Markets May Turn Positive With Banking Rally Ahead

weekly share market news and updates

Our Analysis

The first week of 2019 started on weak note as Nifty tanked almost 2% in a week, Indian benchmark indices witnessed a selling pressure amid a global slump with a concern of global economic slowdown,worsened monthly auto sales numbers coupled with high interest rate and tight liquidity condition,a drop in GSR collection indicating government shortfall in target & concern over India's fiscal health can worsen as government is likely to announce a massive relief package for farmer.

Nevertheless, the week bought some cheerful news for the banking sector, The central bank stated improvement in the asset quality of the bank during first-half of FY2018-19,On the other hand one-time restructuring scheme for certain small borrowers on the loan not exceeding Rs 25 Cr is likely to be positive for banks and Nbfc.
The heavy-weight HDFC twins, Reliance, Eicher, M&M, Vedanta saw a significant drop in there share price, the pain was also visible in the broader market. Even though the global growth has slowed, India seems to be better placed to continue its growth, As the Indian economy is major driven by domestic consumption and only 18% of India's GDP can be attributed to export.

This Weeks Market Highlights:

Benchmark Indices:

1) Indian benchmark indices Ended flat on the last day of the year, the Sensex was down 8.39 points at 36068.33, and the Nifty up 0.02% at 10862.50.

2) Among the sector indices, BSE ended higher led by the BSE Metal Index's 1.4 % gain. While, S&P BSE Telecom Index was a top loser, down 0.80 percent.

3) On Tuesday, Indian equity benchmarks kicked off 2019 on a strong note, Nifty 50 Index advanced 0.44 percent or 48 points to 10,910.

4) On Wednesday, Indian benchmark indices declined taking negative cues from global markets, and as investors turned cautious ahead of corporate earnings beginning next week. Nifty down 1.08% at 10792.50.

5) Indian benchmark indices declined for a second straight day On Thursday, around 1% following a selloff in Asian markets.

6) The Nifty lower by 120.20 points or 1.11% at 10672.30. Overall sell-off among sectors, financials, automobiles, and metals bled.

7) Indian benchmark indices Sensex and Nifty 50 advanced on Friday led by auto and metal stocks.

Broader Index & Global Market:

-In global markets, world shares started 2019 on a lower note, with stocks dive across Europe and Asia along with US equity futures after evidence of slowing Chinese growth, Shares in Asia fell again on Thursday and US stock futures dropped sharply after Apple Inc cut its revenue forecast due in part to weaker sales in China, adding to concerns about the slowing global economy.

- This week broader market Nifty midcap & smallcap index has seen the pain with benchmark indices, Shrank more than 2%.

Movers & Shakers

Shares of Kolte-Patil Developers jumped more than 8 percent in a week after rating agency CRISIL revised long-term outlook on the company's bank loan facilities. The Pune-based real estate company informed exchanges on Monday that CRISIL reaffirmed its long-term rating on company's bank loan facilities of Rs 600 crore (enhanced from Rs 300 crore earlier) at A+. The rating agency revised its outlook on debt instruments to positive from stable earlier.

Shares of the Eicher Motors company plunged more than 10 percent, after Royal Enfield reported a 13 percent slump in sales on a yearly basis to 58,278 units in December, according to its stock exchange filing. The stock has slumped 12.46 percent in two days posting its biggest two-day decline since Oct. 5.

Key Market Drivers

  • China's manufacturing sector shrink in December for the first time in more than two years. The Purchasing Managers Index (PMI) fell to 49.4 in December Vs 50 MoM.
  • India FX Reserves (USD) reported 393.29B vs 393.12B WoW.
  • Goods and Services Tax collection dropped to Rs 94,726 crore in December 2018, lower than Rs 97,637 crore collected in the previous month. However, compliance improved during the month as the total number of sales returns or GSTR-3B filed in December stood at 72.44 lakh against 69.6 lakh filed in November.
  • The Reserve Bank of India has started a loan-restructuring window for micro, small and medium enterprises (MSMEs) for a year, yielding to a key demand of the government that had sought such a facility.
  • Market regulator Securities and Exchange Board of India (Sebi) has planned to implement mandatory physical settlement for all stock derivatives by October 2019. The new system will be implemented in three phases starting April.
  • The Caixin/Markit Manufacturing Purchasing Managers Index (PMI) for December, released on Wednesday, fell to 49.7 from 50.2 in November.
  • India Infrastructure Output ,Reported 3.5% vs 4.8% YoY. India Foreign Debt (USD) ,recorded 510.4B vs 514.4B
  • The direct tax-to-GDP ratio of 5.98% achieved during 2017-18 is the best in the last 10 years, It was 5.57 percent in 2016-17 and 5.47 % in 2015-16.
  • The AUM of passively managed funds has crossed the Rs 1 lakh crore mark. While most of the funds continue to come from the mandatory contribution to the EPFO, financial planners point out that an increasing number of HNIs and retail investors have started pouring money into index funds and ETFs as actively managed funds in the large-cap space have failed to outperform their benchmarks.
  • The Union Cabinet approved the merger of Bank of Baroda, Vijaya Bank, and Dena Bank that will create Indias second-largest public-sector lender.
  • The Reserve Bank of India said it will form an eight-member expert committee include government representatives, bankers, and academicians to identify the issues and suggest a long-term solution for economic and financial sustainability of small businesses. The committee will be headed by UK Sinha, former chairman of Securities and Exchange Board of India.
  • Banks and shadow banks granted a one-time restructuring of loans of up to 250 million rupees ($3.6 million) to micro, small and medium enterprises (MSME) that were in default on Jan. 1, without having to mark them as nonperforming, Lenders are being given an supplement of 15 months (up to March 31, 2020) to pretend that these stressed loans are standard.
  • The Nikkei Manufacturing Purchasing Managers Index declined to 53.2 in December from 54 in November.

Event Watch

  • The GST Council is scheduled to meet on January 10 to discuss lowering GST on under-construction flats and houses to 5 percent & hiking exemption threshold for small and medium enterprises.
  • Bank Loan Growth, Deposit Growth, FX Reserves, USD
  • U.S. Fed Chair Powell Speaks on 6th Dec. U.S. Crude Oil Inventories
  • India Manufacturing Output MoM. India Industrial Production YoY
  • U.K. Gross Domestic Product (GDP) MoM, Earning of TCS & INFY.

Stocks To Watch

Kajaria Ceramics & Indraprastha Gas is on the upside while M&M is on the downside.

Share Market News 03-January-2019


Sensex, Nifty Fall Over 1 %; Metal,auto decline.

Indian benchmark indices declined for a second straight day on Thursday, with the Nifty trading below 10,800. The Sensex is up 28.52 points or 0.08% at 35920.04, while the Nifty is down 2.20 points or 0.02% at 10790.30. Among sector compiled by BSE were trading lower led by the S&P BSE Oil & Gas Index's 1 percent decline. While, S&P BSE Realty Index was the top gainer, up 0.3 percent. Mid- and small-cap shares were trading flat.

In the afternoon session, the Indian benchmark indices continued to trade lower. The BSE Sensex down by 0.21 percent or 75.24 points to 35,816.28 and the NSE Nifty 50 Index down by 0.33 percent or 36.05 points to 10,756.45. Among sector Metal, Media, energy were trading in red, While FMCG, the reality was in green. The broader markets, the NSE midcap was up by 0.13 % and smallcap indices were trading down by 0.14%, respectively.

In the last hour of trade, Indian benchmark indices extended losses Nifty was trading at 10678.50. Indian benchmark indices declined around 1% following a selloff in Asian markets. The Sensex was down 377.81 points or 1.05% at 35513.71, and the Nifty lower by 120.20 points or 1.11% at 10672.30. Overall sell-off among sectors, financials, automobiles, and metals bled. Mid- and small-cap shares also witnessed pain as the BSE MidCap Index was down by 1 percent and the BSE SmallCap Index declined 0.6 percent.

Top Gainers

INFRATEL by 3.31% to Rs 273.00. , TITAN by 0.31% to Rs 935.00, HCLTECH by 0.28% to Rs 949.00., ASIANPAINT by 0.27% to Rs 1,387.00., BAJAJ-AUTO by 0.11% to Rs 2,695.00.

Top Losers

EICHERMOT is the top loser in today's market, Shares of the Delhi-based auto company extended losses for the 2nd consecutive day and fell as much as 4.22%, After Royal Enfield reported a 13 percent Shrink in sales on a yearly basis to 58,278 units in December, according to its stock exchange filing.

Analysis Of Top Gainer And Loser

INFRATEL is the top gainer in today's market, The company has witnessed a good buying interest.

EICHERMOT is the top loser in today's market, Shares of the Delhi-based auto company extended losses for the 2nd consecutive day and fell as much as 4.22%, After Royal Enfield reported a 13 percent Shrink in sales on a yearly basis to 58,278 units in December, according to its stock exchange filing.

Key Market News

  • The Nikkei Manufacturing Purchasing Managers Index declined to 53.2 in December from 54 in November.
  • The direct tax-to-GDP ratio of 5.98% achieved during 2017-18 is the best in the last 10 years, It was 5.57 percent in 2016-17 and 5.47 % in 2015-16.
  • The AUM of passively managed funds has crossed the Rs 1 lakh crore mark. While most of the funds continue to come from the mandatory contribution to the EPFO, financial planners point out that an increasing number of HNIs and retail investors have started pouring money into index funds and ETFs as actively managed funds in the large-cap space have failed to outperform their benchmarks.
  • The Union Cabinet approved the merger of Bank of Baroda, Vijaya Bank, and Dena Bank that will create Indias second-largest public-sector lender.
  • The Reserve Bank of India said it will form an eight-member expert committee include government representatives, bankers, and academicians to identify the issues and suggest a long-term solution for economic and financial sustainability of small businesses. The committee will be headed by UK Sinha, former chairman of Securities and Exchange Board of India.
  • Banks and shadow banks granted a one-time restructuring of loans of up to 250 million rupees ($3.6 million) to micro, small and medium enterprises (MSME) that were in default on Jan. 1, without having to mark them as nonperforming, Lenders are being given an supplement of 15 months (up to March 31, 2020) to pretend that these stressed loans are standard.
  • Germany Manufacturing Purchasing Managers Index (PMI) Recorded 51.5

Stocks To Watch

KNR Construction is on the upside while BHEL is on the downside.

KNR Construction is currently quoting at Rs.219.80, up by Rs 5.50 or 2.57% from its previous closing of Rs.214.30 on the NSE. The scrip opened at Rs.216.05 & has touched a high & low of Rs.229.50 and Rs.216.05 respectively. So far 7,74,175(NSE) shares were traded on the counter. The current market cap of the company is Rs 3,086.55Cr. The NSE/BSE group stock has touched a 52 week high of Rs. 339.80 on 12-Feb-2018 & a 52 week low of Rs.165.00 on 11-OCT-2018.

BHEL is currently quoting at Rs.70.70 down by Rs.-2.30 or -3.15% from its previous closing of Rs.73.00 on the NSE. The scrip opened at Rs.73.00 & has touched a high & low of Rs.73.00 and Rs.70.40 respectively. So far 80,83,906(NSE) shares were traded on the counter. The current market cap of the company is Rs.26,030.23Cr. The BSE/NSE group stock has touched a 52 week high of Rs 107.95 on 23-JAN-2018 & a 52 week low of Rs 61.70 on 11-DEC-2018.

Share Market News 02-January-2019

Sensex plunge 1%, Nifty ends below 10800 dragged by auto, metal stocks.

Indian benchmark indices had started the day on a lower note, with the Nifty falling nearly 70 points as stocks in Asian markets declined over slowing growth in China.BankNifty and the midcap index are in the red, while selling is visible among auto, metal, and pharma. The Sensex is down 146.02 points or 0.40% at 36108.55, and the Nifty down 65.80 points or 0.60% at 10844.30. The market breadth was leaning in favor of sellers.

In the afternoon session, the Indian benchmark indices continued to trade lower. The BSE Sensex down by 0.21 percent or 76.93 points to 36177.64 and the NSE Nifty 50 Index down by 0.31 percent or 33.55 points to 10,876.55. Among sector Auto, Metal, Media, Infra were trading in red, While IT, Bank nifty were in green. The broader markets, the NSE midcap and smallcap indices were trading up by 0.02% and 0.03%, respectively.

In the last hour of trade, Indian benchmark indices extended losses Nifty was trading at 10752.50. Indian benchmark indices declined taking negative cues from global markets, and as investors turned cautious ahead of corporate earnings beginning next week. The Sensex was down 363.05 points or 1.00% at 35891.52, while the Nifty down 117.60 points or 1.08% at 10792.50. Selling was visible among automobiles, banks, energy, metals, and pharmaceuticals. The BSE midcap and smallcap indices were down 1.26% and 0.74%, respectively.

Top Gainers

SUNPHARMA by 1.48% to Rs 439.95. , INFRATEL by 1.12% to Rs 265.20, TCS by 0.85% to Rs 1,919.00., ASIANPAINT by 0.62% to Rs 1,380.05., INFY by 0.44% to Rs 668.00.

Top Losers

EICHERMOT By -9.40% to Rs 21,014.00, JSWSTEEL by -5.44% to Rs 287.40, TATASTEEL by -4.51% to Rs 492.50 ,VEDL by -4.40% to Rs.193.20 , M&M by -4.24% to Rs.740.55.

Analysis Of Top Gainer And Loser

SUNPHARMA is the top gainer in today's market, SEBI having accepted some of Kotak Committees recommendations, Sun Pharma will be required to change course. As the company rethinks its governance structure, investors are better placed in proactively voicing their opinions on the following issue.

EICHERMOT is the top loser in today's market, Shares of the Delhi-based auto company extended losses and fell as much as 9.40%, After Royal Enfield reported a 13 percent Shrink in sales on a yearly basis to 58,278 units in December, according to its stock exchange filing.

Key Market News

  • Goods and Services Tax collection dropped to Rs 94,726 crore in December 2018, lower than Rs 97,637 crore collected in the previous month. However, compliance improved during the month as the total number of sales returns or GSTR-3B filed in December stood at 72.44 lakh against 69.6 lakh filed in November.
  • The Reserve Bank of India has started a loan-restructuring window for micro, small and medium enterprises (MSMEs) for a year, yielding to a key demand of the government that had sought such a facility.
  • Market regulator Securities and Exchange Board of India (Sebi) has planned to implement mandatory physical settlement for all stock derivatives by October 2019. The new system will be implemented in three phases starting April.
  • The Caixin/Markit Manufacturing Purchasing Managers Index (PMI) for December, released on Wednesday, fell to 49.7 from 50.2 in November.

    The GST Council is scheduled to meet on January 10 to discuss lowering GST on under-construction flats and houses to 5 percent & hiking exemption threshold for small and medium enterprises.

  • Three of the big four auditorsEY, Deloitte and KPMGauditing the debt-laden IL&FS and its affiliate firms are off the hook for now after a National Company Law Tribunal (NCLT) said the firms had not prepared the accounts, only audited them.India Infrastructure Output ,Reported 3.5% vs 4.8% YoY.
    India Foreign Debt (USD) ,recorded 510.4B vs 514.4B

Stocks To Watch

TITAN is on the upside while M&M is on the downside.

TITAN is currently quoting at Rs.931.50, up by Rs 3.50 or 0.38% from its previous closing of Rs.928.00 on the NSE. The scrip opened at Rs.923.30 & has touched a high & low of Rs.937.00 and Rs.923.30 respectively. So far 2,672,587(NSE) shares were traded on the counter. The current market cap of the company is Rs 82,741.67Cr. The NSE/BSE group stock has touched a 52 week high of Rs. 999.70 on 18-APR-2017 & a 52 week low of Rs.732.30 on 09-OCT-2018.

M&M is currently quoting at Rs.740.55 down by Rs.-4.24 or -32.80% from its previous closing of Rs.773.35 on the NSE. The scrip opened at Rs.772.80 & has touched a high & low of Rs.772.80 and Rs.735.10 respectively. So far 1,05,96,260(NSE) shares were traded on the counter. The current market cap of the company is Rs.92,182.73Cr. The BSE/NSE group stock has touched a 52 week high of Rs 993.00 on 29-AUG-2018 & a 52 week low of Rs 694.00 on 11-DEC-2018.

To Read Our Latest Share Market Analysis, Nifty & Sensex updates CLICK HERE...

SUBSCRIBE TO OUR NEWSLETTER

Join Our Nvestor community and get investing insight, stock tips, news & analysis directly deliver to your mailbox.

 

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.

LEAVE A COMMENT

RECOMMENDED READING

Time To Go For Value Over Momentum, Market To Remain Rangebound

Our Analysis Indian share market since the budget announcement has been in the trap of the bears, albeit the budget was more convincing for long term vision rather than a short term act
Read More>>

Share Market News: Today’s Nifty & Sensex Updates

Share Market News 11-July-2019
Read More>>

A Series Of Macro-Events To Guide Nifty, Either 12000+ or 11500

Our Analysis Once again bouncing from the 50-EMA, the benchmark indices posted a decent gain on the derivatives expiry week. However, the Jun series was seen a 'time-wise correction' a
Read More>>

Tiding Volatility Patiently Could Lead To Higher Returns

Our Analysis This week market witnessed a bidirectional run where bears dominated most of the trading sessions. Lofty market valuations, substandard monsoon expectations, NBFC’s liquidi
Read More>>