Thursday, March 01, 2018

Market Pulse
A divergent trend was witnessed in afternoon trade as the barometer index, the S&P BSE Sensex was trading with small losses while the Nifty 50 index was trading with minor gains. At 2.30 pm IST, the barometer index, the S&P BSE Sensex, was trading at 34,172.19 down 11.85 points  or 0.03%, while the Nifty was seen at 10,500.15 up 7.30 or 0.07%. Since tomorrow is HOLI and hence the traders are trying to play safe, and the market so, is lifeless, today. However, on Monday, I feel the market will show positive movements, post encouraging GDP numbers. Therefore, use the intra-day dips to accumulate good stocks at reasonable valuations. 

Auto and telecom stocks saw mixed trend. Gains triggered by by better-than-expected domestic economic growth were almost offset by losses due to negative Asian stocks.

Among secondary barometers back home, the BSE Mid-Cap index was up 0.06%. The BSE Small-Cap index was up 0.31%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,368 shares rose and 1,155 shares fell. A total of 147 shares were unchanged.

Auto stocks saw mixed trend. Tata Motors (up 1.2%), Mahindra & Mahindra (M&M) (up 0.73%), Eicher Motors (up 0.93%) and Escorts (up 0.14%) gained. SML Isuzu (down 0.45%), Hero MotoCorp (down 0.63%) and TVS Motor Company (down 0.59%) fell.

Car major Maruti Suzuki India was down 0.06%. The company said that its total sales rose 15% to 1.49 lakh units in February 2018 over February 2017. The announcement was made during market hours today, 1 March 2018. Domestic sales rose 14.2% to Rs 1.37 lakh units in February 2018 over February 2017. Exports jumped 24.9% to 11,924 units in February 2018 over February 2017.

Commercial vehicles maker Ashok Leyland was off 0.07%. The company said that its total sales rose 29% to 18,181 units in February 2018 over February 2017. The announcement was made during market hours today, 1 March 2018.

Motorcycle maker Bajaj Auto was up 0.54% after the company said that its total sales rose 31% to 3.57 lakh units in February 2018 over February 2017. Bajaj Auto's domestic sales rose 35% to 2.14 lakh units in February 2018 over February 2017. Exports surged 26% to 1.43 lakh units. The announcement was made before market hours today, 1 March 2018.

On the macro front, India's Gross Domestic Product (GDP) growth further accelerated to 7.2% in Q3 December 2017, showing improvement from 6.5% growth in the preceding last quarter and 6.8% in the corresponding quarter last year. The GDP growth stood at 6.4% in April-December 2017, compared with 7.5% recorded in the corresponding period last year. The GDP growth estimate for 2017-18 has been revised upwards to 6.6% at second advances estimates level from 6.5% at first advance estimate level released in early January 2018.

Meanwhile, the output of eight core infrastructure sector comprising 40.27% of the weight of items included in the Index of Industrial Production (IIP), improved to 6.7% in January 2018 over January 2017.

Overseas, most Asian stocks declined, tracking overnight slide in US equities. Growth in China's manufacturing sector unexpectedly picked up to a six-month high in February. The Caixin/Markit Manufacturing Purchasing Manager's Index (PMI) edged up to 51.6 last month, from 51.5 in January. The 50-mark divides expansion from contraction on a monthly basis.

US stocks ended lower on Wednesday, as Wall Street digested data that were seen as underlining the economy's robust health. Strong economy could warrant the Federal Reserve to turn more hawkish;but is if and only if the inflation starts to surge.

In the latest economic data, the pace of growth in the US economy was trimmed to 2.5% from 2.6% in the fourth quarter, largely because of a slower buildup in inventories of unsold goods.

Separately, the Chicago PMI came in at 61.9 in February. Pending-home sales fell 4.7% in January, the lowest reading since October 2014, and the biggest monthly decline since 2010.

Today's Calls:
#Buy the shares of 63 Moons Technologies Ltd (Erstwhile Financial Tech) at around Rs.94-95, for short term targets of Rs.117-121. SL: Rs.88.

#Those who are holding the shares of Tata Motors Ltd (Rs.372.70) can look for targets of Rs.382-384, if it is able to clear the resistance zone of Rs.376.70-377. 
In Q3FY18, though it came out with disappointing set of Jaguar Land Rover earnings, it's standalone performance was strong. Analysts retained their ratings but slashed earnings estimates. The domestic number are likely to remain buoyant as the Indian economy has started to gather steam. It is to be noted that 85% of Tata Motors' revenues comes from its Jaguar Land Rover (JLR) unit. Tata Motors' passenger and commercial vehicle business performance was strong for the December '18 quarter, as standalone profit stood at Rs.183.7 crore in Q3 against loss of Rs.1,045.9 crore in same period last year.

#A strong US, Chinese and Indian economy will definitely give legs to the Crude Oil Prices in the international markets and I believe $65 per barrel level which has been acting as a resistance since some time on the upside will be broken very soon. Hence keep accumulating the shares of upstream oil companies like Aban Offshore Ltd (Rs.169.30) on every decline, with suitable stop losses.

#Those who are holding the shares of TV Vision Ltd (Rs.17), should further average only above Rs.19 or  if the stock give a closing above Rs.19 on a closing basis. The fundamentals of the company are expected to improve going forward. At present the company which is operating 5 (five) TV channels is doing pretty well. 

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