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Market trades in narrow range; auto stocks slide

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Key barometers slightly came off the day's low and traded near the flat line in mid-morning trading. 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.

At 11:31 IST, the barometer index, the S&P BSE Sensex, was up 65.70 points or 0.16% at 40,859.51. The Nifty 50 index was up 10.20 points or 0.08% at 12,066.25.

The broader market underperformed the benchmark index. The S&P BSE Mid-Cap index was down 0.75%. The S&P BSE Small-Cap index was down 0.25%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 889 shares rose and 1205 shares fell. A total of 163 shares were unchanged. In Nifty 50 index, 20 stocks advanced while 30 stocks declined.

Macros:

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. 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.

Buzzing Index:

Auto stocks witnessed heavy selling pressure after November 2019 sales figures did not show any signs of recovery. Society of Indian Automobile Manufacturers (SIAM) will announce its numbers later today for the month November 2019.

Eicher Motors (down 2.91%), TVS Motors Company (down 1.47%), Maruti Suzuki India (down 1.14%), Hero MotoCorp (down 0.78%), Bajaj Auto (down 0.61%) and Tata Motors (down 0.34%) were top losers in auto segment.

Commercial vehicle manufacturer, Ashok Leyland announced it sales numbers for the month of November 2019. Total sales for the month of November 2019 declined 22% to 10,175 units as against 13,119 units in November 2018. The domestic M&HCV sales stood at 5,321 units in November 2019 as against 8260 units in November 2018, a decline of 36% on YoY basis.

Shares of Ashok Leyland were up 0.19%.

Stocks in Spotlight:

L&T Technology Services (LTTS) announced that it has been selected by Airbus India to manage their Avionics Software Development, V&V (Validation & Verification) and Data Analytics. Shares of LTTS were trading 0.83% higher at Rs 1500.05.

Alembic Pharmaceuticals announced that the company's joint venture Aleor Dermaceuticals has received tentative USFDA Approval for Diclofenac Sodium Topical Solution. Diclofenac Sodium Topical Solution is indicated for the treatment of the pain of osteoarthritis of the knees. Shares of Alembic Pharmaceuticals were trading 1.26% higher at Rs 559.20.

Foreign Markets:

Overseas, Asian markets were trading 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.

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

First Published: Mon, December 02 2019. 11:33 IST
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