Sensex, Nifty Highlights on December 1: Market indices closed majorly positive on Tuesday, amid strong Asian equities, bouyed by release of key economic data on the domestic front. Sensex ended 505 points higher to 44,655 and Nifty rose by140 points to 13,109. Today BSE's market cap has reached a highest ever peak of Rs 1,76,22,306.71 crore. Investor risk sentiment improved after positive macro-economic data released on the domestic front. In economic data, PMI fell to three-month low of 56.3 in November. The seasonally adjusted IHS Marki India Manufacturing Purchasing Managers' Index (PMI) highlighted a strong improvement in business conditions. Traders said better than expected GDP data amid unabated foreign capital inflows also strengthened market sentimens.
Here's a look at the updates of the market action on BSE and NSE today
3. 54 PM: Closing
Market indices closed majorly positive on Tuesday, amid strong Asian equities, bouyed by release of key economic data on the domestic front. Sensex ended 505 points higher to 44,655 and Nifty rose by140 points to 13,109.
3. 49 PM:Tech Mahindra share price hits all-time high
Shares of Tech Mahindra traded 4% higher on Tuesday and jumped to an all-time high of Rs 914.20 on BSE, as analysts remained bullish on the software services exporter post its recent analyst meet.
Brokerages remain upbeat on the stock, expecting Tech Mahindra to benefit from 5G and cloud opportunities, and citing better margin trajectory, growth in revenue for the communication vertical. of the 45 analysts tracking tech Mahindra, 37 have a 'buy' rating, five suggest a 'hold' and the rest recommend a 'sell'.
3. 33PM: Nifty technical outlook
Ashis Biswas, Head of Technical Research, CapitalVia Global Research Limited- Investment Advisor said," After a few days of the lackluster movement, we witnessed a positive trend in today's market activity. The expected levels of the market are likely to be in the range of 13050 and 13220 and it's going to be crucial for the short-term market scenario to sustain above the 13050 Nifty50 index level. We have observed that momentum indicators like RSI, MACD to support the upside move and indicating potential upside from the current market level."
3.24 PM:Monthly market outlook
Gaurav Garg, Head of Research, CapitalVia Global Research Limited- Investment Advisor said," Nifty traded with positive sentiments through-out the month, as Nifty surged by 11.39 percent, Nifty closed at 12,968.25 gain There was clear out-performance in banking stocks which helped Nifty to close near 13,000.
Month of December might be calm, and Nifty might consolidate after a splendid November month. Auto sales data for December month might surprise streets after the festive season as we might expect a spike in auto-sales.
Technically, Nifty might find its immediate support in the range of 12,700-12,750 where nifty might rest. Lower IndiaVix showing bulls might continue to hold their grip over broader indices. Technical set-up is strong, and nifty might touch 13,300 in the month of December, however option data is showing 12,500 is immediate support that should be held for this series for further up-move. On December 4th, MPC will announce their decision on interest rate which might affect Banking and financial stocks therefore investors should focus in this sector."
3. 17 PM: top gainers and losers
UltraTech Cement followed by Infosys, Sun Pharma, Bajaj Auto PowerGrid, ICICI Bank and IndusInd Bank were among the top gainers in the Sensex pack. On the other hand, ONGC, M&M, Nestle India, Axis Bank and HDFC were among the laggards.
3.09 PM: Burger King India outlook
SMC global said in its note,"Burger King India will use the funds to roll out of new company-owned Burger King Restaurants by way of - repayment or prepayment of outstanding borrowings of the company obtained for setting up of new company-owned Burger King Restaurants and capital expenditure incurred for setting up of new company-owned Burger King Restaurants, the company said in its red herring prospectus. The company has also raised a pre-IPO funding of Rs 92 crore from public markets investor Amansa Investments Ltd. Shares were allotted to Amansa at a price of Rs 58.5 per share."
2. 47 PM: Markets rise further
Investor risk sentiment improved after positive macro-economic data released on the domestic front. In economic data, PMI fell to three-month low of 56.3 in November. The seasonally adjusted IHS Marki India Manufacturing Purchasing Managers' Index (PMI) highlighted a strong improvement in business conditions. Traders said better than expected GDP data amid unabated foreign capital inflows also strengthened market sentimens.
2. 30 PM: Market update
Market indices traded majorly positive on Tuesday, amid strong Asian equities, bouyed by release of key economic domestic data. Sensex gained 566 points higher to 44,716 and Nifty gained 150 points higher to 13,119.
2. 14 PM: Key Economic data
India's economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 per cent, official data showed on Friday.
Meanwhile, the output of eight core infrastructure sectors dropped by 2.5 per cent in October, mainly due to decline in production of crude oil, natural gas, refinery products and steel.
2.06 PM : YES Bank share hits upper circuit
Shares of YES Bank hit a 5% upper circuit early morning on Tuesday and gained for the second consecutive session, led by buying pressure in the private banking index and broader indices Sensex and Nifty, that traded near record highs.
With only buyers to bid and no sellers to offer, YES Bank share price opened at day's high of Rs 15.38, rising 3.9% against the last closing of Rs 14.65. The stock also hit a day's low of Rs 14.10 on BSE.
The stock of the troubled lender touched a 52-week high of Rs 178 and a 52-week low of Rs 5.65. The market capitalisation of the lender rose to Rs 38,534 crore today from Rs 36,379 crore on Friday. the stock has given 9.23% returns in the last 2 days of straight gains.
In the last one week, the stock has erased 0.14% returns. Meanwhile, it has risen over 23% in just a month, led by buoyancy in Sensex and Nifty that scaled fresh lifetime highs almost every day this week.
1. 45 PM: Burger King IPO outlook
Burger King India Limited (BKIL), the national master franchisee of the Burger King brand in the country, is one of the fastest-growing international Quick Service Restaurants (QSR) chains in India with 261 stores as of September 20. BKIL has a 5% market share in India's Rs 34,800 crore QSR market.
7. Burger King India said in its red herring prospectus that the COVID-19 outbreak had a substantial impact on its operations since the last week of March. By the end of March 2020, the company temporarily shut 201 restaurants. However, by April 1, 2020, 130 restaurants reopened for operation. As of September 20, the company has a total of 261 restaurants running across the country. Further, due to the COVID-19 pandemic, the company's sales decreased in the six months ended September 30, 2020, to Rs 134.6 crore compared to Rs 419.3 crore in the six months ended September 30, 2019. According to its DRHP, the second half of FY2021 is expected to be better than H1 as most cities have removed restrictions.
1. 34PM: Burger King IPO update
Burger King India Limited, one of the fastest-growing international Quick Service Restaurant (QSR) chains in the country, will open the bid/offer period in relation to its initial public offer (IPO) of equity shares of the face value of Rs 10 each on Wednesday, December 2, 2020. The price band of the offer has been fixed at Rs 59 to Rs 60 per equity share for its Rs 810 crore IPO, which will close on Friday, December 4, 2020.
Burger King will sell new shares worth Rs 450 crore to the public, while promoter entity QSR Asia Pte Ltd, owned by Everstone Group, will sell up to six crore shares worth Rs 360 crore at the upper-end of the price band. After the IPO, QSR Asia will hold 52.9 per cent shares in the company. Burger King raised Rs 92 crore (approx) as pre-IPO placement from Amansa Investments Limited, a reputed institutional investor, in November 2020.
1. 27 PM: Anjani Foods share update
Share of Anjani Foods has delivered strong returns to investors in the last six months. Anjani Foods share price stood at Rs 10.74 six months ago and rose to Rs 90.65 on December 1, translating into gains of 744% during the period. In comparison, Sensex rose 33.64% during the period. An investment of Rs 1 lakh in the share six months ago would have grown to Rs 8.44 lakh today. Anjani Foods stock hit all-time high Rs 90.65 today against previous close of Rs 88.90 on BSE. Anjani Foods stock has gained 104.98% in the last 19 days.
The micro cap share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. In one week, the share has gained 11.68%. Market cap of the firm rose to Rs 49 crore.
1. 12PM: Rupee surges by 25 paise to 73.80
Indian rupee, the domestic currency appreciated by 25 paise to 73.80 per US dollar on Tuesday's opening session, tracking strong domestic equities and sustained foreign fund inflows. On Friday, currency benchmark snapped its five-day winning streak and settled 17 paise lower at 74.05 per US dollar amid subdued domestic equities and demand for the greenback from banks and importers. Every week, the rupee gained 11 paise.
12. 57 PM: SeQuent stock outlook
Yash Gupta Equity Research Associate, Angel Broking said,"SeQuent stock up by 2.5% on launch of oral solution product in European countries. SeQuent Scientific Limited, announced the launch of Halofusol 0.5 mg/ml Oral Solution for Calves in 19 European countries. The product had recently received approval from the European Medicines Agency (EMA) through its Spanish subsidiary Laboratorios Karizoo, S.A. The product was developed at SeQuent's R&D centre at Barcelona, Spain & will be manufactured in Spain. Product having a market size of Euro 10Mn in the EU with innovator company is Merck Animal Health. This is a key launch for sequent scientific limited, the company will be able to increase revenue from European market along with this sequent is also planning to extend the launch to the other geographies.
12. 48 PM: Reliance Capital share slips 5%
Reliance Capital share fell 3% today after the Anil-Ambani led firm defaulted on interest on loans from HDFC and Axis Bank. The micro cap share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.
Market cap of the firm fell to Rs 237 crore. Reliance Capital share has lost 37.62% in one year and fallen 36% since the beginning of this year.
The stock fell 4.94% to Rs 9.23 against previous close of Rs 9.71 on BSE.
12.30 PM:Real Estate Sector update
Ashish Bhutani, MD, Bhutani Infra said, "The year 2020 has set off some prominent real estate trends which would have taken shape in the coming 5-10 years, but were adopted as a need to combat the stillness caused by the lockdown. One such trend has been the increased demand for organized commercial spaces in metro cities. People are more comfortable visiting well-managed public spaces due to the cleanliness and hygiene conscious mindset being prevalent. Festive offers, advance return plans, deferment payment plans offered by the developers have been driving forces for bringing back the fence-sitters in the market, which have shown considerably good results. For the next year, we expect gradual recovery which will gain pace once vaccine distribution begins effectively."
12. 11PM: Cement sector outlook
On Cement sector outlook, Centrum Broking said in its note," Following the strong 1HFY21 performance we revised our earnings upwards for FY21/FY22. We retain our BUY rating on Ultratech Cement/Ambuja Cement/Orient Cement and Star Cement. We assign Add rating to ACC/Heidelberg Cement and have upgraded JKCE and JK Lakshmi Cement to ADD (earlier Reduce/Sell respectively). We maintain our Reduce rating on Ramco Cements. We maintain our Sell rating Shree Cement (valuations concerns) and India Cements. We clearly have more comfort on North-based companies over southern companies owing to relatively healthier fundamental/structural strength in earnings and balance sheet.
12.01 PM: Market outlook
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said,"Q2 GDP numbers at 7.5 % contraction came much better than expectations. Impressive corporate earnings is a major contributor to this GDP numbers. If this trend continues Q3 and Q4 numbers will surpise on the upside. Q4 is likely to witness expansion in GDP. The annual GDP figure is likely to be around 8% contraction, not 10% feared earlier. FII buying for November was Rs 60300 crores, beating the previous record by around Rs 25000 crores. FII buying is likely to slowdown in December due to the holiday season"
11. 49 AM: Gold outlook
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said," Yesterday Gold prices closed 0.38% lower at 47,918 levels and silver closed 0.06% lower at 60,222 levels on the back of recovery in global equity market and development on the front of corona virus vaccine. Gold ETF holding is also falling more than a million ounce in this month. In international market Gold is trading at its 4 months low level at $1785 per ounce and silver is trading at $22.86 per ounce.
Relentless news of progress in Covid-19 vaccines and the diminishing need to hedge against an economic collapse continued to divert money from safe-havens into risk markets and crypto currencies
The trend of Gold and silver now become down and expectation of safe haven demand of this asset may fade out. As for today traders can go for sell in gold at Rs 48300 levels with the stop loss of Rs 48700 levels for the target of 47700 levels. They can also go for sell in Silver at Rs 61,300 levels, with the stop loss of 62000 levels and for the target of 59800 levels. Gold may test $1750 to $1760 per ounce levels soon.
11. 36 PM: Nifty outlook
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking) said," The November month has been the historical one for our markets as we saw two key indices, Nifty and Bank Nifty clocking sizable gains over 11% and 24%, respectively. In the midst of all this, Nifty surpassed its previous record high and reached the milestone of 13000. Clearly, FIIs have been the charioteer of this mesmerizing rally as they relentlessly pumped money into our market to mark the biggest single month inflows over Rupees 50000 crores. Now, coming back to the levels, 13040 - 13146 remains to be an immediate resistance zone; whereas on the lower side, 12900 - 12868 - 12790 can be seen as a cluster of supports. With last week's minor decline, 12790 - 12730 has become a sacrosanct support and till the time it is not breached convincingly, one should trade with a positive bias."
11. 24 AM: Burger King outlook
Keshav Lahoti-Associate Equity Analyst, Angel Broking said,"In the last ~6 years of operations in India, Burger King has opened 268 stores. Looking at the current run rate, we believe management will be able to achieve the target of 700 stores by Dec'26. As the store count will increase, operating leverage will kick in and the company will be able to report profit. We believe there is ample scope available for the company to increase its business in India. On FY20 basis, company peers such as Jubilant FoodWorks (Domino's Pizza) and Westlife Development (McDonald) are trading at 8.6x and 5.0x respectively on EV/sales multiple. At the upper end of the price band, the company will trade at an EV/sales multiple of 2.2x on FY20 basis, which we believe is quite reasonable. We believe that there is a good possibility of listing gains given lower valuations as compared to other listed peers. We are also positive on the long term growth prospects of the Industry and the company, and hence recommend to "Subscribe" to the issue for long term as well as for listing gains."
11. 19 AM: Reddy outlook
Yash Gupta Equity Research Associate, Angel Broking said," Dr. Reddy's Laboratories Ltd stock down by 1% on news to acquire selected Anti-Allergy brand from Glenmark pharmaceuticals. Dr. Reddy's Laboratories announced that it has entered into a definitive agreement with Glenmark pharma to acquire brand Momat & its Products for Russia, Kazakhstan, Uzbekistan, Russia, Kazakhstan, Uzbekistan and Ukraine along with rights to the trademarks, dossiers and patents for the territories mentioned. The divested brand and its extensions represent two types of products, (a) Mometasone mono product and (b) combination of Mometasone with Azelastine, and are indicated for the treatment of Seasonal and Perennial Allergic Rhinitis. This is positive development for the company. This acquisition will help Drreddy to expand its business in Russian, Ukraine, Kazakhstan and Uzbekistan market. Dr. Reddy's strong presence in the anti-allergy segment in these countries after adding this product in its portfolio company will gain market share in Russia, Ukraine etc.
11. 09 AM: PMI falls to three-month low of 56.3
PMI fell to three-month low of 56.3 in November. The seasonally adjusted IHS Marki India Manufacturing Purchasing Managers' Index (PMI) highlighted a strong improvement in business conditions. However, the headline number was down from 58.9 in October to a three-month low.
10. 51 AM: Bitcoin surges to all-time high at $19,864.15
Bitcoin soared to a record high against the dollar on Monday, as its 2020 rally steamed ahead, boosted by increased demand from both institutional and retail investors that saw the virtual currency as a safe-haven and a hedge against inflation.
The digital unit touched an all-time peak of $19,864.15, breaking its prior record set nearly three years ago. It was last up 6.1% at $19,306.35.
Last Friday, however, bitcoin dropped more than 8%, below $17,000, before rebounding on Monday.
10. 47 AM: Market update
Market indices opened on a positive note on Tuesday, in line with global equities. Sensex gained 410 points higher to 44,559 and Nifty gained 89 points higher to 13,058. During last week, Sensex and Nifty gained 267 points or 0.61% and 117 points or 0.91%, respectively.
10.33 AM: Global markets
Asian equities were buoyed today as investors react to the release of a private survey of China's manufacturing activity. Although, European and US equities closed in red territory amid immediate concerns about the spiking coronavirus pandemic.
10. 26 AM: Nifty Outlook
Nifty Outlook, Geojit Financial Services said:" The struggles near 13000 is eating away at the prospects of 13400, but will remain in contention as long as 12940 holds. A collapse is less likely, but a push beyond 12670 could open door for 12300-11850."
10.12AM: Market outlook
On markets opening --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said:
13050 is the resistance for the Nifty - we need to keep above this level to continue the upward journey. If we can get past 13050, we should achieve 13200. The support is at 12800 and till this level holds, we can continue buying on dips for higher targets.
10. 02 AM: Market update
Market indices opened on a positive note on Tuesday, in line with global equities. Sensex gained 250 points higher to 44,407 and Nifty gained 68 points higher to 13,036.
9. 53 AM: Global markets
Asian markets were trading higher as investors reacted to Chinese PMI numbers which came in at 54.9. RBA rate decision is also expected today.
US markets closed lower on Monday on the back of profit booking post recent big gains. However, index futures have bounced back sharply with good gains.
European markets closed lower on Monday but ended the month on strong footing. Talks between UK and EU are at a significant stage which could act as triggers in coming days.
9.42 AM: Stocks to watch today on December 1
ICICI Lombard, Unichem Labs, Indiabulls Housing, Tata Motors, Hero MotoCorp, Dr Reddy among others are the top stocks to watch out for in Tuesday's trading session
9. 30 AM: Market weekly outlook
Ajit Mishra, VP - Research, Religare Broking said," On the data front, the auto sales numbers start pouring in from the beginning of the month. Besides, the Markit Manufacturing PMI and Services PMI data are scheduled for December 1 and December 3 respectively. Lastly, the RBI's MPC will announce its stance on key rates on December 4.
Indications are in the favour of further consolidation in the Nifty index and the probable range could be 12,600-13,100. Meanwhile, we expect volatility to remain high due to scheduled data and events. Since the short term is up, the prudent approach is to accumulate quality stocks on dips. Almost all the sectors are participating in the rally but we're seeing mixed trends within the sector so traders should focus more on the selection of stocks. We feel the recent traction in the broader market will continue but only fundamentally sound midcap and smallcap counters should be preferred for trading or investment."
9. 23 AM: FII action
Foreign portfolio investors (FPIs) bought shares worth Rs 7,712.98 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 4,968.90 crore in the Indian equity market on 27 November, provisional data showed. Stock markets were closed on Monday, 30 November 2020 on account of Gurunanak Jayanti.
9. 19 AM: Opening session
Market indices opened with positive bias on Tuesday, in line with global equities. Sensex gained 150 points higher to 44,333 and Nifty gained 44 points higher to 13,013. SGX Nifty on the Singapore Exchange was rising by 10 points, indicating flat trend in domestic grounds today. Asian equities were buoyed today as investors react to the release of a private survey of China's manufacturing activity. Although, European and US equities closed in red territory amid immediate concerns about the spiking coronavirus pandemic. Yesterday
9.07 AM: Key marco economic data
In economic data, the National Statistical Office (NSO) released the estimates of Gross Domestic Product (GDP) in the July-September period. Provisional estimates of gross domestic product for the second quarter of the year ending in March 2021 show economic output shrank by 7.5%, following the 23.9% contraction in the first quarter.
India's eight core industries growth for October was at -2.5%. The September growth number has been revised to -0.1% from -0.8% earlier.
Markit Manufacturing PMI for November will be declared today, 1 December 2020.
8. 50 AM: Rupee closing
The currency benchmark rupee snapped its five-day winning streak and settled 17 paise lower at 74.05 per US dollar on Friday amid subdued domestic equities and demand for the greenback from banks and importers. Every week, the rupee gained 11 paise.
8. 40 AM: Are Sensex, Nifty overvalued?
The stock market is hot and running. The benchmark Sensex hit its all-time high of 44,825.37 last week, while Nifty crossed 13,000 for the first time. However, the stock market is not really reflecting the true picture of how businesses are doing. "I don't know why the market levels are where they are right now, when the economy is in the mess. It's the same globally. But I have not seen it in my 35 years of career," says Nithin Kamath, Founder & CEO at Zerodha.
8. 30 AM: Last closing
Yesterday, markets were closed on account of Gurunanak Jayanti. On November 27, BSE Sensex ended 110 points lower at 44,149 and NSE Nifty fell 18 points to close at 12,968. During last week, Sensex and Nifty gained 267 points or 0.61% and 117 points or 0.91%, respectively.