Sensex rallies 401 points on firm global cues, Nifty settles above 7,560; Yes Bank gains over 11%

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Benchmark indices BSE Sensex and NSE Nifty gained over 1.5 per cent on Friday on account of buying in frontline blue chip stocks amid firm global cues. Sentiments improved further after a government report showed that India’s fiscal deficit stood at Rs 4.88 lakh crore during April-December, or 87.9 percent of the full-year target, indicating a improvement in its finances. The deficit was 100.2 percent of the full-year target during the same period a year ago.

Sensex closed 401.12 points up at 24870.69, while Nifty settled 138.90 points up at 7,563.

In the 50-share index, Yes Bank surged the most — 11.53 per cent, followed by Vedanta (up 6.69 per cent), Sun Pharma (up 5.26 per cent), Hero MotoCorp (up 4.98 per cent) and Coal India (up 4.44 per cent). On the other hand, Bank of Baroda, State Bank of India and Tata Steel slid 4.19 per cent, 3.08 per cent and 2.30 per cent, respectively.

Gaurav Jain, director, Hem Securities, said, “Market welcomed the Feb series on a firm note led by strong global cues and rebound in crude oil prices. Further, Bank of Japan negative interest rate policy and strong rupee has also cheered the sentiment of the investors.”

Sector-wise, the BSE TECk index advanced the most by gaining 2.04 per cent, followed by realty (0.84 per cent), power (1.64 per cent) and oil & gas (1.58 per cent).

Telecom stocks remained under pressure for second day in a row after the Telecom Regulatory Authority of India (Trai) had proposed auction of 700 MHz spectrum at a reserve price of Rs 11,485 crore per MHz. This is the highest reserve price fixed for a band ever since the process for spectrum auction started nearly five years ago. The BSE Telecom index slid 1.05 per cent to 1,170.38.

In a scrip specific development, Shares of Yes Bank surged after the lender reported a better-than-expected 25 per cent increase in quarterly profit.

Vedanta shares closed 6.62 per cent up despite reporting a 99 per cent fall in profit after the mining company said it was making efforts to cut costs aggressively.

Larsen & Toubro shares gained over 2 ahead of its third quarter results due later in the day.

Market breadth for the day remained strongly positive and advances to declines ratio for Nifty stood at 39:10 for the day.

Asian equity markets ended in green on Friday, after Wall Street stocks rebounded overnight, crude prices extended overnight gains and the safe-haven Japanese yen weakened in the wake of further Bank of Japan easing. Japanese shares ended higher after the Bank of Japan (BoJ) unexpectedly eased monetary policy further by introducing a negative interest rate policy. The BoJ said it was adopting an interest rate of minus 0.1 per cent, adding that it would charge interest for excess reserves financial institutions park with the central bank. The BoJ also said it would cut interest rates further into negative territory if necessary. China stocks rebounded as investors looked for bargains among severely beaten down shares, but the market is still on track to post its biggest monthly fall since the depths of the global financial crisis. Investors drew some relief after the People’s Bank of China said it would increase the frequency of open market operations between January 29 and February 19 to keep the banking system flush with cash.
Asian Indices Last Trade Change in Points Change in %
Shanghai Composite 2,737.60 81.94 3.09
Hang Seng 19,683.11 487.28 2.54
Jakarta Composite 4,615.16 12.33 0.27
KLSE Composite 1,667.80 33.27 2.04
Nikkei 225 17,518.30 476.85 2.8
Straits Times 2,629.11 66.66 2.6
KOSPI Composite 1,912.06 5.12 0.27
Taiwan Weighted 8,080.60 175.5 2.22

Data Source: Ace Equity

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Markets through the day

3.30 pm: Domestic benchmark markets rose over 1.5 per cent on Friday and snapped a three-week losing streak as a rebound in commodity prices and Bank of Japan’s (BoJ) bold move to adopt negative interest rates to stimulate the Japanese economy stoked global risk appetite for equities. Sensex closed 401.12 points up at 24870.69, while Nifty settled 138.90 points up at 7,563.

3.22 pm: Wendt (India) has entered into agreement with Star Diamond Tools (Star) for acquisition of their Diamond Dresser Tool business on slump sale basis. The value of the transaction envisaged is approximately Rs 300 lakh and the conclusion of the transaction is subject to fulfillment of certain conditions in due course. Shares of Wendt were trading 1.09 per cent up at Rs 1805. Sensex was up 396 points at 24,866.

3.10 pm: Sensex was trading 407.15 points up at 24,876. Nifty was up 134.25 points at 7,558.90.

2.45 pm: European equities bounced back, tracking a strong rally in Asian shares after the Bank of Japan stunned markets by announcing negative interest rates in a bid to boost the economy. Sensex was up 333.76 points at 24,803.33.

2.19 pm: Sensex was trading 300.29 points up at 24,769. The broader indices were trading in green; the BSE Midcap index was up by 1.43 per cent, while Smallcap index up by 0.88 per cent.

2.06 pm: Buying activity picked up momentum largely in-line with a firm trend in other Asian bourses after Bank of Japan (BOJ) introduced negative interest rate regime at its policy meet in order to revive the ailing economy. Closer home, sentiments also got some boost after the fiscal deficit data for April-December 2015-16 have presented a better picture of the government’s finance compared to the corresponding period last year. The April-December fiscal gap stood at Rs 4.88 lakh crore as against Rs 5.32 lakh crore y-o-y. Appreciation in Indian rupee too aided sentiments. The rupee recovered 35 paise to 67.87 against the US dollar in noon deals at the Interbank Foreign Exchange market on fresh selling of the American currency by exporters.

1.42 pm: Sensex was up 314 points at 24,784. Nifty 50 index was trading 109 points up at 7,533. Shares of UPL Limited were quoting at Rs 424.65, up 3.45 per cent against its previous close. The scrip jumped after UPL reported 15 per cent rise in its Q3 consolidated net profit.

1.30 pm: Shares of Maruti Suzuki were trading 0.60 per cent down post Q3 results. Net profit of Maruti Suzuki rose 27 per cent year-on-year to Rs 1,019 crore but missed analysts’ bullish estimate of Rs 1,296 crore, according to Thomson Reuters data. Sensex was up 274 points at 24,744.

1.10 pm: India’s fiscal deficit was Rs 4.88 trillion ($71.90 billion) during April-December, or 87.9 per cent of the full-year target, government data showed on Friday. Sensex was trading 261.25 points up at 24,730.82, while NSE Nifty was trading 93.15 points at 7,517.80.

12.45 pm: Vedanta shares were trading 7.29 per cent up at Rs 72.15 post Q3 results. Sensex was trading 256.76 points up at 24,726.33, while NSE Nifty was trading 83.60 points up at 7,508.25.

12.28 pm: Sensex was up 269 points at 24,739. Nifty was up 90.25 points at 7,514. Crude oil futures traded higher on MCX as traders pinned their hopes on a potential deal between oil-producing nations to cut output and help combat a worsening supply glut. Russia said that OPEC’s largest producer Saudi Arabia, had proposed oil production cuts of up to 5 per cent in what would be the first global deal in over a decade to help clear a glut of crude and prop up sinking prices.

12.14 pm: Shares of Yes Bank jumped nearly 5 per cent after the private lender posted 25 per cent rise in its net profit figures for the third quarter ended December 2015. For the quarter ended December 2015, YES Bank posted net profit of Rs 675.74 crore against Rs 540.29 crore in the corresponding quarter a year ago.

11.41 am: NSE Nifty index reclaimed 7,500 mark for the first time since January 15 and was trading 76 points up at 7500.95. The BSE Sensex was trading 212 points up at 24,682.

11.23 am: Sensex jumped over 200 points to 24,671 in the late morning trade. Financial Technologies shares were trading 10 per cent up at Rs 106.60.

11.17 am: Benchmark index BSE Sensex recovered over 300 points from day’s low. The 30-share index opened at 24,347.31 and had touched a high and low of 24,663.03 and 24,340.06. Sensex was up 179 points at 24,648. Nifty was trading 60.20 points at 7,484.

11.07 am: The Bank of Japan on Friday introduced a negative interest policy in a move to boost a stumbling recovery in the world’s third-largest economy. Japan’s Nikkei 225 index was trading 1.83 per cent, or 314 points up, at 17,355.

11.04 am: Tara Jewels informed BSE that the management of the company has decided to re-strategise the domestic retail business to adapt to the current regulatory environment. In the medium-to-long-term the company proposes to continue to expand its retail footprint through the Shop-in-Shop model and explore options of the asset light franchise model. This strategy will help the company achieve faster expansion with lesser capital allocation. In this regard, Tara Jewels has relocated one of its shop-in-shop outlets from Bhopal to Mumbai, Andheri Shoppers Stop. Shares of Tara Jewels were trading 0.43 per cent up at Rs 47.10. Sensex was up 94.54 points at 24,564.11.

10.57 am: Idea Cellular, one of the biggest cellular carrier of the country, has rolled out fourth generation (4G) services in Bangalore and is planning a rapid expansion across Karnataka in cities such as Mangalore, Udupi-Manipal, Bijapur, Bellary and 18 more towns by the end of FY16. The company is also planning to launch 4G services in Maharashtra & Goa, North East and Orissa telecom circles by mid 2016. Shares of Idea Cellular were trading 0.05 per cent up at Rs 104.80.

10.54 am: Symphony on Thursday reported 32.51 per cent rise in its net profit at Rs 47.73 crore for the third quarter ended December 2015 as compared to Rs 36.02 crore for the same quarter in the previous year. Shares of Symphony were trading 0.23 per cent up at Rs 2,222.

10.52 am: Meanwhile, TVS Motor Company reported its results for third quarter ended December 31, 2015. The company reported 19.43 per cent rise in its net profit at Rs 107.70 crore for the third quarter as compared to Rs 90.18 crore for the same quarter in the previous year. The company’s total income increased by 11.58 per cent to Rs 2,951.36 crore for the quarter under review from Rs 2,645.13 crore for the corresponding quarter of the previous year. Shares of TVS Motor Company were trading 2.38 per cent down at Rs 284.70.

10.44 am: Brokers said build-up of bets following the beginning of the February futures and options (F&O) series led to the rebound. A firming trend at other Asian markets led by Japan after the Bank of Japan surprised markets by announcing a negative interest rate policy buoyed sentiment here too, they said. Sensex was trading 75.56 points up at 24,545.

10.37 am: Engineers India shares were trading 0.90 per cent down at Rs 192.30. The government on Thursday fixed the floor price of Rs 189 per share for selling its 10 per cent shareholding in Engineers India Ltd that would fetch it about Rs 637 crore. The floor price fixed for sale of 3.36 crore shares through an offer of sale (OFS) on January 29, is at a discount of 2.4 per cent to the closing price of Rs 194.05 on BSE on Thursday. Also Read: 3 Reasons why this brokerage house is bullish on Engineers India OFS

10.33 am: In the scrip specific development, ICICI Bank fell as much as 7 per cent on the BSE, after the bank disappointed on the asset quality front with the gross non-performing assets (NPA) ratio rose by 95 basis points quarter-on-quarter to 4.72 per cent, while the net NPA ratio rose by 63 basis points quarter-on-quarter to 2.28 per cent in December 2015 quarter (Q3FY16).

10.20 am: On the sectoral front, most of the indices on BSE were trading in green, with prominent gainers being the stocks from Consumer Durables, Metal, Oil & Gas, FMCG and Power counters. On the flip side, stocks from Bankex counter were the only loser of the session. Sensex was up 87 points at 24557. Nifty was up 31.15 points at 7,455.80.

10.01 am: According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net sellers of Rs 2,395.53 crore in index futures and options segments, as per Thursday’s data, January 28, 2016.

FIIs were net sellers of index futures to the tune of Rs 1,597.81 crore and they sold index options worth Rs 797.72 crore. In the stock segment, FII’s were net buyers of stock futures worth Rs 386.54 crore, while they bought stock options worth Rs 128.98 crore.

9.58 am: In the 50-share index, Vedanta, Coal India, Sun Pharma, GAIL and ONGC were up between 1.85 per cent and 5.75 per cent. On the other hand, Bank of Baroda, ICICI Bank, State Bank of India, Maruti Suzuki and Axis Bank were down between 2.15 per cent and 4.40 per cent. NSE Nifty index was up 33.25 points at 7,457.90.

9.48 am: The rupee recovered 26 paise to 67.97 against the US dollar in early trade today at the Interbank Foreign Exchange market on fresh selling of the American currency by exporters. Sensex was up 109 points at 24,579.

9.25 am: Sensex was up 110 points at 24,579. Nifty was up 37.35 points at 7,462. Financial Technologies (India) (FTIL) – wholly owned subsidiary – FT Group Investments, Mauritius (FTGIPL), has entered into a Share Purchase Agreement (SPA) with Dubai Multi Commodities Centre (DMCC), for sale of its 14.3 per cent stake held in DGCX for an aggregate consideration of $5,775,000. Shares of Financial Technologies were trading nearly 13 per cent up at Rs 108.80.

9.15 am: Nifty opened 11.30 points down at 7,413.35. Sensex opened 122.26 points down at 24,347.31. ICICI Bank shares were trading over 4.5 per cent down at 221.60. I

8.49 am: The BSE Sensex and NSE Nifty are likely to open on a flat-to-cautious note on the last day of week tracking SGX Nifty and mixed global markets.

At 8.27 am (IST), SGX Nifty was down 7 points, or 0.09 per cent, at 7,424.50.

Asian shares crept cautiously higher on Friday as oil cobbled together another session of gains and markets wagered US interest rates would not be rising much this year, if at all. Hang Seng and Shanghai Composite Index were trading 1.12 per cent and 2.38 per cent up at 19,414 and 2718.69, respectively. However, Japan’s Nikkei 225 index was trading 0.52 per cent down at 16,953.09.

On Wall Street, the Dow gained 0.79 per cent on Thursday, while the S&P 500 added 0.55 per cent and the Nasdaq Composite 0.86 per cent.

Domestic benchmark indices snapped a three-day winning momentum on Thursday as Sensex slipped
almost 23 points to end at 24,469.57 due to across-the-board sell-off and monthly derivatives expiry. The Nifty 50 index ended lower by 13.10 points, or 0.18 per cent, at 7,424.65.

Shares of Bharti Airtel and ICICI Bank will remain in focus on Friday. The telecom major on Thursday after market hours posted an over 22 per cent fall in its net profit at Rs 1,117 crore for October-December, dragged down by higher finance costs and charges for network upgradation as also the restructuring activities in some countries. The company had registered a net profit of Rs 1,436 crore in the corresponding quarter last fiscal. Also, Axiata Group Bhd, Malaysia’s largest mobile operator by market value, and Bharti Airtel agreed to merge their subsidiaries in Bangladesh.

ICICI Bank on Thursday reported 4.47 per cent year-on-year jump in net profit figures to Rs 3,018.13 crore for the quarter ended December 2015. The bank had posted net profit of Rs 2,889.04 crore in the corresponding quarter a year ago. Bad loans of ICICI Bank rose 4.72 per cent in December quarter versus 3.77 per cent in the sequential quarter ended September 2015.

Astec, Astra Micro, Gabriel, NTPC, Larsen & Turbo, JSW Steel, TVS Motor, Suzlon, Siemens, Yes Bank and Wabco India to announce their results on Friday.

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