Nov 09

Daily Market Commentary : 7th Nov. 2016

The Indian equity market ended higher on Monday snapping a five day losing streak. After gap up start, Nifty remained in a narrow range for most part of the session; however, profit taking in final hour trimmed the intra day gains.

The metal, pharma, banking, financials, FMCG, power and realty stocks ended with gains. On the other hand, telecom and capital goods stocks were among the major losers. The midcap closed 0.59% higher and smallcap soared 1.19%.

Nifty closed with a gain of 63 points at 8,497, while BSE Sensex ended with a gain of 185 points at 27,459.

On the global front, Asian stocks bounced and the dollar strengthened on Monday. Oil prices rose by over 1% with traders citing opportunistic buying after sharp declines in the previous week that brought prices to their lowest since early August because of ongoing weak fundamentals. Japan’s Nikkei closed higher. China’s Shanghai Composite and Hong Kong’s Hang Seng ended marginally up.

In Europe, the FTSE 100 gained 1.3%. The CAC 40 and DAX jumped 1.7% each.

Lupin soared 7% to Rs 1,519 after the company received the inspection closure report from the USFDA for its Goa facility.

Punjab National Bank climbed 6.5%. Punjab National Bank reported a net profit of Rs 549 crore in the second quarter of the current fiscal, a fall of 11% from the Rs 621 crore profit recorded in the corresponding year-ago period.

Dalmia Bharat Ltd gained 1.2% as the Board of Dalmia Bharat and OCL India decided to merge the two entities. The merged entity will have a cement capacity of 25 million tonnes spread across eastern and southern India.

Bank of Baroda rallied 4%. Bank of Baroda reduced the marginal cost of fund (MCLR) based interest rates by 10 basis points across different tenors with effect from November 7.

KPIT Tech gained 1.5%: KPIT Technologies will sell its Berlin-based subsidiary KPIT Medini Technologies AG to ANSYS, but did not disclose the deal size.

Dena Bank dropped 2.5% after the bank posted net loss at Rs 44 crore for the quarter ended September 30, 2016 as compared to net profit of Rs 38.8 crore for the quarter ended September 30, 2015.

HCC climbed 3.8% to Rs 36 on the BSE. The RBI mandated Overseeing Committee (OC) has approved the (S4A) Scheme of Sustainable Structuring of Stressed Assets for Hindustan Construction Company. The ICICI led joint lenders’ forum had proposed the scheme for the infrastructure major.

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

Out of 1,516 stocks traded on the NSE, 385 declined and 1,090 advanced today.

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Nov 07

Daily Market Commentary : 4th Nov. 2016

The Indian stock market declined for the third consecutive session after a weak opening in European equities increased anxiety among investors ahead of next week’s U.S. presidential elections. Both the indices ended the truncated week down 2.5%. It is their biggest weekly decline since October 2. Also, sharp decline in Midcap and Smallcap pack completely unsettled the participants and pushed them on the back foot.

Nifty closed with a loss of 51 points at 8,434, while BSE Sensex ended with a loss of 156 points at 27,274.

Asian markets closed in red as investors remained cautious ahead of the U.S. presidential election next week as well as the release of the U.S. jobs data for October later in the day.

China’s Shanghai Composite and Hong Kong’s Hang Seng closed marginally lower, while Japan’s Nikkei closed lower by 1%.

In Europe, the FTSE 100 was trading down by 1%. DAX and the CAC 40 were trading flat around 0.80% each.

Titan Company Ltd slumped 2.2% on the BSE. The company has posted a profit after taxes of Rs 180.7 crore for the quarter ended September 30, 2016 as compared to Rs 146.4 crore for the quarter ended September 30, 2015.

Shares of the FMCG stocks rallied 1.4% after the GST council decided on a four tier tax rate structure. The tax rate slabs have been fixed at 5%, 12%, 18% and 28%, Finance Minister Arun Jaitley said in a press conference in New Delhi. ITC zoomed 3.6%, Colgate gained 3.4% while Dabur advanced 1.8%.

Larsen and Toubro slipped 1.7%. Suuti will pare its holding in India’s largest engineering company Larsen and Toubro Ltd through a block deal, as per media reports.

Pharmaceuticals stocks were under pressure as reports suggested that United States may bring charges of price collusion against a group of drug makers before the end of this year. The BSE Healthcare slipped 4% or 657 points at 15,150 as against the previous close of 15,807. The BSE Healthcare opened at 15,686 and hit a high of 15,406 and a low of 15,036. Sun Pharma fell 7%, Dr Reddy’s dropped 5.2% and Aurobindo Pharma tanked 3.6%.

Mphasis slipped 1.3%. The IT company registered a 3% rise in its consolidated net profit at Rs 211 crore for the quarter ended September 30, 2016 against Rs 204 crore in the same quarter last year.

TD Power Systems fell 4.6%. TD Power posted a net profit of Rs 1.3 crore for the quarter ended September 30, 2016 as against a net profit of Rs 1.1 crore in the same quarter a year ago.

Tube Investment dragged 2.3% to Rs 638. The company reported 113.3% rise in net profit at Rs 54 crore for the quarter ended September 30, 2016 as against Rs 25 crore in the corresponding quarter a year ago.

The rupee was trading marginally higher by one paise at 66.73 per US dollar.

Out of 1,478 stocks traded on the NSE, 1,292 declined and 159 advanced today.

Top 5 Nifty Gainers: Lupin Ltd. (6.59%), BHEL (3.48%), ITC Ltd. (2.87%), SBI (2.74%) and Dr. Reddys Lab (2.35%).

Top 5 Nifty Losers: Hind. Unilever (-0.78%), TCS (-0.61%), HDFC (-0.59%), L&T (-0.24%) and Wipro (-0.21%)

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Nov 04

Daily Market Commentary : 3rd Nov. 2016

The Sensex and Nifty closed near a 4-month low amid weakness in global markets and uncertainty about the outcome of US presidential elections which weighed on the sentiment.

The domestic market opened lower, the Nifty breached the crucial 8500 level for the first time since July 11.

Nifty closed with a  loss of 29 points at 8,485, while BSE Sensex ended with a loss of 97 points at 27,430.

On the economy front, the Centre and the states have managed a broad consensus on the tax rates under the goods and services tax (GST) after the Centre agreed to add an additional slab of 40% in the rate structure of this ambitious tax reform, as per media reports.

Among the Asian Markets, China’s Shanghai Composite closed in green, while the Japan’s Nikkei and Hong Kong’s Hang Seng closed lower by 1% respectively.

Ambuja Cements advanced 1% after the company reported a net profit of Rs 277 crore for the quarter-ended September, as against Rs 244 crore.

TTK Prestige dropped 8.7% after the company a net profit of Rs 35.6 crore for quarter-ended September, compared to Rs 38.60 crore. It saw net sales of Rs 883 crore for the three-month period, compared to Rs 746 crore YoY.

Hero MotoCorp gained 1.7%. Hero MotoCorp reported a 3.6% increase in sales at 663,153 units in October.

Strides Shasun Ltd soared 7.2%. The company said it and Mylan agreed to settle regulatory and general claims on the Agila transaction. After payment to Mylan, Strides to receive approximately $30 million from regulatory escrow.

TVS Motor Company slipped 2%. The company posted 12% increase in total sales at 308,690 units in October. The Chennai-based company sold 274,622 units in the same month last year.

IL&FS Engineering tanked 6.3% after the company reported a net loss of Rs 81 crore for the quarter ended September 30, 2016 as against a net loss of Rs 82 crore in the same quarter a year ago.

European shares were trading flat ahead of Bank of England’s latest rate decision and fresh corporate earnings. The FTSE 100 was trading down. DAX and the CAC 40 were trading flat around 0.4% each.

The rupee was trading flat at 66.70 per US dollar.

Out of 1,412 stocks traded on the NSE, 1,015 declined and 354 advanced today.

Top 5 Nifty Gainers: ITC Ltd. (4.18%), Hind. Unilever (2.05%), NTPC (0.95%), ONGC  (0.86%) and Infosys Ltd. (0.82%).

Top 5 Nifty Losers: Sun Pharma (-4.46%), Dr. Reddys Lab (-4.39%), Lupin Ltd. (-3.91%), Maruti Suzuki (-1.70%) and Bharti Airtel (-1.28%)

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