Sensex, Nifty Close Higher As Metal Pack Shines

Indian equity benchmarks closed higher driven by a rally in metal stocks such as Vedanta, Tata Steel and Hindalco.

The S&P BSE Sensex rose 0.42 percent to 40,581.70 and the NSE Nifty 50 rose 0.52 percent to 11,971.80. The broader markets represented by the NSE Nifty 500 Index rose 0.57 percent.

The Nifty Index may move conclusively beyond 13,000-mark by end of June next year on account of earnings growth. That’s according to Mahantesh Sabarad, Head (retail research), SBICAP Securities.

The market breadth was tilted in favour of buyers. About 1,058 stocks advanced and 715 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Metal Index’s 2.36 percent gain. On the flipside, the NSE Nifty IT Index was the only sectoral loser, down 1.04 percent.

The Nifty Index may move conclusively beyond 13,000-mark by end of June next year on account of earnings growth. That’s according to Mahantesh Sabarad, Head (retail research), SBICAP Securities.

"By the time we are in June next year, there will be a distinct base effect over which a lot of companies will show growth," he said in an interview.

Indian equity benchmarks traded at day’s high in the afternoon session paced by gains in Yes Bank and Tata Motors.

The S&P BSE Sensex rose 0.54 percent to 40,626.30 and the NSE Nifty 50 rose 0.55 percent to 11,976.65 as of 2:30 p.m. The broader markets represented by the NSE Nifty 500 Index rose 0.6 percent.

The market breadth was tilted in favour of buyers. About 1,047 stocks advanced and 677 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Metal Index’s 2.57 percent gain. On the flipside, the NSE Nifty IT Index was the only sectoral loser, down 0.05 percent.

Shares of the Jaguar Land Rover-parent rose as much as 6.3 to a one-week high of Rs 171.95 each.

The trading volume was more than double the 20-day average for this time of the day, according to Bloomberg data.

Shares of Equitas Holdings Ltd. extended their losing streak to a fourth day, falling as much as 5.8 percent to Rs 100.10 apiece—the lowest in three weeks.

The microfinance firm has allotted 4.75 crore shares of Equitas Small Finance Bank to investors, a day after the lender announced a fundraising plan to garner up to Rs 2,500 crore through private placement of the shares.

The shares have fallen 14 percent compared with a 13 percent advance in Sensex.

Shares of the Chennai-based financial services firm rose as much as 1.5 percent to Rs 307.50 each.

The company’s approved issue of equity shares by way of qualified institutions placement to the tune of Rs 1,000 crore, according to an exchange filing. Also, the board approved an interim dividend of Re 1 per share.

The stock traded 10 percent below the Bloomberg one-year consensus target price.

Shares of New Delhi-based gained the most in a week, rising as much as 5.4 percent to Rs 43.80 apiece.

The company has emerged as the highest bidder for the Bhaskarpara coal mine in Chhattisgarh, which was auctioned by the coal ministry recently, according to an exchange filing on Wednesday. Availability of coal from this mine will substantially enhance the operating margins of the company, the filing said.

Trading volume in the Prakash Industries stock was more than quadruple the 20-day average for this time of the day, Bloomberg data showed.

Nifty Metal Index was the top sectoral gainer among the gauges compiled by National Stock Exchange. The index rose 13.8 percent on the back of gains in Vedanta, Tata Steel, JSW Steel.

Shares of the telecom operator rose 4.5 percent intraday to Rs 7 apiece.

Vodafone Idea clarified on the news of the company selling some assets to Brookfield and Edelweiss, according to an exchange notification. The company has denied such negotiations taking place between the aforementioned parties.

The stock has declined 68 percent in the past 12 months compared with a 13 percent gain in the Nifty Index.

Indian equity benchmarks sustained their opening gains led by a rally in metal stocks.

The S&P BSE Sensex rose 0.26 percent to 40,520.10 and the NSE Nifty 50 rose 0.32 percent to 11,947.45 as of 12:30 p.m.. The broader markets represented by the NSE Nifty 500 Index rose 0.2 percent.

The market breadth was tilted in favour of buyers. About 992 stocks advanced and 619 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Metal Index’s 1.61 percent gain. On the flipside, the NSE Nifty Media Index was the only sectoral loser, down 0.27 percent.

Shares of the Bengaluru-based bank rose 59 percent to Rs 58.75 each on its stock market debut in the National Stock Exchange.

The stock rose as much as 69.7 percent to Rs Rs 62.80 later in the day. Last week, the offer was subscribed more than 165 times at a price band of Rs 36-37 per share.

The mass-market small finance bank caters to unserved and underserved segments, and is present in 24 states and union territories, with 552 banking outlets and 441 automated teller machines.

Shares of the construction conglomerate rose 1.4 percent intraday to Rs 1,281.45 each.

The firm’s heavy civil infrastructure division won a ‘significant order’ from Rail Vikas Nigam Ltd. for construction of tunnels in the state of Uttarkhand, an exchange filing said. L&T classifies orders between Rs 1,000-2,500 crore as ‘significant’.

The stock traded 17 times its estimated earnings per share, Bloomberg data showed.

Shares of the private lender rose as much as 4.8 percent to Rs 44.85 each.

The company said deferring investor decision was not a time-buying tactic, according to a Bloomberg report. it plans to club other offers from investors before reaching a financial decision, the report added.

The relative strength index was below 30, indicating the stock may be oversold.

Indian equity benchmarks opened higher, led by the gains in Yes Bank and automakers.

The S&P BSE Sensex rose 0.34 percent to 40,554.60 and the NSE Nifty 50 rose 0.31 percent to 11,944.05. The broader markets represented by the NSE Nifty 500 Index rose 0.3 percent.

The market breadth was tilted in favour of buyers. About 885 stocks advanced and 448 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Bank Index’s 0.86 percent gain. On the flipside, the NSE Nifty Media Index was the only sectoral loser, down 0.32 percent.

Index Futures

• Nifty December futures closed at 11938, premium of 28 points versus 41.4 points.
• Nifty December futures series open interest up 1 percent, adds 1.4 lakh shares in open interest.
• Nifty Bank December futures closed at 31,314, premium of 57.5 points versus 66.2 points.
• Nifty Bank December futures series open interest down 7 percent, sheds 1 lakh shares in open interest.

Options

• Nifty PCR at 1.20 versus 1.17 (across all series).

Nifty Weekly Expiry: Dec 12

• Max open interest on call side at 12,000 (26 lakh shares).
• Max open interest on put side at 11,900 (21.6 lakh).
• Open interest addition seen in 11,850P (+5.6 lakh shares), 11,900P (+5.2 lakh shares), 12,200C (+1.8 lakh shares).

Nifty Monthly Expiry: Dec 26

• Max open interest on call side at 12,000 (26.2 lakh shares).
• Max open interest on put side at 11.500 (33.3 lakh shares).

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.18 percent to 70.71 against the greenback.

• Bharti Airtel said reports of merging DTH operations with Dish TV are speculative in nature.
• GMR Infra: GMR Airports to consider raising Rs 250 crore via bonds. (Bloomberg)
• Prakash Industries declared successful bidder for Bhaskarpara Coal Mine. Sees coal availability substantially raising margins.
• Cadila Healthcare launched oral anti-diabetic tablet Vinglyn.
• Yes Bank said deferring investor decision not a time-buying tactic. It plans to club other offers from investors before reaching a financial decision. (Bloomberg)
• RSWM: Board approved rights issue up to Rs 150 crore.
• Magma Fincorp: Board approved allotment of non-convertible debentures worth Rs 350 crore to Nederlandse Financierings on a private placement basis.
• Vodafone Idea clarified on the news of the company selling some assets to Brookfield, Edelweiss. The company has denied such negotiations taking place between the aforementioned parties.
• Prestige Estates Projects will consider raising funds on Dec. 14.
• Maruti Suzuki tied up Federal Bank for dealer and retail car financing.
• Phoenix Mills: Atul Ruia will retire from managing director’s as per SEBI guidelines. He will continue to be the chairman and the non-executive director. Joint Managing Director Shishir Shrivastava takes over as managing director with effect from Dec. 11.
• South Indian Bank said that Kerala Infra Fund Management holds 7.83 percent stake in the bank post share allotment.
• Mcleod Russel: Yes Bank has clarified that the bank had filed an application against McLeod Russel, before Kolkata National Company Law Tribunal, as per the insolvency proceedings.

New Listing

• Ujjivan Small Finance Bank’s shares to start trading on BSE/NSE after IPO which gets 166 times demand at Rs 37 each

Good morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, gained 0.40 percent to 11,997 as of 8:37 a.m.

Asian stocks were mixed Thursday after the Federal Reserve signaled U.S. interest rates will remain unchanged throughout 2020 amid a solid economy. Stocks were little changed in Tokyo, climbed in Seoul and slipped in Sydney. S&P 500 futures nudged higher.

Focus now turns to trade ahead of a Sunday deadline for the imposition of U.S. tariffs on Chinese good.

Meanwhile,

• West Texas Intermediate crude rose 0.3 percent to $58.91 a barrel.
• Gold traded little changed at $1,475 an ounce after jumping 0.7 percent.

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