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Taking Stock: Market pauses for GDP numbers, clarity on US-China trade deal

November 29
17:06 2019

Indian equity benchmarks ended lower by nearly a percent on November 29 as investors took money off the table ahead of the country’s second-quarter GDP numbers while weak global sentiment, too, weighed on the sentiment.

India’s economy was seen growing at 4.7 percent in the July-September quarter, its weakest pace in more than six years, according to a Reuters poll published on November 28.

On the global front, most markets suffered losses as worries that the new US law backing Hong Kong protesters will hit the chances of a US-China trade deal grew stronger.

“Profit-booking ahead of economic data and selling pressure in Asian peers due to risk of retaliation from China add volatility in the market. The recent rally has lifted the market to supreme valuation which may limit the headroom of key indices to perform well in the short-term. Consequently, investors are likely to shift focus for quality mid and small caps, which are likely to outperform in the near-term,” said Vinod Nair, Head of Research at Geojit Financial Services.

Snapping the winning run of the last two consecutive sessions, market barometer Sensex closed with a strong loss of 336 points, or 0.82 percent, at 40,793.81 with 27 stocks in the red and only three – Bharti Airtel, HDFC Bank and NTPC – in the green.

Nifty shut shop at 12,056.05, down by 95 points or 0.78 percent. Among the 50 stocks in the index, 42 incurred losses.

For the week, both Sensex and Nifty rose by over a percent.

Second rung indices – BSE Midcap (up 0.16 percent) and Smallcap (up 0.47 percent) – outperformed the benchmark on November 29.

The overall market capitalisation of BSE-listed firms dropped to Rs 1,54,75,077.14 crore from Rs 1,55,57,484.15 crore on November 28, making investors poorer by Rs 82,407 crore in a single day.

Top Nifty gainers: Bharti Infratel (up 6.70 percent), Adani Ports (up 2.25 percent), and Bharti Infratel (up 1.12 percent).

Top Nifty losers: Zee Entertainment (down 7.88 percent), Hindustan Unilever (down 2.55 percent), and Dr. Reddy’s Laboratories (down 2.38 percent).

Stocks and sectors:

BSE Metal, Auto and Energy fell over a percent each, while FMCG, Basic Materials, IT, Capital Goods and Oil & Gas slipped almost 1 percent.

However, BSE Telecom bucked the trend to close 2.54 percent higher. BSE Realty rose about a percent.

As many as 245 stocks, including Reliance Power, Reliance Infrastructure and Indiabulls Real Estate, hit their lower circuits on the BSE.

Moreover, 132 stocks, including Chennai Petroleum Corporation, Jain Irrigation Systems and Dynamatic Technologies hit their 52-week lows on the BSE.

Long Buildup: Bharti Infratel, NBCC, Adani Ports

Short Buildup: Motherson Sumi Systems, Yes Bank, Ramco Cements

Stocks in news:

Yes Bank share price fell 2.5 percent ahead of the private lender’s board meeting to consider fundraising.

Hindustan Construction Company (HCC) share price rose 4 percent after the company won a challenge in the Supreme Court to set aside Section 87 of the Arbitration and Conciliation Act.

Lemon Tree Hotels share price rose 3.28 percent after it launched a new property under its Red Fox brand in Andhra Pradesh’s Vijayawada.

ICICI Securities share price jumped 5 percent after the company settled a case with the market regulator Securities and Exchange Board of India (SEBI).

Bharti Airtel share prices rose 1 percent after reports that it has submitted conditional bids of around Rs 9,500 crore for Reliance Communications’ telecom assets, including spectrum, mobile towers and optical fibre.

Technical View:

Nifty formed a bearish belt hold pattern on daily charts whereas, on the weekly scale, it formed a bullish candle as the index gained more than 1 percent for the week.

In the next couple of sessions, if the index manages a close below 11,990 level, the correction shall get accelerated further. In that scenario, an ideal target on downsides can initially be around 11,800 levels, experts said.

Three levels: 12,017, 12,130, 12,147

Max Call OI: 12,500, 12,000

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