Podcast: Sectors that can lead the next leg of market rally
Although the market displayed nominal gains, it remained extremely volatile in a narrow range of 70 points. Nifty managed to add 35 points over the previous close and Sensex added 93 points. Sensex closed higher mainly due to exceptional strength in HDFC Ltd and Bajaj Finance. For Nifty, major contributors were Bajaj Finance, TCS and BPCL. Technically, the market has formed a “Hanging Man formation” at the top the current up move. It would result in short term weakness, If Nifty fails to break above 11490 and breaks below 11410 which is lowest level for the day. On the dismissal of highest point of the said formation at 11490, Nifty would rally to 11550/11600. Tomorrow, it could be one more volatile day for the market and we need to focus on strong companies to reduce risk that arises out of volatility.
Market traded range bound as tepid start to Q2 earnings influenced investors to stay cautious. Drop in 10yr yield and strength in rupee may induce Govt for further stimulus to back the demand environment. Additionally, some ease in global trade tensions will help to reduce the global headwinds and attract foreign liquidity.
- Vinod Nair, Head of Research, Geojit Financial Services
Bulls continue to have the upper hand as the index heads higher. Market breadth was tad on the negative side but nothing alarming. We had shared the importance of 11,150 zone on the downside which has held and is a new base for the nifty in the near term. We expect index to head higher and test 11,700 zone. Near term, support is placed at 11,300 zone and traders should look to position on the long side. Metals can see meaningful bounce back.
- Amit Shah, Technical Research Analyst with Indiabulls Ventures
The earnings season is likely to gain momentum as some of the front liners would be declaring their results in the next few days. We expect that investors and traders would focus more on the management outlook especially for consumption driven companies. Further, market participants would keep a close watch on trade talk developments between US and China, currency and crude oil price movement.
Bourses to hold 1-hour Diwali muhurat trading session on October 27
Leading stock exchanges BSE and NSE will conduct one-hour special muhurat trading session on the occasion of Diwali on October 27. The session trading would be held between 1815 hrs and 1915 hrs, the stock exchanges said in separate circulars.
PNB Housing to raise up to Rs 10,000 cr by issuing bonds in tranches
Price as on 16 Oct, 2019 03:20 PM, Click on company names for their live prices.
Fitch cuts Jain Irrigation rating to default
Global rating company Fitch cut Jain Irrigation’s creditworthiness to default citing failure of meeting debt obligations in the local market. It has now marked the company’s rating as ‘Restricted Default’ or ‘RD’ compared to CCC-, rated earlier.
Nothing has changed in two-three years. Everything remains the same. I am sorry to say this, but it is going to get accentuated in the smaller cap stocks. It is going to be a long time before they come back into favour.
Individual investors emerged the biggest stakeholders in YES Bank at the end of September quarter, even as promoters offloaded nearly half their stake in the private sector lender.
Latest shareholding data available with BSE revealed that individual investors, including high net worth individuals, now own 29.94 per cent stake in the bank against 20.46 per cent as of June 30.
Promoter Rana Kapoor’s holding in the bank declined to nearly one-fourth at 3.92 per cent as of September end from 11.88 per cent at the end of June.
MCX jumps 3% on two-fold jump in Q2 profit
Multi Commodity Exchange (MCX) on Tuesday reported over two-fold jump in net profit at Rs 71.75 crore for the quarter ended September. Its net profit stood at Rs 35.93 crore in the year-ago period, the company said in a regulatory filing.
Uttam Galva Steels gains 4% as Q2 consolidated loss narrows to Rs 335 cr
Price as on 16 Oct, 2019 12:04 PM, Click on company names for their live prices.
NBCC reports Rs 852 crore worth orders in September
Price as on 16 Oct, 2019 12:02 PM, Click on company names for their live prices.
ONGC says unit makes two new discoveries In Colombia and Brazil
Price as on 16 Oct, 2019 12:01 PM, Click on company names for their live prices.
ACC jumps 4% after solid Q3 results
Shares of cement maker ACC on Wednesday jumped over 4 per cent after it reported a 44.66 per cent rise in consolidated net profit for the third quarter ended September 30, 2019. It climbed 4.07 per cent to Rs 1,559.90 on the BSE. On the NSE, it gained 4.13 per cent to Rs 1,560. ACC on Tuesday reported a 44.66 per cent rise in consolidated net profit at Rs 302.56 crore for the third quarter ended September 30, 2019.
SBI LIfe climbs 4% despite reporting 49% drop in Q2 net
SBI Life Insurance Company reported a 48.7% fall in the net profit for the quarter ended September at Rs 129.8 crore compared to Rs 250.5 last year on the back of increased provisions. The insurer made provisions worth Rs 70.3 crore for diminution in value of investments in the quarter.
Omaxe in talks with a PE firm to raise Rs 400 crore; stock flat
Realty developer Omaxe is in advanced talks with private equity firms to raise over Rs 400 crore for its commercial project spread over 4.5 acre in Delhi’s Chandni Chowk, two persons familiar with the development said.
Wipro gains 3% on Q3 guidance
The IT major reported in-line revenue growth in the second quarter, helped by its consumer and manufacturing verticals, even as the Bengaluru-based IT services provider’s third-quarter growth forecast beat market expectations.
CG Power surges 5% as banks likely to restructure loans
Banks plan to restructure Rs 4,000 crore of loans given to fraud-hit CG Power and Industrial Solutions, including an easier moratorium on repayments and standstill arrangements to pay past loans, in a bid to keep the company’s operations going, three people familiar with the development said.
Govt plans to hive off Gail's pipeline biz; stock drops 1%
The Cabinet may, by next month, consider a proposal to hive off GAIL (India)’s pipeline business into a separate entity, but its sale to a strategic investor may not happen before 2022.
Aramco shows interest in BPCL stake; stock jumps 5%
The stock of Bharat Petroleum Corporation climbed 4.72 per cent intraday. The scrip has gained 28% over the past one month following the government’s plan to sell its stake in the oil marketing firm to a strategic buyer. The government has now initiated a bidding process to find out an asset valuer to estimate the fair value of the company.
Can Fin Homes gains 2% as Baring Partners eyes 30% stake
Baring Partners and a strategic investor are in the race to buy 30% in Can Fin Homes. Competitive intensity is less evident as many earlier bidders, such as Warburg Pincus, have already bought into different entities, and the industry itself is losing sheen due to a credit squeeze.
BPCL strategic sale likely in Rs 510-Rs 1100 range
Price as on 16 Oct, 2019 11:01 AM, Click on company names for their live prices.
Bajaj Consumer jumps 20% as MFs lap up shares
Shares of Bajaj Consumer Care hit its upper circuit limit in Wednesday’s trade after a host of mutual funds lapped up shares offloaded by its debt-ridden promoters.
The development eased concerns over high-promoter level debt. Following the development, the stock jumped 20 per cent to Rs 234.65 on BSE. There were over 3.5 lakh pending orders for the stock on the exchange.
DB Corp, Hathway Cable, Mindtree, Federal Bank and Aditya Birla Money to report September quarter results today
Price as on 16 Oct, 2019 10:13 AM, Click on company names for their live prices.
Pre-open session: Sensex gains 150 points, Nifty above 11,450; rupee trades at 71.59 against dollar
Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange were trading 42 points, or 0.37 per cent, higher at 11,477, indicating a positive start for Dalal Street.
Tech view: Nifty50 forms Doji candle
Nifty50 on Tuesday settled above the 11,400 level for the first time in October. It had hit the level in intraday trade at least three times before but faced strong resistance each time. Analysts said if Nifty holds on to the 11,400 level, it may head towards the 11,500-50 range. Support is seen around 11,330 level.
Asian stocks gain on-EU-Britain Brexit progress
Asian shares took off on Wednesday and sterling held near six-month highs as Britain and the EU made headway on a Brexit deal ahead of a leaders' summit though it remained unclear if London could avoid postponing its scheduled departure on October 31. Japan's Nikkei jumped 1.7 per cent while Australian shares added 0.9 per cent and South Korea's KOSPI index climbed 0.7 per cent.
US stocks settled higher
US stocks closed higher, as the market was supported by a cheering start of the third-quarter corporate earnings season and modest manufacturing data of New York state. The Dow Jones Industrial Average index rose 237.44 points, or 0.89 per cent, to 27,024.80. The S&P500 index increased 29.53 points, or 1.00 per cent, to 2,995.68. The Nasdaq Composite Index rallied 100.06 points, or 1.24 per cent, to 8,148.71.
Oil prices rise on likely supply curbs
Oil prices rose on Wednesday, tracking gains in equities, as investors pinned hopes on a potential Brexit deal between Britain and the European Union and on signals from OPEC and its allies that further supply curbs could be possible. Brent crude oil futures had risen 11 cents to $58.85, up about 0.2% from the previous day's close.
DIIs buy Rs 929 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 436 crore on Tuesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 929 crore, data suggests.
Exports growth shrinks 6.57% in Sept
India’s exports contracted 6.57 per cent in September as shipments of petroleum, engineering, gems & jewellery and chemicals fell. Imports declined 13.85 per cent to a three-year low of $36.89 billion, indicating weak domestic demand in a slowing economy.
IMF lowers India's GDP growth target to 6.1%
The International Monetary Fund cut its estimate for India’s growth this year to 6.1% from 7% projected in July, calling on the country to use monetary policy and broad-based structural reforms to address cyclical weakness and strengthen confidence
Will meet tax targets: Revenue Secy
Revenue secretary Ajay Bhushan Pandey has said the government is well on track to meet its tax targets even after the significant cut in corporate tax rates and that any reduction in personal income tax would depend on impact of the measures taken on revenue and the budget.
RBI Guv faces board queries on financial frauds
Reserve Bank of India (RBI) governor Shaktikanta Das came under pressure at the bank’s board meeting last week, with two external directors questioning how a string of frauds that have surfaced since 2018 remained undetected for years, reports ET. The two board members referred to the losses suffered by Punjab National Bank, which bankrolled jeweller Nirav Modi and his uncle Mehul Choksi; the multiple irregularities in IL&FS, which came to light after the firm defaulted on payment obligations; and the recent failure of Punjab & Maharashtra Coop (PMC) Bank — 70% of whose loan book was cornered by Mumbai-based realtor HDIL.
Cannot sacrifice economic strength: FM
India wants to comply with global sanctions, including U.S. sanctions on Venezuela and Russia, but also needs to maintain its own strength and strategic interests, Finance Minister Nirmala Sitharaman said in an interview on Tuesday. “Global headwinds ... are getting stronger by the day,” Sitharaman said. Asked about further fiscal stimulus, she said: “I have not closed the door” on that.
China to retaliate if US passes Hong Kong Bill
China threatened to retaliate if the US Congress follows through with passing legislation that would require an annual review of whether the city is sufficiently autonomous from Beijing to justify its special trading status, reports Bloomberg. The Hong Kong Human Rights and Democracy Act is one of four measures passed by the U.S. House Tuesday in unanimous voice votes.
1/3rd large firms not to switch to new tax regime: Crisil
A third of India Inc is yet to decide on whether to shift to the newer corporate tax regime offering lower outgoes, and those planning to switch have no plans to pump the gains into capex investments, given the plunging demand, finds a Crisil survey. Two-thirds of the 850 companies surveyed by rating agency Crisil want to shift, but the benefits are unlikely to result in higher investments by them immediately. While announcing a 10-12 percentage points cut in corporate tax rate last month, the government had said companies would have to give up existing tax exemptions to be eligible to move to the new regime.
New orders down at capital goods firms in Q2
Capital goods and engineering companies may have witnessed a decline in new orders in the second quarter of 2019-20, as government spending continued to be muted even after the first quarter which was affected due to elections. Sluggish macroeconomic data has aggravated concerns that weakness may continue, analysts said. Government orders have kept the order book ticking for these companies for almost four to five years now as private sector capex remained muted.
Sensex on Tuesday
Trade-related optimism kept the sentiments in the global markets upbeat on Tuesday. The Sensex finished at 38,506.09, up 291.62 points while the Nifty gained 87.15 points to end at 11,428.30.
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