Key equity barometers ended lower for second consecutive session on Tuesday, as investors locked in some of the recent gains in thin trading ahead of the Christmas holiday on Wednesday. Significant selling in the last hour of trade pushed the Nifty below 12,250 level.
An improving outlook on the global economy and optimism surrounding US-China trade deal had sent domestic equities to an all-time high last week.
The barometer index, the BSE Sensex, fell 181.40 points or 0.44% to 41,461.26, as per the provisional closing data. The Nifty 50 index lost 51.05 points or 0.42% to 12,211.70, as per the provisional closing data.
In the broader market, the S&P BSE Mid-Cap index fell 0.02% while the S&P BSE Small-Cap index rose 0.02%.
The market breadth was negative. On BSE, 1138 shares advanced while 1339 shares declined. A total of 176 shares were unchanged. In Nifty 50 index, 24 stocks advanced and 26 stocks declined.
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Domestic stock markets will remain closed on Wednesday, 25 December 2019, on account of Christmas.
Politics:
Bharatiya Janata Party (BJP)'s political troubles deepened with the party losing control of the mineral-rich eastern state of Jharkhand just months after losing the crucial state of Maharashtra.
The Jharkhand Mukti Morcha's (JMM) legislature party will reportedly elect its leader at a meeting in Ranchi on Tuesday. JMM fought the election in alliance with Congress and Lalu Prasad's Rashtriya Janta Dal (RJD) to win a comfortable majority with 47 seats.
Jharkhand Mukti Morcha's (JMM) won 30 seats, Congress 16 and RJD one seat in the election. BJP, which went solo, won 25 seats.
Legislative Assembly elections were held in Jharkhand from 30 November to 20 December 2019 to elect the 81 members of Legislative Assembly. The election results were declared on Monday.
Buzzing Index:
The Nifty Metal index rose 0.52% to 2,720.35, outperforming other sectoral indices on the NSE.
National Aluminium Company (up 4.13%), Jindal Steel & Power (up 2.03%), JSW Steel (up 1.25%), NMDC (up 0.73%), Vedanta (up 0.44%), Steel Authority of India (up 0.37%), Hindustan Zinc (up 0.21%) and Tata Steel (up 0.21%) advanced. Hindustan Copper was down 1.8%.
Stocks in Spotlight:
NIIT Technologies rose 1.17% to Rs 1596.35. The company said its board approved buy-back of up to 19,56,290 fully paid equity shares at a price of up to Rs 1,725 per share aggregating up to Rs 337 crore. The number of securities proposed to be bought back represents 3.1% of the existing paid up equity share capital of the company.
Hindalco Industries gained 0.67% to Rs 216.35. The aluminum and copper manufacturing company said its Muri refinery in Jharkhand restarted production of Alumina after receiving consent to operate from Jharkhand State Pollution Control. On 10 April 2019 the company had informed that operations of Alumina plant were suspended due to the spillage in the red mud cake storage area. Going forward, the company may not need to import Alumina.
GE T&T India rose 2.22% to Rs 147.50. GE T&T India said it has executed an agreement to sell its undertaking at Naini, Allahabad to Shirdi Sai Electricals. This will result in optimising the utilisation level of the transformer manufacturing factories in the company and consolidation of company's transformer manufacturing related operations in India.
Indian Railway Catering and Tourism Corporation (IRCTC) rose 3.07% to Rs 891.05 after the railway company revised tariff structure on standard meals on static units on Indian Railways. IRCTC has also signed a Memorandum of Understanding (MoU) with Hotel and Restaurant Association of Northern India (HRANI) on Monday, 23 December 2019 for listing the of HRANI member hotels and their room rate inventory for sales on IRCTC portal. The disclosure made after trading hours yesterday, 23 December 2019.
Lemon Tree Hotel rose 2.91% to Rs 63.55. The hotel chain company informed that it has signed a license agreement for a 55 room upcoming Hotel at Hill Cart Road in Darjeeling under the company's brand Lemon Tree Hotel. The hotel will add to the portfolio of hotels in West Bengal which include operating hotels in Kolkata and Siliguri. The Hotel shall be operated through its subsidiary and management arm, Carnation Hotels.
Sterling Tools (STL) hit an upper circuit limit of 20% at Rs 215 after the company entered into a joint venture (JV) agreement with China's Jiangsu Gtake Electric Company (GTAKE) to provide the Indian electric vehicle OEM's with best-in-class motor control units (MCUs). In the proposed joint venture company (JVC), STL will hold 51% stake while the remainder 44% stake will be held by GTAKE. The joint venture company would be a subsidiary of STL and will commence production by Q1 FY2021.
IFCI surged 7.96% to Rs 6.78 after the company said it sold its entire 2.44% stake in NSE. IFCI in an exchange filing during market hours said that it has divested its entire stake in National Stock Exchange (NSE), comprising of 1.20 crore equity shares, or 2.44% equity. The company said it has realized approximately Rs 805.60 crore, representing about 82% of the total committed amount. Process for receipt of approval for remaining quantity is underway, it added.
Solara Active Pharma Sciences rose 2.85% to Rs 451.45. The active pharmaceutical ingredient (API) manufacturer on 23 December 2019 said the Mumbai bench of NCLT on December 20 had pronounced an order sanctioning the scheme of merger between Strides Chemicals (SCPL), Solara Active Pharma Sciences and their respective shareholders. The appointed date for the merger is September 1, 2018, it added.
In September 2018, the company's board had approved the amalgamation of the company's wholly-owned subsidiary Strides Chemicals with the company by way of a scheme of amalgamation.
Foreign Markets:
Overseas, the Europen markets were trading mixed while the Asian stocks ended mixed on Tuesday ahead of the Christmas holiday on Wednesday.
In US, stocks recorded closing records on Monday as investors focused on a report that China will cut import tariffs for frozen pork, pharmaceuticals and some high-tech components starting 1 January 2020. The S&P and Nasdaq both hit new intraday highs Monday morning.
Investors cheered the news that China will cut import tariffs on a wide range of goods. China's finance ministry announced starting January 1, it will lower import tariffs on over 850 products ranging from frozen pork to some types of semiconductors. China is making efforts to boost imports amid a slowing economy and a trade war with the U.S.
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