Sensex, Nifty Highlights on December 2: After a volatile trading session, market indices lost heat in the last hour of session and closed flat on Wednesday, tracking mixed cues from global markets. Sensex ended 39 points lower at 44,618 and Nifty gained by 4 points to close at 13,113. Global equities turned positive today after Britain anoounced it became the first country to approve the Pfizer-BioNTech vaccine against COVID-19 and said the vaccine would be rolled out from next week. Hopes for additional US economic stimulus and a coronavirus vaccine kept market sentiment well-supported.
Here's a look at the updates of the market action on BSE and NSE today
3. 50 PM: Closing outlook
On markets closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The Nifty failed to get past the 13150. It took support at the 13000 level and jumped back to close above 13100. The index needs to cross 13150 in order to achieve the next target of 13200-13300. We must note that this zone can prove to be a stiff resistance where selling pressures can be witnessed. On the downside, 12950-13000 is a good support and if we break that, we could see a slide of 150-200 points."
3.43 PM: Fiscal outlook
"Broad-based demand revival and a low base in 2020 will support strong GDP growth of 10.8% in India in fiscal 2022 ending March 2022, following a decline of around 10.6% in fiscal 2021 -the country's first contraction in four decades," says Sweta Patodia, a Moody's Analyst.
3. 38 PM: PMI outlook
Jyoti Roy - DVP- Equity Strategist, Angel Broking said,"Indian manufacturing PMI for November has come in at 56.3 in November as compared to 58.9 in October and point to continued improvement in the economy though at a slightly slower pace than last month. The expansion for the month of November was led by consumer goods which registered a stronger rate of increase. Though the pace of expansion has somewhat eased from October's high it needs to be looked at in the context of the very strong expansion registered in the last couple of months. The November manufacturing PMI numbers corroborate our view that we are witnessing a strong acceleration in the underlying economy which is expected to continue. While manufacturing has led the rebound in growth we expect services sector to lead the second leg of expansion and all eyes will be on the services PMI numbers which will be reported later during this week."
3.20 PM:Bajaj Auto sector outlook
Jyoti Roy - DVP- Equity Strategist, Angel Broking said,"Bajaj Auto total sales for November 2020 were up 5.0% YoY to 422,240 units. Domestic sales were down by 4.0% YoY to 198,933 units while exports registered strong growth of 14.0% YoY to 223,307 units. Two wheeler sales were up by 12% YoY at 384,993 units with domestic and exports registering growth of 7% and 18% YoY respectively. Commercial vehicles sales continue to remain under pressure, down by 38% YoY at 37,247 units. Domestic commercial vehicles sales were down by 66% YoY to 10,737 units while exports did much better at 26,510 units thus registering a marginal degrowth of 6.0% YoY. Post the festive season there is a possibility of some cool off in growth in the domestic two wheeler markets though exports should remain stable. In the commercial vehicles space while exports have normalized domestic sales are expected to improve only gradually from here on."
3.11 PM: Real Estate sector update
Sanjeev Arora, Director, 360 Realtors said, "Real estate sentiments have started to bounce back in most of the major markets in the country, as sales have jumped by around 85-90. The euphoria, which started by the existing festive season will lead up to year-end, giving the required thrust to the industry. Numerous factors are driving the uptrend including pent-up demand in the market, lowered rate of interest, and numerous attractive payment plans by the developer. Investors are also showing interest in real estate assets as it is believed to low-risk investment."
3.01PM: Maruti Suzuki outlook
Jyoti Roy - DVP- Equity Strategist, Angel Broking said,"Maruti Suzuki reported marginal degrowth in sales numbers for the month of November 2020. Total sales for the month of November was up by 1.7% yoy to 153,223 due to strong growth in exports. Domestic sales for the month were down by 1.7% to 138,956 units while exports registered strong growth of 29.7% YoY to 9,004 units. In the domestic market mini and compact segments contracted by 15.1% yoy and 1.8% yoy respectively while the mid level segment registered a strong growth of 29.1% YoY. Utility vehicles and vans reported decent growth of 2.4% yoy and 10.0% yoy respectively while the LCV segment registered strong growth of 40.3% YoY. While monthly sales numbers are expected to remain stable going forward growth rates are expected to remain muted for some time as the low base of last year which was helping growth numbers till September has gone away."
2.53 PM: Divis Labs outlook
Yash Gupta Equity Research Associate, Angel Broking said," Divis Laboratories to invest Rs 1500 Crores in phase manner in next 12-18 Months to increase its capacity. Company has announced the commencement of construction of Divi's Laboratories Unit-III Facility at Kona Forest, Near Kakinada, East Godavari District, Andhra Pradesh from the 7th December, 2020. Divis will be investing about Rs. 1500 crores out of its internal accruals in phased manner for the implementation of its Unit III facility. The operations are likely to commence within 12 to 18 months for 1st phase of the Project. All the requisite licenses have been granted by the Government of India and Government of Andhra Pradesh for implementation of the Project. This is a very important decision for the company to invest in the next capex cycle. This will help the company in the next leg of future growth. Company's top line has grown by a CAGR of 18% in the last 3 years from 2018 to 2020 while Net Block has increased from 2088 Cr to 3495 Cr in 2019 to H1FY2021, we expect this further to increase to 5000 Cr in next 2-3 years."
2. 39 PM: India likely to resume oil imports from Iran, Venezuela under Biden presidency
India wants to diversify its oil imports, including the resumption of supplies from Iran and Venezuela, after Joseph Biden becomes president of the United States, Oil Minister Dharmendra Pradhan said on Wednesday.
"As a buyer I would like to have more buying places. I should have more destinations to go for purchasing (oil)," Pradhan said in response to a question about his expectations for the resumption of oil imports from Iran and Venezuela under a Biden presidency.
2. 21 PM: Market update
Sensex was trading 430 points lower at 44,223 and Nifty fell by 103 points to 13,005.
2. 10 PM:Bank of Baroda outlook
LPK Securities in its note said," In 2QFY21, Bank of Baroda (BOB) has delivered a strong result on operating, assets quality as well as collection efficiencies front. Moreover, reported gross slippages declined to Rs 15.2bn v/s Rs 30bn in the previous quarter. Furthermore, the collection efficiencies of domestic loans stood 94% of same quarter in previous year. The 2QFY21 ROA and ROE stood at 0.59% and 9.24% respectively. Factoring the healthy collection efficiency, we believe the COVID provision (~30bps of the net advances) would be adequate to absorb imminent stress. The bank may raise Rs 135bn in FY21 which is likely to boost the balance sheet further. We believe the negatives are in the price and an inexpensive valuation (0.4x PBV) makes BOB an attractive BUY.
2.01 PM: Top losers and gainers
HDFC twins, Reliance Industries were among the top losers and Tata Steel, Titan and Asian Paints were among the top gainers.
1. 54 PM: Burger King IPO
Allotment of shares will be done on December 9 and shares of the firm are likely to be listed on December 14.
Meanwhile, the arm of US-based quick service restaurant (QSR) chain, on Tuesday raised Rs 364.5 crore from anchor investors.
1. 40 PM: Burger King India collects Rs 364 cr from anchor investors
Burger King India, the arm of US-based quick service restaurant (QSR) chain, on Tuesday raised Rs 364.5 crore from anchor investors ahead of its initial public offering (IPO) on December 2.
"The IPO committee of the board of directors of the company vide resolution on December 1, 2020, and the promoter selling shareholder in consultation with the book running lead managers or BRLMs have finalized allocation of 6,07,50,000 equity shares in aggregate, to anchor investors at the anchor investor allocation price of Rs 60 per equity share," according to a BSE circular.
1. 32PM: Market outlook
Expressing morning view on the market, Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said,"GST collections in November at Rs 104963 crores indicate that economic recovery is gaining momentum. However, there are concerns whether this momentum will sustain. There are two views: one, this is unlikely to sustain since the recovery in the last three months has been driven by pent-up and festive season demand; two, the revival in demand is largely driven by the tailwind of very low interest rates. We will have to wait for a couple of months more for clarity on this. Meanwhile decling dollar ( Dollar index at 91.23) continues to push up stock prices globally"
1. 20 PM: Phoenix Mills stock outlook
Yash Gupta Equity Research Associate, Angel Broking said,": The Phoenix Mills stock up by 12% after positive news development of a signing agreement with GIC. The Phoenix Mills limited and its subsidiaries have jointly signed a non-binding Term-sheet with an affiliate of GIC Private limited for formation and development of a strategic retail-led mixed-use platform. The Proposed Transaction is subject to execution of definitive agreements by the parties and fulfilment of conditions. Phoenix mills will contribute the following retail assets Phoenix Marketcity Mumbai and Phoenix Marketcity Pune and the following commercial assets Art Guild House, Phoenix Paragc, n Plaza and Centrium, Mumbai as a part of the platform. Together these assets constitute a retail gross leasable area of approximately 2:33 million square feet and office GLA of approximately 1.03 msf, aggregating to GLA of 3.36 msf with FY20 net operating income of approximately Rs. 3.70 bn. GIC will invest in this by way of a combination of primary infusion and secondary purchase of equity shares. Subject to mutually agreed terms and conditions between the parties, GIC will initially acquire an equity stake of 26% the parties to the transaction may mutually agree for. To further increase its stake up to 35% within a 12 month period from the closing of the Proposed Transaction. This is very positive development for the Phoenix mills as proceeds from this transaction will be utilized as growth capital for further expansion and acquisition of mall opportunity and positive for shareholders also as GIC will acquire some stake from open offer also."
1. 09 PM : Rupee rises 25 paise
Indian rupee, the domestic currency, appreciated by 25 paise to 73.43 per US dollar on Wednesday's opening session amid sustained foreign fund inflows and weak American currency.
The domestic unit opened at 73.45 per US dollar at the interbank forex market and gained by 25 paise to touch a high of 73.43 over its previous close.
On Tuesday, the Indian rupee appreciated by 37 paise to close at 73.68 per US dollar, tracking strong domestic equities and sustained foreign fund inflows.
12. 53 PM: Burger King India IPO in progress
Burger King India has launched its initial public offering (IPO) today. One can bid for the share in a price band of Rs 59-Rs 60 per share. A single bid will contain a minimum of 250 shares equivalent to 1 lot and thereof. One can apply for a maximum 18 lots during the share sale which will end on December 4.
The company plans to raise Rs 810 crore through the share sale at the higher end of price band.
The firm garnered Rs 364.5 crore from anchor investors ahead of its IPO on Tuesday. The anchor investors include government of Singapore, Sundaram Mutual Fund, SBI Mutual Fund, Integrated Core Strategies Asia Pte Ltd, HDFC Trustee Company Ltd and ICICI Prudential Mutual Fund.
12.49 PM: Market update
Sensex was trading 300 points lower at 44,350 and Nifty fell by 75 points to 13,035.
12. 31PM: Rupee outlook
"Record low real rates across the globe are causing the huge amounts of liquidity infused by central banks to chase riskier assets. The Dollar continues to get hammered," said Abhishek Goenka, Founder and CEO of IFA Global. He further noted that safe haven assets such as the US treasuries and the Yen are under performing.
"GST collections came in above the Rs 1 lakh crore mark for the second successive month (November GST collections came in at Rs 1.05 Lakh crs) which is heartening. Bonds are however expected to trade sideways until the RBI monetary policy on Friday," he further noted.
12. 26 PM: Glenmark Pharmaceuticals outlook
Geojit Financial Services said in ite note," Consolidated revenues for Q2FY21 rose 4.9% YoY to Rs. 2,952cr with India business at Rs. 1,051cr (+17.2% YoY) and API business at Rs.321cr (+19.1% YoY) contributing strongly, coupled with a good performance in Europe (+11.6% YoY) and ROW (+9.1% YoY) regions. Given current upside potential with successful new product developments and robust revenues, improving margins due to cost rationalization measures and a strong pipeline, we expect the stock to outperform in upcoming quarters. Hence, we retain our BUY rating on the stock with a revised target price of Rs. 548 based on 16x FY22E EPS."
12. 13PM: Oil prices
Brent crude futures, the global oil benchmark, was trading 0.76 per cent lower at USD 47.06 per barrel. Oil prices fell as investors awaited the OPEC+ meeting outcome after the producers postponed meeting to January. The OECD lifted its global economic outlook and expects economy to gain pace in coming 2 years.
12.00 PM: Auto monthly volume outlook
Auto sector's monthly volume update, Vivek Kumar from JM Financial Institutional Securities Limited said in its note," During the festive months of Oct-Nov'20, major OEMs (except Eicher - impacted by supply constraint) reported improvement in YoY wholesales primarily driven by retail sales and continued inventory filling at dealerships. In Nov'20, MSIL relatively underperformed peers with just 2% YoY growth driven by lower number of production days owning to festive holidays, while Kia (+50% YoY) retained its 4th position ahead of M&M driven by strong sales of newly launched Sonet. Strong demand for PVs and relatively lower inventory is expected to lead to robust PV performance going ahead. While major 2W OEMs have posted strong double digit YoY wholesales (TVS leading peers with 25% YoY growth), our checks suggest that the retail sales during festive season remained neutral leading to higher than normal inventory. Basis our checks, inventory was highest with HMCL, followed by TVS and BJAUT. AL posted 23% YoY growth in domestic MHCV truck sales and TTMT MHCV segment increased 13% sequentially driven by pick-up in economic activity (construction and mining) and increase in fleet utilisation (85%+). Tractor segment continued positive YoY volume growth since May'20 driven by higher crop production, continued government support along with healthy MSP-based procurement target, sufficient availability of water (reservoir levels and rainfall) and easy availability of finance.
While wholesales have witnessed continued momentum, it is crucial to monitor sustainability of retail sales (especially for 2Ws) post festive period. 2HFY21 offers a softer base favouring MHCV, 2Ws, tractors and PVs, in that order."
11. 49 AM: Economic outlook
Aishwarya Sonker from JM Financial Institutional Securities Limited said," GST collections in Nov'20 stood at INR 1.05trn, crossing the INR 1trn mark for the second consecutive month. These were higher 1.4%YoY but flat MoM. While the headline collections indicate sequentially lower growth in Nov, the two-year growth in our view is a better comparison given that Diwali fell on - i) 7 Nov in 2018, and ii) 27 Oct in 2019. The two-year growth thus, notably reveals better growth in Nov'20 vs. Oct'20 driven by 6% growth in domestic GST. This is despite no artifical boost of pending taxes on account of any relaxations for GST compliance. The only explanation therefore is economic recovery. Nov'20 GST collections reflect sales that happened in Oct'20 which was a month of robust economic activity- i) Manufacturing PMI stood at a 12-year high, ii) e-way bills recorded 21% YoY growth, and iii) consumption indicators such as auto, property registration, mobility trendswere healthy. Going forward, given the moderation in recovery momentum in Nov'20 (The COVID-19 Files- Unlock 7.0), Dec'20 GST collections are unlikely to sustain. Overall, we maintain our estimate of combined fiscal deficit-to-GDP ratio at 12.5% in FY21."
11. 34 AM: Tata Motors share rises 4%
Tata Motors share rose nearly 4% today after the Indian auto firm reported a 21% rise in sales for November. The stock touched an intraday high of Rs 186.75, rising 3.92%. The share opened with a gain of 2.45% at Rs 184.10 against previous close of Rs 179.70 on BSE. The share has gained 0.76% in a year and risen 15.84% since the beginning of this year. Market cap of the firm rose to Rs 57,439 crore. The large cap share has gained 40.38% in one month.
11. 22 AM: Global market update
Asian markets are trading mixed even after record moves seen in US markets. Australia's economy expanded 3.3% QoQ in September which was above Reuters estimate. US markets closed higher on the back of positive cues related to hopes that Congress could come out with a new coronavirus aid package soon. European markets closed higher with basic resources leading while healthcare stocks moving lower.
The OECD lifted its global economic outlook and expects economy to gain pace in coming 2 years. Meanwhile, Pfizer and BioNTech have reportedly applied to the European Medicines Agency for conditional marketing authorization of their coronavirus vaccine. If authorization is granted, it could enable use of the vaccine in Europe this month.
11. 18 AM: Nifty Outlook
Geojit financial said in its note,"Despite raising concerns yesterday, we had stuck to the 13400 view, while keeping 12940 as the downside marker. This construct is still in play, favoured view expects early upside attempts from 13100 region to be short lived, potentially leading to a volatile dip into the 13050-13020."
11.09 AM: Market update
Sensex was trading 150 points lower at 44,511 and Nifty fell by 22 points to 13,085.
11.00 AM: Nifty technical outlook
On markets opening --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"13150 is the level to watch out for as this is around the level from where we have recently turned. If we get past that we should be headed to 13250-13300 which can prove to be a stiff resistance zone. The Nifty has a good support at 12800."
10. 50 AM: Burger King IPO
Burger King IPO by Ms. Nirali Shah, Senior Research Analyst, Samco Securities said,"Burger King, the second largest burger brand globally, has come up with a Rs 810 crore IPO which is set to open on 2nd December. It is the fastest growing QSR chain with a target to reach 700 restaurants by the end of 2026. As the company is in a growth phase it has been making losses, but its revenue is growing at a CAGR of over 50 percent due to rapid expansion. Burger King is in the race to take advantage of India's fast growing QSR industry as well as the shifting trend towards organized sector. However, Covid-19 has hit the industry hard as most of the restaurants were non-operational in the first half of 2020. Further uncertain events and state-wise lockdowns remain a big threat to the company. For now the debt to equity ratio is comfortable at 0.8x and the CFO has improved from the negative territory to Rs 112.7 Crs in FY20. The company also plans to use some of the IPO proceeds to repay its debt and for expansion plans. However, stringent rules due to a new Covid wave might disrupt its plans and could be risky for a relatively new player in India given its strong competition. At 2.7x P/Sales, Burger King is relatively cheap compared to 10.4x P/Sales and 6.32x for Jubilant Foodworks and Westlife Development respectively. Keeping the risks in mind, we advise investors to Subscribe for listing gains only for now. Further improvement in bottomline, reduction of debt and same store sales growth should be analysed in the following quarters to take a long-term call."
10. 40 AM: Global market update
Adding to their sharp gains from the previous month, main stock indices jumped on Tuesday in the United States. Sentiment got a boost amid hopes for a second stimulus package after Senate Majority Leader Mitch McConnell rejected the stimulus plan proposal worth $908 billion presented by a group of lawmakers.
Asian equities were mostly positive today as hopes for additional US economic stimulus and a coronavirus vaccine kept market sentiment well-supported.
10.33 AM: Gold outlook
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said,"Yesterday gold prices increased by 1.35% and closed at 48567 levels and Silver prices increased by 4.94% and closed at 63198 levels on back of weakness in dollar. Increasing cases due to corona virus also supports the gold and silver prices. However development on the front of corona virus vaccine may curb the sharp appreciation. Appreciation in USDINR may also pressurize the gold and silver prices."
He added," As of today we expect traders can go for sell at 48600 with the stop loss of 49000 and for the target of 48000 and in silver may also sell at 63000 with the stop loss of 63700 and for the target of 61000 levels."
10. 20 AM: Nifty outlook
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking): Yesterday's move indicates how strong the overall trend has been, because all declines in the recent past are comfortably getting bought into. For the coming session, 13150 is the immediate level to watch and after surpassing it, we may see an extension of the move towards 13225 - 13300 levels. However, when everything looks so hunky dory, it's advisable to be a bit pro active as well. As a momentum trader, there is no harm taking some money off the table and hence, we advocate staying light from here on.
It's advisable to continue with a stock specific approach and take one step at a time. As far as support levels are concerned, 13020 followed by 12914 are to be seen as key points."
9. 58 AM: Stocks in news today
Stocks to watch today on December 2: ICICI Bank, YES Bank, Dr Reddy, Wockhardt, Ajanta Pharma, Coal India, Vodafone among others are the top stocks to watch out for in Wednesday's trading session
9. 41 AM: Burger King IPO opens today
After 12 initial public offers mobilising close to Rs 25,000 crore in the year so far, Burger King's public offer, with an issue size of Rs 804-810 crore, is all set to tap the market on December 2. It consists of a fresh issue of equity shares amounting to Rs 450 crore and an offer for sale of 6 crore equity shares with a face value of Rs 10 per share. The proceeds from the sale of fresh issue will be utilised for repayment of outstanding borrowings, capex for setting up of a new company owned restaurants and general corporate purposes.
9. 33AM: FII action
Foreign portfolio investors (FPIs) bought shares worth Rs 3,242 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,043.21 crore in the Indian equity market on 1 December 2020, provisional data showed.
9. 20 AM: Opening session
Market indices opened on a bullish note but gave up early gains on Wednesday, tracking mixed cues from global equities, amid profit booking. Sensex was trading 90 points lower at 44,577 and Nifty was falling 14 points at 13,095
9. 17 AM: Market outlook
As per Reliance research, NSE-NIFTY begun week on a positive note and regained 13,100 mark. Since, 26th November, 2020 the index moved up forming higher top higher bottom and reached near to its life-time-high of 13,146 level. In case the index manages to surpass 13,146 level convincingly, near-term bearish view will be negated. On the higher side, the index will face hurdles at 13,400 and 13,500 levels. However on the lower side, the index will initially find support at 12,800 and then at 12,700 levels.
As for the day, support is placed at around 13,005 and then at 12,901 levels, while resistance is observed at 13,171 and then at 13,232 levels.
9.08 AM: Nifty outlook
Gaurav Garg, Head of Research, CapitalVia Global Research Limited- Investment Advisor said," 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. The technical set-up is strong, and Nifty might touch 13,300 in the month of December, however, options data is showing 12,500 is immediate support that should be held for this series for further up-move."
He added," On December 4th, MPC will announce their decision on the interest rate which might affect Banking and financial stocks therefore investors should focus in this sector. The 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."
8. 50 AM: Rupee outlook
Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking said," An incessant rally in domestic equity indices and slide in greenback towards two and half year lows has paved the way for a sharp appreciation in rupee of around 0.64% towards 74.44 mark, wherein it has breached the crucial barrier of 73.80 mark. More positive news about another promising vaccine candidate which looks set to be rolled out soon and upbeat manufacturing data from China has cheered the street and raised hopes of a swifter recovery. This is leading investors to dump dollar and move towards riskier currencies, despite the warning by the Fed Chair that significant challenges and uncertainties for the US economy still remain. All eyes will now be on the Fed's upcoming meeting, where it is likely to come out with further monetary easing measures to boost the economy, amid no further fiscal support in the last few months. Nonetheless, with the 73.80 mark being taken out, we believe that rupee can witness further strength towards the 73.00-73.10 mark in coming days."
8. 40 AM: Rupee closing
On the currency front, the Indian rupee appreciated by 37 paise to close at 73.68 per US dollar on Tuesday, tracking strong domestic equities and sustained foreign fund inflows.
8. 30 AM: Last closing
Market indices closed higher on Tuesday, buoyed by the release of key economic data on the domestic front, amid strong Asian equities. Sensex ended 505 points higher at 44,655 and Nifty rose 140 points to 13,109. Today, BSE's market cap has reached the highest-ever peak of Rs 1,76,22,306.71 crore.