Domestic shares bounced back on Tuesday, supported by positive global markets. The Nifty, however, failed to close above its 20 days simple moving average (DMA) placed at 12140.44.
Investors kept an eye on the geopolitical developments following Washington's targeted killing of Iran's top military commander Qasem Soleimani in Iraq. After falling for the past two sessions amid a flight to safety, the markets around the globe took a sigh of relief and resume uptrend as Monday passed with no new escalation in tensions.
The barometer BSE S&P Sensex rose 192.84 points or 0.47% to 40,869.47, as per the provisional closing data. The Nifty 50 index advanced 59.90 points or 0.50% to 12,052.95, as per the provisional closing data.
In the broader market, the S&P BSE Mid-Cap index was up 0.65% while the S&P BSE Small-Cap index was up 0.99%.
The market breadth was strong. On the BSE, 1553 shares rose and 927 shares fell. A total of 184 shares were unchanged. In Nifty 50 index, 33 stocks advanced while 17 stocks declined.
The government will release the first advance estimates of the GDP for FY20 today at 5.30 pm. India's GDP slowed to 4.5% in Q2 September 2019. The figure stood at 5% in Q1 June 2019. The first advance estimates will take into account the figures available for the first nine months of the current fiscal.
Buzzing Index:
The Nifty Metal index rose 0.82% to 2,788.45. The index fell 3.63% in the previous two sessions.
Hindalco Industries (up 3.68%), Jindal Steel & Power (up 2.36%), JSW Steel (up 1.56%), National Aluminium Company (up 0.8%), NMDC (up 0.67%), Steel Authority of India (up 0.64%), Tata Steel (up 0.44%) and Vedanta (up 0.42%) advanced.
Hindustan Copper (down 0.81%) and Hindustan Zinc (down 0.12%) declined.
Stocks in Spotlight:
HDFC Bank rose 1.47% to Rs 1259.40. The bank's advances grew by 20% to Rs 9.34 lakh crore as of 31 December 2019 as compared to Rs 7.81 lakh crore as of December 31, 2018. Lender's advances stood at Rs 8.97 lakh crore as of September 30, 2019.
Deposits for HDFC Bank stood at Rs 10.67 lakh crore as of 31 December 2019 growing by 25% compared to Rs 8.52 lakh crore as of 31 December 2018. In September 2019, deposits stood at Rs 10.21 lakh crore. Current and saving account (CASA) ratio stood at around 39.5% as of 31 December 2019, as compared to 40.7% as of 31 December 2018 and 39.3% as of 30 September 2019.
Mahindra & Mahindra (M&M) advanced 0.35% to Rs 526.05 after reporting 22.54% rise in production at 33,888 units in December 2019 as against 27,653 units during the same month last year.
G.M.Breweries fell 4.26% to Rs 391.10. On standalone basis, the company reported a 16.34% decline in net profit to Rs 13.98 crore in Q3 December 2019 over Q3 December 2018. Total revenue from operations declined 3.89% to Rs 119.74 crore in Q3 December 2019 as against Rs 124.58 crore in Q3 December 2018.
ITI surged 13.37% to Rs 103.90 after the company announced a stellar Q3 December 2019 earnings after market hours yesterday. The telecommunications equipment manufacturer reported 1139% jump in its consolidated net profit to Rs 168.25 crore on a 47% jump in net sales to Rs 827.95 crore in Q3 December 2019 over Q3 December 2018.
The bump in the net profit was aided by 107.9% rise in the company's other income to Rs 150.87 crore received from the government for meeting the company's PF liabilities towards its employees and also account of 'write-back' of liablities which in the opinion of the company is no longer required..
Mishra Dhatu Nigam rose 1.70% to Rs 155.40 after the company dispatched its first consignment of ultra high strength steel for ignitor box and cobalt alloy for throat sitting rings for indigenous manned mission of Indian Space Research Organisation (ISRO) 'Gaganyaan'.
PI Industries fell 0.69% to Rs 1409.50. The chemical manufacturer said a factory accident that happened in one section of a Multi-Product Plants (MPP) at Jambusar fine chemicals manufacturing site in Gujarat. This accident unfortunately resulted in two fatalities and nine others are injured. The accident did not result in any fire or hazardous emissions but was limited to one MPP and has not affected operations of the other MPPs at the site.
Foreign Markets:
Shares in Europe and Asia edged higher on Tuesday amid an easing of concerns over geopolitical tensions in the Middle East.
US stocks staged a U-turn on Monday to close at session highs, as investors brushed aside concerns about escalating tensions in the Middle East.
In economic data, the IHS Markit purchasing managers index for the US services sector came in at 52.8 in December, versus 51.6 in November, indicating continued expansion.
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