Key equity market barometers corrected on Friday on worries of slower economic growth in the September quarter. Rising uncertainty over a US-China trade deal also kept sentiment in check. After hitting an intraday low of 12,017.40, the Nifty index managed to close above the 12,050 level. Mid and small-cap stocks bucked weak market trend.
The barometer index, the BSE Sensex, fell 336.36 points or 0.82% to 40,793.81, as per the provisional closing data. The Nifty 50 index fell 95.10 points or 0.78% to 12,056.05, as per the provisional closing data.
In the broader market, the S&P BSE Mid-Cap index rose 0.16% while the S&P BSE Small-Cap index rose 0.47%. Both these indices outperformed the Sensex.
The market breadth was in the favor of the sellers. On the BSE, 1218 shares rose and 1345 shares fell. A total of 188 shares were unchanged. In Nifty 50 index, 8 stocks advanced while 42 stocks declined.
The Nifty Auto index fell 1.13% to 8,087.35. The index has corrected by 1.40% in two session from its recent closing high of 8202.85 on 27 November 2019.
Ashok Leyland (down 3.01%), Tata Motors (down 2.18%), TVS Motor Company (down 2.17%), Mahindra & Mahindra (down 2.1%), Hero MotoCorp (down 1.45%), Eicher Motors (down 1.01%), Escorts (down 0.75%), Bajaj Auto (down 0.67%) and Maruti Suzuki India (down 0.24%) declined.
Auto companies will declare November auto sales figures on Sunday, 1 December 2019.
Stocks in Spotlight:
Shares of the Future Group surged after the country's competition regulator approved Amazon's acquisition of stake in promoter group entity of Future Coupons. Future Enterprises (up 20%), Future Consumer (up 9.47%), Future Market Networks (up 5%), Future Retail (up 3.57%), Future Supply Chain Solutions (up 1.29%) and Future Lifestyle Fashions (up 0.91%) advanced. In a press released yesterday, the Competition Commission of India approved the acquisition by Amazon.com NV Investment Holdings LLC in Future Coupons.
Adani Gas jumped 8.26% to Rs 151.85 after Competition Commission of India approved Total Holdings SAS 37.4% acquisition in Adani Gas. Earlier in October this year, France's Total S.A. signed a deal to acquire a 37.4% stake in Adani Gas. The French energy giant will buy 25.2% stake from shareholders via an open offer and the remaining shares from Adani Family.
Lemon Tree Hotels advanced 3.36% to Rs 63.10 after it announced that the company has launched 101 rooms hotel named Red Fox Hotels in Vijayawada. The hotel is set on the banks of Krishna River and is an ideal destination of travelers.
HDFC Bank rose 0.56% to Rs 1272.40. The board of directors of the bank has constituted a search committee to identify a successor to Aditya Puri, the current managing director of the bank, whose tenure ends on 26 October 2020. The search committee, over the next few months, shall evaluate internal and external candidates to ensure smooth transition.
Granules India announced that the USFDA has issued Establishment Inspection Report (EIR) for Granules Pharmaceuticals, Inc. facility, a wholly-owned foreign subsidiary of the Company located in Chantilly, Virginia, USA. The facility was inspected by USFDA in August 2019 and concluded with two minor observations. The scrip fell 1.24% to Rs 127.55.
PNB Housing Finance slipped 3.95% to Rs 531.60 after a foreign brokerage reportedly initiated 'sell' rating on the stock with a price target at Rs 458. The brokerage reportedly noted that PNB Housing had structural challenges that could lead to sub-optimal returns, lack of visibility on bottoming of asset quality and erosion of competitive advantage to limit ability to gain market share.
Yes Bank fell 2.57% to Rs 68.25. The bank's board meets today to consider plans for fund raising.
A brokerage has upgraded the stock rating to 'buy' from 'hold' and hiked the price target to Rs 101 from Rs 70. The brokerage said underlying franchise strength would attract capital. Further, it believes that the underlying asset quality is acute and largely factored in.
Indiabulls Housing Finance (IHFL) slumped 14.12% to Rs 287. As per media reports, the Delhi High Court has adjourned the company's matter to 28 February 2020.
IHFL had sought an explicit direction from the Delhi High Court with reference to normal business getting affected due to the pendency of the Public Interest Litigation. The Court, however, refused to pass any interim orders to that effect.
IHFL tumbled 25.84% from the day's high at Rs 376.80, to hit an intraday low of Rs 279.40.
Overseas, shares in Europe and Asia edged lower as investors worried that a new US law backing Hong Kong protests could derail Washington's and Beijing's efforts to end their trade war.
Hang Seng tumbled after US President Trump signed a bill supporting Hong Kong protestors. Hong Kong has been rocked by months of civil unrest initially sparked by a since-withdrawn extradition bill. The bill is in favour of pro democracy and might have grave implications on US China Trade Deal. China's foreign ministry responded, claiming the U.S. had "sinister intentions."
Japan's industrial output slipped at the fastest pace since early last year in October. Factory output fell 4.2% in October from the previous month, trade ministry data showed on Friday, swinging from a 1.7% rise the previous month.
The Bank of Korea announced on Friday its decision to keep the benchmark interest rate steady at 1.25%, in line with expectations.
U.S. financial markets were closed Thursday for Thanksgiving Day and will have an abbreviated trading schedule on Friday.
Back in Europe, U.K. consumer confidence remained stuck at its lowest level since 2013 in November, amid uncertainty over the Dec. 12 general election. Meanwhile, French GDP data for the third quarter is due later in the global day.
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