Election Results To Set Markets On Fire
Dec 07, 2018 | 14:34 PM IST
Dec 07, 2018 | 14:34 PM IST
Our Analysis
The Reserve Bank of India (RBI) on December 5 kept the repo rate, its key lending rate, unchanged at 6.5 percent, but left the door ajar for reducing loan rates in the coming months if low inflation rates were to persist long enough.
The central bank also sounded bullish about the prospects in the real sector, retaining its 2018-19 GDP growth forecast at 7.4 percent amid strong investment revival signs. RBI governor has cleared his intentions of cutting SLR in upcoming policies. This will help to increase liquidity in the market. Increased liquidity will allow banks to lend more and investors will start investing in the Indian economy.
As compared to last major correction of 2008, this correction was steady. The reason behind this is DIIs continuous inflow of investment. Though FIIs are net sellers in last one year, DIIs kept the market on a surviving side.
This Week's Market Highlights:
Benchmark Indices:
1. In Last hour trade market remained flat as the week started with Sensex up by marginal 46.70 points while Nifty below 10,900 level.
2. Among sector, consumption, IT, metals and PSU banks stocks were among the major gainers while pharmaceuticals were the big losers. Nifty midcap index outperformed frontline indices.
3. On Tuesday in the last hour of trade, Indian equity Benchmark indices were trading on a weak note, Nifty below 10,900 and Sensex closed down 106.69 points at 36134.31.
4. In terms of sectors, auto, banks, consumption, and infra were among weak performer, while IT and pharma were among top gainers. Nifty midcap index closed 0.23 percent lower.
5. On Wednesday equity indices continue to fall on the second day as Sensex fall 249.90 points while Nifty was trading below 10,800 levels.
6. On Thursday market ended lower on the third consecutive day as Sensex down by 572.28 points while Nifty closed at 10,601.20.
Broader Index & Global Market:
The S&P 500 and Dow industrials ended slightly negative but well above their session lows in volatile trading on Thursday as the arrest of a Chinese technology executive fanned fears of US-China tensions over trade, while some beaten-up big technology and internet shares posted gains.
Following a rare midweek US trading holiday, stocks tumbled at the outset of the trading, with the benchmark S&P 500 dropping as much as 2.9 percent. But from midday stocks began paring their losses and the tech-heavy Nasdaq ended in positive territory. Asian stocks fell on Wednesday, dragged by Wall Street's tumble as sharp declines in long-term US Treasury yields and resurgent trade concerns stoked investor worries about global economic growth.
Global equities have been shaken as a flattening US Treasury yield curve - a result of a steep fall in longer-dated yields - fanned recession jitters and as US-China trade conflict woes resurfaced after a temporary lull. Signals from the Federal Reserve last week that it may be nearing an end to its three-year rate hike cycle has pushed the 10-year US Treasury to yield to three-month lows below 3 percent.
Movers & Shakers
The Reliance Communications stock closed higher after the Supreme Court asked Department of Telecom (DoT) to clear the telco's spectrum sale to Reliance Jio Infocomm on a corporate guarantee of Rs 1,400 crore ($201.06 mln). The stock closed 11.92% higher at 14.27 level compared to its previous close of 12.75 on the BSE. The small-cap stock rose 15.45% intraday at Rs 14.72 level. The telecom department had challenged the telecom tribunal TDSAT's order allowing Reliance Communications to sell spectrum to Reliance Jio without providing a bank guarantee. Rcomm stock gained nearly 23% and again settled down after profit booking.
Sun Pharmaceuticals, one of the leading drug manufacturer in the country fell close to 15 % in the previous week as news grapples the companys credibility on corporate governance issue. The company is trying to restore investor confidence after note by a Macquarie brokerage and investor complaint to SEBI last week regarding company's substantial increase in advances to employees accounting to Rs.2240 crore in 2017-18 vs 69.8 crore year ago. The stock is currently trading flat at Rs.419.5 mark.
Key Market Drivers
The state election outcome is about to come in next week. This result will have a dramatic impact on the market as everyone is eyeing state elections as pillars of the General elections held next year. Roll-over data was negative for last month which gives a clear indication of cautious investing by investors. Bulls and bears both are poised as of now and waiting for some recovery signs by the investors.
Budget 2019 talk will start picking up next week. Investors are waiting for our Honorable Finance Minister Mr. Arun Jaitley to throw some pointers on the upcoming Budget session. His commentary is most awaited now and will contribute the major part in the upcoming market trend.
Event Watch
Results of State election will be declared on December 11.
Stocks To Watch
Alok Industries Ltd is on the upside while Mohit Industries Ltd is on the downside.
Share Market News 06-December-2018
Nifty Tastes 10600, Financial, Oil, Metal The Culprits.
Indian equity benchmarks start weak on Thursday as Nifty slipped below 10,750 level. the Sensex is down 199.23 points at 35,685.18, while Nifty down 64.60 points at 10,718.30. All sector were trading lower led by the BSE Metal Index's 1.75 percent fall. Realty, oil & gas, telecom, and basic materials indices also fell over a percent each.Mid- and small-cap stocks were also facing selling pressure as the BSE MidCap Index fell 0.8 percent and the BSE SmallCap Index declined 0.6 percent.
In the afternoon session, Equity benchmarks continued to trade lower. The Sensex is down 356.1 points or 0.99% at 35524.64, while the Nifty is lower by 124.90 points or 1.16% at 10658.20. Among sectors, all are trading in red with reality almost down by 3%.
In the last hour of trade, Indian equity Benchmark indices were trading on days low, Nifty below 10,650 marks. Indian equity benchmarks extended decline to the third day ahead of crucial OPEC meeting later today and state elections exit poll. The Sensex was down 572.28 points at 35,312.13, while Nifty was down 181.70 points at 10,601.20. About 745 shares have advanced, 1778 shares declined, and 150 shares are unchanged. The broader markets also fell in line with frontliners as the Nifty Midcap slipped 1.62 percent.
Top Gainers
SUNPHARMA by 1.11% to Rs 417.55. ,JSWSTEEL by 0.54% to Rs 306.00,GAIL by 0.19% to Rs 350.00., POWERGRID by 0.03% to Rs 183.55.
Top Losers
IBULHSGFIN By -5.97% to Rs730.00.,MARUTI by -4.67% to Rs 7,201.00,BAJAJFINSV by -4.43% to Rs 5,641.00.,TECHM by -4.38% to Rs.695.00 , TATAMOTORS by -3.96% to Rs 162.50.
Analysis Of Top Gainer And Loser
SUNPHARMA is the top gainer in today's market as recovery was seen in the stock after steep correction in last 3 sessions.
IBULHSGFIN is the top loser in today's market owing to intense selling pressure.
Key Market News
Australia Trade Balance recorded 2.316B, Expected 3.100B. A lower than expected reading can be taken as negative/bearish for the AUD.
Sovereign bonds are expected to extend their rally after the central bank signaled it may expand debt purchases until March through open market operations. The rally in bonds saw the yield on the benchmark note dropping to its lowest since April.
The Reserve Bank of India has asked lenders to link all new floating-rate loans to external benchmarks to improve transparency. Starting April 1, Banks will have the discretion to decide on the spread at the inception of the loan but that should remain constant over the period of the loan unless there is a change in the borrowers credit score. The external benchmarks that the banks can choose from include: The 91-day T-bill yield, The 182-day T-bill yield, Any other benchmark market interest rate produced by the FBIL.
Saudi Arabia, Russia and other members of the OPEC+ group recommended an oil production cut, but their meeting didnt agree on how big any reduction should be. Ministers from the core OPEC group, which doesnt include Russia, will now meet on Thursday to seek a consensus on exactly who will cut and by how much. While Saudi Arabia, the groups biggest producer, will shoulder most of the burden, the kingdom wants commitments from other countries before completing a final deal.
Stocks To Watch
Siemens Limited is on the upside while VIP Industries is on the downside.
Siemens Limited is currently quoting at Rs.921.05, up by Rs 14.70 or 1.62% from its previous closing of Rs.906.35 on the NSE. The scrip opened at Rs.912.35 & has touched a high & low of Rs.946.55 and Rs.902.75 respectively. So far 19,79,028(NSE) shares were traded on the counter. The current market cap of the company is Rs 32,834.29 Crore. The NSE/BSE group stock has touched a 52 week high of Rs. 1336.00 on 01-FEB-18 & a 52 week low of Rs.850.25 on 09-OCT-2018.
VIP INDUSTRIES is currently quoting at Rs.510.05, down by Rs.-13.20 or -2.52% from its previous closing of Rs.523.25 on the NSE. The scrip opened at Rs.517.00 & has touched a high & low of Rs.519.00 and Rs.500.05respectively. So far 2,69,525(NSE) shares were traded on the counter. The current market cap of the company is Rs.7,214.25Crore. The BSE/NSE group stock has touched a 52 week high of Rs.647.00 on 28-AUG-2018 & a 52 week low of Rs 287.10 on 19-MAR-2018.
Share Market News 05-December-2018
Markets Not Impressed With RBI Policies, Continues Downtrend For The Second Day.
Indian equity benchmarks fell sharply ahead of Reserve Bank of India's monetary policy decision & weak global cues. The Sensex is down 166.52 points at 35967.79, while Nifty is down 51.50 points at 10818. All sector compiled by BSE were trading lower led BSE Metal Index's 1.2 % fall., The border market mid & small-cap shares were in line with larger peers as the MidCap and SmallCap Indices fell 0.4 percent each.
In the afternoon session, Equity benchmarks continued to trade lower ahead of RBI meeting outcome. The Sensex is down 244.16 points or 0.68% at 35889.64, while the Nifty is lower by 84.04 points or 0.77% at 10785.20. Among sectors, all are trading in red with metal almost down by 3%.
In the last hour of trade, Indian equity Benchmark indices are under pressure Nifty is trading below 10,800 level. Indian equity benchmarks extended decline to the second day after the Reserve Bank of India maintained its hawkish stance on inflation while maintaining status quo on rates. the Sensex was down 249.90 points or 0.69% at 35884.41, while the Nifty was lower by 80.20 points or 0.74% at 10789.30. Selling was visible across all major sectors, with automobiles, banks, consumption, infrastructure, metals, and pharma ending in the red. The Nifty Midcap was down over a percent.
Top Gainers
HINDUNILVR by 2.45% to Rs. 1,852.00, HDFC by 1.60% to Rs 1,970.50, INFRATEL by 1.24% to Rs.258.00, HCLTECH by 0.95% to Rs.1,046.05, HDFCBANK by 0.84% to Rs. 2,103.00.
Top Losers
SUNPHARMA by -5.80% to Rs. 417.20, HINDALCO by -5.19% to Rs 221.25, TATASTEEL by -4.03% to Rs.516.50, IBULHSGFIN by -3.94% to Rs. 772.00, VEDL by -3.93% to Rs. 198.10 .
Analysis Of Top Gainer And Loser
Hindustan Unilever is the top gainer in today's market as Company will merge GlaxoSmithKline Consumer Healthcare Ltd with itself for an all-equity transaction worth Rs 31,700 crore. The deal would bring the brand of Horlicks, a malted-milk, in Hindustan Unilever's portfolio
SUNPHARMA was the top loser in today's market as the Securities and Exchange Board of India is likely to reopen an insider trading case against Sun Pharmaceutical Industries Ltd. as well as probe alleged lapses by some of its promoters and other entities in raising funds overseas.
Key Market News
India Nikkei Services Purchasing Managers Index (PMI) recorded 53.7 against 52.2 last month.
Australia Gross Domestic Product (GDP) QoQ reported 0.3%, forecasted 0.6%.
Brexit, May lost three key votes on a day of drama in the House of Commons highlighting the weakness of her position. On Dec. 11, Parliament will vote finally on whether to accept or reject the withdrawal agreement that May and the EU reached in November.
Key highlights from RBI's policy decision:
MPC keeps the repo rate unchanged at 6.5 percent, votes 6-0 to keep repo rate on hold and 5-1 to keep stance at 'calibrated tightening'. Cuts H2 FY19 inflation forecast to 2.7-3.2 percent from 3.9-4.5 percent earlier
MPC retains FY19 GDP growth projection at 7.4 percent RBI approves linking floating rate loans to an external benchmark MPC maintains status quo on rates; cuts inflation forecast.
Stocks To Watch
TECHM is on the upside while TATA CHEMICALS is on the downside.
TECHM is currently quoting at Rs.728.00, up by Rs 4.45 or 0.62% from its previous closing of Rs.723.55 on the NSE. The scrip opened at Rs.711.05 & has touched a high & low of Rs.739.90 and Rs.711.05 respectively. So far 48,64,922(NSE) shares were traded on the counter. The current market cap of the company is Rs 71,379.32Crore. The NSE/BSE group stock has touched a 52 week high of Rs. 780.80 on 03-OCT-18 & a 52 week low of Rs.462.65 on 05-DEC-2017.
TATA CHEMICALS is currently quoting at Rs.666.00, down by Rs.-17.30 or -2.53% from its previous closing of Rs.683.30 on the NSE. The scrip opened at Rs.682.50 & has touched a high & low of Rs.683.65 and Rs.665.00 respectively. So far 7,21,646(NSE) shares were traded on the counter. The current market cap of the company is Rs.16,984.60Crore. The BSE/NSE group stock has touched a 52 week high of Rs.787.50 on 04-MAY-2018 & a 52 week low of Rs 622.00 on 09-OCT-2018.
Share Market News 04-December-2018
Despite IT, Pharma Trade Higher, Sensex closes over 100 points lower
Benchmark indices started the day on the flat note with Nifty was trading below 10,900. BSE Sensex was up 2.63 points or 0.01% at 36243.63, and the Nifty up 1.20 points or 0.01% at 10885. Ten of 19 sectors compiled by BSE were trading lower dragged by the Realty Index's 0.55 percent drop. On the flip side, the Oil & Gas Index was the top gainer, up 0.5 percent.Mid- and small-cap shares were underperforming their larger peers as the MidCap and SmallCap Indices rose over 0.15 percent each.
In the afternoon session, Indian equity Benchmark indices continue to trade lower on Tuesday with Nifty is hovering around 10,850 level, while Sensex is down nearly 170 points, About 982 shares have advanced, 922 shares declined, and 110 shares are unchanged. Nifty Midcap 100 was trading lower down by 20 pts.
In the last hour of trade, Indian equity Benchmark indices were trading on a weak note, Nifty below 10,900. Indian equity benchmarks closed lower, ahead of RBIs monetary policy committee meeting outcome on Wednesday. Sensex closed down 106.69 points or 0.29% at 36134.31, while the Nifty was lower by 14.30 points or 0.13% at 10869.50. Among sectors, weakness was visible among auto, banks, consumption, and infra, while IT and pharma index ended in the green. The Nifty Midcap index was lower by around 0.23 percent.
Top Gainers
BPCL by 2.79% to Rs. 333.00, ONGC by 2.60% to Rs 146.20, UPL by 2.58% to Rs.751.50, IBULHSGFIN by 2.49% to Rs.802.55, IOC by 2.18% to Rs. 135.70.
Top Losers
SUNPHARMA by -2.72% to Rs. 443.00, M&M by -2.55% to Rs 741.65, GRASIM by -2.26% to Rs.845.00, HDFC by -1.91% to Rs. 1,942.85, SBIN by -1.46% to Rs. 282.60 .
Analysis Of Top Gainer And Loser
BPCL is the top gainer in today's market as strong buying was seen in the stock.
Sun Pharma highlighted that there was no wrongdoing and gave clarity on the recent queries raised on the company. Founder Dilip Shanghvi said that the points raised in the sales note pertained to information which was sourced from the public domain. He added that while few of the issues were not related to the company, and some were factually incorrect and were 10-15 years. He also said that the company had not received any communication from the SEBI on reopening the insider trading case. The investor has shown less believe and crack the stock for the 2nd consecutive trading day, ending with top loser on NSE.
Key Market News
The German Manufacturing Purchasing Managers' Index (PMI) reported 51.8, forecasted 51.6. A higher than expected reading can be taken as positive/bullish for the EUR.
U.K. Manufacturing Purchasing Managers Index (PMI) recorded 53.1, Expected 51.6.A higher than expected reading can be taken as positive/bullish for the GBP
India and the US have agreed to accelerate defence and security ties as Defence Minister Nirmala Sitharaman met her American counterpart James Mattis, who described India as a "stabilizing force" across the Indo-Pacific and the globe.
US Defence Secretary Mattis welcomed Sitharaman to the Pentagon on Monday for the fourth set of talks the two defence leaders have held this year. Sitharaman, the first woman defense minister of India, is currently on a five-day maiden trip to the US. From here, she will travel to California to visit the Defense Innovation Unit of the Department of Defense and the Indo-Pacific Command headquarters in Hawaii.
Rating agency Moodys Investors Services outlook for Indian banks over the next 12-18 months is stable as the pace of bad asset accumulation slowed.Our outlook for the Indian banking system is stable, underpinned by healthy economic growth, and weak but stabilizing asset quality, Moodys vice-president and senior credit officer, Srikanth Vadlamani, said.
Stocks To Watch
WIPRO is on the upside while BHARTI INFRATEL is on the downside.
WIPRO is currently quoting at Rs.334.45, up by Rs.6.20 or 1.89% from its previous closing of Rs.328.25 on the NSE. The scrip opened at Rs.328.25 & has touched a high & low of Rs.341.25 and Rs.325.70 respectively. So far 59,71,908(NSE) shares were traded on the counter. The current market cap of the company is Rs 1,51,535.08 Crore. The NSE/BSE group stock has touched a 52 week high of Rs. 341.25 on 04-DEC-18 & a 52 week low of Rs.253.50 on 06-JUN-2017.
BHARTI INFRATEL is currently quoting at Rs.254.70, down by Rs.-1.30 or -0.51% from its previous closing of Rs.256.00 on the NSE. The scrip opened at Rs.255.70 & has touched a high & low of Rs.257.00 and Rs.252.50 respectively. So far 40,28,606(NSE) shares were traded on the counter. The current market cap of the company is Rs.47,054.03Crore. The BSE/NSE group stock has touched a 52 week high of Rs.388.45 on 04-DEC-2017 & a 52 week low of Rs 242.25 on 04-OCT-2018.
Share Market News 03-December-2018
Sensex ends flat, Nifty fails to close above 10,900
Indian equity benchmarks extended gains for the sixth day and are set for their longest winning streak in over four months, The Sensex was up 234.77 points or 0.65% at 36429.07, and the Nifty higher by 54.60 points or 0.50% at 10931.40. Metals were trading strong, followed by consumption and banking names, while IT stocks were performing well too. The Nifty Midcap was up over half a percent.
In the afternoon session, Indian equity benchmarks erased gains dragged by Sun Pharma, Reliance Industries and Mahindra & Mahindra. the Sensex was up 30.13 points at 36,224.43, while Nifty was up by 1.60 points at 10, 878.40. About 1212 shares have advanced, 937 shares declined, and 107 shares are unchanged. Broader market Nifty MIdcap 100 was trading Higher up by 113.40 pts.
In the last hour of trade, Benchmark indices were trading flat with Nifty below 10,900. Indian equity benchmarks rose for the sixth straight day, with NSE Nifty 50 Index clocking its longest winning streak since April, Sensex rose 0.13 percent or 46.70 points to 36,241 while the NSE Nifty 50 Index was little changed at 10,883.75. Consumption, IT, metals and PSU banks were the big gainers, while the Nifty Midcap index outperformed front line indices. Pharmaceuticals were the big losers, with the Nifty Pharma ending over 2 percent lower.
Top Gainers
IBULHSGFIN by 9.98% to Rs. 787.00, YESBANK by 4.92% to Rs 178.15, HINDUNILVR by 4.68% to Rs.1,836.00, VEDL by 3.63% to Rs.202.95, GAIL by 3.50% to Rs. 355.05.
Top Losers
SUNPHARMA by -7.53% to Rs. 455.50, HINDPETRO by -3.49% to Rs 224.25, M&M by -3.47% to Rs.763.45, UPL by -2.76% to Rs. 736.90, ZEEL by -2.45% to Rs. 476.65
Analysis Of Top Gainer And Loser
IBULHSGFIN is the top gainer in today's market as The Company on November 29, 2018, allotted its Eighth tranche of Secured, Redeemable, Non-Convertible Debentures of face value Rs 10 lakh each (NCDs) aggregating to Rs 200 crore, the company is in the process of issuing secured, redeemable, non-convertible debentures of face value Rs 10 lakh each aggregating Rs 20,000 crore, on a private placement basis.
Shares of the country's largest pharmaceutical company fell as much as 10.3 percent, the most since May 2017, to Rs 442 ,The stock was the worst performer on Sensex and Nifty, The Securities and Exchange Board of India is likely to reopen an insider trading case against Sun Pharmaceutical Industries Ltd. as well as probe alleged lapses by some of its promoters and other entities in raising funds overseas. The stock closed -7.53% trading at 455.50.
Key Market News
Fiscal deficit reaches 103.9 percent of full-year target in October, Reported 6,485.80B. vs 5,947.32B MoM. GDP growth drops to 7.1 percent in the second quarter.
Indias manufacturing activity strengthened in November, posting its highest levels since December 2017. The Nikkei India Purchasing Managers Index rose to 54 in November, from 53.1 in the previous month. FPI inflow hit a 10-month high of Rs 12,260 crore in November.
U.S. President Donald Trump and Chinese President Xi Jinping agreed to keep their trade war from escalating with a promise to halt the imposition of new tariffs for 90 days as the worlds two largest economies negotiate a lasting agreement. The truce between the U.S. and China emerged after a highly anticipated dinner Saturday between Trump and Xi on the sidelines of the Group of 20 summits in Argentina. Qatar will withdraw from the Organization of Petroleum Exporting Countries from Jan. 1, Minister of State for Energy Affairs Saad Sherida Al-Kaabi said in Doha. The decision to withdraw is technical and country intends to focus on natural gas production; it will not be bound by OPECs agreements after exiting from the group, Al-Kaabi said at a press conference in Doha.
Stocks To Watch
HINDUNILVR is on the upside while RELINFRA is on the downside.
HINDUNILVR is currently quoting at Rs.1,836.00, up by Rs.82 or 4.68% from its previous closing of Rs.1,754.00 on the NSE. The scrip opened at Rs.1,769.50 & has touched a high & low of Rs.1,838.30 and Rs.1,748.05 respectively. So far 43,10,053(NSE) shares were traded on the counter. The current market cap of the company is Rs 3,95,243.25 Crore. The NSE/BSE group stock has touched a 52 week high of Rs. 1,838.30 on 03-DEC-18 & a 52 week low of Rs.1,241.20 on 24-DEC-2017.
RELINFRA is currently quoting at Rs.330.95, down by Rs.-0.35 or -0.11% from its previous closing of Rs.331.30 on the NSE. The scrip opened at Rs.334.00 & has touched a high & low of Rs.339.10 and Rs.326.10 respectively. So far 40,51,303(NSE) shares were traded on the counter. The current market cap of the company is Rs.8,733.90 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.589.90 on 01-JAN-2018 & a 52 week low of Rs 275.10 on 08-OCT-2018.
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