In a volatile session on Dalal Street, the benchmark indices tumbled from record high levels to snap their three-day winning run amid losses in RIL, IT stocks and select banking counters. Despite a firm global market sentiment, the Indian indices settled in the red as profit taking ensued following a steep rally in the indices which saw them hitting significant landmarks.
After touching a record high of 59,737, the BSE barometer Sensex plunged 721 points from the high to end at 59,016, down 125 points. At the same time, its NSE counterpart Nifty50 settled the day 44 points down at 17,585. The 50-pack index had touched record peak of 17,793 in morning session. However, on the weekly basis, the benchmark indices gained, thus taking their winning run to the fourth straight week.
The fall was more pronounced in the broader markets. The BSE Midcap index sank 1.14 per cent and BSE Smallcap index 1.06 per cent, thus, underperforming benchmark Sensex. Overall, the advance-decline ratio on BSE stood at nearly 1:2, indicating that for every one share that rose, two declined.
Sectorally, PSU Bank index tanked the most among all sectors, reversing strong gains that were seen on Thursday amid expectations that FM Nirmala Sitharaman would announce National Asset Reconstruction Company Ltd (NARCL) that would acquire bad loans in an attempt to resolve them. While the announcement did come, investors preffered to take profits off the table, pushing the index 2.96 per cent lower.
It was closely trailed by Nifty Media & Realty that shed 2.38 per cent and 2.35 per cent, respectively. On the other hand, Nifty Media, Nifty Financial Services, Nifty Bank and Nifty Private Bank were the gainers. Nifty Auto setlled the day unchanged.
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Market bulls rode the global momentum on Dalal Street on Friday, hitting new lifetime highs on the way. Bond yields in the US and Euro zone fell, with German 10-year yields set for their biggest fall this year, as investors bet on ultra-lose monetary policy to stay in place.
Backed by firm global cues, the frontline S&P BSE Sensex hit an all-time-high of 52,641.5 while the broader Nifty50 index claimed 15,835.5-mark in morning deals. In the broader markets, the BSE MidCap and SmallCap indices, too, touched new peaks of 23,045 and 25,249 levels, respectively.
That said, a fag-end weakness in banking, realty, and FMCG counters dragged the markets off highs. By close, the BSE barometer was at 52,475 levels, up 174 points or 0.33 per cent while the 50-share Nifty index ended at 15,799 levels, up 62 points or 0.39 per cent.
The BSE MidCap index, on the other hand, closed 0.14 per cent up while the BSE SmallCap index ended 0.4 per cent higher.
Sectorally, the Nifty Metal index zoomed nearly 3 per cent on the NSE, followed by the Nifty IT and Pharma indices, up over 1 per cent higher each. On the downside, the Nifty Realty and PSU Bank indices slipped up to 1 per cent.
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Extending their decline into fourth straight day, benchmark indices ended the week with over 1 per cent cut on the back of losses in Eicher Motors (7 per cent), Nestle India (5.3 per cent), Divis Labs (5.4 per cent), and Cipla (5 per cent).
On Friday, though, the frontline S&P BSE Sensex nurses losses of 435 points, or 0.85 per cent, to end the day at 50,890 levels. In the intra-day trade, the index tanked 800 points from the day’s high to hit a low of 50,624. Only 11 of the 30 constituents ended the day in green with ONGC (down 5 per cent), SBI and Axis Bank (down 3.5 per cent each), ICICI Bank (3 per cent), Baja Auto (2.6 per cent), and Maruti Suzuki (2 per cent) being the top losers.
Gains in Dr Reddy’s Labs (2.3 per cent), IndusInd Bank (2 per cent), HUL (1.7 per cent), and RIL (0.7 per cent) trimmed losses.
On the NSE, the Nifty50 index gave up the 15,000-mark and settled at 14,982 levels, down 137 points or 0.9 per cent. It hit an intra-day low of 14,898.
The broader markets, too, gave up their winning ways today and ended in the red. The S&P BSE MidCap index underperformed on the BSE and 1.7 per cent down today. The SamllCap counterpart, meanwhile, settled at 0.7 per cent down.
Sectorally, none of the indices ended in the green zone today. The Nifty PSU bank index ended as the top laggard on the NSE, down 4.7 per cent, after surging nearly 6 per cent each over the past two days. That apart, Nifty Metal, Bankm and Auto indices skid 2 per cent each.
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A healthy buying in auto, technology, and select bank stocks helped benchmark indices settle in the green on Friday.
The S&P BSE Sensex settled 127 points, or 0.31 per cent higher at 40,686 levels while NSE’s Nifty ended at 11,930, up 34 points, or 0.28 per cent. The volatility index, India Vix, slipped over 3.5 per cent to 21.82 levels.
On a weekly basis, Sensex gained 1.75 per cent while Nifty added 1.42 per cent.
Auto major Maruti (up over 4 per cent) ended as the biggest gainer on Sensex while UltraTech Cement (down over 2 per cent) was the top loser.
The broader market continued to outperform frontline indices. The S&P BSE MidCap index gained 0.59 per cent while the S&P BSE SmallCap index rallied 0.7 per cent to 15,135 levels.
Among sectoral indices, Nifty Auto gained nearly 3 per cent to 8,095 levels.
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Benchmark indices once again failed to hold on to the day’s high levels on Friday and pared most of its gains at the end of the session, amid selling in financial, auto and metal stocks. However, oil-to-telecom behemoth Reliance Industries (RIL) and FMCG giant Hindustan Unilever (HUL) helped the indices to settle in the positive territory.
The S&P BSE Sensex ended at 31,642.70, up 199 points or 0.63 percent, with HUL (up nearly 5 percent) being the top gainer and NTPC (down nearly 4 percent) the biggest loser.
On the NSE, the benchmark Nifty ended at 9,251.50, up 52 points or 0.57 percent. Volatility index, India VIX, declined nearly 3.5 percent to 38.53 levels.
In the broader market, the S&P BSE MidCap index ended flat at 11,423.81 while the S&P BSE SmallCap index slipped 0.45 percent to 10,638.70 levels.
Shares of Cyient were locked in a 10% lower circuit on lower-than-expected Q4 results. A combined 2.65 million equity shares had changed hands on the counter and there were pending sell orders for around 82,000 shares on the NSE and BSE. The stock of the IT consulting and software firm was trading close to its 52-week low of Rs 200 touched on April 28, 2020.
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The benchmark indices ended on a positive note on Friday after two consecutive sessions of losses, lifted by a sudden surge in the last 15 minutes on a day when the indices remained rangebound for the majority of the duration.
The S&P BSE Sensex ended at 38,862.23, up 177.51 points, or 0.46 per cent, with Tata Steel being the top gainer and State Bank of India being the biggest loser. About 1,500 shares advanced, 1,049 shares declined, and 165 shares remained unchanged.
The NSE’s Nifty50 index closed above 11,650 level at 11,665.95, up 68 points, or 0.59 per cent.
Metal stocks advanced the most, followed by realty and IT counters. The Nifty Metal index ended almost 2 per cent higher at 3,132.35.
On a weekly basis, the S&P BSE Sensex ended 0.49 per cent higher while the NSE Nifty 50 gained 0.36 per cent on a weekly basis.
In the broader market, the S&P BSE Midcap index surged 97 points or 0.63 per cent to close at 15,509. The S&P BSE SmallCap rose 108 points or 0.72 per cent to end at 15,046.
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Verdict: A ‘no-brainer’ Buy
IPO Snapshot:
HDFC Asset Management Company (AMC) Limited is entering the primary market on Wednesday 25th July 2018, with an offer for sale (OFS) of up to 2.55 crore equity shares of Rs.5 each, by both the promoters, HDFC (34% of OFS) and UK’s Standard Life (66% of OFS), in the price band of Rs. 1,095 to Rs. 1,100 per share. Representing 12.01% of the post issue paid-up share capital, total issue size is Rs. 2,800 crore at the upper end of the price band. The issue closes on Friday 27th July and listing is likely on 6th August, which will be the 5th listing from HDFC stable.
Company Overview:
HDFC AMC, 56.97% subsidiary of HDFC Ltd, with foreign JV partner UK’s Standard Life owning 37.98% stake, is India’s second largest AMC (behind ICICI Prudential) with asset under management (AUMs) of Rs.2.91 lakh crore (31-3-18) and 13.7% market share. Company is the largest AMC with equity oriented funds (at 51.3% of AUM vis-à-vis industry average of 43.2%), which also helps it become the most profitable AMC in India, having earned net profit of Rs. 722 crore in FY18 or 18.1% market share of the industry PAT, due to higher fees earned in equity as against debt product. Thus, with only 13.7% market share in total AUM, 16.8% market share in actively managed equity-oriented AUM help the company garner 18.1% market share in net profits of the industry, comprising of 42 players. Besides high profitability, company also enjoys benefit of retailisation of portfolio, with 62% AUM coming from retail investors, unlike industry average of ~50%, again highest market share in retail AUM of 15.7%. Systematic investment plan (SIP) products, with average ticket size of Rs. 3,800, also provide high revenue visibility, as 77% of company’s SIPs are signed up for 5 years.
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Benchmark indices dropped on Friday tracking global markets, while metal and pharma stocks pulled down the indices ahead of elections in the key state of Karnataka.
The S&P BSE Sensex ended at 34,915, down 188 points while the broader Nifty50 index settled at 10,618, down 61 points.
Among sectoral indices, the Nifty Metal index was trading over 1% lower led by a fall in shares of Hindustan Zinc and Hindalco. The Nifty IT index, too, was down led by a fall in shares of Mindtree and Wipro. Among the FMCG counters, ITC, Emami, GSK Consumer slipped over 2% on the NSE.
Pharma stocks pushed both indices lower, with the Nifty Pharma index falling over 1.5%.
Bajaj Auto, Mahindra & Mahindra (M&M), ITC, Reliance Industries (RIL), Mahindra & Mahindra Financial Services (MMFS) and JSW Steel are the six stocks that Morgan Stanley is betting on in India to play its ‘growth at reasonable price’ (GARP) investment strategy.
An Indian jeweller that saw its market worth reach $3.6 billion at the start of the year is now floundering at about a quarter of that value after one of its founders gifted some shares to family members, raising concern about the company’s governance. PC Jeweller Ltd. slumped by about half after the company said last week that one of its founders P.C. Gupta made the gifts through off-market transactions. The stock has plunged 75 per cent from a record on January 19, taking its market capitalization to Rs 58.3 billion ($873 million). It climbed 21 per cent to Rs 146.85 as of 12.31 p.m. in Mumbai on Friday.
Realty firm Godrej Properties on Friday reported over two-fold jump in its consolidated net profit at Rs 1.41 billion for the January-March quarter of last financial year on higher sales. Its net profit stood at Rs 625.9 million in the year-ago period, the company said in a filing to the BSE.
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Benchmark indices ended flat on Friday, as investors remained cautious after sentiment soured on renewed fears of a trade war after US President Donald Trump proposed more tariffs on China.
Back home, the Reserve Bank of India (RBI) on Thursday adopted a remarkably dovish tone, surprising analysts who were expecting the firming up of rates in the medium term, even as one of the six members in the Monetary Policy Committee (MPC) voted for a hike in an otherwise status quo policy.
The S&P BSE Sensex ended at 33,627, up 30 points while the broader Nifty50 index settled at 10,331, up 6 points.
Reliance Communications Ltd (RCom) said on Friday it received the National Company Law Appellate Tribunal’s (NCLAT) approval to proceed with the sale of its tower and fibre business.
Shares of public sector bank were in focus for the second straight day with Nifty PSU Bank index nearly 1%, extending its Thursday’s 5% surge, after the Reserve Bank of India (RBI) maintained status quo on the key short-term borrowing rate in its first bi-monthly monetary policy for the financial year 2018-19 (FY19) on Thursday.
Punjab National Bank (PNB), Allahabad Bank, Oriental Bank of Commerce, Bank of Baroda, Union Bank of India, Bank of India and Canara Bank were up in the range of 1% to 4% on the National Stock Exchange (NSE).
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IPO Snapshot:
HDFC Standard Life Insurance is entering the primary market on Tuesday 7thNovember 2017, with an offer for sale (OFS) of up to 29.98 crore equity shares of Rs. 10 each, by both the promoters HDFC (64% of OFS) and Standard Life (36% of OFS), in the price band of Rs. 275 to Rs. 290 per share. Representing 14.92% of the post issue paid-up capital, OFS will raise Rs. 8,695 crore at the upper price band and will close on Thursday 9th November. Listing is likely on 17th November.
Company Overview:
HDFC Standard Life, HDFC’s 61.21% subsidiary, with 34.75% owned by foreign partner Standard Life, is India’s 3rd largest private sector life insurer, after ICICI Pru and SBI Life, based on market share of 16.5% among private insurers, on FY17 total premium.
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