Sensex ends 400 points higher, Nifty closes at 12,250

PSU banks led the way for NIFTY 50 with 2.92 per cent surge

3.35 pm

 

Closing Bell:

S&P BSE Sensex after rising throughout the day, closed with 411.38 points or 1 per cent jump at 41,575.14.

NSE Nifty 50 closed at 12,250.70, thus zooming 124.15 points or 1.02 per cent.

Leading in the BSE Sensex 30-stock pack was Axis Bank and State Bank of India. The losers were Titan and UltraTech Cement.

In the broader benchmark Nifty 50, Coal India and Axis Bank gained the maximum at 3.37 per cent and 3.31 per cent, respectively. The losers in this list were Yes Bank, Wipro, and Kotak Mahindra Bank.

3.20 pm

Government increases capital infusion in IOB to ₹4,360 cr

Indian Overseas Bank (IOB) on Friday said it will get a fresh capital infusion of ₹4,360 crore from the government in the current financial year for meeting regulatory requirement.

In August, the finance ministry had announced a capital infusion of ₹3,800 crore in the state-owned lender. This has now been increased by ₹560 crore.

“The Bank has received vide letter dated December 25, 2019 for release of ₹4,360 crore towards contribution of the central government in the preferential allotment of equity shares (Special Securities/Bonds) of the Bank during 2019-20 as Government’s investment,” IOB said in a BSE filing.

Besides, the government has approved infusion of ₹2,142 crore in UCO Bank in line with what was announced in August this year.

Both the lenders are under the Prompt Corrective Action (PCA) framework of the Reserve Bank. - PTI

3.10 pm

Sensex, Nifty jump high

In the almost closing time, BSE Sensex has zoomed to 410 points or 1 per cent, at 41,574.10. The S&P BSE Energy sector indices made the way with 1.83 per cent change.

Meanwhile, NSE Nifty 50 stood at 12,247.00, making a rally of 120.45 points or 0.99 per cent. 1155 stocks advanced, 619 decline and 370 remained unchanged.

2.50 pm

India set to cross 100 GW renewable energy capacity mark in 2020

India is all set to cross the 100GW renewable energy capacity mark in 2020. It can also make rapid strides towards the ambitious 175GW clean energy target by 2022 provided the government keeps a close eye on key issues and deals with those well in time.

The Government, however, needs to promote storage to ensure 24X7 clean energy supply as coal fired thermal power still remains the base load in the country.

Presently, the issues hampering growth of renewables in India are lack of interest of financial institution to fund renewable energy projects, safeguard duty on imported solar panels, ambiguity over goods and services tax (GST) on solar equipment and low investor sentiment due to delayed or non-payment by discoms to clean energy developers.

Click here to read more

2.35 pm

Gold futures slip ₹52 to ₹38,830 per 10 gm

 

Gold prices on Friday fell by ₹52 to ₹38,830 per 10 gram in futures trade as participants cut down their bets amid a weak global trend.

On the Multi Commodity Exchange, gold prices for delivery in February fell by ₹52, or 0.13 per cent, to ₹38,830 per 10 gram in a business turnover of 16,303 lots.

The yellow metal for April delivery fell by ₹66, or 0.17 per cent, to ₹38,925 per 10 gram in 5,140 lots.

Analysts attributed the fall in prices to trimming of positions by investors, tracking a weak trend in global market.

Globally, gold was trading 0.07 per cent lower at $1,513.40 an ounce in New York.

2.20 pm

NSE Nifty 50 afternoon update

NSE Nifty 50-pack has been in the positive terrain the entire day. In the afternoon session, the Nifty 50 was at 12,212.85 with a 86.30 points or 0.71 per cent jump. The Nifty PSU Banks has been leading sectoral indices.

Here is overview of the sectoral indices in Nifty:

 

And here is the gainers and losers list for the afternoon:

 

2.10 pm

Sundaram-Clayton declares 3 non-working days at its plants

Auto-component maker Sundaram- Clayton Ltd on Friday said it has declared three days as non- working days following the business slowdown in the automobile industry.

“The company’s major plants have declared December 28, 30 and 31 as non-working days due to business slowdown across sectors”, the city-based TVS Group company said in a filing to the stock exchanges.

Several automobile firms, including Maruti Suzuki India Ltd, Hero MotoCorp Ltd had also announced non-working days for their factories in the past due to the slowdown in the automobile sector.

Early this month, commercial vehicle manufacturer Ashok Leyland had declared non-working days in a few plants to align production at its facilities in line with market demand.

Shares of Sundaram-Clayton Ltd were trading at ₹2,050 apiece in the BSE this afternoon.

1.45 pm

National Aluminium Company (NALCO) to revisit expansion plan

State-owned aluminium company Nalco is looking to revisit its expansion plans, Chairman and Managing Director Sridhar Patra said on Friday.

He however refused to give details as the plans have to be put before the board.

“We are revisiting (our expansion plans)...Whatever long-term plans you make, you cannot project for 10 or 15 years... because all the factors do not support in that manner,” Patra said on the sidelines of a mining summit organised by CII.

“We have to remodify...Whatever bottlenecks were there, we have removed almost all,” he said.

Click here to read more

Nalco shares were trading at ₹43.50.

1.30 pm

Sensex, Nifty rolling in green

The benchmark indices have been on a constant rise since the morning. Starting with a jump of 100 points in the early trade, BSE Sensex has now taken a 300 points jump. The Nifty 50 index has also been on a rally since morning, it now hovers around the 12,200 marks. 

At 1.27 pm, the BSE Sensex stood at 41,505.86, with a jump of 342.10 points or 0.83 per cent.  1394 stocks advanced, 937 declined and 156 remained unchanged.

Meanwhile NSE Nifty 50 was at 12,224.65 with a 98.10 points or  0.81 per cent jump. Nifty PSU banks have been leading the way since morning, wherein Allahabad Bank shares jumped 11 per cent and State Bank of India on a constant up move.

For more click here

 

1.15 pm

H G Infra shares zoom 11% as company bags highway project

Shares of H G Infra Engineering zoomed almost 11 per cent on Friday after the company bagged a highway project worth ₹522 crore in Haryana from the National Highways Authority of India (NHAI).

The company’s scrip rallied 10.35 per cent to ₹269 on the BSE.

On the NSE, it jumped 10.91 per cent to ₹269.80.

H G Infra has been declared L-1 (lowest) bidder by NHAI for construction of proposed Rewari bypass (NH-11) as feeder route in Rewari district in the state of Haryana...on hybrid annuity mode amounting to Rs 522.02 crore, the company said in a filing to the BSE on Thursday.

The completion period for the project, which has a total length of 14.40 km, is two years, the filing said. - PTI

1.00 pm

Sensex stock pack

Sensex currently is at 41,464.23, with 300 points or 0.73 percent jump.

Out of the 30-stocks in S&P BSE Sensex, 23 stocks have been on a positive mood with State Bank of India leading the pack.

12.45 pm

Nifty call: Nifty 50 January Futures (12,275)

The Indian benchmarks are on the rise today, following positive cues from the US market. Both the Nifty spot and the Sensex spot index are up by 0.7 per cent each. But the Asian indices are giving mixed cues; Nikkei is down by nearly 0.3 per cent and the Hang Seng is up by 1 per cent for the day.

The market breadth of the Nifty 50 index is showing bullish bias as 39 out of the 50 stocks have gained so far in today’s session. Also, all the sectoral indices are in the green, led by the Nifty PSU bank index, up by 3.1 per cent. Moreover, the market is witnessing lower volatility today as indicated by India VIX – the volatility index, which is down by 3.4 per cent to 10.75 levels. All these factors indicate a broad-based buying today.

Read more about the technical analysis here

12.30 pm

 

BSE Sensex Gainers and Losers:

IOB, Allahabad Bank are on the gaining run in the BSE Sensex list.

Whereas, Reliance Capital, Whirpool are on the losers list of BSE Sensex pack.

 

12.20 pm

Allahabad Bank shares jump 11% on capital infusion

Shares of Allahabad Bank jumped 11 per cent after the company said it will get a fresh capital infusion of ₹2,153 crore from the government in the current financial year.

The scrip climbed 10.98 per cent to ₹19.70 on the BSE. At NSE, it advanced 10.98 per cent to ₹19.70.

In terms of traded volume, 4.58 lakh shares of the company were traded on BSE and over 71 lakh shares on NSE during morning trade.

The Department of Financial Services in a letter on Thursday conveyed the sanction for release of the fresh capital infusion fund of ₹2,153 crore, Allahabad Bank said in a regulatory filing.

The capital infusion is towards contribution of the central government in the preferential allotment of equity shares of the bank during the financial year 2019-20 as the government’s investment, it said. - PTI

12.10 pm

Outlook bearish for MCX-Zinc

MCX-Zinc (₹177)

The spot price of Zinc on the MCX, after trading in a sideways trend since the beginning of December, closed below the range on Tuesday. It registered a fresh 11-month low of ₹176.

Likewise, the December futures contract of Zinc on the MCX closed at ₹176.25 on Tuesday, breaking below the range between ₹181 and ₹185. This opens the door for further decline in the contract price. The contract depreciated after failing to move past the 21-DMA resistance at ₹184. The daily Relative Strength Index (RSI) has made a new low, similar to the price action, indicating considerable strength in bearish momentum. Read more about the commodity here

11.55 am

Should you go for the Sensex’s latest?

The composition of market bellwether Sensex does not stay constant — it is altered regularly to represent the dominant stocks in the listed stock universe. The constituents of the Sensex were last changed on December 23; UltraTech Cement, Titan and Nestle India were added to the index to replace Tata Motors (and its DVR), YES Bank and Vedanta.

Do changes in the constituents of an index guarantee an upside in the stocks that have been included in it? Should you consider adding such stocks to your portfolio, too?

To know the answer for this, read here

11.40 am

 

Ashok Leyland, Citicorp Finance join hands for financing commercial vehicles

Hinduja Group’s flagship firm Ashok Leyland on Thursday said it has partnered with Citicorp Finance India Ltd for financing commercial vehicles.

The company has signed a memorandum of understanding (MoU) with Citicorp Finance to enter into a strategic financing partnership for two years, to offer customised financial solutions to customers across India, Ashok Leyland said in a statement. Under the MoU, Citicorp Finance will be a preferred financier for providing finance to the customers buying Ashok Leyland vehicles, it added. Read more about this deal here

Ashok Leyland shares are currently trading at ₹80.10, jumping 0.88 per cent.

11.25 am

Funds raised through IPOs in 2019 fall to four-year low despite buoyant market

Funds raised through initial public offerings (IPOs) plunged to a four-year low of ₹12,362 crore this year, against ₹30,959 crore in 2018 — a fall of 60 per cent year-on-year.

Despite the market hitting new highs, there were only 16 mainboard IPOs this year, against 24 last year.

The lowest-ever funds raised via IPOs was logged in 2014, when only five companies raised ₹1,201 crore, according to a Prime Database study.

About 47 companies looking to raise over ₹51,000 crore this year allowed SEBI’s approval to lapse, though the approval was valid for a year.

This year, companies raised ₹25,811 crore through offers-for-sale, ₹35,238 crore via qualified institutional placements and ₹7,132 crore through InvITs and REITs, according to Prime Database. Read about the ten IPO that gained mega response here

11.20 am

 

HG Infra bags Rs 522-crore project in Haryana

HG Infra Engineering Ltd, a road construction company, has won a Rs 522.02 crore project for construction of a bypass in Rewari district of Haryana.

HG Infra is the lowest bidder (L-1) for the Hybrid Annuity Model (HAM) based project, which was awarded by the National Highways Authority of India (NHAI), the company said in a statement. Read more here

At 11.03 am, HG Infra shares were up 6.38 per cent at Rs 259.30 on the BSE.

 

11.10 am

Bonds rally as RBI announces plan to purchase more G-secs

Benchmark sovereign bonds gained in India after the Reserve Bank of India (RBI) said it will buy long-end debt for a second week, stepping up the pace of its unconventional policy to lower borrowing costs.

The 10-year yield slid 7 basis points to 6.51 per cent, taking the weekly decline to nine basis points. Read more about this here

11.00 am

 

Rupee reaches 71.23 against US dollar

The Indian rupee opened on a positive note and rose 8 paise to 71.23 against the US dollar in early trade on Friday tracking gains in domestic equity market, even as crude oil prices firmed up.

Forex traders positive opening in domestic equities supported the rupee, while steady rise in crude oil prices and foreign fund outflows weighed on the local unit.

At the interbank foreign exchange, the rupee opened at 71.26 then rose to 71.23 against the dollar, showing a rise of 8 paise over its previous closing.

The rupee on Thursday had closed at 71.31 against the dollar.

Read more about this in detail here

10.50 am

Volatility index slumping to 11.12 suggests a positive start to 2020

The rollover data of Nifty 50 Futures signal the market may maintain the positive momentum in the New Year. Though the Nifty 50 Futures saw a rollover of about 69 per cent, against the three-month average of 72 per cent, most short positions were allowed to expire.

The India VIX fell by 20.5 per cent in this series and is now at 11.12, which is the lowest in several months. Lower volatility suggests that declines could be used by investors as a buying opportunity.

Read more about the Nifty 50 futures here

10.40 am

Many uncertainties led to a ‘gold rush’ in 2019

 

The year 2019 turned out to be a landmark for gold price movement. The yellow metal made a “super jump” of over ₹8,000 per tola (10 grams) in the Indian spot market, while internationally it jumped by $200 an ounce during the year that ends in a few days.

Briefly though, gold prices hit an all-time high of ₹40,000 levels in certain spot markets in the country, scaling up from about ₹31,500 at the beginning of the year.

Safe haven asset

Global geopolitical and economic uncertainties, coupled with India's own economic and political developments, kept investor interest alive for the safe haven asset.

International factors such as geopolitical tensions arising from the US sanctions on Iran, scepticism over US-North Korea relations and trade tensions between the US and China weighed on the global gold rates.

Central banks around the world also started stockpiling gold. According to World Gold Council data, gold purchases by central banks during 2019 jumped over 43 per cent to 629.4 tonnes (up to November 2019) as against 437.5 tonnes last year. Central banks of Turkey, Russia, Poland and China among others made heavy gold purchases during 2019.

Read more about this here

10.30 am

Infosys back in the good books of analysts

After months of turmoil, Infosys is back in the good books of analysts based on better visibility in terms of growth and stable margins, which were big pain points earlier.

Analysts at HDFC Securities, in a note to its investors, said there has been a greater focus on large deals, recovery in the top 25 and large account mining and the completion of accelerated investment phase. This is in spite of the recent whistleblower complaints that hit the Infosys management.

Analysts said Infosys has sharpened focus to increase its share within large accounts supported by the hiring of deal directors and increased engagement with deal advisers and consultants. The IT major is also chasing large public sector deals in the APAC and European region. Its partnership with Temasek and with Hitachi, Panasonic and Pasona in Japan are creating larger deal opportunities for the company in the APAC region. “Senior leadership bandwidth has increased around large deals from a deal inception stage,” the analysts said. Read more on this here

Currently Infosys on NSE is trading at Rs.730.40, gaining 1.50 points.

 

10.20 am

Broker's call: KEI Industries (Buy)

Capitalvia Global Research

KEI Industries (Buy)

CMP: ₹465.35

Target: ₹490

KEI Industries Ltd was incorporated in 1968 as partnership firm by the name Krishna Electrical Industries and started with manufacturing of switch board cables. It was converted into a public limited company in 1992, and in 1995 it got listed on the stock exchanges.

KEI Industries is engaged in manufacturing of low tension, high tension and extra high voltage cables, along with control and instrumentation and specialty cables, house wires and stainless steel wires.

Read more about the technicals here

10.10 am

 Gainers and Losers

In the broader NSE Nifty 50-pack, the top gainer today is State Bank of India with a 2.06 per cent change. The next in line are the shares of Zee Entertainment Enterprises Ltd, Power Grid, Yes bank and Bharti Airtel.

Top gainers of NSE Nifty 50

 

In the same Nifty 50 pack, the top loser are the shares of JSW steel at 1.36 per cent change. TCS, Wipro, Kotak Bank and Tata Steel also join the losers section.

Top losers of NSE Nifty 50

 

Under the 30-stock BSE Sensex, Allahabad Bank gained 8.45  per cent, while ICICI Securities Ltd showed 8.09 per cent change. Punjab National Bank, IDFC are showing positve trend.

The losers in this pack were Tata steel with 3.17 per cent change. Alkem Laboratories Ltd, Infibeam, Jindal Steel were the other top losers in the early trading session.

10.00 am

 

Daily Rupee Call: Buy on declines with stop loss at 71.6

The rupee (INR) weakened slightly on Thursday and it closed the session at 71.31 against the previous close of 71.27 against the dollar (USD). The immediate support from the current level is at 71.4.

As 71.4 is a substantial support, there is a likelihood that the downtrend may be arrested at that level. Taking that support if the local currency moves up, it will face a hurdle at 71.2. Above that level, the resistance is at 71.

For more on the technicals of rupee read here

9.50 am

 

Sensex jumps over 150 pts; Nifty near 12,200

Equity benchmark BSE Sensex jumped over 150 points in opening session on Friday tracking gains in index-heavyweights RIL, SBI and HDFC twins amid positive global cues.

The 30-share BSE index was trading 161.85 points or 0.39 per cent higher at 41,325.61, and the broader NSE Nifty rose 57.70 points or 0.48 per cent to 12,184.25.

SBI was the top gainer in the Sensex pack, rising up to 2.14 per cent, followed by PowerGrid, Axis Bank, Bharti Airtel, Reliance Industries (RIL), Maruti and HDFC twins.

On the other hand, TCS was the top loser, shedding up to 0.68 per cent. Tata Steel, HUL, HCL Tech, Bajaj Auto and Tech Mahindra were also trading in the red.

In the previous session, the 30-share gauge ended 297.50 points, or 0.72 per cent, lower at 41,163.76. Similarly, the Nifty closed 88 points, or 0.72 per cent, down at 12,126.55.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 504.13 crore, while domestic institutional investors purchased shares worth Rs 120.46 crore on Thursday, data available with stock exchange showed.

According to traders, domestic equities followed global stocks that rose on easing trade tension between the US and China.

Domestic market is expected to wait for cues from the budget, they said.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading significantly higher in their respective early sessions.

Shares on Wall Street too ended on a positive note on Thursday.

Brent futures, the global oil benchmark, rose 0.16 per cent to USD 68.03 per barrel.

Meanwhile, the rupee appreciated 5 paise to 71.25 against the US dollar in morning session.- PTI

9.40 am

 

Broker's call: Voltas (Reduce)

IndiaNivesh

Voltas (Reduce)

CMP: ₹651.7

Target: ₹608

Despite two consecutive years (FY19 and FY20E) of strong growth in the UCP (unitary cooling products) segment, we are factoring in a 15 per cent growth in FY21E (in-line with the management commentary). On other hand, we expect 9 per cent y-o-y growth in the EMPS (electromechanical project space) segment against the management’s flattish growth outlook for FY21E.

We estimate FY20E EBIT per cent for UCP/EMPS segment at 11 per cent/7 per cent (in-line with the management commentary), respectively. Despite 14.4 per cent/27.1 per cent revenue/EBITDA CAGR during FY19–21E, we expect losses at Beko to be the spoiler. This can be gauged from the RoEs, which are expected to be limited to 13.3 per cent in FY21E (vs 15.7/14.8 per cent reported in FY17/ FY18, respectively), as the company is pursuing diversification (setting up RAC plant at Tirupati and Voltas Beko plant at Sanand).

However, we believe the company has a strong channel-partner network, helping to place 60–65 per cent of seasonal sales, coupled with their focus on mid-market pricing and Tier 2/3 networks. We expect the company to outpace expectations in the RAC segment in the short term and the Voltas Beko products in the long term.

We maintain our ‘reduce’ rating on the stock owing to the valuation.

 

9.30 am

 

Asia stocks hit 18-month high in festive cheer

Asian shares jumped to an 18-month high on Friday while gold and oil prices stayed buoyant in a holiday-shortened week, as investor optimism was boosted by hopes a US-China trade deal would soon be signed.

Traders returned from their Christmas and Boxing Day break to digest comments from Beijing that it was in close contact with Washington about an initial trade agreement, shortly after US President Donald Trump talked up a signing ceremony for the recently struck Phase 1 trade deal.

MSCI's broadest index of Asia-Pacific shares outside Japan jumped 0.55 per cent to 555.25, a level not seen since mid-2018. It is up about 16% so far this year.

Japan's Nikkei was flat, but on track for a near 20 per cent rise this year, biggest annual increase since 2013.

Read more about the global markets here

9.18 am

Sensex jumps 100 points, Nifty starts at 12,164

The broader NSE Nifty 50 opened at 12,164.80, gaining 38.25 points.

Meanwhile, BSE sensex opened at  41,286.62, showing a 122.86 points jump. Allahabad Bank surged 8 per cent and Reliance Capital Ltd gained over 4 per cent.

 

9.10 am

 

Today's stock pick

Bharat Dynamics (₹304.8): Buy

 

Investors with a contrarian view can buy the stock of Bharat Dynamics at current levels. After recording a 52-week high at ₹365 in early November this year, the stock began to decline. It witnessed a sharp fall in early December as well. But, a key medium-term support in the band between ₹280 and ₹285 arrested the stock’s fall in mid-December. Thereafter it moved sideways in a narrow range. For more on this recommendation read here.

 

9.00 am

 

Day Trading Guide

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹1271 • HDFC Bank

S1

S2

R1

R2

COMMENT

1260

1245

1285

1298

Initiate fresh short positions with a stiff stop-loss if the stock reverses down from ₹1,285 levels

 

₹729 • Infosys

S1

S2

R1

R2

COMMENT

723

715

736

742

Consider initiating fresh long positions with a tight stop-loss only if the stock rebounds up from ₹723 levels

 

₹236 • ITC

S1

S2

R1

R2

COMMENT

234

231

239

242

Near-term stance is bearish for the stock of ITC. Sell on rallies while maintaining a stop-loss at ₹239 levels

 

₹128 • ONGC

S1

S2

R1

R2

COMMENT

125

122

130

133

Fresh long positions can be initiated with a stiff stop-loss only if the stock of ONGC moves beyond ₹130 levels

 

₹1515 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1500

1485

1530

1545

The stock of RIL is witnessing selling pressure at higher levels. Go short if it reverses down from ₹1,530 levels

 

₹329 • SBI

S1

S2

R1

R2

COMMENT

325

318

335

341

Fresh short positions can be initiated with a tight stop-loss if the stock of SBI falls below ₹325 levels

 

₹2201 • TCS

S1

S2

R1

R2

COMMENT

2180

2160

2220

2240

Initiate fresh short positions with a fixed stop-loss if the stock falls below ₹2,180 levels

 

12135 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

12085

12035

12190

12240

Consider initiating fresh long positions with a fixed stop-loss only if the contract advances above 12,190 levels

 

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Published on December 27, 2019