MARKET WRAP: Sensex ends at new closing high of 37,337; ITC up 5% post Q1

The benchmark indices are trading at record high on Friday on strong quarterly results

8:55 AM

MARKET COMMENT Chris Wood of CLSA

The US dollar index has been trading sideways so far this month. The risk for markets, and clearly for Asian markets, is another US dollar surge. GREED & fear is hoping this will not happen. But the key word is “hoping”. Asian central banks would certainly not to want to take this for granted. Investors should build in the risk of more monetary tightening, most particularly in those markets which share the double whammy of being oil consumers and running a current account deficit.

As for India, the latest inflation data has maintained expectations of more tightening. The same applies with the “populist” decision, announced on Saturday, to lower GST rates on 88 consumer items

Christopher Wood, Managing Director & Equity Strategist, CLSA

8:53 AM

Emkay Global on PVR

Guidance on screen addition has been maintained at 90+ for FY19 while our conservative estimate of 66 addition also remains unchanged. Focus is now to drive footfalls higher and better yields in advertisement. The management stated that the focus on increasing footfalls would not impact its long-term inflation led increase in ATP.
 

PVR and Inox are likely to remain range-bound till further clarity emerges on the recent F&B issue. We believe that some changes would be recommended by the government while the form and intensity of the same lacks clarity. Till clarity emerges, we are cutting our target multiple to 10.5x EV/EBITDA and rating to HOLD with a revised target price of Rs 1,114.

8:53 AM

Nifty outlook from Prabhudas Lilladher 

 

Market continues to surge high closing at all time high now gives an upside projected target of 11400-11450 supported by Bank Nifty which too has got in new round of momentum coming out of consolidation aided by SBI, HDFC, ICICI, Axis, etc. The support for the day is seen 11100 while resistance is seen at 11230. Mid cap sector too is gradually reviving. Metal sector needs to get in momentum to show confirmation of bottoming out. 

8:52 AM

Emkay Global on Dr Reddy's

We prune our estimates by 15%/5% for FY19/20E and raise rating to ACCUMULATE, as we see the cyclical pricing pressure (PBM consolidation) drawing to a close over the next  two quarters. We risk being early in our call on pricing pressures bottoming out, but we believe the trough should come by the end of CY18.

8:52 AM

UPDATE ICICI Bank postpones annual general meeting by a month to September 12

Private lender ICICI Bank has postponed its annual general meeting (AGM) by a month to September 12, amidst allegations of wrongdoing against its managing director and chief executive Chanda Kochhar. The AGM was to be held on August 10 earlier. READ MORE HERE

8:50 AM

MARKET COMMENT Amar Ambani, head of research, IIFL

The Indian equity market achieved yet another milestone as both the frontline indices ended at record closing highs. It has taken the Sensex many months to add the last 1000 points. The rally was mostly led by PSU banks and financial stocks. There was some expected volatility in the last hour of trade due to the expiry of the July F&O contracts.

Rollovers were much higher than the three-month average. A quiet start is in store. US indices closed mixed and Asian markets are treading cautiously. The Vodafone-Idea merger has been approved by the government, making it the largest telecom provider in the country. The European Central Bank kept interest rates unchanged, and confirmed its plans to end its bond purchase program by December 2018. Bank of Baroda, ICICI Bank, Reliance Industries, Schneider and Welspun are set to declare their Q1 earnings today

8:49 AM

Top trading ideas by Anand Rathi Research

 

UJJIVAN FINANCIAL SERVICES: BUY

TARGET: Rs 410

STOP LOSS: Rs 380

 

The stock has formed a bullish reversal pattern a “Double bottom” pattern. The momentum indicator is also well in the buy mode thus confirming an uptrend. So, we recommend buying UJJIVAN for the target of 410 with a stop loss of 380. Click here for more

8:48 AM

Today's picks: From HPCL to ITC, hot stocks to watch on Friday

HPCL

Current price: Rs 277

Target price: Rs 273

 

Keep a stop at Rs 280 and go short. Add to the position between Rs 274 and Rs 275. Book profits at Rs 273.

ITC

Current price: Rs 287

Target price: Rs 292

 

Keep a stop at Rs 285 and go long. Add to the position between Rs 290 and Rs 291. Book profits at Rs 292. READ MORE

8:45 AM

US markets end mixed

The major stock indexes traded in different directions on Thursday as investors grappled with a disastrous quarterly report from Facebook. The Dow Jones Industrial Average rose 112.97 points, or 0.44 per cent, to 25,527.07, the S&P 500 lost 8.63 points, or 0.30 per cent, to 2,837.44 and the Nasdaq Composite dropped 80.05 points, or 1.01 per cent, to 7,852.19.

8:42 AM

SGX Nifty

The SGX Nifty was at 11,242.50, up 0.18 per cent from the previous close.

8:37 AM

Asian Markets

Asian stocks struggled to gain traction on Friday, following a mixed end to Wall Street trade and as the worsening Sino-US trade dispute kept investors in the region cautious, despite signs of rapprochement between the United States and Europe.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed in early trade. Japan’s Nikkei eked out a 0.3 per cent gain though it was capped by worries that the Bank of Japan could scale down its asset purchase at its upcoming policy review next week.

8:33 AM

MARKETS ON THURSDAY

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	36984.64	36858.23	126.41	0.34
	15059.90	14996.19	63.71	0.42
	15763.22	15644.91	118.31	0.76
	16306.02	16255.43	50.59	0.31
	4330.95	4314.39	16.56	0.38

8:28 AM

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