Key equity market barometers ended with small gains after a volatile session on Monday. After initial losses, the market bounced back in early afternoon trade supported by gains in HDFC and Reliance Industries.

The barometer index, the BSE Sensex, rose 42.28 points or 0.10% to 40,487.43. The Nifty 50 index rose 16 points or 0.13% to 11,937.50.

Gains were capped as IHS Markit expects India's real GDP growth in 2019-20 fiscal to be slightly below 5%. Sentiment was also fragile as the Reserve Bank of India (RBI) unexpectedly left interest rates unchanged on Thursday. The move was driven by the rising inflationary pressure and gradual improvement in monetary transmission.

In the broader market, the S&P BSE Mid-Cap index rose 0.11% and the S&P BSE Small-Cap index fell 0.44%.

The market breadth was negative. On BSE, 1044 shares advanced while 1448 shares declined. A total of 178 shares were unchanged.

Economy:

India's real GDP growth in 2019-20 fiscal is expected to be slightly below 5% as the impact of stimulus measures will take time to filter through to the economy, IHS Markit has said. Financial sector fragilities continue to weigh on India's economic growth momentum, with the high level of non-performing loans on the balance sheets of the public sector banks, constraining their new lending, IHS said in a report.

Crude and Currency:

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 71.045, compared with its close of 71.20 during the previous trading session.

In the commodities market, Brent crude for February 2020 settlement fell 58 cents at $63.81 a barrel. The contract fell 23 cents or 0.36% to settle at $64.16 a barrel during the previous trading session.

Buzzing Index:

The Nifty Auto index rose 0.80% to 7,868.80 on bargain hunting. The index fell 2.37% in past two sessions.

Ashok Leyland (up 1.11%), Hero MotoCorp (up 0.66%), Mahindra & Mahindra (up 0.66%), Bajaj Auto (up 0.63%) and Eicher Motors (up 0.47%) advanced. TVS Motor Company (down 0.84%) and Escorts (down 0.89%) declined.

Car major Maruti Suzuki India rose 1.68% to Rs 6997.25. The car major's total production rose 4.3% to 1.41 lakh units in November 2019 from 1.35 lakh units in November 2018. The announcement was made after market hours on Friday, 6 December 2019.

Tata Motors slipped 0.59% to Rs 160.55. Jaguar Land Rover (JLR) retail sales in November 2019 were 46,542 vehicles, down 3.4% compared to November 2018. Sales continued to improve in China and North America while in the UK, Europe and overseas market (comprising largely of Russia and MENA) fall in sales continued to linger.

Stocks in Spotlight:

HDFC (up 2.06%), Reliance Industries (up 1.13%) and ICICI Bank (up 0.35%) advanced.

TCS (down 2.93%), L&T (down 1.04%) and Kotak Mahindra Bank (down 0.92%) declined.

HDFC Asset Management Company (HDFC AMC) slumped 6.21% to Rs 2984.50. 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.

Axis Bank advanced 2.01% to Rs 731.95. Jairam Sridharan has resigned from the post of group executive and chief financial officer, the lender informed bourses on Friday. The private sector bank said Sridharan would like to pursue other career opportunities and as such has resigned from the services of the bank.

Multi Commodity Exchange of India (MCX) fell 3.18% to Rs 1102.05 after the company's Chief Financial Officer, Sanjay Wadhwa, resigned from the post with effect from 6 December 2019.

Goa Carbon advanced 2.42% higher at Rs 207.45 after the company disclosed its operational performance for November 2019. The company's total calcined petroleum coke production was 15,413.90 MT in November 2019, up 596.48% compared with total production of 2,213.10 MT in November 2018.

The total calcined petroleum coke production was up 33.06% in November 2019 over 11,584 MT in October 2019.

Shaily Engineering Plastics tumbled 8.90% to Rs 578.90 after the Goods and Service Tax (GST) authorities carried out search proceedings at the company's Rania unit in Gujarat. The company stated that the authorities have seized some moulds belonging to the company as well its customers as part of the process which is being contested. There has not been any case of evasion of any duty which has been established as of now and the company has not received any show cause notice from the authorities till date.

JSW Steel gained 1.85% to Rs 258.75. The company's crude steel production fell 7% to 12.90 lakh tones in November 2019 from 13.90 lakh tones in November 2018. The company showed a sequential month on month growth of 3% in crude steel production.

The blast furnaces, which were temporarily shut down in October, 2019 due to slowdown in auto demand has recommenced operations in the last week of November, 2019, JSW Steel said in an exchange filing.

Sun Pharma Advanced Research Company (SPARC) surged 5.73% to Rs 162.50. SPARC announced that Abraxis Bioscience LLC. has dismissed the patent infringement complaint filed against SPARC regarding SPARC's new drug application for PICS (Paclitaxel injection concentrate for suspension).

Coffee Day Enterprises slumped 8.84% to Rs 43.85. Media reports suggested that The company's sale of its technology park to Blackstone Group is stalled as one of its creditors hasn't approved the deal. Yes Bank hasn't issued the so-called no objection certificate as it's seeking assurances on repayments of other loans taken by Coffee Day, the reports added.

Dish TV India surged 8.28% to Rs 13.60 after the company reiterated its intention to repay all its debts as and when they become due in the future.

Care Ratings has downgraded the short-term bank facilities rating to 'CARE D' from 'CARE A4+'. The agency in its rationale has taken into consideration the default by Dish TV India in payment of its short-term loan amounting to Rs 250 crore.

Following the development, Dish TV clarified that it has been drawing on its internal cash accruals to fund its capital expenditure for more than six quarters now. In addition, the company has also serviced its debt and interest obligations, on a consolidated level, to the tune of Rs 850 crore in the current fiscal. Debt and interest payment obligations falling due after the particular incident of non-service have also been fulfilled on time.

Foreign Markets:

European stocks declined while Asian stocks ended mixed on Monday as weak Chinese export data highlighted the detrimental impact of its prolonged trade war with the US.

Chinese exports declined in November for the fourth consecutive month, falling 1.1% year-on-year. Imports, on the other hand, rose 0.3% as compared to a year earlier.

Beijing's trade discussions with Washington have yet to yield a much-touted phase one agreement ahead of a key deadline for additional tariffs on Chinese exports to the U.S. on Dec. 15.

Japan's economy grew at an annualized rate of 1.8% in the July to September quarter, according to revised data from the country's Cabinet Office on Monday. That was sharply higher than the initial estimate of a 0.2% expansion.

In Europe, French Finance Minister Bruno Le Maire has said France is ready to take threats from U.S. President Donald Trump to impose tariffs on French goods to the World Trade Organization (WTO), amid a row over French taxes on American internet giants.

In US, markets closed sharply higher on Friday after the employment report from the Labor Department beat expectations, showing an estimated 266,000 new jobs created in November, the most since January. The unemployment rate fell to a 50-year low to 3.5% from 3.6%.

Investors also remained optimistic about the chances of a US-China trade deal, even though the deadline that will see import duties increased looms on 15 December.

Powered by Capital Market - Live News