After a buoyant week, investors are expected to start the week with caution. With a lack of overarching global cues, volatility may persist. The rising number of cases of Covid in China and citizens retaliating against the Zero-Covid policy will be a topic that investors will keep an eye on.
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
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.
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
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
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.
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)
Re 1 to ₹9.70: Penny stock that recently split in 1:10 ratio turns multibagger in 5 years
Shares of Leading Leasing Finance are one of the multibagger stocks in India. The small-cap stock with a market cap of around ₹52 crore is one of those stocks in 2022 that announced the subdivision of shares as well. The board of directors of the company announced a 1:10 stock split this year and the stock traded ex-split on 22nd September 2022.
In the last one month, this small-cap stock has delivered over 25 per cent return to its shareholders. However, this stock has a history of delivering whopping returns to its shareholders as it surged from around Re 1 to ₹9.70 apiece levels in the last 5 years, delivering to the tune of an 870 per cent return to its long-term positional investors. (Read More)
Hero MotoCorp to hike prices by up to ₹1,500 from Dec 1
The country’s largest two-wheeler maker Hero MotoCorp on Friday said it will increase the prices of its motorcycles and scooters by up to ₹1,500, with effect from December 1.
The price will increase up to ₹1,500, and the exact quantum of the hike will vary by specific models and markets, the company said in a statement.
“The upward revision of the prices of our motorcycles and scooters has been necessitated due to overall inflationary costs,” Hero MotoCorp Chief Financial Officer Niranjan Gupta said.
The company will continue to provide innovative financing solutions in order to cushion the impact on the customers, he added.
“We have also put in place accelerated savings programmes, which will help us to offset any further cost impact, and drive improvement in margins,” the two-wheeler major said. (PTI)
Deadlock deepens at Adani’s Vizhinjam port in Kerala as protesters block trucks
Protesters from a fishing community blocked attempts by India’s Adani Group to restart work on a $900 million transhipment port in south India, a company spokesperson said on Saturday, prolonging a deadlock that has stalled the port’s development.
Construction at Adani’s Vizhinjam seaport in Kerala state on the southern tip of India has been halted for more than three months after protesters, mostly Christian and led by Catholic priests, erected a large shelter blocking its entrance, saying the port’s development had caused coastal erosion and deprived them of their livelihoods. (Read More)
Kirit Parikh panel likely to recommend price cap for ONGC gas, no change in formula for Reliance
A government-appointed gas price review panel, led by Kirit Parikh, is likely to recommend price caps for natural gas produced from legacy fields of state-owned firms to help moderate CNG and piped cooking gas rates, while keeping the pricing formula for difficult fields unchanged.
The panel, which was tasked with suggesting a “fair price to the end-consumer” while ensuring “market-oriented, transparent and reliable pricing regime for India’s long-term vision for ensuring a gas-based economy”, may opt to suggest two different pricing regimes, officials said.
For the legacy or old fields of Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) — where the cost has long been recovered and which are currently governed by a formula that uses rates in gas-surplus nations such as the US, Canada and Russia — the committee is likely to recommend a floor or minimum base price and cap or ceiling rates.
This would ensure that prices do not fall below cost of production, as they did last year, or do not spike to record levels as currently. (PTI)
RBI pauses onboarding of online merchants by Paytm Payments Services; firm says no material impact on biz
Banking regulator RBI has put a pause on onboarding of online merchants by Paytm Payments Services, even as the company said it will have no material impact on its business, according to a regulatory filing.
One97 Communications (OCL), which owns the Paytm brand, had proposed to transfer the payment aggregator services business undertaken by it to Paytm Payments Services (PPSL) in December 2020 to comply with payment aggregator (PA) guidelines of the Reserve Bank of India (RBI) but the banking regulator had rejected its application.
The company had re-submitted the required documents in September 2021.
Paytm said PPSL has now received a letter from RBI in response to an application for the authorisation to provide PA services for online merchants. (PTI)
Dharmaj Crop Guard IPO opens today. Should you subscribe? GMP, other details
The initial public offering (IPO) of Dharmaj Crop Guard will open for public subscription on Monday, November 28, 2022 and the three-day issue will conclude on Wednesday, November 30. The price band has been fixed in the range of ₹216–237 per share for the initial share sale.
As per market observers, Dharmaj Crop Guard shares are available at a premium (GMP) of ₹65 in the grey market today. The shares of the company are expected to list on the stock exchanges BSE and NSE on Thursday, December 8, 2022. (Read More)
Buy or sell: Vaishali Parekh recommends 2 stocks to buy today
Vaishali Parekh has recommended two shares to buy today. Here we list out details in regard to those day trading stocks:
1] Hero Motocorp: Buy at ₹2708, target ₹2780, stop loss ₹2670; and
2] Tata Motors: Buy at ₹433, target ₹445, stop loss ₹426. (Read More)
Oil edges lower with China unrest rippling through world markets
Oil edged lower as unrest in China hurt risk appetite and the demand outlook, adding to stresses in an already-fragile global crude market.
West Texas Intermediate traded near $76 a barrel following three weeks of declines. The dollar rose on demand for havens as protests over harsh anti-virus curbs spread across the world’s largest crude importer. Large crowds gathered in Shanghai and demonstrations were reported in Beijing and Wuhan. (Read More)
Cement firms hope for better demand, price after dismal Q2
After a forgettable second quarter when margins dipped to multi-quarter lows, respite is on the horizon for cement manufacturers as cost pressures ease. However, pickup in cement demand and sustenance of price hikes are key to earnings improvement, analysts said.
Prices of imported coal, which remained elevated at $250-350 a tonne between March and October, fell 19% in the last one month, suggests analysts’ data. Pet coke prices have inched up from mid-October, but analysts say it remains 29% below first-quarter prices on average. (Read More)
Asian stocks fall amid China unrest, dollar advances
Shares were under downward pressure and the dollar climbed as markets opened in Asia on Monday to news of growing unrest in China over Covid restrictions.
US stock futures and Australian equities fell. The greenback made some of its biggest early gains against the currencies of…