Wednesday, January 03, 2018

Market Pulse
The Key benchmark indices are trading in the Green during the morning trade. At 11.16 am, the Sensex was seen at 33,905.22 up 92.96 points or 0.27%. The Nifty was trading at 10,477.75 up 35.55 points or 0.34%.

Among secondary barometers, the BSE Mid-Cap index was up 0.61%. The BSE Small-Cap index was up 1.06%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than three gainers against every loser on BSE. 1,798 shares rose and 563 shares fell. A total of 87 shares were unchanged.

Metal shares were in demand. Hindustan Copper (up 3.85%), Jindal Steel & Power (up 2.53%), JSW Steel (up 2.31%), Vedanta (up 1.83%), Steel Authority of India (up 1.80%), NMDC (up 1.48%), Hindalco Industries (up 1.42%), National Aluminium Company (up 1.23%), Hindustan Zinc (up 1.18%) and Tata Steel (up 0.85%), edged higher. Bhushan Steel was down 0.45%.

Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for March 2018 delivery was currently down 0.47% at $3.2625 per pound on the COMEX.

Power generation stocks were in demand. Adani Power (up 1.85%), NHPC (up 1.26%), JSW Energy (up 1.17%), Jaiprakash Power Ventures (up 1.05%), Tata Power (up 0.70%), Torrent Power (up 0.68%), CESC (up 0.50%), Reliance Infrastructure (up 0.29%), NTPC (up 0.28%) and GMR Infrastructure (up 0.23%), edged higher. Reliance Power was down 2.28%.

State-run Coal India was up 0.18%. State-run Power Grid Corporation of India was up 0.80%.

Yash Papers jumped 10.61% after the company said that the commercial production of tableware unit (phase - 1) of the company started from 2 January 2018. The announcement was made after market hours yesterday, 2 January 2018.

Overseas, most Asian shares were trading higher, tracking positive cues from US market. Japanese market was shut.

US stocks jumped overnight, with major indexes rallying to record levels in a broad rally. The Dow Jones Industrial Average rose 0.4%. The S&P 500 rose 0.8%. The Nasdaq Composite Index gained 1.5%.

Today's Calls:
#Buy State Bank of India Ltd at around Rs.305, for short term targets of Rs.309--310. With the Indian Banking system bearing the brunt of huge NPAs, thanks to loan defaulters, the country's largest lender State Bank of India collected Rs 1,771 crore during April- November 2017 as penalty from customers who couldn't maintain a minimum monthly average  balance (MAB) in their accounts. The money thus collected as penalty charges is more than the bank’s July-September quarter net profit of Rs 1,581.55 crore and nearly half of the Rs 3,586 crore it earned as net profit April-September, reported The Indian Express. In October last year, the government of India had announced a Rs.2.1 lakh crore capital infusion plan for state-owned banks, of which Rs.1.35 lakh crore was to be raised through bonds.

#Those who are holding the shares of Dena Bank Ltd (Rs.25.50) can continue to hold with a SL of Rs.24.60. There was recent media report that the government is likely to immediately infuse about Rs 10,000 crore in six state-run lenders, including United Bank of India, Dena Bank and Bank of Maharashtra, over the next few weeks, a finance ministry official said. I am expecting the shares of PSB to rise, after the government of India passed the new Insolvency Code.

#Those who are holding the shares of Housing Development & Infrastructure Ltd can continue to do the same with a SL at Rs.61.40. I feel most of the investors have not understood the theory that HDIL has less debt and more land bank that Unitech Ltd or DLF Ltd, in the Mumbai Metropolitan Region. Moreover, its Face Value is Rs.10, unlike Rs.2 (in case of Unitech Ltd and DLF Ltd). Therefore, I feel it has a better chance of appreciation than the Unitech Ltd in the short term.

#The Shares of MBL Infrastructure Ltd (Rs.27) is preparing for the next round of upmove after
Photo: The Economic Times
changes took place in the Insolvency Code. Whether it is the promoter or a good strategic investor someone will soon take charge of the company. MBL Infrstructure Ltd has a good order book position -- only problem is the debt of Rs.1700 crore. The government of India, said last week, that loan defaulting promoters can take part in the bidding process provided they clear all the dues. The promoters of MBL Infrastructure Ltd has already expressed their desire to bring in Rs.120 crore and is in discussion with the lenders. I am sure soon, a positive outcome for the shareholders will come. Add the scrip in every market decline and keep holding.

#A Buy on Jet Airways Ltd was given at around Rs.Rs.522-534 in April last year (2017). The scrip made an intraday high of Rs.845 today, which is also its 8-year high. The investors could do well to book at least 85% of profits and wait for dips to re-enter.

#Those who are holding the shares of Reliance Infrastructure Ltd from around Rs.539 can book partial profit again  at Rs.572 and hold the rest with a SL at Rs.546. The next target for the scrip is Rs.593.

#Those who are holding the shares of Reliance Communications Ltd from Rs.12 onward, can book out complete profits at around Rs.31-32 and wait for the scrip to stabilize before thinking of fresh entry. I recommended the share of RCom to some of my BMA Wealth Creator Ltd's clients at above Rs.12.

#The long term investors who are still holding the shares of Orchid Pharma Ltd (Rs. 20.10), formerly Orchid Chemical and Pharmaceuticals Ltd, should book 15% of profits and hold the rest with a SL at Rs.17. 

~~ with inputs from  Capital Market - Live News...
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