Share Market Today: Nifty, Sensex Close Flat; Metals, PSU Banks Offset Losses In Healthcare, IT
Sensex closed 34 points, or 0.05%, lower at 62,834.60, while the Nifty ended the day 5 points, or 0.03%, higher at 18,701.05
KEY HIGHLIGHTS
Yield On The 10-Year Bond Remains Flat
Yield on the 10-year bond remained flat at 7.22% on Monday.
Source: Bloomberg
Rupee Depreciates Against The U.S. Dollar
The local currency rupee declined against the U.S. Dollar and closed 47 paise lower at 81.79.
The previous close on Friday was at 81.32.
Source: Bloomberg
Closing Bell
Indian benchmark indices Sensex and Nifty recouped most of it's loses to close flat in trade on Monday.
The S&P BSE Sensex closed 34 points, or 0.05%, lower at 62,834.60, while the NSE Nifty 50 ended the day 5 points, or 0.03%, higher at 18,701.05
Among the Nifty 50 stocks, 27 advanced, while 23 declined.
Hindalco Industries Ltd., Tata Steel Ltd., UPL Ltd., JSW Steel Ltd. and NTPC Ltd. were the top Nifty gainers.
On the other hand, Adani Enterprises Ltd., Apollo Hospitals Enterprise, Tata Motors Ltd., Tech Mahindra Ltd. and Dr. Reddy's Laboratories were the top laggards.
The broader market indices outperformed their larger peers, with the mid-caps and small-caps gauges gaining 0.10% and 0.25%, respectively. The large-cap index mirrored its larger peers and remained unchanged.
Of the 19 sectoral indices compiled by BSE Ltd., 11 advanced, while eight declined.
The market breadth was skewed in favour of the bulls. About 2,121 stocks rose, 1,467 declined and 206 remained unchanged.
SBI Crosses Rs 5 Lakh Crore Mark In Personal Banking Advances
The bank added Rs 1 lakh crore to the portfolio in 12 months
Personal banking advances include unsecured personal loans, auto loans, pension loans, education loans, gold loans, etc.
The stock was up 1.56%. The scrip was up
Out of the 52 analysts tacking the stock, 50 maintained a 'buy,' two suggested to 'hold,' the stock.
The return potential of the stock implied an upside of 16.5% over the next 12 months.
Source: Bloomberg, SBI statement
The European Markets Open Mixed
Gold Financers Ride On Fintech Integration, Analysts Upgrade
Gold loan financers, Manappuram Finance Ltd and Muthoot Finance Ltd gained in trade on Monday after brokerages upgraded the stock on the back of fintech integration in the business.
Manappuram Finance Ltd. was up 5.07% in trade while Muthoot Finance Ltd was up 0.64%.
The shares of Manappuram Finance Ltd. were trading at 3.8 times their 30-day average, with 44% analysts changing their price targets on the stock over the past month. Out of the 21 analysts tacking the stock, 16 maintained a 'buy,' one suggested 'hold,' while one analyst recommended to 'sell' the stock.
On the other hand, the shares of Muthoot Finance Ltd were trading at 1.7 times their 30-day average. Out of the 18 analysts tacking the stock, 13 maintained a 'buy,' four suggested 'hold,' while four analysts recommended to 'sell' the stock.
Morgan Stanley initiated a coverage on gold lenders, while CLSA said that both the companies have "adapted to competition by launching online/doorstep gold loan offering."
With the doorstep loan offering, fintechs have tapped into a customer segment that was historically averse to visiting branches for gold loans due to social stigma.CLSA
Gold lending has been a business with supernormal ROE but low growth – and competition from banks is rising. Diversification is the way out, and Overweight-rated Manappuram looks better positioned than Muthoot both cyclically and structurally. Valuation multiples are also attractive for Manappuram.Morgan Stanley
Shriram Transport Finance And Shriram City Union Merger
Shriram Transport Finance and Shriram City Union Finance will merge to form Shriram Finance
Shriram Finance to have AUM of Rs 1.71 lakh crore
The company will have a networth of Rs 40,900 crore, with over 6.7 million customers
The company will focus on the self-employed and MSMEs
This merger is the result of a three year long discussion, says Umesh Revankar, executive VC, Shriram Finance.
Shriram Finance now has a wide variety of products and services to offer to its customers.
MSMEs are 29% of GDP and estimated to have 63 million enterprises.
We are already the largest in commercial vehicle and two wheeler financing, will continue growing these businesses.
Source: Shriram Finance Statement, Press Briefing
Midday Market Update
The Indian benchmark indices, S&P BSE Sensex and NSE Nifty 50 remained muted in trade following the mixed cues from the global markets.
As of 12:20 pm, on Monday, Sensex was trading 121 points lower, down by 0.19% at 62,748 points. Nifty, on the other hand, saw cuts of 27 points, down 0.14% at 18,670.
Among Nifty 50 stocks, 13 stocks and 37 stocks declined. Hindalco Industries Ltd, Tata Steel Ltd, UPL, ONGC and JSW Steel were the top gainers. Whereas, Adani Enterprises, Tata Motors Ltd, Tech M<hindra Ltd, Britannia and Ultratech Cement were the top Nifty 50 losers.
The broader indices outperformed their larger peers, with the mid-cap gaining 0.06% while small-cap rising by 0.59% in trade. The large-cap index was largely in-line with its larger peers, losing 0.25%.
Fourteen out of the 20 sectoral measures complied by BSE Ltd. declined, with S&P BSE Information technology losing the most over 0.54%.
About 2,122 stocks rose, 1,330 fell and 197 remained unchanged on the BSE.
Source: Bloomberg, Exchanges
Mahindra & Mahindra Financial Services Scales 52-Week High
After the loan disbursements rose 75% year-on-year to Rs 4,500 crore, the shares of Mahindra & Mahindra Financial Services scaled a new 52-week high of Rs 243.60. The collection efficiency of the company also improved to 96% from 94% a year ago.
The stock was up 5.48% in trade. The scrip rose as much as 6.27%, the most since Nov. 3, 2022.
Mahindra & Mahindra Financial Services trades at 5.2 times its 30-day average.
Out of the 33 analysts tacking the stock, 17 maintained a 'buy,' 11 suggested 'hold,' while five analysts recommend to 'sell' the stock.
The return potential of the scrip implied a downside of 4.4% over the next 12 months.
Source: Bloomberg, Exchanges
Rupee Pares All Opening Gains
The local currency, India rupee opened at 81.23, appreciating by 9 paise since the Friday close of 81.32.
However, the rupee erased all its opening gains and depreciated against the U.S. Dollar by 25 paise to 81.48, as of 11:07 am.
Source: Bloomberg
India’s Services PMI Remained Strong In November
Services PMI rose to 56.4 in November, from 55.1 in October
Business activity and sales rose at faster rate, while input costs markedly increased.
Source: S&P Global India
Angel One Down Post Low Client Acquisition In November
Angel One Ltd's gross client acquisition slipped by 6.3% on a monthly basis and 28.3% on a yearly basis in November 2022, as per an exchange filing.
The stock was down 4% in trade. the scrip shed 1.5%, the most since Nov. 23, on Monday.
Angel One Ltd was trading at 2.3 times its 30-day average. Out of the seven analysts tacking the stock, six maintained a 'buy' and one suggested to 'hold' the stock.
The return potential of the scrip implied an upside of 29.1% over the next 12 months.
Source: Bloomberg, Exchanges
Bajaj Hindusthan Sugar Continues The Rally
The scrip hit an upper circuit today at Rs 16.22 after the company clarified on Friday that they have paid the entire overdue towards term loan installments till September 2022.
The stock trades at 81.4 times the 30-day average, with a relative strength of 88, implying that the stock may be overbought.
The company also settled their term loan interests till November 2022 and optionally convertible debentures coupon, payable for FY22 to all the lenders.
Source: Bloomberg, Exchanges
Go First Partners With EaseMyTrip For Saudi Sales
Go First enters into an exclusive general sales agreement with EaseMyTrip in Saudi Arabia.
EaseMyTrip will be an official distributor, promoter, and marketer for passenger tickets in Saudi Arabia.
The three-year exclusive partnership deal eanbles both brands to expand their service range.
Source: Exchanges
LTIMindtree Relists On Bourses As A Merged Entity
L&T Infotech Ltd. and Mindtree Ltd. celebrated their relisting ceremony as the rebranded entity LTIMindtree at the Bombay Stock Exchange, on Monday. LTIMindtree Ltd. traded on bourses after the share swap for the first time on Monday.
The shares of the merged entity opened 18 rupees higher on Monday at Rs 5,086.8.
LTIMindtree has become India’s fifth largest IT services company by market capitalisation. While the erstwhile, Mindtree stock has been delisted from stock exchanges. L&T Infotech has been trading on the bourses with the new, rebranded name LTIMindtree since Nov. 24.
How Are The Shares Allotted?
Investors that owned the Mindtree shares in the demat account till Nov. 24, are eligible for LTIMindtree shares.
A shareholder will get 73 fully paid-up shares of Re 1 each of LTIMindtree for every 100 shares of Rs 10 each of Mindtree.
The Mindtree investors holding fewer than 100 shares will also get LTIMindtree shares. For every 10 shares of Mindtree, they will be allotted 7.3 (10*0.73) LTIMindtree shares.
That means, such investors will get 7 shares of LTIMindtree, and 0.30 will be the fractional entitlement for which the amount will be credited to the bank account linked to the shareholder's demat account.
L&T Infotech & Mindtree Merger
In May 2022, the boards of directors of LTI and Mindtree approved at their respective meetings, a composite scheme of merger of the infotech companies under the Larsen & Toubro Group and created a combined entity with a revenue of more than $3.5 billion. Engineering and construction major L&T officially acquired a controlling stake in Bengaluru-based Mindtree in 2019.
LTI-Mindtree, with a workforce of 90,000 professionals spread over 30 countries and across five continents, will be the fifth largest IT services company in India by market value.
The amalgamation will see the two companies form LTIMindtree, a merged entity with a client portfolio comprising 750 global enterprises from key industry verticals.
Opening Bell
The Indian benchmarks, S&P BSE Sensex opened 61 points lower by 0.01% at 62,865.28. On the other hand, NSE Nifty 50 opened 23 points higher by 0.13% at 18,719.55, on Monday.
Out of the 50 stocks compiled by the NSE Nifty 50 index, 20 stocks advanced and 29 stocks declined and one remained unchanged.
Hindustan Unilever, Power Grid, SBI Life, Nestle and Hero MotoCorp were the top Nifty 50 laggards. While, Hindalco, Tata Steel, JW Steel, IndusInd Bank and UPL gained the most in the gauge at the opening bell.
The broader market indices outperformed their larger peers, with the mid-cap and small-cap gaining 0.25% and 0.44%, respectively.
Out of the 19 sectoral indices compiled by BSE Ltd., Fifteen advanced whereas 4 declined, with S&P BSE Metal gaining the most at 1.24%.
The market breadth is skewed in favour of bulls. About 1,750 stocks rose, 642 declined and 193 remained unchanged.
Trade Setup For Monday
Global Cues
U.S. Dollar Index at 104.51
U.S. 10-year bond yield at 3.54% on Friday
Brent crude up 2.12% to $87.38 per barrel
Nymex crude at $81.50 per barrel
SGX Nifty up 0.20% to 18,862 as of 8:05 am.
Bitcoin up 0.89% to $17,266.26
Offerings
Uniparts India: The issue was subscribed 25.32 times on the final day. The QIB portion was subscribed 67.14 times, while HNIs placed bids for 17.86 times the portion reserved for them. The retail basket was subscribed 4.63 times.
Bulk Deals
Hindustan Construction Company: IDBI Trusteeship Services sold 77.7 lakh shares (0.51%) at Rs 18.18 apiece.
NDTV: Vikasa India EIF I Fund sold 3.89 lakh shares (0.6%) at Rs 414.54 apiece.
IIFL Wealth Management: Nirmal Madhu Family Private Trust sold 5.3 lakh shares (0.59%) at Rs 1,800.08 apiece.
Krishna Institute of Medical Sciences: General Atlantic Singapore sold 14.5 lakh shares (1.81%), Amansa Holdings bought 13.9 lakh shares (1.74%) at Rs 1,480 apiece.
Stocks To Watch
Ceat/MRF: The National Company Law Appellate Tribunal disposed off all 14 appeals against the CCI order against certain tyre manufacturers on cartelisation of the industry. The tribunal remitted the matter back to Competition Commission of India to re-examine arithmetic errors in calculation.
UltraTech Cement: The company commissioned 1.8 MTPA greenfield grinding capacity at Dhule Grinding Unit, Maharashtra, and 1.8 MPTA brownfield clinker-backed second grinding capacity at Dhar Cement Works, Madhya Pradesh.
PNB Housing Finance: The company paid a fine of Rs 3 lakh to BSE and NSE for not having the requisite number of independent directors.
Ion Exchange: The company has won a contract worth Rs 343.36 crore from Indian Oil Corporation Ltd. for designing, engineering, manufacturing, supply, erection, testing, pre-commissioning, commissioning, performance guarantee test run and operation and maintenance for five years of zero liquid discharge plant at Panipat refinery.
Hindustan Aeronautics: The company received an income tax refund order worth Rs 427.45 crore.
Easy Trip Planners: The company signed share purchase agreement with Nutana Aviation Capital IFSC to acquire 75% stake in the latter.
State Bank of India: The bank raised Rs 10,000 crore through its maiden infrastructure bond issuance at a coupon rate of 7.51%.
DFM Foods: The Directorate General of GST Intelligence alleged the Company has been misclassifying its products. The company refuted the allegations and would seek an appeal against the order.
Ajmera Realty & Infra India: The board approved continuation of Rajnikant S. Ajmera as the Chairman and Managing Director of the company beyond the age of 70 years.
SpiceJet: The company will hold its AGM on Dec. 26 to approve financial statements for the fiscal ended March 2022, and re-appointment of Ajay Singh as a director.
Mahindra & Mahindra Financial Services: Disbursements rose 75% year-on-year to Rs 4,500 crore, the company said in its November 2022 business update. Collection efficiency improved to 96% from 94% a year ago.
SGX Nifty Signals Positive Opening
Asian equities rose Monday amid gains in materials stocks and Chinese shares as traders bet on further reopening of the the world’s second-largest economy from Covid restrictions.
Oil advanced after OPEC+ left oil production steady, sanctions on Russian crude took effect and China’s loosening of Covid restrictions improved the outlook for demand.
The important events that are on investors' radars this week will be the Reserve Bank of India’s monetary policy announcement, foreign fund flows, the Gujarat election result, and other global cues.
Treasury yields edged higher during Asian trading hours after last week’s wild moves following the US jobs report. Government bond yields in Australia and New Zealand fell.
Back home, the S&P BSE Sensex and the Nifty 50 snapped their eight-day gaining streaks to end lower on Friday. The Sensex closed 415.69 points lower at 62,868.50, while the Nifty 50 shed 116.40 points to end at 18,696.10. Both the benchmarks scaled new lifetime highs earlier in the week.
The local currency, rupee depreciated by 10 paise to end at 81.32 on Friday, as against the Thursday closing of 81.22.
At 8:15 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- rose 0.20% to 18,862.