Sensex reclaims 36,000, Nifty ends at 10,860 led by financials

Firm global cues and buying in financial and pharma counters helped domestic benchmark indices settle in the positive territory for the third consecutive session on Friday.

The S&P BSE Sensex gained 269 points or 0.75 per cent to close at 36,077 while the NSE’s Nifty50 index ended at 10,860, up 80 points or 0.74 per cent. Out of 50 constituents on the index, 38 ended in the green and rest 12 in the red.

Volatility benchmark India VIX declined over 6 per cent to 15.03, indicating lower volatility in the market.

As many as 8 stocks hit 52-week high on NSE including names such as Bata India and SPL Industries. On the contrary, 48 securities hit their one-year low.

On a weekly basis, both the headline indices rose around 1 per cent.

Among individual stocks, Lemon Tree Hotels ended 9 per cent higher at Rs 75 apiece on BSE after the company has formed a joint venture (JV) with an affiliate of Warburg Pincus, a leading global private equity firm, to create a co-living platform. The stock climbed as much as 12 per cent in the intra-day trade. The JV marks Lemon Tree Hotel, lndia’s largest hotel chain in the mid-priced sector, entry into an adjacent but new business segment focusing on the development of institutional-grade rental housing accommodation serving both students and young working professionals across major educational clusters and key office markets in India.

Real estate developer Peninsula Land surged 12 per cent in the intraday trade after it entered into an agreement to acquire 86 per cent of equity shares of Rockfirst Real Estate, thereby making it a wholly-owned subsidiary of the company. The stock eventually settled at Rs 11.34 apiece on BSE, up 5 per cent.

Sectorally, media stocks gained the most with the Nifty Media index rising 48 points or nearly 2 per cent to settle at 2,556. Pharma and financial stocks came second on the list.

In line with benchmarks, the broader market, too, gained around 1 per cent. The S&P BSE MidCap index ended at 15,360, up 0.93 per cent while the S&P BSE SmallCap index rose 0.86 per cent to settle at 14,606.

Shares of select public sector undertaking (PSU) banks were trading higher for the third straight day on the report that the central government would release Rs 286.15 billion before the end of this month towards a fresh tranche of funds to recapitalise state-run banks. The sharp moderation in bond yields should significantly boost the treasury performance of the banking sector, especially public sector banks (PSBs).

Coal India has rebounded more than 5 per cent from its lows, seen at start of the month. Though this has been helped by a strong interim dividend of Rs 7.25 a share, concerns on fundamentals remain. While softening international coal prices could put pressure on more profitable e-auction premiums, tepid volume growth could weigh on e-auction volumes. Coal India had reported sales volume growth of 6.5 per cent during the April to November period.

Shares of Future Retail, the flagship company of Future Group, have slipped 6 per cent to Rs 484 per share, extending their decline in the past two days in an otherwise firm market. In the past three trading days, the stock slipped has 14 per cent after the government on Wednesday tightened rules for e-commerce companies. In comparison, the S&P BSE Sensex was up 2 per cent during the same period.

Shares of 5paisa Capital (5PCL) is locked in the upper circuit of 10% at Rs 223 on Friday, surging 17% in past two trading days, after Nirmal Jain, the promoter of the company hiked his stake through an open market purchase. On Wednesday, December 26, Nirmal Bhanwarlal Jain had purchased an additional 50,000 equity shares of 5PCL through an open market purchase.

Here are some picks from the week gone by.

Company: Havells India CMP: 689.35 Mastermind

Company: IDFC Ltd. CMP: 42.95 Mastermind

Company: HEG Ltd. CMP: 3685.00 Mastermind

Company: Ashok Leyland CMP: 102.95 Mastermind

Company: DLF Ltd. CMP: 177.70 Mastermind

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