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Sensex, Nifty advance in early trade : 25 Nov 2019

Capitalstars Investment Advisor
Key indices are trading higher in early trade on buying demand in index pivotals. At 9:21 IST, the barometer index, the S&P BSE Sensex, was up 133.74 points or 0.33% at 40,493.15. The Nifty 50 index was up 36.30 points or 0.3% at 11,950.70.

The S&P BSE Mid-Cap index was up 0.3%. The S&P BSE Small-Cap index was up 0.41%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 727 shares rose and 363 shares fell. A total of 62 shares were unchanged.

Among stocks, Power Grid Corporation of India (PGCIL) slipped 0.15%. PGCIL said it was declared as the successful bidder in two intra-state transmission system projects of Uttar Pradesh under tariff-based competitive bidding (TBCB). PGCIL will construct 765/400/220 kilovolt (kV) GIS substations in Meerut and Rampur; and 400/220/132 kV GIS substations in Simbhaoli and Sambhal with associated transmission lines.

Shree Cement rose 0.37% to Rs 20,383.10. Shree Cement announced on Saturday, 23 November 2019, that the qualified institutional placement (QIP) committee approved the allotment of 12.43 lakh equity shares of Rs 10 each to qualified institutional buyers at an issue price of Rs 19,300 each, aggregating to Rs 2399.99 crore. The QIP issue price of Rs 19,300 is at a discount of 2.56% or Rs 506.46 per equity share to the floor price of Rs 19,806.46.

Unichem Laboratories gained 3.8% after the company announced that it has received ANDA approval for its Atenolol Tablets USP, 25 mg, 50 mg, and 100 mg. from the United States Food and Drug Administration (USFDA) to market a generic version of TENORMIN (Atenolol) Tablets, 25 mg, 50 mg, and 100 mg, of Alvogen Malta Operations. Atenolol Tablets is indicated for the treatment of hypertension, to lower blood pressure. The product will be commercialized from Unichem's Ghaziabad Plant

Oil India fell 0.39%. Oil India said it incorporated a joint venture company, Purba Bharati Gas, in Assam on 19 November 2019. The joint venture company was formed pursuant to a joint venture agreement dated 11 July 2019, between Assam Gas Company, Oil India, and GAIL Gas for development of city gas distribution (CGD) network in Kamrup & Kamrup Metropolitan (Guwahati) and Cachar, Hailakandi & Karimganj districts in Assam.

Vodafone Idea lost 1.42%. Vodafone Idea announced that credit rating agency, CRISIL, has downgraded its rating on company's non-convertible debentures of Rs 3,500 crore. CRISIL downgraded ratings from BBB+ to BBB-. The downgrade is on account of substantial impact on the financial risk profile on account of the potential payout against the adjusted gross revenue (AGR) related disputed liability and continued weak operating performance.

CARE Ratings also downgraded its rating on the company's long term bank facilities and non-convertible debentures. The rating was revised to CARE BBB- from CARE A- with a negative implications outlook. The downgrade is on account of significant erosion in the overall risk profile of the company while taking into cognizance of the financial impact of unfavorable ruling of Supreme Court; significant losses in Q2FY20 due to provision related to AGR dues, recognition of deferred assets and provision for additional depreciation/ impairment of assets and consequently resulting in the significant deterioration in the tangible net worth and overall debt protection metrics.

Overseas, Asian shares were trading higher Monday as investors watch market reaction to Hong Kong's district council elections amid months of civil unrest in the city.

U.S. stocks closed higher Friday as both Washington and Beijing made positive comments on the potential for a trade deal between the world's two biggest economies.

On the U.S.-China trade front, a ???phase two??? trade deal between the two economic powerhouses is reportedly unlikely to come soon. That comes as Washington and Beijing have yet to strike a ???phase one??? agreement ahead of 15 December 2019, when additional tariffs on Chinese exports to the U.S. are set to kick in.

In economic data, IHS Markit said its U.S. flash manufacturing sector purchasing managers index rose to 52.2 in November from 51.3 in October. Meanwhile the U.S. flash services sector purchasing managers index in November rose to 51.6 from 50.6. Any reading above 50 indicates improving conditions. The University of Michigan reported that its consumer-sentiment index for November came in at 96.8, versus 95.7 in the prior month.

In Europe, the IHS Markit eurozone composite PMI fell to 50.3 this month, from 50.6 in October. Britain faces a general election on December 12.

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