RBI cuts repo rate: 12 rate-sensitive stocks that will benefit the most

The 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’. This is the second rate cut in 2019.

“These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 percent within a band of +/- 2 percent while supporting growth,” the central bank said in a statement.

The MPC notes that the output gap remains negative and the domestic economy is facing headwinds, especially on the global front. The need is to strengthen domestic growth impulses by spurring private investment which has remained sluggish.

Rate cut usually acts as a sentiment booster and aid companies that have to service large debts. A cut by RBI injects liquidity in the economy. Loans with a low rate lead to an increase in buying interest in the consumer-driven economy which will help India Inc. to deliver strong earnings growth.

Top sectors which are likely to benefit the most from a rate cut are banking, NBFC, infrastructure and real estate. This rate cut will help in boosting demand and ease interest rate pressure on debt-heavy companies, suggest experts.

“If we look from the perspective of real estate sector the RBI rate cut will impact the home loan interest rate, this will allow the reduction in EMIs which will bring a positive impact on the sector's growth. IndiaBulls real estate and DLF are the two stocks which have some debt burden and seems to get the benefit of this rate cut,” Ritesh Ashar, CSO at KIFS Trade Capital told Moneycontrol.

“NBFC sector along with banks are also likely to get the benefit of this rate cut as the cost of funding will become low and there would be an improvement in the margin and in this space stocks like DHFL and Indiabulls Housing Finance looks quite promising,” he said.

Source:https://www.moneycontrol.com/news/business/stocks/rbi-cuts-repo-rate-12-rate-sensitive-stocks-that-will-benefit-the-most-3753751.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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International Market Update

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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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Nifty around 11,500, Sensex up over 100 points; IT stocks lead

Market Opens: It is good start for the Indian indices on Thursday with Nifty above 11,450 level.

At 09:17 hrs IST, the Sensex is up 36.12 points or 0.09% at 38169, and the Nifty up 10.50 points or 0.09% at 11455.50. About 510 shares have advanced, 281 shares declined, and 31 shares are unchanged. 

Zee Ent, HCL Tech, Tech Mahindra, Infosys, Indiabulls Housing, Yes Bank, HPCL, BPCL, IOC, GAIL, Eicher Motors are among major gainers, while losers are Tata Motors, ONGC, JSW Steel, IndusInd Bank, Power Grid, Cipla, HDFC Bank and Tata Steel.

Except metal, auto and pharma, all other sectoral indices are trading with marginal gain.

Rupee Opens: The Indian rupee opened lower by  24 paise at 69.11 per dollar on Thursday versus previous close 68.87.

Source: https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-bse-nse-nifty-around-11500-sensex-up-over-100-points-it-stocks-lead-3714661.html

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Opening Bell

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Closing bell: Sensex jumps 424 pts, Nifty ends tad below 11,500; RIL, banks lead

Market Closing

Benchmark indices rebounded sharply after falling in previous two straight sessions, driven by banking & financials, and index heavyweight Reliance Industries.

The BSE Sensex rallied 424.50 points or 1.12 percent to 38,233.41 and the Nifty50 climbed 129 points or 1.14 percent to 11,483.30.

The Nifty Midcap index also gained over a percent but the market breadth was not so great.

About 1,377 shares advanced against 1,286 declining shares on the BSE.

NTPC, Reliance Industries, SBI, Vedanta and Bajaj Finance were leading gainers among Nifty50 stocks, rising 3-4 percent while Tech Mahindra, IOC, UPL, Infosys and Wipro lost 0.6-2.4 percent.

Source:https://www.moneycontrol.com/news/business/markets/closing-bell-sensex-jumps-424-pts-nifty-ends-tad-below-11500-ril-banks-lead-3700331.html

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Sensex marginally higher, Nifty inches towards 11,400; Jet Airways rallies 7%

Market Opening:

Benchmark indices opened marginally higher after a selling pressure seen in previous two consecutive sessions.

The BSE Sensex rose 51.28 points to 37,860.19 and the Nifty50 gained 31.90 points at 11,386.20.

Indiabulls Housing, Zee Entertainment, Eicher Motors, GAIL, Adani Ports, Bharti Infratel and Reliance Industries were early gainers.

Infosys, TCS, Tech Mahindra, HCL Technologies, JSW Steel and Power Grid were under pressure.

Nifty Midcap index was up 0.5 percent.

Jet Airways rallied 7 percent after Naresh Goyal and his wife stepped down from board.

Kalpataru Power Transmission gained 4 percent.

ICICI Prudential Life lost 2.5 percent.

Rupee Opening

The Indian rupee opened higher at 68.88 against the US dollar on March 26, 2019.

It appreciated by 5 paise compared to Monday's close of 68.93 to the dollar.

"The rupee ended mildly higher, on March 25, recovering from its intraday lows of 69.17. RBI three-year dollar-rupee swap auction will be held today. The move in the rupee will be keenly watched ahead of RBI’s monetary policy meeting next week," ICICI Securities said.

The brokerage further said the slump in US yields could cap the dollar's ability to appreciate sharply.

Investors continue to await the US-China trade talks outcome while ongoing Brexit uncertainty is also weighing on risk sentiments, it added.

Source:https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-bse-nse-sensex-marginally-higher-nifty-inches-towards-11400-jet-airways-rallies-7-3700331.html

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These 30 stocks made most of the bull run, rallied 30-99% in a month

With D-Street riding a crest, stocks across sectors posted handsome gains.In the BSE 500 index, which gained 9 percent in 1 month, 30 stocks rallied in the range of 30 percent to 99 percent, which also include stocks that singed in September and October due to factors such as corporate governance issues, liquidity crisis and mixed earnings.

Suzlon Energy, Manpasand Beverages, Dilip Buildcon, Edelweiss Financial, CG Power, Bombay Dyeing, Adani Power, Allahabad Bank, Mahindra Holidays, NBCC, IRB Infrastructure, Just Dial, ICICI Securities, Kalpataru Power Transmission and Can Fin Homes were among the top 30 stocks.

On hopes of Modi government returning to power, FIIs are also in a bullish mood.

"After the clarity on the election results and earnings pickup, we feel, FIIs will do historic investments this year," Foram Parekh, Fundamental Analyst – Equity, Indiabulls Ventures, told Moneycontrol.

The most favoured stocks in this run were among midcaps and smallcaps.

In Nifty50, top four stocks were from PSU segment. They were HPCL (up 35 percent), IOC (up 29 percent), BPCL (21 percent) and NTPC (21 percent) while the rest five among top 10 stocks were from banking and financial segment. Yes Bank, Bajaj Finserv, IndusInd Bank, ICICI Bank and SBI gained 15-17 percent.

Source:https://www.moneycontrol.com/news/business/markets/these-30-stocks-made-most-of-the-bull-run-rallied-30-99-in-a-month-3683761.html

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Closing Bell: Nifty ends above 11,450, Sensex gains 70 points; OMCs gain

Market close: The last hour buying helped the market to end higher on Monday with Nifty finished above 11,450 level.

At the close, the Sensex was up 70.75 points at 38095.07, while Nifty was up 35.30 points at 11462.20. About 1132 shares have advanced, 1545 shares declined, and 173 shares are unchanged. 

HPCL, IOC, Bajaj Finance, BPCL and JSW Steel were the top gainers on the Nifty, while losers include Maruti Suzuki, Hero Motocorp, Wipro, Bharti Airtel and HCL Tech.

Among the sectors, IT and auto index remained under pressure throughout the day as they slipped 1 percent each, while some buying was seen in the metal, energy, FMCG and bank names.

Source:https://www.moneycontrol.com/news/business/markets/closing-bell-nifty-ends-above-11450-sensex-gains-70-points-omcs-gain-3656321.html

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Opening Bell

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US oil retreats from 2019 high on soaring production

US crude futures eased slightly on March 15 after hitting a 2019 high, as worries about the global economy and robust US production put a brake on prices.

West Texas Intermediate (WTI) crude oil futures settled down 9 cents at $58.52 a barrel, having hit their highest so far this year at $58.95.

Brent crude futures settled down 7 cents at $67.16 a barrel, below their 2019 peak of $68.14 reached on March 14.

US crude ended the week 4.1 percent higher, and Brent was up 1.9 percent.

"The market is taking a pause as it tries to digest mixed reports that give us different ideas of future supply and demand," said Phil Flynn, an analyst at Price Futures group in Chicago. "The OPEC-plus meeting could give us a little direction," he said.

The Organization of the Petroleum Exporting Countries and its allies including Russia, an alliance known as OPEC+, agreed last year to cut production, partly in response to increased U.S. shale output.

OPEC+ ministers will meet on April 17-18 to decide production policy.

"If OPEC+ decide to extend (cuts) ... we expect that inventories will continue to draw through at least Q3," US investment bank Jefferies said.

The International Energy Agency said on March 15 that the market could show a modest surplus in the first quarter of 2019 before flipping into a deficit in the second quarter by about 0.5 million barrels per day (bpd).

It said a comfortable supply cushion by OPEC could prevent any price rally in case of possible disruptions and that non-OPEC oil output growth led by the United States should ensure demand is met.

US energy firms this week reduced the number of oil rigs operating for a fourth week in a row, with drilling slowing to its lowest in nearly a year, prompting the government to cut crude output growth forecasts.

Drillers cut one oil rig in the week to March 15, bringing the total count down to 833, the lowest since April 2018, General Electric Co's Baker Hughes energy services firm said in its closely-followed report on Friday.

Oil price gains have been limited by concerns that an economic slowdown that has gripped large parts of Asia and Europe will dent growth in fuel demand.

But oil consumption has held up so far.

Crude oil use in China, the world's biggest importer, in the first two months of 2019 rose 6.1 percent from a year earlier to a record 12.68 million bpd, official data showed this week.

Goldman Sachs said growth in global demand for crude in January was "nearly 2.0 million barrels per day, with strength visible in both emerging markets and developed economies."

Source:https://www.moneycontrol.com/news/business/commodities/us-oil-retreats-from-2019-high-on-soaring-production-3653221.html

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Bank Nifty gains 10% in March: Here's what is driving the rally in banking stocks

Banking and financial services stocks have been key drivers of the current rally that has led benchmark indices to fresh six-month highs. The up move has been fuelled by hopes of Modi's return at the Centre and renewed FII inflow.

Bank Nifty has rallied 10 percent in March so far and financial services index has climbed around 8 percent in comparison to Nifty's over 5 percent gain.

Index constituents Punjab National Bank, Bank Of Baroda, IndusInd Bank, IDFC First Bank, ICICI Bank, RBL Bank and SBI have rallied 10-20 percent during the current month.

Meanwhile, Kotak Mahindra Bank, Federal Bank, HDFC Bank, Yes Bank and Axis Bank have gained 5-9 percent.

Source:https://www.moneycontrol.com/news/business/markets/bank-nifty-gains-10-in-march-heres-what-is-driving-the-rally-in-banking-stocks-3649921.html

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Sensex opens more than 100 pts higher, Nifty around 11,400; Coal India falls

Market Opens: It is a strong start for the Indian indices on the last day of the week with Nifty around 11,400 level.

The Sensex is up 165.79 points at 37920.68, while Nifty is up 51.10 points at 11394.40. About 528 shares have advanced, 171 shares declined, and 33 shares are unchanged. 

Tech Mahindra, Indiabulls Housing, Gail, Eicher Motors, Dr Reddy's Lab, Kotak Mahindra, JSW Steel are the gainers on the indices, while losers led by Coal India, Bajaj Auro and UltraTEch Cement.

Rupee Opens: The Indian rupee opened flat at 69.33 per dollar on Friday versus 69.35 yesterday.

Source:https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-bse-nse-sensex-opens-more-than-100-pts-higher-nifty-crosses-11400-coal-india-falls-3649211.html

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Opening Bell

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MCX SUpport and Resistance Level

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Maruti Suzuki dips 1% after Kotak downgrades, cuts price target

Maruti Suzuki India shares fell a percent intraday on Friday after Kotak Institutional Equities downgraded its rating on the stock to add from buy earlier.

The research house also slashed price target to Rs 7,500 from Rs 7,600 apiece after cut in earnings per share estimates.

The stock was quoting at Rs 6,978.50, down Rs 52.15, or 0.74 percent on the BSE, at 15:10 hours IST.

The brokerage house said the domestic passenger vehicle (PV) industry is likely to grow in low single digit (6 percent CAGR over the next two years) due to increase in costs related to stricter safety and emission regulations.

"While Maruti is better-placed and will gain market share, we cut EPS estimates by 4-9 percent for FY2019-21 mainly driven by cut in volume estimates (lower industry growth assumptions) and EBITDA margin forecasts (factoring in lower operating leverage and higher costs related to safety regulations in entry-level models), it added.

The brokerage expects Maruti Suzuki to increase its market share in the passenger vehicle industry in India by 290 bps over FY2019-23 led by a shift in consumer preference towards petrol vehicles against diesel, especially in compact SUV and compact car segments.

Source:https://www.moneycontrol.com/news/business/markets/maruti-suzuki-dips-1-after-kotak-downgrades-cuts-price-target-3624881.html

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