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Benchmark indices closed lower snapping four-week rising trend as investors booked profits and due to weak global sentiments. For the week, the Sensex lost 0.21% to 61,663.48. The Nifty 50 index declined 0.23% to 18,307.65.
Broader markets also mirrored benchmark indices. The BSE Midcap index fell 1.30% to 25,134.92. The BSE Smallcap index shed 0.81% to settle at 28,750.11.
Top losers among Nifty sectoral indices were Media [-5.37%], Auto [-2.04%], FMCG [-1.74%], Energy [-1.73%] and Pharma [-1.19%]. Top gainers were PSU Bank [2.35%], Bank [0.71%] and IT [0.26%].
During the week, FIIs were net buyer for Rs 349.2 crore and DIIs were net buyers for Rs 2,274.9 crore.
Company News
State Bank of India (SBI): The country’s largest bank has signed a 150 million euro (Rs 1,240 crore) agreement with German development bank KfW to finance various solar power projects in India. The long-term loan under the Indo-German solar partnership will facilitate new and upcoming capacities in the solar sector and further contribute to the country’s goals announced during the COP26, the bank said in a statement.
HDFC: The mortgage lender will raise up to Rs 5,500 crore by issuing bonds on private placement basis to shore up its resources on Wednesday. The secured redeemable non-convertible debentures (NCDs) issue will have a base size of Rs 4,000 crore with an option to retain oversubscription of up to Rs 1,500 crore.
Tata Motors: Shares of the company fell 2.77% in intraday trade on the NSE after the company announced that JLR chief Thierry Bolloré will resign with effect from December 31, 2022, due to personal reasons. Adrian Mardell, who is currently a member of the company’s executive board, will take over as CEO on an interim basis.
Meanwhile, the Tata group-owned Jaguar Land Rover is looking for partners to improve semiconductor supplies, as it looks to ramp up sales volume in the second half of the current financial year. The automaker noted that despite strong demand and a record order book, sales during the second quarter continued to be constrained by the global chip shortage.
In other news, the commercial vehicle manufacturer has secured orders for supplying 1000 buses to Haryana Roadways. Tata Motors will supply the 52-seater fully built BS6 diesel buses in a phased manner, according to the contract.
Public Sector Banks: The Indian government has raised the maximum tenure of CEO and MD of public sector banks to 10 years to retain talent. As per a government notification dated November 17, the term for the appointment has been extended to 10 years, from the earlier 5 years, subject to superannuation age of 60 years. Earlier, the MD or executive director of a public sector undertaking (PSU) bank was eligible for a maximum tenure of 5 years or 60 years whichever was earlier. The PSU Bank index rose 1.53%.
Union Bank of India: Shares of the lender rose over 5% in Friday’s intraday trade. In the past one month, shares of the lender has zoomed 61%, as against 4% rise in the benchmark BSE Sensex. The sharp rally in stock price saw its market capitalisation breach Rs 50,000 crore-mark.
R Systems International: Shares of the company jumped over 16% in intraday trade after the US-based investment fund Blackstone will buy a majority stake of 52% in the company for Rs 2,904 crore. Blackstone has a signed definitive agreements with Satinder Singh Rekhi and other current promoters to purchase a majority stake in R Systems , the companies said in a statement. Blackstone will acquire the company shares for Rs 245 per share and Blackstone will also launch a conditional delisting offer, at a price of Rs 246 per share.
Aditya Birla Fashion & Retail (ABFRL): The apparel retailer has entered into a strategic partnership with Galeries Lafayette, renowned globally for its flagship location at Boulevard Haussmann in Paris, to open luxury department stores and a dedicated e-commerce platform in India. The flagship stores in Mumbai and Delhi will bring more than 200 luxury and designer brands under one roof. The 90,000 square feet flagship store in Mumbai is expected to be operational by 2024.
One 97 Communications: A host of investment funds including BOFA Securities Europe SA, Morgan Stanley Asia Singapore PTE and Societe Generale – ODI bought Paytm shares worth Rs 1,005 crore through open market transactions at an average price of Rs 555 apiece. Meanwhile, SVF India Holdings (Cayman) offloaded 2.93 crore shares in Paytm at an average price of Rs 555.67 per share, which are worth Rs 1,630.89 crore. SVF as of September 2022 held 11.32 crore shares or 17.45% stake in Paytm.
Japan-based SoftBank is planning to offload $215 million worth shares in Paytm as lock-in for pre-IPO investors ends later this week, Bloomberg reported. Softbank is planning to sell 29 million shares in the company at Rs 555 to Rs 601.45 apiece, at a discount of up to 7.72% to the current market price.
FSN E-Commerce Ventures (Nykaa): Citigroup has launched a block deal to sell shares in cosmetics-to-fashion retailer Nykaa, worth $125 million or Rs 1,000 crore, CNBC Awaaz reported. US-based private equity firm, TPG Capital, is the seller in the block deal, which would provide 0.5% discount from the ongoing rate. This comes a few days after the lock-in period for pre-IPO investors ended.
Bharat Electronics: The defence PSU has signed a MoU with Armoured Vehicles Nigam Limited (AVNL). The MoU aims at leveraging the complementary strengths and capabilities of BEL and AVNL (AVANI) to address domestic and export opportunities in the areas of Combat Vehicles, Main Battle Tanks (MBTs), Infantry Fighting Vehicles (IFVs), Armored Fighting Vehicles (AFVs) and related systems. It has also signed a MoU with Advanced Weapons and Equipment India (AWEIL), a defence PSU.
Page Industries: The clothing manufacturer said it will invest Rs 290 crore to set up two facilities in Telangana. The new units will provide a total employment to 7,000 local youngsters. It will manufacture garments which include sportswear and athleisure wear.
Economy News
India’s retail inflation measured by the Consumer Price Index (CPI) fell to a three-month low of 6.77% in October 2022, down from 7.41% in September 2022. The overall food inflation, which accounts for nearly half the CPI basket, stood at 7.01% in October as against 8.60% in the preceding month.
India’s inflation based on wholesale price declined to a 19-month low of 8.39% in October 2022, on easing fuel prices and manufactured goods prices. “Decline in the rate of inflation in October 2022 is primarily contributed by fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; minerals etc,” the commerce and industry ministry said in its press release.
Meanwhile, India’s industrial growth based on Index of Industrial Production (IIP) rose to 3.1% in September 2022, government data showed. The growth was primarily owing to a rise in manufacturing and mining outputs. The IIP had risen 4.4% in September 2021. According to the government data, the output of the manufacturing sector rose 1.8% in September 2022 as against a 4.3% growth recorded in the year-ago period, according to latest data from the National Statistical Office (NSO).
In other economic news, India’s overall exports including merchandise and services combined stood at $58.36 billion in October 2022, up 4.03% year-on-year, while imports are estimated to be around $73 billion, up 11.82% year-on-year.
Export sectors that recorded negative growth included gems and jewellery (21.56%), engineering (21.26%), petroleum products (11.28%), ready-made garments of all textiles (21.16%), chemicals (16.44%), pharma (9.24%), marine products (10.83%), and leather (5.84%). Meanwhile, oil imports rose by 29.1% to USD 15.8 billion. Gold imports, however, declined by 27.47% to USD 3.7 billion during the month.
Global Markets
The US markets fell as investors were worried over persistent high inflation and hawkish comments from Fed’s James Bullard. St. Louis Fed President James Bullard said policymakers should increase interest rates to at least 5% to 5.25% to curb inflation. For the week, the S&P 500 dropped 0.69%, the Dow was unchanged and the Nasdaq shed 1.57%.
In economic news, the producer price index for final demand rose 0.2% in October 2022. Data for September was revised lower to show the PPI rising 0.2% instead of 0.4% as reported earlier. In the 12 months through October, the PPI increased 8.0%, which was the smallest year-on-year increase since July 2021.
Meanwhile, retail sales in the US jumped 1.3% in October to $694.5 billion, led by higher gas prices and auto sales. Retail Sales were up 0.9% excluding gas and auto sales. Separately, the number of Americans filing new claims for unemployment benefits fell last week. Initial claims for state unemployment benefits dropped 4,000 to a seasonally adjusted 222,000 for the week ended November 12, the Labor Department said on Thursday.
Chinese stocks ended moderately positive for the week, with the Shanghai Composite index rising 0.32%, the CSI 300 index gaining 0.35% and Hang Seng index jumping 3.85%.
In the economic data front, China’s industrial production grew 5% in the month of October compared with a year ago, slowing from an increase of 6.3% seen in September. Separately, China’s retail sales declined 0.5% in October from a year ago.
Japanese equity markets fell over the week as economic growth slowed down, with the Nikkei 225 index declining 1.29% and the broader Topix index falling 0.54%. Gross domestic product contracted by 1.2% in the July-to-September quarter compared with the same period last year.
Separately, Japan’s core consumer price index for October rose 3.6% compared to a year ago. The country’s inflation reading was higher-than-expected and grew at the fastest pace in 40 years.