Sensex falls 215 points; metal stocks shine
22 November 2019
Market Close: Benchmark indices ended lower but off day's low as buying in metal and energy stocks helped Nifty to hold above 11,900.
At close, the Sensex was down 215.76 points or 0.53% at 40359.41, while Nifty was down 54 points or 0.45% at 11914.40. About 1220 shares have advanced, 1306 shares declined, and 184 shares are unchanged.
Bharti Infratel, Infosys, Asian Paints, TCS and UPL were among major losers on the Nifty, while gainers included Eicher Motors, Tata Steel, Zee Entertainment, JSW Steel and NTPC.
On the sectoral front, selling seen in the IT, FMCG, bank, while metal, auto and energy saw buying.
Lupin launches Hydrocortisone Valerate Cream: The company launched Hydrocortisone Valerate Cream USP, 0.2%, having received an approval from the United States Food and Drug Administration (USFDA) earlier.
RBL Bank jumps 6%: Shares of RBL Bank rallied 6 percent on November 22 and second top gainer in the BSE Midcap index. Chola Securities feels the stock would be market performer, especially after strong earnings growth barring weak asset quality in Q2FY20.
DHFL locked in 5% upper circuit: Shares of Dewan Housing Finance Corporation were locked in 5 percent upper circuit on November 22 after a media report indicated that Adani Group showed interest to acquire the company.
Market Update: Indian indices are trading lower but off day's low with Nifty above 11,900.
The Sensex is down 220.16 points or 0.54% at 40355.01, and the Nifty down 61.50 points or 0.51% at 11906.90. About 1017 shares have advanced, 1281 shares declined, and 159 shares are unchanged.
BP Equities recommends subscribe to CSB Bank:
CSB has posted turnaround results in 6MFY20 and has improved its operational and financial performance. We believe the bank should do well with the recent capital raise and its strong risk management frameworks. On valuation front, at the upper end of the price band, CSB is valued at 2.31x P/BV and 25.31x P/E. Taking into account huge growth prospects and its comfortable asset quality, stock looks attractive for investment.
Market Update: Benchmark indices are trading lower in the afternoon trade on November 22.
The Sensex is down 222.85 points or 0.55% at 40352.32, and the Nifty down 63.70 points or 0.53% at 11904.70. About 963 shares have advanced, 1294 shares declined, and 144 shares are unchanged.
Investments via P-notes rise in October after registering fall for 4 months
After declining for four consecutive months, investments through participatory notes (P-notes) in the Indian capital market marginally rose to Rs 76,773 crore at the end of October. P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly after going through a due diligence process.
Before registering gain in October, investments through P-notes had been declining continuously since June, according to the latest data from markets regulator Sebi.
CSB Bank IPO subscribed 27% so far, retail book gets full
The Rs 410-crore public offer of CSB Bank (erstwhile The Catholic Syrian Bank) has been subscribed 27 percent so far on first day of bidding November 22. The public issue received bids for 28.85 lakh equity shares against IPO size of 1.15 crore shares (excluding anchor book), as per data available on exchanges.
The reserved category of retail investors fully subscribed (1.4 times) while the portion set aside for non-institutional investors received subscription of 3 percent but qualified institutional buyers is yet to get subscripion.
The Kerala-based lender already raised Rs 184 crore from anchor investors on November 21, at higher end of price band of Rs 193-195 per share.
ITC, Motherson Sumi Systems on Morgan Stanley Focus List, rally 3-4%
FMCG major ITC gained 2.82 percent and auto ancillary Motherson Sumi Systems' 4 percent in the morning trade on November 22. The gains came after the two companies found a place on Morgan Stanley’s Focus List.
However, the research firm removed Container Corporation of India and Asian Paints from the list. Both stocks have corrected more than 1.5 percent each.
Goldman Sachs has maintained its buy rating on Motherson, with a target price at Rs 155, implying 26.5 percent potential upside from current level.
Alembic Pharmaceuticals receives USFDA approvals: The company has received US Food & Drug Administration (USFDA) final approval for Deferasirox Tablets 90 mg and 360 mg, final approval for Deferasirox Tablets for Oral Suspension, 125 mg, 250 mg, 500 mg and tentative approval for Deferasirox Tablets 180 mg.
Rupee Update: The Indian rupee erased its morning gains and trading near day's low at 71.85 per dollar.
Market Update: Benchmark indices are trading near the day's low level with Nifty slipped below 11,900.
The Sensex is down 246.42 points or 0.61% at 40328.75, and the Nifty down 71.50 points or 0.60% at 11896.90. About 902 shares have advanced, 1131 shares declined, and 116 shares are unchanged.
IndiaNivesh recommends subscribe to CSB Bank IPO:
CSB Bank has seen a remarkable turnaround after the new promoter took charge of its affairs in FY19. FIHB is originally promoted by Canadian billionaire Mr. Prem Vatsa, known for making strategic investments turning businesses around. The impact is visible in H2FY20 numbers where CSB returned to the black after posting losses for three consecutive years. At the upper end of issue price it is available at P/BV of around 2.19x on ‘TTM’ basis.
We expect CSB Bank to embark on a growth trajectory of over 20% on business and profitability for next couple of years. There is ample scope for it to get re-rated at higher a multiple of 2.5x to 2.7x P/BV after listing.
Morgan Stanley upgrades NTPC, share price gains 3%
NTPC share price rose 3 percent intraday on November 22 after Morgan Stanley upgraded the rating of the company to overweight, with a target at Rs 152 per share. The company's fixed costs under-recovery was reducing, while potential government stake sale remained an overhang, the brokerage house said.
The steady commissioning should drive earnings and risk-reward was attractive as two of the three concerns either reversing or known, it added.
Motilal Oswal on CSB Bank IPO:
At the upper price band, the issue is valued at 2.4x P/B on 1HFY20 post issue diluted basis. Post the acquisition by Fairfax group, the realigned operational strategy has helped the company to report profits in 1HFY20.
The company is focused to improve profitability and growth going ahead. We believe that given the strong promoter backing and turnaround in profitability, investor can subscribe to the IPO for listing gains.
Govt to sell stake in RITES via OFS: RITES share price slipped more than 3 percent on November 22 after government is going to sell its stake in the company via offer for sale (OFS).
HSBC retains buy in Reliance Industries: Reliance Industries share price gained over 1 percent on November 22 after foreign research house retained buy rating and raised the target price.
Macquarie on Ujjivan
Neutral rating, target raised to Rs 325 from Rs 260 per share
Ujjivan SFB listing imminent
Pre-IPO deal values SFB at 1.7x FY21E BV
Promoter stake sale/reverse merger now new monitorable
Morgan Stanley on NTPC
Upgrade to overweight, target at Rs 152 per share
Fixed costs under-recovery reducing
Impact of regulations known, potential govt stake sale remains an overhang
Risk-reward attractive as 2 out of 3 concerns either reversing or known
Steady commissioning should drive earnings
HSBC on Financials
Near-term Growth outlook deteriorated further in Q2 for most AFCs
Alert: AFC is asset financing company
Feedback suggests muted post-festive period demand
Expectations now hinge upon revival in rural demand post good monsoon
Retain Bajaj Finance as our preferred pick
HSBC on Reliance Industries
Retain Buy rating, target raised to Rs 1,700 from Rs 1,565 per share
Operating trends for both telecom & organised retail remain strong
Telecom & retail set to drive near-term upside potential
Jio plans to raise tariffs, offering scope for rapid improvement in profitability
Market Opens: It is negative start for the Indian indices with Nifty around 11,950 level.
At 09:16 hrs IST, the Sensex is down 16.00 points or 0.04% at 40559.17, and the Nifty down 12.90 points or 0.11% at 11955.50.
NTPC, Sun Pharma, ITC, Nestle, ICICI Bank, Coal India, Tata Motors are among major gainers on the Indices, while losers are Zee Entertainment, Bharti Airtel, Asian Paints and BPCL.
Among sectors, except bank and IT, all other indices are trading higher.
Crude Update: Oil prices were toppled from their highest in nearly two months on Friday by doubts over future demand for crude as uncertainty continues to shroud a potential US-China trade deal, and along with it the health of the global economy.
Rupee Opens: The Indian rupee opened flat at 71.75 per dollar on Friday versus Thursday's close 71.76.
Market at pre-open: Benchmark indices are trading flat in the pre-opening session on November 22.
At 09:03 hrs IST, the Sensex is up 61.07 points or 0.15% at 40636.24, and the Nifty up 4.50 points or 0.04% at 11972.90.
Dollar update: The dollar held overnight gains on Friday, as investors clung to the safe-haven pending developments in Sino-U.S. trade negotiations and amid a growing scepticism about reports of progress in the talks.
Zee Entertainment Enterprises promoter group sells 14.28 crore of company shares
The promoter group of the company has sold more than 14 crore shares in the bulk deals on November 21. The promoters including Cyquator Media Services Private Limited, ESSEL Corporate LLP and ESSEL Media Ventures Limited sold their respective share in the company via bulk deal.
Cyquator Media Services Private Limited has sold 6,16,26,543, ESSEL Corporate LLP sold 1,18,38,350 shares and ESSEL Media Ventures Limited sold 6,94,03,106 shares of the company at an average price of Rs 304 per share.
Asian shares up from three-week lows, but trade uncertainty nags
Asian equities rose on Friday, bouncing from a three-week low touched a day earlier, but gains were capped by persistent worries over the status of trade negotiations between China and the United States.
Early in the Asian trading day, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.12%. The index had fallen as much as 1.41% on Thursday, hitting its lowest level since October 30. Australian shares were up 0.52% and Japan's Nikkei gained 0.1%.
SGX Nifty: Trends on SGX Nifty indicate a flat opening for the broader indices in India, a fall of 4 points or 0.03 percent. Nifty futures were trading around 11,973-level on the Singaporean Exchange.