Sensex Today Gains 211 Points | Tyre Stocks Rally while Metals Drag | 4 Reasons Why Indian Share Markets Hit Record High
Closing
After opening the day lower mirroring weakness in Asian peers, Indian share markets staged a comeback and ended the trading session on an optimistic note.
Benchmark indices Sensex and Nifty hit new records following heavy gains from Reliance and other oil marketing companies as crude prices fell.
Adding to sentiment was a Reuters poll showing the Indian economy likely returned to a more normal 6.2% annual growth rate in the quarter ended September, after clocking double-digit expansion in the previous quarter.
India's GDP data is due later this week on Wednesday.
At the closing bell, the BSE Sensex stood higher by 211 points (up 0.3%).
Meanwhile, the NSE Nifty closed higher by 50 points (up 0.3%).
Reliance Industries, Nestle, and Asian Paints were among the top gainers today.
Tata Steel, HDFC Bank, and Bharti Airtel, on the other hand, were among the top losers today.
The SGX Nifty was trading at 18,700, up by 42 points, at the time of writing.
Broader markets settled on a firm note with smallcaps and midcaps both rising in line with benchmark indices.
The BSE MidCap gained 0.8% while the BSE SmallCap index ended 0.7% higher.
{inlineads1}Sectoral indices ended on a mixed note with stocks in the energy sector and auto sector witnessing most of the buying.
While metal stocks and telecom stocks witnessed selling.
Chartist Brijesh Bhatia believes the rally in energy stocks could continue for the next couple of months.
Shares of TVS Srichakra and ION Exchange hit their 52-week highs today.
Continuing the downtrend, Paytm share price fell 4% today after the Reserve Bank of India (RBI) asked the company's subsidiary Paytm Payment Services not to onboard new online merchants. This was in response to an application the company had filed for a payment aggregators license.
Meanwhile, IEX share price fell over 2% after its board approved share buyback plan worth Rs 980 million.
If you're interested in knowing which shares to trade, read our guide on the best intraday stocks for today.
Asian share markets ended on a negative note as investors worried about rising Covid-19 cases in the region.
The Hang Seng fell 1.6% while the Shanghai Composite ended 0.8% lower. The Nikkei ended down by 0.4%.
US stock futures are trading on a negative note today tracking China concerns. Dow futures are trading down by 0.7% while Nasdaq futures are down by 1% or 130 points.
The rupee is trading at 81.65 against the US$.
Gold prices for the latest contract on MCX are trading up by 0.2% at Rs 52,635 per 10 grams.
Meanwhile, silver prices for the latest contract on MCX are trading up by 0.2% at Rs 61,795 per kg.
4 reasons why Indian share market is rising
#1 Fed commentary -
Last week on Wednesday, the US Fed presented dovish minutes from their November policy meeting which helped support stocks globally.
Investors are of the view that the US fed will slow down the pace of rate hikes.
#2 FII & DII buying -
In November so far, FIIs have poured in around US$4 billion (bn) of funds.
Meanwhile, DIIs have also consistently bought the dip in recent months. Although they been taking advantage of the FII inflow in November to turn net sellers.
#3 Dollar's weakness, India's gain -
After slipping below the 83-mark against the US dollar in recent months, the domestic currency rupee is now above the 82-mark.
The US dollar index, which hit multi-year high of 114.78, has now cooled down to 106 levels.
#4 Falling crude oil -
Crude oil prices have fallen to US$80 a barrel mark, its lowest level since January this year. A fall in oil prices is positive for India's oil import dependent economy.
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Nithin Eapen is a long-term crypto investor. So, if you want to learn about the world of crypto, this is a must listen.
PSU Stock Doubles in Less than a Month
Share price of Rail Vikas Nigam (RVNL) hit a new high of Rs 80 today as the stock rallied 10%. So far in November 2022, the stock price has almost doubled from a level Rs 40.
The company and its subsidiaries are engaged in the business of implementing various types of rail infrastructure projects assigned by Ministry of Railway (MoR).
The sharp rise in one month comes on the back of RVNL securing multiple orders. On 11 November, RVNL announced that the company has been declared successful bidder in an international project in Maldives.
This is a strategic project of Government of India and the estimated project cost is approximately Rs 15.4 billion (bn).
Prior to this, on 4 November, the company said that it was awarded a contract worth of Rs 1.4 bn for increasing speed potential to 160 KMPH in Pradhankhanta - Bandhua section of Dhanbad Division under East Central Railway.
Note that India is on its way to construct more national highways and rail lines in the decade between 2015-2025 than it has cumulatively done between 1950 and 2015. Huge capex announcements have already been made and more are in the offing.
As a result, railway stocks have seen an up move in recent weeks.
For instance, IRCON shares have gained more than 50% while Rites is up 40% in less than three months.
{adoai1}
Latest on IDBI Bank Privatisation
Moving on to news from the banking sector, IDBI Bank will maintain the status of private sector bank after its strategic sale. In addition, it will not be subject to the norms applicable to a state-run company after its privatisation.
On Sunday, the finance ministry clarified that an appropriate dispensation for IDBI Bank's new owner to achieve minimum public shareholding (MPS) is under consideration.
The winning bidder will have no restriction on undertaking corporate restructuring of the subsidiaries of IDBI Bank.
The deadline to submit expression of interest (EoI) is 16 December.
The successful bidder will have to make an open offer for the acquisition of 5.28% of the public shareholding.
Once IDBI Bank is disinvested, the DIPAM noted that the government or the LIC will not be obligated to infuse capital into the lender.
Approval for 18 Insurance Companies in Pipeline
Moving on, the insurance regulator is in favour of issuing composite licenses, which is a common license to operate in life and general insurance market, IRDAI Chairman Debasish Panda told in an interview.
He said that the last approval for a new insurance company was granted in 2017.
Reportedly, 18 more insurance companies are in the pipeline, looking for licenses.
The Insurance Regulatory and Development Authority of India (IRDAI) has suggested the government to ease the minimum capital requirement of Rs 1 bn and permit the regulator to fix the amount depending upon business plans of the prospective company.
{inlineads3}If this is done, it would allow entry of small, specialised and niche players, which could help in increased insurance penetration and density in the country.
Since insurance stocks interest you, check out the top insurance companies in India on Equitymaster stock screener.
And to know what's moving the Indian stock markets today, check out the most recent share market updates here.
Sensex Today Gains 100 Points | Reliance, Asian Paints Top Gainers | Metal Stocks Bleed while Auto Stocks Rise
10:30 am
Asian share markets are lower today as rare protests in major Chinese cities against the country's strict zero-Covid policy raised worries about management of the virus in the world's second-largest economy.
The Nikkei is down 0.5% while the Hang Seng fell 1.9%. The Shanghai Composite is trading lower by 1%.
In US stock markets, Wall Street indices closed lower on Friday with pressure from Apple Inc in a subdued holiday-shortened trading session, as investors watched Black Friday sales and Covid-19 cases in China.
The Nasdaq slipped for the third day and lost 0.5% while the Dow Jones ended 0.5% higher.
{inlineads1}Here's a table showing performance of US indices and US stocks on Friday.
| Stock/Index | LTP | Change ($) | Change (%) | Day High | Day Low | 52-Week High | 52-Week Low |
|---|---|---|---|---|---|---|---|
| Alphabet | 97.6 | -1.2 | -1.23% | 98.9 | 97.5 | 152.1 | 83.5 |
| Apple | 148.1 | -3 | -1.96% | 148.9 | 147.1 | 182.9 | 129.0 |
| Meta | 111.4 | -0.8 | -0.74% | 112.7 | 111.0 | 352.7 | 88.1 |
| Tesla | 182.9 | -0.3 | -0.19% | 185.2 | 180.6 | 402.7 | 166.2 |
| Netflix | 285.5 | -6 | -2.04% | 289.2 | 284.2 | 676.4 | 162.7 |
| Amazon | 93.4 | -0.7 | -0.76% | 94.4 | 93.1 | 181.7 | 85.9 |
| Microsoft | 247.5 | -0.1 | -0.04% | 248.7 | 246.7 | 344.3 | 213.4 |
| Dow Jones | 34,347.0 | 153 | 0.45% | 34,386.5 | 34,199.6 | 36,952.7 | 28,660.9 |
| Nasdaq | 11,226.4 | -59 | -0.52% | 11,261.6 | 11,206.4 | 16,212.2 | 10,088.8 |
Back home, Indian share markets opened on a negative note following the trend on SGX Nifty.
Benchmark indices reverted losses after opening in red today, following Asian peers as news of growing unrest in China over Covid restrictions hit sentiment.
The BSE Sensex is trading up by 91 points. Meanwhile, the NSE Nifty is trading higher by 22 points.
Reliance and Asian Paints are among the top gainers today. HDFC, on the other hand, is among the top losers today.
The BSE Mid Cap index is up 0.7% while the BSE Small Cap is trading higher by 0.6%.
Sectoral indices are trading on a mixed note with stocks in the energy sector, auto sector and realty sector witnessing most of the buying.
Metal and banking stocks on the other hand, are trading in red.
Shares of Apollo Tyres and CEAT hit their 52-week highs today.
The rupee is trading at 81.73 against the US$.
Crude oil prices fell more than US$1 early today as protests in top importer China over strict curbs fueled demand worries.
Meanwhile, investors also remained cautious ahead of an agreement on a Western price cap on Russian oil and an OPEC+ meeting.
Oil marketing companies (OMCs) rallied as a result following oil prices hitting their 10-month low.
Gold prices are trading down by 0.2% at Rs 52,425 per 10 grams.
Meanwhile, silver prices are trading up by 0.2% at Rs 61,415 per kg.
Speaking of stock markets, in the latest episode of Investor Hour, Rahul Goel talks to Nithin Eapen about crypto scams, how they happen and how you can try and ride it.
Nithin Eapen is a long-term crypto investor. So, if you want to learn about the world of crypto, this is a must listen.
Specialty Chemical Companies in a Sweet Spot
In news from the chemical space, the upcoming quarter for specialty chemical companies may be filled with robust earnings expansion amid a broad-based addition to capacities in the industry that is set to benefit from a global supply-chain de-risking strategy.
This was done initially to make the most of China plus one strategy.
Market experts said that specialty chemical companies have witnessed a smart recovery in manufacturing operations in the past one year, after the Covid-led disruptions.
Supply-chain disruptions and uncertainty in China have created a significant opportunity for domestic chemical companies. Outsourcing will strengthen further as not only the supply chain shifts away from China but also from Europe on account of higher costs.
Increase in raw material costs has affected sentiment for now as even the best chemical companies are down in the range of 30-40%.
The government has taken several initiatives such as Aatmanirbhar Bharat, production-linked incentives (PLI), national logistics policy, and Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) to boost domestic production.
Aarti, NOCIL, Tata Chemicals among others are expected to benefit from the work-in-progress global supply-chain recast.
{adoai1}Tata Chemicals share price has fallen in recent session otherwise it was trading near yearly high levels last month.
Medley-Cipla Deal Called Off
Moving on to news from the pharma space, Medley Pharmaceuticals has called off its sale after talks with Cipla failed on a valuation mismatch and differences over some agreement terms.
Cipla, the sole final contender for Mumbai-based Medley, submitted a bid of around Rs 40 bn. The promoters of Medley had expected Rs 50-55 bn.
JB Chemicals and Torrent Pharma were also in the race to buy Medley.
Note that this is the second pharma merger and acquisition (M&A) transaction that has been called off or postponed recently due to market volatility and valuation mismatch.
Aurobindo Pharma had also scrapped the demerger and sale of its injectables arm Eugia Pharma Specialities to Blackstone earlier this year.
Strong EV Sales
Moving on to news from the electric vehicle (EV) space, the festive season may have ended but festivities are continuing for EV makers with November sales likely to match the record set last month amid Navratri and Diwali seasons.
If October set a monthly record of 115,861 EV sales, the numbers this month have already crossed 99,000 units, as per data from government website Vahan that tracks vehicle registrations.
This comes as backlog bookings continue to be retailed and awareness of EVs continues to grow among the strata of vehicle owners.
While the EV ecosystem is still developing in the country, adoption is driven by two- and three-wheelers as the masses increasingly use them for last-mile connectivity.
After a dip in 2021, EV sales jumped more than 200% in 2022, accounting for nearly 3% of the overall vehicle sales in India.
Electric two-wheeler sales have been going up in the last 8-12 months after the government revised upwards incentives under the Fame 2 scheme.
{inlineads3}With so many factors acting in concert, it would be a mistake if investors don't start preparing for an electric car revolution.
To know more, check out what to expect from India's top EV stocks in 2023.
And to know what's moving the Indian stock markets today, check out the most recent share market updates here.
SGX Nifty Down 68 Points | Dharmaj Crop Guard IPO | How Bharti Airtel is Planning for 5G Era | Top Buzzing Stocks Today
Pre-Open
On Friday last week, Indian share markets traded in a rangebound manner throughout the session to end flat.
Benchmark indices opened marginally lower, following record closing highs registered in the previous session, as investors digested signals from global central banks on the interest rate environment.
Gains were limited as global markets remained subdued and oil prices rose.
At the closing bell on Friday, the BSE Sensex stood higher by 21 points (up 0.1%).
Meanwhile, the NSE Nifty closed higher by 29 points (up 0.2%).
Reliance Industries, Wipro, and Axis Bank were among the top gainers.
Nestle, Kotak Bank, and ICICI Bank, on the other hand, were among the top losers.
Broader markets settled on a firm note with smallcaps and midcaps both outperforming benchmark indices.
The BSE MidCap gained 0.8% while the BSE SmallCap index ended 0.7% higher.
Sectoral indices ended on a mixed note with stocks in the realty sector, energy sector and metal sector witnessing most of the buying.
While private bank stocks and FMCG stocks witnessed selling.
Shares of Escorts Kubota and REC hit their 52-week high.
If you're interested in knowing which shares to trade, read our guide on the best intraday stocks for today.
{inlineads1}Gold prices for the latest contract on MCX were trading down by 0.3% at Rs 52,503 per 10 grams at the time of Indian market closing hours on Friday.
At 7:30 AM today, the SGX Nifty was trading down by 68 points, or 0.4% lower at 18,600 levels.
Indian share markets are headed for a negative opening today following the trend on SGX Nifty.
Recently, the Indian stock markets closed at its all-time high. Stocks across many sectors have moved up recently.
In the below video, Chartist Brijesh Bhatia covers one such sector that's looking good on the charts.
He believes fertilizer stocks should be on your watchlist and his video will guide you in narrowing down the best fertilizer stocks.
Top Buzzing Stocks Today
Bharti Airtel will be among the top buzzing stocks today.
India's second largest telecom operator is investing in upskilling its workforce for the 5G rollout and applications through extensive in-house programmes under the 5G Academy and the IP (internet protocol) Academy initiatives.
The company did lay out a plan one year ago for talent and 5G, outlining the gaps in the workforce, and the urgency with which these needed to be plugged.
Godrej Properties share price will also be in focus today.
The company expects to launch a luxury housing project at Ashok Vihar in the national capital in March quarter and is eyeing Rs 80 billion (bn) of sales revenue from this property.
It had in February 2020 acquired a nearly 27-acre land in the national capital for Rs 13.6 bn to develop a luxury housing project.
Market participants will also track shares of Bikaji Foods.
On Friday last week, shares of Bikaji Foods continued their upward movement and surged 8% to hit a new high.
A sharp rally in the stock price of the company saw its market captialisation cross Rs 100 bn in Friday's intra-day trade.
{adoai1}Dream-Run for PSU Banks
On Friday last week, the market capitalisation of Nifty PSU Bank index constituents crossed Rs 10 trillion (tn) on an intra-day basis.
With recent gains, the PSU bank index has outperformed both the Nifty and the Nifty Bank index by a huge margin in 2022.
Improved results, higher credit growth and reduction of non-performing assets (NPA), have boosted the prospects of the PSU banks.
Even on the technical charts, the index is set to head higher. On the weekly chart, the index has broken out of the falling trendline indicating an end to the 12-year-long bearish trend.
The higher high-higher low pattern since the low of 2020 is the sign of a bullish trend as per Dow theory. The icing on the cake is the breakout from the horizontal trendline on the chart.
In the last few months, the PSU banks have been on the mind of traders and investors due to their outperformance against the private banks.
Chartist Brijesh Bhatia believes this is the beginning of a new journey for the PSU Banks and it may last for the next 5-8 years. PSU bank stocks may even become best stocks for the next 10 years.
Better Earnings Prospect for Telcos
Telecom sector's revenue is set to increase 3-4% on a sequential basis in the October-December period, on the back of decent 4G additions and rising data usage in the seasonally stronger third quarter of the financial year.
Markets experts said that revenue could increase more than 5% sequentially if Bharti Airtel extends its recent sharp increase in base rates in Odisha and Haryana to other circles, and if Reliance Jio and Vodafone Idea (Vi) take a cue from Bharti Airtel.
Earlier this month, Bharti Airtel increased its base tariff by 57% to Rs 155 in Odisha and Haryana to test the waters, raising the possibility of another round of industry-wide rate revision almost a year after the last one.
At Bharti Airtel's second quarter earnings call this month, managing director Gopal Vittal underlined the need for another round of tariff correction as the current 8.5% return on capital is very low.
{adoai1}Newly Listed Stock in Focus
The newly listed stock Keystone Realtors will be in focus today. The company is in talks to acquire at least 20 residential property projects involving redevelopment work in Mumbai and expects around half of these to be added to its existing development portfolio soon.
The Rustomjee Group company is also in advanced discussions to enter into an agreement to jointly develop three projects in prime areas of the country's commercial capital.
Currently, the company's development portfolio includes around 11% work related to redevelopment projects and it is looking to increase this proportion.
Keystone Realtors listed on stock exchanges last week following the company's initial public offer (IPO).
The developer has raised more than Rs 6.4 bn through its maiden share sale. It plans to use a part of the proceeds for repayment and prepayment of certain borrowings availed by the company and funding acquisition of future real estate projects.
Dharmaj Crop Guard IPO
Agrochemical company Dharmaj Crop Guard's Rs 2.5 bn IPO will open for subscription today. This is November's 9th issue.
The offer price has been fixed at Rs 216-237 a share.
The company's GMP rose from Rs 25 to Rs 45 in one session recently, which indicates positive outlook of the market towards the offer.
Also, as a part of its expansion plans and in order to achieve backward integration for its operations, the company has acquired around 33,489.7 square meters of land at Saykha Industrial Estate, Gujarat, India.
For more, check out the 5 important details about Dharmaj Crop IPO.
And to know what's moving the Indian stock markets today, check out the most recent share market updates here.