Market Wrap
Closing Bell
Indian shares snapped their four-day winning streak as investors felt a rally in automakers was overdone and prospects of crude oil prices going higher led to a slide in select oil related stocks.
The S&P BSE Sensex slid 0.3 percent to 26,559 while the NSE Nifty lost 0.4 percent to 8,192. The market breadth, which started on a strong note, ended firmly in favour of the sellers at 1,005 declines, 592 advances and 283 stocks remaining unchanged.
In Conversation With Jefferies' Govindarajan Chellappa
“Nifty Close To Near-Term Bottom; May Head Higher”
On Bloomberg Quint’s Surf’s Up, which tracks weekly trends in equity derivatives, K Subramanyam of Altamount Capital said major equity indices are closer to the lower end of the range and there is more upside in store. He preferred oil and gas stocks in the near term.
For more on the market levels and stocks to watch, listen in.
Reliance Jio Crossed 50 Million Customers In India: Ambani
Reliance Jio, the telecom unit of Reliance Industries, has crossed the 50 million customer mark in India, said billionaire promoter Mukesh Ambani. He said the company is in the process of doubling digitally enabled outlets to 400,000 by March.
- Jio working with all operators to cut call drops; incumbent operators showed anti-competitive approach
- Company continues to monitor capacity for voice calling
- Says customers using 25 times more data on average than broadband users.
- Faced few issues of data speed; about 8 percent of Jio towers faced data congestion
Bharti, Idea Sink After Jio Extends Free Offer
Reliance Jio extended free services to all new customers from December 4 to March 31, 2017.
Existing Reliance Jio customers will also been transferred to this new plan that’s been named the ‘Happy New Year Plan’, providing them with the free services till March 31, 2017.
Sheela Foam IPO Gets Thumbs-Up From QIBs
Steel Strips Wheels Surges
Shares of the company surged as much as 10 percent to Rs 602 after it saw a turnover growth of 22 percent for the month of November led by a strong performance in the tractor and the commercial vehicle segment.
While total wheel-rim sales grew 14 percent in the year-on-year period, a high base in the previous year led to the export segment seeing a degrowth of 24 percent this month.
Jewelry Stocks Shine Post Excise Duty Removal
Shares of Titan Company Ltd., PC Jewelers Ltd., and TBZ Ltd., gained between 3-13 percent after the government decided to scrap excise duty on branded gold coins.
Here are how the stocks are performing as of 12:25 p.m.:
- Titan Company Ltd. (up 3.06 percent to Rs 333.40)
- PC Jewellers Ltd. (up 2.75 percent to Rs 278.65)
- TBZ Ltd. (up 13.03 percent to Rs 71.15)
Aviation Stocks Continue To Sulk Despite Jet Fuel Price Cut
A reduction of 3.7 percent in aviation turbine fuel price failed to enthuse shares of airline companies. Jet fuel costs account for 30 to 40 percent of the total expenses of Indian passenger airlines.
- SpiceJet (-3.7 percent to Rs 61)
- Jet Airways (-4 percent to Rs 380)
- InterGlobe Aviation (-1.3 percent to Rs 848)
Eicher Motors Surges After November Exports More Than Triple
Shares of Eicher Motors Ltd. rose as much as 3.8 percent after the automaker reported 41 percent increase in total sales and over three-fold jump in exports for the month of November. (More details HERE)
India Manufacturing PMI Down To 52.3 In November
The Nikkei India Manufacturing Purchasing Managers' Index, or PMI, dropped to 52.3 in November from October's 54.4.
PMI data for November showed that the sudden withdrawal of high-value banknotes in India caused problems for manufacturers, as cash shortages hampered growth of new work, buying activity and production.Pollyanna De Lima, Economist at IHS Markit and author of the report.
A reading above 50 indicates economic expansion, while one below 50 points toward contraction. November's PMI shows India's manufacturing sector continued to expand but at a slower pace.
Maruti Suzuki Pares Losses After Nov Sales Rise 12% YoY
Shares of the country’s largest carmaker pared its opening losses and rose 0.4 percent after it reported a 12.2 percent jump in sales for the month of November.
Domestic sales grew 14.2 percent to 1,26,325 units compared to 1,10,599 units last October. Exports, on the other hand, took a hit for the second straight month, falling 9.8 percent to 9,225 units compared to 10,225 units in November 2015.
Sales of utility vehicles such as Gyspsy, Vitara Brezza and Ertiga continued to outperform, surging 98.1 percent to 17,215 units.
Movers & Shakers: HCC, Reliance Communications, Wipro And More
Rupee Weakens Against Dollar
The rupee was little changed after softening 13 paise to 68.51 against the US dollar in early trade, snapping its two-session gaining spree at the Interbank Foreign Exchange.
Dealers attributed the rupee's fall to the dollar's strength against some other currencies overseas on speculation that the Federal Reserve will raise interest rates in December but a higher opening of the domestic equity market and country's GDP accelerating to 7.3 per cent in the September quarter, capped the fall.
Yesterday, the rupee had continued its strong recovery for the second day, surging by 27 paise to close at 68.38 against the US currency.
(With inputs from PTI)
Update: Sensex, Nifty Pare Opening Gains
Most Indian stocks pared their opening gains as investors booked profit after Nifty’s longest winning streak in nearly six months.
The Sensex was down 0.1 percent to 26,616 while the Nifty retested the 8,200-mark. The market breadth turned slightly in favour of the sellers with 736 declines, 726 advances while 400 stocks remained unchanged.
Opening Bell
Indian shares climbed for a fifth straight session as gains in energy producers countered losses in automakers and tech companies.
The S&P BSE Sensex gained as much as 04 percent to 26,717, the highest level in nearly three weeks. The NSE Nifty advanced 0.3 percent to 8,248 – the index is on its longest winning streak since July 4.
The market breadth was also encouraging at 1,026 advances, 411 declines while 415 stocks remained unchanged.
Money Market Heads Up
Stocks To Watch
- Hindustan Construction: To receive 75 percent arbitral award amount of Rs 2,000 crore
- Indian Oil: Raises gasoline price; cuts diesel, ATF rates
- Infosys: Marcus by Goldman Sachs implements Finacle
- Reliance Industries: Chairman Ambani to make statement today
- Tata Steel: Inaugurates 55,000tpa ferrochrome plant in Gopalpur, Odisha at Rs 542 crore cost
- Wipro: In pact to sell of ecoenergy division to Chubb Alba for $70m
- Shilpa Medicare to consider issue of shares, securities
- 3i Infotech in talks to sell IMS unit to SIFL (Mint)
IPO Watch
- Sheela Foam IPO by existing shareholders’ gets 6% demand in 2nd day of sale yesterday, offer scheduled to close today
For a complete list of stocks to watch, click HERE
5 Things To Watch Today
Talking Points
- India July-September quarter GDP expands 7.3 percent YoY; estimate 7.5 percent
- Economy grows less than estimated before RBI rate review
- India to release full year GDP estimate in January: TCA Anant
- India Oct. key industries’ output rises 6.6 percent YoY
- Refinery products output +15.1 percent YoY, steel output +16.9 percent YoY
- April-October budget gap at Rs 4.24 lakh crore or 79.3 percent of FY17 estimate
- India, Iran, Afghan hope to sign road, rail accords: Abdali
- Mastercard sees Modi’s move to speed up shift to cashless India
- India signs deal with U.S. for 145 M777 howitzer guns (PTI)
- Delhi court refuses to stay connectivity fund levy on airlines
- Cabinet approves Mumbai transport project-phase 3
- Accel debuts fifth India fund to invest $450 million in startups
- Global funds sell Rs 434 crore of local stocks; domestic funds buy Rs 677 crore yesterday: Provisional data
Good Morning!
The Nifty futures on the Singapore Stock Exchange, an early indicator of Nifty’s performance in India, climbed 0.2 percent to 8,260.
Asian equities rallied this morning, as a deal to cut global oil output fuelled gains in energy shares.
OPEC agreed to reduce collective production to 32.5 million barrels a day, Iranian Oil Minister Bijan Namdar Zanganeh said in Vienna Wednesday. Goldman Sachs Group Inc. said the pact means oil could rise to $55 a barrel in the first half of next year.
Japanese exporter stocks got a boost after better-than-expected private U.S. jobs data pushed the dollar back to a nine-month high versus the yen.
Private payrolls in the U.S. climbed by 216,000 this month, after a 119,000 gain in October that was revised lower, ADP data showed Wednesday. Economists are predicting an 180,000-worker increase in non-farm payrolls in Friday’s data, after they climbed by 161,000 in October.
Reports on pending home sales and the Federal Reserve’s Beige Book are due later today, as well as a private release on employment. Investors are also awaiting the government payrolls data on Friday for clues on the pace of future interest-rate hikes from the Federal Reserve.
Gold fell for a third day, losing as much as 0.9 percent, after sliding 1.3 percent last session to its lowest level since February.
U.S. stocks mostly fell on Wednesday, but ended with gains for November on speculation president-elect Donald Trump will increase fiscal spending to stimulate the world’s largest economy.
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