Sensex, Nifty Halt Three-Day Losses As Oil Extends Slump

Indian equity benchmarks staged a sharp up move in afternoon deals led by HDFC twins, Reliance Industries and Larsen & Toubro.

The Sensex rose 0.51 percent or 180 points to 35,650 and the NSE Nifty 50 Index rose 0.62 percent or 66 points to 10,730.

Earlier in the day, the benchmarks fell sharply but a short-covering rally in afternoon trade along with Brent crude extending drop below $50 per barrel lifted the markets.

The Sensex surged 640 points from day's lowest level while the Nifty touched a high of 10,747 and low of 10,534.

Markets rallied after falling nearly 3 percent in last three sessions as domestic sentiment got a boost from crude dropping below $50 per barrel amid short covering ahead of December derivatives expiry, AK Prabhakar, head of research at IDBI Capital Markets told BloombergQuint over phone.

Thirteen of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Telecom Index's 1.92 percent gain. On the flipside, S&P BSE Information Technology index was top loser, down 0.7 percent.

Mid-cap stocks underperformed their larger peers as the S&P BSE MidCap Index dropped 0.2 percent.

Banking shares led gains in the benchmark Nifty Index. HDFC Bank was the biggest contributor towards gain in the index.

The Nifty Bank Index-the gauge of banking shares-rose 600 points from intraday lows to 27,008.55.

Markets rallied after falling nearly 3 percent in last three sessions as domestic sentiment got a boost from crude dropping below $50 per barrel amid short covering ahead of December derivatives expiry, AK Prabhakar, head of research at IDBI Capital Markets told BloombergQuint over phone.

• Vadilal Industries: The Ahmedabad-based ice cream maker fell as much as 15 percent to Rs 443 after its board deferred limited review report saying audit committee and board of directors have not been able to conclude on certain matters.
• Heritage Foods: The Hyderabad-based dairy products maker rose for second day in a row after India extended ban on import of milk and milk products from China.
• Shree Cements: The Kolkata-based cement maker rose 3 percent to Rs 17,260 after it fully commissioned integrated cement plant at Gulbarga, Karnataka with capacity of 3MTPA.

Indian equity benchmarks rebounded from intraday low levels led by gains in HDFC twins, L&T and Axis Bank.

The S&P BSE Sensex recovered 433 points from intraday low to 35,486 and the NSE Nifty 50 Index advanced 12 points or 0.12 percent to 10,676.

Six of 11 sector gauges compiled by National Stock Exchange were trading higher led by the Nifty Media Index's 1.6 percent gain. On the flipside, Nifty IT Index was top loser, down 0.9 percent.

Overall market breadth remained negative as 1,509 shares were declining while 870 were advancing on BSE.

Shares of the Bengaluru-based mobile content provider slumped as much as 19.27 percent, the most since August 2015, to Rs 33.30 on heavy volumes.

Trading volume was 15 times its 20-day average, according to data compiled by Bloomberg.

From last couple of quarters, the company has been going through a series of transformation and we are in process of transforming into mobile entertainment company, Ganesh Murthy, CFO of Onmobile told BlombergQuint in an interview.

Ringback tones which was about 50 percent of our revenue has been shrinking primarily due to telecom sector not doing well and we are looking at lower and lower ARPUs, he added.

Meanwhile, the company is looking at two growth areas of mobile games and videos and that will offset decline in revenue caused slowing ringback tone business.

• Indian equity benchmarks came off intraday low levels as ITC and Axis Bank bucked the weak trend.
• The Sensex fell 0.56 percent or 190 points to 35,280 and Nifty 50 Index declined 0.37 percent or 39 points to 10,624.
• The overall market breadth was bearish as 1,563 shares were declining while nearly 700 stocks were advancing on the BSE.

Top five Nifty Losers:

• Yes Bank down 3.4 percent
• IndusInd Bank down 2.26 percent
• Sun Pharma down 2.25 percent
• Indiabulls Housing Finance down 1.74 percent
• State Bank of India down 1.67 percent

Top five Nifty Gainers

• Zee Entertainment up 3.01 percent
• UPL up 1.09 percent
• Titan up 1.08 percent
• Adani Ports up 0.79 percent
• ITC up 0.62 percent

• 3M India: The Bengaluru-based container and packaging company fell as much as 8.78 percent, the most in over two months, to Rs 19,644. Trading volume was more than 30 times its 20-day average.
• JK Lakshmi Cement: The Delhi-based cement maker fell as much as 1.43 percent to Rs 276.10. Trading volume was more than 20 times its 20-day average.
• Excel Crop Care: The Mumbai-based crop protection company rose as much as 2 percent to Rs 3,759.20. Trading volume was four times its 20-day average.
• TI Financial Holdings: The Chennai-based fabricated metal and hardware maker rose as much as 1.29 percent to Rs 512. Trading volume was 11 times its 20-day average.

Shares of airline operators rose after Brent crude dropped below $50 per barrel for first time since July 2017.

• SpiceJet rose as much as 3.82 percent to Rs 86.95
• Jet Airways climbed 4.62 percent to Rs 263.70

Nifty's 10,500 put option contract was among the most active option contracts on the National Stock Exchange.

Premium on the contract surged 102 percent to Rs 28.40. Over 12.75 lakh shares were added to the open interest which stood at over 44.80 lakh shares.

Indian equity benchmarks extended decline dragged by Reliance Industries, Infosys, TCS and Kotak Mahindra Bank.

The Sensex fell 1.25 percent or 442 points to 35,039 and the NSE Nifty 50 Index dropped 1.13 percent or 120 points to 10,543.

All the 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Realty Index's 2 percent fall.

The overall market breadth was extremely bearish as 1,540 shares were declining while 395 were advancing on BSE.

Shares of the country's largest carmaker fell as much as 1.7 percent to Rs 7,402 after it announced to recall 5,900 Super Carry vehicles.

The recall is to inspect a possible defect in fuel filter, Maruti Suzuki said in an exchange notification.

Shares of the Chennai-based specialty chemical maker rose as mcuh as 6.3 percent, the most in nearly a month, to Rs 156.25.

The company has commissioned PVC-O project in Sricity, Andhra Pradesh, Chemfab Alkalis said in an exchange notification.

Shares of the Bengaluru-based real estate developer rose as much as 6.13 percent to Rs 220 after Motilal Oswal initiated coverage on the stock with a buy for target price of Rs 282.

Motilal Oswal in a note said:

• Focus on scaling up leasing portfolio is a tactical shift.
• Stake sale in hotel portfolio to fund future capex.
• Residential real estate sector to recover with affordable housing an opportunity.

Investors are not easily coming to buy into premium valuations as market mood is sour, Deven Choksey of KR Choksey Securities told BloombergQuint in an interview.

Key highlights of the conversation:

• Fundamental prospects of HUL intact; Any fall could be a buying opportunity
• Buying should emerge in 2019 in Maruti Suzuki
• Like Kotak Bank and HDFC Bank; Will buy on any dips

Shares of the FMCG giant fell as much as 2.43 percent to Rs 1,741.25 after anti-profiteering authority ruled that Hindustan Unilever profiteered to the extent of Rs 535 crore against the company’s claim of Rs 160 crore.

According to the order of National Anti-Profiteering Authority posted on its website today, Hindustan Unilever Ltd. profiteered Rs 419.67 crore due to sales realisation following an increase in base prices after a cut in goods and services tax rate cut in two slabs—from 28 percent to 18 percent and 18 percent to 12 percent.

Shares of oil marketing companies rose after the Brent crude dropped to lowest level in over 17 months to $49.93 per barrel as broader financial market turmoil and worries over U.S. supply countered signals from the OPEC+ coalition that it may extend or deepen output cuts.

• Indian Oil rose as much as 1.6 percent to Rs 137.20
• Bharat Petroleum advanced 1.81 percent to Rs 371.55
• Hindustan Petroleum jumped 1.91 percent to Rs 251

Indian equity benchmarks declined dragged by Hindustan Unilever, Infosys and Reliance Industries mirroring losses in U.S. equity futures after CNN reported that President Donald Trump’s frustration with Treasury Secretary Steven Mnuchin is rising.

The S&P BSE Sensex fell 0.76 percent or 271 points to 35,198 and the NSE Nifty 50 Index dropped 0.67 percent or 70 points to 10,593.

All sector gauges barring the S&P BSE Oil & Gas Index were trading lower led by the S&P BSE Information Technology Index's 1.2 percent decline.

The mid- and small-cap shares were also facing selling pressure as the S&P BSE MidCap Index fell 0.95 percent and the S&P BSE SmallCap Index dropped 0.76 percent.

Rupee opened higher at 69.93 per dollar against Monday's close of 70.14 after Brent crude dropped below $50/Barrel.

The local unit rose as much as 0.5 percent or 35 paise to 69.79 against the greenback.

Crude is likely to test new bottom as investors are nervous on how talks between U.S. and China pan out regarding trade tariffs, Vandana Hari of Vanda Insights told BloombergQuint in an interview.

Key highlights of the conversation:

• In the near term looks it like investors are unwinding positions and expect crude to test new bottom.
• OPEC need to sit quite as they can’t do much to arrest crude fall.
• Recovery in crude prices will depend on sentiment in financial markets which will depend on how talks between U.S. and China pan out regarding trade tariffs as that is a major factor that has made investors nervous.

Motilal Oswal On Brigade Enterprises

• Initiated ‘Buy’ with a price target of Rs 282.
• Focus on scaling up leasing portfolio is a tactical shift.
• Stake sale in hotel portfolio to fund future capex.
• Residential real estate sector to recover with affordable housing an opportunity.

Macquarie On ITC

• Maintained ‘Outperform’ raised price target to Rs 376 from Rs 367.
• ITC is winning back market share in cigarettes, leading to volume recovery.
• Expect earnings recovery to continue with strong volume recovery.
• Margin expansion in FMCG will lead to valuation re-rating.

UBS On Power Grid

• Maintained ‘Neutral’ with a price target Rs 225.
• Regulatory status quo a positive, but best is behind.
• Project execution remains tepid posing risk to our estimates.
• Additions to pipeline crucial for medium term earnings growth visibility.

• Nifty December futures closed trading at 10,682, with a premium of 18 points
• Maximum open interest for December series call at 11,000 strike price (open interest at 57.9 lakh shares)
• Maximum open interest for December series put at 10,500 strike price (open interest at 32.0 lakh shares)

Insider Trades

• Jayshree Tea and Industries ltd. promoter Manav Investment & Trading Co. Ltd sold 26,793 shares on Dec. 20.
• Crest Ventures promoter V J Finsecurities Private Limited acquired 10,573 shares from Dec. 14–21.
• Steel Strips Wheels promoter Chandigarh Aircraft Management Services Pvt Ltd acquired 6,250 shares on Dec. 21.
• Omax Autos promoters acquired 21,016 shares from Dec. 12-21.
• Confidence petroleum India Ltd. promoter Confidence LPG Bottling Pvt Ltd acquired 33,054 shares on Dec. 21.
• RPG Life Sciences promoter Ektara Enterprises LLP acquired 19,783 shares from Dec. 20–21.
• Aster DM Healthcare promoter Dr. Azad Moopen acquired 60,000 shares on Dec. 20.

(As reported on Dec. 24)

Bulk Deals

Gayatri Projects

• Kavi Global Opportunity Master Fund LP bought 30.5 lakh shares (1.6 percent) at Rs 187.45 each.
• Goldman Sachs Singapore PTE sold 30.5 lakh shares (1.6 percent) at Rs 187.45 each.

Nath Bio-Genes India

• Kavi Global Opportunity Master Fund LP bought 5 lakh shares (2.6 percent) at Rs 406.7 each.
• Goldman Sachs Singapore PTE sold 5 lakh shares (2.6 percent) at Rs 406.7 each.

Punj Lloyd

• IFCI Ltd sold 19.62 lakh shares (0.6 percent) at Rs 3.92 each.

Shanti Educational Initiatives

• Anil R Dhanuka bought 4.14 lakh shares (2.6 percent) at Rs 128 each.
• Albula Investment Fund sold 4.15 lakh shares (2.6 percent) at Rs 128 each.

Who’s Meeting Whom

• Pidilite Industries to meet Aviva Investors, London on Dec. 27.

• Brent crude fell as much as 1.1 percent to $49.93 per barrel on London-based ICE Futures Europe exchange on Wednesday.
• The global benchmark slides below $50/bbl for the first time since July 2017.
• Futures for Feb. settlement were trading down 27 cents at $50.20/bbl at 9:44 am Singapore time.

• Suprajit Engineering expects second half of current financial year to be better. Consolidation of auto component space to gather pace; open for both strategic asset purchases and acquisition. Expansion plans are progressing well.
• JK Cements to raise funds via QIP; Floor price set at Rs 732.42 per share.
• Chemfab Alkalis commissions PVC-O project at Andhra Pradesh facility.
• Tata Motors has no plans to sell stake in Jaguar Land Rover. (Bloomberg)
• Autoline Industries entered into MOU with Poddar Habitat to transfer land at Chakan, Pune. The company will utilize the sale proceeds to settle debt that has a charge on the above said immovable property and reduce overall debt exposure of the company.
• Nagarjuna Fertilizers says it is in process of a long-term debt resolution with its lenders. It has also restarted production of Urea from Unit 1 of Kakinada plant
• PFC transfers wholly-owned subsidiary to Adani transmission.
• Blue Blends defaults on payment of principal and interest amounting to Rs 49.92 crore on NCDs issued by the company.
• Jagran Prakashan says board of directors scheduled to meet on Jan. 3 to approve the issuance of secured redeemable non-convertible debentures up to Rs 300 crore.
• Vadilal Industries defers limited review report; says audit committee and board of directors have not been able to conclude on certain matters.

• Vedanta to set up 4.5 million tonne steel plant in Jharkhand
• Trump voices confidence in Mnuchin, Fed amid tailspin in markets
• Trump urges buying the dip after stocks sink on D.C. dysfunction
• Nissan won’t rule out Renault stake sale
• Crude spirals to 18-month low amid global economic concerns
• RBI to soon release new Rs 20 currency note
• World economy is set to feel the delayed trade war pain in 2019
• NCLT recoveries may cross Rs 1 lakh crore in 2019
• GST rate cuts: Impact on businesses and government
• Cement prices fall for fifth straight month

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.2 percent to 10,636 as of 7:26 a.m.

Japanese stocks recouped a portion of their biggest daily slide in more than two years, while U.S. equity futures edged up after a volatile open on Wednesday as traders assess how much selling pressure remains in what’s been the most brutal month for global stocks since 2008.

The yen retreated and Treasury yields ticked higher as investors took in comments from President Donald Trump about the Federal Reserve that were less abrasive than earlier this month.

Stocks

• The MSCI Asia Pacific Index was up 0.5 percent as of 9:10 a.m. in Hong Kong.
• The Topix Index rose 1.7 percent.
• Futures on the S&P 500 Index advanced 0.3 percent. The underlying gauge is 7 points away from completing a full-blown bear-market drop.
• The Kospi Index was down 0.8 percent.
• Futures on the FTSE China A50 index climbed 0.3 percent earlier.

Currencies

• The Japanese yen slipped 0.3 percent to 110.61 per dollar.
• The euro was up 0.1 percent at $1.14.
• The offshore yuan was little changed at 6.8958 per dollar.
• The Bloomberg Dollar Spot Index was little changed.

Commodities

• West Texas Intermediate crude was up 1.4 percent at $43.13 a barrel.
• Gold was steady at $1,268.43 an ounce.