MARKET WRAP: Sensex up 137 pts, Nifty ends at 10,967 led by PSU banks, FMCG

The Nifty PSU Bank index ended 2.9 per cent higher led by Vijaya Bank and Bank of India after TV reports suggested that Allahabad Bank, Bank of India and Bank of Maharashtra may come out of PCA soon

8:35 AM

INFO NUGGET

Rupee Gains Highest in Five Years after Crude Oil Falls; DHFL Exits Mutual Fund Business

 

Market Preview

 

At 8:00 a.m. IST, the SGX Nifty Futures was trading 0.4% up at 10,994.5. It is at a premium to the Nifty’s previous closing of 10,908.7. On Tuesday, FIIs/FPIs were net buyers. They bought stocks worth INR 145 crore. DIIs sold stocks worth INR 183 crore.

 

 

The Indian market status remains in an Uptrend Under Pressure. The market will be moved to a Confirmed Uptrend if the Nifty retakes the 10,942 level (its high during the recent rally). On the flip side, we will change the status to a Downtrend if two or three more distribution days are added.

 

 

Global stock markets: Nikkei -0.1%, KOSPI +0.7%, Hang Seng +0.1%, Shanghai Composite -0.4%, NASDAQ +0.5%, S&P 500 +0.01%, Dow 30 +0.4%

 

Key Global News

 

1. After crude oil fell to a 14-month low, the rupee registered its biggest single-day gain in five years to end at Rs 70.45 against the dollar.

 

2. Eurozone Consumer Price Index was up 1.9% y/y in November, missing expectations of a 2% increase.

 

3. As per the report by a government researcher, the Chinese economy is expected to grow about 6.0-6.5% with moderately loose economic policy. 

 

Stocks in News

 

DHFL: In a company filing on Tuesday, DHFL announced that it will sell its entire stake in its mutual fund business to its JV partner. The Company also announced the sale of its 50% stake in subsidiary DHFL Pramerica Trustees Pvt. Ltd.

 

YES BANK: Yes Bank announced in a regulatory filing that it has offloaded its 2.13% stake in Fortis Healthcare Ltd. 

(Source: William O'Neil India report)

8:34 AM

Buy Deltacorp for a target of Rs 280, SL of Rs 245: HDFC Securities

 

The stock has surpassed the crucial resistance of 200 DMA. The stock has broken out from the consolidation seen in last 1 month. Volumes have risen along with the price rise. Oscillators and Indicators have been showing strength in the counter.

 

Considering the technical evidence discussed above, we recommend buying the stock at CMP for the target of 280, keeping the stop loss at 245 on closing basis. Click here to read more

8:29 AM

Nifty outlook by Prabhudas Lilladher

 

The market has got into the festive mood with all large-cap and now also the mid-cap stocks have started participating, RSI on the daily chart being at 59 calls for a further strong up move. The support for the day is seen at 36080/10840 while resistance is seen at 36620/10970. Bank Nifty would have a range of 26880-27470. PSU Banks too have started participating with SBI taking the lead. All large-cap like LT, Sun Pharma, RIL, etc. continue to look positive. Read more

8:26 AM

Edelweiss on Ashoka Buildcon

Ashoka Buildcon (ASBL) has announced Morgan Stanley India Infrastructure (MSII) has committed Rs 1.5bn in equity in its city gas distribution (CGD) arm, Unison Enviro Private Limited (UEPL). ASBL and  MSSII will hold 51:49 stake in UEPL with corresponding equity infusion in line with their respective stakes. With UEPL needing Rs 1.6bn in equity for its current projects, the partnership is likely to be sufficient not only to fund its existing projects, but also to grow its portfolio by winning new projects. We view this development as a major positive for ASBL—allowing it to scale up the CGD business while reducing the strain on balance sheet. Maintain ‘BUY’ with an SOTP‐based target price of Rs 201

8:25 AM

Rupee check

 

The Indian rupee gained the most in five years, aided by a sharp correction in crude prices.

 

The Indian rupee ended at 70.45 a dollar, gaining 1.57 per cent intra-day, its biggest one-day gain since September 19, 2013. The rupee had closed at 71.55 a dollar on Monday. The present level though, is at a two-week high.

8:25 AM

Jefferies on banking sector

In order to ease liquidity and align the Statutory Liquidity Ratio (SLR) requirements with Liquidity Coverage Ratio (LCR), we believe the RBI would reduce SLR by 25 bps every calendar quarter commencing Jan 2019, to take it to 18.0% from 19.5% currently. For borrowers (both new & existing) with fund based working capital limit of more than Rs1.5bn, banks have to ensure a minimum 40% level of 'loan-component' from April 2019 (limit would be increased to 60% from July 2019). This should result in better policy transmission and misuse of random rollover of cash-credit facilities.

8:22 AM

Oil check

 

Oil had stolen the show as a supply glut saw Brent shed almost 6 per cent overnight. US crude was last down another 13 cents at $46.11 a barrel, while Brent recouped just 4 cents to $56.30.

 

Brent’s 35 per cent plunge since October is sending a disinflationary pulse through the world at a time when trade and economic activity are already cooling.

 

(Source: Reuters)

8:21 AM

SGX Nifty

 

SGX Nifty was trading at 10,990.50 levels, up 36 points or 0.3 per cent in early trade.

8:18 AM

Asia tenses for Fed call, oil slide boosts bonds

 

Asian share markets played second string to bonds on Wednesday as a spectacular fall in the price of oil spurred speculation the U.S. Federal Reserve might be done with tightening after its policy meeting later in the session.

 

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4 per cent. Japan's Nikkei steadied after an early dip.

8:16 AM

Wall Street check 

 

The benchmark S&P 500 stock index ended little changed in a choppy trading session on Tuesday as the possibility of a partial US government shutdown raised investor jitters ahead of a highly anticipated meeting of the Federal Reserve. The Dow Industrials and the Nasdaq posted slight gains, however, as shares of Boeing Co and the group of internet-focused momentum stocks known as FAANG rose.

 

The Dow Jones Industrial Average rose 82.66 points, or 0.35 per cent, to 23,675.64, the S&P 500 gained 0.22 point, or 0.01 per cent, to 2,546.16 and the Nasdaq Composite added 30.18 points, or 0.45 per cent, to 6,783.91.

8:12 AM

Good morning

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