Sensex, Nifty at day's high; Europe opens higher

The benchmark indices advanced further in afternoon trade, tracking a China-led recovery in broader Asian markets. Steep drop in crude oil prices also supported buying. At 13:25 IST, the S&P BSE Sensex, advanced 807.33 points or 2.02% at 40,679.64. The Nifty 50 index surged 241.40 points or 2.06% at 11,949.30.

The broader market trailed the benchmark index. The S&P BSE Mid-Cap index was up 1.51% while the S&P BSE Small-Cap index was up 1.39%.

There were more buyers than sellers. On the BSE, 1536 shares rose and 776 shares fell. A total of 173 shares were unchanged. In Nifty 50 index, 46 stocks advanced while 4 stocks declined.

 

Economy:

Fitch Ratings on Monday said India is expected to clock a GDP growth of 5.6% in the next financial year, as Budget 2020 has not "materially altered" its view on the country's growth outlook.

The Economic Survey of India released by the government last week projected India's growth rate at 6-6.5% for FY21.

Stocks in Spotlight:

Among Nifty companies, Titan Company (up 3.19%), Adani Ports and SEZ (up 0.69%) and Bharti Airtel (up 0.60%) will announce their Q3 2019 earnings today.

Reliance Industries (RIL) gained 2.54% to Rs 1421. RIL informed that new production from KG D6 project is on track to start by mid-2020. In an exchange filing made after market hours yesterday, the company said that the RIL-BP joint venture confirmed that it has completed the safe cessation of production in a planned manner, from the D1 D3 field in Block KG D6 (KG-DWN-98/3), off the east coast of India. The first-gas from these fields is expected in mid-2020. The peak production from these three fields is expected to reach 1 billions of cubic feet equivalent per day which is about 15% of the then envisaged India's demand.

Shares of L&T were trading 0.88% higher at Rs 1298. The Metallurgical & Material Handling Strategic Business Group of L&T Construction has been awarded an order by Etihad Rail Company PJSC for the Design and Build of Freight Handling Facilities across United Arab Emirates. The project will be executed in Joint Venture with Power China. The scope of work involves Design, Engineering, Procurement, Construction & Commissioning of Bulk Material handling systems (Rail loading and unloading systems) with associated civil and structural works, bulk material storage facilities, general cargo and container handling facilities with freight terminal management & control systems. L&T has classified the order win as a Large (Rs 2500 crore - Rs 5000 crore) contract.

Bajaj Auto slipped 3.10% to Rs 3187.55 after total domestic auto sales fell 3.11% to 3.94 lakh units in January 2020 as against 4.07 lakh units sold in January 2019. Total 2-wheeler domestic sales slipped 22% to 1.57 lakh units in January 2020 as against 2.03 lakh units reported in January 2019. Total 2-wheeler exports jumped 19% YoY to 1.74 lakh units in January 2020. Total domestic sales (2 wheeler + CV) declined 17% to 1.92 lakh units in January 2020 as against 2.31 lakh units reported in January 2019.

TCS was up 0.14% to Rs 2106. The IT major said it has won a $1.5 billion deal across a ten-year period from US pharma retailer Walgreens Boots Alliance (WBA) to transform its technology operations.

Global Markets:

European shares opened in the green while Asian markets were trading higher on Tuesday as investors gauged efforts to contain the coronavirus and awaited potential responses from policy makers.

The US Dow index futures was up 221 points on Tuesday, signaling a continuation of the enormous relief rally that began at the start of the week.

The US stock market bounced back on Monday, clawing back some losses from Friday's brutal selloff, even as investors kept an eye on battered Chinese equity exchanges.

Also helping drive gains in US stocks were data on the manufacturing sector from the Institute for Supply Management, whose purchasing manager's index rose to a six-month high of 50.9% in January. A reading above 50% indicates expansion, while below 50% indicates contraction.

Crude Oil fell to its lowest level in more than a year on concerns of the coronavirus outbreak and its potential impact on demand. China is world's largest crude importer. The media reported that OPEC members are planning an emergency meeting for discussing large production cut. In the commodities market, Brent crude for April 2020 settlement was up 30 cents at $54.75 a barrel. The contract tumbled 3.83% to settle at $54.45 a barrel in the previous trading session.

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