IT & Banking Stocks Continue To Shine In A Volatile Market
May 25, 2018 | 16:51 PM IST
May 25, 2018 | 16:51 PM IST
Our Analysis
This week also market continued to consolidate amid volatility due to higher crude oil price & continued depreciation of rupee while domestic political graph also hurt sentiment. Companies also presented mix set of earnings for fourth quarter as Tata Motors, BPCL missed estimate while GAIL & SBI management guidance gathered strength. Global sentiment also remained negative as FOMC minutes indicated rate hike soon while Trade tariff war continued to worry investors. Market expected to remain volatile with both side sentiment but quality stock buying will continue.
This Weeks Market Highlights:
Benchmark Indices:
1. The benchmark indices started the week on weak note as Sensex fell 230 points while Nifty below 10,550, amid higher crude oil prices.
2. Pharma, metals, auto, HDFC twins & Reliance dragged market while PSU banks & technology stocks held the market. Nifty midcap was down 320 points.
3. On Tuesday market snapped 5-Day losing streak as Sensex closed mildly higher while Nifty held 10,550 levels led by short covering.
4. On Wednesday equity indices resumed decline as Sensex fell over 300 points while Nifty below 10,450 on weaker rupee & global weakness.
5. Except PSU Bank index (up 2.84%) all indices ended in red led by Metal, Auto, Realty & FMCG. Nifty midcap index fell over half a percent.
6. On Thursday market gathered strength as Sensex rallied 350 points while Nifty back above 10,500, backed by short covering.
7. On Friday Sensex opened on a higher note while Nifty above 10,550 levels, backed by technology stocks.
Sectoral Index:
- This week midcap & smallcap stocks mostly reacted on earnings as most of the companies disappointed with results. Apart from that domestic political sentiment didnt helped along with higher crude oil prices & weaker rupee. IT, Banking & financials outperform market while Pharma, metal & Auto stocks underperformed.
- Global market especially Asian market traded mix due to uncertainty over trade tariff war between U.S. & China as Trump not satisfied with trade talk. FOMC also warranted another interest rate hike soon which denied any positive sentiment.
Movers & Shakers
The countrys largest bank State Bank of India on Tuesday reported a second consecutive net loss of Rs.7,718 crore for the March quarter, primarily due to a surge in provisions and bad loans. Though the NII grew by 10.53% which beat Reuters poll estimate. Management remained hopeful for coming times as Rajnish Kumar Chairman said that they have good roadmap for next 2 years which helped share price to surge over 10% throughout this week.
State-owned HPCL reported 4% drop in its March quarter net profit on lower refining margins & inventory gains. Total expenses also rose 13.8% while income from operations also rose 13%. Higher crude oil prices & pressure from domestic market to reduce the cost may hurt the margin as well if Govt. decides to cut excise duty on diesel & Petrol. The share price of the HPCL fell over 10% this week.
Key Market Drivers
Rating agency Icra expects GDP growth in January-March 2017-18 at 7.4% on account of good rabi crop harvest and improved corporate earnings, up from 7.2% in the third quarter. As per Icra, the growth of the Indian gross value added at basic prices in year-on-year (YoY) terms is likely to record a considerable recovery to 7.3% in Q4 FY18 from 6.7% in Q3 FY18, thereby rebounding above 7% after a gap of five quarters.
Federal Reserve officials said the economic outlook warranted another interest rate hike soon and signaled they would welcome a modest overshoot of their 2 percent inflation target, indicating they are in no rush to tighten more aggressively. Most participants judged that if incoming information broadly confirmed their current economic outlook, it would likely soon be appropriate for the committee to take another step in removing policy accommodation, minutes released Wednesday of the Federal Open Market Committees May 1-2 meeting said.
Event Watch
Indias GDP quarterly for Q4 (YoY) will be on 31st May 2018. The Central Statistics Office (SCO) will present the GDP number.
India Infrastructure output (YoY) April will be on 31st March 2018. Nikkei Markit Manufacturing PMI (May) will be on 1st June 2018.
Q4FY18- L&T, Oil India, REC, BEL, BHEL, BPCL, M&M, SAIL, Apollo Hospital, NMDC, Coal India, Power Grid, ONGC.
Domestic Automobile sales numbers for May month will be on 1st June 2018
Global:- U.S. GDP (QoQ) for Q1 will be on 30th May 2018. Also U.S. Manufacturing PMI (May) & Unemployment rate will be on 1st June 2018.
Stocks To Watch
GAIL is on the upside while Jet Airways (India) Ltd. is on the downside.
Share Market News 24-May-2018
Sensex Rallied Over 300 Points, Nifty Above 10,500, Led By IT Stocks
The Benchmark indices opened on a positive note, Sensex gained 100 points & Nifty above 10,450, led by some short covering. The equity market extended gain as Sensex rose nearly 200 points while Nifty well above 10,450, despite mix trend in Asian stocks. IT index rose over 2% also pharma, selective banks & financials supported the market while auto down over 1%. Nifty Midcap index fell half a percent.
In afternoon session market traded strong as Sensex surged 250 points while Nifty near 10,500 levels. IT and banking & financials stocks continued to support market while auto & realty index down over 1%. Nifty midcap continued to underperform frontliners as midcap fell over half a percent.
In last hour of trade traded at days high as Sensex surged nearly 300 points while Nifty traded above 10,450. The market gathered strength in late trade on short covering. Expect Auto & Realty all sectoral indices closed in green led by IT, Banking & financials and metal index, was up over 1-3%. Nifty midcap index fell 80 points on weak market breadth. Sensex closed 318.20 points up at 34,663.11, Nifty up by 83.50 points at 10,513.85.
Top Gainers
Bharti Airtel by 4.34% to Rs.372.30, TCS by 3.31% to Rs.3,610.75, Infosys by 2.96% to Rs.1,220, Axis Bank by 2.92% to Rs.535.45, Sun Pharma by 2.53% to Rs.463.70.
Top Losers
Tata Motors by -6.33% to Rs.289.85, GAIL by -5.45% to Rs.305.35, ONGC by -4.39% to Rs.167.70, Grasim by -2.52% to Rs.1,021, HindPetro by -1.10% to Rs.283.85.
Analysis Of Top Gainer And Loser
Bharti Airtel is the top gainer in today's market as company added 8.4 million subscribers in the month of March. The net additions trend showed that the gap between Reliance Jio & Airtel reduced significantly.
Tata Motors is the top loser in today's market as company reported 50% drop in consolidated net profit in Q4 2018. The fall in bottom line was primarily due to Rs.1,641.38 crore impairment of capital work in progress.
Key Market News
Federal Reserve officials said the economic outlook warranted another interest rate hike soon and signaled they would welcome a modest overshoot of their 2 percent inflation target, indicating theyre in no rush to tighten more aggressively. Most participants judged that if incoming information broadly confirmed their current economic outlook, it would likely soon be appropriate for the committee to take another step in removing policy accommodation, minutes released Wednesday of the Federal Open Market Committees May 1-2 meeting said.
The Narendra Modi government today moved to amend the Insolvency and Bankruptcy Code via the ordinance route. The Union Cabinet has approved an ordinance that incorporates changes to the bankruptcy law, Law Minister Ravi Shankar Prasad told reporters at a press briefing. Prasad declined to share details on the changes as the Presidents approval is still awaited.
Stocks To Watch
NCC Ltd. is on the upside while Jet Airways (India) Ltd. is on the downside.
NCC is currently trading at Rs.114.40, up by Rs.9.15 or 8.69% from its previous closing of Rs.105.25 on the NSE. The scrip opened at Rs.106.70 & has touched a high & low of Rs.115.40 and Rs.104.15 respectively. So far 3,45,77,685 (NSE) shares were traded on the counter. The current market cap of the company is Rs.6,871.40 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.141.40 on 10-January-2018 & a 52 week low of Rs.76.20 on 10-August-2017.
Jet Airways is currently trading at Rs.392.95, down by Rs.28.15 or 6.68% from its previous closing of Rs.421.10 on the NSE. The scrip opened at Rs.395.15 & has touched a high and low of Rs.402.80 & Rs.370.05 respectively. So far 1,37,39,326 (NSE) shares were traded on the counter. The current market cap of the company is Rs.4,447.91 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.883.45 on 05-January-2018 and a 52 week low of Rs.370.05 on 24-May-2018.
Share Market News 23-May-2018
Market Resume Decline after A Days Breather, Nifty Below 10,450 Level
The Benchmark indices started on a flat note with Sensex declined 25 points & Nifty above 10,500, despite weakness in Asian peers . The equity market traded mildly lower as Sensex down 60 points while Nifty below 10,500 as Asian markets down. Metals, oil stocks and HDFC twins pulled the market lower but SBI, ICICI Bank, Tata Motors & IT stocks capped losses while midcap traded flat.
In afternoon session market extended losses as Sensex fell 100 points while Nifty below 10,500 levels. Nifty PSU Bank & IT index traded in green while metals, oil, Auto & HDFC twins stocks in red. Midcap also down 0.35%.
In last hour of trade market extended losses as Sensex fell over 200 points while Nifty below 10,450 levels. The market closed sharply lower as selling pressure resumed again on weaker rupee & global weakness. Except PSU Bank index (up 2.84%) all indices ended in red led by Metal, Auto, Realty & FMCG. Nifty midcap index fell over half a percent. Sensex closed 306.33 points down at 34,344.91, Nifty down by 106.35 points at 10,430.35.
Top Gainers
SBIN by 3.76% to Rs.263.45, Tech Mahindra by 2.13% to Rs.701.00, Cipla by 1.91% to Rs.534.00, UPL by 1.26% to Rs.690.90, L&T by 0.82% to Rs.1,330.95.
Top Losers
HindPetro by -8.21% to Rs.263.45, VEDL by -7.21% to Rs.250.50, Tata Steel by -6.16% to Rs.534.00, BPCL by -5.43% to Rs.376.00, ONGC by -5.32% to Rs.175.35.
Analysis Of Top Gainer And Loser
SBIN is the top gainer in today's market despite reporting loss of Rs.7,718 due to high provisions but revenue has improved by 18.6%. Investors cheered management guide for the future prospect.
HindPetro is the top loser in today's market as companys net profit dropped by 4% on lower refining margins & inventory gains. Also due to buzz of excise duty cut on petrol & diesel hurt the sentiment of OMCs.
Key Market News
The rising fuel prices are becoming a concern for the common people. Fuel prices continue to hit new highs for the 10th day in a row today as petrol prices rise by 29 paise in Mumbai and diesel prices rose 28 paise. Petrol prices in Delhi are up by 30 paise. A possible drop in Venezuelas crude output after a disputed presidential election, potential US sanctions on the country as well as the tough stance by US on Iran are the key price drivers.
US President Donald Trump on Tuesday said he is not "satisfied" with the trade talks held with China, despite the fact that earlier this week officials announced a framework agreement to reduce trade tensions with the Asian giant. The US leader said, however, that the talks with China were a start, after the visit to Washington by a Chinese delegation headed by Liu He, the top economic adviser to Chinese President Xin Jinping, Efe reported. In an another news US President Donald Trump yesterday said that he will propose new tax cuts sometime prior to November, when Republicans look to hold on to their majorities in Congress in midterm elections. He did not give any details.
Stocks To Watch
Marksans Pharma Ltd. is on the upside while Hindustan Petroleum Corporation Ltd. is on the downside.
Marksans is currently trading at Rs.28.70, up by Rs.2.80 or 10.81% from its previous closing of Rs.25.90 on the NSE. The scrip opened at Rs.25.75 & has touched a high & low of Rs.30.10 and Rs.25.55 respectively. So far 55,40,454 (NSE) shares were traded on the counter. The current market cap of the company is Rs.1,170.64 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.52.30 on 06-November-2017 & a 52 week low of Rs.25.30 on 14-May-2018.
HPCL is currently trading at Rs.286.25, down by Rs.25.60 or 8.21% from its previous closing of Rs.311.85 on the NSE. The scrip opened at Rs.304.00 & has touched a high and low of Rs.310.65 & Rs.283.55 respectively. So far 1,64,65,140 (NSE) shares were traded on the counter. The current market cap of the company is Rs.43,726.09 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.492.80 on 31-August-2017 and a 52 week low of Rs.283.55 on 23-May-2018.
Share Market News 22-May-2018
Market Snapped 5-Day Losing Streak Led By SBI, Tata Motors
The Benchmark indices opened on a flat note with Sensex was up 30 points & Nifty above 10,500, amid mix Asian cues. The equity market continued to consolidate as Sensex was up 10 points while Nifty above 10,500, amid corporate earnings. All sectoral indices except FMCG & IT traded in green led by Pharma, Auto, Metal & PSU Bank, was up over 1%. Midcap also traded mildly higher.
In afternoon session market traded mildly higher as Sensex rose 50 points while Nifty inched towards 10,550 levels, amid consolidation as investors awaited SBI earnings. Nifty PSU bank, Metal, Auto & Realty index rose over 1% while IT, FMCG & Pvt. bank traded in red. Nifty midcap remained flat.
In last hour of trade market continued to be range-bound as Sensex rose 20 points while Nifty above 10,500 levels. The market snapped 5 day losing streak led by short covering in banks. Among sectors except FMCG & Pvt. banks all ended in green led by PSU bank, Metal, Auto, Pharma & Realty index, was up over 1%. Nifty midcap was up 48 points. Sensex closed 35.11 points up at 34,651.24, Nifty up by 20.00 points at 10,536.70.
Top Gainers
Dr. Reddy by 5.87% to Rs.2,004.20, Bajaj Finserv by 4.84% to Rs.5,999, SBIN by 4.60% to Rs.255.70, Tata Motors by 4.09% to Rs.308.00, Bajaj Auto by 3.51% to Rs.2,816.
Top Losers
IOC by -3.54% to Rs.159.30, Ultratech by -2.63% to Rs.3,751.05, Infratel by -1.76% to Rs.316.05, IndusInd Bank by -1.56% to Rs.1,895, Asian Paints by -1.33% to Rs1,284.40.
Analysis Of Top Gainer And Loser
Dr. Reddy is the top gainer in today's market despite decline in net profit by 3.3% for Q4 2018 but revenue grew 1% led by domestic growth of 16%.
IOC is the top loser in today's market as company reported decline in net profit of 34% for Q4 FY18 despite revenue growth of 4.48%.
Key Market News
Rating agency Icra expects GDP growth in January-March 2017-18 at 7.4% on account of good rabi crop harvest and improved corporate earnings, up from 7.2% in the third quarter. The Central Statistics Office (CSO) is scheduled to come out with GDP estimate for the fourth quarter (Q4) of fiscal 2017-18 and provisional annual estimates for the year 2017-18 on May 31. As per Icra, the growth of the Indian gross value added (GVA) at basic prices in year-on-year (YoY) terms is likely to record a considerable recovery to 7.3% in Q4 FY18 from 6.7% in Q3 FY18, thereby rebounding above 7% after a gap of five quarters.
Leading bourse NSE has dragged the Singapore Exchange (SGX) to court over the overseas bourse's plans to launch Nifty-based derivative products. SGX has, however, reiterated its plan to list the new Indian derivatives in June. SGX has been notified by the National Stock Exchange of India (NSE) of an application made in the Bombay High Court for an interim injunction on our new products," the overseas exchange said in a statement issued today. SGX also said that it has informed NSE that India needs to maintain liquidity in its offshore equity derivatives market.
Stocks To Watch
Stride Shasun Ltd. is on the upside while Mahanagar Gas Ltd. is on the downside.
Stride Shasun is currently trading at Rs.393.55, up by Rs.52.55 or 15.41% from its previous closing of Rs.341.00 on the NSE. The scrip opened at Rs.345.20 & has touched a high & low of Rs.409.20 and Rs.342.00 respectively. So far 1,96,82,946 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,512.11 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.1,002.20 on 24-July-2017 & a 52 week low of Rs.333.30 on 21-May-2018.
MGL is currently trading at Rs.793.10, down by Rs.48.70 or 5.79% from its previous closing of Rs.841.80 on the NSE. The scrip opened at Rs.824.00 & has touched a high and low of Rs.827.00 & Rs.772.15 respectively. So far 22,11,128 (NSE) shares were traded on the counter. The current market cap of the company is Rs.7,803.44 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.1,377.50 on 03-November-2017 and a 52 week low of Rs.772.15 on 22-May-2018.
Share Market News 21-May-2018
Market Post Biggest Losing Streak In 2-Month, Nifty Near 10,500
The Benchmark indices started on marginally higher note as Sensex was up 80 points & Nifty above 10,600, amid positive Asian cues. The equity market traded lower amid consolidation as Sensex fell over 100 points while Nifty below 10,600, amid higher crude oil prices and weaker rupee, dragged by HDFC twins, auto, metals stocks and Reliance while PSU Bank outperformed was up over 15. Nifty midcap underperformed frontliners fell over 1%.
In afternoon session market remained under pressure as Sensex fell 150 points while Nifty traded below 10,550 levels, amid higher crude oil prices. PSU bank index gained over 2% while Nifty Auto, Media, Metal & Pharma fell over 1.5%. Nifty midcap index was down over 1.5%.
In last hour of trade market remained under pressure as Sensex was down over 200 points while Nifty struggled below 10,550 levels. The market ended lower for the 5th consecutive session dragged by pharma, metals, auto stocks, HDFC twins and Reliance while PSU banks & technology stocks held the market. Nifty midcap underperformed frontliners, down 320 points. Sensex closed 232.17 points down at 34,616.13, Nifty down by 79.70 points at 10,516.70.
Top Gainers
SBIN by 2.37% to Rs.244.50, BPCL by 1.95% to Rs.393.90, Coal India by 1.57% to Rs.271.00, TCS by 1.42% to Rs.3,551.80, GAIL by 1.40% to Rs.326.00.
Top Losers
Dr. Reddy by -4.64% to Rs.1,890, Sun Pharma by -4.53% to Rs.443.85, UPL by -3.84% to Rs.682.20, Yes Bank by -3.30% to Rs.334.10, ZEEL by -2.91% to Rs.551.10.
Analysis Of Top Gainer And Loser
SBIN is the top gainer in today's market ahead of Q4 2018 earnings due tomorrow & bank is expected to report loss in this quarter as well.
Dr. Reddy is the top loser in today's market ahead of Q4 March earnings due tomorrow. Company is expected to post good numbers.
Key Market News
The U.S. and China declared a truce in their trade dispute over the weekend, but that will prove temporary if the worlds two largest economies fail to deliver on their vague commitments to re-balance trade. Were putting the trade war on hold, Treasury Secretary Steven Mnuchin said Sunday after the two sides released a joint statement a day earlier. Right now, we have agreed to put the tariffs on hold while we execute the framework. The statement released on Saturday after two days of talks between Chinese Vice Premier Liu He and senior American officials, including Trump isnt seen as a panacea to the months-long conflict.
India is the sixth wealthiest country in the world with a total wealth of $8,230 billion, while the U.S. is the richest nation globally, says a report. According to the AfrAsia Bank Global Wealth Migration Review. Factors that will help in wealth creation in India include large number of entrepreneurs, good educational system, robust outlook for information technology, business process outsourcing, real estate, healthcare and media sectors which will result in a 200% rise 10-year wealth growth forecast, according to the report.
Stocks To Watch
Balrampur Chini Mills Ltd. is on the upside while Indiabulls Real Estate Ltd. is on the downside.
Balrampur Chini is currently trading at Rs.66.75, up by Rs.4.45 or 7.14% from its previous closing of Rs.62.30 on the NSE. The scrip opened at Rs.62.50 & has touched a high & low of Rs.68.50 and Rs.62.50 respectively. So far 1,33,10,292 (NSE) shares were traded on the counter. The current market cap of the company is Rs.1,551.25 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.182.50 on 13-September-2017 & a 52 week low of Rs.58.70 on 16-May-2018.
IBRE is currently trading at Rs.183.60, down by Rs.22.10 or 10.74% from its previous closing of Rs.205.70 on the NSE. The scrip opened at Rs.202.00 & has touched a high and low of Rs.202.00 & Rs.182.70 respectively. So far 86,27,759 (NSE) shares were traded on the counter. The current market cap of the company is Rs.8,823.35 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.269.70 on 07-August-2017 and a 52 week low of Rs.151.10 on 24-May-2017.
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