Indices trade near flat line; telecom stocks tumble

Indices traded sideways with marginal losses in morning trade. The Nifty was trading above 11,800 level. Indices may witness volatility due to expiry of weekly option contracts. At 10:26 IST, the barometer index, the S&P BSE Sensex, was down 46.16 points or 0.12% at 40,069.90. The Nifty 50 index was down 26.7 points or 0.23% at 11,813.75.

The broader market was trading flat. The S&P BSE Mid-Cap index was down 0.02%. The S&P BSE Small-Cap index was down 0.06%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 767 shares rose and 990 shares fell. A total of 102 shares were unchanged. In Nifty 50 index, 22 stocks advanced while 28 stocks declined.

Domestic Macro

The all-India general consumer price index (CPI) inflation jumped to 4.62% in October 2019 (new base 2012=100), compared with 3.99% in September 2019. The corresponding provisional inflation rate for rural area was 4.29% and urban area 5.11% in October 2019 as against 3.24% and 4.78% in September 2019. However, the core CPI inflation eased to 3.44% in October 2019 compared with 3.99% in September 2019.

The Government will announce Wholesale Price Inflation (WPI) for October 2019 today.

Buzzing Index:

Telecom stocks fell after media reported suggested that the department of telecommunications (DoT) has issued a notice to telecom operators to pay their adjusted gross revenue (AGR) dues within three months as directed by the Supreme Court. The Supreme Court (SC) on 24 October 2019 ruled in favor of the government on the AGR (adjusted gross revenue) issue, with grave revenue implications to the tune of over Rs 92,000 crore for the ailing telecom sector.

Bharti Airtel was trading 3.08% lower at Rs 357.15. The telecom operator will be in focus as it will announce its Q2 2019 earnings today. Vodafone Idea was trading 16.76% down at Rs 3.08. Bharti Infratel slumped 7.05% to Rs 202.95

Stocks in Spotlight:

Grasim Industries (up 1.78%), ONGC (down 0.76%) and Vedanta (down 0.61%) are Nifty companies that will announce their Q2 2019 earnings today.

MOIL (down 0.03%), Mphasis (down 0.39%), PNC Infratech (up 0.6%), India Tourism Development Corporation (up 0.54%), Majesco (down 0.78%), Endurance Technologies (down 1.95%), Balkrishna Industries (up 0.76%), Glenmark Pharmaceuticals (down 0.16%), HEG (down 1.88%), SAIL (up 0.13%), Minda Industries (up 2.05%) and Hindustan Copper (down 1.28%) are some of the companies that will announce their Q2 2019 earnings today.

SpiceJet reported a consolidated net loss of Rs 461.21 crore in Q2 September 2019 as against a net loss of Rs 382.71 crore in Q2 September 2018. Revenue from operations for quarter ending September 2019 jumped by 51% to Rs 2848 crore on YoY basis. The company reasoned dismal Q2 results on the back of inflated costs with respect to grounding of Boeing 737 MAX and change in accounting standard.

Shares of SpiceJet were trading 4.35% lower at Rs 108.75.

Indian Railway Catering and Tourism Corporation (IRCTC) announced its first ever quarterly result after getting listed on exchanges on 14 October 2019. IRCTC's net profit rose 14.01% to Rs 172.15 crore on 3.77% rise in net sales to Rs 972.61 crore in H1FY2020 over H1FY2019. The result was declared after market hours yesterday, 13 November 2019.

Shares of IRCTC were trading 0.85% lower at Rs 923.9.

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