Key barometers continued to trade near day's low in mid-afternoon trade. Sentiment was affected by media reports suggesting that Maharashtra CM Uddhav Thackeray ordered a review of all on-going development projects in the state, including the Mumbai-Ahmedabad bullet train.
At 14:36 IST, the barometer index, the S&P BSE Sensex, was down 190.53 points or 0.47% at 40,611.64. The Nifty 50 index was down 74.5 points or 0.62% at 11,973.75. The Nifty descended towards 11,950 level.
The S&P BSE Mid-Cap index was down 1.03% while the S&P BSE Small-Cap index was down 0.79%.
There were more sellers than buyers. On the BSE, 774 shares rose and 1587 shares fell. A total of 205 shares were unchanged. In Nifty 50 index, 10 stocks advanced while 40 stocks declined.
The initial public offer (IPO) of Ujjivan Small Finance Bank received bids for 39.44 crore shares today, 3 December 2019, as against 12.39 crore shares on offer, as per the National Stock Exchange of India (NSE) website data at 14:00 IST. The issue was subscribed 3.18 times. The issue opened for bidding today, 2 December 2019 and it will close on Wednesday, 4 December 2019. The price band has been fixed at Rs 36 to Rs 37 per share.
Politics:
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Maharashtra Chief Minister Uddhav Thackeray reportedly ordered a review of all projects/proposals cleared by Devendra Fadnavis's government in the last six months. Further, Thackeray's specific instruction to the bureaucrats is to not release any payment for the projects till the time the Maha Vikas Aghadi government clears them. Payments for only those projects that are 100% complete will be released.
Immediately after taking charge as chief minister, Thackeray announced that the metro car shed at Aarey Colony has been put on hold pending review.
Apart from the Bullet Train project, the other major projects under the scanner are the Mumbai-Nagpur Samruddhi Corridor, estimated to cost Rs 46,000 crore, the Coastal Road linking south Mumbai to the Western suburbs, likely to cost Rs 12,000 crore, the Rs 7,000-crore Versova-Bandra Sea Link, and the construction of the third bridge on the Thane Creek, which is expected to cost Rs 800 crore. There's also the on-going tunnelling for a six-km missing link of the Mumbai-Pune Expressway which is being reviewed, media reports added.
Meanwhile, The Thackeray-led government has reportedly ordered the cancellation of contract awarded to a Gujarat-based event management company for organising an international horse fair.
Buzzing Index:
The Nifty IT index was trading 0.41% higher at 14,912.50.
Mastek (up 6.86%), TCS (up 1.74%), Infosys (up 0.65%), MindTree (up 0.64%) and Tech Mahindra (up 0.1%) were top gainers in IT segment.
Stocks in Spotlight:
Shares of Caplin Point Laboratories were trading 1.5% lower at Rs 311.90. The pharma company received a USFDA approval for Sodium Nitroprusside Injection. Sodium nitroprusside is used for reduction of blood pressure of adult and pediatric patients in hypertensive crises. Sodium nitroprusside is also indicated for producing controlled hypotension in order to reduce bleeding during surgery and for the treatment of acute congestive heart failure.
Bank of Baroda was down 3.06%. Bank of Baroda said meeting of the Capital Raising Committee (CRC) of whole time Directors of the Bank is scheduled to be held on 5 December 2019 to consider raising of capital funds through issue of capital debt instruments.
KEI Industries was down 0.02%. KEI Industries said the meeting of the Board of Directors of the Company will be held on Thursday, 5 December 2019, to consider and approve, inter-alia, the Notice of Postal Ballot seeking approval of shareholders for raising of funds in one or more tranches, by issuance of equity shares by way of qualified institutions placement(s).
Numbers to Track:
The yield on 10-year benchmark federal paper fell to 6.48% at 14:19 IST compared with 6.484% in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 71.6125, compared with its close of 71.66 during the previous trading session.
In the commodities market, Brent crude for February 2020 settlement was up 20 cents at $61.12 a barrel. The contract rose 0.71% to settle at $60.92 a barrel during the previous trading session.
MCX Gold futures for 5 December 2019 settlement fell 0.1% to Rs 37,915.
Karvy Fiasco:
The Securities Appellate Tribunal (SAT) on Tuesday asked Karvy Stock Broking (Karvy) to approach National Stock Exchange of India's (NSE) disciplinary committee on revoking the trading suspension. NSE's disciplinary committee after hearing Karvy's representation will pass final order on whether the trading suspension stays or is revoked by 6 December 2019.
NSE had suspended Karvy's trading license across all segments of equity, cash, commodities and currency. The suspension order by NSE was followed by BSE and Multi commodity Exchange (MCX). Domestic exchanges suspended Karvy's trading licence after discovering that the firm violated exchange rules as well as those of the market regulator. Karvy was indulging in merging its own securities with client securities and used client securities for funding purposes, the exchanges found in their disciplinary proceedings.
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