Sensex zooms 530 points to close at new high of 40,889, telecom shares shine

Nifty rides up 164 points at 12,079

 

3:40 pm

Closing bell

The Benchmark Sensex on Monday surged 530 points to hit a fresh closing high of 40,889.23, driven by gains mainly in telecom, metal and auto stocks, amid renewed optimism over US-China trade truce.

After touching its record intra-day high of 40,931.71, the 30-share BSE Sensex ended 529.82 points, or 1.31 per cent, higher at 40,889.23.

Similarly, the broader NSE Nifty settled just shy of its life-time closing high, up 164 points at 12,079.75.

Bharti Airtel was the top gainer in the Sensex pack, rallying over 7.20 per cent, followed by Tata Steel 4.99 per cent, IndusInd Bank 3.49 per cent, Axis Bank 3.26 per cent and HDFC 2.57 per cent.

On the other hand, ONGC fell 2.17 per cent and Yes Bank shed 1.70 per cent.

According to traders, domestic benchmarks followed global equities which were enthused by reports that a preliminary trade deal between the US and China may be signed by the end of this year.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading up to 1.50 per cent higher.

Stocks in Europe were also trading on a positive note.

On the currency front, the rupee was flat against the US dollar at 71.71.

Brent futures, the global oil benchmark, rose 0.11 per cent to USD 62.44 per barrel. - PTI

3:18 pm

Yen at one-week low as renewed trade hopes lift risk sentiment

File Photo   -  Reuters

 

Positive news flow on the Sino-US trade front lifted market sentiment on Monday, driving the Japanese yen to a one-week low and fuelling 0.2-0.3 per cent gains on trade-focused currencies, from the Norwegian crown to the New Zealand dollar.

The British pound climbed, too, with opinion polls continuing to point to a firm lead for Prime Minister Boris Johnson's Conservative Party, whose election manifesto pledged a quick Brexit, tax cuts and more spending. Click here to read in full the forex report.

3:00 pm

AGR issue: No wilful default, says Airtel in its review petition

Airtel has told the Supreme Court that there was no wilful default in the payment of licence fee in the form of Adjusted Gross Revenue.

In a review petition filed by the telecom operator, the operator has argued that since it had won five rounds of litigation previously, there was no justification for paying interest and penalty on the disputed amount. “The interpretation of AGR has been in dispute since 2003 before the expert bodies as well as the court. It is stated that since all those judgements were ruled in favour of the petitioner (Airtel), it has acted on the basis of the directions given in those judgements,” Airtel has said in its review petition before the Supreme Court. Click here to read in full the report on Bharti Airtel's review petition in the apex court.

14:40 pm

Sensex, Nifty surge over 1 per cent

The Sensex and the Nifty surged over 1 per cent in the afternoon session on Monday.

The Sensex was at 40,835, up 476 points or 1.18 per cent higher, while the Nifty was at 12,058, up 143 points or 1.21 per cent firmer.

The top gainers on the Sensex were Bharti Airtel, Tata Steel, IndusInd Bank, Vedanta and HDFC, while the laggards were YES Bank, ONGC and ITC.

Airtel, which has been on the uptrend since the open, extended its gains to 5.56 per cent ahead of the close.

The gains in Airtel seemed to have lifted the telecom counter on the BSE sectoral index, rising 5.65 per cent during the session. The metal index gained 3.20 per cent, and the basic materials and auto index 1.83 per cent and 1.73 per cent respectively.

 

2:20 pm

European shares lifted by US-China trade optimism

The pan-European STOXX 600 index gained 0.2 per cent, with lender-heavy Milan and Madrid outperforming. File Photo   -  Bloomberg

 

European shares rose for the second straight session on Monday following reports that Washington and Beijing were nearing a trade agreement, while LVMH gained after signing a deal to buy US jewellery chain Tiffany.

A Chinese state-backed tabloid said on Monday China and the US were “very close” to an initial trade agreement, adding to optimism from Friday, when the presidents of both the countries reiterated their desire for a deal.

The pan-European STOXX 600 index was up 0.6 per cent at 0802 GMT, led by trade-sensitive miners. Click here to read the European markets report in full.

 

2:10 pm

Oil gains on fresh hopes for US-China trade talks

 

Oil prices rose on Monday as positive noises from Washington over the weekend rekindled hopes in global markets that the US and China could soon sign an interim deal to end their bitter trade war.

West Texas Intermediate (WTI) crude rose 18 cents, or 0.31 per cent to $57.95 a barrel by 0626 GMT, having ended last week little changed after tracking ups and downs in the trade talks process.

Brent crude futures were at $63.66, up 27 cents or 0.43 per cent, the benchmark having also finished little changed last week. Click here to read in full the oil markets report.

2:00 pm

Asian markets edge up

 

Asian shares staged a cautious rally on Monday as investors dared to hope for some progress in the endless Sino-US trade dispute, while the out-performance of recent US economic data gave the dollar a leg up on its peers.

MSCI's broadest index of Asia-Pacific shares outside Japan bounced 0.7 per cent, after losing 0.4 per cent last week. Japan's Nikkei firmed 0.7 per cent, while Australian stocks rose 0.5 per cent and Shanghai blue chips 0.3 per cent.

E-Mini futures for the S&P 500 added 0.2 per cent, while EUROSTOXX 50 futures gained 0.6 per cent. FTSE futures firmed 0.3 per cent. Click here to read in full the Asian markets report.

 

1:40 pm

SpiceJet shares fall 3 per cent

SpiceJet shares fell up to 3 per cent on Monday amid reports that company faces liquidity crunch and is planning to raise Rs 750 crore through qualified institutional placement (QIP).

The scrip of the low cost carrier declined 2.92 per cent to Rs 106.30 on the Bombay Stock Exchange (BSE). Click here to read in full the SpiceJet share price report.

1:30 pm

DHFL stock falls up to 5 per cent as company defers release of financial results

 

DHFL shares tumbled up to 5 per cent on Monday after after the company said it will not be able to declare financial results on the scheduled date.

The scrip tanked 4.95 per cent to Rs 21.10 on the Bombay Stock Exchange (BSE).

At the National Stock Exchange (NSE), it declined 4.95 per cent to Rs 21.10. Click here to read in full the DHFL share price report.

 

1:15 pm

RJio submits bids for RCom assets

 

Reliance Jio Infocomm (RJio), a company controlled by India's richest man Mukesh Ambani, has placed bids for the assets of debt-laden Reliance Communications (RCom) on Monday. Click here to read in full the report on RJio bids for RCom assets.

 

12:50 pm

Nifty call: Tread with caution as the risk-reward is not favourable at current levels

 

The Indian benchmark indices are on the rise today, tracking the positive sentiment in other Asian markets. The Nifty and the Sensex are up 0.8 per cent, taking cues from the Nikkei, which rose 0.7 per cent and the Hang Seng index, which gained 1.6 per cent today.

The decline in the November futures contract of the Nifty 50 index on Friday was arrested by support at 11,900; it closed the week just above that level at 11,914. In today’s session, backed by the support and the risk-on sentiment, the futures contract has been rising since the session open, and is currently trading above the critical level of 12,000.  Click here to read in full the Nifty call report.

12:30 pm

‘Urban co-op banks should create redemption reserve for deposits of over Rs 1 lakh’

To help restore depositors' confidence in urban co-operative banks (UCBs), these banks should create a deposit redemption reserve for deposits in excess of Rs 1 lakh, say co-operative banking experts.

The suggestion comes in the backdrop of the massive fraud at Punjab and Maharashtra Co-operative (PMC) Bank.

Many depositors of the bank, both individual and institutional, are uncertain about the fate of their deposits of over Rs 1 lakh, which are uninsured. The bank has been placed under Directions due to losses (estimated at Rs 4,335 crore) caused on account of irregular lending to real estate group HDIL. Click here to read in full the report on need for UCBs to maintain deposit redemption reserves.

12:10 pm

Unichem Laboratories shares rise over 7 per cent

Shares of Unichem Laboratories surged over 7 per cent on Monday after the company got approval from the US health regulator for Atenolol tablets.

Shares of the drug firm gained 7.04 per cent to trade at Rs 164 on the BSE. On the NSE, the stock was up 7.22 per cent at Rs 164.

Unichem Laboratories on Friday said it has received approval from the USFDA to market its generic Atenolol tablets used for the treatment of hypertension. “Unichem Laboratories Ltd has received ANDA approval for its Atenolol tablets USP, 25 mg, 50 mg, and 100 mg from the United States Food and Drug Administration (USFDA) to market a generic version of TENORMIN (Atenolol) Tablets, 25 mg, 50 mg, and 100 mg, of Alvogen Malta Operations Ltd,” the company said in a BSE filing.

The filing came in the late evening on Friday. The product will be commercialised from the company’s Ghaziabad plant, it added. - PTI

 

11:50 am

Sensex, Nifty extend gains

The benchmark indices, the Sensex and the Nifty, extended their morning gains at mid-session on Monday.

The Sensex had spiked up 305 points or 0.76 per cent to quote at 40,664, while the Nifty gained  93 points or 0.79 per cent to rise above the 12,000-level to quote at 12,008.

The top gainers on the Sensex were Bharti Airtel,  which surged over 5 per cent, followed by Tata Steel (up 3.35 per cent), Vedanta (2.36 per cent), IndusInd Bank (1.64 per cent) and Maruti (up 1.63 per cent).

On the other hand, YES Bank dropped 2.16 per cent during the session, followed by ONGC, ICICI Bank, HCL Tech and NTPC, which eased between 0.30 and 0.70 per cent.

Among the BSE sectoral indices, the top gainers were the telecom shares, which gained 4.83 per cent, metals (2.59 per cent) and realty and basic material (up 1.44 per cent).

The utilities shares were flate while oil and gained 0.23 per cent during the session.

 

11:40 am

Inox Wind zooms over 13 per cent after SECI grants extension for Gujarat project

 

Inox Wind shares on Monday surged over 13 per cent after the company got an extension from SECI for commissioning a wind power project in Gujarat.

Shares of the wind energy solutions provider were trading 8.82 per cent up at Rs 34.25 a piece on the BSE. On the NSE, the stock zoomed 13.57 per cent to Rs 36.40. Click here to read in full the Inox Wind share price report.

11:30 am

Edelweiss Fin Services up nearly 4 per cent after subsidiary raises funds

 

Edelweiss Financial Services shares rallied nearly 4 per cent on Monday after the NBFC arm of Edelweiss Group raised Rs 515 crore through non-convertible debentures.

On the BSE, the stock rose 3.87 per cent to Rs 127.30. The scrip was trading at Rs 127.50, up 3.78 per cent, on the NSE.

ECL Finance Ltd (ECLF), the NBFC arm of Edelweiss Group, raised Rs 515 crore in tranch II of a public issue of secured redeemable non-convertible debentures, Edelweiss Financial Services said in a BSE filing on Sunday.

Click here to read more on the Edelweiss Financial Services share price report.

 

11:20 am

Reliance Communications shares rally 6 per cent to hit upper circuit

Shares of Reliance Communications (RCom) hit their upper circuit on Monday, rising over 6 per cent, amid reports that Bharti Airtel, Reliance Industries and three others may bid for the assets of debt-ridden company.

On the Bombay Stock Exchange (BSE), shares of the company rose 4.55 per cent to 69 paise apiece. Click here to read in full the Reliance Communications share price report.

11:10 am

CG Power forays into EV bus segment

Troubled power equipment maker CG Power has forayed into the Electric Vehicle segment.

CG India has designed and developed a dedicated EV motor for 12-meter passenger buses developed in-house with its own design and technology, the company said in its annual report.  Click here to read in full the report on CG Power's foray into EV bus segment.

11:00 am

Gold prices to remain under pressure on easing global worries

 

India spot gold is likely to remain lower on Monday, as international geopolitical fears appeared to be easing. Since touching a peak of Rs 38,856 per 10 grams (for 999 purity spot as quoted by IBJA) on November 1, the yellow metal has remained under pressure.

With markets entering the last week of November, gold prices may face further pressure towards the month-end, primarily in the absence of any significant international factor fuelling prices. US-China trade tensions appeared to be easing, with positive developments towards an interim truce. Click here to read in full the report on gold price movements.

10:45 am

Daily Rupee call: Rupee might weaken today

 

The rupee (INR) seems to be indecisive in its movement against the dollar (USD) as it continues to consolidate within the tight range between 71.7 and 71.9. Thus, the broader range between 71.6 and 72 is still valid and the domestic currency can be expected to trend only if it moves out of the range. As we can observe, the support at 72 remains strong in the weekly chart. Click here to read more on the Daily Rupee Call.

10:25 am

Dollar boosted by trade progress signs, Brexit promise lifts sterling

File Photo   -  Reuters

 

The dollar and export-focused currencies edged higher on Monday on broadly upbeat headlines about US-China trade talks, while the pound climbed on hopes of an imminent Brexit and an end to years of political paralysis.

Moves were marginal, however, as scepticism and weariness of newsflow about both US-China trade negotiations and Brexit kept investors cautious.

Sterling rose 0.2 per cent to $1.2854 in Asian trade, lifting it from an almost two-week low hit on Friday following surveys showing businesses in their deepest funk since 2016. Click here to read in full the global forex markets report.

10:15 am

Rupee falls 2 paise against dollar in early trade

The rupee on Monday fell 2 paise to 71.73 against the US dollar in early trade, amid increased demand for the greenback by banks and importers.

Strengthening crude oil prices also impacted the rupee movement in the market, forex dealers said.

However, a higher opening in the domestic equity markets and persistent foreign fund inflows restricted the rupee’s fall, they added. Click here to read more on the rupee movement.

10:10 am

Oil gains on fresh hopes for US-China trade talks

 

Oil prices began the week on a brighter note on Monday, posting early gains as positive noises from Washington over the weekend rekindled optimism in global markets that the United States and China could soon sign a deal to end their bitter trade war.

West Texas Intermediate (WTI) crude rose 10 cents, or 0.17 per cent to $57.87 a barrel by 0220 GMT, having ended last week little changed after tracking ups and downs in the trade talks process. Brent crude futures were at $63.46 was up 7 cents, or 0.11 per cent, the benchmark having also finished little changed last week. Click here to read in full the oil markets report.

9:55 am

Sensex, Nifty extend gains

The benchmark indices, which opened in the green, firmed up in early session, notching up gains of over 0.50 per cent each.

The Sensex was trading at 40,585, up 226 points or 0.56 per cent, while the Nifty was at 11,976, up 62 points or 0.52 per cent firmer.

The top gainers on the Sensex pack were Bharti Airtel, Tata Steel, Sun Pharma, Vedanta and Maruti, while the laggards were HCL Tech, Bajaj Auto, YES Bank, ICICI Bank and ONGC.

According to an agency report, the Sensex rose, tracking gains in index-heavyweights Infosys, Reliance Industries and Bharti Airtel amid positive cues from global equities.

On Friday, the Sensex ended 215.76 points, or 0.53 per cent, lower at 40,359.41. The Nifty settled 54 points, or 0.45 per cent, down at 11,914.40.

Foreign institutional investors bought shares worth Rs 305.72 crore in the capital market in the previous session, while domestic institutional investors sold equities worth Rs 177.37 crore, data available with stock exchange showed.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading on a positive note.

On the currency front, the rupee depreciated marginally against the dollar to trade at 71.72 in early session.

Brent futures, the global oil benchmark, rose 0.21 per cent to $63.52 per barrel. (with inputs from PTI)

9:45 am

Asian markets regain footing as mood swings on trade

Asian shares made guarded gains on Monday as investors dared to hope for some progress in the endless US-China trade dispute, while the outperformance of recent US economic data gave the dollar a leg up on its peers.

MSCI's broadest index of Asia-Pacific shares outside Japan bounced 0.8 per cent, after losing 0.4 per cent last week. Japan's Nikkei firmed 0.9 per cent, while Australian stocks rose 0.5 per cent and Shanghai blue chips 0.4 per cent. E-Mini futures for the S&P 500 added 0.3 per cent, while EUROSTOXX 50 futures gained 0.6 per cent. Click here to read in full the Asian markets report in full.

9:30 am

Big Story: The outlook for Indian IT companies

 

For the past few quarters, some of the large- and mid-tier IT services companies have been growing at a fair clip and bagging large deals. Digital deals have started to form a larger part of their revenues while core services for most large- and mid-sized players have seen tepid growth; most of the information-technology services companies’ revenue growth was supported by digital.

But the global economic slowdown and the US-China trade war have had a direct impact on many Indian IT services companies. Except for HCL Technologies, which has increased its revenue guidance (Infosys upped the lower-end of its revenue guidance), most Indian IT services companies have cut their FY20 guidances. Click here to read in full the Big Story on the outlook for Indian IT companies.

9:15 am

Opening bell

The markets opened in the green on Monday. The Sensex was at 40,484, up 124 points or 0.31 per cent higher, while the Nifty was at 11,934, up 19 points or 0.16 per cent higher.

9:10 am

Index Outlook: Nifty shows early signs of weakness

It was another monotonous week for the equity benchmark indices, the Sensex and the Nifty, as they moved in a sideways range. However, this time, the bias is negative as the significant resistances remain resilient, and there are initial signs of weakness.

Therefore, investors with a short-term perspective need to be watchful in the ensuing derivatives expiry week. Both the mid- and small-cap indices were also choppy in the past week and continue to show signs of weakness.

On the global front, the progress of the US-China trade deal talks needs to be observed along with the crude oil movement. Click here to read more on the Index Outlook.

 

9:00 am

Weekly Trading Guide for week beginning November 25, 2019

SBI (₹329.3)

After inching past the resistance at ₹324 — the 61.8 per cent Fibonacci retracement level of the prior bullish trend — the stock of SBI had been largely trendless and hovering around ₹330 over the past few trading sessions. But it has managed to form a higher peak, and the 21-day moving average continues to stay above the 50-day moving average, a bullish indication. As long as the price stays above ₹320, the near-term outlook for the stock looks positive. However, one needs to be cautious about certain weakness shown by indicators. By plotting the relative strength index in the daily chart, we can observe that the new high in the stock price is not accompanied by a new high in the indicator. This could lead to formation of a bearish divergence. Also, the moving average convergence divergence indicator is showing a loss of momentum in the uptrend. Hence, it is advised not be outright bullish and apply caution while taking new positions. If the stock gains momentum and advances, it will most likely reach ₹335 with ₹347 as the resistance above it. But if the stock declines from the current level, it has a support within a short span at ₹324. The subsequent support is at ₹315.

ITC (₹247.6)

The bearish trend continued as the stock of ITC declined last week. Noticeably, the stock has been in a downtrend since the beginning of the month, after marking its recent high at ₹266.3. Closing at ₹247.6, the stock closed with a loss for a third consecutive week. On Thursday, the stock closed below the support band between ₹247 and ₹250, confirming the break of the support. The uptick in price that followed seems to be a mere retracement before further weakening. Also, the price has slipped below the 50-day moving average. The daily relative strength index has dipped below the mid-point level of 50, and the moving average convergence divergence indicator has entered the negative territory, both of which indicate a bleak outlook for the stock. Thus, the possibility of continuation of the downtrend cannot be neglected. The stock will find support at ₹242, below which the support is at ₹234.05 — a 52-week low — where some profit- booking can be expected. But if price breaches that level, sell-off can intensify as the stock could attract more bears. On the other hand, if the stock recovers from the current level, ₹250 will act as a hurdle; beyond that, the resistance is at ₹258.

Infosys (₹693.2)

The stock of Infosys, after a sharp decline in October, has been on a recovery phase since the beginning of November. But recently, the price seems to be consolidating within a range between ₹690 and ₹725. The 21-day moving average coincides with the lower boundary of the range, making the support significant. Hence, the recent uptrend will not be under threat until the price stays above ₹690 and the short-term outlook is positive. But for the recovery to sustain, the stock must break out of the upper boundary of the range at ₹725. Of late, the moving average convergence divergence indicator suggests a loss in bullish momentum. So, a prolonged consolidation might trigger a downward movement. From a trading perspective, it is advisable to wait for the price to breach either of the boundaries of the range. Assuming that the stock breaks out of ₹725, the recovery will lift the price to ₹760. This is a critical level as the 61.8 per cent Fibonacci retracement of the previous bear trend coincides with the 50-day moving average. Further appreciation will take the stock price to ₹800. Alternatively, if the stock breaks down from the range, it could slump to ₹665, below which the support is at ₹620.

RIL (₹1,546.5)

Continuing with the strong rally, the stock of Reliance Industries registered a new lifetime high at ₹1,572.4 last week. The returns on the stock for the week was 5.1 per cent, indicating a substantial strength in the bullish trend. The corrective rally in the first week of November seems to be acting as a strong base for the stock to build a sustainable uptrend; the price is expected to clock new highs from the current levels in coming days. Though the stock is bullish, a couple of daily candlesticks in the past week has formed a shooting star pattern. This denotes a possible trend-reversal. Hence, it is recommended to initiate fresh long positions once the stock advances beyond ₹1,572.4, which could invalidate the pattern. But there are certain factors playing out in favour of the stock. The daily relative strength index is showing an uptick and the moving average convergence divergence indicator has moved back into the positive territory, hinting an improved bullish strength. On the back of this, if the stock breaks out of ₹1,572.4, it will most likely appreciate to ₹1,617 and to ₹1,665 beyond it. If the stock undergoes a correction, it has a support at ₹1,530. Below that level, the stock could decline to ₹1,500, which is a key support.

Tata Steel (₹400)

Though the stock of Tata Steel was volatile during the past week, it failed to trend in any direction. A mid-week decline was arrested by the 38.2 per cent Fibonacci retracement level of the previous bullish trend at ₹383. This level, along with the support at ₹380 has formed a support band. Also, ₹380 is the neck level of the double bottom pattern in the weekly chart. Hence, until the stock manages to trade above ₹380, the chances for price appreciation are high. Adding to it, the stock has bounced from the 21-day moving average at ₹392 and also remains above the 50-day moving average. But for the rally to be sustainable, the stock should decisively break out of ₹415. Even though the stock is staying above ₹380, there are certain indications to be wary of. The daily relative strength index is showing a downtick and the moving average convergence divergence indicator is exhibiting weakness by slipping below the zero level. The next leg of the trend will be established only if the stock either breaks ₹380 or ₹415. If it breaks out of ₹415, it can appreciate to ₹440, whereas a break below ₹380 may drag the price to ₹360.

 

Published on November 25, 2019