Sensex ends 358 points higher; Nifty at 11,062

Closing bell

The 30-share BSE index Sensex closed at 36,975.23 points, higher by 358.42 points or 0.98 per cent, while the broader NSE index Nifty reclaimed the 11,000 mark and ended at 11,062.45, higher by 128.10 points or 1.17 per cent. The tech stocks lent support to the indices.

Investor sentiment was bullish ahead of the Reserve Bank of India’s policy outcome, scheduled for Thursday, analysts said. The RBI’s Monetary Policy Committee (MPC) began its three-day meet Tuesday to decide on key rates.

According to experts, the MPC is likely to change its policy stance to ‘neutral’ from the current ‘calibrated tightening’ on low inflation footprint but would refrain from cutting interest rates due to fiscal challenges and rising crude oil prices. RBI will have room to provide a dovish tilt to the upcoming policy along with a change in stance, a Kotak report said.

Among the sectoral indices, the metal stocks trader higher by 2.44 per cent followed by TeCK, IT, oil and gas and energy indices.

In the Sensex pack, Bajaj Finance, Tata Steel, ONGC, Bajaj Auto, Sun Pharma, NPTC, Coal India, Maruti, Tata Motors, ICICI Bank and Reliance surged up to 4.34 per cent.

On the other hand, Axis Bank and IndusInd Bank fell up to 0.54 per cent.

In NSE, Tech Mahindra stocks was the major gainer followed by Cipla, Zee Entertainment, Bajaj Finance and Tata Steel.

The top losers were Adani Ports, IndusInd Bank, Dr Reddy's, Titan and Axis Bank.

Broader indices, however, ended on a mixed note, with the BSE LargeCap rallying 1.13 per cent, BSE MidCap slipping 0.12 per cent and BSE SmallCap inching up 0.05 per cent.

Sustained buying by domestic and foreign institutional investors also boosted trading sentiment, traders said. On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 420.65 crore Tuesday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 194.31 crore, provisional data available with BSE showed.

(With inputs from PTI)

Rupee the 'whipping boy', but to dodge record low

 

The Indian rupee is set to underperform against the dollar again this year, weighed down by uncertainty ahead of a national election in May, but is unlikely to retest life-time lows, a Reuters poll showed. Read more on the performance of rupee here

European stocks

 

European equities opened little changed, with banking shares falling, as investors continued watching the latest company results as a barometer of economic growth. The Stoxx Europe 600 Index was down 0.1 per cent. Read more on the European Stock report here

Fitch puts Tata Motors on negative

 

Fitch Ratings has placed the credit rating of Tata Motors Ltd on negative watch, stating increasing risks for its British luxury car unit - Jaguar Land Rover (JLR) - over a potentially chaotic Brexit. This comes after the ratings agency placed the credit ratings of JLR, Britain's biggest carmaker, under review for possible downgrades. Click here to read more on the Fitch ratings of Tata Motors here .

The stocks of Tata Motors was trading at Rs 178.70, higher by 1.79 per cent.

Bullion market

 

Gold prices declined marginally by Rs 25 to Rs 34,450 per 10 gram at the bullion market on muted demand from jewellers, according to the All India Sarafa Association. Globally, gold traded lower at $ 1,313.58 an ounce, while silver was also down at $ 15.75 an ounce in New York. More on the bullion market here

Markets update

The 30-share BSE index Sensex was trading higher by 0.96 per cent or 351.30 points at 36,968.11. While the bank stocks - IndusInd and Axis Bank were trading in red, scrips of Reliance Industries, ICICI Bank, Infosys, TCS and ITC were lending support to the index.

Among the sectoral indices, the positive zone was led by Metal stocks trading higher by 2.42 per cent, followed by IT (1.34%) and TEcK (1.69%).

The broader NSE index Nifty was trading higher by 1.13 per cent at 11,058.30. The stock of Tech Mahindra was leading the positive zone followed by Zee Entertainment, Tata Steel, Grasim and Bajaj Finance.

The stocks of Adani Ports, Dr Reddy's, Titan, IndusInd Bank and Axis Bank were trading in red

Dr Reddy’s continues to recall Levetiracetam Injection  

 

Dr Reddy’s Laboratories Ltd announced it’s wholly-owned subsidiary in USA is continuing its voluntary nation-wide recall of lot ABD807 of Levetiracetram in 0.54 per cent Sodium Chloride injection to the hospital level in the North American country. Read more on the recall of the injection by Dr Reddy's here

The stocks of Dr Reddy's was trading lower by 1.53 per cent at Rs 2,783

Top gainers and losers

BSE

NSE

 

News Analysis

Bhushan Power & Steel: NCLT ruling focuses on the value of bids, but delays put IBC process under question. The NCLAT had on February 4, upheld JSW Steel’s bid for Bhushan Power & Steel. Read our Analysis on the NCLT ruling in the Bhushan Power & Steel case .

The stock of Bhushan Steel were trading at Rs 27.25, lower by 2.50 per cent

RBI slaps fine on three banks

 

The RBI has imposed a monetary penalty of ₹2 crore each on UCO Bank and Axis Bank, and ₹1 crore on Syndicate Bank. The RBI said, “This penalty has been imposed in exercise of powers vested in the RBI under the provisions of the Banking Regulation Act, 1949.” Read more on the monetary penalty imposed on the three banks here

Broker's call: UPL

Elara Capital

CMP : ₹796.25

Target price : ₹915

 

UPL’s (formerly United Phophorus Ltd) consolidated Q3 revenue came in at ₹4,920 crore, up17 per cent y-o-y, broadly in line with our estimates, driven largely by robust growth in Europe and Latin America, up 37 per cent y-o-y to ₹5.11 crore and 26 per cent y-o-y to ₹228 crore, respectively. Read our Broker's call on UPL here

Steel companies seek higher duties on import

 

Indian steel firms are putting pressure on the government to impose higher duties on imports as trade disputes and a global economic slowdown divert surplus Asian steel stocks to India, industry executives and government sources said. JSW Steel Ltd, Tata Steel Ltd, Jindal Steel and Power Ltd and state-owned Steel Authority of India Ltd are the key companies who have complained. Read more on the steel companies demand and government response here

Markets updates

Sensex surges over 330 points after the IT, Metal and Teck stocks lend support to the index. The 30-share index was trading at 36,954.97, higher by 338.16 points or 0.92 per cent. While the major gainers were Reliance Industries, ICICI Bank, Infosys, TCS and ITC, the top losers were Axis Bank, NTPC, IndusInd Bank, Bharti Airtel and Yes Bank.

The 50-share NSE index Nifty was trading at 11,052.95, higher by 118.60 or 1.08 per cent. The positive zone was led by Zee Entertainment, Tech Mahindra, Tata Steel, Bajaj Finance and Grasim. The stocks of Dr Reddy's, Adani Ports, Axis Bank, Titan and IndusInd Bank were trading in red.

 

After RCom, fear of financial default spreads to other stock

 

The bear grip that mauled Anil Ambani Group stocks on Tuesday spread to other stocks. According to market participants, fear of financial default and margin call triggered a panic selling in Suzlon Energy, CG Power and Industrial Solutions, JP Associates, and IRB Infrastructure Developers shares. Read more on the stock activity of other stocks following the plunge in RCom stocks

Nifty Call

 

The Nifty 50 futures contract seems to have gained momentum as it has broken the prolonged sideways range above 11,000. The outlook is bullish. Traders can go long at current levels. Stop-loss can be placed at 11,015 for the target of 11,110. Read our Nifty Call for February futures here

RCom shares tank nearly 13%

 

Shares of Reliance Communications continued to reel under selling pressure on Wednesday, falling below its face value of Rs 5, plunging nearly 13 per cent. RCom stock plummeted 10.84 per cent to Rs 4.85 -- its all-time low -- on BSE. Click here to read more on the stock activity of Reliance Communications

Markets update

The 30-share BSE index Sensex surged 288.90 points or 0.79 per cent to 36,905.71 as the IT and Teck stocks lent support to the index. While the major gainers were Reliance Industries, ICICI Bank, Infosys, HDFC Bank and TCS, the negative zone was led by IndusInd Bank, Axis Bank, NTPC, Bharti Airtel and Tata Motors.

Among the sectoral indices, Metal, Energy, Information Technology and Teck stocks were trading over 1.20 per cent. In the negative zone, the consumer durables index was the major loser with 0.51 per cent.

The 50-share NSE index Nifty was trading higher by 99.15 points or 0.91 per cent at 11,033.50.

Zee Entertainment, Tech Mahindra, Tata Steel, Grasim and Bajaj Finance were the top gainers. And the stocks were Adani Ports, Dr Reddy's Bharti Airtel, IndusInd Bank and Titan were trading in red.

'Major threats to equity market'

 

Political populism, global slowdown are major threats to equity market, Anand Radhakrishnan, Managing Director, Franklin Templeton (India) said. Franklin Templeton Investments sees rhetoric on competitive populism by political parties in the run-up to the General Elections and global slowdown as major threats to the equity market this year. Click here to read more on major threats to the equity market this year.

Commodity call

 

The Zinc futures contract on the Multi Commodity Exchange (MCX) rallied in the past week breaking above the key resistance level of ₹193.5 per kg in line with expectations. Traders with a medium-term perspective can go long on dips at ₹195 and ₹193. Stop-loss can be placed at ₹183 for the target of ₹212. Read our Commodity call on MCX-Zinc here

Editorial - Ballots and bourses

 

With the Interim Budget behind, the stock market will turn its attention towards the general elections scheduled mid-year. Nervousness among market participants is already palpable. Read the editorial on the upcoming general elections' impact on the stock markets here

Markets update

The 30-share BSE index Sensex was trading higher by 288.16 points or 0.79 per cent at 36,904.97. The stocks of IT, TecK and Energy were trading over 1.3 per cent, lending support to the index.

While the stocks of Reliance Industries, ICICI Bank, Infosys, TCS and HDFC were major gainers, IndusInd Bank, Bharti Airtel, NTPC, Axis Bank and Vedanta Limited were trading in the negative zone.

The broader NSE index Nifty breached the 11,000 mark and is trading at 11,030.95, higher by 96.60 points or 0.88 per cent.

 

Greater efforts will be needed to reduce fiscal deficit: IMF

 

“The interim budget envisages a slower pace of fiscal consolidation than previously planned, delaying the time to reach the medium-term central-government debt target of 40 percent of GDP,” Ranil Salgado, IMF mission chief for India said. Click here to read more on IMF's view on the fiscal deficit target set by the government

Jubilant withdraws plan to seek corporate brand royalty

Jubilant Bhartia Group has decided to withdraw plans to seek corporate brand loyalty from its three group companies - Jubilant FoodWorks, Jubilant Life Sciences and Jubilant Industries.

The shares of Jubilant FoodWorks was trading at Rs 1,251.20, lower by 3.99 per cent, Jubilant Life Sciences was trading at Rs 719.92, lower by 2.49 per cent and Jubilant Industries at Rs 107, higher by 4.75 per cent.

 

US stocks

 

US stocks rose on Tuesday as largely upbeat corporate results fuelled investor optimism ahead of the highly awaited State of the Union address by President Donald Trump. Technology and consumer discretionary shares, which have driven Wall Street's advance in the current bull market, led the day's gains. Following a turbulent end to 2018, US stocks have had a stellar run this year with the S&P 500 and the Dow each up about 9 per cent and the Nasdaq rising 11 per cent. Read the US stock markets report here

Shares rise for fifth session

The shares rose for a fifth straight session, with Tech Mahindra Ltd leading gains in IT stocks, while investors also await the outcome of a three-day central bank policy meeting that ends on Thursday.

The BSE index Sensex was trading at 36,816.01, higher by 199.20 points or 0.54 per cent. The broader NSE index Nifty was trading higher by 65.30 points or 0.60 per cent at 10,999.65.

Tech Mahindra hit a life high in early trade after the software services exporter reported a nearly 28 per cent rise in net profit on Tuesday, which beat analysts' estimates. The sentiment rubbed off on the IT index, which gained 1.75 per cent. Tata Consultancy Services Ltd and Infosys Ltd rose 0.9 per cent and 1.4 per cent, respectively.

The RBI is likely to change its monetary policy stance to “neutral” from “calibrated tightening”, in the first meet under the leadership of Shaktikanta Das, who was appointed last December. A softer stance could aid Prime Minister Narendra Modi's government, which wants to boost lending and lift growth as it faces national elections by May.

However, analysts are still skeptical of investor risk appetite, suggesting that events like elections will only have a temporary impact on markets. “Most of the market is in bad shape. The numbers you see on the indexes are driven by a handful of stocks such as Reliance Industries, a few IT stocks and a couple of private sector banks,” said Neeraj Dewan, director at Quantum Securities.

“Due to issues such as liquidity crunch, IL&FS crisis, investors have become risk-averse and the only way that changes is if companies post healthy results consistently for a few quarters.”

Hindustan Petroleum Corp Ltd rose as much as 3.3 per cent after posting a quarterly profit compared to a loss predicted by fifteen analysts based on Refinitiv Eikon data. Peers Bharat Petroleum Corp Ltd and Indian Oil Corp Ltd were also in the green as Brent crude price was largely unchanged.

Dhanlaxmi Bank set to focus on NPA reduction

 

When T Latha, the MD and CEO of Dhanlaxmi Bank, took over the reins of the crisis-ridden bank in July 2018, she had some definite plans to turn around the 90-year-old institution. In an interview, she speaks on the initiatives taken to enhance the business, as well as strengthening the monitoring mechanism to arrest fresh slippages. Read the interview of T Latha, MD & CEO of Dhanlaxmi Bank here

The stock of Dhanlaxmi Bank was trading lower by 2.47 per cent at Rs 15.80

Infosys hits record high

Shares of India's second largest software services exporter  Infosys Ltd  gain as much as 1.6 per cent to a record high of Rs 766.95. The stock was trading up 15.18 per cent this year as of last close

 

Currency market

 

The rupee appreciated by 8 paise to 71.49 in early trade on the forex market amid positive opening in domestic equities and fresh foreign fund inflows. Forex traders said investors were cautious ahead RBI’s Monetary Policy Committee outcome scheduled for February 7. Read the currency market report here

Markets update

The 30-share BSE index Sensex trades over 200 points as the stocks of Reliance Industries, ICICI Bank and Infosys lend support.

Sensex was trading at 36,819.01, higher by 202.20 points or 0.55 per cent. The stocks of Infosys gained 1.6 per cent to a record high of Rs 766.95. However, the scrips of IndusInd Bank, L&T and Bharti Airtel was trading in red.

Among the sectoral indices, I&T and TecK stocks were major gainers trading higher by over 1.2 per cent while the realty stocks led the negative zone.

The 50-share NSE index Nifty was trading at 10,995.85 higher by 61.50 points or 0.56 per cent as the stocks of Zee Entertainment and Tech Mahindra lent support. The other major gainers were Hindustan petroleum, ICICI Bank and NTPC.

The negative zone was led by Adani Ports followed by IndusInd Bank, Dr Reddy's, Vedanta Ltd and Bharti Airtel

Commodities market

 

Oil prices edged higher for the first time in three sessions, although concerns over the outlook for the global economy capped gains. Global economic worries have weighed on market sentiment in recent days, offsetting support from signs that global supplies are tightening. More on the commodities market here

Broker's call: Bandhan Bank

JMFL

Bandhan Bank (Buy)

CMP: ₹415.55

Target: ₹600

 

Bandhan Bank has seen a sharp correction in its market cap (₹8,600 crore, 15 per cent fall) since the announcement of its merger with Gruh Finance, and we believe the impact of EPS/BVPS dilution (13 per cent/14 per cent in FY20E) as a result of the rich price paid for the acquisition has been more than factored in. Read our Broker's call on Bandhan Bank here

NTPC red flags payment delays from three states

NTPC has threatened to ‘regulate’ power supply to Telangana, Karnataka, Andhra Pradesh from February 9 due to payment delays. The power generator said the three southern states have not paid bills totalling ₹ 4,138.39 crore for over two months now. The dues include payments for power supply from thermal and solar power projects.

The stock of the public sector undertaking NTPC was trading higher by 1.44 per cent at Rs 136.35 in the BSE index Sensex.

 

Markets update

The 30-share BSE index Sensex trades higher by 193.19 points or 0.53 per cent as the stocks of Reliance Industries, Infosys and ICICI Bank lend support. The stocks of IndusInd Bank and Bharati Airtel were trading in red.

Among the sectoral indices, the I-T and TecK stocks were trading higher by over 1 per cent at 1.42 and 1.32 per cent respectively. The telecom stocks were the major loser.

The 50-share NSE index Nifty is trading at 10,993.25 after breaching the 11,000 mark for a brief period in the morning session. The stocks of Zee Entertainment, Tech Mahindra, Hindustan Petroleum, NTPC and Grasim were lending support to the index. The scrips of Adani Ports, Bharati Airtel, IndusInd Bank and Titan were trading in red.

Bad loans moderate at PNB, but profitability weak

 

At first glance, Punjab National Bank’s lower slippages, fall in provisioning, and improvement in capital adequacy ratio in the latest December quarter lend comfort, particularly after the tumultuous performance in the September quarter.

 

But a huge bad loan book of ₹77,000 crore, substantial write-offs, and weak core performance suggest that earnings may continue to be under pressure with no sharp recovery in the near term. Read our Analysis on the Q3 results of Punjab National Bank here

The stocks of the PNB were trading at Rs 73.15, lower by 0.54 per cent in the BSE index Sensex.

Forex market

 

The dollar index against a basket of six major currencies hovered near an 11-day high of 96.12 reached overnight. Immediate investor focus was on President Trump's State of the Union address. Read the forex market report here

Markets update: Sensex jumps over 250 points; Nifty breaches 11,000 mark

BSE benchmark Sensex jumped over 250 points and NSE Nifty breached the 11,000 mark led by gains in IT and metal stocks amid heavy buying by domestic and foreign institutional investors.

The 30-share index was trading 255.89 points, or 0.70 per cent, higher at 36,872.70. Similarly, the 50-share NSE Nifty reclaimed the 11,000 mark, rallying 81.40 points, or 0.74 per cent, 11,015.75.

“The Indian market is embracing for the monetary policy to be released on February 7; and majority of the economists now expect status quo against a rate cut sometime back,” said Paras Bothra, President, Equity Research, Ashika Group.

The RBI’s Monetary Policy Committee (MPC) began its three-day review meet on Tuesday. “Foreign participation has certainly gained pace after the US Fed’s patient view and is expected to support stocks with strong underlying fundamentals,” he added.

Top gainers: HCL Tech, NTPC, ONGC, RIL, Infosys, ICICI Bank, Asian Paints, Bajaj Finance, ITC and HDFC were the top gainers in the Sensex pack, rising up to 2 per cent.

Top losers: Hero Bharti Airtel, IndusInd Bank, Tata Motors, Vedanta and L&T were the losers, shedding up to 1.33 per cent.

On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 420.65 crore Tuesday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 194.31 crore, provisional data available with BSE showed.

Asian markets

 

Asian shares started cautiously on Wednesday as investors waited to see if U.S. President Donald Trump drops any hints of progress on tariffs in his State of the Union speech. Investors are also interested in any detail on a long-touted plan for infrastructure spending, which has yet to get a single road or bridge built. Read the full Asian markets report here

Stocks in focus

Bosch | The ₹2,159-crore buyback offer of Bosch will open for subscription on Wednesday and close on February 20. The automobile parts maker plans to buy back 10.27 lakh shares at ₹21,000 a share.

HEG | Shares of HEG will remain in focus, as they turn ex-date on Thursday for the proposed ₹750-crore buyback. The company plans to buy back 13.63 lakh shares at ₹5,500 a share through the tender route.

Company Results | About 80 firms will declare their Q3 FY19 results on Wednesday. Among these are Adani Ports, Adani Power, Allahabad Bank, AstraZeneca, BA Sugars, Cipla, CG Power, Cummins, Future Consumer, Graphite India, Gateway Distriparks, Honda Siel, Himatsingka Seide, JSW Steel, Jindal Stainless, Kaya, Lupin, Manappuram Fin, MCF, Minda Ind, New India Assurance, PTC India, Punj Lloyd, Siemens, TBZ, Wheels India, Venky’s (India), Vodafone Idea and Zydus Wellness.

Opening bell

The 30-share BSE index Sensex opened at 36,714.54, higher by 97.73 points against the previous close of 36,616.81.

The broader NSE index Nifty opened marginally higher by 32.15 points at 10,966.40 against the previous close of 10,934.35.

Day Trading Guide

₹2115 • HDFC Bank

 

₹754 • Infosys

 

₹274 • ITC

 

₹143 • ONGC

 

₹1290 • Reliance Ind.

 

₹284 • SBI

 

₹2044 • TCS

 

10951 • Nifty 50 Futures

 

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

Today's Pick

 

We recommend a buy in the stock of Dhampur Sugar Mills at the current levels of ₹174. Key support in the band between ₹155 and ₹157 is cushioning the stock. Traders can buy the stock with a stop-loss at ₹170.5. Read our today's stock recommendation here