Sensex ends 142 points higher; pharma, metal stocks rally

Nifty gained 54 points to end at 10,789.85

4.05 pm

Closing bell

Extending gains for the second session, the BSE Sensex rose 142 points led by pharma, metal, auto and banking stocks amid buying by foreign and domestic institutional investors.

The 30-share Sensex settled 142.09 points, or 0.40 per cent higher at 35,898.35. The broader NSE Nifty gained 54.40 points, or 0.51 per cent, to 10,789.85.

Tata Motors was the biggest gainer in the Sensex pack, rallying 2.94 per cent. It was followed by Vedanta, Bajaj Finance, Sun Pharma, ONGC, ICICI Bank, Bajaj Auto, Tata Steel, RIL, HDFC duo, L&T and SBI, rising up to 2.78 per cent. On the other hand, Yes Bank, Coal India, Infosys, IndusInd Bank, Kotak Bank, Axis Bank, ITC and TCS slipped up to 1.33 per cent.

Sectorally, the BSE metal index, consumer durables, healthcare, finance and bankex rose up to 1.14 per cent; while IT and teck indices ended with losses. Broader indices outperformed the benchmark. The BSE Midcap index climbed 0.88 per cent while the small-cap gauge rose 1.07 per cent.

According to traders, state-owned banks rose after the finance ministry on Wednesday announced infusion of Rs 48,239 crore in 12 public sector banks (PSBs) in this fiscal to help them maintain regulatory capital requirements and finance growth plans.

Foreign institutional investors (FIIs), who had been heavy sellers over the past few sessions, net bought equities worth Rs 713.47 crore Wednesday, while domestic institutional investors bought equities worth Rs 113.27 crore, provisional data showed.

Meanwhile, the rupee depreciated marginally to 71.14 against the US dollar intra-day.

3.50 pm

European markets

A shares trader checks his trading systems at the start of the trading session the day after the Brexit deal vote of the British parliament at the stock exchange in Frankfurt, Germany.   -  Reuters

 

European shares dipped, weighed down by a number of poorly received earnings updates and after data showed that euro zone factory output unexpectedly fell last month. The STOXX 600 however remained just below its highest level in more than 4 months on optimism over progress in China-US trade talks. Read more on the European markets report here

3.35 pm

Reliance Capital invites Nippon Life to acquire stakes

Anil Ambani-led Reliance Capital (RCap) said it has invited Nippon Life Insurance to acquire up to 42.88 per cent, which is its entire stake, in Reliance Nippon Life Asset Management Ltd (RNAM). Japan’s Nippon Life Insurance Co. Ltd. already holds 42.88 per cent stake in RNAM.

RCap invites Nippon Life to acquire its stake in asset management JV

Deal expected is expected to fetch ₹8,000 cr

Read More  

3.20 pm

Opinion | To create jobs, focus on the small sector

Small units need support   -  REUTERS

 

The Indian economy is the fastest growing among all major economies in the world. Plus inflation is low. But there is a singular lack of good cheer. Last year the unemployment rate touched a four-decade high. So how can the programme address this crisis of joblessness? Read Subir Roy's opinion on economic growth and unemployment

3.05 pm

RCom seeks lenders' approval

TDSAT had exempted RCom from One-Time Spectrum Charge

 

Beleaguered telecom operator Reliance Communications (RCom) has sought “urgent” approval from its lenders to release about Rs 260 crore lying with it to Ericsson.

On Wednesday, the Supreme Court held RCom Chairman Anil Ambani and two directors of the group, guilty of contempt of court and asked them to pay Rs 453 crore to Swedish telecom equipment major Ericsson within four weeks. The stocks of Reliance Communication was trading higher by 8.10 per cent at Rs 6.27

SC to Anil Ambani, two RCom directors: Pay Ericsson ₹453 cr or face jail

The Supreme Court on Wednesday held Reliance Communication (RCom) Chairman Anil Ambani and two directors of the group guilty of contempt of court and ...

Read More  

2.50 pm

Markets udpate

The 30-share BSE index Sensex was trading at 35,900.05, higher by 143.79 points or 0.40 per cent. The metal and basic materials stocks are trading in positive zone, higher by over 1.10 per cent.

The broader index Nifty was trading higher by 44.85 points or 0.42 per cent at 10,799.40.

2.35 pm

Top gainers and losers

BSE

 

NSE

 

2.20 pm

Weak bond auctions flash warning on India record debt sales

 

India is struggling to sell its bonds at recent auctions, and that’s even before Prime Minister Narendra Modi embarks upon a record borrowing programme. Concerns about an over-supply of longer maturity bonds have increased after the government on February 1 said it plans to borrow almost $100 billion for the year starting April 1. Read more on India's debt and bond markets here

2.05 pm

Broker's call

Equirus Securities

GMDC (Long)

CMP: ₹73.2

Target: ₹139

 

GMDC paid about ₹30 crore to a Bhavnagar mining contractor as compensation for higher waste production in earlier years. Despite a favourable demand environment amid higher coal prices, GMDC has not been able to capitalise on the same due to internal production-related issues. Read our Broker's call on GMDC here

1.50 pm

Markets update

The 30-share BSE index Sensex is trading higher at 35,930.72, up by 174.46 points or 0.49 per cent. The scrips of Reliance, ICICI Bank, HDFC, TCS and Hindustan Unilever were lending support to the index.

The stocks of Infosys, ITC, Maruti, Bharti Airtel, and YES Bank were trading in red.

Among the sectoral indices, telecom stocks were the major loser while the positive zone was led by basic materials and metals stocks.

The broader 50-share index Nifty was trading higher by 49.85 points or 0.46 per cent at 10,785.30.

1.35 pm

$5 trillion economy

Prime Minister Narendra Modi speaks during a business symposium in Seoul, South Korea.   -  Reuters

 

Prime Minister Narendra Modi on Thursday said fundamentals of the Indian economy are sound and it is on the way to becoming a USD 5 trillion economy soon. India, he said, has jumped to 77th spot on the World Bank’s ease of doing business ranking on the back of reforms and is determined to break into the top 50 next year. Read more

1.20 pm

Nifty Call

 

The Nifty 50 futures contract is retaining its momentum after surging over a per cent on Wednesday. The index futures made an intraday low of 10,736.6 and has reversed sharply higher from there. The near-term view remains positive. Click here to read more on our Nifty Call for February Futures

1.10 pm

Tech Mahindra announces buyback

 

IT firm Tech Mahindra on Thursday announced a Rs 1,956-crore buyback of its shares at Rs 950 apiece, a 14.59 per cent premium over the current trading price. The share buyback proposal has been approved by the company’s board. Read more on the share buyback offer by Tech Mahindra here

12.55 pm

Top gainers and losers

BSE

 

NSE

 

12.45 pm

Shriram Transport Finance raises $400 mn

Samunnati has so far disbursed over Rs 1,600 crore worth of credit.

 

Shriram Transport Finance Company Ltd (STFC), a leading asset financing company, has raised $400 million through a three-year bond from the international bond markets. Read more here

12.30 pm

Markets updates

The 30-share BSE index Sensex was trading higher by 88.66 points or 0.25 per cent at  35,844.92. The scrips of Reliance Industries, ICICI Bank, TCS, Hindustan Unilever and HDFC were lending support to the index. The negative zone were led by the stocks of Infosys, Maruti, ITC, Axis Bank and Bharti Airtel.

Among the sectoral indices, the telecom stocks were the major loser, trading lower by 1.16 per cent.

The 50-share NSE index Nifty was trading higher by 27.60 points or 0.26 per cent at 10,763.05 points.

The stocks of IBUL Housing Finance, Vedanta, Tech Mahindra, ICICI Bank and Grasim were lending the support while Infratel, Maruti, Bharti Airtel, YES Bank and Infosys were in the red.

12.15 pm

Moody's changes YES Bank outlook

 

Moody’s Investor Service affirmed YES Bank’s ratings and changed the outlook to ‘stable’ from ‘negative’ after the recent developments at the private sector lender, including the appointment of a new Managing Director and CEO and nil divergences report from the RBI. Read Moody's outlook on YES Bank here

The stocks of YES Bank was trading at Rs 215.30, lower by 1.19 per cent at the BSE index Sensex.

12.05 pm

Bullion market

Gold may retrace into $1,321-$1,331 range.   -  Reuters

 

Gold was trading below the previous session's 10-month peak on Thursday as the dollar inched up after minutes from the last US Federal Reserve meeting rekindled expectations of another rate hike this year. Reflecting investor appetite for bullion, holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.26 per cent to 794.50 tonnes. Read the bullion market report here

11.55 am

US stocks

MSCI ex-Japan eases, E-Minis for US stocks a tad weaker. File Photo   -  Reuters

 

US stocks ended higher on Wednesday after minutes from the Federal Reserve's last meeting reaffirmed for investors that the US central bank would be “patient” with respect to further interest rate hikes. A dovish Fed and progress in US-China trade negotiations have helped the S&P 500 rise about 18 per cent from its lows in December. More on the US stock markets here

11.40 am

Markets update

The indices were steady, bucking a broader Asian rally, as a drop in IT heavyweights such as Infosys Ltd countered gains from financial stocks such as ICICI Bank Ltd.

Asian shares marked a 4-1/2-month high after the US Federal Reserve signalled it would be patient on further interest rate increases and as trade talks between China and the United states seemed to progress.

The 30-share BSE index Sensex was trading at 35,902.13, higher by 145.87 points or 0.41 per cent, while the broader index Nifty was trading higher by 31.90 points or 0.30 per cent at 10,767.35

The markets were expected to continue the positive momentum from last session, but the strength is missing, said Siddhartha Khemka, head of retail research at Motilal Oswal Securities. There is a lack of positive triggers and market participation is low, Khemka added.

Shares in Infosys fell as much as 1.8 per cent and were the top drag on the NSE index. Auto stocks also took a beating, with Maruti Suzuki India Ltd losing nearly 2 per cent. Mahindra and Mahindra Ltd shed 1.4 per cent.

However, shares of state-run lenders rejoiced after the government said it will inject Rs 48,239 cr ($6.79 billion) into 12 lenders as part of its recapitalisation programme.

The infusion is aimed at ensuring minimum regulatory capital for banks under the central bank's prompt corrective action (PCA) framework and to make sure the weak banks don't breach PCA triggers.

Indian Overseas Bank and UCO Bank rose as much as 13 per cent and 14.2 per cent, respectively. Shares of Corporation Bank Ltd surged nearly 20 percent, while those of United Bank of India Ltd jumped 14.5 per cent. Both posted their biggest daily percentage gain since October 2017. (Reuters)

11.25 am

Top gainers and losers

BSE

 

NSE

 

11.10 am

Commodities market

 

Oil prices hovered close to 2019 highs on Thursday, bolstered by OPEC-led supply cuts and US sanctions on Venezuela and Iran, but were prevented from rising further by slowing growth in the global economy. Analysts said a global economic slowdown was preventing prices from surging beyond the 2019 highs seen this week. Read more on the commodities market report here

10.55 am

Markets update

The 30-share BSE index Sensex was trading marginally higher by 27.17 points or 0.08 per cent at 35,783.43. The top gainers were Vedanta Ltd, ICICI Bank, ONGC, Reliance and Tata Steel while the major losers were Bharti Airtel, Maruti, IndusInd Bank, YES Bank and Infosys.

The broader 50-share NSE index Nifty was also marginally higher at 10,743.05, up by 7.60 points or 0.07 per cent.

10.45 am

Broker's call

Reliance Securities

Ambuja Cements (Buy)

CMP: ₹206.85

Target: ₹242

Aerial view of the Ambuja cement plant, Kolkata.(file photo)

 

Ambuja Cements has reported a weak performance in 4QCY18, mainly marred by sharp increase in power and fuel expenditures and subdued realisation.Sales volume grew by 4.4 per cent y-o-y to 6.13 million tonne in 4QCY18. Operating cost/tonne stood at ₹4,012 (+8.4 per cent y-o-y and -2.4 per cent q-o-q) mainly impacted by about 17 per cent y-o-y increase in input cost/tonne to ₹1,502. Read our Broker's call on Ambuja Cement here

10.35 am

Currency market

At the forex market, the domestic unit opened slightly higher at 71.06. File Photo   -  The Hindu

 

The rupee darted up 9 paise to 71.02 against the US dollar in early trade on Thursday amid a reversal in foreign fund outflows even as oil prices hardened. Snapping a four-session downturn, the rupee had appreciated by 23 paise to end at 71.11 against the US dollar Wednesday. More on the currency market report here

10.25 am

Bank stocks jump

Shares of public sector banks jumped on Thursday, a day after the government said it will inject Rs 48,239 cr ($6.79 billion) into some lenders as part of its recapitalisation programme. The Nifty PSU bank index rose as much as 1.7 per cent, but pared gains and was last up 0.9 per cent.

Govt approves ₹48,239-cr recap bonds in 12 PSBs

Allahabad Bank and Corporation Bank set to come out of RBI’s PCA framework

Read More  

10.15 am

Asian markets

MSCI Asia-Pacific index up 0.15 per cent. File Photo   -  Reuters

 

Asian shares pulled ahead to fresh 4-1/2-month highs after the US Federal Reserve affirmed it would be “patient” on further interest rate rises and as Sino-US trade talks hinted of progress towards a deal in their tariff war. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.4 per cent to a peak last seen in early October. Read the Asian market report here

10.00 am

Markets update

The 30-share BSE index Sensex slips 7.70 points or 0.02 per cent in early trade and is rallying at 35,748.56. Top gainers in the Sensex pack on Thursday include ICICI Bank, Vedanta, ONGC, SBI, HUL, Bajaj Finance, Tata Motors, Sun Pharma, HUL and Axis Bank, rising up to 2.23 per cent.

On the other hand, Infosys, Yes Bank, Bharti Airtel, M&M, Coal India and HDFC Bank fell up to 1.28 per cent.

Among the sectoral indices, the telecom stocks are the major loser, trading lower by 1.41 per cent at 977.25 points.

The 50-share NSE index Nifty too trading marginally lower by 0.90 points or 0.01 per cent at 10,734.55. ICICI Bank, Grasim, Vedanta Ltd, Ultratech Cement and IBUL Housing Finance are the major gainers. Infratel, Infosys, YES Bank, Bharti Airtel and M&M are leading the negative zone.

According to traders, public sector bank stocks rose after the finance ministry on Wednesday announced infusion of Rs 48,239 crore in 12 public sector banks (PSBs) in this fiscal to help them maintain regulatory capital requirements and finance growth plans.

Besides, investor sentiment was also positive on buying by domestic institutional investors (DIIs) and foreign institutional investors (FIIs).

On a net basis, DIIs were net buyers to the tune of Rs 113.27 crore, and FIIs also bought shares worth a net of Rs 713.47 crore on Wednesday, provisional data available with BSE showed.

Investors also took cues from other Asian equities that were trading positive after the US Federal Reserve minutes affirmed that the central bank would be patient on interest rate hikes, amid anticipation of a resolution to US-China trade tiff.

(Inputs from PTI)

9.50 am

IT sector hits 3-year high in FY19

Nasscom Chairman Rishad Premji and President Debjani Ghosh address a press conference at the Nasscom Technology & Leadership Forum 2019, in Mumbai on Wednesday PAUL NORONHA

 

The IT industry seems to be coming out of the woods, with Nasscom saying the sector grew 9.2 per cent in FY19 against the forecast of 7-9 per cent. This is the highest growth recorded by the sector in the last three years though still short of the double-digit growth seen before 2014. Read more on the IT sector growth report and the sector outlook here

The IT stocks were trading lower by 0.49 per cent at 15,024.43 points in the benchmark index Sensex

9.35 am

Forex market

Dollar firmer versus yen on solid US jobs data. File Photo   -  Reuters

 

The dollar inched up after minutes from the Federal Reserve's last meeting revived expectations for a possible US rate hike this year, while investors shifted their focus back to trade issues for fresh directional cues. The dollar index against a basket of six major currencies added 0.1 per cent to 96.569. Read the forex market report here

9.25 am

Stocks in focus today

The board of Tech Mahindra will meet to consider a proposal to buy back fully paid-up equity shares of the company. Shareholders would be keen to know the offer size and price. Besides, promoters’ interest would also evoke keen interest. Another important factor would be the mode of purchase — through the open market or through tender route on proportionate basis. If the latter is the mode of buyback, then the record date would be crucial.

Shares of Dynamatic Technologies may remain in focus, as the company has signed a memorandum of understanding with Russian Helicopters, a part of Russia’s Defence major Rostec Corporation, for Ka-226T helicopter. Under the agreement, the company will explore options for assembling some parts of Ka-226T helicopters, including fuselage. Investors and shareholders will closely monitor further developments and order flow from this deal.

Aarti lndustries, on Wednesday, said it has bagged a $125-million (₹900-crore) contract from a global firm to supply a high-value specialty chemical intermediate for 10 years. It estimates an investment of about $15 million to set up a commercial scale manufacturing facility (in Gujarat) for the intermediate production that is not part of the existing product range. The plant is expected to be commissioned in Q4 of FY21, with an average annual revenue of $12.5 million.

9.15 am

Opening bell

The 30-share BSE index Sensex opened 80.74 points higher at 35,837 points against the previous close of 35,756.26. The 50-share NSE index Nifty opened marginally higher at 10,741.30, by 5.85 points.

9.10 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:

₹2106 • HDFC Bank

S1

S2

R1

R2

COMMENT

2090

2077

2120

2135

Initiate fresh long positions with a stiff stop-loss if the stock reverses higher from ₹2090 levels

 

₹740 • Infosys

S1

S2

R1

R2

COMMENT

732

725

747

755

Consider initiating fresh long positions with a tight stop-loss only if the stock of Infosys moves above ₹747 levels

 

₹275 • ITC

S1

S2

R1

R2

COMMENT

272

269

277

280

The stock consolidates sideways in a very narrow range. Desist trading in the stock for the session

 

₹144 • ONGC

S1

S2

R1

R2

COMMENT

141

138

147

150

Fresh long positions can be initiated with a fixed stop-loss if the stock of ONGC rebounds up from ₹141 levels

 

₹1235 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1220

1205

1250

1265

Fresh long positions are recommended with a tight stop-loss only if the stock of RIL climbs above ₹1,250 levels

 

₹267 • SBI

S1

S2

R1

R2

COMMENT

262

256

275

282

Make use of intra-day dips to buy the stock of SBI while maintaining a fixed stop-loss at ₹262 levels

 

₹1914 • TCS

S1

S2

R1

R2

COMMENT

1890

1870

1930

1950

Initiate fresh long positions with a tight stop-loss only if the stock of TCS advances above ₹1,930 levels

 

10751 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

10700

10650

10800

10850

Fresh long positions can be initiated with a fixed stop-loss if the contract reverses higher from 10,700 levels

 

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

9.00 am

Today's Pick

 

We recommend a buy in the stock of Deepak Fertilisers at the current levels of ₹125.3. the stock has jumped 5 per cent accompanied by above average volume on Wednesday, breaking above a key hurdle at ₹120 levels. Traders can buy the stock with a stop-loss at ₹122.5. Read our stock recommendation and stock activity of Deepak Fertilisers here

Published on February 21, 2019