MARKET WRAP: Sensex up 155 pts, Nifty ends at 10,772 led by IT, realty stks

The benchmark indices ended nearly 0.5 per cent higher on Monday led by a rise in information technology (IT) and realty stocks.

The S&P BSE Sensex ended at 35,850, up 155 points or 0.43 per cent, while the broader Nifty50 index settled at 10,772, up 44 points or 0.41 per cent.

Among the sectoral indices, the Nifty IT rose 1.1 per cent led by MindTree, Infosys and Tata Consultancy Services (TCS). The Nifty Realty, too, rose 1.2 per cent led by Godrej Properties and Sobha.

Shares of real estate companies had rallied up to 20 per cent on the BSE in intra-day trade on hopes of cut in the goods and services tax (GST) rate for under-construction and finished houses to 5 per cent.

Among individual stocks,  Bandhan Bank and Gruh Finance fell around 5 per cent on the BSE amid reports of a merger between the two. According to media reports, Bandhan Bank and Housing Development Finance Corporation (HDFC)-controlled Gruh Finance are set to merge through a share swap deal. Bandhan Bank fell 5.2 per cent to end the day at Rs 501 on the BSE. The stock traded lower for the fourth straight day. Gruh Finance slipped 4.5 per cent to settle at Rs 304.

In the broader markets, the S&P BSE MidCap index settled at 15,152, up 5 points or 0.03 per cent while S&P BSE SmallCap index rose 9 points or 0.06 per cent to end at 14,601.
 

Global Markets

Asian shares sped ahead on Monday as a dovish turn by the Federal Reserve and startlingly strong U.S. jobs data soothed some of the market’s worst fears about the global outlook. 

Shanghai blue chips rose 0.4 per cent, having already climbed over 2 per cent on Friday. MSCI’s broadest index of Asia-Pacific shares outside Japan put on 1.3 per cent. Japan’s Nikkei shot up 2.8 per cent, while South Korea added 1.2 per cent.

Oil Prices

Oil prices rose by more than 1.5 per cent on Monday on hopes that talks in Beijing can resolve a trade war between the United States and China, while supply cuts by major producers also supported crude.

Brent crude futures were at $58.04 per barrel, up 98 cents, or 1.7 per cent, from their last close. US West Texas Intermediate (WTI) crude oil futures were at $48.85 per barrel, up 89 cents, or 1.9 per cent.

(with Reuters input)

4:00 PM

Sectoral gainers and lsoers of the day

3:58 PM

Gainers and losers on BSE Sensex

3:35 PM

Market at close

 

The S&P BSE Sensex ended at 35,850, up 155 points or 0.43 per cent, while the broader Nifty50 index settled at 10,772, up 44 points or 0.41 per cent.

3:14 PM

AGC Networks zooms nearly 100% in four weeks

Shares of AGC Networks surged 20 per cent to Rs 118.40 apiece on Monday, zooming nearly 100 per cent in past four-weeks, on back of heavy volumes.

The stock of IT consulting and software firm rallied 97 per cent from Rs 60.20 since December 10, 2018. In comparison, the S&P BSE Sensex was up 3 per cent during the same period. READ MORE

3:01 PM

Cash-starved NBFCs, HFCs raise Rs 73,000 cr in Q3 by securitising SME loans

In urgent need of funds, non-banking finance companies (NBFCs) and housing finance companies (HFCs) sold retail and SME loans worth Rs 73,000 crore in October-December 2018 mostly to banks through securitisation, according to rating agency Icra.

 

The liquidity from the market almost froze in the aftermath of defaults by IL&FS and group firms in the second quarter ended September 2018. This forced Non-banking finance companies and HFCs to liquidate part of their existing loans to generate funds to meet redemption requirements and also partly finance growth in future, analysts said. READ MORE

2:51 PM

Top gainers on S&P BSE Sensex

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
DISH TV	41.30	2.20	5.63	1683978
REPCO HOME FIN	417.00	22.00	5.57	76174
RELIANCE POWER	29.15	1.45	5.23	1916010
GODREJ PROPERT.	714.00	34.85	5.13	48392
INDBULL.REALEST.	91.30	4.40	5.06	702698

2:40 PM

To bridge fiscal deficit, RBI likely to pay govt $5.8 bn interim dividend

The Reserve Bank of India (RBI), having changed management last month following a clash with the government, is likely to transfer an interim dividend of Rs 300-400 billion ($4.32 billion-$5.8 billion) to the government by March, according to three sources with direct knowledge of the matter.

 

The dividend could help Prime Minister Narendra Modi's administration bridge a widening budget deficit following a drop in tax collections, and would come after the government pushed the RBI for the additional funds ahead of a national election due by May. Read more

 

2:30 PM

Top gainers and losers on S&P BSE Sensex

2:29 PM

Web Exclusive Chart Reading: Nifty Realty climbs 2%; top stocks to watch out for

 

NIFTY REALTY INDEX was trading 2.46 per cent higher at 241.60 levels in the intra-day trade on Monday. HDIL gained 10 per cent while Indiabulls Real Estate climbed 5.60 per cent. DLF and Godrej Properties soared around over 4.50 per cent each. Click here to read more

2:19 PM

Motilal Oswal on ITC

 

Cigarettes are a likely candidate for the cess, which has been spoken about for some time but clarity on the rate has only emerged now. The cess at 1% is moderate and lower than fears. It is, thus, a small positive for ITC. There has been no GST hike on cigarettes since July 2017, which has led to some stability on volumes and there were fears that the Kerala cess would be the first opportunity to increase rates sharply. Nevertheless, increase in GST, possibly even a sharp one given the time period elapsed since the last increase, remains a possibility in the next few months. The Advalorem overhang also remains, which, unlike per stick GST, can't be passed on effectively to maintain cigarette EBIT growth in high-single-digits. We have a Neutral rating on the stock.

 

2:18 PM

Motilal Oswal on Titan Company

 

While we are cognizant of valuation concerns surrounding consumer and retail stocks, we believe that valuations will continue sustaining at premium levels for companies offering the highest visibility in their near-, medium- and longer-term earnings. Revenue growth opportunity of 20% is immense and far superior to peers. Also, the margin trajectory appears to be on an uptrend, as revenue is being driven by SSSG. We, thus, believe that TTAN is one of the few companies in the consumer/retail sector that is least vulnerable to further sectoral multiple contractions, justifying high valuations. We value the stock at 47x Dec’20E EPS (~10% premium to three-year average) to arrive at a TP of Rs 1,125. Buy.

 

2:13 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,980.16	+285.06	+0.80
S&P BSE SENSEX 50	11,299.96	+80.79	+0.72
S&P BSE SENSEX Next 50	32,674.75	+104.04	+0.32
S&P BSE 100	11,088.85	+73.11	+0.66
S&P BSE Bharat 22 Index	3,471.30	+20.66	+0.60

2:12 PM

NEWS ALERT| Essar Global has repaid Rs 6300 crore to ICICI Bank, Axis Bank and StanChart, according to TV reports

2:00 PM

Won't like banking system to be in a situation of loose money: RBI Governor

The Reserve Bank of India (RBI) will not like the banking system to be in a situation of "loose money", Governor Shaktikanta Das said on Monday after a meeting with representatives of small- and medium-sized businesses. The RBI is also looking at new governance reforms for state-owned banks but will not "throttle" their functioning, Das told reporters. READ MORE

RBI Governor Shaktikanta Das at the press conference in Mumbai | Photo: Kamlesh Pednekar

1:45 PM

Devangshu Datta Lighten up equity portfolio

The randomness of stock market returns can be illustrated by long time-series. In the 20 years since January 1999, the Nifty had seven years of net losses. It also had three big years when it gained over 50 per cent. In 10 years, it gained, with annual returns somewhere between 1-15 per cent.

 

In January 1999, the Nifty was at trading around 900. It is now in the 10,750 range. This means the compounded return for this period is around 13.25 per cent. READ MORE