Tech mistake |The benchmark indices extended their winning streak for the second consecutive day, settling nearly 0.5 percent higher on Thursday on the expiry of December-series futures and options (F&O) contracts.
The S&P BSE Sensex ended at 35,807, up 157 points or 0.44 percent, while the broader Nifty50 index settled at 10,780, up 50 points or 0.47 percent.
Among the sectoral indices, the Nifty IT index rose 1.4 percent led by Infosys and TCS. Nifty FMCG index, too, rose, 1.3 percent led by Marico and ITC.
The broader market indices, too, settled higher in line with the benchmark peers. The S&P BSE MidCap index rose 0.3 per cent to 15,218 level, while S&P BSE SmallCap index ended at 14,482, up 0.3 per cent.
Shares of select public sector undertaking (PSU) banks traded higher by up to 7% on the BSE in intra-day trade in hopes of the central government’s bank recapitalization announcement. Bank of Maharashtra, Central Bank of India, United Bank of India, UCO Bank, Corporation Bank, and Dena Bank were up in the range of 2% to 7% on the National Stock Exchange (NSE).
The central government would release Rs 286.15 billion before the end of this month towards a fresh tranche of funds to recapitalize state-run banks, according to a source in the finance ministry.
Global Markets
Asian shares on Thursday rode a dramatic surge on Wall Street as markets, battered by a recent drum roll of deepening political and economic gloom, cheered upbeat US data and the Trump administration’s effort to shore up investor confidence.
In a buying frenzy as spectacular as the recent rout, US stocks soared with the Dow Jones Industrial Average rocketing more than 1,000 points for the first time on Wednesday. That helped push MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.6 percent and away from eight-week lows.
Japan’s Nikkei managed to pull out of the bear market territory it had entered on Tuesday, closing 3.9 percent higher, while Australian shares jumped 1.9 percent.
Oil Prices
Oil prices fell more than 1 percent on Thursday after rebounding 8 percent in the previous session, as worries over a glut in crude supply and concerns over a faltering global economy pressured prices even as a stock market surge offered support.
Brent crude oil was down 70 cents, or 1.3 percent, at $53.77 a barrel. US light crude oil was 50 cents lower at $45.72.
Oil prices reached multi-year highs in early October but have fallen almost 40 percent since then and are now approaching their lowest levels for 18 months. Brent is heading for losses of almost 30 percent this year while the US contract has dropped almost 25 percent.
(with Reuters input)
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03:45 PM
Top sectoral gainers and losers on NSE
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03:44 PM
S&P BSE Sensex: Top gainers and losers
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03:34 PM
Market at closeThe S&P BSE Sensex gained 157 points or 0.44 percent to close at 35,807 while NSE’s Nifty50 index ended at 10,780, up 50 points or 0.47 percent. -
03:18 PM
CD Equisearch on M M ForgingsRecommendation: ACCUMULATECurrent price: Rs 650Price target: Rs 719M&HCV segment, which has so far remained indifferent to revision in axle load carrying norms, thereby reflecting a healthy underlying demand, is expected to witness volume growth of 18-20% during FY19 and healthy growth in the next fiscal, as well as India, prepares to adopt the BS-VI emission norms from April 2020 onwards. -
02:53 PM
Reliance Securities on State bank of IndiaTarget Price: Rs 358State bank of India is the most critical Public Sector Bank of India. It is a very well-managed bank among the large public sector banks that have passed the peak of the NPA challenges. Credit growth is improving and we expect credit growth of 11% in FY19. The reporting quarter is likely to be very strong with reasonable credit growth and solid treasury gains as bond yields have declined sharply. Earnings are likely to see a marked jump in the quarter on account of improving operating performance and strong treasury income as compared to a loss in the base quarter. SBI trades at 1.5x P/ABV which is reasonable. We value the company at Rs 358 per share based on SOTP based valuation methodology. -
02:42 PM
Top gainers on BSE500
COMPANY PRICE( 
)CHG( )CHG(%) VOLUME JP ASSOCIATES 7.62 0.48 6.72 8001814 CENTRAL BANK 36.40 2.25 6.59 528473 BANK OF MAHA 14.90 0.92 6.58 496240 MAX INDIA 85.05 4.55 5.65 236468 PC JEWELLER 85.60 4.50 5.55 1836174 » More on Top Gainers
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02:30 PM
Selan Exploration surges 16% as board approves share buyback proposal
Shares of Selan Exploration Technology moved higher by 16% to Rs 201 on BSE on Thursday after the board approved buyback of equity shares at a price not exceeding Rs 300 per share. The company said the buyback will be for an aggregate amount of Rs 250 million from the open market through a stock exchange mechanism.The board of directors of the company has also declared an interim dividend of 50% (i.e. Rs. 5 per equity share) for the financial year 2018-19. The record date for the interim dividend has been fixed as January 5, 2018. Read more -
02:19 PM
MFs’ entry into commodity derivatives to set the stage for more commodity ETFs
The route for mutual funds to participate in commodity derivatives is opening up. Multi Commodity Exchange has proposed to the market regulator to allow Exchange Traded Funds in commodity derivatives. The Securities and Exchange Board of India is finalizing changes in Mutual Funds Regulations, allowing them formally to participate in commodity derivatives and since ETFs are run by Mutual Fund management companies while allowing MF, the regulator should also allow ETFs. This will set the stage for allowing commodity Exchange Traded Funds. Read more -
02:09 PM
ICRA has a stable outlook on the Indian IT Services industryThe credit profile of Indian IT Services companies remains stable underpinned by its ability to sustain free cash flows despite pressure on revenue growth andmargins. With aggregate operating margins of ICRA sample set at 22.5% for FY2018 coupled with moderate Capex (organic as well as inorganic) and working capital requirements, the free cash flows have remained robust historically. Despite pressures on growth and margins over the medium term, these factors are unlikely to impact the free cash flow generation ability of Indian IT Services companies though there could be moderation in the quantum of such cash flows. -
02:00 PM
Asian debt defaults likely to rise on shadow banking crackdown, rate hikes
A growing chorus of observers expect debt defaults in Asia will spread as weakening currencies and tighter liquidity leave riskier borrowers with higher refinancing costs. Rising failures add to headwinds that governments have to navigate during a politically fraught 2019, with elections in India and Indonesia. Asian dollar bond market defaults tripled to at least nine in 2018 from the previous year, according to Bloomberg-compiled data. Read more -
01:44 PM
Top gainers and losers on S&P BSE Sensex
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01:32 PM
NEWS ALERT Selan Exploration board approves share buyback at maximum Rs 300/share for up to Rs 250 million F&O Expiry
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01:30 PM
Max India extends rally; surges 45% in 10 trading sessionsShares of Max India moved higher by 11 percent to Rs 89.60 on heavy volumes on the BSE. The stock was trading at its three-month high level and has rallied 45 percent in the past 10 trading sessions. In comparison, the S&P BSE Sensex was up 0.38 percent during the same period. READ MORE -
01:11 PM
ICRA assigns stable outlook for Indian pharma companiesThe headwinds from pricing pressure in large regulated markets, especially the USA, increased costs related to regulatory compliances but are largely offset by the growing scale of business, increased focus on specialty/ niche segments, and comfortable balance sheet structure. The domestic pharmaceutical industry has gained adequate scale and generic drug development capabilities over a decade of growth which will keep them in good stead to capture bigger opportunities in the regulated market. The FY2018-2021 CAGR is expected to be around 8-10 percent for domestic pharma companies. -
12:56 PM
Market check
Index Current Pt. Change % Change S&P BSE SENSEX 35,856.04 +206.10 +0.58 S&P BSE SENSEX 50 11,285.77 +63.40 +0.56 S&P BSE SENSEX Next 50 32,659.73 +149.76 +0.46 S&P BSE 100 11,075.95 +60.46 +0.55 S&P BSE Bharat 22 Index -
12:51 PM
Oil prices drop after jump the day before; glut, economy concerns dragOil fell on Thursday after soaring 8 percent in the previous session, as worries over a glut in crude supply and concerns over a faltering global economy pressured prices even as a stock market surge offered support. Brent crude oil futures were down 22 cents, or 0.4 percent, at $54.25 a barrel. They rose 8 percent to $54.47 a barrel the day before. -
12:35 PM
NEWS ALERT KEI Industries’ total order book stands at over Rs 40 billion of which export order book is at Rs 6 billion. The company is not looking at any acquisitions
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12:34 PM
Motilal Oswal on Telecom: F&O ExpiryWe cut Bharti/Vodafone Idea’s target price to Rs 380/Rs 43, respectively, maintaining Buy. The current market situation is governed by a deep liquidity crisis and the lowest point in ARPUs. However, both telcos’ have the capability to manage operations in a cut-throat competitive environment. Also, Bharti and Vodafone Idea’s strong promoter background should help them to weather the storm, albeit with some bruises. -
12:33 PM
Motilal Oswal on Petronet LNGThe stock is trading at 11.1x Dec’20 EPS of INR20.1 and 6.6x Dec’20 EV/EBITDA. We value the stock using DCF (WACC of 12%, terminal growth of 3%). With atarget price of INR317, we reiterate our Buy rating on the stock.Key triggers to watch out for:
(i) progress on the completion of Kochi-Mangalore pipeline,
(ii) ramp-up of domestic gas production and
(iii) progress of Dahej expansion from 15mmtpa to 17.5mmtpa. Deployment of cash remains a challenge in the absence of commensurate imminent projects. However, management has shown prudence in terms of shortlisting prospective projects. Dividend payout is also likely to remain high in the absence of imminent cash outgo on projects. -
F&O Expiry 12:32 PM
NEWS ALERT KEI Industries expects FY19 growth at 18-20% and margin at 10%
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12:26 PM
NEWS ALERT HCC approves allotment of 49.76 cr rights shares at Rs 10 each
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12:14 PM
Trade war brings more trade: The unexpected side of the US-China tussleA few days before Christmas, the container ship “SM Shanghai” was steaming toward California’s Port of Long Beach. Just ahead and coming to the end of an 11-day journey from China, the “Ever Lucent” was headed for the nearby Port of Los Angeles, where the “Thomas Jefferson” was preparing to sail in the opposite direction for Xiamen. READ MORE -
11:58 AM
Top gainers on BSE500
COMPANY PRICE( )CHG( )CHG(%) VOLUME BANK OF MAHA 15.02 1.04 7.44 405635 JP ASSOCIATES 7.58 0.44 6.16 3983227 KNR CONSTRUCT. 219.05 12.65 6.13 73407 CENTRAL BANK 36.20 2.05 6.00 300771 PC JEWELLER 85.25 4.15 5.12 1110471 » More on Top Gainers F&O Expiry
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11:44 AM
Nifty IT index is trading around 2% higher
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11:33 AM
Select PSU banks to gain on recap hopes; Central Bank of India up 6%
Shares of select public sector undertaking (PSU) banks were trading higher by up to 7% on the BSE in hopes of the central government’s bank recapitalization announcement. Bank of Maharashtra, Central Bank of India, United Bank of India, Uco Bank, Corporation Bank, and Dena Bank were up in the range of 2% to 7% on the National Stock Exchange (NSE). Read more -
11:17 AM
Equirus Securities on Century Plyboards IndiaPost a disappointing margin performance in 2QFY19 amid higher crude prices and a depreciating INR, CPBI should see gradual margin improvement from 2HFY19 with (a) an expected drop in crude-linked phenol, formaldehyde, and resin prices from 4QFY19 and (b) possible reversals of MTM losses related to FX borrowings due to INR appreciation. However, we acknowledge that the MDF business would likely see increased competitive intensity at least for the next 1.5-2 years, leading to lower MDF revenue growth and below-expected segment margins. We hence cut our FY19/FY20 Sales estimates by 2% each while maintaining our LONG rating as valuations have turned reasonable post the recent correction. Our Mar’20 TP of Rs 209 is set at 25x PE (Rs 206 at 25x earlier) on a TTM EPS of Rs 8.4. F&O Expiry -
11:13 AM
Market check
Index Current Pt. Change % Change S&P BSE SENSEX 35,976.03 +326.09 +0.91 S&P BSE SENSEX 50 11,318.74 +96.37 +0.86 S&P BSE SENSEX Next 50 32,611.36 +101.39 +0.31 S&P BSE 100 11,101.37 +85.88 +0.78 S&P BSE Bharat 22 Index 3,462.36 +12.48 +0.36 -
11:03 AM: F&O Expiry
NEWS ALERT| Zen Technologies board approves issuing 23.5 lakh Convertible Warrants at Rs 76 per warrant to raise to Rs 178 million on a preferential basis to promoters (Ashok Atluri and Kishore Dutt Atluri) and an investor (Navin Sood)
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10:55 AM
Top gainers and losers on S&P BSE Sensex
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10:44 AM F&O Expiry
Sun Pharma up 2% as arm gets relief by US court in a patent infringement caseShares of Sun Pharma climbed as much as 2.41 percent in the morning trade on Thursday after DUSA Pharmaceuticals, an arm of the Mumbai-based pharma major, received relief from a US court in a patent infringement case.Massachusetts-based DUSA has been granted preliminary injunctive relief by a federal district court prohibiting defendants Biofrontera Inc, Biofrontera Bioscience GmbH, Biofrontera Pharma GmbH, and Biofrontera AGF from using its confidential and proprietary trade secret information, the company said in a regulatory filing
The article was originally published here. F&O Expiry