Equity market reversed gains on Tuesday, as euphoria over exit poll outcomes, which predicted a second-term for the BJP government, fizzled out.
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We see wide trading range for Nifty. Traders must lighten up positions a bit and prepare for roller coaster moves. Aggressive bets ahead of the election outcome are not recommended
- Sameet Chavan, Angel Broking
Though with election results on Thursday we believe the rising window pattern made yesterday would have its own importance. Any dip below 10,650-10,680 would be bought at the range till results remain between 11,500-12,100. The lower levels may remain intact though there may be a test of sentiment and patience while sailing in volatility. We suggest traders; use extreme dips to 10,650 or below that to enter in a bullish trend for upside to 12,000
- Mustafa Nadeem, CEO, Epic Research
Nifty may remain volatile till election results are declared and if Modi-led govt again comes to power, then uptrend could stay. Along with this, the hopes of rate cut by the RBI in June would also be a key factor. For the rest of the week, FMCG and Banking sector could be strong while auto sector may remain weak. For the rest of this week, Nifty would have resistance at 12,000 while it would have support at 11,420 levels
- Romesh Tiwari, Head of research, CapitalAim
Tata Motors operating results were below estimates due to margin miss at both JLR and standalone business. The outlook for JLR is challenging in the near term as management expects loss in Q1FY2020 with negative FCF. Management expects domestic business to remain challenging for the next two quarters due to subdued demand in both the PV and CV segment and huge increase in the competitive intensity. Given the near term challenges, we continue to retain neutral view on the stock
- Bharat Gianani, Research Analyst, Sharekhan
While Nifty has corrected, the underlying trend remains up. Further upsides are likely once the immediate resistances of 11,857-11,884 are taken out. Crucial supports to watch for any weakness are at 11,682 and 11,657
- Deepak Jasani, Head of Retail Research, HDFC securities
Dark Cloud Cover pattern indicates a reversal of prior trend. However, the pattern will be confirmed only, if Nifty closes below 11,708. Given the overall sentiment, we expect high volatility over the next couple of days. The index may find support at 11,550 and 11,620
Notwithstanding the rally, we expect the market to consolidate post the election outcome (even if favourable) as focus would shift back to fundamentals (corporate earnings) and global cues, which has been volatile due to re-escalation of trade tensions between US-China. Further, movement in crude oil prices, which has been gaining momentum post US ended Iran sanction waiver and currency will also provide direction
- Jayant Manglik, President - Retail Distribution, Religare Broking
Profit booking was seen in banking stocks after yesterday's sharp surge. Other sectors such as auto, metal, IT and realty also faced selling. Traders can also book profit in tomorrow’s trading session ahead of the general election results
- Rajnath Yadav, Sr. Research Analyst, Fundamental Research Desk
Market gave up gains after testing a new high as the positive sentiment on exit polls is gradually priced-in. The pre-election rally may continue if the election verdict comes in tandem with exit polls where quality mid & small caps will outperform. Additionally, the downside risk in the market is likely to be protected in the near term supported by extension in economic reforms and pick up in earnings. On the other hand, the global peers are trading in a positive note with signs of ease in trade tensions
- Vinod Nair, Head of Research, Geojit Financial Services
CLOSING BELL: Sensex off lifetime high, plunges 383 pts as exit polls euphoria fades; Nifty barely holds 11,700
A potential victory for Modi’s Bharatiya Janata Party-led alliance will also help bring back domestic fund flows, and that’s good news for mid-cap stocks, said Mahesh Nandurkar and Abhinav Sinha, analysts at CLSA India Pvt.
Reliance topples IOC to become the biggest Indian company
Richest Indian Mukesh Ambani's oil-to-telecom conglomerate Reliance Industries has toppled state-owned Indian Oil Corp (IOC) to become the country's biggest company by revenue.
Reliance in the 2018-19 fiscal year that ended March 31, reported a turnover of Rs 6.23 lakh crore. In comparison, IOC posted a turnover of Rs 6.17 lakh crore for the fiscal, according to regulatory filings by the two companies.
It was also the most profitable company in the country with a net profit of more than double that of IOC in FY2019.
Top auto losers
Price as on 21 May, 2019 02:42 PM, Click on company names for their live prices.
Top IT losers
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Biggest bank losers on NSE
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Sensex plunges 400 points, Nifty tests 11,700 as bank, auto, IT stocks bleed
Shares of companies in capital goods, infrastructure, construction, power and NBFCs rallied on Monday encouraged by the exit poll, which pointed to a BJP-led coalition victory in the general elections. These sectors are likely to benefit if BJP returns to power, said analysts.
Monte Carlo Fashions hits record low on lackluster results
Shares of Monte Carlo Fashions hit their record low, as they slip over 8 per cent to Rs 293.5, a day after posting March-quarter results. On Monday, the fashion retailer said its loss for the quarter ended March 31, widened to Rs 18.85 crore, or $2.70 million, from Rs 8.68 crore a year ago.
While exit poll projections have created a lot of euphoria in the market, lifting the benchmark indices to new highs, brokerages say they do not find the risk-reward favourable for equities.
To be sure, brokerages are not worried about the election outcome, which could at best draw knee-jerk reaction. What they are worried about is continuous earnings downgrades, cautious management commentaries and weakening macro data, which suggest the domestic economy is slowing down.
Price as on 21 May, 2019 12:25 PM, Click on company names for their live prices.
The exit poll has thrown up much better numbers for NDA and BJP and which is why we are seeing this rally. But our sense is that now that the market has run up, we are pricing in a best case scenario or the blue sky scenario. There can be some gaps between the actual numbers on 23rd and what has been put out by exit poll. The market does not seem to be pricing that in. I think that from now till 23rd, it definitely makes sense to be cautious in the market and it is not advisable to commit extra funds at this point of time.
- Hemang Jani
A thought from Samir Arora
I love it when some report says BUY because worst seems to be over. Do they mean now it is merely "normal bad" rather that worst possible?
Most market participants were not expecting a majority verdict for the NDA like the exit polls are projecting. Plus ,a lot of short positions existed as well. Some even didn’t rule out the possibility of a coalition government.
Which is what triggered the monster rally and biggest move in the market in a decade, says Nirmal Jain, Chairman of IIFL Group. “Hopes of a stable government are nudging people to jump into the market right now,” said Jain, a market veteran.
DRL jumps 4% as firm looks to increase R&D expenditure
A day after suffering a strong loss of 6 per cent, shares of Dr Reddy’s Laboratories (DRL) jumped over 4 per cent in morning trade on Tuesday after the drugmaker said it has plans to spend up to $300 million on research and development (R&D) during this financial year.
Shares of Tata Motors fell 5 per cent in Tuesday's session, a day after the automaker reported a 49 per cent decline in consolidated net profit to Rs 1,108.66 crore for the quarter ended March 31.
Global brokerage Jefferies maintained buy recommendation on the stock with a target price of Rs 250, highlighting that China turnaround is the key for the company.
Morgan Stanley, meanwhile, retained equal-weight view on the stock with a target price of Rs 184, underscoring that China and India weakness is dragging on earnings.
CLSA reaffirmed its sell recommendation on the stock with a target price of Rs 150. The brokerage said that the JLR outlook remains weak while Indian business value has cyclically peaked given an impending truck downcycle.
United Breweries Q4 net profit falls 25.26% to Rs 67.92 crore
United Breweries reported 25.26 per cent fall in its standalone net profit of Rs 67.92 crore for the fourth quarter ended March 2019.
The company had posted a net profit of Rs 90.88 crore in the January-March period a year-ago.
Its total income during the quarter under review was up 5.84 per cent to Rs 3,469.3 crore as against Rs 3,277.85 crore in the corresponding quarter of the previous fiscal.
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RPower, Suzlon Energy, Tata Motors most active stocks on NSE
Price as on 21 May, 2019 09:37 AM, Click on company names for their live prices.
Nifty surpasses previous high of 11,856, scales new record high
OPENING BELL: Sensex hits all-time high of 39,500; Nifty, Nifty Bank also scale fresh record highs; VIX plunges 12%
Sensex drops 50 points, Nifty above 11,900; rupee trades at 69.74 against US dollar.
Singapore trading sets stage for flat start
Nifty futures on the Singapore Exchange were trading 3 points, or 0.03 per cent, higher at 11,868, indicating a flat start for the Nifty50.
Tech view: Nifty forms bullish pattern
While analysts are optimistic, they are not ruling out some profit taking at higher levels. “The 11,850-12,000 range will be an area full of resistances. There is a possibility that the index will give up its gains near this key resistance zone and start tumbling again,” said Gaurav Ratnaparkhi of Sharekhan.
Asia shares hover near 4-month low
MSCI's broadest index of Asia-Pacific shares outside Japan was flat in early trade but stayed close to a four-month low touched on Friday. It has fallen about 8 per cent from a nine-month peak hit just over a month ago. Japan's Nikkei fell 0.5 per cent.
Brent at multi-week high
Oil prices held near multi-week highs as OPEC indicated it was likely to maintain production cuts while escalating Middle East tensions provided further support. Brent crude futures traded up 0.1 per cent at $72.07 per barrel while US crude futures fetched $63.30 per barrel, up 0.3 per cent.
US stocks settle lower
The Dow Jones Industrial Average on Monday dropped 84.10 points, or 0.33 per cent, to 25,679.90. The S&P 500 dipped 19.30 points, or 0.67 per cent, to 2,840.23. The Nasdaq Composite Index was down 113.91 points, or 1.46 per cent, to 7,702.38.
Re appreciates against dollar
The rupee on Monday strengthened 1.2 per cent to hit an intra-day high of 69.36 a dollar. It shed some of the gains later to close at 69.74 against’s Friday’s closing of 70.22.
Trump warns Iran of 'great force'
US President Donald Trump said on Monday Iran would be met with "great force" if it attempted anything against US interests in the Middle East, adding that Tehran has been very hostile toward Washington.
FIIs buy Rs 1,734 cr worth equities
Foreign portfolio investors (FPIs) bought Rs 1,734.45 crore worth of domestic stocks on Monday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 542.71 crore, data suggested.
Sensex on Monday
The BSE benchmark Sensex zoomed 1,421 points or 3.75 per cent to 39,353 with all but two stocks in the red. NSE Nifty settled at 11,828, up 421 points or 3.69 per cent. India VIX eased 16.74 per cent to 23.37.
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