Bulls Say “Apna Time Aagaya”, It’s Time For Election Rally…

Our Analysis

This week the benchmark Indices have witnessed a decent upmove After the Pakistan PM has shown the 'gesture of peace' by safely returning IAF pilot wing Commander Abhinandan Vardhaman. The outshiners in this week was the Mid-cap & Small- Cap as they moved in the top gear and dominated the D-street. Further, adding optimism on the D-Street was the rally in the rupee, driven by a decline in the prices of the crude oil. Also, The consistent FII buying into Indian equities in the past two weeks has also had a salutary impact on the Indian rupee.

The upmove over the last few session in the benchmark indices was exhausted, there are certain possibilities that the indices may face some consolidation at the higher levels in the near term. Domestically, on the macro front, all focus will be on the key data like IIP, CPI, WPI 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 Tuesday, Indian equity benchmarks closed strong on the first day of the week as on Monday the market was closed. The Sensex grew by 378.73 points at 36442.54, while Nifty was up 124.00 points at 10987.50.

2) Among Sector compiled by NSE advanced, led by the Nifty Auto Index 3.13 percent gain. While, the NSE Nifty IT Index was the only sectoral loser, down 1.16 percent.

3) On Wednesday, Indian equity benchmarks ended higher for the third consecutive day with Nifty closed above 11,050. The Sensex grew by 193.56 points at 36636.10, while Nifty up by 65.50 points at 11053

4) Among Sector compiled by NSE advanced, led by the Nifty Pharma Index 1.1 percent rally. While, the Nifty Media Index was the top sectoral loser, down 1.3 percent.

5) On Thursday, Indian equity benchmark ended higher for the fourth consecutive trading session, Nifty finished around 11,050 level.

6) The Sensex was up 89.32 points at 36725.42, while Nifty was up 5.20 points at 11058.20. Among Sector compiled by NSE fell, led by the NSE Nifty Media Indexs 1.85 percent fall. While, the NSE Nifty PSU Bank Index was the top sectoral gainer, up 1.4 percent.

7) On Friday, Indian equity benchmarks opened lower.

Broader Index & Global Market:

- Globally, The rally in the US market has lost some steam, As the OECD has again cut its global growth rate for 2019 as well as the US trade deficit jumped to the 10 Yr high, Meanwhile china set the economic growth target for 2019 in the range of 6 - 6.5 %.

- - In the broader market, The Mid-cap and Small-cap has outperformed the benchmark indices, On Tuesday's we have witnessed a selected buying in the broader market, the NSE MidCap Index was up by 2.37 percent and the NSE SmallCap Index grew by 3.94 percent. Going forward we can expect the smart money can flow in specified Mid & Small Cap, So as an investor we should be aware and utilize this opportunity as maximum as possible.

Movers & Shakers

Shares of the Repco home finance surged more than 22 percent in a week after HDFC Mutual Fund (MF) bought 2 percentage stake in the housing finance company through the open market. 1.25 million equity shares, representing 2.01 percent stake was acquired by HDFC MF, in Repco Home Finance through various schemes. The total value of acquisition will be Rs 42 crore (approx).

Key Market Drivers

• US President Donald Trump, aforementioned that he can finish India's advantageous trade treaty beneatha program that permits $5.6 billion value of Indian exports to enter the United States duty-free.
• The china's Caixin/Markit services purchasing managers index (PMI) fell to 51.1, the lowest since October and down sharply from Januarys 53.6
• India's coffee exports rose 13.26% YoY to 48330 tonnes in January-February 2019. Out of the total, Robusta coffee exports increased by 28.42% to 34090 tonnes whereas Arabica coffee exports increased by 14.39% to 11156 tonnes
• The Nikkei India Services Business Activity Index rose to 52.5 last month from 52.2 in January.
• The unemployment rate in India rose to 7.2 percent in February 2019, up from 5.9 percent in February 2018.According to the report of CMIE.
• U.K. Services Purchasing Managers Index (PMI) reported 51.3.
• US trade deficit surges to a 10-year high in 2018 at $621 bn.
• Direct tax revenue totaled Rs 8.4 lakh cr so far this FY, CNBC-TV18 reported citing government officials. The collection is expected to fall Rs 60,000-70,000 cr short of FY revised direct tax revenue aim.
• Direct tax revenue totaled Rs 8.4 lakh cr so far this FY, CNBC-TV18 reported citing government officials. The collection is expected to fall Rs 60,000-70,000 cr short of FY revised direct tax revenue aim.
• US FDA Chief's exit could impact Indian pharma into uncertainty on what would be the stance of the next commissioner on generics drug pricing, the pace of approvals and regulatory inspections.

Event Watch

International:
• Chinas Trade balance
• Uk trade balance
• BOJ policy balance rate
• Japan GDP

Domestic:

• Indian CPI YoY
• India Industrial production
• India trade balance

Stocks To Watch

AXISBANK, ICICIBANK On Upside while INFY on Downside.