Sensex, Nifty Highlights on November 26: Market indices reversed trend and closed majorly positive amid strong opening in European markets on Thursday. After a volatile trading session amid November series expiry day, Sensex ended 431 points higher at 44,259 and Nifty gained by 128 points to 12,987. Yesterday, Sensex ended 694 points lower at 43,828 and Nifty fell by 196 points to 12,858.
Here's a look at the updates of the market action on BSE and NSE today
3. 40 AM: Closing
Market indices reversed trend and closed majorly positive amid strong opening in European markets on Thursday. After a volatile trading session amid November series expiry day, Sensex ended 431 points higher at 44,259 and Nifty gained by 128 points to 12,987.
3.33 PM: Market outlook
Vinod Nair, Head of Research at Geojit Financial services said," Today, the market regained its momentum during the second trading half, on the monthly derivative expiry day, led by bounce in the banking sector. Investors are awaiting the release of Q2 GDP data tomorrow, the market expects contraction on a YoY basis but improvement on a QoQ basis, reflecting recovery in economic activity. The recovery is expected to further rise in Q3, and the market optimism is also high with the news that vaccine will be available in early 2021."
3. 19 PM: Market outlook
S Ranganathan, Head of Research at LKP Securities said,"Indices were powered on expiry day by Metals & BFSI as the broader market too gained ground after positive guidance from Siemens. PSU banks were sought after in afternoon trade as even profit taking got absorbed on sustained buying."
Yash Gupta Equity Research Associate, Angel Broking said," Siemens limited stock up by 7%, Company has reported very positive results and better than market expectation. Siemens limited revenue from operations for Q2FY21 stood at Rs 3450.8 crores down by 8.9% YoY from Rs 3787 crores in Q2FY20. Revenue from Energy business down by 12.8% in Q2FY21 stood at Rs 1583 crores as compared to Rs 1670 crores while revenue from Smart Infra business down by 14.7% in Q2FY21. In Q1FY21 business was heavily impacted by lockdown but recovered in Q2FY21. Profit before tax for the quarter was down by 12.8% at Rs 449 crores in Q2FY21 as compared to Rs 515.2 crores in Q2FY20. Profit after tax for the quarter down by 1.1% at Rs 330.2 crores in Q2FY21 as compared to Rs 333.9 crores in Q2FY20."
2.44 PM: Aviation sector outlook
Aviation - Q2FY21 results review, Centrum Broking said," Domestic air pax traffic continues to recover as it grew 33.7% mom to 5.3m pax in Oct-20 (down 57.2% yoy). Load factor for the domestic industry improved 230bps mom to 66.9% in Oct-20. Furthermore, we have seen a strong 17.2% mom growth in the average daily pax to 199k in November so far which is encouraging. However, it is still far from pre-Covid levels of 410k daily pax (operating currently at 49% of pre-Covid levels). In terms of operational capacity, average daily departures grew 20.1% mom to 1574 in Oct-20 and have grown 12.6% mom to 1772 in November so far to reach 59% of pre-Covid levels of ~3000."
2. 36 PM: Cement sector outlook
Cement sector outlook, 2QFY21 results review, Centrum Broking said," Following the strong earnings in 1HFY21 we have revised our earnings estimates upwards for cement companies under coverage. Effectively we have turned positive on select companies including UTCEM (upgrade to BUY), JKCE and JKLC (upgrade to ADD). We continue to recommend 'BUY' rating on ACEM/ORCMNT/Star Cement and assigned ADD rating for ACC/HEIM. We continue our 'Sell' rating on SRCM and have assigned Reduce rating on TRCL owning to rich valuations. SELL rating continues on ICEM."
2.22PM: NSE suspends trading in Lakshmi Vilas Bank stock
Shares of the cash-strapped lender Lakshmi Vilas Bank (LVB) were suspended from trading on November 26, 2020 from NSE.
National Stock Exchange said in a statement that trading in shares of the lender will be suspended from November 26. "Customers, including depositors of the Lakshmi Vilas Bank will be able to operate their accounts as customers of DBS Bank India with effect from November 27, 2020. Consequently, the moratorium on the Lakshmi Vilas Bank will cease to be operative from that date," said Lakshmi Vilas Bank in a regulatory filing on NSE.
2. 08 PM: Rally in sugar stocks
Keshav Lahoti, Associate Equity Analyst, Angel Broking said," Today sugar stocks were rallying sharply on the expectation of positive outcome of today's sugar millers virtual meeting with Piyush Goyal. Industry will request the Government to continue with the sugar export programme and increase the MSP of the sugar. Market is expecting that the Government might announce an export subsidy to remove surplus sugar inventory in the system. Export subsidy will help sugar millers to earn better profitability and manage cash flow effectively. Industry leaders such as Balrampur Chini, Dhampur Sugar, Dwarikesh Sugar were up by ~5% each.
1.42 PM: Top gainers and losers
Bajaj Auto, M&M, L&T, HDFC, Bharti Airtel, Sun Pharma, UltraTech Cement, Titan and Tata Steel were among the top gainers on Sensex pack. On the other hand, IndusInd Bank, Infosys, Maruti and ONGC were among the laggards.
1.30 PM: YES Bank share falls for seond session
Extending fall for the second straight session, YES Bank share price was 1.9% lower on Thursday's volatile trade led by profit-booking..
YES Bank share price opened higher at Rs 14.25 today, also the day's high and later fell 1.9% lower to the day's low of Rs 13.85 on BSE.
Yesterday, YES Bank closed lower at Rs 14.13, amid a trend reversal in broader benchmark indices Sensex and Nifty.
1. 13PM: Market rises further
Market indices reversed trend with positive opening in European markets on Thursday, the November series expiry day. Sensex was trading 150 points higher at 43,944 and Nifty gained by 45 points to 12,892.
12. 59PM: Global market update
After a record-setting climb earlier in the week set off by news of the development of coronavirus vaccines, markets globally took a pause amid ongoing coronavirus pandemic, and a batch of discouraging data on the US economy, including jobless numbers. The number of Americans seeking unemployment aid jumped last week to the highest level in more than a month
On the domestic front, markets were trading volatile as traders roll over positions in the F&O segment from the near month November series to December series. The December 2020 F&O contracts expire today, 26 November 2020."
12. 48 PM:IDFC First Bank outlook
Jyoti Roy - DVP- Equity Strategist, Angel Broking said," We are upgrading the target price of IDFC First Bank from Rs. 40 to Rs.44 post the recent report by the RBI's Internal Working Group on proposed changes in ownership guidelines for Indian Private Sector Banks. Under the new guideline the RBI has proposed that the ceiling on promoter ownership be increased to 26% from current 15% while Banks currently under NOFHC structure have been allowed an exit from such a structure through the reverse merger route if they do not have other group entities in their fold. If accepted both the changes will reduce the overhang of future dilution of promoter stake as IDFC Ltd currently has a 40% stake in the bank along with its holding in IDFC AMC. Under the proposed guidelines IFDC will have to dilute only 14% of its holdings in the bank as compared to 25% earlier in case they continue to own the AMC. However in case the holding company decides to sell off the AMC business then it opens up the possibility of reverse merger of the bank with the holding company which will do away with any possibility of sale of shares by the promoter entity in the future.
Moreover we remain positive on the bank given that the liability franchise has strengthened significantly under the new management. CASA ratio improved from 10.4% in Q3FY19 to 40.4% In Q2FY21 while NIM has improved to 4.57% in Q2FY21 from 2.89% in Q3FY19. The Bank had raised Rs. 2,000 crores of fresh equity capital during Q1FY21 post which Capital Adequacy Ratio stands at 14.7% at the end of Q1FY21 along with CET-1 Ratio of 14.3%. We believe efforts to build a liability franchise, fresh capital infusion, and provision taken on the wholesale books will help to tide over this difficult time. IDFC First Bank is trading at 1.1xFY22ABV which is at a significant discount to historical average valuations. We have a BUY rating on the stock with a target price of Rs. 44 (1.3xFY22ABV)."
12. 12PM:Lakshmi Vilas Bank (LVB) update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said," Shares of Lakshmi Vilas Bank (LVB) suspended, from the NSE, as the bank merges with DBS Bank on November 27 and the stock will be delisted from the exchange on that day.
For Client of LVB, All the branches of the LVB will function as branches of DBS Bank India from November 27. Customers, including depositors of the LVB will be able to operate their accounts as customers of DBS Bank India with effect from November 27, 2020. Consequently, the moratorium on the LVB will cease to be operative from that date.
The investors who bought in hope of revival, on an expectation of healthy gain got stuck. As LVB networth almost got eroded due to escalated provision and weak business.
In this merger shareholder of LVB will not get any benefit, The entire capital of the bank will be written off post the merger with DBS Bank India Ltd (DBIL). compression in loan book impacted NII and other income which weakened pre-provision profit and continues deterioration of asset quality issue kept provision cost high for the last several quarters and these combinations led to losses. consequently, net worth got eroded and CRAR went way below regulatory requirement.
We believe a merger would be beneficial for DBS bank as it would be able to grow business in the south that has business and individual route to Singapore. As of Q1FY21 DBS CRAR stands at 15.99% and GNPA and NNPA at 2.7% and 0.5%, respectively. DBS is ready to put fresh capital to initiate new business."
12.00 PM: Laurus Labs outlook
Yash Gupta Equity Research Associate, Angel Broking said," Laurus Labs Limited has signed definitive agreements with the Sellers i.e. Eight Roads Ventures and VenturEast Proactive Fund and Ventur East Life Fund III, to acquire 72.55% stake in Richcore Lifesciences Private Limited, a Biotechnology Company, subject to completion of conditions precedent, by way of cash consideration of Rs. 246.67 Crores. This acquisition marks the Company entry into the broader biologics and biotechnology segments. Post this acquisition, Richcore shall become a Subsidiary Company of the Company and the Company will drive scale and operations at Richcore to enable it to become a dominant player in the biotechnology segment. Total valuation of Richcore 340 Cr and cost of acquisition will be 246.7 Cr for 71.55% stake. This will be a significant milestone for Laurus Labs, as this acquisition company will enter the business of Biotechnology which is a rapidly growing business. Biotechnology business generally have more than 5 years of gestation period so this is a very good strategy by laurus to acquire Richcore. "
11. 43 AM: Bandhan Bank outlook
Jyoti Roy - DVP- Equity Strategist, Angel Broking said," Bandhan bank is one of India's leading east focused microfinance lending oriented banks. Though Bandhan Bank started off as a MFI it has been diversifying its loan book over the past few years with mortgages now accounting for ~ 26% of the book while the commercial banking segment accounts for ~6.5% of the loan book. The company is looking to further diversify its loan book and geographical spread over the next 5 years which will lead to significant derisking of the loan book. The bank has posted a good set of numbers for Q2FY21 with NII and operating profit registering growth of 25.8% YoY and 24.5% YoY respectively. The bank has also registered strong deposit growth of 9.1% QoQ while CASA ratio improved by 110 bps QoQ to 38.2%. Bandhan Bank is amongst our top picks in the mid cap banking space given strong liability franchise, industry leading RoE's in excess of 20% along with stable asset quality. At current market price the stock is trading at 2.8x FY22E adjusted book of Rs. 131.4 which is at a significant discount to historical average. We therefore recommend a BUY on the stock with a target price of Rs. 450."
11. 34 AM: Dabur technical outlook
Reliance Research said in its report," At the current level of Rs527,Dabur is poised to move higher till Rs580 initially and Rs630 subsequently. Stock has been consolidating within the ascending triangle since May 2020 and is now poised to witness breakout on the higher side. This breakout will open the doors for the price to move northwards. Weekly RSI, which is poised for a similar breakout, could also support the stock to move higher. Long positions can be initiated in the range Rs525-Rs530 for a target of Rs640. This view will be negated at Rs484 (stop loss) on closing basis.
11. 19 AM: Bosch technical outlook
Reliance Research said in its report," The stock has retraced 50% of prior up-move (7850-14726) and resumed its northward journey. The stock has also given breakout from its 20-week EMA and positively poised above that average. Its RSI has given buy signal post bullish divergence. We believe undergoing positive momentum will continue and will test its November 2019 high of 17260 level. Stop loss will trigger at Rs 11950 (on closing basis) and will negate the long trade."
11.00 PM: Global markets
U.S. financial markets will be closed on Thursday for the Thanksgiving holiday. The Dow Jones Industrial Average and the S&P 500 index closed lower on Wednesday as mounting U.S. layoffs in the wake of new mandated lockdowns to contain surging COVID-19 infections dampened investor risk appetite.
Asian stocks are trading mixed on Thursday as investors reacted to minutes released overnight from the U.S. Federal Reserve's November meeting. The summary of the Fed meeting from earlier this month indicated that U.S. central bank officials discussed ways of getting more money into the economy, which is still recovering from the coronavirus pandemic.
The Bank of Korea on Thursday held steady on its key policy rate at a record low of 0.5%.
10. 50 AM: Nifty outlook
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking) said," How many times in the past have we seen the market correcting sharply after posting a record high on the same day. Yesterday's correction precisely triggered after entering this key resistance zone of 127% 'Price extension' of the previous key swing highs and lows. We are now stepping into the historical November month expiry day and hence, some volatile moves cannot be ruled out. In our sense, one should control it's temptation to go long if Nifty rebounds towards 12950 - 13050. On the flipside, 12800-12730 are to be seen as key supports. Only a sustainable move below 12730 would extend this correction.
Traders are advised to take a note that this is merely a profit booking and even if it extends, it should be considered as a healthy sign. For a time being, avoid aggressive bets and use meaningful declines to go long."
10. 47 AM: Gold outlook
Gold price gained taking cues from weak US jobs data and rise in covid-19 cases across the globe casting doubts over the pace of economic recovery
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said," On Wednesday, Spot gold prices ended marginally lower by 0.12 percent closing at 1805 per ounce as optimism over a potential vaccine against the pandemic continued to weigh on Gold prices; however, a sudden spike in the U.S. unemployment claims limited the fall. The number of Americans applying for the jobless claims increased as the ongoing crisis continued to hamper the labour market in the world's largest economy.The yellow metal also found some support as depreciating U.S. currency made the dollar denominated Gold cheaper for other currency holders. Global central banks are also expected to keep their interest rates low in an attempt to get the economy back on track which is also supportive for Gold. As for today traders can go for BUY in gold at Rs 48300 levels with the stop loss of Rs 47900 levels for the target of 48900 levels. They can also go for BUY in Silver at Rs 59,500 levels, with the stop loss of 58800 levels and for the target of 60800 levels."
10. 34 AM: Market update
Market indices opened flat on Thursday and turned marginally negative by the first hour of session on November series expiry day, amid positive global equities. Sensex was trading 50 points lower at 43,775 and Nifty fell by 11 points to 12,846.
10.25 AM: FII investments
Indian equities have registered huge foreign inflows in the month of November till date, with record investments of Rs 58,694 crore. These investments crossed Rs 50,000 crore on Tuesday after foreign portfolio investors (FPIs) poured in Rs 4,890 crore in the stock markets. The momentum continued the next trading day with investments close to Rs 5,530 crore despite some money going off the table due to profit-booking. Barring one single trading session, the FPIs have remained net buyers all through this month, till date. After an exodus of Rs 61,973 crore in March, there was a further flight of foreign capital in April and September when they withdrew approximately Rs 15,000 crore from equities.
10. 11 AM: Global market update
Asian markets are trading higher reacting to overnight gains made in US markets post the release of November FOMC minutes. US markets came off the day's highs and closed in red as investors seem to be catching their breadth after recent rally. US markets will be closed today on account of Thanksgiving Day. European markets closed flat taking a breather after recent rally on positive coronavirus vaccine news and political uncertainty. Oil&Gas stocks fell while telecom stocks gained.
9. 59 AM: Market outlook
Geojit Financial said in its note,: Inability to float above 13120 after the initial surge yesterday, allowed the anticipated slide to unfold. This has resulted in a bearish engulfing candlestick pattern keeping the 12350 view is in motion. However we would like to first look for a break of 12850 as a bearish confirmation, as planned yesterday. Until then, the first play for the day could be a pull back higher, which could see a loss in momentum on approach to 13000, but could regroup and aim for 13400 once above that."
9. 48 AM: Market outlook
On markets opening --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," After a long time traders were struck by nervousness yesterday when the Nifty broke down over 200 points from the high. The support of 12800 has still not been violated and hence traders can continue holding their positions with a trailing stop loss. If we break 12800, we could drop further to 12500. If we resume the existing uptrend from the current level, we can head to 13200."
9. 34 AM: Stocks to watch today on November 26
Future Retail, DHFL, Siemens, AstraZeneca Pharma, Ashok Leyland, Laurus Labs among others are the top stocks to watch out for in Thursday's trading session
9. 28 AM: Opening session
Market indices opened on a bullish note on November series expiry day, amid positive global equities. Sensex was trading 6 points higher at 43,967 and Nifty gained 11 points to 12,870. SGX Nifty on the Singapore Exchange was rising by 50 points, indicating positive trend in domestic grounds today.
9. 16 AM: Nifty technical outlook
As per RSL Research," NSE-NIFTY rose to new life-time-high of 13,146 level continuing its prior daily up-trend, but later profit booking across the board dragged the index down. Yesterday, global markets too reversed from their higher levels. On the daily chart, the index has formed bearish engulfing pattern. Due to such a dramatic turn in the index, its key technical indicators on the near-term timeframe chart once again reversed down and negatively poised. As per the current set-up, near-term up-move unlikely. On the lower side, the index will initially find support at 12,700 and then at 12,600 levels. However in case of rebound, its life-time-high (13,146 mark) will cap the up-move.
As for the day, support is placed at around 12,996 and then at 12,936 levels, while resistance is observed at 13,097 and then at 13,139 levels."
9.08 AM: FII action
Foreign portfolio investors (FPIs) bought shares worth Rs 24.20 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,840.33 crore in the Indian equity market on 25 November, provisional data showed.
8.50 AM: Market outlook
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said,"Yesterday's market correction indicates the vulnerability of markets at high levels & high valuations. But such profit bookings are desirable since they make markets healthy. The trend of mid-small-cap outperformance is likely to continue. It is important to appreciate that India now is the best emerging market performer and the largest recipient of FII flows during the last 2 months. Market may be discounting the sharp recovery in GDP growth & corporate earnings expected in 2021-22. Also India Inc has done well to control cost & protect margins during this pandemic- triggered crisis".
8. 40 AM: Rupee closing
On the currency front, the rupee settled 10 paise higher at 73.91 amid a weak dollar and positive development on the coronavirus vaccine front
8.30 AM: Closing
After hitting record highs, market indices closed almost 1.5% lower each on Wednesday, tracking profit-booking in index majors and mixed cues from global markets. Reversing the trend from 3 days of consecutive gains, Sensex ended 694 points lower at 43,828 and Nifty fell by 196 points to 12,858.
Ahead of monthly derivatives expiry, Sensex hit a lifetime high of 44,825 today, while Nifty touched a record high of 13,145. Yesterday, Sensex ended 445 points higher at 44,523 and Nifty gained 128 points to 13,055.