Sensex, Nifty end at record highs, Infosys rallies 5 per cent

Closing bell

Market benchmarks Sensex and Nifty ended at fresh lifetime highs on Monday, propelled by gains in Infosys amid positive domestic and global cues.

After rallying nearly 300 points to its record intra-day high of 41,899.63, the 30-share BSE index settled at a new closing peak of 41,859.69, up 259.97 points, or 0.62 per cent.

Likewise, the broader Nifty scaled its lifetime (intra-day) high of 12,337.75, before ending at 72.75 points, or 0.59 per cent higher at 12,329.55 -- its new closing peak.

Both indices were driven by Infosys, that rallied 4.76 per cent, after the IT services major on Friday reported a 23.7 per cent rise in consolidated net profit at Rs 4,466 crore for the December quarter.

IndusInd Bank, Bharti Airtel, HUL, M&M, Tata Steel, PowerGrid and Tech Mahindra too ended with gains on the BSE.

On the other hand, TCS, SBI, Bajaj Auto, ICICI Bank, RIL, Axis Bank and Nestle India finished in the red.

According to traders, besides positive quarterly numbers from Infosys, positive domestic macro data and firm global cues boosted market mood here.

After contracting for three months in a row, the Index of Industrial Production (IIP) recorded a growth of 1.8 per cent in November, mainly on account of improvement in the manufacturing sector, as per government data released after market hours on Friday.

Further, the markets opened the week on a positive note following the upbeat trend in Asian markets as the the long-awaited phase one trade deal between the US and China is set to be signed this week, experts said.

Bourses in Shanghai, Hong Kong and Seoul ended significantly higher, while European markets started on a positive note.

Brent crude oil futures rose 0.37 per cent to $65.22 per barrel. The rupee appreciated 12 paise to 70.82 per US dollar (intra-day). _ PTI

China's yuan leads rally ahead of US trade deal

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China's yuan led a rally in trade-sensitive currencies on Monday and the Australian dollar recovered some recent losses as the imminent signing of a preliminary US-China trade deal boosted sentiment.

The US-China Phase 1 agreement, due to be signed at the White House on Wednesday, marks the first step towards ending a damaging 18-month trade dispute between the world's two largest economies.

The turnaround in the yuan, which was at multi-year lows in September, reflects investors' growing confidence that the worst of the trade war has passed. Click here to read in full the global forex markets report .

Tata Power Solar to build 250MW project for NTPC

Tata Power Solar Systems Ltd is to develop a 250MW solar project for NTPC. The project will be developed under the Centre’s Central Public Sector Undertaking (CPSU) scheme that mandates using domestically manufactured cells and modules for the project.

“The total value of the order is ₹1,505 crore and the completion period is 20 months. With this order, the order book of Tata Power Solar stands at approximately ₹7,600 crore, including external and internal orders,” a company statement said. Click here to read in full the report on Tata Power Solar .

European shares flat as focus turns to Sino-US trade deal

European shares started Monday on a subdued note as markets awaited the signing of a Sino-US trade deal later in the week, while technology stocks rose on a clutch of brokerage upgrades and price-target bumps.

The benchmark European STOXX 600 index hit another record last week after the easing of US-Iran tensions. Click here to read in full the European markets report.

Top gainers and losers on the Sensex

Oil steady as fears over US-Iran conflict ease

Oil prices held steady on Monday as fears of conflict between the US and Iran eased, with investors shifting their focus to this week's scheduled signing of an initial US-China trade deal, which could boost economic growth and demand.

Brent crude was up 1 cent at $64.99 per barrel at 0737 GMT, while West Texas Intermediate (WTI) crude was up 5 cents at $59.09 a barrel from the previous session.

Oil prices surged to their highest in almost four months after a US drone strike killed an Iranian commander and Iran retaliated with missiles launched against US bases in Iraq. But they slumped again as Washington and Tehran retreated from the brink of direct conflict. Click here to read in full the oil markets report .

Sensex, Nifty come off highs

The benchmark indices, the BSE Sensex and the NSE Nifty, came off their morning highs in the afternoon session on Monday.

The Sensex was at 41,801, up 201 points or 0.48 per cent firmer. The Nifty was up 58 points or 0.48 per cent at 12,315.

The top gainers on the Sensex were Infosys, which held gains of 4.54 per cent, followed by Hindustan Unilever, Tata Steel, Tech Mahindra and Mahindra & Mahindra (which rose between 1.10-1.60 per cent).

The laggards were led by TCS that dropped nearly 1 per cent, followed by HDFC, Bajaj Auto, SBI and Nestle Ind.

Gold slips as Asian equities rise ahead of Sino-US trade deal

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Gold prices fell on Monday as Asian stocks touched 19-month highs ahead of the planned signing of an interim trade deal between Washington and Beijing, which has encouraged investors to plough back into riskier assets. Spot gold dipped 0.5 per cent to $1,553.93 per ounce by 0630 GMT.

US gold futures fell 0.3 per cent to $1,555.80. Asian shares rose to new 19-month highs ahead of the Phase 1 deal due to be signed at the White House on Wednesday.  Click here to read in full the gold markets report.

Nifty call: Go long above 12,350 with stop-loss at 12,300

The Indian benchmarks are in the green following the positive cues from the Asian market. The Nifty spot and the Sensex spot index have gained by 0.65 per cent each so far today. Major Asian indices, including the Nikkei and Hang Seng, have risen by 0.45 per cent and 0.85 per cent respectively. Click here to read in full the Nifty call report.

Asian stocks hit 19-month highs ahead of signing of US-China trade deal

Asian shares shook off a quiet start to reach new 19-month highs on Monday ahead of the expected signing of a Phase 1 China-US trade deal, although markets have yet to see the details of the agreement.

European bourses looked set to take a more sceptical view of the deal, with pan-region Euro Stoxx 50 futures down 0.05 per cent at 3,778, German DAX futures up just 0.01 per cent at 13,493, and FTSE futures eking out a 0.02 per cent rise to 7,531. Click here to read in full the Asian markets report .

Despite strong Q3 show, why is D-Mart still a sell for analysts?

Avenue Supermarts (D-Mart) on Saturday reported a strong set of financial numbers for the third quarter ended December 2019. Yet, analysts said the stock is overvalued and may head for a correction.

The stock of D-Mart, after opening strongly at ₹1,921 and surging further to ₹1947, is currently hovering around ₹1,897 (10 am), still a gain of 1 per cent, in early trade on Monday. Click here to read in full why the D-Mart stock is still a sell for analysts .

Sensex, Nifty hold firm

The benchmark indices, the Sensex and Nifty, held firm at mid-session on Monday.

The Sensex was trading at 41,874, a gain of 274 points or 0.66 per cent, while the Nifty was trading at 12,326, up 69 points or 0.57 per cent.

The top gainers on the Sensex were Infosys (up 4.74 per cent), M&M, Hindustan Unilever, Tech Mahindra and Ultra Cement. The laggards were led by TCS (which was down 0.45 per cent), SBI, HDFC, Nestle Industries and Maruti.

Among the BSE sectoral indices, the IT index was the top gainer, riding up 1.91 per cent, followed by technology (1.63 per cent), realty (1.47 per cent) and FMCG (0.89 per cent). The auto index was the only sectoral index in the red.

Steel prices set to rise by Rs 2,000 a tonne in Feb

Steel prices are set to increase by about Rs 2,000 a tonne next month on the back of strong demand and a rise in raw material prices. This would be the fourth consecutive month that steel prices have increased. Click here to read in full the steel prices report .

Anand Mahindra to set aside ₹1 cr to invest in micro-enterprises; Twitterati hail decision

Anand Mahindra on Sunday offered to invest ₹1 crore in promoting micro-entrepreneurs. He was praised by netizens after sharing a tweet on promoting micro-entrepreneurship in India. Click here to read more on Anand Mahindra's plan to invest in micro-enterprises .

Infosys drives Sensex higher after earnings beat estimates

The S&P BSE Sensex advanced 0.6% to 41,839.52 to a new record in Monday morning trade in Mumbai. The NSE Nifty 50 Index also climbed 0.6%. Infosys Ltd was the biggest boost to both gauges. Read more on Infosys lifts markets following results .

Fitch assigns ReNew Power’s proposed US dollar senior secured notes ‘BB-’ rating

Fitch Ratings on Monday said it has assigned clean energy firm ReNew Power’s proposed US dollar senior secured notes a rating of ‘BB-’ with a stable outlook.

According to Fitch Ratings, ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time. Click here to read more on Fitch rating for ReNew Power's proposed dollar notes.

Dollar firms as China-US trade deal day draws near

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The dollar began the week supported by optimism on the Sino-US trade front, while the pound wobbled lower after weekend hints at an interest rate cut from a Bank of England policymaker.

A US-China trade deal is due to be signed at the White House on Wednesday, though talks on a phase two package are likely to drag on for months. Click here to read in full the global forex report .

Sensex, Nifty on a firm wicket

The benchmark indices the Sensex and the Nifty surged 0.60 per cent in the morning session on Monday.

The Sensex was quoting at 41,859, up 260 points or 0.63 per cent, while the Nifty rose to 12,320, up 63 points or 0.52 per cent.

According to a PTI report, the Sensex and Nifty hit record intra-day highs in early trade, tracking gains in Infosys amid positive domestic and global cues.

The Sensex had rallied 293.69 points to a record peak of 41,893.41, before edging lower. Similarly, the broader NSE Nifty scaled a high of 12,337.75.

Infosys was the top gainer, rising over 3 per cent, after the IT services major on Friday reported a 23.7 per cent rise in consolidated net profit at Rs 4,466 crore for the December quarter.

Sun Pharma, ITC, HCL Tech, Tata Steel, ICICI Bank and Kotak Bank were also trading on a positive note. On the other hand, TCS, Maruti and HDFC were in the red.

In the previous session, Sensex ended 147.37 points, or 0.36 per cent, higher at 41,599.72 and the Nifty settled 40.90 points, or 0.33 per cent, higher at 12,256.80.

Meanwhile, on a net basis, foreign institutional investors bought equities worth Rs 578.28 crore, while domestic institutional investors purchased shares worth Rs 251.74 crore on Friday, data available with stock exchanges showed.

According to traders, besides a positive quarterly number from Infosys, positive domestic macro data, firm global cues and foreign fund inflow too boosted the market mood here.

Having contracted for three months in a row, the Index of Industrial Production (IIP) recorded a growth of 1.8 per cent in November mainly on account of an improvement in the manufacturing sector, said government data on Friday.

Investors are also awaiting inflation numbers to be released later in the day.

On the global front, with US-Iran tensions cooling off, the market focus has shifted to the upcoming US-China trade deal signing, traders said.

Bourses in Hong Kong, Shanghai and Seoul were trading on a positive note in their early sessions. Brent crude futures slipped 0.09 per cent to $64.92 per barrel.

Re spurts 12 paise in early trade

The rupee appreciated by 12 paise to 70.82 against the US dollar in early trade on Monday tracking positive global cues and higher opening in domestic equities.

Forex traders said easing crude prices, weakening of the American currency and foreign fund inflows strengthened investor sentiments.

At the interbank foreign exchange the rupee opened at 70.82 against the US dollar, registering a rise of 12 paise over its previous close. On Friday, rupee had settled for the day at 70.94 against the US dollar. Click here to read in full the rupee report .

Daily Rupee call: Buy rupee with tight stop-loss

The rupee (INR) gained sharply last week, appreciating from 72.02 to 70.94 against the dollar (USD). The Indian currency has been one of the top performing currencies so far this year, gaining 0.62 per cent. Despite the dollar rally last week, the one-year forward spread of the USDINR currency pair seems to have stabilised around 300 points, aiding the rupee. Click here to read in full the Daily rupee call

Oil dips on easing US-Iran tensions

Oil prices edged down on Monday as fears of conflict between the United States and Iran eased, although the decline was checked by the planned signing of an initial US-China trade deal this week, which could boost demand.

Brent crude was down 13 cents, or 0.2 per cent, at $64.85 per barrel at 0120 GMT. WTI was also down 9 cents, or 0.2 per cent, at $58.95 a barrel. Click here to read in full the crude oil report .

Asian stocks flatline, wait for US-China trade deal

Asian shares paused near 19-month peaks on Monday ahead of the expected signing on a Sino-US trade deal, though talks on a phase two package are likely to drag on for months.

MSCI's broadest index of Asia-Pacific shares outside Japan barely budged, having hit the highest since mid-2018 last week.

Japan's Nikkei was closed for a holiday. It fell sharply early last week when Iran attacked bases hosting US military in Iraq, only to rally almost a thousand points when the two countries stepped back from hostilities. Click here to read in full the Asian markets report .

Short strangle may pay on Coal India

The long-term outlook for Coal India (Rs 204.5) remains negative. The long term outlook will change to positive only if the stock breaks above Rs 277. The stock finds immediate resistance at the Rs 220 and Rs 236 levels. It finds strong support at Rs 187; a close below that level could trigger a fresh slide in the stock. We expect the stock to move in a range of Rs 190-220, before taking a clear direction.

F&O pointers: The Coal India January futures shed open interest positions on Friday, despite the stock posting handsome gains. Options, both call and put, saw open interest declining. This indicates that traders are not willing to carry over their positions, expecting a narrow range. Click here to read more on CIL share price movement .

Big Story | NRI investments in India: What, where, how

When it comes to Indians living abroad and their money matters in India, there is a veritable alphabet soup — NRI, OCI, PIO, NRE, NRO, FCNR (B), RFC, PIS and more.

Add to this, the regulations and restrictions under FEMA (Foreign Exchange Management Act) and the tight tax rules under the Income Tax Act, and it can be quite a task navigating the landscape.

We try to decode some key aspects and give broad pointers that could help make your investment journey easier. Click here to read in full the Big Story on NRI investments .

Opening bell

The Sensex and Nifty opened the week on a firm note.

The Sensex jumped up 171 points or 0.41 per cent to quote at 41,771 at the open on Monday.

The Nifty opened at 12,303, up 46 points or 0.38 per cent.

Index Outlook: Sensex tests key near-term resistance

It was a volatile week for the domestic equity indices, the Sensex and the Nifty. After an initial decline tracking the weak global markets due to geopolitical tension, the benchmark indices staged a smart recovery in the latter part of the week following other Asian markets. Commodities such as gold and crude oil were also choppy.

Stocks could stay edgy this week on fears that the geopolitical tensions could escalate. Third- quarter earnings of corporates could influence the movement in specific stocks.

Nifty 50 (12,256.8)

The index plunged strongly in the initial part of last week, but taking support at around 12,000, it bounced back, positively recouping the initial loss. The Nifty recorded a new high at 12,311 and closed well above its 21- and 50-day moving averages. However, the index tests a crucial resistance at 12,300 levels.

An emphatic break above the current resistance will strengthen the short-term uptrend and push the index higher to 12,400 and 12,500 levels in the ensuing weeks. Click here to read in full the Index Outlook .

Weekly Trading Guide for week beginning January 13, 2020

SBI (₹332.2)

The stock of SBI underwent considerable volatility and broke below the lower boundary of the range between ₹325 and ₹340. The price also slipped below both the 21- and 50- day moving averages. But it rebounded sharply, recouping its loss. It closed the week above the important level of ₹325, thereby moving back into the range. Looking at the weekly chart, one can observe that the stock witnesses good buying below ₹325, indicating reasonable demand for it as the price softens. Notably, ₹325 coincides with the 23.6 per cent Fibonacci retracement level of the previous trend, making it an important level. Since the stock has rallied back above ₹325, traders can approach it with a bullish bias. It is recommended to initiate fresh long positions and place the stop-loss at ₹320. On the upside, beyond the upper boundary of the range at ₹340, the subsequent resistance is at ₹351, its previous high. A break above that level would confirm a higher peak in the daily chart, which could attract more buyers, resulting in the stock appreciating to ₹362. The supports are at ₹325 and ₹315.

ITC (₹238)

After briefly trading below the critical support of ₹235, the stock of ITC recovered and managed to close above it. The support at ₹235 is important for the stock because it has bounced thrice from that level since August 2019. And because the overall trend is biased towards bearish, a break below ₹235 could confirm a new downtrend. Though the moving average convergence divergence indicator in the daily chart is flat, the daily relative strength index is showing a fresh uptick. However, the price continues to remain below both 21- and 50-day moving averages. For the stock to establish a sustainable rally, it should breach the resistance at ₹241, where the 23.6 per cent Fibonacci retracement of the previous bear trend lies. But since the risk-reward ratio is favourable for long positions at current levels, traders are recommended to initiate fresh long positions on dips and place the stop-loss at ₹233. Once the price breaks out of resistance at ₹241, move the stop-loss on the upside with a gap of 1.5 times daily Average True Range. Above ₹241, the stock could appreciate to ₹245.

Infosys (₹738.1)

Though the stock faced downward pressure, the price action continues to exhibit bullish bias. After declining during the first part of the past week, the stock took support on the 50-day moving average at ₹710 levels and bounced back, thereby forming a higher low in the daily chart. With the weekly close at ₹738.1, the price has moved back above the important level of ₹725 and the 21-day moving average. Despite the volatility, there was not much change observed in the moving average convergence divergence indicator in the daily chart. But following the rally during the latter part of the week, the daily relative strength index shows a fresh uptick and has crossed above the midpoint level of 50 — an indication of good bullish momentum. From the perspective of trading, one can make use of the declines to initiate fresh long positions. The stop-loss can be placed at ₹720. The nearest target can be at the resistance level of ₹760. The 61.8 per cent Fibonacci retracement coincides with that price, making it an important level. On further appreciation, the stock can advance to ₹800.

RIL (₹1,547.6)

The stock of Reliance Industries has been consolidating for the past three weeks. The price is traversing across the key level at ₹1,534, but importantly, the stock has closed above that level for the past three weeks. Though the equity market witnessed downward pressure during last week, the price of RIL stayed flat, showing resilience — a bullish indication. Also, the stock has moved above the 50-day moving average. The daily relative strength index is flat but has gone above the midpoint level of 50. On the other hand, the moving average convergence divergence indicator in the daily chart is showing signs of recovery. The overall trend is bullish, and the uptrend is not under threat until the price stays above the support band between ₹1,500 and ₹1,510. Traders are thus recommended to buy the stock on declines with a dynamic stop-loss. While the initial stop-loss can be placed at ₹1,495, shift it upwards with a gap of 1.5 times the daily Average True Range as the stock appreciates. The stock will face a hurdle at ₹1,575. Above that level, it can retest ₹1,617.5, its lifetime high.

Tata Steel (₹486.2)

Tata Steel is one of the stocks that showed restraint when the equity market witnessed selling pressure early last week. This means that the prevailing uptrend has more steam and the stock can rally from the current levels. While the price remains above both the 21- and 50-day moving averages, there are certain indicators that the bull trend is not without hurdles. The daily relative strength index is at the over-bought levels and the moving average convergence divergence indicator is flat, despite bullishness exhibited by price action. And, as shown by the falling Average True Range, the trading range has been narrowing for the past few trading sessions, which can be an indication of loss in bullish momentum. Hence, fresh long positions should be accompanied by a dynamic stop-loss. Traders can initiate fresh long positions on dips, with the initial stop-loss at ₹465. As the stock rises, keep moving the stop-loss on the upside with a gap of 1.5 times the daily Average True Range. The potential targets are at ₹500 and ₹515.

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