We had mentioned in Tuesday’s closing report that Nifty, Sensex were in no man’s land. The major indices of the Indian stock markets suffered a correction on Wednesday and closed with losses over Tuesday’s close. On the NSE, there were 467 advances, 1,242 declines and 353 unchanged. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
In its penultimate monetary policy review of the current fiscal, the RBI (Reserve Bank of India) on Wednesday kept its key lending rate for commercial banks unchanged at 6.5% for the second time in succession. The Reserve Bank of India also made no changes to its stance of "calibrated tightening" adopted in the policy review of October India's central bank keeps key lending rate intact at 6.5%.
Caution on account of the monetary policy and broadly negative global stock markets dragged the key Indian equity indices lower on Wednesday. All sectoral indices on BSE and NSE traded in the red led by metal, auto and healthcare stocks. According to analysts, the markets on Wednesday are affected more from the global factors rather than the RBI monetary policy.
In addition, crude oil prices remained volatile amid expectations of supply cuts by OPEC (Oil and Petroleum Exporting Countries), the group of 15 of the world's top oil producers which is to meet on December 7. Brent crude traded lower at $61.02 per barrel. The rupee continued to depreciate and traded at Rs70.53 to a US dollar from its close of Rs70.49.
A Delhi court on Wednesday sentenced former Coal Secretary H.C. Gupta and two other former government officials to three years in jail in a coal block allocation case. CBI Special Judge Bharat Parashar also slapped a fine of Rs50,000 on Gupta and former officials K.S. Kropha and K.C. Samria. He also sentenced Vikash Metal and Power Ltd (VMPL) Managing Director Vikash Patni and authorised signatory Anand Mallick to four years in jail. Last week the court convicted all five of conspiring to get the Moira-Madhujore coal block of West Bengal in favour of VMPL. It was the sixth judgment by the Special Central Bureau of Investigation (CBI) court that is exclusively dealing with the coal block allocation cases. Coal India shares closed at Rs245.30, down 2.76% on the NSE.
The Enforcement Directorate has attached Rs117.09-crore movable and immovable properties of Prakash Industries in connection with its ongoing probe against it in allocation of Fatehpur coal block in Chhattisgarh in 2008, the agency said on Tuesday. Prakash Industries shares closed at Rs85.60, down 7.61% on the NSE.
Lupin reported that the US FDA (Food and Drug Administration) completed inspection carried out at the company's Mandideep location with 4 observations for Unit-2, cardiovascular "Pril" API facilities, 10 observations for Unit-1, Cephalosporin facilities and 8 observations for Cephalosporin Solid Oral Dosage Form facility. Lupin shares closed at Rs858.45, down 3.29% on the NSE.
Larsen & Toubro reported that the construction arm of L&T has won orders worth Rs2,106 crore across its businesses. A major order of Rs1,954 crore has been secured by its Water & Effluent Treatment business from Andhra Pradesh Capital Region Development Authority (AP CRDA). L & T shares closed at Rs1,397.05, down 1.61% on the NSE.
Alembic Pharma has received approval from the US FDA for its ANDA for Candesartan Cilexetil Tablets USP. Candesartan cilexetil tablets are indicated for the treatment of hypertension in adults and in children 1 to 17 years of age. The company’s shares closed at Rs619.15, up 0.52% on the NSE.
NTPC has won 85 MW Solar capacities from the 550 MW tender floated by Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) for grid-connected solar projects. The bid tariff rate is Rs3.02/unit, applicable for 25 years. NTPC shares closed at Rs140.70, down 1.75% on the NSE.
Kridhan Infra reported that the Vijay Nirman Company has received a LoI (Letter of Intent) worth Rs105 crore for construction of major and minor bridges etc. for Package 4 of the Mumbai-Nagpur Super Communication Expressway in Maharashtra. The project is expected to be completed over a period of 12 months. Kridhan Infra shares closed at Rs48.40, up 2.76% on the NSE.
TCS has launched its intelligent power plant solution - TCS IP2. The solution combines AI (artificial intelligence), IoT (Internet of Things), and Digital Twin Technologies to support critical power plant assets, enhance reliability, improve flexibility, cut emissions and reduce operating costs by 2%-3%. TCS shares closed at Rs2,003.90, down 0.35% on the NSE.
Absconding liquor baron Vijay Mallya, wanted in a Rs9,000 crore bank loan default case, on Wednesday offered to pay back "100% of the principal amount" as speculations over his extradition were raised after AgustaWestland middleman Christian Michel was brought to Delhi for interrogation. State Bank of India shares closed at Rs280.20, down 0.83% on the NSE.
US stocks plunged on Tuesday with all three major indices erasing more than 3%, amid worries over inverted yield curve signalling a possible economic slowdown. The Dow Jones Industrial Average decreased 799.36 points, or 3.10%, to 25,027.07. The S&P 500 decreased 90.31 points, or 3.24%, to 2,700.06. The Nasdaq Composite Index fell 283.09 points, or 3.80%, to 7,158.43. The US three-year treasury note yield stood at 2.805%, higher than the five-year note on Tuesday. The inverted yield curve caught investors' attention because historical statistics showed that when short-term yields trade above longer-term rates a recession could follow. Fears of a possible economic slowdown were also spurred by weaker-than-expected quarterly guidance from Toll Brothers. The US leading builder reported its first fall in quarterly orders in more than four years, hit by rising interest rates and higher home prices. The company's results are the latest evidence of slowing housing demand, after years of steady recovery following the housing crash a decade ago. The US Census data showed new home sales have declined for 11 straight months.
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: