The major indices of the Indian stock markets suffered a sharp correction on Monday and closed with losses over Friday’s close. On the NSE, there were 339 advances, 1,382 declines and 350 unchanged. The trends of the major indices in the course of Monday’s trading are given in the table below:
Negative global markets along with caution ahead of the results of Assembly elections in five states and a rise in crude oil prices suppressed the key Indian equities indices during Monday's trade session. The key indices—the S&P BSE Sensex and NSE Nifty50 - had a gap-down opening and subsequently shed over 655 points and 205 points each on an intra-day low basis. According to market observers, selling pressure in banking, consumer goods, oil and gas and capital goods stocks along with continuous outflow of foreign funds accelerated the downward trajectory of the equity indices. The BSE market breadth was bearish with 1,787 declines and 546 advances.
On Tuesday, the results of Assembly elections in Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana and Mizoram will be declared. The elections are considered as a crucial indicator of public mood before the Lok Sabha elections next year. Besides the election outcome, a rise in crude oil prices after the Organization of Petroleum Exporting Countries (OPEC) and Russia decided to go in for a production cut of 1.2 million barrels per day from 2019 might hinder the markets' attempts to arrest the fall. Investors were also spooked due to fears of slowing global economic growth and an escalation in trade protectionist measures after the arrest of Huawei's Global CFO over alleged violation of US sanctions on Iran. On the currency front, the Indian rupee weakened to 71.32 against the US dollar from its previous close of 70.81.
The sale of passenger vehicles in the domestic market declined by 3.43% on a year-on-year basis in November to 266,000 units, according to the Society of Indian Automobile Manufacturers (SIAM) data on Monday. The data showed that domestic sales of passenger vehicles in November 2017 stood at 275,440 units. Among the sub-segments, the sale of passenger cars in the domestic market during the month stood at 179,783 units, 0.91% lower than the 181,435 units sold in the year ago period.
Further, the number of utility vehicles sold in India rose by 10.18% to 69,884 units in November 2018, whereas 16,333 units of vans were sold last month, up from 16,198 units in November 2017. However, the commercial vehicle segment's domestic sales rose 5.71% to 72,812 units last month, the SIAM data showed. Nifty Auto Index closed at 8,784.25, down 0.96% on the BSE.
Petrol prices across the four metros have declined by nearly 15% from the record high levels they had reached in October. In Delhi, petrol was priced at Rs 70.70 per litre, lower by 14.64% from the all-time high of Rs 82.83, recorded on October 16 and 17, data from the Indian Oil Corp's website showed. On Friday, the petrol price in the national capital was Rs 70.92 per litre. In the other metros of Kolkata, Mumbai and Chennai, the cost of petrol has declined 14.05%, 13.60% and 14.83%, respectively from the highs reached on October 16 at Rs 72.75, Rs 76.28 and Rs 73.33 per litre on Saturday. On Friday, prices in the respective cities were Rs 72.97, Rs 76.50 and Rs 86.10 per litre. The slide in domestic fuel prices comes in line with the recent decline in crude oil prices due to high supplies. However, as the Organisation of Petroleum Exporting Countries (OPEC) on Friday decided to reduce its oil supply by 1.2 million barrels per day for the first half of 2019, prices may see an up-turn leading to a reversal in India's domestic fuel prices movement. Indian Oil Corporation shares closed at Rs134.30, down 3.51% on the NSE.
Lupin's Pithampur (Unit-3) facility received EIR from US FDA (Food and Drug Administration). This was a Pre-approval inspection for Albuterol Sulfate Inhalation product. Lupin's Pithampur (Unit 3) facility manufactures Dermatological Products, Dry Product Inhalers and Metered Dose Inhalers. Lupin shares closed at Rs809.55, down 3.77% on the NSE.
Escorts and Kubato Corporation, Japan, has entered into a global JV (joint venture) agreement with an initial investment of Rs300 crore for technology collaboration and joint manufacturing of high-end, value-oriented utility tractor range. This is to establish a new facility with initial capacity of 50,000 units. Escorts shares closed at Rs601.10, down 4.08% on the NSE.
Alembic Pharmaceuticals has received approval from the US FDA for its ANDA - Olopatadine Hydrochloride Ophthalmic Solution USP. The drug is indicated for the treatment of the signs and symptoms of allergic conjunctivitis. The company’s shares closed at Rs617.30, up 0.21% on the NSE.
Jet Airways reported a downgrade in Credit rating by ICRA. Long term Loans & NCDs were downgraded to '[ICRA] C' from '[ICRA] B' with Negative Outlook. The reason was that there were delays in the implementation of proposed liquidity initiatives by the company. The company’s shares closed at Rs256.50, down 7.15% on the NSE.
Larsen & Toubro reported that its Power T&D business has won orders worth Rs2,547 crore. The orders are for 220kV Transmission line in Tanzania, 230kV Substation in Thailand, 132kV Substations and associated Transmission Lines in Jharkhand and 220kV & 132kV Transmission lines were West Bengal. L & T shares closed at Rs1,372, down 1.99% on the NSE.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: