MARKET WRAP: Sensex slips 334 pts, Nifty holds 11,900; YES Bank tumbles 11%

Topics MARKET WRAP | Markets

Photo: Kamlesh Pednekar
Investors turned to profit-booking on Friday as weak growth concerns dampened sentiment at D-Street. Financials slipped the most on the index with heavyweights such as State Bank of India, HDFC, and ICICI Bank declining up to 5 per cent. 

On Thursday, the Reserve Bank of India (RBI) sharply lowered its gross domestic product (GDP) growth forecast for financial year 2019-20 (FY20) further by 110bps to 5 per cent from 6.1 per cent on substantially weaker growth in Q2FY20, and incremental data on Q3 which suggests that the slowdown is still persisting. Besides, the central bank retained status quo on rates, against expectation for a 25bps cut, on inflationary concerns. The accommodative stance was maintained on rising output gap.

The benchmark S&P BSE Sensex closed 334 points, or 0.82 per cent, lower at 40,445.15 level. YES Bank, SBI, Tata Motors, HDFC, and IndusInd Bank were the top laggards at the 30-share index. Loses were, however, trimmed by gains in Reliance Industries, and HDFC Bank. In the intra-day trade, the Sensex hit a low of 40,337.53. 

On the NSE, the Nifty50 slipped below the 11,900-mark in the intra-day trade to hit a low of 11,888.85. At close, the index was at 11,921.5 level, down 97 points, or 0.81 per cent. All the sectoral indices ended the day in the red. Nifty PSU Bank index was the top loser, down over 4 per cent. 

In the broader market, mid-caps tumbled the most. The S&P BSE mid-cap index ended the day 1.27 per cent lower at 14,668.31, while the S&P BSE small-cap index closed at 0.85 per cent lower at 13,341.39.

GLOBAL CUES

Asian shares ended higher on Friday after Beijing said it will waive import tariffs for some soybeans and pork shipments from the United States. 

Japan's Nikkei index gained 0.23 per cent, South Korea's Kospi up 1.02 per cent, and China's Shanghai Composite added 0.43 per cent.

In Europe,  the pan-European STOXX 600 index rose 0.3 per cent by around 2:00 pm, with banks, technology firms and retail companies leading the gains.

(With inputs from Reuters)


3:38 PM IST

3:37 PM IST

3:35 PM IST -- The benchmark S&P BSE Sensex closed 334 points, or 0.82 per cent, lower at 40,445.15 level. YES Bank, SBI, Tata Motors, HDFC, and IndusInd Bank were the top laggards at the 30-share index. -- On the NSE, the Nifty50 slipped below the 11,900-mark in the intra-day trade to hit a low of 11,888.85. At close, the index was at 11,921.5 level, down 97 points, or 0.81 per cent. 

3:16 PM IST

3:03 PM IST Actively managed equity schemes have continued to underperform passive funds for the second straight year. In an interaction with Jash Kriplani, Aashish Somaiyaa, MD and CEO of Motilal Oswal AMC, which recently launched a clutch of passive funds, shares why he sees huge scope for such products. READ MORE  

2:51 PM IST

2:45 PM IST

2:44 PM IST Shares of Mahindra & Mahindra (M&M) slipped 2 per cent to Rs 512 on the BSE on Friday and was trading close to its 52-week low level. The car & utility vehicles maker's stock is less than 2 per cent away from its 52-week low price of Rs 503, touched on August 14, in intra-day trade. In past one month, M&M has underperformed the market by falling 12 per cent as the company’s tractor sales delivered disappointing performance. READ MORE

2:32 PM IST Shares of Vodafone Idea slumped 9 per cent to Rs 6.66 on the BSE on Friday after its chairman Kumar Mangalam Birla said the company will shut down if the government does not provide relief on the liability it faces in past statutory dues following a Supreme Court order. The Bombay Stock Exchange (BSE) however said, the exchange has sought clarification from Vodafone Idea about Birla's comment. The company is yet to reply. READ MORE

2:23 PM IST Alert: AAI is Airports Authority of India

2:18 PM IST Traders have shied away from the long-end of the curve since July on concern the government will expand record bond sales. Sentiment toward the short-end, which closely tracks policy rates, turned negative Thursday after the central bank surprised by holding off on easing. READ MORE   

LIVE UPDATES

Sectoral trends at NSE at close


Sensex heatmap at close


Closing Bell

-- The benchmark S&P BSE Sensex closed 334 points, or 0.82 per cent, lower at 40,445.15 level. YES Bank, SBI, Tata Motors, HDFC, and IndusInd Bank were the top laggards at the 30-share index.

-- On the NSE, the Nifty50 slipped below the 11,900-mark in the intra-day trade to hit a low of 11,888.85. At close, the index was at 11,921.5 level, down 97 points, or 0.81 per cent. 

Nifty Media index declines over 3%


Passive funds can work if they simplify investing: Motilal Oswal AMC CEO

Actively managed equity schemes have continued to underperform passive funds for the second straight year. In an interaction with Jash Kriplani, Aashish Somaiyaa, MD and CEO of Motilal Oswal AMC, which recently launched a clutch of passive funds, shares why he sees huge scope for such products. READ MORE  

Contributions to S&P BSE Sensex's fall today


Nifty sectoral indices at this hour


Mahindra & Mahindra nears 52-week low; stock slips 12% in one month

Shares of Mahindra & Mahindra (M&M) slipped 2 per cent to Rs 512 on the BSE on Friday and was trading close to its 52-week low level. The car & utility vehicles maker's stock is less than 2 per cent away from its 52-week low price of Rs 503, touched on August 14, in intra-day trade. In past one month, M&M has underperformed the market by falling 12 per cent as the company’s tractor sales delivered disappointing performance. READ MORE

Voda Idea falls 9% after chairman says will shut in absence of govt relief

Shares of Vodafone Idea slumped 9 per cent to Rs 6.66 on the BSE on Friday after its chairman Kumar Mangalam Birla said the company will shut down if the government does not provide relief on the liability it faces in past statutory dues following a Supreme Court order. The Bombay Stock Exchange (BSE) however said, the exchange has sought clarification from Vodafone Idea about Birla's comment. The company is yet to reply. READ MORE

NEWS ALERT | Vascon Engg bags order worth Rs 132.7 cr from AAI: BSE filing

Alert: AAI is Airports Authority of India

Bond markets may face prolonged rout as RBI pauses its rate-cut spree

Traders have shied away from the long-end of the curve since July on concern the government will expand record bond sales. Sentiment toward the short-end, which closely tracks policy rates, turned negative Thursday after the central bank surprised by holding off on easing. READ MORE   

MARKET CHECK | Top 5 losers on the BSE at present


Market check | Nifty50 slips below 11,950


Market check | Sensex off over 500 pts from day's high


Fixed deposit holders of debt-laden DHFL asked to submit claims by Dec 17

Fixed deposit holders of debt-troubled Dewan Housing Finance Corporation (DHFL) have been asked to submit their FD claims to the insolvency professional by December 17.
 
The holders need to submit their FD certificate or receipt number, identity proof, and a cancelled cheque to substantiate proof of claim.
 
As of July 6, the company had public deposits worth Rs 6,188 crore. The Bombay High Court had on November 13 directed DHFL to make payments to banks and NBFCs.

Market check


NEWS ALERT | JB Chemicals & Pharma to buy-back 29.54 lakh shares: BSE filing


Eris Lifesciences zooms 14%


NEWS ALERT | Maruti to recall 63,493 petrol hybrid variants of Ciaz, Ertiga and XL-6 Models: Exchange filing

-- To recall units to rectify faults that may be potential safety defacts


PSU banks trade weak; SBI, Bank of Baroda down over 3%

Shares of public sector banks were trading lower for the second straight day, with Nifty PSU Bank index down 3 per cent on Friday, as investors booked profit on fears of weak economic growth. The index was ended 2 per cent lower on Thursday.
 
In comparison, the benchmark Nifty 50 index was down 0.43 per cent at 11,967 at 11:45 am, falling less than 1 per cent in the past two trading days. READ MORE

Allcargo Logistics climbs 4% after it buys nearly 45% stake in Gati

Shares of Allcargo Logistics climbed up to 4 per cent to Rs 98 on the BSE in the intra-day trade on Friday, a day after the company acquired 44.64 per cent stake in Gati. At 12:29 am, the stock was trading over 2 per cent higher at Rs 96.15 apiece on the BSE. Gati, on the other hand, slipped around 3 per cent to Rs 64. In comparison, the S&P BSE Sensex was trading 0.23 per cent lower at 40,685 levels. READ MORE

Vodafone Idea will shut shop if govt doesn't provide relief: KM Birla

Vodafone Idea will have to be closed down if the government doesn't provide relief that the company has sought, its chairman Kumar Mangalam Birla said on Friday.
 
"We will have to shut shop," Birla said on a query about the course of action for the company going ahead in the absence of government relief. READ MORE
 

PSU banks trade weak; SBI, Bank of Baroda down over 3%

Shares of public sector banks were trading lower for the second straight day, with Nifty PSU Bank index down 3 per cent on Friday, as investors booked profit on fears of weak economic growth. The index was ended 2 per cent lower on Thursday. In comparison, the benchmark Nifty 50 index was down 0.43 per cent at 11,967 at 11:45 am, falling less than 1 per cent in the past two trading days. READ MORE

NEWS ALERT | Cadila Health's API manufacturing unit in Gujarat receives EIR: BSE filing

-- API manufacturing facility located at Dabhasa, Gujarat receives an Establishment Inspection Report

-- The US FDA had conducted an inspection at the facility from Oct 7-11.

-- The EIR report stated that classification of the facility is No Action Indicated

Mid, small-caps underperform benchmarks, Omaxe hits 20% lower circuit

Mid- and small-cap indices were trading with deep losses in the morning deals on Friday. The S&P BSE MidCap slipped nearly a per cent or 122 points to 14,733 levels while the S&P BSE SmallCap index slid 80 points or 0.59 per cent to trade at 13,375 levels. In comparison, the benchmark S&P BSE Sensex was trading around 175 points or 0.43 per cent lower at 40,605 levels. READ MORE

Eris Lifesciences surges 7%, hits 5-month high in a weak market

Shares of Eris Lifesciences hit a five-month high of Rs 473, up 7 per cent on the BSE on Friday, in an otherwise range-bound market. The stock of the pharmaceutical company was trading at its highest level since July 2019. In comparison, the S&P BSE Sensex was down 0.20 per cent at 40,699 points at 11:17 am. READ MORE

RBL Bank slumps 4%


Sensex slips into red


Nifty sectoral indices at this hour


SBI slips over 3%


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
VODAFONE IDEA 7.13 -0.18 -2.46 12930299
YES BANK 58.80 -3.30 -5.31 6621639
DISH TV 12.95 -1.77 -12.02 4877566
SUZLON ENERGY 2.26 -0.03 -1.31 1777413
JP ASSOCIATES 2.44 -0.09 -3.56 1692823
» More on Most Active Volume

Asian Paints up 1%


Omaxe locked in 20% lower circuit

Shares of Omaxe were locked in lower circuit of 20 per cent at Rs 144 -- an over three-year low level -- on the BSE in morning deals on the back of heavy volumes. The real estate company's stock was trading at its lowest level since April 2016. At 10:19 am, there were pending sell orders for 2.1 million shares, representing 1.1 per cent of total equity of Omaxe, on the NSE and BSE. As on September 2019, nearly half or 51 per cent of the total promoters holding was pledged.

(SI Reporter)

Decoded: FIIs' unshakable faith in Modi govt even as economy sputters

India’s economy may be faltering, but its $2.1 trillion stock market has been powering to new highs as foreign investors pile into country’s shares, betting the worst may have already passed.
 
The economic growth is at the lowest since before Prime Minister Narendra Modi came to power in 2014. The economy expanded 4.5 per cent in July-September, slowing for a sixth straight quarter as deteriorating local consumption, troubled banks and a weak global outlook all took their toll. But the equity market? Now, that’s a different story. READ MORE

Market check | Indices pare gains


NEWS ALERT | Rate cut by US Fed made Donald Trump aggressive w.r.t trade war with China: Chris Wood to CNBC TV18

-- US Fed has resumed easing; shorting US market is risky

-- Quality of US earnings is highly suspect

-- Base case is, Trump will sign trade deal with China before Dec 16

YES Bank dips 5% after Moody's downgrades ratings, assigns negative outlook

Shares of YES Bank dipped 5.5 per cent to Rs 58.70 on the BSE on Friday after Moody’s downgraded the bank's long-term foreign currency issuer rating to 'B2' from 'Ba3', as potentially stressed assets and low loss-absorbing buffers may add pressure to its funding and liquidity. The global rating agency assigned negative outlook on the bank’s rating. READ MORE

Indian economy a victim of Modi govt's shock therapy, says Chris Wood

The Indian economy is a victim of Narendra Modi government’s shock therapy since he assumed power in 2014 and conservative investors can assume that it may take four quarters more for it to rebound, and be pleasantly surprised if the recovery comes earlier, wrote Christopher Wood, global head of equity strategy at Jefferies in GREED & fear, his weekly note to investors.
 
That said, his base case remains that the reforms, be it demonetisation, the introduction of goods and services tax (GST), the Real Estate Regulation Act (RERA) or the bankruptcy law, will prove long-term positive. READ MORE
Christopher Wood, global head of equity strategy at Jefferies

Contribution to Sensex's gain


Market off opening highs


Pharma stocks gain in early trade


Berger Paints gains 2%


Tata Steel up 1%


Buzzing | Dish TV slips over 3%


PSU Banks index trade in the red; SBI top loser


Tata Motors mildly higher


Allcargo logistics trades 3% higher

-- Allcargo Logistics, part of the Avvashya Group, has forayed into express logistics segment by acquiring a 44.64 per cent stake in Gati.


Welspun India trades in the green

-- Welspun group promoters have acquired a majority stake in One Industrial Space, which is into developement of warehousing space, in their personal capacities.


YES Bank slips in early trade


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


Top gainers and losers on S&P BSE Sensex during Pre-open


Market at Pre-open


Market at Pre-open


Rupee opening

Rupee opens slightly higher at 71.26/$ vs Thursday's close of 71.28 against the US dollar

RIL has more legs to run, even after hitting Rs 10 trillion in market cap

Even though the Reliance Industries stock has gained over 30 per cent since September this year, the rally according to brokerages is not over yet. The latest trigger is the announcement of a price hike by its telecom subsidiary, Reliance Jio.
 
The telecom arm raised tariffs by up to 35 per cent, which is expected to boost its revenues and average revenue per user (ARPU) by 22 per cent in FY21.READ MORE
RIL Chairman Mukesh Ambani.

RBI's policy surprise: Pause on rate cuts may hit real estate, auto sectors

The Reserve Bank of India’s (RBI’s) move to pause rate cuts will hit the beleaguered real estate and auto sectors hard. These sectors were expecting another rate cut by the central bank to help revive sagging consumer demand.
 
CEOs said benefits from the previous rate cuts are yet to play out completely and the real estate industry is still reeling from the liquidity crisis as consumers are not coming forward to buy new houses or cars. READ MORE

Stocks to watch: Welspun India, YES Bank, Allcargo Logistics, Gati

Here's a look at the top stocks that may hog the limelight today -
 
Welspun India: Welspun group promoters have acquired a majority stake in One Industrial Space, which is into developement of warehousing space, in their personal capacities.
 
Allcargo Logistics, Gati: Allcargo Logistics, part of the Avvashya Group, has forayed into express logistics segment by acquiring a 44.64 per cent stake in Gati. READ MORE

Trading strategies for gold, silver, oil, zinc by Tradebulls Securities

Rupee
 
The Indian rupee is the worst performing Asia ex-Japan (AXJ) currency for the second consecutive month in November. Rupee weakness came amid a 1.7% m-o-m increase in the foreign reserves to a fresh record high of $448.3 billion as on November 15. This partly explains the net sell-off in Indian government bonds in November versus a net inflow in October. 71.40-71.30 is proving to be strong support for Indian rupee and inspite of weak US Dollar, Indian rupee fails to trade sub 71.50 levels. We anticipate rupee to trade in range of 71.50-72.20 and today’s pause in repo rates will be negative for Indian rupee. READ MORE

Derivatives strategy by HDFC Securities: Buy PVR December Future

Buy PVR DECEMBER Future at Rs 1,809
 
Stop Loss: Rs 1,780

Rationale:
 
-- We have seen accumulation of Long build up in the PVR Futures’ in the December Future till now where we have seen 13 per cent rise in Open Interest with price rising by 1.5 per cent.

-- After giving breakout on the monthly charts for the month ending September, the stock price is consolidating in the narrow range of last two months with rise in the Open Interest. READ MORE

Nifty outlook and top trading ideas by Jay Anand Thakkar of Anand Rathi

NIFTY: BUY | TGT: 12,150 | SL: 11,950
 
Nifty closed in the negative territory after yesterday’s bounce back; however, it has still managed to close above 12,000 levels which is a positive sign in the short-to-medium term. The only worry is that the Index has formed a bearish head and shoulders structure on the hourly charts which indicates that once 11,950 levels get broken it will lead to a sharp sell-off till 11850-11800 levels. So, till 11,950 is held one can maintain the long positions however if it breaks one has to reverse the longs to shorts. READ MORE

Bulk deals on BSE as on Thursday

Bulk deals on NSE as on Thursday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg

Oil check

At 8:15 AM, Brent Crude Futures were at $63.24 per barrel mark.

SGX Nifty

At 8:12 AM, the SGX Nifty was trading 25 points lower at 12,069 levels.

Asian Markets check


US Market check


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