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 Hence, the restrictions placed on the purchase of shares of the above company by FPIs are withdrawn with immediate effect.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

Market Pulse

The Key benchmark indices are trading in the Green during the morning trade. At 11.16 am, the Sensex was seen at 33,905.22 up 92.96 points or 0.27%. The Nifty was trading at 10,477.75 up 35.55 points or 0.34%.

Among secondary barometers, the BSE Mid-Cap index was up 0.61%. The BSE Small-Cap index was up 1.06%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than three gainers against every loser on BSE. 1,798 shares rose and 563 shares fell. A total of 87 shares were unchanged.

Metal shares were in demand. Hindustan Copper (up 3.85%), Jindal Steel & Power (up 2.53%), JSW Steel (up 2.31%), Vedanta (up 1.83%), Steel Authority of India (up 1.80%), NMDC (up 1.48%), Hindalco Industries (up 1.42%), National Aluminium Company (up 1.23%), Hindustan Zinc (up 1.18%) and Tata Steel (up 0.85%), edged higher. Bhushan Steel was down 0.45%.

Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for March 2018 delivery was currently down 0.47% at $3.2625 per pound on the COMEX.

Power generation stocks were in demand. Adani Power (up 1.85%), NHPC (up 1.26%), JSW Energy (up 1.17%), Jaiprakash Power Ventures (up 1.05%), Tata Power (up 0.70%), Torrent Power (up 0.68%), CESC (up 0.50%), Reliance Infrastructure (up 0.29%), NTPC (up 0.28%) and GMR Infrastructure (up 0.23%), edged higher. Reliance Power was down 2.28%.

State-run Coal India was up 0.18%. State-run Power Grid Corporation of India was up 0.80%.

Yash Papers jumped 10.61% after the company said that the commercial production of tableware unit (phase - 1) of the company started from 2 January 2018. The announcement was made after market hours yesterday, 2 January 2018.

Overseas, most Asian shares were trading higher, tracking positive cues from US market. Japanese market was shut.

US stocks jumped overnight, with major indexes rallying to record levels in a broad rally. The Dow Jones Industrial Average rose 0.4%. The S&P 500 rose 0.8%. The Nasdaq Composite Index gained 1.5%.

Today's Calls:

#Buy State Bank of India Ltd at around Rs.305, for short term targets of Rs.309--310. With the Indian Banking system bearing the brunt of huge NPAs, thanks to loan defaulters, the country's largest lender State Bank of India collected Rs 1,771 crore during April- November 2017 as penalty from customers who couldn't maintain a minimum monthly average  balance (MAB) in their accounts. The money thus collected as penalty charges is more than the bank’s July-September quarter net profit of Rs 1,581.55 crore and nearly half of the Rs 3,586 crore it earned as net profit April-September, reported The Indian Express. In October last year, the government of India had announced a Rs.2.1 lakh crore capital infusion plan for state-owned banks, of which Rs.1.35 lakh crore was to be raised through bonds.

#Those who are holding the shares of Dena Bank Ltd (Rs.25.50) can continue to hold with a SL of Rs.24.60. There was recent media report that the government is likely to immediately infuse about Rs 10,000 crore in six state-run lenders, including United Bank of India, Dena Bank and Bank of Maharashtra, over the next few weeks, a finance ministry official said. I am expecting the shares of PSB to rise, after the government of India passed the new Insolvency Code.

#Those who are holding the shares of Housing Development & Infrastructure Ltd can continue to do the same with a SL at Rs.61.40. I feel most of the investors have not understood the theory that HDIL has less debt and more land bank that Unitech Ltd or DLF Ltd, in the Mumbai Metropolitan Region. Moreover, its Face Value is Rs.10, unlike Rs.2 (in case of Unitech Ltd and DLF Ltd). Therefore, I feel it has a better chance of appreciation than the Unitech Ltd in the short term.

#The Shares of MBL Infrastructure Ltd (Rs.27) is preparing for the next round of upmove after

Photo: The Economic Times

changes took place in the Insolvency Code. Whether it is the promoter or a good strategic investor someone will soon take charge of the company. MBL Infrstructure Ltd has a good order book position -- only problem is the debt of Rs.1700 crore. The government of India, said last week, that loan defaulting promoters can take part in the bidding process provided they clear all the dues. The promoters of MBL Infrastructure Ltd has already expressed their desire to bring in Rs.120 crore and is in discussion with the lenders. I am sure soon, a positive outcome for the shareholders will come. Add the scrip in every market decline and keep holding.

#A Buy on Jet Airways Ltd was given at around Rs.Rs.522-534 in April last year (2017). The scrip made an intraday high of Rs.845 today, which is also its 8-year high. The investors could do well to book at least 85% of profits and wait for dips to re-enter.

#Those who are holding the shares of Reliance Infrastructure Ltd from around Rs.539 can book partial profit again  at Rs.572 and hold the rest with a SL at Rs.546. The next target for the scrip is Rs.593.

#Those who are holding the shares of Reliance Communications Ltd from Rs.12 onward, can book out complete profits at around Rs.31-32 and wait for the scrip to stabilize before thinking of fresh entry. I recommended the share of RCom to some of my BMA Wealth Creator Ltd's clients at above Rs.12.

#The long term investors who are still holding the shares of Orchid Pharma Ltd (Rs. 20.10), formerly Orchid Chemical and Pharmaceuticals Ltd, should book 15% of profits and hold the rest with a SL at Rs.17. 

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

Market Pulse

A bout of volatility was witnessed as key benchmark indices bounced back after hitting fresh intraday low in morning trade. At 11.13 IST, the barometer index, the S&P BSE Sensex, was seen trading at 33,843.01 up 30.26 points or 0.09%, while Nifty was seen at  10,447.95 up 12.40 points or 0.12%

Among secondary barometers, the BSE Mid-Cap index was down 0.65%. The BSE Small-Cap index was down 0.74%. Both these indices underperformed the Sensex.

The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,644 shares fell and 735 shares rose. A total of 91 shares were unchanged. Breadth was strong in early trade.

Metal shares declined. Hindustan Copper (down 2.35%), Steel Authority of India (down 2.21%), Jindal Steel & Power (down 2.18%), Bhushan Steel (down 2.16%), Vedanta (down 1.56%), JSW Steel (down 0.92%), Tata Steel (down 0.91%), National Aluminium Company (down 0.82%), Hindalco Industries (down 0.55%) and Hindustan Zinc (down 0.47%), edged lower. NMDC was up 0.71%.

Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for March 2018 delivery was currently down 0.64% at $3.2795 per pound on the COMEX.

Cement shares declined. ACC (down 0.41%), Ambuja Cements (down 0.13%) and UltraTech Cement (down 0.08%), edged lower.

Grasim Industries was down 0.93%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Motorcycle major Bajaj Auto gained 0.35% to Rs 3304.95 after total sales rose 30% to 2.92 lakh units in December 2017 over December 2016. Domestic sales rose 25% to 1.49 lakh units in December 2017 over December 2016. Exports rose 35% to 1.43 lakh units in December 2017 over December 2016. The announcement was made during market hours today, 2 January 2018.

Overseas, Asian shares were trading higher. Market in Japan is closed for holiday. US markets was shut yesterday, 1 January 2018, on account of New Year's Day.

Today's Calls:

#The market it seems will trade range bound till fresh triggers come. As long as the Nifty holds the 10400-10200 ranges the BULLS will not have to worry much. The broader market went in for small correction today, after a whirlwind rally during the last few weeks. India's fundamentals are moving towards better from worse and I believe, the rally will now be more seen in shares which have a story to tell, especially from those beaten down A and B groups. 

#Those who are holding the shares of Housing Development & Infrastructure Ltd (HDIL; CMP: Rs.62.50) can continue to add on declines due to the inherent fundamentals in the counter. The company has a HDIL has a market cap is only Rs.2,715.52 crore, as against its land holding of 200.47 Million Sq. Ft as of September 30, 2016. It boasts of being the Largest Land Bank Owner in Mumbai Metropolitan Region, which it can capitalize to cut its debt. JP Morgan noted HDIL’s balance sheet cost of land is at 50-70%  lower than market value. In November, 2017, there were media reports that the shareholders of HDIL had approved the issue of up to 2 crore warrants, convertible into equivalent number of equity Shares of Rs.10 each to Sarang Wadhawan. The issue is to be carried out in one or more tranches. The issue had been approved by the board of the company in an earlier meeting on November 14. The management intends to use the proceeds of the preferential issue of the warrants for long-term working capital purposes. The warrant issue increases the number of shares held to 45.4 crore, an increase of 4.6%. It expects margins of the company to be above 30% even under affordable housing price points.
In the November, 2017, another positive news came that Andhra Bank had withdrawn a plea against it in the National Company Law Tribunal. On October 30, Andhra Bank had filed an insolvency petition against city-based realtor on failure to repay Rs.55 crore invested by the bank in the HDIL's non-convertible debentures, as per media report. The company said that the aforementioned plea stands withdrawn as it has reached a settlement with the lender and has made part payment of its balance dues, it said in the BSE filing. I still hold the target of Rs.77-84-92-97-121  for the scrip. There could be some minor correction as the scrip of HDIL is a little overbought on the daily chart.

#Those who are holding the shares of Reliance Naval and Engineering Ltd (CMP: Rs.63; Intraday high: Rs.72.65) can book some profits and hold the rest with a SL at Rs.61.50. This scrip has given wonderful returns to  the short term shareholders. Reliance Naval and Engineering Ltd recommended to the Premium Members and also in this Free Blog closed with a gain of 32.28% yesterday.

#Most analysts expect the government to focus on increasing government expenditure on rural economy as well as introduce a measure to kick-start investment cycle in the economy. I have taken some shares of Genera Agri Corp Ltd (BSE Code: 590133; GENERAAGRI; Group XT) pivoted on this theory. I am expecting the scrip to touch Rs.35-41 in the short to medium. However, this is a high-risk-high-gain game. The stock has fallen from around Rs.220-plus in 2013-14 to the CMP of Rs.9.10 and therefore has a much chance of appreciation in this BULL MARKET RALLY.

#Those who are holding the shares of Suzlon Energy Ltd (Rs.15.70) from Rs.13.60, can continue to hold with a SL at Rs.15. This, the government is likely to give a push in the renewal energy sector. The scrip is likely to touch Rs.17-19, in the pre-budget rally.

#Those who are holding the shares of MBL Infrastructure Ltd (Rs.26.80), can continue to add on declines, as the government of India is likely to bring out a change in the existing Bankruptcy and Insolvancy act, which will make the promoters of the company eligible to bid. The medium term target for the scrip is Rs.110-plus. The stock has already risen from the recommended price of Rs.24.40. It will give you multibagger returns going forward. So, risk taking investors can accumulate the scrip on all declines.

#Unitech Ltd (Rs.11.15) made an intraday high of Rs.12.25 today. Those who are holding the shares of the company from Rs.5, can book complete profits and wait for a close above Rs.12.20, for fresh entry. This company like HDIL also has huge land bank scattered across India, unlike the former whose land bank is concentrated mostly in Mumbai Metropolitan Region.

#Buy the shares of Reliance Industries Ltd at around Rs.910-911, for intra-day targets of Rs.915-920. For the short term delivery based buying, the targets could be Rs.945-951. Oil prices posted their strongest opening to a year since 2014 on Tuesday, with crude rising to mid-2015 highs amid large anti-government rallies in Iran and ongoing supply cuts led by OPEC and Russia.

#Buy the shares of Punjab National Bank Ltd at around Rs.166-167, for short term target of Rs.177-180. According to the Economic Times, 2 January, 2018, North Block will soon announce a reforms road map for PSBs, tying performance parameters to funds the lenders would receive as part of recap plan. Moreover, putting branch rationalisation plan on fast track, Punjab National Bank has placed 300 branches under watch and asked them to either shape up within a year or face closure or merger.

#The government of India, especially the likes of Sanju Verma, who shifted to the BJP from the AAP (don't know her next destination, as this fickle lady keeps on changing her location...LOL), after trying her luck in other sectors too, like HDFC Bank, is seen to tom-tom about the all time high of the Indian bourses.
But with very little retail participation and not much improvement in the number of demat account holders, I don't think this in any case reflects "The Bharat of Villages and Towns".
It is pertinent to mention here that only around 2% of Indians hold Demat accounts and the Narendra Modi Government did very little during their tenure of more than 36 months to beef up the sentiments of Indian Capital Markets. 

I am increasing the subscription charge of my Premium Services to Rs.18,000 per year from 16th January, 2017. So, rush for further details on the same at: suman2005s@rediffmail.com or sumanm2007s@gmail.com.

~~with inputs from Capital Market - Live News

Sensex crosses 34,000-mark

26-Dec-17: Trading after a long weekend resumed on a buoyant note as key benchmark indices, led by Reliance Industries and Bharti Airtel, logged modest gains. The barometer index, the S&P BSE Sensex, rose 70.31 points or 0.21% to settle at 34,010.61. The Nifty 50 index gained 38.50 points or 0.37% to settle at 10,531.50. Most of the appreciation was collected in late trading. However, the boost was sufficient to take the Sensex beyond a record 34,000-point mark and the Nifty to cross the 10,500 milestone for the first time in their history. Key indices gained for the second straight day.

Stocks edged higher early in the session. Trading was characterized by a bout of volatility. Key indices traded on a flat note in morning trade after alternately moving above and below the flat line. Stocks slipped into the negative zone and hit fresh intraday low in mid morning. Indices continued to trade with small losses till afternoon trade but firmed up in late trade.

The Sensex rose 70.31 points or 0.21% to settle at 34,010.61, its record closing high. The index gained 121.58 points or 0.36% at the day's high of 34,061.88, its record high. The index fell 50.55 points or 0.15% at the day's low of 33,889.75.

The Nifty 50 index gained 38.50 points or 0.37% to settle at 10,531.50, its record closing high. The index gained 52.45 points or 0.5% at the day's high of 10,545.45, its record high. The index fell 15.05 points or 0.14% at the day's low of 10,477.95.

Among the sectoral indices on BSE, the S&P BSE Telecom index (up 2.28%), the S&P BSE Realty index (up 1.51%), the S&P BSE Metal index (up 1.23%), the S&P BSE Basic Materials index (up 0.92%), the S&P BSE Healthcare index (up 0.86%), the S&P BSE Industrials index (up 0.77%), the S&P BSE Energy index (up 0.56%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.5%), the S&P BSE Capital Goods index (up 0.45%), the S&P BSE Teck index (up 0.44%), the S&P BSE Oil & Gas index (up 0.42%) and the S&P BSE Auto index (up 0.26%), outperformed the Sensex.

The S&P BSE Consumer Durables index rose 0.21%, matching the Sensex's gain in percentage terms. The S&P BSE Utilities index (up 0.17%), the S&P BSE Bankex (up 0.11%), the S&P BSE FMCG index (up 0.07%), the S&P BSE IT index (up 0.06%) and the S&P BSE Finance index (up 0.03%), underperforming the Sensex. The S&P BSE Power index settled on a flat note.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.76%. The S&P BSE Small-Cap index gained 0.64%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was strong. On the BSE, 1,679 shares rose and 1,071 shares fell. A total of 221 shares were unchanged.

The total turnover on BSE amounted to Rs 4328.79 crore, lower than turnover of Rs 4833.05 crore registered during the previous trading session on Friday, 22 December 2017.

Index heavyweight Reliance Industries rose 1.03% to Rs 928.

Most metal and mining stocks rose as copper prices edged higher in the global commodities markets. NMDC (up 3.85%), JSW Steel (up 1.19%), National Aluminium Company (up 0.55%), Tata Steel (up 1.52%), Steel Authority of India (up 5.79%), Jindal Steel & Power (up 4.45%) and Vedanta (up 1.68%) edged higher. Hindustan Copper (down 0.64%), Hindustan Zinc (down 0.26%) and Hindalco Industries (down 0.64%) fell.

Copper edged higher in the global commodities market. High Grade Copper for March 2018 delivery was currently up 0.66% at $3.26 per pound on the COMEX.

Reliance Anil Dhirubhai Ambani (ADA) Group shares surged after witnessing recent volatility in stocks. Reliance Communications (RCom) (up 30.78%), Reliance Infrastructure (up 2.41%), Reliance Nippon Life Asset Management (up 1.16%), Reliance Capital (up 7.02%), Reliance Home Finance (up 0.45%), Reliance Naval and Engineering (up 5.63%) and Reliance Power (up 3.85%) gained.

Shares of most public sector banks declined. Syndicate Bank (down 3.08%), Punjab National Bank (down 0.94%), Allahabad Bank (down 1.04%), Bank of Baroda (down 0.8%), State Bank of India (SBI) (down 0.94%), Union Bank of India (down 0.17%), and United Bank of India (down 0.29%) edged lower. Corporation Bank (up 1.13%), Canara Bank (up 0.55%), and Bank of India (up 0.38%) gained.

Shares of private sector banks gained. Axis Bank (up 0.15%), ICICI Bank (up 0.35%), Kotak Mahindra Bank (up 0.66%), Federal Bank (up 1.81%), and IndusInd Bank (up 0.8%) edged higher. HDFC Bank declined 0.62%.

Yes Bank rose 1.74% after the bank said that it has on 22 December 2017, established a Medium Term Note Programme (MTN Programme) for an amount of $1 billion, in order to enable the bank to issue debt instruments in the international capital markets, to eligible investors, from time to time, in one or more tranches and/or series. The establishment of the MTN Programme is only an enabling step and presently, no instruments are being issued by the bank. The announcement was made on Saturday, 23 December 2017.

Dr. Reddy's Laboratories rose 1.17% after the company announced that it has launched Melphalan Hydrochloride for Injection, a therapeutic equivalent generic version of Alkeran (melphalan hydrochloride) for Injection in the United States market approved by the US Food and Drug Administration (USFDA).

The Alkeran brand and generic had US sales of approximately $107 million MAT for the most recent twelve months ending in October 2017 according to IMS Health. The announcement was made during market hours today, 26 December 2017.

Overseas, European markets remained shut for a holiday. Asian stocks were mixed in trading thinned by year-end holidays as several regional markets re-opened after the Christmas break. Hong Kong, Australia and New Zealand markets remain closed today, 26 December 2017. US markets remained shut yesterday, 25 December 2017 on account of Christmas.

In Japan, the nationwide core consumer price index (CPI), which includes oil goods but excludes volatile fresh food prices, rose 0.9% in November from a year earlier, government data showed today, 26 December 2017. The pace of price growth was just ahead of October's 0.8%.

~~ Powered by Capital Market - Live News..

Market Pulse

The stock market continued to trade with small gains in afternoon trade. The BSE Sensex is now trading at 33,878.69 up 41.95 points or  0.12%, while the NSE Nifty is now seen at 10,473.55 up 10.35 points or 0.10%.

The market swung between gains and losses near the flat line in early trade. The Sensex and Nifty, both, hit record high at the onset of the session. Stocks soon slipped into the red and traded with small losses in morning trade. Indices turned positive in mid-morning trade and traded with small gains so far.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.47%. The S&P BSE Small-Cap index gained 1%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was strong. On the BSE, 1,652 shares rose and 893 shares fell. A total of 174 shares were unchanged.

IT stocks were mixed. Wipro (up 0.79%), Infosys (up 0.74%) and HCL Technologies (up 0.29%) gained. Persistent Systems (down 0.69%), Tech Mahindra (down 0.32%) and TCS (down 0.26%) dropped.

Metal and mining stocks nudged higher. National Aluminium Company (up 4.39%), Jindal Steel & Power (up 3.81%), Steel Authority of India (up 1.98%), Hindalco Industries (up 1.87%), Hindustan Zinc (up 0.61%), Hindustan Copper (up 0.49%), JSW Steel (up 0.53%) and Vedanta (up 0.17%) gained. Tata Steel (down 1.06%) and NMDC (down 0.26%) edged lower.

Strides Shasun rose 2.7% at Rs 816.75 after the company said that its wholly owned Singapore subsidiary has entered into definitive agreements with Trinity Pharma, South Africa (Trinity) for acquisition of controlling stake in Trinity. Under the terms of the agreement, Strides Pharma Asia, Singapore will acquire 55% stake in Trinity for a cash consideration of South African Rand 55 million (approximately Rs 27.50 crore).

The current management will stay as minority partner and will continue to run the business under the supervision of Strides. The transaction is subject to customary closing conditions including approval from the South African regulatory authority, Transaction Regulation Panel and expected to close on or before 5 January 2018. The announcement was made during trading hours today, 20 December 2017.

Meanwhile, the Companies (Amendment) Bill, 2017 which seeks to bring about major changes in the Companies Act, 2013, was passed by the Rajya Sabha yesterday, 19 December 2017 by a voice vote. The bill, which was adopted by the Lok Sabha in July, will now have to receive the assent of the President to become law. The amendment seeks to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve ease of doing business in the country.

Overseas, Asian stocks dropped after Senate passed Republican tax bill in 51-48 vote sending the tax cut package back to the House of Representatives for a final vote later in the day.

US stocks ended with modest losses yesterday, 19 December 2017, pulling back from all-time highs. Stocks remained lower as the House of Representatives, as expected, passed tax legislation that would slash corporate rates but will have to vote again today because the current draft doesn't comply with Senate rules.

Today's Calls:

#MBL Infrastructure Ltd today hit the Buyer Freeze in the morning trade, at Rs.25.45 in the NSE. I am expecting itss price to go above Rs.110, within a few months.  Hence keep adding as much as you can in all intraday dips. This is a multibagger stock from my arsenal and hence don't miss it.

#Suzlon Energy Ltd was recommended a buy at around Rs.13.60 in this blog, a couple of days back today toched Rs.14.10. You should keep a stop loss at Rs.13.50 and keep holding or accumulating in intra-day dips. 

#The stock of Reliance Communications Ltd which was recommended only a couple of days back to some of my clients at around Rs.12, today touched Rs.18,45 in the NSE, up more than 37% from yesterday's closing pricxe. I am suggesting all to book some profits and again enter at appropriate time. This is what happens if you join my Premium Service -- you get Jackpots.

#The stock of Orchid Pharma Ltd (formerly Orchid Chemicals and Fertilizers Ltd) made an intraday high of Rs.19.85 today. The non-risk taking investors should exit the scrip near the buy price. However, those who wants to apply high-risk-high-gain strategy can hold the counter with a strict SL of Rs.18.60. The short term targets could be Rs.22-23.

#I am looking for someone or a business concern who can invest around Rs.5-10 lakhs (or more if possible) in a well Researched Scrip. We would hold it for one year (no trading in the account only pure delivery based holding - this minimizes lot of risks) or less or more, depending upon the prevailing situations. The profits could be shared in the ratio of 75:25 between you and my firm. The returns could be mind-boggling and the risks will be minimum as there will be very little trading and exit will be done at stop losses; further minimizing the risks associated with too much volatility with the mid and small caps. 
Say if we get Rs.50 lakhs on an investment of Rs.10 lakhs then the profit to be shared will be Rs.10 lakhs only. So, your total investable capital becomes Rs.40 lakhs, and that too with minimum (read almost zero) trading. This money could be further invested in another strong delivery based counter, and the process could continue. 
Those who have lost money earlier can try this new formula with fresh funds at their disposals. This new method hereto  is going fine with most of my new clients. If anyone is interested please do send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com. 

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

Market Pulse

The stock market extended intraday slide in mid-morning trade. After a positive start, key indices traded within a narrow range around the flat line till morning trade. Investors digested the US Federal Reserve's decision of raising interest rates for the third time this year, underlining the confidence that the United States remains on solid footing.

Higher interest rates in the US may drain liquidity from the emerging markets, including India, and redirect it to developed economies.

The S&P BSE Mid-Cap index fell 0.43%. The S&P BSE Small-Cap index declined 0.65%. Both the indices underperformed the Sensex.

The breadth, indicating the overall health of the market, was weak. On the BSE, 1,448 shares declined and 831 shares rose. A total of 116 shares were unchanged.

Metal and mining stocks declined. SAIL (down 2.92%), Jindal Steel & Power (down 0.9%), NMDC (down 0.58%), Vedanta (down 0.58%), Hindustan Copper (down 0.49%), JSW Steel (down 0.25%) and Hindustan Zinc (down 0.12%) edged lower. Nalco (up 0.2%) and Hindalco Industries (up 0.02%) edged higher.

Tata Steel fell 0.54%. The company said that a meeting of its board of directors will be held on 18 December 2017 and will conclude on 19 December 2017, to consider a proposal for raising of funds by issue of equity shares or other securities including through qualified institutions placement, rights issue, preferential issue or through any other permissible mode or a combination thereof, subject to such regulatory/statutory approvals as may be required, including approval of shareholders of the company, if applicable. The announcement was made after market hours yesterday, 13 December 2017.

On the macro front, the government will announce inflation data based on wholesale price index (WPI) for November at 12:00 IST today, 14 December 2017. Wholesale prices rose 3.59% year-on-year in October, following a 2.6% increase in September.

Among other news, the second phase of polling in Gujarat is underway today, 14 December 2017 in 93 assembly constituencies. Counting of votes will take place on 18 December 2017. Gujarat recorded a polling of 68% in the first phase of assembly elections for 89 assembly constituencies held on 9 December 2017. The Gujarat assembly has 182 seats.

Overseas, Asian stocks were mixed. US stocks rose yesterday, 13 December 2017, with the Dow posting a record closing, after the Federal Reserve hiked interest rates. Investors also digested news of Congressional leaders reaching a tentative agreement on a tax overhaul plan.

The Fed raised interest rates by a quarter point after the conclusion of its two-day policy meeting yesterday, 13 December 2017, in a move that was widely expected by markets. That increased the central bank's target range to between 1.25% and 1.5%. The Fed also raised its GDP forecast from 2.1% to 2.5%. Its inflation forecast was raised from 1.6% to 1.7%.

In Europe, a meeting of the European Central Bank (ECB) is scheduled today, 14 December 2017, to announce its interest rate decision. The ECB held its benchmark refinancing rate at 0% on 26 October, as widely expected, and decided to reduce its quantitative easing programme to a monthly pace of €30 billion from January with the option of extending it in September 2018.

Today's Calls:

#In view of the uncertainty regarding Gujarat elections, I suggest you to EXIT all the Gujarat based companies, including my earlier recommended Suzlon Energy Ltd at the CMP of around Rs.13.45.

#The Stock of HDIL is looking good at the CMP of Rs.52.80. You can buy for the short term targets of Rs.55-56, keeping a Strict SL of Rs.51. HDIL has recently sought shareholders approval to issue up to 2 crore warrants on preferential basis to promoter Sarang Wadhawan in order to infuse long term capital into the company. The proceeds of the preferential issue of warrants will be utilised by the company to consolidate and infuse long term working capital.

#Those who are holding the shares of MBL Infrastructure Ltd (Rs.23.40) can continue to add on every decline, as the  company is almost through with the NCLT proceedings; according to some unconfirmed sources. It has a healthy  order book of around Rs.7000 crore against a debt of Rs.1700 crore. The promoter is  likely to bring in Rs.120 crore for an amicable settlement with the lenders. I am looking for targets of Rs.100 - plus (one hundred) in the next 6 to 9 months time frame. However, put a SL at Rs.21.60, if the the things do not proceed as expected. This could be the stock of FY19. Surprisingly, the stock of MBL Infrastructure Ltd has been placed in the T-group, when there is no volume in the counter. Hope the stock exchanges would soon review their decision, considering the current positive developments, surrounding the company.

~~ with inputs from Capital Market - Live New

Today's Call

1. Get of Tata Motors Ltd (Rs.462.50) as the scrip could slip to Rs.456-450. However, if it sustains above Rs.463, you can again enter.

2. The correction in Indian markets, may not be too deep, as it looks now. Buy Vedanta Ltd at Rs.252.10, T:Rs.261, SL: Rs.248. Analysts at JP Morgan remain overweight on Hindalco and Vedanta even though the stocks have materially outperformed the broader indexes over the last 12 months as the underlying commodity environment remains supportive and should allow balance sheets to de-lever.

3. Buy Inox Wind Ltd at Rs.169.30-170, T: Rs.210, SL: Rs.162. In a roughly INR-10-billion (USD 149m/EUR 141m) deal Leap Green Energy Pvt Ltd is to acquire the downstream wind power business of India's Inox Group, the Economic Times (ET) said, citing informed sources. An announcement of the acquisition agreement is coming, the sources have said.
India-based Leap Green, majority-owned by JPMorgan Chase & Co (NYSE:JPM), has about 450 MW of wind power capacity, while Inox Renewables is an independent power producer (IPP) with nearly 300 MW of wind farms in Rajasthan and Maharashtra, according to the report.



Buy Inox Wind; target of Rs 298: HDFC Securities. HDFC Securities' research report on Inox Wind

Inox Wind (IWL) reported yet another weak quarter as execution got impacted due to demonetisation. 200MW of WTGs were manufactured but could not be commissioned, which led to miss in estimates for the quarter. With improvement in execution, the mgmt expects 4QFY17E to be a disproportionately strong quarter.

Outlook
Our estimates factor in flattish volumes of 3.5GW/1GW for the industry/IWL. Still IWL would generate annual FCF of 5bn going ahead. Given a history of volatile quarterly performance we cut our target P/E multiple to 12x (earlier 15x) to arrive at Dec-18 TP of Rs 298/sh. Reiterate BUY.

DO YOU KNOW?

Photo: The Hindu

The euphoria which fueled a Market Rally back in 2013-2014 on hope that Prime Minster Narendra Modi would boost growth, revive the investment cycle and prop up earnings growth, helped push earnings multiples for some of the mid and small cap stocks to reach record highs. 

However, some of these shares lost steam slowly in the past 12 months. But they are still good buying opportunity on dips, feel experts. Investors have to be selective before putting their hard-earned money in these stocks. 

One such stock is Reliance Communications Ltd, which looks to cut down the debts by 75% in the next few months. 

"Integration of MTS business with RCom is on track. We expect to complete the integration in August. We expect to make announcement with respect to Aircel merger anytime in June. Once we complete the Aircel transaction, we will go for the tower deal," RCom CEO for consumer business Gurdeep Singh said during a conference call on Tuesday.

"With completion of these deals, we expect RCom's debt to reduce by 75 per cent."

RCom's net debt at the end of March 2016 stood at Rs 41,362.1 crore.

RCom and Aircel have extended discussion period for a possible merger of the two till June 22. Mr Singh said discussions are in advanced stages.

Reliance Communications Ltd (R-Com) and Aircel Ltd are likely to complete the merger of their wireless operations by the end of the month, a top Reliance Group official said last week. Talks between RCom and Aircel, if successful, would lead to a combined entity holding 19.3% of the total spectrum allocated to the industry - the highest by an entity. .

On a lighter note: Outlook's Essar leaks show who controls the vital pillars of Indian democracy.. 

The two brothers, Mukesh and Anil (Ambani) have already tied up in the telecom space.

But most of the investors are now confused, because some of the rating agencies have still not changed their negative outlook on Reliance Communications Ltd, even though it has taken pro-active steps to push-up its fundamentals. 

And as usual some financial analysts who fail to understand the potential of this deal, continue to peddle their "Avoid Jargon". This has led to many Investors losing patience and selling the scrip of Reliance Communications Ltd at a distressed price, like they did in case of Vedanta Ltd (Rs.122.55), Hindalco Ltd (Rs.118.80), BHEL (Rs122.35), JSW Energy Ltd (Rs.84.10) and so on; only to repent later. 

Most Investors have a habit of believing more or drinking a bottle of cold drink more when they see suited-booted persons sitting in TV-channels and shooting their trading ideas. This is the irony!! 

Meanwhile, after R-Com and Aircel had begun discussions about six months ago, the former's shares have fallen by more 45% since then. 

This again gives the investors to zoom-in, in this shares, especially when the Telecom Commission has lowered the annual spectrum usage fee for telcos to 3% of revenue for all bands in the upcoming auction slated for July, and brought the 4G airwaves purchased in 2010 under the ambit of a formula to calculate the overall fee for each carrier. 

The Business Today writes, on 3 July, 2016 edition: 

It is a one-stop solution the government seems to have found to preclude allegations of corruption in the allocation of natural resources - hold an auction. From oil and gas blocks to coal blocks to spectrum bandwidth, auctions have become the preferred mode of sale to both ensure transparency and generate substantial revenue. The civil aviation ministry even considered auctioning unused and future bilateral rights (rights to fly to foreign destinations negotiated with destination countries), though the proposal was eventually stalled due to internal differences over its advisability. The reverse auction, where the government is the buyer of goods or services, has also become an effective means of driving down prices, especially in the case of solar tariffs.

Last year alone, a total of 55 coal mines were auctioned over three rounds, of which 28 went to private companies and 27 to Central and state PSUs. 3G and broadband wireless spectrum was auctioned too, earning the government over Rs.1.1 lakh crore. This year, there are expectations of another Rs 70,000 crore from the auction of 67 small oil and gas fields, which began in late May. (So far, under the New Exploration Licensing Policy or NELP, formulated in 1998, over 250 hydrocarbon blocks have been auctioned across nine rounds.)

Anyway, in the latest move to help banks deal with their stressed assets, RBI has issued guidelines to help banks identify opportunities to convert up to half of their non-performing debt positions in indebted companies into equity, should the borrowers meet certain criteria that would determine if their debt is sustainable in the long-term. Under RBI's ‘Scheme for Sustainable Structuring of Stressed Assets,’ the conversion into equity or quasi-equity instruments could provide an incentive to lenders to share in the profits should the indebted company turn around, according to an RBI note.

So what types of bad debt situations are eligible for this provision? Stressed debt related to all commercially operational entities that owe more than Rs.500 crore to lenders, including interest, would qualify. Additionally, their debt should also meet RBI’s test of sustainability which includes.

Once the sustainable debt has been worked out, the banks and borrowing companies can evaluate various recapitalisation scenarios with the help of an external agency. The equity portion of the deal will have to be "marked to market," or deemed at fair value, according to the RBI note.

Banks would also have to follow certain terms and conditions that will govern the sustainable debt portion -- such as one that would prohibit them from extending the repayment schedule of the loans, or otherwise amending loan terms, according to the note. Other caveats and conditions can be found here.

To be sure, banks have had the option to convert their debt into equity in the past, but the procedures have been somewhat onerous in India that would allow banks to take “haircuts,” where a lender agrees to a loan repayment less than what is owed.


The latest move is good news for banks as they have another option and framework at hand to resolve their bad debt mess, according to Srikanth Vadlamani, a senior analyst with Moody’s Investors Service. 

Thus, Dr.Raghuram Rajan's exit, could bring in a rally in the shares of companies, who have been sitting on the piles of debts, because it could rekindle the hopes of a massive interest rate cuts; if the INR remains stable. This gives legs to the shares like Reliance Communications Ltd (Rs.47.20). 

I will recommend another, a very well known share tomorrow in this blog (anytime after 10 am in the morning), which could get benefited both by Dr.Rajan's exit and also due to RBI's latest move, regarding restructuring of the debt portfolios. 

Therefore, buy the shares of Reliance Communications Ltd at the CMP of Rs.47.20, for a target of Rs.72-plus in some months. Just buy and forget!!