Market Live: Sensex falls 100 pts, all sectoral indices in red; Axis Bank rises 2%

12:45 pm Axis Bank in focus: Capital Square Partners has acquired Aegis BPO from Essar Group for USD 300 million.

The Essar Group will repay debt of various financial institutions including Axis Bank from BPO business sale.

12:40 pm Market Check: Equity benchmarks extended losses in afternoon, with the Sensex falling 112.87 points to 33,566.37. Index heavyweights ITC, Infosys, Reliance Industries and banking & financials stocks were under pressure.

The 50-share NSE Nifty was down 37.50 points at 10,352.20 but the market breadth was positive. About 1,416 shares advanced against 1,037 declining shares on the BSE.

12:32 pm HDFC MF Listing: HDFC, India’s largest financial conglomerate, is looking to get its mutual fund, HDFC Mutual listed on stock exchanges in a year’s time as part of a broader plan to unlock shareholder value.

“(For listing of) HDFC Mutual we are discussing with our partner, Standard Life. Once we are ready with a decision, we will certainly communicate,” Keki Mistry, HDFC vice chairman and CEO, told Moneycontrol in an exclusive interview.

“My sense is that in the next 12 months we should look at a listing for sure,” Mistry said.

The proposed merger of the HDFC Ltd with HDFC Bank, however, has been put off because of regulatory hurdles. “Without regulatory concession, a merger is very difficult,” Mistry said. “It is not something we are working on at the moment.”

“The company has further obtained orders in this month for supply of LED street lights under SLNP (Street light National Program) and for supply of super efficient (BLDC) fan, aggregating to Rs 72.95 crore from Energy Efficiency Services Ltd,” Surya Roshni said in a regulatory filing.

Earlier this month, the company informed BSE that it received orders through competitive e-bidding for LED street lights amounting to Rs 89.77 crore for supply of 2.89 lakh LED street lights across India from EESL.

12:05 pm FII View: Chetan Ahya, Co-Head of Global Economics & Chief Asia Economist, Morgan Stanley said the house is expecting the second quarter (Q2) GDP number which will be announced on Thursday to be around 6.5 percent, which will confirm a turn in the growth environment that will be reported in September quarter and that trend is expected to continue.

The moderation seen in the data points in October could be a temporary downtick, while the underlying fundamentals of the economy are good enough to bring recovery back again, said Ahya.

According to him, in FY19, all the drivers of growth would be in place – with pick up in consumption, exports to be held back at reasonable level, global growth to be stronger and missing link of capex will also pick up going forward from 7 percent of GDP right now to 8.5 percent by March FY20. “So the private capex joining in will bring the strength in India growth numbers that we are forecasting for it to go to 7.5 percent in March FY19,” he added.

When asked about their expectation from the Reserve Bank of India monetary policy next month, he said they expect them to maintain a neutral stance by highlighting upside risks building from higher oil.

Here are the top headlines at 12 pm from Moneycontrol News’ Anchal Pathak

11:25 am Drug Approval: Drug firm Zydus Cadila today said it has received final approval from the US health regulator to market topiramate extended release capsules, used for treatment of seizures and migraine.

The company has received approval from the US Food and Drug Administration (USFDA) to market the drug in strengths of 25 mg, 50 mg and 100 mg, Zydus Cadila said in a BSE filing.

The company said it will manufacture the drug at the group’s manufacturing facility at Moraiya, Ahmedabad.

Zydus Cadila has more than 170 approvals and has so far filed over 310 abbreviated new drug applications (ANDAs) since it commenced filings in 2003-04.

11:10 am Buzzing: Share price of Kridhan Infra rose more than 6 percent intraday as its subsidiary bagged contracts worth Rs 105.6 crore.

The company’s subsidiary KH Foges Pte has recently been awarded 3 new piling contracts worth USD 22 million (Rs 1,056 million) in Singapore.

The contract period for these projects are between 2.5 months to 5 months.

The contract includes piling works for industrial development at woodlands north coast, piling work for proposed public housing development comprising 2 blocks of 18 storey residential building and sub-contract for secant bored piling works.

Kridhan Infra has evolved into a leading EPC company in Singapore through the acquisition of Swee Hong.

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11:05 am Deutsche on GIC Re: Global brokerage house Deutsche Bank has initiated coverage with hold rating on General Insurance Corporation of India and set a target price at Rs 830 per share, saying it is a leading Indian reinsurer but the risk-reward is balanced.

“Positives are dominant 60 percent market share, improving financials and combined ratio at 100 percent while negatives are B2B model, tightening competition and investment income driving profits,” the research house said.

It feels the competitive landscape is getting incrementally tighter as insurance regulator IRDAI allowed foreign reinsurers to open branches in India.

Deutsche Bank expects combined ratio to exhibit modest improvement hereon.

“We expect combined ratio of 99 percent and return on equity of 17-18 percent over FY18-20. We expect net written premium/net profit to grow at CAGR of 14/13 percent over FY18-20,” the research house said.

10:50 am Market Check: Equity benchmarks continued to trade mildly lower in morning, dragged by FMCG, oil marketing companies, technology and select banking & financials stocks.

The 30-share BSE Sensex was down 70.53 points at 33,608.71 and the 50-share NSE Nifty declined 30.70 points to 10,359.

The broader markets outperformed benchmarks, with the BSE Midcap index rising 0.2 percent and Smallcap up 0.4 percent on positive breadth. About 1,391 shares advanced against 847 declining shares on the BSE.

10:44 am Earnings leak: National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), the two leading stock exchanges in the country, have written to at least 12 companies whose earnings were leaked on WhatsApp before their scheduled earnings announcement, according to a media report.

Securities and Exchange Board of India (SEBI) chief Ajay Tyagi on November 17 had said the regulator will investigate possible leaks of company earnings in social media chatrooms.

10:26 am Oil update: US oil prices dipped on Monday, easing from two-year highs on the prospect of increased US output, although global markets were slightly better supported by expectations an OPEC-led supply cut will be extended.

US West Texas Intermediate (WTI) crude futures were at USD 58.70 a barrel, down 0.42 percent, from their last settlement. Brent crude futures fell just 0.03 percent, to $ 63.84 a barrel.

US crude production has risen by 15 percent since mid-2016 to 9.66 million barrels per day (bpd), not far from top producers Russia and Saudi Arabia, and increasing drilling activity for new production means output is expected to grow further, traders said.

10:02 am CS upgrades Mindtree: Credit Suisse has upgraded IT firm Mindtree to outperform from neutral and increased its target price for the stock to Rs 600 (from Rs 460), citing earnings growth ahead.

The target price implies 17 percent upside from Friday’s closing price. The stock price gained more than 3 percent in morning Monday.

The research house expects Mindtree to post industry leading revenue growth and margin expansion from low base.

“Revenue challenges are behind as top clients seem stable. Bluefin grew in Q2 and Magnet appears to have bottomed out,” it said.

Its earnings had been impacted due to revenue loss from some top clients and challenges faced by Bluefin & Magnet.

Credit Suisse expects FY20 EBITDA margin at 15 percent against 11.6 percent in Q2FY18. Attractive earnings growth will be supported by 23 percent EBITDA CAGR for 2 years, it feels.

Here are the top headlines at 10 am from Moneycontrol News’ Anchal Pathak

9:52 am Stake Buy: Quess Corp has signed definitive agreements to acquire 51 percent equity in Trimax Smart Infraprojects Private Limited on November 24, 2017.

Trimax is proposed to be operated as a joint venture between Quess Corp and Trimax IT Infrastructure and Services to implement smart city project in Ahmedabad.

Transaction is expected to be completed by December 15, 2017.

9:42 am Management Interview: The upcoming IPO of Future Supply Chain Solutions, which is expected the garner over Rs 700 crore, is primarily to give an exit to private equity firm Griffin Partners, Future Group Chairman Kishore Biyani said.

Future Supply Chain Solutions (FSCSL), a subsidiary of Future Enterprises, has filed a draft red herring prospectus with Sebi for the public issue of up to about 97.84 lakh equity shares representing 24.43 percent of the existing paid-up equity share capital of FSCSL.

While private equity firm SSG Capital’s entity Griffin Partners will sell about 78.27 lakh equity shares in FSCSL, representing up to 20 percent of the paid-up equity share capital, the promoter company Future Enterprises will offload 19.57 lakh shares, representing around 5 percent stake.

According to Biyani, FSCSL, the logistics arm of the group, is well capitalised and payment of debt or requirement of immediate funds is not the reason for the IPO.

9:32 am Order Win: L&T Construction, the subsidiary of Larsen & Toubro, has bagged orders worth Rs 3,572 crore under transportation infrastructure, metallurgical & material handling, power transmission & distribution, and buildings & factories segments.

9:27 am Inorganic Growth: Hyderabad-based Aurobindo Pharma is looking at inorganic growth opportunities in Eastern Europe and other geographies for deeper market penetration and to secure newer technologies.

Apart from acquisitions, the company is also keen to expand its product portfolio in the US and Western European markets with high-value drugs.

The high-value products that are in the pipeline include oncology, hormones, depot injections, peptides, inhalers, patches and films, vaccines and biosimilars, the company said.

“Our acquisition strategy will be largely around two platforms. One is to penetrate markets deeper and the other to secure newer technologies and platforms. We always maintain that anything that can come across in Eastern Europe will be prioritised,” Aurobindo Pharma’s managing director N Govindarajan said in an earnings presentation.

News Live: LIC books Rs 13,500cr trading profit in April-September period, says report

9:20 am Buzzing: Shares of Cupid rose nearly 4 percent in early trade on order win from UNFPA.

The company has received a new order from United National Population Fund (UNFPA) to supply female condoms for the first time to Malawi, Africa worth Rs 1.36 crore.

The company had reported 11 percent increase in its Q2 net profit at Rs 5.95 crore against Rs 5.36 crore in the same quarter last fiscal.

9:15 am Market Check: Equity benchmarks started off the week on a negative note on Monday, weighed by banks after the S&P retained its India’s rating at BBB- and outlook stable. Weak Asian cues also weighed on sentiment.

The 30-share BSE Sensex was down 77.25 points at 33,601.99 and the 50-share NSE Nifty fell 35.30 points to 10,354.40.

ONGC, L&T, Bosh, Dr Reddy’s Labs and Power Grid were early gainers while Sun Pharma, Vedanta, HPCL and Tata Motors were losers.

Nifty Midcap was down 0.4 percent.

Bharat Bijlee, Suzlon Energy, Autoline Industries, GPT Infra, Inox Wind and KEC International gained 1-5 percent.

Quess Corp, Edelweiss Financial, Reliance Communications, SBI, Bank of Baroda, Axis Bank, Yes Bank, BHEL and Crompton Consumer were under pressure.
Asian indexes edged down despite the firmer lead from Wall Street last week. Chinese markets traded lower as investors kept an eye on developments in the bond market while South Korea’s Kospi slid on weakness in tech names.