Pakistan’s rupee and stocks fell, extending the week’s losses, after the nation secured a bailout from the International Monetary Fund.
The South Asian nation is expected to adopt tough measures as part of its deal with the IMF, which investors speculate may include further currency devaluation. It secured its 13th IMF bailout since the late 1980s for about $6 billion earlier this week after a six-month delay.
In terms of the wave structure, the Nifty has formed third leg i.e. Wave C of a minor degree pullback. So as per the structure, it has done with the pullback required to attract the next round of selling. Hence the bounce is an opportunity to start building fresh short positions. The 11,400-11,450 zone is the likely area for the bears to take charge once again
- Gaurav Ratnaparkhi, Sharekhan
During the session, Nifty broke above its brief resistance of 11,300. The price action and buy triggers from a few near-term oscillators point to a rally towards 11,480-11,550
- Arun Kumar, Reliance Securities
Nifty formed a big bullish candle with a reversal of the Harami formation on the daily scale as sustained buying interest was seen on Friday. The index now needs to hold above the 11,350 level to extend gains towards 11,500 and then 11,550. On the downside, supports are seen at 11,250 and then 11,180
Next week is going to be the most happening of the year wherein all eyes would be glued to not ‘stock quotes’ but ‘vote quotes’. Speculation is that NDA is expected to gain upwards of 300 seats and if it does the best scenario is that markets will test 11,800 and thereafter correct. However, a negative surprise would cause a one-time massive knee-jerk reaction and markets can tank upto 10,500-10,000 levels. It would be profitable for traders to take contra bets on either side and investors should ideally be silent spectators and let T20-20 pass-by while at the same time, if panic sets in, keep a shopping list ready with companies from sectors such as financialization, consumption and FMCG which are reasonably priced
Market will react to exit polls in early trade on Monday and that could set the tone for the rest of the day as well. Besides, prevailing negotiations between the US and China would also be on the traders’ radar. In short, we expect volatility to inch higher. Traders should prefer hedged trades and avoid overtrading
- Jayant Manglik, President - Retail Distribution, Religare Broking
Sensex surges 537 pts, Nifty reclaims 11,400; what fuelled this rally?
Market has shown tremendous strength one day before the long-awaited exit polls, despite the ongoing ambiguity in the US-China trade talks. With the last phase of elections scheduled for Sunday, the all-round buying across the sectors reflects market's anticipation that exit polls may indicate formation of a stable government
- Jagannadham Thunuguntla, Senior VP, Centrum Broking
Despite global volatility, domestic market extended gains on continued accumulation in blue chips by domestic investors and short covering ahead of exit polls on Sunday. Auto and FMCG outperformed in expectation of ease in interest rate from the RBI and prospects of near-normal monsoon. Having said that, investors remained focused on final election results for the short-term direction
- Vinod Nair, Head of Research, Geojit Financial Services
CLOSING BELL: Sensex soars 537 pts ahead of exit polls; Nifty above 11,400; Bajaj Fin surges 6%, HDFC twins rally up to 3%
Pharma major Dr Reddy's Laboratories reported a 44 per cent year-on-year (YoY) rise in profit at Rs 434.40 crore in March quarter compared with Rs 302.20 crore in the same period last year. On a sequential basis, profit was down 10 per cent.
Sales for the quarter rose 14 per cent to Rs 4,016.60 crore from Rs 3,534.90 crore in the year-ago period.
Ebitda margin for the quarter stood at 22 per cent against 22.5 per cent in December quarter and 16.3 per cent in the corresponding quarter last year.
Bajaj Auto reported better-than-expected financial results for the quarter ended March 31.
The two-wheeler maker posted 20.90 per cent year-on-year (YoY) rise in standalone profit at Rs 1,305.59 crore over Rs 1,079.87 crore in the same period last year.
Many investors are fearing that there could be more skeletons in the closet of Yes Bank, due to which RBI has taken this action. In our view, while there are problems in the bank, and balance sheet looks stressed with the capital position being weak, the move by RBI could be a precautionary move as Yes Bank is much larger than banks like Dhanlaxmi or LVB and any failure here could have serious systemic implications.
Yes Bank, Tata Motors and Dilip Buildcon, among others, had a stellar start to 2019, but over the past one month they have been battered badly.
Not only has the rally in these stocks halted, there are concerns if they can see a recovery anytime soon. Brokerages say a few of these stocks are not yet looking like value buys even after the sharp fall.
While Dalal Street has built in a possible return of the Modi government in stock prices, a few market veterans have expressed the view that coalition governments are actually a better idea for progress on the policy front.
They say a coalition regime actually helps keep checks and balances in place, which works better for the economy. Data showed the domestic equity market has delivered robust returns under coalition governments previously.
RBI recognizes that NBFCs play a crucial role in the financial services space and by extending to NBFCs what until now was a requirement for banks the regulator has firmly set the expectations for this sector. Magma Fincorp has been on the path of enhancing its enterprise-wide risk management since 2015. It has a robust and independent risk management framework under the aegis of a CRO who reports to the Risk Management Committee of the Board. The framework is governed by the Risk Appetite Statement approved by the Board covering the entire spectrum including credit risk, market risk, compliance risk, operational risk, reputational risk and financial risk.
- Deepak Patkar, Chief Risk Officer, Magma Fincorp
Shilpa Medicare gets USFDA nod for cancer drug
Price as on 17 May, 2019 01:29 PM, Click on company names for their live prices.
The Pakistani rupee continued to fall to record lows on Friday, after the government agreed in principle to a $6 billion loan from the International Monetary Fund that's expected to set tough conditions on Prime Minister Imran Khan's administration.
Japan's Nikkei share average jumped on Friday, led by Sony and technology shares, but ended the week with a slight loss amid concerns about rising US-China trade tensions.
The Nikkei rose 0.89 per cent to 21,251 points. For the week, it was down 0.44 percent, the second straight week of losses. The broader Topix rose 1.09 per cent to 1,554.25, eking out weekly gain of 0.3 per cent.
Shares of PNB Housing Finance (PNBHFL) declined as much as 5.5 per cent to Rs 716.95 apiece, logging their worst intraday loss since April 30.
Promoter PNB's agreement with General Atlantic Group to sell part of PNBHFL for Rs 926 crore, or $131.92 million, was terminated on Thursday. Failure to receive regulatory approvals was cited as the reason for this termination. Punjab National Bank will continue as the sole promoter of PNBHFL.
Ujjivan Small Finance Bank appoints Nitin Chugh as MD, CEO from Dec 1
Price as on 17 May, 2019 12:05 PM, Click on company names for their live prices.
JK Tyre sees worst day in nearly 5-month on Q4 profit slump
Shares of JK Tyre and Industries fell as much as 5.6 per cent to Rs 74.9, posting their biggest intraday loss since December 2018. The tyre manufacturer's March-quarter consolidated profit declined around 80 per cent, pulled down by higher expenses. Total expenses for the quarter rose 24 per cent to Rs 2,670 crore rupees.
Hindalco slips to 3-month low on weak March quarter numbers
Shares of Hindalco Industries tanked nearly 4 per cent in morning trade on Friday to hit their lowest level in three months, a day after the company reported a 17.9 per cent year-on-year drop in profit at Rs 506 crore for the March quarter compared with Rs 616 crore profit in the corresponding quarter last year.
Global brokerage CLSA maintained its sell recommendation on the stock with a target price of Rs 180 after the March quarter numbers.
On the other hand, Credit Suisse maintained outperform rating on the stock with a target price of Rs 300 but cut the FY19 and FY20 earnings per share (EPS) estimate by 3 per cent and 8 per cent, respectively.
Top 10 gainers at around 11.20 am
Price as on 17 May, 2019 11:23 AM, Click on company names for their live prices.
Bajaj Finance shares jump 4% on Q4 numbers; what brokerage say
Shares of Bajaj Finance surged over 4 per cent in the morning session on Friday, a day after it reported a 57 per cent year-on-year (YoY) jump in consolidated profit at Rs 1,176 crore.
Deutsche Bank maintained a hold rating on the stock, but increased the target price to Rs 2,700 from Rs 2,400.
Morgan Stanley maintained a neutral view on the stock, raising the target price to Rs 2,950 from Rs 2,600.
Credit Suisse has an underperform view on the stock but raised the target price to Rs 1,930 from Rs 1,660.
Bitcoin extends losses, down more than 20% to below $6,300
The price of bitcoin sank almost 20 per cent on Friday, an abrupt move after a strong recovery in the crypto-currency in recent weeks that took it to 10-month highs. Bitcoin fell to as low as $6,178 at Bitstamp exchange, down 21.6 per cent from the previous close and last stood down 7.8 per cent at $7,266.
Podcast: Market moving stocks and news
RCom, YES Bank, Voda Idea among most active stocks on NSE
Price as on 17 May, 2019 09:39 AM, Click on company names for their live prices.
OPENING BELL: Sensex gains 80 pts, Nifty above 11,270; RCap, Reliance Nippon rally up to 7%
Sensex gains 20 points, Nifty tops 11,250; rupee trades at 70.26 against the US dollar.
Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange were trading 18.50 points, or 0.16 per cent, lower at 11,286.50, indicating a negative start for the Nifty50.
Tech view: Nifty forms 'Harami' pattern
Nifty50 climbed over 1 per cent on Thursday, led by a rally in banking and IT names as the weekly derivative contracts expired. During the day, the index respected the 100-day moving average, and traded within Tuesday’s intraday range for the second session. Analysts said followup buying through 11,300 level may show signs of strength.
Asia shares inch higher
Asian shares were trying to end a bleak week in the black on Friday as upbeat US economic news and solid company earnings offered a respite from the interminable Sino-US trade saga, Reuters reported. MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1% and off a 15-week trough, but was still down 1.8 per cent for the week.Japan's Nikkei bounced 0.7 per cent in early trade, while the main Australian index added 0.5 per cent.
S&P futures trade flat
E-Mini June futures for the S&P500 were trading at 2,881, up 2.5 points. In overnight trade, the Dow Jones Industrial Average rose 214.72 points, or 0.84 per cent, to 25,862.74, the S&P500 index gained 25.37 points, or 0.89 per cent, to 2,876.33 and the Nasdaq Composite added 75.90 points, or 0.97 per cent, to 7,898.05.
Oil prices up for 4rd day
Oil prices edged higher on Friday, extending gains into a fourth session as rising tensions in the Middle East stoked fears of potential supply disruptions. Brent crude futures were at $72.82 a barrel, up 20 cents, or 0.3 per cent, from their last close. US WTI crude futures were at $63.18 per barrel, up 31 cents, or 0.5 per cent, from their previous settlement.
US housing starts up 5.7%
Housing starts rose 5.7 per cent to a seasonally adjusted annual rate of 1.235 million units last month, driven by gains in the construction of both single- and multi-family housing units, the US Commerce Department said on Thursday.
US recession risk rises: Reuters poll
Over the last month the US-China trade war has boosted the risk of a US recession, say a strong majority of economists polled by Reuters, who now put the chances of that happening in the next two years at 40 per cent.
FPIs sell Rs 953 cr worth equities
Foreign portfolio investors (FPIs) sold Rs 953.23 crore worth of domestic stocks on Thursday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 948 crore, data suggested.
Sensex on Thursday
BSE Sensex closed at 37,393, up 279 points or 0.75 per cent with 21 out of 30 stocks in the green. NSE Nifty ended 100 points or 0.90 per cent higher at 11,257.
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