Sensex, Nifty Decline With Global Markets As U.S.-Iran Tensions Escalate

Indian equity benchmarks ended lower, mirroring global peers as tensions between U.S. and Iran escalate.

The S&P BSE Sensex fell 0.39 percent to end at 41,464.61 and the NSE Nifty 50 fell 0.45 percent to close at 12,226.65. The broader markets represented by the NSE Nifty 500 Index fell 0.38 percent.

“The flare-up in the Middle East is the key reason for the fall in the market today. There could be some profit booking after the rally we have seen so far,” G Chokkalingam, founder of Equinomics Research & Advisory told Bloomberg.

Nine out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Media Index’s 2.2 percent fall. On the flip side, the NSE Nifty IT Index was the top sectoral gainer, up 1.4 percent.

Rites

• Stock rose as much as 5.7 percent to Rs 317.60.
• The company secured order worth Rs 100 crore from Bangladesh Government.
• Project Management Consultancy work for Highways.

IIFL Securities

• Stock rose as much as 4.9 percent to Rs 47.
• Rare Enterprises acquires 0.9 percent stake at 42.83 each.

Interglobe Aviation

• The stock reversed losses and rose as much as 3.1 percent to Rs 1,374
• EGM called by RG Group comprising of Rakesh Gangwal, Shobha Gangwal and The Chinkerpoo Family Trust
• RG Group collectively holds 36.64 percent of the paid-up share capital of the company.

NIIT Tech

• The stock rose as much as 3.8 percent to Rs 1,640.
• Fresh longs seen with a high open interest of 15 percent.
• Trading volume was two times its 20-day average.

Indian equity benchmarks extended declines to trade at day’s low.

The S&P BSE Sensex fell 0.5 percent to 41,407 and the NSE Nifty 50 fell 0.59 percent to 12,210. The broader markets represented by the NSE Nifty 500 Index fell 0.51 percent.

Hathway Cable & Datacom

• Stock swung from a gain of as much as 10.36 percent to fall as much as 2.5 percent.
• Trading volume was more than 80 times its 20-day average.

Sharda Cropchem

• Stock rose as much as 13.8 percent to Rs 319.95.
• Trading volume was more than 20 times its 20-day average.

HAL

• Stock swung from a fall of as much as 1.6 percent to gain as much as 2.9 percent.
• Trading volume was more than 20 times its 20-day average.

Zensar Technologies

• Stock rose as much as 12.3 percent to Rs 202.40.
• Trading volume was almost nine times its 20-day average.

• Suzlon Energy will offer Indian lenders a proposal to restructure debt at a 68% discount, after an assessment by its rating company
• Suzlon plans to meet creditors next week to discuss the proposal

Source: People Familiar With The Matter

Shares of Suzlon Energy hit their upper circuit of 20 percent at Rs 2.70.

The risk-on sentiment that ushered in the new year took a hit on Friday as tension between the U.S. and Iran escalated, sinking stocks and American equity futures and buoying haven assets including gold, the yen and Treasuries.

• The Stoxx Europe 600 Index slid as almost every industry sector retreated.
• Gold rallied and West Texas oil jumped as much as 4.4 percent.

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Source: Bloomberg

Shares of InterGlobe Aviation reversed losses and rose as much as 3.1 percent to Rs 1,374 after Co-Founder Rakesh Gangwal calls for EGM on Jan. 29.

InterGlobe Aviation Says:

• An extraordinary general meeting scheduled to be held on January 29 will consider the change in the company’s articles of association
• EGM called by RG Group comprising of Rakesh Gangwal, Shobha Gangwal & The Chinkerpoo Family Trust
• RG Group collectively holds 36.64 percent of the paid-up share capital of the company

Source: Exchange Filing

Indian equity benchmarks declined, led by the fall in HDFC twins and Axis Bank Ltd.

The S&P BSE Sensex fell 0.4 percent to 41,453.81 and the NSE Nifty 50 fell 0.46 percent to 12,225. The broader markets represented by the NSE Nifty 500 index fell 0.34 percent.

Eight 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 IT Index was the top sectoral gainer, up 1.66 percent.

The Indian rupee extended opening losses against the U.S. dollar. The home currency depreciated as much as 0.5 percent to 71.93 against the greenback.

Nifty’s 12,200 put option contract was among the most active Nifty option contracts on National Stock Exchange.

The premium on the contract, which is set to expire on Jan. 9, surged 121.41 percent to Rs 51.70. Over 5.58 lakh shares were added to the open interest which stood at over 24.84 lakh shares.

The NSE Nifty Bank Index resumed declines after a one-day breather. The decline in the 12-share gauge was led by the fall in Bank of Baroda, Punjab National Bank and HDFC Bank Ltd.

Shares of Oil & Natural Gas Corporation rose as much as 4.2 percent to Rs 133.40.

The oil explorer won seven blocks offered under the fourth auction round, according to a Bloomberg report.

Besides, International brokerage firm Goldman Sachs upgraded ONGC’s stock rating to ‘Buy’ from ‘Neutral’, but cut its price target to Rs 175 from Rs 220.

About 12 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Hero MotoCorp fluctuated between gains and losses to trade 0.16 percent lower at 2,425.50.

India’s largest two-wheeler maker’s December sales fell 6 percent year-on-year to 4,24,845 units.

Of the shares traded, 42 percent were at the ask price and 37 percent were at the bid, according to Bloomberg data. The stock traded at 16 times its estimated earnings per share for the coming year.

Shares of the oil marketing companies declined after crude oil spiked as tensions in the Middle East flared after a U.S. strike near Baghdad international airport killed a top Iranian general.

Indian equity benchmarks opened lower after gaining for two consecutive trading sessions.

The S&P BSE Sensex fell 0.3 percent to 41,501 and the NSE Nifty 50 fell 0.3 percent to 12,241.70. The broader markets represented by the NSE Nifty 500 Index fell 0.2 percent.

The market breadth was tilted in favour of sellers. About 759 shares declined and 716 stocks advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 0.79 percent fall. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 0.3 percent.

The yield on the 10-year note fell as much a two basis points to 6.48 percent.

That comes after the Reserve Bank of India has announced its third round of simultaneous purchase and sale of government securities. (Read more here)

Index Futures

• Nifty January futures closed at 12,339.3, premium of 57 points versus 61.3 points.
• Nifty January futures open interest up 3.6 percent, adds 4.3 lakh shares in open interest.
• Nifty Bank January futures closed at 32,579, premium of 135 points versus 182 points.
• Nifty Bank January futures open interest down 0.6 percent, sheds 73,000 shares in open interest.

Options

• Nifty PCR at 1.46 versus 1.14 (across all series)

Nifty Weekly Expiry: Jan. 9

• Max open interest on call side at 12,300 (19.1 lakh shares).
• Max open interest on put side at 12,200 (19.2 lakh shares).
• Open interest addition seen at 12,200P (+13.4 lakh shares), 12,300C (+11.1 lakh shares), 12,250P (+8.9 lakh shares).

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (22.6 lakh shares).
• Max open interest on put side at 12,000 (38.6 lakh shares).

• KEC International to meet IIFL Securities on Jan. 3.

• Aarti Industries promoters sold 25,200 shares on Dec. 31.
• Filatex India promoters acquired 5.50 lakh shares on Dec. 31.
• Tourism Finance Corp of India promoter Redkite Capital Private Limited sold 24,91,000 shares on Dec. 31.
• Swelect Energy Systems promoter R.Chellappan acquired 18,943 shares from Dec. 13 to Dec. 30.
• Action Construction Equipment promoter Vijay Agarwal acquired 23,562 shares from Dec. 27 to Dec. 31.
• Precision camshafts promoters acquired 20,000 shares on Dec. 30.
• S Chand & Co promoter Himanshu Gupta acquired 5,000 shares from Dec. 30 to Dec. 31.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.35 percent to 71.61 against the greenback.

Indian equity benchmarks are set for a mixed start.

The S&P BSE Sensex rose 0.2 percent to 41,708.38 during the pre-market trade and the NSE Nifty 50 traded little changed at 12,281.

• HDFC said it has recorded a fair value gain of Rs 9,020 crore from Gruh-Bandhan merger.
• Hero MotoCorp December sales fell 6 percent year-on-year to 4,24,845 units. (BloombergQuint estimate: 4,31,250 units).
• JSW Energy said the company entered into an agreement with Jaiprakash Power Ventures Ltd. to restructure the principal outstanding amount of Rs.751.77 crore, owed by JPVL to the company.
• NMDC set lump order price at Rs 2,800 per tonne; Fines at Rs 2,560 per tonne.
• ONGC won seven blocks offered under the fourth auction round, according to a Bloomberg report.
• GAIL: The company said no amount is payable to Indian government under internet license, according to a Bloomberg report.
• Rites JV secured Rs 100 crore order from Government of Bangladesh.
• Natco Pharma filed an application for a generic version of cancer drug Lonsurf. Lonsurf has recorded sales of $150 million in 2018 in U.S. as per IQVA.
• Peninsula Land said a delay in government rent payout has affected loan repayment. It clarified that there was no default in payment of any financial obligation by the company.
• Kirloskar Electric said the pact with SSEL has been put on hold indefinitely.
• FDC received GMP certificate from U.K. Medicines and Healthcare Products Regulatory Agency for Goa unit.
• Krebs Biochemicals & Industries will issue up to 13.70 lakh equity shares top promoter group IPCA Laboratories at a price of Rs 86 per share. Additionally, the company will also issue 35.60 lakh convertible warrants of Rs 86 each to promoters IPCA laboratories.
• Vipul Organics received Maharashtra Pollution Control Board approval to commence operations at its new plant in Tarapur.

• The S&P 500 jumped 0.8 percent to a record on the year’s first trading day, with megacaps Apple, Alphabet and Nike notching all-time highs. It was among the best starts for U.S. stocks in the past decade.
• Oil spiked as tensions in the Middle East flared after a U.S. strike near Baghdad international airport killed a top Iranian general.
• The Stoxx Europe 600 Index advanced as every sector finished in the green.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.15 percent to 12,319 as of 8:15 a.m.

The risk-on sentiment that ushered in the new year took a hit on Friday as tensions flared in the Middle East, buoying the yen and sending U.S. equity futures lower.

Stocks in Asia pared gains and Treasury futures advanced as news broke that a U.S. airstrike in Baghdad reportedly killed a top Iranian commander.

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