Electronic ticker boards indicate the latest stock figures inside the atrium at the National Stock Exchange (NSE) in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

Nifty Hits 8,380-Mark As Investors Look Beyond Demonetisation

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  • Market Wrap

    Closing Bell

    Indian shares gained the most in nearly two-weeks, tracking positive global cues and as some investors accessed that the worst of the demonetisation pain has been factored in.

    The S&P BSE Sensex climbed 0.9 percent to 27,140 while the NSE Nifty advanced 1.1 percent to 8,380. This was the 50-share index’s first close above the 8,300-mark since November 10. The market breadth too was encouraging with 1,049 stocks advancing, 568 declining and 291 remaining unchanged.

    The S&P BSE Metal Index rose 4.4 percent to 11,228 – a level last seen in October 2014. The second biggest gainer of the day was the S&P BSE Bank Index, which climbed 2.4 percent, the most in two-months.

    Market clocked a two month high as the energy generated by metal stocks following China’s intention to cut down capacity has fuelled the rally. Bank Nifty outperformed as the initial set of results from the private banking space has crossed the hurdle of demonetisation. The dollar remains flat ahead of U.S. president-elect Trump’s press conference today and this has given a push to the risk averse to step into gold.”
    Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services wrote in a note.  

    Market Update

    Deal Of The Day

    Nifty Bank Posts Biggest Single-Day Gains In 2 Months

    The NSE Nifty Bank Index jumped as much as 2.6 percent, the most in a single day since November 10 of last year. IndusInd Bank, on the back of its better-than-anticipated third quarter earnings, led lenders higher and in the process extended the index’s winning streak to day 5.

    IPCA Labs Snaps Losing Streak After Clarifying On News Item

    Shares of the drug maker gained 4.2 percent, snapping a four-day losing streak after it said third party consultants are regularly visiting its three manufacturing plants, which are currently banned from importing products to the U.S. market, to oversee corrective measures being undertaken at the facilities.

    The third party consultants are regularly visiting our manufacturing units which are under USFDA import alert/warning letter and are assisting us in implementing robust remediation measures in a proper and timely manner.”
    Ipca Laboratories said in a regulatory filing.

    Verification of remediation measures implemented by the company is also a part of the assignment given to the third party consultants, it added.

    Last year, the U.S. FDA had put the company's Ratlam-based active pharmaceutical ingredients(API) facility under import alert. Later, the company's formulations manufacturing facilities at SEZ Indore and Piparia (Silvassa) were also put under import alert by US health regulator.

    With PTI inputs

    Nifty I.T. Index Snaps 2-Day Winning Streak

    A gauge of the country’s top 10 information technology companies dropped 0.5 percent, snapping a two-day winning streak on rebound in the local currency.

    European Shares Little Changed

    South Indian Bank Spikes Post Q3 Numbers

    Shares of the private bank gained as much as 4.1 percent to Rs 21.75 after its net profit for the quarter ending December rose to Rs 111 crore as compared to Rs 102 crore in the year ago period.

    The bank’s asset quality remained largely stable with gross non-performing assets at 3.98 percent of the total loan book as against 3.96 percent in the previous quarter.

    Net Non-performing assets reduced to 2.52 percent from 2.77 percent in the previous quarter.

    Chart Of The Day

    India's Biggest Refiner Eyeing Assets

    Mukesh Ambani's Promise To Gujarat's Educational Institutions

    Nifty Crosses 200-DMA

    Top Losers And Gainers

    Rupee Weakens

    The rupee was trading lower by 7 paise at 68.25 against the American currency in early trade today after the dollar gained strength overseas.

    Forex dealers said increased demand for the U.S. currency from importers and dollar's gains against other currencies overseas put pressure on the rupee. They said, however, a higher opening in the domestic equity market capped the rupee losses.

    Yesterday, the rupee had ended 3 paise higher at 68.18 against the American currency in a range bound trade amid weak dollar overseas.

    PTI

    S&P BSE Metal Index Hits 52-Week High

    Shiva Cement Gains On Promoters Plan To Exit

    Shares of the cement maker gained as much as 5 percent after the promoters decided to sell their entire holding to JSW Cement.

    The promoters will sell their 35.62 percent stake at Rs 14 per share aggregating to Rs 97.24 crore. As the promoters are exiting, JSW Cement has made an open offer to public shareholders to acquire 62,40,0000 equity shares for Rs 14 aggregating to Rs 87.36 crore. This constitutes 32 percent of the total share capital of Shiva Cement.

    The Odisha-based company has annual production capacity of 1.32 lakh tonne with plans to expand to 2.6 million tonne in phases.

    Opening Bell

    Indian shares climbed for a second straight session backed by a rally in Asian equities after evidence of quickening price growth in China boosted metals and other commodities.

    The S&P BSE Sensex gained 0.5 percent to 27,050, scaling the mark for the first time since November 11 of last year. The NSE Nifty, meanwhile, jumped 0.6 percent to 8,336, which is also a two-month high for the 50-share index.

    Stocks To Watch

    • Bharat Electronics: To consider stock split on January 27
    • Shiva Cement: Board approved founders selling some shares to JSW Steel
    • Chembond Chemicals: To buy additional 49 percent of I Chembond Water
    • Hind Rectifiers: To consider rights issue of shares to shareholders on Jan. 15
    • Glenmark Pharamceuticals: To focus on oncology, dermatology, respiratory products; to launch inhalers in 3-4 years
    • Tata Motors: Says group December global wholesales up 4 percent to 95,081 units
    • Banco Products to consider mid-year dividend for FY17
    • Bartronics India to consider making investments and transfer of FI division to unit

    Earnings To Watch

    • South Indian Bank Q3

    Talking Points

    • PM Modi urged investors to tap India’s massive market and reiterated his administration’s commitment to economic reform.
    • Benefits of demonetisation unlikely to be strong or long lasting: Fitch Ratings
    • Demonetisation led to surprise loan repayments, says IndusInd Bank
    • Biggest Indian refiner hunts oil assets as demand surges at home (Read more HERE)
    • India extends methyl bromide fumigation waiver for agri imports
    • RBI net sold $2.72 billion of forex in November in spot market
    • Global funds sell Rs 21.2 crore of local stocks; domestic funds buy Rs 253 crore yesterday: Provisional data
    • India’s oil use jumped 11 percent to record last year as demand grows
    • Country’s gasoline consumption this year to grow 10 percent: FGE

    Money Market Heads-Up

    The dollar is rising again keeping the Asian currencies under pressure ahead of U.S. President-elect Donald Trump's press conference later in the global day. It is important to note that traders are inclined to keep risky bets off the table as they await clues on potential fiscal stimulus and trade policies of the new president to gauge the impact on global growth.

    The rupee, meanwhile, had a steady session on Tuesday and was little changed at 68.18 per dollar. Today, the currency is likely to join its Asian peers to trade lower against the greenback.

    In sovereign bonds, it seems like a tussle between two equal and opposing forces. Estimates that growth and inflation are slowing down bode well for the market but investors are avoiding too much exuberance as the threat of inflation rearing its head again remains a possibility.

    Yield on the benchmark note are stuck in a range of 6.36-6.40 percent and may stay here till the consumer price inflation print on Thursday.

    Good Morning!

    The Nifty futures on the Singapore Stock Exchange, an early indicator of Nifty’s performance in India, climbed 0.4 percent to 8,331.

    Asian stocks rallied this morning, led by a surge in mining companies, after evidence of quickening price growth in China boosted metals and other commodities. Gold for immediate delivery slipped 0.2 percent to $1,186.02 an ounce, declining for the first time this week.

    The fastest pace of growth for Chinese producer prices in five years propelled gains in industrial metals and other raw materials amid prospects the world’s second-largest economy will export inflation around the world via its supply chains.

    Crude oil prices edged higher but remained near a one-month low amid concern the U.S. is raising its output forecast just as OPEC members start to cut production.

    Analysts project U.S. crude stockpiles rose by 1.5 million barrels last week, muting optimism fuelled by Russia, Iraq, Kuwait, Kazakhstan and Azerbaijan saying they’re implementing last year’s accord to cut production. The supplies data is due late Wednesday.

    U.S. stocks fluctuated with the dollar, while Treasuries retreated as post-U.S. election asset moves stalled a day before Donald Trump is slated to hold a press conference that could provide detail on his policy preferences.

    BloombergQuint