Inflation Reduced to 2.17%; Market Stable

Share Market News 14 June- 2017

Todays market opened positive due to positive news from RBI on NPA front but the market started to stabilise in the afternoon session after WPI numbers were positive. Sensex gained 52.42 points to 31155.91; Nifty gained 11.25 points to 9618.15.

Top Gainers

Reliance by 3.47% to 1360, Bank Of Baroda by 1.77% to 172.75, Dr.Reddy by 1.35% to 2662.05, Hindustan Unilever by 1.34% to 1117.50 And ICICI Bank by 1.32% to 319.

Top Losers

Yes Bank by 3% to 1449, Cipla by 2.25% to 539.15, ITC by 1.79% to 299.80, HDFC by 1.23% to 1647.10 And ACC by 1.20% to 1596.35.

Analysis of Top Gainer and Loser

Reliance is the Top Gainer in today's market as its subsidiary Reliance Jio Infocomm outperformed all its peers in April by adding about 4 million new users to reach a consumer base of 112.55 million. According to the data released by the Telecom Regulatory Authority of India (TRAI) which reported an increase in the company's user market share to 9.58%, from 9.29% in March.

Yes Bank is the top loser in today's market due to some profit booking that was seen in the stock and the price is consolidating at the current level. However, Yes Bank Ltd received the highest rating of 94 out of 100 in a compliance survey for 2016-17 conducted by the Banking Codes and Standards Board of India (BCSBI). In the category of information dissemination, transparency, customer centricity, grievance redressal, customer feedback.

Key Market News

According to data released by commerce ministry, wholesale inflation declined to 2.17% during May from 3.85% in April, as a result of plunging vegetable and onion prices that have become symbolic of rural distress across many states. Data released by ministry according to new series of 2011-12 as the base year, replacing the base year of 2004-05.

Going ahead with resolving NPA issue, Reserve Bank of India identified 12 stressed accounts, constituting 25 percent of gross bad loans for immediate resolution under the Insolvency and Bankruptcy Code. Once the case is referred to the NCLT under the Insolvency and Bankruptcy Code, an interim insolvency professional is appointed and will take control of the assets and form a creditors committee. Thereafter resolution professional to oversee the process and could change management of the debtor. The committee also has to come up with a resolution plan (approved by 75 percent majority of the creditors) or decide to liquidate the assets. If the resolution plan is not accepted by the NCLT or no plan is formed within 180 days (can be extended by 90 days) the company would go into liquidation.

Stocks to Watch

Reliance Industries is on the upside while Mphasis is on the downside.

Reliance Industries is currently trading at Rs.1357.50, up by Rs.43.15 or 3.28% from its previous closing of Rs 1314.35 on the NSE. The scrip opened at Rs.1315.90 and has touched a high and low of Rs 1360 and Rs 1315.90. respectively. So far 12101027(NSE) shares were traded on the counter. The current market cap of the Company is Rs.440862 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.1465 on 25-April-2017 and a 52 week low of Rs.932 on 09-November-2016

Mphasis is currently trading at Rs.603.65, down by Rs.13.70 or 2.22% from its previous closing of Rs.617.35 on the NSE. The scrip opened at Rs 615.10 and has touched a high and low of Rs.620.10 and Rs.600.25 respectively. So far 92406(NSE) shares were traded on the counter. The current market cap of the company is Rs.11604 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.654.35 on 05-June-2017 and a 52 week low of Rs.425 on 04-November-2016.