Sensex ends 68 points lower; Nifty above 12,000 level

Closing bell

Retreating from its record peak, market benchmark BSE Sensex ended 68 points lower as investors booked profits at higher levels amid mixed cues from global markets.

After scaling its record intra-day high of 41,120.28, the 30-share BSE Sensex settled 67.93 points, or 0.17 per cent, lower at 40,821.30. The broader NSE Nifty gave up its life-time peak of 12,132.45 and finished 36.05 points, or 0.30 per cent, down at 12,037.70.

Bharti Airtel was the top loser in the Sensex pack, dropping 4.34 per cent, followed by PowerGrid (2.26 per cent), Sun Pharma (1.75 per cent), M&M (1.67 per cent) and TCS (1.60 per cent). On the other hand, ICICI Bank rose 2.26 per cent, IndusInd Bank by 1.46 per cent, Tata Steel by 1.17 per cent and ITC by 0.52 per cent.

Analysts said though macros have still not turned positive and corporate earnings growth remains sluggish, investors are enthused by ample liquidity in the system driving transmission, gradual normalisation of risk appetite of banks, unsold housing inventory beginning to correct, PSU banks being recapitalised, NPA cycle peaking out and base becoming easier post December quarter.

During the day, bourses pared all gains as investors booked profits at higher levels, traders said. Bourses in Shanghai and Tokyo ended higher, while those in Hong Kong and Seoul settled lower. Stocks in Europe were trading on a mixed note.

On the currency front, the rupee appreciated 20 paise (intra-day) against the US dollar to 71.53. Brent futures, the global oil benchmark, rose 0.18 per cent to USD 62.73 per barrel. - PTI

Bullion market

The absence of strong demand in physical market kept gold prices under pressure in India. File Photo

Gold prices on Tuesday fell by ₹68 to ₹38,547 per 10 gram in the national capital on rupee appreciation and weak demand, according to HDFC Securities. Gold had closed at ₹38,615 per 10 gram on Monday, it said. Silver also fell marginally by ₹39 to ₹45,161 per kg from ₹45,200 per kg in the previous trade. Read the bullion market report here

European share markets

The pan-European STOXX 600 index was flat at 0803 GMT. File Photo

European shares were slightly lower after a strong start to the week, as investors sought concrete signs of progress in US-China trade talks, while London's Compass Group tumbled after signalling softness in its European business.

The benchmark index was down 0.2 per cent, after gaining more than 1 per cent on Monday, in its best day in more than a month, following a report that Washington and Beijing were close to a trade pact. Read the European share markets report here

'NBFC crisis needs to be fixed'

The consumption story is a big story, actually. You can lower GST, tax, etc, but, till the time consumption doesn’t come back, I don’t see the problem going away. The NBFCs really fuel consumption in real estate and retail ... the NBFC crisis needs to be fixed, says Gautam Singhania. Click here to the full interview of Gautam Singhania where he talks about consumption and Raymond demerger .

NSE, BSE to exclude F&O contracts on four companies

BSE last week announced that Tata Motors will be dropped from the the exchange’s benchmark Sensex. File Photo

Leading stock exchanges NSE and BSE have decided to exclude as many as four securities including Tata Motors and NBCC (India) from future and options trading from January 31 next year. Other two stocks to be excluded are Dish TV India and Castrol India, the bourses said in separate circulars.

Accordingly, no contracts shall be available for trading in these securities with effect from January 31, 2020, they added. Click here to read why the bourses are excluding F&O contracts on four companies including Tata Motors

Interglobe Aviation stocks tank

Shares of  InterGlobe Aviation  dropped over 4 per cent after the DGCA instructed IndiGo to ground an old A320 neo family aircraft with an unmodified Pratt and Whitney (PW) engine for every new A320 neo plane added to its fleet.

The scrip of budget carrier IndiGo’s parent tanked 2.54 per cent to ₹1,413 on the BSE. The DGCA on Monday instructed IndiGo to ground an old A320 neo family aircraft with an unmodified PW engine for every new A320 neo plane added to its fleet to prevent large-scale cancellation of flights from January 31 onwards.

Read more:   DGCA to IndiGo: For every new A320neo plane, ground an old one with unmodified PW engine

Tejas Networks signs pact with BEL

Telecom gear maker Tejas Networks said it has entered into a pact with Bharat Electronics , under which it will offer optical transmission, access and data-switching products for turn-key projects in India and overseas.

The company said that it has received purchase orders totalling over Rs 60 crore from defence solution provider Bharat Electronics, towards supply and services of its optical and data networking equipment for various projects won by country’s defence solution provider, which includes the Kerala fibre optic network, defence communication networks and smart city projects.

The stocks Tejas Networks were trading 9.99 per cent higher at Rs 104.55 while the scrips of BEL were trading 3 per cent lower at Rs 103.50.

Indices trade flat

The benchmark indices, Sensex and Nifty, were trading flat after scaling a life time peak in the opening session. While the BSE Index was trading 34.05 points or 0.08 per cent higher at 40,923.28, the NSE index was flat at 12,063.55.

The bank stocks were cushioning the 30-share index and the telecom and TecK stocks were dragging the index lower.

The top gainers in the Sensex pack were ICICI Bank, Yes Bank, ONGC, Tata Steel and HDFC while the losers were Bharti Airtel, Power Grid, Sun Pharma, Mahindra & Mahindra, and L&T.

In the broader index, the scrips lending support were GAIL, ICICI Bank, Yes Bank, Dr Reddy's and Titan while the laggards were Zee Entertainment, Infratel, Bharti Airte, Grasim and Tata Steel.

Alibaba Hong Kong shares

Daniel Zhang, chairman and chief executive officer of Alibaba Group Holding Ltd, center, applauds during Alibaba Group Holding Ltd's listing ceremony at the Hong Kong Stock Exchange in Hong Kong, China, on Tuesday.

Alibaba Group's Hong Kong shares made a solid debut on Tuesday, trading 6.9% higher than their issue price and at a small premium to pricing in New York after marking the world's largest stock sale this year.

The Chinese e-commerce giant has raised at least $11.3 billion from the secondary listing, which has been seen as a vote of confidence in Hong Kong's financial future amid six months of sometimes violent anti-government protests. In early afternoon trade, the shares were exchanging hands at HK$188.10. Read more on the performance of Alibaba shares on Hong Kong market debut here

Mid-cap shares may make a comback

The MSCI India Mid-Cap Index has lost 17% in the past two years.

India’s smaller companies have earned another look after suffering through some two years of under-performance relative to their larger peers.

The divergence between the two groups is significant compared with longer-term historical correlations, according to Citigroup Inc. The MSCI India Mid-Cap Index has lost 17 per cent in the past two years, while the benchmark S&P BSE Sensex Index has gained more than 20 per cent. Read more on the performance of mid-cap shares

Thomas Cook shares zoom

Thomas Cook India said its corporate restructuring process has been completed. File Photo

Travel services firm  Thomas Cook India  shares on Tuesday zoomed 11 per cent after the company said its corporate restructuring process has been completed after receiving approvals from the NCLT Mumbai and Bengaluru.

Shares of the company jumped 10.48 per cent to ₹169.15 on the BSE. At NSE, it advanced 11 per cent to ₹170. Click here to read more on the restructuring plans of Thomas Cook India

Nifty Call

The Indian benchmarks broke out of the resistance and registered a fresh lifetime high today. The Nifty spot marked a high of 12,132.45. The November futures contract of the Nifty 50 index registered fresh lifetime high of 12,137.6 today.

The market breadth of the Nifty 50 index is currently at 28-22 and it hints a bullish bias. Hence, traders can initiate long positions on decline with a stop-loss at 12,030 i.e. below the support at 12,050. Read our Nifty call for November futures here

Gold, silver continue to weaken

MCX Gold for December opened weak on Tuesday at Rs 37,661 per 10 grams. Representative image

International spot gold ended lower, on Monday, by 0.49 per cent at USD 1,454.9 per ounce. On Tuesday in opening trade, Comex gold for December quoted at USD 1,455 down by USD 1.9 an oz from previous close. Tracking the international price trend, India spot gold may slip below Rs 38,000 per 10 grams on Tuesday after closing at Rs 38,023  (for 999 purity spot as quoted by IBJA) on Monday. MCX Gold for December opened weak on Tuesday at Rs 37,661 per 10 grams, down Rs 62 from previous close. Click here to read why the prices of gold and silver continue to weaken

RCom shares rally

Shares of  Reliance Communications  shares rose 6 per cent to hit upper circuit on Tuesday after the company received three resolution plans from different firms. The debt-ridden Reliance Communications on Monday received three resolutions plans from VFSI Holdings Pte, Bharti Airtel Ltd, and UV Asset Reconstruction Company.

Sensex, Nifty marginally high

After scaling all-time peak, the benchmark indices were trading marginally higher in the afternoon session. The BSE index Sensex was trading 0.23 per cent or 95.06 points higher at 40,984.29 while the broader index Nifty was trading 0.16 per cent or 19.45 points higher at 12,093.20.

Karvy mess: Who is to blame?

The Karvy case has brought to the fore the systemic breakdown in India’s capital market. The blame for the recent spate of broker defaults, especially what happened with the clients of Karvy, has to be shared by these very regulator entities, experts tell  BusinessLine . Read more on the Karvy mess and who is responsible for the crisis

Bharti Airtel shares fall

Bharti Airtel shares fell over 3 per cent on Tuesday after Icra downgraded the company’s long-term rating due to higher provisioning in its latest quarterly results following the Supreme Court judgement on AGR and spectrum charges.

The stock of  Bharti Airtel  fell 3.41 per cent to trade at ₹435.90 on the BSE. On the NSE, the scrip slumped 3.46 per cent to ₹435.75.

Sensex, Nifty pare early gains

The 30-share BSE index Sensex, after touching a lifetime high in the opening trade, pared the gains and was trading 0.08 per cent or 34.34 points at 40,931.77. The broader index Nifty was trading flat at 12,075.50 in the mid-morning session.

The financials and bank stocks were lending support to the index while the Bharti Airtel and Zee stocks emerged top losers.

In the positive pack, the top stocks were Yes Bank, ICICI Bank, ONGC, IndusInd Bank and HDFC while the laggards were Bharti Airtel, Power Grid, Vedanta, Sun Pharma and L&T.

In the broader index, the major gainers were Yes Bank, GAIL, ICICI Bank, Dr Reddy's and ONGC while the scrips dragging the index lower were Zee Entertainment, Infratel, Bharti Airtel, JSW Steel and Grasim

Cardamom auctions

Active buyers’ participation is likely to ensure a steady market in cardamom auctions on Tuesday, despite lower arrivals vis-à-vis last few days. According to trade analysts, Acumen Capital Markets Ltd, the most active cardamom December futures price is showing some weakness on daily chart. Here's more on the cardamom auctions during morning trade

IndianOil may bid for BPCL stake

A file photo of Numaligarh Refinery in Assam. Oil refiners are facing difficulties in supporting demand in the North-East Bloomberg

Indian Oil Corporation Ltd (IndianOil) may emerge as one of the contenders for Numaligarh Refinery Ltd (NRL) once the Centre initiates its disinvestment process. IndianOil, one of the nation’s biggest oil refinery-cum-retailing PSUs, does not foresee any oil supply constraint due to geopolitics.

IndianOil imports about 70 million tonnes per annum of crude oil. Today, over 50 per cent of its crude requirements are met through term contracts and the remaining from spot. Iraq and Saudi Arabia remain its largest suppliers, besides Nigeria, Kuwait, Angola and the UAE. Read more on the IndianOil's plan to bid for BPCL stake here

The stocks of IndianOil were trading 0.34 per cent higher at Rs 131.30 while the scrips of Bharat Petroleum were trading 1.71 per cent lower at Rs 498.50

Forex market

The dollar held an upper hand against the yen as optimism on a trade deal between the United States and China dented the allure of the safe-haven unit while the British pound was supported by hopes of an end to a hung parliament.

The euro softened to $1.1013, near one-week low of $1.10035 touched on Monday. Sterling traded at $1.2900, supported by hopes that the ruling Conservatives could win a majority in the Dec. 12 election to end a hung parliament. Read the complete forex market report here

Zee shares tank

Shares of Zee Entertainment Enterprises plunged over 9 per cent after Subhash Chandra resigned as chairman of his flagship company, with immediate effect. Media mogul Chandra on Monday resigned as chairman of his flagship company Zee Entertainment Enterprises Ltd , with immediate effect. Chandra will remain the company’s non-executive director, which he founded in 1992.

The stocks of Zee Entertainment were trading 7.13 per cent lower at Rs 319.15 in the BSE index

Indices trim early gains

Shares tracked broader Asian peers higher, with NSE and BSE indexes touching record highs, as investors cheered signs of fresh progress in the trade negotiations between the United States and China.

The NSE Nifty 50 index slips 0.03 per cent or 3.75 points to 12,070, while the S&P BSE Sensex climbed 62.51 points or 0.15 per cent to 40,951.74.

Chinese Vice Premier Liu He held talks over the phone with US Trade representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin on issues related to a phase one trade agreement, China's commerce ministry said.

The news sent MSCI's broadest index of Asia-Pacific shares outside Japan up 0.5 per cent to a one-week high.

In the domestic market, state-owned banks rose the most. The Nifty PSU sub-index, which has fallen over 10 per cent so far this year, was up 0.75 per cent.

The Nifty metals index rose for a second consecutive day and posted gains of 0.7 per cent. Hindalco and Tata Steel were among the top gainers on the Nifty, rising 1.9 per cent and 1.7 per cent, respectively. - Reuters

US stocks

Each of Wall Street's three major averages kicked off the trading week with record closes on Monday as signs pointed to progress between the United States and China on a trade truce, while a round of merger deals also helped buoy sentiment. Gains on Monday were broad with only the defensive consumer staples and utilities S&P sectors in the red. More on the US stock markets, click here

Daily rupee call

The rupee opened higher at 71.66 versus yesterday’s close of 71.73. Though the market is in a risk-on sentiment which favours the rupee, the resistance at 71.6 is strong. Hence, it is recommended to initiate rupee longs with tight stop-loss. Click here to read our daily rupee call

Sensex, Nifty hit record high

Market benchmark BSE Sensex jumped over 200 points in early trade to hit its record high of 41,108, and NSE Nifty surged to its lifetime peak of 12,126 amid sustained foreign fund inflow and positive global cues.

The 30-share index was trading 218.82 points, or 0.54 per cent, higher at 41,108.05. Similarly, the broader Nifty rose 51.55 points, or 0.43 per cent, to 12,125.50.

Top gainers in the Sensex pack included Yes Bank which rose up to 1.57 per cent, Tata Steel 1.54 per cent, Sun Pharma 1.45 per cent, ICICI Bank 1.48 per cent, Infosys 1.10 per cent and RIL 0.76 per cent. On the other hand, Bharti Airtel fell up to 1.73 per cent, Kotak Bank 0.40 per cent, Bajaj Auto 0.33 per cent, L&T 0.22 per cent and Hero MotoCorp slipped 0.05 per cent.

On Monday, the Sensex ended 529.82 points, or 1.31 per cent, higher at 40,889.23 -- its all-time closing peak. Likewise, the Nifty closed with a gain of 159.35 points, or 1.34 per cent, at 12,073.75 -- just shy of its life-time closing high.

According to experts, market is on a high tracking sustained buying from foreign investors over last couple of weeks, easing global worries on the trade tariff front, new developments over divestment to curb fiscal deficit and expectations of cut in interest rate by the Reserve Bank of India.

Short covering ahead of the expiry of November derivatives contracts on Thursday is also contributing to the rally, traders said.

Foreign institutional investors bought shares worth Rs 960.90 crore in the capital market in the previous session, while domestic institutional investors sold equities worth Rs 213.66 crore, data available with stock exchange showed.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading on a mixed note. Stocks on Wall Street ended in the green on Monday.

On the currency front, the rupee appreciated 8 paise against the US dollar to trade at 71.66 in early session. Brent futures, the global oil benchmark, slipped 0.05 per cent to USD 62.59 per barrel. - PTI

Global markets

Japan's Nikkei stock index closed down 2.00 per cent, the biggest one-day decline since August 26. File Photo

Asian stocks rose, bolstered by Wall Street's record closing highs and signs of new momentum in Beijing's and Washington's efforts to end their long and acrimonious trade dispute. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 per cent to a one-week high. Australian shares were up 0.9 per cent, while Japan's Nikkei stock index rose 0.91 per cent. Read the Asian and global stock markets report here

Stocks in focus

JMC Projects , a subsidiary of Kalpataru Power Transmission, in a filing to the exchanges on Monday said it has secured new orders worth ₹615 crore. Though the stock has not reacted to the news positively, CEO & Dy MD SK Tripathi’s comment that “these orders along with the orders announced earlier, helps us to further strengthen our order book and widen our client base in the B&F business. We remain confident to deliver on our growth targets going forward,” could boost the stock.

Though the SpiceJet stock dropped 2.92 per cent intra-day, it recovered sharply and ended in positive territory. One reason for the recovery could be the news in market circles that the low-cost carrier, which is facing a financial crunch, may go for a ₹750-crore fund-raise through a QIP. However, in a clarification to the BSE on Monday, SpiceJet said, “... the company does not have any plan to come with any QIP at this time.” The shares of SpiceJet closed at ₹109.65, up 0.14 per cent.

The shares of DHFL ended lower on Monday on the back of the company announcing that it may not be able to declare financial results on the scheduled date. The crippled mortgage lender announced earlier that it would be hold a meeting of the board of directors on Monday to declare second quarter results. Though the stock ended flat, it may be under selling pressure as investors are unlikely to evince interest till the results date announcement, according to traders.

Opening bell

The 30-share BSE Index Sensex opened 133.62 points higher at 41,022.85 against the previous close of 40,889.23. The 50-share NSE index Nifty opened 37.75 points higher at 12,111.50 against the previous close of 12,073.75

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:

₹1271 • HDFC Bank

₹698 • Infosys

₹247 • ITC

₹131 • ONGC

₹1561 • Reliance Ind.

₹336 • SBI

₹2081 • TCS

12096 • Nifty 50 Futures

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

Today's pick

HDFC Life logo

We recommend a buy in the stock of HDFC Life Insurance at the current levels of Rs 597.8. The daily relative strength index is showing an uptick and has crossed above the mid-point level of 50; the moving average convergence divergence indicator has turned bullish as it has entered the positive territory. Read our today's stock pick recommendation here

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