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Market trades with minor gains

Capital Market 

Equity market barometers were trading with minor gains in afternoon trade. Trading was volatile ahead of the monthly derivatives expiry on the NSE. At 13:22 IST, the barometer index, the S&P BSE Sensex, was up 67.07 points or 0.16% at 41,087.68. The Nifty 50 index was up 31.85 points or 0.26% at 12,132.55.

In the broader market, the S&P BSE Mid-Cap index was up 0.80%. The S&P BSE Small-Cap index was up 0.30%.

The market breadth was positive. On the BSE, 1196 shares rose and 1069 shares fell. A total of 177 shares were unchanged. In Nifty 50 index, 31 stocks advanced while 19 stocks declined.

Economy:

India's GDP data for September quarter is scheduled to be published on Friday, 29 November 2019. Ratings firm ICRA expects further deterioration in the growth of India's GDP to 4.7% in Q2 of FY2020, due to weakening momentum in the industry.

The Organisation for Economic Co-operation and Development (OECD) recently cut India's economic growth forecast for 2019 to 5.8%, but said it would pick up to 6.2% in 2020 and further to 6.4% in 2021. India's economy grew 6.8% in FY19.

Politics:

Shiv Sena president Uddhav Thackeray will take oath as chief minister of Maharashtra on Thursday evening at the Shivaji Park in Mumbai. Uddhav will be the first member from the Thackeray family to become the chief minister and the third Shiv Sena leader to hold the top post after Manohar Joshi and Narayan Rane. He will be leading a government of the Maha Vikas Aghadi, an alliance of Shiv Sena, Nationalist Congress Party (NCP), and the Congress.

In a shocking development, BJP's Devendra Fadnavis and Ajit were sworn-in as chief minister and deputy chief minister on Saturday morning. The duo stepped down from their posts on Monday evening after the Supreme Court ordered a floor test in the 288-member Assembly the next day.

Stocks in Spotlight:

State Bank of India rose 1.82% to Rs 349.85. SBI Cards, the credit card arm of State Bank of India, filed Draft Red Herring Prospectus (DRHP) for its initial public offer (IPO) with Sebi.

SBI Cards will reportedly offer up to 13.05 crore equity shares via offer for sale route. This will include up to 3.72 crore share sale by SBI and up to 9.32 crore shares on offer by Carlyle Group (CA Rover). In addition, the company will also issue fresh equity shares of Rs 500 crore, the reports added.

Reliance Industries (RIL) was up 0.27% at Rs 1574. RIL has become the first Indian company to a hit a 10-lakh crore market capitalisation. The stock hit a record high of Rs 1581.25 today.

Ashok Leyland was trading 0.79% lower at Rs 81.15. The commercial vehicle maker announced that it has signed MoU and entered into a strategic partnership with Axis Bank. The partnership will focus on strategic financing for two years to offer customised financial solution to the customers based across India, including semi-urban and rural regions.

Yes Bank rose 1.61% to Rs 69.35 after surging 7.65% in the previous session. Yes Bank continued to be in spotlight after the bank's board will meet on 29 November 2019 to consider raising of funds by issuing equity/equity linked securities through permissible modes, subject to necessary shareholders and regulatory approvals.

Yes Bank is banned from trading in NSE's F&O segment after crossing 95% of market wide position limit for second day in a row.

Zee Entertainment Enterprises (ZEEL) fell 2.07% to Rs 312.90 after three directors of the company resigned, with two citing related-party loans and film advances, among other issues, as the reasons.

Cipla rose 0.16% to Rs 468.5. The drug major's wholly owned subsidiary Cipla (EU), holding 60% stake in Cipla Pharma Lanka, Sri Lanka, has signed an agreement with CitiHealth Imports to acquire the remaining 40% stake in Cipla Pharma Lanka. Post-acquisition, Cipla Pharma Lanka will become a wholly owned subsidiary.

Foreign Markets:

Overseas, European stocks opened lower while Asian markets continued to trade lower as investors monitored friction between the U.S. and China over the Hong Kong protests.

Bills backing protesters in Hong Kong were signed into law by US President Donald Trump on Wednesday did not help to revive sentiment.

Trump reportedly signed into law two bills backing protesters in Hong Kong. That move came despite past objections by China amid ongoing trade negotiations between Beijing and Washington for an anticipated 'phase one' deal. Hong Kong's government on Thursday voiced strong opposition to the move, saying it will send the wrong signal to protesters.

US markets edged up for a fourth straight day to score another round of records Wednesday, supported by rosier US economic data and ongoing hopes for a US-China trade deal. US financial markets will be closed on Thursday for Thanksgiving Day and will have an abbreviated trading schedule on Friday.

In US economic data, a revised estimate of third-quarter GDP that showed the U.S. economy expanded at a 2.1% annual pace versus a previous estimate of 1.9%. The Federal Reserve's Beige Book reported US businesses have seen continued growth in economic activity, wages and prices during recent weeks, and they maintain a generally positive outlook.

Back in Europe, traders digested polling data out of the U.K. ahead of a crucial 12 December election. A YouGov poll showed Prime Minister Boris Johnson on course to win a solid majority of 68 seats in Parliament.

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

First Published: Thu, November 28 2019. 13:22 IST
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