Market Pulse

Key benchmark indices were trading lower in early trade, tracking negative leads from Asian markets and overnight slide on the Wall Street. At around 10:51, the BSE Sensex was seen at 35,925.06 down 108.67 points or 0.30%, while Nifty was trading at 11,023.05 down 26.60 points or 0.24%.

The Sensex slipped below the psychological 36,000 mark at the onset of trading session after opening above that level.

Among secondary barometers, the BSE Mid-Cap index was down 0.39%, underperforming the Sensex. The BSE Small-Cap index was down 0.11%, outperforming the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 706 shares fell and 575 shares rose. A total of 61 shares were unchanged.

Overseas, Asian shares were trading lower after US stocks sold off for a second day. US stocks declined on Tuesday, as heavy losses in health-care and energy shares weighed on the main indexes. Climbing US bond yields, which imply a rise in borrowing costs, also put pressure on stocks.

US Federal Reserve's Federal Open Market Committee (FOMC) commenced its two-day meeting on monetary policy yesterday, 30 January 2018, with a policy decision due later in the global day today, 31 January 2018. The Fed, in a widely expected move, had raised interest rates by 25 basis points (bps) to a range of 1.25-1.5% in its December monetary policy meeting.

Closer home, Mahindra & Mahindra (M&M) was up 0.53%. The company announced its foray into the sprayers business under the aegis of its Farm Equipment Sector through the acquisition of a 26% equity stake in M.I.T.R.A. Agro Equipments, a Maharashtra-based AgTech company (MITRA). The announcement was made after market hours yesterday, 30 January 2018.

Under the transaction, which is expected to close by February 2018, M&M will acquire a 26% equity stake in MITRA through a fresh infusion of capital into the company. The association with Mahindra will help accelerate the growth of MITRA, which designs and manufactures proprietary sprayers for horticulture crops.

Bajaj Auto was down 0.68%. The company said that pursuant to letter dated 16 January 2018 received by the company from the Workers Union (Vishwa Kalyan Kamgar Sanghatana), an indefinite hunger strike has commenced from 29 January 2018 at Akurdi and Chakan. The main reasons for the indefinite hunger strike as mentioned in the letter are the pending issue of eight workmen dismissed from the services for various acts of misconduct in 2013 -14 and dismissal of six workmen who did not report at the place of transfer/ deputation in spite of court orders, and delay in conclusion of the wage review process which is due with effect from 1 April 2016. The matter is pending before the Industrial Court, Pune and High Court of Bombay. The announcement was made after market hours yesterday, 30 January 2018.

Bharat Electronics was down 4.63%. The company's net profit fell 18.93% to Rs 302.84 crore on 12.92% rise in total income to Rs 2562 crore in Q3 December 2017 over Q3 December 2016. The announcement was made after market hours yesterday, 30 January 2018.

The board of directors of the company approved the proposal to buyback of not exceeding 2.03 crore shares of the company representing 0.83% of the total number of equity shares in the paid-up share capital of the company, at a price of Rs 182.50 per equity share payable in cash for an aggregate consideration not exceeding Rs 372.25 crore, representing 5% of the aggregate of the fully paid-up equity share capital and free reserves as per the audited standalone financial statements of the company for the financial year ended 31 March 2017.

Syndicate Bank was down 0.41%. The bank said that the board meeting will be held on 2 February 2018, for approving the revised capital plan of the ban from earlier Rs 3500 crore (of which Rs 1150.80 crore has been raised through qualified institutional placement) to Rs 3990 crore for the financial year ending 31 March 2018). The equity capital may be raised through QIP/rights issue/follow on public offer and or preferential allotment to LIC, Government of India and other financial institutions in one or more tranches depending on the prevailing market conditions. The announcement was made after market hours yesterday, 30 January 2018.

Indiabulls Housing Finance was down 0.69%. The company said that the bond issue committee of the company approved the issue and allotment of Rs 315 crore, 7.8% payable annually secured synthetic Rupee notes due February 2021. The announcement was made after market hours yesterday, 30 January 2018.

The next major trigger for the market is Union Budget 2018-2019, which will be presented by the finance minister Arun Jaitley in the parliament on Thursday, 1 February 2018.

The Budget Session of the parliament began on 29 January 2018. The first phase of the budget session of the parliament is being held from 29 January 2018 to 9 February 2018. After a recess, Parliament will meet again from 5 March 2018 to 6 April 2018, as per reports.

The Economic Survey 2017-18 was tabled in Parliament on 29 January 2018. The survey estimated that India's economy should grow between 7% and 7.5% in the 2018/19 (April-March) with exports and private investment set to rebound. The survey estimated that gross domestic product will have grown 6.75% in the current fiscal year ending in March 2018.

Today's Calls:

#Buy Eros Media Ltd at Rs.205, T: Rs.237-251, SL: Rs.197. 

#Buy Suzlon Energy above Rs.14.7, T: Rs.17, SL: Rs.14.2. The government could come up with some incentives for the Wind Energy sector.

#Buy Opto Circuits Ltd at around Rs.11, T: Rs.14, SL: Rs.9.6. The government could give some incentives to the medical equipment makers, in the ensuring budget. The stock is also good on the charts after a long time.

#Those who are still holding the shares of Hindustan Zinc Ltd can look for targets of Rs.221-222. Keep a trailing stop of 2%.

#Those who are holding the shares of HDIL inspite of its fall, can start averaging the same at around Rs.58, for targets of Rs.61-62. The government could give some relief to the REAL ESTATE sector, in the upcoming budget. 

#Buy Cadila Healthcare at around Rs.426,  T: Rs.432-435, SL: 421 on T+2 basis. This is a pure chart based call. 

#Those who are holding the shares of Urja Global Ltd (Rs.9.35 in the NSE and Rs.9.99 in the BSE), should look to exit the counter, before it starts hitting the lower circuits. The stock is highly overvalued and the current prices does not justify any valid reasoning.

#Buy Bhusan Steel Ltd at around Rs.52. for a short term target of Rs.66-69. The takeover story by Arcelor Mittal or other steel behemoths is still there.

~~with inputs from Capital Market - Live News

Note: I am not well and have undergone a minor surgery in the left jaw before the RCT. I might need another surgery to fix the problems of the incisors. Pain is there (not excruciating may be because of administration of strong pain killer) in the Left Jaw, but the things are looking a little better now. Hope the ordeal will soon be over and I will be back to my normal self again. My health conditions have taken a severe beating since the last few months. I have recovered from Malaria only a month back and now this issue is another bolt from blue.

Hence, the updates on this blog might get affected, till I fully recover from the cascading effects of multiple negative health problems governing my life cycle and also due to pile of work in my other verticals, which remained unfinished due to the same reason. 

Meanwhile, play light before the budget and use stop  losses in case the market does not recover, even after the budget.