The Sensex and the Nifty ended with strong gains after hitting all-time highs on Tuesday. IT and metal shares were in demand while the Nifty Bank index hit a record high. Sentiment was buoyed on the back of cooling trade tensions between US and China. Inflows from foreign institutional investors (FIIs) also supported gains.
The barometer index, the BSE Sensex, rose 413.45 points or 1.01% to 41,352.17, as per the provisional closing data. The Nifty 50 index gained 120.45 points or 1% to 12,174.40, as per the provisional closing data.
In the broader market, the S&P BSE Mid-Cap index rose 0.38% and the S&P BSE Small-Cap index gained 0.66%. Both these indices underperformed the Sensex.
The market breadth was positive. On BSE, 1444 shares advanced while 1066 shares declined. A total of 195 shares were unchanged. In Nifty 50 index, 39 stocks advanced and 11 stocks declined.
Meanwhile, India's weightage in the MSCI Emerging Market Index is likely to increase by at least 70 basis points in May 2020, which is expected to draw investment of $2.5 billion by passive funds. India's weight in the MSCI Emerging Market index will rise to 9.6% from the current 8.9%, the global index provider and investment advisor said in a report.
The Finance Minister on 13 December 2019 confirmed that the Budget announcement (of 5 July 2019) increasing the statutory FPI (foreign portfolio investment) limit in a company from 24% to the sectoral foreign investment limit, would be implemented effective 1 April 2020. This would lead to MSCI India's weightage in the MSCI EM to rise, Morgan Stanley said in a note.
Buzzing Index:
Metal stocks were in demand amid an upbeat tone tied to a preliminary US-China trade deal struck last week. The Nifty Metal index rose 2.88% at 2,665.75.
Jindal Steel & Power (up 6.22%), Tata Steel (up 4.2%), Vedanta (up 3.63%), Steel Authority of India (up 3.55%), Hindalco Industries (up 3.29%), Hindustan Copper (up 2%), JSW Steel (up 1.96%), NMDC (up 1.65%), Hindustan Zinc (up 0.95%) and National Aluminium Company (up 0.35%) were top gainers in metal segment.
Stocks in Spotlight:
RIL was down 0.39% after the company bought a 90.5% stake in e-learning products and services provider Funtoot for Rs 71.64 crore.
Further, RIL and British energy major BP Plc on Monday signed a partnership agreement to set up 5,500 petrol pumps under the brand Jio-BP. The venture is expected to be formed during the first half of 2020, subject to regulatory and other customary approvals.
Cipla rose 1.09%. The drug major said it has acquired the brand name and trademark rights for Vysov & Vysov M (Vildagliptin + Metformin) of the anti-diabetic drug, Vildagliptin for the Indian market. The company has been co-marketing Vildagliptin in agreement with Novartis under brand names Vysov & Vysov M and has witnessed a strong uptake for the product in India for the last couple of years.
Shriram Transport Finance fell 1.09% after Standard & Poor Global Ratings revised its outlook on the company to negative from stable on weaker economic conditions.
Car major Maruti Suzuki India was up 0.91% at Rs 7,200. A foreign brokerage upgraded the stock to 'buy' from 'neutral' rating, raising the target price to Rs 8,650 per share from Rs 7,450 per share.
NIIT Technology jumped 8.69% to Rs 1601 after the company said its board will consider share buyback on 23 December 2019.
Federal-Mogul Goetze (India) was locked in an upper circuit of 20% at Rs 664.3 after the Supreme Court dismissed market regulator Sebi's appeal of upholding the open offer price at 608.46. "The order disposes off the appeal, upholding the valuation of the shares of Federal-Mogul Goetze (India) (FMGIL) at Rs 608.46, as directed by the Securities Exchange Board of India (Sebi) vide its communication dated 4 July 2019, to the merchant banker. The order grants the partial relief to the acquirer that it will be required to deposit in the escrow account only such amount as is required under regulation," Federal-Mogul Goetze (India) said in a regulatory filing after market hours yesterday, 16 December 2019.
Whirlpool of India dropped 4.17% to Rs 2,159.95 after Sunil D'Souza resigned as the managing director of the company. Sunil D'Souza's resignation will be effective from 3 April 2020. The announcement was made after market hours yesterday, 16 December 2019.
Magma Fincorp was locked in a lower circuit of 5% at Rs 53.25 after credit rating firm ICRA revised rating outlook on the company's term loans and non-convertible debenture programme (NCDs) to 'negative' from 'stable'.
Foreign Markets:
European stocks traded lower Tuesday on profit booking following a worldwide rally on the back of a 'phase one U.S.-China trade deal.
Asian markets closed higher as sentiment continues to be buoyed by a recent phase one trade deal reached between Beijing and Washington.
In US, stocks ended Monday's session at new records amid an upbeat tone tied to a preliminary US-China trade deal struck last week, even while questions remain over the details of the long-awaited phase-one accord.
In US economic data, the Markit purchasing managers survey for the manufacturing sector was down a touch to 52.5 in December, from 52.6, but the services sector gauge came in at 52.2, from 51.6. Any number above 50 represents a pickup in economic activity.
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