The market declined for third day in a row, led by losses in Larsen & Toubro, ICICI Bank and HDFC. Strength in Infosys and Yes Bank supported the bourses. Sentiment was impacted by weak IIP data and negative global stocks.
The Sensex fell 156.28 points or 0.43% to settle at 35,853.56, its lowest closing level since 7 January 2019. The index rose 115.10 points, or 0.32% at the day's high of 36,124.94. The index fell 318.09 points, or 0.88% at the day's low of 35,691.75.
The Nifty 50 index fell 57.35 points or 0.53% to settle at 10,737.60, its lowest closing level since 4 January 2019. The index rose 13.05 points, or 0.12% at the day's high of 10,808. The index fell 102.60 points, or 0.95% at the day's low of 10,692.35.
The Sensex settled below the psychological 36,000 level after sliding below that level in early trade. Domestic stocks drifted lower in early trade on negative Asian stocks. Data showing a sharp drop in IIP in November 2018 also dented early sentiment. Stocks extended initial fall in morning trade. Weakness persisted on the bourses in mid-morning trade on selling pressure in index pivotals. Stocks staged a mild recovery in early afternoon trade after hitting fresh intraday low. Indices were trading in a narrow range in afternoon trade. Key indices cut losses in mid-afternoon trade. Stocks extended recovery in late trade.
The S&P BSE Mid-Cap index fell 0.49%. The S&P BSE Small-Cap index fell 0.44%.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1031 shares rose and 1487 shares fell. A total of 196 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Capital Goods index (down 1.93%), the S&P BSE Metal index (down 1.14%) and the S&P BSE Power index (down 1.13%), underperformed the Sensex. The S&P BSE Healthcare index (up 0.38%), the S&P BSE IT index (up 0.09%) and the S&P BSE Consumer Durables index (down 0.05%), outperformed the Sensex.
Jet Airways (India) jumped 16.13% on media report that the company is close to finalising a resolution plan. Media reported on Monday that Jet Airways was likely to finalise a resolution plan with its lenders this week, and that founder and chairman Naresh Goyal would trim his 51% stake to 20-25% and agree to voting rights on his stake being capped at 10%, in a bid to save the debt-laden carrier. The report also said Etihad may infuse capital into Jet Airways and raise its stake from the 24% it currently owns.
Yes Bank advanced 6.22%. Yes Bank announced the appointment of Mr. Brahm Dutt as non-executive part-time chairman of the board. The Reserve Bank of India, pursuant to the provisions of the Banking Regulation Act, 1949, and basis Mr. Brahm Dutt's outstanding credentials and experience, has approved his appointment as part-time chairman of Yes Bank's board up till 4 July 2020 vide its letter dated 11 January 2019.
Brahm Dutt has been on the board of Yes Bank since July 2013 as an independent director, and has contributed to almost all the sub-committees of the board over the past 5.5 years and is currently also the chair of the nomination & remuneration committee. The announcement was made on Saturday, 12 January 2019.
Infosys gained 2.52%. On a consolidated basis, Infosys' net profit fell 12.17% to Rs 3610 crore on 3.84% increase in revenues to Rs 21400 crore in Q3 December 2018 over Q2 September 2018. Operating profit was reported at Rs 4830 crore, a growth of 11.8% year-on-year and a decline of 1.3% quarter-on-quarter.
The company revised its FY2019 revenue guidance in constant currency upward to 8.5%-9.0%. It retained operating margin guidance at 22%-24%. The result was announced after market hours on Friday, 11 January 2019.
The company's board approved buyback of equity shares, from the open market route through the Indian stock exchanges, amounting to Rs 8260 crore (maximum buyback size) at a price not exceeding Rs 800 per share (maximum buyback price), subject to shareholders' approval by way of postal ballot. Further, the board also approved a special dividend of Rs 4 per share.
Maruti Suzuki India rose 1.13% . Maruti Suzuki India during market hours today said that the company's all-new WagonR will soon entice customers with its robust body language, wider stance, dynamically crafted interiors and spacious cabin with best-in-its class boot space. Robust and energetic, the Big New WagonR is poised to appeal to the ever-changing aspirations of young Indian customers. The company today opened bookings for the 3rd generation WagonR at its authorized dealer network across the country. The Big New WagonR will be launched in its newest avatar in the coming weeks.
NTPC fell 1.56%. NTPC said it has decided to raise Rs 4,000 crore through private placement of secured non-convertible bonds in the nature of debentures at a coupon of 8.30% per annum with a door to door maturity of 10 years, on 15 January 2019. The proceeds will be utilized to finance capital expenditure/refinancing the debt requirement in on-going projects and other general corporate requirements. The bonds are proposed to be listed on both NSE & BSE. Security for these bonds will be duly created as per the requirements of and within the period of time prescribed under, the Companies Act and rules specified therein. The announcement was made after market hours on Friday, 11 January 2019.
Jammu & Kashmir Bank rose 3.03% after net profit rose 43.16% to Rs 103.75 crore on 20.97% increase in total income to Rs 2166.22 crore in Q3 December 2018 over Q3 December 2017. The result was announced on Saturday, 12 January 2019.
The ratio of gross NPAs to gross advances stood at 9.94% as on 31 December 2018 as against 9% as on 30 September 2018 and 10.08% as on 31 December 2017. The ratio of net NPAs to net advances stood at 4.69% as on 31 December 2018 as against 3.91% as on 30 September 2018 and 4.29% as on 31 December 2017.
On the macro front, the annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 3.80% (provisional) for the month of December 2018 (over December, 2017) as compared to 4.64% (provisional) for the previous month and 3.58% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 3.27% compared to a build up rate of 2.21% in the corresponding period of the previous year. The data released during market hours today, 14 January 2019.
India's index of industrial production (IIP) (base year 2011-12=100) moderated sharply to mere 0.5% in November 2018, compared with 8.4% growth recorded in October 2018. The industrial production growth for October 2018 has been revised upwards from 8.1% increase reported provisionally. The data released after market hours on Friday, 11 January 2019.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 70.775, compared with its close of 70.4975 during the previous trading session.
In the global commodities markets, Brent for March 2019 settlement was down 88 cents at $59.60 a barrel. The contract fell $1.20 a barrel or 1.95% to settle at $60.48 a barrel during the previous trading session.
Overseas, European markets were trading lower after a shock contraction in Chinese exports heightened fears of a slowdown in the world's second-largest economy. In Europe, British Prime Minister Theresa May reportedly warned Sunday that lawmakers risk undermining the public's faith in democracy if they reject her divorce deal with the European Union in a vote set for Tuesday. May said some members of Parliament were playing political games with the Brexit debate. Lawmakers, she said, should respect the results of the 2016 referendum in which 52% of voters backed leaving the EU.
Asian shares fell as China reported a slowdown in exports. Markets in Japan are closed for a holiday. China said Monday that its exports to the U.S. contracted in December although its overall trade surplus with the U.S. hit a record $323 billion in 2018. Exports to the U.S. rose 11.3% to $478.4 billion for the year despite punitive tariffs imposed by President Donald Trump in a fight over Chinese technology ambitions. The customs data showed imports of American goods rose just 0.7% over 2017, reflecting the impact of Beijing's retaliatory tariffs and encouragement to importers to buy more from non-U.S. suppliers.
In US, the Wall Street dipped slightly on Friday, breaking a five-session rally, as energy shares declined and investors looked ahead to earnings season. The Dow Jones Industrial Average ended down 0.02% at 23,995.95 points, while the Nasdaq Composite dropped 0.21% to 6,971.48. The S&P 500 ended down 0.01% at 2,596.26.
Meanwhile, the partial US government shutdown entered its 21st day, tying the record for the longest in history. Economists reportedly warn that the economic effects of the shutdown could grow significant as the standoff drags on.
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