Sensex, Nifty Highlights on December 4: Market indices closed near record highs on Friday, in line with global peers, after apex lender RBI in its Monetary Policy Committee meet kept the policy stance 'accommodative' and kept the key lending repo rate unchanged. Sensex ended 446 points higher at 45,079 and Nifty gained 124 points higher at 13,258. During the session, Sensex touched a lifetime high of 45,148 and Nifty hit an all-time high of 13,280. Yesterday, Sensex ended 14 points higher at 44,632 and Nifty gained by 20 points to hit 13,133. Global equities were buoyed today amid positive macroeconomic data flow from China, US coronavirus stimulus negotiations, and developments on the COVID-19 vaccine front.
Here's a look at the updates of the market action on BSE and NSE today
3. 59 PM: Market closing
Market indices closed near record highs on Friday, in line with global peers, after apex lender RBI in its Monetary Policy Committee meet kept the policy stance 'accommodative' and kept the key lending repo rate unchanged. Sensex ended 446 points higher at 45,079 and Nifty gained 124 points higher at 13,258. During the session, Sensex touched a lifetime high of 45,148 and Nifty hit an all-time high of 13,280.
3. 47 PM: RBI urges banks to conserve profit, not issue any dividends for FY20
In view of the economic shock caused by the COVID-19 pandemic, Reserve Bank of India (RBI) on Friday asked scheduled commercial banks and co-operative banks not to make any dividends for the financial year ended March 2020.
In view of the ongoing stress and the heightened uncertainty on account of the pandemic, RBI said it is imperative that banks continue to conserve capital to support the economy and absorb losses, if any. The decision is based on review of the September quarter financial performance of banks.
In response to the pandemic, RBI has focused on resolution of stress among borrowers, and facilitating credit flow to the economy, while ensuring financial stability, RBI Governor Shaktikanta Das said.
3. 30 PM: Market rises further
Market indices hit new record highs on Friday, in line with global peers, after apex lender RBI in its Monetary Policy Committee meet kept the policy stance 'accommodative' and kept the key lending repo rate unchanged. Sensex was rising 450 points higher at 45,101 and Nifty gained 124 points higher at 13,258. During the session, Sensex touched a lifetime high of 45,148 and Nifty hit an all-time high of 13,280.
3. 15PM: IRCTC share climbs 16%
IRCTC share gained nearly 16% in trade today as Sensex and Nifty hit record highs on progress over Covid vaccine and hopes of additional economic stimulus in the US. The stock touched an intraday high of Rs 1,596, rising 15.93% against previous close of Rs 1,376 on BSE.
IRCTC stock has gained 14.52% in the last 2 days. IRCTC share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. IRCTC stock has gained 77.11% in one year and risen 66% since the beginning of this year. The stock has climbed 19% in one year.
3.04 PM: Cadila outlook
Yash Gupta Equity Research Associate, Angel Broking said,:"Cadila Healthcare up by 3% on positive news of receiving approval from DCGI to commence Phase III clinical trials in India for drug re-purposed for treatment of Covid-19. Zydus Cadila, today announced that it had received an approval from the Drugs Controller General of India to start the Phase 3 clinical trial in CoVID-19 patients with its biological therapy, Pegylated Interferon alpha-2b, PegiHepTM. The trials which will commence in December will be conducted on 250 patients across 20-25 centres in India. In the Phase II clinical trials study established the early safety, efficacy and tolerability of PegiHep TM and has indicated that Pegylated Interferon alpha-2b having statistical clinical beneficial impact on the patient suffering from moderate COVID 19 disease by reducing their viral load helping in better disease management such as reduced duration of oxygen support. Moreover, a single dose therapy will improve compliance and also make it highly affordable for patients. Pegylated Interferon alpha-2b, PegiHepTM is an approved drug and is being re-purposed for the treatment of COVID-19. It will be a very big opportunity for Cadila, we expect results to come in next 3 months, any positive development in Phase 3 trial results will be a key for Cadila."
2. 55 PM: RBI MPC outlook
Expressing views on RBI MPC outlook, Jimeet Modi, Founder & CEO Samco Group said," RBI maintained status quo in-line with street expectations and GDP numbers too have been revised upwards. Although increasing inflationary tendencies have been acknowledged, little seems to have been done to contain the price index. In Fact it is assumed that CPI will cool down to below 5% in H1 of FY21-22. In all likelihood, inflation isn't going lower given the massive helicopter money across the world created by central banks and run up in commodity prices such as crude, base metals. It is likely to remain elevated given that import restrictions are in place to support the domestic economy. Such a growth recipe will have unintended consequences of higher inflation not only in India but across the world which will be the bigger animal to tame a few quarters down the line. However, in the near term this will support recovery in financial markets and will keep the bulls charged in the capital markets."
2.49PM: YES Bank share falls over 2% today
Share of YES Bank were trading lower for the seond straight session on Friday. Earlier today, YES Bank share opened and touched a day's high of Rs 15.59, rising 0.84% against the last close of Rs 15.46. However, the stock later erased gains amid volatility in the broader market and fell 2.39% to hit the day's low of Rs 15.09 on BSE.
Stock of the troubled lender touched a 52-week high of Rs 178 and a 52-week low of Rs 5.65. Market capitalisation of the lender rose marginally in today's session to Rs 38,108.51 crore. The stock has risen 3% in one week.
2. 30 PM: Rupee rises by 16 paise to 73.77
Indian rupee, the domestic currency appreciated by 16 paise to 73.77 per US dollar on Friday's opening session as the Reserve Bank of India maintained status quo on benchmark interest rate for the third time in a row.
Sustained foreign fund inflows, positive domestic equities and weakness of the American currency in the overseas market also supported the local unit.
The domestic unit opened at 73.81 per US dollar at the interbank forex market and gained 16 paise to 73.77 against the greenback over its previous close.
2.20 PM: Market outlook
Yash Gupta Equity Research Associate, Angel Broking said," After the Credit policy Indian Indices loose its shine, RBI holds interest rate unchanged, its 3rd straight meeting as inflation stayed stubbornly high and said the economy was recuperating fast and would return to positive growth in the current quarter itself. Indian indices lost their early gain and down by 70 points from high. Indian Indices Nifty and Sensex up by 54 points (0.42%) and 197 points (0.45%) respectively. Today S&P BSE Telecom (up 1.76%), S&P BSE Fast Moving Consumer Goods (up 1.18%) while S&P BSE Energy (down 0.8%) S&P BSE OIL & GAS (down 0.41%). Global Market update - DOW Jones up by 85 points (Up 0.23%) and NASDAQ up by 27 points (down 0.23%). We expect the market to trade in range bound and 13200 will become a hurdle for Nifty in the short term."
2. 08 PM: HDFC Bank outlook
JM Financial Institutional Securities Limited in its report said,"RBI has issued an order dated December 2, 2020 and asked HDFC Bank to temporarily halt sourcing new credit cards and stop the launch of its digital business generating activities planned under Digital 2.0 and other proposed business generating IT applications. The RBI action comes after the central bank on November 23, 2020 sought an explanation from HDFC Bank after its digital services were disrupted for over 12 hours from the evening of November 21, 2020. RBI has also asked the bank's board to examine the lapses and fix accountability. HDFC Bank stated that the lifting of the regulatory measures would be considered after satisfactory compliance with critical observations made by the RBI. The bank expects that the current supervisory actions will have no impact on its existing credit cards, digital banking channels and existing operations.
1. 49 PM: RBI MPC meeting outlook
Abhishek Bansal, Executive Director, Pacific Group said, "We have to understand that the pandemic has been a unique crisis for financial institutions as well. The apex bank has acted upon it, in best possible manner over the span of a few months ensuring the country maintains a strong economic stance. The GDP growth was previously predicted around -9.5% but in the present declaration GDP growth for 2021 is projected at -7.5%. The difference is indicative of positivity incurred during festive times in the market. The lowest home loan rates have been bringing momentum in residential space, while the commercial segment is slated to return to pre-COVID levels in the upcoming 6 months of 2021."
1.34PM: Burger King India IPO
Keshav Lahoti-Associate Equity Analyst, Angel Broking said,": Burger King India IPO was subscribed by 9.4 times by the second day of issue. Retail portion was most subscribed by 37.8 times as retail had the lowest allocation quota in the issue of only 10%. Non institutional and QIB was subscribed 2.7 and 3.6 times as mostly they subscribe in big numbers on the last day of the issue. Burger King IPO is priced lower compared to the peers. We expect the IPO to be subscribed many times as a lot of value is left in the table.
Company has exclusive national master franchise rights in India with favorable royalty fees (capped at 5% of sales). Company brand positioned for a large and growing population in India - The Millennial. Company also has an India tailored menu with focus on value leadership along with well defined and standardized processes.
We are concerned that the outbreak of Covid-19 had a substantial impact on the restaurant operations. The termination of the master franchise and development agreement would have a material adverse effect on the business. Considering all these, we have recommended to "Subscribe" to the issue for long term as well as for listing gains in our IPO Note
1. 23 PM: Global markets
Markets were trading mildly positive overseas, following report that said Pfizer expects to ship half the Covid-19 vaccine doses it originally planned for this year due to supply chain issues. In US, Pentagon announced that the two firms were added to a blacklist of alleged Chinese military companies. Investors closely monitored progress toward a stimulus deal as lawmakers make a strong push to break a stalemate over how to boost an economy that continues to be hurt by the pandemic.
1. 17PM: Stocks to watch today on December 4
NCC, Union Bank, Granules India, GHCL, HDFC Life, NMDC among others are the top stocks to watch out for in Friday's trading session
1.06PM: UltraTech Cement outlook
JM Financial Institutional Securities Limited in its report said," UltraTech Cement charted out is 3-year capacity expansion plan, where it intends to increase cement capacity by 17.5% to 130.9mnT by end-FY23. The incremental expansion of 12.8mnT does not come as positive surprise, as its in-line with long term volume growth expectations of 8% CAGR, but we believe an improved profitability/RoIC profile as well as strengthening balance sheet will provide headroom to outpace the industry growth rates over FY20-25. Key takeaways from the conference call are: a) Expansion in East, Central and Northern regions is likely to drive improvement in blending ratios (form 1.3x to 1.8x), reduce lead distance and improve clinker utilisation, b) cost of expansion at USD 58/ton (including WHRS) appears materially low and is likely to drive RoCE of 15%+ (conservatively) vs 11.5% now, as 72% of capacity addition is brownfield, c) target to become debt free by FY23 stays intact as annual capex will be restricted to INR25bn, against annual OCF of c.INR85bn and d) expansion in allied areas of white cement, RMC, building solutions and products to drive higher profitability. We continue to maintain BUY with revised TP of INR 5,250.
12.51 PM: Market hits high post RBI monetary policy outcome
Sensex crossed 45,000 mark for the first time today after the Reserve Bank of India (RBI) kept interest rates unchanged considering the stubbornly high inflation. Sensex rose 401 points to 45,033 against previous close of 44,632. Nifty too gained 117 points to 13,250, a fresh all-time high, against previous close of 13,133.
The surge in benchmark indices was backed by financial stocks with Bank Nifty rising 532 points to 29,980 against previous close of 29,448.
BSE bankex too gained 587 points to 34,227 against previous close of 33,640.
12. 20 PM: NCC stock rises 7.5%
NCC share price rose over 7 percent on December 4 after ace investor Rakesh Jhunjhunwala, his wife Rekha Jhunjhunwala, and group companies raised shareholding in the construction firm to 13.7 percent. The stock touched an intraday high of Rs 51.50, rising 7.51% against previous close of Rs 47.90 on NSE. The stock has gained 18.59% in the last 5 days. It opened with a gain of 2.5% at Rs 49.15.
12. 34 PM: Mindtree outlook
JM Financial Institutional Securities Limited in its report said," Mindtree's Analyst Meet reaffirmed the communication around 'profitable growth' apart from providing more details around the 4x4x4 strategy (4 verticals. 4 geos and 4 service lines albeit company intents to carve out a new Health vertical as it sees adjacencies in it's existing services here). Company suggests that order pipeline is healthy and expects to see improvement in win rates over the near/medium term. The company believes that the investments should help drive success in mining of top clients (note that no of US$ 25mn+/50mn+ clients have remained unchanged in the past 6 years with the significant growth at Microsoft nearly making the company a 'one trick pony'. Mindtree's new management under L&T aims to address that and indicates that it has made course correction on this front however we note that results are yet to show up. We maintain HOLD with an unchanged TP of INR 1,280, based on 18x Dec'22E EPS. We find better risk-reward in BUY rated MPHL and PSYS amongst the Tier II techs supported by relative valuation comfort (17-18x FY22E P/E, 14-15x FY23E P/E) and improving growth and margin metrics.
12.29 PM: RBI MPC outcome
Expressing views on RBI Monetary Policy from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said,"Statusquo in policy rates and policy stance are on expected lines. The central bank has reiterated that it will use appropriate policy instruments to ensure ample liquidity to support growth. The revision of FY 21 GDP growth rate to -7.5 percent is positive. RBI's projection of GDP growth to be positive for H2 is in line with market's optimism. Emphasising the multi-speed upturn in economy, the central bank has announced the extension of on tap TLTRO to stressed sectors. There is no market moving announcement in the policy, but the overall tone is positive"
12. 18 PM: Avanti Feeds outlook
Geojit Financial Services said in its note," Avanti Feeds Q2FY21 revenue grew by 6%YoY (+18% QoQ) aided by gradual stability in operations post lock-down. Export realisation improved 15%YoY on better region mix. EBITDA grew by 19% YoY, supported by improvement in EBITDA margin (by 150bps YoY to 13.6%) due to reduction in RM & overhead costs. Relaxation in restrictions, improvement in export prices, regional diversification and increasing market share will support future volumes. Revenue/PAT to grow at 9%/11% CAGR over FY20-22E. We value AFL at FY22E P/E of 19x considering healthy growth & RoE and no debt.
12.06 PM: Top gainers and losers
UltraTech Cement, followed by L&T, M&M, Maruti, ONGC, Bharti Airtel, PowerGrid and ITC were among the top gainers in the Sensex pack. On the other hand, Asian Paints, Infosys, Reliance Industries and Tech Mahindra were among the laggards.
11. 58 AM: RBI policy outlook
Expressing views on RBI Monetary Policy- Deepthi Mathew, Economist at Geojit Financial Services said,"It was in the expected line with the RBI keeping the rates unchanged and continuing with the accommodative stance. The extension of the accommodative stance to the next financial year has cheered the market. However, the fear of a rising inflation rate is evident in the RBI governor's address. The supply-side issues, demand recovery, and inflow of foreign funds could fuel retail inflation"
11. 45 AM: Gold prices today
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said," Yesterday, Spot Gold prices increased by 0.27 and MCX gold increased by 1.6 percent on account of weakness in dollar index and mounting cases of coronavirus across the globe. Alarming increase in the covid19 cases around the globe and many governments imposing fresh lockdown raised bets on further support by central banks which provided more support for Gold.
United States Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin have urged Congress to approve COVID-19 relief funds without further delay, though Democrats continue to attack a decision by Mnuchin to allow five Fed lending programmes to expire during the pandemic. Mnuchin said Congress should also consider extending some of the emergency unemployment benefit programmes that are being used by around 11 million workers. Those programmes will expire at the end of this month without Congressional action. As for today traders can go for BUY in gold at Rs 49100 levels with the stop loss of Rs 48800 levels for the target of 49600 levels. They can also go for BUY in Silver at Rs 63300 levels, with the stop loss of 62700 levels and for the target of 64500 levels."
11.34 AM: Oil prices today
Oil prices lost ground as producers including Russia and Saudi disagreed over production cuts. OPEC+ meeting continues.
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said," Yesterday, WTI Crude prices increased by 1.02 percent and MCX crude increased by 0.77 percent as US crude oil inventories continue to dwindle. US crude oil inventories came in at -0.7 M for the week against market expectations of -1.7 M and previous reading of -0.8 M.
OPEC and non-OPEC allies resumed talks to iron out oil production policy for next year, seeking to build consensus over how to tackle weak demand amid a new wave of coronavirus cases. OPEC has curbed nearly 8 million barrels per day (bpd) of supply to the global market as the coronavirus continues to cut demand for fuel.
The group had been widely expected to roll over those production cuts of 7.7 million bpd into Jan-Mar 2021 amid a resurgent COVID-19 pandemic. Saudi Arabia was the main advocate of such a move. Major economies like U.S. and Europe facing a tough time containing the covid19 pandemic which extended the chances of fresh lockdown denting the demand prospects for Crude.
As for today traders can go for BUY in Crude Oil at Rs 3330 levels with the stop loss of Rs 3270 levels for the target of 3450 levels. WTI Crude Oil May test $48 per barrel levels and Brent Crude Oil may test $52 per barrel very soon."
11.22 AM: Nifty outlook
Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking) said:" We advise traders to look for stock specific trading opportunities according to the momentum while positional traders and investors should look to book some profits on their existing longs. However, one should not look at this as opportunity to take any aggressive contra trades as we would wait for some development on the charts in the near term for any signs of reversal. Thus, trading with a stock specific approach or staying light on positions should be an apt strategy for now.
As far as levels are concerned, the immediate supports for Nifty are placed around 13000 followed by 12900 whereas 13225-13300 are the levels to watch on the upside."
11.10 AM: FII action
Foreign portfolio investors (FPIs) bought shares worth Rs 357.35 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,635.97 crore in the Indian equity market on 2 December 2020, provisional data showed.
10. 59 AM: Swaraj Engines outlook
Amarjeet Maurya - AVP - Mid Caps, Angel Broking said,"Swaraj Engines is engaged in the business of manufacturing tractor diesel engines for M&M. Going forward, we expect strong growth numbers in the tractor industry (in the month of November-20, M&M reported ~56% growth in tractor segment ) due to positive rural sentiments (on back of higher Kharif output and Rabi sowing and continuous government focus on rural growth). Hence, it will benefit the players like Swaraj Engines."
10. 44 AM: Market hits record high
Market indices hit new record highs on Friday, in line with global peers, after apex lender RBI in its Monetary Policy Committee meet kept the policy stance 'accommodative' and kept the key lending repo rate unchanged. Sensex was rising 300 points higher at 44,955and Nifty gained 83 points higher at 13,217. During the session, Sensex touched a lifetime high of 45,023 and Nifty hit an all-time high of 13,248.
10. 38 AM: SEBI on RIL- Future Deal
Markets regulator Sebi has sought some "clarification" from leading stock exchange BSE before giving its go-ahead to the Rs 24,713 crore deal between Future group and Mukesh Ambani's Reliance Industries Ltd.
In an update on November 27, the regulator said it is awaiting a reply to the "clarification" sought from the stock exchange on the draft composite scheme of arrangement between Future Group companies and Reliance Group companies.
10. 24AM: MPC meet Updates
The RBI's Monetary Policy Committee , led by Governor Shaktikanta Das, has announced the central bank's policy stance amid high inflation concerns. The apex bank has kept the policy stance 'accommodative' as per its resolution during the previous MPC meet announcement and kept the key lending repo rate unchanged."MPC decided to continue with accommodative stands of monetary policy as long as necessary, at least till current financial year & into next year to revive growth on a durable basis & mitigate the impact of COVID-19 while ensuring that inflation remains within target," says the RBI Governor.
10. 13 AM: Global market update
Asian markets are trading mixed on the last trading day of the week after reports that Pfizer expects to ship only half of the vaccine previously decided. US markets closed mostly higher but off highs after reports emerged that Pfizer was facing supply chain issues which could impact their planned COVID-19 vaccine deliveries. European markets closed mixed as uncertainty over Brexit talks clouded investor's mind. Travel & leisure shares gained while chemicals lost ground.
10.09 AM: Market technical outlook
Expressing morning view on the market, Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said,""Leading indicators suggest that the recovery in segments like autos is sustaining beyond the festive season. Looks like the historically low interest rate is acting as strong tailwind for the auto segment. Construction also is benefitting from the low interest rates. Meanwhile, RBI is likely to keep rates and policy stance unchanged in today's policy announcement. The mid-small-cap outperformance which began a few weeks ago has more steam left. When Sensex moves above 45000, investors may consider raising cash component in portfolio"
9. 54 AM: Granules India outlook
Yash Gupta Equity Research Associate, Angel Broking said," Granules India Limited announced today that the US Food & Drug Administration (US FDA) has approved the Abbreviated New Drug Application (ANDA) filed by Granules Pharmaceuticals, Inc, a wholly owned foreign subsidiary of Granules India Limited, for Penicillamine Capsules USP, 250 mg. It is bioequivalent to the reference listed drug product, Cuprimine of Bausch Health Americas, Inc. The product would be manufactured at Granules manufacturing facility in Chantilly, Virginia and is expected to be launched shortly. Penicillamine Capsules are indicated in the treatment of Wilson's disease, cystinuria, and in patients with severe, active rheumatoid arthritis who have failed to respond to an adequate trial of conventional therapy. Cuprimine is a trademark of Bausch Health Companies Inc. or its affiliates. This is a very positive development for Granules India by getting this very important approval from USFDA, this drug having U.S. sales of approximately $67 million for the most recent twelve months ending in October 2020 according to IQVIA Health."
9. 49 AM: Market rises further
Market indices opened on a bullish note on Friday, amid positive global equities. Sensex was rising 300 points higher at 44,955and Nifty gained 83 points higher at 13,217.
9. 32 AM:Opening session
Market indices opened on a bullish note on Friday, amid positive global equities. Sensex was rising 150 points higher at 44,812 and Nifty gained 50 points higher at 13,190. The market is expected to trade sideways ahead of the outcome of the Reserve Bank's policy meeting today. The MPC is likely to keep the repo rate unchanged.
9. 21 AM: Nifty Outlook
Geojit Financial said,": 13230/13380 remains the near term objectives, but the patterns as well as oscillators call for volatility or a turn lower, before a sustainable upside is seen. Towards this end, any dips to 13000-12840 could be dismissed as volatility, keeping the uptrend intact, but a direct fall below the same could change all that, with first downside objective being the 12300s."
9. 10 AM: Market outlook
Reliance Smartmoney Reserch said in its report:" NSE-NIFTY ended on a flat to positive note for straight second trading session in a row. Yesterday, the index remained in pressure right from the beginning amidst higher level profit booking and formed a bearish reversal pattern-Hanging Man on the daily chart. In the bull-run, such kind of decline provides good entry opportunity. Hence, near-term decline is unlikely for the index. The index has potential to test 13,400 and 13,500 levels. On the lower side, the index will find support at 13,000 and then at 12,800 levels.
As for the day, support is placed at around 13,022 and then at 12,930 levels, while resistance is observed at 13,167 and then at 13,220 levels."
8. 50 AM: Global markets
Global equities were buoyed today amid positive macroeconomic data flow from China, US coronavirus stimulus negotiations, and developments on the COVID-19 vaccine front.China's Caixin/Markit services Purchasing Managers' Index for November released Thursday came in at 57.8, rising from October's reading of 56.8. PMI readings above the 50 mark signify expansion, while those below that level represent contraction
8. 40 AM: Rupee Closing
On the currency front, the Indian rupee closed 12 paise lower at 73.93 per US currency after a range-bound trade as investors remained cautious ahead of the RBI policy meet outcome.
8. 30 AM: Last closing
Yesterday, Sensex ended 14 points higher at 44,632 and Nifty gained by 20 points to hit 13,133. During thre last session, Sensex touched a lifetime high of 44,953 and Nifty hit an all-time high of 13,216.