FMCG, Pharma & IT Push The Market To An All-Time High

IT, Pharma, Metal Stocks Push Markets to New Highs

Our Analysis

This week market crossed new highs as Nifty touched the 11,600 mark for the first time but profit booking was visible from the higher level. Stock specific buying continued in the market led by Reliance, UPL, IT, FMCG & Pharma stocks. Midcap to show strong buying. Global market also helped the Indian market to rise but trade war escalation continued to remain the concern. Indian Rupee continued to remain below 70 against the dollar. Crude oil price remained around $72 per barrel. Market expected to consolidate in near term due to lack of positive trigger & GDP data for India will be an event to watch along with Manufacturing Output.

This Weeks Market Highlights:

Benchmark Indices:

1. The benchmark indices started the week on a strong note as Sensex surged 331 points & Nifty above 11,550 as rupee recovered.

2. Nifty pharma, metal, banking & financials, auto & realty held market higher while IT index corrected led by Infosys. The Nifty midcap index closed 155 points higher.

3. On Tuesday, the market remained flat & closed flat as Sensex was up 7 points while Nifty well above 11,550.

4. On Thursday, equity indices ended the anticlimax day on a muted note as Sensex rose 51 points while Nifty near 11,600.

5. Nifty IT, pharma & FMCG gained big, weakness in banks, metals & auto offset the positive up move. The Nifty midcap index closed 35 points lower.

6. On Friday, the market opened on a sombre note but recovered later & traded higher.

Broader Index & Global Market:

- This week broader market remained muted despite started the week on a strong note as Midcap & Smallcap both remained flat. On sectoral indices, IT, FMCG & Pharma index remained strong this week while Nifty Banking & Financials, Auto, Realty, Metal and Media index either remained muted or lower.

- Global market also traded firmly higher as US market traded all-time high while the European market & other Asian markets also traded higher as US & China resumed talk on tariff war. Also, tweets from US President Trump can hurt market sentiment. Crude Oil remained lower & effect of Turkey crisis is also not showed any negative sentiment as investors factored out the issue.

Movers & Shakers

HDFC Asset Management Company share price rallied over 10% this week after reporting stellar earnings performance for the quarter ended June 2018. The country's second largest asset management company reported a 25% rise in net profit at Rs.205.2 crore for the three months to June as against Rs.164.6 crore last year, driven by a healthy 35 bps rise in operating margin. Its gross revenue rose 20% to Rs.501.1 crore, of which operational income grew 21% to Rs.471.2 crore for the quarter.

Shares of Mahanagar Gas Ltd. plunged over 10% after Foreign promoter BG Asia Pacific Holdings Pte Limited offloaded 14% equity stake in Mumbai-based city gas distribution company MGL. through open market transactions on Thursday. The stake sold was worth Rs.1,178.42 crore. After dilution, its stake in the company reduced to 10% which is locked in up to June 29, 2019, from 24% earlier.

Key Market Drivers

The Indian economy is expected to grow by around 7.5% in 2018 and 2019 as it is largely resilient to external pressures like those from higher oil prices, Moody's Investors Service said today. In its Global Macro Outlook for 2018-19, Moody's said the run-up in energy prices over the last few months will raise headline inflation temporarily but the growth story remains intact as it is supported by strong urban and rural demand and improved industrial activity. "We expect the Indian economy to grow around 7.5% in 2018 and 2019," it said. Today in the graphic accompanying the outlook, it put 2018 growth at 7.3% % 7.5% for 2019. But in the text, it put the growth "around 7.5%" for both the years.

U.S. central bankers are ready to raise interest rates again so long as the economy stays healthy, according to a record of the Federal Reserve's most recent policy meeting. Many participants suggested that if incoming data continued to support their current economic outlook, it would likely soon be appropriate to take another step in removing policy accommodation, minutes of the July 31-Aug. 1 Federal Open Market Committee meeting released Wednesday in Washington said.

Event Watch

Indias GDP data quarterly (YoY, Q1), Infrastructure Output for July (YoY) & Federal Fiscal Deficit for July data will be on 31st August 2018.

Q1 FY19 Result:- Jet Airways, RITES, PTC India Financial, Atlas Cycles.

Global:- MSCI changes effective close of 31st August 2018.

Stocks To Watch

Kajaria Ceramics Ltd. is on the upside while Hexaware Technologies Ltd. is on the downside.

Share Market News 23-August-2018


Market Extend Record Closing Spree Led By FMCG & IT Stocks

The Benchmark indices started again on a record high as Sensex rose 110 points & Nifty above 11,600. The equity market erased all gains as Sensex was down 10 points while Nifty above 11,550. On sectoral indices pharma, IT, FMCG & realty traded higher while banks, metal, auto & media index dragged market. Nifty midcap index underperformed benchmark indices, was down 84 points.

In the afternoon session, the market flat higher as Sensex was up 30 points & Nifty traded above 11,550. Weakness in banking & financials, metal, auto & media remained weak while pharma, IT, FMCG & realty continued to support the market. The Nifty midcap index continued to trade weak, was down nearly 100 points.

In the last hour of trade, the market traded higher as Sensex was up 80 points while Nifty near 11,600. The market ended the anti-climax day on a subdued note. While IT, pharma & FMCG gained big, weakness in banks, metals & auto offset the positive up move and pushed indices to flat lines. Nifty midcap index underperformed benchmark indices closed 35 points lower. Sensex closed 51.01 points up at 38,336.76, Nifty up by 11.85 points at 11,582.75.

Top Gainers

TechM by 2.75% to Rs.728.90, Dr. Reddy by 2.36% to Rs.2,467.90, NTPC by 2.27% to Rs.164.50, HCL Tech by 2.13%to Rs.1,026, LT by 2.07% to Rs.1,349.95.

Top Losers

Tata Motors by -4.56% to Rs.256.55, BPCL by -2.78% to Rs.358.50, IOC by -2.57% to Rs.153.65, HPCL by -2.53% to Rs.260.10, Hindalco by -2.32% to Rs.221.15.

Analysis Of Top Gainer And Loser

Tech Mahindra is the top gainer in today's market after foreign research house BoFAML has upgraded the stock to buy from underperform. The research house raised the target price to Rs.800 from Rs.600 per share.

Tata Motors is the top loser in today's market as some sort of a selling pressure was seen in the stock.

Key Market News

The Indian economy is expected to grow by around 7.5% in 2018 and 2019 as it is largely resilient to external pressures like those from higher oil prices, Moody's Investors Service said today. In its Global Macro Outlook for 2018-19, Moody's said the run-up in energy prices over the last few months will raise headline inflation temporarily but the growth story remains intact as it is supported by strong urban and rural demand and improved industrial activity. "We expect the Indian economy to grow around 7.5% in 2018 and 2019," it said. Today in the graphic accompanying the outlook, it put 2018 growth at 7.3% % 7.5% for 2019. But in the text, it put the growth "around 7.5%" for both the years.

U.S. central bankers are ready to raise interest rates again so long as the economy stays healthy, according to a record of the Federal Reserves most recent policy meeting. Many participants suggested that if incoming data continued to support their current economic outlook, it would likely soon be appropriate to take another step in removing policy accommodation, minutes of the July 31-Aug. 1 Federal Open Market Committee meeting released Wednesday in Washington said.

Stocks To Watch

Marksans Pharma Ltd. is on the upside while Mahanagar Gas Ltd. is on the downside.

Marksans Pharma is currently trading at Rs.36.35, up by Rs.3.60 or 10.99% from its previous closing of Rs.32.75 on the NSE. The scrip opened at Rs.32.70 & has touched a high & low of Rs.36.90 and Rs.32.70 respectively. So far 1,29,03,727 (NSE) shares were traded on the counter. The current market cap of the company is Rs.1,477.62 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.23.55 on 06-June-2018.

MGL is currently trading at Rs.840.25, down by Rs.61.95 or 6.87% from its previous closing of Rs.902.20 on the NSE. The scrip opened at Rs.863.40 & has touched a high and low of Rs.866.50 & Rs.832 respectively. So far 2,96,36,794 (NSE) shares were traded on the counter. The current market cap of the company is Rs.8,299.80 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-August-2018


Market Closes At A New Record High; Nifty Well Above 11,550

The Benchmark indices started off to a fresh high as Sensex rose 70 points & Nifty above 11,550. The equity market traded flat as Sensex was up 5 points while Nifty above 11,550. On sectoral indices, IT, media, auto & pharma traded higher while banking & financials, realty & FMCG traded lower. Nifty midcap index outperformed benchmark indices, was up 30 points.

In the afternoon session, the market continued to nudge high as Sensex was up 20 points & Nifty traded above 11,550. Nifty pharma, IT, media & auto continued to support market while banking & financials, realty & FMCG index capped gains. Broader market firmly traded higher led by midcap index, was up 37 points.

In the last hour of trade, the market remained higher as Sensex was up 40 points & Nifty above 11,550. The market remained flat throughout session & closed flat. Selling in banks after an initial rally dragged the indices lower from their high points. Along with it, weakness was visible in sectors such as metals & FMCG. Meanwhile, buying counters were buzzing in IT & pharma. Nifty midcap index outperformed benchmark indices closed 36 points higher. Sensex closed 7.00 points up at 38,285.75, Nifty up by 19.15 points at 11,570.90.

Top Gainers

UPL by 5.01% to Rs.649.90, TechM by 2.99% to Rs.708.50, Coal India by 2.52% to Rs.291.20, Lupin by 2.29%to Rs.889.15, Grasim by 2.27% to Rs.1,063.45.

Top Losers

Tata Steel by -2.57% to Rs.584.00, BPCL by -1.77% to Rs.369.30, VEDL by -1.35% to Rs.218.85, HUL by -1.33% to Rs.1,753.30, M&M by -1.09% to Rs.959.00.

Analysis Of Top Gainer And Loser

UPL is the top gainer in today's market as strong buying was seen in the stock. Most of the brokerage firms remain bullish on the stock.

Tata Steel is the top loser in today's market as some sort of a selling pressure was seen in the stock.

Key Market News

The dollar extended a decline against major peers on comments from U.S. President Trump, & Asian stocks traded mixed after muted gains in U.S. equities. The greenback accelerated a slide after the euro broke through the key $1.15 level amid thin summer liquidity. It had weakened earlier after a report from Reuters that Trump said China & Europe manipulate their currencies as well as separate remarks lamenting the Federal Reserves interest-rate increases.

US President Donald Trump doesnt expect much progress from trade talks with China this week in Washington, he told Reuters on Monday. Trump said in an interview that he had no time frame for ending the trade dispute with China, which threatens to impose tariffs on virtually all goods traded between the worlds two largest economies.

US President Donald Trump said on Monday he was not thrilled with the Federal Reserve under his own appointee, Chairman Jerome Powell, for raising interest rates & said the US central bank should do more to help him to boost the economy, Reuters reported

Stocks To Watch

Kajaria Ceramics Ltd. is on the upside while Housing Development & Infrastructure Ltd. is on the downside.

Kajaria Ceramics is currently trading at Rs.457.40, up by Rs.44.10 or 10.67% from its previous closing of Rs.413.30 on the NSE. The scrip opened at Rs.417.00 & has touched a high & low of Rs.461.00 and Rs.416.45 respectively. So far 53,75,604 (NSE) shares were traded on the counter. The current market cap of the company is Rs.7,274.36 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.767.70 on 21-September-2017 & a 52 week low of Rs.406.00 on 17-August-2018.

HDIL is currently trading at Rs.32.20, down by Rs.1.80 or 5.29% from its previous closing of Rs.34 on the NSE. The scrip opened at Rs.33.85 & has touched a high and low of Rs.33.95 & Rs.32.05 respectively. So far 1,71,20,155 (NSE) shares were traded on the counter. The current market cap of the company is Rs.1,406.17 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.69.15 on 15-January-2018 and a 52 week low of Rs.17.45 on 20-July-2018.

Share Market News 20-August-2018


Market Extend Record Highs Led By Capital Goods; Nifty Above 11,550

The Benchmark indices started at a fresh record high as Sensex rose 150 points & Nifty above 11,500. The equity market rallied further as Sensex was up nearly 300 points while Nifty near 11,550. Baring IT all sectoral indices traded higher led by pharma, banking & financials, metal, auto & realty. The Nifty midcap index also traded in line with benchmark indices, was up 117 points.

In the afternoon session, the market continued to trade strongly as Sensex surged 340 points while Nifty above 11,550. Nifty pharma, metal, banking & financials, auto & realty continued to rise while IT index capped gains. The broader market also traded firmly higher led by Nifty midcap index, was up 115 points.

In the last hour of trade, the market remained strong as Sensex was up over 350 points & Nifty above 11,550. The market closed on a strong note on the back of positive global cues & recovery in rupee. Nifty pharma, metal, banking & financials, auto & realty held market higher while IT index corrected led by Infosys. Nifty midcap index outperformed benchmark indices closed 155 points higher. Sensex closed 330.87 points up at 38,278.75, Nifty up by 81.00 points at 11,551.75.

Top Gainers

LT by 6.68% to Rs.1,323.05, Tata Motors by 4.76% to Rs.270.55, ONGC by 3.65% to Rs.169.00, Tata Steel by 3.46%to Rs.600.20, Hindalco by 3.14% to Rs.226.60.

Top Losers

Infosys by -2.95% to Rs.1,388.20, GAIL by -2.36% to Rs.378.55, Titan by -1.97% to Rs.923.00, HCL Tech by -1.40% to Rs.989.00, Lupin by -1.23% to Rs.870.45.

Analysis Of Top Gainer And Loser

Larsen & Toubro is the top gainer in today's market after it informed exchanges that its board will meet on Aug. 23 to discuss share buyback proposal. Buybacks have been a hit with Indian companies recently. HCL Technologies last month approved a share buyback plan worth Rs.4,000 crore.

Infosys is the top loser in today's market after its CFO Mavinakere Dwarakanath Ranganath resigned to pursue professional opportunities in new areas.

Key Market News

Indias current account deficit is expected to widen to 2.8% of the gross domestic product in this financial year, according to a Nomura report. With rising oil prices, depreciating rupee and outflow of portfolio investments, there are concerns that the current account deficit might rise in the current fiscal, it said. Current account deficit, the difference between the inflow and outflow of foreign exchange, jumped to $48.7 billion, or 1.9% of GDP, in 2017-18. That was higher than $14.4 billion, or 0.6%, CAD in 2016-17.

The U.S. economy will be hit many times harder than the rest of the world by an escalating global trade war, according to the chief executive officer of A.P. Moller-Maersk A/S. Soren Skou, who runs the worlds biggest shipping company from Copenhagen, said the fallout of the current protectionist wave could easily end up being bigger in the U.S. Tariffs could slow global annual trade growth by 0.1 to 0.3%, though for the U.S. the effect could be perhaps 3 or 4%, he said at Maersks headquarters on Friday. And that would definitely not be good.

Stocks To Watch

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

WelCorp is currently trading at Rs.141.30, up by Rs.15.00 or 11.88% from its previous closing of Rs.126.30 on the NSE. The scrip opened at Rs.127.00 & has touched a high & low of Rs.143.50 and Rs.126.20 respectively. So far 25,19,302 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,741.01 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.197.15 on 22-January-2018 & a 52 week low of Rs.102.75 on 20-July-2018.

Federal Bank is currently trading at Rs.81.55, down by Rs.4.70 or 5.45% from its previous closing of Rs.86.25 on the NSE. The scrip opened at Rs.86.30 & has touched a high and low of Rs.86.30 & Rs.80.70 respectively. So far 6,51,42,957 (NSE) shares were traded on the counter. The current market cap of the company is Rs.16,129.46 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.73.50 on 17-July-2018.

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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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