Key equity barometers ended with decent gains on Wednesday, supported by strong gains in index heavyweight Reliance Industries. The Nifty ended just below the 12,000 level. The benchmark S&P BSE Sensex hit fresh record high of 40,816.38 in morning today.
The barometer index, the BSE Sensex, rose 181.94 points or 0.45% to 40,651.64. The Nifty 50 index rose 59 points or 0.49% to 11,999.10.
In the broader market, the S&P BSE Mid-Cap index rose 0.25% while the S&P BSE Small-Cap index rose 0.07%.
The market breadth was tilted in the favor of sellers. On the BSE, 1204 shares rose and 1349 shares fell. A total of 204 shares were unchanged.
Crude & Currency:
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.88, compared with its close of 71.715 during the previous trading session.
In the commodities market, Brent crude for January 2020 settlement fell 4 cents at $60.87 a barrel. The contract fell $1.52 or 2.44% to settle at $60.74 a barrel during the previous trading session.
Overseas:
European stocks continued to trade lower while most Asian stocks declined in the absence of progress in US-China trade talks.
The United States Senate unanimously passed a bill Tuesday that would require an annual review of the special treatment Hong Kong receives under US law following almost six months of unrest in the Asian financial hub. The vote will be seen as boost for Hong Kong's pro-democracy protesters, and a challenge to the Chinese government at a time of strained US-China relations.
US stocks closed mostly lower Tuesday, with the Dow and S&P 500 retreating from records, on disappointing earnings results and doubts about a US-China trade deal. The Nasdaq, however, notched a record finish on the strength of technology shares.
The United States would raise tariffs on Chinese imports if no deal is reached with Beijing to end a trade war, U.S. President Donald Trump reportedly said on Tuesday, threatening an escalation of the spat that has damaged economic growth worldwide.
In U.S. economic data, U.S. home building rose in October and permits for future home construction jumped to a 12-year high. Housing starts increased 3.8% to a seasonally adjusted annual rate of 1.314 million units last month. Housing starts rose 8.5% on a year-on-year basis in October.
Buzzing Index:
The Nifty Pharma index rose 3.26% to 8,107.60, extending gains for fourth straight session. The index has risen 6.80% from a recent closing low of 7591.45 on 14 November 2019.
Sun Pharmaceutical Industries (up 5.73%), Strides Pharma (up 4.14%), Lupin (up 4.03%), Aurobindo Pharma (up 3.24%), Dr Reddy's Laboratories (up 2.98%), Glenmark Pharmaceuticals (up 2.48%), Cadila Healthcare (up 2.22%), Cipla (up 1.96%), Divi's Laboratories (up 1.58%), GlaxoSmithKline Pharmaceuticals (up 1.31%), Piramal Enterprises (up 0.75%) and Ipca Laboratories (up 0.63%) advanced.
The Nifty FMCG index rose 0.38% at 31,089.35, snapping its seven-day losing streak. The index shed 4.45% in seven trading sessions from its closing high of 32535.90 on 7 November 2019.
Dabur India (up 3.31%), Godrej Consumer Products (up 1.34%), Tata Global Beverages (up 1.34%), Nestle India (up 0.87%), Bajaj Consumer Care (up 0.86%), Jyothy Laboratories (up 0.59%) and Procter & Gamble Hygiene and Health Care (up 0.30%) rose from the FMCG pack.
Stocks in Spotlight:
Reliance Industries (RIL) advanced 2.47% to Rs 1,547.05. The stock hit a record high of Rs 1,571.85 in intraday today. Reliance Jio Infocomm (Jio), a subsidiary of RIL, on Tuesday said it will increase in tariffs in next few weeks in a manner that does not adversely impact data consumption or growth in digital adoption and sustains investments.
A foreign brokerage raised the target price for the shares of RIL to Rs 1,400 from Rs 1,210 per share as it continued to maintain neutral rating on the scrip.
According to the research house, Jio's tariff increase could bring an annual cash flow of more than $1.5 billion, which will help the company achieve zero net debt target by FY21.
The Telecom Regulatory Authority of India (TRAI) data showed that Reliance Jio added 69.83 lakh mobile subscribers in September this year to take its subscriber base to 35.52 crore.
Vodafone Idea soared 17.44% to Rs 7.07. The stock rallied 139.66% in the past four trading sessions to its current market price of Rs 7.22, from its recent closing of low of Rs 2.95 on Thursday, 14 November 2019.
Vodafone Idea lost 25.76 lakh users in September to take its total user base to 37.24 crore.
Bharti Airtel fell 0.46% to Rs 437.25. The stock reversed trend after hitting a 52-week high of Rs 452.95 today.
Bharti Airtel lost 23.8 lakh users in September to take its total user base to 32.55 crore.
On 18 November 2019, both Bharti Airtel and Vodafone Idea proposed to raise tariffs from 1 December 2019.
Yes Bank rose 2.65% to Rs 65.85. Yes Bank said divergence in gross NPAs as of 31 March 2019 was at Rs 3,277 crore and divergence in net NPAs was at Rs 2,299 crore. The bank clarified that the incremental Gross NPA of Rs 2,018 crore is across four accounts of which exposure of Rs 1,041 crore across 3 accounts was internally rated and disclosed as 'BB&Below' as on 30 September 2019. Bank intends to convene board meeting by end of November to finalise capital raising, it said.
Siemens fell 2.28%. The company reported 18.28% rise in consolidated net profit to Rs 333.90 crore on 6.38% rise in total income to Rs 4,290.10 crore in Q4 September 2019 over Q4 September 2018.
NBCC (India) rose 1.08%. The firm said it has received Rs 500 crore order from Ministry of Environment, Forest and Climate, Government of India to provide Principle Project Consultancy and Executing agency for the Development of the National Museum of Natural History at Bhairon Marg, New Delhi.
Shree Cement rose 1.38% to Rs 20,298.95 after the company announced the commencement of the qualified institutions placement (QIP) of equity shares from 19 November 2019. The company's qualified institutions placement committee approved and set the floor price for QIP at Rs 19,806.46 per equity share based on the pricing formula as per Sebi norms. The said decisions were taken at the company's board meeting held on 19 November 2019.
Ultratech Cement rose 0.26%. The company is considering a proposal to raise funds by issuance of 2,500 rated, listed, non-convertible, redeemable, unsecured NCDs of Rs. 10 lakh each aggregating to Rs. 250 crore on private placement basis, including the terms and conditions of the issue, on or after 22nd November 2019.
Central Bank of India fell 3.52%. The bank reported Rs 2,565 crore divergence in Net Non-Performing Assets, where RBI assessed a net NPA of Rs 13,898.24 crore as against Rs 11,333.24 crore reported by the bank as on 31 March 2019.
Bandhan Bank fell 1.99% on reports that some women borrower groups staged protests in Assam, seeking a ban on microfinance companies.
SpiceJet rose 1.60% after the domestic airline company announced the signing of Memorandum of Understanding (MoU) with Gulf Air for exploring cooperation. The MoU will be focused in the area of interlining and code sharing agreement, coordinating cargo services and pilot training.
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