Key equity barometers slipped into negative terrain in afternoon trade. At 12:27 IST, the barometer index, the S&P BSE Sensex, was up 72.88 points or 0.18% at 40,720.93. The Nifty 50 index was down 26.80 points or 0.22% at 12,029.25.
Weak macro numbers, lower than expected auto sales and continuous profit booking weighed on the indices. Investors were also cautious ahead of the central bank's monetary policy meeting on Thursday, 5 December 2019.
The broader market underperformed the benchmark index. The S&P BSE Mid-Cap index was down 0.85%. The S&P BSE Small-Cap index was down 0.45%.
The market breadth favored the sellers. On the BSE, 927 shares rose and 1392 shares fell. A total of 186 shares were unchanged. In Nifty 50 index, 16 stocks advanced while 34 stocks declined.
IHS Markit announced Purchasing Managers' Index (PMI) numbers for India. PMI is an economic indicator derived from monthly surveys of private sector companies. The headline seasonally adjusted IHS Markit India Manufacturing PMI rose to 51.2 in November from 50.6 in October, when it had fallen to a two-year low. The latest reading was below the survey average (53.8) and indicated only a slight improvement in the health of the sector. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease.
India's (GDP) grew by 4.5% in Q2 September 2019, the lowest since Q4 March 2013. Gross value added (GVA), which is GDP minus taxes, grew 4.3% in Q2 September 2019, compared to 4.9% in Q1 June 2019 and 6.9% in Q2 September 2018. The farm sector grew 2.1% while the manufacturing sector de-grew by 1% in July-September 2019.
The Eight Core Industries, carrying 40.27% weight in the Index of Industrial Production (IIP), recorded 5.8% decline in the output for October 2019 over October 2018. Its cumulative output rose mere 0.2% in April-October 2019-20.
The Reserve Bank of India's (RBI) monetary policy committee (MPC) will meet between 3rd and 5th December 2019 to review the interest rates.
Commenting on the GDP, Sandip Somany, President, FICCI said, "While the further dip in GDP growth is a matter of concern, it was not entirely unexpected as many of the lead indicators of economic activity were showing signs of weakness. Private consumption and investment demand continue to remain weak although some improvement was noticed during the recent festive season."
"The singular agenda for the government and RBI in the coming months should be revival of the economy. We expect greater stimulus and counter-cyclical measures from the government and further easing of the monetary policy by the central bank. Additionally, there is a need to look at some stronger measures to ease the log-jam in sectors like housing and real estate, NBFCs, telecom and automobiles and we hope that some more measures will be announced at the earliest," said Somany.
Stocks in Spotlight:
Maruti Suzuki fell 1.57% to Rs 7136.05. Maruti Suzuki said its total monthly sales were down 1.9% at 1,50,630 units in November 2019 from 1,53,539 units in November 2018.
Tata Motors was down 0.22% to Rs 161.10. The auto major's total vehicle sales slumped 25.32% to 41,124 units in November 2019 from 55,074 units in November 2018.
TVS Motor Company fell 2.89% to Rs 463.20. The company's total auto sales fell 16.68% to 2.66 lakh units in November 2019 as compared to 3.19 lakh units in November 2018. Shifting of Diwali season to the earlier month and planned adjustment of BS IV stocks is reflecting in the sales growth difference between November 2018 and November 2019, the company said.
Hero MotoCorp fell 0.68% at Rs 2415.30 after the company's total sales tumbled 15.32% to 5.16 lakh units in November 2019 from 6.10 lakh units in November 2018.
Bajaj Auto fell 0.19% to Rs 3,170.15 after total vehicles (motorcycles+commercial vehicles) declined 1% to 4.03 lakh units in November 2019 as against 4.06 lakh units in November 2018.
Vodafone Idea jumped 17.57% to Rs 8.03. Vodafone Idea announced new tariffs/plans for its prepaid products and services. New plans will be available across India starting 3 December 2019.
Bharti Airtel advanced 4.82% to Rs 463.60. Bharti Airtel said its revised tariff plans for its mobile customers will be applicable from 3 December 2019. New plans, represent tariff increases in the range of a mere 50 paise/day to Rs 2.85/day and offer generous data and calling benefits, Bharti Airtel said.
Meanwhile, Bharti Airtel said that its board of directors will meet on 4 December 2019 to consider and evaluate any and all proposals for raising of funds either by issuance of equity shares, and or bonds through qualified institutions placement or rights issue, or through any other permissible mode or any combination thereof.
Reliance Industries rose 2.13% to Rs 1584. RIL said Jio will be introducing New All-in-One plans with unlimited voice and data. These plans will have a fair usage policy for calls to other mobile networks. The new plans will be effective from 6 December 2019.
Infosys slipped 0.63% to Rs 691.55. Infosys announced an agreement with the Australian Federal Government's Services Australia to transform the entitlement calculation engine for the nation's welfare system. The project will enable Services Australia to more quickly implement policy changes for the benefit of Australians without disrupting services and deliver operational cost savings.
Yes Bank fell 3% to Rs 66.25 .The bank said that its board approved a decision to raise upto $2 billion through preferential allotment of shares and added that no investor shall hold more than 25% stake in the bank.
JSW Steel rose 2.11% to Rs 266.75. A global brokerage has upgraded the stocks to 'buy' from 'neutral' and hiked price target to Rs 315 from Rs 290. The brokerage cited lower raw material costs and timely completion of projects as the reason for the upgrade.
Tata Steel fell 1.37% to Rs 421.55. A global brokerage has downgraded the stock to 'Sell' from 'buy' and cut price target to Rs 360 from Rs 675. The brokerage said that weakening of India earnings could delay deleveraging.
Overseas, European markets opened higher while most Asian stocks continued to trade higher on Monday as official data over the weekend showed Chinese factory activity rising unexpectedly in November. Also investors clung to hopes Beijing and Washington could reach a compromise in trade talks.
The Purchasing Managers' Index (PMI) bounced back to 50.2 in November, its highest since March, China's National Bureau of Statistics (NBS) said on Saturday. The result compared with 49.3 in October.
In US, stocks closed lower on Friday as investors worried about the deterioration in US-China trade relations after a bill supporting Hong Kong protesters was signed by President Trump late on Wednesday.
President Donald Trump is expected to arrive in the U.K. on Monday morning ahead of a NATO summit. His trip to London comes at a hyper-sensitive time in U.K. politics, with just 10 days to go before Britons head to the ballot box.
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