Supreme court AGR plea, blow to telecom shares


Indian market finishes off with decent gains on Thursday, the Nifty weekly expiry day. On the NSE, the broader Nifty50 index hit a fresh high of 12,389.05-mark. The index, eventually, settled at 12,355.50-mark, up 12.20 points or 0.099 per cent. All the key sectoral indices closed the day with gains, except Nifty Metal index that slipped 1.3% on. Nifty Media index was the top gainer, up 1.42 per cent, on the NSE, followed by Nifty Realty index up by 0.67 per cent.

Global market was fuelled by the trade deal signed between the US and China to take a positive step to settle their long trade dispute. US stocks rallied on Thursday. The Dow Jones Industrial Average DJIA, +0.92% gained 267.42 points, or 0.92%, to 29,297.64.The S&P 500 index SPX, +0.84% advanced 27.52 points, or 0.84%, to 3,316.81 and the Nasdaq Composite index COMP, +1.06% added 98.44 points, or 1.06%, to 9,357.13. Under the terms of the trade agreement signed by President Trump on Wednesday, China is expected to purchase $95 billion more in U.S. commodities than in 2017, and roughly $100 billion more in manufactured goods and services.

Asian shares also rose on Friday morning. The Chinese GDP released came in line with the analyst’s expectation even amid a trade dispute with the U.S. The Chnese economy grew by 6.1% in 2019. Japanese Nikkei index also gained more than 100 points however the HongKong’s Hang Seng was trading on a flatter note.

Domestic market starts on a positive note as the broader Nifty50 index reclaimed the psychological mark of 12,350 and was hovering around 12,380 levels, up 26 points, or 0.2 per cent. The Nifty sectoral indices were trading mixed. Nifty Private Bank index dipped 0.5 per cent while Nifty Auto climbed 0.8 per cent and Nifty Pharma was up 0.5 per cent. In the broader market, the S&P BSE MidCap index climbed 71 points, or 0.46 per cent, while the S&P BSE SmallCap index gained 66 points, or 0.45 per cent.

The Supreme Court rejected pleas by Vodafone Idea, Bharti Airtel and Tata Teleservices to review the October 24verdict that widened the definition of adjusted gross revenue (AGR), leaving the three telcos collectively facing more than Rs 1.02 lakh crore in additional licence fees, spectrum usage charges (SUC), penalties and interest. Shares of Vodafone Idea crashed by 25% to Rs 4.55 and Bharti Infratel slumped 8.2% to Rs 222.95.

Disclaimer: represents Bitupan Majumdar which is an independent research analyst with SEBI RA registration code INH300006962. The report is distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 includes Financial Instruments and Currency Derivatives. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in Securities referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors. This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose




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