Markets Live: FinMin statement buoys D-Street; Sensex soars 551 points to 34,442

Closing bell

The S&P BSE Sensex rallied 550.92 points or 1.63 per cent to 34,442.05 and the Nifty50 surged 163.40 points or 1.85 per cent to reclaim 10,350 mark as the Finance Ministry made it clear that the autonomy of the central bank, within the framework of the RBI Act, is an essential and accepted governance requirement.

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Top five Sensex gainers were HDFC, IndusInd Bank, Infosys, Axis Bank and YES Bank, while the major losers were Coal India, Tata Steel, Maruti, Adani Ports and Kotak Bank.

Among BSE sectoral indices, IT and TECk were the star-performers followed by consumer durables and healthcare. Only metal index succumbed to selling pressure.

 

“The markets have come through with what would be referred to in technical parlance as a follow through day, in a classic fashion,” said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.

“Fundamentally, the market shrugged off worries about tensions between the Reserve Bank of India (RBI) and government that led to a sell-off in the morning,” he pointed out.

With relief rallies across emerging markets and the US, it appears that the market is making a strong attempt at a trend reversal, market analysts said.

Global markets

 

Euro zone stock index was up 1.5 per cent in early trading, with the pan-European STOXX 600 up 1.4 per cent and Germany's DAX up 1.3 per cent. Britain's FTSE 100 increased 1.4 per cent. Read more

Bullion rates

FILE PHOTO: A salesperson attends to a customer (not pictured) inside a jewellery showroom, during Akshaya Tritiya, a major gold-buying festival, in Mumbai, India April 28, 2017. REUTERS/Shailesh Andrade/File Photo

 

In the Delhi bullion market, gold of 99.99 and 99.5 per cent purity surged by Rs 30 each to Rs 32,650 and Rs 32,500 per 10 gram, respectively. This is the highest level since November 29, 2012 when the precious metal had closed at Rs 32,940 per ten gram. Read more

Gold hits over 2-week low

 

Gold prices fell to a more than two-week low as equities gained and the dollar touched multi-month highs after upbeat economic data indicated a robust US economy. Spot gold was 0.5 per cent lower at $1,216.85 an ounce at 0750 GMT, having touched its lowest since October 12 at $1,215.35 earlier in the session. Read more

Dabur India net up 4%

Dabur India. Credits- Screengrab from @DaburIndia twitter account.

 

Dabur India has reported a 4.10 per cent increase in consolidated net profit at Rs 377.55 crore for the second quarter ended September, 2018 driven by growth of the core business in the domestic market. Read more

The Sensex rallied 557.94 points or 1.65 per cent to 34,449.07 and the Nifty jumped 182.15 points or 1.79 per cent to 10,380.55 as the Finance Ministry made it clear that the autonomy of the central bank, within the framework of the RBI Act, is an essential and accepted governance requirement.

Top five Sensex gainers were HDFC, IndusInd Bank, Infosys, Axis Bank and YES Bank, while the major losers were Coal India, Tata Steel, Maruti, Adani Ports, and PowerGrid.

 

Bank of Baroda Q2 analysis

 

Bank of Baroda, which has been weighed down by the Centre’s decision to amalgamate the bank with Dena Bank and Vijaya Bank, has seen some respite after its September quarter results. The stock is up nearly 2 per cent today after the bank announced its September quarter results late Tuesday. Read more

HCL Tech hits 2-week high

 

Shares of HCL Technologies today hit a 2-week high, and chart suggested more upside. The stock gained as much as 3 per cent to Rs 1,034.95, its highest since October 17. Read more

The S&P BSE Sensex surged 462.26 points or 1.36 per cent to 34,353.39 and the Nifty50 jumped 147.6 points or 1.45 per cent to 10,346 as the Finance Ministry made it clear that the autonomy of the central bank, within the framework of the RBI Act, is an essential and accepted governance requirement.

Among NSE sectoral indices, IT gained 2.56 per cent, Fin Service 2.03 per cent, Bank 2.01 per cent and PVT Bank 1.43 per cent.

 

Top five Nifty gainers were Indiabulls Housing Finance, Tech Mahindra, HDFC, UPL and IndusInd Bank, while the major losers were Coal India, Tata Steel, Dr Reddy's, NTPC and Hindalco.

 

 

ICICI Prudential medium term fund

ICICI Prudential Mutual Fund through this tie-up aims to increase its footprint, especially in smaller towns and cities.

 

ICICI Prudential Medium Term Bond Fund (erstwhile ICICI Prudential Corporate Bond Fund), invests 50-60 per cent in AA and below-rated bonds. The relatively higher exposure to riskier, low-rated bonds has helped the fund rake in above-category returns. Over three- and five-year periods, the fund has delivered 7-8.5 per cent annual returns. The fund’s maximum exposure to a single bond is 3-4 per cent, mitigating credit risk. Read more

Dalmia Bharat net profit down 89%

 

Dalmia Bharat has reported a decline of 88.88 per cent in its consolidated net profit to ₹2 crore for the second quarter ended September 2018 due to foreign currency fluctuation cost. The company shares were trading down 2.27 per cent at Rs 2,065 on the BSE. Read more

Nifty 50 November Futures (10,263)

 

Nifty November futures contract began the session on a flat note and started to decline witnessing selling pressure. After recording a intra-day low of 10,111 the contract took support and bounded up strongly, recovering the intra-day losses. Read more

The S&P BSE Sensex surged 317.05 points or 0.94 per cent at 34,208.18 and the Nifty50 jumped 109.65 points or 1.08 per cent at 10,308.05 after the Finance Ministry made it clear that the autonomy of the central bank, within the framework of the RBI Act, is an essential and accepted governance requirement.

Top five Sensex gainers were HDFC, Infosys, IndusInd Bank, Sun Pharma and State Bank of India, while the major losers were Tata Steel, Coal India,  Maruti, Bharti Airtel and NTPC.

Among BSE sectoral indices, IT index gained 3.55 per cent, TECk 2.95 per cent, consumer durables 1.64 per cent and healthcare 1.56 per cent. On the other hand, metal index fell 2.55 per cent, power 0.13 per cent and auto 0.09 per cent.

Rupee recovers on FinMin statement

 

The rupee wiped off its losses after the Finance Ministry made it clear that the autonomy of the central bank, within the framework of the RBI Act, is an essential and accepted governance requirement. Read more

M&As in energy sector

 

The government has initiated the process for two more merger and acquisitions in the energy sector. This will be the next round of action for the government after the high-profile merger of Hindustan Petroleum with ONGC last year. Read more

China manufacturing PMI

October official factory PMI 50.2. File Photo

 

China's manufacturing sector barely expanded in October and missed expectations, as both domestic and external demand ebbed, in a sign of deepening cracks in the economy from an intensifying trade war with the United States. Read more

FinMin statement on Govt-RBI rift

 

Breaking silence on the current tussle between the North Block and the Mint Street, the Finance Ministry on Wednesday made it clear that the autonomy of the central bank, within the framework of the RBI Act, is an essential and accepted governance requirement. Read more

Cummins India jumps to over 3-year high

 

Cummins India jumped the most in over 3 years on upbeat Q2 results. The engine maker shares surged as much as 14.3 per cent to Rs 769.40, their biggest intraday percentage gain since August 6, 2015. Read more

IDFC-NIIF II deal

 

IDFC Ltd will sell a controlling interest in IDFC Infrastructure Finance Ltd to National Investment and Infrastructure Fund II for an undisclosed amount. The acquisition will conclude on the receipt of the requisite regulatory approvals including from the Reserve Bank of India. Read more

Post-noon trade

The Sensex was trading higher by 93.95 points or 0.28 per cent at 33,985.08 and the Nifty up 41.55 points or 0.41 per cent at 10,239.95 on heavy buying in IT, TECk and healthcare stocks. However, metal, power, PSU and auto stocks succumbed to selling pressure.

The government will soon issue a statement to address the growing differences between the finance ministry and the country’s central bank, Economic Affairs Secretary Subhash Chandra Garg has said.

Earlier in the day, television channels reported that  the Reserve Bank of India Governor Urjit Patel may consider resigning from his post given a breakdown in relations with the government, sparking a sell-off in the rupee and government bonds.

“The market saw some strong gains on Monday, and what we are seeing today could be some consolidation,” said Vinod Nair, head of research at Geojit Financial Services.

Television channels reported citing sources that the Reserve Bank of India Governor Urjit Patel might consider resigning given a breakdown in relations between the government and the central bank due to issues, including liquidity for non-banking financial companies.

However, analysts don't believe that the share market was a prey to selling pressure because of the speculations.

The movement seen in the market today doesn't factor in the kind of a scenario where RBI's top brass exits, said Dhananjay Sinha, head-institutional research, Emkay Global Financial Services, adding that it would be worth looking at what foreign institutional investors do, given the market's significant exposure to global investors.

“We have a fairly fragile financial system... In this context, if RBI's top brass exits, there is a likelihood that instability will be perceived, and that can have an impact on the economy and the market at large,” Sinha said.

BoB shares jump over 4%

 

Bank of Baroda Ltd shares rose as much as 4.3 per cent to Rs 114.75, their highest since September 21. BoB stock was on track for fourth straight session of gains. Read more

Dr Reddy's nosedives 6.6%

 

Shares of Dr Reddy's Laboratories Ltd dropped as much as 6.6 per cent to Rs 2,423.05, their biggest daily percentage loss since July 16. The stock was the top percentage loser on the NSE index. Read more

HDFC Top 100

Among the relatively better-performing funds in the ongoing market mayhem is old warhorse HDFC Top 100 — HDFC Top 200 until May 2018, before SEBI’s new categorisation rules. HDFC Top 100 has also done better than its benchmark, Nifty 100 TRI, by 1-2 percentage points annualised over five to 10-year periods. Click here to read more

BSE sectoral indices

Metal index fell 2.5% followed by power 0.95%, PSU 0.61% and auto 0.5%. On the other hand, IT index was the star-performer and was up 2.19%, TECk 1.6%, healthcare 1.13% and oil & gas 0.4%.

 

Top 10 Nifty gainers, losers

Tech Mahindra gained the most by 6.9% followed by Infosys 3.2%, UPL 2.5% and Indiabulls Housing Finance 2.34%. On the other hand, Tata Steel plunged 4.7%, Coal India 3.14%, Dr Reddy's 3.01% and Hindalco 2.95%.

 

Pre-noon trade

The Sensex was trading down 79.77 points or 0.24 per cent at 33,811.36 and the Nifty down 14.75 points or 0.19 per cent at 10,179.25 on heavy selling in metal, power, PSU and auto stocks.

Investor sentiment turned weak on reports that the government may invoke certain provisions to issue directions to the central bank.Rumours were rife that the RBI Governor Urjit Patel might offer to resign if Section 7 of the RBI Act is invoked to transfer reserves.

Section 7 of the RBI Act empowers the Government to consult and give instructions to the Governor to act on certain issues that the Government considers serious and in public interest.

Traders said concerns over RBI governor Urjit Patel’s future, after reports said that the spat between the central bank and the government worsened, weighed on the market and the rupee.

Brent crude jumps to $76

Oil prices climbed for the first time in three days, but rising supply and fears over the outlook for demand amid the US-China trade war kept pressure on the market. Brent crude futures had gained 36 cents, or 0.5 per cent, to $76.27 a barrel by 0110 GMT. Read more

Coal India hits over 3-week low

 

Shares of Coal India Ltd fell as much as 4.4 per cent to Rs 263.8, their lowest since October 8 on 3 per cent stake sale by the government. Read more

Rupee slumps to 74.14

 

The rupee dropped by 46 paise to 74.14 against the US dollar due to concerns over growing rift between the Government and the RBI. Sustained FII outflows and dollar demand from importers also weighed on the domestic unit. Read more

The Sensex plunged 159 points from intraday high of 34,050.12 against the previous close of 33,891.13 due to growing tension between the Government and the Reserve Bank of India. Investor sentiment turned weak on reports that the government may invoke certain provisions to issue directions to the central bank.

Rumours were rife that the RBI Governor Urjit Patel might offer to resign if Section 7 of the RBI Act is invoked to transfer reserves. Section 7 of the RBI Act empowers the Government to consult and give instructions to the Governor to act on certain issues that the Government considers serious and in public interest.

Traders said concerns over RBI governor Urjit Patel’s future, after reports suggesting the spat between the central bank and the government worsened, weighed on the market and the rupee.

At 10.45 am, the Sensex was trading down by 180.96 points or 0.53 per cent at 33,710.17 and the Nifty down 56.45 points or 0.55 per cent at 10,141.95.

Meanwhile, foreign portfolio investors sold shares worth Rs 1,592.02 crore, and DIIs were net buyers to the tune of Rs 1,363.04 crore on Tuesday.

Nikkei jumps to 1-week high

 

The Nikkei share average gained 1.6 per cent to 21,810.47 in midmorning trade, the highest level since October 24. Chip equipment makers jumped, after the Philadelphia SE Semiconductor index surged 4.2 per cent overnight and helped US chip shares outperform. Read more

NSE sectoral indices

Metal, media, auto and bank stocks plunged between 0.76-2.24 per cent .

 

BSE sectoral indices

Metal, power, PSU and infrastructure fell the most between 1.2-2.85 per cent. On the other hand, IT index was up 0.75 per cent and TECk 0.27 per cent.

 

 

Asian markets

 

Asian stocks pulled away from 20-month lows, thanks to a rebound on Wall Street. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.75 per cent, but it was still on track to fall roughly 11 per cent this month. Read more

Sensex gainers, losers

Top 10 Nifty gainers, losers

 

Sensex, Nifty movement

 

 

 

The Sensex slipped into the negative terrain after hitting intraday high of 34,050. At 9.50 am, the BSE index was trading down 85.42 points or 0.25 per cent at 33,805.71 and the NSE index down 26.4 points or 0.26 per cent at 10,172.

Top five Sensex losers were Coal India, Tata Steel, Bharti Airtel, PowerGrid and Adani Ports, while the only four gainers were HDFC, Infosys, Hero MotoCorp and YES Bank.

TechM shares jump nearly 3%

 

Tech Mahindra shares were trading up by 2.57 per cent at Rs 701.20 as the company has posted a 27 per cent rise in net profit compared to the same period last year, beating market expectations. The company posted a profit of ₹1,064.3 crore. The stock hit intraday high of Rs 703 and a low of Rs 671.25 against the previous close of Rs 683.65.

Broker's call

Centrum Wealth Research

RBL Bank (Buy)

CMP: ₹526

Target Price: ₹600

Click here to read more

Coal India: Offer-for-sale set to open

 

The Centre has offered a 3 per cent stake in Coal India, targeting to mop up nearly ₹4,953.51 crore through auction method under offer-for-sale via stock exchanges. The floor price for the offer-for-sale — which opens on Wednesday — is ₹266 a share of ₹10 each. The shares of Coal India is trading at Rs 264.30, down 4.20 per cent in BSE. More here

Opening bell

The 30-share BSE index Sensex opened higher by 72 points at 33,963.09 against the previous close of 33,891.13. The 50-share NSE index Nifty opened up by 36.75 at 10,235.15 against 10,198.40.

Day Trading Guide

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹1914 • HDFC Bank

 

₹660 • Infosys

 

₹279 • ITC

 

₹153 • ONGC

 

₹1057 • Reliance Ind.

 

₹273 • SBI

 

₹1895 • TCS

 

10229 • Nifty 50 Futures

 

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

Today's Pick

We recommend a buy in the stock of Sobha at the current levels of ₹448.1. Stop-loss can be placed at ₹430 for the target of ₹490. Revise the stop-loss higher to ₹455 as soon as the stock moves up to ₹465. Read more