Monday, 12 December 2016

Sensex, Nifty sink by 1%, Auto and Bank worst hit

The Benchmark indices Sensex, Nifty ended the day in red, and touched day's low. Both indices dropped by 1%. Automobile, bank and cement stocks were the worst hit segments. The key trigger was the GST, wherein the committee were unable to reach a consensus on the roll out. There is a possibility that 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. The expectation is that the hike will be around 25 bps.

The major Asian indices ended on mixed note where expect for Nikkei other key indices closed on weaker note. Following the OPEC and non-OPEC meeting, the outcome of the meet has resulted in increase of oil prices. The prices touched its peak after nearly two years. Chinese share indices fell nearly 5% on reports that the government had imposed curbs on stock trading by insurance companies. Furthermore, European indices were weighed down by the weakness in share markets in China and Hong Kong due to the new developments in China.

The BSE Sensex ended with a gain of 230 points at 26515. The benchmark indices opened at 26725.31, touched an intra-day high of 26725.31 and low of 26468.59.

The NSE Nifty gained 91 points and closed at 8,170. It opened at 8,230.65 points, hitting a high of 8,230.65 and low of 8,154.45.

The India VIX (Volatility) index was down 6.98% at 16.1200. The BSE Midcap closed at 12395.65 and Smallcap indices closed at 12230.63, both indices ended losing close to 1%.

Out of 1401 stocks traded on the NSE, 909 declined and 427 advanced today.

A total of 33 stocks registered a fresh 52-week high in trade today, whereas 16 stocks touched a new 52-week low on the NSE.

At the close of day, ONGC, NTPC, TCS, Sun Pharma, Bosch, L&T were the top gainers while Ambuja Cement, BPCL, Eicher Motors, Ultratech Cement, IndusInd Bank, Axis Bank, ACC were among the losers on NSE.

Gold was trading at Rs 27,576 per 10 gms and silver was trading at Rs 41,221 per kg. Gold falls to 10-month lows, the primary reason for the downfall is the nearing US Federal Reserve Monetary Policy announcement that will be out following the meeting on the December 13-14. The industry is expecting a rate hike.

On the global front, most Asian indices closed in red, while Japan's Nikkei 225 ended marginally up and in green. In Europe, the FTSE 100 was down 0.20%. CAC 40 was down 0.11% and DAX was down 0.32% while, the US Nasdaq was also up 0.50%.

Noteworthy Stocks: 

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.
Natco Pharma launches Tamiflu oral capsules in US market; stock up 0.5%.
JSW Energy in talks to buy Monnet Power's Odisha plant, stock up 1.19%
NMDC shares up 1.94% as Q2 net profits were above estimates.
Life Insurance Corporation (LIC) has hiked its stake in Bata India by 2.03%, taking its total shareholding to 7.05% in the company.
Bajaj Finance Limited stocks down 5.75% is primarily the ensuing impact of demonetisation.

Sensex, Nifty sink by 1%, Auto and Bank worst hit

The Benchmark indices Sensex, Nifty ended the day in red, and touched day's low. Both indices dropped by 1%. Automobile, bank and cement stocks were the worst hit segments. The key trigger was the GST, wherein the committee were unable to reach a consensus on the roll out. There is a possibility that 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. The expectation is that the hike will be around 25 bps.

The major Asian indices ended on mixed note where expect for Nikkei other key indices closed on weaker note. Following the OPEC and non-OPEC meeting, the outcome of the meet has resulted in increase of oil prices. The prices touched its peak after nearly two years. Chinese share indices fell nearly 5% on reports that the government had imposed curbs on stock trading by insurance companies. Furthermore, European indices were weighed down by the weakness in share markets in China and Hong Kong due to the new developments in China.

The BSE Sensex ended with a gain of 230 points at 26515. The benchmark indices opened at 26725.31, touched an intra-day high of 26725.31 and low of 26468.59.

The NSE Nifty gained 91 points and closed at 8,170. It opened at 8,230.65 points, hitting a high of 8,230.65 and low of 8,154.45.

The India VIX (Volatility) index was down 6.98% at 16.1200. The BSE Midcap closed at 12395.65 and Smallcap indices closed at 12230.63, both indices ended losing close to 1%.

Out of 1401 stocks traded on the NSE, 909 declined and 427 advanced today.

A total of 33 stocks registered a fresh 52-week high in trade today, whereas 16 stocks touched a new 52-week low on the NSE.

At the close of day, ONGC, NTPC, TCS, Sun Pharma, Bosch, L&T were the top gainers while Ambuja Cement, BPCL, Eicher Motors, Ultratech Cement, IndusInd Bank, Axis Bank, ACC were among the losers on NSE.

Gold was trading at Rs 27,576 per 10 gms and silver was trading at Rs 41,221 per kg. Gold falls to 10-month lows, the primary reason for the downfall is the nearing US Federal Reserve Monetary Policy announcement that will be out following the meeting on the December 13-14. The industry is expecting a rate hike.

On the global front, most Asian indices closed in red, while Japan's Nikkei 225 ended marginally up and in green. In Europe, the FTSE 100 was down 0.20%. CAC 40 was down 0.11% and DAX was down 0.32% while, the US Nasdaq was also up 0.50%.

Noteworthy Stocks: 

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.
Natco Pharma launches Tamiflu oral capsules in US market; stock up 0.5%.
JSW Energy in talks to buy Monnet Power's Odisha plant, stock up 1.19%
NMDC shares up 1.94% as Q2 net profits were above estimates.
Life Insurance Corporation (LIC) has hiked its stake in Bata India by 2.03%, taking its total shareholding to 7.05% in the company.
Bajaj Finance Limited stocks down 5.75% is primarily the ensuing impact of demonetisation.

Nifty loses 98 points, Sensex drops 250 points- the fall continues

The benchmark indices continue to drop with auto and banking stocks leading the pack. The India Vix went up by 7%. Nifty sectoral indices are trading in red and Auto, Bank, and Media dropped by over 1.5%.

The European market kicked off on a mixed note. Industry eagerly awaits another rate decision from the US Federal Reserve Monetary Policy announcement will be made this week. Post the OPEC development, where OPEC and non-OPEC members over the weekend reached their first deal since 2001 to jointly reduce output in order to control the supply and boost the market. Following this, the oil prices shot up by 5% to their highest level since 2015.

As the downtrend continues, another trigger is the GST, wherein the committee were unable to reach a consensus on the roll out. There is a possibility that government might fail to meet its April 1, 2017 deadline. In addition, weak INDEX OF INDUSTRIAL PRODUCTION 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 02:43 AM, the S&P BSE Sensex is trading at 26485 down 261 points, while NSE Nifty is trading at 8,163 down 98 points. A total of 33 stocks registered a fresh 52-week high in trade today, while 14 stocks touched a new 52-week low on the NSE.

Out of 1892 stocks traded on the NSE, 1060 declined, 512 advanced and 320 remained unchanged today.

The BSE Mid-cap Index is trading down 1.34% at 12366.79, whereas BSE Small-cap Index is trading down 0.81% at 12220.23.

Auto, Bank, Consumer Durables, Oil & Gas are showing weakness on BSE.

ONGC, NTPC, Sun Pharma, LT, TCS, PowerGrid, Reliance are among the gainers, whereas BPCL, Ultratech Cement, Asian Paint, Eicher Motors, Tata Motor DVR, Bajaj Auto are losing sheen on NSE.

The INDIA VIX is up 7.49% at 16.1975.

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.

Indian benchmark indices open in red.

At 9:15 AM, the S&P BSE Sensex is trading at 26,619, down by 126 points, while NSE Nifty is trading at 8,219 down by 42 points.

Over the weekend, OPEC once again managed a pleasant surprise for itself as non-members too agreed to cut output and reduce oversupply. This deal, struck for the first time in the last 15 years, led to oil prices flaring to the highest level in two years.

It was a healthy week for Indian equity market that saw the top 10 firms adding over Rs 56,000 crore to their market-cap. TCS was the lone loser in the top league. Foreign investors were net buyers to the tune of Rs 140 crore in the equity market in December but the selling in debt market continues as they pulled out over Rs 17,000 crore in this segment.

On the macro front, India’s industrial output contracted by 1.9% (yoy) during October. The retail inflation (CPI) numbers are scheduled later today. The Goods and Services Tax (GST) implementation by April 1 remains a worry as the GST council was unable to reach an agreement to clear the draft law on Sunday.

Gold prices tumbled to ten month low of US $ 1,157/oz at one point of time, with values registering fifth weekly consecutive decline. Strong US dollar and jitters regarding a Fed rate hike next week continues to take a toll on the precious pack. Although 25 bps rate hike is already discounted by the markets, investors will be more interested in language of the policy statement. Market participants will try to gauge what Fed intends to do during the course of next 12 months and what is the probability of subsequent rate hikes.