Markets end at new closing high: Sensex up 235 points, Nifty above 10,450

Benchmark indices ended on closing high on Tuesday as BJP's wins in key state elections continued to boost sentiment, with auto stocks leading the gains, while strength across Asian markets also lent support.

Blue chips benefited after PM Narendra Modi’s Bharatiya Janata Party sealed victories in his home state of Gujarat and Himachal Pradesh, raising hopes of continued reforms.

Auto stocks contributed the most to the indexes’ gains, with NSE Auto index climbing as much as 3.4% to a record high. 

Focus will now shifts to macros and earnings recovery now that the aseembly elections in Gujarat and Himachal Pradesh are out of the way.  

On Monday, Sensex tanked 867 points (2.6%) on opening as early trends showed Rahul Gandhi-led Congress ahead of the ruling Bharatiya Janata Party (BJP) in Gujarat — a state it has governed for 22 years. The 30-share index, however, settled the day 138 points higher.  

3:42 PM IST Nifty Auto hits new high Source: NSE

3:41 PM IST Sectoral Trend Source: NSE

3:39 PM IST Top Sensex gainers and losers Source: BSE

3:36 PM IST Broader Markets In broader markets, both BSE Midcap and Smallcap indices outperformed benchmark indices, up 1.5% each

3:34 PM IST Markets at close The benchmark indices ended at new closing highs after Modi's BJP won Gujarat and Himpachal Pradesh elections. The S$P BSE Sensex ended at a new closing high of 33,836, up 235 points while the broader Nifty50 index settled at new closing high of 10,472, up 83 points

3:20 PM IST Maurti Suzuki enters top-5 club of most valuable companies   Maruti Suzuki India hit a new high of Rs 9,768, up 5% on the BSE in intra-day trade, making its entry into the list of the top-5 most valuable companies by market capitalisation (m-cap).   With an m-cap of Rs 294,641 crore, Maruti Suzuki India now features at fifth rank in the list by replacing fast moving consumer goods (FMCG) company Hindustan Unilever (HUL) from this prestigious club.  HUL have m-cap of Rs 291,382 crore at 02:48 pm, the BSE data shows.   Thus far in the calendar year 2017 (CY17), Maruti Suzuki India has outperformed the market by surging 83% as compared to 27% rise in the S&P BSE Sensex. HUL was up 63% during the same period. READ MORE

3:12 PM IST World Bank lifts China's GDP outlook to 6.8%, maintains 2018 forecast   The World Bank on Tuesday raised its forecast for China's economic growth in 2017 to 6.8% from 6.7% it projected in October, as personal consumption and foreign trade supported growth.   But the Washington-based lender kept its forecast for China's 2018 and 2019 GDP growth unchanged at 6.4% and 6.3%, respectively, due to less accommodative monetary policy and the government's effort to rein in credit and control leverage.   The key downside risks to the forecast are the still rising leverage of the non-financial sector and uncertainty around housing prices. READ MORE

2:59 PM IST Auto stocks ride higher   Shares of automobile companies were on a roll with the S&P BSE Auto index and Nifty Auto index hitting their respective new highs on Tuesday on expectation of pickup in demand.   Motherson Sumi Systems, Bharat Forge, Hero MotoCorp, TVS Motor Company and Eicher Motors were up between 3% and 4%, while, Ashok Leyland, Tata Motors, Maruti Suzuki India and Bajaj Auto up 2% on the BSE. READ MORE

2:47 PM IST Bharat Wire Ropes gains after winning new orders   Bharat Wire Ropes rose 12.73% to Rs 128 on BSE after the company said it won new orders worth about Rs 48 crore from domestic and international market.   The announcement was made during trading hours today, 19 December 2017.

2:31 PM IST Dr Reddy's settles 6-yr-old drug packaging case with US govt for $5 mn   Dr Reddy’s Laboratories Ltd will pay $5 million to resolve US claims that the Indian company sold prescription drugs in the United States in packaging that was not tested for child safety, according to court papers filed on Monday.   The settlement was disclosed in documents filed in federal court in Trenton, New Jersey, over a year after the US Consumer Product Safety Commission voted to refer a case involving the drugmaker to the US Justice Department.   Dr Reddy’s in a statement said that the safety of patients and consumers was of “paramount importance” to the company. It said it disagreed with the allegations but agreed to the settlement to avoid prolonged litigation. READ MORE

2:15 PM IST Sugar shares gain   Shares of sugar companies were in focus and rallied up to 8% on the bourses after Indian Sugar Mills Association (ISMA) said the buying interest is improving, while the stock holding limit on traders has also been removed, which should boost sugar demand and sales.   Thiru Arooran Sugars, Kesar Enterprises, Mawana Sugars, Uttam Sugar Mills, Triveni Engineering Industries, Shree Renuka Sugar and Simbhaoli Sugars were up more than 5% on the BSE.    India's sugar production rose 30% to 69.4 lakh tonne during the first two and half months of the current marketing year on higher cane output, according to industry body ISMA. READ MORE

1:56 PM IST Source: NSE

LIVE UPDATES

Nifty Auto hits new high

Source: NSE

Sectoral Trend

Source: NSE

Top Sensex gainers and losers

Source: BSE

Broader Markets

In broader markets, both BSE Midcap and Smallcap indices outperformed benchmark indices, up 1.5% each
Markets at close

The benchmark indices ended at new closing highs after Modi's BJP won Gujarat and Himpachal Pradesh elections.

The S$P BSE Sensex ended at a new closing high of 33,836, up 235 points while the broader Nifty50 index settled at new closing high of 10,472, up 83 points
Maurti Suzuki enters top-5 club of most valuable companies
 
Maruti Suzuki India hit a new high of Rs 9,768, up 5% on the BSE in intra-day trade, making its entry into the list of the top-5 most valuable companies by market capitalisation (m-cap).
 
With an m-cap of Rs 294,641 crore, Maruti Suzuki India now features at fifth rank in the list by replacing fast moving consumer goods (FMCG) company Hindustan Unilever (HUL) from this prestigious club.  HUL have m-cap of Rs 291,382 crore at 02:48 pm, the BSE data shows.
 
Thus far in the calendar year 2017 (CY17), Maruti Suzuki India has outperformed the market by surging 83% as compared to 27% rise in the S&P BSE Sensex. HUL was up 63% during the same period. READ MORE
World Bank lifts China's GDP outlook to 6.8%, maintains 2018 forecast
 
The World Bank on Tuesday raised its forecast for China's economic growth in 2017 to 6.8% from 6.7% it projected in October, as personal consumption and foreign trade supported growth.
 
But the Washington-based lender kept its forecast for China's 2018 and 2019 GDP growth unchanged at 6.4% and 6.3%, respectively, due to less accommodative monetary policy and the government's effort to rein in credit and control leverage.
 
The key downside risks to the forecast are the still rising leverage of the non-financial sector and uncertainty around housing prices. READ MORE
Auto stocks ride higher
 
Shares of automobile companies were on a roll with the S&P BSE Auto index and Nifty Auto index hitting their respective new highs on Tuesday on expectation of pickup in demand.
 
Motherson Sumi Systems, Bharat Forge, Hero MotoCorp, TVS Motor Company and Eicher Motors were up between 3% and 4%, while, Ashok Leyland, Tata Motors, Maruti Suzuki India and Bajaj Auto up 2% on the BSE. READ MORE
Bharat Wire Ropes gains after winning new orders
 
Bharat Wire Ropes rose 12.73% to Rs 128 on BSE after the company said it won new orders worth about Rs 48 crore from domestic and international market.
 
The announcement was made during trading hours today, 19 December 2017.
Dr Reddy's settles 6-yr-old drug packaging case with US govt for $5 mn
 
Dr Reddy’s Laboratories Ltd will pay $5 million to resolve US claims that the Indian company sold prescription drugs in the United States in packaging that was not tested for child safety, according to court papers filed on Monday.
 
The settlement was disclosed in documents filed in federal court in Trenton, New Jersey, over a year after the US Consumer Product Safety Commission voted to refer a case involving the drugmaker to the US Justice Department.
 
Dr Reddy’s in a statement said that the safety of patients and consumers was of “paramount importance” to the company. It said it disagreed with the allegations but agreed to the settlement to avoid prolonged litigation. READ MORE
Sugar shares gain
 
Shares of sugar companies were in focus and rallied up to 8% on the bourses after Indian Sugar Mills Association (ISMA) said the buying interest is improving, while the stock holding limit on traders has also been removed, which should boost sugar demand and sales.
 
Thiru Arooran Sugars, Kesar Enterprises, Mawana Sugars, Uttam Sugar Mills, Triveni Engineering Industries, Shree Renuka Sugar and Simbhaoli Sugars were up more than 5% on the BSE. 
 
India's sugar production rose 30% to 69.4 lakh tonne during the first two and half months of the current marketing year on higher cane output, according to industry body ISMA. READ MORE
Source: NSE
Top Sensex gainers and losers

Source: BSE

Market Check

Index Current Pt. Change % Change
 
S&P BSE SENSEX 33,678.07 +76.39 +0.23
 
S&P BSE SENSEX 50 10,860.42 +27.92 +0.26
 
S&P BSE SENSEX Next 50 36,091.01 +355.73 +1.00
 
S&P BSE 100 10,892.09 +41.07 +0.38
 
S&P BSE Bharat 22 Index 3,734.75 +10.93 +0.29

Bitcoin trading: I-T issue notices to 400,000 HNIs across India
 
Widening its probe into bitcoin investments and trade, the Income Tax (I-T) department is set to issue notices to 0.4 million to 0.5 million high networth individuals (HNI) across the country who were trading on the exchanges of this unregulated virtual currency.
 
The taxman had conducted surveys at nine such exchanges last week to check instances of tax evasion. READ MORE
Buzzing stock
 
Kridhan Infra soared 17% to Rs 117 on the BSE in noon deal after the foreign portfolio investor (FPI) bought the stake in the company through open market. The trading volumes on the counter more than doubled with a combined 6.24 million shares changed hands on the BSE and NSE till 12:17 PM. READ FULL REPORT


Key events to drive markets in coming quarters
 
The Indian markets and avid political enthusiasts have largely digested the mandate given by the Gujarat and Himachal Pradesh election verdicts, as the actual numbers indicate the average of what most exit polls were predicting. Though volatility and knee-jerk reactions in the financial markets for potential election outcomes are expected, it has been witnessed historically that election verdicts do not alter the course of the financial market direction in the long run. Putting things into perspective, in the next few days, the markets shall move on, putting the election outcome behind it, and start focusing on core issues that actually justify the valuations the financial markets derive. Let me put through the chain of events that can drive market direction in the next few quarters: CLICK HERE TO READ MORE
Reliance Securities on Central Depository Services’ (CDSL) 
 
CDSL’s business is characterised by a high degree of predictability and profitability, with the company earning >35% of revenue from annual issuer charges in FY17, which are likely to remain stable-to-growing.
 
The company has steadily gained market share in its core business vis-à-vis its lone competitor, NSDL and has enjoyed higher incremental market share 4 successive years on low operating cost, net worth criteria and technology investment. 
 
CDSL has also invested in new business initiatives to drive growth, including KYC services, National Academic Depository, insurance repository services, e-voting to corporates, online drafting solutions, KYC search assistance for Aadhaar holders and GST Suvidha Provider. 
 
At the CMP, the stock trades at a PE of 29.9x/26.5x FY19E/FY20E EPS, respectively. 
Buzzing stock
 
Gandhi Special Tubes surged 16% to Rs 405, also its 52-week high on the BSE in intra-day trade, after the company announced that its board approved share buyback at a price of Rs 500 per share through tender offer.
 
“The company to undertake a buyback of up to 880,000 equity shares of Rs 5 each aggregating up to 5.99% of the total paid up capital of the company at a price of Rs 500 per share, on proportionate basis through tender offer,” Gandhi Special Tubes said in a BSE filing. READ FULL REPORT
Market volatility to rise in 2018
 
The wild 1,200-point swing in the benchmark Sensex on Monday suggests elections will be one of the most important drivers and a source of high volatility for the markets in 2018. At least eight states will go to polls next year, each of whom will be closely tracked by the markets to get a hint as to what could be in store for the all-important general elections in 2019, say equity market experts. READ MORE
BSE Smallcap index hits new high 
 
The S&P BSE Smallcap index hit a new high of 18,441.54 on the BSE in intra-day on Tuesday, after strong rally in consumer electronics, infrastructure, auto ancillary, iron & steel products, textiles and sugar sector stocks.
 
The index surpassed its previous high of 18,411.37 touched on December 1, 2017 in intra-day trade. READ FULL REPORT
Markets check 

Index Current Pt. Change % Change
 
S&P BSE SENSEX 33,689.08 +87.40 +0.26
 
S&P BSE SENSEX 50 10,865.97 +33.47 +0.31
 
S&P BSE SENSEX Next 50 36,083.17 +347.89 +0.97
 
S&P BSE 100 10,896.35 +45.33 +0.42
 
S&P BSE Bharat 22 Index 3,744.18 +20.36 +0.55

Source: BSE
Milkfood zooms 50% in three days 
 
Milkfood hit 52-week high of Rs 434, up 18% on the BSE in early morning deal, extending its past two days rally, after the company reported 73% growth in net profit at Rs 2.85 crore in September quarter (Q2FY18).
 
The company engaged in dairy products business had profit of Rs 1.65 crore in the same quarter last year. It recorded a net loss of Rs 1.06 crore in previous quarter. READ MORE
2017: A record breaking year for the domestic MF Industry
 
India's mutual fund industry witnessed an incredible journey in 2017.
 
The sector, crowded with over 40 players, added as much as assets in a single year as it could manage during the first two decades of its existence. The year saw the industry break previous records it had set during the 2006-07 Bull Run. The total assets under management (AUM) hit historic highs, investor count rose climbed new peak and inflows through the systematic investment plan (SIP) route saw huge improvement. READ FULL REPORT
Sectoral trend 

Source: NSE

Bitcoin climbs as futures debut fails to incite attack by shorts
 
The arrival of a new futures contract that makes it easier to place short bets on bitcoin wasn’t enough to undercut the cryptocurrency’s march toward $20,000.
 
The digital token, up about 20-fold this year, added another 4.8 per cent from its New York close on Friday to $18,379 as of 9.24 local time, according to prices on Bloomberg. READ MORE
Sensex heatmap at open

Source: BSE

Markets at open
 
At 9:18 am, the S&P BSE Sensex was trading at 33,732, up 130 points, while the broader Nifty50 was ruling at 10,414, up 26 points. 

Index Current Pt. Change % Change
 
S&P BSE SENSEX 33,722.63 +120.95 +0.36
 
S&P BSE SENSEX 50 10,879.41 +46.91 +0.43
 
S&P BSE SENSEX Next 50 36,023.82 +288.54 +0.81
 
S&P BSE 100 10,904.66 +53.64 +0.49
 
S&P BSE Bharat 22 Index 3,742.60 +18.78 +0.50

Source: BSE

All-time high of 10,490 a key level to watch out for
 
A highly volatile session on Monday saw the Nifty swing through 350-points before it settled strongly up as the Gujarat election verdict came through. The Nifty hit a low of 10,074 points in the morning before it tested 10,443 on the upside, before finally settling just below 10,400. The most likely pattern now is range trading again between 10,100 and 10,450.
 
There are signs that the intermediate downtrend marked through the past few weeks is over. There is also a relatively small chance that we’ll see a new all-time high soon. READ MORE
Nifty outlook by Prabhudas Lilladher
 
The day began with a negative sense with Nifty making a low of 10,075 and immediately bounced back to confirm a double bottom formation at 10,080 levels and bounced back to 10,400 levels. The support for the day is seen at 10,330 while resistance is seen at 10,430. READ MORE
Technical calls
 
BUY TCS 
 
CMP: Rs 2580.50               
STOPLOSS: Rs 2400                 
TARGET: Rs 2800
 
Today's picks
 
Devangshu Datta on Nifty, Bank Nifty, Coal India, Mahindra & Mahindra, Hindalco
 
Wall Street on Monday

Wall Street hit record closing highs on Monday as optimism increased about the likelihood of lower corporate tax rates as the Republican tax bill moved closer to passage. The Nasdaq surpassed the 7,000-point mark during the session but closed below that level.
 
The Dow Jones Industrial Average rose 140.46 points, or 0.57% to 24,792.2, the S&P 500 gained 14.36 points, or 0.54% to 2,690.17 and the Nasdaq Composite added 58.18 points, or 0.84% to 6,994.76.
Asian markets

Asian stocks advanced on Tuesday. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2%.
 
Australian shares added 0.4%, South Korea’s KOSPI climbed 0.6% and Japan’s Nikkei gained 0.2%.
Singapore Nifty
 
At 9:50 am, the SGX Nifty was trading at 10,427, up 26 points or 0.25%, indicating positive opening for the markets.
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