Stock Market Today: Sensex, Nifty Log Two-Day Gains; FPIs Stay Net Sellers

Overseas investors stay net sellers for fourth consecutive sessions on Wednesday.

Foreign portfolio investors sold stocks worth Rs 306.56 crore, according to provisional data from the National Stock Exchange.

Domestic institutional investors continues as buyers and purchased stocks worth Rs 721.24 crore, the NSE data showed.

Foreign institutions have been net buyers of Rs 96,280 crore worth of Indian equities so far in 2023, according to data from the National Securities Depository Ltd., updated till the previous trading day.

The yield on the 10-year bond closed 2 bps lower at 7.25% on Wednesday.

Source: Bloomberg

The local currency strengthened 3 paise to close at 83.32 against the U.S dollar on Wednesday.

It closed at 83.354, which was the lowest-ever close against the U.S. dollar on Tuesday.

Source: Bloomberg

Benchmark indices in India closed higher for the second consecutive session after witnessing volatility throughout the day as gains in information technology stocks offset the losses in banks.

The S&P BSE Sensex rose 87.09 points or 0.13% to 66,017.86, while the NSE Nifty 50 rose 28.45 or 0.14% to 19811.85. Sensex closed above the 66,000 level after five weeks.

The Nifty faces substantial resistance in the range of 19,800-19,900, and a breakthrough of these levels could trigger a swift upward movement, prompting an unwinding on the call side and potentially propelling the Nifty to the 20,000–20,200 zone, Ameya Ranadive CMT CFTe, Reseach Analyst at Choice Broking said.

Shrikant Chouhan, head of equity research at Kotak Securities Ltd said, "We are of the view that, as long as the index is trading above 19,700 to 65,650 the positive sentiment is likely to continue. Above which the market could rally till 19,850 to 66,150 further upside may also continue which could lift the index till 19,925 to 66,500."

Globally, the investor sentiment was dampened after minutes from Federal Reserve's October 31 meeting showed that officials remain cautious on future interest rates. Other Asian indices closed mixed today.

Here's how Indian benchmark indices fared on Wednesday:

Infosys Ltd., ITC Ltd., Reliance Industries Ltd., Axis Bank Ltd., and Tata Consultancy Services Ltd. were positively adding to the change in the Nifty 50 Index.

Whereas, HDFC Bank Ltd., Kotak Mahindra Bank Ltd., IndusInd Bank Ltd., ICICI Bank Ltd., and Mahindra & Mahindra Ltd. were negatively contributing to the change.

Sectorally, Nifty IT and Nifty Auto advanced the most, while Nifty metal and media indices declined on Wednesday.

The broader markets ended mixed. The BSE Midcap was up 0.33%, while the BSE Smallcap was 0.63% lower.

Twelve out of the 20 sectors compiled by BSE Ltd. advance. BSE Power rose the most.

The market breadth was skewed in the favour of sellers. About 2,049 stocks declined, 1,637 advanced, and 144 remained unchanged on the BSE.

In navigating the current market dynamics, a selective approach to stocks is advised, particularly in sectors such as Nifty metals, Nifty Infra, and Nifty Auto, where positive momentum is witnessed, Ameya Ranadive CMT CFTe, Research Analyst at Choice Broking said.

Shares of CG Power and Industrial Solutions Ltd. were locked in upper circuit of 20% after the company said that it has filed an application to set up a chip assembly and testing unit.

The company filed an application with the Ministry of Electronics and Information Technology for an outsourced semiconductor assembly and test facility and subsidy for the project under the modified scheme for the sector, according to its exchange filing

Subject to the project and the subsidy being approved, the company proposes to implement a joint venture in partnership with technology providers, it said.

Shares of the company rose to all-time high of Rs 469.35 apiece. That compares to a 0.2% decline in the NSE Nifty 50 Index.

The stock has risen 73.64% on a year-to-date basis. Total traded volume so far in the day stood at 16 times its 30-day average. The relative strength index was at 75, indicating that the stock may be overbought.

Out of six analysts tracking the company, four maintain a 'buy' rating and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 6.9%.

• 11.6 lakh shares changed hands in a large trade

• 0.1% equity changed hands at Rs 469.35 apiece

• Buyers and sellers not known immediately

Source: Bloomberg

Suzlon Energy shares fell as much as 2.04% to 38.50 apiece to hit lower circuit. It fell to trade 4.96% lower at Rs 37.35 apiece, as of 11:43 a.m. This compares to a 0.02% decline in the NSE Nifty 50 Index.

It has risen 252.36% on a year-to-date basis. Total traded volume so far in the day stood at 0.9 times its 30-day average. The relative strength index was at 56.93. Two analysts tracking the company maintain a 'buy' rating.

India's benchmark stock indices declined through midday as shares of financial services and metal companies weighed on them.

As of 12:28 p.m., the S&P BSE Sensex fell 247.77 points or 0.4% to 65682.34, while the NSE Nifty 50 fell 71.85 or 0.4% to 19,713.45.

Among sectoral indices, Nifty Realty and Nifty Bank declined the most while advanced the most, while Nifty Pharma and Nifty Energy advanced.

Despite a higher close on November 21, both Nifty and Bank Nifty are grappling with the challenge of surpassing the crucial 19800 zone, according to Ameya Ranadive, research analyst at Choice Broking.

"Meanwhile, the Bank Nifty is contending with a crucial hurdle at the 44000 level, which remains pivotal for a breakout," Ranadive said.

Infosys Ltd., Bajaj Finance Ltd., Larsen and Toubro Ltd., Titan Company Ltd., and Power Grid Corporation of India Ltd. were positively adding to the change in the Nifty 50 Index.

Whereas, Maruti Suzuki., IndusInd Bank Ltd., Kotak Mahindra Bank Ltd., ICICI Bank., and HDFC Bank Ltd. were negatively contributing to the change.

"In navigating the current market dynamics, a selective approach to stocks is advised, particularly in sectors such as Nifty metals, Nifty Infra, and Nifty Auto, where positive momentum is witnessed," he added.

The broader markets underperformed their larger peers. The BSE Midcap was down 0.10%, while the BSE Smallcap was 0.61% lower.

Eleven out of the 20 sectors compiled by BSE Ltd. declined. BSE Realty fell the most.

The market breadth was skewed in the favour of the seller. About 1,635 stocks rose, 1,913 declined, and 157 remained unchanged on the BSE.

The scrip rose as much as 2.4% to Rs 1,283.55 apiece, its lifetime high. It pared gains to trade 1.8% higher at Rs 1,274.85 apiece, as of 11:07 a.m. This compares to a 0.1% advance in the NSE Nifty 50 Index.

It has risen 18.62% on a year-to-date basis. Total traded volume so far in the day stood at 2.2 times its 30-day average. The relative strength index was at 70.57, indicating that the stock may be overbought.

Out of 40 analysts tracking the company, 30 maintain a 'buy' rating, 7 recommend a 'hold,' and 3 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 0.4%.

• Promoters sell 5.54% stake in company.

• Promoters holding reduces to 64.31% vs 69.76% earlier.

Source: Exchange filing

Shares of GMR Power and Urban Infra Ltd rose to hit its 5% upper circuit limit today as it acquired an additional 29.14% stake in subsidiary GMR Energy Ltd for $28.5 million from Power and Energy International (Mauritius) Ltd.

The current acquisition consolidates the existing stake of the company in GEL from about 57.76%, held by itself and its subsidiaries, to about 86.90%, an exchange filing by the company said.

With this, the shareholders agreement with Tenaga or Power and Energy International stands terminated thereby enabling full consolidation of revenues and earnings of GEL with the company, which till now was being done on an equity method or joint venture accounting, the exchange filing said.

The scrip rose as much as 5% to Rs. 42 apiece. It pared gains to trade 1.25% higher at Rs 40.50 apiece, as of 10:30 a.m. This compares to a 0.07% advance in the NSE Nifty 50 Index.

It has risen 75.05% on a year-to-date basis. Total traded volume so far in the day stood at 3.1 times its 30-day average. The relative strength index was at 64.5.

Shares of KEI Industries Ltd. fell over 3% after Goldman Sachs initiated a coverage on the scrip with a 'neutral' rating, stating that the company was well-placed for growth, but it was limited by capacity.

The second largest player in the cables and wires industry captures an 8% market share across the country. The growth in the electricity consumption in India, will aid the company as it is one of the few players with an Extra High Voltage or EHV cable offering, according to Goldman Sachs.

The brokerage expects increased focus on exports and offerings in the EHV segment to drive revenue growth higher than the industry. However, high capacity utilization is likely to limit its growth in the near-term despite a lower base after which growth could accelerate, as per the Goldman note.

It further expects KEI to increase its focus on the retail segment by growing its market share in house wires from 5% to high single digits over the next two to three years.

Key Risks: Upside

• Acceleration of global corporates’ China +1 Strategy:

While India has become a net exporter of cables and wires since 2020, it has taken away market share from China. The acceleration of global corporates’ China +1 strategy could benefit Indian cables and wires manufacturers, as per Glodman Sachs note. KEI has all the requisite approvals to export to markets such as U.S. and Europe.

• Unorganized to organized shift

The unorganized share in the overall cables and wires market has reduced from 43% before FY15 to 30% in FY22, due to technological innovations, increasing complexity in use cases, especially in sunrise industries like renewables, EV etc. and a longer reach, specially in rural, through branded players’ distribution network. Any improvement in this would benefit KEI as it is the second-largest branded player in the Indian cables and wires market, as per Goldman Sachs note.

• Improved Regulatory Compliance:

Currently, the regulations and technical standards in developed markets such as the U.S. and Europe are quite stringent, resulting in low levels of approvals by Indian players. Any elevation in the standards required in the domestic market would benefit players like KEI, as it has one of the highest number of certifications in the industry.

Key Risks: Downside

• High volatility in commodity prices:

Commodity price risk is built in as KEI aims to increase sales and needs to gauge raw material procurement as per the demand. This could potentially result in the company taking risks in periods of high volatility, as it will be unable to pass on the price fully to its dealers, as per the note.

• Significant slowdown in capex:

This could result in a reduction in overall demand, and as a result reduce the overall industry growth rate, according to the brokerage.

• Higher than expected new capacity addition:

Currently, most cables and wires players are operating at peak capacity utilization, and are setting up new capacities, which is expected to come onstream in the next 2-3 years. Any incremental new capacity addition announcements by industry players, may result in a situation of oversupply in the near term, affecting pricing and in turn, profitability, as per the Goldman Sachs note.

Shares of KEI Industries Ltd. fell as much as 3.51% to Rs 2,861.15 apiece, lowest level since Nov. 21. It was trading 3.03% lower at Rs 2870.25 apiece.

• Gets provisional certificate for project from NHAI.

• Provisional certificate for completion of 42.3 km in aggregate.

Source: Exchange Filing

The broader markets opened mixed; the S&P BSE MidCap Index was up 0.10%, whereas S&P BSE SmallCap Index was 0.10% lower.

Thirteen out of 20 sectors compiled by BSE advanced, while seven sectors declined. S&P BSE Consumer Durables rose the most.

The market breadth was skewed in the favour of the buyers. About 1,734 stocks rose, 923 declined, while 117 remained unchanged on the BSE.

• Nifty Energy top gainer

• Nifty Energy up 0.38% led by Bharat Petroleum, Coal India

• BPCL up 2.24%, Coal India up 0.57%

• Nifty Realty top loser, down 0.73%

• Nifty Realty losses led by The Phoenix Mills, down 2.64%

India's benchmark stock indices opened lower on Wednesday, after it snapped two days of gains on Tuesday.

At pre-open, the S&P BSE Sensex Index was down 130 points, or 0.20%, at 65,801.24 while the NSE Nifty 50 was 0.6 point or 0% higher at 19,784.

"Technical support is seen at 19,681, with victory for bulls above 19,889. Nifty's likely trading range is 19,100-19,800," said Prashanth Tapse, senior vice president (research), Mehta Equities Ltd.

For trend-following traders, now 19,670 and 65,550 could be a trend-decisive level, above which the market can continue to rally till 19,850 or 19,875 and 66,150 or 66,300, said Shrikant Chouhan – head equity research, Kotak Securities Ltd. "On the other hand, below 19,670 and 65,550 traders may prefer to exit long trading positions. Below this, the index may retest 19,600-19,500 and 65,450-65,200 levels," he added.

Asia markets traded mixed as the rally in U.S. benchmarks stalled after Federal Reserve minutes reiterated the central bank’s cautious approach. Nvidia Corp. slipped in late trading after investors were underwhelmed by its latest quarterly update.

Australian stocks were little changed, whereas South Korean and Chinese shares declined. Markets in Japan and Hong Kong were trading higher.

U.S. benchmarks lost steam on Tuesday after the S&P 500’s $6 trillion rally on the back of the artificial intelligence boom, corporate America’s resilience, and bets the Fed will pivot to rate cuts next year. The gains left the index about 5% away from reclaiming its all-time high.

• At pre-open, the S&P BSE Sensex Index was down 130 points, or 0.20%, at 65,801.24 while the NSE Nifty 50 was 0.6 point or 0% higher at 19,784.

Source: Bloomberg

• The yield on the 10-year bond opened flat at 7.27% on Wednesday.

Source: Bloomberg

• The local currency strengthened 4 paise to open at 83.31 against the U.S dollar on Wednesday.

• It closed at 83.354, which was the lowest-ever close against the U.S. dollar on Tuesday.

Source: Bloomberg

• Founder stake now free from any encumbrances

Source: Exchange Filing

• Submits application as mandated by RBI for conversion to CIC

• CIC stands for Core Investment Company

Source: Exchange Filing

• Ryzneuta is used to treat chemotherapy induced Neutropenia

Source: Exchange filing

• U.S. Dollar Index at 103.59

• U.S. 10-year bond yield at 4.40% on Tuesday

• Brent crude down 0.13% at $82.38 per barrel

• Nymex crude down 0.08% at $77.73 per barrel

• GIFT Nifty up 0.16% to 19,862.5 as of 8:10 a.m.

• Bitcoin down 2.09% to $36,071.06

• Ex/record date interim dividend: Crisil, Ingersoll-Rand, IPCA Laboratories, National Aluminium, Oil India, Pearl Global Industries, and T D Power Systems. 

• Move into short-term ASM framework: Manoj Vaibhav Gems N Jewellers, Tata Investment Corp, Techno Electric & Engineering Co.

• Move Out of short-term ASM framework: Orient Green Power

• Linc: Promoter Ekta Jalan bought 5,000 shares on Nov. 20. 

• Paisalo Digital: Promoter Equilibrated Venture Cflow bought 60,000 shares on Nov. 21. 

• IREDA: The IPO was subscribed 1.96 times on day one. The bids were led by non-institutional investors (2.73 times), portion reserved for employees (2.11 times), retail investors (1.97 times), and institutional investors (1.34 times).

• Tata Technologies: The IPO will open for bids on Wednesday. It will comprise a fresh issue of Rs 3,042 crore and an offer for sale of 6.08 crore shares. The price band is fixed at Rs 475–500 apiece. The company has raised Rs 791 crore from anchor investors.

• Gandhar Oil Refinery: The IPO will open for bids on Wednesday. It will comprise a fresh issue worth Rs 302 crore and an offer for the sale of 1.18 crore shares, worth up to Rs 198.69 crore. The price band is fixed at Rs 160–169 per share. The company has raised Rs 150.2 crore from anchor investors.

• Fedbank Financials: The IPO will open for bids on Wednesday. The offer has a fresh issue of Rs 600 crore, and the rest of it is an offer for sale. The price band is fixed at Rs 133–140 apiece. The company has raised Rs 330 crore from anchor investors.

• Flair Writing Industries: The IPO will open for bids on Wednesday. The price band is fixed at Rs 288–304 apiece. It will comprise a fresh issue of Rs 292 crore and an offer for sale of Rs 301 crore. The company has raised Rs 178 crore from anchor investors.

• Cressanda Solutions: Satyanarayan Jagannath Kabra bought 21.5 lakh shares (0.5%) at Rs 24 apiece. 

• Fiem Industries: Divya Mahesh Vaghela bought 75,489 shares (0.57%) at Rs 2012.79 apiece. 

• Reliance Industries: Chairman and managing director Mukesh Ambani said the company plans to invest Rs 20,000 crore in West Bengal in the next three years.

• TCS: The U.S. Supreme Court rejected the company’s petition to appeal an earlier court verdict. The company will make a $125 million provision in its third-quarter earnings related to a case involving Epic Systems Corp.

• Maruti Suzuki India: The company will consider the allotment of 1.23 crore equity shares of the company to Suzuki Motor Corp. on a preferential basis on Nov. 24.

• SBI: The government named Vinay M. Tonse as Managing Director until Nov. 30, 2025.

• Jio Financial Services: The company denied news reports that it is planning its maiden bond issue. It has no plans to raise money by way of bond issuance or otherwise, and the news circulated is "speculative", it said.

• Adani Enterprises: Unit Adani Defence Systems and Technologies signed a shareholders' agreement and share subscription agreement with Israel-based Elbit Systems. Pursuant to this, ESL will be subscribing to a 44% stake in Atharva Advanced Systems and Technologies.

• KEC International: The company bagged multiple new orders worth Rs 1,005 crore.

• Lupin: The pharma major received tentative U.S. FDA approval for its Dapagliflozin tablets. Dapagliflozin is a generic of Farxiga tablets.

• Texmaco Rail & Engineering: The board approved the opening of QIP on Nov 21. The floor price of QIP is set at Rs 135.9 apiece. 

• Life Insurance Corp: The company's has increased shareholding in Bank of Baroda. The current stake stands at 5.031%.

• Bharti Airtel: The Department of Telecommunications, Madhya Pradesh, imposed a penalty of Rs 1.31 lakh for an alleged violation of subscriber verification norms. The company's OneWeb also received a regulatory nod to launch its commercial satellite broadband services in the country.

• BPCL: The board will meet on Nov. 29 to consider the proposal of declaring an interim dividend for FY24 and fixing the record date.

• Aurobindo Pharma: The company's chief operating officer, Sanjeev I. Dani, died on Nov. 21.

• AstraZeneca Pharma: The Central Drugs Standard Control Organisation gave permission to import pharmaceutical formulations of new drugs and permission for the additional indication of Olaparib film-coated tablets.

• JK Tyre: The tyre manufacturer appointed Dr. Jorg Nohl as an additional director in the category of independent director for a term of five consecutive years w.e.f. Nov. 21.

• NHPC: The company resumed head-race tunnel works at the Teesta-VI project in Sikkim.

• Wipro: The IT Major announced a collaboration with NVIDIA to help healthcare companies accelerate the adoption of generative artificial intelligence through AI-driven strategies, products, and services.

• Power Finance Corporation: PFC Consulting has incorporated a wholly owned subsidiary as Ramakanali B. Panagarh.

• Genus Power: The company incorporated two wholly owned step-down subsidiaries, namely “Himachal Pradesh C Zone Smart Metering Pvt.” and “Garhwal Smart Metering Pvt.” on Nov. 21.

• Sical Logistics: The company's arm, DSPL Mining, received an order worth Rs 135 crore from the Coal India unit.

• JK Paper: The company received an income tax and penalty demand worth Rs 65.6 crore for AY 2020–21.

• Titan: The Competition Commission of India approved the acquisition of an additional stake in CaratLane Trading by Titan.

• IndusInd Bank: The bank denied the news report 'Hindujas raise Rs 8,000 crore by pledging IndusInd stake' factually incorrect. Promoter entities’ current pledge of 6.87% of the paid-up share capital of the bank has remained unchanged.

• GMR Power and Urban Infra: The company acquired an additional 29.14% stake in subsidiary GMR Energy for $28.5 million. It raised the total stake in the subsidiary to 86.90%.

• Auto Ancillaries Stocks: India is closing in on an agreement with Tesla that would allow the U.S. automaker to ship its electric cars to the country starting next year and set up a factory within two years, according to Bloomberg.

Asia markets traded mixed as the rally in U.S. benchmarks stalled after Federal Reserve minutes reiterated the central bank’s cautious approach. Nvidia Corp. slipped in late trading after investors were underwhelmed by its latest quarterly update.

Australian stocks were little changed, whereas South Korean and Chinese shares declined. Markets in Japan and Hong Kong were trading higher.

U.S. benchmarks lost steam on Tuesday after the S&P 500’s $6 trillion rally on the back of the artificial intelligence boom, corporate America’s resilience, and bets the Fed will pivot to rate cuts next year. The gains left the index about 5% away from reclaiming its all-time high.

The yield on the 10-year U.S. bond was trading at 4.40%, and Bitcoin was below $37,000. Brent crude was above $82 a barrel, whereas WTI crude was above $77 a barrel.

The GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 0.16% to 19,862.5 as of 8:10 a.m.

India's benchmark stock indices advanced on Tuesday, snapping two days of decline as Reliance Industries and HDFC Bank led.

Intraday, the Nifty Midcap 150 and Smallcap 250 hit lifetime highs. Among sectoral indices, realty, metals, and consumer durables advanced the most, while fast-moving consumer goods and public sector banks faced pressure.

Overseas investors remained net sellers of Indian equities for the third consecutive session. Foreign portfolio investors offloaded stocks worth Rs 455.6 crore, while domestic institutional investors continued to remain buyers and mopped up stocks worth Rs 721.5 crore, the NSE data showed.

The Indian rupee ended flat at around 83.35, which was the lowest-ever close against the U.S. dollar on Tuesday.