Sensex slumps 272 points; Nifty falls below 10,700 mark

Closing bell

The 30-share BSE index Sensex closed at 35,470.15, lower by 272 points against the previous close of 35,742.07. HDFC, HDFC Bank and Reliance primarily dragged the index while tech stocks TCS and Infosys supported the BSE index.

The 50-share NSE index Nifty traded between 10,649.25 and 10,792.30 and closed lower by 90.50 points at 10,663.50.  Bharti Infratel, TCS, Wipro, M&M and Kotak Bank were the top gainers while JSW Steel, Hero MotoCorp, IOC, Bajaj Auto and Hindalco were the major losers.

Heavy selling in realty, consumer durables, metal and auto counters amid weak global cues as political uncertainties in the US dampened sentiment.

BSE sectoral indices

Among the sectoral indices, realty was the major loser, down by 2.29 per cent, followed by metal stocks (2.16 per cent) and consumer discretionary goods and services (1.58 per cent). The stocks trading in the positive zone were information technology and TeCK.

After rising briefly to 35,910.67 at the outset, the 30-share quickly slipped into the negative terrain in line with a weak trend at other Asian markets and touched a low of 35,423.24 before ending at 35,470.15, down by 271.92 points, or 0.76 per cent.  The gauge had plunged 572.04 points Friday.

Stock exchanges will remain closed Tuesday on account of Christmas.

US shutdown

According to experts, global equities were subdued as a partial US government shutdown that entered was set to stretch through Christmas, after Congress adjourned for the weekend with no deal in sight to end an impasse over funding for President Donald Trump’s wall on the US-Mexico border.

Also, investors were nervous after reports emerged that Trump privately asked cabinet members if he had the authority to fire Fed Chair Jerome Powell after interest rates were increased and the stock market tanked.

On a net basis, domestic institutional investors (DIIs) sold shares worth Rs 488.55 crore, while foreign portfolio investors (FPIs) bought shares worth Rs 134.14 crore on Friday, provisional data showed.

(with inputs from PTI)

 

Kissandhan raises ₹29 cr

Delhi-based agri-logistics group Sohan Lal Commodity Management’s NBFC arm Kissandhan has raised ₹29 crore through an issue of non-convertible debentures that were subscribed by AAV Sarl. Read more

Stock analysis: NIIT

Several mid-tier software services companies have seen their share prices surge over the past one to one-and-a-half years. The widespread correction in October-November resulted in a few quality names from the IT pack becoming attractive from a valuation perspective due to decline in their share prices.

 

NIIT Technologies ( NIIT Tech. ) is one such solid mid-tier IT player whose stock price has corrected around 20 per cent from its peak, presenting an attractive buying opportunity for long-term investors. Click here to read the stock analysis and stock performance of NIIT Technologies

Commodities market

 

Oil markets rose on Monday on signs that the recent price plunge may start crimping supply from the United States, currently the world's biggest crude producer, though concerns about the global economy continued to weigh. Crude prices rebounded from sharp declines last week. Read the commodities market report here

European markets

 

European shares fell at the start of a holiday-shortened week on Monday as worries over slowing economic growth and tighter monetary conditions continued to weigh. European shares are down 13.5 per cent so far in 2018 and are on track for their worst yearly performance since 2008. Read the European markets report here

The 30-share BSE index Sensex was trading down by 263 points at 35,478.86 against the previous close of 35,742.07 primarily dragged down by HDFC and HDFC Bank stocks.

Among the sectoral indices, realty sector was the major loser, down by 2.28 per cent. FMCG (1.80 per cent), metal (1.64 per cent) also weighed on the index.

The 50-share NSE index Nifty was also trading in red at 10,666.75, lower by 87 points. JSW Steel, Hero MotoCorp, IOC, Bajaj Auto and Titan were the major losers. 

Choosing active mutual funds

 

An active fund strives to give you higher positive returns than the benchmark index when the market is in an uptrend, and lower negative returns when the market is in a downtrend. Here, we discuss why picking active funds is no small task .

Forex market

 

The Japanese yen and the Swiss franc gained on Monday, thanks to safe-haven buying as sentiment in financial markets remained fragile on heightened worries over political instability in the United States and fears of a global economic slowdown.

Trading volumes were thinning out with most global markets set to shut for Christmas, while Japan was closed on Monday for a holiday. Read the forex market report here

Aurobindo Pharma gets USFDA nod for anaesthesia drug

 

Aurobindo Pharma on Monday said it has received final approval from the US health regulator to market anaesthesia drug Vecuronium Bromide Injection. The stock was trading at Rs 722.25, up 0.24 per cent  at 2.10 pm in BSE. Click here to read more on the USFDA approval for anaesthesia drug

The 30-share BSE index Sensex is trading lower by 54 points at 35,688.61 against the previous close of 35,742.07 points.

The 50-share NSE index Nifty was trading at 10,734.35, lower by 19.65 points against the previous close of 10,754.

 

Future perfect: Consider calendar put on Sun TV

 

The outlook for Sun TV Network futures (₹591.25) has turned negative. We advice traders to exit the position if the loss hits ₹8,000. Hold the position for at least three weeks. More on the Sun TV stock performance here

Radiant Life Care closes in on Max Healthcare

 

Global investment firm Kohlberg Kravis Roberts-backed hospital management company Radiant Life Care is in the final stages of negotiations to acquire a 49 per cent stake in Max India’s hospital chain Max Healthcare. At about 1.30 pm, Max India shares were trading down 0.83 per cent at Rs 83.75 on the BSE. Read more on the Radiant Life-Max Healthcare deal here

Jaitley draws three rates structure of GST

 

Finance Minister Arun Jaitley on Monday said that future of Goods & Services Tax (GST) might limit the slabs to just three – 0 per cent, 5 per cent and standard rate. He also suggested drawing road map to merge two standard rate to one. Read more on FM's three rates structure of GST suggestion here

The 30-share BSE index Sensex was trading at 35,699 points, lower by 42.80 points against the previous close of 35,742.07 primarily dragged down by the HDFC Bank and HDFC stocks. However, the tech stocks - TCS and Infosys - and ITC  supported the index.

Among the sectoral indices, realty stocks was the major loser, down 1.78 per cent. The TeCk and IT stocks were trading in the positive zone, up by 1.2 per cent.

Bullion market

 

Gold prices climbed on Monday, holding ground near a six-month high hit last week, as investors remained concerned about political uncertainty in the United States and global economic slowdown. Spot gold was up 0.6 per cent at $1,263.91 per ounce. Read the bullion market report here

Nifty Call

 

The Nifty 50 futures contract is continuing to trade under pressure. After tumbling 2 per cent on Friday, the index futures have extended its downmove today. The contract is down 34 points and is currently trading at 10,733. The outlook remains negative. Read our Nifty Call here

The shares edged lower, in line with broader Asian markets, as political uncertainties in the US and slow global economic growth dampened investor risk appetite. MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.5 per cent to its lowest in seven weeks.

Read the Asian markets report here

Back home, shares continued trading in the red for a third straight session even after the government announced tax cuts on over 20 items in a bid to boost the chances of BJP in next year's general elections. The GST council agreed to lower the tax on some goods including televisions, batteries and movie tickets.

Multiplex cinema theatres operator INOX Leisure Ltd rose as much as 4.12 per cent while Amara Raja Batteries Ltd gained 1.3 per cent. “From the GST point of view of course it's positive but right now the markets are volatile,” said Harendra Kumar, managing director, Elara Securities. “Volatility due to various global factors but once the markets comes out of this, expect an upward momentum. We see Nifty hitting 12,300-12,400 in the next calendar year.”

The broader NSE index was down 0.14 per cent at 10,738.65 as of 0538 GMT, while the benchmark BSE index was 0.05 per cent lower at 35,723.66.

Among decliners, JSW Steel Ltd and Hero MotoCorp Ltd were the biggest percentage losers on the NSE index, falling 3.8 per cent and 3.55 per cent, respectively. Financials were also down, with HDFC Bank Ltd, the biggest drag on the index, falling 1.3 per cent.

Among gainers, IT stocks including Infosys Ltd and Tata Consultancy Services Ltd rose 1.1 per cent and 1.4 per cent, respectively. The Nifty IT index was up 0.5 per cent, having shed 4.5 per cent in the last four trading sessions

Top gainers and losers

 

Commodity Analysis: India’s steel exports hit by US tariff hike

 

The effect of the trade war unleashed by US President Donald Trump early this year is beginning to impact the external trade numbers of countries across the globe. An analysis of the effects of the import tariff hike by the US on India’s steel sector shows that while exports have taken a hit, domestic steel prices have not. Click here to read the analysis of steel sector

Lupin signs pact with Abbvie

 

In a landmark development, Lupin Limited on Monday announced partnership with US-headquartered global biopharmaceutical player AbbVie Inc for developing Novel Oncology Drug to treat Hematological Cancers.

Lupin shares lost by close to 2 per cent on the NSE at Rs 842.40 on Monday. Read more on the partnership here

SEBI to re-look order on Kotak MF practices

 

SEBI is taking a re-look at its October order that had let go of Kotak Asset Management (AMC) and Kotak Mahindra Trustee without levying any penalty for the various violations by Kotak Mutual Fund (MF). Click here to read more on the SEBI's order and norms on mutual fund industry

The 30-share BSE index Sensex was trading down by 75 points at 35,666 against the previous close of 35,859.66. The top gainers were TCS, Infosys and Sun Pharma and the major loser was Hero MotoCorp (3.28 per cent), followed by Bajaj Auto and HCL Tech.

The 50-share NSE index Nifty was also trading in red at 10,723, lower by 31 points against the previous close of 10,754.

 

Rallis India - Buy

 

If you are looking for a healthy bet on the rural revival theme, given that the general elections are due next year, Rallis India may present an attractive opportunity. Rallis India, a Tata group company in the agro-chemical space, looks like a value buy. At the current market price of ₹175, the stock discounts its estimated earnings for 2019-20 by 14 times; its five-year average PE multiple is 23 times. Click here to read the stock performance of Rallis India

LGB Forge: All eyes on the rights issue

The board of directors of LGB Forge will meet today to consider rights issue size, fix the price and decide on the entitlement ratio for the eligible shareholders. The board will also consider fixing the record date to identify eligible shareholders for the rights issue. It may be recalled that in April, the board had approved raising of funds up to ₹28 crore by way of a rights issue. Shareholders of LGB Forge will closely monitor the quantum of funds and the purpose of fund raising.

The stocks of LGB Forge was trading at 3.26, lower by 4.96 per cent or 0.17 points.

Home buying may cost less in 2019

 

Come 2019, buying an under-construction flat will become cheaper. The Centre and the State governments are working to lower the Goods and Services Tax (GST) with some riders.

The stocks of the realty sector was trading down by 2.15 per cent at 1,812.93. Click here to read more on the government's proposal to cut GST

US markets

 

US equity index futures were little changed late on Sunday as electronic trading resumed to kick off a holiday-shortened week following reports over the weekend that President Donald Trump has privately discussed firing the head of the US Federal Reserve. Read more on the US stocks here

The Sensex was trading at 35,680.93, lower by 61 points against the previous close of 35,742.07. Stocks that dragged the index down were HDFC Bank, Reliance Industries and HDFC. However, the tech stocks - TCS and Infosys - and ITC supported the index.

Among the sectoral indices, realty was trading down by 2.38 per cent, followed by metal 1.42 per cent. IT and TeCK were trading in the green, up by 1 per cent and 0.75 per cent, respectively.

The Nifty 50 was down 25.55 points or 0.24 per cent at 10,728.45. Bias was negative with 32 stocks declining against 18 that advanced. On the Nifty,  JSW Steel, Hero MotoCorp, Bajaj Auto, Asian Paints and ZEE Enterprises were among the top losers, down by up to 3.8 per cent.

The volatility index, India VIX, was up by 0.64 per cent at 16.0950.

Stock market in 2018

 

The bellwether BSE Sensex rallied smartly until August only to give up all its gains in the downturn that followed. Still, the index is up about 5 per cent year-to-date thanks to the recovery over the past couple of months. Most stocks, though, have not been able to keep their heads above water. Click here to read how the stock markets performed in 2018

Broker's call: Godrej Consumer Products (Buy)

Chola Securities

Godrej Consumer Products (Buy)

CMP: ₹805.35

Target: ₹980-1,000

Godrej Consumer Products (GCPL) is a FMCG company, with presence in household and personal care segment. More on this

Sensex, Nifty choppy amid weak global cues

The benchmark BSE Sensex opened on a volatile note in early trade on short-covering by investors amid weakness in Asian markets. Buying activity in pharma, technology, banking auto and FMCG stocks, influenced market sentiment.

 

The benchmark BSE Sensex was trading 28.05 points, 0.08 per cent, lower at 35,714.02, after swinging over 200 points between highs and lows of 35,910.67 and 35,675.02, respectively. The gauge had plunged 572.04 points on Friday.

NSE Nifty was trading lower 25.25 points, or 0.23 per cent, at 10,728.75.

Gainers and losers at 10 am

Top losers were Hero MotoCorp, Vedanta, Bajaj Auto, Bajaj Finance, Asian Paint and HDFC Bank fell up to 3 per cent.

On the other hand, major gainers were Sun Pharma, Infosys, TCS, SBI, ITC, ICICI Bank, Tata Motors, IndusInd Bank, Kotak Bank, Axis Bank, Maruti Suzuki, L&T, Bharti Airtel, M&M and Coal India, rising up to 2.12 per cent.

According to experts, global equities were choppy as a partial US government shutdown that entered was set to stretch through Christmas, after Congress adjourned for the weekend with no deal in sight to end an impasse over funding for President Donald Trump’s wall on the US-Mexico border.

Also, investors are nervous after reports emerged that Trump privately asked cabinet members if he had the authority to fire Fed Chair Jerome Powell after interest rates were increased and the stock market tanked.

Meanwhile, on a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 134.14 crore, while domestic institutional investors (DIIs) sold shares worth Rs 488.55 crore Friday, provisional data showed.

Asian markets were trading lower following Friday’s losses on the Wall Street. Hong Kong’s Hang Seng was down 1.29 per cent. Shanghai Composite Index shed 0.49 per cent in early trade. Korea’s Kospi fell 0.38 per cent and Taiwan index slipped 0.20 per cent. Japan’s markets are closed Monday.

The US Dow Jones Industrial Average ended 1.81 per cent lower Friday.

Sector round-up

 

The year began with ample optimism about growth and earnings. But broad-based market correction, regulatory and policy headwinds and demand slowdown have dampened sentiments. We look back to find out what’s in store for key sectors in 2019

Rupee gains 8 paise against dollar in early trade

 

The rupee gained 8 paise against the US dollar on Monday to trade at 70.10 in on selling of the US currency by exporters and banks. The dollar was weak against major currencies in global markets which supported the local currency. Read the rupee report here

Sensex top gainers and losers

 

Asian market

 

Asian stocks were subdued on Monday as investors fretted that political instability in the United States was leaving the country rudderless at a time when the global economy was showing signs of faltering. Moves were limited by a holiday in Japan while many bourses are set to close early for Christmas. More here

Opening bell

The 30-share BSE index Sensex opened at 35,859.66 points against the previous close of 35,742.07, higher by 117.59 points. The 50-share NSE-index Nifty opened at 10,751.50, marginally lower by 2.5 points against the previous close of 10,754 points.

Weekly Trading Guide

SBI (₹291.6)

SBI surged over 4 per cent during intra-week, but lost momentum towards the end of the week. It reversed sharply lower from the high of ₹301.95, giving back most of the gains and closed marginally higher for the week. A near-term support is in the ₹285-₹284 region. Whether the stock sustains above this support zone or not will determine the direction of the next move. If SBI reverses higher from this support, the bullish outlook will remain intact. In such a scenario, there is a strong likelihood of the stock breaking above the resistance at ₹301. The ensuing targets above ₹301 are ₹310 and ₹312. A further break above ₹312 will pave way for ₹322. On the other hand, if SBI breaks below ₹284, it can fall to ₹282 or ₹280. A break below ₹280 will increase the likelihood of the fall extending to ₹276. Traders who have taken long positions on a break above ₹294 last week can hold it, but should remain cautious. Retain the stop-loss at ₹282 for the target of ₹318. Revise the stop-loss higher to ₹301 as soon as SBI moves up to ₹307.

ITC (₹276.5)

ITC has come-off sharply from its high of ₹284.25 in the past week. The 55-week moving average resistance at ₹284 has halted the recent upmove in the stock has triggered this reversal. This leaves the near-term outlook mixed for the stock. A key support is near current levels at ₹274. If ITC declines below this support, it can come under pressure. In such a scenario, a fall to ₹270 is possible. A break below ₹270 will then increase the likelihood of the fall extending towards ₹266 or ₹265. The region between ₹266 and ₹265 is a significant short-term support. A bounce from this support zone can trigger a relief rally to ₹275. But a break below ₹265 can drag ITC lower to ₹260. On the other hand, if the stock manages to reverse higher from ₹274 in the coming days, an upmove to ₹280 and ₹283 is possible. A further break above ₹283 can then target ₹287 and ₹290. A strong break above ₹290 is needed to turn the outlook bullish. Such a break can will increase the likelihood of the stock targeting ₹300 and ₹310.

Infosys (₹645.7)

Infosys snapped its three-week rally recently. The stock plummeted over 8 per cent last week, triggering the stop-loss on the long positions recommended. The sharp fall has turned the short-term outlook to negative for the stock. Key resistances are poised at ₹662, ₹667, ₹670 and then in the ₹680-₹685 region. This resistance cluster is likely to cap the upside in the near term. Though an intermediate bounce cannot be ruled out, a strong break above ₹685 looks unlikely. A fall to ₹625 is possible in the coming days. A break below ₹625 will then increase the likelihood of the fall extending to ₹600. The region between ₹600 and ₹590 is a crucial medium-term support. The price action around this support zone will need a close watch to get a cue on the subsequent move. Traders can make use of the bounce and go short at ₹660 and ₹670. Stop-loss can be placed at ₹695 for the target of ₹605. Revise the stop-loss lower to ₹645 as soon as the stock moves down to ₹637. The outlook for the stock will turn positive only if it records a decisive weekly close above ₹700.

RIL (₹1,098.3)

RIL seems to be lacking fresh and strong follow-through buyers. The stock inched higher in the initial part of last week but reversed sharply lower, giving back all the gains after hitting a high of ₹1,146.55. RIL declined 1.2 per cent last week. The near-term outlook is negative. A fall to ₹1,060 or ₹1,050 is likely in the coming days. A break below ₹1,050 will then increase the possibility of the fall extending towards ₹1,030 – the 55-day moving average and ₹1,010. On the other hand, if RIL manages to bounce from the ₹1,060-₹1,050 support zone, an upmove to ₹1,100 is possible. A break above ₹1,100 will then increase the likelihood of the stock extending its upmove to ₹1,150 and ₹1,160 — the 21-week moving average resistance. Broadly, RIL is likely to oscillate in a wide sideways range between ₹1,000 and ₹1,200 for some time. A decisive breakout on either side of ₹1,000 or ₹1,200 will then determine the direction of the subsequent move. Traders can stay out of the market until the range breakout gives a clear cue on the next trend.

Tata Steel (₹520.1)

The upmove in Tata Steel seems to be lacking strength. The stock made a high of ₹532 and reversed lower to close at ₹520.1, up 1.3 per cent for the week. The price action last week indicates that the stock is facing resistance and getting strong sellers around ₹533. The short-term outlook will turn positive only if the stock breaks ₹533 decisively. Such a break can take the stock higher to ₹560 or ₹570. But the bias is negative on the chart, which leaves the possibility high of the stock falling back to ₹500 levels again. A strong break below ₹500 will then increase the likelihood of the stock extending its downmove to ₹480. A further break below ₹480 can drag Tata Steel lower to ₹460. As mentioned last week, the level of ₹460 is a crucial long-term trend support, which may have the potential to halt the downtrend in the stock that has been in place since the beginning of this year. As such, the price action around ₹460 will need a close watch to get a cue on the next move.

Index Outlook

 

The Nifty and the Sensex failed to sustain the rally towards the end of the week and tumbled sharply, taking cues from weak global markets. Investors need to tread with caution in the coming week as volatility and selling pressure due to expiry of the December derivative contracts can keep the indices on the edge. Read the market outlook here