MARKETS: Indices end flat; Sensex slips 37 points, Nifty settles at 13,114
All that happened in the markets today
 "(Photo: Kamlesh Pednekar)")
(Photo: Kamlesh Pednekar)
9:17 AM
Opening Bell
9:11 AM
Top gainers and losers on the S&P BSE Sensex at Pre-open
9:08 AM
Markets at Pre-open
9:04 AM
Markets at Pre-open
8:59 AM
Stocks to watch
Dr Reddy's Laboratories and Russian Direct Investment Fund (RDIF) on Tuesday said they have commenced adaptive phase 2/3 clinical trials for the Sputnik V COVID-19 vaccine in India. The trials have commenced after receiving the necessary clearance from the Kasauli-based Central Drugs Laboratory, they added.
Phoenix Mills: The company informed that The Phoenix Mills Limited and its subsidiaries have jointly signed a non-binding term-sheet with an affiliate of GIC Private limited ('GIC'), for formation and development of a strategic retail-led mixed use platform ("Proposed Transaction").
Coal India: State-owned Coal India on Tuesday reported a 3.4 per cent rise in production at 51.7 million tonnes (MT) in November. The company had posted an output of 50 MT in the corresponding month of the previous fiscal, Coal India (CIL) said in a filing to BSE. READ MORE
8:58 AM
BROKERAGE VIEW :: Nomura on Automobiles
>> Industry wholesales for Nov-20 came largely in line with expectations. Volume growth was the strongest in tractors followed by two wheelers (2W) and passenger vehicles (PV) while it declined for medium heavy commercial vehicles (MHCV). In terms of retail volumes for the festive season (Oct+Nov), demand was robust in tractors due to strong rural sentiments. PV retails were also up y-y and is a positive while 2W was likely down in double-digits. Inventory levels remain low in tractors/PVs, but normal in 2Ws; hence, we see need for inventory addition in these categories.
>> M&M remains our top pick on the rural theme, initiatives to address capital allocation concerns, and attractive valuations. We also like Ashok Leyland (AL IN, Buy) in the sector. In ancillaries, we like Balkrishna (BIL IN, Buy) and Motherson Sumi (MSS IN, Buy).
>> M&M remains our top pick on the rural theme, initiatives to address capital allocation concerns, and attractive valuations. We also like Ashok Leyland (AL IN, Buy) in the sector. In ancillaries, we like Balkrishna (BIL IN, Buy) and Motherson Sumi (MSS IN, Buy).
8:55 AM
BROKERAGE VIEW :: Jefferies on Automobiles
>> PV demand is holding up well with registrations in tracked states up 11% YoY last week. Based on the volumes reported by OEMs, we estimate November wholesales rose 8-9% YoY, fourth consecutive month of growth.
>> 2W registrations improved a sharp 30% WoW last week, boosted by the lagged effect of festive period sales, and were down just 3% YoY. We estimate 2W wholesales grew 12-14% YoY in November.
>> 2W registrations improved a sharp 30% WoW last week, boosted by the lagged effect of festive period sales, and were down just 3% YoY. We estimate 2W wholesales grew 12-14% YoY in November.
8:51 AM
BROKERAGE VIEW :: MOFSL on NMDC
CMP: Rs 99 | TP: Rs 129 (+30%) | Reco: Buy
>> We expect NMDC to restart operations from the Donimalai mine by Decemberend and accordingly raise our FY21E/FY22E volume estimate by ~3%/16% to 31.3mt/37mt. However, incremental EBITDA contribution from Donimalai mine would be lower due to levy of 22.5% premium. We expect EBITDA to grow ~11% CAGR over FY20-22E despite a volume/realization CAGR of 8%/~5%.
>> We see NMDC as a second order beneficiary of an improving domestic steel demand and prices. NMDC has raised prices by INR500/t for Dec-20 leading to cumulative hikes of INR2,250/t over last five months. We expect 2HFY21 EBITDA to ~60% higher YoY at INR50.8b on strong pricing.
>> The government’s proposal to levy a premium on NMDC on its mining leases has emerged as a key overhang on the stock. If a premium of 22.5% of revenue is levied on all of NMDC’s mines, it poses a downside risk of ~25% to our FY22E EBITDA.
>> We value the stock at INR129/share on a SoTP basis – 4x FY22E EV/EBITDA for its core iron ore mining business and ~25% book value for the Nagarnar plant. At the CMP, the stock is trading at 2.8x its core iron ore mining business. Reiterate Buy on strong earnings and valuation support.
>> We expect NMDC to restart operations from the Donimalai mine by Decemberend and accordingly raise our FY21E/FY22E volume estimate by ~3%/16% to 31.3mt/37mt. However, incremental EBITDA contribution from Donimalai mine would be lower due to levy of 22.5% premium. We expect EBITDA to grow ~11% CAGR over FY20-22E despite a volume/realization CAGR of 8%/~5%.
>> We see NMDC as a second order beneficiary of an improving domestic steel demand and prices. NMDC has raised prices by INR500/t for Dec-20 leading to cumulative hikes of INR2,250/t over last five months. We expect 2HFY21 EBITDA to ~60% higher YoY at INR50.8b on strong pricing.
>> The government’s proposal to levy a premium on NMDC on its mining leases has emerged as a key overhang on the stock. If a premium of 22.5% of revenue is levied on all of NMDC’s mines, it poses a downside risk of ~25% to our FY22E EBITDA.
>> We value the stock at INR129/share on a SoTP basis – 4x FY22E EV/EBITDA for its core iron ore mining business and ~25% book value for the Nagarnar plant. At the CMP, the stock is trading at 2.8x its core iron ore mining business. Reiterate Buy on strong earnings and valuation support.
8:49 AM
BROKERAGE VIEW :: MOFSL on Automobiles
>> Festive season sales were reasonable, with no major negative surprise. Current demand and low inventory sentiment in PV and Tractor suggests higher wholesales in the coming months. On the flip side, 2W and CV OEMs are expected to maintain a cautious stance, with no major inventory push. Valuations reflect for recovery to sustain in the coming quarters, leaving limited margin for safety for any negative surprises. Hence, we prefer companies with: a) higher visibility in terms of demand recovery, b) a strong competitive positioning, c) margin drivers, and d) balance sheet strength. M&M and Hero MotoCorp are our top OEM picks. Among the auto component stocks, we prefer Endurance Tech and Motherson Sumi Systems
8:46 AM
'A close below 12,790 would negate bullish trend in markets'
After a pause on Friday, Nifty resumed its uptrend on Tuesday where it gained 140 points to close at 13,109 levels. The markets' trend is still bullish with higher top higher bottom formation on the daily and weekly charts On the lower side, recent swing low of 12,790 will act as a support. Nifty needs to close below 12,790 level to negate the bullish set up.
Therefore, for traders our advice is to remain bullish with the trailing stop loss of 12,790 levels. On the higher side, Nifty may find resistance in the vicinity of 12,300-12,400 levels where we have seen call writing. READ MORE
8:42 AM
Recommendation: Buy
Stop loss:520
Sun Pharma has witnessed a breakout from an inverted head and shoulder pattern (acting as continuous) on December 1, after spending nearly 3 months in a consolidation range. The price surge was accompanied by a noticeable rise in volume adding to the confirmation. Traders shouldn't miss this buying opportunity and create fresh longs in the given range READ MORE
Weekly stock suggestions by Religare Broking
Sun Pharmaceutical Industries Limited
Recommendation: Buy
Target: 575
Stop loss:520
Sun Pharma has witnessed a breakout from an inverted head and shoulder pattern (acting as continuous) on December 1, after spending nearly 3 months in a consolidation range. The price surge was accompanied by a noticeable rise in volume adding to the confirmation. Traders shouldn't miss this buying opportunity and create fresh longs in the given range READ MORE
8:30 AM
FII/FPI & DII trading activity on NSE, BSE and MSEI
8:28 AM
Rupee check
Source: Bloomberg
Topics : Markets Sensex Nifty 50 BSE NSE monetary policy MARKET WRAP
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First Published: Dec 02 2020 | 7:48 AM IST
