Profit-booking continued at the bourses as weak domestic and global economic scenario kept investors on the sidelines. Tata Consultancy Services (TCS), ITC, Reliance Industries, and Axis Bank contributed the most towards today's fall.
The benchmark S&P BSE Sensex ended at 40,239.88 level, down 247.55 points or 0.61 per cent. YES Bank, down 10 per cent, was the top laggard among the Sensex pack , while Bajaj Finance, up over 1 per cent, was the top performer. In the intra-day trade, the Sensex declined 380 points from day's high to hit a low of 40,208.70.
On the NSE, the Nifty50 closed below the 11,900-mark at 11,856.80 level, down 81 points, or 0.68 per cent.
On the sectoral front, all the indices settled the day in the red. Nifty informational technology, public sector bank, metal and FMCG indices settled with over 1 per cent cut each.
The broader markets underperformed the benchmarks in Tuesday's session. The S&P BSE mid-cap index closed 1.1 per cent lower at 14,519.78 level, while the S&P BSE small-cap index ended at 13,145.27 level, down 1 per cent.
Shares of information technology (IT) services were trading in the red in the early trade on Tuesday as the rupee hit around one month-high against the US dollar. The domestic currency opened at 70.96 against Monday's close of 71.04. The Nifty IT index settled 1.4 per cent lower on the NSE. READ MORE
Shares of YES Bank hit a six-week low of Rs 53.40 on the BSE ahead of the board meeting slated for later today to finalize and approve the details of the preferential allotment. The stock-eventually settled 10 per cent lower at Rs 50.55 per share. READ MORE
Global stock markets fell for a second day on Tuesday after Chinese local media reported that a trade deal was unlikely to be signed before December 15. Despite this, the report said, Washington and Beijing do not expect the tariffs planned for December 15 to come into force, adding to a growing chorus on both sides who expect de-escalation this week.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.17 per cent lower, while China’s benchmark Shanghai Composite index was off 0.08 per cent. In Europe, shares fell for again, with the pan-European STOXX 600 index down 0.4 per cent at 1:45 PM. Germany’s DAX fell 0.64 per cent to its lowest in a week.
Market Closing Comment :: Rohit Singre, Senior Technical Analyst at LKP Securities.
Index showed selling since morning and closed the day at 11,856.8 level. It has formed a bearish candle on daily chart. The index has now reached near good demand zone of 11,840-11,800 zone. If Nifty50 manages to hold above said levels, then we may see good recovery towards immediate hurdle of 11,950-12,000 zone. Overall, the index has formed a narrow range of 11,800-12,100 zone and traders can use buy on dip strategy near lower band of 11,800 zone.
Sectoral trends at NSE at close
Sensex heatmap at close
-- The benchmark S&P BSE Sensex ended at 40,239.88 level, down 247.55 points or 0.61 per cent. YES Bank, down 10 per cent, was the top laggard among the Sensex pack , while Bajaj Finance, up over 1 per cent, was the top performer.
-- On the NSE, the Nifty50 closed below the 11,900-mark at 11,856.80 level, down 80 points, or 0.68 per cent.
NEWS ALERT | 1.1% equity exchanged
Sector watch | Nifty PSU banks decline; Allahabad Bank, Central bank of India top loser
Buzzing | Ashoka Buildcon hits 52 week low
NEWS ALERT | Healthcare services stocks under pressure
-- Thyrocare Technologies, Dr. Lal PathLabs and Metropolis Healthcare slip 7% each in intra-day trade
NEWS ALERT | Have tried to articulate a vision for India to become a $5 trillion economy, says CEA: CNBC TV18
-- There are boundary conditions across countries: CEA
Organic growth, expanding distribution reach add fizz to Varun Beverages
One name which is catching investor attention in the consumption space is Varun Beverage — PespiCo’s India franchise. The stock has surged 45 per cent rise in the last one year, mainly led by acquisition of PepsiCo’s south and west territories in India.
However, with a strong improvement expected in return ratios, the stock is likely to see further upsides. READ MORE
ITC, Mahindra & Mahindra trade close to their 52-week lows
Shares of FMCG major ITC and automobile company Mahindra & Mahindra (M&M), from the S&P BSE Sensex, were trading close to their respective 52-week lows on the BSE on Tuesday. These stocks were down in the range of 1 per cent to 2 per cent. In comparison, the S&P BSE Sensex was down 0.26 per cent at 40,381 points at 01:05 pm.
Among individual stocks, ITC was down 2 per cent to Rs 237, quoting close to its 52-week low of Rs 234, touched on September 18, 2019. M&M was trading at Rs 509, down 1 per cent, and close to its 52-week low of Rs 503, hit on August 14. The stock has fallen 12 per cent in past month on weaker tractor sales. READ MORE
NEWS ALERT | Centre changes the composition of GoM on IGST settlement: CNBC TV18
-- FM Nirmala Sitharaman opts out of the GoM
-- GoM wil now be chaired by Bihar Finance Minister Sushil Modi
Global markets check
Asian equity markets eased slightly on Tuesday, tracking Wall Street declines as investors fretted over a December 15 deadline for the next round of US tariffs on Chinese imports to take effect.
European equity futures pointed to similarly small moves. Pan-region Euro Stoxx 50 futures were down 0.03 per cent and German DAX futures were 0.14 per cent lower in early trade, while FTSE futures added 0.1 per cent.
With investors reluctant to make big bets, MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.17 per cent lower, with China’s benchmark Shanghai Composite index off 0.08 per cent.
Adding pressure in China was new data showing falling producer prices in November while consumer prices spiked, complicating efforts to boost demand as economic growth slows.
Australian shares were off 0.34 per cent, while Japan’s Nikkei was down 0.08 per cent.
RBL Bank shares trade lower for fourth straight day post QIP issue
Shares of RBL Bank were trading lower for the fourth straight day, down 3 per cent at Rs 326 in the intra-day trade on Tuesday on profit-booking after the private sector lender raised more than Rs 2,000 crore through qualified institutional placement (QIP). The stock has fallen below its QIP issue price of Rs 351 per share on the BSE. READ MORE
Investors' body calls for better performance disclosures by PMS providers
An investor association has asked for better information to be provided on the performance of portfolio management services (PMS) providers, shortly after the regulator tweaked regulations governing the segment.
The PMS industry largely caters to rich investors who can allocate large amounts to such schemes, and are typically seen to carry more risk than mutual funds. A discretionary portfolio manager manages the assets directly. Non-discretionary portfolio management involves acting on the directions of the client. READ MORE
SBI gains 1%
Sector watch | S&P BSE Energy index trades 0.7 per cent lower
NEWS ALERT | SBI discloses NPA divergence details
Contribution to Sensex's fall today
BROKERAGE RADAR | ICICI Securities on Kansai Nerolac Paints
We expect revenue and PAT CAGRs of 13.5% and 21.5%, respectively, over FY19-22E. Return ratios are also expected to improve during the same period. While revenue performance is likely to be weaker, we note tailwinds such as reduction in tax rates, and commencement of Punjab factory to reduce freight cost, which would drive earnings growth in FY20E-FY21E. Maintain our ADD rating on the stock with target price of Rs 565 at 39x Sep’21E EPS.
PSBs turn profitable in Apr-Sep FY20, post aggregate profit of Rs 3221 cr
Public sector banks (PSBs) returned to profitability in 2019-20, posting an aggregate profit of Rs 3,221 crore in the first half ending September, Minister of State for Finance Anurag Singh Thakur said in Parliament on Monday.
PSBs had posted huge losses in 2017-18 and 2018-19 financial years due to heavy provisioning for non-performing assets and other contingencies, according to the minister. READ MORE
Oberoi Realty dips 5%
NEWS ALERT | IDBI Bank invokes pledge on 4.2% equity of Coffee Day on November 19: CNBC TV18
Gold's impressive performance in 2019 may spill into the new decade
Gold’s impressive advance in 2019 -- aided by trade war frictions, easier monetary policy across the world’s leading economies and sustained central-bank buying -- may be set to spill into the new decade. As 2020 looms, BlackRock Inc., the world’s largest money manager, remains constructive on bullion as a hedge, while Goldman Sachs Group Inc. and UBS Group AG see prices climbing to $1,600 an ounce -- a level last seen in 2013. READ MORE
Crompton Consumer on a firm footing, led by growth in electrical appliances
Crompton Greaves Consumer Electricals, which had remained under pressure due to stake sale by private equity investors, has rebounded well and is up more than 12 per cent since August lows. The company’s prospects remain firm which is evident from the fact that majority of shares offloaded by private equity investors were picked up by mutual funds, point out analysts. READ MORE
Nifty slips below 11,900 level
YES Bank hits 6-week low ahead of board meet; stock falls 24% in eight days
Shares of YES Bank declined 5 per cent to hit a six-week low of Rs 53.40 on the BSE ahead of the board meeting slated for later today to finalize and approve the details of the preferential allotment. The stock of private sector lender was trading at its lowest level since October 29, 2019. In the past eight trading days, it has fallen 24 per cent, as compared to a 2 per cent decline in the S&P BSE Sensex. READ MORE
NEWS ALERT | Nov Auto Sales Data : SIAM
-- A dip of 10.83% has been registered in the sales of Passenger Cars in November'19 as compared to November'18.
-- Motorcycle sales at 8.9 lakh units
-- Two-wheeler sales at 14.1 lakh units, down 14.27%
-- Total vehicle exports at 14.1 lakh units, up 17.6% YoY
-- Commercial Vehicle sales down 14.98% YoY
-- Total exports of Commercial Vehicles down 29.03% YoY
MARKET UPDATE:: Sensex extends fall, down over 100 pts now
BUZZING STOCK:: HUL up 1%
PC Jeweller hits all-time low as CRISIL downgrade ratings to default grade
Shares of PC Jeweller continued to trade under pressure and slipped 5 per cent to hit a fresh all-time low level of Rs 23.50 on the BSE on Tuesday after rating agency CRISIL downgraded its long-term and short-term ratings to the company's bank loan facilities to CRISIL D. The instruments with this rating are in default or are expected to be in default soon, as per the rating agency. READ MORE
BROKERAGE RADAR | Motilal Oswal Financial Services on L&T
We cut our core E&C EPS estimate by 1.5%/3.4% for FY20/FY21, incorporating lower order inflow/revenue growth assumption. Consol. EPS has been cut by 1.3%/2.6% for FY20/FY21. We have also lowered our target P/E multiple on core business to 20x from 22x on account of macro uncertainties. Accounting for the current market price of listed subsidiaries, our TP stands at Rs 1,680 (prior: Rs 1,830). Adjusted for the valuation of subsidiaries, the stock trades at FY20/FY21E P/E multiple of 19x/15.6x v/s its long-term trading average P/E multiple of 23x. Maintain Buy.
New India Assurance, GIC rally up to 8% as govt may raise FDI limit to 74%
Shares of life insurance companies including HDFC Life Insurance, SBI Life Insurance, and ICICI Prudential Life Insurance were trading higher on Tuesday on report that the government may propose to raise foreign direct investment (FDI) limit in the sector to 74 per cent from 49 per cent currently in the Union Budget for 2020-21. READ MORE
IT stocks slip; TCS, Wipro fall over 1% as rupee hits one-month high
Shares of information technology (IT) services were trading in the red in the early trade on Tuesday as the rupee hit around one month-high against the US dollar. The domestic currency opened at 70.96 against Monday's close of 71.04. At 09:51 am, the Nifty IT index was trading over a per cent lower at 14,977 levels with all the 10 constituents in the negative territory. READ MORE
Nifty Pharma index gains
MARKET CHECK: Sensex continues to trade flat
The New India Assurance Company zooms over 6%
Muthoot Finance gains 1%
Bharti Airtel ticks up 1%
Hero MotoCorp off opening highs
ONGC up 1%
BUZZING STOCK:: Indiabulls Ventures zooms 5%
S&P BSE mid-cap index trades 0.1 per cent lower
Sun Pharma gains 1%
DHFL declines 5%
The South Indian Bank slips 0.5%
-- India Ratings has downgraded lowe tier II bonds and tier II bonds from IND A+/Stable to IND A+/Negative.
Vodafone Idea trades higher
YES Bank slips in trade
-- Bank is likely to reject an offer that made up more than half of its planned $2 billion capital raising, and is talking to institutional investors about making up the shortfall, according to a person familiar with the matter.
HDFC Life Insurance Co up 2%
Nifty IT index slips on stronger rupee
Sectoral trends at NSE during Opening trade
Top gainers and losers on S&P BSE Sensex during Opening trade
Market at Open
Market at Open
Momentum picks by ICICI Securities
Top gainers and losers on S&P BSE Sensex during Pre-open
Market at Pre-open
Market at Pre-open
Rupee opens higher at 70.96/$ vs Monday's close of 71.04 against the US dollar
Slowdown not systemic, need to correct asset prices: Deutsche Bank's Joshi
The current slowdown is cyclical and global investors are looking at long-term prospects for India, which may explain why the stock indices are at a high, says Dixit Joshi, group treasurer of Deutsche Bank AG. In an interview with Anup Roy, Joshi says the bank is putting more equity into its Indian operation despite a global restructuring as its business in the country is doing good. READ FULL INTERVIEW HERE
Stocks to watch: YES Bank, Mphasis, Hero MotoCorp, Bank of Baroda, HDFC
Here's a look at the top stocks that may remain in focus today -
YES Bank: is likely to reject an offer that made up more than half of its planned $2 billion capital raising, and is talking to institutional investors about making up the shortfall, according to a person familiar with the matter.
Hero MotoCorp on Monday said it will increase the price of its motorcycles and scooters from January, 1, 2020. The company added that the prices of its products will be raised up to Rs 2,000. READ MORE
Investors need to brace for higher volatility, lower returns in 2020: UBS
Stepping into 2020, and a new decade, investors will have to brace for higher volatility, lower returns, technological disruptions, and much more. Here are the brokerage's five key predictions for next year and the next decade:
5 predictions for 2020
Gold to outperform: Gold’s good run to continue. It should outperform more cyclical commodities, says UBS
Dollar to weaken: US dollar to weaken and higher-yielding currencies will do well. READ MORE
Equity flows see sharpest dip in 3.5 years, slip 78% in November
Equity mutual fund (MF) schemes recorded worst inflows in three and a half years at Rs 1,311 crore for November. It was 78 per cent low compared to the preceding month. Despite the drop in equity inflows, the assets under management (AUM) for the industry soared to a record high of Rs 27 trillion, thanks to over Rs 50,000 crore of net inflows in debt schemes. In November, equity schemes saw Rs 16,268 crore of redemption — 47 per cent higher than the previous month. READ MORE
The stock has provided a breakout from the triangular pattern formed on the daily charts and it seems to have completed a wave 4 correction with the same. Now, till 32,00 levels aren’t broken the wave 5 up can’t be ruled out, hence in anticipation of wave 5 up one can buy SRF. READ MORE
NEWS ALERT | Private Equity players express initial interest to buy stake in Bharti Airtel: sources to CNBC TV18