Market ends with modest gains

Key domestic indices ended the volatile trading session with modest gains on Friday. The market sentiment was upbeat amid positive global cues. The Nifty pared gains after hitting a record high of 12,311.20 in early afternoon trade.

The barometer BSE S&P Sensex rose 150.09 points or 0.36% to 41,602.44, as per the provisional closing data. The Nifty 50 index gained 40.9 points or 0.33% to 12,256.80, as per the provisional closing data.

In the broader market, the S&P BSE Mid-Cap index rose 0.84% while the S&P BSE Small-Cap index gained 0.94%. Both these indices outperformed the Sensex.

The market breadth was strong. On the BSE, 1414 shares rose and 1139 shares fell. A total of 176 shares were unchanged. In Nifty 50 index, 31 stocks advanced while 9 stocks declined.

Buzzing Segment:

Shares of Tata Group companies advanced after the Supreme Court (SC) on Friday stayed NCLAT order reinstating Cyrus Mistry as executive chairman of Tata Sons. SC on Friday, 10 January 2020, stayed the National Company Law Appellate Tribunal (NCLAT) decision to restore Cyrus Mistry as executive chairman of the Tata Group. SC noted that it looked at the judicial attitude with which the NCLAT made the 18 December order and found that it is sorely lacking.

SC asked Mistry and Shapoorji Pallonji group including Sterling Investment and Cyrus Investment to file a reply to the Tata group's appeal in four weeks.

NCLAT on 18 December 2019 ruled in favour of Cyrus Mistry on petition challenging his removal as Chairman of Tata Sons. The tribunal restored Mistry as the Executive Chairman of Tata Group, holding the appointment of N Chandrasekaran as executive chairman illegal.

Tata Global Beverages (up 3.82%), Rallis India (up 3.19%), Tata Power (up 2.55%), Tata Chemicals (up 2.04%), Tata Coffee (up 1.81%), Tata Motors (up 1.61%), Tata Steel Long Products (up 1.49%), Voltas (up 0.58%), Tinplate Company of India (up 0.53%), Tata Metaliks (up 0.49%) and Tata Steel (up 0.34%) advanced.

Q3 Earnings:

GTPL Hathway was up 2.28% after the company announced robust Q3 earnings. On consolidated basis, the company reported a 78.2% jump in net profit to Rs 33.06 crore on a 114.3% jump in net sales to Rs 673.97 crore in Q3 December 2019 over Q3 December 2018.

Emami Paper was locked in an upper circuit of 10% at Rs 89.5 after the company announced a stellar Q3 December 2019 result. On standalone basis, net profit jumped 222.9% to Rs 18.50 crore on a 7.4% rise in net sales to Rs 400.08 crore in Q3 December 2019 over Q3 December 2019.

IT bellwether Infosys was up 1.3% ahead of its Q3 December 2019 results later today. The firm announced that its audit committee found no evidence of financial impropriety or executive misconduct.

Stocks in Spotlight:

Housing Development Finance Corporation (HDFC) was up 0.1%. HDFC said it completed the acquisition of 50.80% shares of Apollo Hospitals Group in Apollo Munich Health Insurance Company for Rs 1,485 crore. It also acquired 0.36% stake in Apollo Hospitals held by employees for Rs 10.67 crore. Apollo Munich has been renamed to HDFC ERGO Health Insurance, which will operate as a subsidiary of HDFC.

Delta Corp rose 2.71% after the company said its subsidiary received a license for operating a casino at the Marriot Hotel in Nepal. The operations of the casino are expected to commence soon, the company said in a statement after market hours yesterday, 9 January 2019.

Yes Bank fell 5.07% after the media reported that Uttam Prakash Agarwal resigned as an independant director of the bank. Uttam Prakash Agarwal was appointed as an independent director on the board of Yes Bank with effect from 14 November 2018 for a period of 5 years. The media reported that the early resignation was due to corporate governance concerns at the bank.

Sterlite Technologies (STL) rose 2.49%. Sterlite Global Venture (Mauritius) a wholly owned subsidiary of STL, has entered into definitive agreements to acquire 12.8% stake (on issued and outstanding basis) in ASOCS, a vRAN technology company based out of Israel.

Tata Steel rose 0.79%. The steel major announced its operational update for Q3 December 2019 before market hours today, 10 January 2020. Tata Steel India's production volume rose 1.83% to 4.46 million tons in Q3 December 2019 as against 4.38 million in Q3 December 2018. Production in Europe surged 6.84% to 2.5 million tons in same period. Sales Volume showed a significant improvement on YoY basis. Tata Steel India's sales jumped 24.42% to 4.84 million tonne in Q3 December 2019. Sales in Europe declined 1.7% to 2.31 million tons on the back of overall slowdown and seasonal weakness.

Foreign Markets:

Shares in Europe were almost flat while Asian shares ended higher on Friday, following the easing of US-Iran tensions, and after US stocks shot to record highs.

In US, stocks swept to record highs once again on Thursday as investors focused on progress on the trade pact with China due to be signed next week and amid an easing of concerns about war in the Middle East.

China's Vice Premier Liu He, the head of the country's negotiating team in trade talks with the United States, will sign a "Phase 1" deal in Washington, DC, next week, the commerce ministry said on Thursday. Liu will visit the US capital from January 13 to 15, said Gao Feng, a spokesman at the commerce ministry.

In economic data, the number of Americans who applied for unemployment benefits fell in early 2020 for the fourth week in a row, putting new jobless claims back near the lowest level in about 50 years. Initial jobless claims declined by 9,000 to 214,000 in the seven days ended 4 Jan 2020.

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