Metals Shine Despite Profit Booking Bumps; Nifty Below 9500

Share Market News 28 June 2017

Todays market opened negative on normal profit booking and negative global cues ahead of monthly F&O expiry, however, metal stocks shined as the metal stocks are trading at a strong support level. Sensex lost 123.93 points to 30834.32; Nifty lost 20.15 points to 9491.25.

Top Gainers

Tech Mahindra by 3.13% to 392, Yes Bank by 2.43% to 1449.95, Ambuja Cement by 2.26% to 246.20, Tata Steel by 2.16% to 521.95 And Vedanta by 2.07% to 242.05.

Top Losers

Reliance Industries by 2.60% to 1399.80, Asian Paints by 2.13% to 1110, HDFC by 1.64% to 1624, Zee Entertainment by 1.57% to 484.10 And ONGC by 1.38% to 157.75.

Analysis of Top Gainer and Loser

Tech Mahindra is the top gainer in today's market as its stock is downtrend from last one and half month and trading at strong support level due to the positive buying that was seen in the stock and one of its subsidiaries will sell shares in LCC Pakistan to Talkpool AG, Switzerland, for $5.2 million.

Reliance Industries is the top loser in today's market due to profit booking that was seen in the stock as it is trading at a resistance level and the company is going to raise Rs. 25000 crore in debt. The board of directors of the company to offer or invite subscriptions for secured/unsecured redeemable/non-convertible debentures, in one or more series by private placement. This loan will create pressure on the balance sheet for short term.

Key Market News-

As per the report, the growth of loan in the country is anticipated to rise up to 15% in 2017-18, from 9.1% in the previous fiscal as the demonetisation shock works itself out. To add to that, RBI open market operation (OMO) is also expected to push up loan supply and pull down bank lending rates, which in turn will spur loan demand and ultimate benefit to the banking stock.

A cautious news for pharma sector stocks has come as US Food and Drug Administration (USFDA) declared 2 measures which will expedite entry of generic drugs in the market. 1) USFDA has published a list of branded drugs of which patents and the periods of exclusivity have ended but do have any generic versions approved as yet and 2) for the first time, USFDA has implemented a new policy to expedite the review of generic drug applications where competition is limited which will increase competition and offer low-cost alternatives to patients on contrary it may face significant pricing pressure on companies due to increased competition.

Stocks To Watch

Bhansali Engineering Polymers is on the upside while Reliance Industries is on the downside.

Bhansali Engineering Polymers is currently trading at Rs.58.80, up by Rs.7.45 or 14.51% from its previous closing of Rs.51.35 on the NSE. The scrip opened at Rs.51.30 and has touched a high and low of Rs. 59.60 and Rs.50.40. respectively. So far 11217707(NSE) shares were traded on the counter. The current market cap of the company is Rs.36.16 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.59.60 on 28-June-2017 and a 52 week low of Rs.18.80 on 29-September-2016.

Reliance Industries is currently trading at Rs.1398.50, down by Rs.38.65 or 2.69% from its previous closing of Rs.1437.15 on the NSE. The scrip opened at Rs 1439.95 and has touched a high and low of Rs.1439.95 and Rs.1395.55 respectively. So far 3558538(NSE) shares were traded on the counter. The current market cap of the company is Rs.454713 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.1467.75 on 25-April-2017 and a 52 week low of Rs.930 on 09-September-2016.