Market Pulse

16-Mar-18: Fresh selling in index pivotals pulled the key benchmark indices to intraday low in early afternoon trade.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 276.96 points or 0.82% at 33,408.58. The Nifty 50 index was down 87.50 points or 0.84% at 10,272.65. Index heavyweights Reliance Industries (RIL), HDFC and ITC dropped. Metal and mining stocks declined.

Trading for the day began on a dull note as the key benchmark indices edged lower in early trade on negative Asian stocks. Stocks extended fall in morning trade. Key benchmark indices hovered near day's low in mid-morning trade.

The S&P BSE Mid-Cap index was down 0.27%. The S&P BSE Small-Cap index was down 0.13%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade. On the BSE, 1,398 shares declined and 1,053 shares rose. A total of 142 shares were unchanged. Breadth was strong in early trade.

Tata Motors (down 2.56%), ONGC (down 2.18%) and Reliance Industries (down 1.49%) edged lower from the Sensex pack.

L&T fell 0.39%. The Railways Strategic Business Unit of L&T Construction's Transportation Infrastructure Business has signed a contract worth Rs 2864 crore with the Dedicated Freight Corridor Corporation of India (DFCCIL). The scope of work includes construction of single railway track including yards, 75 major & 588 minor bridges, 1 rail over bridge modification, 4 rail flyovers, 21 stations along with construction of all associated works. The announcement was made during market hours today, 16 March 2018.

Drug major Dr Reddy's Laboratories (DRL) fell 0.06%. DRL during market hours today, 16 March 2018 said that the company has launched levocetirizine dihydrochloride tablets USP, 5 mg, an over-the-counter therapeutic equivalent generic version of Xyzal allergy 24HR tablets, in the US market as approved by the US Food and Drug Administration (USFDA).

Levocetirizine dihydrochloride tablets are used for 24-hour relief of allergy symptoms such as watery eyes, runny nose, itching eyes/nose and sneezing. According to IRI sales data, Xyzal allergy tablets had sales of about $71 million in the US market for the 12-month period ended January 2018.

Metal and mining stocks declined. Vedanta (down 1.01%), JSW Steel (down 1.34%), Tata Steel (down 2.33%), Steel Authority of India (Sail) (down 1.86%), National Aluminium Company (down 1.52%), Hindustan Zinc (down 0.69%), Jindal Steel & Power (down 1.8%), Hindalco Industries (down 0.69%), NMDC (down 0.2%) and Hindustan Copper (down 2.02%) edged lower.

Copper edged higher in the global commodities market. High Grade Copper for May 2018 delivery was currently up 0.42% at $3.1405 per pound on the COMEX.

Neuland Laboratories rose 4.34% to Rs 732.50 after a domestic brokerage initiated coverage on the stock with a 'buy' rating and target price of Rs 1,065. The brokerage said in a report that Neuland Laboratories is likely to report a strong recovery in the next fiscal. It expects 19% compounded growth rate in revenue and 800 basis point margin expansion and seven times earnings over the fiscal 2018-2020, it added.

Indian Hotels Company was down 1.05% to Rs 131.60 after the company's promoters exchanged shares via bulk deals yesterday, 15 March 2018. Indian Hotels Company (IHCL) witnessed promoter holding rejig through open market transactions on 15 March 2018 on the BSE at an average price of Rs 130.40 per share. Sir Ratan Tata Trust sold 1.10 crore shares. Sir Dorabji Tata Trust offloaded 5.02 crore shares. Lady Tata Memorial Trust disposed of 1.77 crore shares. Tata Sons purchased 7.89 crore shares. Sir Ratan Tata Trust held 0.93%, Sir Dorabji Tata Trust 4.22%, Lady Tata Memorial Trust 1.49% and Tata Sons controlled 29.79% stake end December 2017.

Meanwhile, India's trade deficit for February 2018 was estimated at $11,979.21 million, 25.8% higher than the $9,521.73-million deficit reported during February 2017, government data released after market hours yesterday, 15 March 2018 showed. Exports during February 2018 stood at $25,834.36 million compared to $24,726.71 million during February 2017. Imports during February 2018 were pegged at $37,813.57 million, compared to $34,248.44 million in February 2017.

On the political front, Andhra Pradesh's Telugu Desam Party (TDP) reportedly pulled out of its alliance with the BJP-led NDA at the Centre. The N Chandrababu Naidu-led TDP, as well as other local parties, expressed their discontent over Narendra Modi led Union govt not giving special status to Andhra Pradesh.

Overseas, most Asian stocks fell as weak volumes in the US session overnight gave little impetus for traders ahead of next week's Federal Reserve meeting. US stocks ended mixed yesterday, 15 March 2018 as industrial and tech gains were offset by losses in the consumer and energy sector.

Today's Calls:

#The stock of 63 Moons Technologies Ltd recommended around Rs.85 and Rs.94, today made an intraday high of Rs.114.5. Book some profits and wait for dips to enter. Keep a SL at Rs.103.

#Central Bank Ltd which was recommended around Rs.67 and Rs.75, has hit Rs.87, intraday. You can book some profits and hold the rest with a SL at Rs.82.

#PAIR TRADE: Buy BANK_NIFTY FUTURES at around 24770 and Simultaneously SELL NIFTY FUTURE at around 10331; ENTRY SPREAD: 2.3955; SL SPREAD: 2.38; Target SPREAD: 2.4012; Duration: 1-2 days.

#Yesterday a Buy was given to the Premium Members in the counter of Lanco Infratech Ltd at around Rs.1.15 for short term targets of Rs.1.45 and Rs.1.82. The stock hit the upper circuits today and is now trading at this level. The company is expected to turnaround in FY19. The scrip of Lanco Infratech Ltd is likely to hit the Buyer Freeze today. 

#Intraday SELL IOC Ltd at around Rs.189, SL: Rs.191.25, T: Rs.185.5-183. Book FULL PROFIT at around Rs.184.80.

#Intraday short GOLD at around Rs.30245, SL above Rs. 30310, T: Rs.30140. A lower CPI does not augur well  for Gold Bulls.

#The stock of MCX Ltd recommended at around Rs.780, made a high of Rs.831.95, intraday. Those who have still not booked profit, kindly do the same and wait for dips to re-enter.

#The stock of RattanIndia Power Ltd (erstwhile Indiabulls Power) today made an intraday high of Rs.6.10. Those who are holding the same can accumulate on market dips, keeping a SL at Rs.5.60.

#Today, I will be recommending another small cap company from the Real Estate space to the Premium Group members. If you can online transfer the subscription amount, then I will instantly give you the name of the scrip; which I feel will cover up the subscription cost. 

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

Market Pulse

Key benchmark indices hovered in positive zone in early afternoon trade. 

At 13:35 IST, the barometer index, the S&P BSE Sensex, was  seen trading at 33,999.86 up 81.92 points or 0.24% while the NSE was seen at 10,455.15 up 33.75 or 0.32%.

The Sensex was trading below the 34,000 level after hitting an intraday high above that level in morning trade. Domestic macroeconomic data released after market hours yesterday, 12 March 2018, signalling an economic turnaround boosted the sentiment.

IT stocks declined as the rupee firmed against the dollar. Metal and mining stocks rose. Aviation stocks rose.

Volatility struck bourses in early trade as the key benchmark indices turned positive soon after an initial decline triggered by subdued Asian stocks. Stocks extended gains and hit fresh intraday high in morning trade. Key benchmark indices trimmed some gains in mid-morning trade.

The S&P BSE Mid-Cap index was up 1.02%. The S&P BSE Small-Cap index was up 1.22%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,678 shares rose and 754 shares fell. A total of 124 shares were unchanged.

IT stocks declined as the rupee firmed against the dollar. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports. In the foreign exchange market, the partially convertible rupee was hovering at 64.9625, compared with closing of 65.04 during the previous trading session.

MindTree (down 1.11%), HCL Technologies (down 0.87%), Oracle Financial Services Software (down 0.05%), Tech Mahindra (down 0.31%) and Hexaware Technologies (down 0.29%) fell.

TCS lost 4.75% to Rs 2,907 on reports that that Tata Sons has sold about 2.84 crore shares or 1.5% stake of the company through six block deals in a price range of Rs 2,872 to Rs 2,925 per share on the NSE. Tata Sons held 73.52% stake in TCS (as on 31 December 2017. The money raised from the stake sale will be used by Tata Sons to strengthen its balance sheet, reports added.

Infosys shed 0.07%. Infosys announced its intention to voluntarily delist its American Depository Shares (ADS) from the Euronext Paris and Euronext London exchanges. Infosys ADS will continue to be listed on the NYSE and investors can continue to trade their ADS on the NYSE as before. The announcement was made after market hours yesterday, 12 March 2018.

The primary reason for seeking the proposed delisting is the low average daily trading volume of Infosys ADS on these exchanges, which is not commensurate with the related administrative requirements. During the 5-year period of the company's listing on Euronext Paris and Euronext London, the average daily trading volume of the company's ADS was significantly lower than its average daily trading volume on the New York Stock Exchange (NYSE). The proposed delisting is subject to approval from Euronext Paris S.A. and Euronext London. There will be no change to the Infosys share/ADS count, capital structure and float, as a result of the proposed delisting from the above exchanges.

Metal and mining stocks rose. Hindustan Copper (up 2.39%), JSW Steel (up 0.96%), Tata Steel (up 0.69%), Steel Authority of India (Sail) (up 1.52%), National Aluminium Company (up 0.55%), Hindustan Zinc (up 0.5%), Jindal Steel & Power (up 0.96%) and NMDC (up 0.69%) edged higher. Hindalco Industries (down 0.2%) fell.

Vedanta rose 1.72% to Rs 322.40 after the company's board of directors at its meeting held today, 13 March 2018, declared an interim dividend of Rs 21.20 per share for the financial year ending 31 March 2018. The announcement was made during market hours today, 13 March 2018.

Aviation stocks rose. SpiceJet (up 1.26%) and Jet Airways (India) (up 2.18%) rose.

InterGlobe Aviation rose 0.13%. According to media reports, the Director General of Civil Aviation (DGCA) on Monday, 12 March 2018, grounded a few Airbus A320neo aircraft currently operating in the country due to the ongoing Pratt & Whitney engine issue. DGCA asked IndiGo to ground eight of its A320neo aircraft until further notice.

The civil aviation authority has reportedly said that no concrete proposal has been given by Pratt & Whitney yet on when the engine woes will be resolved. All the grounded A320neo aircraft are fitted with Pratt & Whitney engines, reports added.

InterGlobe Aviation has yet to reply to a stock exchange notice issued late on Monday, 12 March 2018, seeking clarification on the media reports.

Future Consumer jumped 14.26% to Rs 57.70 after a domestic brokerage initiated coverage on the stock with a 'Buy' rating and price target of Rs 76. The brokerage stated in its report that Future Consumer (FCL), an integrated consumer company, is the best play on the huge window of opportunity (presented by a combination of macro factors and company-led initiatives) for brands using modern retail methods of distribution.

In addition, FCL appears best placed among Future Group companies from a revenue, profit and RoCE perspective, given the group's focus on retail expansion to drive growth in its burgeoning brands portfolio. Improving mix and operating leverage are expected to drive significant margin expansion over the next five years, the report added.

Domestic macroeconomic data released after market hours yesterday, 12 March 2018, signalled an economic turnaround. The lower-than-expected CPI inflation and higher-than-expected IIP data will allay fears of an interest rate hike by the Reserve Bank of India.

India's industrial production (IIP) continued to record a strong growth for the third straight month at 7.5% in January 2018 from 7.1% growth in December 2017. The manufacturing sector's production surged 8.7% in January 2018, supporting overall growth in industrial production. The mining output growth slowed down to 0.1% in January 2018, while the electricity generation growth accelerated to five-month high of 7.6% in January 2018, contributing to the improvement in overall industrial production growth in January 2018.

The all-India general consumer price index (CPI) inflation dipped to four-month low of 4.44% in February 2018, compared with 5.07% in January 2018 and at 3.65% in February 2017. The corresponding provisional inflation rate for rural area was 4.37% and urban area 4.52% in February 2018 as against 5.21% and 4.93% in January 2018. However, the core CPI inflation rose marginally to 5.04% in February 2018 compared with 5% in January 2018.

Overseas, most Asian stocks were trading lower ahead of US reading on inflation due today, 13 March 2018, which is likely to give some idea about whether the Federal Reserve will accelerate its pace of rate increases.

In US, the Dow Jones Industrial Average and the S&P 500 index finished lower Monday, 12 March 2018 weighed down by the industrials sector, while the Nasdaq Composite Index closed at a record, in part due to optimism over Friday's jobs data, which showed solid economic growth without triggering wage pressure.

Today's Calls:

#TV Vision Ltd hits the buyer freeze at around Rs.16.80. We can look for targets of Rs.27-29 if Rs.19 is taken out on the upside. Accumulate on dips. 

#The stock of Union Bank of India Ltd is probably heading towards Rs.111-117. You can raise the stop loss to Rs.96 and keep holding. 

#Should you enter into the SCAM TAINTED counter of KSK Energy Ventures Ltd (Rs.9.90)? You need to join the Premium Service to get the answer. 

#Videocon Industries Ltd hit another buyer freeze at Rs.14.70. This stock is going to deliver multi-bagger return going forward, Therefore, don't sell out in a hurry -- however, book profits on the way up.

# The Stock of HDIL recommended to the Premium Members in the morning,  at around Rs.41.60 for short term targets of Rs.44-47,  has hit an intraday high of Rs.46.70, which is almost near the 2nd target of Rs.47. Book some profits and wait for intraday lows to enter.

#Buy the shares of RattanIndia Power Ltd (erstwhile Indiabulls Power Limited) at around Rs.5.7 for a short term target of Rs.9.

#Buy the shares of Apollo Tyres Ltd at around Rs.264, SL: Rs.260, T: Rs.269-272 on T+2 basis. This a pure chart based call.

#SELL Copper at around Rs.451.00 (CMP: Rs.450.95), Stop Loss above Rs.454.10, T: Rs.445.00 on T+1) basis....

#The stock of P C Jewelers Ltd (Rs.379.80) recommended several times in this blog is on fire today, up more than 10%.  

#Join the Premium  Service or trade through my recommended brokerage house with a minimum portfolio size of Rs.3 lakhs to stay ahead of other. This blog only gives an outline of what is sent to Premium Members and hence if you want a complete guidance, then you need to look for Paid Subscription based Service. 

Market Pulse

Key benchmark indices hovered in positive zone in morning trade after an initial upmove triggered by positive Asian stocks. At 11:50 IST, the barometer index, the S&P BSE Sensex, was seen at 34,061.22 up 241.72 points while the Nifty was trading at 10,466.80 up 84.1 Metal and mining stocks gained across the board. Telecom stocks rose.

Domestic stocks edged higher in early trade tracking positive Asian stocks.

The S&P BSE Mid-Cap index was up 0.95%. The S&P BSE Small-Cap index was up 0.96%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,548 shares rose and 565 shares fell. A total of 84 shares were unchanged.

Overseas, Asian stocks were trading higher as investors continue to debate the outlook for central bank policy normalization and the impact of higher bond yields. Meanwhile, Japan's core consumer price index rose for a 13th straight month in January, increasing by 0.9% from a year earlier, matching December's rate of growth, data from the Ministry of Internal Affairs and Communications showed today, 23 February 2018.

In US, the Dow and the S&P 500 closed higher while the Nasdaq slipped yesterday, 22 February 2018 as investors grappled with the threat from higher interest rates. On the data front, initial US jobless claims fell by 7,000 to 222,000 in the seven days ended 17 February 2018, marking the second lowest level since the end of the 2007-2009 recession.

Back home, Sun Pharmaceutical Industries (up 4.16%), Yes Bank (up 2.39%) and ICICI Bank (up 1.16%) edged higher from the Sensex pack.

Metal and mining stocks gained across the board. Vedanta (up 2.03%), JSW Steel (up 2.42%), Tata Steel (up 3.35%), Steel Authority of India (Sail) (up 3.01%), National Aluminium Company (up 2.15%), Hindustan Zinc (up 2.1%), Jindal Steel & Power (up 3.98%), Hindalco Industries (up 1.77%), NMDC (up 1.46%), Hindustan Copper (up 1.84%) edged higher.

Telecom stocks rose. Bharti Airtel (up 1.81%), Idea Cellular (up 0.55%), Tata Teleservices (Maharashtra) (up 1.15%) and Reliance Communications (up 0.91%) rose. MTNL (down 1.86%) fell.

Shares of Bharti Infratel fell 0.57%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

KSB Pumps gained 1.89% after net profit rose 21.1% to Rs 27.35 crore on 30.9% growth in net sales to Rs 328.19 crore in Q4 December 2017 over Q4 December 2016. KSB Pumps' board recommended dividend of Rs 6 per share for the year ended 31 December 2017. The results were announced after market hours yesterday, 22 February 2018.

Today's Calls:

#How many of you bought the shares of Reliance Infrastructure Ltd today morning at around Rs.444 reading my blog inputs.. Book some profit at around Rs.457 and wait for dips to enter.

#Buy beaten down P C Jewelers Ltd Futures at around Rs.333.15 for a short term target of Rs.377, SL: Rs.326. This stock will give up super duper returns in the short term.

It is pertinent to mention here that the stock of P C Jewelers Ltd fell from around Rs.580 - plus which is made in late January, 2018. However, it will benefit from dilution of Nirav Modi brand, due to elimination one of its major competitors in the gems and jewelry segment.  Moreover, on January 25, 2018 Vakrangee bought 20,00,000 shares of PC Jeweller at Rs.561.71 on the NSE. Earlier, the Delhi-based jewelry retailer PC Jewellers Ltd, denied that there was any reason for having worries that the company may be linked with Vakrangee, another firm that is under the scanner for allegedly manipulating its own stock. Investors were worried because Vakrangee has a tiny stake in PC Jeweler. Also, the company’s finance head Sanjeev Bhatia came on TV at the beginning of this month and said: “We have no business agreement with Vakrangee and none of our promoters have sold any stake in the firm. Besides, With 60% of gold demand coming from rural India, the budget’s focus on boosting rural and farm incomes could benefit companies such as Titan Co Ltd., Tribhovandas Bhimji Zaveri Ltd., PC Jeweller Ltd.

#Those who are holding the shares of 3i Infotech Ltd (Rs.5.65) should wait for the scrip to give a closing above Rs.6.30 to take fresh positions. This is a wonderful company and long term investors would definitely get benefited.

#Those who are holding the shares of Housing Development & Infrastructure Ltd (HDIL, CMP: Rs.49.90) should add the scrip on every decline with a SL at Rs.47. It is good that it is out of the F&O basket, due to obvious reasons. Now we can look for targets of Rs.91-97-121 in the coming days. Remain invested and average on every dip.

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

Market Pulse

After an initial volatility, stocks extended early gains and hit fresh intraday high in morning trade.

At 11:07 IST, the barometer index, the S&P BSE Sensex, was trading at 33,877.68 up 103.02 points or 0.31% and NSE was seen at 10,400.75 up 22.35 points or 0.22%. Metal and mining stocks gained. Telecom stocks saw mixed trend.

Stocks struggled for direction in opening trade amid mild volatility. Soon the key benchmark indices nudged higher and posted small gains in early trade.

The S&P BSE Mid-Cap index was up 0.42%. The S&P BSE Small-Cap index was up 0.43%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,366 shares rose and 808 shares fell. A total of 99 shares were unchanged. Breadth was negative in early trade.

Overseas, Asian stocks were trading lower as Treasury yields climbed back toward recent four-year highs. Chinese markets will reopen on Thursday, 22 February 2018. US markets remained closed yesterday, 19 February 2018 in observance of Presidents Day.

Back home, Tata Steel (up 1.51%), Hero MotoCorp (up 1.3%) and TCS (up 1.21%) were the top gainers from the Sensex pack.

IndusInd Bank rose 0.85% after the bank said it has no direct credit exposures to Nirav Modi nor any indirect credit exposures basis the Letter of undertaking (LOU) issued by Punjab National Bank (PNB). As regards Gitanjali Gems, the bank has a small, two digit exposure, not linked to any LOUs. The announcement was made during market hours today, 20 February 2018.

Metal and mining stocks gained. Vedanta (up 2.22%), JSW Steel (up 1.39%), Tata Steel (up 1.6%), Steel Authority of India (Sail) (up 2.12%), National Aluminium Company (up 1.32%), Hindustan Zinc (up 1.41%), Jindal Steel & Power (up 1.56%), Hindalco Industries (up 1.56%), NMDC (up 2.41%), Hindustan Copper (up 0.8%) edged higher.

Telecom stocks saw mixed trend. Bharti Airtel (up 1.23%), Idea Cellular (up 0.67%), MTNL (up 1.09%) and Tata Teleservices (Maharashtra) (up 0.63%) gained. Reliance Communications (down 0.7%) fell.

Shares of Bharti Infratel fell 0.85%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

JSW Energy rose 1.2% after the company said it signed a pact with the Government of Maharashtra for the manufacturing electric vehicles and energy storage systems. In addition to the earlier Memorandum of Understanding (MoU) with the Government of Gujarat with respect to electric vehicles (EV) manufacturing and associated businesses, the company has now entered into another MoU with the Government of Maharashtra for setting up facilities for the manufacturing of EV and energy storage systems in the state of Maharashtra. The announcement was made after market hours yesterday, 19 February 2018.

Vascon Engineers rose 2.31% after the company said it formally signed an agreement with Lina Ashar Foundation, Mumbai to develop a built-to-suit property at one of the company's land holdings in Pune. The announcement was made after market hours yesterday, 19 February 2018.

Under the agreement, Vascon will construct and deliver a total builtup area of approximately 135,000 square feet (SqFt) on long term lease to Lina Ashar Foundation, the school operator, in phases. The planned Billabong High International School will provide state-of-the-art infrastructure in terms of design and facilities to create a unique learning experience that will be first of its kind in the city.

Today's Calls:

#TV Vision Ltd (up 4.93%) is doing well today and has hit the Upper Circuit at Rs.18.10 in the NSE.. I hope you (Premium Members and my Blog Readers) have completed averaging the scrip yesterday.

#Yesterday's Call to the Premium Members: Buy NIFTY FUTURE around 10330-10335, SL: 10275 (CASH/SPOT), T: 10404-10425 ==> Target achieved. Book Profits....

#Buy Raymond Ltd at around Rs.952, SL: Rs. 942, T: Rs. 971-978 on T+1 basis. This  is a pure chart based call. Exit Raymond Ltd around COST price of Rs.952. Call Closed.

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

Winning Strokes

Photo: Udayavani

Trading for the week started on a subdued note as key indices logged modest losses as sentiment was marred by loan fraud cases in the PSU banks. The barometer index, the S&P BSE Sensex, lost 236.10 points or 0.69% to settle at 33,774.66. The Nifty 50 index lost 73.90 points or 0.71% to settle at 10,378.40. The last week's detection of a massive fraud at a Mumbai branch of the state-run Punjab National Bank (PNB) continued to weigh on sentiment. The latest reports suggesting a loan fraud case in PSU banks by now defunct Rotomac Pens also marred sentiment.

The recent rebound in global crude oil prices also raised concerns of its adverse impact on fiscal deficit as India imports most of its oil requirements. The Sensex settled below the psychological 34,000 mark after drifting below that level in early trade. The market dropped for the second day in a row.

A bout of volatility was seen in early trade as the key benchmark indices opened higher but quickly erased gains to sink in the negative zone. Stocks extended slide and hit fresh intraday low in morning trade. Key benchmark indices hovered in negative zone in mid-morning trade. Selling aggravated and indices nosedived to hit fresh day's low in afternoon trade. Domestic stocks continued to languish and hover near intraday low in mid-afternoon trade. Key indices cut losses in late trade.

The Sensex lost 236.10 points or 0.69% to settle at 33,774.66. The index slumped 456.39 points or 1.34% at the day's low of 33,554.37. The index rose 112.20 points or 0.33% at the day's high of 34,122.96.

The Nifty 50 index dropped 73.90 points or 0.71% to settle at 10,378.40. The index dropped 149.55 points or 1.43% at the day's low of 10,302.75. The index gained 37.05 points or 0.35% at the day's high of 10,489.35.

The S&P BSE Mid-Cap index declined 1.05%. The S&P BSE Small-Cap index fell 0.99%. Both these indices underperformed the Sensex.

Among the sectoral indices on BSE, the S&P BSE Healthcare index (down 1.1%), the BSE Auto index (down 1.11%), the BSE Capital Goods index (down 1.56%), the BSE Metal index (down 1.6%), the BSE Oil & Gas index (down 1.01%) and the BSE Realty index (down 1.12%) underperformed the Sensex. The BSE IT index (down 0.52%), the BSE Telecom index (down 0.53%) and the BSE Bankex index (down 0.57%) outperformed the Sensex.

The broad market depicted weakness. There were almost three losers against every gainer on BSE. 2,017 shares fell and 734 shares rose. A total of 162 shares were unchanged.

The total turnover on BSE amounted to Rs 4070.05 crore, lower than the turnover of Rs 4116.26 crore registered during the previous trading session.

Capital goods stocks edged lower. BEML was down 2.47%, ABB India 1.92%, Bharat Electronics 1.29%, Bharat Heavy Electricals (Bhel) 1.06%, and Siemens fell 2.31%. Punj Lloyd was up 0.49% and Thermax rose 1.82%.

PSU bank stocks continued to bleed following detections of frauds in some psu banks. State Bank of India was down 1.51%, Dena Bank 4.43%, Canara Bank 1.3%, and United Bank of India fell 2.36%.

Bank of Baroda slumped 5.48%, Allahabad Bank 6.3%, Bank of India 4.07% and Union Bank of India slumped 7.19%. The Central Bureau of Investigation (CBI) reportedly today, 19 February 2018, grilled Vikram Kothari, owner of the now defunct Rotomac Pens in Rs 800 crore loan fraud case. The Bank of Baroda had approached the CBI with a complaint against Kothari. Kothari had reportedly borrowed Rs 800 crore from various public sector banks including Allahabad Bank, Bank of India and Union Bank of India.

Punjab National Bank (PNB) lost 7.36%, extending recent steep losses triggered by the bank detecting a $1771.69 million fraud at a single branch in Mumbai. PNB made the announcement before trading hours on 14 February 2018.

PNB announced before trading hours on 14 February 2018, that it detected some fraudulent and unauthorised transactions (messages) in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance. Based on these transactions, other banks appear to have advanced money to these customers abroad. In the bank these transactions are contingent in nature and liability arising out of these on the bank shall be decided based on the law and genuineness of underlying transactions. The quantum of such transactions is $1771.69 million (approximately). The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land. The bank said it is committed to clean and transparent banking.

PNB clarified after market hours on 15 February 2018, that on 16 January 2018, the partnership firm of Nirav Modi group approached PNB branch at Brady House, Mumbai and presented a set of import documents with a request to allow buyers' credit for making payment to the overseas suppliers. Since there was no sanctioned limit in the name of the above firms, the branch officials requested the firms to furnish at least 100% cash margin for issuing Letter of Undertaking (LOU) for raising buyer's credit. On denial, the firms contested that they have been availing such transactions since past several years.

Metal and mining stocks declined. JSW Steel lost 2.97%, Steel Authority of India (Sail) 1.3%, Hindustan Copper 2.16%, National Aluminium Company 2.36%, Hindustan Zinc 0.22%. Jindal Steel & Power 0.64%, and NMDC 1.83%. Hindalco Industries 0.32% and Vedanta rose 0.33%.

Vakrangee was locked in 5% lower circuit at Rs 233.20 on profit booking after a recent rally. Shares of Vakrangee surged 27.57% in five trading sessions to settle at Rs 245.45 on Friday, 16 February 2018, from its close of Rs 192.40 on 8 February 2018.

Meanwhile, the Sensex has declined 522.81 points or 1.52% in two sessions to its ruling index, from a close of 34,297.47 on 15 February 2018.

Overseas, European shares were trading lower. Asian shares rose as sentiment improved gradually from a recent shakeout that stemmed from fears of creeping inflation and higher borrowing costs. Markets in China, Hong Kong and Taiwan remain closed for the holiday. US markets are closed today, 19 February 2018 in observance of Presidents Day.

Japanese exports rose for a 14th straight month in January 2018, helped by continued demand from Asia for equipment to make semiconductors, data from Japan's finance ministry showed today, 19 February 2018. Exports grew 12.2% in January from a year earlier, following a 9.3% year-on-year gain in the previous month.

In US, the Dow industrials and S&P 500 logged their sixth straight advance on Friday, 16 February 2018 but the Nasdaq lagged its peers, as political drama sparked turbulent trade late in the session. Special Counsel Robert Mueller announced the indictments of 13 Russian nationals and three Russian entities, accusing them of interfering in the 2016 US presidential election. The indictment said the defendants were supporting Donald Trump's campaign and disparaging Hillary Clinton.

#Today, two buy calls were initiated for the Premium Members during the dying hours of the market: 

(i) Buy NIFTY FUTURE around 10330-10335, SL: 10275 (CASH/SPOT), T: 10404-10425....

(ii) Buy the shares of Jai Corp Ltd at around Rs.165, SL: Rs.161 for a very short term target of Rs.172, .

Join Premium Information Service or trade through my associated brokerage house BMA Wealth Creators Ltd, with a minimum portfolio size of Rs.2 lakhs to be a part me and stay ahead of others. I am giving special discounts to the small investors (Portfolio Size: below Re.1 lakh), till 28 February, '18. Hence, you are requested to avail of the same, till the offer lasts. 

#The shares of TV Vision Ltd (Rs.17.10) is probably near its bottom and hence a bounce is expected from the oversold levels. If we look at the December, '17 quarter results of the company we would find that its total revenue had moved up to Rs.27.81 crore as against Rs.26.04 crores in the September, '17 quarter. Also, the PBDT  of company for Q3FY18 is Rs.2.02 crore as against Rs.16 lakhs in the September, '17 quarter. It is due to Depreciation and Tax component that the company came out with loss in the December, '17 quarter.

The year 2018 is expected to be action packed since it will be a big year before the general elections in 2019. The company is likely to hike the ad rates going forward. Also, similar to the telecommunications sector, television broadcasting organisations, including direct-to-home (DTH), cable services and headend in the sky (HITS) require huge investments in setting up technology and distribution networks and, as such, are ‘asset-rich’ organisations.

Indian Budget, '18-19, was a big thumbs up for Digital India and digitisation. With a view to promote digitization, the government of India is set to make the necessary investments in robotics, IoT, AI, digital manufacturing and big data analysis with the NITI Aayog to establish a national programme to direct efforts in the artificial intelligence. The governmemt has committed itself to the development of technology along with concentrating on AI and its application, a revolutionary move for the digital industry. The ministry has decided to double its Digital India budget to around Rs.3000 crore. 

The ministry has also proposed to set up 5 lakh Wi-Fi hotspots to give access to 5 crore rural citizens, which means digital and internet penetration into smaller pockets of the country will result in increased data consumption across India. The move will help brands, agencies and OTT players to create target content for such markets. 

Moreover, the government's thrust to rural infrastructure and agriculture in the budget could lead to additional broadcast revenues and may increase the number of TV households in India. As the standard of living increases, electrification expands and affordability goes up, the rural India will buy more television sets and the penetration will increase. A lot of the freedish homes might also get converted to pay TV homes, adding up to the subscription revenues of the broadcasters. 

“Our baseline study indicated that economic prosperity and higher living standards goes hand in hand with TV penetration and higher TV consumption. With only two-thirds of Indian homes having access to TV, there is huge headroom for growth here, and this year’s budget should help drive up TV ownership and consumption in rural India," Dasgupta said.

Besides, advertising expenditure in India is expected to grow at 13% to touch Rs.69,346 crore in 2018 over 2017, according to a forecast by WPP-owned media agency GroupM in its report This Year Next Year (TYNY). This is higher than 10% that GroupM put out for 2017.

Therefore at the CMP of Rs.17.10, the share of the company having 5-established TV channels and having great plans ahead is available at the price of dirt. The scrip of TV Vision Ltd, should get ultimate support in the range of Rs.15.3-Rs.17.

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

Market Pulse

Key indices extended initial gains and hit fresh intraday high in morning trade. At 11.26 am IST, the Sensex was seen trading at 35,392.81 up 132.52 points, while Nifty is seen at 10,841.80 up 24.80 points  or 0.23%. Firmness in most Asian stocks and GST council in its latest meet slashing the tax rate on 54 services and 29 items and also simplifying return filing process for businesses boosted sentiment.

The S&P BSE Mid-Cap index was up 0.43%, underperforming the sentiment. The S&P BSE Small-Cap index was up 0.7% outperforming the sentiment.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,388 shares rose and 976 shares fell. A total of 82 shares were unchanged.

Telecom stocks declined. Reliance Communications (down 2.89%), Tata Teleservices (Maharashtra) (down 3.77%), MTNL (down 0.57%) and Idea Cellular (down 0.79%) declined.

Bharti Airtel fell 0.91% after consolidated net profit fell 16.50% to Rs 560.70 crore on 12.93% decline in net sales to Rs 20318.60 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 18 January 2018.

Bharti Airtel's consolidated earnings before interest taxes depreciation and amortization (EBITDA) fell 11.5% to Rs 7587 crore in Q3 December 2017 over Q3 December 2016.

Shares of Bharti Infratel dropped 0.29%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Cement stocks were mixed. Shree Cement rose 0.42%. ACC (down 1.14%), Ambuja Cements (down 1.25%), and UltraTech Cement (down 1.62%) declined.

Grasim Industries advanced 0.2%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Healthcare Global Enterprises jumped 6.08% after the Reserve Bank of India (RBI) yesterday, 18 January 2018, notified that the foreign investment limit for investment by Foreign Portfolios Investors (FPIs) in the company has increased from 24% to 100% of its paid up capital. HealthCare Global Enterprises has passed necessary resolutions of its board of directors and general body.

Further, owing to the above increase in the investment limit, it is notified that the aggregate shareholding by FPIs in HealthCare Global Enterprises has gone below the prescribed FPIs investment limit for the company. Hence, the restrictions placed on the purchase of shares of the above company by FPIs are withdrawn with immediate effect.

Meanwhile, the Union Finance Minister Arun Jaitley Chaired the 25th meeting of the GST Council in New Delhi yesterday, 18 January 2018. The Council has recommended certain changes in GST/IGST rate and clarifications in respect of GST rate on certain goods as per discussions in the 25thGST Council meeting. It slashed the tax rate on 54 services and 29 items, including old and used motor vehicles bio-diesel, while also simplifying return filing process for businesses. Certain policy changes have also been recommended by the GST Council.

Overseas, most Asian stocks gained although losses on Wall Street slowed the advance. Investors continue to watch the latest US budget battle on Capitol Hill, where uncertainly over a possible partial government shutdown this weekend continues. Legislation to avoid a US government shutdown at midnight on Friday advanced in Congress as the House of Representatives on Thursday night approved an extension of federal funds through 16 February, although the bill faced uncertain prospects in the Senate.

US stock benchmarks finished lower yesterday, 18 January 2018, pressured by worries over the possibility of a partial government shutdown, as investors sorted through a fresh batch of quarterly earnings results.

First-time weekly jobless claims fell to a 45-year low, dropping by 41,000 to 220,000. Meanwhile, construction of new houses fell 8.2% in December to a 1.19 million annual rate. Permits for future construction were basically flat at 1.30 million. Still, permits, housing starts and the number of new homes completed all hit the highest levels since 2007. A gauge of Philadelphia-area manufacturing fell to five-month low of 22.2 in January, the Philadelphia Fed said.

Today's Calls: 

#Intraday Sell Hindalco Industries Ltd at around Rs,255-254, T: Rs.249, SL: Rs.256.6. Alternatively those who have entered the stock around Rs.79-81, on my recommendation couple of years back should book profit and exit the counter. You can again enter around Rs.228-229. The point is though global copper consumption is likely to be higher by about 3% and the capacities have been shut down in China because of environmental reasons while fundamentally demand is picking up; but in India we are also having imports into India from the ASEAN countries with whom India is having an FTA. This is putting a big challenge because of two-three reasons; one is that for the FTA countries, the duty has become zero on copper imports. The second, smelting business is a huge working capital intensive business and for example, the size of its Indian operations need about Rs.10,000 to Rs.15,000 crore of working capital. The cost of working capital in India is relatively higher compared to the developed or the ASEAN countries. For example, in Japan, it is almost zero and that really poses a big challenge for the Indian producers. This is likely to put pressure on Indian copper producers in the short term. Hence, book profits now and enter later when the things look a little from here.

#The shares of 3i Infotech Ltd (Rs.7.05) should get the final support in the range of Rs.6.75-7. In this global IT company who's who of the Indian Corporate world and big shots hold around 52.11% stake. The company came  out with good set of numbers for Q3FY18.
In absence of any negative news it seems those who entered earlier, at around Rs.5 is offloading their holdings, leading to the stock hitting the lower boundaries set by the exchanges. Fundamentals of a company cannot change so fast that it warrants, repeated LCs.  This is an investment grade scrip as it has large institutional investors, whose list is giving below, holding stakes:
Financial Institutions/Banks hold 31.61%,
Insurance Companies hold 1.63%,
Foreign banks hold 14.65%,
Reliance Capital holds 1.85%,
SREI Equipment Finance Ltd holds 1.01%,
Tata Capital Financial Services Ltd holds 1.75%,
MACSF Epargne Retraite hold 3% and
Energy Management hold 3%.
The Company recently announced that it has allotted 26,39,09,361 equity shares of Rs.10 each and 44,49,82,211 0.10% Cumulative Non-Convertible Redeemable Preference Shares of face value Rs.5 each ('Class B Preference Shares') at par on a preferential basis to Srei Multiple Asset Investment Trust, a category II alternative investment fund within the meaning of the Securities and Exchange Board of India (Alternative I.nvestment Funds) Regulations, 2012 (on behalf of or for appropriation to its scheme, Vision India Fund) on January 15, 2018. It is a board managed company like ITC Ltd, Subex Ltd, etc and doing fine under the current leadership. The stock would soon start hitting the upper circuits -- accumulate on declines. I am looking for targets of Rs.50-plus in the coming days. Start accumulating when the share price stabilizes, which I strongly feel will be around Rs.7.

#The stock of Federal Bank Ltd (Rs.102.40) is consolidating around the support of Rs.102-103. The company came out with good set of numbers for the Q3FY18, though there were some concerns regarding its asset quality. I am looking for a short term target of Rs.115-117. Federal Bank  Ltd is a private bank like ICICI Bank or HDFC Bank. Therefore, Stay Invested.

#The stock of Housing Development Infrastructure Ltd (Rs.60.60) is likely to find support around Rs.59-60 ranges. The company is in final stages of  negatiation with Union Bank of India. We can again look for targets of Rs.65-66, before the January,  '18 expiry. Those who have not exited at the stop  loss or have booked profit earlier, can accumulate around Rs.60.

#Investors can buy the stock of Jain Irrigation Systems Ltd at around Rs.132.5, for a short term targets of Rs.137-141. The Finance Minister is like to give a thrust on the agriculture sector in the upcoming union budget; the said recommendation is based on that premise.

~~ with inputs from Capital Market - Live New

WINNING STROKES

IT Sector was buoyant today

Key benchmark indices settled with modest losses led by decline in index pivotals Reliance Industries, ITC and HDFC. However, gains in Infosys, TCS and ICICI Bank cushioned steep losses on the bourses. The barometer index, the S&P BSE Sensex, fell 72.46 points or 0.21% to settle at 34,771.05. The Nifty 50 index fell 41.10 points or 0.38% to settle at 10,700.45.

Bank stocks edged lower. Metal and mining stocks dropped. Realty stocks declined.

Indices opened with small gains and hovered in the positive terrain near the flat line till morning trade. Stocks slipped into the red in mid-morning trade but soon pared losses. The market once again reclaimed positive terrain in early afternoon trade, however, once again drifted lower in afternoon trade. Indices slipped into the red again after staging recovery in mid-afternoon trade. Indices swung between gains and losses in late trade.

The Sensex lost 72.46 points or 0.21% to settle at 34,771.05, its lowest closing level since 12 January 2018. The Sensex rose 92.52 points or 0.27% at the day's high of 34,936.03 in morning trade. The index fell 107.96 points or 0.31% at the day's low of 34,735.55 in mid-afternoon trade.

The Nifty 50 index lost 41.10 points or 0.38% to settle at 10,700.45, its lowest closing level since 12 January 2018. The Nifty gained 20.80 points or 0.19% at the day's high of 10,762.35 in morning trade. The index declined 53.70 points or 0.5% at the day's low of 10,687.85 in mid-afternoon trade, its lowest level since 12 January 2018.

Among the secondary indices, the S&P BSE Mid-Cap index fell 1.74%. The S&P BSE Small-Cap index dropped 2.21%. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 7648.82 crore, higher than turnover of Rs 5271.95 crore registered during the previous trading session.

The broad market depicted weakness. There were more than three losers for every gainer on BSE. 2,223 shares declined and 749 shares rose. A total of 119 shares were unchanged.

Index heavyweight Reliance Industries lost 2.54% to Rs 923.50.

Index heavyweight and cigarette major ITC dropped 2.06% to Rs 261.75.

Index heavyweight and housing finance major HDFC fell 1.14% to Rs 1,848.70.

Bank stocks edged lower. Among PSU bank stocks, IDBI Bank (down 5.24%), Syndicate Bank (down 4.41%), Central Bank of India (down 1.67%), Andhra Bank (down 3.84%), State Bank of India (SBI) (down 2.02%), Punjab National Bank (down 4.03%), Bank of Baroda (down 4.27%), Canara Bank (down 4.39%), Bank of India (down 3.65%) and Union Bank of India (down 2.19%) fell.

Among private bank stocks, Axis Bank (down 0.35%), RBL Bank (down 1.46%), Yes Bank (down 0.61%), Kotak Mahindra Bank (down 0.63%) and IndusInd Bank (down 0.69%) fell. ICICI Bank (up 1.43%) and HDFC Bank (up 0.48%) rose.

Federal Bank lost 7.51%. The bank's net profit rose 26.43% to Rs 260.01 crore on 6.76% growth in total income to Rs 2729.83 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 15 January 2018.

The bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 2.52% as on 31 December 2017 as against 2.39% as on 30 September 2017 and 2.77% as on 31 December 2016. The ratio of net NPAs to net advances stood at 1.36% as on 31 December 2017 as against 1.32% as on 30 September 2017 and 1.58% as on 31 December 2016.

The bank's provisions and contingencies rose 2.27% to Rs 162.43 crore in Q3 December 2017 over Q3 December 2016.

Metal and mining stocks dropped. Steel Authority of India (down 5.99%), Bhushan Steel (down 5.07%), Vedanta (down 2.7%), Tata Steel (down 2.16%), NMDC (down 3.82%), Hindalco Industries (down 2.4%), JSW Steel (down 1.32%), Hindustan Zinc (down 2.06%) and National Aluminium Company (down 8.37%) edged lower. Jindal Steel & Power gained 1.01%.

In the upcoming budget 2018-19, the metal industry is expecting a push for use of indigenous products, encouraging Make-in-India and increased spending on infra project including housing for all and roads.

Buying activity was witnessed in IT stocks. HCL Technologies (up 4.61%), Infosys (up 3.93%), and Wipro (up 4.88%) edged higher.

TCS gained 3.77% after the company announced the launch of TCS HOBS (Hosted OSS/BSS), a TM Forum certified platform for digital enterprises, on Microsoft Azure. The announcement was made during market hours today, 16 January 2018. The cloud ready TCS HOBS platform will enable customers to get to market quicker and benefit from a pay-as you-use commercial model.

Separately, TCS said that M&G Prudential, the UK and European savings and investments business of Prudential plc, entered into a new agreement with the company to digitally transform their business and deliver enhanced service for its UK savings and retirement customers. The value of the agreement exceeds 500 million pounds or $690 million over 10 years and covers the support of over 4 million customer policies. The announcement was made during market hours today, 16 January 2018.

Tech Mahindra rose 2.56% after the company said that it partnered with ContextSpace Solutions, a privacy research and development firm based in Israel, to develop the world's first global software privacy ecosystem, MyData Shield. Providing a comprehensive approach to data protection thereby delivering privacy by design and by default, the cloud-based software privacy ecosystem enables corporate software developers and start-ups to meet tough, global privacy and data protection regulations.

By 2020, over one-third of all data will live in or pass through the cloud, with data production in 2020 being estimated at 44 times greater than it was in 2009.Tech Mahindra issued the press release on its website yesterday, 15 January 2018.

Realty stocks declined. Indiabulls Real Estate (down 5.95%), Unitech (down 8.06%), Sobha (down 1.63%), Oberoi Realty (down 0.67%), DLF (down 3.67%), HDIL (down 2.67%) and Phoenix Mills (down 3.56%) edged lower.

Severely impacted by various reforms like RERA, GST and demonetisation, the realty sector is reportedly pinning its hopes on Budget 2018-19 for relief measures like lower taxes and infrastructure status. Industry players are expecting rationalisation of the GST rates from the current 12% to 6% and bringing stamp duty under the ambit of GST. Single window clearances for all approvals and additional tax incentives for first time home buyers are also expected.

ICICI Lombard General Insurance Company rose 3.81% after net profit rose 5.2% to Rs 231.76 crore on 9.60% increase in total income to Rs 2019.77 crore in Q3 December 2017 over Q3 December 2016. The result was announced during trading hours today, 16 January 2018.

Delta Corp surged 3.62% after consolidated net profit jumped 344.7% to Rs 44.74 crore on 62.6% growth in total income to Rs 170.10 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 15 January 2018.

Gujarat Narmada Valley Fertilizers & Chemicals lost 10.23% after the company said that it has indefinitely closed its TDI-II plant at Dahej following leakage. The announcement was made during market hours today, 16 January 2018.

GNFC said that in the morning on 15 January 2018, there has been a sudden leakage at TDI-II plant, Dahej, which called for plant shutdown at Dahej. Due to safety measures already put in place by the company over a period of time, neither there is any property damage nor any loss of life, GNFC said.

However, as a matter of abundant precaution, management has decided to close the plant indefinitely till the root cause is thoroughly analysed, reviewed and necessary further safety measures to be taken are fully evaluated in addition to current safety precautions, the company said.

Among macroeconomic data, exports rose 12.36% to $27.03 billion in December 2017 over December 2016. Imports rose 21.12% to $41.91 billion in December 2017 over December 2016. The trade deficit for December 2017 was estimated at $14.88 billion as against the deficit of $10.54 billion during December 2016.

Overseas, most European stocks edged higher as investors awaited the release of corporate earnings. On macro front, the trade surplus in the 19 countries sharing the euro expanded in November to its highest point in eight months. The European statistics office Eurostat said the euro zone's surplus in goods trade rose in unadjusted terms to 26.3 billion euros in November, up from 18.9 billion euros in October. It was also higher than the 23.8 billion surplus recorded a year earlier.

Asian stocks gained, erasing early losses amid announcements of corporate earnings. US stock markets remained shut yesterday, 15 January 2018, for the Martin Luther King Jr. holiday.

#Today, the stocks of 3i Infotech Ltd (CMP: Rs.8.15), inspite of coming out with decent set of numbers since the last few quarters, hit the lower circuit, due to some chartical (technical) adjustments and should not be a cause for worry. 

On the other hand most of the IT heavyweights reaped solid gains during the session after global brokerage firm Morgan Stanley upgraded ratings for Infosys, Tech Mahindra and HCL Technologies to overweight. The Nifty IT index jumped 3.65% to 12,430.95 with 9 out of 10 constituents ending in the green and 1 in the red. The share of 3i Infotech Ltd is expected to bounce from around Rs.7.9-8 levels and move northwards, for shot term targets of Rs.13-19.

#The shares of HDIL today touched Rs.66 intraday before closing at Rs.63.85. The real estate sector has been battling the triple shocks of demonetization, RERA and GST. The sector is yet to show significant signs of recovery, new figures from the capex-tracking database of the Centre for Monitoring Indian Economy (CMIE) show.. Project announcements in the December quarter plunged to their lowest since 2005, marking a fall of 91% from the year-ago period, the data shows. The property developers are hoping that in the ensuring budget, there would be  a revision in GST rate. A buyer of an under-constructed property faces an effective GST rate of 12% since it is considered as availing of services from the builder. But a sale of a completed property is not considered as rendering of services. 

Credit Suisse, in a December note, said the price arbitrage between under-construction and fully constructed houses has gone up significantly due to GST tax, slowing down of sales of under-construction houses and squeezing of developers' balancesheets. 

The demand for the sector remained sluggish, with seven top cities sitting on an unsold inventory of 6,85,000 housing units by the end of September quarter. As per Cushman & Wakefield, the housing sector witnessed a 35% fall in new supply across eight major cities to about 74,000 units in 2017. Launches of low-cost homes rose a modest 6% during the year. RERA requirements have pushed back launches by developers who are unable to meet the eligibility criteria, Credit Suisse said. 
Developers are also pushing for abolition of stamp duty, which continues to remain in force, even after implementation of GST. Granting of infrastructure status to the real estate sector for the affordable housing sector was the biggest highlight of the 2017 Budget.

On the positive side: Home loan rates have fallen by more than 250 basis points over the last two years and the race to acquire market share in affordable housing has only heated up more. This is all the more so given the government’s push to affordable housing. To make the housing market more inclusive, the NDA government has offered heavy subsidies on mortgage loans to buy what are now called affordable homes. And this has been the fastest growing slice of the mortgage loan pie since FY16. Under Pradhan Mantri Awas Yojana, the government offers interest subsidy of 6.5% to economically weaker sections on their home loans. These are individuals with income of up to Rs.3 lakh are the biggest beneficiaries of the interest subsidy.

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

Winning Strokes

The key benchmark indices registered small gains in a range bound session of trade. The barometer index, the S&P BSE Sensex, rose 90.40 points or 0.26% to settle at 34,443.19. The Nifty 50 index rose 13.40 points or 0.13% to settle at 10,637. The Sensex and the Nifty, both, hit record high in intraday as well as on closing basis.

Continuous foreign fund inflows and bets by investors amid optimism over Q3 FY 2018 earnings and upcoming budget helped the key indices to hit record highs. Positive global cues also lifted investors' spirit. However, the movement for the key indices was confined to a narrow range around the flat line throughout the session.

Overseas, European stocks edged higher as investors monitored a fresh batch of economic data. Official data released today, 9 January 2018 showed that industrial production in Germany, Europe's biggest economy, picked up strongly in November after two months of declines. The Economy Ministry said that production was up 3.4% compared with the previous month.

Most Asian stocks closed higher as investors in the region digested earnings guidance from tech heavyweight Samsung Electronics and kept an eye on inter-Korea talks. North and South Korea have begun high-level talks, the first between the countries in two years. North Korea will reportedly send athletes and cheerleaders to next month's Winter Olympics in South Korea, after the two countries held their first official talks for more than two years. The talks represent a cautious diplomatic breakthrough after months of rising tensions over Pyongyang's nuclear weapons programme. US President Donald Trump called the talks a big start, adding that it would be a great thing for all of humanity if they resulted in a positive outcome.

In the US, the S&P 500 and Nasdaq composite finished Monday's session at all-time highs as investors remained optimistic on the US economy.

Back home, the Sensex rose 90.40 points or 0.26% to settle at 34,443.19, its record closing high. The index rose 135.24 points, or 0.39% at the day's high of 34,488.03, a record high. The index fell 9.38 points, or 0.03% at the day's low of 34,343.41.

The Nifty 50 index rose 13.40 points or 0.13% to settle at 10,637, its record closing high. The index rose 35.55 points, or 0.33% at the day's high of 10,659.15, a record high. The index fell 20 points, or 0.19% at the day's low of 10,603.60.

Among secondary indices, the S&P BSE Mid-Cap index fell 0.40%. The S&P BSE Small-Cap index advanced 0.08%. Both these indices underperformed the Sensex.

The breadth, indicating the overall health of the market, was negative. On the BSE, 1,623 shares fell and 1,369 shares rose. A total of 102 shares were unchanged.

The total turnover on BSE amounted to Rs 5442.86 crore, lower than turnover of Rs 6007.76 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Telecom index (down 1.35%), the S&P BSE Utilities index (down 0.67%), the S&P BSE Power index (down 0.64%), the S&P BSE Healthcare index (down 0.63%), the S&P BSE Auto index (down 0.39%), the S&P BSE Capital Goods index (down 0.36%), the S&P BSE Industrials index (down 0.15%), the S&P BSE Teck index (down 0.13%), the S&P BSE Finance index (down 0.08%), the S&P BSE Basic Materials index (down 0.07%), the S&P BSE Bankex (up 0.04%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.07%) and the S&P BSE Oil & Gas index (up 0.2%), underperformed the Sensex. The S&P BSE Metal index was unchanged. The S&P BSE IT index (up 0.32%), the S&P BSE FMCG index (up 0.45%), the S&P BSE Consumer Durables index (up 0.81%), the S&P BSE Energy index (up 1.08%) and the S&P BSE Realty index (up 2.88%), outperformed the Sensex.

Most banks declined. Among private sector banks, RBL Bank (down 1.14%), City Union Bank (down 0.77%), ICICI Bank (down 0.64%), Federal Bank (down 0.13%), Axis Bank (down 0.04%) and Kotak Mahindra Bank (down 0.01%), edged lower. HDFC Bank (up 0.21%), IndusInd Bank (up 0.22%) and Yes Bank (up 2.31%), edged higher.

Among public sector banks, Bank of Maharashtra (down 1.69%), UCO Bank (down 1.38%), United Bank of India (down 1.09%), Andhra Bank (down 1.02%), Punjab & Sind Bank (down 1%), Corporation Bank (down 0.85%), Union Bank of India (down 0.62%), Punjab National Bank (down 0.46%), Central Bank of India (down 0.4%), Indian Bank (down 0.39%), Dena Bank (down 0.37%), IDBI Bank (down 0.32%), Canara Bank (down 0.3%) and Bank of India (down 0.15%), edged lower. Vijaya Bank (up 0.15%), Allahabad Bank (up 0.41%), Syndicate Bank (up 0.63%) and Bank of Baroda (up 1.64%), edged higher.

State Bank of India (SBI) fell 0.46% at Rs 304.25. The bank said that its executive committee of the central board is scheduled to meet on 17 January 2018, to consider approval for issuance of long term bonds of Rs 5000 crore for financing of infrastructure and affordable housing in domestic and overseas market. The announcement was made during market hours today, 9 January 2018.

Metal and mining stocks dropped. Jindal Steel & Power (down 3.14%), Hindustan Copper (down 2.72%), Hindalco Industries (down 1.52%), National Aluminium Company (down 1.51%), JSW Steel (down 0.98%), Steel Authority of India (down 0.86%), Vedanta (down 0.65%) and Hindustan Zinc (down 0.28%), edged lower. Tata Steel (up 0.44%) and Bhushan Steel (up 4.49%), edged higher.

NMDC fell 4.48% at Rs 154.60. The promoter Government of India (GoI) after market hours yesterday, 8 January 2018, announced a stake sale in the company through an offer for sale (OFS) at a floor price of Rs 153.50 per share. GoI is selling up to 4.74 crore (or 1.5%) equity shares today, 9 January 2018 for non-retail investors only and retail investors and for non-retail investors who choose to carry forward their un-allotted bids tomorrow, 10 January 2018, with an option to additionally sell up to 4.74 crore (or 1.5%) equity shares of the company.

Separately, NMDC reported iron ore production of 24.23 million tonnes (MT) in December 2017. The company reported iron ore sales to 25.64 MT in December 2017. The announcement was made during market hours today, 9 January 2018.

Coal India advanced 5.63% at Rs 304.05 after the company's board at its meeting held on 8 January 2018, approved revision of non-coking coal prices with effect from 9 January 2018. This will be applicable to all subsidiaries of Coal India including NEC for regulated and non-regulated sectors. Due to this revision, Coal India will earn incremental revenue of about Rs 1956 crore for the balance period of FY 2018. The projected annual incremental revenue would be Rs 6241 crore. The announcement was made after market hours yesterday, 8 January 2018.

Index heavyweight and cigarette major ITC advanced 1.94% at Rs 270.50. The company said that the Supreme Court by an order dated 8 January 2018 has stayed operation of the judgement and order dated 15 December 2017 passed by the Karnataka High Court. The announcement was made during market hours today, 9 January 2018.

It may be recalled that the Karnataka High Court by its judgement and order dated 15 December 2017, held a notification issued by the Ministry of Health and Family Welfare, Government of India, as unconstitutional. The said notification, inter alia, prescribed textual and pictorial warnings to occupy 85% of the front and back panels of tobacco product packages. The High Court also held that the earlier rules prescribing 40% warning on the front panel of tobacco product packages shall revive. Certain individuals and NGOs have filed special leave petitions against this judgment, along with a prayer for stay of the judgment.

#Today also Pincon Spirit Ltd hit the buyer freeze at Rs.47.60, up 9.93%. If you remember the scrip was recommended around Rs.37-38 a couple of days. This is the 3rd consequtive rally after it was recommended both to the Premium Members and also in this free blog.

#MBL Infrastructure Ltd today closed at Rs.28.60 in the NSE over uncertainty surrounding the crucial meeting on 11 January, 2018.  What to do with the scrip? It is pertinent to mention here is that making money on consistent basis from the share market is not a child's play. It  is because stock movements many times are irrational and have no connection with the fundamentals, for example a Re.1 face value share named GVK Power and Infrastructure Ltd with huge debts is trading at Rs.22.50 or Rs.250 on Rs.10 face value. What is so special about this power and infrastructure company that it has to trade at such astronomical levels only because a fund manager has purchased the same??!!

#Today's call Surana Solar Ltd hit the buyer freeze at Rs.19.85. However, this is a high risk call and non-risk taking investors should avoid.

#Suzlon Energy Ltd today touched Rs.16.50, before closing at Rs.16.40. The investors should do well to book some profits in the counter. If you can recollect, the stock was recommended around Rs.13.60.

#Today, TV Vision Ltd hit another buyer freeze at Rs.22.85 in the NSE.. The scrip was recommended around Rs.21 on 8th January, '18.

#My recommended Jai Prakash Associates Ltd recommended around various prices starting from around Rs.7-8 today made a high of Rs.24.20. The investor can hold with a SL of Rs.21.

#Today, Sri Adhikari Brothers Television Network Ltd was recommended to the Premium Members at around Rs.28-29.65 and also have taken position in some accounts which I manage. However, though the stock hit the upper circuit, it has a stiff resistance at around Rs.31-32, which it needs to overcome for further upmove.

#My Recommended Unitech Ltd is consolidating around Rs.10, after it made an high of Rs.12.25 some days back. The investors are suggested to book complete profits and buy only if the scrip gives a closing above Rs.12.30. However, long term investors can hold the scrip with a SL at Rs.8.7.

#From 16th January, '18, the charges for my Premium Service (for sharing information) will increase to Rs.18,000 per year. And from that date, I will give only calls (Information) like I used to give earlier. The support during the market hours will be stopped due to some unscrupulous elements, who have started to misuse this service and who ping me 100 times in a day for trivial reasons. Moreover, they bring a bouquet of scrips recommended by various agencies including brokerage houses, during market hours, take my inputs and then either sell it to their clients or pass it to their friends. 
It it to be understood that this Premium Service is only for one person and not for 100s of your friends who wants enjoy the fruits without paying anything. Now if you want support during the market hours, then the charges would be Rs.2 (two) lakh per year -- this  is just a deterrent for these unholy elements, who want mass support paying only for one person or only a tiny fraction. 

Also, those who wants their accounts to be managed by me have to compulsorily open account with BMA Wealth Creators Ltd so that I know who is purchasing what or else they take the name of the scrips from me during the market hours and then say, they have not invested in the same or give some excuses, so that they do not have PAY me the sharing amount. This is a very rampant disease prevalent from among the Army Colonels to NRIs to IT Professionals to Local Businessmen -- dishonest lot. You will not believe how high profile men and women are dishonest and I have a very bad experience of people taking my service and not paying me. 

However, there are people like Prakash Lotankar (Mumbai) or Arunabha Mukherjee (Kolkata) or Rupa Bashrur (Bangalore) who are very decent, cultured and different from the rest. These kinds of people have always appreciated and paid for my efforts.

~~with inputs from Capital Market - Live News

Market Pulse

Key benchmark indices extended early gains and hit fresh intraday high in morning trade. At 10:30 IST, the barometer index, the S&P BSE Sensex, was up 158.16 points or 0.47% at 34,127.80. The Nifty 50 index was up 46.25 points or 0.44% at 10,551.05. The Sensex was trading above the psychological 34,000 mark after opening above that level. Positive global cues boosted sentiment.

The Sensex and the Nifty, both, hit record high levels in morning trade. The Sensex rose 205.57 points, or 0.61% at the day's high of 34,175.21 in morning trade, its record high level. The index rose 51.20 points, or 0.15% at the day's low of 34,020.84 in early trade. The Nifty rose 58 points, or 0.55% at the day's high of 10,562.80 in morning trade, its record high level. The index rose 17.50 points, or 0.17% at the day's low of 10,522.30 in early trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.61%. The BSE Small-Cap index was up 0.96%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,731 shares rose and 723 shares fell. A total of 109 shares were unchanged.

Most metal shares rose. Bhushan Steel (up 3.58%), JSW Steel (up 3.25%), NMDC (up 1.78%), Hindustan Copper (up 1.65%), Tata Steel (up 1.53%), Vedanta (up 1.39%), National Aluminium Company (up 1.14%), Hindalco Industries (up 1.04%), Hindustan Zinc (up 0.3%) and Steel Authority of India (up 0.15%), edged higher. Jindal Steel & Power was down 0.25%.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for March 2018 delivery was currently up 0.21% at $3.27 per pound on the COMEX.

FMCG shares were mixed. Bajaj Corp (up 1.14%), Britannia Industries (up 0.84%), Tata Global Beverages (up 0.82%), Colgate Palmolive (India) (up 0.50%), Jyothy Laboratories (up 0.42%), Hindustan Unilever (up 0.32%) and GlaxoSmithKline Consumer Healthcare (up 0.31%), edged higher. Godrej Consumer Products (down 0.2%), Nestle India (down 0.26%), Procter & Gamble Hygiene & Health Care (down 0.28%), Dabur India (down 0.45%) and Marico (down 0.45%), edged lower.

Overseas, most Asian shares rose as US jobs data pointed to firm economic growth. US stock indices closed at all-time highs on Thursday, while the Dow topped the 25,000 milestone for the first time. The Dow Jones Industrial Average rose 0.6% to finish at 25,075.13. The S&P 500 rose 0.4%. The Nasdaq Composite Index gained 0.2%.

The US ADP National Employment Report on Thursday showed US private employers added 250,000 jobs in December, the biggest monthly increase since March. Meanwhile, initial jobless claims, a tool to measure layoffs, rose 3,000 to 250,000 in the seven days ended 30 December 2017, the Labor Department said Thursday. The number of people already collecting unemployment benefits, known as continuing claims, fell 37,000 to 1.91 million.

Today's Calls:

#Buy Pincon Spirit Ltd at around Rs.37-38, for short term targets of Rs.63-71. It's old name is Sarang Viniyog Ltd which it changed to Pincon Spirit Ltd on May 09, 2012. Most of the liquor stocks were seen rising during the last few months after the honourable Supreme Court of India found ‘no merit’ in a plea seeking a ban on liquor across the country claiming that it caused death, health problems, rise in crime graph and financial loss to the people. It is pertinent to mention here that the Supreme Court of India allowed sale of liquor in hotels and restaurants on the national and state highways within the municipal limits, around 3 - months back. The apex court on December 15, 2016 had imposed a ban on sale of liquor within 500 metre of the state and national highways from April 1. However, on August 23, 2017 it clarified that the ban is not applicable within the municipal limit.

#Those who are still holding the shares of Orchid Pharma Ltd (Rs.22.15), formerly Orchid Chemicals Ltd and Pharmaceuticals Ltd from around Rs.18, when it was first recommended in this blog, can continue to hold with a SL at Rs.19.50.

#I have spoken with the source of MBL Infrastructure Ltd (Rs.29.20) and the feedback I got is positive, as the company is open and the employees are working. We will get a more clearer picture by 15th January, 2018. The government has recently amended the IBA, and now we can look for positive verdict from the NCLT. However, even if a strategic investor takes over it, it will be positive for the shareholders.

~~with inputs from Capital Market - Live News