Key market barometers extended Wednesday's gains and ended near the day's high on Thursday. The Nifty ended above 12,250 mark. Good manufacturing PMI data for December lifted investors' sentiment.
The barometer index, the BSE Sensex, rose 331.85 points or 0.80% to 41,637.87, as per the provisional closing data. The Nifty 50 index rose 100.45 points or 0.82% to 12,282.95, as per the provisional closing data.
In the broader market, the S&P BSE Mid-Cap index advanced 1.21% while the BSE Small-Cap index gained 1.43%.
The market breadth was strong. On BSE, 1727 shares advanced while 765 shares declined. A total of 169 shares were unchanged. In Nifty 50 index, 23 stocks advanced and 27 stocks declined.
Macros:
The headline seasonally adjusted IHS Markit India Manufacturing PMI rose to 52.7 in December, from 51.2 in November. The number pointed to the joint-strongest improvement in the health of the sector for ten months. However, owing to a weak performance in October and November, the average quarterly reading for Q3 FY19/20 was the lowest since the three months to September 2017.
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Factories benefited from a rebound in demand, and responded by scaling up production to the greatest extent since May. There were also renewed increases in input purchasing and employment during December. However, the degree of optimism signalled at the end of 2019 was the weakest in just under three years, reflecting concerns over market conditions, which could restrict job creation and investment in the early part of 2020. At the same time, price indicators showed accelerated rates of inflation for both input costs and output charges. The latter reflected a combination of improved pricing power, given the favourable demand environment, and efforts to protect margins from cost rises, Pollyanna de Lima, principal economist at IHS Markit, said.
Buzzing Sector:
The Nifty Metal index advanced 2.68% to 2,871, outperforming other sectoral indices on the NSE.
Hindustan Copper (up 19.93%), NALCO (up 6.24%), Tata Steel (up 3.57%), Vedanta (up 3.33%), JSW Steel (up 3.11%), Hindalco Industries (up 2.87%), NMDC (up 2.26%) and Hindustan Zinc (up 1.9%) advanced.
Steel Authority of India (SAIL) advanced 10.61% to Rs 47.45 after the steel-maker said that it has achieved the highest ever sales in a month during December 2019. With sales of 1.68 million tonnes in December 2019, the company clocked a growth of 47% over corresponding period last year (CPLY), the company said in a press release. Incidentally, SAIL posted a jump of 36% y-o-y in sales during November and the company is consistently maintaining the growth momentum in sales, it said.
Jindal Steel & Power (JSPL) surged 4.48% to Rs 173.75. The company reported 22% rise in steel & related products production to 1.61 million tonnes in Q3 FY20, compared to 1.32 million tonnes in the corresponding period last year.
MOIL jumped 6.51% to Rs 155.50 after the company revised the prices of different grades of manganese ore and other products, effective from 1 January 2020.
Stocks in Spotlight:
TVS Motor Company declined 1.88% to Rs 459.95. The company registered 14.76% declined in total sales to 2.31 lakh units in December 2019 as against sales of 2.71 units in the month of December 2018.
Bajaj Auto slipped 0.93% to Rs 3117.80 after the company reported 16.66% decline in total auto sales to 3.36 lakh units in December 2019 from 4.03 lakh units in November 2019. The total auto sales, however, fell marginally by 3% from 3.46 lakh units in December 2018.
Ashok Leyland rose 3.52% to Rs 83.90 after the company reported 9.76% jump in total vehicle sales to 11,168 units in December 2019 from 10,175 units in November 2019. Total sales dropped 28% last month from 15,490 units in December 2018. Domestic vehicle sales slumped 29% to 10,378 units in December 2019 from 14,718 units in December 2018.
Eicher Motors slipped 2.11% to Rs 21606.25. The company's total commercial vehicles (CV) sales declined 19.1% to 5,042 units in December 2019 from 6,236 units in December 2018. Total two-wheeler sales fell 13% to 50,416 units in December 2019 as against 58,278 units in December 2018.
Tata Motors rose 4.88% to Rs 193.40 after reporting 14.05% jump in total auto sales to 46,903 units in December 2019 compared with 41,124 units in November 2019. Total auto sales, however, fell 13.84% last month from 54,439 units in December 2018. Total domestic sales declined 12% to 44,254 units in December 2019 as compared to 50,440 units in December 2018. Passenger vehicles segment saw sales decline 10% to 12,785 units while the commercial vehicles sales witnessed 15% fall to 34,082 units in December 2019 over December 2018.
Coal India fell 0.47% lower at Rs 210.90. The company's total coal production in December 2019 was 58.02 million tonnes as compared to 54.14 million tonnes in December 2018, recording a rise of 7.2%. The coal offtake recorded a 1.9% rise to 53.63 million tonnes in December 2019 as against 52.61 million in December 2018.
Foreign Markets:
European markets continued to trade higher while Asian markets ended mostly higher buoyed by Beijing easing monetary policy to support slowing growth.
China's central bank on Wednesday said that it would cut the amount of cash that banks must hold as reserves, releasing around 800 billion yuan in funds effective 6 January 2020.
A private survey released on Thursday showed China's manufacturing activity expanded in the month of December. The Markit/Caixin Purchasing Managers' Index (PMI) for manufacturing came in at 51.5, compared to 51.8 in November.
In US, markets were closed on account of the New Year holiday on Wednesday.
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