Nifty ends December series below 10,800; Sensex up 157 points

27 Dec 2018

Market at Close: Equity benchmarks ended the session on a positive note, but off the high points. The Nifty ended December series below 10,800.

Some selling in banks, automobiles, metals and pharmaceuticals weighed on benchmarks, while the Nifty Midcap index ended with gains of over one third of a percent.

At the close of market hours, the Sensex was up 157.34 points or 0.44% at 35807.28, while the Nifty was higher by 49.90 points or 0.47% at 10779.80. The market breadth was narrow as 1313 shares advanced, against a decline of 1233 shares, while 181 shares were unchanged.

Adani Ports, Reliance Industries, Tech Mahindra and ONGC gained the most, while Airtel, Hero MotoCorp, and Tata Motors lost the most.

'161 IPOs garner $5.52 bn till November in 2018'

Indian stock exchanges ranked second globally in terms of number of initial public offerings (IPOs), raising $5.52 billion from 161 offerings till November this year, according to a report.

At the BSE and the National Stock Exchange, there were only two IPOs in fourth quarter of this calendar year, compared with nine and three in fourth quarter of 2017 and third quarter of 2018, respectively, said EY India IPO Trends: Q4 2018 report.

A similar trend was witnessed in the small and medium enterprise (SME) market. There were eight IPOs in fourth quarter of 2018, compared with 31 and 42 in fourth quarter of 2017 and third quarter of 2018, respectively, showing a drop of 74 percent and 81 percent, respectively, it said. Source: PTI

Buyback and Dividend

Selan Exploration Technology said the board of directors approved buyback of fully paid-up equity shares at a price not exceeding Rs 300 per share, for an aggregate amount of Rs 25 crore.

The board also declared an interim dividend of 50 percent (i.e. Rs 5 per share) for the financial year 2018-19.

Crude Under Pressure After Wednesday's Sharp Rally

Oil prices fell after soaring at least 7.9 percent in the previous session, as worries over a glut in crude supply and concerns over a faltering global economy pressured prices even as a stock market surge offered support.

Brent crude oil futures were down 1.27 percent, at $53.78 per barrel. They rose 7.9 percent to $54.47 a barrel the day before.

US West Texas Intermediate (WTI) crude futures fell 1 percent to $45.76 per barrel. They jumped 8.7 percent to $46.22 per barrel in the previous session.

Both crude benchmarks are down at least 37 percent from highs touched in October. Source: Reuters

Market Update

Benchmark indices continued to show uptrend in afternoon ahead of expiry of December derivative contracts, tracking sharp rally in global peers.

The 30-share BSE Sensex rose 270.68 points to 35,920.62 and the 50-share NSE Nifty gained 81.10 points at 10,811.

About 1,414 shares advanced against 940 declining shares on the BSE.

Container Corporation Jumps 4%

Container Corporation of India shares rallied 4 percent intraday after global brokerage house PhillipCapital has maintained buy call on the stock and sees a whopping 38 percent potential upside to Rs 900 levels.

The research house retained its buy call after the Indian railways offered hefty discount in haulage of empty containers and flat wagon movement.

"25 percent discount in rail haulage charge is positive for cost reduction & volume growth of the company, and with revised rates, haulage cost for empty container would decline from around 10 to Rs 7.50 per km," PhillipCapital said.

Drug Launch

Pharma major Dr Reddy's Laboratories launched Sevelamer Carbonate for oral suspension, in 0.8 g and 2.4 g packets, a therapeutic equivalent generic version of Renvela (sevelamer carbonate).

The Renvela brand and generic had US sales of approximately $101 million, according to IMS Health's MAT data for the most recent twelve months ending in October 2018.

India Eyes $100-bn FDI In Next Two Years

India will aim to receive USD 100 billion in foreign direct investments in the next two years and special industrial clusters are being created for countries like Japan, South Korea, China and Russia where their companies can invest and operate, Union Minister Suresh Prabhu said.

The commerce and industry minister said his ministry has also identified sectors and countries which holds huge potential for investments in India.

"I have given a target. USD 100 billion of FDI should come from different sectors into India. It will not happen in one year. We have identified companies, sectors and countries and now we are going for road shows to attract investors," Prabhu told PTI in an interview.

Market Update: Buying counters are buzzing on D-Street, with Sensex gaining over 300 points, while the Nifty is well above 10,800.

The Sensex is up 313.56 points or 0.88% at 35963.50, while the Nifty is higher by 86.40 points or 0.81% at 10816.30. The market breadth is positive as 1326 shares advanced, 573 shares, while 114 shares are unchanged.

Equirus Raises Price Target for Gujarat Gas

Gujarat Gas shares gained 2.6 percent in morning after Equirus Capital maintained buy call on the stock and raised price target to Rs 774 from Rs 718 earlier, implying 16 percent potential upside from December 26's levels.

The research house the gas distribution company has always been expensive to peers despite poor & volatile earnings.

It has raised EPS estimate by 6 percent for FY20.

Rollover Activity

Rollover activity in the Nifty continued to remain higher on the back of significant fresh additions in the mid-month series, ICICI Securities said.

In the last session, mid-month futures added almost 6.8 million shares against closure of 3.8 million shares amid flat roll spread near 43 points in volatile trade. With 11 million shares still left in the current series, volatility is expected to remain high towards settlement, according to the research house.

On the other hand, Nifty December series open interest (OI) is relatively high indicating fresh OI accumulation in the next series. However, among stock specific, most sectors are witnessing high rollover into the next series.

Market Update

Benchmark indices continued to trade higher in morning, tracking year-end rally in global peers. The 30-share BSE Sensex gained 261.69 points at 35,911.63 and the Nifty50 climbed 70.50 points to 10,800.40.

More than two shares advanced for every share falling on the BSE.

Reliance Industries, Infosys, TCS, ITC, IndusInd Bank, ICICI Bank and HUL were leading contributors to Nifty's gains.

L&T Construction Wins Orders Valued Rs 2,357 Crore

The construction arm of L&T has won orders worth Rs 2,357 crore on Thursday.

Water and effluent treatment and transportation infrastructure business has secured orders worth Rs 1,281 crore while water and effluent treatment business has bagged orders worth Rs 1,076 crore.

Rollover Analysis Ahead of F&O Expiry

ICICI Securities said high rollover activity has been seen across sectors with Nifty rolls near 61.27 percent, higher than the 3-month average of 52.33 percent marketwide rolls at 66.59 percent, higher than the 3-month average of 62.87 percent.

Sectorally, cement, media & FMCG sectors are seeing high rollover of positions while capital goods, infra and oil & gas are seeing low rolls into the next series, it added.

Among stocks, the research house said high rollover was seen in PVR (88 percent), Adani Power (81 percent), Ambuja Cement (81 percent), Nestlé (80 percent) and United Breweries (79 percent).

SUN PHARMA RISES: Shares of Sun Pharmaceutical Industries rose over 2 percent intraday on December 27 after its unit DUSA Pharmaceuticals got injunctive relief in a US patent infringement case.

The stock gained as much as 2.4 percent, quoting at Rs 424 on the BSE.

A US district court prohibited Biofrontera and other defendants from using DUSA's confidential and proprietary trade secret information.

Market opens: It is a solid start for equities on Thursday morning, tracking global cues. The Nifty hit 10,800, while the Sensex has also risen around 300 points.

Among sectors, all of them are in the green, with maximum gains visible among banks, consumption, IT, and metals, among others.

The Sensex is up 289.36 points or 0.81% at 35939.30, while the Nifty is higher by 84.60 points or 0.79% at 10814.50. The market breadth was positive as 357 shares advanced, against a decline of 78 shares, while 17 shares were unchanged.

Yes Bank, Sun Pharma, and Indiabulls Housing gained the most, while Power Grid, Asian Paints, HPCL and BPCL have lost the most.

Market at pre-open: Equity benchmarks have had a good start in pre-opening trade. The Nifty is near 10,800.

The Sensex is up 245.45 points or 0.69% at 35895.39, and the Nifty up 50.10 points or 0.47% at 10780.00.

The rupee has opened at 70.20 per US dollar against a previous close of 70.07 per dollar.

ASIA UPDATE : Asian shares on Thursday latched on to a dramatic surge on Wall Street as markets, battered by a recent drum roll of deepening political and economic gloom, cheered upbeat US data and the Trump administration’s effort to shore up investor confidence.

In a buying frenzy that was as spectacular as the recent rout, US stocks soared with the Dow Jones Industrial Average rocketing more than 1,000 points for the first time on Wednesday.

That helped push MSCI’s broadest index of Asia-Pacific shares outside Japan up about 0.9 percent and away from eight-week lows.

US Markets Update : The Dow Jones Industrial Average surged more than 1,000 points for the first time on Wednesday, leading a broad Wall Street rebound after a report that holiday sales were the strongest in years helped mollify concerns about the health of the economy.

Following Wall Street’s worst-ever Christmas Eve drop in the previous session, the advance was also fuelled by investors’ reversing bets against a wide range of stocks. By the close, the Dow, S&P 500 and Nasdaq had notched their largest daily percentage gains in nearly a decade.

In a dramatic session that also saw the benchmark S&P 500 come within a whisker of dropping into bear market territory, oil prices surged, boosting sentiment for risk assets such as stocks and underpinning a 6.2 percent gain for energy shares.