Sensex soared 428 points, tracking strong gains in global equities led by optimism over US-China trade deal and Boris Johnson's win in the UK.
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Will Dalal Street see a Santa Rally?
The market has confidently crossed the 12,080 level, which is positive, and the strategy should be to trade long on dips between 12,000 and 11,950. On the downside, 11,900 would be the ultimate support. Above 12,100, Nifty would face hurdles at 12,160 and 12,250
Oscillator setup on lower time frame charts is turning bullish. Nifty shall head towards its lifetime high placed at around 12,158. However, considering the fact that index has erased four sessions of losses in just two days, some breather for the bulls can be expected in the next session
- Mazhar Mohammad, Chief Strategist-Technical Research & Trading Advisory, ChartviewIndia
Nifty, which formed a strong bullish candle on the weekly scale, is just 72 points away from its lifetime high of 12,158, and a small followup could extend the rally. Now, Nifty has to hold above the 12,035 zone to extend momentum towards 12,250-12,300 zone, while on the downside, support exists at 12,000 and then 11,950
Signing of the phase one trade deal between the US and China has come after a series of on & off on trade negotiations. Though Trump had gone back on some of his earlier pronouncements, this deal signing appears as a new positive step. This along with the emphatic victory of Boris Johnson in the UK polls has come as a major relief for the slowing global economy. Johnson's victory will pave the way for an orderly Brexit thereby removing some concerns on European trade
- V K Vijaykumar, Chief Investment Strategist, Geojit Financial Services
Hopes of a smooth Brexit following a decisive victory in the UK elections, hopes of a trade deal between the US and China and hopes of fresh sops by the government kept Indian market buoyant through the day with both Nifty and Sensex recording 1 per cent gains today
- S Ranganathan, Head of Research, LKP Securities
Bulls marched ahead and continued with the momentum. All signs suggest bulls are in a mood to push Nifty higher towards fresh all-time highs however, over the weekend global as well as local triggers are lined up which could create some volatility going ahead. Market breadth was strongly positive and all sectoral indices were in the positive with the highest gainer bein the PSU Bank index. Near-term support is placed at 11,980 zone. Support: 11,980-11,900 & Resistance: 12,150-12,400
- Amit Shah, Technical Research Analyst with Indiabulls Ventures
The good news from the foreign shores pushed the benchmarks higher despite weak macroeconomic data. The recent developments on the global front have subsided the fear of prolonged crisis and that cheered the participants across the world markets including ours. And, we feel the positive momentum to extend further in the coming week too. However, we’re still seeing participation restricted largely to the handful of the index majors. We thus advise keeping caution in the stock selection and preferring index majors over the others
- Ajit Mishra, VP - Research, Religare Broking
Sensex rose 1.4% this week. The market was positive despite concerns of rising inflation and weakness in macro data. YES Bank, TCS and HCL Technologies were the top losers, while Tata Steel Tata Motors and Kotak Mahindra Bank were the top gainers. On the economy front, November CPI inflation rose to 5.54%, while October IIP growth was at (-) 3.8%. FPIs bought equities worth$182 million over the past five trading sessions while DIIs bought $64 million worth equities in the same period
Market continued its winning streak fuelled by trade deal optimism and positive cues from the UK election. Global growth sentiment helped domestic indices to subside weak CPI & industrial data in the near term. Mid & small cap also participated in today’s rally, we believe this potential change in risk appetite may help investors to look beyond the polarised market
- Vinod Nair, Head of Research, Geojit Financial Services
CLOSING BELL: Sensex surges 428 pts on trade deal hopes, Brexit clarity; Nifty at 12,086; Axis, SBI jump 4% each
NBFC crisis poses more bad loan risks for banks: Moody's
Automobile sales decline for 12th month in a row (Source: Brickwork Ratings)
Domestic automobile sales fell by 12% y-o-y in the month of November 2019 largely driven by weak sales of commercial vehicles and two wheelers. Commercial vehicle sales were down by 15% and two & three wheelers sales were down by 14% y-o-y in November 2019. The weak commercial vehicle sales reflect the subdued state of industrial activity in the country and weak two wheeler sales indicate low rural demand. Commercial vehicles sales were also impacted by revised axle norms and financing issues due to NBFC crisis.
UK shares with heavy exposure to the domestic economy surged on Friday after Prime Minister Boris Johnson's Conservative Party won a sweeping majority, assuring markets that Britain is likely to be heading for an orderly exit from the European Union.
The export-heavy FTSE 100 index rose 1% as negative impact from strong sterling was offset by a rally in utilities, retailers, housebuilders and banking stocks. The British pound surged to 19-month high versus the dollar.
GIC Housing garners Rs 200 cr via commercial papers
GIC Housing Finance on Friday said it has raised Rs 200 crore by issuing commercial papers to ICICI Mutual Fund. The company has allotted commercial papers worth Rs 200 crore on December 12, 2019 at a rate of 5.36 per cent for 56 days to ICICI Mutual Fund, it said in a regulatory filing. GIC Housing stock was trading at Rs 150 on the BSE, up 0.98 per cent from the previous close.
Prince Pipes and Fittings to launch Rs 500 crore IPO on Dec 18
Prince Pipes and Fittings Rs 500 crore initial public offer (IPO) will open on December 18, the company said on Friday. The polymer pipes and fittings manufacturer has fixed a price band of Rs 177-178, which includes a fresh issuance of shares worth Rs 250 crore and an offer for sale of Rs 250 crore.
The minimum bid lot is 84 equity shares and in multiples of the same thereafter. The offer is being made through the book-building process and 50 per cent of the offer shall be available for allocation to qualified institutional buyers.
Here are the top reasons why Dalal Street was on a roll:
Easing trade tensions
Global equity market got a leg up after reports that the Trump administration and China are close to finalising a modest trade agreement that would suspend tariffs that are set to kick in on Sunday, de-escalating their 17-month trade war.
Boris Johnson is set to be re-elected as British prime minister with a landslide majority in the country’s general elections, an exit poll suggested on Friday, a victory that will end the uncertainty over Brexit and will help him to take UK out of the European Union by the end of next month.
Firm Asian markets
Majority of Asian peers were also trading higher following positive global developments. Hang Seng, Nikkei and Shanghai also gained up to 2.50 per cent in Friday’s trade.
In the latest Golden Cross, the 50-day moving average of the MSCI EM Index has reached 1,038 compared with the 200-day moving average of 1,033, according to the Bloomberg data. In March, the EM index had gained nearly 6 per cent after forming a Golden Cross pattern before topping out. The Sensex and Nifty50 too reported the Golden Cross formation about a fortnight ago.
Kotak Institutional Equities raised its target price on energy-to-telecom conglomerate Reliance Industries to Rs 1,825 from Rs 1,725 earlier, implying an upside of 16 per cent from current levels.
PSU shares trade higher; BHEL rises 2%
Shares of PSUs were trading with gains in Friday's afternoon session.
Shares of General Insurance (up 4.17 per cent) , Container Corporation of India (up 2.51 per cent) , Bharat Heavy Electricals (up 2.43 per cent) , Steel Authority of India (up 2.39 per cent) , Coal India (up 2.18 per cent) , New Indian Assurance (up 1.89 per cent) , National Aluminium Company (up 1.85 per cent) , Power Grid Corporation of India (up 0.89 per cent) , NHPC (up 0.42 per cent) ,(up 0.35 per cent) , Oil & Natural Gas Corporation (up 0.32 per cent) , Bharat Electronics (up 0.2 per cent) , REC (up 0.19 per cent) , National Mineral Development Corp (up 0.18 per cent) and GAIL (India) (up 0.17 per cent) were among the top gainers.
Bank of Baroda climbs 3% after share purchase agreement with Ansa Merchant Bank
Price as on 13 Dec, 2019 12:43 PM, Click on company names for their live prices.
RBI buying dollars via state-run banks: Traders
The Reserve Bank of India is suspected to be buying dollars in the market via state-run banks to prevent appreciation in the rupee above the 70.50 per dollar level, four traders said on Friday.
Asian stocks glimpse a brighter future as global clouds lift
Asian shares scaled eight-month peaks on Friday as a last-gasp Sino-U.S. trade deal and a likely major election win by Britain’s Conservative Party looked to have cleared a couple of dark clouds from the global horizon, Reuters reported.
RBI to cut rates 25bp on Feb 6 if inflation peaks off by Jan : BofA Securities
"When can the RBI MPC next cut rates? Our base case sees a 25 bps cut on February 6, after inflation peaks off at ~6% in December/January. While the RBI repo rate will still be negative, this should reduce lending rates on retail/SME bank loans linked to the RBI repo rate (as external benchmark) before the 'busy' season ends in March. Although nominal MCLR has fallen about 40 bps since April, on RBI easing, real MCLR has shot up 120 bps," BofA Securites
No more rate cuts?
Despite the RBI’s resolve to support growth, given the inflation target of 4%, the recent flare in inflation, the likelihood of inflation being high in 2020 and the fiscal slippage-led further inflationary pressure build-up pose serious challenges. In Dec’19, rather than a further rate-cut, the RBI is likely to focus more on ensuring transmission of rate cuts effected so far. (Source: Anand Rathi)
The National Stock Exchange (NSE) has revived its listing plans which were stalled due to litigation against the exchange in the colocation matter. The NSE has reached out to the finance ministry and Securities and Exchange Board of India (Sebi) seeking their opinion about its plan to restart the IPO process and complete it sometime next year, three people with direct knowledge of the matter told ET.
Ashish Chugh makes a case for abolishing LTCG
Govt loses nothing by abolishing LTCG Tax–collections of LTCG is not happening anyways–STCG Tax & STT too have dec… https://t.co/c1OrRnplmq
This slowdown is driven by an interplay of factors. This is part cyclical and part structural, which points to the likelihood of a slow climb to recovery in 2020
FM Sitharaman to address press conference at 3.15 today
45 stocks hit 52-week lows on NSE
Around 45 stocks fell to touch their 52-week lows on NSE in Friday's session.
Among the stocks that touched their 52-week lows were DHFL, CCL Products, Reliance Capital and Agarwal Industrial.
International Paper APPM, Goodluck and Jump Networks also featured among the stocks that touched their 52-week lows on NSE.
Shares of Ujjivan Small Finance Bank slumped 8 per cent in Friday's session as investors flocked to book profits after the scrip gained 51 per cent on the first day of trading on bourses on Thursday.
The stock was trading at Rs 52, down 6.98 per cent on BSE.
Amid much fanfare Ujjivan Small Finance Bank debuted on Thursday at a premium of 59 per cent. It, however, pared gains to end the day at Rs 55.90, up 51 per cent from the issue price.
Palm oil prices jump 40% in a year
The wholesale price of RBD Palmolein, as it’s known, has jumped 39.96% to $725 a tonne from $518 a year ago, data from trade body Solvent Extractors’ Association (SEA) shows. The corresponding rate in rupees is up 32.25%.
SoftBank-backed Paytm raises $660 million
Indian digital payments startup Paytm’s parent has raised nearly $660 million from investors including Alibaba’s Alipay, SoftBank’s SVF Panther (Cayman) and funds managed by T Rowe Price among others, according to a filing. The board of One 97 Communications Ltd will allot about 2.6 million shares to the investors, financial data accessed by business intelligence platform Tofler dated Dec. 12 showed. (Source: Ruters)
IDBI Bank rises 10% amid talks of selling stake in Arcil
Shares of IDBI Bank surged 10 per cent in Friday's session after a media report suggested it is in talks to sell stake in asset aggregator Arcil. However, the stock pared some gains as trading progressed.
IDBI Bank, which is backed by LIC, is in talks with US-based Avenue Capital to sell its entire 19.18 per cent stake in India’s oldest stressed asset aggregator Asset Reconstruction Co of India (Arcil), as it looks to monetise its non-core investments, ET reported.
However, IDBI Bank CFO Ajay Sharma said it has not initiated discussions with prospective buyers.
Shares of YES Bank advanced over 3 per cent in Friday's session after ET reported that the private sector lender is seeking exemption from Sebi to raise funds under the qualified institutional placement (QIP) programme as a backstop for its ongoing plan to sell stake via preferential allotment.
Debt MFs exposure to NBFCs declines
Podcast: What might matter on D-Street today
Today, USDINR pair is expected to quote in the range of 70.50 and 71.05
- Motilal Oswal Financial Services
Vodafone Idea, YES Bank, Tata Motors among most active stocks on NSE
Price as on 13 Dec, 2019 09:28 AM, Click on company names for their live prices.
OPENING BELL: Sensex jumps 250 points, Nifty nears 12,050; UCO Bank surges 18%, IDBI Bank 9%
Pre-open session: Sensex rises 130 points, Nifty tops 12,000; rupee trades at 70.55 against US dollar
Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange traded 32 points, or 0.27 per cent, up at 12,056.50, indicating a positive start for Dalal Street.
Tech view: Nifty forms bullish candle
Nifty before closing nearly 62 points higher at 11,972, the index hit an intraday high and low of 12,005 and 11,934, respectively. Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia, said albeit intraday profit booking from the intraday high resulted in a slightly longer shadow, which is dominating the candle body, that itself can’t be construed as a weak sign.
Asian shares gain
Asian share markets jumped on Friday as a last-gasp Sino-US trade deal and a likely major election win by Britain's Conservative Party looked to have cleared a couple of dark clouds from the global horizon. In Asia, Japan's Nikkei climbed 2.1 per cent to a 14-month high, while South Korean stocks firmed 1.2 per cent. E-Mini futures for the S&P 500 rose 0.4% to another peak. MSCI's broadest index of Asia-Pacific shares outside Japan put on 0.5 per cent.
US stocks close higher
Wall Street's main indexes hit record highs following news that the United States had reached a "deal in principle" with China to resolve a trade war that has rattled markets for nearly two years. The Dow Jones Industrial Average rose 220.75 points, or 0.79 per cent, to 28,132.05, the S&P 500 gained 26.94 points, or 0.86 per cent, to 3,168.57, and the Nasdaq Composite added 63.27 points, or 0.73 per cent, to 8,717.32.
FIIs sell Rs 683 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 683.83 crore on Thursday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 810.23 crore, data suggests.
Oil prices hit three-month high
Crude oil prices rose to the highest level in almost three months after President Trump signed off on a limited trade deal with China, improving the global demand outlook. Futures in New York added as much as 0.7% Friday after climbing by that amount Thursday. Crude is poised to eke out a small gain this week due to the positive sentiment around the trade deal after surging by more than 7% the week before