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Indices turn almost flat; metal stocks slide

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Key indices pared gains and traded near the flat line in mid-morning trade. Metal stocks were under pressure after Trump said trade deal with China may be delayed. The Nifty traded below its crucial 12,000 mark.

At 11:31 IST, the barometer index, the S&P BSE Sensex, was down 4.76 points or 0.01% at 40,670.69. The Nifty 50 index was up 1.3 points or 0.01% at 11,995.50.

The S&P BSE Mid-Cap index was up 0.14%. The S&P BSE Small-Cap index was down 0.03%.

The market breadth once again turned negative from positive. On the BSE, 975 shares rose and 994 shares fell. A total of 153 shares were unchanged. In Nifty 50 index, 27 stocks advanced while 23 stocks declined.

Economy:

Global credit rating agency Standard & Poor's has reaffirmed India's sovereign rating at 'BBB-' with stable outlook. S&P further added that India's economy continues to achieve impressive long term growth rates despite a recent deceleration. The economic slowdown is cyclical rather than structural. Furthermore, S&P expects the economy to outperform its peers on the back of rising domestic demand and strong demographics.

The IHS Markit India Services Business Activity Index grew 52.7 in November from 49.2 in October, signalling output growth for the first time in three months. The upturn was associated with a pick-up in demand, improved technology and rising client numbers. That said, the headline figure remained below its long-run average of 54.2.

Buzzing Index:

Metal stocks extended recent fall after U.S. President Donald Trump said overnight that he may delay a trade deal with China till after the 2020 presidential election.

The Nifty Metal index was down 0.94% at 2,540.20. JSW Steel (down 2.35%), Tata Steel (down 1.94%), Jindal Steel & Power (down 1.47%), Hindalco Industries (down 0.69%), National Aluminium Company (down 0.58%), Steel Authority of India (down 0.53%), Hindustan Copper (down 0.25%) and Vedanta (down 0.2%) were top losers in metal segment.

Stocks in Spotlight:

Bajaj Finance advanced 0.33% to Rs 3980.40 after the Securities Appellate Tribunal (SAT) asked the Securities and Exchange Board of India (Sebi) to hear the company's plea. SAT on Tuesday suspended the transfer of shares from the depository account of Karvy Stock Broking (KSBL) and directed Sebi's whole-time director to hear Bajaj Finance's grievances, which had challenged the market regulator's share-shift order. Bajaj Finance said that its current exposure to KSBL as at 2 December 2019 is approximately Rs 312 crore, which was against the pledge of listed shares. The matter is sub-judice and the company will continue to pursue its legal and legitimate rights. The aforesaid does not in any manner impact the rest of the company's loan against securities business, Bajaj Finance said in a statement. The announcement was made post trading hours yesterday, 3 December 2019.

Strides Pharma Science announced that the company has received a tentative USFDA approval for Diclofenac Potassium softgel capsules. Diclofenac Potassium softgel capsules are used in the treatment of postbunionectomy pain. According to IQVIA MAT data, the US market for Diclofenac Potassium softgel capsules is approximately $30 million. The company further said that the product will be manufactured at the company's Oral dosage facility at Bangalore after getting a full approval.

Shares of Strides Pharma Sciences were trading 0.89% higher at Rs 380.50.

Foreign Markets:

Overseas, Asian markets were trading lower on Wednesday after an overnight fall in US stocks. US stocks fell on Tuesday after President Donald Trump reportedly said it may take until after the 2020 US elections to complete a trade deal with China.

Trade tensions escalated on other fronts, including Brazil, Argentina and France after Trump said he was bringing back tariffs on Brazilian and Argentinian steel, while the administration also proposed tariffs of up to 100% on $2.4 billion in French imports.

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

First Published: Wed, December 04 2019. 11:34 IST
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