Market rundown by Vinod Nair, Head of Research, Geojit Financial Services
“Market traded in a positive bias on account of renewed buying in IT stocks and expectation of sovereign rating upgrade. Domestic fundamentals are better while a positive upgrade in rating will provide more conviction to investors on the government’s reforms agenda.”
3:39 PM Nifty PSU Banks fall
3:38 PM Sectoral Trend
3:36 PM Top Sensex gainers and losers
3:34 PM Broader Markets
In broader markets, the BSE Midcap and BSE Smallcap indices ended 0.6% and 0.5% higher
3:32 PM Markets at close
The S&P BSE index ended the day at 33,679, up 91 points while the broader Nifty50 index settled at 10,389, up 40 points
BSE to auction investment limits for Rs 4,000-cr govt bonds
Leading stock exchange BSE on Friday said it will auction investment limits on Monday, enabling foreign investors to purchase government bonds nearly worth Rs 4,000 crore.
The auction will be conducted on BSE’s ‘ebidexchange’ platform from 1530 hrs to 1730 hrs, after the close of market hours, the exchange said in a circular.
The debt auction quota gives overseas investors the right to invest in the debt up to the limit purchased.
Theresa May steps up lobbying efforts to broaden Brexit talks with EU
British Prime Minister Theresa May is stepping up her lobbying efforts to broaden Brexit negotiations with the European Union to future relations and trade, as the talks bog down on preliminary issues.
May said today that she will hold meetings in Brussels, including with EU Council President Donald Tusk, about progress in the talks, which must be completed well before Britain leaves the bloc in March 2019.
She sidestepped questions about how much Britain would pay to settle its EU financial accounts, saying talks will look “ahead to the future deep and special partnership that I want with the European Union.”
HDFC Life to raise exposure to capital goods stocks on govt infra push
HDFC Standard Life Insurance Co is looking to invest more in the capital goods sectors and a range of companies that are expected to benefit from a major government push to build more homes and roads.
Funds are likely to be put into cement makers, suppliers of building materials such as tiles and paints, and financiers of the road and housing projects, Prasun Gajri, chief investment officer at HDFC Life told Reuters.
Uber’s $10-bn stock sale deal with SoftBank shrouded in data breach scandal
A newspaper advertisement for an Uber Technologies Inc stock sale was juxtaposed on Wednesday with a report that the ride-service provider had covered up a data hack – something of a metaphor for Uber, a company with boundless investor interest, but whose penchant for rule-breaking has led to a series of scandals.
2:30 PM Market Check
Action Construction zooms over 100% in one month; stock hits new high
Action Construction Equipment hit a new high of Rs 156, up 10% on the BSE, extending its 60% surge of the past two weeks after the company reported nearly three-fold jump in its net profit at Rs 11 crore in September 2017 quarter (Q2FY18). The company engaged in transport related services business had posted profit of Rs 4 crore in the same quarter of the last fiscal year.
RIL sells stake in US Marcellus shale assets to BKV Chelsea for $126 mn
Reliance Industries (RIL) on Friday announced that a subsidiary of its Reliance Holding USA has closed the sale of its upstream Marcellus shale assets in America to BKV Chelsea for $126 million.
The Mukesh Ambani-led RIL said that Reliance Marcellus II has sold its interest in the shale gas assets in northeastern and central Pennsylvania state in the US to BKV Chelsea, an oil and gas affiliate of American investment firm Kalnin Ventures.
Bajaj Finserv offers lowest interest rate of 8.30% on home loans
Bajaj Finserv, through its lending arm, Bajaj Finance Ltd., announced the lowest ever interest rates on home loans and home loan balance transfer in its limited period offer.
Home buyers can now avail a loan at 8.30 per cent for a loan value above Rs 30 lakh. Currently, it is one of the lowest interest rates offered by any financial institution in the country.
1:35 PM Top Sensex gaienrs and Losers
1:20 PM Slips in trade
Shares of Bata India fell 3% intraday on Friday as investors turned cautious after Motilal Oswal downgraded the stock.
The broking firm downgraded the stock to sell, with a target of Rs 578, a downside of 23%
1:05 PM Markets check at 1:00 pm
Reliance Securities on NALCO
NALCO delivered a mixed performance in 2QFY18, with Alumina sales volume surging 31% YoY and 47% QoQ to 380,000 tonnes. However, realisation at US$311/tonne was lower than estimate, which along with higher input costs offset the benefit of higher volumes.
On the Aluminium front, sales volume increased 14% YoY and 27% QoQ to 113,000 tonnes, but EBIT loss widened due to lower premium, adverse product-mix and higher power/other input prices.
However, going ahead, we expect NALCO’s profitability to improve as spot alumina is currently trading at ~US$465/tonne and we expect 3QFY18E average alumina prices to be substantially higher than that seen in 2QFY18 and LME aluminium prices too are stable. We are positive on the stock with a Target Price of Rs 92.
Implications of Insolvency ordinance
12:16 PM Sensex heatmap in noon trade
Infosys hits over three-month high
First-time investors should stay away from closed-end funds
Closed-end mutual fund schemes serve two purposes: One, it does not allow the investor to time the market, or exit if things get too volatile.
LIC may get Irdai breather on 15% investment cap
BSE Midcap, smallcap indices hit new high
The S&P BSE Midcap and the S&P BSE Smallcap indices hit their respective new high on the BSE on Friday, following an extending rally in infrastructure, auto ancillary, education, textiles and public sector banks.
The S&P BSE Smallcap index hit a new high of 18,064.54, while the S&P BSE Midcap index touched a fresh high of 16,937.27 on the BSE in intra-day trade. Both these indices surpassed their previous high of 18,032.91 and 16,850.56, respectively, touched on November 7, 2017 in intra-day trade. READ MORE
10:33 AM Markets check
At 10:30 am, the S&P BSE Sensex was trading at 33,687, up 99 points, while the broader Nifty50 was ruling at 10,386, up 37 points.
Nifty roll at 16%, is highest in last 7 months (against 9% last 3 months average) and Market wide roll at 11% in-line with 3 months average of 10%;. Nifty roll is trading at 35-36 points on screen.
Market-wide OI stands at 5.5bn shares, highest in last 12 months (up by 6% as compared to previous month same time). BANKNIFTY OI has also increased by 22% and stands at 2.6mn shares, highest in last 4 months. NIFTY OI on the other hand has been reduced by 12% compared to last month and currently stands at 25.3mn shares.
Swaraj Engines surges 11%
LIC Housing: Should you buy into correction?
Things have lately not been in favour of LIC Housing, given that the stock has lost momentum after it peaked at Rs 794 in August with the decline accentuating after its September quarter (Q2) results were declared on October 30. Now trading at Rs 601, the stock has corrected 24 per cent since its peak, and is among the underperformers in recent times.
9:35 AM Sectoral trend
Christopher Wood on India
The odds of Narendra Modi-led Bharatiya Janata Party (BJP) winning the Gujarat election for the sixth consecutive time remain high, though it is likely that its majority will decline from the victory in the last poll held in 2012, says Christopher Wood, managing director & equity strategist at CLSA.
One strategic blunder, Wood says in his weekly note GREED & fear, which the Congress under the still unconvincing leadership of Rahul Gandhi has made is that it is fighting the campaign on the national issues, such as goods and services tax (GST) and demonetisation.
9:26 AM Sensex heatmap at open
9:21 AM Markets at open
At 9:19 am, the S&P BSE Sensex was trading at 33,664, up 76 points, while the broader Nifty50 was ruling at 10,371, up 23 points.
9:15 AM Stocks in news
Bharti Airtel, Camlin Fine Sciences, Skipper, LIC Housing, Cox & Kings, Aditya Birla Money and Swaraj Engines etc
Derivative strategy on Nifty by Chandan Taparia
NIFTY – BULL CALL SPREAD
BUY 1 LOT OF 10350 CALL @ 70
SELL 1 LOT OF 10450 CALL @ 30
Technical calls by Motilal Oswal Securities
Last Close: Rs 736
Stop Loss: Rs 722
Derivative strategy on Dish TV by HDFC Securities
Buy Dish TV November 80 call at Rs 2
Stop loss: Rs 1
Target: Rs 4.50
Devangshu Datta on Nifty, Bank Nifty, Hindalco, Adani Ports, HCL Tech
Chinese markets extend fall
Although solid global economic growth and strong corporate earnings have underpinned shares in Asia and many other parts of the world, a tumble in mainland Chinese shares on Thursday caught some investors’ attention.
The CSI300 index fell 3% on Thursday, its biggest decline in almost a year and a half, on concerns about rising Chinese bond yields. The index extended losses on Friday and was trading 0.6% lower.
Asian shares hovered below their 10-year peak. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked down 0.1% in early trade, led by 0.3% fall in Australian shares. The MSCI index hovered still just 0.5% below its 10-year peak hit earlier this week.
Japan’s Nikkei fell 0.6% after a market holiday on Thursday while US stock futures ESc1 were little changed after shortened trading on Thursday.
At 8:42 am, the Singapore-traded SGX Nifty, an early indicator of NSE Nifty50’s performance, was little changed at 10,370.
8:43 AM Good Morning!
Welcome to Business Standard’s market liveblog.
First Published: Fri, November 24 2017. 15:31 IST