Market news and NIFTY analysis

After a decline of about 1.5% in the market yesterday, the markets rose nearly 1% keeping the traders baffled. Due to monthly derivative expiry day, volatility was high. At the start of the day, most sectoral indices were in the red but all of them turned green by the close of day. The Nifty Metal index (+3.8%) gained the most due to JSW Steel (+7.0%), Tata Steel (+5.2%) and Hindalco (+3.0%). Auto majors Eicher Motors (-1.5%) and Maruti (-0.7%) were among the top losers in market. November sales volume release will come next week. 

Sugar stock rallied:-

The shares of sugar companies moved up recently after the Food Ministry approved loans to the tune of ₹12,500 crore for ethanol production. The industry players will meet the Food Ministry today. We believe that the discussion could revolve around sugar export policy (which is a pending matter) and the minimum support price (MSP) for sugar. Investor entered with high volume ahead of the meeting as top sugar stocks rose in the range of 3-10%.

GDP no to announce:-

India’s Q2 GDP numbers will come tomorrow. The market expects a contraction of around 8.2%. After the second consecutive quarter of contraction (after a 23.9% slump in Q1) whether it’s as a recession phase or a sharp recovery from historic lows, the market will decide. Meanwhile, European indices are trading in the red and US markets will be closed for the Thanksgiving holiday. 

SuperTECH and Highcourt tussle:-

The Delhi High Court on Thursday issued notices to the Reserve Bank of India, NCR builder Supertech and some banks. It was regarding the case where the builder failed to pay equated monthly instalments under a subvention payment plan involving three housing projects in Gurgaon.

The three projects by Supertech is “substantially delayed and are nowhere near completion,” the writ petition by over 200 homebuyers said. The builder has defaulted on the payment of EMI under the subvention scheme. Now banks approached them (buyers) directly for payment.

The writ petition, filed by three associations representing the homebuyers, claimed that they are “completely helpless and aggrieved by the acts of respondents”. They duly failed to fulfil and abide by their duties and obligations towards the people of this country. Their basic fundamental rights guaranteed under Article 19 and 21 of the Indian Constitution is under question.

Laurus Lab acquisition:-

Pharma company Laurus Labs is set to acquire 72% stake in Richcore Lifesciences for about ₹250 crores and mark its entry into the biotechnology segment. Laurus will fund the acquisition through internal accruals. For FY20, Richcore had revenue of ₹41 crores. Share of Laurus Labs gained 2.2% today. The stock is a massive outperformer in the market since March 2020 lows. It gained over 300% this financial year owing to strong financial performance. 

PVC pipe maker Astral Poly announced its entry into plastic storage tanks business. The stock rose by 2.6% today and closed at its lifetime high. Shares of other PVC pipe makers such as Finolex Industries, Jain Irrigation and Prince Pipes rose in the range of 1-5%. Rising crude oil prices augur well for PVC pipe makers in the medium term. The increase in crude oil prices triggers a rise in raw material prices (PVC). It will eventually lead to a price hike in PVC pipe prices. 

For Nifty stay tuned to our articles.