The Nifty could hit a fresh record high above 12,337 on January 14 tracking the positive trend seen in other Asian markets. But rising inflation could act as a near term headwind for Indian markets.
The Asian share markets rallied as signs of goodwill between China and the United States supported optimism for global growth. The world’s two biggest economies are prepared to formalise a trade-war truce, Reuters reported.
Japan's Nikkei added 0.8 percent and hit its highest point in a month, while Australia's S&P/ASX 200 rose 0.7 percent and touched a fresh record intraday high.
Overnight, Wall Street hit a record highs on January 13, fueled by optimism about the signing of a preliminary US-China trade deal, as well as the upcoming fourth-quarter earnings reports.
Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 31.5 point or 0.25 percent gain. The Nifty futures were trading around 12,389-level on the Singaporean Exchange.
A look at the final tally on D-Street showed – the S&P BSE Sensex rose 259 points to 41,859 while the Nifty50 rallied 72 points to close at 12,329.
Retail inflation accelerated to its highest level in more than five years, increasing the likelihood of an extended pause in the central bank’s rate-cutting cycle, Reuters reported.
Retail inflation has now breached the Reserve Bank's medium-term target of 4 percent for the third straight month.
Sectorally, the action was seen in the S&P BSE Realty index, followed by the S&P BSE IT index, Telecom, and FMCG index.
The rupee rose 8 paise to settle at 70.86 against the US Dollar on January 13 as investor sentiment strengthened amid positive global cues and gains in the domestic equity market.
Foreign institutional investors (FIIs) bought shares worth Rs 68.24 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 47.17 crore in the Indian equity market on January 13, as per provisional data available on the NSE.
Big News:
As many as 12 stocks on the BSE will report their results for the December quarter. These include Bandhan Bank, IndusInd Bank, MindTree and Wipro among others.
IndusInd Bank: PAT likely to grow by 53 percent year-on-year (YoY)
Wipro: PAT likely to fall by -2.4 percent YoY
MindTree: PAT likely to fall by -3.2 percent YoY
(All estimates from Motilal Oswal)
Stocks in news:
Veteran investor Ashish Kacholia bought 40,00,000 shares of Religare Enterprises through a bulk deal on the NSE on January 13, data on the exchange showed.
Infosys: The company partnered with France-based GEFCO to support its digital transformation.
JSW Steel: The National Company Law Appellate Tribunal (NCLAT) on January 13 directed the Enforcement Directorate (ED) and other investigative agencies to clarify whether JSW Steel, the successful bidder for the debt-laden Bhushan Power and Steel, would have immunity for offences committed by the previous management under a December ordinance.
Technical Recommendations:
We spoke to Religare Broking and here is what they have to recommend:
Colgate Palmolive (India) | Buy | LTP: Rs 1,476.65 | Target : Rs 1,525 | Stop loss: Rs 1,450 | Upside: 3.27%
REC | Buy | LTP: Rs 143.50 | Target: Rs 150 | Stop loss: Rs 139 | Upside: 4.5%
Shriram Transport Finance Company | Buy | LTP: Rs 1,164.15 | Target: Rs 1,220 | Stop loss: Rs 1,125 | Upside: 4.8%
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