Stock Market Today: Nifty Logs Biggest One-Day Fall In 10 Months; FPIs Stay Net Sellers

Overseas investors remained net sellers of Indian equities for the third consecutive session on Wednesday.

Foreign portfolio investors offloaded stocks worth Rs 1,322.08 crore, according to provisional data from the National Stock Exchange.

Domestic institutional investors remained net buyers, and mopped up stocks worth Rs 4,754.34 crore, the NSE data showed.

Foreign institutions have been net buyers of Rs 1,61,589 crore worth of Indian equities so far in 2023, according to data from the National Securities Depository Ltd., updated till the previous trading day.

The yield on the 10-year bond closed flat at 7.17% on Wednesday.

Source: Bloomberg

The local currency closed flat at 83.18 against the U.S dollar on Wednesday.

Source: Bloomberg

Indian stocks benchmark Nifty 50 dropped the most in 10 months to retreat from all-time highs as investors booked profits, halting its record-setting burst. The Sensex fell the most since October 26.

The Nifty 50 ended 302.95 points or 1.41% lower at 21,150.15 and the Sensex ended 930.88 points or 1.3% lower at 70,506.31. Intraday, the Nifty hit a low of 21,087.35 and the Sensex fell to 70,302.60.

The declines were broad-based with all sectoral indices ending lower, with Nifty Media witnessing the worst fall.

Indian stocks latest record-setting burst was fuelled by state election results and U.S. Federal Reserve rate cut pivot signal. The exuberance had prompted analysts to predict a pullback. Fresh COVID fears after India reported 21 cases of the new coronavirus variant JN.1 from across the country added to the negative sentiment.

"The domestic market saw a sharp and abrupt sell-off in the second half, despite the positive trend in global peers, " Vinod Nair, head of research at Geojit Financial Services said.

"This is attributable to profit booking from the recent sharp rally stretching valuations of mid- and small-cap stocks. The recent uptick in crude prices prompted investors to book profits," he added.

Going ahead, Shrikant Chouhan, head of equity research at Kotak Securities said, "We are of the view that, as long as the index is trading below 21225/70800 the weak sentiment is likely to continue. Below the same, the market could retest the level of 21000-20930/70300-70000."

Only three stocks in the Nifty 50 ended higher. Reliance Industries Ltd., Larsen & Toubro Ltd., Infosys Ltd., State Bank of India, ICICI Bank Ltd., Hero MotoCorp Ltd., Cipla Ltd led to the fall in the Nifty.

Oil and Natural Gas Corp, and Tata Consumer Products Ltd., and Britannia Industries Ltd.  supported the benchmark indices.

All sectoral indices fell with Nifty Media and Nifty Metal falling the most. Nifty FMCG fell the least.

The broader indices underperformed the benchmark indices. The S&P BSE MidCap fell 3.12%, and BSE SmallCap declined 3.42%. All 20 sectors, compiled by the BSE declined. BSE Telecommunication and IT sector fell the most among sectoral indices.

The market breadth was skewed in the favour of the sellers. Around 3,175 stocks declined, 661 stocks rose, and 85 remained unchanged on BSE.

Gets demand order of Rs 5.62 cr including tax liability, interest, penalty from Mumbai GST Authority

Gets demand order of Rs 53.6 lk including tax liability, interest, penalty from Jaipur GST Authority

Source: Exchange Filing

• US FDA inspected Unit IV of arm APL Health from Sept 13 to Sept 19

• Unit gets Establishment Inspection Report classifying it as 'Voluntary Action Indicated'

Source: Exchange Filing

Nazara Technologies shares rose on Wednesday as the company said it is in partnership with with four Indian game studios to publish five games.

Nazara Technologies shares rose as much as 4.90% to 918 apiece, it last traded at these levels on Sep. 8, 2023. It pared gains to trade 4.20% higher at Rs 912 apiece, as of 1:07 p.m. This compares to a 0.072% advance in the NSE Nifty 50 Index.

It has risen 58.06% on a year-to-date basis. Total traded volume so far in the day stood at 2.8 times its 30-day average. The relative strength index was at 73.

Out of 12 analysts tracking the company, 5 maintain a 'buy' rating, 6 recommend a 'hold,' and 1 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 55.2%.

• 10.4 lakh shares changed hands in a large trade

• 0.02% equity changed hands at Rs 62 apiece

• Buyers and sellers not known immediately

Source: Bloomberg

Shares of IIFL Finance and Piramal Ltd fell after RBI banned Banks and NBFCs from investing in Alternative Investment Funds that have invested in debtor firms where the lender had exposure in the prior 12 months.

Consequently, Banks and NBFCs will have to liquidate investments in 30 days.

Shares of IIFL Finance fell as much as 3.3% and those of Piramal Enterprises fell over 5%. Brokerage firm Jefferies in a report said Piramal Enterprises have Rs 45 billion of investments in AIF while IIFL Finance has Rs 11 billion.

Jefferies has a price target of Rs 855 for Piramal. It said key upside risks include better-than-expected loan growth led by stronger ramp-up in retail loans, better recoveries, and better-than-expected asset quality.

Piramal Enterprises shares fell as much as 5.14% to 912.25 apiece, it last traded around this level around Dec 13, 2023. It was trading 4.54% lower at Rs 918 apiece, as of 12.34 p.m. This compares to a 0.45% advance in the NSE Nifty 50 Index.

It has risen 10.76% on a year-to-date basis. Total traded volume so far in the day stood at 5.2 times its 30-day average. The relative strength index was at 43.8.

Out of 10 analysts tracking the company, 7 maintain a 'buy' rating and 3 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 12%.

For IIFL Finance, Jefferies has a price target of Rs 760. Downside risks for the stock include slowdown in core segments, higher than expected margin pressure, regulatory changes relating to MFI and co-lending, and deterioration in asset quality and potential haircuts to investments in AIF/ ARCs, according to Jefferies.

The scrip fell as much as 3.7% to 639.10 apiece. It was trading 3.68% lower at Rs 639.40 apiece, as of 12.42 p.m. This compares to a 0.45% advance in the NSE Nifty 50 Index.

It has risen 33% on a year-to-date basis. Total traded volume so far in the day stood at 1.7 times its 30-day average. The relative strength index was at 52.82.

Six analysts tracking the company have maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 23%.

Shares of Oil India Ltd jumped as much as 19.04% to Rs 406.40 apiece, its highest level. This compares to a 0.6% advance in the NSE Nifty 50 Index.

It has risen 18.56% on a year-to-date basis. Total traded volume so far in the day stood at 14 times its 30-day average. The relative strength index was at 80.88, indicating that the stock may be overbought.

Out of 18 analysts tracking the company, 16 maintain a 'buy' rating, and 2 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 7.5%.

• Tips Industries at 24.97 times of its 30 day average

• Heritage Foods at 6.54 times of its 30 day average

• Nippon Life India Asset Management at 5.9 times of its 30 day average

• Varun Beverages Ltd at 4.17 times of its 30 day average

• Voltas Ltd at 4.02 times of its 30 day average

• 12.9 lakh shares changed hands in a large trade

• 0.2% equity changed hands at Rs 633.20 apiece

• Buyers and sellers not known immediately

Source: Bloomberg

Embassy Office Parks REIT fell over 4.96% on Wednesday as Blackstone to sell entire 23.5% stake in the company via mega block deal.

The floor price has been set at Rs 310 per share, which is 7% discount from the from its Tuesday's closing price of Rs 335 apiece on the BSE.

Shares of the Embassy Office Park REIT Ltd declined as much as 4.69% to Rs 320 apiece. It pared losses to trade 0.22% higher at Rs 335 apiece, as of 10:15 a.m. This compares to a 0.48% advance in the NSE Nifty 50 Index.

It has fallen 0.37% on a year-to-date basis. Total traded volume so far in the day stood at 3.548 times its 30-day average. The relative strength index was at 60.36.

Around fourteen analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 10.9%

GMM Pfaulder Ltd. shares rose as much as 5.70% to 1,635 apiece, it last traded at this level around Nov. 16, 2023. It was trading 5.57% higher at Rs 1,633 apiece, as of 10:00 a.m. This compares to a 0.72% advance in the NSE Nifty 50 Index.

It has risen 4.21% on a year-to-date basis. Total traded volume so far in the day stood at 13 times its 30-day average. The relative strength index was at 62.

Out of 3 analysts tracking the company all maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an downside of 1.6%.

• The stock is listed at a premium of 25% to the IPO price

• The IPO price was Rs 493 per share

Source: India Shelter Finance Corporation listing event

• Lists at a premium of 77.22% on NSE

• Lists at Rs 1400 on BSE vs issue price of `790

• Lists at a premium of 77.22% on BSE

Source: Exchanges

Shares of all information technology companies rose after the world's largest IT company Accenture Plc announced its results for the first quarter.

The company's first quarter revenue was slightly above consensus estimates and the company maintained its revenue guidance for the fiscal ending August 2024.

Shares of UltraTech Cement rose as much as 1.11% to Rs 10,128 apiece, its highest level. This compares to a 0.52% advance in the NSE Nifty 50 Index. It has risen 45.1% on a year-to-date basis.

Shares of Deepak Nitrite rose as much as 4.51% to Rs 2,391.30, it last traded at this level on Dec 15, when it touched a new high of Rs 2,410. It pared gains to trade 3.60% higher at Rs 2,370.45 apiece, as of 9:39 a.m. This compares to a 0.63% advance in the NSE Nifty 50 Index.

It has risen 20.05% on a year-to-date basis. Total traded volume so far in the day stood at 6.7 times its 30-day average. The relative strength index was at 73.

Out of 18 analysts tracking the company, 10 maintain a 'buy' rating, 3 recommend a 'hold,' and 5 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 14.1%.

Varun Beverages Ltd.'s share rose over 17% to hit life high after the board of directors on Tuesday approved the acquisition of The Beverage Company and its subsidiary to expand its geographical footprint in South Africa.

Shares of Varun Beverages rose as much as 17.79% to hit record high at Rs 1,380. The stock was trading 10.61% higher at Rs 1,295.95 as of 9:39 a.m. compared to a 0.58% advance in the benchmark Nifty 50.

The stock has risen 97.07% year-to-date. The total traded volume so far in the day stood at 22 times its 30-day average. The RSI stands at 85, indicating that stock may be overbought.

Of the 19 analysts tracking the company, 15 maintain a 'buy', three recommend a 'hold,' and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a downside of 14.3%.

Shares of Nippon Life India Asset Management Ltd. rose nearly 9% and touched a life high after its 2.9% equity shares in pre-market large trade.

Benchmark indices opened at their fresh life highs today with only four stocks declining in both Nifty and the Sensex.

The Nifty 50 rose to hit a lifetime high of 21,568.65 points and the Sensex made a high of 71,838.84 points.

At pre-open, the NSE Nifty 50 Index was up 90.40 points, or 0.42%, at 21,543.50 while the S&P BSE Sensex was 210.47 or 0.29% higher at 71,647.66.

"Traders should purchase the dips with a strict stop loss of 21350 on a closing basis. Long-term investors should maintain their position with the indicated trailing stop loss," said Deven Mehata, research analyst at Choice Broking.

A minor retracement to the lower range of 21,100 levels cannot be ruled out which is the rising channel support line over the past few weeks, said Vikas Jain, senior research analyst at Reliance Securities.

Shares of Infosys Ltd., Reliance Industries Ltd., HDFC Bank Ltd., Tata Consultancy Services Ltd., and ICICI Bank contributed the most to the gains.

Meanwhile, those of Mahindra & Mahindra Ltd., Maruti Suzuki Ltd., Titan Co. Ltd., and Coal India Ltd., capped the upside.

All sectoral indices gained with Nifty IT and FMCG gaining the most while Nifty Pharma and Nifty Auto rose the least.

Broader markets rose. The BSE Midcap was up 0.56%, while the Smallcap was 0.67% higher.

All 20 sectors compiled by BSE Ltd. advanced.

At pre-open, the NSE Nifty 50 Index was up 90.40 points, or 0.42%, at 21,543.50 while the S&P BSE Sensex was 210.47 or 0.29% higher at 71,647.66.

The yield on the 10-year bond opened flat at 7.17% on Wednesday.

Source: Bloomberg

The local currency opened flat at 83.19 against the U.S dollar on Wednesday.

Source: Bloomberg

• 33 lakh shares changed hands in two pre-market large trades

• 7.5% equity changed hands at Rs 1,103.60 apiece

• Buyers and sellers not known immediately

Source: Bloomberg

• 13.2 lakh shares changed hands in a pre-market large trade

• 0.5% equity changed hands at Rs 1889.80 apiece

• Buyers and sellers not known immediately

Source: Bloomberg

• Become aware of ransomware incident in isolated cloud environment for one of its projects

• No impact observed due to this incident on overall HCLTech network

• Detailed investigation is underway in consultation with relevant stakeholders to assess root cause

Source: Exchange Filing

Jefferies

• Rated buy with TP of Rs 1,100

• Expects excessive focus on PepsiCo brands, which should be margin assertive

• Target adds 7-15% on EBITDA volumes

• EV/Ebitda comes to 7-8x which is attractive

Emkay

• Post 70% run up in share price, maintains reduce rating with a TP of Rs. 1,150

• Remain confident of share gains for VBL, given its strong track record in Zimbabwe and Nepal

• Sees cluster-based cost synergies, which should further boost earnings growth potential

• Acquisition multiple at 0.7x CY23E sales is attractive

• Consistent outperformance vs. peers and value creation provide scope for further re-rating

Motilal Oswal

• Reiterates Buy rating with TP of Rs. 1285

• The acquisition of BevCo is EPS-accretive for the company and represents an attractive valuation

• Expects a CAGR of 17%/20%/26% in revenue/EBITDA/PAT over CY22-25

• Investment in subordinate units of AIF subject to full deduction from lender's capital

• Banks/NBFCs to liquidate investments in 30 days

• Piramal Enterprises, IIFL with Rs 45 billion & Rs 11 billion of investments in AIF, respectively

• Limited impact as PIEL & IIFL's investments have exposure in firms preceding last 12 months

• Net worth hit around -8% for IIFL and -10% for PIEL, if provided for entire exposure

• Exposure for covered banks nominal

• U.S. Dollar Index at 102.22

• U.S. 10-year bond yield at 3.91%

• Brent crude up 1.83% at $77.95 per barrel

• Nymex crude up 0.07% at $72.52 per barrel

• GIFT Nifty was down 0.03% at 21,610 as of 7:31 a.m. 

• Bitcoin was down 0.42% at $42,318.88

• Price band revised from 10% to 5%: Nintec Systems.

• Ex/record AGM: IFCI, Rashtriya Chemicals and Fertilizers.

• Moved Out of short-term ASM framework: BCL Industries, Bliss GVS Pharma, Syncom Formulations.

• Nifty December futures up 0.24% to 21,527.75 at a premium of 74.65 points.

• Nifty December futures open interest up 7.9%.

• Nifty Bank December futures up 0.13% to 48,009.80 at a premium of 138.9 points.

• Nifty Bank December futures open interest up by 3.6%.

• Nifty Options Dec. 21 Expiry: Maximum call open interest at 21,500 and maximum put open interest at 21,400.

• Bank Nifty Options Dec. 20 Expiry: Maximum call open interest at 48,000 and maximum put open interest at 46,500.

• Securities in the ban period: Balrampur Chini Mills, Delta Corp, Indus Tower, IRCTC, Manappuram Finance, National Aluminum, Piramal Enterprise, RBL Bank, SAIL, Zee Entertainment.

• Jindal Saw: Cresta Fund sold 20 lakh shares (0.62%), Albula Investment Fund sold 2.6 lakh shares (0.08%) while Global Worth Securities bought 6.8 lakh shares (0.21%), Societe Generale bought 5 lakh shares (0.15%), HSBC Mutual Fund bought 4.19 lakh shares (0.13%), Flowers Valley bought 4 lakh shares (0.12%), Madhukar Sheth bought 2.6 lakh shares (0.08%) at Rs 429.1 apiece.

• Apollo Tyres: White IRIS Investment sold 2.85 crore shares (4.49%), while Nippon India Mutual Fund bought 1.2 crore shares (1.89%), ICICI Prudential Mutual Fund bought 30 lakh shares (0.47%), Societe Generale bought 23.07 lakh shares (0.33%), Morgan Stanley Asia Singapore PTE bought 16.40 lakh shares (0.24%), among others, at Rs 448.35 apiece.

• Ajmera Realty and Infra: Fahrenheit Fun and Games sold 7 lakh shares (1.97%), while Quest Investment Advisors-PMS bought 3.01 lakh shares (0.84%), Quest Investment Advisors-PMS Multi bought 2 lakh shares (0.56%) at Rs 425 apiece.

• Motisons Jewellers: The public issue was subscribed 51.50 times on day 2. The bids were led by non-institutional investors (69.68 times), retail Investors (64.60 times) and institutional investors (0.66 times).

• Suraj Estates: The public issue was subscribed 2.42 times on day 2. The bids were led by retail investors (3.9 times), non-institutional investors (2.06 times) and institutional investors (0.12 times).

• Muthoot Microfin: The public issue was subscribed 2.83 times on day 2. The bids were led by retail investors (4.06 times), non-institutional investors (3.12 times) and employee reserved (2.87 times) and institutional investors 0.46 times.

• RBZ Jewellers: The public issue was subscribed 2.28 times on day 1. The bids were led by retail investors (4.55 times), and non-institutional investors (0.71 times). There were no bids from institutional investors.

• Credo Brands: The public issue was subscribed 2.09 times on day 1. The bids were led by retail investors (3.29 times), non-institutional investors (2.06 times), and institutional investors (0.01 times).

• Happy Forgings: The public issue was subscribed 2.32 times on day 1. The bids were led by non-institutional investors (3.58 times), retail investors (3.03 times), and institutional investors (0.01 times).

• Azad Engineering: The IPO will open for bids on Wednesday. It will comprise a fresh issue of Rs 240 crore and an offer for sale of Rs 500 crore. The price band is fixed at Rs 499-524. The company has raised Rs 3,328 crore from anchor Investors. 

• DOMS Industries: The company's shares will debut on the stock exchanges on Wednesday at an issue price of Rs 790 apiece. The Rs 1,200-crore IPO was subscribed 93.52 times on its third and final day. Bids were led by institutional investors (115.97 times), retail investors (69.67 times), non-institutional investors (66.51 times), and portion reserved for employees (29.21 times).

• India Shelter Finance Corp: The company's shares will debut on the stock exchanges on Wednesday at an issue price of Rs 493 apiece. The Rs 1,200-crore IPO was subscribed 36.71 times on its third and final day. Bids were led by institutional investors (89.7 times), non-institutional investors (28.51 times) and by retail investors (9.95 times).

• Bharat Petroleum Corp: The company approved a proposal for setting up 400 KTPA polypropylene unit at its Kochi refinery. The cost of the project is Rs 5,044 crore which will be funded in a debt-equity ratio of 65:35.

• Glenmark Life Sciences: The Competiton Commission of India has approved the acquisition of majority shareholding of Glenmark Life Sciences by Nirma.

• Embassy Office Parks REIT: Blackstone is looking to sell its entire 23.5% stake in the company via a mega block deal on Wednesday. The floor price is set as Rs 310 per share.

• Nippon Life India AMC: IndusInd Bank will sell a 2.86% stake in the company via a block deal on Wednesday. The floor size is set at Rs 426 per share, 5% discount to Tuesday's closing price.

• Transformers And Rectifiers: The company received an order worth of Rs 118 crore from Uttar Pradesh Power Transmission Corp.

• Rail Vikas Nigam: The company emerged as the lowest bidder for a project worth 123 crore in a 49: 51 Joint venture with KRDCL. The project is to upgrade Varkala Sivagiri railway station in Kerala.

• Mining and metals stocks: Nearly 100 more blocks of critical minerals will be put on auction before February, Coal and Mines Minister Pralhad Joshi said on Tuesday. Offshore minerals will be put on sale in the auction that will take place in March and April.

• JK Tyre and Industries: The company opened its QIP for raising up to Rs 500 crore and has set the floor price of QIP at Rs 358.96 per share, which indicates a discount of 5.2% to the stock's previous close of Rs 378.70 on the NSE.

• Varun Beverages: The company will acquire South Africa's the Beverage Co. and its subsidiaries for ZAR 3 billion or Rs 1,320 crore. The company signed an MoU with the Jharkhand government for the Patratu manufacturing plant with a total capital outlay of Rs 450 crore.

• ITC: The company’s unit Infotech India incorporated a wholly owned subsidiary ITC Arabia for about Rs 35 crore.

• Tech Mahindra: CP Gurnani ceases to be MD and CEO of the company on account of the completion of his tenure. Mohit Joshi to take over as CEO and MD effective Dec. 20.

• Wipro: The company’s unit Wipro Holdings has transferred 100% shareholding in Designit A/S to Wipro IT Services UK Societas.

• NTPC: The group achieved its fastest 300 billion units of power production so far in FY24.

• Jubilant FoodWorks: The company's unit, Jubilant Foodworks Netherlands, launched a cash offer to acquire the remaining 45.33% share capital of DP Eurasia, a subsidiary company of JFN, at Rs 95 pence per share.

• Godrej Agrovet: Sandeep Kumar Singh has resigned from the position of CEO of the animal feed business. AY Rajendra has been appointed as CEO of the animal feed business.

• National Fertilizers: The company approved the setting up of a Nano Urea (Liquid) production plant based on the financial viability in the Techno-Economic - Feasibility Report.

• Deepak Nitrite: The company approved the offtake of 250 KTPA propylene and 11 KTPA hydrogen from Petronet LNG's Dahej plant. Petronet LNG will supply hydrogen and propylene to the company’s unit Deepak Phenolics for 15 years.

• Maithan Alloys: The company invested 49.84 crores in GAIL by purchasing 38.34 lakh shares 0.06% stake in the company through an open market.

• Abbott:  Vivek V Kamath resigned from the position of managing director w.e.f March 18, 2024.

The December futures contract of the GIFT Nifty traded 0.03% lower at 21,610 as of 7:31 a.m. 

Most markets in the Asia-Pacific region rose, tracking overnight gains on Wall Street as traders continued to remain optimistic about the U.S. Federal Reserve cutting interest rates in 2024.

Equities in Japan rose as traders assessed the Bank of Japan's policy meeting outcome. The Japanese central bank held the rate steady at -0.1%, and maintained its yield curve control policy, in line with market expectation. The Nikkei was 1.32% higher at 33,656.92 as of 06:28 a.m.

Share indices in Australia and South Korea were also trading in green. The S&P/ASX 200 was 0.58% higher at 7,532.60, while the KOSPI was 0.92% up at 2,592.28 as of 06:28 a.m.

The S&P 500 index and Nasdaq 100 advanced 0.59% and 0.49%, respectively on Tuesday. The Dow Jones Industrial Average rose by 0.68%.

Brent crude was trading up 1.83% at $77.95 per barrel as of 07:31 a.m. Gold fell 0.09% to $2,025.45 an ounce.

India's benchmark indices recovered from intraday losses and ended higher, tracking gains in Reliance Industries Ltd., NTPC Ltd., and ITC Ltd.

The S&P BSE Sensex was up 122.09 points, or 0.17%, at 71,437.19, while the NSE Nifty 50 ended 34.45 points, or 0.16%, higher at 21,453.10.

Intraday, the Nifty 50 declined 0.38%, or 80.90 points, to 21,337.75; while the BSE Sensex fell 0.34%, or 243.11 points, to 71,071.89.

Overseas investors remained net sellers of Indian equities for the second consecutive session on Tuesday. Foreign portfolio investors offloaded stocks worth Rs 601.5 crore, while domestic institutional investors mopped up stocks worth Rs 294.3 crore, according to data from the NSE.

The Indian rupee closed 13 paise lower at Rs 83.19 against the U.S. dollar.