Tag: bse

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Daily Big Picture – Benchmark Indices Outrun Previous Day’s Losses To End Higher

MarketSmith India_William Oneil IndiaToday’s Action:

Despite extreme volatility observed today, the benchmark indices ended in green.

Daily Market Review

 Amidst volatility during the entire trading session, equity indices edged higher by erasing some of its previous day losses. Frontline indices started the day on a good outing, tracking from its Asian peers. However, as the market approached the closing bell, both the Sensex and the Nifty ended the day with gains of 0.11% each.

 The Nifty touched a high of 9,828.45 after opening at 9,815.75 and finally settled at 9,765.55 for the day. The Sensex displayed a similar performance today, after opening the day at 31,393.93 it traded in the wide range of 31,484.28- 31,241.50 and finally ended at 31,291.85

 Broader markets continue to disappoint as they failed to track the major indices. The Nifty Midcap and Smallcap both posted a loss of 0.76% and 0.57%, respectively.

 The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, declined 0.71% in today’s trading session.

 On the Sectoral Chart, most of the sectors had something to take home barring Nifty Realty, Auto and  PSU Bank which slid 0.89%, 0.85% and 0.41% in today’s trade. While today’s gain could be attributed to the top three performing sectors which were Nifty Pharma, Media and Pvt Bank which gained 0.90%, 0.35% and 0.23%, respectively.

 Lower volumes in the exchanges today compared to the yesterday’s trading session serves as a testament to the subdued interest among investors. The distribution day count for the Nifty and the Sensex currently stand at 6.0 and 8.0, respectively.  The market status is currently “Uptrend Under Pressure”.

 The market witnessed yet another IPO today brought by Apex Frozen Foods, the Company plans to raise INR 152 crore through the issue that will close on August 24. Apex Frozen Foods is one of the integrated producer and exporter of shelf stable quality aquaculture products. The price band fixed for the issue ranges from INR 171-175 per share and approximately 87 lakh equity shares will be offered through the book building route. The Company proposes to use the proceeds for setting up a new shrimp processing unit with a capacity of approximately 20,000 MTPA.

 The inter-ministerial group on telecom, which was set to ease the financial stress for the telecom sector, is expected to finalise its recommendations to deal with issues such as an extension of deferred payment schedule, migration from prime lending rate to the marginal cost of funds-based lending rate regime for interest payments.

Current Outlook:

– Be cautious with any new purchases.

– Form a defensive game plan for your portfolio.

– Stay disciplined and exercise sound sell rules.

To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to  MarketSmith India.

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Weekly Big Picture – Key Indices Stage a Rebound on the back of Short Covering

MarketSmith India _ Weekly Big PictureMARKET PULSE

Status: Uptrend Under Pressure

Highlights:

Three up days, one down day

Weekly Market Review

The benchmark indices managed to recover some of the losses from the last week, as both the key indices notched up about 1% gains during the holiday-truncated week. The Nifty managed to eke out gains of 0.86% and 1.05%, respectively, on Monday and Wednesday on the back of short covering. Even as the market started on a positive footing on Thursday, the Nifty could not sustain its momentum and faced resistance near the 9,950 level, before closing for the day on a flat note, at 9,904.15. Today, Infosys dragged the key indices, with the Nifty declining 0.67%.

The Nifty started the week at 9,755.75 and traded in the range of 9,752.10-9,947.80. The index finally closed at 9,837.40, up 1.30% from last Friday’s close.

After opening at 31,299.52 points, the Sensex advanced 1.00% this week to close at 31,524.68. During the week, the Sensex traded in a range of 31,298.90-31,937.51.

The Nifty and the Sensex have picked up another distribution day in today’s session. The distribution day count for the Nifty and the Sensex currently stand at 6.0 and 7.0, respectively. The Nifty is currently trading about 3% off its all-time high, while the Sensex is down more than 3.5% from its peak. The market status is currently “Uptrend Under Pressure”.

The broader markets outperformed the frontline indices this week; the Nifty Midcap and Smallcap indices gained 3.94% and 4.93%, respectively.

The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, advanced 4.75% this week.

On the sectoral front, barring the Nifty IT index, which lost 0.72%, all indices put on gains for the week. The Nifty Realty, Metal, and FMCG indices topped the charts with gains of 6.43%, 5.22%, and 3.86%, respectively, during the week.

The headline news for today has been the resignation of Vishal Sikka as the Chief Executive Officer and Managing Director of Infosys with immediate effect. The SAP veteran has put in his papers after a protracted tussle with Infosys founders over issues of hefty compensation for the CEO and some seniors, and other corporate governance issues. Reacting to the news, the Infosys stock made a new 52-week low on the bourses, and finally closed for the day at INR 923.25 on the NSE, down 9.56% from yesterday’s close.

According to a report published by CARE Ratings, the gross non-performing assets (GNPAs) of 38 banks grew 16.6% on a sequential basis to reach INR 8,29,338 crore at the end of the quarter ending June 2017. The pace of NPA growth was the highest in the last six quarters, as the ratio of GNPAs to the total advances of the 38 banks increased to 10.21% in June 2017 compared with 8.42% in June 2016. IDBI Bank has the highest pie of its lending book turning sour, with a 24.11% GNPA ratio, while Yes Bank has the least stressed lending book with a GNPA ratio of 0.97%. In this context, government support becomes critical for the state-run banks so that they do not miss payments on additional tier 1 (AT1) bonds, which otherwise, could dampen the sentiment in the AT1 market.

There are no major events lined up for next week, which could serve as market movers.

Current Outlook:

– Be cautious with any new purchases.
– Make a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules.

To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to  MarketSmith India. 

 

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Daily Big Picture – Key Indices Take a Breather after Two Days of Gains

MarketSmith India_William Oneil IndiaToday’s Action:

The Nifty and the Sensex end flat, giving away most of the day’s gains. Broader Indices outperform key composites.

Daily Market Review

The benchmark indices ended flat on what looked like a day which seemed to have positive momentum following the gains witnessed on Monday and yesterday. By the close of trade, the headline indices gave away most of its gains and ended flat with a positive bias.

Today, the Nifty opened higher at 9,945.00. After touching an intraday high of 9,947.80, the index lost momentum and reached the intraday low at 9,883.75. The index finally settled at 9,904.15, up 0.07% from the last closing price. Similarly, the BSE Sensex opened at 31,919.17 and went on to hit an intraday high of 31,937.51. The index could not sustain at the day’s highs and slipped to an intraday low of 31,714.10. The Sensex finally settled at 31,795.46, up 24.57 points or 0.08% from yesterday’s close.

The market breadth, indicating the overall health of the market, was tilted towards the gainers in today’s session. On the NSE, 815 stocks advanced, compared with 629 stocks declining, and 69 stocks remaining unchanged.

The broader markets fared better in today’s trade, as the Nifty Midcap and Smallcap indices notched up 0.21% and 0.80%, respectively.

Similarly, the MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, advanced 0.72%, in today’s session.

On the sectoral front, the Nifty IT, Media, and Metal indices remained on top of the gainers list with upticks of 1.30%, 1.00%, and 0.74%, respectively. On the losing side, the Nifty Bank, Private Bank, and Auto indices dragged the market the most with losses of 0.82%, 0.82%, and 0.78%, respectively.

The Centre has come out with a draft of the National Pharmaceutical Policy, which aims to bring sweeping changes to the pharmaceutical industry. The policy aims to boost domestic manufacturing of drugs, impose a cap on trade margin, crack down on unfair marketing practices and limit ‘loan licensing’ by pharmaceutical companies. Loan licensing is a practice, where one company gets its products manufactured at a different company’s premises on a loan license contract. The policy also aims to create an environment suitable for research and development.

GMR Infrastructure shot up 19% intraday as the Supreme Court upheld an order by the Delhi High Court, which allowed the Company to use surplus land at the Delhi airport for non-aviation or commercial purposes. A government policy in 2016 had barred airports from using such land for non-aeronautical purposes. Investors see this as a positive move for GMR Infrastructure, which holds a 54% stake in Delhi International Airport Ltd (DIAL).

As part of its value-unlocking initiatives, Reliance Capital has filed an application with insurance regulator IRDAI for selling up to 25% stake in its wholly-owned subsidiary Reliance General Insurance Company (RGIC) to raise about INR 1,500-2,000 crore. With this, RGIC has become the fourth general insurance company in the country to have announced its intentions to get listed on the stock exchanges. Separately, Reliance Capital is aiming to list Reliance Nippon AMC and Reliance Home Finance this year.

Trading volume on the key indices today was lower in comparison to yesterday’s session. The distribution count for the Nifty and the Sensex remains 5.0 and 6.0, respectively. Currently, the indices are about 2.5% away from their all-time highs. The Indian market status is in Uptrend Under Pressure.

Current Outlook:

– Be cautious with any new purchases.

– Make a defensive game plan for your portfolio.

– Stay disciplined and exercise sound sell rules.

To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to  MarketSmith India. 

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Weekly Big Picture – Geopolitical Tensions and SEBI Curbs on Alleged Shell Companies Put Market in Reverse Gear

MarketSmith India _ Weekly Big Picture.

MARKET PULSE

Status: Uptrend Under Pressure

Current Outlook:

– Be cautious with any new purchases.

– Make a defensive game plan for your portfolio.

– Stay disciplined and exercise sound sell rules.

Highlights:

Five down days

Weekly Market Review

The benchmark indices ended the first day of the week on a subdued note as SEBI announced trading restrictions on 331 entities suspected to be shell companies. On Tuesday, the selling pressure accentuated further due to the SEBI action. On Wednesday, there was no respite for the market, as North Korea’s warning on a possible missile strike on the U.S. Pacific territory of Guam, spooked the global markets. The market weakness continued as the key indices continued to slide on Thursday and Friday. The broader indices had a devastating day, when the Nifty Midcap and the Smallcap indices tanked 3.20% and 4.62%, respectively, in yesterday’s session.

The Nifty started the week at 10,074.80 and traded in the range of 9,685.55-10,088.10. The index finally closed at 9,710.80, down 3.53% from last Friday’s close.

After opening at 32,377.80 points, the Sensex gave away 3.44% this week to close at 31,213.59. During the week, the Sensex traded in a range of 31,128.02-32,396.14.

The Nifty and the Sensex have picked up three and two distribution days, respectively, during the week. The distribution day count for the Nifty and the Sensex currently stand at 5.0 and 6.0, respectively. The headline indices are currently trading more than 4% off their all-time highs. In view of the deteriorating technical set-up, we changed the market status from “Confirmed Uptrend” to “Uptrend Under Pressure” yesterday.

The broader markets underperformed the frontline indices this week; the Nifty Midcap and Smallcap indices lost 5.47% and 6.52%, respectively.

The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, lost 5.84%, this week.

The sectoral chart is awash in a sea of red for the week, as none of the sectors managed to escape the brunt of the market sell-off. The top three losers this week were Nifty Realty, PSU Bank, and Pharma with declines of 9.16%, 8.57%, and 7.95%, respectively.

The first ever mid-term economic survey that was tabled in the Parliament today, has pointed to downside risks to the government’s earlier GDP growth forecast of 6.75-7.50% for FY 2018. Since the first volume of the survey was published in February this year, new factors such as real exchange rate appreciation, farm loan waivers, increasing stress in the power and telecom sectors, and transitional challenges from implementing the GST have imparted a deflationary bias to the economic activity in the country. The survey, authored by Chief Economic Adviser, Arvind Subramanian, has also mentioned that inflation was expected to remain below the RBI’s 4% target through the end of the fiscal year.

State Bank of India beat analysts’ expectations, as it reported a nearly three-fold jump in its consolidated profit at INR 3,032 crore for the quarter ending June 2017, but asset quality, including that of subsidiaries, continued to slip. Gross non-performing assets increased 86 basis points to 9.97%, and net NPA rose 78 basis points to 5.97% on a sequential basis. The growth in profit was driven by low base due to higher provisions in Q1 FY 2017 and partly by higher other income despite a sharp rise in tax expenses.

The following events could serve as market movers in the coming week:

– Release of the Consumer Price Index inflation data for the month of July on August 14.

– Minutes of the U.S. Federal Open Market Committee meeting in July 2017 to be released on August 16.

To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to  MarketSmith India. 

 

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Daily Big Picture – Technical Weakness Drags the Market; Nifty Finds Support at 9,780

DailyBigPicture-MarketSmithIndia-WilliamOneilIndia

Today’s Action:

Benchmark indices extended their losses, after breaching the key support level of 9,928 in yesterday’s session. Broader markets tanked, underperforming the headline indices.

Daily Market Review

The benchmark indices had yet another weak session in today’s trade. The key indices opened in red and sold off as the day progressed. The slide witnessed in today’s trading session can be attributed to technical weakness, as the market closed below a key support level of 9,928 yesterday. In today’s pre-market commentary, we had mentioned 9,780 as the next support level for the Nifty. The index, in today’s session, found support at this level before staging a minor bounce back.

Today, the Nifty opened lower at 9,872.85 and topped out at 9,892.65. The index started losing ground as the day progressed and reached an intraday low of 9,776.20, before finally settling at 9,820.25, down 0.89% from yesterday’s closing price. Similarly, the BSE Sensex, after opening lower at 31,750.73, hit an intraday high of 31,756.27. The selling pressure accentuated in the final hour of trade, as the index reached an intraday low of 31,422.80. The Sensex finally closed for the day at 31,531.33, down 266.51 points or 0.84% from yesterday’s close.

The market breadth, indicating the overall health of the market, was tilted towards the losers in today’s session. On the NSE, only 119 stocks advanced, compared with 1,362 stocks declining, and 18 stocks remaining unchanged.

The broader markets underperformed the headline indices as the Nifty Midcap and Smallcap indices lost 3.20% and 4.62%, respectively, in today’s session.

Today, the MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, lost 3.91%.

On the sectoral front, barring the Nifty IT index which managed to advance 0.46%, all the other sectors ended in red. The Nifty Realty, Media, and Auto indices bore the maximum brunt of the market weakness, with declines of 5.07%, 3.45%, and 2.92%, respectively.

According to the Mid-Year Review tabled in Parliament today, the government’s capital expenditure is expected to increase 25% to INR 3.9 lakh crore by FY 2020, with the outlay for the defense sector alone jumping 22%. The government has budgeted for capital expenditure of INR 3,09,801 crore for the current fiscal year, which will increase to INR 3,41,000 crore in the next one, and to INR 3,90,000 crore in FY 2020. Defense expenditure, which accounts for about 30% of the government’s capital outlay, is set to rise from INR 91,580 crore in the current fiscal to INR 1,01,137 crore in the next one and INR 1,11,706 crore in 2019-2020.

With a multi-fold surge in gold imports from South Korea, the government is contemplating steps to check the shipments of the precious metal from the country. India had operationalised a free trade agreement with South Korea in 2010. Gold imports from South Korea have jumped to USD 338.60 million between July 1 and August 3 this year, compared with USD 70.46 million for the whole of FY 2017.

Yesterday, the Allahabad bench of the National Company Law Tribunal (NCLT) classified Jaypee Infratech as an insolvent company, after accepting IDBI Bank’s plea on the issue. As a result, the board of directors of the company has been suspended. The Tribunal will now appoint an insolvency resolution professional, who will sit with Jaypee’s creditors to see if a resolution of the company’s debt is possible. If not, then the Company’s assets will be liquidated.

With today’s heavy trading volume, both the Nifty and the Sensex have picked up a distribution day, reaching a count of 4.0 and 5.0, respectively. The key indices are now trading more than 3% off their respective highs. In view of the deteriorating technical set-up, we are changing the status of the market to “Uptrend Under Pressure”.

Current Outlook:

– Be cautious with any new purchases.

– Make a defensive game plan for your portfolio.

– Stay disciplined and exercise sound sell rules.

To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to  MarketSmith India.