Sensex Today: Airtel, Reliance Industries help Sensex end in green; Nifty closes below 12,050

Market has opened on a bullish note Monday, tracking strong Asian equities, BSE Sensex trades 130 points higher at 40,924 and NSE Nifty trades 33 points higher at 12,089 level.

Net investment of equity and debt reported by foreign portfolio investors (FPIs) turned negative with net selling logged at Rs 1,892.29 crore from Indian equities while domestic institutional investors (DIIs) bought Rs 953.62 crore on Friday last week.

 

Oil prices rebounded, tracking global shares that traded higher on Monday.

Hang Seng coupled with Shanghai Composite were strongly bullish, followed by Nikkie, KOSPI, Straits Times and Taiwan index that traded marginally positive. MSCI's index of Asia-Pacific shares outside Japan was up 0.17%. U.S. stock futures gained 0.31% to near record highs.

Brent crude futures too rose 1.16% to $61.19 a barrel.

 

On the sectoral front, except media that traded 1.11% up, all the other sector-based indices traded marginally in the red on Monday.

 

DHFL shares fell nearly 5% to lower circuit on Monday following reports that Reserve Bank of India (RBI) on Friday filed insolvency application against cash-strapped Housing Finance Corporation (HFC) at Mumbai bench of the National Company Law Tribunal (NCLT).

The central bank has filed an application for initiation of corporate insolvency resolution process against DHFL under Section 227 of the Insolvency and Bankruptcy Code (IBC), 2016," RBI said in a press release.

Shares of DHFL fell 4.8% to the intraday low of Rs 19.70 on BSE, compared to the previous closing price of Rs 20.70.

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Mukesh Ambani-led Reliance Jio has reportedly emerged as the highest bidder for mobile tower and optical fibre assets of Reliance Infratel by placing bids of around Rs 3,600 crore. This was followed by Rs 1,800 crore bid pulled by Bharti Airtel

"Reliance Infratel's tower and fibre is likely to go to Reliance Jio as its bid of Rs 3,600 crore is the highest and the company has committed to make the payment in 60 days. Bharti Airtel has placed a bid of Rs 1,800 crore for the same," a banking source said.

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On Monday, telecom shares traded higher, following reports that three telecom majors namely Reliance Industries, Bharti Airtel and Vodafone Idea plan to raise the mobile calls and data charges across its pre-paid services.

The telecom operator's announcement comes following the Supreme Court's (SC) ruling on adjusted gross revenue (AGR). Airtel took a staggering hit of Rs 23,045 loss in Q2 loss ending September 30 due to provisioning of Rs 28,450 crore in the aftermath of the SC's judgement.

Where Reliance Jio has announced a hike in mobile tariffs by up to 40% to applicable from December 6, Vodafone-Idea plans to raise the mobile calls and data charges by around 20% across its pre-paid services from December 3. Similarly, Airtel said in a statement," "Airtel's new plans, represent tariff increases in the range of a mere 50 paise per day to Rs 2.85 per day and offer generous data and calling benefits," it added.

Vodafone Idea shares rose 23.57% to day's high of Rs 8.44. This was followed by 9.82% rise in Airtel shares to a new 52 week high of Rs 485.75 today. Shares of Reliance Jio parent RIL too rose 4.07% to a new 52 week high of Rs 1,614 today.

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Foreign investors remained net buyers in the Indian capital market for the third straight month in November, putting in Rs 22,872 crore on net basis during the month, according to depositories data.  A net sum of Rs 25,230 crore was flowed into equities by FPIs in November. FPIs had invested a net sum of Rs 16,037.6 crore in October and Rs 6,557.8 crore in September.

Although FIIs turned net sellers on last Friday with net selling logged at Rs 1892 crore.

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Auto stocks witnessed selling following the November monthly data announcement.

Where Maruti reported monthly sales volume at 1,39,133 units, dropping 3.3% on a yearly basis. Eicher Motors reported yearly fall by 8% by producing 65,744 units.

This was followed by 71,050 units reported by M&M registering a fall of 12% YoY. Tata Motors November domestic sales down 25% at 41,124 units. Hyundai Motor India Ltd's domestic sales were up 2 per cent at 44,600 units as against 43,709 units in November 2018.

Honda Cars on Sunday reported a 50% decline in its domestic car sales to 6,459 units for the month of November.

While M&M and Tata Motors share price traded marginally higher on Nifty Auto, that traded 0.42% lower, shares of Eicher Motors fell the most, at 2.28% decline, followed by nearly 1% fall in Maruti stock price. Honda Seil Products traded 1.48% lower.

Share Market Today: Domestic equity market erased early gains to trade on a flat-to-positive on Monday, backed by heavy selling pressure across the sector-based indices and weak economic data reported last week. Sensex now trades merely 40 points higher at 40,835 and Nifty trades at 12,065, rising 9 points higher against the previous close.

Top gainers in the first hour of session Monday are namely Bharti Airtel, Grasim, Reliance Industries, Bharti Infratel and Zee Entertainment. The worst performers today are Bajaj Finance, Tech Mahindra, Eicher Motors, Bajaj Finserv and Dr Reddy.

Market turned flat amid weak domestic cues. Quarterly GDP growth figures for the second quarter of this fiscal (July-September 2019) showed GDP falling to 6-year low at 4.5%. This coupled with weak auto monthly sales growth confirmed fears of a deepening slowdown in the economy and kept investors sentiments weak.

 

Rupee, the local currency opened at 71.78 per US dollar, against the Friday's close of 71.74 per dollar amid increased demand for American currency and higher crude oil prices.

 

The Reserve Bank is likely to cut interest rates for the sixth straight time on December 5 to support growth that has continued to slip to more than six-year low on slump in manufacturing, bankers and experts said. Also, the lower GDP growth means a rate cut is on the horizon to stimulate the economy on the course of a recovery.

Ujjivan Small Finance Bank (USFB) initial public offering (IPO) is all set to hit the Dalal Street today and closes for subscription by December 4 (Wednesday). The lender is aiming to raise Rs 750 crore through the IPO, so as to bolster its Tier-I capital base to meet its future capital requirements, as per objectives defined by the company. Price band for the IPO has been fixed at Rs 36-Rs 37.

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Shares of YES Bank opened at Rs 70, but later fell 7.6% to the intraday low of Rs 63.10 in  early trade on Monday after the private sector lender announced it has decided to raise up to $2 billion through preferential allotment of shares from several investors.  YES Bank stock has fallen 2.64% in the last 2 sessions.

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RBL Bank shares fell 2.93% to the intraday low of Rs 362.85 after the lender announced that  it will raise Rs 825.8 crore through the private placement of shares. The bank will issue 24,238,310 shares at a price of Rs 340.7 per share.

As per the lender's filing, Bajaj Finance and East Bridge Capital Master Fund will get 44 lakh shares. FEG Mauritius will receive 25 lakh shares, lshana Capital Master Fund will receive 63 lakh shares (1.39 percent) and WF Asian Reconnaissance Fund will receive 65 lakh shares.

 

Share Market Today: BSE Sensex currently trades mere 9 points higher at 40,803 level and NSE Nifty trades flat at 12,056. In terms of sector-based indices, media and metal indices traded marginally higher, while all the other indices traded in red today, with over 1% fall in pharma and IT scrips.

Suven Life Sciences share price declined 19.6% to the intraday low of Rs 253.1 on Monday after the pharmaceuticals firm announced it did not meet the pre-specified primary endpoint in proof of concept (PoC) phase two study of evaluating the efficacy, safety and tolerability of Masupirdine (SUVN-502).

“We are very disappointed with the outcome of this trial but the findings present an important step forward in further exploration of the potential therapeutic effects of Masupirdine (SUVN-502) in Alzheimer's Disease (AD) and Behavioral & Psychological Symptoms in Dementia (BPSD),” Venkat Jasti, CEO of Suven said.

"We will work with regulators and potential partnering companies in the design and conduct of future studies for further exploration of the potential of Masupirdine (SUVN-502)," he added.


 

Share price of SML Isuzu rose 1.5% to the day's high of Rs 529.60 after the auto maker reported a 24.3% drop in total sales for November, at 521 units compared to 688 units sold in a year ago period.

 

TVS Motor company's total sales come in at 2.66 lakh units for November month as against 3.20 lakh units reported in the same moth last year, registering a drop of 16.7%.


Following the announcement, share price of TVS Motors has declined 3.17% to the intraday low of Rs 461.9 on the BSE.