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Sensex, Nifty End Higher For Third Day; Jet Airways Jumps Nearly 9%

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Closing Bell: Sensex, Nifty End Higher For Third Day

Indian equity benchmarks ended higher for the third day, led by the gains in Tata Consultancy Services Ltd. and Reliance Industries Ltd.

The S&P BSE Sensex Index ended 0.57 percent higher at 35,716.95 and the NSE Nifty 50 Index ended at 10,728.85, up 0.4 percent.

The market breadth, however, was tilted in favour of sellers. About 1,131 stocks declined and 593 shares advanced on NSE.

Six out of 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty PSU abnk Index's 1.9 percent decline. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 2.86 percent.

Jet Airways Snaps Three-day Decline, Rallies Nearly 9%

Shares of Jet Airways rose as much as 8.9 percent to Rs 319.80.

The company’s founder and promoter Naresh Goyal has agreed to sell the controlling stake, CNBC-TV18 reported quoting sources.

Trading volume was 1.9 times its 30-day average, Bloomberg data showed. The stock fell 62.7 percent so far this year, compared to a 6.2 percent advance in the Sensex.

From Bloomberg: Government To Seek Interim Dividend From RBI This Fiscal Also, Official Says

The practice of interim dividend from the Reserve Bank of India is here to stay, a government official told reporters in New Delhi asking not to be identified citing rules.

Yes Bank Extends Decline, Falls Over 10%

Shares of Yes Bank extended declines and fell as much as 10.1 percent. The stock is set for its worst closing since March 2016.

About 11 lakh shares changed hands in a block deal, Bloomberg reported. Buyers and sellers were not known immediately.

Also Read: India's Fallen Angel Yes Bank Drops by Record in Bond Market

Stocks Moving On Heavy Volumes

TTK Prestige

  • Stock rose as much as 5.2 percent to Rs 7,188.
  • Trading volume was quadruple its 20-day average.

Firstsource Solutions

  • Stock rose as much as 9.5 percent to Rs 52.35.
  • Trading volume was almost quadruple its 20-day average.

Aavas Financiers

  • Stock rose as much as 8.2 percent to Rs 784.85.
  • Trading volume was almost quadruple its 20-day average.

REC

  • Stock fell as much as 10.8 percent to Rs 108.85.
  • Trading volume was double the 20-day average.

Oil Marketers Fall As Crude Strengthens

Shares of oil marketing companies declined in today's trade as the Brent crude rose over 1 percent to $61.27 a barrel.

Setback For Vedanta As Delhi High Court Rejects Plea

European Shares Gain As Politics Continue To Dominate The Scene

European shares rallied, following gains in its Asian peers and the U.S. Brexit remains high on the agenda, with the finishing line for the U.K. Parliamentary vote nearing.

Persistent Systems Jumps The Most In Over Two-And-A-Half Years

Shares of Persistent Systems extended gains for the fourth day and is poised for its longest gaining streak in over three months.

The stock rose nearly 8 percent, the most since March 2016, to Rs 610, its highest levels in over a month.

The stock traded at 11.9 times its estimated forward earnings per share compared to 14.7 times its two-year historical average.

Nifty Trades Above 200-Day Moving Average

Rain Industries Enters Oversold Zone, Shares At Over 14-Month Low

Shares of Rain Industries extended declines for the third day and fell as much as 5.3 percent to Rs 139.20 to Rs 139.20, its lowest levels since September 2017.

The Relative Strength Index was below 30, indicating that the stock may be overbought, Bloomberg data showed. Rain Industries traded at 53.1 times its estimated earnings per share for the coming year.

F&O Check: Nifty 10,700 Put Option Most Active On NSE

Nifty’s 10,700 put option contract was among the most active option contracts on National Stock Exchange.

Premium on the contract fell 53.65 percent to Rs 24.45. Over 22.64 lakh shares were added to the open interest which stood at over 35.30 lakh shares.

Board Resignations Bear No Impact On CEO Selection Process, Says Yes Bank

Yes Bank Ltd. said that the resignations from the board have no impact on the CEO selection process and that the process is on track as per the timeline, according to its stock exchange filing.

"The Nomination and Remuneration Committee and the board will consider proposals for appointment of independent directors and also recommend the name(s) of the new chairman for the approval of RBI on December 13," the lender said.

Market Check: Sensex, Surges Over 300 Points Nifty Above 10,750

  • Indian equity benchmarks traded at day's high.
  • The S&P BSE Sensex Index rose as much as 0.87 percent or 309.92 points to 35,822.16 and the NSE Nifty 50 Index rose as much as 0.68 percent or 72.20 points to 10,575.80.
  • The market breadth, however, was tilted in favour of sellers. About 883 stocks declined and 772 shares advanced on NSE.

Axiscades Engineering Surges After Winning Contracts

Shares of the technology solutions provider rose as much as 11.4 percent to Rs 97.

The company's unit won two key contracts worth $20 million, according to its stock exchange filing. The first contract is with a Global OEM for a design to build test equipment and maintenance of strategic systems. The other contract is for building subsystems of the full motion simulator.

The trading volume more than six times its 20-day average, Bloomberg data showed.

Essar Steel Insolvency Case: Hearings Begin Before NCLT, Ahmedabad

Money Market Update: Rupee Pares Some Of its Early Gains

The Indian rupee erased early losses and depreciated as much as 0.27 percent to 70.59 against the U.S. dollar. The home currency, however, pared some of its early gains to trade at 70.69 against the greenback.

BSE Telecom Index Set For Its Best Month So Far This Year

The S&P BSE Telecom Index rose 3.89 percent so far this month and is set for its best monthly performance this year. The rally was led by gains in Vindhya Telelinks Ltd., Sterlite Technologies Ltd. and Bharti Airtel Ltd.

Market Check: Sensex, Nifty Hold Gains

  • Indian equity benchmarks held gains.
  • The S&P BSE Sensex Index traded 0.53 percent higher at 35,700.40 and the NSE Nifty 50 index traded at 10,733.80, up 0.45 percent.
  • About 810 stocks advanced and 799 shares declined on National Stock Exchange.

Arvind Trades Ex Brands And Engineering Business

Shares of the textile maker traded at Rs 109.90 apiece after it turned ex-date for the proposed demerger of the branded apparel and engineering businesses into separate entities — Arvind Fashions and Anveshan Heavy Engineering.

Shareholders will get one fully paid-up equity share of Rs 4 each of AFL for every five shares held in Arvind, and one share of Rs 10 each of AHEL for every 27 shares, the Lalbhai Group flagship said in its exchange filing.

ONGC Falls For Third Day, Trades Near 29-Month Low

Shares of ONGC declined for the third straight trading session and fell as much as 1.6 percent to Rs 143.70, its lowest since June 2016.

The stock declined 21 percent in the past 12 months compared to a 5.3 percent in the Sensex.

Gruh Finance Gains After A Block Deal

Shares of Gruh Finance rose as much as 2.3 percent to Rs 284.45.

About 12.2 lakh shares changed hands in a block deal on National Stock Exchange, according to Bloomberg data. Buyers and sellers were not known immediately.

The stock fell 4.4 percent in the last five days and advanced 2.2 percent in the past 30 days, according to Bloomberg data.

Vadilal Enterprises Locked In Lower Circuit After Posting Loss In Q2

Shares of Vadilal Enterprises were locked in the lower circuit of 5 percent at Rs 855 after the company reported a loss in September quarter compared to the year-ago period's profit.

Key earnings highlights (Q2, YoY)

  • Revenues up 14.2 percent at Rs 126 crore.
  • Net loss at Rs 1 crore versus net profit at Rs 1.3 crore.

DHFL Falls The Most In Over Three Weeks

Shares of Dewan Housing Finance Corporation Ltd. (DHFL) fell as much as 9.3 percent, the most since Nov. 05, to Rs 201.40.

The stock has declined 62.7 percent so far this year compared to a 6.1 percent advance in the Sensex.

Yes Bank Worst Performer On Sensex, Nifty

Shares of Yes Bank fell as much as 4.9 percent to Rs 173.65. The stock was the worst performer on Sensex and Nifty.

Sparring promoters of Yes Bank are inching towards a truce, but there was no clarity late on Tuesday over the exact status of the talks with one camp claiming it's at an advanced stage and the other being not on the same page, PTI reported.

The Rana Kapoor camp said settlement talks are at an "advanced stage" with the draft consent terms under discussion which speaks of recognising both the groups as "equals", while the Madhu Kapur family maintaining that the “discussions are still on”, according to PTI report (Read the full story here).

Also Read: Moody’s Downgrades Yes Bank On Corporate Governance Concerns

Opening Bell: Sensex, Nifty Open Higher

Indian equity benchmarks extended gains for the third day. The S&P BSE Sensex Index rose as much as 0.46 percent to 35,675 and the NSE Nifty 50 Index rose as much as 0.36 percent to 10,724.50.

The market breadth was tilted in favour of buyers. Eight out of 11 sectoral gauges compiled by National Stock Exchange advanced, led by the NSE Nifty Media Index's 0.97 percent gain. On the flipside, NSE Nifty Realty Index was the top sectoral loser, down 0.44 percent.

RBI’s Fresh Bond Purchase Plan For December May Boost Bonds

The Indian rupee opened weaker against the U.S. dollar. The home currency further further depreciated as much as 0.14 percent to 70.89 against the greenback.

With Indian stocks rising and crude declining, some investors are slowly turning bullish on the rupee. Traders, though, will await the results of the elections being held in five states before taking a much firmer view.

Sovereign bonds are likely to gain after the Reserve Bank of India announced a fresh bond purchase program for December to inject liquidity into the banking system. The central bank will buy Rs 40,000 crore of bonds next month, an amount equal to its announced purchase for November and the month earlier.

The 10-year bond yield rose one basis point to end at 7.73 percent, having pushed higher on Monday itself, although with global crude oil prices staying around the $60 dollar a barrel mark, bond prices could head higher in coming days.

Your Complete Trade Setup

F&O Cues

  • Nifty November future closed trading at 10,685,  discount of 1 point.
  • Nifty November open interest down 18 percent; Nifty Bank November open interest up 3.6 percent.
  • Max open interest for November series at 11,000 call option (open interest at 28.6 lakh shares)
  • Max open interest for November series at 10,500 put option (open interest at 38.4 lakh shares)

Stocks In F&O Ban

  • In Ban: Adan Enterprises, Adani Power, Jet Airways
  • Out of Ban: DHFL

Put-Call Ratio

  • Nifty PCR at 1.74 from 1.64.
  • Nifty Bank PCR at 1.37 from 1.34.

Brokerage Radar: UBS On Yes Bank, Citi On India Commercial Vehicles

CLSA on Astral Poly

  • Maintained ‘Buy’ with a price target of Rs 1,225.
  • Rex acquisition adds a new growth dimension.
  • Adhesives operating leverage benefits to drive margin expansion.
  • Pipes business showing steady growth.

UBS on Yes Bank

  • Maintained ‘Sell’ with a price target of Rs 150.
  • Believe NPL recognition has yet to take place and is not fully priced in.
  • Catalysts: RBI divergence report, track-record and pedigree of new CEO and next fund raising.
  • Believe the risk-reward is still unfavourable.

Citi on India Commercial Vehicles

  • Expect 7-11 percent decline in commercial vehicle sales over FY20-21 as history is not on the side of the cycle.
  • Concerns: rising interest rate, difficulty in getting credit, deceleration in toll road collection.
  • Concerns: duration of up-cycle, BS-VI transition, inability to push through fuel price hikes.

Trading Tweaks: Arvind, Jai Prakash Power, Paramount Communications

  • Arvind ex-date for demerger into three entities.
  • Jai Prakash Power Ventures to move into ASM Framework.
  • Paramount Communications price band revised to 10 percent.

Bulk Deals: Century Textiles & Industries, Veto Switchgear Cable

  • Veto Switchgear Cable: Promoter Pushpa Devi Gurnani acquired 1.7 lakh shares or 0.91 percent equity at Rs 86.81 each.

Century Textiles & Industries

  • Gothic Corporation acquired 6.3 lakh shares or 0.56 percent equity at Rs 904.55 each.
  • GHI LTP sold 6.3 lakh shares or 0.56 percent equity at Rs 904.55 each.

Offerings: CPSE ETF

  • Reliance MF-managed CPSE ETF 3rd Further Fund Offer opens, close on Nov. 30; gets anchor bids of Rs 13,300 crore versus Rs 2,400 crore offered.

Stocks To Watch: Future Retail, Lupin, Srei Equipment Finance

  • Lupin’s Ramesh Swaminathan resigns as the Chief Financial Officer of the company with effect from December end. According to the exchange filing, he will pursue other responsibilities outside the pharmaceutical industry.
  • Competition Commission of India Approves LIC’s Acquisition of up to 51 percent equity stake in IDBI Bank.
  • Future Retail-Amazon deal likely in 10 days, in which Amazon will buy around 9.5 percent stake in Kishor Biyani-led company and both the parties are in advanced stage of talks for the deal. (Press Trust of India)
  • Axiscades Engineering Technologies arm won two key contracts worth $20 million. The first contract is with a Global OEM for a design to build test equipment and maintenance of strategic systems. The other contract is for building subsystems of full motion simulator.
  • Srei Equipment Finance and Nordic Investment Bank signed a loan agreement for financing acquisition or leasing of industrial equipment designed or produced in the Nordic-region based bank’s member countries. The new loan program will be worth 20 million euro and has a maturity of eight years.
  • Orient Electric entered into a strategic partnership with Italy based De’ Longhi Group, in which three international premium small appliances brands will enter India namely De’ Longhi, Kenwood and Braun. The company will have exclusive rights to market and sell these brands in India.
  • Inox Wind signed a pact with AMSC for 3MW wind turbine in India. Currently the company has a license for 2MW range of wind turbines and stated in its press release that with this new agreement energy yields will improve also support the competitive tariff environment currently present under the auction regime in the country.
  • Merck: Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers approved the acquisition of the biopharma business of the company to its arm ‘Merck Specialties Private Limited’ by way of slump sale.

Key Events To Watch This Week

  • Presidents Donald Trump and Xi Jinping plan to meet at the G-20 summit in Argentina that kicks off on Friday.
  • Federal Reserve Chairman Powell addresses the New York Economic Club on Wednesday.
  • Thursday sees the release of the minutes from the Federal Open Market Committee’s November meeting.

Nifty Futures Hint Positive Start; Asian Stocks Mixed

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.35 percent to 10,728 as of 8:40 a.m.

Asian stocks traded mixed Wednesday as investors mulled comments from Federal Reserve officials and the chances of a breakthrough in the U.S.-China trade dispute.

Shares posted modest losses in Sydney, Seoul and Shanghai, were little changed in Tokyo and edged higher in Hong Kong.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Commodity Cues: Brent Crude Hovers Around 60/Barrel

  • West Texas Intermediate rose 0.9 percent to $52.09 a barrel.
  • Brent crude traded 0.56 percent higher at $60.55 per barrel.
  • Gold lost 0.1 percent to $1,214.18 an ounce.

Also Read: Crude Pushes Higher After Report Shows Gasoline Stocks Decline

London Metal Exchange:

  • Aluminium halted a two-day rally, down 1.08 percent.
  • Copper ended lower for the third day, down 1.09 percent.
  • Zinc ended lower for the third day, down 2.1 percent.
  • Nickel ended lower for the seventh day, clocking its longest losing streak in over 13 months.
  • Lead ended lower for the fourth day, registering its longest losing streak in over two years.
  • Tin ended 3.3 percent lower.

. Read more on Markets by BloombergQuint.