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07
December 2018
I had
mentioned in last week’s closing report that Nifty, Sensex were going strong on
positive news all round. The major indices of the Indian stock markets suffered
a correction during the week and closed on Friday with losses over last
Friday’s close. The trends of the major indices in the course of the week’s
trading are given in the table below:
The
major indices of the Indian stock markets were range-bound on Monday and closed
with marginal gains over Friday’s close. On the NSE, there were 925 advances,
811 declines and 342 unchanged.
On
Monday, the markets opened on a positive note in line with global markets on
signs of easing US-China trade tension who agreed to halt additional tariffs in
the G20 meeting in Buenos Aires. Reversing early gains, the key equity indices
traded in the red during the afternoon trade session on Monday as investors reacted
to disappointing macro-economic data and a rise in global crude oil prices.
While the financials traded on a flat note, realty, power and utility stocks
gained over 2%. In contrast, the healthcare and auto stocks witnessed selling
pressure. Besides, ahead of the OPEC meeting this week, the crude oil prices
surged on expectations of supply cuts by the oil cartel. The benchmark Brent
Crude traded higher at $62.07 a barrel. Even the domestic currency weakened 63
paise against the US dollar, trading at Rs70.22 from its previous close of
69.59. However, the major indices moved up before the end of the trading
session on Monday and closed with marginal gains over Friday’s close.
India's
factory output in November rose to an 11 month high on the back of improved
demand, according to the Nikkei India Manufacturing PMI. The Nikkei India
Manufacturing Purchasing Managers' Index (PMI) was recorded at 54 in November,
up from 53.1 in October.
Commercial
vehicles major Ashok Leyland Ltd on Monday said its sales went down by 9% last
month. In a statement issued here, the company said it sold a total of 13,121
units in November 2018, down from 14,457 sold during November 2017.
Two
and three wheeler maker TVS Motor Company Ltd on Monday said it logged 27%
sales growth last month. In a statement, the company said it sold 319,965 units
in November 2018, up from 251,965 in November 2017. The company sold 307,142
two-wheelers and 12,823 three-wheelers last month as against 243,323
two-wheelers and 8,642 three-wheelers during November 2017.
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.
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.
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.
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
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.
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.
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%.
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.
The
indices suffered a correction on Thursday and closed with losses over
Wednesday’s close.
But
on on Friday they rallied thanks to strong global cues and closed with gains
over Thursday’s close. On the NSE, there were 732 advances, 969 declines and
363 unchanged.
The
market was supported by a decline in crude oil prices and an appreciating
rupee. Buying in banking, auto and consumer goods stocks also supported the
domestic equity market, analysts said.
Global
ratings agency Fitch Ratings lowered India's growth forecasts to 7.2% from an
earlier projection of 7.8% rise for fiscal year ending March 2019.
Indian
software major HCL Technologies on Friday said it was buying IBM Software
Products for $1.8 billion (Rs12,700 crore) in an all-cash deal. "The
transaction is expected to close by mid-2019, subject to completion of
applicable regulatory reviews," said the Noida-based company in a
mandatory filing on the BSE. HCL Technologies shares closed at Rs961.90, down
5.00% on the NSE.
The
Cabinet Committee on Economic Affairs (CCEA) accorded in-principle approval for
the strategic sale of the governments existing 52.63 % majority shareholding in
the Rural Electrification Corporation (REC) to the state-run Power Finance
Corporation (PFC), along with transfer of management control. REC shares closed
at Rs104.70, up 0.82% on the NSE and PFC shares closed at Rs89.50, down 0.61%
on the NSE.
US
trade deficit widened for a fifth consecutive month and reached a 10-year high
in October, according to data from the Commerce Department. US stocks closed
mixed as fears for economic slowdown continued. The US dollar extended losses
in late trading on Thursday, as a batch of negative economic data cast a poll
over investors’ sentiment.The Total
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Weekly Indices (The Total
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