Live Markets Commentary
Sify Editors @ 15:45PM
Sensex ends 44 points up ahead of RBI policy review
Key Indian stock indices Sensex and the Nifty50 pared most of their intraday gains and ended just marginally up on Monday, with the mood turning a bit cautious in the closing minutes, as investors looked ahead to the central bank's monetary policy meeting.
The Reserve Bank of India's Monetary Policy Committee will decide on policy rates on Wednesday, and it is widely expected that the bank will cut the repo rate by 25 - 50 basis points. The bank had cut the repo rate by 25 basis points the last time around. Besides the call on interest rates, the bank's statement about India's growth outlook post demonetization move by the government, and its projection on inflation will set the trend for the market.
The Sensex ended up 43.66 points or 0.17% at 26,392.76, after having rallied to 26,502.43 earlier in the session. The Nifty50, which rose to 8178.70, ended at 8143.15, gaining 14.40 points or 0.18%.
In the forex market, the rupee was trading at 67.95 against the US dollar around late afternoon, up 0.4% from its previous close of 68.22.
Among rate sensitive stocks, those from the realty space had a good outing. Automobile and bank stocks found support early on, but gave up most of their gains as the session progressed. Capital goods stocks too ended off their highs.
Oil stocks gained in strength. A few stocks from metal and power sector ended on a firm note. Information technology and healthcare stocks turned in a mixed performance, while consumer durables and FMCG stocks traded weak.
The market breadth was slightly positive. On BSE, 1537 stocks moved up. 1128 stocks declined and 147 stocks ended flat.
Dabur India (Rs 280.70) may drift down a bit in the near term. The company expects some near term pressure on business following the demonetization move by the government. One can avoid fresh buying in the stock, if looking at near term.
Sensex up 131 pts; Rate sensitive stocks in focus ahead of RBI policy
The market, which opened on a firm note this morning on global cues, remains fairly well placed in positive territory around mid afternoon, thanks to sustained buying in select blue chip stocks.
Ahead of the central bank's monetary policy review, shares from rate sensitive banking, automobile and realty sectors are in focus. Capital goods, metal and oil stocks are trading higher.
The Sensex is up 131.30 points or 0.5% at 26,480.40. The Nifty50 of the National Stock Exchange is up 43.75 points or 0.54% at 8172.50.
There are expectations that the Reserve Bank of India's Monetary Policy Committee will cut the repo rate by 25 - 50 basis points on Wednesday, when the bank's monetary policy review is due.
The apex bank had cut the repo rate by 25 basis points in its previous meeting, even as it left other rates unchanged.
With the government's demonetisation move significantly hampering consumption, it is widely expected that there will be a reduction in policty rates tomorrow. In the event of the central bank deciding against a reduction, then the market might well see a slide of sorts and stocks from realty, automobile and capital goods sectors would be among the ones bearing the brunt of selling pressure.
Going forward, further reductions may not happen in the foreseeable future and especially so, if there is a 50-basis points cut in the repo rate tomorrow.
Besides the rate decision, the central bank's view on the economy, the near term growth outlook and inflation projection will hold the key for the market's direction for the rest of the week, if not beyond that.
Today, even as realty stocks are having a good outing, activity in automobile and banking sectors remains a bit stock specific and movements in these sections are a bit sluggish. The BSE Realty index is up nearly 2%, while the Bankex and Auto indices are up 0.6% and 0.25%, respectively.
Among realty stocks, Oberoi Realty is gaining 4.3%, Unitech, HDIL and Sobha are up 3.3% each, DLF is gaining nearly 3% and NBCC is up 1.75%. Indiabulls Real Estate and Godrej Properties are also sharply higher, while Omaxe is up with a modest gain. Prestige is up marginally.
Among the stocks in the Bankex, Federal Bank and Yes Bank are up 2% and 1.75%, respectively. State Bank of India and Kotak Bank are up more than 1%, while IndusInd Bank, Bank of Baroda and ICICI Bank are modestly higher. Punjab National Bank, HDFC Bank and Axis Bank are down marginally.
Automobile stocks Eicher Motors, Hero Motocorp, Maruti Suzuki, Bajaj Auto and Mahindra & Mahindra are slightly weak, while Ashok Leyland and Tata Motors are up in positive territory, gaining 1.5% and 1%, respectively.
Among the stocks in the Oil & Gas index, Petronet LNG, Indraprastha Gas, Indian Oil Corporation, Hindustan Petroleum Corporation, BPCL, GAIL India and ONGC are up 1.2% - 3%. Castrol India, Oil India and Reliance Industries are modestly higher.
Tata Power, which has risen over 2.7%, looks poised for an upmove following the company's strategic engineering division securing a defence order worth over Rs 200 crore.
Sun TV down sharply, while Raj Television extends gains
Sun TV Network, which saw some hectic buying in the previous session, is down nearly 3% on profit taking. The stock ended at Rs 492.60 on Monday, gaining more than 13%.
At Rs 478, the stock is down nearly 3% now. Over 7.13 million shares have changed hands so far at the Sun TV Network counter on the National Stock Exchange today. Sun TV is owned by Kalanidhi Maran, a grand nephew of DMK President M Karunanidhi.
However, Raj Television Network, which too ended with a hefty gain on Monday, is trading firm with a strong gain of 2.9% at Rs 70.90. The stock rose to Rs 76.45 this morning, but came off that high soon due to profit taking.
Both these stocks had risen on Monday as news about worsening health condition of Tamil Nadu Chief Minister Jayalalithaa was flashed across the media.
The markets have gained for a second straight session on Tuesday as gains in Asian markets and expectations of an interest rate cut by the RBI aided sentiment.
Asian stocks posted their biggest rise in two weeks, with MSCI's broadest index of Asia-Pacific shares outside Japan breaking two days of falls to gain 0.8 percent.
Back home, the Reserve Bank of India is expected to cut interest rates at its monetary policy meeting after Prime Minister Narendra Modi's currency crackdown rattled the economy, according to a Reuters poll.
The RBI's recently formed Monetary Policy Committee is forecast to cut the repo rate by 25 basis points to 6.00 percent when it concludes its two-day meeting on December 7, according to the poll of nearly 60 economists this week.
"After yesterday's short covering, there is some consolidation now," said Anand James, chief market strategist at Geojit BNP Paribas Financial Services.
Markets are supported by an expectation that there will be populist measures to ease the demonetisation pain, James said, adding that a 25 basis points cut in rates is largely expected.
Modi's outlawing of high-value bank notes last month, aimed at curbing corruption and tax evasion, has left the nation's 1.2 billion population scrambling to exchange old notes for new and left many companies' cash-reliant supply chains in tatters.
The move has also raised concerns of a sharp slowdown in the economic growth of the fastest growing major country in the world.
Among the gainers, Tata Power Co Ltd rose as much as 3.6 percent to hit its highest in nearly a month after the company's strategic engineering division received a defence order worth more than 2 billion rupees ($29.4 million).
Consumer stocks ITC Ltd and Hindustan Unilever Ltd fell about one percent each, after gaining more than 1.5 percent on Tuesday.
Sify Editors @ 3:20 PM
Buy Bharat Forge is looking at medium term. Increase exposure at sharp declines.
Sify Editors @ 3:00 PM
Sun TV, Raj Television spurt on huge volumes
Sun TV Network is up nearly 12% at Rs 487.50. The stock has surged on strong volumes today, amid reports about the deteriorrating health condition of Tamil Nadu Chief Minister Jayalalithaa. Sun TV is owned by Kalanidhi Maran, a grand nephew of DMK leader M Karunanidhi.
Shares of Raj Television Network are also up sharply. The stock is trading nearly 14% up at Rs 67.55. On BSE, the Raj TV counter has clocked a volume of 0.8 lakh shares, substantially higher than the average daily volume of 1787 shares.
On the National Stock Exchange, Raj Television Network is up 17.5% at Rs 67.90. Around 4.56 lakh shares have been traded so far at the Raj TV counter on the exchange.
On the National Stock Exchange, the Sun TV Network counter has clocked a volume of around 8.65 million shares so far in the session. On BSE, the Sun TV Network counter has recorded a volume of around 8.31 lakh shares, nearly 12 times its average daily volume of about 0.76 lakh shares.
Sify Editors @ 2:40 PM
Buy Balkrishna Industries for the target price of Rs 1213.
Sify Editors @ 2:20 PM
Buy Gujarat State Petronet for the target price of Rs 175.
Sify Editors @ 2:00 PM
Buy Eicher Motors for the target price of Rs 25880.
Sify Editors @ 1:40 PM
Buy Sadbhav Engineering for the target price of Rs 312.
Sify Editors @ 1:20 PM
KEC International looks good for medium to long term. Stay invested in the stock and add small quantities at declines.
Sify Editors @ 12:50 PM
Sensex down 75 points as weakness persists
Amid cautious trades and highly lackluster movements, the Indian stock market is down in negative territory a little past noon today, after having opened on a sluggish note.
Weakness in global markets and persisting worries about near term economic growth continue to weigh on sentiment.
The Sensex is down 74.51 points or 0.28% at 26,156.15. The Nifty50 of the National Stock Exchange is down by about 21 points or 0.26% at 8065.85.
Sify Editors @ 12:30 PM
Buy Power Finance Corporation for medium term gains. Add on dips. For short term, hold with a stop loss 110.
Sify Editors @ 12:00 PM
Dr Reddy's Laboratories retreats after rallying from lower levels
Dr Reddys Laboratories Ltd has announced the launch of Nystatin and Triamcinolone Acetonide Cream, USP in the U.S. Market.
The generic had U.S. sales of about $119 million MAT for the most recent twelve months ended October 2016, data from IMS Health shows.
Shares of Dr Reddy's Laboratories Limited are currently flat at Rs 3178. The stock rose to Rs 3191.60 earlier, after having declined to Rs 3124 in opening trades.
Dr Reddys Laboratories had reported a net profit of Rs 313.2 crore for the quarter ended September 30, 2016 as compared to Rs 682.6 crore for the quarter ended September 30, 2015. Total income decreased from Rs 2980 crore for the quarter ended September 30, 2015 to Rs 2691.4 crore for the quarter ended September 30, 2016.
On consolidated basis, DRL posted a net profit of Rs 308.9 crore in the September 2016 quarter, down from Rs 774.7 crore in the year-ago quarter.
Sify Editors @ 11:30 AM
Stay invested in ITC (Rs 230) if looking at medium to long term. Add at declines. Keep a stop loss around Rs 210 for near term.
Sify Editors @ 11:00 AM
Buy Dabur India (Rs 287) and add more at declines. For near term, keep a stop loss around Rs 273.
Sify Editors @ 10:25 AM
BGR Energy is trading 4.4% up at Rs 118 on strong results. The stock rose to Rs 120.90 in early trades.
BGR Energy reported a net profit of Rs 11 crore for the quarter ended September 2016. That was 37.5% up from the net profit of Rs 8 crore it had recorded in the year-ago quarter. Total income in the second quarter was down 0.7% at Rs 827.6 crore, compared to the corresponding quarter in 2015-16.
Sify Editors @ 9:45 AM
Sun TV Network up sharply on strong volumes
Amid reports the Tamil Nadu Chief Minister J Jayalalithaa is back in intensive care unit of a leading private hospital in Chennai, following a cardiac arrest on Sunday evening, shares of Kalanidhi Maran-owned Sun TV Network Limited are being lapped up in the market this morning.
Sun TV Network shares rose to Rs 466.10 on fairly strong volumes and despite having retreated from that level, are still firmly entrenched in positive territory at Rs 458, up 4.75% from last week's closing price. On the National Stock Exchange, the Sun TV Network counter has clocked a volume of over 2.2 million shares so far this morning.
On BSE, Sun TV Network is trading at Rs 458, up 4.7%. The stock rose to Rs 466.85 in opening trades, gaining nearly 7%. The Sun TV Network counter on BSE has clocked a volume of around 1.4 lakh shares so far this morning, nearly twice its average daily volume of 76,000 shares.
Interestingly, some leading analysts and brokerages had recommended a 'sell' on Sun TV Network shares last week.
Sify Editors @ 9:15 AM
Sensex down marginally amid cautious trades
The Indian stock market is trading lower Monday morning, with investors treading cautiously, tracking weak global cues.
The euro's slide to a twenty-month low due to rising worries about Italy's financial sector, and fears about an imminent interest rate hike in the U.S. are weighing on the market.
The BSE benchmark Sensex, which declined to 26,151.16, losing nearly 80 points in the process, is currently down 20.06 points or 0.08% at 26,210.60. The Nifty50 of the National Stock Exchange is down 2.40 points or 0.03% at 8084.40, after scaling a high of 8103.30 and a low of 8071.90.
In the forex market, the rupee rose to 68.13 againt the U.S. dollar, hitting a 2-week high. On Friday, the rupee had closed at 68.23 a dollar.
Automobile and FMCG stocks are trading higher, while stocks from rest of the sectors are exhibiting a mixed trend.
Automobile stocks Tata Motors, Eicher Motors, Mahindra & Mahindra, Bajaj Auto, Ashok Leyland and Hero Motocorp are up 1% - 1.5%. Maruti Suzuki is trading 0.7% up.
|Cities||Gold (10g)||Silver (1Kg)|
|Chennai||Rs. 29016.04||Rs. 41055.00|
|Mumbai||Rs. 29946.52||Rs. 41055.00|
|Delhi||Rs. 29839.57||Rs. 41055.00|
|Kolkata||Rs. 29401.07||Rs. 41055.00|
|Kerala||Rs. 28877.01||Rs. 41055.00|