Sensex Snaps 7-Day Losing Streak, Nifty Loses Grip On 8,000
The Sensex extended gains, led by automakers, after European shares advanced.
Closing Bell
Indian stocks rebounded from the biggest losing streak in one-and-half year as some investors deemed the benchmark gauges’ decline to their one-month low to be excessive.
The S&P BSE Sensex snapped a seven-day losing streak after it closed 0.2 percent higher at 26,040. The NSE Nifty 50 index closed little changed at 7,985, after briefly recapturing the 8,000-mark, a level closely watched by technical analysts, during intraday trade.
The market breadth, however, was not encouraging with more losers than gainers. Around 850 stocks declined, 750 advanced and 287 remained unchanged.
“Domestic Investor Stuck With Nowhere To Go”
Ajay Srivastava of Dimensions Consulting believes the “fear factor” being introduced in the economy may not be good for consumption stories. “If consumption is a casualty, then obviously the growth numbers will go down or maybe even go negative,” he told BloombergQuint’s Agam Vakil
He said international investors certainly do not find comfort in what is happening domestically in the economy. The only reason why there isn’t a large scale selloff is because domestic investor is still hanging in the mutual fund and SIPs not knowing where else to go. They are taking the losses on the chin and waiting for things to turn around, he said.
Europe Shares Gain
European stocks opened higher after Deutsche Bank AG and Credit Suisse Group AG agreed to settle U.S. mortgage probes and Italy decided to go ahead with a bailout for its lenders. Asian shares fell as Chinese equities extended losses amid rising borrowing costs.
Demonetisation: Taking Stock With SBI
The Verdict Is Out
Sugar Stocks Rally
Shares of sugar companies gained anywhere between 1.5 percent and 17 percent.
Top Gainers
- Parrys Sugar Industries (+16.5%)
- Oudh Sugar Mills (+15.1%)
- Dharani Sugars (+15%)
- Dwarikesh Sugar Industries (+10%)
- Mawana Sugar (+9.2%)
- Sakthi Sugars (+8.1%)
- Shree Renuka (+4.8%)
- Triveni Engineering (+4.6%)
BQSpotted
Reliance Defence Snaps Three Day Losing Streak
- Gained as much as 6.77 percent
- Market cap: Rs 4,070 crore
- Volumes are up over 8 times today
- Part of the Anil Ambani-led ADAG Group, the company has India’s largest engineering infrastructure.
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Opening Bell
Indian shares fell for an eighth straight session, their longest losing since August 2013, amid thin trading as uncertainty over economic growth and corporate profits persisted.
The S&P BSE Sensex declined 0.2 percent to 25,915 while the NSE Nifty dropped 0.3 percent to 7,955. The market breadth, however, was skewed in favour of the buyers with 770 stocks advancing, 634 declining and 479 remaining unchanged.
Movers & Shakers: Suzlon, Wipro, Welspun Enterprises And More
Money Market Heads Up
The RBI monetary policy committee's hawkish view on inflation didn’t really go down well with bond bulls.
- Yield on the benchmark note jumped six basis points to 6.52 percent in the last session, headed for its fourth week of surge.
- In the day, government plans to sell Rs 14,000 crore of bonds, however, the underwriting for this auction came in at a higher side.
- The market is therefore expected to remain under pressure with an upward bias on yields.
In the currency markets, the rupee is headed for its second week of decline. On the last trading day before the Christmas holidays, stocks in the region are trading lower weighing on the currencies. Traders expect thin volumes and a lackluster rangebound trade.
Stocks To Watch
- Aurionpro Solutions: Goodpack selected SCMProfit suite
- Igarashi Motors: To consider absorbing units on Dec. 26
- JSW Energy: To consider raising funds via bonds Dec. 27
- Mahindra Financial: Submits data ahead of 50b rupees MTN program
- Suzlon Energy: In pact with AMP for project, Rudra sale
- Welspun Enterprises: Approved Rs 270 crore for buy back up to 43.5 million, or 25 percent shares, at Rs 62 each
- Wipro: SEC says company to pay $5 million in civil penalty
- Jindal Stainless: To consider issue of shares to its lenders
- Uttam Value: To consider conversion of loans into shares
Offerings
- Reliance Capital’s unit Reliance Home Finance NCDs public issue gets 3 times demand on 1st day sale, offer to close today versus Jan. 6 scheduled
- NSE to release HFT review in IPO filing: Chairman Chawla
For a complete list of stocks to watch, click HERE
Talking Points
- India identifies 6.75 million potential non-filers with tax liability
- Tata Motors shareholders vote to oust independent director Nusli Wadia
- April-Oct. coal imports up 2.6 percent YoY to 119.2 million tonne
- Google offers Wi-Fi in 100th railway station in India
- Court refuses Vodafone plea on TRAI penalty recommendation
- SCA shuts down India hygiene operations
- Global funds sell Rs 614 crore of local stocks; domestic funds buy Rs 320 crore yesterday: Provisional data
Good Morning!
The Nifty futures on the Singapore Stock Exchange, an early indicator of Nifty’s performance in India, fell 0.1 percent to 7,981.
Asian stocks declined this morning, following their U.S. counterparts dropped along with Treasuries amid a flurry of data that bolstered optimism in the American economy. The U.S. dollar halted its rally, crude prices retreated while gold gained.
The MSCI Asia-Pacific Index, excluding Japan, dropped for an eighth session, its longest series of losses since May, while markets in Tokyo were closed for a holiday.
On Thursday, U.S. stocks retreated in thin trading, with benchmark indexes hovering below all-time highs.
Orders for U.S. business equipment advanced more than forecast last month, while final reading of third-quarter gross domestic product topped estimates. Mortgage rates rose, with the 30-year reaching the highest level since April 2014, after the Federal Reserve increase its benchmark lending rate.
The number of Americans filing applications for unemployment benefits rose more than expected to a six-month high last week, potentially reflecting seasonal swings in a still-healthy labour market.