Indices slip in early trade

Key indices were trading lower on selective selling pressure in index pivotals. At 9:19 IST, the barometer index, the S&P BSE Sensex, was down 124.91 points or 0.30% at 41,501.73. The Nifty 50 index was down 40.55 points or 0.33% at 12,241.65.

The S&P BSE Mid-Cap index was down 0.12%. The S&P BSE Small-Cap index was up 0.04%. Both these indices outperformed the BSE Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 476 shares rose and 486 shares fell. A total of 52 shares were unchanged.

Among stocks, Housing Development Finance Corporation fell 0.36%. Housing Development Finance Corporation (HDFC) said that it has recorded a fair value gain of Rs 9,020 crore from Gruh Finance and Bandhan Bank merger. Income from dividend was at Rs 4 crore in December 2019 quarter compared to Rs 2 crore in December 2018 quarter. During the quarter, HFDC assigned loans amounting to Rs 4,258 crore compared to Rs 6,959 crore in December 2018 quarter.

Hero MotoCorp was up 0.03%. Hero MotoCorp said it sold 424,845 units of two-wheelers in December 2019, as compared to 453,985 units in the corresponding month of the previous year (December 2018), a decline of 6.42%. In the first three quarters of the Financial Year 2020 the company sold 50,75,208 units of motorcycle and scooters compared to 60,39,585 units.

Natco Pharma was down 0.92%. Natco Pharma announced its submission of an Abbreviated New Drug Application (ANDA) with the US Food and Drug Administration (FDA) for the generic version of Lonsurf (Trifluridine/ Tipiracil) tablets (15mg/6.14mg and 20mg/8.19mg). NATCO believes that it is one of the first ANDA filers for the product and could be eligible for 180 days exclusivity under certain circumstances.

RITES advanced 0.85%. RITES said it has secured a major work of project Management Consultancy from the Government of Bangladesh amounting to $ 14.01 Million (Rs 99.94 crore) in relation to 4 laning of National Highway in Bangladesh. RITES is a lead partner in the JV arrangement and will receive $ 10.88 Million (Rs 77.57 crore) out of the total consultancy fee of $ 14.01 Million (Rs 99.94 crore). Amount is inclusive of taxes.

JSW Energy rose 1.15%. JSW Energy said the company entered into an agreement with Jaiprakash Power Ventures (JPVL) to re-structure the principal outstanding amount of Rs 751.77 crore, owed by JPVL to the company. According to the agreement, Rs 351.77 crore will be converted into equity shares of JPVL. Out of the balance outstanding principal amount of Rs 400 crore, Rs 280 crore to be written off and Rs 120 crore will continue as debt to be paid by JPVL.

Overseas, most Asian markets were trading higher as Wall Street sailed to an all-time high overnight.

In US, stock indexes closed at new record highs on the first trading day of 2020 after a move by China's central bank aimed at stimulating the country's economy.

On economic front, the number of people applying for first-time jobless benefits in the week ended 28 December slipped to 222,000.

The US IHS Markit manufacturing purchasing managers final index for December slipped to 52.4 below the 52.6 reading notched in November.

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