Jayant Manglik, President Retail Sales, Religare Securities
The benchmark indices pared early gains and witnessed continued selling pressure for the third straight consecutive session. India’s Q2 GDP data came in line with market expectations, but it failed to lift the market amid fiscal deficit and rising crude prices concerns. The broader market indices also reacted in line with the frontline index. All the major sectoral indices ended in red with metal, oil&gas, consumer durables and auto being the top losers.
In the near term, market may remain volatile given RBI policy next week and US Fed meet in the second week of December. With steady reform implementation and improved corporate earnings, India would continue to remain a preferred investment destination for FIIs and DIIs despite its premium valuations compared to other emerging markets. However, we advise traders to avoid overleveraging and keep their positions hedged until the outcome of RBI policy.
3:45 PM Top Sensex gainers and losers
3:40 PM Markets at close
The S&P BSE Sensex ended at 32,832, down 316 points, while the broader Nifty50 settled at 10,121, down 104 points.
UFO Moviez India dipped 7% to Rs 453 on the BSE after reporting 44% decline in net profit at Rs 11.3 crore in September quarter (Q2FY18), due to lower operational revenue. The company had a profit of Rs 20 crore in the same quarter last year. CLICK HERE FOR MORE
Q2 GDP growth raises some hope, but meeting FY18 forecast still not easy
The Indian economy has to grow by at least 7.5 per cent in each of the remaining two quarters of the current financial year, if it has to come anywhere near the various growth forecasts made by different agencies. This is one message policy makers cannot ignore while they interpret the economic growth numbers for July-September 2017, released by the Central Statistics Office on Thursday. READ FULL ANALYSIS
3:05 PM Top five Nifty losers in last leg of trade
3:00 PM Markets check
At 3:00 pm, the S&P BSE Sensex was trading at 32,889, down 259 points, while the broader Nifty50 was ruling at 10,143, down 83 points.
Ashok Leyland zooms ahead in November
Automobile major Ashok Leyland has reported a 54 per cent jump in medium and heavy commercial vehicle (M&HCV) sales in November at 10,641 units over last year’s count of 6,928 units.
Light commercial vehicle (LCV) sales rose by 44 per cent to 3,819 units, from 2,646 units a year ago. READ MORE DETAILS
2:45 PM Nifty Auto trades lower
BSE Smallcap index hits new high
The S&P BSE Smallcap index hit a new high of 18,411 in early morning trade on Friday on back of strong rally in pharmaceuticals, information technology (IT), restaurants, auto ancillary and consumer discretionary stocks. The index surpassed its previous high of 18,324.83, touched on November 29, 2017 in intra-day trade on the BSE. READ FULL REPORT
2:04 PM Markets check
At 2:00 pm, the S&P BSE Sensex was trading at 33,064, down 85 points, while the broader Nifty50 was ruling at 10,205, down 21 points.
Volume growth to spice up gains for Jubilant, Westlife
Stocks of quick service restaurants Westlife Development, Jubilant FoodWorks and Speciality Restaurants have been hitting their 52-week highs this week on expectations that improving demand and new offerings will sustain volume growth going ahead.
This, coupled with the recent trigger of revisions in the goods and services tax (GST) rate to five per cent from the earlier 18 per cent should help bring down overall prices. READ FULL ANALYSIS
Edelweiss Securities on Q2 GDP
Real GVA for Q2FY18 came in at 6.1% YoY (Edelweiss expectation: 6.4%) vs 5.6% in the previous quarter. The uptick from previous quarter was mostly led by revival in manufacturing after sharp slowdown seen in last few quarters, suggesting that effect of temporary disruptions (GST/DeMon related) is waning. However, one area where weakness continues to linger is construction activity, which grew less than 3% even after stagnating in last two quarters. What is also worth highlighting is the considerable slowdown in the government services/spending during the quarter (government front-loaded the expenditure in Q1FY18).
Going ahead, we expect further pick up in GDP numbers, helped by supportive base effect and some revival in exports. However, construction weakness is persisting longer than we anticipated and chances of scale-back in government expenditure are rising amid weaker than anticipated revenues. Accordingly, we are revising our FY18 GVA growth forecast to 6.5% from 6.8% earlier.
Existing investors may hold on to dynamic bond funds
Investment advisors were recommending dynamic bond funds to investors till as recently as August, when the Reserve Bank of India (RBI) had cut the repo rate by 25 basis points. These are funds where the fund manager changes the average duration of the portfolio actively to benefit from interest-rate changes. They are marketed as all-weather funds. Many of those who followed the experts’ advice would be a worried lot today. READ FULL ANALYSIS
4 IPOs rally up to 125% after subdued listing in 2017
PSP Projects, Eris Lifesciences, Tejas Networks and Security and Intelligence Services (India) (SIS) rallied up to 125% against their issue price after making a weak debut on the bourses during the calendar year 2017 (CY17).
Except Tejas Networks, which gained 2.5%, the market price of the remaining three companies remained below their respective issue prices on the first day of their listings.
The strong financial performance and positive corporate announcements led the rally in these stocks post their listings. READ MORE
Representative Image (Photo: Shutterstock)
Infosys buyback: A chance for small shareholders to cash out
The Rs 13,000-crore share buyback programme of Infosys commenced on Thursday. Eligible shareholders can tender their shares till December 14, the last day of the buyback.
The buyback price offered by the company is Rs 1,150. Therefore, investors can pocket 18 per cent more upside (at current market rate) by tendering their shares. The entitlement ratio for retail shareholders works out to 28 per cent. In other words, 28 shares of those holding 100 shares will get accepted in the buyback.
However, an investor can even tender 100 per cent of their shares. If eligible shareholders abstain from participation, the entitlement ratio goes up. READ MORE
Asia's factory growth robust in Oct on electronics demand, China at risk
Asia's major manufacturing economies saw their fastest expansion in factory activity in years last month, driven by robust demand for electronics and firming the case for central banks in the region to shift to tighter monetary policy next year.
A raft of mostly strong factory activity surveys released on Friday comes a day after the Bank of Korea became the first major central bank in Asia in three years to raise interest rates.
The tightening marks a potential turning point for the region with Malaysia and the Philippines among central banks that could lift rates next year. READ MORE
Growth outlook for remaining part of FY18 is not without risks
GDP growth seems to be changing course, rising 6.3% in the second quarter ended September 30, 2017, after five straight quarterly declines.
The pace is expected to quicken in the ongoing second half, which would crank up India’s GDP growth for this fiscal to 6.8%.
The drivers in the second half will be a low-base effect (growth had slipped to 6.5% in the second half of last fiscal), dissipating impact of demonetisation, and gradual stabilisation of the GST regime. READ MORE
12:01 PM Market Check
GST rate cut boosts Nov manufacturing PMI to 52.6, fastest since Oct 2016
India's manufacturing sector in November recorded the strongest improvement in business activity in 13 months as new orders picked up supported by reduction in GST rates and strong demand conditions, a monthly survey said today.
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose from 50.3 in October to 52.6 in November, indicating substantial improvement of operating conditions in the country's manufacturing sector.
This is for the fourth consecutive month that the index has come in above 50 point mark that separates expansion from contraction. READ MORE
Agro Tech Foods surges 30% in two days on FPI buying
Agro Tech Foods rallied 9% to Rs 682, extending its Thursday’s over 15% surge on the National Stock Exchange (NSE), after the foreign portfolio investor (FPI) bought the stake in agricultural products company through open market.
The stock hit a 52-week high in intra-day trade, zooming 30% in the past two trading sessions from Rs 526 on Wednesday, as compared to 1% decline in Nifty 50 index.
On Thursday, November 30, 2017, Samsung India Securities Master Investment Trust (Equity) purchased 200,000 equity shares of Agro Tech Foods at Rs 620.93 per share on the NSE, the bulk deal data shows. READ MORE
Bitcoin rally has more steam left, says CLSA's Chris Wood
Despite the stellar 900% return thus far in calendar year 2017 (CY17), rally in bitcoin and other cryptocurrencies has more steam left, says Christopher Wood, managing director & equity strategist at CLSA.
One reason for the up move continuing going ahead, Wood cites in his weekly note GREED & fear, is that the retail participation has just started to kick in, which will keep the cryptocurrency story alive. That said, he does not believe cryptocurrencies replacing gold bullion anytime soon. READ MORE
Nissan sues India over outstanding dues; seeks over $770 mn
Japanese automaker Nissan Motor has begun international arbitration against India to seek more than $770 million in a dispute over unpaid state incentives, according to a person familiar with the matter and documents reviewed by Reuters.
In a legal notice sent to Prime Minister Narendra Modi last year, Nissan sought payment of incentives due from the Tamil Nadu government as part of a 2008 agreement to set up a car manufacturing plant in the southern state.
According to the notice, Nissan said repeated requests to state officials for the payment, due in 2015, were overlooked and even a plea by the company's chairman, Carlos Ghosn, to Modi in March of last year seeking federal assistance did not yield any results. READ MORE
10:55 AM Top Sensex gainers and losers
10:37 AM Market Check
M&M Financial hits 52-week high after QIP launch
Mahindra & Mahindra (M&M) Financial Services hit a 52-week high of Rs 461, up 5% on the BSE in early morning trade, after the company launched its qualified institutional placement (QIP) issue on Thursday.
M&M Financial Services has fixed floor price of Rs 439.63 per share, almost same against Thursday’s closing price of Rs 439.65. The company said may offer a discount of not more than 5% on the floor price.
The board of directors of the company at its meeting held on November 1, 2017 approved the issuance of up to 24 million equity shares of Rs 2 each through QIP. It proposed to raise about Rs 1,000 crore. READ MORE
Indian stock markets now 8th-biggest in the world
India is now home to the world’s eighth-biggest stock market, overtaking Canada for the first time in almost a decade. The score: India $2.29 trillion, Canada $2.28 trillion.
Mumbai’s total stock market capitalisation hasn’t exceeded Toronto’s since January 21, 2008, when the S&P BSE Sensex plunged as concern grew that a global financial crisis was taking hold. Since then, India’s market swelled by $800 billion as investors flocked to a nation where the government boosted consumption through a job-guarantee plan, streamlined the indirect-tax system and opened more industries to foreigners. READ MORE
HDFC board approves HDFC AMC IPO, to hold 50% post public offer
The board of HDFC Asset Management Co Ltd on Thursday gave its approval to begin the process for launching an initial public offering (IPO) of India’s second-biggest mutual fund manager by assets, according to a stock exchange filing.
Standard Life Aberdeen Plc and mortgage lender Housing Development Finance Corp Ltd will own a minimum 24.99 per cent and 50.01 percent, respectively, in HDFC AMC post IPO, subject to regulatory approvals. READ MORE
9:42 AM Top sectoral gainer: Nifty Realty
9:31 AM Sectoral Trend
9:23 AM Top Sensex gainers and losers
9:18 AM Broader Markets
In broader markets, BSE Midcap and BSE Smallcap indices were trading higher by 0.3% and 0.4% respectively
9:17 AM Markets open
Benchmark indices opened higher after the economic growth recovered to more than 6% in the July-September quarter, backed by strong manufacturing, allaying doubts about disruptions caused by the goods and services tax (GST).
At 9:17 am, the S&P BSE Sensex was trading at 33,234, up 85 points, while the broader Nifty50 index was ruling at 10,260 up 34 points
Derivative strategy on Jain Irrigation by HDFC Securities
Buy JAIN IRRIGATION December 120 call at Rs 6
Stop loss: Rs 4
Few trading ideas for today's trade by Prabhudas Lilladher:
BUY JINDAL STEEL
CMP: Rs 171.80
TARGET: Rs 187
STOP LOSS: Rs 164
CMP: Rs 233.25
TARGET: Rs 255
STOP LOSS: Rs 222
CMP: Rs 416.70
TARGET: Rs 455
Nifty outlook by Prabhudas Lilladher:
Markets face intense selling with Sensex losing by 450 points while Nifty tumbling by a huge 135 points and close below the 10,250 mark on the expiry day of F&O segment. The support for the day is seen at 10,170 while resistance is seen at 10,270.
Remove long-term capital gains tax exemption: BSE
BSE is making a case for reinstating of long-term capital gains (LTCG) tax on equity investments.
According to sources, the BSE has made a presentation to the Union finance ministry that LTCG exemptions cause huge revenue loss to the government and also lead to market manipulation. LTCG is tax-exempt on the sale of listed securities, since 2005. This had made India one of the most liberal markets in this regard, the BSE said in a presentation last Friday. READ MORE
Govt doesn't recognise cryptocurrency as legal: Arun Jaitley
With virtual currency gaining traction among investors, Finance Minister Arun Jaitley on Thursday said India does not recognise crypto currency as legal tender.
"Recommendations are being worked at. The government's position is clear, we don't recognise this as legal currency as of now," Jaitley said.
Bitcoin loses over a fifth of its value in less than 24 hours
Bitcoin slid to as low as $9,000 in volatile trade on Thursday, having lost more than a fifth of its value since hitting an all-time high of $11,395 on Wednesday.
OPEC, allies set to agree oil cut extension to 2018 end
OPEC and non-OPEC oil producers look poised to agree on Thursday to extend output cuts until the end of 2018 to finish clearing a global glut of crude while signalling they could exit the deal earlier if the market overheats.
Growth of eight core sector industries unchanged at 4.7% in October
Eight core sectors grew at a slower pace of 4.7% in October, chiefly due to subdued performance of cement, steel and refinery segments.
The eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- had clocked a growth of 7.1% in October last year.
Meanwhile, the industry ministry has revised downwards September growth print of these eight sectors to 4.7% from the earlier estimate of 5.2%. READ MORE
GDP growth rate rises to 6.3% in September quarter
The country’s economic growth recovered to more than 6% in the July-September quarter, backed by strong manufacturing, allaying doubts about disruptions caused by the goods and services tax (GST).
This was a break with five quarters of declining trends in growth, but India remained behind China in economic expansion.
It was destocking in the first quarter of 2017-18 due to pre-GST jitters that had pulled down gross domestic product (GDP) growth to a more than three-year low.
GDP rose 6.3% in the quarter ended September, higher than the 5.7% in the previous one on improved investment and steady demand, the data from the Central Statistics Office showed on Thursday. READ MORE
The Nifty50 futures on the Singapore Stock Exchange were trading 1 points lower at 10277 indicating a flat opening for the domestic market.
8:47 AM Asian markets pare morning gains
Asian markets pared earlier gains after the US Senate on Thursday delayed voting on a Republican tax overhaul as the bill was tripped up by problems with an amendment sought by fiscal hawks to address a large expansion of the federal budget deficit projected to result from the measure.
US markets end higher as S&P closes at record high
The S&P closed at a record high and the Dow Jones Industrial Average broke above the 24,000 mark for the first time on Thursday. The Dow Jones Industrial Average rose 331.67 points, or 1.39%, to 24,272.35, the S&P 500 gained 21.51 points, or 0.82%, to 2,647.58. The Nasdaq added 49.63 points, or 0.73%, to 6,873.97.
8:46 AM Good Morning!
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First Published: Fri, December 01 2017. 15:38 IST