Share Market Today: Sensex, Nifty Snap Two-Day Losing Streak; FPIs Stay Net Sellers

Overseas Investors in Indian equities began the week on Dec. 19 as net sellers for the third straight day.

Foreign portfolio investors off loaded equities worth Rs 538.10 crore, according to data from the National Stock Exchange.

On the other hand, domestic institutional investors continued their buying spree and remained net buyers for the ninth staright day. As per NSE, they bought equities worth Rs 687.38 crore.

Institutions net bought Rs 6,682.23 crore worth of equities in December so far, and net sold Rs 8,769.66 crore worth of Indian equities till date in 2022.

The yield on the 10-year bond rose by 2 bps to 7.30% at close on Monday.

Source: Bloomberg

• The Indian rupee gained against the U.S. dollar at close, on Monday.

• The local currency closed at 82.70, about 16 paise or 0.20% higher.

• It closed at 82.87 on Friday.

Source: Bloomberg

The Indian benchmark indices snapped the two-day losing streak and recouped the previous sessions' losses to close higher on Monday.

The S&P BSE Sensex ended up by 469 points or 0.76% at 61,806.19 while the NSE Nifty 50 was 152 points or 0.83% higher at 18,420.45.

Adani Ports and SEZ Ltd., Adani Enterprises Ltd., Mahindra and Mahindra Ltd., Eicher Motors Ltd. and Power Grid Corp of India Ltd. were the top gainers amongst the NSE Nifty 50 constituents.

Whereas, TCS Ltd., ONGC Ltd., Tata Motors Ltd., Infosys and Sun Pharma Ltd., were the top laggards in the gauge.

The broader market indices underperformed their larger peers; S&P BSE MidCap was up by 0.67%, whereas S&P BSE SmallCap was higher by 0.29%.

Eighteen out of the 20 indices compiled by the BSE advances in trade, while only S&P BSE Information Technology and S&P BSE Techk declined.

The market breadth was skewed in favour of the bulls. About 2,135 rose, 1,478 declined, and 168 remained unchanged on the BSE.

• UTI Asset Management Co. has clarified a news item that claimed Tata Group was in the final negotiation stage to buy a majority stake in the company.

• In an exchange filing, the company said that it "is not part of any such negotiation".

• The company also said that it has not taken any decision on the transaction as mentioned in the news item.

Source: Exchange filing

Shares of Easy Trip Planners Ltd. rose 1.62% in trade on Monday after one million shares changed hands in a bunch trade.

Of the four analysts tracking the stock, two have maintained a 'buy' rating, one suggested 'hold' and one is of the view to 'sell' the stock.

Source: Bloomberg, Exchange filing

Shares of Sundaram Finance Ltd. rose 3.60% in trade on Monday. It gained the most in two months since Oct. 19.

The scrip was trading at 1.1 times its 30-day average volume. Of the 12 analysts tracking the stock, seven have maintained a 'buy' rating, four suggested 'hold' and one is of the view to 'sell' the stock.

Source: Bloomberg, Exchange filing

Shares of New India Assurance Co. rose 11.61% in trade on Monday. Trading volume was 6.1 times the 30-day average.

The relative strength index at 79 implied that the stock might be overbought.

Of the five analysts tracking the stock, one maintains a 'hold' rating, while four suggested to 'sell' the stock.

Source: Bloomberg, Exchange filing

• Reliance Jio adds 14,14,006; Bharti Airtel adds 8,05,109; and Vodafone Idea loses 35,09,666 subscribers in October.

• Private telecom service providers hold a 90.24% market share of the wireless subscriptions, whereas BSNL and MTNL capture 9.76% of the market.

• Except Mumbai, Assam, Delhi, Odisha, Punjab, Himachal Pradesh, Bihar, and Karnataka service areas, all other service areas have shown decline rate in their wireless subscribers during the month of October.

Source: TRAI Press Release

• ICRA has revised its outlook on the sector to 'positive' from 'stable'

• Net non-performing assets of banks likely to reduce by 40 basis points year-on-year to 1.3% by March 2023

• Incremental credit growth of 11-11.6% expected in in FY2024 against deposit growth of 7.3-7.8%

• Inability of banks to adequately pass on higher deposit costs could be a key risk factor

Source: ICRA

Shares of Britannia Industries Ltd. were up 1.22% in trade on Monday.

The stock of the FMCG player, rose to 1.38% in during the day and hit a new all-time high of Rs 4,506.

The relative strength index at 75 implies that the stock might be overbought

Of the 41 analysts tracking the company, 26 maintain a 'buy' rating, 12 suggest 'hold' and three recommend to 'sell' the stock. The return potential of the stock implies a downside of 0.7% in the next 12 months.

Source: Bloomberg, Exchange filing

The Indian benchmark indices pared their opening losses and continued trading in green on Monday.

As of 12:20 pm, The S&P BSE Sensex was up 349 points or 0.57% at 61,686.80 while the NSE Nifty 50 was 109 points or 0.60% higher at 18,377.85.

Eicher Motors Ltd., Mahindra and Mahindra Ltd., Adani Ports and SEZ Ltd., Dr. Reddy's Laboratories Ltd. and Bajaj Finserv Ltd. were the top gainers amongst the NSE Nifty 50 constituents.

Whereas, Tata Motors Ltd., BPCL Ltd., TCS Ltd., Infosys Ltd. and IndusInd Bank Ltd., were the top laggards in the gauge.

The broader market indices; S&P BSE MidCap was up by 0.27%, whereas S&P BSE SmallCap was higher by 0.36%.

Eighteen out of the 20 indices compiled by the BSE advances in trade, while only S&P BSE Information Technology and S&P BSE Techk declined.

The market breadth was skewed in favour of the bulls. About 2,041 rose, 1,424 declined, and 180 remained unchanged on the BSE.

Shares of Alembic Pharmaceuticals Ltd. declined 1.01% in trade on Monday.

The U.S. FDA has issued five procedural observations after an inspection of the Alembic Pharmaceuticals’ solid oral formulation facility located at Jarod, Gujarat.

Company is preparing the response to the observations, which will be submitted to the U.S. FDA within stipulated period.

The stock was trading at 2.1 times its 30-day average volume.

Of the 19 analysts tracking the company, six maintain a 'buy', six suggest 'hold' and seven recommend to 'sell' the stock. The return potential of the stock implies a upside of 13.5% in the next 12 months.

Source: Exchange filing

Shares of Dilip Buildcon rose by 4.69%, after company received multiple orders from the National Highways Authority of lndia for new HAM projects in the state of Karnataka, Chhattisgarh and Telangana.

The company received new order worth Rs 1,647 crore for four-laning of Karimnagar Warangal Section of NH-563 in Telangana.

According to the exchange filings the company also received an order worth Rs 1,955 crore for construction of four lane Urga-Pathalgaon section of NH-130A under Bharatmala Pariyojana' in Chhattisgarh.

It received another order worth Rs 1,589 crore for the development of six-lane Maradgi S Andola to Baswantpur (Package -III of Akkalkot-KNT/TS Border) in the state of Karnataka.

The stock gained as much as 5.95% on Monday. The total traded quantity is 6.6 times the 30-day average volume.

Of the seven analysts tracking the company, four maintain a 'buy' and three suggest a 'hold' on the stock. The return potential of the stock implies a upside of 26.5% in the next 12 months

Source: Bloomberg, Exchange Filings

Shares of GMR Airports Infrastructure Ltd., rose 2.05% in trade on Monday. It gained 2.17%, the most since Nov. 30.

The company announced in an exchange filing on Friday that its step-down subsidiary, GMR Airports International BV received Rs 1,389.90 crore against the sale of shares in GMR Megawide Cebu Airport Corporation and the issuance of exchangeable notes to Aboitiz InfraCapital Inc.

Of the three analysts tracking the stock, two have maintained a 'buy' rating, and one is of the view to 'hold' the stock.

Source: Bloomberg, Exchange filing

Shares of Bajaj Consumer Care 0.71% in trade on Monday.

The company has intimated the exchanges in a filing that they have commenced the plan to buy back 33.7 lakh shares at a price of up to Rs 240 each.

The proposal is for an aggregate amount of up to Rs 80.89 crore.

The scrip was trading at 3.9 times its 30-day average volume. Of the 12 analysts tracking the stock, six have maintained a 'buy' rating, four suggested 'hold' and two are of the view to 'sell' the stock.

Source: Bloomberg, Exchange filing

Shares of Indian sugar companies jumped after GST council on Saturday slashed tax rates on ethyl alcohol supplied to refineries for blending with gasoline

Additionally, the hopes of a hike in the sugar export quota, as per a PTI report, keep them buoyant.

Ugar Sugar Works Ltd. and Kothari Sugars and Chemicals, hit a 52-week high of Rs 115.85 and Rs 52.45, respectively.

Other sugar stocks that were up in trade included, Bajaj Hindustan Sugar Ltd., Dalmia Bharat Sugars and Industries Ltd. and Dhampur Sugar Mills Ltd.

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

Shares of Glenmark Pharmaceuticals Ltd. were up 0.26% in trade on Monday.

The drugmaker received ANDA approval for Nicardipine Hydrochloride Capsules, 20 mg and 30 mg, the generic version of Cardene®1 Capsules, 20 mg and 30 mg, of Chiesi USA, Inc.

Of the 19 analysts tracking the company, 12 maintains 'buy', six suggest 'hold' and one recommends 'sell'. The return potential of the stock implies a upside of 16.5% in the next 12 months.

Source: Bloomberg, Exchange filing

Shares of IndiaMart InterMESH rose 3.08% on Monday.

The scrip gained as much as 4.51%, the most since Oct 27. The total traded quantity is 4.5 times the 30-day average volume.

Of the 16 analysts tracking the company, 12 maintains 'buy', two suggests 'hold' and two recommends 'sell'. The return potential of the stock implies a upside of 18.5% in the next 12 months

Source: Bloomberg

NSE Nifty IT Index declined by 0.57%, as of 9:55 am on Monday.

Eight out of the 10 constituents of the index declines while only, HCL Technologies Ltd. and Tech Mahindra Ltd. advanced.

Persistent Systems Ltd., Infosys Ltd. and Coforge Ltd. declined by more than 1%.

Source: NSE

Shares of UTI AMC Co. rose 7.83% at Rs 831.65 in early trade on Monday after a report on Tata Group getting closer to a deal with the company.

As per a report by the Economic Times, Tata Group is in final negotiations to buy a majority stake in India's eighth-biggest mutual fund, UTI Asset Management Co., from four state-owned financial entities. A final agreement is being sought on the deal valuation.

• Shares of Bajaj Hindusthan Sugar rose 9.91% in trade and the scrip was locked in an upper circuit at Rs 18.85 on Monday.

• The company had earlier on Dec. 2 announced in an exchange filing that they have cleared entire overdue towards term loan installments till September 2022.

• Company also settled their term loan interests till November 2022 and optionally convertible debentures coupon, payable for FY22 to all the lenders.

  Source: Bloomberg, Exchange filing

The Indian benchmark indices opened on a volatile note on Monday after falling for two consecutive opening in the previous trading sessions.

The S&P BSE Sensex was up by 68 points or 0.11% at 61,405.80 while the NSE Nifty 50 was 19points or 0.1% higher at 18,288.10.

Power Grid Corp of India Ltd., Nestle India Ltd., Coal India Ltd., Hindalco Industries Ltd. and Bharti Airtel Ltd. were the top gainers amongst the NSE Nifty 50 constituents.

Whereas, Infosys Ltd., Sun Pharma Ltd., Tata Motors Ltd., ONGC and UPL Ltd., were the top laggards in the gauge.

The broader market indices; S&P BSE MidCap was down by 0.30%, whereas S&P BSE SmallCap was lower by 0.02%.

Twelve out of the 20 indices compiled by the BSE declined in trade, while eight advanced.

The market breadth was skewed in favour of the bulls. About 1,631 rose, 1,112 declined, and 163 remained unchanged on the BSE.

• The yield on the 10-year bond opened flat on Monday as it rose 0.9 bps to 7.287%.

• It closed at 7.278% on Friday.

Source: Bloomberg

• The Indian rupee gained against the U.S. dollar at open, on Monday.

• The local currency opened at 82.80, about 7 paise or 0.09% higher.

• It closed at 82.87 on Friday.

Source: Bloomberg

• Secures orders for transmission & distribution projects in India, East Asia Pacific and SAARC.

• 220 kV GIS substation for a refinery project in India; 500 kV transmission line in Thailand; 132 kV transmission line and associated substations in Nepal.

• Secures a large order for a 500 MW Solar PV project in India.

Source: Exchange filing

The S&P BSE Sensex Index has added Tata Motors Ltd. as the replacement of Dr. Reddy’s Laboratories effective Monday, Dec. 19.

According to a statement by Asia Index Pvt., a joint venture between S&P Dow Jones Indices LLC and BSE Ltd. dated Nov 18, generic drugmaker Dr. Reddy’s Laboratories exclusion from the S&P BSE Sensex Index was notified.

The reshuffle also encompasses changes in S&P BSE 100 and S&P BSE Sensex Next 50 indices.

Both S&P BSE 100 and S&P BSE Sensex Next 50 indices will exclude Adani Total Gas and Hindustan Petroleum, while Adani Power and Indian Hotels will be included.

• U.S. Dollar Index at 104.61

• U.S. 10-year bond yield at 3.51% on Friday

• Brent crude up 0.76% to $79.64 per barrel

• Nymex crude at $74.86 per barrel

• SGX Nifty higher by 0.26% to 18,366.5 as of 8:10 a.m.

• Bitcoin down 0.19% to $16,785.39

• KFin Technologies: The initial public offering will open on Dec. 19 and continue till Dec. 21. The issue comprises solely of an offer for sale, where promoters will offload crore 4.09 shares worth Rs 1,500 crore, comprising 24.46% of the post-offer equity capital in the IPO. The price band for the issue has been pegged at Rs 347-366 per share.

• Anzen India Energy Yield Plus Trust: Metro Family Holdings bought 10 lakh shares, Axis Bank sold 10 lakh shares at Rs 101.2 apiece.

• GMM Pfaudler: Plutus Wealth Management LLP bought 9.5 lakh shares (2.11%) at Rs 1691.44 apiece, USSL as trustee of Universities Superannuation Scheme bought 7.3 lakh shares (1.62%) at Rs 1700 apiece, Integrated Core Strategies (Asia) 3.5 lakh shares (0.78%) at Rs 1,700 apiece, Indus Capital Advisors (UK) LLP a/c Indus India Fund (Mauritius) bought 3.08 lakh shares (0.69%) at Rs 1,690.96 apiece, Aditya Birla Sun Life Mutual Fund 9.71 lakh shares (2.16%) at Rs 1,700 apiece, Pfaudler sold 67.86 lakh shares (15.09%) at Rs 1,700.14 apiece, Pfaudler sold 10 lakh shares (2.22%) at Rs 1,702.87.

• Suryoday Small Finance Bank: Baskar Babu Ramachandran sold 50 lakh shares (4.71%) at Rs 110.88 apiece, MS Param Value Investments bought 15 lakh shares (1.41%) at Rs 111.87 apiece.

• Yes Bank: The private lender has concluded assignment of Rs 48,000 crore worth of stressed assets to JC Flowers Asset Reconstruction Co.

• Sun Pharmaceuticals: The company received a warning letter from USFDA for the Halol facility, which is under import alert by the regulator, summarising violations with respect to Current Good Manufacturing Practice regulations.

• GMR Airports Infrastructure: GMR Airports International BV, a step-down subsidiary of the company received Rs 1,389.90 crore against the sale of shares in GMR Megawide Cebu Airport Corporation and the issuance of exchangeable notes to Aboitiz InfraCapital Inc.

• Shilpa Medicare: The company launched Capecitabine 1000 MG dispersible tablet with faster dispersion technology.

• Tata Motors: Bengaluru Metropolitan Transport Corporation signed a definitive agreement with the company’s subsidiary TML Smart City Mobility Solutions for operating 921 electric buses in Bengaluru.

• The Phoenix Mills: The company completed the acquisition of a 7.2-acre land parcel in Surat, Gujarat for Rs 510 crore.

• Dilip Buildcon: The company received a new order worth Rs 1,647 crore for four-laning of Karimnagar Warangal Section of NH-563 in Telangana. The company also received an order worth Rs 1,955 crore for construction of four lane Urga-Pathalgaon section of NH-130A under Bharatmala Pariyojana' in Chhattisgarh. It received another order worth Rs 1,589 crore for the development of six-lane Maradgi S Andola to Baswantpur (Package -III of Akkalkot-KNT/TS Border) in the state of Karnataka.

• Tech Mahindra: The company will sell 100% stake in subsidiary Dynacommerce Holdings to step down subsidiary Comviva Netherlands BV for €6.6 million.

• HDFC Bank: The board will meet on Jan. 14 to consider and approve the financial results for quarter ended Dec. 31, 2022.

Asian stocks followed the Wall Street lower Monday as the Federal Reserve’s resolve to keep raising rates and a wave of Covid in Beijing damped sentiment for riskier assets. 

Shares dropped in Japan, South Korea, and Australia. Equity futures pointed to a slight decline in Hong Kong and US contracts were marginally higher.

The U.S. markets are witnessing a selloff after the hawkish commentary by the Fed even as it slowed the pace of rate hikes amid signs of easing U.S. inflation. The European Central Bank and Bank of England also maintained a similar stance while increasing rates last week.

The S&P 500 fell 1.1% on Friday, while the Nasdaq 100 declined 0.9%.

On the other hand, the Indian benchmarks fell for the second straight week and closed lower on Friday. The Sensex ended 461 points, or 0.75%, lower, at 61,337.81, while the Nifty 50 was down 146 points, or 0.79%, at 18,266.

Meanwhile, foreign portfolio investors continued to buy domestic equities in December. Having invested more than Rs 36,200 crore in November, they net injected Rs 10,555 crore into Indian stocks so far this month.

Rupee closed 0.14% lower against the U.S. dollar at 82.87 on Friday, compared to Friday’s close of 82.75.

At 8:10 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- was up at 0.26% to 18,366.5.