Sensex, Nifty end flat with negative bias; Auto, FMCG stocks drag

MSCI's broadest index of Asia-Pacific shares outside Japan was steady on Tuesday.

3.45 pm

Closing bell: Indian shares edged marginally lower on Monday, driven mostly by a surge in public sector banking stocks after the top court last week provided relief to lenders in a case related to a steel company and on hopes of more support from the government towards ailing sectors.

The finance minister said on Friday the government was discussing the issue around telecom companies. However, no final call had been taken yet.

This comes after two top mobile carriers warned last week that their ability to operate and make profits would depend on relief from the government.

The NSE Nifty 50 index ended down 0.01% at 11,894.25, while the S&P BSE Sensex was 0.18% lower at 40,284.19.

The Nifty public sector bank index was the top gainer, rising 1.43%. Bank of India led the rally with a rise of 3.10%.

The Sensex hit an intraday high of 40,542.40 and a low of 40,221.97. Similarly, the Nifty touched an intraday high of 11,946.20 and a low of 11,867.60. The market breadth was negative as 1,395 shares declined, against the advance of 1,169 shares, while 207 shares were unchanged.

Among NSE sectoral indices, metal index gained the most by 1.79 per cent, followed by PSU Bank 1.43 per cent, Pharma 1.18 per cent and Media 0.82 per cent.

Top five Nifty gainers were Bharti Airtel (+4.62%), Tata Steel (+4.41%), UPL (+3.71%), Hindalco (+3.33%) and BPCL (+2.75%), while the major losers were Yes Bank (-4.29%), Bajaj Auto (-1.96%), Britannia (-1.67%), M&M (-1.66%) and Hero MotoCorp (-1.55%).

3.27 pm

NSE facilitates primary subscription for retail investors in State Development Loan auctions

Leading bourse NSE on Monday said it has introduced facilitation of subscription in State Development Loans (SDLs) through its e-Gsec platform that will enable retail participation in securities issued by state governments.

The e-Gsec platform was launched by the National Stock Exchange (NSE) in April last year, to allow retail investors to invest in government securities and hold them in existing demat accounts.

SDLs are dated securities issued by state governments through normal auctions similar to the auctions conducted for dated securities issued by the central government.

The Reserve Bank of India (RBI) conducts auctions for such securities on a weekly basis where 10 per cent of the notified amount is allotted for eligible investors under the scheme for non-competitive bidding (NCB).

The interest on SDL is received at half-yearly intervals and the principal is repaid on the maturity date.

The exchange acts as facilitator in NCB route to aggregate the bids received from retail investors and submits a single bid to RBI. The exchange has been offering G-sec and T-bills issued by central government from April 2018 to facilitate retail participation in these securities.

3.25 pm

Tata Motors ties up with Lithium Urban for EV segment

Tata Motors on Monday said it has inked a pact with commercial EV fleet provider Lithium Urban Technologies to address mobility solutions across passenger, mass transit and freight segments. As part of the agreement, the auto major will supply 400 Tigor EV units to Lithium Urban by the end of the current fiscal, Tata Motors said in a statement.

The partnership also entails supply of 100 more electric vehicles, like the upcoming Nexon EV, from the company’s stable, it added.

3.20 pm

Sectoral Indices at 3.20 pm

 

3 pm

USFDA pulls up Mylan for manufacturing violations at Andhra plant

American health regulator USFDA has pulled up Mylan Laboratories for violation of good manufacturing norms, including lapses in handling raw materials and issues related with cleaning of equipment, at its Andhra Pradesh-based manufacturing facility.

In a warning letter issued to the company’s CEO Heather Bresch, the US Food and Drug Administration (USFDA) said inspectors during May 27 to June 5, this year found significant deviations from standard manufacturing practices at the company’s Unit 8 in G Chodavaram village in Vizianagaram.

“This warning letter summarises significant deviations from current good manufacturing practice (CGMP) for active pharmaceutical ingredients (API),” the USFDA said.

2.53 pm

Ashiana Housing gets RERA registration for Jaipur project

Ashiana Housing on Monday annunced that it had obtained RERA registration (i.e. registration under the Real Estate Regulation and Development Act, 2016) of Phase 2 of “Ashiana Daksh” project in Jaipur.

The residential project has total saleable area of 7.04 lakh sq. ft consisting of 2 BHK and 3 BHK units and is located at Jagatpura, Jaipur.

2.49 pm

Growing participation of retail investors in equity markets may be a sign of flight from bank deposits: SBI report

As the Indian economy transcends to a lower interest rate regime, there could be a flight of bank deposits to the equity markets as evident from the increasing participation of retail investors from April 2019, albeit with some volatility, according to State Bank of India's research report EcoWrap. Click here to read more

2.40 pm

Early declaration of results indicate improving asset quality, says SBI

Early declaration of quarterly results by some of the large Indian banks could be an indicator of the improvement in asset quality cycle, according to State Bank of India’s research report EcoWrap. Read more here

2.30 pm

Metal shares in the green; Tata Steel up 3%

The Nifty Metal index was trading 1.83 per cent up at 2,544.50 around 2.30 pm.

Shares of Tata Steel (up 3.79 per cent), Hindalco (up 2.90 per cent), SAIL (up 2.34 per cent), JSW Steel (up 2.24 per cent) and Jindal Steel (up 2.06 per cent) were trading higher.

Hindustan Zinc (up 1.78 per cent), Vedanta (up 1.30 per cent), MOIL (up 1.25 per cent), Vedanta (up 1.23 per cent) and APL Apollo Tubes (up 0.94 per cent) too were trading with gains.

2 pm

Telecom’s linkage to other sectors will emerge stronger with 5G, says DoT Secretary

Telecom is a “critical” sector with direct impact on economic growth, employment and other crucial domains like healthcare and agriculture, and the advent of 5G will strengthen this connect, DoT Secretary Anshu Prakash said on Monday.

Addressing the ASEAN-TRAI program on ‘capacity building and sharing of best practices in policy regulation and development’, Prakash said the sector is also playing a major role in empowering citizens, contributing to better governance and enhancing transparency. “Telecom is critical, it is a core infrastructure sector with direct impact on economic growth, on employment and on other sectors because other sectors ride on telecom. Digital connectivity is an integral part...be it finance, agriculture, healthcare, and with the advent of 5G this linkage will certainly emerge stronger,” Prakash said.

 

 

1.02 pm

Nifty call: Tread with caution as futures contract seems to consolidate

The November futures of the Nifty 50 index seems to be in a consolidation phase after a good rally that began in the first week of October. The key level within which the contract is trading are 11,835 and 12,070. The 21-day moving average is at 11,845, which along with 11,835 could act as a support band. Click here to read the full technicals

12.53 pm

Pharma stocks advance; Glenmark surges over 15%

The pharmaceutical stocks were trending higher in Monday's noon session with the Nifty Pharma index up 1.35 per cent.

The shares of Glenmark Pharmaceuticals (up 15.12 per cent), Aurobindo Pharma (up 3.52 per cent), Sun Pharma (up 2.73 per cent) and Cadila Healthcare (up 2.71 per cent) were the top performers in the index.

Biocon (up 1.01 per cent), Lupin (up 1 per cent), Dr. Reddy's Laboratories (up 0.40 per cent) and Cipla (0.13 per cent) too were trading higher.

12.40 pm

Bharat Biotech’s contribution to help control typhoid in Pakistan

Pakistan is the first country in the world to introduce World Health Organisation-recommended typhoid conjugate vaccine (TCV) in its national immunisation program. Read the full story here

12.32 pm

Zydus announces second Phase 3 trial of Desidustat

Zydus Cadila on Monday announced the second Phase III DREAM-D trials of Desidustat, an Investigational New Drug targeted at treating anaemia in dialysis-dependent CKD patients.

Chronic kidney disease is a severe medical condition which is an unmet healthcare need involving gradual loss of functioning of kidneys, eventually leading to kidney failure. More than 200 million people worldwide are estimated to be living with chronic kidney disease.

In a chronic kidney disease condition, the kidneys fail to produce EPO, and this leads to anaemia. Desidustat is a novel, oral, HlF—PH inhibitor being developed for treating anaemia in CKD patients.

This Phase III DREAM—D study will be a multicenter (50- 60 sites in India), randomized, active-controlled clinical trial to evaluate the efficacy and safety of Desidustat versus Epoetin for the treatment of anaemia in patients with CKD who are on dialysis.

12.25 pm

ICICI Lombard, Fino Payments Bank to focus on affordable insurance solutions

ICICI Lombard and Fino Payments Bank are taking insurance deeper into the hinterlands of the country.

ICICI Lombard has been partnering with Fino to offer non-life insurance solutions to its customers since 2017. As part of this association, ICICI Lombard has introduced several innovative insurance solutions that complement Fina's technology-enabled platforms and harness its customer reach.

Some of these offerings include Hospicash that provide customers with the means to cover their loss of income, especially in the case of migrant workers, if they are hospitalized. Further, policies such as Family Floater allow access to quality healthcare in a cashless way and protect the family's savings in case of hospitalization.

The two brands now plan to take their association to the next level. To do this, they will focus on affordable insurance· solutions that will address the specific needs of Fina's customers spread across the country.

Continuing with their health insurance focus, ICICI Lombard and Fino are launching a Dengue and Malaria policy that covers treatments about these diseases up to Rs 10,000 at a premium as low as Rs. 49.

Targeting other significant segments such as 2- wheelers, they are introducing comprehensive insurance for bikes and scooters, thereby giving Fina's customers access to IClCl Lombard's range of motor insurance solutions at affordable rates.

12.15 pm

BHEL commissions 2 more pumping units at Kaleshwaram lift irrigation scheme

Bharat Heavy Electricals Limited (BHEL) has commissioned two more pumping units each at Package-6 (7x116 MW) and Package-8 (7x139 MW) of Kaleshwaram Lift  Irrigation Scheme.

Notably, with this, BHEL has successfully commissioned all 14 pumping units of these packages within a record period of six months and well within the scheduled time. These are huge size pump sets with each pump designed to lift 89 cumecs of water against a head of 100 to 125 metres.

Kaleshwaram is a greenfield irrigation project. It is being developed by the Irrigation & CAD (I&CAD) department of the Government of Telangana. While Package 6 is located in Peddapalli district,

Package 8 is located in Karimnagar district of Telangana. In LIS Package 6, water shall be lifted from Sripada Yellampalli reservoir to Medaram reservoir, and in Package 8, water shall be lifted from discharge of Package 7 (near Ragampet Village) to Mid Manair reservoir.

BHEL's scope in the project comprises Electrical & Mechanical (E&M) works, including design, manufacture, supply and supervision of erection & commissioning of these Vertical Pump-Motor sets along with associated auxiliaries in each package. The equipment has been supplied from BHEL's manufacturing units at Bhopal, Rudrapur, Bengaluru and Jhansi, while the supervision of erection and commissioning at the site was carried out by the company's Power Sector Southern Region division, Chennai.

The share price are trading at Rs 53.85  apiece, down per cent at Monday's noon trade.

12.05 pm

Inditrade Capital sees sharp growth in digital lending

Inditrade Capital, a digitally-driven lending non-banking finance company, expects its agriculture and micro-finance business to double this year given the general liquidity concern in the industry.

The company is looking to double its agriculture commodity and micro-finance book to Rs 800 crore this fiscal. Read the full story here

12 noon

HIL shares up 6% on capacity additions at Telangana plant

The shares of HIL Ltd, a flagship company of the CK Birla Group, has risen over 6 per cent on Monday. At 11.45 am, the shares are up to ₹71.85 apiece to trade at ₹1,251.

On Friday, the company had announced adding additional capacities (5,250 tpa). It commenced the production of its CpVC, UpVC and SWR (soil, waste & rain) pipes at Thimmapur, Telangana.

This is in line with the company's intention to expand the plumbing solutions business with an extended portfolio.

HIL continues to diversify and invest from its traditional lines of business and expects strong traction in the piping, flooring and green roofing solutions, the company said.

11.50 am

HIL Ltd betting big on expanding product lines

HIL has added additional capacities (5,250 tpa) and commenced the production of its CpVC, UpVC and SWR (soil, waste & rain) pipes at Thimmapur, Telangana. This is in line with the company's intention to expand the plumbing solutions business with an extended portfolio. HIL continues to diversify and invest from its traditional lines of business and expects healthy traction in the piping solutions, green roofing solutions and flooring solutions segments, the company said.

11.40 am

Morgan Stanley sees US underperforming in 2020 across markets

Morgan Stanley predicted that American equities and corporate bonds will underperform peers next year, while the dollar weakens as growth outside the U.S. picks up.

We see the biggest potential upside in markets with a clearer path to achievable earnings growth (Japan and EM) or scope for some multiple re-rating on falling political risks (Europe), strategists including Andrew Sheets, Michael Wilson and Matthew Hornbach wrote in a yearly outlook dated Nov. 17, with regard to stocks.

11.30 am

Shree Cement: Why it is a good long-term bet

Prolonged project delays and funding issues have weighed on the infrastructure and construction activities in the country. While there are growing concerns over the economic slowdown, the Centre’s measures to open up the clogs in funding channels and its thrust on reviving the real- estate sector should improve the economic activities over the medium term, though near-term hiccups could persist. Click here to read the stock fundamentals here

11 am

How have steel firms acquired under IBC fared?

While delays in the resolutions under the Insolvency and Bankruptcy Code (IBC) are hurting banks, successful cases in the steel sector (Essar Steel being the latest) are lending some comfort. Tata Steel taking over Bhushan Steel, JSW Steel acquiring Monnet Ispat and Vedanta buying Electrosteel Steels are instances of early success stories under IBC, offering decent recoveries to lenders. Read more on the stock fundamentals here

10.45 am

Stock Fundamentals: State-run oil companies take a knock

Weak refining margins, subdued volumes and inventory losses took a toll on the performance of the three public sector oil marketing companies (OMCs) — Indian Oil, BPCL and HPCL — in the recent September 2019 quarter. Click here to read the insight

10.32 am

How the economic slowdown has impacted India Inc

The economy decelerated in the first half of FY20, and the impact is evident in many industries. How did India Inc fare in this period? Will it be able to successfully navigate the maze? We look at the first-half performance of key sectors to find out what lies ahead for the rest of the fiscal. Click here to read the Big Story

10.20 am

Daily Rupee call: Initiate long only above 71.6 with tight stop-loss

The rupee (INR) closed at 71.79 against the dollar (USD) last week, recouping some of its losses. On Friday, the Indian currency opened higher at 71.8 versus its previous close at 71.97 and marked an intra-day high at 71.68 and ended the session with a quarter per cent gain.

Recovery henceforth will face resistance at 71.6, and above that level, the exchange rate of USD/INR can be expected to move towards 71.4. On the other hand, a decline from the current level will find strong support at 72. Read the technicals here

10.05 am

FII action: Foreign institutional investors offloaded shares worth Rs 1,008.37 crore in the capital market in the previous session, while domestic institutional investors purchased equities worth Rs 537.74 crore, data available with stock exchange showed.

10 am

Haldiram's revised offer: Will it attract Kwality?

The National Company Law Tribunal has directed the lenders of Kwality to reconsider the revised ₹145 crore offer made by Haldiram Snacks. Earlier, the latter had offered ₹142 crore to acquire the debt-ridden firm, but the lenders rejected that.

The Tribunal has also extended the Corporate Insolvency Resolution period by another three weeks and directed the Committee of Creditor to reconsider the enhanced offer. Kwality has a total debt of around ₹1,900 crore.

9.50 am

NTPC: Buy call option to bet on bounce back

The long and medium outlooks for NTPC (₹117.35) appear negative, as long as the stock rules below ₹145. In the short-term, the stock may show some resilient. While the immediate support appears at ₹113, a close below ₹105 has the potential to trigger a fresh fall on the stock. On the other hand, it finds immediate resistance at ₹123 and the next one at ₹135. We expect the stock to move in a range with an upward bias, given the current fall. Click here to read the futures perfect column

9.45 am

Sluggish price action in Tata Steel

 

The stock of Tata Steel was sluggish last week, and is hovering around the support at ₹395. Since it has extended the consolidation from the previous week, the recovery in the stock seems to be losing steam. Read more here

9.40 am

RIL might be resuming its uptrend

 

The stock of Reliance Industries gained in the latter part of last week after gradually declining during the week prior. This hints that the bullish trend might have resumed after the minor correction. Read the full technicals here

9.35 am

Infosys consolidates following an uptrend

 

The recovery in Infosys stock looks to have taken a pause as it appears to have entered a consolidation phase. The price has been oscillating between ₹690 and ₹725 for the past twoweeks. Until the stock continues to trade above ₹690, it is highly likely that it will resume the uptrend in coming days. Read more here

9.30 am

ITC turns bearish for the short term

 

The stock of ITC fell throughout last week and closedwith a loss, consecutive in the last five trading sessions. Read more on the technicals here

9.25 am

SBI struggles to appreciate further

 

After seeing a flat opening last week, the SBI stock broke out of the rangebetween ₹315 and ₹324. It made an intra-week low of ₹299.7, but bouncedup from that level as ₹300 is a strong support. Read the technicals here

 

9.20 am

 

Market opens: Equity benchmarks have started the day on a positive note, with the Nifty is trading above 11,900 level.

The Sensex is up 102.73 points at 40,459.42, while Nifty is up 26.70 points at 11,922.15. About 882 shares have advanced, 489 shares declined, and 492 shares are unchanged.

All other sectoral indices are trading in the green, led by PSU Bank index which gained 1.05 percent.

BPCL, Zee, SBI, Tata Motors and Sun Pharma are trading higher, while Bharti Infratel, GAIL, M&M, Asian Paints and Yes Bank have lost the most.

9.10 am

Parliament: Winter session likely to be stormy over Kashmir, economy

The three all-party meetings held here on Saturday and Sunday indicate that the Winter Session of Parliament, beginning in Monday, will be stormy over issues such as detention of leaders in Kashmir and the management of economy by the Centre. Read more here

9.03 am

Index outlook: Indices continue to face resistance

The past week was another lacklustre one for domestic benchmark indices. The Sensex and the Nifty remained in a narrow range, testing significant resistances. Hence, investors should tread with caution.

The mid- and small-cap indices witnessed correction, but are poised at key supports, indicating the possibility of a bounce-back in the near term. On the global front, geopolitical tensions continue to need a watch. Read more herex

Date | Time
Published on November 18, 2019