Oct 24

Daily Market Commentary : 21st Oct. 2016

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

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%)

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Oct 20

Daily Market Commentary : 19th Oct. 2016

Wiping out most of its early gains, the Indian stock market ended lower in a volatile trading session on Wednesday, taking a breather after Tuesday’s surge. The stock market swung between gains and losses due to profit-booking by funds and investors amid weak European cues. After opening with a positive bias, indices failed to carry forward the momentum. Nifty closed with a loss of 19 points at 8,659, while BSE Sensex ended with a loss of 66 points at 27,984.

On the global front, Asian stocks closed on a mixed note. The Shanghai Composite index closed marginally higher after its GDP grew 6.7% in the year to September, precisely in line with forecasts, with tepid private investment compensated for by robust government spending and a heated property market. Hong Kong’s Hang Seng index slipped 0.38%, while Nikkei 225 gained by 0.21%.

European investors awaited the outcome of the latest regional central bank meeting. The FTSE 100 was trading lower by 0.10%. DAX and the CAC 40 are trading down higher by 0.13% respectively.

Mangalore Chemicals and Fertilisers hit 20% upper circuit at Rs 63.35 after the company posted its net profit stands at Rs 15 crore for the quarter ended September 30 on strong operational performance despite revenue degrowth.

Sun Pharmaceuticals rallied 1% to Rs 750. ICGEB and Sun Pharma announced their new collaboration for development of a dengue vaccine, targeted against all the four serotypes of Dengue virus that cause disease in humans.

IDBI Bank rose 4% after media reports said that four bidders were looking to acquire a part of the government’s stake in the lender. GIC of Singapore, Asian Development Bank, IFC and Commonwealth Development Corporation are eyeing stakes in IDBI Bank, reports added.

BHEL rallied 3.7% to Rs 141 after the company commissioned three power projects – Koldam HEP (4×200 MW) of NTPCBSE 0.17%, Parbati HEP Stage-III (4×130 MW) of NHPCBSE 0.59 % and Rampur HEP (6×68.67 MW) of SJVN. As per media reports, the Supreme Court allowed an appeal against Madras High Court’s stay over construction of Ennore SEZ supercritical thermal power project.

L&T Technology Services advanced 0.45%. The company announced that it has secured a new multiyear, multi-million dollar contract with a large global semi-conductor company to provide verification support on their expansive portfolio of offerings and products.

Havells India tanked 4.7%. Havells India on Tuesday reported a 22% YoY jump in net profit to Rs 145 crore for the September quarter, as per new accounting standard Ind-AS.

Sterling Tools galloped 13% after the company informed BSE that a meeting of the Board of Directors of the Company will consider sub-division of the equity shares of the company on Nov 5.

Indian Oil Corporation gained 1.9% to Rs 326.90. CLSA has retained its buy rating on Indian Oil Corporation and raised target price by 20 per cent to Rs 810 from Rs 675.

Tata Power zoomed 3.5%. Tata Power has appointed three independent directors – Anjali Bansal, Vibha Padalkar and Sanjay Bhandarkar – on its board with effect from October 14, 2016.

Hatsun Agro Product Ltd gained 2%. The company is planning to invest around Rs 850 crore during the current fiscal year and next fiscal year, in order to set up two milk processing facilities, along with the expansion of existing facilities and marketing, as per media report.

Ceat dropped 3.3%. The company has introduced a new range of puncture-safe tyres for motorcycles, thereby creating a new segment.

The rupee was trading up four paise at 66.68 per US dollar.

Out of 1,531 stocks traded on the NSE, 636 declined and 832 advanced today.

Top 5 Nifty Gainers: ICICI Bank (4.79%), Adani Ports & Sez (3.39%), HDFC (1.70%), SBI (1.41%) and Bajaj Auto (1.20%)

Top 5 Nifty Losers: ITC Ltd. (-0.33%), Tata Motors (-0.17%), Hind. Unilever (-0.11%), GAIL (-0.09%) and HDFC Bank (-0.07%)

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