KEY HIGHLIGHTS
Foreign Investors Net Buyers
Overseas Investors in Indian equities remained net sellers for the second straight day on Tuesday.
Foreign portfolio investors net sold equities worth Rs 635.35 crore, according to data from the National Stock Exchange.
Domestic institutional investors turned net sellers and sold equities worth Rs 558.67 crore.
Institutions net bought Rs 2,300.86 crore worth of equities in December so far, and net sold Rs 13,151.03 crore worth of Indian equities till date in 2022.
Yield On The 10-Year Bond Rises
The yield on the 10-year bond rose marginally to 7.25% on Tuesday.
Source: Bloomberg
Rupee Declines Sharply Against The U.S. Dollar
The rupee slipped sharply against the U.S. dollar to settle at 82.6 on Tuesday, falling nearly 81 paise by 1% as compared to the Monday close.
The local currency closed at 81.79 on Monday.
Source: Bloomberg
Closing Bell
The Indian benchmark indices closed lower in trade amid mixed global cues on Tuesday.
The S&P BSE Sensex closed 208 points lower, down by 0.33% at 62,626.36. While, NSE Nifty 50 ended the trading day 54 points lower, down by 0.29% at 18,646.75.
The markets snapped their eight day winning streak on Friday and closed flat on Monday.
Among the Nifty 50 stocks, 19 advanced, while 30 declined and one remained unchanged.
Adani Enterprises Ltd., Hindustan Unilever Ltd., Nestle India Ltd., Bajaj Auto Ltd. and Power Grid Corp Of India Ltd. were the top Nifty gainers.
On the other hand, BPCL Ltd., Tata Steel Ltd., Dr. Reddy's Laboratories, Hindalco Industries Ltd. and UPL Ltd. were the top laggards.
The broader indices underperformed their larger peers, with the mid-cap and small-cap gauges losing 0.53% and 0.32%, respectively.
Fifteen of the 20 sectoral indices compiled by BSE declined with S&P BSE Information & Technology, Telecommunication, Metal and Teck declining the most over 1%.
The market breadth is skewed in favour of the bears. About 1,604 stocks rose, 1892 fell and 136 stocks remained unchanged.
Dish TV India Appoints Three Independent Directors
Dish TV India Ltd. recorded the resignation of Executive Director Rajeev Kumar Dalmia from the Board of Directors of the company and the committee.
Subsequently, the board has appointed three independent directors of the company with effect from Dec. 6, 2022.
The appointment of Sunil Kumar Gupta, Madan Mohanlal Verma and Gaurav Gupta shall be placed before the shareholders for their approval in terms of extant provisions.
Source: Exchange Filings
Rupee Extends The Fall Against The U.S. Dollar
Vodafone Idea Approves Issuing Debentures Worth Rs 1,600 Crore To ATC Telecom
Vodafone Idea Ltd. shareholders have approved the issuance of shares worth Rs 1,600 crore to ATC Telecom Infrastructure Pvt. on a preferential basis, according to a regulatory filing.
This will enable Vodafone Idea Ltd. to clear their pending dues to ATC Telecom Infrastructure Pvt. by converting the amount into equity, if the amount remains unpaid in 18 months.
As many as 99.99% shareholders voted in favour of the "special resolution for issue of securities on a preferential basis" to ATC Telecom Infrastructure Pvt. at the Extraordinary General Meeting held on Nov. 21, 2022.
The stock was down 2.45%, as of 2:56 pm in trade on Tuesday. The trading volumes were two times the 30-day average.
Of the 21 analysts tracking the company, five suggest to 'hold' the stock and 16 recommend 'sell'. The return potential of the stock implies a downside of of 23.4% over the next 12 months.
Source: Bloomberg, Exchange Filings
European Markets Open Lower
Maruti Suzuki To Recall 9,125 Vehicles
Maruti Suzuki will recall 9,125 vehicles manufactured between November 2 and 28 on a suspected defect in a seat belt component.
Affected models are Ciaz, Brezza, Ertiga, XL6 and Grand Vitara.
Company to recall the suspected vehicles for inspection and replacement of the faulty part, free of cost.
Source: Exchange filing
SEBI Approves IPOs Of Concord Biotech, Manoj Vaibhav Gems
SEBI has approved the IPO plans of Ahmedabad-based Concord Biotech. The issue will be a pure offer-for-sale.
IPO plans of Manoj Vaibhav Gems n Jewellers have also been approved. The issue will be a combination of offer-for-sale and fresh issue of shares.
Source: SEBI
Midday Market Update
The Indian benchmark indices, S&P BSE Sensex and NSE Nifty 50 remained muted in trade after opening lower following the mixed global cues.
As of 12:18 pm, NSE Nifty 50 was trading 0.51% lower at 18,606.40 points and S&P BSE Sensex was down 0.52% at 62,510.60.
Among Nifty 50 stocks, 11 stocks and 39 stocks declined.
Adani Enterprises Ltd., Hindustan Unilever Ltd., Bajaj Finance Ltd., Britannia and Bajaj Auto Ltd. were the top gainers on Nifty 50. Whereas, Tata Steel Ltd., Hindalco Industries Ltd., JSW Steel Ltd., UPL Ltd., and Eicher Motors Ltd. were the top laggards.
The broader indices slipped in red, however they were still outperforming their larger peers, with the mid-cap losing 0.46% while small-cap down by 0.22% in trade.
Fifteen out of the 20 sectoral measures complied by BSE Ltd. declined, with S&P BSE Metal and S&P BSE Information Technology losing the most.
Source: Bloomberg, Exchanges
Westlife Rallies On Network Expansion Plan
MacDonald's parent company, Westlife Foodworld was up 7.7% in trade on Tuesday, as of 11:31 am. The scrip surged 10.22%, the most since Sept. 26, intraday.
The company was trading at 9.7 times its 30-day average.
About 90% of analysts have changed their price targets on the stock over the last one month. Of the 19 analysts tracking the company, 17 maintain 'buy' and two suggest to 'hold' the stock. The return potential of the stock implies an upside of 7.7% in the next 12 months.
As per a PTI report, Westlife Foodworld is looking for an almost three-fold jump in sales up to Rs 4,500 crore in the next five years by 2027 on the back of network expansion omnichannel approach.
The company plans to add 300 McDonald’s restaurants in the next five years, in which 60% of the new stores are likely to be in the southern region and the rest in the western zone, said the company in its "Vision 2027".
The store additions are will likely double the company sales to Rs 4000-4500 crore in the next 5 years, said Westlife Foodworld Executive Director Akshay Jatia.
The company, which through its subsidiary Hardcastle Restaurants operates 337 McDonald’s restaurants (as of Sept.30, 2022), has already commenced the work on the next 200 stores.
Source: Bloomberg, PTI
Sugar Stocks Gain On Low Output Report
Sugar stocks rose in trade on Tuesday after a Reuters report on the likely fall of India’s sweetener output triggered the rally.
India’s sugar output was likely to see a fall of 7% for the marketing year beginning October 1. This was after the country's largest cane producing state Maharashtra, is likely to witness a low cane yield of about 15%, as per the Reuters report.
As on 11:17 am, Shree Renuka Sugars Ltd. was up 3.61%, Avadh Sugar & Energy Ltd. was up 3.72%, Dalmia Bharat Sugar & Industries Ltd. up 2.46%, Andhra Sugar Ltd. up 0.87% and so on.
Source: Reuters, Exchanges
Bajaj Consumer Care Surges As Board Mulls A Proposal For Buyback
Bajaj Consumer Care rises after company announced that they are considering a proposal for buyback of fully paid-up equity shares of the company.
The Board of Directors meeting will be held on Dec 09.
The stock gained as much as 5.21%, the most since Nov 30. The total traded quantity is 27 times the 30-day average.
The relative strength index is 77, suggesting that it may be overbought.
Of the 12 analysts tracking the company, six maintains 'buy', four suggests 'hold' and two recommends 'sell'. The return potential of the stock implies a downside of 1.1% in the next 12 months
(Source: Bloomberg, Exchange Filings)
NSE Nifty IT Index Declines In Trade
As the benchmark indices traded lower on Tuesday morning, the NSE Nifty IT Index declined the most by 1.26%, as of 10:12 am.
Out of the 10 stocks comprising the index, none of the scrips advanced.
The newly listed LTIMindtree was trading the lowest, losing 2.15%, While Coforge, Mphasis, L&T Technology Services, HCL Tech and other I.T. constituents were also trading in red.
Source: Exchanges
Bank Of India Gains Most In Three Weeks
The shares of Bank of India were up 8.57% in trade on Tuesday, the scrip gained as much as 9.97%, the most since Nov. 9.
About 2.05 million shares of the company changed hands in two bunched trade, the stock was trading at 6.3 times its 30-day average.
Out of the three analysts tacking the stock, two maintained a 'buy' and one analyst recommended to 'sell' the stock.
Source: Bloomberg
Morgan Stanley Raises Price Target For Most PSU Banks
Morgan Stanley raised earnings estimates and valuation multiples for most public sector banks, barring State Bank of India, citing continued strong performance over the next few years supported by higher margins and sustained loan growth.
PSU Banks were the only sector trading in green during the early hours of trade on Tuesday. The NSE Nifty PSU Bank Index was up 1.61% in trade at 09:37 am.
Opening Bell
The Indian stock market benchmarks opened lower, mirroring their global equities peers, on Tuesday.
The S&P BSE Sensex opened lower by 439 points, down 0.70% 62,395.55 points. While, NSE Nifty 50 opened 100 points lower, down 0.54% at 18,600.65 points.
Out of the 50 stocks compiled by the Nifty 50 index, 11 stocks advanced and 39 stocks declined.
Hindalco Industries Ltd., Tata Steel Ltd., HCL Technologies Ltd., Infosys Ltd. and ONGC Ltd were the top Nifty 50 laggards. While SBI Life Insurance Co., IndusInd Bank Ltd., HDFC Life Insurance Co., Axis Bank Ltd. and SBI gained the most in the gauge at the opening bell.
The broader indices outperformed their larger peers, with the mid-cap and small-cap gauges losing 0.26% and 0.14%, respectively.
Eighteen of the 20 sectoral indices compiled by BSE declined with S&P BSE Information & Technology declining the most.
The market breadth is skewed in favour of the bulls. About 1,353 stocks rose, 916 fell and 142 stocks remained unchanged.
Rupee Depreciates Against The U.S. Dollar
The local currency, rupee declined against the U.S. dollar by 11 paise at opening.
It slipped further to 82.06 on Tuesday morning post open.
Source: Bloomberg
Pre-Market Analyst View
"According to SGX Nifty trend, benchmark indices are most likely to start out negative. Markets generally closed negative on a worldwide level. Investors are waiting for the conclusion of the RBI Monetary Policy Committee meeting before making any significant movements."Mohit Nigam, Fund Manager & Head, PMS, Hem Securities
"The Indian macros indicate steady improvement with buoyant tax collections, impressive credit growth and declining crude. Partly the market resilience in India comes from the retail optimism and DII investment. This is likely to continue despite the elevated valuations. Buy on dips strategy has worked well this year and investors can continue with the strategy."Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
Smaller Banks Not Seeing Very Large Institutional Flows | Trade Setup For Tuesday
Global Cues
U.S. Dollar Index at 105.28.
U.S. 10-year bond yield at 3.59% on Tuesday.
Brent crude down 3.3% to $82.68 per barrel.
Nymex crude at $77.43 per barrel.
SGX Nifty down 0.56% to 18,704.5 as of 8:15 a.m.
Bitcoin up 0.23% to $17,011.8..
Bulk Deals
Hindware Home Innovation: Al Mehwar Commercial Investments bought 7.72 lakh shares (1.07%) at Rs 380 apiece, Equity Intelligence India sold 6.65 lakh shares (0.9%) at Rs 380.2 apiece.
Karur Vysya Bank: Meridian Chem Bond sold 48.1 lakh shares (0.6%) at Rs 96.1 apiece.
New Delhi Television: Vikasa India EIF I Fund sold 4.59 lakh shares (0.71%) at Rs 394.1 apiece.
Rainbow Children’s Medicare: Abu Dhabi Investment Authority bought 9 lakh shares (0.89%) at Rs 741.3 apiece, Government of Singapore bought 21.1 lakh shares (2.08%) at Rs 735 apiece, ICICI Prudential Mutual Fund bought 17.7 lakh shares (1.74%) at Rs 735 apiece, India Acorn ICAV-Ashoka India Opportunities Fund bought 7.22 lakh shares (0.71%) at Rs 735 apiece, Stichting Depositary APG Emerging Markets Equity Pool bought 22.6 lakh shares (2.22%) at Rs 735 apiece, CDC Group sold 96.3 lakh shares (9.49%) at Rs 735.6 apiece, CDC India Opportunities sold 50.33 lakh shares (4.96%) at Rs 735 piece.
TVS Motor Company: Srinivasan Trust sold 25.7 lakh shares (0.54%) at Rs 1,020 apiece.
IRB Infrastructure Developers: The company and its private InvIT arm reported 39% increase in toll collection figures in November 2022 on year-on-year basis at Rs 365.9 crore.
Stocks To Watch
Adani Enterprises: The company closed its open offer to buy 26% stake in NDTV, set to become the company's biggest shareholder.
Bajaj Consumer Care: The board of the company will meet on Dec. 9 to consider and approve a proposed share buyback plan.
HDFC: Life Insurance Corporation of India has increased its stake in the company to 5% from 4.99%.
Natco Pharma: Delhi High Court ruled that the Natco chlorantraniliprole process does not infringe FMC Corporation's Indian patent and dismissed the appeal against the company.
Ahluwalia Contracts (India): The company secured an order for construction of public stadium with 5,000 seating capacity public auditorium at Guwahati for Rs 174.9 crore from Assam government.
JSW Energy: JSW Renew Energy Two Limited, a subsidiary of the company, started phase-wise commissioning of the 450 MW ISTS-connected Wind Power Project awarded under SECI Tranche X with the commissioning of the first phase of 27 MW at Tuticorin, Tamil Nadu.
Vedanta: The company clarified that it has received the Odisha government’s in-principle approval to provide hot metal to aluminium-dependent industries by inviting them to set up their plants in the vicinity of Vedanta’s primary aluminium plant at Jharsuguda.
Karur Vysya Bank: The bank raised lending rates by 25 basis points across tenors with effect from Dec. 7.
Kalpataru Power Transmission: The board of the company will meet on Dec. 8 to consider raising funds.
Dreamfolks Services: The company partnered with Vidsur Golf to offer customers access to premium golf courses across India and Asia Pacific.
SGX Nifty Indicates Lower Opening
Asian stocks followed the U.S. shares lower after unexpectedly strong services data bolstered the case for the Federal Reserve to deliver higher interest rates.
Asian markets were mostly down in early deals as South Korea's Kospi fell 0.47 %, China's Shanghai Composite moved 0.40% down and Hong Kong's Hang Seng index slipped 1.13%.
The U.S. markets on the other hand, fell by more than a 1.5%, on Monday. Dow Jones, S&P 500 and Nasdaq were down 1.40%, 1.79% and 1.93% respectively.
Oil fell 2.7% on weaker equity market conditions and sell-off ahead of the end of the year. Gold futures fell 1.6%, while Bitcoin fell 0.1% to trade around $17,100-level.
Foreign portfolio investors offloaded stocks worth Rs 1,139.1 crore, according to data from the NSE, on Monday. Domestic institutional investors turned net buyers and mopped up equities worth Rs 2,607.8 crore.
The Indian benchmark indices recouped most of their losses to end flat on Monday.
Rupee erased all its opening gains against the U.S. dollar on account of weak domestic markets and rise in crude prices. It depreciated 47 paise against the U.S. dollar to close lower at Rs 81.79 on Monday, compared to Friday’s close of 81.32.
At 8:15 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- fell 0.56% to 18,704.50.
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