Nifty ends 1.2% higher, Sensex up 352 points; auto, realty indices gain

All that happened in the markets today

Benchmark indices ended higher with Sensex ending over 350 points higher while Nifty ending firmly above 10,150-mark, bouncing back after two days of losses on Thursday, led by banking, telecom, metal and auto stocks.

Lenders such as State Bank of India on expectations that the government would soon reveal details of a recapitalisation plan. Reserve Bank of India Governor Urjit Patel said on Wednesday the government would “in coming days” detail how it plans to inject an announced $32 billion into state-run lenders, which was announced in October.

Meanwhile, an RBI order mandating banks to lower the merchant discount rate they charge on debit cards did not affect sentiment.

However, broader gains were capped ahead of elections in the western state of Gujarat due this weekend, in a critical test for Prime Minister Modi.

Globally, Asian shares hovered above two-month lows as some high-tech bellwethers bounced back after a searing sell-off although softer oil and copper prices and uncertainty over US policy kept many investors cautious.

3:50 PM

Market rundown by Vinod Nair, Head of Research, Geojit Financial Services

 

"Market smartly recouped from the yesterdays losses which was triggered by RBIs hawkish policy and weakness in global market. However, RBI reiterating an economic growth of 6.7% for FY18 uplifted the sentiment. Upcoming state election in Gujarat and rupee movement against dollar ahead of US tax reform will be keenly watched for further momentum in the market."

3:49 PM

Nifty Auto gained nearly 2%

Source: NSE

3:43 PM

Stock in News

Airtel up 6% after the company joined hands with Intex to launch a range of affordable 4G smartphones starting at Rs 1,649

3:42 PM

Realty index rebounds after falling 4 sessions

Source: NSE

3:40 PM

Sectoral Trend: All indicesended the day in green

Source: NSE

3:38 PM

Top Sensex gainers and losers

Source: BSE

3:36 PM

Broader Markets

Broader markets outperformed the benchmark indices a bit with BSE Midcap and BSE Smallcap up 1.4% and 1.3% respectively

3:34 PM

Markets at close

Benchmark indices ended higher with Sensex ending over 350 points higher while Nifty ending firmly above 10,150-mark, bouncing back after two days of losses on Thursday, led by banking, telecom, metal and auto stocks.

The S&P BSE Sensex ended at 32,949, up 352 points while the broader Nifty50 settled at 10,166, up 122 points

3:20 PM

DLF, Gail, Maruti Suzuki hit 52-week high

 

DLF, Den Networks, Cyient and ISGEC Heavy Engineering are among 10 stocks from the S&P BSE 500 index hit their respective 52-week highs on the BSE in intra-day trade after nearly one percentage point gain in the benchmark Sensex. 

 

Of these 10 stocks,Gail (India), Maruti Suzuki India, TVS Motor Company, Aegis Logistics, Biocon and KEC International have touched their respective record highs on Thursday. READ MORE

3:10 PM

Promoters offload shares to pare debt

 

Promoters of five companies - Bharti Infratel, Escorts, McLeod Russell India, Relaxo Footwear and Action Construction Company - have sold equity shares worth nearly Rs 4,000 crore through open market transactions in the past three weeks to cut debt in their respective company's books. 

 

According to disclosures made by the companies to the stock exchanges, institutional investors led by foreign portfolio investors (FPIs) have bought these shares. Experts attribute this to buoyant markets that have provided an opportunity to promoters to raise funds via stake sale. Read More

3:00 PM

Land Rover, Range Rover drive JLR sales up 10% to 52,332 units in Nov

 

Tata Motors-owned Jaguar Land Rover (JLR) today reported 10 per cent increase in retail sales at 52,332 units in November as compared with the same month last year.

 

The company said sales during the month were primarily driven by the introduction of the new Land Rover Discovery and the Range Rover Velar. Read More

2:48 PM

Sebi proposes to allow MFs and portfolio managers in commodity derivatives

 

Market regulator Securities and Exchange Board of India (Sebi) has proposed to permit Mutual Funds (MFs) and portfolio managers (PMs) to participate in the exchange-traded  commodity derivatives market. Sebi on Thursday issued a consultation paper seeking public views on this proposal, besides how they should be allowed and what regulatory framerwork should be put in place for this.

 

This is the second move by Sebi to allow institutional participants in commodity derivatives. Earlier, the regulator had allowed category-3 alternative investment funds or hedge funds. 

 

The latest proposal of allowing MFs and PMs will be the second in the direction of broad-basing the commodity derivatives segment to improve liquidity and include institutional players.  READ MORE

2:29 PM

Avenue Supermarts, Tech Mahindra gain after block deals

 

Shares of Avenue Supermarts, which owns and operates D-Mart retail chain, and IT consulting & software company Tech Mahindra have moved higher by upto 6% on the bourses after the huge block deals executed on these counters.

 

Tech Mahindra was up 5% at Rs 497, bouncing back 6% from early morning low on the National Stock Exchange (NSE). Till 01:51 PM; around 6.35 million equity shares representing 0.65% stake in the company changed hands on the NSE, the exchange data shows. Read More

2:12 PM

Sectoral Trend

Source: NSE

1:54 PM

HEDGING STRATEGIES AHEAD OF THE GUJARAT ELECTION OUTCOME

 

Depending on the election result outcome Nifty may swing wildly on either side. More over Nifty has moved up by 23% in the current year 2017 till now, so it’s always advisable to hedge your portfolio ahead of the big event like Gujarat election outcome. However one should keep in mind, hedging always comes with cost. If you hedge your portfolio, and market rises, you will lose only to the extent of premium paid while value of your portfolio will rise along with the markets.

 

Strategy 1) Buy Nifty December 10000 Put @115

 

Strategy 2) Buy Nifty December 10000 Put @115 and Simultaneously sell 9700 Put at Rs 40.

(BEAR PUT SPREAD STRATEGY)

(HDFC Securities Report)