Winning Strokes: Think Different

Photo: Indian Textile Journal

Key benchmark indices logged modest gains in a steady session of trade, snapping two-day losses, after retail inflation slowed to a nine-month low. The barometer index, the S&P BSE Sensex, rose 207.10 points or 0.55% to settle at 37,852. The Nifty 50 index rose 79.35 points or 0.70% to settle at 11,435.10. After seeing gap-up opening, indices firmed up as the session progressed.

The Indian stock market will remain shut tomorrow, 15 August 2018, on account of Independence Day.

Among secondary barometers, the BSE Mid-Cap index rose 0.89%, outperforming the Sensex. The BSE Small-Cap index rose 0.53%, underperforming the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1317 shares rose and 1367 shares fell. A total of 149 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 2.48%), the S&P BSE Realty index (up 1.84%), the S&P BSE Bankex (up 0.96%) outperformed the Sensex. The S&P BSE Capital Goods index (down 0.51%), the S&P BSE Power index (down 0.14%), the S&P BSE Metal index (up 0.23%), underperformed the Sensex.

Tata Steel rose 1.7%. On a consolidated basis, Tata Steel reported 109.98% rise in profit after tax to Rs 1934 crore on 22.14% rise in turnover to Rs 37833 crore in Q1 June 2018 over Q1 June 2017. The Q1 June 2018 resul was announced after market hours yesterday, 13 August 2018.

Tata Steel India operations' EBITDA jumped by 75.2% to Rs 5118 crore in Q1 June 2018 over Q1 June 2017 on account of better realisations and improved operational efficiencies. EBITDA margin for the quarter was 31.2%.

Tata Steel European operations' EBITDA improved significantly by 42% QoQ to £183 million on account of higher selling price and better operational performance. Tata Steel South-East Asian operations' EBITDA increased by 15.3% QoQ to Rs 110 crore in Q1 June 2018 due to improved realisations and deliveries at NatSteel, partially offset by increase in input metallic cost.

T V Narendran, CEO & Managing Director said that Tata Steel delivered strong performance across all geographies on the back of strong steel demand and buoyant spreads. All verticals saw strong growth, with automotive and branded products segments now contributing to 19% and 33% of total volumes, respectively. Tata Steel Europe also saw stronger profitability with an improvement in spreads and operational performance.

On the macro front, the annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 5.09% (provisional) for the month of July 2018 (over July 2017) as compared to 5.77% (provisional) for the previous month and 1.88% during the corresponding month of the previous year. The Ministry of Commerce & Industry unveiled the data during trading hours today, 14 August 2018.

The all-India general Consumer Price Index (CPI) inflation dipped to nine-month low of 4.17% in July 2018 (new base 2012=100), compared with 4.92% in June 2018. The CPI inflation figure for June 2018 is revised downwards to 4.9% from 5.0% reported earlier. The corresponding provisional inflation rate for rural area was 4.11% and urban area 4.32% in July 2018 as against 4.93% and 4.85% in June 2018. The data was announced after market hours yesterday, 13 August 2018.

Overseas, most European stocks nudged higher on the strength of banking and basic resource sector stocks as investors appeared more sanguine over the nature of their exposure to the Turkish economy. A stronger-than-expected reading of 0.5% for second quarter GDP in Germany, the region's biggest economy, along with an upwardly revised reading of 0.4% for the first three months of the year from the Federal Statistics Office, boosted sentiment.

Asian shares were mixed as tremors from the collapse of the Turkish lira ebbed a little. Business activities in China cooled further in July, with investment slowing to a near two-decade low, official data showed. Fixed-asset investment in China's non-rural areas climbe. d 5.5% in the January-July period from a year earlier, the National Bureau of Statistics said Tuesday.

Retail sales in China climbed 8.8% in July from a year earlier, slowing from a 9.0% on-year increase in June. Retail sales increased 0.67% in July from June. In June, retail sales rose a revised 0.74% from the previous month. Value-added industrial output in China rose 6.0% in July from a year earlier, unchanged from the 6.0% increase in June. Industrial production rose 0.48% in July from June. In June, it rose 0.36% from May.

US stocks settled with small losses Monday, with the S&P 500 and the Dow Jones Industrial Average down for a fourth straight session as the ongoing turmoil in Turkey dampened investors' appetite for riskier assets.

#The share of Kwality Ltd hit another buyer freeze at Rs.21.10, after touching an intraday low of Rs.20.50 in the NSE. The stock has nearly doubled from the recommended price of around Rs.12.5. The traders are suggested to book some profits in the scrip and wait for it to cross the immediate resistances with good volumes. 

#I have recommended a textile stock which is likely to give good returns in the short term, due to some positive developments. The scrip today closed at Rs.4.75. The company is into the process of insolvency resolution, through National Company Law Tribunal. Earlier, the Mumbai bench of the NCLT has allowed the resolution professional (RP) of this listed textile player to exclude the time between the admission of insolvency petition from the date of uploading an order, which means now the 270 days deadline for the resolution expired on 8 July 2018. This will pave the way for lenders to evaluate the bids to acquire the company. It is pertinent to mention here that the company has received the highest bid from one bidder and the second highest bidder has increased its bid, which the committee of creditors (CoC) wants to consider. At the time of admission of the insolvency petition, the company owed Rs.1,062 crore to the consortium of lenders. The interested bidders to acquire the company needs to have minimum net-worth of Rs.150 crore and a consolidated group turnover of Rs.400 crore in textile manufacturing or trading business. The shortlisted candidate also requires demonstrating the ability to invest minimum equity of Rs.100 crore.

#The stock of HDIL today moved to Rs.26.3 before closing at Rs.25.95. I had asked everyone to accumulate/average the scrip at around Rs.18, when it was trading near its all time low. 

#The stock of Den Networks Ltd, today made a low of Rs.53.8 before closing at Rs.58.55, after touching an intraday high of Rs.59.85. To know what to do with the scrip join the Life Time Premium Membership at a very low price at around Rs.2000 per year (the money for the stated period needs to be paid in one shot) for the scrip without F&O. For inclusion of the F&O, which is altogether a different field, the price of the package will be a little bit higher. 

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