The demonetisation drive of the government is likely to see some protests on the street in various parts of the country as few political parties have joined hands for ‘Akrosh Divas.’
Parliament may see less activity today as attention will be on the protests and dealing with the Opposition tirade. The old tradition of Black Friday is losing its charm abroad; online sales on Thanksgiving and Black Friday rose about 18 pc to $5.27 bn.
The outlook is a cautious start. Nifty and Bank Nifty have cracked 7.6 and 6.5% respectively in November series. PSU Bank stocks could see weakness following the RBI move to mop up excess liquidity; banks have to keep aside deposits collected between Sept 16 and Nov 11 with the central bank. Saudi Arabia seems to suggest that oil producers need not reduce output. With the Dow Jones having crossed the key milestone of 19000 & the S&P 2200 markets could see consolidation globally as investors take stock of the last fortnight. Also the rise in bond yields in tandem with the US $ may not last & pause here would be prudent as markets digest the gains.
Falling crude prices cooled Asian shares while the dollar has stepped back against Asian peers. India’s foreign exchange reserves fell for the second consecutive by $1.542 bn to $365.5 bn in the week ended Nov 18.
Nifty saw a smart rally moving past 8100 & will now face headwinds around 8150. The sudden RBI move to raise the CRR over the weekend would see financials under pressure as bond yields would rise sharply.
IT outperformance could continue as most participants were under weight on this sector & with the rupee weakness it should see more short covering. Metals, Pharma & IT would see buying today with banks & NBFC under selling pressure.
Among the stocks to watch are:
Oil India: The company will announce its Q2 numbers today.
Cipla: Cipla Ltd is in discussions to sell Cipla Vet, its animal health division, as per media report. According to the report, the company hired global investment bank Rothschild to find potential buyers.
Ashok Leyland: Ashok Leyland has completed the acquisition of Nissan Motor Co. Ltd.’s stake in each of the three joint ventures formed between the two companies.
SpiceJet: SpiceJet reported a rise of 103% in its net profit for the second quarter of 2016-17. The company’s Q2 net profit stood at Rs 58.9 crore from Rs 29 crore reported in the corresponding quarter of 2015-16.
Aurobindo Pharma: Arrow Generiques SAS, the French subsidiary of Aurobindo Pharma, has signed an agreement to acquire select commercial products in France from Teva.
BEML: Thr company reported standalone net loss narrowed to Rs 16.6 crore for the second quarter ended September 30, 2016, against that of Rs 24.6 crore in the corresponding quarter of previous fiscal.
Strides Shasun: Strides Shasun’s wholly owned subsidiary Strides Arcolab International, UK has entered into an agreement with Moberg Pharma, Sweden to acquire the ‘PediaCare’ brand for a total consideration of $5 million plus inventory value at closing.
Hathway Cable & Datacom: The company has reported a net loss of Rs 40 crore for the quarter under review as compared to a net loss of Rs 32 crore for the same quarter in the previous year.
Larsen & Toubro: L&T Hydrocarbon Engineering, a wholly owned subsidiary of Larsen & Toubro (L&T) has unveiled high-tech spool base facilities at L&T’s fabrication facility at Kattupalli, in Chennai.
Rajshree Sugars & Chemicals: The company has entered into a share purchase agreement with the prospective buyer, for the sale of the wholly-owned subsidiary Company Trident Sugars, having the sugar factory at Telangana. As per the said agreement, the prospective buyer is expected to close the sale transaction by March 31, 2017.
GPT Infraprojects: GPT Infraprojects announced bourses that it has bagged an order value at Rs 73 crore from Rail Vikas Nigam Ltd.
Uflex: Packaging company Uflex reported 17% rise in consolidated net profit to Rs 90 crore for the quarter ended on September 30, 2016. It had posted a net profit of Rs 77 crore for July-September quarter in the year-ago period.
Steel Authority of India Limited: SAIL, Bhilai Steel Plant (BSP), is looking to develop and explore small mines to meet its iron-ore requirement.
State Bank of India: The bank said it will raise Rs 56.81 billion by issuance of preferential shares to the central government, its majority shareholder.