Markets To Fly High With Earnings, But Profit Bookings May Turn The Game

weekly share market news and updates

Our Analysis

The Indian share market started this week optimistically, latest readings on industrial output and retail inflation helped reiterate investor expectations for further policy easing by the RBI this year. The Positive start of the earnings season by IT major TCS also helped underpin investor sentiment. Moreover, the India Meteorological Department (IMD) forecast normal southwest monsoon, Which Fueled the heavyweight to show their strength owing to which Nifty breached the record high and resumed its rally. However, on the last trading session of the three day week, The D-street were celebrating with high fives, Nifty touched the milestone of 11,850. But the media reports came in that North Korea has test-fired a new 'tactical guided weapon' , this sent the chill down in market participant and panic was seen in the markets due to which market slipped off the day's high and entered into the negative terrain for the day. The cautiousness was also seen as INDIA VIX is trading at the record high as well as there is a long weekend before the trading resumes.

Going Ahead, Market will first react to Reliance and HDFC Banks numbers next week. After a period of significant Surge, ahead of the general elections, the market is likely to take a pause in some kind of an interim profit booking. We advise investors to continue to focus on fundamentally sound stocks and buying on dips, Which would be the preferred strategy as long as the market does not have any fresh crisis to deal with the global or domestic front.

Earning Update:-

RELIANCE INDUSTRIES:- Reliance Industries Ltd (RIL) reported a 9.79% increase in its quarterly profit, beating estimates, backed by strong show by retail and telecom divisions. Retail sales (19 percent of overall) grew by 51.6 percent YoY primarily on the account of stores additions. A key highlight of the result has been margin improvement in the retail business to 4.7 percent in Q4 (vs. 3 percent in FY18) on account of operating leverage, Jio witnessed a 7 percent QoQ growth in its net revenue to Rs 11,106 crore. The driver of the growth was the net addition of 26.6 million subscribers during the quarter. With that, Jios subscriber base has reached to 306.7 million. Traditional businesses, The refining (46 percent of overall), had seen a weak set of numbers that reflect global trends. The segment posted a drop in revenues sequentially due to a planned shutdown. Further, weak product cracks adversely impacted GRMs.

Reliances revenue grew by 17.9% YoY Rs1,41,634cr. EBITDA came in at Rs 20,832cr, up 12.8% YoY. EBITDA margin contracted by 67bps YoY to 14.71%. Adjusted PAT came at Rs 10,362cr, up 9.8% YoY. EBITDA and Adjusted PAT came above estimates of Rs 19,757cr and Rs9,796cr respectively.

Jio continues to be the core focus for expansion and is expected to drive the revenue growth in the coming quarters. We believe Jio would continue its stellar run, going forward, on the back of its strategy of deeper and wider market penetration that would continue to disrupt the entire value chain. The company is also making further inroads through various strategic tie-ups and partnerships (Disney, DEN, and Hathaway) and roll-out of new services (JioGigaFiber) in 1,600 cities.

Further the growing contribution of Reliance Retail and Jio at the EBITDA level as transformational. At present both these segments contribute around 25 percent of EBITDA, which was 13 percent a year back and hardly 2 percent in 2015.

This Weeks Market Highlights:

Benchmark Indices:


1) On Monday, Indian Benchmark indices ended Higher, the Sensex was up 138.73 points at 38905.84, while Nifty was up 46.90 points at 11,690.40.

2) Among sector compiled by NSE ended higher, led by the Nifty Metal Indexs 2.4 percent gain. While, the Nifty Media Index was the top sectoral loser, down 0.5 percent.

3) On Tuesday, The Indices closed strong, with Nifty finished slightly below 10,800. The Sensex grew by 369.80 points at 39275.64, while Nifty grew by 96.80 points at 11787.20.

4) The strength was seen from the Nifty bank Sector Which was up 1.42 percent, Other than that, Infra & Auto has seen a healthy buying in todays market, Flipside, Reality & IT has loosened up some share price and closed in the red.

5) On Thursday, The Indices after hitting the record high was trading under pressure and closed with last hour of sell-off, The Bank Nifty was weak with Infra, metal, FMCG, and Auto had also given a supporting hand, The Energy sector was the one which closed in green as Reliance Industries was strong throughout the session.

6) the Sensex was down 135.36 points at 39140.28, while Nifty was down 34.40 points at 11752.80.

Broader Index & Global Market:

- Globally, The US First quarter earning got off to a strong start, However, the earning have not able to provide any direction to the indices, According to the economic news report, the US trade deficit fell to its lowest since June 2018, mainly due to the trade shortfall with China.

- In the broader market, The weakness continuous in Mid - Small cap space, The broader market underperformed as compared to the benchmark indices, Going ahead in the next phase of the rally we can expect the broader market to outshine, In valuation front the MId-Small Cap is available at a much more discounted rate, Once the uncertainty of election is over we can witness some value creation in this space.

Movers & Shakers

Shares of Deepak Fertilisers & Petrochemicals Corporation surged nearly 15 percent after the company announced the commercial production of the nitric acid complex at Dahej, Gujarat.

Shares of Jet Airways. dropped more than 36 percent in a week after Indias oldest private airline decided to temporarily suspend all flights from Wednesday night as cash ran out and banks refused to give more money.

Key Market Drivers

  • As per media reports, the government is considering a proposal to allow gas-based power plants to sell electricity in the spot market through power exchanges under a subsidy scheme. The scheme is aimed at providing relief to gas-based power plants in distress due to lack of gas supply
  • Index of industrial production (IIP) rose 0.1%, Has been slowest since a 0.3% contraction in July 2017.
  • Indias retail inflation saw a marginal rise of 2.86% in March on account of increase in prices of food articles and fuel.
  • The inflation based on the Consumer Price Index (CPI) was 2.57% in February this year.
  • RBI net buyer of dollars for the third month in a row snaps up $825 mn in Feb
  • March WPI inflation stood at 3.18% against 2.93% in February.
  • India's exports up by 11 percent to USD 32.55 billion in March.
  • India's trade balance was reported -10.89

Event Watch

International:

  • Nikkei Japan PMI Mfg
  • BOJ Policy Balance Rate
  • US GDP Annualized QoQ
  • Japan Industrial Prod YoY

Domestic:

  • Q4FY2018-19 Results
  • General Election.
  • INR movement
  • Crude Movement

Stocks To Watch

HINDPETRO, TECHM, IGL On Upside while IBULHSGFIN,ZEEL on Downside.

Share Market News 18-April-2019

Sensex, Nifty End Lower After Hitting New Highs; Reliance Industries gains 3%

Indian share market started strong with Nifty above 11,800 level. The reliance industries gain ahead of the Q4 result. the Sensex was up 106.15 points or 0.27% at 39381.79, and the Nifty up 25.80 points or 0.22% at 11813.00. Among sector compiled by NSE advanced, led by the NSE Nifty Auto Indexs 0.38 percent gain. While, the NSE Nifty IT Index was the top sectoral loser, down 0.18 percent.

In the afternoon session, The Indian share market indices erased the morning gain and were hovering around 11,750 levels, Reliance was standing tall, While Banknifty had slipped below 30,400 Mark. HDFC, INFY, VEDL, ZEE were under the selling pressure. The INDIA VIX has also breached the all-time high and was trading at 22.87. The Aviation stock was again buzzing in todays trade after cash-strapped Jet Airways temporarily shut down operations. The Sensex was down by 71.65 points or 0.18% at 39,203.99 and the Nifty was down by 24.85 points or 0.21% at 11,762.30. In a Broader Market, NSE mid-cap was down by 0.68% and smallcap indices were trading lower by 1.24%, respectively.

Closing Bell for Indian Benchmark indices, The Indices after hitting the record high was trading under pressure and closed with last hour of sell-off, The Bank Nifty was weak with Infra, metal, FMCG, and Auto had also given a supporting hand, The Energy sector was the one which closed in green as Reliance Industries was strong throughout the session . the Sensex was down 135.36 points at 39140.28, while Nifty was down 34.40 points at 11752.80. The broader market continued to underperform the Benchmark indices the Mid & Small Cap was down by 0.93 & 1.52 percent

Markets closed in the red ahead of a long weekend culminating in Easter. After a period of significant momentum ahead of the general elections, the market may take a pause in some kind of an interim profit booking. The accelerating scenario of a slowdown in global growth as also the definitive prospects of higher fuel prices and a weaker currency may also be working on the minds of the market participants at this juncture.

Top Gainers

RELIANCE by 3.15% to Rs 1,386.05. ,JSWSTEEL by 2.88% to Rs 299.60 ,TATAMOTORS by 2.30% to Rs 235.80, BPCL by 1.52% to Rs 362.95, WIPRO by 1.30% to Rs 284.55.

Top Losers

IBULHSGFIN By -4.44% to Rs 795.50, YESBANK by -4.09% to Rs 255.55 ,HINDALCO by -3.70% to Rs 207.00, VEDL by -3.54% to Rs 178.40.,INDUSINDBK by -3.17% to Rs.1,757.60.

Analysis Of Top Gainer And Loser

RELIANCE is the top gainer in today's market session Mitsui O.S.K. Lines Ltd. to acquire a strategic stake in six group companies (each owning a Very Large Ethane Carrier) of the company.

IBULHSGFIN is the top loser in today's market After the company confirmed regarding the merger with the Lakshmi Vilas bank the company was in immense selling pressure, In today market the Stock dropped nearly 5%

Key Market News

  • RBI has asked NCLAT to allow banks to classify exposure to ILFS group companies as NPA as per regulatory norms. As per RBI counsel, recognizing ILFS as NPA would not impede the resolution process.
  • Foreign portfolio investors (FPIs) bought Rs 1,038.58 crore worth of domestic stocks on Tuesday, DIIs were net buyers to the tune of Rs 37.22 crore.
  • Investments through participatory notes in the domestic capital market rose to Rs 78,110 crore at the end of March, amid positive market sentiments

Stocks To Watch

IGL is on the upside while VEDANTA is on the downside.

IGL is currently quoting at Rs.327.00 up by Rs 4.45 or 1.38% from its previous closing of Rs.322.55 on the NSE. The scrip opened at Rs.322.00 & has touched a high & low of Rs.329.75 and Rs. 318.65 respectively. So far 18,94,573(NSE) shares were traded on the counter. The current market cap of the company is Rs 22,753.53Cr. The NSE/BSE group stock has touched a 52 week high of Rs.329.75 on 18-APR-2019 & a 52 week low of Rs.215.20 on 08-OCT-2018.

VEDANTA is currently quoting at Rs.178.40 down by Rs.-6.55 or -3.54% from its previous closing of Rs.184.95 on the NSE. The scrip opened at Rs.185.30 & has touched a high & low of Rs.186.90 and Rs.178.00 respectively. So far 1,05,31,473(NSE) shares were traded on the counter. The current market cap of the company is Rs 66,426.30Cr. The BSE/NSE group stock has touched a 52 week high of Rs 313.50 on 19-APR-2018 & a 52 week low of Rs 145.80 on 15-FEB-2019.

Share Market News 16-April-2019

Sensex, Nifty hits fresh record high; ICICIBANK surges nearly 4%

Indian share market opened strong with Nifty above 11,700 level.ICICI bank had a sharp upmove, The banking stock has gained the momentum again, as its Gap up opening for BankNifty. the Sensex was up 173.03 points or 0.44% at 39078.87, and the Nifty up 51.50 points or 0.44% at 11741.90. All the sectoral indices are trading in green led by Bank metal, pharma, energy, auto, infra, and IT. The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.02 percent to 69.43 against the greenback. Reliance standing strong with the gain of more than a percent.

In the afternoon session, The Indian share market indices were trading at an all-time high, Nifty was trading around 11,780, The Sensex was up by 334.58 points or 0.86% at 39,240.42 and the Nifty was up by 88.70 points or 0.76% at 11,779.05. Among sector Infra, Bank & FMCG were trading higher, while, Reality & Media were trading in the red. In a Broder Market, NSE mid-cap was up by 0.23% and smallcap indices were trading higher by 0.16%, respectively.

Closing Bell for Indian Benchmark indices, It was strong closing for Indices with Nifty finished slightly below 10,800. The Sensex was up 369.80 points at 39275.64, while Nifty was up 96.80 points at 11787.20. It was pure play from the heavyweight as there was no participant from the border market, The NSE MidCap Index was down by 0.03 percent and the NSE SmallCap Index was flat and closed with No gain or loss. The strength was seen from the Nifty bank Sector Which was up 1.42 percent, Other than that, Infra & Auto has seen a healthy buying in todays market, Flipside, Reality & IT has loosened up some share price and closed in the red .

Nifty rose for the fourth day. With this strong upmove, Nifty touched new highs, breaching previous high of 11,761. The current rally is expected to become broad-based soon, hopefully once election results are out. Further, earnings outcome of Nifty heavyweights (Reliance Industries and HDFC Bank) this week may provide further direction. On the global front, China GDP data, US-China trade talks as well as corporate earnings will provide cues to the investors. In addition, the rupee-dollar and oil price movement are the other key factors to consider.

Top Gainers

INDUSINDBK by 3.95% to Rs 1,818.00. ,ICICIBANK by 3.87% to Rs 407.95 ,TITAN by 3.11% to Rs 1,124.00, ONGC by 2.81% to Rs 160.85, GRASIM by 2.18% to Rs 884.90.

Top Losers

WIPRO By -2.12% to Rs 281.60, CIPLA by -1.35% to Rs 558.65 ,GAIL by -0.69% to Rs 351.60 ,TATAMOTORS by -0.56% to Rs 230.45.,INFY by -0.48% to Rs.724.00.

Analysis Of Top Gainer And Loser

INDUSINDBK is the top gainer in today's market session After the IndusInd Bank has launched a new credit card Aptly called Nexxt to denote a future generation looking.

WIPRO is the top loser in today's market After the company confirmed reports about a phishing attack on its IT systems without giving out any details on the extent and effect of the hacking

Key Market News

  • India's exports up by 11 percent to USD 32.55 billion in March.
  • India's trade balance was reported -10.89B
  • Oil prices halted their rally after Russias finance minister said Russia and OPEC may decide to boost production to fight for market share with the

Stocks To Watch

ICICIBANK is on the upside while WIPRO is on the downside.

ICICIBANK is currently quoting at Rs.407.95 up by Rs 15.20 or 3.87% from its previous closing of Rs.392.75 on the NSE. The scrip opened at Rs.397.50 & has touched a high & low of Rs.408.40 and Rs. 397.50 respectively. So far 2,44,87,788(NSE) shares were traded on the counter. The current market cap of the company is Rs 2,62,243.20Cr. The NSE/BSE group stock has touched a 52 week high of Rs.409.55 on 01-APR-2019 & a 52 week low of Rs.256.50 on 16-JUL-2018.

WIPRO is currently quoting at Rs.281.60 down by Rs.-6.10 or -2.12% from its previous closing of Rs.287.70 on the NSE. The scrip opened at Rs.291.35 & has touched a high & low of Rs.291.45 and Rs.278.00 respectively. So far 2,03,67,059(NSE) shares were traded on the counter. The current market cap of the company is Rs 1,69,613.92Cr. The BSE/NSE group stock has touched a 52 week high of Rs 291.72 on 26-FEB-2019 & a 52 week low of Rs 190.13 on 06-JUN-2018.

Share Market News 15-April-2019


Sensex, Nifty Edges Higher; Tata Motors Lead Gains

Indian share market started flat with Nifty above 11,650 level. the Sensex was up 70.98 points or 0.18% at 38838.09, and the Nifty up 22.10 points or 0.19% at 11665.60. All the sectoral compiled by NSE advanced, led by the Nifty Metal Indexs 0.97 percent gain. While, the NSE Nifty IT Index was the only sectoral loser, down 0.16 percent. The Indian rupee opened higher by 8 paise at 69.07 per dollar on Monday versus Friday's close 69.15.

In the afternoon session, The Indian share market indices were trading Higher, Nifty was trading around 11,670, The Sensex was up by 116.78 points or 0.30% at 38,883.89 and the Nifty was up by 32.55 points or 0.28% at 11,676.00. Among Metal, Auto & Reality were trading higher, while, Pharma & Energy were trading in the red. In a Broder Market, NSE mid-cap was up by 0.50% and smallcap indices were trading higher by 0.83%, respectively.

Indian Share market Update in the last hour of trade, Nifty was trading at days high, Hovering around 11,700 Mark. Indian Benchmark indices ended the Sensex was up 138.73 points at 38905.84, while Nifty was up 46.90 points at 11,690.40. Among sector compiled by NSE ended higher, led by the Nifty Metal Indexs 2.4 percent gain. While, the Nifty Media Index was the top sectoral loser, down 0.5 percent. In the broader Market Update, the NSE MidCap Index was up by 0.47 percent and the NSE SmallCap Index was higher by 0.63 percent.

The market traded on a positive note as expectation of US-China trade agreement and a likely turnaround in domestic earnings steered the sentiment. IT index outperformed due to weak rupee and optimism in earnings growth. WPI inflation inched to 3.18% in March due to the rise in food prices while IMDs forecast of near-normal monsoon may ease the concern over inflation

Top Gainers

TATAMOTORS by 7.43% to Rs 232.00. ,TCS by 4.89% to Rs 2,113.00 ,COALINDIA by 4.15% to Rs 250.80, TATASTEEL by 3.81% to Rs 554.00, KOTAKBANK by 2.42% to Rs 1,376.00.

Top Losers

INFY By -2.61% to Rs 728.20, INFRATEL by -1.67% to Rs 309.40 ,SUNPHARMA by -1.38% to Rs 458.65 ,GAIL by -0.88% to Rs 353.60.,YESBANK by -0.78% to Rs.265.80.

Analysis Of Top Gainer And Loser

TATAMOTORS is the top gainer in today's market session, as the outlook of the company has been improved and overall, many brokerage houses have also started recommending the auto pack on the expectation of the growth revival in coming months.

INFY is the top loser in today's market After the company has posted the Q4FY2014 result, Which was below the estimate of the D-street.

Key Market News

  • As per media reports, the government is considering a proposal to allow gas-based power plants to sell electricity in the spot market through power exchanges under a subsidy scheme. The scheme is aimed at providing relief to gas-based power plants in distress due to lack of gas supply.
  • The index of industrial production (IIP) rose 0.1%, the slowest since a 0.3% contraction in July 2017.
  • Indias retail inflation saw a marginal rise of 2.86% in March on account of increase in prices of food articles and fuel.
  • The inflation based on the Consumer Price Index (CPI) was 2.57% in February this year.
  • RBI net buyer of dollars for the third month in a row snaps up $825 mn in February.
  • March WPI inflation stood at 3.18% against 2.93% in February.
  • Foreign portfolio investors (FPIs) bought Rs 897.45 crore worth of domestic stocks on Friday, DIIs were net sellers to the tune of Rs 15.99 crore.

Stocks To Watch

MEGHMANI ORGANICS is on the upside while TATAPOWER is on the downside.

MEGHMANI ORGANICS is currently quoting at Rs.68.00 up by Rs 3.55 or 5.51% from its previous closing of Rs.64.45 on the NSE. The scrip opened at Rs.65.10 & has touched a high & low of Rs.69.30 and Rs. 65.00 respectively. So far 35,32,525(NSE) shares were traded on the counter. The current market cap of the company is Rs 1,721.71Cr. The NSE/BSE group stock has touched a 52 week high of Rs.114.35 on 08-MAY-2018 & a 52 week low of Rs.42.15 on 06-FEB-2019.

TATAPOWER is currently quoting at Rs.71.35 down by Rs.-1.90 or -2.59% from its previous closing of Rs.73.25 on the NSE. The scrip opened at Rs.73.00 & has touched a high & low of Rs.73.20 and Rs.71.20 respectively. So far 1,11,47,566(NSE) shares were traded on the counter. The current market cap of the company is Rs 19,298.56Cr. The BSE/NSE group stock has touched a 52 week high of Rs 89.55 on 02-MAY-2018 & a 52 week low of Rs 59.80 on 09-OCT-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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