>> Indices end choppy day in the red; Sensex slips 73 pts; Nifty ends below 11,900;
>> Telecom stocks continue to rally, Bharti Airtel hits 21-mth high; Voda Idea surges over 21%
>> Glenmark Pharma jumps 21% on CLSA upgrade; &
>> India not facing 5% slowdown, we are the fastest growing economy, says govt
News in detail -
Monday turned out to be a listless day for the benchmark indices; however, broader market witnessed some buying with the S&P BSE MidCap index surging nearly half a per cent.
The S&P BSE Sensex ended at 40,284, down 73 points or 0.18 per cent with Bharti Airtel (up nearly 5 per cent) being the top gainer and YES Bank (down 4 per cent) the biggest drag. HDFC Bank, Reliance Industries (RIL), TCS, L&T, and Asian Paints contributed the most to the index's loss. During the day, Sensex hit a high and low of 40,542.40 and 40,221.97, respectively.
Shares of telecom companies - Vodafone Idea and Bharti Airtel continued to surge after the government said it would not like any telecom operator in the country to shut operations. Bharti Airtel hit a 21-month high of Rs 420, up 7 per cent as most of the brokerages maintained a bullish stance on strong operating performance in September quarter (Q2FY20). The stock ended at Rs 409 on the BSE, up 4 per cent. Vodafone Idea zoomed naerly 21.50 per cent to Rs 4.47.
In the broader market, the S&P BSE MidCap index outperformed the benchmarks by surging 65 points or around 0.5 per cent to end at 14,838. Glenmark Pharma was the top gainer on the index. The stock zoomed 21 per cent to Rs 365.50 apiece on the BSE after global brokerage firm CLSA upgraded the stock to 'buy' from 'sell'.
On the NSE, the Nifty50 index ended below 11,900 level at 11,894, down 1 point or 0.01 per cent with 29 constituents advancing, 20 declining and 1 remaining unchanged.
India VIX surged over 4 per cent to 15.67 levels, indicating increased volatility in the market.
Sectorally, FMCG and auto counters ended in the red while metal stocks advanced the most followed by PSU bank stocks. The Nifty Metal index gained nearly 2 per cent to 2,543.50 levels and the Nifty PSU Bank index added around 1.50 per cent to 2,493-mark.
Nifty outlook from Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.
According to the expert, the price action over the last few sessions suggests that the market is in a flux for the near term. Characteristically, the structure is developing as a Complex Correction as per the Elliott Wave Theory. The next leg of the correction is expected over the next few sessions as long as the Nifty trades below the near term resistance zone of 11973 – 12000. This means that the last week’s low of 11,802 is likely to be breached on the downside over the next couple of sessions & the index can tumble down to 11,700-11,600 subsequently.
A quick look at the global markets
Asian shares ticked higher on Monday after Beijing surprised markets by trimming a key interest rate for the first time since 2015, stirring speculation that further stimulus was on the way for the world’s second-largest economy. The news helped Shanghai blue chips recoup early losses to rise 0.8 per cent, though the initial reaction was cautious overall. MSCI's broadest index of Asia-Pacific shares outside Japan moved 0.3 per cent higher.
Japan's Nikkei firmed 0.3 per cent, and was just short of its recent 13-month top. E-Mini futures for the S&P 500 held steady, as did EUROSTOXX 50 futures.
In commodities, oil prices were supported after Brent touched a seven-week high on Friday. Brent crude futures firmed 4 cents to $63.34, while US crude added 4 cents to $57.76 a barrel.