MARKETS ON TUESDAY: Sensex, Nifty gain in last leg of trade; PSU banks rise

All that happened in the markets

9:03 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,232.63	-22.73	-0.07
S&P BSE SENSEX 50	10,659.87	-24.01	-0.22
S&P BSE SENSEX Next 50	33,528.75	+84.33	+0.25
S&P BSE 100	10,595.33	-16.69	-0.16
S&P BSE Bharat 22 Index	3,470.27	-4.94	-0.14

(Source: BSE)

8:59 AM

Why is India underperforming?

There is a growing sense of disillusionment with India among international investors. They have been selling stocks for most of last year, and India continues to underperform most other emerging markets (EM) year-to-date. The only large market down more than India this year is Australia. Among the larger EM markets, India is down the most. Many of the fancied mid-cap stocks in India are down 20-25 per cent. The mid-cap indices are down more than 10 per cent in dollar terms. CLICK HERE FOR MORE

8:58 AM

COMMENT RBI to hold rates, say analysts at Edelweiss Research

In the forthcoming monetary policy on April 05, 2018, we expect RBI to leave repo rate unchanged. Indeed, the recent positive surprise on inflation front (Q4FY18 CPI to be 50bps lower than RBI’s own forecast) may reduce the urgency to guide for a rate hike soon. However, we still expect policy tone to be neutral–to-hawkish. After all, inflation is likely to be higher in FY19 owing to: a) higher MSP for agri produce during the year (assuming it to be 1.5x cost of production); and b) impact of rising crude oil prices & hike in import duties on several agri commodities (edible oils, pulses, wheat, etc).

 

In addition, the RBI would likely guide for close monitoring of the fiscal developments (given weak GST collections so far) and trend in global interest rates amid gradual withdrawal of liquidity by DM central banks. Thus, we expect a vigilant RBI maintaining a status quo on policy rates

8:57 AM

COMMENT Rising petrol & diesel prices and its impact on economy

The oil marketing companies raised prices of petrol again on April 2nd taking the prices of petrol to a 4 year high. Delhi, which enjoys the lowest petrol and diesel among metros, has not seen current high levels since September 2013.

 

Domestic oil prices are impacted by 3 factors viz global crude prices, exchange rate and domestic taxes. Brent crude has crossed $70/bbl and that is putting pressure on domestic prices. Between Nov 2014 and Jan 2016 the Finance minister had raised the excise duty on 9 occasions to slice part of the lower crude prices. However there was only 1 cut in excise duty in october 2017. Since petrol and diesel are not covered by GST, most states have also not reduced the rates of VAT. That has also put pressure on prices.

 

For India there are serious macro implications. The CAD has already touched 2% of GDP for Dec quarter and it could get worse in the March quarter. That could be negative for sovereign ratings and for the INR. But the more immediate impact could be on CPI inflation which could go back above the 5% mark. In fact markets are already worried that higher crude could compel downstream oilcos to bear part of the subsidy burden

(Source: Angel Broking)

8:56 AM

Dividend yield stocks: How to navigate if the market turns bearish?

When the markets are down and stocks are cheap, it is an opportunity to look for high dividend yield stocks. As long as you hold the stock concerned and as long as the company continues to pay dividends at the same rate, your dividend yield is fixed for life, even if the market price of the stock changes subsequently. CLICK HERE FOR MORE

8:55 AM

IPO tracker: ICICI Securities allots shares before March 31 deadline

ICICI Securities managed to close its initial public offering (IPO) on March 31, thereby saving billions in taxes for parent ICICI Bank. The broking firm and investment bankers handling the issue worked during the two public holidays last week in order to finish the allotment process before April 1, when the new tax on long-term capital gains (LTCG) came into effect. READ MORE

8:54 AM

ICICI Bank stock posts biggest single-day drop in nearly three years

The ICICI Bank stock posted its biggest single-day drop in nearly three years on Monday, amid the ongoing investigations into its lending practices. Shares of the country’s third-largest lender closed at Rs 261.9, down Rs 16.5, or 5.93 per cent on the BSE, the most since August 24, 2015. The market valuation eroded by Rs 104.52 billion to Rs 1.68 trillion on the BSE. READ MORE

8:52 AM

Derivative strategy on Tech Mahindra by Motilal Oswal Securities

TECH MAHINDRA : BULL CALL SPREAD

 

View: Positive to range bound

 

BUY 1 LOT OF 640 CALL

SELL 1 LOT OF 660 CALL

NET PREMIUM PAID: 8.20 POINTS

KEEP SPREAD SL: 4.20 POINTS (RISK OF Rs. 4800/-)

KEEP SPREAD TARGET: 15 POINTS (REWARD OF Rs. 8160/-)  READ MORE

8:50 AM

Top trading ideas for today by MOSL: Buy L&T, Bajaj Finance

L&T

Reco: BUY

Last Close: Rs 1,335

Stop Loss: Rs 1,310

Target: Rs 1,385

 

It formed a Bullish Belt hold on weekly scale and given a consolidation breakout. READ MORE

8:48 AM

Top trading ideas from Prabhudas Lilladher for today

BUY STERLITE TECH 

CMP : Rs 327 

TARGET : Rs 370 

STOP LOSS : Rs 305
 

The stock has been consolidating for some time between the range of Rs 306 and Rs 316 levels and currently the indicators are well poised to take the stock to further heights and has maintained a positive bias. The RSI has indicated a trend reversal from the oversold zone and has signaled a buy. With good volume participation, we recommend a buy in this stock for an upside target of Rs 370 keeping a stop loss of Rs 305. READ MORE

8:46 AM

Nifty outlook for the day

Market has witnessed a bounce back with daily trend continuing to be positive, with a close above 200DMA, a further up move to 10,300 cannot be ruled out. The support for the day is seen at 10,150 while resistance is seen at 10,260. Pharma has now shown signs of bottoming out along with Auto stocks showing good upside potential.

8:44 AM

Markets on Monday

 

S&P BSE Sensex	33,255.36		0.87%
Nifty 50	10,211.80		0.97%
S&P BSE 200	4,481.82		1.11%
Nifty 500	9,023.60		1.25%
S&P BSE Mid-Cap	16,186.32		1.40%
S&P BSE Small-Cap	17,394.27		2.35%

8:43 AM

SGX Nifty

The SGX Nifty was at 10,212.50, down 0.51% from the previous close.

8:42 AM

Asian Markets

Asian stocks extended a global selloff and the yen rose on Tuesday as investors fled for safety as an escalating trade spat between the United States and China and a renewed slump in tech shares such as Amazon.com sapped investor confidence.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.28 per cent pressured by the tech sector. Japan’s Nikkei slipped 1.1 per cent while South Korea’s KOSPI index skidded about 1 per cent.

8:40 AM

Wall Street

Wall Street shares plunged on Monday as investors fled technology stocks amid resurgent trade war worries, with key indexes trading below their 200-day moving averages and the S&P 500 closing below that pivotal technical level for the first time since Britain's vote to leave the European Union in June 2016.

The Dow Jones Industrial Average fell 458.92 points, or 1.9 per cent, to 23,644.19 after dipping below its 200-day moving average. The S&P 500 fell 58.99 points, or 2.23 per cent, to 2,581.88 and the Nasdaq Composite dropped 193.33 points, or 2.74 per cent, to 6,870.12.