Share Market Today: Sensex, Nifty Decline; FPIs Stay Net Sellers

Overseas Investors remained net sellers for the second straight day on Monday.

 As per data from the National Stock Exchange, foreign portfolio investors net bought equities worth Rs 1,593.83 crores.

 While, domestic institutional investors remained net buyers and bought equities worth Rs 1,262.91 crore.

 Institutions have net bought Rs 9,138.12 crore worth of equities so far in November and net sold Rs 22,558.79 crore worth of Indian equities till date in 2022.

Yield on the 10-year bond pared its opening losses and rose 1bps to close at 7.32% on Monday. It fell 2 bps to 7.28% at the open.

It closed at 7.30% on Friday.

Source: Bloomberg

The Indian rupee depreciated against the U.S. dollar on Monday.

It closed down 0.18% at 81.84, depreciating by 14 paise. During day's trade, the rupee fell by as much as 21 paise to 81.9.

The local currency opened at 81.81, depreciating 11 paise against the greenback. It closed at 81.70 on Friday.

The rupee had hit a record low of 83.29 on Oct. 20.

Source: Bloomberg

Indian stock benchmarks closed lower on Monday, declining the most in 11 days, dragged by information & technology, utilities, power and realty stocks.

The Sensex closed 0.84% lower at 61,144.84, while the Nifty 50 fell 0.81% to 18,159.95.

Among the Nifty 50 constituents, 14 stocks rose while 36 declined. Adani Ports, Tech Mahindra, Reliance Industries, Hindalco Industries, Tata Consultancy Services were the top Nifty 50 losers.

Meanwhile, BPCL, Bharti Airtel, Axis Bank, IndusInd Bank and Hindustan Unilever were the top gainers.

The broader indices outperformed their larger peers with the mid-cap losing 0.15%, and small-cap remaining flat.

The large-cap index almost mirrored its large peers, losing 0.85%.

Eighteen out of the 19 sectoral measures compiled by BSE Ltd. declined, with BSE Utilities, Information & Technology, Power, Realty indices losing the most over 1%.

The market breadth is skewed in favour of bears. About 1,513 stocks rose, 2,082 fell and 177 remained unchanged.

• Essar Ports and Essar Power concluded the Rs 16,500-crore sale of captive ports and power assets to Arcelor Mittal Nippon Steel India.

• The sale consisted of infra assets include a 270 MW power plant and 25 MPTA port at Hazira, Gujarat and a 12 MPTA port at Paradip, Odisha.

• Essar has concluded its asset monetisation programme and completed the debt repayment of Rs 2 lakh crore, effectively making the group debt-free from Indian banks and financial institutions, Essar Capital Director Prashant Ruia said.

Source: Company statement

Several public sector banks such as UCO Bank India Ltd., Bank of Maharashtra Ltd. and Punjab and Sind Bank Ltd. extended gains, soaring as much as 10% each. Peers Central Bank of India and Indian Overseas Bank too advanced about 9-10% each.

Apart from banks, Kudremukh Iron Ore Co., Satluj Jal Vidyut Nigam Ltd. Ircon International Ltd. and Rashtriya Chemicals & Fertilizers Ltd. all gained between 5 and 10%.

Shares of Deepak Fertilisers and Petrochemicals Corporation rose after it inked a pact with Aarti Industries to supply Nitric acid.

The stock gained as much as 8.48%- the most since Oct. 17. It is now trading up 5.87%. Total traded volume is 2.7 times the 30-day average.

Meanwhile, Aarti Industries rose as much as 4.06%- the most since Oct. 19. Total traded volume is 1.9 times the 30-day average.

The companies signed a binding sheet for a 20 year period for offtake and supply of Nitric Acid. The parties plan to execute the formal agreement by the end of this calendar year.

The deal cost is estimated to be more than Rs 8,000 crore. The supply arrangement will start from April 1, 2023.

Source: Bloomberg, Exchange filings

Shares of Ahluwalia Contracts (India) rose after it secured an order worth Rs 120.23 crore.

The stock rose as much as 4.54%. Total traded quantity is 5.7 times the 30-day average.

The company won a project from the Government of Assam to construct Lachit Moidam Memorial & Cultural Complex at Lahdoigarh, in Assam state.

Of the nine analysts tracking the company, eight maintain 'buy', one suggests 'hold' and none recommend 'sell'. The return potential of the stock implies an upside of 17.5%.

Source: Bloomberg, Exchange filing

India's stock market extended losses, dragged by declines in energy, information & technology, oil & gas stocks.

The Sensex was trading 0.87% lower at 61,126.82 as of 12:34 p.m., while the Nifty 50 declined 0.85% to 18,152.30.

Among Nifty 50 constituents, 10 stocks rose and 39 declined, while one remained unchanged. BPCL, Bharti Airtel, Hindustan Unilever, Axis Bank and Britannia Industries were the top gainers. While SBI Life Insurance, JSW Steel, Hero MotoCorp, Tata Consultancy Services and HDFC were the top laggards on the Nifty 50.

The broader indices outperformed their larger peers, with the mid-cap losing 0.23% and small-cap gaining 0.16%. While large-cap almost mirrored its large peers, losing 0.84%.

Eighteen out of the 19 sectoral measures complied by BSE declined, with BSE Energy, Information & Technology and Oil & Gas losing the most over 1%.

The market breadth is skewed in favour of the bears. About 1,421 stocks rose, 2,018 fell and 188 remained unchanged.

Shares of Allied Digital advanced after the company won a contract worth Rs 207.21 crore in consortium with KEC International.

The company won a 'Smart City' contract for the Punjab Municipal Infrastructure Development Company.

The stock rose as much as 8.03%- the most since Nov. 9. Total traded volume is 3.5 times the 30-day average.

It expects the project to be executed in a period of 57 months which includes nine months for implementation and 48 months of project support.

Source: Bloomberg, Exchange filings

Arvind shares declined 0.93%. Of the six analysts tracking the company all maintain 'buy'. The return potential of the stock implies an upside of 54.4%.

The first fibre recycling facility will be located near one of Arvind’s manufacturing facilities in India.

The facility will process textile wastes such as white cotton, colored cotton, denim and synthesis into virgin like fibres for reuse from two lines, where each line will have a 5,500- ton capacity per year with plans to expand over the next five years.

The investment for these two lines is seen at Rs 200-250 crore.

The joint venture is slated to start construction in the fourth quarter of 2022 with full production expected to commence in the fourth quarter of 2023.

Source: Exchange filing

Shares of Kabra Extrusiontechnik gained 10.71% after it inked a pact to supply 3 lakh battery packs to Hero Electric.

Total traded volume is 4.6 times the 30-day average.

Kabra Extrusiontechnik’s Battrixx has inked a partnership with Hero Electric to supply 3 lakh lithium-ion battery packs and chargers in the next financial year.

The batteries will be fitted across Hero Electric’s entire e-scooter range.

Source: Bloomberg, Exchange filing

Shares of Aurobindo Pharma fell after U.S. Food and Drug Administration issued Form 483 with ten observations after inspecting the company's Unit-IX, which is an intermediate facility in Telangana state.

The stock fell as much 1.41%. Of the 32 analysts tracking the company, 24 maintain 'buy', six suggest 'hold' and two recommend 'sell'. The return potential of the stock implies an upside of 30.6%.

The U.S. FDA inspected the facility from Nov. 10 to Nov. 18. "These observations are procedural in nature and not related to data integrity," the drug maker said. It will respond to the U.S. FDA, within the stipulated timeline and shall work to address the observations at the earliest, Aurobindo said.

The U.S. drug regulator classified the unit as OAI or Official Action Indicated. This means regulatory and/or administrative actions will be recommended, according to U.S. FDA website. Aurobindo said it has responded to the agency and carried out the required corrective actions.

Source: Bloomberg, Exchange filings

• Shares of Archean Chemical Industries listed at Rs 449 per share on the BSE, a premium of 10.31% to its IPO price of Rs 407.

• On the NSE, the stock listed at Rs 450, a 10.56% premium.

• Its IPO was subscribed 32.23 times.

Source: BSE, NSE

• Shares of Five Star Business Finance listed at Rs 449 per share on the BSE, a discount of 0.22% to its IPO price of Rs 474.

• On the NSE, the stock listed at Rs 468, a 1.26% discount.

• Its IPO was subscribed 70%.

Source: BSE, NSE

Shares of Easy Trip Planners surged as the company, which operates travel website Easemytrip.com, traded ex-bonus and ex-split on Monday.

The stock soared as much as 20.02% intraday- the most since Sept. 16, 2021. It is now trading 10.70% higher.

The company, in a stock exchange filing on Nov. 10, fixed Nov. 22 as record date for 1:2 stock split and 3:1 bonus issue.

Total traded volume is 41.9 times the 30-day average. Of the four analysts tracking the company, two maintain 'buy', one suggests 'hold' and one recommends 'sell'. The return potential of the stock is 3.1%.

Source: Bloomberg

Shares of Jet Airways declined after its new owners, Jalan-Kalrock Consortium said it has not breached any terms of the insolvency resolution plan and might take difficult near-term decisions to manage cashflows.

The new owners failed to restart the operations of the grounded airline despite sharing plans of resuming flights by October 2022.

The stock fell 4.98%, set to extend losses for thirteen days in a row. Total traded volume is 5.6 times the 30-day average. The relative strength index of the stock is at 8, which suggests it might be oversold.

The Jalan-Kalrock Consortium reiterated its commitment to restart the airline. CEO Sanjiv Kapor said letters of intent for aircraft, engines, IT systems, ground handling services, catering, call centre, and all other services required to run an airline are in place.

Source: Bloomberg, Statements

Shares of Zomato declined after the company's co-founder Mohit Gupta resigned.

The stock went down 3.05%- the most in a week. Total traded volume stood at 1.2 times the 30-day average.

Gupta's resignation comes amid a spate of executive exits at the online delivery platform. Earlier this week, Rahul Ganjoo, the head of new initiatives, had exited the company. Siddharth Jhawar, vice president and head of Zomato's intercity legends service, disclosed last week that he has left Zomato.

Gupta is the second co-founder to quit Zomato since it listed on the bourses 16 months ago. In September last year, Gaurav Gupta had left the organization citing newer opportunities.

The leadership exodus also comes about three months after Co-founder and Chief Executive Officer Goyal, in an internal note to employees, said that Zomato will transition into a company with multiple CEOs leading each of their businesses—Zomato, Blinkit, Hyperpure, and Feeding India.

Of the 24 analysts tracking the company, 18 maintain 'buy', 4 suggest 'hold' and 2 recommend 'sell'. The return potential of the stock is 32.3%.

Source: Bloomberg, Exchange filing

Shares of Indian Energy Exchange (IEX) gained on Monday after the company on Friday announced that it is considering buyback of equity shares.

The stock gained as much as 5.71%- the most since Feb. 25. Total traded volume is 8.4 times the 30-day average.

Of the 15 analysts tracking the company, four maintain 'buy', five suggest 'hold' and six recommend 'sell'. The return potential of the stock is 2.4%.

The board of the company will meet on Nov. 25 to consider a proposal for buyback of fully paid-up equity shares of the company.

Source: Bloomberg, Exchange filings

Shares of steel and iron-ore producers gained after the Ministry of Finance removed export duties levied on steel products and iron-ore six months after they were imposed.

According to a notification, exports of iron ore & fines with iron content below 58% will attract 'nil' export duty.

Meanwhile, exports of iron ore lumps and fines of grade about 58% will attract lower export duty of 30%. The exports of iron-ore pellets will attract 'nil' export duty.

Some exports of pig iron and steel products will attract 'nil' export duty

Anthracite/PCI & coking coal and ferronickel will attract import duty of 2.5%.

Coke and Semi coke will attract 5% import duty.

Source: Ministry of Finance, Bloomberg

India's stock benchmarks opened lower on Monday as rising coronavirus cases in China and outlook for rate hikes in the U.S. dampened investor sentiments.

Sensex declined 0.34% to open at 61,456.33. Nifty 50 fell by a similar magnitude to 18,246.40.

Out of the 50 Nifty 50 stocks, 13 stocks advanced while 37 declined.

JSW Steel, Tata Steel, Eicher Motors, BPCL and Bharti Airtel were the top gainers on Nifty 50. While, Bajaj Finance, Mahindra & Mahindra, SBI Life Insurance Co., ITC and Tech Mahindra were the top laggards.

The broader indices outperformed their larger peers with mid-cap losing 0.22% and small-cap gaining 0.11%. While large-cap underperformed its large peers, losing 0.54%.

Fourteen out of the 19 sectoral measures complied by BSE declined, with BSE Oil & Gas losing the most over 1%.

The market breadth is skewed in the favour of bulls. About 1,402 stocks rose, 1089 fell and 153 remained unchanged.

Yield on the 10-year bond fell 2bps to 7.28% at the open on Monday.

Source: Bloomberg

Indian currency depreciated by 11 paise to 81.81 at the open against the greenback on Monday. It closed at 81.70 on Friday.

Source: Bloomberg

• U.S. Dollar Index at 107

• U.S. 10-year bond yield at 3.82% on Friday

• Brent crude up 0.07% to $87.68 per barrel

• Nymex crude at $80.01 per barrel

• SGX Nifty down 0.01% to 18,345 as of 6:13 a.m.

• Bitcoin fell 0.45% to $16,180.1.

• Archean Chemical Industries: The shares of the company will be listed on the exchanges on Nov. 21. The company's IPO price was Rs 407. The IPO was subscribed 32.23 times, with the QIB portion subscribed 48.91 times, non-institutional investors’ portion subscribed 14.9 times, and the retail portion subscribed 9.96 times.

• Five Star Business: The shares of the company will be listed on the exchanges on Nov. 21. The company's IPO price was Rs 474. The IPO was subscribed 0.7 times, with the QIB portion subscribed 1.77 times, non-institutional investors’ portion subscribed 0.61 times, and the retail portion subscribed 0.11 times.

• Zomato: Co-founder Mohit Gupta resigned from the company.

• Jet Airways: The Jalan-Kalrock Consortium reiterated its commitment to restart the airline. CEO Sanjiv Kapor said letters of intent for aircraft, engines, IT systems, ground handling services, catering, call centre, and all other services required to run an airline are in place.

• Engineers India: The company secured an order by Chennai Petroleum Corporation Ltd. for overall project management and EPCM services for OHCU revamp, CDWU and related off-site facilities for group-II LOBS project at Manali Refinery.

• PB Fintech: The company made an investment of $2 million and acquired 26.72% shares of YKNP Marketing Management, a limited liability company through PB Fintech FZ-LLC, a wholly owned subsidiary.

• South Indian Bank: The bank increased MCLR across tenors by 10 basis points, with effect from Nov. 20.

• Maruti Suzuki: The company launched Alto K10 with S-CNG technology at Rs 5.94 lakh.

• Sheela Foam: The board approved the scheme of amalgamation for merger of International Comfort Technologies with the company.

• Indian Energy Exchange: The board of the company will meet on Nov. 25 to consider the proposal for buyback of shares.

Stocks open mixed in Asia on Monday as investors continued to focus on the outlook for global interest rates and Covid in China.

Indian markets will likely take cues from global developments when they open on Monday. Domestic metal stocks will, however, be in focus as the government cut export duty on steel.

India's benchmark indices snapped four-week gaining streak to end lower on the week through Nov. 18. The Sensex dipped 131.56 points or 0.21%, while the Nifty declined 42.05 points or 0.22% on Friday.

U.S. stocks ended with a slight gain on Friday after shrugging off Federal Reserve warnings that there was more policy tightening to come. Oil futures fell on signs that the market is currently awash in supply.

At 8:30 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- was down 0.49% at 18,258.50.