Monday, February 12, 2018

Market Mantra
Key benchmark indices held firm after moving in a tight range in positive terrain in mid-morning trade. At around 12.12 pm, the BSE Sensex was seen trading at 34,217.37 up 211.61 points or 0.62%, while the Nifty was seen at 10,514.40 up 59.45  points or 0.57%. Firmness in Asian stocks supported gains on the bourses.

The market opened higher on firm global cues. Key indices held steady in morning trade after paring initial gains. Stocks held firm in mid-morning trade.

Among secondary indices, the S&P BSE Mid-Cap index rose 1.42%. The S&P BSE Small-Cap index gained 1.69%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was quite strong. There were almost four gainers for every loser. On the BSE, 2,006 shares rose and 542 shares dropped. A total of 110 shares were unchanged.

Cement stocks rebounded. Shree Cement rose 0.06%, Ambuja Cements 0.74%, ACC 0.39% and UltraTech Cement rose 0.61%.

Grasim Industries advanced 1.45%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Telecom stocks also gained in firm market. Bharti Airtel rose 0.72%, Tata Teleservices (Maharashtra) 1.54%, Reliance Communications 1.85% and Idea Cellular gained 1.13%.

Tata Steel rose 3.83% after consolidated net profit surged 389.83% to Rs.1135.92 crore on 20.05% rise in net sales to Rs.33099.95 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours on Friday, 9 February 2018.

Consolidated pre-exceptional profit before tax (PBT) from continuing operations rose 221% to Rs.3210 crore in Q3 December 2017 over Q3 December 2016. However, exceptional charges of Rs.1116 crore arising mainly from certain demands and claims from regulatory authorities relating to mining operations, dented profits.

On the macroeconomic data front, the government will announce inflation data based on consumer price index (CPI) for January 2018 after market hours today, 12 February 2018. Consumer prices rose 5.21% in December 2017 over December 2016.

The government will also announce industrial production data for December 2017 after market hours today, 12 February 2018. India's industrial production rose sharply by 8.4% in November 2017 over November 2016.

Meanwhile, the provisional figures of direct tax collections up to January 2018 showed that net collections are at Rs.6.95 lakh crore which is 19.3% higher than the net collections for the corresponding period of last year. The net direct tax collections represent 69.2% of the revised estimates of direct taxes for FY 2018 (Rs.10.05 lakh crore). Gross collections (before adjusting for refunds) have increased by 13.3% to Rs.8.21 lakh crore during April 2017 to January 2018. Refunds amounting to Rs.1.26 lakh crore have been issued during April 2017 to January 2018.

Overseas, Asian stocks gained after a late-day rally on Wall Street on Friday, 9 February 2018, as investors fretted about the risks from looming US inflation data. Japanese markets are closed today in observance of a public holiday.

Trading in US index futures indicated that the Dow could jump 141 points at the open today, 12 February 2018.

Today's Calls:

#The shares of Housing Development & Infrastructure Ltd (Rs.54) has started to move slowly towards the next targets of Rs.57-59. The company has a huge land bank, apart from its projects in affordable housing sector. I am looking at a price of Rs.92 within the next few months. Stay invested.

#BUY CESC Ltd Futures at around Rs.1038-1039, SL: Rs.1019, for a short term target of  Rs.1064. The medium term investors can keep holding with a SL of Rs.970. 
CESC will handle the electricity distribution business of the Group. According to Sanjiv Goenka, Chairman, CESC has already got the necessary regulatory and shareholder clearances. “The final hearing is due at NCLT in March. All other clearances are in place,” he told reporters during a press conference.

#Those who are holding the shares of Videocon Industries Ltd (Rs.19.20) can look for short term target of Rs.27. The company has oil assets in Africa and elsewhere, which it is thinking to offset against its debt.

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