Sensex ends over 600 points higher, Nifty above 10,400 mark on global cues

All that happened in the markets today.

The domestic indices ended nearly 2% higher on Monday, mirroring gains in their key Asian counterparts.

The S&P BSE Sensex ended at 33,918, up 611 points while the broader Nifty50 index settled at 10,421, up 195 points. This was the biggest intra-day gain for the indices in almost a year, data show.

In the global markets, a relief rally swept across Asia on Monday after the latest US jobs report managed to impress with its strength while also easing fears of inflation and faster rate hikes, a neat feat that whetted risk appetites globally.

MSCI’s index of Asia-Pacific shares outside Japan climbed 1.3 per cent, poised for a third session of gains. Japan’s Nikkei jumped 1.6 per cent.

Inflation worries faded on Friday after US data showed nonfarm payrolls jumped by 313,000 jobs last month, but annual growth in average hourly earnings slowed to 2.6 per cent after a spike in January.

Back home, the Nifty FMCG index ended 2.62% higher on Monday, led by a rise in the shares of United Spirits, ITC and Tata Global Beverages, while the Nifty Metal index rose 2.14% as Jindal Stainless (Hisar), Jindal Steel & Power and Steel Authority of India Limited gained ground.


(with inputs from Reuters)

3:56 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

It's being an exceptional day for equity markets as Nifty gained nearly two percent and reclaimed 10400. It opened gap up, tracking firm global cues and traded range bound in the first half. However, short covering in the latter half triggered fresh momentum in the latter half and almost all the sectoral indices participated in the move.

 

It was indeed a surprise up move but sustainability above 10400 will be crucial for further recovery. Participants will react to macro-economic data i.e. IIP and CPI inflation in early trade tomorrow. We suggest traders limiting leveraged positions and continuing with stock specific trading approach

3:56 PM

MARKET COMMENT Mustafa Nadeem, CEO, Epic Research

Nifty continued the upward momentum as short-term patterns suggested the bounce to be evident. Nifty pullback seemed to be swift in last few days since momentum on dips has been followed by buying. Bank Nifty added the weight for bulls with prices retracing back to 24700 zones where it consolidated for a brief period of time.

As this rally expands, we believe the resistances will be developed to near levels of 10450 - 10460. In case prices are not able to breach these level then it will be a pullback out of the recent breakdown of the pattern. On the downside, supports are open towards 200 Days SMA at 10150 - 10200. Prices may continue for some time in sideways zone in these levels. A close above only 10650 will trigger some kind of short covering while also calling in long side momentum players. 

 

3:54 PM

NEWS IMPACT Bharti Airtel rallies on fund raising plans

 

Shares of the telecom operator rose as much as 4.86%, the most in over a month, to Rs 421.70. The Sunil Mittal-led company’s board approved the issuance of foreign currency bond of $1 billion or equivalent in one or more tranches, according to its stock exchange notification

 

3:47 PM

Nifty Metal index rises 2.14%

3:43 PM

Nifty FMCG surges 2.62%

3:39 PM

Nifty Sectoral gainers and losers

3:37 PM

BSE Sensex gainers and losers

3:36 PM

Index watch

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,917.94	+610.80	+1.83
S&P BSE SENSEX 50	10,879.19	+195.42	+1.83
S&P BSE SENSEX Next 50	32,959.91	+197.30	+0.60
S&P BSE 100	10,751.18	+173.39	+1.64
S&P BSE Bharat 22 Index	3,554.22	+65.60	+1.88

(Source: BSE)

3:33 PM

Market at close

 

The S&P BSE Sensex ended at 33,918, up 611 points while the broader Nifty50 index settled at 10,421, up 195 points.

3:16 PM

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3:12 PM

IPO CORNER Bharat Dynamics Limited

 

In terms of valuations, the pre-issue P/E works out to 22.7x 1HFY2018 annualized earnings (at the upper end of the issue price band), which is lower compared to BDL’s peers like Bharat Electron and Apollo Micro System (trading at 33.6x and 40.7x of its 1HFY2018 annualized earnings respectively). 

 

Further, BDL has a strong order book and revenue visibility, coupled with superior return ratios compared to peers. Hence, considering the above positive factors including growth in the defence industry, we recommend SUBSCRIBE on the issue.

 

(Source: Angel Broking)

3:00 PM

TOP SENSEX CONTRIBUTORS

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	CONTRIBUTION (POINTS)
ITC	269.65	10.25	3.95	261575.10	99.34
INFOSYS	1190.00	26.60	2.29	218668.11	64.18
H D F C	1851.25	32.80	1.80	193778.42	62.48
ICICI BANK	298.35	5.65	1.93	149832.07	39.62
HDFC BANK	1867.00	13.80	0.74	210795.90	32.73
BHARTI AIRTEL	419.55	17.60	4.38	44847.83	29.73

2:50 PM

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,807.97	+500.83	+1.50
S&P BSE SENSEX 50	10,844.70	+160.93	+1.51
S&P BSE SENSEX Next 50	32,827.95	+65.34	+0.20
S&P BSE 100	10,715.69	+137.90	+1.30
S&P BSE Bharat 22 Index	3,535.54	+46.92	+1.34

(Source: BSE)

2:49 PM

IPO WATCH Bharat Dynamics Limited

Bharat Dynamics Ltd (BDL) is a wholly-owned government company having a Mini-ratna (Category-1) status conferred by the Department of Public Enterprises. BDL is engaged in the manufacturing of Surface to Air missiles (SAMs), Anti-Tank Guided Missiles (ATGMs), underwater weapons, launchers, countermeasures and test equipment primarily catering to the Indian armed forces.

As of 31 Jan’18, BDL’s order book stands at Rs10,543 crore (2.2x FY17 revenue). Government’s focus on the defence sector with the introduction of favourable policies (New Defence Procurement Policy (DPP) 2016, FDI, Make in India), is likely to open many opportunities for BDL. Going forward the company is looking at focussing on R&D, enhancing its product portfolio, setting up 2 more manufacturing facilities (at Ibrahimpatnam and Amravati) and exploring international markets

(Source: Centrum Broking)

2:47 PM

CCD: Founder quits MTCL board to focus on coffee business
 

This is a good development for Coffee Day Enterprises (CCD). Reportedly, CCD founder V G Siddhartha has quite the board of Mindtree Ltd (MTCL), a mid-sized software company based in Bangalore and stated that he wishes to focus more on his coffee business. CCD and its subsidiary Coffee Day Trading collectively hold 16.55% in MTCL which is valued at Rs 22 billion as per the latest market capitalization of MTCL. V G Siddhartha owns an additional 3.36% in MTCL. CCD and V G Siddhartha bought shares in MTCL in 2011-12 from its founding Chairman Ashok Soota when he left the company (then company market cap was Rs 24 billion). 

Market rumors suggest that this may be a precursor to stake sale in MTCL by CCD and its founder. It could be a big positive in that case because it will sharply reduce the current net debt of CCD which stands at Rs 28 billion. Recently, V G Siddhartha family bought nearly 2.5% stake in CCD (held 51.3% prior to that) at market price when PE investor KKR sold. We like CCD due to its cafe business which is a market leader in India and solid investments. The stock is undervalued based on SOTP. We maintain BUY and target pirce of Rs 400.

(Source: Maybank report)