MARKET WRAP: Sensex dips 162 pts on US-Iran tensions; PSBs, autos top drags

All that happened in the markets today

3:40 PM

Sectoral trends at NSE at close

3:39 PM

Top gainers and losers on S&P BSE Sensex at close

3:38 PM

Closing Bell

>> The S&P BSE Sensex, which hit an intra-day low of 41,348.68, recovered slightly in the fag-end of the session and settled 162.03  points, or 0.39 per cent, lower at 41,464.61 level. 24 of the 30 constituents ending the day in the red. Oil-linked stocks, such as paints, aviation, oil-marketing companies (OMCs), and financial counters remained under pressure. 

>> On the NSE, the Nifty50 lost 55.50 points, or 0.45 per cent, to settle at 12,226.65-mark. Sectorally, Nifty PSU Bank index slipped the most, down 2 per cent at close. Besides, Nifty Bank, Auto, Private Bank indices slipped over 1 per cent. On the upside, Nifty IT index advanced 1.3 per cent on the back of a weaker rupee. 

3:16 PM

Bosch likely to cut around 2,000 jobs in India amid auto sales slump

The German company will cut “a couple of thousand” jobs in India in the next four years, India Managing Director Soumitra Bhattacharya said. About 10 per cent of 3,700 white-collar jobs and a slightly higher percentage of 6,300 blue-collar jobs will be cut, he added in an interview in Bangalore on December 30. READ MORE

2:58 PM

Pharma stocks gain in a weak market

2:49 PM

Buzzing | Zee Ent continues to trade lower

2:41 PM

Oil update

Brent crude futures jumped nearly $3 on Friday after a U.S. air strike in Baghdad killed top Iranian and Iraqi military commanders, sparking concerns of disruption to Middle East oil supplies.

Brent crude futures hit an intraday high of $69.16 a barrel, their highest since September 17, before easing to $68.42, up $2.17 or 3.28 per cent. West Texas Intermediate (WTI) crude futures were up $1.85 or 3.04 per cent at $63.03 a barrel, having earlier spiked to $63.84 a barrel, their highest since May 1.

2:35 PM

Global Markets check

Asian shares slipped on Friday, erasing early gains, while gold shone and oil prices spiked after US air strikes in Iraq killed a top Iranian commander, heightening geopolitical tensions.

Iranian Major-General Qassem Soleimani, head of the elite Quds Force and top Iraqi militia commander Abu Mahdi al-Muhandis were killed early on Friday in a US air strike on their convoy at Baghdad airport, prompting Iran’s Supreme Leader Ayatollah Ali Khamenei to vow harsh revenge.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan had touched its highest point since June 15, 2018 in early trade, but fell after reports of the air strike emerged. It was last down 0.16 per cent.

 

European shares were set to follow their Asian counterparts lower. Pan-region Euro Stoxx 50 futures shed 0.66 per cent to 3,757, German DAX futures were down 0.6 per cent to 13,303.5 and FTSE futures gave up 0.42 per cent to 7,514.

 

China’s CSI300 index, one of the world’s best-performing indexes last year, struggled to stay in positive territory but was last down about 0.2 per cent. Australian shares finished up 0.64 per cent, but off earlier highs.

2:21 PM

Do sovereign gold bonds bought in secondary market make good investments?

Gold has been in the limelight during CY2019 with returns over 20 per cent. Investors are keenly eyeing gold as an investment option in one form or the other, be it in physical or digital gold–gold exchange traded fund (ETF), fund of funds investing in gold ETF or through sovereign gold bonds (SGB). As physical gold does not give any interest or dividend, fans of ‘regular income’ prefer SGB over bullion and gold ETF. However, SGB issuances are not available round the year. Either you have to wait for a new issue or buy it from the secondary market. If you are keen to take exposure to gold via SGBs, is it a wise to buy from the secondary market? READ MORE

2:19 PM

NEWS ALERT | Indian airlines asked to exercise caution over Iranian airspace amid US-Iran tensions: sources to CNBC TV18

>> Airlines have been asked to avoid the air space to the extent possible

 

Alert- IndiGo & Air India to exercise caution in flight ops over Iranian airspace

2:17 PM

Market check

2:05 PM

Operating profitability the Achilles' heel for General Insurance Corporation

The General Insurance Corporation of India (GIC) stock surged 8 per cent to close at Rs 245.25 on Thursday. However, it has still shed 7.5 per cent in one month and is trading much below its listing price of Rs 400. A weak performance during H1FY20, with the combined ratio worsening to over 111 per cent, had made investors jittery. READ MORE

1:53 PM

Buzzing | IndiGo gains 3% on EGM news

1:36 PM

BUZZING STOCK:: SML Isuzu zooms 7%

>> Says, ready to manufacture BS-VI compliant diesel trucks and buses suitable for all types of Indian road terrains

1:23 PM

Now, Ratan Tata moves SC against NCLAT order restoring Cyrus Mistry

A day after Tata Sons moved the Supreme Court, Tata group patriarch, Ratan Tata also joined issue and filed a petition in the top court appealing it to set aside the National Company Law Appellate Tribunal (NCLAT) order which had restored former Tata group chairman, Cyrus Mistry as Executive Chairman and termed conversion of Tata Sons from public to private company as 'illegal'. READ MORE

1:22 PM

BSE500 stocks that hit 52-week high today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(rs)	CHG(%)
AAVAS FINANCIERS	2040.00	2050.00	49.10	2.47
ADANI GREEN	192.65	192.65	9.15	4.99
FDC	216.30	222.00	5.60	2.66
GMR INFRA.	22.75	23.35	1.10	5.08
GUJ.ST.PETRONET	236.10	243.30	4.00	1.72

1:12 PM

NEWS ALERT | IndiGo to hold Extraordinary General Meeting on Jan 29: NSE filing

>> Rakesh Gangwal calls for EGM seeking amendment of the Articles of Association, reports CNBC TV18

1:08 PM

NEWS ALERT | Info Edge to divest entire stake in Applect Learning Systems (Meritnation) for Rs 50 cr: NSE filing

Says, entered into an agreement for divestment of its total shareholding, on fully converted & diluted basis, (including holding through its wholly owned subsidiary) in Applect Learning Systems Private Ltd. ( Meritnation ).

1:04 PM

Contribution to S&P BSE Sensex's fall today

1:01 PM

NEWS ALERT | CARE reaffirms 'AA+' rating on Zydus Wellness' NCDs worth Rs 1,500 cr: BSE filing

12:52 PM

NEWS ALERT | 1 cr shares of Hathway Cable (0.6% equity) change hands on NSE at Rs 19.50/sh

12:44 PM

Marico falls 4% in two days on concerns over volume growth in Q3

Shares of Marico were down 2 per cent at Rs 331 on the BSE on Friday. The stock has fallen 4 per cent in the past two days, on concerns over weak volume growth in the October-December quarter (Q3FY20). The personal products company's stock was trading close to its 52-week low price of Rs 325, touched on February 18, 2019. READ MORE

12:42 PM

US attack on Qassem Soleimani to hit India's economic recovery, say analysts

Analysts see the development affecting India's economic recovery in the short-term.

 

"If the tensions persist for a few months, the Indian economy may take a hit again as high crude oil prices will stoke inflation... If Brent Crude hits $80 per barrel-mark, inflation will begin rising and margins of corporations may be negatively affected," says G Chokkalingam, founder, Equinomics Research & Advisory. He advises investors to stay cautious for a few weeks and monitor the situation. READ MORE

Iran's Major General Qassem Soleimani

12:17 PM

BUZZING STOCK:: Sarda Energy & Minters up 3%

12:14 PM

Market check

12:07 PM

IIFL Securities hits 5% upper circuit as Rakesh Jhunjhunwala buys stake

Shares of IIFL Securities were locked in 5 per cent upper circuit for the third straight day at Rs 47.15 on the BSE on Friday after ace investor Rakesh Jhunjhunwala bought nearly one percentage point stake in the financial services firm via open market. On Thursday, January 2, 2020, Rakesh Jhunjhunwala's RARE Enterprises purchased 2.78 million equity shares representing 0.87 per cent stake for Rs 11.92 crore in a bulk deal on BSE. The shares were bought at a price of Rs 42.83 per share. READ MORE

11:45 AM

HDFC Bank slides over 1%

11:31 AM

BPCL, Air India, Concor divestments unlikely by March-end: Govt official

The government is unlikely to complete the strategic sale of Bharat Petroleum Corporation (BPCL), Container Corporation of India (Concor), and Air India by March-end, said a senior government official. “The government has to respond to what the potential bidders ask for. Sometimes, they seek time to examine financial statements. Sometimes, they want to do physical due diligence,” said the official. READ MORE

11:15 AM

Expert Comment :: Ravindra Rao, VP- Head Commodity Research at Kotak Sec on US -Iran tension

US-Iran tensions were already high owing to US sanctions on Iran, attack on Saudi oil facilities last year and various incidents in the Middle East. Today’s development will further intensify tensions between US and Iran and spur safe haven buying in Gold. Crude oil price might further move higher amid concerns about retaliatory moves by Iran.

 

However, market reaction may subside if there is no retaliatory move by Iran or no major exchange of words between Tehran and Washington.

 

On the price front, WTI Crude oil is trading close to the resistance near $64/bbl. If the resistance holds, we expect a corrective dip in prices. On the contrary, if the price sustains above $64/bbl the upside might extend to $65.50/bbl. In case of Gold, the immediate resistance is near $1546/Oz. On break of the resistance, the price might move close to the September 2019 highs of $1560/Oz

10:55 AM

NEWS ALERT | NCLAT reserves order on RoC plea seeking modification of NCLAT judgement: CNBC TV18

>> NCLAT observes, Mistry judgment does not cast any aspersions against the RoC & MCA