Friday, January 12, 2018

Photo: Aaj Ki Job
The stock market closed the volatile trading session with small gains on positive global cues. The barometer index, the S&P BSE Sensex advanced 88.90 points or 0.26% to settle at 34,592.39. The Nifty 50 index rose 30.05 points or 0.28% to settle at 10,681.25. Both the Sensex, and the Nifty, hit record high on intraday as well as on closing basis.

The Sensex and Nifty had hit record highs in early trade on the back of positive trading sentiment in Asian stocks fueled by strong lead from Wall Street. Also, expectations of recovery in domestic earnings in Q3 FY18 aided sentiment. Indices hovered with modest gains till mid-morning trade. Suddenly selling pressure emerged in afternoon trade after Supreme Court judges said that the working of Supreme Court was not in order. Indices bounced back to positive terrain to close the session with small gains.

Justice J Chelameswar, the second senior most judge in the Supreme Court, today, 12 January 2018, said the administration of the apex court is “sometimes not in order” and many “less than desirable things” have taken place. In an unprecedented move, Justice Chelameswar and three other senior judges today held a press conference on various issues relating to the apex court judiciary. Besides Justice Chelameswar, the other judges were Justices Ranjan Gogoi, M B Lokur and Kurian Joseph. Unless this institution is preserved, democracy will not survive in this country, Justice Chelameswar reportedly said.

The Sensex advanced 88.90 points or 0.26% to settle at 34,592.39, its record closing high. The index advanced 134.93 points, or 0.39%, at the day's high of 34,638.42. The index lost 161.33 points, or 0.46%, at the day's low of 34,342.16.

The Nifty rose 30.05 points or 0.28% to settle at 10,681.25, its record closing high. The index advanced 39.20 points, or 0.36%, at the day's high of 10,690.40. The index lost 54.10 points, or 0.5%, at the day's low of 10,597.10.

Among the secondary indices, the S&P BSE Mid-Cap index declined 0.17%. The S&P BSE Small-Cap index rose 0.05%. Both these indices underperformed the Sensex.

The breadth, indicating the overall health of the market, was negative. On the BSE, 1,561 shares declined and 1,354 shares advanced. A total of 155 shares were unchanged.

The total turnover on BSE amounted to Rs 5387.75 crore, higher than turnover of Rs 5253.96 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Bankex index (up 0.5%), the BSE Capital Goods index (up 0.48%) and the BSE Metal index (up 0.45%) outperformed the Sensex. The BSE FMCG index (down 0.52%), the BSE Healthcare index (down 0.34%) and the BSE Realty index (down 1.46%) underperformed the Sensex.

Bank stocks were mixed. Among public sector banks, Indian Bank (up 1.16%), Punjab National Bank (up 0.9%) and Central Bank of India (up 0.27%) edged higher. IDBI Bank (down 1.21%), Bank of Baroda (down 0.18%) and Bank of India (down 1.72%) edged lower.

State Bank of India (SBI) dropped 0.07% at Rs 301.80. The bank said that the proposal will be submitted to executive committee of central board (ECCB) on 17 January 2018, for approval for issuance of long term bonds of Rs 20000 crore for financing of infrastructure and affordable housing in domestic and overseas market instead of Rs 5000 crore as intimated earlier. The announcement was made after market hours yesterday, 11 January 2018.

Among private sector banks, ICICI Bank (up 2.63%) and IndusInd Bank (up 0.41%) edged higher. Yes Bank (down 0.57%), Axis Bank (down 0.45%), Kotak Mahindra Bank (down 0.02%) and HDFC Bank (down 0.01%) edged lower.

Realty stocks slumped. D B Realty (down 4.81%), Oberoi Realty (down 3.11%), Prestige Estates Projects (down 1.79%), Sobha (down 1.98%), Unitech (down 1.53%), HDIL (down 1.24%), DLF (down 1.4%) and Godrej Properties (down 1.36%) declined.

Indiabulls Real Estate was down 0.57%. The company through its wholly-owned subsidiary, Yashita Buildcon, has on 11 January 2018, entered into a binding and definitive agreement to acquire a prime and newly constructed commercial building, having leasable area of about 2.5 lakh sq ft in Gurugram. The deal is expected to get completed in 3 to 4 months when the Occupation Certificate of the building is expected to be received, the company said. The announcement was made after market hours yesterday, 11 January 2018.

TCS dropped 0.56% at Rs 2,772.90. The company's consolidated net profit rose 1.31% to Rs 6545 crore on 1.18% growth in net sales to Rs 30904 crore in Q3 December 2017 over Q2 September 2017. The result was announced after market hours yesterday, 11 January 2018.

Separately, TCS today, 12 January 2018, announced that it has entered into an agreement with Transamerica, a leading provider of life insurance, retirement and investment solutions, to enable the transformation of administration of its US insurance and annuity business lines. The multi-year agreement is worth more than $2 billion in revenues, and is expected to be completed by the second quarter of 2018, the company said. The announcement was made before market hours today, 12 January 2018.

Separately, TCS said it has been selected by Modell's Sporting Goods, one of America's oldest retailers of sporting goods, to deploy TCS OmniStore Unified Store Commerce Suite to transform their stores and deliver a true omni-channel experience for customers. The announcement was made during market hours today, 12 January 2018.

Infosys advanced 0.26% at Rs 1,078.40. The company's consolidated net profit rose 37.65% to Rs 5129 crore on 1.65% growth in total income to Rs 18756 crore in Q3 December 2017 over Q2 September 2017. The result was announced after market hours today, 12 January 2018. The result is as per Indian Accounting Standards (Ind-AS).

Shree Cement lost 3.36% at Rs 18,856.50, with the stock declining on profit booking after declaring good Q3 result. The result was announced after market hours yesterday, 11 January 2018.

Shares of Shree Cement had witnessed a pre-result rally in anticipation of good Q3 result. The stock had gained 8.04% in five trading sessions to settle at Rs 19,511.95 yesterday, 11 January 2018, from its close of Rs 18,059.15 on 4 January 2018.

Shree Cement's net profit rose 41.6% to Rs 333.33 crore on 23.1% growth in net sales to Rs 2296.23 crore in Q3 December 2017 over Q3 December 2016.

Overseas, European stocks edged higher amid earnings. Most Asian stocks closed higher after strong lead from Wall Street. China reported trade data for December with exports up 10.9% and imports rising 4.5%, resulting in a trade surplus at $54.69 billion. China reported a 7.9% jump in exports and 15.9% rise in imports — both in dollar terms — for 2017, the country's General Administration of Customs said today, 12 January 2018. China's overall trade surplus for 2017 was $422.5 billion.

US stocks surged to close the session at record highs yesterday, 11 January 2018 as investors bet economic growth would pick up steam.

#Today the share of Sri Adhikari Brothers Television Network Ltd hit another buyer freeze at Rs.34.25 in the NSE, as it cleared the resistance zone of Rs.31-32. We can look forward for the next targets of Rs.37-41 in the coming days.

#3i Infotech Ltd (Rs.9) today came out with excellent set of Q3FY18 numbers, even when the Indian economy was not doing well. Though the sales were marginally down by 4.23% to Rs.237.52 crore (Rs.248.00 crore during the previous quarter ended December 2016), the Net Profit of 3i Infotech Ltd rose 19.78% to Rs.22.77 crore in the quarter ended December 2017 as against Rs.19.01 crore during the previous quarter ended December 2016. There were media reports last month that the company has pre-paid Rs.19.50 crore of its principal outstanding debt. This amount represents 3 monthly installments of the principal amount which were due for repayment on October 31, November 30 and December 31, 2018 as per the terms of the Debt Realignment Scheme (DRS) approved by its lenders. With this pre-payment, the company has now prepaid 9 months of principal debt to its lenders, the company said. The company continues to service its lenders on a regular basis from the effective date of implementation of DRS i.e. April 1, 2016.
Meanwhile, Orion ERP from 3i Infotech continues its growth momentum and delivers industry-beating performance. The company recently posted an impressive 28% growth result in Q2, FY18 of license revenues from the ERP vertical, over the same quarter in FY17.
The stock of 3i Infotech Ltd, has given a multi-year break out today on the upside; we can therefore look forward for targets of Rs.39-62-79-97-126 in the coming. Accumulate the scrip on every decline, as the scrip will very soon cross Rs.40. When a scrip makes multi-year highs, then it generally gives huge returns to the investors.

#TV Vision Ltd today hit another consecutive buyer freeze today as it closed at Rs.26.35. The stock has been making continuous upper freezes since it was recommended at around Rs.21.

#According to my sources in Kolkata and Delhi, the verdict of NCLT for debt affected MBL Infrastructure Ltd (Rs.28.75) has been postponed to 16th January, 2018; like what we have seen in case of Videocon Industries Ltd (Rs.25.20). This is a little positive for the company as it will get more time to gather its resources. Moreover, if we take the case of Videocon Industries Ltd, as an example, the stock could start hitting the upper circuits from next Monday. I mean a settlement with the lenders is on the  cards, after the NDA government recently made amendments to the IBC. However, I don't understand one thing: why the stock is still lying in the T--group? Will the regulators please look into the matter?

#The stock of Videocon Industries Ltd as expected hit the upper circuits in the late trade today, at Rs.25.20 in the NSE. The company according to a report, last year had Rs.22,000-crore oil assets, apart from its consumer electronics business. The value of these assets are set to rise as the crude oil is spiking up in the international market. The company's CMD,  Mr. Venugopal Dhoot said the company has applied to banks to elongate the tenure of the domestic debt by few years so that it can set its house in order. Accumulate the stock on every decline, as  it is set to cross Rs.100, in the coming days.

#The scrip of Reliance Infrastructure Ltd (Rs.555.40) after correction is looking good for investment once again for targets of Rs.611-615. Unless there is crash in the market next week for the recent disturbing events concerning few apex court judges, the stock is likely to get supports at Rs.552-553 ranges. You can buy with a SL at Rs.547. Today, I have taken few shares of the company, for  some of my clients.

#The share of Uttam Galva Steel Ltd recommended in this blog last month at around Rs.22-23, has given good returns in the short time. Today, the scrip touched a high of Rs.30.45 intraday and closed at Rs.28.80. The investors should do well to book at least 50% of the profits and hold the rest with a SL at Rs.27.

#The subscription chage of my Premium Service (information) is set to increase to Rs.18,000 per year from 16th January, 2018. However, those who will enroll their names before the cut off-date will be given an extension of 15 days to pay the amount. Moreover, if you have a portfolio size of more than Rs.2.5 lakhs (Rs.1.5 - 2 lakhs quota/slot is full), you can come to me - we will make money jointly on PROFIT SHARING BASIS. Moreover, since, I have a limited capacity, preference will be given to higher portfolio sizes. Also, if you join my associated brokerage house: BMA Wealth Creators Ltd, with a minimum portfolio size of Rs.2.5 lakhs  ((Rs.1.5 - 2 lakhs quota/slot is full), you will get Premium Service FREE of charge, till  you continue with me.

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

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