Reliance Industries’ Record Rally Helps Sensex, Nifty Extend Gains To Day 5

Indian stocks climbed for a fifth straight session, with key benchmarks hovering near their one-year highs on the back of a record rally in index heavyweight Reliance Industries.

The S&P BSE Sensex gained 0.3 percent to 28,864 while the NSE Nifty advanced 0.2 percent to 8,926. The 50-share index rose as much as 8,960 intraday – just eight odd points away from its 52-week high.

Reliance Industries rose nearly 11.2 percent and was the biggest gainer on both the Sensex and the Nifty after its telecom unit announced plans to begin charging for services from April.

For more on what is making analysts bullish on Reliance, click HERE

Shares of the country’s third largest private sector lender gained as much as 3.9 percent, extending its two-day advance.

The stock had risen 4.8 percent on Tuesday, after an unnamed government official told Bloomberg News that the Centre has not been approached by anyone with regard to Axis Bank merger.

On Tuesday, CNBC-TV18 reported that HDFC Bank, ICICI Bank and IndusInd Bank approached government informally on buying the lender. “The government has no plan as of now to exit Axis Bank via SUUTI,” the official, asking not be identified citing rules, told reporters in New Delhi.

Bharat Electronics’ offer-for-sale (OFS) for non-retail portion was subscribed 103 percent as on 2:15 p.m. according to NSE data.

The stake sale of 1.11 crore shares to be carried out through the OFS mechanism, will remain open for two days – non-retail and institutional investors can bid on Tuesday, while retail investors will bid on Wednesday.

“The floor price for the offer shall be Rs 1,498 an equity share,” said the company in a filing to the BSE. Retail investors will be given a discount of 5 percent on the cut off price of the shares.

As much as 20 percent of the offer size is also reserved for them.

Indian shares pared some of their intraday gains in the afternoon session, dragged lower by technology firms and drug makers, but a surge in index heavyweight Reliance Industries kept the momentum going.

Shares of the IT services provider gained as much as 4.6 percent after it bagged an order worth $2.5 million from Australia-based Allegis Group.

Ramco will implement its systems across eight countries including India, Singapore, Malaysia, China, Hong Kong, Japan, Australia and New Zealand covering 7000+ employees and contractors of Allegis.

Allegis Group is the global leader in talent solutions, and the largest privately-held stafhng company in the world, according to the company’s exchange filing.

Shares of the Mukesh Ambani-led firm rose as much as 7.3 percent, the most since May 16, 2014, to Rs 1,168 – a fresh 52-week high for the stock.

Reliance Jio will start charging customers for its services, which is a big positive said, Naveen Kulkarni, telecom analyst, PhillipCapital. “The telecom industry is in a consolidation mode, so people have started to believe that Jio will make some money in this business. There was a huge amount negativity around this business and now this goes out as the business will start making some money,” he told BloombergQuint in a phone conversation.

However, he added that the net profit from RIL’s telecom unit could take another three to five years. “As long as it is moving in the right direction there is a certain upside in the stock,” he said.

Jal Irani of Edelweiss expects profitability on the earnings before interest, tax, depreciation and amortisation front for Reliance Jio by FY19.

Indian shares climbed for a fifth straight session led by index heavyweight Reliance Industries and tracking mostly positive trade in Asian equities.

The S&P BSE Sensex gained 0.4 percent to 28,880 while the NSE Nifty 50 jumped as much as 8,939. Both the key indices were trading at over six-month high with the 50-share benchmark around 30 points away from its 52-week high.

The market breadth was skewed in favour of the buyers. About 812 stocks advanced, 680 declined and 408 remained unchanged on the NSE.

Stocks Radar: Tata Chemicals, Dr Reddy’s, Coal India And More

• Ambuja Cements cut to hold versus buy at Reliance Securities
• Apollo Hospitals: To consider Rs 200 debenture allotment on February 23
• Bharat Electronics: Government OFS floor price set at Rs 1,498 a share
• Castrol India: Q4 profit Rs 156 crore versus estimated Rs 124 crore
• ITD Cementation: Q4 profit Rs 13.01 crore versus Rs 30.06 crore YoY
• Tata Chemicals: Says Haldia plant to be shut Feb. 21- April 15 due to ammonia pipeline relocation
• Tata Motors: Range Rover unveils first addition to its SUV line since 2010
• United Spirits: Clarifies not aware Diageo exploring option to raise stake
• HDFC Bank, ICICI said to approach government on Axis Bank (CNBC-TV18)
• Tata, Volkswagen seen in advanced partnership talks (Economic Times)

Offerings

• Government of India offers up to 1.12 crore shares of Bharat Electronics; offer price at 3.98 percent discount to previous close
• Retail investors can bid Thursday

For a complete list of stocks to watch, click HERE

• India FIPB clears FDI proposals valued at more than Rs 12,000 crore
• FIPB deferred decision on Gland Pharma’s FDI proposal
• India’s April-Dec. net market borrowings at Rs 3.62 lakh crore or 85 percent of budget estimate: Finance Ministry report
• April-Dec. gross borrowings at Rs 5.02 lakh crore
• Government issued Rs 1.61 lakh crore of dated securities in Oct.-Dec. quarter

• India official says Axis Bank merger report totally baseless
• Taiwan to levy steel anti-dumping duties from six countries
• India’s defense panel approves MiG-29K repair unit in Goa
• India said to consider petcoke import curbs, tax to limit use
• Government may consider imposing import duty on wheat if needed
• Global funds sell Rs 1,440 crore rupees of local stocks; domestic funds buy Rs 1,540 yesterday: Provisional data
• Adverse cane weather in Brazil is supporting sugar price: Sucden
• Nifty Index companies’ profits climb 19 percent in Q3; miss estimates (Bloomberg)

After Tuesday's holiday, it looks like the rupee will extend its gains against the dollar today, in line with other Asian currencies. The greenback slipped as Cleveland Chief Loretta Mester said that Fed doesn’t want to surprise the market on interest rates.

Investors will also be watching out for U.S. Fed as the central bank releases minutes from its most recent meeting, which could give investors a look on how the members see Donald Trump's policies.

Back home, the RBI's recent hawkish commentary and upside risks to inflation suggest yields are only headed higher. FirstRand expects 10-year benchmark bond yields to climb to 7.25 percent over the next three months as the government starts borrowing for the year beginning April.

Later in the day, the central bank will auction Rs 10,000 crore of treasury bills.

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, nudged 0.1 percent higher to 8,921.

Most Asian stocks climbed, following the S&P 500 index’s record highs and oil extending gains above $54 a barrel after OPEC’s top official said the group intends to achieve full compliance with a deal to trim production.

Japan’s Topix index fluctuated as the yen increased as money managers grapple with political uncertainty as the Fed prepares to lift interest rates again later this year.

The dollar slipped as Federal Reserve Bank of Cleveland President Loretta Mester said policy makers don’t want to surprise the market on interest rates. The Fed will release the minutes of its most recent monetary policy meeting later today, which might provide new insight into the U.S. central bank's views on interest rates.

Expectations for an interest rate increase at the Fed’s next policy meeting have been on a rise since Chair Janet Yellen indicated that she foresees additional tightening this year regardless of whether President Trump follows through on plans to pursue a pro-growth fiscal policy.