Winning Strokes: Think Different

Key equity benchmarks extended gains for sixth session in a row led by gains in ICICI Bank, Larsen & Toubro and Reliance Industries. Trading was volatile as indices bounced back in last hour of trade after hovering in negative terrain for most part of the session. The Nifty managed to close above 10,900 mark. Slide in crude oil prices and firmness in rupee boosted investors sentiment.

Global stocks were negative in the face of slowing economic growth and rising political uncertainty while investors looked to the US Federal Reserve monetary policy decision due on Wednesday.

The Sensex rose 77.01 points or 0.21% to settle at 36,347.08, its highest closing level since 1 October 2018. The index rose 105.31 points, or 0.29% at the day's high of 36,375.38. The index fell 223.55 points, or 0.62% at the day's low of 36,046.52.

The Nifty 50 index rose 20.35 points or 0.19% to settle at 10,908.70, its highest closing level since 1 October 2018. The index rose 27.05 points, or 0.25% at the day's high of 10,915.40. The index fell 69.25 points, or 0.64% at the day's low of 10,819.10.

The S&P BSE Mid-Cap index rose 0.21%. The S&P BSE Small-Cap index rose 0.45%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1441 shares rose and 1119 shares fell. A total of 163 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Power index (up 1.09%), the S&P BSE Capital Goods index (up 1.08%) and the S&P BSE Telecom index (up 0.97%), outperformed the Sensex. The S&P BSE Teck index (down 1.13%), the S&P BSE IT index (down 1.08%) and the S&P BSE FMCG index (down 0.29%), underperformed the Sensex.

IT shares declined amid firm rupee. Infosys (down 2.48%) and Wipro (down 1.29%), edged lower. Appreciation in rupee dents top line of IT firms as these companies derive most of their revenues in dollar terms.

Shares of the IL&FS group companies spurted after IL&FS initiated steps for monetisation of its domestic roads vertical. IL&FS Transportation Network hit an upper circuit limit of 5% at Rs 11.55. IL&FS Engineering and Construction Company hit an upper circuit limit of 5% at Rs 14.13. IL&FS Investment Managers hit an upper circuit limit of 10% at Rs 7.02.

On the political front, Kamal Nath, chief minister of Madhya Pradesh, on Monday reportedly waived the outstanding short term crop loans of farmers up to Rs 2 lakh as on 31 March 2018, taken from nationalised and the cooperative banks. The decision will benefit as many as 3.4 million farmers and will cost the exchequer between Rs 35,000 to Rs 38,000 crore, according to media reports.

Further, Chhattisgarh chief minister Bhupesh Bhagel, who too took charge on Monday, reportedly announced that his government will waive farm loans worth Rs 6,100 crore of around 1.66 million farmers. He also announced that the government will increase the minimum support price for paddy from Rs 1,700 per quintal to Rs 2,500 a quintal, reports added.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 70.83, compared with its close of 71.56 during the previous trading session.

In the global commodities markets, Brent for February 2018 settlement was down $1.67 at $57.94 a barrel. The contract had fallen 67 cents, or 1.11% to settle at $59.61 a barrel during the previous trading session.

Overseas, European shares traded lower on Tuesday with investors growing increasingly concerned over the political impasse over Brexit in the United Kingdom, where parliament continues to debate procedural issues surrounding Prime Minister Theresa May's EU exit deal and isn't likely to formally vote on it until early next year.

Asian stocks declined on Tuesday, tracking losses on Wall Street as traders braced for an interest rate hike by Federal Reserve. US equity indexes slid to their lowest close in 14 months on Monday as investors weighed the impact of the Fed on growth in a market already anxious over trade, geopolitical tensions and a possible government shutdown.

The Federal Reserve holds its final policy meeting of 2018 on Tuesday and Wednesday. The Federal Open Market Committee is expected to raise its short-term interest rate by a modest quarter-point to a range of 2.25% to 2.5%. Investors are closely watching the Federal Reserve monetary policy guidance for 2019. The central bank forecasts three more rate hikes in 2019, but softer global growth could cause a shift in its hawkish stance. The Bank of Japan's monetary policy decision is due Thursday, followed by a briefing from Governor Haruhiko Kuroda. A Bank of England decision is also due on Thursday.

#My recommended Omkar Speciality Chemicals Ltd and Lasa Supergenerics Ltd hit their respective buyer freezes at Rs.23.55 and Rs.24.80 respectively. The stocks which were repeatedly recommended on this blog are a part of Dolly Khanna bouquet of scrips. For targets and other details, you need to join the Premium Information Service. 

#The scrip of Balasore Alloys Ltd today made a high of Rs.27.40 before closing at Rs.26.75. This company belongs to the brother of steel baron L N Mittal. Meanwhile, NMDC has announced a revision in the price of Iron ore.

#Those who are holding the shares of Bhusan Steel Ltd from around Rs.23-27, should book some profits at around the CMP of Rs.40.70 and hold the remaining with a strict stop loss at Rs.39. The stock has given a good return to the blog readers.