Dec 13

Daily Market Commentary : 12th Dec. 2016

The Benchmark indices Sensex, Nifty ended the day in red, touching the day’s low. Both indices dropped by 1%. Automobile, bank and cement stocks were the worst hit segments. The key trigger was the GST, wherein the committee was unable to reach a consensus on the roll out. There is a possibility that the government might fail to meet its April 1, 2017 deadline.

A weak Index of Industrial Production (IIP) data, which was released last Friday, added to the low, stating that the overall industrial output has reduced by 1.9% yoy in October.

Nifty closed with a gained 91 points and closed at 8,170, while BSE Sensex ended with a gain of 230 points at 26515.

On the global front, most Asian indices closed in red, while Japan’s Nikkei 225 ended marginally up in green. In Europe, the FTSE 100 was down 0.20%. CAC 40 was down 0.11% and DAX was down 0.32% while, the US Nasdaq was up 0.50%.

State Bank of India sold 3.9% stake in its life insurance venture SBI Life to private equity firms KKR and Temasek. The deal values SBI Life at Rs 460 bn.

Oil and Natural Gas Corp is awaiting nod of upstream regulator DGH to commence investing USD5.07bn in bringing to production oil and gas discoveries in its Bay of Bengal block KG-D5.

Natco Pharma launches Tamiflu oral capsules in US market; resulting in stocks gaining 0.5%.

JSW Energy is in talks to buy Monnet Power’s Odisha plant, resulting in stocks gaining 1.19%.

NMDC shares up 1.94% as Q2 net profits were above estimates.

Life Insurance Corporation (LIC) has hiked its stake in Bata India by 2.03%, taking its total shareholding to 7.05% in the company.

Bajaj Finance Limited stocks are down 5.75% which is primarily the ensuing impact of demonetisation.

Gold was trading at Rs 27,576 per 10 gms and silver was trading at Rs 41,221 per kg.

The Indian rupee is trading at 67.58 to the US dollar.

Out of 1401 stocks traded on the NSE, 909 declined and 427 advanced today.

Top 5 Nifty Gainers: Tata Motors (2.21%), Wipro (1.31%), Maruti Suzuki (0.97%), ITC Ltd. (0.71%) and Reliance Ind. (0.68%).

Top 5 Nifty Losers: Tata Steel (-1.34%), Lupin Ltd. (-1.12%), BHEL (-0.98%), Asian Paints (-0.91%) and ICICI Bank (-0.55%)

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