Nifty, Sensex Indecisive – Wednesday closing report

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:
 
 

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Nifty, Sensex in No Man’s Land – Tuesday closing report

We had mentioned in Monday’s closing report that Nifty, Sensex were going strong. The major indices of the Indian stock markets were range-bound on Tuesday and closed with minor losses over Monday’s close. On the NSE, there were 766 advances, 949 declines and 349 unchanged. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
 

 
Selling pressure in finance and banking sectors and a slight rise in global crude oil prices dragged the key equity indices lower on Tuesday. According to the analysts, investors were cautious due to the ongoing poll processes in Chhattisgarh, Mizoram, Madhya Pradesh, Telangana and Rajasthan. Counting of votes would take place on December 11. Finance and banking stocks traded over 0.60% lower, while selling pressure was witnessed in telecom, auto and FMCG (fast moving consumer goods) sectors. 
 
In contrast, buying was seen in IT (information technology) and oil and gas stocks. Ahead of the OPEC (Oil and Petroleum Exporting Countries) meeting this week, the crude oil prices surged on Tuesday on expectations of supply cuts by the oil cartel. The benchmark Brent Crude traded higher at $62.32 a barrel. The rupee, after losing 88 paise on Monday, traded flat at Rs70.44 to a US dollar. Domestic markets like stock markets across the world reacted well on Monday to signs of an easing US-China trade tensions as the two countries agreed to halt additional tariffs. But the domestic markets in India had ended on a flat note on Monday due to release of weak macro data.
 
Jammu and Kashmir Governor Satya Pal Malik on Tuesday categorically assured that no changes are intended in the financial status and independence of the J&K Bank. Malik was responding to apprehensions expressed by a cross-section of the society and the bank's staff. “The Bank is regulated by the Reserve Bank of India (RBI) as an old generation private sector bank, by the Registrar of Companies as it is a Government Company under Companies Act and by SEBI as it is a listed company.  It will continue to be regulated by the RBI, SEBI and the Registrar of Companies. No changes are being made here or contemplated. The J&K Bank is registered as a Government Company under the Companies Act. The word PSU has no legal connotation. J&K Bank continues to be a Government owned company. No new changes are being made here. As a Government Company, J&K Bank is a Public Authority under the Right to Information Act (RTI) and hence is automatically subject to the transparency provisions of RTI. Nothing new is being imposed in this regard. Transparency is good for the bank in the long term. However, in view of the concerns expressed, and to give comfort to employees, the government will re-examine the issue of accountability to legislature. J&K Bank shares closed at Rs38.90, up 5.28% on the BSE.
 
The RBI is expected to keep its key interest rate unchanged at its penultimate monetary policy review of the fiscal on Wednesday at a time when inflation - the central bank's key concern - has softened, as has GDP growth, according to the figures for the second quarter ending in September. 
 
At its previous bi-monthly review in October, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) held its repo, or short term lending rate, unchanged at 6.5% in a context of rising crude oil prices posing an inflationary risk as well as a weakening rupee.  Official data earlier showed that the consumer price index (CPI), or retail inflation in October, fell to its lowest in a year at 3.31% owing to lower food inflation, from 3.7% in the previous month. 
 
Besides, from the depths it had plunged, the rupee has since appreciated to a level of just over 70 to the US dollar. Moreover, global crude oil prices have softened sharply from $86 per barrel in October to  current levels of around $60 amidst reports that Saudi Arabia and Russia have reached a deal to cut output so as to shore up falling prices. 
 
Meanwhile, official data on November 30 showed the pace of India's GDP growth slowed during the July-September quarter to 7.1%, from 8.2% in the previous one, mainly on the back of a drop in manufacturing, agriculture and mining. 
 
Reliance Communications (RCOM) said its subsidiary Reliance Realty has submitted a corporate guarantee of Rs1,400 crore to the Department of Telecommunications (DoT) as per the Supreme Court's order on November 30. The apex court in its order directed the DoT to approve RCOM's spectrum trading deal within seven days of the order and told RCOM to furnish Rs1,400 crore worth of corporate guarantee. "The spectrum trading transaction will now be completed and proceeds will clear the dues of Ericsson and minority investors of Reliance Infratel Limited (RITL)," RCOM said in a statement. RCOM's asset monetisation would proceed as per plan, it said. The company’s shares closed at Rs17.10, up 2.89% on the BSE.
 
Shriram EPC has secured two orders worth Rs166.16 crore and Rs59.55 crore from Jharkhand Urban Infrastructure Development Co. Ltd. for augmentation and strengthening of Dhanbad Water Supply Scheme-Phase 1 and Water Supply for Khunti Nagar Panchayat. The company’s shares closed at Rs13.06, up 11.82% on the BSE.
 
Alembic Pharma's subsidiary company Orit Laboratories LLC has received approval from the US FDA (Food and Drug Administration) for its ANDA for Glycopyrrolate Tablets USP. The drug is indicated for use as adjunctive therapy in the treatment of peptic ulcer. The company’s shares closed at Rs615.00, down 0.11% on the BSE.
 
YES Bank reported that Yes Asset Management has received final regulatory approval from SEBI (Securities and Exchange Board of India) to commence its Mutual Fund business. It is to launch two mutual fund schemes - 'YES Liquid Fund' and 'YES Ultra Short Term Fund'. Yes Bank shares closed at Rs176.55, down 0.81% on the BSE.
 
Uflex has been granted US Patent for 20 years covering entire categories of Formable Films that include one or more BOPET layers used in Alu Alu blister packaging. With this, Uflex gets exclusive right of manufacturing & sale of this special BOPET film in US, Europe and India. Uflex  shares closed at Rs291.35, up 4.52% on the BSE.
 
NCC has received two new orders totalling to Rs220.2 crore in the month of November, 2018. The Electrical division of the company secured Rs174.2 crore order and Water division secured order worth Rs46 crore. NCC shares closed at Rs87.00, down 0.34% on the BSE.
 
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:
 
 

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COMMENTS

Karthikeyan

3 months ago

Does daily movement of stock need to be under "Investor Interest"? Seems more liek "trader interest.."..

The Murky World of Loans against Shares of Promoters
For most of us, this article is an eye-opener. One of the promoters of Yes Bank, Rana Kapoor, has raised money against his shares held through investment companies called Morgan Credits and Yes Capital. But no pledge is recorded. The promoter had issued debentures, from his investment company which was holding the shares, to mutual funds (MFs), by promising that he will also always maintain...
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