F&O Expiry: Sensex rises 157 pts, Nifty settles at 10,780 led by RIL, TCS

The benchmark indices extended their winning streak for the second consecutive day, settling nearly 0.5 per cent higher on Thursday on the expiry of December-series futures and options (F&O) contracts.

The S&P BSE Sensex ended at 35,807, up 157 points or 0.44 per cent, while the broader Nifty50 index settled at 10,780, up 50 points  or 0.47 per cent.

Among the sectoral indices, the Nifty IT index rose 1.4 per cent led by Infosys and TCS. Nifty FMCG index, too, rose, 1.3 per cent led by Marico and ITC.

The broader market indices, too, settled higher in line with the benchmark peers. The S&P BSE MidCap index rose 0.3 per cent to 15,218 level, while S&P BSE SmallCap index ended at 14,482, up 0.3 per cent.

Shares of select public sector undertaking (PSU) banks traded higher by up to 7% on the BSE in intra-day trade on hopes of central government’s bank recapitalisation announcement. Bank of Maharashtra, Central Bank of India, United Bank of India, UCO Bank, Corporation Bank and Dena Bank were up in the range of 2% to 7% on the National Stock Exchange (NSE).

The central government would release Rs 286.15 billion before the end of this month towards a fresh tranche of funds to recapitalise state-run banks, according to a source in the finance ministry.

Global Markets

Asian shares on Thursday rode a dramatic surge on Wall Street as markets, battered by a recent drum roll of deepening political and economic gloom, cheered upbeat US data and the Trump administration’s effort to shore up investor confidence.

In a buying frenzy as spectacular as the recent rout, US stocks soared with the Dow Jones Industrial Average rocketing more than 1,000 points for the first time on Wednesday. That helped push MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.6 per cent and away from eight-week lows.

Japan’s Nikkei managed to pull out of bear market territory it had entered on Tuesday, closing 3.9 per cent higher, while Australian shares jumped 1.9 per cent.
 

Oil Prices

Oil prices fell more than 1 per cent on Thursday after rebounding 8 per cent in the previous session, as worries over a glut in crude supply and concerns over a faltering global economy pressured prices even as a stock market surge offered support.

Brent crude oil was down 70 cents, or 1.3 per cent, at $53.77 a barrel. US light crude oil was 50 cents lower at $45.72.

Oil prices reached multi-year highs in early October but have fallen almost 40 per cent since then and are now approaching their lowest levels for 18 months. Brent is heading for losses of almost 30 per cent this year while the US contract has dropped almost 25 per cent.

(with Reuters input)

3:45 PM

Top sectoral gainers and losers on NSE

3:44 PM

S&P BSE Sensex: Top gainers and losers

3:34 PM

Market at close

 

The S&P BSE Sensex gained 157 points or 0.44 per cent to close at 35,807 while NSE's Nifty50 index ended at 10,780, up 50 points or 0.47 per cent. 

3:18 PM

CD Equisearch on M M Forgings

 

Recommendation: ACCUMULATE

Current price: Rs 650

Price target: Rs 719

 

M&HCV segment, which has so far remained indifferent to revision in axle load carrying norms, thereby reflecting a healthy underlying demand, is expected to witness volume growth of 18-20% during FY19 and healthy growth in next fiscal as well as India prepares to adopt the BS –VI emission norms from April 2020 onwards.

2:53 PM

Reliance Securities on State bank of India 

 

Target Price: Rs 358

  

State bank of India is the most critical Public Sector Bank of India. It is a very well managed bank among the large public sector banks which has passed the peak the NPA challenges. Credit growth is improving and we expect credit growth of 11% in FY19. The reporting quarter is likely to be very strong with reasonable credit growth and solid treasury gains as bond yields have declined sharply. Earnings are likely to see a marked jump in the quarter on account of improving operating performance and strong treasury income as compared to loss in the base quarter. SBI trades at 1.5x P/ABV which is reasonable. We value the company at Rs 358 per share based on SOTP based valuation methodology. 

2:42 PM

Top gainers on BSE500

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
JP ASSOCIATES	7.62	0.48	6.72	8001814
CENTRAL BANK	36.40	2.25	6.59	528473
BANK OF MAHA	14.90	0.92	6.58	496240
MAX INDIA	85.05	4.55	5.65	236468
PC JEWELLER	85.60	4.50	5.55	1836174

2:30 PM

Selan Exploration surges 16% as board approves share buyback proposal

Shares of Selan Exploration Technology moved higher by 16% to Rs 201 on BSE on Thursday after the board approved buyback of equity shares at a price not exceeding Rs 300 per share. The company said the buyback will be for an aggregate amount of Rs 250 million from the open market through stock exchange mechanism.

The board of directors of the company has also declared an interim dividend of 50% (i.e. Rs. 5 per equity share) for the financial year 2018-19. The record date for the purpose of the interim dividend has been fixed as January 5, 2018. Read more

 

2:19 PM

MFs' entry in commodity derivatives to set stage for more commodity ETFs

The route for mutual funds to participate in commodity derivatives is opening up. Multi Commodity Exchange has proposed to the market regulator to allow Exchange Traded Funds in commodity derivatives. The Securities and Exchange Board of India is finalising changes in Mutual Funds Regulations, allowing them formally to participate in commodity derivatives and since ETFs are run by Mutual Fund management companies, while allowing MF, the regulator should also allow ETFs. This will set the stage for allowing commodity Exchange Traded Funds. Read more

 

 

2:09 PM

ICRA has a stable outlook on Indian IT Services industry

 

The credit profile of Indian IT Services companies remains stable underpinned by its ability to sustain free cash flows despite pressure on revenue growth and

margins. With aggregate operating margins of ICRA sample set at 22.5% for FY2018 coupled with moderate capex (organic as well as inorganic) and working capital requirements, the free cash flows have remained robust historically. Despite pressures on growth and margins over the medium term, these factors are unlikely to impact the free cash flow generation ability of Indian IT Services companies though there could be moderation in the quantum of such cash flows.

2:00 PM

Asian debt defaults likely to rise on shadow banking crackdown, rate hikes

A growing chorus of observers expect debt defaults in Asia will spread as weakening currencies and tighter liquidity leave riskier borrowers with higher refinancing costs. Rising failures add to headwinds that governments have to navigate during a politically fraught 2019, with elections in India and Indonesia. Asian dollar bond market defaults tripled to at least nine in 2018 from the previous year, according to Bloomberg-compiled data. Read more

 

1:44 PM

Top gainers and losers on S&P BSE Sensex

1:32 PM

NEWS ALERT Selan Exploration board approves share buyback at maximum Rs 300/share for up to Rs 250 million

1:30 PM

Max India extends rally; surges 45% in 10 trading sessions

Shares of Max India moved higher by 11 per cent to Rs 89.60 on heavy volumes on the BSE. The stock was trading at its three-month high level and has rallied 45 per cent in past 10 trading sessions. In comparison, the S&P BSE Sensex was up 0.38 per cent during the same period. READ MORE

1:11 PM

ICRA assigns stable outlook for Indian pharma companies

 

The headwinds from pricing pressure in large regulated markets, especially USA, increased cost related to regulatory compliances but are largely offset by growing scale of business, increased focus on specialty/ niche segments and comfortable balance sheet structure. The domestic pharmaceutical industry has gained adequate scale and generic drug development capabilities over a decade of growth which will keep them in good stead to capture bigger opportunities in the regulated market. The FY2018-2021 CAGR is expected to be around 8-10 per cent for domestic pharma companies.

12:56 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,856.04	+206.10	+0.58
S&P BSE SENSEX 50	11,285.77	+63.40	+0.56
S&P BSE SENSEX Next 50	32,659.73	+149.76	+0.46
S&P BSE 100	11,075.95	+60.46	+0.55
S&P BSE Bharat 22 Index