Barometers snap 8-day streak; Sensex drops 416 pts, Nifty ends at 18,696.10

Domestic equity barometers tumbled on Friday, snapping their eight-day rising streak. Negative global cues triggered profit selling in domestic shares. The Nifty 50 index settled below the 18,700 level after hitting a record high of 18,887.60 in the previous session.

The barometer index, the S&P BSE Sensex, fell 415.69 points or 0.66% to 62,868.50. The Nifty 50 index shed 116.40 points or 0.62% to 18,696.10. In the past eight sessions, the Sensex jumped 3.5% while the Nifty climbed 3.59%.

Hindustan Unilever (down 2.08%), HDFC (down 1.32%), Infosys (down 1.15%), ICICI Bank (down 0.97%) and HDFC Bank (down 0.74%) were major drags.

The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index rose 0.80% while the S&P BSE Small-Cap index added 0.70%.

The market breadth was positive. On the BSE, 2,030 shares rose and 1,455 shares fell. A total of 136 shares were unchanged.

The Nifty Media index (up 1.22%), the Nifty Realty index (up 0.94%) and the Nifty Metal index (up 0.44%) outperformed the Nifty.The Nifty Financial Services index (down 0.62%) and the Nifty Auto index (down 1.1%) underperformed the Nifty.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.2215 compared with 7.210 at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.335, compared with its close of 81.265 during the previous trading session.

MCX Gold futures for 5 December 2022 settlement added 0.19% to Rs 53,337.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.19% to 104.53.

The United States 10-year bond yield fell 0.44% to 3.512.

In the commodities market, Brent crude for February 2023 settlement rose 10 cents or 0.11% to $87.07 a barrel.

Economy:

India`s gross Goods and Services Tax (GST) revenue collection in the last month was over Rs 1,45,000 crore. This is the straight ninth month when the monthly GST revenue collection is more than Rs 1,40,000 crore.

The Finance Ministry said GST revenue collection in the month of November 2022 has registered a growth of 11% in comparison to the corresponding month of the last year. It said more than Rs 1,31,000 crore worth of GST collection were made in November 2021.

Global Markets:

Shares in Europe and Asia tumbled on Friday, as investors closely monitored news from China over its zero-Covid policy and looked ahead to U.S. non-farm payrolls data.

South Korea`s consumer prices rose 5% in November from a year earlier, government data showed on Friday. The November inflation rate compared with 5.7% in October. The country`s inflation rate has been falling since hitting a 24-year high of 6.3% in July as global energy prices eased and the economy slowed.

US stocks ended mixed on Thursday as investors awaited jobs data coming Friday that could determine the pace of the Federal Reserve`s future rate tightening.

Stocks in Spotlight:

Maruti Suzuki India fell 1.58%. The company announced today that it plans to hike prices of its vehicles in January 2023. The hike shall vary across models.

Separately, Maruti Suzuki said that its total vehicle production rose 4.96% year-on-year to 152,786 units in November 2022.

Bajaj Hindusthan Sugar hit an upper circuit limit of 20% after the company said that it has settled entire overdues towards term loan installments till September 2022. The sugar manufacturer has also cleared term loan interests till November 2022 and optionally convertible debentures (OCD) coupon, payable for FY 2022 to all the lenders.

One 97 Communications (Paytm) jumped 7.06% to Rs 536.90, extending gains for the second trading session. The stock hit has jumped over 22% from its record low of Rs 439.60 hit on 24 November 2022.

Paytm on Thursday (1 December 2022) informed that at present it makes net payment margin of 7 to 9 bps of GMV on processing. Of which UPI gives us 3 to 4 bps and other instruments give 15 to 18 bps. "Since UPI is growing faster than other instruments, we expect blended margin to stabilize at 5 to 7 bps," the company said.

The company believes that the current phase is the early days of payments in India. UPI has about 25 crore signed up customers, and there are only total of about 1 crore devices in market.

Eicher Motors slipped 3.07%. The company`s total motorcycles (Royal Enfield) sales jumped 37% to 70,766 units in November 2022 from 51,654 units sold in November 2021. While sales of motorcycle models with engine capacity up to 350cc surged 52% to 65,956 units, sales of motorcycle models with engine capacity exceeding 350cc skid 42% to 4,810 units in November 2022 over November 2021. The International Business recorded sales of 5,006 units in November 2022, which is lower by 27% as compared with 6,824 units sold in November 2021.

Hero MotoCorp declined 1.69%. The world`s largest manufacturer of motorcycles and scooters sold 390,932 units of two-wheelers in November 2022, a growth of 12% over the corresponding month of the previous year. The company`s motorcycle sales stood at 3,52,834 units (up 7.18% YoY) and scooters sales were at 38,098 units (up 88.53% YoY) in November 2022. Total domestic rose 15.50% YoY to 3,79,839 units while total exports dropped 45.97% YoY to 11,093 units in November 2022 over November.

Godrej Properties rose 0.55%. The Mumbai-based real estate developer said that it has acquired around 18.6-acre land parcel in Kandivali, Mumbai. The project will have a developable potential of approximately 3.72 million square feet with an estimated revenue potential of approximately Rs 7,000 crore,

Ashiana Housing added 1.07% after the company entered into an agreement to develop a group housing project with approximate saleable area of 4.00 lakh sq. ft at Murlipura in Jaipur, Rajasthan.

SJVN shed 0.13%. The company said that its wholly owned subsidiary, SJVN Green Energy has signed a memorandum of understanding with Grid Corporation of Odisha for developing 1000 MW Hydro Electric Projects and 2000 MW Solar Power Projects in Odisha.

MOIL rallied 4.30% after the company`s production jumped 60% sequentially to 1.2 lakh tonne in November 2022. On the sales front, MOIL said that it has recorded a growth of 82% during the period over the previous month, in spite of challenging market conditions.

Punjab National Bank (PNB) gained 1.50% after the public sector lender said it raised Rs 4,000 crore by issuing bonds at a coupon of 7.89% per annum on a private placement basis.

Spandana Sphoorty Financial rose 0.91% after its board approved issue of non-convertible debentures (NCDs) upto Rs 100 crore only including green-shoe option of Rs 50 crore only on private placement basis.

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