MARKET WRAP: Sensex, Nifty end flat ahead of GDP nos; IT, pharma stks rally

The domestic equity market signed off the first day of December F&O series on a flat note with a positive bias on Friday amid buying in pharmaceutical, information technology (IT) and automobile counters.

The S&P BSE Sensex ended at 36,194, up 24 points, or 0.1 per cent, while the broader Nifty50 index settled at 10,877, up 18 points, or 0.2 per cent.

In the broader market, the S&P BSE MidCap rose 0.6 per cent to settle at 15,039 levels, while the S&P BSE SmallCap settled 0.5 per cent higher at 14,427 levels.

Going ahead, investors will look forward to key macroeconomic data such as GDP numbers for the September quarter, fiscal deficit and core sector growth, due later in the day. That apart, investors will also keep an eye on the meeting between Chinese President Xi Jinping and US President Donald Trump at the G20 summit in Buenos Aires this weekend.

The rupee traded on a firm note on Friday, rising to 69.59 against the US dollar in intra-day trade on the back of free fall in crude prices and heavy buying by foreign institutional investors (FIIs). The domestic unit on Thursday had breached the 70-mark for the first time since August 27 to end at a three-month high of 69.85 per US dollar.

Key stocks

Reliance Communications (RCom) rose 13 per cent to Rs 14.40 on the National Stock Exchange (NSE) on Friday after the Supreme Court asked RCom to furnish a corporate guarantee of Rs 14 billion within two days to get the No Objection Certificate (NOC) from the government. The corporate guarantee will be issued by Reliance Realty Ltd, a wholly-owned subsidiary of RCom.

The Nifty Pharma index rose 2 per cent led by a rise in shares of Biocon and Dr. Reddy's Laboratories. The Nifty IT index gained 1.2 per cent led by Infosys and Tata Consultancy Services (TCS).

YES Bank ended 6.3 per cent higher at Rs 170.50 after a TV report said that the private bank's promotor Rana Kapoor doesn’t have any ownership in Morgan Credits or Yes Capital.

In an exclusive interaction with CNBC-TV18, the bank's management clarified that the CEO Rana Kapoor doesn't have any ownership in Morgan Credits and YES Capital.

Global markets

Asian shares twitched either side of flat on Friday, reflecting investors' nervousness ahead of talks between US President Donald Trump and China's President Xi Jinping that could determine whether the Sino-US trade war gets any worse.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 per cent, as an official survey pointed to a slowdown in China's manufacturing sector. The index was still set for its best month since January as it bounced from a bruising October.

In Japan, the Nikkei ended 0.4 per cent higher, while Korean shares dropped 0.8 per cent after the country's central bank lifted its policy interest rate in a widely expected decision. Chinese blue-chips advanced 1 per cent despite a survey showing China's factory growth stalled for the first time in more than two years in November.

Oil prices

Brent oil prices firmed on Friday on expectations that OPEC and Russia will agree to some form of production cut next week, while US crude was weaker due to swelling inventories. International Brent crude oil futures were at $59.68 per barrel, up 17 cents, or 0.3 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at 51.41, down 4 cents.

(with wire inputs)

3:38 PM

Top sectoral gainers and losers on NSE

3:38 PM

S&P BSE Sensex: Top gainers and losers

3:34 PM

Market at close

 

The S&P BSE Sensex added 24 points to settle at 36,194 while NSE's Nifty50 index ended at 10,877, up 18 points

3:25 PM

Vodafone Idea falls 6% as CRISIL downgrades NCD rating

 

Shares of Vodafone Idea dipped 6% to Rs 35.60 per share on the BSE after the rating agency CRISIL downgraded its rating on non-convertible debentures (NCD) of Rs 60 billion. READ MORE

 

3:10 PM

Asia's Iran oil imports plunge to five-year low in October

Imports of Iranian crude oil by major buyers in Asia hit a five-year low in October, as China, Japan and South Korea sharply cut purchases ahead of U.S. sanctions on Tehran that took effect in early November, government and ship-tracking data showed.

 

China, India, Japan and South Korea last month imported about 762,000 barrels per day (bpd) from Iran, according to the data, down 56.4 percent from a year earlier. READ MORE

2:53 PM

United Spirits hits 5-month high; stock rises 6%

Shares of United Spirits (USL) hit a five-month high of Rs 675, up 6% on BSE in an otherwise range-bound market, on the expectations of higher volume growth in the current quarter. The stock was trading at its highest level since June 28, 2018. In past five-weeks, USL outperformed the market by surging 33% after the company posted a strong 69% year-on-year jump in net profit at Rs 2.59 billion in September quarter (Q2FY19), on the back of robust sales of its premium brands. In comparison, the S&P BSE Sensex was up 5% during the same period. Read more

2:38 PM

Oil set to see worst month in a decade on growing fears over supply glut

 

Oil’s on track for its worst month in a decade on growing fears over a global supply glut that’s been exacerbated by American waivers to Iranian crude buyers. Futures in New York are set to drop about 21 per cent in November, falling for a second month. While Russia showed a willingness to join Saudi Arabia in curbing output, the outcome of an OPEC meeting in Vienna next week is still unclear as the group is under pressure from President Donald Trump to lower prices. Meanwhile, the specter of expanding US crude stockpiles has also been haunting the market. Read more

2:23 PM

MFs modify expense structure for direct plans to improve transparency

 

A month after the Securities and Exchange Board of India (Sebi) came up with guidelines for greater transparency in the way expenses are calculated, fund houses have both cut and raised expenses for their direct plans. By and large, expenses have reduced, which is a positive for investors as that may boost returns. Motilal Oswal Mutual Funds (MF) and Edelweiss MF have seen the expenses for their direct equity schemes drop by 20-30 basis points (bps). HDFC MF and Franklin Templeton MF, on the other hand, have raised the expenses of their direct plans by 2-10 bps. Read more

2:13 PM

NEWS ALERT Inox Leisure board approves allotting 64 lakh shares to promoter Gujarat Fluoro

2:09 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,169.58	-0.83	0.00
S&P BSE SENSEX 50	11,352.61	+2.41	+0.02
S&P BSE SENSEX Next 50	32,157.24	-8.37	-0.03
S&P BSE 100	11,105.70	+1.57	+0.01
S&P BSE Bharat 22 Index	3,394.54	-26.06	-0.76

2:03 PM

NEWS ALERT Allahabad Bank to consider fund raising up to Rs 3,054 crores by share issuance to government on December 6

1:55 PM

Prabhudas Lilladher on NOCIL

 

Rating: BUY 

CMP: Rs 169 

TP: Rs 270

 

Nocil’s is expected to report 21% CAGR in earnings growth over FY18-21E led by 1) higher volumes post commissioning of new capacity 2) higher realisation and 3) benign raw material pricing. We have valued Nocil at 15x P/E FY21E which translates to EV/E of 8.0x FY21E.

1:48 PM

Prabhudas Lilladher on Tech Mahindra

 

Rating: BUY

CMP: Rs 688

Target Price: Rs 885

 

We believe Tech Mahindra is poised for turnaround in revenue growth trajectory post three years of tepid performance led by a) Turnaround in Telecom vertical b) expansion in portfolio in Enterprise vertical through acquisitions which has broadened the service offerings. We believe margins have also reached a stable state (2QFY19 EBIDTA margin at 18.8%). Improving margin profile of subsidiaries and revival in growth should aid margin stability from hereon. Valuations remain cheap (12x FY20E EPS) and risk return remains favorable. Retain TP at Rs885/sh (15x Sep20E EPS). In this report, we analyze the key opportunities for Tech M in 5G which could drive growth revival.

1:43 PM

Kesoram Industries climbs 10% on demerger of tyre business report

1:33 PM

SC asks RCom to deposit Rs 14 bn guarantee for spectrum sale to RJio

Clearing the deck for sale of Reliance Communications Ltd's spectrum to Reliance Jio Infocomm Ltd, the Supreme Court on Friday asked Reliance Communications to furnish a corporate guarantee of Rs 14 billion within two days to get the No Objection Certificate (NOC) from the government. The corporate guarantee will be issued by Reliance Realty Ltd, a wholly-owned subsidiary of RCom. READ MORE