Sensex reclaims 36,000 mark; Nifty ends above 10,850

Closing bell

Continuing its rising spree for the fourth session, benchmark BSE Sensex reclaimed the 36,000 mark by jumping over 200 points tracking positive cues from global markets on rising hopes that the US and China would strike a deal to end their trade tiff.

Read the global markets report here

Moreover, optimistic buying by investors ahead of Q3 earnings season supported the rally.

The BSE Sensex after a gap-up opening at 36,181.37, advanced further to the day’s high of 36,250.54, before ending at 36,212.91, showing a gain of 231.98 points, or 0.64 per cent. The gauge had gained by 467 points in the previous three sessions.

The NSE Nifty also gained 53 points, or 0.49 per cent, to settle 10,855.15 after shuttling between 10,870.40 and 10,749.40.

Top performers that led the gains on bourses were Axis Bank, ITC, Tata Motors, Bharti Airtel, HDFC, IndusInd Bank, HUL, Infosys, HDFC Bank, Maruti and ICICI Bank, rising up to 2.94 per cent.

On the other hand, Yes Bank, Tata Steel Hero MotoCorp, ONGC, Bajaj Finance, NPTC, HCL Tech and TCS were the top losers, falling up to 3.07 per cent.

Investor sentiment also got a boost after the World Bank projected India’s GDP growth at 7.3 per cent in the fiscal year 2018-19, and 7.5 per cent in the following two years, attributing it to an upswing in consumption and investment, traders said. The bank said India will continue to be the fastest growing major economy in the world.

Market sentiment was buoyant largely in sync with a positive trend at other Asian bourses, supported by rising hopes that the US and China would reach a truce, traders said. US President Donald Trump, on Tuesday, had said that talks with Beijing on a trade deal were going on “very well“.

However, selling towards the fag end, as investors took some money off the table at record levels, cut down the session’s gains.

Besides, optimism ahead of Q3 earnings of some bluechip companies such TCS and Infosys, too, bolstered trading sentiments, accelerating buying by retail investors.

Meanwhile, domestic institutional investors (DIIs) bought shares to the tune of Rs 698.17 crore, while foreign portfolio investors (FPIs) offloaded shares worth a net of Rs 553.78 crore on Tuesday, provisional data showed. (PTI)

IndusInd Bank Q3 net profit rises by 5%

 

Private sector lender IndusInd Bank on Wednesday posted a marginal 5.2 per cent increase in net profit to Rs 985.03 crore for the third quarter. The total income of the lender also increased to Rs 7,232.32 crore during the October-December 2018. Read more on the IndusInd bank Q3 result here

The stock of the private sector bank was trading at Rs 1,600.80, higher by 1.47 per cent

World stocks near 4-week high

 

World stocks extend their gains to hit a near-four week high and oil prices rose on Wednesday on optimism that the United States and China may be inching towards a trade deal, soothing fears an all-out trade war could hit a slowing global economy. Asian bourses saw a strong finish with Japan's Nikkei and China's blue-chip CSI 300 closing up 1 per cent. More on the world stock markets update here

NMDC to decide on eligible shareholders for buyback

 

State-run iron ore producer NMDC will decide on January 18 the names of shareholders who would be eligible to participate in the company’s Rs 1,000-crore share buyback.The timeline for the launch of the offer would be decided by NMDC’s board. Read more on NMDC's buyback plan here

Trade deal optimism lifts European shares

 

European shares rose further on Wednesday with the export-oriented autos and tech sectors leading the way on growing optimism over a possible trade deal between the US and China. The pan-European STOXX 600 benchmark hovered around its highest level in around three weeks, up 0.7 per cent. Read the full European market report here

India to become third-largest consumer market

 

India is poised to become the third-largest consumer market behind only the US and China; and consumer spending in India is expected to grow from $ 1.5 trillion at present to nearly $ 6 trillion by 2030, a World Economic Forum report said. With an annual GDP growth rate of 7.5 per cent, India is currently the world’s sixth-largest economy. Click here to read on the WEF report on India's consumer market and economic growth

Sensex, Nifty trading higher

The 30-share BSE index is trading higher by 226.24 points or 0.63 per cent at 36,207.17. The 50-share NSE index Nifty is trading at 10,854.50 higher by 52.35 points or 0.48 per cent.

The stocks of HDFC and ITC were supporting the BSE index, Tata Steel and Yes Bank scrips were trading in the negative zone.

Axis Bank is the top gainer in the NSE index Nifty.

Gold up Rs 110

 

Gold rose for the third straight session on Wednesday, gaining Rs 110 to Rs 32,800 per 10 grams on increased buying by jewellers to meet marriage season demand. Silver prices also spurted by Rs 300 to Rs 40,100 a kg on fresh buying by industrial units and coin makers. More on the domestic bullion market here

More than 20% of South India’s population may turn grey by 2050

 

In coming decades, a huge migration can be expected from ‘Young North-India’ to ‘Elder South-India’, resulting in imminent pressure on southern States in terms of infrastructure (both social and physical), the report said. Click here to read more on SBI report on South India's population

Budget session

 

The budget session of Parliament is likely to be held from January 31 to February 13, and an interim budget is expected to be presented on February 1, according to the government sources. Read more

Major gainers and losers

BSE

NSE

 

Amazon emerges most valuable US firm

 

On Monday, Amazon’s shares rose 3 per cent to close at USD 1,629.51 and lifted the e-commerce leader’s market value to USD 797 billion. Amazon has eclipsed Microsoft as the most valuable publicly traded company in the US as a see-sawing stock market continues to reshuffle corporate America’s pecking order. Read more on the market value of Amazon and US stock market

Indian refiners pay for Iranian oil in rupees

 

India has begun paying Iran for oil in rupees, a senior bank official said on Tuesday, the first such payments since the United States imposed new sanctions against Tehran in November. India, the world's third biggest oil importer, wants to continue buying oil from Iran as it offers free shipping and an extended credit period. Read more on the India's import of Iranian oil here

Broker's call

Anand Rathi

JB Chemicals (Buy)

CMP: ₹304.9

Target: ₹416

Ranked 35th in the Indian pharmaceutical industry, the company’s four brands brings 80 per cent sales to its domestic business. Its brands (Rantac, Cilacar, Metrogyl) each have ₹100 crore-plus revenues. The company has 6-7 active products in the US, with 11 approved ANDAs filings and five pending approval. Read the complete Broker's call of JB Chemicals here

MCX-Zinc bounces from a key support

 

It was a volatile week for the Zinc futures contract on the Multi Commodity Exchange of India (MCX). The Zinc (three-month forward) contract on LME fell in the past week as expected to test the key support level of $2,400 per tonne. Click here to read our Commodity analysis on Zinc

Sensex surges 240 points

The 30-share BSE index Sensex surged 240.62 points or 0.67 per cent to 36,221.55 mainly supported by the stocks of Infosys and Axis Bank. The metal index was the major loser, lower by 1.10 per cent at 13,363.57.

The broader NSE index Nifty was trading at 10,863.35, higher by 61.20 points or 0.57 per cent. Bharti Airtel, Axis Bank, ITC, Tata Motors and Wipro were the main gainers

Tata Steel hits 52-week low

 

The  stocks of Tata Steel  on Wednesday hit a 52-week low at 477.30 ahead of the Q3 earnings. At about 12.50 pm, the scrips were trading lower by 2.43 per cent at Rs 479.40. Lower production in Europe will impact its financial results, ahead of a planned merger with Germany's Thyssenkrupp, the company said. Click here to read more on the Q3 warning of Tata Steel

Tech stocks propel Wall Street to three-week peak

 

The S&P 500 jumped to a three-week high on Tuesday, led by Apple, Amazon, Facebook and industrial shares on bets that the United States and China would strike a deal to end their trade war. The three-day rally kicked off on Friday following robust US jobs data and dovish comments on interest rates by Federal Reserve chief Jerome Powell has lifted the S&P 500 by over 9 per cent from 20-month lows touched around Christmas. Read the US stock market update here

“Global growth is slowing and risks are rising"

 

The World Bank on Tuesday projected moderation of global growth from three per cent last year to 2.9 per cent this year, as one of its top officials described the current situation of the world economy as darkening of the skies. Global economic growth is projected to soften from a downwardly revised 3 per cent in 2018 to 2.9 per cent in 2019 amid rising downside risks to the outlook. Click here to read the World Bank projection on the global economic growth

Nifty Call

 

The Nifty January month futures contract began the session on a positive note with a gap-up open at 10,892 levels. But, testing a key resistance at 10,900 the contract started to decline due to selling interest. Read the Nifty Call strategy here

IT, bank stocks support indices

The 30-share BSE index Sensex was trading higher by 144.29 points or 0.40 per cent at 36,125.22 against the previous close of 35,980.93. While the stocks of HDFC, Reliance, Axis Bank and HDFC Bank were supporting the index, scrips of Tata Steel and TCS was in the negative zone.

Among the sectoral indices, Auto and bank stock were in the positive zone while the metal and oil and gas indices were trading in red.

The broader NSE index Nifty was trading at 10,829.10, higher by 26.95 points or 0.25 per cent. The stock of Axis Bank was the major gainer followed by Wipro, IBUL Housing Finance, Eicher Motors and Zee Entertainment Ltd.

Axis Bank hits near 4-month high

 

Axis Bank Ltd's shares gain as much as 2.59 per cent to Rs 667.75, their highest since September 10, 2018. The stock breaks above a resistance at Rs 656.1, the 61.8 per cent Fibonacci projection level. More on the stock performance of the Axis Bank here

Gold steady, Palladium hits record high

 

Gold prices held steady on Wednesday as a potential close to a months-long Sino-US trade war lifted risk sentiment, countering expectations that the Fed would pause interest rate increases for this year. Meanwhile, palladium hit a record high at $1,340.50 an ounce during the session. Read more on the bullion market here

Tata Motors hits six week high

 

Tata Motors Ltd's shares gain as much as 1.47 per cent to Rs 182.6, highest since November 27, 2018. More on the stock movement of Tata Motors here

Cold storages face the heat as potato prices crash

 

With the price of the potato crashing, a majority of the farmers and traders have been unable to repay the loans they had taken from cold store owners against warehouse receipts. Unable to repay their loans, cold storages are shutting down operations. Potato, which was fetching ₹900-1,000 a quintal at the time of loading in March 2018, is currently not even getting ₹100-125 a quintal. Click here to read more on the potato prices crash and the situation of the cold storages

Sensex, Nifty up

Shares traded higher tracking gains in broader Asia, as risk appetite improved on hopes of a positive outcome of the US-China trade talks, while domestic investors remained optimistic about a strong results season starting this week.

Stocks across the globe have witnessed a rally this week after jitters about a global economic slowdown were pacified by a rating cut by China, strong US jobs data, and a dovish tone by the Federal Reserve.

Read the global markets update here

“Markets are tracking global cues, there are expectations of better Q3 numbers and risk appetite has generally been better,” said Anand James, chief market strategist at Geojit Financial Services. “The global rally is helping sentiment, there is strength across sectors, we have not made big moves, but there is some sense of positivity.”

The 30-share BSE Index Sensex was trading higher by 170.19 points r 0.47 per cent at 36,151.12 and the broader NSE index Nifty was up by 33.80 points or 0.31 per cent at 10,835.95.

Gains on the NSE index were driven by IT stocks, with shares of Infosys Ltd rising as much as 2.95 per cent, their highest since December 17 after it said it will consider a share buyback and a special dividend on Friday. Infosys is set to report its December quarter results on January 11.

Shares of IndusInd Bank Ltd were up as much as 1.35 per cent ahead of quarterly results announcement. Yes Bank Ltd shares were trading down as much as 1.2 per cent. The lender is scheduled to hold a board meeting later in the day and is expected to make final recommendations to the central bank for naming a new chief executive officer. (Reuters)

Oil prices surge

 

Oil prices rose on Wednesday, extending gains from the previous session on hopes that Washington and Beijing can resolve a trade dispute that has triggered a global economic slowdown. International Brent crude futures were up 42 cents, or 0.7 percent, at $59.14 per barrel. More on the commodities market report here

YES Bank to appoint MD&CEO

 

The board of private sector lender YES Bank will meet today to decide on a potential successor. The board is likely to recommend the name of the proposed MD and CEO to the Reserve Bank of India (RBI) for approval. The bank’s internal candidate, Executive Director Rajat Monga, is seen as the top contender for the post. Read more on the YES Bank Board meeting and appointment of MD & CEO here

The stocks of the YES Bank was trading at Rs 190.95, lower by 0.70 per cent at the BSE index Sensex.

Pfizer exits two more plants in India

 

The year has started on a disheartening note for Pfizer’s employees in Aurangabad (Maharashtra) and Irungattukottai (Tamil Nadu), with the pharma MNC confirming that it will “exit” plants at both sites at the earliest in 2019. The two plants had come into the Pfizer fold through its international acquisition of Hospira. Read more on Pfizer's exit plan here

The stocks of Pfizer was trading at Rs 2,738.50, lower by 0.24 per cent.

Print media stocks surge

 

Shares of Indian print media companies surge with Nifty Media index rising as much as one per cent after the government hiked by 25 per cent the rates at which the Bureau of Outreach and Communication releases its advertisements to the print media. Read more on the stock performance of the print media companies and government decision on ad rates here

Indices trade in green

The 30-share BSE index Sensex was trading higher by 205.99 points or 0.57 per cent at 36,186.92 against the previous close of 35,980.93. The stocks of Infoys and Reliance were lending support to the index, while State Bank of India and Tata Steel stocks were in the negative zone.

Among the sectoral indices, Information Technology was the major gainer, trading higher by 1.26 per cent, followed by TecK stocks. The metal index was the major loser.

The 50-share NSE index Nifty was also trading in green at 10,852.10 higher by 49.95 points or 0.46 per cent. Infosys was the major gainer, followed by Axis Bank, Tech Mahindra, Hindustanlever and UPL.

The stocks of Hindustan Petroleum was leading the negative zone followed by Tata Steel, BPCL, GAIL and Infratel.

Dollar edges lower

 

The dollar eased against some of its peers on Wednesday, as hopes of progress in the Sino-US trade dispute boosted commodity-linked and riskier currencies. The Aussie rose 0.2 per cent to $0.7152, after touching a three-week high of $0.7172 in early trading on optimism around the Sino-US talks. More on the forex market here

Broker's call

Motilal Oswal

Titan (Buy)

CMP: ₹946.05

Target: ₹1,125

 

Titan Company Ltd is engaged in offering watches, jewellery and others.

Jewellery segment capitalised well on seasonal strength to report robust growth in 3QFY19. Management cited that the segment expanded its market share on account of robust same-store sales growth. Watches saw another strong quarter, which was also supported by its brand-building activities across channels.

Read our Broker's call on the stocks of Titan here

India's GDP expected to grow

 

India’s GDP is expected to grow at 7.3 per cent in the fiscal year 2018-19, and 7.5 per cent in the following two years, the World Bank has forecast, attributing it to an upswing in consumption and investment. India will continue to be the fastest growing major economy in the world. Click here to read more on the World Bank report on India's GDP growth

Reclaim 36,000 mark

The 30-share index rose 230.90 points or 0.64 per cent, to 36,211. The gauge gained 467 points in previous three sessions. Similarly, the 50-share NSE Nifty is trading 56.50 higher or 0.52 per cent to 10,858.65.

The BSE Sensex jumped over 200 points to reclaim the 36,000 mark in opening session Wednesday, extending its winning run for a fourth session on buying by domestic investors, tracking a firming trend overseas amid optimism ahead of quarterly results of bluechips.

Sectoral indices, led by IT, teck, realty, auto, capital goods, bankex and power, were trading higher by up to 1.38 per cent.

Market sentiments was upbeat largely in tandem with a positive trend at other Asian bourses, supported by rising hopes that the US and China would strike a deal to end their trade war, traders said.

Major gainers in the Sensex kitty were Infosys, Axis Bank, Sun Pharma, Maruti Suzuki, TCS, HDFC, Bharti Airtel, NTPC, RIL, PowerGrid, HDFC Bank, HUL, L&T, Kotak Bank, ITC, Coal India, M&M, ONGC and ICICI Bank, rising up to 1.75 per cent.

In contrast, Yes Bank, Tata Steel, IndusInd Bank, Hero MotoCorp, SBI, HCL Tech and Bajaj Auto fell up to 0.52 per cent.

Besides, fresh buying by domestic institutional investors (DIIs) and retail investors ahead of Q3 earnings by bluechip companies lifted the key indices.

Meanwhile, domestic institutional investors (DIIs) bought shares to the tune of Rs 698.17 crore, while foreign portfolio investors (FPIs) offloaded shares worth a net Rs 553.78 crore on Tuesday, provisional data showed.

Among other Asian markets, Hong Kong’s Hang Seng gained 2.46 per cent, while Japan’s Nikkei surged 1.04 per cent. Korea Kospi was up 1.35 per cent, Taiwan’s index gained 0.84 per cent, and Shanghai Composite Index was also marginally up in late morning session.

On Wall Street, the US Dow Jones Industrial Average closed 1.09 per cent higher Tuesday.

Rupee rebounds in early trade

 

The rupee recovered 7 paise to 70.14 against the US dollar in early trade on Wednesday on fresh selling of the American currency by exporters and banks amid early gains in domestic equities. Click here to read on the rupee report here

Top gainers and losers

BSE

NSE

 

Asian shares hit 3-1/2-week high

 

Asian shares climbed to a 3-1/2-week high on Wednesday, supported by growing optimism that the United States and China can strike a trade deal to avoid an all-out confrontation that would severely disrupt the global economy. Read the Asian markets report here

What to watch

The board of Tata Steel BSL , formerly Bhushan Steel, will meet on Wednesday to consider a fund-raising proposal. The company may consider various options such as preferential issue through one or more methods including through qualified institutional placement, private placement and rights issue.

Shares of Gujarat Fluorochemicals may remain in action, as the Finance Ministry has imposed a definitive anti-dumping duty on 'methylene chloride', a chemical used in the manufacture of pharmaceuticals, agro and fragrance chemicals, from the United States and the European Union.

Opening bell

The 30-share BSE index Sensex surged 204.85 points or 0.57 per cent to 36,185.78 in the opening trade against the previous close of 35,980.93. The 50-share NSE index Nifty opened higher by 57.75 points to 10,859.90 against the previous close of 10,802.15

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:

₹2102 • HDFC Bank

 

₹669 • Infosys

 

₹284 • ITC

 

₹147 • ONGC

 

₹1103 • Reliance Ind.

 

₹305 • SBI

 

₹1893 • TCS

 

10844 • Nifty 50 Futures

 

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

Today's pick

 

We recommend a buy in the stock of Indian Bank at the current levels of Rs 257.9. The short-term outlook is bullish for the stock and it can continue to trend upwards moving out of the sideways range. Targets are ₹269 and ₹274. Read our stock recommendation and the stock movement of Indian Bank here