Markets remain upbeat as Mideast tensions recede; earnings in focus

Friday, 10 January 2020

After rallying 323 points during the day, the 30-share BSE Sensex pared some gains to end 147.37 points, or 0.36 per cent, higher at 41,599.72.

MUMBAI: Equity markets closed in the green for the second straight day on Friday as investors looked beyond geopolitical turbulence and wagered on a positive start to the earnings season.

After rallying 323 points during the day, the 30-share BSE Sensex pared some gains to end 147.37 points, or 0.36 per cent, higher at 41,599.72.

The broader Nifty scaled a fresh intra-day record of 12,311.20, before ending 40.90 points, or 0.33 per cent, up at 12,256.80.

During the week, the Sensex advanced 135.11 points or 0.32 per cent, while the Nifty rose 30.15 points or 0.24 per cent.

With US-Iran tensions cooling off, focus has now shifted to quarterly earnings and the Union Budget, traders said.

Investors are expecting measures from the government to revive the economy which has led to broad-based participation in equities, they added.

Infosys was the top gainer in the Sensex pack, spurting 1.47 per cent ahead of its quarterly results.

Announcing its earnings after market hours, the country's second-largest IT services major reported a 23.7 per cent rise in consolidated net profit at Rs 4,466 crore for the December quarter.

Other gainers included Ultratech Cement, Maruti, Kotak Bank, Asian Paints and HUL.

ICICI Bank, IndusInd Bank, Titan and Bharti Airtel were among the losers, shedding up to 1.11 per cent.

"Indian markets continued to rally on the back of buoyant global markets, correction in crude prices and INR appreciation. While the headline index is almost at all-time highs, the constituents fuelling the rally have changed significantly.

"The market is witnessing rotation from high quality financial and consumer stocks to a high beta industrial and infrastructure stocks. Further, high beta mid-caps and small caps have fared very well since beginning of 2020," said Hemang Kapasi, Portfolio Manager - Equity Investment Products, Sanctum Wealth Management.

BSE realty, metal, FMCG, auto, capital goods and IT indices rose up to 1.86 per cent, while consumer durables and telecom finished lower.

The broader BSE midcap and smallcap indices ended up to 0.42 per cent higher.

Global equities climbed on Friday as Mideast tensions abated and focus shifted to the upcoming US-China trade deal signing.

The US will sign the first phase of the much-anticipated trade deal with China probably on January 15, President Donald Trump said on Thursday.

Bourses in Hong Kong, Tokyo and Seoul ended up to 0.91 per cent higher, while Shanghai closed with losses.

European markets started on a tepid note.

Brent crude oil futures slipped 0.31 per cent to USD 65.17 per barrel as supply concerns eased.

The rupee appreciated 18 paise to 71.03 per US dollar (intra-day).

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