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Nifty Erases Entire 2018 Gains As Exit Polls Predict Close Battle For BJP

Nifty Erases Entire 2018 Gains As Exit Polls Predict Close Battle For BJP
NSE Building stands in Mumbai. (Photographer: Rajendra Giri/BloombergQuint)
7 years ago
Shares of the Uday Kotak-led private sector lender fell as much as 4.48 percent, the most in over a month, to Rs 1,222.35 after it filed a writ petition in Bombay High Court against Reserve Bank of India's decision on preference shares, Kotak Mahindra Bank said in an exchange notification.

  • Hindustan Zinc has 33 lakh shares change hands in a block deal. Stock down 0.8 percent at Rs 270.40.
  • Buyers and sellers were not immediately known

    Source: Bloomberg

  • Mangalam Drugs: The Mumbai-based drugmaker rose as much as 17.4 percent to Rs 85 after its unit-1 facility received approval from World Health Organisation.
  • Ashoka Buildcon: The Mumbai-based construction company snapped its three-day losing streak and rose as much as 6.69 percent to Rs 127.55 after it won a railway project from Rail Vikas Nigam Limited.
  • Indian Oil: The state-run oil refiner rose as much as 4.2 percent at Rs 135.15 as its board will consider buyback and dividend on Dec. 13.
  • ITI Ltd: The Bangaluru-based communications equipment maker snapped its five-day losing streak and rose as much as 7 percent to Rs 92.90.

Finance Minister speaks on National Pension Plan, says changes in NPS to benefit employees.

Arun Jaitley says:

  • Government has approved to raise contribution of central government for National Pension Scheme to 14 percent from 10 percent
  • Employees contribution to remain at 10 percent
  • Government has made entire 60 percent of withdrawal by employees during retirement tax free
  • Dates for changes to come into effect will be notified later

Stocks linked to billionaires Mukesh Ambani, Anil Ambani and Gautam Adani that rallied after Narendra Modi won the nation’s general elections in 2014, dropped Monday after exit polls showed India’s Prime Minister is set for tight electoral contests in key states before general elections next year.

  • Ambani companies: Reliance Industries falls as much as 4.5 percent, Reliance Communications drops 5.7 percent
  • Adani companies: Adani Power down as much as 8.4 percent, Adani Ports and Special Economic Zone -4.2 percent

Source: Bloomberg

Gold traded near the highest level in five months amid a retreat in Asian equities and U.S. stock futures on the potential escalation of tensions between Washington and Beijing.

Haven assets are rising after China’s vice foreign minister summoned the U.S. ambassador Terry Branstad in protest over the arrest of Huawei Technologies Co.’s chief financial officer, and on concerns over China’s slowing economy.

Traders are also assessing if the Federal Reserve will pursue a slower pace of U.S. interest rate increases after jobs and wages rose by less than forecast in November.

Source: Bloomberg

Indian equity benchmarks continue to trade on a weak note dragged by weakness in Reliance Industries, Kotak Mahindra Bank and HDFC.

The S&P BSE Sensex fell 1.43 percent or 514 points to 35,160 and the NSE Nifty 50 Index dropped 1.5 percent or 157 points to 10,537.

All 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Energy Index's 2.6 percent.

Selling pressure was broad-based as the S&P BSE MidCap Index fell 1.4 percent and the S&P BSE SmallCap Index slumped 1.5 percent.

Shares of the Mumbai-based automobile maker fell 2.62 percent to Rs 158.15 after its global wholesales declined 7 percent (YoY) to 104,964 units.

  • Total passenger vehicles sales 66,429 units; lower 7 percent (YoY)
  • Jaguar Land Rover sales were 49,312 units in November, including 4,144 units from JV with Chery Automobiles
  • Jaguar sales 15,114 units; Land Rover at 34,198 units

  • Kalpataru Power: The Mumbai-based power transmission line tower maker rose as much as 2.2 percent to Rs 348.95. Trading volume was 18 times its 20-day average.
  • JB Chemicals: The Mumbai-based drugmaker fell as much as 2.94 percent to Rs 295. Trading volume was 40 times its 20-day average.
  • SJVN: The Shimla-based power generation company fell as much as 5 percent to Rs 24.75. Trading volume was 18 times its 20-day average.
  • NLC India: The Cuddalore-based mining and power company fell as much as 9.24 percent to Rs 67.80. Trading volume was 15 times its 20-day average.

Shares of the Faridabad-based farm equipment maker declined for the fifth straight session and fell as much as 4 percent to Rs 601.

Escorts transferred the existing RT Crane business to its joint venture with Japan-based Tadano for Rs 35 crore on a slump sale basis, according to its exchange notification.

  • April-November gross direct tax collection at Rs 6.75 lakh crore, up 15.7 percent (YoY)
  • Refunds amounting to Rs.1.23 lakh crore issued between April-November, up 20.8 percent (YoY)
  • Net direct tax collections represent 48 percent of total budgeted estimates of direct taxes for FY2018-19
  • April-November corporate income tax collections up 17.7 percent (YoY)
  • April-November personal income tax collections up 18.3 percent (YoY)
  • Source: Central Board of Direct Taxes

  • Axis Bank has 18.6 lakh shares change hands in a block deal. Stock down 1.27 percent at Rs 596.25.
  • Buyers and sellers were not immediately known

    Source: Bloomberg

Kotak Mahindra Bank Moves Court Against RBI Decision On Promoter Shareholding

November auto sales:

  • Passenger vehicles: 2.66 lakh vehicles, down 3.4% YoY
  • Trucks, buses: 72,812 units, up 5.7% YoY
  • Two-wheelers: 16.45 lakh units, up 7.1% YoY

Source: Society of Indian Automobile Manufacturers

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Shares of the Mumbai-based construction company snapped its three-day losing streak and rose as much as 6.69 percent to Rs 127.55 after it won a railway project from Rail Vikas Nigam Limited.

The company bagged a railway project worth Rs 794.20 crore from Rail Vikas Nigam Ltd. for construction of roadbed, bridges in Bihar and Jharkhand, Ashoka Buildcon said in an exchange notification.

What Dalal Street Is Saying About The Exit Polls

Rupee opened sharply lower at 71.31 per dollar against Friday's close of 70.81.

The local unit fell as much as 0.84 percent or 60 paise to 71.40 against the greenback.

Nomura on Exit Polls

  • Exit polls give BJP cold sweat; Set to lose Rajasthan; MP and Chhattisgarh remain nail biters.
  • Generally state election outcomes have been known to be a poor leading indicator of general elections.
  • BJP’s drubbing to mean that farm unrest is real; increase in MSP haven’t yielded political dividends.

Deutsche Bank Research on REC-PFC Deal

  • Limited benefits for combined entity; no material change for REC.
  • See negative impact on capital adequacy, credit rating and funding cost for PFC.
  • Buyout at premium will be negative for PFC shareholders.

Deutsche Bank Research on Consumer Durables

  • Next year's outlook positively guided; September quarter was impacted by high-base, excess inventory and weak season.
  • Positive outlook on domestic projects business with 2-5 year upcycle.
  • Election to have limited one-quarter impact on project business.
  • Voltbek raised capex to Rs 1000 crore to fund expansion in Tier II/III cities.

Morgan Stanley on Cement

  • Industry hiked prices in November, but channel checks show reversals in price trends in December
  • Prices flattish QoQ in North, Central and East and a marginal drop in West and South in September quarter.
  • Cost decline should support margins sequentially and on a yearly basis.

HSBC on Suzlon Energy

  • Maintained ‘Buy’; cut price target to Rs 9.5 from Rs 14.
  • Recovery post transition pain has been slower and shallower than expected.
  • Slower execution issues are being addressed; strong order book lends two years growth visibility.
  • Cut target price to factor in lower industry volumes.

Axis Capital on RBL Bank

  • Maintained ‘Buy’; hiked price target to Rs 660 from Rs 575.
  • Reiterate long-term outlook and belief in execution capability of the bank.
  • Bank is significantly investing in future and has capability to leapfrog into league of big banks.
  • Expect RBL to scale up materially on more share of high-yielding business, granular and diversified loan book, pan-India presence and room for operating leverage.

  • Nifty December futures closed trading at 10735, premium of 41 points
  • Max OI for December series at 11,000 Call, OI at 37.1 lakh shares.
  • Max OI for December series at 10,500 Put, OI at 35.4 lakh shares.

Insider Trades
  • Electrosteel Castings promoter acquired 80k shares from Nov. 30 to Dec. 05.
  • JM Financial promoter and director Vishal Kampani acquired 50,000 shares on Dec. 05.
  • Axis Bank promoter LIC sold 30.4 lakh shares from Dec. 04-06.
  • Lemon Tree Hotels promoter group Sparrow Buildwell acquired 31,200 shares from Dec. 05-06.

Who’s Meeting Whom
  • Shopper’s Stop to meet First State Stewart Asia, Axis Capital and other investors from Dec. 11-12.
  • PPAP Automotive to meet Ambit Capital on Dec. 10.
  • IIFL Holdings to meet Southern East Management on Dec. 10.
  • Globus Spirits to meet LIC Mutual Fund, ICICI Pru AMC and other investors on Dec. 10.
  • Shriram City Union Finance to meet TenCore Partners, Dolat Capital Makets and other investors from Dec. 10-13.

Stocks

  • Japan’s Topix index fell 1.7 percent as of 10:32 a.m. in Tokyo.
  • Australia’s S&P/ASX 200 Index lost 1.8 percent.
  • Hong Kong’s Hang Seng Index dropped 1 percent.
  • The Shanghai Composite Index fell 0.3 percent.
  • Futures on the S&P 500 Index were down 0.8 percent. The S&P 500 sank 2.3 percent Friday.
  • Futures on the Euro Stoxx 50 lost 1.1 percent.

Currencies

  • The yen gained 0.3 percent to 112.33 per dollar.
  • The offshore yuan slid 0.1 percent to 6.8935 per dollar.
  • The Bloomberg Dollar Spot Index fell 0.2 percent.
  • The euro bought $1.1431, up 0.5 percent.
  • The pound rose 0.2 percent to $1.2748.

Commodities

  • West Texas Intermediate crude held at $52.62 a barrel.
  • Gold was little changed at $1,249.82 an ounce after gaining 0.9 percent Friday.

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