Sensex rallies 271 points to close at 41,386, L&T up 3 per cent

Closing bell

The Sensex finished 271 points or 0.66 per cent firmer at 41,386, while the Nifty finished 73 points or 0.6 per cent higher at 12,179.

The top gainers on the Sensex were L&T, which spiked up 3 per cent, followed by M&M (up 2.31 per cent), SBI (2.26 per cent), Titan (2.25 per cent) and Infosys (1.9 per cent).

On the other hand, Tech Mahindra dropped over 1 per cent, followed by Power Grid, TCS, Bajaj Auto and Reliance (down between 0.4-1 per cent).

Among the BSE sectoral indices, the capital goods and realty indices gained over 2 per cent, while oil and gas, telecom, utilities, industrials and consumer durable gained over 1 per cent.

Virus concerns weigh on European stocks ahead of ECB policy decision

The pan-European STOXX 600 index was flat. File Photo

European shares fell in early trading on Thursday, hit by worries over the spread of a new flu-like virus in China, with investors also bracing for the European Central Bank's first policy decision of the year.

The pan-European STOXX 600 index dropped 0.4 per cent at 0806 GMT as the energy sub-sector slipped 0.8 per cent, tracking a slide in oil prices on concerns that the virus outbreak may dent fuel demand.

Auto stocks hit fresh three-month lows after US President Donald Trump threatened to impose high tariffs on imports of cars from the European Union if the bloc doesn't agree to a trade deal. Click here to read in full the European markets report .

Yen jumps and yuan sags on Chinese virus fears

Against the yen the dollar traded at 108.11 yen, just below last week's high of 108.265, its highest level since August 1.

The Japanese yen strengthened and China's yuan fell to a two-week low on Thursday as investors grew more anxious about the spread of a virus in China, while the euro was calm ahead of the European Central Bank meeting.

Elsewhere, Australia's dollar rose half a per cent after a surprise drop in the country's unemployment rate.

Deaths from the flu-like coronavirus stand at 17. Almost 600 people are infected and China has locked down Wuhan, a city of 11 million people, where the outbreak was believed to have originated at an animal market.

The moves up in the safe-haven yen and down in the yuan were measured, suggesting investors were not yet panicking about the virus. Click here to read in full the forex markets report .

Oil skids as spectre of China virus looms over fuel demand

Oil prices fell to their lowest in seven weeks on Thursday, sliding more than 1 per cent on concern that the spread of a respiratory virus from China may lower fuel demand if it stunts economic growth in an echo of the SARS epidemic nearly 20 years ago.

Brent crude futures were down 87 cents, or 1.4 per cent, to $62.34 a barrel by 0733 GMT, and earlier dropped to the lowest since December 4 after falling 2.1 per cent in the previous session. Click here to read more the global oil markets report .

China stocks lead Asian markets down as virus fears grow

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent. File Photo

Asian shares tumbled on Thursday, led by the biggest slide in Chinese stocks in more than eight months, as investors grew more anxious about the spread of a new flu-like virus in China just as millions prepared to travel for the Lunar New Year.

The likely hit to airline travel from the contagion sent oil futures skidding to seven-week lows, while the International Energy Agency's warning of an oil surplus and a larger-than-expected increase in US crude inventories re-kindled fears of excess supply. Click here to read in full the Asian markets report .

Sensex, Nifty hold firm

The Sensex and Nifty traded firm to hold gains of over 0.50 per cent in the afternoon session on Thursday.

The Sensex was trading at 41,394, up 279 points or 0.68 per cent firmer, while the Nifty moved up 64 points or 0.53 per cent to 12,170.

The top gainers on the Sensex were L&T, up 2.61 per cent, Titan (up 1.95 per cent), Axis Bank (1.86 per cent), SBI (1.83 per cent) and M&M (1.77 per cent).

The laggards were Tech Mahindra, Power Grid, Bajaj Finance, Asian Paints and Reliance, which dropped between 0.30-1 per cent.

AU Small Finance Bank stock zooms nearly 8 per cent

Shares of AU Small Finance Bank on Thursday jumped nearly 8 per cent after the lender reported a doubling of net profit for the quarter ended December 2019. 

The stock zoomed 7.82 per cent to Rs 956 on the BSE. On the NSE, it gained as much as 7.68 per cent to Rs 955.15.

The lender on Wednesday reported doubling of its net profit to Rs 190.19 crore for the quarter ended December 2019, helped by higher income.

The company had clocked a net profit of Rs 95.33 crore during the same period a year ago, AU Small Finance Bank said in a BSE filing.

During the said quarter, its total income rose to Rs 1,272.83 crore from Rs 894.29 crore earlier.

Total expenses rose to Rs 959.98 crore from Rs 715.62 crore in the October-December period of the preceding fiscal. - PTI

Ujjivan SFB rallies 4 per cent on two-fold growth in Q3 profit

Shares of Ujjivan Small Finance Bank on Thursday rallied over 4 per cent gains on the back of a two-fold growth in the lender’s Q3 profit.

On the BSE, the stock was trading 4.48 per cent higher at Rs 53.65. On the NSE, the stock rose by 4.38 per cent to Rs 53.60.

The small finance lender on Wednesday said its profit doubled to Rs 90 crore in October-December 2019, helped by an improvement in operational efficiency, stable margins and cost controls.

In the year-ago period, the lender had reported a profit after tax of Rs 45 crore.

L&T shares gain over 3 per cent on Q3 results

Shares of Larsen & Toubro on Thursday jumped over 3 per cent, a day after the engineering major posted a 15 per cent rise in consolidated net profit for the December 2019 quarter.

On the BSE, the stock touched a high of Rs 1,339.50, up 3.49 per cent over its previous close. On the NSE, the scrip rose 3.52 per cent to trade at Rs 1,339.85.

The company on Wednesday reported a 15 per cent rise in its consolidated net profit at Rs 2,560.32 crore for the quarter to December 2019, helped by higher revenues from international contracts.

The company had posted a consolidated profit after tax of Rs 2,218.68 crore in the same period a year ago.

Its consolidated total income during October-December increased to Rs 36,717.60 crore, against Rs 34,823.08 crore in Q3 FY19. - PTI

Oil slides 2 per cent as glut forecast

Oil prices fell more than 2 per cent on Wednesday as a market surplus forecast by the International Energy Agency (IEA) and demand worries amid the outbreak of a virus in China outweighed concern over disruptions to Libya's crude output.

Brent crude ended the session down $1.38, or 2.1 per cent, at $63.21 while West Texas Intermediate fell $1.64, or 2.8 per cent, to settle at $56.74.

The head of the IEA, Fatih Birol, said he expects the market to be in surplus by 1 million barrels per day (bpd) in the first half of this year. Click here to read in full the global oil markets report .

Yen firm over China virus concern; Australian dollar jumps on jobs data

Against the yen the dollar traded at 108.11 yen, just below last week's high of 108.265, its highest level since August 1.

The safe-haven Japanese yen was firm and the Chinese yuan fragile on Thursday as traders kept a wary eye on the spread of a virus in China, while the ailing Australian dollar jumped after a surprise drop in unemployment.

Deaths from the flu-like coronavirus, rose to 17 on Wednesday. A total of 571 cases have now been confirmed and Chinese state media reported overnight that transport to and from the city of Wuhan in central China, where the outbreak originated, is to be shut from 0200 GMT. Click here to read in full the global forex markets report .

Benchmark indices hold firm

The Sensex and Nifty held firm in early trading on Thursday. The benchmark indices extended their gains to 0.50 per cent each.

The Sensex was at 41,330, up 214 points or 0.52 per cent firmer, while the Nifty quoted at 12,163, a gain of 56 points or 0.47 per cent.

The top gainers on the Sensex were Axis Bank, which rose nearly 3 per cent, L&T (2.4 per cent), Infosys, ONGC and NTPC (which gained between 1.20-1.60 per cent).

The laggards were Tech Mahindra, Hindustan Unilever, Asian Paints, HDFC Bank and IndusInd Bank (falling between 0.10-0.60 per cent).

According to an agency report, the Sensex rose over 250 points on Thursday tracking gains in L&T, Axis Bank and Infosys, despite a massive sell-off in global equities.

After market hours on Wednesday, L&T reported a 15 per cent rise in its consolidated net profit at Rs 2,560.32 crore for quarter to December 2019.

Likewise, Axis Bank posted a 4.5 per cent year-on-year jump in net profit at Rs 1,757 crore for the third quarter ended December 2019 amid improving asset quality.

Shares of Infosys jumped 1.44 per cent after the government said it was working with the managed service provider for the goods and services tax (GST) regime, to improve the performance of GSTN filing portal on a permanent basis.

According to the report, despite a sell-off in other Asian equities amid fears of contagion after a deadly new virus emerged from China, stock-specific action kept the domestic benchmarks buoyed.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading significantly lower. Brent crude oil futures dropped 1.33 per cent to $62.37 per barrel.

Meanwhile, the rupee depreciated marginally to 71.21 against the US dollar in morning session.

In the previous session, Sensex settled 208.43 points, or 0.50 per cent, lower at 41,115.38; while the Nifty closed 62.95 points, or 0.52 per cent, lower at 12,106.90.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 176.43 crore, while domestic institutional investors offloaded shares worth Rs 326.22 crore on Wednesday, data available with stock exchanges showed (with inputs from PTI).

Daily rupee call: Stay on the sidelines as the rupee is range-bound

The rupee (INR) seems to have found good support at 71.24 against the dollar (USD) as that level has prevented the rupee from depreciating below it for second consecutive day. Against Tuesday’s close of 71.21, the local currency closed marginally higher at 71.19 yesterday. The one-year forward spread of the USDINR currency pair has slipped below 300 points, indicating softening demand for the dollar in the forward market. This might result in rupee strengthening. Click here to read in full the Daily Rupee Call.

Rupee slips 3 paise against dollar in early trade

The rupee depreciated by 3 paise to 71.22 against the US dollar in early trade on Thursday amid rising demand for the greenback vis-a-vis other currencies overseas, even as crude oil prices eased. Besides, foreign fund outflows also weighed on the local unit, forex dealers said. Click here to read in full the rupee report .

Asian shares wilt, oil tumbles as China virus spreads

Asian shares and United States (US) stocks fell on Thursday as investors remained anxious about the spread of a new flu-like virus in China just as millions prepared to travel for the Lunar New Year.

Oil futures tumbled to seven-week lows as the contagion was expected to hit airline travel, while the International Energy Agency's warning of an oil surplus and a larger-than-expected increase in US crude inventories re-kindled fears of excess supply. Click here to read in full the Asian markets report .

What to Watch: GHCL board meets for results, buyback

The board of GHCL will meet on Thursday for quarterly results and also to consider and evaluate a proposal for buyback of equity shares of the company and matters incidental thereto. Shareholders will closely monitor the issue size, number of shares to be bought back, price and mode of buyback (whether from open market or through tender route) and promoters’ intention (whether to participate or not). The record date will be a crucial factor if it’s through the tender route.

HDFC Life, Canara Bank, PVR, Biocon results

Thursday will see about 40 firms declaring their Q3 FY20 results. These include Apar Ind, Automotive Samplings, Biocon, Canara Bank, Cholamandalam Inv, CDSL, DB Corp, Dishman Carbogen, EIH Associated, GMM Pfaulder, HDFC Life, Indoco Remedies, Indiabulls Ventures, JM Financial, Karuturi Global (Septembe qtr), Kokuyo Camlin, Nelco, Pioneer Distilleries, Oriental Bank, PNB Housing, PVR, Radico Khaitan, Rane Brake, Reliance Nippon, Zee Media and Zensar Tech.

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened Thursday's session in the green.

The Sensex was at 41,185, up 69 points or 0.17 per cent firmer, while the Nifty quoted at 12,119, up 12 points or 0.1 per cent higher.

Day Trading Guide for Thursday, January 23, 2019

₹1241 • HDFC Bank

₹769 • Infosys

₹238 • ITC

₹116 • ONGC

₹1535 • Reliance Ind.

₹315 • SBI

₹2209 • TCS

12149 • Nifty 50 Futures

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Today's Pick: ICICI Prudential Life Insurance Co (₹506.5): Buy

Traders can buy the stock of ICICI Prudential Life Insurance Company as it seems to have resumed its uptrend after a correction.

After declining in early January 2019, the stock has been in a strong uptrend. It appreciated from ₹277 levels to ₹537.3 — its lifetime high. What followed was a price correction that resulted in stock depreciating to ₹471. The stock has bounced from that level and closed above the important level of ₹500 on Tuesday. Thus, the price has formed higher high on the daily chart, indicating renewed bullish momentum. Also, the stock has closed above both 21- and 50-DMAs. Click here to read in full the Today's Pick on ICICI Prudential Life Insurance .

COMMENT NOW