US Economic Indicators To Lead Market Trends
Oct 19, 2018 | 14:52 PM IST
Oct 19, 2018 | 14:52 PM IST
Our Analysis
This week Indian market started on a good note but fear of liquidity concern & weak global cues led market to fall over 1%. Market concerned over liquidity issue which led to a huge correction in financials. Some big players like Reliance, Infosys, Hero Motocorp come with the inline set of numbers but investors didnt like. Indian Rupee appreciated from its all-time low while Crude oil prices fall below $80/ barrel for the first time in October. As tailwinds still in corner market expected to remain weak though some technical bounceback will be possible. Pain in frontline stocks & broader market is still in the corner. Earnings will be a strong event to watch. Rupee movement, crude oil price, trade war progress, Q2 earnings will be an event to watch next week.
This Weeks Market Highlights:
Benchmark Indices:
1. The market started the week on a positive note & ended higher for the second day as Sensex rose 132 points while Nifty above 10,500.
2. Buying counters were buzzing in IT, pharma, media & FMCG while auto, metals & Pvt. bank were some of the losers. The Nifty Midcap index ended 1% higher.
3. On Tuesday bulls took total control in D-street as Sensex surged nearly 300 points while Nifty back above 10,550 levels.
4. All sectoral indices closed in green led by banks & financials, auto, IT, FMCG, pharma & realty stocks. Nifty Midcap index outperformed, ended 1.55% higher.
5. On Wednesday market halted 3-day winning streak as Sensex fall 383 points while Nifty ended below 10,500 on sharp selling pressure.
6. Baring IT & FMCG all sectoral indices closed lower led by banks, financials, auto, metal, realty & pharma. Nifty Midcap index underperformed, ended 2.26% lower.
7. On Friday started on a negative note dragged by Reliance & IT stocks.
Broader Index & Global Market:
- This week broader market outperformed market despite fall in last two trading session as midcap & smallcap index ended the week flat to lower. On sectoral indices Auto, IT, Financials, Media & Energy index fall 2-6% while FMCG was the lone gainer this week & metal, pharma ended flat to marginally lower.
- This week a risk-off tone gripped global financial market, with US stocks slide while Treasuries climbed. European market also felt the pressure of US derailing & also the Brexit issue. Asian market falls further this week as investors worried about the impact of higher interest rates & trade war outlook. ECB Interest rate decision, US GDP, trade war, crude oil prices will be an event to watch next week.
Movers & Shakers
Shares of NIIT Technologies surged 15% this week after the company reported 66.3% jump in net profit for the quarter ended September 30. NIIT Technologies Wednesday reported 66.3% jump in net profit to Rs.111.8 crore while revenue grew by 23.1% to Rs.907.4 crore for Q2 driven by strong demand across sectors like BFSI and travel and transportation.
Shares of Indiabulls Housing Fin. tanked over 20% this week after some brokerages firm said while its core business trends remain stable, the growth in AUM is likely to slow down going forward. Also, its exposure to SuperTech Ltd., a property developer whose credit facilities have been downgraded to default didnt help the sentiment. The company posted a strong set of numbers in Q2 as profit jumped 21% to Rs.1,044 cr.
Key Market Drivers
Despite high oil prices, merchandise trade deficit was at a five-month low of $13.98 billion in September as compared with $17.39 billion in August. The deficit was $9 billion in September 2017, data released by commerce ministry showed. During April-September, the deficit was $94.32 billion. Merchandise exports, however, witnessed a marginal negative growth of 2.15% at $27.95 billion in September from $28.56 billion a year & $27.84 billion in August. Imports grew 10.45% in September at $41.9 billion as compared with $37.9 billion a year ago.
Wholesale prices in India grew 5.13% in September, driven by a rise in prices of fuel, data released by the Commerce and Industry Ministry showed. Wholesale inflation, which is measured by the WPI, rose 4.53% in August this year & 2.60% in September 2017. Prices of fuel and power, which together have a weight of 13.15% on the WPI, grew at 16.65% in September, as against a rise of 17.73% in August.
Event Watch
Q2 FY19 Result :- ITC, ICICI Bank, Yes Bank, Bharti Airtel, JSW Steel, Maruti Suzuki, Adani Ports, Bajaj Finance, Bajaj Finserv, HCL Tech, Asian Paints, TVS Motors, RBL, Dr. Reddy, Hindustan Zinc, Ambuja Cement, BEL, Nestle.
Global:- ECB Interest Rate Decision will be on 25th October 2018. US GDP Data for Q3 (QoQ) will be on 26th October 2018, also Manufacturing PMI, Services PMI (October) will be on 24th October 2018.
Stocks To Watch
Jet Airways (India) Ltd. is on the upside while Dish TV Ltd. is on the downside.
Share Market News 17-October-2018
Market Gives Up 3-day Winning Streak, Sensex Closes 382 Points Lower
The Benchmark indices started on a strong note, Sensex rose 400 points & Nifty above 10,700-mark. The equity market was off days high as Sensex was up 150 points while Nifty hold 10,600. Selling in NBFCs, auto, realty, pharma & metal stocks erased most of the gains while FMCG & IT stocks. Nifty Midcap index underperformed frontline indices, traded 0.67% lower.
In afternoon session D-street erased all its gains as Sensex fall 90 points & Nifty below 10,550. Sharp selling in banking & financials, auto, realty & metal dragged market while IT & FMCG stocks continued to trade higher. The Nifty midcap index continued to under perform the market, traded over 1% lower.
In the last hour of trade market remained lower as Sensex was down 215 points while Nifty fall below 10,500. Sharp selling pressure dragged market lower. Baring IT & FMCG all sectoral indices closed lower led by banks, financials, auto, metal, realty & pharma. Nifty Midcap index underperformed the market, traded 2.26% lower. Sensex closed 382.90 points down at 34,779.58, Nifty down by 131.70 points at 10,453.05.
Top Gainers
HCL Tech by 1.85% to Rs.1,022, Wipro by 1.68% to Rs.324.40, Coal India by 1.57% to Rs.280.75, Infosys by 1.47%to Rs.705.50, ITC by 1.20% to Rs.286.05.
Top Losers
IBULHSGFIN by -14.27% to Rs.777.90, Bajaj Finance by -6.97% to Rs.2,148, Yes Bank by -6.39% to Rs.233.00, Adani Ports by -5.80% to Rs.314.00, BPCL by -5.51% to Rs.285.45.
Analysis Of Top Gainer And Loser
HCL Tech is the top gainer in today's market as some sort of a buying was seen in the stock. Also, most of the IT stocks traded higher on the back of good quarterly earnings by Infosys & TCS.
Indiabulls Housing Finance is the top loser in today's market amid fears of its exposure to SuperTech. Brickwork last week revised ratings on Rs.1,866.4 crore of SuperTechs bank facilities to default citing its failure to service debt obligations.
Key Market News
A senior Treasury Department official warned that a hard Brexit could hurt global financial stability and said the U.S. is working with officials in the U.K. and EU to limit risks of Britains withdrawal from the bloc. As the timeline for action gets shorter, the need to address potential financial and economic disruption increases, David Malpass, Treasury undersecretary for international affairs, told a meeting Tuesday of the Financial Stability Oversight Council. We want to ensure that potential spillovers, particularly in the event of a hard Brexit, are mitigated so that financial stability is maintained.
President Donald Trump called the Federal Reserve his biggest threat, again criticizing the central bank for endangering economic growth through interest-rate hikes. The Fed is raising rates too fast, Trump said Tuesday in an interview with Trish Regan Primetime on Fox Business Network. Fed Chairman Jerome Powell was nominated by Trump and approved by a Republican-controlled Senate earlier this year. In the interview, Trump said the central bank is independent so I dont speak to them, but Im not happy with what hes doing because its going too fast.
Stocks To Watch
United Breweries Ltd. is on the upside while Indiabulls Housing Finance Ltd. is on the downside.
UBL is currently trading at Rs.1,210, up by Rs.50.95 or 4.40% from its previous closing of Rs.1,159.05 on the NSE. The scrip opened at Rs.1,169 & has touched a high & low of Rs.1,232.75 and Rs.1,163 respectively. So far 13,30,931 (NSE) shares were traded on the counter. The current market cap of the company is Rs.31,993.02 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.1,466.95 on 28-September-2018 & a 52 week low of Rs.822.80 on 18-October-2018.
India bulls Housing is currently trading at Rs.777.90, down by Rs.129.45 or 14.27% from its previous closing of Rs.907.35 on the NSE. The scrip opened at Rs.911.90 & has touched a high & low of Rs.920.00 and Rs.777.20 respectively. So far 1,91,01,381 (NSE) shares were traded on the counter. The current market cap of the company is Rs.33,659.89 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.1,440 on 29-January-2018 & a 52 week low of Rs.765.65 on 21-September-2018.
Share Market News 16-October-2018
Market Rallies For 3rd Day Led By Reliance, ICICI Bank, Nifty Near 10,600
The Benchmark indices started on a positive note, Sensex rose 150 points & Nifty above 10,550. The equity market extended gains as Sensex surged 300 points while Nifty eyed 10,600. Nifty Bank, Auto, Financial Service, and Metal indices gained over a percent each while pharma traded lower. Nifty Midcap index outperformed frontline indices, traded 1% higher.
In the afternoon session market continued to remain strong as Sensex was up 280 points & Nifty above 10,550. All Sectoral indices traded in green led by banking & financials, auto, metal, IT & realty index pushed the market higher. The Nifty midcap index continued to outperform the market, traded 1% higher.
In the last hour of trade market continued to trade with good gains as Sensex was up 220 points while Nifty above 10,550. The market closed sharply higher for the third consecutive session. All sectoral indices closed in green led by banks & financials, auto, IT, FMCG, pharma & realty stocks. Nifty Midcap index outperformed frontline indices which ended 1.55% higher. Sensex closed 297.38 points up at 35,162.48, Nifty up by 72.25 points at 10,584.75.
Top Gainers
M&M by 4.01% to Rs.779.00, Adani Ports by 4.00% to Rs.334.10, ONGC by 3.22% to Rs.165.30, Tech Mahindra by 2.94%to Rs.715.00, SBIN by 2.72% to Rs.270.35.
Top Losers
IBULHSGFIN by -5.15% to Rs.900.00, Eicher Motors by -1.34% to Rs.23,120, JSW Steel by -1.21% to Rs.372.25, Cipla by -1.21% to Rs.640.00, Infosys by -0.97% to Rs.692.00.
Analysis Of Top Gainer And Loser
Mahindra & Mahindra is the top gainer in today's market as good buying was seen in the stock after the recent correction.
Indiabulls Housing Finance is the top loser in today's market after the companys standalone net profit for Q2FY19 missed street expectation. Companys net profit was 3% below consensus estimates, which has improved by 21.3% YoY to Rs.1,044 cr. against Rs.861 Cr. YoY. Its GNPA for Q2FY19 stood at 0.77%. The companys NII for Q2FY19 has improved by 17.4 YoY to Rs.1,631 cr. against Rs.1,389 Cr.YoY
Key Market News
Despite high oil prices, merchandise trade deficit was at a five-month low of $13.98 billion in September as compared with $17.39 billion in August. The deficit was $9 billion in September 2017, data released by commerce ministry showed. During April-September, the deficit was $94.32 billion. Merchandise exports, however, witnessed a marginal negative growth of 2.15% at $27.95 billion in September from $28.56 billion a year & $27.84 billion in August. Imports grew 10.45% in September at $41.9 billion as compared with $37.9 billion a year ago.
Oil prices steadied, supported by geopolitical tension over the disappearance of a Saudi journalist that has stoked worries about supplies from Riyadh but weighed by concern over long-term demand outlook. Brent crude futures for December delivery rose 35 cents to settle at $80.78 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 44 cents to settle at $71.78 a barrel. Last week, both contracts fell by more than 4% as U.S. stock markets tumbled.
Stocks To Watch
Future Retail Ltd. is on the upside while Dewan Housing Finance Corporation Ltd. is on the downside.
Future Retail is currently trading at Rs.496.90, up by Rs.63.35 or 14.61% from its previous closing of Rs.433.55 on the NSE. The scrip opened at Rs.436.00 & has touched a high & low of Rs.517.70 and Rs.431.00 respectively. So far 28,60,836 (NSE) shares were traded on the counter. The current market cap of the company is Rs.24,816.83 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.656.00 on 24-November-2017 & a 52 week low of Rs.423.00 on 03-October-2018.
DHFL is currently trading at Rs.267.30, down by Rs.14.30 or 5.08% from its previous closing of Rs.281.60 on the NSE. The scrip opened at Rs.285.00 & has touched a high & low of Rs.289.80 and Rs.266.45 respectively. So far 2,30,48,046 (NSE) shares were traded on the counter. The current market cap of the company is Rs.8,458.44 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.691.50 on 03-September-2018 & a 52 week low of Rs.193.40 on 09-October-2018.
Share Market News 15-October-2018
Market Extend Rebound As Tech, Drug Makers Lead, Nifty Above 10,500
The Benchmark indices erased gains after rising as Sensex fall 10 points & Nifty 10 points on weak Asian cues. The equity market continued to trade lower as Sensex fall 150 points while Nifty below 10,450. Nifty banking & financials, auto, FMCG & metal were the biggest losers while pharma index surged nearly 2%. Nifty midcap index outperformed the market, traded 80 points higher.
In the afternoon session market gained strength as Sensex rose 160 points & Nifty back above 10,500. Strong buying in IT, pharma, financials, FMCG & media pushed the market higher while auto & metal remained under pressure. The Nifty midcap index continued to outperform frontline indices, traded nearly 1% higher.
In the last hour of trade market continued to trade higher as Sensex was up 100 points while Nifty above 10,500. The market gained for the second day on value buying. Buying counters were buzzing in IT as well as pharma, media & FMCG while auto, metals & Pvt. bank were some of the losers. The Nifty Midcap index outperformed benchmark indices ended 1% higher. Sensex closed 131.52 points up at 34,865.10, Nifty up by 40.00 points at 10,512.50.
Top Gainers
Dr. Reddy by 4.76% to Rs.2,567.25, Cipla by 3.97% to Rs.647.65, Infosys by 3.64% to Rs.703.50, Hindalco by 2.56%to Rs.232.50, ITC by 2.34% to Rs.281.65.
Top Losers
HindPetro by -2.84% to Rs.212.20, Bajaj Finserv by -2.64% to Rs.5,660.00, HINDUNILVR by -2.49% to Rs.1,530.55, M&M by -2.42% to Rs.749.90, GAIL by -2.31% to Rs.351.00.
Analysis Of Top Gainer And Loser
Dr. Reddy Labs is the top gainer in today's market after the company received approval for Aspirin and Extended-Release Dipyridamole Capsules, a therapeutic equivalent generic version of Aggrenox Capsules in the United States market from the USFDA. The Company is working towards launching the product.
Hindustan Petroleum Corporation Ltd. is the top loser in today's market as Oil prices rose on Monday as tension over the disappearance of a prominent Saudi journalist stoked supply worries.
Key Market News
Wholesale prices in India grew 5.13% in September, driven by a rise in prices of fuel, data released by the Commerce and Industry Ministry showed. Wholesale inflation, which is measured by the WPI, rose 4.53% in August this year & 2.60% in September 2017. Prices of fuel and power, which together have a weight of 13.15% on the WPI, grew at 16.65% in September, as against a rise of 17.73% in August. Prices of primary articles, which account for more than a fifth of the entire WPI, rose 2.97%, as against a fall of 0.15% in August.
Crude oil futures rose on Monday as geopolitical tensions over the disappearance of a prominent Saudi journalist stoked worries about supply, although concerns about the long-term outlook for demand dragged on prices. Crude markets were also supported in the wake of data that showed South Korea did not import any oil from Iran in September for the first time in 6 years before US sanctions against the Middle Eastern country take effect in November. Brent crude had risen $1.01, or 1.26%, to 81.44/barrel by 0424 GMT, on track for its biggest daily gain since Oct. 9.
Stocks To Watch
Trident Ltd. is on the upside while Rajesh Exports Ltd. is on the downside.
Trident is currently trading at Rs.69.35, up by Rs.11.55 or 19.98% from its previous closing of Rs.57.80 on the NSE. The scrip opened at Rs.58.00 & has touched a high & low of Rs.69.35 and Rs.58.00 respectively. So far 1,08,16,082 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,521.31 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.105.45 on 01-November-2017 & a 52 week low of Rs.51.15 on 22-May-2018.
Rajesh Exports is currently trading at Rs.567.00, down by Rs.40.90 or 6.73% from its previous closing of Rs.607.90 on the NSE. The scrip opened at Rs.606.00 & has touched a high & low of Rs.608.95 and Rs.566.20 respectively. So far 4,34,547 (NSE) shares were traded on the counter. The current market cap of the company is Rs.16,868.20 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.874.00 on 16-January-2018 & a 52 week low of Rs.559.65 on 17-July-2018.
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