MARKET WRAP: Sensex snaps 3-day gaining streak, down 71 pts; metals drag

Photo: Kamlesh Pednekar
Indian equity indices ended a lackluster trade near day's low on Monday, as investors booked profit post stellar gains seen on Friday. The benchmark S&P BSE Sensex settled 71 points, or 0.17 per cent, lower at 40,938.72 level. The losses seen at metal and FMCG counters were trimmed by gains in the information technology (IT) stocks. 

 
Among the 30-share index pack, Tata Consultancy Services (TCS), Tech Mahindra, HCL Technologies, and HDFC were the top gainers, up between 1 and 1.7 per cent. On the downside, ITC, Tata Steel, Hindustan Unilever, and Vedanta dragged up to 1.5 per cent lower. 

On the NSE, the broader Nifty50 index held the 12,000-mark, at 12,053.95 level, down 33 points or 0.27 per cent. 

Among the key sectoral indices on the National Stock Exchange, Nifty Metal index closed 1.3 per cent lower, while Nifty IT index settled 1.02 per cent higher.

In the broader markets, the mid-caps took deeper cut. The S&P BSE mid-cap index declined 0.46 per cent, while the S&P BSE small-cap index was down 0.20 per cent.

BUZZING STOCKS

Nifty Bank index hit a record high of 32,186.95 in the opening deals on the National Stock Exchange (NSE) on expectations that ArcelorMittal could complete payment worth Rs 42,000-crore in the Essar Steel case to the lenders. For the world’s largest steel maker, the timeline of one month for the full payment ends on Monday. At close, the Nifty Bank index was at 31,997.20 level, down 0.08 per cent. READ MORE

Shares of Sun Pharma cracked as much as 2.84 per cent to Rs 426.50 apiece on the BSE on Monday after the company informed that the US FDA has issued a Form 483, with eight observations for its Halol (Gujarat) facility. The inspection was conducted from December 03-13, 2019, the company said in its regulatory filing. The stock eventually settled 0.9 per cent lower at Rs 434.70 level. READ MORE

GLOBAL CUES

Asian shares hit their highest in nearly eight months on Monday after the United States and China agreed on a preliminary trade deal, with Australian shares leading the way on expectations of more easing of monetary policy there.

Positive sentiment helped push the MSCI’s broadest index of Asia-Pacific shares outside Japan to its highest level since April 18. It was last up 0.25 per cent. Australia’s S&P/ASX 200 led the way as it jumped 1.63 per cent, while shares in Taiwan added 0.22 per cent.

European shares hit an all-time high on Monday with the pan-European STOXX 600 index advancing 0.89 per cent to 415.68 points, surpassing the previous life-high made in April 2015.

(With inputs from Reuters)

3:43 PM IST

3:42 PM IST

3:41 PM IST --  The benchmark S&P BSE Sensex settled 71 points, or 0.17 per cent, lower at 40,938.72 level. The losses seen at metal and FMCG counters were trimmed by gains in the information technology (IT) stocks.  -- On the NSE, the broader Nifty50 index held the 12,000-mark, at 12,053.95 level, down 33 points or 0.27 per cent. 

3:41 PM IST

3:24 PM IST

3:12 PM IST Shares of Mastek moved higher by 14 per cent to Rs 431 on the BSE in the afternoon deals on Monday, ralling 20 per cent in the past two trading days.   The company, on Friday, said it's wholly owned subsidiary Mastek (UK) has sold partial stake in Majesco to drive growth strategy. The software services provider plans to divest the remaining stake. READ MORE

2:57 PM IST Stockyards in logistics and transport hubs in various parts of the country are overflowing with repossessed commercial vehicles, as the rising incidence of defaults is forcing financiers to step up the seizure of these vehicles.   The data collated by the Delhi-based Indian Foundation of Transport Research and Training (IFTRT) from financiers and transporters shows that close to 50,000 commercial vehicles have been seized and are parked in the stockyards. READ MORE

2:43 PM IST

2:42 PM IST Wholesale prices based inflation rose to 0.58 per cent in November, as against 0.16 per cent in October due to increase in prices of food articles. The annual inflation, based on monthly wholesale price index (WPI), was at 4.47 per cent during the same month a year ago (November 2018). The rate of price rise for food articles rose to 11 per cent during the month as against 9.80 a month earlier, while for non-food articles it eased 1.93 per cent from 2.35 per cent in October. READ MORE

2:31 PM IST

2:16 PM IST -- Unsecured lenders to get Rs 40 cr -- Secured lenders to get Rs 4,053.19 cr -- Total admitted claims from financial creditors against Ruchi Soya stand at Rs 9,384 cr

LIVE UPDATES

Sectoral trends at NSE at close


Top gainers and losers on S&P BSE Sensex at close


Closing Bell

--  The benchmark S&P BSE Sensex settled 71 points, or 0.17 per cent, lower at 40,938.72 level. The losses seen at metal and FMCG counters were trimmed by gains in the information technology (IT) stocks. 

-- On the NSE, the broader Nifty50 index held the 12,000-mark, at 12,053.95 level, down 33 points or 0.27 per cent. 

STOCK ALERT | ITC falls 2% after huge block deals


Realty stocks gain in the fag end of the session


Mastek extends rally; gains 20% in 2 days on partial stake sale in Majesco

Shares of Mastek moved higher by 14 per cent to Rs 431 on the BSE in the afternoon deals on Monday, ralling 20 per cent in the past two trading days.
 
The company, on Friday, said it's wholly owned subsidiary Mastek (UK) has sold partial stake in Majesco to drive growth strategy. The software services provider plans to divest the remaining stake. READ MORE

Lenders step up repossession of commercial vehicles on payment defaults

Stockyards in logistics and transport hubs in various parts of the country are overflowing with repossessed commercial vehicles, as the rising incidence of defaults is forcing financiers to step up the seizure of these vehicles.
 
The data collated by the Delhi-based Indian Foundation of Transport Research and Training (IFTRT) from financiers and transporters shows that close to 50,000 commercial vehicles have been seized and are parked in the stockyards. READ MORE

MARKET CHECK | Top 5 gainers on the BSE at this hour



WPI inflation rises to 0.58% in Nov on hike in prices of vegetables, pulses

Wholesale prices based inflation rose to 0.58 per cent in November, as against 0.16 per cent in October due to increase in prices of food articles. The annual inflation, based on monthly wholesale price index (WPI), was at 4.47 per cent during the same month a year ago (November 2018). The rate of price rise for food articles rose to 11 per cent during the month as against 9.80 a month earlier, while for non-food articles it eased 1.93 per cent from 2.35 per cent in October. READ MORE

Rupee check


NEWS ALERT | Lenders to Ruchi Soya likely to receive their dues today: sources to CNBC TV18

-- Unsecured lenders to get Rs 40 cr

-- Secured lenders to get Rs 4,053.19 cr

-- Total admitted claims from financial creditors against Ruchi Soya stand at Rs 9,384 cr

Global Markets check

Asian shares hit their highest in nearly eight months on Monday after the United States and China agreed on a preliminary trade deal, with Australian shares leading the way on expectations of more easing of monetary policy there.

European shares were set to build on the previous week’s gains. In early European trades on Monday, pan-region Euro Stoxx 50 futures were up 0.62 per cent, German DAX futures were 0.5 per cent higher and FTSE futures rose 0.6 per cent.
 
US stock futures also pointed to stronger gains to start the week, with the S&P 500 e-minis up 0.27 per cent.

Positive sentiment helped push the MSCI’s broadest index of Asia-Pacific shares outside Japan to its highest level since April 18. It was last up 0.25 per cent.
 
Australia’s S&P/ASX 200 led the way as it jumped 1.63 per cent, while shares in Taiwan added 0.22 per cent.

(inputs from Reuters)

Kansai Nerolac Paints gains 3%


EXPERT COMMENT | Sunil Sinha, Principal Economist, India Ratings and Research on Nov WPI nos

Wholesale inflation for the month of November 2019 came in at 0.58%, broadly similar to 0.16% in October 2019. Although food article in the wholesale price index have been firming up over the past few months and reached the double digit mark in the month of November 2019, sustained weakness in both fuel and manufactured component has helped the overall wholesale inflation to remain benign.

India Ratings and Research believes, RBI will continue to do the balancing act even in its February 2019 policy review. With fiscal deficit likely to exceed budgeted 3.3% of GDP in FY20 and non-transmission of policy rate cut so far in the real economy means that RBI would act on policy rate based on evolving economic situation and incoming high frequency data despite the fact that growth slowdown perhaps warrants further cut in the policy rate.  

Market check


Sector watch | Nifty Metal index slips 0.7%; Nalco, SAIL top drags


Top gainers on BSE at this hour


Buzzing | Ramco Systems sees sharp gain post signing agreement with China Aircraft Services

-- Through this collaboration, Ramco will provide its integrated Aviation Suite with modules for Maintenance & Engineering, MRO Contracts, Supply Chain, and Finance to help CASL manage their end-to-end line and base maintenance, ground handling and cabin services.
 

Buzzing | Bandhan Bank trading near day's low


EXPERT COMMENT | Rahul Gupta, HoR - Currency, Emkay Global Financial Services on Nov WPI nos

India’s Nov WPI has surged to 3-month high of 0.58 per cent from 0.16 per cent in Oct mainly on account of higher food prices. However, it remained below the market consensus of 0.74 per cent, this indicates that few sectors including manufacturing are still under stress. Overall, inflation is picking up in the economy, amid slow growth, this can be a sign of worry for the RBI at Feb policy.

BROKERAGE RADAR | Kotak Securities on Print Media

We expect print ad revenues to decline in the next 3-5 years due to a continued shift of ad spends to digital from print. R-Jio and a weak macro (especially rural economy) have accelerated this shift and amplified the impact of digital on print advertising. The medium-term outlook for other revenue streams (print circulation and radio) isn’t encouraging either. We cut estimates and fair value of Jagran Prakashan and DB Corp and maintain our cautious view.

NEWS ALERT | Astron Paper & Board Mill enters into strategic partnership agreement with China-based co: BSE filing

-- The Company has entered into a "Strategic Partnership Agreement" with SHANDONG ZHONGHUI SUPPLY CHAIN MANAGEMENT CO LTD, (ABC Paper), China.

-- The agreement will be executed for the period of three year i.e up to 31st December, 2022.

-- The ABC PAPER will transfer technical knowledge and experience for upgrade of plant

Navin Fluorine gains for third straight day; stock hits fresh all-time high

Shares of Navin Fluorine International were trading higher for the third straight day, up 2 per cent at Rs 960 in intra-day trade on Monday after the company announced a capex plan of Rs 450 crore at Dahej through a wholly-owned subsidiary, which is to be incorporated. The stock has rallied 8 per cent in the past three trading days, as compared to 1.5 per cent rise in the benchmark S&P BSE Sensex. In the past two months, it rallied 32 per cent against 6 per cent gain in the benchmark index. READ MORE

With YES Bank approval on cards, Coffee Day-Blackstone deal almost sealed

In a major relief to Coffee Day Enterprises (CDEL), YES Bank is learnt to have softened its stance and decided to render the ‘no objection’ to the Bengaluru-based firm’s decision to sell its Global Village Technology Park to Blackstone.
 
The private sector lender has conveyed this decision verbally while a formal letter of approval is expected to reach Coffee Day Group in the next 2-3 days, highly placed sources privy to this development said.  READ MORE

BROKERAGE RADAR | Motilal Oswal Financial Services on Voltas

CMP: Rs 679 | TP: Rs 785 (+16%) | Buy
 
According to Voltas’ (VOLT) management, the company is benefiting from the fallout in the US-China trade war. Due to high inventory build-up in China, VOLT was able to avail high discounts, which more than offset the import duty increase. Thus, based on the present situation, it is confident of achieving an 11% EBIT margin in the Unitary Cooling Product (UCP) segment without any price hikes. 

Grasim Industries down 2%


BROKERAGE RADAR | Emkay Global Financial Services on IndusInd Bank

Maintain Buy with a revised TP of Rs 1,725 and turn slight OW in EAP due to its reasonable valuations for potentially higher return ratios (2% RoA/18-19% RoE), strong retail orientation and strong capital position. However, the near-term stock performance will track the outcome of asset quality/new MD and CEO.

BROKERAGE RADAR | Anand Rathi Shares on L&T Infotech

L&T Infotech expects to regain its growth momentum in H2 FY20 as client issues move behind it and the deal pipeline improves ~42% y/y (incl. large deal proposals). Management provided no details on visa investigations (sub judice) but believes that there are no integrity issues on the company’s part. We largely retain our FY20e/21e and Buy recommendation, but on the better growth outlook raise our target to Rs 1,900 (Rs 1,860 earlier).

BROKERAGE RADAR | ICICI Securities on Metals

We are more constructive of steel sector in CY20. On the cycle turn (and data have turned more prospective), as loss probability reduces and RoE expectations start to scale towards 8-9%, the bottom cycle P/B metric of 0.5x will give way to 1x P/B allowing significant upside in most names. This is highlighted by target prices for our top-2 BUYs in the sector (Tata Steel, JSPL). While we are positive on NMDC, the extent of disruption as feared by many in India may not come true. We are still not completely convinced of aluminium plays and cost curve and smelter profitability is raking-up doubts.

Nifty Bank hits record high. Here are five stocks that can gain up to 10%

ICICI Bank Ltd (ICICIBANK): The counter has risen with “Higher high, Higher low” formation and hit new life time high on Friday of Rs 542.80 levels, as per the daily chart. The overall trend indicates bullishness till the formation is not broken on a closing basis. At the current juncture, Rs 520 remains as an immediate support and this rally may see Rs 580 and Rs 600 as an immediate level. Although, the Relative Strength Index (RSI) trades in an overbought condition, some selling has been seen on the charts. READ MORE

Titan Company dips 1%


Market check


Markets to lay down long-term base for returns, says Vaibhav Sanghavi

As the markets head into 2020 on a cautious note in the backdrop on slipping growth rates, VAIBHAV SANGHAVI, co-chief executive officer, Avendus Capital Public Markets Alternate Strategies, tells Puneet Wadhwa that the focus would increase on FY21 earnings, which he thinks can grow by about 15 per cent.  READ FULL INTERVIEW HERE
Vaibhav Sanghavi

NEWS ALERT | November WPI inflation at 0.58% vs 0.16% (MoM): CNBC TV18

-- Food inflation at 9.02% vs 7.65% (MoM)

BUZZING STOCK:: Apollo Hospitals up 2%


Gold finance stocks doing well, but await correction before investing

Despite the stress non-banking finance companies (NBFCs) are going through, one segment i.e gold financing has remained an outlier. The stocks of two gold finance majors -- Manappuram Finance and Muthoot Finance -- have surged 20-39 per cent in the last three months, outperforming the 10 per cent rise in leading indices such as the BSE Sensex. What is enthusing the Street towards this set of NBFCs is their ability to sustain the strong return ratios amidst a challenging environment. READ MORE

Crisil shares hit 52-week high, zoom 39% in three months

Shares of Crisil continued their northward movement and hit a fresh 52-week high of Rs 1,745, up 2 per cent on the BSE on Monday in an otherwise subdued market. The stock of the rating agency company was trading at its highest level since October 2018. In the past three months, the stock has outperformed the market by surging 39 per cent as the company reported a good set of numbers led by rating business for the quarter ended September 2019 (Q3CY19). READ MORE

NEWS ALERT | SEBI disposes off insider trading case in Manappuram Finance: CNBC TV18


See Brent oil prices near $60 per barrel by 2020-end: Paul Hickin of Platts

US – China trade-related issues, developments in West Asia and outage at Saudi Aramco’s facility were some of the events that kept oil prices volatile all through 2019.
 
London – based Paul Hickin, associate director at S&P Global Platts tells Puneet Wadhwa that S&P Global Platts sees India’s oil demand growing in 2020 as economic growth is expected to pick up, helped by the Reserve Bank of India’s (RBI’s) interest rate cuts. READ FULL INTERVIEW HERE
PAUL HICKIN, associate director at S&P Global Platts

Buzzing | PNB Housing Fin gains over 3%


FMCG stocks under pressure

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%)
SANWARIA CONSUM. 1.77 1.90 1.76 -0.06 -3.28
KWALITY 2.50 2.50 2.28 0.11 4.60
HIND. UNILEVER 1980.10 2010.55 1978.00 -25.20 -1.26
MARICO 333.00 337.05 332.25 -1.15 -0.34
VIKAS WSP 9.38 9.55 9.30 -0.06 -0.64
Click here for the full list

Retail, telecom help RIL beat Indian Oil to be number one player by revenue

Reliance Industries (RIL) has emerged as the number one company in terms of revenue in the Fortune India 500 list for 2019, pipping Indian Oil Corporation (IOC). RIL revenues crossed Rs 5.81 trillion in FY19 against IOC’s Rs 5.36 trillion.
 
Since it was first published in 2010, IOC has been topping the list.
 
RIL’s race to the top was powered by consumer-facing businesses like organised retail and telecom. READ MORE

NEWS ALERT | RBI will do whatever is necessary to address slowdown: Shaktikanta Das, RBI governor

-- Slowdown in India not entirely due to global factors

-- Hope understanding between the US and China will sustain

-- RBI was ahead of times in cutting rates

(As reported by CNBC TV18)

ITC slides over 1%


Market check | Sensex slips into the red


BGR Energy surges 39% in two days on Rs 4,443 crore contract win

Shares of BGR Energy surged 16 per cent to Rs 41.15 in early morning deals on Monday, thus rallying 39 per cent in the last two trading days after the company won a contract worth of Rs 4,443 crore from Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO). In a regulatory filing on Friday, BGR Energy said the company was awarded a contract by TANGEDCO for the execution of 1x660 MW Supercritical Ennore Thermal Power Station Expansion Project under EPC basis. The total value of the project is Rs 4,442. 75 crore, including all taxes and duties to complete the contract, it said. READ MORE

Nifty Bank hits fresh high as ArcelorMittal to close Essar Steel deal today

Nifty Bank index held its gains above the crucial 32,000-mark, and hit a record high of 32,186.95 in the opening deals on the National Stock Exchange (NSE) on expectations that ArcelorMittal could complete payment worth Rs 42,000-crore in the Essar Steel case to the lenders. For the world’s largest steel maker, the timeline of one month for the full payment ends on Monday. READ MORE

Sun Pharma declines nearly 3% as Halol facility gets 8 US FDA observations

Shares of Sun Pharma cracked as much as 2.84 per cent to Rs 426.50 apiece on the BSE on Monday after the company informed that the US FDA has issued a Form 483, with eight observations for its Halol (Gujarat) facility. The inspection was conducted from December 03-13, 2019, the company said in its regulatory filing. At 09:30 am, the stock was trading over 1.50 per cent lower at Rs 431.70. READ MORE

Momentum picks by ICICI Securities


BUZZING STOCK:: Glenmark Pharma up 1%


MARKET UPDATE:: Sensex off opening highs


Indiabulls Ventures up 3%


Tech stocks gain in early trade


Ashiana Housing zooms 10%

-- Ashiana Housing has converted 244 'Expression of Interests' into booking out of the total 250 units available in Phase 1 of the project 'Ashiana Aditya'. 


JB Chemicals and Pharma rises nearly 3%


Punjab National Bank declines

-- Public sector lender Punjab National Bank (PNB) under-reported its non-performing assets by Rs 2,617 crore for the fiscal year 2018-19, as per RBI's risk-assessment report.

Sun Pharma dips in a strong market

-- The company's Halol facility has received 8 USFDA observations. The inspection took place from December 3 to December 13.


HCL Tech gains during early trade


Market check | Nifty Bank hits record high of 32,186.95


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 | Sensex hits record high of 41,185.03


India's total market-cap rises to Rs 155 trn on growth in FPI, MF assets

India’s total market capitalisation has risen 7.1 per cent, or Rs 10.3 trillion, to Rs 155 trillion, so far, this calendar year. Foreign portfolio investors (FPIs) and mutual funds (MFs) have seen their assets under custody (AUC) grow at a much faster rate. FPIs, the biggest investor class outside promoters, have seen their AUC go up 11.5 per cent, or Rs 3.1 trillion, to Rs 30.4 trillion, while MFs have seen their assets increase by Rs 1.8 trillion, or 18.4 per cent, to almost Rs 12 trillion. While most part of the asset growth is because of capital appreciation, a considerable portion has come on account of incremental inflows.  READ MORE


Rupee Opening Alert

Rupee opens higher at 70.75/$ vs Friday's close of 70.81 against the US dollar

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


Market at Pre-open


Market at Pre-open


Sensex near record, but over a third of it is still available for 'cheap'

The Sensex on Friday closed at 41,010, only 120 points shy from a fresh all-time high. While the benchmark indices are back near record levels, several of its components are still available “cheap”, compared to historical valuations.
 
Business Standard analysed 12-month forward price-to-earnings (P/E) and price-to-book (P/B) multiples of the 30 Sensex components and compared them to the average 10-year P/E and P/B for the respective stocks. READ MORE

Stocks to watch: Banks, Sun Pharma, HUL, Adani Transmission, JB Chemicals

Here's a look at the top stocks that may remain in focus today -
 
Banks to remain in focus on news that the global steel giant ArcelorMittal has initiated payment for acquisition of debt-ridden Essar Steel for Rs 42,000 crore. "ArcelorMittal has arranged the entire amount of Rs 42,000 crore which is likely to be transferred to State Bank of India, the lead banker to take control of Essar Steel under the Insolvency and Bankruptcy Code," news agency PTI reported citing cources. 

HUL: GlaxoSmithKline (GSK) Plc may exit from Hindustan Unilever Limited (HUL), early in the New Year, according to a report by The Economic Times. GSK Plc, as per the report, said it would sell the stake once the merger was completed in early 2020. It didn’t say when it would do so and that the sale would occur in “tranches”. READ HERE

Commodity picks: December 16, 2019

Mustard seed
 
Mustard seed at the benchmark Jaipur market is trading at Rs 4,642 per quintal. For the week ahead, prices are expected to head towards Rs 4,675 per quintal. Positive crush margins and firm cues from edible oil would keep demand active from processors, thereby supporting higher prices. READ MORE

Nifty view & top picks by Prabhudas Lilladher: Buy Mahindra & Mahindra

BUY MAHINDRA & MAHINDRA | CMP: Rs 516.20 | TARGET: 590 | STOP LOSS: Rs 490
 
The stock has witnessed a decent correction from the peak of 621 levels and has bottomed out near 500 levels where there is a strong support. The stock is indicating a bounceback with positive bias. The RSI also has shown a trend reversal from the highly oversold zone and has signaled a buy for further upside levels to attain in the coming days. We suggest to buy this stock for an upside target of Rs 590 keeping a stop loss of Rs 490. READ MORE

Nifty outlook and top trading ideas by CapitalVia Global Research Limited

Market traded higher on Friday; Nifty likely to touch all-time high soon
 
The Nifty traded with positive sentiments on Friday on strong global cues, as the US-China trade talk progressed in a positive direction. The index closed at 12,086.70, adding 114.90 points. PSU banks, metal and reality stocks traded with positive sentiments through the day and gained the most among the indices. Banknifty closed at 32,014.30, adding 348.80 points from the previous day’s closing. READ MORE

Bulk deals on BSE as on Friday

Bulk deals on NSE as on Friday

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


Rupee check

Source: Bloomberg



Oil check

-- Brent Crude Futures were at $64.99 per barrel, down 0.35%.

SGX Nifty

At 8:23 AM, the Singaporean Exchange for Nifty Futures was at 12,131 levels, down 18 points, indicating a positive start for the Indian markets.

Asian Markets check


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