Thank you readers and before we end our rolling coverage of the stock markets today, here are the major highlights and trends that impacted the trade today:

-Sensex, Nifty end at day’s low after hitting record highs at the open.

Kotak Mahindra Bank reported a 24 percent rise year-on-year (YoY) in its third-quarter standalone net profit at Rs 1,596 crore as compared to Rs 1,291 crore in the same quarter last year. The private sector bank in its Q3FY20 earnings reported an increase of 17 percent year-on-year (YoY) standalone net interest income (NII) to Rs 3,429.5 crore as compared to Rs 2,926 crore in the corresponding quarter last year. READ MORE

The Nifty Midcap 100 index and the Nifty Smallcap 100 index snapped their seven-day gaining streak as some investor booked profits in the stocks. The Nifty Midcap 100 has risen 7 percent in the previous nine sessions, while the Nifty Smallcap 100 has gained 7 percent in seven days. However, the broader market was outperforming benchmark indices as investors continue to buy attractively valued stocks. Investors are hopeful that the government will announce some measures in the Union Budget, such as increased spending on infrastructure or to boost rural spending.

The stock price of NHPC Limited was locked in an upper circuit on Monday after it was included in the Nifty CPSE (Central public sector enterprises) index.

Along with NHPC, NMDC, Power Grid and Cochin Shipyard will also be included in the Nifty CPSE Index, while IOC and PFC will be excluded from Nifty CPSE Index.

The Nifty CPSE Index revision will be effective from January 23.

Intraday, the stock rallied 20 percent at Rs 29.10 per share on the NSE and also hit its 52-week high level. 

1. Benchmark equity indices extended losses on Monday after heavyweights including IOC and Zee Entertainment along with others slipped in-trade. 

2. At 1:56 pm, the Sensex was trading 310.97 points or 0.74 percent lower at 41,634.40 while the Nifty50 index traded 94.75 points or 0.77 percent lower at 12,257.30. 

3. Broader indices also traded lower, with Nifty Smallcap100 and Nifty Midcap100 indexes down 0.41 percent and 0.36 percent respectively. 

4. India's VIX (Volatility Index) was up 7.83 percent in this hour of trade, which indicates a negative trading session today. 

5. Power Grid, ​Bharti Infratel, Bharti Airtel, Dr Rededy's Laboratories and Asian Paints were the Nifty50 top gainers while Indian Oil Corporation, Zee Entertainment, Kotak Mahindra Bank, TCS and Reliance Industries remained the top losers. 

Kotak Mahindra Bank reported its third-quarter standalone net profit at Rs 1,596 crore.

The private sector bank in its Q3FY20 earnings reported an increase of 17 percent year-on-year (YoY) standalone net interest income (NII) to Rs 3,429.5 crore as compared to Rs 2,926 crore in the corresponding quarter last year.

Net interest margin (NIM) this quarter came in at 4.69 percent, up from 4,31 percent YoY.

Click here to read Kotak's Q3FY30 earnings. 

Indian Oil (IOC) shares plunged over 7 percent on Monday after the Index Maintenance Sub-Committee (IMSC) of NSE Indices Limited decided to exclude the country's flagship oil company from the Central Public Sector Enterprises (CPSE) index. Further, sell flows in IOC can be seen to the tune of Rs 1,950 crore, reported CNBC-TV18, citing people aware of the development.

On the Bombay Stock Exchange (BSE), IOC shares fell as much as 7.25 percent to an intraday low of Rs 113.75 apiece.  On the National Stock Exchange (NSE), IOC shares declined to Rs 113.70 apiece intraday, down 7.29 percent.

At 9:58 am, IOC shares traded 3.79 percent lower at Rs 118 apiece on the BSE. The benchmark Sensex index was 0.18 percent down at that time.

Apart from IOC,  Power Finance Corp (PFC) will also be excluded, while Cochin Ship, NHPC, NMDC and Power Grid will be included in the index. These changes will become effective from January 24, 2020 (close of January 23, 2020), the IMSC of NSE Indices said in a release on Friday.

Nifty CPSE Index is constructed in order to facilitate government’s initiative to disinvest some of its stake in selected CPSEs. The government opted for the exchange-traded fund or ETF route for disinvestment.

The Nifty IT traded under pressure on Monday, dragged by Tata Consultancy Services (TCS), HCL Technologies and Wipro, after a positive start. The IT sector gauge opened at 16,389 and touched a high of 16,465 and a low of 16,237.

At 9.57 am, the index traded at 16,257, down well over 0.6 percent, while the broader NSE Nifty50 was 78 points up at 12,430.

As many as seven stocks, including TCS, Wipro, and HCL Technologies, declined by up to 1.42 percent in the index comprising of 10 shares. MindTree, Infosys and Tech Mahindra were fighting for the bulls, rising by up to a percent.

Click here to read the full story.

Here's what they said:

1. Have moved an application seeking more time for repayment

2. Asking for permission to meet the Department of Telecom (DoT) to negotiate payment terms

3. Didn't want to seek relief from only DoT as the court has directed payment of dues

4. Want court's permission to move DoT seeking relief on payment timeline

5. January 23 deadline won't hold if Supreme Court gives nod to negotiate with the telecom department

6. No plan of filing the curative petition as of now

7. The decision to move curative petition will be decided later

8. Do not think settlement plan with DoT will be decided by January 23

1. Benchmark equity indices extended losses on Monday after heavyweights including TCS, Reliance Industries, HDFC Bank, IOC slipped in-trade. 

2. At 12:16 pm, the Sensex was trading 174.10 points or 0.42 percent lower at 41,768.69 while the Nifty50 index traded 56.85 points or 0.46 percent lower at 12,295. 

3. Broader indices also started to trade lower, with Nifty Smallcap100 and Nifty Midcap100 indexes down 0.35 percent and 0.24 percent respectively. 

4. India's VIX (Volatility Index) was up 7.18 percent in this hour of trade, which indicates a negative trading session today. 

5. Bharti Infratel, Power Grid, BPCL, ICICI Bank and Asian Paints were the Nifty50 top gainers while Indian Oil Corporation, Zee Entertainment, TCS, Adani Ports and Vedanta remained the top losers. 

The stock price of Fine Organic Industries surged over 5 percent intraday on Monday after ICRA upgraded the credit ratings of the company. 

The company in its BSE regulatory filing said, "ICRA has upgraded the long-term rating from 'A+ (Positive)' to 'AA- (Stable)."

Meanwhile, the short-term credit rating of the company remained unchanged at 'A1+'. 

At 11:20 am, the shares were trading 5.09 percent higher to Rs 2,230 per share on the NSE while on an intraday basis, the share price surged 5.46 percent at Rs 2,237.80. 

Reliance Industries Ltd (RIL) on Friday reported its highest-ever quarterly consolidated net profit at Rs 11,640 crore for the third quarter ended December 31, up by 13.5 percent from the year-ago period. Harshvardhan Dole of IIFL gave his analysis Reliance Industries’ Q3FY20 numbers in an interview with CNBC-TV18.

"The results were mixed bag while petrochemical was worse than what we had expected partly it was offset by refining and of course retail and Jio continue to surprise positively.

“Therefore, post results we have tweaked this year’s number by 4-4.5 percent and upped the next two years’ numbers by about 5-9 percent to reflect the performance of the core business and tariff hike that Jio has taken. So our sum of the parts stands revised to Rs 1,725 and RIL is our top pick in the sector,” he said.

Read what Harshvadhan Dole is expecting from the giant conglomerate.

The 2020 Union Budget process kicks off officially on Monday with the customary 'halwa' ceremony marking the start of printing documents for the Budget.

This year the Budget will be presented at a time when growth has dropped to a six-year low amidst a persistent slowdown in the economy and weak demand.

Besides, consumption, investment, the outlook and the targets likely to be missed for the fiscal deficit, tax revenues and disinvestment, all add up to a dismal scenario for the current fiscal.

The GDP growth for the current fiscal ending in March is expected to be 5 percent.

Here's more to the story.

The share price of Tata Consultancy Services slipped over 1 percent intraday on Monday after brokerages remain bearish on the stock. 

Credit Suisse in its report said, "This is the third successive revenue miss, and the valuations are also steep at current levels. The company is a high-quality franchise but is not immune to an uncertain environment." Therefore, the brokerage placed a 'neutral' rating on the stock with a target price at Rs 1,950/share. 

Meanwhile, Citi Research maintained a 'sell' call with a target price at  Rs 1,975 apiece. 

It said that the company will be impacted by the challenges in BFSI/retail divisions while expectations remain elevated. 

In a fallout of the Karvy Stock Broking's malpractices, market regulator Securities and Exchange Board of India (Sebi) may soon block brokers from using the power of attorney (PoA) privilege, reported Economic Times. PoA gives the brokers the control of clients' demat accounts, giving an opening for misuse as it was done in Karvy's case.

“Power of attorney will be allowed only for settlement purpose, not for collateral. It will be easy to monitor as clients will be able to see where their shares are lying,” a person was cited as saying in the report.

However, in case of a default by the client, brokers will be able to invoke the pledge without the consent of the client. The market watchdog is likely to implement the proposal soon, the Economic Times report added.

Earlier, Karvy illegally pledged client's shares with banks and non-banking finance companies (NBFCs) to raise money which was then diverted to its other businesses such as real estate.

In December, Sebi rejected Karvy's plea to use its clients' power of attorney to settle trades done by them and said securities worth Rs 2,300 crore of more than 95,000 clients were illegally transferred by the broker.

Indian shares are set for a positive start on Monday, tracking positive global cues and amid Q3FY20 corporate earnings. Reliance Industries, Tata Consultancy Services, HDFC Bank and HCL Technologies are in focus after Q3 results. Here are the top brokerage calls for Friday:

1. Morgan Stanley on Reliance Industries: The global brokerage has maintained an 'Overweight' stance on Reliance Industries, with a target price of Rs 1,753 per share after 6 percent earnings growth which was above its estimate.

Click here to read more

Six of the top-10 most valued Indian firms together added Rs 62,772.95 crore in market valuation last week, with HUL and RIL emerging as the biggest gainers. Among the top 10, Reliance Industries, TCS, HUL, Infosys, Kotak Mahindra Bank and ITC witnessed gains in their market capitalisation (m-cap) for the week ended Friday, while HDFC Bank, HDFC, ICICI Bank and SBI suffered losses. READ MORE