MARKETS ON MONDAY: Sensex ends 162 pts up, Nifty at 10,379 on Asian cues
All that happened in the markets today.
 "Markets, Stocks, BSE, NSE, Trade")
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9:01 AM
Markets at pre-open
(Source: BSE)
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 33,742.32 | +115.35 | +0.34 |
| S&P BSE SENSEX 50 | 10,844.57 | +40.57 | +0.38 |
| S&P BSE SENSEX Next 50 | 34,375.07 | +79.69 | +0.23 |
| S&P BSE 100 | 10,792.18 | +37.00 | +0.34 |
| S&P BSE Bharat 22 Index | 3,551.15 | +42.90 | +1.22 |
(Source: BSE)
8:55 AM
Inflows into Indian equity funds slowest in March as shares tumble globally
Inflows into Indian equity funds in March were the smallest in 13 months as some investors sold before a tax on stock holdings took effect from April 1 and volatility returned to markets worldwide. Equity funds took in a net Rs 66.57 billion ($1 billion), the least since last February, data from the Association of Mutual Funds in India show. READ MORE
8:51 AM
Technology: Earnings preview from Motilal Oswal Research
Guidance for FY19 will understandably supersede the performance of 4Q, and all eyes will be on INFO come 13th April. We expect Infosys to start the year by guiding for 6-8% growth in constant currency (which will be higher in reported dollar), and are currently pegging our estimate at the higher end of that band.
Traditional pain points of 1Q seasonality no longer hold for Wipro, and with weaker areas such as Healthcare and Communications having seen their bottom, there is a good reason to expect better 1Q guidance than earlier years. However, there is a risk of offset from client-specific factors like the Energy account in 3Q. We expect 1QFY19 guidance of 1-3% QoQ CC.
Apart from quantitative guidance, TCS’ commentary on BFSI and margins will be crucial, as softness in both is a downside risk to current valuations.
8:49 AM
Global trade war fears battering all equity markets
Global equity markets are seeing heightened volatility due to the risk of a global trade war. Benchmark indices of almost all the countries have come off since February-end when US President Donald Trump first threatened to impose sanctions on imports of steel and aluminium.
Even markets such as India, despite low exposure to the US economy and their stock markets, has seen high turbulence due to the risk-off sentiment among overseas investors created by the trade war fears. READ MORE HERE
8:48 AM
The mutual fund industry saw a sharp drop – 60 per cent month-on-month – in equity inflows in March. This has raised doubts on whether this is an aberration or a trend reversal. Sector executives are quick to point out that the low inflow tally is on account of churning of portfolios by investors ahead of long-term capital gains implementation. Meanwhile, some believe investor flows could be tapering amid spike in the volatility. However, high gross sales figure suggest that the drop in inflows could be just an aberration. Gross inflows stood at Rs 391 billion in March compared to Rs 323 billion in February. And large part of Rs 361-billion redemptions in March are due to technical factors, say executives. If they are to be believed, the party continues for now. READ MORE
Street signs: Fund managers bet on UPL, mutual fund industry, and more
The mutual fund industry saw a sharp drop – 60 per cent month-on-month – in equity inflows in March. This has raised doubts on whether this is an aberration or a trend reversal. Sector executives are quick to point out that the low inflow tally is on account of churning of portfolios by investors ahead of long-term capital gains implementation. Meanwhile, some believe investor flows could be tapering amid spike in the volatility. However, high gross sales figure suggest that the drop in inflows could be just an aberration. Gross inflows stood at Rs 391 billion in March compared to Rs 323 billion in February. And large part of Rs 361-billion redemptions in March are due to technical factors, say executives. If they are to be believed, the party continues for now. READ MORE
8:47 AM
TECHNICAL INSIGHTS: Focus on outperformers
With index boundaries defined for the near term (10100-10600), we expect momentum to continue in broader markets as seen in last week’s trade. Notably, NBFCs & Housing Finance companies have been the prime movers of the recent comeback. As our detailed technical study reveals, select stocks from the given space have bottomed out, and have relatively outperformed. With wild swings back to haunt global markets, corrections would be the new normal for 2018. This note throws light on those stocks (LIC Housing Finance, L&T FH, Chola Finance & Bajaj Finserve) with structural strength that, given the volatile environment, could present ample buying opportunities on every decline.
(Source: IIFL)
With index boundaries defined for the near term (10100-10600), we expect momentum to continue in broader markets as seen in last week’s trade. Notably, NBFCs & Housing Finance companies have been the prime movers of the recent comeback. As our detailed technical study reveals, select stocks from the given space have bottomed out, and have relatively outperformed. With wild swings back to haunt global markets, corrections would be the new normal for 2018. This note throws light on those stocks (LIC Housing Finance, L&T FH, Chola Finance & Bajaj Finserve) with structural strength that, given the volatile environment, could present ample buying opportunities on every decline.
(Source: IIFL)
8:47 AM
MARKET COMMENT Amar Ambani, head of Research at IIFL
Gains of around 2% last week for the main Indian indices have kept sentiment in Indian equities market positive. TCS and Reliance led the gains as eight of the Top 10 stocks added close to Rs.86,000 crore to their market mcap. The outlook is a quiet start. US indices closed lower and Asian markets are a bit jittery. Trade worries remain a concern. China has threatened a ‘fierce counter attack’ to what it describes as US ‘waywardness.’
The earnings season kicks in this week with Infosys announcing its numbers on Friday. Bond yields will be in focus after the RBI on Friday announced an increase in limits for foreign portfolio investors to buy Indian government and corporate bonds. Lemon Tree Hotels will list on the bourses today.
The earnings season kicks in this week with Infosys announcing its numbers on Friday. Bond yields will be in focus after the RBI on Friday announced an increase in limits for foreign portfolio investors to buy Indian government and corporate bonds. Lemon Tree Hotels will list on the bourses today.
8:45 AM
Earnings expectations from JM Financial
In 3QFY18, earnings surprised positively with c.14%YoY (ex-SBI, TTMT and vs. estimate of 9%) jump for companies in our coverage. For 4QFY18E, we expect 12%YoY growth in earnings for Nifty and 16% (ex-SBI, TTMT) for 160 of our wider coverage primarily led by margin expansion. Sectors leading the growth are metals, NBFC, and energy and the sectors likely to disappoint are telecom, utilities, and media.
In 3QFY18, earnings surprised positively with c.14%YoY (ex-SBI, TTMT and vs. estimate of 9%) jump for companies in our coverage. For 4QFY18E, we expect 12%YoY growth in earnings for Nifty and 16% (ex-SBI, TTMT) for 160 of our wider coverage primarily led by margin expansion. Sectors leading the growth are metals, NBFC, and energy and the sectors likely to disappoint are telecom, utilities, and media.
8:44 AM
Q4FY18 Results Preview
The positive impact of demand recovery and a favorable base effect in Q3FY18, when the profit growth of our coverage universe stood at 14.6% yoy, is seen fading in Q4FY18 despite continued strength in demand conditions. This is largely because of higher tax burden, up 33% yoy. Improved demand is seen sustaining owing to better rural demand and recovery in global trade scenario.
Further evidence of recovery is seen in the recovery of credit demand and higher government spending. Growth in non-food credit has recovered to 11% by mid-Mar’18 from 5% a year back. The Consumer space, including Staples and Discretionary (like Autos) are expected to witness a fairly healthy performance. The Agriculture side of the rural sector is still facing headwinds in the form of weak farm produce realizations and feeble net cash flows, resulting in weak demand for agri-inputs. There also appears to be a modest pick-up in the Capital Goods sector, largely propelled by government spending.
(Source: Emkay Global)
The positive impact of demand recovery and a favorable base effect in Q3FY18, when the profit growth of our coverage universe stood at 14.6% yoy, is seen fading in Q4FY18 despite continued strength in demand conditions. This is largely because of higher tax burden, up 33% yoy. Improved demand is seen sustaining owing to better rural demand and recovery in global trade scenario.
Further evidence of recovery is seen in the recovery of credit demand and higher government spending. Growth in non-food credit has recovered to 11% by mid-Mar’18 from 5% a year back. The Consumer space, including Staples and Discretionary (like Autos) are expected to witness a fairly healthy performance. The Agriculture side of the rural sector is still facing headwinds in the form of weak farm produce realizations and feeble net cash flows, resulting in weak demand for agri-inputs. There also appears to be a modest pick-up in the Capital Goods sector, largely propelled by government spending.
(Source: Emkay Global)
8:43 AM
SGX Nifty
The SGX Nifty was at 10,329.50, down 0.1% from the previous close.
The SGX Nifty was at 10,329.50, down 0.1% from the previous close.
8:43 AM
NIFTY VIEW
In spite of some hiccups midway, Nifty witnessed a good recovery on weekly basis to gain over 2% to turn up the weekly trend positive after 9 weeks. The sentiment has improved little bit and now a decisive breach above 10480 would bring about a conviction for further upward movement. However, the support for the week is seen at 10080 while the resistance would be at 10550 levels. READ MORE HERE
(Source: Prabhudas Lilladher)
(Source: Prabhudas Lilladher)
8:42 AM
Asian Markets
Asian shares edged higher on Monday as a bounce in US stock futures soothed sentiment even as US President Donald Trump kept up his twitter war with China over trade just a couple of days before Chinese President Xi Jinping gives a keynote speech.
MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1 per cent. Japan's Nikkei wavered either side of flat, and South Korea edged ahead by 0.2 per cent.
Asian shares edged higher on Monday as a bounce in US stock futures soothed sentiment even as US President Donald Trump kept up his twitter war with China over trade just a couple of days before Chinese President Xi Jinping gives a keynote speech.
MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1 per cent. Japan's Nikkei wavered either side of flat, and South Korea edged ahead by 0.2 per cent.
8:42 AM
Key events this week
The Q4 earnings result season will kick off from next week. IT major Infosys is expected to be the first bluechip firm to come out with its Q4 result on April 13. The Central Statistics Office (CSO) is slated to release the macroeconomic data points of IIP and CPI (Consumer Price Index) on April 12. On the global front, fears over the further imposition of trade protectionist measures between the US and China can unleash volatility. READ MORE HERE
The Q4 earnings result season will kick off from next week. IT major Infosys is expected to be the first bluechip firm to come out with its Q4 result on April 13. The Central Statistics Office (CSO) is slated to release the macroeconomic data points of IIP and CPI (Consumer Price Index) on April 12. On the global front, fears over the further imposition of trade protectionist measures between the US and China can unleash volatility. READ MORE HERE
8:40 AM
Stock picks from Devang Shah
DHFL BUY
CLOSE: Rs 538.20
TARGET: Rs 565/590
DHFL closed weekly in positive territory. It’s outperforming in short term. Its daily momentum indicators are in BUY. One can BUY with stop loss of 490 for the target of 565/592 levels in short term.
CLICK HERE FOR MORE
CLICK HERE FOR MORE
8:40 AM
Wall Street
US stocks dropped about 2 per cent on Friday, with the Dow falling more than 570 points, as US President Donald Trump's latest tariff threat on Chinese imports fuelled increasing concern over a US trade war with China.
The Dow Jones Industrial Average fell 572.46 points, or 2.34 per cent, to 23,932.76, the S&P 500 lost 58.37 points, or 2.19 per cent, to 2,604.47 and the Nasdaq Composite dropped 161.44 points, or 2.28 per cent, to 6,915.11.
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First Published: Apr 09 2018 | 3:30 PM IST
