The Nifty Financial Services index was down 0.77 per cent while Nifty Metal index jumped 2.14 per cent.Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic equity market benchmarks BSE Sensex and Nifty 50 were trading lower in the Wednesday’s session. BSE Sensex was hovering around 44,500, while the broader Nifty 50 index was ruling below 13,100 levels. Index heavyweights such as HDFC Bank, Infosys, Housing Development Finance Corporation (HDFC), ICICI Bank and Reliance Industries Ltd (RIL) were contributing the most to the indices’ loss. On the contrary, Asian Paints, Tata Steel, Titan Company, UltraTech Cement, Bajaj-Auto and HUL among others were top Sensex gainers. The trend among the Nifty sectoral indices was mixed. The Nifty Financial Services index was down 0.77 per cent while the Nifty Metal index jumped 2.14 per cent.
Burger King India’s IPO opens for the subscription. The fast-food major is just a little over half-a-decade old, and is one of the fastest-growing quick-service restaurant (QSR) chains in the country. Burger King and its promoters are looking to raise Rs 810 crore in the IPO through a combination of a fresh issue and an Offer For Sale (OFS). Burger King began operating in India in the financial year 2015, and has since seen rapid expansion to now owning 261 restaurants across the country.
Highlights
The wholesales in the festive month of November have held up with volumes growing in double digits for the car and 2W segment, while CVs have grown at ~5%. Tractor sales remained strong as demand is buoyant on the back of good monsoons. We believe that post the festive season, the inventory for passenger car OEMs is below the average 30 day levels, which has led to the growth. Over the rest of the year, we expect sales trends to be better than what was earlier expected As the economy is gradually normalising: Aditya Makharia, Institutional Research Analyst (Auto), HDFC Securities
Burger King is in the race to take advantage of India's fast growing QSR industry as well as the shifting trend towards organized sector. However, Covid-19 has hit the industry hard as most of the restaurants were non-operational in the first half of 2020. Further uncertain events and state-wise lockdowns remain a big threat to the company. For now the debt to equity ratio is comfortable at 0.8x and the CFO has improved from the negative territory to Rs 112.7 Crs in FY20. The company also plans to use some of the IPO proceeds to repay its debt and for expansion plans. However, stringent rules due to a new Covid wave might disrupt its plans and could be risky for a relatively new player in India given its strong competition. At 2.7x P/Sales, Burger King is relatively cheap compared to 10.4x P/Sales and 6.32x for Jubilant Foodworks and Westlife Development respectively. Keeping the risks in mind, we advise investors to Subscribe for listing gains only for now. Further improvement in bottomline, reduction of debt and same store sales growth should be analysed in the following quarters to take a long-term call: Nirali Shah, Senior Research Analyst, Samco Securities
Quick service chain Burger King India’s IPO opened for subscription today with keen investor interest seen in healthy grey market premiums, and an expectation of listing gains from attractive valuation on offer. Burger King India IPO has a price band of Rs 59-60 apiece. The three-day initial public offer, which will close on Friday, December 2, 2020, consists of a fresh issue of Rs 450 crore and an Offer for Sale (OFS) of 6 crore equity shares by existing shareholders.
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Inflows are likely to continue in the domestic market as there have been prospects of the Tata group to buy around 80% in BigBasket for around $1.3 billion. Hereon, if RBI lets a steady appreciation, the pair is likely move near 73.00 levels. However, there are chances that levels close to 73.80 can be seen before the pair resumes the appreciation journey. As the overall trend is on the appreciation side, it is advisable to sell on every uptick seen and for buying one can hedge via at the money call option: Amit Pabari, managing director, CR Forex Advisors
13150 is the level to watch out for as this is around the level from where we have recently turned. If we get past that we should be headed to 13250-13300 which can prove to be a stiff resistance zone. The Nifty has a good support at 12800: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Cash USD inflows related to MSCI index rebalancing caused the Rupee to strengthen. Nationalized banks who had been supporting USDINR were missing in action for the most part of the session, causing a brisk move lower to 73.44. Foreign custodian banks were seen selling Dollars aggressively. Nationalized banks stepped in towards the end of session to get USDINR to close at 73.66. We may see outflows related to MSCI index rebalancing today. The reaction function of the central bank will be interesting to see. We expect the Rupee to open around 73.50 and trade a 73.35-73.70 range: Abhishek Goenka, Founder and CEO, IFA Global
GST collections in November at Rs 104963 crores indicate that economic recovery is gaining momentum. However, there are concerns whether this momentum will sustain. There are two views: one, this is unlikely to sustain since the recovery in the last three months has been driven by pent-up and festive season demand; two, the revival in demand is largely driven by the tailwind of very low-interest rates. We will have to wait for a couple of months more for clarity on this. Meanwhile, declining dollar ( Dollar index at 91.23) continues to push up stock prices globally: V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Improved visibility on corporate earnings front led by a sharp rebound in key economic indicators, weak dollar index and emerging clarity on political certainty in the USA resulted in sloshing liquidity in the domestic market. The FPIs infused Rs604bn in Nov’20, which is 39% of total FPIs inflows in FY21 YTD standing at Rs1.56trillion (the highest ever). Going forward, the sustainability of earnings rebound and a faster recovery in the economy will be the key factors to sustain the FPI inflows. Additionally, improved earnings outlook of BFSIs with attractive valuation attracted the investors’ attention: Reliance Securities
The trend among the Nifty sectoral indices was mixed. The Nifty metal index was up 1.33 per cent while Nifty IT index shed 0.25 per cent.
On the flip side, Maruti Suzuki, Tata Steel, ONGC, Asian Paints, L&T, Bajaj-Auto, M&M, Titan Company, HUL and Bharti Airtel were the top Sensex gainers.
Out of 30 Sensex stocks, 16 scrips were trading in the negative territory, with Power Grid Corporation of India as a top laggard, followed by Tech Mahindra, Reliance Industries Ltd (RIL), HDFC Bank and Infosys.
BSE Sensex was trading 62 points or 0.14 per cent down at 44,592.84, while the broader Nifty 50 index was testing 13,100 levels.
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Indian share market benchmarks were trading higher in the pre-opening session on Wednesday. BSE Sensex jumped 135 points or 0.30 per cent to trade at 44,790 in the pre-open.
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Domestic bullion could start flat this Wednesday morning. Technically, MCX Gold February did not breach below 47550 levels where it bounced back and resumed above 48500 levels indicating a sideways to marginal upside momentum. Above 48350 will continue its bullish momentum up to 48800-49150 levels. However below it could drift prices 48080-47700 levels. MCX Silver March hit a bounce from 58880 levels where its trading above 63000 levels indicating a positive momentum up to 64200-65300 levels. Support is at 62400-61600 levels: Sriram Iyer, Senior Research Analyst at Reliance securities
The country needed to rethink the kind of crops that should be grown, Union Minister of Jal Shakti Gajendra Singh Shekhawat said on Tuesday. “Paddy and rice production in the country today not only exceeds domestic consumption requirements, but is also above export requirements. Serious thought needs to be given for whom these crops are being produced,” he said.
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With FPIs lapping up Indian equities, portfolio flows in 2020 are nudging $15 billion. This has held up the rupee, which on Tuesday rose to a more than one-month high vs the dollar.
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At its analyst meet, Tech Mahindra management reiterated their confidence on demand acceleration, margin sustainability and improvement. The company expects faster and wider adoption of cloud and 5G—sizable opportunities—in the wake of the pandemic.
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Bank and financial stocks: RBI’s two-day monetary policy committee meeting will begin today and will announce its decision on Friday. Analysts expect RBI to hold interest rates and maintain stance accommodative. Banks and financial stocks will remain in focus today.
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After showing consolidation type movement on Friday, Nifty shifted into a decent upmove on Tuesday and closed the day with handsome gains of around 140 points. After opening on a positive note, Nifty slipped into minor decline soon after the opening. it later shifted into a sustainable upmove from the intraday lows and finally closed near the highs. Minor intraday corrections have created minor buy on dips opportunity for the day: Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Even as the current fiscal has been challenging for consumer companies, quick service chain Burger King India is raising capital via its initial public offer on Wednesday to fund growth and repay some of its debt.
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On Tuesday, foreign institutional investors (FIIs) lapped up shares worth Rs 3,242 crore, while domestic institutional investors (DIIs) offloaded shares worth Rs 1,043.21 crore in the Indian equity market on a net basis, according to the provisional data available on the NSE.
In overnight trade on Wall Street, S&P 500 and Nasdaq Composite indices closed at record highs on Tuesday. The Dow Jones Industrial Average rose 0.63 per cent while the S&P 500 gained 1.13 per cent. The Nasdaq Composite climbed 1.28 per cent.
Asian peers were seen mostly lower in the early trade on Wednesday, with Japan’s Nikkei down 0.12 per cent, while China’s Shanghai Composite slipped nearly half a per cent. Australia’s S&P/ASX 200 shed 0.29 per cent.