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Yes Bank Ltd : Sell CMP:  Rs.218.70 Targets: Rs.193/172 Photo : The Economic Times I have given a sell call on the shares of Yes Bank Ltd which is trading at Rs.218.70. Though recently the Reserve Bank of India hadn’t found any deviation in its reporting of bad loans (FY18 NPA divergence issue) and the growth in net interest income (the difference between interest income and expenses) was a healthy 41.2% aided by advances growth of over 42% and stability in interest margin at 3.3%; I find that there are still some issues which needs to be addressed before taking fresh exposures at the current market price Rationale :   #Gross NPA for the Q3FY19 rose to 2.10% from 1.60% in September quarter and 1.72% in December quarter of last year. There was a significant deterioration in asset quality in the quarter under review, thanks to a large slippage on account of IL&FS. Of the total slippage of Rs.2,297 crore – around Rs.1,913 crore is believed to be on acco...

Market Is Running Ahead of Fundamentals:   Nifty Should Correct Below 9000 Photo : 123RF It is surprising that Indian markets are moving up, when we have a dismal financial situation, with unofficial employments report showing to be 45 years low and rural unemployment touching 18%. Besides due to lack of funds in the schemes like MNREGA, the rural economy has already taken a hit.  Moreover, according to a report published in Deccan Herald, 15 December, '18, India’s foreign direct investments (FDI) growth has slowed to a minuscule 1.23% in 2018 from a high of 20.16% in 2014 when the BJP-led government took over at the Centre. This proves the fruitlessness of Narendra Modi's numerous foreign trips, with public funds. Besides, with abnormally low inflation of 2.18%, the growth of 7.2% looks like a manipulated figure. It is because it is always seen that growth is accompanied by inflation, as spending takes a major push. When there is already demand destruction, p...

Market Mantra Buy the Shares of Indo Count Industries Ltd at the CMP of Rs.55.45 for short and medium-term targets of Rs.91/96/127/141. SL: Rs.56. It is likely to give decent returns over a period, as INR depreciation Vs USD is going to have a good effect on its balance sheet. The company makes, bed sheets, pillow covers, etc which are sold in the United States through retailers such as Wal-Mart and Bed Bath & Beyond. While the majority (65%) of Indo Count Industries Ltd’s business comes from retailers in the US, it also exports to 54 countries and has taken baby steps in selling products under its own brand -- a bold step for a company that was set up only in 1991 as a yarn maker and entered the home textile business in 2006. A strong US dollar has already the input costs for the US manufacturers -- this is likely to boost US imports in sectors such as textiles, steel, aluminium etc. However, Trump administration recently imposed strong Tariffs on steel and aluminum im...

Winning Strokes : Think Different Key equity benchmarks extended gains for sixth session in a row led by gains in ICICI Bank, Larsen & Toubro and Reliance Industries. Trading was volatile as indices bounced back in last hour of trade after hovering in negative terrain for most part of the session. The Nifty managed to close above 10,900 mark. Slide in crude oil prices and firmness in rupee boosted investors sentiment. Global stocks were negative in the face of slowing economic growth and rising political uncertainty while investors looked to the US Federal Reserve monetary policy decision due on Wednesday. The Sensex rose 77.01 points or 0.21% to settle at 36,347.08, its highest closing level since 1 October 2018. The index rose 105.31 points, or 0.29% at the day's high of 36,375.38. The index fell 223.55 points, or 0.62% at the day's low of 36,046.52. The Nifty 50 index rose 20.35 points or 0.19% to settle at 10,908.70, its highest closing level since 1 O...

Market Mantra Short Nifty corresponding to the Spot Rate of 10,791.55 for targets of 10697/10672. After all those drama in the election is over, the markets may look for some breathing space for the next level of upmove. However, stock specific activities will continue. Buying may now shift slowly to the small and mid cap counters.The rates of Nifty mentioned are all Spot levels. You need to do the necessary shorting and find targets in F&O space, corresponding to the spot levels.  China reported economic data that missed expectations. China on Friday reported industrial output and retail sales growth for the month of November. Industrial output in November grew 5.4% from a year ago. That figure was 5.9% in October. Retail sales rose 8.1%, down from 8.6% in October. Fixed asset investment rose 5.9% from January to November. It rose 5.7% from January to October. This is already having a negative impact on the Asian markets. Buy TV Vision Ltd at around Rs.4.30 for shor...

A firm opening on the cards Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 40 points at the opening bell. On the political front, the outcomes of the five state elections will likely set the tone for the general elections next year. Voting in Rajasthan and Telangana will take place today, 7 December 2018 and the counting of votes in all the states will be done on 11 December 2018. Assembly elections in Madhya Pradesh and Mizoram were held on 28 November 2018. The election in Chhattisgarh Assembly was held in two phases on 12 and 20 November 2018. Overseas, Asian stocks were trading mixed as investors grappled with shifting indications on US-China trade talks and prospects for a pause in Federal Reserve tightening. US stocks closed mostly lower Thursday after a dramatic session that saw the Dow Jones Industrial Average plunge more than 700 points at one point on fears that the arrest of a Huawei executive would rei...

Market Mantra : Stocks May Open a Tad Lower Photo : Kalinga TV Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 6 points at the opening bell. Overseas, most Asian stocks were trading lower, signaling fading investor applause for the US-China trade truce. US stocks rallied yesterday, 3 December 2018 after the US and China declared a truce in their trade war. Back home, key equity benchmarks extended gains for sixth straight trading session yesterday, 3 December 2018. However, the trading was volatile as gains triggered by strong global cues were almost offset by lower-than-expected domestic GDP data. The Sensex rose 46.70 points or 0.13% to settle at 36,241, its highest closing level since 1 October 2018. The trading activity on that day showed that the foreign portfolio investors (FPIs) bought shares worth a net Rs 293.12 crore yesterday, 3 December 2018, as per provisional data released by the stock exchanges. Do...

Winning Strokes : Think Different Domestic shares inched up, extending gains for fifth day in a row, supported by recent weakness in crude oil prices and strength in local currency. Increase in fund flows from foreign portfolio investors also boosted sentiment. The benchmark indices, which opened on a strong note, settled with small gains after briefly slipping into negative terrain in afternoon trade. Investors took some profits off the table ahead of a highly anticipated meeting between President Donald Trump and his Chinese counterpart Xi Jinping at the G-20 summit in Argentina, which many hope will help ease escalating trade tensions between the two countries. The Sensex rose 23.89 points or 0.07% to settle at 36,194.30, its highest closing level since 1 October 2018. The index rose 218.81 points, or 0.60% at the day's high of 36,389.22. The index fell 87.44 points, or 0.24% at the day's low of 36,082.97. The Nifty 50 index rose 18.05 points or 0.17% to se...

Winning Strokes : Think Different Domestic stocks settled with modest gains following recent weakness in crude oil prices. The barometer index, the S&P BSE Sensex, rose 118.55 points or 0.34% to settle at 35,260.54. The Nifty 50 index rose 40.40 points or 0.38% to settle at 10,616.70. Among secondary barometers, the BSE Mid-Cap index rose 0.74% to 14,992.48. The BSE Small-Cap index was flat at 14,548.04. The market breadth, indicating the overall health of the market, was negative. On BSE, 1099 shares rose and 1497 shares fell. A total of 139 shares were unchanged. Yes Bank lost 7.42%. The bank informed that Ashok Chawla, non-executive independent part-time chairman, has tendered his resignation from the Bank's Board, with immediate effect, mentioning that during the current transition period, the Bank would need a Chairman who could devote more time and attention. The bank shall in due course announce the appointment of a Chairman, post RBI's approval. Th...

Market Mantra After hovering near flat line in morning trade, key equity indices bounced back in mid-morning trade. At 12:10 IST, the barometer index, the S&P BSE Sensex, was trading at 35,300 up 158.90 points while Nifty was seen at 10,6184 up 2.65 points.  Most metal and FMCG shares advanced. Among secondary barometers, the BSE Mid-Cap index was up 0.17%. The BSE Small-Cap index was down 0.03%. The market breadth, indicating the overall health of the market, was negative. On BSE, 931 shares rose and 1249 shares fell. A total of 109 shares were unchanged. Alkem Laboratories rose 1.23% after the company said that USFDA has concluded inspection at its Taloja facility. The announcement was made after market hours yesterday, 14 November 2018. Alkem Laboratories said that USFDA had conducted an inspection at the company's Bioequivalence facility located at Taloja, Maharashtra from 8 November 2018 to 14 November 2018. At the end of the inspection, no Form 483 was...

Market Mantra The market extended gains and hit fresh intraday high in mid-afternoon trade, backed by positive opening in the European market. At 15:15 IST, the barometer index, the S&P BSE Sensex, was trading at 35,148.46 up 335.47 points or 0.96% while Nifty was seen at 10,584.50 up 102.30 points or 0.98%. The Nifty 50 index was up 91.15 points or 0.87% at 10,573.35. Gains were supported by firmness in oil sector stocks. The Sensex regained 35,000 mark in mid-afternoon trade. Among secondary barometers, the BSE Mid-Cap index was up 0.09%. The BSE Small-Cap index was down 0.07%. Both these indices underperformed the Sensex. The market breadth, indicating the overall health of the market, was negative. On BSE, 1214 shares rose and 1292 shares fell. A total of 127 shares were unchanged. On the economic front, India's industrial production grew 4.5% in September compared with the upward revised 4.7% in August, data released by the statistics office showed. A...

Crude Oil : Where the Prices can go ? Photo : Market Watch What the heck happened to oil prices? But more significantly, what does it mean for the broader stock market and the global economy? That is what has some Wall Street investors scratching their noggins, as crude futures and U.S. stocks staged a tandem tumble this week, just when investors thought the worst was over following a bruising October for risk assets.   The near WTI futures price is down 23% since peaking on October 3rd as traders front ran the Iranian oil sanctions, which went in to place this week.  Fearing spiking oil prices, the U.S. granted waivers to eight of Iran’s largest buyers of crude – China, India, South Korea, Japan, Italy, Greece, Taiwan, and Turkey. According to a report in the Economic Times , The oil bears are back, and they’re looking at OPEC before making their next move. While money managers slashed bets on rising West Texas Intermediate crude prices for a ninth week in...