CNBC-TV18 Market Highlights: Indian shares ended with minor gains on Monday amid lingering growth concerns and sustained foreign fund outflows. The benchmark 30-share S&P BSE Sensex added over 42 points, or 0.10 percent, to settle at 40,487 at close. The broader 50-share NSE Nifty50 also gained 16 points, or 0.13 percent, to settle at 11,937.50. Here are the main highlights from the stock markets today:
Thank you readers! Here are the main highlights from today’s trading session##Thank you readers! Here are the main highlights from today’s trading session
Thank you readers and before we sign off from today’s our rolling coverage of the stock markets, here’s a snapshot of major highlights:
-Sensex and Nifty end with minor gains amid volatility
-Sensex Closes 42 points lower at 40,487 & Nifty up 15 points to 11,937.50
-TCS, L&T and ITC Drag Nifty while HDFC, Reliance and Axis Bank support
-Kotak Mahindra Bank and SBI drag Nifty Bank; index slips 13 points to 16,727
-Midcap Index closes flat with negative bias; market breadth favours declines
-YES Bank moves 8 percent intra-day as reports say lender to reject Braich’s offer
-Coffee Day slips 10 percent as YES Bank likely to have said no to NOC for Tech Park deal
-Maruti snaps 7-day losing streak after co reports production increase in November
-Tata Motors slip 4 percent from highs as November JLR retail sales come in 3.4 percent lower YoY
-BPCL and SCI gains on reports of UK roadshow for govt stake sale
-Adani Group stocks higher after positive commentary from Gautam Adani
Sensex heatmap at close: Axis Bank, HDFC, Maruti top gainers, TCS falls 3%##Sensex heatmap at close: Axis Bank, HDFC, Maruti top gainers, TCS falls 3%
Closing Bell: Sensex, Nifty settle with minor gains, HDFC, Reliance Industries, Axis Bank support indices##Closing Bell: Sensex, Nifty settle with minor gains, HDFC, Reliance Industries, Axis Bank support indices
Indian shares ended with minor gains on Monday amid lingering growth concerns and sustained foreign fund outflows. The benchmark 30-share S&P BSE Sensex added over 42 points, or 0.10 percent, to settle at 40,487 at close. The broader 50-share NSE Nifty50 also gained 16 points, or 0.13 percent, to settle at 11,937.50. Broader market indices underperformed with the Nifty MidCap 100 index down 0.08 percent. The Nifty SmallCap 100 index also dropped 0.78 percent. Sectoral indices were mixed with Nifty Realty, Media, IT and FMCG declining the most between 0.5 and 1.6 percent. The Nifty Auto surged 0.80 percent, while Nifty Financial Services and Metal rose by up to half a percent. Among gainers, BPCL, Axis Bank, Adani Ports, HDFC and Maruti Suzuki rose by up to 2.11 percent. Among Nifty losers, TCS, HCL Technologies, Cipla, L&T and Zee Entertainment fell by up to 3 percent.
Tata Elxsi at 3-month high on hope JLR earnings to improve##Tata Elxsi at 3-month high on hope JLR earnings to improve
Shares of Tata Elxsi jumped to a three-month high of Rs 879.50 as prospects for the company improved after its biggest client, Jaguar Land Rover, reported a rise in sales in China, the company's key market, for the fifth consecutive month in November. Jaguar Land Rover contributes 20-25% to Tata Elxsi's annual sales. Jaguar Land Rover's retail sales in China rose 29 percent on year in November, which has made investors bet on a recovery in the luxury carmaker's earnings. China contributes around 40 percent to Jaguar land Rover's volumes. At 3.07 pm, shares of Tata Elxsi were up 0.7 percent at Rs 856.10.
India VIX surges 13% as worries over economic growth remain##India VIX surges 13% as worries over economic growth remain
Volatility gauge India VIX surged as much as 13 percent as concern over local economic growth and sustainability of institutional inflows in the market made investors anxious. The high selling in call options of the Nifty 50 suggests that the index is not seen staging a recovery anytime soon, and added to the volatility in the market. At 2.55 pm, the Nifty 50 was at 11942.30, up 0.2 percent from the previous close while India VIX was up 11 percent at 15.1200.
Nifty50 Sectoral Indices Update: 5 out of 11 sectoral indices in red##Nifty50 Sectoral Indices Update: 5 out of 11 sectoral indices in red
Out of 11 Nifty50 sectoral indices, Nifty Realty fell the most, down 1.02 percent followed by nifty FMCG and Nifty IT. Nifty Auto was the best-performing index, up 0.91 percent on Monday.
BSE Stocks Update: 12 out of 30 BSE shares trade in the red, TCS top loser##BSE Stocks Update: 12 out of 30 BSE shares trade in the red, TCS top loser
Out of 30-share Sensex, 12 are trading in the red. TCS remained the top loser, down 2.32 percent followed by HCL Technologies, Hindustan Unilever, Kotak Mahindra Bank and SBI among few others.
Reliance Jio says its average customer unlikely to ever pay for outgoing calls##Reliance Jio says its average customer unlikely to ever pay for outgoing calls
Reliance Industries (RIL) telecom arm Reliance Jio has claimed that its average customer is never likely to pay for the calls as it offers five times more free outgoing calls limit on other networks than what is required by the customer.
"Entitlement for off-net calls in Jio's 'All in One Plans' is more than 5 times of what an average customer uses as per industry data and consequently, an average Jio customer is unlikely to have to ever pay for off-net calls. We reiterate that Jio plans offer up to 25 percent higher value than comparable plans of other operators," the company said in a statement. READ MORE
Udayan Mukherjee says markets lack support of strong earnings growth##Udayan Mukherjee says markets lack support of strong earnings growth
Strong and robust earnings growth is the foundation of a bull market and Indian markets lack such support, said CNBC-TV18's Udayan Mukherjee. "It is a small miracle that the market has turned in some performance for investors even in the backdrop of such tepid earnings growth," he added.
"This quality bubble, which we have got used to over the last two-three years, is basically indicating that the patience of investors is running thin," said Mukherjee.
He pointed out that only a narrow set of stocks delivered the returns and turning in the performance, but portfolios have not done well in 2019. Here's the link to the article for you to read.
Bank of Baroda to sell up to 1.04 equity shares of UTI AMC via IPO##Bank of Baroda to sell up to 1.04 equity shares of UTI AMC via IPO
VA Tech Wabag's shares rally 16% after executing Chennai Metro water supply project worth Rs 482 crore##VA Tech Wabag's shares rally 16% after executing Chennai Metro water supply project worth Rs 482 crore
Bharat Bond ETF to open on December 12, base size Rs 7,000 crore##Bharat Bond ETF to open on December 12, base size Rs 7,000 crore
The government has obtained approval from the Securities and Exchange Board of India for the Bharat Bond exchange-traded fund and the ETF will be open for subscription from December 12 to December 20, a government official told CNBC-TV18.
The Bharat Bond ETF will have a base size of Rs 7,000 crore base size, with a likely greenshoe option of Rs 8,000 crore, said the official. Click here to read more.
Here's a quick round-up post of all the events that happended so far##Here's a quick round-up of all the events that happened so far
1. Tata Motors JLR retail sales decline 3.4 percent YoY at 46,582 units
2. SBI reduces lending rates by 10bps
3. Gautam Adani says to CLSA that the group will be entering airports, defence and transportation business
4. Dish TV's shares jump over 11% after CARE revises bank facilities rating
5. Vodafone Idea's shares plunge 14% after KM Birla's comments on shutting the company spooks investors
VST Tillers is a zero debt company, says Anthony Cherukhara of VST Tillers##VST Tillers is a zero debt company, says Anthony Cherukhara of VST Tillers
Here are some of the key takeaways from the conversation:
1. Looking at 6-7 percent growth decline in the tractor segment
2. Yet to get subsidies from key states like Assam and Odisha
3. Could see growth decline of 15-20 percent in tiller segment without government subsidies
4. Expecting subsidies from Odisha government by December-end for 4,000-6,000 tillers
5. VST Tillers is a zero debt company
6. No plans to monetize any land bank at the moment
7. Company slowly scaling up production of tractors with higher horsepower
SBI reduces lending rates by 10 bps##SBI reduces lending rates by 10 bps
State Bank of India, the country's largest lender, has reduced its lending rates by 10 basis points on Monday, effective December 10. This is the eighth consecutive cut in MCLR by SBI in the fiscal year 2019-2020.
With the latest cut, SBI's one-year MCLR comes down to 7.90 percent per annum from 8 percent. with effect from 10th December 2019.
The move will reduce interest rates on SBI home loans and personal loans. READ MORE
Shares of Maharashtra Seamless rise over 3% post order win##Shares of Maharashtra Seamless rise over 3% post order win
Shares of Maharashtra Seamless gained nearly 4 percent on Monday after the company bagged Rs 500 crore order for the supply of seamless castings to Oil and Natural Gas Corporation (ONGC).
At 11:21 am, Maharashtra Seamless shares gained 2.16 percent to trade at Rs 368.25 apiece on the NSE while on an intraday basis, the stock price rose 3.48 percent at Rs 374.70.
Gautam Adani to CLSA says, "The group will be entering airports, defence and transportation domains"##Gautam Adani to CLSA says, "The group will be entering airports, defence and transportation domains"
Dish TV's shares jump over 11% after CARE revises rating of bank facilities##Dish TV's shares jump over 11% after CARE revises rating of bank facilities
Shares of Dish TV India surged over 14 percent in the early trade on Monday after credit rating agency CARE revised its rating on bank facilities of the company to CARE D from CARE A4+.
The revision in the rating assigned takes into account default in payment of short-term loan due on November 28, 2019, CARE said.
However, Dish TV said that the default in debt repayment was a result of a temporary cash shortfall due to peak payment commitments to suppliers.
The DTH service provider reiterated its intention to repay all its debts as and when they become due in the future.
Vodafone Idea's shares plunge 14% over KM Birla's comments, series of downgrades##Vodafone Idea's shares plunge 14% over KM Birla's comments, series of downgrades
Shares of Vodafone Idea plunged over 14 percent on Monday over Chairman Kumar Mangalam Birla's comment and series of downgrades from credit rating agencies.
At 9:58 am, the stock was trading 6.52 percent lower to Rs 6.45 per share on the NSE while on an intraday basis, the share price plunged 14.49 percent at Rs 5.90.
On Friday, Vodafone Idea's Chairman KM Birla at an event said, "The company may have to shut if there's no relief on the statutory dues that the telco has to pay by January-end."
"It does not make sense to put good money after bad... We will shut shop" added Birla.
Last week, Brickwork Ratings downgraded the stock's sovereign rating. The credit rating agency downgraded the rating of its non-convertible debentures to 'BBB-' from 'A-' earlier.
The downgrade is on account of the considerable impact of the AGR (adjusted gross revenue) related liability on the financial performance of the company resulting in huge losses, erosion of net worth and deterioration in the overall risk profile of the company, the report said.
Maruti Suzuki's share price rose 2 percent over rise in November production##Maruti Suzuki's share price rose 2 percent over rise in November production
The stock price of Maruti Suzuki rose 2 percent intraday on Monday after the auto giant reported a rise in November production after nine months of output cut.
At 9:43 am, the shares were trading 1.70 percent higher to Rs 7,004 per share on the NSE while on an intraday basis, the share price rose 2.04 percent at Rs 7,027.90.
In its regulatory filing, the four-wheeler maker reported that the company produced a total of 1,41,834 units in November as against 1,35,946 units in the year-ago month.
Passenger vehicles' production last month stood at 1,39,084 units as against 1,34,149 units in November 2018, an increase of 3.67 percent, it added.
Production of mini and compact segment cars, including Alto, new WagonR, Celerio, Ignis, Swift, Baleno and Dzire stood at 1,02,185 units as against 95,883 units in November last year, up 6.5 percent. However, the production of mini segment cars, such as Alto and S-Presso, fell to 24,052 last month, compared with 30,129 in the year-ago month.
In October, the automaker had cut its production by 20.7 per cent to 1,19,337 units. Similarly, in September the automaker reduced its production by 17.48 per cent to 1,32,199 units.
Sanjay Kapoor to CNBC-TV18 says, "Tariff hikes are not enough for the telecom industry"##Sanjay Kapoor to CNBC-TV18 says, "Tariff hikes are not enough for the telecom industry"
Here are the key higlights from the conversation with Sanjay Kapoor:
1. Statements by Kumar Mangalam Birla w.r.t Vodafone Idea are a big caution
2. Serious when a respected businessman like KM Birla makes such statements
3. A lot of P&L stress even if AGR dues are deferred as companies will have to pay interest
4. Tariff hikes are not enough to tackle woes of the telecom industry
5. The infrastructure needed for 5G is phenomenal
6. There is room for the industry to support Vodafone Idea's survival
7. Bharti Airtel & Vodafone Idea share a lot of passive infrastructure
Moody’s on CNBC-TV18:
1. If Vodafone Idea defaults, then that specific exposure becomes NPA for banks
2. Vodafone Idea exposure will be ring-fenced for banks
What will drive the markets this week?##What will drive the markets this week?
> The US Federal Reserve interest rate decision on Thursday.
> Investors will keep a close watch on progress of US-China trade talks.
> Major macro data scheduled to be released on Thursday post trading hours: IIP and CPI inflation.
> Investors may also focus on rupee-dollar trend, oil prices and investment pattern by foreign investors.
FPIs net sellers in first week of December##FPIs net sellers in first week of December
Foreign portfolio investors turned net sellers in December with a net outflow of Rs 244 crore from the capital markets amid subdued economic data. According to the depositories data, FIIs pulled out a net sum of Rs 1,668.8 crore from equities. FPIs, however, invested Rs 1,424.6 crore on a net basis in the debt segment, resulting in a total net outflow of Rs 244.2 crore in December so far.
FPIs had been net buyers for two months to November. They invested Rs 16,037.6 crore in October and Rs 22,871.8 crore in November on a net basis.
Top brokerage calls for December 9: Morgan Stanley maintains 'overweight' on Bharti Airtel, Grasim; Citi recommends 'buy' on Jubilant Food##Top brokerage calls for December 9: Morgan Stanley maintains 'overweight' on Bharti Airtel, Grasim; Citi recommends 'buy' on Jubilant Food
Among brokerages, Morgan Stanley has an 'overweight' call on Bharti Airtel and Grasim. On the financials' front, Stanley expects the year 2020 to be a fairly weak one for the sector due to slower loan growth. Meanwhile, Edelweiss believes that SpiceJet could win a substantial market share from IndiGo.
The consumption sector could be under pressure as the government spending could likely be cut sharply in H2FY20 due to the shortfall in tax collections.
Here is what happened in the world while you were sleeping
Alright, let us prep you quickly with everything that you should know before the market opens.
Benchmark indices BSE Sensex and NSE’s Nifty50 are likely to open steady on Monday amid mixed global cues.
US markets: This is what happened with the US stock market: The dollar rose and global equity markets rallied on Friday after data showed U.S. job growth increased by the most in 10 months in November, putting to rest fears of recession and briefly taking the spotlight off the U.S.-China trade talks.
Oil: Oil moved higher on Friday as OPEC and its allies agreed to deepen oil production cuts to 500,000 barrels a day through to March 2020. This brings the total production cut to 1.7 million barrels a day.
To read all about it: check out this article.
Here is a list of some of our late evening breaks you may have missed.
1. Bharti Telecom seeks Rs 4,900 crore FDI nod; infusion to make Airtel foreign firm
Bharti Telecom, a promoter of Bharti Airtel, has sought government nod for the infusion of Rs 4,900 crore investment from Singapore-based Singtel and other foreign entities, a move that would make the country's oldest private telecom operator a foreign entity.
The fund infusion will enhance foreign stakeholding in Bharti Telecom to over 50 percent that will make it a foreign-owned entity, an official source aware of the development told PTI.
You can read the full report here.
2. Raghuram Rajan: India in growth recession; extreme centralization of power in PMO not good
Former Reserve Bank of India (RBI) governor Raghuram Rajan said India is in the midst of a "growth recession" with signs of a deep malaise in the Indian economy that is being run through extreme centralization of power in Prime Minister's Office and powerless ministers.
Penning down his recommendations to help the ailing Indian economy out of the ongoing slowdown in the India Today magazine, he called for reforms to liberalise capital, land and labour markets, and spur investment as well as growth.
Click here to read more.
First up, here is a quick catchup of what happened in the markets on Friday.
The benchmark indices, the BSE Sensex and NSE Nifty50, ended Friday's trading session with sharp losses dragged down by auto, bank and consumer names.
The benchmark 30-share S&P BSE Sensex tumbled 334 points, or 0.82 percent, to settle at 40,445. The broader NSE Nifty50 also ended below the psychological level of 12,000, dipping 104 points, or 0.87 percent, to 11,914. If you are interested, you can check out the full article here.
Good morning, readers! This is Mousumi Paul. I am a copy editor at CNBCTV18.com.
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