Markets end flat amid rangebound trade; Midcaps outperform

Benchmark indices ended flat, amid lacklustre trades, as investors maintained a cautious stance ahead of the expiry of December F&O contracts on Thursday.

Further, selling by foreign funds also weighed on market sentiment.

After closing at their highest level in nearly 4 weeks in the previous session, the S&P BSE Sensex ended at 26,079, up by 45 points while the Nifty50 closed at 7,929, up by 4 points.

In the broader markets, BSE Midcap index outperformed the benchmark indices to end with 0.4% gains. However, BSE Smallcap index finished 0.1% lower.

Kunal Bothra, Head – Advisory, LKP Securities said, “After a volatile session, the indices managed to close flat again. Once again the grind continues in the indices. 7,900 now becomes a crucial pivot.

Interestingly the discount on Nifty futures reduced dramatically today, which could indicate that selling pressure may probably have abated from a short term view. Bank Nifty outperformance led by few names such as Axis lends the much needed support.

He further said, “7,930-7,980 is a zone of resistance. Only once we cross this zone, I expect another surge of 3% atleast on the index in the very near term.”

Further, in absence of any fresh triggers, investors would watch the movement in crude oil prices, which stabilized slightly on Tuesday after slipping more than 3% on Monday.

In another development, the Supreme Court of India today upheld the liquor ban policy of Kerala government that restricts the service and consumption of liquor at bars in five star hotels only.

Reacting to the apex court’s order, breweries and distilleries stocks came under pressure.

Meanwhile, foreign portfolio investors sold shares worth a net Rs 302.62 crore on Monday, as per provisional data released by the stock exchanges.

However, the Domestic institutional investors bought shares worth a net Rs 987.82 crore on Monday, as per provisional data.

COMMODITY & CURRENCY CORNER

Global crude oil prices rose up slightly. The international Brent was quoting at $36.82/barrel, up by 20 cents, after falling on Monday to nearly its 11 year low.

Gold has also inched up in today’s trades; however, the continuous slide in the crude oil prices has put pressure on the yellow metal.

Snapping its 8 day rising streak, the rupee traded lower by 17 paise at 66.36 against the dollar in early trade at the Interbank Foreign Exchange on month-end demand for the US currency from importers amid capital outflows.

KEY STOCKS

Auto stocks finished higher ahead of their December sales numbers that the auto companies are slated to release later this week.

Bajaj Auto, Hero Motocorp, and M&M gained between 1%-1.5% each while Maruti Suzuki ended flat.

Another stellar performer for the day was GAIL (India).

The stock finished up by 1% on the buzz of lower imported gas prices. With new prices, GAIL's transmission volumes, margins and Petchem segments' profitability can all get a boost.

HDFC gained nearly 1% amid media reports that it has sold 2.12% stake in Indraprastha Medical Corporation through the secondary market.

Lupin gave up its initial gains and ended flat with positive bias after the company announced it has received approval for generic Femhrt tablets.

Among its peers, Sun Pharma, Cipla and Dr Reddy's Labs ended lower between 0.1%-0.5% each.

Breweries & Distilleries stocks suffered losses following the Supreme Court order on liquor ban in Kerala. United Breweries (4%), United Spirits (3%), Tilaknagar Industries (2% ), Jagatjit Industries (4% ), Empee Distilleries (3%) all ended lower.

State-owned oil marketing companies: Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) finished flat as crude oil prices rose globally.

However, reports suggest that they might jointly set up a mega refinery at Ratnagiri in coastal Maharashtra.

Saregama India gave up its initial gains to end 0.6% lower after Reliance Capital purchased a total of 11.88 lakh shares of the company in bulk deals on the BSE and NSE yesterday.

Reliance Capital ended over 2.5%.

Reliance Infrastructure (RInfra) rose 3.3% after the company said it is in advanced talks with bidders to sell its cement business.

National Building Construction Corp dropped 0.3%.

However, the stock gained intraday on reports that the company bagged an order worth Rs 328.08 crore from Nabinagar Power Generating Company for a township project near its super thermal power project.

Nabinagar Power Generating Company is a joint venture between NTPC and Bihar State Power Generation Co.

Shares of Educomp Solutions closed nearly 1% higher on the BSE after the company in a release said its subsidiary Educomp Infrastructure & School Management Limited has executed agreements to sell one of its land and building to third party.

Shares of Suven Life Sciences ended up nearly 3% on the BSE after the company said it has received product patents one each from Europe and Macau corresponding to the new chemical entities for the treatment of disorders associated with neurodegenerative diseases.

BHEL lost 1.5% after Morgan Stanley raised concerns over BHEL’s Yadadri thermal project, as per media reports.

Other notable losers were HUL, ITC, Coal India, L&T, all ended lower between 0.5%- 1.5%.

GLOBAL MARKETS

Barring Taiwan Weighted, all other Asian equities finished in the positive zone as the crude oil prices stabilized in today’s trade.

Nikkei ended with 0.5% gains while Hang Seng finished with 0.3% gains. Shanghai Composite rose 0.8% thus aiding the rally across the Asian peers.

European markets also started on a positive footing tracking gains in Asian markets. All major European indices were up between 0.5%- 1.6% each.