Vinod Nair, Head of Research, Geojit Financial Services
Market recovered from the initial disruption after a clear victory for government in Gujarat and Himachal Pradesh state election. Increased investors sentiment will attract liquidity in the market while participants focused on the fulcrum of improvement in fundamentals to strengthen the valuation. Triggers like earnings season and global market movement will be closely watched for any earnings upgrade and US tax reform for the direction.
4:02 PM
Market breadth
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,437 shares rose and 1,209 shares declined. A total of 178 shares were unchanged.
3:58 PM
Broader markets
The S&P BSE Midcap index ended at record high level, up 0.7% to 17104, while the S&P BSE Smallcap index settled at 18252.68, up 0.4%.
It was an eventful day as Nifty witnessed a swing of nearly 400-odd points in early trade and finally settled with gains of over half a percent. Initially, markets reacted sharply on negative side, citing unexpected lead by the Congress in Gujarat election, but not for long. The situation completely reversed in next few minutes as BJP took over Congress in both the states and progressed towards comfortable win. However, volatility remained high on stock-specific front, keeping the uneasiness intact.
Nifty has again reached closer to its record high, clearly indicates that bulls are in control. Participants will now be at ease as there's no major event ahead and global cues will take over. We suggest keeping stock-specific trading approach with bias on the positive side.
Shares of Eros International rose as much as 4% to Rs 204.50 after the Mumbai-based film distributor signed four film production deals with Drishyam Films, the company said in a filing to BSE.
3:10 PM
Sectoral trend in last leg of trade
Source: NSE
3:03 PM
Markets check
At 3:00 pm, the S&P BSE Sensex was trading at 33,604, up 141 points, while the broader Nifty50 was ruling at 10,397, up 64 points.
5 stocks contribute over half of Sensex's market-cap gain in 2017
Reliance Industries, HDFC Bank, Maruti Suzuki India, Hindustan Unilever and Bharti Airtel are the top 5 companies that have contributed more than half of the gain in market capitalisation (market-cap) recorded by S&P BSE Sensex companies thus far in the calendar year 2017 (CY17). READ MORE
2:32 PM
Ajay Bodke, CEO & Chief Portfolio Manager, PMS, Prabhudas Lilladher on Gujarat election verdict
BJP's convincing victory in Gujarat after overcoming 22 long years of so called 'anti-incumbancy' is particularly significant as it was achieved despite a virulently castiest campaign unleashed by the Opposition. The demonizing of major structural reforms like the GST and demonetization was squarely rejected by the electorate. This would reinforce government's resolve to roll-on reforms jaggarnaut benefiting the economy & markets. This would lead to an acceleration in foreign and domestic direct and portfolio investments.
2:15 PM
Oil edges up on pipeline outage
Oil edged up on Monday, lifted by an ongoing North Sea pipeline outage and over signs that booming US crude output growth may be slowing, although the outlook for oil markets cites ample supplies despite ongoing production cuts led by OPEC.
US West Texas Intermediate (WTI) crude futures were at $57.39 a barrel, up 9 cents or 0.2% from their last settlement.
Brent crude futures, the international benchmark for oil prices, were at $63.37 a barrel, up 14 cents or 0.2% from their last close. READ MORE
2:01 PM
JM Financial on Havells India
Havells, in its recent investor meet, showcased the senior/middle management team and elaborated various initiatives taken to remain at top of its game and continue to be ahead of industry. The company has hired over 43 senior professionals across business verticals in past 18 months to strengthen various aspect of the company (product innovation, technology, distribution and so on) and continues to offer innovative products across categories. It talked about various strategic initiatives to grow market share (aims to be among top 3-5 players across product categories) and remains confident about the medium-long term business prospects. While we like the company’s holistic approach towards business segments and execution track record, we maintain our HOLD rating on account of fair valuation.
1:45 PM
Reliance Securities on JSW Steel
JSW Steel closed ~4% higher in trading beating the NSE Metal Index by over 1% and supported by ~1.4x its 2-week average traded volume.
Domestic HRC prices continue to remain firm in-line with International steel prices and is currently trading at Rs39,500/tonne up 6% since 1st April 2017.
JSTL’s sales volume in 2QFY18 recorded at the highest level in any July-September quarter, partially aided by higher exports. We expect the momentum to continue as we envisage imports to contract due to continued anti-import measures by the government.
JSTL continues to be the best bet on domestic steel sector due to efficient operations, lean cost structure and huge potential for volume.
We are positive on the stock with a Target Price of Rs 282.
1:32 PM
Elections over, markets to now focus on earnings, budget, macros
With the Narendra Modi-led Bharatiya Janata Party (BJP) likely to be back in driver's seat in Gujarat and a possible win in Himachal Pradesh (HP) in the recent assembly elections, analysts expect markets' focus in the short-to-medium term to shift back to macro-economic data, corporate earnings growth, pace of reforms and the upcoming budget in February. CLICK HERE FOR MORE
The benchmark indices recovered all its initial losses on Monday as Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) appeared to win Gujarat for a sixth term, but Nifty50 failed to end above its crucial 10,400 mark
Earlier in the session, the indices had dropped as much as 2.5% each, posting their biggest intraday loss in more than a year as initial counting showed a close fight between the ruling Bharatiya Janata Party and the main opposition Congress party.
The Election Commission of India will announce the Assembly election results on eci.nic.in.
Exit poll findings had also given the BJP an upper hand in both Gujarat and Himachal Pradesh.
Overseas, Asian shares edged up with sentiment boosted by expectations US lawmakers will pass a long-awaited tax bill this week, while Chinese stocks were soggy on concerns about liquidity and tighter regulations in the world’s second largest economy.
 "Nifty fails to settle above 10,400 as BJP's tally in Gujarat narrows")
