Indices traded near the flat line as uncertainty over the outcome of the Maharashtra assembly elections and India's Q2 GDP numbers weighed on investor's sentiment. Metal stocks witnessed profit booking after surging in last two trading sessions. At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 56.84 points or 0.14% at 40,946.07. The Nifty 50 index was up 8.05 points or 0.07% at 12,081.80.
In the broader market, the S&P BSE Mid-Cap index was up 0.1%. The S&P BSE Small-Cap index was up 0.17%.
The market breadth was positive. On the BSE, 1070 shares rose and 937 shares fell. A total of 130 shares were unchanged. In Nifty 50 index, 28 stocks advanced and 22 stocks declined.
India's GDP data for September quarter is scheduled to be published on 29 November 2019.
Politics:
The Supreme Court (SC) on Tuesday ordered a floor test on Wednesday, 27 November 2019, to determine the strength of the BJP-led Maharashtra government, which an opposition alliance says does not command majority support. The swearing in of members needs to be completed by 5 pm. The proceedings shall be live telecast. Pro-tem Speaker should be appointed to conduct floor test. It will be open ballot.
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All parties will now need to make submissions within eight weeks, as issues regarding the judicial review of the governor's decision (to swear in a BJP-led government) remain.
Shiv Sena's lawyer Kapil Sibal raised plea on restraining Fadnavis from taking policy decisions till after floor test but SC bench shrugged it off.
BJP leader Devendra Fadnavis was sworn in on Saturday (23 November 2019) morning as the chief minister of Maharashtra for the second consecutive term. Ajit Pawar, a member of the NCP, took oath as deputy chief minister of the state. Ajit Pawar is the nephew of NCP president Sharad Pawar.
The tussle over government formation in Maharashtra reached SC after the Shiv Sena-Nationalist Congress Party (NCP)-Congress combine challenged the BJP for forming a government in Maharashtra.
The three parties argued that BJP leader Devendra Fadnavis doesn't have the numbers to be chief minister, taking their fight separately to Parliament. BJP and the central government lawyers said Fadnavis will prove his majority, but the court didn't have the power to direct Maharashtra's governor to fix a deadline for a floor test in the Assembly.
Buzzing Index:
The Nifty Metal index witnessed profit booking after surging 5.32% in last two sessions. The index was down 0.58% at 2,586.80.
JSW Steel (down 1.85%), Steel Authority of India (down 1.26%), NMDC (down 1.26%), Vedanta (down 0.92%), Hindustan Copper (down 0.83%), Jindal Steel & Power (down 0.81%), Hindustan Zinc (down 0.63%) and Hindalco Industries (down 0.15%) were top losers in metal segment.
Stocks in Spotlight:
UPL was trading 0.36% higher at Rs 546.35. Moody's Investors Service has changed the outlook on UPL Corporation's ("UPL Corp") ratings to stable from positive. At the same time, Moody's has affirmed the company's Baa3 long-term issuer rating and the Baa3 rating on the company's senior unsecured notes maturing in 2021. The change in outlook to stable from positive reflects the weaker than expected operating performance of the broader UPL Group, and our expectation that it will take longer for its credit metrics to improve to a level appropriate for a higher rating," says Kaustubh Chaubal, a Moody's Vice President and Senior Credit Officer.
Tejas Networks jumped 9.15% to Rs 103.75 after the company signed a Memorandum of Understanding (MoU) with Bharat Electronics (BEL). The MoU envisages strategic cooperation, covering the use of Tejas' optical transmission, access and data-switching products. The company also received purchase orders of Rs 60 crores from BEL, towards supply and services of its optical and data networking equipment for various projects.
Glenmark Pharmaceuticals announced that it has received a final approval by the USFDA for Metformin Hydrochloride Extended‐Release Tablets. Metformin Hydrochloride Tablets are used to control high blood sugar. It is generally used in patients with type 2 diabetes. Shares of Glenmark Pharmaceuticals were trading 2.39% lower at Rs 341.25.
Foreign Markets:
Asian shares are trading slightly higher on growing hopes that the world's top two economies will reach an agreement soon.
Major U.S. stock-market benchmarks ended Monday's session at records as investors remained attuned to developments in the U.S.-China trade relationship and cheered a wave of merger activity. All three benchmarks also set new intraday highs on Monday.
On the economic front, the Chicago Fed's national activity index for October fell to a reading of negative 0.71, from negative 0.45 in the previous month. The Dallas Fed manufacturing index rose to a negative 1.3 in November from negative 5.1 in October.
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