Sensex drops 126 points, weighed down by losses in metal stocks

Nifty slips 54 points to close below 12,000 level

 

3:45 pm

Closing bell

The BSE benchmark Sensex on Tuesday fell over 126 points, dragged mainly by losses in metal stocks, tracking weak global sentiments in the wake of the slapping of tariffs by the US on imports from Brazil and Argentina.

The 30-share BSE gauge settled at 40,675.45, down 0.31 per cent or 126.72 points. The index swung between a high of 40,885.03 and a low of 40,554.04 during the day.

The broader NSE Nifty settled at 11,994.20, showing a dip of 0.45 per cent or 54 points.

In view of a fresh tussle in global trade, metal stocks came under pressure. Besides, banking stocks saw selling pressure as investors took a cautious stance ahead of the RBI monetary policy meet.

On the Sensex chart, YES Bank was the worst hit, showing a 7.81 per cent decline. It was followed by Tata Steel, Vedanta, M&M, IndusInd Bank and Tata Motors -- shedding as much as 5.07 per cent.

On the other hand, Bajaj Auto, TCS, Kotak Bank, Infosys and HDFC were among the major gainers. - PTI

3:00 pm

European shares attempt recovery as new trade war front opens

 

European shares opened higher on Tuesday, attempting to claw their way back from three days of falls though the mood remained gloomy after US President Donald Trump showed he was ready to open new trade war fronts despite signs of economic damage.

The US has threatened duties of up to 100 per cent on French goods, while Trump tweeted he would slap tariffs on Brazil and Argentina attacking what he saw as both countries' “massive devaluation of their currencies.” Click here to read in full the European markets report.

2:40 pm

Euro holds gains versus dollar

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

 

The euro and Japanese yen on Tuesday largely held gains made against the dollar this week after disappointing manufacturing data and signs of new fronts in  US President Donald Trump's trade war rattled greenback investors.

Moves in the currency markets were broadly contained, however, with volatility remaining low and investors not appearing to take much fright at news of  US tariffs on imports of metals from Argentina and Brazil and the threat of more tariffs on a range of European goods. Click here to read in full the global forex markets report.

2:00 pm

Oil rises as Saudi Arabia pushes for further supply cuts

 

Oil prices gained on Tuesday, as hopes rose for OPEC and its allies to agree to deeper output cuts when they meet this week, although gains were limited, amid some analysts' scepticism over the achievement of further reductions.

Brent futures rose 17 cents, or 0.3 per cent, to $61.09 a barrel by 0516 GMT, after having gained 0.7 per cent on Monday. US West Texas Intermediate crude was up 25 cents, or 0.5 per cent, at $56.21 a barrel. The contract rose 1.4 per cent on Monday. Click here to read in full the oil markets report.

 

1:35 pm

Nifty call: Sell with stop-loss at 12,065

 

Taking cues from the Asian market, the Indian benchmarks are on a decline today. Both the Nifty spot index and the Sensex spot index are down by 0.6 per cent. Nikkei has declined by 0.6 per cent whereas the Hang Seng is trading lower by 0.2 per cent today. Moreover, the US market traded negative with all major indices closing with loss yesterday.

The market breadth of the Nifty 50 index hints bearish bias as advance-decline ratio stands at 11-39. India VIX, the volatility index has spiked by a significant 10 per cent to 15.6 levels. Thus, market breadth and volatility index indicate clear bearish bias. Click here to read in full the Nifty call report.

12:58 pm

Asian stocks drop on Trump's new tariffs

Japan's Nikkei shed 0.61 per cent. File Photo   -  Bloomberg

Asian shares fell on Tuesday after US President Donald Trump stunned the markets by imposing tariffs on imports from Brazil and Argentina, rekindling fears over global trade tensions, while weak US factory data added to the investor gloom.

But European shares, which had also slumped following Trump's tariff announcement, were expected to rise on Tuesday.

The pan-region Euro Stoxx 50 futures were up 0.41 per cent in early trades, while German DAX futures added 0.45 per cent and the FTSE futures gained 0.26 per cent. Click here to read in full the Asian markets report.

12:35 pm

Sensex, Nifty extend losses

The benchmark indices, the BSE Sensex and the NSE Nifty, extended their losses in the mid-session on Tuesday.

The Sensex dropped 188 points or 0.46 per cent to 40,613, while the Nifty slipped 64 points or 0.54 per cent to 11,983.

The top gainers on the Sensex were Bajaj Auto, HeroMotoCorp, Tech Mahindra, Maruti and TCS. The laggards were Tata Steel, YES Bank, Vedanta, Bharti Airtel and Axis Bank.

On the BSE sectoral index, consumer durables shares gained 0.56 per cent, and IT sector shares rose 0.53 per cent.

Telecom sector shares dropped sharply by more than 3 per cent, while metal sector shares were down over 2 per cent, basic materials down 1.60 per cent and industrials 1.43 per cent.

12:25 pm

Bharti Airtel shares slip over 1 per cent on rating concerns

 

After hitting a 52-week high in the previous session, shares of Bharti Airtel on Tuesday fell over 1 per cent after Moody’s said AGR dues are credit negative for the telecom operator. The stock was trading 1.32 per cent down at Rs 452.50 on the BSE. On the NSE, the stock declined 1.46 per cent to Rs 451.90.

Adjusted gross revenue dues on Bharti Airtel are credit negative for the telecom operator despite a two-year moratorium given by the government on spectrum payment and the firm’s plan to raise mobile call and data charges, credit rating agency Moody’s Investors Service said on Monday. Click here to read in full the Bharti Airtel share price report in full.

 

12:10 pm

US stocks retreat on economy and trade jitters

 

Wall Street stepped back from last week's record highs on Monday, with weak US manufacturing data and fresh trade worries keeping buyers on the sidelines. All three major US stock averages began the last month of the year in the red as investors returned from the long holiday weekend.

A report from the Institute for Supply Management (ISM) showed US manufacturing activity contracted in November for the fourth consecutive month, stoking concerns that the longest period of economic expansion in US history could be losing steam. Click here to read in full the US markets report.

 

11:50 am

Dollar falls as factory data sparks economy concern

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

 

The dollar traded near a one-week low versus the yen on Tuesday and near the lowest in almost two weeks against the euro, on concern about weak US manufacturing data and signs of new fronts in the US trade war.

Sentiment also took a hit after US President Donald Trump announced tariffs on metal imports from Brazil and Argentina. Click here to read in full the forex markets report.

11:35 am

DHFL shares fall nearly 5 per cent after NCLT admits RBI’s petition

Shares of Dewan Housing Finance Corporation on Tuesday fell nearly 5 per cent to hit the lower circuit after NCLT admitted the RBI’s petition to initiate insolvency proceedings against the mortgage firm.

Shares of the troubled firm fell 4.82 per cent to trade at Rs 18.75 on the BSE. On the NSE, the stock fell 4.81 per cent to Rs 18.80.

The National Company Law Tribunal (NCLT) on Monday admitted the Reserve Bank’s petition to initiate insolvency proceedings against mortgage player DHFL, making it the first financial services firm to be resolved through the bankruptcy code.

The move came in after the Reserve Bank last Friday referred DHFL to the NCLT Mumbai to resolve the debt crisis at the third largest pure-play mortgage player, which owes close to Rs 1 lakh crore to the system, mostly to banks and retail investors of its debt instruments.

11:25 am

Biocon rises 5 per cent after launch of Ogivri in US market

 

Shares of Biocon on Tuesday gained nearly 5 per cent in early trade after the company, along with its partner Mylan, announced the launch of biosimilar Ogivri in the US market.

The stock was trading 1.28 per cent up at Rs 289.60 on the BSE. During early market hours, the stock went up by 4.80 per cent to Rs 299.70.

On the NSE, the scrip was up by 1.56 per cent to Rs 290.25. It gained as much as 4.61 per cent to touch a high of Rs 299 in early trade.  Click here to read in full the Biocon share price report.

11:05 am

Rupee rises 8 paise to 71.58 against the dollar in early trade

 

The rupee on Tuesday appreciated by 8 paise to 71.58 against the US dollar, as investors were hopeful that the Reserve Bank will go for another rate cut to boost economic growth.

Forex traders said the domestic unit is trading in a narrow range ahead of the RBI monetary policy decision on Thursday.

At the interbank foreign exchange market, the rupee opened at 71.66, then gained some momentum and touched a high of 71.58 against the dollar, showing a rise of 8 paise over its last close. Click here to read in full the rupee report.

10:45 am

Sensex, Nifty edge lower

The benchmark indices, the BSE Sensex and the NSE Nifty, edged lower in morning trade on Tuesday. The Sensex dropped 105 points or 0.26 per cent to 40,696, while the Nifty slipped 39 points or 0.33 per cent to 12,008.

The top gainers on the Sensex were Bajaj Auto, HeroMotoCorp, Tech Mahindra, Maruti and TCS. The laggards were Tata Steel, YES Bank, Vedanta, Bharti Airtel and Axis Bank.

According to an agency report, the equity benchmark Sensex fell over 65 points in early trade on Tuesday, in line with global market sell-offs, as investors panicked after the US decision to impose tariffs on Argentina and Brazil.

The fresh trade war tensions along with unabated foreign fund outflows weighed heavily on market sentiments, traders said.

On Monday, the Sensex closed marginally higher by 8.36 points or 0.02 per cent at 40,802.17. On the other hand, the broader NSE Nifty settled 7.85 points or 0.07 per cent down at 12,048.20.

US President Donald Trump on Monday said he would re-impose steel and aluminium tariffs on Brazil and Argentina. He alleged that both the countries are manipulating their currencies and hurting American farmers.

The US also threatened to impose tariffs of up to 100 per cent on French goods in retaliation for digital services tax.

These developments triggered fresh tension among investors, particularly on spillover concerns over the US-China trade war.

Asian markets fell on Tuesday as global trade tensions surfaced again after the US decision to impose tariffs on the South American countries.

Bourses in Hong Kong, Seoul, Shanghai and Tokyo were trading in negative zone. Stocks on Wall Street ended on a negative note on Monday.

Foreign institutional investors sold shares worth Rs 1,731.33 crore in the capital market in the previous session, while domestic institutional investors bought equities worth 753.99 crore, data available with stock exchange showed.

On the currency front, the rupee appreciated 8 paise against the US dollar to trade at 71.58 in early session.

Brent futures, the global oil benchmark, surged 0.31 per cent to USD 61.11 per barrel. (with inputs from PTI)

 

10:20 am

Daily Rupee call: Initiate long above 71.6

 

On Monday, the rupee (INR) strengthened marginally as it closed the session at 71.66 versus its previous day close of 71.73 against the dollar (USD). Thus, the Indian currency ended the session within the range between 71.6 and 71.8.

If rupee moves beyond 71.6, it will most likely appreciate to the immediate hurdle at 71.4; whereas, if it weakens from current level, it may depreciate to 71.88. Click here to read in full the Daily rupee call.

10:00 am

Asian stocks drop as Trump's Brazil, Argentina tariffs revive trade angst

Japan's Nikkei shed 0.61 per cent. File Photo   -  Bloomberg

 

Asian shares tumbled on Tuesday after US President Donald Trump stunned the markets with tariffs against imports from Brazil and Argentina, recharging fears about global trade tensions, while weak US factory data added to the investor gloom. Click here to read in full the Asian markets report.

9:50 am

Oil rises for a second day as Saudi Arabia pushes supply cut

 

Oil prices rose for a second day on Tuesday as Saudi Arabia, the de facto OPEC leader and the world's biggest oil exporter, is pushing producers to deepen a supply cut agreement when suppliers meet this week, potentially lowering supply in 2020.

Brent futures rose 19 cents, or 0.3 per cent, to $61.11 a barrel by 0218 GMT, after gaining 0.7 per cent on Monday.

US West Texas Intermediate crude was up by 21 cents, or 0.4 per cent, at $56.17 a barrel. The contract rose 1.4 per cent on Monday. Click here to read in full the oil markets report.

9:35 am

What to Watch: Will a new bus order drive up Tata Motors?

Tata Motors on Monday bagged an order for over 2,300 buses from various state transport undertakings (STUs). The company is working to complete deliveries of the buses by February. The orders are from STUs of Rajasthan, Karnataka, Uttar Pradesh, Tamil Nadu and Andhra Pradesh. This bodes well for the company at a time it is struggling on the sales front. For November, it reported a drop of 25 per cent in domestic sales volumes for both passenger and commercial vehicles.

Lasa Supergenerics: Open offer in focus

Shares of Lasa Supergenerics will remain in focus in the markets, as an open offer made by Omkar Pravin Herlekar, promoter, is currently on.

The promoter plans to acquire up to 1.05 crore shares, representing 26 per cent of the emerging voting share capital, from eligible equity shareholders at ₹18.25 a share. The offer is mandatory as a preferential issue to Herlekar has increased his stake in the company to 63.23 per cent from 34.60 per cent. The offer ends on December 13.

New order worth ₹243 cr may buoy NCC

NCC on Monday said it has received a new order for ₹243 crore (exclusive of GST) in November. The order pertains to the roads division and has been received from a State Government agency and does not include any internal order, NCC further said.

The project needs to be executed within 60 months from the date of award. Shareholders will closely monitor the developments. As on November 27, Nippon India MF sold 42.48 lakh shares of NCC through various schemes.

9:15 am

Opening bell

The BSE Sensex and the NSE Nifty opened Tuesday's session little changed from their Monday close. The Sensex was at 40,801, down 35 points or 0.09 per cent lower, while the Nifty was flat at 12,049.

 

9:10 am

Day Trading Guide for December 3, 2019

₹1265 • HDFC Bank

S1

S2

R1

R2

COMMENT

1250

1235

1277

1290

Consider initiating fresh short positions with a stiff stop-loss only if the stock declines below ₹1,250 levels

 

₹692 • Infosys

S1

S2

R1

R2

COMMENT

680

670

702

710

Fresh short positions are recommended with a fixed stop-loss if the stock of Infosys falls below ₹680 levels

 

₹244 • ITC

S1

S2

R1

R2

COMMENT

241

238

247

250

Near-term stance is bearish for the stock of ITC. Sell in rallies while maintaining a stop-loss at ₹247 levels

 

₹128 • ONGC

S1

S2

R1

R2

COMMENT

125

122

131

134

As long as the stock of ONGC trades below ₹131, the near-term view remains bearish. Sell in rallies

 

₹1586 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1570

1555

1600

1615

Fresh short positions can be initiated with a tight stop-loss only if the stock drops below ₹1,570 levels

 

₹338 • SBI

S1

S2

R1

R2

COMMENT

332

324

344

351

Make use of intra-day rallies to initiate fresh short positions with a stiff stop-loss at ₹344 levels

 

₹2020 • TCS

S1

S2

R1

R2

COMMENT

2000

1980

2040

2060

Initiate fresh long positions with a tight stop-loss only if the stock of TCS rebounds up from ₹2000 levels

 

12091 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

12050

12000

12140

12190

Fresh short positions can be initiated with a tight stop-loss only if the contract declines below 12,050 levels

 

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

9:00 am

Today's Pick: Escorts (₹662.5): Buy

The stock of Escorts gained 3.9 per cent accompanied by above average volume on Monday and closed above the 21-day moving average. This rally provides investors with a short-term horizon an opportunity to buy the stock at current levels.

Since registering a 52-week low at ₹423 in late August this year, the stock has been in a medium-term uptrend. With the key support at around ₹630 cushioning the stock, it moved above this level over the past one-and-a-half month. The level of ₹630 will continue to act as a significant base. The stock hovers well above its 50- and 200-day moving averages. Click here to read in full Today's Pick on Escorts.

 

 

Published on December 03, 2019