Key benchmark indices sharply pared losses in early afternoon trade. The Nifty was trading near 12,000 level. At 12:33 IST, the barometer index, the S&P BSE Sensex, was down 34.07 points or 0.08% at 40,619.67. The Nifty 50 index was down 17.6 points or 0.15% at 11,994.45.
In broader market, the S&P BSE Mid-Cap index was up 0.17%. The S&P BSE Small-Cap index was up 0.18%. Both these indices outperformed the Sensex.
The market breadth was negative. On the BSE, 1087 shares rose and 1130 shares fell. A total of 154 shares were unchanged. In Nifty 50 index, 17 stocks advanced while 33 stocks declined.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.95% to 15.6575. The Nifty November 2019 futures were trading at 12,006.70, a premium of 20.75 points compared with the spot at 11,985.95. The November 2019 F&O contracts expire on 28 November 2019.
On the options front, the Nifty option chain for 28 November 2019 expiry showed maximum call open interest (OI) of 19.50 lakh contracts at the 12,000 strike price. Maximum put OI of 19.82 lakh contracts was seen at 11,600 strike price. The option chain indicates that Nifty will stay between 11,600 and 12,000 in November expiry.
Stocks in Spotlight:
Shares of Bharat Forge were down 2.97% at Rs 455.40. The company reported 19.5% jump in consolidated net profit to Rs 206.9 crore on a 7.3% decline in total revenues to Rs 2,158.1 crore in Q2 September 2019 over Q2 September 2018. The company's EBIDTA stood at Rs 317.6 crore in Q2 September 2019, declining 23.4% from 414.8 crore in Q1 June 2019 and falling 43.4% from Rs 561.4 crore in Q2 September 2018. The stock tumbled after the company reported that earnings in H2 FY20 will be lower than H1 FY20. Q2 earnings came during market hours today.
Raymond rallied 17.86% to Rs 794 after the company announced the demerger of its core lifestyle business into a separate entity that will be listed through mirror shareholding structure. Every shareholder of Raymond will be issued the shares of the new company in the ratio of 1:1. The move will create a clear demarcation of lifestyle & other businesses leading to the simplification of the group structure. Demerger will unlock the potential of the core lifestyle business through a new listed company with existing business of branded textile, branded apparel & garmenting. Existing company will retain real estate project, Thane land bank, B2B shirting business, engineering businesses of auto components and tools & hardware, denim and FMCG business.
In another development, Raymond announced the allotment of equity shares and compulsorily convertible preference shares (CCPS) to J. K. Investo Trade (India) (JKIT), an associate company, against the infusion of net proceeds of JKIT land sale that was announced in October 2019. A total of Rs 350 crore will be used to repay the debt thus deleveraging the balance sheet of Raymond.
Reliance Home Finance declined 2.52% to Rs 6.50 on profit booking. The stock soared 101.26% in the past fifteen trading sessions to settle at Rs 6.34 on 7 November 2019, from its previous closing low of Rs 3.15 on 16 October 2019. National Housing Bank (NHB) has imposed a penalty of Rs 45,000 on the company for contravention of certain provisions of Housing Finance Companies (NHB) Directions, 2010 after market hours yesterday.
Credit rating agency Moody's lowered nation's outlook to negative from stable, while retaining the issuer rating at Baa2. The rating agency said its decision to change the outlook to negative reflects increasing risks that economic growth will remain materially lower than in the past, partly reflecting lower government and policy effectiveness at addressing long-standing economic and institutional weaknesses, leading to a gradual rise in the debt burden from already high levels. Moody's cited a growing debt burden and the government's struggle to narrow the budget deficit.
Finance Minister Nirmala Sitharaman on Thursday chaired a meeting with members of the Financial Stability and Development Council (FSDC). The FSDC is an apex-level body constituted, with an aim to strengthen and institutionalise the mechanism of maintaining financial stability and financial sector development among others, by the government of India with the finance minister as its head.
The body also includes the Reserve Bank of India (RBI) governor and chairpersons of the Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA) as its members along with finance ministry officials. The last meeting of the FSDC was held on June 19, in which the global and domestic economic situation and financial stability issues including, inter-alia, those concerning banking and NBFCs were reviewed among others.
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