Share Market Today: Sensex, Nifty Decline After Two Days Of Gains; Titan, M&M Top Losers
Sensex closed 0.37% lower at 61,750.60 . Nifty 50 fell by similar magnitude to close at 18,343.90.
KEY HIGHLIGHTS
10-Year Bond Yield Rises
Yield on the 10-year bond rose 1bps to close at 7.28% on Thursday.
Source: Bloomberg
Rupee Depreciates Against The U.S. Dollar
Indian currency depreciated 33 paise against the greenback to close at 81.63. It fell to as much as 81.68 during the day after opening at 81.66.
Source: Bloomberg
Closing Bell
Indian stock benchmarks closed lower on Thursday, dragged by utilities, consumer durables, auto stocks.
Sensex closed 0.37% lower at 61,750.60 . Nifty 50 fell by similar magnitude to close at 18,343.90.
Among Nifty 50 constituents, 13 stocks rose and 37 declined.
Tata Consumers, Adani Enterprises, Larsen & Toubro, Power Grid Corporation and HDFC Life Insurance were the top gainers on Nifty 50.
While, Titan Company, Mahindra & Mahindra, Tata Motors, Eicher Motors and Apollo Hospitals Enterprise were the top laggards.
The broader indices outperformed their larger peers with mid-cap and small-cap losing 0.33% and 0.27%, respectively.
Sixteen out of the 19 sectoral measures complied by the BSE declined, with BSE utilities, auto, consumer durables and power losing the most over 1%.
The market breadth is skewed in the favour of bears. About 1,518 stocks rose, 1,990 fell and 108 remained unchanged.
Ahluwalia Contracts Gain After Order Win
Shares of Ahluwalia Contracts (India) gained as much as 4% after it secured orders worth Rs 530.05 crore.
Source: Bloomberg, exchange filing.
Equitas SFB Surge On RBI Nod For DSP Investment's Stake Purchase
Shares of Equitas Small Finance jumped as much as 12.3% after the Reserve Bank of India allowed DSP Investment Managers to acquire 9.99% stake in the lender.
The acquisition of shares will be concluded after Equitas Holdings merges with Equitas Small Finance Bank.
Of the 15 analysts tracking the company, 14 maintain 'buy', one suggests 'hold' and none recommend 'sell'. The return potential of the stock implies a upside of 19.7%.
Source: Bloomberg, Exchange notice
UPL Gains Post Agreement To Buy 20% Stake In Seedcorp
UPL shares rose 1.11% after the company signed an agreement to acquire a 20% stake in Brazilian soy genetics company Seedcorp Ho for $42.33 million (Rs 344.79 crore).
UPL says the acquisition will help it “offer a complete package of solutions to farmers.”
The transaction will likely get completed by January.
Of the 29 analysts tracking the company, 27 maintain 'buy', one suggests 'hold' and one recommends 'sell'. The return potential of the stock implies a upside of 32.6%.
Source: Exchange filing
European Markets Open Largely Higher
Meta Appoints Sandhya Devanathan As India Head And Vice President
Meta has announced the appointment of Sandhya Devanathan as the vice president of India operations.
Devanathan joined Meta in 2016 and helped build out the Singapore and Vietnam operations. She moved to lead gaming in APAC in 2020.
Devanathan will take charge with effect from January 1, 2023 and will report to Dan Neary, Vice President, Meta APAC.
Source: Company statement
Mold-Tek Gains On Order Win
Shares of Mold-Tek Packaging advanced after the company received an order from Grasim Industries- Birla Paints Division to supply packing materials and set up a facility.
The stock went up 2.67% on Thursday. Of the nine analysts tracking the company, five maintain 'buy', four suggest 'hold' and none recommend 'sell'. The return potential of the stock implies an upside of 13.2%.
The company will invest Rs 30 crore to set up the new co-located facility which is expected to be operational by end of calendar year 2025.
The company also proposed to set up a food and FMCG container manufacturing facilities in Cheyyar in Tamil Nadu state to cater to the demand.
Source: Bloomberg, Exchange filings
Midday Market Update
India's stock benchmarks pared losses, as gains in capital goods and industrials stocks offset some of the losses of consumer durables, auto and metal stocks.
Sensex was trading 0.12% lower at 61,869.90 as of 12:30 p.m. Nifty 50 declined 0.15% at 18,381.65.
Among Nifty 50 constituents, 17 stocks rose and 33 declined.
Larsen & Toubro, Tata Consumer Products, HDFC Life Insurance, UPL and ICICI Bank were the top gainers on Nifty 50.
Meanwhile, Titan Company, Tata Motors, Apollo Hospitals Enterprise, Hindalco Industries and Eicher Motors were the top laggards.
The broader indices underperformed their larger peers with mid-cap and small-cap losing 0.23% and 0.21%, respectively.
Thirteen out of the 19 sectoral measures complied by the BSE declined, with BSE Consumer Durables losing the most over 1%.
The market breadth is skewed in the favour of bears. About 1,478 stocks rose, 1,884 fell and 130 remained unchanged.
Tata Motors Gets Order For 1,000 Buses From Haryana Roadways
Tata Motors has received an order from Haryana Roadways to supply 1,000 52-seater, BS6 diesel buses in a phased manner.
The e-bidding process was carried out through the government tender process.
Source: Exchange filing
Timken India Rises Most In Five Months
Shares of Timken India rose 8.17%, the most in five months after the company said it will set up a new manufacturing facility in Gujarat state.
Total traded quantity is 22.4 times the 30-day average
Of the seven analysts tracking the company, five maintain 'buy', one suggests 'hold' and one recommends 'sell'. The return potential of the stock implies a downside of 6.2%.
The company will invest Rs 600 crores, financed through internal accruals. The new manufacturing facility will make spherical and cylindrical roller bearings and more components.
Source: Bloomberg, Exchange filings
FSN E-Commerce Extends Losses For Third Day
Shares of FSN E-Commerce Ventures Ltd. declined for the third day in a row as selling pressure continued.
The stock has declined around 19.1% in three sessions now. On Thursday, it fell as much as 7.3% to Rs 171 apiece. It was the among the most traded stocks by value and volume. Its trading volume was over 7.7 times the three-month full-day average.
The slide comes days after the stock turned ex-bonus and the pre-IPO investors' lock-in period expired.
On Thursday, as many as 5.7 crore shares, equalling 2% of the equity, changed hands in five large trades on the BSE, according to Bloomberg data.
Around 1.1% equity of the company had also changed hands on Wednesday.
Source: Bloomberg
Tata Power Shares Fall On Tie-Up With UBI
Shares of Tata Power declined 1.18% after its unit Tata Power Solar Systems tied up with Union Bank of India to help the MSME sector switch to solar solutions.
The aim of this partnership is to improve access to green energy and save on the cost of electricity, making MSMEs more profitable.
Of the 24 analysts tracking the company, 10 maintain 'buy', four suggest 'hold' and ten recommend 'sell'. The return potential of the stock implies an upside of 6.1%.
Source: Bloomberg, Exchange filings
Tata Motors Declines After JLR CEO Resigns
Shares of Tata Motors fell after Thierry Bollore, the chief executive officer of the automaker's British luxury unit Jaguar Land Rover, resigned just two years after he took the role.
The stock fell about 2.77% on Thursday. It is now down 1.98%.
Of the 33 analysts tracking the company, 23 maintain 'buy', seven suggest 'hold' and three recommend 'sell'. The return potential of the stock implies an upside of 17.2%.
Bollore, who formerly led Renault SA and was appointed to the top job at Jaguar Land Rover in September 2020, cited personal reasons for his departure. Adrian Mardell, a 32-year JLR veteran, will take over as interim CEO, Tata Motors said.
Source: Bloomberg, Exchange filings
Paytm Declines On SoftBank Stake Sale
Shares of One97 Communications Ltd. plunged during the opening trade on Thursday after the Japanese venture capital firm SoftBank Group likely sold 4.5% of its stake in the company.
The stock slumped as much as 9.98% intraday-the most since July 29. As of 10:01 a.m. it had fallen 9.34%. This marks the third day of decline for the stock.
Shares of One97, the owner of Paytm, were under pressure ahead of the one year anchor lock-in expiry.
The pre-IPO investors' lock-in period expired on Nov. 15.
SoftBank plans to sell 2.9 crore shares in Paytm's parent company One97 Communications at an offer price of Rs 555 to Rs 601.45 apiece, according to terms of the deal reviewed by BQ Prime.
At the lower end, the transaction will fetch the Masayoshi Son-led firm $200 million (about Rs 1,629 crore).
In 2017, SoftBank invested at least $1.4 billion in Paytm. In August this year, it marked down its investment in the firm by $400 million.
Source: Bloomberg
R Systems Surges As Blackstone Agrees To Buy Majority Stake
Shares of R Systems International Ltd. surged after Blackstone agreed to purchase a majority stake from its founder and promoters.
The stock advanced as much as 20% during early trade. It has now gained 17.10%. Total traded volume is 189.9 times the 30-day average.
The price crossed below the 50 day simple moving average which indicates a potential downward price momentum.
Blackstone said it will buy a 52% stake in R Systems from founder Satinder Singh Rekhi and other promoters. The company will acquire the stake for Rs 245 per piece.
Blackstone also launched an open offer for 48.33% stake or 5.71 crore shares at a price of Rs 246 per share in the IT company. Blackstone is set to spend as much as Rs 1,406 crore on the open offer.
Source: Bloomberg, Exchange filing, Press release
Opening Bell
Indian stock benchmarks opened lower on Thursday led by broad-based declines amid investor concerns on a potential policy tightening in the U.S.
Sensex opened about 0.27% lower to open at 61,812.36. Nifty 50 fell by a similar magnitude to open at 18,358.70.
Power Grid Corporation Of India, Larsen & Toubro, Cipla, Adani Ports and Adani Enterprises were the top gainers on Nifty 50, while Tata Motors, Hindalco Industries, Tech Mahindra, HCL Technologies and Tata Steel were the top laggards.
The broader indices outperformed their larger peers with mid-cap and small-cap losing 0.16% and 0.07%, respectively. While large-cap almost mirrored its larger peers by losing 0.21%.
Ten out of the 19 sectoral measures complied by BSE declined, with BSE Metal losing the most over 1%.
The market breadth is skewed in the favour of bulls. About 1,338 stocks rose, 1069 fell and 102 remained unchanged.
Blackstone Makes Open Offer For 48.33% Stake In R Systems
Blackstone has made an open offer to acquire a 48.33% stake or 5.71 crore shares in R Systems.
Open offer price set at Rs 246 per share.
Blackstone to spend as much as Rs 1,406 crore on the open offer.
Source: Exchange filing
10-Year Bond Yield Falls
Yield on the 10-year bond fell 3 bps to 7.24% in opening trade on Thursday.
Source: Bloomberg
Rupee Slides Against U.S Dollar
Indian currency depreciated by 35 paise to 81.66 at the open against the greenback on Thursday. It closed at 81.30 on Wednesday.
Source: Bloomberg
Trade Setup For Thursday
Blackstone To Purchase Majority Stake In IT services Firm R Systems
Blackstone to purchase a 52% stake in R Systems from founder Satinder Singh Rekhi and other promoters.
Blackstone will acquire the stake for Rs 245 per share.
Blackstone will also launch a conditional delisting offer, at Rs 246 per share.
The company is headquartered in the U.S., but listed on the NSE and BSE.
Source: Press release
Global Cues
U.S. Dollar Index at 106.28
U.S. 10-year bond yield at 3.70% on Wednesday
Brent crude down 1.07% to $92.86 per barrel
Nymex crude at $85.35 per barrel
SGX Nifty down 0.36% to 18,413 as of 6:30 a.m.
Bitcoin up 0.95% to $16,688.18
In Focus: Offerings
Keystone Realtors: The IPO was subscribed 2.01 times on the final day. The QIB portion was subscribed 3.84 times. Non-institutional investors’ portion was subscribed 3.03 times, while retail investors subscribed 53% of their basket.
In Focus: Bulk Deals
Bikaji Foods International: Goldman Sachs Funds - Goldman Sachs India Equity Portfolio bought 17.45 lakh shares (0.7%) at Rs 324.5 apiece.
CMS Info Systems: Smallcap World Fund Inc. bought 30.01 lakh shares (1.95%), Sion Investment Holdings sold 30.01 lakh shares (1.95%) at Rs 333.05 apiece.
Hindustan Copper Company: IDBI Trusteeship Services sold 1.3 crore (0.86%) at Rs 15.57 apiece.
Global Health: Nomura India Investment Fund Mother Fund Account bought 15 lakh shares (0.56%) at Rs 414.57 apiece.
FSN E-Commerce Ventures: Lighthouse India Fund III sold 3 crore shares (1.05%) at Rs 175.13 apiece.
Stocks To Watch
Tata Power/Union Bank of India: Tata Power Solar Systems, a subsidiary of Tata Power, has tied up with Union Bank of India to facilitate solar rooftop adoption in MSME sector.
Hindustan Zinc: The company will pay an interim dividend of Rs 15.50 per share, amounting to Rs 6,549.24 crore.
Ircon International: The company emerged as the lowest bidder for construction of balance work of Bahuti Canal Project by Water Resource Department, Madhya Pradesh government on turnkey basis.
Asian Paints: The company has entered into technology and other allied agreements with Kellogg Brown & Root for manufacturing of Vinyl Acetate Monomer in India.
Tata Motors: Thierry Bollor, the chief executive officer of Jaguar Land Rover and independent director of Tata Motors, has resigned, effective Dec. 31. Adrian Mardell will take over as interim CEO at Jaguar Land Rover.
Aurobindo Pharma: The U.S. FDA inspection of the company’s API non-antibiotic manufacturing facility in Pydibhimavaram, Srikakulam District, Andhra Pradesh has been completed with the reception of an establishment inspection report.
One 97 Communications: SoftBank is planning to sell 29 million shares, comprising 4.5% stake, at Rs 555-601.45 each in a block deal.
Gujarat Themis Biosyn: The company’s board will convene on Nov. 21 to consider a dividend for the current fiscal.
Balrampur Chini Mills: The company commenced commercial production of industrial alcohol at its new distillery in the Maizapur Unit, with a capacity of 320 KLPD.
SGX Nifty Suggest Losses For Sensex Nifty
Stocks in Asia climbed Thursday, and Treasuries held on to a rally that inverted the US yield curve by the most in four decades.
At 8 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- fell 0.42% to 18,402.
Crude slipped 2.9% as supply from pipelines carrying Russian oil to Europe resumed while demand concerns lingered. Gold changed little, while Bitcoin fell 2.3% to dip below the $16,500-level.
Indian benchmarks Sensex and Nifty closed with minor gains on Wednesday, aided by advances in banking, capital goods and industrials stocks.
Rupee fell sharply against the U.S. dollar a day after a strong close on the back of disappointing trade data and forex outflows.