Closing bell: Equity indices were range-bound throughout the session and finally settled with minor loss in a lacklustre trade on Monday, as initial enthusiasm over a phase one China-US trade pact gave way to concerns about the lack of concrete details on the agreement.

At close, the NSE Nifty 50 Index was down 0.22 per cent at 12,060.70, while the S&P BSE Sensex index fell 0.17 per cent to 40,938.72.

The “phase one” agreement between U.S. and China suspended a threatened round of U.S. tariffs on a $160 billion list of Chinese imports that were scheduled to take effect on Sunday. The United States also agreed to halve the tariff rate, to 7.5 per cent, on $120 billion worth of Chinese goods.

Among the sectoral indices, except for Nifty IT index (up 1.03 per cent), Nifty Realty (up 0.28 per cent), and Financial Services (up 0.12 per cent), all other indices ended in flat to red.

In the Nifty pack, TCS, HCL Tech, Tech Mahindra, HDFC and Kotak Mahindra Bank ended up to 2.84 per cent higher. On the other hand Grasim, Adani Ports, ITC, Eicher Motors and JSW Steel shedded up to 2.37 per cent.

The market breadth was negative as 1,342 shares declined against advance of 1,144 shares, while 216 shares were unchanged.

Performance of Nifty sectoral indices

Why is CSB Bank losing sheen?

After a spectacular debut on listing, CSB Bank appears to be fast losing steam. The stock, which rallied over 50 per cent on the first day of listing (from its IPO price), has lost over 22 per cent in just two weeks. Read more here

Top Nifty gainers and losers

Wholesale inflation tames to 0.58 per cent

Wholesale inflation fell to 0.58 per cent in November 2019, down from 4.47 per cent in November 2018. Sequentially, wholesale inflation reported an increase, rising from 0.16 per cent in October 2019, according to a statement by the Ministry of Commerce and Industry.

The blow for consumers was softened by cheaper LPG and Crude Petroleum prices, but they had to shell out much more for expensive onion, potato, vegetables and cereals during November 2019. Read more here

China Aircraft Services inks pact with Ramco Systems

One of the largest third-party MRO providers, and a joint venture company among CNAC(G), UAL, CAL & Gama Aviation, China Aircraft Services Limited announced that it had signed an agreement with the global aviation software provider Ramco Systems to implement its Aviation Suite V5.8 for the end-to-end base and line maintenance operations.

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.

The mobile-enabled application will also offer real-time processing for a work order, thereby reducing the overall turnaround time. Hosted on cloud with mobility and optimisation features, the solution will replace disintegrated systems across various departments and seamlessly interface with other third-party airlines, flight following and HR systems.

HCL expands operations and workforce in Lithuania

HCL Technologies (HCL), a leading global technology company, has re-affirmed its commitment to innovation and growth in Lithuania with the opening of two new technology delivery centres in the capital city of Vilnius. The state-of-the-art Asgaard Keys and Technopolis Alfa sites provide leading-edge technology and digital transformation capabilities and services to HCL clients in the Baltic, Nordic and Benelux regions.

Senior Lithuanian government dignitaries honoured HCL’s strategic investments during a grand inauguration ceremony at the Asgaard Keys delivery centre in Vilnius.

According to Simonas Kep~ta, Chief Adviser to the President of the Republic of Lithuania on Economic and Social Policy, companies creating innovation and high added value are making a significant contribution to the development of the digital economy and socially responsible business culture in Lithuania.

Indoco gets EU GMP from UK-MHRA for its Sterile facility in Goa

Indoco Remedies announced that its sterile manufacturing facility (Plant II) at Verna, Goa, has received EU GMP certification from the UK Health Regulator. This is an outcome from the last successful inspection conducted by UK MHRA from September 16-20, 2019.

Commenting on this positive development, Ms Aditi Kare Panandikar, Managing Director – Indoco Remedies Ltd. said, “The receipt of EU GMP certification from MHRA for our sterile manufacturing unit is encouraging and reflects immense learning and adaptation of a compliant culture by our technical team."

Nifty Call: Go short on a fall below 12,090 levels

The Sensex and the Nifty began the session on a positive note amid weak Asian markets. The Nikkei 225 has fallen 0.3 per cent to 23,952 and Hang Seng index has also slipped 0.35 per cent to 27,591 levels in today's session. After a positive start, the domestic equity benchmark indices started to decline witnessing selling pressure at higher levels and are moving sideways.  Read more here

Essar Steel resolution to boost Q3 number: SBI chief

State Bank of India Chairman Rajnish Kumar on Monday said the resolution of Essar Steel will boost profitability in the third quarter of the current financial year.

Besides, resolution of other stressed assets which are in the pipeline will have positive impact in the fourth quarter, he said.

The resolution of Essar Steel is a huge positive for the economy, he said.

FMCG shares fall; Tata Global Beverages down 1.75%

Shares of FMCG companies were trading in the red in Monday's afternoon session. The Nifty FMCG index was trading down 1.08 per cent at 30,096.85.

Shares of Tata Global Beverages (down 1.75 per cent), Hindustan Unilever (down 1.71 per cent), ITC (down 1.47 per cent), Jubilant Foodworks (down 1.27 per cent) and United Breweries (down 1.21 per cent) were the top losers of the Nifty FMCG index. The share price of Emami, Nestle, Marico, Colgate Palmolive, Procter & Gamble Hygiene and Godrej Consumer Products too were trading lower.

Earlier, Moody’s Investors Service said that India’s weak household consumption will curb economic growth and weigh on the credit quality of Indian issuers in a range of sectors.

Motherson Sumi (140.8) - Buy

Investors with a medium-term perspective can buy the stock of Motherson Sumi Systems at current levels.

Since it took support from a significant base in the band between ₹91 and ₹95 in early October, the stock has been in a medium-term uptrend. Read more on the technicals here

TCS Launches kit helping enterprises to build Blockchain Apps 40% faster

Tata Consultancy Services , on Monday, announced the general availability of its Quartz'" DevKit, an intuitive, low code development kit for enterprises to quickly build and deploy blockchain applications on any popular blockchain platform.

The DevKit abstracts out the complexity of the underlying blockchain technology and provides a low code approach to build and deploy blockchain applications on any preferred blockchain platform - such as Hyperledger Fabric, Ethereum or R3 Corda - while allowing for platform-specific code to be written as an extension over the pre-built templates.

Pennar industries secures quality certification for its aerospace facility

Pennar Industries Limited , a leading value-added engineering products and solutions company, today announced that it had been certified to the AS9100 Rev. D quality management the standard for its Hyderabad Aerospace facility.

Earlier this year, in May 2019, Pennar Industries forayed into engineering products for the aerospace industry by establishing a production facility in Hyderabad. The company will cater to the domestic and global aerospace industry by supplying value-added precision-engineered products as per customers’ specifications.

AS9100 Rev. D Certification signifies Pennar’s ongoing commitment to meeting and exceeding increasingly stringent industry requirements for aerospace-related products for both the civil and military markets.

Maruti Suzuki bets big on automatic technologies

Maruti Suzuki India Limited has created a new milestone with the sales of over 6 lakh automatic transmission passenger vehicles. Out of these 6 lakh automatics sold, over 5 lakh vehicles are equipped with popular Auto Gear Shift (AGS) technology.

Sales of automatic vehicles accelerated in the last five years after the introduction of the accessible AGS transmission technology in Celerio in 2014.

In FY 2018-19 alone, the company had sold over 2 lakh units of automatic vehicles. The company offers automatic options in 12 models and a choice of three different automatic transmissions – Auto Gear Shift (AGS), Automatic Transmission (AT) and Continuous Variable Transmission (CVT).

The AGS is offered in Alto K-10, S-Presso, WagonR, Celerio, Ignis, Swift, Dzire and Vitara Brezza. The AT transmission is being provided in Ertiga, Ciaz and XL6 while Baleno comes equipped with CVT technology.

Markets update: Equity indices pared early gains to trade little changed on Monday, as initial enthusiasm over a phase one China-US trade pact gave way to concerns about the lack of concrete details on the agreement.

At 12.05 pm, The NSE Nifty 50 Index was down 0.03% 12,083.05, while the S&P BSE Sensex index rose 0.01% to 41,015.36.

The “phase one” agreement between U.S. and China suspended a threatened round of U.S. tariffs on a $160 billion list of Chinese imports that were scheduled to take effect on Sunday. The United States also agreed to halve the tariff rate, to 7.5%, on $120 billion worth of Chinese goods.

The Nifty IT index, which tracks the country's IT sector, firmed 1.27%, with Tech Mahindra gaining 2.2%.

RBI saw growth slowdown, acted ahead of time by cutting rates from February: Das

RBI Governor Shaktikanta Das on Monday said the central bank had acted ahead of time by starting to slash rates in February this year, and hoped the decision to pause the cuts earlier this month will prove to be a right call over time.

He also hoped for the US-China truce on trade tariffs, announced over the weekend, would last as he pitched for coordinated efforts to push global growth like those after the 2008 financial crisis.

The comments from Das come following a series of five consecutive rate cuts by RBI starting February this year by a cumulative 1.35 per cent.

India’s weak household consumption to curb economic growth: Moody’s

Moody’s Investors Service on Monday said that India’s weak household consumption will curb economic growth and weigh on the credit quality of Indian issuers in a range of sectors.

Moody’s has lowered its GDP growth projection for India for the fiscal year ending March 2020 to 4.9 per cent from 5.8 per cent.

The major factors responsible for weakening economic growth were rural financial stress, low job creation and liquidity constraints, Moody’s Investors Service said in a report.

“What was once an investment-led slowdown has now broadened into weakening consumption, driven by financial stress among rural households on the back of stagnating agricultural wage growth and constrained productivity, as well as weak job creation due to rigid land and labour laws,” said Deborah Tan, a Moody’s Assistant Vice President and Analyst.

Bullish breakout in crude oil futures

MCX COMDEX, the composite commodity index of the Multi Commodity Exchange (MCX), is moving upwards following an uptick in crude oil price. Crude oil is the largest component of the index with 33.2 per cent weight. Gold, the second-largest component, continues to move sideways. Read more on the analysis here

What led to the downfall of VA Tech Wabag?

It was only in 2014 that the Centre flagged concerns over the looming water crisis in the country and, among other initiatives, launched its flagship Namami Gange programme. VA Tech Wabag , a company with years of expertise in water treatment, sewage and effluent treatment, suddenly was in the limelight, catching investor fancy at the time. Click here to read the analysis

Why you should buy Gulf Oil Lubricants

Lubricant maker Gulf Oil Lubricants India has managed to hold its own despite the downturn in the automotive sector — its key customer base that accounts for more than three-fourth of its business. The company’s net profit in the recent September 2019 quarter was up 54 per cent y-o-y at ₹ 62 crore, aided by better margins that offset weakness in volumes, and the recent corporate tax rate cuts. Click here to read the stock call

Glenmark’s Baddi unit gets GMP certificate from European regulator

Glenmark Pharmaceuticals on Monday said that its Baddi manufacturing unit has received Good Manufacturing Practice (GMP) certificate from European regulator State Institute for Drug control (SUKL).

“The European regulator has just issued a certificate of compliance for the facility stating that it complies with the principles and guidelines of Good Manufacturing Practice (GMP) laid down in the directive 2003/94/EC which stipulates the requirements to fulfil GMP recommendations of WHO,” Glenmark Pharmaceuticals said in a regulatory filing.

Tata Steel faces a key resistance

The recent bull trend in the stock faced a hurdle, and it pulled back twice in the past one month. But the stock managed to restrict the declines, forming higher lows at ₹383.1 and ₹389. Last week, the stock went up and closed at ₹428.4. Read more on the technicals here

Consider long on Axis Bank

The outlook for the stock of Axis Bank (Rs 752.25) is positive. It finds immediate support at Rs 715 and a crucial one at Rs 660. If the current trend sustains and if the stock rules above Rs 732, it has the potential to reach Rs 1,020.

We expect the stock to maintain the current bullish trend.

F&O Pointers: Axis Bank December futures have been seeing the unwinding of open interest in the last four days. From a high of about 5.6 crore shares, open interest fell to 5.20 crore shares. However, the January contract has added open positions, signalling a healthy rollover by traders.

Option trading indicates support at Rs 720.

Strategy: Traders can consider going long on Axis Bank futures with a stop loss at Rs 732. The stop-loss can be shifted to Rs 750 if the stock opens on a positive note and stays well above this mark on Monday. Investors, who have patience with risk-taking ability, can rollover positions and aim for a target of Rs 815 initially.

Alternatively, traders could consider a calendar bull-call spread strategy. This can be done by selling RS 750-call of this month and simultaneously buying the same option of next month. They closed with a premium of Rs 16.65 and Rs 34.65 respectively. This will cost traders Rs 18/contract or Rs 21,600, as the market lot is 1,200 shares.

A maximum loss is the premium paid (Rs 18), profit potentials are unlimited.

If the stock closes at or below Rs 750, the loss will occur.

On the other hand, a close above Rs 768 will start to turn the position positive.

We advise traders to hold it for at least two weeks.

RIL consolidates, with a positive bias

The recent uptrend in the stock of RIL, that began in August, seems to have takena pause. The price has been consolidating for the past three weeks. Read more on the technicals here

Brookfield Infrastructure to invest Rs 25,215 cr in telecom tower assets of RIL

Canada’s Brookfield Infrastructure Partners LP will invest Rs 25,215 crore in telecom tower assets of Reliance Industries , the Indian firm said on Monday.

“Further to the earlier disclosures on the subject, Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), has entered into binding agreements with Brookfield Infrastructure Partners L.P. and its institutional partners, for an investment of Rs. 25,215 crore in the units to be issued by the Tower Infrastructure Trust,” it said in a stock exchange filing.

Shares of Reliance Industries were trading at Rs 1,579.25 apiece on the BSE.

Infosys continues to trade sideways

The stock of Infosys continues to trade along the sideways trend. Since the beginning of November, the stock has beenheld between two key levels at ₹690 and ₹725. Read more on the technicals here

ITC rebounds from a crucial support

The stock of ITChas been on a decline since the beginning of November. The decline was stopped at the support of ₹235. This level has been acting as a strong support since August. Read more on the technicals here

SBI regains bullish momentum

The uptrend in the SBI stock since the beginning of October witnessed a correction after it registered a four-month high of ₹351 in late November. Read more on the technicals here

Life insurance stocks hit a sweet spot

The life insurance space in India has been gaining significant traction, with top private sector players delivering strong performances over the past two to three years.

After several ups and downs and regulatory upheavals, the sector is emerging as an attractive opportunity for investors looking to invest in the financial services space. Click here to read the Big Story

Daily Rupee call: Initiate longs with stop loss at 71.1

The rupee (INR), on Friday, closed at 70.81 versus its previous close of 70.83 against the dollar (USD). Though we cannot see much change on a closing price basis, the rupee witnessed considerable intraday volatility. It opened much higher at 70.52 against the previous close of 70.83 but weakened throughout the day closing at 70.81. Read more on the technicals here

Broker’s call: Sun TV Network (Buy)

Sun TV ’s subscription revenues are growing at a strong pace of over 20 per cent as digitisation wave with the New Tariff Order (NTO) tailwinds are impacting the business positively. Digitisation is also proliferating with momentum in Tamil Nadu with market conditions easing over there. Click here to read more

JB Chemicals buyback offer opens on today

The buyback offer from JB Chemicals & Pharmaceuticals will open for subscription on Monday and close on December 30. The company plans to buy back 29.54 lakh shares at a price of ₹440.

The company said it proposes to utilise an aggregate amount not exceeding ₹130 crore for this buyback, which represents 9.33 per cent of the total paid-up equity share capital. Shareholders holding the equity shares as on the record date of November 22 will be eligible to participate in the buyback.

Why it’s time to re-look mid-cap space seriously

Hearing only gloomy story all around except about India's benchmark indices? The second quarter gross domestic product growth rate was 4.5 per cent as against 7 per cent during corresponding period of last fiscal (2018-19). This is the lowest growth rate seen after fourth quarter (January-March) of 2012-13 and the sixth successive quarter of declining growth. Read more here

Oil prices fall but hold near 3-month high on trade deal agreement

Oil prices fell but remained near three-month highs on Monday after the United States and China agreed to an initial trade deal, a move market participants said could stoke oil demand and boost trade flows.

The United States and China cooled their trade war on Friday, announcing a “phase one” agreement that reduces some U.S. tariffs in exchange for what U.S. officials said would be a big jump in Chinese purchases of American farm products and other goods.

Brent crude oil futures fell 23 cents, or 0.4% to $64.99 a barrel, after closing at a near three-month high on Friday.

West Texas Intermediate crude was down 23 cents or 0.4% to $59.84 a barrel.

Come January, buying or selling shares will require upfront margin deposit

ome January, retail investors will have to maintain deposit money with their stock brokers to buy or sell shares. As in the derivatives segment, market regulator SEBI has now mandated brokers to collect an upfront cash margin even for simple buying and selling of shares. Institutional investors who treat equity trades as business transactions, including foreign portfolio investors and mutual funds, have been exempted from this rule. Read more here

Opening bell: The benchmark index Nifty opened gap up with a gain of 35.45 points at 12,122.15-mark. The Sensex is up 102 points at 41,112.33

On the sectoral front, PSU Banking and Metal continued to lead the gaining list. All the sectoral indices are trading in green except for Pharma index.

At BSE, about 562 shares have advanced, 294 shares declined, and 53 shares are unchanged.

All other sectoral indices are trading in the green, while Midcap index is up 0.35 per cent.

Index Outlook: Sensex, Nifty back at resistance level

Following a transitory initial decline, the domestic equity benchmark indices — the Sensex and the Nifty — did a volte-face and surged on the back of positive global cues as the US and China agreed on an initial trade deal. However, investors need to exercise caution in the ensuing trading sessions. Macro data was not comforting, with a drop in IIP (Index of Industrial Production) and a spike in CPI (Consumer Price Index). Click here to read the technical analysis

Asian shares up as 'phase one' trade deal boosts confidence

Asian shares moved higher on Monday as investors welcomed a trade agreement between Beijing and Washington over the weekend, but enthusiasm was capped by lingering scepticism about the deal and ongoing relations between China and the United States.

U.S. Trade Representative Robert Lighthizer on Sunday said a deal was “totally done”, notwithstanding some needed revisions, and would nearly double U.S. exports to China over the next two years.

That helped push the MSCI's broadest index of Asia-Pacific shares outside Japan, which had touched its highest level since April 24 on Friday, up 0.27%.

Australia's S&P/ASX 200 led the way as it jumped 1.24%, while shares in Taiwan and South Korea added about 0.1%.

But Chinese investors had a more tepid reaction, pulling the benchmark Shanghai Composite index down 0.16% as investors took profits following a 1.8% gain on Friday.

The small decline came despite data showing the country's industrial output growth and retail sales jumped more than expected in November.

Japan's Nikkei 225 also succumbed to profit-taking, easing 0.14% after surging 2.55% to a 14-month closing high on Friday.

COMMENT NOW