Sensex tumbles 336 points ahead of GDP data

Closing bell

Snapping its two-day record-setting streak, market benchmark BSE Sensex tumbled 336 points as investors turned jittery ahead of GDP data release.

After plummeting 466 points during the session, the 30-share Sensex pared some losses, ending 336.36 points or 0.82 per cent lower at 40,793.81. The broader NSE Nifty also settled 95.10 points or 0.78 per cent down at 12,056.05.

Yes Bank was the top loser in the Sensex pack, shedding 2.50 per cent, followed by HUL that fell 2.37 per cent, M&M 2.12 per cent, SBI 2.03 per cent, Tata Motors 2.03 per cent and Vedanta 1.97 per cent. On the other hand, Bharti Airtel, HDFC Bank and NTPC ended with gains.

Investors turned cautious ahead of Q2 gross domestic product (GDP) growth numbers, scheduled to be released later in the day, traders said. Experts are of the view that GDP growth for Q2 is expected to be lower than the 5 per cent in Q1. Weak cues from global markets also weighed on market mood, they added.

Bourses in Hong Kong, Tokyo, Kospi and Seoul ended in the red as US law supporting pro-democracy protesters in Hong Kong put a dampener on hopes of an early trade truce over tariffs. Stocks in Europe were trading on a positive note.

On the currency front, the rupee depreciated 17 paise (intra-day) against the US dollar to 71.79. Brent crude, the global oil benchmark, fell 0.79 per cent to USD 62.77 per barrel in futures trade. - PTI

European shares

The pan-European STOXX 600 index was down 0.4 per cent. File Photo

European shares edged lower for the second straight session on Friday, as investors feared a new US law backing protesters in Hong Kong would cloud the prospects of a preliminary Sino-US trade deal. The pan-European STOXX 600 index was down 0.4 per cent at 0806 GMT, but still on track for its best week in three after a boost from positive headlines on trade earlier in the week.  Read the European share markets report here

Good monsoon to boost wheat output

Wheat area, yield seen rising after ample rains. File Photo

India's wheat production could jump to a second consecutive annual record in 2020 as the wettest monsoon in 25 years is set to help farmers in expanding the area under the winter-sown crop while also boosting yields, industry officials.

India grew 102.19 million tonnes of wheat in 2019. The country received monsoon rains during the June-September season that were 10% above average and the rainfall continued during October and November, increasing soil moisture levels required for crop sowing. Click here to read more on the wheat production and India's suplus monsoon rains here

MCX-Zinc

The trend reversed in November and the price has dropped to the current market price of ₹189, there by losing 5 per cent. The price has been consolidating in the past few days, but the trend remains bearish.

The December futures contract of Zinc in MCX, like the spot price, has been falling since the beginning of November. The contract has dipped below both 21- and 50-DMAs, indicating a bearish outlook. Read the Zinc outlook here

Tea auctions

Subdued demand from blenders has impacted tea prices at the Kochi auctions this week, with the market for good liquoring varieties remaining steady to firm.

The prices, which rose by Rs 1 to Rs 2 as the sale progressed, were irregular and sometimes lower. Traders expect a drop in arrivals in the coming weeks as erratic weather continues to affect production in the high ranges, which is expected to push up prices. Read the tea auctions in Kochi report here

Sensex, Nifty in red

The 30-share BSE index Sensex was trading 335 points or 0.81 per cent lower at Rs 40,793.69 while the 50-share NSE index Nifty was trading 0.78 per cent or 94.60 points lower at 12,056.55.

The top gainers in the Sensex pack were Bharti Airtel, NTPC, Kotak Mahindra Bank, Maruti and IndusInd Bank while the laggards were Hindustan Unilever, State Bank of India, Mahindra & Mahindra, Reliance and Tata Motors.

In the broader index, the stocks of Infratel, Adani Ports, Bharti Airtel, Coal India and NTPC were leading the index were as the scrips in the negative zone were Dr Reddy's, Hindustan Unilever, State Bank of India, Hindalco and Yes Bank.

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Gold prices

Prices of the yellow metal in India's spot market are set to end November with a dip of about 2.4 per cent, as against a nearly 4-per cent rally in October - a festive month.

The futures reflected the global firmness in prices, which quoted at $1,457 an oz, up $4 from the previous close. During the month, CME Gold December futures had corrected by nearly 4 per cent from highs of $1,519 an oz at the beginning of November. Read more on the gold prices and the futures outlook here

Cardamom auctions

Cardamom market

Buoyancy in prices seems to have prompted sellers to liquidate their cardamom stock. The auction market has received the highest arrivals at 140 tonnes during the season that commenced in July.

The trend is likely to be strong and steady with the active participation of all stakeholders, including upcountry buyers and exporters. The delay in the Guatemalan crop season is also a contributing factor for boosting the demand for Indian varieties, traders said. Read more on the cardamom auctions during the morning session here

RCom hits upper circuit

Shares of  Reliance Communications  hit their upper circuit for the sixth consecutive session on Friday amid reports that  Bharti Airtel  has submitted conditional bids of around ₹9,500 crore for the debt-ridden firm’s assets.

On the BSE, the stock rose 3.85 per cent to 81 paise. The scrip advanced 5.26 per cent to Re 1 on the NSE. The shares have hit upper price band on the stock exchanges. Meanwhile, shares of Bharti Airtel were trading 2 per cent up at Rs 445.45 on the BSE.

Nifty Call

28/05/2019 MUMBAI: The new breand identity for Nifty Indices launch at the National Stock Exchange in Mumbai on May 28, 2019. Photo By. Paul Noronha

Taking bearish cues from the Asian markets, the Sensex and the Nifty started the session on a weak note and continued to decline.

The market breadth of the Nifty is biased towards declines. The India VIX is marginally hovering in the positive territory at around 14.03. The Nifty small cap index is resilient and has surged 0.79 per cent and Nifty mid-cap index is slightly up by 0.12 per cent. The Nifty metal index is the biggest loser declining 1.2 per cent. Nifty auto, FMCG and IT sectoral indices have slumped 1 per cent each. Read our Nifty Call for December futures here

Afternoon session

The 30-share BSE index Sensex slumped 359.76 points or 0.87 per cent to 40,770.41 and the 50-share NSE index Nifty dropped to 12,050.30, down 100.85 points or 0.83 per cent.

Yes Bank poised to outline crucial fund-raising plans

Yes Bank Ltd is expected to name the investors and the amount of money they will contribute after its board signs off on the plan at a meeting on Friday. Then it will be up to the Reserve Bank of India (RBI) to consider approving the arrangement.

Yes Bank shares have more than doubled since October 1, the best performance on the benchmark Sensex, giving it a market value of about $2.5 billion. The rally has pared its decline this year to about 61 per cent. The stocks of Yes Bank were trading 0.50 per cent higher at Rs 70.40. Read more on the fund raising plans and stock activity of Yes Bank here

Future Retail shares surge

Future Retail owns budget department store chain Big Bazaar. File Photo

Shares in  Future Retail Ltd  surged 13 per cent, after the Competition Commission of India (CCI) approved a deal that would give Amazon.com Inc a minority stake in one of the country's top retail groups.

Shares in Future Retail were higher nearly by 13 per cent by 11 in the BSE index. Shares in other Future Group companies - Future Enterprises Ltd, Future Consumer Ltd and Future Lifestyle Fashions Ltd - were higher by 2 per cent to 16 per cent. The stocks of Future Retail were trading 10.04 per cent higher at Rs 361.05.

Future Retail in August announced the deal that would result in the US online retail giant acquiring a 3.58 per cent stake in the company. Click here to read more on why the stocks of Future Retail were surging

Commodities market

Brent crude was down 5 cents at $63.82 a barrel. File Photo

Oil prices were steady in quiet trade with the US Thanksgiving holiday underway, while investors awaited a meeting of OPEC and its allies next week that may result in the extension of a production cut agreement to support the market.

Next week's meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, is high on investors' list of things to watch. Read the commodities market report here

Sensex slumps nearly 1%

The 30-share BSE index Sensex slumped nearly 1 per cent as investors turn cautious ahead of the GDP numbers set to be released by the CSO today.

The Sensex was trading 396.24 points or 0.94 per cent lower at 40,742.57 and the 50-share NSE index Nifty dropped 111.10 points or 0.91 per cent to 12,040.05.

In the 30-share index, the stocks of Bharti Airtel, NTPC and IndusInd Bank were alone trading in green, while the major losers were Hindustan Unilever, Tata Steel, ONGC, Reliance Industries and Asian Paints. Among the sectoral indices, barring telecom stocks (+2.58), all the major indices were trading in negative.

In the broader index, the major gainers were Yes Bank, Zee Entertainment, Bharti Airtel, Coal India and BPCL while the laggards were Infratel, Tata Steel, Vedanta, Reliance Industries and UPL.

GDP numbers

The GDP data will likely show that India’s economy had its weakest performance last quarter in more than six years, with the growth rate dropping below the symbolically important 5 per cent mark.

GDP growth rate in real terms was 7 per cent for the three-month period ending September 30 during the 2018-19 fiscal. The growth rate has since been sliding continuously with 6.6 per cent during October-December of FY19, 5.8 per cent during January-March of FY19 and further to 5 per cent during April-June of FY20. An economic recession signifies a drop in the GDP, while a slowdown is merely a decline in the growth rate of the GDP. Click here to read more on the expectations on the Q2 GDP numbers

Rupee market

At the interbank foreign exchange, the rupee opened at 71.63.

The Indian rupee opened on a weak note and fell 11 paise to 71.73 against the US dollar in early trade on Friday, as investors traded the cautious path ahead of the release of GDP data. At the interbank foreign exchange, the rupee opened at 71.63 then fell to 71.73 against the US dollar, showing a decline of 11 paise over its previous closing. The Indian rupee on Thursday had closed at 71.62 against the US dollar. Click here to read more on the local currency market

ICICI Securities stocks up

Shares of  ICICI Securities  jumped nearly 5 per cent in early trade after the company settled charges of alleged violation of stock broker norms, without admission or denial of any wrongdoing, with markets regulator SEBI.

In a case of fraudulent trading by bogus entities through several brokerage houses, ICICI Securities has settled charges of alleged violation of stock broker norms without admission or denial of any wrongdoing with markets regulator SEBI. Read more on the stock activity of ICICI Securities here

Daily rupee call

The rupee (INR) weakened and closed at 71.6 after making an intraday low of 71.67 against the dollar (USD). Since it has not closed below the key support at 71.6, the chance of further depreciation is low.  On the back of the support, the rupee may advance from current level. On the upside, the resistance is at 71.4 and 71.2. However, if the Indian currency slips below 71.6, it could attract more bears and decline to 71.88 and 72. Read our daily rupee call here

Shares slip

The shares lost ground on expectations of slower economic growth in the September quarter and as rising uncertainty over a Sino-US trade deal hurt demand for risk assets.

The NSE Nifty 50 index was down 0.64 per cent or 77.85 points at 12,073.30, while the S&P BSE Sensex fell 0.72 per cent or 296.32 to 40,833.85.

India's economy was seen growing at 4.7 per cent in the quarter to September, its weakest pace in more than six years, according to a Reuters poll published on Thursday. The data is scheduled to be released later on Friday.

The country's economic growth had slowed to 5 per cent in the previous quarter, due to decelerating demand and falling exports, prompting a raft of actions from the government, including a corporate tax cut in September.

Broader Asian markets were also lower as investors feared that a new US law backing Hong Kong protests could derail efforts to end the US-China trade war. The MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.9 per cent.

In India, metal stocks were the biggest losers in early trade, with the Nifty Metals index falling 0.6 per cnet. Sector heavyweight Tata Steel dropped 1.7 per cent.

Banks were also among the biggest drags. The Nifty bank index, which tracks both state-owned and private-sector lenders, fell 0.34 per cent. Generic drugmaker Dr Reddy's was among the top losers on the Nifty, shedding 1.5 per cent, while Bharti Infratel advanced 8.81 per cent and topped the gainers on the index.

Future Retail rose 14 per cent after the Competition Commission of India (CCI) approved the acquisition of the company by Amazon.com. - Reuters

Aurobindo Pharma to buy R&D assets of US based

Auro Vaccines LLC, an arm of  Aurobindo Pharma Ltd, has entered into a pact to acquire certain business assets from Profectus BioSciences Inc., US for an upfront cash consideration of $11.29 million (around ₹80 crore).

The stocks of Aurobindo Pharma were trading 1.07 per cent higher at Rs 455.

Forex market

Dollar tracks toward highest weekly close vs yen since May. File Photo

The dollar headed for its highest weekly finish against the safe-haven yen since May, as data showing the US economy on a firm footing prompted investors to scale back rate-cut bets. On Friday, the dollar was steady at 109.51 Japanese yen , and if it holds there will post a 0.7 per cent gain for the week and hit its highest weekly close since May 31. Overnight trade was light with US desks closed for Thanksgiving.

The British pound has been the week's other main beneficiary, adding half a percentage point as Prime Minister Boris Johnson's Conservative Party has firmed in opinion polls ahead of the December 12 election. Read the global forex market report here

Sensex falls over 200 points ahead of GDP data

Market benchmark BSE Sensex dropped over 200 points in early trade tracking losses in index-heavyweights RIL and ICICI Bank ahead of quarterly GDP growth data release.

Retreating from its lifetime peak scaled in the previous session, the 30-share index was trading 233.11 points, or 0.57 per cent, lower at 40,895.37 in morning session. Similarly, the broader NSE Nifty was quoting 56.90 points, or 0.47 per cent, down at 12,094.25.

Yes Bank was the top gainer in the Sensex pack, rising up to 4 per cent, followed by Bharti Airtel, Tata Motors, Tech Mahindra, NTPC and Axis Bank. On the other hand, Tata Steel, ICICI Bank, Kotak Bank and Infosys were trading in the red.

On Thursday, the Sensex rose to an all-time high (intra-day) of 41,163.79 before setting up by 109.56 points or 0.27 per cent at 41,130.17 -- its record closing high. The Nifty too closed at a fresh life-time high of 12,151.15, up by 50.45 points or 0.42 per cent over the previous close.

Foreign institutional investors bought shares worth Rs 1,008.89 crore in the capital market in the previous session, while domestic institutional investors sold equities worth Rs 155.47 crore, data available with stock exchange showed.

Investors booked profits at higher levels ahead of Q2 gross domestic product (GDP) growth numbers, scheduled to be released later in the day, traders said. According to experts, GDP growth for Q2 is expected to be between 4.2 per cent and 4.7 per cent, slower than the 5 per cent in Q1.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading on a negative note as US’ law supporting pro-democracy protesters in Hong Kong put a dampener on hopes of an early trade truce over tariffs.

On the currency front, the rupee depreciated 9 paise against the US dollar to trade at 71.71 in early session. Brent futures, the global oil benchmark, fell 0.40 per cent to USD 63.02 per barrel. - PTI

Global markets

MSCI All Country world index, which tracks shares in 49 countries, were up 0.08 per cent

Asian markets slipped leaving global shares just short of an all-time peak as investors turned cautious, fearing a new US law backing Hong Kong protesters could torpedo efforts to end the US-China trade war.

MSCI All Country world index, which tracks shares in 49 countries, were up 0.08 per cent at 548.88, only 0.3 per cent away from all-time peak hit in January last year before the start of US-China trade war. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.9 per cent. Hong Kong led the losses, dropping 2 per cent. Read the global stock markets report here

Morning session

After opening marginally higher, the BSE index Sensex slipped 144.26 points or 0.35 per cent to 40,985.91, while the NSE index Nifty opened in red and is trading 34.85 points or 0.29 per cent lower at 12,116.30 in the morning session.

The second-quarter GDP growth numbers are likely to be realesed on Friday. In the June quarter, the economy expanded 5 per cent, its slowest annual pace in six years. Analytst predict that the Q2 numbers to not be any better. The National Statistical Office (NSO) will release the numbers.

The top gainers in the Sensex pack were Yes Bank, Bharti Airtel, Tata Motors, NTPC, and Tech Mahindra while the laggards were Tata Steel, ICICI Bank, Kotak Mahindra Bank, L&T and Hindustan Unilever.

In the broader index, the scrips lending support were Yes Bank, Zee Entertainment, Bharti Airtel, Coal India and BPCL while the stocks leading the negative territory were Infratel, Tata Steel, Vedanta, Reliance and UPL.

Stocks in focus

Tata Power Company is looking to sell a stake in its renewable energy portfolio to global investors, its chief executive Praveer Sinha said, according to a Reuters report. The company is examining the option of bringing in global investors through an infrastructure investment trust (InvIT), Sinha said, adding that the funds would help the company reduce debt. It will be a private InvIT, Sinha said, and added that will attract some global players who are long-term investors.

CG Power and Industrial Solutions has rescinded the royalty agreement with Avantha Holdings. The agreement had envisaged 50 per cent of the brand royalty payable to AHL in perpetuity aggregating to ₹411.20 crore for part-settlement of outstanding loans and reducing the regular royalty payments to 0.50 per cent of its annual consolidated net operating revenues. Following this, CG Power does not have any liability towards brand royalty, including the monetisation proposal.

Shares of IL&FS Engineering and Construction Company may remain in focus, as the Arbitration Tribunal has awarded a verdict in favour of its special purpose vehicle. The Tribunal has awarded ₹492 crore (₹250 crore as principal and ₹242 crore as interest) for the claim filed against NHAI by Bangalore Elevated Tollway Private Ltd. IL&FS Engineering and Construction holds 24 per cent stake in Bangalore Elevated Tollway, a sponsored SPV along with India Infrastructure Fund 2.

Opening bell

The 30-share BSE Index Sensex opened 8.09 points at 41,138.26 against the previous close of 41,130.17. Meanwhile, the 50-share NSE Nifty opened 28.2 points lower at 12,122.95 against the previous close of 12,151.15.

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:

₹1265 • HDFC Bank

₹701 • Infosys

₹246 • ITC

₹133 • ONGC

₹1579 • Reliance Ind.

₹348 • SBI

₹2077 • TCS

12145 • Nifty 50 Futures

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

Today's stock pick

We recommend a buy in the stock of Union Bank of India at the current levels of Rs 64.8. Following a medium-term downtrend, the stock began to consolidate sideways in early September. The sideways consolidation phase over the past three months has taken shape of complex inverse head and shoulders pattern with neck-line at around ₹60. Read our stock recommendation of Union Bank of India here

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