Market updates: Indices end in green; Sensex up 200 points, Nifty closed at 12,120

Closing bell:

The indices today ended on a positive note, after breaking the two-day negative strike.

The 30-pack BSE Sensex closed at 41,200.70, up by 233.84 points or 0.57 per cent. Bajaj Finance and Nestle India in the pack, whereas TCS and HDFC were the top losers.

The broader NSE Nifty 50 ended at 12,129.50, positing a jump of 73.70 or 0.61 per cent. Tata motors gained 7 per cent, Bajaj Finance gained 5 per cent at the close. Eicher Motor and TCS topped the losing list. Except Pharma, all the other indices ended in green lead by FMCG, auto and metal.

IDBI Bank to raise Rs 1,500 cr via bonds

IDBI Bank on Wednesday said it proposes to raise Rs 1,500 crore from bonds to fund growth.

“The bank has decided to issue Basel III Compliant Tier 2 Bonds for aggregate total issue size of Rs 1,500 crore, with a base size of Rs 500 crore and a green shoe option to retain oversubscription up to Rs 1,000 crore,” IDBI Bank said in a filing.

The bids for the above issuance would be invited on electronic bidding platform (EBP) of BSE Bond and bidding window shall remain open on January 31, it said.

Country set for record rabi cereal harvest: Report

Extremely good rainfall received during the monsoon period and subsequent months will help the country to harvest a record 110 million tonnes (mt) or more of wheat, according to projections by two different private agencies.

While the firms —private weather forecaster Skymet Weather Services and National Collateral Management Services Ltd (NCML) – projected that wheat output would be much higher than the 102.19 mt projected for 2018-19 in the 4th advance estimates, their assessments differed on two major rabi crops—Bengal gram and mustard. While Skymet said the output of both the commodities would higher than that in the last year, NCML’s projections were contrary to it.

Rabi crops account for nearly 50 per cent of India's total foodgrain production. Read more here

Cholamandalam Financial Holdings Q3 profit up 5% at ₹430 cr

Cholamandalam Financial Holdings Ltd, a Murugappa Group company, on Wednesday reported a 5 per cent jump in its consolidated net profit at ₹430.3 crore for the quarter ended December 31.

The company had reported a profit of ₹408.65 crore in the year-ago period.

Total income of the company rose to ₹3,395.34 crore, from ₹2,954.13 crore in the same period a year ago, Cholamandalam Financial Holdings said in a statement. - PTI

CG Power September quarter loss widens

CG Power and Industrial Solutions on Wednesday reported widening of its consolidated net loss to ₹1,595.21 crore in quarter ended in September 2019, from ₹101.83 crore loss year ago, mainly due to lower income.

Total income of the company fell to ₹1,548.50 crore in the second quarter of this fiscal from ₹2,115.27 crore year ago, according to a BSE filing.

The company’s consolidated net loss also widened to ₹1,668.81 in April-September this fiscal from ₹212.09 crore loss in same period year ago, it said.

The company had reported a consolidated net loss of ₹507.13 crore in 2018-19.

Total income of the company in the first half of this fiscal declined to ₹3,330.87 crore from ₹3,958.87 crore year ago.

The company had earlier informed the bourse about the delay in submission of the financial results of first and second quarter of this fiscal. - PTI

To read more click here

Credit: BSE

Is the budgetary thrust on agriculture lending helping farmers?

Credit flow into agriculture has been driven by policy thrust, particularly through lending targets, interest subvention scheme and priority sector lending stipulations. The government’s subsidy payout under the interest subvention scheme has gone up over nine times over the past decade. But, despite these initiatives, accessibility to credit remains weak for small and marginal farmers.

Also, banks’ bad loans in the agriculture sector have risen sharply in recent years, with the issue of diversion of agriculture loans for non-agriculture purposes and falling share of crop-related investment credit, indicating deeper issues that need immediate attention.

Read more here

Dr Reddy’s gets five USFDA observations on API plant

The US Food and Drug Administration (USFDA) has issued five observations on the Active Pharmaceutical Ingredients (APIs) plant of Dr Reddy’s Laboratories Ltd, located at Srikakulam, Andhra Pradesh. Read more here

Coal India posts double-digit growth in output in January

Coal India Ltd , the world’s largest miner, has registered an over 10 per cent growth in production to 54.17 million tonnes (MT) till January 27 compared with 48.94 MTs it reported in the same period last year. This is the first double-digit growth that the company has registered during the ongoing fiscal.

Production till January 27 was ahead by 5.23 MT in absolute terms on a like-to-like comparison basis, representing growth of 10.7 per cent, the first double-digit growth so far during the current fiscal, a release issued by the company said.

Read more

Tax breaks for investments in property can spur job creation, help economy: Federal Bank CEO

Shyam Srinivasan

 

Bank credit growth languishing at single-digit levels is a big cause for worry. Investments and consumption have taken sharp knocks, impacting the growth in the economy and in turn banks’ lending activity. What can the Budget do to revive the banking sector and the investment activity?

Shyam Srinivasan, MD & CEO, Federal Bank, believes that instead of putting more cash in individuals’ hands, the Centre will need to ensure that money flows into the economy, say, for buying property, making investments in real estate, long-term infrastructure financing, etc. This will help lubricate the system, in turn spurring construction and real estate activity, and offering the much-needed fillip to the economy and job creation. Read the excerpts here

Maruti Suzuki to display green sustainable mobility at Auto Expo 

Maruti Suzuki India (MSIL) on Wednesday said it will display a bouquet of new products and technologies at the upcoming Auto Expo - The Motor Show 2020. 

Making strides in CNG and Hybrid vehicles, the company will strengthen its resolve in the domain of green sustainable mobility. It will use the Auto Expo as a platform to showcase a new design language for the future utility vehicles, MSIL said in a syatement.

Read more

Ahead of the Union Budget, road builders’ shares rally

Investors are piling into shares of Indian road builders, betting that Saturday’s Union Budget will contain measures to spur investment in infrastructure.

A custom  Bloomberg  index of nine road builders is up 8.1 per cent this month, versus the 0.7 per cent drop in the main S&P BSE Sensex index. The gauge includes IRB Infrastructure Developers Ltd, Sadbhav Engineering Ltd and KNR Constructions Ltd, some of which struggled in 2019 as national elections caused the government to defer spending.

The rally is being led by belief that Finance Minister Nirmala Sitharaman will need to do more to revive economic growth from the lowest since 2008. She outlined $1.5 trillion in infrastructure investment last month, of which Union and State governments will contribute at least 75 per cent.

READ MORE

Indices overview:

The major indices -- NSE Nifty 50 and BSE Sensex have been constantly in the positive grid since morning.

The 30-pack BSE Sensex was trading at 41,300.41, posting a jump  of 333.55 points or 0.81 per cent. In this pack, ITC was leading with a jump of 2.86 per cent in its stock price. Next up were Tata Steel and Nestle India. In the red zone were Utlra tech Cement and Titan. About 1341 advanced, 862 declined, 141 remained unchanged. 

Here is how the 30-pack indices were trading:

Credit: BSE

The Nifty 50 was trading at 12,152.35, showing a jump of 96.55 points or 0.80 per cent. The top gainer in this indice was Tata motors with a jump of 4.74 per cent. Followed by Adani Port and Infratel. The losers were Eicher Motors (2.07 per cent) and TCS (0.86 per cent). All the sectoral indices were in the green, led by metal, auto, FMGC and bank.

Here is the overview of NSE Nifty 50 sectoral indices:

Credit: NSE

Nifty call: Buy on dips with stop-loss at 12,100

28/05/2019 MUMBAI: The new breand identity for Nifty Indices launch at the National Stock Exchange in Mumbai on May 28, 2019. Photo By. Paul Noronha

Nifty 50 January Futures (12,150)

After closing in the red for two consecutive days, both the Indian benchmarks i.e. the Nifty spot and the Sensex spot index has rallied in today’s session. Both the indices are up by around 0.7 per cent so far. The Nikkei index, one of the major Asian indices is up by 0.6 per cent. While the Hang Seng index has opened in the red it has been gaining intraday... READ MORE

The January futures contract of the Nifty index opened at 12,114 versus yesterday’s close of 12,068. It has been gaining since then. The momentum looks positive with several factors indicating potential upside. One can take bullish view for intraday. Traders are recommended to buy the contract on dips with stop-loss at 12,100.

Strategy: Buy on dips with stop-loss at 12,100

Supports: 12,130 and 12,100

Resistances: 12,200 and 12,230

How Tata Group entities came together to power up the EV ecosystem

Tata Power, Tata Motors and Tata Chemicals have come together to give a push to the electric vehicles segment.

“With the coming together of all Group companies, we see a new wave of opportunities,” said Guenter Butschek, CEO & MD, Tata Motors. The opportunity is a no-brainer with governments incentivising auto makers with subsidies and driving policies such as banning the sales of internal combustion engine (ICE)-powered two-wheelers and three-wheelers in highly polluted cities, scrapping old vehicles and enforcing stringent emission norms to give a fillip for EV adoption.

Read more about it here

Company announcement:

Hindustan Petroleum Corporation Ltd said it has issued NCDs aggregating to six billion rupees. - Reuters

Credits: NSE

The stock of HindPetro was at Rs.245.60, posting a jump of 3.25 points or per cent,

Mudra loans: Banks sanction ₹40,000 crore in last two months

Banks have stepped up disbursal of loans under Pradhan Mantri Mudra Yojana (PMMY) in the last two months by disbursing more than ₹40,000 crore.

Still, they may fall short of last year’s disbursal in FY20. Read more about it here

Company news:

Atul Auto has incorporated the wholly owned subsidiary -Atul greentech Pvt Ltd for the purpose of electric vehicles.

The stocks of Atul Auto on NSE were trading at Rs.263.00 a piece, posting an increase of 0.55 points or per cent.  - Reuters

Will the Budget offer some solace to farm widows?

“The governments here have been asleep for far too long. They should listen to us and solve our problems. If they can’t, they should just go,” thundered Vidya More, a 38-year-old farmer widow from Osmanabad district of Maharashtra.

Her frustration is understandable; her husband committed suicide about eight years ago when he couldn’t get enough from his two-acre land to take care of his indebtedness. Despite More running from pillar to post, the authorities refused to recognise her husband’s death as a farm suicide, making her ineligible for ex-gratia compensation of ₹1 lakh.

Today, she struggles hard to look after her family — consisting of two school-going children aged 13 and 8. Even though she has been farming the land that has been transferred to her name since her husband’s passing, she has not been getting the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) payout of ₹6,000 per year. “This is despite providing all the documents required,” More said, adding that governments — both at the Centre and the State — are quite insensitive to the problems of women farmers in general and farm widows in particular.

Read the complete story here

Reliance Industries plans to market ‘Plastic to Road’ initiative

The new-age environmental evil of plastic waste can be turned into a cost-effective, durable and sustainable application in road construction

Right in the middle of a sea of green, dotted with trees and horticulture crops cultivated by Reliance Industries Ltd, lay the shades of concrete grey, or better yet, concrete green.

Over 40 kilometres of roads in and around the RIL Nagothane Manufacturing Division have been resurfaced using plastic waste. This is a part of their sustainability and circularity initiative to manage and use plastic waste.

India generates 9.4 million tonnes of plastic waste annually. Out of this, 40 per cent remains uncollected and 43 per cent is used for packaging, most of which is single use, a study conducted by Un-Plastic Collective, a voluntary initiative to curb plastic pollution, revealed last year.

Read more

Gainers and losers:

Here are the top gainers and losers on the NSE Nifty 50 indice:

Credit: NSE

Here is the list of gainers on the BSE Sensex indice:

Credit: BSE

BSE Sensex Losers :

Credit: BSE

Rupee Open:

The Indian rupee appreciated by 10 paise to 71.21 against the US dollar in early trade on Wednesday tracking gains in domestic equity market.

Forex traders said rupee is trading in a narrow range amid amid fast-spreading coronavirus outbreak in China stoking fears about more trouble for the global economy.

At the interbank foreign exchange the rupee opened at 71.23, than gained further ground and touched a high of 71.21 against the US dollar, registering a rise of 10 paise over its previous close. - PTI

Broker's call -

Stock: Torrent Pharmaceuticals (Buy)

Broker: Anand Rathi

CMP: ₹1,910

Target: ₹2,265

To read about the takeaways, valuation and risks of this stock click here

Daily Rupee call:

Yesterday, the rupee (INR) gained as it closed at 71.33 versus its previous close of 71.44 against the dollar (USD). Thus, it has gone back above the important level of 71.4. Notably, the one-year forward spread continues to stay around 300 points.

Further appreciation will face a hurdle at 71.2. A break of that level can take the exchange rate of USDINR to 71. On the other hand, if the local currency depreciates, 71.4 will act as a support. The 50 per cent Fibonacci retracement level coincides at that level. If it slips below 71.4, it can decline to 71.6.  

READ MORE

Trade strategy:

Though the rupee gained yesterday, the recent trend is bearish. Also, the dollar index is likely to breakout of a key resistance, which will weigh on the Indian currency. Hence, one can take bearish view until the rupee trades below 71.2. Traders can sell rupee for intraday with stop-loss at 71.

Supports: 71.4 and 71.6

Resistances: 71.24 and 71

BSE Sensex jumps 230 points

The 30-pack BSE Sensex is hovering around 41,201.06, showing a jump of 234.20 points or 0.57 per cent.

Here is how the the 30 stocks of the indice is doing:

100

Asian Markets

Asian shares erased earlier gains on Wednesday, swinging into negative territory as a spike in new Chinese virus cases sent Hong Kong stocks tumbling and fuelled fears about the economic impact of the outbreak.

MSCI’s broadest index of Asia-Pacific shares outside Japan skidded 0.52 per cent. Hong Kong shares fell 2.8 per cent on their first session after a two-and-a-half trading day break for Lunar New Year, led by declines in financial services, real estate, and consumer goods companies.

However, Australian shares rose 0.57 per cent, while Japan's Nikkei stock index advanced 0.4 per cent, partly because investors in these markets have already had a chance to react to the virus outbreak, which has claimed more than 100 lives. Read more

Opening Bell:

The markets opened on a positive note today.

BSE Sensex started with a jump of 211.14 points at 41,178.

Whereas the NSE Nifty 50 opened at 12,116.15, showing a jump of 60.35 points.

Day Trading Guide for January 29, 2020

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

₹1222 • HDFC Bank

₹777 • Infosys

₹230 • ITC

₹116 • ONGC

₹1471 • Reliance Ind.

₹314 • SBI

₹2184 • TCS

12068 • Nifty 50 Futures

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

KRBL (₹297): Buy

Investors with a short-term horizon can buy the stock of KRBL at current levels. The stock jumped 6.3 per cent accompanied by above average volume and surpassed a key immediate resistance at around ₹290 on Tuesday. This rally has helped the stock to resume its medium-term uptrend that has been in place since it took support at ₹187 in mid-November last year.

Both the daily and the weekly relative strength indices have entered the bullish zone from the neutral region backing the bullish momentum. Likewise, the daily as well as the weekly price rate of change indicators hover in the positive terrain implying buying interest.

With the resumption of uptrend, the short-term outlook has turned bullish for the stock. It has potential to trend upwards and reach the price targets of ₹310 and ₹315 in the ensuing trading sessions. Traders with a short-term view can buy the stock with a stop-loss at ₹290.

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