Monthly Archives: October 2016

Oct 25

Daily Market Commentary : 24th Oct. 2016

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The Indian equity market spent the entire day in a narrow range after the recent slide and ended higher on Monday. The first half was comparatively better; thanks to buying in select index majors, but profit taking in last two hours completely reversed the intra-day gains and pushed index to neutral line. Amidst all, stock specific move continued as usual where banking, financial and energy counters attracted maximum attention from the traders. Nifty closed with a gain of 16 points at 8,709, while BSE Sensex ended with a gain of 102 points at 28,179.

On the global front, Asian stocks closed on a higher note. China’s Shanghai Composite closed 1.21% higher. Latest data showed that the Nikkei Flash Japan Manufacturing Purchasing Managers’ Index (PMI) rose to 51.7 in October from September’s 50.4, improving at the sharpest rate in nine months. Japan’s Nikkei and Hong Kong’s Hang Seng ended in green.

European stocks were mixed ahead of monetary policy decision from the Bank of England. The FTSE 100 and DAX were up by 1% each, while CAC 40 is trading marginally higher.

Mindtree tanked 4.8%. The consolidated net profit declined by 23.2% QoQ to Rs. 94.8 cr against Rs. 123.5 cr of last quarter. The consolidated net revenue for the quarter declined by 2.4% QoQ to Rs 1295 cr as the company faced headwinds in all of its business verticals.

Inox Wind gained 1%. ReNew Power Ventures has issued a repeat order to Inox Wind for a 50 MW wind power project to be executed in the State of Gujarat in India. ReNew Power is India’s leading Independent Power Producer of clean energy with more than 3,000 MW of commissioned and under construction assets.

Wipro tanked 3%. The company posted 8.2% year-on-year drop in net profit at Rs 2,070 crore for the second quarter of this financial ended September 30, 2016.

Axis Bank slipped 1% to Rs 521.30. The bank will announce its Q2 numbers today.

Punj Lloyd zoomed 1.3%. Punj Lloyd’s wholly owned subsidiary – Punj Lloyd Infrastructure (PLIL) has executed definitive agreements with India Infrastructure Fund II (a SEBI registered Category I Alternative Investment Fund represented by its investment manager IDFC Alternatives Limited) to divest three operating solar projects aggregating to 45 MW located in Punjab and Rajasthan subject to customary approvals and other conditions precedent.

Mandhana Industries spurted 1.5% after the company has received in-principle approval from Bank of Baroda (Lead bank) for supplication for Strategic Debt Restructuring (SDR) of the company and it is awaiting the advice and approval of the members banks (Term loan and working capital lenders).

GMR Infrastructure gained 2.2% to Rs 13.36. GMR Infrastructure’s airport arm has raised $522.60 million by selling bonds to international investors, as per media reports.

The rupee was trading higher by 4 paise at 66.84 per US dollar.

Out of 1,557 stocks traded on the NSE, 639 declined and 855 advanced today.

Top 5 Nifty Gainers: Sun Pharma (1.01%), Maruti Suzuki (0.72%), Cipla (0.69%), Axis Bank (0.67%) and Hero Motocorp (0.49%)

Top 5 Nifty Losers: Tata Steel (-2.73%), Hind. Unilever (-1.61%), GAIL (-1.49%), TCS (-1.12%) and HDFC Bank (-1.06%)

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Oct 24

Daily Market Commentary : 21st Oct. 2016

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The Indian equity market ended in the red on Friday tracking declines in Asian stocks as a stronger dollar weighed on crude oil prices, hurting investor risk appetite. Today’s major decline was led by consumer durables followed by metal, energy, and finance stocks, while realty, IT, telecom, capital goods and banking were among the gainers. In first half, bias was slightly on the negative side but swift recovery in last one hour of trade completely trimmed the intra-day losses. Nifty closed with a mere six points loss at 8,693, while BSE Sensex ended with a loss of 53 points at 28,077.

On the global front, Japan’s Nikkei slipped 0.30%. Hong Kong’s Hang Seng and the Shanghai Composite closed in the green.

European stocks saw a mixed trade after the European Central Bank kept its policy rate unchanged after a monetary policy meeting. The FTSE 100 was trading up, DAX and the CAC 40 were trading lower around 0.5% each.

HCL Tech climbed 2% after the company posted a net profit after taxes, minority interest and share of profit/(loss) of associates of Rs 2015.6 crore for the quarter ended September 30, 2016 as compared to Rs 1739.8 crore for the quarter ended September 30, 2015.

Reliance Industries slipped 2.2%. The consolidated net profit grew by 43% yoy to Rs 9,902 cr compared to Rs 6926 cr in the previous year. Petrochemicals EBIT grew by 35.5% to Rs 3417 cr yoy.

Cipla slipped 2% after the pharma company informed BSE that the Supreme Court decided in favour of Union of India in an appeal filed against Cipla and others arising out of the judgement of the Honorable Allahabad High Court. The other petitions filed in the Bombay High Court on completely separate set of grounds related to alleged overcharged amounts are pending and are still subject to the interim stay granted by the Honorable Supreme Court in July 2016.

Wipro gained 1%. Wipro has signed a definitive agreement to acquire Appirio that creates next generation worker and customer experiences for a purchase consideration of USD 500 million. The company will announce its Q2 FY17 numbers today.

NBCC tumbled 4%. NBCC’s share sale today garnered 1.54 times subscription from institutional buyers, who put in bids totalling more than Rs 2,700 crore.

Biocon zoomed 2.6%. The company posted 52% rise in net profit over the last year for the second quarter ended September 30, led by growth in its small molecules, biologics and research services.

Gulf Oil Lubricants gained 1.6%. The consolidated net profit grew by 25% yoy to Rs 30 cr against Rs 24 cr in the last quarter.

Praj Industries dropped 5.6%. The company reported that its revenue was 6.3% lower than the street estimate of Rs 219.6 cr. Moreover, net profit was 66.6% lower than the estimated figure of Rs 9.1 cr.

Sadbhav Infra slipped 1.9%.The company signed an EPC agreement worth Rs 283 crore for mainteance and repair works during the development period and construction for four projects with four subsidaries.

Kajaria Ceramics slumped 6.7%. The company posted net profit after taxes, minority interest and share of profit of associates of Rs 64 crore for the quarter ended September 30, 2016 as compared to Rs 59 crore for the quarter ended September 30, 2015.

GHCL slipped 5.3% after the company reported a 79% growth in net profit for the second quarter of the financial year. Net profit came in at Rs 90.3 crore against Rs 50.4 crore in the previous year. The company’s EBITDA margins saw a growth of 25.4 percent from 21.2 percent in the year ago period.

Jyoti Structures jumped 8.5% after the company received an order from Transco CLSG for 225 kV Line worth $40.82 million.

Kalyani Steel tanked 6.1% to Rs 322 after the company reported a rise in net profit at Rs 37.6 crore against Rs 29.4 crore in the year ago period, its income from operations remained flat at Rs 330 crore.

Unichem Labs dropped 6% after the company’s net profit fell 11% to Rs 20.5 crore as compared to Rs 23.1 crore in the same quarter last year. The company’s EBITDA margins dropped from 11% to 10.8 percent.

The rupee was trading down five paise at 66.85 per US dollar.

Out of 1,505 stocks traded on the NSE, 716 declined and 740 advanced today.

Top 5 Nifty Gainers: Adani Ports & Sez (2.48%), ICICI Bank (2.45%), SBI (1.80%), Tata Motors (1.36%) and Maruti Suzuki (1.35%)

Top 5 Nifty Losers: Wipro (-3.75%), Asian Paints (-1.76%), Bharti Airtel (-1.13%), TCS (-0.91%) and Axis Bank (-0.87%)

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Oct 21

Daily Market Commentary : 20th Oct. 2016

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The Indian equity market closed with handsome gains on Thursday amid a choppy session. Indices managed to clock in marginal gains tracking positive global cues. The banking, metal, finance stocks were the top gainers followed by consumer durables and basic materials stocks. On the other hand, auto, IT, health care and FMCG were under pressure. After a gap up start, it oscillated in a range till the end while participants were busy reacting to the earnings. The news of the GST Council meeting ending without finalisation of the tax rate dented sentiments a bit and capped an upside in the index. Nifty closed with a gain of 40 points at 8,699, while BSE Sensex ended with a gain of 145 points at 28,130.

On the global front, Asian markets closed in green. The Shanghai Composite index closed marginally higher. Hong Kong’s Hang Seng index gained 0.3% and Nikkei 225 gained 1%.

Yes Bank advanced 1.3%. The bank has posted a net profit of Rs 802 crore for the quarter ended September 30, 2016 as compared to Rs 610 crore for the quarter ended September 30, 2015

KPIT Technologies zoomed 4.3%. The company has posted a net profit after tax, minority interest and share of profit of associates of Rs 56 crore for the quarter ended September 30, 2016 as compared to Rs 74 crore for the quarter ended September 30, 2015.

Quess Corp rallied 6% after the company entered into agreements to acquire stakes in Singapore-based Comtel Solutions and two domestic firms – Terrier Security Services and Simpliance Technologies – for undisclosed sums.

Bayer CropScience tanked 3% to Rs 4380. Bayer reported a marginal increase of 2% in net profit at Rs 159 crore for the quarter ended September 30, on higher sales.

RBL Bank soared 4.7% after the bank registered net profit growth by over a third to Rs 89.89 crore in Q2 FY17. Net interest income for the quarter was Rs 302.94 crore, an increase of 60%.

Ashok Leyland zoomed 1.7% after the company bagged an order from Tanzania government for vehicles, gensets, spares and equipment.

City Union Bank gained 3.5% on the BSE. Around 3.01 million shares of the bank changed hands in two block deals.

HCC Concessions Ltd commenced commercial operations of its Rs.1,720 crore Farakka Raiganj Highways Ltd (FRHL) in Bengal. The stock closed 1.3% higher on the BSE.

NBCC slipped 1% to Rs 251. Government’s offer to sell up to 72 million shares in NBCC India received 1.29 times demand at 3:05 pm local time, as per NSE data.

Suzlon gained 2% at Rs 15. Suzlon announced a joint venture with Canadian Solar for developing two solar projects of 15MW each in Telangana.

Hindustan Zinc inched up 1% after the company reported a 15% dip in net profit during the second quarter ended September 30, 2016 at Rs 1,902 crore on higher depreciation charges.

Tata Coffee Ltd dipped 3.4% after the company reported 62% increase in its consolidated net profit at Rs 44.7 crore for the quarter ended September 30.

Aptech zoomed 3%. The company reported consolidated net profit of Rs 7 crore for the quarter ended September 30 compared to 0.46 crore reported in the year-ago period.

Unitech climbed 4.4%. The Supreme Court directed Unitech to refund the principal cost of flats to 39 buyers who had booked apartments in a Gurgaon project seven years ago and have still not got possession of their homes.

The rupee was trading down 11 paise at 67.78 per US dollar.

Out of 1,480 stocks traded on the NSE, 742 declined and 673 advanced today.

Top 5 Nifty Gainers: GAIL (1.35%), Dr Reddys Lab (1.28%), Lupin Ltd. (0.98%), Wipro (0.49%) and TCS (0.42%)

Top 5 Nifty Losers: Axis Bank (-2.00%), ONGC (-1.63%), HDFC (-1.62%), Reliance Ind. (-1.56%) and Tata Steel (-1.26%)

To qualify NCFM Capital Market Dealers Module certification examination, register with Intelivisto.com and buy Capital Market comprehensive question bank which features mock test, chapter-wise and full length test as per NCFM standards. It also includes performance analysis tools to analyze the performance. For more information call on: +91-9582000102.