Good Earnings Fuel Stock Specific Rallies; Nifty At 10,600

IT, Pharma, Metal Stocks Push Markets to New Highs

Our Analysis

This week, some of the big companies like Hero Motocorp, Kotak Bank, DHFL, MRF reported strong numbers. However, the management commentary of HCL Tech upset the market sentiment. The market this week reacted strongly to the global cues mainly on Fed Meet Outcome & US-China trade talks. Also, domestic data continued to be on the positive side as manufacturing index was high while GST collection crossed Rs.1 trillion. Metal, Pharma, PSU Bank & Realty stocks remained under selling pressure. Sectors like midcap IT, Realty, Infra, Fertilisers gave plenty of opportunities to gain in the volatile market.

This Weeks Market Highlights:

Benchmark Indices:

1. The benchmark indices opened on a higher note.

2. Sensex surged nearly 200 points while Nifty closed above 10,700 after the Reserve Bank of India liberalised ECB policy.

3. All sectoral indices closed in green led by PSU Bank, Realty, IT & FMCG. All the indices were up over 1%. Nifty midcap was up .0.80%.

4. On Wednesday, the market closed flat after a rangebound session, Nifty remained above 10,700, ahead of Fed Meet outcome.

5. On Thursday, equity indices remained volatile as Sensex fell 73 points while Nifty closed below 10,700, amid weak global cues.

6. On Friday, the market traded lower due to weakness in the global peers amid US-China trade talks.

Sectoral Index:

- This week broader market underperformed fronliners as from Monday, selling pressure was seen in the midcap & smallcap stocks. On the sectoral index Metal, IT, Pharma & banking stocks remained under selling pressure.

- This week global market remained under selling pressure after a choppy session due to disappointing earnings reported by several companies offset strong economic data. Also, ahead of US Payrolls data, Asian markets also remained mix.

Movers & Shakers

Today, Equitas Holdings Ltd reported an over five-fold jump in its consolidated net profit at Rs.34.89 crore for Q4 2018 against 6.91 crores in last fiscal year. "As a strategy, we have looked to reduce micro-loan portfolio and we have grown our secured loan portfolio to 72%, said P N Vasudevan managing director Equitas Holdings. The share price of the company surged nearly 20% this week.

Shares of HCL Technologies have dipped around 15% this week after the company reported PAT for Q4FY18 was marginally below expectation. Revenue in Rupee terms grew by 2.9% QoQ to Rs.13,179 crore. PAT grew by 1.5% QoQ to Rs.2,227 crore against consensus estimate of Rs.2,252 crore. The managements subdued commentary, especially for organic revenue growth, for FY19 indicates that pressure on its legacy business is yet to be countered by traction in digital and intellectual property (IP) led businesses.

Key Market Drivers

Goods and services tax (GST) collections touched a record Rs.1.03 trillion in April. It is the first time the number has crossed the 1 trillion-mark in any month since the new tax regime debuted on 1 July. Of the total revenue of Rs.1.03 trillion collected in April, Rs.18,652 crore was central GST, Rs.25,704 crore was stated GST and Rs.50,548 crore was integrated GST, the finance ministry statement said. The cess was Rs.8,554 crore.

Federal Reserve officials left the interest rates unchanged, acknowledging inflation is close to target without indicating any intention to veer from their gradual path of interest-rate increases. "Inflation on a 12-month basis is expected to run near the committees symmetric 2 percent objective over the medium term, the policy setting FOMC said in a statement Wednesday in Washington.

Event Watch

Indias Cumulative Industrial Production (March), Industrial Production (YoY, March) & Manufacturing Output (MoM, March) will release on 11th May 2018.

Q4FY18 Earnings - Titan, Asian Paints, ZEEL, Avenue Supermarts, Tata Chemicals, Exide Industries, Godrej Consumer, Eicher Motors, JSPL, Federal Bank, Canara Bank.

On The Global Front - US core CPI for April (MoM & YoY) will be released on 10th May 2018.

Stocks To Watch

L&T Finance is on the upside while JSW Energy is on the downside.

Share Market News: 03 May 2018

Sensex Halts 4-Day Winning Streak; Nifty Below 10,700

The Benchmark indices opened flat as Sensex was down 10 points & Nifty above 10,700, amid weak global cues. The equity market continued to remain under selling pressure as Sensex was down over 100 points while Nifty traded well below 10,700. It was weighed down by FMCG, IT stocks, Reliance Industries & HDFC Bank while HDFC and ICICI Bank continued to support the market. Broader markets extended losses, as the Nifty Midcap index fell 1.5%.

In the afternoon session, equity benchmark turned volatile from days low as Sensex was down 10 points while Nifty hovered around 10,700, ahead of US-China trade meet. IT, FMCG, select banks stocks, Reliance Industries and L&T continue to trade lower whereas ICICI Bank and HDFC capped market losses. Nifty midcap fell over a percent.

In the last hour of trade, the market continued to consolidate as Sensex was down by 50 points while Nifty hovered around 10,700 levels. The market closed lower due to global weakness amid US-China trade talks. Nifty IT, FMCG, Realty & Auto index fell the most while Metal and some private banks supported the market. Nifty midcap index fell over 1%. Sensex closed 73.28 points down at 35,103.14, Nifty down by 38.40 points at 10,679.65.

Top Gainers

Sun Pharma by 3.60% to Rs.1,260, Infratel by 3.35% to Rs.324.30, Tata Steel by 2.12% to Rs.586.70, NTPC by 1.82% to Rs.173.50, Axis Bank by 1.79% to Rs.533.10.

Top Losers

HCL Tech by -7.95% to Rs.923.00, UPL by -3.60% to Rs.707.00, Eicher Motors by -2.36% to Rs.29,800.55, KotakBank by -1.99% to Rs.1,231.85, IBULHSGFIN by -1.95% to Rs.1,272.80.

Analysis Of Top Gainer And Loser

Sun Pharma is the top gainer in today's market as the company has received USFDA approval for its version of Esomeprazole Magnesium.

HCL Tech is the top loser in today's market after the company posted a 9.8% drop in consolidated net profit for the March 2018 quarter. On Wednesday.

Key Market News

Federal Reserve officials left interest rates unchanged, acknowledging inflation is close to target without indicating any intention to veer from their gradual path of interest-rate increases. The decision to maintain the federal fund's target range at 1.5% to 1.75% was a unanimous 8-0. This FOMC meeting wont be followed by a press conference. Inflation on a 12-month basis is expected to run near the committees symmetric 2 percent objective over the medium term, the policy-setting FOMC said in a statement Wednesday in Washington.

Near-month (May 31) options activity on Nifty indicates the index could hit a fresh high if NDA wins a clear majority (113 plus of 224 seats) in the upcoming Karnataka election. That would mean Nifty surpassing its January 29 record of 11,171.55 on or after May 15 when the results are out, believes derivative experts Rajesh Palviya of Axis Securities and Ashish Chaturmohta of Sanctum Wealth Management.

Stocks To Watch

PC Jeweller Ltd.is on the upside while is HCL Technologies Ltd. on the downside.

PC Jeweller is currently trading at Rs.122.90, up by Rs.12.25 or 11.07% from its previous closing of Rs.110.65 on the NSE. The scrip opened at Rs.100.65 & has touched a high & low of Rs.126.80 and Rs.94.55 respectively. So far 21,79,43,465 (NSE) shares were traded on the counter. The current market cap of the company is Rs.4,789.44 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.

HCL Tech is currently trading at Rs.921.00, down by Rs.79.50 or 7.95% from its previous closing of Rs.1,000.50 on the NSE. The scrip opened at Rs.997.00 & has touched a high and low of Rs.997.00 & Rs.920.00 respectively. So far 76,38,012 (NSE) shares were traded on the counter. The current market cap of the company is Rs.1,28,942.31 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.1,108 on 23-April-2018 and a 52 week low of Rs.808.15 on 04-May-2017.

Share Market News 02-May-2018

Nifty Halts 3-Day Uptrend Ahead Of Fed Meet Outcome

The Benchmark indices opened higher as Sensex was up over 100 points & Nifty above 10,750 backed by Auto sales data & strong GST collection data. The equity market continued to consolidate as Sensex was up only 10 points while Nifty traded below 10,750, ahead of Federal Reserve meeting outcome that is due tonight. Nifty IT, Metal & PSU bank indices were down 1.5-2% while auto & some selected private banks supported the market. Nifty midcap also fell over half a percent.

In the afternoon session, equity benchmark gained strength as Sensex rose over 150 points while Nifty was back above 10,750. HDFC twins, Reliance Industries, ITC and Kotak Mahindra Bank led the rally, but the correction in metals, technology and ICICI Bank capped gains. Nifty midcap traded mildly higher.

In the last hour of trade, the market continued to consolidate as Sensex fell over 50 points while Nifty below 10,750. The market closed flat after rangebound session as investors await Federal Reserve outcome due tonight. Nifty Metal, PSU bank, Realty, IT, Pharma & Auto fell over 1-3% while NBFCs & private banks supported the market. Nifty midcap index was down 302 points. Sensex closed 16.06 points up at 35,176.42, Nifty down by 21.30 points at 10,718.05.

Top Gainers

KotakBank by 4.04% to Rs.1,260, ZEEL by 2.03% to Rs.600.00, ITC by 1.83% to Rs.286.60, Axis Bank by 1.46% to Rs.524.85, Asian Paint by 1.40% to Rs.1,218.55.

Top Losers

VEDL by -4.98% to Rs.283.55, HCL Tech by -4.50% to Rs.1,005.35, Hindalco by -3.54% to Rs.227.30, Tata Steel by -3.39% to Rs.574.80, HINDUNILVR by -2.51% to Rs.1,471.

Analysis Of Top Gainer And Loser

Kotak Bank is the top gainer in today's market as investors cheered quarter performance. The lender reported a 15% YoY rise in its standalone net profit for the March quarter at Rs.1,124 crore.

VEDL is the top loser in today's market after The National Company Law Appellate Tribunal agreed to hear Renaissance Steels appeal against Vedantas revival plan for indebted Electrosteel on May 17.

Key Share Market News

Indian factory growth accelerated in April on strong domestic demand and output, a business survey showed, while price pressures were subdued which is a comforting sign for the central bank as it seeks to temper inflation without hurting the economy. The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, rose to 51.6 last month from March's 51, as predicted by a Reuters and above the 50-point mark that separates growth from contraction for a ninth straight month.

Goods and services tax (GST) collections touched a record Rs.1.03 trillion in April. It is the first time the number has crossed the 1 trillion-mark in any month since the new tax regime debuted on 1 July. Of the total revenue of Rs.1.03 trillion collected in April, Rs.18,652 crore was central GST, Rs.25,704 crore was stated GST and Rs.50,548 crore was integrated GST (including Rs.21,246 crore collected on imports), the finance ministry statement said. The cess was Rs.8,554 crore.

Stocks To Watch

Equitas Holdings Ltd.is on the upside while is Jet Airways (India) Ltd. on the downside.

Equitas is currently trading at Rs.166.05, up by Rs.11.45 or 7.41% from its previous closing of Rs.154.60 on the NSE. The scrip opened at Rs.155.40 & has touched a high & low of Rs.166.50 and Rs.155.00 respectively. So far 92,64,753 (NSE) shares were traded on the counter. The current market cap of the company is Rs.5,601.78 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.183.60 on 07-September-2017 & a 52 week low of Rs.129.30 on 06-February-2018.

Jet Airways is currently trading at Rs.591.20, down by Rs.52.05 or 8.09% from its previous closing of Rs.643.25 on the NSE. The scrip opened at Rs.640.00 & has touched a high and low of Rs.646.50 & Rs.583.00 respectively. So far 44,25,278 (NSE) shares were traded on the counter. The current market cap of the company is Rs.6,735.19 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.883.45 on 05-January-2018 and a 52 week low of Rs.438.25 on 31-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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