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Shares of the Pune-based real estate developer rose as much as 17.5 percent, the most in over a month, to Rs 398.80.

Avinash Gorakshakar told BloombergQuint that Kolte-Patil Developers which primarily dealt in real estate market of Pune is expanding in Mumbai and Bangalore and some of its projects in Mumbai will start getting monetised from FY19.

Shares of the textile maker rose as much as 5.5 percent to Rs 348.80 after the company said its board will meet on Dec. 5 to discuss issuing bonus shares to its existing shareholders.

  • Talbros Automotive: The stock rose 18.64 percent to record high of Rs 298.50 after Ventura Securities initiated coverage on the stock with a 'Buy' rating for target price of Rs 353.
  • VIP Industries: The stock rose for second day in a row and has gained over 21 percent since last Tuesday.
  • Mcleod Russel: Tea stocks were buzzing in trade tracking rise in tea prices. The stock has risen nearly 13 percent this week and volumes were 9 times its 20-day average.
  • Sadbhav Infra: The stock surged nearly 7.5 percent to Rs 144 after 30 lakh shares changed hands at Rs 133 per share in two blocks.
  • Somany Ceramics: The Delhi-based floor and wall tiles maker rose as much as 1.8 percent to Rs 869.55. Trading volume was 26.2 times its 20-day average.
  • Tata Coffee: The Bangalore-based coffee maker rose as much as 7.6 percent, the most since Nov. 21, to record high of Rs 174. Trading volume was 9.3 times its 20-day average.
  • Indraprastha Gas: The Delhi-based compressed natural gas retailer rose as much as 6.26 percent, the most in over three months, to record high of Rs 331.80. Trading volume was 6.8 times its 20-day average.

Shares of tea manufacturers were trading higher in an otherwise subdued session.

  • McLeod Russel rose 8.5 percent
  • Tata Coffee rose 6.3 percent
  • Rossell India advancded 6.8 percent
  • Jayshree Tea gained 13.7 percent
  • CCL Products rose 3 percent
  • Harrisons Malayalam rose 18.75 percent
  • Assam Company rose 20 percent
  • Peria Karamalai rose 10 percent

Shares of the Delhi-based electrical power equipment maker rose as much as 1.8 percent, the most since Nov. 23, to Rs 93.75 after it won orders worth Rs 64 crore for Raipur sewage treatment plants.

Shares of most of cement makers were trading higher in an otherwise subdued trading session.

  • Ambuja Cemnts rose 0.69 percent
  • Shree Cement advanced 0.71 percent
  • ACC rose 0.28 percent
  • Dalmia Bharat advanced 2.5 percent
  • Ramco Cements gained 1.23 percent
  • OCL India rose 2.7 percent
  • JK Cement gained 0.86 percent
  • Prism Cement advanced 1.8 percent
  • JK Lakshmi Cement rose 0.64 percent
  • Orient Cement rose 0.24 percent

The Haryana-based auto component maker rose as much as 18.64 percent to record high of Rs 298.50 after Ventura Securities initiated coverage on the stock with a 'buy'.

Ventura Securities said:

  • Initiated ‘Buy’ rating with price target of Rs 353
  • Talbros to resume high growth trajectory after a period of consolidation
  • Expect revenue, operating income and net profit to grow at a compound annual growth rate of 14 percent, 16.5 percent and 33.5 percent respectively till March 2020.
  • Electric vehicles are a threat but impact coming into play post 2023.
  • Forgings segment to boost because new international orders from OEMs.
  • Expect JVs to see positive traction; Gasket segment to resume growth trajectory.
  • Heat shields and aftermarket segment will help it achieve high growth.
  • Texmaco Rail & Engineering: The Kolkata-based railway coach and components maker rose as much as 10.51 percent to Rs 125.70.
  • Harrisons Malyalam: The Cochin-based cultivator of tea, rubber, cocoa and cardamom rose as much as 20.43 percent to Rs 114.35
  • Tata Global Beverages: The Kolkata-based coffee maker rose as much as 3.77 percent to record high of Rs 287.90.
  • VIP Industries: The Mumbai-based luggage maker rose as much as 12.74 percent, the most since Nov. 22, to record high of Rs 393.
  • Peninsula Land: The Mumbai-based real estate developer rose as much as 5.7 percent to Rs 36.85.
  • NIIT: The Delhi-based educational service provider rose as much as 4.2 percent, the most since Nov. 23, to Rs 103.4.
  • 63 Moons Technologies: The Mumbai-based software developer rose as much as 4.97 percent, the most since Nov. 24, to Rs 128.75.
  • Indian equity benchmarks were trading on a subdued note as gains in HDFC twins were offset by losses in Reliance Industries, ITC and ICICI Bank.
  • The S&P BSE Sensex fell 0.17 percent to 33,667 and the NSE Nifty 50 Index declined 0.11 percent.
  • The mid cap and small cap shares were outperforming their larger counterparts as the S&P BSE MidCap Index rose 0.3 percent and the S&P BSE SmallCap Index advanced 0.4 percent.
  • Ten out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Metal Index's 0.66 percent gain. On the other hand, the S&P BSE Telecom index was the top sectoral loser, down 0.63 percent.
  • From the Nifty 50 basket of shares, 24 were advancing while 26 were declining.

Shares of the Ahmedabad-based drug maker rose as much as 4.8 percent, the most since Nov. 20, to Rs 684 after Credit Suisse initiated coverage on the stock with an 'outperform'.

Credit Suisse said:

  • Initiated ‘Outperform’ rating with a price target of Rs 770.
  • Eris is a pure play in India pharma market with scalable business model.
  • It has generated high free cash flow and used the same to accelerate growth.
  • Free cash flow generation at 60 percent of Operating Income.
  • Eris has the best return profile and growth in the sector
  • Return on capital employed at 100 percent and expected profit to grow at a compound annual growth rate of 24 percent over the financial years till March 2020.
  • Turnaround of recent four loss-making acquisitions could re-rate the stock.
  • With synergies coming in, market should be convinced on Eris’ ability to accelerate growth inorganically.
  • Rupee rose as much as 0.22 percent to 64.36 per U.S. dollar, its highest level in over two months.

Shares of the Mumbai-based fertiliser maker rose as much as 7.6 percent, the most in over a month to Rs 248 after Franklin Templeton Mutual Fund bought 17.81 lakh shares or 0.9 percent equity stake at Rs 230 each.

Shares of the Mumbai-based drug maker fell as much as 3.12 percent, the most since Nov. 7, to Rs 572.25 after the U.S. drug regulator issued Form 483 with seven observations for its Baddi plant in Himachal Pradesh, the company said in a stock exchange filing.

The company will be providing a comprehensive response to the observations made by the FDA and Baddi unit contributes approximately 10 percent of the revenue of U.S. sales, the stock exchange filing added.

Shares of the debt-laden telecom service provider fell as much as 9.36 percent, the most since Nov. 15, to Rs 12.10 after China Development Bank became the first lender to file insolvency proceedings against Reliance Communications, according to two people familiar with the matter.

  • Would like to see more innovative activity on deal flow side
  • 75 percent invested in our second fund; financials, consumer dominate the theme
  • Put consumer sector in very large bucket, seeing a lot of demand
  • No proposal seen in fresh capex companies
  • Seeing India's current position, we suggest investors to be flexible
  • Would like to see more consolidation happening in the market
  • Pharma space is interesting; companies backed by higher r&d spend preferred
  • More opportunities available in market for private equity consumers
  • Multiples alternate asset management is preparing for third fund; should hit markets early next year
  • Investors can find many opportunities in private companies like PVR
  • Many small pockets of excellence available in M&A market
  • Very confident on fin tech companies, invested in Dream11
  • RBL Bank is another financial company we invested in
  • Betting on Vastu Housing Finance on affordable housing push
  • Sectors like infra, cement, fmcg will do well going forward
  • Believe earnings will improve in future, 2018 will be a fantastic year

Shares of the Mumbai-based infrastructure construction company rose as much as 4.35 percent, the most since Nov. 24, to Rs 96.05 after it completed implementation of S4A scheme.

Highlights of S4A Scheme:

  • The company has reduced its total debt by Rs 2,376 crore.
  • Transferred 51 percent stake in subsidiary Hitodi Infrastructure to Eight Capital for debt of Rs 2,000 crore.
  • Transferred 5 acres of property in Jogeshwari to Lodha Developers for debt of Rs 376 crore.
  • Bharat 22 Exchange Traded Fund opened for trading at Rs 36.30 and touched high of Rs 37.40 and low of Rs 35.97.

Indian equity benchmarks edged lower led by losses in power and state-run oil marketing companies.

The S&P BSE Sensex fell 0.12 percent to 33,684 and the NSE Nifty 50 Index declined 0.24 percent to 10,374.

The mid cap and small cap shares were outperforming the large cap shares. The S&P BSE MidCap Index rose 0.18 percent and the S&P BSE SMallCap Index advanced 0.37 percent.

Twelve out of 19 sector gauges were trading higher led by the S&P BSE Industrials Index's 0.26 percent gain. On the other hand, the S&P BSE Power Index was the top sectoral loser, down 0.34 percent.

  • Rupee opened lower at 64.55 per dollar against yesterday's close of 64.50.

Some relief is here for Indian bonds and they are seen breaking their five-day losing streak after the central bank said India’s government will repurchase up to Rs 30,000 crore of debt. The auction will be conducted tomorrow. Later in the day, RBI will auction Rs 11,400 crore of 11 state bonds.

The Indian rupee may open slightly lower against the dollar in line with other Asian currencies as investors monitor progress of U.S. tax reform. Implied opening from forwards suggests onshore dollar-rupee will start trading around 64.5390.

  • Nifty November futures closed at 10,418.5, premium of 19 points versus 19.6 points.
  • Nifty December Futures trading at 10,457, premium of 57 points.
  • All series- Nifty open interest up 2 percent , Bank Nifty open interest down 2 percent.
  • Rollover-Nifty at 32 percent, Bank Nifty at 15 percent.
  • India VIX at 13, down 3.5 percent.
  • Max open interest for Nov series at 10,500 Call, open interest at 61.4 lakhs, open interest up 3 percent.
  • Max open interest for Nov series at 10,300 Put, open interest at 60.9 lakh, down 1 percent.

UFO Moviez

  • SBI Mutual Fund sold 2 lakh shares or 0.7 percent equity stake at Rs 485.05 each.

Cantabil Retail

  • Seminary Tie Up Pvt Ltd. sold 2.70 lakh shares or 1.7 percent equity stake at Rs 75 each.

Pincon Spirit

  • Capston Capital Partners sold 2.29 lakh shares or 0.5 percent equity stake at Rs 41.6 each.

BCL Industries

  • Sarva Priya Exports Pvt Ltd. sold 2.20 lakh shares or 1.6 percent equity stake at Rs 137.2 each.

Gitanjali Gems

  • Ramesh Shah sold 18 lakh shares or 1.5 percent equity stake at Rs 93.05 each.

Websol Energy Systems

  • India Max Investment Fund sold 1.75 lakh shares or 0.7 percent equity stake at RS 113.71 each.

Rallis India

  • Franklin Templeton Mutual Fund bought 17.81 lakh shares or 0.9 percent equity stake at Rs 230 each.
  • Bharat 22 ETF to list today on exchanges.
  • L&T seeks relief from Telangana Government on metro project delay.
  • IDBI Bank’s board approved sale of 7.4 million shares or 1.5 percent stake in NSE.
  • Punjab National Bank to sell upto 99.94 lakh shares in PNB Housing Finance on Nov. 28 & Nov. 29 via OFS.
  • Tata Power Solar commissions 300 kilowatt rooftop solar project in Delhi.
  • TVS Electronics says shareholders approved scheme of amalgamation between Prime property holdings and self.
  • HDIL seeks shareholders nod to issue two crore warrants to promoter.
  • Patel Engineering completes implementation of S4A Scheme.

For a complete list of stocks to watch, click here

Credit Suisse on Eris Lifesciences

  • Initiated ‘Outperform’ rating with a price target of Rs 770.
  • Eris is a pure play in India pharma market with scalable business model.
  • It has generated high free cash flow and used the same to accelerate growth.
  • Free cash flow generation at 60 percent of Operating Income.
  • Eris has the best return profile and growth in the sector
  • Return on capital employed at 100 percent and expected profit to grow at a compound annual growth rate of 24 percent over the financial years till March 2020.
  • Turnaround of recent four loss-making acquisitions could re-rate the stock.
  • With synergies coming in, market should be convinced on Eris’ ability to accelerate growth inorganically.

Motilal Oswal on Mahanagar Gas

  • Initiated ‘Neutral’ rating with price target of Rs 1,219.
  • Expect total volumes to grow at a compound annual growth rate of 11 percent over the financial years till March 2022, led by conversions and expansion in new areas.
  • Industrial demand in Mumbai remains low, Raigad to offer good growth area.
  • Rising concerns on pollution to boosting CNG sales.
  • Expect continued growth from the under-penetrated commercial segment.
  • PNGRB’s bidding round could be opportunity for expansion beyond Mumbai.
  • Expect operating income and earnings per share to grow at a compound annual growth rate of 7 percent each till March 2020. Expect strong free cash flow generation with higher dividend payout during the period.
  • Bull Case Target Price of Rs 1,580

Ventura Securities on Talbros Automotive

  • Initiated ‘Buy’ rating with price target of Rs 353
  • Talbros to resume high growth trajectory after a period of consolidation
  • Expect revenue, operating income and net profit to grow at a compound annual growth rate of 14 percent, 16.5 percent and 33.5 percent respectively till March 2020.
  • Electric vehicles are a threat but impact coming into play post 2023.
  • Forgings segment to boost because new international orders from OEMs.
  • Expect JVs to see positive traction; Gasket segment to resume growth trajectory.
  • Heat shields and aftermarket segment will help it achieve high growth.

ICICI Direct on Time Technoplast

  • Initiated ‘Buy’ rating with price target of Rs 230.
  • Expansion in value added products and new launches to boost Time Technoplast.
  • VAP’s revenue contribution to sharply increase to 23 percent by March 2020.
  • Better utilisation, stable raw material prices and lower interest outgo to help drive profitability.
  • Expect revenue and net profit to grow at a compound annual growth rate of 16 percent and 25 percent respectively till March 2020.
  • Better earnings growth to expand return on equity and return on capital employed to 15 percent and 18 percent by March 2020.
  • Composite cylinder: Driver for future revenue growth; Company to launch this product by the second half of the next financial year.

Edelweiss on Bharat Electronics

  • Maintained ‘Buy’ with price target of Rs 240.
  • BEL successfully moved up the defence manufacturing value chain.
  • Rising demand for electronic warfare systems, augurs well for the company.
  • Focus on improving capabilities to provide competitive edge.
  • Do not foresee any major challenge on execution and operating margins over the next three years.
  • Expect orders worth Rs 70,000 crore to be awarded over the next three years.
  • Expect order book and net profit to grow at compound annual growth rate of 14 percent and 17 percent till March 2019.

UBS on UltraTech Cement

  • Maintained ‘Neutral’ with price target of Rs 4,590.
  • Petcoke ban impacts 20 percent of its clinker capacity.
  • Management would reconsider capex on petcoke switch after regulatory clarity.
  • Management more confident of a ramp up in JPA assets after the September quarter.
  • Stock price factors in management optimism.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India fell 0.22 percent to 10,395.

Stocks in Asia fluctuated with Japanese indexes heading higher as the yen reversed earlier gains. The dollar was steady amid uncertainty over the U.S. tax bill.

The yen headed lower after a rally partly fueled by a Kyodo News report that Japan detected radio signals suggesting North Korea is preparing for a missile launch. Equity benchmarks rose in Australia and South Korea.

The Bloomberg dollar index was little changed as the U.S. tax debate gets underway. Oil fell for a second day after slumping from two-year highs with traders questioning OPEC’s strategy to extend supply cuts.

Here are some key events coming up this week:

  • The U.S. Senate as soon as this week could debate and vote on tax-cut legislation.
  • President Trump will meet with Democratic and Republican congressional leaders Tuesday to discuss a federal spending plan to prevent a partial shutdown and keep the government open after current funding expires Dec. 8.
  • Bank of England publishes annual stress tests Tuesday alongside its Financial Stability Review looking at the health of U.K. banks.
  • In China, the official and Caixin manufacturing PMIs are expected to show mostly steady momentum.
  • Japan industrial production is forecast to have rebounded in October, but CPI may show a sharp divergence between headline and core inflation, Bloomberg Intelligence said.
  • The second print of third-quarter U.S. GDP on Wednesday may be revised up thanks to consumer spending and inventory accumulation, Bloomberg Intelligence said. The core PCE deflator, the Fed’s preferred gauge of inflation, is due Thursday.
  • OPEC meets in Vienna on Thursday.

Commodities

  • West Texas Intermediate crude extended a decline, falling 0.6 percent to $57.76 a barrel.
  • Gold was steady at $1,293.91 an ounce, around the highest in over five weeks.
  • Copper on the LME fell for a second day, down 0.7 percent to $6,897 a ton.

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