Sensex, Nifty Climb Despite Weak Global Cues On GST Hopes 

Indian shares shrugged off weak global cues and climbed higher as investors assessed corporate earnings, while pinning hopes that the deadlock over the GST bill will finally end.

The all-powerful GST Council, headed by Arun Jaitley, is meeting for the ninth time today with the issue of who gets to administer GST being the single biggest issue on agenda. Analysts believe GST would transform India into a single market, boost revenues through better compliance and simpler procedure.

The S&P BSE Sensex gained 0.2 percent to 27,288 while the NSE Nifty gained 0.1 percent to 8,412. This is the 50-share index third straight close above the psychologically important 8,400-mark.

The market breadth was also encouraging with more buyers than sellers. About 939 stocks advanced, 685 declined and 296 remained unchanged.

A gauge of country’s twelve largest banks gained for an eighth consecutive trading session. The Nifty Bank Index has advanced 5.4 percent since January 5, compared to 1.7 percent gain in the broader Nifty index.

Shares of the housing finance company rose 5.2 percent to Rs 284, its eighth session of gains, after reporting its third quarter earnings.

The company’s net income jumped 32 percent to Rs 245 crore for quarter-ended December, compared to Rs 186 crore same period last year.

• Revenue Rs 2,366 crore versus Rs 1,880 crore
• Total cost Rs 1,990 crore versus Rs 1,600 crore
• Firm sanctioned Rs 9,460 crore of loans in Q3; up 2 percent YoY
• Q3 loan disbursement +10 percent YoY to Rs 7,060 crore
• Approves fund raising plan via issue of bonds, pref. shares
• To raise up to Rs 750 crore via pref. share issue; to raise total Rs 6,000 crore via issue of secured, unsecured and subordinate NCDs

India's wholesale prices rose 3.39 percent year-on-year in December, government data showed. The data compared with a 3.50 percent annual rise forecast by economists in a Bloomberg poll.

In November, prices rose a provisional 3.15 percent.

• October inflation rate revised to 3.79% from 3.39 percent earlier.
• Food inflation rate -0.7% YoY
• Fuel and power inflation rate +8.65% YoY

Gitanjali Gems: Double Digit Gains

• Stock gained as much as 11 percent after gaining 4.25 percent on Friday
• Volumes are over 3 times its 20-day average
• The stock is currently in the overbought zone with RSI above 70

Gains in base metal prices such as copper, aluminium and zinc help stocks regain momentum. The S&P BSE Metal Index rose little over 1 percent after declining on Friday and was the best performing sectoral gauge on the exchange.

Jubilant Industries Surges On High Volumes

• Jubilant Industries gained 8 percent today
• The stock is up for second consecutive session. It registered gains of around 16 percent in previous session.
• Today's volume is 9 times its 20-day average volume on the NSE.

Shares of logistics companies gained anywhere between 4 percent and 0.4 percent ahead of a crucial meeting to break the deadlock over distribution of powers between the Centre and states to administer the Goods and Services Tax (GST).

The all-powerful GST Council, headed by Arun Jaitley, will meet for the ninth time on Monday with the issue of who gets to administer GST being the single biggest issue on agenda. (For more details on the meet, click HERE)

Top Gainers

• Snowman Logistics (+4.1%)
• Gateway Distripark (+2%)
• Gati (+1.5%)
• Sical Logistics (+3%)
• Patel Integrated (+1.8%)
• VRL Logistics (0.8%)
• Allcargo Logitics (+0.5%)

The rupee weakened 10 paise to 68.26 against the U.S. dollar in early trade today at the Interbank Foreign Exchange on increased demand for the American currency from banks and importers.

Dealers attributed the rupee's fall to dollar's strength against some other currencies overseas and a lower opening of the domestic equity market.

On Friday, the rupee fell by 8 paise to close at 68.16 against the US currency on fresh bouts of dollar demand from banks and corporates amid capital outflows.

PTI

Indian shares declined on the first day of the week tracking weak trade in Asian equities on concerns that the U.K. is preparing for a hard exit from the European Union.

The S&P BSE Sensex dropped 0.2 percent to 27,172 while the NSE Nifty lost 0.3 percent to 8,374. The market breadth was skewed in favour of the buyers with 726 stocks advancing, 691 declining and 473 remaining unchanged.

Movers & Shakers: Hindustan Petroleum, Coal India, Reliance Industries And More

• Coal India: Raises coking coal prices by 20 percent to boost revenue
• DCB Bank: Q3 profit Rs 51.3 crore versus Rs 41.2 crore YoY
• Indian Oil: Raises gasoline price by 42 paisa per litre
• Infomedia Press: Q3 loss Rs 87 lakh versus Rs 1.18 crore loss
• Maruti Suzuki: Prices Ignis Hatchback starting Rs 4.59 lakh
• Multi commodity: Q3 net Rs 33.94 crore versus Rs 17.51 crore
• Network 18 Media: Q3 loss Rs 50.26 crore versus Rs 22.1 crore profit; to merge 14 wholly-owned units with itself
• Reliance Defence: Appoints Kartik Subramaniam as CEO
• Shree Renuka: To consider extension of repayment for NCDs
• TV18 Broadcast: Q3 profit Rs 30.51 crore versus Rs 49.71 crore; to merge three wholly-owned units with itself
• ITC: To launch safe spices under Masterchef brand (Business Standard)
• Tata Steel: Discusses separating U.K. pension programme
• Dewan Housing: To consider raising funds via preference shares

For a complete list of stocks to watch, click HERE

Earnings To Watch

• Dewan Housing Finance Corp.
• Geometric
• LIC Housing Finance
• Reliance Industries

• Ambani pumps in $4.4 billion into Jio as free services continue
• Government said it respects RBI’s autonomy, independence
• Sebi eases rules for municipal bond issuance; allows mutual funds to invest in REITs, infrastructure trusts
• India Dec. exports +5.7 percent YoY to $23.9 billion; imports +0.5 percent YoY to $34.3 billion; trade deficit at $10.4 billion versus estimated $10.8 billion
• Kenya signs $100 million line of credit with India for agriculture
• India seeks adviser for disinvestment of state-run PDIL
• India November services exports at $13.3 billion, imports at $8.32 billion: RBI
• Forex reserves fell $1.14 billion to $359.2 billion in week to January 6: RBI
• India reservoirs hold 27 percent more water than a year earlier
• Global funds sell Rs 118 billion of local stocks; domestic funds sell Rs 474 crore on January 13: Provisional data
• India company earnings to lag consensus view: Credit Suisse
• India may finalise bank capital infusion plan this week (PTI)
• India considers raising FDI limit in print media (PTI)
• India may raise tax incentives on home loans (Times of India)
• India considers levying tax on junk food (Hindustan Times)
• India to resolve triple tax for country-focused funds (Business Standard)
• Cyrus Mistry seeks SEBI intervention in battle with Tata (Business Standard)
• Arcelormittal’s Rs 50,000 crore mining plan fails to get India nod (Economic Times)
• RBI staff flags autonomy issues at central bank (Economic Times)
• Foxconn, Sharp mull LCD plant in India (Nikkei)

The rupee fell for a fifth week last week, the longest streak of declines since November 2015. Volatility in Asian currencies is likely to pick up later this week as the U.S. President-elect Donald Trump’s inauguration may unveil some much-awaited details on his economic policies.

The U.S. markets are closed for a bank holiday today.

Investors will be watching for the Indian wholesale prices due later today. A rising trend in the wholesale price index may indicate that the retail inflation has bottomed out.

Also, international funds on Friday cut Indian bond holdings by about $285 million, while adding Indonesian debt.

Good Morning!

The Nifty futures on the Singapore Stock Exchange, an early indicator of Nifty’s performance in India, fell 0.3 percent to 8,396.

Asian equities declined this morning, along with the pound on a report that the U.K. Prime Minister Theresa May will signal plans to quit the European Union’s single market to regain control of Britain’s borders and laws.

Sterling declined as much as 1.6 percent against the greenback after the Sunday Times said that May will prepare to withdraw from tariff-free trade with the region in return for the ability to curb immigration and trike commercial deals with other countries.

However, it pared some of its losses on a Times of London report that U.S. President-elect Donald Trump will offer a quick trade deal to Britain when he assumes power on January 20.

U.S. stocks ended mostly higher on Friday, after major U.S. banks kicked off the fourth-quarter earnings season with strong results, helping fuel confidence about a recent market rally.

Meanwhile, crude oil rose 0.4 percent, above $55 a barrel, while gold climbed 0.5 percent, extending last week’s surge to trade at $1,203.55 an ounce.