Sensex, Nifty Post Fourth Yearly Gains In Five Years

Closing Bell

Indian shares end the last trading session of a topsy-turvy year on a strong note, with benchmarks’ posting best weekly gains in nearly four-months.

The S&P BSE Sensex climbed 1 percent for the day and 1.9 percent for the year to 26,626. While the NSE Nifty advanced 1 percent for the day and 3 percent for the year to 8,185.

The market breadth was firmly controlled by the bulls with 1,110 stocks advancing, 470 declining and 310 remaining unchanged on the NSE.

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MBL Infrastructure Hits Lower Circuit...Again!

• Shares of the construction firm hit its lower circuit of 5 percent in trade.
• This is the stock’s thirteenth lower circuit as many days.
• On December 14, the company alleged that the Madhya Pradesh Road Development Corporation illegally terminated two build-operate-transfer projects with the company.
• The two projects included a highway two-laning order in the Senoi-Katangi-Maharashtra border and a widening and upgradation order of a major district road in Madhya Pradesh.
• The projects were to be carried out by the company's subsidiaries, according to MBL Infrastructures' statement to the exchanges.
• The company has two other operational projects with the MPRDC which are ongoing.
• The stock has lost nearly 40 percent in market value since the news was announced.

PSU Banks Rally

The Nifty PSU Bank index was trading higher by 1.5 percent despite the Reserve Bank of India’s warning that the bad loans of state run banks may surge up to 10.1 percent by March 2018.

Oriental Bank of Commerce (up 3.85 percent) led the gains along with Allahabad Bank and Union Bank of India.

Havells Gains Post Block Deal

Shares of Havells India gained as much as 2.33 percent to Rs 336 after 2.2 million shares of the company changed hands in a single block deal.

Sugar Stocks Surge

Sugar companies gained the most in four months after the reports suggested that government was considering debt recast plans for the companies. Stocks like Dalmia Bharat Sugar, Bajaj Hindusthan, Dwarikesh Sugar and Dhampur Sugar saw gains between 6-10 percent.

• Bajaj Hindusthan (up 6.79 percent to Rs 14.15)
• Dalmia Bharat Sugar (up 8.29 percent to Rs 139.90)
• Dwarikesh Sugar (10.27 percent to Rs 329.50)
• Shree Renuka Sugar (up 6.87 percent to Rs 14)

Rupee Strengthens

Moving in-line with a weaker dollar the rupee added 16 paise to trade at 67.94 against the greenback, during its last session for this year as exporters and banks intensified selling of the U.S. currency amid a higher opening in the stock market.

Yesterday, the local unit had recovered by 14 paise to close at 68.10 on fresh selling of the greeenback in view of its weakness overseas amid a revival in domestic equities.

Opening Bell

Indian shares climbed, with the benchmarks advancing to their highest level in two-weeks.

The S&P BSE Sensex gained 0.5 percent to 26,500 while the NSE Nifty rose 0.5 percent as well to 8,144. The market breadth too was encouraging with 1,026 stocks advancing, 357 declining and 445 remaining unchanged on the NSE.

Movers & Shakers: Petronet LNG, Phoenix Mills, IFCI And More

Money Market Heads-Up

Indian rupee strengthened yesterday, widening its first monthly gain in three months. But, going into the first quarter of 2017 the currency may weaken against the dollar as investors watch for the U.S. Fed's action on interest rate.

The consensus view that demonetization will have a big negative impact on India's short-term growth is wrong, that's according to Bloomberg Intelligence. The nation's GDP may grow at 7.5 percent this fiscal, a tad below the 7.7 percent estimate before the demonetization.

Among global currencies, technical charts signal the recent momentum in the pound, krone and rand may continue.

Bond Market Update:

Indian sovereign bonds look poised to extend 2016’s Asia-beating rally in the new year with interest-rate cuts expected in a banking system already flush with cash. The benchmark 10-year yield will probably fall to 6.23 percent by March-end, from 6.52% on Thursday.

5 Things To Watch

Stocks To Watch

• Jagran Prakashan: To consider buy back of shares January 5
• Petronet LNG: Signs deal to build LNG Terminal in Bangladesh
• Cholamandalam Investment: Cut to accumulate at Emkay Share

For a complete list of stocks to watch, click HERE

Offerings

• PSP Projects files DRHP for IPO to sell up to 10.1 million shares

Talking Points

• India’s financial system stable, but banks facing stress: RBI
• Dominant state banks face significant stress: RBI

• FIPB approves 6 FDI proposals worth Rs 1,200 crore: Official
• FIPB defers proposals of Flag Telecom, Gland Pharma
• Modi says terror cash neutralized by note ban (India Today)
• Jaitley says currency availability to improve further

Read: Modi set to face fallout from his 50-day cash promise to India

• India note ban ordinance doesn’t have jail term provision
• Tata Sons asks Cyrus Mistry to return confidential documents
• Global funds sell Rs 662 crore of local stocks; domestic funds buy Rs 958 crore yesterday: Provisional data
• India’s sugar shortage deepens as cane crops set to disappoint
• Apple said planning April India production start (Times of India)

Data To Watch

• 4:30pm: Fiscal deficit in rupees for April-Nov. period

Good Morning!

The Nifty futures on the Singapore Stock Exchange, an early indicator of Nifty’s performance in India, advanced 0.17 percent to 8,130.

Asian stocks fell this morning, with Japan heading toward its first annual loss since 2011. The euro spiked higher as the dollar weakened for a second day and oil rebounded in thin end-of-year trading.

Crude futures rebounded 0.4 percent to $53.97 a barrel, clawing back some of Thursday’s 0.5 percent decline. Prices are up about 46 percent this year. Supply cuts from OPEC and other producing nations next month are intended to stabilize the market and reduce swelling in global inventories.

The S&P 500 Index ended little changed on Thursday, following the announcement of new American sanctions against Russia over election hacks. Trading has been thin across the globe during the last week of the year, with volumes in crude oil, equities and currencies all below average.

Investors may be reallocating money as they assess asset moves in the wake of the U.S. election that took the dollar to multi-year highs, sent Treasuries tumbling and spurred a rally in American equities.