Key market barometers tumbled amid wide spread selling pressure on Friday. After starting the day in the green, the market reversed trend as the session progressed and hit day's low in mid-afternoon trade.
The barometer index, the BSE Sensex, fell 334.44 points or 0.82% to 40,445.15, as per the provisional closing data. The Nifty 50 index fell 96.90 points or 0.81% to 11,921.50, as per the provisional closing data.
The sentiment was subdued after the Reserve Bank of India (RBI) unexpectedly left interest rates unchanged on Thursday. In a surprise move, the RBI decided to hold the rates after delivering five consecutive rate cuts in 2019. The move was driven by the rising inflationary pressure and gradual improvement in monetary transmission.
RBI revised GDP growth downwards to 5% for 2019-20 from 6.1% projected in its October policy. The CPI inflation projection has also been revised upwards to 4.7-5.1% for the second half of FY20 and 3.8-4% for the first half of FY21.
Meanwhile, RBI's consumer confidence survey (CCS) released on Thursday reported a further drop in consumer confidence in November as households remained pessimistic about jobs and the general economic situation. The current situation index (CSI) dropped to 85.7 last month from 89.4 in September. The future expectations index (FEI) also fell to 114.5, down from 118 in September.
Consumers' sentiments on the general economic situation and the employment scenario weakened, but their one-year ahead expectations remained in the optimistic terrain for all parameters, except prices; expectations on income one-year ahead improved marginally over the previous survey round, said the RBI survey.
In the broader market, the S&P BSE Mid-Cap index slipped 1.26% while the S&P BSE Small-Cap index fell 0.86%.
The market breadth was weak. On the BSE, 879 shares rose and 1647 shares fell. A total of 183 shares were unchanged. In Nifty 50 index, 9 stocks advanced while 41 stocks declined.
Buzzing Index:
The Nifty Auto index fell 1.70% to 7,806.60. The index has fallen 2.37% in two sessions.
Eicher Motors (down 2.8%), Hero MotoCorp (down 2.56%), TVS Motor Company (down 2.29%), Escorts (down 1.81%), Tata Motors (down 1.56%), Maruti Suzuki India (down 1.51%) and Bajaj Auto (down 1.11%) declined. Ashok Leyland rose 0.13%.
Mahindra & Mahindra (M&M) fell 2.72% to Rs 510.35. The company said it has completed acquisition of 36.63% stake in Meru Travel Solutions in the first tranche as part of its Rs 201.5-crore deal to acquire 55% shareholding in the radio taxi operator.
M&M said it has invested Rs 44.71 crore (in cash consideration) for the acquisition of 36.63% of the equity share capital of Meru. The company has also earned the right to appoint majority of the directors on the board of Meru. Consequently, Meru has become a subsidiary of the company with effect from 5 December 2019. Also subsidiary companies of Meru - Meru Mobility Tech, V-Link Automotive Services, V-Link Fleet Solutions - have in turn become subsidiaries of M&M, it added.
Stocks in Spotlight:
Vodafone Idea fell 5.61% to Rs 6.90 after the company's chairman Kumar Mangalam Birla said the company will shut shop if there is no government relief.
Birla was responding to a query, posed at an event, about the company's course of action going forward in the absence of government relief. Birla said the Aditya Birla Group will not invest any money in the company in the absence of relief from the government. Birla said the company will have to opt for insolvency route in the absence of relief.
Telecom provider Bharti Airtel declined 0.74% to Rs 443.90. S&P maintained its 'BBI' rating on long term-facilities with negative implications due to Rs 34,00 crore setback from Department of Telecom (DoT) litigation will adversely affect the company's growth prospects.
Yes Bank tanked 9.82% to Rs 56. Yes Bank said Moody's Investors Service downgraded its long term foreign currency issuer rating to B2 from Ba3. Moody's has also downgraded the bank's long-term foreign and local currency bank deposit ratings to B2 from Ba3, foreign currency senior unsecured MTN program rating to (P)B2 from (P)Ba3, and Baseline Credit Assessment (BCA) and Adjusted BCA to b3 from b1. The outlook on the bank's ratings, where applicable, is negative. Moody's expects Yes Bank's common equity tier 1 (CET1) ratio of 8.7% at the end of September 2019 to come under significant pressure, unless the bank can raise new capital in the next few quarters.
RBL Bank fell 7.28% to Rs 333.80. The private sector bank said the qualified institutional placement (QIP) of equity shares ended on Thursday, 5 December 2019. It has approved allocation of 5.77 crore equity shares at an issue price of Rs. 351 per share.
Bajaj Finance slipped 0.61% to Rs 3,962.90. The NBFC said it participated in QIP of RBL Bank and have been allotted 42.73 lakh equity shares at a price of Rs. 351 per equity shares aggregating to approximately Rs 150 crore.
Tata Motors fell 3.07% to Rs 161. The board approved the allotment of 20.16 crore ordinary shares and 23.13 crore warrants, with each warrant carrying a right to subscribe to one ordinary share per warrant, at a warrant price of Rs 150 per piece, on preferential basis to Tata Sons. The announcement was made after market hours yesterday, 5 December 2019.
Maruti Suzuki India fell 1.77% to Rs 6881.35. The company will recall for certain petrol Smart Hybrid (SHVS) variants of Ciaz, Ertiga and XL6 vehicles manufactured between 1 January 2019 to 21 November 2019. The announcement was made during trading hours today, 6 December 2019.
Shares of CSB Bank slumped 7.86% at Rs 274.25 on profit booking after strong listing gains.
Omaxe was locked in the lower circuit limit of 20% at Rs 143.95. The stock of real estate company was trading at its lowest level since April 2016.
Eris Lifesciences surged 7.81% to Rs 476.95, in a weak market. The stock of the pharmaceutical company was trading at its highest level since July 2019.
This week, the company announced acquisition of the trademark Zomelis, for Vildagliptin-based formulations, and its associated trademarks from Novartis AG, Switzerland, for a consideration of $13 million.
Vascon Engineers rose 3.69% to Rs 12.63. The company has received work order amounting to Rs 132.69 crore from Airports Authority of India.
Foreign Markets:
Shares in Europe and Asia edged higher as investors await employment data out of the U.S. and monitor trade developments between Beijing and Washington.
In US, stocks moved higher on Thursday as investors remained optimistic about prospects for a US-China trade deal despite a looming deadline for the imposition of fresh import tariffs by President Donald Trump.
In economics news, the Labor Department released a report on Thursday showing an unexpected decrease in first-time claims for U.S. unemployment benefits in the week ended November 30th. The report said initial jobless claims slipped to 203,000, a decrease of 10,000 from the previous week's unrevised level of 213,000. With the unexpected decrease, jobless claims fell to their lowest level since hitting 193,000 in the week ended April 13th.
US new orders for manufactured goods rose by 0.3% in October after falling by a revised 0.8% in September, according to a report released by the Commerce Department on Thursday.
Meanwhile, oil prices rose Thursday after OPEC members agreed in principle to another cut to output during the first quarter of 2020. OPEC members are starting their second day of talks on Friday.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
