MARKET WRAP: Sensex gains 131 pts\, Nifty ends at 10\,802; banks\, pharma rise

MARKET WRAP: Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise

The S&P BSE Sensex gained 131 points or 0.36 per cent to settle at 35,981 with Sun Pharma (up 4 per cent) being the top gainer and Kotak Mahindra Bank (down over 1 per cent) the worst performer.

SI Reporter  |  New Delhi 

Markets, Up, Down, BSE, NSE, Stocks
Photo: Shutterstock.com

The domestic equity market ended in the positive territory for the third straight day on Tuesday, aided by supportive global cues and buying in heavyweights such as ICICI Bank, SBI, Axis Bank and Sun Pharma. The S&P BSE Sensex gained 131 points or 0.36 per cent to settle at 35,981 with Sun Pharma (up 4 per cent) being the top gainer and Kotak Mahindra Bank (down over 1 per cent) the worst performer.  

The broader Nifty50 index of National Stock Exchange (NSE) reclaimed the crucial 10,800 level to end at 10,802, up 30 points or 0.28 per cent with 24 components advancing and 26 declining. 

In the broader market, the S&P BSE Midcap index ended at 15,127, down 25 points or 0.16 per cent, while the S&P BSE SmallCap index signed off the day 24 points or 0.17 per cent higher at 14,625.

BUZZING STOCKS

Shares of ICICI Bank ended at a record high of Rs 381.60 apiece on BSE, up 3.46 per cent. The stock surpassed its previous high of Rs 375.25 touched on November 16, 2018.

During the past four weeks, the stock of private sector lender has outperformed the market by surging 9.5 per cent on hopes of strong earnings in the October-December quarter (Q3FY19). In comparison, the S&P BSE Sensex gave 2 per cent return during the same period.

Shares of Gruh Finance tanked 16.39 per cent to Rs 256 apiece after it announced amalgamation with Bandhan Bank in an all-stock deal. According to the share swap ratio, for every 1,000 shares of Gruh Finance shareholders will get 568 shares of Bandhan Bank. This is around 7 per cent discount to the closing price of Gruh Finance as of Monday (January 7, 2019).

Gruh Finance, promoted by the country's largest mortgage firm HDFC, is into the financing of affordable housing segment. HDFC owns 57.86 per cent in Gruh Finance as on September 30, 2018.

Sectorally, PSU bank stocks gained the most followed by pharma and private sector lenders. The Nifty PSU Bank index soared 2.77 per cent to end at 3,195, with all the 12 components ending in the green. 
 
Global Markets

Asian shares rose for the third straight session on Tuesday as investors bet that Washington and Beijing are inching toward a trade deal and that US Federal Reserve would halt its tightening if economic growth slows further.

Japan's Nikkei rose 1.0 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1 per cent.

Oil Prices

Oil prices edged up on Tuesday, supported by hopes that US-Chinese talks in Beijing would bring a halt to a trade dispute between the world’s biggest economies, while the start of OPEC-led supply cuts also tightened markets.

US West Texas Intermediate (WTI) crude oil futures were at $48.69 per barrel, up 17 cents, or 0.4 per cent from their last settlement. International Brent crude futures had yet to trade.

(with Reuters input)
MARKET WRAP: Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise

Top sectoral gainers and losers on NSE

MARKET WRAP: Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise

Top gainers and losers on S&P BSE Sensex

MARKET WRAP: Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise

Market at close   The S&P BSE Sensex added 131 points or 0.36 per cent to settle at 35,981 while the broader Nifty50 index of NSE closed at 10,802, up 30 points or 0.28 per cent. 

MARKET WRAP: Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise

EARNINGS PREVIEW | Motilal Oswal Financial Services on Auto   Auto Universe is expected to report a 9% YoY PAT decline on a strong base (44% YoY growth in base quarter) – a third consecutive quarter of PAT decline. Excluding Tata Motors, the Auto Universe is expected to post flattish profits. We expect EBITDA margin to shrink by 100bp YoY to 12%, impacted by weak operating leverage (volumes softened across the board in 3QFY19), a weak INR and heightened competitive intensity in two-wheelers. 

MARKET WRAP: Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise

Nifty PSU Bank index hits 4-month high; SBI, Canara Bank up 3% Shares of public sector undertaking (PSU) banks continued their upward journey with Nifty PSU Bank index hitting a four-month high on Tuesday on the expectation of decline in bad loans. Nifty PSU Bank index, the largest sectoral gainer, was up 2.6% at 3,192 levels, trading at its highest level since September 6, 2018, on the National Stock Exchange (NSE). In comparison, the Nifty Bank and Nifty Private Bank index were up 0.6% each, while the benchmark Nifty 50 index was up 0.32% at 02:19 pm. Read more

MARKET WRAP: Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise

CLSA on Cement sector   Over the past decade, the cement industry has witnessed a decline in utilisation rates, despite which, cement prices have held up fairly well. FY19 is likely to end with near double-digit demand growth, which will also take up utilisation. This much-anticipated event, however, has been a big disappointer as prices did not see any benefit and in fact, unit Ebitda margins contracted in FY19.    Lower energy prices are a relief but cement prices are the key, and uncertainty prevails here, which is quite counter-intuitive in the context of rising utilisation rates. We yet again trim our FY19-21 EPS estimates for the major players by 3%-15%. We now have a SELL rating on UltraTech, Grasim, India Cements (downgraded from BUY), and downgrade Shree & Ambuja from BUY to O-PF and Dalmia from BUY to U-PF. Ramco and ACC remain BUYs.

MARKET WRAP: Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise

YES Securities on Roads sector   The Roads sector has faced rough weather in FY19 owing to:   a) overall weakness in project awarding;  b) delays in financial closure for Hybrid Annuity projects; and  c) poor response to second bundle of Toll Operate Transfer (TOT) projects.    Although most decent-sized road contractors have achieved financial closure for their projects, other issues yet remain as industry woes. FY18 ended on a strong note of hope with order awards aggregating a whopping 17,055 kms and construction of 9,829 kms. FY19 thus promised a lot, especially being the pre-election year. However, only 2,105 kms have been awarded in first eight months of FY19 with construction of 5,759 kms. With FY19 targets of awards set at 20,000 kms, there’s too much for the Ministry to catch up in the last four months.

MARKET WRAP: Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise

Oil prices steady on trade talk hopes and OPEC cuts, but slowdown looms Oil prices were stable on Tuesday, supported by hopes that talks in Beijing between US and Chinese officials might defuse trade disputes between the world's biggest economies, while OPEC-led supply cuts also tightened markets. International Brent crude futures were at $57.42 per barrel, up 9 cents, or 0.2 per cent from their last close. Read more

MARKET WRAP: Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise

Top gainers on BSE500 COMPANY PRICE() CHG() CHG(%) VOLUME H F C L 23.20 1.95 9.18 2411912 TEJAS NETWORKS 216.00 15.20 7.57 5771 SREI INFRA. FIN. 35.10 2.00 6.04 361896 ASHOKA BUILDCON 133.00 6.35 5.01 16440 SYNDICATE BANK 41.20 1.45 3.65 198665 » More on Top Gainers

MARKET WRAP: Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise

Ashoka Buildcon, Sadbhav Engineering gain up to 6% in range-bound market Shares of infrastructure companies – Ashok Buildcon and Sadbhav Engineering rallied by up to 6% on BSE in an otherwise range-bound market on Tuesday. Sadbhav Engineering soared 6% to Rs 230 apiece, after the company said it received an appointment letter dated January 5, 2019 for road contract worth of Rs 1,620 crore of Maharashtra Samruddhi Mahamarg. The stock was trading at its highest level since October 22, 2018 on the BSE. Read more  

MARKET WRAP: Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise

Market check Index Current Pt. Change % Change   S&P BSE SENSEX 35,921.34 +71.18 +0.20   S&P BSE SENSEX 50 11,281.61 +24.15 +0.21   S&P BSE SENSEX Next 50 32,615.91 +35.97 +0.11   S&P BSE 100 11,070.41 +22.01 +0.20   S&P BSE Bharat 22 Index 3,472.65 +4.31 +0.12

First Published: Tue, January 08 2019. 08:08 IST