Friday, January 05, 2018

Market Pulse
Key benchmark indices extended early gains and hit fresh intraday high in morning trade. At 10:30 IST, the barometer index, the S&P BSE Sensex, was up 158.16 points or 0.47% at 34,127.80. The Nifty 50 index was up 46.25 points or 0.44% at 10,551.05. The Sensex was trading above the psychological 34,000 mark after opening above that level. Positive global cues boosted sentiment.

The Sensex and the Nifty, both, hit record high levels in morning trade. The Sensex rose 205.57 points, or 0.61% at the day's high of 34,175.21 in morning trade, its record high level. The index rose 51.20 points, or 0.15% at the day's low of 34,020.84 in early trade. The Nifty rose 58 points, or 0.55% at the day's high of 10,562.80 in morning trade, its record high level. The index rose 17.50 points, or 0.17% at the day's low of 10,522.30 in early trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.61%. The BSE Small-Cap index was up 0.96%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,731 shares rose and 723 shares fell. A total of 109 shares were unchanged.

Most metal shares rose. Bhushan Steel (up 3.58%), JSW Steel (up 3.25%), NMDC (up 1.78%), Hindustan Copper (up 1.65%), Tata Steel (up 1.53%), Vedanta (up 1.39%), National Aluminium Company (up 1.14%), Hindalco Industries (up 1.04%), Hindustan Zinc (up 0.3%) and Steel Authority of India (up 0.15%), edged higher. Jindal Steel & Power was down 0.25%.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for March 2018 delivery was currently up 0.21% at $3.27 per pound on the COMEX.

FMCG shares were mixed. Bajaj Corp (up 1.14%), Britannia Industries (up 0.84%), Tata Global Beverages (up 0.82%), Colgate Palmolive (India) (up 0.50%), Jyothy Laboratories (up 0.42%), Hindustan Unilever (up 0.32%) and GlaxoSmithKline Consumer Healthcare (up 0.31%), edged higher. Godrej Consumer Products (down 0.2%), Nestle India (down 0.26%), Procter & Gamble Hygiene & Health Care (down 0.28%), Dabur India (down 0.45%) and Marico (down 0.45%), edged lower.

Overseas, most Asian shares rose as US jobs data pointed to firm economic growth. US stock indices closed at all-time highs on Thursday, while the Dow topped the 25,000 milestone for the first time. The Dow Jones Industrial Average rose 0.6% to finish at 25,075.13. The S&P 500 rose 0.4%. The Nasdaq Composite Index gained 0.2%.

The US ADP National Employment Report on Thursday showed US private employers added 250,000 jobs in December, the biggest monthly increase since March. Meanwhile, initial jobless claims, a tool to measure layoffs, rose 3,000 to 250,000 in the seven days ended 30 December 2017, the Labor Department said Thursday. The number of people already collecting unemployment benefits, known as continuing claims, fell 37,000 to 1.91 million.

Today's Calls:
#Buy Pincon Spirit Ltd at around Rs.37-38, for short term targets of Rs.63-71. It's old name is Sarang Viniyog Ltd which it changed to Pincon Spirit Ltd on May 09, 2012. Most of the liquor stocks were seen rising during the last few months after the honourable Supreme Court of India found ‘no merit’ in a plea seeking a ban on liquor across the country claiming that it caused death, health problems, rise in crime graph and financial loss to the people. It is pertinent to mention here that the Supreme Court of India allowed sale of liquor in hotels and restaurants on the national and state highways within the municipal limits, around 3 - months back. The apex court on December 15, 2016 had imposed a ban on sale of liquor within 500 metre of the state and national highways from April 1. However, on August 23, 2017 it clarified that the ban is not applicable within the municipal limit.

#Those who are still holding the shares of Orchid Pharma Ltd (Rs.22.15), formerly Orchid Chemicals Ltd and Pharmaceuticals Ltd from around Rs.18, when it was first recommended in this blog, can continue to hold with a SL at Rs.19.50.

#I have spoken with the source of MBL Infrastructure Ltd (Rs.29.20) and the feedback I got is positive, as the company is open and the employees are working. We will get a more clearer picture by 15th January, 2018. The government has recently amended the IBA, and now we can look for positive verdict from the NCLT. However, even if a strategic investor takes over it, it will be positive for the shareholders.

~~with inputs from Capital Market - Live News
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