Nifty trades below 11,900; FMCG stocks slide

Key benchmarks pared early gains and traded near flat line in morning trade. The Nifty failed to hold the 11,900 mark and it slipped below that level. At 10:22 IST, the barometer index, the S&P BSE Sensex, was down 43.06 points or 0.11% at 40,313.63. The Nifty 50 index was down 7.3 points or 0.06% at 11,888.15.

The broader market was flat and in line with benchmark index. The S&P BSE Mid-Cap index was up 0.19%. The S&P BSE Small-Cap index was up 0.05%.

The market breadth was positive. On the BSE, 978 shares rose and 931 shares fell. A total of 128 shares were unchanged. In Nifty 50 index, 23 stocks advanced while 27 stocks declined.

Domestic Macro:

India's services exports rose 7.1% in September 2019. As per the data released by the Reserve Bank of India, India's services exports increased 7.1% to US$ 17.54 billion in September 2019 over September 2018. Meanwhile, India's services imports jumped 11.5% to US$ 11.10 billion in September 2019.

Buzzing Index:

The Nifty FMCG index was down 0.48% at 31,138.35, extending its losing streak for sixth consecutive session. The index has lost 4.30% in six trading days from its previous closing high of 32,535.90 on 7 November 2019.

Bajaj Consumer Care (down 1.45%), Jubilant FoodWorks (down 1.24%), Britannia Industires (down 0.93%), Dabur India (down 0.64%), Marico (down 0.55%), ITC (down 0.52%), Nestle India (down 0.45%), GlaxoSmithkline Consumer Healthcare (down 0.36%), Hindustan Unilever (down 0.35%) and Godrej Consumer Products (down 0.17%) were top losers in FMCG segment.

Stocks in Spotlight:

Just Dial was up 5.85%. The stock is in a ban period after crossing 95% of market wide position limit in F&O segment of NSE.

Bharat Petroleum Corporation advanced 2.93% to Rs 520.70 after Finance Minister Nirmala Sitharaman reportedly said that the government would wrap up the sale of Air India and BPCL by March 2020. As per reports, the finance minister said, "We are moving on both with the expectation that we can complete them this year. The ground realities will play out", while referring to the strategic sale of the two state-run companies, a crucial part of the government's plan to raise over Rs 1 lakh crore in the current fiscal year. Sitharaman also said there is a "lot of interest" among investors about the sale of Air India as seen in the international roadshows carried out by the Government, the reports added.

Shares of Adani Transmission were trading 0.46% lower at Rs 267.70. Adani Transmission announced that it has approved the issuance of Fixed Rate Senior Secured Notes (the Notes) aggregating to $500 million. The company intends to use the proceeds for refinancing existing indebtedness. The company has received Baa3 (Stable) by Moody's, BBB- (Stable) by S&P and BBB- (Stable) by Fitch for the Notes.

Glenmark Pharmaceuticals jumped 7.9% to Rs 325 after a foreign brokerage upgraded the stock to 'buy' from 'sell'. The foreign brokerage house has also hiked price target to Rs 410 from Rs 350 backed by attractive valuation after Q2 2019 earnings and strong business in USA on QoQ basis.

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