MARKET WRAP: Sensex up 137 pts, Nifty ends at 10,967 led by PSU banks, FMCG

The benchmark equity indices continued their winning streak for the seventh session in a row, settling around 0.5 per cent higher on Wednesday led by buying in public sector banks and fast-moving consumer goods (FMCG) stocks.

The S&P BSE Sensex ended at 36,484, up 137 points or 0.4 per cent, while the broader Nifty50 index settled at 10,967, up 59 points or 0.5 per cent.

Among sectoral indices, the Nifty PSU Bank index ended 2.9 per cent higher led by Vijaya Bank and Bank of India after TV reports suggested that Allahabad Bank, Bank of India and Bank of Maharashtra may come out of PCA soon. The Nifty FMCG index, too, rose 1.3 per cent led by Jubilant Foodworks and Dabur India.

In the broader market indices, the S&P BSE Midcap index rose 1.5 per cent to end at 15,519 levels, while S&P BSE Smallcap index settled at 14,765 levels, up 1.1 per cent.

Rupee

The rupee traded on a firm note during the day, breaching the 70-mark against the US dollar to hit 69.86 in intra-day trade. This was the first time rupee breached the 70-mark since December 3. However, the domestic currency trimmed its gains in afternoon deals and was last seen hovering around 70.43 level against the greenback.
 

Global markets

Asian share markets played second string to bonds on Wednesday as a spectacular fall in the price of oil spurred speculation the US Federal Reserve might be done with tightening after its policy meeting later in the session.

US President Donald Trump on Tuesday further sought to pressure the Federal Reserve as the central bank prepared to start its two-day policy meeting, warning the Fed's board not to "make yet another mistake" ahead of an expected interest rate hike.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.4 per cent, while Shanghai blue chips were flat. Japan’s Nikkei steadied after an early dip and E-Mini futures for the S&P 500 added 0.4 per cent.

Oil Prices

Oil stabilised on Wednesday after one of its biggest falls for years but remained under pressure from oversupply and concern that a slowing global economy would depress demand for fuel.

Benchmark Brent crude oil was up 30 cents at $56.56 a barrel, after dropping 5.6 per cent on Tuesday and at one point hitting a 14-month low. US light crude was 20 cents higher at $46.44, after plunging 7.3 per cent in the previous session when it touched its lowest since August 2017.

(with Reuters input)

4:01 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

 

The bulls continued to dominate as the equity benchmark indices registered seventh straight session of healthy gains, largely led by sharp appreciating rupee (vs USD), declining crude oil prices and supportive global cues. The Nifty index traded on a firm note throughout the session and ended with healthy gains of 0.5% at 10,967 levels. The broader market indices ‘BSE-Midcap’ and ‘BSE-Smallcap’ outperformed the benchmark and closed higher by 1.5% and 1%, respectively. Barring IT, which witnessed selling pressure, all the other sectoral indices witnessed healthy buying with Auto, Realty, Power, FMCG and Oil & Gas being the top gainers in range of 1-3%.

 

We expect some consolidation in the Indian markets at higher levels, due to lack of fresh positive domestic triggers and uncertain global cues. Market participants would keep close watch on the outcome of today’s US Fed meet and also GST meet outcome scheduled on Saturday. Further, movement of crude oil prices, currency and global developments would be tracked. We reiterate our view of maintaining stock specific trading approach and focus more on position management.

3:40 PM

Top sectoral gainers and losers on NSE

3:40 PM

S&P BSE Sensex: Top gainers and losers

3:35 PM

Market at close
 

The S&P BSE Sensex added 137.25 points or 0.38 per cent to settle at 36,484 while NSE’s Nifty50 index closed at 10,967, up 59 points or 0.54 per cent. 

3:23 PM

NEWS ALERT | Allahabad Bank, Bank of India and Bank of Maha may come out of PCA soon, say TV reports; stocks jump up to 10%

3:16 PM

WHERE TO INVEST IN 2019? STOCK IDEAS FROM EPIC RESEARCH

Top 5 stocks which are worth a buy with a time horizon of one year for 2019.

 

 

1.       Federal bank – CMP: 91, Target: 125 – 140, SL: 70

 

The stock is in a bullish trend, longer term, and recent correction in stock is an opportunity to enter the longer term trend hence utilizing the correction for a continuation move. The risk-reward looks favorable at this juncture of price action. 

 

2.       UPL Ltd – CMP: 760, Target: 950, SL: 700

 

The stock has ended its short-term correction on higher timeframe while prices are coming out of the recent correction phase and continue its long term. A positive cross in long-term MA's indicates the strength in trend and we believe it is an opportune moment to create long side position in the stock,

 

3.       Raymond – CMP: 852, Target: 1140, SL: 720

 

A breakout from a declining channel which was almost seen for a year makes stock healthy at current levels. Given its overall formation of higher highs and lows establishes recent trough as a viable support and gives an indication for higher targets of 1140 - 1150.

 

4.       Yes Bank – CMP: 179, Target: 254, SL: 144

 

The stock has corrected a lot from its all-time peaks and has seen the worst correction in the last 8 years since the financial crisis. A long-term established support line coincides with our support level established at 150 levels while a range-bound consolidation in last few weeks indicates a bottoming out formation. Stock can be accumulated with the defined risk of 144 and target of 254.

 

5.       PFC – CMP: 90.5, Target: 135, SL: 65

 

The stock is in a sideways range since last 10 years establishing the lower range as around 70 and higher range around 160. A cyclic analysis makes this stock an investment bet for a year with lower support at 65 acting as a risk and range of 70 - 80 as a buying opportunity for the target of 135.

(All prices in Rs; SL = Stop Loss; CMP = Current Market Price)

3:05 PM

Oil Check

Oil stabilised on Wednesday after one of its biggest falls for years, but remained under pressure from oversupply and concern that a slowing global economy would depress demand for fuel.

 

Benchmark Brent crude oil was up 30 cents at $56.56 a barrel, after dropping 5.6 per cent on Tuesday and at one point hitting a 14-month low. US light crude was 20 cents higher at $46.44, after plunging 7.3 per cent in the previous session when it touched its lowest since August 2017.

2:50 PM

DHFL exits mutual fund industry by selling 50% stake in DHFL Pramerica

 

Dewan Housing Finance Corporation (DHFL) on Tuesday announced that it was exiting from the mutual fund (MF) industry by selling its 50 per cent stake in DHFL Pramerica MF to its joint venture partner Pramerica. READ MORE

2:42 PM

Asian business confidence wallows near 3-year low on trade war worries

 

A very cautious optimism remains among Asian companies in the fourth quarter as they wait to see whether there will be any breakthrough in a trade dispute between the United States and China, a Thomson Reuters/INSEAD survey showed. READ MORE

2:31 PM

NEW ALERT | KEC Int'l bags orders worth Rs 14.91 billion; stock up 2%

2:24 PM

BNP Paribas sets 2019 Sensex target at 40,000, but stays wary on earnings

 

BNP Paribas expects the benchmark Sensex to climb to 40,000 next year, implying a 10 per cent upside from current levels. The France-based investment bank, however, has a neutral stance on the Indian markets as the "earnings environment, unlike the macro-economy, hasn't revived yet". China, South Korea, Indonesia and Thailand are the Asian markets BNP Paribas is overweight on. While it has an underweight stance on Taiwan, Malaysia and the Philippines. Read more

2:10 PM

Capital First, IDFC Bank up 6% on completion of merger

Shares of Capital First (Rs 600) and IDFC Bank (Rs 43.40) were up 6% each on the BSE after these companies informed about the completion of their merger following the receipt of all requisite shareholder and regulatory approvals. The merged entity will be called IDFC First Bank, subject to shareholders’ approval.

In past one week, Capital First and IDFC Bank have rallied 15% each after the National Company Law Tribunal (NCLT) approved their merger. In comparison, the S&P BSE Sensex was up 2% during the same period. Read more

 

1:59 PM

Nifty Realty index is trading 2.76% higher

1:57 PM

Top gainers and losers in S&P BSE Sensex

1:51 PM

Web Exclusive Top eight myths about investing in stock markets and how to overcome them

For a long time, the stock markets were considered to be a club for the wealthy and the enterprising. That emanated from the old wisdom that gentlemen preferred bonds. There are a lot more flexible and even small retail investors feel a lot more comfortable. Understanding how to invest in share markets is all about dispelling popular myths about share markets. Myths are, typically, based on half-baked knowledge and incorrect understanding of the nuances of the share market. Here are eight such myths which you need to dispel before investing in equities. Read more