Share Market Highlights 17 November 2023: Sensex, Nifty end marginally lower; bank stocks under pressure

The rupee declined by 4 paise to 83.27 (provisional) against the US dollar on Friday as a firm greenback in the overseas markets and losses in domestic equities weighed on investor sentiment.

Fresh FII inflows and crude oil prices trading near four-month lows helped the rupee restrict losses, forex dealers said.

At the interbank foreign exchange market, the rupee opened flat at 83.23 against the US currency following overnight losses in crude oil prices. The local unit moved in a tight range of 83.23 to 83.28 in the day trade.

The currency finally closed lower by 4 paise at 83.27 against the dollar. It closed at 83.23 against the greenback on Thursday.

Equity benchmark indices Sensex and Nifty declined on Friday, dragged down by heavy selling pressure in banking, financial and energy stocks amid mixed cues from global markets.

Shares of bank and NBFC firms fell after the Reserve Bank tightened norms for consumer credit as it asked them to assign a higher risk weight for unsecured personal loans, a move aimed at making the lenders more cautious about such advances.

The 30-share BSE Sensex declined 187.75 points or 0.28 per cent to settle at 65,794.73. During the day, it fell 342.74 points or 0.51 per cent to 65,639.74.

The Nifty skidded 33.40 points or 0.17 per cent to 19,731.80.

Integra Essentia Limited announced that its Agro Business bagged advance orders amounting over ₹150 million from Sarveshwar Foods Limited, and its material subsidiary Himalayan Bio Orgainc Foods Limited (Sarveshwar Group).

Aurobindo Pharma informed that the USFDA’s inspection (PAI) at Unit-I & III, Formulation manufacturing facility, of APL Healthcare Ltd., a wholly owned subsidiary of the Company, situated at Mahabubnagar District, Telangana, 509302, concluded with zero observations and a classification of “No Action Indicated” (NAI).

India exported 25.66 lakh tonnes (lt) of oilmeals during the first seven months of 2023-24 as against 19.75 lt in the corresponding period of 2022-23, registering a growth of 29.89 per cent.

Lupin Limited’s shares were up 0.40 per cent after the company secured approval from the United States Food and Drug Administration (U.S. FDA) for its Abbreviated New Drug Application regarding Ganirelix Acetate Injection.

This approval allows Lupin to market a generic equivalent of Organon USA LLC’s reference listed drug (RLD), Ganirelix Acetate Injection, in the form of a 250 mcg/0.5 mL Single-Dose Prefilled Syringe.

The shares were up by 0.40 per cent to ₹1,198 at 3 pm on the BSE.

For more details, click here.

SJVN stock is up 1.20% on the NSE, trading at ₹76.10. The company had signed a pact with Solar Energy Corporation of India to supply 200 MW of wind power.

Elara Cement universe saw robust YoY improvement in profitability, primarily led by a low base of Q2FY23, which was hit by weak cement prices and elevated operating costs due to the Russia-Ukraine war.

However, profitability for most cement firms declined Q-o-Q, hit by seasonal factors such as volume contraction during monsoons and increased spending on repair and maintenance. Thus, EBITDA/tonne for Elara Cement Universe fell ~4% QoQ (up ~61% YoY).

Outlook: Higher price to favorably impact Q3FY24 realization

We remain positive on FY24 demand prospects, considering strong traction in government-backed projects led by General Elections in CY24. Thus, firms that have added capacity in the past two years may capitalize the most on buoyant demand. While fuel prices have witnessed an uptrend recently, this negative impact may be offset by the uptick in cement prices in September and October in several markets and benefit of operating leverage.

Goa Carbon stock is up 3.15% on the NSE, trading at ₹537.85, following the resumption of operations at its Paradeep unit in Odisha.

Dr Reddy’s Laboratories launched Nerivio, a state-of-the-art United States Food and Drug Administration (USFDA) approved wearable therapy device for drug-free management of migraine, in the domestic market.

“The roll-out of Nerivio marks our entry into digital therapeutics (DTx), “ M.V. Ramana, Chief Executive Officer, Branded Markets (India and Emerging Markets), Dr. Reddy’s said.

Major gainers on the NSE at 3 pm:

SBI Life (3.80%); Apollo Hospital (2.43%); HDFC Life (2.19%); Hero Motocorp (1.74%); L&T (1.59%)

Major losers:

SBI (-3.64%); Axis Bank (-3.20%); ONGC (-2.70%); Bajaj Finance (-2.06%); BPCL (-1.87%)

Stocks advanced on BSE at 3 PM on November 17, 2023, were 1,920 against 1,771 stocks that declined; 157 stocks remain unchanged. The total stocks traded were 3,848. The number of stocks that recorded a 52-week high was 351, and those that hit a 52-week low was 24.

Lupin Limited (Lupin) has received approval from USFDA for its Abbreviated New Drug Application for Ganirelix Acetate Injection, 250 mcg/0.5 mL Single-Dose Prefilled Syringe. The stock trades at ₹1,196.80 on the NSE, up by 0.23%.

SBI Card (-5.37%)

SBI (-3.61%)

Cholamandalam Investment (-3.27%)

Axis Bank (-3.17%)

Bajaj Finance (-2.27%)

DroneAcharya Aerial Innovations stock trades at ₹178.25, down by 0.59 per cent on the BSE. The company had received a DGCA Certified Drone Pilot Training Tender for Government officers of Karnataka valued at ₹96 lakh.

Electronics Mart India stock rises by 1.89% on the NSE, trading at ₹218.55. The company had informed the exchange of a fire accident at its store located in Hyderabad.

Aurobindo Pharma’s China plant has received the European Union’s Good Manufacturing Practices (GMP) approva. “The China plant is fully installed and has received the EU’s GMP approval. It is expected to start revenue generation from the end of the fourth quarter of FY24 or early in the first quarter of FY25,’‘ Santhanam Subramanian, CFO, Aurobindo Pharma, said. Read more

MEP Infrastructure Developers Limited has informed that the Ozoneland MEP Solapur Ring Road Pvt. Ltd., Mumbai, has received the Provisional Certificate of Completion of the Project of improvement to Solapur Ring Road.

“The immediate impact of the RBI action to increase the risk weight on certain categories of unsecured loans, loans to NBFCs and credit card loans is that this will increase the capital requirements of banks, which, in turn, will increase their cost of capital. Since the credit demand in segments like unsecured retail loans is robust, banks can easily pass on the increased cost to borrowers. So, there will be a marginal increase in the cost of credit to borrowers. The impact on banks’ profitability will be negligible.

“From the perspective of macro financial stability this is a welcome decision.”

IDFC First Bank has received prior approval from BSE Limited on the proposed amalgamation amongst IDFC Limited and IDFC Financial Holding Company Limited into and with IDFC FIRST Bank Limited. IDFC First Bank stock declines by 4.07% on the NSE, trading at ₹84.80.

The Indian Hotels Company informed that Nekta Food Solutions Limited has been incorporated as a step-down subsidiary of the company, (being a wholly-owned subsidiary of ‘Taj SATS Air Catering Limited’, the Company’s subsidiary).

Adani Energy Solutions Limited (AESL) announced that the company has been moving places in its quest to be within top notch rated companies in ESG (Environment, Social, & Governance) ratings. The stock trades at ₹742.25 on the NSE, down by 0.66%.

GE Power India (19.99%)

Titagarh Rail Systems (18.57%)

Tata Investment (17.75%)

Vishal Fabrics (16.35%)

Starteck Finance (16.15%)

Add-Shop E-Retail Limited had released results for H1FY24. Its profit before tax stood at ₹101.7 million and recorded a quarterly profit after tax of ₹76.1 million. The stock trades at ₹30.57 on the BSE, down by 0.26%.

​Coromandel International​ stock trades at ₹1,117.55, down 0.17%, on the NSE. It had unveiled the Coromandel Nanotechnology Center at Coimbatore, Tamil Nadu.

Click ​here to learn the full details of the latest nanotechnology center​.

On Friday, the Indian stock market experienced a mixed performance as a decline in financial stocks, following the tightening of consumer lending rules by the country’s central bank, counteracted the positive impact of a rally fueled by a more favorable U.S. interest rate outlook and a decrease in oil prices. The central bank implemented a 25 percent increase in the risk weight on consumer loans issued by banks and non-banking financial companies (NBFCs), said Shrey Jain, Founder and CEO of SAS Online - India’s Deep Discount Broker.

Trading strategy by Shrey Jain:

In the case of Nifty, the support range is positioned between 19625 and 19700, with a robust buying range extending from 19525 to 19575. In the higher range, Nifty may encounter resistance levels at 19875-19950.

For Bank Nifty, the initial support zone is identified as 43900-44050, followed by a stronger support range at 43625-43800. In the higher range, a formidable resistance is anticipated at 44500-44700.

The board of Dr Lal Path Labs has approved the allotment of 8,000 equity shares under the ESOP 2010 plan of the Company. The stock rose 1.31% on the NSE, trading at ₹2,715.70.

TVS Motors stock rose 1.15% on the NSE, trading at ₹1,703.55 following its association with Emil Frey for the distribution of its products including the TVS Apache RTR 310 in European Union markets.

Click here to know the full details of the pact.

Brigade Enterprises stock rises by 3.83% on the NSE, trading at ₹742 following its partnership with Krishna Priya Estates and Micro Labs to develop a housing project in Bengaluru with an estimated sales value of ₹2,100 crore.

Technocraft Industries (India) stock trades at ₹2,012.80 on the NSE, down by 0.04% after it announced that it will discontinue the production of Milange Yarn at its Milange Yarn unit located in Murbad, Maharashtra, due to adverse market conditions and losses.

The common equity tier-I (CET-1) capital level of banks is seen declining by 35-100 bps following the increase in risk weights for unsecured consumer loans by RBI on Thursday.

“The actual impact would be lower as some of the NBFC exposure would be eligible for PSL and hence would carry a lower risk weight. Even after factoring in this impact, CET1 remains comfortable for most banks,” Axis Capital said in a note. Click here to know the complete report on the impact of RBI’s decision on banks.

Outlook 2024: Stay selective—prefer Asia tech & domestic resilience

“We think EM and Asia ex Japan equities could see flattish returns in 1H24, as upside from the tech cycle may be offset by a US slowdown. EM and Asia ex Japan equities +7-9% by end-2024, driven by earnings. A strong earnings recovery, led by Asia tech is seen despite slower global growth, we forecast strong earnings growth of 14.0% and 12.4% in 2024 and 2025. The five key themes which we think could drive EM returns in 2024. We prefer markets where analysts’ stock ratings are the most positive relative to the last five years. We prefer Korea/Taiwan over China for now; domestic-focused markets”

Jagatjit Industries board has approved availing term loan of ₹180 crore from Indian Renewable Energy Development Agency Limited (IREDA).

Jagatjit stock falls by 4.74% on the BSE, trading at ₹205.10.

PTC India

Improved margins prop financials – Q2FY24 Update/Target price/Rating change – Accumulate - TP INR 174 - Upside: 10%

Strong bottomline led by robust net surcharge and rebate income

PTC India’s Q2 reported revenue (standalone) rose 6.0% YoY to INR 48.8bn. Surcharge income in Q2FY24 stood at INR 345mn versus INR 118.3mn in Q2FY23. Net rebate increased 40.2% YoY to INR 333.6mn in Q2FY24 from INR 237.8mn in Q2FY23. Core margins increased 16% to 3.96 paisa per unit versus 3.41 paisa per unit last year. Core margin, including net surcharge and rebate income, increased by 41% YoY to 7.18 paisa per unit in Q2. PAT increased 113% YoY to INR 1.33bn, aided by higher dividend income of INR 410mn from PTC Financial Services.

Stout long-term volume partially offset by declining short-term trade

Short-term volume comprised 45% of total volume in Q2FY24 versus 48% in Q2FY23, while long- and medium-term volume increased from 52% in Q2FY23 to 55% in Q2FY24. Total trading volumes increased 1.5% YoY to 21,326MU in Q2FY24. Short-term volumes declined 3% YoY to 9,526MU. Long- and medium-term volumes improved 6% YoY to 11,800 MU in Q2.

Total volumes rose 8% YoY to 41,885MUs in H1FY24. Short-term volumes rose 17% YoY to 21,960 MUs in H1FY24 whereas long- and medium-term volumes were flat at 19,925MU in H1FY24.

AIA Engineering’s strategy is to serve as a complete solution provider for grinding media and mill liners. The company has indicated that core client industries remain strong and that it does not anticipate any major macroeconomic challenges for its customers in the mining, cement and utilities verticals over the next 12 months.

To capitalise on the conversion trend from forged media to high chrome mill internals in the mining industry, AIAE plans to expand capacity from 440,000mt to 520,000mt by FY24 through brownfield capex of ₹2bn. The company has a healthy balance sheet (net cash of ₹25bn as of FY23) with negligible leverage and strong free cash flow generation.

AIAE’s technological leadership over the years in high chrome mill internals, strong growth opportunity in mining sector and superior financial metrics of growth, margins, cash flows and ROIC are key business moats. Hence we Initiate BUY and value the stock at 30x FY26E with a TP of ₹4,225

Total stocks traded were 3,730. The number of stocks that recorded a 52-week high was 317, and those that hit a 52-week low was 20.

Jindal Stainless is organising an investors plant visit at Jajpur, Odisha, on November 22, 2023. The stock rises by 3.31% on the NSE, trading at ₹493.05.

Fitch Ratings expects India’s power demand to rise by around 7% in the financial year ending March 2024 (FY24) amid robust industrial activity.

The strong power demand should keep thermal power plant load factors high (7MFY24: 68.7%). However, we expect coal import volume to remain modest, with higher local supply meeting a large part of the increased demand. Coal inventory at power plant has been declining since August 2023, when monthly power demand reached a record high. The government aims to boost local coal production and allow power plants to blend a higher proportion of imported coal in the fuel mix to ensure adequate coal stock.

We expect cost-effective storage capacity and new technology to help India meet its ambitious long-term energy transition goals. The country has implemented various schemes to boost renewable energy capacity addition. We expect recent changes to wind capacity auctions to limit aggressive bidding and lead to better project execution. Solar power continues to lead renewable capacity addition, contributing 5.0GW of new capacity out of the 6.6GW of total renewable capacity additions in 1HFY24.

We forecast the receivable position of generation companies to continue improving in the near term, as distribution companies are promptly clearing dues, encouraged by the central government’s late payment surcharge rule.

Seamec stock inches up by 0.52% on the NSE, trading at ₹885.50.

Kotak Mahindra Bank stock trades at ₹1,772.65 on the NSE, down by 0.01%.

TVS Motor Company Ltd.’s shares were up by 1.36 per cent after the company made its foray into the European market by entering into an import and distribution agreement with Emil Frey. TVS Motor Company aims to offer European customers a diverse range of high-performance and technologically advanced two-wheelers.

VIP Industries informed the exchange that Suhas Kshirsagar, Vice-President Corporate Quality & CRM, has tendered his resignation. The stock trades at ₹625.45 on the NSE, up by 1.71%.

Bank Nifty futures (November expiry) opened today’s session lower at 43,894.80 versus yesterday’s close of 44,293.90. It is now trading at 43,860, down 1 per cent. The contract has reacted positively to the support at 43,750 by bouncing off this level. However, this does not mean a rally as there is a barrier at 44,050. Moreover, the overall bias is bearish today.

Saregama (9.15%); Greenland (8.56%); Titagarh (8.40%); Varroc (8.14%); Tata Investment (6.78%)

Major losers:

RBL (-6.93%); AB Capital (5.98%); L& TFH (5.51%); SBI Card (5.46%); Ujjivan (4.66%)

Brigade Enterprises Ltd’s shares jumped 5.02 per cent after the company entered into a Joint Development Agreement (JDA) with Krishna Priya Estates Pvt Ltd and Micro Labs Ltd to undertake the development of approximately 2 million square feet of residential housing in Yelahanka, Bengaluru. The Gross Development Value (GDV) of this project is estimated at ₹2,100 crore, over 14 acres.

Affle (India) has filed 5 new patents. The patent subject areas include:

1. Systems and methods for ownership and biometric based authentication through Artificial Intelligent (AI) agent.

2. Systems and methods for managing a secure cloud based enclave without breach of user privacy.

3. Systems and methods for categorizing personal information into relevant categories corresponding to social engagement AI agents in a privacy and ad sensitive manner.

4. Systems and methods for augmenting responses/recommendations and generating enhanced decisions through resource sharing between AI agents.

5. Collaborative AI agent systems with coordinators/recommendations for shared applications and methods thereof.

The stock inches up by 0.09% on the NSE, trading at ₹1,026.40.

The Nifty 50 November futures (19,826) is trading flat now. The immediate outlook is mixed. 19,800-19,900 can be a possible trading range. A breakout on either side of this range will determine whether the contract can go up to 20,000 or fall to 19,750-19,700. We will have to wait and watch.

Delhivery stock trades at ₹403.30 on the NSE, down by 2.55%. According to reports, Softbank is planning to sell stake worth $150 million via a block deal. Softbank may sell up to 4 per cent stake.

According to reports, around 1.35 crore shares of the company changed hands in a large trade at Rs 403.50 a share.

Growth in unsecured retail loans and loans to NBFCs have exhibited a 2-year CAGR of 24%/26% respectively vs sector loan CAGR of 16% over the same period. This pace of growth could have prompted the changes in risk weight by the central bank as a prudent measure even while asset quality trends have so far been holding up. On a prima facie basis, the banking system would have to evaluate capital requirement as per the new risk weights vs growth dynamics even while many banks especially the large private sector banks are well capitalised. higher capital requirement for banks for NBFC lending may lead to higher cost of borrowing for NBFCs if passed on by the banking sector. The impact of the regulations would of course differ from entity to entity and be become clearer subsequently

NIIT Learning Systems has allotted 2,53,501 equity shares of ₹2 each in accordance with the terms of NIIT Learning Systems Limited Employee Stock Option Plan. The stock trades at ₹385.35 on the NSE, down by 0.35%.

Bajaj Finance expects the ban by RBI on lending via two digital products to be lifted within the next 45-90 days given that the deficiencies are expected to be rectified within two-three weeks, following which the RBI could review and approve the changes in the next four-five weeks, reports said.

SBI Card (-5.51%); Cholamandalam Investment (-3.07%); SBI (-2.70%); Axis Bank (-2.64%); Bajaj Finance (-1.83%)

ICICI Bank has allotted 54,543 equity shares of face value of ₹2 each on November 17, 2023. under the ICICI Bank Employees Stock Option Scheme-2000. The stock declines by 0.19% on the NSE, trading at ₹934.20.

RBI tightens capital norms for unsecured personal, credit card and bank loans to NBFCs.

RBI followed-up with its cautious stance on unsecured retail loans by raising risk weights on such loans by 25ppt (existing and new loans). These will apply on unsecured personal loans, credit card, consumer durable loans by banks and NBFCs; risk weight on bank loans to NBFCs will also rise. Tightening is more than expected as it encapsulates (1) all forms of unsecured loans not just sub Rs50k loans which was a segment that RBI was most worried about and (2) bank loans to NBFCs to tighten such lending.

Bank to see 50-60 bps haircut on Tier I CAR; higher for large private banks; lower for Bandhan & IIB; most banks are well capitalised. Our analysis of segment wise exposure of banks indicates that banks will see 50-60bps impact on Tier I CAR due to rise in risk weights on personal loans, credit card dues and loans to NBFCs. Large private banks will see higher impact due to higher share of unsecured loans. PSU banks have tad lesser impact than larger private banks. Among smaller banks, IIB & Bandhan have lower impact; IDFCFirst Bank has higher share of unsecured loans. While most private banks are well capitalised, this may force some banks (especially for PSU banks like SBI & PNB) to advance capital raising cycle by a year or so. Banks may also look to raise rates on loans to NBFCs and tighten lending norms, which may impact earnings.

Asian Paints (2.51%); Divi’s Lab (1.84%); Hero Motocorp (1.60%); Bajaj Auto (1.56%); SBI Life (1.48%)

Major losers:

SBI (-2.38%); Axis Bank (-2.04%); Bajaj Finance (-1.77%); Bajaj Finserv (-1.53%); ONGC (-0.74%)

Indian markets opened in red on Friday. BSE Sensex and NSE Nifty lost around 0.3% each in early trade. Sensex majors such as SBI, HDFC Bank, ICICI Bank, Axis Bank, Bajaj Finserv and Kotak Mahindra Bank are under pressure as RBI hiked risk weights on unsecured bank, NBFC loans by 25%. Crude oil futures traded higher on Friday morning after falling nearly 5 per cent on Thursday. At 9.12 am on Friday, January Brent oil futures were at $77.73, up by 0.40 per cent; and December crude oil futures on WTI (West Texas Intermediate) were at $73.19, up by 0.40 per cent.

Crude oil futures traded higher on Friday morning after falling nearly 5 per cent on Thursday. At 9.12 am on Friday, January Brent oil futures were at $77.73, up by 0.40 per cent; and December crude oil futures on WTI (West Texas Intermediate) were at $73.19, up by 0.40 per cent. December crude oil futures were trading at ₹6132 on Multi Commodity Exchange (MCX) in the initial trading hour of Friday morning against the previous close of ₹6072, up by 0.99 per cent; and November futures were trading at ₹6099 as against the previous close of ₹6026, up by 1.21 per cent.

“Trading Members of the Exchange are hereby informed that effective from November 17, 2023, the equity shares of Kalyani Cast-Tech Ltd (Scrip Code: 544023) are listed and admitted to dealings on the Exchange in the list of ‘‘MT’‘ Group Securities. For further details please refer to the notice no 20231116- dated November 16, 2023,” BSE said.

Tata Consultancy Services (TCS) has announced a buy back of up to 4.10 crore fully paid-up equity shares at ₹4,150 a share for an amount equivalent to ₹17,000 crore. It will represent 1.12 per cent of the total paid-up equity share capital. This is TCS’ fifth buyback of shares in the last six years. Click here to know how to benefit from TCS share buyback

Indian equity market benchmark NSE Nifty50 is expected to open on a flat note with negative bias on Friday. Gift Nifty is ruling at 19,800 against Nifty futures close of 19,829 on the NSE. Analysts expect profit taking to continue at higher levels. As the results season is almost over, he focus will be on other triggers. Market has almost discounted all the positives and negatives and await further trigger to take a clear direction, analysts said. Meanwhile, sector rotation and stock-specific action will continue in this consolidation phase, they added.

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Olatech Solutions Ltd

Bonus issue 17:20

Previous day Closing Price – Rs. 228.2

Ex Bonus 20 November 2023 (Monday)

Last date Trade for Before Bonus TodayBonus issue 17:20

Previous day Closing Price – Rs. 228.2

Ex Bonus 20 November 2023 (Monday)

Last date Trade for Before Bonus Today

Net debt declines further; limited deleveraging ahead with capex lined up

(SAIL IN, Mkt Cap USD4.4b, CMP INR88, TP INR85, 3% Downside, Neutral)

In 2QFY24, SAIL received a one-time revenue and EBITDA gain of INR17.5b related to rail price revision for FY22. This is as per the recommendation of the Office of the Chief Adviser (Cost), Ministry of Finance. For a like-to-like comparison, we have adjusted 2QFY24 financials by excluding this one-time gain.

SAIL’s revenue was up 7% YoY at INR280b in 2QFY24, higher than our estimate of INR255b, driven by better-than-expected volumes, which was offset by lower ASP. ASP for 2QFY24 stood at INR58,256/t, lower than our estimate of INR60,679/t.

SAIL recorded its highest 2Q crude steel production at 4.8mt (up 18% YoY), higher than our estimate of 4.2mt. SAIL also achieved the highest-ever 2Q sales volume at 4.8mt (up 14% YoY), higher than our estimate of 4.2mt.

EBITDA grew 189% YoY to INR21b, in line with our estimate of INR23b. EBITDA was supported by lower coking coal prices and better volume mix.

SAIL reported APAT of INR3b, which was lower than our estimate of INR7b. Lower than expected other income and higher tax outgo impacted APAT.

In 2QFY24, SAIL made a provision for the settlement of contractual disputes amounting to INR4.1b under Vivad se Vishwas Scheme - II.

Bhilai plant clocked one of the highest revenues at INR100b (up 45% YoY). Its major five plants posted profits in 2QFY24 and 1HFY24.

Net debt inched down to INR247b at 2QFY24 end (vs. INR250b at FY23-end).

Ex-Dividend 20 November 2023 (Monday)

Last date for Cum-Dividend Today

Anupam Rasayan India Ltd

Dividend Per Share Rs.0.5

Previous day Closing Price – Rs. 932.15

Aurobindo Pharma Ltd.

Dividend Per Share Rs.3

Previous day Closing Price – Rs. 975.8

Balrampur Chini Mills Ltd.

Dividend Per Share Rs.3

Previous day Closing Price – Rs. 434.9

Bella Casa Fashion & Retail Ltd

Dividend Per Share Rs.0.8

Previous day Closing Price – Rs. 159.65

Cochin Shipyard Ltd

Dividend Per Share Rs.8

Previous day Closing Price – Rs. 1078.65

Dolat Algotech Ltd

Dividend Per Share Rs.0.15

Previous day Closing Price – Rs. 65.92

GMM Pfaudler Ltd.

Dividend Per Share Rs.1

Previous day Closing Price – Rs. 1619.65

G M Polyplast Ltd

Dividend Per Share Rs.0.5

Previous day Closing Price – Rs. 167.5

Kaveri Seed Company Ltd.

Dividend Per Share Rs.5

Previous day Closing Price – Rs. 605.45

Mazagon Dock Shipbuilders Ltd

Dividend Per Share Rs.15.34

Previous day Closing Price – Rs. 1982.5

The RBI has increased risk weight on CC/PL/consumer durable loans by 25% across banks and NBFCs, while segments like Housing, Vehicle, Education, Gold loans and MFI will continue to attract the same risk weight. The revised risk-weights will be applicable to both new and outstanding loans and will impact capital ratios of underlying banks & NBFCs. While the measure is prudential in nature, it will impact the capital ratios of lenders and compel them to increase interest rates on such products to mitigate the impact on RoE.

Affected consumer credit forms 10-16% of loans for our coverage banks

The consumer segments, where risk weight has been increased, form 10-16% of loans for our coverage banks. The RBI has also increased risk weight for banks lending to NBFCs by 25%, excluding loans to housing finance companies (HFCs) and loans to NBFCs, which are eligible for classification as priority sector. In our calculation, we have thus assumed 40% of NBFC exposure (excluding HFCs), which will undergo a revision in risk weight. The move will lead to a 2-5% increase in RWA across our coverage banks.

CET-1 ratio to get impacted by 30-85bp (barring SBI Cards); Healthy capitalization level (barring SBIN) remains a comfort

Our estimates suggest a 30-85bp impact on capital ratios (barring SBI Cards) on account of the increase in risk weight. Our calculations suggest the impact to be maximum for RBL/HDFCB/ICICI at 84bp/72bp/64bp, while SBIC remains the most vulnerable with a 416bp impact. Strong profitability and healthy capitalization levels across lenders will cushion the impact of this measure. In 2QFY24 results, most lenders suggested that they have tightened the underwriting standards and are closely monitoring the risks in the retail segment. However, we remain watchful of growth and asset quality trends in unsecured retail.

Besides, the RBI has also suggested that all lenders should review the sectoral exposure limits for consumer credit and put in place board-approved limits for various retail segments, specifically the unsecured retail.

While pressure for incremental weakness in INR might persist in the near-term given the volatility in the global markets, it is no longer likely to be intense in the coming weeks and the risks of INR breaching the level of 84 has reduced. The recent softness in US labor market/ inflation data has weighed upon the US dollar (DXY index has slipped 2.2% since its recent highs in Oct-23), thereby providing respite to EM currencies. Further, the likelihood of Fed opting for another rate hike in Dec-23 has also progressively declined, mitigating the risks of further capital outflows.

As a signatory to the Paris Agreement India has to reduce power generation from coal and substantially increase power generation from renewable energy. India has an ambitious target of 500 GW of renewable energy and the private sector is expected to play the major role in realising this target. Many private companies are investing heavily in green hydrogen and the market perception is that they will do well. This has aroused investor interest in the stocks of these companies investing in green energy

Jio emerges as the major gainer

Industry’s VLR base declined by 3.1mn in Aug-23, from the 3.6mn increase in Jul-23. This was led by industry VLR decreasing from 91.3% to 90.9%. VIL continued to lose VLR subscribers (-2.9mn), with Bharti also seeing a VLR subs loss, of 0.4mn, owing to lower VLR.

Jio saw subs addition of 1.2mn in Aug-23. In terms of overall subscribers, Jio continued to report the highest addition for the 17th straight month (3.2mn in Aug-23), with Bharti lagging at 1.2mn adds. VIL reported flat subs addition QoQ, as loss rate moderated. The overall subscriber base increased by 2.2mn. Jio also had a lead in wireless broadband subscriber addition, with an increase of 3.2mn; Bharti followed, logging a 2.6mn increase MoM. VIL’s wireless broadband subscriber-count was up 1.3mn MoM.

Jio seems to have gained from the launch of JioBharat phone. Jio’s wireline addition rate moderated, with addition of only 0.19mn subs (as against a 0.23mn addition in Jul-23), possibly due to monsoons. Even as Jio and Bharti continue with 5G rollouts, timing of the tariff hike remains the key trigger. VIL needs a sizable fund-raise to increase capex for restricting the loss of subs. We continue to favor Bharti Airtel and Jio among telcos.

Balance sheet allows continued outperformance; maintain BUY

Ethos delivered a 23% EBITDA beat, led by 300bps better margins on faster MRP revisions and lower operating costs. Robust outperformance continued vs. other retail formats, with 32% topline growth in Q2/H1 (23% SSG). Demand trends remain encouraging in the luxury space (21% growth in Indian Swiss-watch exports in 9MCY23) and Ethos should be a key beneficiary with a strengthened balance sheet (Rs3.7bn: QIP raise + net cash). Ethos’ focus is to grow faster, and it plans to use proceeds towards (1) accelerated network expansion (~100 stores over FY23-27 vs. 25-30 stores earlier), (2) front-loading of inventory purchases for exclusive partnerships and (3) ramp-up of acquired brand – Favre Leuba.

We maintain BUY and raise our TP by 15% to Rs2,300, led by a 5-8% increase in estimates on margin beat, 12% increase in TP multiple on strengthened balance sheet and 4% negative impact of equity dilution. A better return generation in Favre Leuba is a potential upside.

12:30 U.K. Retail Sales (Expected: 0.5% versus Previous: -0.9%)

15:30 Euro Final CPI y/y (Expected: 2.9% versus Previous: 2.9%)

19:00 U.S. Building Permits (Expected: 1.45M versus Previous: 1.47M)

21:15 U.S. FOMC Member Goolsbee Speaks

(Provisional Cash Rs. In Crs)

FII/FPI: NET BUY: +957.25

(13546.39 - 12589.14)

DII: NET BUY: +705.65

(6690.87 - 5985.22)

Jio Financial Services Limited informed the exchange that RBI has accorded its approval for the appointment of Isha Mukesh Ambani, Anshuman Thakur and Hitesh Kumar Sethia as Directors of the Company. The stock trades at ₹225.50 on the NSE, up by 0.60%.

Nerivio is an USFDA approved wearable therapy device for drug-free management of migraine. Dr Reddy’s stock rises by 2.67% on the NSE, trading at ₹5,564.70.

The RBI has imposed a monetary penalty of ₹90.92 lakh on Axis Bank and ₹42.78 lakh on Manappuram Finance for violation of certain directions of the banking sector regulator.

Shares of Delhivery will be in focus on reports that Softbank is planning to sell stake worth $150 million via a block deal. Softbank may sell up to 4 per cent stake.

Technocraft Industries (India) informed the exchanges that it will discontinue the production of Milange Yarn at its Milange Yarn unit located in Murbad, Maharashtra, due to adverse market conditions and losses. During FY23, the revenue contribution from this unit was 5.69 per cent of total revenue. Milange Yarn Unit – Murbad is having about 30,000 spindles to manufacture Milange Yarn.

Elpro International has further acquired 78,560 shares of Jyothy Labs Ltd and 1,234 shares of Nestle India from open market for investment purposes. Elpro has been acquiring company shares in small quantities.

Realty firm Brigade Enterprises has formed a partnership with Krishna Priya Estates and Micro Labs to develop a housing project in Bengaluru with an estimated sales value of ₹2,100 crore. The 14-acre land parcel is located at Yelahanka in North Bengaluru.

Leading two-wheeler and three-wheeler manufacturer TVS Motor Company on Thursday said it has signed an agreement with Emil Frey, one of the Europe’s largest automobile importers and retailers, for distribution of its products including the TVS Apache RTR 310 in European Union markets. The Chennai headquartered company said France will be the first country for the launch, where an entire suite of its products including ICE and EV models will be made available starting January 2024.

JSW Steel informed the exchanges that after considering the demand and supply scenario of iron ore in India, it has withdrawn its application for the final mine closure plan for surrender of Jajang Iron Ore Block in Odisha.

The disinvestment in IDBI Bank may not be completed by March 2024, said the Department of Investment and Public Asset Monetisation (DIPAM) Secretary, Tuhin Kanta Pandey.

State-owned power producer SJVN has signed a pact with Solar Energy Corporation of India to supply 200 MW of wind power. The power producer has signed a power purchase agreement (PPA) for a 200 MW grid-connected wind power project with Solar Energy Corporation of India Ltd (SECI), SJVN Chairman and Managing Director

JSW Infrastructure has emerged as the winning bidder for development of all-weather, deep-water, greenfield port at Keni in Karnataka on Public Private Partnership basis. The Karnataka Maritime Board, Government of Karnataka has issued the Letter of Award (LOA) to JSW Infrastructure. As per the RFP document, the estimated cost of the Project is ₹4,119 crore with initial capacity of 30 MTPA.

Coromandel International has unveiled its Coromandel Nanotechnology Center at Coimbatore, Tamil Nadu, which will support its efforts towards development of wide range of nano-enabled agro-inputs for plant nutrition and crop protection. The Center will be the sixth R&D facility of Coromandel and the second Tech Centre which will focus on development of next-generation agri-inputs, the first being Coromandel’s research facility in Monash Academy, IIT Bombay.

The board of DCX Systems has approved a proposal to raise funds up to Rs 500 crore via public issue, preferential issue, rights issue, private placement(s) or qualified institutions placement.

Goa Carbon resumes operations at the company’s Paradeep unit of Odisha.

The Reserve Bank of India has asked banks and non-banking financial institutions to limit lending to consumers amid growing risk concerns. Consumer loans ​will attract a credit risk weight of 125 per cent as compared with 100 per cent earlier​.

For NBFCs, too, consumer loans will attract a risk weight of 125 per cent, The move will make consumer lending costlier for banks and non-bank lenders and put pressure on lending rates too.

After certain account holders of UCO Bank received a total of around ₹820 crore in “erroneous credits” via the Immediate Payment Service (IMPS), Uco Bank on Thursday said it has blocked the recipients’ accounts and has been able to retain and recover around ₹649 crore, which is about 79 per cent of the total money.

CHAMBAL

DELTACORP

HINDCOPPER

INDIACEM

MANAPPURAM

MCX

SAIL

ZEEL

keynote Capital’s take on MCX

In Q2-FY24, Multi Commodity Exchange of India (MCX) delivered revenue growth of 29.6 per cent on a y-o-y basis on the back of improving ADT of Options contracts, which increased by 173.6 per cent on a y-o-y basis. MCX has finally transitioned to a new platform from October 16, 2023. However, operating margins were adversely affected during the quarter due to two factors.

Firstsource Solutions’ management remains confident about achieving 0-2 per cent growth in FY24 and operating at 11-11.5 per cent EBITM. Overall, BPO market size is $300 billion, of which Customer Experience (CX) comprises 25-30 per cent.

The Initial Public Offering (IPO) of Tata Technologies is set at a price band of ₹475-500 a share. The IPO opens on November 22 and close on November 24. The issue size is ₹3,042.5 crore at the upper end of the price band.

The IPO from the Tata group stable, coming after a gap of nearly two decade, will be entirely through an offer for sale. The offer consists of the sale of up to 4.6275 crore shares by Tata Motors Ltd, 97.17 lakh shares by Alpha TC Holdings Pte. Ltd. and 48.58 lakh shares by Tata Capital Growth Fund I.

State-run Indian Renewable Energy Development Agency (IREDA) said on Thursday that it has fixed a price band of ₹30-32 per share for its initial public offer (IPO), which will open on Tuesday next week.

IREDA, a mini-ratna under the Ministry of New and Renewable Energy (MNRE), is a systemically important non-deposit-taking non-banking finance firm (NBFCND-SI) with the status of an infrastructure finance company (IFC).

The positive CPI inflation reading for October 2023 is a “welcome relief” but it does not mean that India is “out of the woods” yet as elevated food prices continue to risk to inflation expectations, as per RBI’s State of the Economy report.

“We are not out of the woods yet and have miles to go, but readings of around 5 per cent and 4.9 per cent in September and October, respectively, are a welcome relief from the average of 6.7 per cent in 2022-23 and 7.1 per cent in July-August 2023,” said the report, which was released as part of RBI’s November bulletin.

The short-term outlook for Welspun India is bullish. The stock fell over 3 per cent on Thursday. But that has not changed the structure and the trend on the charts. The recent fall could just be a short-lived correction. Immediate support is at ₹158. Below that ₹151-150 is the next strong support.

Here are the intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS and SBI

Tokyo stocks opened lower on Friday after the US Dow was weighed down by discouraging corporate forecasts.

The benchmark Nikkei 225 index was down 0.35 percent, or 118.14 points, to 33,306.27 in early trade, while the broader Topix index slipped 0.32 percent, or 7.69 points, to 2,360.93.

The dollar fetched 150.65 yen in early Asian trade, against 150.76 yen in New York late Thursday.

Overnight, Wall Street finished mixed after a meandering day, with the Dow weighed down by big drops in retailer Walmart and technology titan Cisco Systems.

Oil prices

Oil headed for a fourth weekly loss after sinking into a bear market as signs of healthy supplies and rising stockpiles offset attempts by OPEC+ leaders Saudi Arabia and Russia to keep declines in check.

West Texas Intermediate traded near $73 a barrel after dropping more than 20% drop from a high in September. Brent plunged almost 5% on Thursday. The declines followed a build in US crude inventories, and were likely amplified by automated selling programs.