Market Wrap-up (29th October 2015):
Market slumps on Expiry day; Sensex below 27000:
Markets dragged for the fourth consecutive session as US Fed stirred hopes interest rate hike in the month of December. Nifty dropped down towards major psychological support of 8100 and it is now near to the important support of 8080-8050 while 8180 is seen as resistance in the coming session.
HEADLINES FOR THE DAY:
- The federal Reserve leaves the rate unchanged, i.e. 0 to 0.25% target range remains appropriate.
- The Government cleared 16 foreign investment proposals amounting to Rs 4,722 crore, which includes HDFC Capital and Ageon Religare Life Insurance Company.
- Monnet Ispat informed that it will undergo strategic debt restructuring (SDR) as per the guidelines so introduces by RBI.
- Rajesh Exports (REL) bagged an export order of Rs 1.25 bn of a special range of jewelry for the European markets.
Q2 RESULTS CORNER::
- Yes Bank Q2 earnings beat estimates by posting a net profit increase by 26.4% at Rs 610.4 cr (YoY); Gross NPA increased 15 bps and NPA rose 11 bps (YoY).
- NTPC Ltd recorded Q2 net profit as Rs. 28982.80 mn vs Rs. 20716.30 mn YoY; Total Income increased to Rs. 181739.00 mn vs Rs. 172673.20 mn YoY.
- Firstsource Solutions dipped despite of 1.1% rise in Q2 profit at Rs.61.9 cr vs Rs.61.2 cr YoY.
- Supreme Industries Q2 net profit after tax of Rs. 24.54 cr which is 2% down as compared to Rs. 25.06 cr of the previous year; Total Income increased from Rs. 759.92 cr to Rs. 774.30 cr.
- City Union Bank 15 per cent announced rise in its net profit at Rs.108 cr vs Rs.93.7 cr YoY; total income has increased by 7.2% to Rs. 829 cr vs Rs.773 cr YoY.
- Exide Industries Ltd down despite of Q2 net profit after tax of Rs. 1560.60 mn vs Rs. 1257.60 mn (YoY).
- Just Dial (JDL) closed lower with a loss of 11% on posting lower than expected results; although company’s profit rose 47.03% to Rs 463 mn from Rs 314.90 mn (YoY) and Revenues rose by 26.69%.
- MRF showed a rise of 45.38% in net profit at Rs 4,607.30 mn from Rs 3,169.10 mn (YoY) while Revenues declined marginally by 0.6%.
- Colgate-Palmolive (India) showed god increase of 21.11% in net profit to Rs 1,569.30 mn from Rs 1,295.80 mn (YoY) whereas Revenues rose marginally.
- Shriram Transport Finance Company up on rise in Q2 net profit of 11.88% to Rs 3,381.00 mn from Rs 3,022.10 mn.
- Bharat Forge dipped on marginal increase of 0.33% in Q2 profit to Rs 1,750.60 million from Rs 1,744.90 mn(YoY).
- Jet Airways slips 2% despite of rise in Q2 profits at Rs 875.90 mn vs Rs. 698.20 mn (YoY) and Total Income increased from Rs. 50157.20 mnto Rs. 54439.20 mn.
- Raymond dragged 4% on disappointing Q2 figures of Rs. 94.40 mn vs Rs. 681.20 mn (YoY).
- Torrent Power surged as the company posted a net profit after tax & minority interest of Rs. 2451.90 mn vs Rs. 230.70 mn (YoY).
- Pidilite Industries up 1% on increase of 38% (YoY) in Q2 net profit at Rs. 191.7 cr while Company’s revenue stood at Rs. 1320.06 cr.
NEWS AND ONLINE COMMODITY TIPS WHICH LED STOCKS ENDS IN GREEN ZONE::
- Pfizer up on talks with Botox-maker Allergan Plc to merge and it can be the biggest takeover deal this year.
- Mphasis surged 19% and hits 52 week high over four fold jump in trading volumes.
- TRF locked in the upper circuit as it reported net profit of Rs. 4.14 cr vs loss of Rs. 9 cr (YoY).
NEWS WHICH LED STOCK ENDS IN RED ZONE::
- BPCL dragged on back of talks to sell 24% stake in its 120,000 barrels per day Bina refinery in Madhya Pradesh.
- Glenmark dragged 4% as French drugmaker Sanofi decided not to pursue its deal related to Vatelizumab drug.
- Gujarat Pipavav dips more than 10% due to poor performance in Q2 at Rs 53 cr vs Rs 90 cr (YoY).
Results on 30TH October 2015::
- AJANTA PHARMA, APOLLOTYRE, ATUL, GUJARAT ALKALI, ICICI BANK, ITC LTD, IPCA LAB, KARNATAKA BANK, KOTAK MAHINDRA BANK, L&T, MAHINDRA LIFE, SUZLON, TITAN is coming up with its Q2 (Quarter 2) results on 30TH October, Friday.
Indian markets traded with weak sentiments; closed down.
- Indian markets closed down over the US Fed’s comment on the possibility of increasing interest rates in the month of December. FPIs might start selling their holdings in EMs (Emerging Markets) like India and China.
- Nifty is expected to see selling in coming sessions. Nifty is trading at its crucial support of 8100 in spot; buying sentiments will emerge in intraday only if it gives closing above 8150 level.
Pharma gains today; Telecom stocks continued their decline.
- Pharma being a defensive sector traded moderately today. It has gained mildly and disrupted its declining trend from last few days. Telecom is bearish due to consumer friendly policies of government.
- Pharma and FMCG will gain or atleast will be safer to invest during declining trend. Pharma stocks are also gaining over weak INR. Pharma companies generates revenue though exports.
Coalgate-Palmolive posted better than expected results; closed down over profit booking.
- Coalgate Palmolive Future is looking good till and above Rs. 980. It has posted good results but went down over profit booking which seems to be a temporary phase. FMCG looks promising if commodity prices goes up.
- Coalgate Palmolive Future might go up if closes above Rs. 980 in short term.
Interglobe Aviation IPO got thumbs up from the investors. Looks positive from investment perspective.
- Interglobe Aviation Pvt Ltd’s IPO got subscribed by more than 3 times today. Investor Rakhesh Jhunjhunwalla too has invested under the HNI category at the upper end of the price range, i.e. close to Rs. 765.
- Aviation stocks looks good. However, Indigo might see selling pressure on the day of listing.
Free MCX Tips & It’s Updates-
Gold looks bearish and might get settle in $1148-$1152 range for now.
- After the US Fed’s commentary on chances of increasing rates by mid December, Gold tumbled down till $1151. Gold is expected to remain bearish in Comex but less in MCX.
- Gold is expected to trade close to its support of $1150. Gold is less expected to sustain at higher levels after the US Fed’s announcement on interest rate hike.
Crude Oil prices went up but it is less likely to move any further.
- Crude Prices are not expected to move up as fundamental demand of oil and Shale Oil production is still there with the OPEC Oil.
- Crude is expected to see little correction from present. It will trade in the range of $44.5 – $47. Its immediate resistance is at $46.40.
- European stocks going through correction on the back of US Fed announcement.
- European markets opened lower and are trading with weak sentiments. ECB and other central banks in Europe are planning to inject more money to counter inflation whereas US is planning to absorb USDs from the world. Mismatch of USD with other currency will make it more strong.
- Weaker European currencies with respect to USD will make their exports go cheap. Europe will gain because of this as inflation will surge up. European markets will gain in mid term but will lose rigth now.
Data due tomorrow: Eurozone’s Unemployment Data; Bank of Japan’s Monetary Policy Statement.
- US will post its unemployment claim along with GDP data today in evening. If it comes good than chances of increasing rates will become more firm. BoJ’s policy stance will be in focus tomorrow.
- BoJ is expected to infuse more money into the system in order to support Japan’s economy.
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