Wednesday, 20 March 2019

Axis Bank stock hits 52-week high

Shares of Axis Bank hit a 52-week high in the morning trade on Wednesday. The stock gained after the management said it is focusing on delivering 18% return-on-equity (RoE) over 3 years. The brokerages have revised their price targets on the bank post the management announcement, as per media reports.

However, the stock has pared its initial gain and trading slightly lower on both the indices.

The global brokerage firm, CLSA has maintained a ‘buy’ call at a price target of Rs840 per share, the media report added. Further, the brokerage has predicted a recovery on the bank's earnings FY20 onwards. 

Also, brokerage firm Nomura has maintained a ‘buy’ call with target raised to Rs900/share from Rs850/share earlier. The firm believes that the corporate bank is transforming into a true compounder. Axis Bank will enter predictable earnings compounding cycle with visibility of high RoEs, the media report stated. This will enable the bank to add more legs to the re-rating story over the next 2 years.

Tuesday, 19 March 2019

Nifty PSU Bank gains 2% led by Bank of India, Union Bank, PNB

The Nifty PSU Bank index gained 2% on Tuesday amid heavy buying in Bank of India, Union BankPunjab National Bank (PNB)Central Bank, and Oriental Bank of Commerce.

Shares of Bank of India and Union Bank, which gained 5% each, were leading the index’s gain. Shares of PNB gained 4%, while those of Central Bank of India and Oriental Bank of Commerce rose 3% each. Shares of Canara BankIndian Bank, and SBI also contributed to the index’s rally, rising 2% each.

Shares of Central Bank gained after the board of the company approved proposal to raise up to Rs270cr by issuing shares to its staff under the employee share purchase scheme (ESPS). The approval was granted to raise equity capital by issuance and allotment of up to 10cr shares at the issue price of Rs27/share, the bank said in a regulatory filing.

Further, shares of Canara Bank gained on plans to raise long term foreign currency funds by issuing Senior Unsecured Bonds (Medium Term Notes) in the international markets to the extent of $500mn under its Medium Term Notes (MTN) Programme, depending on the market conditions.

Monday, 18 March 2019

Lupin slips 4% as USFDA warns of regulatory action on New Jersey unit

Lupin’s subsidiary Novel Laboratories Inc. has received a letter from the USFDA classifying the inspection conducted at its Somerset (New Jersey) facility in December 2018 as Official Action Indicated (OAI).

The USFDA has stated that this facility may be subject to regulatory or administrative action and that it may withhold approval of any pending applications or supplements in which this facility is listed.

The company does not believe that this classification will have an impact on the disruption of supplies or the existing revenues from operations of this facility.

The company is in the process of sending further updates of its corrective actions to the USFDA and is hopeful of a positive outcome.

Saturday, 16 March 2019

Bank Nifty zooms, extends rally to 4th consecutive week

It was a fantastic week of trades as markets extended winning streak to the fourth consecutive week. ahead of the general elections.  The Nifty Bank index spearheaded the rally followed by the realty sector. The broader indices i.e midcap and smallcap index also was seen participating in the rally during the week.

However, the IT index was under pressure after the Indian rupee strengthened against the US Dollar. The rupee hit seven-month high to close at 60.09/$, extending gains for the fifth session in a row.

Sentiment got a fillip after retail inflation rose for the first time in four months. CPI inflation stood at 2.57% in February compared to a revised 1.97% in January 2019. Meanwhile, the Index of Industrial Production saw growth slip below 2% for the second time in three months in January.

Friday, 15 March 2019

Sensex rallies over 200 points; Kotak Mahindra, ICICI Bank stocks gain

Equity benchmark indices opened higher on positive cues from global markets. The stock market is set for their longest stretch of weekly gains in over six months.

On the sectoral front, banking, realty, IT, Financial services and pharma were trading higher by 1%, while FMCG, media, and metal were under pressure.

The Sensex rose 234 points to 37,990 levels, while the Nifty was up 66 points to 11,409. The market breadth was positive with 1,060 shares advancing, 464 shares declining, and 531 remaining unchanged on the NSE.

Shares of Coal India dropped 2% in the morning trade after the company’s board has approved the second interim dividend of Rs5.85/equity share for FY19.

Volatility index India VIX was down 0.04% at 15.14.

Thursday, 14 March 2019

Gold prices dip on dollar recovery, Brexit relief

Gold fell on Thursday as the dollar regained some ground and uncertainty over Brexit eased, but the metal held close to a two-week high hit in the previous session as tepid U.S. inflation data cemented expectations that the Federal Reserve would hold rates.
Spot gold was down 0.4 percent at $1,303.87 per ounce as of 0555 GMT, after touching its highest since March 1 at $1,311.07 on Wednesday.
U.S. gold futures also dipped 0.4 percent, to $1,304.20 an ounce.
"The dollar is playing a main role in driving gold prices down during Asia trading hours. The dollar has been falling for the last four sessions and we are seeing a small rebound today," said Margaret Yang, a market analyst with CMC Markets, Singapore.
Yang said the safe-haven demand for the metal, as a hedge against Brexit uncertainty, declined after British lawmakers rejected leaving the European Union without a deal.
The lawmakers are now widely expected to vote, later in the day, to delay Britain's departure from the EU, currently scheduled for March 29.
"The markets are assessing the landscape in Europe and UK after the vote. If we do see the deadline pushed out, there wouldn't be a huge impact (in gold prices), but the reaction will be great if we see some sort of deal agreed to in the UK parliament," ANZ analyst Daniel Hynes said.

Wednesday, 13 March 2019

Nifty above 11,300 mark; Jet Airways, SpiceJet stocks drop

Equity benchmark indices opened on a flat note on Wednesday amid weak global cues. On the sectoral front, Nifty media and metal indices are under selling pressure, while realty, banking, FMCG, and IT indices were trading up.

The Sensex rose 89 points to 37,624 levels, while the Nifty was up 19 points to 11,320 levels. The market breadth was neutral with 830 shares advancing, 733 shares declining, and 499 remaining unchanged on the BSE.


On the broader market front, the BSE MidCap index was trading at 26 points lower at 15,662, while the BSE SmallCap index was ruling at 14,927, up 6.62 points.


Shares of Jet Airways and SpiceJet dropped over 3% after Directorate General of Civil Aviation grounded the Boeing 737 Max aircraft with immediate effect, after the deadly Ethiopian Airlines plane crash.


Shares of Kotak Mahindra Bank slipped 1% after the Bombay HC refused the lender's plea to provide interim relief.


Volatility index India VIX was up 3.07% at 15.56.


HCL Tech, IndusInd Bank, Dr.Reddy’s, and Eicher are trading higher, while IOC, ONGC, Coal India, and Zee are trading lower on the NSE.


The most active stocks on NSE are Reliance Industries, HDFC Life, HDFC Bank, IndusInd Bank, and Bajaj Consumer.


Meanwhile, the Indian rupee extended its gains for the third consecutive session on Wednesday. The domestic unit gained by 6 paise to 69.65/$ in the early trade, led by sustained buying by overseas investors.




Monday, 11 March 2019

Birla Corporation falls 6% on an order to stop mining in Rajasthan City

Shares of Birla Corporation fell 6% on the BSE after the company said National Green Tribunal (NGT) has ordered to stop all mining activities which are being carried on within the municipal limits of Chittorgarh City in Rajasthan.

“The Principal Bench of National Green Tribunal on March 08, 2019 has ordered to stop all mining activities which are being carried on within the municipal limits of Chittorgarh City and within 10 km of Bassi Wildlife Sanctuary or within Eco-Sensitive Zone of Bassi Wildlife Sanctuary, if finally notified,” the company said in a regulatory filing.

We are studying the implications of the above order on our mining operations at Chanderia and material impact, if any, will be intimated to the Stock Exchanges,” the company added.

Birla Corporation Ltd is currently trading at Rs532.20 down by Rs32.6 or 5.77% from its previous closing of Rs564.80 on the BSE. The scrip opened at Rs540 and has touched a high and low of Rs540 and Rs485.10 respectively.

Saturday, 9 March 2019

Bank Nifty breaks out from Cup & handle pattern

Nifty formed a solid bullish candle stick on the weekly chart as Nifty shut above the psychological 11,000 levels. However, our daily chart analysis indicates the index formed a hanging man candle stick on Thursday followed by another small Doji pattern on Friday.

These are early indications that consolidation may set in near term. Only a break above the hanging man patterns high of 11,090 and February 2019 swing high at 11,118 level could lead to a decent rally in the coming week. 

On the other hand, the Bank Nifty is on a clear upswing and has shown immense strength compared to the Nifty.

The index has already broken out from a Cup and Handle pattern on the weekly chart. In addition, the index has also broken past the 27,785 January 9 swing highs and also closed above the same.

Friday, 8 March 2019

Granules India stock climbs 8% after promoters sell shares worth Rs50cr

Granules India shares climbed 8% on the BSE. The company said that the promoters of the company have sold 50 lakh shares to a group of reputed investors in a block deal on the stock exchanges, to mobilize about Rs50cr. 

In addition to it, the promoters are also monetizing personal assets worth up to another Rs50cr., which is expected to complete shortly.

The funds raised through these transactions will be used to reduce promoter leverage by up to Rs100cr and which will subsequently bring down the Promoters pledged position to around 30% from current level of 54%. 

This is in line with their commitment given during Q3FY19 earnings call to reduce the pledge continuously and make it pledge free within two years. The promoters also reduced some amount of their personal loan in the month of December 2018, which enabled the reduction from their highest point of the pledge of 60% to the current level of 54%.

Stock Market Tips

Thursday, 7 March 2019

Sensex, Nifty trade flat; Vedanta, Coal India stocks slip

Equity benchmark indices opened higher for the fourth consecutive session. The stocks market opened on a flat note amid mixed global cues.

On the sectoral front, FMCG, IT, pharma, and realty indices were trading in the green, while auto, media, metal, and banking were in the negative zone.

The Sensex was up 30 points to 36,666, while the Nifty was marginally up 3 points to 11,056. The market breadth was neutral with 750 shares advancing, 804 shares declining, and 503 remaining unchanged.

The BSE MidCap index was trading 23 points lower at 14,843, while BSE SmallCap index was ruling at 14,562, up 5 points.

The rupee strengthened to 69.98 a dollar as compared to its Wednesday's close of 70.27. This is the first time in two months that the rupee has gained past the 70 mark against the US dollar.

Shares of Biocon slipped 1% on the BSE in the morning trade. The pharma company said that the USFDA has issued six observations in Form 483 after pre-approval inspection of its insulin drug substance manufacturing facility in Bengaluru.

Suzlon Energy stock slipped 2% after 0.26cr shares changing hands on NSE on Thursday.

Wednesday, 6 March 2019

Nifty PSU Bank gains 1% led by J&K Bank, Indian Bank, SBI

The Nifty PSU Bank Index gained 1% on Wednesday amid heavy buying in Jammu & Kashmir (J&K) BankIndian Bank, SBI, and Canara Bank.

Shares of J&K Bank, which gained 16%, were leading the index’s gain. Shares of Indian Bank, SBI, and Canara Bank, which climbed 4%, 2%, and 1%, respectively. Shares of Bank of IndiaBank of Baroda, and IDBI also gained 1%, each.

Meanwhile, equity benchmark indices were trading in the green on Thursday with the Sensex gaining 158 points at 36,600 levels. Nifty also climbed 52 points to trade at 11,039 levels.

On the currency front, Indian rupee depreciated 18 paise at 70.67 against the dollar against the previous close of 70.49/$. The currency opened at 70.60 against the dollar. 

Tuesday, 5 March 2019

Gold hovers near five-week lows as firm dollar, trade optimism dent appeal

Gold prices were steady on Tuesday, trading near five-week lows touched in the previous session, as a firmer dollar and optimism over a likely U.S.-China trade deal dented safe-haven appeal of the precious metal.
Spot gold was up 0.2 percent to $1,288.46 per ounce as of 0552 GMT, after slipping to $1,282.50 in the previous session, its lowest since Jan. 25.
U.S. gold futures also advanced 0.2 percent to $1,289.80 per ounce.
The dollar, against a group of six major currencies, was trading close to its two-week high of 96.816 posted in the previous session.
"People are more comfortable in moving out of safe-haven assets and gold is coming under pressure from that," said Jeffrey Halley, Senior Market Analyst at OANDA.

"A lot of money was parked in gold at the start of the year, waiting for clarity on tariffs. Now that we are seeing little bit of optimism on the tariffs that is sort of undermining pillars for buying gold," Halley said, adding that if yields continued to rise, that would further pressure gold.
U.S. Secretary of State Mike Pompeo said on Monday he thought the United States and China were "on the cusp" of a deal to end their trade war.
However, a slight slip in the Asian equity market triggered by a cut in China's economic growth target supported gold prices on Tuesday.