Rupee – The Worst Performing Currency In Asia

Tide of Volatility Continues ahead of RBI MPC outcome

Our Analysis

This week market breached important support level of 10,600 but was able to rebound due to short covering that happened on Friday.

Global market selloff, rupee depreciation against dollar & rise in crude oil prices due to production disruption were the factors responsible to hurt the sentiment in the domestic market. Baring IT all indices traded under pressure. The market is expected to remain weak due to global trade war tension but IT will be benefited from the rupee weakness. Rupee fall can force RBI to hike rate in August

The global markets will be closely watching the developments in oil price & trade war tensionst.

The market is expected to remain volatile at least till the next month.

This Weeks Market Highlights:

Benchmark Indices:

1. The benchmark indices began the week on a lower note as Sensex fell 219 points while Nifty was below 10,800.

2. Nifty auto, banking & financials dragged the market while IT, pharma & metal prevented the steep fall. Nifty midcap index gave up all gains, fell 20 points.

3. On Tuesday, the market closed flat amid consolidation as Sensex rose 20 points while Nifty held 10,750 supported by IT & FMCG space.

4. On Wednesday, equity indices ended sharply lower as Sensex dipped 273 points & Nifty slipped below 10,700, amid weakness in global peers.

5. On Thursday, the market closed sharply lower on F&O expiry day as Sensex fell 180 points while Nifty closed below 10,600 as the rupee hit the all-time low.

6. Baring metal all the sectoral indices closed in red dragged by banking & financial, realty, pharma, IT, auto & FMCG. Nifty Midcap index closed 1.85% lower.

7. On Friday, the market started July series on a positive note despite mix Asian cues.

Sectoral Index:

- Broader market continued to underperform the market as Nifty midcap index fell over 5% this week due to global selloff & rupee depreciation. On the sectoral space, only IT index performed this week while all other indices corrected due to weakness in global markets & rise in crude oil prices.

- Global markets also felt the pressure of the ongoing trade war tensions between US & China. Also, the US threat to not buy oil from Iran has hurt sentiment in two oil-producing countries. So Crude oil price, tariff trade war situation will be the key issues to watch in coming times.

Movers & Shakers

Shares of NDTV surged over 50% this week amid market regulator Sebi ordering Vishva Pradhan Commercial to make an open offer for the company. The Bombay High Court order directing the RBI to consider the compounding applications filed by NDTV in a case of alleged violation of Foreign Exchange Management Act (FEMA) also boosted the stock.

The share of oil marketing company HPCL dipped over 15% this week after crude oil prices jumped over $77 a barrel. The rise in crude oil prices is always a concern for PSU oil marketing companies as these firms cannot pass any increase in price immediately. Concerns like supply disruptions in Libya and Canada, US officials statement saying all countries should stop Iranian crude imports from November pushed crude oil prices higher.

Key Market Drivers

The Indian rupee fell to a lifetime low in the trade as a confluence of factors ranging from a stronger dollar, to higher oil prices, a wider current account deficit and foreign portfolio outflows pushed the currency lower. The rupee fell to 69.09 in intraday trade compared to yesterday's close of 68.63. The previous all-time intraday low for the rupee is 68.86 against the dollar level hit on Nov. 24, 2016. The all-time closing low stands at 68.82, breached on Aug. 28, 2013. So far this year, the Indian currency has weakened 8.1 percent, making it the worst performer in Asia.

Oil prices continued to rise following supply disruptions in Libya and Canada and after US officials told oil importers to stop buying Iranian crude from November. The United States demanded all countries stop imports of Iranian oil from November, a State Department official said on Tuesday. Oil markets did not react very strongly to Washington's pressure as the move was expected. In addition, top exporter Saudi Arabia plans to raise output to make up for lost supplies.

Event Watch

Indias Nikkei Markit Manufacturing PMI (June) data will be on 2nd July 2018. Nikkei Services PMI (June) data will be on 4th July 2018.

Domestic Auto sales number (June) will be presented on 2nd July 2018.

Global:- US ISM Manufacturing PMI (June) data will be on 2nd July 2018. US ADP Nonfarm Employment Change & ISM Non-Manufacturing PMI (June) data will be on 5th July 2018. US Nonfarm Payrolls & Unemployment Rate (June) data will be on 6th of July 2018.

Stocks To Watch

Tata Steel Ltd. is on the upside while Clariant Chemicals Ltd. is on the downside.

Share Market News 28-June-2018


Nifty Ends June Series Below 10,600 As Rupee Down To All-Time Low

The Benchmark indices started mildly lower as Sensex shed 45 points & Nifty below 10,650 as Rupee fell to an all-time low. The equity market continued to trade lower as Sensex fell over 100 points while Nifty struggled below 10,650. All sectoral indices traded in red led by Realty, Banking & financials, and pharma as well. Nifty midcap index underperformed frontliners, was down 1%.

In the afternoon session, the market remained under selling pressure as Sensex fell 100 points while Nifty below 10,650. Weakness was dragged by Reliance, banking & financials, realty & media while metal traded in green. Nifty midcap continued to bleed in the market, was down over 1.5%.

In last hour of trade, the market extended losses as Sensex fell 200 points while Nifty slipped below 10,600. The market ended sharply lower on the F&O expiry day. Baring metal all the sectoral indices closed in red dragged by banking & financials, realty, pharma, IT, auto & FMCG. Nifty Midcap index continued to underperform benchmark indices, closed 1.85% lower. Sensex closed 179.47 points down at 35,037.64, Nifty down by 82.30 points at 10,589.10.

Top Gainers

NTPC by 1.76% to Rs.156.50, KotakBank by 1.62% to Rs.1,345.70, M&M by 1.61% to Rs.907.00, Hindalco by 1.45%to Rs.221.05, Bharti Airtel by 1.42% to Rs.381.00.

Top Losers

Tech Mahindra by -7.04% to Rs.664.00, HindPetro by -4.72% to Rs.261.15, Titan by -4.04% to Rs.834.50, IBULHSGFIN by -3.98% to Rs.1,134, BPCL by -3.68% to Rs.368.70.

Analysis Of Top Gainer And Loser

NTPC is the top gainer in today's market as some sort of a buying has been seen in the stock.

Tech Mahindra is the top loser in today's market as strong selling pressure was seen in the stock despite rupee depreciation against the dollar which cracked at the all-time low. Yesterday stock rose over 4%.

Key Market News

The Indian rupee fell to a lifetime low in the trade as a confluence of factors ranging from a stronger dollar, to higher oil prices, a wider current account deficit and foreign portfolio outflows pushed the currency lower. The rupee fell to 69.09 in intraday trade compared to yesterdays close of 68.63. The previous all-time intraday low for the rupee is 68.86 against the dollara level hit on Nov. 24, 2016. The all-time closing low stands at 68.82, breached on Aug. 28, 2013. So far this year, the Indian currency has weakened 8.1 percent, making it the worst performer in Asia.

Annual growth in Japanese retail sales slowed in May to its lowest in seven months, adding to worries about weak consumer spending that caused a first-quarter economic contraction. The 0.6 percent annual increase in retail sales in May was weaker than the median estimate for a 0.9 percent annual gain, following a revised 1.5 percent increase in April. Mays result marked the slowest growth since a 0.2 percent decline last October.

Stocks To Watch

CG Power & Industrial Solution Ltd. is on the upside while Jain Irrigation Ltd. is on the downside.

CG Power is currently trading at Rs.55.75, up by Rs.5.55 or 11.06% from its previous closing of Rs.250.0 on the NSE. The scrip opened at Rs.50.55 & has touched a high & low of Rs.56.20 and Rs.49.45 respectively. So far 3,44,45,737 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,566.69 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.99.15 on 12-January-2018 & a 52 week low of Rs.46.75 on 27-June-2018.

Jain Irrigation is currently trading at Rs.78.45, down by Rs.8.40 or 9.67% from its previous closing of Rs.86.85 on the NSE. The scrip opened at Rs.86.15 & has touched a high and low of Rs.86.25 & Rs.78.25 respectively. So far 1,57,47,355 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,963.48 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.150.40 on 29-January-2018 and a 52 week low of Rs.78.25 on 28-June-2018.

Share Market News 27-June-2018


The Market Closes At 3-Week Low Ahead Of F&O Expiry, Nifty Below 10,700

The Benchmark indices opened flat as Sensex rose 40 points & Nifty above 10,750, amid weakness in Asian peers. The equity market continued to consolidate as Sensex was down 50 points while Nifty fell below 10,750 ahead of F&O expiry. Nifty IT index rose over 1% while all other indices traded in red led by banking, metal, realty & auto. Nifty midcap index was down over 1%.

In the afternoon session, the market extended losses as Sensex fell over 200 points while Nifty breached 10,700. Except IT, which trimmed gains to half a percent, all sectoral indices traded in red led by banking, OMCs, realty, media, auto & financial. Nifty midcap underperformed the market, fell over 1.5%.

In last hour of trade market remained under selling pressure as Sensex fell 230 points while Nifty below 10,700. The market ended sharply lower amid weak global cues. Baring IT & pharma all sectoral indices closed in the red. Nifty Midcap index underperformed the market, closed 1.5% lower. Sensex closed 272.93 points down at 35,217.11, Nifty down by 97.75 points at 10,671.40.

Top Gainers

Tech Mahindra by 4.12% to Rs.716.20, Infratel by 2.41% to Rs.300.00, HCL Tech by 1.27% to Rs.922.00, HDFC Bank by 1.01%to Rs.2,114.90, Cipla by 1.00% to Rs.605.50.

Top Losers

BPCL by -8.33% to Rs.380.65, HindPetro by -7.87% to Rs.275.55, IOC by -6.83% to Rs.155.40, GAIL by -4.61% to Rs.326.00, UPL by -3.41% to Rs.618.00.

Analysis Of Top Gainer And Loser

Tech Mahindra is the top gainer in today's market as Dollar's strong performance in the past two weeks may have made the Indian Rupee weaker, but amid escalating trade and tariff-based concerns, this strengthening is a sunshine for the Indian technology industry.

BPCL is the top loser in today's market as oil prices continued to rise as the US pressed its allies to end all imports of Iranian oil by a November deadline and said it didnt want to offer any extensions.

Key Market News

Profits at China's industrial firms rose sharply in May, maintaining the previous month's sizzling pace despite signs of slowing momentum in the world's second-largest economy and an intensifying trade spat with the United States. Beijing is trying to walk a tightrope between supporting economic growth and tamping down financial risks, with policymakers freeing up more funds for lending by cutting required reserve levels for banks twice since April. The latest cut came on Sunday as authorities moved fast to temper any potential drag on growth from the heated Sino-US trade dispute.

Oil prices rose on Wednesday following supply disruptions in Libya and Canada and after US officials told oil importers to stop buying Iranian crude from November. The United States demanded all countries stop imports of Iranian oil from November, a State Department official said on Tuesday. Oil markets did not react more strongly to Washington's pressure as the move was expected. In addition, top exporter Saudi Arabia plans to raise output to make up for lost supplies.

Stocks To Watch

EID Parry India Ltd. is on the upside while NBCC Ltd. is on the downside.

EID Parry is currently trading at Rs.218.60, up by Rs.13.05 or 6.35% from its previous closing of Rs.205.55 on the NSE. The scrip opened at Rs.206.10 & has touched a high & low of Rs.227.80 and Rs.206.10 respectively. So far 10,20,558 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,900.08 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.392.00 on 05-January-2018 & a 52 week low of Rs.204.10 on 26-June-2018.

NBCC is currently trading at Rs.72.65, down by Rs.7.25 or 9.07% from its previous closing of Rs.79.90 on the NSE. The scrip opened at Rs.80.50 & has touched a high and low of Rs.80.50 & Rs.71.95 respectively. So far 1,13,76,776 (NSE) shares were traded on the counter. The current market cap of the company is Rs.13,284 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.291.30 on 08-November-2017 and a 52 week low of Rs.71.95 on 27-June-2018.

Share Market News 26-June-2018


Market Scrape Gains At The End Of A Volatile Session; Nifty Above 10,750

The Benchmark indices started on a negative note as Sensex slipped 100 points & Nifty below 10,750, amid trade war tension. The equity market traded higher as Sensex rose nearly 100 points while Nifty near 10,800. Except for Auto & Pharma all sectoral indices traded in green led by FMCG & HDFC. Nifty midcap index underperformed frontliners, was down 20 points.

In the afternoon session, the market erased all its gain & traded flat as Sensex was up 15 points while Nifty held 10,750. Nifty FMCG, IT & Media supported the market while metal, auto, realty capped the gains. Nifty midcap index continued to underperform frontline indices, was down 0.30%.

In last hour of trade, the market traded mildly higher as Sensex rose 120 points while Nifty near 10,800. The market closed flat after consolidation. Nifty FMCG, IT space supported the market while Reliance, auto & realty capped the market gains. Nifty Midcap index underperformed the market, was down 39 points. Sensex closed 19.69 points up at 35,490.04, Nifty up by 6.70 points at 10,769.15.

Top Gainers

Grasim by 2.93% to Rs.1,036, Coal India by 2.36% to Rs.265.10, Ultratech Cement by 2.21% to Rs.3,835, Hindalco by 2.15%to Rs.223.10, Asian Paints by 2.02% to Rs.1,278.75.

Top Losers

Tata Motors by -4.44% to Rs.276.55, Reliance by -2.63% to Rs.978.00, Cipla by -1.89% to Rs.599.85, Tata Steel by -1.83% to Rs.548.40, Bajaj Finserv by -1.65% to Rs.6,064.15.

Analysis Of Top Gainer And Loser

Grasim is the top gainer in today's market as strong buying was seen in the stock. Cement sector has underperformed market last year.

Tata Motors is the top loser in today's market despite company's strong investment in JLR for Rs.1.2 lakh in next three years.

Key Market News

As many as 41.26 lakh new jobs were created in the eight months between September 2017 and April 2018, with the largest-ever addition of 6.85 lakh in April alone as per the payroll data from the EPFO (Employees' Provident Fund Organisation), says Central Statistics Office (CSO). EPFO's data showed that April payroll number was the highest in the last eight months, indicating higher jobs creations than preceding 7 months. In the month of April, the maximum new payrolls of 1.87 lakh were recorded in the age bracket of 18 to 21 years followed by 1.80 lakh in 22 to 25 years bracket.

Prime Minister Narendra Modi on Tuesday pitched for greater long-term investment from multilateral development lender Asian Infrastructure Investment Bank (AIIB), spelt out Indias sound macroeconomic fundamentals and investor-friendly rules and regulations for businesses. He called upon the Beijing-headquartered bank to quadruple its financing to reach $40 billion by 2020 and escalate it 25 times to $100 billion by 2025. AIIB has already committed to invest in seven projects worth USD 1.4 billion towards infrastructure projects in India.

Stocks To Watch

Avanti Feeds Ltd. is on the upside while IDBI Bank Ltd. is on the downside.

Avanti Feeds is currently trading at Rs.599.00, up by Rs.77.90 or 14.95% from its previous closing of Rs.1,563.35 on the NSE. The scrip opened at Rs.538.00 & has touched a high & low of Rs.625.30 and Rs.535.95 respectively. So far 45,46,290 (NSE) shares were traded on the counter. The current market cap of the company is Rs.8,242.18 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.980.00 on 13-November-2017 & a 52 week low of Rs.411.67 on 05-June-2018.

IDBI Bank is currently trading at Rs.54.45, down by Rs.3.55 or 6.12% from its previous closing of Rs.58.00 on the NSE. The scrip opened at Rs.58.45 & has touched a high and low of Rs.58.45 & Rs.53.75 respectively. So far 2,07,23,625 (NSE) shares were traded on the counter. The current market cap of the company is Rs.22,787.48 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.91.50 on 05-March-2018 and a 52 week low of Rs.50.20 on 14-August-2017.

Share Market News 25-June-2018

Market Slide As Caution Prevails In F&O Expiry Week; Nifty Below 10,800

The Benchmark indices began the week on a flat note as Sensex down 20 points & Nifty hold 10,800. The equity market traded lower as Sensex fell 70 points while Nifty traded above 10,800. Nifty auto, banking & financials dragged the market while IT, pharma & metal prevented the market from further losses. The nifty midcap index gave up all the gains, was down 20 points.

In the afternoon session, the market corrected further as Sensex fell over 100 points while Nifty tested the 10,800 level. Nifty auto, PSU bank fell over 1% followed by realty & media also metal erased gains while IT & pharma continued to outperform the market. Nifty midcap index still traded in green territory.

In last hour of trade, the market extended losses as Sensex dipped 190 points while Nifty struggled below 10,800. The market ended at days low. Baring IT space, all other sectoral indices closed lower with 0.4% to 2% cut. Nifty Midcap index also fell in line with frontliners, was down 101 points. Sensex closed 219.25 points down at 35,470.35, Nifty down by 59.40 points at 10,762.45.

Top Gainers

ULTRACEMCO by 2.65% to Rs.3,737.55, Bajaj Finance by 2.10% to Rs.2,385.05, Infosys by 1.75% to Rs.1,269.70, Infratel by 1.66%to Rs.290.75, Lupin by 1.34% to Rs.915.00.

Top Losers

Tata Motors by -6.31% to Rs.288.55, HindPetro by -3.99% to Rs.298.75, ICICI Bank by -3.64% to Rs.289.70, BPCL by -3.37% to Rs.412.00, Coal India by -2.78% to Rs.257.50.

Analysis Of Top Gainer And Loser

Ultratech Cement is the top gainer in today's market as the news said that Binani Cements acquisition can make Ultratech market leader in North India.

Tata Motors is the top loser in today's market as caution gripped investors due to auto tariff threat by the US as well as weak JLR trends as well.

Key Market News

Brent crude oil prices continued to fall as traders factored in an expected output increase that was agreed at the headquarters of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna on Friday. OPEC and non-OPEC partners including Russia have since 2017 cut output by 1.8 million barrels per day (bpd) to tighten the market and prop up prices. Several ministers suggested that (rises) would correspond to a 0.7 million bpd increase in production," said US bank Goldman Sachs following the announcement of the agreement, although it added that were risks "that Iran production may be even lower than we assume" and that its output could fall further due to looming US sanctions.

The Monsoon session of Parliament would be held from July 18 to August 10. It will comprise 18 working days, reported ANI. Several amendments to the Goods and Services Tax law are likely to be placed before Parliament in the Monsoon Session, a senior official said today in Kolkata. There are several amendments to the GST which is proposed to come up during the Monsoon Session of Parliament, GST Council Special Secretary Arun Goyal said at a seminar organised by the Merchants Chamber of Commerce.

Stocks To Watch

PNB Housing Finance Ltd. is on the upside while KRBL Ltd. is on the downside.

PNB Housing is currently trading at Rs.1,225, up by Rs.152.45 or 14.21% from its previous closing of Rs.1,072.55 on the NSE. The scrip opened at Rs.1,111 & has touched a high & low of Rs.1,244 and Rs.1,105 respectively. So far 36,96,280 (NSE) shares were traded on the counter. The current market cap of the company is Rs.20,484.03 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.1,717.65 on 30-August-2017 & a 52 week low of Rs.1,051 on 22-June-2018.

KRBL is currently trading at Rs.374.95, down by Rs.93.70 or 19.99% from its previous closing of Rs.468.65 on the NSE. The scrip opened at Rs.468.55 & has touched a high and low of Rs.468.55 & Rs.374.95 respectively. So far 56,28,769 (NSE) shares were traded on the counter. The current market cap of the company is Rs.8,797.70 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.675.00 on 02-November-2017 and a 52 week low of Rs.371.15 on 30-June-2017.

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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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