MARKET WRAP: Indices end a tad higher ahead of RIL, HUL Q3 results

The frontline indices ended a tad higher on Thursday ahead of December quarter results from market heavyweights - Reliance Industries (RIL) and Hindustan Unilever (HUL).

The S&P BSE Sensex ended at 36,374, up 53 points or 0.15 per cent, while the broader Nifty50 index settled at 10,905, up 15 points or 0.14 per cent.

Among sectoral indices, the Nifty PSU Bank index fell 1.56 per cent weighed by State Bank of India (SBI) and Union Bank of India. The Nifty Pharma index too declined 1.37 per cent weighed by Sun Pharmaceutical Industries.

In the broader market, S&P BSE MidCap index fell 45 points or 0.30 per cent to settle at 15,142 while S&P BSE SmallCap index slipped 48 points or 0.33 per cent to end at 14,612.
 

Buzzing Stocks

Shares of Reliance Industries (RIL) ended flat at Rs 1,134 apiece on the BSE ahead of the December quarter (Q3FY19) result today. Fast-moving consumer goods (FMCG) major HUL fell 1.12 per cent to Rs 1,750 on the BSE.

Shares of Axis Bank hit a record high of Rs 679 per share, up 2 per cent on the BSE in intra-day trade, on expectations of a strong recovery in earnings, due to lower provisioning. The stock surpassed its previous high of Rs 677 recorded on September 10, 2018, in intra-day trade. The stock eventually settled at Rs 676, up 1.91 per cent.
 

Global Markets

Asian stocks nudged higher on Thursday after see-sawing through a subdued session on concerns over China's economic outlook, while an anti-climactic end to the latest chapter in the Brexit saga offered sterling a moment's peace.

Fresh news was thin on the ground leaving MSCI's broadest index of Asia-Pacific shares outside Japan up a slight 0.2 per cent. Japan's Nikkei was almost flat after dithering in both directions. China's blue-chip index recouped early losses to gain 0.4 per cent.

Oil Prices

US oil prices inched down on Thursday, with traders worried about the strength of demand in the United States after gasoline stockpiles there grew last week by far more than analysts had expected.

US West Texas Intermediate (WTI) crude futures were at $52.20 per barrel, down 11 cents, or 0.2 per cent, from their last settlement. WTI futures closed up 0.4 per cent on Wednesday. International Brent crude oil futures had yet to trade, after closing up 1.1 per cent in the previous session.

(with Reuters input)

3:53 PM

Sectoral gainers and losers of the day

3:50 PM

Gainers and losers of the day on BSE Sensex

3:35 PM

Market at close

The S&P BSE Sensex ended at 36,374, up 53 points or 0.15 per cent, while the broader Nifty50 index settled at 10,905, up 15 points or 0.14 per cent.

3:24 PM

Axis Bank hits record high; rallies 12% in two weeks

Shares of Axis Bank hit a record high of Rs 679 per share, up 2 per cent on the BSE, on expectations of a strong recovery in earnings, due to lower provisioning. The stock surpassed its previous high of Rs 677 recorded on September 10, 2018, in intra-day trade. In the past two weeks, Axis Bank has outperformed the market by surging 12 per cent, as compared to a 3 per cent rise in the S&P BSE Sensex. READ MORE

3:13 PM

Jet Airways turns volatile; up 15% from day's low on back of heavy volumes

Shares of Jet Airways turned volatile, rising 9 per cent to Rs 296 apiece in afternoon deals on the back of heavy volumes. The stock recovered 15 per cent from its early morning low of Rs 257.
 

Jet Airways opened 5 per cent lower, extending its 8 per cent decline in the previous day after the media report suggested Etihad Airways offered to invest in the debt-laden carrier at a discounted rate of Rs 150 per share. READ MORE

2:55 PM

Return on equity for Nifty firms slip to record low of 12.9% in January

The return on equity (RoE) ratio for top listed companies continues to deteriorate despite the uptick in earnings growth. The average RoE for the top 50 listed firms, which are a part of the Nifty, has declined to a record low of 12.9 per cent, against 13.6 per cent last year. The ratio was 15.5 per cent in January 2015 and 23.1 per cent in December 2007, on the eve of the big market correction of 2008. In the last one year, the index companies’ underlying earnings per share has risen 3.5 per cent from Rs 401 in January 2018 to around Rs 415 now. Read more

 

2:44 PM

Top gainers and losers on S&P BSE Sensex

2:31 PM

SBI says Jet's lenders discussing airline's restructuring plan

State Bank of India (SBI) on Thursday said lenders to Jet Airways Ltd are considering a plan toward resolving the airline's debt woes, amid increasing prospects of a bailout by major shareholder Etihad Airways. The statement elaborates on Jet comments made on Wednesday, in which the airline said a plan, involving a cash injection by stakeholders and board changes, was under discussion. Read more

2:24 PM

Federal Bank dips 5% post December quarter earnings

Shares of Federal Bank were trading 5 per cent lower at Rs 87 apiece, falling 7 per cent from the intra-day high of Rs 93 on BSE after it reported a mixed set of numbers for December 2018 quarter (Q3FY19). The stock was the largest loser among the Nifty Bank index. The private sector lender’s gross non-performing assets (NPA) as a percentage of total loans were 3.14 per cent at the end of December, compared with 3.11 per cent in the preceding quarter, and 2.52 per cent a year earlier. Read more

2:12 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,211.88	-109.41	-0.30
S&P BSE SENSEX 50	11,361.77	-30.64	-0.27
S&P BSE SENSEX Next 50	32,611.04	-120.25	-0.37
S&P BSE 100	11,137.64	-31.65	-0.28
S&P BSE Bharat 22 Index	3,449.57	-12.55	-0.36

1:59 PM

FPIs hike stake in gold loan companies Muthoot, Manappuram Finance in Q3

Foreign portfolio investors (FPIs) are accumulating equity shares of gold loan companies, as they increased their holdings in Muthoot Finance and Manappuram Finance for the second consecutive quarter on expectations of healthy growth going forward. In Manappuram Finance, FPIs bought an additional 1.26 percentage point stake to 39.44 per cent during the October-December quarter (Q3FY19). They hold 38.18 per cent stake in the company at the end of the September quarter (Q2FY19). Read more

1:44 PM

Top losers on BSE500

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
MOTIL.OSWAL.FIN.	646.70	-34.60	-5.08	11950
GATEWAY DISTR.	113.20	-6.05	-5.07	5787
RELIANCE INFRA.	299.55	-15.10	-4.80	289095
FEDERAL BANK	87.10	-4.30	-4.70	1738521
TV18 BROADCAST	36.35	-1.70	-4.47	286987

1:29 PM

Sebi allows mutual funds to write call options under certain conditions

The Securities and Exchange Board of India (Sebi), in a circular on Wednesday, said that mutual funds (MFs) may write call options under a covered call strategy.

 

Covered calls are a strategy in which an investor holds a long position in an asset and sells call options on that same asset to generate an income. A call option is a contract where the holder has the right, but not the obligation to buy the underlying asset. READ MORE

1:11 PM

Q3 results preview: RIL net seen rising a tad on higher petchem earnings

Mukesh Ambani-led Reliance Industries (RIL) is expected to take a further hit on its gross refining margins (GRM), which have touched a multi-year low for the quarter ended December 2018.

 

Overall profit of the company is expected to see a marginal year-on-year (Y-o-Y) growth with higher petrochemicals earnings. RIL will announce its results for the December 2018 ended quarter on Thursday. READ MORE

RIL is valued at $91 billion (Rs 6 lakh crore)

1:00 PM

After dull 2018, no silver lining in market cap for metals sector

Most metal and mining stocks saw significant erosion in their market capitalisation in 2018, with the representative index — the S&P BSE Metal — losing almost a fifth of its previous levels. Global trade uncertainty, volatility in the sector and a fall in base metal prices had hurt sentiments. So has increase in raw material prices, especially in the energy sector.

 

Fears of slowing demand from China led to lower prices in the October-December quarter (Q3). This will have a negative impact on the profitability of most players. READ MORE