The benchmark indices ended higher after a roller-coaster session on Wednesday. After starting the day in the green, the indices sharply pared gains and hit the day's low in mid-afternoon trade. Strong buying support in the final hour of trade, pushed the Nifty above 11,900 mark.

The barometer index, the BSE Sensex, rose 172.69 points or 0.43% to end at 40,412.57, jumping off day's low of 40,135.37.

The Nifty 50 index rose 53.35 points or 0.45% to settle at 11,910.15. It hit the day's low of 11,832.30.

The recovery was broad based. The S&P BSE Mid-Cap index rose 0.52% and the S&P BSE Small-Cap index rose 0.01%.

The market breadth was negative. On BSE, 1006 shares advanced while 1472 shares declined. A total of 194 shares were unchanged.

Trading sentiment took a hit in intraday trade after the Asian Development Bank (ADB) lowered India's growth forecast.

Traders focused on the outcome of US Federal Reserve's policy meeting and its outlook for the economy. The Fed's two day meeting began on Tuesday, 10 December 2019 and the interest rate decision will be announced later in the global day today, 11 December 2019. The Fed is widely expected to keep interest rates on hold at 1.50-1.75%.

Back home, India's industrial production (IIP) data for October 2019 and India's retail price inflation data for November 2019 will be announced on Thursday, 12 December 2019.

India's wholesale price-based inflation (WPI) data for November 2019 will be unveiled on Friday, 13 December 2019.

Economy:

ADB on Wednesday announced it trimmed its forecasts for economic growth in developing Asia this year and next year as growth in the People's Republic of China (PRC) and India is weighed down by both external and domestic factors.

India's growth is now seen at a slower 5.1% in fiscal year 2019 as the foundering of a major non-banking financial company in 2018 led to a rise in risk aversion in the financial sector and a credit crunch. Also, consumption was affected by slow job growth and rural distress aggravated by a poor harvest. Growth should pick up to 6.5% in fiscal year 2020 with supportive policies. In September, ADB forecast India's GDP to grow 6.5% in 2019 and 7.2% in 2020.

Key Numbers:

The yield on 10-year benchmark federal paper rose to 6.749% at 16:30 IST compared with 6.703% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 70.8675, compared with its close of 70.9250 during the previous trading session.

In the commodities market, Brent crude for February 2020 settlement fell 32 cents at $64.02 a barrel. The contract rose 9 cents or 0.14% to settle at $64.34 a barrel during the previous trading session.

Buzzing Sectors:

The Nifty IT index rose 1.23% to 15,130.30 on bargain hunting. The index fell 2.74% in the past three sessions.

Mindtree (up 2.25%), Tech Mahindra (up 1.97%), TCS (up 1.43%), Hexaware Technologies (up 1.21%), Infosys (up 0.92%), Persistent Systems (up 0.79%), Wipro (up 0.78%) and Oracle Financial Services Software (up 0.29%) advanced.

The Nifty Metal index fell 0.25% to 2,509.55, as uncertainties on the US-China trade war front continued to persist. The index has fallen 1.65% in two sessions.

Hindustan Copper (down 3.07%), Vedanta (down 1.63%), NALCO (down 1.28%), Hindalco Industries (down 1.13%), JSW Steel (down 0.44%), Hindustan Zinc (down 0.39%) and SAIL (down 0.13%) declined.

NMDC (up 1.55%) and Tata Steel (up 0.80%) advanced.

Jindal Steel & Power (JSPL) rose 2.45% after the company said it commissioned its fourth coke oven battery at Angul steel plant in Odisha, making it self-sufficient in coke requirement.

Stocks in Spotlight:

Yes Bank slumped 15.33% to Rs 42.80 after the bank's board further delayed decision on new investors.

On Tuesday, Yes Bank said it is considering a $500 million investment offer from London-based Citax Holdings and Citax Investment Group.

The private lender also said the $1.20 billion bid by Erwin Braich-SGPG group is still under evaluation and a final decision on the investment will be taken at its next board meeting. The lender did not give a time frame for the next board meeting.

Reliance Industries (RIL) rose 0.03% to Rs 1562.60 after the company signed an agreement with state-owned Abu Dhabi National Oil Company (ADNOC) to explore a joint venture for building an ethylene dichloride (EDC) facility in Ruwais.

Bharti Airtel slipped 1.17% to Rs 441.80. The telecom company said it will seek approval of its shareholders to raise capital through qualified institutional placement (QIP), foreign currency convertible bonds (FCCBs) and non-convertible debentures (NCDs) on 3 January 2020.

The aggregate amount of proceeds in one or more issuances or tranches shall not exceed overall limit of $4 billion or its equivalent in Indian rupees or in other currency out of which, an amount up to $3 billion shall be raised by the company on immediate basis, the company said.

IDBI Bank rose 0.75% to Rs 33.75. The bank said it will sell up to 49% stake in its subsidiaries, IDBI Capital Markets & Securities and IDBI Intech.

HDFC Asset Management Company (HDFC AMC) rose 4.77% to Rs 3028.85 after a foreign brokerage initiated coverage on the stock with a 'Buy' rating and a price target of Rs 3,435. The brokerage reportedly stated that the company is in a good position to capture positive changes in the Indian AMC industry. It is set to provide a high return on equity (RoE) business and investors may expect a dividend payout ratio of 80% during FY 2020-22. HDFC AMC was also able to weather out regulatory challenges successfully over a period, it added.

HDFC AMC tanked 15.99% in the past five trading sessions to settle at Rs 2,890.90 yesterday, 10 December 2019, from its close of Rs 3,441.45 on 3 December 2019. The company's promoter, Standard Life Investments, concluded its offer for sale (OFS) last week. It sold 3.10% stake via OFS. The floor price for the sale was set at Rs 3,170 per equity share.

CSB Bank fell 7.17% to Rs 240.75, extending its losses for fifth session. It hit a record low of Rs 238.20 in intraday today. Shares of the Kerala-based bank have tumbled over 19% in just five trading sessions since listing on bourses on 4 December 2019. Profit booking at higher levels and overall weak sentiment in market has pulled the stock lower.

The stock debuted on 4 December 2019 at Rs 275, a premium of 41.02% to the initial public offer (IPO) price of Rs 195. The stock hit its record high of Rs 314.2 on 5 December 2019.

Adani Transmission rose 1.74% to Rs 342.05. Adani Transmission (ATL), Adani Electricity Mumbai (AEML) and a subsidiary of Qatar Investment Authority (QIA) have signed definitive agreements for the sale of a 25.1% stake in AEML to QIA and for a shareholder subordinated debt investment by QIA in AEML (the transaction). The total QIA investment in AEML will be approximately Rs 3,200 crore (equivalent to approximately $450 million).

Foreign Markets:

Shares in Europe traded mostly lower while stock markets in Asia closed mixed on Wednesday ahead of the U.S. Federal Reserve's interest rate decision due later in the day stateside.

Developments on the U.S.-China trade front were also watched as Sunday inches closer, when more tariffs on Chinese exports to the U.S. are set to kick in. That comes as markets have been expecting a phase one trade deal to be reached between Washington and Beijing.

As per reports, the U.S. plans to delay slapping China with additional tariffs as both sides try to work out the agreement.

U.S. negotiators have also asked Chinese officials to commit to some agricultural purchases upfront before moving forward with a deal, the report added. Meanwhile, China wants its agricultural purchases to be proportional with the amount of tariffs the U.S. rolls back. The U.S. is also reportedly pushing for a quarterly review of the promised purchases.

Saudi Aramco Debut:

Saudi Arabia's energy giant Saudi Aramco saw a blockbuster debut on Riyadh-based stock exchange on Wednesday, 11 December 2019. The stock debuted at a premium of 10% at 35.20 riyal.

Earlier this month, the Saudi government raised $25.6 billion by selling a 1.5% stake in state-owned Aramco at 32 riyal each. The IPO received total bids of $119 billion.

Funds from the sale will be transferred to the Public Investment Fund, which will help diversify the kingdom away from dependence on oil and create jobs for a growing population.

In August 2019, Saudi Aramco signed a non-binding letter of intent to acquire a 20% stake in the oil to chemicals division of Reliance Industries (RIL) valued at an enterprise value of $75 billion.

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