Elections & Markets: Indices ignore polls, Patel's exit; Sensex up 190 pts

The broader market indices overperformed their benchmark peers, with the S&P BSE MidCap index rising 1.5 per cent to end the day at 14,669, while the S&P BSE SmallCap index rose 1.5 per cent at 14,059

4:38 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

With BJP losing power in key states and uncertainty hovering around post the RBI governor’s resignation, we prefer to remain cautious on the Indian equities in the near term despite a smart rebound in today’s session. The domestic macro data like IIP, CPI & WPI, crude oil price & currency movement and global developments, especially on the US-China trade front will be closely monitored by the market participants. Investors’ focus should remain on fundamentally sound companies with strong growth prospects, while traders should avoid risky leveraged positions

3:39 PM

Sectoral trend on NSE

3:37 PM

S&P BSE Sensex top gainers and losers

3:33 PM

Market at close

 

The S&P BSE Sensex ended at 35,150, up 190 points while the broader Nifty50 index settled at 10,555, up 68 points.

3:23 PM

Web Exclusive Why market has taken BJP's election setback in its stride

 

After sliding nearly 500 points in the opening deals, the domestic equity market pared all its losses and later swung into the positive territory on Tuesday, signalling investors are not too unhappy with the results and they are seeing a light of hope. The only uncertainty was the sudden resignation of RBI Governor Urjit Patel, which triggered a knee-jerk reaction in the morning. Counting of votes in five states is underway. Congress candidates took significant lead in BJP-ruled Chhattisgarh and was inching ahead of the BJP in Rajasthan. Read more

3:15 PM

Web Exclusive State poll outcome is not a big worry for the markets: U R Bhat

 

The Bharatiya Janata Party (BJP) has not done well, especially in the large states. As far as the markets are concerned, the state election results do not matter much. This time around, people are extrapolating this to the general elections scheduled in 2019.

 

I believe that the current dispensation at the Centre still has some hold over the electorate. This, in turn, is giving hope to the market. The markets have digested the bad news and are now looking ahead to other events. The general elections are still a few months away. In the interim, most negative information is already in the stock prices. Read more

3:12 PM

PSU banks in focus; Corporation Bank, PNB, Uco Bank up over 5%

Shares of public sector undertaking (PSU) banks were in focus, with the Nifty PSU Bank index gaining more than 2% and bouncing back 4.4% from its early morning low, as the markets shrug off worries over Reserve Bank of India (RBI) governor's exit. READ MORE

2:54 PM

Web Exclusive 'Poll outcome unexpected; need a quick replacement for Urjit Patel'

 

Markets have taken the outcome of state assembly polls and the sudden exit of the Reserve Bank of India's governor in their stride. Jitendra Gohil, head of India equity research at Credit Suisse Wealth Management tells Puneet Wadhwa that foreign investors now will take a wait-and-watch approach as regards India given these developments. Read full interview here

JItendra Gohil, India equity research head at Credit Suisse

2:43 PM

NEWS ALERT Fitch says the previous RBI Governor Raghuram Rajan also resigned under similar conditions. Patel's exit points to next Governor being more amenable to Govt’s pro-growth aim

2:42 PM

NEWS ALERT Fitch says Patel’s shock resignation will raise monetary policy uncertainty in India; monetary policy uncertainty already begun to affect India's financial assets

2:38 PM

NEWS ALERT Fitch says believe that Urjit Patel's resignation bodes poorly for macroeconomic & financial stability in India, reports CNBC TV18

2:36 PM

Gold prices up as dollar slips, hints of pause in rate hike cycle by Fed

Gold prices edged higher on Tuesday, supported by hopes that the U.S. Federal Reserve could pause its rate hike cycle sooner than expected and as the dollar slipped after the previous session's rally.

 

Spot gold was up 0.2per cent at $1,247.26 per ounce, as of 0719 GMT. It touched its highest in nearly five months at $1,250.55 in the prior session. US gold futures were 0.2 per cent higher at $1,252.1 per ounce. READ MORE

2:28 PM

Top gainers in Nifty50 index

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
YES BANK	175.10	165.65	9.45	5.70	64626899
SUN PHARMA.INDS.	421.00	399.00	22.00	5.51	19391655
ASIAN PAINTS	1329.65	1274.20	55.45	4.35	1339500
AXIS BANK	610.35	590.30	20.05	3.40	13309737
ZEE ENTERTAINMEN	480.45	466.15	14.30	3.07	2602986

2:16 PM

PM Modi got into action on Monday evening to choose next RBI governor

Late Monday evening, soon after RBI governor Urjit Patel announced his resignation, Prime Minister Narendra Modi is learnt to have called a meeting of top officials. With the entire dispensation caught off guard a day before the results of five Assembly elections were to be out and four days ahead of the RBI board meeting, the government quickly got into action to shortlist the names of suitable candidates for the next governor. READ MORE

2:07 PM

Top gainers in S&P BSE Midcap index

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
SHRIRAM TRANS.	1155.40	1091.55	63.85	5.85	50967
DEWAN HSG. FIN.	207.70	196.75	10.95	5.57	1209027
COLGATE-PALM.	1259.85	1202.00	57.85	4.81	29483
MAX FINANCIAL	426.95	407.75	19.20	4.71	53136
AJANTA PHARMA	1064.95	1018.70	46.25	4.54	23671
LIC HOUSING FIN.	438.55	420.60	17.95	4.27	73640
M & M FIN. SERV.	415.70	400.45	15.25	3.81	292462
GLENMARK PHARMA.	659.80	635.75	24.05	3.78	75825
KANSAI NEROLAC	449.50	433.30	16.20	3.74	11971

2:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,044.70	+84.98	+0.24
S&P BSE SENSEX 50	11,012.11	+42.90	+0.39
S&P BSE SENSEX Next 50	31,313.37	+535.07	+1.74
S&P BSE 100	10,778.80	+63.19	+0.59
S&P BSE Bharat 22 Index	3,304.06	+32.44	+0.99

1:51 PM

YES Bank up 6% ahead of the December 13 board meeting

1:41 PM

Urjit Patel's quiet exit from Reserve Bank doesn't really help India

 

People who know Urjit Patel, the Reserve Bank of India governor, told me he would stay on and fight. That was in late October, when it became clear from his deputy’s speech that New Delhi was making a determined attempt to curtail the RBI’s authority as a banking regulator, and even to raid its capital. But after a November meeting of the institution’s board, it looked like the central bank and the government had decided not to bring matters to a head and Patel, whose term expires in September 2019, would stick around. Read more

1:29 PM

Expert Views: Markets shrug off worries over RBI chief's exit, poll results

Indian markets clawed back from sharp falls early in the session on Tuesday, recovering from the shock of an abrupt departure of Reserve Bank of India Governor Urjit Patel, while votecount of the state elections pointed to a potential loss for the ruling party. The ruling Bhartiya Janata Party (BJP) could lose power in three key states, four TV networks said on Tuesday, citing votecount leads, potentially handing Prime Minister Narendra Modi his biggest defeat since he took office in 2014, and months ahead of a general election. READ MORE

1:26 PM

Top gainers in BSE500

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
QUESS CORP	660.30	54.50	9.00	21536
CORPORATION BANK	26.95	1.95	7.80	68891
YES BANK	174.90	9.55	5.78	4713725
UCO BANK	18.50	1.00	5.71	162101
DEWAN HSG. FIN.	207.65	10.90	5.54	1060572

1:10 PM

Poll results a wake-up call for BJP; good time to start investing: Baliga

The markets were preparing for this sort of a mandate, though not as bad as what has emerged today. They were expecting Bharatiya Janata Party (BJP) to lose in Madhya Pradesh (MP) and a loss in Rajasthan was priced in nearly two months ago. Chhattisgarh, where it was supposed to be a close fight, BJP has lost badly. On the contrary, it has done better in MP compared to expectations. READ MORE
 

12:39 PM

S&P BSE Sensex top gainers and losers

12:24 PM

Web Exclusive Elections & Markets: Have the Sensex, Nifty bottomed out? A quick check

The benchmark indices have trimmed their day's losses and are now trading marginally lower amid Reserve Bank of India's (RBI) governor Urijit Patel's resignation and the outcome of the assembly polls in five states.

 

The S&P BSE Sensex recovered over 200 points after slipping over 500 points to hit an intra-day low of 34,426.29. READ MORE
 

12:20 PM

PhilipCapital on Bajaj Electricals

 

RATING: BUY

CMP: RS 474

TARGET: RS 660

 

- Currently, CD is trading at a PE of 20.5x FY20 and E&P is trading at an FY20 EV/EBITDA of 7x. In E&P, healthy order book and improved execution will result in strong revenue growth.

- Over the next two years, we expect the valuation gap between BJE and its peers to narrow as:
(1) TOC yields results,
(2) its focus on leveraging its distribution network through geographical and product expansion will result in market share gains,
(3) there is strong revenue visibility, with levers for margin expansion, and
(4) working capital improves.

- We expect PAT CAGR of 97% over FY18-20 for BJE.

- We assign a target multiple of 30x to CD (12% discount to the industry average) and 8x EV/EBITDA for E&P. Maintain BUY with an SOTP-based revised target of Rs 660 (Rs 491 CD + Rs 169 E&P).

12:08 PM

Ignore market volatility and invest for the long term: G Chokkalingam

 

Overall market-cap is down by Rs 22 lakh crore, mostly by the small-and-mid cap stocks. Nearly 1,000 stocks are down by 50% from heir peak prices. Indian equity market is peculiar in the world - more than 7,000 stocks are listed and around 4,000 stocks are actively traded. This market has a large number of small and mid cap stocks - they create huge wealth periodically in the long run. Of course, the risk is from stock selection. READ MORE

12:04 PM

Market check 

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,921.31	-38.41	-0.11
S&P BSE SENSEX 50	10,968.97	-0.24	0.00
S&P BSE SENSEX Next 50	31,170.82	+392.52	+1.28
S&P BSE 100	10,735.52	+19.91	+0.19
S&P BSE Bharat 22 Index	3,282.53	+10.91	+0.33

11:53 AM

Strides Pharma gains 6% as JV receives approval for Albendazole tablets

 

Shares of Strides Pharma Science have moved higher by 6.4% to Rs 458 apiece on BSE after the company announced that it's 50:50 joint venture (JV) Strides Vivimed Pte. Ltd, Singapore has received approval for Albendazole tablets USP 200 mg from the United States Food & Drug Administration (US FDA). This is the second generic approval by US FDA for Albendazole tablets to be launched immediately. Albendazole Tablets is a generic version of Albenza tablets of Amneal Pharmaceuticals, Inc. Read more

11:45 AM

Markets will now revert to merit-based investing: Deven Choksey

The Bharatiya Janata party needs to change its communication strategy. Instead of talking wrong doings of the Congress, talking about punishment to Congress family members and mimicking them, BJP is required to talk more about what would they do differently in terms of acclerating growth in the economy. Investors expected BJP to talk positively. READ MORE

11:43 AM

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11:42 AM

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