Closing bell

The S&P BSE Sensex ended the session higher by 190.29 points or 0.54 per cent at 35,150.01 and the Nifty 50 up 60.7 points or 0.58 per cent at 10,549.15 as investors shrugged off RBI Governor Urjit Patel’s shock exit from the RBI and dismissed jitters over state election results.

Top five Sensex gainers were YES Bank, Sun Pharma, Asian Paints, State Bank of India and Axis Bank, while the major losers were Hero MotoCorp, Bharti Airtel, HDFC Bank, ICICI Bank and Adani Ports.

Congress won three seats and leading in 99, while BJP won four seats and leading in 66 in Rajasthan Assembly polls. In Madhya Pradesh, Congress was leading in 110 seats, while BJP was ahead in 108 constituencies. In Chhattisgarh, Congress was leading in 58 seats, while the ruling BJP was a distant second at 17.

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RBI Governor Urjit Patel's resignation came after a month-long tussle over policy with the government that has raised concerns about the central bank's independence.

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The rupee recovered from intraday low of 72.42 after Finance Secretary A N Jha said the government was likely to make an announcement regarding Urjit Patel’s successor as RBI governor. It hovered in a range of 72.42 and 71.67 before quoting at 71.83, down 48 paise at 4 pm local time.

As per provisional data, foreign portfolio investors bought shares worth Rs 116.22 crore, while domestic institutional investors were net sellers to the tune of Rs 145.80 crore on Monday.

MCX gold

Gold prices fell Rs 205 to Rs 31,823 per 10 gram at the futures trade as speculators reduced their exposure, despite a firm trend in precious metal overseas. Read more

Election results

Congress won three seats and leading in 99, while BJP won four seats and leading in 66 in Rajasthan Assembly polls. In Madhya Pradesh, Congress was leading in 110 seats, while BJP was ahead in 108 constituencies. In Chhattisgarh, Congress was leading in 58 seats, while the ruling BJP was a distant second at 17. Click here to read more

Custodial services in commodity derivatives

The Securities and Exchange Board of India plans to allow custodial services in the commodity derivatives market to enable institutional participation. The proposal is likely to be discussed at SEBI board meeting on Wednesday. Read more

Rupee recovers from intraday low

The rupee recovered from intraday low of 72.42 on dollar selling by state-run banks on behalf of the RBI. It hovered in a range of 72.42 and 71.67 before quoting at 71.79, down 44 paise at 3 pm local time. Read more

Pre-close trade

European markets

European shares opened higher on Tuesday as a fresh whiff of optimism over the Sino-US trade dispute lifted sentiment after a burst of political risk and worries about global growth hit world markets during the previous session. The euro zone STOXXE index was up 0.7 per cent. Read more

HDFC Bank drops to over 2-week low

HDFC Bank's shares fell as much as 2.7 per cent to Rs 2,032, lowest since November 26. The stock has broken below a support at Rs 2,064.95, the 14.6 per cent Fibonacci retracement level of the uptrend from November 25, 2016 low to July 18, 2018 high (wave(3)). Read more

The Sensex was trading up by 72.99 points or 0.21 per cent at 35,032.71 and the Nifty up 25.25 points or 0.24 per cent at 10,513.70 on buying interest in consumer durables, healthcare, IT and FMCG stocks. However, oil & gas and realty stocks succumbed to selling pressure.

The Sensex recovered from intraday low of 34,426.29 and the Nifty from 10,336 as the election results in three states were not as poor for the ruling party as some expected, but anxiety about the central bank governor's resignation kept the sentiment subdued.

Click here to view the election results

Markets initially plunged in reaction to the Reserve Bank of India Governor Urjit Patel's unexpected resignation late on Monday, which shocked many investors.

“Patel's resignation bodes poorly for macroeconomic and financial stability in India,” Fitch Solutions Macro Research, a unit of Fitch Group, said in a note on Tuesday.

The rupee dropped 1.5 per cent to a one-month low of 72.4625 per dollar in early trade, but pared most losses to be 71.76 versus its previous close of 71.35. It touched the day's high of 71.68 with some dollar-selling intervention by state-run banks on behalf of the RBI also helping. The benchmark 10-year bond yield was down 7 basis points on the day at 7.52 per cent after initially rising as high as 7.71 per cent.

“Today's reaction by the markets is surprising to some, but it's a classic 'buy the rumour, sell the news' reaction. The news is already in the market price,” Sunil Sharma, chief investment officer at Sanctum Wealth Management, New Delhi.

Patel's resignation came after a month-long tussle over policy with the government that has raised concerns about the central bank's independence as a national election nears.

Government officials had been pressuring the RBI to allow some public sector banks laden with bad debt to lend more easily, and pushed for the central bank to hand over some of its surplus reserves to help fund the fiscal deficit.

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Elevated volatility?

“Though both parties have valid arguments on their points of view, the sudden resignation raises questions on whether the Indian government is trying to restrain public institutions and undermine RBIs independence,” said Anuja Munde, portfolio manager at Nikko Asset Management in Singapore.

“This resignation, along with political uncertainty, will keep the market volatility elevated in the run-up to the 2019 general elections.”

But after early tumble in the wake of Patel's resignation, and as election results from three Indian states came in, the market changed course. A senior trader at a large state-run bank said they had been buying debt as all negative news that had been feared has been delivered.

“Now we have to look forward. Markets are now being governed by macro fundamentals which look good as oil is stable and no rate hikes are expected any time soon.”

Ruling Bhartiya Janata Party could lose power in the three key states, four TV networks said, citing votecount leads, potentially handing Prime Minister Narendra Modi his biggest defeat since he took office in 2014, and months ahead of a general election.

Still, some analysts thought the results would be worse for Modi and BJP. “Uncertainty from the elections seem to be behind us now. If it had been a whitewash, with high margins of defeat for the BJP, then markets would have been under more pressure,” said S. Krishnakumar, chief investment officer for equities at Sundaram Asset Management in Chennai.

Announcement on Urjit Patel's successor likely today

The government is likely to make an announcement regarding Urjit Patel’s successor as Reserve Bank of India Governor later in the day.  RBI has been rendered headless following Patel’s unexpected resignation, with immediate effect, on Monday. Click here to read more

RBI's institutional capabilities 'very strong'

A day after Urjit Patel resigned as RBI Governor, Niti Aayog Vice-Chairman Rajiv Kumar on Tuesday said the central bank’s institutional capabilities are ‘very strong’ and it will do whatever is required for the markets and economy. Read more

HUL-GSK Consumer merger: A healthy deal

The merger of Glaxo SmithKline Consumer with Hindustan Unilever is a good deal for shareholders of both entities. Following the buyout of GSK Consumer by HUL for ₹31,700 crore, shareholders of the former will get 4.39 shares of HUL for every share held in GSK Consumer. Click here to read more

Bank of Baroda: Sell

Despite a good pick up in credit growth, healthy growth in core net interest income and fall in slippages in the latest September quarter, the road ahead for Bank of Baroda is not without challenges. Investors can trim their exposures to the stock, given the possible volatility in earnings in the coming quarters.  Read more

Lemon Tree Hotels: Buy

From its listing this April at ₹56 a share, the stock of Lemon Tree Hotels had a strong run, rallying more than 50 per cent to ₹85 in early August. But the market weakness over the past few months has seen the stock lose about 20 per cent since August; it now trades at ₹67 a share. This decline provides a good buying opportunity for investors with a long-term perspective. Read more

Benchmark indices turned green as there is only a marginal difference between the Congress and the BJP in Madhya Pradesh and Rajasthan. In Madhya Pradesh, the Congress was leading in 111 seats while the Bharatiya Janata Party was ahead in 106 constituencies, BSP 5, Bahujan Sangharsh Dal 1, Gondvana Gantantra Party 2, Samajwadi Party 2 and Independents at 3 seats. In Rajasthan, the Congress was leading in 100 seats leaving behind the BJP which was ahead in 78 seats. The CPM was leading in two seats, the BSP in two seats and independents in 12 seats and others on four seats.

Click here to view the election trends

The Sensex was trading higher by 104.88 points or 0.3 per cent at 35,064.60 and the Nifty up 40.6 points or 0.39 per cent at 10,529.05.

Top five Sensex gainers were YES Bank, Sun Pharma, Asian Paints, Axis Bank and State Bank of India, while the major losers were HDFC Bank, Adani Ports, Bharti Airtel, HDFC and ICICI Bank.

Domestic sentiment improved as rupee recovered from intraday low of 72.42 on dollar selling by state run banks on behalf of RBI. The domestic unit slumped to 72.42 on RBI Governor Urjit Patel's sudden resignation. It hovered in a range of 72.42 and 71.67 before quoting at 71.73 against the US dollar.

Urjit Patel's resigns: Click here to read the full article

Will Jaitley plump for a lower tariff regime?

Union Minister Arun Jaitley

 

Speculation is rife in commodity market circles about possible tax provisions (read concessions) the Finance Minister might make as part of the Vote on Account. Expectations, however unfounded they might appear to be, have gained credence on the basis of statements the FM made recently. Click here to read more

SEBI to seek board approval for overseas listing of cos

SEBI will approach its board for an in-principle approval of a proposal to list Indian companies on overseas platforms. A proposal by SEBI to let Indian companies list their equity on foreign exchanges and vice-versa requires amendments to various laws, including foreign exchange management, Companies Act, and approval from the RBI.  Click here to read more

Brent crude edges up to $61/barrel

Oil prices edged up after Libya's National Oil Company declared force majeure on exports from the El Sharara oilfield, which was seized at the weekend by a local militia group. International Brent crude oil futures were at $60.19 per barrel at 0336 GMT, up 19 cents, or 0.3 per cent, from their last close. Read more

Pound near 20-month low

The pound languished near 20-month lows against the dollar on Tuesday after British Prime Minister Theresa May postponed a crucial vote on her Brexit deal, rasing the risk of a chaotic exit from the European Union. Sterling crawled up 0.1 per cent to $1.2574 after slumping 1.3 per cent the previous day. Read more

Benchmark indices wiped off their early losses since there is a close fight between the BJP and Congress in Madhya Pradesh and Rajasthan. The Congress is leading in 112 seats and the BJP in 102 seats after second round of counting in the 230-member Madhya Pradesh Assembly polls. In Rajasthan, the Congress is leading in 93 seats, BJP 79 seats, CPM 2 seats, BSP 4 seats, and independents on 13 seats.

Click here to view the election trends

The Sensex was trading up 53.27 points or 0.15 per cent at 35,012.99 and the Nifty up 17.45 points or 0.17 per cent at 10,505.90.

The rupee recovered to 71.73 after falling to intraday low of 72.42 on RBI Governor Urjit Patel's sudden resignation after market hours on Monday.  Dollar selling by state-run banks on behalf of the RBI to arrest the rupee slide buoyed the domestic sentiment.

Urjit Patel quits as RBI Governor : Click here to read more

Top five Sensex gainers were YES Bank, Sun Pharma, Axis Bank, Asian Paints and Coal India, while the major losers were ICICI Bank, HDFC, HDFC Bank, Bharti Airtel and Tata Steel.

Nifty 50 December Futures (10,422)

The resignation of Reserve Bank of India’s Governor, Urjit Patel, has jolted the Indian markets today, as was expected. As a result, the Nifty 50 futures contract opened with a wide 151-point gap-down. This is the second consecutive day the index futures is posting a gap-down opening of over 150 points. Read more

Spot gold at $1,245/ounce

Gold prices held steady, supported by hopes that the US Federal Reserve could pause its rate hike cycle sooner than previously thought, but a stronger dollar amid Brexit worries weighed on the precious metal. Spot gold was steady at $1,244.71 per ounce, as of 0114 GMT. Read more

The Sensex recovered from intraday low of 34,426.29 as SEBI and the stock exchanges have stepped up their surveillance systems to keep manipulative forces in check amid an extreme volatility expected during the day due to RBI Governor Urjit Patel’s resignation and the State Assembly results.

At 11.10 am, the Sensex was trading down by 202.59 points or 0.58 per cent at 34,757.13 and the Nifty down 54.65 points or 0.52 per cent at 10,433.80.

The rupee opened weak at 72.42 against the previous close of 71.35. It hovered in a range of 72.42 and 72.04 before quoting at 72.13, down 78 paise at 11 am local time.

In a clear signal of a major rift between the government and the central bank, Urjit Patel on Monday stepped down as RBI Governor, about nine months ahead of the completion of his three-year term.This is only the second time since Independence that a sitting RBI Governor has quit.

Click here to read more

Close fight in M.P. Rajasthan

While the trends and results from counting in Chhattisgarh, Telangana and Mizoram Assemblies pointed towards a definite shape, in Madhya Pradesh and Rajasthan are likey to be hung Assemblies.

Click here to view the election results

Top five Sensex gainers were YES Bank, Sun Pharma, Asian Paints, Axis Bank and State Bank of India, while the major losers were HDFC Bank, ICICI Bank, Tata Steel, Bharti Airtel and Adani Ports.

As per provisional data, foreign portfolio investors bought shares worth Rs 116.22 crore, while domestic institutional investors were net sellers to the tune of Rs 145.80 crore on Monday.

Rupee slumps to 72.42

The rupee and bonds plunged as Reserve Bank of India Governor, Urjit Patel's unexpected resignation after market hours on Monday shocked investors. Concerns about likely mixed results from crucial state elections also kept traders wary. The domestic unit hovered in a range of 72.42 and 72.04 before quoting at 72.13, down 78 paise at 11 am local time. Click here to read more

Close fight in M.P. and Rajasthan

While the trends and results from counting in Chhattisgarh, Telangana and Mizoram Assemblies pointed towards a definite shape, in Madhya Pradesh and Rajasthan are likey to be hung Assemblies. Click here to view the live trend

Surjit Bhalla resigns from EAC-PM

Noted economist Surjit Bhalla has resigned from the Prime Minister Economic Advisory Council. His resignation has been accepted by the Government. “I resigned as part-time member PMEAC on December 1…” Bhalla tweeted early this morning. Read more

BSE sectoral indices

Oil & gas fell the most by 1.35%, followed by banking 1.25%, realty 1.00% and auto 0.94%, while IT index gained 0.67%, TECk 0.38%, FMCG 0.23% and healthcare 0.05%.

NSE sectoral indices

Nifty PVT Bank plunged 1.55%, Nifty Bank 1.51%, Financial Services 1.46% and Realty 1.34%.

The S&P BSE Sensex was trading lower by 363.23 points or 1.04 per cent at 34,596.49 and the Nifty 50 down 96.4 points or 0.92 per cent at 10,392.05 as traders remained wary ahead of the Assembly election results from five states. Investors were also shocked over RBI Governor Urjit Patel's unexpected resignation after market hours on Monday.

“The markets are already in a downtrend. They have discounted a 3-0 white wash. If even one state goes the BJP way, it will result in short-covering,” said VK Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.

“As far as the RBI Governor’s resignation is concerned, it alone has the ability to knock off 200 points from the Nifty,” he pointed out.

“Vijay Mallya’s extradition order by UK court is positive for the markets, but will provide some cushion only later on when he actually lands in India,” he added.

Meanwhile, SEBI and the stock exchanges have stepped up their surveillance systems to keep manipulative forces in check amid an extreme volatility expected during the day due to Urjit Patel’s resignation and the State Assembly results.

After a sharp plunge of over 700 points on Monday tracking the exit poll results for five States, analysts have warned that the final results showing declining votes for the ruling BJP and Patel’s resignation could trigger even a bigger loss for the markets on Tuesday.

Sensex gainers, losers

Nifty gainers, losers

Mayhem on Dalal Street

The S&P BSE Sensex tanked 529.39 points to intraday low of 34,430.33 against Monday's close of 34,959.72 and the Nifty 50 plunged 151.75 points to 10,336.70 against 10,488.75 as investors were shocked by the resignation of RBI Governor, Urjit Patel. Traders also remained wary as the initial trends of counting in the five States have given a warning signal for the BJP. In Madhya Pradesh, Rajasthan and Chhattisgarh, the BJP was trailing behind the Opposition Congress.

Click here to view the election trends

Patel steered banking system from chaos to order: Modi

Soon after Urjit Patel quit as RBI Governor, Prime Minister Narendra Modi lauded his contribution saying he steered the banking system “from chaos to order” and ensured discipline. He said Patel is a thorough professional with “impeccable integrity”. Click here to read more

An exit as tumultuous as his two-and-a-half-year tenure

Urjit Patel’s tenure as the Governor of the Reserve Bank of India will be remembered not just for demonetisation and cleaning up of the bad loans mess, but also for his abrupt resignation on Monday, making him the second RBI chief to resign since Independence. Click here to read more

Opening bell

The S&P BSE Sensex slumped 332 points to 34,627.72 against the previous close of 34,959.72 and the Nifty dropped 102.95 points to 10,385.50 against 10,488.45.

Eminent economist and columnist Surjit Bhalla on Tuesday said that he had resigned as part-time member of Economic Advisory Council to the Prime Minister(EAC-PM) on December 1. “I resigned as part-time member of PMEAC on December 1,” Bhalla said on social networking site Twitter. Read more

WHAT TO WATCH: Fund infusion may energise GMR Infra

GMR Infrastructure’s stepdown subsidiary GMR Bajoli Holi Hydropower Pvt Ltd (and a subsidiary of GMR Energy) has raised ₹225.60 crore from TNB Topaz Energy SDN Bhd, a wholly-owned subsidiary of Tenaga Nasional Berhad. The proceeds (raised through compulsorily convertible debentures) would be used for the construction of 180-MW Bajoli Holi hydroelectric project, Himachal Pradesh. The project is under advanced stage of construction.

Today's Pick

Radico Khaitan (₹367.8): Sell

The outlook for the stock of Radico Khaitan is bearish. The stock had tumbled over 4 per cent on Monday and has closed on a weak note. Read more

Day Trading Guide for December 11

₹2089 • HDFC Bank

₹668 • Infosys

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