PSUs Hindustan Petroleum Corporation Ltd (HPCL) and NTPC have announced share buyback offers. Stocks of both HPCL and NTPC are down nearly 20% year-to-date, failing to mirror the upward trajectory charted by the benchmark indices. The buyback offers of both the firms would see the government buy back equity shares at a premium to the current markets price. So what should an investor in either of these stocks do? Offer shares in the buyback or hold onto them for further gains?
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Sensex was tradign with a negative bias just ahead of the closing bell. Nifty was still below 13,000. Index heavyweights Reliance Industries, Infosys, and TCS were trading with losses.
Share prices have corrected more than 40% as all theatres are closed down due to covid-19 issue. Although, long term fundamentals are intact. Covid-19 can lead to further consolidation in the industry. Targer price: Rs 350 per share.
~ Angel Broking
“Gujarat Gas up by 7%, on positive market news of Open access restriction. As per the market news restriction on existing CNG outlets will not be there, restriction will be on new CNG stations. Key beneficiaries of this positive development will be Mahanagar Gas and Indraprastha gas both are locked at an upper circuit of 10%. PNGRB has extended the work target of the city gas distribution project. Extension will be of a total 129 days by taking into account a 69 days Lockdown period and another 60 days for Restoration period. We keep our “BUY” rating on Gujarat Gas,” said Yash Gupta Equity Research Associate, Angel Broking.
Since we witnessed broad-based buying in November, too many stocks witnessed long build-up. Some stocks which had significant long rollovers are Adani Ports, Tata Power, Idea, Tata Steel, VEDL, RBL Bank, Bajaj Finance, Coforge, LIC Housing Finance, Page Inds, etc. While very few stocks like Muthoot Finance, UPL and Dabur had short rollover
~ Motilal Oswal Financial Services
The much awaited Burger King initial public offering (IPO) will open for subscription next week on December 2 and will close on December 4. The US-based fast-food major’s India unit is offering shares to investors in the price band of Rs 59-60 per share in a lot size of 250 shares and multiples thereafter. The minimum investment that one can make for the issue will be Rs 15,000 on the upper end of the price band. Burger King had earlier in January received SEBI’s nod to float its IPO.
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Nifty 50 was hovering around the 13,000 levels on Friday while the S&P BSE Sensex was trading with a negative bias. Bajaj Auto, Tata Steel were the tip gainers.
JFL posted standalone revenue of Rs. 806cr in Q2FY21 (-18.5% YoY; +111.8% QoQ), due to muted growth in Dine-in channel. System sales recovery for Q2FY21 stands at 82.3% YoY, whereas Like-for-Like sales recovery stands at 86.9%. EBITDA Margin expanded by 287bps YoY to 26.7%. Margin improvements can be attributed to flat input costs, lower discounts and introduction of delivery charges. Outlook improves with the ongoing growth momentum across delivery and take-away channels and expected recovery from Dine-in. Therefore, we upgrade our rating on the stock to ACCUMULATE with a revised price target of Rs. 2,830 based on 63x Dec 2022E adj. EPS.
Target Price: Rs2,830
~ Geojit Financial Services
Sensex has trimmed losses and is now trading flat with a negative bias. Nifty is nearing 13,000 levels.
S&P BSE Sensex was down 135 points at 44,124 points while the Nifty 50 was still below 13,000.
“Althoug the overall trend has been strongly up, we still believe that one should avoid aggressive bets, rather focus on individual stocks with proper risk management. The ideal range for coming sessions would be 13150 – 12730 and till the time we do not breakout outside this range, we are likely to see trades on both sides, especially in indices,” said Sameet Chavan Chief Analyst-Technical and Derivatives, Angel Broking.
Laurus Labs earlier this week acquired a 72.55% stake in Richcore Lifesciences Private Limited, a Biotechnology Company, for Rs 246.67 crore. This marks the entry of Laurus Labs into the broader biologics and biotechnology segments as it looks to diversify into areas such as recombinant, proteins, enzymes, and contract development. Would this acquisition help Laurus Labs resume its sharp upward march that we have seen so far this year? Shares of Laurus Labs have zoomed 357% since the end of March this year.
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Asian stock markets declined on Friday as questions about the effectiveness of one possible coronavirus vaccine weighed on investor optimism. Benchmarks in Tokyo, Hong Kong, Seoul and Sydney retreated while Shanghai gained. Investors have been encouraged by reports of progress toward a possible vaccine. But they were uneasy after researchers questioned data that showed a candidate from the University of Oxford and AstraZeneca was 70% effective.
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“The resistance level for the Nifty is at 13050 and if we can cross that, we could head to 13200 by next week. A strong support lies at 12800 and thereafter at 12500. It is only post the breaking of 12500 that we would consider a short term correction. Until then, the trend remains bullish with a strong upside momentum,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
“Markets are likely to consolidate around the current levels in the short run. However, in the medium term, markets are likely to turn increasingly volatile. Valuations are high and therefore upside is limited. Stick to bluechips, particularly in performing sectors like IT and financials. If Sensex moves beyond 45000, increase cash levels. Invest in mid-small-caps through mutual funds. Macro data indicate better than expected recovery in the economy,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The benchmark index was trading flat on Friday morning. Among those, dragging the index were Power Grid, down 1.92%, followed by Reliance Industries, Axis Bank, and TCS.
Broadmer markets were outperforming benchmark indices on Friday morning. BSE Midcap and Smallcap Indices gained over half a percent while the benchmark Sensex was trading flat.
Sensex was tradign flat on openeing, but was trading with a positive bias. The 50-stock NSE Nifty was above 13,000.
Nifty crossed 13,000 during Friday’s pre-open session. S&P BSE Sensex was at 44,322 points.
Sensex was trading with a positive bias in the pre-open session while Nifty was still holding on to the 13,000 levels.
Sensex jumped over 200 points in pre-open session on Friday morning while the Nifty 50 was seen regaining 13,000.
“This rebound indicates that bulls are in control however the possibility of consolidation is still high and it would be healthy for the markets. In the near term, markets would continue to take cues from their global peers. On the domestic front, India’s GDP data outcome schedule on 27th November will be on the radar. We reiterate our view to focus more on the selection of stocks during this consolidation phase and continue with the “buy on dips” approach,” said Ajit Mishra, VP – Research, Religare Broking.
On Thursday, Foreign Institutional Investors (FII) were net buyers of Rs 2,027 crore worth of domestic securities. On the other hand, Domestic Institutional Investors (DII) sold Rs 3,400 crore worth of securities.
We hosted DR. Reddy’s at Edelweiss India e-Conference 2020,Asia Pacific. Highlights, Targeting 30-plus launches in FY21 in the US and a healthy launch pipeline for the next few years to offset price erosion. Seeing an overall recovery in the domestic market. Wockhardt integration is now complete; its field force will be leveraged for existing portfolio. Targeting 7–8 biosimilars with patent expires between 2026 and 2030; Pegfilgrastim filed and Rituximab in phase 3. Overall, we remain positive given, niche launches will drive double- digit growth; a solid domestic recovery; impressive cost control (SG&A control seen in last three years would continue); and niche products would improve gross margins.
SGX Nifty was trading flat on Friday morning, hinting at a muted opening for domestic benchmark indices. Today marks the start of the December series contracts and analysts are hopeful that Nifty could move higher from here. “The formation of the reversal pattern of Wednesday (bearish engulfing) seems to have not been confirmed, as Nifty bounced back sharply in the subsequent session. This market action could open Nifty to move towards the recent all time high of 13145 levels in the near term. Important support is placed at 12800 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
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“Nifty settled its monthly expiry at 12987 level with the gain of 128 points and above 12900 level which is a good sign for an upside movement during an upcoming trading session. Overall, the benchmark index started on a flat note however, afterwards movement was negative and we saw some correction during the 1st half though it couldn’t last for long and during the 2nd half, sharp recovery was there in the Nifty, based on which we saw good upside movement in it. Banking and Financial counters led the index towards an upper level. At present level, downside support for Nifty comes at 12800 while upside resistance comes at 13145,” said Sumeet Bagadia Executive Director Choice Broking.
Lakshmi Vilas Bank (LVB) on Thursday informed the exchanges that the Reserve Bank of India (RBI) has advised it of the need to fully write-down the series VIII, IX and X Basel-III compliant Tier-2 bonds worth Rs 318.20 crore. This will be the second instance of bonds being written down after the additional Tier 1 (AT1) bonds of Yes Bank were written down as per its reconstruction plan.
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India’s economy is expected to recover early next year from the recession, but at a modest pace, according to a majority of economists in a Reuters poll who said their upgraded growth predictions were based on the progress of COVID-19 vaccines. The recent vaccine news has boosted Indian stocks to repeated record highs and fueled hopes of a pick-up in economic activity. That, coupled with festive-led demand, has lifted optimism amongst economists over the past month.
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