MARKET WRAP: Cong-JD(S) alliance buzz in Karnataka keeps sentiment in check

The markets pared gains to turn flat on reports of Congress-JD(S) alliance in Karnataka

10:10 AM

MARKET COMMENT Jimeet Modi, Founder & CEO at Samco Securities

Preliminary indications suggest massive loss to Congress and corresponding gains to BJP and JDS alliance. This is a positive surprise to the market. These results can be presumed to be harbinger for 2019 elections which is why the market is rejoicing. Populist measures which were earlier expected may not actually happen which would be considered good  by all the international and local investors

10:05 AM

MARKET SNAPSHOT

10:04 AM

NEWS ALERT BJP crosses half-way mark in Karnataka polls, say TV reports

10:02 AM

MARKET COMMENT

In its semi-annual global index review, MSCI has included China ‘A’ shares in its global benchmark to be effective at the end of May. The estimated weight to be represented by Chinese ‘A” shares in the MSCI Emerging Market Index is 0.39%, with 234 stocks to be included. We expect institutional investors to increase their exposure to China with caution.

While inclusion will provide a “jump start” effect on the interests, renminbi concerns and policy uncertainties are the two major setbacks for their enthusiasm, in our view.  The ‘A’ share turmoil in 2015 when the index halved from its peak didn’t help with the assessment of the ‘A’ share market.  Meanwhile, Northbound flows through the stock connect recorded the biggest monthly inflows since the beginning of 2017, suggesting active retail participation. 

 

We believe H-shares, which trade at a valuation discount to the A-shares, and Chinese brokers are indirect beneficiaries of the inclusion. Investors can also consider selected Exchange Traded Funds for direct A-share exposure

(Source: DBS Bank note)

10:01 AM

MARKET ALERT Nifty50 index hits 10,900 mark as Karnataka poll outcome trends show BJP in lead

9:59 AM

Trends at 9:56 am

9:57 AM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,880.71	+324.00	+0.91
S&P BSE SENSEX 50	11,402.02	+92.66	+0.82
S&P BSE SENSEX Next 50	33,335.95	+261.22	+0.79
S&P BSE 100	11,207.01	+90.57	+0.81
S&P BSE Bharat 22 Index	3,648.48	+38.32	+1.06

9:54 AM

Average one-year category returns for large-cap funds stand at 10.2%

 

Passive funds that track benchmarks indices are not popular in India. Investors here prefer schemes managed by fund managers, also known as active funds, mainly because of the perceived ability of these to beat returns of the underlying benchmarks and generate the so-called alpha. READ MORE

9:40 AM

RBI may go for 3 rate hikes from Dec qtr: Morgan Stanley Report

 

The Reserve Bank is expected to begin its rate hike cycle from December quarter, and may go for three rate hikes by 2019 taking the key policy rate to 6.75 per cent, says a Morgan Stanley Report.

 

According to the global financial services major, a significant overshoot of inflation relative to RBI's target is not likely. Moreover, the economic recovery will be on a surer footing by the fourth quarter of 2018 and this might prompt the central bank to go for a rate hike. READ MORE

9:31 AM

Partywise Trends & Result at 9:30 am

9:23 AM

Sectoral Trend

9:19 AM

BSE Sensex Heatmap

9:17 AM

Market at open

 

At 9:16 AM, the S&P BSE Sensex was trading at 35,547, down 10 points while the broader Nifty50 was ruling at 10,792, down 14 points.

9:06 AM

Rupee extends weakness: At 16-month low, trades at 67.75/$

9:01 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,569.41	+12.70	+0.04
S&P BSE SENSEX 50	11,309.36	-4.83	-0.04
S&P BSE SENSEX Next 50	33,074.73	-298.71	-0.90
S&P BSE 100	11,116.44	-19.03	-0.17
S&P BSE Bharat 22 Index	3,610.16	-1.03	-0.03

(Source: BSE)