The Sensex closed down 106 points, or 0.29 percent, at 36,134, while the Nifty settled lower by 14 points or 0.13 percent at 10,869. ONGC, Wipro, and BPCL were the top gainers, while Sun Pharma and M&M lost the most. HDFC twins and SBI dragged indexes, while Infosys and TCS provided support for the bulls.  

UFLEX shares rallied 6.5 percent intraday Tuesday on receiving patent from the United States for BOPET film. At 3.25 pm, shares traded at Rs 290.65, up 4.51 percent on the NSE. The Nifty traded down by 12.30 points to trade at 10,871. The Sensex slipped by 93 points to trade at 36,147. HDFC twins, SBI, M&M, Sun Pharma, ITC, Reliance Industries, HUL dragged indexes, while support for the bulls came from Infosys, TCS and ICICI Bank.

Shares of Reliance Communications extended their gain from Monday and rose as much as 12 percent on hope the company will soon be able to complete the sale of its spectrum to Reliance Jio Infocomm. Shares traded at Rs 17.20, up by 3.61 percent at 2.57 pm on the NSE.

Ramco System shares climbed 4.4 percent intraday after the company joined hands with KPMG Malaysia to offer HR & payroll business platform as a service (BPaaS).

"Ramco and KPMG Management & Risk Consulting Sdn Bhd will collaborate to use Kuala Lumpur as a springboard to offer advanced cloud-based human resources (HR) and payroll solutions for growth companies across the region," the enterprise software specialist said in its filing.

KPMG said it would use Ramco's HR and Global Payroll Platform as the cloud-based architecture to roll out its Business Platform as a Service.

Yes Bank shares gained 2.5 percent in morning on Tuesday after its asset management company received approval for launch of mutual fund schemes.

"Pursuant to the final regulatory approval (Certificate of Registration) from the Securities & Exchange Board of India (SEBI) to commence its mutual fund business, YES Asset Management (India), the wholly owned subsidiary of the bank has received SEBI approval to launch two mutual fund schemes," the lender said in its filing.

At 2.05 pm, Yes Bank shared were flat at Rs 177.90. The Nifty traded at 10,876, down by 7 points, while the Sensex was lower by 87 points, or 0.24 percent, to trade at 36,153. 

Shares of Edelweiss Financial Services hit a one-month high of Rs 187.05 as a report in the Economic Times said private equity firms such as BlackStone, KKR, Carlyle and Apax Partners are in the fray to buy stake in the company's wealth and asset management business. This advisory business of the company is being valued at Rs 120-150 billion, reports said. The firm plans to sell up to 25 percent stake in Edelweiss Global Wealth and Asset Management. (Cogencis)

Shares of Gulf Oil Lubricants India rose as much as 16 percent to hit their three-month high of Rs 882 as brokerage Emkay Global Financial Services has initiated coverage on the stock with "buy" rating and a target price of Rs 1,150. The brokerage expects the company's margins to recover due to a decline in base oil prices, steady rupee, and the effect of price hikes taken in July. 

Shriram EPC shares rallied nearly 5 percent in morning on Tuesday on winning orders from Jharkhand government. "We received two separate orders worth Rs 166.16 crore and Rs 59.55 crore from Jharkhand Urban Infrastructure Development Company," the engineering and construction company said in its filing.

Shares of Shankara Building Products continues its downtrend as share is down 9 percent intraday on Tuesday after ending at 10 percent lower circuit on Monday. The share touched a 52-week low of Rs 569.95. IDFC Securities had downgraded the stock to underperform from neutral and cut target price to Rs 525 from Rs 1,065 per share.

The Sensex traded at 36,123, down by 117 points, or 0.32 percent at 10.45 am, while the Nifty slipped by nearly 25 points, or 0.23 percent, to trade at 10,859. Midcaps were marginally up with the Nifty MidCap in the green, while the BSE MidCap was trading higher by 0.20 percent. Among index gainers, Indiabulls Housing Finance, UPL, Cipla, Infosys, Dr Reddy's Labs, Baja Auto, TCS, Tata Motors and ONGC gained by up to nearly 3 percent. Among loser, HDFC, NTPC, M&M, Kotak Mahindra, HDFC Bank, declined by up to 2.6 percent.

Shares of NTPC fell nearly 2 percent after a media report said the finance ministry is likely to press ahead with plans to sell its stake in SJVN to the company. The move is expected to bolster the government's efforts to meet its divestment target of Rs 800 billion for 2018-19 (April-March). The Centre currently holds 63.79 percent stake in SJVN, which it has reportedly proposed to sell to NTPC. At 10.10 am, shares of NTPC were down 1.5 percent at Rs 142.80.

The Sensex started 8 points up at 36,248.80, while the Nifty slipped by 5 points to 10,878.70. The Nifty Bank slipped nearly 46 points, while the Nifty MidCap was marginally up. The NSE index was marginally down by 6.65 to 10,877 in the pre-open trade at 9.08 am. The BSE index was marginally up by 49 points to 36,290. Among gainers, ONGC, UPL, Tata Motors, Dr Reddy's Labs and Ultra Tech Cement shares gained by up to nearly 2 percent. M&M, HDFC, HDFC Bank, JSW Steel and NTPC shares dipped by 2.4 percent. Earlier, the rupee opened weak at 70.49 against the US dollar on Tuesday after Monday's close of 70.45. 

Tata Motors:
BUY rating, target at Rs 330/share.
Significant value in stock, even in the absence of short-term catalysts.

Hero Moto:
BUY rating, target at Rs 3,750/share.
FY19 guidance maintained at high single-digits to low double-digits.
Implied growth of 14% for December–March is achievable.

Ashok Leyland:
SELL call, target at Rs 100/share
Significant downside risks to estimates if weakness continues
Expect commercial vehicles sales to peak in FY20, with FY21 being a down-year.

TVS Motor:
SELL call, target at Rs 480/share.
Market share for TVS over FY20/21 could be under pressure. 
Valuations at 25xFY20 EPS expensive against 14x for Hero and 16.5x for Bajaj. 
November volume growth surprised positively.

Jefferies on Sun Pharma:
HOLD rating, target at Rs 535/share.
While most issues appear dated, it may still remain an overhang. 
Valuations aren't inexpensive at 20x FY20 PE. 
Management responses may leave the markets with mixed feelings.
Management refrained from disclosure on Rs 2,200 crore loan advanced in FY18.

BOBCAPS on Sun Pharma:
Reiterates BUY call, target at Rs 615/share
Do not see major implications on business and earnings.
Outperformance in coming quarters or Ilumya scale-up to be near-term catalysts.

Edelweiss Securities on Sun Pharma:
There seems to be no end to company’s woes.
Questions with respect to Aditya Medisales and $350 million unsecured loan unanswered.
Many issues are dated, but enough to question the track record. 
Company needs to re-evaluates some of its structures and transactions.
Maintains REDUCE call, target cut to Rs 430 from Rs 500/share.

Credit Suisse:
Maintains NEUTRAL call, target raised to Rs 1,900 from Rs 1,700/share.
GSK merger a step change for foods.
FY21 will be the first full year of the merger.
Build in half the cost synergies to be realised by FY21.
Lift FY21 EPS estimate by 6.5%.
Max EPS accretion of 8% as company targets 800-1,000 bps savings.
Royalty rates, amortisation of intangibles are uncertain.

Macquarie:
Deal is EPS accretive in first year and value accretive to shareholders.
OUTPERFORM rating, target raised to Rs 2,086 from Rs 1,870/share. 
Company remains our top pick in the India consumer space. 
Company is also a high conviction Macquarie marquee idea.
Distribution multiplier and increasing penetration could be a game changer.
Aggressive margin expansion possible post-merger.

Deutsche Bank:
Upgrades to BUY from hold, target raised to Rs 2,100 from Rs 1,800/share.
GSK Consumer merger to boost earnings.
Merger to be margin and EPS-accretive by 5% in FY20.
Company to unlock significant scale and synergy benefits on costs.
Possibility of buyback/open offer from Unilever once GSK Plc. sells 5.7% in HUL.

BNP Paribas:
HOLD rating, target at Rs 1,700/share.
It could bolster FY20/21 earnings by 4-5%, exclusive synergy/ tax benefits. 
Once benefits are realised, expect valuation to perk up by another 4%.
Stock is fairly valued at 55x FY20e EPS.

Citi: 
NEUTRAL call, target at Rs 1,660/share.
An all-equity merger with GSK Consumer is value accretive.
To have royalty agreement with Unilever that acquired rights for Horlicks Brand. 
EPS accretive to the extent of 3.7% on our FY21 estimates.
Assuming synergies of 500-1000 bps of FY21e sales, EPS accretion can be 5.8-8%.

Jefferies:
HOLD rating, target at Rs 1,650/share.
GSK acquisition deal accretive but execution is the key.
HUL valuation leaves no room for error. 
See a potential 6-9% EPS accretion in FY21.

PhillipCap:
Upgrades to BUY, target raised to Rs 2,160 from Rs 1,760/share.
Raise revenue/EBITDA and net income FY21 estimates by 12/27/29%.
It has all levers in place to make acquisition work to its advantage.
RoE will decline to 24% by FY21 from 75% in FY18.

Emkay:
ACCUMULATE rating, target raised to Rs 1,900 from Rs 1,750/share.
Horlicks buy provides upsides.
Estimate EPS accretion of 6% from the deal.
Growth from higher distribution & innovation capabilities can drive upside.

Asia: MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.2 percent as the Australian market gave up 0.5 percent and Seoul's Kospi fell 0.6 percent. Japan's Nikkei stock index was 0.3 percent lower.

Wall Street: The Dow Jones Industrial Average rose 287.97 points, or 1.13 percent, to 25,826.43, the S&P 500 gained 30.2 points, or 1.09 percent, to 2,790.37 and the Nasdaq Composite added 110.98 points, or 1.51 percent, to 7,441.51.

Crude Oil Prices: US West Texas Intermediate (WTI) crude futures were at $53.20 per barrel at 0006 GMT, up 25 cents, or 0.5 percent, from their last close. International Brent crude oil futures had yet to trade.

Dollar: In the currency market, the dollar eased 0.05 percent against the yen to 113.59, while the euro was flat on the day at $1.1351.

Check out more market opening cues

Sun Pharma:  The company on Monday assured investors the highest levels of corporate governance and said the company will make changes in business transactions to increase transparency.

Eicher Motors:  Royal Enfield, the two-wheeler division of Eicher Motors, on Monday reported a six percent drop in sales to 65,744 units in November.

Jet Airways: In an attempt to cut costs and boost revenues, the full-service carrier will stop providing free meals to most domestic economy class passengers from January.

IL&FS: Debt-laden Infrastructure Leasing and Finance Company (IL&FS) on Monday said it has appointed N Sivaraman as group chief operating officer (COO).

HUL, GSK Consumer Healthcare: The board of Hindustan Unilever Limited on Monday approved a scheme of amalgamation between the company and GlaxoSmithKline Consumer Healthcare Limited (GSK CH India), a statement by HUL said.

Check out more hot stocks today

In the two months since Reserve Bank of India’s (RBI) last Monetary Policy Committee (MPC) meeting in early October, a lot has changed. Amid a sharp rise in international crude oil prices, a strengthening US dollar putting pressure on emerging market currencies, rise in bond yields across major economies and escalating trade tensions between the world’s largest economies, the ‘inflation targeting’ central bank took the market by surprise by leaving the policy rate unchanged, but altered the stance of the policy to ‘calibrated tightening’ form neutral, in a 5-1 vote. Read more

Markets: Reactions to weekend G20 developments dominated trade. EMFX benefitted the most, alongside a US equities relief rally (on low volumes) led by the auto sector. The less called move was yields, which moved lower and saw 3s5s briefly invert despite a (largely) solid US ISM manufacturing report. Equities close: Dow +1.13%, SPX +1.09%, Nasdaq +1.51%.

Big picture: The bar remains high for a comprehensive trade deal. Markets also must cope with uncertainty brought by Fed policy amid soft global growth developments, Brexit and US investigations.

Day of mourning: Wednesday has been declared a national day of mourning for former US president George H.W. Bush. Various market closures will occur, along with postponement of first-tier data and chair Powell’s testimony.

China negotiations: USTR Lighthizer is now said to lead negotiations with China. Of his colleague, trade hawk Navarro said: "Robert Lighthizer, the ambassador, USTR, is... He’s the toughest negotiator we’ve ever at the USTR and he’s going to go chapter and verse and get tariffs down, non-tariff barriers down and end all these structural practices that prevent market access.”

ISM data: US ISM was overall positive. A sharp fall in Prices Paid was a tad worrisome. This fell from 71.6 to 60.7 vs 70.0 expected, seeming to have well & truly quashed the inflation narrative.

Debt-laden Infrastructure Leasing and Finance Company (IL&FS) on Monday said it has appointed N Sivaraman as group chief operating officer (COO). Sivaraman will be responsible for day-to-day operations and provide hands on leadership and oversight to the groups asset monetization efforts, the company said in a statement. Read more

Royal Enfield, the two-wheeler division of Eicher Motors, on Monday reported a six percent drop in sales to 65,744 units in November. The automaker sold 70,126 bikes in November 2017, the company said in a statement. 

Check full details here

It’s been a hotly contested battle to get the Horlicks 'Boost'. Unilever emerged as the winner as the company set to buy GlaxoSmithKline's Horlicks nutrition business for $3.8 billion, boosting the Anglo-Dutch group's position in India with the addition of the malted drink. Read more

MORNING CUES
FIIs net buy Rs 293 crore in cash market (5273-4980).
DIIs net sell Rs 806 crore in cash market (3488-4294).
FIIs net sell Rs 302 crore in F&O.
Date: December 3, 2018 
Source: NSE

 
FIIs in F&O
FIIs net buy Rs 401 crore in Index Futures, Open Interest +13901 contracts.
FIIs net sell Rs 1170 crore in Index Options, Open Interest +22951 contracts.
FIIs net buy Rs 350 crore in Stock Futures, Open Interest +16202 contracts.
Date: December 3, 2018 
Source: NSE

                 
INDEX CUES
Nifty Spot closed at 10,883.75 up by 7 points.
India VIX closed at 18.2225 down by 4.91%.
 
F&O Ban: NIL
 
ACROSS SERIES:
Nifty Open Interest +2%, adds 3.89 lakh shares.
Nifty December Futures trading at 40.25 points premium v/s 23.9 points premium. 
Nifty Bank OI -2.1%; Sheds 35900 shares
 
OPTION CUES 
Nifty PCR at 1.68 vs 1.69
 
DECEMBER SERIES: Maximum Open Interest at 10,000 Put and 11,000 Call.
10,500 Put Adds 3.12 lakh shares, premium at 72 vs 82.
11,500 Call Adds 2.63 lakh shares, premium at 16 vs 14.
11,000 Put Adds 2.58 lakh shares, premium at 229 vs 243.
 
STOCK FUTURES
PFC +13%
Open Interest +8.2%, Fresh Longs 
 
INDIABULLS HOUSING FINANCE +10%
Open Interest -7%, Short Covering 
 
HINDUSTAN UNILEVER +5%
Open Interest +11.4%, Fresh Longs 
 
SUN PHARMA -8%
Open Interest +34.1%, Fresh Shorts
 
INDIGO -5%
Open Interest +11.1%, Fresh Shorts
 
GLENMARK PHARMA -5%
Open Interest +7.7%, Fresh Shorts
 
ASHOK LEYLAND -4.5%
Open Interest +11.4%, Fresh Shorts