MARKET WRAP: Sensex snaps 2-day losing streak, ends 181 pts up; PSBs rally

The domestic equity indices snapped out of a two-session losing streak to settle 0.5 per cent higher on Friday led by a rise in public sector banks and metal stocks.

The S&P BSE Sensex ended at 35,695, up 181 points or 0.51 per cent, while the broader Nifty50 index settled at 10,727, up 55 points or 0.52 per cent. On a weekly basis, the S&P BSE Sensex fell 1.05 per cent, while the Nifty 50 declined 1.22 per cent.

In the broader market, the S&P BSE MidCap index rose 0.48 per cent or 72 points to end the day at 15,148, while the S&P BSE SmallCap settled at 14,592, up 0.14 per cent or 20 points on Friday.

Among sectors, the Nifty PSU Bank rose the most on Friday, gaining 2.32 per cent led by Syndicate Bank, Punjab National Bank (PNB) and State Bank of India (SBI). Nifty Metal too, rose 1.40 per cent led by Jindal Steel & Power, Vedanta and Tata Steel.

Buzzing Stocks

Shares of Page Industries ended lower for the fourth straight day on Friday. The stock slipped as much as 4 per cent to Rs 22,550 in the intra-day deals, hitting a nine-month low on the BSE. The stock eventually closed 3.88 per cent lower at Rs 22,676.

Shares of Ashok Leyland plunged to their 18-month low of Rs 95.95 apiece, dipping 2 per cent on the BSE in intra-day, and extending their 4 per cent fall in the past two days after recording weak December sales numbers. The stock of commercial vehicles (CV) manufacturer traded at its lowest level since July 3, 2017. It eventually ended the day at Rs 96.80, down 1.33 per cent.

Rupee

The rupee traded on a firm note having risen to 69.75 against the US dollar in intra-day trade. The domestic unit had settled at 70.17 against the greenback on Thursday.

Global Markets

Asian shares found a crumb of comfort on Friday as Beijing announced a new round of trade talks with Washington, though recession fears still had markets betting the next move in U.S. interest rates might be down.

MSCI’s index of Asia-Pacific shares outside Japan edged up 0.4 per cent but was still down 1.8 percent at the end of another rough week.

(with Reuters input)

3:37 PM

Top sectoral gainers and losers on NSE

3:37 PM

S&P BSE Sensex: Top gainers and losers

3:34 PM

Market at close

 

The S&P BSE Sensex gained 181 points or 0.51 per cent to settle at 35,695 while NSE's Nifty50 index added 55 points or 0.52 per cent to close at 10,727.

3:22 PM

Page Industries hits 9-month low; down 10% in four days

Shares of Page Industries were trading lower for the fourth straight day on Friday. The stock was down 4 per cent at Rs 22,550, hitting nine-month low on the BSE. READ MORE

3:20 PM

India's October-December sugar output rises 6.7 percent on year as mills start early: trade body

Indian sugar mills produced 11.05 million tonnes of the sweetener between Oct. 1 and Dec. 31, up 6.7 percent from a year earlier, as mills started crushing earlier than usual in the western state of Maharashtra, a producers' body said on Friday.

 

Maharashtra, the country's second-biggest producer, churned out 4.4 million tonnes of sugar during the period, up 14.6 percent from a year ago, the Indian Sugar Mills Association (ISMA) said in a statement. READ MORE

3:16 PM

Edelweiss MF in lead for govt's debt ETF on group backing, lower fee

Edelweiss Mutual Fund (MF) has emerged as the front-runner in the bid to manage India’s first debt exchange traded fund (ETF), which will have a portfolio of debt papers of the central public sector entities. Edelweiss MF is awaiting written confirmation from the government and declined to comment. READ MORE

3:03 PM

3 things that make India's path to becoming fifth largest economy harder

India’s economy grew at a faster pace than most major nations in 2018, and this year, it’s poised to overtake the UK to become the world’s fifth-biggest.

 

But that journey won’t be smooth. The outcome of a general election due by May is a potential pitfall for a nation already battered by emerging market turmoil and a currency rout last year. READ MORE

2:57 PM

NEWS ALERT | Bank of China cuts bank's reserve requirement ratio by 1 percentage point

2:54 PM

Web Exclusive Is correction in Bank Nifty a buying opportunity? Here's what charts say

The Nifty Bank has corrected 1.85 per cent from its recent high of 27,430 in the last four trading sessions whereas the frontline indices Nifty50 and BSE Sensex have fallen over 2.50 per cent during the same window. Both the benchmark indices Sensex and Nifty today breached their Thursday's low of 10,661 and 35,475, respectively. However, Nifty Bank has reversed from yesterday's low of 26,923. Read more

2:42 PM

Top gainers and losers on S&P BSE Sensex

2:41 PM

NEWS ALERT | DHFL gains after making interest payment due on January 4

2:29 PM

Oil prices rise by more than 1 percent on China-U.S. trade talks, OPEC cuts

Oil prices rose by more than 1 per cent on Friday, shaking off earlier losses, after China said it would hold talks with the US government on Jan. 7-8 to look for solutions to a trade dispute between the world's two biggest economies. Brent crude futures were at $56.60 per barrel, up 65 cents, or 1.2 per cent, from their last close. US West Texas Intermediate (WTI) crude oil futures were at $47.61 per barrel, up 52 cents, or 1.1 per cent. Click here to read more

 

2:17 PM

Motilal Oswal on Tata Power

 

CMP: Rs 74 

TP: Rs 72  

Rating: Neutral

 

While we were already factoring in the continuation of the PPAs, the development removes uncertainty. The  regulator has directed the implementing agency to monitor the progress of upcoming transmission lines in Mumbai and submit a quarterly progress report. It wants to ensure that such limitation does not arise again when the PPA comes up for renewal after five years. We maintain our Neutral rating on Tata Power with an SOTP-based TP of Rs 72/share.

2:15 PM

Motilal Oswal on Marico

 

CMP: Rs 378 

TP: Rs 465  

RATING: Buy 

 

Three factors underpin our confidence on Marico’s earning prospects: (a) likely benign raw material environment over the next 18-24 months (Copra accounts for 40-50% of material costs), (b) strong performance of Parachute volumes in recent quarters and healthy growth prospects in the VAHO segment, and (c) good traction being witnessed on new product development.

 

From a medium-term perspective, particularly if new products yield 7-8% of sales, we believe Marico is one of the few companies that can give 60-70% returns over the next 2-3 years. Maintain Buy.

2:11 PM

Motilal Oswal on Automobiles

 

Near-term headwinds notwithstanding, our preference remains for PVs over CVs/2Ws due to their stronger volume growth and a stable competitive environment. Our top picks in autos are MSIL and MSS among large caps, and ENDU and EXID among midcaps. We also consider MM as the best proxy to play the rural theme. 

All auto segments faced demand headwinds in 3QFY19 on account of increased cost of ownership due to
(a) rising fuel costs,
(b) an increase in insurance cost and
(c) higher cost of financing.
Moreover, stress at the farm level and consequent weak rural sentiment led to lowest festive sales in 4-5 years, particularly in 2Ws/PVs.