Markets Live: Sensex ends down by 107 points; RBI policy decision eyed

Closing bell

The S&P BSE Sensex ended the session down by 106.69 points or 0.29 per cent at 36,134.31 and the Nifty 50 down 14.25 points or 0.13 per cent at 10,869.50 due to weak global cues, rising crude oil prices, weakening of rupee to 70.68 and a cautious approach adopted by investors ahead of RBI monetary policy outcome on Wednesday.

Investors also remained cautious ahead of election results for five states next week, which is expected to set the tone for national elections scheduled for May 2019.

The Reserve Bank of India is likely to keep the repo rate unchanged at 6.50 per cent in its fifth bi-monthly monetary policy review on December 5 in the backdrop of retail inflation declining to a one-year low in October and the GDP growing at a slower-than-expected rate in the second quarter.

Oil prices extended bigger gains from the previous day amid expected OPEC-led supply cuts and a mandated reduction in Canadian output. Brent crude oil futures were up 51 cents, or 0.8 per cent, at $62.20 per barrel.

Top Nifty gainers were BPCL, ONGC, UPL, Indiabulls Housing Finance and IOC, while the major losers were Sun Pharma, M&M, Grasim, HDFC and State Bank of India.

Among NSE sectoral indices, IT, media, metal and pharma found investors' support, while PSU Bank, financial services, FMCG and Nifty Bank succumbed to selling pressure.

Rupee trading weak at 70.64

The rupee was trading weak at 70.64 due to a cautious approach adopted by traders ahead of RBI policy outcome on Wednesday. Rising crude oil prices also pulled the rupee down. Read more

LME copper falls to $6,281

Copper gave up some of Monday's gains, as doubts over China's demand growth and whether the country will be able to resolve its trade row with the United States within a 90-day timeframe came into focus. Three-month LME copper slipped as much as 0.9 per cent and was down 0.2 per cent at $6,281.50 a tonne. Read more

European markets

European shares traded in negative territory as investors started to question whether the truce agreed by the United States and China on their trade dispute would lead to a long-term deal. The pan-European STOXX 600 fell 0.3 per cent. Read more

TCS: IT’s the best - Buy

As the market runs into a potentially volatile and unpredictable phase with several state polls and the general elections scheduled over the next few months, investors would be better off taking conservative bets on established and solid names. TCS, with robust growth prospects and solid digital services focus appears to be the best bet from the IT top-tier pack. Read more

Gold hits over 1-month high

Gold prices rose on Tuesday, after hitting a more than one-month high earlier in the session, as the dollar stumbled after the United States and China agreed to a temporary truce in their trade conflict that rattled global markets. Spot gold climbed 0.4 per cent to $1,235.78 per ounce. Read more

Direct listing of Indian cos on foreign bourses

A high-level panel has proposed that SEBI must allow direct listing of Indian companies on overseas bourses and that of foreign firms on Indian exchanges.  It has recommended that the framework should allow listing only on specified stock exchanges in ‘Permissible Jurisdictions’. Read more

ACC: Consider a bull-call spread

The stock of ACC (₹1,485) has been moving sideways in a ₹1,250-1,650 range for over two years. Only a break from this range will set a clear trend for ACC. The stock finds an immediate resistance at ₹1,520 and a major one at ₹1,615. Read more

Chart Focus: VIP Industries (₹532.3): Buy

The stock of VIP Industries sky-rocketed 15.5 per cent last week, breaking above significant resistances at ₹480 and ₹500. This rally provides investors with a medium-term perspective, an opportunity to buy the stock at current levels. Read more

The Sensex was trading lower by 98.41 points or 0.27 per cent at 36,142.59 and the Nifty down 14.9 points or 0.14 per cent at 10,868.85 on selling pressure in realty, banking, FMCG and power stocks amid weak global cues. However, IT, TECk, oil & gas and infrastructure remained investors' favourite.

Top five Sensex gainers were ONGC, Infosys, Wipro, TCS and Bajaj Auto, while the major losers were Sun Pharma, Bharti Airtel, HDFC, M&M and NTPC.

Investors remained cautious ahead of RBI's policy decision on Wednesday and election results for five states next week, which is expected to set the tone for the national elections scheduled in May 2019.

“Our markets are underperforming, awaiting (state) election results next week. Other parameters like crude price and trade war concerns have turned positive,” said Neeraj Dewan, director, Quantum Securities.

LIC's open offer for IDBI Bank

IDBI Bank says that the government will not participate in LIC’s open offer to acquire 51 per cent stake in the bank. LIC’s open offer to purchase 26 per cent stake in IDBI Bank opened on December 3 and will close on December 14. Read more

Nifty 50 December Futures (10,918)

Nifty December futures contract opened the session on a negative note at 10,917 and started to decline. The contract continues to trade in the negative territory, experiencing selling pressure as well as profit-taking at higher levels.  Read more

IL&FS group entities face cash gap

After reviewing more than 165 entities within the IL&FS Group, the new Board of the debt-laden and cash-strapped IL&FS Group said it found close to 100 entities with operational cash gap till March 31, 2019. What this means is that these 100 entities could default on their debt obligations. Read more

GST collections drop below Rs 1 lakh cr

Ajay Bhushan Pandey

 

GST collections during the month were little over Rs 97,000 crore. However, the Government has set a target of Rs 1 to Rs 1.10 lakh crore GST collections during the current fiscal. Read more

50% increase in I-T returns filing

The Central Board of Direct Taxes has so far received 6.08 crore income-tax returns this year. This reflects a 50 per cent increase from last year, says its Chairman, Sushil Chandra. Read more

IL&FS board on cost-cutting drive

The new IL&FS board will take up manpower cost optimisation initiatives in two phases, bringing down the total manpower by approximately 65 per cent and wage cost by 50 per cent. Phase I will contemplate initiatives like salary rationalisation of employees, separation of superannuated consultants. Read more

Nifty gainers, losers

HDFC Bank and Housing Development Finance Corp were among the top percentage losers on the index, with shares falling 1.5 per cent and 3 per cent each, respectively.

Financial stocks dropped, with the Nifty Bank index down 0.6 per cent. Still, a weaker rupee boosted IT and pharma stocks. Shares of Infosys Ltd rose over 2.5 per cent.

Post noon trade

The Sensex was trading down 111.78 points or 0.31 per cent at 36,129.22 and the Nifty dow 24.65 points or 0.23 per cent at 10,859.10 on selling pressure in realty, metal, power and bank stocks amid weak global cues.

Investors remained cautious ahead of RBI policy outcome on Wednesday and election results for some states next week. Election results for Madhya Pradesh, Mizoram, Telangana, Rajasthan and Chhattisgarh are expected to set the tone for the national elections scheduled in May 2019.

Asian shares fell as a relief rally petered out amid rising doubts over whether China and the United States will be able to resolve trade differences. An inverted US yield curve also raised concerns about a possible recession.

“Our markets are underperforming, awaiting (state) election results next week. Other parameters like crude price and trade war concerns have turned positive,” said Neeraj Dewan, director, Quantum Securities.

The Reserve Bank of India policy cannot be hawkish in the inflation scenario and crude scenario, he added, referring to the monetary policy meeting on Wednesday. A Reuters poll of 70 economists predicted the RBI would hold its repo rate at 6.50 per cent.

Dollar weakens as US bonds fall

The dollar weakened as US Treasury yields fell to three-month lows, with investors fretting over a possible pause in the Federal Reserve's rate-hike cycle and portents of recession seen in a yield curve inversion. The US 10-year Treasury yield fell to 2.94 per cent on Tuesday, its lowest level since mid-September.  Read more

Brent crude jumps to $62/barrel

Oil prices extended strong gains from the previous day amid expected OPEC-led supply cuts and a mandated reduction in Canadian output. International Brent crude oil futures were up 40 cents, or 0.7 per cent, at $62.09 per barrel. Read more

Sun Pharma rebounds

Shares of Sun Pharmaceutical Industries Ltd recouped some of the previous session's losses. The stock gained as much as 2 per cent. Read more

China stocks fall

CSI300 index and the Shanghai Composite Index, which jumped almost 3 per cent on Monday, ended Tuesday morning flat, at 3,259.55 points and 2,655.96 points, respectively. In Hong Kong, the Hang Seng index and the Hong Kong China Enterprises Index dipped 0.3 per cent each, to 27,112.01 points, and 10,849.81 points, respectively. Read more

Rupee trading strong at 70.41

The rupee wiped off its losses and was trading strong at 70.41 on foreign fund inflows. However, dollar's strength against other currencies overseas and rising crude oil prices limited the rupee's gains. Read more

The S&P BSE Sensex was trading down 150.43 points or 0.42 per cent at 36,090.57 and the Nifty 50 down 30.85 points or 0.28 per cent at 10,852.90 on heavy selling in realty, power, FMCG and consumer durables stocks. However, IT, TECk, healthcare and oi & gas found investors' support.

Top five Sensex gainers were Infosys, Wipro, Bajaj Auto, TCS and ONGC, while the major losers were HDFC, M&M, NTPC, HDFC Bank and Bharti Airtel.

Investor sentiment was hit due to weak global cues, rising crude oil prices, weak rupee and heavy selling by domestic institutional investors. Investors were also in a wait-and-watch mode ahead of the outcome of the Reserve Bank of India’s fifth bimonthly monetary policy meeting for 2018-19.

The rupee depreciated 9 paise to 70.55 due to strengthening of dollar against other currencies overseas and higher crude oil prices.Brent crude, the international benchmark, was trading 1 per cent up at $62.31 per barrel.

On a net basis, foreign portfolio investors bought shares worth Rs 293.12 crore on Monday, while domestic institutional investors were net sellers to the tune of Rs 806.45 crore.

Profit-booking pulls Nikkei down

Japan's Nikkei fell as investors booked profits on cyclical stocks that rallied the day before, while falling US bond yields pressured financial companies. The Nikkei share average fell 0.7 per cent to 22,418.87. Read more

I-Sec rolls out eATM

Shilpa Kumar, MD and CEO, ICICI Securities Ltd

 

Retail investors facing a sudden liquidity problem will be able to access as much as ₹50,000 in a matter of just 30 minutes when they sell stocks on the BSE through a new facility launched by ICICI Securities. Read more

Traders oppose SEBI's move to extend agri-trading hours

Commodity market stakeholders have not taken kindly to SEBI's latest move to allow extended trading hours for agricultural commodities. While expressing fears of speculative practices, traders, farmers and analysts raising objections to the move terming it against the interest of domestic participants to favour international hedgers. Read more

MCX board meet on December 7

The MCX board will take up proposals to set up a technology company on the lines of one promoted by the NSE and the BSE and two separate trading platforms for spot bullion and energy. It is likely to approve setting up of two separate subsidiaries, one for the technology company and another for the spot exchange. Read more

The S&P BSE Sensex was trading lower by 82.79 points or 0.23 per cent at 36,158.21 and the Nifty 50 down 14.9 points or 0.14 per cent at 10,868.85 on weak global cues, rising crude oil prices, weak rupee and heavy selling by domestic institutional investors.

Investors were also in a wait-and-watch mode ahead of the outcome of the Reserve Bank of India’s fifth bimonthly monetary policy meeting for 2018-19.

The rupee depreciated 9 paise to 70.55 due to strengthening of dollar against other currencies overseas and higher crude oil prices.Brent crude, the international benchmark, was trading 1 per cent up at $62.31 per barrel.

On a net basis, foreign portfolio investors bought shares worth Rs 293.12 crore on Monday, while domestic institutional investors were net sellers to the tune of Rs 806.45 crore.

ETF assets to hit ₹1 lakh cr by end-FY19

The NSE expects assets under exchange-traded funds to increase to ₹1 lakh crore before end of this year, from ₹89,515 crore in October. The assets under management of domestic equity and debt ETFs grew at the rate of 28 per cent a year over the last 11 years. Read more

Why commodity transaction tax must go

If there is one tax that has done more harm than good in India, it is commodity transaction tax. Perhaps, this is because it was introduced for the wrong reason. While typically such taxes are levied to curb excessive speculation or to garner tax revenue, the Centre used CTT as a tool to make trading shift from commodity to equity futures. Read more

Asian markets

Asian shares fell in early trade as a relief rally sparked by a truce in the US-China trade war gave way to doubts on whether the two countries will be able to resolve their differences before a 90-day deadline.

MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.2 per cent as the Australian market gave up 0.5 per cent and Seoul's Kospi fell 0.6 per cent. Japan's Nikkei stock index was 0.3 per cent lower. Read more

Broker's call

CD Equisearch

Aegis Logistics (Buy)

CMP: ₹209.75

Target: ₹454

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Opening bell

The S&P BSE Sensex opened lower by 2.88 points at 36,238.12 against Monday's close of 36,241 and the Nifty50 down 0.5 point at 10,883.25 against 10,883.75.

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:

₹2113 • HDFC Bank

₹669 • Infosys

₹283 • ITC

₹142 • ONGC

₹1156 • Reliance Ind.

₹287 • SBI

₹1982 • TCS

10924 • Nifty 50 Futures

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

Today's stock pick

NIIT (₹85.9): Buy

Investors with a short-term horizon can buy the stock of NIIT at current levels. The stock jumped 8.4 per cent with good volume on Monday and has marginally closed above the key resistance level of ₹85. Read more

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