Sensex, Nifty Decline For Second Session Dragged By Banking, Metal Stocks

The S&P BSE MidCap index underperformed its larger peers slipping 0.5% while the S&P BSE SmallCap index outperformed as it remained little changed. Twelve of the 19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Metal shedding over 2% and S&P BSE Realty index losing over 1.6%

The market breadth was skewed in the favour of bulls. About 1,720 stocks advanced, 1,587 declined and 151 remained unchanged.

#Cabinet approves mechanism for procurement of ethanol by Public Sector Oil Marketing Companies under Ethanol Blended Petrol programme #CabinetDecisions pic.twitter.com/uUhgWe0PIv

— Jaideep Bhatnagar (@DG_PIB) November 10, 2021

100% foodgrains and 20% of sugar to be packed in jute bags as #Cabinet approves reservation norms for Jute Packaging Materials for Jute Year 2021-22 under JPM Act, 1987

Move to bring relief to 3,70,000 workers employed in jute mills and ancillary units#CabinetDecisions pic.twitter.com/WOjFvHVdR4

— Jaideep Bhatnagar (@DG_PIB) November 10, 2021

Shares of TVS Motor Company Ltd. rose for the ninth straight day, on track for the longest winning streak in over 18 years. TVS Motor stock rose over 3% in intraday trade to Rs 754 apiece.

• Shares of TVS Motor rose 20% during the streak while the S&P BSE Sensex Index fell 1.2% over the corresponding period.

• This is the longest winning streak for the stock since the period ended May 12, 2003.

• The relative strength index on the stock was 87, suggesting it may be overbought.

• Of the 46 analysts tracking the company, 27 maintained 'buy', seven maintained 'hold' and 12 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 13%.

• Aurobindo Pharma raised to 'buy' from 'reduce' at Choice Equity; price target: Rs 781

• Ujjivan Small Finance Bank raised to 'buy' from 'add' at Centrum Broking; price target: Rs 31

• Mahindra & Mahindra raised to 'neutral' from 'sell' at Phillip Securities; price target: Rs 830

Source: Bloomberg

Shares of Bank of Baroda shed 6.68% to Rs 99.25apiece despite reporting net income above average analyst estimate in the September quarter.

Second Quarter Results (Consolidated)

• Net profit at Rs 2,167.85 crore vs Rs 1,771.21 crore YoY (Bloomberg consensus estimate: Rs 1,450 crore)

• Interest income at Rs 17,540.89 crore vs Rs 18,739.33 crore YoY

• Gross NPA at 8.11% vs 8.86% QoQ

• Total costs at Rs 16,166.28 crore vs Rs 16,544 crore YoY

Of the 35 analysts tracking the company, 26 maintained 'buy', six maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 4.1%

Shares of Alembic Pharmaceuticals Ltd. rose 1% in intraday trade to Rs 788.5 apiece after reporting net income that matched analyst estimate, for the September quarter.

Second Quarter Results (Consolidated, QoQ)

• Revenue down 2.5% at Rs 1,292.3 crore Vs Rs 1,326 crore (BBG estimate : Rs 1,309.8 crore)

• Net profit up 2.9% to Rs 169.3 crore from Rs 164.5 crore (BBG estimate : Rs 169.5 crore Profit)

• EBITDA at Rs 257.2 crore Vs Rs 235.9 crore, up 9% (BBG estimate : Rs 251.4 crore)

• Margins at 19.9% Vs 17.8% (BBG estimate : 19.2%)

• EPS at Rs 8.61 per share Vs Rs 8.37 (BBG estimate : Rs 8.65)

Of the 18 analysts tracking the company, seven maintained 'buy', six maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 15%. Trading volume on the stock was 2.2 times the 30-day average volume, for this time of the dya.

• India’s rupee fell along with the South Korean won as concerns about quickening inflation sapped risk appetite. A gauge of regional equities fell, while most bonds rose.

• The rupee declines as rising crude prices threaten to inflate India’s oil-import bill 

Source: Bloomberg

September quarter results (Consolidated, QoQ)

• Net loss at Rs 162.6 crore vs net loss of Rs 205.2 crore (BBG estimate : net loss of Rs 57.1 crore)

• Revenue at Rs 721.47 crore vs Rs 688.37 crore (Estimate: Rs 773 crore)

• Total costs at Rs 835.15 crore vs Rs 834.94 crore

• Other income at Rs 22.21 crore vs Rs 13.53 crore

Of the seven analysts tracking the company, six maintained 'buy' and one maintained 'hold' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 55.6%.

Shares of NBCC India Ltd. rose nearly 4%, the biggest intraday gain in two weeks, to Rs 49.3 apiece after the company secured total business of Rs 467.44 crore in October, according to an exchange filing.

Of the four analysts tracking the company, two maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 12.4%.

Trading volume on the stock was 1.9 times the 30-day average volume, for this time of the day.

The company is scheduled to report its earnings for the September quarter on Friday.

Vodafone Idea Ltd. announced it has successfully conducted a 5G trial, along with its technology partner Nokia.

In a press release, Vodafone Idea said that the trial utilised 5G in the 3.5 Giga Hertz spectrum band allocated by the government for the trials, to provide rural broadband connectivity in Gandhinagar in Gujarat.

Source: Press Release

• Paytm IPO was subscribed 1.05 times as of 1:15 p.m.

• Portions reserved for retail and institutional investors were fully booked.

Source: BSE

Shares of Firstsource Solutions Ltd. shed nearly 5% in intraday trade, to Rs 189.13 apiece after the company reported net income for the second quarter that matched the average analyst estimate.

September Quarter Results (Consolidated, QoQ)

• Net profit up 1.07% at Rs 135.01 crore vs Rs 133.58 crore (Bloomberg Consensus Estimate: Rs 135 crore)

• Revenue down 4.05% at Rs 1,418.21 crore vs Rs 1,478.01 crore (Estimate: Rs 1,489 crore)

• Total costs at Rs 1,264.99 crore vs Rs 1,319.40 crore

The company's step down subsidiary Sourcepoint Inc. has executed stock purchase agreement on Tuesday to acquire 100% stake in The StoneHill Group, Inc.

• The StoneHill Group is a leading U.S. mortgage services provider with focus on quality control and due diligence.

• The cost of the acquistion is $27 million, including earnouts payable on first anniversary from closing.

Of the eight analysts tracking Firstsource Solutions, six maintained 'buy' and two maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 27.4%.

Trading volume was 3.5 times the 30-day average volume, for this time of the day.

Shares of Firstsource Solutions crossed below 100-day moving average on high trading volume.

• Expanded Oracle Cloud Mumbai region will be available in 2022

• Airtel and Oracle will set up a cloud centre of excellence in Gurgaon

• Airtel Business and Oracle will jointly market Oracle Cloud solutions to customers in private and public sectors.

Source: Exchange Filing

• With India’s COVID-19 vaccination campaign crossing new milestones in rapid succession and teeming festivities lending renewed optimism to India’s ongoing economic recovery, further demand stimulation, fuller restoration of supply chains, narrowing of demand-supply mismatches and greater employment generation, are in the offing.

• Good kharif production and adequate buffer stock of food grains expected to keep food inflation low

• Retail inflation, having declined, to stay comfortably close to the median of RBI’s monetary policy goal.

• Unlike central banks in advanced countries, the RBI is not under pressure to raise repo rates for checking inflation.

• While hardening input costs and ripple effects of escalating global crude oil prices continue to pose concerns, responses to RBI’s inflation survey indicate that these concerns are still not

  embedded into either cost-push or demand side inflationary expectations.

• Limited growth in revenue expenditure despite an annual increase in major subsidies, indicates re-prioritisation of revenue expenditure to meet the fiscal targets

• Modest growth of 6.3% in rationalized revenue expenditure, doubling of net tax revenues and increase in non-tax revenue by over 70%, has reigned-in fiscal deficit in the first six months of FY22.

• Growth in net tax revenues of the centre tracks economic recovery as much as it is an outcome of improved tax collection efforts.

Source: Monthly Economic Review, October 2021

The S&P BSE MidCap almost mirrored its broader peers shedding 0.5% while S&P BSE SmallCap index outperformed with gains of 0.25%. Thirteen of the 19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Metal and S&P BSE Realty indexes falling nearly 2%

The market breadth was skewed in the favour of bulls. About 1,725 stocks advanced, 1,462 declined and 157 remained unchanged.

Shares of Bharat Heavy Electricals Ltd. shed 7.5% in intraday trade to Rs 66.7 apiece after the company reported a net loss of Rs 67.49 crore in the September quarter, post market hours Tuesday.

BHEL Q2FY22 (Consolidated, YoY)

• Revenue up 38% at Rs 5,112.19 crore Vs Rs 3,695.96 crore

• Net loss of Rs 45.98 crore Vs Rs 552.02 crore

• Ebitda loss of Rs 29.96 crore Vs Rs 633.32 crore

Of the 26 analysts tracking the company, one maintained 'buy', four maintained 'hold' and 21 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 45.6%.

Motilal Oswal

• Maintains 'sell' with the target kept unchanged at Rs 45, an implied return of -37.59%.

• Lack of operating leverage led to losses at the operating level.

• Executable order book stands at Rs 9,000 crore out of the total order book of Rs 1.1 lakh crore.

• Management expecting some pressure on margin front in Q3 as well, as the company is negotiating with customers to pass on price hike.

• High fixed cost continues to dent operating performance.

• Expect receivables to remain elevated in the near future.

• Ordering in the FGD segment is expected to be modest.

• Company continues to struggle with weak ordering environment in power sector, high receivables and huge employee cost.

• See further downside risk to order inflow.

Edelweiss

• Maintains 'reduce' with the target raised to Rs 40 from Rs 35; implied return of -44.52%.

• New orders for H1 are 40% higher YoY, while balance sheet has improved.

• Commentary on new thermal order sets is not encouraging.

• Positive impact of the operational overhaul beginning to be visible.

• BHEL's fundamentals will hover around balance sheet revival, scalability of new avenues and conventional thermal orders.

• Monetisation of current assets to focus on capital allocation into new areas will have repercussions for stakeholders.

• The Indian rupee declines as rising crude prices threaten to inflate the nation’s oil-import bill. Bonds are lower.

• USD/INR climbs 0.2% to 74.1650; pair fell to 73.8488 on Tuesday, the lowest since Sept. 28

• 10-year bond yields up 2bps to 6.31%

Source: Bloomberg

September quarter results (Consolidated, QoQ)

• Net income down 30.9% at Rs 29.75 crore vs estimate of Rs Rs 32.43 crore

• Revenue up 18.14% at Rs 1,234.85 crore vs estimate of Rs 1,150 crore

• Total costs at Rs 1,201.61 crore vs Rs 983.11 crore

• Other income at Rs 6.59 crore vs Rs 3.13 crore

Of the 11 analysts tracking the company, two maintained 'buy', three maintained 'hold' and six maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 18.9%.

Trading volume on the stock was 3.1 times the 30-day average volume, for this time of the day.

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• Most maturities along the India sovereign yield curve were little changed, while 4-year yields rose in Wednesday morning trading.

• The 3-year yield rose 1.7bps to 5.046%

• The 10-year yield rose 0.5bps to 6.298%

• The 20-year yield remained unchanged at 6.949%

• The 3-year-10-year yield spread was 125.2bps, vs previous close 126.3bps

Source: Bloomberg

• RailTel Corporation of India Ltd. bagged work order from Centre for Railway Information Systems to set up three-way DR of Freight Operations Information System (FOIS).

• The total value of the order is Rs 22.39 crore (inclusive of GST)

Source: Exchange Filing

Shares of Bosch Ltd. shed 4.56% in intraday trade to Rs 17,905.95 apiece despite the company reporting sequential growth in net profit and revenue in the September quarter, post market hours Tuesday.

Bosch Q2FY22 (Consolidated, QoQ)

• Net profit up 43.2% at Rs 371.93 crore vs Rs 259.76 crore

• Revenue up 19.4% at Rs 2,917.97 crore vs Rs 2,443.53 crore

• Total costs at Rs 2,644.84 crore vs Rs 2,207.19 crore

• Other income at 124.34 crore vs Rs 98.97 crore

Of the seven analysts tracking the company, three maintained 'buy', two maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 13.4%.

• Nykaa’s pre-market discovery price at Rs 2,001 per share, compared to its IPO share price of Rs 1,125.

• The company’s IPO subscribed over 81 times.

Source: Bloomberg

Tata Power Company Ltd. says

• Co does meet relevant corporates to explore various opportunities

• No agreement has been signed with any prospective investors

• No board approval has been sought as of date with regards to Blackrock

Source: Exchange Notification

• For domestic and NRI savings account deposits worth up to Rs 10 lakh, interest rate cut by 10 bps to 2.8%, with effect from Dec 1.

• For savings account deposits worth over Rs 10 lakh, interest rate cut by 5 bps to 2.85%, with effect from Dec 1.

• Punjab National Bank had last cut its savings account rate by 10 bps in Sept.

Source: Punjab National Bank website

The broader indexes outperformed their broader peers with the S&P BSE MidCap index shedding 0.1% and the S&P BSE SmallCap gaining 0.3%. Fourteen of the 19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Bankex index losing 1%.

The market breadth was skewed in favour of the bulls. About 1,463 stocks advanced, 993 declined and 111 remained unchanged.

• PB Fintech Ltd., the operator of insurance aggregator policybazaar.com, priced shares in its Indian initial public offering at Rs 980 per share, the top of an indicative range, according to terms of the deal obtained by Bloomberg News.

• The IPO comprises Rs 3,750 crore of new shares from PB Fintech and Rs 1,960 crore of existing shares from shareholders: terms

• Shares were offered at Rs 940-980 each

• Company will use the proceeds for enhancing visibility and awareness of brands, new opportunities to expand its consumer base including offline presence, strategic investments and acquisitions, expanding presence outside India and general corporate purposes: terms

• Listing expected on November 15

• Kotak Mahindra Capital, Morgan Stanley India, Citigroup Global Markets India, ICICI Securities, HDFC Bank, IIFL Securities and Jefferies India are the managers for the sale

Source: Bloomberg

• Sobha raised to 'buy' at Nirmal Bang; price target: Rs 1,147

• Indraprastha Gas raised to 'buy' at Centrum Broking; price target: Rs 620

• Ujjivan Small Finance Bank cut to 'reduce' at Equirus Securities; price target: Rs 22

Source: Bloomberg

Tarsons Products Ltd. has set Rs 635-662 per share for its initial public offering that could raise as much as Rs 1,020 crore ($138 million), according to an advertisement in the Financial Express newspaper Wednesday.

• The supplier of labware products plans to raise Rs 150 crore selling new shares. The company's investor and founders are selling 13.2 million shares in the IPO.

• Investors can bid for minimum 22 shares of face value Rs 2 each in the sale, which opens November 15 and closes November 17.

• 60,000 shares have been reserved for the company's employees, who will get the shares at a discount of Rs 61 to the IPO issue price.

• ICICI Securities, Edelweiss Financial Services and SBI Capital Markets are managing the IPO.

Source: Bloomberg

• Indian bond traders will watch the results of a treasury bill auction for cues on short-term rates, which have risen in recent weeks.

• Cutoff yields on t-bills rose to their highest since April 2020 last week

• PM Modi to launch retail trading in Indian govt bonds Friday, according to an RBI advertisement

• USD/INR little changed at 74.0313 on Tuesday after an intraday drop to the lowest since Sept. 28

• 10-year yields down 1bp to 6.29% on Tuesday

• Global funds sell net Rs 2450 crore of India Stocks Tuesday: NSE

• They bought Rs 128 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 193 crore of corporate debt

• State-run banks sold Rs 3,460 crore of sovereign bonds on Nov. 9: CCIL data. Foreign banks bought Rs 5,070 crore of bonds.

Source: Bloomberg

JSW Energy Ltd. intends to raise $500 million via a stake sale in its renewables business. The decision is aimed at funding expansion of its clean enery capacity, the Economic Times reported, citing people who didn't wish to be named.

According to the report, JSW Energy has hired Morgan Stanley to run the transaction, and feelers have been sent to investors including pension funds, sovereign asset managers and PE firms

Prime Minister Narendra Modi will launch a scheme on Friday to allow retail trading of government bonds on the central bank’s digital platform, the RBI said in an advertisement posted in the Economic Times.

Retail investors can open and maintain their online account with the RBI for free, the central bank said

In February, the central bank said it will permit retail investors to buy government bonds as it sought to widen the investor base.

All You Need To Know Going Into Trade On November 10