Election Outcome Concerns Halt Market Rally, Small Dips and Rallies Ahead
Nov 23, 2018 | 15:36 PM IST
Nov 23, 2018 | 15:36 PM IST
Our Analysis
Market started with optimism on state elections but looked poised after voting. Nifty started around 10600 and touched high point around 10780 and corrected back to 10520 levels. This is a range bound pattern showing a puzzled state of both bulls and bears. Indices are following resistance and support levels. Till state election outcome, Indices would prefer giving small dips and small rallies. FII's are still net sellers in Indian equity market whereas DII's are pushing hard to keep the market in a hunt.
This Weeks Market Highlights:
Benchmark Indices:
1. In the Last hour trade market remained higher as the week started with Sensex up by 318 points while Nifty was above 10,700 level.
2. Among sector, pharma, metal, realty & energy stocks were among the major gainers along with all sectoral indices. The nifty midcap index closed 0.41% points higher.
3. On Tuesday selling in 2nd half creates pressure on benchmark indices to close lower as Sensex down by 300 points while Nifty closed near 10,682.
4. In terms of sectors, IT, metals & pharma were among top losers, while auto, financials, and consumption were among top gainers. The nifty midcap index closed a percent lower.
5. On Wednesday equity indices continue to fall on the second day as Sensex fall 275 points while Nifty hold above 10,600.
6. On Thursday market ended lower on the third consecutive day as Sensex down by 218 points while Nifty closed at 10,526.75.
Broader Index & Global Market:
Though the negative earnings surprises undoubtedly played a part in the sell-off of these marquee tech names, its hard to ignore the worsening macro environment and larger anxieties about growth and volatility that are forcing investors to look for safety. Evidence of this trend came from the still thriving retail sector.
During last week's earnings release, Walmart, the largest big-box retailer, reported a rise in quarterly sales and boosted its profit outlook for the year. Its online sales also surged, offering yet more clear proof that it's well on track to take on its main rival, Amazon. The major takeaway from this earnings season: companies are facing cost pressures as wages and interest rates rise. That trend, combined with global growth worries and trade war anxieties, will make it very difficult for even healthy companies to produce stunning earning results going forward.
Movers & Shakers
Shares of Dr Reddys Laboratories jumped more than 6 percent in last weak after the drug maker said the United States Court of Appeals for the Federal Circuit issued a decision in favor of the company, allowed to sell a generic of Indivior Plcs opioid treatment drug Suboxone.Indivior Plc, which holds a patent over the drug, the bulk of its $768 million revenue in the nine months of 2018 came from sales of Suboxone. Dr Reddys will start generating revenues from generic Suboxone earlier than expected, estimates that the launch can add 12% to Dr Reddys FY19 earnings.
Finolex cable reported there result on 16-11-2018 Revenue for the quarter was adversely affected partly due to the transport disruptions during July which disrupted operations at the Roorkee facility, and partly in August/September due to the unprecedented floods in Kerala which is an important market for the Company's products. Both these events contributed to a very marginal volume growth in the Electrical Cables segment. Margins on the Electrical Cables segment were impacted due to commodity price variations as well. Profit for the quarter, after taxes, was Rs.92.9 crores as against Rs 99.7 crores in the previous year - the lower amount partly the result of tax exemptions to the Roorkee facility expiring at the end of the previous fiscal. The stock was down by 6.4%, throughout the weak shown high selling pressure.
Key Market Drivers
The second and final phase of polling in Chhattisgarh Assembly Elections was carried out on Tuesday. Voting took place for 72 of the 90 assembly constituencies of the assembly. Chief Electoral Officer (CEO) of Chhattisgarh Subrat Sahu said that voter turnout was 71.93 percent and there was no untoward incident during the voting process which was completed it peaceful conditions.
As per the present polling percentages announced by the CEO, the average voting percentage in the state has gone down from 77.12 percent in 2013 to 74.10 percent this time. BJP ruling Chhattisgarh since 2003 and this time, there is a three-way fight between BJP, Congress and Ajit Jogi-Mayawati allian
Event Watch
Results of State election will be declared on December 11.
Stocks To Watch
GNA Axles Ltd is on upside while Vakrangee Ltd is on downsid
Share Market News 22-November-2018
Firm Rupee And Slide In Crude Fails To Push Markets, Sensex ends 218 points lower
Equity benchmarks have begun the day on a good note, with Nifty holding 10,600 in the opening tick. The S&P BSE Sensex Index rose as much as 0.32 percent to 35,314 and the NSE Nifty 50 Index rose as much as 10,625.95. Among sectors, energy and IT names are trading in the green, while Nifty Infra was down around half a percent. Strong buying visible in the broader markets, with Nifty Midcap rising over 0.40 percent.
In the afternoon session market traded flat as Sensex was up by 0.18% while Nifty was trading above 10,600. Nifty IT continued to trade in positive note followed by Media & FMCG. while Metal, pharma & PSU banks were showing some weakness. Nifty Midcap 100 was trading above 17,500 mark.
In the last hour of trade Market dragged lower as Sensex was down by 83 points while Nifty was below 10,600 Mark. Indian equity benchmarks ended lower for the third day. Among sectors, financials, consumption, energy, metals, and pharma saw the most losses, while selling was visible in the midcaps space. The S&P BSE Sensex Index ended 0.62 percent lower today at 34,981.02 and the NSE Nifty 50 Index closed at 10,526.75, down 0.69 percent.
Top Gainers
ZEEL by 4.23% to Rs.457.25, ADANIPORTS by 2.01% to Rs 368.50, LT by 0.52% to Rs.1,409.45, HDFC by 0.35% to Rs.1,874.00, INFY by 0.28% to Rs. 620.85.
Top Losers
M&M by -3.02% to Rs.745.90, GRASIM by -2.52% to Rs.842.00, HINDALCO by -2.51% to Rs.217.55, BAJFINANCE by -2.50% to Rs.2,369.80, IOC by -2.37% to Rs. 138.25 .
Analysis Of Top Gainer And Loser
ZEE was a top gainer as Subhash Chandra announced that ZEE to become Indias Netflix. Zee Entertainment Enterprises said it will divest 50 percent of promoter Essel Group's equity in the company to a global strategic partner,for technology backbone and distribution clout worldwide. Technology that blends 3D audio, augmented reality, virtual reality, digital scent, holograms, and touch. Z5X, the companys studio in the US, has already secured patents on the technology.
M&M was the top losses in today's market as selling pressure was seen in the stock, Festive demand had not been great which cause high inventories.
Key Market News
-U.S. Crude Oil Inventories recorded 4.851M compared to forecasts for a stockpile build of 2.50 million barrels, after a build of 10.27 million barrels in the previous week, it implies weaker demand and is bearish for crude prices.
The Finance Ministry investigation arm Indirect Tax Evasion During April-October Stands At Rs 29,088 Crore in 1,835 cases, The total amount of detection was likely to be more as the data does not include detection by field offices of the Central Board of Indirect Taxes and Customs.
WTO agreed to investigate the legality of U.S. tariffs on steel and aluminum imports based on national security concerns, If the trade organization decides in favor of the U.S., the decision could entice the bodys 164 members to use the national security justification to impose protectionist measures for economic gain; if it rules against the U.S., President Donald Trump could decide to leave the WTO entirely.U.K. Public Sector Net Borrowing recorded at 7.96B which was forecasted 5.35B against 1.98B previous Month indicates a budget deficit.
Stocks To Watch
Jamna auto is on the upside while WIPRO is on the downside.
Jamna auto is currently quoting at Rs.73.60, up by Rs.1.40 or 1.94% from its previous closing of Rs.72.20 on the NSE. The scrip opened at Rs.73.00 & has touched a high & low of Rs.76.30 and Rs.72.70 respectively. So far 14,22,333 (NSE) shares were traded on the counter. The current market cap of the company is Rs 2936.68 Crore. The NSE/BSE group stock has touched a 52 week high of Rs. 102.95 on 02-may-18 & a 52 week low of Rs.59.15 on 23-Nov-2017.
WIPRO is currently quoting at Rs.307.40, down by Rs.-6.75 or -2.15% from its previous closing of Rs.314.15 on the NSE. The scrip opened at Rs.315 & has touched a high & low of Rs.318.80 and Rs.306.00 respectively. So far 30,89,809 (NSE) shares were traded on the counter. The current market cap of the company is Rs.1,39,093.78 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.338.00 on 24-SEP-2018 & a 52 week low of Rs 253.50 on 06-JUN-2018.
Share Market News 21-November-2018
Sensex drops 275 pts, Nifty holds 10,600 for now;IT ,Energy Crack.
Equity benchmarks have started lower, with the Nifty trading above 10,650-mark. Nifty bank and Nifty midcap 100 are trading lower by 0.40 % .The Sensex is down 49.91 points or 0.14% at 35424.60, while the Nifty is higher by 5.70 points or 0.05% at 10661.90. The market breadth is positive as 276 shares advanced, against a decline of 112 shares, while 30 shares were unchanged.Oil Marketers Rally On Falling Crude Prices.The Nasdaq Composite index closed at its lowest in more than seven months, while the S&P500 index and Dow index ended at their weakest since late October,Asian shares also traded lower.
In the afternoon session,The benchmark indices are trading lower with Nifty holding above 10,550 level.The Sensex is down 314.06 points at 35164.54, while Nifty down 74.35 points at 10581.30 ,Sell off can be seen in IT with Infy,Tcs,Tech mahindra down by more than 2-3%,following weakness can also be seen in Energy,Metal & media sector.The Nifty midcap100 index are trading flat as compare to major indices. Asian Paints, Yes Bank, Dr Reddys and HPCL are the top gainers.
In the last hour of trade Benchmark indices has shown some recovery as Sensex is down 167.98 points at 35307.90, while Nifty is down 28.40 points at 10,628,strength can be seen from pharma,banknifty & Reality.European equities rallied along with U.S. futures, trimming losses after a slew of declines across assets on Tuesday.
Indian equity benchmarks ended lower for the second day, posting their worst two-day decline in nearly a month.A global sell-off mirrored in the Indian markets as well, while a recovery in crude oil prices weighed on benchmarks.The Nifty IT index was the big loser along with energy stocks as well. Meanwhile, pharmaceuticals and PSU banks were the big gainers. In the broader markets, Nifty Midcap index rose over half a percent.Sensex Index ended 0.77 percent lower at 35,199.80 and the NSE Nifty 50 Index ended at 10,600.05, down 0.53 percent
Top Gainers
DRREDDY by 6.44% to Rs.2600.45, GRASIM by 3.47% to Rs.867, YESBANK by 3.28% to Rs.198.40, BAJAJFINSV by 3.15% to Rs.5,868.00, UPL by 2.87% to Rs.781.00.
Top Losers
TCS by -3.47 to Rs.1,813.00,INFY by -3.41% to Rs.619.50, POWERGRID by -3.40 % to Rs.182.00, TECHM by -2.54% to Rs.691.70, HCLTECH by -2.44% to Rs. 984.35.
Analysis Of Top Gainer And Loser
DRREDDY was a top gainer as strong buying seen in the stock as a court in U.S. ruling allowed the company to sell a generic of Indivior Plcs opioid treatment drug Suboxone.
TCS was the top losses,Selling pressure was seen in overall IT sector. As INR are showing strength from last few session.
Key Market News
The total average turnout for Chhattisgarh 2nd phase polling percentage has been 74.17 per cent, which may go up further. During the first phase of voting on November 12 for 18 seats in the Naxal-affected areas of the state, a total of 76.42 per cent polling was recorded.
The Brent crude fell over 6 percent at $62.53 per barrel on Tuesday, its lowest in nearly a year.U.S. API Weekly Crude Oil reported -1.545M Stock. M3 Money Supply increased by 0.3% recorded 10.3% ,Which show the positive/bullish sign for INR. Indian VIX closed at 19.41 shows higher volatility in market.
Stocks To Watch
UPL is on the upside while VEDANTA is on the downside.
UPL is currently quoting at Rs.781.00, up by Rs.21.80 or 2.87% from its previous closing of Rs.759.20 on the NSE. The scrip opened at Rs.760.00 & has touched a high & low of Rs.784.50 and Rs.760.00 respectively. So far 2,859,978 (NSE) shares were traded on the counter. The current market cap of the company is Rs 39728.73Crore. The NSE/BSE group stock has touched a 52 week high of Rs. 828.50 on 24-Jan-18 & a 52 week low of Rs.537.25 on 19-JUL-2018.
VEDANTA is currently quoting at Rs.201.95, down by Rs.-3.30 or -1.61% from its previous closing of Rs.205.25 on the NSE. The scrip opened at Rs.204 & has touched a high & low of Rs.204.40 and Rs.201 respectively. So far 1,42,69,952 (NSE) shares were traded on the counter. The current market cap of the company is Rs.75,031.61 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.355.7 on 29-JAN-2018 & a 52 week low of Rs.184.75 on 08-OCT-2018.
Share Market News 20-November-2018
Sensex snaps 3-day rally, sheds 300 pts; Nifty stumbles Nifty gives up 10,700; IT, metals & pharma crack
Indian equity Benchmark indices started the day on flat note with Nifty slipped below 10,750 level. Nifty bank and Nifty midcap 100 are trading lower by 0.40 percent.The Sensex is down 88.42 points at 35,686.46, while Nifty down 30.40 points at 10733. About 262 shares have advanced, 502 shares declined, and 34 shares are unchanged. Asian stock markets slipped on Tuesday, extending sharp overnight losses on Wall Street,US indices drop up to 3%. The Indian rupee strengthened for the sixth day in a row against the U.S. dollar, opened 20 paise higher at 71.47.
In the afternoon session,The benchmark indices are trading lower with Nifty holding above 10,700 level. The Sensex is down 124.18 points at 35650.70, while Nifty down 49.90 points at 10713.50, Except Auto all sector Pharma, IT, PSU, metal are trading lower. The Nifty midcap index also traded Lower by 0.23% .
In the last hour of trade market Benchmark indices are under pressure Sensex is down 232.98 points at 35541.90, while Nifty is down 81.40 points at 10,682. European equities fell at the open, extending Mondays decline and tracking losses in U.S. and Asia markets. There was a negative end for the market in todays trade. Selling was visible the most among sectors such as IT, metals and pharmaceuticals. Meanwhile, financials, automobiles and consumption also saw weak trades. Nifty Midcap index ended the day over a percent lower. Sensex closed -300.37 points down at 35,474.51, Nifty down by 107.20 points at 10,656.20.
Top Gainers
GAIL by 2.76% to Rs.343.95, ADANIPORTS by 1.55% to Rs.356, INDUSINDBK by 0.85% to Rs.1,551.00, BAJFINANCE by 0.51%to Rs.2,373.00, ZEEL by 0.31% to Rs.448.20.
Top Losers
YES BANK by -6.10 to Rs.192.30,HINDALCO by -5.91% to Rs.220.60, IBULHSGFIN by -3.78 % to Rs.706.05, DRREDDY by -3.50% to Rs.2,440.00, TATASTEEL by -3.28% to Rs.563.30.
Analysis Of Top Gainer And Loser
GAIL was a top gainer as IOC open to tie up with GAIL for Kolkata city gas distribution ,GAIL has an existing partnership with Greater Calcutta Gas Supply Corporation for city gas which already has a piped gas infrastructure in metropolitan area and some portions of adjoining districts of Kolkata.
YES Banks independent director R Chandrashekhar has stepped down from its board, making it the third resignation in a week,which result in 6.1% decline in a day.
Key Market News
Outcome of Meet between Govt and Rbi -The government and the Reserve Bank of India (RBI) will form a committee within a week to finalise the transfer of surplus from the apex bank to the government,The government expects the Reserve Bank of India (RBI) to announce more measures in the days ahead to address liquidity issues faced by non-banking finance companies,Apart from this, the board also decided to consider a restructuring scheme for loans taken by micro, small and medium enterprises (MSMEs) of upto Rs 25 crore.
2nd phase of Chhattisgarh elections today
BJP holds 43 of the 72 seats going to polls on Tuesday and should be able to hold on to its position in the states 90-member assembly if it can repeat its performance of 2013
In the bond market, the benchmark bond yield fell three basis points to 7.79 percent in the last session. Another open market operation to buyback bonds on Nov. 22 may help sentiment and traders expect a range of 7.75-7.80 percent on the 10-year note.
Stocks To Watch
RELINFRA is on the upside while INFOSYS is on the downside.
Relinfra is currently quoting at Rs.357.00, up by Rs.4.05 or 1.15% from its previous closing of Rs.352.95 on the NSE. The scrip opened at Rs.351.00 & has touched a high & low of Rs.360.50 and Rs.348.65 respectively. So far 47,75,178 (NSE) shares were traded on the counter. The current market cap of the company is Rs 9,357.18Crore. The NSE/BSE group stock has touched a 52 week high of Rs.589.90 on 01-Jan-18 & a 52 week low of Rs.275.10 on 8-oct-2018.
INFOSYS is currently quoting at Rs.640.60, down by Rs.-11.10 or -1.70% from its previous closing of Rs.651.70 on the NSE. The scrip opened at Rs.651.71 & has touched a high & low of Rs.656.00 and Rs.640.10 respectively. So far 53,84,295 (NSE) shares were traded on the counter. The current market cap of the company is Rs.28,00,57.93 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.754.90 on 01-OCT-2018 & a 52 week low of Rs.478.53 on 01-DEC-2017.
Share Market News 19-November-2018
Markets Gain Traction Ahead Of RBI Board Meet Outcome, Sensex up by 318 points
Indian equity benchmarks extended gains for the third day and are poised for their longest winning streak in over a month.NSE Nifty 50 Index rose as much as 0.46 percent to 10.731.45 in the opening session led by the Nifty Pharma Index's 1.2 percent gain followed by Metal sector. The Nifty midcap index traded 50 points higher from previous day market closes.
In the afternoon session, Indian equity benchmarks came off day's high and traded rangebound. the Nifty 50 Index traded at 10,712, up 0.28 percent.A Surge in Pharma, realty, auto & metal stocks pushed the market higher while Oil & Gas index traded lower. The Nifty midcap index also traded inline with frontline indices, traded 0.63% higher.
In the last hour of trade market remained higher as Sensex was up 274.93 points while Nifty above 10,700 level. The market ended on a positive note off days high. Overall sectoral indices ended in green led by Pharma, metal, Energy & realty. The Nifty midcap index closed 0.41% higher. Sensex closed 317.72 points up at 35,774.88, Nifty up by 81.20 points at 10,763.40. Government-RBI meet on NBFC liquidity issues, Rupee Movement could be an event to watch ahead.
Top Gainers
Yes Bank by 7.83% to Rs.205.95, ITC by 2.87% to Rs.284.50, Tata Motors by 2.72% to Rs.184.80, Indusindbk by 2.40%to Rs.1,537.10, Vedanta by 2.27% to Rs.211.5.
Top Losers
IBULHSGFIN by -3.42 to Rs.740, GAIL by -2.19% to Rs.334.70, BAJFINANCE by -1.46 % to Rs.2,367.00, ICICIBANK by -1.10% to Rs.363.50, SBIN by -0.98% to Rs.288.05.
Analysis Of Top Gainer And Loser
Yes Bank surges after the rating agency ICRA affirmed its long-term rating of AA+.
IBULHSGFIN is the top loser in today's market owing to the concerns over Government and Rbi meet regarding the liquidity issues in NBFCs.
Key Market News
Oil prices rose on Monday as traders expected top exporter Saudi Arabia to push producer club OPEC to cut supply towards the end of the year. Front-month Brent crude oil futures, the international benchmark for oil prices, were trading at $67.29 per barrel, up 53 cents, or 0.8 percent, from their last close.
Indian Sugar Mills Association has said that sugar output as of November 15, 2018 has been reported at 11.63 lakh tonnes against 13.73 lakh tonnes year on year.
Stocks To Watch
RELIANCE is on the upside while IBULHSGFIN is on the downside.
Reliance is currently quoting at Rs.1149.65, up by Rs.22.25 or 1.97% from its previous closing of Rs.1127.40 on the NSE. The scrip opened at Rs.1,132.90 & has touched a high & low of Rs.1151.70 and Rs.1131.00 respectively. So far 73,08,981 (NSE) shares were traded on the counter. The current market cap of the company is Rs 7,28,676.677Crore. The NSE/BSE group stock has touched a 52 week high of Rs.1,329.00 on 29-Aug-2018 & a 52 week low of Rs.862.65 on 18-December-2017.
IBULHSGFIN is currently quoting at Rs.740.00, down by Rs.-26.20 or -3.42% from its previous closing of Rs.766.20 on the NSE. The scrip opened at Rs.759.60 & has touched a high & low of Rs.776.00 and Rs.729.70 respectively. So far 89,91,775 (NSE) shares were traded on the counter. The current market cap of the company is Rs.32.189.90 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.1440.00 on 29-January-2018 & a 52 week low of Rs.639.05 on 19-October-2017.
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