Domestic indices ended with small losses on Thursday as investors locked profit after recent steep gains. The Nifty managed to close above 13,450 level after breaching that level in intraday trade. FMCG shares advanced on defensive buying.
The S&P BSE Sensex, lost 143.62 points or 0.31% at 45,959.88. The Nifty 50 index lost 50.80 points or 0.38% at 13,478.30.
HDFC Bank (down 1.42%), ICICI Bank (down 0.85%) and Reliance Industries (down 0.96%) put pressure on the indices.
The Sensex rose 3.33% in the past five consecutive sessions while the Nifty climbed 4.32% in seven straight days till 9 December 2020.
In the broader market, the BSE Mid-Cap index fell 0.57% and the BSE Small-Cap index slipped 0.65%.
The market breadth was negative. On the BSE, 1241 shares rose and 1665 shares fell. A total of 165 shares were unchanged.
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COVID-19:
The expert committee of the Central Drugs Standard Control Organisation (CDSCO) on Wednesday sought additional safety and efficacy data from the Serum Institute of India and Bharat Biotech for their coronavirus disease (COVID-19) vaccine, after deliberating upon their applications seeking authorisation for the shots.
Total COVID-19 confirmed cases worldwide stood at 6,89,00,483 with 15,69,454 deaths. India reported 3,72,293 active cases of COVID-19 infection and 1,41,772 deaths while 92,53,306 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Currency & Crude:
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 73.6650, compared with its close of 73.57 during the previous trading session.
In the commodities market, Brent crude for February 2021 settlement rose 53 cents at $49.39 a barrel. The contract rose 2 cents, or 0.04% to settle at $48.86 a barrel in the previous trading session.
Foreign Markets:
European shares were trading higher as U.K. and European lawmakers vowed to decide on a potential post-Brexit trade agreement by the weekend, following an in-person meeting between British Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen on Wednesday evening.
Talks remain at an impasse over several key issues, including fishing rights and competition rules. Downing Street said very large gaps remain, while Von der Leyen described the two sides as "far apart." EU leaders are gathering in Brussels on Thursday for a two-day EU Council meeting.
Markets will also monitor the European Central Bank's latest monetary policy decision and macroeconomic projections on Thursday. The central bank is expected to expand its massive stimulus program as the continent deals with a second wave of the coronavirus pandemic.
Most Asian markets declined on Thursday as investors kept an eye on Brexit trade talks as well as ongoing negotiations in the U.S. for a coronavirus relief package.
In US, stocks fell on Wednesday, retreating from the record highs set earlier in the day, as tech shares struggled and traders weighed the prospects of new fiscal stimulus. All three averages also touched fresh intraday records.
Buzzing Indian Segment:
The Nifty FMCG index rose 2.81% to 34,054.80. The index rose 3.67% in two consecutive sessions.
Nestle India (up 4.17%), Procter & Gamble Hygiene & Health Care (up 4.10%), Godrej Consumer Products (up 3.57%), Britannia Industries (up 3.07%), Tata Consumer Products (up 2.74%), Hindustan Unilever (up 2.61%), Dabur India (up 2.43%), Marico (up 1.48%), Colgate Palmolive (India) (up 1.18%) and Jyothy Laboratories (up 0.88%) advanced.
Stocks in Spotlight:
Maruti Suzuki India rose 0.34%. The car major announced price hike for different models due to increase in various input costs. This price increase shall vary for different models and will be applicable from January 2021.
IRCTC slumped 10.27% to Rs 1451.95 as the offer for sale (OFS) opened for non-retail investors today. Through the OFS, the company's promoter Government of India proposes to sell over 2.40 crore shares, constituting 15% paid-up share capital of the company, with an option to sell an additional 5% stake or 80 lakh equity shares (oversubscription option). The Government of India held 87.4% stake or 13,98,40,000 shares of IRCTC as of 30 September 2020.
As on 15:30 IST, the OFS received subscription for 4,27,68,445 shares or 198% against the base non-retail offer size of 2.16 crore shares.
Federal-Mogul Goetze (India) lost 5% to Rs 331.40 after the offer for sale (OFS) opened for non-retail investors today. Through the OFS, the company's promoter IEH FMGI Holdings LLC proposes to sell 1,15,43,531 shares, constituting 20.75% paid-up share capital of the company. The promoter needs to bring down his stake to 75% by January 2021. As per the latest shareholding pattern, the promoter holds 96.82% stake in the company.
As on 15:30 IST, the OFS received subscription for 17,681 shares or 0.17% against the base non-retail offer size of 1,03,89,177 shares.
UPL tumbled 10.94% to settle at Rs 438.45 after a whistleblower reportedly alleged that the promoters of UPL had siphoned off money. According to the media report, the whistleblower alleged that UPL entered into rent deals with the shell company owned by its employees and paid crores of rupees in rent for properties held by the latter, which was earlier owned by UPL chief Jaidev Shroff himself. The whistleblower also claimed that shell entities were used to carry out other illegal transactions, the report added.
UPL, in a clarification issued during trading hours today, 10 December 2020, rubbished media reports and said it will evaluate all possible legal options available with it to defend its position and image.
Mahindra & Mahindra (M&M) declined 2.50% after the company said that the operations in the automotive sector will be affected by the global supply shortage of micro-processors (semiconductors). M&M clarified this will in reduction in production / sales volume of the company (automotive division) and Mahindra Vehicle Manufacturers, a wholly owned subsidiary of the company (MVML) in the last quarter of FY 2020-2021.
Snowman Logistics rose 5.43% while SpiceJet jumped 6.24%. Snowman on Thursday said it signed a Memorandum of Understanding (MoU) with Spicejet for jointly distributing COVID-19 vaccines across India and internationally. Snowman will handle the ground services such as transportation to/from manufacturers, warehouses, airports and consumption points, packing, storage & warehousing, in the required temperature zones, while SpiceJet will provide the air connectivity for temperature-controlled distribution of the COVID-19 vaccines across India as well as internationally.
Subex rose 2.16% after the company was selected by stc to deploy an integrated Revenue Assurance and Fraud Management (iRAFM) solution. Saudi Telecom Company (stc) is a Saudi Arabia-based digital company that offers telecommunications services, landline, mobile, Internet services, digital enterprise solutions, entertainment, fintech, and computer networks.
L&T Technology Services (LTTS) rose 0.42% after a global oil & gas (O&G) major selected the company to be the primary engineering partner to support two of the integrated refining and chemicals manufacturing facilities in USA. Under a 5-year engagement, LTTS will provide engineering services at two integrated refining and chemicals manufacturing facilities in USA. This is a multi-year engagement with a potential value of more than $100 million.
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