Profit-booking across financial counters after last week's rally, and selling in select index heavyweights put lid on gains during Monday's trading session. Despite witnessing a sharp slide during the last trading hour, markets recovered to settle flat.
The benchmark S&P BSE Sensex closed 38.88 points, or 0.93 per cent, lower at 41,642.66 level, dragged by Reliance Industries, ICICI Bank, State Bank of India (SBI), and ITC. On the NSE, the broader Nifty50 index declined 9.05 points, or 0.074 per cent, to settle at 12,262.75 level. The Sensex and Nifty50 hit an intra-day low of 41,474.61 and 12,213.25, respectively.
Shares of Reliance Industries declined as much as 2.77 per cent in the intra-day deals on the BSE on Monday after the government filed petition in the Delhi High Court (HC) seeking to block its $15 billion deal with Saudi Aramco, in view of dues of $3.5 billion in the Panna-Mukta and Tapti (PMT) oil and gas fields. The stock closed 1.88 per cent lower at Rs 1,569.3 apiece. READ MORE
At the index level, Nestle, SBI, RIL, and M&M were the top laggards on the Sensex, while Maruti Suzuki, Hero Motocorp, HDFC, and Titan ended the day as top gainers.
On the sectoral front, Nifty PSU Bank index slumped the most, down 1.29 per cent, while Nifty Realty and FMCG indices, each, closed nearly 0.5 per cent lower. On the upside, Nifty Media index advanced 0.7 per cent.
The broader markets settled almost flat on Monday. The S&P BSE mid-cap index slipped 0.09 per cent to 14,822.60 -mark, while the S&P BSE small-cap index erased 0.07 per cent to 13,382.03 level.
European shares dipped slightly on Monday after nearing a record high in the previous session, as trading thinned ahead of the Christmas and Boxing Day holidays later in the week. The pan-European STOXX 600 index was down 0.1 per cent, with the banking sector leading declines.
Asian markets idled near 18-month highs on Monday. MSCI’s broadest index of Asia-Pacific shares outside Japan hovered near its highest since June 2018, having risen 1.4 per cent last week and more than 5 per cent this month. For the final quarter of the year, it is up nearly 10 per cent so far.
>> The benchmark S&P BSE Sensex closed 38.88 points, or 0.93 per cent, lower at 41,642.66 level, dragged by Reliance Industries, ICICI Bank, State Bank of India (SBI), and ITC.
>> On the NSE, the broader Nifty50 index declined 9.05 points, or 0.074 per cent, to settle at 12,262.75 level.
DIIs gain sway in market movement, rating agencies review firms, and more
DIIs gain sway in market movement Domestic institutional investors (DIIs) are increasingly holding a greater sway in dictating market movement. DII holding in the BSE500 universe stood at a record high of 14.4 per cent at the end of the September quarter, according to a note by Credit Suisse. READ MORE
Index Contributors at this hour
Federal Bank ties up with Magicbricks to recover dues from 30 big accounts
Private sector lender Federal Bank has tied up with online real estate platform Magicbricks for listing and e-auctioning of immovable properties repossessed by it in recovery proceedings. The move is aimed at speedy recovery of the bank's impaired assets, while helping customers get the best rate in the market for their properties, Federal Bank said. READ MORE
BROKERAGE RADAR | Geojit Financial Services on Escorts Ltd
CMP: Rs 623 | Target: Rs 695 | Return: 12%
We expect the volume & margin to remain under pressure. However, in view of early cyclical reversal, we rollover our valuation to FY22 and value EL at 14x FY22E EPS and upgrade our rating from reduce to Accumulate.
Fortis Healthcare down 3% as 0.3% equity changes hands
Global Markets check
European shares dipped slightly on Monday after nearing a record high in the previous session, as trading thinned ahead of the Christmas and Boxing Day holidays later in the week.
The pan-European STOXX 600 index was down 0.1 per cent, with the banking sector leading declines.
Asian markets idled near 18-month highs on Monday.
MSCI’s broadest index of Asia-Pacific shares outside Japan hovered near its highest since June 2018, having risen 1.4 per cent last week and more than 5 per cent this month. For the final quarter of the year, it is up nearly 10 per cent so far.
General insurers want FDI raised to 74%, valuation remains a concern
Last week, the General Insurance Council (GIC), the representative body of general insurance, health insurance and reinsurance companies in India, met to discuss the view of insurance companies in raising the FDI. All the companies agreed on raising FDI limit to at least 74 per cent.
“Prima facie no company had reservations in increasing the FDI limit to 74 per cent,” said sources
Also several companies are in favour of 100 per cent FDI in the sector. READ MORE
YES Bank declines over 3%
Sterlite Technologies falls over 1%
Rate cuts to 'operation twist', RBI governor is pushing policy boundaries
The central bank announced Thursday it will buy longer-dated debt and simultaneously sell shorter maturity notes in a concept similar to Operation Twist used by the U.S. Fed in 2011-12. The move is aimed at bringing down the soaring cost of borrowing, or term premia -- the difference between the benchmark 10-year yields and the central bank’s policy rate. READ MORE
Amid legal battle, ONGC takes over physical control of PMT from RIL & Shell
The government had approached the Delhi High Court seeking to block RIL’s stake sale plans, including the -$15-billion deal with Saudi Aramco, citing non-payment of an international arbitral award to the tune of $4.5 billion on PMT. The Mukesh Ambani-led company had refuted the claims. According to sources, the final phase of the arbitration is scheduled in mid of 2020 and the government of India “has unilaterally made a calculation of an amount they claim to be payable, which is also in dispute.” READ MORE
MARKET CHECK | Top 5 losers on the BSE at this hour
MARKET CHECK | Around 26 stocks hit 52-week high on the NSE
NEWS ALERT | Govt will soon take the vehicle scrappage policy to Cabinet: Dharmendra Pradhan, reports CNBC TV18
Dharmendra Pradhan, Union Minister of Steel
MARKET CHECK | Spencer's Retail slips over 1.50%
MARKET UPDATE:: Sharp fall in benchmark indices
Market check | Sharp slide in Sensex
Adani Green locked in 5% upper circuit; stock hits fresh record high
Shares of Adani Green Energy were locked in 5 per cent upper circuit at Rs 142, also its new high, on the BSE on Monday on the back of heavy volumes. The stock surpassed its previous high of Rs 139 touched on December 2, 2019. The trading volumes on the counter jumped 1.5 times with a combined 1.9 million equity shares changing hands on the NSE and BSE. There were pending buy orders for 216,123 shares on both the exchanges at 12:24 pm. READ MORE
NEWS ALERT | NHPC board to consider raising up to Rs 2,000 cr via debt on Dec 28: BSE Filing
BROKERAGE RADAR | Motilal Oswal Financial Services on Tata Chemicals
In 2016, the company sold off its fertilizer business. In 2019, it carved out a plan to demerge its consumer business with a clear strategy to focus on basic and the specialty chemicals business.
Additionally, TTCH is incurring capex of INR24b at its Mithapur plant for various categories, which is expected to come on stream by FY22 (in a phased manner).
The cash-cow business (soda ash and sodium bicarbonate) of TTCH is expected to remain steady due to potential balanced demand-supply scenario; the cash generated from the same would be partially deployed toward its specialty chemicals segment, which is high margin and return accretive.
Our SOTP-based target price of INR811 implies an upside of 25%. Maintain Buy.
Eight of 10 most-valued firms add Rs 1.13 trillion in m-cap; TCS leads
Reliance Industries Limited (RIL), HDFC Bank, HDFC, ICICI Bank, Kotak Mahindra Bank, Infosys and SBI were the other companies in the top 10 list which saw gains in their market capitalisation (m-cap) for the week ended Friday. Only Hindustan Unilever Limited (HUL) and ITC finished with losses.
The m-cap of Tata Consultancy Services (TCS) surged Rs 56,604.72 crore to stand at Rs 8,33,986.26 crore. READ MORE
Nifty sectoral indices at this hour
Reliance Infra wins arbitration award of Rs 1,250 crore against DVC
A three-member arbitration tribunal unanimously gave the award in favour of Reliance Infrastructure on December 21.
The tribunal directed DVC to pay Rs 896 crore and return the bank guarantees of Rs 354 crore within four weeks or pay additional interest at the rate of 15 per cent per annum for any delay in payment beyond four weeks. READ MORE
Crisil extends gain, hits 52-wk high on acquisition of Greenwich Associates
Shares of Crisil surged 7 per cent and hit a fresh 52-week high of Rs 1,921 on the BSE on Monday, extending its Friday's 1 per cent gain, after the company said it will acquire a Stamford, Connecticut-based company Greenwich Associates LLC. The $40 million acquisition will be done through Crisil's subsidiary, CRISIL Irevna US LLC and will be funded entirely through internal accruals. READ MORE
BROKERAGE RADAR | Reliance Securities on UltraTech Cement
UltraTech Cement (UTCEM) is likely to witness healthy traction ahead in the backdrop of huge capacity, likely pick up in demand scenario and steady pricing environment.
While unlike expectations industry’s realisation had softened sequentially in current quarter, we expect cost deflation and improvement in Century assets profitability will aid UTCEM to report steady performance in current quarter.
Consistent approach to trim cost along with focus on improvement in RoCE by balance-sheet deleveraging augurs well for UTCEM. Going forward, we expect demand to recover in coming months followed by increase in government spending.
We expect UTCEM to report EBITDA/tonne of Rs1,188/Rs1,152 in FY20E/FY21E.
We maintain our fundamental BUY rating on the stock with a Target Price of Rs 5000.
BROKERAGE RADAR | Emkay Global Financial Srrvices on Sun Pharma
CMP: Rs 435
Target Price: Rs 490
Rating: HOLD (up 13%)
The USFDA’s inspection of Sun Pharma’s Halol plant recently (December 3-13, 2019) resulted in eight observations. This is the third inspection at Halol in 2019 (the first was in Feb’19 and then in June’19, both classified NAI/VAI). We accessed the 483 letter and believe that almost all observations - barring Observation No. 1 and Observation No. 2 - are procedural in nature. There is one repeat observation (Observation No. 4). Observation No. 1 relates to OOS products, while Observation No. 2 highlights the lapses in processes to ensure complete data integrity. Both of these will require a rather comprehensive explanation/response, in our view.
Sensex continues to trade flat with a negative bias
Lemon Tree's new acquisitions in India and abroad help post strong growth
The stock of Lemon Tree Hotels was up 7 per cent over the last two trading sessions after the company announced a licensing deal in Goa and expansion into the overseas markets. With a management contract for a 44-room property in Goa, the company has added its fifth property in that state, taking its room count there to 379. READ MORE
Lux Industries falls 7% after over 4% equity changes hands via block deals
Shares of Lux Industries slipped 7 per cent to Rs 1,301 on the BSE on Monday after more than 4 per cent equity of the hosiery company changed hands via block deals.
Around 1.09 million equity shares, representing 4.31 per cent of total equity, of Lux Industries changed hands via two block deals on the BSE, the exchange data shows. The name of the buyers and sellers are not ascertained immediately. READ MORE
Corporate Rejig | Rajan Wadhera of M&M to retire & step down as president, Auto division
>> M&M says, Hemant Sikka will head the farm equipment sector.
>> Veejay Nakra to be appointed CEO of auto division.
NEWS ALERT | Fiscal deficit target of 3% may be pushed by 2 years: Govt official via Agencies
NEWS ALERT | Need more fiscal space in FY21 for Infra push: Govt official via Agencies
>> See higher spending in FT21 for Rs 100 lakh crore Infra push
KEC International gains 3% on winning new orders worth Rs 1,520 crore
Shares of global EPC major KEC International climbed 3 per cent to Rs 309 on the BSE on Monday after the company bagged orders worth Rs 1,520 crore across various business verticals. The company's urban transport business has secured an order of Rs 964 crore for the construction of an elevated viaduct along with eight stations of the Delhi Metro Phase IV project from Delhi Metro Rail Corporation (DMRC), the company said in a BSE filing. READ MORE
NEWS ALERT | RoC moves NCLAT to rectify its order on Tata Sons: CNBC TV18
>> Registrar Of Companies seeks removal of word ‘illegal’ in relation to conversion of public to a pvt co
>> Govt asks NCLAT to rectify its order in Tata Sons case
MARKET CHECK | Top gainers on the BSE at this hour
Buzzing | SpiceJet extends losses
Rate cuts to 'operation twist', RBI governor is pushing policy boundaries
The new tool is part of the broader measures put in place by the RBI to bolster rate transmission after banks failed to fully pass on its 135 basis points of policy easing since February. The central bank has separately prodded banks to peg part of their loan books to external benchmarks such as treasury bills and the repurchase rate, and pumped in billions of dollars to keep liquidity in surplus in the banking system. READ MORE
RBI Governor Shaktikanta Das
BASF India surges 6% as Lone Star to acquire parent firm's chemical biz
Shares of BASF India advanced 6.14 per cent to Rs 1,015.55 on the BSE on Monday after its parent company BASF, Germany signed a Purchase Agreement with an Affiliate of Lone Star, a global private equity player, for acquisition of BASF's Construction Chemicals Business.
In an exchange filing, the company said the purchase price on a cash and debt free basis is EUR 3.17 billion, and is expected to close in the third quarter of 2020, subject to approval of the relevant competition authorities. READ MORE
Metal stocks gain
Momentum picks by ICICI Securities
RIL slips nearly 3% as govt seeks to block $15 bn Saudi Aramco deal
In a counter affidavit, the oil-to-telecom behemoth said it was a ‘falsehood’ that the arbitration tribunal had passed an award requiring the company and its partners to pay $3.5 billion to the government. READ MORE
Small- and mid-cap companies eye buybacks to shore up valuations
Small- and mid-cap companies are looking to shore up valuations of their shares and stem the price erosion by launching buybacks as the broader market is yet to show any signs of recovery.
According to investment bankers, these companies are looking to buy back shares to shore up the share prices by reducing the outstanding free float available in the market. "At these market prices, the companies can save on their buying cost as several mid- and small-cap shares have been beaten down," the banker said. READ MORE
NEWS ALERT | Tata Power awarded LoI to own the licence for the distribution and retail supply of electricity in CESU : BSE filing
NEWS ALERT | 4.2% equity exchanged on BSE of Lux Ind: CNBC TV18
>> Equity exchanged with 10.5 lakh shares worth Rs 137 cr trading in a block at Rs 1,301/Sh
KEC International gains 2%
>> KEC International, the flagship company of the RPG Group, on Saturday said it has bagged orders worth Rs 1,520 crore across various business verticals.
NEWS ALERT | L&T Tech Services awarded multi-million dollar EPCM project in Europe
GAIL trades lower on report DoT has sought Rs 1.72 lakh crore in past statutory dues
>> Amout sough following the Supreme Court's ruling on revenues that need to be taken into consideration for payment of government dues.
Bharti Infratel erases 0.8%
>> The government is unlikely to clear the proposed merger of Bharti Infratel with Indus Towers by the December 24 deadline, said a report by The Economic Times.
Future Retail gains 3% as promoters release pledge on shares
InterGlobe Aviation trades mildly lower
Muthoot Finance hits fresh high
Reliance Industries slips 1.5%
Titan trades 2% higher on inclusion in Sensex index
Sectoral trends at NSE during Opening trade
Sensex heatmap at open; Reliance Ind top loser
Market at Open
Market at Open
Top gainers and losers on S&P BSE Sensex during Pre-open
Market at Pre-open
Market at Pre-open
Rupee opens flat at 71.13/$ vs Friday's close of 71.12 against the US dollar
Slowdown in SME sector can hurt mid-sized private banks, be selective
Mid-sized private banks, such as RBL Bank, Federal Bank, City Union Bank (CUB), DCB Bank, and Karur Vysya Bank (KVB), have two common threads. First, they cater for an identified pool of customers, either by region or product category; second, their core strength lies in their ability to serve small and medium enterprises (SMEs). READ MORE
Broader market telling a different story from Sensex, Nifty: Shankar Sharma
At a time when the S&P BSE Sensex and the Nifty50 have hit new highs, SHANKAR SHARMA, vice chairman & joint managing director at First Global, cautions that these two indices, by any stretch, are not representative of the entire market. Over the past few years, they have become a six-stock measure, he tells Puneet Wadhwa. READ FULL INTERVIEW HERE
Shankar Sharma, Vice chairman & joint managing director, First Global
DoT seeks Rs 1.72 trillion in past statutory dues from GAIL after SC ruling
The Department of Telecommunications has sought Rs 1.72 trillion in past statutory dues from state-owned gas utility GAIL India Ltd following the Supreme Court's ruling on revenues that need to be taken into consideration for payment of government dues.
Sources with direct knowledge of the development said DoT sent a letter to GAIL last month seeking Rs 1,72,655 crore in dues on IP-1 and IP-2 licences as well as Internet Service Provider (ISP) licence. READ MORE
Stocks to watch: Titan, Tata Motors, Nestle, YES Bank, RIL, IT firms, GAIL
Here's a list of top stocks that may trade actively in today's trading session -
Sensex changes: Tata Motors, Tata Motors DVR, YES Bank and Vedanta will be dropped from the BSE’s benchmark Sensex from today. Instead, UltraTech Cement, Titan Co and Nestle India will be added to the index. Besides, UPL and Dabur India will be added to the S&P BSE Sensex 50, replacing Indiabulls Housing Finance and YES Bank.
Banks to remain in focus as the Reserve Bank of India (RBI) is slated to launch its US Fed-style "Operation Twist" on Monday where it will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs 10,000 crore. READ MORE
Nifty Outlook and top trading ideas by CapitalVia Global Research Limited
Buy UPL Ltd.: (Above Rs 583)
Target: Rs 620
Stop loss: Rs 560
The stock is witnessing a bounce-back from major moving averages in daily chart and has closed above all major EMAs. Moreover, the stock is witnessing resistance breakout from the level of 583 and breaching this level might result in good upside momentum. Considering the technical evidence discussed here, we recommend buying the stock above Rs 583 for the target of Rs 620, keeping a stop loss at Rs 560 on a closing basis. READ MORE
Top two trading ideas by Prabhudas Lilladher: Buy Marico, M&M Finance
The market closed at an all-time high on Friday with indicators showing potential for higher targets, so bias continues to be positive. This also being a truncated week, market may consolidate or move in narrow range. The support for the week is seen at 40,980/12,040 while resistance is seen at 42,370/12,500 for Sensex and Nifty, respectively. Bank Nifty would have a range of 31,690-33,080. Among banking stocks HDFC Bank looks positive along with ICICI and State Bank of India (SBI). Market at this level will witness stock specific movement with trend of all periodicities continuing to be positive. READ MORE
FII/FPI & DII trading activity on NSE, BSE and MSEI
>> Oil prices were mostly steady on Monday after three weeks of gains amid optimism the United States and China were close to signing a trade deal to end a tariff war, with President Donald Trump saying an agreement would be signed “very shortly, Reuters reported.
>> At 8:24 am, Brent Crude Futures were at $65.09 per barrel mark
At 8:11 AM, the SGX Nifty was trading 7.5 points higher at 12,300, indicating a flat to positive start for Nifty.