Market Wrap, Jan 16: Sensex hits Mt 42K; midcaps outperform

The benchmark indices scaled fresh lifetime highs today supported by gains in heavyweights such as Reliance Industries, HDFC Bank, Hindustan Unilever, and Bharti Airtel. Ending over a year-long trade war, the signing of the US-China trade deal, too, fueled investment appetite. 

The S&P BSE Sensex mounted the crucial 42,000-mark in the intra-day trade today and continued its run to hit a high of 42,059.45. The index, however, closed at 41,932.56 level, up 59.83 points or 0.14 per cent. At close, Nestle, Bharti Airtel, and HUL (1.5 per cent) were the top gainers at the 30-share index, while NTPC, Tech M, and Tata Steel were the top laggards. 

Nestle India hit a new all-time high of Rs 15,399 after gaining 3.5 per cent on the BSE today amid expectations of another good quarter. The packaged foods company, which is scheduled to announce its Q4CY19 results on February 13, 2020, surpassed its previous high of Rs 15,147, recorded on October 31, 2019.  The stock closed 3.23 per cent higher at Rs 15,347. 

A sharp surge in stock price has seen the company's market capitalisation balloon to near Rs 1.5-trillion mark. Currently, Nestle India stands at 20th position in the overall ranking of listed companies with a market cap of Rs 1.47 trillion, BSE data shows.

On the NSE, the broader Nifty50 index hit a fresh high of 12,389.05-mark. The index, eventually, settled at 12,355.50-mark, up 12.20 points or 0.099 per cent.

All the key sectoral indices closed the day with gains, except Nifty Metal index that slipped 1.32 per cent on profit booking. On the upside, the Nifty FMCG index hit a 2 month high of 31,508 points in the intra-day today as fast-moving consumer goods companies were trading actively on the index on expectations of recovery in demand. The index, which hit its highest level since November 15, 2019, settled 0.24 per cent higher on the NSE.

That apart, Thursday turned out to be another day for outperformance for the broader markets. The S&P BSE small-cap index surged nearly 1 per cent in the intra-day trade today before settling 0.78 per cent higher at 14,647.54. The S&P BSE mid-cap index, on the other hand, ended at 15,625.23 level, up 0.77 per cent. It had gained 0.9 per cent in the intra-day trade.

In company-specific news, senior executives of AirAsia including CEO Tony Fernandes have been summoned by the Enforcement Directorate in connection with a money laundering case. The ED probe is related to allegations that the airline tried to manipulate government policies through corrupt means to get the international licence for its Indian venture AirAsia India Limited.

Here's how the global markets performed today: 

World stocks inched ahead to a record high on Thursday after the United States and China signed an initial deal to defuse their 18-month trade war. 

MSCI’s broadest index of world stocks firmed 0.03 per cent in Asia, while its index of Asia-Pacific shares outside Japan rose 0.13 per cent.

Japan’s Nikkei rose 0.14 per cent while mainland China’s Shanghai Composite index was almost flat. The pan-European STOXX 600 index was up 0.1 per cent.