Sensex zooms 380 pts, ends at record high on US stimulus cheer, Brexit deal

Topics Markets | SGX Nifty | NSE

The Indian markets closed at fresh lifetime high on Monday on broad-based buying amid positive global cues after US President Donald Trump signed into law a $2.3 trillion pandemic aid and spending package. Moreover, the United Kingdom's historic trade deal with the European Union also aided investor sentiment.

Among the headline indices, the S&P BSE Sensex closed 380 points higher at 47,354. The index hit an intra-day high of 47,407. The broader Nifty50 index closed at 13,873. State Bank of India and Titan (both up 3%) were the top Sensex gainers, followed by Larsen & Toubro and IndusInd Bank (both up 2%). Out of the 30 Sensex constituents, 26 ended the day in the green.

All the Nifty sectoral indices, barring Nifty Pharma, ended higher, led by Nifty Realty and Nifty Metal indexes, both up 2.6 per cent.

The broader markets outperformed the benchmarks, with the S&P BSE MidCap and SmallCap indexes gaining 0.8 per cent and 1.5 per cent, respectively.

Shares of Tata Motors ended the session 5.9 per cent higher at Rs 186.30 on the BSE after the United Kingdom (UK) and the European Union negotiators finalized their historic post-Brexit trade agreement.

Pilani Investments and Industries Corporation soared 12.85 per cent to Rs 2,837 on the BSE ahead of 2:5 bonus issue. The stock will turn ex-date for bonus shares on Thursday, December 31.

Global markets

The euro STOXX index rose 0.9 per cent in the first trading session after London and Brussels signed an eleventh hour deal on Thursday evening that preserves zero tariff access to each other’s markets.U.S. S&P futures rose 0.6 per cent in their first trade after the Christmas holiday, edging near a record touched last week.

Earlier Japan’s Nikkei advanced 0.7 per cent and China stocks also rose, helped by strong industrial profit data. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1 per cent.

(with inputs from Reuters)

LIVE UPDATES

MARKET VIEW | Ajit Mishra, Religare Broking

Markets started the week on a buoyant note and posted decent gains led by positive global cues. The optimism over the news that the US President has signed the stimulus package triggered healthy buying in the equity markets. Besides, participants also took note of the beginning of the vaccine drive in various parts of the world. Consequently, the Nifty index settled around the day’s high at 13,883 levels. We’re mirroring the global markets and indications are in favour of prevailing up move to continue and Nifty can test another milestone of 14,000 mark soon. On the domestic front, Auto sales numbers and PMI data would be actively tracked by participants ahead. Meanwhile, we suggest maintaining a positive yet cautious stance and avoiding contrarian trades.

HDFC twins, ICICI Bank among top contributors to Sensex today


Nifty sectoral indices at close | All indices, except, Nifty Pharma end in green


Sensex Heatmap | Top index gainers & losers

-- 26 Sensex stocks end in the green

-- Titan best Sensex performer

-- HUL top laggard
 

CLOSING BELL

Sensex scales fresh record high, rises 380 points or 0.81 per cent to end at 47,354; Nifty too logs new closing high of 13,873, up 124 points or 0.9 per cent

Heatmap: S&P BSE Sensex gainers and losers at this hour


Dixon soars 7% as arm inks pact with Motorola to manufacture smartphones

Shares of Dixon Technologies (India) rose 7 per cent to Rs 13,622 on the BSE on Monday after the company’s wholly-owned subsidiary Padget Electronics entered into an agreement with Motorola for manufacturing of smartphones. The products will be manufactured at Padget's manufacturing facility situated at Noida, Uttar Pradesh, the company said. READ MORE

Brexit to benefit select Indian firms, but only in the long-run: Analysts

The United Kingdom (UK) and the European Union (EU) last week struck a historic Brexit deal that cheered global markets, including investors back home. Though most analysts remain bullish on the prospects of companies that do business with the region, but caution that the benefit, if any, will be visible only over the long-term. READ MORE


Wipro's Rs 9,500 cr buyback opens tomorrow. Should you tender your shares?

IT services major Wipro's share buyback programme will commence on December 29 and close on January 11, 2021. In November, shareholders had approved the buyback plan for purchase of up to 23.75 crore equity shares at Rs 400 per share, aggregating to an amount of up to Rs 9,500 crore. The company has set December 11, 2020 as the record date for determining eligibility for the buyback. Siddharth Khemka, head of retail research at Motilal Oswal Financial Services, said that since the IT stocks, including Wipro, have done well over the past few months, investors looking for a payout can tender their shares. READ MORE

Sensex hits fresh record high in afternoon deals, tops 47,400


NEWS FLASH | TCS m-cap crosses Rs 11 lakh crore; stock hits 52-week high of Rs 2,498.20

Tata Motors, Infosys: How to trade UK-linked Indian stocks post Brexit deal

Tata Consultancy Services Limited (TCS): After hitting a new all-time high above Rs 2,873 recently, the stock is able to generate buying momentum at higher levels. The gradual upside toward this new high is witnessing a steady rise in the Relative Strength Index (RSI), which has successfully crossed the 55 value. Going forward, till the counter trades above Rs 2,800 levels on the closing basis, the upside move may see a rally in the direction of Rs 3,200 levels, as per the daily chart. READ MORE

Pilani Investments surges 14%, hits 34-month high ahead of 2:5 bonus issue

Shares of Pilani Investments and Industries Corporation soared 14 per cent to hit 34-month high of Rs 2,870 on the BSE in intra-day trade on Monday ahead of 2:5 bonus issue. The stock will turn ex-date for bonus shares on Thursday, December 31. The stock was trading at its highest level since February 2018. READ MORE

HDFC Bank, ICICI Bank, and RIL top contributors to Sensex's gain today


Nifty Pharma slips into the red, trades flat


NIIT hits 52-week high after board approves Rs 237 crore buyback proposal

Shares of NIIT rose 5 per cent to hit a fresh 52-week high of Rs 209.90 on the BSE in intra-day trade on Monday after the company on Thursday said its board has approved an up to Rs 237 crore buyback proposal at Rs 240 per equity share. The buyback price of Rs 240 per share is at a 20 per cent premium to Thursday's closing price. READ MORE


MARKET CHECK | BSE advance-decline ratio at nearly 2:1

At around 1.25 pm, 1,937 shares were gaining while 973 were in the red. Some 236 stocks hit 52-week highs and 35 were at 52-week lows.

SECTOR WATCH | BSE Realty best sectoral performer, rises nearly 4%


Oil trims losses after Trump signs aid bill; demand concerns linger

Oil pared some of its losses from earlier on Monday after U.S. President Donald Trump signed a $2.3 trillion coronavirus aid and spending package but lingering worries about near-term demand weighed on market sentiment. Brent crude futures were down 25 cents, or 0.5%, to $51.04 a barrel at 0700 GMT, having fallen as much as 1.5% to $50.53 a barrel earlier in the session. U.S. West Texas Intermediate (WTI) crude futures slipped 19 cents, or 0.4%, to $48.04 a barrel. (Source: Reuters)


India VIX rises 2%, hovers above 20 level


Dixon Technologies arm inks deal with Motorola Mobility

Dixon Technologies, a contract manufacturer in electronic goods, on Monday said its wholly owned subsidiary Padget Electronics Pvt Ltd has entered into an agreement with Motorola Mobility LLC for manufacturing of smartphones. "Dixon's wholly owned subsidiary Padget Electronics has signed an agreement with Motorola for manufacturing of smartphones," Dixon Technologies said in a regulatory filing.

2020, a 'gloom, doom and boom' year for metals amid Covid-19 pandemic

The year 2020 is one of those in which industrial commodities like metals and oil have seen extremes, both on the upside and downside. While Covid-19-led lockdowns across the globe destroyed demand in the early part of 2020, a supply cut-driven rally and sharp recovery in the auto sector have emerged as big themes. Domestic demand for these commodities, for instance, has seen a spike from September and is likely to increase further. READ MORE

MARKET UPDATE:: Broader indices outperform benchmarks


Dish TV slips 10% on demand notice of Rs 4,164 crore from govt

Shares of Dish TV India tumbled 10 per cent to Rs 13.35 on the BSE on Monday, falling 14 per cent in the past two trading days on profit booking after the company said it has received a demand notice from the government for payment of Rs 4,164.05 crore, which includes licence fee and interest. The stock of the broadcasting & cable TV operator hit a 52-week high of Rs 16.30 on Wednesday in intra-day trade. Prior to two days' decline, the stock had outperformed the market by surging 60 per cent in the month of December. READ MORE

Adani Group stocks in focus

COMPANY NAME LATEST HIGH LOW CHG(%)
ADANI POWER 50.15 50.15 47.85 4.92
ADANI PORTS 490.85 491.50 480.05 2.62
ADANI ENTERP. 501.30 501.35 473.00 5.94
ADANI TRANSMISSI 448.05 455.00 430.90 4.67
ADANI GREEN 1031.75 1045.90 1025.80 -0.39

Replacement market helps tyre cos end 2020 with better capacity utilisation

going up on the backdrop of demand recovery, mainly driven by the replacement market. While some players have deferred part of the capex, some have decided to expand ont the hope that demand will be better in the coming fiscal. According to Automotive Tyre Manufacturers' Association (ATMA), tyre production dropped by 30% during the first half of FY21 in view of lockdown and restrictions on mobility in the first quarter which severely hampered the production. Reduced demand from both replacement and OE segments also affected the production. READ MORE

Hindustan Foods advances 41% in 4 days

Shares of Hindustan Foods hit a fresh record high of Rs 1,459, rallying 12 per cent on the BSE in intra-day trade on Monday, after the company announced capex of Rs 125 crore to set up a manufacturing facility in north India as part of its goal to more than double its revenue to Rs 2,000 crore by fiscal year 2021-22. The company is one of India’s largest fast moving consumer goods (FMCG) contract manufacturer. In the last four trading days, the ctok has surged a massive 41 per cent. READ MORE


BUZZING STOCK:: Tips Music hits 20 per cent upper circuit after signing global licensing pact with Facebook


Top gainers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
FIRSTSOUR.SOLU. 108.80 18.39
NILKAMAL LTD 1558.00 9.42
GRINDWELL NORTON 754.20 7.42
MAHINDRA LIFE. 358.95 6.97
TATA ELXSI 1869.80 6.33
» More on Top Gainers

Market watch


Global Auto Sector Outlook 2021: Credit Suisse

Following a decline from 2018 to 2020 that was subsequently worsened by COVID-19, we expect global auto demand to return to growth from 2021. We forecast full-year global demand to drop 14.4% YoY for 2020. With global demand then starting to recover, we expect demand in 2021 to return to growth, estimating +10.1% YoY with solid recoveries in the US and China while maintaining a cautious stance on Europe, followed by +5.5% YoY and +3.0% YoY in 2022 and 2023. We expect each of the core Asian markets to either maintain solid levels or recover following the sharp downturn in 2020.

luxury car, automobiles

Jefferies on healthcare sector

We expect FY22 to be a recovery year for India Healthcare as operations continue to normalize post the Covid hit of FY21. With limited volume growth, large hospital chains will focus on case-mix and cost savings to drive EBITDA growth to FY23.

Our proprietary ratings framework weighs growth, risk and valuation for our coverage. Apollo is lowest risk given its pan-India footprint but captured in price. Initiate with BUY for Max and HOLD for Apollo and Fortis.



 

ICICI Securities on multiplexes

Multiplexes are beneficiaries of rising income levels and spend on entertainment and family outing. They have evolved from being just movie theatres to that plus restaurants. Investors are concerned about the rise of streaming apps and direct digital releases of movies, we think India market is different and digital does not
impact multiplex prospects.

In fact, Covid could turn into a blessing in disguise for strong theatre chains that benefit from consolidation and rise in occupancy on normalisation. We remain positive on the sector and initiate coverage on PVR (target price: Rs,1679) and INOX (target price: Rs424) with BUY rating on both.

Paisalo Digital soars 20% after SBI Life buys 9% stake

Shares of Paisalo Digital soared 20 per cent to Rs 624.70 on the National Stock Exchange (NSE) in intraday trade on Monday, after SBI Life Insurance Company acquired 9 per cent stake in the finance company via open market. In the past two trading days, the stock has moved up 26 per cent. READ MORE

Emkay Global on telecom sector


MARKET COMMENT :: Chris Wood of Jefferies on Bitcoin

The long-established trend that investors are driven to invest in a stock the more it goes up in price, and the more “liquid” it becomes, also has extremely bullish implications for Bitcoin. The more liquid trading in Bitcoin becomes the more it is an increasingly viable “store of value” for the many institutional investors, not to mention hedge funds and family offices, who want such a hedge.


Christopher Wood

A story of revival amid Covid-19: People stayed home but bulls ran wild

It was a year characterised by wild swings. While slowing economic growth was a worry, the onset of the Covid-19 pandemic caused a crack that led India's leading indices to lose more than a third of their value in less than five weeks. The indices staged a sharp recovery after May, and are set to end 2020 with gains of more than 80 per cent over March 23 lows, largely driven by easy liquidity sloshing across the globe and the resulting deluge of overseas inflows. READ MORE


Market flush with IPO but small firms struggled to raise capital in 2020

Small and medium enterprises (SMEs) struggled to raise money from the stock market this year as larger ones gained from an influx of liquidity. The SME segment raised Rs 159.1 crore in 2020, shows data from primary market tracker Prime Database. This translates into a 0.63 per cent share of the total money raised through initial public offers, according to data till November. This is the first time that that the SME’s share of IPO funds has dropped below one per cent since a separate segment for such companies began in 2012. READ MORE


Firstsource Solutions jumps 16% to hit new high; stock zooms 48% in 4 days

Shares of Firstsource Solutions rallied 16 per cent to hit a fresh record high of Rs 106.40 on the BSE on Monday on the back of heavy volumes. The stock of the global provider of Business Process Management (BPM) services has zoomed 48 per cent in the past four trading sessions. On Thursday, the stock hit an intra-day high of Rs 94, surpassing its previous high of Rs 93, touched on May 15, 2007. READ MORE
 

Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 10.31 2.08
SUZLON ENERGY 5.67 5.00
PUNJAB NATL.BANK 31.65 0.64
DISH TV INDIA 14.30 -3.51
FIRSTSOUR.SOLU. 106.25 15.61
» More on Most Active Volume

MARKET VIEW | V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The market appears to be back on "Buy on dips mode" aided by sustained FII buying. An important trend is the increasing strength of financials, particularly private sector banking stocks. Data and indications from top bankers suggest that the banking sector is reviving quicker than expected. NPAs in the banking system is likely to be much lower than initially feared. This explains the rising delivery based buying in frontline banking stocks. The market is all set to scale another record high.

Tata Motors gains 4% after UK, EU agree historic Brexit trade deal

Shares of Tata Motors rose 4 per cent to Rs 183.50 on the BSE on Monday after the United Kingdom (UK) and the European Union negotiators finalized their historic post-Brexit trade agreement. The European Union so far has been a ‘single market,’ for the Tata Motors-owned Jaguar Land Rover (JLR) but this is set to change after the UK’s exit from the European Union. Meanwhile, in the past two trading days, the stock of Tata Motors had climbed 8.5 per cent after the company maintained profitability guidance for its luxury car maker JLR. READ MORE



Paisalo shares rally 17% as SBI Life picks stake in firm

  • SBI Life Insurance Company on Thursday said it has acquired nearly 9 per cent stake in non-banking finance company Paisalo Digital for about Rs 186.20 crore through the open market.
     
  • SBI Life has acquired a total of 38,00,000 equity shares equivalent to 8.99 per cent at Rs 489.99 per share for a cash consideration as an ordinary course of business on the stock exchange on December 24, it said in a regulatory filing.

SECTOR WATCH:: Nifty Metal index up 2%


Ultratech shares edge higher on fund raising plans

The company is considering a proposal to raise funds through the issue of 10,000 rated, listed, non-convertible, redeemable, unsecured NCDs worth Rs 10 lakh each, aggregating to Rs 1,000 crore on a private placement basis, on or after December 30, 2020.

DLF shares gain over 3% in early trade

  • Realty major DLF's rental arm DCCDL has agreed to acquire the entire 52 per cent stake of US-based Hines in a premium commercial project in Gurugram for Rs 780 crore.
     
  • In a regulatory filing late last night, DLF informed that its joint venture firm DLF Cyber City Developers (DCCDL) has "entered into a securities purchase agreement with funds managed by Hines for acquisition of their stake in Fairleaf Real Estate, which owns and operates 'One Horizon Center'."

Buzzing Stock :: Coal India shares gain 2%

State-owned Coal India on Thursday said its board has given in-principle approval for venturing into aluminium and solar sectors and creation of special purpose vehicles (SPVs). Coal India (CIL), which accounts for over 80 per cent of domestic coal output, has expertise in mining.

Dish TV shares tank 6%

  • Dish TV on Friday said it has received a demand notice from the government for payment of Rs 4,164.05 crore, which includes licence fee and interest.
     
  • The Ministry of Information and Broadcasting (MIB) through a letter dated December 24, 2020 asked the Essel group firm to pay the said sum towards licence fee from the period from the date of issuance of DTH licence till the financial year 2018-19, the company said in a regulatory filing.

Shares of NIIT rise nearly 3% after board approves buyback of 98.75 lakh equity shares


SECTOR WATCH

All sectors on NSE in the green; banks, metals and realty lead among gainers

Private lenders, Reliance Industries among top Sensex contributors at this hour


Nifty tops 13,850 at opening tick


OPENING BELL: Sensex jumps 300 points, hits fresh record high


Stocks to watch today

Cadila Healthcare: Drug firm Zydus Cadila on Thursday said its vaccine against COVID-19, 'ZyCoV-D', has been found to be safe and immunogenic in the Phase I/II clinical trials, and the company is seeking regulatory approval to commence Phase-III trials.
 
NIIT: The board of NIIT has approved buyback of 98.75 lakh equity shares of face value of Rs 2 each. The buyback amounts to 6.97 per cent of the total equity. Teh buyback price of Rs 240 per share is at a 20 per cent premium to Thursday's closing price. READ MORE

COMMODITY CHECK


Nifty jumps 150 points to 13,750 in pre-open trade


Sensex gains over 100 points in pre-open session


Bulk deals on NSE as on Thursday

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


SGX Nifty trades higher

>> At 8:48 am, the index was ruling over 100 points higher at 13,866 levels, indicating a firm start to the markets.

Rupee check

(Source: Bloomberg)


Asian markets check

-- Asian shares ticked up on Monday as a source said U.S. President Donald Trump signed into law a $2.3 trillion pandemic aid and spending package he had until now refused to sign.

-- Japan’s Nikkei inched up 0.4 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent, though trade is slow with many markets still closed for holiday.

(Reuters)


NEWS ALERT | US President Donald Trump signs $2.3 trn pandemic aid

-- Trump had earlier suggested he would block it

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