EQUITY REPORT FOR 21 NOVEMBER

ECONOMY ANALYSIS

• Nifty closes above 8400 amid M&A buzz
• Kotak Mahindra, ING Vysya rally 7% on acquisition buzz
• Bosch, Strides Arcolab, Amtek Auto up on NSE F&O inclusion
• CBI to probe RBI's role in Bank of Rajasthan merger case
• China Nov flash HSBC PMI falls to 50, output shrinks for first time in 6 months

MARKET ANALYSIS

• Equities held on to their late gains, with both the Sensex and Nifty closing above key 28,000 and 8,400 marks. At close, the Nifty rose 0.22 percent, or 19 points, to 8,401 while the Sensex gained 0.12 percent, or 34 points, to 28,067.
• Early in the day, high beta shares edged lower, but several sectors such as banks and oil & gas staged a smart recovery to close in the green. Metals and capital goods, though, closed 0.8 percent lower. But the best performers of the day were IT and pharma, both helped by a depreciation in the rupee. Cipla jumped 3.2 percent after announcing it had tied up with Serum Institute of India to launch vaccines in Europe.
• The IT pack got a further boost with Tech Mahindra rallying about 3 percent, amid speculation it would announce an acquisition at a press conference it has scheduled at 4 pm today.

Markets Sold off in Late Trade, with the Nifty Falling below 8,400

MARKET ANALYSIS

• Markets sold off in late trade, with the Nifty falling below 8,400 while the Sensex tested the 28,000 mark, before closing above it. At close, the Sensex was down 0.46 percent, or 130 points, to 28,032 while the Nifty was off 0.52 percent, or 44 points, to 8,382.
• The sell-off was largely broad-based but stocks that had run-up the most recently fell the most.
• High-beta shares such as metals and oil & gas witnessed 1 percent plus down move. Mid and small cap stocks have 0.6 percent. Logistics shares, which have risen manifold over the past one year saw ferocious selling, with stocks losing 6 to 10 percent. FMCG and IT were the only pockets that stood up in the decline.
• FMCG and IT were the only pockets that stood up in the decline.

ECONOMY ANALYSIS

• High-beta trade unwinds as Nifty ends below 8400
• Telcos in focus; DoT to split 2G, 3G, 4G spectrum auctions
• Franklin Templeton buys 3.34 lakh shares of Shakti Pumps
• Govt seeks suggestion on draft Mines & Mineral Bill
• Draft rules for coal block e-auctions likely today
• Hindalco up 3%; Goldman Sachs bullish on its Novelis biz

Sugar Stocks Rally On Exports Subsidy Hopes

ECONOMY ANALYSIS

• Nifty, Sensex end flat while broader mkt gains; sugar, logistics sizzle
• FTIL rises 7% as it decides to sell Mauritius-based bourse
• Sugar stocks rally on exports subsidy hopes
• Govt seeks suggestion on draft Mines & Mineral Bill
• Commodity slump threatens return to junk for top EM nations

MARKET ANALYSIS

• Blue-chips stocks drifted sideways Tuesday but most midcap and small caps continued their winning streaked and outperformed their large cap counterparts by a wide margin
• It was a choppy session that saw both Sensex and Nifty close flat with a negative bias after hitting fresh intra-day record levels in early trades. While banking and engineering stocks such as HDFC Bank, Larsen & Toubro cushioned the Nifty, defensive tech and pharma stocks such as TCS, Infosys and Sun Pharma dragged the benchmark back to where it closed yesterday.
• The BSE Sensex closed at 28,163 down 0.05 percent and the Nifty closed 0.06 percent lower at 8,426 levels.
• Foreign portfolio investors (FPIs) bought local shares worth Rs 656.37 crore yesterday, 17 November 2014, as per provisional data.

BSE Sensex Recoup Losses

MARKET ANALYSIS

• After falling over 100 points in trade on Monday tracking weak global cues, the S&P BSE Sensex managed to recoup losses and surged as much as 159 points in trade to hit its fresh record high of 28205.71.
• Trade deficit for October declined to $13.35 billion vs $14.3 billion, month-on-month MoM. India's exports in October slipped to $26.09 billion vs $28.9 billion, MoM while imports declined to $39.4 billion vs $43.2 billion, MoM.
• The S&P BSE Sensex which saw strong buying in the last one hour of trade pushed as much as 282 stocks to fresh 52-week highs on the BSE which include names like State Bank of India, HDFC Bank, Infosys, Tata MotorsBSE 4.07 %, Bajaj Auto, Asian Paints etc.
• The 30-share index finally closed at 28177.88, up 131.22 points or 0.47 per cent. It touched a record high of 28205.71 and a low of 27921.34 in trade today.

Record Close for Nifty

ECONOMY ANALYSIS

• Record close for Nifty; realty, metals jump, pharma drags
• October WPI hits multi-year low of 1.77%
• SBI Q2 net up at Rs 3100 cr, asset quality stable
• Brent edges above $78, near 4-yr low on glut, OPEC worries
• BHEL Q2 net slips 72% at Rs 125 cr; margins disappoint
• Fed on course for mid-2015 rate rise, job market to improve: Poll

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Tata Motors: Profit falls after domestic sales drop

NEWS PERCEPTION

• Sensex at fresh closing high, ends above 28K
• Tata Motors Q2 net falls 7% YoY to Rs 3291 cr
• India's GDP to grow at 6.3% in 2015: Morgan Stanley
• IEA sees new era, no quick rebound in oil prices
• DLF debt up 4% at Rs 19,944cr; to raise Rs 3,600cr
• Tata Motors says profit falls after domestic sales drop
• Tata Tele, NDMC to launch Wi-Fi service in CP
• DRDO to set up fund to support defence start-ups
• IAF hopes for early signing of MMRCA deal

NIFTY INCEPTIONS

• Positional Support for NIFTY 8290
• Positional Resistance of NIFTY is 8423
• Immediate resistance for NIFTY is 8400
• Intraday Support of NIFTY is 8320
• Oscillator Analysis The oscillator is showing BUY signal
• Short Term Oscillator Analysis- The signal is BUY
• Trade above 8420 will result in formation of new support at 8410 and new high can be seen in Index.

Whirlpool at Record High, Up 20%

ECONOMY ANALYSIS

• Sensex, Nifty falls; HPCL, BPCL slip 4-5% on excise hike
• Hindalco Q2 PAT slips 78% to Rs 78.7 cr on exceptional loss
• Whirlpool at record high, up 20% on ambitious growth plans
• Govt hikes excise on petrol, diesel by Rs 1.50 per litre
• Brent falls to around $80; OPEC expects lower demand in 2015
• MF invest Rs 32k cr in debt in Oct, total crosses Rs 5-tn mark

MARKET ANALYSIS

• Dalal Street ended the day flat with a negative bias. The market opened in the green but profit-booking crept in as the day wore on. The Sensex ended below 28000, down 68.26 points at 27940.64.
• The Nifty lost about 25 points after hitting the 8,400 mark for the second day in a row. The 50-share index closed at 8357.85. Banking, oil & gas and real estate stocks lost the most. Technology and pharma stocks were major gainers. Midcaps fared worse than the bluechips with the index losing nearly 80 points.
• Infosys, Dr Reddy's Labs, Bharti Airtel, Wipro and Bajaj Auto were top gainers while Tata Power, Sesa Sterlite, ONGC, GAIL and Hero MotoCorp were among the losers in the Sensex.
• Oil marketing stocks tumbled after the government hiked excise duty on petrol and diesel. According to CNBC-TV18, the govt may gain Rs 6,000 crore from the excise hike in rest of this fiscal.