MARKET WRAP: Indices rebound, Sensex climbs 239 pts, Nifty ends at 11,672

All that happened in markets today.

After oscillating between the positive and negative territory for most part of the session, key stock benchmark indices ended over half a per cent higher on Tuesday, thanks to buying in the last hour of the trade.

The S&P BSE Sensex added 238 points or 0.62 per cent to end at 38,939. During the trade, the index hit a high and low of 38,978.99 and 38,598.72, respectively. ICICI Bank, ITC, Axis Bank, HDFC, YES Bank and TCS were the major contributors to the Sensex's gain. 

In the broader market, the S&P BSE MidCap index ended at 15,420.48, up 23 points or 0.15 per cent while the S&P BSE SmallCap index ended 15 points or 0.10 per cent lower at 14,972. 

The NSE's Nifty50 index ended above the 11,650 level at 11,672, up 67 points or 0.58 per cent, with 37 constituents advancing and 13 declining.

Sectorally, all the indices except media counter ended in the green. PSU bank stocks advanced the most, followed by realty and auto stocks. The Nifty media index ended flat with the negative bias at 2,410.75, down just 5 points or 0.21 per cent. 

BUZZING STOCKS

Shares of Merck hit a new high of Rs 3,990, up 5 per cent in the intra-day trade on the BSE. The stock, eventually, settled at Rs 3,952 apiece, up 3.77 per cent. 

Panacea Biotec surged 17 per cent to Rs 213 on the BSE on Tuesday after the pharmaceutical and biotechnology company said that India Resurgence Fund (IndiaRF), a fund promoted by Piramal Enterprises and Bain Capital Credit, has invested Rs 992 crore ($144 million) in the company. Shares ended at Rs 200 apiece on BSE, up 11 per cent.

IT major Infosys hit a new high of Rs 774 during the trade before settling at Rs 760, down nearly a per cent.

Asian Paints ended over 3.50 per cent lower at Rs 1,443.50 apiece after news reports said CLSA has downgraded the stock to 'sell' with the target price of Rs 1,400 from Rs 1,565 earlier.

GLOBAL CUES

Asian shares hit an eight-month high on Tuesday as optimism about Chinese measures to boost economic growth lifted mainland markets, however, worries about U.S. earnings and a crucial Brexit summit this week limited gains.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.3 per cent, hovering near its highest level since August 9 last year. Japan’s Nikkei drifted 0.1 percent higher, while Australian shares traded a shade lower.

3:41 PM

Sectoral gainers and losers on NSE

3:41 PM

Top gainers and losers on S&P BSE Sensex

3:38 PM

MARKET AT CLOSE

The S&P BSE Sensex added 238 points or 0.62 per cent to end at 38,939 while the NSE's Nifty50 index ended above the 11,650 level at 11,672, up 67 points or 0.58 per cent.

3:10 PM

Centrum Broking on NIIT Tech

We believe measures taken by Mr Sudhir Singh have yielded positive results. NIIT Tech’s revenue growth would be at the upper end of midcap IT peers. NIIT Tech is growing at 2x the pace of Tier 1 IT vendors. We estimate NIIT Tech’s US dollar revenue growth at 17/15.4 per cent for FY19/FY20E, respectively. LTI/Mindtree and NIIT Tech could be the fastest-growing midcaps in FY19E. Retain BUY.

2:57 PM

YES Bank advances 4% after announcement of fund raising plan

YES Bank shares rose 4 per cent to Rs 270 in intra-day trade on the BSE on Tuesday after the private lender announced fundraising plan by way of issuance of equity shares. READ MORE

2:45 PM

Canara Bank gains almost 4%

2:26 PM

Q4 preview of IT sector by Reliance Securities

In our view, while revenue growth prospects for FY20E appear to be positive led by digital transformation, margin prospects assume critical importance in light of major cost headwinds in the form of wage inflation owing to talent shortage. Levers for margin defence are steadily eroding, with utilisation at reasonably high levels, INR tailwind receding and investments in the business likely to remain a constant need to scale-up digital growth. Thus, we would watch the margin picture in FY20E, and believe growth, increasing automation and higher digital pricing owing to high demand are the key levers for margin defence. Return of cash to shareholders is a theme that continues to play out, with TCS, Infosys, Wipro, HCLT, Tech Mahindra, Hexaware, Mindtree and eClerx all resorting to share buy-backs to make better usage of their cash balances. Infosys and Tech Mahindra are our Top Picks in large-cap space, while Hexaware & Sonata Software are our preferred picks in mid-cap space.

2:23 PM

NEWS ALERT | Suzlon Energy initiates stake sale in Shreyas & Aalok to Ostro

2:15 PM

Chart Check: 41 Nifty F&O stocks indicate negative divergence on RSI

Technical indicator Relative Strength Index (RSI) helps to measure the momentum of the stock. The price direction is ascertained by tracking its movement. Normally, when the prices go higher, an equal amount of rise can be seen on the indicator. When it does so, the momentum seems favorable to the stock price. READ MORE

2:10 PM

Market Check: Top gainers on BSE

IBREALEST	108.30	+11.80	+12.23
LINDEINDIA	509.20	+36.90	+7.81
ITI	104.15	+6.25	+6.38
FSL	50.90	+2.35	+4.84
MERCK	3,954.85	+146.50	+3.85

2:01 PM

Merck climbs 5% to hit a new high; zooms 161% in one year

Shares of Merck hit a new high of Rs 3,990, up 5 per cent on the BSE in the intra-day trade on Tuesday. The stock has surged 37 per cent in the past six weeks after the company announced a dividend of Rs 440 per share. In comparison, the benchmark S&P BSE Sensex has risen 7.5 per cent during the same period. READ MORE

 

1:37 PM

Ashok Leyland climbs 2.5%

1:26 PM

Asian Paints lower for third straight day; stock down 4% to Rs 1,440

Asian Paints shares were trading lower for the third straight day, down 4 per cent, at Rs 1,440 in intra-day trade on Tuesday due to higher crude oil prices, one of the key raw materials in paint manufacturing. Meanwhile, in a regulatory filing, Asian Paints said that a fire broke out at the company's paint manufacturing facility in Vishakhapatnam, Andhra Pradesh, on Tuesday afternoon. READ MORE

1:14 PM

Top losers on BSE500

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
STERLITE TECH.	196.00	-19.95	-9.24	458836
LAK. VILAS BANK	92.50	-4.85	-4.98	1484200
REL. COMM.	2.96	-0.15	-4.82	3521966
RELIANCE POWER	9.77	-0.44	-4.31	5321405
RAIN INDUSTRIES	99.25	-4.40	-4.25	70280

1:05 PM

Motilal Oswal Financial Services on Ambuja Cement

We expect Ambuja to witness muted volumes over CY18-20 with a CAGR of 5- 6% due to capacity constraints. The grinding unit of 1.8mt at Marwar Mundwa will be fully operational only in CY21. We expect EBITDA/t to improve at CAGR of 5% over CY18-20; this is after building in an improvement in industry pricing

and cost measures undertaken by the company. We value ACEM at 10x March’20 EV/EBITDA and its stake in ACC at 20% discount to market value (holding company discount) to arrive at a target price of Rs 206. Maintain Neutral.