Market settles with modest losses

Key benchmark indices registered modest losses in volatile session of trade on the first trading day of December led by losses in metal, banking and realty stocks. The barometer index, the S&P BSE Sensex, shed 92.89 points or 0.35% to settle at 26,559.92. The Nifty 50 index dropped 31.60 points or 0.38% to settle at 8,192.90. After moving in a small range near the flat line for most part of the session, key indices lost ground in late trade tracking weakness in European stocks. Earlier in intraday trade, both the Sensex and the Nifty had hit their highest levels in over two weeks. Key indices snapped four-day rising trend today, 1 December 2016.

 

The Sensex shed 92.89 points or 0.35% to settle at 26,559.92, its lowest closing level since 29 November 2016. The index lost 111.99 points or 0.42% at the day's low of 26,540.82. The index rose 116.51 points or 0.44% at the day's high of 26,769.32, its highest level since 15 November 2016.

The Nifty dropped 31.60 points or 0.38% to settle at 8,192.90, its lowest closing level since 29 November 2016. The index lost 39.45 points or 0.48% at the day's low of 8,185.05. The index rose 26.30 points or 0.32% at the day's high of 8,250.80, its highest level since 15 November 2016.

The breadth indicating the overall health of the market was negative. On BSE, 1,562 shares fell and 1,118 shares rose. A total of 136 shares were unchanged. The BSE Mid-Cap index declined 1.15%. The BSE Small-Cap index dropped 0.64%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The total turnover on BSE amounted to Rs 2768.96 crore, higher than the turnover of Rs 2590.67 crore registered during the previous trading session.

Among sectoral indices, the S&P BSE Auto index (down 0.88%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.54%), the S&P BSE Basic Materials index (down 1.29%), the S&P BSE Finance index (down 0.83%), the S&P BSE Industrials index (down 0.82%), the S&P BSE Consumer Durables index (down 0.47%), the S&P BSE Bankex (down 1.16%), the S&P BSE Power index (down 1.57%), the S&P BSE Telecom index (down 1.02%), the S&P BSE Energy index (down 0.53%), the S&P BSE Teck index (down 0.36%), the S&P BSE Metal index (down 1.69%), the S&P BSE Oil & Gas index (down 0.69%), the S&P BSE Utilities index (down 1.34%), and the S&P BSE Realty index (down 1.11%) underperformed the Sensex.

The S&P BSE Capital Goods index (up 0.04%), the S&P BSE FMCG index (up 0.18%), the S&P BSE IT index (down 0.23%) and the S&P BSE Healthcare index (up 0.34%) outperformed the Sensex

Mahindra & Mahindra (M&M) lost 2.02% after the company reported weak tractor and auto sales in November 2016 during market hours today, 1 December 2016. M&M's total auto sales declined 22% to 32,499 units in November 2016 over November 2015. Total domestic sales fell 24% to 29,814 units in November 2016 over November 2015. Total exports rose 22% to 2,685 units in November 2016 over November 2015.

The company's total tractor sales fell 21% to 17,262 units in November 2016 over November 2015. Domestic sales declined 24% to 15,918 units in November 2016 over November 2015. Exports surged 50% to 1,344 units in November 2016 over November 2015.

Realty stocks declined. DLF (down 2.04%), Indiabulls Real Estate (down 2.21%), Prestige Estates Projects (down 1.14%), Hubtown (down 1.64%), Housing Development and Infrastructure (down 1.37%), Unitech (down 1.39%), Sobha (down 2.65%), and Parsvnath Developers (down 2.07%) fell. D B Realty (up 0.12%), Godrej Properties (up 0.18%) and Oberoi Realty (up 1.13%) rose.

Bank stocks dropped. Among public sector bank stocks, State Bank of India (SBI) (down 1.03%), Canara Bank (down 1.13%), Union Bank of India (down 2.9%), Bank of India (down 2.09%), Punjab National Bank (down 1.37%) Syndicate Bank (down 1.12%), Indian Overseas Bank (down 1.19%), Bank of Baroda (down 1.61%), Andhra Bank (down 0.87%), Oriental Bank of Commerce (down 1.5%), Dena Bank (down 0.86%), and Indian Bank (down 2.42%) declined.

Among private sector banks, Axis Bank (down 0.82%), ICICI Bank (down 2.13%), Kotak Mahindra Bank (down 1.56%), IndusInd Bank (down 0.97%), Yes Bank (down 0.98%), and HDFC Bank (down 0.3%) declined.

Metal and mining stocks also declined. Bhushan Steel (down 2.67%), Jindal Steel & Power (down 3.4%), Vedanta (down 1.24%), Tata Steel (down 1.27%), NMDC (down 3.52%), Hindalco Industries (down 2.56%), Steel Authority of India (down 0.98%), JSW Steel (down 2.93%), Hindustan Zinc (down 2.62%) and National Aluminium Company (down 1.67%) edged lower. Hindustan Copper rose 2.98%.

Index heavyweight Reliance Industries (RIL) rose 0.45% after Reliance Jio Infocomm (Jio) announced that it has crossed 5 crore subscribers in just 83 days from commencement of services on 5 September 2016. The average rate of addition of 6 lakh subscribers per day is the fastest achieved by any technology company in the world including the likes of Facebook, WhatsApp and Skype.

On this occasion, Jio also announced the launch of 'Jio Happy New Year Offer (JNO)', which will be effective from 4 December 2016. All the Jio subscribers will be entitled to certain special benefits under the JNO, which shall comprise of Jio's Data, Voice, Video and the full bouquet of Jio applications and content, absolutely free, up to 31 March 2017. During this offer period, Jio and Jio customers, will be able to continue the journey of co-creating and building the best network experience together.

The benefits will be available to all subscribers signing up for Jio services up to 3 March 2017. The existing Jio Welcome Offer (JWO) users will continue to enjoy the unlimited benefits under JWO up to 31 December 2016, following which they would be automatically signed-up for the JNO as well. The announcement was made at the fag end of market hours today, 1 December 2016. Reliance Jio Infocomm, doing business as Jio, is a LTE mobile network operator in India. It is a wholly owned subsidiary of RIL.

Wipro gained 0.55% after the company announced that it has signed an agreement for divestment of its EcoEnergy division viz. Wipro EcoEnergy on slump sale basis, for a consideration of $70 million. The buyer is Chubb Alba Control Systems (Chubb Alba), an indirect subsidiary of United Technologies Corporation (UTC). The sale is expected to be closed in early 2017, subject to requisite approvals. The announcement was made after market hours yesterday, 30 November 2016.

Separately, the company said that it has been awarded a three-year IT infrastructure services and digital transformation contract by Woodside, an Australian oil and gas company. The announcement was made after market hours today, 1 December 2016.

Meanwhile, key indices snapped four-day winning streak today, 1 December 2016. The Sensex had gained 792.64 points or 3.06% in four sessions to settle at 26,652.81 on 30 November 2016, from a close of 25,860.17 on 24 November 2016. The Sensex had fallen 1,277.40 points or 4.57% in November 2016. The Sensex has risen 442.38 points or 1.69% in calendar year 2016 so far (till 1 December 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,065.31 points or 18.07%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 2,517.36 points or 8.65%. The Sensex is off 3,464.82 points or 11.53% from a record high of 30,024.74 hit on 4 March 2015.

Among macro economic data, the headline seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index stood at 52.3 in November, down from October's 22-month high of 54.4, data released by Markit Economics revealed today, 1 December 2016. The withdrawal of high-value banknotes in India reportedly hampered manufacturing growth in November, with companies signalling softer increases in order books, buying levels and output, Markit Economics said.

The gross domestic product (GDP) rose 7.3% in the second quarter ended September 2016. GDP expanded by 7.1% in the first quarter ended June 2016 and at 7.6% in the second quarter ended September 2015, data released after market hours yesterday, 30 November 2016 from the Central Statistics Office showed.

The output of eight core infrastructure sector comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) has posted healthy 6.6% growth in October 2016 over October 2015. Its cumulative growth during April to October 2016-17 was 4.9%, data released after market hours yesterday, 30 November 2016 showed.

Overseas, stocks in Europe edged lower, shrugging off the bounce in Asian shares. Asian stock markets rose as investor sentiment was boosted by news that the Organization of Petroleum Exporting Countries (OPEC) reached a deal yesterday, 30 November 2016 to cut oil production. The agreement marks the first time since 2008 that OPEC has agreed to curtail production and comes as a supply glut has weighed on prices.

In mainland China, the Shanghai Composite index rose 0.72%. China's manufacturing sector continued to expand at faster rate in November. The National Bureau of Statistics today, 1 December 2016 said that China's manufacturing PMI score was 51.7 in November, up from 51.2 in October. The Caixin China manufacturing purchasing managers' index, a private gauge of nationwide factory activity, fell to 50.9 in November from 51.2 in October but stayed out of contractionary territory for a fifth straight month, Caixin Media Co. and research firm Markit said.

In Japan, the Nikkei 225 Average rose 1.12%. The latest survey from Nikkei revealed that the manufacturing sector in Japan continued to expand in November, although at a slightly slower pace, with a PMI score of 51.3. That's down marginally from 51.4 in October, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction.

US stocks ended on a mixed note yesterday, 30 November 2016 in a volatile session of trade. Stocks retreated from their earlier highs after the Beige Book suggested there were no signs of any post-election euphoria and that the economy was expanding moderately.

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