Global Cues Drive Market Correction, IT, Pharma Remains Favoured With Falling Rupee

IT, Pharma, Metal Stocks Push Markets to New Highs

Our Analysis

Sometimes a single situation can be bad for one side but can turn good for another side, the same phenomena can be applied for Indian rupee now, depreciation of rupee is a point of worry for Indian govt. & import-centric sectors however it's helpful for the exporters' likes of IT, pharma. The rally in IT and pharma helped market for snapping 6-day losing streak this week. The market witnessed some buying from week's low, despite rupee hitting 72 against the dollar as well as rising crude prices. F&O data shows that the market is expected to trade between 11,400 to 11,800 mark, but exporters will have benefit from rupee depreciation. Indias IIP, CPI & WPI data alongside rupee movement, crude oil price & global cues will be an event to watch.

This Weeks Market Highlights:

Benchmark Indices:

1. The benchmark indices on Monday opened higher but closed lower, Sensex dipped 333 points & Nifty ended below 11,600.
2. Nifty banking & financials, FMCG, IT, realty & auto index dragged market while metal & media closed in the green zone. The nifty midcap index closed 54 points lower.
3. On Tuesday market continued its downtrend on the back of weakening rupee with rising crude oil prices and closed lower, Sensex fall 155 points while Nifty closed below 11,550.
4. On Wednesday last hour buying helped equity indices to close off days low as Sensex fall 140 points while Nifty below 11,500.
5. On Thursday equity market snapped 6-days losing streak where Sensex surged 225 points while Nifty above 11,500 with the recovery of the rupee.
5. Among sectors, banks lost some sheen, but strength in pharma, energy & infra stocks helped the market. The nifty midcap index ended in green, 81.50 points higher.
6. On Friday market opened lower but erased losses with the help of auto, metal & some FMCG companies.

Sectoral Index:

- The broader market also witnessed the heat of market correction but managed to recover slightly in the last 3 trading session led by Nifty midcap & smallcap. The sectoral indices Nifty Pharma & IT index outperformed the market while all other indices tried to recover from weeks low. Also, rupee depreciation helped exporters to cheer.

- The broader market also witnessed the heat of market correction but managed to recover slightly in the last 3 trading session led by Nifty midcap & smallcap. The sectoral indices Nifty Pharma & IT index outperformed the market while all other indices tried to recover from weeks low. Also, rupee depreciation helped exporters to cheer.

Movers & Shakers

Shares of Drug maker Aurobindo Pharma surged over 20% this week after it entered into an agreement to acquire commercial operations & 3 manufacturing facilities in the U.S. from Sandoz Inc., a Novartis generic division, for $900 million. The acquired business witnessed sales of $1.2 billion in 2017 & $600 million in 2018. Aurobindo expects a revenue drop in the first 12 months to around $900 million.

Shares of second largest Tyre company by market cap Balkrishna Industries Ltd. fell over 10% after it announced a surprise capital expenditure plan of Rs 1,700 crore. The entire capex of Rs.1,700 crore would be funded via a mix of debt & internal accruals. Also global brokerage house HSBC downgraded rating and slashed the target price for the stock from Rs.1,410 to Rs.1,370.

Key Market Drivers

The Nikkei India services Purchasing Managers' Index, or PMI, fell to 51.9 in Aug. from July 21st -month high of 54.1, indicating a slower rise. The slowdown was driven by the weakest growth in new work in 3 month period, although business confidence rose to the highest level since May.

Softening of the domestic demand has slowed India's manufacturing sector's growth unexpectedly in the month of August, according to the private business survey on Monday. The activity gauge fell to a 3 month low of 51.7 from July's 52.3. Still, the expansion rate remained strong.

India's economy accelerated to a nine-quarter high at 8.2% in the first quarter of 2018-19, beating expectations on the back of a strong pick-up in manufacturing & a low base in the past previous year. This is likely to provide a much-needed breather to the government. Which is under pressure over the depreciating rupee & demonetization. India's GDP for the first quarter this year growing at 8.2% in otherwise an environment of global turmoil represents the potential of New India.

Event Watch

Indias IIP, CPI data will be presented on 12th Sept. & WPI data will be on 14th Sept. 2018.

Global:- BOE Interest Rate Decision & ECG Interest Decision will be on 13th Sept. 2018. U.S. Industrial Production, Manufacturing Production, Core CPI data will be presented in the upcoming week.

Stocks To Watch

Muthoot Finance Ltd. is on the upside while Religare Enterprises Ltd. is on the downside.

-2018.

Share Market News 06-September-2018


Sensex & Nifty ends the day on positive note post 3-day losing streak.

The Benchmark indices started on a good note, Sensex rose 100 points & Nifty hit 11,500. The equity market gained strength as Sensex traded 130 points higher while Nifty above 11,500. Nifty pharma, banking & financials, FMCG & realty supported higher while media & IT traded lower. The nifty midcap index continued to outperform benchmark indices, traded 84 points higher.

In the afternoon session, the market turned red as Sensex fell 25 points & Nifty slipped near 11,450. Intense selling has been witnessed in the media, private bank, FMCG & auto indices. The phenomena have pushed the market lower to the lower levels however pharma index managed to survive in the session and remained in the green zone. The broader market also slipped in red led by Nifty midcap index, down 25 points.

In last hour of trade market regained strength where Sensex surged 250 points & Nifty recovered to the near 11,550 mark. A recovery in rupee from low helped market to end on a positive note. Among sectors, banks lost some sheen in the last half hour, but strength in pharma, energy & infra stocks helped the bulls to hold their grip on the market. The nifty midcap index also ended in green, 81.50 points higher. Sensex closed 224.50 points up at 38,242.81 whereas Nifty up by 59.95 points at 11,536.90.

Top Gainers

RIL by 2.77% to Rs.1,261, Cipla by 2.31% to Rs.661.50, Coal India by 2.07% to Rs.283.35, NTPC by 2.02%to Rs.168.95, Sun Pharma by 1.92% to Rs.676.50.

Top Losers

ZEEL by -2.44% to Rs.470.70, Hindalco by -1.73% to Rs.235.80, Bajaj Finance by -1.65% to Rs.2,672.20, Maruti Suzuki by -1.59% to Rs.8,754.50, IBULHSGFIN by -1.42% to Rs.1,202.20.

Analysis Of Top Gainer And Loser

Reliance Industries remained the top gainer in today's market as CLSA, one of the major broking firms, has maintained buy call with the target of Rs.1,500.

ZEEL remained the top loser in today's market owing to downgrading from the international brokerage firm, Morgan Stanley to 'Underweight' & reduction in the target from Rs.610 to Rs.410.

Key Market News

India probably overestimated manufacturing output while calculating economic growth that topped 8% in the June quarter, according to a member of the central banks rate-setting panel. The new GDP series has mostly replaced the Annual Survey of Industries with corporate financial data for estimating manufacturing value added, according to an article Ravindra Dholakia, a member of the MPC, co-authored with R. Nagaraj & Manish Pandya in the latest edition of the Economic & Political Weekly. This has resulted in its higher share in GDP & a faster growth rate compared to the older series, they said.

The British & German governments. have abandoned key Brexit demands, potentially easing the path for the U.K. to strike a deal with the EU, people familiar with the matter said. The pound rose. Germany is ready to accept a less detailed agreement on the U.K.s future economic & trade ties with the EU in a bid to get a divorce deal done, according to people speaking on condition of anonymity because the discussions are private. The U.K. side is also willing to settle for a vaguer statement of intent on the future relationship, postponing some decisions after Brexit day, according to an official who declined to be named.

Stocks To Watch

Aurobindo Pharma Ltd. is on the upside while National Aluminium Company Ltd. is on the downside.

AuroPharma is currently trading at Rs.761.95, up by Rs.65.00 or 9.33% from its previous closing of Rs.696.95 on the NSE. The scrip opened at Rs.699.00 & has touched a high & low of Rs.764.40 and Rs.698.00 respectively. So far 1,62,22,470 (NSE) shares were traded on the counter. The current market cap of the company is Rs.44,502.61 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.809.45 on 07-November-2017 & a 52 week low of Rs.527.00 on 04-June-2018.

Nalco is currently trading at Rs.71.20, down by Rs.5.15 or 6.75% from its previous closing of Rs.76.35 on the NSE. The scrip opened at Rs.77.45 & has touched a high and low of Rs.77.45 & Rs.69.65 respectively. So far 3,55,83,057 (NSE) shares were traded on the counter. The current market cap of the company is Rs.13,781.78 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.97.60 on 01-November-2017 and a 52 week low of Rs.56.55 on 16-July-2018.

Share Market News 05-September-2018


Sensex Extends Its Southward Journey, Posts Longest Losing Streak In 6-Months

The Benchmark indices opened flat, Sensex fell 20 points & Nifty above 11,500. The equity market traded lower, Sensex was down 50 points while Nifty below 11,500. Nifty pharma & IT index traded in green zone while realty, banking & financials, metal, media & FMCG dragged market. The nifty midcap index continued to underperform benchmark indices, was down by 0.60%.

In the afternoon session, the market continued its slide further, Sensex was down 300 points & Nifty slipped near 11,400 mark. Intense selling was witnessed among midcaps, along with other sectors such as banks, auto, energy, FMCG & metal. Pharma sector, too tasted red zone, falling over a quarter of a percent.

In the last hour of trade market were off days low as Sensex was down 215 points while Nifty back above 11,450. A good recovery helped the market to close with shallow cuts. Nifty metal, pharma & auto index closed higher while other sectoral indices closed in red led by realty, media, IT, FMCG, banking & financials. The nifty midcap index closed lower, though recovered from days low, fall 81 points. Sensex closed 139.61 points down at 38,018.31, Nifty up by 43.35 points at 11,476.95.

Top Gainers

Yes Bank by 2.99% to Rs.344.05, Tata Motors by 2.60% to Rs.268.75, Wipro by 2.06% to Rs.319.80, Hindalco by 2.00%to Rs.239.80, VEDL by 1.76% to Rs.228.75.

Top Losers

Infratel by -4.28% to Rs.271.90, ZEEL by -3.07% to Rs.478.00, HUL by -2.72% to Rs.1,606.25, Titan by -1.77% to Rs.865.35, Kotak Bank by -1.64% to Rs.1,237.

Analysis Of Top Gainer And Loser

Yes Bank is the top gainer in today's market on the back of good buying in the stock after correction from high.

Owing to the strong selling pressure, Bharti Infratel remained the top loser in today's market.

Key Market News

The Nikkei India services Purchasing Managers' Index, or PMI, fell to 51.9 in August from July 21st -month high of 54.1, indicating a slower rise. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction. The slowdown was driven by the weakest growth in new work in 3 months, although business confidence rose to the highest level since May.

A gauge of U.S. manufacturing unexpectedly jumped to the highest since May 2004 as orders, production and employment all picked up, even as companies contend with potential complications from trade tariffs, according to a report Tuesday.

After witnessing a positive opening, the rupee has resumed its downward movement and hit a fresh record low of 71.97. The currency had opened higher by 18 paise at Rs.71.40 per dollar against its previous close Rs.71.58. It plunged 37 paise to end at a record low of Rs.71.58 on Tuesday. The rupee continues to make a new record low on account of the crisis in the emerging market currencies. Further, consistent rise in the crude oil prices & dollar index has kept sentiments bearish.

Stocks To Watch

Muthoot Finance Ltd. is on the upside while Bharat Electronics Ltd. is on the downside.

Muthoot Finance is currently trading at Rs.441.85, up by Rs.42.00 or 10.50% from its previous closing of Rs.399.85 on the NSE. The scrip opened at Rs.405.00 & has touched a high & low of Rs.442.40 and Rs.401.25 respectively. So far 1,04,90,348 (NSE) shares were traded on the counter. The current market cap of the company is Rs.17,488.00 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.525.50 on 13-September-2017 & a 52 week low of Rs.363.50 on 06-February-2018.

BEL is currently trading at Rs.94.00, down by Rs.15.15 or 13.88% from its previous closing of Rs.109.15 on the NSE. The scrip opened at Rs.109.40 & has touched a high and low of Rs.109.40 & Rs.89.50 respectively. So far 14,52,75,148 (NSE) shares were traded on the counter. The current market cap of the company is Rs.23,025.80 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.193.40 on 29-November-2017 and a 52 week low of Rs.89.50 on 05-September-2018.

Share Market News 04-September-2018

Sensex extends losses for the 5th Consecutive day amid strong selling pressure

The Benchmark indices opened flat, Sensex rose 30 points & Nifty above 11,550. The equity market continued to trade flat as Sensex was up 15 points while Nifty above 11,550. Except for IT index which surged 2%, all other sectoral indices traded in red led by banking & financials, FMCG, metal, media, pharma. Nifty midcap index underperformed benchmark indices, was down 1.27%.

In the afternoon session market continued to trade lower as Sensex fell 85 points while Nifty slipped below 11,550. Nifty IT continued to trade higher while all other indices continued their downtrend led by FMCG, metal, banks, financials, auto, pharma, realty & media stocks. The nifty midcap index continued to underperform the benchmark indices and dipped almost by 2%.

In last hour of trade, amid strong selling pressure, Sensex fell 160 points while Nifty managed to hold 11,500 mark. Weakening rupee coupled with rising crude oil prices dragged markets to the lower levels. Nifty midcap index underperformed the market, dipped 540 points or 2.72%. Sensex closed 154.60 points down at 38,157.92 whereas Nifty up by 62.05 points at 11,520.30.

Top Gainers

Tech Mahindra up by 2.73% to Rs.766.00, HCL Tech by 2.56% to Rs.1,076, TCS by 2.29% to Rs.2,100, INFY by 2.21%to Rs.733.00, Wipro by 2.08% to Rs.314.75.

Top Losers

Grasim by -4.09% to Rs.1,022.40, IBULHSGFIN by -3.97% to Rs.1,210, Ultratech Cement by -3.72% to Rs.4,211, Asian Paints by -3.57% to Rs.1,313, Titan by -3.54% to Rs.880.40.

Analysis Of Top Gainer And Loser

Tech Mahindra remained as the top gainer in today's market, the key reason behind this is continued depreciation of rupee against dollar. Weakening rupee aids IT companies profitability.

Grasim remained the top loser in today's market, The primary reason behind this is the strong selling pressure which was seen in the stock due to Supreme Courts decision of imposing a ban on the new constructions in 3 states with respect to the issues in the solid waste management.

Key Market News

The Reserve Bank of India today asked all scheduled commercial banks having more than 10 branches to appoint an internal ombudsman. The apex bank has excluded regional rural banks from its directive. The internal ombudsman scheme was introduced by RBI to strengthen the internal grievance of banks and to ensure the redressal of the customer complaints. In order to enhance the independence of the internal ombudsman and strengthen the monitoring system. The central bank also mentioned that it has reviewed the arrangement in the form of the Internal Ombudsman Scheme, 2018.

Fitch Ratings on Monday said the currency volatility will have only a "limited impact" on India's sovereign credit profile as the country benefits from strong external finances. In a report on APAC sovereigns, Fitch said the recent sell-offs in Indian & Indonesian currency markets underline their sensitivity to shifts in global sentiment & suggest further bouts of pressure. Fitch said the risk of currency pressures triggering a policy-induced spike in domestic borrowing costs is mitigated by the Reserve Bank of India's relatively narrow focus on its inflation objective.

Stocks To Watch

Hathway Cable & Datacom Ltd. is on the upside while NCC Ltd. is on the downside.

Hathway Cable is currently trading at Rs.20.40, up by Rs.2.05 or 11.17% from its previous close of Rs.18.35 on the NSE. The scrip opened at Rs.18.35 & has touched a high & low of Rs.22.00 and Rs.18.10 respectively. So far 95,28,086 (NSE) shares were traded on the counter. The current market cap of the company is Rs.1,681.75 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.48.70 on 15-January-2018 & a 52 week low of Rs.15.10 on 17-July-2018.

NCC is currently trading at Rs.95.20, down by Rs.8.45 or 8.15% from its previous close of Rs.103.65 on the NSE. The scrip opened at Rs.104.05 & has touched a high and low of Rs.105.30 & Rs.94.05 respectively. So far 1,97,30,057 (NSE) shares were traded on the counter. The current market cap of the company is Rs.5,736.17 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.141.40 on 10-January-2018 and a 52 week low of Rs.77.55 on 23-July-2018.

Share Market News 03-September-2018


Sensex Registers Its Longest Losing Streak In 3-Months

The Benchmark indices opened at higher levels, Sensex rose 150 points & Nifty above 11,700 on strong GDP data. The equity market marginally off days high as Sensex was up 90 points while Nifty holds 11,700. Nifty IT, pharma, PSU bank, metal & auto index surged while Private banks, financials & FMCG remained lower. The nifty midcap index traded 140 points higher outperforming benchmark indices.

In the afternoon session market witnessed selling pressure as Sensex was up just 40 points while Nifty gave up 11,700 mark. Nifty IT, metal, pharma & PSU bank index surged while FMCG, private bank & financials capped the gains. The nifty midcap index continued to outperform frontline indices, by trading 160 points higher.

In the last hour of trade, owing to the selling pressure market dragged to the lower levels, Sensex fell 200 points while Nifty below 11,650. It was an anti-climax day for the market which closed lower. Among sectors, Selling pressure in banking & financials, FMCG, IT, realty & auto index dragged market while metal & media closed at higher levels. The nifty midcap index also closed lower by 54 points however managed to outperform benchmark indices. Sensex closed 332.55 points down at 38,312.52, Nifty up by 98.15 points at 11,582.35.

Top Gainers

Dr. Reddy up by 3.85% to Rs.2,588, Wipro by 2.62% to Rs.309.15, Eicher Motors by 2.34% to Rs.28,715, Titan by 2.20%to Rs.911.50, HPCL by 1.26% to Rs.257.00.

Top Losers

Bajaj Finance down by -4.78% to Rs.2,720.10, HUL by -4.51% to Rs.1,699.80, PowerGrid by -3.62% to Rs.194.20, Axis Bank by -2.86% to Rs.630.70, ITC by -2.61% to Rs.311.50.

Analysis Of Top Gainer And Loser

Dr. Reddy is the top gainer with the strong buying on account of the depreciating rupee.

Bajaj Finance is the top loser in due to strong selling pressure after hitting 52-week high from near Rs.3000.

Key Market News

Softening of the domestic demand has slowed India's manufacturing sector's growth unexpectedly in the month of August, as per private business survey on Monday. The activity gauge fell to a 3 month low of 51.7 from July's 52.3. Analysts polled by Reuters had expected pick up in growth by forecasting a reading of 52.8. Still, the expansion rate remained strong. The PMI has not been below the 50-mark which separates growth from contraction since July 2017, when manufacturing took a hit from the implementation of a goods and services tax (GST).

Indias economy accelerated to a nine-quarter high at 8.2% in the first quarter of 2018-19, beating expectations on the back of a strong pickup in manufacturing and a low base in the past previous year. This is likely to provide a much-needed breather to the government that is under fire over the depreciating rupee & demonetization. Indias GDP for the first quarter this year growing at 8.2% in otherwise an environment of global turmoil represents the potential of New India. Reforms and fiscal prudence are serving us well. India is witnessing an expansion of the neo middle class, tweeted finance minister Arun Jaitley.

Stocks To Watch

Network18 Media & Investments Ltd. is on the upside while Balkrishna Industries Ltd. is on the downside.

Network18 is currently trading at Rs.53.80, up by Rs.6.25 or 13.14% from its previous close of Rs.47.55 on the NSE. The scrip opened at Rs.47.95 & has touched a high & low of Rs.54.80 and Rs.47.60 respectively. So far 93,34,544 (NSE) shares were traded on the counter. The current market cap of the company stands at Rs.5,637.82 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.64.10 on 15-January-2018 & a 52 week low of Rs.39.25 on 27-June-2018.

Balkrishna Industries is currently trading at Rs.1,262.05, down by Rs.92.05 or 7.21% from its previous closing of Rs.1,360.10 on the NSE. The scrip opened at Rs.1,355.00 & has touched a high and low of Rs.1,355.00 & Rs.1,254.50 respectively. So far 27,15,518 (NSE) shares were traded on the counter. The current market cap of the company is Rs.24,424.66 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.1,453.55 on 29-August-2018 and a 52 week low of Rs.777.00 on 31-August-2017.

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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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