Market slips in volatile early trade

A bout of volatility was seen in early trade as the key indices moved above and below the flat line in a small range. At 9:22 IST, the barometer index, the S&P BSE Sensex, was down 33.33 points or 0.08% at 40,618.31. The Nifty 50 index was down 7.35 points or 0.06% at 11,991.75.

The S&P BSE Mid-Cap index was down 0.1%. The S&P BSE Small-Cap index was up 0.09%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 512 shares rose and 489 shares fell. A total of 56 shares were unchanged.

The Cabinet Committee on Economic Affairs yesterday, 20 November 2019 accorded 'In-principle' approval for strategic disinvestment in select CPSEs including Bharat Petroleum Corporation (BPCL), Shipping Corporation of India (SCI), Container Corporation of India, Tehri Hydro Development Corporation India and North Eastern Electric Power Corporation.

The Union Cabinet yesterday, 20 November 2019 also approved the proposal for Mitigating financial stress being faced by the Telecom Services Sector. Department of Telecommunication will give an option to the Telecom Service Providers (TSPs) to defer payment of the spectrum auction instalments due for 2020-21 & 2021-22, either for one or both years. The decision for deferring spectrum payment instalments for two years will be implemented within a fortnight.

Among stocks, shares of Zee Entertainment Enterprises (ZEEL) surged 7.8%. The Essel Group (Group) is planning to sell about 16.5% stake in ZEEL to financial investors in order to repay loan obligations to certain lenders of the group for whose benefit such shares are currently encumbered. Out of the aforesaid the group seeks to sell about 2.3% stake in ZEEL to OFI Global China Fund, LLC and/or its affiliates. Pursuant to the aforementioned transactions, the post-transaction overall holdings of the Group in ZEEL will be about 5%, out of which encumbered holdings of the Group will reduce to about 1.1% of ZEEL.

Oil India (OIL) fell 1.77%. OIL announced the commencement of exploration activities including seismic survey data acquisition in Rajasthan's Siyasar block RJ-ONHP-2017/9 won under OALP-I round. The block falls under Bikaner and Ganganagar District of Rajasthan. With this, OIL becomes the first operator to begin the exploration activities under the committed work programme (CWP) in an OALP regime block in the country.

Reliance Capital dropped 4.99%. The Delhi High Court has passed an order placing restrictions on any sale, disposal or creation of any encumbrance on any assets of the company, which inter-alia include the company's 4.28% shareholding in Reliance Nippon Life Asset Management, till 16 December 2019.

Great Eastern Shipping Company rose 1.25% after the company has contracted to sell its 2000 built Suezmax Crude Carrier Jag Lakshita of about 147,092 dwt. The vessel will be delivered to the new buyer in Q3 FY 2019-20.

Overseas, Asian stocks were trading lower Thursday amid concerns 'phase one' US-China trade deal may not be signed in 2019 as China seeks more extensive tariff rollbacks.

U.S. stocks ended lower Wednesday after a report that a trade deal might not be completed this year and after China condemned a U.S. Senate resolution supporting human rights in Hong Kong.

Minutes of the October meeting of the Federal Reserve's interest-rate-setting committee suggested the bank will not likely change interest rates soon.

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