Jan 21 | 3:50 pm

Sensex, Nifty off morning highs at close

The Sensex and the Nifty gave up some of their morning gains to settle lower at the close on Monday. The Sensex finished at 36,578, up 192 points or 0.53 per cent higher on its previous close. The Nifty settled at 10,961, up 54 points or 0.50 per cent higher.

The top gainers on the Sensex were Reliance, Kotak Bank, Sun Pharma, Bajaj Finance and Infosys, while the laggards were Hero MotoCorp, YES Bank, Maruti, Power Grid, Bajaj Auto and SBI.

 

Jan 21 | 3:35 pm

European shares stumble on weak Chinese growth numbers

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London's FTSE 100 rose 0.7 percent, outperforming European shares. File Photo

European shares slipped on Monday from six-week highs after China's fourth-quarter growth figures confirmed a slowdown in the world's second-biggest economy with 2018 its weakest year since 1990. Read the European markets report in full here.

Jan 21 | 3:02 pm

Sensex, Nifty maintain firm undertone

Both the Sensex and the Nifty maintained their firm undertone to hold gains of more than 0.50 per cent in late session on Monday.

The Sensex was trading at 36,631 points, up 245 points or 0.67 per cent higher. The NIfty was quoting at 10,974 points, a gain of 0.62 per cent or 67.75 points.

The top gainers on the Sensex were Reliance, Bajaj Finance, Sun Pharma, Kotak Bank and Infosys, while the laggards were Hero MotoCorp, YES Bank, Maruti, ONGC and Tata Motors.

Jan 21 | 2:55 pm

Union Bank posts net profit of Rs 153 cr

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Higher other income and a lower burden of loan loss provisions helped Union Bank of India report a net profit of Rs 153 crore in the quarter ended December 31, 2018, against a net loss of Rs 1,250 crore in the year-ago period. Read the Union Bank results report in full here.

Jan 21| 2:30 pm

Dollar firm amid sharp slowdown in Chinese growth

The dollar held near a two-week high on Monday, shrugging off concerns about weakening global growth and data showing China's economy slowed sharply in 2018. Read the full dollar report here.

Jan 21 | 2:15 pm

Kotak Mahindra Bank profit climbs 23%

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Kotak Mahindra Bank had sought that the Mumbai High Court quash and set aside the RBI directions to dilute promoter stake

 

Kotak Mahindra Bank on Monday reported a 23 per cent rise in third-quarter net profit, helped by higher interest income and a write-back of provisions made for mark-to-market losses. Net profit came in at Rs 1,291 crore ($181.20 million) for the three months to December 31, compared to Rs 1,053 crore a year earlier and roughly in line with analysts' average estimates of a profit of Rs 1,271 crore, according to I/B/E/S data from Refinitiv. Read the Kotak Mahindra Bank results report in full here.

Jan 21 | 1.49 pm

Rupee strengthens to 71.26 against the dollar

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The rupee strengthened to 71.26 to the dollar in the afternoon session on Monday. Earlier, the rupee weakened by 26 paise to 71.45 against the US dollar in early trade, on increased demand for the American currency from importers amid rising crude prices and foreign fund outflows. Read the rupee report in full here.

Jan 21 | 1. 40 pm

Farm support measures to push states’ fiscal deficit to 3.2%: India Ratings

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Loan waiver and other support measures for farmers are expected to raise the aggregate fiscal deficit of states to 3.2 per cent in the current fiscal i.e. 2018-19, a research agency said here on Monday. Read the full report on the impact of farm support on states' fiscal deficit here.

Jan 21 | 1.26 pm

Sensex, Nifty hold firm

The Sensex and the Nifty held firm in the afternoon session on Monday. The Sensex was up 0.66 per cent or 241 points higher at 36,627 points, while the Nifty was at 10,967, up 60 points or 0.55 per cent higher.  The top gainers on the Sensex were Reliance, Sun Pharma, Kotak Mahindra Bank, Infosys and Bajaj Finance, while the losers were Hero MotoCorp, YES Bank, Bajaj Auto, Maruti and ONGC.

 

Jan 21 | 12.26 pm

Nifty call: Go long on dips with stop-loss at 10,930

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The Nifty 50 futures contract has begun the week on a strong note. The contract opened at 10,930 and surged to make an intra-day high of 11,003. The contract has come-off from this high and is currently trading at 10,975. The decisive break above 10,950 has turned the short-term outlook positive. Read the Nifty call report here.

Jan 21 | 12.15 pm

Gold steady

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Gold prices held steady on Monday as expectations that the US Federal Reserve will pause its multi-year interest rate hike cycle were offset by a recovery in investor appetite for risk. Read the gold report in full here.

Jan 21 | 12.05 pm

China's 2018 growth slows to 28-year low, more stimulus seen

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China's economy cooled in the fourth quarter under pressure from faltering domestic demand and bruising US tariffs, dragging 2018 growth to the lowest in nearly three decades and pressuring Beijing to roll out more stimulus to avert a sharper slowdown. Read the full report on slowing growth in the Chinese economy .

 

Jan 21 | 11.56 am

Sensex, Nifty rule firm

The Sensex was trading at 36,625, up 238 points or 0.66 per cent higher at mid-session on Monday. The Nifty was trading at 10.964, up 57 points or 0.53 per cent higher.

Reuters adds: Shares rose on strong earnings announced by the large-caps, with Reliance Industries extending gains to a second day, while a weaker rupee supported IT stocks.

In broader Asia, markets kept calm as data showed the Chinese economy slowed at the end of last year, underlining the urgent need for more stimulus as Beijing wrestles with the United States over trade.

“The market momentum has continued into this week,” said Siddhartha Khemka, head of retail research at Motilal Oswal Securities. “Stocks, especially heavyweights, have gained on the back of last week's good quarterly numbers, and that has buoyed the sentiment.”

The NSE index saw its best week since mid-December on Friday, posting a weekly gain of 1.04 percent.

Reliance Industries climbed 3.2 per cent to its highest since October 3 in its second session of gains after reporting record quarterly numbers. The stock accounted for the biggest share of gains in the indexes.

The rupee weakened as oil prices climbed to 2019 highs, giving IT stocks a lift.

Infosys Ltd rose 2.7 per cent to its highest since October 3, while Tata Consultancy Services Ltd, up for a fifth straight session, advanced 1.7 per cent.

Wipro Ltd fell as much as 3.6 per cent after it forecast a soft March quarter in terms of IT services revenue.

Sun Pharmaceutical Industries Ltd, which had tumbled over 14 per cent last week on reports of a fresh whistle-blower complaint, rose as much as 4 per cent on Monday.

HDFC Bank, India's biggest lender by market value, rose 1.6 per cent to a near 25-week high after reporting a 20.31 per cent rise in third-quarter net profit.

Larsen & Toubro Ltd dropped 3.4 per cent to its lowest since October 31 after SEBI advised the company against proceeding with its proposed share buyback worth Rs 9,000 crore.

Jan 21 | 11.51 am

Reliance Ind hits high; technicals suggest further upside

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The Reliance Industries stock hit a 3-1/2 month high and technicals suggest further upside for it.

The country’s biggest listed firm by market value, Reliance Industries gained as much as 2.96 per cent to Rs 1,219.4 in the morning session, its highest since October 3. At 11.45 am the stock was trading firm at Rs 1,223.50, up Rs 40.55 (+3.43%) on the BSE. Read the RIL stock movement report in full here.

 

Jan 21 | 11.13 am

LIC to have 5 representatives on IDBI Bank board

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Following the completion of the acquisition of 51 per cent controlling stake by the Life Insurance Corporation of India (LIC) in IDBI Bank, the life insurance behemoth will have five representatives on the bank's board, while the government will have two. Read the full report on IDBI Bank board structure here.

Jan 21 | 10: 45 am

Oil rises to 2019 highs on strong China demand

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OPEC-led supply cuts also support crude prices.

Oil prices rose to their highest for 2019 on Monday after data showed refinery processing in China, the world's second-largest oil consumer, climbed to a record in 2018, despite a slowing economy last year. Prices are further being supported by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC), analysts said. Read the crude oil market report here.

Jan 21 | 10: 40 am

Re depreciates 26 paise against dollar

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The rupee weakened by 26 paise to 71.45 against the US dollar in early trade Monday on increased demand for the American currency from importers amid rising crude prices and foreign fund outflows.

At the interbank forex exchange, the rupee opened lower at 71.38 and weakened further to quote 26 paise down at Rs 71.45 against the dollar. Read the rupee report in full here.

Jan 21 | 10.35 am

Asian stocks calm as China slows, awaits Brexit news

Asian markets kept their nerve on Monday as data showed the Chinese economy slowed at the end of last year, underlining the urgent need for more stimulus as Beijing wrestles with the United States over trade. Read the Asian stocks report in full here. 

Jan 21 | 10.30 am

Dollar steady near 2-week high

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The dollar hovered near a two-week high against a basket of currencies on Monday, supported by a sustained recovery in investor risk appetite which nudged US bond yields higher. The dollar index, which measures its strength against a group of six major currencies, was steady at 96.315 after climbing to 96.394 per cent on Friday, its strongest since January 4. Read more on the dollar report here.

Jan 21 | 10.20 am

Sensex, Nifty trade firm

The Sensex and the Nifty ruled firm in the morning session on Monday, with the Sensex quoting at 36,651 points, up 0.73 per cent or 264 points higher. The Nifty was quoting at 10,978 points, up 0.66 per cent or 71 points higher.

PTI adds: The Sensex was lifted by continued buying in select bluechips by domestic investors amid a positive cues from other Asian bourses.

Sectoral indices led by healthcare, IT, auto, FMCG, power and oil & gas advanced up to 0.57 per cent.

Brokers said, besides sustained buying by domestic investors on encouraging Q3 earnings from bluechip companies, a firming trend at other Asian markets on easing of US-China trade tensions, dovish commentary from the Federal Reserve and efforts in China to support the slowing economy, influenced trading sentiments here.

Meanwhile, domestic institutional investors (DIIs) sold shares worth a net of Rs 124.91 crore, while foreign institutional investors (FIIs) offloaded shares to the tune of Rs 97 crore on Friday, as per provisional data.

Major gainers included Sun Pharma, RIL, Infosys, Bajaj Finance, Bharti Airtel, Tata Motors, Yes Bank, TCS, HUL, Tata Steel, NTPC, ICICI Bank, HCL Tech, Asian Paint, Vedanta, ITC, M&M, Maruti Suzuki and HDFC Bank, rising up to 3.02 per cent.

Among the Asian bourses, Hong Kong’s Hang Seng was up 0.19 per cent, Japan’s Nikkei rose 0.45 per cent, Taiwan gained 0.74 per cent and Shanghai Composite Index was up 0.68 per cent in late morning trade Monday.

The US Dow Jones Industrial Average ended 1.38 per cent higher on Friday.

 

Jan 21 | 10.10 am

Why we choose active funds

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In the Portfolio Ideas column dated December 24, 2018, we had discuss why it is difficult to choose active funds. Readers responded that they prefer active funds despite the risk of picking a fund that could eventually underperform its benchmark index or peers. We believe that they are behavioural reasons behind such a response. Click here to find out why you may be behaviourally motivated to choosing an active fund .

Jan 21 | 10.05 am

FD Watch: Jana Small Finance Bank: A good option to optimise your returns

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Looking for the best interest rates among fixed deposits? You can consider small finance banks (SFB) as they offer relatively higher interest rates than most public and private sector banks. Though interest rates from SFBs are similar to or lower than what is being offered by a few non-banking financial companies (NBFCs), the risk factor is higher in the latter. Apart from the usual credit risk, the recent liquidity crisis faced by the NBFC segment pegs up the risk. Read more on the interest offered by SFBs.

 

Jan 21 | 10.00 am

Investment School: Ways of charting the markets

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Where is the stock price, crude oil or the rupee headed? This is a common question asked by financial market players. Technical analysis is a method that studies the price action in the market in order to forecast future price movement. This method primarily uses charts as a major tool for forecasting the prices. Click here for more insights on charting the markets .

Jan 21 | 9:55 am

Home Truths: Shifting sands of construction

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Sand is typically derived from natural resources such as river beds. But demand has been increasing and natural sources (which take many years to form) are running out. For instance, in Andhra Pradesh, the estimated annual demand for sand was about 200 lakh cubic metres in 2016, while production of river sand was about 100 lakh cubic metres. Read more on the use of sand in construction and the alternatives before us .

Jan 21 | 9:50 am

Sensex, Nifty move up higher

The Sensex and the Nifty traded firm in the opening session of the week. While the Sensex had notched up gains of 245 points or 0.67 per cent to trade at 36,631 points in early session, the Nifty was trading at 10,960, up 53 points or 0.49 per cent higher.

Jan 21 | 9:35 am

Legally Yours: A check on unregulated deposits

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With bank deposit interest rates nothing to write home about, the promise of higher returns which many alternative investment options provide, is too tempting to resist. But while instruments from non-banking finance companies, corporates, housing finance companies, etc. are governed by RBI, the National Housing Bank or the Ministry of Corporate Affairs to safeguard the interest of investors, many Ponzi schemes go below the radar of all watchdogs. Read more on unregulated deposits here .

Jan 21 | 9:30 am

Save Smart: How ELSS scores over PPF

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The onset of the tax-saving season has restarted the debate over ELSS vs PPF. Here is a comparison .

Jan 21, 2019 | 9:25 am

Real Returns: Do dividends make a difference?

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Most Indian investors buy stocks hoping to create mega wealth from capital appreciation. Investing for dividends, they feel, is for wimpy folk. They’re also convinced that only mature companies in the sunset of their lives will pay high dividends, while ‘good’ companies reinvest every rupee of their profits into business expansion. But a study of the BSE 500 companies over the past 10 years shows that investors could be losing out significantly by holding on to such mistaken notions. Read more on whether dividends make a diifference here.

Jan 21, 2019 | 9:20 an

Meet the expert: ‘Finance theory needs a revolution’

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The simple often leads to much better results than the complex, says Gerd Gigerenzer, Director, Harding Center for Risk Literacy, Max Planck Institute for Human Development. Speaking with The Hindu BusinessLine at CFA Society India ‘9th India Investment Conference’, Gigerenzer explains the importance of heuristics and why less is often more. Read more on Gigerenzer thoughts on finance theory here .

Jan 21, 2019 | 9:15 am

Sensex, Nifty open in positive territory

The benchmark indices the Sensex and the Nifty opened the week in the green. The Sensex was quoted at 36,467, up 0.22 per cent or 80 points higher than its previous close. The Nifty was trading at 10,909, up 2.65 points or 0.02 per cent higher.

Jan 21, 2019 | 9:10 am

Big Story: Debt instruments on the exchanges

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Those who invest in the equity market have to brace themselves for volatility this year, as the general elections, tightening liquidity conditions, slowing corporate earnings and uncertainty surrounding Brexit and other global events are likely to make stock prices whipsaw. In this scenario, debt instruments may be a reasonably sound alternative. Read more on the prospects for debt instruments in the Big Story .

Jan 21| 9: 10 am

Index Outlook: Indices may move with a bullish bias

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After a strong rally last Tuesday, the key benchmark indices — the Sensex and the Nifty — remained passive in a narrow band. The weakening of the rupee against the dollar and the rally in global crude oil prices are negative for the market. The on-going third-quarter earnings announcements of blue-chip stocks can keep the markets choppy in the ensuing week; there is also the interim budget to watch out for.  Click here to read more on the market moving factors this week .

Jan 21, 2019 | 9:00 am

Trading Guide for week beginning Jan 21, 2019

SBI (295.2)

After inching higher for five consecutive weeks, SBI reversed lower last week. The stock made an intra-week high of ₹306.4 and came-off from there, giving back the gains, and closed 2.4 per cent lower for the week. A key near-term support is at ₹293. Whether SBI breaks below it or not will decide the direction of the next move. If SBI declines decisively below ₹293, it can fall initially to ₹290. A further break below ₹290 will bring renewed pressure on the stock. Such a break will then increase the likelihood of the stock falling towards ₹285 and ₹280 over the short term. On the other hand, if SBI manages to bounce from ₹293, an upmove to revisit the ₹305-₹307 resistance zone is possible. A break above ₹307 can target ₹310 and ₹312 thereafter. A further break above ₹312 will then increase the likelihood of the stock testing the crucial ₹320-₹322 long-term resistance zone. As being reiterated in this column over the last few weeks, the price action around the ₹320-₹322 resistance region will need a close watch which would give a cue on the next trend.

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ITC (₹290.0)

After surging over 5 per cent, ITC fell last week. The stock was down 1.8 per cent for the week. Immediate supports are at ₹287.5 and then in the ₹286-₹285 region. Though a dip in the near-term to test these supports cannot be ruled out, the downside is likely to be limited. The stock will come under pressure only if it declines below ₹285 decisively. But a fall below ₹285 looks unlikely at the moment as fresh buyers are likely to emerge at lower levels. A bounce from the ₹286-285 support zone can trigger a fresh rally toward ₹297 and ₹301 — key short-term resistance levels. Inability to breach ₹301 can pull the stock lower to ₹295 or ₹290. But the overall outlook remains positive. As such, an eventual break above ₹301 will see the stock rallying towards ₹308 and ₹310 in the coming weeks. A further break above ₹310 will then increase the likelihood of the stock extending its up-move towards ₹320 and ₹325 over the medium term. Investors who have taken long positions at ₹282 and ₹278 can hold it. Retain the stop-loss at ₹262.

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Infosys (₹731)

Infosys opened with a wide gap-up and witnessed a strong rally last week. The stock was up 7 per cent for the week. It surged breaking above the psychological level of ₹700 and has closed on a strong note. The strong rally above ₹700 last week indicates that the downtrend that was in place since October has ended. Near-term support is at ₹720. Also, there is an inverted head and shoulder pattern visible on the daily chart. This is a bullish reversal pattern. The neckline support is around ₹700, which is likely to limit the downside in the short term. A revisit of ₹750 levels is likely in the near term. Inability to breach ₹750 can trigger an intermediate pull-back move to ₹720 or lower. But a strong break above ₹750 will boost the momentum. Such a break will then increase the possibility of the stock targeting ₹800 and ₹810. Traders with a medium-term perspective can buy on dips at ₹722, ₹715 and ₹710. Stop-loss can be placed at ₹678 for the target of ₹805. Revise the stop-loss higher to ₹735 as soon as the stock moves up to ₹765.

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RIL (₹1,182.9)

RIL surged about 8 per cent last week. The strong up-move has taken the stock well above the key resistance level of ₹1,050. The immediate resistance in the ₹1,200-1,210 zone is likely to be tested in the near term. Inability to breach this hurdle can trigger a pull-back move to ₹1,150 or ₹1,140. The outlook will turn negative only if RIL declines below ₹1,140. The next target is ₹1,100. But such a fall below ₹1,140 looks less probable at the moment as fresh buyers may emerge at lower levels. A range-bound move between ₹1,140 and ₹1,200 can be seen for some time. An eventual break above ₹1,210 will then increase the likelihood of the stock rallying towards ₹1,250. Such a rally will boost the momentum and keep the bias positive from a medium-term perspective. It will also increase the possibility of the stock revisiting ₹1,300 and ₹1,350 levels. Medium-term investors can hold the long positions taken at ₹1,125 and ₹1,095 with a revised stop-loss at ₹1,135. Move the stop-loss further higher to ₹1,185 as soon as RIL moves up to ₹1,205. Book profits at ₹1,245.

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Tata Steel (₹470.5)

Tata Steel inched lower to close in red for the fourth consecutive week. The stock was down 0.8 per cent. The pace of fall seems to be slowing down as the stock is heading towards the crucial long-term support zone of ₹460-430. The stock can continue to remain subdued. A dip to test the ₹460-430 support zone cannot be ruled in the short term. The price action in the coming weeks will need a close watch. As mentioned last week, whether Tata Steel manages to bounce from the ₹460-430 support zone or not will be key in deciding the direction of the next move. A bounce from this support zone can trigger a corrective rally initially to ₹480 and ₹485. A further break above ₹485 will see the relief rally extending towards ₹500 or even ₹525. On the other hand, a fall below ₹430 will see the stock declining towards ₹410 and ₹400. Such a fall will be bearish from a long-term perspective. It will then increase the possibility of the stock tumbling further to revisit ₹300 levels over the long term.

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