KEY HIGHLIGHTS
Foreign Investors Remain Net Sellers
Overseas Investors in Indian equities started the week as net sellers, making it the sixth straight day of selling.
Foreign portfolio investors offloaded equities worth Rs 138.81 crore, according to data from the National Stock Exchange.
Domestic institutional investors remained net buyers and bought equities worth Rs 695.6 crore.
Institutions net bought Rs 3,694.91 crore worth of equities in December so far, and net sold Rs 11,756.98 crore worth of Indian equities till date in 2022.
10-Year Bond Yield Ends Flat
Yield on the 10-year bond ended flat to close at 7.29% on Monday.
Source: Bloomberg
Rupee Depreciates Against The U.S. Dollar
The local currency, rupee depreciated by 26 paise to 82.54 against the greenback on Monday.
The rupee closed at 82.28 on Friday.
Source: Bloomberg
Closing Bell
The Indian benchmark indices fell flat in trade after a volatile day on Monday.
The S&P BSE Sensex closed lower by 51 points or 0.08% at 62,130.57 points, while the NSE Nifty 50 ended 0.55 point higher at 18,497.15 points.
Out of the stocks compiled by the NSE Nifty 50 Index, 28 advanced while 22 declined.
BPCL Ltd., Divi's Laboratories Ltd., Coal India Ltd., UPL Ltd., and Nestle India Ltd. were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, Asian Paints Ltd., Infosys Ltd., Kotak Bank Ltd., Titan Co. and Eicher Motors Ltd. were the top laggards in the gauge.
The broader market indices; S&P BSE MidCap and S&P BSE SmallCap outperformed their larger peer by ended the day 0.30% and 0.36% higher, respectively.
Eleven out of the 20 sectoral indices complied by the BSE advanced while nine declined.
The market breadth was skewed in favour of the bulls. About 1,816 rose, 1,766 declined and 204 remained unchanged on the BSE.
Source: Bloomberg, Exchanges
GAIL India Surges After Large Trade
The shares of GAIL India Ltd., rose 2.20% on Monday, as of 3:14 pm after 2.89 million shares changed hand in a bunch trade.
It gained 2.37%, the most since Nov. 7. The stock was trading at 1.4 times its 30-day average volume.
Out of the 34 analysts tracking the company, 24 maintain a 'buy' rating, eight suggest 'hold' and two analysts recommend to 'sell' the stock.
Source: Bloomberg, Exchanges
Dalmia Bharat To Buy Jaiprakash Cement, Clinker And Power Plants
Dalmia Bharat to acquire clinker, cement and power plants from Jaiprakash Associates at an enterprise value of Rs 5,666 crore.
The transaction is subject to due diligence, approvals from lenders and JV partners of Jaiprakash Associates and regulatory authorities.
Dalmia Bharat says acquisition to help it become a pan-India cement company.
Source: Exchange filing
Macrotech Developers Closes Rs 3,547 Crore QIP Issue
The shares of Macrotech Developers rose 1.48%, as of 2:48 pm, on Monday after the company closed its QIP issue. It raised nearly Rs 3,547 crore through qualified institutional placement issue.
About 3.45 lakh equity shares of face value Rs 10 each were transffered to eligible qualified institutional buyers at an offer price of Rs 1,026 per share, aggregating to approx Rs 3,547 crore.
The company revealed the names of the qualified institutional buyers in an exchange filing, namely; New World Fund Inc, Stitching Depositary APG Emerging Markets Equity Pool, Kuwait Investment Authority FD 222, Kuwait Investment Authority Fund No. 202 and Nomura India Investment Fund Mother Fund.
(Source: Bloomberg, Exchanges)
Thomas Cook Owned Sterling Announces New Resort Opening At Tiruvannamalai
The shares of Thomas Cook (India) Ltd. rose 6.83% in trade as of 2:31 pm on Monday after its subsidiary Sterling Holiday Resorts, announced the launch of its property, Sterling Arunai Anantha Tiruvannamalai, in Tamil Nadu. It is their 8th resort in the state.
The stock gained as much as 11.30%, the most in nine months since March 9. The scrip was trading at 20.6 times its 30-day average volume. The relative strength index at 75 implies that the stock is overbought.
(Source: Bloomberg, Exchanges)
Escorts Kubota Names Harish Lalchandan As Chief Commercial Officer For Local Tractor Business
Escorts Kubota appointed Harish Lalchandan to the role of chief commercial officer for the domestic tractor business for agri machinery with effect from Dec. 12.
The stock was trading 0.69% lower at Rs 2,270.45 per share.
Source: Bloomberg, Exchange filing
Honeywell Shares As Nomura Views Margin Expansion
Shares of Honeywell Automation India Ltd. rose 4.66% as of 01:46 pm on Monday. The scrip gained as much as 5.44%, the most since Dec. 1.
Nomura expects recovery in Honeywell's services and exports to lift margins in the second half of the current fiscal.
The brokerage kept a 'buy' rating on the stock and raised the target price to Rs 50,642, implying an upside of about 22%.
The stock was trading at three times its 30-day average volume.
Out of the nine analysts tracking the company, four maintain a 'buy' rating, three suggest 'hold' and two analysts recommend to 'sell' the stock.
(Source: Bloomberg, Brokerage report)
European Markets Open Lower
Ahluwalia Contracts Surges After IDBI Initiates Coverage
The shares of Ahluwalia Contracts India Ltd. surged to 5.63% in trade as of 01:04 pm, on Monday. The stock gained as much as 6.90%, the most in five month, since July 12. The scrip trades at 1.4 times its 30-day average volume.
IDBI Capital initiated coverage on the stock with a 'buy' rating, offering a potential upside of 50%, with a target price of Rs 650.
Termed as a "cash flow machine" by the brokerage, Ahluwalia Contracts India Ltd. is expected to close the current fiscal with "highest ever" annual order inflow, which stands at Rs 40 crore year-to-date.
About 29% of analysts have changed their price targets on the stock over in the last one month. Out of the 10 analysts tracking the stock, nine maintain a 'buy' rating and one suggests 'hold'.
Oil And Gas Stocks Gain
Shares of top oil marketing companies traded higher on Monday as sharp correction in crude oil prices led analysts at Prabhudas Lilladher to upgrade Hindustan Petroleum Corp, Bharat Petroleum Corp. and Indian Oil Corp. to 'buy'.
The "sharp" drop in crude prices augurs well for the oil marketing companies, the brokerage said in its investor note.
The crude oil prices have corrected to $76/bbl, down about 40% from June-2022 highs of $125/bbl post Russia-Ukraine war due to rising global recessionary concerns amidst rising interest rates despite increasing Chinese demand post relaxation of pandemic lockdown and likely lower supplies from Russia, the brokerage said.
External Affairs Minister S Jaishankar Picks Key Concepts That Define The World Today
The impact of globalisation.
Rebalancing the world.
As rebalancing advances, multipolarity comes. The emergence of various power centres around the world.
The deeper globalisation gets, the more rebalancing and therefore more the emergence of multipolarity.
While the world changes, there are constant practices of international relations that remain at work.
Source: India Global Forum, UAE 2022
Macrotech Developers Approves QIP Issue Price At Rs 1,026/Share
Macrotech Developers said it will offer shares at a price of Rs 1,026 apiece for the qualified institutional placement.
The company approved the closure of the offer period for December 12.
Source: Exchange filing
Midday Market Update
The Indian benchmark indices opened lower, pared losses and turned volatile in a choppy session on Monday.
As of 12:11 pm, the S&P BSE Sensex was down by 49 points or 0.08% at 62,133.07 points, while the NSE Nifty 50 was down 10 points or 0.05% higher at 18,487.15 points.
Out of the stocks compiled by the NSE Nifty 50 Index, 29 advanced while 20 declined.
Divi's Laboratories Ltd., Coal India Ltd., IndusInd Bank Ltd., BPCL Ltd., and Nestle India Ltd. were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, the Asian Paints Ltd., Infosys Ltd., Eicher Motors Ltd., Cipla Ltd. and Sun Pharmaceuticals Ltd. were the top laggards in the gauge.
The broader market indices; S&P BSE MidCap and S&P BSE SmallCap were outperforming their larger peers by 0.08% and 0.19%, respectively.
Out of the 19 sectoral indices complied by the BSE, 10 advanced while nine declined.
The market breadth was skewed in favour of the bulls. About 1,804 rose, 1,638 declined and 210 remained unchanged on the BSE.
Source: Bloomberg, Exchanges
JPMorgan Upgrades PNB To 'Overweight' On Better Growth, Asset Quality
Shares of Punjab National Bank Ltd. rose after JPMorgan changed the bank's rating from "underweight," which it had had for a long time, to "overweight."
The stock was up 1.87% as of 11:54 am, on Monday. It gained 3.11%, the most since Dec. 8.
JPMorgan raised its target price to Rs 72 from Rs 34 on the stock, implying a potential upside of 28%. However, it said its 'buy' call is not a long-term call.
The brokerage said the upgrade comes as the company’s net slippages in Q2 have "gotten into negative territory and recovery momentum is outpacing new non-performing loan creation, plus there is minimal stress in corporate loans."
Out of the 19 analysts tracking the stock, seven maintained a 'buy' rating, six suggest a 'hold,' while six recommend to sell the stock.
Source: Bloomberg, Exchanges
Yes Bank Hits 52-Week High
The shares if Yes Bank Ltd., increased to Rs 21.05 as of 11:16 am on Friday, highest than any close since July 13, 2022. As per BSE, the stock hit a 52-week high at Rs 21.20.
The shares continues rallying from Friday as the bank had said that it will proceed with capital raises with The Carlyle Group and Advent International. Both investors are set to pick up 9.99% stake each in the bank.
The stock was trading at 6.2 times its 30-day average volume. The relative strength index at 89, suggests that the stock may be overbought.
The analyst consensus price target stood at Rs 14.13, which is 33.2% below the current price.
Out of the 14 analysts tracking the stock, one maintains a 'buy' rating, five suggest a 'hold,' while eight recommend to sell the stock.
Source: Bloomberg, Exchanges
KPI Green Energy Adds New Solar Power Projects
KPI Green Energy Ltd. announces that it is developing solar power projects worth 24.90 MWp capacity under the captive power producer (CPP) segment through its subsidiaries.
The shares of KPI Green Energy Ltd. rose 1.60%, as of 11:01 am on Monday. It gained 2.34%, the most since December 1.
Upon commissioning of the new orders, the solar power projects under all segments of the company will stand at a total cumulative capacity of 63.66 MWp.
Sourcee: Bloomberg, Exchanges
Hindustan Oil Exploration Gains After Resuming Oil Production At D-1 Well
Hindustan Oil Exploration Co. resumed oil production from D-1 well in its B-80 field, located in western offshore, after arresting a leak in the SCSSV control line.
The shares of the company rose to 3.16%, as of 10:22 am on Monday after the oil production update. The stock gained 4.85%, the most in five weeks since Nov. 4.
The scrip trades at 3.1 times its 30-day average volume.
The one analyst tracking the stock, maintained a 'buy' rating.
Source: Bloomberg, Exchanges
VA Tech Wabag Surges To 52-Week High After Order Win
VA Tech Wabag Ltd.'s shares clocked a 52-week high after it won a repeat order worth Rs 260 crore from Purolite S.R.L., Romania.
The stock surged as much as 12.21% intraday- the most since June. 17, to Rs 374.9 per share. As of 10:14 a.m., it was trading 10.45% higher at Rs 369.
Total traded quantity stood at 17.4 times the 30-day average.
The Chennai-based water technology firm received a repeat order to upgrade Purolite S.R.L's industrial wastewater treatment plant in Romania, according to a stock exchange filing.
The contract is on engineering and procurement basis and includes design and engineering, equipment supply, installation, commissioning and start-up of the Purolite Victoria wastewater treatment plant.
The project will be executed over 24 months. The upgrade will include additional pre-treatment, extension of existing lamella clarifiers and new reverse osmosis stage.
Source: Bloomberg, Exchange filing
Uniparts India Debuts At 0.35% Discount To IPO Price
Shares of Uniparts India listed at Rs 575 per share on the BSE and NSE, a discount of 0.35% to its IPO price of Rs 577.
Its IPO was subscribed 25.62 times.
Source: BSE, NSE
Poonawalla Fincorp Mulls Fundraise, Stake Sale
Shares of Poonawalla Fincorp Ltd. rose on Monday after the company said it will meet on Dec. 14 to consider proposal for raising funds or sell stake in unit.
The stock gained as much as 2.24%. Total traded quantity stood at 2.5 times the 30-day average.
Of the 10 analysts tracking the company, seven maintain 'buy', two suggest 'hold' and one recommends 'sell'. The return potential of the stock is 23.1%.
The board will meet to consider, evaluate and decide on the way forward for certain proposals for raising of funds or sale of controlling stake in its unit Poonawalla Housing Finance Ltd.
Source: Bloomberg, Exchange filing
PSP Projects Surges After Large Trade
The shares of PSP Projects Ltd. rose 2.14% in trade on Monday, as of 9:56 am, as one million shares changed hands on NSE.
The scrip trades at 37.1 times its 30-day average volume.
Out of the 11 analysts tracking the stock, all of them maintained a 'buy' rating. The return potential of the scrip indicated an upside potential of 1.4% over the next 12 months from its current price.
Source: Bloomberg
Direct Tax Collection At Rs 8.77 Lakh Crore As Of Nov. 30
Direct tax collection, net of refund, stands at Rs 8.77 lakh crore.
Collection is 24.26% higher than the corresponding period of the preceding year.
61.8% of Budget estimates for FY23 tax revenue already achieved, says Finance Ministry.
Source: Finance Ministry Twitter
Glenmark Pharma Falls On USFDA Alert
After Glenmark Pharmaceuticals Ltd. was pulled up by the US FDA over manufacturing lapses at its Goa-based manufacturing plant, the shares of the company fell 3.07%, as of 9:43 am.
During the opening, the stock fell 4.99%, the most since Nov. 24. The scrip trades at 4.2 times its 30-day average volume.
About 48% of analysts have changed their price targets on the stock over the past one month. Of the 19 analysts tracking the stock, 12 have maintained a 'buy' rating on the stock, six suggested 'hold' and one is of the view to 'sell' the stock.
Source: Exchanges, Bloomberg
Jaiprakash Power Ventures Gains On Unit Divestment Meeting
Shares of Jaiprakash Power Ventures Ltd. surged after the company agreed to meet on Monday to consider the proposal for divesting Jaypee Nigrie Cement Grinding unit.
The stock soared as much as 8% to trade at Rs 8.1. Total traded volume stood at 11.4 times the 30-day average.
The meeting of the board of directors was convened on Monday on a short notice to inform the board of the recommendations of the audit committee to consider the proposal of divestment of Jaypee Nigrie Cement Grinding Unit.
Source: Bloomberg, Exchange filing
Opening Bell
Aided by weak global cues, the Indian benchmarks opened lower on Monday.
The S&P BSE Sensex was down by 411 points or 0.66% at 61,770.56 points, while the NSE Nifty 50 opened 95 points or 0.51% lower at 18,402.15 points.
Out of the stocks compiled by the NSE Nifty 50 Index, seven advanced while 43 declined.
IT stocks dragged the benchmark with Infosys Ltd., TCS Ltd., HCL Technologies Ltd. and Wipro Ltd., falling more than a percent.
While, Coal India Ltd., Mahindra and Mahindra Ltd., Britannia Ltd. and Tata Consumer Ltd. were the top gainers in the gauge.
The broader market indices; S&P BSE MidCap and S&P BSE SmallCap mirrored their larger peers by 0.53% and 0.37%, respectively.
Out of the 20 sectoral indices complied by the BSE, 18 declined while only S&P BSE Fast Moving Consumer Goods advanced.
The market breadth was skewed in favour of the bears. About 1,105 rose, 1,636 declined and 152 remained unchanged on the BSE.
Source: Bloomberg, Exchanges
Hindustan Oil Exploration Resumes Oil Production In Western Offshore
Hindustan Oil Exploration Co. resumed oil production from D-1 well in its B-80 field, located in western offshore, after arresting a leak in the SCSSV control line.
Currently, the flow rate of oil and gas of both D1 and D2 wells are lesser than the capacity of the wells.
Production is restricted due to capacity limitation of the test separator through which the fluids pass. Once the high-pressure separator is online, the production from the wells will be ramped up to its intended capacity.
Source: Exchanges
VA Tech Wabag Wins Repeat Water Treatment Order In Romaia
VA Tech Wabag received a repeat order to upgrade Purolite S.R.L's industrial wastewater treatment plant in Romania worth €30 million (approx. Rs 260 crore).
The contract includes design and engineering, equipment supply, installation, commissioning and start-up of the Purolite Victoria wastewater treatment plant.
The project will be executed over 24 months.
The upgrade will include additional pre-treatment, extension of existing lamella clarifiers and new reverse osmosis stage.
Source: Exchange filing
10-Year Bond Yield Rises
Yield on the 10-year bond rose 3 bps to 7.32% in early trade.
Source: Bloomberg
Rupee Depreciates Against U.S. Dollar
Indian currency depreciated by 25 paise to 82.52 at the open against the greenback on Monday. It closed at 82.27 on Friday.
Source: Bloomberg
MTAR Inks Pact With IN-SPACe For Satellite Launch Vehicle
MTAR signs agreement with IN-SPACe for a satellite launch vehicle.
MTAR Technologies has signed an MoU with IN-SPACe India for the design and development of a small satellite launch vehicle.
The MoU will remain in force for three years.
Source: Exchange filing
Global Cues
U.S. Dollar Index at 105.14.
U.S. 10-year bond yield at 3.59%, as of Friday.
Brent crude up 1.24% to $77.04 per barrel.
Nymex crude at $72.07 per barrel.
SGX Nifty down 0.36% to 18,523.5 as of 8:10 a.m.
Bitcoin down 1.06% to $16,934.
Pledge Share Details
Chambal Fertilisers & Chemicals: Promoter Zuari Industries revoked and created a pledge of 9.5 lakh shares on Dec. 7.
IIFL Wealth Management: Promoter Group Shilpa Bhagat revoked a pledge of 11.25 lakh shares on Dec. 8.
Bulk Deals
Vakrangee: Ravi Omprakash Agrawal sold 1.76 crore shares (1.66%) at Rs 27.1 apiece.
Aditya Vision: Sunita Sinha sold 2.1 lakh shares (1.75%) at Rs 1,465.95 apiece, Himalaya Finance & Investment Co. bought 1 lakh shares (0.83%) at Rs 1,466 apiece, Ashish Rameshchandra Kacholia bought 1 lakh shares (0.83%) at Rs 1,465.90 apiece.
In Focus: Uniparts India Listing
Uniparts India: Equity shares of the company will be listed on the exchanges on Dec. 12. The issue price for the IPO, which closed on Dec. 2, was Rs 577. The IPO was subscribed 25.32 times, with institutional buyers placing bids for 67.14 times their basket, and HNIs oversubscribing their portion 17.86 times. The retail portion was subscribed 4.63 times.
Offerings
Sula Vineyards: The company's IPO will open for subscription on Dec. 12 and continue till Dec. 14. The price band for the Rs 960 crore issue has been pegged at Rs 340-357 per share. The company has already raised Rs 288 crore from anchor investors.
Also Read: Sula Vineyards IPO: All You Need To Know
Abans Holdings: The financial services arm of Abans Group will open for the public on Dec. 12 and conclude on Dec. 15. The price band for the issue has been set at Rs 256-270. The IPO includes fresh issue of 38 lakh shares and offer for sale of 90 lakh shares.
Also Read: Landmark Cars IPO To Open On Dec. 13
Stocks To Watch
Kalpataru Power Transmission: The company raised Rs 99 crore via allotment of non-convertible debentures on a private placement basis.
PSP Projects: The company received a letter of intent from Nila Spaces for a project worth Rs 121.51 crore to construct high-rise residential towers.
Emami: The company increased its shareholding in subsidiary Brillare Science from 77.53% to 80.59%.
Bank of Baroda: The bank hike MCLR rates in the range of 25-30 basis points across tenors, with effect from Dec. 12.
IDFC: The scheme of amalgamation for the merger of wholly owned subsidiary companies IDFC Alternatives, IDFC Trustee Co., IDFC Projects with IDFC became operative from Dec. 9.
Bharti Airtel: Board approves the allotment of 11.88 lakh shares at conversion price of Rs 521 per share to 'foreign currency convertible bond' holders. The principle value of the FCCBs up for conversion stands at $8.6 mn (approx. Rs 70.90 crore).
Himatsingka Seide: Board will meet on Dec. 15 to consider fund raising up to Rs 108 crore. They will also consider an issue of non-convertible debentures up to Rs 500 crore, to identified investors.
NTPC: Commences commercial operations of first part capacity of 162.27 MW out of 230 MW Ettayapuram Solar PV Project.
JPPower: Meeting of Board of Directors has been convened on Monday, Dec. 12, at a short notice to apprise the audit committee to consider the proposal of divestment of Jaypee Nigrie Cement Grinding Unit.
Zydus Lifesciences: Receives two final approvals from the U.S. FDA for Silodosin capsules and Pregabalin capsules. The drugs will be manufactured at the group’s formulation manufacturing facility at Moraiya, Ahmedabad, India.
SGX Nifty Hints At Lower Opening
Asia's stocks went down at the start of a big week for the markets, when the U.S. Federal Reserve, the European Central Bank, and a number of other central banks would decide on their interest rates.
The dollar edged higher and made gains against the yen, the euro and the offshore yuan in early trading. Shares fell in Japan, South Korea, Australia and Hong Kong.
The Japanese Nikkei 225 was down 0.24%, the Australian ASX was down 0.59% and Hang Seng was down 1.07%.
Brent crude continued to trade at sub-$80 levels at around $77 per barrel, while Nymex crude fell to $72.07 per barrel.
The Indian benchmark indices ended down after a volatile day, snapping a two-week gaining streak on Friday.
Overseas Investors in Indian equities remained net sellers for the fifth day in a row on Friday. Foreign portfolio investors offloaded equities worth Rs 158 crore, according to data from the National Stock Exchange. Domestic institutional investors remained net buyers and bought equities worth Rs 501.6 crore.
Rupee closed 0.19% higher against the U.S. dollar at 82.27 on Friday, compared to Thursday’s close of 82.43.
At 8:10 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- fell 0.36% to 18,523.5. ADRs indicated a gap down start for IT major such as Infosys Ltd. and Wipro Ltd.
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