Closing Bell: Sensex ends 282 points higher, Nifty above 12,850; financials rally

Indian indices ended higher on Friday mainly led by gains in financials. IT and FMCG stocks also contributed to the gains. The Sensex 282 points higher at 43,882 while the Nifty rose 72 points to settle at 12,844. For the week, the benchmarks ended around a percent higher. Broader markets were also higher with the Nifty Midcap and Nifty Smallcap indices up 0.8 percent and 1.2 percent, respectively. Among sectors, Nifty Fin Services and Nifty IT rose 1.5 percent each while Nifty FMCG rose 1 percent. Nifty Bank was also u 0.8 percent and Nifty Metal added 0.5 percent. However, Nifty Media and Nifty Pharma ended the day in the red. On the Nifty50 index, Bajaj Finserv, Titan, GAIL, Bajaj Finance and Bharti Airtel rose the most while RIL, Adani Ports, IndusInd Bank, Axis Bank and Sun Pharma led the losses.

Nov 20, 2020 3:33 PM

Planning to add cement stocks to your portfolio? Here's JM Financial's outlook for the sector

The cement sector has delivered a positive surprise in the September quarter earnings. The consolidated volume growth for 14 listed companies was 5 percent year-on-year (YoY) in Q2FY21 due to the sustained rural demand and overall pick-up in the infrastructure segment, said global brokerage firm JM Financial. According to the brokerage house, the cement sector remains healthy even more so as companies have upped their volume guidance. The gradual reopening of the economy has fared well for the realty sector and the businesses associated with it. Steady demand in residential property has led to company managements staying positive on the future growth given that they're gearing to resume capex now. More here

Nov 20, 2020 3:25 PM

Govt's 'Aatmanirbhar Bharat' plan propelling defence industry, says BEL

“The ‘Aatmanirbhar Bharat’ plan of government of India is propelling a big boost in the Indian defence industry,” MV Gowtama, CMD, BEL said in an interview with CNBC-TV18. Get latest Business online…

Nov 20, 2020 3:16 PM

Nifty close to highest valuation multiple, core economy sectors to do well: CLSA

Vikash Kumar Jain, Invest Analyst-India Market at CLSA believes that core economy sectors like banks and infrastructure will do well going forward. “Core economy sectors like banks, some of the other domestic sectors like materials, some infra names should start looking up and that’s the side of COVID impacted stocks that we will be focusing on,” he added. CLSA’s fundamental opinion is that the beta part of the rally is largely done and now it’s more towards sector rotation and that’s the interesting trade. According to Jain, Nifty is very close to the highest valuation multiple. “2020 was about COVID impact, next year will be about recovery,” he added. For entire interview, watch video

Nov 20, 2020 3:07 PM

COVID-19 vaccine: Have the global markets priced it in? UBS tells where to invest

Global markets have been on a high on the back of positive developments across the COVID-29 vaccines. As per brokerage house UBS, in a scenario where the world comes close to herd immunity by the end of 2021 either by the rapid rollout of vaccine or if the efficacy of the vaccine is high, market moves could seriously accelerate. However, the brokerage added that it will not be easy to get 3-4 billion doses next year, and preparing for deep refrigeration storage. Markets are likely to price the vaccine development in now before acknowledging logistical challenges, it further explained.

UBS also noted that since April, vaccine hopes have contributed a median 15.3 percent upside across markets. Liquidity has been the main driver of markets over the last six months, but its contribution has flattened over the last two months, however, recently, the vaccine hope has become a bigger driver, it stated.

As per UBS, the vaccine is 80-85 percent priced in growth stocks while 60-70 percent priced in Value stocks, therefore have more upside potential. The brokerage estimates further 3-4 percent gains for growth indices and 6-7 percent for value indices before the vaccine is fully priced in. Read more here.

Nov 20, 2020 2:52 PM

BPCL Divestment | Government sources told CNBC-TV18, that they were not expecting bids from giants like Saudi Aramco and Reliance Industries. The government is keen to divest BPCL's stake now as the world moving to renewables. Given the global shift to renewable energy, Finance Minister feels that the government can get the right valuation now. The finance minister is evaluating proposals submitted for BPCL divestment, they added.

Nov 20, 2020 2:45 PM

Jyoti Roy- DVP- Equity Strategist, Angel Broking Ltd

TCS Ltd. has announced that the company has fixed record date of November 28, 2020, for the Rs 16,000 crore share buyback programme announced by the company during the Q2FY21 numbers. The company had announced that it would consider a share buyback of upto Rs 16000 crore at a price of Rs 3000 per share which is at a premium to current market price.

However, the acceptance ratio for TCS buyback is expected to be lower than that of Wipro given more widespread holdings by retail investors in TCS as compared to Wipro. Amongst large cap IT companies both Wipro too has announced a buyback of Rs 9,500 crore. We expect more IT companies to reward shareholders in the form of buybacks going forward as most of them have large surplus cash on books.

Nov 20, 2020 2:38 PM

Nov 20, 2020 2:22 PM

L&T Technology Services | The company has been selected as a consulting and professional services (CPS) provider to support Amazon Alexa Voice Service (AVS) integration in various connected devices spanning multiple domains and industries.

Nov 20, 2020 2:06 PM

These 18 stocks have risen 100-600 percent so far in 2020

18 stocks from the BSE500 index have more than doubled investor money in 2020 so far, with one rising up to 620 percent.Get latest Market online at cnbctv18.com

Nov 20, 2020 1:55 PM

Buzzing | Bharti Infratel jumps over 13% on completion of merger with Indus Towers; Vodafone Idea up 4%

The share price of Bharti Infratel surged over 13 percent on Friday after it completed its merger with Indus Towers. It rose as much as 13.6 percent to its day’s high of Rs 210.85 per share on the BSE.

“Merger of Indus Towers Limited & Bharti Infratel Limited has been completed today. The combined entity, to be renamed as Indus Towers Limited, is listed on the National Stock Exchange of India Limited & BSE Limited,” Bharti Airtel said in a filing.

After the merger, Bharti Airtel’s stake in the firm will be over 36.7 percent from 53.5 percent earlier whereas Vodafone will hold a 28 percent stake after selling its 11 percent stake.

Vodafone Idea also jumped over 4 percent after the telecom company received Rs 3,760.1 crore cash consideration for its 11.15 percent holding in Indus Towers.

Nov 20, 2020 1:45 PM

Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking

In last 3 days, there is a lot of positive news are coming for Vodafone Idea (VIL) such as (a) on completion of Bharti Infratel and indus tower mega-merger, VIL receives Rs,3760 crore 2) Possibility of capital infusion from a consortium led by Oaktree Capital Management for capital expenditure and debt servicing. The above news is positive for all lenders, and IDFC First bank has Rs 3,244 crore exposure (Funded – Rs. 2,000cr and Non-Funded – Rs. 1,244cr) which is 18% of net worth and had 50% provision on it. However, in Q2FY21 Bank has released Rs 811crore against a VIL Exposure based on improved prospects and management commentary at the company, and utilized it to create additional COVID provisions during Q2 FY 21.

If Balancesheet of VIL improves further than IDFC First Bank can additionally write back remaining provision to strengthen balance sheet for future uncertainties and built additional non-specific provision which will provide comfort to an investor. In the last few quarters, IDFC first bank has been able to build liability (CASA and retail deposit) which will help them to reduce high-cost borrowing, and eventually, retail customers will increase daily cash management activity into IDFC first infrastructure. Presently IDFC First Bank is trading at 1x FY22 Book value which is reasonable considering retail mix and growth in liability franchise. We have a Buy rating on IDFC First bank.

Nov 20, 2020 1:29 PM

CLSA has raised target price for this NBFC. Do you own it?

The share price of Shriram Transport rose over 3 percent on Friday after global brokerage house CLSA reiterated an 'outperform' rating and raised its target price from Rs 800 to Rs 1,050 per share.

As per the brokerage, Shriram Transport management continues to see faster-than-expected recovery with 93 percent collection efficiency after Q2. Given this trend, management is optimistic for pre-Covid-level disbursements to be achieved by December, it added.

The stock rose as much as 3.3 percent to its day's high of Rs 949.90 per share on the BSE. The stock price has gained 38 percent in the last 1 month. It has outperformed Nifty by 20 percent in the last three months rising 32 percent in that period.

For FY22-23. CLSA estimates an AUM growth of 10 percent YoY. "This is slightly conservative versus guidance of double-digit YoY growth. We cut estimated FY21-22 credit costs 78-55 bps although we continue to be cautious in an evolving economic environment," added the brokerage.Read more

Nov 20, 2020 1:15 PM

Gold rate today: Yellow metal trades higher; may face resistance at Rs 50,700 per 10 gms level

Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Friday on concerns over rising coronavirus infection cases amid a muted trend in the international spot prices. Silver price also rose above Rs 62,000 level.

At 11:20 am, gold futures for December delivery rose 0.34 percent to Rs 50,160 per 10 grams as against the previous close of Rs 49,992 and the opening price of Rs 50,041 on the MCX. Silver futures traded 0.79 percent higher at Rs 61,995 per kg. The prices opened at Rs 61,610 as compared to the previous close of Rs 61,510 per kg.

“Concerns over the second wave of coronavirus infections and new lockdown in several countries is supporting gold prices. Further, weakness in US dollar and short-covering due to weekend may push bullion prices higher for today,” said Ajay Kedia, director, Kedia Commodity Comtrade. Read more

Nov 20, 2020 1:06 PM

Festive season 2020 has been at 75% Vs last festive season. Experimenting with smaller-sized stores in tier-IV towns, says V-Mart

Nov 20, 2020 12:46 PM

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