Political Uncertainty & Crude Oil Prices Play The Show Spoiler

weekly market commentary

Our Analysis

This week market witnessed selling pressure from 10,900 levels as investors took this opportunity to book some profit due to domestic & global political uncertainty. Also indias retail & wholesale inflation rise for the first time in four months due to higher crude oil prices & fall of Rupee against Dollar which left RBI MPC for hawkish commentary & also can expect a rise of interest rate sooner or later. earnings remained mix as Bajaj Finance, Bajaj Finserv, Hindustan Unilever reported steller numbers while most of the PSU banks disappointed with numbers. Going forward political stability & crude oil prices with earnings will remain event to look.

This Weeks Market Highlights:

Benchmark Indices:

1. The benchmark indices started the week on a quiet note as Sensex & Nifty closed flat, ahead of Karnataka election result.

2. Banking & financial, Pharma stocks supported the market while Realty & Auto closed in red. Nifty midcap was down over 1.3%.

3. On Tuesday market started on a good note but closed lower as BJP fell short of the majority in Karnataka despite emerging as single largest party.

4. Nifty Realty & PSU Bank index tumbled over 2% while IT, metal & private banks supported the market. Nifty midcap index was down 179 points.

5. On Wednesday equity indices closed lower as Sensex fell over 150 points while Nifty closed below 10,750, amid uncertainty over Karnataka Govt. formation.

6. On Thursday market extended losses as Sensex dipped over 250 points while Nifty below 10,700 as Brent crude oil prices rises to $80/Bbl.

7. On Friday market opened lower & continued to trade under selling pressure.

Sectoral Index:

- This week also story for midcap & smallcap stocks remained same as selling pressure continued despite some good earnings growth as investors still thinks that stocks are still marginally overvalued. On sectoral index almost all index traded under selling pressure.

- This week global market also remained under pressure as Crude oil prices rises to $80/Bbl & uncertainty over sanctions of U.S. on Iran as EU nations united against U.S. regarding the issue.

Movers & Shakers

Consumer lender Bajaj Finance Ltd reported a 61% surge at Rs.721 crore in its net profit for the Q4, beating Street estimates by a mile and even bucking a seasonally expected slower final quarter. The non-banking financial company is confident its housing loan subsidiary would deliver high double-digit growth rates despite the intense competition in the market. Shares of the company surged over 15% this week as investors cheered the growth.

Shares of Adani group firm Adani Transmission dipped over 20% this week despite company posted 58% jump in profit to Rs.150.70 crore but revenue fall slightly to 3% at Rs.810 crore. The company's board also approved a proposal to raise up to Rs.5,000 crore through various instruments including issuance of equity shares and convertible bonds through QIP.

Key Market Drivers

In Karnataka the drama continue as BS Yeddyurappa and the BJP have been invited to form the government in Karnataka. They will have up to fifteen days from when he takes office to prove his majority in a floor test, said Governor of Karnataka. As asked by Governor BJP candidate BS Yeddyurappa took oath today morning. The Congress has moved the Supreme Court against Karnataka Governor Vajubhai Vala's decision to invite BJPs Yeddyurappa to form the government in the state and sought an immediate hearing.

Retail and wholesale prices in India rose in April giving the monetary policy committee more reason to consider a hawkish stance at its meeting next month. CPI stood at 4.58% while WPI stood at 3.18% in April, overturning a three month slide from its peak, according to data released by the Central Statistics Office. Also Indias trade deficit widened to $13.72 billion in April.

Event Watch

India M3 Money Supply will be on 23rd May 2018. Monetary aggregates, known also as "money supply", is the quantity of currency available within the economy to purchase goods and services.

Q4FY18- Tata Motors, HPCL, IOC, SBI, GAIL, Colgate, Bank of Baroda, NCC, Sun Pharma, Tech Mahindra, PC Jewellers, India Cement, United Spirits, Cummins, Grasim, Godrej Industries, Motherson sumi, KPIT Tech.

Global:- FOMC minutes will be on 23rd May 2018. US Manufacturing PMI & Services PMI will be on 23rd May 2018. Also GBPs GDP (QoQ & YoY)will be on 25th May 2018.

Stocks To Watch

Bajaj Finserv is on the upside while Punjab National Bank is on the downside.

Share Market News 17-May-2018

Sensex, Nifty Extend Losses For 3rd Day As Oil Tops $80/Bbl

The Benchmark indices rebound after the confirmation of BJP Govt. with Sensex rose 110 points & Nifty above 10,750. The equity market turned negative as Sensex was down 100 points while Nifty fell below 10,750 as investor digested Karnataka election outcome. Most of the sectoral index traded under pressure led by Metal, Banking & Financials while Auto & IT supported the market. Nifty midcap index outperformed frontliners, traded in green.

In afternoon session market continued to trade lower as Sensex fell over 100 points while Nifty struggled below 10,750 as Brent crude oil prices inched towards $80/ barrel. Nifty Auto, Pharma, IT & PSU bank traded in green while Metal, Pvt. bank & FMCG in red. Nifty midcap index rose .30%.

In last hour of trade market continued to trade lower as Sensex fell over 100 points while Nifty hold on to 10,700 mark. The market extended losses for 2nd straight session, amid high Brent crude oil prices. All the sectoral index traded under pressure led by FMCG, Metal & Banks while Nifty midcap outperformed frontliners, rose 70 points. Sensex closed 238.76 points down at 35,149.12, Nifty down by 58.40 points at 10,682.70.

Top Gainers

Bajaj Finance by 7.71% to Rs.2,067.95, Bajaj Finserv by 4.49% to Rs.5,558, Coal India by 2.98% to Rs.271.35, Sun Pharma by 2.77% to Rs.484.75, Infratel by 1.52% to Rs.320.00.

Top Losers

Hindalco by -3.15% to Rs.232.20, UPL by -2.58% to Rs.707.10, ITC by -3.15% to Rs.279.10, Axis Bank by -2.32% to Rs.537.35, HDFC by -2.01% to Rs.1,574.

Analysis Of Top Gainer And Loser

Bajaj Finance is the top gainer in today's market as company posted best quarterly result in over 6 years as profit grew by 60%, beat analyst estimates.

Hindalco is the top loser in today's market as company reported a 25% drop in its standalone quarterly profit in January-March 2018 quarter.

Key Market News

In Karnataka the drama continue as BS Yeddyurappa and the BJP have been invited to form the government in Karnataka. They will have up to fifteen days from when he takes office to prove his majority in a floor test, said Governor of Karnataka. As asked by Governor BJP candidate BS Yeddyurappa took oath today morning. The Congress has moved the Supreme Court against Karnataka Governor Vajubhai Vala's decision to invite BJPs Yeddyurappa to form the government in the state and sought an immediate hearing.

For the first time since inception, the Reserve Bank of Indias Monetary Policy Committee (MPC) will meet for three days in June for the second bi-monthly policy review instead of the usual two days. The RBI said the change in schedule is due to "administrative" reasons. The six members of the MPC led by RBI Governor Urjit Patel will meet on June 4, 5 and 6. Analysts and experts suggest there is a high probability of a repo rate hike in the June policy due to the spike in inflation to 4.6 percent in April and worries of high crude prices.

Stocks To Watch

Jyothy Laboratories Ltd. is on the upside while PTC India Ltd. is on the downside.

Jyothy Lab. is currently trading at Rs.471.05, up by Rs.78.50 or 20% from its previous closing of Rs.392.55 on the NSE. The scrip opened at Rs.400.00 & has touched a high & low of Rs.471.05 and Rs.399.50 respectively. So far 35,75,837 (NSE) shares were traded on the counter. The current market cap of the company is Rs.8,544.32 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.471.05 on 17-May-2018 & a 52 week low of Rs.324.50 on 16-November-2017.

PTC India is currently trading at Rs.83.60, down by Rs.8.35 or 9.08% from its previous closing of Rs.91.95 on the NSE. The scrip opened at Rs.92.65 & has touched a high and low of Rs.93.50 & Rs.82.60 respectively. So far 1,41,74,043 (NSE) shares were traded on the counter. The current market cap of the company is Rs.2,473.15 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.130.45 on 21-September-2017 and a 52 week low of Rs.82.60 on 17-May-2018.

Share Market News 16-May-2018

Sensex, Nifty Extend Losses On Mixed Earnings, Karnataka Uncertainty

The Benchmark indices opened sharply lower with Sensex down over 150 points & Nifty below 10,750, amid weak Asian cues. The equity market continued to trade lower as Sensex was down over 200 points while Nifty traded below 10,750, amid uncertainty over Karnataka Govt. formation. Baring FMCG & Realty all the sectoral index remained under pressure led by Bank & Financials and metal. Nifty midcap index trimmed losses to half a percent.

In afternoon session market recovered from days low as Sensex was down 50 points while Nifty back above 10,750 helped by recovery in Rupee & fall in crude oil prices. Nifty FMCG & Realty index is up over 1% while all other index traded in red. Nifty midcap turned in green.

In last hour of trade market further extended losses as Sensex slipped nearly 200 points while Nifty below 10,750. The market closed lower as uncertainty remained over the formation of Govt. in Karnataka. Nifty Realty & FMCG rose over 1% while PSU bank fell over 3% followed by financials & Pvt. banks as well. Nifty midcap down 14 points. Sensex closed 156.06 points down at 35,387.88, Nifty down by 60.75 points at 10,741.10.

Top Gainers

HUL by 3.87% to Rs.1,574.15, Lupin by 2.26% to Rs.767.75, ITC by 1.60% to Rs.286.35, Bajaj Finance by 1.42% to Rs.1,929, Wipro by 1.37% to Rs.274.70.

Top Losers

ICICI Bank by -3.67% to Rs.296.95, Cipla by -3.40% to Rs.556.20, Ultratech by -3.15% to Rs.3,980, RIL by -2.51% to Rs.954.40, GAIL by -2.37% to Rs.331.40.

Analysis Of Top Gainer And Loser

Hindustan Unilever is the top gainer in today's market as company posted strong numbers for Q4 FY18 as PAT grew by 1.2% beat street expectations.

ICICI Bank is the top loser in today's market as banking sector remained under selling pressure due to lower then expected numbers

Key Market News

Japan's economy shrank for the first time in two years in the first quarter of the year amid weak consumption, official data showed. The world's third-largest economy contracted by 0.2% quarter-on-quarter in the January-March period, compared with growth of 0.1% at the end of 2017, the Cabinet Office said. Private consumption was flat after an uptick of 0.2% in the final quarter of last year. Private residential investment plunged another 2.1% after a 2.7% fall in the previous quarter.

Indias trade deficit widened to $13.72 billion in April. This is $47 million higher than the $13.25- billion trade deficit reported in April 2017, according to data put out by the Ministry of Commerce. The higher deficit is on account of the near doubling of crude oil prices. However, the deficit was mitigated by lower gold and jewellery imports. In rupee terms, the trade balance widened by 4,564.98 crore in April to Rs.90,031.71 crore, from Rs.85,466.73 crore in April last year. An official statement said, Oil imports during April were valued at $10.41 billion which was 41.49% higher than oil imports valued at $7.36 billion in April 2017.

Stocks To Watch

Indiabulls Real Estate Ltd. is on the upside while Punjab National bank is on the downside.

IB Real Estate is currently trading at Rs.207.90, up by Rs.22.10 or 11.89% from its previous closing of Rs.185.80 on the NSE. The scrip opened at Rs.191.30 & has touched a high & low of Rs.209.80 and Rs.191.30 respectively. So far 2,76,88,556 (NSE) shares were traded on the counter. The current market cap of the company is Rs.9,911.20 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.269.70 on 07-August-2017 & a 52 week low of Rs.151.10 on 24-May-2017.

PNB is currently trading at Rs.75.70, down by Rs.10.25 or 11.93% from its previous closing of Rs.85.95 on the NSE. The scrip opened at Rs.79.15 & has touched a high and low of Rs.80 & Rs.74.15 respectively. So far 9,85,23,673 (NSE) shares were traded on the counter. The current market cap of the company is Rs.20,856.13 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.74.15 on 16-May-2018.

Share Market News 15-May-2018

Karnataka Cliffhanger Scares The Market; Nifty Hold 10,800

The Benchmark indices started flat as Sensex was up 10 points & Nifty tested 10,800, as Karnataka vote counting started. The equity market continued to trade positively as Sensex surged over 350 points while Nifty was above 10,900 as BJP emerged as the biggest single party in Karnataka. Nifty Bank index rose over 350 points while Pharma, IT and FMCG indices turned flat. Nifty midcap rose 0.50%.

In the afternoon session, the market was off days high as investors booked profit at the higher level. Sensex was up over 200 points while Nifty was above 10,850. Later, Nifty midcap turned negative, was down over 0.50%. Nifty Realty, Pharma & PSU bank index fell over 1% while private banks, NBFCs, IT & metal supported the market.

In the last hour of trade, the market was flat as Sensex was up 50 points while Nifty traded above 10,800. The market ended flat after it became clear that BJP was likely to fail to reach the halfway mark in Karnataka. Nifty Realty & PSU Bank index tumbled over 2% while IT, metal & private banks supported the market. Nifty midcap index was down 179 points. Sensex closed 12.77 points down at 35,543.94, Nifty was down by 4.75 points at 10,801.85.

Top Gainers

Tata Steel by 2.73% to Rs.627, Power Grid by 2.37% to Rs.214, Bajaj Finance by 1.90% to Rs.1,900, TCS by 1.56% to Rs.3,487, Asian Paint by 1.28% to Rs.1,314.

Top Losers

Tata Motors by -3.99% to Rs.310.70, SBIN by -2.78% to Rs.246.55, Coal India by -2.24% to Rs.264, IndusInd Bank by -1.39% to Rs.1,199.75, NTPC by -1.08% to Rs.169.80.

Analysis Of Top Gainer And Loser

Tata Steel is the top gainer in today's market as Analyst expect a turnaround in this quarter. Company Q4 result is due tomorrow.

Tata Motors is the top loser in today's market as selling pressure was seen in the stock.

Key Market News

Indias retail inflation came in at 4.58% in April from Marchs 4.28% due to rise in prices of miscellaneous items such as education, household goods, personal care items as well as petrol and diesel prices, data released by statistics office showed. Retail inflation, measured by Consumer Price Index (CPI) had fallen to 2.99% in April 2017. CPI is the main price measure that the Reserve Bank of India (RBI) tracks. Marchs data is an indication that prices are at a relatively safe distance from the apex banks upper tolerance level of inflation at 6%.

MSCI, the worlds biggest index compiler with roughly $12 trillion in assets benchmarked to its products, will add four Indian stocks and remove five from its Global Standard Index with effect at May 31 close.

New Additions: Avenue Supermart, InterGlobe Aviation, Pidilite Industries and Power Grid Corporation of India.

Deletions: ACC, IDFC Bank, PFC, Tata Motors DVR and Vakrangee.

MSCI also released the list of 234 domestically listed Chinese companies that will be added to benchmark equity from next month. The move is expected to trigger potential outflow from markets like India.

Share Market News 14-May-2018

Market Flat Ahead Of Karnataka Poll Outcome, Nifty Holds 10,800

The Benchmark indices started the week on a quiet note with Sensex was up 30 points & Nifty above 10,800 . The equity market is off days high as Sensex was down 10 points while still above 10,800, ahead of Karnataka Election result. Among sectoral index IT, Auto & Realty traded under pressure while Pharma & PSU Bank index rose 1%. Nifty midcap to traded lower nearly 1%.

In afternoon session some weakness seen in D-Street as Senxes fell over 50 points while Nifty fell below 10,800, ahead of Karnataka election result. Midcaps have further extended their fall, pharma and PSU banks have trimmed some of the gains. Auto stocks too continued to trade lower.

In last hour of trade market traded volatile as Sensex was up 10 points while Nifty traded above 10,800. The market ended flat as traders maintained cautious ahead of Karnataka result. Banking & financial, Pharma stocks supported the market while Realty & Auto traded under pressure. Nifty midcap was down over 1.3% Sensex closed 20.92 points up at 35,556.71, Nifty up by 0.10 points at 10,806.60.

Top Gainers

NTPC by 2.24% to Rs.171.20, BPCL by 1.30% to Rs.404.50, IndusInd Bank by 1.25% to Rs.1,918, Dr. Reddy by 1.23% to Rs.2,015, Power Grid by 1.04% to Rs.209.00.

Top Losers

Titan by -3.49% to Rs.922.65, ZEEL by -2.75% to Rs.576.50, Tata Motors by -2.21% to Rs.323.50, M&M by -2.19% to Rs.850.05, Infratel by -2.05% to Rs.313.30.

Analysis Of Top Gainer And Loser

NTPC is the top gainer in today's market as buying was seen in the stock on the back of a heavy volume.

Titan is the top loser in today's market as selling pressure was seen in the stock despite strong Q4 numbers.

Key Market News

Inflation based on wholesale prices shot up to 3.18% in April on increasing prices of petrol and diesel as well as fruits and vegetables. The Wholesale Price Index based inflation stood at 2.47% in March and 3.85% in April last year. According to govt. data released, inflation in food articles was at 0.87% in April 2018, as against a deflation of 0.29% in the preceding month. Deflation in vegetables was 0.89% in April, while in the previous month it was 2.70%. Inflation in fuel and power basket rose sharply to 7.85% in April from 4.70% in March as prices of domestic fuel increased in line with rising global crude oil rates.

Despite moderation in factory output growth in March, India's GDP is expected to grow by 7.7% in January-March, up from 7.2% in the preceding quarter, says a Nomura report. According to the Japanese financial services major, despite the moderation in March, industrial production growth averaged 6.2% in the January- March period, up from 5.9% in Q4 (October-December). The report further noted that India is expected to witness cyclical recovery led by both investment and consumption.

Stocks To Watch

Sun TV Network Ltd. is on the upside while Tata Global Beverages Ltd. is on the downside.

Sun TV is currently trading at Rs.959.90, up by Rs.91.40 or 10.52% from its previous closing of Rs.868.50 on the NSE. The scrip opened at Rs.905.00 & has touched a high & low of Rs.977.80 and Rs.901.65 respectively. So far 1,10,10,934 (NSE) shares were traded on the counter. The current market cap of the company is Rs.37,991.73 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.1,097.80 on 16-January-2018 & a 52 week low of Rs.652.45 on 10-August-2017.

Tata Global is currently trading at Rs.257.00, down by Rs.30.50 or 10.61% from its previous closing of Rs.287.50 on the NSE. The scrip opened at Rs.280.00 & has touched a high and low of Rs.281.35 & Rs.251.85 respectively. So far 1,68,22,847 (NSE) shares were traded on the counter. The current market cap of the company is Rs.16,112.74 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.328.75 on 15-January-2018 and a 52 week low of Rs.140.20 on 24-May-2017.

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

 

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

Multibagger Penny Stocks: Risky Or Rewarding

The usual trap where every newbie investor gets trapped is multibagger penny stocks. These stocks trade at the most discounted prices. That's why investors initially fell in love with these stocks as prima facie these stocks seemed to be the hi
Read More>>

Free Share Market Tips Today: Stop & Read Before You Invest In Stocks

Various popular stock market news portals and TV channels discuss trending stocks and provide free share market tips based on technical charts and often without in-depth research. Our research desk analyses these trending stock market tips and pro
Read More>>

Share Market News: Today’s Nifty & Sensex Updates

Share Market News 21st-February-2019
Read More>>

Volatility Ahead, Stick To The Fundamentally Strong Stocks

Our Analysis This week even after the RBI's rate cut announcement the market changed its outlook from bullish to the corrective phase. The market corrected for the fifth consecutive day
Read More>>

What is Multibagger Stocks?

What is a multibagger stock? A stock which can give you manyfold returns. Yes, that's true. Multibagger stocks are defined in a similar manner. The legendary investor Peter Lynch has termed Multibagger stocks in his book One Up On Wall
Read More>>