Sensex rallies 453 points to close above 39,000-mark

BSE building in Mumbai. File Photo   -  REUTERS

Nifty tops 11,550

3.45 pm

Closing bell

Extending its gains for the fifth consecutive session, equity benchmark BSE Sensex rallied 453 points on Thursday as global investors cheered a Brexit deal reached between Britain and the EU. Domestic traders were also enthused after Finance Minister Nirmala Sitharaman hinted at more stimulus measures as she urged international investors to pump funds into India.

After trading on a positive note through the day, the 30-share Sensex surged at the fag end of the session to end 453.07 points, or 1.17 per cent, higher at 39,052.06. It hit an intra-day high of 39,104.69 and a low of 38,557.43. The broader NSE Nifty too spiked 122.35 points, or 1.07 per cent, to settle at 11,586.35.

Yes Bank was the biggest gainer in the Sensex pack, soaring up to 15.19 per cent, followed Tata Motors, IndusInd Bank, SBI, Bajaj Auto, Asian Paints, Axis Bank, Tata Steel and Maruti, rising up to 9.82 per cent. On the other hand, HCL Tech, Vedanta, PowerGrid, Kotak Bank, Infosys, ONGC, Tech Mahindra, L&T and HDFC Bank fell up to 1.04 per cent.

According to traders, domestic market followed European equities that rallied after Britain and the European Union said they have struck an outline Brexit deal after prolonged negotiations. The deal, however, must still be formally approved by the bloc and ratified by the European and UK parliaments.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo ended on a mixed note. Further, Chinese government’s appeal to Washington to negotiate a quick end to their tariff war also buoyed market sentiment.

Meanwhile, the Indian rupee appreciated 24 paise to 71.19 against the US dollar intra-day. Brent crude futures, the global oil benchmark, fell 0.24 per cent to USD 59.28 per barrel. - PTI

3.25 pm

Broker's call

Reliance Securities

ACC (Buy)

CMP: ₹1,521.4

Target: ₹1,710

Notwithstanding dismal sale volume, ACC has reported a strong performance in 3QCY19 aided by higher-than-estimated average realisation and reduction in unitary opex. Its core operating profit grew by a strong 32 per cent y-o-y to ₹490 crore. EBITDA/tonne stood at about ₹747 (as against ₹547 in 3QCY18 and ₹943 in 2QCY19), which is about ₹200/tonne higher than our estimate. Read our Broker's call on ACC

3.10 pm

European stocks

The pan-European STOXX 600 was little changed, with bourses in Germany, Spain and Italy rising about 0.2 per cent. File Photo   -  Bloomberg

 

European stocks recovered from a weak start on Thursday, helped by strong earnings from Swedish telecoms gear maker Ericsson as signs of continuing political barriers to a Brexit deal hit domestically-focused UK firms.

By 0820 GMT, the pan-European STOXX 600 was little changed, with bourses in Germany, Spain and Italy rising about 0.2 per cent. Coming off its best weekly performance since February, the STOXX 600 has fallen modestly since last Friday in a week dominated by worries over whether UK will be able to seal a deal to smoothly leave the European Union by October 31. Read more on the European stock markets updates here

2.55 pm

Indiabulls Housing Fin shares surge

Indiabulls Housing Finance.   -  BusinessLine

 

Shares of Indiabulls Housing Finance rallied nearly 6 per cent on Thursday after rating agency Crisil said the company has aggregate liquidity to cover its debt repayment obligations till September 2020. Indiabulls Housing Finance (IBHFL) stock gained 5.44 per cent to trade at ₹182.30 on the BSE. On similar lines, the scrip was trading up 5.95 per cent at ₹183.35 on the NSE.

Crisil noted that IBHFL continues to maintain strong liquidity with cash and cash equivalents at around 20 per cent of total assets as on October 10, 2019. Read more on Crisil rating on Indiabulls Housing Finance here

2.40 pm

Rupee outlook

Rupee was trading at 70.81 against the dollar. File Photo   -  BusinessLine

 

The rupee, which had been holding between 70.75 and 71.4 against the dollar since the beginning of October, came under considerable selling pressure from the beginning of this week. On Wednesday, it closed at 71.43.

The rupee is the weakest Asian currency this month and year-to-date the currency has declined by 2.4 per cent against the dollar. This was despite FPIs pumping money into the financial markets. The dollar index is currently trading above a crucial support of 98. If the index breaks below that level, it could face some pressure, possibly correcting to 97 levels. Click here to read more on the outlook for rupee here

2.25 pm

Sensex surges 340 points

The 30-share BSE index Sensex surged 348.56 points or 0.90 per cent to 38,943.32.

The broader index Nifty was up 0.73 per cent or 83.80 points to 11,547.80.

2.10 pm

Broker's call

Geojit

Infosys (Reduce)

CMP: ₹771.45

Target: ₹729

 

Infosys registered a solid top line growth of 9.8 per cent y-o-y in Q2FY20 (CC growth at 11.4 per cent), largely in-line with consensus estimates. Growth across geographies was led by North America (+11.8 per cent y-o-y) followed by Europe (+10.5 per cent). Among the business segments, Utilities (+17.2 per cent y-o-y) and Communication (+17.1 per cent) led the increases followed by Manufacturing (+15.2 per cent). Read our Broker's call on Infosys

1.55 pm

Edelweiss Financial rises 

Shares of Edelweiss Financial Services on Thursday were trading over 3 per cent higher following the Competition Commission’s approval for the US-based Kora’s proposed investment worth USD 75 million (about Rs 532 crore) in Edelweiss Group.

Edelweiss Financial rises 3% as CCI clears Edelweiss-Kora deal

Shares of Edelweiss Financial Services on Thursday were trading over 3 per cent higher following the Competition Commission’s approval for the ...

Read More  

1.40 pm

Nifty Call

 

Looking at the market breadth of the Nifty 50 index, the gainers and losers are almost equally split where 27 stocks have advanced and the remaining 23 stocks have declined. India VIX, the Indian volatility index is at 15.9 levels, down by considerable 2.8 per cent.

The October futures contract of the Nifty 50 index is marginally trading above the key level of 11,500 after opening the day at 11,480 against the previous close of 11,475. Read the Nifty call for October futures here

1.25 pm

RIL will hit $200-b m-cap in 2 years

Reliance Industries’ ratings are supported by its strong business profile and robust refining asset quality, Fitch said.   -  Bloomberg

 

Reliance Industries would be the first Indian company to reach $200-billion market cap in 24 months, Bank of America Merrill Lynch said on Wednesday. Currently, RIL commands a market cap of $122 billion.

In a report, BofA-ML said, its analysis indicates that incrementally three transformational drivers — new commerce venture, fixed broadband business and digital initiatives — could add $55-billion enterprise value for the company. Read more on BofA-ML's report on Reliance Industries' market capitalisation

The stocks of Reliance Industries were trading 0.86 per cent higher at Rs 1,384.55.

1.10 pm

Sensex jumps 200 points

The 30-share BSE index Sensex jumped over 200 points in the afternoon trade. The Sensex was trading higher at 38,804.19, up 205.20 points or 0.53 per cent. Similary, the NSE index Nifty was also trading 42.50 points or 0.37 per cent higher at 11,506.50.

The bank and financial stocks were lending support to the index after a dull morning trade.

The major gainers in the Sensex pack were Yes Bank, IndusInd Bank, Axis Bank, State Bank of India and Asian Paints while the stocks trading in red were Vedanta, Tata Steel, Tech Mahindra, ONGC and HCL Technologies.

In the broader index, the top gainers were Yes Bank, Eicher Motors, IndusInd Bank, Britannia, Zee Entertainment and the laggards were Vedanta, Hindalco, Grasim, Tata Steel, Ultra Cement.

12.55 pm

Nalco shares slump

Shares of NALCO lost over 4 per cent after the company said coal shortages have severely impacted its aluminium production. Shares of the state-owned firm shed 4.08 per cent to trade at ₹39.95 apiece on the BSE. On the NSE, the scrip declined by 4.08 per cent to ₹40 apeice.

NALCO shares slump 4% on coal shortage

Shares of NALCO lost over 4 per cent on Thursday after the company said coal shortages have severely impacted its aluminium production.Shares of the ...

Read More  

12.40 pm

With FPIs turning buyers, is the worst over for Indian equities?

 

FPIs have bought over ₹2,750 crore in the secondary market since last Friday, while domestic investors, despite remaining sellers on Friday and Monday, bought in ₹1,406.67 crore in the last four days. According to analysts, Indian markets may remain volatile in the short-term, but they do not see any big fall from current levels.

Does this mean, better days are ahead for Indian equities? Click here to read more

12.25 pm

Gold and precious metals

Spot gold was down 0.1% at $1,488.35 per ounce. File Photo   -  Bloomberg

 

Gold prices eased on Thursday and held below the $1,490 an ounce level, as traders refrained from making any big bets in the absence of fresh developments on the Sino-US trade war front and Brexit negotiations.

Spot gold was down 0.1 per cent at $1,488.35 per ounce by 0402 GMT. US gold futures also slipped 0.1 per cent, to $$1,492.10. Among other precious metals, palladium notched a record high of $1,782.60 an ounce, extending gains into a fourth session on supply concerns. Read more on the prices of gold and other precious metals here

12.10 pm

Mindtree stocks fall 2%

Shares of IT firm Mindtree fell over 2per cent

 

The shares of Mindtree Ltd fell 2.21 per cent to Rs 726.90 after the tech firm announced its September-quarter results on Wednesday. On the NSE, the stocks fell 2.27 per cent to Rs 726.50.

On Wednesday, the IT firm reported a 34.6 per cent decline in consolidated net profit to Rs 135 crore for the September quarter, and said it sees a strong deal pipeline in second half of the current fiscal. The Bengaluru-based company saw its revenue grow 9.1 per cent to Rs 1,914.3 crore in the quarter under review from Rs 1,755.4 crore in the year-ago period. Read the September quarter results of Mindtree here

11.55 am

Quick Take | Revise fisc numbers in the wake of slowdown

The US-China trade tensions will cumulatively reduce global GDP by 0.8 per cent by 2020, points out IMF.

 

Following the Reserve Bank of India’s revision of India’s GDP growth for FY20 downwards to 6.1 per cent last week, the IMF has also revised India’s growth in 2019 to similar levels, while maintaining that growth in 2020 could be better, at 7 per cent. Macro data releases continue to point towards stress in both domestic and external conditions. But it is uncertain if the Centre is factoring in the revised growth outlook in its fiscal calculations.

Choosing to ignore the impact of the revised outlook on fiscal numbers might cost the Centre dear. Read our Quick Take on fiscal numbers and Indian economy

11.40 am

Metal stocks drag

The shares were little changed, in line with broader Asia, as investors were jilted by weak retail sales data from the United States, but hopes of upbeat corporate earnings in the domestic market kept losses in check.

The broader NSE index was down 0.09 per cent or 10.80 points at 11,453.20, while the benchmark BSE index rose 0.06 per cent or 24.83 points at 38,623.82.

MSCI's broadest index of Asia-Pacific shares outside Japan was slightly higher after data showed U.S. retail sales contracted in September for the first time in seven months, in a potential sign that manufacturing-led weakness could be spreading to the broader economy.

Meanwhile, investors in India hoped that the government's corporate tax cut last month would give fillip to companies' September-quarter earnings. “The calm on the global side due to the mid-term resolution between the United States and China and better results will drive markets,” said Rusmik Oza, head of fundamental research at Kotak Securities. “There could be healthy earnings growth because of the tax cut.”

Media stocks were among top gainers on the indexes with the Nifty Media index rising as much as 1 per cent, driven by sector heavyweight Zee Entertainment Enterprises Ltd, which is scheduled to report earnings later in the day. Zee shares were up about 1 per cent.

Eicher Motors, however, topped the Nifty index and rose 3.75 per cent.

Meanwhile, battered mining and steel stocks continued to fall and were among the top losers for the day sending the metals index down 1.4 per cent. JSW Steel, Vedanta Ltd and Hindalco were all down between 2 per cent and 2.5 per cent.

Dewan Housing Finance Ltd (DHFL) shares fell 5 per cent after a media report the company gave loans to a firm at the centre of investigations into the operations of a gangster. - Reuters

11.25 am

Forex market

Dollar nurses overnight losses, risk appetite cautious. File Photo   -  Reuters

 

The dollar nursed losses amid gathering doubts about a mooted Sino-U.S. trade deal, while the volatile pound was on edge as Britain and the European Union scrambled to secure a last-minute Brexit deal.

Sterling edged lower to $1.2818 after swinging about a five-month high overnight, knocked around by a series of mixed headlines on the likelihood of progress at an EU leaders summit in Brussels later on Thursday. Read the forex market report here

11.10 am

Commodities market

 

Oil prices eased after industry data showed a larger-than-expected build-up in stocks in the United States, although losses were limited by comments by US Treasury Secretary Steven Mnuchin on a US-China trade deal.

Global benchmark Brent crude oil futures was down by 47 cents, or 0.8 per cent, at $58.95 a barrel by 0330 GMT. US crude oil futures were down 48 cents, or 0.9 per cent, at $52.88 after earlier dropping more than 1 per cent to a session low of $52.76 earlier. Read the commodities market report here

10.55 am

US stocks

Of the 11 major sectors in the S&P 500, six closed in negative territory.   -  Bloomberg

 

Wall Street lost ground on Wednesday as weak US economic data and simmering geopolitical tensions spooked buyers away from the equities market, despite a string of generally positive third-quarter earnings reports.

Analysts currently expect S&P 500 third-quarter earnings to fall by 3 per cent, which would mark the first year-on-year contraction since the earnings recession that ended in 2016. However, of the 43 S&P 500 companies to have posted third-quarter results so far, 86 per cent have beaten expectations. Read more on the US stock markets report here

10.40 am

Sensex gains over 60 points

Equity benchmark BSE Sensex rose over 60 points in early trade led by gains in banking stocks amid sustained foreign fund inflows. Besides, easing global crude prices also helped buying sentiment, traders said.

The 30-share index was trading 75.94 points, or 0.20 per cent, higher at 38,674.93 in morning trade. The broader NSE Nifty was trading almost flat - up 8.70 points, or 0.08 per cent, at 11,472.71.

Top gainers in the Sensex pack included HDFC, ITC, TCS, NTPC, Asian Paint, L&T, IndusInd Bank, HDFC Bank, Axis Bank, SBI and Sun Pharma. On the other hand, Vedanta, Tata Steel, ONGC, HCL Tech, M&M, TechM and Tata Motors fell up to 1.94 per cent.

In the previous session, the 30-share BSE Sensex ended 92.90 points, or 0.24 per cent, higher at 38,598.99. On similar lines, the broader NSE Nifty rose 35.70 points, or 0.31 per cent, to settle at 11,464.

Foreign institutional investors (FIIs) continued to be net buyers in the capital market, infusing Rs 686.33 crore on Wednesday, and domestic institutional investors bought shares worth Rs 1,576.73 crore, data available with stock exchange showed.

Elsewhere in Asia, bourses in Hong Kong, Shanghai and Tokyo were trading on a positive note, while those in Seoul were in the red. The US markets finished modestly lower on Wednesday after a subdued retail sales report.

Brent futures, the global oil benchmark, fell 0.69 per cent to USD 59.01 per barrel. The rupee, meanwhile, strengthened by 3 paise against the US dollar to trade at 71.40 in early session. - PTI

10.25 am

Currency market

Rupee gained some strength and was trading at 71.39 against the US dollar in early trade.   -  Bloomberg

 

The Indian rupee opened 5 paise higher at 71.38 against the US dollar in early trade on Thursday tracking positive opening in domestic equities and foreign fund inflows. At the interbank foreign exchange, the rupee opened on a positive note at 71.38 then lost momentum and fell to 71.47 against the US dollar, showing a decline of 4 paise over its previous closing. Click here to read more on the local currency market

10.10 am

Global markets

South Korean, Australian and New Zealand indexes were all in negative territory. File Photo   -  Bloomberg

 

Asian stocks barely moved as soft US retail sales data raised fears about the health of the world's largest economy, sucking the steam out of a five-session rally, while hopes of a Brexit deal kept sterling volatile.

Chinese shares were mostly flat while Japan's Nikkei ticked up and US stock futures were barely changed. That left MSCI's broadest index of Asia-Pacific shares outside Japan slightly higher with gains largely led by Hong Kong's Hang Seng index. Read the global stock markets report here

9.55 am

Sensex in green; Nifty in red

The 30-share BSE index Sensex was trading marginally higher at 38,657.56, up 48.95 points or 0.13 per cent while the broader index Nifty was trading marginally lower by 4.35 points or 0.04 per cent at 11,459.65.

The top gainers in the Sensex pack were HDFC, ITC, TCS, Yes Bank and Asian Paint while the laggards were Vedanta, Tata Steel, ONGC, HCL Technologies, and Tech Mahindra. Among the sectoral indices, the metal stocks emerged biggest loser.

In the 50-share index, the major gainers were Eicher Motors, Yes Bank, Zee Entertainment, Tata Motors and Dr Reddy's while the stocks of Hindalco, Vedanta, JSW Steel, Tata Steel and Grasim.

9.40 am

Investors wealth

 

Individual investors’ wealth in financial asset increased 11 per cent to ₹262-lakh crore (₹236-lakh crore) with direct investment in equity, fixed deposit and insurance topping the chart.

Karvy Private Wealth estimates individual wealth in India to touch ₹799-lakh crore in the next five years with allocation to financial assets accounting for 66 per cent and that of physical assets touching 34 per cent. Click here to read more on investors' wealth in FY19

9.25 am

Stocks in focus

The board of directors of Patel Integrated Logistics will meet on Thursday to consider various fund-raising options, including capital issuance. Shareholders would be keen to know the mode of fund-raising, the quantum and the price of the issue (if it’s through equity issuance). With the stock slumping 57 per cent year-to-date and 75.3 per cent in the three-year period, shareholders would also be looking at the purpose of the meet and any management comments on the business prospects.

The board of embattled Dewan Housing Finance will meet on Thursday to declare its April-June quarter. It may be recalled that Central Depository Services has frozen debt-ridden DHFL’s promoter shareholding since the company has not reported results for the first quarter of FY20. Recently, DHFL appointed KK Mankeshwar as its new statutory auditor after Chaturvedi and Shah LLP resigned in August. Earlier, Deloitte Haskins & Sells too quit as auditor of DHFL.

Popular companies 3i Infotech, Adroit Infotech, Automotive Stampings and Assemblies, Chennai Petroleum Corporation, Cyient, Force Motors, Jay Bharat Maruti, Larsen & Toubro Infotech, Mastek, PVR, Shemaroo Entertainment (board will also consider fund raising), South Indian Bank, TVS Motor Company and Zee Entertainment Enterprises will declare their September 2019 quarter results on Thursday.

9.15 am

Opening bell

The 30-share BSE index Sensex opened 48.45 points higher at 38,647.44 against the previous close of 38,598.99. Meanwhile the 50-share NSE index Nifty opened 12.5 points lower at 11,451.60 against the previous close of 11,464.

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:

₹1221 • HDFC Bank

S1

S2

R1

R2

COMMENT

1210

1195

1235

1250

Consider initiating fresh short positions with a stiff stop-loss if the stock falls below ₹1,210 levels

 

₹771 • Infosys

S1

S2

R1

R2

COMMENT

763

755

776

785

Fresh long positions are recommended with a fixed stop-loss only if the stock moves beyond ₹776 levels

 

₹243 • ITC

S1

S2

R1

R2

COMMENT

240

237

247

250

Make use of intra-day rallies to initiate fresh short positions while maintaining a stiff stop-loss at ₹247 levels

 

₹141 • ONGC

S1

S2

R1

R2

COMMENT

138

135

144

147

Initiate fresh long positions with a tight stop-loss only if the stock of ONGC reverses higher from ₹138 levels

 

₹1372 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1360

1345

1385

1400

Initiate fresh short positions with a stiff stop-loss only if the stock of RIL falls below ₹1,360 levels

 

₹255 • SBI

S1

S2

R1

R2

COMMENT

250

242

263

270

The stock of SBI has been range-bound over the past five trading sessions. Desist trading in it for the session

 

₹2045 • TCS

S1

S2

R1

R2

COMMENT

2025

2000

2065

2085

Utilise intra-day declines to buy the stock of TCS while retaining a tight stop-loss at ₹2,025 levels

 

11482 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

11430

11380

11530

11580

Fresh long positions can be initiated with a fixed stop-loss if the contract rallies above 11,530 levels

 

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

9.00 am

Today's Pick

sparc

 

We recommend a buy in the stock of SPARC at the current levels of Rs 129.5. As the stock reverses higher from the key medium-term support and backed by positive divergence, the short-term outlook appears to be bullish. Targets are ₹135 and ₹138. Read our stock recommendation of SPARC here

Published on October 17, 2019