Monday 12 December 2016

Nifty, Sensex under pressure, IT and Auto stocks down

Downtrend on Monday morning continues with auto and banking stocks continuing to lose sheen. The India Vix went up by 5%. Nifty Auto, FMCG, and Private Banks dropped by more than 1%. IT and Auto stocks are both trading lower today.

Trump's speech where he emphasised his anti-immigrant policies have played a hand in IT stocks losing sheen, while, auto companies are witnessing a drop primarily because the industry is expecting a drop in demand in the near future. 

One key trigger is the GST meeting's inconclusiveness in reaching a consensus on the roll out. There is a possibility that the government might fail to meet its April 1, 2017 deadline.

In addition, weak Index of Industrial Production (IIP) data, which was released last Friday, stated the overall industrial output has reduced by 1.9% yoy in October. Another factor is the US Federal Reserve's Monetary Policy which is due this week. The meeting is to be held on December 13-14. Industry is expecting that the US Fed will raise rates with the hike estimated to be around 25 bps.

At 11:50 AM, the S&P BSE Sensex is trading at 26619 down 127 points, while NSE Nifty is trading at 8,209 down 52 points. A total of 29 stocks registered a fresh 52-week high in trade today, while 14 stocks touched a new 52-week low on the NSE.

Out of 1891 stocks traded on the NSE, 876 declined, 658 advanced and 357 remained unchanged today.

The BSE Mid-cap Index is trading down 0.65% at 12453.92, whereas BSE Small-cap Index is trading down 0.28% at 12286.10.

In the morning hours of trading Auto, Bank, Information Technology, FMCG, Oil & Gas are showing weakness on BSE, while some buying is observed in Metal, Energy and Utilities sectors.

NTPC, ONGC, Reliance, Sun Pharma, Coal India, Lupin are among the gainers, whereas Grasim, Asian Paints, BPCL, Ambuja Cement, Bajaj Auto are losing sheen on NSE.

The INDIA VIX is up 5.25% at 15.8600.

Titagarh Wagons Ltd shares up 4.82%, acquires order for construction of fuel barges for the Indian Navy.

Natco Pharma launches Tamiflu oral capsules in US market; stock up 0.5%.

Om Metals Infraprojects Ltd stocks up 6.02%, receives LOA from FCI for four locations.

JSW Energy in talks to buy Monnet Power's Odisha plant, stock up 1.19%

Bata India stocks up 1.1%, LIC intends to increase stake in the company.

NMDC shares up 1.5% as Q2 net profits were above estimates.

IRB Infra shares up 2.2% as the company bags 90 km highway development project in Rajasthan.

MIC Electronics Ltd has received a letter of award for supply of 20,000 standalone off-grid solar LED street lights with a contract price of Rs 329 mn.

Mahindra & Mahindra Ltd (M&M) has launched the CNG variant of its popular mini-truck Jeeto, priced at Rs 0.35 mn (ex-showroom, Delhi). The CNG variant will be available at the top-end model of Jeeto X716.

State Bank of India sold 3.9% stake in its life insurance venture SBI Life to private equity firms KKR and Temasek. The deal values SBI Life at Rs 460 bn.

Oil and Natural Gas Corp is awaiting nod of upstream regulator DGH to commence investing USD5.07bn in bringing to production oil and gas discoveries in its Bay of Bengal block KG-D5.

Life Insurance Corporation (LIC) has hiked its stake in Bata India by 2.03%, taking its total shareholding to 7.05% in the company.

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