Sensex ends above 34,000 for first time; RCom to exit SDR; stock gains 41%

All that happened in today's trade

3:50 PM

Vinod Nair, Head of Research, Geojit Financial Services 

 

Market started off rangebound as investors' participation remained low due to holiday season, while stock-specific actions in telecom, pharma and metal towards close raised the indices to a new high. Mid and small cap outperformed on expectation of improvement in rural demand supported by continued government reforms.

3:42 PM

Sectoral trend

Nifty PSU Bank sole sectoral loser 

Source: NSE

3:38 PM

Top Sensex gainers and losers 

Source: BSE

3:37 PM

Markets at close

 

The S&P BSE Sensex ended at 34,010, up 70 points, while the broader Nifty50 settled at 10,531, up 38 points.

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,010.61	+70.31	+0.21
S&P BSE SENSEX 50	10,969.14	+28.38	+0.26
S&P BSE SENSEX Next 50	36,850.24	+273.85	+0.75
S&P BSE 100	11,020.91	+37.39	+0.34
S&P BSE Bharat 22 Index	3,803.91	-1.44	-0.04

Source: BSE

3:27 PM

Buzzing stocks 

 

Jet Airways, KNR Constructions, Quess Corp, Morepen Laboratories, D B Realty and Future Consumer were among 92 stocks from the midcap and smallcap indices hit their respective 52-week highs on the BSE in intra-day trade on Tuesday.

 

At 02:58 PM; the S&P BSE Midcap index and the S&P BSE Smallcap index were up nearly 1% as compared to a marginal 0.07% decline in the benchmark index S&P BSE Sensex. The midcap (17,695) and smallcap (19,141) indices touched their respective new highs in intra-day trade today. READ FULL REPORT

3:17 PM

RCom to exit SDR; stock spikes 36%

Source: BSE

3:05 PM

Bitcoin regains $15,000 level 

 

Bitcoin extended its recovery in holiday-thinned trading on Tuesday, rising 10 per cent to be up more than a third from last week's lows of below $12,000.

 

Bitcoin, the world's biggest and best-known cryptocurrency, fell nearly 30 per cent at one stage on Friday to $11,159.93 and, despite a late recovery, had its worst week since 2013. At 0445 GMT on Tuesday, it was quoted around $15,049 on the Luxembourg-based Bitstamp exchange. READ MORE

3:03 PM

Anil Ambani, Chairman, Reliance Group to Business Standard 

 

Ours is a capital light business. It is also a high margin business as I have shown to you and I think shareholders will be well-rewarded in the coming quarters.

2:58 PM

Anil Ambani, Chairman, Reliance Group

 

Expect overall debt for RCom to be around Rs 6000 crore

2:57 PM

Anil Ambani, Chairman, Reliance Group

 

China Development Bank is largest relationship bank for RCom

2:57 PM

Anil Ambani, Chairman, Reliance Group

 

EV of new RCom at Rs 15,000 crore as per Credit Suisse estimates

2:56 PM

Anil Ambani, Chairman, Reliance Group

 

Indian Bank's telecom exposure down by Rs 21,000 crore.

2:55 PM

Anil Ambani, Chairman, Reliance Group

 

New Reliance Communication will consist of enterprise, GCX, Data Center business, 4G sharing biz; 50% of new Rcomm's revenues will come from overseas

2:53 PM

Anil Ambani, Chairman, Reliance Group

 

Resolution plan includes asset monetisation

2:50 PM

Anil Ambani, Chairman, Reliance Group

 

Will transform cable business to B2B business

2:49 PM

Anil Ambani, Chairman, Reliance Group

 

Debt to be reduced by Rs 25,000 crore via pre-payments; transactions to be closed in phased manner between Jan and March 2018

2:48 PM

Anil Ambani, Chairman, Reliance Group

 

RCom has faced mild headwinds due to recent pleas at NCLT. It was a challenge to get 35 global and domestic banks to converge on same path.

2:46 PM

Anil Ambani, Chairman, Reliance Group

 

Have rationalised ops in wireless segment effective November 2017; asset monetisation process Of wireless biz done entirely in a transparent way

2:44 PM

Anil Ambani, Chairman, Reliance Group

 

Resolution plan involves zero write-off to lenders. No debt to be converted into equity

2:42 PM

Have Achieved Full Resolution For Reliance Communication, says Anil Ambani

2:26 PM

HDFC Securities on Infosys

 

Infosys scores ahead of its large cap IT Peers like Wipro, HCL Tech etc in next gen tech services like IoT, block chain, cyber security etc being an early adopter and having higher exposure to BFSI and Manufacturing which will adapt to these fast. The company has not been underperforming its peers on the front of revenue growth and profitability, but its valuation to peers remains discounted amid the leadership mismatch and concerns around Governance. Under new leadership, gradual recovery on growth to normalcy could provide further case of rerating going forward. Further timely shift by the management towards newer areas of growth could reverse the topline growth slowdown. The incoming CEO could bring fresh thrust and direction to the business growth of Infosys though we are yet to hear from him in the matter. The current undemanding valuation (despite improving capital allocation, operational efficiency and business longevity) leaves scope for modest appreciation over the next few quarters.

 

We feel investors could buy the stock at the CMP and add on dips to Rs 942-954 band (~13.0x FY20E EPS) for sequential targets of Rs 1167 (16.0x FY20E EPS) and Rs 1258 (17.25x FY20E EPS). At the CMP of Rs 1039 the stock trades at 14.25x FY20E EPS.

2:07 PM

Markets check

S&P BSE Sensex	33,933.61		-0.02%
Nifty 50	10,488.35		-0.04%
S&P BSE 200	4,663.35		0.19%
Nifty 500	9,444.55		0.14%
S&P BSE Mid-Cap	17,688.54		0.65%
S&P BSE Small-Cap	19,130.52		0.73%

1:54 PM

ADAG Group stocks extend gain

 

Shares of Anil Ambani led Reliance Group companies rallied by up to 19% on the BSE on the back of heavy volumes in an otherwise subdued market.

 

Reliance Communications (RCom), Reliance Infrastructure, Reliance Power, Reliance Capital, Reliance Home Finance, Reliance Nippon Life Asset Management and Reliance Naval and Engineering were up 1% to 19% on the BSE on Tuesday. On comparison, the S&P BSE Sensex was down 0.2% at 33,933 points at 12:59 PM. READ MORE

1:32 PM

Coromandel International hits 52-week high

 

Coromandel International hit a 52-week high of Rs 559, up 4% on the BSE in intra-day deal, after the company said it has signed an agreement to acquire the bio-pesticides business of E.I.D. Parry (India) together with its wholly-owned subsidiary Parry America, Inc, US, through a slump sale. The stock of EID Parry (India) was  up 4% at 365 on the BSE in early morning trade. Both the companies are part of the Murugappa Group. READ MORE

1:17 PM

RCom up 19% intraday on deal buzz

Reliance Communications (RCom) rallied 19% in intraday trade to Rs 19 following news reports that a deal between Anil Ambani’s RCom and Mukesh Ambani’s Reliance Jio will be announced later in the day.

12:58 PM

Oil prices crosses $65 a barrel

 

Oil prices were stable on Tuesday, with Brent crude lingering near 2015 highs on the back of an outlook for healthy demand amid ongoing production cuts led by OPEC and Russia.

 

US West Texas Intermediate (WTI) crude futures were at $58.50 a barrel at 0141 GMT, up 3 cents from their last settlement.

 

Brent crude futures, the international benchmark for oil prices, were at $65.25 a barrel, unchanged from their last close, but near the $65.83 per barrel briefly on December 12 - the highest since June 2015. READ MORE

12:48 PM

India Economic Watch by BofA-ML

 

We take a look at macro questions that will engage markets in the New Year.‎ First, is inflation peaking? We see it climbing to 5.2% in December but the onion and tomato price spike is coming off. Second, will the Reserve Bank of India (RBI) take steps to cool the G-sec market? We expect it to inject about $10 bn via government buyback, reversal of RBI open market operations' (OMO) purchases and maturity of Market Stabilization Scheme (MSS) T-Bills by March. Third, is rural demand really turning up? Rabi cropping, up 1% so far, is a lead indicator. We also track the Southern Oscillation Index (SOI) to see if the La Nina is on track. Fourth, will the 2018 Budget be expansionary? We expect the Ministry of Finance (MoF) to target a fiscal deficit of 3.2% of GDP, like FY18. Budget 2018 should see hikes in rural public spend and the IT exemption limit in the run up to the summer 2019 polls. Finally, will the dollar strengthen on US tax reforms? Our FX strategists see Rs 65.5 per dollar by March with the dollar hardening to 1.1/euro. We see the RBI following an asymmetrical policy of buying FX when dollar weakens and allowing Rs 65-66 vs dollar when it strengthens.

12:31 PM

Jet Airways hits fresh high on heavy volumes

 

Jet Airways rose as much as 6.36% to a record high of Rs 806 on the back of heavy volumes.

12:19 PM

Markets check

S&P BSE Sensex	33,928.80		-0.03%
Nifty 50	10,490.05		-0.03%
S&P BSE 200	4,661.13		0.14%
Nifty 500	9,443.70		0.13%
S&P BSE Mid-Cap	17,672.44		0.56%
S&P BSE Small-Cap	19,129.55		0.73%

12:01 PM

Motilal Oswal Securities on NHPC

 

NHPC has low regulatory risk with high growth potential due to the large untapped water energy potential in India. We expect many regulatory tailwinds, as the government will need to invigorate investment in hydro power to handle volatility in solar energy in order to manage grid. Earnings growth visibility is strong for a few years as two projects are in advance stage of commissioning. Until a new wave to investment cycle strikes, NHPC will be high-dividend-yield stock. Valuations are attractive at P/BV of 1x FY19E and dividend yield of ~6%. We expect the stock to get re-rated as RoE improves. We value the stock at Rs 37/share based on DCF and initiate the coverage with a Buy rating.