Key equity barometers ended near the flat line after a volatile session on Friday. The Nifty ended a tad above the 12,350 level. Main indices were impacted by the Supreme Court verdict on adjusted gross revenue (AGR) dues on the telecom sector. Broader market, however, extended recent uptrend.

The barometer BSE S&P Sensex rose 12.81 points or 0.03% to 41,945.37. The Nifty 50 index lost 3.15 points or 0.03% to 12,352.35.

In the broader market, the S&P BSE Mid-Cap index rose 0.54% while the S&P BSE Small-Cap index gained 0.42%. Both these indices outperformed the Sensex.

The market breadth favored the buyers. On the BSE, 1,331 shares rose and 1,210 shares fell. A total of 175 shares were unchanged.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.62% at 16:30 IST compared with 6.598% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.075, compared with its close of 70.93 during the previous trading session.

In the commodities market, Brent crude for March 2020 settlement rose 38 cents to $65 a barrel. The contract rose 0.97% to settle at $64.62 a barrel during the previous trading session.

Foreign Markets:

Shares in Europe and Asia edged higher on Friday after Wall Street posted more records, with strong corporate earnings and upbeat US economic data adding to optimism after China and the US signed a partial trade deal.

In US, stocks rallied again on Thursday, with all three benchmark indexes closing at new records, following the signing of a trade truce between the US and China on Wednesday and Senate approval of a new trade deal between the US, Mexico and Canada on Thursday.

Buzzing Indian Sectors:

The S&P BSE Telecom index rose 1.49% at 1,159.57. Vodafone Idea (down 25.21%) and Bharti Infratel (down 10.11%) slumped. Telecom major Bharti Airtel jumped 5.47%.

Index major Reliance Industries, which owns Reliance Jio, rose 2.79%. RIL will announce Q3 results today, 17 January.

The Supreme Court on Thursday dismissed pleas filed by Bharti Airtel and Vodafone Idea to review its earlier judgment that had asked telecom operators to pay their outstanding dues to the government. The review petitions were filed to seek relief on interest and penalty payments in connection to the verdict on AGR. The deadline for telecom companies to meet the license fee dues as per the apex court's AGR judgement is 23 January 2020.

According to reports, Vodafone Idea and Bharti Airtel are likely to file curative petitions, besides applying to the court for more time to make the payments, a combined Rs 89,000 crore for the two.

Supreme Court in October 2019 had ruled in favor of the government on the AGR issue. AGR is the basis on which DoT calculates levies payable by operators. Telecom operators are liable to pay around 3-5% and 8% of the AGR as spectrum usage charges and licence fees, respectively, to DoT.

Telcos argued that AGR should comprise revenue from telecom services, but DoT insisting that AGR should include all revenue earned by an operator, including that from non-core telecom operations.

The Nifty Bank index fell 0.83% to 31,590.65. Some banks have substantial exposure to the telecom sector and the SC verdict has raised fresh concerns over these lenders' asset quality.

Among private sector banks, IndusInd Bank (down 2.46%), Yes Bank (down 1.75%), Federal Bank (down 1.4%), ICICI Bank (down 1.14%), HDFC Bank (down 0.76%), RBL Bank (down 0.71%) and Kotak Mahindra Bank (down 0.11%) declined.

Among public sector banks, State Bank of India (down 1.62%), Corporation Bank (down 1.23%), United Bank of India (down 1.21%), Punjab & Sind Bank (down 1.2%), Central Bank (down 0.83%), IDBI Bank (down 0.69%), Bank of India (down 0.65%), Indian Bank (down 0.34%), Bank of Baroda (down 0.31%), Union Bank of India (down 0.28%), Allahabad Bank (down 0.27%) and Punjab National Bank (down 0.24%) declined.

Q3 2019 Results:

TCS fell 0.91%. The IT major unveiled Q3 results after trading hours today, 17 January 2020. Consolidated net profit rose 0.95% to Rs 8,118 crore on 2.25% increase in net sales to Rs 39,854 crore in Q3 December 2019 over Q2 September 2019.

TCS reported 0.20% year-on-year rise in profit compared with Rs 8,105 crore net profit reported for the same quarter last year. Revenue for the quarter rose 6.7% compared with Rs 37,338 crore in the year-ago period. The IT firm announced an interim dividend of Rs 5 per share for the quarter.

Commenting on the Q3 performance, Rajesh Gopinathan, chief executive officer and managing director, said: We saw the sectoral trends of the first half of the year continue to play out in the third quarter. Our robust order book during the quarter reflects our ability to pitch innovative technology solutions to address the business needs of different stakeholders in the enterprise, and participate in our customers' enterprise-wide transformation initiatives. This is also helping deepen and broaden our customer relationships, and make the business more resilient.

HCL Technologies rose 0.91%. The IT firm disclosed Q3 results after trading hours today, 17 January 2020. The company reported 16.31% year-on-year (YoY) rise in consolidated profit at Rs 3,037 crore in Q3 December 2019. Revenue increased 15.5% to Rs 18,135 crore during the quarter under review. EBITDA jumped 22.60% to Rs 4,470 crore YoY. EBIT margin stood at 20.20% in Q3FY20 against 19.60% in corresponding quarter period last year.

On a quarter-on-quarter (QoQ) basis, HCL Tech net income rose 14.6% while revenues rose 3.5%. EBITDA rose 8.9% over Q2 September 2019. The board of the IT firm declared an interim dividend of Rs 2 per share.

The company sees revenue growth between 16.5% and 17% in constant currency terms in FY20, while operating margin will be in the range of 19-19.50%.

Rallis India surged 14.16% after consolidated net profit surged 176.52% to Rs 38.05 crore on 27.85% rise in net sales to Rs 533.60 crore in Q3 December 2019 as against Q3 December 2018. Consolidated profit before tax climbed 146.05% to Rs 48.30 crore in Q3 December 2019 over Rs 19.63 crore in Q3 December 2019. The result was announced after trading hours yesterday, 16 January 2020.

Shares of Cyient advanced 0.58%. The IT firm reported a 10.35% rise in its consolidated net profit to Rs 107.60 crore in Q3 December 2019. Revenue from operations declined 4.57% to Rs 1,105.90 crore in Q3 December 2019 as against Q2 September 2019.

Karnataka Bank declined 4.59% to Rs 74.85 after net profit fell 12.3% to Rs 123.14 crore on 11.4% rise in total income to Rs 2,023.68 crore in Q3 December 2019 over Q3 December 2018. PBT (profit before tax) fell 2.2% to Rs 187.09 crore in Q3 December 2019 as against Rs 191.38 crore in Q3 December 2018. The Q3 earnings was declared after market hours yesterday, 16 January 2020.

South Indian Bank fell 1.26% after profit before tax (PBT) fell 5.2% to Rs 122.20 crore in Q3 December 2019 from Rs 128.89 crore in Q3 December 2019. Net profit rose 8% to Rs 90.54 crore in Q3 December 2019 over Q3 December 2018. Tax expenses fell 29.71% to Rs 31.66 during the period under review. Total income rose 13.8% to Rs 2187.73 crore in Q3 December 2019 as compared to Rs 1921.93 crore reported in the corresponding period last fiscal.

Tata Metaliks lost 1.43%. On consolidated basis, the company's net profit rose 7.4% to Rs 21.73 crore on a 1.4% decline in net sales to Rs 321.48 crore in Q3 December 2019 over Q3 December 2018. Profit Before Tax (PBT) stood at Rs 29.40 crore in Q3 2019 as against Rs 28.16 crore in Q3 2018, registering a rise of 4.4% YoY basis.

Stocks in Spotlight:

Piramal Enterprises (PEL) surged 5.18%. The company said its wholly-owned subsidiary, PEL DRG Dutch HoldCo BV, will sell its healthcare insights and analytics business to NYSE-listed Clarivate Analytics Plc for $950 million. The deal includes $900 million on closing and $50 million to be received at the end of 12 months thereon. The transaction is subject to shareholder approval and is expected to be completed by end of next month, PEL said in a release.

Jay Shree Tea & Industries surged 6.41% after the company decided to sell stake in two of its tea estates in Africa. The company has entered into a definitive agreement with Grand Lacs Trading SA, Belgium, to sale stake in Mata and Gisakura tea estates in Rwanda. The sale is expected to be completed by 14 February 2020.

Key equity market barometers ended with minor gains after a see-saw session on Thursday. Trading was volatile on account of weekly index options expiry on the NSE. Investors booked some profits after the US and China signed a preliminary trade agreement on Wednesday, expectations for which had driven global equities to record highs.

The barometer BSE S&P Sensex rose 59.83 points or 0.14% to 41,932.56. The index rose 186.72 points, or 0.45% at the day's high of 42,059.45 in early trade, its record high. It fell 60.45 points, or 0.14% at the day's low of 41,812.28 in mid-morning trade.

The Nifty 50 index gained 12.95 points or 0.09% to 12,356.25. The index rose 45.75 points, or 0.37% at the day's high of 12,389.05, its record high. It fell 27.50 points, or 0.22% at the day's low of 12,315.80.

In the broader market, the BSE Mid-Cap index rose 0.77% and the BSE Small-Cap index rose 0.78%. Both these indices outperformed the Sensex.

The market breadth was positive. On the BSE, 1488 shares rose and 1065 shares fell. A total of 183 shares were unchanged.

Economy:

India's trade deficit narrowed 22.3% to $11.25 billion in December 2019 from $14.49 billion in the same month a year ago. Imports fell 8.8% year-on-year to $38.61 billion, the 7th straight drop. Exports fell 1.8% year-on-year to $27.36 billion, the 5th straight annual fall.

In April-December, the trade deficit narrowed sharply to $118.10 billion from $148.23 billion the same period in the previous fiscal year, the Ministry of Commerce & Industry said in a statement on Wednesday, 15 January 2020.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.613% at 16:45 IST compared with 6.623% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 70.985, compared with its close of 70.82 during the previous trading session.

In the commodities market, Brent crude for March 2020 settlement rose 28 cents to $64.28 a barrel. The contract fell 49 cents or 0.76% to settle at $64 a barrel during the previous trading session.

Foreign Markets:

Most European shares declined while most Asian markets ended higher on Thursday. President Donald Trump signed an initial phase one trade deal with China on Wednesday that will roll back some of the tariffs on one another's goods and increase Chinese purchases of U.S. products. Investors were still concerned as many of the key structural issues at the crust of the trade conflict remain unresolved as the two sides enter phase two.

In US, stock indexes closed higher on Wednesday afternoon, though the major benchmarks ended the day well off session highs, after President Donald Trump signed the first phase of a trade pact with China, marking a truce in the dispute over import tariffs which has unsettled markets world-wide and slower economic growth.

All three major benchmarks set record intraday highs, while the Dow and S&P 500 ended the session at record closing levels.

In economic data, US wholesale inflation rose 0.1% in December, according to the Labor Department's producer-price index. Year over year, producer prices rose just 1.3%, roughly half the rate in 2018.

Buzzing Indian Index:

The Nifty Metal index fell 1.32% to 2,884.85 on profit booking. The index rose 5.57% in the previous five trading sessions.

JSW Steel (down 2.23%), Hindalco Industries (down 1.92%), NALCO (down 1.76%), Tata Steel (down 1.54%), Vedanta (down 1.46%), Sail (down 1.17%), Jindal Steel & Power (down 0.69%) and NMDC (down 0.42%) declined. Hindustan Copper (up 0.96%) and Hindustan Zinc (up 0.28%), advanced.

Q3 Earnings:

Tinplate Company of India rose 2.88% after standalone net profit surged 198.9% to Rs 46.45 crore in Q3 December 2019 as against Rs 15.54 in Q3 December 2018. Profit before tax (PBT) rose 10.5% to Rs 29.45 crore in Q3 December 2019 from Rs 26.65 crore in Q3 December 2018. Net sales fell 14.1% to Rs 494.69 crore in Q3 December 2019 from Rs 576.19 crore in Q3 December 2018. Net profit surged on account of lower expenditures and taxes. Total expenditure shrunk 16.6% to Rs 492.69 crore in Q3 December 2019 over Q3 December 2018, mainly on account of falling raw materials costs.

Den Networks rose 1.27%. The cable TV and broadband service provider reported a consolidated net profit of Rs 19.36 crore in Q3 December 2019 compared with net loss of Rs 32.38 crore in Q3 December 2018. Consolidated profit before tax (PBT) stood at Rs 39.10 crore in Q3 December 2019 as against a loss of Rs 26.45 crore in Q3 December 2018. Net sales rose 3.1% to Rs 318.08 crore in Q3 December 2019 over Q3 December 2018. The Q3 result was declared after trading hours yesterday, 15 January 2020.

Sterlite Technologies fell 4.69% after net profit declined 63.85% to Rs 52.63 crore on 9.9% fall in net sales to Rs 1202.66 crore in Q3 December 2019 over Q3 December 2018. EBITDA fell 18.75% to Rs 247 crore in Q3 December 2019 as against Rs 304 crore in Q3 December 2018. The result was announced after market hours yesterday, 15 January 2020.

Reliance Industrial Infrastructure fell 0.86%. after consolidated profit before tax fell 16.8% to Rs 2.68 crore in Q3 December 2019 over Q3 December 2018. Consolidated net profit jumped 12.8% to Rs 2.46 crore on 5.7% decline in net sales to Rs 19.98 crore in Q3 December 2019 over Q3 December 2018. Tax expense slumped 46.7% to Rs 0.98 crore in Q3 December 2019 over Q3 December 2018. The Q3 result was announced after market hours yesterday, 15 January 2020.

Stocks in Spotlight:

Bharti Airtel advanced 1.34% to Rs 474 after the company said it has raised $2 billion through the QIP route, which saw participation by highly reputed global and Indian investors. The company will issue 32,35,95,505 equity shares of face value of Rs 5 per equity share at Rs 445. Post the QIP issue, the holding of promoter and promoter group will be 58.98% as against 62.70%.

Granules India surged 5.46%. The company's board will meet on 21 January 2020 to consider a proposal for buyback of equity shares.

Dishman Carbogen Amcis hit 5% upper circuit at Rs 88.95 ahead of the company's board meeting scheduled today, 16 January 2020, to consider buyback of shares.

Asian Paints fell 0.37% to Rs 1834.95 after the Competition Commission of India (CCI) ordered a probe against the company for unfair business practices. CCI ordered a probe against Asian Paints allegedly hindering the entry of JSW Paints by virtue of its dominance in the market for manufacture and sale of decorative paints. The order came after JSW Paints filed a complaint alleging that Asian Paints threatened various dealers in Karnataka, Telangana and Tamil Nadu from dealing with JSW Paints.

Alphageo (India) hit 10% upper circuit at Rs 201.45. The company has bagged two orders worth Rs 112 crore from ONGC.

Wockhardt jumped 5.71%. Indian drug regulator, DCGI, has approved Wockhardt's two new antibiotics, EMROK (IV) and EMROK 0 (Oral), for acute bacterial skin and skin structure Infections including diabetic foot infections and concurrent bacteraemia based on the Phase 3 study involving 500 patients in 40 centres across India. The new drug will target superbug like Methicillin resistant Staphylococcus aureus (MRSA), which is a leading cause of rising antimicrobial resistance (AMR). The statement was released during market hours today, 16 January 2020.

Camlin Fine Sciences was locked in a lower circuit of 5% at Rs 78.95 after the company said its manufacturing unit in Tarapur received closure notice from Maharashtra Pollution Control Board. The closure will be enforced within 72 hours from receipt of the closure direction on 15 January 2020. The direction was issued on account of certain alleged irregularities by the company in complying with Maharashtra Pollution Control Board (MPCB)'s terms and conditions.

Key barometers snapped four-day rising streak on Wednesday, as weak global cues triggered profit selling in the domestic market. Selling in private banks put pressure on indices, while strength in auto shares provided supported.

Global stock markets came under selling pressure after US Treasury Secretary said that the United States would continue tariffs on Chinese goods until the completion of a second phase of a US-China trade agreement.

The Sensex and the Nifty opened lower and hit fresh intraday low in afternoon trade. Both the indices sharply pared losses in late trade as buying emerged at lower levels.

The barometer BSE S&P Sensex fell 79.90 points or 0.19% to 41,872.73. The index fell 304.52 points, or 0.73% to hit the day's low of 41,648.11 in afternoon trade.

The Nifty 50 index fell 19 points or 0.15% to 12,343.30. The index fell 83.55 points, or 0.68% to hit the day's low of 12,278.75 in afternoon trade.

In the broader market, the BSE Mid-Cap index rose 0.66% and the BSE Small-Cap index rose 1.04%. Both these indices outperformed the main stock indices.

The market breadth was positive. On the BSE, 1483 shares rose and 1046 shares fell. A total of 183 shares were unchanged.

In the past four trading sessions, the Sensex rose 2.78% and the Nifty advanced 2.80%.

Economy:

The government will release India's trade data for December 2019 at 18:00 IST today, 15 Wednesday 2019.

India's trade deficit narrowed to $12.12 billion in November 2019 from $17.58 billion in the same month a year ago, as imports slumped 12.71% to $38.11 billion. Exports fell 0.34% to $25.98 billion.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.63% at 16:45 IST compared with 6.662% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 70.8375, compared with its close of 70.8775 during the previous trading session.

In the commodities market, Brent crude for March 2020 settlement fell 16 cents to $64.33 a barrel. The contract rose 29 cents or 0.45% to settle at $64.49 a barrel during the previous trading session.

Foreign Markets:

Most European shares were trading lower while Asian stocks fell across the board on Wednesday as investors awaited the signing of an initial US-China trade deal, with sentiment somewhat dented by comments from the US Treasury Secretary.

The United States will maintain tariffs on Chinese goods until the completion of a second phase of a U.S.-China trade agreement, US Treasury Secretary Steven Mnuchin said on Tuesday, a day before the two sides are to sign an interim deal. If the president gets a Phase 2 in place quickly, he'll consider releasing tariffs as part of Phase 2, Mnuchin reportedly said.

Trump is slated to sign the Phase 1 trade agreement with Chinese Vice Premier Liu He at the White House on Wednesday at 22:00 IST (1630 GMT). All aspects of the Phase 1 trade deal with China would be made public on Wednesday, except a confidential annex that will detail US products and services to be purchased by China.

In US, stocks posted a mixed finish on Tuesday as doubts about the extent of import tariff reductions in a trade deal with China saw equities retreat from fresh intraday records for the benchmark indexes.

Buzzing Indian Indices:

The Nifty Private Bank index fell 0.87% to 17,572.30. The index has fallen 1.34% in two trading sessions.

RBL Bank (down 1.98%), HDFC Bank (down 0.42%), ICICI Bank (down 0.38%), Federal Bank (down 0.27%) and Axis Bank (down 0.2%) declined. Kotak Mahindra Bank (up 0.01%) and City Union Bank (up 3.28%) advanced.

Yes Bank rose 3.24% on bargain hunting after a steep selling in the past three sessions. Shares of Yes Bank tumbled 18.50% in three sessions to Rs 38.55 on 14 January 2020, from its closing high of Rs 47.30 on 9 January 2020.

The bank announced post trading hours on Tuesday, 14 January 2020, that it will hold extraordinary general meeting on 7 February to seek shareholders' nod to raise Rs 10,000 crore via combination of equity and debt.

Meanwhile, Yes Bank after market hours on Tuesday, 14 January 2020, said that it acquired 12,73,21,500 equity shares, or 29.97% equity, of Rosa Power Supply Company, a wholly owned subsidiary of Reliance Power, pursuant to invocation of pledge of shares.

The Rosa thermal plant (1,200 MW) at Shahjahanpur in Uttar Pradesh, owned by the Rosa Power Supply Company generated 4341 million units in the year ended 31 March 2019.

IndusInd Bank fell 5.44% to Rs 1400.60, extending losses for second consecutive session as spike in provisions and worsening asset quality concerned investors.

IndusInd Bank said its net profit rose 32% Rs 1300.20 crore in Q3 December 2019 from Rs 985.03 crore in Q3 December 2018. The bank's net interest income jumped 34.35% year-on-year (YoY) to Rs 3074 crore in Q3 December 2019.

Employee costs jumped 21.69% to Rs 550.10 crore YoY. The bank's provisions and contingencies (excluding tax provisions) jumped 72% to Rs 1043.45 crore in Q3 December 2019 over Q3 December 2018. The figure rose 41.44% in Q3 December 2019 compared with Rs 737.71 in Q2 September 2019.

The result was announced during market hours yesterday, 14 January 2020. Following the result announcement, the stock fell 3.85% to end at Rs 1,481.10 on Tuesday.

The Nifty Auto index rose 1.16% to 8,385.35. The index has risen 5.57% in five trading sessions.

TVS Motor (up 3.74%), Hero MotoCorp (up 2.58%), Tata Motors (up 2.32%), Ashok Leyland (up 1.35%), Maruti Suzuki India (up 1.27%), Mahindra & Mahindra (up 1.03%), Bajaj Auto (up 0.76%), Eicher Motors (up 0.63%) and Escorts (up 0.42%) advanced.

Q3 Earnings:

Wipro fell 3.50%. On consolidated basis, the IT major reported 3.79% decline in net profit to Rs 2,455.90 crore on 2.28% increase in revenue to Rs 15,470.50 crore in Q3 December 2019 over Q2 September 2019. IT services segment revenue rose 3.03% to Rs 15,100.60 crore crore in Q3 December 2019 over Q2 September 2019. In dollar terms, IT services segment revenue was at $2,094.8 million, a sequential growth of 2.2%.

The company expects revenue from IT services business to be in the range of $2,095 million to $2,137 million. This translates to a sequential growth of 0.0% to 2.0%.

Mindtree jumped 2.26% after consolidated net profit rose 45.92% to Rs 197 crore on 2.66% increase in revenue to Rs 1,965.30 crore in Q3 December 2019 over Q2 September 2019. Among verticals, while hi-tech and media grew by 15.2% on a year-on-year basis, banking, financial services and insurance (BFSI) rose by 7.7% during the quarter. The digital business moved up by 3.5% year-on-year in this period. The result was declared after market hours yesterday, 14 January 2020.

Tata Steel BSL added 0.16% after the company reported a consolidated net loss of Rs 501.50 crore in Q3 December 2019 as against a net loss of Rs 239.67 crore in Q3 December 2018. Net sales rose 1.82 to Rs 4736.78 crore in Q3 December 2019 from Rs 4652.16 crore recorded in Q3 December 2018. The result was announced after market hours yesterday, 14 January 2020.

Larsen & Toubro Infotech advanced 2.38% after consolidated net profit rose 4.6% to Rs 376.70 crore on 9.4% increase in revenue to Rs 2811.10 crore in Q3 December 2019 over Q2 September 2019. On year-on-year (YoY) basis, consolidated net profit inched up 0.32% while revenue expanded 13.68%. The result was announced during market hours today, 15 January 2020.

EBITDA grew 13.3% on quarter-on-quarter (QoQ) basis and 3.7% on year-on-year (YoY) basis to Rs 527.7 crore in Q3 December 2019. EBITDA margin rose to 18.8% in Q3 December 2019 compared with 18.1% Q2 September 2019.

Stocks in Spotlight:

Shares of Canara Bank rose 1.23% while those of Can Fin Homes fell 2.83%. Canara Bank called-off the proposed divestment of its entire 30% stake in its housing finance subsidiary, Can Fin Homes, which was under progress.

Larsen & Toubro (L&T) slipped 0.18%. The company said it won 'large' orders from various business across the country. L&T classifies large orders between value of Rs 2500 crore and Rs 5000 crore.

Sun Pharmaceutical Industries rose 0.55%. The drug major and Rockwell Medical entered into a licensing agreement for commercializing Triferic, a proprietary iron replacement and haemoglobin maintenance drug, for treating anaemia in hemodialysis patients in India.

Capacite Infraprojects gained 0.98%. The construction company has received order from integrated unit (P.W ) division for a contract value of Rs 407.16 crore for construction of multi-storey super specialty hospital building at Sir J J Hospital Campus on EPC (engineering, procurement and construction) mode at Byculla in Mumbai.

Key benchmark indices ended at record closing high on Tuesday, but gains were limited as surge in domestic inflation numbers dashed hopes of further monetary easing by the central bank. The broader market, however, ended firm amid positive global cues.

The barometer BSE S&P Sensex rose 92.94 points or 0.22% to 41,952.63, its record closing high. The index hit a record high of 41,994.26 in intraday today.

The Nifty 50 index gained 32.75 points or 0.27% to 12,362.30, its record closing high. The index hit a record high of 12,374.25 in intraday today.

In the broader market, the BSE Mid-Cap index rose 0.75% and the BSE Small-Cap index rose 0.71%. Both these indices outperformed the Sensex.

The market breadth was positive. On the BSE, 1468 shares rose and 1037 shares fell. A total of 154 shares were unchanged.

Economy:

India's inflation, based on monthly Wholesale Price Index (WPI), increased by 2.59% year-on-year in December 2019, accelerating from 0.58% in November and 3.46% in December 2018. It was the highest wholesale inflation rate since May 2019, amid a faster rise in cost of vegetables, while crude oil prices remained firm.

Meanwhile, the all-India general CPI inflation jumped to 7.35% in December 2019, compared with 5.54% in November 2019. The inflation accelerated for the fifth straight month, remaining the highest rate since July 2016. Main upward pressure came from cost of food and beverages (12.16%), namely cereals (4.36%), milk (4.22%), vegetables (60.5%), fruits (4.55%) and pulses (15.44%). The food price index alone jumped to 14.12%, the highest since November 2013.

The corresponding provisional inflation rate for rural area was 7.26% and urban area 7.46% in December 2019 as against 5.27% and 5.76% in November 2019.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 6.658% at 16:45 IST compared with 6.592% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 70.895, compared with its close of 70.8650 during the previous trading session.

In the commodities market, Brent crude for March 2020 settlement rose 36 cents to $64.56 a barrel. The contract fell 78 cents or 1.20% to settle at $64.20 a barrel during the previous trading session.

Foreign Market:

Most shares in Europe and Asia edged higher on Tuesday as investors await China's trade data ahead of a long-anticipated phase one deal signing with the US on Wednesday, 15 January. Optimism also rose as the US removed China from a list of currency manipulators.

China's trade surplus with the United States narrowed last year, official data showed Tuesday. China's surplus came in at around $295.8 billion in 2019, down 8.5% from the previous year's record $323.3 billion, according to customs data. In December, its surplus with the US was around $23.2 billion, down from $24.6 billion the month before.

Back in Europe, the UK economy unexpectedly shrank in the month before the general election, contracting by 0.3%. The Office for National Statistics (ONS) said on Monday that the month-on-month decline in GDP — the sharpest in seven months — was driven by falls in both the services and production sectors. Compared to the same month in 2018, the UK economy grew by 0.6% in November, the slowest growth since the spring of 2012, the ONS noted.

In US, the S&P 500 and Nasdaq hit all-time high on Monday, as investors awaited the planned signing of a “phase one” US-China trade deal on 15 January 2020 and prepared for fourth-quarter earnings season to move into full swing.

The U.S. Treasury Department on Monday dropped its designation of China as a currency manipulator, an apparent gesture of good will as a Chinese delegation led by Vice Premier Liu He arrived ahead of the signing of the partial trade accord. The deal comes after more than 18 months of tit-for-tat tariff hikes between the world's two largest economies.

Buzzing Indian Index:

The Nifty FMCG index rose 1.41% to Rs 31,145.40. The index has risen 4.52% in six sessions.

Tata Global Beverages (up 10.34%), Britannia Industries (up 2.44%), Colgate Palmolive (India) (up 1.78%), Nestle India (up 1.32%), GlaxoSmithKline Consumer Healthcare (up 1.06%), Godrej Consumer Products (up 1.06%), Dabur India (up 0.78%), Hindustan Unilever (up 0.71%), Bajaj Consumer (up 0.67%), Marico (up 0.47%) and Procter & Gamble Hygiene and Health Care (up 0.41%) advanced.

Trending Stocks:

Wipro rose 0.88%. On a consolidated basis, the IT major reported 3.79% decline in net profit to Rs 2,455.90 crore on 2.28% increase in revenue to Rs 15,470.50 crore in Q3 December 2019 over Q2 September 2019.

IT services segment revenue rose 3.03% to Rs 15,100.60 crore crore in Q3 December 2019 over Q2 September 2019.

In dollar terms, IT services segment revenue was at $2,094.8 million, a sequential growth of 2.2%.

The company expects revenue from IT services business to be in the range of $2,095 million to $2,137 million. This translates to a sequential growth of 0.0% to 2.0%.

Abidali Z. Neemuchwala, CEO and managing director said, “We have delivered a good quarter with secular growth across all business units, geographies and practices. We remain focused on deepening our customer relationships, converting our funnel and winning large deals.”

Jatin Dalal, chief financial officer said, “We expanded operating margins by 0.3% aided by a favorable movement in the currency. Further, we generated strong operating cash flows led by disciplined execution at 124% of our net income.”

Indusind Bank fell 3.85%. The private bank on Tuesday said its net profit rose 32% Rs 1300.20 crore in Q3 December 2019 from Rs 985.03 crore in Q3 December 2018. The bank's net interest income jumped 34.35% year-on-year (YoY) to Rs 3074 crore in Q3 December 2019.

The ratio of gross NPAs to gross advances stood at 2.18% as on 31 December 2019 as against 2.19% as on 30 September 2019 and 1.13% as on 31 December 2018. The ratio of net NPAs to net advances stood at 1.05% as on 31 December 2019 as against 1.12% as on 30 September 2019 and 0.59% as on 31 December 2018.

Bandhan Bank rose 1.03%. The bank on Tuesday said it recorded 120% jump in net profit to Rs 731.03 crore in Q3 December 2019 over Q3 December 2018. Net Interest Income (NII) grew 37.10% to Rs 1,541 crore during the period under review. The numbers cannot be compared as the Q3 results include figures of Gruh Finance, which merged with the bank on 17 October 2019.

The ratio of gross NPAs to gross advances stood at 1.93% as on 31 December 2019 as against 1.76% as on 30 September 2019 and 2.41% as on 31 December 2018. The ratio of net NPAs to net advances stood at 0.81% as on 31 December 2019 as against 0.56% as on 30 September 2019 and 0.7% as on 31 December 2018.

TV18 Broadcast rose 14.89%. On a consolidated basis, the company's net profit fell 9.4% to Rs 121.93 crore while revenue from operations slipped 3.3% to Rs 1,425.37 crore in Q3 December 2019 over Q3 December 2018. Consolidated operating EBITDA soared 145% to Rs 281 crore in Q3 December 2019 compared with Rs 115 crore in Q3 December 2018.

Delta Corp fell 3.48%. The casino operator reported a consolidated net profit of Rs 55.07 crore in Q3 December 2019, up 9% from Rs 50.53 crore in Q3 December 2018. Net sales, however, remained flat at Rs 205.13 crore in Q3 December 2019 as compared to Rs 205.15 crore in Q3 December 2018.

While revenues from the casino gaming division declined by 3.41% to Rs 195.23 crore, those from the online skill gaming division increased 8.74% to Rs 40.29 crore and the hospitality division rose 2.63% to Rs 19.89 crore in Q3 December 2019 over Q3 December 2018.

IRCTC gained 3.81% to Rs 974.70. The Ministry of Railways has given its approval to IRCTC to operate 82901/82902 Ahmedabad-Mumbai Central Tejas Express for six days a week. This train will have its inaugural run on 17 January 2020 and will start its commercial run from 19 January 2020.

Deepak Fertilisers & Petrochemicals jumped 5.02% to Rs 115.15 after the firm divested one of its plots of industrial land in Dahej, Gujarat for Rs 99.20 crore. It is part of its strategy to divest non-core assets.

Key benchmark indices hit record highs on Monday, supported by positive global shares. Easing crude oil prices and strengthening rupee also boosted sentiment. The market also reacted to the positive IIP numbers released by the government on Friday. IT major Infosys was the biggest contributor to index gains. The stock got a boost after encouraging Q3 numbers.

The barometer BSE S&P Sensex rose 259.97 points or 0.62% to 41,859.69, its record closing high. The index hit a record high of 41,899.63 in intraday today.

The Nifty 50 index gained 72.75 points or 0.59% to 12,329.55, its record closing high. The index hit a record high of 12,337.75 in intraday today.

In the broader market, the BSE Mid-Cap index rose 0.87% and the BSE Small-Cap index was up by 0.95%.

The market breadth was strong. On the BSE, 1544 shares rose and 984 shares fell. A total of 183 shares were unchanged.

Economy:

India's industrial output (IIP) grew 1.8% in November against a contraction of 3.8% in October, according to the data released by the government. Manufacturing output, which accounts for more than three-fourths of the entire index, grew 2.7% in November, against a contraction of 2.1% in October. Mining production grew 1.7% against a fall of 8% a month ago.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 6.597% at 16:40 IST compared with 6.585% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 70.8525, compared with its close of 70.94 during the previous trading session.

In the commodities market, Brent crude for March 2020 settlement rose 3 cents to $65.01 a barrel. The contract fell 39 cents or 0.59% to settle at $64.98 a barrel during the previous trading session.

Overseas Markets:

Shares in Europe and Asia advanced ahead of US-China trade deal that will be signed this week on 15 January 2020.

This week Wednesday, U.S. President Donald Trump and Chinese officials are due to sign the long-awaited phase one trade deal between both countries. The deal will involve some tariff relief, increased Chinese purchases of U.S. agricultural goods and changes to intellectual property and technology rules. Meanwhile, Washington and Beijing have agreed to hold semi-annual talks in targeting to resolve disputes and push for reforms.

In US, stocks ended lower on Friday, after the Dow briefly topped the 29,000 milestone, with investor euphoria over recent record highs deflated by data showing slower-than-expected US jobs and wage growth in December.

The US Labor Department said the US economy added 145,000 new jobs in December less than the 266,000 gain in the prior month. The unemployment rate, meanwhile, held near a 50-year low at 3.5%.

Buzzing Indian Index:

The Nifty IT index rose 1.67% to 16,225.90, extending gains for second straight session. The index has risen 1.89% in two sessions.

Oracle Financial Services Software (up 3.46%), Mindtree (up 1.43%), Tech Mahindra (up 1.31%), Wipro (up 1.25%), HCL Technologies (up 1.02%) and Mphasis (up 0.68%) advanced.

TCS (down 1.03%), Hexaware Technologies (down 0.87%) and Persistent Systems (down 0.31%) declined.

Infosys surged 4.76% to Rs 773.40. On a consolidated basis, net profit rose 10.9% to Rs 4,457 crore on 2% increase in revenues to Rs 23,092 crore in Q3 December 2019 over Q2 September 2019.

The company increased FY20 revenue guidance. The revised guidance is 10.0%-10.5% in constant currency higher than 9-10% estimated earlier. It maintained FY20 operating margin guidance range of 21%-23%.

Infosys said that its audit committee has found no evidence of financial impropriety or executive misconduct, giving a clean chit to CEO Salil Parekh and CFO Nilanjan Roy who were accused by anonymous whistleblowers of rigging the company's balance sheet.

The Nifty Realty index rose 2.09% to 317.15, outperforming all other sectoral indices on the NSE. The index has risen 6.77% in three sessions.

Sobha (up 6.97%), Indiabulls Real Estate (up 4.95%), Parsvnath Developers (up 4.95%), Peninsula Land (up 4.86%), HDIL (up 4.81%), Prestige Estates (up 4.25%), DLF (up 3.56%), Unitech (up 2.11%), D B Realty (up 1.7%), Godrej Properties (up 1.11%), Omaxe (up 0.26%), Mahindra Lifespace Developers (up 0.21%), Oberoi Realty (up 0.21%) and Sunteck Realty (up 0.03%) advanced.

Stocks in Spotlight:

Avenue Supermarts rose 1.56%. On a consolidated basis, the company's net profit jumped 55.3% to Rs 384.04 crore in Q3 December 2019 compared with net profit of Rs 247.25 crore in Q3 December 2018. Profit after tax (PAT) margin improved to 5.6% in Q3 December 2019 from 4.5% in Q3 December 2018. Net sales rose 24.4% to Rs 6808.93 crore in Q3 December 2019 from Rs 5474.27 crore in Q3 December 2018.

Tata Steel advanced 1.85%. The company's wholly-owned Netherlands- based subsidiary, Tata Steel Netherlands Holdings BV (TSNBHV), said that it has executed agreements for the refinancing of its bank debt. TSNBHV has raised term loan facilities of euro 1.75 billion from 19 banks. The fresh arrangement will enable the standalone European business to have a more robust balance sheet.

Yes Bank slumped 6.03% to Rs 42.10. The private sector bank said that its board have approved raising of funds upto Rs 10,000 crore through a mix of equity and debt and decided not to proceed with the offer from Erwin Singh Braich-SPGP Holdings. The bank will hold extra-ordinary general meeting to obtain shareholders' approval for fund raising.

Adani Enterprises rose 2.30% after Siemens AG said it will remain involved in a controversial Adani coal mining project in Australia. Germany's Siemens AG on 10 December 2019 signed the contract to supply signaling systems for a rail link between the Adani Carmichael coal mine and a port. The contract is worth about $20 million to Siemens.

Climate activists wanted Siemens to quit the mine project because emissions from coal-fired power plants contribute to global warming. Opposition has worsened in the wake of Australia's recent devastating bushfires.

Tata Elxsi jumped 5.17% after the company reported a 51.43% jump in net profit to Rs 75.42 crore in Q3 December 2019 as against Rs 49.80 crore reported in Q2 September 2019. Revenue from operations rose 9.75% to Rs 423.43 crore on QoQ basis.

Tata Chemicals rose 2.18% while Tata Global Beverages rose 3.40%. Both the stocks hit their respective 52-week highs in intraday trade today.

The National company Law Tribunal (NCLT), Mumbai Bench, vide its order dated 10 January 2020 had sanctioned the Scheme of Arrangement between Tata Chemicals and Tata Global Beverages and their respective shareholders and creditors for the demerger of the consumer products business consisting of the business of sourcing, packaging, marketing, distribution and sales of vacuum evaporated edible common salt for human consumption, spices, protein foods and certain other food and other products from Tata Chemical to Tata Global Beverages.

In May last year, Tata Group had decided to demerge consumer business of Tata Chemicals and merge it with Tata Global Beverages. Tata Global Beverages will be renamed as Tata Consumer Products. The management said the combination of the two consumer-focused businesses will benefit both sets of shareholders who will be able to participate in a larger business poised to grow their share of the foods & beverages market with a broader exposure to the attractive and fast growing FMCG sector.

Edelweiss Financial Services gained 3.73% after the company's chairman Rashesh Shah denied links with Capstone Forex, which is being investigated by the Enforcement Directorate for foreign exchange rules violation.

Key domestic indices ended the volatile trading session with modest gains on Friday. The market sentiment was upbeat amid positive global cues. The Nifty pared gains after hitting a record high of 12,311.20 in early afternoon trade.

The barometer BSE S&P Sensex rose 147.37 points or 0.36% to 41,599.72. The Nifty 50 index gained 40.90 points or 0.33% to 12,256.80.

In the broader market, the BSE Mid-Cap index rose 0.40% and the BSE Small-Cap index rose 0.42%. Both these indices outperformed the Sensex.

The market breadth was positive. On the BSE, 1442 shares rose and 1128 shares fell. A total of 159 shares were unchanged.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 6.588%, compared with 6.524% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 70.94, compared with its close of 71.2150 during the previous trading session.

In the commodities market, Brent crude for March 2020 settlement fell 15 cents to $65.52 a barrel. The contract fell 7 cents or 0.11% to settle at $65.37 a barrel during the previous trading session.

Foreign Market:

Shares in Europe and Asia edged higher on Friday, following the easing of US-Iran tensions, and after US stocks shot to record highs.

In US, stocks swept to record highs once again on Thursday as investors focused on progress on the trade pact with China due to be signed next week and amid an easing of concerns about war in the Middle East.

China's Vice Premier Liu He, the head of the country's negotiating team in trade talks with the United States, will sign a Phase 1 deal in Washington, DC, next week, the commerce ministry said on Thursday. Liu will visit the US capital from January 13 to 15, said Gao Feng, a spokesman at the commerce ministry.

In economic data, the number of Americans who applied for unemployment benefits fell in early 2020 for the fourth week in a row, putting new jobless claims back near the lowest level in about 50 years. Initial jobless claims declined by 9,000 to 214,000 in the seven days ended 4 Jan 2020.

India Q3 Earnings:

IT major Infosys rose 1.47% to Rs 738.25. The company after market hours on Friday announced its Q3 results. On a consolidated basis, net profit rose 10.9% to Rs 4,457 crore on 2% increase in revenues to Rs 23,092 crore in Q3 December 2019 over Q2 September 2019. The Q3 numbers are as per International Financial Reporting Standards (IFRS).

Operating profit rose 3.1% to Rs 5,064 crore in Q3 December 2019 over Q2 September 2019. Operating margin was 21.9% in Q3 December 2019 as against 21.7% in Q2 September 2019.

The company increased FY20 revenue guidance. The revised guidance is 10.0%-10.5% in constant currency higher than 9-10% estimated earlier. It maintained FY20 operating margin guidance range of 21%-23%.

“Q3 results further underscore that we remain steadfast in our journey of sustained client relevance and deepening engagement with them, as they partner with us in navigating their next in the digital transformation era”, said Salil Parekh, CEO and MD. “For us, this has translated into double digit growth year-to-date, leading to an increase in revenue guidance, accompanied by expanding operating margins.”

“Overall performance during the quarter was satisfactory on multiple counts -broad-based growth, steady increase in client metrics and healthy large deal wins”, said Pravin Rao, COO. “Large deal wins continue to be robust with growth of 56% so far this year. We had a further reduction in attrition, demonstrating the results of our continued efforts towards strengthening employee engagement and value proposition.”

“Operating margins improved further during the quarter driven by relentless cost optimization and operating leverage”, said Nilanjan Roy, CFO. “Cash generation was extremely strong with cumulative free cash flow crossing $1.5 bn. Return on Equity increased further to 25.9% driven by margin expansion and increased shareholder payouts.”

Meanwhile, Infosys announced conclusion of the independent investigation into allegations contained in the anonymous whistleblower complaints disclosed earlier. The Audit Committee determined that the allegations are substantially without merit. It concluded that no restatement of previously announced financial statements or other published financial information is warranted.

GTPL Hathway rose 1.66% after the company announced robust Q3 earnings. On consolidated basis, the company reported a 78.2% jump in net profit to Rs 33.06 crore on a 114.3% jump in net sales to Rs 673.97 crore in Q3 December 2019 over Q3 December 2018.

Emami Paper was locked in an upper circuit of 10% at Rs 89.5 after the company announced a stellar Q3 December 2019 result. On standalone basis, net profit jumped 222.9% to Rs 18.50 crore on a 7.4% rise in net sales to Rs 400.08 crore in Q3 December 2019 over Q3 December 2019.

Buzzing Segment:

Shares of most Tata Group companies advanced after the Supreme Court (SC) on Friday stayed NCLAT order reinstating Cyrus Mistry as executive chairman of Tata Sons.

SC on Friday, 10 January 2020, stayed the National Company Law Appellate Tribunal (NCLAT) decision to restore Cyrus Mistry as executive chairman of the Tata Group. SC noted that it looked at the judicial attitude with which the NCLAT made the 18 December order and found that it is sorely lacking.

SC asked Mistry and Shapoorji Pallonji group including Sterling Investment and Cyrus Investment to file a reply to the Tata group's appeal in four weeks.

NCLAT on 18 December 2019 ruled in favour of Cyrus Mistry on petition challenging his removal as Chairman of Tata Sons. The tribunal restored Mistry as the Executive Chairman of Tata Group, holding the appointment of N Chandrasekaran as executive chairman illegal.

Tata Global Beverages (up 3.9%), Rallis India (up 3.38%), Tata Chemicals (up 2.45%), Tata Power (up 1.99%), Tata Coffee (up 1.86%), Tata Steel Long (up 1.78%), Tinplate Company of India (up 0.56%) and Voltas (up 0.35%) advanced.

Tata Steel rose 0.73%. The steel major announced its operational update for Q3 December 2019 before market hours today, 10 January 2020. Tata Steel India's production volume rose 1.83% to 4.46 million tons in Q3 December 2019 as against 4.38 million in Q3 December 2018. Production in Europe surged 6.84% to 2.5 million tons in same period. Sales Volume showed a significant improvement on YoY basis. Tata Steel India's sales jumped 24.42% to 4.84 million tonne in Q3 December 2019. Sales in Europe declined 1.7% to 2.31 million tons on the back of overall slowdown and seasonal weakness.

Tata Motors rose 2.27% after Jaguar Land Rover (JLR) reported retail sales of 52,814 vehicles for December 2019, up 1.3% over the previous year.

Stocks in Spotlight:

Yes Bank fell 5.29% to Rs 44.80. The bank announced after trading hours that it has received the resignation of Uttam Prakash Agarwal, an independent director and chairman of the audit committee of the board of the bank. In his resignation letter, Agarwal has made certain observations on the bank's governance and the same shall be duly examined by the board.

The bank clarified that it was reviewing the 'fit and proper' status of Agarwal as directed by the Reserve Bank of India. In this respect, the bank had obtained legal opinions from eminent jurists. These opinions were to be considered by the nomination and remuneration committee of the board/the board of the bank in their meetings scheduled for today, 10 January 2020. However, prior to the commencement of the proceedings of these meetings, the bank received the resignation of Agarwal.

In a separate announcement after trading hours, Yes Bank said that its board approved raising upto Rs 10,000 crore, in one or more tranches, through Qualified Institutions Placement (QIP)/ Global Depository Receipts (GDRs)/ American Depository Receipts (ADRs)/ Foreign Currency Convertible Bonds (FCCBs)/ or any other methods on private placement basis.

Edelweiss Financial Services slumped 9.56% at Rs 106 after the media reported that the Enforcement Directorate (ED) has summoned Edelweiss Group chairman Rashesh Shah in Rs 2,000 crore forex scam.

According to media reports, Edelweiss Group founder and chairman Rashesh Shah was summoned by the Enforcement Directorate on Friday in connection with a Rs 2,000 crore forex scam. Shah's benami firms are under scanner the federal probe agency. The ED has busted the Rs 2,000 crore forex smuggling racket, reports added.

Delta Corp rose 2.76% after the company said its subsidiary received a license for operating a casino at the Marriot Hotel in Nepal. The operations of the casino are expected to commence soon, the company said in a statement after market hours yesterday, 9 January 2019.

Sterlite Technologies (STL) rose 2.29%. Sterlite Global Venture (Mauritius) a wholly owned subsidiary of STL, has entered into definitive agreements to acquire 12.8% stake (on issued and outstanding basis) in ASOCS, a vRAN technology company based out of Israel.

KNR Constructions rose 9.39% after the company announced that it will sell its entire equity stake in a toll road BOT asset of special purpose vehicle (SPV), KNR Walayar Tollways (KWTPL), to Singapore-based Cube Highways and Infrastructure III. KNR Constructions holds 100% equity in the SPV.

The enterprise value of the assets for this transaction is Rs 529.27 crore excluding claims receivable from National Highway Authority of India (NHAI) and other governmental instrumentalities, which would be passed through to the company as and when realized, it added.

The domestic stock market ended with robust gains on Thursday, supported by strong global cues, reversal in crude oil prices and a sharp rebound in rupee. Global stock markets advanced as the United States and Iran backed away from the brink of conflict in the Middle East while investors reversed their safety plays.

The barometer BSE S&P Sensex rose 634.61 points or 1.55% to 41,452.35. The Nifty 50 index gained 190.55 points or 1.58% to 12,215.90.

The rally was wide spread. The S&P BSE Mid-Cap index rose 1.51% while the S&P BSE Small-Cap index gained 1.55%.

The market breadth was strong. On the BSE, 1820 shares rose and 752 shares fell. A total of 208 shares were unchanged.

Economy:

Growth in India is projected to decelerate to 5% in FY2019/20 amid enduring financial sector issue, the World Bank noted in a latest update. Economic activity was constrained by insufficient credit availability, as well as by subdued private consumption.

In India, activity slowed substantially in 2019, with the deceleration most pronounced in the manufacturing and agriculture sectors, whereas government-related services subsectors received significant support from public spending. GDP growth decelerated to 5% and 4.5% in the April-June and July-September quarters of 2019, respectively—the lowest readings since 2013.

Sharp slowdowns in household consumption and investment offset the rise in government spending. High-frequency data suggest that activity continued to be weak for the rest of 2019.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.538% compared with 6.557% in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was trading at 71.24, compared with its previous closing low of 71.70.

In the commodities market, Brent crude for March 2020 settlement was flat at $65.44 per barrel. The contract slumped 4.15% to settle at $65.44 a barrel in previous session as geo-political tensions in Middle East eased.

MCX Gold futures for 5 February 2019 settlement declined 0.80% to Rs 39,791.

Foreign Markets:

Shares in Europe and Asia edged higher on Thursday on the back of easing US-Iran tensions.

US stocks posted gains, with the Nasdaq notching a new record close, after remarks by President Trump suggested the US and Iran were refraining from further military action following attacks on US bases overnight, in retaliation for last week's killing of Maj. Gen. Qassem Soleimani by American forces.

President Donald Trump said Wednesday that Tehran “appears to be standing down” following missile strikes on Iraq airbases housing U.S. troops in retaliation to the killing of Iran's top military general, Qasem Soleimani.

Trump added Washington would “immediately impose additional punishing economic sanctions on the Iranian regime” and called on U.S. allies including Britain, Germany and France to withdraw from the 2015 Iran nuclear deal and work to form a new agreement.

Buzzing Indian Sectors:

The Nifty Auto index rose 2.68% to 8,155.25. Tata Motors (up 5.18%), Escorts (up 4.84%), Mahindra & Mahindra (up 3.14%), TVS Motor Company (up 3%), Maruti Suzuki India (up 2.76%), Ashok Leyland (up 2.42%), Eicher Motors (up 2.17%), Hero MotoCorp (up 1.57%) and Bajaj Auto (up 0.89%) advanced.

Shares of public sector oil marketing companies (PSU OMCs), aviation firms and paint makers advanced after a reversal in crude oil prices.

Among PSU OMCs, Hindustan Petroleum Corporation (up 4.68%), Bharat Petroleum Corporation (up 2.25%) and Indian Oil Corporation (up 2.13%) rose. Lower crude oil prices could reduce under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.

Among the paint makers, Berger Paints India (up 2.75%), Shalimar Paints (up 2.72%), Asian Paints (up 2.44%), Asahi Songwon Colors (up 1.16%) and Akzo Nobel India (up 0.47%) edged higher. Lower crude oil prices decrease input costs for paint companies, which use crude derivatives.

Among aviation companies, Spicejet (up 7.10%) and InterGlobe Aviation (up 3.70%) edged higher. Lower crude oil prices support aviation firms as jet fuel prices are directly linked to international crude oil prices. Jet fuel typically constitute over 40% of airlines' operating costs.

Jet Airways India hit an upper circuit limit of 5% at 41.45. The defunct airline has reportedly received two Expressions of Interest (EoI). Two more EoIs are expected ahead of the January 15 deadline, reports added.

Stocks in Spotlight:

Yes Bank rose 2.71% ahead of the bank's board meeting on Friday, 10 January 2020, to consider fund raising.

Sunteck Realty jumped 6.41% after the company said it tied up with State Bank of India (SBI) for a finance scheme. The real estate developer announced that it has signed an memorandum of understanding with SBI, which is the first step towards boosting the residential housing sector under SBI's Sapna Aapka - Bharosa SBI Ka scheme with bank guarantee to home buyers under the builder finance scheme.

Shares of Cipla and Glenmark Pharmaceuticals rose by 1.17% to 1.88% on reports that both these companies received regulatory approval for increasing price of two of their respiratory products. According to the media report, the National Pharmaceutical Pricing Authority's (NPPA) has allowed Cipla and Glenmark to enhance pricing of two of their respiratory (inhaler) products on grounds that these were 訴nnovative' from the other similar products available in the market.

In a meeting in December, the National Pharmaceutical Pricing Authority's (NPPA) expert committee reportedly decided to allow Cipla's Synchrobreathe Inhaler Device a separate price other than the ceiling price already recommended by the regulator.

Bharti Airtel rose 0.20% after the company launched qualified institutional placement to raise Rs 14,400 crore at an indicative floor price of Rs 452.09 per share. It also announced the issue of foreign currency convertible bonds (FCCBs) of an aggregate amount of upto $1 billion at a floor price of Rs 452.09.

On 5 December 2019, Bharti Airtel had informed about its plans to raise $2 billion via qualified institutional placement of shares and an additional $1 billion via foreign currency convertible bonds (FCCBs).

Indiabulls Housing Finance added 4.15%. The company has made an offer to all debenture holders for pre-mature redemption of its NCDs maturing in January 2020.

Aster DM Healthcare rose 2.93% to Rs 164.90. The company said that its board approved a buyback of up to 57,14,285 equity shares, or 1.13% equity, at Rs 210. The buyback size shall not exceed Rs 120 crore.

Key benchmark indices endured a volatile session and ended with small losses on Wednesday. Sentiment was fragile after Iran fired more than a dozen missiles at two US military targets inside Iraq in response to the United States' killing of senior Iranian military commander Qassem Soleimani last week.

The barometer BSE S&P Sensex fell 51.73 points or 0.13% to 40,817.74. The index fell 392.92 points, or 0.96% at the day's low of 40,476.55 in morning trade.

The Nifty 50 index fell 27.60 points or 0.23% to 12,025.35. The index fell 123.35 points, or 1.02% at the day's low of 11,929.60 in morning trade.

The broader market recouped all losses in late trade. The S&P BSE Mid-Cap index rose 0.08% while the S&P BSE Small-Cap index gained 0.16%.

The market breadth turned positive in the last hour of the session. On the BSE, 1014 shares rose and 1444 shares fell. A total of 180 shares were unchanged.

Economy:

The National Statistical Office on Tuesday forecast India's GDP growth to be 5% in 2019-20, slower than the previous year's 6.8% and in line with the RBI estimate. Real GVA growth is estimated 4.9% in 2019-20 as against 6.6% in 2018-19.

Numbers to Track:

MCX Gold futures for 5 February 2019 settlement advanced 0.36% to Rs 40,808.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was trading at 71.735, compared with its previous closing low of 71.82.

In the commodities market, Brent crude for March 2020 settlement was up 91 cents a barrel, or 0.62%, at $68.60 per barrel. The contract fell 64 cents or 0.92% to settle at $68.27 a barrel on Tuesday, 7 January 2020.

Foreign Markets:

Stocks in Europe and Asia edged lower on Wednesday after the Middle East tensions flared following Iran's attack on military facilities in Iraq hosting American troops.

Tehran retaliated to Washington's killing of its top military commander late Tuesday, launching more than a dozen ballistic missiles targeted at US military forces in Iraq.

Iranian Foreign Minister Mohamad Javad Zarif tweeted we do not seek escalation or war, but will defend ourselves against any aggression.

All is well! President Donald Trump tweeted, adding that an assessment of casualties was taking place.

Back in Europe, British Prime Minister Boris Johnson is meeting with European Commission President Ursula von der Leyen Wednesday, where he is due to tell her that the U.K. will not extend its transition out of the EU beyond December 2020.

US stock market ended slightly lower Tuesday, as concerns about the possibility of war in the Middle East overshadowed favorable US economic data.

In economic data, the US ISM service sector index rose to a four-month high of 55 in December, according to the Institute for Supply Management. The US Commerce Department also reportedly said the trade deficit narrowed in November to a 3-year low, but factory orders fell 0.7% in November.

Buzzing Indian Indices:

The Nifty IT rose 0.37% to 15,953.45, outperforming all other sectoral indices on the NSE.

Oracle Financial Services Software (up 2.98%), TCS (up 2.26%), Mindtree (up 0.49%), Persistent Systems (up 0.26%) and HCL Technologies (up 0.13%) advanced.

Hexaware Technologies (down 0.15%), Wipro (down 0.35%), Mphasis (down 0.73%) and Tech Mahindra (down 1.29%) declined.

Infosys fell 1.32%. The IT major will announce Q3 results on Friday, 10 January 2020.

Stocks in Spotlight:

Adani Enterprises fell 1.23%. The Supreme Court on Wednesday reportedly issued notice to Adani Enterprises on an appeal by Directorate of Revenue Intelligence (DRI) in a matter connected with the alleged over-invoicing of Indonesian coal imports.

DRI alleges that the Adani group companies had overvalued the coal that it imported from Indonesia to avail tax benefits in India between 2010 and 2016. The group routed the imports through several countries and siphoned off money, according to DRI.

Ramco Systems jumped 3.68% after the company secured a multi-million-dollar global payroll and workforce management deal from a leading Australian University.

Navin Fluorine International rose 6.74% to Rs 1,090.65. The stock hit a record high of Rs 1,104.75 in intraday today. The company commenced commercial production with added capacity in its Dewas Plant in Madhya Pradesh.

Maruti Suzuki India fell 0.58%. The company's total production rose 7.88% to 1.15 lakh units in December 2019 from 1.07 lakh units in December 2018.

Mahindra & Mahindra lost 0.39%. CARE Ratings has reaffirmed M&M's long term rating on bank loan facilities at AAA with stable outlook. The short-term rating was reaffirmed at A1+. The ratings factors the company's its dominant market position in the Indian tractor industry and Light commercial vehicles (LCV) segment.

Yes Bank gained 2.11% to Rs 46.05 after the bank said its board will meet on 10 January 2020 to consider fund raising. Meanwhile, Yes Bank is banned from trading in NSE's F&O segment after the security crossed 95% of market wide position limit.

Tata Steel fell 0.02%. The steel major announced that its arm TS Alloy has received a letter of intent for grant of mining lease by Odisha Government for the chromite mine. The mining lease given is for 50 years.

Shares of Goa Carbon hit 5% upper circuit at Rs 230.4 after the company reported its December 2019 production numbers. Production of Calcined Production Coke surged 76.69% higher to 11,111.800 MT in December 2019 as against 6289 MT in December 2018. Production declined 28% sequentially in December 2019 as against November 2019.

NCL Industries fell 3.89%. The company's cement production fell by 23% to 423,199 MT in Q3 December 2019 from 552,019 MT in Q3 December 2018. Cement dispatches declined by 22% to 430,861 MT in Q3 December 2019 as compared to 552,395 MT in Q3 December 2018.

Domestic shares bounced back on Tuesday, supported by positive global markets. The Nifty, however, failed to close above its 20 days simple moving average (DMA) placed at 12,140.44.

Investors continued monitoring the geopolitical developments following Washington's targeted killing of Iran's top military commander Qasem Soleimani in Iraq. After falling for the past two sessions, stock markets around the globe resumed uptrend as Monday passed with no new escalation in tensions.

The barometer BSE S&P Sensex rose 192.84 points or 0.47% to 40,869.47. The Nifty 50 index advanced 59.90 points or 0.50% to 12,052.95.

In the broader market, the S&P BSE Mid-Cap index rose 0.65% while the S&P BSE Small-Cap index rose 0.99%. Both these indices outperformed the Sensex.

The market breadth was strong. On the BSE, 1558 shares rose and 931 shares fell. A total of 175 shares were unchanged.

The government will release the first advance estimates of the GDP for FY20 today at 5.30 pm. India's GDP slowed to 4.5% in Q2 September 2019. The figure stood at 5% in Q1 June 2019. The first advance estimates will take into account the figures available for the first nine months of the current fiscal.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.558% compared with 6.565% in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was trading at 71.79, compared with its previous closing of 71.935.

In the commodities market, Brent crude for March 2020 settlement was down 41 cents a barrel, or 0.59%, at $68.50 per barrel. The contract rose 31 cents or 0.45% to settle at $68.91 a barrel on Friday, 3 January 2020.

Foreign Markets:

Shares in Europe and Asia edged higher on Tuesday amid an easing of concerns over geopolitical tensions in the Middle East.

US stocks staged a U-turn on Monday to close at session highs, as investors brushed aside concerns about escalating tensions in the Middle East.

In economic data, the IHS Markit purchasing managers index for the US services sector came in at 52.8 in December, versus 51.6 in November, indicating continued expansion.

Buzzing Indian Indices:

The Nifty Realty index rose 1.93% to 298.05. The index fell 2.86% in the previous two trading sessions.

Peninsula Land (up 8.42%), Godrej Properties (up 4.94%), Sunteck Realty (up 3.78%), D B Realty (up 3.68%), Anant Raj (up 3.14%), Indiabulls Real Estate (up 3.08%), DLF (up 1.99%), Mahindra Lifespace Developers (up 1.2%), Parsvnath Developers (up 0.46%), Oberoi Realty (up 0.25%), Sobha (up 0.19%) and Omaxe (up 0.1%) advanced.

The Nifty Metal index rose 0.73% to 2,785.90. The index fell 3.63% in the previous two sessions.

Vedanta (up 3.62%), Hindustan Copper (up 2.69%), Sail (up 1.56%), NALCO (up 0.80%), Hindustan Zinc (up 0.68%), Tata Steel (up 0.52%) and JSW Steel (up 0.42%) advanced.

Jindal Steel & Power (JSPL) fell 0.06%. JSPL said it witnessed the highest ever quarterly production of 1.61 million tonnes of steel in Q3 December 2019. Raigarh & Angul operations have contributed 8,17,344 & 7,92,822 metric tonnes tothis achievement.

JSPL has delivered a solid performance in Q3. Despite adverse market conditions, JSPL has achieved these results due to the determination of our able leadership & talented work-force across all locations, said VR Sharma, MD, JSPL.

Stocks in Spotlight:

HDFC Bank rose 1.59%. The bank's advances grew by 20% to Rs 9.34 lakh crore as of 31 December 2019 as compared to Rs 7.81 lakh crore as of December 31, 2018. Lender's advances stood at Rs 8.97 lakh crore as of September 30, 2019.

Deposits for HDFC Bank stood at Rs 10.67 lakh crore as of 31 December 2019 growing by 25% compared to Rs 8.52 lakh crore as of 31 December 2018. In September 2019, deposits stood at Rs 10.21 lakh crore. Current and saving account (CASA) ratio stood at around 39.5% as of 31 December 2019, as compared to 40.7% as of 31 December 2018 and 39.3% as of 30 September 2019.

Mahindra & Mahindra (M&M) advanced 0.47% after reporting 22.54% rise in production at 33,888 units in December 2019 as against 27,653 units during the same month last year.

G M Breweries fell 4.22%. On standalone basis, the company reported a 16.34% decline in net profit to Rs 13.98 crore in Q3 December 2019 over Q3 December 2018. Total revenue from operations declined 3.89% to Rs 119.74 crore in Q3 December 2019 as against Rs 124.58 crore in Q3 December 2018.

The company in notes to accounts clarified that the drop in PBT (profit before tax) is mainly on the back of unprecedented rise in cost of company's main raw material namely, rectified spirit. Net impact of increase in average price of rectified spirit is Rs 6.33 crore.

ITI surged 13.37% after the company announced a stellar Q3 December 2019 earnings after market hours yesterday. The telecommunications equipment manufacturer reported 1139% jump in its consolidated net profit to Rs 168.25 crore on a 47% jump in net sales to Rs 827.95 crore in Q3 December 2019 over Q3 December 2018.

The bump in the net profit was aided by 107.9% rise in the company's other income to Rs 150.87 crore received from the government for meeting the company's PF liabilities towards its employees and also account of 'write-back' of liablities which in the opinion of the company is no longer required.

Mishra Dhatu Nigam rose 1.83% after the company dispatched its first consignment of ultra high strength steel for ignitor box and cobalt alloy for throat sitting rings for indigenous manned mission of Indian Space Research Organisation (ISRO) 'Gaganyaan'.

PI Industries fell 0.81%. The chemical manufacturer said a factory accident that happened in one section of a multi-product plants at Jambusar fine chemicals manufacturing site in Gujarat. This accident unfortunately resulted in two fatalities and nine others are injured. The accident did not result in any fire or hazardous emissions but was limited to one MPP and has not affected operations of the other MPPs at the site.

Key domestic equity market slumped on Monday, as tensions in the Middle East dragged global shares lower. Investors fled riskier assets like equities in favor of safer alternatives like gold and bonds. Meanwhile, Brent crude oil climbed above $70 a barrel, stoking fears of inflationary pressures. The Nifty slipped below its 50 days simple moving average (DMA) placed at 12,013.46, reporting its worst fall since 3 September 2019.

The barometer BSE S&P Sensex tanked 787.98 points or 1.90% to 40,676.63. The Nifty 50 index slumped 233.60 points or 1.91% to 11,993.05.

In the broader market, the S&P BSE Mid-Cap index fell 2.31% while the BSE Small-Cap index lost 1.96%.

The market breadth was weak. On BSE, 604 shares advanced while 1944 shares declined. A total of 181 shares were unchanged.

Economy:

The IHS Markit India Services PMI rose to a five month high of 53.3 in December 2019 from 52.7 a month earlier. The Composite PMI Output Index was up to 53.7 in December from 52.7 in November, reflecting stronger rates of expansion in both the manufacturing and service sectors.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.545% compared with 6.510% in the previous trading session.

MCX Gold futures for 5 February 2019 settlement advanced 1.92% to Rs 40,881.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was trading at 71.965, compared with its previous closing low of 71.80.

In the commodities market, Brent crude for March 2020 settlement was up $1.02 a barrel to $69.62 per barrel. The contract hit its day's high at Rs 70.75, its highest intraday level since 23 May 2019.

The contract rose $2.35 or 3.5% to settle at $68.60 a barrel on Friday, 3 January 2020, after a US air strike killed key Iranian and Iraqi military personnel, raising concerns that escalating Middle East tensions may disrupt oil supplies.

India is heavily dependent on oil imports for satisfying its domestic demand. A high crude price directly maps into a high trade deficit and in turn a high current account deficit (CAD). Higher crude prices also lead to a spike in domestic inflation.

Foreign Markets:

Trading in the futures market indicated that the Dow Jones may slide 178 points at opening bell on Monday.

Shares in Europe and Asia fell across the board on Monday as geopolitical tensions flared up after a U.S. airstrike killed Iran's top military commander. The Iranian regime said Sunday that it would no longer abide by uranium enrichment limits established in the 2015 nuclear deal, which the U.S. unilaterally withdrew from in 2018.

On Sunday President Trump reportedly threatened to impose sanctions on Iraq, the second largest producer among the Organization of the Petroleum Exporting Countries (OPEC), if US troops were forced to withdraw from the country. Baghdad earlier called on American and other foreign troops to leave Iraq.

Trump also said that the United States will retaliate against Iran if Tehran were to strike back after the killing.

Buzzing Indian Indices:

The Nifty Bank index fell 2.59% to 31,237.15. Among private sector banks, RBL Bank (down 5.68%), Federal Bank (down 4.45%), Yes Bank (down 4.14%), IndusInd Bank (down 3.96%), Axis Bank (down 2.73%), ICICI Bank (down 2.43%), City Union Bank (down 0.81%) and Kotak Mahindra Bank (down 0.26%) tumbled.

Among public sector banks, Canara Bank (down 6.45%), Punjab National Bank (down 5.61%), Bank of Baroda (down 5.01%), State Bank of India (down 4.43%), IDBI Bank (down 3.9%), Corporation Bank (down 3.59%), Union Bank of India (down 3.11%) and Bank of India (down 2.83%) slumped.

Indian Overseas Bank surged 3.87% to Rs 11.54. The state-run lender said it has received capital infusion of Rs 4,360 crore from the government. IOB said it has received the amount as contribution of the government in preferential allotment of equity shares during the financial year 2019-20 as government's investment.

Karur Vysya Bank slumped 5.19% to Rs 56.65 after the bank's chief executive officer (CEO) and managing director (MD) P R Seshadri resigned, citing personal reasons. Seshadri will continue to function till the end of this financial year 2019-20.

Metal stocks tumbled as rising global tension could hamper demand for industrial metals. The Nifty Metal index slumped 2.90% to 2,765.75.

Hindustan Copper (down 4.71%), Vedanta (down 4.47%), NALCO (down 4.38%), Sail (down 4.07%), Hindalco Industries (down 3.28 %), JSW Steel (down 3.05%), Jindal Steel & Power (down 2.77%), Tata Steel (down 2.18%) and Hindustan Zinc (down 1.81%) slumped.

Trending Stocks:

Index heavyweight Reliance Industries fell 2.33% to Rs 1501.50.

HDFC twins declined. Housing Development Finance Corporation (HDFC) (down 2.86%)and HDFC Bank (down 2.13%), declined.

Bajaj Finance fell 4.63% after the company issued business update for Q3 December 2019.

The company in an exchange filing made before market hours today informed that its customer franchise as of 31 December 2019 stood at approximately 40.4 MM as compared to 32.6 MM as of 31 December 2018. During the Q3 December 2019 quarter, the company acquired 2.5 MM new customers.

Further, new loans booked during Q3 December 2019 stood at 7.7 MM as compared to 6.8 MM in Q3 December 2018. The company's assets under management (AUM) stood at approximately Rs 145,200 crore as of 31 December 2019 as compared to Rs 107,507 crore as of 31 December 2018.

Titan Company rose 1.65% after the company's jewellery division witnessed revenue growth of 11% in Q3 December 2019, meeting its revised expectations for the quarter. The retail growth was actually much better at 15%. While the industry witnessed reasonable growth in the festive season, the company has done better which is evident in the market share gains.

The general economic slowdown in the economy leading to poor consumer sentiment and lower walk ins has been a concern for the last few quarters. The company experienced different consumer responses in each of its divisions. Retail sales in jewellery were better than expected at the beginning of the quarter, possibly due to a good wedding season and reasonable in-elasticity of wedding jewellery, but growth in Watches and Eyewear were difficult to come by. Sales in all divisions in the second half of December was also impacted to some extent due to forced store closures due to the protests in the North East and in many other parts of the country, Titan Company said in its Q3 update.

Dixon Technologies (India) rose 0.34% to Rs 3964.10 after the company said it has entered into agreement with Samsung India Electronics (Samsung) for manufacturing of LED TVs. Dixon shall be manufacturing LED TV for Samsung from its manufacturing facility located at Tirupati, Andhra Pradesh.

Dishman Carbogen Amcis was locked in an upper circuit of 5% at Rs 66.95, snapping a four-day losing streak after the company said that its board of directors will consider buyback of shares on 16 January 2020.

Shares of Indian Energy Exchange (IEX) rose 4.44% to Rs 167, extending its winning run to fifth consecutive session.

The stock jumped 6.71% to end at Rs 159.90 on Friday, 3 January 2020, after the company that day issued its business update for December 2019. The electricity market at IEX recorded a total trade of 4,768 million units (MU) in December 2019. The market witnessed a 51% year-on-year and 25% month-on-month increase in traded volumes demonstrating increased preference by the distribution utilities for the exchange platform that offers power procurement at the most competitive prices in a flexible and customized way.

Adani Ports and Special Economic Zone (APSEZ) fell 0.65%. The company said it will acquire 75% stake of Krishnapatnam Port Company (KPCL) from the existing shareholders. The investment is in line with the company's strategy to increase its footprint in Andhra Pradesh. KPCL handled 54 MMT in FY2019. Acquisition value of KPCL is approximately Rs 13,500 crore. The purchase consideration will be funded through internal accruals.

Force Motors jumped 7.51% after the company announced robust sales numbers for the month of December 2019. Total domestic sales rose by 30.01% to 2,517 units in December 2019 from 1,936 units in November 2019. The figure was also up by 52.55% YoY from 1,650 units in December 2018.

Tata Motors fell 2.85%. Jaguar Land Rover (JLR) total December U.S. sales reached 13,801 units, slightly down from December 2018. For the calendar year, Jaguar Land Rover achieved 125,787 units, up 3% compared to the previous record of 122,626 units in 2018 and establishing a new all-time U.S. sales record for the combined brands.

Bharat Forge, which manufactures class 8 trucks, lost 1.27%. Preliminary North America Class 8 net orders in December 2019 were 20,000 units, up 14% from November and down 6.5% from year-ago December, as the industry transitions to much easier year-over-year comparisons.

Biocon fell 4.24%. The company informed that the board of its subsidiary Biocon Biologics India has approved a primary equity investment by True North. As per the terms of the proposed agreement, True North will invest Rs 536.25 crore that will eventually translate to a 2.44% minority stake in the biosimilars business post all restructuring, including the filed merger of Biocon Research with Biocon Biologics.