Share Market Today: Sensex, Nifty End With Losses; Broader Markets Underperform
The S&P BSE Sensex was down by 461 points or 0.75% at 61,337.81 while the NSE Nifty 50 was 146 points or 0.79% lower at 18,266.
KEY HIGHLIGHTS
Yield On The 10-Year Bond Yield Stays Flat
The yield on the 10-year bond ended flat on Friday as it rose 1.1 bps to 7.28%.
Source: Bloomberg
Indian Rupee Depreciates Against The U.S. Dollar
The Indian rupee fell against the U.S. dollar on Friday.
The local currency ended at 82.87, about 12 paise or 0.14% lower.
It closed at 82.75 on Thursday.
Source: Bloomberg
Closing Bell
The Indian benchmark indices recouped losses from the day's low and settled lower in trade on Friday. Extending their losses the markets fell for second straight week.
The S&P BSE Sensex was down by 461 points or 0.75% at 61,337.81 while the NSE Nifty 50 was 146 points or 0.79% lower at 18,266.
Dr. Reddy's Laboratories Ltd., Mahindra and Mahindra Ltd., Adani Ports and SEZ Co., Asian Paints Ltd. and BPCL Ltd. were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, Tata Motors Ltd., HDFC Bank Ltd., Hindustan Unilever Ltd., Tata Steel and JSW Steel Ltd., and Hero MotoCorp Ltd. were the top laggards in the gauge.
The broader market indices underperformed their larger peers as the S&P BSE MidCap was down by 1.44%, whereas S&P BSE SmallCap was lower by 0.66%.
All the sectoral indices compiled by BSE declined in trade, with S&P BSE Realty losing the most.
The market breadth was skewed in favour of the bears. About 1,413 rose, 2,118 declined, and 131 remained unchanged on the BSE.
Benchmarks extended their weekly losses by falling further this Friday. Sensex was down 1.09% and Nifty was lower by 1.07% in the last week. However, the indices fell by 1.36% and 1.23%, respectively this week.
The weekly sectoral performance in the markets indicated that Nifty PSU Bank and Nifty SmallCap Index advanced this week, whereas Nifty Media, Nifty FMCG and Nifty Realty declined the most.
Larsen & Toubro Hits All-Time High
Shares of Larsen & Toubro Ltd. rose in trade on Friday and hit a 52-week high at Rs 2,211.6.
Columbia Emerging Markets Fund added Larsen & Toubro Ltd. to its investments, according to Bloomberg data. The fund's disclosed holdings rose 13% in value to $1.42 billion. Also, Larsen & Toubro Ltd. won two significant orders within Rs 1,000-2,500 crore, it revealed in an exchange filing on Thursday.
The stock was trading at 0.29% with relative strength index at 71 implying the stock may be overbought.
Out of the 44 analysts tracking the stock, 43 maintained a 'buy' rating, while one recommended a 'sell' on the stock.
Source: Bloomberg, Exchange filing
Oil And Gas Stocks Advance
The Oil and Gas stocks advanced in trade on Friday after the government slashed windfall tax on crude from Rs 4,900 per tonne to Rs 1,700 per tonne. Levy on diesel exports were cut to Rs 5 per litre from Rs 8. Also, the windfall tax on aviation turbine fuel was slashed from Rs 5 per litre to Rs 1.5.
Aegis Logistics Ltd., Oil India Ltd., Adani Total Gas Ltd., Reliance Industries Ltd., ONGC Ltd. and GAIL Ltd. rose in trade.
European Markets Open Lower
Suryoday SFB Rises After Large Trade
Shares of Suryoday Small Finance Bank Ltd rose 2.78% in trade on Friday as five million shares or 4.7% of equity changed hands in a single bunch.
The scrip was trading at 9.9 times its 30-day average.
The one analyst tracking the stock maintained a 'buy' rating.
Source: Bloomberg
Dilip Buildcon Receives Order Worth Rs 976-Crore
NHAI approves order worth Rs 976 crore from Dilip Buildcon Ltd.
The project entails four laning of Mehgama-Hansdiha in Jharkhand on hybrid annuity mode.
Sugar Stocks Rise On Hopes Of Higher Sugar Export Quota
Sugar stocks rose in trade on Friday on the hopes of a hike in the sugar export quota, as per a PTI report.
Rajshree Sugars & Chemicals hit a 52-week high of Rs 55.55 and hit an upper circuit in trade on Friday. The stock rallied by 19.98%.
Sugar stocks that were buoyant in trade included, Ugar Sugar Works, Simbhaoli Sugars, Sakthi Sugars and Bajaj Hindustan among others.
According to a PTI report, after assessing the domestic production in January, the government indicated that they may consider hiking the sugar export quota for the current fiscal.
Source: Bloomberg, PTI
Sensex, Nifty Recoup Losses
Midday Market Update
The Indian benchmark indices continued trading under pressure on Friday as most sectors were in red, except Oil and Gas stock.
The S&P BSE Sensex was down by 236 points or 0.38% at 61,526.83 while the NSE Nifty 50 was 78 points or 0.43% lower at 18,336.60.
ONGC Ltd., Reliance Industries Ltd., HDFC Life Insurance Co., Tech Mahindra Ltd. and Eicher Motors Ltd. were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, Mahindra and Mahindra Bank Ltd., ITC Ltd., Dr Reddy's Laboratories Ltd., Adani Ports and SEZ Ltd., and Hero MotoCorp Ltd. were the top laggards in the gauge
The broader market indices underperformed their larger peers as the S&P BSE MidCap was down by 1.07%, whereas S&P BSE SmallCap was up by 0.49%.
Seventeen of the BSE's 20 sectoral indices decline, while only S&P BSE Energy, S&P BSE Telecommunication and S&P BSE Oil & Gas advanced.
The market breadth was skewed in favour of the bears. About 1,389 rose, 2,012 declined, and 130 remained unchanged on the BSE.
Dr Reddy's To Stop Development Of Psoriasis Drug
Company will stop the clinical development of INDUS-3, a drug meant to treat psoriasis.
This after, Aurigene reports the results of a study, concluding that the magnitude of efficacy improvement was "not what we hoped for" in the study.
Shares of Dr Reddy's Laboratories Ltd. declined 1.24% in trade on Friday. The scrip opened down by 1.76%, the most since Dec. 6.
Out of the 42 analysts tracking the stock, 34 maintained a 'buy' rating, while six suggested 'hold' and 'two' recommended a 'sell' on the stock.
Source: Bloomberg, Exchange filing
Patel Engineering Rises After Approving Rs 350-Crore Rights Issue
Shares of Patel Engineering Ltd. rose 1.90% on Friday after it announced a fundraise via rights issue in an exchange filing.
The company will allot equity shares having face value of ₹ 1 each, amounting to an aggregate of Rs 350 crore on rights basis to the eligible equity shareholders of the Company.
The stock was trading at 1.2 times its 30-day average volume. The scrip outperformed Sensex as the headline indice was down by nearly 0.46% in trade.
Source: Bloomberg, Exchange filing
Tata Chemicals Declines Most Since Nov. 10
Shares of Tata Chemicals Ltd. were down 3.86% on Friday, it fell 3.99%, the most in five weeks since Nov. 10.
The scrip was trading at 2.3 times its 30-day average volumes.
Out of the nine analysts tracking the stock, eight maintained a 'buy' rating, while one suggested 'hold'.
Source: Bloomberg
Venky's Gains Over 7% As Malaysia Allows Import Of Eggs From India
Shares of Venky's India Ltd. gained over 7% after Malaysia allowed the entry of chicken eggs from India amid a supply shortage.
"The ministry has today allowed the entry of chicken eggs from India via air as a trial phase to ensure imported chicken eggs meet all set standards," Malaysia's Minister of Agriculture and Food Security Mohamad Sabu said in a statement.
Venky's India, in an earnings release earlier this year, had said it is the fourth largest producer of specific pathogen-free eggs in the world.
Reacting to the development, shares of Venky's India gained as much as 7.1% to Rs 2,124.95 apiece.
Bharat Electronics Falls
Shares of Bharat Electronics Ltd. were down 4.36% in trade on Friday. It fell the most in eight weeks since Oct. 21.
The scrip was trading at 3.4 times its 30-day average.
Out of the 31 analysts tracking the stock, 27 maintained a 'buy' rating, two suggest 'hold' and two recommend 'sell'.
Bajaj Hindusthan Sugar Gains After A Large Trade
Shares of Bajaj Hindusthan Sugar Ltd. rose to 9.94% and locked in an upper circuit on Friday.
About 5.5 million Bajaj Hindusthan shares changed hands in a bunched trade, the scrip was trading at 4.7 times its 30-day average volume.
The relative strength index at 75 implied that the stock might be overbought.
Source: Bloomberg
CAMS Rises Beating The Gains In Sensex
Shares of Computer Age Management Services Ltd. rose 2.01% in trade on Friday. It gained as much as 3.28%, the most in nine weeks since Oct. 13.
The Sensex declined by 0.35%, while CAMS gained.
The stock was trading at 1.8 times its 30-day average volume. Out of the eight analysts tracking the stock, seven maintained a 'buy' rating, one suggests 'hold' and two recommend 'sell'.
IT Stocks Widen Losses
After dragging the indices on Thursday, IT stocks continued their downfall on Friday.
The NSE Nifty IT Index was down by 1.05%, while Persistent Systems Ltd., LTIMindtree Ltd., Larsen and Toubro Technology Services Ltd. and TCS Ltd., where the top losers in the gauge.
All 10 constituents of the Nifty IT gauge decline in trade on Friday.
Source: Exchanges
GMM Pfaudler Falls Most In Over Three Years After 16% Equity Changes Hands
Shares of GMM Pfaudler Ltd. tanked on Friday following a large block trade.
The stock fell as much as 18.11% to trade at Rs 1,576.1 per equity share. As of 9:36 a.m., it was trading 15.11% lower at Rs 1,633.8 apiece.
Total traded quantity is 457.6 times the 30-day average.
According to data on Bloomberg, at least 16% of equity or 72.4 lakh shares traded hands in at least one bunched trade.
Of the total five analysts tracking the stock, all maintained a 'buy'. The return potential of the stock implies an upside of 57.5%.
The relative strength index stood at 26, indicating that the stock might be oversold.
Source: Bloomberg
Opening Bell
After falling the most in two months at opening on Thursday, the Indian benchmark indices continued to decline on Friday.
The S&P BSE Sensex was down by 265 points or 0.43% at 61,534.24 while the NSE Nifty 50 was 96 points or0.52% lower at 18,319.10.
ONGC Ltd., Reliance Industries Ltd., Tata Motors Ltd., Coal India Ltd. and Larsen & Toubro Ltd. were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, Kotak Mahindra Bank Ltd., TCS Ltd., Wipro Ltd., Apollo Hospitals Enterprise Ltd., and HCL Technologies Ltd. were the top laggards in the gauge.
The broader market indices were a mixed bag in trade as the S&P BSE MidCap was down by 0.16%, whereas S&P BSE SmallCap was up by 0.26%.
Eleven of the BSE's 19 sectoral indices went up, while eight declined in trade.
The market breadth was skewed in favour of the bears. About 1,733 rose, 1,084 declined, and 124 remained unchanged on the BSE.
Engineers India Wins Order From Adani Group
Engineers India Ltd. secures a deal from Mundra Solar Technology Ltd., a group company of Adani Enterprises Ltd. for Polysilicon production.
The order entails the production of 30,000 MTPA Polysilicon and 500 MTPA Monosilane.
Polysilicon is the primary component for manufacturing Photovoltaic panels.
Source: Exchange filing
Yield On The 10-Year Bond Opens Flat
The yield on the 10-year bond opened flat at 7.28% on Friday.
Source: Bloomberg
Indian Rupee Declines Against The U.S. Dollar
The Indian rupee depreciated against the U.S. dollar on Friday. The rupee opened nine paise lower at 82.84 against the greenback.
It closed at 82.75 on Thursday.
Source: Bloomberg
Rate Sensitives In Focus; May Find Floor Soon | Trade Setup For Friday
Windfall Tax On Crude, Diesel Exports Reduced
Windfall tax on crude slashed from Rs 4,900 per tonne to Rs 1,700 per tonne.
Levy on diesel exports cut to Rs 5 per litre from Rs 8.
Source: Gazette of India
European Central Bank Hikes Interest Rates By 50 Bps
The European Central Bank increased interest rates by half a percent on Thursday, after successive hikes of 75 basis points, following Fed's hike on Wednesday.
The hike has lifted the deposit rate to 2%.
Global Cues
U.S. Dollar Index at 104.55
U.S. 10-year bond yield at 3.46% on Thursday
Brent crude down 1.8% to $81.21 per barrel
Nymex crude at $76.13 per barrel
SGX Nifty fell 0.28% to 18,408 as of 8:14 a.m.
Bitcoin down 0.07% to $17,411.5
Bulk Deals
Repco Home Finance: Apax Global Alpha sold 3.64 lakh shares (0.58%) at Rs 243.68 apiece.
Stocks To Watch
Reliance Industries: Reliance Consumer Products launched FMCG brand ‘Independence’ in Gujarat to cater to demand in categories like edible oil, staples, processed foods, beverages and other daily essentials. Reliance Digital Health, another subsidiary of the company, signed a deal to acquire 2.25% stake in New York-based Synchron.
Wipro: The company signed a five-year, multi-million-dollar deal with Mazda Motor Logistics Europe to help industrialise Mazda IT, digitise processes, and enable agile DevOps. It signed another deal with fintech player Finastra to deploy its trade finance solutions in Middle East.
Deepak Fertilisers and Petrochemicals Corporation: The board approved a composite scheme of arrangement to restructure the company’s mining chemical and fertiliser businesses.
Hindustan Petroleum Corporation: The company will raise Rs 10,000 crore debt via non-convertible debentures, bonds or notes.
HDFC Asset Management Company: Life Insurance Corporation of India increased its stake in the company to 9.053% from 7.024%.
AIA Engineering: The company will buy 26% stake in Clean Max Meridius.
Hindustan Foods: The company will purchase Himachal manufacturing plant of Reckitt Benckiser for Rs 156 crore.
Shriram Transport Finance: The board will meet on Dec. 24 to consider the proposal for a dividend.
Shriram Pistons & Rings: The company will acquire majority stake in Singapore-backed electric motor design and manufacturing specialist company EMF Innovations through subsidiary SPR Engenious for a consideration of Rs 78 crore.
SJVN: Subsidiary SJVN Green Energy achieved financial closure of its 1,000 MW solar power project at Bikaner, Rajasthan.
IRCTC: The offer for sale by the company was oversubscribed 3.08 times on the first day. It will open on Dec. 16 for retail investors.
Power Finance: Plans to raise funds from the corporate bond market today. Power Finance’s bonds forms more than two-third of the volumes up for sale.
IDBI Bank: Files Insolvency Plea Against Zee Entertainment to recover Rs 1.5 billion.
SGX Nifty, Global Cues Signal Weak Opening
Shares fell in Asia on Friday, as the Japanese Nikkei, Australian ASX, and Hong Kong's Hang Seng declined by 1.63%, 1.01%, and 0.3%, respectively, in early trade.
The S&P 500 closed at its lowest level in more than a month as investors sought safe-haven assets following warnings from the U.S. Federal Reserve and the European Central Bank of more pain to come.
Oil was little changed after a drop on Thursday as renewed fears of a global slowdown offset hopes that China’s easing of Covid-19 restrictions would help boost demand.
Domestic benchmark indices closed in the red following Federal Reserve’s rate hike and signs that it was not done with its fight against inflation. While 19 of 20 BSE sectoral indices fell, BSE Oil & Gas managed to close flat.
Overseas investors in Indian equities turned net sellers on Thursday, ending a two-day buying streak. Foreign portfolio investors sold equities worth Rs 710.7 crore, while the Domestic institutional investors remained net buyers for the seventh day, mopping up equities worth Rs 260.9 crore, according to NSE data.
Rupee reversed gains against the U.S. dollar from yesterday to fall as much as 0.4% during the session and close near the day’s low.
At 8:14 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- fell 0.28% to 18,408.