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Nifty snaps 3-day losing streak

Capital Market 

The Nifty 50 index snapped three-day losing streak on Wednesday. After slipping below 11,950, the Nifty reversed trend to end above 12,000 mark. Shares bounced back in late trade, boosted by news reports that the U.S. and China were edging closer to a trade deal. Following the news reports, the US Dow futures jumped 135 points.

The barometer index, the BSE Sensex, rose 174.84 points or 0.43% to 40,850.29, as per the provisional closing data. The Nifty 50 index rose 43.10 points or 0.36% to 12,037.30, as per the provisional closing data.

Both these indices hit day's low in afternoon trade after U.S. President Donald Trump said a trade deal with China might have to wait until after the 2020 presidential election. Fresh U.S. tariffs on Argentina and Brazil as well as threatened duties on French goods also spoiled trading sentiment. Investors remained cautious ahead the Reserve Bank of India's policy statement due on Thursday.

In the broader market, the S&P BSE Mid-Cap index rose 0.52% while the S&P BSE Small-Cap index advanced 0.33%.

The market breadth was negative. On the BSE, 1256 shares rose and 1211 shares fell. A total of 206 shares were unchanged. In Nifty 50 index, 34 stocks advanced while 16 stocks declined.

Foreign portfolio investors (FPIs) offloaded shares worth a net Rs 1897.86 crore in the cash segment in the past two sessions.

Economy:

The Union Cabinet on Wednesday approved six bills including the Citizenship Amendment Bill and extended reservation for SCs and STs in the Lok Sabha and the State Assemblies for another 10 years. Information and Broadcasting Minister Prakash Javadekar said the Bill will be introduced in Parliament in a day or two. The Cabinet also approved land monetisation at Pragati Maidan to build a five-star hotel.

The Cabinet also approved the launch of Bharat Bond Exchange Traded Fund (ETF). Bharat Bond ETF would be the first corporate bond ETF in the country. It will provide additional money for CPSUs, CPSEs & other government organizations.

Further, Finance Minister Nirmala Sitharaman said that the government is looking into the issue of unpaid GST compensation to certain states. The finance ministers of Delhi, Punjab, Puducherry and Madhya Pradesh and representatives Kerala, Rajasthan, Chattisgarh and West Bengal attended the meeting over delay in payment of compensation.

Global credit rating agency Standard & Poor's reaffirmed India's sovereign rating at 'BBB-' with stable outlook. S&P said 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.

Meanwhile, 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:

The Nifty Metal index rose 1.49% to 2,602.45, reversing some of the losses acquired in the previous session.

NMDC (up 4.62%), Steel Authority of India (up 3.55%), Vedanta (up 3.4%), Jindal Steel & Power (up 2.77%), Hindalco Industries (up 2.73%), Tata Steel (up 2.65%), JSW Steel (up 1.26%), National Aluminium Company (up 0.92%) and Hindustan Zinc (up 0.26%) advanced. Hindustan Copper fell 0.38%.

Stocks in Spotlight:

ICICI Bank (up 3.82%), TCS (up 1.39%) and Infosys (up 1.37%) were the top contributors.

Reliance Industries (down 1.67%) and HDFC Bank (down 0.32%) were the top laggards.

Tata Motors surged 7.08% to Rs 169.35. Jaguar Land Rover (JLR), Tata Motors' UK unit, said that total November U.S. sales reached 12,472 units, up 6% from November 2018. For the calendar year, JLR achieved 111,895 units, an increase of 3% as against 108,377 units in 2018.

Bharti Airtel advanced 0.24% to Rs 460.05. The company's board will meet today to consider and evaluate any and all proposals for raising of funds either by issuance of equity shares, and or bonds.

Larsen & Toubro (L&T) fell 2.21% to Rs 1284.55. L&T announced that the construction arm of the company has significant secured orders from prestigious clients across various Indian states for its varied businesses. As per the company's classification, the valuation of the significant orders received lies between Rs 1,000 to Rs 2,500 crore.

Natco Pharma advanced 2.33% to Rs 596.05. The pharmaceutical company completed the investment of Rs 5 crore in OMRV Hospitals in the form of 5 ,00,000, 0.05% Compulsory Convertible Cumulative Preference Shares (CCCPS) under Private Placement. The company will be holding 12.81% of the shares on a fully diluted basis of Share Capital of OMRV Hospitals.

Eris Lifesciences rose 1.87% to Rs 442. The company announced the acquisition of 'Zomelis' trademark from Novartis AG. The trademark acquisition is done for $13 Million. Zomelis is used to treat type-two diabetes.

HDFC Asset Management Company fell 2.39% to Rs 3359.25. The company's promoter, Standard Life Investments, will offload 2.23% stake in the fund house on 4-5 December through offer-for-sale (OFS) mechanism. The share-sale is being undertaken by the promoter for achieving the minimum public shareholding in the company as prescribed under markets regulator Sebi's norm.

Foreign Markets:

European stocks bounced back from early losses after media reports suggested that the U.S. and China were edging closer to a trade deal. According to reports, the two countries were moving closer to agreeing on the amount of tariffs that would be rolled back in a phase-one trade deal.

Asian markets ended 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.

Speaking to reporters in London on Tuesday, Trump said he had "no deadline" for striking a deal with Beijing. It had previously been expected the world's two largest economies could sign a so-called "phase one" trade deal before the end of 2019.

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.

In the U.K., several world leaders have gathered in London to mark the 70th anniversary of NATO.

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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. 15:35 IST
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