8th Jun 2018 | 19:03 PM IST

RBI Hikes Interest Rates; Bulls Still Waiting For Nifty 10,800

Our Analysis

This week, the market rebounded from 10,600 levels to 10,800 but due to weak global cues, it wasn't able to stay above the level of 10,800, crucial for the bull rally. As RBI increased the interest rate by 25 bps & maintained a neutral stance to stay wide open for upcoming data of inflation with crude oil price & weaker rupee. More hike can be expected in the forthcoming meetings. Banks, NBFCs, Auto, IT & Metal stocks did well this week. In the coming weeks, the market is expected to remain volatile but sector like Fertilizers, Consumption, IT, Auto may do better. Global markets were stable but political uncertainty & rising crude oil prices can hamper sentiment in future.

This Week’s Market Highlights:

Benchmark Indices:

1. The benchmark indices started on a positive note but closed sharply lower as Sensex fell over 200 points & Nifty below 10,650.
2. Banks, NBFCs & realty index fell 1-3% while IT & Metal ended in green. Nifty midcap index underperformed frontliners, dropped over a per cent.
3. On Tuesday, the market extended losses for the 3rd straight day as Sensex closed below 35K while Nifty below 10,600, ahead of RBI Policy outcome.
4. On Wednesday, equity indices snapped 3-day losing streak as Sensex rallied nearly 300 points while Nifty near 10,700, as RBI hiked interest rate by 25 bps.
5. All sectoral indices closed in green led by PSU bank, Auto, Metal, Pharma, IT & FMCG while midcap index rose 1.42%.
6. On Thursday, the market extended gains for 2nd day as Sensex surged over 400 points & Nifty closed above 10,750. All sectoral indices closed in green.
7. On Friday, the market traded in red due to weak global cues & weak rupee.

Sectoral Index:

- This week broader market outperformed frontline indices as midcap & smallcap witnessed buying especially in banking, financials, auto, realty stocks. Though investors still feel that midcap & smallcap stocks are still overvalued at current level but one can’t deny the good stocks which are available at discounted price for buying opportunity with good fundamentals.

- Global markets witnessed good upside in Asia as well as in the foreign markets. Easing of crude oil prices & better than expected U.S. data and order of producing more crude oil for OPEC countries helped markets to trade in the upside.

Movers & Shakers

The country's largest steel maker SAIL reported a standalone net profit of Rs.815.57 crore for the quarter ended March 31 compared to the loss of Rs.771.3 crore, mainly helped the rise in revenues. The standalone total income increased to Rs.17,264.86 crore from Rs.14,543.53 crore in the year-ago period. The share price of the stock rose 14% this week.

Shares of fruit juice maker Manpasand Beverages plunged over 20% this week ever since its statutory auditor of eight years quit abruptly a week ago, just ahead of its quarterly earnings release which has since been deferred. Deloitte Haskins & Sells' letter to the company said it would not be able to complete the audit of financial statements for 2017-18 since Manpasand had not provided “significant information� sought by it.

Key Market Drivers

The Reserve Bank of India’s MPC has, for the first time in four years, hiked key repo rate by 25 basis points (bps) to 6.25%. Some highlights:-

- Repo rate hiked by 25 bps to 6.25%, Reverse repo rate hiked by 25 bps to 6%.
- The Monetary Policy Committee has maintained its neutral stance.
- GDP forecast retained at 7.4% for FY19.
- April-September GDP growth projected at 7.5-7.6%.
- October-March GDP growth projected at 7.3-7.4%.
- April-September CPI likely in 4.8-4.9% range including rent allowance impact.
- October-March CPI likely around 4.7% including home rent allowance impact.
- Considering norms to prevent abuse in the markets that are regulated by the RBI.

The World Bank has projected a growth rate of 7.3% for India this year and 7.5% for the next two years, making it the fastest growing country among major emerging economies. A top World Bank official said India's economy is robust, resilient and has potential to deliver sustained growth. The report, released yesterday, is the global lender's flagship publication on the state of the world economy.

Event Watch

India’s Industrial Production for April (YoY), Manufacturing Output for April (MoM) & CPI for May (YoY) data will be presented on 12th June 2018.

India’s WPI for May (YoY) data will be presented on 14th June 2018.

Global:- U.S. CPI for May (MoM) data will be on 12th June.

Stocks To Watch

Tata Motors Ltd. is on the upside while BPCL Ltd. is on the downside.

Share Market News – 07-June-2018

The Market Extend Gain For 2nd Day; Nifty Above 10,750

The Benchmark indices started on a good note as Sensex rose 200 points & Nifty near 10,750. The equity market extended gains as Sensex surged over 300 points while Nifty inched towards 10,800. All sectoral indices traded in green led by Realty, Bank, NBFCs, IT, Media & Metal which traded over 1% gain. Broader market outperformed fronliners as Nifty Midcap rose over 1%.

In the afternoon session, the market rallied further as Sensex surged over 400 points while Nifty crossed 10,800. Nifty Realty, Metal, Banking & financials & IT index rose over 1-2% while Nifty midcap also rose nearly 1.5%.

In the last hour of trade, the market continued to trade strongly as Sensex traded above 35,500 while Nifty hovered around 10,800. The market ended on a positive note but off day’s high. All sectoral indices closed in green with 0.5% to 1.5% gains while midcap index rose 1.53%. Sensex closed 284.20 points up at 35,463.08, Nifty up by 83.70 points at 10,768.35.

Top Gainers

Tata Steel by 3.82% to Rs.601.90, Tata Motors by 3.08% to Rs.304.75, IBULHSGFIN by 2.83% to Rs.1,213.50, ICICI Bank by 2.52% to Rs.291.05, Axis Bank by 2.14% to Rs.542.75.

Top Losers

Titan by -1.38% to Rs.887.00, Eicher Motors by -1.08% to Rs.29,625, IndusInd Bank by -0.93% to Rs.1,902, Coal India by -0.64% to Rs.288.80, Lupin by -0.45% to Rs.766.60.

Analysis Of Top Gainer And Loser

Tata Steel is the top gainer in today's market as company joined the race for Usha Martin’s Jamshedpur facility, which was put on the block to pare some of the parent's debt.

Titan is the top loser in today's market as some sort of selling pressure was seen in the stock.

Key Market News

The government should meet its fiscal deficit or excess of expenditures over revenues, target this financial year as its planned fiscal austerity measures are likely to fructify, according to the rating company Moody’s, which last year upgraded India’s sovereign rating to Baa2, one notch above than the lowest investment grade rank. “Although Moody’s sees some downside risk to budgeted revenue and expenditure targets, it expects that the government would cut back on planned capital expenditure, as has occurred in past years, if it is needed to offset any slippage from its fiscal targets,� says William Foster, a Moody’s Vice President and Senior Credit Officer.

The Indian economy will see a robust GDP growth of 7.3% in 2018-19 and 7.5% for the next two as “factors holding back growth in India fade�, the World Bank has projected, allowing the country to retain the tag as the world’s fastest-growing major emerging economy. Growth in India is projected to advance 7.3% in FY 2018-19 (1 April 2018-31 March 2019) and 7.5% in FY2019-20, reflecting robust private consumption and strengthening investment, the bank said in its June 2018 edition of the Global Economic Prospect report.

Stocks To Watch

Phillips Carbon Black Ltd. is on the upside while Manpasand Beverages Ltd. is on the downside.

Phillips Carbon is currently trading at Rs.242.40, up by Rs.24.40 or 11.19% from its previous closing of Rs.218.00 on the NSE. The scrip opened at Rs.230.05 & has touched a high & low of Rs.251.40 and Rs.228.20 respectively. So far 63,32,086 (NSE) shares were traded on the counter. The current market cap of the company is Rs.4,157.65 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.318.80 on 09-January-2018 & a 52 week low of Rs.88.72 on 06-June-2017.

Manpasand is currently trading at Rs.164.65, down by Rs.8.65 or 4.99% from its previous closing of Rs.173.30 on the NSE. The scrip opened at Rs.171.10 & has touched a high and low of Rs.178.80 & Rs.164.65 respectively. So far 26,72,233 (NSE) shares were traded on the counter. The current market cap of the company is Rs.1,893.78 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.512.00 on 15-September-2017 and a 52 week low of Rs.164.65 on 07-June-2018.

Share Market News –06-June-2018

Market Snapped 3-Day Losing Streak As RBI Maintains Neutral Stance

The Benchmark indices started the session on a flat note as Sensex was up 50 points & Nifty above 10,600 ahead of RBI policy outcome. The equity market extended gain as Sensex rose over 150 points while Nifty near 10,650. All sectoral indices traded in green led by Auto, PSU bank, Metal, Pharma, Realty & IT stocks while midcap index also witnessed strong spike was up nearly a percent.

In the afternoon session, the market extended gains as Sensex rose over 200 points while Nifty traded above 10,650. Among sectoral indices Auto, Metal, PSU bank & Media rose over 1% followed by Pharma, Realty, IT & FMCG index. Nifty midcap index also rose in line with frontliners was up 0.80%.

In the last hour of trade, the market rallied further as Sensex surged 300 points while Nifty near 10,700 after RBI hike rate. The market was driven by positive cues from MPC’s policy meeting outcome. All sectoral indices closed in green led by PSU bank, Auto, Metal, Pharma, IT & FMCG while midcap index rose 1.42%. Sensex closed 275.67 points up at 35,178.88, Nifty up by 91.50 points at 10,684.65.

Top Gainers

Bharti Airtel by 4.50% to Rs.380.70, Titan by 4.40% to Rs.902.00, Tata Motors by 3.68% to Rs.295.45, Sun Pharma by 3.45% to Rs.489.85, Bajaj Finance by 3.22% to Rs.2,168.25.

Top Losers

HindPetro by -1.19% to Rs.311.00, TechM by -0.89% to Rs.695.00, Cipla by -0.69% to Rs.538.35, GAIL by -0.49% to Rs.333.05, Asian Paint by -0.44% to Rs.1,268.

Analysis Of Top Gainer And Loser

Bharti Airtel is the top gainer in today's market as the company is in talks with US telecom major Verizon for a broad partnership around the Internet of Things.

HindPetro is the top loser in today's market as some sort of selling pressure was seen in the stock.

Key Market News

The Reserve Bank of India’s MPC has, for the first time in four years, hiked key repo rate by 25 basis points (bps) to 6.25%. Some highlights:-

- Repo rate hiked by 25 bps to 6.25%, Reverse repo rate hiked by 25 bps to 6%.

- The Monetary Policy Committee has maintained its neutral stance.
- GDP forecast retained at 7.4% for FY19.
- April-September GDP growth projected at 7.5-7.6%.
- October-March GDP growth projected at 7.3-7.4%.
- April-September CPI likely in 4.8-4.9% range including rent allowance impact.
- October-March CPI likely around 4.7% including home rent allowance impact.
- Considering norms to prevent abuse in the markets that are regulated by the RBI.

The World Bank has projected a growth rate of 7.3% for India this year and 7.5% for the next two years, making it the fastest growing country among major emerging economies. A top World Bank official said India's economy is robust, resilient and has potential to deliver sustained growth. The report, released yesterday, is the global lender's flagship publication on the state of the world economy.

Stocks To Watch

Allahabad Bank is on the upside while Balrampur Chini Mills Ltd. is on the downside.

Allahabad Bank is currently trading at Rs.43.20, up by Rs.3.45 or 8.68% from its previous closing of Rs.39.75 on the NSE. The scrip opened at Rs.39.75 & has touched a high & low of Rs.43.70 and Rs.39.45 respectively. So far 1,04,80,287 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,646.27 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.89.00 on 26-October-2017 & a 52 week low of Rs.37.30 on 16-May-2018.

Balrampur Chini is currently trading at Rs.67.15, down by Rs.5.10 or 7.06% from its previous closing of Rs.72.25 on the NSE. The scrip opened at Rs.73.10 & has touched a high and low of Rs.75.50 & Rs.66.25 respectively. So far 2,89,67,482 (NSE) shares were traded on the counter. The current market cap of the company is Rs.1,535.04 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.182.50 on 13-September-2017 and a 52 week low of Rs.58.70 on 16-May-2018.

Share Market News –05-June-2018

Sensex, Nifty Fell For Third Day Ahead Of RBI Policy Outcome

The Benchmark indices began the day on a flat note as Sensex fell 50 points & Nifty held 10,600. The equity market continued to struggle as Sensex was down 150 points while Nifty below 10,600. All sectoral indices traded in red led by metal, realty, pharma & IT stocks while midcap index underperformed frontliners as midcap was down over 1%.

In the afternoon session, the market continued to trade lower as Sensex was down over 100 points while Nifty struggled below 10,600. All the sectoral indices traded in red as IT, pharma, realty, metal & some banks witnessed selling pressure. Meanwhile, midcap extended losses were down over 1.5%.

In last hour of trade, the market continued to trade under pressure as Sensex was down 120 points while Nifty traded below 10,600. The D-Street ended highly volatile day on a negative note ahead of RBI Policy due tomorrow. Baring financial services all sectoral indices closed in red led by IT, realty, metal & media while midcap ended lower by over a percent. Sensex closed 108.68 points down at 35,903.21, Nifty down by 35.35 points at 10,593.15.

Top Gainers

Cipla by 4.11% to Rs.542.10, Bajaj Finance by 2.49% to Rs.2,114.25, HindPetro by 1.76% to Rs.317.70, Tata Steel by 1.32% to Rs.573.65, Bajaj Finserv by 1.21% to Rs.5,817.95.

Top Losers

ZEEL by -3.08% to Rs.543.00, Titan by -2.41% to Rs.864.00, Bharti Airtel by -2.11% to Rs.364.45, Coal India by -2.00% to Rs.286.75, L&T by -1.83% to Rs.1,333.05.

Analysis Of Top Gainer And Loser

Cipla is the top gainer in today's market as Cipla has initiated ‘INNOVENTIA’ that is envisioned to be the world’s biggest innovation challenge to crowdsource and incubate disruptive ideas in healthcare.

Zee Entertainment Enterprises is the top loser in today's market as selling pressure was seen in the stock.

Key Market News

Activity in India’s service industry shrank in May for the first time in three months as new orders stagnated, but business optimism was the highest since 2015 on expectations that demand will turn around, a business survey showed. The Nikkei/IHS Markit Services Purchasing Managers’ Index (PMI) fell to 49.6 in May from April’s 51.4, sinking below the 50-mark that separates growth from contraction. While data last week showed Asia’s third-largest economy grew at its quickest pace in nearly two years, the latest PMI survey suggested it may have trouble maintaining that momentum.

Concerned over mounting cane arrears of more than Rs.22,000 crore, the government is likely to announce a bailout package of over Rs.7,000 crore to ensure cash-starved mills clear dues to farmers at the earliest, sources said. A decision in this regard is expected to be taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) scheduled today, the sources added.

Stocks To Watch

LT Foods Ltd. is on the upside while KEI Industries Ltd. is on the downside.

LT Foods is currently trading at Rs.67.60, up by Rs.4.85 or 7.73% from its previous closing of Rs.62.75 on the NSE. The scrip opened at Rs.62.80 & has touched a high & low of Rs.69.40 and Rs.61.40 respectively. So far 20,06,040 (NSE) shares were traded on the counter. The current market cap of the company is Rs.2,174.94 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.110.00 on 08-January-2018 & a 52 week low of Rs.55.45 on 11-August-2017.

KEI Industries is currently trading at Rs.388.00, down by Rs.64.45 or 14.62% from its previous closing of Rs.454.45 on the NSE. The scrip opened at Rs.445.45 & has touched a high and low of Rs.451.90 & Rs.371.15 respectively. So far 22,41,228 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,043.56 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.496.00 on 30-May-2018 and a 52 week low of Rs.206.00 on 01-August-2017.

Share Market News 04-June-2018

Banks Dragged The Market For 2nd Straight Day; Nifty Below 10,650

The Benchmark indices started the week on a strong note as Sensex rose over 200 points & Nifty above 10,750, amid positive global cues. The equity market traded rangebound as Sensex fell 15 points while Nifty struggled below 10,700. HDFC Bank, TCS & FMCG stocks were under pressure while Reliance, Infosys & Tata Motors continued to support the market, rose over 1%. Nifty Midcap index continued to underperform frontliners.

In the afternoon session, the market traded lower as Sensex fell over 50 points while Nifty below 10,700, amid consolidation. Banking & financial and realty continued to drag market while midcap index extended losses to 150 points.

In the last hour of trade, the market extended losses as Sensex fell over 150 points while Nifty fell below 10,650. The market ended sharply lower. Banking, financial & realty index fell 1-3% while IT & Metal ended in green. Nifty midcap index underperformed frontliners, shed over a percent. Sensex closed 215.37 points down at 35,011.89, Nifty down by 67.70 points at 10,628.50.

Top Gainers

Dr. Reddy by 2.40% to Rs.1,988, Infosys by 1.65% to Rs.1,241, Lupin by 1.37% to Rs.774.95, Hindalco by 1.30% to Rs.241.60, M&M by 1.26% to Rs.913.00.

Top Losers

IBULHSGFIN by -4.49% to Rs.1,177.95, HDFC Bank by -3.11% to Rs.2,045, Bharti Airtel by -2.74% to Rs.373.20, Adani Ports by -2.35% to Rs.378.50, Infratel by -2.20% to Rs.294.05.

Analysis Of Top Gainer And Loser

Dr. Reddy is the top gainer in today's market after Srikakulam plant cleared by the US health regulator. The pharma major informed exchanges that the audit of API Srikakulam Plant (SEZ), Andhra Pradesh by the US Food and Drug Administration has been completed with no observations.

IBULHSGFIN is the top loser in today's market as strong selling pressure was seen in the stock. As MPC meet started from today only for the future interest rate decision & commentary will be a significant event for banks & NBFCs.

Key Market News

Reserve Bank of India’s (RBI) monetary policy committee (MPC) is likely to keep policy rates unchanged on Wednesday but may raise them at its next meeting in August, say economists. Of the 15 economists surveyed by Mint, 11 expect the central bank to keep the repo rate—the rate at which the central bank infuses liquidity in the banking system—unchanged at 6%. Only four economists expect RBI to raise rates by 25 basis points (bps).

U.S. hiring rose more than forecast in May, wages picked up and unemployment rate matched the lowest in almost five decades, indicating the strong labour market will keep powering economic growth. Payrolls increased 2,23,000 following a revised 1,59,000 gain, Labor Department figures showed Friday. The median estimate of analysts surveyed by Bloomberg called for 1,90,000 jobs. Average hourly earnings increased 2.7% from a year earlier, more than projected, while the jobless rate fell to 3.8% from 3.9% to match April 2000 as the lowest since 1969.

Stocks To Watch

Anant Raj Ltd. is on the upside while PC Jeweller Ltd. is on the downside

Anant Raj is currently trading at Rs.44.90, up by Rs.3.45 or 8.49% from its previous closing of Rs.40.65 on the NSE. The scrip opened at Rs.42.00 & has touched a high & low of Rs.45.50 and Rs.42.00 respectively. So far 35,33,201 (NSE) shares were traded on the counter. The current market cap of the company is Rs.1,294 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.84.40 on 10-January-2018 & a 52 week low of Rs.38.70 on 01-June-2018.

PC Jeweller is currently trading at Rs.130.60, down by Rs.25.60 or 16.39% from its previous closing of Rs.156.20 on the NSE. The scrip opened at Rs.158.75 & has touched a high and low of Rs.159.40 & Rs.126.85 respectively. So far 5,00,42,802 (NSE) shares were traded on the counter. The current market cap of the company is Rs.5,124.65 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.600.65 on 16-January-2018 and a 52 week low of Rs.94.65 on 31-May-2018.

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