A monitor displays a stock chart on the floor of the New York Stock Exchange (NYSE) in New York, U.S. (Photographer: Michael Nagle/Bloomberg)

Rate Cut Hopes Help Sensex, Nifty Wipe Out Early 2019 Losses

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Closing Bell: Sensex Surges 465 Points, Nifty Settles Above 10,850

Indian equity benchmarks rallied on rate cut hopes after inflation cooled down to lowest level in eighteen months in December.

The S&P BSE Sensex rose 1.30 percent or 465 points to 36,318 and the NSE Nifty 50 Index jumped 1.39 percent or 149 points to 10,887.

Consumer price inflation fell to its lowest in 18 months in December 2018 following a persistent decline in food prices and a drop in fuel costs. The easing price pressures, together with moderating growth, may prompt a rethink on interest rates when the Monetary Policy Committee meets next month.

Retail inflation fell to 2.19 percent in December compared with 2.3 percent in November, government data released on Monday showed. A Bloomberg poll of 36 economists had estimated inflation at 2.2 percent for December 2018.

All the 19 sector gauges compiled by BSE ended higher led by the S&P BSE Information Technology Index's 3 percent gain.

Mid- and small-cap shares also witnessed buying interest as the S&P BSE MidCap Index rose 0.60 percent and the S&P BSE SmallCap Index climbed 0.70 percent.

Trident Surges After Profit Beats Estimates In December Quarter

Shares of the Ludhiana-based textile maker rose as much as 7.94 percent, the most since Oct. 15, to Rs 75.45 after its profit rose 53 percent in December quarter beating Bloomberg consensus estimates.

Key earnings highlights:

  • Revenue up 18 percent at Rs 1,291.39 crore versus Rs 1,094.10 crore (YoY)
  • Net profit up 53 percent at Rs 112 crore versus Bloomberg estimate of Rs 99.4 crore (YoY)
  • EBITDA up 21.4 percent at Rs 242.6 crore versus Rs 199.9 crore
  • Margins at 18.8 percent versus 18.3 percent
  • Other income at Rs 15 crore
  • Announces dividend of Rs 1.20 per share

F&O Check: Premium On Nifty's 11,000 Call Surges 66%

Nifty's 11,000 call option contract was among the most active option contracts on the National Stock Exchange.

Premium on the contract surged 66 percent to Rs 75.10. Over 6.50 lakh shares were reduced from the open interest which stood at over 42.72 lakh shares.

Network 18 Off Day’s High After Reporting Loss In December Quarter

Shares of the Noida-based news channel operator came off day's highs and traded 0.9 percent higher at Rs 40.25 after it reported loss in December quarter.

Key earnings highlights:

  • Net loss at Rs 1.11 crore versus profit of Rs 8.14 crore (YoY)
  • Revenue at Rs 1,524 crore versus 366.02 crore (YoY)
  • Other income at Rs 14.03 crore

NTPC Struggles Amid Block Deals

  • NTPC has 34.8 lakh shares change hands in two block deals. Stock down 0.34 percent at Rs 145.05.

Buyers and sellers were not immediately known

Source: Bloomberg