FMCG & Auto Stocks Shine In A Range-Bound Market; Nifty At 10,800

IT, Pharma, Metal Stocks Push Markets to New Highs

Our Analysis

This week, benchmark indices traded rangebound as Nifty traded in a range of 10,600 to 10,780 levels due to uncertainty on global cues & Karnataka state election result. Once again IMF said that India is expected to grow at 7.4% this fiscal & 7.8% further. The week saw some top banks report Q4 numbers & as expected they reported numbers were weak due to higher provisions but growth looked strong. For the coming week, Karnataka election result can set a trend for market & also domestic data will be watched closely as higher crude oil prices can hamper inflation target for RBI.

This Weeks Market Highlights:

Benchmark Indices:

1. The benchmark indices began the week on a strong note.

2. Sensex surged nearly 300 points while Nifty ended well above 10,700.

3. Barring IT & Pharma all other sector indices closed on the positive side led by PSU Bank, Metal, FMCG, Auto & Realty. Nifty midcap also rose 0.75%.

4. On Tuesday, volatility was seen in the market as Sensex closed flat while Nifty was above 10,700.

5. On Wednesday, equity indices closed higher as Sensex rose over 100 points while Nifty was a tad below 10,750. Midcap ended 0.50% lower.

6. On Thursday, the market halted the 3-day gain streak as Sensex closed below 35,300 while Nifty was able to hold 10,700.

7. On Friday, the market traded on a positive note ahead of Karnataka state election as Sensex traded above 35,300 while Nifty was above 10,750.

Sectoral Index:

- This week, like last week, the broader market underperformed frontliners though some stock specific buying was seen in midcaps. Among sectoral index Pharma, IT, OMCs, Realty remained under pressure while Banking, FMCG, Auto index witnessed strong buying.

- This week global market remained volatile as the U.S has announced that it will withdraw from 2015 accord to curb Iran's nuclear programme & reinstate financial sanctions on the Islamic Republic.

Movers & Shakers

Shares of ICICI Bank rose more than 10% this week despite poor performance. Indias largest private sector lender, ICICI Bank reported a 49.6% (YoY) drop in net profit at Rs.1,020 crore for the Q4 ending March 2018 largely in-line with Reuters estimate. But most of the brokerage firms maintained a positive outlook for the bank because of healthy Casa growth and focus on de-risking.

Shares of Kerala-based Federal Bank plunged over 15% this week as the bank reported a 44% fall in net profit in the March quarter, mainly due to a sharp rise in provisions for bad loans. The lender recognised Rs.872 crore of slippages mainly to comply with the central banks February stipulations that had tightened norms for bad-loan resolution. The bank recorded a 25% growth in advances during the quarter, led by a 36% increase in corporate loans, or advances to companies.

Key Market Drivers

The Indian economy is expected to grow at 7.4% in the current fiscal and accelerate further to 7.8% as it recovers from the impact of demonetisation and Goods and Services Tax (GST) rollout, the International Monetary Fund (IMF) said on Wednesday. Asia continues to be the main engine of the world's economy, accounting for more than 60% of global growth - three-quarters of which comes from China and India alone, as per IMF's Regional Economic Outlook: Asia and Pacific (REO).

President Donald Trump said the U.S. will withdraw from the landmark 2015 accord to curb Iran's nuclear program and reinstate financial sanctions on the Islamic Republic, opening an uncertain new chapter for the Middle East. His decision, widely anticipated by allies and analysts, was intended to force Iran to renegotiate an agreement the country's leaders have said they will not revisit. Trump's political opponents warned he could lead the U.S. into another Mideast war.

Event Watch

Karnataka State election results will be on 15th May 2018.

Indias WPI Inflation & CPI data (YoY April)will be presented on 14th May 2018 while Trade Balance will be on 15th May 2018.

Q4FY18- Hindustan Unilever, ITC, Axis Bank, Hindalco, Lupin, Britannia, MRPL, JSW Steel, TVS Motors, Bajaj Finance, Bajaj Finserv, Amara Raja, Ashok Leyland, Bajaj Auto.

Global:- US Industrial Production for April (MoM & YoY) & Manufacturing production for April (MoM) data will be presented on 16th May 2018.

Stocks To Watch

Asian Paints is on the upside while Indian Bank is on the downside.

Share Market News 10-May-2018

Sensex, Nifty Halts 3-Day Gains, Nifty Midcap Cracked 1.5%

The Benchmark indices opened on good note with Sensex was up over 100 points & Nifty well above 10,750 mark. The equity market paired some morning gains as Sensex was up 50 points while Nifty held 10,750 levels. Baring IT & OMCs all the sectors remained under pressure led by Realty, Pharma, PSU Bank. Midcaps too are trading lower, fell nearly 1% on the Nifty Midcap index.

In afternoon session equity benchmark erased gains to trade lower as Sensex fell over 50 points while Nifty slipped below 10,750. Baring Oil & Energy stock all the sectoral stocks traded lower, led by Realty, Pharma, Metal, PSU bank & IT. Nifty midcap underperformed frontliners, was down over 1%.

In last hour of trade market continued to consolidate as Sensex was down 50 points while Nifty still below 10,750 mark. The market ended at days low as midcap underperformed with 1.5% cut. Except the oil & gas space, all sectoral indices ended in red led by Realty, Pharma, PSU Bank, Metal & FMCG. Sensex closed 73.08 points down at 35,246.27, Nifty down by 25.15 points at 10,716.55.

Top Gainers

ONGC by 2.73% to Rs.187.85, Bharti Airtel by 2.00% to Rs.410.50, Eicher Motors by 1.43% to Rs.30,750, Tech Mahindra by 1.33% to Rs.662.80, BPCL by 1.18% to Rs.390.00.

Top Losers

Dr. Reddy by -3.47% to Rs.1,992.70, IBULHSGFIN by -2.54% to Rs.1,204.90, Tata Motors by -2.47% to Rs.333.50, Cipla by -2.36% to Rs.574.10, Power Grid by -1.86% to Rs.207.90.

Analysis Of Top Gainer And Loser

ONGC is the top gainer in today's market as strong buying volume was seen in the stock.

Dr. Reddy is the top loser in today's market as overall pharma sector remained under selling pressure.

Key Market News

The auto sector has started the new financial year 2018-19 with a strong sales growth of 17.44% to 23,79,718 units in the domestic market, according to the latest SIAM data. While passenger vehicles grew 7.5% to 2,98,504 units, the highest growth was witnessed by the van segment up utility vehicles came next with a step up of 11.92% and passenger cars grew marginally at 4.89%. Commercial vehicles posted a robust 75.95% uptick to 72,993 units with MHCVs leading the attack with a sales growth of 169.26% to 28,547 units while LCVs recorded a sales step up of 43.92% to 44,446 units.

The Indian economy is expected to grow at 7.4% in the current fiscal and accelerate further to 7.8% as it recovers from the impact of demonetisation and Goods and Services Tax (GST) rollout, the International Monetary Fund (IMF) said on Wednesday. Asia continues to be the main engine of the worlds economy, accounting for more than 60% of global growth - three-quarters of which comes from China and India alone, as per IMFs Regional Economic Outlook: Asia and Pacific (REO).

Stocks To Watch

Welspun Enterprises Ltd. is on the upside while The Federal Bank Ltd. is on the downside.

Welspun Enterprises is currently trading at Rs.170, up by Rs.16.75 or 10.93% from its previous closing of Rs.153.25 on the NSE. The scrip opened at Rs.155.40 & has touched a high & low of Rs.174.80 and Rs.155 respectively. So far 50,41,727 (NSE) shares were traded on the counter. The current market cap of the company is Rs.2,508.06 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.197.65 on 10-January-2018 & a 52 week low of Rs.84.35 on 25-May-2017.

Federal Bank is currently trading at Rs.89.55, down by Rs.11.60 or 11.47% from its previous closing of Rs.101.15 on the NSE. The scrip opened at Rs.93.10 & has touched a high and low of Rs.93.50 & Rs.88.10 respectively. So far 12,55,25,242 (NSE) shares were traded on the counter. The current market cap of the company is Rs.17,637.70 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.127.65 on 17-October-2017 and a 52 week low of Rs.87.30 on 06-February-2018.

Share Market News 09 May 2018

Market Rose For 3rd Day, Nifty Still Below 10,750, IT Stocks Lead

The Benchmark indices began the on a lower note with Sensex was down 50 points & Nifty held 10,700. The equity market continued to trade flat as Sensex was up 27 points while Nifty stayed above 10,700 levels. Barring IT & Metal (was up over 1%) all sectoral indices traded in red led by OMCs & banking stocks remained under profit booking. Nifty midcap too traded lower.

In afternoon session sharp surged seen in equity benchmark as Sensex rose over 150 points while Nifty traded above 10,750 levels, led by Tata Motors, Reliance & TCS. Reversal of losses in financials along with a surge in metals and IT & Auto names are pushing indices higher. Midcap continued to trade lower.

In last hour of trade market continued to trade higher as Sensex was up 100 points while Nifty slipped below 10,750 mark. The market closed on a positive note after trading in a narrow range. Among sectors, PSU banking stocks remained the laggard along with pharma and FMCG stocks while IT supported the market. Nifty midcap closed lower by half a percent. Sensex closed 103.03 points up at 35,319.35, Nifty up by 23.90 points at 10,741.70.

Top Gainers

Tata Motors by 2.80% to Rs.341.45, Titan by 1.82% to Rs.985.75, Tata Steel by 1.41% to Rs.604,75, Yes Bank by 1.41% to Rs.348.15, UPL by 1.39% to Rs.731.50.

Top Losers

Ultratech by -2.41% to Rs.3,966, BPCL by -1.94% to Rs.385.00, Lupin by -1.41% to Rs.763.90, Bajaj Finance by -1.09% to Rs.1,848, HPCL by -1.07% to Rs.303.70.

Analysis Of Top Gainer And Loser

Tata Motors is the top gainer in today's market as as Jaguar Land Rover (JLR) sales grew at an annual 11.90% to 45,180 units for April. The sales of its subsidiary were primarily driven by introduction of new models, including the Range Rover Velar, the Land Rover Discovery and the Jaguar E-PACE.

Ultratech Cement is the top loser in today's market as some selling pressure was seen in the stock.

Key Market News

President Donald Trump said the U.S. will withdraw from the landmark 2015 accord to curb Irans nuclear program and reinstate financial sanctions on the Islamic Republic, opening an uncertain new chapter for the Middle East. His decision, widely anticipated by allies and analysts, was intended to force Iran to renegotiate an agreement the countrys leaders have said they will not revisit. Trumps political opponents warned he could lead the U.S. into another Mideast war.The exit throws plans for billions of dollars of investments by European companies into disarray. Oil rebounded to trade at the highest level since 2014 as investors focused on how Iranian crude buyers will react to sanctions aimed at cutting exports from OPECs third-largest producer.

China and IndiaAsias first and third largest economies, respectivelyshould aim for growth-friendly fiscal consolidation to promote sustainable, inclusive growth while enhancing resilience as the two countries together contribute 45% to global growth, the International Monetary Fund (IMF) said on Wednesday.

Stocks To Watch

Firstsource Solutions Ltd. is on the upside while Greaves Cotton Ltd. is on the downside.

FSL is currently trading at Rs.70.85, up by Rs.6.40 or 9.93% from its previous closing of Rs.64.45 on the NSE. The scrip opened at Rs.65.00 & has touched a high & low of Rs.74.50 and Rs.64.80 respectively. So far 4,30,68,512 (NSE) shares were traded on the counter. The current market cap of the company is Rs.4,962.40 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.74.50 on 09-May-2018 & a 52 week low of Rs.30.35 on 15-June-2017.

Greaves Cotton is currently trading at Rs.138.85, down by Rs.6.25 or 4.31% from its previous closing of Rs.145.10 on the NSE. The scrip opened at Rs.145.00 & has touched a high and low of Rs.145.85 & Rs.138.55 respectively. So far 14,18,290 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,394.47 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.170.80 on 26-July-2017 and a 52 week low of Rs.112.35 on 18-December-2017.

Share Market News 07-May-2018

Sensex Surged Nearly 300 points, Nifty Well Above 10,700-Mark

The Benchmark indices began the week on a good note with Sensex gained over 100 points & Nifty traded around 10,650 mark. The equity market continued to trade higher as Sensex still up over 130 points while Nifty above 10,650 levels. Baring Nifty Pharma (down over 1%) all sectoral indices traded in green led by FMCG, PSU Bank, Realty & Metal, rose over a percent. Nifty midcap also traded in line with frontliners.

In afternoon session equity benchmark gathered momentum as Sensex rose over 200 points while Nifty inched towards 10,700 mark. Nifty PSU bank surged 2% followed by Metals, FMCG, Auto & Realty while Pharma & IT traded in red. Nifty also traded almost at par with frontline indices.

In last hour of trade market traded at days high as Sensex surged over 250 points while Nifty traded above 10,700 mark. The market closed on a strong note as both indices closed at days high on Monday. Barring IT & Pharma all other sector indices closed in positive territory led by PSU Bank, Metal, FMCG, Auto & Realty. Nifty midcap also rose 0.75%. Sensex closed 292.76 points up at 35,208.14, Nifty up by 97.25 points at 10,715.50.

Top Gainers

GAIL by 4.32% to Rs.344.00, M&M by 3.77% to Rs.886.50, ICICI Bank by 3.59% to Rs.293.00, Axis Bank by 3.04% to Rs.536.10, Hindalco by 2.79% to Rs.237.80.

Top Losers

Lupin by -2.61% to Rs.774.85, Dr. Reddy by -1.88% to Rs.2,067, TCS by -1.52% to Rs.3,428, Coal India by -1.44% to Rs.267.40, Cipla by -1.02% to Rs.590.90.

Analysis Of Top Gainer And Loser

GAIL is the top gainer in today's market as strong delivery basis buying was seen in the stock.

Lupin is the top loser in today's market after Credit Suisse highlighted concerns over the volume loss in its diabetes franchise. The brokerage sees a downside of 9 percent on the stock. It said that there is massive volume loss in diabetes franchise in the US and has cut earnings and target.

Key Market News

The commerce ministry has decided to formulate a comprehensive action plan to boost India's trade with Africa which is "relatively" small at present, Union Minister Suresh Prabhu said. A series of engagements have been lined up in different parts of Africa to discuss ways to promote trade and investments between the two regions, he said. With India's exports growing at a relatively slower rate, Africa holds huge potential to boost exports. According to experts, India needs to take more steps to increase cooperation with the continent in various areas including services.

Maximilian Kunkel, investment strategist at UBS Global Wealth Management spoke to BloombergQuint and said emerging markets will continue to grow due to global expansion and benign liquidity and China would be the key market.

Trade war will lead to higher prices, preparing portfolios for that probability. 20-30% probability on an outright trade war in the next 12 months.

Stocks To Watch

PC Jeweller Ltd. is on the upside while Himadri Speciality Chemicals Ltd. is on the downside.

PC Jeweller is currently trading at Rs.242.15, up by Rs.67.50 or 38.65% from its previous closing of Rs.174.65 on the NSE. The scrip opened at Rs.192.10 & has touched a high & low of Rs.243.90 and Rs.192.10 respectively. So far 18,92,41,116 (NSE) shares were traded on the counter. The current market cap of the company is Rs.9,492.13 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.600.65 on 16-January-2018 & a 52 week low of Rs.94.55 on 03-May-2018.

HSCL is currently trading at Rs.122.50, down by Rs.12.80 or 9.46% from its previous closing of Rs.135.30 on the NSE. The scrip opened at Rs.136.00 & has touched a high and low of Rs.136.55 & Rs.118.90 respectively. So far 28,50,689 (NSE) shares were traded on the counter. The current market cap of the company is Rs.5,104.58 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.196.80 on 15-January-2018 and a 52 week low of Rs.57.10 on 23-May-2017.

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ABOUT AUTHOR

Niveza Editorial Desk : We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells everyday to a pave a smooth road for our clients in the shaky world of stock market. While tracking the mood swings of the market we bring our clients the most rewarding deals.

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