Share Market Today: Sensex, Nifty Close Lower, Tech Stocks Drag; FPIs Stay Net Sellers

Overseas Investors in Indian equities ended the week as net sellers, making it the fifth straight day of selling.

Foreign portfolio investors offloaded equities worth Rs 158.01 crore, according to data from the National Stock Exchange.

Domestic institutional investors remained net buyers and bought equities worth Rs 501.63 crore.

Institutions net bought Rs 3,138.12 crore worth of equities in December so far, and net sold Rs 12,313.77 crore worth of Indian equities till date in 2022.

Yield on the 10-year bond ended flat to close at 7.30% on Friday.

Source: Bloomberg

The Indian rupee appreciated by 15 paise to close at 82.28 against the U.S. Dollar on Friday.

The local currency had closed at 82.43 on Thursday.

The Indian benchmark indices fell in trade after a volatile day and snapped their two-week gaining streak

The S&P BSE Sensex closed lower by 389 points or 0.62% at 62,181.67 points, while the NSE Nifty 50 ended 113 points or 0.61% lower at 18,496.60 points.

Out of the stocks compiled by the NSE Nifty 50 Index, 17 advanced while 33 declined.

Nestle India Ltd., Sun Pharma Ltd., ITC Ltd., Dr Reddy's Ltd., and Titan Co. were the top gainers amongst the NSE Nifty 50 constituents.

Whereas, the IT stocks, such as HCL Tech Ltd., Tech Mahindra Ltd., Infosys Ltd., Wipro Ltd., and TCS Ltd. were the top laggards in the gauge.

The broader market indices; S&P BSE MidCap and S&P BSE SmallCap were down 0.45% and 1%, respectively.

Sixteen out of the 20 sectoral indices complied by the BSE declined while only four declined.

The market breadth was skewed in favour of the bears. About 1,234 rose, 2,290 declined and 117 remained unchanged on the BSE.

Yes Bank, Patym, New India Assurance and Kalpatru were among the top gainers in the S&P BSE 500 gauge.

While, Vakrangee, HCL Technologies, Bank of India, Indiabulls Real Estate and Ircon International were the top losers.

Vakrangee, Yes Bank, Century Ply, V-Guard and Cummins India were the most active by volume in today's trade.

Source: Exchanges

• V-Guard Industries to buy 100% stake in kitchen appliances maker Sunflame.

• The transaction will be funded through a mix of debt and internal accruals.

• The deal is expected to close by mid of January 2023.

• Acquisition in line with the company's strategy to strengthen its presence in domestic kitchen appliances segment.

Source: Exchange filing

The NSE Nifty PSU Bank Index was down 2.12% in trade as of 3:06 pm, on Friday. The scrip declined by 3.65%, the most in 10 weeks since Sept. 26.

Seven of the 12 NSE Nifty PSU Banks constituents decline in trade, with the following stocks dragging the index lower; Indian Bank falling the most at 7.17%, Union Bank down 5.31%, Bank of Maharashtra down 4.99% and so on.

The NSE Nifty IT Index was trading 3.04% lower as of 3:01 p.m. on Friday. The index decline by 3.57% in the early hours of trade today, the most since Sept.16, dragged by HCL Technologies, which slumped 6.93%.

TCS traded 1.91% lower, while Infosys was down 2.97%. Wipro declined 2.54%.

• Marico’s unit has acquired 100% of Beauty X Joint Stock Company for Rs 172 crore.

• The firm owns personal care brands such as ‘Purité de Prôvence’ and ‘Ôliv’ in Vietnam.

• Deal is expected to be completed by March 31, 2023, subject to approvals.

• The shares of Marico Ltd. rose 1.62% in trade as of 2:20pm on Friday. The scrip gained as much as 3.04%, the most since Nov. 29.

• The stock was trading at two times its 30-day average volumes.

• Of the 44 analysts tracking the stock, 27 have maintained a 'buy' rating on the stock, 13 analysts have recommended a 'hold,' while four suggest to 'sell' the stock.

Source: Exchange filing

– State Bank of India will consider raising funds via issuance of AT-1 bonds on December 14.

– Issuance to be done via a public offer or private placement to investors up to 31st March, 2024.

Source: Exchange filing

Jindal Steel and Power said it is acquiring assets of Monnet Power Company and not its shares.

The purchase is in a slump sale manner of assets only.:

Source: Exchange filing

• Hero MotoCorp’s Malo Le Masson has resigned to pursue opportunities outside of the company.

• CFO Niranjan Gupta, has been given the additional charge of heading strategy and M&A for the company.

• Vikram Kasbekar, executive director, has been given the responsibility to head Global Product Planning as an interim charge.

Source: Exchange filing

Indian mutual funds see inflow of Rs 13,263.56 cr in November vs Rs 14,046.98 crore inflow in October.

• Equity mutual funds see inflow of Rs 2,258.35 cr in November vs Rs 9,390.35 cr inflow in October.

• Debt mutual funds see inflow of Rs 3,668.59 cr in November vs Rs 2,817.79 cr outflow in October.

• Hybrid mutual funds see outflow of Rs 6,477.33 cr in November vs Rs 2819.39 cr outflow in October.

  Source: AMFI

Equity Mutual Funds

• Multi-cap funds: Inflow of Rs 170.49 crore vs inflow of Rs 889.26 in October.

• Large-cap funds: Outflow of Rs 1,038.84 crore vs inflow of Rs 173.62 crore in October.

• Mid-cap funds: Inflow of Rs 1,176.31 crore vs inflow of Rs 1,385.33 crore in October.

• Small-cap funds: Inflow of Rs 1,378.24 crore vs inflow of Rs 1,581.91 crore in October.

• SIP contribution grows to Rs 13,306.49 crore in November vs Rs 13,040.64 crore in October.

  Source: AMFI

The Indian benchmark indices slipped in trade after opening on positive note on Friday.

As of 12:26 pm, the S&P BSE Sensex was down by 201 points or 0.32% at 62,368.98 points, while the NSE Nifty 50 was down 54 points or 0.29% higher at 18,555.25 points.

Out of the stocks compiled by the NSE Nifty 50 Index, 29 advanced while 20 declined.

Sun Pharma Ltd., IndusInd Bank Ltd., Nestle India Ltd., Titan Co., and Adani Ports and SEZ Ltd. were the top gainers amongst the NSE Nifty 50 constituents.

Whereas, the IT stocks, such as HCL Tech Ltd., Tech Mahindra Ltd., Infosys Ltd., Wipro Ltd., and TCS Ltd. were the top laggards in the gauge.

The broader market indices; S&P BSE MidCap and S&P BSE SmallCap declines lesser thattheir larger peers dow 0.06% and 0.21%, respectively.

Out of the 20 sectoral indices complied by the BSE, 10 advanced while nine declines.

The market breadth was skewed in favour of the bears. About 1,471 rose, 1,906 declined and 154 remained unchanged on the BSE.

Vedanta has approved the issuance of NCDs up to Rs 800 crore.

Sale will have base issue size of Rs 500 crore and green shoe option of Rs 300 crore.

Source: Exchange filing

L&T will acquire a minority stake in U.S.-based tech firm Opro.AI for $1 million (about Rs 8.2 crore).

Opro.AI builds deep learning optimization software for process industries such as chemicals and oil and gas to help achieve higher yields and reduced emissions.

The shares of Larsen & Toubro Ltd. rose 1.05% in trade as of 12:14 on Friday.

Of the 43 analysts tracking the stock, 42 have maintained a 'buy' rating on the stock, and one analyst if of the view to 'sell' the stock.

Source: Bloomberg, Exchange filing

Bajaj Consumer has approved a plan to buy back 33.7 lakh shares at a price of up to Rs 240 each.

The proposal is for an aggregate amount of up to Rs 80.89 crore.

The shares of Bajaj Consumer Ltd. rose 2.44% in trade as of 12:09 on Friday. The scrip was trading at 3.9 times its 30-day average volume.

About 35% of analysts have changed their price targets on the stock over the past one month. Of the 12 analysts tracking the stock, six have maintained a 'buy' rating on the stock, four suggested 'hold' and two are of the view to 'sell' the stock.

Source: Bloomberg, Exchange filing

• Yes Bank to proceed with completion of investment proposals with Carlyle and Advent International.

• RBI has sent fresh letters regarding the investment proposals to Yes Bank.

• The bank shall now engage both investors for completion of the proposed capital raise.

• Capital raise shall be subject to various regulatory compliances and conditions precedent in investor agreements.

• Alert: On Nov 30, RBI had issued conditional approvals to Carlyle and Advent International to acquire 9.99% stake each in Yes Bank.

Source: Exchange notice

• Snapdeal has withdrawn its IPO plans citing “prevailing market conditions.”

• It added it may reconsider an IPO in the future depending on its need for growth capital and market conditions.

• It had filed papers for a Rs 1,250-crore offer last year in December.

Source: Company spokesperson

• Metropolis Healthcare has named Surendran Chemmenkotil as Chief Executive Officer starting January 2, 2023.

• Chemmenkotil was managing director and CEO for Airtel Networks, Nigeria and served as CEO for several circles in India as well.

• Previous CEO Vijender Singh had resigned in August this year.

Source: Exchange filing

The shares of Yes Bank shares jumped as much as 12.11% as of 10:36 am on Friday, after 0.6% equity changes hands in 80 bunches.

The scrip gained as much as 14.93%, the most since Aug. 2, 2022. The stock traded at 15.9 times its 30-day average volume. The relative strength index at 86 implies that the stock is overbought.

Of the 14 analysts tracking the stock, only one has maintained a 'buy' rating on the stock, five suggest 'hold' and eight are of the view to 'sell' the stock.

Source: Bloomberg, Exchanges

Shares of One 97 Communications Ltd. surged with the operator of India’s largest digital payments provider set to explore a buyback.

One97 Communications, on Thursday, said its board is scheduled to meet on Dec. 13 to consider the proposal to repurchase fully paid-up equity shares.

The stock climbed as much as 4.27%, as of 9:57 am on Friday.

Source: Bloomberg, Exchanges

The shares of HCL Tech fell by 1.34% in trade as of 9:36 am on Friday after the management indicated that the growth for FY23 will come at the lower end of the range that it had indicated post its June-September quarter results due to higher-than-expected furloughs, according to Nirmal Bang.

The scrip was trading at 9.1 times its 30-day average volume.

Of the 47 analysts tracking the stock, 32 have maintained a 'buy' rating on the stock, 12 suggested 'hold' and three are of the view to 'sell' the stock.

Source: Bloomberg

Aided by positive global cues, the Indian benchmarks opened higher on Friday.

The S&P BSE Sensex was up by 120 points or 0.19% at 62,690.86 points, while the NSE Nifty 50 opened 53 points or 0.29% higher at 18,662.40 points.

Out of the stocks compiled by the NSE Nifty 50 Index, 42 advanced while eight declined.

Tata Steel Ltd., IndusInd Bank Ltd., Hindustan Unilever Ltd., Grasim Ltd., and Eicher Motors Ltd. were the top gainers amongst the NSE Nifty 50 constituents.

Whereas, HCL Tech Ltd., Apollo Hospitals Enterprise Ltd., ONGC Ltd., Tech Mahindra Ltd. and Axis Bank Ltd. were the top laggards in the gauge.

The broader market indices; S&P BSE MidCap and S&P BSE SmallCap outperformed their larger peers by 0.55% and 0.48%, respectively.

Out of the 20 sectoral indices complied by the BSE, 18 advanced while only S&P BSE Information Technology and S&P BSE Teck declined.

The market breadth was skewed in favour of the bull. About 1,897 rose, 802 declined and 113 remained unchanged on the BSE.

• Passenger vehicles sales rise 21.3% to 3.01 lakh units Vs 2.48 lakh.

• Two-wheeler sales rise 23.6% to 18.48 lakh units Vs 14.95 lakh.

• Commercial vehicle sales jump 32.8% to 79,369 units Vs 59,765.

• Sales of three-wheelers rise 80.34% to 74,473 units Vs 41,296.

• Tractor sales rise 56.8% to 77,993 units Vs 49,737.

Source: FADA

Yield on the 10-year bond opened largely flat at 7.30% in early trade. It closed at 7.29% on Thursday.

Source: Bloomberg

Indian currency appreciated by 11 paise to 82.31 at the open against the greenback on Friday. It closed at 82.43 on Thursday.

Source: Bloomberg

• Pfaudler GmbH, a subsidiary of GMM Pfaudler will fully acquire industrial agitator manufacturer Mixel France for approximately Rs 60.92 crore (7 million euros).

• Transaction will be funded through a mix of internal accruals and debt.

• Deal is expected to close in February 2023.

• Company says acquisition is in line with GMM Pfaudler’s growth and diversification strategy, enhancing product mix and technology.

Source: BSE

• U.S. Dollar Index at 104.77

• U.S. 10-year bond yield rose to 3.48% on Thursday

• Brent crude down 1.32% to $76.15 per barrel

• Nymex crude at $72.03 per barrel

• SGX Nifty up 0.36% to 18,808 as of 8:10 a.m.

• Bitcoin up 0.15% to $17,209.45

• Triveni Engineering: Goel Anil Kumar bought 18 lakh shares (0.75%), Societe Generale bought 14.73 lakh shares (0.61%), Plutus Wealth Management bought 40 lakh shares (1.65%) at Rs 280 apiece, Dhruv Manmohan Sawhney sold 1.7 crore shares (7.03%) at Rs 280.75 apiece.

• One 97 Communications: The board will meet on Dec. 13 to consider a proposed share buyback programme.

• Adani Enterprises: The company acquired 100% stake in Alluvial Mineral Resources from Adani Infra (India).

• Sun Pharmaceuticals: The U.S. FDA has listed the company’s Halol manufacturing facility under ‘Import Alert’. The company has not revised the revenue guidance for the current fiscal.

• Ahluwalia Contracts (India): The company has clarified inter alia that the Rs 55.4-crore contract at Plaksha University, Punjab is a domestic project and will be executed within 15 months.

• Hindustan Unilever: The company will acquire 100% stake in Zywie Ventures in a cash deal, to be completed in two tranches. The company will also acquire 19.8% stake in Nutritionalab for Rs 70 crore.

• Lupin: The company appointed Spiro Gavaris as the president of its U.S. Generics business.

• Max Financial Services: The company completed the acquisition of balance 5.17% stake held by Mitsui Sumitomo Insurance Co., Japan in subsidiary Max Life Insurance Co., taking its overall shareholding to 87%.

• HCL Tech: Management has indicated that growth for FY23 will come at the lower end of the range that it had indicated post its Q2FY23 results due to higher-than-expected furloughs, according to Nirmal Bang.

Asian markets opened on a positive note on Friday morning, with the Japanese, Hong Kong and Australian stocks trading higher. The Nikkei gained 1.21%, Hang Seng was up 1.22%, whereas S&P/ASX 200 rose 0.24%.

U.S. stocks were upbeat on data indicating moderation in the labour market, paving the way for less hawkish Federal Reserve. The S&P 500 rose 0.7%, while the tech-heavy Nasdaq 100 was up 1%. The yield of 10-year Treasury advanced five basis points to 3.44%.

Oil was up 0.8% after paring significant gains from a volatile session caused due to shutdown of a crucial pipeline between the U.S. and Canada. Gold futures rose 0.2%, whereas Bitcoin rose 0.7% to trade around $17,000-level.

The Indian benchmark indices opened on a marginally positive note and stayed flat through the session before closing higher on Thursday on the back of a last hour surge.

Overseas Investors in Indian equities remained net sellers for the fourth straight day on Thursday. Foreign portfolio investors offloaded equities worth Rs 1,131.67 crore, according to data from the National Stock Exchange. Domestic institutional investors turned net buyers and bought equities worth Rs 772.29 crore.

The rupee maintained its upward trajectory against the U.S. dollar for the second day after paring initial losses. The Indian currency appreciated by four paise to close at 82.43 against the U.S. Dollar on Thursday.

At 8:10 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- rose 0.43% to 18,808.