CNBC-TV18 Market Highlights: Domestic stock markets settled on a positive note on Tuesday, as oil prices eased due to a lack of further escalation in Middle East tensions. The S&P BSE Sensex index ended 192.84 points or 0.47 percent higher at 40,869.47, while the broader NSE Nifty benchmark closed 67.25 points or 0.56 percent higher at 12,060.30. Gains in realty, banking and metal stocks pushed the domestic markets higher. Here are the main highlights and updates from the stock markets today:
Jan 7, 2020
Thank you readers! Here are the main highlights from the markets at close
Thank you readers and before we sign out of this blog, here are the main highlights from today’s session. Do log in tomorrow as well for our rolling day coverage of live markets.
-Market closes in the green but off highs
-Sensex slips 361 points from highs to close with a gain of 193 points
-Nifty ends 60 points higher after a 147-point trading range
-Nifty Bank falls 452 points, Midcap Index 138 points from highs
-Except PSU Bank all sectoral indices close with gains; Realty top gainer
-Infosys under pressure ahead of result on January 10
-ONGC and IOC slip on reports of cos being asked to take part in BPCL share sale
-Zee Entertainment up over 2 percent after CLSA has co as top media pick
-Reliance gains nearly 2 percent to close the session above 50-DMA
-NMDC closes 1 percent lower amid volatility on Donimalai uncertainty
Jan 7, 2020
Closing Bell: Sensex, Nifty end with gains led by HDFC twins, Reliance Industries
Domestic stock markets settled on a positive note on Tuesday, as oil prices eased due to a lack of further escalation in Middle East tensions. The S&P BSE Sensex index ended 192.84 points or 0.47 percent higher at 40,869.47, while the broader NSE Nifty benchmark closed 67.25 points or 0.56 percent higher at 12,060.30. Gains in realty, banking and metal stocks pushed the domestic markets higher. READ MORE
Jan 7, 2020
Sensex heatmap at close: UltraTech Cement, RIL top gainers, Infosys top loser
Why farm loan waiver might be good politics but is surely bad economics
The Maharashtra government on December 21 announced a loan waiver of up to Rs 2 lakh for farmers with a cut off date of September 30, 2019, and providing relief to non-defaulting farmers who have a loan above Rs 2 lakh.
The cost of this farm loan waiver would be at least Rs 45,000 crore, according to analysts. Maharashtra has a large share of agriculture credit in the country and it also has the largest contribution to agriculture Non-Performing Assets (NPAs) in the country as per RBI data.
Around 15 percent of overall agriculture NPLs in the country are contributed by Maharashtra.
Analysts believe farm loan waiver is the moral hazard and it undermines credit discipline among farm loan borrowers.
On a journey towards IPO for Biocon Biologics, says Kiran Mazumdar Shaw
Kiran Mazumdar Shaw, founder of Biocon Limited, on Tuesday, said that Biocon Biologics, a subsidiary of the company, is on a journey towards its IPO. "We are on a journey to an IPO for Biocon Biologics business," she said.
According to her, Biocon Biologics is set to achieve $1 billion in revenue by FY22 as “the opportunities are very well marked out".
Private equity fund True North has picked up a 2.44 percent stake in Biocon Biologics for more than Rs 530 crore. Mazumdar Shaw said that the first step is to get a benchmark equity valuation ahead of possible IPO for biologics arm.
“We might raise little more private equity prior to IPO. This basically gives an idea of where we believe we can unlock the value in terms of Biocon Biologics in the next few years,” she said in an interview with CNBC-TV18. READ MORE
Jan 7, 2020
Broker Forum may meet SEBI officials tomorrow on margin circular as the circular forces brokers to insist TMs to deposit funds, securities with them
The share price of Panama Petrochem rallied over 14 percent intraday on Tuesday after the company's promoter shareholding increased in December.
At 2:30 pm, the stock price was trading 7.93 percent higher to Rs 66.70 per share on the NSE while on an intraday basis, the share price jumped 14.51 percent at Rs 70.80.
In its BSE filing, it said, "Panama Petro's promoter shareholding increased to 72.82 percent in December as compared to 70.49 percent in September last year."
Jan 7, 2020
GM Breweries Q3 Earnings: Net profit and revenue declines 16.3% YoY and 3.9% YoY respectively
Liquor maker GM Breweries has reported a 16.3 percent year-on-year (YoY) decline in third-quarter (October-December) net profit, dented by lower revenue and operating income.
Profit after tax fell to Rs 14 crore in the quarter ended December 2019, compared to Rs 16.7 crore in the same period last year.
Revenue from operations during the quarter declined 3.9 percent to Rs 119.7 crore year-on-year, company said in its BSE filing.
At the operating level, earnings before interest, tax, depreciation and amortization (EBITDA) dropped 19.8 percent year-on-year to Rs 19.9 crore and margin contracted 330 bps YoY to 16.6 percent in the quarter ended December 2019.
Muthoot finance company MD attacked in Kerala, suffers head injury
The Managing Director of Muthoot Finance company was injured after miscreants allegedly pelted his vehicle with stones on Tuesday morning. George Alexander Muthoot, who suffered head injury has been admitted to a private hospital, police said.
A section of employees have been agitating against the Muthoot management over dismissal of 160 staff from the company's 43 branches across the state in December.
The protest is being held under the aegis of the Centre of Indian Trade Unions (CITU).
The Muthoot management alleged that "CITU goons" were behind the attack that occurred at around 9 am in front of IG office here. However, the CITU rejected the allegations, saying the trade Union outfit has no role in the incident.
"We don't believe in such type of violent mode of agitation", CITU leader Ananthalavattom Anandan told media. An official of the Confederation of Indian Industries Kerala chapter condemned the incident, saying "it is a matter of great concern".
Jan 7, 2020
Zee Entertainment will bring operating improvements in 2020, says CLSA
Global brokerage firm CLSA retained 'buy' rating on the entertainment company, though it slashed the price target to Rs 360 from Rs 390 apiece.
"2019 was the end of the pledging crisis and 2020 will bring operating improvements," said the brokerage house which feels Zee is well placed to continue outperforming industry growth.
CLSA said 2020's key focus for the company will be on cash generation. "We see a turn in the company's cash flows from Q4 and forecasts 11 percent earnings CAGR over FY19-22."
At 12:40 pm, the stock price was trading 1.99 percent to Rs 266.70 per share on the NSE while on an intraday basis, the shares surged 3.76 percent at Rs 271.35.
Jan 7, 2020
RBI allows banks to trade in forex outside market hours
The Reserve Bank of India on Monday permitted select banks to conduct foreign exchange trading beyond markets hours. The RBI allowed category-I banks to offer foreign exchange prices to users at all times, out of their Indian books, either by a domestic sales team or through their overseas branches.
Currently, banks are allowed to offer forex services between 9 AM and 5 PM. The order will allow forex trading round the clock.
Dealers hailed the move as a step in the right direction to help traders hedge their bets on the domestic front.
"Transactions beyond onshore market hours. Transactions with person resident outside India, through their foreign branches and subsidiaries, may also be undertaken beyond onshore market hours," the RBI said in a release.
The central bank said the decision came as it accepted the recommendation of the task force on the offshore rupee market.
Jan 7, 2020
Valli Arunachalam, who recently asked for a board seat at the Murugappa Group, speaks to us about the entire rift against family patriarch MV Subbiah. Here's what she has to say pic.twitter.com/0yFzvqtfBx
Here's a quick recap of the Indian market performance so far
1. Indian equity benchmark indices saw a positive opening today after there was no new escalation between the US and the Middle East.
2. At 12 pm, the Sensex was up 262.03 points or 0.64 percent at 40,935.32 while the Nifty50 index was trading at 12,067.45, up 74.90 points or 0.62 percent. Broader indices especially Nifty Smallcap100 index rose the highest, by 1.03 percent while Nifty Midcap100 index was up 0.61 percent.
3. Vedanta, UPL, Tata Steel, Zee Entertainment and HDFC Bank were the Nifty50 top gainers while Bharti Infratel, Tata Motors, Hero MotoCorp, Bharti Airtel and BPCl were the top losers.
4. All Nifty50 sectoral indices trading in the green, however, Nifty Realty delivered the highest gains amongst all, a surge of 1.21 percent followed by Nifty Metal and Nifty Media.
Jan 7, 2020
Air India Divestment: Second meeting of Home Minister Amit Shah-headed Group of Ministers (GoM) is likely to take place today.
The meeting with Home Minister Amit Shah over Air India divestment will mostly be on the lines of Preliminary Information Memorandum (PIM) on the sale process, said the sources.
The Air India Specific Alternative Mechanism (AISAM) or GoM has already approved re-initiation of the process for the government's 100 percent stake sale in Air India along with Air India Express and the carrier's stake in joint venture AISATS.
The last GoM meeting took place in September last year. Apart from Shah, it was also attended by Finance Minister Nirmala Sitharaman, Commerce and Railway Minister Piyush Goyal and Civil Aviation Minister Hardeep Singh Puri.
Jan 7, 2020
Jet Airways rises 5% after Synergy Group submits EoI, hits upper circuit for fifth day
Shares of Jet Airways surged nearly 5 percent on Tuesday, a day after South America-based Synergy Group submitted an Expression of Interest (EoI) to acquire the debt-laden carrier.
On the Bombay Stock Exchange (BSE), Jet Airways shares rose as much as 4.87 percent to an intraday high of Rs 37.65 apiece. On the National Stock Exchange (NSE), Jet Airways shares advanced to Rs 37 apiece intraday, up 4.96 percent.
At 9:51 am, Jet Airways shares traded 4.87 percent higher at 37.65 apiece on the BSE. The benchmark Sensex index was 1.21 percent up at that time.
The airline’s shares have remained locked to the upper circuit filter for five sessions in a row in hopes of a rescue. On Monday, shares of Jet Airways closed nearly 5 percent higher at Rs 35.90 on the BSE.
Synergy Group emerged as the sole contender for the airline in the previous round of bidding. However, it did not submit a binding bid and sought more time.
Besides Synergy Group, banks are hopeful that two other suitors may also come forward — a Dubai-based fund and the Hinduja Group.
Jet Airways, once country's biggest private airline, stopped flying in April 2019 after running out of cash, leaving thousands without jobs.
Jan 7, 2020
Government plans to cut spending to curb deficit; may hurt growth
India's government is likely to cut spending for the current fiscal year by as much as 2 trillion Indian rupees ($27.82 billion) as it faces one of the biggest tax shortfalls in recent years, three government sources said.
Asia’s third-largest economy, which is growing at its slowest pace in over six years because of lack of private investment, could be hurt further if the government cuts spending.
But with a revenue shortfall of about 2.5 trillion rupees, the government has little choice to keep its deficit within “acceptable limits”, the first official, who did not want to be named, told Reuters.
RITES' CMD Rajeev Mehrotra speaks to us about the recent Bangladesh project, adds that the co should be able to maintain growth rate momentum going forward. Here's more#OnCNBCTV18pic.twitter.com/wXgmUfBlSg
Here’s how the Indian markets performed a month before Union Budget in the past 5 years
The Union Budget in February is the biggest and most awaited event in the Indian financial calendar. So it is worth checking how the equity benchmark indices behave in the run-up to the budget.
The highest returns the Indian market indices delivered a month before the Union Budget in the past five years was in 2015. The S&P BSE Sensex in January 2015 rallied 6.17 percent while the Nifty50 index jumped 6.47 percent.
The Indian rupee opened higher at 71.76 against the US dollar. The home currency had closed at 71.93 against the greenback.
Jan 7, 2020
These are market expert Ashwani Gujral’s top buy and sell ideas
Market guru Ashwani Gujral of ashwanigujral.com gave his top stock picks for Tuesday's trade in an interview with CNBC-TV18. One of India’s most famous market analysts, Gujaral has been a full time trader of stocks and derivatives for more than 20 years and runs a technical analysis plus trading chat room.
US-Iran tensions: What does it mean for crude oil prices in India?
Global equity markets are roiled, currencies are in flux and oil is on the boil. The United States killing Iran's most powerful military commander, Qassem Soleimani, has put the region and investors on the edge. Markets in India felt the heat on Monday as crude oil prices hit their 14-month high.
Can the already on-the-edge tensions escalate into a full-blown war? The opinion is divided among geopolitical experts. Eurasia Group, a renowned think tank, has put the chance of a limited or major military action escalation at 40 percent. Read here for more
Jan 7, 2020
CNBC-TV18's top stocks to watch out for on January 7
The Indian market is likely to open higher on Tuesday on short-covering after a steep fall in the previous session. Investors will keep an eye on the global geopolitical tensions.
At 7 am, the SGX Nifty was trading 71.50 points or 0.59 percent higher at 12,120.00, indicating a positive start for the Sensex and Nifty50.
Among the stocks in the news today, HDFC Bank's advances in Q3FY20 grew 20 percent YoY while M&M increased its production in December by 22.5 percent YoY.
Here are the top stock to watch out for: HDFC Bank, M&M, VST Tillers amongst others