimated on August 4, 2023. The company incorporated CLI Footwear and Accessories Private Limited in partnership with Christian Louboutin SAS, with the Board’s approval to invest up to Rs 10 crore. Shares were up by 1.14% to Rs 240.25, on the BSE

Godawari Power and ISPAT Ltd.’s subsidiary, Hira Ferro Alloys Limited announced the commencement of commercial operations at its 22 MWp Captive Solar PV Power Plant in Bemetra, Chhattisgarh. The solar initiative aims to support environmental sustainability, reduce carbon footprint, and enhance overall cost savings. Shares were down by 0.81% to Rs 682.55, on the BSE.

Thomas Cook (India) Limited is added to the MSCI Domestic Small Cap Index, effective November 30, 2023, as announced by Morgan Stanley Capital International. Shares were up by 0.13% to Rs 150.30, on the BSE.

Sunita Tools Limited secured a contract worth approximately Rs 80.24 lakhs for various mold bases. The order, received from a domestic entity, includes the supply of spinning fixtures, holding plates, and conveyor sprockets, with delivery expected by January 2024. Shares were up by 4.75% to Rs 216, on the BSE.

The Indian Link Chain Manufacturers Limited announces a record date of December 19, 2023, for the subdivision of shares, at the 65th Annual General Meeting. The existing equity share of Rs 100 each will be split into equity shares of Rs 10 each. Shares were up by 5% to Rs 1543.55, on the BSE.

Bank Nifty began today’s session lower at 46,735.40 versus Wednesday’s close of 46,834.55. It has further dipped to 46,650, a cumulative 0.4 per cent below the previous close.

The breadth of the index is giving a considerable bearish bias as it stands at 2/10. Kotak Mahindra Bank, up 0.45 per cent and IndusInd bank, up 0.1 per cent, are the two stocks in the green. On the other hand, IDFC First Bank, down 3.3 per cent, is the top loser.

Nifty PSU bank and Nifty Private bank index are down 0.3 per cent each as both public and private sector banks are largely facing downward pressure today.

Amidst the better-than-expected economic performance in H1FY24, led by an upward surprise in Q2FY24 GDP growth and inflation staying in the comfort zone, we believe RBI will keep the key interest rate unchanged in tomorrow’s MPC meeting. With the recent RBI circular on the increase in the bank’s Risk Weight Assets (RWAs), we are of the opinion that the central bank will focus on liquidity management and credit growth. After the recent strong GDP growth numbers in Q2FY24, we foresee a marginal upward revision in the FY24 GDP growth forecast corroborated by the government’s commitment to capital expenditure. Also, a key pointer in the meeting would be the Governor’s comments on signs of green-shoots in the rural economy. Although there has been an improvement in headline inflation, which has moderated from 7.4 per cent in July to 4.9 per cent in October, an uneven monsoon may cause some volatility in food prices, which may result in an uptick in headline inflation in the coming months. With the high cost of borrowing impacting affordable housing demand, we believe that the Governor may remark on measures to be taken in this segment. In the current scenario, we believe the RBI will retain its withdrawal of accommodation stance, ensuring that it sustains economic growth and is watchful of inflation.

Nifty 50 opened almost flat at 20,932.40 versus Wednesday’s close of 20,937.70. But it has now slid to 20,870, down 0.3 per cent at the end of the first hour of trade.

The equity market across Asia is facing downward pressure and it is weighing on the domestic market. Among the major indices, Nikkei 225 (32,860), ASX 200 (7,160) and Hang Seng (16,240) are down between 0.3 and 1.8 per cent. Read more

Wardwizard Innovations & Mobility Limited reports dispatching 2,563 units of electric two-wheelers in November 2023, selling a total of 9,852 units from August to November 2023. The shares were up by 0.48% to Rs 56.97, on the BSE.

Crudeoil futures traded higher on Thursday morning following talks between Saudi Arabia and Russia on cooperation on oil prices, during Russian President Vladimir Putin’s visit to Saudi on Wednesday. Both nations are important members of OPEC (the Organisation of Petroleum Exporting Countries) and its allies, known as OPEC+.

Marine Electricals (India) Limited secures a Rs 20.25 crore order from Crescon Projects & Services Pvt. Ltd., Tamil Nadu, for the Supply, Testing & Commissioning of LT panels, with delivery scheduled over three months. Shares were down by 0.46% to Rs 87, on the NSE.

Visaka Industries announces the commencement of commercial production at its new VBoards unit in Midnapur, West Bengal, starting today. Stock trades at Rs 89.85, up by 1.26%, on the BSE.

Benchmarks Sensex and Nifty snapped their seven-day run in early trade on Thursday amid selling pressure from foreign institutional investors and tracking cues from Asian markets.

Analysts said, receding crude oil prices in international markets failed to boost sentiment as investors turned to book profit ahead of RBI’s monetary policy decision.

The 30-share BSE Sensex fell 211.21 points, or 0.30 per cent, to 69,442.52. The broader index Nifty also declined 58.95 points, or 0.28 per cent to 20,878.75.

Among major Sensex constituents, Hindustan Unilever, Bharti Airtel, ICICI Bank and Bajaj Finance were the laggards and traded with a loss of up to 2.03 per cent.

Meanwhile, the company that defied the broader market trend were PowerGrid, that rose 1.25 per cent, followed by UltraTech Cement (1.07 per cent), Asian Paints (0.96 per cent) and NTPC (0.76 per cent). Other gainers included Maruti, Kotak Mahindra Bank and HCL Tech.

Nucleus Software adopts Continuous Integration and Continuous Delivery (CICD) along with Acceptance Test-Driven Development (ATDD), aiming to reduce software release cycles by 40%. Shares were up by 0.69% to Rs 1417, on the BSE.

The rupee depreciated 4 paise to 83.36 against the US dollar in the morning session on Thursday, tracking the strength of the American currency in the overseas market and muted trend in domestic equities.

Forex traders said rupee is trading in a narrow range as the support from easing crude oil prices was negated by strong dollar demand from importers.

At the interbank foreign exchange, the rupee opened at 83.36 against the dollar, registering a fall of 4 paise over its previous close.

“There are three factors that can keep the market resilient. One, steady decline in U.S. bond yields (10-year around 4.1% now) has created a global environment favourable for equities. Two, India’s GDP growth rate is improving and inflation is coming down. The steadily declining crude price is another big positive. Three, political uncertainty surrounding the 2024 General elections appears to be out of the way after the crucial state election results. These factors have emboldened the bulls and bears have been forced to cover their short positions.

In spite of these favourable factors, there will be dips in the market triggered by profit booking at higher levels.”

Fitch Ratings-Chicago/Barcelona/Tokyo/Shanghai/Seoul/Frankfurt am Main/London/New York-06 December 2023: The sector outlook for global auto manufacturers and suppliers in 2024 is neutral, according to Fitch Ratings’ new outlook report.

The neutral outlook reflects Fitch’s expectation that improved supply chains will allow for higher global vehicle production, but overall sales will be tempered by less robust economic conditions, particularly in the U.S. and China. Fitch expects global sales and production to rise about 4% in 2024.

Fitch forecasts lower economic growth and higher interest rates will affect overall vehicle demand in 2024. However, high pent-up demand due to industry under production over the past several years is likely to support sales, and more normalized vehicle pricing and mix will bring back some customers priced out of the market. Vehicle production has been running at, or slightly above, recessionary levels for nearly three years, so Fitch does not expect a sales decline in 2024, but sales are likely to remain below pre-pandemic levels.

Most issuers in the global auto sector have Stable Rating Outlooks, with solid balance sheets and sufficient financial flexibility to manage through a moderate stress scenario with ratings intact. As such, barring a significant surprise in the macro environment or unexpected company-specific issues, Fitch expects only limited rating movements in 2024. Rating actions will mainly be confined to those issuers that currently have Positive or Negative Outlooks.

Nifty closed with strong 5% gains in November on the back of positive global market sentiment. The Mid cap Index and Small cap Index outperformed the Large cap Index and were up 10% and 12%, respectively. The key triggers for the rally was, US Fed keeping interest rate unchanged in their policy review. Their dovish remarks made towards the end of the month indicated that they may slow down the pace of tightening going forward. Sector-wise, all sectoral indices ended on a higher note. Realty (+18%), Pharma (11%) and Auto (10%) sectors outperformed, while FMCG (+3.4%) and Banks (+3.8%) underperformed.

FIIs infused US$1.1bn into Indian equities during November followed by another US$1.2bn on the first day of December alone. DII flows remained strong with inflows of USD1.7b during the month. Other key developments were BJP, the ruling party at the Center winning 3 of the 4 state election conducted in November, Moody’s downgrading its outlook on US debt to negative from stable, Reserve Bank of India tightening norms for personal loans and credit cards in the form of higher capital requirements as a precautionary move and IMF and S&P global rating raising its GDP growth forecast for India.

On the macro-economic front, October CPI inflation moderated to 4.87% from 5.02% in September, September IIP growth moderated to 5.8 vs 10.3% in August and GST collections for November showed 15% YoY growth led by good festive demand. The NSE500 companies delivered strong earnings performance in 2QFY24, led by healthy earnings performance from the BFSI and Auto sectors. Key sectors with upward earnings revisions to estimates included Industrials, Healthcare, Energy and Auto while sectors with earnings ‘miss’ and earnings downgrades included Telecom, Materials and IT.

Outlook

Dovish US FED statement on incremental rate hikes has boosted the global investor sentiment, while the recent BJP win in the 4 state elections has given a boost to the domestic investor sentiment as it indicates increased probability for political continuity in 2024. We remain optimistic on Indian equity markets on medium to long term driven by strong economic growth. However post the sharp runup in markets in the recent months, we are cautious on the near-term return potential of the equity markets. Mid-Caps and Small Caps in general have become more expensive after the recent runup. Weak (low growth + low quality) Mid Caps and Small Caps are in bubble zone and caution is advised. Strong (high growth + high quality) Mid Caps and Small Caps present opportunity for long term investors. On a relative top-down basis we are finding better upside in large-caps stocks versus mid-caps and small-cap stocks. Globally we are seeing growth slow-down in developed markets due to elevated interest rates along coupled with sticky inflation situation. This will have an adverse impact of export oriented businesses in India.

In India rural consumption continues to remain weak and Government measures to boost the same is key near-term monitorable. On an overall basis we are positively biased towards domestic oriented industries and are selective on the export oriented industries.

Paytm plunged as much as 20% in early trade on Thursday, a day after the digital payments firm said it will issue fewer sub-50,000-rupee (about $600) personal loans after the central bank tightened rules on consumer lending.

Shares of the company posted their biggest intraday percentage fall since listing two years ago.

Bajaj Electricals Limited disclosed receiving Rs 11.17 crore refund for the assessment year 2020-21, following an order from the Office of Asst. Commissioner of Income Tax in line with the Hon’ble Bombay High Court’s decision on the Scheme of Demerger with Hind Lamps Limited. The shares were up by 0.69% to Rs 1026.10, on the BSE.

TVS Motor Company extends service support for flood-affected customers in Tamil Nadu, Puducherry, and Andhra Pradesh, offering prioritised repairs, free labour for non-insurance flood-related repairs, and towing to authorised service centres from December 8 to December 18, 2023. The shares were up by 1.35% to Rs 1914.75, on the BSE.

Protean eGov Technologies Ltd (formerly NSDL e-Governance Infrastructure Ltd) reports a financial performance for 2QFY24, with a 36.4% YoY growth in revenue. The company’s EBITDA and PAT also experienced YoY growth of 35.4% and 38.3%, respectively. Shares down by 2.28% to Rs1121.90, on the BSE.

Dr Reddy’s Laboratories SA, a wholly-owned subsidiary of Dr Reddy’s Laboratories, has entered into an agreement for the development and commercialisation of COYA 302, an investigational combination therapy for the treatment of Amyotrophic Lateral Sclerosis (ALS).

US scaled back hiring in November with an increase of 1,03,000 against an estimate of 1,30,000 and October’s reading was revised lower to 1,06,000 from 1,13,000.

Service sectors, including education and health services as well as trade and transportation, drove the advance with 44,000 and 55,000 respectively.

Leisure and hospitality, which has been a major driver of job creation during the pandemic recovery, cut jobs by 7,000 for the first time since February 2021.

Manufacturing sector reduced by 15,000 to the lowest level since early 2022.

It showed a further cooling in wage growth. Workers who stayed in their job saw a 5.6% median pay bump in November from a year ago. For those who changed jobs, wages rose 8.3%. It is the slowest pace of increase since 2021.

Report adds to evidence of a gradual cooling in demand for workers. While job creation remains healthy and wage growth is once more topping inflation, employers are increasingly scaling back hiring amid high borrowing costs and lingering price pressures.

The ADP report today is a perfect example of goldilocks report that we have been getting for last few weeks. This is positive for global equities. As far as Indian equities are concerned this report will be considered neutral as Indian stocks are hugely overstretched and need a powerful trigger to move up substantially from here which this report does not provide.

Amit Goel, Co-Founder & Chief Global Strategist, Pace 360.

Route – Tender

Buyback Price: 4150/-

Current Market Price: 3603.35/-

Market Cap: Rs 13,18,484 crores

Buyback Size: ₹17,000 Crs (representing 1.12% of the total paid-up equity share capital)

Buyback Size: 4,09,63,855 shares (representing 2.12% of O/s. shares)

Retail Quota: 61,44,578 Shares

Entitlement:

General Category - 2 Equity Shares for every 209 Equity Shares held on the Record Date

Retail Category - 1 Equity Share for every 6 Equity Shares held on the Record Date

Buyback Record Date: 25 November 2023

Tender Period:

Start Date - 01 December 2023

Close Date - 07 December 2023 (Today)

Obligation Date - 13 December 2023

Settlement Date - 14 December 2023

Route – Tender

Buyback Price: 770/-

Current Market Price: 737.35/-

Market Cap: Rs 11,460 crores

Buyback Size: ₹ 652.81 Crs (representing 7.90% and 7.80% of the fully paid-up Equity Share capital and free reserves)

Buyback Size: 84,78,100 shares (representing 5.46 % of O/s. shares)

Retail Quota: 12,71,715 Shares

Entitlement:

General Category - 3 Equity Share for every 58 Equity Shares held on the Record Date

Retail Category - 4 Equity Share for every 51 Equity Shares held on the Record Date

Buyback Record Date: 24 November 2023

Tender Period:

Start Date - 01 December 2023

Close Date - 07 December 2023 (Today)

Obligation Date - 13 December 2023

Settlement Date - 14 December 2023

Persistent Systems clinched four 2023 ISG Star of Excellence Awards in Universal Industry, Cloud Native, BFSI, Healthcare and Pharmaceuticals categories. The awards acknowledged the company for delivering technology solutions and end-user experiences. Shares were up by 0.07% to Rs 6343, on the BSE.

Knowledge Marine & Engineering Works Ltd’s subsidiary, Knowledge Dredging Co. W.L.L. in Bahrain, obtained a Sand Mining License from the Ministry of Industry and Commerce, starting January 2024. The shares were up by 4.64% to Rs 1468, on the BSE.

1. Oil and natural gas corporation (2.50%), 

2. Hindustan Unilever (2.27%), 

3. Bharti Airtel (1.21%), 

4. ICICI Bank (1.07%), 

5. Bajaj Finance (1.13%)

1. Adani ports and special economic zone (1.72%), 

2. Power Grid corporation of India (1.23%), 

3. Dr. Reddy laboratories (1.50%), 

4. Adani enterprises (1.45%), 

5. SBI life insurance company (1.43%)

Crude oil futures traded higher on Thursday morning as the top leaders of Saudi Arabia and Russia were seen discussing cooperation on oil prices during Russian President Vladimir Putin’s visit to Saudi. Both these nations are the important members of OPEC (Organisation of the Petroleum Exporting Countries) and its allies, known as OPEC+. At 9.14 am on Thursday, February Brent oil futures were at $74.65, up by 0.47 per cent; and January crude oil futures on WTI (West Texas Intermediate) were at $69.77, up by 0.56 per cent. December crude oil futures were trading at ₹5837 on Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning against the previous close of ₹5820, up by 0.29 per cent; and January futures were trading at ₹5894 as against the previous close of ₹5874, up by 0.34 per cent.

1. DELTACORP

2. IBULHSGFIN

3. INDIACEM

4. SAIL

5. ZEEL

Price band revised from 10% to 20%: Fertilizers and Chemicals Tranvacore, Focus Lightening and Fixtures, Hardwyn, Olectra Greentech, Orchid Pharma, PC Jeweller, Senco Gold, Tatva Chintan pharma chem. 

Price band revised from 20% to 10%: Adani Green, Adani Total Gas.

Price band revised from 5% to 10%: Axiscades Technologies, Dhani Services, Kamdhenu Ventures, KPI Green Energy, MMTC, Nagarjuna Fertilizers and Chemicals, Patanjali foods, Premier Explosives, PTC Industries, Sanghi Industries, Thomas Cook. 

Price band revised from 5% to 20%: Axita Cotton, Brightcom Group, Patel Engineering.

Move into a short-term ASM framework: Cantabil Retail India, Datamatics Global Services, 

Move out of short-term ASM framework: Sequent Scientific.

Choice International: Promoter group Patodia Properties bought 1.25 lakh shares on Dec. 4. Promoter group NS Technical Consultancy bought 4.25 lakh shares on Dec. 5. 

Advanced Enzyme Technologies: Promoter group Advanced Vital Enzymes sold 1.08 lakh shares between Dec. 4 and 5.

Computer Age Management Services: Promoter Great Terrain Investment sold 97.59 lakh shares on Dec. 4. 

Ethos: Promoter Mahen Distribution sold 2.01 lakh shares between Dec. 4 and 5. 

Cigniti Technologies: Promoter CV Subramanyam sold 10,000 shares on Dec. 4. 

Pledge Share Details

Genus Power: Promoter Kailash Chandra Agarwal created a pledge of 22 lakh shares on Dec. 1. 

Kuantum Papers: Promoter Kapedome Enterprises revoked a pledge of 1.84 crore shares on Dec. 6.

Ethos: Mahen Distribution sold 3.48 lakh shares (1.49%) and Eastspring Investments India Consumer Equity Open bought 1.25 lakh shares (0.53%) at Rs 1,872 apiece. 

Advance Enzyme Tech: Advanced Vital Enzymes sold 6.18 lakh shares (0.55%) at Rs 359.25 apiece. 

Kesoram Industries: Morgan Stanley Asia Singapore Pte bought 21.32 lakh shares (0.68%) at Rs 154.17 apiece. 

JTL Industries: Pranav Vijay Singla bought 9.14 lakh shares (0.53%) at Rs 200.62 apiece and Societe General bought 17 lakh shares (0.99%) at Rs 196.78 apiece. Build Ash Constructions LLP sold 50 lakh shares (2.93%) at Rs 195.82 apiece, Kusum Bansal sold 13.8 lakh shares (0.81%) at Rs 196.36 apiece, Shilpa Bansal sold 13.45 lakh shares (0.79%) at Rs 196.99 apiece, Mohinder Pal sold 19.08 lakh shares (1.12%) at Rs 200.25 apiece, Mukesh Kumar sold 50 lakh shares (2.93%) at Rs 199.23 apiece, BNP Paribas Arbitrage sold 9.59 lakh shares (0.56%) at Rs 200.29 apiece, and Shilpa Bansal sold 32 lakh shares (1.87%) at Rs 204.03 apiece.

Shalimar Paints: Shivang Jhunjhnuwala, Sarika Jhunjhnuwala, Surya Kumar Jhunjhnuwala, Ritu Jhunjhnuwala, and Gaurang Jhunjhnuwala sold 74.08 lakh shares (8.84%) and Hella Infra Market bought 32.83 lakh shares (4.54%) between Rs 178 and 180.1 apiece. 

Capacite Infraproject: Infinity Asset Advisors Private Limited sold 6.05 lakh shares (0.82%) at Rs 255.31 apiece. 

Swan Energy: 2I Capital PCC sold 15.9 lakh shares (0.6%) at Rs 437.51 apiece. 

TV18 Broadcast: Quant Mutual Active Fund bought 10.7 lakh shares (0.62%) at Rs 55.32 apiece.

Adani Ports and Special Economic Zone: The company will consider a proposal to raise funds through a bond issue in its board meeting on Dec. 12.

Vedanta: The company’s subsidiary Hindustan Zinc Board approved a second interim dividend of Rs 6 per equity share for FY24, amounting to Rs 2,535 crore.

Hindustan Unilever: The board approved the appointment of Tarun Bajaj as an independent director.

IDFC First Bank: Madhivanan Balakrishnan resigned as Executive Director w.e.f. Dec. 6.

Rites: The company signed an MoU with Meghalaya Industrial Development Corp. for developing multi-modal logistics projects.

Brigade Enterprises: The company signed a joint development agreement for office space in Bangalore with a development value of Rs 500 crore.

PVR-INOX: The company opened a 4-screen multiplex at Gwalior; with this, the company now operates the largest multiplex network with 1,709 screens across 358 properties in 113 cities.

Alok Industries: The company entered into facility agreements with SBI to avail of a Rs 1,750 crore loan to repay existing debt and a Rs 90 crore loan to meet working capital requirements.

Sharda Cropchem: Appointed Shailesh Anant Mehendale as CFO w.e.f. Dec. 6.

Jtekt India: The company has approved capacity expansion for MS-Gear Line from 2.0 million to 2.4 million.

Bharat Electronics: The company received orders worth Rs 3,915 crore for the supply of various defence equipment.

Ircon International: Government to sell an 8% stake via OFS at a floor price of Rs 154 per share, 4% of which includes base size and green shoe of 4%. OFS to non-retail to open on Dec. 7 and for retail on Dec. 8.

Delta Corp: The High Court of Calcutta has granted interim relief to subsidiary Deltatech Gaming of Rs 6,384 crore for which a GST notice was sent in October.

Network18 Media & Investments: The company will merge its television and digital news businesses with itself. Under the scheme of amalgamation, TV18 Broadcast shareholders will get 100 fully paid-up equity shares of Rs 5 each of Network18 for every 172 equity shares held in the broadcast company.

Dr. Reddy’s Laboratories: The drugmaker and Coya Therapeutics entered into a collaboration for the development and commercialization of COYA 302, an investigational combination therapy for the treatment of Amyotrophic Lateral Sclerosis. The company will make an upfront payment of $7.5 million to Coya for the development and commercialisation deal, and the company will obtain commercialization rights for COYA 302 in the U.S., Canada, the EU, and the U.K.

One 97 Communications: The company expands its credit distribution business to enhance focus on higher-ticket loans for consumers and merchants in partnership with banks and NBFCs.

Gautam Adani-led Ambuja Cements and ACC plans to meet 60 per cent of its power required through renewable energy by 2028.

“We are committed to powering 60 per cent of our cement production with renewable energy sources by 2028. This ambitious goal will establish us as a frontrunner in the global arena of sustainable cement production,” he said in X (formerly Twitter).

Ambuja and ACC are leading a sustainable revolution in the cement industry with over 90 per cent of cement production is now blended cements recycling waste fly ash and slag, he said.

This significant shift not only enhances the environmental footprint of our cement but also marks a substantial step towards sustainability, he added.

Macquarie on Sun Pharma

Macquarie on HDFC Bank

MS on HCL Tech

MS on Power Grid

Jefferies on SBI Cards

MS on BEL

MS on AB Capital

MS on PayTM

Jefferies on PayTM

Macquarie on HUL

Jefferies on HUL

JP Morgan on PayTM

Mehta Equities Ltd | pre-opening market comment by Prashanth Tapse - 07 Dec 2023

PFB the pre-opening market comment by Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd

“This Thursday morning brings two positive developments: WTI Oil hits a 5-month low at $70.70 a barrel, affecting stocks like Asian Paints and Indigo, while the 10-year US Treasury yields drop to 4.415, favoring IT & Software stocks. With positive global cues, Nifty may see its 8th consecutive day of gains, maintaining a winning streak through December. The focus is on Nifty’s psychological 21,000 mark, and from a technical standpoint, corrective declines to 20,801 are expected to find support, but hurdles lie at 21,000. Options data suggests a trading range of 20100-21200, with resistance at 21000. Economic catalysts include the RBI’s MPC meeting and Friday’s US Nonfarm Payrolls. In summary, Nifty bulls aim to explore new territories. The preferred trade for Nifty (20938) is to buy between 20800-20850, with a stop at 20531, targeting 21000/21113, and aggressive targets at 21500. For Bank Nifty (46835), the recommendation is to buy between 46100-46300, with a stop at 44501, targeting 47311/47501, and aggressive targets at 47801-48000.”

Silver experienced a drop, likely due to profit booking, as traders speculated on the conclusion of major central banks’ tightening campaigns and attempted to gauge the timing of interest rate cuts. The market sentiment was influenced by data indicating a smaller-than-expected increase in U.S. private sector employment, fostering optimism that the Federal Reserve might commence rate cuts in the early part of the next year.

German Industrial Production m/m, Revised GDP q/q from Euro Zone and Unemployment Claims, Final Wholesale Inventories m/m from US Zone.

Gold prices, trading near $2030, have been influenced by a softer dollar as traders bet on the end of the tightening campaigns by major central banks and attempt to assess the timing of interest rate cuts. Earlier in the month, gold reached a record high as speculation grew that the Federal Reserve would initiate monetary easing in the coming year. This sentiment is supported by signs of a cooling U.S. labor market, including a decline in job openings and lower-than-expected private employment figures.

Coal India to use popular Japanese technique to increase forest cover in Chhattisgarh.

Alok Industries enters into facility agreements with SBI

Mahindra & Mahindra will raise prices of its passenger and commercial vehicles from January 2024 

Dr Reddy’s Laboratories and Coya Therapeutics, Inc. enter into an exclusive collaboration for development and commercialisation of COYA 302 

Warburg Pincus offering 17.5 mn shares of Bharati Airtel at floor price of ₹1,005/share

Quant mutual fund bought 1.07 crore of TV 18 Broadcast at Rs 55.32 a share

RITES has entered into a MoU with MIDC to develop multi-modal logistics projects in Meghalaya

Shree Cement plans to bid for lithium mining rights under a government plan to secure critical minerals production through auctions

Oil downstream stocks in focus as WTI falls below $70/bbl for first time since early July

HCL Tech partners with Husqvarna Group for digital transformation 

Bharat Electronics bags two defence equipment orders worth Rs 3,915 crore

Brigade Enterprises signs a joint development agreement to develop a ‘Grade A’ Office space in Bengaluru’s CBD with development value of ₹500 crore

Jupiter Wagons Ltd., which is into providing mobility solutions through rail, road and marine transportation said it has raised ₹403 crore through Qualified Institutional placement (QIP).

Gautam Adani on X (formerly Twitter):

Ambuja & ACC are leading a sustainable revolution in the cement industry. Over 90% of our cement production is now blended cements recycling waste fly ash and slag. This significant shift not only enhances the environmental footprint of our cement but also marks a substantial step towards sustainability. Additionally, we are committed to powering 60% of our cement production with renewable energy sources by 2028. This ambitious goal will establish us as a frontrunner in the global arena of sustainable cement production

“The net cash outgo in the Supplementary Demand for Grants is moderate, and could be matched by savings in other departments. This does not suggest a risk of the fiscal deficit target being overshot.”

Network18 Media & Investments Ltd (Network18) and TV18 Broadcast Limited has announced a Scheme of Arrangement in terms of which TV18 and e-Eighteen.com Limited, which owns and operates moneycontrol website and app, will merge with Network18. The proposed scheme will consolidate TV and digital news businesses of the Network18 group and will help create India’s largest platform-agnostic news media company. Share exchange ratio: 100 shares of Network18 for every 172 shares of TV18; 19 shares of Network18 for every 1 share of E18.

Nework18, Ircon International, RITES, BEL, Paytm, Muthoot Captial, Brigade Enterprises, Associated Alcohols, IndiaMart InterMesh, Timex, HCC, Puravankara, Servotech, Dr Reddy’s Lab, Alok Industries

Kothari Petrochemicals has informed the exchanges that operations of its factory at Manali Industrial Area in Chennai have been temporarily disrupted due to the cyclone. The company is taking the necessary steps to drain out the water logging, and it will take another couple of days to drain out the water and the plant operations are likely to start by December 12, per the company. 

There is no material impact on the financial position of the company. The factory is adequately covered by insurance and machinery damages, if any, would be claimed through the policy coverage, it added.

With this, Knowledge Marine and Engineering Works has become the first Indian company to secure such contract in Bahrain, per reports. 

One97 Communications Limited (OCL), which owns Paytm, on Wednesday, said that it is consciously pruning its loan disbursals below ₹50,000. At the same time, this fintech major has decided to expand its credit distribution business so as to enhance focus on higher ticket loans for consumers and merchants.

This comes days after the Reserve Bank of India (RBI) increased the risk weights — the capital that banks need to set aside for every loan disbursed — for banks and NBFCs by 25-125 per cent on retail loans.

• DELTACORP

• IBULHSGFIN

• INDIACEM

• SAIL

• ZEEL

Deal size is $100 m, floor price at Rs 85.7/share

Lock up of 45 days on further sale of shares

IDFC First Bank advanced 1.34% to Rs 90.45 on NSE on Wednesday.

Dollar General Corporation (Pre market) (Sector-Retail)

Broadcom Inc. (Post market) (Sector-Technology)

lululemon athletica inc.(Post market) (Sector-Retail)

The Cooper Companies, Inc.(Post market) (Sector-Medical device)

Bank of Montreal (Tent) (Sector-Finance)

TENT CHINA Trade Balance (Expected: 380B versus Previous: 405B)

15:30 EURO Revised GDP q/q (Expected: -0.1% versus Previous: -0.1%)

19:00 U.S. Unemployment Claims (Expected: 221K versus Previous: 218K)

Current: 103k 

Expected: 131k 

Previous: 113k 

(Data seen lower than estimates, negative for US Dollar)

Turnover : (NSE + BSE) 

Cash Volume : 96596.89 + 8788.44 Total : 105385.33 

F&O Volume : 57538237 + 117701.28 Total : 57655938.28

Provisional Cash Rs. In Crs.

FII/FPI (11836.42 - 11916.3) NET SELL: -79.88 

DII (12323.18 - 10951) NET BUY: 1372.18

Interview:

Brigade Ent: Pradyumna Krishna Kumar, Executive Director

Potential Ticket Size Of Mysore Luxury Residential Project Is Approx ?1.cr: Brigade Group

https://www.youtube.com/watch?v=Wc5H0EVckPg

Borosil .: Shreevar Kheruka, MD & CEO

Borosil Ltd: Margin, Exports, Listing, Demerger & More

https://www.youtube.com/watch?v=VWWFfGMzVRY

Gokaldas Export: Sivaramkrishnan Ganapathi, MD

Gokaldas Exports: Long Road To Recovery For Exports?

https://www.youtube.com/watch?v=N6aiscBxvLs

KPIT: Kishore Patil, MD & CEO

Legacy Part Of The Business Will Decline & New Technology Will Take Over: KPIT Tech

https://www.youtube.com/watch?v=FO2754gDNWU

Mahanagar Gas: Ashu Singhal, MD

Have Seen A 4% Increase In Volumes In Q3 So Far: Mahanagar Gas

https://www.youtube.com/watch?v=kyPEsnizF_Q

NHPC: Rajendra Prasad Goyal, CMD

Have Installed 7,000 MW Capacity, Will Double Capacity By FY27: NHPC

https://www.youtube.com/watch?v=ieugR4fzsbk

Star Health and Allied Insurance: Nilesh Kambli, CFO

Ratio Has Stabilised After The Spike In Seasonal Illnesses: Star Health Insurance

https://www.youtube.com/watch?v=RNAlK7wtXhw

Stove kraft: Rajendra Gandhi, CMD

Retail Revenue Has Doubled Vs Last Year: Stovekraft

https://www.youtube.com/watch?v=7OVpJ29w-8Y

United Brewerie: Vivek Gupta, MD&CEO

Expect Beer Segment To Grow In Mid-To-High Single Digits: United Breweries

https://www.youtube.com/watch?v=YPTeK6vWoX4

Bharat Elec: Bhanu Shrivastava, CMD

Have Received Orders Worth ?16,300 Crore So Far: BEL

https://www.youtube.com/watch?v=6IzIbPZu5iU

Events today…

https://www.researchbytes.com/Default.aspx?cc=event

Results today…

https://www.researchbytes.com/Default.aspx?cc=result

The upmove in the stock of Shyam Metallics and Energy is gaining momentum. The outlook is bullish. The strong surge over 6 per cent on Wednesday strengthens the bullish case. This rise has taken the share price well above the key resistance level of ₹485. The region between ₹485 and ₹480 will act as a very good support now. Dips to this support zone are likely to get fresh buyers and limit the downside.

Here are the intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS and SBI 

Equities in Asia mirrored weakness on Wall Street while Treasuries steadied following a rally after fresh data indicated labour market softness. Oil led a slump in commodity prices, per a Bloomberg report. 

Equities in Japan and Australia opened lower while futures contracts for Hong Kong benchmarks also slipped. That followed a third daily decline for the S&P 500, its longest stretch of losses since October. US futures were little changed in early Asian trading.