Indices snap 6-session losing streak, Sensex rises 318 points; banks lead

All that happened in the market today

Benchmark indices ended higher on Thursday after six sessions of losses, as Asian equities rose on hopes that US President Donald Trump’s plan to introduce hefty tariffs on steel and aluminium imports could exclude certain key partner countries.

Asian shares outside Japan rose sharply as fears of a global trade war eased after White House signalled that the proposed hefty US tariffs on steel and aluminium imports could exclude Canada, Mexico and a clutch of other countries.

Among sectoral indices, the Nifty PSU Bank index rose over 2% higher today lead by a rise in shares of State Bank of India, Bank of Baroda and Syndicate Bank.

Shares of telecom service providers rose by up to 5% on the Bombay Stock Exchange (BSE) in intra-day deals but later ended flat for the day. The government, on Wednesday, cleared a relief package for the debt-ridden sector, giving more time to operators to pay for the spectrum bought in auctions.

The government has cleared the much-awaited relief measures for the debt-ridden telecom sector, providing operators the option of paying their spectrum instalments in a longer time frame and easing the spectrum holding limits.

(with inputs from Reuters)

4:05 PM

MARKET COMMENT Mustafa Nadeem, CEO, Epic Research 

Nifty has its important support of 200 - day simple moving average (SMA) at 10140, which provided a short-term relief to market to bounce back and see some short covering. Though this may be validated in next few days if the market also sustains the 200-day SMA. On the upside, we expect this short-term rally to continue till 10300 - 10350 on the Nifty, where it may face selling pressure again

3:44 PM

BSE Smallcap: Bhushan Steel, Mangalam Drugs & Organics top gainers of the day, Dalmia Sugars top loser

3:41 PM

BSE Midcap: Vakrangee, Reliance Infra top gainers of the day, IDBI top loser

3:39 PM

Nifty PSU Bank index ends 2.8% higher

3:37 PM

Sectoral Trend

3:35 PM

BSE Sensex gainers and losers

3:33 PM

Market at close

 

The S&P BSE Sensex ended at 33,352, up 318 points while the broader Nifty50 index settled at 10,243, up 88 points.

3:17 PM

Centrum on Praj Industries

Given the 9MFY18 financial performance (revenue up ~5% and net profit down 41%), we anticipate FY18E numbers to be weak. On the back of mature valuations and slow ordering activity impacting the company’s growth, we maintain our Neutral rating. We would continue to monitor Praj for any improvement in order book leading to better future growth visibility.

3:16 PM

BEML falls 18% in three days after clarification on stake sale report

 

BEML hit a 52-week low of Rs 1,112, down 7% on the BSE in intra-day trade, extending its past two days decline, after the company said it is not aware of government in principle approval to sell 26% stake in the company.

 

In past three trading sessions, the stock dipped 18% from Rs 1,362 on Monday, as compared to unchanged in the S&P BSE Sensex. READ MORE

3:09 PM

Who gains most from govt's spectrum cap decision?

 

The Narendra Modi-led central government on Wednesday decided to relax the cap on the amount of spectrum individual telecom service providers can hold and extended the payments tenure. The move will help ease the telecom sectors cash flow woes and aid the process of ongoing consolidation efforts.

 

Amid the pricing war in the sector, driven mainly by Reliance Jio’s disruptive run so far, the telecom market has shrunk from 15 players in 2011-12 to just four now – Telenor and Tata Teleservices have merged with Bharti Airtel, Reliance Communications is selling its assets to Reliance Jio, and Idea and Vodafone merging to unite forces. READ MORE

3:05 PM

Nomura on Bharti Airtel

In the backdrop of an 11-15% ARPU cut in bestselling bucket tariff plans in January, the regulator’s ruling on predatory tariffs, and the 10% revenue market share of exiting operators still up for grabs, we think that the risk of further tariff cuts over the next few quarters has increased, implying a weaker near-term earnings outlook for Bharti. 

At 7.4x FY20F EV/EBITDA, the stock is not cheap vs its regional peers. That said, it does not appear to be an outlier, especially in the context of the sector’s improved earnings growth outlook and industry structure from FY20F onwards. Our revised 12-month rounded target price for Bharti of Rs 505 is the sum of the attributable share of our fair value for Bharti Infratel (Rs 82), attributable DCF value of the DTH biz (Rs 31) and DCF value of the remaining businesses (Rs 393)

3:03 PM

Where are India's rich investing? Stocks beat gold and property too

 

Wealthy Indians are buying stocks hand over fist, eclipsing the strong appetite for equities seen across the world, according to a Knight Frank study.

 

Some 95 per cent of India’s population with net assets of $50 million or more lifted their holdings in the 12 months through October, compared with the 62 per cent global average, the analysis showed. At the same time, they shunned historically favoured assets from property to gold, which ranked among the investments seeing the smallest allocation increase for India’s rich. READ MORE

2:39 PM

Gold falls Rs 220 on weak global cues, low demand

Gold prices went down by Rs 220 to Rs 31,450 per 10 grams at the bullion market today backed by a weak trend overseas amid easing demand from local jewellers at prevailing levels. READ MORE
 

2:25 PM

Brighter year ahead: analysts expect 14-21% rise in paint stocks

Share prices of most paint companies have lagged the S&P BSE Sensex in the last six months on worries over rising prices of key inputs and expectations of muted volumes, also partly reflecting in the October-December 2017 (Q3) performance. However, things are changing for the better.

 

Higher prices of titanium-dioxide, mainly due to a supply disruption in China, and crude-based derivatives — key raw materials used by paint companies — weighed on their gross profit margins in Q3. READ MORE

2:19 PM

Market Check

 

S&P BSE Sensex	33,235.88		0.61%
Nifty 50	10,195.70		0.41%
S&P BSE 200	4,452.12		0.37%
Nifty 500	8,954.40		0.20%
S&P BSE Mid-Cap	15,955.94		0.01%
S&P BSE Small-Cap	17,262.06		-0.05%