New Year, New High; Sensex & Nifty At The Peak

Jan 05, 2018 | 05:28 PM IST

Market This Week

The New Year kicked off on a lukewarm note as benchmark indices were flat on the first day of the year. However, on the same day, the midcap stocks were trading higher and outperformed the benchmarks in the opening tick. On Tuesday and Wednesday, the market continued to trade flat. However, on Wednesday Nifty midcap outperformed Indices. On Friday Sensex crossed 34K mark while Nifty crossed 10,550 to hit a new all-time high due to broad-based buying.

Movers & Shakers

Fortis Healthcare promoters have been in talks with private equity firms for the past year to sell their 34% stake in Fortis Healthcare. The funds would be used to partly finance its recent acquisition of Singapore-listed RHT Health Trust. However, Daiichi Sankyo's had filed a petition, which restricted the Fortis promoters to sell any shares in their flagship hospital chain. The promoters currently have 34.4% stake in Fortis Healthcare. In the wake of this development, Fortis stock surged 20% in last week.

BPCL share price is down due to increase in Brent crude oil prices on ongoing supply cuts. Today, oil prices had their highest January opening since 2014, supported by ongoing supply cuts led by OPEC and Russia as well as strong demand. The stock slipped 6-7% last week.

Key Market Drivers

The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose to 54.7 in December, from 52.6 in November as the increase was recorded across all three monitored categories - consumer, intermediate and investment.

Despite the demonetisation hangover and GST rollout, car and SUV sales in calendar 2017 grew at the fastest pace since 2013 and surpassed the 3 million mark for the first time. Sales of passenger vehicle grew 9.2 percent to nearly 3.2 million from 2.9 million units in 2016. These are initial estimates and the final figures could be even higher.

US factory activity increased more than expected in December, boosted by a surge in new orders, it is a further sign of strong economic momentum at the end of 2017. The economy’s robust fundamentals were also underscored by other data on Wednesday showing construction spending rising to a record high in November amid broad gains in both private and public outlays.

The government on Thursday asked parliament approval for Rs.80,000 crore ($12.62 billion) extra spending to recapitalise state banks as part of a move to help lenders deal with bad debts and revive credit growth.

Event Watch

India IIP and CPI data will be presented next week. Both numbers will be closely watched as these are the indicators of the inflation. Growth is a little poised in last few quarters with increasing inflation. This is not a good indicator of the economy. Companies will start posting their quarter earnings soon. After the settlement of GST, expectations are marginally higher for the companies in order to deliver better earnings. Budget 2018 is the most anticipated event of the first quarter of 2018.

Stocks to Watch

Prism Cement is on the upside while Infratel is on the downside.



Niveza Editorial Desk : We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells everyday to pave a smooth road for our clients in the shaky world of stock market. While...



Nifty Above 10,700 For First Time; Sensex Misses The 35K Milestone

Share Market News – 15-January-2018 The market on Monday began on a positive note as Sensex was up by 180 points to trade above 34,700 levels while Nifty was up by 50 points to trade above 10,700 for the first time. The
Read More>>

Bulls Take Charge As Sensex & Nifty Scale New High

Market This Week The New Year cheer extended for the second consecutive week as the benchmark indices once again continued to hit new record highs throughout the week backed
Read More>>

Free Research Report- Himatsingka Seide Ltd

The Himatsingka Group focuses on the manufacturing,
Read More>>

Why Settle For Less? The Best Tax Saving Investment

The tax season starts with the new year and all the salaried and business people scurry around to find the hacks to save maximum tax. The problem with people's perception is that they tend to think of Income Tax Act as an incomprehensible text
Read More>>

Sensex At Record High, Nifty Above 10650; IT, Telecom Stocks Rally

Share Market News – 11-January-2018 The market started on a flat note on Thursday as Sensex inched up by 15 points to trade above 34,450 levels while Nifty edged down by 3 points. The broader market also started on a
Read More>>