Market slides for 3rd session

The benchmark indices ended lower for third consecutive session on Thursday, dragged by heavyweights like Reliance Industries, HDFC Bank, Larsen and Toubro and Bharti Airtel. Trading was volatile as December F&O contracts expired today.

Investors locked profits in frontline stocks after a recent rally, which propelled key barometers to record high levels. An improving outlook on the global economy and optimism surrounding US-China trade deal had sent domestic equities to an all-time high last week.

The barometer index, the BSE Sensex, fell 297.50 points or 0.72% to 41,163.76, as per the provisional closing data. The Nifty 50 index lost 88 points or 0.72% to 12,126.55, as per the provisional closing data.

In the broader market, the S&P BSE Mid-Cap index fell 0.13% while the S&P BSE Small-Cap index rose 0.38%. The broader markets managed to outperform the benchmark indices.

The market breadth was positive. On BSE, 1326 shares advanced while 1194 shares declined. A total of 175 shares were unchanged. In Nifty 50 index, 17 stocks advanced and 33 stocks declined.

Buzzing Sector:

Auto ancillary stocks were in demand. Rane Engine Valve (up 19.99%), Rane (Madras) (up 19.98%), Rane Brake Lining (up 17.74%), Rane Holdings (up 18.75%), Sterling Tools (up 12.60%), Z.F Steering Gear (up 11.94%), Lumax Auto Technologies (up 8.94%), Minda Corporation (up 6.32%), Mahindra CIE Automotive (up 5.76%), GNA Axles (up 4.24%), Automotive Axles (up 3.72%), Munjal Showa (up 1.05%), Steel Strip Wheels (up 0.67%), Subros (up 0.31%) and Minda Industries (up 0.23%) advanced.

Stocks in Spotlight:

Bharti Infratel rose 0.22% to Rs 255.85. The company on Tuesday (24 December) said it has not received government approvals for its merger with Indus Towers, by the 24 December 2019 deadline, and hence it has extended the deadline for closing the deal to 24 February 2020.

Yes Bank declined 4.98% to Rs 48.65 after a foreign brokerage reportedly cut its target price on the stock to Rs 46 from Rs 50 earlier. The brokerage also slashed the FY20 and FY21 profit estimate for the lender by 4-5%.

On Tuesday, Brickwork Ratings downgraded its ratings on Yes Bank's lower tier II bonds, from BWR AA- to BWR A, and of upper tier II bonds, hybrid tier I bonds and innovative perpetual debt instruments from BWR A+ to BWR A-. The outlook to continue as negative.

Bharti Airtel slipped 2.04% to Rs 448. The company said Airtel Africa intends to raise about $37.5 million through a public issue of its local business, Airtel Malawi. The price for the IPO has been set at Malawian Kwacha (MK) 12.69 ($0.021) per ordinary share.

Dishman Carbogen Amcis hit 10% upper circuit at Rs 79.30, snapping its six-day losing streak. The stock tanked 42.78% in six trading days from its previous closing high of Rs 126 on 16 December 2019.

The income tax (I-T) officials visited the company's offices and manufacturing sites on 19 December 2019 in connection with search under Section 142 of the Income-Tax Act. The company extended full co-operation to the officials during the search and provided all the information sought. The search operation concluded on 25 December 2019.

Eveready Industries India surged 6.58% to Rs 57.50 after Delhi High Court allowed the firm to go ahead with the sale of its property in Hyderabad. In August 2019, Eveready Industries concluded an agreement with Nuland Technologies, for sale of its land in Hyderabad for a consideration of Rs 100 crore.

SML Isuzu jumped 7.89% to Rs 592. ICRA has revised the long term rating from [ICRA AA] (Stable) to [ICRA AA-] (Negative) and reaffirmed the short term rating of the company at [ICRA A1+]. The rating agency cited slowdown in the commercial vehicle (CV) industry, which is likely to persist in the near-term given the slowing economic growth, surplus capacity in the trucking system and credit crunch as the reason for the said rating.

MOIL rose 0.39% to Rs 142. The Rs 308-crore buyback offer from MOIL opened for subscription today and will end on 8 January 2019. The PSU major is offering Rs 152 a share to buy back about 2.03 crore shares, representing 7.87% of the equity capital, from all the existing shareholders on a proportionate basis through the tender offer route.

Dai-Ichi Karkaria hit 5% upper circuit at Rs 291.80. The company has entered into a memorandum of understanding (MOU), for sale of its land parcel of its undertaking situated in Pune. The deal is valued at Rs 158.25 crore. The unit was closed on 25 Jan 2019. The firm has shifted its operations to Dahej, Gujarat.

NTPC rose 1.09% to Rs 116.40. As per reports, the company is planning to add 10GW of solar energy generation capacity by 2022, which entails an investment of around Rs 50,000 crore, to be funded mainly by green bond.

Shares of Hexaware Technologies (down 3.15%), Tata Elxsi (down 3.55%) and Union Bank of India (down 6.94%) will be excluded from futures and options trading from tomorrow.

Foreign Markets:

Asian markets ended mostly higher on Thursday, a day after Christmas. Major markets across the region including Hong Kong, South Korea and Australia were closed on Wednesday for Christmas.

European stocks markets were closed on account of 'Boxing Day', a secular holiday traditionally celebrated on 26 December, the day after Christmas Day.

In US, stocks ended nearly flat on Tuesday in a shortened trading session before closing for Christmas Day. US markets will reopen on Thursday.

Investors have been encouraged by plans for an interim US-Chinese trade deal despite having seen few details.

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