Profit Bookings And Earnings To Cook The Perfect Return Recipe

weekly share market news and updates

Our Analysis

The first week of the financial year 2019-20 will be a landmark in Indian share markets as Sensex hit an all-time high on its 40th birth anniversary by breaching the 39,000 mark. The Nifty kept the pace ahead and didnt disappoint investors by registering an all-time high on 3rd April. The optimism on D-street was fuelled by the core sector, Which showed stronger growth in February at 2.1 percent Vs 1.5 percent in January, Also the government recorded the highest GST collection in the last month of the fiscal 2018-19 at Rs 1.06 trillion. However, after making the top, benchmark indices drifted in the negative territory with Skymet report concerns, the private weather forecaster which estimated that monsoon could be below average due to the El Nino effect.

In the aftermath of weekly expiry and RBI Monetary meet the market witnessed high volatility and profit booking from a higher level which finished the indices below 11,600 Mark. The MPC decided to reduce the policy rate by 25 bps to 6 percent, A key takeaway from the policy is the projection of benign inflation for FY2020. Since the GDP growth rate for FY2020 has been lowered in this benign inflation scenario, one can expect more rate hikes this year. The stance has been maintained at neutral perhaps in the context of the rising crude price and concerns regarding a below normal monsoon.

Going ahead in the coming week the center of attention would be the Q4FY18-19 earnings and the Mega event, General election. The first phase of the polls will be held on April 11 and the polling will go on in phases till the conclusion of the final phase on May 23.

This Weeks Market Highlights:

Benchmark Indices:

1) On Monday, Indian share market ended higher but off day's high on the back of last hour selling pressure on the first day of the financial year 2020. The Sensex breached a record high of 39,115.57 during the day, while Nifty also finished above 11,650 level.

2) Among Sector compiled by NSE advanced, led by the Nifty realty indexs 0.87 percent fall. While, the Nifty Metal Index was the top sectoral gainer, up 1.84 percent.

3) On Tuesday, Indian share market ended higher for the fourth consecutive day, the Sensex was up 184.78 points at 39056.65, while Nifty was up 44 points at 11713.20.

4) Among Sector compiled by NSE advanced, led by the Nifty Realty Indexs 2.3 percent rally. While, the Nifty Media Index was the top sectoral loser, down 0.87 percent.

5) On Wednesday, the Sensex was down 179.53 points at 38877.12, while Nifty was down 69.20 points at 11,644. All the sectoral compiled by NSE fell, led by the Nifty PSU Bank Indexs 2.7 percent decline.

6) On Thursday, the Sensex was down 192.40 points at 38,684.72, while Nifty was down 46 points at 11,598. Among sector compiled by NSE fell, led by the Nifty IT Indexs 1.37 percent decline. While, the Nifty Media Index was the top sectoral gainer, up 1.09 percent.

7) On Friday, Indian equity benchmarks opened higher after declining for two consecutive trading sessions.

Broader Index & Global Market:

- Globally, Concerns over the economic slowdown cooled off as China reported a strong reading of official PMI. Consumer sentiment and manufacturing output in US rose in March, which will revive investors itch for riskier assets. Also, The US-China trade talk on the final stage, Which kept the sentiment in an upbeat.

- In the broader market, We have witnessed some weakness, Companies with the sound fundamentals had witnessed up move otherwise it was a dull week for Mid & Small-cap.

Movers & Shakers

Shares of Indiabulls Housing Finance Ltd. surged nearly 6 percent in a week, After the company in a regulatory filing stated, it has raised Rs 17,300 crore in the March quarter of 2018-19. The company has planned to borrow Rs 26,000 crore in the current financial year.

Shares of Amara Raja Batteries Ltd (ARBL) dropped nearly 7 per cent in a week, After the company said in the statement that "Amara Raja Batteries has informed the exchange regarding the termination of shareholders agreement between Galla Family and Johnson Controls (JC) and consequent termination of alternative agreements entered by the Company with JC,"

Key Market Drivers

  • India's current account deficit (CAD) came in at USD16.9b (2.5% of GDP) in 3QFY19 as against USD13.7b (2.1% of GDP) in the year-ago quarter.
  • RBI modified the revelation on material divergences on provisioning, saying the bank will have to disclose their provisions if the divergence is more than 10% of the banks PBT compared to 15% of PAT earlier.
  • Output growth of eight core industries Recorded at 2.1% in February 2019.
  • Goods and Services Tax (GST) collection has recorded Rs 11.77 trillion in fiscal 2018-19, with the record realization of Rs 1.06 trillion in March alone.
  • Indias manufacturing PMI loses growth momentum; eases to 52.6 in March.
  • Skymet says India monsoon rains are expecting below normal this year.
  • RBI Committee on Thursday decided to cut its benchmark interest rate. The committee cut the repo rate by 25 basis points to 6 percent.
  • The Nikkei India Services Business Activity Index fell to 52 last month from 52.5 in February.

Event Watch

International:

  • Japan BoP Curr Acc Bal
  • US CPI YoY
  • China CPI YoY
  • China Trade Balance
  • Crude Price movement

Domestic:

  • India CPI YoY
  • India Industrial Prod YoY
  • Infosys, TCS Results

Stocks To Watch

HDFC, INFY On Upside while DABUR & BIOCON on Downside.

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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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