Morning Update : Sensex and Nifty at day’s lows; major losers include M&M, L&T, and Adani Enterprises. Nov-20

Morning Update :– IT, real estate, and pharmaceuticals are all up 0.5 percent, while car, bank, and capital goods are all down. The NSE’s most active stocks include Tata Investment Corporation, HDFC Bank, Axis Bank, Nykaa, and Bajaj Finance.

Sensex –    Falls    -120          Points at      65674

Nifty 50 –    Falls     -19           Points at     19712

 Indian Market 

FII AND DII 

 Indian Market News

1. Bandhan Bank, Axis Bank, and Federal Bank drove the Nifty Bank index down 0.26 percent about 43,500.
2. Oberoi Realty, Prestige Estate, and Godrej Properties boosted the BSE Realty index by 0.6 percent:
3. CFM Mozambique awards RITES a tender for ten diesel electric locomotives.
4. Talbros Automotive receives a multi-year contract of Rs 580 crore.
5. ESAF SFB’s net profit in the second quarter increased 145% to Rs 140 crore.
6. GIFT Nifty shows a flat start, while the USFDA sends Cipla a warning letter
7. Wall Street barely increases as traders absorb previous gains, according to the Fed
8. Asian markets are divided, with the Hang Seng up 0.5% and the Straits Times down 0.5%.
9. Oil continues to rise as OPEC+ considers further cutbacks.
10. The dollar is weakening as attention shifts to Fed easing
11. DreamFolks strengthens its presence in Southeast Asia by entering Malaysia.
12. TCS and the Australian stock exchange cooperate to update the trading software, which has been overdue.
13. Cipla receives a warning letter about the Pithampur manufacturing site from the USFDA.
14. FPIs become buyers and purchase stocks worth Rs 1,433 crore through mid-November

Global markets

Gift Nifty

With a loss of 15 points, the GIFT Nifty suggests a slightly negative start for the overall index. After peaking at 19,852 points, GIFT Nifty futures were trading at 19,800 points.

US Markets

U.S. equity futures opened unchanged as the week entered the shortened Thanksgiving holiday week. Major averages, including the Dow Jones Industrial Average, S&P 500, and Nasdaq 100, had their third consecutive winning performance. The S&P 500 closed the week higher by 2.2%, the Dow added 1.9%, marking the first three-week streak since July. The Nasdaq Composite finished the week higher by 2.4%, its best week since June. The yield on the benchmark U.S. 10-year Treasury reached its lowest level since September 20 and some traders expect Treasury yields to continue competing with equities. Market bulls remain optimistic, especially after cooler-than-expected U.S. inflation data calmed investors’ nerves and indicated that the Federal Reserve could stop raising interest rates.

European Markets

European markets closed higher on Friday, with the Stoxx 600 index rising around 1%. Financial services and mining stocks saw gains of 1.7% and 1.8%, respectively. Generali, an Italian insurance and asset management company, is the only major corporate due to report results. UK retail sales fell 2.7% YoY, with clothing and household purchases being the hardest hit. Inflation in the eurozone also showed a sharp slowdown, with October’s reading at 2.9% compared to 4.3% in September. Retail sales reached their lowest level since early 2021.

Asian Markets

Asia-Pacific markets began the week higher after major bourses ended lower in the previous session. Investors were watching for changes to China’s benchmark lending rates, with the People’s Bank of China’s one-year loan prime rate at 3.45% and the five-year benchmark loan rate at 4.2%. Hong Kong stocks led declines in Asia-Pacific on Friday, as shares of Alibaba plunged after the Chinese e-commerce giant announced it would not proceed with the full spinoff of its cloud group. Japan’s markets extended gains on Friday, with the Nikkei 225 up by 0.12% and the Topix climbing 0.15%. South Korea’s Kospi rose 0.13%, while the Kosdaq saw a larger gain of 0.35%.

Oil Prices

Oil prices rose after sinking 5% to a four-month low due to concerns about burgeoning non-OPEC supply and cooling demand. The West Texas Intermediate contract for December rose 3.03% to $75.11 per barrel, while the Brent contract for January rose 3.2% to $79.91 a barrel. Both benchmarks have lost around a sixth of their value over the last four weeks, and prices are on track for their fourth straight week of losses. Goldman Sachs analysts noted that non-core OPEC supply has been stronger than expected.

Dollar Index

The Dollar index traded 0.51 percent lower in futures at 103.82, whereas the value of one dollar hovered near Rs 83.29.

Gold Prices

Gold prices remained steady on Friday, but registered a significant weekly gain due to weakened dollar and Treasury yields and growing expectations that the US Federal Reserve is done with its monetary policy tightening. Spot gold was steady at $1,980.13, up 2.3% this week, while U.S. gold futures settled down 0.1% at $1,984.70. Everett Millman, chief market analyst at Gainesville Coins, suggests that gold could continue to rally, but prices need to move lower before the next leg-up.

News updates

• TCS, Infy lead as 7 of India Inc Top 10 add Rs 1.50 lakh cr to market value

The aggregate market valuation of seven of the top 10 valued corporations gained Rs 1,50,679.28 crore last week, with IT majors Tata Consultancy Services (TCS) and Infosys emerging as the largest gainers, amid an overall upbeat trend in stocks.

Last week, the BSE benchmark surged 890.05 points or 1.37 percent. Reliance Industries, TCS, HDFC Bank, Infosys, Hindustan Unilever, ITC, and Bharti Airtel were the gainers, while ICICI Bank, State Bank of India, and Bajaj Finance saw erosion from their market price. The valuation of TCS soared Rs 62,148.99 crore to Rs 12,81,637.63 crore, emerging as the greatest gainer from the top 10 pack.

• FPIs turn buyers; invest Rs 1,433 crore in equities till mid-November

After prolonged selling in the last two and a half months, FPIs bought Indian shares worth Rs 1,433 crore thus far in November, mainly due to the decrease in US treasury bond yields and crude oil prices. Foreign Portfolios Investors (FPIs) were net sellers to November 15. However, they reversed the selling trend by infusing money around November 16-17, data with the depositories showed.

“The recent Christmas season in India has been considered as a contributing reason to the revived interest of FPIs in the Indian market. Alongside this, a reduction in US Treasury bond yields and a decline in crude oil prices reduced some of the pressures that triggered the sell-off earlier,” Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Adviser India, said. “Some intermittent corrections in the markets could have also provided buying opportunities in a few pockets,” Srivastava added.

• Six businesses to go D-Street this week to seek Rs 7,400 crore from public

The lively primary market is likely to simmer in the week commencing November 20 with six corporations ready to sweep up roughly Rs 7,400 crore. The IPOs next week include Tata Technologies, the first Tata Group firm to go public over 20 years, and Indian Renewable Energy Development Agency, the first government selling since LIC in May 2022.

Indian Renewable Energy Development Agency IPO: IREDA, the Mini Ratna government entity, will be the first of five initial public offerings (IPOs) in the mainboard category, opening for subscription on November 21 and closing on November 23. The price band for the offer has been defined at Rs 30-32 per share.

• Ousted OpenAI CEO Altman discusses probable return, mulls new AI venture

Sam Altman, the freshly fired CEO of OpenAI, is contemplating a possible return to the company behind the ChatGPT bot even as he explores establishing a new artificial intelligence (AI) startup, a person knowledgeable on the situation said on November 18.

A day after the board fired him in a surprise move that rocked the tech world, Altman was talking with OpenAI executives about improving the company’s governance structure while he discussed with some core OpenAI researchers and others loyal to Altman how they could start a new AI company, the person said.

The chances of a return or a restart for Altman, viewed by many as the face of generative AI, are in flux, said the person, who asked not to be named because the source was not allowed to talk on behalf of the parties concerned. OpenAI and Altman did not reply to requests for comment.

Stock in News

Aurobindo Pharma: Units I and III of APL Healthcare’s formulation manufacturing facility in Telangana underwent a pre-approval inspection (PAI) by the US Food and Drug Administration (US FDA), and the examination resulted in zero observations. “No Action Indicated (NAI)” marked the conclusion of the inspection, which took place between November 13 and 17. Aurobindo Pharma owns APL Healthcare as a subsidiary.

Exide Industries: In order to resolve lawsuits that had been outstanding since 2006, the High Court issued a decree that recorded the conditions of the Settlement Agreement signed by the parties, Exide Industries, Vertiv Company Group Limited UK (VCGL), and Vertiv Energy (VEPL). Both VCGL and VEPL consented to give up all rights to the aforementioned CHLORIDE mark in favour of Exide and to refrain from using it in India, either directly or indirectly.

SBI Cards and Payment Services: The credit card issuer announced that the Reserve Bank of India’s tightening of regulations on consumer credit and bank credit to NBFCs on November 16 would affect the capital adequacy ratios for banks and NBFCs, resulting in a roughly 4% reduction for SBI Cards.

Cipla: The pharmaceutical business granted First Rand Bank, South Africa, a facility demand guarantee of ZAR 945 million in exchange for general banking facilities to be extended to Medpro Pharmaceutica (Pty) Ltd. In South Africa, Medpro is a step-down wholly owned subsidiary of Cipla.

RITES: CFM Mozambique has awarded RITES a $37.68 million contract for 10 diesel-electric locomotives with incidental services. However, the business did not win the contract for 300 high-side waggons.

NBCC (India): The Institute of Chartered Accountants of India (ICAI) and NBCC have inked a memorandum of agreement. The planning, designing, and construction of ICAI’s buildings, as well as renovation projects in several Indian locations, have been awarded. NBCC will finish the work for a PMC fee equal to 6.5 percent of the project’s total cost.

Larsen & Toubro: A penalty of 4,86,80,120 QAR (about Rs 111.31 crore) for the FY17 tax period and 5,58,22,856 QAR (about Rs 127.64 crore) for the FY18 tax period has been levied by the General Tax Authority of Qatar. The corporation has filed an appeal against the imposition of this penalty because it feels it is arbitrary and unnecessary.

Kotak Mahindra Bank: The private sector lender has received an order from the Maharashtra government’s Department of Goods and Service Tax, which levies a penalty of Rs 1,64,936 and interest for allegedly overclaiming GST credit and failing to pay GST under reverse charge in some cases during the assessment period of July 2017–March 2018.

Vedanta: The company’s long-term bank facilities and debt instruments were downgraded by CRISIL Ratings from AA+ to AA, and they were moved from “Rating Watch with Negative Implications” to “Rating Watch with Developing Implications.” CRISIL confirmed its A1+ rating for the company’s short-term debt instruments and added a “Rating Watch with Developing Implications” to these ratings. The mining company has also been issued a GST demand order by the Central Excise Commissionerate, Rourkela, for the sum of Rs 1,38,54,401, plus interest as applicable. Furthermore, if the corporation fails to satisfy the initial demand, it may be subject to a penalty equal to 10% of the demand that was issued. After considering the case’s merits, the business chose to pursue an appeal under the GST Law with the Appellate Authority. The appeal draught is being worked on and will be submitted when it’s ready.

Mazagon Dock Shipbuilders: Effective November 20, the state-owned shipbuilding business will no longer be subject to dividend payments. For the current fiscal year, an interim dividend of Rs. 15.34 per share is being paid. The following companies will trade ex-dividend on the same day: Aurobindo Pharma, Cochin Shipyard, Anupam Rasayan India, Balrampur Chini Mills, GMM Pfaudler, Bella Casa Fashion & Retail, Dolat Algotech, GM Polyplast, and Kaveri Seed Company.

Delhivery: 1.83 crore equity shares, or 2.49 percent of paid-up equity in the logistics company, were sold by Softbank through its company SVF Doorbell (Cayman) through open market transactions at an average price of Rs 403.51 per share. The amount of the stake sale was Rs 738.64 crore. As of the end of September 2023, SVF owned a 14.46 percent share in Delhivery.

Poonawalla Fincorp: The Assistant Commissioner of Central Tax, Ameerpet GST Division, has assessed a penalty order of Rs 2.87 lakh against the non-banking financial firm for over-input of GST. This penalty is applicable for FY18, FY19, and FY20.

Birla Corporation: As of November 17, the American Petroleum Institute has authorised Birla Cement Works, the company’s cement facility in Chanderia, to use the official API monogram on manufactured products, namely API Well Cement Class G at Grade(s) HSR. To meet the needs of the oil exploration organisations, the business plans to take part in the tender process for the sale of API Well Cement Class G at Grade(s) HSR.

Oriental Rail Infrastructure: Indian Railways’ Rail Coach Factory (RCF), Kapurthala, has placed orders with Oriental Rail totaling Rs 19.92 crore. For AC 3-tier and 2-tier coaches, the business will produce and provide 277 sets of seats and beds.

Sunrest Lifescience: On November 20, Sunrest Lifescience, a provider of personal care and healthcare products, will list its equity shares on the NSE Emerge. Each share is being issued for Rs. 84. The trade-for-trade component will allow trading of its equity shares.

Bondada Engineering: Dinesh Engineers has given the company work orders totaling Rs 32.72 crore. Bondada will provide all the accessories needed for 40-meter towers.

Electrosteel Castings: On November 24, the company plans to perform maintenance and repairs on its blast furnace at its Khardah facility. After three to four weeks, it is anticipated that the blast furnace will be operating. During this time, the company’s other divisions will run as usual.

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