The benchmark indices continued trading with modest gains in afternoon trade. At 13:23 IST, the barometer index, the S&P BSE Sensex, was up 71.59 points or 0.18% at 40,960.82. The Nifty 50 index was up 12.70 points or 0.08% at 12,083.95.
In the broader market, the S&P BSE Mid-Cap index was up 0.04%. The S&P BSE Small-Cap index was up 0.24%.
The market breadth was positive. On the BSE, 1136 shares rose and 1160 shares fell. A total of 171 shares were unchanged. In Nifty 50 index, 28 stocks advanced and 22 stocks declined.
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.
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.
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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 Auto index was up 0.39% to 8,206.75, extending gains for third session. The index has risen 2.52% to 8,206.75 from a recent closing low of 8,004.65 on 21 November 2019.
Among the sector components, Escorts (up 1.53%), TVS Motor Company (up 0.86%), Hero MotoCorp (up 0.83%), Tata Motors (up 0.36%) and Bajaj Auto (up 0.21%) advanced.
Eicher Motors (down 0.42%), Mahindra & Mahindra (down 0.14%) and Maruti Suzuki India (down 0.06%) declined.
Stocks in Spotlight:
Reliance Industries (RIL) rose 0.49% to Rs 1568.35. The stock hit fresh record high of Rs 1576 in intraday today, as the company inched further towards Rs 10 lakh crore in market capitalization.
Zee Entertainment Enterprises slumped 6.20% to Rs 322.35. The board of Zee Entertainment Enterprises completed the process of reconstitution of the board and appointed three new independent directors in lieu of two independent and one nominee Director of Essel Group, namely Niharika Vora, Sunil Sharma and Subodh Kumar, respectively. The founder of ZEE, Subhash Chandra, expressed his intent to step aside as the Chairman of the company. The board accepted his resignation with regret and applauded his vision for the company and the industry at large.
Ashok Leyland slipped 0.78% to Rs 82.65. The company signed a memorandum of understanding (MoU) with lClCl Bank to enter into a strategic financing partnership for two years. This MoU will enable both Ashok Leyland and ICICI Bank to offer customised financial solution to customers across India with focus on semi-urban and rural geographies.
UPL was trading 0.92% higher at Rs 549.40. Moody's Investors Service has changed the outlook on UPL Corporation's ratings to stable from positive.
"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.
Foreign Markets:
Overseas, European markets opened higher while stocks in Asia were trading mixed on Tuesday afternoon following record finishes overnight on Wall Street.
On the US-China trade front, leading negotiators from Washington and Beijing held another phone call on Tuesday morning to discuss 'core issues,' China's Ministry of Commerce said in an online statement.
Liu He, China's top negotiator on trade, spoke with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, the statement said.
Markets have been watching for developments and details surrounding an anticipated 'phase one' trade deal that has so far remained elusive ahead of December 15, when additional tariffs on Chinese exports to the U.S. are set to go into effect.
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