The Sensex opened over 170 points higher on Tuesday tracking gains in index-heavyweights RIL, Bharti Airtel, HDFC Bank, Axis Bank and Infosys. Shares inched higher on Tuesday, driven by banking and telecom stocks after two major mobile network service providers said they planned to raise tariffs from next month.
— CNBC-TV18 (@CNBCTV18Live) November 19, 2019
After hitting a high of 40,455.36 in the early session, the 30-share index pared some gains to trade 58.59 points, or 0.15 percent, higher at 40,342.78, while the broader NSE Nifty advanced 14 points, or 0.12 percent, to 11,898.50.
The NSE Nifty 50 index rose 0.2 percent to 11,906.25, while the S&P BSE Sensex gained 0.4 percent to 40,455.36.
“Markets are in a consolidation phase after the recent rally,” said AK Prabhakar, head of research at IDBI Capital. Tariff hike announcements by telecom companies will benefit banks as they have huge exposure to the sector, he said to Reuters.
The Nifty has immediate support in the range of 11,700-11,800, said Amit Shah, technical research analyst with Indiabulls Ventures, in a note. The index is poised to hit an all-time high above the 12,100 zone, Shah added.
On Monday, Bharti Airtel and Vodafone Idea said they would increase mobile tariffs from December, after posting record quarterly losses. Airtel shares rose 4.8 percent and were among the top gainers in the Nifty index, while Vodafone shares jumped 18 percent. Banking and IT stocks led gains, rising 0.2 percent to 0.4 percent.
The Nifty main index has risen over 12 percent since hitting a six-month low mid-August, supported by government measures to boost investor confidence as Asia’s third-largest economy faces slowdown. Top gainers in the Sensex pack included Bharti Airtel, Tech Mahindra, RIL, Axis Bank, PowerGrid, Infosys, Yes Bank and HDFC Bank, rising up to 5 percent.
On the other hand, Vedanta, HUL, Hero MotoCorp, M&M, TCS, ONGC and Tata Steel fell up to 2 percent.
On Monday, the Sensex ended 72.50 points, or 0.18 percent, down at 40,284.19. Similarly, the broader NSE Nifty slipped 10.95 points, or 0.09 percent, to end at 11,884.50.
Foreign institutional investors offloaded shares worth Rs 270.66 crore in the capital market in the previous session, while domestic institutional investors purchased equities worth Rs 309.45 crore, data available with stock exchange showed.
Globally, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading on a mixed note amid uncertainty over US-China trade deal.
The rupee opened on a cautious note and fell 16 paise to 72 per US dollar in early trade on Tuesday amid rising demand for the US dollar vis-a-vis other currencies overseas and unabated foreign fund outflows.
On the currency front, the rupee depreciated 10 paise (intra-day) against the US dollar to trade at 71.94 in early session.
— CNBC-TV18 (@CNBCTV18Live) November 19, 2019
Forex traders said trading in emerging market currencies were subdued tracking cautious opening in domestic equities.
At the interbank foreign exchange, the rupee opened at 71.97 then fell to 72 against the US dollar, showing a decline of 16 paise over its previous close.
The Indian rupee on Monday had closed at 71.84 against the US dollar.
Traders were also awaiting fresh cues on the potential US-China trade deal.
Asian shares mixed as doubts grow on elusive US-China trade deal
Asian share markets were mixed on Tuesday, as another day awaiting clearer news on the progress of US-China trade negotiations left investors bereft of trading motivation.
MSCI’s broadest index of Asia-Pacific shares outside Japan inched 0.2 percent higher as hopes for stimulus in China lifted Shanghai blue chips by 0.8% and Hong Kong’s Hang Seng by 1%.
Japan's Nikkei .N225, however, shed 0.2 percent and South Korea's Kospi 200 dropped 0.3 percent. Australia's S&P/ASX 200 rose 0.4 percent.
Volumes were light across the board. E-Mini futures for the S&P 500 ESc1 were flat.
“It’s subdued today for sure,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank’s Asia Treasury Department in Singapore, adding that focus was by default on efforts to resolve the trade war between the world’s two biggest economies that has dented global growth.
“There are some lingering doubts over whether a phase one deal can be struck ... I think the suspicion is that there’s a lot more wrinkles to iron out than initially thought.”
Overnight, CNBC had reported the mood in Beijing was pessimistic about the prospects of sealing an agreement.
On the other hand, a new extension allowing US companies to keep doing business with Chinese telecoms giant Huawei suggested something of an olive branch.
Still, neither morsel shed much light on progress in US-China negotiations, and this week’s listless trading suggests optimism that resolution is near is beginning to run out of steam.
“We’re still waiting,” said Michael McCarthy, chief market strategist at brokerage CMC Markets in Sydney. “The longer we go on, the more concerns will arise. The reality is the clock is ticking.”
The next deadline in the dispute is 15 December, when another round of US tariffs on Chinese good is scheduled to take effect.
Wall Street’s main indexes traded mostly flat on Monday, looking for direction on trade, though they ended the day inching higher to record closing levels.
The Dow Jones Industrial Average rose 0.1 percent. The S&P 500 gained 0.05 percent, and the Nasdaq Composite added 0.1 percent.
The yield on benchmark 10-year Treasury notes US10YT=RR rose to 1.8118% compared with its US close of 1.808 percent on Monday.
Currency markets were similarly indecisive and range-bound. The safe-haven Japanese yen JPY= climbed as high as 108.45 per dollar before retreating to trade flat at 108.64.
The Australian dollar nudged 0.2 percent lower to $0.6793 after the central bank said it had seen a case for cutting rates this month.
The biggest mover overnight was the British pound which headed towards $1.30 as four polls showed Prime Minister Boris Johnson's Conservative Party tracking toward victory at the Dec. 12 election.
Sterling hit a one-month high of $1.2984 overnight, before retreating a little in Asian trade to settle around $1.2953.
Brent futures, the global oil benchmark, slipped 0.22 percent to $62.30 per barrel.
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Updated Date: Nov 19, 2019 10:48:33 IST