MARKET WRAP: Sensex, Nifty end little changed; Tata Steel, SBI advance 3%

Topics MARKET WRAP | Markets

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Despite a range-bound trade, domestic markets hit fresh lifetime highs for the third consecutive day on Friday. Investment sentiment remained in check in the absence of any key global and domestic cues.

The benchmark S&P BSE Sensex closed at 41,681.54-level, up 7.62 points or 0.018 per cent. Tata Steel, YES Bank, SBI, and Hero MotoCorp were the top gainers at the 30-share index, while Vedanta, Tata Motors, ITC, and M&M were the top drags for the day. On the NSE, the broader Nifty50 settled little changed at 12,271.8-mark, up 12.1 points or 0.09 per cent. Markets ended at record closing highs for the fourth straight session.

The benchmark Sensex and Nifty hit fresh highs of 41,809.96 and 12,293.90, respectively.

In a major corporate development, Mahindra & Mahindra (M&M) on Friday announced a rejig of its top management with Anand Mahindra, 64, transiting to the role of non-executive chairman from executive chairman, effective 1 April, 2020. In a statement, the firm said Pawan Kumar Goenka has been re-appointed the managing director with additional responsibilities of chief executive officer (CEO) for a year, effective 1 April, 2020. Shares of Mahindra and Mahindra reversed their 0.7 per cent intra-day gain, and declined 1.2 per cent in the intra-day deals today. The counter eventually settled 0.86 per cent lower at Rs 530.45. READ MORE

On the sectoral front, public sector banks gained the most on Friday fter the Reserve Bank of India (RBI) decided to buy and sell bonds worth Rs 10,000 crore via open market operations. At close, the Nifty PSU bank index was the top performer on the NSE, up over 2 per cent. On the downside, Nifty Auto index slipped 0.45 per cent.

For the week, the benchmark S&P BSE Sensex gained 1.6 per cent, while the Nifty50 added 1.5 per cent registering their biggest weekly gains in nearly two months. Besides, Nifty Bank index advanced 1 per cent this week. 

In the broader markets, the S&P BSE mid-cap index ended 0.15 per cent higher at 14,835.97 level, while the S&P BSE small-cap index ended unchanged at 13,391.03 level, down 0.03 per cent.

GLOBAL CUES

Asian shares snoozed near 18-month highs on Friday as trade thinned in the run-up to Christmas and investors seemed content to digest the chunky gains already made so far this month.

MSCI’s broadest index of Asia-Pacific shares outside Japan were steady after rising 1.2 per cent so far this week. Japan's Nikkei reversed early gains after reaching a 14-month high earlier in the week. 

European stocks made tiny move today, although Italian shares outperformed on some positive company updates. The STOXX 600 rose just 0.1 per cent, still on course to end a second week with gains and trading about 1 percent below all-time highs. 

(With inputs from Reuters)

3:40 PM IST

3:40 PM IST

3:39 PM IST >> The benchmark S&P BSE Sensex closed at 41,681.54-level, up 7.62 points or 0.018 per cent.    >> The benchmark Sensex and Nifty hit fresh highs of 41,809.96 and 12,293.90, respectively.  

3:30 PM IST -- To co-develop antimalarial co-formulation named ‘Atoguanil’

3:21 PM IST A wave of debt in emerging and developing nations has grown faster and larger than in any period of the last five decades and could end with another crisis, the World Bank warned Thursday.   And if the wave breaks, it could be more damaging since it would engulf private companies in addition to governments, at a time when economic growth is sluggish, according to a new report that covers four debt surges from 1970-2018. "The size, speed and breadth of the latest debt wave should concern us all," World Bank President David Malpass said in a statement. READ MORE

3:00 PM IST >> Positive impact of govt reforms to materialise in medium-term, rather than near-term

2:48 PM IST >> FY21 GDP growth seen at 5.6%

2:44 PM IST Shares of YES Bank and Shriram Transport Finance Company rallied up to 7 per cent on the BSE on Friday despite being downgraded by rating agencies. YES Bank climbed 10 per cent to Rs 53.50 from its early morning low of Rs 48.50 on the BSE. With today’s gain, the stock of private sector lender has bounced back 19 per cent from its Thursday’s low of Rs 45. A combined 285 million equity shares, representing 1 per cent of total equity of YES Bank, changed hands on the NSE and BSE till 02:08 pm. READ MORE

2:43 PM IST >> Outlook stable >> GDP growth outlook still solid relative to peers >> Rating affirmation incorporates moderate fiscal slippage in FY20 >> Risk of more India fiscal expansion if growth remains weak

2:39 PM IST COMPANY LATEST(rs) CHG(rs) CHG(%) VOLUME VODAFONE IDEA 6.48 -0.10 -1.52 18712729 REL. COMM. 0.90 0.04 4.65 2250016 BHARTI AIRTEL 456.85 8.35 1.86 448005 TEJAS NETWORKS 78.15 0.65 0.84 2277

2:38 PM IST >> Hopeful of auction in March-April  >> Spectrum bids will be open by Jan 31 >> Have issued request for proposal (RFP) for appointment of auctioneer >> Rs 5.22 lakh crore is the total Reserve Price of the spectrum up for auction >> For sub-GHz band, upfront money is only 25% >> For band over 1 GHz, only 50% upfront money has to be paid; the remaining can be paid in 18 yrs Alert: DCC is Digital Communications Committee

LIVE UPDATES

Sectoral trends at NSE at close


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


Closing Bell

>> The benchmark S&P BSE Sensex closed at 41,681.54-level, up 7.62 points or 0.018 per cent. 
 
>> The benchmark Sensex and Nifty hit fresh highs of 41,809.96 and 12,293.90, respectively.
 

NEWS ALERT | Ipca Labs enters into an agreement with Medicines for Malaria Venture (MMV): BSE Filing

-- To co-develop antimalarial co-formulation named ‘Atoguanil’

Crisis looms as debt wave sweeps developing nations, warns World Bank

A wave of debt in emerging and developing nations has grown faster and larger than in any period of the last five decades and could end with another crisis, the World Bank warned Thursday.
 
And if the wave breaks, it could be more damaging since it would engulf private companies in addition to governments, at a time when economic growth is sluggish, according to a new report that covers four debt surges from 1970-2018. "The size, speed and breadth of the latest debt wave should concern us all," World Bank President David Malpass said in a statement. READ MORE

NEWS ALERT | Indian banks need $7 billion by FY21 to meet capital norms: Fitch on India

>> Positive impact of govt reforms to materialise in medium-term, rather than near-term

NEWS ALERT | FY20 GDP seen at 4.6%: Fitch on India

>> FY21 GDP growth seen at 5.6%

YES Bank, Shriram Transport shrug off rating downgrades, advance up to 7%

Shares of YES Bank and Shriram Transport Finance Company rallied up to 7 per cent on the BSE on Friday despite being downgraded by rating agencies.
YES Bank climbed 10 per cent to Rs 53.50 from its early morning low of Rs 48.50 on the BSE. With today’s gain, the stock of private sector lender has bounced back 19 per cent from its Thursday’s low of Rs 45. A combined 285 million equity shares, representing 1 per cent of total equity of YES Bank, changed hands on the NSE and BSE till 02:08 pm. READ MORE

NEWS ALERT | Fitch affirms India's long-term currency issuer rating at 'BBB-': CNBC TV18

>> Outlook stable

>> GDP growth outlook still solid relative to peers

>> Rating affirmation incorporates moderate fiscal slippage in FY20

>> Risk of more India fiscal expansion if growth remains weak

Sector watch | Telecom stocks at this hour

COMPANY LATEST(rs) CHG(rs) CHG(%) VOLUME
VODAFONE IDEA 6.48 -0.10 -1.52 18712729
REL. COMM. 0.90 0.04 4.65 2250016
BHARTI AIRTEL 456.85 8.35 1.86 448005
TEJAS NETWORKS 78.15 0.65 0.84 2277

NEWS ALERT | DCC has approved Trai's recommendation on 5G spectrum pricing: Telecom Secy, reports CNBC TV18

>> Hopeful of auction in March-April 

>> Spectrum bids will be open by Jan 31

>> Have issued request for proposal (RFP) for appointment of auctioneer

>> Rs 5.22 lakh crore is the total Reserve Price of the spectrum up for auction

>> For sub-GHz band, upfront money is only 25%

>> For band over 1 GHz, only 50% upfront money has to be paid; the remaining can be paid in 18 yrs

Alert: DCC is Digital Communications Committee

Global Markets check

European stocks were made tiny moves on Friday as trading volumes thinned into Christmas, although Italian shares outperformed on some positive company updates.

The STOXX 600 rose just 0.1 per cent, still on course to end a second week with gains and trading about 1 percent below all-time highs.

In early trading, the pan-region Euro Stoxx 50 futures were up 0.3 per cent and German DAX futures 0.1 per cent, while FTSE futures were a shade weaker. E-Mini futures for the S&P 500 ESc1 were at all-time highs, having risen 1.2 per cent in the week.
 
Asian shares snoozed near 18-month highs on Friday as trade thinned in the run-up to Christmas and investors seemed content to digest the chunky gains already made so far this month.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS were steady after rising 1.2 per cent so far this week and almost 5 per cent this month. Japan's Nikkei reversed early gains after reaching a 14-month high earlier in the week. It was ahead by 2.5 per cent for the month so far.

 
 

Heatmap: S&P BSE Sensex


NEWS ALERT | Andrew Bailey named as Bank of England governor: AFP quoting finance ministry

>> Bailey to be governor for 8 yrs

Puzzled why stock market is buoyant amidst slowdown: Arvind Subramanian

Expressing his confusion over a buoyant stock market amidst economic slowdown, renowned economist and former chief economic advisor (CEA) for government, Arvind Subramanian called for research in the area.
 
Subramanian was speaking at the inauguration of the NSE Centre for Behavioural Science in Finance, Economics and Marketing, being set up jointly by Indian Institute of Management, Ahmedabad (IIM-A), NSE and NSE IPFT. READ MORE
Former CEA Arvind Subramanian

Rupee check


NEWS ALERT | Govt can raise $ 1 trillion by lowering stake in PSUs: Anil Agarwal, Vedanta Chairman, reports CNBC TV18

>> Will evaluate participation in BPCL stake sale; would like to look at all assets. 
Anil Agarwal

Of 15 IPO stocks, 11 gave listing gains in 2019; IRCTC listed 101% higher

Of the 15 companies that got listed on the bourses in 2019, 11 delivered between 4 per cent to 101 per cent listing gains to investors. On average, IPO stocks listed 20 per cent higher than their issue price on a listing day. IRCTC listed 101 per cent higher,while Ujjivan Small Finance Bank and CSB Bank listed 56 and 41 per cent higher.
 
Though the number of issues and the total funds raised through IPOs shrank in 2019, most of the companies which got listed in 2019 are trading above their issue price. READ MORE

NEWS ALERT | Lupin gets US FDA nod for Betamethasone Dipropionate Ointment USP: BSE filing


Market check | Indices turn negative


NEWS ALERT | Hold it against PSBs that they haven't passed the benefits of rate cuts to customers: FM

-- Made sure stressed MSMEs are not declared NPAs: FM
 

Market check | Sensex pares gains


NEWS ALERT | PSBs must move more liquidity out in the system: FM

-- Together with banks and RBI, we looked at where liquidity was stuck: FM

From Titan to TCS, here's how you can make money in Tata Group stocks

Moving averages and technical patterns suggest that the upside momentum in Tata Group stocks is likely to stay high despite the recent developments. READ MORE  

BUZZING STOCK | Coal India jumps over 2.50%


Business failures can't be deemed as crimes, will reform laws, says PM Modi

Hardselling his administration's pro-business approach, Prime Minister Narendra Modi on Friday said the government is working to decriminalise provision of Companies Act to make it easier to do business in the country. Speaking at an Assocham event, he said the recent cut in corporate tax has brought rates to all-time low for businesses. READ MORE

ABB India trades weak after stock turns ex-date for spin off

ABB India shares dipped 4 per cent to Rs 1,280 on the BSE on Friday after the stock turned ex-date for spin off today.
 
The board of directors of ABB India has fixed "December 23, 2019" as the record date for determining the names of the equity shareholders of the Company to whom equity shares of ABB Power Products and Systems India Limited ("APPSlL"), would be issued and allotted. READ MORE

NEWS ALERT | Anish Shah appointed CFO of Mahindra & Mahindra till April 2021: BSE Filing

-- Shah will become MD & CEO of co for 3 years w.e.f April 2, 2021.
 
-- VS Parthasarathy will step down as CFO on April 1, 2020

-- Board approves transition of Anand Mahindra's role to Non-executive Chairman. 
 
-- Pawan Goenka re-designated MD & CEO upto November 11, 2020
.

Dr Reddy's reaping benefits of domestic market focus, outperforms peers

The focus of Dr Reddy’s Laboratories (DRL) on the domestic market seems to be paying off. This has helped the company outperform the domestic pharma market in seven of the last eight quarters.
 
In November, DRL registered growth of 28 per cent year-on-year (YoY), which was the highest among peers and double that of the industry growth (14.5 per cent). The trailing twelve-month average, at 15.4 per cent, was also higher than the pharma growth of 9.8 per cent. READ MORE

MARKET CHECK | Top 5 gainers on the BSE at this hour


IPO Watch | Prince Pipes issue subscribed 90% so far on Day 3


PM Modi at ASSOCHAM AGM

For me, FDI means First Develop India. The country has attracted a large chunk of Foreign Direct Investment in the last five years

PM Modi at ASSOCHAM AGM

No inappropriate action will be taken against genuine business decisions

PM Modi at ASSOCHAM AGM

Genuine business failure cannot be termed as fraud

PM Modi at ASSOCHAM AGM

Banking sector has been strengthened; can help in making India a $5 trillion economy

PM Modi at ASSOCHAM AGM

Systemeic weaknesses have been addressed. Corporates should look to invest more

PM Modi at ASSOCHAM AGM

Have put an end to government's interference in banking. Economy should be formalised and modernised

PM Modi at ASSOCHAM AGM

> Current corporate tax rates lowest in 100 yrs

>> Moving towards faceless tax administration to bring transparency and accountability

PM Modi at ASSOCHAM AGM

We inherited a weak economy. NDA halted economic slump in India

PM Modi at ASSOCHAM AGM

13 banks are back in profit; 6 banks out of PCA framework

NEWS ALERT | $5 trillion dollar economy is achievable: PM Modi

>> Aim is to formalise and modernise Indian Economy

>> India is one of the leading nations in making improvement in Ease of Doing Business

NEWS ALERT | Nifty Bank index breaches 32,400 for the first time


Nifty Metal index trades higher


SpiceJet trades lower for fifth straight day, hits eight-month low

Shares of SpiceJet were trading lower for the fifth straight session, down 2.5 per cent at Rs 96.85 on the BSE on Friday in an otherwise firm market. The stock of India’s second biggest airline in terms of market share was quoting at its lowest level since April 11, 2019. In the past six days, SpiceJet's share price has slipped 7 per cent after Boeing announced last week that it would suspend producing 737 Max planes as the certification process of the safety of these planes by the Federal Aviation Administration would move into 2020. READ MORE

NEWS ALERT | India needs better infra to solve stressed assets' issue: Gita Gopinath, chief economist, IMF to CNBC TV18

>> Globally, bad banks have been created for private banks; In India, issues are with PSBs
 
>> One could look at bringing in Private Asset Reconstruction Cos to solve bad assets 
 
>> Important to simplify GST rates
 
>> Very important for India to signal fiscal consolidation
IMF Chief economist Gita Gopinath. Illustration: Ajay Mohanty

Union Bank of India gains 3%


BROKERAGE RADAR | Reliance Securities on Mahanagar Gas

MAHGL is trading as a consumer play (FY20 P/E of 14x) despite its matured business profile and EBITDA margin reduction, after rise in crude prices and crude linked gas cost. Further, we expect MAHGL’s RoCE/RoE to fall from 24%/24% in FY19 to 22%/22% in FY22E, as the Company is unlikely to sustain consistent growth in EBITDA and PAT over the next 3 years volume growth over FY19-FY22E.We downgrade our recommendation on the stock to REDUCE from HOLD with an unrevised DCF-based Target Price of Rs 956. 

NEWS ALERT | NCLT allows extension of Jet Airways' resolution process by 90 days: CNBC TV18


Dishman Carbogen tanks 11%, hits 52-week low after I-T dept's search ops

Shares of Dishman Carbogen Amcis slumped 11 per cent to hit a 52-week low of Rs 104 on the BSE on Friday after the Income Tax Department conducted day-long 'search and survey operation' at the properties of a pharma major. The stock has thus fallen below its previous low of Rs 110, touched on October 25, 2019. READ MORE

Momentum picks by ICICI Securities


NEWS ALERT | Glenmark Pharma receives marketing approval for Ryaltris from Australian regulator: BSE filing

-- Receives marketing approval for Ryaltris from the Therapeutic Goods Administration (TGA), Australia.

-- Australia will be the first market globally where Ryaltris will be launched.

MARKET UPDATE: Sensex pares gains


Syndicate Bank, SBI add up to 6% as RBI to buy and sell bonds via OMOs

In a statement on Thursday, the RBI said it will simultaneously buy and sell government bonds worth Rs 10,000 crore each on December 23, through Open Market Operations (OMOs). "On a review of the current liquidity and market situation and an assessment of the evolving financial conditions, the RBI has decided to buy government bonds maturing in 2029 and sell four securities aggregating Rs 10,000 crore which will mature in 2020," it said. READ MORE

JM Financial surges over 5% on nod to fund-raising plan, hike in FII limit

JM Financial shares jumped as much as 5.54 per cent to Rs 97 apiece on the BSE on Friday after the company informed that the board has given approval to raise up to Rs 850 crore. The company also received approval to increase investments by the foreign portfolio investors (FPIs) from 24 per cent to 40 per cent. At 10:00 am, the stock was trading around 3 per cent higher at Rs 94.50 on the BSE. It had hit a 52-week high of Rs 100 on November 22. READ MORE

Graphite India up 2%


10-year bonds rally from 3-month low as RBI brings in 'Operation Twist'

Benchmark 10-year bonds rallied from near a three-month low after the central bank said it will buy longer-tenor bonds while selling shorter debt in a move reminiscent of the US Federal Reserve’s Operation Twist. The Reserve Bank of India will buy 100 billion rupees ($1.4 billion) of the 6.45 per cent 2029 debt and sell an equal amount of notes maturing next year in an auction on Monday, it said in a statement. READ MORE

Adani Transmission up 3%


MARKET CHECK


Divi's Labs dips 1%


BUZZING STOCK:: Varroc Engineering climbs 4%


YES Bank up 3%


JM Financial gains 3% as Co raises FII limit to 48 per cent


Nifty PSU Bank index is trading 1% higher


SBI up over 1% in early trade


SECTOR WATCH | Top gainers and losers on the NSE


FIRST TRADE: Top gainers and losers on the S&P BSE Sensex


OPENING BELL

At 09:16 AM, the S&P BSE Sensex was trading flat at 41,698, up 24 points, or 0.06 per cent, while NSE's Nifty50 index was up 10 points, or 0.08 per cent, at 12,269.

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


Market at Pre-open


Market at Pre-open


Rupee opening

Rupee opens lower at 71.15/$ vs Thursday's close of 71.03 against the US dollar

Cummins India: A value trap for investors or value buy? Analysts cautious

The Cummins India stock has corrected 34 per cent year-to-date. Its valuation at 22x its FY21 estimated earnings is also the lowest in six years. For investors, it could imply two things.
 
One, it could be that with the worst behind in terms of growth and the stock probably bottoming out, Cummins India presents a good proposition in the capital goods space. However, the question is whether one has the visibility to call out the bottom yet, with domestic growth estimated at just 3-5 per cent for FY20. READ MORE


Two-thirds of FII bets slip in red; overseas investors at receiving end

Foreign institutional investors (FIIs) have had a mixed year, getting negative returns in two-thirds of the stocks in which they raised stake, over the first nine months of calendar year 2019.
 
According to an analysis of data from Capitaline, of the 423 listed firms in which FIIs raised stake, 278 had delivered negative year-to-date (YTD) returns. Market experts say that FIIs have been caught off-guard on their exposures to companies with high-leverage and those facing cyclical headwinds. READ MORE

Stocks to watch: Bajaj Finance, IT, oil-linked firms, SBI, Tata Chemicals

Here's a look at the top stocks that may remain in focus today -
 
Bajaj Finance: Bajaj Finance Ltd. on Thursday said it has invoked 24 lakh pledged shares of Karvy Data Management Services Ltd. to recover outstanding dues from a group firm.
 
Zee Entertainment: Media major Zee Entertainment has sets its sight on growing its regional portfolio of channels following viewership gains over the past three years in the segment. READ MORE

Outlook & trading strategies for Copper, Gold by Tradebulls Securities

Gold prices are trading steady after the US and China reached limited trade deal on Friday. It is trading in the range of $1,480-$1,465. The US and China have reached a partial trade deal, UK Prime Minister Boris Johnson won an election mandate on Brexit, and the US reached a trading deal with its neighbors, Canada and Mexico. It looks like Gold is forming base. Gold has been trading in tight range since November 4 and is unable to move above 50-day moving average in COMEX. READ MORE

Derivatives strategy by Nandish Shah of HDFC Sec: Buy Siemens Dec Futures

Buy SIEMENS DECEMBER Future at Rs 1,531
 
Stop Loss: Rs 1,505
 
Rationale:
 
We have seen Long build up in the Siemens Futures where we have seen rise in Open Interest with price rising by 1.5 per cent. READ HERE

Nifty outlook and top trading ideas by Jay Anand Thakkar of Anand Rathi

CYIENT: BUY | TGT: Rs 445 | SL: Rs 410
 
The stock has provided a breakout from the double bottom pattern that has been formed on the daily chart. The momentum indicator MACD has provided a buy crossover with a positive divergence which is a positive sign going forward. READ MORE

Bulk deals on BSE as on Thursday

Bulk deals on NSE as on Thursday

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


Rupee Check

Source: Bloomberg


Oil Check

>> Oil prices held steady near three-month highs on Friday, heading for a third consecutive weekly rise, on the back of easing Sino-U.S. trade tensions that have weighed on demand as well as the global economic growth outlook, reported Reuters

>> At 8:27 am, Brent Crude Futures were at $65/65 per barrel mark, up 0.09 per cent.

SGX Nifty

At 8:26 AM, the Singaporean Exchange for Nifty Futures was at 12,280 level, up 7 points.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters



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