Sensex, Nifty Resume Declines After One-Day Breather

Indian equity benchmarks resumed fall after a one-day breather, led by the declines in ITC Ltd. and Tata Consultancy Ltd.

The S&P BSE Sensex fell 0.61 percent or 248 points to end at 40,239.88 and the NSE Nifty 50 fell 0.68 percent to close at 11,856.80. The broader markets represented by the NSE Nifty 500 Index fell 0.79 percent.

The market breadth was tilted in favour of sellers. About 1,279 stocks declined and 512 shares advanced on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Media Index’s 1.94 percent fall.

New India Assurance

• Stock rose nearly 8 percent intraday.
• “The government may raise the overseas investment limit in insurance to 74 percent in the February budget, up from 49 percent now, possibly paving the way for foreign control of companies,” Economic Times reported quoting people familiar with the matter.

Indiabulls Housing Finance

• Stock rose as much as 7.2 percent to Rs 277.60.
• Fresh longs seen with high open interest of 3 percent.

JB Chemicals & Pharma

• Stock rose as much as 8.3 percent to hit an all-time high at Rs 434.90.
• The stock advanced 23 percent since November.

Time Technoplast

• Stock rose as much as 5.1 percent to Rs 49.85.
• The company plans to mull business restructuring.

Thermax

• Stock rose as much as 3.2 percent to Rs 1,012.80.
• Trading volume was more than 20 times its 20-day average.

Jyothy Labs

• Stock fell as much as 3.9 percent to Rs 152.05.
• Trading volume was almost 17 times its 20-day average.

MAS Financial Services

• Stock rose as much as 7.7 percent to Rs 884.80.
• Trading volume was more than 11 times its 20-day average.

Sheela Foam

• Stock fell as much as 2.9 percent to Rs 1,287.
• Trading volume was five times its 20-day average.

Shares of PC Jeweller extended declines for the fourth consecutive trading session. The stock fell as much as 10.3 percent to hit an all-time low at Rs 22.25.

CRISIL had downgraded rating on bank facilities worth Rs 3937 crore to D from BB+ and A4+ for long term and short term. The downgrade factors in the instances of devolvement of Letter of Credits and overutilization in working capital limits for more than 30 days. The same is reflective of the fact that the liquidity profile of the group has deteriorated in past few months on account of cash flow mismatches.

The stock has declined 64 percent in the past 12 months compared to a 15 percent rally in the Sensex. The Relative Strength Index was below 30, indicating that the stock may be overbought, according to Bloomberg data.

Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Media Index’s 1.2 percent fall. On the flipside, the NSE Nifty Financial Services Index was the only sectoral gainer, up 0.02 percent.

SBI says:

• Divergence in provisioning at Rs 12,036 crore as on March 21, 2019.
• Adjusted loss for 2018-19 for provisioning divergence at Rs 6,968 crore.
• Divergence in net, gross NPA as on March 31, 2019 at Rs 11,932 crore.

Source: Exchange filing

Shares of Tata Consultancy Services extended declines for the second consecutive trading session. The stock fell as much as 2.3 percent to Rs 2,012.45.

Of the shares traded on NSE, 47 percent were at the ask price and 40 percent were at the bid, Bloomberg data showed.

Indian equity benchmarks declined after fluctuating between gains and losses in the opening trade.

The S&P BSE Sensex fell 0.34 percent to 40,349.86 and the NSE Nifty 50 fell 0.35 percent to 11,896. The broader markets represented by the NSE Nifty 500 Index fell 0.37 percent.

Shares of eClerx Services halted a three-day losing streak. The stock rose as much as 9.9 percent, the most in over two weeks, to Rs 523.

The shares declined 52 percent in the past 12 months compared to a 16 percent rally in the Sensex. The scrip traded at 10 times its estimated earnings per share for the coming year, according to Bloomberg data.

Key Sales Highlights (YoY)

• Passenger vehicle sales down to 2,63,773 from 2,66,000.
• Domestic Two-wheeler sales down to 14,10,939 from 16,45,783.
• Domestic truck and bus sales down to 61,907 from 72,812.
• Domestic car sales down to 1,60,306 from 1,79,783.
• Domestic passenger vehicle sales down to 2,63,776 from 2,66,000

Source: SIAM

Nifty’s 11,900 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Dec. 12, rose 18.10 percent to Rs 43.40. Over 6.2 lakh shares were added to the open interest which stood at over 26.11 lakh shares.

Shares of Aster DM Healthcare rose as much as 0.98 percent to Rs 155.

The company’s arm has completed acquisition of 80 percent stake in Premium Healthcare for AED 8.69 million or Rs 16.8 crore.

The stock traded at 23 times its estimated earnings per share for the coming year, according to Bloomberg data. Of the shares traded on NSE, 57 percent were at the ask price and 39 percent were at the bid.

Shares of insurance companies gain in today’s trade, led by New India Assurance Company Ltd.’s 8 percent surge.

“The government may raise the overseas investment limit in insurance to 74 percent in the February budget, up from 49 percent now, possibly paving the way for foreign control of companies,” Economic Times reported quoting people familiar with the matter.

Shares of Hero MotoCorp extended gains for the second consecutive trading session. The stock rose as much as 1 percent to Rs 2,406.10.

The company will raise prices from Jan. 1, India’s largest two-wheeler maker said in a stock exchange filing. The price increase across two-wheelers range will be up to Rs 2000, across various models.

The scrip traded at 16 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of Yes Bank fell as much as 5.2 percent to Rs 53.35. The stock fell for third trading session in four.

The company’s board is poised to reject the offer of $1.2 billion from Braich in its Tuesday’s meeting, according to a Bloomberg report. (Read the full story here)

Of the shares traded on National Stock Exchange, 54 percent were at the ask price and 40 percent were at the bid, according to Bloomberg data.

Indian equity benchmarks fluctuated between gains and losses in the opening trade.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 40,482 and 11,933 respectively. The broader markets represented by the NSE Nifty 500 Index traded flat.

The market breadth was tilted in favour of buyers. About 729 stocks advanced and 704 shares declined on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Pharma Index’s 0.4 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 0.77 percent.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.12 percent to 70.96 against the greenback.

Index Futures

• Nifty December futures closed at 11966.7, premium of 29.2 points versus 34.2 points.
• Nifty December futures series open interest down 1 percent, sheds 1.1 lakh shares in open interest.
• Nifty Bank December futures closed at 31,397.6, premium of 81 points versus 76.8 points.
• Nifty Bank December futures series open interest down 9 percent, sheds 1.3 lakh shares in open interest.

Options

• Nifty PCR at 1.32 versus 1.25 (across all series)

Nifty Weekly Expiry: Dec. 12

• Max open interest on call side at 12,000 (25.7 lakh shares).
• Max open interest on put side at 11,900 (19.9 lakh).
• Open interest addition seen in 11,900P (+5.4 lakh shares), 11,500P (+3.2 lakh shares), 11,950C (+3 lakh shares).

Nifty Monthly Expiry: Dec. 26

• Max open interest on call side at 12,000 (23.3 lakh shares).
• Max open interest on put side at 12,000 (32.8 lakh shares).

• Dabur promoter Ratna Commercial acquired 60,000 shares on Dec. 4.
• KRBL promoters acquired 1.6 lakh shares from Dec. 5-6.
• Star Cement promoter Sumangal Business sold 10 lakh shares on Dec. 6.

• Manappuram Finance to meet DSP and Neuberger Berman from Dec. 11-13.
• TVS Motor to meet Motilal Oswal AMC on Dec. 10.
• Mahindra & Mahindra Financial Services to meet Julius Baer Wealth Advisors and Neuberger Berman from Dec. 10-12.
• Eicher Motors to meet Alchemy Capital and Birla Sunlife Insurance from Dec. 11-13.
• PI Industries to meet Centrum Broking and Taiyo Pacific Partners from Dec. 13-19.
• Narayana Hrudayalaya to meet Tencore Partners, SBI MF and Canara HSBC OBC Life Insurance from Dec. 10-11.
• Tata Steel to meet Motilal Oswal Securities and IIFL Securities from Dec. 11-13.
• Sudarshan Chemical to meet ICICI Securities on Dec. 10.
• Spicejet to meet Locus Investment, Sundaram MF and other investors from Dec. 10-16.

Indian equity benchmarks are set for a mixed start.

The S&P BSE Sensex rose 0.28 percent to 40,600.78 during the pre-market trade. and the NSE Nifty 50 traded little changed at 11,935.90.

• Ballarpur Industries, Hubtown to move out of short term ASM Framework.
• Adhunik Industries price band revised to 5 percent.

• Hero MotoCorp will raise prices from Jan. 1. The price increase across two-wheelers range will be up to Rs 2000, across various models.
• HDFC will acquire 1.15 crore shares or 9.12 percent equity of HDFC Credila Financial Services from its promoters Ajay Bohora and Anil Bohora for a total consideration up to Rs 395 crore. Post this acquisition the Corporation’s stake in HDFC Credila will increase from 90.88 percent to 100 percent.
• Mphasis clarified that $990 million minimum revenue commitment with DXC from September 2016 is not a cumulative calculation. The company and DXC continue to remain strategic partners.
• Aster DM Healthcare’s arm has completed acquisition of 80 percent stake in Premium Healthcare for AED 8.69 million or Rs 16.8 crore.
• Equitas Holding: SBI MF reduced stake from 3.69 percent to 1.95 percent in the company on Dec. 6.
• Kilitch Drugs: Board will consider the proposal of investing in setting up of new green field project in Ethiopia on Dec. 12.
• Redington increased its stake in Rajprotim Supply Chain Solutions from 88 percent to 100 percent for Rs 11 crore.
• Speciality Restaurants: Kotak Mahindra Investments reduced stake from 5.56 percent to 0.02 percent on Dec. 5.
• Quess Corp: Board approved cancellation and reduction of 7.13 crore shares held by Thomas Cook. Board approved allotment of 7.14 crore shares to eligible equity shareholders of Thomas Cook, as per entitlement ratio of the scheme.

• U.S. stocks fell in thin trading as investors turned cautious ahead of a week full of potential catalysts, from central bank meetings to a looming tariff deadline.
• The pound strengthened on Monday to a fresh two-and-a-half year high against the euro, as weekend opinion polls continued to point to a win for the ruling Conservatives in this week’s general election.
• Oil settled near the highest close since September as investors shifted their focus to the ongoing U.S.-China trade talks ahead of the looming tariff deadline.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 11,973.50 as of 8:40 a.m.

Asian stocks saw muted trading Tuesday as investors turned cautious ahead of the week’s potential catalysts, from central bank meetings to a looming tariff deadline.

Equities were little changed in Tokyo, marginally higher in Seoul and lower in Hong Kong and Shanghai, as investors awaited news on whether Washington will go ahead with a planned Dec. 15 tariff hike.

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