Sensex, Nifty Climb To Near 2-Month High On Fed Minutes
The Nifty Index gained 0.9 percent to 8,278, which is its highest level since Nov. 15.
Closing Bell
Indian shares gained the most in the week after the minutes of the Fed's December meeting highlighted concerns about the impact of strong currency on the new U.S. administration's stimulatory economic policies.
Traders took solace in the fact that the tone of the central bank officials of the world's largest economy was not as hawkish as anticipated.
The S&P BSE Sensex climbed 0.9 percent to 26,878 while the NSE Nifty jumped 1 percent to 8,273. Both the key benchmarks closed at their highest level since November 10 of last year. The market breadth was firmly in favour of the buyers with 1,152 stocks advancing, 469 declining and 276 remaining unchanged.
Except the Nifty Information Technology Index (down 0.9 percent), all other 11 sectoral gauges advanced on the NSE.
Nifty has strong hurdle at 8300 and it has almost reached to that mark. From here on, banking holds the key for further up move else consolidation will set in again.”Jayant Manglik, president (retail distribution), Religare Securities wrote in a note.
Jagran Prakashan Drops After Buyback Offer
Shares of the media firm fell as much as 3 percent to Rs 175 after it approved a buyback offer of its equity shares. The company will buy back 4.74 percent of its shares at Rs 195 apiece.
The stock, which had gained as much as 2.7 percent in early trade, snapped a six-day winning streak.
Stocks Back In Limelight As 3-Year Run Makes Indian Bonds Pricey
Rupee sovereign notes, emerging Asia’s best performers in the last three years, are seen offering a more subdued return as India’s central bank nears the end of an easing cycle that began in early 2015. Equity valuations relative to bonds are the most attractive since 2013, according to Morgan Stanley, which has India among its top emerging-market picks.
Read the full report HERE
Bank Nifty Looks Vulnerable: K Subramanyam, Altamount Capital
The Nifty 50 index has gained over 1.5 percent this week despite a lack of participation from foreign institutional investors. After a quiet week, turnovers have gradually picked up to register average levels.
On Bloomberg Quint’s ‘Surf’s Up’, which tracks weekly trends in equity derivatives, K Subramanyam of Altamount Capital tells Agam Vakil that the Nifty is at a crucial juncture and breaking above certain levels could lead to a break out upwards. For more on levels to watch and stock ideas, listen in
European Indices Open Weak
Why BJP’s Defeat In The 2017 Uttar Pradesh Polls Should Surprise You
Cash-Ban Hit Cement Sales to Revive in June, Ambuja Says
Ambuja Cements Ltd., a unit of LafargeHolcim Ltd., said it will take until June for demand to rebound after being dented by Prime Minister Narendra Modi’s surprise cash ban.
Industry-wide output in November increased 0.5 percent from year earlier, while production in the April-November period rose 4.3 percent, government data show. Demand will remain under pressure for two quarters, Managing Director and Chief Executive Officer Ajay Kapur told Bloomberg News.
Click HERE for full report
3-Month Stock Performance of Cement Makers
- Ambuja Cement (-16.4%)
- Shree Cement (-20.8%)
- ACC (-18.5%)
- JK Cement (-18.8%)
- Orient Cement (-42.4%)
- JK Lakshmi Cement (-29.6%)
- India Cements (-20%)
Corporate Announcements
- Shares of Cupid Ltd. were trading higher by 1.2 percent at Rs 309.10 after the company’s board approved a plan to raise funds not exceeding Rs 60 crore through issue of securities via QIP, FCCB’s and other options.
- Tata Elxsi Ltd. was also in the news after the company announced a partnership with software provider DISTI for innovative and visually appealing content for futuristic displays in vehicles. Shares were trading higher by 1.5 percent at Rs 1,440.
Google CEO Sundar Pichai At His Alma Mater
BQSpotted
North Eastern Carrying Corp. Up 47% In 6 Days
- Jumped as much as 13 percent today after ending 16.6 percent higher yesterday
- Gained 47 percent in the last six sessions
- Volumes at 18.6 times its previous 20-day average
- Logistics company; Market Cap: Rs 270 crore
BQPoll Of The Day
Nifty Metal Index Outperforms
The Nifty Metal Index gained as much as 2.1 percent, against a 0.9 percent advance in the broader Nifty 50 Index. The sectoral gauge, which was the top performer of last year, has gained five times in the last six trading sessions.
BQSpotted
Vinati Organics Rallies
- Chemical manufacturing company Vinati Organics rose as much as 10 percent today.
- Volumes are 2.3 times its 20-day average traded volumes.
- Various asset management companies like Tata Asset Management, JP Morgan Asset Management, Black Rock Fund Advisors hold this stock in their portfolio.
Rupee Makes More Gains
The rupee firmed up 16 paise to 67.89 against the dollar today after the U.S. currency saw higher selling by exporters and banks amid a higher opening in the domestic stock market.
Forex dealers said weakness in the greenback against other currencies overseas gave the rupee some relief. Further, a higher opening in the domestic equity market gave the uptrend some momentum, they added.
On Wednesday, the domestic unit ended higher by 28 paise at 68.05 following a fresh bout of dollar selling.
Opening Bell
Indian shares climbed as the Fed minutes highlighted concerns about the impact of strong currency on the new U.S. administration’s stimulatory economic policies. Traders took solace in the fact that the tone of the central bank officials of the world’s largest economy was not as hawkish as anticipated.
The S&P BSE Sensex gained 0.6 percent to 26,804 while the NSE Nifty too gained 0.6 percent to 8,241. The market was also encouraging with buyers dominating trade. Around 1,155 stocks advanced, 281 declined and 432 remained unchanged on the NSE.
Movers & Shakers: SBI, Sun Pharma, Swan Energy And More
5 Things To Watch
Stocks To Watch
- Bafna Pharmaceuticals: To consider fresh issue of 8 million share warrants on January 7, to withdraw preference issue
- Dena Bank: To consider raising funds via equity, bonds on January 7
- Just Dial: To seek shareholders’ nod on arrangement with unit January 17
- Petronet LNG: Wins Rs 33 crore of contract from Shree Cement
- Sun Pharmaceutical: Says Seciera meets primary, key secondary endpoints
- Tech Mahindra: Starts Saudi JV with Al Fozan Group
- KKR in talks with Singh Brothers to buy Fortis Healthcare (Mint)
- Bharat Petroleum roadshow for dollar bonds starts today
- Jagran Prakashan to consider buyback of its shares today
- GM Breweries to report third quarter earnings
- Infosys raised to neutral at UBS
- Sun TV raised to buy from neutral at Citi
- Voltas raised to add at CIMB
- Zee Entertainment raised to neutral from sell at Citi
Offerings
- Swaraj Automotives OFS for non-retail investors opens; Founder b4S Solution to sell 9.59 percent, or 230,002 shares, at a minimum price of Rs 160 each on BSE. Retail investors can bid on Friday.
For a complete list of stocks to watch, click HERE
Talking Points
- India will end FY17 with higher than budgeted revenue collection: Jaitley
- Consensus eludes India GST meeting on dual control: Sisodia
- India GST Council to meet again on January 16
- Indians said to deposit 97 percent of notes banned to curb graft
- India-U.S. ties will be brighter than in immediate past: Akbar
- Bet on India’s rupee in the time of ’dollar dominance,’ CS says
- Foreigners can trade in Gujarat Exchange without documents: SEBI
- U.S. reports determinations in AD, CVD probes of some India tires
- Global funds sell Rs 801 crore of local stocks; domestic funds buy Rs 427 crore yesterday: Provisional data
Money Market Heads-Up
The dollar has plunged against its Group-of-10 peers after minutes of the Federal Reserve's December meeting showed officials were worried the economy could start to run faster than they anticipate, forcing them to raise rates at a quicker pace.
This is a good sign for the rupee and the local currency, which rose 0.4% to 68.05 per dollar could rise further.
In the sovereign bond market, the mood remains positive as the data on growth continues to stay bleak. India's dominant service sector is set to contract for a second straight month, adding evidence that demonetization will trigger a slowdown in Asia's third largest economy.
The yield on the benchmark note dropped 8 basis points in the last session to 6.36 percent. Though market participants believe there is some more room for yields to fall, the current levels are surely attractive for buyers.
Good Morning!
The Nifty futures on the Singapore Stock Exchange, an early indicator of Nifty’s performance in India, climbed 0.4 percent to 8,235.
Asian equities swung between gains and losses as the stock rally fizzled as traders in the region digested minutes from the Federal Reserve’s December meeting. Japan’s currency rose 0.5 percent against the dollar, while the U.S. stocks rose a second day overnight.
The dollar fell from a 14-year high as the Fed minutes highlighted concerns about the impact of strong currency on the new U.S. administration’s stimulatory economic policies.
Most members of the Federal Open Markets Committee (FOMC) reiterated their call to maintain a ‘gradual’ pace of rate hikes over the coming years, according to the minutes of the December 13-14 meeting released on Wednesday.
In bond news, the three-month London interbank offered rate breached 1 percent for the first time since 2009. Yesterday’s increase was the largest since the Federal Reserve boosted rates three weeks ago.
In commodities, Crude oil futures were little changed after yesterday’s 1.8 percent advance. U.S. crude inventories were projected to have declined while OPEC and other producers implemented promised production cuts.
Gold rose for the third consecutive session to trade above the $1,170 per ounce mark.