MARKET WRAP: Sensex rises for 4th straight day, gains 232 pts led by banks

Among the sectoral indices, the Nifty FMCG index rose 1.01 per cent led by gains in ITC and Dabur India. The Nifty Bank index too rose 0.77 per cent led by Axis Bank, HDFC Bank and ICICI Bank.

10:29 AM

Infosys climbs 3% after co says board will consider share buyback on Jan 11

Shares of IT major Infosys rose as much as 2.8 per cent at Rs 688.70 a piece on BSE in the early trade Wednesday after the company announced its board will consider a buyback programme and payment of special dividend, among other proposals, at its meeting on January 11.

 

"The board of the company will consider proposals including buyback of shares, payment of special dividend, for implementation of the capital allocation policy at its meeting to be held on January 11, 2019," the company said in a BSE filing on Tuesday. Read more

10:16 AM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,194.93	+214.00	+0.59
S&P BSE SENSEX 50	11,356.19	+61.88	+0.55
S&P BSE SENSEX Next 50	32,716.49	+96.31	+0.30
S&P BSE 100	11,138.06	+56.70	+0.51
S&P BSE Bharat 22 Index	3,491.35	+6.83	+0.20

10:03 AM

'Semi-arranged match' may not fill all gaps for Bandhan Bank

Deepak Parekh, Chairman of HDFC, termed the merger between Bandhan Bank and Gruh Finance as a semi-arranged match. But this one too, as with any marriage, may take time to establish compatibility.

 

Tuesday’s stock market reaction echoes similar sentiments. While Gruh Finance stock took a big beating – down 17 per cent to adjust to the merger swap ratio — Bandhan’s stock fell over 5 per cent. READ MORE

9:55 AM

Sputtering production growth impacting volumes of Coal India: MOFSL

 

We are reducing adj. EBITDA estimates by 5%/6% to INR242/274b for FY19E/20E on combined impact of reduction in volumes and increase in E-auction prices as discussed above. EPS is reduced by 5%/7% for FY19E/20E. Stock is trading at an attractive valuation i.e. adj. EV/EBITDA of 4.6x/4.1x, P/E of 9.2x/8.3x and dividend yield of 8%/9% at 90% payout ratio in FY19E/20E. Adjusted EBITDA is expected to increase at CAGR of 16% over FY18-20E on high operating leverage driven by 5-6% volume growth and cost reduction on high natural attrition. We maintain BUY and value the stock at Rs 338/share based on EV/EBTIDA of 6.5x, in line with valuation of mining stocks.

9:53 AM

Momentum Picks by ICICI Direct Research

9:45 AM

Web Exclusive | IT Q3 preview: Seasonally slow quarter; CY19 outlook to be watched

We expect the IT firms under our coverage to post a combined 1.4 per cent quarter-on-quarter (QoQ) rise in revenue in US dollar terms in Q3FY19 - a seasonally weak quarter, owing to furloughs and lower billing days led by the holiday season. Reported USD revenue is likely to be adversely affected on US dollar strength against cross-currencies including Euro, British pound and Australian dollar (1.3-2 per cent QoQ appreciation on quarterly average rate). Click here to read further

9:35 AM

Infosys gains nearly 2% in early trade as board said it will consider a buyback programme and payment of special dividend, among other proposals, at its meeting on January 11

9:25 AM

NMDC slips 2% in early trade following the finance ministry has approved state-owned iron ore producer's share buyback plan worth Rs 1,000 crore.

9:19 AM

Sectoral trend on NSE

9:18 AM

Opening gainers and losers in BSE Sensex

9:16 AM

Market at open

 

At 9:15 AM, the S&P BSE Sensex was trading at 36,185, up 205 points, while the broader Nifty50 was ruling at 10,860, up 58 points.

9:04 AM

Market at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,309.40	+328.47	+0.91
S&P BSE SENSEX 50	11,387.62	+93.31	+0.83
S&P BSE SENSEX Next 50	32,674.67	+54.49	+0.17
S&P BSE 100	11,162.53	+81.17	+0.73
S&P BSE Bharat 22 Index	3,490.05	+5.53	+0.16

9:02 AM

Rupee opening

 

Rupee opens at 70.05/$ vs its previous close of 70.21 per dollar. 

8:56 AM

Nifty outlook by Prabhudas Lilladher

The market is waiting for Nifty to cross 10830-10850 levels for higher targets as for now Nifty is holding on to the support of 10650-10700. Support for the day is seen at 35730/10740 while resistance is seen at 36240/10850. Bank Nifty would have a range of 27240-27780. Now with the onset of result season market would continue with its volatility, Metal index is currently at a good support level from where a bounce cannot be ruled out, also is the case with sugar stocks which seems to be in the new round of momentum. Click here to read more

8:52 AM

Buy Axis Bank for target of Rs 704, SL of Rs 620: HDFC Securities

Buy Axis Bank at Rs 651

Target: Rs 704

Stop Loss: Rs 620

 

The stock price has given Symmetrical Triangle breakout on the Daily charts. Higher tops and higher bottoms on the daily and weekly charts. Volumes gradually improving along with the price rise. The stock price has been trading above its 20, 50, 100 and 200 DMA. Oscillators and Indicators setup is bullish. The banking sector is likely to outperform.

 

Considering the technical evidence discussed above, we recommend buying the stock between 651 and 635 for the target of 704, keeping stop loss at 620 on closing basis. Click here for more