The benchmark indices extended gains for second straight session on Thursday, reacting to development on the US-China trade front. Media reports suggested that China and the U.S. have agreed to roll back tariffs on each other's goods in phases as they work toward a deal between the two sides.
The barometer index, the BSE Sensex rose 183.96 points or 0.45% to close at a 40,653.74, its record closing high level. The Sensex scaled fresh all time high of 40,688.27 at the fag end of the trading session.
The Nifty 50 index rose 50.05 points or 0.42% to 12,016.10. The index hit an intraday high of 12,021.40. The Nifty closed above the crucial 12,000-mark for the first time since 4 June 2019. The NSE benchmark index is 86.95 points away from its all time high of 12,103.05 hit on 3 June 2019.
The broader market outperformed the benchmark index. The S&P BSE Mid-Cap index rose 0.69% while the S&P BSE Small-Cap index rose 0.54%.
The market breadth was positive. On the BSE, 1339 shares rose and 1187 shares fell. A total of 185 shares were unchanged.
Currency & crude:
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 70.98, compared with its close of 70.9775 during the previous trading session.
In the commodities market, Brent crude for January 2019 settlement was up 75 cents at $62.52 a barrel. The contract fell $1.21 or 1.92% to settle at $61.77 a barrel during the previous trading session.
Foreign markets:
Trading in US index futures indicated that the Dow Jones Industrial Average could rise 158 points at the opening bell today, 7 November 2019.
Shares in Europe and Asia edged higher after China said the world's two largest economies had agreed to cancel additional tariffs imposed in their months-long trade war.
China's Commerce Ministry said Thursday that Washington and Beijing had over the past two weeks agreed to a phased removal of duties on billions of dollars' worth of each other's goods.
"If China, U.S. reach a phase-one deal, both sides should roll back existing additional tariffs in the same proportion simultaneously based on the content of the agreement, which is an important condition for reaching the agreement," China's Ministry of Commerce spokesperson Gao Feng said Thursday.
China's key demand since the beginning of negotiations has been the removal of tariffs imposed by US President Donald Trump, which by now apply to the majority of its exports to the U.S.
Buzzing index back home:
Real estate shares advanced after the Union Cabinet approved special window for funding of stalled affordable and middle-income housing projects.
The Nifty Realty index rose 0.88% at 276.45. Peninsula Land (up 12.08%), D B Realty (up 4.98%), Indiabulls Real Estate (up 4.94%), HDIL (up 4.60%), Unitech (up 3.70%), Phoenix Mills (up 3.11%), Sobha (up 2.34%), Prestige Estates (up 1.48%), Oberoi Realty (up 0.83%), DLF (up 0.44%) and Godrej Properties (up 0.22%) advanced.
The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the establishment of a 'special window' fund to provide priority debt financing for the completion of stalled housing projects that are in the affordable and middle-income housing sector. For the purposes of the fund, the government shall act as the sponsor and the total commitment to be infused by the government would be upto Rs 10,000 crore. The fund will be set up as a Category-11 AIF (alternate investment fund) debt fund registered with Sebi and would be professionally run.
For the first AIF under the special window, it is proposed that SBICAP Ventures shall be engaged to be the investment manager. This fund would in turn provide relief to developers that require funding to complete a set of unfinished projects and consequently ensure delivery of homes to the home-buyers. Since the real estate industry is intrinsically linked with several other industries, growth in this sector will have a positive effect in releasing stress in other major sectors of the Indian economy as well.
Stocks in spotlight:
Gains in index pivotals Reliance Industries (RIL), HDFC and ITC pushed key benchmarks higher. Index heavyweight RIL rose 1.86% to Rs 1458.80. HDFC rose 1.38% to Rs 2250.90. ITC rose 1.78% to Rs 265.90.
Indiabulls Housing Finance jumped 8.85% after the board approved fund raising plans. The company said its board approved issuance of secured and/or unsecured redeemable non-convertible debentures (NCDs), in one or more tranches, by way of a public issue and/or private placement of up to Rs 10,000 crore. The NCDs are proposed to be listed on the National Stock Exchange of India, BSE or any other stock exchange, as may be decided by the board of directors of the company from time to time.
The board also approved issuance of non-convertible debentures along with warrants through qualified institutions placement of up to Rs equivalent to $1 billion.
Indiabulls Housing Finance reported its Q2 earnings after market hours yesterday. On consolidated basis, company's net profit declined 32.15% to Rs 702.18 crore on a 19.62% drop in total revenue from operations to Rs 3419.54 crore in Q2 September 2019 over Q2 September 2018. The board has also declared an interim dividend of Rs 7 per equity share.
JB Chemicals & Pharmaceuticals jumped 6.19% after the company said its board will consider buyback of equity shares on 12 November 2019.
Prakash Industries rose 8.10% after the company announced on Wednesday that it emerged as highest bidder for Bhaskarpara coal mine in Chhattisgarh.
Hindustan Unilever (HUL) fell 1.93%. HUL said that the National Company Law Tribunal, Mumbai Bench, has sanctioned the scheme of amalgamation among GlaxoSmithKline Consumer Healthcare and HUL and their respective shareholders and creditors.
MSTC was locked in an upper circuit of 20% at Rs 147.8. The company has entered into a memorandum of understanding (MOU) with Burn Standard Co for e-Auction services for sale of movable assets and immovable assets. The agreement shall remain valid up to 31 March 2021 until it is terminated by either party by giving three months notice.
Further, Larsen and Toubro appointed MSTC as the selling agent for the sale of scrap arising (ferrous and non-ferrous) from buildings and factories of L&T in India through MSTC's e-Auction website. The contract will remain valid till its termination by giving advance notice of 1 month.
Q2 results:
Drug major Sun Pharmaceutical Industries rose 3.02% after consolidated net profit stood at 1,064.09 crore in Q2 September 2019 over a net loss of Rs 269.60 crore in Q2 September 2018. The consolidated net sales jumped 16.10% to Rs 7,949.19 crore in Q2 September 2019 over Q2 September 2018. The result was announced during market hours today, 7 November 2019.
Adjusted for the exceptional item of Rs 1,214 crores for Q2 last year, net profit growth was 12.6% in Q2 September 2019. EBITDA was at Rs 1,616 crore, up by 12% over Q2 last year.
HPCL fell 1.12%. The firm announced its Q2 earnings during market hours today. Net profit fell 3.63% to Rs 1,052.31 crore on 9.40% decline in total income to Rs 66,850.89 crore in Q2 September 2019 over Q2 September 2018. Average gross refining margin during the six months ended 30 September 2019 was $1.87 per BBL as against $5.93 per BBL during the corresponding period of previous year.
Bombay Stock Exchange (BSE) rose 0.57%. The exchange announced weak Q2 numbers after market hours yesterday. The company's net profit declined 22% to Rs 36 crore in Q2 September 2019 over Rs 46 crore in Q2 September 2018. Revenue from operations were down 5% to Rs 109 crore on YoY basis.
Voltas fell 0.87%. On a consolidated basis, the company's year-on-year profit after tax was flat at Rs 107 crore in Q2 September 2019. Total income inched up 1.91% at Rs 1495 crore in Q2 September 2019 over Q2 September 2018. PBT rose 7.14% to Rs 150 crore in Q2 September 2019 over Q2 September 2018. The company reported a 8.53% decline in employees expense to Rs 157.60 crore during the period under review. The result was announced after market hours yesterday, 7 November 2019.
Tata Steel fell 0.30%. The firm announced its Q2 earnings after market hours yesterday. On consolidated basis, the steel major reported a 6% rise in net profit to Rs 3,302.31 crore on the back of one time deferred tax gain of Rs 4365.33 crore in Q2 September 2019. Adjusted profit after extra-ordinary item fell 10.88% to Rs 3,123.65 crore in Q2 September 2019 over Q2 September 2018. Net sales fell 15.77% to Rs 33,953.75 crore during the period under review. Adjusted EBITDA dropped 46% to Rs 3817 crore on YoY basis. The company had a favorable tax impact of Rs 4,233 crore of which Rs 2,425 crore was on adoption of the new corporate tax rate by Tata Steel Standalone and some subsidiaries in India and Rs 1,808 crore was on account of recognition/reversal of deferred tax assets and liabilities in offshore subsidiaries.
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