Election Date Disclosure Brings Flying Colours In The Market
Mar 15, 2019 | 16:35 PM IST
Mar 15, 2019 | 16:35 PM IST
Our Analysis
This week the benchmark Indices have witnessed a decent upmove after the Election Commission announced Lok Sabha elections dates on Monday. The market also witnessed a rally in mid-cap stocks after a long time. Banking and Financials services have been a key driver of the current rally, which lifted benchmark indices Sensex and Nifty to the fresh six-month high. Key reasons behind this spike are hope of stable government at Centre and consistent FII inflow.
The upmove over the last few session in the benchmark indices is strong, there are certain possibilities that the indices may move further the higher levels in the near term. Domestically, on the macro front, all focus will be on the key data like CPI and India's current account deficit. On the global front, the development in the US-China trade, progress on Brexit will be closely watched. Since the broader indices have outperformed the frontline indices we recommend to stick with the quality and fundamental sound companies instead of chasing down the momentum blindly.
This Weeks Market Highlights:
Benchmark Indices:
1) On Monday, Indian equity benchmarks closed strong after the Election Commission announced Lok Sabha elections date. The Sensex grew by 382 points at 37054.10, while Nifty was up 132.60 points at 11168.
2) Except for IT index, all other sectoral indices ended in green led by auto, energy, infra, metal, PSU bank, pharma, and FMCG.
3) On Tuesday, Indian equity benchmarks ended higher for the second consecutive day. The Sensex was up 481.56 points at 37535.66, while Nifty was up 133.20 points at 11301.20
4) Among the sectors, infra, energy, bank, FMCG, metal, and pharma witnessed buying interest, while IT and PSU bank index closed marginally lower.
5) On Wednesday, Indian equity benchmark ended higher for the third consecutive trading session, Nifty finished around 11,340 level. Sensex was up 216.51 points at 37752.17, while Nifty was up 40.50 points at 11341.70.
6) Among the sectors, except energy and PSU bank, all other indices are ended in red led by metal, pharma, and infra.
7) On Thursday, benchmark indices ended flat in a choppy session. The Sensex was up 2.72 points at 37754.89, while Nifty was up 1.60 points at 11343.30. Among the sectors, IT and auto stocks remained under pressure, while buying was seen in in the metal and pharma stocks.
7) On Friday, Indian equity benchmarks indices ended higher. The Sensex was up 269.43 points at 38024.32, while Nifty was up 83.60 points at 11,426.90.
Broader Index & Global Market:
- Globally, The rally in the US market slipped on Thursday after a three-day streak of gain, as uncertainty over when a trade deal between the United States and China would be reached left investors on edge. Asian along with European markets made the modest gain on Brexit reprieve.
- In the broader market, The Mid-cap and Small-cap has outperformed the benchmark indices, Also, banking and financial services have been a key driver of the current rally, which lifted benchmark indices Sensex and Nifty to a fresh six-month high. Key reasons behind this spike are hope of stable government at Centre and consistent FII inflow.
Movers & Shakers
The share price of CMI rose 9 percent after the company received vendor approval from prestigious companies.
Shares of Ujjivan Financial Services and Coal India fell 1.2 percent after the announcement of an interim dividend.
Key Market Drivers
- China is targeting a GDP growth range of 6 to 6.5 percent this year, down from 6.6 percent in 2018.
- Top trade officials from America and China are holding talks to negotiate a comprehensive trade deal.
- UK Parliament vote on No Brexit Deal with MPs vote by a majority of 211 to seek delay to EU departure.
- India has to announce its trade balance data which is expected to be between 14.5-15B Dollar.
- RBI will release its Forex Reserve Data this week which is expected to be around 403B Dollar.
Event Watch
- FOMC meeting
- Japan trade balance data
- UK CPI data
- BOE meeting
International:
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Domestic:
- Indian CPI YoY.
- India CAD data
Stocks To Watch
Aarti Industries, IIFL Holdings, RIL and HDFC Bank on Upside And Coal India On Downside
Share Market News 12-March-2019
Banking Stocks On Fire, Pushes Markets To New Highs
Indian equity benchmarks continued its upward momentum on the second day, with Nifty opened above 11,200 level. The Sensex was up 291.67 points at 37345.77, while Nifty was up 80.50 points at 11248.50. All the sectoral indices compiled by NSE advance, led by the NSE Nifty Metal Indexs 0.93 percent gains. The Indian rupee strengthened in open against the U.S. dollar. The home currency appreciated as much as 0.29 percent to 69.68 against the greenback. Overnight, US shares rebounded from a week-long losing streak, with the news that Nvidia Corp has agreed to buy Israeli chip designer Mellanox Technologies Ltd for $6.8 billion.
In the afternoon session, the Indian equity benchmark was trading higher. The Sensex was up by 398.03 points or 1.07% at 37452.13 and the Nifty was up by 118.20 points or 1.06% at 11286.25. All sector complied in NSE were trading in green led by Reality, Pharma & Energy. In a Broder Market, NSE mid-cap was up by 0.87% and smallcap indices were trading higher by 1.11%, respectively.
In the last hour of trade, Nifty was trading at 11,270 level. Indian equity benchmarks Indices ended on a strong note, Bulls took charge on the Dalal Street as benchmark indices rose for the two consecutive days. The Sensex was up 481.56 points at 37535.66, while Nifty was up 133.20 points at 11301.20. Among Sector compiled by NSE ended higher, led by the Nifty Realty Indexs 2.6 percent rally. While, the NSE Nifty PSU Bank was the top sectoral loser, down 0.19 percent. In the broader Market, the NSE MidCap Index was up by 0.46 percent and the NSE SmallCap Index grew by 1.30 percent. With a host of good businesses available at reasonable valuations and attractive price points, the broader market is pulling in investors, who were sitting on the sidelines, to accumulate/buy with a stronger degree of conviction. Central banks across the globe have been adopting a softer stance and with low inflation & declining interest rate scenario in India and an expected earnings recovery on the cards, there is an expectation that Indian equities receive reasonable foreign money allocations.
Top Gainers
BHARTIARTL by 5.00% to Rs 350.50. ,ICICIBANK by 3.42% to Rs 388.70, INDUSINDBK by 3.24% to Rs 1,563.70, LT by 3.15% to Rs 1,389.00, ADANIPORTS by 2.85% to Rs 361.30.
Top Losers
EICHERMOT By -2.62% to Rs 22,369.90, BAJFINANCE by -1.36% to Rs 2,753.00, INFRATEL by -1.16% to Rs 316.00,HINDPETRO by -0.91% to Rs 261.00.,JSWSTEEL by -0.87% to Rs.290.10.
Analysis Of Top Gainer And Loser
BHARTIARTL is the top gainer in today's market session, the Department of Telecom (DoT) will shortly ask Bharti Airtel and Tata Teleservices to collectively pay around | 15,000 crores as dues related to pending license fees, spectrum usage charges, Bharti Airtel will likely fight this demand in court as the definition of AGR (basis of calculation of levies) is still pending in the court.
EICHERMOT is the top loser in today's market, Analyst expects pain for CVs to continue in the coming months. There had been a buildup of unsold inventory, The RBI rate cut had also failed to lift buyers sentiment. Looming general elections is another concern.
Key Market News
- In a major overhaul of oil and gas exploration permits, the govt wouldn't charge any share of profit on the hydrocarbons created from less explored areas, because it appeared to attract the elusive personal and foreign investment to boost domestic output.
- The Goods and Services Tax (GST) Council is scheduled to meet on March 19 to finalize guidelines to support the changed tax rate structure for under construction houses.
- The National Stock Exchange (NSE) had launched the weekly options on the NIFTY IT Index.
- Foreign portfolio investors (FPIs) bought Rs 3,810.60 crore worth of domestic stocks on Monday, DIIs were net sellers to the tune of Rs 1,955.55 crore.
- U.K. Gross Domestic Product (GDP) MoM reported 0.5%.
Stocks To Watch
ESCORT is on the upside while M&MFIN is on the downside.
ESCORT is currently quoting at Rs.798.10 up by Rs 57.50 or 7.76% from its previous closing of Rs.740.60 on the NSE. The scrip opened at Rs.748.50 & has touched a high & low of Rs.806.70 and Rs. 745.00. respectively. So far 57,22,488(NSE) shares were traded on the counter. The current market cap of the company is Rs 9,782.25Cr. The NSE/BSE group stock has touched a 52 week high of Rs.1,017.70 on 02-MAY-2018 & a 52 week low of Rs.541.00 on 08-OCT-2018.
M&MFIN is currently quoting at Rs. 437.60 down by Rs.-8.40 or -1.88% from its previous closing of Rs.446.00 on the NSE. The scrip opened at Rs.447.25 & has touched a high & low of Rs.453.00 and Rs.436.65 respectively. So far 13,29,242(NSE) shares were traded on the counter. The current market cap of the company is Rs 27,085.90Cr. The BSE/NSE group stock has touched a 52 week high of Rs 534.00 on 30-APR-2018 & a 52 week low of Rs 342.65 on 05-OCT-2018.
Share Market News 11-March-2019
Pri Poll Rally Push MarketsTo Near Six-Month High
Indian equity benchmarks started on a positive note, Nifty inching towards 11,100 Mark. The Sensex was up 212.54 points at 36883.97, while Nifty up 68.90 points at 11104.30. All the sectoral indices were trading in green. The Indian rupee strengthened in open against the U.S. dollar. The home currency appreciated as much as 0.23 percent to 69.98 against the greenback. Asian markets struggled after US employment data raised concern about the strength of the global economy.
In the afternoon session, the Indian equity benchmark was trading higher. The Sensex was up by 299.10 points or 0.82% at 36970.53 and the Nifty was up by 105.20 points or 0.95% at 11140.60. All sector complied in NSE were trading in green led by PSU Bank, Metal & Energy. In a Broder Market, NSE mid-cap was up by 1.65% and smallcap indices were trading higher by 1.63%, respectively.
In the last hour of trade, Indian equity benchmarks Indices was trading at day high, Nifty was at 11,150 level. Indian equity benchmarks Indices ended on a strong note, bulls took charge of the Dalal Street with Sensex closed above 37,000, while Nifty finished above 11,150 mark. The Sensex was up 382.67 points at 37054.10, while Nifty was up 132.60 points at 11168. Among Sector compiled by NSE ended higher, led by the Nifty Metal Indexs 2.78 percent rally. While, the NSE Nifty IT Index was the only sectoral loser, down 0.23 percent. In the broader Market, the NSE MidCap Index was up by 2.14 percent and the NSE SmallCap Index grew by 2.38 percent. The recent surge is largely reflecting buoyancy on the local front despite signs of a slowdown in the global economy. The breakout in the benchmark index, after a four-month-long consolidation phase, has further boosted sentiment. Amid all, we feel stock selection is the key, as participation is limited mainly to the quality counters. Nifty has the potential of testing 11,300-11,400 zone in the near future.
Top Gainers
BHARTIARTL by 8.42% to Rs 334.70. ,HINDPETRO by 5.54% to Rs 263.70, BPCL by 5.31% to Rs 386.85, EICHERMOT by 4.79% to Rs 22,917.80, INFRATEL by 4.34% to Rs 318.75.
Top Losers
NTPC By -0.95% to Rs 150.75, TCS by -0.52% to Rs 2,012.10, ZEEL by -0.52% to Rs 452.75,HCLTECH by -0.51% to Rs 1,003.95.,TECHM by -0.51% to Rs.807.25.
Analysis Of Top Gainer And Loser
BHARTIARTL is the top gainer in today's market session, The Singapore governments investment arm GIC Pvt Ltd will invest Rs 5,000 crore ($700 million) to pick up around 4% stake in Bharti AirtelNSE 8.13 % by subscribing to the telcos Rs 25,000 crore rights issue.
NTPC is the top loser in today's market, The 705-megawatt (MW) Badarpur plant, which began operations in 1973, came in NTPCs fold in 2003, but as pollution concerns gripped the capital in the last decade, it was forced to shut down one unit after another. The state-owned power generator shut the last two units fourth and fifth of 210 MW each in October last year under a Supreme Court order over environmental worries from the burning of the coal. The first three units of the plant were of 95 MW each.
Key Market News
- The Government of Odisha has hiked excise duties on various liquors increasing prices by 10% to 125%. IMFL, gin, rum, brandy, vodka, and other liquors have been hiked to 400 per LPL from 360. India made beer with alcohol content of above 5% but below 8% has been amended to 55 from 50 per bottle.
- U.S. employment growth was seen hampered in February, with the economy creating only 20,000 jobs, signifying the signs of a sharp slowdown in economic activity in the first quarter.
- From April 11 to May 19, about 90 crore people will cast their votes to elect their representatives to the Lok Sabha elections in seven phases. The Election Commission (EC) announced on Sunday that the counting of votes would take place on May 23. the present term of Lok Sabha will end on June 3.
- Foreign portfolio investors (FPIs) bought Rs 1,095 crore worth of domestic stocks on Friday, DIIs were net sellers to the tune of Rs 470 crore.
Stocks To Watch
GRASIM is on the upside while INFY is on the downside.
GRASIM is currently quoting at Rs.827.10 up by Rs 20.05 or 2.48% from its previous closing of Rs.807.05 on the NSE. The scrip opened at Rs.809.00 & has touched a high & low of Rs.831.95 and Rs. 808.25. respectively. So far 12,43,730(NSE) shares were traded on the counter. The current market cap of the company is Rs 54,393.25Cr. The NSE/BSE group stock has touched a 52 week high of Rs.1,131.00 on 15-MAR-2019 & a 52 week low of Rs. 689.10 on 15-FEB-2018.
INFY is currently quoting at Rs. 710.95 down by Rs.-1.40 or -0.20% from its previous closing of Rs.712.35 on the NSE. The scrip opened at Rs.713.30 & has touched a high & low of Rs.718.50 and Rs.709.40 respectively. So far 99,30,706(NSE) shares were traded on the counter. The current market cap of the company is Rs 3,10,915.01Cr. The BSE/NSE group stock has touched a 52 week high of Rs 772.25 on 08-FEB-2019 & a 52 week low of Rs 551.00 on 16-APR-2018.
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