Key barometers wiped off gains in early afternoon trade. Sentiment was dented by the Asian Development Bank (ADB) lowering India's growth forecast. The Nifty descended towards 11,850 level. At 12:26 IST, the barometer index, the S&P BSE Sensex, was up 20.02 points or 0.05% at 40,259.90. The Nifty 50 index was up 4.45 points or 0.04% at 11,861.25. The broader market traded in negative territory. The S&P BSE Mid-Cap index was down 0.02%. The S&P BSE Small-Cap index was down 0.13%. The market breadth was titled in the favour of sellers. On the BSE, 843 shares rose and 1301 shares fell. A total of 173 shares were unchanged. In Nifty 50 index, 25 stocks advanced while 25 stocks declined. Economy: The Asian Development Bank (ADB) on Wednesday announced it trimmed its forecasts for economic growth in developing Asia this year and next year as growth in the People's Republic of China (PRC) and India is weighed down by both external and domestic factors. India's growth is now seen at a slower 5.1% in fiscal year 2019 as the foundering of a major non-banking financial company in 2018 led to a rise in risk aversion in the financial sector and a credit crunch. Also, consumption was affected by slow job growth and rural distress aggravated by a poor harvest. Growth should pick up to 6.5% in fiscal year 2020 with supportive policies. In September, ADB forecast India's GDP to grow 6.5% in 2019 and 7.2% in 2020. Derivatives: The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 3.65% to 13.7675. The Nifty December 2019 futures were trading at 11,907.55, a premium of 42.15 points compared with the spot at 11,865.40. On the options front, the Nifty option chain for 26 December 2019 expiry showed maximum call open interest (OI) of 28.71 lakh contracts at the 12,000 strike price. Maximum put OI of 30.48 lakh contracts was seen at 12,000 strike price. Buzzing Index: The Nifty Metal index was down 0.58% at 2,501.35, sliding for the second session in a row amid growing uncertainty of US China trade deal. Hindustan Copper (down 2.41%), National Aluminium Company (down 1.74%), Vedanta (down 1.03%), Hindalco Industries (down 1.01%), Jindal Steel & Power (down 1%), Steel Authority of India (down 0.92%) and Hindustan Zinc (down 0.41%) were top losers in metal segment. Stocks in Spotlight: HDFC Asset Management Company (HDFC AMC) rose 1.65% to Rs 2,938.65 after a foreign brokerage initiated coverage on the stock with a 'Buy' rating and a price target of Rs 3,435. The brokerage reportedly stated that the company is in a good position to capture positive changes in the Indian AMC industry. It is set to provide a high return on equity (RoE) business and investors may expect a dividend payout ratio of 80% during FY 2020-22. HDFC AMC was also able to weather out regulatory challenges successfully over a period, it added. HDFC AMC tanked 15.99% in the past five trading sessions to settle at Rs 2,890.90 yesterday, 10 December 2019, from its close of Rs 3,441.45 on 3 December 2019. The company's promoter, Standard Life Investments, concluded its offer for sale (OFS) last week. It sold 3.10% stake via OFS. The floor price for the sale was set at Rs 3,170 per equity share. Future Supply Chain Solutions rose 1.32% to Rs 508 after the Competition Commission of India on Tuesday approved the proposed acquisition of 22% stake in the company by Nippon Express (south Asia & Oceania). In September, Nippon Express Co., acting through its subsidiary Nippon Express (South Asia & Oceania) (Nippon Express), Japan's leading global logistics player, agreed to acquire a 22% stake in Future Supply Chain Solutions (FSC). This transaction is a combination of primary issuance and secondary purchase from an existing investor. GHCL gained 2.79% after credit rating agency India Ratings & Research affirmed IND A1+ on company's commercial paper of Rs 100 crore. The rating agency also affirmed IND A1 with positive outlook to GHCL for Issuer rating. The company further added that the proceeds from commercial paper will be used for fulfilling working capital requirements o refinancing of debt/bridge finance/capital expenditure. Powered by Capital Market - Live News |