It also stated that India needs to shorten the time taken to enforce contracts through courts.Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic equity benchmark indices closed with gains on Thursday. S&P BSE Sensex ended at 44,259 points while Nifty 50 was at 12,987. Broader markets were seen gaining as well. Volatility tanked 13% to sit near 20 levels. Among top Sensex gainers were Tata Steel, Bajaj Finance, and Bajaj Auto. Only ONGC, Maruti Suzuki, Tech Mahindra and IndusInd Bank closed in the red.
The Government on Wednesday sanctioned the merger of Lakshmi Vilas Bank with DBS Bank India, making it the first such bailout by a foreign bank. The merger will come into force from November 27, lifting the moratorium that was placed on Lakshmi Vilas Bank and delisting the shares or debentures of the lender listed on Bombay Stock Exchange and the National Stock Exchange. Shares of the bank have tanked 50% in seven trading sessions.
Highlights
Sensex and Nifty recouped all intraday losses to close Thursday’s trading session with gains. The Nifty ended at 12,987 while the 30-stock BSE Sensex 44,259. Among the top gainers on Sensex were Tata Steel, up 5.16%, followed by Bajaj Finance, Bajaj Auto, and HDFC. Only five of the 30 Sensex constituents closed with losses. These included Maruti Suzuki India, ONGC, IndusInd Bank, Tech Mahindra, and Infosys. India VIX or the fear gauge of domestic markets fell 13.42% to close at 20.02.
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Foreign Portfolio Investors, after having pulled out Rs 61,973 crore from domestic equity markets in March, have been net buyers in all but one month. During the last quarter FPIs bought stocks worth Rs 46,000 crore and most of this buying was focused on, but not limited to, the banking sector. FPI holding in BSE 200 companies increased to $415 billion, up from $360 billion in the first quarter of this fiscal year, taking their share of ownership to 23.3%, according to brokerage and research firm Kotak Securities.
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Snesex closed 431 points higher while Nifty 50 gained 128 points during Thursday's trading session. However, Nifty closed just shy of the 13,000 levels.
Nifty reclaimed 13,000 just ahead of closing bell.
BSE Midcap and Smallcap indices were up in the green but were underperforming the benchmark S&P BSE Sensex.
NSE Nifty 50 is just below 13,000 struggling to reclaim the historic figure minutes before the closing bell.
Just ahead of the expiry of November series contracts, Call Open Interest has jumped to over 1 crore contacts at 13,000 strike. Nifty is at 12,994.
Swaraj Engines is engaged in the business of manufacturing diesel engines and hi-tech engine components. Diesel Engines are specifically designed for tractor application. Going forward, we expect recovery in the tractor industry (due to robust Rabi crop production, hike in MSP & the forecast of a normal monsoon) will benefit players like Swaraj Engines. Target price: Rs 1,891 per share.
~ Angel Broking
Tata Stell shares are up 5%, followed by Bajaj Finance, Axis Bank, and HDFC. Sensex has reclaimed the 44,000 points.
Sensex zoomed over 250 points on Thursday after recouping losses and surging from lows. Nifty 50 was trading above 12,900 levels.
"Today sugar stocks were rallying sharply on the expectation of positive outcome of today's sugar millers virtual meeting with Piyush Goyal. Industry will request the Government to continue with the sugar export programme and increase the MSP of the sugar. Market is expecting that the Government might announce an export subsidy to remove surplus sugar inventory in the system. Export subsidy will help sugar millers to earn better profitability and manage cash flow effectively. Industry leaders such as Balrampur Chini, Dhampur Sugar, Dwarikesh Sugar were up by ~5% each," said Keshav Lahoti Associate Equity Analyst, Angel Broking.
Nifty Open Interest Put Call ratio fell sharply to 1.27 levels from 1.78 levels as traders have exited from 12900 – 13000 Put options. Amongst the Nifty options (26-Nov Expiry), Call writing was seen 12900 - 13100 levels, Indicating 13000 level will act as a strong resistance going forward (maximum OI outstanding, Near strike price). On the lower side, support is seen around 12800 levels where we have seen maximum outstanding Put options.To Sum It Up, Long unwinding in the Nifty and Bank Nifty Futures & fall in the Nifty Open Interest Put Call ratio on the back of Call writing at 12900 - 13100 levels Indicates that one should be cautious for the markets.Therefore, our advise is to be bearish and use any pullback rally to build fresh short positions with the stoploss of 13000 levels. On the lower side support is seen around 12800 level where Puts have been written.In the Bank Nifty, our advice is to remain bearish with stop loss of 30000 levels. On the lower side, support is seen in the vicinity of 29250 - 29000 levels
We are upgrading the target price of IDFC First Bank from Rs. 40 to Rs.44 post the recent report by the RBI’s Internal Working Group on proposed changes in ownership guidelines for Indian Private Sector Banks. If accepted both the changes will reduce the overhang of future dilution of promoter stake as IDFC Ltd currently has a 40% stake in the bank along with its holding in IDFC AMC. Under the proposed guidelines IFDC will have to dilute only 14% of its holdings in the bank as compared to 25% earlier in case they continue to own the AMC. However in case the holding company decides to sell off the AMC business then it opens up the possibility of reverse merger of the bank with the holding company which will do away with any possibility of sale of shares by the promoter entity in the future.
~ Jyoti Roy - DVP- Equity Strategist, Angel Broking
India VIX, often termed as the fear gauge of domestic stock markets tanked 15% today to sit below 20 levels.
RBI Governor Shaktikanta Das today said that after seeing a sharp GDP contraction in the first quarter, the Indian economy has exhibited a stronger than expected momentum in activity. However, he added that even as the growth outlook has improved, downside risks remain with respect to the surge in Covid infections. “We need to be watchful about the sustainability of demand after festivals and a possible reassessment of market expectations surrounding the vaccine,” he further said. The calibrated opening up of the economy can supplement domestic savings, and help fund the growth requirements, Shaktikanta Das underlined while speaking at the 4th Annual Day of Foreign Exchange Dealers’ Association of India (FEDAI).
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It is the start of the much-awaited holiday season in the western world. With Thanksgiving today and Christmas right around the corner just ahead of the New Year, it is that time of the year when millions pack their bags and travel thousands and thousands of miles to meet their loved ones. This is usually when the travel and leisure stocks start gaining momentum. However, this year, the pandemic is forcing people to sit home and enjoy only virtual family gatherings. This might not be great news for stocks that usually rally from now till the beginning of the next year in hopes of higher travel spending.
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Nifty index opened at new record high of 13145 mark but failed to hold its gains and started correcting from initial hour of the session. It corrected more than 300 points from day’s high and drifted towards 12850 zones as selling pressure was seen in latter part of the day. It formed a Bearish Belt Hold or Bearish Engulfing Candle on daily scale and negated higher lows formation after two trading sessions. Now it has to hold above 12850- 12900 zones to witness a bounce towards 13000 then 13050 levels while a hold below the same could see weakness towards 12800 then 12750 zones.
Now it has to hold above 12850- 12900 zones to witness an up move towards 12950 then 13050 levels while on the downside major support exists at 12700 zones.
~ Motilal Oswal Financial Services
Maruti Suzuki India was the top laggard on Sensex on Thursday. The stock was down 1.91%. This was followed by IndusInd Bank, Tech Mahindra and Asian Paints.
On Wednesday, Spot gold prices ended marginally lower by 0.12 percent closing at 1805 per ounce as optimism over a potential vaccine against the pandemic continued to weigh on Gold prices; however, a sudden spike in the U.S. unemployment claims limited the fall. The yellow metal also found some support as depreciating U.S. currency made the dollar denominated Gold cheaper for other currency holders. Global central banks are also expected to keep their interest rates low in an attempt to get the economy back on track which is also supportive for Gold.
As for today traders can go for BUY in gold at Rs 48300 levels with the stop loss of Rs 47900 levels for the target of 48900 levels. They can also go for BUY in Silver at Rs 59,500 levels, with the stop loss of 58800 levels and for the target of 60800 levels.
~ Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking
Winds of change may have started blowing in India’s stock broking industry, with even traditional brokerage firms now cutting costs and offering retail investors low-cost brokerage. First it was brokerage firm Sharekhan that launched a separate entity named ‘Espresso’ to venture into discount broking. Later, Kotak Securities Ltd announced its Trade Free Plan last week. The recent influx of new age investors and traders, propelled further by lockdown, prompted a rethink, Kotak Securities managing director & CEO Jaideep Hansraj told Financial Express Online.
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While the stock markets were trading with losses, Nifty Next 50 and Nifty Midcap 50 indices were seen gaining. Nifty Next 50 was up 0.02% while the Nifty Midcap 50 was up 0.13%.
The Nifty has been continuously moving higher almost for four weeks after finding support at the 50-day SMA. The Nifty also remains above the 20 day SMA. Wednesday’s correction was the first major correction seen in the last 4 weeks. The Nifty has in fact made an engulfing line Bearish candlestick pattern.
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Nifty fell below 12,850 on Thursday morning as stock markets danced between gains and losses. Sensex fell over 100 points.
"After a long time traders were struck by nervousness yesterday when the Nifty broke down over 200 points from the high. The support of 12800 has still not been violated and hence traders can continue holding their positions with a trailing stop loss. If we break 12800, we could drop further to 12500. If we resume the existing uptrend from the current level, we can head to 13200,"said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Sensex gave up gains to trade flat soon after the opening bell. Nifty 50 was below the 12,900 levels.
Nifty was breached 12,900 again while Sensex regained the 44,000 mark on opening bell today. Broader markets were mirroring the upward march. BSE Smallcap was outperforming the benchmark.
Sensex gained 139 points and the 50-stock NSE Nifty crosses the 12,900 levels once again on Thursday morning.
Sensex and Nifty were seen moving between gains and losses during the pre-open session on Thursday.
Sensex fell during Thursday pre-open session after gaining initially. Nifty was below 12,850.
S&P BSE Sensex jumped to cross 44,000 points while the 50-stock NSE Nifty zoomed to breach 12,900 levels during Thursday's pre-open session.
"Going ahead, the overall structure of the market remains positive given the optimism over vaccine progress and Joe Biden transition as White House President. However intermittent profit booking cannot be ruled out given the sharp rally in near term. Technically, Nifty has to hold above 12850 to witness a bounce towards 13000-13050 levels while a hold below the same could see weakness towards 12750. Globally, investors would watch out for developments over stimulus announcement from the new US government. On the domestic side, market would look for cues from the monthly F&O expiry and the rollover data especially on FII position," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal.
For the November series, maximum Put OI is placed at 12,800 strike with 39.41 lakh contracts, followed by 32.72 lakh contracts at 12,500 strike.
Today is the expiry for the November series contracts. Maximum Call Open Interest is placed at 13,500 strike with 48.98 lakh contracts. This is followed by 43.80 lakh contacts at 13,000 strike.
With domestic markets at their all-time high levels, investors turned to book profits which resulted in the sharp sell-off in domestic equity markets yesterday. Technical analysts say that immediate support is at 12,800 levels for Nifty. If the index managed to stay above the same, it could start gaining again, however, a fall below these levels could signal a trend reversal. “The Nifty sustaining at the immediate support at 12800 levels in the next 1-2 sessions could open chances of upside bounce in the market and also more upside in the near term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
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With the Centre making progress in the process of privatisation of fuel retailer-cum-refiner BPCL, the petroleum ministry will soon seek Cabinet nod for a process to transfer subsidised LPG customers from the company to other state-run retailers Indian Oil and Hindustan Petroleum Corporation to remove a potential irritant for the buyer. The transfer process will be completed in 3-5 years. State-run fuel retailers often do not receive subsidies on time, many a time, the release of subsidy is delayed for years. After the decontrol of prices of auto fuels, the subsidies are now on account of cooking gas, kerosene and LPG connection to the poor under the Ujjwala Yojana.
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Foreign portfolio investors have bought equities worth a record $8 billion in November so far encouraged by improving macro-economic data and good corporate results for the September quarter. With this the total investment in 2020 so far is nudging $15 billion,on the back of $14.23 billion in 2019.
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In the last seven trading sessions Lakshmi Vilas Bank shares have tanked 50%. However, yesterday when Sensex and Nifty tumbled, shares of the soon to be extinct bank jumped nearly 5%.
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The moratorium on Lakshmi Vilas Bank will be withdrawn on 27 November 2020 as the government today sanctioned the scheme for the amalgamation of the Lakshmi Vilas Bank with DBS Bank India Ltd. All the branches of the Lakshmi Vilas Bank will function as branches of DBS Bank India with effect from this date, RBI said. Customers, including depositors of the Lakshmi Vilas Bank, will be able to operate their accounts as customers of DBS Bank with effect from 27 November. The Reserve Bank further said that DBS Bank is making necessary arrangements to ensure that smooth service is provided to the customers of the Lakshmi Vilas Bank.
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