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Sensex ends below 36,000! Top 5 factors that weighed on equity market

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Mumbai: It is the second session of the new year and the benchmark indices are in a downtrend. The S&P BSE Sensex has slipped below its crucial support placed at 36,000 in intraday trade and ended below it.
The Nifty50 is not far behind. It has broken below Tuesday’s intraday low of 10,807 to hit a fresh low of 10,781 before regaining some strength on Wednesday. The index managed to close with losses of over a percent and below 10,800.
The S&P BSE Sensex saw a steep drop of over 500 points in intraday trade while Nifty50 saw a cut of 1 percent to trade below 10,800.
Technically, a close below 10,800 could put further pressure on the index, suggest experts.
“On the downside, index has support at 10,800-10,777 zones. Till it holds above 10,777 zones, overall bias could remain positive to range bound while a decisive move above 10,985 could start the fresh up move towards 11,176 levels,” Chandan Taparia, Associate Vice President, Analyst-Derivatives, Motilal Oswal Financial Services told Moneycontrol.
Here is a list of top five factors which could be weighing on D-Street:
Weak Asian Cues:
Overnight, US markets were closed while most of the Asian markets resumed trading on Wednesday after the New Year holiday. The cues were not supportive from the beginning of the session as most of the Asian markets were trading with a negative bias.
The Shanghai blue-chip index quickly shed 1.2 percent and South Korea fell 1.5 percent. Japan’s Nikkei was closed for a holiday.
China Slowdown weigh on metal stocks:
The S&P BSE Metal index slipped more than 2 percent in the second half of the trading session weighed down by losses in Vedanta, JSW Steel, Tata Steel, Hindalco on concerns of a slowdown in China.
China’s factory activity contracted for the first time in 19 months in December as domestic and export orders continued to weaken, a private survey showed, pointing to a rocky start for the world’s second-largest economy in 2019, Reuters reported.
The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) for December, released on Wednesday, fell to 49.7 from 50.2 in November, marking the first contraction since May 2017.
“Aluminium demand growth in 2019 is pegged at 2.5-3.5% YoY. However, weak Chinese demand in H2CY18 and further uncertainties expected in CY19 remain a cause of concern,” Edelweiss Securities said in a report.
“Driven by an expected deficit of ~2mt (~3% of overall demand), we see limited downside for LME Al prices. If costs dip post Alunorte resuming full production and/or thermal coal prices receding, LME Al prices could come under pressure,” it said.
CLSA has downgraded the metal sector which is also acting as an overhang for the sector. Deteriorating Chinese demand outlook is likely to weigh on commodity prices, it said.
The global investment bank slashed FY20-21 EPS estimates by 9-38 percent factoring in lower commodity prices and a stronger rupee.
Auto stocks under pressure:
The S&P BSE Auto index slipped over 2 percent weighed down by losses in Eicher Motors, M&M, TVS Motor, Tata Motors, Hero MotoCorp, as well as Ashok Leyland.
For Eicher Motors, December 2018 dispatches decline steeply by 13 percent on a YoY basis to 58,278 units. The numbers are below our estimates of 65,000 units and also sharply below market expectations.
Ashok Leyland December 2018 sales at 15,493 units have declined 20 percent YoY and are broadly in-line with our estimates of 15,950 units.
Hero MotoCorp December 2018 sales stood at 453,985 units, down 4 percent YoY and marginally below our estimates of 465,000 units. Increased competitive pressures and high channel inventory due to a weak festive season sales lead to the decline.
Indian manufacturing growth slows:
Indian manufacturing activity expanded at a slower pace in December as growth in new orders and output waned, despite factories cutting their prices, a private survey showed on Wednesday.
The Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, declined to 53.2 in December, below November’s 54.0 reading and a Reuter’s poll median of 53.6.
December saw the weakest increase in input costs for nearly three years, giving factories room to cut their prices for the first time since July 2017, Reuters reported.
GST collections drop for December:
Revenue collection from Goods and Services Tax (GST) fell to Rs 94,726 crore in December from Rs 97,637 crore a month ago, as per data released by the Finance Ministry on January 1.
Out of the total collection, Central GST (CGST) was Rs 16,442 crore, with states garnering Rs 22,459 crore State GST (SGST). At least Rs 7,888 crore was received as cess, with Rs 47,936 crore collected as Integrated GST (IGST), which is levied on the inter-state supply of goods and services and is divided between states and the Centre.
The government has set a target of over Rs 12 lakh crore for the financial year 2018-19, which can be achieved if the average monthly mop up is around Rs 1 lakh crore, as compared with Rs 89,885 crore in 2017-18.


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WPI inflation at 8-month low of 3.80 pc in Dec on softening fuel, food prices

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New Delhi: Inflation based on wholesale prices fell to a 8-month low of 3.80 per cent in December, 2018, on softening prices of fuel and some food items.

The Wholesale Price Index (WPI)-based inflation stood at 4.64 per cent in November, 2018, and 3.58 per cent in December 2017. According to the government data released on Monday, deflation in food articles stood at 0.07 per cent in December, against 3.31 per cent in November.

Vegetables, too, saw deflation at 17.55 per cent in December, compared to 26.98 per cent in the previous month. Inflation in the ‘fuel and power’ basket in December slumped to 8.38 per cent, nearly half of 16.28 per cent in November.

 

This was on account of lowering of prices of petrol and diesel through December. Individually, in petrol and diesel inflation was 1.57 per cent and 8.61 per cent, respectively, and for liquified petroleum gas (LPG) it was 6.87 per cent during December.

Among food articles, potato prices became cheaper substantially with inflation at 48.68 per cent in December, as against 86.45 per cent in November.

Inflation in pulses stood at 2.11 per cent, while in ‘egg, meat and fish’ it was 4.55 per cent. Onion witnessed deflation of 63.83 per cent in December, compared to 47.60 per cent in November.

The 3.80 per cent inflation is the lowest in 8 months, and a lower inflation than this was last seen in April at 3.62 per cent. Data for retail or consumer price index-based inflation would be released later in the day.

The Reserve Bank of India (RBI) mainly takes into account retail inflation data while formulating monetary policy. In its fifth monetary policy review for the fiscal, last month, the Reserve Bank kept interest rates unchanged, but held out a promise to cut them if the upside risks to inflation do not materialise.

The central bank lowered retail inflation projection to 2.7-3.2 per cent for the second half of the current fiscal, citing normal monsoon and moderate food prices.

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Air tickets, identity cards to become redundant; flyers can use facial recognition to enter airport

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New Delhi: The hassle to show air tickets and identity cards at Airport will be over as air travellers can soon enter airport with facial recognition biometric facility.

GMR Hyderabad International Airport Ltd (GHIAL) that operates the Rajiv Gandhi International Airport (RGIA), has successfully conducted the trial of facial recognition technology. During the first phase of the trial, employees of GHIAL were included. The second phase of the trial is expected to be launched by the end of this month, in which GHIAL will include common air fliers. And if the second phase of the trial is successful, GHIAL will implement facial recognition technology in Hyderabad airport from March onwards.

Three phases of facial recognition technology

 

First phase: GHIAL has installed facial recognition cameras in the Hyderabad. In the first phase, the imaging of passengers will be done through these cameras which will recognise the faces of the flyers.

Second phase: There would be a centralised registration system for passengers. Each passenger’s face will be attached with his/her photo identity like passport, Aadhaar, voting id, driving licence etc. The details of passengers along with his facial mapping will be scanned and stored by GHIAL through the centralised registration system at the Airport.

Third phase: The ID proof of the passengers along with their facial mapping will be stored at the e-boarding gate of the Airport.The data centres at Airlines will also have similar information. Whenever such passengers book tickets, the data system will alert the Hyderabad Airport authorities.

The moment you book a flight ticket originating from Hyderabad airport, your details will be shared by the data centre and the information will be given to all the concerned authorities.

When you reach the Hyderabad terminal gate, face recognition technology will identify you and all your details will be shared on the screen. The security personnel at the gate will access all your information via the system.

Similarly, your details can be accessed by the security personnel at the check-in counter, security check-in. Once the formalities are done, passengers will get an online boarding pass on their mobile phone.

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Maruti all-new WagonR 2019 available for booking at Rs 11,000

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New Delhi: Country’s largest car manufacturer Maruti Suzuki India on Monday said that its all-new WagonR is available for booking starting.

Customers can book the 3rd generation WagonR at authorized dealer network across the country by paying Rs 11,000. They can also book the car online.

The New WagonR is powered by the advanced K-series engine offering high fuel efficiency and an unmatched driving experience, Maruti said. The car now comes with a new 1.2 L engine option that delivers powerful and impressive performance coupled with great fuel economy. Customers will also have the choice of 1.0 L engine for the all-new WagonR.

 

Maruti Suzuki’s acclaimed two pedal technology will also be offered in the new WagonR. The Auto Gear Shift (AGS) offers. Maruti said that for the first it is going to offer the most innovative SmartPlay Studio infotainment experience in the Big New WagonR.

The car will be available in Pearl Poolside Blue, Pearl Nutmeg Brown, Magma Grey, Pearl Autumn Orange, Silky Silver and Superior White Range of variants. The Petrol: 1.0 L engine will be available in Lxi, Vxi / Vxi AGS variants while the Petrol: 1.2 L will be available in Vxi, Vxi AGS, Zxi / Zxi AGS variants.

“The new WagonR gets bigger with enhanced comfort. The car’s sturdy and masculine look with true tall boy design makes for a strong road presence. The Big New WagonR not only embodies strong looks but is also stronger inside out,” Maruti said in a release.

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