Sensex, Nifty Log Best Single-Day Rally In Three Months

Indian stocks clocked their best single-day rally since Oct. 9, 2019.

The S&P BSE Sensex rose 1.55 percent to close at 41,252.35 and the NSE Nifty 40 rose 1.58 percent to end at 12,215.40. The broader markets represented by the NSE Nifty 500 Index rose 1.52 percent.

The market breadth was tilted in favour of buyers. About 1,337 stocks advanced and 464 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Auto Index’s 2.7 percent gain. On the flipside, the NSE Nifty IT Index was the only sectoral loser, down 0.18 percent.

Aster DM Healthcare

• Stock rose 7.2 percent to Rs 171.70 each.
• Board approves buyback of 1.13 percent stake at Rs 210 per share aggregating to Rs 120 crore; record date set as January 24

Sunteck Realty

• Stock rose 7.1 percent to Rs 454.85 apiece.
• Signs MoU with SBI for financing 3 residential projects under bank’s Residential Business Finance with buyer guarantee scheme.

Finolex Industries

• Stock rose 6.2 percent to Rs 171.70 each.
• HSBC Maintained 'Buy'; hiked target price to Rs 710 from Rs 680.
• Decline in raw material prices to help PVC resin earnings; pipes business should recover too post extended monsoon, said the brokerage.

BGR Energy Systems

• Stock rose 16.4 percent to Rs 40.80 each.
• Secured order worth Rs 224 crore from Tamil Nadu Transmission Corporation for building a power station.

Stocks rose across Europe and Asia and U.S. equity futures climbed on Thursday, extending a relief rally after America and Iran appeared to step back from a deeper military conflict. The yen and gold declined and oil steadied after a plunge.

• Futures on the S&P 500 Index rose 0.3 percent.
• The Stoxx Europe 600 Index rose 0.5 percent.
• The MSCI Asia Pacific Index gained 1.3 percent.

Shares of Infosys rose 1.4 percent to Rs 728.25. The stock had risen as much as 1.9 percent earlier.

About 3.5 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Besides, the software developer is set to announce its December quarter results tomorrow.

Shares of Jindal Saw rose as much as 12.4 percent to Rs 94.50, the highest since March 15, 2019.

Trading volume was more than five times its 20-day average, Bloomberg data showed. The stock extended gains for the third consecutive trading session.

The Relative Strength Index was above 70, indicating that the stock may be overbought, according to Bloomberg data.

Shares of Jindal Saw rose as much as 12.4 percent to Rs 94.50, the highest since March 15, 2019.

Trading volume was more than five times its 20-day average, Bloomberg data showed. The stock extended gains for the third consecutive trading session.

The Relative Strength Index was above 70, indicating that the stock may be overbought, according to Bloomberg data.

About 67 lakh shares of Avenue Supermarts changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Security & Intelligence Services

• Stock rose as much as 4.4 percent to Rs 982.
• Trading volume was more than 30 times its 20-day average.

Gujarat State Fertilizers & Chemicals

• Stock rose as much as 9.7 percent to Rs 81.80.
• Trading volume was more than 18 times its 20-day average.

Godrej Agrovet

• Stock rose as much as 7.7 percent to Rs 572.
• Trading volume was more almost 12 times its 20-day average.

Linde India

• Stock rose as much as 13.4 percent to Rs 732.
• Trading volume was more than eight times its 20-day average.

Shares of Aster DM Healthcare rose as much as 7.2 percent, the most in over two months, to Rs 171.20.

The company plans to buy back up to 120 crore shares or about 1.13 percent equity at Rs 210 apiece, according to its statement.

Trading volume was more than two times its 20-day average, Bloomberg data showed. The scrip traded at 26 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of Yes Bank extended gains for the second consecutive trading session and rose as much as 5.3 percent to Rs 48.50.

The Mumbai-based lender plans to consider fundraising proposals in its board meeting on Jan. 10, according to its statement to the exchanges on Jan. 8.

The stock declined 74 percent in the past 12 months compared to a 14 percent gain in the Sensex.

The NSE Nifty Bank Index extended gains for the third consecutive trading sessions. The 12-share gauge rose 717 points to trade above 32,000.

Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Bank Index’s 2.4 percent gain. On the flipside, the NSE Nifty IT Index was the only sectoral loser, down 0.38 percent.

Indian stocks extended gains to trade at day’s high.

The S&P BSE Sensex rose as much as 1.6 percent or 646 points to 41,463.93 and the NSE Nifty 50 rose as much as 1.6 percent to 12,217.90. The broader markets represented by the NSE Nifty 500 Index rose as much as 1.55 percent.

Nifty’s 12,200 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Jan. 9, rose 478.57 percent to Rs 20.25. Over 11.25 lakh shares were added to the open interest which stood at over 40.80 lakh shares.

Shares of Max Financial Services extended declines for the second consecutive trading session.

The stock fell as much as 16.1 percent, the most since July 2016, to Rs 468.75, the lowest since Nov. 14, 2019.

Trading volume was more than 18 times its 20-day average, Bloomberg data showed. Of the shares traded, 43 percent were at the ask price and 39 percent were at the bid.

The Indian rupee extended morning gains against the U.S. dollar. The home currency appreciated as much as 0.46 percent to 71.37 against the greenback.

The local legal tender strengthened for the third consecutive trading session.

Shares of oil retailers edged higher as U.S.-Iran appeared to be stepping back from deeper military conflict. The geo-political development resulted in cooling off of crude oil prices.

This is after crude oil prices declined 4.2 percent to close at $65.44 per barrel on Wednesday.

• Hindustan Petroleum rose 4.9 percent, the most in three months, to Rs 253.50 each.
• Indian Oil advanced 3 percent to Rs 125.50 apiece.
• Bharat Petroleum advanced 3.2 percent, biggest intraday rally in a month, to Rs 474.40 each.

Indian equity benchmarks opened higher reflecting their Asian peers as U.S.-Iran appeared to be stepping back from deeper military conflict. Oil marketers were among the top gainers on account of the geo-political development.

The S&P BSE Sensex rose 1.30 percent to 41,344.75 and the NSE Nifty 50 rose 1.31 percent to 12,153.15. The broader markets represented by the NSE Nifty 500 Index rose 1.29 percent.

The market breadth was tilted in favour of buyers. About 1,382 stocks advanced and 292 shares declined on National Stock Exchange.

Ten out of the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Bank Index’s 2.2 percent gain. On the flipside, Nifty IT Index was the only sectoral loser, down 0.13 percent.

Shares of the budget carrier jumped close to 10.4 percent, the most in nearly two weeks, to Rs 109.60 apiece.

The trading volume was nearly thrice the 20-day average, Bloomberg data showed. Eleven out of 15 analysts tracked by Bloomberg had a ‘Buy’ rating on the stock while three had recommended ‘Hold’. One analyst had a ‘Sell’ rating.

Shares of the country’s largest software exporter declined 1.5 percent intraday to Rs 2,222.10 apiece.

This comes as the company is likely to postpone its third quarter results scheduled to take place today, according to a Business Standard report citing unnamed sources. The delay is on account of NCLAT order earlier this month ruled that Cyrus Mistry’s dismissal as chairman of Tata Sons Ltd. as illegal. Supreme Court to hear Tata Sons plea challenging the plea on Jan. 10.

The stock advanced 19 percent in the past 12 months compared to a 13 percent gain in the Sensex.

Shares of the country’s largest carmaker rose 1.6 percent intraday to Rs 7149 apiece.

Maruti Suzuki India Ltd. on Wednesday reported a 7.88 percent increase in production in December at 1.16 lakh units, the second successive month of hike after reducing it for nine months in a row due to demand slump.

The stock traded at 33 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of the drugmaker rose 2.7 percent intraday to Rs 568.40 each.

Alembic Pharma’s joint venture Aleor received zero observations by U.S. Food and Drug Administration for its formulation manufacturing facility in Gujarat, according to its exchange filing. Inspection was carried on from Jan. 6-8. Alembic Pharma has 60 percent stake in the joint venture, while the remaining stake is owned by Orbicular.

The trading volume was more than 11 times its 20-day average for this time of the day, according to Bloomberg data.

Shares of the telecom operator rose as much as 3.5 percent to one-month high of Rs 474.95 apiece.

Bharti Airtel, in an exchange filing, said it launched qualified institutional placement to raise Rs 14,400 crore at an indicative floor price of Rs 435 – discount of 5.2 percent to last closing. Fundraise via equity share at indicative floor price would lead to an equity dilution of 6.1 percent on the expanded equity base.

The company will also be raising $1 billion via issue of foreign currency convertible bonds with a green-shoe option to raise another $250 million, the filing said, adding that the proceeds of the issue will be used by the company for payments of adjusted gross revenue dues, pare debt and for general corporate purposes.

The stock has gained 52 percent in the past 12 months compared with a 13 percent gain in the Nifty Index.

Indian equity benchmarks opened higher reflecting their Asian peers.

The S&P BSE Sensex rose 1.08 percent to 41,266.50 and the NSE Nifty 50 rose 1.14 percent to 12,163.30. The broader markets represented by the NSE Nifty 500 Index rose 1.16 percent.

The market breadth was tilted in favour of buyers. About 1,233 stocks advanced and 282 shares declined on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Bank Index’s 2.5 percent gain.

• Vakrangee to move into ASM Framework.
• Gujarat Sidhee Cement, Centrum Capital, Saurashtra Cement to move into short term ASM Framework.
• Bhageria Industries, Gateway Distriparks, Hisar Metal Industries to move out of short term ASM Framework.
• Somany Home Innovation price band revised to 10 percent.
• Karda Constructions price band revised to 5 percent.

Index Futures

• Nifty January futures closed at 12063.5, premium of 38.2 versus 53.8 points.
• Nifty January futures open interest unchanged.
• Nifty Bank January futures closed at 31444.05, premium of 70.45 versus 93.4 points.
• Nifty Bank January futures open interest up 15 percent, adds 2.1 lakh shares in open interest.

Options

• Nifty PCR at 1.24 versus 1.18 (across all series).

Nifty Weekly Expiry: Jan. 9

• Max open interest on call side at 12,200 (29.5 lakh shares).
• Max open interest on put side at 12,000 (23.2 lakh shares).
• open interest addition seen at 11,800P (+5.5 lakh shares), 11,900P (+5.4 lakh shares), 12,000C (+3.5 lakh shares).

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (24.7 lakh shares).
• Max open interest on put side at 12,000 (39.4 lakh shares).

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.41 percent to 71.42 against the greenback.

• Bharti Airtel launched qualified institutional placement to raise Rs 14,400 crore at an indicative floor price of Rs 435 – discount of 5.2 percent to last closing. Fund raise via equity share at indicative floor price would lead to an equity dilution of 6.1 percent on the expanded equity base. The company will also be raising $1 billion via issue of foreign currency convertible bonds with a green-shoe option to raise another $250 million. Proceeds of the issue will be used by the company for payments of adjusted gross revenue dues, to pay debt and for general corporate purpose. In the third quarter of fiscal year 2020, Bharti Airtel added 2.1 crore 4G users – most in at least the last nine quarters.
• SBI, Sunteck Realty: SBI launched residential builder finance loans with buyer guarantee. Bank has signed a memorandum of understanding with Sunteck Realty for financing three residential projects, said Rajnish Kumar, chairman of SBI. He also stated that the product aims at reducing the chances of insolvency petitions in residential projects. Product is to safeguard home buyers financially, with focus on affordable housing of up to Rs 2.5 crore.
• Adani Green Energy Provisional Q3 Update: Solar PAF at 97.3 percent versus 99.2 percent (year-on-year)-Reduction in average portfolio plant availability was seen due to water logging as a result of heavy rainfall at Kamuthi Solar plant. Solar operational capacity rose 13 percent to 2148 megawatt (AC) and up 15 percent at 2803 MW (DC). Wind Portfolio Capacity Utilisation Factor was at 21.5 percent versus 8.33 percent. Wind operation capacity rose 2 times to 122 MW.
• Alembic Pharma’s joint venture Aleor received zero observations by U.S. Food and Drug Administration for its formulation manufacturing facility in Gujarat. Inspection was carried on from Jan. 6-8. Alembic Pharma has 60 percent stake in the joint venture, while the remaining stake is owned by Orbicular.
• Reliance: Jio launched voice and video calls through WiFi at no additional cost.
• Vedanta: Board approved raising capital via non-convertible debentures aggregating to Rs 2,000 crore. Supreme Court agreed to hear the company’s plea on Goa mine lease. (Bloomberg)
• Sintex Industries defaulted on payment of debt interest aggregating to Rs 5.93 crore, which was due on Jan. 8.
• CSB Bank: V Maheswari has opted for voluntary retirement and will step down from the post of chief financial officer with effect from Feb. 4. BK Divakara has been appointed to become the interim CFO.
• Sadbhav Engineering: Board of Directors of IndInfravit Trust approved preferential issue of 18.88 crore units at Rs 116.75 per unit aggregating to Rs 2,204.82 crore for the company and preferential issue of up to 6.21 crore units at Rs 116.75 per unit aggregating to Rs 725 crore to Sadbhav Infraprojects. Company expects to receive stake sale proceeds for certain road projects on Jan. 31.
• HFCL will acquire 15 percent stake in Nivetti for Rs 16 crore. Target company belongs to the networking and cyber security industry.
• Coffee Day Enterprises appointed Albert Hieronimus as additional director of the company with effect from Jan. 17.
• NCLT has warned Jet Airways Committee of Creditors of contempt of proceedings. (PTI)
• Strides Pharma Sciences: R Ananthanarayanan was appointed new managing director and chief executive officer of the company with effect from January. The company’s founder and former Chairman and MD Arun Kumar to become Chairman with effect from April 1.

• The S&P 500 Index earlier rose with Treasury yields as President Donald Trump’s measured remarks on Iran suggested tensions were easing.
• Federal Reserve officials Richard Clarida, John Williams, James Bullard and Charles Evans speak on Thursday. The U.S. monthly non-farm employment report is due Friday.
• Oil was steady near $60 a barrel, while gold held at $1,557.08 an ounce.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 1 percent to 12,188 as of 8:25 a.m.

Asia stocks rallied, tracking gains in American equities, after the U.S. and Iran appeared to be stepping back from a deeper military conflict. Havens from the yen to Treasuries held losses and oil steadied after its slide.

Shares rose in Japan and South Korea, with stocks in Australia higher along with bond yields, as risk appetite spread to Asia.

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