MARKET WRAP: Sensex gains 196 pts, Nifty tops 10,850; PSBs jump up to 12%

Here's a look at all that happened in Friday's session.

9:12 AM

COMMENT :: Dhananjay Sinha, head of institutional research, economist and strategist, Emkay Global

Q3FY19 real GDP growth decelerated to 6.6% vs. consensus estimate of 6.8%. Full-year FY19 growth is estimated at 7%, down from 7.2% earlier. Implied growth from Q4FY19 stands at 6.5%. Going ahead, we believe that demand conditions should look better, especially on the consumption side, even as the investment side is expected to decelerate.

Higher government spending ahead of the May 2019 general elections along with provisions made in the interim Union Budget FY20 for increased spending in the rural and agriculture sector, large-scale loan waivers along with tax sops leading to higher disposable income for households imply a strong fiscal multiplier effect in the coming quarters.Overall, we believe that India will grow at 7.2% in FY20, a little higher than 7% in FY18, but somewhat lower than 7.4% as projected by the central bank

9:11 AM

Jet Airways, Bharti Airtel and auto stocks may hog the limelight today

According to news reports, Jet Airways’ founder Naresh Goyal has agreed to step down as chairman of the airline’s board. READ MORE

9:04 AM

MARKET COMMENT :: Chris Wood of CLSA

The seeming victory of the Fed doves has come as “risk-on” confidence has built in Wall Street-correlated world stock markets that a US-China trade deal is coming. The two signals this past week were the decision to extend the 1 March deadline for the further threatened rise in tariffs and talk of a meeting between The Donald and President Xi Jinping at Trump’s estate in Florida in late March.

This does not mean a deal is by now fully discounted in the markets. This is because it will continue to be a positive surprise, in GREED & fear’s view, if the existing tariffs are dropped. The S&P500 is also not yet at the top of the assumed trading range, which GREED & fear would define simplistically as the September 2018 high of 2940.9.

If the stock market actually makes it to that old high on euphoria created by a trade deal, it may be in the context of renewed concerns that Fed tightening has not ended after all. But such a development would then probably put a ceiling on any further equity rally. For those who do not share GREED & fear’s view that a trade deal is likely to lead to a dropping of existing tariffs, it probably makes sense to start reducing exposure to the rally now.

(Source: Wood's weekly newsletter GREED & fear)

Christopher Wood

9:04 AM

Currency Check

Rupee opens at 70.74 against Thursday's close of 70.72

9:01 AM

HSBC on Q3 GDP data

The growth slowdown in the October-December 2018 quarter (6.6% versus 7% last quarter) was in line with expectations. Even in nominal terms, GDP growth slowed by 90bps to 11%. Of this, 40bps was due to real growth slowdown, and 50bps due to a lower deflator. 

Growth is likely to slow further in the next quarter. The government lowered its advance estimate of growth from 7.2% to 7% for the full fiscal year. This implies a growth of 6.3% in the January-March, 2019, quarter. 

 

However, there were some faint silver linings. One, some of the slowdown is due to base effects. In seasonally adjusted sequential terms, GDP growth grew 5.6%, higher than 4.8% in the previous quarter; though one could argue that it remains well below our potential growth estimate of 7.1%. Two, core GVA (GVA - agriculture - public services), a rough proxy of private sector activity, grew at a slightly faster clip of 7.1% versus 6.9% last quarter.

 

 

9:01 AM

Market at pre-open

8:59 AM

CARE Ratings on Q3 GDP numbers

The lower growth in GDP could prompt the RBI to lower interest rates as economic growth has been cited as a concern. This would however be contingent on the inflation reading for the coming months. We revise lower our GDP estimate for the Year from 7.4% to 6.9%.

8:58 AM

Market snapshot :: SMC Global

The market is likely to open flat today taking cue from SGX Nifty while Asian markets traded higher as investors digested mixed set of economic signals. U.S. Stocks slipped as stronger-than-expected economic data were offset by fruitless talks between President Donald Trump and North Korean leader Kim Jong Un, while U.S. futures were positive.

Data in China showed its factory sector contracted for a third consecutive month in February with the country’s manufacturing purchasing managers’ index at a threeyear low. European stocks closed mixed as investors kept abreast of geopolitical news taking place across the globe.

As per provisional figures, foreign institutional investors (FIIs)/ Foreign Portfolio Investors (FPIs) bought shares worth net Rs 3210.6 crore on 28th February 2019. Domestic institutional investors sold shares worth 5240.62 crore on that day.

8:57 AM

Jefferies on Future Retail

Future Retail  (FRETAIL IN):  Future Gets 7-Eleven for India

Rating  HOLD

Price Target Rs 505

Price Rs 410.60

Bloomberg BOM: FRETAIL IN

 

FRETAIL has become the master franchise to develop and operate 7-Eleven stores in India. The deal, in our view, is positive, as it not only shows 7-Eleven's (the largest convenience store retailer in the world) confidence in the capability of FRETAIL in India, but it will also benefit the company through access to global technology and processes. However, given the group's higher leverage, capital infusion remains a key monitorable.

8:49 AM

Derivative strategy on Federal Bank by HDFC Securities

Buy FEDERAL BANK March 85 call option at Rs 3 

Stop Loss: Rs 2.10

Target: Rs 5

 

READ MORE

8:41 AM

Top trading calls by Anand Rathi

GAIL: BUY

TARGET: Rs 358

STOP LOSS: Rs 330

 

The stock has formed a clear bullish Head and Shoulders pattern with a clear buy crossover in its momentum indicator. The neckline support is pegged at Rs 338 whereas the swing support is pegged at Rs 330. The target on the upside comes at Rs 358. READ MORE

8:35 AM

Top trading ideas by Prabhudas Lilladher

BUY KIRI IND (Kiri Industries Limited)

CMP: Rs 379.30

TARGET: Rs 420

STOP LOSS: Rs 365

 

The stock has been consolidating for quite some time now, maintaining the support base at Rs 374 levels and we anticipate a decent upward move from here on for higher targets. The relative strength index (RSI) has been hovering around the oversold zone and has indicated a trend reversal to signal a buy. With decent volume activity witnessed, we recommend a buy in this stock for an upward target of Rs 420 keeping a stop loss of Rs 370. READ MORE

8:29 AM

Today's picks

Coal India

Current price: Rs 228

Target price: Rs 224

 

Keep a stop at Rs 231 and go short. Add to the position between Rs 225 and Rs 226. Book profits at Rs 224.

 

Infosys 

Current price: Rs 734

Target price: Rs 745

 

Keep a stop at Rs 728 and go long. Add to the position between Rs 742 and Rs 744. Book profits at Rs 745. READ MORE

8:24 AM

Bulk deal on NSE as on Thursday

28-Feb-2019	CANDC	C & C Constructions Limit	ALPHA LEON ENTERPRISES LLP	BUY	1,39,271	11.51	-
28-Feb-2019	JETAIRWAYS	Jet Airways (India) Ltd.	CHANDARANA INTERMEDIARIES BROKERS PRIVATE LIMITED	BUY	6,11,811	218.28	-
28-Feb-2019	JETAIRWAYS	Jet Airways (India) Ltd.	CHANDARANA INTERMEDIARIES BROKERS PRIVATE LIMITED	SELL	6,05,211	218.45	-
28-Feb-2019	JETAIRWAYS	Jet Airways (India) Ltd.	TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED	BUY	11,21,582	218.88	-
28-Feb-2019	JETAIRWAYS	Jet Airways (India) Ltd.	TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED	SELL	11,21,582	219.09	-
28-Feb-2019	MINDPOOL	Mindpool Technologies Ltd	BHAVIN DINESH GODA	BUY	24,000	30.00	-
28-Feb-2019	MINDPOOL	Mindpool Technologies Ltd	HEM FINLEASE PVT. LTD.	BUY	56,000	29.18	-
28-Feb-2019	MINDPOOL	Mindpool Technologies Ltd	HEM FINLEASE PVT. LTD.	SELL	4,000	28.50	-
28-Feb-2019	MINDPOOL	Mindpool Technologies Ltd	SANTOSH BHANSALI HUF	BUY	1,20,000	29.62	-

8:19 AM

Rupee check

The rupee rebounded by 52 paise to close at 70.72 against the US dollar Thursday as investors wagered on de-escalation of tensions between India and Pakistan.