Market At A New High As Reliance & Banks Lead The Bull Run

Share Market Weekly

Our Analysis

Benchmark Indices continued to touch new all-time high levels led by PSU & some private banks along with Reliance. Stock specific buying continued in the market in heavyweights, midcap & small-cap companies. As Q1 earnings are coming to an end, the market is expected to consolidate in coming times with positive prospect. Q1 earnings from companies will continue next week as well. Companies with good future prospect & strong fundamentals will be in focus. Movement of Rupee, crude oil price along with CPI & WPI Inflation data will be some the key events to watch out for.

This Weeks Market Highlights:

Benchmark Indices:

1. The benchmark indices started the week on a fresh the as Sensex closed 136 points up & Nifty near 11,400.

2. Banks led the gainers' chart among all sectoral indices, while auto, energy & metals followed suit. In the broader markets, midcaps rose 87 points.

3. On Tuesday, the market closed flat after the rangebound session as Sensex closed 26 points lower while Nifty closed 2 points higher.

4. On Wednesday, equity indices again closed at a fresh record high as Sensex surged 222 points while Nifty ended at the 11,450 mark.

5. Nifty banking & financials, FMCG & metal pushed the market higher while pharma, auto index capped the gains in the market. The Nifty midcap index ended flat.

6. On Thursday, the market closed higher as Sensex ended above the 38K level for the first time at 38,024 while Nifty settled at 11,471.

7. On Friday, the market started lower as Sensex breached 38K & Nifty test 11,450.

Broader Index & Global Market:

- This week broader market cooled off as Nifty midcap & smallcap remain muted compared to indices but stock-specific buying continued. Nifty bank pushed the market higher this week along with metal & financials while all other sectoral indices remained under pressure led by pharma, IT, realty, auto, FMCG & media.

- The global market remained mix this week due to increasing tariff trade was where the US said that it will increase tariff on Chinese goods. Also, the threat by the US to not do any business from Iran especially crude oil import hurting sentiment of global investors. The dollar continued to remain strong. So geopolitical tensions, crude oil movement & US retail sales along with Manufacturing & Industrial data will be the events to track this week.

Movers & Shakers

Shares of Merck Ltd. surged over 20% this week as company posted 140% jump in its June quarter, Q1FY19 net profit at Rs.48.3 crore as against Rs.20.1 crore in year ago, on the back of robust operating income. The stock hit all-time high of Rs.3,073. Revenue rose 33.3% at Rs.220.3 crore against Rs.165.3 crore. The operating profit or EBITDA was up 236% at Rs.50.8 crore and the margin was up at 23.1%.

Shares of BEML Ltd. fell over 10% this week as the company on Wednesday reported a loss of Rs.160.34 crore for June quarter against Rs.85.13 crore, the loss in the corresponding quarter last fiscal. Revenue from operations for quarter plunged 28% to Rs.454.68 crore against Rs.631.66 crore in the last-year period. Total income of the PSU came in at Rs.459.33 crore, down 27.8% against Rs.636.79 crore in the year-ago period.

Key Market Drivers

India is on track to hold its position as one of the worlds fastest-growing economies as reforms start to pay off, according to the International Monetary Fund. The $2.6 trillion economy was described by Ranil Salgado, the IMF's mission chief for India, as an elephant starting to run with growth forecast at 7.3% in the fiscal year through March 2019 & 7.5% in the year after that. The nation accounts for about 15% of global growth, according to the Washington-based fund. Key risks flagged by the IMF in its annual Article IV assessment of the economy include higher oil prices, tightening global financial conditions & tax revenue shortfalls.

The government will hold talks with the Reserve Bank of India about relaxing capital requirements for banks and bringing them in line with the less-stringent Basel-III norms, according to a report by The Economic Times. This comes after discussions by the finance ministry with central think tank NITI Aayog and other stakeholders, a senior government official told the paper. The move is likely to free up an estimated Rs.60,000 crore of capital for state-owned lenders.

Event Watch

Indias Manufacturing Output for June (MoM) & CPI for July (YoY) data will be on August 13th, 2018. WPI Inflation for July (YoY) will be on Aug. 14th, 2018.

Q1 FY19 Result:- Cadila, DHFL, Godrej Industries, Grasim, Sun Pharma, CARE, Greaves Cotton, Ashoka Buildcon, Dilip Buildcon.

Global:- US Retail sales for July (MoM), Industrial Production, Manufacturing Production data will be on Aug. 15th, 2018 US Building permits data will be on Aug. 16th 2018. EU German GDP data will be on August 14th 2018.

Stocks To Watch

AU Small Finance Bank Ltd. is on the upside while Jet Airways is on the downside.

Share Market News 08-August-2018


Reliance Pushed The Market At Closing Highs, Nifty At 11,450

The Benchmark indices started the day on a positive note as Sensex was up 20 points & Nifty near 11,400. The equity market hit fresh record as Sensex rose over 150 points while Nifty traded near 11,450. Baring pharma & IT all sectoral indices traded in green led by banking & financials, media, metal, retail & FMCG. The Nifty midcap index traded in green, was up 50 points.

In the afternoon session, the market continued to hit fresh high as Sensex surged over 200 points while Nifty hit the 11,450 mark. Nifty banking & financials, media & FMCG pushed the market higher while pharma & IT capped gains. Nifty midcap index underperformed the market, traded 60 points higher.

In the last hour of trade, the markets were off days high as Sensex was up 150 points while Nifty above 11,400. The market closed at record fresh high. Nifty banking & financials, FMCG & metal pushed market while pharma, auto index capped the gains in the market. Nifty midcap index underperformed the market, ended flat. Sensex closed 221.76 points up at 37,887.56, Nifty up by 60.55 points at 11,450.00.

Top Gainers

ONGC by 3.13% to Rs.172.80, RIL by 3.09% to Rs.1,220.80, Cipla by 2.33% to Rs.644.10, Infratel by 2.31%to Rs.292.50, Bajaj Finance by 2.28% to Rs.2,809.95.

Top Losers

Lupin by -5.13% to Rs.822.15, Maruti by -2.14% to Rs.9,210, HindPetro by -1.63% to Rs.283.90, BPCL by -1.31% to Rs.388.95, Grasim by -0.87% to Rs.1,009.95.

Analysis Of Top Gainer And Loser

ONGC is the top gainer in today's market after the company is expected to beg 2 oil blocks as ECS has cleared award are blocks offered in OALP-1.

Lupin is the top loser in today's market after it reported a 43% YoY decline in net profit to Rs.202.8 crore in the June quarter as against a net profit Rs.358.1 crore last fiscal. PAT was much below analysts estimates on a subdued US business.

Key Market News

India is on track to hold its position as one of the worlds fastest-growing economies as reforms start to pay off, according to the International Monetary Fund. The $2.6 trillion economy was described by Ranil Salgado, the IMFs mission chief for India, as an elephant starting to run with growth forecast at 7.3% in the fiscal year through March 2019 & 7.5% in the year after that. The nation accounts for about 15% of global growth, according to the Washington-based fund. Key risks flagged by the IMF in its annual Article IV assessment of the economy include higher oil prices, tightening global financial conditions & tax revenue shortfalls.

The U.S. said it will begin imposing 25% duties on an additional $16 billion in Chinese imports in two weeks, escalating a trade war between the worlds two biggest economies. Customs will begin collecting the duties on 279 product lines, down from 284 items on the initial list as of Aug. 23, the U.S. Trade Representative's Office said in an emailed statement on Tuesday. The new list covers products ranging from motorcycles to steam turbines & railway cars. Chinas trade surplus with the U.S. stood at $28.1 billion, close to the record high in June, data released Wednesday showed.

Stocks To Watch

Strides Shasun Ltd. is on the upside while Edelweiss Financial Services Ltd. is on the downside.

Strides Shasun is currently trading at Rs.413.95, up by Rs.21.55 or 5.49% from its previous closing of Rs.392.40 on the NSE. The scrip opened at Rs.393.40 & has touched a high & low of Rs.423.90 and Rs.376.60 respectively. So far 1,29,45,281 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,714.94 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.1,054 on 07-August-2017 & a 52 week low of Rs.330.30 on 21-May-2018.

Edelweiss is currently trading at Rs.306.30, down by Rs.21.65 or 6.60% from its previous closing of Rs.327.95 on the NSE. The scrip opened at Rs.314.10 & has touched a high and low of Rs.318.40 & Rs.302.75 respectively. So far 38,48,262 (NSE) shares were traded on the counter. The current market cap of the company is Rs.28,432.75 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.342.00 on 29-May-2018 and a 52 week low of Rs.220.05 on 07-August-2017.

Share Market News 07-August-2018


Market Closed Flat After Hitting New High, Nifty Below 11,400

The Benchmark indices started on a record high note as Sensex 115 points & Nifty above 11,400. The equity market gave up all gains as Sensex fell 50 points while Nifty slipped below 11,400. Baring auto & media all sectoral indices traded in red led by banks, pharma, realty, FMCG & Reliance. Nifty midcap index underperformed benchmark indices, was down 0.50%.

In afternoon session market back in green as Sensex was up 60 points while Nifty traded above 11,400. Nifty media, private banks, financials & auto, metal & It pushed the market higher while PSU bank, pharma, realty & FMCG index capped gains. The Nifty midcap index still traded under selling pressure, was down 40 points.

In the last hour of trade, the market traded flat as Sensex was up 20 points while Nifty below 11,400. The market closed flat after the range-bound session. Nifty PSU bank fell over 2% along with pharma, & realty while media, metal, auto supported the market. Nifty midcap index underperformed the market, ended 54 points lower. Sensex closed 26.09 points down at 37,665.80, Nifty up by 2.35 points at 11,389.45.

Top Gainers

Tata Steel by 4.02% to Rs.575.50, Titan by 3.03% to Rs.929.00, Bajaj Finance by 2.10% to Rs.2,752.80, Eicher Motors by 2.06%to Rs.27,595, Asian Paints by 1.98% to Rs.1,425.

Top Losers

Adani Ports by -6.08% to Rs.373.20, Coal India by -2.70% to Rs.275.50, HPCL by -1.80% to Rs.288.80, BPCL by -1.70% to Rs.394.20, Cipla by -1.87% to Rs.902.00.

Analysis Of Top Gainer And Loser

Tata Steel is the top gainer in today's market as strong buying was seen in the stock after metal prices rose in Shanghai exchange by 2%.

Adani Ports is the top loser in today's market after its profit missed Bloomberg consensus estimates in June quarter. In Q1 FY19, consolidated net profit declined 9% to Rs.697.40 crore as against Rs.767.52 crore in same quarter last fiscal year.

Key Market News

The government will hold talks with the Reserve Bank of India about relaxing capital requirements for banks and bringing them in line with the less-stringent Basel-III norms, according to a report by The Economic Times. This comes after discussions by the finance ministry with central think tank NITI Aayog and other stakeholders, a senior government official told the paper. The move is likely to free up an estimated Rs 60,000 crore of capital for state-owned lenders. It would allow banks to increase lending in order to fuel the reviving economy, bolster weaker banks and reduce pressure on the government to provide capital.

India deferred the imposition of retaliatory tariffs on some US imports to next month, opening the door to an agreement that would avert a trade war between the two nations. The higher import duty on goods like chickpeas & Bengal gram, or chana, has been delayed to Sept. 18 from Aug. 4, the finance ministry said in a notification. The move comes as trade tensions between the U.S. and China intensify. The Trump administration is considering increasing its proposed tariffs on $200 billion of Chinese goods, while Beijing has threatened to retaliate. Indias list also included tariffs on walnuts, almonds, boric acid, apples, diagnostic reagents & some hot-rolled coil products.

Stocks To Watch

Vakrangee Ltd. is on the upside while Punjab National Bank Ltd. is on the downside.

Vakrangee is currently trading at Rs.67.05, up by Rs.11.15 or 19.95% from its previous closing of Rs.55.90 on the NSE. The scrip opened at Rs.59.05 & has touched a high & low of Rs.67.05 and Rs.58.70 respectively. So far 3,27,88,675 (NSE) shares were traded on the counter. The current market cap of the company is Rs.7,003.98 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.515.00 on 24-January-2018 & a 52 week low of Rs.30.85 on 07-June-2018.

PNB is currently trading at Rs.82.90, down by Rs.7.15 or 7.94% from its previous closing of Rs.90.05 on the NSE. The scrip opened at Rs.90.25 & has touched a high and low of Rs.91.55 & Rs.82.50 respectively. So far 13,90,40,553 (NSE) shares were traded on the counter. The current market cap of the company is Rs.22,871.35 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.231.45 on 26-October-2017 and a 52 week low of Rs.71.65 on 28-June-2018.

Share Market News 06-August-2018

Bulls In Command At D-Street; Market Closed At Record High

The Benchmark indices clocked fresh record high with Sensex surged over 200 points & Nifty hit 11,400. The equity market extended gains as Sensex was up over 200 points while Nifty above 11,400. Nifty banking & financials, auto, metal traded strong while pharma, FMCG & IT traded lower. The Nifty Midcap index traded in line with benchmark indices, was up 0.40%.

In afternoon session market continued to trade higher as Sensex was up nearly 200 points while Nifty hovered around 11,400. On sectoral indices, banking & financials, auto, media & metal traded higher while pharma, FMCG & IT remained lower. Nifty midcap index outperformed frontliners, was up over half a defense.

In last hour of trade market were of days high as Sensex was up 115 points while Nifty below 11,400. The market closed at a record high but off days high. Banks led the gainers chart among all sectoral indices, while auto, energy & metals followed suit as well. In the broader markets, midcaps ended the day 87 points higher.

Sensex closed 135.73 points up at 37,691.89, Nifty up by 26.30 points at 11,387.10.

Top Gainers

Axis Bank by 3.68% to Rs.595.90, SBIN by 3.22% to Rs.308.90, ICICI Bank by 3.11% to Rs.314.50, Airtel by 2.68%to Rs.384.55, UPL by 2.35% to Rs.656.10.

Top Losers

GAIL by -3.01% to Rs.376.50, Kotak Bank by -1.95% to Rs.1,284, Tata Motors by -1.92% to Rs.253.50, HUL by -1.87% to Rs.1,730, Titan by -1.87% to Rs.902.00.

Analysis Of Top Gainer And Loser

Axis Bank is the top gainer in today's market as strong buying was seen in the stock after bank returned to profit after its first ever loss in the last quarter reported last week. The stock is trading higher from last three days.

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

Key Market News

India has decided to defer by 45 days the tit-for-tat retaliatory tariffs against 29 American products worth $235 million which were supposed to come into effect on Saturday to counter a US move to unilaterally raise import duties on Indian steel and aluminium products. The move comes at a time when the US on Monday elevated Indias status by placing it in the Strategic Trade Authorization (STA) Tier 1 listcomparable to North Atlantic Treaty Organization (Nato) alliesthat eases export of high-tech defence items to it without individual licenses.

Oil traded below $69 a barrel as investors weighed the prospect of shrinking global demand due to a trade spat between the worlds two biggest economies against signs of lower supply. After crude posted its worst monthly loss in two years in July as the U.S.-China war raised fears over global economic growth, investors are trying to assess how the conflict will affect oil demand. American President Trump defended his use of tariffs that have inflamed tensions with the Asian nation and Europe, saying that playing hardball on trade is my thing. Traders are also watching the output from OPEC and its allies as signs of a surplus of high-quality crude are emerging again.

Stocks To Watch

Trident Ltd. is on the upside while Mahindra Lifespace Developers Ltd. is on the downside.

Trident is currently trading at Rs.70.75, up by Rs.6.55 or 10.20% from its previous closing of Rs.64.20 on the NSE. The scrip opened at Rs.66.40 & has touched a high & low of Rs.72.80 and Rs.65.35 respectively. So far 82,10,193 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,607.94 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.109.50 on 20-September-2017 & a 52 week low of Rs.51.15 on 22-May-2018.

MahLife is currently trading at Rs.500.10, down by Rs.42.25 or 7.79% from its previous closing of Rs.542.35 on the NSE. The scrip opened at Rs.542.40 & has touched a high and low of Rs.543.85 & Rs.500.00 respectively. So far 46,09,328 (NSE) shares were traded on the counter. The current market cap of the company is Rs.2,583.11 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.668.40 on 20-June-2018 and a 52 week low of Rs.396.55 on 11-August-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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