Sensex rallies 320 points; Ultratech jumps 5%

NSE Nifty closed 99.70 points up.

Market benchmark Sensex rallied over 320 points on Thursday, led by index-heavyweights Reliance Industries and HDFC twins as global markets logged robust gains.

The 30-share BSE index ended 320.62 points, or 0.78%, higher at 41,626.64. It hit an intra-day high of 41,649.29.

Similarly, the broader NSE Nifty closed 99.70 points, or 0.82%, up at 12,282.20.

Ultratech Cement was the top gainer in the Sensex pack, surging 4.37%, followed by Tata Steel, IndusInd Bank, L&T, Reliance Industries, SBI, HDFC, HDFC Bank, Axis Bank, ONGC and ITC.

On the other hand, Bajaj Auto, TCS, Infosys, NTPC, Nestle India, Kotak Bank and Hero MotoCorp fell up to 0.89%.

Traders said domestic investors followed Asian equities which rallied on Chinese central bank’s fresh stimulus for the country’s slowing economy.

Bourses in Shanghai and Hong Kong spurted up to 1.25%, while Seoul ended in the red.

Stock exchanges in Europe also opened significantly higher.

On the currency front, the rupee depreciated 11 paise against the US dollar to 71.33 (intra-day).

Brent futures, the global oil benchmark, advanced 0.42% to USD 66.28 per barrel.

Stock To Watch – General Mills

Shares of food company General Mills, Inc. (GIS) closed Tuesday’s trading at $53.56, close to its 52-week high of $56.40.

General Mills’ brands include Nature Valley, Betty Crocker, Annie’s organic snacks, Häagen-Dazs, Cheerios, and Pillsbury among others.

In November last year, the company achieved its 20% sodium reduction goal across all 10 key U.S. product categories, that was announced in 2010.

Last month, the Fortune 100 multinational company reported better- than- expected adjusted earnings of $0.95 per share in the second quarter. This was a 67% increase from the same quarter a year ago. The Consensus estimate stood at $0.88 per share. Revenue for the quarter was flat at $4.4 billion versus last year.

For FY2020, the company expects earnings, on an adjusted basis, to be in the range of $3.31- $3.38 per share. This compares with the Street expectation of $3.38.

Pair of small earthquakes rattle California

A pair of small earthquakes hit the California region on Thursday morning. According to the U.S. Geological Survey, a magnitude 4 earthquake struck 15.5 miles south of Port Hueneme, hours after a magnitude 3.9 quake struck 5.8 miles northeast of Morgan Hill.

Oil Prices Rise On Trade Deal Hopes

Oil prices kicked off the new year on a positive note Thursday amid fresh optimism about a U.S.-China trade deal and an uptick in political unrest in the Middle East.

Benchmark Brent crude rose by 0.55 percent to 66.36 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 0.3 percent at $61.24 per barrel.

The upswing in prices was supported by hopes that the U.S.-China trade deal will bolster oil demand in 2020.

Trade tensions eased after U.S. President Donald Trump said that an initial trade deal with China would be signed on Jan. 15 at the White House, and that he would later travel to Beijing to begin negotiations on the next phase.

News of monetary policy easing by China also helped improve demand outlook for the commodity.

China’s central bank announced a cut in banks’ reserve requirement ratio by 50 basis points on Jan. 6, a move that frees up more money for banks to lend to small businesses.

Geopolitical developments also remained in focus following U.S air strikes against the Iran-backed Katib Hezbollah militia group over the weekend.

North Korean leader Kim Jong Un declared an end to moratoriums on nuclear and intercontinental ballistic missile tests and threatened a demonstration of a “new strategic weapon” soon.

Gold, silver rise marginally on weak rupee

On the first day of the new year trade, the yellow metal had closed at ₹39,854 per 10 gram.

Gold prices appreciated by ₹38 to ₹39,892 per 10 gram in the national capital on Thursday, mainly supported by weaker rupee, according to HDFC Securities.

On the first day of the new year trade, the yellow metal had closed at ₹39,854 per 10 gram.

Silver prices also gained by ₹21 to ₹47,781 per kg, compared to ₹47,760 per kg in the previous trade.

HDFC Securities Senior Analyst (Commodities) Tapan Patel said spot gold for 24 karat in Delhi were trading marginally up by ₹38 supported by weaker rupee.

The rupee fell 11 paise to 71.33 against the US dollar (intra-day).

In the global market, gold quoted at USD 1,520 per ounce and silver at USD 17.85 per ounce.

China to cut bank reserve requirements

BEIJING–China’s central bank said it would reduce the portion of deposits commercial banks are required to set aside as reserves, releasing billions of dollars to the financial system to help boost economic growth.

The People’s Bank of China said Wednesday that it would lower its reserve requirement ratio for all banks by 0.5 percentage point, effective Jan. 6, injecting more than 800 billion yuan ($114.9 billion) into the financial system.

The move, which was widely expected, came after Chinese Premier Li Keqiang last month pledged to encourage more bank loans to the nation’s cash-strapped small companies.

The official reserve requirement ratio for most large banks will fall to 12.5% from 13% after the cut takes effect, while the ratio for smaller lenders will drop to 10.5% from 11%.

Beijing has in recent months stepped up efforts to boost a weakening economy by pouring more funds into infrastructure, among other measures.

–Liyan Qi, Grace Zhu

Sensex rallies 320 points; Nifty closes at fresh high

Ultratech Cement was the top gainer in the Sensex pack, surging 4.37 per cent, followed by Tata Steel, IndusInd Bank, L&T, Reliance Industries, SBI, HDFC, HDFC Bank, Axis Bank, ONGC and ITC.

Market benchmark Sensex rallied over 320 points while the Nifty ended at its fresh lifetime high on Thursday, led by index-heavyweights Reliance Industries and HDFC twins as global markets logged robust gains.

The 30-share BSE index ended 320.62 points, or 0.78 per cent, higher at 41,626.64.

It hit an intra-day high of 41,649.29.

Similarly, the broader NSE Nifty closed 99.70 points, or 0.82 per cent, up at 12,282.20 — its all-time high.

Ultratech Cement was the top gainer in the Sensex pack, surging 4.37 per cent, followed by Tata Steel, IndusInd Bank, L&T, Reliance Industries, SBI, HDFC, HDFC Bank, Axis Bank, ONGC and ITC.

On the other hand, Bajaj Auto, TCS, Infosys, NTPC, Nestle India, Kotak Bank and Hero MotoCorp fell up to 0.89 per cent.

Traders said domestic investors followed Asian equities which rallied on Chinese central bank’s fresh stimulus for the country’s slowing economy.

Photograph: Shailesh Andrade/Reuters