Monday, October 30, 2017

Market Pulse
Key indices settled on a flat but divergent note, after witnessing intraday volatility on last Friday. The Sensex closed with a minuscle gains of 10.09 points or 0.03% to settle at 33,157.22, while the Nifty settled with a small loss of 20.75 points or 0.2% to close at 10,323.05; inspite of support coming from firm global cues. Moreover, the Sensex settled at record closing high, gaining for the fifth straight day, while the Nifty snapped four-day winning streak.

The S&P BSE Mid-Cap index rose 0.28%. The S&P BSE Small-Cap index gained 0.27% - both the indices outperforming the Sensex. The breadth of the market, was positive. On the BSE, 1,389 shares rose and 1,313 shares declined. A total of 150 shares remained unchanged.

On last Friday, the Pharma stocks gained. Sun Pharmaceutical Industries (up 3.65%), Cadila Healthcare (up 1.71%), Glenmark Pharmaceuticals (up 1.78%), Aurobindo Pharma (up 1.46%), Dr Reddy's Laboratories (up 2.12%), Alkem Laboratories (up 0.23%) and Lupin (up 0.38%) advanced. In this context, I am recommending a microcap from the pharmaceutical space, specially for the regular blog readers. The name of this share has not been disclosed to anyone before; so you can be rest assured that, this blog readers are getting a maiden scrip name, Free of Charge.
Buy Kopran Ltd at Rs.69.25, for short term targets of Rs.77-78. The 52-week high for the scrip in the BSE is Rs.102.50.  
Kopran is an integrated Pharmaceutical Company from the Parijat Enterprises Ltd group. It manufactures a diversified range of products starting from Active Pharmaceutical Ingredients(APIs) to Finished Dosage Forms. It is focused on improvement in technology and is launching new products, duly integrated with their sophisticated Research & Development department -  it has a good research portfolio. It is among the top manufacturers, who influence the Global Nsaids Market. The Global Anti-inflammatory Drugs Market is set to grow exponentially, following rapid Industrialization/Urbanization. The market cap of the company is Rs.299.52 Cr against FY17 revenues of Rs.190.39 Cr. The P/E of Kopran Ltd is 12.61 against the industry P/E of 29.04 - this give a lot of scope for appreciation. However, pleases keep a SL of Rs.65, for any short term trade or in case the buy does not work.

The stock of RCom Ltd (Rs.15.90) has been going down and down, with no hope of improvement in the company's fundamentals in the short term. I had already given a sell call on the scrip on last  week and I still maintain the same. Exit the scrip on rise.

It is good going for the share of Shilpi Cable Technologies Ltd (Rs.22.60), as the stock has again started hitting the UCs I am betting on a target of Rs.26-27 in the short term.

Foreign portfolio investors (FPIs) sold shares worth Rs.640.95 crore on Friday, 27 October 2017, while the domestic institutional investors (DIIs) bought shares worth Rs.56.57 crore on Friday, 27 October 2017, as per provisional data.

Among corporate news, ICICI Bank's net profit fell 33.65% to Rs.2058.19 crore on 17.55% decline in total income to Rs.18763.29 crore in Q2F18 over Q2 September 2016.  The bank's gross non-performing assets (NPAs) net of write-off stood at a whooping Rs.44488.54 crore as on 30 September 2017, as against Rs.43147.64 crore as on 30 June 2017 and Rs.32547.50 crore as on 30 September 2016.
The ratio of gross non-performing customer assets (net of write-off) to gross customer assets stood at 7.87% as on 30 September 2017 as against 7.99% as on 30 June 2017 and 6.12% as on 30 September 2016. The ratio of net non-performing customer assets to net customer assets stood at 4.43% as on 30 September 2017 as against 4.86% as on 30 June 2017 and 3.21% as on 30 September 2016. The bank's provisions and contingencies declined 36.42% to Rs 4502.93 crore in Q2 September 2017 over Q2 September 2016.
Chanda Kochhar, the CEO & MD of ICICI Bank, has doomed this largest private sector bank of India, with worst type of financial mismanagement -- the shareholders wealth going down the drains of Dalal Street. I was apprehensive about her appointment from the day one; inspite of the media were going 'ga - ga' about her 'so-called capabilities'. I have often observed that the global media tries to 'bite more than it can chew', when any woman joins some important positions...A lacuna of sorts?
I had written about the mismanagement of the bank (ICICI Bank) long back, when it took huge delays in getting the cheque book and then not receiving it at all in my home address -- the bank officials asking me to collect from their office.....following the write up in this blog, the ICICI Bank sent me a mail, threatening legal action; but later apologized. I have closed my ICICI Bank account long back and would not  opt for the same in the short term, after observing such financial mess in the bank's book.
After such repeated huge write - offs, I would therefore suggest you to go for any Government owned bank to keep your hard earned cash, instead of staying put in battered Private Sector Banks like ICICI Bank. No one knows what is in store for future (for such private banks); though the government has decided to capitalize some PSBs.
Do you remember, the Global Trust Bank (GTB) episode? The shareholders got almost nothing at the end of the day; though Goldman Sachs owned 4%, the International Finance Corporation owned 5% and Oriental Bank of Commerce acquiring GTB on 14 August 2004.

The market may open higher today and fresh highs could be possible as long as Nifty  trades above 10,200. However, the traders are suggested to SELL on the opening bell, followed by cover - up during the market hours. The compulsory traders are also suggested to keep their positions light and avoid taking leveraged positions - instead of the indices, it would be better if they focus on Individual stocks.  I will be recommending another small cap for the Premium Group members -- watch out for the name in this blog, ether in the later hours of the day or tomorrow.

--- With inputs from Capital Market - Live News.
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