The market ended with modest losses on Friday, tracking weakness in other Asian indices. Selling was broad based with pharmaceutical and metal stocks under pressure. The Nifty, however, managed to end above 11,500 mark.
The barometer index, the S&P BSE Sensex, fell 167.17 points or 0.43% to 38,822.57. The Nifty 50 index fell 58.80 points or 0.51% to 11,512.40.
The breadth was tilted in favour of sellers. On the BSE, 973 shares rose and 1549 shares fell. A total of 154 shares remain unchanged.
In the broader markets, the S&P BSE Small-Cap index fell 0.81%. The S&P BSE Mid-Cap index fell 0.62%.
The Nifty opened higher and hit the day's high of 11,593 level in morning trade. The index quickly reversed its trend and tumbled in mid-morning trade. It bounced back once again in the afternoon trade, but the gain proved to be short lived. The index once again reversed its trend and hit fresh intraday low in mid-afternoon trade. The index managed to hold 11,500 mark and end above that level.
Finance Minister Nirmala Sitharaman after meeting with private banks, microfinance institutions (MFIs) and non-banking finance companies (NBFCs) yesterday, 26 September 2019, asserted that the economy will revive in second half of the financial year as consumption takes off and banks raise their lending. FM said there are no complaints of liquidity shortage in the system and near unanimity that most microfinance institutions in rural India are seeing strong credit demand. Private sector banks will be setting up stalls in loan fairs next to their state-owned peers as they have voluntarily agreed to participate in the government's credit outreach program, FM said.
Meanwhile, the Indian Meteorological Department (IMD) stated in a latest update that for the country as a whole, cumulative rainfall during this year's southwest monsoon season upto 25th September, 2019 is above Long Period Average or LPA by 6%.
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In the foreign exchange market, the partially convertible rupee edged higher and was hovering at 70.585, compared with its close of 70.88 during the previous trading session.
In the commodities market, Brent crude for November 2019 settlement was down 92 cents at $61.82 a barrel. The contract rose 0.56% to settle at $62.74 a barrel in the previous trading session.
Overseas, European markets were trading higher while Asian markets declined on Friday as investors watch for developments on the US-China trade front. Trade negotiations between the U.S. and China are reportedly set to resume on 10 Oct in Washington, D.C.
China's industrial profits for August dropped 2% from a year earlier, according to the country's National Bureau of Statistics. That followed a 2.6% gain in July and a 3.1% in June.
US stocks slipped on Thursday as the release of a whistleblower report tied to the Democrats' impeachment move against President Donald Trump kept uncertainty high, while trade comments from China's top diplomat helped to limit losses.
China said on Thursday it is in close communication with the United States over trade talks, while a top diplomat said Beijing is willing to buy more US products.
Back home, index pivotals, Reliance Industries (RIL) (up 0.94%) and HDFC Bank (up 0.14%) bucked weak market trend.
FMCG major Nestle India (down 1.70%) replaced Indiabulls Housing Finance (down 6.11%) in the Nifty 50 index today.
Bajaj Finance rose 1.61% to Rs 4065.35. It hit a record high of Rs 4084.45 in intraday today.
Yes Bank fell 4.41% at Rs 48.80. The bank informed that its step-down, Yes Capital (India) (YCPL) has sold 1.82% stake to pay off the outstanding debt balance of the bank. The proceeds of the sale is going to be utilized to prepay the entire outstanding debt balance of non-convertible debentures (NCDs) held in YCPL, subscribed by various schemes of Franklin Templeton Asset Management (India) (FT). The announcement was made after trading hours yesterday, 26 September 2019. On September 2017, YCPL placed rated, zero coupon NCDs worth Rs 630 crore with FT. These funds were utilized by YCPL towards growth capital for new-age start-up ventures. On 26 September 2019, Yes Capital (India) sold 4.56 crore equity shares for Rs 51.94 per share.
Lakshmi Vilas Bank (LVB) was locked in a lower circuit of 5% at Rs 36.55 after the Economic Offences Wing of the Delhi Police registered a case against the bank alleging misappropriation of Religare Finvest's fixed deposits held in the bank.
Auto major Tata Motors fell 3.69% to Rs 119.90 after Jaguar Land Rover's CEO Ralf Speth told the media that JLR plans to close its U.K. factories for a week in November to guard against disruption to supply chains from a possible no-deal Brexit. Anticipation of Brexit has compounded the problems facing UK carmakers. Sudden delays at the border would damage the vital supply chains across the English Channel.
ITC gained 1.02% to Rs 252.90 fter a global brokerage reportedly maintained an overweight call on the stock and raise target price to Rs 370 from Rs 360 per share. According to reports, the brokerage cited that ITC is one of the biggest beneficiaries of corporate tax cut, adding that increased pricing flexibility would strengthen long-term growth. However, it does not expect ITC to raise prices in the cigarette portfolio in FY2020.
Maruti Suzuki India fell 1.27%. The company announced a price reduction of select models by Rs 5,000 on 25 September 2019. The company has reduced the ex-showroom price of 'Baleno RS' by Rs 100,000.
Solara Active Pharma Sciences fell 4.71% after the company received request for information from USFDA and EDQM regarding N-nitrosodimethylamine (NDMA) content in Ranitidine Hydrochloride drug substance. The company stated that it has temporarily suspended production and distribution of Ranitidine Hydrochloride drug substance.
Strides Pharma Science slumped 7.43% after the company suspended sales of ranitidine tablets in the US market until such time it has clarity of next steps as would be indicated by the USFDA. On 25 September 2019, Strides Pharma received an information request from the US drug regulator to provide test data related to NDMA impurities in ranitidine tablets.
ICICI Lombard General Insurance Company advanced 1% to end at Rs 1205.40. The counter witnessed multiple bulk deals on Thursday. FAL Corporation, a wholly-owned subsidiary of Canadian investor Prem Watsa's Fairfax Financial Holdings, sold 2.26 crore shares or 4.99% stake in the company at an average price of Rs 1129.68 per share. As on 30 June 2019, Fal Corporation held 9.90% stake in ICICI Lombard.
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