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Barometers jump in fag-end rally; telcos surge

Capital Market 

The benchmark indices ended with decent gains after a volatile session on Tuesday. Media updates on the PSU disinvestment front led to heavy buying momentum in the last hour of trade. Telecom shares shot up on proposals to raise tariffs from December. Bharti Airtel hit 52-week high. Index heavyweight Reliance Industries hit a record high.

The barometer index, the BSE Sensex, rose 185.51 points or 0.46% to 40,469.70. The Nifty 50 index rose 55.60 points or 0.47% to 11,940.10.

In the broader market, the S&P BSE Mid-Cap index fell 0.05% while the S&P BSE Small-Cap index rose 0.31%.

The market breadth was negative. On the BSE, 1158 shares rose and 1385 shares fell. A total of 189 shares were unchanged.

Media reports suggested that the proposal to lower government stake in the public sector units (PSUs) below 51% may come up in the next cabinet meeting. The group of ministers (GoM) on divestment are likely to approve a list of PSUs where the government's stake will go below 51%.

Crude & Currency:

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 71.795, compared with its close of 71.845 during the previous trading session.

In the commodities market, Brent crude for January 2020 settlement was fell 38 cents at $62.06 a barrel. The contract fell $1.16 or 1.83% to settle at $62.26 a barrel during the previous trading session.

Overseas:

European stocks edged higher while Asian stocks ended mixed on Tuesday as investors awaited clarity on the progress of trade negotiations between the two major economies.

US stocks eked out fresh all-time highs on Monday, notching slight gains as progress toward a so-called phase-one US-China trade agreement remained elusive.

The Trump administration on Monday issued a 90-day extension of a license allowing US companies to continue doing business with Chinese telecom giant Huawei Technologies Co.

Chinese Vice Premier Liu He, the country's top trade negotiator, reportedly held a phone conversation with U.S. Trade Rep. Robert Lighthizer and Treasury Secretary Steven Mnuchin on Saturday, describing the discussions as constructive.

Buzzing Index:

The Nifty Auto index fell 0.68% to 8,063.95, extending decline for third straight session. The index has fallen 1.55% in three sessions from a recent closing high of 8,190.90 on 14 November 2019.

Mahindra & Mahindra (down 2.19%), Tata Motors (down 1.35%), Hero MotoCorp (down 1.06%), TVS Motor Company (down 0.96%), Maruti Suzuki India (down 0.78%) and Ashok Leyland (down 0.24%) declined.

While Eicher Motors, Escorts and Bajaj Auto rose by between 0.34% to 1.41%.

The Federation of Automobile Dealers Associations (FADA) disclosed that vehicle registrations in October showed a positive momentum due to festivals. Attractive offers boosted the overall positive mood of the buyer.

Vehicles registrations rose by 4% to 17,09,610 units in October 2019 as against 16,38,832 units in October 2018. 2-wheeler registration was up by 5% while 3-wheeler registration was up by 4% on YoY basis.

Commercial Vehicle segment continued to witness a slow down as registration in October 2019 fell by 23% to 67,060 units on YoY basis.

FADA continues its recommendation to its members to tread with caution, especially with regards to inventory and costs during this dynamic time of fluctuating consumer sentiment due to overall weak economic situation and BS6 transition. FADA will also continue to engage with all the stakeholders for a smooth transition into the BS6 Regime for its members.

The Nifty FMCG index fell 0.62% to 30,972.95, extending losses for seventh straight session. The index has fallen 4.8% in seven sessions from a recent closing high of 32,535.90 on 7 November 2019.

Among the sectoral components, Godrej Consumer Products (down 1.8%), Procter & Gamble Hygiene and Health Care (down 1.17%), Tata Global Beverages (down 0.97%), Hindustan Unilever (down 0.96%), GlaxoSmithKline Consumer Healthcare (down 0.72%), Colgate-Palmolive (India) (down 0.63%), Britannia Industries (down 0.5%) and Dabur India (down 0.18%) declined.

Marico, Bajaj Consumer Care and Nestle India advanced by between 0.18% to 0.56%.

The BSE Telecom index surged 8.52% to 1,082.63. Telecom major Bharti Airtel advanced 7.36% to Rs 439.25. The scrip hit 52-week high of Rs 445.45 in intraday today.

In an exchange filing, Bharti Airtel said that it will appropriately increase price offerings in December 2019. While continuing to provide affordable tariffs to customers, it would balance the needs of the company to remain viable and thereby continue to invest in the much needed digital infrastructure and maintain the quality standards required by its customers.

Vodafone Idea spurted 34.68% to Rs 6.02. The company reiterated its commitment to play its due role in realising the vision of Digital India by continuing to provide seamless mobile services to customers across India. To ensure that its customers continue to enjoy world class digital experiences, Vodafone Idea will suitably increase the prices of its tariffs effective 1 December 2019.

Index pivotal Reliance Industries (RIL), which controls Reliance Jio Infocomm, rose 3.52% at Rs 1509.80. It hit a record high of Rs 1514.95 in intraday today.

Stocks in Spotlight:

Tata Steel fell 2.02% to Rs 401.90. Tata Steel outlined proposals for a transformation programme in Europe. The programme is focused on improving financial performance by increasing sales of higher-value steels, efficiency gains by optimising production processes, lowering employment costs, and reduction of procurement costs.

TCS declined 2.02% to Rs 2108.30. TCS announced the setting up of a new Microsoft Business Unit (MBU). Offering a full complement of services and solutions around Microsoft technologies, and catering to all stakeholders in the enterprise, the new unit will work with customers worldwide to accelerate their Business 4.0 transformation journeys.

TCS in a seperate exchange filing said that it has expanded its partnership with Virgin Atlantic for creating and innovating new customer experience.

Accelya Solutions India surged 11.80% to Rs 1195.50 after the company announced that it is being acquired by Vista Equity Partners (Vista), a leading investment firm focused on enterprise software, data and technology-enabled businesses.

Zee Entertainment Enterprises slipped 2.82% to Rs 285.75 after credit rating agency, Brickwork Ratings, downgraded the firm's 6% cumulative redeemable non-convertible preference shares and issuer rating to 'BWR AA+' from 'BWR AAA', with outlook as "credit watch with negative implications".

Siemens rose 1.53% to 1576.90, ahead of its Q4 earnings today.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 19 2019. 17:00 IST
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