Indian shares pared early gains to end in red on Monday, dragged by losses in metal, auto and FMCG indices. The BSE Sensex settled 71 points lower at 40,939, while the NSE Nifty50 was down by 26 points to end at 12,061.
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
- Market Fails To Hold Opening Highs, Closes Near Day’s Low
- Sensex Slips 246 Points From Intra-day Record High Of 41,185
- Nifty Gives Up 12,100, Down 81 Points From Day’s High
- 38 Nifty Stocks Close Lower; Reliance, ITC, HDFC Bank Top Losers
- IT Stocks Gain As Rupee Weakens Against The US Dollar
- Nifty Bank Slips 213 Points From Highs To Close Flat
- HDFC Bank and Axis Bank Drag Nifty Bank While Kotak Bank and ICICI Bank Support
- Midcap Index Falls 155 Points From Highs, Market Breadth Favours Declines
- Except IT, All Sectoral Indices Close In The Red; Metal, FMCG Top Losers
- JSPL Under Pressure After Coal Min Rejects Allocation Of Gare Palma IV/1 Block
- Indoco Remedies Up Over 2 percent After Getting GMP For Goa Unit (II)
- Glenmark Pharma Higher In Trade After Getting GMP Certificate From EU Regulator
- Sun Pharma Mildly Lower After US FDA Issues 8 Observations To Halol Unit
Closing Bell: Sensex, Nifty pare early gains to end in red; auto, metal stocks fall##Closing Bell: Sensex, Nifty pare early gains to end in red; FMCG, auto stocks fall
Indian shares pared early gains to end marginally lower on Monday, as initial enthusiasm over a phase one Sino-US trade pact gave way to concerns about the lack of concrete details on the agreement. Indices were dragged by losses in metal, auto and FMCG indices. Decline in index heavyweights like Reliance Industries, ITC, HUL, and HDFC Bank also added to the woes.
The BSE Sensex settled 71 points lower at 40,939, while the NSE Nifty50 was down by 26 points to end at 12,061. Broader market indices also traded mixed with the Nifty MidCap 100 index down 0.6 percent, while the SmallCap100 index slipped 0.10 percent. In intra-day deals, the BSE Sensex rose 175 points to hit a new high of 41,185, while the Nifty Bank index also advanced 143 points to its all-time high of 32,157.
TCS, Tech Mahindra, HCL Tech, Kotak Bank and Bajaj Finserv were top Nifty gainers for the day, up between 0.8-3 percent, while Grasim, Adani Ports, ITC, Eicher Motors and JSW Steel led the losses. Sectoral indices traded largely lower with Nifty FMCG and Nifty Metal indices losing over 1.2 percent each. Nifty Auto also fell 1 percent, while Nifty PSU Bank and Nifty Media shed over 0.5 percent each. Meanwhile, Nifty IT rallied over 1 percent for the day and Nifty Realty was up 0.3 percent. Nifty Bank ended flat after hitting record high in morning deals.
Ramco System share price jumps 9% on contract from China Aircraft Services##Ramco System share price jumps 9% on contract from China Aircraft Services
Ramco System share price gained 9 percent intraday on Monday after the company received an order from China Aircraft Services for end-to-end base and line maintenance operations. One of the largest third-party MRO providers, and a joint venture company among CNAC(G), UAL, CAL & Gama Aviation, China Aircraft Services has signed an agreement with the company to implement its Aviation Suite V5.8 for end-to-end base and line maintenance operations.
Roundup 2019: Nifty Pharma cracks 9%; only 3 stocks in green##Roundup 2019: Nifty Pharma cracks 9%; only 3 stocks in green
Even as Nifty50 index gained 11 percent in 2019 in 2019, Nifty Pharma index was a drag on the NSE, falling about 9 percent on the back of USFDA observations, pricing pressure, increasing R&D expenses, and fixed-dose combinations (FDC) ban, among others. The fall in the sectoral index was led by Glenmark Pharma, Aurobindo Pharma, Piramal enterprises, Cadila Healthcare, Cipla, Lupin, and Biocon. These stocks fell between 5.5 percent and 50 percent this year. Only 3 stocks from the sector that gave positive returns in 2019 were Divi's Labs (up 25 percent), Dr. Reddy's (up 8 percent), and Sun Pharma (up 0.4 percent). READ MORE
Growth slowdown in India not entirely attributable to global factors: Shaktikanta Das##Growth slowdown in India not entirely attributable to global factors: Shaktikanta Das
Reserve Bank of India (RBI) Governor Shaktikanta Das said on Monday that it will do everything necessary to address growth slowdown, spike in inflation, health of banks and non-banking financial companies (NBFCs).
The RBI Governor said that it had seen the momentum of growth slowdown in the Indian economy and acted ahead of time by reducing rates from February, adding that growth slowdown in the country was not entirely attributable to global factors.
He said that coordinated and timely actions were needed by all advanced and emerging economies to address global economic slowdown. “Hope the China-US understanding on trade will hold and will be sustainable,” said Das.
The RBI Governor said that there was a need for informed, objective discussion on the economy.
(With inputs from PTI)
PNB's stock price falls after under-reporting bad loans##PNB's stock price falls after under-reporting bad loans
The share price of Punjab National Bank fell nearly 3 percent intraday on Monday after the public lender reported its non-performing assets by Rs 2,617 crore for the fiscal year-2018-19.
As per RBI's risk assessment report, the Bank reported divergence in the provisioning of bad loans to Rs 2,091 crore.
Therefore, the public lender would have reported a net loss of Rs 11,335.90 crore for FY19 as opposed to a net loss of Rs 9,975.49 crore.
Navin Fluorine's shares hit a 52-week high##Navin Fluorine's shares hit a 52-week high
The mid-cap chemical stock hit its 52-week high on Monday. Last week, the company reported in its BSE filing that it has approved capital expenditure of approximately Rs 90 crore for site development and related infrastructure on 74 acres of land for greenfield projects on Gujarat.
The company will fund the projects through internal accruals.
At 1:14 pm, the shares were trading 0.28 percent higher to Rs 940.45 per share on the NSE while on an intraday basis, it rose 2.34 percent at Rs 959.95.
Here's why ICICI Direct Research sees 36% upside in this pharma stock##Here's why ICICI Direct Research sees 36% upside in this pharma stock
ICICI Direct Research has recommended a 'buy' rating on Aster DM Healthcare with a long-term price target of Rs 210 per share. The target price is 36 percent higher from the pharma firm's market price of Rs 154 apiece on December 10.
It said Aster has a "unique business model among Indian healthcare service providers with a strong established presence in GCC and India".
Aster DM Healthcare's Q2 revenue from operations recorded an increase of 14 percent reaching Rs 2,087 crore. It registered a profit after tax (PAT) of Rs 27 crore in Q2 of FY20.
Moody’s cuts India GDP growth forecast for FY20, citing weak consumption##Moody’s cuts India GDP growth forecast for FY20, citing weak consumption
Global ratings agency Moody's Investors Service has lowered India’s gross domestic product growth projection for the fiscal year 2019-20 to 4.9 percent from 5.8 percent, saying that weak household consumption will curb economic growth and weigh on the credit quality.
"What was once an investment-led slowdown has now broadened into weakening consumption, driven by financial stress among rural households on the back of stagnating agricultural wage growth and constrained productivity, as well as weak job creation due to rigid land and labor laws," said Deborah Tan, a Moody's Assistant Vice President and Analyst. READ MORE
Coal Ministry tells CNBC-TV18, closing bid of the Preferred Bidder (JSPL) in the 8th Tranche of the auction for Gare Palma IV/1 has not been approved in the public interest##Coal Ministry tells CNBC-TV18, closing bid of the Preferred Bidder (JSPL) in the 8th Tranche of auction for Gare Palma IV/1 has not been approved in the public interest
India's November WPI inflation at 0.58% v/s 0.16 % MoM##India's November WPI inflation at 0.58% v/s 0.16 % MoM
Moody's says 2020 outlook for APAC finance companies negative##Moody's says 2020 outlook for APAC finance companies negative
Finance companies in the Asia Pacific region will operate in a more challenging operating environment in 2020, characterized by slower growth amid elevated geopolitical risk and pessimistic business sentiments, said Moody's Investors Service in a report. The rating agency has a negative outlook for APAC finance companies for the year 2020 as slower economic growth weighs on their credit fundamentals. READ MORE HERE
Glenmark's Baddi manufacturing unit receives GMP certificate from European regulator##Glenmark's Baddi manufacturing unit receives GMP certificate from European regulator
The shares of Glenmark Pharmaceuticals rose nearly 3 percent intraday on Monday after it said that its Baddi manufacturing unit has received a Good Manufacturing Practice (GMP) certificate from the European regulator State Institute for Drug Control (SUKL).
At 11:11 am, the share price was trading 1.71 percent higher to Rs 345.40 per share on the NSE, while on an intraday basis, the stock price rose 2.94 percent at Rs 350.
"The European regulator has just issued a certificate of compliance for the facility stating that it complies with the principles and guidelines of Good Manufacturing Practice (GMP) laid down in the directive 2003/94/EC which stipulates the requirements to fulfill GMP recommendations of WHO," Glenmark Pharmaceuticals said in a regulatory filing.
Baddi manufacturing unit of Glenmark Pharmaceuticals was inspected by SUKL in the week of October 21 this year, the filing added.
EaseMyTrip files draft papers for Rs 510 crore IPO##EaseMyTrip files draft papers for Rs 510 crore IPO
Online travel company EaseMyTrip has filed draft papers with capital markets regulator Securities & Exchange Board of India (SEBI) to float a Rs 510 crore initial public offering.
According to draft papers filed with the Sebi, the company's founders Nishant Pitti and Rikant Pitti will each sell shares to the tune of Rs 255 crore through the offer-for-sale mechanism.
EaseMyTrip.com is operated by Easy Trip Planners Private Ltd.
The object of the public issue is to achieve the benefits of listing the equity shares on stock exchanges, the company said.
"Our company expects that listing of the equity shares will enhance our visibility and brand and provide liquidity to its existing shareholders," it added.
The company's issue is being managed by Axis Capital and JM Financial.
Founded in 2008, EaseMyTrip is an online travel agency market with offices across various Indian cities, including Noida, Bengaluru, Mumbai and Hyderabad. Its international offices (as subsidiary companies) are located in Singapore, the UAE and the UK.
November WPI expected to rise to 0.66% from 0.16% in October##November WPI expected to rise to 0.66% from 0.16% in October
India's inflation based on the Wholesale Price Index (WPI) is expected to rise in November to 0.66 percent from 0.16 percent in October on account of higher food inflation, according to a poll conducted by CNBC-TV18. The wholesale inflation is likely to be in the range between 0.3 and 0.9 percent, it said.
The core inflation is expected to decline by 1.2-1.5 percent from a 1.6 percent month-on-month basis.
Higher food inflation also impacted the consumer price index (CPI) data and the same trend is expected to percolate into WPI data. However, declining core inflation would indicate that manufacturing is still under stress. CLICK HERE TO READ MORE
Sun Pharma's share price slips nearly 3%##Sun Pharma's share price slips nearly 3%
Shares of Sun Pharmaceutical slipped nearly 3 percent intraday on Monday after the US FDA issued a Form-483 with 8 observations to the company's Halol facility.
At 9:36 am, the share price was trading 1.92 percent lower at Rs 430.80 per share on the NSE while on an intraday basis, the share price slipped 2.93 percent at Rs 426.40.
Sensex & Nifty Bank open at a record high, Nifty at 12,100##Sensex & Nifty Bank open at a record high, Nifty at 12,100
Rupee opens stronger versus Friday's close##Rupee opens stronger versus Friday's close
Nifty option outlook today from Prakash Pandey, MD and CEO at Plutus##Nifty option outlook today from Prakash Pandey, MD and CEO at Plutus
Nifty Options Data: Dec 19 expiry
1. Nifty 12,000 PE is having highest open interest (OI) of 21.2 lakhs, Premium at 29
2. Nifty 12,100 CE is having highest OI of 11.82 lakhs, Premium at 85.
Accoding to the option market data, this week range:
Nifty support level is 11,970
Nifty resistance at 12,190
Top stock recommendations by Ashwani Gujral, Sudarshan Sukhani, Mitessh Thakkar for Monday
EaseMyTrip files draft papers for Rs 510 crore IPO##EaseMyTrip files draft papers for Rs 510 crore IPO
Online travel company EaseMyTrip has filed draft papers with capital markets regulator Securities & Exchange Board of India (SEBI) to float a Rs 510 crore initial public offering. According to draft papers filed with the Sebi, company's founders Nishant Pitti and Rikant Pitti will each sell shares to the tune of Rs 255 crore through offer-for-sale mechanism. EaseMyTrip.com is operated by Easy Trip Planners Private Ltd. The object of the public issue is to achieve the benefits of listing the equity shares on stock exchanges, the company said. READ MORE
Four things to keep in mind while investing in IPO in 2020##Four things to keep in mind while investing in IPO in 2020
From time to time, companies need funds to expand their business and IPO or initial public offering is a way to source these funds from public investors. The capital hence raised by the sale of shares or equities fuels business expansion, repaying loans and debts and enable easy trading of existing holdings. The investors, in turn, become a part of the business, thus reaping rewards (dividends) in proportion to their investments, as the share price increases.
IPOs are attractive for investors owing to the common belief that stock prices shoot up after an IPO and hence it presents a great opportunity to “buy low and sell high”. Click here to read more on this.
Top brokerage calls for December 16: Morgan Stanley 'overweight' on Sun Pharma; Nomura raises TP for IndusInd Bank##Top brokerage calls for December 16: Morgan Stanley 'overweight' on Sun Pharma; Nomura raises TP for IndusInd Bank
Indian shares are likely to open on a cautious note on Monday following mixed trades in global markets and amid concerns about the economic slowdown. However, positive development on the US-China trade deal may support equities. Among brokerages, Morgan Stanley is 'overweight' on Sun Pharma, while Credit Suisse is bullish on IndusInd Bank.
Morgan Stanley has an 'overweight' call on the stock with a target at Rs 530 per share. As per the brokerage, it is difficult to assess the severity of Halol observations at this point. READ MORE