MARKET WRAP: Sensex ends 139 pts higher in volatile trade; ONGC gains 5.7%

Topics Markets | Sensex | Nifty 50

Among sectoral indices on the NSE, Nifty Metal gained the most - up over 1 per cent to 3,146 levels
The domestic equity market ended Friday's volatile session on a positive note amid healthy buying in financial, oil and gas, metal, and FMCG stocks. 

The benchmark S&P BSE Sensex ended at 46,099, up 139 points, or 0.3 per cent while NSE's Nifty ended at 13,514, up 36 points, or 0.26 per cent. 

During the day, Sensex hit a record high of 46,309.63 while Nifty scaled an all-time peak of 13,579.35. 

On a weekly basis, Sensex gained 2.2 per cent while Nifty added 1.9 per cent. 

Shares of state-owned oil and gas companies rallied up to 10 per cent on the BSE in the intra-day trade on Friday as crude oil prices extended their northward journey. On Thursday, Brent crude price crossed $50 per barrel-mark for the first time since March on demand recovery and hopes of Covid-19 vaccine.

ONGC ended 5.68 per cent higher at Rs 96.80 on the BSE. 

In the broader market, the S&P BSE MidCap index ended 0.15 per cent higher at 17,521 points and the S&P BSE SmallCap index settled 0.51 per cent higher at 17,553 points.

Among sectoral indices on the NSE, Nifty Metal gained the most - up over 1 per cent to 3,146 levels. On the other hand, Nifty Pharma slipped 0.6 per cent to 12,366 levels. 
  
Global markets

Asian shares rose on Friday as progress on Covid-19 vaccines boosted investor sentiment, but tricky Brexit negotiations and US stimulus talks capped gains in riskier assets.

Overnight on Wall Street, the Dow Jones Industrial Average fell 0.23 per cent, the S&P 500 lost 0.13 per cent and the Nasdaq Composite added 0.54 per cent.

In commodities, oil rose, adding to sharp gains overnight that saw Brent top $50 for the first time since March, as the rollout of coronavirus vaccination programmes fed hopes that demand for fuel would rebound up next year.

(With inputs from Reuters)

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Market Stats

  • BSE advance-decline ratio in favour of gainers
  • 275 stocks hit 52-week highs while 46 hit 52-week lows
  • 445 scrips touched upper circuit limits while 169 hit lower circuits
 

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

Market opened well, but lost all the gains and turned negative for some time during the day. Fortunately in the last trading minutes, it made a good attempt to bounce back and closed marginally above. Gains made in sectors like energy, FMCG and metals were countered by selling in pharma and IT stocks. This muted momentum was due to a weak global trend. Despite European Central Bank's announcement of an increase in the stimulus package, European markets fell as it was over weighed by increasing chance of a no-deal Brexit, rising virus cases and moderate usages of the announced stimulus plan. Instability was also seen in the US market with a sudden spike in the volatility index (VIX) and selling in tech stocks.

Broader markets largely outperform benchmark

Broader market indices largely outperformed benchmark Nifty50. The Nifty Smallcap index added 0.63 per cent while the Nifty Midcap index gained 0.22 per cent. The broadest index on NSE, Nifty 500 rose as much as 0.27 per cent.

COMMENT | S Ranganathan, Head of Research at LKP Securities

Markets witnessed a volatile trading session but ended the week well over 46k amid renewed interest in PSU names across sectors on hopes of divestment and dividend expectations from cash-rich PSU companies. Bouts of profit booking was seen in afternoon trade across sectors and stocks which seems healthy for the markets

Nifty sectoral indices at close

Nifty Pharma emerged as worst sectoral loser, down 0.60 per cent, followed by Nifty IT and Nifty Auto.

Top Sensex contributors today: ICICI Bank, ITC, NTPC


MARKET AT CLOSE | Gainers and losers on the S&P BSE Sensex


CLOSING BELL

The BSE Sensex ended 139.13 points or 0.30 per cent higher at 46,099.01 while NSE Nifty settled at 13,513.85, up 35.55 points or 0.26 per cent. 

ONGC trades 5.51% higher


Ircon International, PNC Infratech advance up to 9% on order wins

IRCON International was up 9 per cent at Rs 96.05 after the company said it has been awarded the work of upgradation of Gurgaon- Palaud,-Rewari section of NH-352W (design length of 46.110 km) 35 feeder route in Haryana on Hybrid Annuity Mode valuing Rs 900 crore on competitive bidding basis by National Highways Authority of India (NHAI). READ MORE 


Global market update: Stocks subdued by Brexit, US stimulus doubts

World shares slipped on Friday as tricky Brexit negotiations and uncertainty over US stimulus talks capped riskier bets even though COVID-19 vaccines made progress, pushing sterling down and keeping the dollar weak. European equities fell, with the broad Euro STOXX 600 down 1.1% and indexes in Paris and London losing 1.2% and 1% respectively.U.S. futures gauges fell 0.2%. (Source: Reuters)

S&P downgrades Sri Lanka's rating on rising external financing risks

With the implementation of expansionary budget measures in Sri Lanka, the country's fiscal position is expected to deteriorate materially over the next few years in the absence of favourable economic and financial conditions, S&P said in a statement. READ MORE

Fall from intra-day high today

COMPANY DAY'S HIGH(RS) DAY'S LOW(RS) LATEST(RS) FALL(%)
PC JEWELLER 27.80 24.50 24.90 -10.43
ALLCARGO LOGIST. 155.15 142.10 144.55 -6.83
S C I 89.95 83.15 84.00 -6.61
AEGIS LOGISTICS 266.85 247.35 249.30 -6.58
Click here for the full list

Festive demand lifts Nov domestic passenger vehicle sales by 13%: SIAM

According to the latest data by the Society of Indian Automobile Manufacturers (SIAM), two-wheeler sales rose 13.43 per cent to 16,00,379 units, compared with 14,10,939 units in the same month last year.
 
Motorcycle sales were at 10,26,705 units as against 8,93,538 units in November 2019, up 14.9 per cent. Scooter sales were also up by 9.29 per cent at 5,02,561 units, from 4,59,851 units in the same month last year. READ MORE

Hinduja Global soars 17% to hit a 52-week high; stock gains 25% in 3 days

Shares of Hinduja Global Solutions soared 17 per cent to Rs 1,148 on the BSE in intra-day trade on Thursday after the company’s subsidiary, HGS AxisPoint Health, partnered with Parkland Community Health Plan (PCHP) to provide disease management services to approximately 195,000 Medicaid beneficiaries in a seven-county area in North Texas. READ MORE
 

MARKET UPDATE:: Sensex extends losses


Dixon Technologies' stock has surged 37% in 2 mths; will the rally sustain?

Dixon Technologies is a key player in the nascent Indian EMS industry, which is likely to grow rapidly over the next few years. The Indian electronics and consumer durable industry is worth nearly Rs 4 trillion and is likely to grow rapidly to Rs 6 trillion by FY25E because of low current penetration levels. READ MORE

Market Update: Sensex off day's high amid losses in financials

BSE barometer Sensex wiped off all gains in the afternoon session on Friday amid losses in Axis Bank and HDFC twins. The index fell over 300 points to trade below the 46,000 mark. The 30-pack index had scaled all-time high of 46,309.63 in intraday trade.

Apollo Tyres hits 52-week high on heavy volumes, surges 66% in 3 months

Shares of Apollo Tyres advanced 7 per cent to hit a fresh 52-week high of Rs 194.70 on the National Stock Exchange (NSE) on Friday on the back of heavy volumes. The stock surpassed its previous high of Rs 191.80, touched on December 3, 2020. The trading volumes on the counter nearly doubled with a combined around 19 million equity shares changing hands on the NSE and BSE. In the past three months, Apollo Tyres' stock price has zoomed 67 per cent, as compared to 19 per cent rise in the Nifty50 index. READ MORE

MARKET CHECK


Q&A | Passive funds can make managers deliver better value: Tim Edwards, S&P Dow

When a passive option becomes available, it can put pressure on active managers to deliver better value. Furthermore, since some investors have the option to take a passive approach, money is often taken away from the least-skilled, or unluckiest, active managers who have been underperforming, and invested in an index-tracker instead. READ FULL INTERVIEW HERE
Tim Edwards, Managing Director, Index Investment Strategy, S&P Dow Jones

UPL recovers a day after tumbling 11%; here's what brokerages say

A day after tumbling nearly 11 per cent on reports that a whistle-blower had alleged corporate governance lapses in the company and that its promoters had siphoned off funds, shares of UPL recovered a bit and rose as much as 4 per cent to Rs 456.40 in the intra-day deals on Friday. In a clarification on the reports, the company said that this was an old matter and was reported to the audit committee in 2017. After an independent probe, the matter was closed, it said. READ MORE

Once new wage code kicks in, you may need to shed some debt weight

The government has notified the draft rules under the Code on Wages 2019. According to it, from April 2021 your wage (which includes basic pay and dearness allowance) must be at least 50 per cent of total pay for the purpose of calculation of gratuity and provident fund contributions. Experts say the new rules will enhance social security. READ MORE

Market Watch: BSE Smallcap index outperforms benchmark Sensex, up 0.85%

The BSE Smallcap index was trading 0.85 per cent higher in intraday trade at around 1 pm as against a 0.62 per cent rise in benchmark Sensex. Apollo Tyre, Vakrangee, Dixon and Persistent Systems were among the top index contributors.

ONGC, Oil India, Gail rally up to 10%; here is why

Shares of state-owned oil & gas companies rallied up to 10 per cent on the BSE in the intra-day trade on Friday as crude oil prices extended their northward journey. On Thursday, Brent crude price crossed $50 per barrel-mark for the first time since March on demand recovery and hopes of Covid-19 vaccine. Among individual stocks, ONGC rallied 10 per cent to Rs 101 in the intra-day trade amid reports that Morgan Stanley has upgraded the stock. Meanwhile, shares of Oil India and Gail gained 10 per cent and 7 per cent, respectively. READ MORE
 

Rebound in advertising, viewership help Zee Entertainment stock recovery

The Zee Entertainment Enterprises stock has gained 14 per cent over the last two weeks on expectations of a gradual uptick in advertising growth, increase in viewership share and hopes of a recovery of dues from group companies such as Dish TV. Despite the recent recovery, the stock has been a key underperformer over the last six months, compared with the benchmark indices and the S&P BSE100 index. READ MORE

Sebi to have dept to check price manipulation, misuse of IPO funds

To rein in misuse of the initial public offering (IPO) proceeds, the capital markets regulator Securities and Exchange Board of India (Sebi) is all set to have a separate specialised department, which will detect possible irregularities in the utilisation of net proceeds and even do forensic accounting of such firms. The move comes close on the heels of an extensive discussion it had with the finance ministry in November. READ MORE

IRCTC OFS retail quota subscribed 29% so far

The retail quota of offer for sale (OFS) by IRCTC was subscribed 29 per cent so far. The issue received a total bids for 6,89,794 shares against the issue size of 24,00,000 shares. The OFS witnessed a good response from non-retail investors yesterday as the issue was subscribed nearly two times on day one. Yash Gupta, Equity Research Associate at Angel Broking is neutral on the issue. "There will be very limited upside left for retail investors also there is no retail discount in this OFS," Gupta said.
 

ACC, Cipla: 66 stocks from Nifty 500 index are showing weakness on charts

The domestic stock market is on a record-breaking spree. On Friday, the benchmark S&P BSE Sensex hit a fresh all-time high of 46,309.63 during the intra-day deals while NSE's Nifty scaled a record peak of 13,579.35. Since their March 2020 lows, both Sensex and Nifty have jumped 80 per cent, each, NSE and BSE data show. However, amid this relentless rally, few stocks are showing weakness on their respective technical parameters. READ MORE

BUZZING STOCK:: Gillette rises 6%


MARKET UPDATE:: Sensex hovers near record high


Rising inflation, crude oil are a new worry for financial markets: Analysts

Over the past one month (since November 13), Brent crude prices have surged nearly 18 per cent to $50.34 a barrel now. According Barclays' estimates, a $10/barrel-increase in the price of crude oil, which implies Rs 5.8/litre increase at the pump, would add around 34 basis point (bp) to headline inflation over three to six months, assuming no change to petroleum taxes. READ MORE

Market Update: BSE advance-decline ratio at 3:1

The market mood was quite jovial in the late morning session on Friday. The advance-decline ratio on BSE stood at nearly 3:1 with 1,858 stocks in the green and 732 in the red. As mnay as 213 stocks hit 52-week highs on BSE and 323 scrips hit upper circuit limit. Meanwhile, BSE barometer Sensex was hovering at all-time highs amid vaccine optimism and mixed global cues. 

NMDC gains 5% on higher iron ore prices; stock surges 24% in a month

Shares of NMDC climbed 5 per cent to Rs 113.50 on the BSE on Friday on reports that the benchmark iron ore prices have crossed the $150/tonne mark. Iron ore prices are at their highest level since 2013 and are currently at $157/tonne. According to a Bloomberg report, futures in Singapore have surged almost 70 per cent this year, hitting their highest since trading started in 2013, as China’s stimulus-led rebound fuels steel output and consumption. READ MORE

Rebound in advertising, viewership help Zee Entertainment stock recovery

The Zee Entertainment Enterprises stock has gained 14 per cent over the last two weeks on expectations of a gradual uptick in advertising growth, increase in viewership share and hopes of a recovery of dues from group companies such as Dish TV. Despite the recent recovery, the stock has been a key underperformer over the last six months, compared with the benchmark indices and the S&P BSE100 index.READ MORE

Top gainers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
TVS SRICHAKRA 1952.50 9.86
DISH TV INDIA 13.33 9.71
O N G C 100.25 9.44
VAKRANGEE 47.50 9.07
MMTC 22.95 8.51
» More on Top Gainers

L&T trades higher for seventh straight day; stock hits over 9-month high

Shares of Larsen & Toubro (L&T) were trading higher for the seventh straight session on Friday, up 2 per cent at Rs 1,217 on the BSE, amid expectation that awarding momentum may pick up going forward. Stock of the construction & engineering major was trading at its highest level since February 26, 2020. In the past one month, L&T has outperformed the market by gaining 15 per cent as against a 6-per cent rise in the S&P BSE Sensex. READ MORE

Life insurers play tax-free interest arbitrage game to rev up business

November’s life insurance premium flow data came as a shocker after four consecutive months of promising growth. But here’s the interesting thing.
 
While the overall private life insurers’ premium inflows contracted by 7 per cent year-on-year, those of HDFC Life rose by 20.4 per cent and ICICI Prudential Life (I-Pru Life) and SBI Life witnessed 30.8 per cent and 5.7 per cent year-on-year decline in November. READ MORE

Logistics shares extend rally; Snowman Logistics gains 96% in 5 weeks

Snowman Logistics, Navkar Corporation, Allcargo Logistics, Transport Corporation of India and Mahindra Logistics were up in the range of 7 per cent to 14 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.58 per cent at 46,228 points, at 09:38 am. READ MORE

BSE Realty only sectoral index in the red, down 0.50%

In the sectoral space on BSE, Realty was the only index trading in the red amid fall in Godrej Properties, DLF and Prestige. Meanwhile, gains in Phoenix and Oberoi Realty helped limit losses.

Rupee Opening

Rupee opens unchanged per US dollar vs Thursday's close of 73.66/$

Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
SUZLON ENERGY 3.94 4.79
VODAFONE IDEA 9.86 0.10
S A I L 57.25 2.69
O N G C 97.45 6.39
BANK OF BARODA 67.60 1.88
» More on Most Active Volume

IRCTC shares fall over 1% as OFS opens for retail investors

Shares of IRCTC were trading over 1 per cent lower in the morning session on Friday as the OFS opened for retail investors. The scrip was down 1.27 per cent at Rs 1,434.85 on BSE at around 9.50 am. The offer-for-sale for IRCTC witnessed a good response from non-retail investors yesterday as the issue was subscribed nearly two times on day one. Retail investors will get chance to bid for the OFS today, which is the last day for the issue.

SECTOR WATCH:: Nifty PSU Bank index up 2%


Top Sensex contributors: HDFC, ICICI Bank, Reliance


SENSEX HITS FRESH RECORD HIGH OF 46,212.53


Logistics shares in focus; Allcargo Logistics soars nearly 11%


PNC Infratech surges over 5.5%

>> PNC Infratech Limited in Joint Venture with SPML Infra, has announced receipt of Letter of Acceptance (LOA) for an EPC roject for 10 years of Rural Water Supply Project in 952 villages in Devipatan Division of Uttar Pradesh. Approximate value of the Project is Rs 952 crore.


UPL gains 3% post mgt clarification

>> Shares of UPL will continue to be in focus on Friday after the management clarified that the matter flagged by a whistleblower was an old matter and was reported to the audit committee in 2017. After an independent probe, the matter was closed, it said


SpiceJet reclaims Rs 100-mark


ONGC advances over 5% amid rise in oil prices


Sectoral trends on NSE at Open


Sensex Heatmap at Open


Opening Bell


Opening Bell


Commodity Heatmap


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


Markets at Pre-open


Markets at Pre-open


BROKERAGE VIEW :: CLSA on Zee Entertainment

CMP: Rs 212.50 | TP: Rs 280 | Reco: Buy

>> Zee Entertainment Enterprises network viewership share is up 540bps from lows and up 160bps after Indian Premier League (IPL) games to 23%, above pre-Covid levels and led by increased viewership in Hindi and regional entertainment channels. 

>> These gains coincide with sharp ad spending recovery. Top-10 advertisers’ ad insertions have recovered to all-time highs and are up 38% YoY. The stock is up about 70% from March lows but with the return of ad growth and valuation at 12x, the PE offers value, in our view.

>> We retain a BUY rating and an Rs 280 target price.

Stocks to watch today

UPL: Shares of UPL will continue to be in focus on Friday after the management clarified that the matter flagged by a whistleblower was an old matter and was reported to the audit committee in 2017. After an independent probe, the matter was closed, it said.
 
PNC Infra: PNC Infratech Limited in Joint Venture with SPML Infra, has announced receipt of Letter of Acceptance (LOA) for an EPC roject for 10 years of Rural Water Supply Project in 952 villages in Devipatan Division of Uttar Pradesh. Approximate value of the Project is Rs 952 crore.
 
Ircon International (IRCON) has been awarded the work of upgradation of Gurgaon- Palaud,-Rewari section of NH-352W (design length of 46.110 km) 35 feeder route in the state of Haryana on Hybrid Annuity Mode valuing Rs.900 crore on competitive bidding basis by National Highways Authority of India (NHAI). READ MORE  


BROKERAGE VIEW :: MOFSL on L&T InfoTech

CMP: Rs 3,255 | TP: Rs 3,550 (+9%) | Reco: Buy

>> LTI has deep domain capabilities. Low exposure to segments that faced headwinds (legacy IMS, BPO) should be favorable in the current context.

>> The reinstatement of PAT margin guidance, the ability to sustain operational efficiencies (offshore), and strong deal pipeline indicate an optimistic outlook.

>> Industry-leading growth, RoCE, and prudent capital allocation should defend its rich multiples. We value the stock at 25x Sep’22E EPS (10% discount to our TCSvaluation). Maintain Buy.

Here's a Bull Spread Strategy on Tata Consumer Products

Buy Tata Consumer Dec 580 Call at Rs 26.5 & simultaneously sell Dec 620 Call at Rs 10.5
 
Lot Size: 1,350
 
Breakeven Poin: Rs 596
 
Rationale:
 
Long build up is seen in the Tata consumer Futures’ where we have seen 3 per cent rise in the Open Interest with price rising by 3 per cent. READ MORE

Bulk deals on the NSE as on Thursday

Bulk deals on the BSE as on Thursday

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


Rupee check

Source: Bloomberg


Oil price rally builds steam as coronavirus vaccine rollouts begin

>> Oil rose around 1% on Friday, extending a sharp rally overnight that saw Brent rise above $50 for the first time since March, as coronavirus vaccination rollouts kept hopes alive that demand for crude would build up next year.
 
>> Brent was up 45 cents or 0.9% at $50.70 a barrel, after gaining nearly 3% on Thursday. U.S. oil was up 50 cents, or 1%, at $47.28 a barrel, having also risen almost 3% in the previous session.

(Source: Reuters)

SGX Nifty Update

>> At 8:25 am, the index was at 13,531.5 levels, up 6.5 points

Asian markets mixed

Source: Reuters


Wall Street shakes off labor market data with stimulus in focus

Source: Reuters


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