Stock Market HIGHLIGHTS: Sensex ends 563 pts higher, Nifty50 reclaims 18,050; Bank of India drops 4% after results
Stock Market HIGHLIGHTS: Indian equity benchmarks Sensex and Nifty50 held on to the green led by financial, IT and oil & gas shares. On Monday, the government reduced the windfall tax on crude oil.
Stock Market HIGHLIGHTS: Indian equity benchmarks Sensex and Nifty50 jumped on Tuesday amid gains in by IT, FMCG, oil & gas and pivate sector financial shares. Heavyweights Reliance, the HDFC twins, Larsen & Toubro and Hindustan Unilever were at the forefront of the broad-based upmove on Dalal Street.
Here are 10 key things to know about the January 17 session:
1) Both headline indices finished the session 0.9 per cent higher. The 30-scrip index ended with a gain of 562.8 points at 60,655.7, having gyrated in a range of more than 600 points during the session. The Nifty50 settled at 18,053.3, up 158.5 points from its previous close, after moving largely within the 17,850-18,100 band in intraday trade.
2) Thirty seven stocks in the Nifty50 basket finished higher. Larsen & Toubro, Hindustan Unilever, HDFC, HCL Tech, TCS, Reliance, HDFC Bank, Britannia and UltraTech -- rising around 1-4 per cent for the day -- were the top gainers. On the other hand, SBI, Bajaj Finserv, IndusInd, Wipro, Tata Steel, Bajaj Finance and JSW Steel -- finishing between 0.4 per cent and 1.6 per cent higher -- were the top laggards.
3) Reliance, HDFC Bank and Larsen & Toubro together contributed more than 250 points to the gain in Sensex.
4) The Nifty FMCG was the top gainer among NSE's sectoral indices, boosted by HUL, ITC, Britannia and Nestle.
5) The Nifty PSU Bank -- whose 12 constituents include SBI, Bank of Baroda, Bank of India, PNB and Canara Bank -- dropped 1.8 per cent.
6) Overall market breadth was neutral, as 1,713 stocks rose and 1,784 fell at the close on BSE.
7) Oil & gas shares were in focus a day after the government reduced the windfall tax on crude oil.
8) LIC shares closed 0.6 per cent lower at Rs 705.4 apiece on BSE, after JPMorgan downgraded the PSU life insurer to 'neutral' from 'overweight' and reduced its target price by Rs 60 to Rs 780.
9) European markets began the day in the red, after China posted its weakest annual economic growth in nearly half a century, stoking investors' fears of an economic slowdown. The pan-European Stoxx 600 was down 0.3 per cent at the last count, retreating from a ninemonth high clocked in the previous session.
10) MSCI's broadest index of Asia Pacific shares outside Japan was down 0.4 per cent. Japan's Nikkei 225 surged 1.2 per cent. S&P 500 futures were down 0.4 per cent, suggesting a weak start ahead on Wall Street as the market was set to resume trade later in the day after a long weekend.
Catch highlights of the January 17 session, market commentary, expert views, investment ideas, and much more, with Zeebiz.com:
Latest Updates
IT, blue-chip bank results encouraging: Geojit Financial Services' Vinod Nair
Vinod Nair, Head of Research at Geojit Financial Services, is of the view the market is attempting to recover YTD losses caused in anticipation of soft Q3 results as well as the Union Budget.
"We started the third quarter results on a shaky note, but the latest set of financial announcements from IT and banking blue chips are encouraging. Heavyweights are also pushing the counter, including the fact of the fall in windfall tax. Given the positive undercurrents, the trend should continue in the short term. However, a lot will depend on the second line of Q3 results, the Budget outcome and the Fed policy statement," he says.
How Sensex moved in today's session
Closing Bell | Sensex up 563 pts at 60,656, Nifty50 reclaims 18,050
The Sensex is up 562.8 points at 60,655.7 at the close. The Nifty50 is at 18,053.3, up 158.5 points from its previous close.
New age companies need to be more realistic, not convinced by cash burning models: Enoch Ventures' Vijay Chopra
Vijay Chopra of Enoch Ventures finds Zomato better than Nykaa in the new-age basket. "I don't understand how these companies decide valuations... Tech companies are known to get higher valuations but such levels are not justifiable (for new-age companies)," he says in an interaction with Zee Business Managing Editor Anil Singhvi.
"I am not convinced by their cash burning models... New-age companies need to be more realistic," he says.
Reliance, HDFC twins, L&T, HUL boost headline indices
The five stocks are contributing more than 300 points to the rise in the 30-scrip index.
Here's a look at the top movers in the Nifty50 basket:
Bank of India shares fall after PSU lender's Q3 results
Bank of India reports a net profit of Rs 1,151 crore for the October-December period, marking an increase of 12 per cent compared with the corresponding period a year ago. Its net interest income -- or the difference between interest earned and interest paid -- grows 10.1 per cent on a year-on-year basis to Rs 5,595 crore, according to a regulatory filing.
The state-run bank reports an operating margin of 25.79 per cent, down 34 basis points compared with the previous three months.
The Bank of India stock gives in to the red zone after the earnings announcement.
IIFL Finance, Minda Corp, Sterlite Tech, Brigade top gainers in BSE 500 universe
Around 290 stocks are trading in the green in the broadest index of the bourse. On the other hand, Bank of India, Nykaa, Zomato, PNB Housing Finance and Paytm are among the top laggards.
LIC shares face selling pressure. Here's what's ailing the state-run life insurance giant
JPMorgan has downgraded LIC to 'neutral' from 'overweight' and lowered its its target for LIC to Rs 780 from Rs 840. Yet, its latest target implies upside potential of almost 10 per cent in LIC shares.
The LIC stock has lost 19 per cent of its value in the past one year. (Read more on LIC shares)
Good opportunity in banking stocks, Buy PFC: Sanjiv Bhasin
Sanjiv Bhasin of IIFL Securities suggests investors to buy quality stocks ahead of the presentation of the Union Budget in Parliament on February 1. "Global growth is back and fears about recession have subsided. Europe has bounced back and Asia is looking fine so this is the good time to earn," says Bhasin, who expects the Nifty50 to touch 18,500 before the Budget.
He sees weakness in banking stocks as a big opportunity.
He suggests going long on PFC at Rs 150.2 for a target of Rs 158-159 with a stop loss at Rs 147.
"PFC is a huge outperformer and its internal rate of return (IRR) will be higher," he says.
LIC shares edge lower amid choppy trade after JPMorgan downgrades stock to 'neutral', reduced target price
LIC shares edge lower to Rs 709 apiece on BSE, having moved within a narrow range around the flatline in intraday trade so far, after JPMorgan revisesits rating for the stock to 'neutral' from 'overweight' and reduced its target price by Rs 60 to Rs 780.
Hindustan Unilever, HCL Tech, Larsen & Toubro, Tata Motors top gainers in Sensex basket
NTPC, the HDFC twins, UltraTech and Infosys are also among the top gainers in the 30-scrip pack. On the other hand, Bajaj Finance, Sun Pharma and Mahindra & Mahindra are the worst hit among the seven laggards.
Financial, IT, oil & gas stocks aid recovery on Dalal Street
Both headline indices gain as much as 0.4 per cent in the first few minutes of trade after a flat start. The Sensex rises 262.8 points to touch 60,355.8 at the strongest level of the day so far, and the Nifty50 climbs to as high as 17,962.2, up 67.4 points from its previous close.
Here's how the 30-scrip index is moving 20 minutes into the opening bell:
Traders' Diary | Buy, sell or hold strategy on ONGC, Chennai Petro, IndiGo, Bharti Airtel, 16 other stocks today
In this edition of Traders' Diary, Zee Business analysts Varun Dubey and Kushal Gupta share exclusive research on 20 stocks that investors and traders can track today. (Check out the complete list)
Oil stocks to be in focus today as government cuts windfall tax
The government has cut windfall tax on crude oil and exports of aviation turbine fuel (ATF) and diesel. It reduced the tax on crude to Rs 1,900 per tonne from Rs 2,100 per tonne, effective Tuesday.
Also, the export tax on aviation turbine fuel -- or jet fuel -- has been reduced to Rs 3.5 per litre from Rs 4.5 per litre, and the export tax on diesel lowered to Rs 5 per litre from Rs 6.5 per litre. (Read more on windfall tax cut)
Editor's Take | Anil Singhvi sees strong support for Nifty50 at 17,700-17,800
Zee Business Managing Editor Anil Singhvi says the market's reaction to the ongoing results season is not visible yet. He expects strong support for the Nifty50 in the 17,700-17,800 band and resistance to come in at 18,150-18,250 levels. For the Nifty Bank, he sees a strong base in the 41,500-41,700 range.
Insurance results will be in focus today, he points out.
ICICI General Insurance and ICICI Prudential Live Insurance will report their financial results later in the day.
Analysts await more of financial results from India Inc for domestic cues
As many as 35 companies are set to report their quarterly earnings on Tuesday, including Bank of India, ICICI General Insurance, ICICI Prudential, Tata Metaliks, Tata Investment and Delta Corp.
The ongoing earnings season has not surprised the market negatively so far, AK Prabhakar, Head of Research at IDBI Capital Markets, tells Zeebiz.com.
S&P 500 futures down 0.3% as Wall Street set to resume trade after long weekend
On Friday, the S&P 500 rose 0.4 per cent to register its higher close in a month, boosted by banking stocks including JPMorgan Chase amid optimism on earnings. The Dow Jones rose 0.3 per cent and the tech stocks-heavy Nasdaq Composite 0.7 per cent.
Here are some highlights:
- JPMorgan, Wells Fargo shares jumped
- Tesla fell after EV price cuts
Asian shares a mixed bag
Equities elsewhere in Asia are seeing mixed moves this morning, with MSCI's broadest index of Asia Pacific shares outside Japan quoting 0.7 per cent lower.
- Japan's Nikkei 225: up 1.2 per cent
- China's Shanghai Composite: down 0.2 per cent
- Hong Kong's Hang Seng: down 0.7 per cent
- South Korea's KOSPI: down 0.5 per cent
- Singapore's Straits Times: flat
Sensex retreated 494 pts from day's high on Monday, Nifty50 slipped below 17,900 dragged by financial shares
The Sensex finished a volatile session on Monday with a loss of 168.2 points or 0.3 per cent at 60,093, amid weakness in financial and oil & gas shares, though strength in IT shares -- with stocks of the country's five largest IT companies being the top five Nifty50 gainers -- lent support. The 30-scrip index gyrated in a range of more than 600 points during the session, between 59,963.8 and 60,586.8.The Nifty50 settled at 17,894.9, down 61.8 points or 0.3 per cent from its previous close, having moved broadly within the 17,850-18,050 zone in intraday trade. (Read more on the January 16 session on Dalal Street)Good morning! Welcome to Zeebiz.com's live coverage on the January 17 session on Dalal Street
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