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Trading turns volatile

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The market barometers were trading near the day's high in afternoon trade. The Nifty traded above 12,000 level and was nearing it all time high of 12,103.05 recorded on 3 June 2019.

At 13:22 IST, the barometer index, the S&P BSE Sensex, was up 91.27 points or 0.22% at 40,745.01. The Nifty 50 index was up 20.05 points or 0.17% at 12,032.10.

Broader markets outperformed the benchmark Sensex. In broader market, the S&P BSE Mid-Cap index was up 0.35%. The S&P BSE Small-Cap index was up 0.36%.

The market breadth was negative. On the BSE, 1163 shares rose and 1140 shares fell. A total of 170 shares were unchanged. In Nifty 50 index, 17 stocks advanced while 33 stocks declined.

Economy:

Credit rating agency Moody's lowered nation's outlook to negative from stable, while retaining the issuer rating at Baa2. The rating agency said its decision to change the outlook to negative reflects increasing risks that economic growth will remain materially lower than in the past, partly reflecting lower government and policy effectiveness at addressing long-standing economic and institutional weaknesses, leading to a gradual rise in the debt burden from already high levels. Moody's cited a growing debt burden and the government's struggle to narrow the budget deficit.

Finance Minister Nirmala Sitharaman on Thursday chaired a meeting with members of the Financial Stability and Development Council (FSDC). The FSDC is an apex-level body constituted, with an aim to strengthen and institutionalise the mechanism of maintaining financial stability and financial sector development among others, by the government of India with the finance minister as its head.

The body also includes the Reserve Bank of India (RBI) governor and chairpersons of the Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA) as its members along with finance ministry officials. The last meeting of the FSDC was held on June 19, in which the global and domestic economic situation and financial stability issues including, inter-alia, those concerning banking and NBFCs were reviewed among others.

Stocks in Spotlight:

Yes Bank (up 7.37%), IndusInd Bank (up 4.55%), ICICI Bank (up 3.36%), Tata Motors (up 1.87%) and Zee Entertainment Enterprises (up 1.66%) advanced.

Bharti Infratel (down 3.60%), Sun Pharmaceutical Industries (down 2.66%), GAIL (India) (down 2.27%), Hindustan Unilever (down 1.85%) and ITC (down 1.52%) declined.

UPL fell 3.14% to Rs 561.70 after consolidated net profit fell 59.4% to Rs 126 crore on 83.6% surge in net sales to Rs 7,817 crore in Q2 September 2019 over Q2 September 2018.

Reliance Industries fell 0.63% to Rs 1449.55. Reliance Strategic Business Ventures (RSBVL), a wholly owned subsidiary of the Reliance Industries has acquired further shares in SkyTran Inc. on 6 November 2019, to increase its shareholding in SkyTran Inc. to 17.37% on a fully diluted basis.

Infosys slipped 0.67% to Rs 715.15. The company announced the opening of its new Digital Innovation Centre in Dusseldorf, Germany.The Centre will help Infosys work more closely with its clients in the region in supporting their digital transformation journey, while focusing on next-generation business suites such as SAP HANA, as well as cloud based services, Internet of Things, 5G, Artificial Intelligence and Machine Learning.

Bharat Petroleum Corporation (BPCL) declined 1.12% to Rs 507.05. BPCL reported 2.68% rise in consolidated net profit to Rs 1502.63 crore on 10.99% fall in total income to Rs 65015.28 crore in Q2 September 2019 over Q2 September 2018.

Power Grid Corporation of India fell 0.85% to Rs 192.30. The company reported 9.49% rise in consolidated net profit to Rs 2571.10 crore on 6.22% increase in total income to Rs 9260.46 crore in Q2 September 2019 over Q2 September 2018.

Bajaj Finance was down 0.42% to Rs 4200. The company allotted 2.17 crore shares to eligible qualified institutional buyers at the issue price of Rs 3,900 per equity share, aggregating to Rs 8,499 crore. The issue opened on 4 November 2019 and closed on 7 November 2019.

Foreign market:

European stocks opened lower while most Asian markets were trading lower as investors digested recent developments on the U.S.-China trade front.

China's exports and imports declined less than expected in October, the media reported citing data from the country's customs.

In US, the Dow and S&P 500 notched record closing highs on Thursday as the latest signs of progress in U.S.-China trade relations relieved investors, but a report raising fresh worries about the outlook for a deal limited the day's gains.

U.S.-China trade sentiment got a boost on Thursday, as Gao Feng, a spokesperson for China's Commerce Ministry, said both sides had agreed to simultaneously cancel some existing tariffs on one another's goods, according to the country's state broadcaster. The ministry spokesperson said both sides were closer to a so-called phase one trade agreement following constructive negotiations over the past two weeks.

A U.S. official also reportedly said both sides agreed to the tariffs rollback. Still, the outlet also reported the plan faces fierce internal opposition in the White House.

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

First Published: Fri, November 08 2019. 13:29 IST
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