Key equity market barometers ended with minor gains after a see-saw session on Thursday. Trading was volatile on account of weekly index options expiry on the NSE. Investors booked some profits after the US and China signed a preliminary trade agreement on Wednesday, expectations for which had driven global equities to record highs.

The barometer BSE S&P Sensex rose 59.83 points or 0.14% to 41,932.56. The index rose 186.72 points, or 0.45% at the day's high of 42,059.45 in early trade, its record high. It fell 60.45 points, or 0.14% at the day's low of 41,812.28 in mid-morning trade.

The Nifty 50 index gained 12.95 points or 0.09% to 12,356.25. The index rose 45.75 points, or 0.37% at the day's high of 12,389.05, its record high. It fell 27.50 points, or 0.22% at the day's low of 12,315.80.

In the broader market, the BSE Mid-Cap index rose 0.77% and the BSE Small-Cap index rose 0.78%. Both these indices outperformed the Sensex.

The market breadth was positive. On the BSE, 1488 shares rose and 1065 shares fell. A total of 183 shares were unchanged.

Economy:

India's trade deficit narrowed 22.3% to $11.25 billion in December 2019 from $14.49 billion in the same month a year ago. Imports fell 8.8% year-on-year to $38.61 billion, the 7th straight drop. Exports fell 1.8% year-on-year to $27.36 billion, the 5th straight annual fall.

In April-December, the trade deficit narrowed sharply to $118.10 billion from $148.23 billion the same period in the previous fiscal year, the Ministry of Commerce & Industry said in a statement on Wednesday, 15 January 2020.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.613% at 16:45 IST compared with 6.623% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 70.985, compared with its close of 70.82 during the previous trading session.

In the commodities market, Brent crude for March 2020 settlement rose 28 cents to $64.28 a barrel. The contract fell 49 cents or 0.76% to settle at $64 a barrel during the previous trading session.

Foreign Markets:

Most European shares declined while most Asian markets ended higher on Thursday. President Donald Trump signed an initial phase one trade deal with China on Wednesday that will roll back some of the tariffs on one another's goods and increase Chinese purchases of U.S. products. Investors were still concerned as many of the key structural issues at the crust of the trade conflict remain unresolved as the two sides enter phase two.

In US, stock indexes closed higher on Wednesday afternoon, though the major benchmarks ended the day well off session highs, after President Donald Trump signed the first phase of a trade pact with China, marking a truce in the dispute over import tariffs which has unsettled markets world-wide and slower economic growth.

All three major benchmarks set record intraday highs, while the Dow and S&P 500 ended the session at record closing levels.

In economic data, US wholesale inflation rose 0.1% in December, according to the Labor Department's producer-price index. Year over year, producer prices rose just 1.3%, roughly half the rate in 2018.

Buzzing Indian Index:

The Nifty Metal index fell 1.32% to 2,884.85 on profit booking. The index rose 5.57% in the previous five trading sessions.

JSW Steel (down 2.23%), Hindalco Industries (down 1.92%), NALCO (down 1.76%), Tata Steel (down 1.54%), Vedanta (down 1.46%), Sail (down 1.17%), Jindal Steel & Power (down 0.69%) and NMDC (down 0.42%) declined. Hindustan Copper (up 0.96%) and Hindustan Zinc (up 0.28%), advanced.

Q3 Earnings:

Tinplate Company of India rose 2.88% after standalone net profit surged 198.9% to Rs 46.45 crore in Q3 December 2019 as against Rs 15.54 in Q3 December 2018. Profit before tax (PBT) rose 10.5% to Rs 29.45 crore in Q3 December 2019 from Rs 26.65 crore in Q3 December 2018. Net sales fell 14.1% to Rs 494.69 crore in Q3 December 2019 from Rs 576.19 crore in Q3 December 2018. Net profit surged on account of lower expenditures and taxes. Total expenditure shrunk 16.6% to Rs 492.69 crore in Q3 December 2019 over Q3 December 2018, mainly on account of falling raw materials costs.

Den Networks rose 1.27%. The cable TV and broadband service provider reported a consolidated net profit of Rs 19.36 crore in Q3 December 2019 compared with net loss of Rs 32.38 crore in Q3 December 2018. Consolidated profit before tax (PBT) stood at Rs 39.10 crore in Q3 December 2019 as against a loss of Rs 26.45 crore in Q3 December 2018. Net sales rose 3.1% to Rs 318.08 crore in Q3 December 2019 over Q3 December 2018. The Q3 result was declared after trading hours yesterday, 15 January 2020.

Sterlite Technologies fell 4.69% after net profit declined 63.85% to Rs 52.63 crore on 9.9% fall in net sales to Rs 1202.66 crore in Q3 December 2019 over Q3 December 2018. EBITDA fell 18.75% to Rs 247 crore in Q3 December 2019 as against Rs 304 crore in Q3 December 2018. The result was announced after market hours yesterday, 15 January 2020.

Reliance Industrial Infrastructure fell 0.86%. after consolidated profit before tax fell 16.8% to Rs 2.68 crore in Q3 December 2019 over Q3 December 2018. Consolidated net profit jumped 12.8% to Rs 2.46 crore on 5.7% decline in net sales to Rs 19.98 crore in Q3 December 2019 over Q3 December 2018. Tax expense slumped 46.7% to Rs 0.98 crore in Q3 December 2019 over Q3 December 2018. The Q3 result was announced after market hours yesterday, 15 January 2020.

Stocks in Spotlight:

Bharti Airtel advanced 1.34% to Rs 474 after the company said it has raised $2 billion through the QIP route, which saw participation by highly reputed global and Indian investors. The company will issue 32,35,95,505 equity shares of face value of Rs 5 per equity share at Rs 445. Post the QIP issue, the holding of promoter and promoter group will be 58.98% as against 62.70%.

Granules India surged 5.46%. The company's board will meet on 21 January 2020 to consider a proposal for buyback of equity shares.

Dishman Carbogen Amcis hit 5% upper circuit at Rs 88.95 ahead of the company's board meeting scheduled today, 16 January 2020, to consider buyback of shares.

Asian Paints fell 0.37% to Rs 1834.95 after the Competition Commission of India (CCI) ordered a probe against the company for unfair business practices. CCI ordered a probe against Asian Paints allegedly hindering the entry of JSW Paints by virtue of its dominance in the market for manufacture and sale of decorative paints. The order came after JSW Paints filed a complaint alleging that Asian Paints threatened various dealers in Karnataka, Telangana and Tamil Nadu from dealing with JSW Paints.

Alphageo (India) hit 10% upper circuit at Rs 201.45. The company has bagged two orders worth Rs 112 crore from ONGC.

Wockhardt jumped 5.71%. Indian drug regulator, DCGI, has approved Wockhardt's two new antibiotics, EMROK (IV) and EMROK 0 (Oral), for acute bacterial skin and skin structure Infections including diabetic foot infections and concurrent bacteraemia based on the Phase 3 study involving 500 patients in 40 centres across India. The new drug will target superbug like Methicillin resistant Staphylococcus aureus (MRSA), which is a leading cause of rising antimicrobial resistance (AMR). The statement was released during market hours today, 16 January 2020.

Camlin Fine Sciences was locked in a lower circuit of 5% at Rs 78.95 after the company said its manufacturing unit in Tarapur received closure notice from Maharashtra Pollution Control Board. The closure will be enforced within 72 hours from receipt of the closure direction on 15 January 2020. The direction was issued on account of certain alleged irregularities by the company in complying with Maharashtra Pollution Control Board (MPCB)'s terms and conditions.

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