MARKET WRAP: Sensex up 147 pts, Nifty holds 12,250; Infy gains nearly 1.5%

Topics MARKET WRAP | Markets

markets
Indian equities logged gains for second straight day as positive global cues supported investment sentiment. No further rhetoric between the United States and Iran, and British Parliament's vote to finalise Brexit divorce deal by January 31 gave boost to investment sentiment. 

Indices further charged ahead and scaled intra-day high after news agency Reuters reported that US President Donald Trump could sign the Phase-1 of trade deal next week. The S&P BSE Sensex hit a high of 41,775.11 (up 322.76 points) in the intra-day deals, while NIfty50 touched 12,311.20 -- also its fresh lifetime high. 

At close, the Sensex was at 41,599.72 level, up 147.37 points or 0.36 per cent with ICICI Bank, IndusInd Bank, Axis Bank, and Titan being top laggards. On the other hand, Infosys, Sun Pharma and Ultra Tech Cement settled as the top gainers. 

The broader Nifty50 index, on the other hand, was 40.60 points, or 0.33 per cent, higher at 12,256.50-mark at close. 

Sectorally, Nifty Private Bank and Nifty Bank indices were the only indices that closed in the red, down 0.22 and 0.02 per cent, respectively. Nifty Realty and Metal indices, however, added 1.80 and 1.10 per cent, respectively by close. 

In the broader market, the S&P BSE mid-cap index gained 0.4 per cent to close at 15,157.77, while the S&P BSE small-cap index advanced 0.45 per cent to end at 14,153.18. 

GLOBAL CUES

World shares hit a record high on Friday as relief over the de-escalation of US-Iranian tensions prompted investors to bet on faster global growth, especially in the technology sector.

MSCI’s broadest gauge of the world’s stocks in 49 countries rose modestly to hit an all-time high and its index of Asia-Pacific shares outside Japan gained 0.44 per cent to its best levels since June 2018.

Japan’s Nikkei rose 0.44 per cent while Chinese shares slid a little but stood not far from their eight-month peaks.

In Europe, shares were little changed on Friday ahead of a key payrolls data from the United States, while airline stocks benefited from weak oil prices as tensions in the Middle East faded. The pan-European STOXX 600 Index was 0.03% higher by 2:37 pm.

(With inputs from Reuters)


4:00 PM IST The major development during the week was the spike in geopolitical tensions between the US and Iran, prompting the markets to nosedive in the first half of the week. However, as the tension between the two warring nations subsided over the next few days, the Sensex rebounded sharply thereafter from initial slump. Further, crude prices too cooled off after rising to as high as USD 70 per barrel. ONGC, Hero Motocorp and Bajaj Finance were among the top losers in the BSE-30 Index, while Ultratech Cement, TCS and HCL Technologies bucked the trend and emerged top gainers. On the economy front, the NSO expects FY2020 real GDP growth to decelerate to 5% from 6.8% in FY2019. FPIs bought equities worth US$105 million over the past five trading sessions while DIIs sold US$26 million worth of shares in the same period.

3:43 PM IST

3:43 PM IST

3:36 PM IST The S&P BSE Sensex ended 152 points or 0.37 per cent higher at 41,604.66 while NSE's Nifty ended at 12,256.50, up 41 points or 0.33 per cent. 

3:29 PM IST Shares of Tata Motors hit an eight-month high of Rs 199, up 3 per cent on the BSE on Friday after its UK arm Jaguar Land Rover (JLR) reported retail sales of 52,814 vehicles for December 2019, up 1.3 per cent from the previous year. The stock of Tata Group commercial vehicles major was trading at its highest level since May 7, 2019. READ MORE

3:19 PM IST >> ED has summoed Shah in Rs 2,000 cr forex case >> ED will give fresh date to Shah

3:17 PM IST

3:07 PM IST

3:00 PM IST

2:44 PM IST

2:43 PM IST

LIVE UPDATES

Market Closing Comment :: Sanjeev Zarbade, VP PCG Research, Kotak Securities

The major development during the week was the spike in geopolitical tensions between the US and Iran, prompting the markets to nosedive in the first half of the week. However, as the tension between the two warring nations subsided over the next few days, the Sensex rebounded sharply thereafter from initial slump. Further, crude prices too cooled off after rising to as high as USD 70 per barrel. ONGC, Hero Motocorp and Bajaj Finance were among the top losers in the BSE-30 Index, while Ultratech Cement, TCS and HCL Technologies bucked the trend and emerged top gainers. On the economy front, the NSO expects FY2020 real GDP growth to decelerate to 5% from 6.8% in FY2019. FPIs bought equities worth US$105 million over the past five trading sessions while DIIs sold US$26 million worth of shares in the same period.

Nifty snapshot at close


Sensex heatmap at close


MARKET AT CLOSE

The S&P BSE Sensex ended 152 points or 0.37 per cent higher at 41,604.66 while NSE's Nifty ended at 12,256.50, up 41 points or 0.33 per cent. 

Tata Motors hits 8-month high post JLR December retail sales numbers

Shares of Tata Motors hit an eight-month high of Rs 199, up 3 per cent on the BSE on Friday after its UK arm Jaguar Land Rover (JLR) reported retail sales of 52,814 vehicles for December 2019, up 1.3 per cent from the previous year. The stock of Tata Group commercial vehicles major was trading at its highest level since May 7, 2019. READ MORE

NEWS ALERT | ED Mumbai summoned Rashesh Shah yesterday, he couldn't turn up: ED sources to CNBC TV18

>> ED has summoed Shah in Rs 2,000 cr forex case

>> ED will give fresh date to Shah

MARKET CHECK


NEWS ALERT | Reports of ED summons to Rashesh Shah are completely 'false & baseless': Edel Fin sources to CNBC TV18


Dec Auto Sales | JLR global retail sales for the month, up 1.3% at 52,814 units YoY: Tata Motors


NEWS ALERT | Zuari Agro Chemicals’ ammonia & urea plants in Goa resume production


NEWS ALERT | 0.9% equity of Pidilite Industries changes hands


Passenger vehicle sales dip 1.24% YoY in December; car sales down 8.4%

Domestic passenger vehicle sales declined 1.24 per cent to 2,35,786 units in December from 2,38,753 units in the year-ago period. Domestic car sales were down 8.4 per cent to 1,42,126 units as against 1,55,159 units in December 2018, according to data released by the Society of Indian Automobile Manufacturers (SIAM). READ MORE

Global Markets check

World shares hit a record high on Friday as relief over the de-escalation of US-Iranian tensions prompted investors to bet on faster global growth, especially in the technology sector.

MSCI’s broadest gauge of the world’s stocks in 49 countries rose modestly to hit an all-time high and its index of Asia-Pacific shares outside Japan gained 0.44 per cent to its best levels since June 2018.
 
Japan’s Nikkei rose 0.44 per cent while Chinese shares slid a little but stood not far from their eight-month peaks.
 
European shares look set to gain, with pan-European Euro Stoxx 50 futures trading up 0.29 per cent, German DAX futures up 0.26 per cent and FTSE futures up 0.42 per cent.
 
That followed record-setting in the pan-regional STOXX 600 index in Europe and the three major stock indexes on Wall Street on Thursday.

NEWS ALERT | 1.8 million vehicles produced in Dec, down 5.22% YoY: SIAM

>> A total of 1,816,112 vehicles, including Passenger, Commercial, Three-wheelers, Two-wheelers & Quadricycle were produced in December'19 as against 1,916,213 in December'18

>> Total exports of Commercial Vehicles dipped by 26.81% YoY

>> Total exports of Passenger Vehicles, Three-wheelers and Two-wheelers grew by 9.90%, 5.34% and 9.91% YoY respectively, in December'19

NEWS ALERT | Registration of passenger cars dips 8.4% YoY in Dec: SIAM

>> Sales of Utility Vehicles increased by 30.02% YoY

>> Commercial Vehicles sales decline 12.32% YoY in Dec

>> Two-wheelers sales dipped 16.60% YoY

>> Three-wheelers sales increased 22.10% YoY

MARKET UPDATE:: Sensex pares majority of the gains, turns flat


Rupee check


Margin contraction and competitive pressure may keep spirits low at USL

Investors in United Spirits (USL) did not make any money in 2019. The stock, which has underperformed the broader indices, ended marginally lower than the year-ago levels. From its September levels when it had peaked, the stock has shed about 11 per cent.  READ MORE

NEWS ALERT | Shriram Transport Finance raises $500 mn from International Bond Markets

>> Raised $ 500 million Fixed Rate Senior Secured 144A / Reg S Bond for a 3.5 year tenor at 5.100%


MARKET UPDATE:: Sensex pares some gains


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
VODAFONE IDEA 6.06 -0.20 -3.19 12668743
YES BANK 45.30 -2.00 -4.23 9947288
SUZLON ENERGY 2.63 -0.29 -9.93 5865398
BHARTI INFRA. 252.55 1.95 0.78 5738091
RELIANCE POWER 2.69 -0.14 -4.95 3858701
» More on Most Active Volum

MARKET ALERT :: Major Tata Group stocks rallied more than 10% in past one month

>> Tata Steel, Tata Motors, Tata Power, Trent and TCS  among notable gainers

NEWS ALERT | Uttam Prakash Agarwal's resignation likely due to corporate governance issue: sources to CNBC TV18

>> HIs tenure was to end in 2023

NEWS ALERT | Uttam Prakash Agarwal resigns from the board of YES Bank: sources to CNBC TV18

>> Agarwal was independent director and chairman of YES Bank's audit committee

Alert: Utta, Agarwal was appointed on the Board for 5 yrs, beginning Nov 14, 2018


BUZZING STOCK:: Sun TV zooms 8%


Sector Watch | Nifty Realty index hits fresh 52-week high of 311, up 2%



Broader markets outperform benchmarks


Infosys extends gains, up 2% ahead of Q3 results


Contribution to S&P BSE Sensex's gain today


SC stays NCLAT order restoring Cyrus Mistry as Tata Sons' chairman

The Supreme Court on Friday stayed the NCLAT order restoring Cyrus Mistry as executive chairman of the Tata Sons. A bench of Chief Justice S A Bobde and Justices B R Gavai and Surya Kant agreed to hear Tata Sons' plea challenging the National Company Law Appellate Tribunal (NCLAT) decision and issued notices to Mistry and others. READ MORE

Tata Steel gains 2% as domestic sales volume grows 17% QoQ in December qtr

Shares of Tata Steel moved higher by 2 per cent to Rs 494 on the BSE on Friday after the company’s provisional domestic sales volume increased by 17 per cent sequentially in December quarter (Q3FY20) on improved market sentiment. “Sales volume to auto segment was maintained during the quarter. Branded product & retail segment grew 23 per cent quarter on quarter (QoQ) while industrial products and projects grew 12 per cent QoQ. Tata Steel India’s production volume was flattish on QoQ basis,” the company said in a press release. READ MORE

Chart Check: Can QIP help Bharti Airtel stock to close above Rs 480?

Bharti Airtel's stock has never closed above Rs 480. Not even when the stock hit its lifetime high of Rs 498 in intra-day trade on November 2017. Back in 2007, the stock hit a high of Rs 479 and has crossed Rs 480 level over five times since, only to close below the said level, daily chart shows. It climbed to Rs 485.60 in December 2019, but again inched lower by the session's end. This establishes a selling pressure for Airtel's stock in the range of Rs 480 – Rs 500 levels as per the daily chart. READ MORE

Nifty sectoral indices at this hour


Tata Group stocks surge after SC observation in Cyrus Mistry case

COMPANY NAME LATEST HIGH LOW CHG
(Rs)
CHG(%) VALUE
(rs CR)
VOLUME
TATA MOTORS 194.45 194.80 190.65 2.40 1.25 15.08 775728
TATA MOTORS-DVR 80.45 80.60 78.75 0.95 1.19 3.64 452545
TATA STEEL 493.45 493.90 479.95 10.45 2.16 19.59 397006
TATA POWER CO. 59.50 59.50 57.40 1.70 2.94 2.01 337901
TATA GLOBAL 341.10 342.70 329.80 12.60 3.84 6.27 183789
TATA CHEMICALS 688.10 693.60 677.65 12.65 1.87 3.30 47947

NEWS ALERT | Supreme Court stays NCLAT order reinstating Cyrus Mistry as Executive Chairman of Tata Sons

>> NCLAT seems to have committed errors in adjudicating, says CJI

>> The appellate tribunal seems to lack powers to pass the directions that it has: CJI

>> Cyrus Mistry tells SC, we are not interested in relief; our contentions on wrongful removal, prejudice have been uploaded.
 
>> Says, We don't want to be reinstated

 

MARKET UPDATE:: Nifty hits 12,300 for the first time


Market check


MARKET UPDATE:: Nifty hits fresh record high, approaches 12,300


NEWS ALERT | SC requests K'taka HC to dispose off Vijay Mallya's asset sale case in 6 mths: ET Now

Alert: HC allowed DRT officer to sell 2.8% share worth Rs 1025 cr in United Breweries.

Sterlite Technologies up 4% as arm acquires 13% stake in Israel-based ASOCS

According to the company's exchange filing, ASOCS is a pioneer in virtual Radio Access Networks (vRAN) and a provider of "fully virtualized, NFV-compatible virtual Base Station solutions for Enterprise and Telco-Networks".
 
The company did not disclose the transaction value, but said that the cash consideration would be paid in two tranches, one as on date, and one in May 2020. READ MORE

BROKERAGE RADAR | NBFC Q3 preview by Emkay Global Financial Services

We expect NBFCs to report another soft quarter amid a slowing economy, limited availability of funds (especially from capital markets) and conservative lending practices. Weak AUM growth sequentially, along with consistent pressure on margins and elevated credit costs, will keep the bottom line under constraints, in our view. However, numbers are expected to be strong on a yoy basis due to an exceptionally weak Q3FY19 (quarter after the IL&FS default).

BROKERAGE RADAR | IT services Q3 preview by Kotak Securities

The set-up for CY2020 has positives from potential improvement in US BFS demand and many verticals in healthy shape. Headwinds are in the form of weak Europe BFS, challenged clients in retail and noise and some potential impact on demand in the US presidential election year. In the usual course one can call the direction of business growth at the beginning of the year, though CY2020 appears to be a challenge noting various moving parts.

BROKERAGE RADAR | Motilal Oswal Financial Services on Automobiles

  • In our view, the best risk-adjusted way to play this theme would be to focus on companies offering higher probability of volume recovery, and high operating leverage.
  • From this perspective, we believe MSIL and EIM are best positioned for a sustained recovery, led by company-specific drivers and the least impact from the BS6 transition.
  • Apart from operating leverage, both these companies offer scope of a gross margin improvement.
  • A sustained volume recovery could drive a mean reversion of profitability by FY22, leading to earnings upgrade. Valuations are reasonable considering they are based on early cycle earnings of FY21/22.

BROKERAGE RADAR | ICICI Securities on Astral Poly Technik

RECO: HOLD
 
CMP: Rs 1,128
 
Target Price: Rs 1,075
 
Impressive volume growth in both pipes and adhesives segments, expected margin improvement in both the product segments and high free cash generation (with limited capex requirement) and consequent reduction of debt would drive the overall consolidated RoCEs of the company from 22.2% in FY19 to 29.5% in FY21E. This would enable the stock to sustain its premium valuations.

Pharma shares in focus; Dr Reddy's, Divi's, Granules hit 52-week highs

Pharma stocks were in focus on Friday with the Nifty Pharma index gaining nearly 2 per cent on report that brokerage firm Citi has upgraded Dr Reddy's to 'buy' from 'sell' and Lupin to 'neutral' from 'sell'. The foreign brokerage also said that valuations of pharma companies look reasonable. At 10:05 am, Nifty Pharma index was the top gainer among sectoral indices and was trading 1.6 per cent up as compared to 0.44 per cent rise in the benchmark Nifty50 index. READ MORE

NEWS ALERT | Govt may raise FDI limit in insurance, pension companies to 74% from 49%: Bloomberg

>> May allow foreign airlines to own Indian Airlines

NEWS ALERT | Trade deal to be signed with China in the coming week: Donald Trump, reports Reuters

STOCK ALERT :: 0.3% equity of Bharti Infratel trade on BSE


Market check | Sensex near day's high


KNR Constructions up 11% as it sells entire stake in KNR Walayar Tollways

The enterprise value of the assets for this transaction is Rs 529.27 crore excluding claims receivable from National Highway Authority of India (NHAI) and other governmental instrumentalities, which would be passed through to the Company as and when realized, it added. READ MORE

Infosys gains nearly 2% ahead of Q3 results

The IT bellwether is scheduled to release its quarterly numbers around 3:45 pm today. Following the release, the management team will hold a press conference around 4:30 pm. READ MORE   

Intraday tech call by Nirmal Bang Securities

BUY SPARC above Rs 173.4

STOP LOSS: Rs 68

TARGET PRICE: Rs 184

After a gap of 7 years, gold ETFs witness inflows worth Rs 16 cr in 2019

Investors infused Rs 16 crore in gold exchange-traded funds (ETFs) in 2019, after pulling out money from safe-haven assets in the last six years, on fears of a slowdown in the global market and volatility in equity and debt markets. READ MORE

Market check | Sensex pares early gains


ADAG stocks slip in trade

 
 

Nifty PSU Bank index trades 0.2% lower


Bharti Airtel trades higher as fundraiser garners $10 billion


Tata Global Beverages gains over 2%


Sadbhav Infra Project trades nearly 2% higher

>> Reliance Mutual Fund A/C Nippon India Equity Hybrid Fund bought 1 crore shares of the company through a bulk deal on January 10 on BSE.


Delta Corp rises over 3%

>> Subsidiary in Nepal has been issued a license for operating a casino in Nepal.


Infosys trades a per cent higher ahead of Q3 nos


Sterlite Tech gains nearly 4%

>> Subsidiary will buy 12% stake in Israel-based company ASOCS.


Q3 Result impact | Emami Paper Mills locked in 10% upper circuit band

>> Q3 profit jumps to Rs 18.5 cr versus Rs 5.7 cr, revenue up 7.4% at Rs 400.1 cr YoY.


Q3 Result impact | GTPL Hathways surges 8%

>> Q3 profit up 98% to Rs 39 cr versus Rs 19.7 cr, revenue doubles to Rs 674 cr vs Rs 314.5 cr YoY.


Sectoral trends at NSE during Opening trade


Top gainers and losers on S&P BSE Sensex during Opening trade


Market at Open


Market at Open


Telecom Q3 preview: Data subscriber additions, ARPU spike may dial in cheer

The October-December quarter is likely to yield healthy operational performance for telecom operators with data adoption, subscriber addition, and average revenue per user (ARPU) showing positive growth. READ MORE

Momentum picks by ICICI Securities


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


Market at Pre-open


Market at Pre-open


Rupee opening

Rupee opens unchanged at 71.21 against the US dollar

Havells' underperformance may take a while to reverse

When stocks in the cooling solutions segment such as Voltas, Blue Star, and Whirlpool delivered handsome gains, diversified consumer durables player Havells failed to live up to expectations. With the stock down 6.5 per cent in 2019, the question is how soon it can reverse the past year’s underperformance. READ MORE

NCDs provide interest income, but look at credit rating before investing

Muthoot Fincorp unveiled its fifth issue of secured redeemable non-convertible debenture (NCD) to raise Rs 480 crore on Thursday. This is the second issue to be announced within a week. Tata Capital’s NCD issue, which was launched on Monday, is already fully subscribed. READ MORE

NEWS ALERT | Crude steel production rises 6.7% QoQ in Q3FY20: Tata Steel Long


Insurers stay on sidelines as Mutual Funds step up purchase of shares

In 2019, mutual funds shopped for equities worth about Rs 53,000 crore, while domestic institutional investors (DIIs) bought shares worth Rs 42,000 crore, implying net selling by insurance companies. A similar trend has played out in the past eight years. MFs, on the other hand, have significantly ramped up their buying since 2015 driven by the surge in flows through systematic investment plans (SIPs), ploughing in Rs 4.1 trillion. READ MORE

Infosys Q3 preview: Commentary on BFSI and whistleblower probe report eyed

Information technology (IT) service provider Infosys Ltd is expected to post revenue growth of 0.9 per cent to 2.1 per cent on a sequential basis (in constant currency terms) for the quarter ended December 31. This could mainly be on account of the company’s cross-currency gains and business transfer of Eishtec in Ireland. READ MORE

Stock recommendations by Anand Rathi: Buy Shriram Transport Finance, HUL

NIFTY: BUY | TGT: 12,300 | SL: 121,25
 
Nifty closed well in the positive territory in the last trading session with a clear buy crossover in its daily as well as weekly momentum indicator MACD. The Index has bounced back quite a lot and now it has to take off 12,300 on immediate basis in order to come out of the range. On the lower side, there exists a support at 12,125, so till it’s not broken the probability of an upside is quite high. READ MORE

Derivatives strategy by HDFC Securities: Buy Tata Chemicals Jan Futures

Buy TATA CHEM JANUARY Future at Rs 679.50
 
Stop Loss Rs 670
 
Target Rs 700
 
Lot Size 900

Rationale:
 
We have seen Long build up in the Tata Chem Futures’ yesterday where we have seen a rise in Open Interest with the price rising by 1.6 per cent. READ MORE

Two stocks that Vaishali Parekh of Prabhudas Lilladher is bullish on

BUY BHARAT FORGE
 
CMP: Rs 507.30
 
TARGET: Rs 560
 
STOP LOSS: Rs 480
 
The stock has been in consolidation for quite some time and currently has given a breakout above the 500 levels to imply strength and has improved the bias and we anticipate further upside movement till 560 levels. The RSI also has indicated a trend reversal with a steep rise and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 560 keeping a stop loss of Rs 480. 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 were sharply lower from their highs hit in the wake of Iran’s missile attack

>> At 8:23 am, Brent Crude Futures stood at $65.17 per barrel-mark, down 0.31 per cent.

SGX Nifty

>> At 8:20 am, the Singaporean Exchange for Nifty Futures was at 12,265.5, down 9.5 points.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


Good morning!

Welcome to the Business Standard live blog.

Catch all the live market updates here.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel