Key market barometers pared gains in mid-afternoon trade. At 14:29 IST, the barometer index, the S&P BSE Sensex, was up 43.66 points or 0.11% at 40,488.81. The Nifty 50 index was up 7.45 points or 0.06% at 11,928.95.

Sentiment was fragile as IHS Markit expects India's real GDP growth in 2019-20 fiscal to be slightly below 5%. Gains were also capped as the Reserve Bank of India (RBI) unexpectedly left interest rates unchanged on Thursday. The move was driven by the rising inflationary pressure and gradual improvement in monetary transmission.

In the broader market, the S&P BSE Mid-Cap index was up 0.08% and the S&P BSE Small-Cap index was down 0.27%.

The market breadth was negative. On BSE, 1029 shares advanced while 1328 shares declined. A total of 189 shares were unchanged. In Nifty 50 index, 27 stocks advanced and 23 stocks declined.

Economy:

India's real GDP growth in 2019-20 fiscal is expected to be slightly below 5% as the impact of stimulus measures will take time to filter through to the economy, IHS Markit has said. Financial sector fragilities continue to weigh on India's economic growth momentum, with the high level of non-performing loans on the balance sheets of the public sector banks, constraining their new lending, IHS said in a report.

Buzzing index

The Nifty PSU Bank index advanced 0.18% to 2,465.20. The index fell 6.11% in the past two sessions.

Allahabad Bank (down 2.24%), Central Bank of India (down 1.27%), Syndicate Bank (down 1.25%), IDBI Bank (down 1.01%), Corporation Bank (down 0.83%), Bank of Baroda (down 0.51%), Bank of Maharashtra (down 0.42%), Andhra Bank (down 0.28%) and Indian Bank (down 0.17%) declined.

Canara Bank (up 2.55%), Union Bank of India (up 1.82%), Punjab & Sind Bank (up 1.55%), Punjab National Bank (up 1.41%), United Bank of India (up 1.03%), UCO Bank (up 0.92%), State Bank of India (up 0.34%) and Bank of India (up 0.22%) advanced.

Stocks in Spotlight:

JSW Steel advanced 0.67% to Rs 255.75. The company's crude steel production fell 7% to 12.90 lakh tones in November 2019 from 13.90 lakh tones in November 2018. The company showed in November, 2019 a sequential month on month growth of 3% in crude steel production.

The blast furnaces, which were temporarily shut down in October, 2019 due to slowdown in auto demand has recommenced operations in the last week of November, 2019, JSW Steel said in an exchange filing.

Coffee Day Enterprises slumped 10.60% to Rs 43. Media reports suggested that The company's sale of its technology park to Blackstone Group is stalled as one of its creditors hasn't approved the deal. Yes Bank hasn't issued the so-called no objection certificate as it's seeking assurances on repayments of other loans taken by Coffee Day, the reports added.

Dish TV India surged 9.63% to Rs 13.77 after the company reiterated its intention to repay all its debts as and when they become due in the future.

Care Ratings has downgraded the short-term bank facilities rating to 'CARE D' from 'CARE A4+'. The agency in its rationale has taken into consideration the default by Dish TV India in payment of its short-term loan amounting to Rs 250 crore.

Following the development, Dish TV clarified that it has been drawing on its internal cash accruals to fund its capital expenditure for more than six quarters now. In addition, the company has also serviced its debt and interest obligations, on a consolidated level, to the tune of Rs 850 crore in the current fiscal. Debt and interest payment obligations falling due after the particular incident of non-service have also been fulfilled on time.

Numbers to watch:

The yield on 10-year benchmark federal paper rose to 6.665% at 14:33 IST compared with 6.661% in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 71.125, compared with its close of 71.20 during the previous trading session.

MCX Gold futures for 5 December 2019 settlement fell 0.11% to Rs 37,656.

In the commodities market, Brent crude for February 2020 settlement was down 0.37 cents at $64.02 a barrel. The contract rose 1.57% or $1 to settle at $64.39 a barrel during the previous trading session.

The benchmark extended gains and hit fresh intraday high in afternoon trade. At 13:27 IST, the barometer index, the S&P BSE Sensex, was up 174.04 points or 0.43% at 40,619.19. The Nifty 50 index was up 56.35 points or 0.47% at 11,977.85.

In the broader market, the S&P BSE Mid-Cap index was up 0.55% and the S&P BSE Small-Cap index was down 0.12%.

The market breadth was negative. On BSE, 1112 shares advanced while 1130 shares declined. A total of 178 shares were unchanged. In Nifty 50 index, 36 stocks advanced and 14 stocks declined.

Economy:

India's real GDP growth in 2019-20 fiscal is expected to be slightly below 5% as the impact of stimulus measures will take time to filter through to the economy, IHS Markit has said. Financial sector fragilities continue to weigh on India's economic growth momentum, with the high level of non-performing loans on the balance sheets of the public sector banks, constraining their new lending, IHS said in a report.

Buzzing Index:

The Nifty IT index slipped 0.47% to 15,218.15, extending losses for second session. The index has fallen 0.97% to 15,218.15 from a recent closing high of 15367.50 on 5 December 2019.

TCS (down 1.8%), HCL Technologies (down 1.33%), Persistent Systems (down 1.29%), Tech Mahindra (down 0.74%) and Wipro (down 0.31%) declined.

Hexaware Technologies (up 1.17%), MphasiS (up 1.09%), Infosys (up 0.75%), Oracle Financial Services Software (up 0.38%) and MindTree (up 0.09%) advanced.

Stocks in Spotlight:

Maruti Suzuki rose 1.99% after the car major said it has increased its production in November by 4.33% year-on-year.

Tata Motors advanced 1.11% to Rs 163.30. Jaguar Land Rover retail sales in November 2019 were 46,542 vehicles, down 3.4% compared to November 2018. Sales continued to improve in China and North America while in the UK, Europe and overseas market (comprising largely of Russia and MENA) fall in sales continued to linger.

ITC fell 0.53% to Rs 242. ITC said that the company has acquired, in the first tranche, 100 equity shares of Rs 10 each and 1,864 Compulsorily Convertible Preference Shares of Rs 10 each of Delectable Technologies, representing 11.15% of its share capital on a fully diluted basis. Delectable Technologies is engaged in fabricating vending machines and app based sale of FMCG products through such machines.

Axis Bank advanced 1.26% to Rs 726. The private sector bank informed about the resignation of Jairam Sridharan, group executive & chief financial officer and key managerial personnel of the Bank. It said that he would like to pursue other career opportunities and as such has resigned from the services of the Bank.

Foreign Markets:

European stocks traded lower while Asian stocks were mixed on Monday as weak Chinese export data highlighted the detrimental impact of its prolonged trade war with the US.

Chinese exports declined in November for the fourth consecutive month, falling 1.1% year-on-year. Imports, on the other hand, rose 0.3% as compared to a year earlier.

Beijing's trade discussions with Washington have yet to yield a much-touted phase one agreement ahead of a key deadline for additional tariffs on Chinese exports to the U.S. on Dec. 15.

Japan's economy grew at an annualized rate of 1.8% in the July to September quarter, according to revised data from the country's Cabinet Office on Monday. That was sharply higher than the initial estimate of a 0.2% expansion.

French Finance Minister Bruno Le Maire has said France is ready to take threats from U.S. President Donald Trump to impose tariffs on French goods to the World Trade Organization (WTO), amid a row over French taxes on American internet giants.

In US, markets closed sharply higher on Friday after the employment report from the Labor Department beat expectations, showing an estimated 266,000 new jobs created in November, the most since January. The unemployment rate fell to a 50-year low to 3.5% from 3.6%.

Investors also remained optimistic about the chances of a US-China trade deal, even though the deadline that will see import duties increased looms on 15 December.

Key barometers traded sideways with modest gains in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 101.58 points or 0.25% at 40,546.73. The Nifty 50 index was up 26.2 points or 0.22% at 11,947.70.

Gains were capped as IHS Markit expects India's real GDP growth in 2019-20 fiscal to be slightly below 5%. Sentiment was also fragile as the Reserve Bank of India (RBI) unexpectedly left interest rates unchanged on Thursday. The move was driven by the rising inflationary pressure and gradual improvement in monetary transmission.

In the broader market, the S&P BSE Mid-Cap index was up 0.58% and the S&P BSE Small-Cap index was down 0.08%.

The market breadth was negative. On BSE, 1054 shares advanced while 1087 shares declined. A total of 180 shares were unchanged. In Nifty 50 index, 35 stocks advanced and 15 stocks declined.

Economy:

India's real GDP growth in 2019-20 fiscal is expected to be slightly below 5% as the impact of stimulus measures will take time to filter through to the economy, IHS Markit has said. Financial sector fragilities continue to weigh on India's economic growth momentum, with the high level of non-performing loans on the balance sheets of the public sector banks, constraining their new lending, IHS said in a report.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, spurted 6.54% to 14.5325. The Nifty December 2019 futures were trading at 11,986, a premium of 29.95 points compared with the spot at 11,956.05.

On the options front, the Nifty option chain for 26 December 2019 expiry showed maximum call open interest (OI) of 22.70 lakh contracts at the 12,000 strike price. Maximum put OI of 32.81 lakh contracts was seen at 12,000 strike price.

Buzzing Index:

The Nifty Pharma index was up 0.89% at 8,028.50, snapping its two days losing streak. The index lost 2% in two trading sessions.

Glenmark Pharmaceuticals (up 1.55%), Piramal Enterprises (up 1.82%) Divi's Laboratories (up 1.81%), Dr Reddy's Laboratories (up 1.56%), IPCA Laboratories (up 1.14%), Sun Pharmaceuticals (up 0.93%), Aurobindo Pharma (up 0.57%) and Cadila Healthcare (up 0.69%) were top gainer in pharmaceutical segment.

Sun Pharma Advanced Research Company (SPARC) advanced 3.51% to Rs 159.10 after Abraxis Bioscience dismissed patent infringement complaint filed against the company. Sun Pharma Advanced Research Company (SPARC) announced that Abraxis Bioscience LLC. has dismissed the patent infringement complaint filed against SPARC regarding SPARC's new drug application for PICS (Paclitaxel injection concentrate for suspension). We are very pleased that Abraxis Bioscience LLC. has withdrawn its infringement claims paving the way for a successful launch as and when we receive necessary regulatory approvals, said Anil Raghavan, CEO of SPARC. SPARC also stated that it will inform the US Food and Drug Administration (USFDA) of the dismissal of the complaint to vacate the 30-month stay. The announcement was made during market hours today, 9 December 2019.

Stocks in Spotlight:

Yes Bank jumped 3.04% to Rs 57.70 ahead of the bank's board meeting to decide on the details of preferential allotment of shares. On 29 November 2019, the bank said that various investors have expressed willingness to subscribe to equity shares of the bank. Among the institutional investors, a top-tier US Fund House, Discovery Capital and Ward Ferry expressed interest in acquiring fresh stake in the bank. Aditya Birla Family Office, Citax Holdings Ltd & Citax Investment Group, GMR Group and Associates, Erwin Singh Braich I SPGP Holdings and Rekha Jhunjhunwala are the five family offices that have expressed interest in subscribing to the equity of the bank.

Shaily Engineering Plastics tumbled 8.88% to Rs 579 after the Goods and Service Tax (GST) authorities carried out search proceedings at the company's Rania unit in Gujarat. The company stated that the authorities have seized some moulds belonging to the company as well its customers as part of the process which is being contested. There has not been any case of evasion of any duty which has been established as of now and the company has not received any show cause notice from the authorities till date. The company further said that investigation and submission by the company is continuing and assured that GST raid will have no impact on routine operations

Key benchmark indices firmed up and hit fresh intraday high in mid-morning trade. The recovery was supported by strength in auto, metal and pharma stocks. The Nifty traded crossed 11,950 level.

At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 128.68 points or 0.32% at 40,573.83. The Nifty 50 index was up 40.85 points or 0.34% at 11,962.35.

The S&P BSE Mid-Cap index was up 0.73%. The S&P BSE Small-Cap index was down 0.2%.

The market breadth turned positive. On the BSE, 1036 shares rose and 921 shares fell. A total of 151 shares were unchanged. In Nifty 50 index, 37 stocks advanced and 13 stocks declined.

Buzzing Index:

The Nifty Auto index was up 1.66% at 7,936.25. The index lost 2.38% in the past two trading sessions.

Tata Motors (up 2.66%), Ashok Leyland (up 1.64%), Mahindra and Mahindra (up 1.55%), TVS Motors Company (up 1.38%), SML Isuzu (up 1.12%), Hero MotoCorp (up 1.1%), Eicher Motors (up 0.98%) and Bajaj Auto (up 0.75%) advanced higher.

Maruti Suzuki India advanced 3.13% to Rs 7096.75 after it announced its production figures for the month of November 2019. The auto maker's total production rose 4.3% to 1.41 lakh units in November 2019 from 1.35 lakh units in November 2018. Over the past nine months from February to October, the company announced production cuts ranging from 8.3% to 34%.

Auto stocks will remain in focus ahead of Society of Indian Automobile Manufacturers (SIAM) data that will be reported this week.

Stocks in Spotlight:

Shares of Goa Carbon were trading 2.2% higher at Rs 207. The company's total calcined petroleum cake production was 15,413.90 MT in November 2019 as compared to total production of 2,213.10 MT in November 2018.

Vodafone Idea extended its losses for second session and traded 5.92% lower after the company's chairman Kumar Mangalam Birla said the company will shut shop if there is no government relief. Birla was responding to a query, posed at an event, about the company's course of action going forward in the absence of government relief. Birla said the Aditya Birla Group will not invest any money in the company in the absence of relief from the government. Birla said the company will have to opt for insolvency route in the absence of relief.

Shares of Vodafone Idea have fallen 15.89% in three trading sessions to its current market price of Rs 6.51 from its recent closing high of Rs 7.74 on Wednesday, 4 December 2019.

Foreign Markets:

Asian shares edged higher on Monday, catching some of Wall Street's Friday's momentum. However gains were capped by concerns about China's economy due to the prolonged Sino-US trade war.

In US, markets closed sharply higher on Friday after the employment report from the Labor Department beat expectations, showing an estimated 266,000 new jobs created in November, the most since January. The unemployment rate fell to a 50-year low to 3.5% from 3.6%.

Investors also remained optimistic about the chances of a US-China trade deal, even though the deadline that will see import duties increased looms on 15 December.

After initial volatility, key benchmark indices traded near the flat line in morning trade. Metal stocks were in demand. The Nifty regained the 11,900 mark after briefly slipping below that level in early trade.

At 10:18 IST, the barometer index, the S&P BSE Sensex, was up 11.1 points or 0.03% at 40,456.25. The Nifty 50 index was up 1.9 points or 0.02% at 11,923.40.

The S&P BSE Mid-Cap index was up 0.3%. The S&P BSE Small-Cap index was down 0.12%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 823 shares rose and 829 shares fell. A total of 118 shares were unchanged. In Nifty 50 index, 28 stocks advanced and 22 stocks declined.

Economy:

India's real GDP growth in 2019-20 fiscal is expected to be slightly below 5% as the impact of stimulus measures will take time to filter through to the economy, IHS Markit has said. Financial sector fragilities continue to weigh on India's economic growth momentum, with the high level of non-performing loans on the balance sheets of the public sector banks, constraining their new lending, IHS said in a report.

Buzzing Index:

The Nifty Metal index was up 0.85% at 2,557.45 amid US-China trade deal optimism. The index fell 2.62% in the past two trading sessions.

Hindalco Industries (up 1.59%), Vedanta (up 1.37%), Steel Authority of India (up 1.31%), Tata Steel (up 1.28%), Jindal Steel & Power (up 0.86%), Hindustan Zinc (up 0.26%), Hindustan Copper (up 0.26%) and NMDC (up 0.14%) edged higher.

Stocks in Spotlight:

KEC International was up 0.51% after the company announced that it has secured new orders of Rs 1,025 crore across its various businesses.

Multi Commodity Exchange of India (MCX) was down 1.6% to Rs 1120 after the company's Chief Financial Officer, Sanjay Wadhwa, resigned from the post with effect from 6 December 2019.

Shares of Dilip Buildcon were up 0.54% at Rs 381.40. The construction company announced that it has received a completion certificate for construction of Dharamkot Bypass in the state of Punjab. The cost of the completed project is worth Rs 346.5 crore.

Key indices are trading lower in early trade on selling in index pivotals. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 64.85 points or 0.16% at 40,380.30. The Nifty 50 index was down 18.20 points or 0.15% at 11,903.30.

The S&P BSE Mid-Cap index was down 0.12%. The S&P BSE Small-Cap index was down 0.33%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 432 shares rose and 402 shares fell. A total of 57 shares were unchanged.

Among stocks, Maruti Suzuki rose 1.99%. Maruti overall sales increased to 141834 in November 2019 from 135946 units in November 2018. Total Passenger Vehicles increased to 139084 units in November 2019 from 134149 units in November 2018.

ITC fell 0.51%. ITC said that the company has acquired, in the first tranche, 100 equity shares of Rs 10 each and 1,864 Compulsorily Convertible Preference Shares of Rs 10 each of Delectable Technologies Private Limited, representing 11.15% of its share capital on a fully diluted basis. Delectable Technologies is engaged in fabricating vending machines and app based sale of FMCG products through such machines.

Allahabad Bank fell 0.89%. Allahabad Bank said its Board of Directors of the Bank in its meeting held on date, inter alia, approved for raising of Tier 2 capital of the Bank by floating Basel III compliant Tier 2 Bonds aggregating upto Rs 1500 crore in one or more tranches during FY 2019-20.

Bank of India fell 0.66%. Bank of India said the board of directors has considered and approved the issuance of upto 125 crore fresh equity shares through QIP, public issue, rights issue, private placement, or such other mode of issue as permitted at an appropriate time. The bank said its board has also approved issuance of such securities (including Tier I, Tier II bonds, preference shares) which may be classified for Tier I and/or Tier II capital on a private placement / public issue basis, in one or more tranches upto an amount of Rs 10,000 crore at an appropriate time.

IRB Infrastructure Developers rose 0.07%. IRB Infrastructure Developers said Board of Directors of the Company has approved the issuance of Secured, Redeemable, Unlisted Non-Convertible Debentures ('NCDs') amounting to Rs 1,400 crore on a private placement basis, being proposed to be allotted in one or more tranches/series, to eligible investors permitted to invest in NCDs under applicable law. The Board has further authorized the Management Administration and Share Transfer Committee of the Board to allot NCDs to eligible investors and to take all such steps which are incidental and ancillary to the issuance of the NCDs.

NBCC (India) rose 0.44%. NBCC (India) said it has received an order from Department of Revenue, Ministry of Finance, Govt. of India for construction of Rajaswa Bhawan, National Tax Headquarters, New Delhi wherein NBCC will work as Project Management Consultant. The estimated project cost is Rs 621 crore (approx.).

Overseas, Asian stocks edged up on Monday, catching some of Wall Street's Friday's momentum. However gains were capped by concerns about China's economy due to the prolonged Sino-US trade war.

In US, stocks closed sharply higher on Friday after the employment report from the Labor Department beat economists' consensus expectations, showing an estimated 266,000 new jobs created in November, the most since January. The unemployment rate fell to a 50-year low to 3.5% from 3.6%.

Investors also remained optimistic about the chances of a US-China trade deal, even though the deadline that will see import duties increased looms on 15 December.

The market further extended losses and hit fresh intraday low in mid-afternoon trade. The Nifty was trading near 11,900 mark. At 14:28 IST, the barometer index, the S&P BSE Sensex fell 380.75 points or 0.93% at 40,398.84. The Nifty 50 index fell 109.65 points or 0.91% at 11,908.75.

The broader market tumbled. The S&P BSE Mid-Cap index was down 1.46%. The S&P BSE Small-Cap index fell 0.95%.

The market breadth was weak. On the BSE, shares 721 rose and 1671 shares fell. A total of 164 shares were unchanged.

The sentiment was subdued after the Reserve Bank of India (RBI) unexpectedly left interest rates unchanged on Thursday. In a surprise move, the RBI decided to hold the rates after delivering five consecutive rate cuts in 2019. The move was driven by the rising inflationary pressure and gradual improvement in monetary transmission.

RBI revised GDP growth downwards to 5% for 2019-20 from 6.1% projected in its October policy. The CPI inflation projection has also been revised upwards to 4.7-5.1% for the second half of FY20 and 3.8-4% for the first half of FY21.

Meanwhile, RBI's consumer confidence survey (CCS) released on Thursday reported a further drop in consumer confidence in November as households remained pessimistic about jobs and the general economic situation. The current situation index (CSI) dropped to 85.7 last month from 89.4 in September. The future expectations index (FEI) also fell to 114.5, down from 118 in September.

Consumers' sentiments on the general economic situation and the employment scenario weakened, but their one-year ahead expectations remained in the optimistic terrain for all parameters, except prices; expectations on income one-year ahead improved marginally over the previous survey round, said the RBI survey.

Buzzing Index:

The Nifty Auto index fell 1.63% to 7,812.65. The index has fallen 2.29% in two sessions.

Tata Motors (down 3.22%), Eicher Motors (down 3.02%), Escorts (down 2.51%), Maruti Suzuki India (down 1.53%), Hero MotoCorp (down 1.49%), TVS Motor Company (down 1.47%), Bajaj Auto (down 0.99%) and Ashok Leyland (down 0.39%) declined.

Stocks in Spotlight:

Eris Lifesciences surged 9.98% to Rs 486.55, in an otherwise range-bound market. The stock of the pharmaceutical company was trading at its highest level since July 2019.

This week, the company announced acquisition of the trademark Zomelis, for Vildagliptin-based formulations, and its associated trademarks from Novartis AG, Switzerland, for a consideration of $13 million.

Mahindra & Mahindra (M&M) fell 2.65% to Rs 510.70. The company said it has completed acquisition of 36.63% stake in Meru Travel Solutions in the first tranche as part of its Rs 201.5-crore deal to acquire 55% shareholding in the radio taxi operator.

M&M said it has invested Rs 44.71 crore (in cash consideration) for the acquisition of 36.63% of the equity share capital of Meru. The company has also earned the right to appoint majority of the directors on the board of Meru. Consequently, Meru has become a subsidiary of the company with effect from 5 December 2019. Also subsidiary companies of Meru - Meru Mobility Tech, V-Link Automotive Services, V-Link Fleet Solutions - have in turn become subsidiaries of M&M, it added.

Vascon Engineers rose 2.87% to Rs 12.53. The company has received work order amounting to Rs 132.69 crore from Airports Authority of India.

Numbers to watch:

The yield on 10-year benchmark federal paper rose to 6.646% at 14:15 IST compared with 6.608% in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.41, compared with its close of 71.29 during the previous trading session.

MCX Gold futures for 5 December 2019 settlement fell 0.10% to Rs 38,047.

In the commodities market, Brent crude for February 2020 settlement was up 7 cents at $63.46 a barrel. The contract rose 0.61% or 39 cents to settle at $63.39 a barrel during the previous trading session.

Key equity benchmarks extended losses and hit fresh intraday low in afternoon trade. At 13:45 IST, the barometer index, the S&P BSE Sensex fell 193.41 points or 0.47% at 40,586.18. The Nifty 50 index fell 57.95 points or 0.48% at 11,960.45.

Selling was broad based. The S&P BSE Mid-Cap index was down 0.97%. The S&P BSE Small-Cap index fell 0.58%.

The market breadth was weak. On the BSE, shares 806 rose and 1,374 shares fell. A total of 137 shares were unchanged.

The sentiment was subdued after the Reserve Bank of India (RBI) unexpectedly left interest rates unchanged on Thursday. In a surprise move, the RBI decided to hold the rates after delivering five consecutive rate cuts in 2019. The move was driven by the rising inflationary pressure and gradual improvement in monetary transmission.

RBI revised GDP growth downwards to 5% for 2019-20 from 6.1% projected in its October policy. The CPI inflation projection has also been revised upwards to 4.7-5.1% for the second half of FY20 and 3.8-4% for the first half of FY21.

Meanwhile, RBI's consumer confidence survey (CCS) released on Thursday reported a further drop in consumer confidence in November as households remained pessimistic about jobs and the general economic situation. The current situation index (CSI) dropped to 85.7 last month from 89.4 in September. The future expectations index (FEI) also fell to 114.5, down from 118 in September.

Consumers' sentiments on the general economic situation and the employment scenario weakened, but their one-year ahead expectations remained in the optimistic terrain for all parameters, except prices; expectations on income one-year ahead improved marginally over the previous survey round, said the RBI survey.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 6.41% to 13.3875. The Nifty December 2019 futures were trading at 12,013, a premium of 42.4 points compared with the spot at 11,970.60.

On the options front, the Nifty option chain for 26 December 2019 expiry showed maximum call open interest (OI) of 20.31 lakh contracts at the 12,000 strike price. Maximum put OI of 33.57 lakh contracts was seen at 12,000 strike price.

The option chain indicates that Nifty will stay at 12,000 level till December expiry, 26 December 2019.

Top Gainers & Losers:

Bharti Infratel (up 5.14%), Kotak Mahindra Bank (up 1.60%), Asian Paints (up 1.32%), HCL Technologies (up 0.72%) and Ultratech Cement Company (up 0.69%) advanced.

Zee Entertainment Enterprises (down 4.45%), GAIL (India) (down 3.38%), State Bank of India (down 3.33%), Housing Development Finance Corporation (down 2.17%) and Eicher Motors (down 1.92%) declined.

Buzzing Index:

The Nifty PSU Bank index tumbled 3.68% to 2,479.05. Central Bank of India (down 7.62%), Union Bank of India (down 4.82%), Bank of Baroda (down 4.35%), Canara Bank (down 3.54%), Indian Overseas Bank (down 3.29%), Punjab National Bank (down 3.13%) and Bank of India (down 3.03%) tumbled.

Stocks in Spotlight:

Yes Bank tanked 8.70% to Rs 56.70. Yes Bank said Moody's Investors Service downgraded its long term foreign currency issuer rating to B2 from Ba3. Moody's has also downgraded the bank's long-term foreign and local currency bank deposit ratings to B2 from Ba3, foreign currency senior unsecured MTN program rating to (P)B2 from (P)Ba3, and Baseline Credit Assessment (BCA) and Adjusted BCA to b3 from b1. The outlook on the bank's ratings, where applicable, is negative. Moody's expects Yes Bank's common equity tier 1 (CET1) ratio of 8.7% at the end of September 2019 to come under significant pressure, unless the bank can raise new capital in the next few quarters.

Auto major M&M declined 2.15% to Rs 513.30. M&M said the company acquired 36.63% of the Equity Share Capital of Meru in the first tranche of investment. Consequently, Meru has become a subsidiary of the Company with effect from 5 December, 2019. Subsequently, Meru Mobility Tech Private Limited, V-Link Automotive Services Private Limited and V-Link Fleet Solutions Private Limited, subsidiary companies of Meru, have in turn, also become subsidiaries of M&M.

Bajaj Finance fell 0.10% to Rs 3,983.55. The NBFC said it participated in qualified institutions placement (QIP) of RBL Bank and have been allotted 42.73 lakh equity shares at a price of Rs. 351 per equity shares aggregating to approximately Rs 150 crore.

Telecom provider Bharti Airtel was up by 0.17% to Rs 447.95. S&P maintained its 'BBI' rating on long term-facilities with negative implications due to Rs 34,00 crore setback from Department of Telecom (DoT) litigation will adversely affect the company's growth prospects.

Tata Motors was down by 2.68% to Rs 161.65. The board approved the allotment of 20.16 crore ordinary shares and 23.13 crore warrants, with each warrant carrying a right to subscribe to one ordinary share per warrant, at a warrant price of Rs 150 per piece, on preferential basis to Tata Sons. The paid-up share capital of the firm stands increased to Rs 71,94,948,944 from Rs 67,91,702,130. The announcement was made after market hours yesterday, 5 December 2019.

Maruti Suzuki India fell 1.07% to Rs 6,930.80. The company will recall for certain petrol Smart Hybrid (SHVS) variants of Ciaz, Ertiga and XL6 vehicles manufactured between 1 January 2019 to 21 November 2019. The announcement was made during trading hours today, 6 December 2019.

Dr Reddy's Laboratories rose 2.24% to Rs 2,934.55 after it launched of Deferasirox film-coated tablets, 90 mg and 360 mg, a therapeutically equivalent generic version of Jadenu (Deferasirox) film-coated tablets, 90 mg, 180 mg, and 360 mg, approved by the United States Food and Drug Administration (USFDA). The announcement was made during market hours today, 6 December 2019.

Shares of CSB Bank slumped 9.09% at Rs 270.60 on profit booking after strong listing gains.

Foreign Markets:

Shares in Europe and Asia advanced as investors await employment data out of the U.S. and monitor trade developments between Beijing and Washington.

In US, stocks moved higher on Thursday as investors remained optimistic about prospects for a US-China trade deal despite a looming deadline for the imposition of fresh import tariffs by President Donald Trump.

In economics news, the Labor Department released a report on Thursday showing an unexpected decrease in first-time claims for U.S. unemployment benefits in the week ended November 30th. The report said initial jobless claims slipped to 203,000, a decrease of 10,000 from the previous week's unrevised level of 213,000. With the unexpected decrease, jobless claims fell to their lowest level since hitting 193,000 in the week ended April 13th.

US new orders for manufactured goods rose by 0.3% in October after falling by a revised 0.8% in September, according to a report released by the Commerce Department on Thursday.

Meanwhile, oil prices rose Thursday after OPEC members agreed in principle to another cut to output during the first quarter of 2020. OPEC members are starting their second day of talks on Friday.

Key benchmark indices traded with modest losses in early afternoon trade. The Nifty continued to trade below 12,000. Banks shares were under pressure for second day.

At 12:27 IST, the barometer index, the S&P BSE Sensex, was down 110.17 points or 0.27% at 40,669.42. The Nifty 50 index was down 37.10 points or 0.31% at 11,981.30.

The S&P BSE Mid-Cap index was down 0.60%. The S&P BSE Small-Cap index slipped 0.42%.

The market breadth was weak. On the BSE, 781 shares rose and 1388 shares fell. A total of 132 shares were unchanged. In Nifty 50 index, 12 stocks advanced while 38 stocks declined.

The sentiment was subdued after the Reserve Bank of India (RBI) unexpectedly left interest rates unchanged on Thursday. In a surprise move, the RBI decided to hold the rates after delivering five consecutive rate cuts in 2019. The move was driven by the rising inflationary pressure and gradual improvement in monetary transmission.

RBI revised GDP growth downwards to 5% for 2019-20 from 6.1% projected in its October policy. The CPI inflation projection has also been revised upwards to 4.7-5.1% for the second half of FY20 and 3.8-4% for the first half of FY21.

Meanwhile, RBI's consumer confidence survey (CCS) released on Thursday reported a further drop in consumer confidence in November as households remained pessimistic about jobs and the general economic situation. The current situation index (CSI) dropped to 85.7 last month from 89.4 in September. The future expectations index (FEI) also fell to 114.5, down from 118 in September.

“Consumers' sentiments on the general economic situation and the employment scenario weakened, but their one-year ahead expectations remained in the optimistic terrain for all parameters, except prices; expectations on income one-year ahead improved marginally over the previous survey round,” said the RBI survey.

Buzzing Index:

The Nifty Bank index was down 0.37% to 31,594.10. The index has fallen 1.20% in two sessions.

Among the private sector banks, Yes Bank (down 8.05%), RBL Bank (down 6.68%), IndusInd Bank (down 1.84%), Axis Bank (down 1.14%) and Federal Bank (down 0.92%) declined.

Kotak Mahindra Bank (up 1.38%), HDFC Bank (up 0.94%), City Union Bank (up 0.56%) and ICICI Bank (up 0.47%) advanced.

Among the public sector banks, Union Bank of India (down 3.87%), Bank of Baroda (down 3.67%), State Bank of India (down 3.64%), Andhra Bank (down 3.29%), UCO Bank (down 3.24%), Indian Bank (down 2.97%), Central Bank of India (down 2.86%), Canara Bank (down 2.76%), Punjab National Bank (down 2.49%), Bank of India (down 2.4%), Corporation Bank (down 2.37%), Syndicate Bank (down 2.28%), IDBI Bank (down 1.95%), Bank of Maharashtra (down 1.87%), Allahabad Bank (down 1.53%), Punjab & Sind Bank (down 1.27%) and United Bank of India (down 0.79%) declined.

Stock in Spotlight:

Camlin Fine Sciences surged 6.16% to Rs 62.90 after the company said that the commercial production at Dahej project in Gujarat is most likely to be expected in January 2020. The company said that financial closing for the Dahej project is achieved and 95% of the project is completed. Water trials have been commenced. Trial runs are expected after mechanical completion. A delay of 3-4 weeks is expected due to persistent monsoon.

Nirlon slipped 0.67% to Rs 282.50. The company on Thursday signed a long-term leave and license agreement with J.P. Morgan, the global banking and financial services provider, for premium office space at Nirlon Knowledge Park (NKP) in Mumbai.

J.P. Morgan will take up approximately 1.15 million square feet of office space that is expected to be delivered by the second quarter of 2021. NKP has a site area of 23 acres and is located on Mumbai's Western Express Highway in Goregaon. NKP houses some of the top global and Indian corporates with approximately 1.8 million square feet of IT/ITES office space already licensed

Cadila Healthcare slipped 1.43% to Rs 254.30. The company announced that its API manufacturing facility located at Dabhasa, Gujarat has received an Establishment Inspection Report (EIR). The USFDA had conducted an inspection at the facility from 7 to 11 October 2019. The EIR report stated that the classification of the facility is 'No Action Indicated (NAI)'.

Omaxe was locked in the lower circuit limit of 20 per cent at Rs 144. The stock of real estate company was trading at its lowest level since April 2016.

Key equity market barometers erased early gains and turned negative in mid-morning trade. The Nifty 50 index slipped below 12,000.

Trading sentiment was weak after the Reserve Bank of India (RBI) unexpectedly left interest rates unchanged on Thursday. In a surprise move, the RBI decided to hold the rates after delivering five consecutive rate cuts in 2019. The move was driven by the rising inflationary pressure and gradual improvement in monetary transmission.

RBI revised GDP growth downwards to 5% for 2019-20 from 6.1% projected in its October policy. The CPI inflation projection has also been revised upwards to 4.7-5.1% for the second half of FY20 and 3.8-4% for the first half of FY21.

At 11:27 IST, the barometer index, the S&P BSE Sensex, was down 114.18 points or 0.28% at 40,665.41. The Nifty 50 index was down 35.70 points or 0.30% at 11,982.70.

The S&P BSE Mid-Cap index was down 0.63%. The S&P BSE Small-Cap index slipped 0.42%.

The market breadth turned negative. On the BSE, 826 shares rose and 1196 shares fell. A total of 122 shares were unchanged. In Nifty 50 index, 12 stocks advanced while 38 stocks declined.

Stocks in Spotlight:

Bajaj Finance advanced 0.16% to Rs 3993.95. The NBFC said it participated in qualified institutions placement (QIP) of RBL Bank and have been allotted 42.73 lakh equity shares at a price of Rs. 351 per equity shares aggregating to approximately Rs 150 crore.

V.S.T. Tillers Tractors slipped 0.71% to Rs 1086.15. The company's power tillers sales rose 12.14% to 1238 units in November 2019 from 1104 units in October 2019. It declined 41.27% from 2108 units in November 2018. The total tractor sales slumped 33.72% to 568 units in November 2019 from 857 units in October 2019. It was down 9.55% from 628 units in November 2018.

Foreign Markets:

Overseas, Asian stocks continued to trade higher as traders await news on the US job market and an impending scheduled American tariff hike on Chinese goods.

In US, stocks moved higher on Thursday as investors remained optimistic about prospects for a US-China trade deal despite a looming deadline for the imposition of fresh import tariffs by President Donald Trump.

In economics news, the Labor Department released a report on Thursday showing an unexpected decrease in first-time claims for U.S. unemployment benefits in the week ended November 30th. The report said initial jobless claims slipped to 203,000, a decrease of 10,000 from the previous week's unrevised level of 213,000. With the unexpected decrease, jobless claims fell to their lowest level since hitting 193,000 in the week ended April 13th.

US new orders for manufactured goods rose by 0.3% in October after falling by a revised 0.8% in September, according to a report released by the Commerce Department on Thursday.

Key indices pared gains in morning trade. At 10:21 IST, the barometer index, the S&P BSE Sensex, was up 34.93 points or 0.09% at 40,814.52. The Nifty 50 index was up 6.80 points or 0.06% at 12,025.20.

The S&P BSE Mid-Cap index was down 0.04%. The S&P BSE Small-Cap index was trading almost flat.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 873 shares rose and 855 shares fell. A total of 97 shares were unchanged. In Nifty 50 index, 25 stocks advanced while 25 stocks declined.

Buzzing Index:

The Nifty Pharma index rose 1.15% to 8,144.55, reversing losses acquired in the previous session.

Glenmark Pharmaceuticals (up 2.56%), Dr Reddy's Laboratories (up 1.98%), Sun Pharmaceutical Industries (up 1.41%), Strides Shasun (up 1.22%), Cipla (up 0.87%), Aurobindo Pharma (up 0.69%), GlaxoSmithKline Pharmaceuticals (up 0.6%), IPCA Laboratories (up 0.57%), Divi's Laboratories (up 0.53%), Wockhardt (up 0.26%), Cadila Healthcare (up 0.19%) and Piramal Enterprises (up 0.11%) advanced.

Alkem Laboratories (down 0.49%) and Lupin (down 0.19%) declined.

Stocks in Spotlight:

RBL Bank slipped 0.12% to Rs 364.95. The private sector bank said the qualified institutional placement (QIP) of equity shares which opened on Monday, 2 December 2019, ended yesterday, on 5 December 2019. It has approved allocation of 5.77 crore equity shares at an issue price of Rs. 351 per share.

Kesoram Industries rose 3.05% to Rs 62.05, rising for second consecutive session. The stocks has risen 9.53% to its current market price from a recent closing high of Rs 56.65 on 4 December 2019.

Key indices are trading higher in early trade in line with Asian peers. At 9:19 IST, the barometer index, the S&P BSE Sensex, was up 129.69 points or 0.32% at 40,909.28. The Nifty 50 index was up 26.05 points or 0.22% at 12,044.45.

The S&P BSE Mid-Cap index was up 0.30%. The S&P BSE Small-Cap index was up 0.19%. Both these indices underperformed the BSE Senses.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 552 shares rose and 211 shares fell. A total of 32 shares were unchanged.

Among stocks, Yes Bank fell 3.62%. Yes Bank said Moody's Investors Service downgraded its long term foreign currency issuer rating to B2 from Ba3. Moody's has also downgraded the bank's long-term foreign and local currency bank deposit ratings to B2 from Ba3, foreign currency senior unsecured MTN program rating to (P)B2 from (P)Ba3, and Baseline Credit Assessment (BCA) and Adjusted BCA to b3 from b1. The outlook on the bank's ratings, where applicable, is negative. Moody's expects Yes Bank's common equity tier 1 (CET1) ratio of 8.7% at the end of September 2019 to come under significant pressure, unless the bank can raise new capital in the next few quarters.

M&M fell 0.27%. M&M said the company acquired 36.63% of the Equity Share Capital of Meru in the first tranche of investment. Consequently, Meru has become a subsidiary of the Company with effect from 5 December, 2019. Subsequently, Meru Mobility Tech Private Limited, V-Link Automotive Services Private Limited and V-Link Fleet Solutions Private Limited, subsidiary companies of Meru, have in turn, also become subsidiaries of M&M.

Bank of Baroda rose 0.24%. Bank of Baroda said Capital Raising Committee of Bank approved issuance of Basel III Compliant Additional Tier I Bonds for aggregate total issue size not exceeding Rs 1,850 crore, with a base issue size of Rs 500 crore and a Green Shoe Option to retain oversubscription up to Rs.1 ,350 crore.

Allcargo Logistics rose 2.39%. Allcargo Logistics said Directors have approved the Share Purchase Agreement between the Company and some of the existing members of the Promoter and Promoter Group of Gati Limited for acquisition upto 1,03,85,332 Equity Shares at a price of Rs 75/- per Equity Share. The company will also make an open offer for acquisition of 3,17,42,615 Equity Shares representing 26% of the Paid up Voting Equity Share Capital (post preferential issue and vesting of stock option) of Gati at a price of Rs 75/- per Equity Share.

Narayana Hrudayalaya rose 1.74%. Narayana Hrudayalaya said its plan to establish a 130 bedded hospital project in Nairobi, Kenya announced in 2016 could not be proceeded with due to the inability to fund the project by a financial institution partner.

Greaves Cotton rose 1.02%. Greaves Cotton said it has completed acquisition of entire shareholding of Ms Hemalatha Annamalai in Ampere Vehicles Pvt Ltd through secondary purchase, thereby acquiring absolute control in its subsidiary Ampere Vehicles Pvt Ltd. This is part of Greaves' long-term strategy to strengthen and expand its presence in last-mile e-Mobility space that is seeing significant interest from government and commuters alike.

Overseas, Asian stocks are trading higher as traders await news on the US job market and an impending scheduled American tariff hike on Chinese goods.

In US, stocks moved higher on Thursday as investors remained optimistic about prospects for a US-China trade deal despite a looming deadline for the imposition of fresh import tariffs by President Donald Trump.

On economic front, the nation's trade deficit dropped almost 8% in October to a 16-month low, largely because of lower imports from China.

The benchmark indices swayed between gains and losses in mid-afternoon trade. At 14:25 IST, the barometer index, the S&P BSE Sensex, was up 66.40 points or 0.16% at 40,916.69. The Nifty 50 index was up 8.30 points or 0.07% at 12,051.50. Sentiment was affected by RBI's surprise move of keeping the rate unchanged.

The S&P BSE Mid-Cap index was down 0.13%. The S&P BSE Small-Cap index was up 0.12%.

The market breadth favored sellers. On the BSE, 1091 shares rose and 1245 shares fell. A total of 195 shares were unchanged. In Nifty 50 index, 17 stocks advanced while 33 stocks declined.

Stocks in Spotlight:

Force Motors rose 2.24% to Rs 1037.60. The company's production rose 9.17% to 1786 units in November 2019 from 1636 units in October 2019 but it was down by 12.54% as compared to 2042 units in November 2018. The company's domestic sales fell 9.24% to 1936 units in November 2019 from 2133 units in October 2019 but were up by 31.08% as compared to 1477 units in November 2018. The company's exported 176 units in November 2019 as compared to 93 units in October 2019 and 12 units in November 2018.

Larsen & Toubro Infotech (LTI) fell 2.59% to Rs 1627.40. The company informed that LTI has been visited by the US Department of Homeland Security on 4 December 2019 at its Edison office in New Jersey. The company is fully cooperating with the authorities.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, advanced 10.48% higher to 14.72. The Nifty December 2019 futures were trading at 12,084.25, a premium of 24.95 points compared with the spot at 12,059.30.

On the options front, the Nifty option chain for 26 December 2019 expiry showed maximum call open interest (OI) of 18.40 lakh contracts at the 12,500 strike price. Call writing was witnessed at 12,200 strike price, which added 1.05 lakh contracts.

Maximum put OI of 32.26 lakh contracts was seen at 12,000 strike price. Put writing was seen at the 11,800 strike price, which added 2.97 lakh contracts.

The option chain indicates that Nifty will stay between 12,000 and 12,500 till December expiry, 26 December 2019.

Numbers to watch:

The yield on 10-year benchmark federal paper rose to 6.587% at 14:20 IST compared with 6.462% in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 71.45, compared with its close of 71.535 during the previous trading session.

MCX Gold futures for 5 December 2019 settlement fell 0.01% to Rs 38,089.

In the commodities market, Brent crude for February 2020 settlement was down 14 cents at $62.86 a barrel. The contract rose 3.58% or $2.18 to settle at $63 a barrel during the previous trading session.

Key market barometers were trading with small gains in afternoon trade. Shares witnessed steep volatility after RBI's surprise move of keeping the rate unchanged.

At 13:23 IST, the barometer index, the S&P BSE Sensex, was up 60.57 points or 0.12% at 40,898.18. The Nifty 50 index was up 10.80 points or 0.09% at 12,054.

The S&P BSE Mid-Cap index was down 0.10%. The S&P BSE Small-Cap index was up 0.08%.

The market breadth was negative. On the BSE, 1061 shares rose and 1190 shares fell. A total of 183 shares were unchanged. In Nifty 50 index, 19 stocks advanced while 31 stocks declined.

The yield on 10-year benchmark federal paper rose by 1.67% to 6.570 at 13:23 IST compared with 6.462 in the previous trading session.

Buzzing Index:

The Nifty Metal index fell 1.59% to 2,563.

NMDC (down 2.69%), Jindal Steel & Power (down 2.47%), Tata Steel (down 1.56%), Vedanta (down 0.83%), Hindalco Industries (down 0.77%) and Steel Authority of India (down 0.76%) declined.

National Aluminium Company (up 0.92%), Hindustan Zinc (up 0.35%) and Hindustan Copper (up 0.25%) advanced.

Stocks in Spotlight:

Reliance Industries rose 0.62% to Rs 1562.20. RIL said, its subsidiary Reliance Jio Infocomm (Jio) launched the NEW ALL-IN-ONE PLANS. These plans will provide up to 300% more benefits to the Jio consumers, upholding the Jio promise of providing the best-quality service at the lowest price globally.

Bharti Airtel fell 1.63% at Rs 453.35. The company said its board approved raising up to $3 billion through a mix of equity and debt.

State Bank of India slipped 0.85% to Rs 339. SBI board on Wednesday approved the lender's proposal to sell 8.25% stake in UTI AMC.

Wipro rose 0.60% to Rs 243.65. The IT major announced the launch of its NextGen Cyber Defence Centre (CDC) in Melbourne, Australia. Wipro also plans to launch similar CDCs in other cities in Australia and offer cyber resilience and provide digital protection to large government organizations.

JSW Steel fell 2.44% to Rs 253.45. The company announced that the resolution plan for Vardhman Industries has been approved by the NCLT under Insolvency and Bankruptcy Code, 2016. The Company had preferred an appeal before National Company Law Appellate Tribunal (NCLAT) challenging certain portions of NCLT orders. The company further added that the judgment on the same has been pronounced allowing the said Appeal of JSW.

RBI Policy Outcome:

Investors were hoping for a 25 basis points rate cut. However, the Reserve Bank of India (RBI)'s Monetary Policy Committee (MPC) at its meeting today (5 December 2019) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.15%. Consequently, the reverse repo rate under the LAF remains unchanged at 4.90%, and the marginal standing facility (MSF) rate and the bank rate at 5.40%.

The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/-2%, while supporting growth.

All members of the MPC - Dr. Chetan Ghate, Dr. Pami Dua, Dr. Ravindra H. Dholakia, Dr. Michael Debabrata Patra, Shri Bibhu Prasad Kanungo and Shri Shaktikanta Das - voted in favour of the decision.

The MPC recognised that there is monetary policy space for future action. However, given the evolving growth-inflation dynamics, the MPC felt it appropriate to take a pause at this juncture.

Accordingly, the MPC decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target.

Real GDP growth for 2019-20 is revised downwards from 6.1% in the October policy to 5% to 4.9-5.5% in H2 and 5.9-6.3% for H1:2020-21.

The CPI inflation projection is revised upwards to 5.1-4.7% for H2:2019-20 and 4-3.8% for H1:2020-21, with risks broadly balanced.

While improved monetary transmission and a quick resolution of global trade tensions are possible upsides to growth projections, a delay in revival of domestic demand, a further slowdown in global economic activity and geo-political tensions are downside risks, the MPC statement stated.

Foreign Markets:

Overseas, most shares in Europe and Asia were trading higher on Thursday on signs the United States and China were on track for a preliminary trade deal.

The US stock market finished higher on Wednesday, 04 December 2019, snapping three days of loosing streak, as investors chased for bargain hunting on renewed optimism about a potential trade deal after reports indicated the U.S. and China are moving closer to agreeing on the amount of tariffs that would be rolled back in a phase one trade deal. However, market gains capped after disappointing economic data, including a report from payroll processor ADP showing much weaker than expected private sector job growth in the month of November.

Beyond China, President Donald Trump has been pushing ahead on trade disputes all around the world recently. On Tuesday, he proposed tariffs on $2.4 billion in French products in retaliation for a tax on global tech giants including Google, Amazon and Facebook. That follows a threat Monday to raise tariffs on steel and aluminum from Argentina and Brazil.

In economics news, US non-manufacturing index dipped to 53.9 in November after climbing to 54.7 in October, a report released by the Institute for Supply Management on Wednesday showed. A reading above 50 indicates service sector growth. Meanwhile, the new orders index rose to 57.1 in November from 55.6 in October and the employment index climbed to 55.5 from 53.7.

US private sector employment increased by 67,000 jobs in November after climbing by a revised 121,000 jobs in October, according to a report released by payroll processor ADP on Wednesday. The weaker than expected job growth came as a continued increase in employment in the service-providing sector was partly offset by a loss of jobs in the good-producing sector.

A bout of volatility was witnessed as key barometers pared losses after hitting fresh intraday low in early afternoon trade. Traders panicked after the Reserve bank of India (RBI) kept the repo rates unchanged after policy meeting today. The Nifty descended lower towards its crucial 12,000 mark. Banking stocks were most volatile post RBI announcement.

At 12:26 IST, the barometer index, the S&P BSE Sensex, was down 28.6 points or 0.07% at 40,821.69. The Nifty 50 index was down 18.6 points or 0.15% at 12,024.60.

The S&P BSE Mid-Cap index was down 0.22%. The S&P BSE Small-Cap index was up 0.01%.

The market breadth turned negative from positive. On the BSE, 1023 shares rose and 1131 shares fell. A total of 167 shares were unchanged. In Nifty 50 index, 15 stocks advanced while 35 stocks declined.

The yield on 10-year benchmark federal paper rose to 6.562% at 12:43 IST compared with 6.462% in the previous trading session.

RBI Policy Outcome:

Investors were hoping for a 25 basis points rate cut. However, RBI's Monetary Policy Committee (MPC) at its meeting today (5 December 2019) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.15%. Consequently, the reverse repo rate under the LAF remains unchanged at 4.90%, and the marginal standing facility (MSF) rate and the bank rate at 5.40%.

The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/-2%, while supporting growth.

All members of the MPC - Dr. Chetan Ghate, Dr. Pami Dua, Dr. Ravindra H. Dholakia, Dr. Michael Debabrata Patra, Shri Bibhu Prasad Kanungo and Shri Shaktikanta Das - voted in favour of the decision.

The MPC recognised that there is monetary policy space for future action. However, given the evolving growth-inflation dynamics, the MPC felt it appropriate to take a pause at this juncture.

Accordingly, the MPC decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target.

Real GDP growth for 2019-20 is revised downwards from 6.1% in the October policy to 5% to 4.9-5.5% in H2 and 5.9-6.3% for H1:2020-21.

The CPI inflation projection is revised upwards to 5.1-4.7% for H2:2019-20 and 4-3.8% for H1:2020-21, with risks broadly balanced.

While improved monetary transmission and a quick resolution of global trade tensions are possible upsides to growth projections, a delay in revival of domestic demand, a further slowdown in global economic activity and geo-political tensions are downside risks, the MPC statement stated.

Buzzing Index:

Banks stocks declined following RBI's policy decision. The Nifty Bank index was down 0.51% at 31,814.90.

Among private sector banks, Yes Bank (down 1.9%), IDFC First Bank (down 1.64%), RBL Bank (down 1.42%), Federal Bank (down 1.31%), IndusInd Bank (down 1.06%), Axis Bank (down 0.55%), HDFC Bank (down 0.3%) and AU Small Finance Bank (down 0.27%) were top losers in private bank space.

Among PSU banks, Canara Bank (down 2.05%), Union Bank of India (down 1.84%), Punjab National Bank (down 1.57%), SBI (down 1.26%), Bank of India (down 1.18%), Oriental Bank of Commerce (down 1.04%) and Bank of Baroda (down 0.53%) were top laggards in PSU Bank segment.

Stocks in Spotlight:

Interglobe Aviation declined 2.74% to Rs 1,366.70 after the low-cost airliner lowered its capacity growth guidance for fiscal year 2020. IndiGo said it expects its capacity to grow by 22-23% for fiscal year 2020 as against earlier stated guidance of 25% announced during September quarter earnings. It expects capacity growth of 15-20% in Q4 March quarter. The company lowered its capacity growth guidance for the second time in last 45 days. During the second-quarter earnings, IndiGo had lowered its capacity growth guidance to 25% from 30% for 2019-20.

Bharti Airtel was down 1.76% at Rs 452.75 after the company said its board approved raising up to $3 billion through a mix of equity and debt. The company will raise $2 billion through one or more instruments such as a qualified institutional placement, compulsory convertible debentures or other convertible securities, American depositary receipts (ADR) and global depositary receipts (GDR), according to a regulatory filing. Bharti Airtel also plans to raise up to $1 billion by issuing foreign currency convertible bonds (FCCBs), and similar security in a foreign currency, or through redeemable non-convertible debentures, it said.

The market turned range bound ahead of the Reserve Bank of India (RBI)'s monetary policy outcome at 11:45 IST today. Investors are hoping for a 25 basis points rate cut. All eyes will be on RBI's growth estimate for FY2020. The Nifty held above 12,050 level.

At 11:31 IST, the barometer index, the S&P BSE Sensex, was up 105.62 points or 0.26% at 40,955.57. The Nifty 50 index was up 24 points or 0.2% at 12,067.20.

The S&P BSE Mid-Cap index was up 0.06%. The S&P BSE Small-Cap index was up 0.18%.

The market breadth was positive. On the BSE, 1094 shares rose and 933 shares fell. A total of 136 shares were unchanged. In Nifty 50 index, 20 stocks advanced while 30 stocks declined.

Buzzing Index:

The Nifty Media index was up 1.67% at 1,827.70, extending yesterday's 0.8% rise.

Zee Entertainment (up 4.32%), Hathway Cable (up 4.17%), Network18 (up 2.67%), TV18 Broadcast (up 2.01%), Jagran Prakashan (up 1.82%), Zee Media (up 1.36%), Balaji Telefilms (up 1.3%) and Inox Leisure (up 0.9%) were top gainers in media segment.

Stocks in Spotlight:

Cadila Healthcare was trading 0.76% lower at Rs 261.35. The drug major announced the regulatory filing of Saroglitazar Magnesium for treatment of Non-alcoholic Steatohepatitis (NASH) with the Drug Controller General of India (DCGI). NASH is a progressive disease of the liver and a significant unmet medical need. There are currently no treatments available for the treatment of NASH.

JSW Steel was trading 1.69% lower at Rs 255.40. The company announced that the resolution plan for Vardhman Industries has been approved by the NCLT under Insolvency and Bankruptcy Code, 2016. The Company had preferred an appeal before National Company Law Appellate Tribunal (NCLAT) challenging certain portions of NCLT orders. The company further added that the judgment on the same has been pronounced allowing the said Appeal of JSW.

Foreign Markets:

Asian markets were trading higher on Thursday on signs the United States and China were on track for a preliminary trade deal.

In US, stocks closed higher following a report that a phase-one trade US-China trade deal was still in the works.

On economic front, a reading on the service sector of the US economy was mixed: the Institute for Supply Management's nonmanufacturing index was at 53.9%, lower than in October, but new orders were at 57.1%, up from 55.6% and signalling stronger demand ahead.

Key indices trade in a narrow range with small gains in morning trade. Caution prevailed ahead of the Reserve bank of India's monetary policy outcome. Investors are hoping for a 25 basis points rate cut. All eyes will be on RBI's growth estimate for FY2020. The Nifty held above 12,050 level.

At 10:34 IST, the barometer index, the S&P BSE Sensex, was up 73.28 points or 0.18% at 40,923.57. The Nifty 50 index was up 16.95 points or 0.14% at 12,060.15.

The S&P BSE Mid-Cap index was down 0.02%. The S&P BSE Small-Cap index was up 0.21%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1023 shares rose and 771 shares fell. A total of 111 shares were unchanged.

The initial public offer (IPO) of Ujjivan Small Finance Bank received bids for 2,053.80 crore shares as against 12.39 crore shares on offer, as per the National Stock Exchange of India (NSE) website data. The issue was subscribed 165.68 times. The retail individual investors (RIIs) category was subscribed 49.09 times. The qualified institutional buyers (QIBs) category was subscribed 110.72 times while the non-institutional investors category got subscribed the most by 473 times. The issue opened for bidding on Monday, 2 December 2019 and closed on Wednesday, on 4 December 2019. The price band was fixed at Rs 36 to Rs 37 per share.

Buzzing Index:

Banking stocks were trading marginally higher ahead of RBI's monetary policy outcome. The Nifty Bank index was trading 0.25% higher at 32,099.80.

Private sector banks rose. ICICI Bank (up 0.97%), Axis Bank (up 0.5%), City Union Bank (up 0.2%) and Kotak Mahindra Bank (up 0.2%) edged higher.

Yes Bank (down 1.9%) was banned from trading in F&O Segment by NSE after crossing 95% of market wide position limit.

PSU Banks stocks gained. Syndicate Bank (up 1.41%), Bank of Baroda (up 1.3%), Oriental Bank of Commerce (up 0.78%), Bank of India (down 0.76%), Punjab National Bank (up 0.39%), Union Bank of India (up 0.25%) and Canara Bank (up 0.1%) and edged higher.

State Bank of India was up 0.22% at Rs 342.65. SBI will sell 8.25% stake in UTI AMC through offer for sale of up to 1,04,59,949 equity shares in upcoming IPO.

Stocks in Spotlight:

CreditAccess Grameen gained 1.19% to Rs 834.8 after its board approved the acquisition of an additional 13,350 equity shares of Madura Micro Finance constituting 0.19% of the fully paid up equity share capital of the company. The company announced on 27 November 2019 that it has acquired 76.2% stake in Madura Micro Finance.

Wipro was trading 0.14% lower at Rs 241.85. Wipro announced the launch of its NextGen Cyber Defence Centre (CDC) in Melbourne, Australia. With the launch of this centre, Wipro aims to make substantial investments to upskill its employees, hire more local resources and generate more than 100 jobs in Melbourne for cyber security specialists. Wipro also plans to launch similar CDCs in other cities in Australia and offer cyber resilience and provide digital protection to large government organizations.

Key indices are trading higher in early trade on selective buying. At 9:20 IST, the barometer index, the S&P BSE Sensex, was up 79.75 points or 0.20% at 40,930.04. The Nifty 50 index was up 20.15 points or 0.17% at 12,063.35.

The S&P BSE Mid-Cap index was up 0.26%. The S&P BSE Small-Cap index was up 0.12%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 516 shares rose and 247 shares fell. A total of 42 shares were unchanged.

Among stocks, Reliance Industries rose 1.68%. Reliance Industries said, its subsidiary Reliance Jio Infocomm (Jio) launched the “NEW ALL-IN-ONE PLANS”. These plans will provide up to 300% more benefits to the Jio consumers, upholding the Jio promise of providing the best-quality service at the lowest price globally.

Vedanta fell 0.21%. Vedanta said that Committee of Directors considered and approved offering for subscription, on a private placement basis, up to 30,000 nos. Secured, Rated, Non-Cumulative, Redeemable, Non-Convertible Debentures (NCDs) of face value Rs 10,00,000/- each aggregating up to Rs 3,000 crore (including the option to retain oversubscription of upto Rs 1,500 crore) in two series.

HDFC Asset Management Company fell 3.25%. HDFC Asset Management Company said, its promoter, Standard Life Investments has informed regarding its intention to exercise the Oversubscription Option in the Offer to the extent of 1,835,509 Equity shares. Accordingly, the aggregate number of Sale Shares will be up to 6,585,509 Equity Shares (representing 3.10% of the total issued and paid-up Equity Share capital of the Company).

Bharti Airtel fell 1.51%. Bharti Airtel said the board approved raising up to $3 billion via debt and equity. The Board also authorised the Special Committee of Directors for taking necessary steps for implementing the proposals

State Bank of India rose 0.31%. State Bank of India said its Executive Committee of the Central Board of Directors (ECCB) of the Bank has accorded final approval, for divestment of SBI stake in UTI AMC upto 8.25% through IPO by way of offer for sale of upto 1,04,59,949 equity shares, subject to the approval of the Securlties and Exchange Board of India, and/or such other concerned authorities and departments.

Housing and Urban Development Corporation fell 6.81%. Housing and Urban Development Corporation (HUDCO) said two borrowing agencies of the Company have defaulted in repayment of their dues with a defaulted amount of Rs 87.46 crore against the principal outstanding of Rs 869.41 crore as on date and have been classified as NPAs with an impact of 1.14% on Gross NPA.

Overseas, Asian stocks were trading higher on Thursday on signs the United States and China were on track for a preliminary trade deal.

In US, stocks closed higher following a report that a phase-one trade US-China trade deal was still in the works.

On economic front, a reading on the service sector of the US economy was mixed: the Institute for Supply Management's nonmanufacturing index was at 53.9%, lower than in October, but new orders were at 57.1%, up from 55.6% and signalling stronger demand ahead.

The market pared losses in mid-afternoon trade. The Nifty was trading above the 11,950 level. At 14:28 IST, the barometer index, the S&P BSE Sensex, was down 91.24 points or 0.22% at 40,584.21. The Nifty 50 index was down 25.50 points or 0.21% at 11,968.70.

The sentiment was weak amid negative global cues after U.S. President Donald Trump said a trade deal with China might have to wait until after the 2020 presidential election. Fresh U.S. tariffs on Argentina and Brazil as well as threatened duties on French goods also put pressure on equities. Investors awaited the Reserve Bank of India's policy statement on Thursday and details of the Union cabinet meeting today.

The S&P BSE Mid-Cap index was up 0.08%. The S&P BSE Small-Cap index fell 0.05%.

The market breadth was negative. On the BSE, 1036 shares rose and 1292 shares fell. A total of 196 shares were unchanged. In Nifty 50 index, 23 stocks advanced while 27 stocks declined.

Stocks in Spotlight:

Bharti Airtel advanced 0.05% to Rs 459.20. The company's board will meet today to consider and evaluate any and all proposals for raising of funds either by issuance of equity shares, and or bonds.

Dr. Reddy's Laboratories rose 0.66% to Rs 2878. The drug maker announced the launch of Bortezomib approved by the U.S. Food and Drug Administration (USFDA). The drug is indicated for the treatment of adult patients with multiple myeloma and for the treatment of adult patients with mantle cell lymphoma who have received at least one prior therapy.

Piramal Enterprises slipped 2.68% to Rs 1678. The company's pharma solutions business announced that the company will be partnering with BerGenBio ASA on the development of Bemcentinib for the treatment of elderly patients with relapsed acute myeloid leukemia (AML). Bemcentinib was recently designated as a Fast Track drug by the U.S. Food and Drug Administration (FDA), asthere are currently no marketed drugs specifically approved for relapsed AML patients, representing a significant unmet medical need.

Numbers to watch:

The yield on 10-year benchmark federal paper fell to 6.455% at 14:19 IST compared with 6.462% in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.69, compared with its close of 71.6675 during the previous trading session.

MCX Gold futures for 5 December 2019 settlement rose 0.44% to Rs 38,420.

In the commodities market, Brent crude for February 2020 settlement was up 42 cents at $61.24 a barrel. The contract fell 0.16% or 10 cents to settle at $60.82 a barrel during the previous trading session.

The Organization of the Petroleum Exporting Countries (OPEC)'s bi-annual meeting will kicks off Thursday in Vienna. OPEC and its allies, known as OPEC+, are discussing a plan to increase an existing supply cut of 1.2 million barrels per day (bpd) by a further 400,000 bpd and extend the pact until June, media reports said.

Equity market barometers extended decline and hit fresh intraday low in afternoon trade. The Nifty slipped below the 11,950 level. At 13:28 IST, the barometer index, the S&P BSE Sensex, was down 170.84 points or 0.42% at 40,504.61. The Nifty 50 index was down 47.60 points or 0.40% at 11,946.60.

Selling was triggered by negative global cues after U.S. President Donald Trump said a trade deal with China might have to wait until after the 2020 presidential election. Fresh U.S. tariffs on Argentina and Brazil as well as threatened duties on French goods also spoiled trading sentiment. Investors awaited the Reserve Bank of India's policy statement on Thursday and details of the Union cabinet meeting today.

The S&P BSE Mid-Cap index was down 0.13%. The S&P BSE Small-Cap index fell 0.24%.

The market breadth was negative. On the BSE, 1021 shares rose and 1104 shares fell. A total of 154 shares were unchanged. In Nifty 50 index, 24 stocks advanced while 26 stocks declined.

Economy:

The Union Cabinet has reportedly approved a total of six bills, including Citizenship (Amendment) Bill, extension of reservation for SC/STs and Personal Data Protection Bill. The Bills will be introduced in the Parliament.

The Cabinet also approved the launch of Bharat Bond Exchange Traded Fund (ETF). Bharat Bond ETF would be the first corporate bond ETF in the country. It will provide additional money for CPSUs, CPSEs & other government organizations.

Further, the government is looking into the issue of unpaid GST compensation to certain states, said Finance Minister Nirmala Sitharaman. The finance ministers of Delhi, Punjab, Puducherry and Madhya Pradesh and representatives Kerala, Rajasthan, Chattisgarh and West Bengal attended the meeting over delay in payment of compensation.

Buzzing Index:

The Nifty Auto index slipped 0.08% to 7,957.90. Escorts (down 1.64%), Ashok Leyland (down 1.42%), TVS Motor Company (down 1.25%), Maruti Suzuki India (down 0.81%), Bajaj Auto (down 0.65%) and Mahindra & Mahindra (down 0.16%) declined.

Hero MotoCorp (up 0.33%) and Eicher Motors (up 0.07%) advanced.

Tata Motors surged 4.43% to Rs 165.15. Jaguar Land Rover total November U.S. sales reached 12,472 units, up 6% from November 2018. For the calendar year, Jaguar Land Rover achieved 1.11 lakh units, up by 3% from 1.08 lakh units in 2018.

The auto stocks have been under pressure this week after weak auto sales in November. The Nifty Auto index has fallen 2.98% in five sessions to 7,957.90 from its recent closing high of 8,202.85 on 27 November 2019.

Stocks in Spotlight:

Bajaj Finance slipped 0.43% to Rs 3950.35. The Securities Appellate Tribunal (SAT) suspended the transfer of shares from the depository account of Karvy Stock Broking (KSBL) and asked the Securities and Exchange Board of India (Sebi) to hear the company's plea which had challenged the market regulator's share-shift order.

Larsen & Toubro (L&T) was trading 1.80% lower at Rs 1289.90. L&T announced that the construction arm of the company has significant secured orders from prestigious clients across various Indian states for its varied businesses. As per the company's classification, the valuation of the significant orders received lies between Rs 1,000 to Rs 2,500 crore.

Foreign Markets :

European markets opened slightly higher while Asian markets continued to trade in the red on Wednesday after an overnight fall in US stocks. US stocks fell on Tuesday after President Donald Trump reportedly said it may take until after the 2020 US elections to complete a trade deal with China.

Speaking to reporters in London on Tuesday, Trump said he had no deadline for striking a deal with Beijing. It had previously been expected the world's two largest economies could sign a so-called phase one trade deal before the end of 2019.

Trade tensions escalated on other fronts, including Brazil, Argentina and France after Trump said he was bringing back tariffs on Brazilian and Argentinian steel, while the administration also proposed tariffs of up to 100% on $2.4 billion in French imports.

In the U.K., several world leaders have gathered in London to mark the 70th anniversary of NATO.