Indian Traders Show Appreciation For The Rupee Depreciation
Aug 31, 2018 | 15:19 PM IST
Aug 31, 2018 | 15:19 PM IST
Our Analysis
Markets have touched new record highs in a consecutive manner. Benchmark Index, Nifty has crossed 11,750 mark for the first time led by IT, Pharma, Metal & FMCG stocks ahead of F&O expiry. However, markets corrected from the higher level on expiry day due to lack of positive trigger & weakened rupee. Mid-cap pharma & IT stocks witnessed a rally due to depreciating rupee. With the lack of positive domestic news, markets mostly reacted with the global markets. Markets are expected to consolidate in near-term however view remains bullish, as F&O data showed strong rollover for Sept. series. Indias Auto numbers along with several micro & macro data, crude oil prices & movement of rupee will be key things to watch in the near term.
This Weeks Market Highlights:
Benchmark Indices:
1. The benchmark indices started the week on a strong note, Sensex surged 442 points whereas Nifty near 11,700 mark.
2. All sectoral indices closed on a higher note led by baking & financials, IT, metal, auto, and FMCG. Nifty midcap index outperformed the market by closing at 232 points higher.
3. On Tuesday markets have managed to hit a fresh record high where Sensex rose 202 points and Nifty ended above 11,700 mark.
4. Apart from metals, big moves were seen among energy, IT & auto sectors, while banks & FMCG were most laggards. The Nifty midcap index ended 56 points lower.
5. On Wednesday equity indices closed at lower levels whereas Sensex fell by 174 points while Nifty dragged below 11,700 mark ahead of F&O expiry.
6. On Thursday equity market closed lower for the 2nd consecutive day on F&O expiry where Sensex closed 33 points lower and Nifty remained below 11,700.
7. On Friday market opened on a flat note, but later have gained strength to trade higher.
Sectoral Index:
-This week broader market outperformed frontliners led by Nifty midcap & smallcap which rose 2-3% compared to Nifty which remained flat. On sectoral indices, Nifty pharma, IT, FMCG & metal index rose 3-8% while Banking & Financials, realty, auto remained week owing to the profit booking in stocks.
- Global market traded mix but US market continued its rally to touch record highs backed by the heavyweights. The rally in the European and other Asian markets which has been witnessed early in the week seems to be normalized with the further corrections due to the trade war fears and the US presidents statement over getting out from WTO on fair play constraints.
- Crude oil also inched higher little bit during the week but expected to remain near $75 per barrel going ahead. Along with the trade war & crude oil prices, several macroeconomic data from the US will be a key event to watch in the near term.
Movers & Shakers
Shares of Non-banking finance company Sundaram Finance surged over 15% this week after reporting a net profit of Rs.140.72 crore which represents a 26% YoY increase in its latest quarter ended June 30, 2018, as against the net profit of Rs.111.74 crore in the past previous year. During the quarter Disbursements have stood at Rs.4062 crore as against Rs.3,420 in Q1FY17 representing a growth of 19% YoY.
Shares of InterGlobe aviation corrected over 10% this week, on the back of rising crude oil prices. According to the Reuters report, oil prices inched up on Thursday extending solid gains from the on a fall in U.S. crude inventories and expected disruptions to supply from Iran and Venezuela
Key Market Drivers
As per the Reuters poll, India likely to grow at 7.6% during the April-June quarter, propelled in part by an improvement in manufacturing and exports. The median consensus in a poll of 50 economists put annual economic growth just a touch lower than the near two-year high of 7.7% in the January-March quarter. Forecasts for the $2.59 trillion economy ranged between 7.0 - 8.0%. The poll results suggest strong domestic demand, primarily driven by manufacturing activity that remained solid despite elevated oil prices and a weakening Indian rupee.
On Monday, The Allahabad High Court has refused to grant interim relief to power sector defaulters who had appealed for a stay on the Reserve Bank of India's (RBI's) circular on being dragged to the National Company Law Tribunal (NCLT). According to experts, this could hurt the banking sector. Around 60 companies, including power firms, have found to be loan defaulters and are expected to be taken to the NCLT by lenders post 180-day grace period granted by the Reserve Bank of India's February 12 circular.
Event Watch
Indias Nikkei Markit Manufacturing PMI & Nikkei Services PMI for Aug. data will be presented on 3rd & 5th Sept. 2018.
Indias Monthly Auto Sales Data will be presented on 1st Sept. 2018.
Global:- US ADP Non-farm employment change, ISM Non-Manufacturing PMI, Non-farm Payrolls, Unemployment rate, Markit Composite PMI & Services PMI data will be presented next week.
Stocks To Watch
Cadila Healthcare Ltd. is on the upside while HCC Ltd. is on the downside.
Share Market News 30-August-2018
The Market Tumbled On Expiry Day As Private Banks Drag, Nifty Below 11,700
The Benchmark indices opened flat ahead of F&O August expiry with Sensex was up 1 point & Nifty below 11,700. The equity market traded lower as Sensex fell 35 points while Nifty struggled below 11,700. Nifty banking, financials & IT dragged market while metal, pharma, FMCG & auto index capped losses. The Nifty midcap index traded higher compare to frontline indices, traded 40 points higher.
In the afternoon session, the market fell further as Sensex was down 85 points while Nifty struggled near 11,650. Nifty metal, pharma & FMCG index capped losses while banking & financials, IT dragged market. The Nifty midcap index continued to trade higher against the market, traded 32 points higher.
In the last hour of trade, the market remained lower as Sensex was down 70 points while Nifty below 11,700. The market closed lower on F&O expiry day. Among sectors, FMCG, metals & pharma along with PSU banks were the top gainers, while auto, energy & Bank Nifty were the big laggards. Nifty midcap index outperformed frontline indices, closed 25 points higher. Sensex closed 32.83 points down at 38,690.10, Nifty up by 15.10 points at 11,676.80.
Top Gainers
Sun Pharma by 3.31% to Rs.641.80, GAIL by 2.45% to Rs.375.00, Tata Steel by 2.37% to Rs.608.30, NTPC by 2.08%to Rs.169.50, UPL by 2.07% to Rs.694.05.
Top Losers
Eicher Motors by -2.04% to Rs.27,615, Bajaj Finance by -1.93% to Rs.2,928, HPCL by -1.79% to Rs.253.10, IndusInd Bank by -1.70% to Rs.1,873.10, Maruti Suzuki by -1.63% to Rs.9,215.
Analysis Of Top Gainer And Loser
Sun Pharma is the top gainer in today's market after Global research firm Credit Suisse has maintained an outperform rating with an increased target of Rs.705 apiece.
Eicher Motors is the top loser in today's market after global brokerage firm Nomura said in its report that August month may remain sluggish for Auto firm.
Key Market News
Iraq sees a need to increase crude exports and says its ready to ship more as soon as OPEC agrees how members will share a collective supply boost, according to the acting director-general of the state-run Oil Marketing Co. Exports will be close to 3.595 million barrels a day this month, Alaa Al-Yasiri said Wednesday in an interview in Baghdad. That would be a record, he said, up from 3.54 million barrels a day in July. Analysts have been uncertain about Iraqs ability to raise production quickly, amid investment constraints and hold-ups that have seen Royal Dutch Shell Plc exit one of the countrys biggest oil projects.
India has asked its central bank to prepare a list of candidates for the merger among 21 government-controlled lenders as it seeks to strengthen a banking system laden with bad debt, people familiar with the matter said. In a meeting this month, finance ministry officials also asked the Reserve Bank of India to suggest a time frame for the consolidation, the people said, asking not be named as the information isnt public. The move is aimed at creating fewer, better-capitalized lenders and improving regulatory oversight, they said.
Stocks To Watch
ITI Ltd. is on the upside while Kajaria Ceramics Ltd. is on the downside.
ITI is currently trading at Rs.111.90, up by Rs.18.65 or 20.00% from its previous closing of Rs.93.25 on the NSE. The scrip opened at Rs.101.00 & has touched a high & low of Rs.111.90 and Rs.100.95 respectively. So far 1,31,12,421 (NSE) shares were traded on the counter. The current market cap of the company is Rs.6,249.60 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.164.90 on 26-October-2017 & a 52 week low of Rs.71.20 on 05-June-2018.
Kajaria Ceramics is currently trading at Rs.475.00, down by Rs.17.25 or 3.50% from its previous closing of Rs.492.25 on the NSE. The scrip opened at Rs.495.00 & has touched a high and low of Rs.496.25 & Rs.473.00 respectively. So far 10,98,096 (NSE) shares were traded on the counter. The current market cap of the company is Rs.7,534.24 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.767.70 on 21-September-2017 and a 52 week low of Rs.406.00 on 17-August-2018.
Share Market News 29-August-2018
Market Snapped 2-Days Gain, Nifty Break 11,700, Dragged By RIL
The Benchmark indices opened flat after strong rally as Sensex was down 11 points & Nifty hold 11,700. The equity market remained flat as Sensex was down 10 points while Nifty above 11,700. Nifty PSU bank, realty, metal, auto & pharma supported market while IT, FMCG index dragged market. Nifty midcap index outperformed benchmark indices, traded 165 points higher.
In the afternoon session, the market fell further as Sensex was down 90 points while Nifty held 11,700. Losses in IT, infra, energy & FMCG names are being offset by metals, PSU banks and automobiles. The Nifty midcap index maintained its outperformance over benchmark indices, was up around 1%.
In the last hour of trade market remained lower as Sensex was down 60 points while Nifty held 11,700. The market snapped 2-days rally. Banks had a negative impact on the market, along with energy stocks, infra, IT & pharma names. However, PSU banks and metals tried to offset the losses, but bulls had the tide in their favour. Nifty midcap index outperformed the market, closed 108 points higher. Sensex closed 173.70 points down at 38,722.93, Nifty up by 46.60 points at 11,691.90.
Top Gainers
UPL by 4.87% to Rs.686.00, Bajaj Finance by 1.96% to Rs.2,990, SBIN by 1.47% to Rs.309.85, ONGC by 1.32%to Rs.176.90, GAIL by 0.97% to Rs.367.80.
Top Losers
Coal India by -2.85% to Rs.286.30, Power Grid by -2.08% to Rs.193.05, Lupin by -1.99% to Rs.883.85, Reliance by -1.90% to Rs.1,293.90, IndusInd Bank by -1.58% to Rs.1,903.15.
Analysis Of Top Gainer And Loser
UPL is the top gainer in today's market as strong buying was seen in the stock & more potential upside is expected in the stock.
Coal India is the top loser in today's market as some sort of selling pressure was seen in the stock.
Key Market News
The Indian rupee fell 0.6% to hit a fresh record low of 70.51 against the U.S. dollar. The domestic units previous record low was 70.3950 on Aug 16. It was the worst performer among Asian peers today, continuing its run as the worst performing currency in the region--down 9.4% so far this year. The rupee is on track to fall for the seventh straight month in August, its longest losing streak in nearly 18 years. The local unit has declined 2.84% so far this month.
India likely grew 7.6% in the April-June quarter, propelled in part by an improvement in manufacturing and exports, a Reuters poll showed. The median consensus in a poll of 50 economists put annual economic growth just a touch lower than the near two-year high of 7.7% in the January-March quarter. Forecasts for the $2.59 trillion economy ranged between 7.0 & 8.0%. The poll results suggest domestic demand was strong, driven primarily by manufacturing activity that remained solid despite elevated oil prices and a weakening Indian rupee. "India is a domestic-driven economy so a recovery in private consumption can outweigh external headwinds," said Charu Chanana, economist & market strategist at Continuum Economics.
Stocks To Watch
JSW Steel Ltd. is on the upside while Suven Life Sciences Ltd. is on the downside.
JSW Steel is currently trading at Rs.397.80, up by Rs.31.60 or 8.63% from its previous closing of Rs.366.20 on the NSE. The scrip opened at Rs.371.40 & has touched a high & low of Rs.408.70 and Rs.370.00 respectively. So far 4,44,45,933 (NSE) shares were traded on the counter. The current market cap of the company is Rs.96,447.10 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.408.70 on 29-August-2018 & a 52 week low of Rs.229.50 on 25-September-2017.
Suven Life is currently trading at Rs.272.15, down by Rs.18.85 or 6.48% from its previous closing of Rs.291.00 on the NSE. The scrip opened at Rs.295.20 & has touched a high and low of Rs.299.85 & Rs.268.00 respectively. So far 36,30,061 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,451.26 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.299.85 on 29-August-2018 and a 52 week low of Rs.157.50 on 08-September-2017.
Share Market News 28-August-2018
Record High Run Continues On D-Street Led By Reliance & HDFC Twins
The Benchmark indices started again on a record high as Sensex rose 150 points & Nifty above 11,700. The equity market remained strong as Sensex was up 160 points while Nifty near 11,750. The Nifty metal rose over 1% followed by IT, media & auto while banks & realty remained under pressure. Nifty midcap index underperformed benchmark indices, traded 11 points lower.
In the afternoon session, bulls took control on D-street as Sensex surged 200 points & Nifty near 11,750. Nifty metal, IT, pharma, auto continued to support the market while banks, realty, & FMCG index were under pressure. Nifty midcap index underperformed the market, was down 35 points.
In the last hour of trade, the market remained higher Sensex was up 180 points while Nifty above 11,700. The market ended at another record closing high. Apart from metals, big moves were seen among energy, IT and auto names, while banks and FMCG were the biggest laggards. The Nifty midcap index closed 56 points lower. Sensex closed 202.52 points up at 38,896.63, Nifty up by 46.55 points at 11,738.50.
Top Gainers
Hindalco by 4.17% to Rs.239.85, Reliance by 2.40% to Rs.1,322.50, Adani Ports by 2.54% to Rs.387.50, VEDL by 2.15%to Rs.230.35, Maruti by 1.75% to Rs.9,407.40.
Top Losers
GAIL by -4.83% to Rs.364.85, Yes Bank by -3.24% to Rs.370.60, HindPetro by -1.89% to Rs.257.10, Cipla by -1.76 to Rs.648.00, Dr. Reddy by -1.31 to Rs.2,411.
Analysis Of Top Gainer And Loser
Hindalco is the top gainer in today's market after Global brokerage firm JP Morgan Maintained Overweight; raised price target to Rs.370 from Rs.355, implying a potential upside of 60.5% from the last regular trade.
GAIL is the top loser in today's market after Oil Minister D. Pradhan today ruled out separating GAIL's gas transportation & marketing businesses but said the state-owned gas utility should divest its non-core petrochemical business at a good price.
Key Market News
The Allahabad High Court on Monday refused to grant interim relief to power sector defaulters that had appealed for a stay on the Reserve Bank of India (RBI) circular on being dragged to the National Company Law Tribunal. This, according to experts, could hurt the banking sector. Close to 60 companies, including power firms, have turned loan defaulters and will have to be taken to the NCLT by lenders after the 180-day grace period granted by the Reserve Bank of Indias February 12 circular ended on August 27.
The United States and Mexico agreed on August 27 to overhaul the North American Free Trade Agreement (NAFTA), putting pressure on Canada to agree to new terms on auto trade and dispute settlement rules to remain part of the three-nation pact. Auto stocks soared and the S&P 500 and the Nasdaq rallied to record highs on the expectation that Canada would sign onto the deal & ease the economic uncertainty caused by US President Trump's repeated threats to ditch the 1994 accord. Details of gains & concessions in the deal were only starting to emerge on Monday. Trump threatened he still could put tariffs on Canadian-made cars if Canada did not join its neighbours & warned he expected concessions on Canada's dairy protections.
Stocks To Watch
Adani Enterprises Ltd. is on the upside while Union Bank of India Ltd. is on the downside.
Adani Enterprises is currently trading at Rs.228.85, up by Rs.17.00 or 8.02% from its previous closing of Rs.211.85 on the NSE. The scrip opened at Rs.212.65 & has touched a high & low of Rs.232.50 and Rs.209.45 respectively. So far 3,63,88,656 (NSE) shares were traded on the counter. The current market cap of the company is Rs.25,207.65 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.232.50 on 28-August-2018 & a 52 week low of Rs.100.85 on 02-July-2018.
Union Bank is currently trading at Rs.86.00, down by Rs.3.80 or 4.23% from its previous closing of Rs.89.80 on the NSE. The scrip opened at Rs.90.00 & has touched a high and low of Rs.90.10 & Rs.84.55 respectively. So far 1,17,41,159 (NSE) shares were traded on the counter. The current market cap of the company is Rs.10,002.99 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.196.05 on 26-October-2017 and a 52 week low of Rs.73.90 on 17-July-2018.
Share Market News 27-August-2018
D-Street Ends At Record Closing High, Nifty Hits 11,700 Led By Banks
The Benchmark indices started again on a record high with Sensex rose 200 points & Nifty above 11,600. The equity market continued to surge as Sensex was up 350 points while Nifty above 11,650. Baring media & pharma all sectoral indices traded in green led by banking & financials, IT, metal, auto & FMCG. Nifty midcap index underperformed benchmark indices, traded over 1% higher.
In the afternoon session, bulls took control on D-street as Sensex surged 460 points & Nifty eyed 11,700. All sectoral indices traded in green led by banking & financials, metal, IT, FMCG, auto & realty, rose 0.5%-2%. Broader market continued to trade higher led by Nifty midcap index, was up over 250 points.
In last hour of trade market remained near an all-time high as Sensex was up 455 points while Nifty near 11,700. The market ended at record closing high. All sectoral indices closed higher led by baking & financials, IT, metal, auto, FMCG. Nifty midcap index outperformed benchmark indices closed 232 points higher. Sensex closed 442.31 points up at 38,694.11, Nifty up by 134.85 points at 11,691.95.
Top Gainers
Hindalco by 3.65% to Rs.230.20, Bharti Airtel by 3.51% to Rs.381.90, Power Grid by 3.35% to Rs.197.35, Tech Mahindra by 3.21%to Rs.741.65, ICICI Bank by 2.92% to Rs.339.80.
Top Losers
Sun Pharma by -1.32% to Rs.621.50, Bajaj Finserv by -0.29% to Rs.7,030.45, Dr. Reddy by -0.10% to Rs.2,445.00.
Analysis Of Top Gainer And Loser
Hindalco is the top gainer in today's market as it said that alumina prices likely to stay strong in the near-term.
Sun Pharma is the top loser in today's market after the U.S. FDA has started a surprise inspection at its Halol plant in Gujarat, three people familiar with the matter told BloombergQuint.
Key Market News
Federal Reserve officials are trying hard to ignore President Donald Trump, and theyre going to keep doing that even if he continues to put pressure on the central bank to slow down or stop its gradual increases in interest rates. At the Kansas City Feds annual symposium in Jackson Hole, Wyoming, several policymakers responded to questions about recent remarks by Trump with straightforward comments that their rate decisions wont be affected. The job of a central bank and my job is to make decisions on monetary policy without regard to political considerations or political influence, Dallas Fed President Robert Kaplan said in an interview. Im very confident well do that.
Oil prices dipped slightly on Monday on concerns that a US-China trade dispute will erode global economic growth, although looming US sanctions against Iran's oil sector kept crude from falling further, traders said. International Brent crude oil futures were at $75.75 per barrel at 0122 GMT, down 7 cents from their last close. US West Texas Intermediate (WTI) crude futures were down 9 cents at $68.63 a barrel.
Stocks To Watch
Adani Transmission Ltd. is on the upside while LIC Housing Finance Ltd. is on the downside.
Adani Transmission is currently trading at Rs.204.00, up by Rs.34.00 or 20% from its previous closing of Rs.170.00 on the NSE. The scrip opened at Rs.171.60 & has touched a high & low of Rs.204.00 and Rs.168.80 respectively. So far 81,12,820 (NSE) shares were traded on the counter. The current market cap of the company is Rs.22,353.64 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.254.20 on 18-January-2018 & a 52 week low of Rs.106.75 on 24-August-2017.
LIC Housing Finance is currently trading at Rs.527.95, down by Rs.45.20 or 7.89% from its previous closing of Rs.573.15 on the NSE. The scrip opened at Rs.550.00 & has touched a high and low of Rs.550.00 & Rs.526.05 respectively. So far 1,00,02,519 (NSE) shares were traded on the counter. The current market cap of the company is Rs.26,628.54 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.689.55 on 04-September-2017 and a 52 week low of Rs.455.40 on 04-July-2018.
At Niveza India Pvt Ltd., we all come to work everyday to take the challenges of stock market head on and to change people's perception that stock market investment is like a gamble. Over the years, we have built our profile as a company which has brought optimum value to our subscribers through our well-researched stock recommendations.... More>>
Disclaimer: Niveza does not guarantee the accuracy or completeness of information on the site, nor does Niveza assume any liability for any loss that may result from reliance upon any such information or recommendations. Information and recommendations on the site are for general information only. Nothing contained herein is an offer to sell nor solicitation to buy any securities.