Daily Market Commentary : 28th Dec. 2016

The Sensex, Nifty closed flat after paring all of their intraday gains in the last hour of trade dragged lower by a sell-off in oil and gas companies on Wednesday and ahead of the expiry of futures and options contracts of the December series due tomorrow. Weak global cues and a weak rupee dampened the sentiment.

Today, the Union Cabinet approved the Ordinance on deadline to deposit old notes. The name of the Ordinance is ‘The Specified Bank Notes Cessation of Liabilities Ordinance’. The Cabinet headed by PM Narendra Modi also approved an ordinance to amend the RBI Act to extinguish the liability of the government and the central bank on the demonetised high-denomination notes to prevent future litigations, as per media reports.

NSE Nifty closed with a marginal gain of two points at 8,035, while BSE Sensex ended with a mere loss of three points at 26,211.

On the global front, Asian markets were trading in green as many regional markets resumed trading after the long holiday weekend. While a weaker yen, higher oil prices and upbeat U.S. consumer confidence and housing data lent some support, new regulatory measures unveiled in China to bring insurers under strict supervision served to limit the potential upside to some extent. Shanghai Composite and Nikkei 225 closed lower, while Hang Seng added 1% to 21,575.

European markets were trading mostly in green after upbeat U.S. economic data reinforced investor expectations for stronger economic growth under Trump presidency. FTSE100 was trading higher by 0.32%, whereas CAC40 and DAX is in red.

On the economy front, Viral Acharya was appointed by the Government as the Deputy Governor of the Reserve Bank of India for a term of three years.

R.P.P. Infra Projects hit 20% upper circuit after the company bagged two orders from Kamarajar Port Limited and Chennai Corporation worth Rs 24.2 crore and Rs 30 crore respectively.

Sunil Hitech Engineers climbed 5% on the BSE after the company won an order worth Rs 434 crore from National Highways & Infrastructure Development Corp.

Cupid rose 5.3% after the company has informed BSE that a meeting of the Board of Directors will be held on January 5, 2017, to consider the proposal for raising funds through issue of securities and also to increase authorised capital of the Company.

Bharat Financial Inclusion zoomed 10.5% on the BSE. Morgan Stanley has acquired 1.1% stake in the company via open market purchase on December 23. Total holding by Morgan Stanley in the company has increased to 7.86% as on December 23.

Bharti Infratel soared 2.3% to Rs 339.30 on the BSE. Goldman Sachs has reportedly upgraded the rating on Bharti Infratel to ‘neutral’ from ‘sell’ following the recent fall in the stock price, as per media reports. The stock was the top Nifty gainer today.

Dhanuka Agritech inched up 1.4% after informing BSE that a Meeting of Buyback Committee of Board of Directors of the company will be held on January 3, 2017, to approve the final terms and conditions of Buyback of equity shares of the company, subject to Shareholders’ approval.

The rupee was trading down 14 paise at 68.20 per US dollar.

Out of 1,396 stocks traded on the NSE, 470 declined and 857 advanced today.

Top 5 Nifty Gainers: ONGC (1.24%), GAIL (0.86%), TCS (0.83%), HDFC (0.82%) and Asian Paints (0.75%).

Top 5 Nifty Losers: Adani Ports & Sez (-1.45%), ITC Ltd (-0.87%), Bajaj Auto (-0.54%), Hero Motocorp (-0.37%) and Coal India (-0.37%)

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