The market ended the volatile session lower on Tuesday. Gains in IT stocks were offset by weakness in banks stocks. The Nifty managed to end above the crucial 11,000 mark after flirting with that level in intraday.
The barometer index, the S&P BSE Sensex, fell 74.48 points or 0.2% to 37,328.48, as per the provisional closing data. The Nifty 50 index fell 36.9 points or 0.33% to 11,017, as per the provisional closing data.
The S&P BSE Mid-Cap index was down 0.6%. The S&P BSE Small-Cap index was down 0.62%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 917 shares rose and 1524 shares fell. A total of 142 shares were unchanged.
Tata Motors (up 2.03%) and Mahindra & Mahindra (up 1.62%) powered indices higher.
Indiabulls Housing Finance (down 4.54%), Britannia Industries (down 3.2%), UltraTech Cement (down 2.95%) and Eicher Motors (down 2.74%) were top losers for the day.
Shares of IT companies jumped as rupee depreciated in foreign exchange market. Persistent Systems (up 3.75%), Infosys (up 1.89%), HCL Technologies (up 1.77%), TCS (up 1.12%), MindTree (up 1%), Mphasis (up 0.74%) and Wipro (up 0.32%) positively reacted to depreciation in rupee.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.7700, compared with its close of 71.435 during the previous trading session.
Shares of Sterling and Wilson Solar made a disappointing debut on exchanges. On BSE, Sterling and Wilson Solar closed at Rs 715, a discount of 8.33% over the initial public offer (IPO) price of Rs 780. The stock debuted at Rs 700, discount of 10.25% to the IPO price. The stock hit an intraday high of Rs 755.5 and an intraday low of Rs 691.
City gas distributor, Mahanagar Gas (MGL) jumped 7.86% to Rs 849.25 on reports Netherlands-based Royal Dutch Shell Plc, will sell its 10% stake for over Rs 700 crore. Shell holds its stake in MGL through its wholly owned subsidiary BG Asia Pacific Holdings. As on 30 June 2019, Shell's subsidiary held 98.77 lakh shares or 10% stake in MGL. Shell has exercised its option to exit the city gas distribution business as the lock-in period for minimum promoter holding after listing of a company expired last month. MGL was listed in June 2016 and the three year lock-in period, as per market regulator's listing norms expired on 1 July 2019.
CG Power and Industrial Solutions hit a 20% lower circuit at Rs 14.75 after an internal probe uncovered several irregularities in the financial statements of the company.
Following the disclosure by CG Power, shares of Yes Bank slumped 6.98% to Rs 71.35. As on 30 June 2019, Yes Bank held 12.79% stake in CG Power.
Maruti Suzuki India zoomed 4.09% to Rs 6219 after the company announced a new warranty scheme. The automotive major will offer a 5-year, 1-lakh km warranty for diesel-powered Dzire, S-Cross, Swift and Vitara Brezza. The 5-year, 1- lakh km warranty scheme will cover a host of parts and their replacements. High-pressure pump, compressor, Electronic Control Module (ECM), turbocharger assembly, critical engine and transmission parts will all be covered as part of the scheme. The steering assembly and suspension struts are also a part of the scheme. The company has also reported that it has received good response from its customers, for the BS-VI range of vehicles. The BS-VI models offered by the company currently constitute about 70% of the total petrol vehicles sold.
Vodafone Idea declined 1.67% to Rs 5.89 after company's chief executive officer, Balesh Sharma, resigned citing personal reasons. The board has approved the appointment of Ravinder Takkar as the Managing Director and Chief Executive Officer of the Company for a period of three years effective from 19 August 2019.
Dr. Reddy's Laboratories announced the launch of Vigabatrin Powder for Oral Solution, USP in the U.S. Market. The Vigabatrin Powder for Oral Solution, USP is a therapeutic equivalent generic version of Sabril Powder for Oral Solution, USP, approved by the U.S. Food and Drug Administration (USFDA). Vigabatrin Powder for Oral Solution is available in 500 mg per packet in count size of 50 per carton. The drug major rose 1.94% to Rs 2559.25.
NMDC tanked 11.73% to Rs 89.9 after media reports suggested that the Karnataka government has decided to cancel the lease given to the state-run company for the Donimalai iron ore mine and to put it under auction. In November 2018, NMDC had suspended operations at its Donimalai mine following the Karnataka government's decision to impose 80% premium on sales of iron ore. NMDC did not agree, stopped mining and petitioned the high court (HC), which in July 2019, allowed the firm to resume operations at the mine.
Overseas, European markets were trading higher. Finnish central bank governor Olli Rehn said on Monday that the European Central Bank (ECB) was determined to act if the medium-term inflation outlook continues to miss its target of below but close to 2%. This follows the German finance minster indicating over the weekend that the government is prepared to deploy fiscal stimulus to boost its ailing economy.
Asian markets closed on a mix note on Tuesday as the People's Bank of China published its new loan prime rates under a new mechanism that was unveiled over the weekend. The new 1-year LPR was set at 4.25%, as compared to 4.31% previously. The 5-year LPR was at 4.85%.
U.S. stocks rallied Monday, lifted by encouraging comments from President Donald Trump and other officials on trade talks, along with a move by China over the weekend to lower borrowing costs for companies.
The Commerce Department said Monday that it has given Chinese telecom giant Huawei Technologies Co. Ltd. another 90-day reprieve during which it can continue to do business with American companies, without the granting of case-by-case licences that would otherwise be needed, after the Commerce Department added it to its 'entity list' in May. At the same time, the Commerce Department added another 46 Huawei subsidiaries to the list that will be subject to the full sanctions after 19 November.
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