MARKET WRAP: Sensex gains for 4th day, up 163 pts; PSBs, pharma stocks jump

All that happened in markets today.

4:10 PM

MARKET COMMENT | Vinod Nair, Head of Research, Geojit Financial Services

Monetary policy action from the central bank on rates came on expected line while measures to spur growth in credit came as a surprise. Removal of CRR for loans made to specific sector and open market operations will support the economy with more credits at lower rates.. Inflation rate is forecast to subsequently reduce in the coming months and provide more room for RBI to cut interest rates as and when necessary.

4:02 PM

SECTOR WATCH | Top gainers and losers on the NSE

4:01 PM

MARKET AT CLOSE | Top gainers and losers on the S&P BSE Sensex

3:36 PM

CLOSING BELL

The S&P BSE Sensex gained 163 points or 0.4 per cent to settle at 41,306 while NSE's Nifty50 closed at 12,138, up 49 points or 0.4 per cent.

3:24 PM

NEWS ALERT | Lupin slips over 1%; Q3 net loss at Rs 835 crore

3:09 PM

NEWS ALERT | Sun Pharma logs profit of Rs 913 crore

- Cons revenue at Rs 8,155 crore

3:06 PM

MARKET CHECK | Top 5 gainers on the BSE at this hour

2:50 PM

BROKERAGE RADAR | Centrum Broking on HG Infra Engineering

Adjusted valuations at 6.7x/5.8x FY21/22E EPS are inexpensive considering HG's strong earnings growth outlook, low leverage and high return ratios. We initiate coverage with Buy rating and 12-month target price of Rs405, based on 10x FY22E EPS and Rs 45/share value of assets.

Key risks – delay in receipt of Appointed Dates for existing projects, prolonged slump in highway ordering, execution delays in big ticket projects.

2:42 PM

MARKET CHECK

2:32 PM

BROKERAGE RADAR | ICICI Securities on Engineers India

Target: Rs 105 (8%) Target Period: 12-15 months

EIL’s balance sheet continues to remain healthy with zero debt and cash balance of ~| 2660 crore. EIL’s bookto-bill is at healthy ~4.5x (order book at | 10164 crore). We value EIL at 13.5x P/E on FY21E EPS of | 7.7 with a target price of | 105 per share and maintain HOLD rating EIL. Key risks: Any project related headwinds or delays in turnkey segment may further affect revenue growth.

2:22 PM

RESULTS CORNER:: Eicher Motors Q3 standalone net profit down 2.5% YoY at Rs 488.9 cr

-- Revenue at Rs 2,363.5 crore

-- Ebitda at Rs 595.2 crore

-- Tax expense at Rs 145.2 crore

2:14 PM

FMCG stocks under pressure

2:02 PM

Global Markets check

European shares rose to a record high on Thursday, helped by China’s plan to cut tariffs on some US goods and a swathe of strong earnings. The pan-European STOXX 600 index rose as much as 0.7 per cent to a record high of 426.700.

China said on Thursday it plans to halve tariffs on some US goods, which could help improve negotiating conditions for a second phase of a trade deal after the signing of a Phase 1 agreement between the two countries earlier this year. The initial agreement had signaled no further escalation in a prolonged trade war which had severely hampered global economic growth.

Asian stocks edged up on Thursday, a day after U.S. S&P 500 hit a record peak following encouraging economic data, while investors keep a wary eye on the impact of the coronavirus outbreak.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.39 per cent while Japan's Nikkei rose 1.63 per cent.

1:56 PM

MARKET CHECK:: Sensex off day's high

1:55 PM

Rupee check

1:51 PM

MARKET COMMENT:: View On RBI Monetary Policy by Dhiraj Relli, MD & CEO, HDFC Securities

The MPC observed that the economy continues to be weak and the output gap remains negative. Although some high-frequency indicators have turned around and point to a lift in the momentum of economic activity, there is a need to await incoming data to gauge their sustainability. Agriculture shows the promise of faster revival going by the higher Rabi sowing, normal north east monsoon and healthy water storage reservoir level. Reliefs to MSMEs and real estate sector are welcome and will positively impact the valuations of lending companies and real estate companies. As far as the stock markets are concerned, the outcome is more or less in line with expectations and the markets will keep discounting other evolving developments.

1:49 PM

MARKET COMMENT:: View On RBI Monetary Policy by Jimeet Modi, Founder & CEO, Samco Securities

Budget Part II was delivered by RBI in the form of lowering costs to MSMEs and bringing some life into realty wherein loans to commercial sector will be considered as standard (Projects which are just about to complete but are stuck due to last mile funding gaps). RBI indeed used all its might to force banks to lower interest rates to induce transmission for the benefit of end users, which it has partly achieved. New loans are now 69 basis points (bps) cheaper and old loans are cheaper by 13bps given the total 135 bps cut in 2019. Although, interest rates have maintained a status quo, but the RBI has smartly lubricated the slower moving parts of the economy.

1:45 PM

BSE500 stocks that hit 52-week high today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(rs)	CHG(%)
ADANI ENTERP.	235.30	243.60	-0.95	-0.40
AJANTA PHARMA	1298.00	1322.85	103.60	8.67
ALEMBIC PHARMA	646.05	651.20	20.60	3.29
ATUL	4949.75	5050.00	-26.55	-0.53
AVENUE SUPER.	2320.00	2360.75	70.70	3.14

1:36 PM

RBI policy: Monsoon and spending pattern hold key for economic revival

There has not been any surprise in the Monetary Policy Committee (MPC) action as the 7.4 per cent CPI inflation number for December provided little scope for going for a rate cut this time. The commentary of the Reserve Bank of India (RBI) is, however, important as it also takes into account the impact of the Union Budget while handing out the decision and here it is positive. READ MORE

1:31 PM

Contribution to S&P BSE Sensex's gain today

1:23 PM

BUZZING STOCK:: IndusInd Bank zooms 4%

1:16 PM

MARKET COMMENT:: View On RBI Monetary Policy by Sujan Hajra, Chief Economist at Anand Rathi Shares

RBI’s sees rate cuts, we do not

 

As expected, the RBI kept all major policy rates unchanged in the Feb’20 Monetary Policy. RBI expects high inflation to continue in H1 FY21 but fall sharply below 4% thereafter. RBI also expects recovery of growth to continue. It has been categorically stated, “The MPC recognises that there is policy space available for future action”. We, however, are less sanguine on this as 12.2% in MSP hike during 2019 is likely to keep food inflation elevated despite continued softening of onion prices. Moreover, the base effects of fuel and manufactured product prices are also unfavourable. With retail inflation in 5-5.5% range in 2020, we do not expect any rate cut in the current year.

Sentiment boost

 

Despite our expectation of no rate cut in 2020, the categorical statement by MPC about the possibility of rate cut should boost sentiments. Minor fall in some lending rates, boost to bank NII. Linking credit to medium industries to external benchmark, removal of CRR requirement on fresh retail housing and auto loans and credit to MSME are positive steps. These steps may marginally reduce the interest rates on such fresh loans. The removal CRR select loans (~15% of banks’ outstanding loan book) is also likely to give a temporary boost to banks’ net interest income.

1:14 PM

Financials in focus post RBI policy; SBI, BoB, Canara Bank up over 2%

Shares of financials, including banks and non-banking finance companies (NBFCs), bounced back from day’s low on Thursday after the RBI's monetary policy committee (MPC) decision. The Reserve Bank of India kept the repo rate unchanged at 5.15 per cent in its last policy review of the financial year 2019-20 (FY20). The MPC maintained the ‘accommodative’ stance, citing the lingering growth concerns and ensuring inflation remains within target. READ MORE

12:58 PM

BUZZING STOCK:: Indiabulls Housing Finance surges 9%

12:45 PM

Heatmap: S&P BSE Sensex

12:40 PM

BUZZING STOCK:: Spandana Sphoorty gains over 3% post RBI policy announcement

12:37 PM

NEWS ALERT | One-time restructuring MSME scheme extended, to be implemented latest by December 31: RBI

12:36 PM

COMMENT ON RBI POLICY :: Dr. Joseph Thomas, head of research, Emkay Wealth Management

It was widely expected that the RBI was likely to continue with the pause till there is greater visibility on the inflation front. At this juncture, rate modification is actually not required as the interbank market has a huge surplus of close Rs.3 Lakh Crs to support the liquidity requirements of the system, and this alone will ensure that the short-term rates do not move up. The status quo comes as a relief to the short end of the curve, but the pressures at the long end may persist for longer time

12:35 PM

COMMENT ON RBI POLICY :: Suman Chowdhury, President – Ratings at Acuité Ratings & Research

The MPC's decision to hold the policy rate has been completely in line with our expectations. RBI believes that the inflation outlook remains uncertain and may remain elevated through the first half of FY21. Also, it expects the interest rate transmission to be more effective and act as a growth booster as more banks link their lending rates directly to the policy rate. Therefore, any further rate cut looks a little unlikely in the next two quarters though RBI has decided to 'persevere' with the ongoing accommodative policy. The central bank has also decided to incentivise banks' lending for retail and MSMEs further by giving equivalent benefit on their CRR requirement

12:34 PM

Nifty sectoral indices at this hour