Benchmarks slip into the red; breadth turns negative

Key benchmark indices slipped into negative terrain and hit fresh intraday low in mid-afternoon trade. At 13:25 IST, the barometer index, the S&P BSE Sensex, was down 56.80 points or 0.16% at 36,113.61. The Nifty 50 index was down 12 points or 0.11% at 10,846.70. Negative opening in European stocks triggered profit selling in the domestic equity market.

Among secondary barometers, the BSE Mid-Cap index was up 0.27%. The BSE Small-Cap index was up 0.34%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 1176 shares rose and 1316 shares fell. A total of 150 shares were unchanged.

FMCG shares were mixed. Colgate Palmolive (India) (down 2.01%), Marico (down 1.13%), Dabur India (down 1.04%), Hindustan Unilever (down 0.97%), Jyothy Laboratories (down 0.56%), Tata Global Beverages (down 0.39%) and Bajaj Corp (down 0.28%), edged lower. Procter & Gamble Hygiene & Health Care (up 0.13%), Nestle India (up 0.28%), Godrej Consumer Products (up 0.36%), GlaxoSmithKline Consumer Healthcare (up 0.86%) and Britannia Industries (up 1.24%), edged lower.

Capital goods shares were mixed. Reliance Defence and Engineering (up 3.49%), AIA Engineering (up 2.98%), Siemens (up 2.32%), SKF India (up 1.59%), Praj Industries (up 1.23%), Suzlon Energy (up 1.18%), ABB India (up 1.14%), Crompton Greaves (up 1.04%), Jindal Saw (up 0.68%) and Thermax (up 0.09%), edged higher. Lakshmi Machine Works (down 0.45%), Punj Lloyd (down 0.99%), GE Power India (down 1.11%), Bharat Heavy Electricals (down 1.25%), Havells India (down 1.28%), BEML (down 1.42%), GE T&D India (down 1.45%) and Bharat Electronics (down 2.52%), edged lower.

Engineering and construction major Larsen & Toubro was down 0.45%.

Meanwhile, Prime Minister Narendra Modi reached Buenos Aires, the capital of Argentina for the 2018 G20 summit, which is scheduled to begin today, 30 November 2018. The theme of the G20 summit is Building Consensus for a Fair and Sustainable Development.

According to reports, PM Modi met with Saudi Arabia Crown Prince Mohammed bin Salman on the sidelines of the G20 summit and they discussed ways to further boost economic, cultural and energy ties. The two sides also held discussions on enhancing investment in technology, renewable energy and food security.

On the sidelines of the two-day 13th G-20 summit, Modi, Trump and Japanese Premier Shinzo Abe will reportedly hold a trilateral meeting amidst China flexing its muscles in the strategic Indo-Pacific region. The trilateral, which would be an expansion of the bilateral meeting between Trump and Abe, is part of the series of meetings the US president would have on the sidelines of the G-20 summit on November 30 and December 1.

On the macro front, the government will announce data on September quarter gross domestic product (GDP) later today, 30 November 2018. The Indian economy grew 8.2% year-on-year in the previous quarter, above 7.7% in the previous three months.

The Reserve Bank of India (RBI) on Thursday, 29 November 2018, relaxed rules for non-banking financial companies (NBFCs) to sell or securitise their loan books. In order to encourage non-banking financial companies (NBFCs) to securitise/assign their eligible assets, RBI has been decided to relax the minimum holding period (MHP) requirement for originating NBFCs, in respect of loans of original maturity above 5 years, to receipt of repayment of six monthly instalments or two quarterly instalments (as applicable). However, minimum retention requirement (MRR) for such securitisation/assignment transactions shall be 20% of the book value of the loans being securitised/20% of the cash flows from the assets assigned. The above dispensation shall be applicable to securitisation/assignment transactions carried out during a period of six months from the date of issuance of this circular. Other terms and conditions of the above referred directions remain the same, RBI said.

Overseas, European stocks were trading lower, while Asian markets were mixed as key leaders congregated for a major event in Argentina. Leaders from around the globe are set to discuss key issues during this two-day G-20 summit, with many investors paying close attention to two leaders in particular: President Donald Trump and China's President Xi Jinping.ss

In Asia, growth in China's services industry slowed for the second straight month in November, an official survey showed. The official non-manufacturing Purchasing Managers' Index (PMI) released on Friday fell to 53.4 from 53.9 in October, but remained well above the 50-point mark that separates growth from contraction.

Growth in China's manufacturing sector stalled for the first time in over two years in November. The official Purchasing Managers' Index (PMI) fell to 50.0 in November from 50.2 in October, data showed on Friday. The 50-point mark is considered neutral territory, indicating no growth in activity or contraction on a monthly basis.

US stocks reversed direction to close lower Thursday as investors' attention shifted to a weekend meeting between President Donald Trump and Chinese President Xi Jinping.

Speaking to the media, Trump said he was "close to doing something with China" but that he wasn't sure he wanted to, citing revenue from tariffs on Chinese imports. Trump on Thursday tweeted that "billions of dollars" are pouring into the US Treasury from tariffs and that there is "a long way to go."

On the US data front, the number of Americans who applied for unemployment benefits last week rose to 234,000, their highest level in six months, according to the Labor Department.

The Commerce Department reported that consumer spending in October rose by 0.6%, while income rose by 0.5%. The same release showed personal-consumption expenditures, the Fed's preferred measure of inflation, right at the central bank's target of 2% year-over-year.

The National Association of Realtors reported that US pending home sales slid 2.6% in October from September, to their lowest level since June 2014.

Powered by Capital Market - Live News