Market snaps four-day winning streak

Key indices settled with small losses after a rangebound and lackluster session of trade as profit booking emerged after market hit record high. Weakness in global stocks weighed on sentiment. The barometer index, the S&P BSE Sensex, fell 48.90 points or 0.14% at 33,787.84, as per the provisional closing basis. The Nifty 50 index dropped 17.85 points or 0.17% at 10,445.35, as per the provisional closing basis.

The movement of indices was restricted within a small range around the flat line throughout the session. Realty stocks jumped. Auto and bank stocks dropped. Indices snapped four-day winning streak today, 20 December 2017.

The market swung between gains and losses near the flat line in early trade. The Sensex and Nifty, both, hit record high at the onset of the session. Stocks soon slipped into the red and traded with small losses in morning trade. Indices turned positive in mid-morning trade and traded with small gains till mid-afternoon trade. Stocks once again slipped into the red in late trade.

The Sensex gained 119.57 points or 0.35% at the day's high of 33,956.31 in early trade, its record high. The index fell 81.80 points or 0.24% at the day's low of 33,754.94 in late trade. The Nifty gained 31.25 points or 0.3% at the day's high of 10,494.45 in early trade, its record high. The index dropped 26.05 points or 0.24% at the day's low of 10,437.15 in late trade.

Among secondary indices, the S&P BSE Mid-Cap index provisionally rose 0.36%. The S&P BSE Small-Cap index provisionally gained 0.79%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1588 shares rose and 1,125 shares fell. A total of 174 shares were unchanged.

Realty stocks extended recent gains. DLF (up 4.55%), D B Realty (up 5.04%), Sobha (up 0.9%), Indiabulls Real Estate (up 6.07%), Unitech (up 5.79%), NBCC (up 0.36%), Housing Development & Infrastructure (HDIL) (up 5.27%), and Oberoi Realty (up 0.41%) edged higher. Godrej Properties declined 0.31%.

Bank of India fell 3.92% after the bank said that the Reserve Bank of India has placed the bank under prompt corrective action framework. The announcement was made during trading hours today, 20 December 2017.

The Reserve Bank of India vide their letter dated 19 December 2017, has placed Bank of India under Prompt Corrective Action (PCA) framework, consequent to the onsite inspection under the risk based supervision model carried out for year ended March 2017, and the report issued thereof. This is in view of high net non-performing assets (NPA), insufficient common equity Tier 1 (CET1) capital and negative return on assets (RoA) for two consequent years. This action will contribute to the overall improvement in risk management, asset quality, profitability, efficiency, etc of the bank.

Amara Raja Batteries rose 3.43% after the company said it commissioned two-wheeler battery plant in Chittoor, Andhra Pradesh. The announcement was made during trading hours today, 20 December 2017.

Amara Raja Batteries said that the first phase of the plant which was commissioned will have a capacity of 5 million units. The plant will have an ultimate capacity of 17 million units with an estimated investment of Rs 700 crore taking the total capacity for two-wheeler batteries to 29 million units. The plant will employ 1,300 people at full capacity.

Meanwhile, the Companies (Amendment) Bill, 2017 which seeks to bring about major changes in the Companies Act, 2013, was passed by the Rajya Sabha yesterday, 19 December 2017 by a voice vote. The bill, which was adopted by the Lok Sabha in July, will now have to receive the assent of the President to become law. The amendment seeks to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve ease of doing business in the country.

Overseas, European and Asian stocks dropped even as Senate passed Republican tax bill in 51-48 vote sending the tax cut package back to the House of Representatives for a final vote later in the day.

US stocks ended with modest losses yesterday, 19 December 2017, pulling back from all-time highs. Stocks remained lower as the House of Representatives, as expected, passed tax legislation that would slash corporate rates but will have to vote again today because the current draft doesn't comply with Senate rules.

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