Domestic equity market corrected on Monday amid profit booking after a stellar rally in the past three sessions. The Nifty 50 index added 1.93% in the past three days supported by US reaching a trade agreement with China and Boris Johnson's crushing victory in UK election.
The barometer index, the BSE Sensex, fell 70.99 points or 0.17% to 40,938.72. The Nifty 50 index slipped 26 points or 0.22% to 12,060.70.
In the broader market, the S&P BSE Mid-Cap index fell 0.46% and the S&P BSE Small-Cap index lost 0.20%.
The market breadth was negative. On BSE, 1144 shares advanced while 1342 shares declined. A total of 216 shares were unchanged.
Economy:
The annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 0.58% (provisional) in November 2019 (over November 2018) compared with 0.16% (provisional) for the previous month and 4.47% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 2% compared to a buildup rate of 4.56% in the corresponding period of the previous year.
The rate of inflation based on WPI Food Index consisting of food articles from primary articles group and food product from manufactured products group increased from 7.65% in October 2019 to 9.02% in November 2019.
India's merchandise exports declined 0.3% to $25.98 billion in November 2019 over a year ago. Meanwhile, merchandise imports also dipped 12.7% to $38.11 billion. The trade deficit narrowed 31.0% to $12.12 billion in November 2019 from $16.67 billion in November 2018.
As per the data released by the Reserve Bank of India, India's services exports increased 5.3% to $17.70 billion in October 2019 over October 2018. Meanwhile, India's services imports jumped 7.6% to $10.86 billion in October 2019. India's services trade surplus rose 1.8% to $6.83 billion in October 2019 from $6.72 billion in October 2018.
Meanwhile, the total rabi acreage in the country registered a 5% increase this year to 487 lakh hecatres (LH) as on 12th December 2019, as per the data released by the Agriculture Ministry. The area under wheat the primary rabi crop witnessed a sharp surge of nearly 10% to 248 LH, mainly due to jump in acreage in Madhya Pradesh and Rajasthan. Rabi crops are sown in winter and harvested in the spring in India.
Crude & Currency:
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.03, compared with its close of 70.83 during the previous trading session.
In the commodities market, Brent crude for February 2020 settlement rose 9 cents at $65.31 a barrel. The contract fell 33 cents or 0.51% to settle at $64.89 a barrel during the previous trading session.
Buzzing Index:
The Nifty Metal index fell 1.32% to 2,592.20. The index surged 4.67% in the past two trading sessions after US-China trade deal optimism.
SAIL (down 2.83%), NALCO (down 2.64%), Tata Steel (down 1.8%), JSW Steel (down 1.69%), Vedanta (down 1.44%), Hindustan Copper (down 1.06%) and Hindalco Industries (down 0.84%) edged lower.
Jindal Steel & Power (JSPL) fell 1.44% to Rs 136.75. According to reports, the allotment of the Gare Palma IV/I to Jindal Steel & Power (JSPL) has been rejected in public interest due to low valuation. JSPL had emerged as the highest bidder for the coal block with a bid price of Rs 230 per tonne, a premium of 53% over reserve price of Rs 150/tonne. The coal block would have helped JSPL's EBIDTA to rise by about Rs 500-900 crore, reports suggested.
The Nifty FMCG index fell 1.24% to 30,047.90 on profit booking. The index rose 1.22% in the past three trading sessions.
GlaxoSmithKline Consumer Healthcare (down 1.99%), Bajaj Consumer (down 1.84%), Tata Global (down 1.71%), Hindustan Unilever (down 1.57%), Marico (down 1.32%), Nestle India (down 0.99%), Colgate-Palmolive (India) (down 0.92%), Jyothy Laboratories (down 0.5%), Dabur India (down 0.4%) and Procter & Gamble Hygiene and Health Care (down 0.19%) declined.
Stocks in Spotlight:
Edelweiss Financial Services rose 0.99%. The Competition Commission of India (CCI) approved Sanaka Growth SPV I (Sanaka) investment in Edelweiss Securities (ESL). The proposed combination relates to investment by Sanaka in ESL and Edelweiss Global Investment Advisory Business (EGIA) subsidiaries of up to INR equivalent to $44 million, the regulator added.
Adani Green Energy rose 1.36% after the media reported that the company may buy the remaining solar energy portfolio of the Essel Group. The company had signed an agreement in August this year to acquire the 205 megawatt (MW) of operational solar assets for Rs 1,300 crore.
Sun Pharmaceutical Industries declined 0.83%. The company in an exchange filing said that the US Food and Drug Administration (USFDA) had issued a Form 483, with eight observations, for its Halol facility post the CGMP inspection conducted between 3 and 13 of this month.
Maruti Suzuki India fell 1.20%. The car major said it sold over 6 lakh automatic transmission passenger vehicles. Out of these 6 lakh automatics sold, over 5 lakh vehicles are equipped with popular Auto Gear Shift (AGS) technology.
Reliance Industries (RIL) declined 1%. RIL's subsidiary, Reliance Strategic Business Ventures (RSBVL), acquired 57.18% equity stake in Asteria Aerospace for Rs 23.12 crore. Asteria Aerospace is a full-stack drone technology company with in-house drone manufacturing capabilities.
Adani Ports & Special Economic Zone fell 2.45%. The company incorporated a wholly-owned subsidiary, Adani Pipelines, on 12 December 2019. The said subsidiary of the company will carry out business of transportation of crude, oil, gas, petroleum products through rail, road pipeline, sea, waterways & other related activities.
Indoco Remedies surged 3.03%. The pharma company announced that its sterile manufacturing facility (Plant II) at Verna, Goa, has received EU GMP certification from the UK Health Regulator. This is an outcome from the last successful inspection conducted by UK Medicines and Healthcare products Regulatory Agency (MHRA) from 16 to 20 September 2019.
Ramco Systems advanced 1.92% after the company said it won a contract from China Aircraft Services to implement its aviation software.
Astron Paper & Board Mill rose 1.83%. The company entered into a strategic partnership agreement with China's Shandong Zhonghui Supply Chain Management (ABC Paper). It added that ABC Paper will transfer technical knowledge and experience for upgrading the company's plant. This will improve the company's operating efficiency and also assist to export in China.
Foreign Markets:
Shares in Europe traded higher while most Asian stocks ended lower on Monday after the U.S. and China agreed a 'phase one' trade deal, though investors are likely to remain cautious with some details remaining unclear.
Washington and Beijing announced on Friday that an agreement had been reached pending legal procedures, a significant step forward after a bruising 18-month trade war.
However, questions have been raised by market participants over some details of the deal which remain hazy, notably the scale of agricultural purchases and the prospect of China balancing bilateral trade flows.
U.S. Treasury Secretary Steven Mnuchin has reportedly said that the deal would be signed in early January and that phase two may then be negotiated in stages.
China's industrial production rose 6.2% year-on-year in November, according to its National Bureau of Statistics. Retail sales rose 8.0% year-on-year.
Back in Europe, British Prime Minister Boris Johnson will welcome 109 new Conservative lawmakers to parliament on Monday, promising to move forward swiftly with Brexit and to increase funding to the National Health Service (NHS).
The US stock market finished session higher on Friday, 13 December 2019, as appetite for riskier assets underpinned on cooling trade tensions between the two largest economies of the world.
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