Sensex, Nifty scale fresh lifetime peaks for second straight session

Closing bell

Market benchmark indices, Sensex and Nifty, scaled fresh record levels on Tuesday, led by gains in index-heavyweights HDFC, ITC, Axis Bank and TCS.

In a choppy trading session, the 30-share BSE Sensex hit a life-time high of 41,994.26 in day trade. It finally settled 92.94 points or 0.22 per cent higher at 41,952.63 - its all-time closing high.

The broader Nifty scaled its lifetime high (intra-day) of 12,374.25, before ending 32.75 points, or 0.27 per cent, higher at 12,362.30, which is a record closing level.

Hero MotoCorp was the top gainer in the Sensex pack, rallying 2.15 per cent, followed by ITC, M&M, Tech Mahindra, Nestle, Axis Bank, NTPC, HDFC and TCS.

On the other hand, IndusInd Bank, RIL, Kotak Bank, SBI, L&T, ONGC and ICICI Bank fell up to 3.85 per cent.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a mixed note. Exchanges in Europe were off to a tepid start. Brent crude oil futures rose 0.16 per cent to $64.30 per barrel.

The rupee was trading flat at 70.85 per US dollar (intra-day). - PTI

Yen slips, yuan climbs after Washington drops China FX manipulator label

File Photo

The Japanese yen plumbed eight-month lows while China's yuan climbed to its highest level since July on Tuesday as the US Treasury Department reversed its decision in August to designate China as a currency manipulator.

The announcement came as Chinese Vice-Premier Liu He arrived in Washington ahead of Wednesday's signing with US President Donald Trump of a preliminary trade agreement aimed at easing tensions between the two countries.

“Washington's decision to lift its designation of currency manipulator on China has added to the positive mood that has been already in place ahead of the signing of the trade deal,” said Minori Uchida, chief currency strategist at MUFG Bank.

People familiar with the negotiations said that although the manipulator designation had no real consequences for Beijing, its removal was an important symbol of goodwill for Chinese officials. Click here to read more on the global forex markets.

Oil prices steady, trade deal and US inventories eyed

Oil prices steadied on Tuesday, after recent declines, as investors focused on the signing of a preliminary trade deal between the US and China, the world's top oil consumers, and on expectations of a drawdown in US stockpiles.

However, price gains were capped by receding West Asian Middle East tensions, with both Tehran and Washington desisting from any further escalation after this month's clashes. Click here to read in full the global oil markets report.

European shares inch lower ahead of Sino-US trade deal

The pan-European STOXX 600 index fell 0.2 per cent by 0812 GMT in its third straight day of declines. File Photo

European shares treaded water on Tuesday, as investors awaited the signing of an initial trade truce to end a prolonged US-China tariff dispute, with attention also turning to the fourth-quarter corporate earnings season.

The pan-European STOXX 600 index fell 0.2 per cent by 0812 GMT in its third straight day of declines.

The Phase 1 Sino-US trade deal, due to be signed in Washington on Wednesday, marks the first step in winding down the prolonged and damaging trade war. Click here to read the European markets report in full .

Benchmark indices edge up

The Sensex and Nifty edged up in the afternoon session on Tuesday. The Sensex gained 33 points to trade at 41,893, while the Nifty rose 12 points to trade at 12,341.

The top gainers on the Sensex were ITC, HeroMotoCorp, Axis Bank, Nestle India, and NTPC, while the laggards were IndusInd Bank, SBI, Reliance, Kotak Bank and Larsen & Toubro.

Among the sectoral indices, the FMCG index gained 1.25 per cent. The other notable gainers were metal (0.69 per cent), consumer goods (0.66 per cent) and IT (0.44 per cent).

Bajaj Auto launches Chetak electric scooter; bookings start from January 15

Rajiv Bajaj, MD, Bajaj Auto, along with Rakesh Sharma, Executive Director, launch the EV Chetak in Mumbai. – Photo: Paul Noronha

Bajaj Auto on Tuesday launched its much-awaited Chetak electric scooter and said the bookings will start from January 15.

The deliveries of Chetak, which comes at a starting price of Rs 1 lakh, will commence from February end, the company said. The electric variant of the iconic Chetak will initially be available in Pune and Bengaluru, it said. Click here to read more on the launch of the Chetak electric scooter .

Michael Debabrata Patra appointed as RBI Deputy Governor

Michael Debabrata Patra has been appointed as a Deputy Governor of the Reserve Bank of India (File photo)

The Appointments Committee of the Cabinet has approved the appointment of Michael Debabrata Patra as a Deputy Governor of the Reserve Bank of India (RBI) for a three-year tenure. Patra has replaced Viral Acharya, who quit the post last July.

Prior to this elevation, he was an Executive Director at the RBI, overseeing four departments — Department of Economic and Policy Research, Department of Statistics and Information Management, Monetary Policy Department and New Frontiers Unit. He is also part of the rate-setting six-member Monetary Policy Committee (MPC). Click here to read more on the appointment of Michael Debabrata Patra as a Deputy Governor of RBI .

Yuan, stocks rally ahead of imminent US-China deal signing

Asian shares rose, China's yuan jumped and safe-harbour assets slipped on Tuesday, amid signs of goodwill between China and the US, as the world's two biggest economies prepared to sign a truce in their bitter trade war.

The US Treasury Department on Monday said China should no longer be designated a currency manipulator - a label it applied as the yuan dropped in August.

Beijing, meanwhile, allowed the tightly managed currency to climb to its highest point since July, after fixing the yuan's trading-band midpoint at its firmest in more than five months. Click here to read in full the Asian markets report .

Nifty call: Tread with caution while index trades at crucial trend deciding levels

The Nifty index has been trading flat so far today; so has the Sensex. The Asian indices seem to be giving mixed cues as the Nikkei is up by 0.75 per cent, whereas the Hang Seng is down by 0.7 per cent. Click here to read in full the Nifty call report .

Gold dips to near 2-week low as risk-on mode dominates

Spot gold dipped 0.6 per cent to $1,538.84 per ounce by 0459 GMT. Earlier in the day, prices touched their lowest since January 3 at $1,535.75. US gold futures fell 0.7 per cent to $1,539.70.

Asian shares rallied amid signs of goodwill between the world's two top economies as they prepared to sign a truce in their 18-month-long tariff dispute that has upended the global economy.  Click here to read in full the gold markets report .

Is Bengal staring at a microfinance crisis triggered by Bandhan Bank?

After the chit-fund boom, it is the golden era of microfinance in West Bengal, with loans being showered on the underprivileged like never before. According to a Macquarie Research advisory issued in September, the market is “overheated”, with West Bengal ranking first in the country in terms of microfinance portfolio.

However, there is slight difference of opinion when it comes to the ranking. According to Microfinance Institutions Network (MFIN), the State is ranked second with a portfolio of nearly ₹29,000 crore, slightly below Tamil Nadu. Click here to read in full the story on Bengal's microfinance sector.

Bonds yields surge on higher inflation, stocks largely flat

Indian bond yields rose sharply on Tuesday, while shares were little changed as hopes of a rate cut in February dimmed after data showed a higher-than-expected surge in inflation.

India's annual retail inflation rose to 7.35 per cent in December, its highest level in more than five years and well above the Reuters poll of a 6.2 per cent rise.

The benchmark 10-year bond yield was up 7 basis points at 6.68 per cent by 10.00 am IST, after rising to 6.7 per cent earlier and compared with its Monday's close of 6.60 per cent. Click here to read in full the report on bond yields .

IL&FS gets binding offer for Environmental & Infrastructure Services

IL&FS has received a binding offer from a prospective buyer for acquiring its stake in IL&FS Environmental & Infrastructure Services Ltd (IEISL).

The buyer for this transaction will be selected through the Swiss Challenge Method. IEISL is into waste management and has the capacity to handle total waste of 14,500 TPD.

These are ongoing efforts to reduce the Rs 90,0000-crore debt that IL&FS owes. At its recently concluded 32nd AGM, Uday Kotak assured shareholders that around Rs 45,000 crore can be recovered under very complex circumstances.  - Our Bureau

Yen slips, yuan climbs after Washington drops China FX manipulator label

File Photo

The yen plumbed an eight-month low while the yuan climbed to its highest level since July on Tuesday, after the US Treasury Department reversed its decision in August to designate China as a currency manipulator.

The announcement came as a high-level Chinese delegation arrived in Washington ahead of Wednesday's signing of a trade agreement aimed at easing tensions between the two countries.

The dollar hit an eight-month high of 109.95 yen in US trade on Monday and last stood at 109.93 yen. The Japanese currency has weakened about 1.3% so far this year. Click here to read in full the global forex markets report .

Oil prices rise ahead of US-China trade deal

Oil prices edged higher on Tuesday as investors focused on the signing of a preliminary trade deal between the United States and China, the world's top oil consumers, and on expectations of a drawdown in US crude oil inventories.

However, price gains were capped by receding Middle East tensions, with both Tehran and Washington desisting from any further escalation after this month's clashes.

Brent crude was up 16 cents, or 0.3per cent, at $64.36 per barrel by 0301 GMT after falling 1per cent on Monday. US West Texas Intermediate crude futures were up 13 cents, or 0.2per cent, at $58.21 a barrel. Click here to read in full the oil markets report .

Asia stocks scale heights

Asian shares hit a 7-month high, China's yuan jumped and safe-harbour assets slipped on Tuesday, amid signs of goodwill between China and the United States, as the world's two biggest economies prepared to sign a truce in their trade war.

The US Treasury Department on Monday said China should no longer be designated a currency manipulator - a label it applied as the yuan dropped in August. Click here to read in full the Asian markets report .

Rupee rises 8 paise to 70.78 against dollar in early trade

The rupee appreciated by 8 paise to 70.78 against the US dollar in early trade on Tuesday as sign of easing tensions between the US and China strengthened investor sentiments. Click here to read in full the rupee report .

Sensex, Nifty edge up

The Sensex and Nifty were weakly positive in early trade on Tuesday.

The Sensex was at 41,874, up 15 points. The Nifty was trading at 12,336, up 7 points.

According to a PTI report, the Sensex and Nifty opened on a volatile note, tracking losses in banking stocks as weak inflation numbers weighed on domestic investor sentiment.

HDFC twins, ICICI Bank, HUL, L&T, Ultratech Cement and ONGC were the among the top losers in the Sensex pack, shedding up to 0.63 per cent. On the other hand, Tata Steel, HCL Tech, M&M, TCS and Asian Paints rose up to 1.04 per cent.

In the previous session, Sensex settled 259.97 points, or 0.62 per cent, up at its new closing peak of 41,859.69. Likewise, the Nifty ended 72.75 points or 0.59 per cent higher at 12,329.55 -- its fresh closing record.

Meanwhile, on a net basis, foreign institutional investors bought equities worth Rs 68.24 crore, and domestic institutional investors purchased shares worth Rs 47.17 crore on Monday, data available with stock exchanges showed.

According to traders, the market mood turned bearish after government data on Monday showed that retail inflation rose to a five-and-a-half year high of 7.35 per cent in December 2019, surpassing the RBI’s comfort level, due mainly to spiralling prices of vegetables, as onions were selling costlier.

A spike in headline inflation is an “unwanted complication” in a slowing economy and will prevent the Reserve Bank from cutting rates, analysts said, warning of the “spectre of stagflation” that India risks getting into.

On the global front, bourses in Hong Kong, Shanghai and Seoul were trading on a mixed note in their early sessions.

Global oil benchmark, Brent crude futures, rose 0.17 per cent to $64.31 per barrel. 

Meanwhile, the rupee appreciated 4 paise to 70.82 against the US dollar in morning session. 

Daily rupee call: Short rupee on rallies with tight stop-loss

The rupee (INR) edged higher against the dollar (USD) on Monday. After opening higher at 70.79 against its previous close of 70.94, the Indian currency closed at 70.85 yesterday. It managed to trade above the key support at 71. 

On a broader view, the exchange rate has been trading in the 70.5 and 72.25 range since September last year. Thus, if the rupee advances from the current levels, it will face a significant hurdle at 70.5. On the other hand, if the domestic currency weakens, 71.2 will act as a support below 71. Click here to read in full the daily rupee call report.

'Rate of retail inflation to breach 8 per cent in January'

Retail inflation is likely to breach 8 per cent in January and then start bottoming out.

Bad news on the retail inflation front is likely to continue at least for one more month as SBI's research has estimated that the rate of retail inflation is likely to breach 8 per cent in January.

It has also questioned the data methodology of the Central Statistical Organization (CSO), the Government organisation responsible for preparing and disseminating retail inflation data. This rate is represented by the Consumer Price Index (CPI) and released every month. Click here to read in full the report on likely retail inflation in January .

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened Tuesday's session in the red.

The Sensex opened at 41,777, down 82 points or 0.20 per cent lower than its previous close.

The Nifty opened mildly lower at 12,320, down 8 points on its overnight close.

Day Trading Guide for January 14, 2019

₹1287 • HDFC Bank

₹773 • Infosys

₹239 • ITC

₹125 • ONGC

₹1543 • Reliance Ind.

₹330 • SBI

₹2191 • TCS

12362 • Nifty 50 Futures

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

Today's Pick: L&T Finance Holdings (₹126.7): Buy

Investors with a short-term perspective can buy the stock of L&T Finance Holdings at current levels. Strengthening the medium-term uptrend that has been in place from the 52-week low of ₹78.6 recorded in October last year, the stock gained almost 4 per cent with above average volume on Monday. Moreover, this rally has decisively breached a key resistance at ₹122 after a sideways consolidation phase. The stock had resumed its uptrend taking support at ₹115 last week, where the 200-DMA provided base. It trades well above the 50- and 200-DMAs. There has been an increase in daily volume over the past one week. Click here to read in full Today's Pick on L&T Finance Holdings.

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