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Business News›Traders’ Diary: Buy fundamentally sound companies
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21 Sep, 2018 | 08.31PM IST
Traders’ Diary: Buy fundamentally sound companies
Watch this space as we bring you LIVE updates of the day's proceedings from Dalal Street.
!1 New UpdateClick here for latest updates
We previously mentioned the importance of 11550 being not breached and for Nifty to reclaim its bullish trend it was very much necessary and below that we continue to maintain sell on advances as a strategy. That level is now placed at 11300 and we expect Nifty to continue its downtrend for lower targets of 10600 - 10700
- Mustafa Nadeem, CEO, Epic Research
Overall sentiment has turned cautious and we feel that with rising bond yields interest rate sensitive stocks may come under pressure as their margins erode and cost of borrowing rises. With the rupee still trading above the 72 mark, we feel export driven businesses such as pharma are likely to perform well. We also prefer consumer companies, as some of them have corrected recently and volume growth visibility is good for names like Dabur, HUL and Marico. We expect banks and NBFCs to remain under pressure till bond yields remain high and there is over ownership across investors
- Hemang Jani, Head - Advisory, Sharekhan
Buy/Sell Data
FPIs net buy Rs 760.70 crore and DII net buy Rs 497.03 crore today (provisional)
It was gut wrenching day for stock market today, with a free fall across sectors. The day started with YES Bank’s free fall, but by end of the day, there were so many similar events. The macro meltdown in terms of relentless rupee weakness and bond yield hardening has finally shown its impact in full vigour on the market. In the current scenario where there are very few places to hide, investors should focus on export-oriented sectors and zero-debt companies
- Jagannadham Thunuguntla, Sr. VP and Head of Research (Wealth), Centrum Broking
Nifty remained under pressure for the entire week. The Nifty in the process broke the crucial support at 11,170.0, indicating it could test lower levels. Technically, the Nifty remains in short term downtrend and further downsides are likely once the immediate support of 11,090 is broken. Any pullback rallies could find resistance at 11,250
- HDFC Securities
Nifty fell down by around 480 points from its high of 11,346 to 10,866 levels and formed a strong Bearish candle on daily scale with its biggest intraday fall in last many months. However it recovered by around 300 points from its panic lows but overall bears are keeping their tight grip on the market. It has also broken its support of 11171 and till it doesn’t cross and hold above 11333 zones, overall weakness could remain intact for a decline towards 11000 and lower zones
- Chandan Taparia, Technical & Derivative Analyst, Motilal Oswal Securities
We usually see such volatile moves prior to the market bottom or top but it's too early to confirm the same. We believe the coming week would begin in some clarity. Traders should restrict leveraged positions in the meanwhile and prefer only hedged trades. Investors, on the other hand, can start accumulating fundamentally sound counters on dips with medium to long term view
- Jayant Manglik, President, Religare Broking
Market Today
Nifty - 11143 (-91)
Sensex - 36842 (-280)
Gold - 30791 (+192)
Silver - 37729 (+470)
Crude Oil - 5124 (+61)
Dollar/Rupee - 72.23
Biggest Gainers - PAGEIND, SANOFI, WABAG, PHOENIX
Bigget Losers - DHFL, YESBANK, INFIBEAM, DHANUKA
Most Active - YESBANK, DHFL, RELIANCE, AXISBANK
Advances - 332 | Declines - 1478 Unchanged - 254
Sensex - 36842 (-280)
Gold - 30791 (+192)
Silver - 37729 (+470)
Crude Oil - 5124 (+61)
Dollar/Rupee - 72.23
Biggest Gainers - PAGEIND, SANOFI, WABAG, PHOENIX
Bigget Losers - DHFL, YESBANK, INFIBEAM, DHANUKA
Most Active - YESBANK, DHFL, RELIANCE, AXISBANK
Advances - 332 | Declines - 1478 Unchanged - 254
Market cautiously viewed YES Bank’s sharp correction and RBI’s open market operation. Later, the tension escalated under the fear of liquidity crunch and tighter norms by the RBI. Cascading impact was seen in high beta and valued stocks and sectors, in expectation of tightened liquidity
- Vinod Nair, Head of Research, Geojit Financial Services
YES Bank tanks 28% on Rana Kapoor exit; m-cap dives by Rs 22,000 crore
Shares of YES Bank plunged 28 per cent on BSE on Fridayafter the RBI asked its managing director and CEO Rana Kapoor to step down after an extended term till January 31, 2019. Consequently, the market capitalisation of the company plunged by over Rs 22,000 crore today.
Freaky Friday: Sensex swings 1,500 pts, ends 280 pts down; Nifty below 11,150; VIX surges 10%, DHFL tanks 45%
Check out the top 5 NSE losers
Price as on 21 Sep, 2018 03:26 PM, Click on company names for their live prices.
No rating downgrade from any rating agency
- DHFL
The first thing about markets are prices, the second is earnings and all the fundamentals. So obviously when prices fall 50-55%, the first thing that we want to look for is if there is any big issue and if the issue is not that in print, then normally it is a knee-jerk reaction. All said and done, if you have good companies, you cannot be a prisoner of prices.
- Basant Maheshwari
Sensex drops nearly 700 pts
LIC to exit Tata Sons
#BreakingNews | @LICIndiaForever stakes above 15% in Tata Sons to be diluted immediately #ETMartkets https://t.co/Dc5cCfXkAa
— ETMarkets (@ETMarkets) 1537520772000Lack of clarity about IL&FS exposure is leading to knee-jerk reaction: Sanjiv Bhasin
Sanjiv Bhasin, @IIFLMarkets on the #market crash #ETMarkets https://t.co/VbhZQiI5Nt
— ETMarkets (@ETMarkets) 1537520530000Market Update | Sensex down over 400 pts
Safir Anand on panic selling in market
In one day of bottom fishing caused by panic, those lucky enough, have earned more than those invested earned in th… https://t.co/VVLXzjNO86
— Safir (@safiranand) 1537518113000I feel this panic is unwarranted and we are closely monitoring the cost of funds as far as our yield and we are able to maintain the spreads consistently in the last 10 years and this will continue to be in the future also.
- R Varadarajan, MD, Repco Home Finance
The cost of borrowing for NBFCs is going to shoot up and they may face challenge in raising money in light of recent news on IL&FS. However, this knee-jerk reaction is baffling.
- Hitesh Agrawal, EVP & head - retail research at Religare Securities
NBFC stocks bleed in a crashing market; DHFL plunges 57%
A strong spell of selling in most non-banking financial firms sank Sensex nearly 1000 points during Friday's session. Shares of Dewan Housing Finance Corporation (DHFL) (down 57.42 per cent) looked gutted. Indiabulls Housing Finance (down 29.88 per cent), IL&FS Investment Managers (down 19.84 per cent) and Religare Enterprises (down 19.52 per cent) suffered strong losses.
India VIX, the fear gauge, spiked over 11% to 15.58
Sensex collapses 1,000 points, recovers swiftly
The domestic equity market came under heavy selling pressure on Friday afternoon, as Sensex crashed over 1,000 points while the Nifty50 broke below the 10,900 level.
The selloff was so intense that Sensex crashed over 800 points within a matter of minutes. The recovery was also equally swift as, the index immediately recovered over 700 points.
The selloff was so intense that Sensex crashed over 800 points within a matter of minutes. The recovery was also equally swift as, the index immediately recovered over 700 points.
All Nifty indices in the red
Midcap index collpases 1,000 pts
DHFL tanks 50%, loses Rs 10,000 crore in m-cap
Nifty Realty pack slips over 1%; Godrej Properties, IB Real Estate weigh
Strong losses in shares of Godrej Properties (down 5.82 per cent), Indiabulls Real Estate (down 3.27 per cent) and Housing Development & Infrastructure (HDIL) (down 1.95 per cent) dragged realty pack down in Friday's session. The Nifty Realty index was trading 1.22 per cent down at 255 around 12:33 pm.
Sensex erases 300-pts gain, trades in the red
Midcaps underperform Sensex; RCom, Apollo Hospitals drag
Midcaps were underperforming Sensex in Friday's afternoon session. The BSE Midcap index was trading 0.09 per cent down at 15,853 around 12:16 pm on Friday, while the benchmark Sensex was 0.62 per cent up at 37,352 at that time.
Over 85 stocks defy bullish market mood, hit 52-week lows on NSE
Over 85 stocks, including Yes Bank, Jet Airways (India), JK Tyre & Industries and Rane Holdings, defied bullish mood of domestic market, hitting 52-week lows on NSE during Friday's session.
Rolta India, Sagar Cements, AGC Networks, Bafna Pharmaceuticals, BEL, BEML, Byke Hospitality, Capacit'e Infraprojects, Career Point and D B Realty also featured among stocks that touched 52-week lows.
Rolta India, Sagar Cements, AGC Networks, Bafna Pharmaceuticals, BEL, BEML, Byke Hospitality, Capacit'e Infraprojects, Career Point and D B Realty also featured among stocks that touched 52-week lows.
Sun Pharma gets Australia TGA nod for plaque psoriasis treatment drug
Drug major Sun Pharmaceutical Industries Friday said it has received approval from the Australian health regulator Therapeutic Goods Administration's (TGA) for its speciality product, ILUMYA (tildrakizumab), used for the treatment of adults with plaque psoriasis.
Up to 6,500% surge! Check out the recent multibaggers you missed
Spotting a stock early before a change in business dynamics can help you earn multibagger returns on Dalal Street.
Investors who got their thesis right must have been able to pick at least a couple of the 45 stocks from the BSE500 index, which have rallied over 1,000 per cent between September 2013 and this month. This means each of these stocks multiplied investor wealth by over 10 times in five years.
Investors who got their thesis right must have been able to pick at least a couple of the 45 stocks from the BSE500 index, which have rallied over 1,000 per cent between September 2013 and this month. This means each of these stocks multiplied investor wealth by over 10 times in five years.
Aavas Financiers IPO pricey, but can be a long-term bet
Jaipur headquartered Aavas Financiers plans to raise Rs 400 crore through an initial public offering (IPO) to infuse capital in the lending business.
Disbursements grew at a rapid pace of 65 per cent annually between FY14 and FY18 to Rs 2,050 crore. Its gross NPA was 0.34 per cent at the end of FY18. A better control of credit quality has resulted in improved credit rating to A+ in FY18 from BBB+ in FY14 allotted by rating agency CRISIL. This has lowered borrowing cost significantly to 8.6 per cent from 12.3 per cent during the period.
Disbursements grew at a rapid pace of 65 per cent annually between FY14 and FY18 to Rs 2,050 crore. Its gross NPA was 0.34 per cent at the end of FY18. A better control of credit quality has resulted in improved credit rating to A+ in FY18 from BBB+ in FY14 allotted by rating agency CRISIL. This has lowered borrowing cost significantly to 8.6 per cent from 12.3 per cent during the period.
Nifty option OI concentration (Source: SMC)
Sensex jumps over 300 pts: Five key factors driving the market rally
<b>1. Rupee takes on more strength
<br /></b>The rupee remained on the upswing. It firmed another 53 paise to trade at over a two-week high of 71.84 against the US dollar this morning. Increased selling of the American currency by exporters and banks accelerated the climb.
<br /><br /><b>2. India on track to $5 trillion economy: PM
<br /></b>Prime Minister Narendra Modi has said his government will continue to take tough decisions and expressed hope that the size of the Indian economy will double to USD 5 trillion in the next 5-7 years.
<br /><br /><b>3. Global leads shine
</b><br />Asian stocks scooped up gains on Friday after Wall Street’s S&P 500 set a new all-time high. There is a realisation that Beijing’s and Washington’s fresh exchange of tariffs may be less damaging than initially feared.<br /><br /><b>4. Crude prices fall further
<br /></b>Oil prices eased on Friday after falling in the previous session as US President Donald Trump urged OPEC to lower crude prices ahead of its meeting in Algeria this weekend.
<br />
<br /><b>5. Govt hikes small savings rate
<br /></b>In a bonanza for small savers, the government has increased interest rates on schemes such as the National Savings Certificate and the Public Provident Fund by up to 40 basis points for the October-December quarter. <br />
Sugar stocks fall after competition watchdog imposes penalty
- Shares in Bajaj Hindusthan Sugar Ltd, Dalmia Bharat Sugar and Industries and Balrampur Chini Mills plunge as much as 3.2%-9.1%
- Competition Commission Of India (CCI) said on Thursday imposed a penalty of Rs 380.5 million ($5.29 mln) on sugar mills and their associations for rigging bids in respect of joint tender floated by oil marketing cos for procurement of ethanol for blending with petrol
- Bajaj Hindusthan said after market hours on Wednesday CCI imposed a penalty of Rs 123.5 million; co said it will appeal against the order
- Bajaj Hindusthan's stock posts biggest intraday per centage fall since May 14
- Bajaj Hindusthan's stock gained 72% in the last seven sessions following a hike of up to 25% in ethanol purchase prices and on hopes govt may consider a proposal to get mills to export 5 million tonnes of sugar by incentivising overseas sales in 2018/19 season
Jet Airways set for four-year low as tax officials check books
Shares of Jet Airways India Ltd. headed for their lowest level in almost four years after income-tax authorities conducted a “survey” at its offices, the latest trouble for an airline that’s been struggling to pare losses.
The stock fell as much as 7.6 per cent in Mumbai on Friday, the biggest intraday loss since Aug. 10. The decline was compounded by an incident Thursday, when pilots flying one of its aircraft forgot to maintain cabin pressure during ascent, causing injuries to many passengers.
The stock fell as much as 7.6 per cent in Mumbai on Friday, the biggest intraday loss since Aug. 10. The decline was compounded by an incident Thursday, when pilots flying one of its aircraft forgot to maintain cabin pressure during ascent, causing injuries to many passengers.
Safir Anand expects Indian markets to do well from here on
Looking at the rs last 2 days, trump focus on oil, Usa consumption data, positives by ceos of jpmorgan, MS, India b… https://t.co/qn6B7Sou5g
— Safir (@safiranand) 1537503640000Check out the most active stocks on NSE
Price as on 21 Sep, 2018 10:27 AM, Click on company names for their live prices.
ET Radio: Let's talk business & markets
Rupee at 2-week high, gains 53 paise in early trade
Continuing its uptrend, the rupee firmed by another 53 paise to trade at over a two-week high of 71.84 against the US dollar in early trade Friday at the Interbank Foreign Exchange on increased selling of the American currency by exporters and banks.
OPENING BELL: Sensex jumps over 200 pts, Nifty above 11,300; YES Bank plunges 20%, Jet Airways 5%
Pre-open session: Sensex gains 300 pts, Nifty50 nears 11,250; Rupee opens at 71.85 against dollar
Singapore sets stage for positive opening
Nifty futures on the Singapore Exchange traded 40.50 points higher at 11,352, early this morning, indicating a positive start for the Nifty50 in Mumbai trade.
Tech view: Three Black Crows on Nifty charts
On Wednesday, the formation of Three Black Crows candle and lower highs and lower lows on the daily chart indicated that the bears were having a tight grip on the market, said Chandan Taparia of Motilal Oswal Securities, who believes the index may drift towards the previous swing high of 11,171 soon.
Asian shares extend gains
Asian stocks extended gains on Friday after Wall Street's S&P 500 set a new all-time high, while the dollar slipped as investors viewed Beijing's and Washington's fresh exchange of import tariffs as less harmful than initially feared.
Dow, S&P hit record highs
Trade-sensitive industrial stocks led the Dow Jones Industrial Average to a record closing high on Thursday, the last of Wall Street's main indices to fully regain ground since a correction that began in January. All three major US indices closed higher, as trade worries subsided.
Oil prices slip
Oil prices dipped on Friday after falling in the previous session as US President Donald Trump urged Opec to lower crude prices ahead of its meeting in Algeria this weekend. International benchmark Brent crude for November delivery was down 3 cents at $78.67 a barrel by 0207 GMT.
Morgan Stanley to invest more in India
Morgan Stanley will expand its businesses and invest more capital in India as Prime Minister Narendra Modi’s businesslike approach to governance and development through technology makes India an exciting opportunity for investors and industry, CEO James Gorman has said.
No Kapoor at YES Bank may roil stock
Yes Bank shares may drop on Friday as most top brokerages downgraded the stock after the Reserve Bank of India asked its managing director and CEO Rana Kapoor to step down after an extended term till January 31, 2019.
RBI swapping its stock of US T-Bills with gold
RBI appears to be changing its foreign exchange reserves management strategy to rein in its mark-to-market losses with the US Federal Reserve increasing interest rates. Data suggests the RBI is swapping its stock of US treasury bonds with gold.
T and T Infra files IPO prospectus with Sebi
Construction company T and T Infra has filed draft papers with markets regulator Sebi to float an initial public offer (IPO). The initial share-sale offer comprises up to 75 lakh equity shares of the company, according to the draft red herring prospectus filed with Securities and Exchange Board of India (Sebi) Tuesday.
SBI reshuffles portfolio of top management
State Bank of India has reshuffled the portfolio of its top management following the exit of five deputy managing directors as the chief executives of other state-run banks.
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