Share Market Today: Sensex, Nifty Snap Four-Week Gaining Streak; FPIs Turn Net Sellers

Overseas Investors turned net sellers just after a day of net buying, on Nov. 18.

As per data from the National Stock Exchange, foreign portfolio investors net sold equities worth Rs 751.2 crores.

While, domestic institutional investors remained net buyers and bought equities worth Rs 890.45 crore.

Institutions have net bought Rs 9,469.04 crore worth of equities so far in November and net sold Rs 22,227.87 crore worth of Indian equities till date in 2022.

Yield on the 10-year bond rose 3bps to close at 7.30% on Friday. It opened at 7.29%.

On Thursday, it closed at 7.28%.

Source: Bloomberg

The local currency closed at 81.70 on Friday, depreciating by 7 paise.

The rupee appreciated 7 paise to 81.56 at the open before paring gains to fall as low as 0.19% or 15 paise to 81.78 intraday.

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

Source: Bloomberg

Indian stock benchmarks ended lower on Friday, snapping a four-week gaining streak dragged by declines in auto, energy, oil & gas stocks.

Sensex declined 0.11% to close at 61,679.71 on Friday, while the Nifty 50 closed 0.20% lower at 18,307.65.

Today, 35 of Nifty 50 stocks declined while 14 rose. HCL Technologies, Hindustan Unilever, Asian Paints, State Bank of India, Kotak Mahindra Bank were the top gainers on Nifty 50. Mahindra & Mahindra, NTPC, Bajaj Auto, IndusInd Bank, Maruti Suzuki India were the top losers.

Sectorally, PSU banks, IT and realty were the top gainers of the week while media, auto and FMCG, the top laggards.

The broader indices underperformed larger peers with mid-cap gauge declining 0.44% and small-cap measure losing 0.45%.

Eighteen of the 19 sectoral indices compiled by BSE Ltd. declined with BSE Auto losing 1.23%.

The market breadth is skewed in the favour of bears. About 1,443 stocks rose, 2,054 fell and 129 remained unchanged.

Astral Ltd. logged its longest losing streak in six years after its second quarter earnings missed estimates, while PVC prices continued to fall.

The stock as much as 0.99% intraday, declining for eight straight day. It later pared the losses and gained 0.10%.

Of the 23 analysts tracking the company, 11 maintain 'buy', seven suggest 'hold' and five recommend 'sell'. The return potential of the stock implies an upside of 12%.

As per Yes Securities' channel checks:

-PVC prices are already down about Rs9/Kg in Oct-Nov, hence Inventory losses are expected to continue in Q3FY23 as well.

-Though Lower PVC is likely to boost demand, as per our checks- pipe demand continues to remain sluggish & dealer inventory is still at low levels.

Source: Bloomberg, Brokerage notes

Bharat Electronics Ltd. has signed a licensing agreement for transfer of technology with Combat Aircraft Systems Development and Integration Centre, a laboratory under DRDO.

The deal will allow BEL to manufacture and supply digital radar warning receivers- a type of electronic warfare system to Indian Armed Forces.

The lab will transfer technical details, testing and maintenance method to BEL.

The stock declined as much as 3.80%. Of the 21 analysts tracking the company, two maintain 'buy', three suggest 'hold' and 16 recommend 'sell'. The return potential of the stock implies an downside of 26%.

Source: Exchange filing

HEG Ltd. gained as much as 6.3% on Friday, the most since Nov. 14. It is now trading 4.9% up. Total traded volume is 2.8 times the 30-day average.

Of the three analysts tracking the company, two maintain 'buy', one suggests 'hold' and none recommend 'sell'. The return potential of the stock implies an upside of 43.7%.

On Nov. 11, the company announced that it is incorporating a subsidiary to foray into manufacturing of graphite anodes for lithium ion cells and its allied and ancillary products.

The plant would be made in two phases, with an investment of Rs 1,000 crore over three years in phase one. This would cater to 10-12 GWH of cell manufacturing capacity.

In phase two, the company plans to double the capacity with another Rs 1,000 crore investment, catering to a total of 20 MWH cell manufacturng capacity.

Since then, the stock has gained 4.71%.

Source: Bloomberg, Exchange filings

Shares of New Delhi Television Ltd. declined after the company's committee of independent directors, in their recommendations, said the open offer price is “fair and reasonable but added that the company’s shares have been trading significantly higher since the announcement.

The open offer by the acquirer, Vishvapradhan Commercial Pvt., along with persons acting in concert—AMG Media Networks Ltd. and Adani Enterprises Ltd.—is looking at acquiring a 26% stake in New Delhi Television Ltd. from the public. The open offer will commence on Nov. 22.

Separately, Income Tax Department has again stayed a tax demand of Rs. 59.98 crore for NDTV.

The stock declined 5%, breaking a four-day streak.

Since the open offer was announced on Aug. 23, the stock has jumped 8.5% to Rs 401.15 and is trading at a significant premium.

The stock is also at a premium of 36.4% to Adani's open offer price of Rs 294.

Total traded quantity is 8.5 times the 30-day average.

Source: Bloomberg, Exchange filings

India's stock benchmarks extended losses dragged by broad based declines.

As of 12:36 p.m., Sensex lost over 300 points or 0.54% to 61,417.41, while the Nifty 50 declined over 100 points or 0.57% to trade at 18,239.80.

Today 43 of Nifty 50 stocks declined while 7 rose. Kotak Mahindra Bank, Tata Motors, Axis Bank, Hindustan Unilever and State Bank of India were the top gainers on Nifty 50, while Mahindra& Mahindra, Bajaj Finance, Coal India, Eicher Motors and Britannia Industries were the top laggards.

The mid-cap gauge mirrored the benchmarks, falling 0.54% while the small-cap measure outperformed its larger peers with a decline of 0.40%.

All of the 19 sectoral indices compiled by BSE Ltd. declined.

The market breadth is skewed in the favour of bulls. About 1,315 stocks rose, 2,042 fell and 148 remained unchanged.

Shares of Page Industries Ltd. declined after the company clarified that it is expanding its manufacturing facility to cater to future demand.

The stock fell as much as 0.83%. The relative strength index is 28, suggesting that the stock might be oversold.

The company is looking for land parcel or buildings suitable to its requirement across Telangana state. The company officials met the officials from Government of Telangana on Nov. 16. to understand availability of land, price, location. It hasn't submitted any definitive agreement or formal proposal.

The comments came in response to a media report that said the company will invest Rs 290 crore to set up two facilities in the state. The company added that there is no material impact of this article.

Of the 24 analysts tracking the company, eight maintain 'buy', nine suggest 'hold' and seven recommend 'sell'. The return potential of the stock implies an upside of 8%.

Source: Bloomberg, Exchange filing

• Telangana-based Skyroot has successfully launched Vikram-S, India’s first privately-made rocket from the Satish Dhawan Space Centre in Sriharikota.

• The rocket is a single stage suborbital space launch vehicle carrying three payloads.

• The startup was founded in 2018 and has raised $68 million till date.

Source: Company statement

Shares of FSN E-Commerce Ventures Ltd., which operates the beauty and apparel retailer Nykaa, continued to gain despite investors offloading their stake.

The stock gained as much as 5.93% on Friday- the most this week. Total traded volume is 2.2 times the 30-day average.

As many as 5.42 crore shares, equaling 1.9% of the equity, changed hands in two block trades on the National Stock Exchange, according to pre-market Bloomberg data.

The shares were sold at Rs 184.55 apiece, equalling a stake worth Rs 1,000.54 crore being offloaded. The price was at a marginal discount to Thursday's closing of Rs 185.6.

As per several reports, TPG Capital was expected to sell shares worth Rs 1,000 crores in the company via a block deal on Friday.

Since the lock-in period expired, several major investors, such as Ambuja Cements' Narotam Sekhsaria, TPG and Lighthouse India Fund, have sold large stakes to trim their holdings in the faltering stock.

Of the 20 analysts tracking the company, 15 maintain 'buy', three suggest 'hold' and two recommend 'sell'. The return potential of the stock implies an upside of 30.1%.

Source: Bloomberg

Bajaj Healthcare Ltd. shares gained after the U.S. FDA issued no 483 observations after inspecting it API facility in Gujarat.

The stock rose as much as 7.53% on Friday. Total traded quantity is 52.1 times the 30-day average. The relative strength index is 74, which indicates that the stock might be overbought.

Bajaj Healthcare said pre-approval inspection of U.S. FDA has completed successfully with zero 483 observation. U.S. FDA completed first ever pre-approval inspection of its API facility located at Vadodara, Gujarat.

Source: Bloomberg, Exchange filing

Shares of Fortis Healthcare Ltd. gained after markets regulator SEBI gave its approval to IHH Healthcare to buy additional stake in the company.

The stock gained as much as 6.61% intraday to 304.2 per share. It is now up 4.38%. Total traded quantity is 6.1 times the 30-day average.

SEBI advised Malaysia-based IHH Healthcare to proceed with its open offer to acquire additional 26.1% stake in the company after obtaining appropriate order from the Delhi High Court.

IHH is now seeking legal counsel for further steps.

Of the 11 analysts tracking the company, all maintain 'buy'. The return potential of the stock implies an upside of 16.7%.

Source: Bloomberg

Shares of Blue Dart Express Ltd. gained on Friday after the company announced opening of 25 retail outlets in Tier I and II cities as part of its expansion plan.

The stock rose as much as 2.72%, set on course to rise for the second day. Total traded volume is 3.4 times the 30-day average.

The company also plans to set up 100 new stores in the near future.

Of the 11 analysts tracking the company, six maintain 'buy', two suggest 'hold' and three recommend 'sell'. The return potential of the stock implies an upside of 13.3%.

Source: Bloomberg, Exchange filing

The Indian currency reversed its opening gains against the greenback to 81.65, depreciating by 2 paise. Rupee opened at 81.56 on Friday.

It closed at 81.63 on Thursday.

Source: Bloomberg

Soon after the market opened, Indian stock benchmarks Sensex and Nifty pared their opening gains.

As of 9:57 a.m. Sensex is down 0.20% to 61,624.53, while Nifty 50 is trading 0.26% lower at 18,296.80.

India's stock benchmarks opened higher led by broad-based gains.

Sensex gained 0.17% or 107 points to open at 61,858.20, while the Nifty 50 rose 0.21% or 39 points to open at 18,382.95.

Among Nifty 50 constituents, 29 stocks advanced while 18 declined.

Asian Paints Ltd., Cipla Ltd., Larsen & Toubro Ltd., Tata Consumer Products Ltd. and HDFC Life Insurance Co. were the top gainers on Nifty 50, while Mahindra & Mahindra Ltd., Nestle India Ltd., Hero MotoCorp Ltd., Britannia Industries Ltd. and Titan Co. were the top laggards.

The broader indices underperformed their larger peers with mid-cap falling 0.05% , while the small-cap gained 0.13%.

Eleven out of the 19 sectoral measures complied by the BSE advanced with IT and telecom gauges gaining the most.

The market breadth is skewed in the favour of the bulls. About 1,509 stocks advanced, 1,003 declined while 112 remained unchanged.

Yield on the 10-year bond rose 1bps to 7.29% at the open on Friday. It closed at 7.28% on Thursday.

Source: Bloomberg

Indian currency appreciated by 6 paise to 81.56 at the open against the greenback on Friday. It closed at 81.63 on Thursday.

Source: Bloomberg

• U.S. Dollar Index at 106.69

• U.S. 10-year bond yield at 3.77% on Thursday

• Brent crude down 3.3% to $89.78 per barrel

• Nymex crude at $82.04 per barrel

• SGX Nifty up 0.05% to 18,383.5 as of 6:05 a.m.

• Bitcoin rose 1.17% to $16,876.6.

• One 97 Communications: BofA Securities Europe SA bought 50.26 lakh shares (0.77%), Morgan Stanley Asia Singapore bought 60.03 lakh shares (0.92%), Societe Generale-ODI bought 70.85 lakh shares (1.09%) at Rs 555 apiece, SVF India Holdings (Cayman) sold 2.93 crore shares (4.52%) at Rs 555.67 apiece.

• FSN E-Commerce Ventures: Canada Pension Plan Investment Board bought 1.7 crore shares (0.6%) at Rs 175.25 apiece, Mala Gopal Gaonkar sold 5.75 crore shares (2.02%) at Rs 175.48 apiece.

• Bajaj Healthcare: Progyan Construction & Engineers sold 2.2 lakh shares (0.79%) at Rs 384.32 apiece.

• Hindustan Construction Company: IDBI Trusteeship Services sold 2.2 crore shares (1.45%) at Rs 16.4 apiece.

• India Infrastructure Trust: LGT Wealth India bought 38 lakh shares at Rs 95.5 apiece.

• Aditya Birla Fashion and Retail: The company entered into a strategic partnership with Galeries Lafayette to open luxury department stores and a dedicated e-commerce platform in India.

• Blue Dart Express: The company announced opening of 25 retail outlets in Tier I and II cities as part of its expansion plan.

• UltraTech Cement: The company commenced operations at its third white putty plant in Nathdwara, Rajasthan with a capacity of 4 LMT per annum.

• Life Insurance Corporation of India: The insurer reduced its shareholding on Bajaj Auto to 5.2% from 7.2%.

• New Delhi Television: The Income Tax Department has again stayed a tax demand of Rs. 59.98 crore against the company for assessment year 2007-08.

• Fortis Healthcare: SEBI has advised Malaysia-based IHH Healthcare to proceed with its open offer to acquire additional 26.1% stake in the company after obtaining appropriate order from the Delhi High Court. IHH is now seeking legal counsel for further steps.

• Bharat Electronics: The company has signed an MoU with Advanced Weapons and Equipment India to jointly address domestic and export opportunities in the areas of air defence, artillery gun systems, medium caliber weapons, small arms and related systems. The company has also signed an agreement with Armoured Vehicles Nigam for collaboration in in the areas of combat vehicles, main battle tanks, infantry fighting vehicles, armored fighting vehicles and related systems.

• Vedanta: The board of the company will meet on Nov. 22 to consider and approve third interim dividend for the current fiscal.

• CSB Bank: Bhama Krishnamurthy appointed part-time chairperson with effect from Nov. 17, 2022, till Sept. 28, 2024.

• Ahluwalia Contracts (India): The company has secured two contracts cumulatively worth Rs 530.1 crore.

Asian stocks edged higher Friday amid investors' caution after Federal Reserve officials warned of more pain ahead as they raise interest rates to fight inflation.

At 8:15 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- gained 0.25% to 18,420.

The dollar steadied after gains on Thursday. Oil was poised for a weekly loss of almost 8% as concerns over a worsening demand outlook filtered through the crude market. Gold fell 0.7%, while Bitcoin saw a marginal rise of 1.1% to $16,859.06.

Indian benchmark indices snapped their two-day rally Thursday as utilities, consumer durables, and auto stocks weighed down the market.

The rupee closed lower against the U.S. dollar for the second day in a row on account of a stronger greenback and muted domestic equities.