Sensex, Nifty Post Best Week In 3 Months On ECB Optimism
US stocks rose, amid talks that Trump will boost spending, shoring up growth in America.
Closing Bell
Indian benchmark indices completed their biggest weekly gain since September, on optimism that foreign investors will buy the nation’s shares after the European Central Bank signalled it remains ready to add more stimulus.
The S&P BSE Sensex rose 0.2 percent to 26,752 while the NSE Nifty gained nearly 0.2 percent to 8,261. The 50-share index closed above the 8,250-mark for the first time since November 11.
The market breadth was skewed in favour of the buyers at 848 advances, 759 declines and 278 stocks remaining unchanged.
Three of the top five stocks biggest gainers on the Sensex were lenders, while autos led by two-wheeler maker Bajaj Auto and world largest coal producer.
Stocks added to previous day’s gains especially by the small and midcaps, but with U.S. Fed likely to raise rates next week, Indian markets followed global cues in taking a cautionary stance towards close. Firmness early in the day also helped by positive expectations from upcoming IIP release especially with recent data showing eight core output data, a leading indicator, had recorded the biggest gain in in six months.”Anand James, chief market strategist, Geojit BNP Paribas Financial Services said in a note.
Market Wrap
Sensex, Nifty Head For Best Weekly Gains In 3-Months
Both the Sensex and the Nifty have gained little over 2 percent this week. It is the indices’ best weekly gain since week-ended September 4.
Top Sensex Weekly Gainers
- Adani Ports & SEZ (+7%)
- Tata Motors (+6.8%)
- Tata Steel (+5.6%)
- ONGC (+5%)
- SBI (+4.3%)
- ITC (+4.1%)
Top Sensex Weekly Losers
- Sun Pharma (-6.1%)
- TCS (-1.6%)
- Axis Bank (-1.5%)
- GAIL India (-0.6%)
- Wipro (-0.4%)
NSE Said to Prepare $1.5 Billion IPO Filing
The National Stock Exchange of India Ltd. plans to file a draft prospectus this month for an initial public offering of about Rs 10,000 crore ($1.5 billion), pushing ahead with the nation’s biggest listing in more than six years after its top executive resigned, Bloomberg reported quoting people with knowledge of the matter.
NSE’s offering would be the largest IPO in the country since Coal India Ltd.’s 2010 share sale, which raised Rs 15,480 crore, according to data compiled by Bloomberg.
It may compete for investors with cross-town rival BSE Ltd., Asia’s oldest stock exchange, which filed a prospectus with the capital markets regulator in September.
For more details on NSE’s IPO plans, click HERE
SAIL Extends Gains To Day 5 Despite Q2 Loss
Shares of the state-owned steel maker jumped as much as 2 percent to Rs 54, extending its winning streak to day 5, and in process outperformed the S&P BSE Metal Index, which is down 0.2 percent.
The country’s top producer booked a loss for the sixth straight quarter, almost in line with analyst estimates.
The company lost Rs 730 crore ($108 million) in the three months through September compared with a shortfall of Rs 1,110 crore a year ago, the company said in a statement on Thursday. That compares with Rs 760 crore estimated by 14 analysts in a Bloomberg survey. Sales climbed about 20 percent to Rs 12,430 crore. (More details HERE)
European Shares Decline
BQSpotted
Allsec Technologies More Than Quadruples In 9-Months
- Up 7 percent in trade today
- Market cap of Rs 600 crore
- Has gained 313 percent since 52-week low
- A third-party business process outsourcing (BPO) firm
Sheela Foam Makes Impressive Stock Market Debut
Shares of the mattress maker made its stock market debt at Rs 860 apiece, which was a 17.8 percent premium to its issue price. The stock further gained 22.3 percent (39.5 percent in total) to Rs 1018 apiece on the BSE.
The initial public offering, aimed at raising Rs 510 crore, was subscribed 5.09 times during the three-day offer period ending December 1. The company raised Rs 153 crore by allotting shares to anchor investors, including HDFC Mutual Fund and SBI Mutual Fund.
The portion set aside for qualified institutional buyers was subscribed 14.51 times, while the non-institutional investors quota received a 3.35 times subscription. The quota for retail investors was subscribed only 44 percent, according to data available on the NSE.
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Movers & Shakers: Tata Motors, NHPC, Jindal Steel & Power And More
Rupee Snaps Winning Streak
Ending its three-day winning run, the rupee retreated from nearly a one-month high by falling 23 paise to 67.58 against the U.S. dollar in early trade at the forex market on fresh demand for the American unit.
Moreover, weakness in other currencies including euro against the dollar after ECB's decision to extend asset purchases until the end of next year, weighed on the rupee, forex dealers said.
However, a higher opening of the domestic equity market, capped the fall, the brokers added.
Yesterday, the rupee had gained 27 paise to close at a near one-month high of 67.36 against the U.S. currency due to continuous selling of the greenback by exporters and banks.
(PTI)
BQSpotted
Intellect Design Arena Jumps 14%
- A banking and insurance solutions provider
- Famous investor Rakesh Jhunjhunwala along with his wife owns close to 6 percent stake in the company.
- Market capitalisation of Rs 1,668 crore
Hindustan Zinc At 52-Week High
- Scaled 52-Week high of Rs 288
- 100 percent returns in a 1-year period
- Plans to enter the solar business with an investment of Rs 630 crore
- Company posted an EBITDA growth of 84 percent in the second quarter of the current financial year
Opening Bell
Indian shares climbed to a near one-month high tracking a global equity market rally after the ECB extended its stimulus programme amid speculation that Trump will boost spending, shoring up growth in the world’s largest economy.
The S&P BSE Sensex gained 0.3 percent to 26,779 while the NSE Nifty advanced 0.2 percent to 8,263. The market breadth was skewed in favour of the buyers at 866 advances, 534 declines and 458 stocks remaining unchanged.
Money Market Heads Up
5 Things To Watch
For a complete list of stocks to watch, click HERE
IPO Watch
- Sheela Foam shares listing on BSE/NSE after IPO gets 5.1 times demand last month
- Laurus Labs IPO gets demand for 4.54 times shares offered: NSE
- Polaris Consulting OFS for retail investors opens; OFS for non-retail portion gets 3.1 times demand yesterday
Earnings Reaction To Watch
- Jindal Steel: Q2 loss Rs 746 crore; estimate Rs 449 crore loss
- MMTC: Q2 profit Rs 10.46 crore versus Rs 44.6 crore
- NLC India: Q2 profit Rs 300 crore versus Rs 348 crore
- Puravankara Projects: Q2 profit Rs 42.12 crore versus Rs 26.9 crore
- Seamec: Q2 loss Rs 20.22 crore versus Rs 28.31 crore loss
- Steel Authority: Q2 loss Rs 731 crore; est. Rs 756 crore loss
Earnings To Watch
- DLF
- Gayatri Projects
- Gujarat Industries Power
- Jaypee Infratech
- J.Kumar Infraprojects
- Lanco Infratech
- NMDC
- Rolta India
- SJVN
Talking Points
- Mistry seeks Tata Chemicals holders support to block ouster move
- Battle of the century imperils Tatas as investor loyalty tested
- Draghi’s anti-taper keeps ECB stimulus live to tackle 2017 risks
- India to offer discount to users paying fuel bills digitally
- U.S. and India finalise major defense partner status
- Rupee carry appeal burnished by India rate surprise as Fed looms
- India wheat imports seen surging more than 5-fold on shortage
- Indonesia’s President Widodo to visit India next week; Tajikistan’s president from December 14-18
- India banks asked to prioritise cash distribution to embassies
- Global funds buy Rs 699 core of local stocks; domestic funds buy Rs 64.32 crore yesterday: Provisional data
- Renault-Nissan plant in India said to shut shift, cut jobs (Times of India)
Data To Watch
- 5:30pm: October India Industrial Production; prior 0.7 percent, no estimate
- 12/09-12/30: Third quarter balance of payments current account balance; no estimate (Prior -$0.30b)
- 12/09-12/15: India November exports; no estimate (prior +9.6 percent)
Imports; no estimate (prior +8.1 percent)
Trade Balance; no estimate (prior -$10.16 billion)
Good Morning!
The Nifty futures on the Singapore Stock Exchange, an early indicator of Nifty’s performance in India, gained 0.5 percent to 8,281.
Asian equities climbed and bonds fell this morning, after the European Central Bank (ECB) pledged to cut bond buying while at the same time extending quantitative easing until the end of 2017.
Brent crude oil prices remained unchanged at $53.91 per barrel before talks on Saturday in Vienna among the OPEC and 14 other nations. The meeting will potentially give investors clues as to whether the OPEC agreement to cut production to stablise prices will be fulfilled.
Besides that, attention will now shift to the U.S. Federal Reserve’s policy meet next week, with traders all but convinced the world’s largest economy will end the year with an interest rate hike.
Gold for immediate delivery fell for a second session, declining 0.3 percent to $1167.63 an ounce.
U.S stock benchmarks set new records, amid speculation that President-Elect Donald Trump will boost spending, shoring up growth in America.
The number of people filing for unemployment benefits in the U.S. fell by 10,000 to 2,58,000 for the week ending December 3, according to a Labor Department report. The median forecast of economists surveyed by Bloomberg had pegged the figure at 255,000.