The benchmark indices ended with decent gains after a volatile session on Tuesday. Media updates on the PSU disinvestment front led to heavy buying momentum in the last hour of trade. Telecom shares shot up on proposals to raise tariffs from December. Index heavyweight Reliance Industries hit a record high level.
The barometer index, the BSE Sensex, rose 185.51 points or 0.46% to 40,469.70, as per the provisional closing data. The Nifty 50 index rose 72.65 points or 0.61% to 11,957.15, as per the provisional closing data.
In the broader market, the S&P BSE Mid-Cap index fell 0.05% while the S&P BSE Small-Cap index rose 0.31%.
The market breadth was negative. On the BSE, 1151 shares rose and 1387 shares fell. A total of 194 shares were unchanged.
Media reports suggested that the proposal to lower government stake in the PSUs below 51% may come up in the next cabinet meeting. The group of ministers (GoM) on divestment are likely to approve a list of PSUs where the government's stake will go below 51%.
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The Nifty Auto fell 0.68% to 8,063.95, extending decline for third straight session. The index has fallen 1.54% to 8,073.95 from a recent closing high of 8,190.90 on 14 November 2019.
Mahindra & Mahindra (down 2.12%), Hero MotoCorp (down 1.4%), Tata Motors (down 1.35%), Maruti Suzuki India (down 0.9%), TVS Motor Company (down 0.77%), Ashok Leyland (down 0.43%) and Bajaj Auto (down 0.03%) declined.
Eicher Motors (up 1.17%) and Escorts (up 0.24%) advanced.
The Federation of Automobile Dealers Associations (FADA) reported that vehicle registrations in October showed a positive momentum due to festivals. Attractive offers boosted the overall positive mood of the buyer.
Vehicles registrations rose by 4% to 17,09,610 units in October 2019 as against 16,38,832 units in October 2018. 2-wheeler registration was up by 5% while 3-wheeler registration was up by 4% on YoY basis.
Commercial Vehicle segment continued to witness a slow down as registration in October 2019 de-grew by 23% to 67,060 units on YoY basis.
FADA continues its recommendation to its members to tread with caution, especially with regards to inventory and costs during this dynamic time of fluctuating consumer sentiment due to overall weak economic situation and BS6 transition. FADA will also continue to engage with all the stakeholders for a smooth transition into the BS6 Regime for its members.
The FADA data offers a reaffirmation of the view stated early in November by SIAM. The Society of Indian Automobile Manufacturers (SIAM), commenting on auto sector's performance in October 2019, said that festive season did manage to bring some cheer in passenger vehicles segment. However, the remaining auto segments continued to prevail in the negative territory.
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Telecom major Bharti Airtel advanced 6.83% to Rs 437.10. The scrip has hit 52-week high of Rs 435 in intraday today.
In an exchange filing, Airtel said that it will appropriately increase price offerings in the month beginning December. While continuing to provide affordable tariffs to customers, it would balance the needs of the company to remain viable and thereby continue to invest in the much needed digital infrastructure and maintain the quality standards required by its customers.
Vodafone Idea spurted 30.87% to Rs 5.85. Vodafone Idea reiterated its commitment to play its due role in realising the vision of Digital India by continuing to provide seamless mobile services to customers across India. To ensure that its customers continue to enjoy world class digital experiences, Vodafone Idea will suitably increase the prices of its tariffs effective 1 December 2019.
Index pivotal Reliance Industries (RIL) rose 3.34% at Rs 1507.20. It hit a record high of Rs 1,511.90 in intraday today.
Tata Steel fell 1.90% to Rs 402.40. Tata Steel outlined proposals for a transformation programme in Europe. The programme is needed to ensure the business can thrive despite severe market headwinds which have led to a sharp decline in profitability. At the same time, it aims to secure the foundation for investments required to accelerate innovation and the company's journey towards carbon-neutral steelmaking.
TCS declined 1.94% to Rs 2110. TCS announced the setting up of a new Microsoft Business Unit (MBU). Offering a full complement of services and solutions around Microsoft technologies, and catering to all stakeholders in the enterprise, the new unit will work with customers worldwide to accelerate their Business 4.0 transformation journeys.
TCS in a seperate exchange filing said that it has expanded its partnership with Virgin Atlantic for creating and innovating new customer experience. The partnership will help Virgin Atlantic in identifying the next digital innovation, including real-time analysis of data, automated re-fuelling and various proofs of concepts in areas such as voice-enabled bookings.
Accelya Solutions India surged 12.69% to Rs 1205 after the company announced that it is being acquired by Vista Equity Partners (Vista), a leading investment firm focused on enterprise software, data and technology-enabled businesses.
Zee Entertainment Enterprises slipped 2.67% to Rs 286.20 after Brickwork Ratings downgraded rating on company's 6% Cumulative Redeemable Non-Convertible Preference Shares. Brickwork Ratings revised ratings from BWR AAA to BWR AA+ with negative implications.
Siemens rose 1.48% to 1576.25, ahead of its Q4 earnings today.
Foreign Markets:
Overseas, European stocks continued to trade higher while Asian stocks ended mixed on Tuesday as investors awaited clarity on the progress of trade negotiations between the two major economies.
US stocks eked out fresh all-time highs on Monday, notching slight gains as progress toward a so-called phase-one U.S.-China trade agreement remained elusive.
The Trump administration on Monday issued a 90-day extension of a license allowing U.S. companies to continue doing business with Chinese telecom giant Huawei Technologies Co.
Chinese Vice Premier Liu He, the country's top trade negotiator, reportedly held a phone conversation with U.S. Trade Rep. Robert Lighthizer and Treasury Secretary Steven Mnuchin on Saturday, describing the discussions as constructive.
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