Closing Bell: Sensex ends 192 pts lower, Nifty below 11,600 even as RBI cuts rate

Market at close: Benchmark indices ended lower but off day's low after Reserve Bank of India (RBI) slashed repo rate by 25 bps to 6 percent on April 4 as expected and kept the stance unchanged to Neutral.

At the close, the Sensex was down 192.40 points at 38,684.72, while Nifty was down 46 points at 11,598. About 1073 shares have advanced, 1426 shares declined, and 164 shares are unchanged. 

Top losers include TCS, HCL Tech, Hindalco Industries, BPCL and Yes Bank, while gainers were Indiabulls Housing, Zee Entertainment, Tata Motors, UltraTech Cement and Britannia Industries.

On the sectoral front, except auto, FMCG and pharma, all other indices ended in red led by IT, bank and energy.

Source:https://www.moneycontrol.com/news/business/markets/closing-bell-sensex-ends-192-pts-lower-nifty-below-11600-even-as-rbi-cuts-rate-3759791.html

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Gold gains as dollar eases; focus on US-China talks

Gold gained on Thursday, supported by an easing dollar as investors awaited progress on the ongoing Sino-U.S. trade negotiations after reports showed that both sides were nearing a deal.

Spot gold rose 0.2 percent to $1,291.89 per ounce as of 0332 GMT. U.S. gold futures firmed 0.1 percent at $1,296.90 an ounce.

"One of the key issues would be the China-U.S. trade negotiations. There is a lot of optimism around the idea that we will see a peaceful resolution and some agreement really soon," said Michael McCarthy, chief market strategist, CMC Markets.

"However, if the trade talks drag out we could see further support for gold because of its implications for growth."

Gold is often seen as a safe investment during times of financial and political uncertainties.

A pause in the equities rally also helped the bullion. Asian shares held near an eight-month peak as investors awaited developments on trade talks.

Negotiations between the United States and China made "good headway" last week in Beijing and the two sides aim to bridge differences during talks this week, White House economic adviser Larry Kudlow said.

The dollar was trading near one-week low posted in the previous session after data showed U.S. services sector activity hit a more than 19-month low in March and private payrolls grew less than expected.

Market participants are now awaiting the U.S. nonfarm payrolls data, due on Friday, as it would offer insights on the strength of the U.S. economy.

A weak payrolls data could further weigh on the U.S. unit, making dollar denominated metals cheaper for investors holding other currencies.

Holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, also fell for a third consecutive session on Wednesday. Holdings were at their lowest level since Dec. 17 at 24.57 million ounces.

Among other precious metals, spot platinum rose the most in more-than-two-years in the previous session to touch its highest level since end-June 2018 at $879.03 an ounce.

The auto-catalyst metal was down 0.2 percent at $872.93 an ounce on Thursday, while its sister metal palladium was up 0.3 percent at $1,409.15.

Silver dipped 0.3 percent to $15.09 per ounce.

Source:https://www.moneycontrol.com/news/business/markets/gold-gains-as-dollar-eases-focus-on-us-china-talks-3760881.html

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Sensex, Nifty open flat ahead of RBI meet; bank in focus

Market Opens: It is flat start for the Indian indices ahead of RBI policy meeting.

At 09:19 hrs IST, the Sensex is up 45.55 points at 38922.67, while Nifty is up 5 points at 11649. About 523 shares have advanced, 307 shares declined, and 52 shares are unchanged. 

Indiabullls Housing, Hero Motocorp, Titan, UltraTech Cement, L&T, Vedanta, Bharti Airtel, SRF, Godrej Agrovet are among major gainer, while losers are Wipro, HCL Tech, Zee Entertainment, UPL, BPCL, JSW Steel and Tata Steel.

On the sectoral front, except IT and metal, all other sectoral indices are trading in green.

Rupee Opens: The Indian rupee opened lower by 11 paise at 68.53 per dollar on Thursday versus 68.42 yesterday.

Source:https://www.moneycontrol.com/news/business/markets/market-live-sensex-nifty-open-flat-ahead-of-rbi-meet-bank-in-focus-3759791.html

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Metals with good amount of long positions built up to see strong upmove in April series

The April series seems to have opened with a huge bout of positivity. With Nifty closer to its previous highs and Bank Nifty venturing out into an unchartered territory, the bulls have all the reasons to be optimistic about the current market scenario.

One sector that is poised to take full advantage of this positivity is metals. The sector which has long been preparing itself for this move seems to be fully prepared to go full-out and perform itself in the April series. The fact that it closed with a big white candle pattern on the first day of April series, with a good amount of long positions built up, is indicative of a strong move to be anticipated in this sector.

In the monthly chart of Nifty Metals shown below, notice the hammer candle pattern marked in the blue arrow which falls at 50 percent Fibonacci retracement level.

Source:https://www.moneycontrol.com/news/business/markets/metals-with-good-amount-of-long-positions-built-up-to-see-strong-upmove-in-april-series-3731271.html

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What makes this smallcap a good value buy?

Himatsingka Seide (HSL), one of India’s largest home textile majors and exporters, draws our attention on account of improving business fundamentals. Conclusion of capex cycle by H1 FY20, higher contribution from branded products, an uptick in utilisation rates and undemanding valuations make us bullish on the stock.

Q3 review

Positives

- Sales grew on the back of higher contribution from branded products (84 percent of Q3 sales)

- Gross and operating margins expanded noticeably because of a good product mix and full benefits of captive consumption (ie. yarn being utilised to manufacture bed sheets)

Negatives

- Forex losses resulted in other income declining sharply year-on-year (YoY)

- Depreciation and interest costs rose significantly YoY due to investments in the terry towel plant

- Tax rate increased marginally YoY

- The above factors led to a marginal reduction in PAT (profit after tax) margins

Why consider investing?

Capex intensity is waning

By September 2019, HSL’s terry towel facility is likely to be set up. Post this, barring regular maintenance capital expenditure, there is no big expansion plan.

Depreciation and financing charges, that rose noticeably in the past 4 quarters due to investments in the terry towel project, are likely to reduce from H2 FY20 onwards. This is because impetus will be laid on debt repayment. Consequently, bottom-line margins, working capital cycle and cash flows should improve.

Utilisation rates are likely to go up

In Q3 FY17, HSL expanded its bed sheet manufacturing capacity from 23 mmpa (million metres per annum) to 46 mmpa. Utilisation levels in respect of both (ie. original and new capacity) are stable at the moment. As the company’s order book (particularly for branded products) grows, there will be a corresponding uptick in manufacturing activities. This, in turn, should help achieve operating leverage.

Debottlenecking of bed sheet manufacturing capacity has been concluded in Q3 FY19, thereby resulting in an increase in capacity to the tune of 15 mmpa. This new capacity will be utilised for manufacturing products that yield lower realisations, implying that sales growth, to this extent, will be volume-driven.

Once the terry towel facility becomes operational, utilisation levels should start moving up too.

Sale of branded products on an uptrend

In 9M FY19, brands constituted about 85.6 percent of the top-line as against 71 percent in FY18. HSL’s own brands are making their presence felt in the financials.

HSL will complete integration of manufacturing processes of the Tommy Hilfiger brand by Q4 FY19-end.

Rights to sell ‘Calvin Klein Home’ products globally have been acquired. Previously, HSL could sell products only in North America.

Since branded products, especially own brands and fashion bedding variants, command better realisations vis-a-vis their unbranded counterparts, HSL’s margins should start moving up gradually.

Risks

To mitigate risks associated with regional concentration, HSL is exploring markets in Europe and Asia. Nevertheless, at the moment, the US market alone comprises nearly 85-90 percent of HSL’s annual top-line. Therefore, Trump’s actions of withdrawing the preferential trade treatment granted to Indian exporters may affect the company’s future revenue visibility.

Indian Rupee’s appreciation vis-à-vis the US dollar would impact product realisations to the extent of unhedged cash flows. Raw material (cotton) costs are not showing any signs of moderation as of now.

Competitive pressure from nations such as Pakistan, Vietnam and Bangladesh continues to persist.

Signs of consumption slowdown in international markets can hit the order book.

Outlook

HSL’s stock price has been on a downward spiral during the course of the last 12 months. This is primarily on account of market volatility and YoY dip in PAT (profit after tax) margins since the last 3 quarters.

After a sharp 47 percent correction from its 52-week high, the stock trades at an undemanding 6.7 times its FY21 projected earnings. This makes it a good value buy.

However, it is pertinent to note that any meaningful re-rating in HSL’s valuation multiples may be seen only from H2 FY20.

Source:https://www.moneycontrol.com/news/business/moneycontrol-research/ideas-for-profit-what-makes-this-smallcap-a-good-value-buy-3724171.html

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Indices begin April series firm, Nifty above 11,600; Vodafone Idea gains 14%

Market Opens: It is a strong start for the April F&O series on Friday with Nifty above 11,600 level.

At 09:18 hrs IST, the Sensex is up 171.30 points or 0.44% at 38717.02, and the Nifty up 49.60 points or 0.43% at 11619.60.  About 592 shares have advanced, 203 shares declined, and 50 shares are unchanged. 

The gainers are IOC, Indiabulls Housing, Hindalco, Wipro, Tech Mahindra, RIL, BPCL, Can Fin Homes, Vodafone Idea, Jet Airways, PFC, REC while losers include Axis Bank, IndusInd Bank, Eicher Motors, SBI life and Motherson Sumi.

All the sectoral indices are trading in green led by metal, energy, infra, IT, pharma and auto.

Rupee Opens: The Indian rupee gained in the early trade on Friday. It opened higher by 10 paise at 69.24 per dollar versus previous close 69.34.

Source:https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-bse-nse-indices-begin-april-series-firm-nifty-above-11600-vodafone-idea-gains-14-3722631.html

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Nifty Bank at record high; HDFC Bank, RBL Bank hit 52-week highs

The Bank Nifty hit an all-time high on March 27 as the rally in banking stocks continued for the second consecutive day.  The index surpassed its previous record high of 30,008 registered on March 22 and hit a fresh intraday high of 30,129.25 in the morning trade.

The rally was led by IndusInd Bank (up 3.8 percent), followed by RBL Bank (up 1.86 percent), Yes Bank (up 1.5 percent), PNB (up 1.3 percent), and Bank of Baroda (up 1 percent).

As many as two stocks in the Nifty Bank hit a fresh 52-week high. HDFC Bank surged to Rs 2,328.05, and RBL Bank rose to Rs 667.80 intraday on March 27.

Most experts feel that the rally is here to stay and investors can remain net long in the index with an initial target of 30,250. The support is seen at 29,500.

Source:

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United Breweries jumps 6% on report of Heineken raising stake in co

United Breweries shares rallied 6 percent in the morning trade on March 27 after a media report indicated that Heineken raised its stake in the company.

The stock was quoting at Rs 1,409.80, up Rs 61.90, or 4.59 percent on the BSE, at 0936 hours IST.

According to the report by CNBC-TV18 quoting unnamed sources, Heineken purchased an additional 75 lakh shares (representing 2.8 percent of total paid-up equity of company) of United Breweries through block deal at Rs 1,395 apiece.

Out of total promoter holding, Heineken held 43.7 percent equity stake in United Breweries and Vijay Mallya has 8.08 percent holding in the company as of December 2018.

Source:https://www.moneycontrol.com/news/business/markets/united-breweries-jumps-6-on-report-of-heineken-raising-stake-in-co-3707811.html

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Closing Bell: Sensex ends higher, Nifty holds 11,500; PNB gains 3%

Market Close: Benchmark indices ended mixed after they remained range bound throughout Wednesday. 

The Sensex was up 23.28 points at 38386.75, while Nifty was down 11.40 points at 11521. About 1104 shares have advanced, 1532 shares declined, and 173 shares are unchanged. 

Indiabulls Housing, Hindalco Industries, Infosys, Dr Reddy’s Labs and Wipro were among major gainers, while losers include HPCL, Zee Entertainment, BPCL, NTPC and ONGC on the Nifty.

Except bank, pharma and IT all other sectoral indices are ended in red led by auto, metal, energy, FMCG and infra.

Source:https://www.moneycontrol.com/news/business/markets/closing-bell-sensex-ends-higher-nifty-holds-11500-pnb-gains-3-3669791.html

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Closing Bell: Sensex ends 269 points higher, Nifty above 11,400; IT stocks outshine

Market at close: Benchmark indices ended higher but off day's high on the back of last hour selling pressure.

The Sensex was up 269.43 points at 38024.32, while Nifty was up 83.60 points at 11,426.90. About 1172 shares have advanced, 1452 shares declined, and 162 shares are unchanged. 

Among the gainers, Kotak Mahindra Bank rose 4%, followed by Power Grid Corp, TCS, ICICI Bank and SBI, while on the other hand HUL shed 2 percent, followed by Yes Bank, RIL, Bharti Airtel and ITC on the Sensex.

On the sectoral front, IT index has outperformed the other indices with nearly 2 percent gain followed by auto, infra, metal and pharma, while selling was seen in the FMCG space.

Nifty Bank continued its upward momentum as it ended 1.6 percent higher at 29381.50.

Source:https://www.moneycontrol.com/news/business/markets/closing-bell-sensex-ends-269-points-higher-nifty-above-11400-it-stocks-outshine-3649211.html

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Nifty ends above 11,150, Sensex gains 382 pts; metal stocks outperform

Market at close: Indices ended on strong note on Monday as bulls took charge of the Dalal Street with Sensex closed above 37,000, while Nifty finished above 11,150 mark.

The Sensex was up 382.67 points at 37054.10, while Nifty was up 132.60 points at 11168. About 1735 shares have advanced, 911 shares declined, and 163 shares are unchanged. 

Bharti Airtel, HPCL, BPCL, Eicher Motors and Bharti Infratel were the top gainers on the Nifty, while losers include NTPC, Zee Entertainment, TCS, Tech Mahindra and HCL Tech.

Except IT index, all other sectoral indices ended in green led by auto, energy, infra, metal, PSU bank, pharma and FMCG.

Source:https://www.moneycontrol.com/news/business/markets/closing-bell-nifty-ends-above-11150-sensex-gains-382-pts-metal-stocks-outperform-3629741.html

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Closing Bell: Nifty ends 124 pts higher, Sensex up 378 pts; auto stocks biggest gainers

Market at close: It is a strong close for benchmark indices on first day of the week as market was shut on Monday on account of Mahashivratri. 

The Sensex was up 378.73 points at 36442.54, while Nifty was up 124.00 points at 10987.50. About 2118 shares have advanced, 568 shares declined, and 152 shares are unchanged. 

Indiabulls Housing, Eicher Motors, Tata Motors, HPCL and BPCL were the top gainers on the Nifty, while losers were Wipro, Tech Mahindra, Infosys, HUL and Cipla.

Midcap and smallcap gained 2-3 percent, respectively. Among the sectors, auto, metal and PSU bank indices led with 2-3 percent gain followed by energy, infra and pharma, while IT index lost over 1 percent.

Rupee gains further: The Indian rupee is trading higher by 43 paise at 70.48 per dollar versus Friday's close 70.91.

Source:https://www.moneycontrol.com/news/business/markets/closing-bell-nifty-ends-124-pts-higher-sensex-up-378-pts-auto-stocks-biggest-gainers-3607341.html

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International Market Update (1 March 2019)

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International Market Update (27 Feb)

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