Wall Street fell on Monday after President Donald Trump said he would restore tariffs on metal imports from Brazil and Argentina, while weak domestic manufacturing data fanned worries of a slowing economy in the wake of the U.S.-China trade war.
The U.S. economy's manufacturing sector contracted for a fourth straight month in November, as new order volumes slid back to around their lowest level since 2012. Construction spending also unexpectedly fell in October.
ETMarkets Evening Podcast: Why D-Street ignored dismal GDP data
Nifty opened the day with a marginal gain, but after hitting 12,137, profit booking dragged the index to make low at 12,024 and closed the day at 12,048. Nifty has good support in 12,000-11,950 zone. If it manages to sustain above said levels then we may see current bullish momentum to be intact and we may see good pull back towards immediate hurdle of 12,100-12,150 zone
- Rohit Singre, Senior Technical Analyst, LKP Securities
Nifty has formed a range of 12,000-12,150 and till this range is broken on either side, the market will continue to remain sideways. Traders can trade in stock specific movements. For the index one can trade the range by buying near the lower end and selling at higher end of the range or look to wait for breakout on either side to get into the momentum and short-term direction. Overall the index is bullish and once it crosses 12,150 it can move swiftly till 12,400
- Amit Shah, Technical Research Analyst, Indiabulls Ventures
Nifty remained under pressure throughout the session and trimmed all the intraday gains. Eventually, Nifty concluded the session with a negligible loss and formed a Red Body Candle on the daily chart. However, it continued to sustain well above the breakout level of the Bullish Pennant Pattern on the daily chart. We maintain our positive stance on Nifty for an up-ward move towards 12,250 level. On the flipside, the immediate support is placed in the 12,000 – 11,980 zone
Despite positive sentiment in the global markets due to better-than-expected manufacturing data in China, domestic stocks traded rangebound on account of weak GDP, auto sales and ahead of RBI’s monetary policy this week. Market is hoping for further stimulus and fall in interest rates to revive the slowing economy. Weakness was broad based while telecom stocks jumped on account of aggressive tariff revision
- Vinod Nair, Head of Research at Geojit Financial Services
Sensex ends in black; Nifty below 12,050
The weak GDP data and subdued auto sales numbers are likely to impact investor sentiment in the short term. All eyes will now be on RBI monetary policy for economic revival measures going forward. On the global front, investors are eagerly awaiting a positive outcome of the US-China trade negotiations, which could strengthen the rally in the global markets. In addition, currency and crude price movement will continue to impact investor sentiments
- Ajit Mishra, VP - Research, Religare Broking
CLOSING BELL: RIL, Airtel help Sensex end in black; index up 8 pts; Nifty below 12,050; Suven Life plunges 15%
We believe that given the transient nature of food prices, and the sustained decline in core inflation, the MPC will likely continue to focus on the output gap and growth outlook. We maintain our call for 25 bps reduction in the repo rate to 4.9% in the December policy to continue providing support to growth.
ALERT: Ujjivan SFB IPO fully subscribed on Day 1; retail quota subscribed 6 times
The initial public offering of Ujjivan Small Finance Bank (USFB) got fully subscribed on Day 1 of the bidding process, thanks to strong retail interest. On BSE, the issue was subscribed 76 per cent, with retail individual investor (RII) quota subscribing by 4.34 times. On NSE, the issue got 30 per cent subscription, with RII quota subscribing by 1.75 times.
Crisil lowers India FY20 GDP forecast to 5.1% from 6.3% earlier
Rating agency Crisil on Monday sharply cut its growth forecast for the current financial year to 5.1 per cent from an earlier estimate of 6.3 per cent. The move comes ahead of the RBI's announcement on lending rates on December 5. The RBI's monetary policy committee (MPC) will meet between December 3-5 to review the interest rates.
TVS Motor sales drops 16% to 2.66 lakh units in November
Price as on 02 Dec, 2019 02:36 PM, Click on company names for their live prices.
Ujjivan is a play on the MFI growth story. So far, it has effectively managed to grow assets with decent asset quality profile. However, going forward trajectory of business model will change with buildup of non-MFI loans and ramp of retail liabilities which shall be an uphill task for the new management in the wake of tough competition in the market space. Also, the bank will have to reduce down the promoter stake further to 40% over the next 2 years from levels of 84% post IPO as per RBI guidelines which will be a hangover in the medium term. In this backdrop, in our view, the bank is not likely to trade at higher multiples. Our back of the envelope calculation suggests, the bank is trading at 1.6x FY22e. Given reasonable valuations, we recommend ‘SUBSCRIBE’ to the issue
- Anusha Raheja, BFSI Research Analyst, LKP Securities
These 5 stocks look set to rise, shows MACD
Potential payment of past-due fees weighs on Bharti Airtel's credit profile: Moody's
Indian telecom industry's competitive dynamics as also the financial health of Bharti Airtel Ltd and Vodafone Idea Ltd will be impacted if the companies are to pay past statutory dues arising out of a Supreme Court ruling, Moody's Investors Service said on Monday.
Potential payment of past due fees weighs on the credit profile of Bharti Airtel Ltd despite spectrum moratorium and price hikes, it said.
ICICI Securities maintains Buy rating on Timken India
Amid a challenging environment, Timken has managed to report a reasonable operating performance in H1FY20.
With reasonable exposure towards railways, exports and distribution business, the company is likely to manage a revenue CAGR of 8.3% in FY19-21E.
This is against the backdrop wherein other companies in the bearing space are likely to see a muted performance.
On the other hand, a reset of margins at a higher level (led by operational efficiencies) would also act as a hedge against negative operating leverage.
We expect a PAT CAGR of 21.4% in FY19-21E, which is among one of the best in our midcap capital goods coverage.
We maintain BUY with a revised target price of Rs 1020/share.
Ujjivan SFB IPO subscribed 27% within 90 mins of bidding process
The initial public offering of Ujjivan Small Finance Bank (USFB) witnessed 27 per cent subscription within the first 90 minutes of the bidding process. The issue received bids for 3,37,51,600 shares against an issue size of 12,39,58,333 share by 11.30 pm.
Stock recommendations from top global brokerages
Credit Suisse on RIL
Credit Suisse maintains neutral rating on RIL with a target price of Rs 1,551 per share. It expects Jio yo maintain discount to peers Airtel and Vodafone Idea and sees a hike in price of 25-30% for the most popular plans.
JP Morgan on Maruti Suzuki
JP Morgan is overweight on Maruti Suzuki and has a target price of Rs 7,900 on the stock. With good November wholeale figures and receding discount, the brokerage believes Maruti is well positioned given its strong product portfolio.
HSBC on Tata Power
HSBC maintains hold rating on Tata Power but reduced target price on the stock by 13% to Rs 65 per share. "Deleveraging effort and Mundra resolution remains slow," it added.
Citi on L&T Holding Finance
Citi maintains buy rating on the stock with a target price of Rs 125 per share. The firm is evaluating new segments and a longer term strategy; the concerns on real estate portfolio were overdone, the brokerage added.
Credit Suisse on telecom
The brokerage remains constructive on Bharti Airtel and neutral on Vodafone Idea. It expects Jio to also participate in market repair. Thr brokerage sees a hike in tariffs over next 12-18 months which would likely benefit Jio and Bharti Airtel.
Auto stocks fall on poor show in November sales data
Price as on 02 Dec, 2019 12:14 PM, Click on company names for their live prices.
'Raymond brand' to remain with new demerged lifestyle firm
India's manufacturing growth picks up in November: PMI
India’s manufacturing activity picked up in November as new orders and output rose at a faster pace, a survey showed on Monday, although factories were less optimistic about the future, shedding jobs for the first time since March last year.
Bajaj Auto sales marginally down to 4.03 lakh units in November
Dalal Street expects another 25 bps RBI rate cut: Poll
DHFL shares fall nearly 5% as RBI starts resolution process
Price as on 02 Dec, 2019 10:54 AM, Click on company names for their live prices.
Vodafone Idea, Bharti Airtel rally up to 23% on hike in tariffs
Price as on 02 Dec, 2019 10:20 AM, Click on company names for their live prices.
Rupee slips 4 paise to 71.78 against dollar in early trade
The Indian rupee opened on a cautious note and fell 4 paise to 71.78 against the US dollar in early trade on Monday as economic growth concerns and rising crude oil prices kept investors edgy. Forex traders said investors traded the cautious path after India's Q2 GDP growth dipped to over 6-yr low of 4.5 per cent.
India's GDP growth hit an over six-year low of 4.5 per cent in July-September 2019, dragged mainly by deceleration in manufacturing output and subdued farm sector activity, according to official data released on Friday.
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Voda Idea, YES Bank, Dish TV among most active stocks on NSE
Price as on 02 Dec, 2019 09:25 AM, Click on company names for their live prices.
Pre-open session: Sensex gains 150 points, Nifty tops 12,150; rupee trades at 71.78 against dollar
Singapore trading sets stage for tepid start
Nifty futures on the Singapore Exchange traded 11 points, or 0.09 per cent, lower at 12,090, indicating a tepid start for Dalal Street.
Tech view: Nifty forms Bearish Belt Hold
Nifty fell nearly 100 points on Friday to settle just above the 12,050 mark. The index formed a Bearish Belt Hold pattern on the daily chart. During the day, the index respected its immediate support at the 11,990 level, but eventually closed below its five-day moving average, suggesting a weakening of the bullish trend.
Asian shares gain in early trade
Global shares ticked up on Monday and oil rebounded after a big fall late last week, as investors clung to hopes Beijing and Washington could reach a compromise in trade talks although increasing tensions over Hong Kong unsettled market confidence. MSCI's index of Asia-Pacific shares outside Japan was up 0.17%, reclaiming some of its one-percent-plus loss on Friday while Japan's Nikkei rose 0.85%.
US stocks on Friday
Us stocks fell broadly on Wall Street Friday following a shortened trading session a day after the Thanksgiving holiday that left the market slightly below its record highs. The S&P 500 index dropped 12.65 points, or 0.4 per cent, to 3,140.98. The index hit all-time highs the first three days of the week. The Dow Jones Industrial Average fell 112.59 points, or 0.4%, to 28,051.41. The Nasdaq slid 39.70 points, or 0.5%, to 8,665.47.
Oil prices jump over 1%
On Monday, Brent crude futures rose 1.16 per cent to $61.19 a barrel while US West Texas Intermediate (WTI) crude gained 1.41 per cent to $55.95 per barrel. The market drew some support from expectations that OPEC and its allies are likely to extend existing oil output cuts when they meet this week.
All eyes on Nov Auto sales figures
Nirmal Bang Institutional Equities expects sequential decline in PV sales volume in November on account of seasonality and high base. Discounts and offers, which drove festival sales in October, have come off a little this month, it said. “We expect volume for Two-wheeler players to decline except for Royal Enfield,” the brokerage said.
Poor GDP data may not hurt sentiment much
Despite a six-year-low GDP growth print, analysts do not expect market participants to press the panic button on Monday, as the market had already priced in a disappointing outcome and many growth projections for the quarter were worse than the actual footprint. The market may, at the most, see a gap-down start on Monday, with no significant follow-up selling, analysts said.
FIIs sell Rs 1,892 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,892 crore on Friday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 954 crore, data suggests.
Sensex on Friday
At the closing bell, the BSE S&P Sensex was down by 336 points or 0.82 per cent to 40,704. The Nifty 50 tumbled down by 95 points or 0.78 per cent at 12,056.
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