Sensex, Nifty end marginally lower; media stocks gain 4%

3.42 pm

Closing bell: Equity indices inched lower on Thursday as investors booked profits after the government said it had approved stake sales in some public sector undertakings. The Zee Entertainment Enterprises surged over 11 per cent on the promoter group's plan to divest holdings.

The NSE Nifty 50 index fell 0.29% to 11,964.05, while the S&P BSE Sensex ended down 0.19% at 40,575.17.

The Sensex hit an intraday high of 40,744.85 and a low of 40,534.12. Similarly, the Nifty touched an intraday high of 12,028.20 and a low of 11,956.90. The market breadth was negative as 1,453 shares declined, against advance of 1,103 shares, while 205 shares were unchanged.

At close, the biggest gainers in the Nifty pack were Zee Entertainment, Eicher Motors, Dr Reddy's, Adani Ports and Hindustan Unilever, rising up to 11.73 per cent.

While, BPCL, Coal India, Tata Steel, Yes Bank and Bharti Airtel were the top losers, shedding up to 5.97 per cent.

3.18 pm

Nifty sectoral indices at 3.15 pm

 

3.02 pm

SmartOwner launches SEBI compliant realty portfolio management services

SmartOwner, property investment firm, has launched SmartOwner Portfolio Management Services - a SEBI-registered real estate investment that combines regular cash flows with the attractive growth potential.

SmartOwner brings together the financial expertise of a large PE fund, the legal expertise of a major law firm, and the real estate expertise of a top developer onto a common platform to give real estate investors access to exclusive high-return opportunities that are normally the domain of large financial institutions. The company by carefully selecting the assets across the fastest growing sectors of real estate, this diversified portfolio is structured to deliver maximum profitability and superior risk mitigation.

2.40 pm

Media stocks continue to rise for the second day; up 3%

Media shares were trading with gains for the second consecutive day on Thursday led by Zee Entertainment gaining over 12 per cent.

As media mogul Subhash Chandra finally agrees to give up control over Zee Entertainment by deciding to sell his 16.5 per cent stakes in the company, investors are already flocking in. The issue has already been oversubscribed nearly three times, Chandra's son Punit Goenka said in a statement.

“I am overwhelmed by the positive response received from our investors. Glad to share that the book was oversubscribed by approximately three times. I am grateful to our lenders and investors for their trust and support. I remain committed to elevating ZEE to a global media & entertainment powerhouse”, Punit Goenka, MD & CEO, ZEE Entertainment Enterprises, said.

Also, Japan's Sony Corp is in talks to acquire a stake in Mukesh Ambani's TV business, Network18 Media & Investments Ltd, Bloomberg reported on Thursday. Sony is doing the due diligence and considering several potential deal options, the agency reported, citing people familiar with the matter. The shares of Network18 has risen 11.46 per cent (at 2.30 pm) to trade at Rs 28.70.

Shares of Balaji Telefilms (up 9.23 per cent), Jagran Prakashan (up 7.51 per cent), Music Broadcast (up 6.5 per cent) and Zee Media Corporation (up 4.43 per cent) were the top gainers in the media index.

TV18 Broadcast (up 3.52 per cent), TV Today Network (up 1.35 per cent), PVR (up 1.35 per cent), Saregama (up 1.25 per cent) and Hathway Cable (up 1.01 per cent) too were trading higher.

The Nifty Media index was trading 3.73 per cent up at 1,932.70 at 2.30 pm.

Benchmark NSE Nifty50 index was down 7.70 points at 11,991.40 while the BSE Sensex was up 37.09 points at 40,688.73.

2.05 pm

Strategic sale in 5 PSUs: Government has no business to be in business, says Pradhan

A day after the Cabinet decided to shed the Centre’s holding in five public sector undertakings, Minister for Petroleum and Natural Gas, and Steel, Dharmendra Pradhan reiterated his stand that the government should not be operating businesses in sectors that are self-sustaining. Read more here

1.55 pm

Nifty Call: Tread with caution as it trades around a key level

After the sell-off in the latter part of yesterday’s session, the November futures contract of the Nifty 50 index declined in the initial hour of trade today. However, it has recovered from its intraday low of 11,982 and is currently trading around the important level of 12,000. On Wednesday, the index tested the upper boundary of the 11,835-12,070 range (at 12,066). Read more on the technicals here

1.05 pm

JSW group promoter Sajjan Jindal repays ₹200-cr debt

Sajjan Jindal, the promoter of JSW Group, has released pledged shares of JSW Steel and JSW Energy worth ₹200 crore. He has so far repaid ₹3,000 crore of loan in four tranches.

In his fifth tranche, Vividh Finvest, a promoter group company, on Thursday repaid loan to release 72 lakh of JSW Steel shares (accounting for 0.30 per cent of the paid up capital) and JSW Investments repaid debt to release 4.03 crore shares of JSW Energy (accounting for 2.45 per cent of paid up capital). Read more here

1 pm

Power generation declines 13 per cent in October

Electricity generation, as well as trading of power in the exchanges, have dipped in October, reflecting weakness in the Indian economy.

According to a report by brokerage house Motilal Oswal, conventional electricity generation declined 13 per cent on a year-on-year in the month of October. Demand from the western region was significantly down 20 per cent and from the south too mirrored a similar trend with a reduced generation of 14 per cent YoY. Read more here

12.25 pm

Broker's call: Bandhan Bank (Buy)

JMFL

CMP:₹525.35

Target:₹710

With respect to complying with RBI guidelines on promoter stake reduction, the bank continues to engage with the regulator having swiftly reduced promoters’ stake to 60.96 per cent (as of October 21, 2019), though still away from what is required. The management mentioned that in the absence of regulatory a go-ahead for collapsing the three-tier structure, the option to reduce stake through inorganic means is not on the table (given that the Gruh-merger gives them the desired diversification) and the bank does not need primary capital (CET1 at 28.45 per cent including 1HFY20 profits).

With regards to a secondary stake sale, nothing is currently being considered given that it continues to engage with the regulator. In our view, it is pertinent to note that Bandhan Bank has a history of having long-term shareholders with a focus to satisfy developmental needs in emerging economies and management still seems inclined towards such partners in the business. We continue to like Bandhan for strong track record on profitability, asset quality and efficiency.

In our view, Bandhan Bank has a strong growth runway and the Gruh merger gives it a much-need diversification while ensuring stability and compliments the business model.

12.10 pm

Broker's call - ITD Cementation (Buy)

ANANDRATHI

CMP: ₹58.65

Target: ₹74

Key takeaways: a) The about ₹1,000 crore Q1 additions were followed by about ₹1,900 crore in Q2, with L1 for about ₹2,000 crore  already in Q3. With this, ITD is in touching distance of its 15-month FY19 addition of about ₹5,100 crore. The about ₹13,000 crore healthy prospects suggest more is likely in the rest of the year. Year-to-date additions, though diversified, seem to be lacking marine; consequently, marine’s share in the OB is now below 30 per cent.

b) The about ₹16,100 crore lower q-o-q consolidated net debt (at about ₹460 crore), despite sequentially flat standalone net debt implies the Bengaluru metro-rail SPV generated positive cash-flows to effect the lower debt. This augurs well as there were concerns about this zero-margin project (post lowered scope) generating cash flows to meet obligations.

c) Without quantifying, management reiterated that contingency reserves and the various insurances availed of would cover any additional costs it mayface because of the issue at hand. With regard to time over-run (and, consequently, higher costs), it hopes to be reimbursed by the client.

Valuations: FY20e earnings have been reduced around 17 per cent (around 7 per cent for FY21) as we lower our margin expectation.

Risk: Slower-than-expected execution.

11.58 am

Redington India announces 75% interim dividend

Redington India on Thursday announced 75 per cent interim dividend. The board of directors approved an interim dividend of Rs 1.50 per equity share on the face value of Rs 2 to be paid on or before December 19.

The record date has been fixed as December 4 for determining the eligible shareholders entitled to receive the interim dividend.

11.45 am

Zydus gets USFDA nod for heart, skin drugs

Zydus Cadila has received the final approval from the USFDA to market lsosorbide Dinitrate Tablets in the strengths of 5 mg, 10 mg, 20 mg, 30 mg and 40 mg.

The drug is used to prevent attacks of chest pain (angina). lt dilates the blood vessels, making it easier for blood to flow and more comfortable for the heart to pump. It will be manufactured at the group’s formulations manufacturing facility at Baddi.

It had also received the final approval for Desonide Cream 0.05%. The drug is a mild corticosteroid, used to treat a variety of skin conditions to reduce swelling, itching and redness that can occur in these types of conditions. It will be manufactured at the group’s topical manufacturing facility at Ahmedabad.

 

11.20 am

Conservative approach was a conscious choice, says CUB chief

BusinessLine spoke to N Kamakodi, Managing Director and Chief Executive Officer of City Union Bank on the eve of its Foundation Day celebrations. Here are the exited excerpts

11.13 am

OnMobile, Gionee tie-up to build and manage mobile entertainment ecosystem

OnMobile Global Limited partners with Gionee, owned by the Jaina Group, to launch its contest platform to provide an intuitive and rewarding experience to Gionee users.

With the sole purpose to increase engagement and generate incremental revenue for Gionee, OnMobile will launch its intuitive mobile entertainment platform.

Gionee, known for its new generation of mobile phones which redefines life in every way has entered into an agreement with OnMobile to launch its portfolio of products including contests, games, themes, tones, and videos.

11.05 am

Maruti’s premium hatchback Baleno celebrates 4th anniversary

Maruti Suzuki NEXA’s premium hatchback Baleno celebrates its 4th anniversary with over 6.5 lakh happy customers.

Launched in October 2015 and a true symbol of ‘Make in India,’ the premium hatchback Baleno has enjoyed unparalleled leadership in its segment. Customers are delighted upon driving the Baleno owing to its unique Liquid Flow Design, Best in a class cabin, cutting edge technology features packed with class-leading safety.

Aligning to its customer demands, new Baleno with the Next Generation Smart Hybrid technology was introduced in January 2019 offering Idle Start-Stop (ISS) and power regeneration. Baleno is also the country’s first BS6 compliant premium hatchback.

 

10.55 am

Sony in talks to buy stake in Network18 Media

Japan's Sony Corp is in talks to acquire a stake in Indian billionaire Mukesh Ambani's TV business, Network18 Media & Investments Ltd, Bloomberg reported on Thursday.

Sony is doing the due diligence and considering several potential deal options, Bloomberg reported, citing people familiar with the matter.

Ambani's Reliance Industries and Sony did not immediately respond to Reuters' requests for comment.

10.40 am

Centre approves Industrial Relations Code Bill

The Centre approved on Wednesday the Industrial Relation Code Bill, which is the third code under labour reforms.

The government wants to codify 44 central labour laws into four broad codes.

While Parliament has already approved the Code on Wages, the Labour ministry will push the Code on Occupational Safety, Health and Working Conditions Bill in the Budget session. The Code on Social Security is in the pre-legislative stage.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval for introduction of the Industrial Relations Code, 2019, in Parliament, an official statement said. Read more here

10.20 am

Why the BPCL share price is falling after divestment announcement

The share price of BPCL, one of India’s largest public sector oil refineries, has shown a muted response to an announcement by the government to divest its entire stake in the company. BPCL’s share price declined by 2.74 per cent to Rs 529 after the market opened on Thursday. The key reason is the anticipation of a lower valuation for BPCL's Numaligarh Refinery.

Analysts told BusinessLine that BPCL’s overall valuation could be impacted as the company’s Numaligarh Refinery (NRL) would be carved out, to be taken over by another PSU.

10.17 am

Zee oversubscribed as Subhash Chandra sells his 16.5% stake

As media mogul Subhash Chandra finally agrees to give up control over Zee Entertainment by deciding to sell his 16.5 per cent stakes in the company, investors are already flocking in.

The issue has already been oversubscribed nearly three times, Chandra's son Punit Goenka said in a statement.

“I am overwhelmed by the positive response received from our investors. Glad to share that the book was oversubscribed by approximately 3 times. I am grateful to our lenders and investors for their trust and support. I remain committed to elevating ZEE to a global media & entertainment powerhouse”, Punit Goenka, MD & CEO, ZEE Entertainment Enterprises, said.

10.09 am

As rupee consolidates, adopt range-trading strategy

The rupee (INR) closed lower on Wednesday at 71.81 compared to its previous close of 71.71 against the dollar (USD). The Indian currency is consolidating within a range between 71.6 and 72. Though the bias remains bullish as long as it stays above 72, only a breakout of the resistance at 71.6 can establish an uptrend. Read more the technicals here

9.55 am

Subhash Chandra to give up control of Zee Entertainment

Subhash Chandra is set to lose control of Zee Entertainment. The promoters of Essel group on Wednesday announced the selling of a 16.5 per cent stake in Zee Entertainment (ZEEL) to financial investors, including OFI Global China Fund, in a move to repay its debt.

9.50 am

Dhunseri tea eyes African estates

Dhunseri Tea and Industries, which recently completed the sale of its branded business to Tata Global Beverages (TGBL), is exploring possibility of acquiring tea estates in Africa.

According to CK Dhanuka, Chairman, Dhunseri Tea, the company will look at assets in Africa if the pricing is attractive. The company produces close to 21 million kg (mkg) of tea through its estates in India and Africa. Read more here

9.40 am

SEBI ensures portfolio managements services only for high net worth investors

The decision of the Securities and Exchange Board of India (SEBI), to tighten norms for portfolio managements services (PMS), will ensure that only well-informed investors will participate in high-risk product offerings, said an expert.

Lav Chaturvedi, ED and CEO, Reliance Securities said, "SEBI's decision to increase the net worth criteria for PMS  is a welcome move which is more to do keeping in mind investors safety and ensure there are serious players in the industry. Second, increasing ticket size will ensure only well informed investors will participate in the high risk products offerings."

On Wednesday, SEBI announced that the net-worth criteria for portfolio managers will now be Rs 5 crore instead of Rs 2 crore, that was announced earlier. Those below Rs 5 crore net-worth will not be registered with SEBI. This would affect thousands of portfolio managers across India, experts said.

9.35 am

What to Watch: Philippine bank picks Intellect Design tool

Intellect Design Arena on Wednesday said Philippines Business Bank has chosen to deploy its Digital Core solution, IDC 19.1. The company is geared to implement IDC 19.1, aimed at accelerating the bank's digital transformation initiatives to drive its vision of building a broad economic base for SMEs and making banking services accessible to them. However, Intellect Design did not disclose the order size. Shareholders will monitor other details and execution of the project.

9.30 am

Will RIL hit ₹10-lakh-cr in market cap today?

All eyes are on Reliance Industries as it nears the ₹10-lakh-crore mark. At the close of Wednesday’s trading, the company’s market capitalisation stood at ₹9.8 lakh crore. RIL’s stock rose 2.47 per cent to close at ₹1,547.05 on the BSE. During the day, it jumped 4.1 per cent to ₹1,571.85 — its record high. If the stock hits ₹1,579, the market-cap will hit ₹10 lakh crore. Though some analysts advice caution on the stock, market participants believe Reliance Industries will reach the coveted level.

9.25 am

Rupee opens on a flat note on Thursday depreciating two paise to 71.83 against the US dollar.

9.20 am

Opening bell: Equity indices opened on a flat note on Thursday.  The Asian markets are trading weak as a fresh row between Washington and Beijing over US bills on Hong Kong could complicate their trade negotiation.

As per Reuters report, the US House of Representatives on Wednesday passed bills intended to support protesters in Hong Kong and send a warning to China about human rights.

At 9.15 am, the Sensex is up 3 points at 40,654.66, while Nifty is up 9.50 points at 12,008.60. About 457 shares have advanced, 290 shares declined, and 44 shares are unchanged.

All the sectoral indices are trading flat, except for media index, which is up 5.43 per cent.

9.14 am

Centre clears strategic divestment in five PSUs

The Centre on Wednesday gave in-principle approval for strategic disinvestment of the government shareholding in five public sector enterprises along with management control.

These five PSUs are Bharat Petroleum Corporation Ltd (BPCL); Shipping Corporation of India; Container Corporation of India; Tehri Hydro Power Development Corporation (THDCIL), and North Eastern Electric Power Corporation Ltd (NEEPCO). Read more here

9.08 am

Crude oil dips on worries US-China trade deal could slip to next year

il prices retreated on Thursday as a spat over Hong Kong added to worries of a delay in any US-China trade deal, after posting steep gains in the previous session on bullish U.S. crude inventory data.

The trade war between the world's two biggest economies has dominated the outlook for future oil demand, and trade experts have warned the completion of a “phase one” U.S.-China trade deal could slip into next year.

Brent crude futures fell 25 cents, or 0.4%, to $62.15 a barrel by 0138 GMT. The international benchmark rose 2.5% on Wednesday. Read more here

9.05 am

Day Trading Guide for November 21, 2019

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹1273 • HDFC Bank

S1

S2

R1

R2

COMMENT

1260

1247

1285

1300

Fresh long positions can be initiated with a tight stop-loss if the stock rebounds up from ₹1,260 levels

 

₹712 • Infosys

S1

S2

R1

R2

COMMENT

705

695

722

732

Initiate fresh long positions with a stiff stop-loss if the stock of Infosys moves beyond ₹722 levels

 

₹250 • ITC

S1

S2

R1

R2

COMMENT

247

244

253

256

The stock tests a key support at current levels. Go long with a fixed stop-loss on a strong rally above ₹253 levels

 

₹133 • ONGC

S1

S2

R1

R2

COMMENT

130

127

136

139

Fresh short positions are recommended with a fixed stop-loss only if the stock declines below ₹130 levels

 

₹1547 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1530

1514

1560

1575

Make use of intra-day dips to buy the stock of RIL while maintaining a stiff stop-loss at ₹1,530 levels

 

₹328 • SBI

S1

S2

R1

R2

COMMENT

322

313

336

343

Initiate fresh short positions with a tight stop-loss only if the stock of SBI declines below ₹322 levels

 

₹2108 • TCS

S1

S2

R1

R2

COMMENT

2090

2060

2130

2150

The stock was choppy testing a key support last session. Go short with a fixed stop-loss on a fall below ₹2,090 levels

 

12018 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

11970

11920

12070

12120

Consider initiating fresh long positions with a tight stop-loss if the contract advances above 12,070 levels

 

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

9.03 am

Today's Pick - Zee Entertainment Enterprises (₹307.1): Buy

Investors with a short-term horizon can buy the stock of Zee Entertainment Enterprises (ZEEL) at current levels. The stock jumped 7.5 per cent accompanied by above average volume and managed to close above a key resistance at ₹300. Read the full technicals here

9 am

Asian shares slide as China-US spat on Hong Kong clouds trade deal outlook

Global shares slid on Thursday as a fresh row between Washington and Beijing over U.S. bills on Hong Kong could complicate their trade negotiation and delay a ”phase one” deal that investors had initially hoped to be inked by now.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.16% while Japan's Nikkei dropped 0.25%. Read more here

Published on November 21, 2019