Good Earnings Send Nifty To All-Time High But Uncertainty Continues
Jul 27, 2018 | 16:07 PM IST
Jul 27, 2018 | 16:07 PM IST
Our Analysis
Bulls took charge this week in D-Street as both indices hit fresh all-time high as Sensex crossed 37K & Nifty 11,200 mark for the first time on the back of strong quarterly earnings by big players especially ITC, Airtel along with some strong expectations from SBIN, Indiabulls Housing, HDFC. Next week, RBI Monetary Policy Committee outcome will be an important event along with US Fed Rate Decision & BoE Interest Rate Decision with several PMI data. Also, Trumps mood in the trade war, movement of crude oil prices and the movement of currencies of different countries are some of the events investors would be watching closely.
Though the market is on the all-time high, investors are fearful of fresh investment as the surge in the market is stock specific and not on economic levels. Macro factors are the real concern for India and ultimately for the retail investors. The uncertain and unnatural behaviour of market kept investors in the dilemma of what's going to happen next.
This Weeks Market Highlights:
Benchmark Indices:
1. The benchmark indices started the week on a bullish note as Sensex surged 222 while Nifty was near 11,100 as Modi government slashed tax & won the trust vote.
2. Baring IT all sectoral indices closed in green led by FMCG, PSU bank, realty, metal and bank. Nifty midcap index outperformed frontline indices, surged 200 points.
3. On Tuesday, the markets closed on record highs as Sensex rose 109 points & Nifty ended near 11,150 on the back of earnings optimism.
4. On Wednesday, equity indices ended on an anti-climax note as Sensex rose 33 points while Nifty ended 2 points lower.
5. On Thursday market ended at fresh record highs as Sensex rose 126 points & Nifty ended over 11,150 after touching the new high.
6. Nifty PSU banks surged over 5% followed by financials, realty, pharma which ended in green while IT, auto, metal closed lower. The Nifty midcap index rose 109 points.
7. On Friday, the market started on the record high note led by ITC & Hindalco.
Broader Index & Global Market:
- This week the broader market outperformed the market especially midcap & smallcap which rose 4-5% on strong earnings growth. On the sectoral front, Nifty PSU banks, financial services, metal, realty, FMCG, pharma and banks surged 4-9% while IT, Auto & energy remained flat due to some profit booking.
- Global market, too, traded higher but some markets remained under pressure. The US market traded higher due to quarter earnings while the Asian markets remained under pressure due to trade war tension & crude oil prices. Next week, Manufacturing PMI, Services PMI and Employment data along with Fed Rate decision are the events to watch out for.
Movers & Shakers
Shares of ACC Ltd. surged nearly 20% this week following better than expected June quarter earnings & positive outlook for 2018 cement demand. The company reported a profit of Rs.325.50 crore for June quarter, up 1% from a year ago. The profit was higher than the Rs.239 crore analyst estimated by Bloomberg. The volumes grew 7% to 7.24 million tonnes. Revenue rose 11% to Rs.3848.20 crore, beating estimates of Rs.3654 crore.
Shares of Symphony Ltd. plunged over 15% this week, on the back of poor June quarter numbers. The company's Q1FY19 net profit fell 49% to Rs.20 crore versus Rs.39 crore in the same quarter last fiscal. Revenue of the company slipped 23.2% to Rs.146 crore versus Rs.190 crore. The company declared the first interim dividend of Re 1 (50%) per equity share having the face value of Rs.2 each for the FY2018-19.
Key Market Drivers
India will remain the fastest-growing major economy this year supported by increased government spending ahead of next year's general election. However, rising oil prices pose the biggest downside risk, a Reuters poll of economists showed. The over $2 trillion economies, which surpassed France recently to become the world's sixth-largest economy, is expected to grow 7.4% in the fiscal year ending in March 2019 and 7.6% next, according to average forecasts in the latest poll of nearly 70 economists, taken July 19-24.
An inter-creditor agreement, signed by a majority of the countrys lenders on Monday will be used to fast-track resolution for mid-sized stressed loan accounts, bankers involved in the process said. While large a/c with more than Rs.2,000 crore in debt will most likely need to be resolved under the IBC, loan a/c between Rs.50 crore to Rs.2,000 crore could be cleared faster using the inter-creditor agreement, they said. The lenders' pact is the first step in the Sashakt resolution plan proposed earlier this month. It is these accounts that bankers will focus on resolving, using the inter-creditor agreement and the AMC/AIF structure.
Event Watch
Indias Federal Fiscal Deficit (June) & Infra. Output for June (YoY) data will be on 31st July 2018. Nikkei Markit Manufacturing PMI will be on 1st August & Nikkei Services PMI for July will be on 3rd August 2018.
The 3rd Bi-monthly RBI Monetary Policy Committee will start on 31st July & rate outcome will be on 1st August 2018
Q1 FY19 Result:- NTPC, HDFC, Power Grid, NHPC, Avenue Supermart.
Global:- US Fed Interest Rate Decision will be on 1st August 2018. BoE Interest Rate Decision will be on 2nd August 2018
Stocks To Watch
ITC Ltd. is on the upside while Jubilant Industries Ltd. is on the downside.
Share Market News 26-July-2018
Sensex, Nifty End At Record High Due To Strong Earnings Momentum
The Benchmark indices started on a higher note as Sensex rose 100 points & Nifty above the 11,150 mark. The equity market hit fresh record high & hovered around that level as Sensex was up over 100 points while Nifty above 11,150. Nifty bank & financials, auto & FMCG traded strong while IT, metal & media traded lower. Nifty midcap index outperformed frontliners, was up 80 points.
In the afternoon session, the market was off days high as Sensex was up nearly 100 points & Nifty hovered around 11,150. Nifty banks & financials, realty & pharma remained strong while media, metal, IT & auto traded under selling pressure. The Nifty midcap index continued to outperform the market, was up 0.4%.
In the last hour of trade, the market continued to trade higher as Sensex was up 100 points while Nifty above 11,150 mark. The market ended at record highs on July F&O expiry. Nifty PSU bank surged over 5% followed by financials, realty, pharma & FMCG ended in green while IT, auto, metal & media index closed lower. Nifty midcap index outperformed benchmark indices, closed 109 points higher. Sensex closed 126.41 points up at 36,984.64, Nifty up by 35.30 points at 11,167.30.
Top Gainers
SBIN by 6.40% to Rs.289.25, Eicher Motors by 3.71% to Rs.28,300, Power Grid by 3.67% to Rs.182.10, Grasim by 3.62%to Rs.1,021.50, ICICI Bank by 3.51% to Rs.284.30.
Top Losers
Yes Bank by -4.03% to Rs.367.45, Maruti by -3.78% to Rs.9,390, IOC by -2.21% to Rs.159.50, HindPetro by -1.79% to Rs.276.90, BPCL by -1.76% to Rs.388.70.
Analysis Of Top Gainer And Loser
SBIN is the top gainer in today's market after it said it expects to recover half of the assets that turned sour in the initial 12 large bad loan accounts that were identified for bankruptcy resolution.
Yes Bank is the top loser in today's market despite meeting the Street's estimates in Net Profit part but its provisions for bad loans rose 56% sequentially to Rs.625.65 crore in the June quarter, that hurt the sentiment of the investors.
Key Market News
US President Donald Trump and European Commission chief Jean-Claude Juncker today agreed on a plan to defuse the festering trade dispute between the two major economies. The agreement, though short on details, means Washington will not follow through with a threat to impose tariffs on autos, which would hurt the dominant German car industry. The outcome seemed a victory for Trump, who had assured supporters that his confrontational trade strategy would bear fruit, and who appears to have conceded little in the talks with the EU.
Payroll count based on Employees Provident Fund Organisation (EPFO) showed that 7.43 lakh jobs were added in May this year. A total of 44.74 lakh jobs were added in the formal economy during September-May 2017-18, government data showed. Of the 44.74 lakh, new jobs added across age groups, 29.61 lakh or 66.1 percent were created in the 18-25 age group, considered a proxy for new jobs. The EPFO manages social security funds of workers in the organised and the semi-organised sectors and has, at present, 6 crore members with an active contribution.
Stocks To Watch
Welspun Corp Ltd. is on the upside while Intellect Design Arena Ltd. is on the downside.
Welspun Corp is currently trading at Rs.130.70, up by Rs.18.95 or 16.96% from its previous closing of Rs.111.75 on the NSE. The scrip opened at Rs.112.65 & has touched a high & low of Rs.133.80 and Rs.108.30 respectively. So far 1,44,91,073 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,360.41 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.197.15 on 22-January-2018 & a 52 week low of Rs.102.75 on 20-July-2018.
Intellect Design is currently trading at Rs.191.95, down by Rs.18.10 or 8.62% from its previous closing of Rs.210.05 on the NSE. The scrip opened at Rs.202.00 & has touched a high and low of Rs.202.00 & Rs.186.35 respectively. So far 11,12,597 (NSE) shares were traded on the counter. The current market cap of the company is Rs.2,424.65 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.227.00 on 13-June-2018 and a 52 week low of Rs.96.50 on 11-August-2017.
Share Market News 25-July-2018
Sensex Ends At Record High For A 3rd Day; Nifty At 11,130
The Benchmark indices had subdued start with Sensex rose 60 points & Nifty eyed the 11,150 mark. The equity market after hitting fresh high off days high as Sensex was up 30 points while Nifty above 11,100. The Nifty metal rallied over 1% followed by financials & PSU bank while media, pharma & IT traded under pressure. Nifty midcap index outperformed frontline indices, was up 0.2%.
In the afternoon session, the market traded higher as Sensex rose around 100 points while Nifty near 11,150. Among sectoral indices, metals continued to be the top gainers, while pharma, IT & infra names continued to lag. Among broader markets, midcaps traded strong was up almost half a per cent.
In the last hour of trade, the market remained strong as Sensex rose 90 points while Nifty near the 11,150 mark. The market ended on anti-climax note. Among sectoral index Nifty metal, PSU bank & financials rose 0.5-1.5% while realty, pharma, media, auto & IT ended in red, was down 0.5-1.5%. The Nifty midcap index also closed on a flat note due to last hour selling pressure, rose 9 points. Sensex closed 33.13 points up at 36,858.23, Nifty down by 2.30 points at 11,132.00.
Top Gainers
IBULHSGFIN by 3.80% to Rs.1,306, Bajaj Finserv by 1.79% to Rs.6,950, SBIN by 1.69% to Rs.271.35, UPL by 1.56%to Rs.640.00, Adani Ports by 1.52% to Rs.398.55.
Top Losers
NTPC by -4.10% to Rs.151.00, Lupin by -2.92% to Rs.797.00, HCL Tech by -2.68% to Rs.965.00, Ultratech Cement by -2.61% to Rs.4,028.95, Axis Bank by -2.59% to Rs.531.95.
Analysis Of Top Gainer And Loser
Indiabulls Housing Finance is the top gainer in today's market as strong buying was continued to see in the stock ahead of Q1 earnings.
NTPC is the top loser in today's market after Indian government is in talks to sell its stake in hydropower producer NHPC to the electricity generator NTPC.
Key Market News
India will remain the fastest-growing major economy this year supported by increased government spending ahead of next year's general election, but rising oil prices pose the biggest downside risk, a Reuters poll of economists showed. The over $2 trillion economies, which surpassed France recently to become the world's sixth-largest economy, is expected to grow 7.4% in the fiscal year ending in March 2019 and 7.6% next, according to average forecasts in the latest poll of nearly 70 economists, taken July 19-24.
The National Stock Exchange has written to capital and commodity market regulator SEBI, seeking approval to extend the time of equity derivatives trading till nearly midnight, sources told Moneycontrol. The NSE, India's top stock exchange, is looking to start a second trading session between 5:00 pm and 11:55 pm, only for equity derivatives, after the regular session ends at 3.30 pm. It is not clear whether trading will be held in single-stock derivatives or only index derivatives in the absence of a cash market during the second session.
Stocks To Watch
Navin Fluorine International Ltd. is on the upside while Hexaware Technologies Ltd. is on the downside.
Navin Fluor is currently trading at Rs.670.20, up by Rs.70.75 or 11.80% from its previous closing of Rs.599.45 on the NSE. The scrip opened at Rs.604.90 & has touched a high & low of Rs.699.00 and Rs.595.80 respectively. So far 12,63,423 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,343.05 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.880.00 on 26-December-2017 & a 52 week low of Rs.583.05 on 24-July-2018.
Hexaware is currently trading at Rs.454.10, down by Rs.42.00 or 8.47% from its previous closing of Rs.496.10 on the NSE. The scrip opened at Rs.466.00 & has touched a high and low of Rs.475.70 & Rs.450.65 respectively. So far 82,60,994 (NSE) shares were traded on the counter. The current market cap of the company is Rs.13,552.51 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.557.70 on 09-July-2018 and a 52 week low of Rs.239.40 on 24-July-2017.
Share Market News 24-July-2018
Earnings Optimism Sends The Market Close To Record High; Nifty Near 11,150
The Benchmark indices continued yesterdays rally as Sensex at fresh high was up 90 points & Nifty above 11,100. The equity market traded strong as Sensex rose 120 points while Nifty well above 11,100. Barring Nifty IT & FMCG all sectoral indices traded in green led by auto, metal, media, realty & pharma, rose 1-2.5%. Nifty midcap index outperformed frontline indices, surged over 1%.
In the afternoon session, the market continued to trade higher as Sensex was up 80 points while Nifty traded above 11,100. Nifty metal, realty, media, pharma & auto rallied 1-3% while IT, FMCG & private banks traded under pressure. Nifty midcap index continued to outperform frontliners, was up over a percent.
In the last hour of trade, the market traded near days high as Sensex rose 130 points while Nifty traded well above the 11,100 mark. The market ended the day on a strong note. Nifty Metals gained near 3%, followed by realty, pharma, media & PSU banks while IT, FMCG & Pvt. bank under pressure. The Nifty Midcap index continued to outperform benchmark indices, surged over 1.3% on strong market breadth. Sensex closed 106.50 points up at 36,825.10, Nifty up by 49.55 points at 11,134.30.
Top Gainers
Grasim by 8.20% to Rs.897.00, Hindalco by 5.63% to Rs.207.20, IBULHSGFIN by 5.27% to Rs.1,260.25, L&T by 3.74%to Rs.1,327, Ultratech by 3.00% to Rs.4,130.
Top Losers
Kotak Mahindra Bank by -2.00% to Rs.1,310.30, Hero Motocorp by -1.81% to Rs.3,108, HCL Tech by -1.54% to Rs.989.40, Bajaj Finance by -1.44% to Rs.2,716, Bajaj Auto by -1.35% to Rs.2,648.
Analysis Of Top Gainer And Loser
Grasim is the top gainer in today's market as a rally in ACCs shares spilled over to other cement stocks after ACC earnings where volume growth was strong. Grasim due to give the Q1 result on 14th August 2018.
Kotak Mahindra Bank is the top loser in today's market as some sort of selling pressure was seen in the stock.
Key Market News
An inter-creditor agreement, signed by a majority of the countrys lenders on Monday will be used to fast-track resolution for mid-sized stressed loan accounts, bankers involved in the process said. While large a/c with more than Rs.2,000 crore in debt will most likely need to be resolved under the IBC, loan a/c between Rs.50 crore to Rs.2,000 crore could be cleared faster using the inter-creditor agreement, they said. The lenders' pact is the first step in the Sashakt resolution plan proposed earlier this month. It is these accounts that bankers will focus on resolving, using the inter-creditor agreement and the AMC/AIF structure.
Oil traded near the lowest level in a month as concerns that economic turmoil could slow global demand outweighed expectations for a seasonal decline in U.S. crude stockpiles. Prices are a little more bearish, although it is a more modest decline; we dont see a price collapse and its still high $60s, said David Lennox, a Sydney based resource analyst at Fat Prophets. In the U.S., nationwide crude stockpiles were expected to have dropped by 3.1 million barrels last week.
Stocks To Watch
ACC Ltd. is on the upside while Granules India Ltd. is on the downside.
ACC is currently trading at Rs.1,484.25, up by Rs.173.45 or 13.23% from its previous closing of Rs.1,310.80 on the NSE. The scrip opened at Rs.1,400 & has touched a high & low of Rs.1,498.75 and Rs.1,400 respectively. So far 75,18,029 (NSE) shares were traded on the counter. The current market cap of the company is Rs.27,665.76 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.1,869.75 on 13-September-2017 & a 52 week low of Rs.1,255.65 on 17-July-2018.
Granules is currently trading at Rs.91.10, down by Rs.3.30 or 3.50% from its previous closing of Rs.94.40 on the NSE. The scrip opened at Rs.96.25 & has touched a high and low of Rs.96.45 & Rs.88.80 respectively. So far 1,09,37,896 (NSE) shares were traded on the counter. The current market cap of the company is Rs.2,330.03 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.150.00 on 15-January-2018 and a 52 week low of Rs.71.55 on 05-June-2018.
Share Market News 23-July-2018
Sensex Ends At Record As Modi Slashes Tax, Wins Trust Vote
The Benchmark indices started the week on a positive note as Sensex rose 70 points & Nifty well above 11K. The equity market held on the gains as Sensex was up 85 points while Nifty traded above 11,000. Nifty FMCG rose over 2% & pharma traded higher while IT, auto & metal traded under pressure. Nifty midcap index underperformed frontline indices, traded flat.
In the afternoon session, the market remained higher as Sensex was up 75 points while Nifty held the 11K level. Nifty FMCG surged over 2% followed by realty, pharma & PSU banks while auto fell over 1% followed by IT & bank. Nifty midcap index started to see strong buying with frontliners, was up 0.33%.
In the last hour of trade, the market rallied further as Sensex surged over 200 points while Nifty traded well above 11,050 levels. The market ended on a bullish note. Baring IT all sectoral indices ended in green led by FMCG, PSU bank, Realty, metal & bank which rose 0.5% to 2.5%. Nifty midcap index outperformed frontline indices on positive market breadth, surged 200 points. Sensex closed 222.23 points up at 36,718.60, Nifty up by 74.55 points at 11,084.75.
Top Gainers
UPL by 15.52% to Rs.634.90, VEDL by 4.10% to Rs.210.70, Bajaj Finserv by 2.84% to Rs.6,920, Adani Ports by 3.63%to Rs.383.50, ITC by 3.63% to Rs.283.95.
Top Losers
Hero Motocorp by -6.58% to Rs.3,154.85, Bajaj Auto by -5.34% to Rs.2,688.10, Wipro by -2.49% to Rs.275.95, HDFC Bank by -1.80% to Rs.2,149.70, Grasim by -1.71% to Rs.923.00.
Analysis Of Top Gainer And Loser
UPL is the top gainer in today's market after brokerages gave thumbs up to Arysta deal saying it would be value accretive for approx. $4.2 billion in cash consideration subject to customary closing conditions & regulatory approvals.
Hero Motocorp is the top loser in today's market as investors were worried about the margin after Bajaj auto managements comment. Hero Motocorp is due to report its Q1 number on Wednesday, 25th July 2018.
Key Market News
A nine-hour long meeting of the GST Council ended with several important decisions rate cuts, a simplified return filing process, benefit of input credit refund for the textile sector and a benign tax regime for composition dealers, among others. The GST Council has reduced the tax rate on over 50 goods, including washing machines, refrigerators, vacuum cleaners, paints, ethanol, cosmetics, sanitary napkins. The changes in tax rate would come into effect from July 27, 2018, said a press release issued by the Ministry of Finance.
The BJP-led National Democratic Alliance (NDA) government comfortably defeated the Opposition's no-confidence motion as PM Narendra Modi spared no punches in replying to Congress President Rahul Gandhis hug and wink spell in the Lok Sabha on Friday. The no-confidence motion was defeated with 325 members voting against it (in the governments favour) & 126 for the motion (backing the opposition). While the BJD walked out before the debate started in the morning, Shiv Sena remained absent during the debate.
Stocks To Watch
UPL Ltd. is on the upside while The South Indian Bank Ltd. is on the downside.
UPL is currently trading at Rs.634.90, up by Rs.85.30 or 15.52% from its previous closing of Rs.549.60 on the NSE. The scrip opened at Rs.572.80 & has touched a high & low of Rs.639.50 and Rs.561.10 respectively. So far 2,38,05,782 (NSE) shares were traded on the counter. The current market cap of the company is Rs.32,172.63 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.902.50 on 01-August-2017 & a 52 week low of Rs.537.25 on 19-July-2018.
SouthBank is currently trading at Rs.18.40, down by Rs.4.10 or 18.22% from its previous closing of Rs.22.50 on the NSE. The scrip opened at Rs.20.50 & has touched a high and low of Rs.20.50 & Rs.18.25 respectively. So far 7,69,65,162 (NSE) shares were traded on the counter. The current market cap of the company is Rs.3,365.67 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.34.75 on 09-January-2018 and a 52 week low of Rs.18.25 on 25-July-2018.
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