Market Pulse

The stock market reversed intraday losses to enter into positive terrain in mid-morning trade. Key indices started the session on a subdued note and traded in negative zone till morning trade on mixed Asian cues, data showing surge in India's consumer price inflation and a moderate growth in industrial production. Indices reversed losses in mid-morning trade.

The S&P BSE Mid-Cap index rose 0.23%, underperforming the Sensex. The S&P BSE Small-Cap index advanced 0.4%, matching the Sensex's gains in percentage terms.

Overseas, Asian stocks were mixed as investors awaited the conclusion of the Federal Reserve's two-day policy meeting. US stocks rose yesterday, 12 December 2017 amid growing optimism that Republican lawmakers would be able to revamp the corporate tax system. Wall Street also looked to the Federal Reserve as its two-day policy meeting kicked off.

The US Federal Reserve's Federal Open Market Committee (FOMC) two-day meeting which began yesterday, 12 December 2017, on interest rate decision, concludes later in the global day today, 13 December 2017. The Federal Reserve left the target range for its federal funds rate unchanged at 1% to 1.25% during its November 2017 meeting as widely expected.

Closer home, the breadth, indicating the overall health of the market, was positive. On the BSE, 1,337 shares rose and 971 shares declined. A total of 131 shares were unchanged.

IT stocks nudged higher. Tech Mahindra (up 0.96%), TCS (up 0.71%), Persistent Systems (up 0.47%), Oracle Financial Services Software (up 0.35%) and Infosys (up 0.34%) gained. HCL Technologies (down 0.73%) edged lower.

On the macro front, the all-India general inflation based on the consumer price index (CPI) surged to 4.88% in November 2017, compared with 3.58% in October 2017. The core CPI inflation increased to 4.69% in November 2017 compared with 4.4% in October 2017. The inflation data was released by the government after market hours yesterday, 12 December 2017.

India's industrial production rose at moderated pace of 2.2% in October 2017 over October 2016, while showing a deceleration in growth from 4.1% increase in September 2017, data released by the government after market hours yesterday, 12 December 2017 showed.

Today's Calls:

#Buy MBL Infrastructure Ltd at around Rs.24, for a short term target of Rs.31. The Company could emerge as India’s first road-builder to achieve a successful insolvency resolution on about Rs 1,700 crore of outstanding loans, with the promoter agreeing to infuse more capital into the business, two people familiar with the process told ET.  MBL promoter Anjanee Kumar Lakhotia will now bring in about Rs 120 crore, nearly five times more than the capital he had promised initially, one of the people cited above said.
According to a report in Financial Express, 16, November, '17: Recently, NHAI had modified the model concession agreement (CA) of HAM projects to address the developers’ challenges during the construction phase as well as aid the liquidity situation during the initial period of implementation. Maulesh Desai, associate director, CARE Ratings, is of the view that the timely release of funds towards the construction cost has increased confidence among lenders for the new model. Desai added that he expects issues related to right of way (RoW) to be resolved by NHAI in the near to medium term, resulting in increased traction in the execution of projects awarded till FY17. I am expecting the stock to give multi-bagger returns going forward. 

#The shares of Sulon Energy Ltd (Rs.13.70) could do well, as the Crude Oil prices are moving up in the international markets. The company was able to cut short its debt portfolio during the last couple of years, substantially. Buy with a short term target of Rs.22.

#The shares of Uttam Galva Steels Ltd, in which the world's largest steel maker ArcelorMittal had bought 29.05% stake in 2009, is consolidating around the CMP of Rs.23. You should accumulate the scrip in every decline, as according to a report published in The Business Standard, November 30, 2017 ArcelorMittal has made a strong pitch as an eligible bidder for distressed assets currently going through insolvency resolution. In other words they could increase their stake in Uttam Galva Steels Ltd.

#My recommended SKM Egg Products Ltd (Rs.101) at around Rs.78, today touched Rs.1020.90 intra-day, up  more than 13%%, intraday. Those who are still holding the share can book at least 50% of profits and hold the rest with a SL of Rs.97.

~~ with inputs from Capital Market - Live News