Stock Market Today: Sensex, Nifty Close Flat; FPIs Turn Net Buyers

Overseas investors turn net buyers on Thursday after being net sellers for four consecutive sessions.

Foreign portfolio investors bought stocks worth Rs 255.53 crore, according to provisional data from the National Stock Exchange.

Domestic institutional investors continued as buyers and purchased stocks worth Rs 457.39 crore, the NSE data showed.

Foreign institutions have been net buyers of Rs 94,916 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 flat at 7.26% on Thursday.

Source: Bloomberg

• The local currency weakened 2 paise to close at 83.34 against the U.S dollar on Thursday.

• It closed at 83.32 on Wednesday.

Source: Bloomberg

Benchmark Indices ended negative with little change from Wednesday's close, snapping two consecutive days of gains.

The S&P BSE Sensex ended down by 5.43 points to 66,017.81, while the NSE Nifty 50 fell 9.85 to close at 19802 points. The Nifty 50 hit its highest intraday level in five days at 19,875.15 points.

The losses in shares of Cipla and Larsen Toubro nullified the gains HDFC Bank and Reliance Industries, which led to the initial gains in the market.

"On intraday charts, the index is continuously taking resistance near 19,850 to 66,150, while on the downside, it has formed a higher bottom formation near 19,670 to 65,650," according to Shrikant Chouhan, Head Equity Research, Kotak Securities.

"Our view is that, as long as the index is trading above 19,670 to 65,650, the positive sentiment is likely to continue," he added.

Here's how Indian benchmark indices fared on Thursday:

Cipla Ltd., Larsen & Toubro Ltd., Infosys Ltd., TCS Ltd., and UltraTech Cement Ltd. were negatively adding to the change in the Nifty 50 Index.

Whereas, HDFC Bank Ltd., Bharti Airtel Ltd., Bajaj Auto Ltd., Hero Motocorp Ltd., and Reliance Industries Ltd. were positively contributing to the change.

While Nifty Pharma declined the most along with Nifty IT, Nifty Realty rose by 1.03%, while other major indices ended on a positive note.

As both Nifty and Bank Nifty remain rangebound, lacking clear confirmation of a definitive trend, and investors are advised to closely monitor sectors exhibiting resilience, said Ameya Ranadive Research Analyst at Choice Broking.

"Notable sectors to watch include Nifty IT, Nifty Energy, and Nifty Auto, which may present lucrative opportunities amid the current market dynamics."

The market breadth was skewed in the favour of buyers. About 2074 stocks advanced, 1631 declined, and 139 remained unchanged on the BSE.

• Stake in Dr Reddy's Laboratories reduced to 5.59% from 7.63% earlier

• Stake in Engineers India reduced to 3.12% from 5.15% earlier

Source: Exchange Filing

Shares of Cipla Ltd. fell over 7% on Thursday after the U.S. drug regulator revealed details of a warning letter to it Pithampur facility in Madhya Pradesh.

The warning letter summarises violations of current good manufacturing practices regulations for finished pharmaceuticals and product quality defect complaints.

The U.S. FDA also pointed out similar issues with the Goa facilities of the company, which is under 'Official Action Indicated' status. "FDA has cited similar CGMP observations at other facilities in your company’s network," the warning letter said.

It has asked the pharma company to take help from third party consultants to address the issues at the facilities.

"FDA may withhold approval of new applications or supplements, listing your firm as a drug manufacturer until any violations are completely addressed and we confirm your compliance with CGMP. We may re-inspect to verify that you have completed corrective actions to any violations."

The company had notified about the U.S. FDA warning through an exchange filing on Nov. 18. The routine CGMP at the facility was held between Feb. 6 and 7.

"The company will respond to the warning letter within the stipulated timelines and work closely with the U.S. FDA to address the concerns in a holistic and timely manner to ensure sustained compliance," it said.

Shares of Cipla Ltd. fell as much as 7.35%, before paring loss to trade 6.76% lower at 1:05 p.m., compared to a 0.03% decline in the NSE Nifty 50.

The stock has risen 10.2% on a year-to-date basis. Total traded volume so far in the day stood at 5.5 times its 30-day average. The relative strength index was at 41.05.

Of the 40 analysts tracking the company, 30 maintain a 'buy' rating, seven recommend a 'hold,' and three suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 7.4%.

• New RBI norms for banks, NBFCs to constrain loan growth

• Threat to financial stability lower after new RBI norms

• RBI norms on banks, NBFCs credit-positive

• New RBI norms to cut banks' common equity tier-1 ratio by 30 bps

• Believe new risk weight norms to have double-digit basis-point impact on private banks

• SBI sold stake via open market operations

• Reduces stake in SEPC from 7.15% to 4.97%

  Source: Exchange filing

India's benchmark indices were off their day's highs due to losses in shares of Cipla Ltd and Larsen and Toubro Ltd.

As of 12:40 p.m., the S&P BSE Sensex was up 16.30 points, or 0.03% to 66,039.55, while the NSE Nifty 50 declined 5.9 points, or 0.03% to 19,805.95.

"Despite a relatively narrow range of movement, the market exhibited resilience, said Shrey Jain, founder and CEO of SAS Online.

"Today, it is expected that the Nifty will trade in the range of 19,800 to 19,900 levels," Jain added.

In contrast to the Nifty, the Bank Nifty showed underperformance for the second consecutive day, Jain added. "It is anticipated that the Bank Nifty will consolidate around the current levels, considering the substantial open interest in both the 43,500 Call and Put options for the day," he said.

Shares of HDFC Bank Ltd, Reliance Industries Ltd, Bajaj Auto Ltd, Hero MotoCorp, and IndusInd Bank advanced. Whereas, those of Cipla Ltd, Larsen & Toubro Ltd, Tata Consultancy Services Ltd, ICICI Bank Ltd, and UltraTech Cement Ltd declined.

Among sectoral indices, Nifty Pharma and Nifty Healthcare declined the most by over 1%, while Nifty Realty and Nifty Media advanced.

The broader markets outperformed their larger peers on Thursday. The BSE Midcap rose 0.20% and the BSE SmallCap was 0.61% higher.

Fifteen of the 20 sectors compiled by BSE Ltd. advanced. BSE Healthcare fell the most.

The market breadth was skewed in the favour of buyers. About 2,058 stocks rose, 1,443 declined, and 179 remained unchanged on the BSE.

Suzlon Energy shares hit upper circuit after being locked in the lower circuit in the last three sessions. The shares rose as much as 4.95% to 39 apiece as of 11:51 a.m. This compares to a 0.01% advance in the NSE Nifty 50 Index.

It has risen 269.81% on a year-to-date basis. Total traded volume so far in the day stood at 1.4 times its 30-day average. The relative strength index was at 62.27.

Out of two analysts tracking the company both maintain a 'buy' rating according to Bloomberg data. The average 12-month consensus price target implies an upside of 396.2%.

Tube Investment shares fell as much as 7.86% to Rs. 293.35 apiece after reaching an all time high of Rs. 3,830 on Wednesday. It pared losses to trade 6.93% higher at Rs 258.35 apiece, as of 11:33 a.m. This compares to a 0.01% advance in the NSE Nifty 50 Index.

It has risen 25.02% on a year-to-date basis. Total traded volume so far in the day stood at 13 times its 30-day average. The relative strength index was at 61.74.

Out of 5 analysts tracking the company, 3 maintain a 'buy' rating, 1 recommend a 'hold,' and 1 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 34.1%.

• Vilfuro drug in India used for treatment of moderate to severe COPD

• COPD stands for chronic obstructive pulmonary disease

Source: Exchange Filing

Central Depository Services Limited shares gained over 6% on Thursday after it became the first depository to register 10 crore dematerialised account.

CDSL on Wednesday reported that the company crossed the 10 crore mark mirroring the post-pandemic spike in the number of equity investors. According to the company these demat accounts belong to investors across the country.

The total number of demat accounts has increased almost threefold since March 2020.

CDSL shares rose as much as 6.17% to Rs. 1,825 apiece to reach its all time high. It pared gains to trade 4.71% higher at Rs 1,800 apiece, as of 10:56 a.m. This compares to a 0.04% decline in the NSE Nifty 50 Index.

It has risen 61.39% on a year-to-date basis. Total traded volume so far in the day stood at 1.2 times its 30-day average. The relative strength index was at 71.

Out of 10 analysts tracking the company, 4 maintain a 'buy' rating, 5 recommend a 'hold,' and 1 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 50.2%.

Bajaj Auto stock rose as much as 3.26% during the day to hit all time high to Rs 5,939 apiece. It was trading 3.17% higher at Rs 1,780 apiece, compared to a 0.01% advance in the benchmark Nifty 50 as of 11:05 a.m.

It has risen 64.17% on a year-to-date basis. The total traded volume so far in the day stood at 3.1 times its 30-day average. The relative strength index was at 82.

Twenty Seven out of the 47 analysts tracking the stock maintain a 'buy' rating on the stock, 14 recommend a 'hold', and six suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 5.8%.

Shares of TVS Motor Co. hit an all-time high on Thursday after the company announced on Wednesday its entry into the Vietnam market.

TVS Motors has tied up with Minh Long Motors, its distribution partner in the South-Asian country, according to an exchange filing on Wednesday.

TVS Motors intends to offer range of scooters and underbone motorcycles, across multiple price segments in the Vietnam.

TVS Motors' foray in to Vietnam follows its recently announced entry to the Europe market, starting with France.

TVS Motor's stock rose as much as 2.62% during the day on the NSE to Rs 1,784.95 apiece. It was trading 2.34% higher at Rs 1,780 apiece compared to a 0.04% advance in the benchmark Nifty 50 Index.

It has risen 63.98% on a year-to-date basis. Total traded volume so far in the day stood at 4.2 times its 30-day average. The relative strength index was at 76.43.

Out of 43 analysts tracking the company, 25 maintain a 'buy' rating, 11 recommend a 'hold,' and 7 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 4.3%

Shares of the Selan Exploration Technology Ltd. jumped over 16%, hitting record high, on Thursday after its board of directors approved its amalgamation with Antelopus Energy Pvt.

After the amalgamation, promoters' shareholding in the company would rise to 69.93% from 30.46%, according to an exchange filing. The amalgamation is subjected to the approval of BSE and NSE.

The company's board of directors also approved raising funds of Rs 250 crore through issuing equity shares, fully or partially convertible debentures, non-convertible debentures.

Shares of the Selan Exploration rose as much as 16.05%, the highest its listing on the exchanges. It pared gains to trade 12.56% higher at Rs 537.35 apiece, as of 09:05 a.m. This compares to a 0.14% advance in the NSE Nifty 50 Index.

It has risen 115.0% on a year-to-date basis. Total traded volume so far in the day stood at 12.0 times its 30-day average. The relative strength index was at 74.27

Shares of Honasa Consumer Ltd were locked in upper circuit limit of 20% after the company's profit nearly doubled in its first quarterly results after listing on the bourses.

Consolidated net profit of the parent firm of Mamaearth and The Derma Co. rose 93.4% to Rs 29.4 crore in the quarter ended September, according to its exchange filing.

Honasa Consumer Q2 Highlights (Consolidated, YoY)

• Revenue rose 20.9% to Rs 496.1 crore.

• Ebitda grew 53.4% to Rs 40.2 crore.

• Margin at 8.1% versus 6.4%.

• Volume increased 27%.

• Ad costs rose 22% to Rs 174 crore.

In the first half of fiscal 2024, Honasa Consumer delivered revenue of Rs 961 crore, up 33% over the previous year.

According to Varun Alagh, the company's chairman and chief executive officer, this is 3.8 times the median growth of FMCG companies in the country. "The beauty market in India is brimming with opportunities, and we are receiving a lot of consumer love for our on-trend innovations across brands," Alagh said.

The scrip hit an upper circuit of 20%. This compares to a 0.2% advance in the NSE Nifty 50 Index.

One analyst tracking the company maintains a 'buy' rating for the stock. The 12-month upside return potential is 26.2%, according to Bloomberg data.

Shares of C,E. Info Systems jumped following an exchange filing by the company, which said its board of directors will meet on Monday to consider and approve the proposal of raising funds.

The scrip rose as much as 6.5% to Rs. 2,323 apiece. It pared gains to trade 2.9% higher at Rs 2,243.90 apiece, as of 09:53 a.m. This compares to a 0.1% advance in the NSE Nifty 50 Index.

It has risen 115.04% on a year-to-date basis. Total traded volume so far in the day stood at 5 times its 30-day average. The relative strength index was at 63.60.

Out of 4 analysts tracking the company, three maintain a 'buy' rating and one suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 0.3%.

India's benchmark stock indices opened higher on Thursday. The yield on the 10-year government securities opened flat, whereas the rupee strengthened and opened at Rs 83.30.

At pre-open, the S&P BSE Sensex Index was up 60.04 points, or 0.09%, at 66,083.28 while the NSE Nifty 50 was 16.60 points or 0.08% higher at 19,828.45.

"The overall sentiment remains positive as the index (Nifty) has held above the crucial support level of 19,500," said Rupak De, senior technical analyst at LKP Securities.

Resistance is positioned at 19,850 on the higher end; a breakthrough could potentially propel the Nifty towards the 20,200 mark, he added.

At pre-open, the S&P BSE Sensex Index was up 60.04 points, or 0.09%, at 66,083.28 while the NSE Nifty 50 was 16.60 points or 0.08% higher at 19,828.45.

Source: Bloomberg

The yield on the 10-year bond opened flat at 7.26% on Thursday.

Source: Bloomberg

• The local currency strengthened 2 paise to open at 83.30 against the U.S dollar on Thursday.

• It closed at 83.32 on Wednesday.

Source: Bloomberg

Unit Strides Pharma Global gets U.S. FDA approval for generic Suprep Bowel Prep Kit

Source: Exchange Filing

• HDFC MF takes 2.06% additional stake in co

• HDFC MF now holds 6.15% stake in the co

Source: Exchange Filing

• U.S. Dollar Index at 103.79

• U.S. 10-year bond yield at 4.50% on Wednesday

• Brent crude down 1.2% at $80.95 per barrel

• Nymex crude down 1.1% at $76.25 per barrel

• GIFT Nifty down 0.04% to 19891 as of 8:10 a.m.

• Bitcoin down 0.6% to $37,418

• Price band revised from 20% to 10%: Talbros Automotive Components.

• Ex/record date interim dividend: Crisil, Ingersoll-Rand, Ipca Laboratories, National Aluminium Co, Oil India, Pearl Global Industries, TD Power Systems.

• Move into short-term ASM framework: DCX Systems, Dhunseri Investments, Sastasundar Ventures. 

• Move out of short-term ASM framework: Antony Waste, Carysil. 

• Veranda Learnings: Promoters Kalpathi S Aghoram, Kalpathi S Ganesh, Kalpathi S Suresh bought 36,250 equity shares each on Nov. 21. 

• Paisalo Digital: Promoter Group Equilibrated Venture Cflow, PRI CAF, PRO FITCCH sold 60,000 shares on Nov. 22.  

• Ethos: Promoter Group Vardhan Properties and Investment sold 8,000 shares on Nov. 21 

• Sandhur Manganese And Iron Ore: Promoter SY Ghorpade sold 6,507 shares on Nov. 21.

• Deccan Gold Mines: Promoter Rama Mines Mauritius sold 15,000 shares on Nov. 20. 

• DB Realty: Promoter Vinod Goenka sold 36 lakh shares on Nov. 17 and Shravan Kumar Bali sold 17,731 shares on Nov. 17.

• IREDA: The IPO was subscribed 4.56 times on day two. The bids were led by non-institutional investors (7.74 times), portion reserved for employees (4.99 times), retail investors (4.26 times) and institutional investors (2.69 Times). 

• Tata Technologies: The IPO was subscribed 6.54 times on day one. The bids were led by non-institutional investors (11.69 times), retail investors (5.44 Times), institutional investors (4.08 times) and reserve portion for employees (1.11 times). 

• Gandhar Oil Refinery: The IPO was subscribed 5.54 times on day one. The bids were led by non-institutional investors (7.70 times), retail investors (6.92 Times), institutional investors (1.35 times). 

• Fedbank Financial Services: The IPO was subscribed 0.38 times on day one. The bids were led by retail investors (0.67 times), portion reserved for employees (0.37 times) and by non-institutional investors (0.21 times). 

• Flair Writing Industries: The IPO was subscribed 2.18 times on day one. The bids were led by retail investors (2.87 times), non-institutional investors (2.78 times) and by institutional Investors (0.53 times).

• TCS: The IT major was ranked first in Spain for customer satisfaction in service delivery among IT and cloud services providers. 

• ICICI Bank: The bank's infrastructure bond has been reaffirmed '[CARE AAA' with a 'stable' outlook by Care Ratings.

• Infosys: The IT giant announced a strategic long-term collaboration with TK Elevator to consolidate, harmonise, and modernise TK Elevator’s digital landscape.

• Bharti Airtel: Tamil Nadu DoT imposed a penalty of Rs 2,45,000 for an alleged violation of subscriber verification norms.

• ACC: The NSE and BSE imposed a penalty of Rs 47,000 each for delays in the appointment of key managerial personnel.

• Tata Steel: The company allotted 7.5 crore shares to Tata Steel Long Products and their shareholders in the scheme of amalgamation.

• UPL: The company has incorporated a wholly owned subsidiary, Avanta Seeds, in South Africa.

• R Systems: BSE and NSE imposed a fine of Rs 76,000 each on the company for non-compliance with the regulations of SEBI.

• InterGlobe Aviation: The company got a tax demand notice of Rs 7,396.76 million and Rs 9270.31 million, for which the company had preferred appeal before CIT-Appeal.

• Welspun Corp: The company's subsidiary, Sintex BAPL, received the Odisha Government's nod for its proposal to invest Rs 479.47 crore in setting up a manufacturing unit with a capacity of 37,520 MT.

• Shalby: The company executed the amendment agreement to the operation and management agreement with the Santacruz Residents Association and Smt. Bhikhubai Chandulal Jalundwala General Hospital (Trust) to enable the company to execute the project at Santacruz, Mumbai.

• Power Grid Corp: The company approved a power project worth Rs 142.69 crore in Telangana and a power project worth Rs 224.41 crore in Gujarat.

• Adani Enterprises: NSE imposed a fine of Rs 34,000 for delaying approval for the appointment or continuation of a non-executive director who attained the age of 75 years.

• TVS Motor: The automaker announced its entry into Vietnam in collaboration with Minh Long Motors, its distribution partner.

• Indian Railway Finance Corporation: NSE and BSE imposed a fine on the company of Rs 5,42,800 each for non-compliance with regulatory

• BPCL: The company bagged the new project of value 32.62 million under the Gati Shakti Sealdah Division of Eastern Railway. NSE and BSE have imposed a fine on the company of Rs 5,42,800 each.

• Techno Electric: The company signed a MoU with Keppel Data Centres Pvt. for collaboration on joint data centre campus development.

• Ambuja Cement: The NSE and BSE have imposed a fine on the company of Rs 47,000 for the delayed appointment of the company secretary and compliance officer.

• C.E. Info Systems: The board meeting is scheduled for Nov. 27 to consider and approve the proposal to raise the funds.

• Adani Green: NSE and BSE have imposed a fine on the company of Rs 5,61,680 each.

• Neuland Laboratories: The company appointed Dr. Sharadsrikar V. Kotturi Chief Scientific Officer (CSO) w.e.f. Nov. 22, 2023.

• Mastek: NSE and BSE have imposed a fine on the company of Rs 5.84,000 each.

• Honasa Consumer: The company reported Rs 496 crore in revenue from operations in Q2 FY24, up 21% YoY. The parent of Mamaearth reported a profit after tax of Rs 29 crore, up 94% YoY.

• Max Estates: The real estate arm of Max Group’s received a completion cum occupancy certificate for phase 2 of Max House. The phase of development has a net leasable area of around 1.5 lacs sq. ft.

• Genesys International: The company and Survey of India signed a strategic partnership for creating digital twins of major cities and towns.

• Lux Industries: The company will carry out businesses across four separate verticals.

• Elpro International: The company acquired 2.4 lakh equity shares of JSW Infra for Rs 5 crore.

• Servotech Power: The company won orders for 2649 EV chargers from BPCL. The company will be responsible for manufacturing, supplying and installing EV chargers strategically across the nation.

Most indices in Asia fell on Thursday, even as U.S. stocks rose ahead of the Thanksgiving holiday on Thursday. Treasury yields in the U.S. fell on the data showing US consumers expect inflation to persist.

Indices in Japan remain shut today on account of a public holiday. Australia's S&P/ASX 200 lost 0.4%, and Hong Kong's Hang Seng shed 0.8%. China's Shenzhen Component and Shanghai Composite also traded lower.

South Korea's Kospi was the only index in the region that rose.

U.S. indices ended higher on Wednesday as data indicated that unemployment claims in the country fell more than expected last week.

Investors in the region hoped that the Federal Reserve may stop raising interest rates, even as the minutes of the Fed meeting released on Tuesday showed a cautious approach to monetary policy.

The yield on the 10-year U.S. bond was trading at 4.50%, and Bitcoin was below $37,442.26. Brent crude was above $80.81 a barrel, whereas WTI crude was above $76.12 a barrel.

The GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was 0.01% down at 19,895.5 as of 8:15 a.m.

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

The S&P BSE Sensex closed 93 points up, or 0.14%, at 66,023.24, while the NSE Nifty 50 ended 29 points, or 0.14%, higher at 19,811.85.

The Sensex closed above the 66,000 level after five weeks.

Overseas investors remained net sellers of Indian equities for the fourth consecutive session. Foreign portfolio investors offloaded stocks worth Rs 306.6 crore; domestic institutional investors continued as buyers and mopped up stocks worth Rs 721.2 crore, the NSE data showed.

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