MARKETS ON MONDAY: Sensex ends 286 pts higher, Nifty reclaims 10,200

All that happened in the markets today

10:58 AM

Policy rates likely to be kept on hold; tone to remain cautious: UBS

 

In its policy review scheduled for 5 April, we expect the Monetary Policy Committee (MPC) to maintain the repo rate at 6%. We expect the tone of the policy statement to remain cautious while maintaining a neutral policy stance. With growth trends improving and inflation surprising on the downside, we believe the balance of risks doesn’t require the MPC to change its stance

10:45 AM

From UPL to PI Industries, favourable weather for agrochem companies

Multiple boosts, on the back of an improving global agrochemicals cycle and favourable triggers at home, should benefit agricultural input companies. These events should enhance demand for their products, leading to higher volumes. READ MORE

10:36 AM

Cadila Healthcare stock: Analysts see 20% compounded growth in US sales

 

The Cadila Healthcare stock price has corrected by a fourth since its high touched in November and by almost a third from its peak level reached in June last year. Concerns over rising competitive intensity in the US and pricing pressure in the pharma sector are weighing on the company’s stock prices.

 

While analysts have cut their forward net profit estimates to factor in the challenges, the correction in stock prices, according to them, is exaggerated. Analysts at Nomura, are maintaining their positive stance on Cadila. READ MORE

10:22 AM

Number of delisted companies on the rise; bourses may see more exits

 

Despite a record line-up of debuts on the bourses this year, India’s listed universe is shrinking, and shrinking fast.

 

Around 1,000 companies were compulsorily delisted in the past two years on the BSE and the National Stock Exchange (NSE). And, by some estimates, another 1,000-2,000 may be shown the door, effectively contracting the universe of listed shares by 30-50 per cent.

 

Around 5,900 companies were listed on the BSE on March 31, 2016. The number has now reduced to 5,035. A majority on the list have been compulsorily delisted, sources said. READ MORE

10:09 AM

ICICI Bank falls 5% as ED initiates enquiry in ICICI-Videocon loan

 

ICICI Bank hit five-month low, down nearly 5% on the BSE after the media reports suggested that the Enforcement Directorate (ED) has started an enquiry into the Rs 32.50-billion loan sanctioned to the Videocon group and others by ICICI Bank, which was part of a consortium of lenders.

 

The stock of private sector lender was down 4.6% to Rs 265.40 on the BSE in early morning trade, its lowest level since October 24, 2017. On comparison, the S&P BSE Sensex was trading 0.13% higher at 33,011 points. READ MORE

10:08 AM

MARKET COMMENT Chris Wood of CLSA

There is a possibility that the top in the S&P500 on 26 January marked a major top rather than just another short and sharp correction. True, it conflicts potentially with GREED & fear’s continuing view that Asian and emerging market equities will go up in absolute terms as well as in relative terms. It also conflicts with the continuing assumption that the US dollar will remain weak.
 

GREED & fear would still advise investors to keep an open mind on the issue that a major top is in in the sense that this is a distinct possibility. This is because the January top came amidst extreme valuations and amidst overwhelming bullish sentiment.

The other reason a top could be in in the American stock market is the twin negatives of ongoing US monetary tightening, as well as the trade issue which has dominated headlines over the past week and more. Of the two, GREED & fear considers ongoing monetary tightening as by far the biggest negative for US equities.

While the trade issue is perhaps more of a threat for Asian equities, GREED & fear’s base case remains that the Trump administration is looking for a better deal rather than an outright trade war.

The problem with GST in India is its multiple rates, which will create problems. The bottom line is that if the Indian markets correct, foreigners will buy now: Christopher Wood

9:55 AM

Companies raise Rs 843 bn via IPOs in FY18, a three-fold jump: Report

 

Indian companies garnered Rs 843.57 billion through initial share sales in 2017-18, registering a nearly three-fold jump compared to the preceding fiscal, says a report.

 

According to the study by PRIME Database, the amount raised by firms through the initial public offer (IPO) route stood at Rs 290.50 million  during 2016-17.

 

"2017-18 was the best year ever for the IPO market by far, the previous high being in 2007-08 when Rs 413.23 billion was raised, less than half of the amount raised in 2017-18," said Pranav Haldea, Managing Director, PRIME Database. READ MORE

9:42 AM

Volume Toppers

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
KWALITY	55.30	-5.05	-8.37	2455251
JP ASSOCIATES	19.45	0.50	2.64	607740
SUZLON ENERGY	10.89	0.15	1.40	419221
KPIT TECH.	218.85	2.10	0.97	413723
IDBI BANK	71.15	-1.10	-1.52	400468

9:30 AM

Nifty Auto up over 1%, Tata Motors, Bosch gains

COMPANY	LATEST	PREV CLOSE	GAIN()	GAIN(%)	VOLUME
TATA MOTORS	335.00	326.85	8.15	2.49	46910
BOSCH	18300.00	18017.55	282.45	1.57	76
MOTHERSON SUMI	315.80	310.95	4.85	1.56	2714
TATA MOTORS-DVR	186.00	183.30	2.70	1.47	4616
MARUTI SUZUKI	8990.00	8861.10	128.90	1.45	2734
M & M	748.90	738.90	10.00	1.35	5931

9:19 AM

Sectoral Trend

9:17 AM

Sensex gainers and losers

9:16 AM

Markets at Open

At 9:16 am, the S&P BSE Sensex was trading at 33,096, up 127 points while the broader Nifty50 index was ruing at 10,166, up 52 points

9:12 AM

INTERVIEW OF THE DAY Our Sensex target for December 2018 is 36,900: Citi India's Abhinav Khanna

As markets enter the new financial year and the long-term capital gains tax on the sale of stock investments kicks in, ABHINAV KHANNA, head of equities, Citi India, tells Puneet Wadhwa that he remains optimistic on the medium-to-long term growth of India, led by consumption recovery and the green shoots visible in the capex cycle. READ MORE

Abhinav Khanna, Head of equities, Citi India

9:10 AM

Equinomics View of the Economy and Markets

 

In stock markets, we are entering new fiscal year today. Unfortunately, this new fiscal year FY2019 is likely to experience a lot of volatility due to political events, steep rally in oil prices, global trade wars, etc. Fund managers may face some stress due to unfavorable macro market conditions this year. However, it is very important for the investors to keep in mind the historically proven fact that those who utilize the bear market to accumulate good quality value stocks at every major fall are the ones who make sizeable equity wealth in the markets.

Year 2013 was the latest example – due to wrong perceptions, MRF crashed to around Rs.6000 level and JB Chemicals to as low as Rs.68. Many retail investors lost faith in the fund managers and pulled out money at those levels also. Certainly it is most unlikely that we will make that kind of multiple returns from the current levels in 2019.

But the point is that a simple theory of “Law of Demand” has solid relevance in the stock markets. Lower the price, higher should be the demand for stocks – only stipulation is that the quality (in terms of valuation, management and balance sheet) of the stocks should be unquestionable. We at Equinomics, will try our best to minimize the errors in stock selection in this new fiscal year.

9:09 AM

Major Economic Events This Week

(Source: Nirmal Bang)