MARKET WRAP: Indices end flat, Nifty holds 12,250; auto, metal stocks shine

Topics Markets | MARKET WRAP

Equity markets ended the penultimate trading session of the calendar year 2019 on a flat note amid mixed global cues and lack of market participants in the holiday season. 

The S&P BSE Sensex on Monday lost 17 points or 0.04 per cent to settle at 41,558 amid selling in financial and IT bellwethers. ICICI Bank (down around 1 per cent) emerged as the top loser on the index while Nestle (up around 1.5 per cent) was the biggest gainer. ICICI Bank, TCS, Axis Bank, and Infosys contributed the most to the index's slide while HDFC Bank, RIL, Bharti Airtel, and Maruti gave the much-needed support. 

Out of 30 constituents, 18 advanced and 12 declined. During the day, the index hit a high and low of 41,715 and 41,453, respectively. 

Market breadth remained in favour of advances as out of 2,767 companies traded on the BSE, 1,449 advanced and 1,124 declined while 194 securities remained unchanged. 

NSE's Nifty closed at 12,261, up 15 points or 0.12 per cent.

Volatility index India VIX surged around 3.5 per cent to 10.89 levels. 

In the broader market, Nifty Midcap 100 index gained 0.37 per cent to 17,070 levels while Nifty SmallCap 100 index rallied 0.6 per cent to end at 5,792-mark. 

SECTOR WATCH

Auto stocks advanced the most in trade with Nifty Auto index rising 1.5 per cent to 8,329.50. All the 15 constituents in the index ended in the green. Metal counters were next on the list as Nifty Metal index gained 1.20 per cent. On the downside, PSU bank stocks slumped the most. The Nifty PSU Bank index fell over 1 per cent to 2,538 levels. 

BUZZING STOCKS

Shares of Tata Motors climbed over 4 per cent to Rs 183.60 on the BSE, gaining more than 50 per cent in October-December quarter. The stock of Tata Group automobiles company is set to post its sharpest quarterly gain in the past one decade. READ MORE  

Shares of cinema theatre operators were in focus with PVR (Rs 1,925) and Inox Leisure (Rs 399) hitting their respective all-time highs on expectation of strong earnings growth in October-December quarter (Q3FY20). READ MORE

GLOBAL MARKETS

A broad gauge of Asian share markets rose to an 18-month high on Monday as Chinese equities gained, while oil touched three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East.

Japan's Nikkei stock index finished its last trading day of the year down 0.76 per cent. The index gained 18.2 per cent in 2019 after dropping 12.8 per cent last year. In early European trade, the pan-region Euro Stoxx 50 futures were down 0.16 per cent at 3,764, 

German DAX futures were down 0.22 per cent at 13,291.5 and FTSE futures were down 0.11 per cent at 7,578.5.

(With inputs from Reuters)


LIVE UPDATES

MARKET COMMENT | Vinod Nair, Head of Research, Geojit Financial Services

Market was range-bound, premium valuation and lack of fresh triggers influenced investors to take cautious approach on heavyweights. But reasonable valuation of mid & small caps attracted inflows leading to outperformance in the broad market. We expect this polarized valuation not to sustain, there could be shift of money from the overvalued large caps to midcaps in 2020.

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
VODAFONE IDEA 6.16 0.33 5.66 30391776
SUZLON ENERGY 1.86 -0.12 -6.06 7361672
YES BANK 47.35 -0.65 -1.35 6879229
SPICEJET 110.25 6.55 6.32 2585598
RELIANCE POWER 3.48 0.05 1.46 2381120
» More on Most Active Volume

BSE500 stocks that hit 52-week high today

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
AMBER ENTERP. 1136.00 1138.00 42.60 3.90
APL APOLLO 1844.00 1844.00 62.40 3.50
BAJAJ FIN. 4245.50 4280.00 -7.20 -0.17
BALRAMPUR CHINI 183.30 187.00 -1.25 -0.68
COROMANDEL INTER 525.70 530.80 2.00 0.38
» More on 52 Week High

Nifty sectoral indices at close


Top gainers and losers on S&P BSE Sensex at close


Closing Bell

> The benchmark S&P BSE Sensex dipped 17.14 points or 0.04 per cent to 41,558
 
>> On the NSE, the broader Nifty50 settled with 14.80 points, or 0.12 per cent, gain at 12,260.60

Closing Bell


Jindal Steel & Power hits over 6 month high; stock up 23% in two weeks

Shares of Jindal Steel & Power (JSPL) gained 4 per cent on the BSE on Monday to hit an over six-month high of Rs 168 on expectation of improved earnings going forward. The stock of the OP Jindal Group company was trading at its highest level since June 14, 2019. In the past two weeks, JSPL's stock rallied 23 per cent after the company commissioned its fourth coke oven battery at Angul plant making it self-sufficient in coke requirement. In comparison, the S&P BSE Sensex was up 1.5 per cent during the same period. READ MORE

MARKET UPDATE:: Sensex pares losses, turns flat


Heatmap: S&P BSE Sensex


BSE500 stocks that hit 52-week high today

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
AMBER ENTERP. 1132.20 1137.70 38.80 3.55
APL APOLLO 1821.00 1836.00 39.40 2.21
BAJAJ FIN. 4255.70 4280.00 3.00 0.07
BALRAMPUR CHINI 182.95 187.00 -1.60 -0.87
COROMANDEL INTER 523.55 530.80 -0.15 -0.03
» More on 52 Week High

BUZZING STOCK:: SpiceJet zooms 6%


Chemical stocks rally; IG Petro, Bodal Chemicals hit 20% upper circuit

COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME
I G PETROCHEMS 162.45 135.40 27.05 19.98 41028
BODAL CHEMICALS 69.05 57.55 11.50 19.98 260770
BALAJI AMINES 404.00 360.20 43.80 12.16 37269
THIRUMALAI CHEM. 73.70 65.85 7.85 11.92 304882
BHAGERIA INDUST. 111.20 101.70 9.50 9.34 24718

(Click here to view full list)  

BROKERAGE RADAR | Anand Rathi Research on Dishman Carbogen

Dishman remains fully committed to scaling up its business and primary growth drivers like commercialization of molecules in late phase 3 (18 molecules) and global dominance in Vitamin D are likely to help Dishman report revenue and PAT CAGR of 11% and 15% respectively over FY19-21. We revise target price to Rs 227 (earlier Rs 362) based on 10x PER (in-line with historical average) on FY21e EPS of Rs 23.

Risks: Currency fluctuations, regulatory hurdles, deferred orders.

MARKET UPDATE:: Infosys down 1% after block deals; top loser among Sensex stocks


Asian Markets check

A broad gauge of Asian share markets rose to an 18-month high on Monday as Chinese equities gained, while oil touched three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East.

But European shares were expected to open lower as investors take a breather from recent rallies. In early European trade, the pan-region Euro Stoxx 50 futures STXEc1 were down 0.16 per cent at 3,764, German DAX futures FDXc1 were down 0.22 per cent at 13,291.5 and FTSE futures FFIc1 were down 0.11 per cent at 7,578.5.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose to its highest since June 19, 2018, before trimming gains. It was last up 0.05 per cent. Australian shares finished 0.25 per cent lower as investors continued to consolidate recent gains.
 
Japan's Nikkei stock index finished its last trading day of the year down 0.76 per cent. The index gained 18.2 per cent in 2019 after dropping 12.8 per cent last year.

Rupee check


BUZZING STOCK:: Balaji Amines surges 13%


Adani Green, Adani Transmission: Trading strategies for Adani Group stocks

Adani Group stocks remained in focus in the year 2019, with most of them outperforming the benchmark index Nifty. Adani Green alone surged over 261 per cent during the year. Among other stocks, Adani Transmission Limited gained 66.38 per cent, while Adani Gas was up 54.46 per cent, Adani Enterprises climbed 29.88 cent, and Adani Power 18.25 per cent. READ MORE

Tata Motors surges 54% in December quarter; sees sharpest gain in 10 years

Shares of Tata Motors were up nearly 3 per cent to Rs 181 on the BSE on Monday, gaining more than 50 per cent in October-December quarter. The stock of Tata Group automobiles company is set to post its sharpest quarterly gain in the past one decade. Thus far in the fourth quarter of current calendar year 2019 (Q4CY19), shares of Tata Motors have rallied 54 per cent, as compared to 7.5 per cent rise in the S&P BSE Sensex. The stock hit a 52-week low of Rs 106 on September 4, 2019. READ MORE

With mandatory pre-trade allocation, Sebi to plug IPO-arbitrage in MFs

The Securities and Exchange Board of India (Sebi) wants to plug the arbitrage play that mutual fund (MF) houses deploy during initial public offering (IPO) to benefit one scheme over another. To meet this end, the market watchdog wants to make pre-trade allocations mandatory for all institutional investors. “By not informing in advance, which scheme would get what allocation, there is a gap in the system that can be easily misused. Post-allocation, some fund managers can take their own call on which scheme should get the allotted shares, depending upon their view of the company,” said a senior executive of a fund house. READ MORE

MARKET CHECK | Wockhardt at day's low


MARKET CHECK | Top losers from BSE500 pack

SUZLON ENERGY 1.87 1.98 -0.11 -5.56 5621067
CORPORATION BANK 25.35 26.35 -1.00 -3.80 73644
I O B 11.60 11.99 -0.39 -3.25 67193
ARVIND FASHIONS. 369.00 381.00 -12.00 -3.15 2923
ICICI SEC 415.05 427.90 -12.85 -3.00 348567

Click here to view full list  

BROKERAGE RADAR | Emkay Global Financial Services on NMDC

We have factored in 2mt/3mt incremental production/sales in FY21/22E, considering the expansion of mining plan. This results in EBITDA increase by 8%/10% for FY21/22E. We maintain Buy on NMDC with a revised TP of Rs145 (Rs133 earlier) and increase our OW position in sector EAP. The key risk is a smooth transition of iron ore ownership after Mar’20, resulting in a sharp price reduction in domestic markets. 

BUZZING STOCK | Monte Carlo advances 9%


Contribution to S&P BSE Sensex's fall today


EXPERT VIEW | Prince Pipes makes a tepid debut at the bourses

"On the expected line, Prince Pipes made a debut in the secondary market with a 10% discount to its issue price. It looks attractive by its valuation but there is a question mark on its corporate governance. There are concerns regarding related party transactions and pledging of promoter's shares. Investors are advised to avoid this stock and look for other quality stocks in the same space," said Santosh Meena, Senior Analyst at TradingBells. 

Essel Propack jumps nearly 7%


BUZZING STOCK | Infibeam Avenues surges around 7%


Investment lessons of 2019: Focus on reducing risk, choose your bank wisely

When it comes to investing, skill is extremely important. However, experience is perhaps the greatest teacher. Experience makes us aware of the various risks that exist. This awareness changes one’s approach so that from merely focusing on higher returns, we also begin to focus on risk mitigation. Let us take a look at some of the key lessons that 2019 taught us. READ MORE   


Social, political agenda more important for Modi than economy: Chris Wood

Social and political agenda seems to be more important for the Narendra Modi-led government than economy as things stand, feels Christopher Wood, global head of equity strategy at Jefferies. Though he remains a supporter of Modi’s structural reforms, the recent developments relating to the citizenship law, Wood wrote in his weekly note (GREED & fear) to investors, have seemingly confirmed the longstanding criticism of Modi and the Bharatiya Janata Party (BJP) – that they are committed to pursuing a Hindu supremacist agenda. READ MORE 

MARKET UPDATE:: Sudden fall in Sensex


Multiplex operators' shares in focus; PVR, Inox Leisure hit record highs

Shares of cinema theatre operators were in focus on Monnday with PVR (Rs 1,925) and Inox Leisure (Rs 399) hitting their respective all-time highs on expectation of strong earnings growth in October-December quarter (Q3FY20). Shares of Inox Leisure rallied 6 per cent to Rs 399 after the company said it has commenced the commercial operations of four additional screens (with seating capacity of 378 seats) in the-existing multiplex cinema theatre in Indore. The stock surpassed its previous high of Rs 390 touched on November 4, 2019. READ MORE

Nifty sectoral indices at this hour


BUZZING STOCK | Ramco Systems up over 4.5%


BROKERAGE RADAR | Reliance Securities on Aarti Industries

Reco: BUY | Target Price: Rs 929   
  • Aarti Industries (ARTO) has been continuously ramping up its share of value added products (74% in 1HFY20 vs. 70% in FY19) which has been ensuring sustainable EBITDA growth. 
  • Going forward, apart from the consistent rise in share of value added products, the company is set to benefit from the increased focus on toluene value chain. We believe, ARTO is in a sweet spot to benefit from the sizeable import substitution opportunity as India is the net importer in toluene derivatives. 
  • We find comfort in the strong long term earnings visibility as the company has signed three multi-year long-term deals which at 100% off-take would contribute an earnings of Rs1,809mn (37% of FY19 PAT). We expect healthy earnings CAGR of 22% over FY19-21E. 
  • The stock trades at 26.3x/19.7x FY20E/21E earnings. We maintain BUY recommendation on the stock with a Target Price of Rs 929.  

Gateway Distriparks surges 29% in 3 days on stake sale in Snowman Logistics

Shares of Gateway Distriparks (GDL) were up 12 per cent to Rs 123 on the BSE on Monday. The stock has rallied 29 per cent in the past three trading days after the company announced plan to sell entire stake sale in Snowman Logistics to Adani Logistics for around Rs 296 crore. The trading volumes on the counter jumped more than eight-fold today. A combined 1.23 million equity shares changed hands on the NSE and BSE till 10:26 am. In comparison, the S&P BSE Sensex was up 0.28 per cent at 41,690 points. READ MORE

Momentum Picks by ICICI Securities


BUZZING STOCK:: Bharti Airtel up 1%


MARKET UPDATE:: Sensex holds gains


Prince Pipes makes a tepid market debut, lists at 10% discount at Rs 160

Shares of Prince Pipes and Fittings Ltd made a tepid market debut today and listed at Rs 160, a 10 per cent discount against its issue price of Rs 178 per share on the BSE. Post-listing, the stock hit an intra-day low of Rs 152.60 only to quickly pare losses and inch as high as Rs 165.90 per shar on the exchange. READ MORE

Adani Ports up 2% on acquisition of 40% stake in Snowman Logistics

Shares of Adani Ports and Special Economic Zone (SEZ) gained nearly 2 per cent in the early trade on the BSE on Monday after Adani Logistics, a subsidiary of the company, announced on Friday it had signed an agreement to acquire a 40.25 per cent stake in Snowman Logistics from Gateway Distriparks for Rs 296 crore. The purchase price of Rs 44 per share is a 3.2 per cent premium to the market price of December 27, and a 12 per cent premium to the 60-day volume weighted average price (VWAP), said a company release. READ MORE

NEW LISTING | Prince Pipes and Fittings lists at Rs 160, a 10 per cent discount against its issue price of Rs 178 per share on the BSE


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
VODAFONE IDEA 6.18 0.35 6.00 5338169
YES BANK 47.20 -0.80 -1.67 1156971
SUZLON ENERGY 1.83 -0.15 -7.58 1102566
DISH TV 13.32 -0.16 -1.19 668242
RELIANCE POWER 3.52 0.09 2.62 411405
» More on Most Active Volume

Auto stocks trade higher


Vodafone Idea surges 9% in early trade


Piramal Enterprises gains over 1%


Reliance Capital gains around 4%


BUZZING STOCK | Snowman Logistics jumps 5%


Adani Ports up 1.50% as it acquires stake in Snowman Logistics


FIRST TRADE | Sectoral gainers & losers on the NSE


FIRST TRADE | Gainers & losers on the S&P BSE Sensex


OPENING BELL

At 09:17 am, The S&P BSE Sensex was trading 69 points or 0.17 per cent higher at 41,644 while NSE's Nifty50 was at 12,270, up 24 points or 0.19 per cent. 

Top gainers and losers on S&P BSE Sensex during Pre-open


Market at pre-open


Rupee opening

Rupee opens flat at Friday's close of 71.35 against the US dollar

Stocks to watch

Prince Pipes: Prince Pipes and Fittings, whose IPO was opened for subscription between December 18 and December 21, is slated to list its shares on the stock exchanges on Monday(December 30).
 
PI Industries: PI Industries Friday announced completion of its acquisition of Isagro (Asia) Agrochemicals (Isagro Asia) from Isagro Spa and its affiliates. READ MORE

Two stocks that Vaishali Parekh of Prabhudas Lilladher is bullish on

BUY COAL INDIA
 
CMP: Rs 203.50
 
TARGET: Rs 220-230
 
STOP LOSS: Rs 188
 
The stock has almost formed a double bottom pattern at near Rs 183 levels and has given a decent bounce back with also the relative strength index (RSI) getting stronger and stronger and it has implied strength for further upside movement in the coming days. The bias is positive with favourable indicators and we suggest to buy and accumulate this stock for an upside target of Rs 220 -230 levels keeping the stop loss near Rs 188. READ MORE

Nifty outlook and top trading ideas by CapitalVia Global Research Limited

As per weekly option data, handful of Put writing was seen on lower strikes ranging from 12,100 to 12,200 which shows the Nifty is witnessing good support in the sub-12,200 zones. Call writing on higher strikes ranging in 12,300 to 12,400 shows the market is likely to face resistance at higher levels. Traders should try to buy any dip at higher levels as the market has maximum put Open Interest (OI) at 12,200 which will act as major support level for the weekly expiry, but 12,300 will act as resistance as maximum OI for the calls stand here. READ MORE

Bulk deals on BSE as on Friday

Bulk deals on NSE as on Friday

Click here for complete list
Security Name Client Name Buy / Sell Quantity Traded Trade Price /
Wght. Avg. 
Price
DC Infotech and Comun Ltd MUKTABEN JETHALAL THAKKER BUY 57,000 45.13
DC Infotech and Comun Ltd NAYSAA SECURITIES PRIVATE LIMITED BUY 30,000 45.37
DC Infotech and Comun Ltd RIKHAV SECURITIES LIMITED BUY 87,000 45.24
Federal-Mogul Goetze (I) PACE STOCK BROKING SERVICES PVT LTD BUY 11,23,540 657.37
Federal-Mogul Goetze (I) PACE STOCK BROKING SERVICES PVT LTD SELL 10,306 657.91
Indiabulls Hsg Fin Ltd TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED BUY 24,61,790 300.60
Indiabulls Hsg Fin Ltd TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED SELL 25,58,217 300.78

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil check

-- Oil prices hovered around three-month highs on Monday following a higher-than-expected crude inventory drawdown and optimism over an expected U.S-China trade deal, while traders kept a close eye on Middle East unrest.

West Texas Intermediate (WTI) crude futures edged up 1 cent to $61.73 a barrel. The US benchmark is up about 36 per cent so far this year. Brent crude futures were at $68.28 a barrel, up 12 cents. The international benchmark has risen around 27 per cent in 2019.

SGX Nifty

At 8:25 AM, the Singaporean Exchange for Nifty Futures was at 12,333.50 level, down 7.5 points.

Asian Markets check

Source: Reuters


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