Share Market Highlights: Sensex ends 194 points higher, Nifty at 12,926; Infosys, IndusInd Bank top gainers

Sensex, Nifty LIVE Updates on November 23: In a volatile trading session, market indices hit record highs on Monday and traded bullish, amid largely positive cues from global markets and sustained foreign fund inflow.After touching lifetime intra-day highs, Sensex was trading 90 points higher at 43,974 and Nifty was 33 points higher at 12,893. During today's session, Sensex has hit an lifetime high of 44,217 and Nifty touched the all-time high of 12,962. Last Friday, Sensex ended 282 points higher at 43,882 and Nifty rose by 87 points to end at 12,859

Here's a look at the updates of the market action on BSE and NSE today

3.51 PM: Closing

After touching lifetime highs, market indices closed bullish on Monday amid largely positive cues from global markets and sustained foreign fund inflows. Ending a volatile trading session, Sensex closed 194 points higher at 44,077 and Nifty gained by 67 points to 12,926.

3. 44PM: Market outlook

S Ranganathan, Head of Research at LKP Securities said:"Indices closed 0.5% higher today amidst high volatility with a lot of activity seen in NBFC names & Small Finance Banks. Technology heavy weights along with Metals & Oil & Gas majors too lent good support to the Bulls"

3. 39 PM :Market outlook

On markets closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The Nifty moved from a nervous situation this morning to green pastures by the afternoon! However, it is shying away from hitting the 13000 mark. It is facing some resistance around the 12950-12970 levels but based on charts we should be able to achieve the levels of 13100-13200. Since we have a good support at 12700, every dip can be utilised to accumulate long positions.

3. 24PM: NBFC stocks race to multi-year highs

Financials stocks, including, banks, non-banking finance companies (NBFCs), and microfinance institutions (MFIs) were trading near multi-year highs on Monday as the Reserve Bank of India's (RBI's) internal working group, which reviewed ownership guidelines, proposed sweeping changes in the corporate structure of Indian private sector banks.

Among the individual stocks, Cholamandalam Financial Holdings, Equitas Holdings, Ujjivan Small Finance Bank, J&K Bank, and IDFC were locked in the 20% upper circuit on the BSE, while Ujjivan Financial Services was up 16%. IndusInd Bank share was the top gainer on both bourses BSE and NSE, rising 8% intraday.

IDFC First Bank stock and Shriram City Union Finance share price were up 9%, followed by an 8% rise in Bajaj Holdings & Investments.  Cholamandalam Investment, IDFC First Bank, and AAVAS Financiers gained over 3%. Meanwhile, Nifty Bank and Nifty Financial Sector indices pared gains later.

2. 56PM : Rupee opens flat

Indian rupee, the currency benchmark, opened on a flat note and was trading in a narrow range at 74.12 per dollar on Monday's opening session as rising COVID-19 cases offset positive sentiments surrounding the progress on the vaccine front. The domestic unit opened at 74.12 per US dollar at the interbank forex market, after touching 74.17 per American currency in early trade.

On Friday, the Indian rupee appreciated by 11 paise to settle at 74.16 per US dollar.

The dollar index, was down 0.13 per cent to 92.26 against a basket of six currencies.

2. 30 PM: BEML share gains 3%

BEML share rose nearly 3% today after the firm received an order from Delhi Metro Rail Corporation (DMRC). Share of BEML rose to 2.81% to Rs 674 on BSE. Market cap of the firm rose to Rs 2,776 crore.

The stock has been gained 9.34% in six days. BEML share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has gained 29% in one year and gained 32% since the beginning of this year. The Bengaluru-headquartered BEML has bagged a order from Delhi Metro Rail Corporation(DMRC), according to a regulatory filing.

BEML share gains 3% after firm wins Rs 501 cr order from DMRC

2. 11PM: RBI internal working group report outlook

Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said,: The internal working group of the Reserve bank of India has submitted a proposal to permit corporate entry into banking, permit promoters to hold on to a higher stake, and allow large NBFCs to convert into banks (with long enough track record and asset size >Rs. 50,000cr.) And The report also clearly indicates that RBI continues to prefer the Non-Operating Financial Holding Company (NOFHC) model for corporate structure if there are more than one entity in the promoting entities/converting entities. Consequent, there is a possibility of a collapse in the holding company structure for Equitas, Ujjivan, IDFC First Bank (if IDFC sells the MF business). The cap on promoters' stake in the long run (15 years) may be raised from the current level of 15% to 26% of the paid-up voting equity share capital of the bank. This is beneficial for IndusInd bank as Hinduja group has shown interest in increasing stake in the bank, and Kotak bank is also beneficial as promoter already hold 26%.

However, large NBFC would not be in hurry to convert into the bank as it converting from NBFC to Bank is a costly affair. regulatory cost of CRR, SLR, etc. Would be the key aspect for applying and granting banking licenses. 

1. 53 PM: Market update

In a volatile trading session, market indices hit record highs on Monday and traded bullish, amid largely positive cues from global markets and sustained foreign fund inflow.After touching lifetime intra-day highs, Sensex was trading 90 points higher at 43,974 and Nifty was 33 points higher at 12,893. During today's session, Sensex has hit an lifetime high of 44,217 and Nifty touched the all-time high of 12,962.

1. 46PM: Future Retail share hit upper circuit of 10%

Future Retail share hit upper circuit of 10% in early trade today after the Competition Commission cleared Reliance's proposed acquisition of retail, wholesale, logistics and warehousing businesses of Future Group.

Future Retail share opened with a gain of 9.95% at Rs 79.25 against previous close of Rs 72.05 on BSE. The stock saw only buyers no sellers on BSE. Market cap of the firm rose to Rs 4,248 crore. The stock has gained 16.26% in the last 3 days.

Why Future Retail share hit upper circuit of 10% today

1. 30 PM: Market outlook

Yash Gupta Equity Research Associate, Angel Broking said,"Indian indices are volatile on back of global market clues along with the Prime minister meeting with CMs regarding surge in cases of Covid in India. Indian indices fail to sustain opening gain, Indices open positive on the back of positive global market clues. We expect market to trade in range bound and 13000 will be a hurdle for the Nifty. Today S&P BSE Healthcare (up 2.01% ), S&P BSE Information Technology (up 2.45%) while S&P BSE Telecom (down 1.12%), S&P BSE CONSUMER DURABLES (down 0.98%) Global Market update - DOW Jones down by 219 points (up 0.75%) and NASDAQ down by 49 points (up 0.42%). Indian Indices Nifty and Sensex up by 63 points (0.51%) and 201 points (0.46%) respectively.

1. 25PM: YES Bank shares gain 2.4%

YES Bank shares were trading 2.4% higher on Monday's opening trade, amid heavy buying activity, led by a rally in broader benchmark indices Sensex and Nifty that hit new record highs.

YES Bank share price today opened at Rs 14.65 today and later rose 2.4% to the day's high of Rs 14.90 on BSE. The stock also hit the day's low of Rs 14.51, as against the earlier close of Rs 14.54 on Friday.

YES Bank shares have given almost 3% returns to its investors in the last 2 days of consecutive gains.  In the last one month period, YES Bank stock has gained for 11 days and fallen for 7 days, taking the returns to 8.31% for the period. During the same period, Sensex has gained 8.2%, while the Banking sector has risen almost 19%.

YES Bank shares rise 2.4%, here's why

1. 16PM: 2FY21 Private bank result quick review

Jaikishan Parmar-Sr. Equity Research Analyst, Angel Broking said," The recent rally led by the Banking sector Q2FY21 Result, key points which favored expansion in valuation are (a) Improvement in collection efficiency, the majority of the banks have reported more than 90% collocation efficiency. (b) Improvement in NIM, led by a contraction in excess liquidity and positive impact of capital raise. (c) Improvement in asset quality owing to standstill benefit given on asset classification. RBI also gave clear direction for restructuring book with the timeline, the disciplined rule will give a more precise picture which removes opaqueness of asset quality that investor was fearing that actual asset issue will be difficult to identify.

We expect restructuring scheme tenure extension and EMI affordability (lower interest rate) will enhance retail and SME borrower paying ability and intention. Hence, looking at Q2FY21 numbers, sufficient non-specific provision and lower expected restructure book will support large private bank's stock prices. We have a positive view on the large private bank due to better earnings and asset-quality visibility. We have a Buy rating on Cholamandalam Investment and IDFC First Bank."

12. 44PM: Top gainers and losers

IndusInd Bank, followed by Bajaj Finserv, Bajaj Finance, Reliance Industries, ONGC, NTPC and Tata Steelwere among the top gainerz in the Sensex pack. On the other hand, HDFC, Asian Paints, ITC and Bharti Airtel were among the laggards.

12. 38 PM: Indian Banking sector outlook on RBI IWG report

Indian Banking sector update,  Sameer Bhise from  JM Financial Institutional Securities Limited said,"RBI today released Internal Working Group (IWG) report on ownership guidelines and corporate structure of Indian Private Banks. We have listed the key recommendations of the report below: a) allowing existing NBFCs (with long enough track record and asset size >INR 500bn) to make the natural progression in their lifecycle by converting into banks thereby reducing systemic risk and b) encouraging greater competition in the sector by allowing newer entrants with hopes of attracting more "efficient" private sector capital. However, it will need amendments to the Banking Regulation Act as well as applicants will have to satisfy RBI's "fit and proper" criteria and open to greater supervision.

The report has also recommended greater promoter ownership (than before) thereby incentivizing newer entrants. This is pertinent given that no entity applied for on-tap Universal Banking licenses since it recommended reducing promoter ownership to 15% within 15 years). The entry level capital requirements, however, have been raised. Even non-promoters could be allowed to own 15% in banks - positive for capital-starved entities and could throw up potential acquisition opportunities amongst smaller names.

12. 23PML&T Q2 result update

JM Financial Institutional Securities in its report said," L&T's stock has been an underperformer in the recent past, primarily on concerns such as a a) COVID-led slowdown in order-intake, b) delayed execution on labour/supply chain issues, c) anticipated collection delays/rising WC debt amid stretched state finances, d) concerns on Infra margins in recent orders and e) ESG related concerns on Defence business. However, our deep dive into each of these aspects, coupled with its 1HFY21 performance/balance sheet, show that L&T may have overcome most of these challenges. Order wins (OIs) are already c.50% of FY20 levels (for core EPC) while the strong pipeline of infrastructure (Infra) segment tenders can lead to higher inflows vs. FY20 (Infra constitutes 74% of the order book - OB). L&T envisages a pipeline of c.INR 6trn (domestic c.INR 4.7trn) across heavy civil, water treatment, transportation and power T&D sub-segments; this provides visibility for 4QFY21 and FY22 inflows. With labour availability at full strength in 3Q, we expect a sustained execution pick-up and improving productivity in 2HFY21. The front-ended borrowings by Central/State governments in FY21 (INR 11trn in 1H/INR 9trn expected in 2H) have ensured that L&T receives timely payments. Hence, L&T is repaying excess WC debt of INR 90bn (Exhibits 6-7). On the ESG concern also L&T has clarified in its FY20 integrated report that it does Not manufacture any explosive /munitions. We find L&T inexpensive at 17x FY22E EPS vs. its long-term avg of 21x. We maintain BUY with a TP of INR 1,315 (implied 19x FY22 P/E). Key Risk: Reversal of trend with delayed execution, weak margins and stretched WC."

12. 17 PM: Real Estate sector update

Kapil Kapur - Director - Sales and strategy - Bullmen Realty said, "The recent announcement by FM relaxing income tax rules, aims to fasten the pace of residential property sales priced up to Rs. 2 crores. It came as a great relief for buyers and developers. For developers, this increases chances for clearing the unsold stocks, estimated close to 7 lakh in major metro cities. The buyers are however getting a significant advantage in terms of overall charges that are levied during a property purchase. Its applicability till June 2021 indicates the optimism real estate market beholds in the coming quarters. On the other hand, festive sales and offers have been doing their part, of sustaining the sales momentum generated by fence-sitters."

12.00  PM: Motherson Sumi quarterly update

JM Financial Institutional Securities said in its note," Motherson Sumi Systems (MSSL) recently held its investor meet to share its Vision 2025. The company has set an ambitious target of achieving USD 36bn in revenue by FY25 and laid-out plans to achieve it through organic/inorganic growth and c.25% contribution from non-automotive businesses. As part of Vision 2025, MSSL will be expanding into new divisions like medical, aerospace, logistics and IT. In the automotive business, MSSL is targeting USD 27bn by FY25 (vs. USD 10bn in FY20) driven by higher content/vehicle, new technology products / customers, entry into new segments/markets and inorganic growth."

11.45 AM:RIL share rises 4%

Share price of Reliance Industries Ltd (RIL) rose over 3% in early trade today after the Competition Commission cleared Reliance's proposed acquisition of retail, wholesale, logistics and warehousing businesses of Future Group. RIL share zoomed 3.73% or Rs 71 to Rs 1970 against previous close of Rs 1,899.

The stock has gained after four days of consecutive fall. The large cap share trades higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.

RIL share rises 4% after Competition Commission clears Future Group-Reliance Retail deal

11. 33AM: RBI Internal Committee recommendations

RBI Internal Committee said in its report:

-Strong Positive for IndusInd, IDFC Ltd, Equitas Holding, Ujjivan Financial, Equitas SFB, Ujjivan SFB, and mild positive for RBL, DCB, Kotak, ICICI Bank, while Neutral for HDFCB and Bandhan

-We calculate potential upside to IDFC limited (>100%), Equitas Holding (>90%) and Ujjivan Financial Services (~60%)

-Banking transition to large NBFCs: While the Universal banking license is now 'On Tap', the report recommends that well run NBFCs above Rs 500 bn assets may be permitted to convert to banks. This would include those NBFC which are owned by Corporate House also.

11. 19AM: Nifty outlook

Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking) said," In the previous couple of weeks, markets have already taken a giant leap and mostly all the major positive factors are already priced in; markets had no fresh trigger to continue the similar kind of pace. We still do not rule out the possibility of immediate levels of 13100 - 13200, but the rally may not be that smooth now. The overall trend still remains strongly bullish and we continue with our 'Buy on declines' strategy but in between, we are likely to see some profit taking. For this week, Friday's low of 12730 will now be seen as key support. A move below this will extend the corrective move towards 12600 - 12450 levels; whereas on the higher side, 12963 is the level to watch out for."

11. 10 AM: Market update

In a volatile trading session, market indices hit record highs on Monday and traded bullish, amid positive global equities. Sensex was trading 90 points higher at 43,974 and Nifty was 33 points higher at 12,893. During today's session, Sensex has hit an lifetime high of 44,217 and Nifty touched the all-time high of 12,962. Last Friday, Sensex ended 282 points higher at 43,882 and Nifty rose by 87 points to end at 12,859

11.02 AM: Gold outlook

Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said," Last week gold prices down by 1.52% and closed at 50,212 levels and silver corrected by 2.58% and closed at 62,158 levels due to development on the front of corona virus vaccination and it is expected that the vaccine may start to distribute from this Mid Dec. Supply also expected to rise in the coming days from the major gold mines as workers may return and resume production of the metal.

Hopes over a potential vaccine against the covid19 virus  might weigh on the yellow metal prices. As for today traders can go for sell in gold at Rs 50400 levels with the stop loss of Rs 50600 levels for the target of 49800 levels. They can also go for sell  in Silver at Rs 62,400 levels, with the stop loss of 63100 levels and for the target of 61000 levels."

10. 55AM: Market erases gains

After opening positive, market indices erased early gains on Monday, amid positive global equities. Sensex was trading 3 points lower at 43,878 and Nifty was flat at 12,858. Last Friday, Sensex ended 282 points higher at 43,882 and Nifty rose by 87 points to end at 12,859.

10.41 AM: Market outlook

Ajit Mishra, VP - Research, Religare Broking said,"It was a mixed week for the equity markets as the benchmark consolidated in a range but noticeable traction in broader markets kept the participants busy. The news of successful vaccine trials with higher efficacy boosted the sentiment. However, the updates on rising COVID cases across the globe capped upside and triggered profit-taking in between. Amid all, the benchmark index, Nifty finally settled at 12,859.05; up by over half a percent.

We expect volatility to remain high next week, thanks to the scheduled F&O expiry of November month contracts. In the absence of any major event, COVID-related updates and global cues will remain in focus.

We expect Nifty to consolidate further next week and the range could be 12,600-13,000. While we're seeing noticeable interest in the rate-sensitive pack, we expect fresh traction in select counters from the defensive pack i.e. FMCG, IT and pharma ahead. We thus advise traders to focus on the selection of stocks while maintaining the buy on dips approach."

10. 34AM: Petronet LNG Q2 result update

Petronet LNG result, Geojit Financial Services said in ite note,"Q2FY21 sales were down 33.4% YoY to Rs. 6,236cr. The company registered adjusted PAT decline of 20.8% YoY, reaching Rs. 919cr. EBITDA margin improved by 950bps YoY to 21.9%, primarily due to reduction in operating cost and effective commercial planning. Petronet LNG's volume demand reaching pre-COVID levels, improvement in operational efficiency, and commissioning of the Kochi-Mangalore pipeline will boost performance in upcoming quarters. Hence, we reiterate our BUY rating on the stock with a revised target price of Rs. 327 based on 15.0x FY22E adj. EPS."

10. 20 AM: Market outlook

On markets opening --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,": Market opened on a positive note but there seems to be some nervousness to get past the 13000 mark! The Nifty is still poised to achieve 13100-13200 but is facing some resistance at Friday's high of 12963. Once we get past that, we could see a smooth sailing to 13100-13200. The support for this week is at 12700.

10.00 AM: Nifty technical outlook

As per Grojit Financial Services, failure to break beyond 12730 last week suggest that traders are back to risk-on mode. This puts 13200 as the near term objective, with intraday downside marker placed at 12860.

9. 57 AM: Nifty technical outlook

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said,"Market, powered by liquidity is climbing all walls of worry.  FII inflows in November so far - above $ 6  billion - is an all-time high for a single month. The risk of this liquidity driven rally is that valuations are at lofty levels. That's why money is now moving into mid-small-caps which offer better value. Expect outperformance of the broader market to continue. The new RBI rules on banking/ NBFCs are positive for the financial sector"

9. 40 AM: Global markets

Asian markets are trading higher on the back of positive news regarding vaccine development. Singapore economy contracted 5.8% in Q3. Nikkei closed for a holiday. US markets closed lower on Friday on expectation of more restrictions due to rising covid-19 cases which could threaten business activity.

European markets closed higher as investors ignored coronavirus cases and look for cues from US Treasury decision to give more relief programs.

9. 35 AM: Market erases gains

After opening positive, market indices erased early gains on Monday, amid positive global equities. Sensex was trading 3 points lower at 43,878 and Nifty was flat at 12,858

9. 20 AM: Stocks to watch today on November 23

RIL, IRCTC, BEML, Punjab National Bank, Ashok Leyland among others are the top stocks to watch out for in Monday's trading session

Stocks in news: RIL, IRCTC, BEML, Punjab National Bank, Ashok Leyland

9. 17 AM: Market outlook

As per Relaince Research,:" In the last week, NSE-NIFTY continued its prior rising trend and rose to new life-time-high of 12,963 level. The index remained sideways and registered gain of 0.6%. On Friday, the index resumed its up-move and reported minor rise. Its key technical indicators on the near-term timeframe chart remained in sell mode. Hence, near-term decline cannot be ruled out. On the lower side, the index will find support at 12,600 level. On the higher side, its psychological mark-13,000 will cap the up-move.  

As for the day, support is placed at around 12,691 and then at 12,610 levels, while resistance is observed at 12,908 and then at 13,044 levels."

9.05 AM: Global markets

Global equities were mostly buoyed today amid hopes of a COVID-19 vaccine, while investors continued to watch for coronavirus developments.

Wall Street stocks fell on Friday amid rising new coronavirus cases, and amid fresh worries of central-bank funding for key emergency programs, casting doubts on a swift economic recovery. Most Asian stocks were trading higher on Monday trade while markets in Japan are closed for a holiday. 

8. 50 AM: FII action

Foreign portfolio investors (FPIs) bought shares worth Rs 3,860.78 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,868.66 crore in the Indian equity market on 20 November, provisional data showed.

8. 40 AM: Rupee closing

On the currency front, the Indian rupee appreciated by 11 paise to settle at 74.16 per US dollar on Friday.

Expressing views on the currency, Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking said," The rupee is currently drawing a lot of support from equity inflows and the fact that the dollar globally is on the backfoot. Going forward, we think that the rupee has scope to further appreciate till 73.80. However, beyond that, the RBI would step in to curtail its move, while the dollar index may also rebound given the uncertain growth outlook in the U.S. That should put some downward pressure on the rupee. The domestic unit is expected to trade in the 73.80 to 75 band till the end of this month."

8. 30 AM: Friday's closing

After a volatile trading session, market indices turned bullish in the last hour and closed positive on Friday, amid positive global equities. Sensex ended 282 points higher at 43,882 and Nifty rose by 87 points to end at 12,859.

Nirali Shah, Senior Research Analyst, Samco Securities said," Nifty 50 index closed the week with a mild gain after making an all-time high of 12963. But now the benchmark index has formed a bullish reversal pattern which opened with a gap near highs of the week and then gave up all the gains. The rally's velocity has also been declining along with the volume participation. In fact, Nifty has started facing resistance at the rising channel visible on the weekly chart and might continue to struggle going ahead as it lacks participation from the top index movers like ICICI Bank, HDFC, and banking stocks, who have also become a bit stretched on the upside in the short term. We suggest traders to keep an eye on the benchmark and go short unless it breaks the rising channel on the upside."

Sensex rises 282 points, Nifty ends above 12,850; banking stocks lead gains