Friday, 18 November 2016

Nifty nears 6-month low; shuts below 8,100 mark

The Indian equity market declined for the fourth consecutive session. A sharp plunge in the rupee against the dollar and exception of strong foreign capital outflows after hints of rate hike in December by US Federal Reserve Chairwoman, Janet Yellen dampened the market sentiment. The Sensex dropped over 100 points during the last trading session while the broader Nifty-50 hit a 6-month low. The domestic market posted its worst week since February 12.

Moreover, the prevailing cash crunch following the government’s demonetisation decision has severely impacted select sectors such as real estate, consumer goods and metal. Besides, a mixed trend on other Asian bourses also influenced the trading momentum. Prices of few key commodities have fallen considerably since the move was announced amid drying up of demand. Also, fears have risen regarding production of the key commodities as farmers are not getting enough cash to buy seeds for winter crops.

The 30-share index closed down 77 points, or 0.30%, at 26,150.24. The BSE Sensex opened at 26,270, touched an intra-day high of 26,349 and low of 26,118.

The NSE Nifty closed with a loss of mere six points at 8,074. The NSE Nifty opened at 8,097 hitting a high of 8,129 and low of 8,048.

Among the 50-stocks of Nifty, NTPC, Eicher Motors, Sun Pharma, Bharti Airtel, Hero MotoCorp and Ambuja Cements were among the gainers on NSE, whereas Zee, Asian Paints, Tata Steel, Bharti Infratel, GAIL and TCS were among the losers today.

Today’s decline was led by the metal, consumer durables, banking, FMCG, finance and technology stocks, while oil & gas, realty, power, pharma and telecom were among the gainers.

The India VIX (Volatility) index was down 4.83% at 17.8050. Out of 1,367 stocks traded on the NSE, 610 declined and 714 advanced today. The BSE Midcap and Smallcap indices ended up in the range of 0.2-0.6%.

The rupee was trading down 34 paise at 68.15 per US dollar.

Asian markets closed mostly lower on Friday, with the Japanese market leading gains on the back of a relatively weaker yen, helping shares of the country's big exporters. At the close in Tokyo, the Nikkei gained 0.58% to hit a new 6-month high. Hang Seng closed marginally higher, whereas Shanghai Composite slipped 0.5%.

European indices are trading in red.  The FTSE 100 and CAC 40 were trading down by 0.4% each, while DAX is marginally lower.

Meanwhile, IT stocks continue to reel under pressure for the third straight day after Nasscom revised the IT sector’s growth forecast downwards to 8-10 per cent this year, as its biggest members such as TCS, Wipro, and Infosys struggle to grow faster because of an uncertain environment.

Punj Lloyd gained 2.6% to Rs 19.55 on NSE after the company said that its wholly-owned subsidiary executed definitive agreements with India Power Green Utility to co-develop 30 megawatts of solar assets.

Dilip Buildcon advanced 1.6% after the company announced that Northern Coalfields (M.P) has declared DBL-DECO (a joint venture of the Company) as the successful bidder (L1) for Excavation of Overburden of First Dig (Solid) and Re-handling by Mechnical Means at specified places at NIGAHI OCP of NCL at a project cost of Rs 1,469.8 crore.

Career Point rose 1%. The company has acquired 1,68,000 fully paid up equity shares 40% of Rs 10 each of Gyan Eduventure Pvt. Ltd., the subsidiary of the Company and consequently, Gyan Eduventure Pvt. Ltd. has now become a wholly owned subsidiary of the Company.

Canara Bank gained 2.6% after the bank has revised deposit interest rates in different maturities in retail and bulk deposits in the range of 5bps to 25 bps and these are effective from November 21, 2016.

IL&FS Transportation Networks advanced 1% after the company announced that the joint venture of the Company and IL&FS Engineering and Construction Co in the ratio of 51:49, has emerged as the Lowest Bidder for the development of two road projects of Madhya Pradesh Road Development Corporation under Madhya Pradesh District Road II Sector Project. The company had quoted an amount of Rs 213.5 crore for Project I and Rs 161.7 crore for Project 2 respectively. The construction period for Project 1 is 730 days and Project 2 is 548 days.

Deepak Fertilisers dropped 6.2%.  The company reported a net profit of Rs 26.96 crore for the quarter ended September 30, 2016 against Rs 28.31 crore in the corresponding quarter last year.

Petronet LNG climbed 8.3%.  The company's net profit of Rs 460 crore in July-September is 82% higher than the Rs 253 crore net profit in the same period a year ago.

Reliance Industries rose 1% after the company entered into a global partnership agreement with GE to enter into the Industrial Internet of Things (IIOT) space by building joint applications on the latter's Predix platform.

A total of eight stocks registered a fresh 52-week high in trade today, whereas 56 stocks touched a new 52-week low on the NSE.

Sensex, Nifty choppy; Metal, FMCG drag

The BSE Mid-cap Index is trading up 0.55% at 12,066, whereas BSE Small-cap Index is trading down 0.03% at 11,836. The INDIA VIX is down 4.52% at 17.8625. Out of 1,851 stocks traded on the NSE, 742 declined, 783 advanced and 349 remained unchanged today.

The domestic market fluctuated between gains and losses as extended decline in consumer durables and select auto stocks countered a rally in energy producers. The Nifty50 opened below the 8,100 mark.

At 11:14 AM, the S&P BSE Sensex is trading at 26,240 up 12 points, while NSE Nifty is trading at 8,088, up by a mere eight points.

The BSE Mid-cap Index is trading up 0.55% at 12,066, whereas BSE Small-cap Index is trading down 0.03% at 11,836.

NTPC, ONGC, Bajaj Auto, GAIL, M&M, HDFC, RIL and Maruti Suzuki are among the gainers, whereas Tata Motors, Dr Reddy's, Sun Pharmaceuticals, ITC, Adani Ports, Wipro are losing sheen on BSE.

Some buying activity is seen in oil & gas, power and energy sectors, while consumer durables, auto, banking, finance and telecom sectors are showing weakness on BSE.

The INDIA VIX is down 4.52% at 17.8625. Out of 1,851 stocks traded on the NSE, 742 declined, 783 advanced and 349 remained unchanged today.

A total of two stock registered a fresh 52-week high in trade today, while 39 stocks touched a new 52-week low on the NSE.

The Indian rupee opened lower by 18 paise at 68/$ against Friday's close as against the previous close of 67.81/$. The rupee fell to its lowest level since June 24.

Asian markets opened mixed with currency weakness hitting most indices. The Japanese yen hit 110 to the US$ & led the gainers with the Nikkei index scaling 18,000 while the South Korean won led the Kospi index lower. Expect the volatility to settle down by next week as the markets adjust to the new reality of higher bond yields globally as cost of money rises.

The economic data of the US seems to justify a rate hike ‘relatively soon’ says Fed Reserve Chair Janet Yellen, who intends to serve out her full term in office. Japanese Prime Minister Shinzo Abe is set to meet US President-elect Donald Trump in New York today. Fitch Ratings warned about the uncertainty created by Trump’s campaign rhetoric, stating talks of a more unilateral foreign policy are particularly significant given US status as the world’s biggest economy and a key diplomatic and military power.

RBI has decided to expand the list of eligible debt instruments foreign portfolio investors (FPIs) are allowed to invest in and included unlisted securities such as non-convertible debentures (NCDs) and bonds issued by public or private companies.

Parliament paralysis is back in India as the political slugfest continued over the demonetisation move even as the Opposition demanded the prime minister’s presence in the Rajya Sabha.

Nifty below 8,100 mark

The S&P BSE Sensex is trading at 26,159 down 69 points, while NSE Nifty is trading at 8,075, down by a mere five points.

The BSE Mid-cap Index is trading up 0.26% at 12,031, whereas BSE Small-cap Index is trading down 0.32% at 11,802.

NTPC, ONGC, Bajaj Auto, GAIL, M&M, HDFC, RIL and Maruti Suzuki are among the gainers, whereas Tata Motors, Dr Reddy's, Sun Pharmaceuticals, ITC, Adani Ports, Wipro are losing sheen on BSE.

Some buying activity is seen in oil & gas, power and energy sectors, while consumer durables, auto, banking, finance and telecom sectors are showing weakness on BSE.

The INDIA VIX is down 3.24% at 18.1025. Out of 1,851 stocks traded on the NSE, 755 declined, 661 advanced and 435 remained unchanged today.

A total of one stock registered a fresh 52-week high in trade today, while 26 stocks touched a new 52-week low on the NSE.

The Indian rupee opened lower by 18 paise at 68/$ against Friday's close as against the previous close of 67.81/$. The rupee fell to its lowest level since June 24.

Asian markets opened mixed with currency weakness hitting most indices. The Japanese yen hit 110 to the US$ & led the gainers with the Nikkei index scaling 18,000 while the South Korean won led the Kospi index lower. Expect the volatility to settle down by next week as the markets adjust to the new reality of higher bond yields globally as cost of money rises.

The economic data of the US seems to justify a rate hike ‘relatively soon’ says Fed Reserve Chair Janet Yellen, who intends to serve out her full term in office. Japanese Prime Minister Shinzo Abe is set to meet US President-elect Donald Trump in New York today. Fitch Ratings warned about the uncertainty created by Trump’s campaign rhetoric, stating talks of a more unilateral foreign policy are particularly significant given US status as the world’s biggest economy and a key diplomatic and military power.

RBI has decided to expand the list of eligible debt instruments foreign portfolio investors (FPIs) are allowed to invest in and included unlisted securities such as non-convertible debentures (NCDs) and bonds issued by public or private companies.

Parliament paralysis is back in India as the political slugfest continued over the demonetisation move even as the Opposition demanded the prime minister’s presence in the Rajya Sabha.