Stock Market LIVE: Sensex at new high, above 62,500; BPCL, Reliance shine

From Near 70%, Sri Lanka Sees Inflation at 4%-5% by End 2023

Sri Lanka’s inflation is expected to significantly cool in the coming months after peaking near 70% this year, and the nation may gradually relax a currency band as inflows improve, central bank governor Nandalal Weerasinghe said.

Consumer price gains “will continue on the disinflation path,” Weerasinghe said at a CT CLSA investor forum in Colombo on Monday. He added that inflation is expected to ease to 4%-5% by the end of 2023 and the central bank’s monetary policy transmission is working. As foreign currency inflows improve, the government can also gradually relax a currency band since the nation needs a flexible exchange rate for inflation targeting, he said.

The troubled South Asian economy has raised borrowing costs by 950 basis points this year, taking the key rate to 15.5% as inflation surged to become Asia’s fastest. Prices, however, cooled in October for the first time in a year amid improving domestic supply conditions and tighter monetary policy. (Reuters)

Reliance amongst biggest gainers today; adds 2%

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Dhruva Space looking to raise $20-25 mn in 2 years for satellite infra facilities

Dhruva Space, which has sent two tiny satellites recently, is looking to raise USD 20-25 million in the next one to two years to create infrastructure facilities here to be able to launch satellites weighing up to 100Kg, Abhay Egoor, co-founder and CTO of the city-based startup said. He also said after the successful launch of Thybolt 1 and Thybolt 2-the tiny satellites into space, the firm is now currently working on a satellite weighing about 30 kg which will be broadly catering to communications and scientific applications, on their P30 platform. “We are looking to raise or invest about USD 20 to 25 million over the next 1-2 years where this amount of capital would be used to invest and build an infrastructure facility for assembly, integration and testing of satellites up to 100 kg class. We are exploring setting up the same facility in Hyderabad. We are already in conversation with parties,” Egoor told PTI. (PTI)

Covid-19: India’s active cases down to 5123

India’s active covid case tally fell to 5,123, with 291 new coronavirus infections reported in the last 24 hours, the Union health ministry said in an update on Monday. The country’s total reported cases so far, since the pandemic hit in early 2020, stands at 4.46 crore covid, while the death toll is at 530,614.

Active cases account for 0.01% of total reported infections, while the recovery rate stands at 98.80%, according to the health ministry. (Read More)

Indian stock markets may rally further, signal F&O bets of foreign investors

Overseas investors have stepped up their return to Indian equities, helping power benchmarks gauges to record highs and derivatives data signals more room for the rally. Global funds have bought a net $3 billion of India stocks so far this month, according to Bloomberg-compiled data.

Holdings of foreign investors in long index futures have risen by about six times from their September lows, to 127,000 contracts, while short bets have dropped 76% over the same period to 38,600 lots — the least bearish positioning since April. The spread between outstanding index futures longs and shorts now stands at its widest since June 2021. (Read More)

Oil & Gas index jumps 1.5% with almost all stocks in green;

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Axis Securities Pick of the Week – Cholamandalam Investment & Finance Company (CIFC)

Axis Securities Pick of the Week – Cholamandalam Investment & Finance Company (CIFC)

Outlook & Valuation: CIFC is witnessing increasing disbursements which will help grow its AUM moving forward. The company has managed the Covid-19 pandemic well, thanks to its well-diversified portfolio, robust capitalisation, comfortable liquidity, and cost rationalisation initiatives. The expectation of an increase in the cost of funds, Opex at an elevated level and maintaining NIM in an increasing interest rate scenario would pose a challenge to CIFC. However, management commentary on CIFC growing at a higher rate than the industry because of value growth in terms of inflation and cost of the vehicle as well as growth in market share was encouraging. CIFC with its conservative management, comfortable liquidity position, and diversified portfolio mix is well-placed to ride on the expected demand recovery.

Recommendation: We recommend a BUY rating on the stock with a target price of ₹793/share, implying an upside of 10% from the CMP

Time to bet hard on small caps, says Basant Maheshwari

Calling it the right time to bet on small cap companies, BMS Fund Manager Basant Maheshwari said it will soon launch his ‘BM Small Cap Secular Growth smallcase’ scheme.

Basant Maheshwari announced on twitter the launch of the new scheme and said they will be investing ₹5 lakh every month in it. He also stressed upon the small cap investment being the right choice in the current scenario. (Read More)

Hindalco among the biggest laggards today; sheds more than 2%

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India’s economy likely slowed to annual 6.2% in July-Sept: Reuters Poll

The Indian economy likely returned to a more normal 6.2% annual growth rate in July-September after double-digit expansion in the previous quarter, but weaker exports and investment will curb future activity, a Reuters poll showed.

In April-June, Asia’s third-largest economy showed explosive growth of 13.5% from a year earlier thanks mainly to the corresponding period in 2021 having been depressed by pandemic-control restrictions.

But with the Reserve Bank of India (RBI) now raising interest rates to tamp inflation running above its target range of 2% to 6% target, the economy is set to slow further.

The 6.2% annual growth forecast for latest quarter in a Nov. 22-28 Reuters poll of 43 economists was a tad lower than the RBI’s 6.3% view. Forecasts ranged between 3.7% and 6.5%. (Reuters)

Metal stock trades ex-bonus issue. Brokerage has ‘Buy’ tag

Shares of Maharashtra Seamless started trading ex-bonus on Friday, November 25, 2022. The company last month announced the issue of bonus equity shares of the company in the ratio of 1:1 and fixed record date as Monday, November 28, 2022.

“We have not changed our estimates and only given effect to increase in the no of shares. Consequently, we have revised our target prices from ₹930 to ₹465. Maintain buy,” said brokerage PhillipCapital in a note on Friday. (Read More)

Rupee slips 6 paise to 81.77 against US dollar

The rupee depreciated 6 paise to 81.77 against the US dollar in early trade on Monday, tracking a lacklustre trend in domestic equity markets and a firm American currency overseas.

However, lower crude prices in the international market and fresh foreign fund inflows restricted the rupee’s fall, forex dealers said.

At the interbank foreign exchange, the domestic unit opened weak at 81.81 against the dollar, then gained some ground to quote 81.77, registering a decline of 6 paise over its previous close.

In the previous session on Friday, the rupee weakened by just one paisa to end at 81.71 against the dollar. (PTI)

Metal index under pressure early in the day; sheds 1% with most stocks in red

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India New Issue-IDFC First Bank to issue 10-yr tier-II bonds -traders

IDFC First Bank plans to raise at least 5 billion rupees ($61.2 million) through Basel-III compliant tier-II bonds maturing in 10 years, three merchant bankers said on Monday.

The lender will offer a coupon of 8.70% on this issue, for which it has invited bids from investors and bankers on Tuesday between 11:00 a.m. and 12:30 p.m. IST on the National Stock Exchange’s electronic platform.

The issue also has a greenshoe option to retain an additional 10 billion rupees and a call option at the end of the fifth year from the allotment date. (Reuters)

Hero MotoCorp shines in early trading, gains 2.5%

Hero MotoCorp on Friday announced that it will be increasing the prices of its motorcycles and scooters soon. The price hike will vary as per specific models and markets and will be effective from December 1, 2022. As announced by the company, products will see a price rise of up to ₹1,500. This will be the fourth time Hero Motorcycles will get a price hike. The last price increase was announced in September this year. The price was increased by up to ₹1,000 then.

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Uniparts India IPO: GMP steady ahead of subscription opening this week

Engineering systems and solutions provider Uniparts India on Friday said it has set a price band of ₹548-577 a share for its ₹836-crore initial public offering (IPO). The three-day initial share sale will open for public subscription on November 30 and conclude on December 2. The bidding for anchor investors will open on November 29.

Uniparts India IPO is entirely an Offer for Sale (OFS) of 14,481,942 equity shares by promoter group entities and existing investors. Since the IPO would be entirely an OFS, the company will not receive any proceeds from the public issue. At the upper end of the price band, the public issue is expected to fetch ₹836 crore. (Read More)

Indices fall at open as Sensex sheds 100 pts and Nifty 40

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Axis Securities recommendation on Star Cement: Capacity Expansion to Drive Growth; Outlook Remains Positive

Axis Securities has issued Star Cement – Annual Analysis: cement demand is expected to be robust both in North-East and East regions driving the volume growth for the company. Its Siliguri grinding unit is ramping up well and higher capacity utilization of the unit will help the company in improving its fixed cost absorption and will also aid in its volume growth moving ahead. With better cement demand, higher pricing, stabilization of the Siliguri Grinding unit, and cost optimization measures(12mw WHRS plant) undertaken by the company, we foresee Star Cement reporting decent performance moving ahead. The stock is currently trading at 9x FY23E and 8x FY24E EV/EBITDA. We retain our BUY rating on the stock and value the company at 9x FY24E EV/EBITDA to arrive at a TP of ₹115/share, implying an upside of 11% from the CMP.

Sensex is marginally in red at the preopen session; Paytm, ONGC, Hero MotoCorp in focus

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Japan’s Nikkei sinks as China COVID worries weigh; tech shares slide

Japan’s Nikkei share average slid for a second day on Monday, as protests in China over renewed COVID-19 clampdowns hurt investor sentiment, while tech stocks fell in line with Wall Street peers.

The Nikkei ended the morning session down 0.62% at 28,107.79, extending its 0.35% decline from Friday, as the benchmark index retreated from a more than two-month high of 28,502.29 hit the day before.

Of the Nikkei’s 225 components, 191 fell versus 23 that rose and 11 that were flat.

The broader Topix sank 0.79%.

Early declines for Japanese stock indexes accelerated after Chinese equity markets opened sharply lower, with Hong Kong’s Hang Seng tumbling as much as 4.2% at one point.

A wave of protests unprecedented under Xi Jinping’s rule has swept China, including clashes with police in Shanghai, after the government doubled down on pandemic restrictions amid a surge in COVID cases. (Reuters)

Promoter raises stake in ₹10 FMCG stock after rebound from 52-week low. Time to buy?

Mishtann Foods share price is giving sharp upside moves after hitting a 52-week low of ₹7.80 apiece in July 20220. While this rebound in ₹10 stock is catching the attention of retail investors, promoters are also looking to cash in this big opportunity. Like retail investors company promoter Hiteshkumar Patel is also among the bargain hunters of this stock. The company promoter has been busy doing bottom-finishing in the scrip since 15th November 2022 raising his stake in the FMCG company to 49.37 per cent. (Read More)

Ashika Stock Broking and Geojit Financial Services views on today’s market

Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed a small negative candle on the daily chart with a lower shadow, reflecting a breather in the market on the last trading day of the week though presence on the higher high-low formation and positive market breadth continues to maintain a bullish undertone in the market. It seems that the Index is at that phase where a prolonged consolidation might be in the making and forming a higher base, setting itself equipped to eye the sought-after level of 18900 in the near term. The present price structure indicates the market has halted its slide taking support from its 20dma and the lower area of the gap-up region and 18050-18100 might be the elevated bottom for the market followed by 17950 which coincides with a 23.6% retracement of the entire rally since Oct’22. A positive stance in the market would remain due to sharp reversals in the Dollar index, US yields have helped to taper down anxiety around further aggressive rate hike and drop in crude oil prices which is supportive for Indian Equities. Against that backdrop, a sustainable move above 18,600 is likely to pull the 50-scrip index towards a milestone of 18900-18950 in the near term. During the day, Nifty is likely to open on a negative note tracking weak morning cues hence intraday dips towards 18400-18440 need to be utilised for an upside target of 18650 followed by 18900.

Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: There are two positives which can impart resilience to the ongoing rally in the market: One, the steady decline in crude which has taken Brent crude to below $82. Two, the steady FPI buying ( ₹31630 crores so far in November) particularly in fundamentally strong segments like financials, IT, autos and capital goods. These positives notwithstanding markets are likely to be in wait-and-watch mode for the Fed chief’s speech on Wednesday. Any hawkish statements from Powel will be negative since markets have factored in slower rate hikes taking the terminal rate around 5%. The high futures premium is indicative of the underlying bullishness in the market.

Reliance Securities Stock in Focus for Today: Indus Towers

STOCK IN FOCUS

Indus Towers (CMP 203): In view of better business prospects, likely increase in infra spend by telecom operators, bigger opportunity from 5G rollout and attractive dividend yield of ~5-6%, we have BUY on Indus Towers with a Target Price of Rs225, valuing the stock at a P/E multiple of 10x FY24E earnings.

Intraday Picks

POLYCAB (PREVIOUS CLOSE: 2550) BUY

For today’s trade, long position can be initiated in the range of ₹2520-

2535 for the target of Rs.2610 with a strict stop loss of ₹2510.

TATAMOTORS (PREVIOUS CLOSE: 433) BUY

For today’s trade, long position can be initiated in the range of ₹427-

430 for the target of Rs.445 with a strict stop loss of ₹425.

ZYDUSLIFE (PREVIOUS CLOSE: 402) BUY

For today’s trade, long position can be initiated in the range of ₹395-

398 for the target of Rs.414 with a strict stop loss of ₹392.

Rupee seen lower at open on yuan-led losses on Asian currencies

The Indian rupee is expected to open lower versus the dollar on Monday as protests in China against COVID restrictions dented demand for Asian currencies and shares.

The rupee is tipped to around 81.85 per U.S. dollar in early trades, against 81.6850 in the previous session.

The offshore yuan dropped 0.6% to 7.24 to the dollar following rare protests in major Chinese cities against the country’s strict zero-COVID policy.

After opening lower, the rupee should receive “decent” support at around the 81.90 levels, a trader at a Mumbai-based bank said. (Reuters)

Stocks to Watch: Paytm, Adani Transmission, Hero MotoCorp, Coal India, ONGC, TIL Ltd, Muthoot Finance, L&T Finance, Gateway Distriparks, Venus Pipes

Valecha Engineering and Wabury will be among the stocks in focus as they will be declaring their September quarter earnings today. (Read More)

Bitcoin, ether, Solana, other crypto prices today plunge, while dogecoin surges 6%

In cryptocurrencies, the world’s largest and most popular digital token Bitcoin’s price today was trading more than 2% lower at $16,129. On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, also fell by more than 4% to $1,162.

The global cryptocurrency market cap today remained below the $1 trillion mark, as as it was down over 2% in the last 24 hours to $852 billion, as per the data by CoinGecko. (Read More)