Sensex gains 227 pts, ends above 44K, Nifty settles at 12,938; M&M up 11%
All that happened in the markets today
 "BSE (Photo credit: Kamlesh Pednekar)")
BSE (Photo credit: Kamlesh Pednekar)
8:57 AM
>> US Dollar rebounded this Wednesday morning in Asian trade and could cap gains.
>> The Rupee could likely open around 74.45-74.48 per dollar compared with 74.46 at close on Tuesday.
>> RBI continues to mop up fund inflows and could limit appreciation.
>> Resistance is at 74.65-74.78 & support is at 74.30-74.10 levels. USD-INR Spot pair is expected to trade in a range of 74.20-74.70 levels.
Currency Outlook :: Reliance Securities
>> The Indian Rupee could start on a flat note today as against the greenback as rise in Covid-19 cases in Europe and the US offset positive sentiments surrounding the potential vaccine.
>> US Dollar rebounded this Wednesday morning in Asian trade and could cap gains.
>> The Rupee could likely open around 74.45-74.48 per dollar compared with 74.46 at close on Tuesday.
>> RBI continues to mop up fund inflows and could limit appreciation.
>> Technically, USD-INR Spot pair retreated from 200-DMA which is placed at 74.57 levels. Below this level, we could see downside pressure in coming sessions.
>> Resistance is at 74.65-74.78 & support is at 74.30-74.10 levels. USD-INR Spot pair is expected to trade in a range of 74.20-74.70 levels.
8:53 AM
NEWS ALERT :: Cipla signs licensing agreement with Multi G for distribution of their Covid-19 Rapid Antibody test kit
>> Distribution will be done across most Emerging markets and Europe
Alert: Multi G is a Belgium-based firm
Alert: Multi G is a Belgium-based firm
8:48 AM
Weekly stock picks by Ajit Mishra of Religare Broking
Bata India Limited
Recommendation: Buy
Target: Rs 1,490
Stop loss: Rs 1,320
Bata India has been trading in a range for the last seven months, after a sharp slide from its record high. It has made several attempts to surpass the hurdle of the long-term moving average(200 EMA) in the recent past but failed to sustain above the same however it kept forming a higher base. Indications are now in the favor of a steady up move from hereon. We thus advise initiating fresh longs within the mentioned levels. READ MORE
8:45 AM
NEWS ALERT :: DLF partners with GIC to launch housing projects in Delhi
(Via NewsRise news Agency)
8:43 AM
BROKERAGE VIEW :: MOFSL on Repco Home Finance
CMP: Rs 249 | TP: Rs 325 (+31%) | Reco: Buy
>> Repco Home Finance’s 2QFY21 PBT was up 6% YoY at Rs 1.08b. On the back of a lower tax rate (1.3%) in the base quarter, PAT declined 20% YoY to Rs 808m. The quarter was characterized by a gradual pick up in business volumes, improvement in spreads, and focus on collections.
>> The company created Rs 72m in provisions in 2QFY21. Collection efficiency stood at 93% in Sep’20.
>> On the back of strong spreads and conducive liquidity environment, we upgrade our estimates by 10-12% for FY21E/FY22E. We expect a RoE of 14-15% over FY21-23E and a RoA of 2.4%. We expect the focus on collections to take precedence over growth in the near term. Maintain Buy
>> Repco Home Finance’s 2QFY21 PBT was up 6% YoY at Rs 1.08b. On the back of a lower tax rate (1.3%) in the base quarter, PAT declined 20% YoY to Rs 808m. The quarter was characterized by a gradual pick up in business volumes, improvement in spreads, and focus on collections.
>> The company created Rs 72m in provisions in 2QFY21. Collection efficiency stood at 93% in Sep’20.
>> On the back of strong spreads and conducive liquidity environment, we upgrade our estimates by 10-12% for FY21E/FY22E. We expect a RoE of 14-15% over FY21-23E and a RoA of 2.4%. We expect the focus on collections to take precedence over growth in the near term. Maintain Buy
8:40 AM
BROKERAGE VIEW :: MOFSL on Telecom
>> As per media reports, IDEA is exploring a 15-20% price hike in Dec’20 or Jan’21. We expect BHARTI and RJio to follow suit as both players may not be keen to take the lead on a price hike and face risk of a market share loss or a negative consumer reaction.
>> We have not factored in a material price hike in our model at present. A 20% price hike should increase BHARTI/RJio/IDEA’s ARPU to Rs 178/Rs 167/Rs 140 in FY22E. At 70% incremental margin, EBITDA in FY22E should touch Rs 559b/Rs 559b/Rs 142b, a 16%/22%/30% increase at the consolidated level.
>> Without any tariff hike, we expect BHARTI/RJio to generate post interest FCF of Rs 64b/-Rs 64b, including one-time spectrum renewal cost of Rs 130b/Rs 280b.
>> We have not factored in a material price hike in our model at present. A 20% price hike should increase BHARTI/RJio/IDEA’s ARPU to Rs 178/Rs 167/Rs 140 in FY22E. At 70% incremental margin, EBITDA in FY22E should touch Rs 559b/Rs 559b/Rs 142b, a 16%/22%/30% increase at the consolidated level.
>> Without any tariff hike, we expect BHARTI/RJio to generate post interest FCF of Rs 64b/-Rs 64b, including one-time spectrum renewal cost of Rs 130b/Rs 280b.
>> Although this should provide IDEA with additional cash flow, it would still not be enough to fulfill its obligations. Our workings suggest that IDEA needs 74% ARPU hike to achieve EBITDA of Rs 300b to sufficiently furnish its complete cash obligations sustainably in FY23, including deferred spectrum payments.
>> We continue to remain bullish on BHARTI/RJio with a target price of Rs 650/Rs 900 (for its 66% stake). We continue to maintain IDEA under review due to its liquidity crunch and limited clarity on business continuity.
>> We continue to remain bullish on BHARTI/RJio with a target price of Rs 650/Rs 900 (for its 66% stake). We continue to maintain IDEA under review due to its liquidity crunch and limited clarity on business continuity.
8:36 AM
Market Strategy by Motilal Oswal
>> The Sep-quarter (2QFY21) corporate earnings season was a blockbuster one, with big beats and upgrades across our Coverage Universe. With an upgrade (>5%) to downgrade ratio (<-5%) of 4:1, this has by far been the best earnings season in many years. 63% of the companies in our MOFSL Coverage Universe beat 2QFY21 estimates, while 18% reported below-est. results. This has resulted in the first material earnings upgrade for Nifty EPS estimates in many years. More importantly, corporate commentaries across the sector suggest continued demand recovery in 3QFY21, underpinned by a healthy start to the festive season.
>> Our FY21/FY22E Nifty EPS estimates have been revised up 9%/3.9% to INR497/INR677 (prior: INR456/INR651). We now expect FY21 Nifty EPS to grow 6.9% YoY. The breadth of earnings revision was positive, with an upgrade to downgrade ratio of >4:1. 107 companies in the MOFSL Univer
>> Our FY21/FY22E Nifty EPS estimates have been revised up 9%/3.9% to INR497/INR677 (prior: INR456/INR651). We now expect FY21 Nifty EPS to grow 6.9% YoY. The breadth of earnings revision was positive, with an upgrade to downgrade ratio of >4:1. 107 companies in the MOFSL Univer
8:33 AM
Two stock ideas by HDFC Securities
BUY ARVIND FASHION (136): | Target Rs 151 | Stop-loss: Rs 129 | Return: 11%
The stock price has broken out on the daily charts with a surge in the volumes to close at two months high. Short-term trend has turned positive as the stock price is trading above its 5 and 20 day-EMA. Oscillators and Momentum Indicators like RSI, MFI and MACD are showing strength in the stocks. Therefore, we recommend buying Arvind Fashion at CMP of Rs 136 and average at 133 for the target of 151, keeping a Stop Loss at 129 READ MORE
8:24 AM
FII/FPI & DII trading activity on NSE, BSE and MSEI
8:20 AM
Rupee check
Source: Bloomberg
8:14 AM
Oil falls as big build in US crude stockpiles raises spectre of supply glut
>> Oil prices fell on Wednesday after a bigger-than-expected build in US crude stockpiles stoked fears for weak fuel demand and a potential supply glut, but hopes that OPEC and its allies will postpone a planned January increase to oil output braked losses.
>> Brent crude futures for January LCOc1 dropped 14 cents, or 0.3%, to $43.61 a barrel having lost 0.2% on Tuesday. US West Texas Intermediate crude for December CLc1 slid 25 cents, or 0.6%, to $41.18 a barrel, reversing a 0.2% gain on Tuesday.
(Source: Reuters)
(Source: Reuters)
8:10 AM
SGX Nifty update
>> At 8:09 am, the index was at 12,886.5 level, down 11 points or 0.09 per cent
8:08 AM
Wall Street closes lower as shutdown worries loom
Source: Reuters
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First Published: Nov 18 2020 | 7:31 AM IST
