Key benchmarks snapped three-day losing run on Friday, amid positive global cues. Fund infusion by the government in some state-run banks also boosted sentiment. Buying was widespread with banks and realty stocks making the biggest up moves. Firmness in index pivotal Reliance Industries also supported the rally.
The Nifty registered a gap up opening and reclaimed 12,200 mark by the mid-morning trade. The index advanced further as the session progressed. Strong buying in last hour of the trade pushed the Nifty near 12,250 mark.
The barometer index, the BSE Sensex, rose 429.16 points or 1.04% to 41,592.92, as per the provisional closing data. The Nifty 50 index gained 119.25 points or 0.98% to 12,245.80, as per the provisional closing data.
In the broader market, the S&P BSE Mid cap was up 0.88% and the BSE Small cap gained 0.83%.
The market breadth was positive. On BSE, 1512 shares advanced while 1032 shares declined. A total of 167 shares were unchanged. In Nifty 50 index, 42 stocks advanced and 8 stocks declined.
Buzzing Index:
PSU banks advanced after the Reserve Bank of India (RBI) on Thursday said it will buy Rs 10,000 crore worth of the current benchmark 10-year bond on 30 December 2019 while selling four bonds maturing in 2020 for an equivalent amount. Simultaneously buying long-end bonds and selling short-end bonds should lead to a flattening of the yield curve.
The yield on 10-year benchmark federal paper fell to 6.505%, compared with 6.576% in the previous trading session.
Earlier this week, RBI had conducted a similar open market operation (OMO) and purchased securities worth Rs 10,000 crore and sold securities worth Rs 6,825 crore.
The falling yields and rising bond prices are credit positive for state-run banks as mark-to-market (MTM) profit from the government bonds' increases in their investment portfolios.
The Nifty PSU Bank index surged 2.97% at 2,569.65. Punjab & Sind Bank (up 11.19%), Corporation Bank (up 6.86%), Bank of Baroda (up 5.45%), Punjab National Bank (up 4.14%), Syndicate Bank (up 3.33%), Bank of Maharashtra (up 3.29%), Oriental Bank of Commerce (up 3.2%), Union Bank of India (up 2.11%), Canara Bank (up 1.57%) and Bank of India (up 1.34%) were top gainers in PSU segment.
Indian Overseas Bank surged 6.48% while UCO Bank advanced 1.79%. The Government of India announced infusion of fresh capital to the tune of Rs 4360 crore in Indian Overseas Bank and Rs 2142 crore in UCO Bank.
Allahabad Bank surged 8.17% after the state-owned bank said it will get a fresh capital infusion of Rs 2,153 crore from the government in the current financial year.
Stocks in Spotlight:
ONGC was trading 0.39% higher at Rs 128.55. The state-run firm has reportedly received environment clearance (EC) for carrying out onshore exploration, development and production of oil and gas in 100 locations in non-forest area of Assam, that would entail an investment of Rs 3,500 crore.
CARE Ratings was up 2.69% while ICRA gained 0.3%. Sebi imposed a fine of Rs 25 lakh each on credit ratings agencies pertaining to ratings of various debentures of IL&FS. After examining the role of credit rating agencies Sebi noted that credit rating agency failed in assigning rating to various NCDs of IL&FS. Sebi also noted that the default in IL&FS has occurred due to lethargic indifference, needless procrastination and laxity on the part of credit rating agencies. Sebi further said that credit rating agencies should have anticipated the mounting credit risks, the stressed balance sheet position of the issuer and placed the ratings accordingly to alert the market in advance regarding the deteriorating financial profile of the issuer.
Gujarat Gas rose 0.87%. Gujarat Gas (GGL) said CRISIL has upgraded long term rating on company's bank loan facilities of Rs 2,350 crore to AA+/Stable from AA/Positive. The upgrade reflects CRISIL's expectations of an improvement in GGL's credit profile over the medium term. Sustainable improvement in cash accruals is expected to improve GGL's financial risk profile notwithstanding the sizeable capital expenditure programme.
Hindustan Aeronautics fell 0.35%. Hindustan Aeronautics said CARE Rating has downgraded its rating on the bank facilities of the company worth Rs 7300 crore to AA+ from AAA.
H.G. Infra Engineering jumped 6.26%. H.G. Infra Engineering said it has been declared L-1 bidder by the National Highways Authority of India for the construction of proposed Rewari Bypass (NH-1) as Feeder Route in Rewari district in the state of Haryana (Design length - 14.40 km) on Hybrid Annuity Mode amounting to Rs 522.02 crore.
Shares of Page Industries were trading 6.17% higher. The company announced that ICRA has reaffirmed long term ratings of the company to ICRA AA with a stable outlook. The credit rating agency also reaffirmed short term rating at ICRA A1+ with a stable outlook.
Foreign Markets:
Shares in Europe and Asia advanced as investor optimism was boosted by hopes that US-China trade deal would soon be signed.
In US, stocks powered higher again on Thursday, helped by reports of record year-end retail sales. Traders returned from their Christmas and Boxing Day break to digest reports from Beijing that it was in close contact with Washington about an initial trade agreement, shortly after US President Donald Trump reportedly talked about signing ceremony for the recently struck Phase 1 trade deal.
On economic front, the number of people filing for US unemployment benefits slid for a second straight week.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
