We had mentioned in Wednesday’s closing report that Nifty, Sensex were under pressure again due to global trends. The major indices of the Indian stock markets suffered a correction on Thursday and closed with significant losses over Wednesday’s close. On the NSE, there were 553 advances, 1,148 declines and 361 unchanged. The trends of the major indices in the course of Thursday’s trading are given in the table below:
Amid weak factory data from China and India earlier in the week fuelling concerns of a slowdown in global growth and a sustained weakness in the domestic currency pulled the benchmark Sensex down on Thursday. Energy, oil and gas and capital goods came under selling pressure, while realty traded in the green on the expectation that the GST (Goods and Services Tax) Council at its January 10 meeting would bring down the tax rate on under-construction housing to 5% from 12%. FMCG (fast moving consumer goods) stocks managed to advance.
The Indian currency weakened by 12 paise on Thursday to trade at 70.29 per dollar, against the previous close of 70.17 per dollar.
The HDFC's Board will consider raising Rs45,000 crore through issuance of secured redeemable non-convertible debentures (NCDs). Accordingly, the company's Board will consider the issuance of NCDs on private placement basis in a meeting on January 29, 2019. "The board of directors of the corporation shall consider issuance of secured redeemable non-convertible debentures, in various tranches under Shelf Disclosure Document, aggregation Rs45,000 crore on a private placement basis in accordance with the approval granted by the shareholders of the corporation at the 41st Annual General Meeting held on July 30, 2018," the company said in a regulatory filing to the BSE. HDFC shares closed at Rs1,937.00, down 2.20% on the NSE.
Lending major Bank of Baroda (BoB) finalised the equity share exchange ratio for amalgamation of Dena Bank and Vijaya Bank, subject to statutory regulatory approval. Bank of Baroda shares closed at Rs119.60, up 0.21% on the NSE. Dena Bank shares closed at Rs14.40, down 19.55% on the NSE. Vijaya Bank shares closed at Rs47.50, down 6.95% on the NSE.
Rating agency ICRA has downgraded financially-troubled Jet Airways' short and long term credit facilities after the company on Tuesday reported a delay in paying interest and instalment due to banks. The downgrade comes at a time when India's airline sector faces heavy competition with low air fares. Accordingly, the airline's long term rating assigned to "Long term Loans" and "Non-Convertible Debentures" was revised to D (negative outlook) from C (negative outlook). "The ratings downgrade considers the delays by the company in the payment of the interest and principal instalment due on December 31, 2018 due to cash flow mismatches," ICRA said in a statement. "There have been delays in the implementation of the proposed liquidity initiatives by the management, which have aggravated its liquidity." According to the statement, the company has already been delaying its employee salary payments and lease rental payments to the aircraft lessors. "Furthermore, the company has large debt repayments due over December 2018 to March 2019 (Rs1,700 crore), FY2020 (Rs2,444.5 crore) and FY2021 (Rs2,167.9 crore)," the statement said. Jet Airways shares closed at Rs246.25, down 6.56% on the NSE.
Two-wheeler major Hero MotoCorp reported a 3.96% decline in its sales for December 2018 on a year-on-year basis. According to the company, sales of two-wheelers decreased to 453,985 units, compared to 472,731 units sold in December 2017. In terms of calendar year 2018, the company sold 8,039,472 units of motorcycles and scooters. On Financial Year 2019 basis, the cumulative sales of the company in the nine month period (April-December 2018) have now risen to 6,037,901 units. "Year 2018 was a challenging year for the global economy. While the continuing volatility in currency and commodities slowed down the pace of growth, the global geopolitical and trade conflicts also affected sentiments in markets and industries across the world," said Pawan Munjal, Chairman, Hero MotoCorp. "The increased cost of two-wheeler insurance ahead of the Diwali festive season and the prevailing liquidity crunch in the market impacted the overall momentum of growth in the industry during the entire third quarter." Hero MotoCorp shares closed at Rs3,011.15, down 1.16% on the NSE.
Telecom major Reliance Jio led the subscription race in October with an addition of around 1.05 crore subscribers, followed by BSNL, as all the other major players registered a decline in their subscriber base. The subscriber base of the Mukesh Ambani-led Reliance Jio increased to around 26.27 crore, from 25.22 crore subscribers reported in September, data released by the Telecom Regulators' Authority of India (TRAI) showed. Total wireless subscribers, including GSM, CDMA and LTE, increased by 0.6 per cent from 116.92 crore in September 2018 to 117 crore at the end of October, the statement from TRAI said. "The wireless subscription in urban areas increased from 647.70 million (64.77 crore) at the end of September 2018 to 648.24 million (64.82 crore) at the end of October 2018, and in rural areas also it increased from 521.59 million (52.15 crore) to 521.77 million (52.17 crore) during the month," it said. Reliance Industries shares closed at Rs1,090.30, down 1.46% on the NSE.
Despite strong demand along with lower input costs, the growth of India's manufacturing sector eased in December, key economic data showed. According to the Nikkei India Manufacturing Purchasing Managers' Index (PMI), the composite indicator of manufacturing performance showed an index reading of 53.2 in December from 54 in November 2018. An index reading of above 50 indicates an overall increase in economic activity, or growth, and below 50 an overall decrease.
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: