May 04

Daily Market Commentary : 3rd May 2016

The Indian equity market ended in deep red on Tuesday following a sudden bout of selling in scrips across the sectors. After opening on a subdued note, indices surged higher. However, the joy ride was short-lived as indices erased all its gains led by sharp sell-off in metals, banking, oil & gas and IT stocks. Even the midcap and small cap stocks were under pressure. On the other hand, only telecom stocks ended with smart gains. Nifty closed with a a loss of 59 points at 7,747. while Sensex ended with a loss of 207 points at 25,230.

Asian markets finished broadly lower today with shares in Japan leading the region. The Nikkei 225 is down 3.11%, while Hong Kong’s Hang Seng is off 1.50% and China’s Shanghai Composite is lower by 0.25%. European markets are trading higher today as French and German shares show gains. The CAC 40 is up 0.31%, while the DAX is up 1.06%. The British FTSE 100 is closed.

ICICI Bank cracked 4% after its net profit plunged 76% in March quarter numbers. The Bank posted a net profit of Rs.7018.90 million for the quarter ended March 31, 2016 compared with Rs.29220 mn for the quarter ended March 31, 2015.

Commenting on the same, Amar Ambani, Head of Research at IIFL, said, “Deposit growth was strong at 17% yoy with CASA deposits growing slightly ahead. Sustained strong traction in savings deposits was impressive and the SA ratio stood at a historic high of 32%. If economic recovery gains momentum from FY18, then RoA delivery could reach 1.6% in FY19 aided by a substantially improved business franchise and improved credit environment. Striping the valuation of subsidiaries, the standalone bank is trading at an undemanding valuation of 1.1x FY18 P/ABV. A highly capitalized balance sheet and headroom to generate profits through divestment of stake in subsidiaries provides high comfort about the bank’s ability to absorb credit shocks.”

Coal India dropped 3% to Rs.280. The stock was the top Nifty loser today. The company said its coal production for the month of April stood at 40.09 mt as compared to target of 44.48 mt.

Sun Pharma slipped 1.6% to Rs.798 after its subsidiary Taro Pharmaceutical ceased commercial sales for Keveyis which is used to treat periodic paralysis.

Rolta India jumped 11% to Rs.84.95 on BSE. The company bagged multi-year GIS contract from UK Power Networks.

Atul Auto tumbled 8% to Rs.483 after the company reported 50.36% drop in sales for the month of April 2016 at 1,242 units as compared to 2,502 units sold in April 2015.

CCL Products rallied 11% to Rs.215. The company’s consolidated revenue stood at Rs. 264.49 crore, up 22.22% yoy and 24.21% qoq.

Vishnu Chemicals plunged 5% to Rs.296.60 on BSE. The company reported its net profit declined by 27.83% to Rs.7.08 crore in the quarter ended March 2016 as against Rs.9.81 crore during the previous quarter ended March 2015.Its sales rose by 5.24% to R.126.55 crore in the quarter ended March 2016 as against R.120.25 crore during the previous quarter ended March 2015.

Ortel Communications slipped 1.1% to Rs.186 on BSE. The company net profit declined by 51.15% to Rs.2.76 crore in the quarter ended March 2016 as against Rs.5.65 crore during the previous quarter ended March 2015.

Tata Power gained 1.3% to Rs. 71.10. The company introduced its digital interface by launching a universal Mobile Application for all its stakeholders along with employees and consumers of Mumbai & Delhi. The Tata Power Mobile App is specially designed to be an exclusive platform to help customers and other stakeholders to connect and directly engage with the company.

BGR Energy Systems soared 11% to Rs. 117.60 on BSE. The company announced that with respect to an Agreement executed by the Company on March 30, 2016 at Tokyo, Japan with Hitachi, Ltd., Japan and Hitachi Power Europe GmbH, Germany (the “Agreement”) to settle their inter se disputes. The Agreement has come into effect and has become legally binding with effect from April 29, 2016 upon fulfillment of the conditions mentioned therein.

Tata Motors closed 0.54% higher at Rs.409.50. The company reported 9.9% growth in sales at 39,763 units in April compared with 36,190 in the same month last year. Domestic sales of Tata Motors’ commercial and passenger vehicles rose 11 per cent at 35,978 units during the month as against 32,404 in April 2015.

The Indian Rupee was trading up 5 paise at 66.39 per US dollar.

Out of 1,451 stocks traded on the NSE, 815 declined and 587 advanced today.

Top 5 Nifty Gainers: HDFC (3.27%) GAIL (1.50%), NTPC (1.50%), HDFC Bank (1.22%), and Hero Motocorp (0.99%).

Top 5 Nifty Losers: Adani Ports & Sez (-.9.60%), Tata Motors (-4.48%), Tata Steel (-4.09%), Bharti Airtel (-1.51), Axis Bank(-1.44%)

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May 03

Daily Market Commentary : 2nd May 2016

Indian benchmark indices languished in the red through the entire trading session today amid weak Asian markets and heavy losses in Japan as the yen surged against the dollar. The S&P BSE Midcap finished up by 1.1%, while the S&P BSE Small Cap finished up by 0.4%. Losses were largely seen in banking and realty stocks. Nifty closed with a a loss of 44 points at 7,806. while Sensex ended with a loss of 170 points at 25,437.

Asian markets finished broadly lower today with shares in Japan leading the region. The Nikkei 225 is down 3.11%, while Hong Kong’s Hang Seng is off 1.50% and China’s Shanghai Composite is lower by 0.25%. European markets are trading higher today as French and German shares show gains. The CAC 40 is up 0.31%, while the DAX is up 1.06%. The British FTSE 100 is closed.

ICICI Bank cracked 4% after its net profit plunged 76% in March quarter numbers. The Bank posted a net profit of Rs.7018.90 million for the quarter ended March 31, 2016 compared with Rs.29220 mn for the quarter ended March 31, 2015.

Commenting on the same, Amar Ambani, Head of Research at IIFL, said, “Deposit growth was strong at 17% yoy with CASA deposits growing slightly ahead. Sustained strong traction in savings deposits was impressive and the SA ratio stood at a historic high of 32%. If economic recovery gains momentum from FY18, then RoA delivery could reach 1.6% in FY19 aided by a substantially improved business franchise and improved credit environment. Striping the valuation of subsidiaries, the standalone bank is trading at an undemanding valuation of 1.1x FY18 P/ABV. A highly capitalized balance sheet and headroom to generate profits through divestment of stake in subsidiaries provides high comfort about the bank’s ability to absorb credit shocks.”

The India VIX (Volatility) index was up 3.35% at 17.0925. The BSE Midcap index ended up 1.1% and Smallcap index gained 0.39%.

The consumer durables, metal, basic materials and oil & gas were among the top gainers. On the other hand, banking, IT, realty and pharma stocks ended with losses.

On the global front, Asian stocks ended lower after Japanese benchmark index tumbled over 3% and Australian bank shares selling off. Nikkei 225 cracked 3.21% to 16,147. China’s Shanghai Composite index closed marginally lower and Hang Seng ended 1.5% lower to 21,067.05.

In Europe, the FTSE 100 is trading lower by 1.29%. DAX trading up 0.32% and the CAC 40 are up by 0.7%.

Balaji Amines Limited, Bharat Bijlee Limited, Biocon Limited, Blue Coast Hotels Limited Bodal Chemicals Limited, Cholamandalam Investment and Finance Company Limited, DPSC Limited Elgi Rubber Company Limited Gujarat Narmada Valley Fertilizers and Chemicals Limited, Hind Syntex Limited, IndusInd Bank Limited, Inventure Growth & Securities Limited, JHS Svendgaard Laboratorie, L&T Finance Holdings Limited,Mahindra & Mahindra Financial Services Limited, Marico Limited, Meghmani Organics Limited, Navin Fluorine International Limited, Noesis Industries Limited, Parrys Sugar Industries Limited, Piramal Enterprises Limited, Prakash Constrowell, SKS Microfinance Limited, Shriram Transport Finance Company Limited, Supreme Petrochem Limited, Tarmat Limited, UPL Limited, V.S.T Tillers Tractors, Yes Bank were some of the prominent stocks to log a fresh 52-week high.

USDINR trade today trading to 66.34

Out of 1,433 stocks traded on the NSE, 721 declined and 666 advanced today.

Top 5 Nifty Gainers: Tata Motors (3.18%) Adani Ports & Sez (3.15%), L& (2.08%),HDFC Bank (2.05%), and NTPC (1.70%).

Top 5 Nifty Losers: Sun Pharma (-.0.41%), GAIL (-0.35%), Coal India (-0.31%), Dr Reddys Lab (-1.51), TCS –(0.05%)

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May 02

Daily Market Commentary : 29th April 2016

Indian equity indices ended the week on a flattish note as global headwinds were at play. Indices lost ground in afternoon trade as ICICI Bank reported a sharp drop in fourth quarter earnings.Nifty closed with a a gain of 2.55 points at 7,849.80 while Sensex ended with a loss of 3.52 points at 25,606.62.

Marico Ltd stock ended 3% higher at Rs. 258. The Group has posted a net profit of Rs.1384.386 mn for the quarter ended March 31, 2016 compared with Rs.1100.350 mn for the quarter ended March 31, 2015. Total income increased from Rs.12450.148 mn for the quarter ended March 31, 2015 to Rs.13345.939 mn for the quarter ended March 31, 2016.

Bharti Airtel ended 2% lower at Rs.363. The company said that it will undertake the buyback of shares after securing approval from the Delhi high court for the scheme of amalgamation of its wholly-owned subsidiary with the company.

ICICI Bank Ltd ended 1% lower at Rs.236. The company posted a net profit of Rs.4067.10 mn for the quarter ended March 31, 2016 compared with Rs.30849.20 million for the quarter ended March 31, 2015. Total income has increased from Rs.249142.60 mn for the quarter ended March 31, 2015 to Rs.282167.80 million for the quarter ended March 31, 2016.

Dabur India Ltd ended 2% higher at Rs.276. The company reported 16.6% rise in net profit for the quarter ended 31 March 2016. Net profit for the full year increased 17.5%.

Lupin Ltd rose 2.11% to Rs.1,607. The company strengthened its branded drug portfolio in the US market with the relaunch of a drug to control postpartum hemorrhage (post delivery blood loss).

Hindustan Construction Co. Ltd ended 5% lower at Rs.21. The company said that its consolidated net loss for the full year widened to Rs.318.14 crore from Rs.159.45 crore.

HCL Technologies Ltd closed 6% lower at Rs.750. The IT firm posted disappointing results for the third quarter ended March 31, 2016, missing street estimates.

Idea Cellular Ltd ended 7% lower at Rs.118. Net profit of the company fell 24.7% to Rs.575.6 crore in Q4 compared with Rs.764.2 crore in Q3. Net revenue of the company stood at Rs.9,484 crore in Q4 as against Rs.9,009 crore in Q3.

USDINR trade today trading earlier recovered by 7 paise to 66.45

Out of 1,803 stocks traded on the NSE, 842 declined, 682 advanced and 279 remained unchanged today.

Top 5 Nifty Gainers: Cipla (0.90%) Lupin Ltd (0.82%), Reliance Ltd (0.64%),Coal Ltd (0.38%), and Axis Bank (0.14%).

Top 5 Nifty Losers: ICICI Bank (-4.14%), NTPC (-2.56%), AdaniPorts & Sez (-1.87%), Dr Reddys Lab (-1.51), Bharti Airtel (-1.36%)

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.