Nov 02

Daily Market Commentary : 1st Nov. 2016

The Indian equity market closed down for a second straight session, as trading resumed after a public holiday. Sentiments were positive in the first half, thanks to upbeat core sector data and expansion in manufacturing PMI figures.

Appreciation in rupee against the US dollar aided buoyancy. However, things changed dramatically in the last one & half hour as Nifty surrendered all its intraday gains and closed flat at the end of day.

Nifty closed with a gain of a mere one point at 8,626, while BSE Sensex ended with a loss of 54 points at 27,877.

On the economy front, the Nikkei Markit India Manufacturing Purchasing Managers’ Index (PMI) a gauge of manufacturing performance, jumped to 54.4 in October from 52.1 in September, indicative of a robust improvement in manufacturing business conditions in the country. India’s core sectors grew 5% in September driven by strong growth in the steel and petroleum products sectors. The growth in the Index of Eight Core Industries is stronger than the 3.2% rise in August.

On the international front, the Bank of Japan said it would keep its deposit rate steady at -0.1%, and would continue to target a zero yield for 10-year Japan government bonds.

Tata Steel tops the list of Sensex gainers, with a rise of 33.7%. Besides Tata Steel, other metal stocks are up in positive territory, thanks to encouraging Chinese manufacturing sector activity in October. Vedanta tops the list of gainers in the Metal space, rising nearly 8% with strong results triggering hectic buying at the counter. Hindustan Zinc jumped 7.9%, while MOIL was up 9.9%.

Eicher Motors jumped 5.4% after the company reported a 33% increase in total sales in October 2016 at 59,127 units as against 44,522 units in the same month last year. During October 2016, the number of motorcycle units exported, increased by 95% to 748 units from 384 units in October 2015.

Maruti Suzuki dropped 0.35% to Rs 5,878 after its sales dipped in the month of October. The company sold 1,33,793 units in October compared to 1,34,209 vehicles in October 2015.

BGR Energy Systems soared 4.5% after the company was awarded the Balance of Plant (BoP) Contract from TANGEDCO for 1×800 MW North Chennai Thermal Power Project – Stage III. BGR Energy secured this contract in an International competitive bidding which witnessed stiff competition. The value of the contract is Rs 2,600 crore The contract completion period is 36 months from the date of award.

Allcargo Logistics rallied 3% to Rs 194 after the company said its Board will meet on November 7, 2016, to consider a proposal for buyback of the equity shares of the company.

Kitex Garments tanked 16% to Rs 428 on BSE after net profit fell 52.4% to Rs 12.92 crore on a 20.5% decline in net sales to Rs 95.55 crore in Q2 September 2016 over Q2 September 2015.
Bharti Infratel zoomed 2%. KKR and pension giant Canada Pension Plan Investment Board (CPPIB) are in talks with Bharti Airtel to acquire a significant stake in its listed tower arm Bharti Infratel, as per media reports.

Ujaas Energy climbed 12% after the company said it received an order from the Airports Authority of India.

Heritage Foods slipped 4.6%. The company said it would acquire the dairy business of Reliance Retail through a slump sale. The company has executed a binding agreement for the acquisition. The proposed transaction is subject to regulatory approvals and other conditions and procedures that are customary for similar transactions, Heritage Foods said in a BSE filing.

Avanti Feeds gained 1% after the company reported its consolidated net revenue for Q2 FY17 was 34% higher YoY at Rs 713 crore. However, reported EBITDA fell by 11% YoY to Rs 56 crore and EBITDA margins shrank 397 bps YoY to 7.9%.

Ashok Leyland slipped 1.4%. The company posted total sales in October at 12,533 vehicles versus 9,803 vehicles last year. The company said October M&HCV sales were at 9,574 vehicles versus 7,176 vehicles last year. Its LCV sales stood at 2,959 vehicles compared to 2,627 vehicles last year.

The rupee was trading higher by five paise at 66.74 per US dollar.

Out of 1,550 stocks traded on the NSE, 890 declined and 600 advanced today.

Top 5 Nifty Gainers: M&M (3.10%), NTPC (1.13%) and Hind. Unilever (0.80%).

Top 5 Nifty Losers: SBI (-2.44%), GAIL (-2.24%), ONGC (-2.20%), Tata Motors (-1.96%) and Coal India (-1.76%)

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Nov 02

Daily Market Commentary : 28th Oct. 2016

The Indian equity market spent the entire day in a narrow range after the recent slide and ended marginally higher for the second consecutive session. The last trading session of the Samvat year 2072 today marked the beginning of the November series of derivatives contracts. Traders remained sidelined by mixed trends in Asia and on the back of expectations from the US Federal Reserve for an interest rate revision by the end of this year.

Nifty closed with a gain of 23 points at 8,638, while BSE Sensex ended with a  gain of 26 points at 27,942.

On the global front, Asian stocks closed marginally higher. Japan’s Nikkei closed up 0.63%. China’s Shanghai Composite and Hong Kong’s Hang Seng closed lower.

European markets were trading lower as earnings season continues amid heightened expectations that the U.S. Federal Reserve will raise rates in the near-term. The FTSE 100 and DAX were marginally down 0.26% each, while the CAC 40 is trading marginally up.

Gems and jewellery stocks like Titan, Gitanjali Gems and PC Jewellers are shining supported by festive buying on the occasion of Dhanteras.

After the 3 day drubbing, Tata Group stocks closed higher on Friday. Tata Motors, Tata Motors DVR, Tata Communications, Tata Metaliks, Tata Elxsi, Tata Teleservices, Tata Sponge Iron, Tata Coffee, Tata Global Beverages were up between 2%-5% on BSE. Only TCS closed in red. Tata group companies lost a combined Rs 27,506.34 crore in market value over the past three days after the ouster of Tata Sons Chairman Cyrus Mistry and his subsequent warning that the group may have to write down about two-thirds of its net worth due to five unprofitable businesses.

Eicher Motors dropped 2.2% after the company posted a net profit after tax, minority interest and share of profit of associates of Rs 413 crore for the quarter ended September 30, 2016 as compared to Rs 284.6 crore for the quarter ended September 30, 2015.

VRL Logistics tanked 6% after the company posted a net profit of Rs 13.8 crore  for the quarter ended September 30, 2016 as compared to Rs. 29.9 crore for the quarter ended September 30, 2015.

Colgate jumped 3.6% after the FMCG company posted a net income of Rs 181 crore for the quarter-ended September.

Tech Mahindra jumped 5%. Tech Mahindra posted a net profit of Rs 872 crore for the quarter ended September 30, 2016 as compared to Rs 983 crore for the quarter ended September 30, 2015.

Glenmark Pharma rallied 3%. Glenmark’s consolidated revenue was at Rs 2,224 crore ($336.55 mn) as against Rs 1,909 crore (US$295.45mn) recording an increase of 16.5%.

MOIL jumped 3% after the company signed a pact with the Madhya Pradesh government to conduct mineral exploration in the State.

The rupee was trading up three paise at 66.83 per US dollar.

Out of 1,519 stocks traded on the NSE, 577 declined and 889 advanced today.

Top 5 Nifty Gainers: HDFC (2.18%), BHEL (1.80%), GAIL (1.38%), M&M (1.13%)  and Tata Steel (1.11%).

Top 5 Nifty Losers: Axis Bank (-1.61%), ONGC (-1.40%), Infosys Ltd (-1.15%), Tata Motors (-1.00%) and Sun Pharma (-0.89%)

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