CNBC-TV18 Market HIGHLIGHTS: Sensex, Nifty settle with gains as HDFC twins, RIL lead the bulls

Thank you readers! Here are the main highlights from the markets at close##Thank you readers! Here are the main highlights from the markets at close

Thank you readers and before we sign out of this blog, here are the main highlights from today’s session. Do log in tomorrow as well for our rolling day coverage of live markets.

-Market closes in the green but off highs 
-Sensex slips 361 points from highs to close with a gain of 193 points
-Nifty ends 60 points higher after a 147-point trading range
-Nifty Bank falls 452 points, Midcap Index 138 points from highs
-Except PSU Bank all sectoral indices close with gains; Realty top gainer 
-Infosys under pressure ahead of result on January 10
-ONGC and IOC slip on reports of cos being asked to take part in BPCL share sale
-Zee Entertainment up over 2 percent after CLSA has co as top media pick
-Reliance gains nearly 2 percent to close the session above 50-DMA
-NMDC closes 1 percent lower amid volatility on Donimalai uncertainty

Sensex heatmap at close: UltraTech Cement, RIL top gainers, Infosys top loser##Sensex heatmap at close: UltraTech Cement, RIL top gainers, Infosys top loser

Closing Bell: Sensex, Nifty end with gains led by HDFC twins, Reliance Industries##Closing Bell: Sensex, Nifty end with gains led by HDFC twins, Reliance Industries

Domestic stock markets settled on a positive note on Tuesday, as oil prices eased due to a lack of further escalation in Middle East tensions. The S&P BSE Sensex index ended 192.84 points or 0.47 percent higher at 40,869.47, while the broader NSE Nifty benchmark closed 67.25 points or 0.56 percent higher at 12,060.30. Gains in realty, banking and metal stocks pushed the domestic markets higher. READ MORE

Bombay Burmah at day's high; stock up more than 4% in the last hour##Bombay Burmah at day's high; stock up more than 4% in the last hour

Why farm loan waiver might be good politics but is surely bad economics##Why farm loan waiver might be good politics but is surely bad economics

The Maharashtra government on December 21 announced a loan waiver of up to Rs 2 lakh for farmers with a cut off date of September 30, 2019, and providing relief to non-defaulting farmers who have a loan above Rs 2 lakh.

The cost of this farm loan waiver would be at least Rs 45,000 crore, according to analysts. Maharashtra has a large share of agriculture credit in the country and it also has the largest contribution to agriculture Non-Performing Assets (NPAs) in the country as per RBI data.

Around 15 percent of overall agriculture NPLs in the country are contributed by Maharashtra.

Analysts believe farm loan waiver is the moral hazard and it undermines credit discipline among farm loan borrowers.

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On a journey towards IPO for Biocon Biologics, says Kiran Mazumdar Shaw##On a journey towards IPO for Biocon Biologics, says Kiran Mazumdar Shaw

Kiran ​Mazumdar Shaw, founder of Biocon Limited, on Tuesday, said that Biocon Biologics, a subsidiary of the company, is on a journey towards its IPO. "We are on a journey to an IPO for Biocon Biologics business," she said.

According to her, Biocon Biologics is set to achieve $1 billion in revenue by FY22 as “the opportunities are very well marked out".

Private equity fund True North has picked up a 2.44 percent stake in Biocon Biologics for more than Rs 530 crore. Mazumdar Shaw said that the first step is to get a benchmark equity valuation ahead of possible IPO for biologics arm.

“We might raise little more private equity prior to IPO. This basically gives an idea of where we believe we can unlock the value in terms of Biocon Biologics in the next few years,” she said in an interview with CNBC-TV18. READ MORE

Panama Petrochem's share price jumps over 14%##Panama Petrochem's share price jumps over 14%

The share price of Panama Petrochem rallied over 14 percent intraday on Tuesday after the company's promoter shareholding increased in December. 

At 2:30 pm, the stock price was trading 7.93 percent higher to Rs 66.70 per share on the NSE while on an intraday basis, the share price jumped 14.51 percent at Rs 70.80. 

In its BSE filing, it said, "Panama Petro's promoter shareholding increased to 72.82 percent in December as compared to 70.49 percent in September last year."

GM Breweries Q3 Earnings: Net profit and revenue declines 16.3% YoY and 3.9% YoY respectively##GM Breweries Q3 Earnings: Net profit and revenue declines 16.3% YoY and 3.9% YoY respectively

Liquor maker GM Breweries has reported a 16.3 percent year-on-year (YoY) decline in third-quarter (October-December) net profit, dented by lower revenue and operating income.

Profit after tax fell to Rs 14 crore in the quarter ended December 2019, compared to Rs 16.7 crore in the same period last year.

Revenue from operations during the quarter declined 3.9 percent to Rs 119.7 crore year-on-year, company said in its BSE filing.

At the operating level, earnings before interest, tax, depreciation and amortization (EBITDA) dropped 19.8 percent year-on-year to Rs 19.9 crore and margin contracted 330 bps YoY to 16.6 percent in the quarter ended December 2019.

Sources say that the Federation of All India Distributors Associations has written to the Commerce Ministry slamming modern trade and claims##Sources say that the Federation of All India Distributors Associations has written to the Commerce Ministry slamming modern trade and claims

Sources said;

1. FAIDA writes to Commerce Ministry, slams modern trade and claims
2. FAIDA modern trade and declining business pie hit distributor income by 20-25 percent
3. Over 30,000 FMCG distributors have exited business over the last year
4. Memberships declined to 4.2 lakh in January 2020 from 4.5 lakh in January 2019
5. FAIDA expects 20 percent further decline in pan-India distributor base in 1-2 years
6. Commissions have remained flat in the range of 3.5-5 percent
7. Increase in ‘service & network’ costs not proportionate to income generated
8. Say consumption slowdown, modern trade, FDI B2B outlets has dented business

Muthoot finance company MD attacked in Kerala, suffers head injury##Muthoot finance company MD attacked in Kerala, suffers head injury

The Managing Director of Muthoot Finance company was injured after miscreants allegedly pelted his vehicle with stones on Tuesday morning. George Alexander Muthoot, who suffered head injury has been admitted to a private hospital, police said.

A section of employees have been agitating against the Muthoot management over dismissal of 160 staff from the company's 43 branches across the state in December.

The protest is being held under the aegis of the Centre of Indian Trade Unions (CITU).

The Muthoot management alleged that "CITU goons" were behind the attack that occurred at around 9 am in front of IG office here. However, the CITU rejected the allegations, saying the trade Union outfit has no role in the incident.

"We don't believe in such type of violent mode of agitation", CITU leader Ananthalavattom Anandan told media. An official of the Confederation of Indian Industries Kerala chapter condemned the incident, saying "it is a matter of great concern".

Zee Entertainment will bring operating improvements in 2020, says CLSA##Zee Entertainment will bring operating improvements in 2020, says CLSA

Global brokerage firm CLSA retained 'buy' rating on the entertainment company, though it slashed the price target to Rs 360 from Rs 390 apiece.

"2019 was the end of the pledging crisis and 2020 will bring operating improvements," said the brokerage house which feels Zee is well placed to continue outperforming industry growth.

CLSA said 2020's key focus for the company will be on cash generation. "We see a turn in the company's cash flows from Q4 and forecasts 11 percent earnings CAGR over FY19-22."

At 12:40 pm, the stock price was trading 1.99 percent to Rs 266.70 per share on the NSE while on an intraday basis, the shares surged 3.76 percent at Rs 271.35.

RBI allows banks to trade in forex outside market hours##RBI allows banks to trade in forex outside market hours

The Reserve Bank of India on Monday permitted select banks to conduct foreign exchange trading beyond markets hours. The RBI allowed category-I banks to offer foreign exchange prices to users at all times, out of their Indian books, either by a domestic sales team or through their overseas branches.

Currently, banks are allowed to offer forex services between 9 AM and 5 PM. The order will allow forex trading round the clock.

Dealers hailed the move as a step in the right direction to help traders hedge their bets on the domestic front.

"Transactions beyond onshore market hours. Transactions with person resident outside India, through their foreign branches and subsidiaries, may also be undertaken beyond onshore market hours," the RBI said in a release.

The central bank said the decision came as it accepted the recommendation of the task force on the offshore rupee market.