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Sensex gains 453 pts as UK, EU reach Brexit deal; Tata Motors jumps 13%

All that happened in markets today.

Bs_logoImageSI Reporter New Delhi
Bs_logoBSE Sensex

2 min read Last Updated : Oct 17 2019 | 4:11 PM IST

Key Events

4:11 PM

MARKET COMMENT :: Ajit Mishra, vice-president for research, Religare Broking

Markets continued their positive bias for yet another session and gained nearly 1%. The first half was dull, but a sharp surge in the banking index in the latter half pushed the benchmarks higher. Besides, the news of Brexit deal between the UK and European Union (EU) further boosted sentiment. All sectoral indices, barring IT, ended in green. Broader indices, too, posted decent gains.
 
Markets are currently dancing to the global tunes, in absence of any major event on the local front.  Meanwhile, we’re seeing volatile swings on the stock-specific front which usually happens during the earnings season. We suggest not to get carried away with the recent surge and maintain positive yet cautious approach

4:04 PM

Tata Motors zooms 13% on the NSE

3:52 PM

Nifty snapshot

3:51 PM

YES Bank, HUL, SBI among top contributors to Sensex's gain

3:50 PM

Sensex heat map :: Tata Motors jumps 10% on Brexit deal

3:49 PM

Index watch : BSE

3:36 PM

CLOSING BELL

The S&P BSE Sensex settled at 39,052, up 453 points or over 1 per cent while NSE's Nifty50 added 122 points or over 1 per cent to end at 11,586. 

3:25 PM

NEWS ALERT | UK PM Boris Johnson tweets on Brexit deal

3:22 PM

NEWS ALERT | Draft deal for Brexit done: UK PM tweets

3:09 PM

Index Contributors at this hour

3:04 PM

Market check | Sensex surges 400 pts

2:45 PM

Anand Rathi Research on Karnataka Bank

Weaker NII growth and higher credit costs led to Karnataka Bank?s Q2 FY20 earnings slipping. With a significant portion of its corporate-book stress already recognised, we expect asset quality to stabilise and the bank?s focus to shift toward normalising profitability. We upgrade our recommendation on the stock to a Buy, given its inexpensive valuation and limited downside risk from the current price, with an altered target price of Rs 90 (earlier Rs 126), valuing it at 0.45x P/BV of its FY21e book

2:43 PM

IIFL on MCX

MCX’s 2QFY20 PAT growth of 100% YoY was ahead of estimates, owing to higher than expected treasury income. Operationally, the performance was strong and in-line. Futures volumes grew 40% YoY to Rs345bn (ADT), driven by the bullion and energy segments; also, Ebitda margins expanded 1,500bps YoY. At CMP, the stock trades at 25x FY21ii EPS and further re-rating will be driven by improved visibility on future volume growth. BUY

2:42 PM

Jefferies on SBI Life

In terms of distribution, SBI Life is most strongly positioned insurer. While on the product innovation & being early mover, HDFC Life has been ahead of industry by far. For IPRU, in our opinion, distribution capacity is mostly utilized (thus creating growth challenges) while on product innovation, they have generally been behind the curve. In this context, both SBI Life & HDFC Life provide a good case for stable 20%+ EV compounding, and thus, expect valuation multiple gap between SBI Life (trading at 2.7x FY21EV) & HDFC Life (trading at 4.6x FY21EV) to reduce

2:41 PM

Real Estate Sentiment Index

Despite a slew of measures to arrest the slump by the government and the Reserve Bank of India (RBI) to boost liquidity and revive demand, a latest survey by Knight Frank – FICCI – NAREDCO - ‘Real Estate Sentiment Index Q3 2019’, shows that the current sentiments of the real estate stakeholders in India has plummeted further to 42 in the July-September quarter of 2019 (Q3 2019) from the preceding quarter - a level previously seen during the heightened uncertainty period of pre-election in the first quarter of 2014 and the demonetisation period (41) in the last quarter of 2016.

The future sentiment, or the outlook for the coming six months, has also turned ‘pessimistic’ for the first time since the inception of this survey, a clear indication that the sector is under immense pressure. However, sentiment toward the commercial real estate sector have remained steady, with the outlook for the new office supply strong for the coming six months. A score of over 50 signifies ‘Optimism’ in sentiments, a score of 50 means the sentiment is ‘Same’ or ‘Neutral’, while a score of below 50 shows ‘Pessimism’.


Equity markets rallied on Thursday after UK President Boris Johnson said that Britain and the European Union had agreed a “great” new Brexit deal and urged lawmakers to approve it at the weekend.

The UK PM tweeted "We’ve got a great new deal that takes back control — now Parliament should get Brexit done on Saturday so we can move on to other priorities like the cost of living, the NHS, violent crime and our environment." CLICK TO READ REPORT

Following the news, stocks such as Motherson Sumi, and Tata Motors jumped in the last few minutes of the trade. That apart, buying in financial counters, too, lifted markets higher. 

The benchmark S&P BSE Sensex added 453 points or over 1 per cent to settle at 39,052 levels. YES Bank (up 15 per cent) emerged as the top gainer on the index while HCL Tech (down 1 per cent) the biggest laggard. On the NSE, the broader Nifty50 index ended at 11,586.35 levels, up 122 points or over 1 per cent.

In the broader market, mid-caps outperformed the headline indices. The S&P BSE MidCap index surged 247 points or around 2 per cent to end at 14,167 levels, while the S&P BSE SmallCap index gained 114 points or 0.89 per cent to end at 12,914 levels.

Sectorally, all the indices on the NSE but Nifty IT ended in the green. Auto counters advanced the most with the Nifty Auto index rising over 3 per cent to 7,914 levels. Nifty PSU Bank came second on the list with dot 3 per cent gains at 2,217 levels. Nifty IT, on the other hand, ended at 15,282 levels, down 0.41 per cent. 
 
GLOBAL CUES

Emerging market stocks rose for the sixth straight session on Thursday. MSCI's index of emerging market stocks rose 0.3 per cent, in its longest winning streak since an 11-day run in April. Mainland China shares ended flat, while most others in Asia rose, along with those in Turkey and Russia.

MSCI's currency benchmark also firmed as the dollar hovered near one month lows after weak retail sales data dimmed outlook for the U.S. economy and raised bets for an interest rate cut.

(With inputs from Reuters)

Topics :MarketsMARKET WRAP

First Published: Oct 17 2019 | 7:25 AM IST