Indian shares rose today but ended off day’s high, supported by strong gains in heavyweight Reliance Industries. Benchmark index Sensex ended 192 points higher at 36,578 though at its day’s high it had risen to36,701. On the NSE, the Nifty50 index settled 0.50% higher at 10,961. Oil-to-retail conglomerate Reliance Industries 4.4% in its second session of gains after reporting record quarterly numbers.
Other top gainers in the Sensex 30 pack included Kotak Mahindra Bank, Sun Pharma, and Bajaj Finance. IT stocks TCS and Infosys were also among the gainers.
Sun Pharma, which had tumbled over 14% last week on reports of a fresh whistleblower complaint, rose 2%.
Sensex rises nearly 200 points, led by RIL
“The market momentum has continued into this week,” said Siddhartha Khemka, head of retail research at Motilal Oswal Securities. “Stocks, especially heavyweights, have gained on the back of last week’s good quarterly numbers, and that has buoyed the sentiment.”
SBI, Bajaj Auto, Power Grid, Maruti, Yes Bank and Hero MotoCorp were among the top losers in the Sensex 30 pack.
(With Agency Inputs)
RIL gains 4.5%
Reliance Industries, India’s biggest company by market value, led the gains, ending up 4.5 percent at its best closing level since Sept. 28. This is the stock’s second straight session of gains after reporting record quarterly results.
Kotak Mahindra Bank closed up 2.2 percent after posting a 23 percent rise in third-quarter net profit.
Sun Pharma shares surge 4% in morning trade
Shares of Sun Pharmaceutical Industries Monday surged 4 per cent in opening trade on the bourses after it sought intervention from market regulator Sebi, alleging unfair biz practices against the company.
This is the first uptick in the counter after two successive sessions of beating, wherein the stock lost as much as 13.80 per cent.
The stock opened on a strong note at ₹390.90, then gained further ground and touched an intra-day high of ₹406.35, up 3.99 per cent from its previous close.
At the National Stock Exchange (NSE), shares of the company opened at ₹390.10, then jumped 4.04 per cent over its last close to ₹406.55.
The stock was the second largest gainer among the Sensex pack after Reliance Industries.
Against the backdrop of reports that a second whistleblower complaint has been filed against it and shares taking a beating on the exchanges, Sun Pharma has written to Sebi flagging concerns that certain entities are allegedly adopting unfair trade practices.
In a letter to Sebi Chairman Ajay Tyagi, the Mumbai-based drug maker said it has come to know from a media report that a second whistleblower complaint has been filed against the company.
“We are concerned that certain entities/individuals are adopting unfair trade practices prejudicial to the interest of shareholders and other stakeholders,” the company said in the letter, a copy of which has been submitted to the stock exchanges.
In a clarification to BSE, the company said it has not received the alleged “172-page whistleblower complaint” and therefore it is not privy to the contents of the document being referred to in the said media article.
“Hence, we cannot comment on the points being raised in the said media article,” it said. (PTI)
L&T shares fall over 3% after Sebi denies buyback
Shares of Larsen and Toubro Monday slumped over 3 per cent in opening trade after market regulator Sebi denied permission for its ₹9,000 crore share buyback offer.
In a regulatory filing to stock exchanges, L&T Saturday said Securities and Exchange Board of India (Sebi) has asked it not to proceed with the buyback.
“Since the ratio of the aggregate of secured and unsecured debts owed by the company after buy-back (assuming full acceptance) would be more than twice the paid-up capital and free reserves of the company based on consolidated financial statements”, the buyback offer is not in compliance with the Companies Act and Sebi norms, the regulator said in a letter to the company.
Reacting to the development shares of the company opened on a weak note at ₹1,275, then fell further to ₹1,275, down 3.28 per cent over its previous closing price.
“We estimate that the scrapping of the buyback could impact our return on equity (ROE) estimates by 150-165 basis point over FY20/21F,” Japanese brokerage major Nomura said in a research note.
The shares witnessed a similar trend on the NSE as well, where the stock opened at ₹1,279, then touched a low of ₹1,273.45, down 3.37 per cent over its last close.
L&T had proposed to buy back up to 6.1 crore shares from shareholders at a price of ₹1,475 per equity share, aggregating to ₹9,000 crore. The offer was open to those holding equity shares as on October 15.
A buyback reduces the number of shares available in the open market. (PTI)
Shares of HDFC Bank jump nearly 2% post Q3 results
Shares of HDFC Bank jumped nearly 2% after the private sector lender reported 20 per cent rise in net profit in December 2018 quarter.
The private sector lender Saturday reported 20.3 per cent growth in net profit to ₹5,585.9 crore for the third quarter ended December 31, mainly on account of higher net interest income.
The bank had posted a net profit of ₹4,642.6 crore in the October-December quarter of 2017-18.
Shares of HDFC Bank opened at ₹2,149, then surged further to₹2,165, registering a jump of 1.58 per cent over its last close.
Similar movement was seen on NSE, where the stock opened at₹2,139.95, then touched an intra-day high of ₹2,166.50, up 1.70 per cent over its previous closing price.
Earnings, global cues to dictate market trend: Experts
The ongoing corporate results season, movement of the rupee and global cues will set the tone for the domestic equity markets this week, experts said.
“The market will closely watch supervision and management commentary of the companies coming out with their earnings,” said Mustafa Nadeem, CEO, Epic Research.
Indices may also react to results posted over the weekend. Wipro announced its results after market hours Friday, while HDFC Bank Saturday reported a 20.3 per cent growth in net profit to ₹5,585.9 crore for the December quarter. Kotak Mahindra Bank, InterGlobe Aviation, Bank of Maharashtra, Yes Bank and Maruti Suzuki India are among the major companies set to announce their results this week.
“In terms of Q3 results, most IT companies have beaten the estimates in terms of topline growth. Also, the commentary from IT companies management has been positive, so the momentum in topline growth is likely to continue albeit, at the cost of margins.
“Other Nifty companies that reported results this week also have seen a neutral to positive reaction by the analysts, indicating that the start of the results season has been positive,” said Viral Berawala, CIO, Essel Mutual Fund.
According to analysts, global trade issues would also impact the trend, while lack of major triggers in the domestic market could see range-bound movement in the near term.
Also, trend in crude oil prices, rupee movement and investment pattern by overseas investors would influence trading sentiment, they added. (PTI)
RIL up 3%
Oil-to-retail conglomerate Reliance Industries climbed 3.2 percent to its highest since Oct. 3 in its second session of gains after reporting record quarterly numbers.
The stock accounted for the biggest share of gains in the indexes.
Oil rises to 2019 highs
Oil prices rose to their highest for 2019 on Monday after data showed refinery processing in China, the world’s second-largest oil consumer, climbed to a record in 2018, despite a slowing economy last year.
Prices are further being supported by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC), analysts said.
International Brent crude oil futures were at $62.94 per barrel at 0404 GMT, up 24 cents, or 0.4 percent, from their last close. Brent earlier rose above $63 for the first time in 2019.
U.S. West Texas Intermediate (WTI) crude futures were at $54.05 a barrel, up 25 cents, or 0.5 percent. It was the first time this year that WTI rose above $54 a barrel.
NTPC gains after bonus share announcement
NTPC Ltd rose 1.1% to ₹146 after the company said it would consider bonus shares. Wipro Ltd fell 2.7% to ₹337. The infotech major on Friday posted a strong 31.8% year-on-year jump in consolidated net profit at ₹2,544.5 crore for October-December 2018, and announced a 1:3 bonus share offer.
Domestic investors encouraged after Q3 earnings
Brokers said, besides sustained buying by domestic investors on encouraging Q3 earnings from bluechip companies, a firming trend at other Asian markets on easing of US-China trade tensions, dovish commentary form the Federal Reserve and efforts in China to support the slowing economy, influenced trading sentiments here.
Meanwhile, domestic institutional investors (DIIs) sold shares worth a net of ₹124.91 crore, while foreign institutional investors (FIIs) offloaded shares to the tune of ₹97 crore on Friday, as per provisional data.
L&T opens 1.7% lower after Sebi nixes buyback
Larsen & Toubro Ltd fell 1.7% to ₹1,291 after Sebi denied the company permission for its proposed share buyback plan of₹9,000 crore. DCB Bank Ltd fell 3.1% to ₹179.45 after Business Line reported that the Serious Fraud Investigation Office (SFIO) had sought the cancellation of the banking licence of DCB Bank for its role in the National Spot Exchange Limited (NSEL) scam.