MARKETS: Sensex up 428 on global cues; Nifty holds 12K ahead of FM presser

Markets
Indian equity markets edged higher for the third straight session as positive global cues fueled investors' risk appetite. While metal stocks charged ahead during Friday's trading session after US President Donald Trump said Washington and Beijing are very close to signing a “big” trade deal, auto stocks gained as Conservative leader Boris Johnson won election in the United Kingdom, paving way for Brexit-divorce deal by Janurary 31, 2020.

Besides, public sector banks (PSBs) rallied today after reports suggested that the government is considering increasing the government bond investment limit of foreign portfolio investors (FPIs) to at least 10 per cent of the outstanding, from 6 per cent now, with an aim to incorporate local bonds into global bond indices.

At close, the benchmark S&P BSE Sensex settled 428 points, or 1.05 per cent higher, at 41,009.71 level. Vedanta, Axis Bank, State Bank of India, ans Maurti Suzuki ended as the top gainers among the Sensex pack. On the contrary, Bharti Airtel, Bajaj Auto, and Asian Paints settled as top laggards. 

On the NSE, the Nifty50 closed near 12,100-mark, up 114 points, or 0.95 per cent, at 12,085.70 level. 

For the week, Sensex added 1.5 per cent, Nifty50 advanced 1.4 per cent, and Nifty Bank index gained 2.2 per cent. 

Sectorally, all the indices ended the day with gains. Nifty PSU Bank index gained the most, up nearly 4 per cent, followed by Nifty Metal index (up 2 per cent).

In the broader market, both, the S&P BSE mid-cap and small-cap indices closed 0.89 per cent higher at 14,824.80 and 13,334.45, respectively.

GLOBAL CUES

Asian share markets jumped on Friday as a last-gasp Sino-US trade deal and a likely major election win by Britain’s Conservative Party looked to have cleared a couple of dark clouds from the global horizon.

Japan's Nikkei index advanced 2.5 per cent, South Korea's Kospi 1.5 per cent, and China's Shanghai Composite index settled 1.8 per cent higher.

In Europe, pan-regional STOXX 600 share market jumped 1.5 per cent higher.

(With inputs from Reuters)

3:40 PM IST

3:39 PM IST

3:37 PM IST -- Indian equity markets edged higher for the third straight session as positive global cues fueled investors' risk appetite. -- At close, the benchmark S&P BSE Sensex settled 428 points, or 1.05 per cent higher, at 41,009.71 level.  -- On the NSE, the Nifty50 closed near 12,100-mark, up 114 points, or 0.95 per cent, at 12,085.70 level. 

3:26 PM IST

3:21 PM IST Dhampur, Dwarikesh, EID Parry, Balrampur Chini Mills surges over 4% COMPANY NAME LATEST HIGH LOW CHG (rs) CHG(%) VALUE (rs CR) VOLUME BAJAJ HINDUSTHAN 6.44 6.48 6.15 0.29 4.72 0.20 313172 BALRAMPUR CHINI 171.00 172.00 163.05 7.45 4.56 1.51 88042 EID PARRY 204.85 206.40 195.95 9.45 4.84 1.30 63527 DWARIKESH SUGAR 26.40 26.55 24.80 1.55 6.24 0.15 58066 SH.RENUKA SUGAR 7.95 7.98 7.70 0.34 4.47 0.04 56013

3:19 PM IST We have marginally raised our FY21 estimates to factor in benefit of price increases. We retain Hold rating on the stock with an unchanged price target of Rs 7,500. Valuations at 23.2x FY2022 earnings are expensive and at the higher end of the long term historical average. Any benefit provided by Government (personal income tax cut) could lift the demand and positively surprise earnings.

3:19 PM IST Ujjivan Small Finance Bank (SFB) saw a stellar listing and it closed at Rs56 vis-à-vis its listing price of Rs37 (+51% gains). The holding company’s stake post listing stands at 82%. The management has suggested that reverse merger discussions with the RBI will be renewed though alternatively they are exploring stake dilution via an OFS or an acquisition. Given the likelihood of further hold-co dilution, we recommend to Buy Ujjivan SFB and Sell Ujjivan Financial Services. H1FY20 saw robust AuM growth of 55% YoY with provision costs being intact at 82bps. Good management quality, strong Tier-1 capital at ~30% (post infusion) and controlled asset quality are key positives. See FY22E RoA/RoE at 2.6%/20%. We shift coverage to Ujjivan SFB and assign a Buy rating. Valuation at 2.3x FY22 ABV looks attractive

3:16 PM IST The Fed’s balance sheet expansion has helped to stabilize funding markets (even though turn -of-the-year funding remains tight), and the episode in September likely demonstrated to the Fed that reserves were too low, while there were a number of aggravating factors at the time (bond settlement, tax payments). We expect the Fed to continue expanding reserves to around USD1.6trn by Q2, which should significantly reduce the likelihood of an event similar to September. However, as the BIS highlighted in its recent quarterly review, there are a number of structural considerations that have raised the risk of a similar event occurring in the future.

3:15 PM IST With the threat of a hung parliament gone, as well as the extinguishing of a Labour threat to nationalise certain transport and utilities, UK risk assets should perform well. Assuming the previous deal agreed by PM Johnson and the EU is ratified by parliament, it remains to be seen how discussions concerning the UK's future relationship with the EU unfold. The strong performance of the Scottish National Party will almost definitely reopen the battle for Scottish Independence. London: Britain's Prime Minister Boris Johnson speaks during his ruling Conservative Party's final election campaign rally at the Copper Box Arena in London, Wednesday, Dec. 11, 2019 | Britain goes to the polls on Dec. 12 | AP/PTI  

3:11 PM IST Shares of real estate companies were in focus on Friday with Nifty Realty index rising 2 per cent, hitting an over five-month high led by DLF and Oberoi Realty. At 02:35 pm; Nifty Realty index was up 1.8 per cent at 287.50 points, as compared to 0.91 per cent in the benchmark Nifty 50. The realty index hit an intra-day high of 288.55, its highest level since July 5, 2019. The index is 2.4 per cent away from its 52-week high level of 295.50. READ MORE

3:09 PM IST

3:00 PM IST

LIVE UPDATES

Sectoral trends on NSE at close


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


Closing Bell

-- Indian equity markets edged higher for the third straight session as positive global cues fueled investors' risk appetite.

-- At close, the benchmark S&P BSE Sensex settled 428 points, or 1.05 per cent higher, at 41,009.71 level. 

-- On the NSE, the Nifty50 closed near 12,100-mark, up 114 points, or 0.95 per cent, at 12,085.70 level. 

Sharp fall in HDFC Bank


Sector watch :: Sugar stocks rally

Dhampur, Dwarikesh, EID Parry, Balrampur Chini Mills surges over 4%

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%) VALUE
(rs CR)
VOLUME
BAJAJ HINDUSTHAN 6.44 6.48 6.15 0.29 4.72 0.20 313172
BALRAMPUR CHINI 171.00 172.00 163.05 7.45 4.56 1.51 88042
EID PARRY 204.85 206.40 195.95 9.45 4.84 1.30 63527
DWARIKESH SUGAR 26.40 26.55 24.80 1.55 6.24 0.15 58066
SH.RENUKA SUGAR 7.95 7.98 7.70 0.34 4.47 0.04 56013

Sharekhan on Maruti Suzuki

We have marginally raised our FY21 estimates to factor in benefit of price increases. We retain Hold rating on the stock with an unchanged price target of Rs 7,500. Valuations at 23.2x FY2022 earnings are expensive and at the higher end of the long term historical average. Any benefit provided by Government (personal income tax cut) could lift the demand and positively surprise earnings.

Centrum on Ujjivan Small Finance Bank

Ujjivan Small Finance Bank (SFB) saw a stellar listing and it closed at Rs56 vis-à-vis its listing price of Rs37 (+51% gains). The holding company’s stake post listing stands at 82%. The management has suggested that reverse merger discussions with the RBI will be renewed though alternatively they are exploring stake dilution via an OFS or an acquisition.

Given the likelihood of further hold-co dilution, we recommend to Buy Ujjivan SFB and Sell Ujjivan Financial Services. H1FY20 saw robust AuM growth of 55% YoY with provision costs being intact at 82bps. Good management quality, strong Tier-1 capital at ~30% (post infusion) and controlled asset quality are key positives. See FY22E RoA/RoE at 2.6%/20%. We shift coverage to Ujjivan SFB and assign a Buy rating. Valuation at 2.3x FY22 ABV looks attractive

Nomura on US Fed

The Fed’s balance sheet expansion has helped to stabilize funding markets (even though turn -of-the-year funding remains tight), and the episode in September likely demonstrated to the Fed that reserves were too low, while there were a number of aggravating factors at the time (bond settlement, tax payments). We expect the Fed to continue expanding reserves to around USD1.6trn by Q2, which should significantly reduce the likelihood of an event similar to September. However, as the BIS highlighted in its recent quarterly review, there are a number of structural considerations that have raised the risk of a similar event occurring in the future.

Jefferies on UK election outcome

With the threat of a hung parliament gone, as well as the extinguishing of a Labour threat to nationalise certain transport and utilities, UK risk assets should perform well. Assuming the previous deal agreed by PM Johnson and the EU is ratified by parliament, it remains to be seen how discussions concerning the UK's future relationship with the EU unfold. The strong performance of the Scottish National Party will almost definitely reopen the battle for Scottish Independence.

London: Britain's Prime Minister Boris Johnson speaks during his ruling Conservative Party's final election campaign rally at the Copper Box Arena in London, Wednesday, Dec. 11, 2019 | Britain goes to the polls on Dec. 12 | AP/PTI
 

Sector watch: Nifty Realty index nears 52-week high; DLF hits 22-month high

Shares of real estate companies were in focus on Friday with Nifty Realty index rising 2 per cent, hitting an over five-month high led by DLF and Oberoi Realty. At 02:35 pm; Nifty Realty index was up 1.8 per cent at 287.50 points, as compared to 0.91 per cent in the benchmark Nifty 50. The realty index hit an intra-day high of 288.55, its highest level since July 5, 2019. The index is 2.4 per cent away from its 52-week high level of 295.50. READ MORE

Bharti Airtel extends losses


Sectoral indices at this hour


Heatmap: S&P BSE Sensex


BSE500 stocks that hit 52-week high today

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
CRISIL 1700.00 1728.00 -4.45 -0.26
DIVI'S LAB. 1844.70 1847.40 14.90 0.81
DLF 229.05 231.20 4.15 1.85
H D F C 2348.55 2365.00 30.15 1.30
ICICI BANK 539.40 542.60 4.35 0.81
» More on 52 Week High

Tata Global Beverages hits record high


HPCL most vulnerable to falling refining margins; RIL best placed

Brent crude prices have set a firm trend of late, but there are expectations of oil prices softening with a rise in US inventories. This is the reason benchmark Singapore gross refining margins (GRMs) continue to see softness.
 
This is not good news for Indian oil marketing companies (OMCs), which are feeling the heat of soft GRMs. The Indian Oil Corporation (IOC) and Hindustan Petroleum (HPCL) stocks have corrected more than 18 per cent since their highs in October. READ MORE

Stock Alert | ICICI Bank hits fresh life-time high

-- Fresh high of Rs 542.6

--  Over 11.2 million shares have changed hands on the NSE & BSE so far

DBS sees slow recovery for Indian economy, cuts GDP growth forecast to 5%

Singapore's DBS Banking group has cut India's GDP growth forecast for this fiscal to 5 per cent from 5.5 per cent earlier and said that it will be a "slow climb to recovery" for the economy.
 
The financial services major said India's economy sharply decelerated this year as the financial sector reported stress. READ REPORT HERE

BUZZING STOCK:: Mastek up 5%


Dr Reddy's falls 5% as rival firm beats Co to US FDA approval for EluRyng

Shares of Dr Reddy’s Laboratories slipped 5 per cent to Rs 2,773 on the National Stock Exchange (NSE) on Friday after rival firm Amneal Pharma received Abbreviated New Drug Application (ANDA) approval for generic birth-control product NuvaRing from the US Food and Drug Administration (US FDA). The stock was the biggest loser among the Nifty 50 pack in an otherwise strong market. READ MORE

Asian Markets check

Asian share markets jumped on Friday as a last-gasp Sino-US trade deal and a likely major election win by Britain’s Conservative Party looked to have cleared a couple of dark clouds from the global horizon.

In Asia, Japan's Nikkei climbed 2.1 per cent to a 14-month high, while South Korean stocks firmed 1.2 per cent. E-Mini futures for the S&P 500 ESc1 rose 0.4 per cent to another peak.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan put on 0.5 per cent.

MARKET UPDATE:: Sensex breaches 41,000-mark


Rupee check


Market check


Health check shows fortunes turning for NBFCs after prolonged crisis

The fortunes of India’s shadow banks are showing tentative signs of recovery, indicating that a prolonged credit crisis may be beginning to ease.
 
Two of four indicators compiled by Bloomberg that reflect the state of non-bank financial companies strengthened last month from October. A measure of top-rated five-year bond spreads got better, showing that shadow lenders’ borrowing costs are declining. A custom gauge of shares of 20 financial firms and other companies improved. READ MORE

Market Alert | Bank Nifty hits 32,000 in the intra-day trade


HDFC rallies 2% to hit all-time high of Rs 2,363; analysts remain bullish

Shares of Housing Development Finance Corporation (HDFC) hit an all-time high of Rs 2,363, up 2 per cent on the BSE on Friday after the company completed the acquisition of HDFC Credila Financial Services. The stock surpassed has its previous high of Rs 2,357 hit on July 18, 2019. “The Corporation has completed acquisition of 11.47 million equity shares, representing 9.12 per cent of total equity of HDFC Credila for a total consideration of Rs 395 crore, from its promoter Ajay Bohora and Anil Bohora,” HDFC said in a regulatory filing. READ MORE

Nifty sectoral indices at this hour


Indian bonds may extend losses with no let-up in bad news facing them

Indian bonds, the worst performer this month among Asian peers, may extend losses with no let-up in the bad news facing them.
 
The benchmark 10-year debt had sold off Wednesday evening after S&P Global Ratings warned of a downgrade, dealing a blow to an already frail sentiment. The Reserve Bank of India’s shock hold on rates last week led to the worst weekly fall in bond prices in more than one-and-a-half years. READ MORE

NEWS ALERT | FM likely to address media on recent cabinet decisions: TV reports

-- FM could explain in detail regarding amendmenrts to IBC, decisions on NBFCs and HFCs

-- FM could talk about GST revenue collection and compensation

-- FM could talk about state of economy

Sector watch :: Pharma stocks trade weak in a strong market; index down 0.8%


Chris Wood cuts India exposure; DLF replaces Godrej Properties in portfolio

Global investor and global head of equity strategy at Jefferies has cut his weightage on India by 2 percentage points in his Asia Pacific ex-Japan relative-return portfolio. Besides India, weightage of Indonesia, Thailand and Vietnam has also been cut by one percentage point each. On the other hand, exposure to Korea has been increased by 5 percentage points, Wood wrote in his weekly note to investors, GREED & fear.
 
Among the Indian basket of stocks, Wood has replaced his investment in Godrej Properties with DLF, which has found favour with other brokerages as well. Recently, analysts at Morgan Stanley had upgraded DLF to ‘overweight’ with a price target of Rs 269. READ MORE

Balkrishna Industries climbs 4%


NEWS ALERT | FM Nirmala Sitharaman to hold press conference at 3:15 PM today

Finance Minister Nirmala Sitharaman

MARKET UPDATE:: Trident hits 52-week high of Rs 7.80, up 17% in intra-day trade on BSE

-- The stock turned ex-date for stock split from Rs 10 to Re 1

Banks surge on report govt may raise bond investment limit for FPIs to 10%

Banking counters such as IDBI Bank, State Bank of India (SBI), YES Bank, and ICICI Bank, were trading higher on Friday after reports suggested that the government is considering increasing the government bond investment limit of foreign portfolio investors (FPIs) to at least 10 per cent of the outstanding, from 6 per cent now, with an aim to incorporate local bonds into global bond indices. READ MORE

Tata Motors surges 6%, hits over 6-month high; stock up 14% in two days

Shares of Tata Motors surged 6 per cent to Rs 184, an over six-month high level, in intra-day trade on Friday on the back of heavy volumes. The automobile major's stock has gained 14 per cent in the past two trading days on the BSE. It was trading at its highest level since May 28, 2019. At 10:56 am, Tata Motors had erased its early morning gain and was trading 4 per cent higher at Rs 180 on the BSE. In comparison, the S&P BSE Sensex was up 0.83 per cent at 40,916 points. READ MORE

NEWS ALERT | Mastek sells partial stake in Majesco US: BSE filing


Market check | Sensex near day's high


BUZZING STOCK:: Indiabulls Housing Finance ticks up 4%


NEWS ALERT | Grounded 3 B737 series freighter aircraft on advice of Israeli Aerospace Industries: SpiceJet


Contribution to Sensex's gain today


Metal shares gain as Trump signs phase one trade deal with China

Metal stocks, led by Vedanta and Tata Steel, gained in Friday's trade on the NSE after US President Donald Trump approved trade deal with China to halt December 15 tariffs. At 10:10 am, Nifty Metal index was the top gainer among Nifty sectoral indices and was trading 2.24 per cent higher as compared to 0.57 per cent gain in the benchmark Nifty50 index. READ MORE

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
VODAFONE IDEA 6.96 0.19 2.81 12848277
REL. COMM. 0.84 -0.03 -3.45 6554578
YES BANK 46.70 1.35 2.98 5143900
DISH TV 13.66 0.21 1.56 1835948
TATA MOTORS 181.40 8.05 4.64 1816000
» More on Most Active Volume

NEWS ALERT | Conservative Party wins 301 of 547 seats in UK elections: Reports

London: Britain's Prime Minister Boris Johnson

Budget 2020: Centre may announce increase in FPIs' debt limit to 10%

The Centre is considering increasing the government bond investment limit of foreign portfolio investors (FPIs) to at least 10 per cent of the outstanding, from 6 per cent now, with an aim to incorporate local bonds into global bond indices, according to sources close to the matter. The decision may be announced in the upcoming Budget.
 
FPIs, including long-term investors, can currently invest up to Rs 3.61 trillion in government bonds, of which they invested Rs 2.16 trillion as of December 12. However, the share allotted to FPIs is inadequate to be included in global bond indices such as those by JP Morgan and Bloomberg-Barclays. READ MORE

MARKET CHECK | Sensex extends gains


NEWS ALERT | No additional complaint received since Oct 24: Infosys

-- Says, Company is aware of several media stories referencing an additional securities class action lawsuit against Infosys. The Company is not aware of any additional complaints, other than the initial complaint, which was disclosed on October 24, 2019. 

Pharma stocks struggle in early trade


Bajaj Finance: Despite gains, risk of slowing consumer demand not priced in

A recent report by CRISIL stated that retail loan growth, at 12 per cent for the first half of the current financial year, was the slowest in five years for the industry. This has had little impact on Bajaj Finance, considered a barometer of consumer demand, which has nearly doubled year-to-date.
 
It has managed to rake in the gains despite its management turning cautious on the underlying demand nearly two quarters ago. READ MORE

Nifty PSU Bank index trades 2% higher


Ujjivan Small Finance Bank declines over 5%


Wipro trades half a per cent higher


Bharti Airtel slips in trade


Nifty Bank index gains over 150 pts; ICICI Bank hits fresh 52-week high


Tata Motors rises 3%

-- UK elections may see return of PM Boris Johnson, indicating smooth Brexit ahead

Metals stocks charge ahead; index top performer on the NSE


Dr Reddy's Labs declines over 3%


HDFC trades in the green


IDBI Bank surges 7%


Sectoral trends at NSE during Opening Trade


Top gainers and losers at S&P BSE Sensex during Opening Trade


Market at Open


Market at Open


Brokerages see global growth picking up next year, stay cautious on India

Even as growth rates pegged to be grinding lower in India in the next calendar year (2020, or CY20), global gross domestic product (GDP) rate is set to stabilise next year and start looking up from the second half of the year into 2021, leading brokerages have said.
 
However, for this to happen, they expect trade tensions to ease, jobs to grow and consumption in the US to remain robust and central bank stimulus to gain some traction. READ MORE

Top gainers and losers at S&P BSE Sensex during Pre-Open


Market at Pre-Open


Market at Pre-Open


Rupee opening

-- Rupee opens higher at 70.54/$ vs Thursday's close of 70.83 against the US dollar

-- Rupee opens at 2.5-month high

Stocks to watch: Metal stocks, Wipro, IndiGo, Bank of Baroda, Biocon

Here's a list of companies whose shares are expected to trade actively in today's session -
 
Metal stocks: President Donald Trump signed off on a phase-one trade deal with China, averting the December 15 introduction of a new wave of U.S. tariffs on about $160 billion of consumer goods from the Asian nation. 
 
Telecom stocks: Trai has hinted it may be open to the idea of setting a minimum tariff for calls and data to ensure viability of the sector. READ MORE

Bharat Bond ETF anchor book over-subscribed 1.7 times; LIC also places bids

In a circular issued on Wednesday, the Insurance Regulatory and Development Authority of India allowed insurers to invest in debt ETFs where the underlying debt securities are of public sector units (PSUs). Through a gazetted notification, units of debt ETF meant for investment in PSUs were included in the list of 'debt investments' for non-government provident funds, gratuity and superannuation funds. READ MORE

Derivative Strategy on Cholamandalam Invt & Fin Co by HDFC Securities

Buy CHOLA FINANCE DECEMBER Future at Rs 313
 
Stop Loss Rs 308
 
Target Rs 325
 
Lot Size 1000.
 
Rationale:
 
We have seen Long build up in the Chola Finance Futures’ yesterday where we have seen rise in Open Interest with price rising by 3.3%. READ MORE

Commodity outlook by Tradebulls Securities: Buy lead, natural gas

Buy Lead: TGT 157 Stoploss 151.50
 
Lead is making rounding bottom chart pattern on the daily scale. It has taken support around 151.60 and recovered till 153. The short term moving average of 20 and 50 have given buy cross over while price action is above 200 day moving average. RSI_14 is neutral with no divergence so we recommend long positions with target of 157 and stoploss of 151.50. READ MORE

Today's picks: From Bharti Infratel to NTPC, hot stocks to watch on Friday

Nifty
 
Current: 11,972 (12,022)
 
Target: NA
 
Stop long positions at 11,925. Stop short positions at 12,125. Big moves could go till 12,175, 11,800. A long Dec 19, 11900p (41), short 11800p (24) could gain 10-15 if the index tests 11,900. 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

-- Brent Crude Futures were at $64.67 per barrel, up 0.73%

SGX Nifty

At 8:17 AM, the Singaporean Exchange for Nifty Futures was at 12,057.5 levels, up 33 points, indicating a positive start for the Indian markets.

Asian Market check

Source: Reuters


US Market check

Source: Reuters


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