MARKET WRAP: Sensex reclaims 36,000, Nifty ends at 10,860 led by financials

The S&P BSE Sensex gained 269 points or 0.75 per cent to close at 36,077 while the NSE's Nifty50 index reclaimed the crucial 10,850 level to end at 10,860, up 80 points or 0.74 per cent.

4:05 PM

MARKET COMMENT Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas

Indian indices continue to hold positive momentum tracking firm global cues. Nifty ended this week above 10,800 mark led by banking and FMCG stocks. The domestic sentiment remained optimistic with reports that the government is contemplating several incentives for farmers ahead of the 2019 Lok Sabha elections. Investor to closely track global economic outlook, movement in crude oil and currency along with Q3FY19 earning season due in January. 

We believe long term investors can use volatility in the market to their advantage and maintain a stock-specific approach. We prefer Britannia and Hindustan Unilever from consumption space as macro economic indicator are showing signs of improvement and government focus on rural schemes will boost rural consumption

3:37 PM

Sectoral gainers on NSE

3:36 PM

Gainers and losers of the day on BSE Sensex

3:34 PM

Market at close

 

The S&P BSE Sensex ended at 36,077, up 269 points or 0.75 per cent, while the broader Nifty50 index settled at 10,860, up 80 points or 0.74 per cent.

3:30 PM

3:27 PM

NEWS ALERT Cabinet briefing

RS Prasad: 7 PSUs to be listed on stock exchanges through IPOs

3:10 PM

Gold jumps by Rs 170; silver surges Rs 600

Gold prices Friday rose by Rs 170 to Rs 32,620 per 10 gram at the bullion market in the national capital amid increased demand and firm trend overseas. In line with gold prices, silver also spurted Rs 600 to Rs 39,250 per kg on fresh buying by industrial units and coin makers.

 

Bullion traders said rise in demand from local jewellers and firm trend overseas helped in the rally of gold. In the international market, gold traded higher at USD 1,278.10 an ounce, while silver was up at USD 15.26 an ounce in New York. READ MORE

2:49 PM

NEWS ALERT | Peninsula Land enters into an agreement to acquire 86% of equity in Rockfirst Real Estate; stock jumps 9%

2:48 PM

Oil prices rebound but still weak due to oversupply

Oil prices rebounded on Friday, clawing back some of the ground lost this week, but remained close to their lowest levels in more than a year as rising U.S. inventories and concern over global economic growth kept markets under pressure.

 

Brent crude oil was up $1.20, or 2.3 per cent, at $53.36 a barrel, having earlier risen more than 3 per cent. It had dropped 4.2 per cent on Thursday. US light crude was up $1.20, or 2.7 per cent, at $45.81, after rising 3.6 per cent in early trade. READ MORE

2:34 PM

Top gainers and losers on S&P BSE Sensex

2:16 PM

ICICI Prudential Life's new strategy fails to click with investors

Even after two years of listing, ICICI Prudential Life Insurance (ICICI Pru Life), India’s largest private life insurer, is yet to see meaningful gains. While the year started on a high note, gains faded with the stock losing about 15 per cent so far. But the Street remains optimistic. Its leadership position, coupled with undemanding valuations, has kept analysts positive on the stock. But the insurer is set to face earnings trouble in the near term, thanks to its new strategy with respect to its key equity-linked plans or unit-linked insurance plans. Read more

2:09 PM

ICRA downgrades National Insurance Company's rating to AA from AA+

Rating agency Icra has downgraded the long-term rating for National Insurance Company (NIC) from AA+ to AA. Also, the outlook on the long- term rating has been revised to “negative” from “stable”. According to the Icra report on National Insurance Company, “The rating downgrade was based on the continued weak underwriting performance driven by a high combined ratio, resulting in pressure on profitability, and the high portfolio concentration in the motor and health segments, leading to a weak solvency ratio below the regulatory minimum”. Read more

 

2:02 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,159.59	+352.31	+0.98
S&P BSE SENSEX 50	11,387.39	+116.16	+1.03
S&P BSE SENSEX Next 50	32,928.42	+365.21	+1.12
S&P BSE 100	11,174.59	+115.40	+1.04
S&P BSE Bharat 22 Index	3,494.78	+33.54	+0.97

1:51 PM

Are stocks of non-lending financial institutions a good investment option?

After creating enormous wealth for investors over the past two decades, the banking and non-banking financial institutions (NBFCs) have come under tremendous pressure, owing to mounting non-performing assets (NPAs). Especially post RBI measures to disclose stressed assets and early recognition of NPAs, the growth in profitability of the banks (especially public sector) and NBFCs has become slower than the previous years. READ MORE

1:38 PM

Oil watchers see $70 a barrel in 2019 as fears of recession prove misplaced

The world’s biggest banks are reckoning on a rebound in oil prices next year as fears of a recession prove misplaced.

 

The Brent benchmark will average $70 a barrel in 2019, almost a third higher than its price on Thursday, according to a Bloomberg survey of oil analysts. Futures in London and New York plunged this quarter, with volatility soaring in its final week as crude tracked gyrations in equity markets. READ MORE

1:28 PM

Web Exclusive Special 26: These stocks consistently outperformed markets for 5 years

Even as the mid-and small-cap indices underperformed in the calendar year 2018 (CY18) with a fall of 15 per cent and 25 per cent respectively, 136 stocks beat market returns in CY18. Bajaj Finance, HDFC Bank, Bajaj Finserv and Havells India are among 26 stocks that have outperformed the market in the past five consecutive calendar years.

Of these 26, Bajaj Finance, Associated Alcohols & Breweries, Garware Technologies, Filatex India, Tasty Bite Eatables, Aarti Industries and GMM Pfaudler have seen an over 10-fold surge in price since 2014. Click here to read more

Photo: Shutterstock.com

1:14 PM

Mumbai police files charge sheet against brokers in NSEL default case

Mumbai police has filed a voluminous charge sheet in the National Spot Exchange (NSEL) default case against 63 accused, including 27 individuals, and 36 companies. The names include brokers for the first time, especially those whose executives were arrested in the past in this case.

 

NSEL, a spot trading exchange promoted by Financial Technologies (now 63 Moons Technologies), defaulted about Rs 56 billion in 2013 due to the non-payment of money by 24 clients on the exchange floor, hurting 13,000 investors. Read more

 

1:00 PM

Top gainers on BSE500

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
LEMON TREE HOTEL	74.70	5.90	8.58	189352
NBCC	57.55	3.55	6.57	1025968
MAHINDRA HOLIDAY	207.50	12.80	6.57	16888
RELIANCE CAPITAL	225.90	11.30	5.27	803024
JAIN IRRIGATION	69.95	2.95	4.40	546219

12:50 PM

PSU banks extend gains; Canara, PNB, Vijaya,Syndicate Bank hit 3-month high

Shares of select public sector undertaking (PSU) banks were trading higher for the third straight day on the report that the central government would release Rs 286.15 billion before the end of this month towards a fresh tranche of funds to recapitalise state-run banks. The sharp moderation in bond yields should significantly boost the treasury performance of the banking sector, especially public sector banks (PSBs). Read more

12:37 PM

Dividend a sentiment-positive for Coal India but concerns remain

Coal India has rebounded more than 5 per cent from its lows, seen at start of the month. Though this has been helped by a strong interim dividend of Rs 7.25 a share, concerns on fundamentals remain. While softening international coal prices could put pressure on more profitable e-auction premiums, tepid volume growth could weigh on e-auction volumes. Coal India had reported sales volume growth of 6.5 per cent during the April to November period. Read more

12:24 PM

Banking update (Source: Centrum Broking report)

Key trends during the month

 

$ Non-food credit growth has  been on a rise; for the fortnight ended  23rd Nov, 2018 – credit grew 15.3% YoY; strongest in past 5-years; growth in systemic deposits stood at 9.4% YoY. LDR at 76.7% is at its near multi-year high.

 

$ RBI sectoral deployment of credit for Oct, 2018 pointed to growth acceleration in  segments of services  (+27.4% YoY) and personal loan (+16.8% YoY). Banking credit to NBFC space remains healthy (up 55.6% YoY for the month of Oct’ 18 and fourth consecutive month of 40%+ YoY growth); share of credit to NBFC space is now at 7%, highest ever.

 

$ The quarterly statistics study revealed that private players continue to gain market share. As at Sept’18 – private banks accounted for 31% of systemic credit and 25.7% of overall deposits.

 

Systemic rates; bond yields and spread 

 

$ On a YTD basis, policy rates are up 50bps; MCLR is up 40-50bps over the same time.

 

$ The outbreak of default by IL&FS saw corporate bond spread widened. 10-yr AAA corporate bond spread over 10-yr G-sec is at 110bps (5-year average at 80bps); spread of 10yr AA over 10-yr Gsec is at 160bps (vs. 5-year average at 130bps).

 

$ Nov’2018, however has seen some normalcy returning in commercial paper market with Rs2.4tn of new CP issuances (Rs1.75tn in Oct’18 / Rs2.2tn in Sept’18). On a systemic basis, stock of CP O/s. at Rs5.8tn grew 23.4% YoY. 

 

$ The narrowing of spread between 1-yr AAA corporate bond and 1-yr MCLR rates have seen corporate resort to bank borrowing (over money market instruments).

 

12:17 PM

Emerging markets to face credit crisis in 2019 over currency fall: Report

Credit crisis in emerging markets like India is likely to grow both in scale and scope in 2019 due to the foreign-denominated debt and currency depreciations, a study said on Thursday. "An emerging markets credit crisis will unfold in 2019... Pressure on emerging markets will also mount as the US Federal Reserve increases interest rates and the dollar strengthens, raising the cost of repaying foreign currency-denominated loans," an A.T. Kearney report said. Read more

 

12:07 PM

S&P BSE Oil and Gas index up over 1%

12:01 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,119.59	+312.31	+0.87
S&P BSE SENSEX 50	11,374.78	+103.55	+0.92
S&P BSE SENSEX Next 50	32,901.47	+338.26	+1.04
S&P BSE 100	11,162.69	+103.50	+0.94
S&P BSE Bharat 22 Index	3,494.04	+32.80	+0.95

11:53 AM

CENTRUM RESEARCH | An emerging investment opportunity: FSI

 

Over the past decade, things have dramatically improved for FSI segment (comprising NBFCs, Insurance Companies, Asset Management Companies, Credit Rating Companies, Depositories and Exchanges). If we exclude lending businesses such as NBFCs, the other players can be termed as “Non-Lending Financial Institutions” (NLFIs). A virtuous cycle has unfolded over the last few years amongst these players feeding into success of each other, backed by Indian demographics, increased incomes and elevated disposable surplus. NLFIs have grown in size and confidence, finally setting their entry into Indian capital markets.

11:41 AM

Board meetings today

COMPANY	DATE	AGENDA
CENTRAL BANK	28-12-2018	BOARD MEETING
J K CEMENTS	28-12-2018	BOARD MEETING
MAN INFRA	28-12-2018	BOARD MEETING
NIIT TECH.	28-12-2018	BOARD MEETING
NIMBUS PROJ.	28-12-2018	BOARD MEETING

» More on Board

11:32 AM

All 30 stocks trading in green on S&P BSE Sensex

11:24 AM

Markets in December: 'Bizarre' stock moves leave traders scratching heads

 

As a turbulent December in equity markets draws to a close, there’s one thing traders and investors can agree on: these are not usual times, especially for this time of year. It’s “completely bizarre,” says Stephen Innes, head of trading for Asia Pacific at Oanda Corp. “It’s incredible just how harmful markets veer when sentiment slides.”

Innes has been taking profit on some winning investments, and snapping up blue-chip stocks whose valuations have dropped in the December sell-off, but for the most part he’s keeping his money on the sidelines. Read more

11:11 AM

Future Retail falls 14% in three days in a firm market

Shares of Future Retail, the flagship company of Future Group, have slipped 6 per cent to Rs 484 per share, extending their decline in the past two days in an otherwise firm market. In the past three trading days, the stock slipped has 14 per cent after the government on Wednesday tightened rules for e-commerce companies. In comparison, the S&P BSE Sensex was up 2 per cent during the same period. Read more

 

10:57 AM

5paisa Capital rallies 17% in two days as promoter hikes stake

Shares of 5paisa Capital (5PCL) is locked in the upper circuit of 10% at Rs 223 on Friday, surging 17% in past two trading days, after Nirmal Jain, the promoter of the company hiked his stake through an open market purchase. On Wednesday, December 26, Nirmal Bhanwarlal Jain had purchased an additional 50,000 equity shares of 5PCL through an open market purchase. READ MORE