MARKETS: Indices gain on US-Iran truce, Sensex up 635 pts, Nifty at 12,215

All that happened in the markets today

After a gap-up opening, Indian equities Thursday logged steady gains as investors cheered temporary de-escalation of a heated rhetoric between the United States and Iran. 

In response to Iran's missile attack, US President Donald Trump said the strikes had not harmed any US troops stationed there and that damage was minimal. Trump, however, announced fresh sanctions on Tehran but stopped short of any further military escalation. This slight cool-off gave global markets some space for a relief rally.

Financials contributed the most towards the benchmark S&P BSE Sensex's gains, pushing the index to close 634.61 points, or 1.55 per cent, higher at 41,452.35 level. ICICI Bank, State Bank of India, IndusInd Bank, and M&M were the top performing stocks at the 30-share index, while TCS, HCL Tech, NTPC, and Sun Pharma were the top laggards.

On the NSE, the broader Nifty50 reclaimed the crucial 12,200-mark after three trading session and settled at 12,215.40, up 190.05  points or 1.58 per cent. All the sectoral indices ended the day in the positive territory, except Nifty IT index. Nifty PSB, Nifty Private Bank, Nifty Auto, Nifty Realty, and NIfty Media indices were all up about 2.5 per cent. On the downside, Nifty IT index settled with 0.5 per cent cut.

The broader markets, too, participated in the rally. The S&P BSE small-cap index hit a 6-month high on the back of strong rally in agri inputs, fertilizers, education, metals, textiles and real estate stocks. The index closed 1.49 per cent higher at 14,080.58 level. Meanwhile, the S&P BSE mid-cap index closed 1.51 per cent higher at 15,097.79 level. 

GLOBAL CUES

Asian stocks had their best session in weeks on Thursday, as the United States and Iran backed away from the brink of conflict in the Middle East and investors reversed their flight to safety.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.3 per cent, its sharpest gain in almost a month.

Hong Kong’s Hang Seng and Shanghai blue chips each added more than 1 per cent, while Japanese stocks rose further, gaining 2 per cent to their highest for the year so far.

In Europe, the pan-European STOXX 600 index rose 0.6 per cent to a record high of 420.98, while stocks in Germany, the bloc's biggest economy, gained 1.1 per cent.

In the commodities market, Brent Crude Futures were at $65.86 per barrel-mark, while WTI Crude was at $60 per barrel-mark by 3:00 pm.

(With inputs from Reuters)

4:02 PM

Market Closing Comment :: Nagaraj Shetti – Technical & Derivative Analyst, HDFC Sec

After showing a promising upside bounce from the lows in the last session, the Nifty witnessed a hefty gains today and closed higher. A long bull candle was formed today with gap up opening and closed near the highs. The opening upside gap remains unfilled. Technically, this action indicates a strong comeback of bulls and this pattern seems to have nullified the negative status created by the panic selling of 6th Jan 2020.

 

The short term trend of Nifty is positive, there is a possibility of further upside in the next session. The Nifty could encounter the upside resistance of 12,290-300 levels in the next 1-2 sessions.

4:01 PM

Market Closing Comment :: S Ranganathan, Head of Research at LKP Securities

Diplomatic Handling of the Iran-US geopolitical situation by the US President calmed markets today. Back Home the keen interest shown by the Prime Minister in resolving the slowing economy cheered equity markets which witnessed buying in key pivotals and select midcaps

4:00 PM

Market Closing Comment :: Vishal Wagh, Research Head, BONANZA PORTFOLIO

Weekly expiry happened on a stronger and bullish note. Bulls tighten grip over the market and major gains have seen in Banks and Auto Sector. Bullions have seen profit booking since morning whereas Crude gained more than half percent point. The rupee strengthened and covered lost ground in the last three trading sessions. Now tomorrow onwards Indian corporate will come with their performance for the third quarter. Bulls will overpower bears till the time it is holding above 12,150. It is advisable to hold long with a stop just below 12,150 levels.

3:41 PM

Nifty snapshot at close

3:40 PM

Sensex heatmap at close

3:39 PM

Closing Bell

>> Financials contributed the most towards the benchmark S&P BSE Sensex's gains, pushing the index to close 634.61 points, or 1.55 per cent, higher at 41,452.35 level.

>> On the NSE, the broader Nifty50 reclaimed the crucial 12,200-mark after three trading session and settled at 12,215.40, up 190.05  points or 1.58 per cent. 

3:23 PM

ETC India to invest $77 mn to ramp its nationwide capacity with IFC backing

Company plans to improve the operational capacity of its existing plants from the existing 50 per cent level to 85 per cent by fiscal year 2022. The company also wants to augment its pulse processing capacity by annual leasing of third party operated pulse processing plants (3P mills) and has set a target of 40,000-60,000 MTPA in FY20. Eventually, the firm targets augmenting approximately 140,000 MTPA processing capacity through annual leasing of 3P mills by fiscal year 2022. READ MORE

3:14 PM

World Bank pegs India's FY20 GDP growth at 5% as credit weakness lingers

"In India, where weakness in credit from non-bank financial companies is expected to linger, growth is projected to slow to five per cent in fiscal year 2019/20, which ends March 31, and recover to 5.8 per cent the following fiscal year," the World Bank said on Wednesday. READ MORE

3:03 PM

NEWS ALERT | CCI looking at anti competitive practice allegations against Maruti: CNBC TV18

-- CCI probing complaint of Maruti asking customers to buy pricier motor ins

3:00 PM

Global Markets check

European shares touched a record high Thursday, tracking broader gains in global equities, after the United States and Iran backed away from further military escalation in the Middle East. Also lending support was confirmation from China on the signing of a “phase 1” trade deal with the United States next week, leading to an easing in trade related concerns.
 

The pan-European STOXX 600 index rose 0.6 per cent to a record high of 420.98, while stocks in Germany, the bloc's biggest economy, gained 1.1 per cent.

Asian stocks had their best session in weeks on Thursday, as the United States and Iran backed away from the brink of conflict in the Middle East and investors reversed their flight to safety.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.3 per cent, its sharpest gain in almost a month.

 

Hong Kong’s Hang Seng and Shanghai blue chips each added more than 1 per cent, while Japanese stocks rose further, gaining 2 per cent to their highest for the year so far.

 

Australian stocks rose 0.8 per cent to a record closing high.

2:55 PM

NEWS ALERT | 1.07% equity exchanged of Avenue Supermarts

>> Stock gained up to 4%

>> 6.94 million shares have changed hands on the BSE.

2:45 PM

Rupee Check

2:39 PM

Coal India: No immediate pressure from new players but outlook remains weak

The government’s approval to the ordinance, which allows other players to mine coal for open-market sales, on Wednesday negatively impacted the stock of Coal India. Despite benchmark indices seeing a good recovery at the end of the day, Coal India’s share price was down 2.6 per cent on Wednesday. The BSE Sensex, after falling about a per cent (intraday), ended on a flat note. READ MORE

2:30 PM

NEWS ALERT | Aster DM Board approves buyback of up to 57.1 lakh shares: CNBC TV18

>> Board approves buyback of up to 57.1 lakh shares (1.1% equity) at Rs 210/sh.

>> Total buyback size will be Rs 120 cr via tender offer

2:24 PM

PM Modi meets economists, industry experts at Niti Aayog ahead of Budget

Ahead of the Union Budget for 2020-21, 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 which is projected to drop to 5 per cent this fiscal. The high-profile meeting was attended by Home Minister Amit Shah, Road Transport and Highways Minister Nitin Gadkari, besides Niti Aayog Vice Chairman Rajiv Kumar, CEO Amitabh Kant and other senior officials of the think-tank.