Market Pulse

Key benchmark indices hovered in positive zone in early afternoon trade on sustained buying demand in index pivotals. At 13.12 IST, the barometer index, the S&P BSE Sensex was at 35,643.57 up 131.99 points or 0.37%, while the Nifty was seen at 10,918.10 up 23.40 points or 0.21%. Most capital goods stocks rose. Realty stocks saw mixed trend.

Trading for the week began on a positive note led by gains in Reliance Industries and HDFC Bank. A bout of volatility was seen in morning trade as the Sensex and the Nifty trimmed gains after scaling a fresh record highs. Volatility continued in mid-morning trade as stocks regained strength soon after trimming gains from higher levels.

The S&P BSE Mid-Cap index was up 0.03%, underperforming the Sensex. The S&P BSE Small-Cap index was up 0.44%, outperforming the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,458 shares rose and 1,250 shares fell. A total of 144 shares were unchanged.

Most capital goods stocks rose. GE Power India (up 5.39%), Bharat Heavy Electricals (Bhel) (up 0.62%), BEML (up 0.15%), Bharat Electronics (up 0.87%), Punj Lloyd (up 0.03%) and Siemens (up 0.16%) rose. Thermax (down 1.09%) and ABB India (down 0.47%) fell.

L&T fell 0.09% to Rs 1,370.70. L&T launched the second Offshore Patrol Vessel (OPV) of a series of seven OPVs for the Indian Coast Guard at the company's greenfield defence shipyard at Kattupalli, near Chennai on Saturday, 20 January 2018. L&T had received the order valued at Rs 1432 crore for design and construction of seven OPVs from the Ministry of Defence in March 2015. The announcement was made during market hours today, 22 January 2018.

The first OPV was launched in October 2017 and is presently undergoing trials. OPVs are long-range surface ships with helicopter operation capabilities, and their roles include coastal and offshore patrolling, policing maritime zones of India, control & surveillance, anti-smuggling & anti-piracy with limited wartime roles.

Realty stocks saw mixed trend. Sobha (up 5.21%), Godrej Properties (up 4.9%), Indiabulls Real Estate (up 0.62%), Unitech (up 0.55%) and Oberoi Realty (up 0.7%) rose. DLF (down 0.72%), Housing Development and Infrastructure (down 0.16%), D B Realty (down 2.87%) and Prestige Estates Projects (down 1.9%) fell.

GRUH Finance lost 8.19% to Rs 634.75 on profit booking after a recent rally. Shares of GRUH Finance witnessed a run-up ahead of Q3 results. The stock had surged 38.28% in seven trading sessions to settle at Rs 691.35 on Friday, 19 January 2018, from its close of Rs 499.95 on 10 January 2018. GRUH Finance's net profit rose 28.29% to Rs 82.16 crore on 12.45% rise in total income to Rs 428.47 crore in Q3 December 2017 over Q3 December 2016. The result was announced on Saturday, 20 January 2018.

Apollo Micro Systems was trading at Rs 454.10, at a premium of 65.12% over its initial public offer issue price of Rs 275. The stock opened at Rs 478, a premium of 73.82% over issue price. The stock had hit a high of Rs 479.95 and a low of Rs 454.10 so far during the day. The IPO of Apollo Micro Systems was subscribed 248.51 times. The company had fixed the price band of Rs 270-275 per equity share. Apollo Micro Systems is an electronic, electro-mechanical, engineering designs, manufacturing and supplies company.

J Kumar Infraprojects rose 5.9% after the company said it received letter of acceptance (LoA) from Delhi Metro Rail Corporation for line 2A architectural station finishing tenders. The first contract is for architectural finishing works of four stations viz. Don Bosco, Shimpoli, Mahavir Nagar and Kamraj Nagar of Line 2A on Dahisar (East) to DN Nagar corridor of Mumbai Metro Rail Project. The contract is worth Rs 28.10 crore. The second order is for architectural finishing works of four stations viz. Charkop, Malad, Kasturi Park and Bangur Nagar of Line 2A on Dahisar (East) to DN Nagar Corridor of Mumbai Metro Rail Project. The contract is worth Rs 28.86 crore. The announcement was made on Saturday, 20 January 2018.

Overseas, most Asian stocks were trading higher as investors kept an eye on political developments in the US after a government shutdown began last week. US stocks on Friday, 19 January 2018 finished higher, with both the S&P 500 and the Nasdaq ending at records as optimism over corporate earnings outweighed the US government shutdown.

Republican and Democratic leaders of the US Senate failed to secure a deal on Sunday night seeking to break the impasse that has kept the US government shut down for two days.

Today's Call:

#As expected the shares of 3i Infotech Ltd (Rs.7.35) got the support around Rs.7 and is now about to hit the buyer freeze. Considering the fundamentals of the  company, the investors should accumulate the scrip in every dip from now, for short to medium term targets of Rs.50 and long term target of Rs.100-plus.

#Those who are holding the shares of HDIL (Rs.61) and have averaged yesterday around Rs.60, should now look for targets of Rs.66 -72-84-91.

#Those who are holding the shares of Federal Bank Ltd (Rs.102) can continue to add on every declines. The company came out with good set of numbers for the Q3FY18. SL: Rs.97.

~~with inputs from Capital Market - Live News