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Indices off day's high; European shares open in green

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Capital Market
Last Updated : Jan 13 2020 | 3:04 PM IST

Key benchmark indices trimmed gains in afternoon trade. Positive cues from other Asian shares, easing of crude oil prices and strengthening rupee triggered buying in domestic shares.

At 13:26 IST, the S&P BSE Sensex, rose 225.54 points or 0.54% at 41,825.26. The Nifty 50 index gained 60.85 points or 0.50% at 12,317.65.

In the broader market, the S&P BSE Mid-Cap index was up 0.76% while the S&P BSE Small-Cap index was up 0.79%.

The market breadth was strong. On the BSE, 1458 shares rose and 889 shares fell. A total of 173 shares were unchanged. In Nifty 50 index, 35 stocks advanced while 15 declined.

Macroeconomic data:

India's industrial output grew 1.8% in November against a contraction of 3.8% in October, according to the Index of Industrial Production (IIP) data released by the government. Industrial output, or factory output, is the closest approximation for measuring the economic activity of the country's business landscape.

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Manufacturing output, which accounts for more than three-fourths of the entire index, grew 2.7% in November, against a contraction of 2.1% in October. Mining production grew 1.7% against a fall of 8% a month ago.

The growth of primary products fell 0.3% against a fall of 6% last month. Production of capital goods in November saw contraction of 8.6% against a fall of 21.9% in October.

Consumer durables fell 1.5% in November against a fall of 18% last month. Electricity production fell 5% against a contraction of 12.2% in October.

Stocks in Spotlight:

Coal India (up 2.70%), Britannia Industries (up 1.69%), Hindustan Unilever (up 1.64%), Indian Oil Corporation (up 1.28%) and Wipro (up 1.27%) advanced.

Tata Motors (down 1.35%), Eicher Motors (down 1.23%), UPL (down 1.22%), Bharti Infratel (down 0.74%) and Tata Consultancy Services (down 0.81%) declined.

Infosys surged 4.47% to Rs 771.25. On a consolidated basis, net profit rose 10.9% to Rs 4,457 crore on 2% increase in revenues to Rs 23,092 crore in Q3 December 2019 over Q2 September 2019.

The company increased FY20 revenue guidance. The revised guidance is 10.0%-10.5% in constant currency higher than 9-10% estimated earlier. It maintained FY20 operating margin guidance range of 21%-23%.

Infosys said that its audit committee has found no evidence of financial impropriety or executive misconduct, giving a clean chit to CEO Salil Parekh and CFO Nilanjan Roy who were accused by anonymous whistleblowers of rigging the company's balance sheet.

Tata Steel advanced 1.21% to Rs 492.45. The company's wholly-owned Netherlands- based subsidiary, Tata Steel Netherlands Holdings BV (TSNBHV), said that it has executed agreementsfor the refinancing of its bank debt.

TSNBHV has raised term loan facilities of euro 1.75 billion from 19 banks. The fresh arrangement will enable the standalone European business to have a more robust balance sheet.

Yes Bank slumped 6.03% to Rs 42.10. The private sector bank said that its board have approved raising of funds upto Rs 10,000 crore through a mix of equity and debt and decided not to proceed with the offer from Erwin Singh Braich-SPGP Holdings. The bank will hold extra-ordinary general meeting to obtain shareholders' approval for fund raising.

Foreign Markets:

Shares in Europe opened higher while Asian stocks continued trading higher ahead of US-China trade deal that will be signed this week on 15 January 2020.

This week Wednesday, U.S. President Donald Trump and Chinese officials are due to sign the long-awaited phase one trade deal between both countries. The deal will involve some tariff relief, increased Chinese purchases of U.S. agricultural goods and changes to intellectual property and technology rules. Meanwhile, Washington and Beijing have agreed to hold semi-annual talks in targeting to resolve disputes and push for reforms.

In US, stocks ended lower on Friday, after the Dow briefly topped the 29,000 milestone, with investor euphoria over recent record highs deflated by data showing slower-than-expected US jobs and wage growth in December.

The US Labor Department said the US economy added 145,000 new jobs in December less than the 266,000 gain in the prior month. The unemployment rate, meanwhile, held near a 50-year low at 3.5%.

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First Published: Jan 13 2020 | 1:26 PM IST

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