Market pares gains; banks correct

Market pares gains; banks correct

Jan 10, 2020 09:01 IST capital market

The Sensex and the Nifty sharply pared gains in mid-afternoon trade, dragged by weakness in banks shares. The Nifty slipped below 12,250.

At 14:34 IST, the S&P BSE Sensex, was up 73.56 points or 0.718% at 41,525.91. The Nifty 50 index was up 18.4 points or 0.15% at 12,234.30.

The S&P BSE Mid-Cap index was up 0.34% while the S&P BSE Small-Cap index was up 0.33%.

The market breadth was positive. On the BSE, 1357 shares rose and 1084 shares fell. A total of 180 shares were unchanged. In Nifty 50 index, 31 stocks advanced while 19 stocks declined.

Buzzing Index:

The Nifty Bank index fell 0.25% to 32,010.75. Among private sector banks, RBL Bank (down 2.15%), ICICI Bank (down 1.18%), Federal Bank (down 1.11%), IndusInd Bank (down 1%) and Axis Bank (down 0.57%) advanced.

HDFC Bank (up 0.64%), Kotak Mahindra Bank (up 0.96%) and City Union Bank (up 1.25%) declined.

Yes Bank was down 4.33% after the media reported that Uttam Prakash Agarwal resigned as an independant director of the bank.

Uttam Prakash Agarwal was appointed as an independent director on the board of Yes Bank with effect from 14 November 2018 for a period of 5 years. The media reported that the early resignation was due to corporate governance concerns at the bank.

Yes Bank is banned from trading in NSEs F&O segment after the security crossed 95% of market wide position limit.

The Nifty Auto index was up 0.74% at 8,215.70, extending yesterdays gains. TVS Motors Company (up 1.07%), SML Isuzu (up 0.72%), Eicher Motors (up 0.62%), Maruti Suzuki India (up 0.58%), Mahindra and Mahindra (up 0.55%), Bajaj Auto (up 0.31%) and Hero MotoCorp (up 0.28%) edged higher.

Ashok Leyland (down 1.4%) and Tata Motors (down 0.52%) declined.

The Society of Indian Automobile Manufacturers (SIAM) released sales data for the month of December 2019. Domestic car sales fell 8.4% to 1,42,126 units in December 2019 over December 2018. Sales of commercial vehicles witnessed a dip of 12.32% YoY in December 2019 to 66,622 units. Two wheeler sales fell 16.6% to 10,50,038 units in December 2019 over December 2018.

Stocks in Spotlight:

Housing Development Finance Corporation (HDFC) was down 0.48%. HDFC said the company has completed the acquisition of 50.80% shares of Apollo Hospitals Group in Apollo Munich Health Insurance Company for Rs 1,485 crore. It also acquired 0.36% stake in Apollo Hospitals held by employees for Rs 10.67 crore. Apollo Munich has been renamed to HDFC ERGO Health Insurance, which will operate as a subsidiary of HDFC.

TCS up 0.08%. The IT major said it has expanded its partnership with Vipps AS, Norways leading player in the payments and identification segment, to leverage TCS Machine First Delivery Model (MFDM) and cloud services to accelerate the latters growth and digital journey.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.579% at 14:25 IST compared with 6.524% in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was trading at 71.105, compared with its previous closing low of 71.215.

In the commodities market, Brent crude for March 2020 settlement was down 9 cents a barrel at $65.28 per barrel. The contract declined 0.11% to settle at $65.44 a barrel in previous session.

MCX Gold futures for 5 February 2019 settlement declined 0.13% to Rs 39,779.

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