May 24

Daily Market Commentary : 23rd May 2016

Indian indices once again ended in the red extending its losing streak to fourth consecutive trading session. Equity market in India did start off on a promising note tracking overnight gains in the US markets, however it was short lived as indices lost ground gradually. Today’s decline was led by the health care, capital goods, realty and banking stocks. Even the mid cap and small cap stocks ended with marginal losses. On the other hand, FMCG, telecom, power and utilities ended with smart gains. Nifty closed with a loss of 19 points at 7,731 while Sensex ended with a loss of 72 points at 25,230.

Asian markets finished mixed as of the most recent closing prices with Japanese shares dropping amid renewed strength in yen as fresh data showed the country’s exports continued to fall. The Nikkei 225 & the Hang Seng fell 0.49% and 0.22% respectively while the Shanghai Composite gained 0.64%. European markets are lower today with shares in France off the most. The CAC 40 is down 0.29% while London’s FTSE 100 is off 0.10% and Germany’s DAX is lower by 0.09%.

Shares of Oil and Natural Gas Corporation (ONGC) plunged more than 2% today after it was reported that the company is facing a repeat of the Krishna Godavari (KG) basin fiasco in Iran. ONGC alleges that 11.12 billion cubic meters of natural gas worth Rs 110.55 billion has flowed from its idling KG basin blocks in Bay of Bengal blocks to neighboring KG-D6 fields of Reliance Industries. The same is now on the verge of repeating in the Farzad-B field with Saudi Arabia in the Persian Gulf, which it had discovered in 2008 but no contract to exploit the 12.5 trillion cubic feet (Tcf) of recoverable reserves has so far been concluded with Iran.

Reportedly, a portion of Farzad-B field extends into territorial waters controlled by Saudi Arabia. Saudi Arabia has already drilled wells on the area falling in its territory, which it has named Hasbah field, and has begun production. The two fields are connected, with the area falling in Iranian territory holding larger share of 12.5 Tcf of recoverable reserves while the Saudi territory has only 3 Tcf or so. But the two fields are connected and whosoever is able to movefirst would extract more benefits.

According to the reports, it was expected that Prime Minister Narendra Modi’s visit to Tehran today and tomorrow may see finalizing of a contract, giving developmental rights of Farzad-B field to ONGC Videsh Ltd, the overseas subsidiary of ONGC. But Iran is yet to agree to US$ 4.3 billion development plan submitted by OVL.

Oil and gas stocks languished in red today, with ONGC and HPCL leading the losses.

Moving on to news from mining sector. According to a leading economic daily, Vedanta Resources plans to ramp up aluminum production from Jharsuguda and Korba smelters of Bharat Aluminum Co to 1.5 million tonnes (mt) from 0.9 mt this financial year.

Oil prices slipped in Asian trade on a strong dollar and signs that global crude supply is holding up even as volumes hit by unplanned outages rise to at least 5-year highs.

Shares of Power Grid surged 2.6% to Rs.148 on BSE. The company will replace BHEL in the BSE Sensex index from June 20. Following the development, shares of BHEL slipped 0.6% Rs.118 on BSE.

USDINR trade today trading up 4 paise at 67.40 per US dollar.

Out of 1,394 stocks traded on the NSE, 839 declined and 508 advanced today.

Top 5 Nifty Gainers: NTPC (2.98%), Tata Motors (1.62%), Cipla (1.09%), ICICI Bank (1.06%) and Reliance Ind. (1.05%).

Top 5 Nifty Losers: ONGC (-1.44%), BHEL (-1.35%), Adani Ports & Sez (-1.10%), Sun Pharma (-1.08%) and L&T (-1.03%),

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May 23

Daily Market Commentary : 20 May 2016

Its gets worst for the Indian equity market as indices extended losing streak to second consecutive trading session. Nifty ended below the 200-DMA however, just managed to close at the 7,750 mark. Nifty closed with a loss of 34 points at 7,750 while Sensex ended with a loss of 97 points at 25,301.

Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.1%, while the Hang Seng led the Shanghai Composite lower. They fell 0.67% and 0.02% respectively. European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.55%, while London’s FTSE 100 is off 1.38% and France’s CAC 40 is lower by 0.88%.

ITC gained 1.6% to Rs.329.95 on BSE. The company posted a net profit of Rs.24952 million for the quarter ended March 31, 2016 as compared to Rs.23611.80 million for the quarter ended March 31, 2015.

Lupin crashed 9.1% to Rs.1,505.15 on BSE. The stock was the top Nifty loser today. The pharma company posted a net profit after taxes and minority interest of Rs.8070.80 mn for the quarter ended March 31, 2016 whereas the same was at Rs.5470.10 mn for the quarter ended March 31, 2015.

Esab India jumped 3.6% to Rs.580 on BSE. The company reported a net profit of Rs.9.37 crore in the quarter ended March 2016 as against net loss of Rs.1.38 crore during the previous quarter ended March 2015.

SpiceJet cracked 10.4% at Rs.71.30. The company posted a quarterly profit of Rs.73.2 crore in the fourth quarter of 2015-16 on higher operational income. During the March quarter of 2015-16, the airline’s operational income rose to Rs.1,474 crore from Rs.790 crore in the same period a year ago.

GHCL rallied 7.3% to Rs.155.35 after the company reported its Q4 net profit stood at Rs.79 crore.The total income for the quarter was at Rs.650.4 crore.

Pidilite Industries climbed 6% to Rs.653. The company reported 48.97% increase in standalone net profit to Rs.115.04 crore for the March quarter.

Maruti Suzuki closed 0.51% to Rs.3,947. The company said that it will inspect suspected fault in 20,427 S-Cross vehicle, as per reports. The automobile firm will suspect fault and replace brake part in 20,427 units of S-Cross.

A total of 18 stocks registered a fresh 52-week high in trades today, whereas 39 stocks touched a new 52-week low on the NSE.

USDINR trade today trading down 7 paise at 66.43 per US dollar.

Out of 1,396 stocks traded on the NSE, 988 declined and 365 advanced today.

Top 5 Nifty Gainers: ITC Ltd (3.67%), Adani Ports & Sez (1.80%), Bharti Airtel (1.36%), Tata Motors (1.26%) and ICICI Bank (1.11%).

Top 5 Nifty Losers: CIPLA (-1.66%), Infosys Ltd (-1.21%), HDFC (-1.18%), Sun Pharma (-1.17%) and ONGC (-0.92%),

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May 20

Daily Market Commentary : 19th May 2016

Stock market in India extended losing streak to third consecutive trading session on 19th May 2016. After opening with a negative gap, indices kept losing ground gradually, the decline was led by capital goods, FMCG, energy, banking, metals and oil & gas stocks. Even the mid cap and small cap stocks were not spared. Selling aggravated as the day progressed, not a single sectoral index on the BSE ended in the green. Nifty closed with a loss of 87 points at 7,783 while Sensex ended with a loss of 305 points at 25,400.

Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.1%, while the Hang Seng led the Shanghai Composite lower. They fell 0.67% and 0.02% respectively. European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.55%, while London’s FTSE 100 is off 1.38% and France’s CAC 40 is lower by 0.88%.

Most of the power stocks finished weak with Adani Power and Torrent Power leading the losses. Shares of Torrent Power nosedived 12% after the company’s net profit for the quarter ended March 2016went down by over 95%.

According to a leading financial daily, Tata Power’s100% subsidiary – Tata Power Renewable Energy (TPREL) has won two solar grid connected photovoltaic projects of 50 MW capacity each in Pavagada Solar Park in the Tumkur district of Karnataka.

The projects have been awarded through open category under the Jawaharlal Nehru National Solar Mission (JNNSM) Phase-II Batch-II Tranche-I under ‘State Specific Bundling Scheme’. TPREL has received the Letter Of Intent to develop the projects and will sign a 25 year Power Purchase Agreement with NTPC Vidyut Vyapar Nigam. Tata Power finished the day down by 2.1% on the BSE.

Meanwhile, shares of Power Grid Corporation of India finished the trading day on an optimistic note (up 0.6%) after it was reported that the company has operationalized its ultra-high voltage 1200 kV National Test Station (NTS) at Bina in Madhya Pradesh. This will help the company in increasing power carrying capacity. Reportedly, the 1,200 kV station has five to six times more power carrying capacity than the 400 kV stations for transmission of power.

The power sector is going through troubled times. The State Electricity Boards (SEBs) that buy power from generators are reeling under huge losses and bloated debt. The government program ‘Ujwal Discom Assurance Yojana’ (UDAY) for SEBs holds hope to revitalize the power sector (Subscription Required). This is because unlike the previous bail-out packages that were provided for debt restructuring, the UDAY offers a framework for the long-term revamp of SEB operations.

USDINR trade today trading down 36 paise at 66.33 per US dollar

Out of 1,811 stocks traded on the NSE, 1,073 declined and 465 advanced today.

Top 5 Nifty Gainers: Lupin Ltd (1.43%), Wipro (0.70%), Tata Motors (0.70%), Maruti Suzuki (0.32%) and TCS (0.20%).

Top 5 Nifty Losers: Adani Ports & Sez (-6.14%), SBI (-4.05%), L&T (-3.24%), HDFC (-2.61%) and GAIL (-2.50%),

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