Sensex, Nifty end higher

Closing bell

Extending its winning streak to the sixth consecutive session, the BSE Sensex gained over 70 points as stocks made further headway powered by unabated foreign fund inflows and narrowing country’s trade deficit amid positive global cues.

The 30-share benchmark advanced to hit a high of 38,369.59 as buying activity gathered momentum. However, investors locked in gains pushing the key index into the negative zone to hit a low of 37,952.10 before bouncing back to end 70.75 points, or 0.19 per cent, higher at 38,095.07.

Likewise, the 50-stock NSE Nifty finished 35.35 points, or 0.31 per cent, higher at 11,462.20 after hitting the day’s high of 11,530.15 and a low of 11,412.50.

Investor sentiment remained upbeat on narrowing trade deficit and sustained foreign fund inflows buoyed investor sentiment, according to market experts. The marginal 2.44 per cent increase in exports as well as lower imports of gold and petroleum products in February significantly narrowed the country’s trade deficit to USD 9.6 billion, data released by the commerce ministry Friday showed.

India’s merchandise exports rose to USD 26.67 billion in February from USD 26.03 per cent in the year-ago month mainly on account of higher shipments in sectors such as pharmaceutical, engineering and electronics.

On a net basis, foreign institutional investors (FIIs) bought shares worth a net of Rs 4,323.49 crore on Friday, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 2,130.36 crore, provisional data available with BSE showed. (PTI)

Sensex trades in green

The 30-share BSE index Sensex, after a choppy trade since late morning session, is trading at 38,095.07, higher by 70.75 points or 0.19 per cent. The stocks that lent support to the index are Reliance, Axis Bank, HDFC Bank, ICICI Bank and Kotak Mahindra Bank, while the scrips of Infosys, L&T, Maruti, TCS and HDFC were trading in red.

Among the sectoral indices, the stocks of realty, FMCG and oil and gas were in the positive zone while the biggest loser were the auto stocks, trading lower by 1.36 per cent.

The broader index Nifty was trading higher by 35.35 points or 0.31 per cent at 11,462.20 points

Bullion cues

Gold ($1,302 per ounce) is stuck in between its support at $1,290 and resistance at $1,313. The yellow metal can continue to consolidate in a sideways range between $1,290 and $1,313 in the first half this week at least until the US Federal Reserve meeting on Wednesday. Read the bullion market outlook for the week here

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Top gainers and losers

BSE

NSE

Sensex marginally low

The 30-share BSE index Sensex was trading marginally lower at 38,019.39, down by 0.01 per cent. The stocks of Infosys, HDFC, Maruti, TCS and L&T were trading in the red, while the scrips of Reliance, Axis Bank, ITC, Kotak Mahindra Bank and HDFC Bank were in the positive zone.

Sectorally, the stocks of realty, energy and oil & gas were leading the positive pack. The major losers were I-T, telecom, auto and TeCk stocks, losing over one per cent.

The 50-share NSE index Nifty was marginally higher by 7.15 points or 0.06 per cent at 11,434 points. Top gainers were IOC, HP, BPCL, Axis Bank and Tata Motors while the major losers were Wipro, Maruti, Hero MotoCorp, Bharti Airtel and Grasim.

Broker's call

Motilal Oswal

LIC Housing Finance (Buy)

CMP: ₹510.15

Target: ₹600

In our view, after a span of two years, the business environment is turning favourable for LICHF. With liquidity tightening, we expect players with stronger parentage to disproportionately benefit. The company has hiked its PLR five times in the past nine months, cumulating to 70 bps.

At CMP, the stock trades at 1.4x FY20 BVPS — this is close to its decadal low of 1.1x.

Read the Broker's call on LIC Housing Finance here

Commodities market

Oil prices dipped amid concerns that an economic downturn may dent fuel consumption, but crude markets remain broadly supported by supply cuts led by producer group OPEC and US sanctions against Iran and Venezuela. Brent crude oil futures were at $67.03 per barrel, down 13 cents, or 0.2 per cent, from their last close, but not far off the $68.14 per barrel 2019-high reached last week. More on commodities market here

IDBI Bank’s ‘private lender’ tag a bolt out of the blue for staff

The RBI, on March 14, categorised IDBI Bank as a private sector bank for regulatory purposes, with effect from January 21. “It’s like throwing the baby out with the bath water.’’ That’s how an officer of IDBI Bank, the first public sector bank to have been privatised in the country, sums up the mood among its employees. Read more on the IDBI Bank's private lender tag and the reactions

The stock of IDBI Bank were trading at Rs 42.95, higher by 0.30 per cent

Top gainers and losers

BSE

NSE

Bullion market

Spot gold was down 0.2 per cent at $1,299.13 per ounce. File Photo

Gold prices slipped, as gains in the equity markets dented the appeal of the precious metal ahead of a US Federal Reserve policy meeting this week. Spot gold was down 0.2 per cent at $1,299.13 per ounce by 0443 GMT. US gold futures fell 0.3 per cent to $1,299 an ounce. Gold, which offers no yield of its own, tends to fall out of favour among investors when interest rates rise. Read the complete bullion market report here

Markets update

The 30-share BSE index Sensex was trading marginally lower by 4.20 points or 0.01 per cent at 38,020.12. The stocks of Maruti Suzuki, HDFC, TCS, L&T and SBI were trading in red. The gainers were Reliance, HDFC Bank, Kotak Mahindra Bank, Axis Bank and ITC.

Among the sectoral indices, the scrips of FMCG companies, oil & gas and realty were trading in the positive zone. The auto shares were the major loser, trading lower by 1.67 per cent.

The NSE index Nifty was trading at 11,433.60, higher by 6.75 points or 0.06 per cent. The major gainers were IOC, BPCL, HP, Tata Motors and Infratel, while the top losers were Maruti, Hero MotoCorp, Grasim, Vedanta and Eicher Motors

Jet Airways grounds four more planes

Cash-strapped Jet Airways on Monday said it has grounded four more planes, taking the number of aircraft that are non-operational due to non-payment of lease rentals to 41. Grappling with financial woes, the carrier has been looking at ways to raise fresh funds.

The stocks of Jet Airways was trading  marginally higher by 0.02 per cent at Rs 235.20

Nifty Call

The Nifty 50 futures contract opened with a 35-point gap-up at 11,505 and surged to an intra-day high of 11,554. Traders can wait for dips and go long at 11,435 and 11,415. Stop-loss can be placed at 11,395 for the target of 11,520. Read our Nifty Call for March Futures here

Forex market

The dollar licked its wounds after soft US data increased bets the Federal Reserve will cut rates later this year while the pound hovered near nine-months high on hopes for a delay in Britain's exit from the European Union. The dollar's index against a basket of six major currencies stood at 96.564, having shed 0.81 per cent last week, the biggest loss since late August. More on the forex market report here

Shares inch higher

The shares rose for a sixth straight session, as strong foreign fund inflows and expectation of the current coalition government returning to power after the general election starting next month boosted investor confidence.

The broader NSE index was up 0.10 per cent at 11,438.65, while the benchmark BSE index was 0.05 per cent higher at 38,044.12.

Financials drove gains on the NSE index, with the Nifty Bank index rising 0.24 per cent. Axis Bank was among the top percentage gainers with a rise of 1.67 per cent.

Energy stocks gained, with the Nifty Energy index rising 1.25 per cent. Indian Oil Corp and Hindustan Petroleum were the top gainers, climbing 3.9 per cent and 2.1 per cent respectively.

Dewan Housing Finance Corp Ltd rose over 3 per cent after Chief Financial officer Santosh Sharma was redesignated to another role.

Maruti Suzuki India Ltd was the biggest percentage loser, shedding 3.8 percent after a report that the company was estimated to have cut production by 26.8 pct to about 126,000 units.

Also, helping investor sentiment were a stronger rupee, which rose to a more than seven-month high, and the strength in broader Asian markets on mounting speculation the US Federal Reserve will sound decidedly dovish at its policy meeting this week.

Net foreign portfolio inflows into Indian shares hit a 15-month high of $2.42 billion in February, a big swing from 2018's net outflows of $4.4 billion. “Strong FII inflows, a stronger rupee and positive global cues are driving the market higher,” said Siddhartha Khemka, head of retail research at Motilal Oswal Securities. “Markets prefers political stability. Opinion polls suggest the return of the existing government -- this expectation and change in sentiment towards election have helped.”

(Reuters)

Maruti Suzuki India stocks slip

Maruti is estimated to have cut production by 26.8 per cent, according to media reports. File Photo

Shares of India's top-selling car maker Maruti Suzuki India Ltd fall as much as 4.3 per cent; mark their biggest daily percentage loss since January 25. More than 415,000 shares traded, as of 1003 GMT, 0.6 times their 30-day moving average of 714,618 shares. More on Maruti Suzuki stock price and production cut

Broker's call

Anand Rathi

Bajaj Finance (Buy)

CMP: ₹2,859.7

Target: ₹3,370

Bajaj Finance Ltd logo

In its latest quarterly results, Bajaj Finance has reported 54 per cent growth in PAT to ₹1,059 crore led by 41 per cent loan growth and NIM expansion (about 50bps to ~12.1 per cent y-o-y). We initiate our coverage on Bajaj Finance with a ‘buy’ rating and target price of ₹3,370 a share. Read the Broker's call on Bajaj Finance here

Markets update

The 30-share BSE index Sensex was trading higher by 74.93 points or 0.20 per cent at 38,099.25. The stocks of Reliance, HDFC Bank, Kotak Mahindra Bank, Axis Bank and ITC were lending support to the index.

The scrips of Maruti, HDFC, Mahindra & Mahindra, HeroMoto Corp and SBI were dragging the index down.

Sectorally, the energy stocks, oil and gas, and realty indices were trading higher by over 1.10 per cent. The scrips of Auto index was the top loser.

The broader index Nifty was trading higher by 21.10 points or 0.18 per cent at 11,447.95 points. The top gainers were IOC, Hindustan Petroleum, BPCL, Tata Motors and Axis Bank while the stocks of Maruti, Grasim, Hero MotoCorp, Eicher Motors and Vedanta were trading in red.

There are unmistakable signs of economy slowing down: Kaushik Basu

BL05_BNK_KAUSHIK_BASU

Noted economist and Carl Marks Professor of International Studies at Cornell University, US, Prof Kaushik Basu, expressed disappointment over unemployment data being held back and underlined indications of an economic slowdown in the country. "The latest data on industrial growth, pertaining to January, shows that India’s industry is barely growing, with the growth rate down to 1.7 per cent... What is happening to overall growth?" Read more on Kaushik Basu's view on Indian economy and growth

DHFL stocks rise

Shares of  Dewan Housing Finance Corp Ltd (DHFL) rose as much as 4.4 per cent, after Chief Financial officer Santosh Sharma was redesignated to another role. Sharma will stay on as head-corporate strategy, the home loan provider said on Saturday, as part of a corporate reorganisation. More on the DHFL stock price and management rejig

Stock Analysis - Axis Bank

Axis Bank had a relatively higher exposure to stressed sectors compared to peers. While the steep rally can limit the upside in the near term, Axis Bank’s large network, thrust on digitalisation, diversified loan book, and strong retail franchise are long-term drivers for earnings. More on the stock activity and performance of Axis Bank

Currency market

Extending its gains for the sixth session, the rupee opened higher at 68.92. File Photo

The rupee appreciated 17 paise to 68.93 against the US dollar in opening trade driven by weakening greenback in overseas markets and sustained foreign inflows. Besides, narrowing country’s trade deficit and selling of the American currency by exporters supported the domestic currency, dealers said. Read the currency market report here

Nifty touches 11,500 mark

Domestic equities continued their bull run with the BSE Sensex rising over 300 points and the Nifty reclaiming the 11,500 mark amid unabated foreign fund inflows and narrowing country’s trade deficit. Besides, positive cues from other Asian markets too bolstered trading sentiment here, traders said.

The 30-share BSE index Sensex surged 312.84 points or 0.82 per cent and trading at 38.337.16 points. The stocks of HDFC Bank, Reliance, Kotak Mahindra Bank, Axis Bank and HDFC were lending support to the index.

The 50-share NSE index Nifty was trading higher by 93.90 points or 0.82 per cent at 11,520.75. The top gainers were GAIL, Sun Pharma, Asian Paints, ITC and Maruti while the major losers were ONGC, IOC, NTPC, Hindustan Petroleum and Adani Ports.

Major gainers that supported the rally were PowerGrid, Kotak Bank, HDFC Bank, Reliance Industries, Axis bank, Bharti Airtel, Asian Paint, M&M, IndusInd Bank, Bajaj Finance, Asian Paint, Yes Bank, ICICI Bank, HDFC, ITC, Tata Steel, SBI, ONGC and Bajaj Auto, rising up to 2.57 per cent.

Shares of Maruti, on the other hand were the biggest losers, cracking up to 3.42 per cent.

Barring auto and healthcare, all the sectoral indices on BSE, led by oil and gas, PSU, realty, power, bankex, IT and FMCG, were trading in the green.

According to experts, narrowing trade deficit and sustained foreign fund inflows buoyed investor sentiment. The marginal 2.44 per cent increase in exports as well as lower imports of gold and petroleum products in February significantly narrowed the country’s trade deficit to USD 9.6 billion, data released by the commerce ministry Friday showed.

India’s merchandise exports rose to USD 26.67 billion in February from USD 26.03 per cent in the year-ago month mainly on account of higher shipments in sectors such as pharmaceutical, engineering and electronics.

On a net basis, foreign institutional investors (FIIs) bought shares worth a net of Rs 4,323.49 crore on Thursday, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 2,130.36 crore, provisional data available with BSE showed.

(With inputs from PTI)

Asian markets

People pass stock index tickers at the Singapore Exchange (SGX) premises (file photo)

Asian shares pulled ahead while bonds were in demand globally on mounting speculation the US Federal Reserve will sound decidedly dovish at its policy meeting this week. Japan's Nikkei led the way with a rise of 0.56 per cent, and MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.35 per cent. Click here to read the complete Asian markets report

Stocks in focus

Real estate stocks such as DLF, Oberoi Realty, Godrej Properties and Sobha may remain in focus, as the Bengaluru-based Embassy Property Developments Pvt Ltd, plans to raise ₹4,750 crore from an initial public offering that opens on March 18. The price band for the Embassy Office Parks REIT IPO is ₹299-300 apiece. If the IPO turns successful, market participants expect other realty companies facing huge debt to also raise funds through the REIT route.

The board of Orbit Exports will meet to consider a buyback proposal of equity shares of the company. Investors would be keen to know the buyback size and the offer price. Shareholders would also like to know the mode of buyback — whether through open market purchase or via tender offer route. If the latter is preferred, then the record date would be a crucial factor. Besides, the management’s intention on whether to participate or not will also be eyed.

Shares of NTPC will remain in focus, as they turn ex-bonus on Tuesday. The PSU major is rewarding its shareholders with one bonus share for every five held in the company. Investors wishing to receive the bonus shares need to own NTPC by Monday, as it has set March 20 as the record date to identity eligible shareholders for the bonus shares. About 5.25 lakh small investors currently hold 1.33 per cent or 10.98 crore shares in the company.

Opening bell

The 30-share BSE index Sensex opened at 38,132.96, higher by 108.64 points against the previous close of 38,024.32.

The broader 50-share NSE index Nifty opened higher by 77.55 points at 11,426.85 against the previous close of 11,504.40

Weekly Trading Guide

Upmove gains momentum in SBI (297.7)

The upmove in SBI seems to be gaining momentum. The stock surged 5.8 per cent to close higher for the fourth consecutive week. But series of resistances ahead can restrict the pace of the upmove in the near term. Immediate resistance is at ₹300. A break above it can take SBI higher to ₹305. A strong break above ₹305 can then target ₹310-₹315 or even ₹320 over the medium term. The region between ₹315 and ₹320 is a crucial medium-term resistance. Whether SBI breaks above ₹320 or not will decide the direction of the next move. On the other hand, if SBI reverses lower from ₹305 a near-term dip to ₹300 or ₹297 is possible. Significant support is between ₹297 and ₹295. The stock will come under pressure only if it declines decisively below ₹295. The next targets are ₹285 and ₹280. But such a sharp fall looks unlikely. Investors can hold the long positions at ₹283 with a revised stop-loss at ₹286. Move the stop-loss higher to ₹297 as soon as the stock moves up to ₹301. Book profits at ₹305.

Bullish outlook is intact for ITC (₹290.9)

ITC closed on a mixed note last week. The stock was volatile between ₹289 and ₹297. A key support is at ₹288. As long as the stock sustains above this support, the overall bullish outlook will remain intact. The indicators on the charts are also positive. The 21-day moving average has crossed over the 100-day moving average. It is now on the verge of crossing over the 200-day moving average. This is a bullish signal, indicating that the downside could be limited. As such, ITC can move up to test the ₹300-303 resistance cluster. A pull-back from this resistance zone can trigger a corrective fall to ₹297-₹295. A further break below ₹295 will see the corrective fall extending to ₹290 and ₹288. On the other hand, if ITC manages to breach ₹303 decisively, it will gain fresh momentum. Such a break can take the stock up to ₹310. Investors can continue to hold the long positions taken at ₹282, ₹278 and ₹272. Retain the stop-loss at ₹273. Revise the stop-loss higher to ₹285 as soon as the stock moves up to ₹299. Book profits are ₹310.

Key resistance ahead for Infosys (₹718.8)

The fall in Infosys paused last week as the stock consolidated above ₹700. The region between ₹729 and ₹730 is a crucial resistance. A strong break and a decisive close above ₹730 will negate the head and shoulder pattern formed on the daily chart. In such a scenario, Infosys will gear up for a fresh rally to ₹760 and ₹770 in the coming weeks. But a failure to breach ₹730 and a pull-back thereafter can drag the stock to ₹710 and ₹700. This will confirm the head and shoulder reversal pattern. In that case, the possibility will be high of the stock breaking below ₹700 and declining to ₹690-685 or even ₹675 — the target level of the reversal pattern. Cluster of supports is poised between ₹690 and ₹675. As such, the pace of fall below ₹700 could be slow and a further fall below ₹675 looks less probable. Medium-term traders can hold the long positions taken at ₹725, ₹720 and ₹715. Retain the stop-loss at ₹680 for the target of ₹790. Revise the stop-loss higher to ₹735 as soon as the stock moves up to ₹755.

Near-term outlook is unclear for RIL (₹1,322.6)

RIL rallied as expected last week, breaking above the key resistance level of ₹1,320. The stock surged over 7 per cent intra-week and made a new record high of ₹1,361.45. But it reversed lower towards the end of the week, giving back some of the gains, and closed 4.4 per cent higher for the week. Though the broader bullish view remains intact, the near-term outlook is unclear. The price action will need a close watch as to whether RIL manages to sustain above the psychological level of ₹1,300. A decisive break below ₹1,300 can take RIL lower to ₹1,260. But such a fall will be a good buying opportunity from a long-term perspective. If RIL manages to sustain above ₹1,300 and reverses higher, it can revisit ₹1,350-1,360. It will also keep the possibility high of the stock targeting ₹1,400 or even higher levels. Investors can hold the long positions taken at ₹1,260, ₹1,245 and ₹1,225. Retain the stop-loss at ₹1,180 for the target of ₹1,420. Revise the stop-loss higher to ₹1,320 as soon as RIL moves up to ₹1,360.

Tata Steel shows positive bias (₹515.5)

Tata Steel has been stuck in a narrow ₹505-530 range over the last couple of weeks. A breakout on either side of ₹505 or ₹530 will decide the direction of the next move. If Tata Steel breaks below ₹505, a fall to ₹495-490 is possible. The region between ₹495 and ₹490 is a strong support, which can limit the downside. A further fall below ₹490 looks less likely at the moment. On the other hand, if Tata Steel breaks the current sideways range and goes above ₹530, it can move up initially to ₹540. It will also keep the uptrend that has been in place since late January intact. An eventual break above ₹540 will then increase the likelihood of the stock targeting ₹560 levels over the medium term. The bias is positive on the charts. So, the possibility is high of the stock breaking above ₹530. As such, medium-term traders can go long on dips at ₹510 and ₹505. Stop-loss can be placed at ₹485 for the target of ₹555. Revise the stop-loss higher to ₹515 as soon as the stock moves up to the level of ₹525.

Index Outlook

Mumbai 26/07/2018: An employee of a stock trading firm looking at a share price on his computer on Thursday. The benchmark senses touched a all time high during the intra-day trades. Photo: Vivek Bendre

In the coming truncated week, the focus will remain on the gaining rupee and the mid- and small-cap segment. There could, however, be some profit-taking at higher levels in thelarge-cap segment and banking space. Hence, investors should stay alert in the coming week. On the global front, FOMC meeting, BoE meeting and crude oil price will keep the markets volatile. Read the market outlook for the week here

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