Sensex Ends 437 Points Higher; IT & Smallcap Stocks Outperform

Wed, 23 Dec Closing

   Previous Close   

   09:30 am   

   12:30 pm   

Indian share markets extended gains as the session progressed and ended on a strong note.

Benchmark inched edged higher as a sharp rally in IT stocks helped overshadow weak global investor sentiment stemming from the rapid spread of a new strain of the coronavirus in the United Kingdom.

Sentiment also improved after reports suggested that India is likely to approve Oxford/AstraZeneca's coronavirus vaccine for emergency use by next week.

At the closing bell, the BSE Sensex stood higher by 437 points (up 0.95%).

The NSE Nifty closed higher by 135 points (up 1%).

HUL and Infosys were among the top gainers today.

The SGX Nifty was trading at 13,620, up by 134 points, at the time of writing.

The BSE Mid Cap index and the BSE Small Cap index ended up by 2.4% and 2.7%, respectively.

All sectoral indices ended in green. Gains were largely seen in the IT sector, FMCG sector and realty sector.

Asian share markets ended higher as investors bet the healthcare sector would continue to benefit from a prolonged battle with the coronavirus, while technology shares rose on signs that Apple was eying an entry into electric cars.

As of the most recent closing prices, the Hang Seng ended up by 0.9% and the Shanghai Composite stood higher by 0.8%. The Nikkei ended up by 0.3%.

US stock futures are trading higher today indicating a positive opening for Wall Street indices. Nasdaq Futures are trading up by 22 points (up 0.2%), while Dow Futures are trading up by 79 points (up 0.2%).

The rupee is trading at 73.72 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.1% at Rs 50,051 per 10 grams.

To know more about gold, you can check out our detailed article on investing in gold here: How to Invest in Gold?

Speaking of stock markets, in his latest video, India's #1 trader Vijay Bhambwani shares the reason behind the recent rally in silver prices and how you can profit from this opportunity.

Tune in here to find out more:

Also, speaking of stock markets, note that since the lows in March 2020, the smallcap index has gained more than 80%.

While caution is indeed warranted, Richa Agrawal, Research Analyst at Equitymaster, thinks there is still a lot more steam left to this smallcap rally.

Here's what she wrote in a recent edition of Profit Hunter...

• For one, the gap between Sensex and smallcap index is still huge.
  
  In January 2018, the smallcap to Sensex ratio was 0.57 times, versus a long term average of 0.44 times.
  
  At present, this ratio stands at 0.37 times, well below the long-term average.
  
  The possibility of a convergence between growth and value is a lot higher in the smallcap space, than in the large caps.
  
  And then here are some other interesting facts.
  
  Historically, the smallcap index, after a sharp correction, has risen up to 300%.

The above observations have served Richa's smallcap service Hidden Treasure well. Her first batch of essential stock recommendations have offered robust returns so far, as can be seen in the chart below:

While the margin of safety in valuations has come down in these stocks, Richa has recently added another stock to this list.

This company is the world's largest player in a niche segment and its product falls in the essential category. This global leader enjoys unique competitive advantages that are hard to replicate by its peers.

If you are interested in knowing more and in becoming a Hidden Treasure subscriber, here's where you can sign up.

In latest developments from the IPO space, the public offer by Antony Waste Handling Cell was oversubscribed by 7 times on December 23, the final day of bidding.

The company has joined the likes of Burger King India and Mrs Bectors Food Specialities to have received oversubscription in a few hours of opening for subscription.

Investors put in bids for 46.9 million equity shares against offer size of 6.7 million equity shares (excluding anchor book), the subscription data available on the exchanges showed.

However, the grey market premium of Antony Waste IPO has slipped from around Rs 160 two days ago to the range between Rs 26 and 30 today.

Retail investors continued to support the issue from the day one of bidding as their reserved portion was subscribed 12.53 times and that of non-institutional investors 1.64 times.

The portion set aside for qualified institutional buyers was subscribed 1.49 times.

The company has fixed price band for its public issue at Rs 313-315 per share.

Ahead of the IPO, the company garnered Rs 899.9 million from 10 anchor investors at an upper end of price band. Massachusetts Institute of Technology was the top anchor investor, accounting for 44.44% of the total anchor allotments.

Note that Antony Waste Handling is launching its IPO for the second time this year, after having to withdraw its maiden attempt in April due to tepid investor response amid the Covid-19 outbreak.

How the above IPO performs on listing day remains to be seen.

In news from the IT sector, Majesco was among the top buzzing stocks today.

Majesco share price was locked in 5% upper circuit at Rs 12.20 on the BSE after the stock turned ex-interim dividend for Rs 974 per share today.

The company has fixed Friday, December 25, 2020 as record date for the purpose of payment of interim dividend.

The board of directors of Majesco, at its meeting held on December 15, 2020, had approved an interim dividend of Rs 974 per equity share of face value of Rs 5 each for the financial year 2020-2021.

This interim dividend payout translates to an amount of Rs 27.9 billion on a shareholder base of 28.577 million shares.

The high dividend payout follows the sale of US arm which accounted for the bulk of its revenues and profits.

Apart from Majesco, shares of other IT companies continued their upward trend, with the BSE IT index hitting its respective fresh record high amid hopes of more large deal wins, which would further help accelerate the sector's growth momentum.

Shares of Tata Consultancy Services (TCS), Infosys, HCL Technologies, Tech Mahindra, L&T Infotech and Mphasis hit their respective fresh record highs.

Wipro surged over 5% to its 52-week high, after the company announced a significant strategic digital and IT partnership deal with METRO AG, the leading global wholesale company that is redefining the food service distribution industry.

The company also said its up to Rs 95-billion share buyback programme will commence on December 29 and close on January 11, 2021.

Last month, shareholders had approved Wipro's buyback plan for purchase of up to 237.5 million equity shares at Rs 400 per share.

The company has set December 11, 2020 as the record date for determining eligibility for the buyback.

The buyback will open on December 29, 2020 and close on January 11, 2021.

Speaking of buybacks, as a shareholder in cash rich companies, you should not only be wary of expensive buybacks. But if possible use it to your advantage to rake in some cash.

As per Rahul Shah, co-head of Research, investors should not assume buybacks are always good. Here's an excerpt of what he wrote in one of the editions of The 5 Minute Wrapup:

• The reason behind the buyback must be investigated. At the end of the day, an increase in earnings should be more a function of the inherent robustness of the business, as that's what will help it continue to grow at a healthy pace.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers