 "Nifty ends near 7,850 on favourable macro-economic data, global cues")
Benchmark indices ended higher for the second straight session, amid firm global cues along, with index heavyweight ITC and metal shares leading the gains. However, the upside was capped due to selling pressure seen among select IT stocks.
The Sensex gained 104.37 points to end at 25,864.47 and the Nifty rose 30.95 points at 7,837.55.
The broader markets performed in line with the benchmark indices- BSE Midcap and Smallcap indices were up 0.3-0.5%. Market breadth ended marginally positive on the BSE with 1,397 shares advancing and 1,284 shares declining.
In the currency front, the rupee advanced by 10 paise to 65.90 against the dollar today on sustained selling of the American currency by exporters and banks.
MARKET VIEW
According to K Subramanyam, Co-Head Equity Advisory, Altamount Capital, “The markets are at cross roads post the Bihar elections and by and large dismal corporate results which fails to inspire sustained buying. The FII s are also in a selling mode and only some spirited support from the domestic mutual funds is absorbing the selling pressure. The near term downside does provide opportunities to investors to buy into quality stocks and some beaten down sectors like capital goods and infra sectors which are more sensitive to positive news flow. Caution is advised and high debt burden companies are best avoided. In terms of growth prospects ,media & entertainment and logistics could be in for exciting times. "
MACRO-ECONOMIC DATA
India’s merchandise exports fell for the eleventh consecutive month in October. Exports contracted 17.53 per cent to $21.35 billion in October, against $25.89 billion in October 2014, according to data released by the commerce ministry on Monday.
The trade deficit marginally narrowed to $9.77 billion last month from $10.48 billion in September, the data released by the Ministry of Commerce and Industry showed.
Finance Minister Arun Jaitley said, “The government is ready to discuss all issues with the opposition to pass a key amendment in the winter session of parliament that would pave the way for a new nationwide goods and services tax (GST)”.
GLOBAL MARKETS
Asian stocks rose across the board on Tuesday following a surge on Wall Street overnight as investors clawed back losses that came on the back of last week's Paris attacks.
Meanwhile, expectations for a December rate hike by the Federal Reserve also kept the dollar on a bullish footing.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.7%, bouncing from a 6-week low struck the previous day on risk aversion triggered by the assault on the French capital.
South Korea's Kospi was up 1.4%, Australian shares gained 1.8% and Shanghai stocks climbed 1.4%. Japan's Nikkei added 1.6%, brushing a 3-month peak.
SECTORS & STOCKS
BSE FMCG index surged over 2% followed by counters like Metal, Healthcare and Auto, all gaining by 1% each. However, BSE IT and Consumer Durables indices ended marginally lower.
The top gainers from the Sensex pack included GAIL, ITC, Hindalco, Vedanta and Tata Motors.
ITC surged almost 3%. ITC Infotech and Ramco Systems have formed a strategic partnership, which will enable the former to strengthen its aviation capabilities and expand its expertise in the human capital management domain. ITC Infotech, a leading global IT services and solutions company, is a fully owned subsidiary of ITC.
ICICI Bank on Monday said it would sell a 6% stake in its life insurance venture, ICICI Prudential Life Insurance, to Premji Invest and its affiliates, and Compassvale Investments Pte, a unit of Singapore-based Temasek, for Rs 1,950 crore. Shares of ICICI bank ended marginally positive.
On the losing side, Infosys, Dr Reddy’sLabs, Axis Bank, Bajaj Auto and Bharti Airtel were down between 1-2%.
Infosys dipped 2% at Rs 1,060, also its lowest level since September 8, 2015 on the Bombay Stock Exchange (BSE).
Reliance Inds slipped marginally. Fitch Ratings has affirmed Reliance Industries' long term foreign currency and domestic currency issuer default rating at 'BBB-' and 'BBB', respectively with stable outlook.
SMART MOVERS
Shares of tea companies were in focus and trading higher by up to 18% on the BSE on expectation that tea prices are likely to surge amid likely drop in production.
Warren Tea, Rossell India, Williamson Magor & Company, Mcleod Russel India, Jay Shree Tea, Tata Global Beverages and Bombay Burmah Trading Corporation are up 4-18%.
Shares of Mumbai-based real estate developer D B Realty and drug maker Dishman Pharmaceuticals and Chemicals have tanked up to 20% on the BSE on back of heavy volumes.
Shares of sugar makers continue to surge with 11 stocks from the sector locked in upper circuit on the Bombay Stock Exchange (BSE).
Dwarikesh Sugar, Mawana Sugars, Kesar Enterprises, Sir Shadi Lal Enterprises, Empee Sugars, Thiru Aroon Sugars, Riga Sugar, Ugar Sugar Works, SBEC Sugar, Gayatri Sugars and KM Sugar Mills have frozen upper circuit between 2%-20% on the BSE.
Dharani Sugars & Chemicals, Shree Renuka Sugars, EID Parry and Bannari Amman Sugars are among others which rallied by more than 8% on the BSE.
Shares of Shasun Pharmaceuticals and Strides Arcolab have touched their respective record highs, up 6% each on the National Stock Exchange (NSE), ahead of scheme of amalgamation of Shasun Pharmaceuticals with Strides Arcolab.
With Reuters input
The Sensex gained 104.37 points to end at 25,864.47 and the Nifty rose 30.95 points at 7,837.55.
The broader markets performed in line with the benchmark indices- BSE Midcap and Smallcap indices were up 0.3-0.5%. Market breadth ended marginally positive on the BSE with 1,397 shares advancing and 1,284 shares declining.
More From This Section
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 1,051.26 crore yesterday, as per provisional data released by the stock exchanges.
In the currency front, the rupee advanced by 10 paise to 65.90 against the dollar today on sustained selling of the American currency by exporters and banks.
MARKET VIEW
According to K Subramanyam, Co-Head Equity Advisory, Altamount Capital, “The markets are at cross roads post the Bihar elections and by and large dismal corporate results which fails to inspire sustained buying. The FII s are also in a selling mode and only some spirited support from the domestic mutual funds is absorbing the selling pressure. The near term downside does provide opportunities to investors to buy into quality stocks and some beaten down sectors like capital goods and infra sectors which are more sensitive to positive news flow. Caution is advised and high debt burden companies are best avoided. In terms of growth prospects ,media & entertainment and logistics could be in for exciting times. "
MACRO-ECONOMIC DATA
India’s merchandise exports fell for the eleventh consecutive month in October. Exports contracted 17.53 per cent to $21.35 billion in October, against $25.89 billion in October 2014, according to data released by the commerce ministry on Monday.
The trade deficit marginally narrowed to $9.77 billion last month from $10.48 billion in September, the data released by the Ministry of Commerce and Industry showed.
Finance Minister Arun Jaitley said, “The government is ready to discuss all issues with the opposition to pass a key amendment in the winter session of parliament that would pave the way for a new nationwide goods and services tax (GST)”.
GLOBAL MARKETS
Asian stocks rose across the board on Tuesday following a surge on Wall Street overnight as investors clawed back losses that came on the back of last week's Paris attacks.
Meanwhile, expectations for a December rate hike by the Federal Reserve also kept the dollar on a bullish footing.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.7%, bouncing from a 6-week low struck the previous day on risk aversion triggered by the assault on the French capital.
South Korea's Kospi was up 1.4%, Australian shares gained 1.8% and Shanghai stocks climbed 1.4%. Japan's Nikkei added 1.6%, brushing a 3-month peak.
SECTORS & STOCKS
BSE FMCG index surged over 2% followed by counters like Metal, Healthcare and Auto, all gaining by 1% each. However, BSE IT and Consumer Durables indices ended marginally lower.
The top gainers from the Sensex pack included GAIL, ITC, Hindalco, Vedanta and Tata Motors.
ITC surged almost 3%. ITC Infotech and Ramco Systems have formed a strategic partnership, which will enable the former to strengthen its aviation capabilities and expand its expertise in the human capital management domain. ITC Infotech, a leading global IT services and solutions company, is a fully owned subsidiary of ITC.
ICICI Bank on Monday said it would sell a 6% stake in its life insurance venture, ICICI Prudential Life Insurance, to Premji Invest and its affiliates, and Compassvale Investments Pte, a unit of Singapore-based Temasek, for Rs 1,950 crore. Shares of ICICI bank ended marginally positive.
On the losing side, Infosys, Dr Reddy’sLabs, Axis Bank, Bajaj Auto and Bharti Airtel were down between 1-2%.
Infosys dipped 2% at Rs 1,060, also its lowest level since September 8, 2015 on the Bombay Stock Exchange (BSE).
Reliance Inds slipped marginally. Fitch Ratings has affirmed Reliance Industries' long term foreign currency and domestic currency issuer default rating at 'BBB-' and 'BBB', respectively with stable outlook.
SMART MOVERS
Shares of tea companies were in focus and trading higher by up to 18% on the BSE on expectation that tea prices are likely to surge amid likely drop in production.
Warren Tea, Rossell India, Williamson Magor & Company, Mcleod Russel India, Jay Shree Tea, Tata Global Beverages and Bombay Burmah Trading Corporation are up 4-18%.
Shares of Mumbai-based real estate developer D B Realty and drug maker Dishman Pharmaceuticals and Chemicals have tanked up to 20% on the BSE on back of heavy volumes.
Shares of sugar makers continue to surge with 11 stocks from the sector locked in upper circuit on the Bombay Stock Exchange (BSE).
Dwarikesh Sugar, Mawana Sugars, Kesar Enterprises, Sir Shadi Lal Enterprises, Empee Sugars, Thiru Aroon Sugars, Riga Sugar, Ugar Sugar Works, SBEC Sugar, Gayatri Sugars and KM Sugar Mills have frozen upper circuit between 2%-20% on the BSE.
Dharani Sugars & Chemicals, Shree Renuka Sugars, EID Parry and Bannari Amman Sugars are among others which rallied by more than 8% on the BSE.
Shares of Shasun Pharmaceuticals and Strides Arcolab have touched their respective record highs, up 6% each on the National Stock Exchange (NSE), ahead of scheme of amalgamation of Shasun Pharmaceuticals with Strides Arcolab.
With Reuters input