Sensex drops 297 points; Nifty ends at 12,126

Closing bell

Benchmark Sensex plunged 297 points on Thursday, led by losses in index heavyweights Reliance Industries and HDFC Bank amid expiry of December derivatives contracts.

After falling 328.37 points during the day, the 30-share BSE Sensex ended 297.50 points, or 0.72 per cent, lower at 41,163.76. It hit an intra-day low of 41,132.89.

Similarly, the broader NSE Nifty closed 88 points, or 0.72 per cent, down at 12,126.55.

Bharti Airtel was the top loser in the Sensex pack, dropping 2.23 per cent, followed by Reliance Industries, L&T, Sun Pharma, HDFC Bank, Maruti, Titan and Kotak Bank.

On the other hand, ONGC, NTPC, Tata Steel, Bajaj Finance and M&M rose up to 1.63 per cent.

According to traders, market turned volatile on expiry of December futures and options (F&O) contracts.

Further, investor participation has also thinned on account of year-end holidays in domestic and global markets, they said.

Bourses in Shanghai, Tokyo and Seoul ended on a positive note.

On the currency front, the rupee was flat against the US dollar at 71.27 (intra-day).

Brent futures, the global oil benchmark, advanced 0.33 per cent to USD 67.42 per barrel. - PTI

Here are the top Nifty 50 top 10 gainers :

and Nifty 50 top 10 losers:

Deal street gets deserted in 2019 as debt obligations cast shadow over M&As

Merger and acquisitions seem to have become a big casualty of corporates’ debt distress as India Inc learnt it the hard way in 2019 that their first priority was to meet their loan repayment obligations and suitors from abroad also seemed reluctant in wooing distressed targets for any matchmaking.

This has led to a mostly muted scene on India’s corporate deal street this year, after a blockbuster 2018, while economic slowdown fears further came in the way for any significant merger and acquisition deals.

But, experts are hopeful that the scenario might change in the New Year, provided the economy rebounds from its lows. Read more on this .

Afternoon Markets: Sensex fall 200 point

The benchmark indices have continued to stay red for the afternoon session. BSE Sensex has dropped 211.45 points or 0.51 per cent, thus keeping at 41,246.72, at 3.00 pm.

The NSE Nifty 50 was at 12,151.10, lower by 63.45 points or 0.52 per cent.

Automobile: Firmly in the grip of a slowdown

File photo

The year 2019 was one of the worst years for the automobile industry with falling sales and piling inventory.

The overall slowdown in the economy, liquidity crunch, the crisis in the non-banking finance companies (NBFC) sector, the increase in third party insurance and road tax, and the consequent hike in the cost of acquisition, uncertainty arising out of inventory liquidation prior to the BS-VI transition and expectations of a possible GST reduction were the primary reasons for the prolonged slowdown this year, according to experts.

Passenger vehicle sales declined by 17.98 per cent in April-November 2019 over the same period last year, according to the Society of Indian Automobile Manufacturers (SIAM). The industry is expected to close the year with a drop in wholesale dispatches of 13-17 per cent vis-à-vis 2018, Sugato Sen, Deputy Director-General, SIAM, told  BusinessLine . While passenger vehicles and two-wheelers will decline by 13-17 per cent, commercial vehicles will go down by 22-27 per cent overall, with heavy vehicles falling by more than 40 per cent, he added. Read more about the slowdown in the auto sector here

Currently the S&P BSE Auto sectoral indice a fall of  6.88 points or 0.04 per cent.

Here is the NSE Nifty 50 sectoral indices

BSE Sectoral Indice

S&P BSE Telecom sectoral indice lost the maximum with change percentage at 0.88. BSE Capital goods and Oil & Gas are next in line.

S&P BSE metal sector recorded 0.4 per cent gain, making it the top sector in the positive zone. Only three more sectors are hovering in the positive teritory.

Indices fall; Sensex slips 150 points

Benchmark indices are on a constant fall. The 30-stock BSE Sensex trades at 41,301.70, thus slipping 159.56 points or 0.38 per cent. About 1289 shares advanced, 1089 decline and 160 remained unchanged.

The Nifty 50 stood at 12,168.10, shedding 46.45 points or 0.38 per cent. Around 993 shares advances, 744 declined and 401 remained unchanged.

Piramal Enterprises to raise ₹2,750 cr by issuing bonds

Piramal Enterprises on Wednesday said it will raise up to ₹2,750 crore by issuing bonds on private placement basis.

“A meeting of the Administrative Committee of the Board of Directors of the Company will be held on Saturday, December 28, 2019, to consider and approve the issue of secured non-convertible debentures on private placement basis amounting up to ₹2,750 crore,” it said in a regulatory filing.

Piramal Enterprises said the money can be raised in one or more tranches from time to time. - PTI

Nifty call: Nifty 50 December Futures (12,203)

The Nifty spot and the Sensex spot index are trading marginally lower. Both the indices are down by nearly 0.2 per cent each and are exhibiting bearish bias. The market breadth of the Nifty 50 index is showing bearish bias as the advance-decline ratio is at 21-29.

The December futures of the Nifty 50 index is currently trading around an important level of 12,200. Though the contract is trading with a negative bias, 12,200 can act as a support, potentially arresting further declines. Thus, traders are recommended to initiate fresh short positions if the contract slips below 12,200 and place stop loss at 12,235.

For more read here

Strategy: Sell below 12,200 with stop loss at 12,235

Supports: 12,175 and 12,155

Resistances : 12,230 and 12,250

Daily Rupee call: Sell rupee with stop loss at 71.05

The Rupee (INR), after trading in a tight range between 71.1 and 71.2, closed at 71.27 against the dollar (USD) on Tuesday. Thus, the domestic currency has closed below the support at 71.2 on daily basis, instilling bearish bias. Read more here

Trade strategy:

From trading perspective, one can take a bearish view as rupee has closed below the support at 71.2. Hence, traders are recommended to initiate fresh rupee shorts on rallies with 71.05 as stop loss.

Supports: 71.4 and 71.6

Resistances: 71.2 and 71

Sensex slips 100 points

At 11.53 am, the S&P BSE Sensex slipped 102.13 points or 0.25 per cent, thus trading at 41,359.13.

While Nifty 50 was at 12,185.30, that is 29.25 points or 0.24 per cent in red.

Broker's call: RITES (Buy)

CMP: ₹281.85

Target: ₹328

Key takeaways: a) RITES standalone order book stand at ₹5,833 crore (about 3x FY19 revenue). Management expect pick up in H2 would help them end FY20 with over ₹8000 cr order book. Order book is expected to grow by +17 per cent in FY20 over FY19 which provides strong revenue visibility for next 2-3 years. Read more about the technicals here

Steel prices to go up by ₹1,000 a tonne in Jan

File Photo

Steel prices are set to go up for the third consecutive month in January following revival in domestic demand and firm price trend globally. Just like in many other metals, steel companies in India take price signal from global markets.

Despite the prices going up in last two months, demand has been holding strong in both automobile and infrastructure sectors on restocking by dealers. Following this, steel companies have intimated that Hot-rolled coil prices will be increased to Rs 700-1,000 a tonne in January, said a stockist. Read more about the steel prices here

I-T searches at Dishman Carbogen Amcis offices

Dishman Carbogen Amcis Ltd on Thursday said Income Tax Department has conducted search at its offices and manufacturing sites and the search operation was concluded on December 25. Read more about it here

The shares of Dishman Carbogen Amcis Ltd were trading at Rs 77.90, up 8.04 per cent on BSE in morning trade.

Sensex drops 46 points, Nifty below 12,200

At 10.55 am, the S&P BSE Sensex was trading at 41,414.36, 46.90 points or 0.11 per cent lower.

While Nifty 50 was at 12,197.70, that is 16.85 points or 0.14 per cent in red.

The gainers in the 30-stock pack BSE Sensex were Tata steel at Rs469.30, up by 1.38 per cent, and Mahindra and Mahindra at Rs.533.75. Others in the list were Asian Paints, HDFC, Hero Moto. The losers in the pack were Axis Bank, TCS, Power Grid, Sun pharma.

In the NSE Nifty50 pack, JSW steel was in green at Rs 469.55 with 1.41 per cent jump. Others in the gainers list were Hindalco Industries Ltd, Vedanta Ltd and Tech Mahindra Ltd.

In the losers end were Indian Oil Corporation Ltd at Rs.124.90 with a drop of 1.96 per cent.

Yes Bank, Coal India Ltd, Dr Reddy and ONGC were also in the losing end.

Edelweiss MF raises ₹12,400 cr via Bharat Bond NFO

Edelweiss Asset Management has raised ₹12,395 crore through the first-ever corporate bond exchange traded fund Bharat Bond new fund offer.

The initial NFO issue size of ₹7,000 crore was oversubscribed nearly 1.8 times. The 3-year category received applications for ₹6,982 crore, an oversubscription of 2.3 times and the 10-year category received ₹5,413 crore, which was oversubscribed 1.4 times.

All the subscription will be retained in both the categories to accommodate the demand. With about 55,000 applications received, Edelweiss Mutual Fund’s Bharat Bond NFO witnessed wide retail participation with strong support from digital channels.

Read more about the fund raised here

MOIL buyback offer opens today

The ₹308-crore buyback offer from MOIL Ltd will open for subscription on Thursday, December 26, and end on January 8.

The PSU major is offering ₹152 a share to buy back about 2.03 crore shares, representing 7.87 per cent of the equity capital, from all the existing shareholders on a proportionate basis through the tender offer route. That means, shareholders whose names had appeared on the company’s book on November 27 (record date) are alone eligible to participate in the buyback.

Shares listless ahead of derivatives expiry; Coffee Day, Dishman jump

Shares changed a little on Thursday, ahead of the expiry of December derivative contracts and in the absence of new catalysts to propel large-cap stocks which have pushed markets up 12 per cent in 2019.

The NSE Nifty 50 index was down 0.01% at 12,213.20 by 9.55 am, while the S&P BSE Sensex was flat at 41,461.25.

The markets have moved little during a truncated trading week due to the Christmas holiday, with the sharpest move coming on Tuesday - when markets fell about 0.4 per cent - spurred by profit-booking.

“If you look at the top 7-8 stocks ... the news flow isn't that great to stimulate prices further higher,” said Saurabh Jain, Assistant Vice President at SMC Global Securities Ltd in New Delhi. “Some consolidation or correction is inevitable.”

Among global equities, European stocks on Tuesday saw fresh record gains as did the Nasdaq on Wall Street in a year-end rally spurred by hopes of a US-Sino Phase 1 trade deal.

Meanwhile, the government is unlikely to complete the privatization of carrier Air India Ltd, refiner Bharat Petroleum Corp Ltd (BPCL) and Container Corp of India Ltd by end-March, leaving an up to $7 billion hole in its budget, the Mint newspaper reported on Thursday.

Shares in BPCL were up nearly 1 per cent, while those in Container Corp were down 0.4 per cent.

Among other individual stocks, Coffee Day Enterprises Ltd was up 3 per cent after a media report that KKR and Apax Partners were in the lead to buy a significant stake in the coffee chain owner.

Having fallen roughly 40 per cent over the past week, shares in Dishman Carbogen Amcis Ltd climbed 10 per cent.

The pharmaceutical services firm, whose offices and manufacturing plants were searched by income tax officials, said the search had concluded on Wednesday. - Reuters

Rupee rises against dollar in early trade

The Indian rupee opened on a positive note and rose 5 paise to 71.22 against the U S dollar in early trade on Thursday as steady rise in crude oil prices weighed on the investor community.

At the interbank foreign exchange, the rupee opened at 71.26 then rose to 71.22 against the dollar, showing a rise of 5 paise over its previous closing. on Tuesday, the rupee had closed at 71.27 against the dollar. Forex market was closed on Wednesday on account of Christmas.

Forex traders said rise in crude oil prices, muted opening of domestic equities and foreign fund outflows weighed on the domestic unit. Meanwhile, Brent crude futures, the global oil benchmark, rose 0.42 per cent to USD 67.48 per barrel. - PTI

Read more here

Dollar ticks higher versus yen as confidence stays intact

The dollar edged up slightly against the yen on Thursday while risk-sensitive currencies held firm on hopes of easing trade tensions between the United States and China and a pick up in the global growth.

Against the yen, the dollar was 0.2 per cent higher at 109.53 yen and within a striking distance of a six-month high of 109.73 touched earlier this month. The euro barely moved at $1.10905.

Read more about the forex here

Sensex trades 2.69 points higher

At 9.53 am, the S&P BSE Sensex was trading at 41,463.95, 2.69 points or 0.01% up. The top gainer in the 30-stock pack was Tata steel at Rs468.80, up by 1.25%. Mahindra and mahindra, HDFC and Asian Paints remain in focus for gainers.

Here is the chart of the losers and gainers of Sensex: 

Sensex, Nifty turn volatile ahead of F&O expiry

Equity benchmarks BSE Sensex and NSE Nifty started on a volatile note on Thursday ahead of the expiry of December derivatives contracts amid thin trade in global equities due to year-end holidays.

After opening on a positive note, the 30-share BSE index was trading 47.67 points or 0.11 per cent higher at 41,413.59 in morning session. Similarly, the broader NSE Nifty slipped 12.20 points or 0.10 per cent to 12,202.35.

Bharti Airtel was the top loser in the Sensex pack, shedding up to 0.73 per cent, followed by Bajaj Auto, ONGC, RIL, Sun Pharma, Axis Bank, PowerGrid, Infosys and HDFC Bank.

On the other hand, Mahindra and Mahindra was the top gainer, rising up to 1.18 per cent. Tata Steel, Nestle, IndusInd Bank, SBI, Bajaj Finance and HCL Tech were also trading in the green.

The market remained shut on Wednesday on account of Christmas.

In the previous session, the 30-share gauge ended 181.40 points, or 0.44 per cent, lower at 41,461.26. Similarly, the Nifty closed 48.20 points, or 0.39 per cent, down at 12,214.55.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 114.38 crore, and domestic institutional investors offloaded shares worth Rs 345.22 crore on Tuesday, data available with stock exchange showed.

According to traders, market has turned volatile ahead of the expiry of December futures and options (F&O) contracts.

Further, with investor participation turning thin on account of year-end holidays in domestic and global markets, investors are awaiting directional cues, they said.

Bourses in Shanghai, Tokyo and Seoul were trading on a positive note.

Brent futures, the global oil benchmark, rose 0.30 per cent to $67.47 per barrel.

Meanwhile, the rupee appreciated 3 paise to 71.23 against the US dollar in morning session. - PTI

Asian shares trade mixed, after 9 per cent gain for quarter

Asian stocks saw another quiet year-end session on Thursday, sitting on an advance of almost 9 per cent for the quarter thanks to ebbing concerns about US-China trade tensions and expectations of a global economic pickup in 2020.

Shares ticked higher in Tokyo and Shanghai, and were flat in Seoul, without a cue from Wall Street overnight given the Christmas holiday. Hong Kong and Sydney were still shut. US futures ticked higher along with 10-year Treasury yields, while the Japanese yen edged down.

Read more about the Asia shares here

Opening bell

It is flat start for the benchmark indices on Thursday with Nifty opened around 12,000 level.

At 09:20 am, the BSE Sensex is down 20.46 points at 41,440.80, while Nifty down 7.35 points at 12,207.20.

The top openers for the Nifty 50 were UPL, Nestle India and Mahindra & Mahindra Ltd. While the Bharti Infratel Ltd, Bharti Airtel Ltd, Zee Entertainment Enterprises Ltd started on a negative note.

Day Trading Guide

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹1289 • HDFC Bank

₹733 • Infosys

₹238 • ITC

₹126 • ONGC

₹1545 • Reliance Ind.

₹331 • SBI

₹2215 • TCS

12238 • Nifty 50 Futures

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Today's Stock Pick: Ramco Systems (₹164.3): Buy

We recommend a buy in the stocks of Ramco Systems at current levels. The stock gained 11.7 per cent accompanied by above average volume on Tuesday, decisively breaking above an immediate resistance at ₹150. Read our stock recommendation of Ramco Systems here

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