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Market ends lower for 2nd day amid mixed global cues; Nifty ends below 19,700
(16:57, 20 Nov 2023)

The domestic stock market witnessed a decline for the second consecutive session today as it grappled with mixed global cues. The day commenced on a subdued note, with trading activity mostly restricted within a narrow range. The Nifty fell below 19,700 due to selling pressure in the autos and FMCG shares. However, gains in the IT and healthcare shares helped offset some of the intraday losses. Market sentiment has been adversely affected by elevated long-term interest rates and a weakening global economy. Despite these challenges, the reduction in selling activities by Foreign Institutional Investors (FIIs) has provided support to the domestic market.

The barometer index, the S&P BSE Sensex declined 139.58 points or 0.21% to 65,655.15. The Nifty 50 index lost 37.80 points or 0.19% to 19,694.

Adani Enterprises (down 2.55%), Bajaj Finance (down 2.11%) and Mahindra & Mahindra (down 1.91%) were major drags.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.06% while the S&P BSE Small-Cap index gained 0.39%.

The market breadth was negative. On the BSE, 1,876 shares rose and 1,939 shares fell. A total of 165 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, advanced 2.70% to 12.15.

Numbers to track:

The yield on India's 10-year benchmark federal paper rose 0.57% to 7.253 as compared with previous close 7.212.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.3525, compared with its close of 83.2650 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement declined 0.18% to Rs 60,602.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.38% to 103.52.

The United States 10-year bond yield advanced 0.51% to 4.466.

In the commodities market, Brent crude for January 2024 settlement gained 78 cents or 0.97% to $81.39 a barrel.

Global markets:

Shares in Europe and Asia were mixed on Monday as investors watched for changes to China?s benchmark lending rates.

The People?s Bank of China?s one-year loan prime rate is currently at 3.45%. The five-year benchmark loan rate stands at 4.2%. This is the third straight month that the People? Bank of China has held the one-year LPR after lowering it from 3.55% to 3.45% in August. The five year LPR meanwhile, has been held at 4.2% for five consecutive months, having been last lowered in June from 4.3%.

US stocks ended higher on Friday and clinched a third straight winning week amid a red-hot November rally. Those gains were sparked by tame U.S. inflation data that gave hope to investors that the Federal Reserve?s tough stance on rate policy may be in the rear view mirror.

Stocks in Spotlight:

Mankind Pharma jumped 4.8% after the company was added to the FTSE All-World, Large-Cap, Total-Cap, and All-Cap indices.

Tata Investment Corporation rallied 15.06% to Rs 4493.25, continuing its recent sharp rise ahead of the upcoming Tata Technologies initial public offering.

Shares of Tata Investment Corporation have risen 39.47% in four consecutive sessions. It has surged 93% in 1 year. The stock hit a record high of Rs 4,597.75 today.

Tata Technologies is a subsidiary of Tata Motors. Tata Investment Corporation is a promoter group entity of the auto major. The IPO of Tata Technologies is scheduled to open for public subscription on 22nd November and conclude on 24th November 2023. The IPO band is set at Rs. 475 to Rs 500. Promoter Tata Motors will offload 4.62 crore equity shares worth Rs 2,313.75 crore in the OFS.

Larsen & Toubro (L&T) shed 0.7%. The company announced that its Hydrocarbon Business arm (L&T Energy Hydrocarbon) has secured mega offshore order from a prestigious client in the Middle East. As per Larsen & Toubro's (L&T) classification, the value of the mega project lies between Rs 10,000 crore to Rs 15,000 crore.

Meanwhile, the EPC major said that it has received a total penalty of Rs 238.95 crore from General Tax Authority of Qatar for variation in the income as declared by the company. The company said that the penalty levied is arbitrary and unjustified. Hence it has filed an appeal.

Cipla declined 0.18%. The pharma major said that it has received a 'warning letter? from United States Food and Drug Administration (US FDA) for the routine current good manufacturing practices (cGMP) inspection conducted at its Pithampur manufacturing facility between 6 and 17 February 2023.

Talbros Automotive Components hit an upper circuit of 20% after the firm received multi year orders worth Rs 580 crore from both domestic and overseas customers across its business divisions, product segments and joint ventures (JVs).

Zen Technologies hit an upper circuit of 5% after the company said that it has received an export order valued at approximately Rs 42 crore ($5.12 million).

Vedanta rose 0.10%. CRISIL Ratings has downgraded its ratings on the long-term bank facilities and debt instruments of the company to ?CRISIL AA-? from ?CRISIL AA? and placed these ratings on ?Rating Watch with Developing Implications? from ?Rating Watch with Negative Implications? while reaffirming the ratings on the short-term debt instruments of the Company at ?CRISIL A1+? and placing these ratings also on ?Rating Watch with Developing Implications?.

Bank of Baroda rose 0.53%. The bank said that its capital raising committee has approved to raise Rs 15,000 crore through infra bonds and Tier II/sub debt bond.

Oberoi Realty added 0.55%. The firm has sealed a deal with Ireo Residences Company and other stakeholders to procure around 14.816 acres (59,956.20 square meters) of land in Sector 58, Gurugram, Haryana. The acquisition, valued at approximately Rs 597 crore, encompasses both financial considerations and area allocation for existing homeowners and other stakeholders.

Blue Dart Express fell 1.43%. The company said that it has partnered with India Post for introducing automated digital parcel lockers at selected post offices, offering customers an additional delivery method.

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