Sensex ends with gains of over 130 points, Nifty above 10,950; Indiabulls Housing up 8%
19 December 2018
Market at Close: Bulls continued their momentum on Wednesday as fall in crude oil prices spurred the rally in equities. The Nifty managed to end above 10,900-mark.
Among sectors, banks, automobiles, consumption, and infrastructure names were the big gainers, while the Nifty Midcap index rose over a percent. IT and pharma were the big losers.
Asian Paints, Axis Bank, Indiabulls Housing and Bajaj Finserv were the big gainers, while Sun Pharma, Infosys, and HCL Technologies lost the most.
At the close of market hours, the Sensex was up 137.25 points or 0.38% at 36484.33, and the Nifty up 52.80 points or 0.48% at 10961.50. The market breadth was positive as 1594 shares advanced, against a decline of 984 shares, while 147 shares were unchanged.
Gold Hits Over Five-Month Peak
Gold prices climbed to a more than five-month peak as a softer dollar supported the bullion while investors awaited cues on the rate hike trajectory of the US central bank from its two-day policy meeting.
US gold futures gained 0.12 percent to $1,255.10 per ounce.
The Federal Reserve is widely expected to raise interest rates for the fourth time this year, but weak stock markets and slowing global growth may prompt it to tone down its stance on monetary tightening.
Tata Teleservices Climbs 13% on NCLT Approval for Scheme of Arrangement
The National Company Law Tribunal has sanctioned the Scheme of Arrangement amongst Tata Teleservices (Maharashtra) and Bharti Airtel and their respective shareholders and creditors.
The scheme will be given effect to after and subject to fulfillment of certain conditions including Bharti obtaining the necessary approval of the NCLT, to the said Scheme and the approval of the Scheme by the Department of Telecommunication (DoT).
Indiabulls Real Estate Gains on Board Approval for Scheme Arrangement
Shares of Indiabulls Real Estate (IBREL) jumped 7 percent after the board approved a scheme of arrangement to facilitate divestment of assets in Chennai to the US-based Blackstone Group.
IBRE had earlier this year agreed to sell its commercial project One Indiabulls Park in Chennai to Blackstone Group.
After the demerger, the company's Chennai assets, currently owned by India Land and Properties Limited (ILPL), will be demerged into Indiabulls Infrastructure Limited (IIL).
DHFL To Sell Entire Stake In Asset Management JV to Pramerica
In the wake of a liquidity crunch in NBFC and HFC space, Dewan Housing Finance Corporation (DHFL) on December 18 said it will sell its entire stake in mutual fund business, DHFL Pramerica Asset Managers, to its joint venture partner Prudential Finance. The stock gained 5 percent.
DHFL currently holds 50 percent stake in DHFL Pramerica Asset Managers (DPAM), with 17.12 percent directly and 32.88 percent through subsidiary DHFL Advisory and Investments.
"Pramerica Financial and DHFL have entered into a binding term sheet to acquire DHFL's stake in their 50:50 joint venture asset management company, DHFL Pramerica Asset Managers," an official statement said.
Benchmark indices continued to trade higher in afternoon with the Sensex rising 156.32 points to 36,503.40 driven by banking & financials, auto and FMCG stocks.
The NSE Nifty50 climbed 60.50 points to 10,969.20 while the Nifty Midcap and Smallcap indices gained 1.3 percent each.
About two shares advanced for every share falling on the BSE.
Oil Prices Rebound After Sharp Fall
Oil prices rebounded after falling for the past three sessions with worries about oversupply and a slowing global economy keeping markets under pressure though sentiment may be shifting as falling equity markets seemed to stabilize.
West Texas Intermediate futures (WTI) climbed 0.67 percent, to $46.55 per barrel after plunging 7.3 percent the day before in a session when it touched its lowest since August 2017.
Global benchmark Brent crude futures rose 0.59 percent at $56.59 per barrel. It dropped 5.6 percent on Tuesday, at one point hitting a 14-month low. Source: Reuters
Benchmark indices continued to trade higher and are heading towards positive close for seventh consecutive session. After pricing in states poll outcome, the rally is largely led by fall in oil prices and appreciation in rupee.
The 30-share BSE Sensex rallied 121.18 points to 36,468.26 and the 50-share NSE Nifty gained 47.60 points at 10,956.30.
The broader markets outperformed frontliners with the Nifty Midcap and Smallcap indices rising a percent each.
US Federal Reserve to Announce its 2-day Meet Outcome
The US Federal Reserve is expected to raise interest rates on Wednesday, but may cut the number of hikes it anticipates next year and signal an earlier end to its monetary tightening in the face of financial market volatility and rising recession fears.
The central bank is due to announce its decision at 2 p.m. EST (1900 GMT) after its final two-day policy meeting of the year. Fed Chairman Jerome Powell is scheduled to hold a press conference half an hour later.
Investors widely expect the Fed will lift borrowing costs by a quarter of a percentage point to a range of between 2.25 percent and 2.50 percent. It would be the fourth rate hike of the year and the ninth since the central bank began its current tightening cycle in December 2015. Source: Reuters
Rupee Strong at 70 A Dollar
Continuing its rising spree, the rupee appreciated 37 paise to trade at 70.07 a dollar on persistent drop in crude prices amid fresh foreign fund inflows and sustained selling of the American currency by exporters and banks.
Besides, the dollar's weakness against some currencies overseas ahead of US Federal Reserve's policy meet outcome later in the day also supported the rupee.
Brent crude, an international benchmark, dropped 4.2 per cent lower to USD 57.07 per barrel Tuesday, a 14-month low.
The rupee Tuesday rallied by a whopping 112 paise, its best single-day gains in over five years, to settle at 70.44 against the US dollar as softening crude oil prices eased concerns over India's current account deficit expansion.
PhillipCapital Downgrades ABB India
ABB India shares fell nearly 4 percent in morning after global investment firm PhillipCapital downgraded the stock as it feels the sale of power grid business deal seems to have priced in.
The research house believes that ABB has moved in the right direction by exiting a project-heavy and low-growth and low-return business while focusing its energies on the evolving high-growth opportunities.
It believes that the positive of this deal and the change in return profile of ABB India are adequately captured in the current valuations. Hence, it downgraded ABB rating from neutral to sell with an unchanged target price of Rs 1,200, implying 14 percent potential downside.
Biocon In Focus
European Commission has approved Ogivri, a biosimilar Trastuzumab developed jointly by and Mylan.
The European Commission has granted marketing authorization for Ogivri to its partner Mylan.
The European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) previously issued a positive opinion recommending approval of Ogivri as a biosimilar to Roche's Herceptin (Trastuzumab) on October 18, 2018.
Ogivri is indicated for the treatment of patients with HER2 positive early breast cancer (EBC), metastatic breast cancer (MBC) and metastatic gastric cancer (MGC).
Strides Pharma To Receive $42 mn from Agila Transaction
Strides Pharma Science shares advanced 3 percent in morning as the company is going to receive $42 million from Agila transaction.
The company and its wholly owned subsidiary, Strides Pharma Asia Pte Ltd completed the sale to Mylan Laboratories Limited and Mylan Institutional Inc of Agila Specialties Private Limited and Agila Specialties Global Pte Limited respectively. The transaction was pursuant to Sale and Purchase Agreements effective as of February 27, 2013 on December 04, 2013.
Mylan made claims against the General Claims Escrow which included a third-party claim that was subject to resolution under international arbitration.
The claims in that arbitration were rejected in their entirety, said the company. Hence, Strides will receive around $42 million towards full and final release of the General Claims Escrow immediately.
Glenmark Announces Entry into Branded Dermatology Segment in US
The branded portfolio for the US market will be developed and commercialized by Glenmark Therapeutics Inc., USA, which is a wholly owned subsidiary of Glenmark Holding, SA. This represents an important step in the company’s long-term strategy to build a robust branded business in the US, alongside the company’s existing and successful generics business, the company said.
In support of this new business, Glenmark Therapeutics recently acquired the rights to seven branded dermatology products from Exeltis USA, Inc.
Minda Corporation Likely to Benefit from BSVI norms
Minda Corporation shares gained 3 percent in morning after research house Edelweiss Securities said Bharat Stage VI norms would benefit the company immensely.
It believes wiring harness opportunity for the company is expected to jump more than two-and-half-fold. Hence, it expects 18 percent consolidated EPS compounded annual growth rate over FY18–20.
The research house has maintained its buy call on the stock with a target price at Rs 151, implying 11 percent potential upside from Tuesday's closing levels.
Market opens: It is a good start to the market on Wednesday morning, with the Nifty surging past 10,900-mark.
The Sensex is up 94.64 points or 0.26% at 36441.72, while the Nifty is higher 30.50 points or 0.28% at 10939.20. The market breadth is positive as 378 shares advanced, against a decline of 68 shares, while 24 shares were unchanged.
Among sectors, automobiles, banks, energy and metal indices are trading in the green. Meanwhile, the Nifty IT index is down around half a percent due to appreciating rupee.
Shares of Yes Bank, Asian Paints, Indiabulls Housing and HPCL gained the most, while Hero MotoCorp, Power Grid, Infosys and Zee Entertainment are the top losers.
Market at pre-open: Equity benchmarks are upbeat on Wednesday morning.
The Sensex is up 79.04 points or 0.22% at 36426.12, and the Nifty up 31.80 points or 0.29% at 10940.50.
The Indian rupee has opened higher by 34 paise at 70.10 per US dollar.
Product approval in European Union: Biocon, in a filing to exchanges, has said that Ogivri, a biosimilar Trastuzumab has been approved in the European Union (EU). The biosimilar is jointly developed by Biocon and Mylan.
“The European Commission has granted Marketing Authorization for Ogivri to our partner Mylan. The European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP} previously issued a positive opinion recommending approval of Ogivri as a biosimilar to Roche's Herceptin® (Trastuzumab) on October 18,2018,” the company said in the statement.
Ogivri is indicated for the treatment of patients with HER2 positive early breast cancer (EBC), metastatic breast cancer (MBC) and metastatic gastric cancer (MGC}.