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Closing Bell
Key stock market indices fell sharply tracking weak global markets amidst concerns over deepening slowdown in the economy. The Dow Jones ended 105 points lower overnight. European shares too retreated for the second day in a row today as tariff deadline threatens to increase a US-China trade dispute.
Added to this negative sentiment, India's GDP growth concerns for the third quarter has also battered the investors mood. It is expected that the GDP growth could go well below 5 per cent as there seems to be no major improvement in earnings this year.
The benchmark BSE Sensex ended lower by 247.55 points, or 0.61 per cent, to 40,239.88.
In a similar movement, the broader NSE Nifty declined 80.70 points, or 0.68 per cent, to 11,856.80.
Nifty IT shed over a per cent after the rupee extended morning gains and trading near day's high level at 70.92 per dollar. The top losers included Tata Consultancy Services, HCL Tech, Just Dial, Tech Mahindra and Wipro.
Nifty Metal fell over 1.25% dragged mainly by stocks such as JSW Steel, SAIL, Coal India and Hindustan Copper, which fell between 2.25% and 3.25% today.
Oil & gas stocks underwent selling pressure, the top losers were GAIL India, HPCL, BPCL, Power Grid and Reliance Industries.
Nifty Auto shed three-fourth of percent dragged by Exide Industries, Ashok Leyland, Bosch, MRF, Hero MotoCorp, Maruti Suzuki and TVS Motor Company.
NIFTY CHART
NIFTY IT STOCKS
NIFTY IT STOCKS
NIFTY METAL STOCKS
Nifty Metal stocks
SBI reports loan divergence of Rs 11,932 cr for FY19
Public sector bank State Bank of India on Tuesday reported about Rs 12,000 crore divergence in their bad loans for the last fiscal. As per the assessment done by the RBI, the gross NPA of the the SBI was 11,932 crore more at Rs 1,84,682 as against Rs 1,72,750 reported by the bank for 2018-19, SBI said in a regulatory filing. SBI stock was down Rs 1.25 or 0.40% to Rs 315.45 on the NSE today
Indices drop on slowdown concerns
Key stock indices fell sharply following concerns over deepening slowdown in the economy coupled with weak US market. The Dow Jones ended 105 points lower overnight. The third quarter GDP is unlikely to be better, considering the weakness across major sectors.
Industry experts expect the GDP growth could go well below 5 per cent as there seems to be no major improvement in earnings this year.
The benchmark BSE Sensex met with losses and was trading lower by 245.42 points, or 0.60 per cent, to 40,242.01.
In a similar movement, the broader NSE Nifty declined 84.20 points, or 0.70 per cent, to 11,853.30.
Nifty Auto chart
NIfty Auto chart
NIFTY IT stocks
Nifty IT stocks
Nifty index
Nifty chart
Fitch revises outlook on Cairn India to negative; Affirms 'BB-' Rating
Fitch Ratings has revised its outlook on Cairn India Holdings Limited's (CIHL) to Negative from stable and affirmed the Long-Term Issuer Default Rating (IDR) of 'BB-'.
The revision reflects Fitch's assessment that the consolidated credit profile of CIHL's owner, Vedanta Limited is expected to weaken in the financial year ending March 2020 (FY2020) and FY22, due to falling demand.
This has reduced CIHL's headroom at the current rating level. Cairn's rating is aligned with the consolidated credit profile of Vedanta Ltd, which owns 100% of Cairn India, reflecting their strong linkages in line with Fitch's parent and subsidiary linkage criteria. The company expects the profitability and volumes improvement mainly from their aluminium and zinc business segments, to result in a better financial metrics as compared to Fitch's expectations. If the company is successful in demonstrating a better performance, Fitch may revise the outlook back to stable. However further sustained weakness in the company's consolidated financial metrics over the coming quarters, could result in a downward rating action. Cairn's standalone Credit Profile of 'b+' is driven by its concentrated and small scale of operations, which are counterbalanced by its low cost position and strong standalone financial profile.
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Cairn Oil & Gas gets 10 year extension for Ravva Production Sharing Contract
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Cairn India Holdings encashes investment in Anglo American
CIHL and a holding company of Anglo American have agreed to unwind, entirely, the structured investment they had entered into in December 2018
JB Chemicals announces buyback plan; shares climb 6%
J B Chemicals & Pharmaceuticals shares rose nearly 6% today on the back of announcement by the company that it would buy back shares from eligible shareholders at a price of Rs 440.
Nifty 50 December Futures (11,935)
The December futures of the Nifty 50 index opened the session at 11,972 versus its previous close of 11,966. It has been declining after making an intraday high of 11,976. Currently trading at 11,935, it is testing one of the key support at 11,930.
Bank Nifty chart
Nifty Chart December 10, 2019 12.20 pm
Weaker economy, asset quality strains to trigger consolidation in NBFC industry: Fitch
Fitch Ratings on Tuesday said India's weaker macroeconomic backdrop is likely to add to the existing funding, growth and asset-quality strains weighing on the non-bank financial company (NBFC) industry as a whole
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NBFC crisis needs to be fixed to drive consumption: Gautam Singhania
Besides, sentiment also has to improve for consumers to spend, says the Raymond Chairman in an interactionRelated Stories
NBFC resolution: New IBC rules will bring some order
A speedy resolution, which hasn’t been a hallmark of IBC cases so far, will be critical for financial firms
Asian Indices Table December 10, 2019 11.55 am IST - Reuters
Broker's Call
Geojit Financial Services
Havells India Ltd
Rating: Reduce
CMP: Rs. 650
Target Price: Rs. 625
Havell's Q2FY20 EBITDA margins declined by 150bps, on account of weak product mix, margin erosion in Lloyd business and higher cost. But profitability was flat YoY led by tax cut. The current demand situation continues to be weak on account of tight liquidity scenario and slowdown in real estate business.
Havellis trading at average one-year forward P/E of 46x, which is 18% premium to its 5-year historical average.
Given the near-term impact on margin and premium valuation, the brokerage firm reiterates to Reduce with a target price of Rs 625 in the short-term.
Advances and Declines on BSE
Shaily Engineering Plastics shares decline 4% on GST search in Gujarat unit
Shaily Engineering Plastics stock slumped after GST search at the premises of the company. The stock declined Rs 23 or 4% to Rs 555.10 on the BSE today. The company has informed the BSE that there was a search at its Rania plant in Gujarat by Goods and Services Tax (GST) authorities and the same has ended.
Broker's Call
ICICI SECURITIES
Intra-day future recommendation
Sell Nifty in the range of 11990-12012
Sell Bank Nifty in the range of 31500-31550
Buy Century Textiles in the range of | 498.00-499.00
Sell Bata India in the range of | 1687.00-1688.00
Rupee rises 10 paise to 70.94 against US dollar in early trade
The rupee appreciated by 10 paise to 70.94 against the US dollar in early trade on Tuesday as easing crude prices and sustained foreign fund inflows strengthened investor sentiments.
At the interbank foreign exchange the rupee opened at 70.98, then gathered momentum and touched 70.94 against the US dollar, registering a rise of 10 paise over its previous close.
HIghest Open Interest in stock futures (Yesterday's closing prices)
Source: Dalmiia Securities
Daily Rupee call: Wait for a pullback to buy the rupee
The rupee (INR) appreciated on Monday as it closed at 71.05 versus the previous close of 71.2 against the dollar (USD). It is currently facing an important resistance at 71.
HDFC plans to buy out arm Credila Fin
The Housing Development Finance Corporation (HDFC) on Monday said it is planning to acquire 1.14 crore equity shares of ₹10 each of its subsidiary HDFC Credila Financial Services Pvt Ltd for a total consideration not exceeding ₹395 crore from other promoters — Ajay Bohora and Anil Bohora.
Equity inflows into mutual funds dip to 41-month low
Inflows into equity schemes of mutual funds plunged 78 per cent to a 41-month low in November to ₹1,312 crore against the ₹6,026 crore logged in October, despite the markets hitting a new high.
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Why gold MFs outshine gold accumulation plans
They enable systematic investment similar to gold- accumulation plans and are relatively risk-freeNifty 50 December Futures: Trading call
The Nifty futures contract is trading between two key levels of 11,976 and 12,000. Since the contract is exhibiting certain bearish indications, traders are recommended to initiate fresh long positions only above 12,000 with a tight stop-loss.
Opening Bell
Indices slipped marginally after opening higher taking cues from sluggish Asian market amid overnight US market. The Down Jones ended 105 points lower overnight.
The benchmark BSE Sensex met with losses and was trading lower by 50.35 points, or 0.12 per cent, to 40,437.08.
In a similar movement, the broader NSE Nifty declined 12.15 points, or 0.09 per cent, to 11,925.35.
Sensex stocks
Jhunjhunwala likely to withdraw from YES Bank's preferential share offer
Fresh concerns seem to be emerging about private sector lender YES Bank’s capital-raising plans as billionaire investor Rakesh Jhunjhunwala is likely to withdraw plans to invest $25 million in the lender through his wife Rekha Jhunjhunwala’s family office.
Asian shares edge lower as investors await tariff deadline
Asian equity markets were a tad lower on Tuesday as investors refrained from making major bets before December 15, when the next round of United States (US) tariffs on Chinese imports is due to take effect.
A Chinese Commerce Ministry official said on Monday that Beijing hopes to make a trade deal with Washington as soon as possible before new US tariffs are due to kick in this weekend.
MSCI's broadest index of Asia-Pacific shares outside Japan was down only 0.04 per cent as the Asian trading day began on Tuesday.
9.10 am
Sensex stocks
Dhampur Sugar Mills (₹193.5)
Investors with a short-term perspective can buy the stock of Dhampur Sugar Mills at current levels.
Investors lay siege to SEBI office, demand Karvy-like action against BMA Wealth
On Monday, SEBI’s office came under siege as a crowd of 40-50 stock market investors blocked the main entrance of the regulator’s BKC office building. The commotion led to police being called to guard the office, sources said.
The investors said they were protesting against SEBI’s slow course of action against a broker BMA Wealth.
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SAT halts NSDL from transferring more shares to Karvy clients
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