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Nifty hits record high; Tata Group shares in demand

Capital Market 

Key equity benchmarks traded in a narrow range near the day's high in early afternoon trade. Easing of geo-political tensions in Middle East and fall in crude oil prices boosted sentiment. The Nifty crossed the 12,300 mark.

At 12:29 IST, the barometer index, the S&P BSE Sensex, was up 293.53 points or 0.71% at 41,745.88.

The Nifty 50 index was up 86.50 points or 0.71% at 12,302.40. It hit a record high of 12,311.20 in early afternoon trade.

The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index was up 0.84% while the S&P BSE Small-Cap index was up 0.94%.

The market breadth was strong. On the BSE, 1593 shares rose and 715 shares fell. A total of 163 shares were unchanged. In Nifty 50 index, 41 stocks advanced while 9 stocks declined.

Economy:

Prime Minister Narendra Modi on Thursday met economists and sector experts at the Niti Aayog to discuss the state of the economy and steps which can be taken to revive growth.

Modi called for a focussed effort from all stakeholders in order to achieve the target of $5 trillion economy in India. He said that the strong absorbent capacity of Indian economy shows the strength of basic fundamentals of the Indian economy and its capacity to bounce back. The prime minister said that the sectors like tourism, urban development, infrastructure and agri based Industry have a great potential to taking forward the economy and for employment generation.

Earlier on Monday, Modi interacted with top business persons to discuss the issues facing the economy and measures needed to boost growth and create jobs.

These meetings are aimed at formulating Union Budget proposals to accelerate economic growth. Finance minister Nirmala Sitharaman will be presenting her second Union Budget on Saturday, 1 February 2020.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.26% to 14.1750. The Nifty January 2020 futures were trading at 12,335.65, a premium of 40.95 points compared with the spot at 12,294.70.

On the options front, the Nifty option chain for 30 January 2020 expiry showed maximum call open interest (OI) of 26.54 lakh contracts at the 12,500 strike price. Call writing was witnessed at 12,600 strike price, which added 4.21 lakh contracts. Call unwinding was observed at 12,300 strike price which shed 3.24 lakh contracts.

Maximum put OI of 46.82 lakh contracts was seen at 12,000 strike price. Significant put writing was seen at the 12,300 strike price, which added 4.25 lakh contracts. Put unwinding was observed at 11,900 strike price which shed 1.43 lakh contracts.

Stocks in Spotlight:

Shares of Tata Group companies advanced after the Supreme Court (SC) on Friday stayed NCLAT order reinstating Cyrus Mistry as executive chairman of Tata Sons.

Rallis India (up 3.33%), Tata Global Beverages (up 3.32%), Tata Steel Long Products (up 3.07%), Tata Power (up 2.6%), Tata Coffee (up 2.46%), Tinplate Company of India (up 1.86%), Tata Chemicals (up 1.81%), Tata Steel (up 1.81%), Tata Motors (up 0.96%), Voltas (up 0.92%), Indian Hotels Company (up 0.54%), Tata Metaliks (up 0.49%), Tata Teleservices Maharashtra (up 0.43%), Tata Communications (up 0.28%) and Tata Investment Corporation (up 0.22%) advanced.

SC on Friday, 10 January 2020, stayed the National Company Law Appellate Tribunal (NCLAT) decision to restore Cyrus Mistry as executive chairman of the Tata Group. SC noted that it looked at the judicial attitude with which the NCLAT made the 18 December order and found that it is sorely lacking.

SC asked Mistry and Shapoorji Pallonji group including Sterling Investment and Cyrus Investment to file a reply to the Tata group's appeal in four weeks.

NCLAT on 18 December 2019 ruled in favour of Cyrus Mistry on petition challenging his removal as Chairman of Tata Sons. The tribunal restored Mistry as the Executive Chairman of Tata Group, holding the appointment of N Chandrasekaran as executive chairman illegal.

Goa Carbon rose 2.52% to Rs 248. The company informed the exchanges post trading hours on Thursday that operations at its Bilaspur init in Chhattisgarh had resumed. The Kiln has been lit up from Wednesday, the filing said. After preliminary heat up and commencement of feeding of raw material, normal production will resume shortly, the company added.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 10 2020. 12:29 IST
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