Traders’ Diary: Investors pinning hopes on earnings recovery
Sensex and Nifty hit fresh record, led by gains in HDFC, ITC, Axis Bank and TCS.
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Why Rajiv Bajaj isn’t expecting anything from Budget 2020
Multiple technical parameters on the lower time frame charts are hinting at a sideways move with limited upside, as most of them are either in the overbought zone or displaying negative divergence. Weakness may not emerge instantly as there are no apparent sell signals. Moreover, the daily MACD generated a buy signal in today’s session. However, its impact can be limited as the market has already rallied in last four sessions. Besides, a similar ‘buy’ signal from the MACD in last December around the 12,200 level failed to add incremental gains to Nifty, which had topped out in next two sessions
- Mazhar Mohammad, Chartviewindia.in
Nifty's support has shifted higher to 12,330-12,280 zone, holding above which the current bullish momentum can stay intact. In that case, the index may see the next move towards the 12,400-12,450 zone, which is the immediate short-term hurdle
- Rohit Singre, Senior Research Analyst, LKP Securities
Except for banking and realty, all other sectoral indices ended in the positive territory. The overall trend of the market remained positive and supports shifted higher gradually. Now, Nifty needs to sustain above its previous swing high of 12,293 to continue the ongoing up-move towards the 12,450 – 12,500 zone. On the downside, major support is seen at 12,250 and then 12,150 levels
Nifty is in important supply zone of 12,350-12,400, but it is not showing any signs of weakness. If it manages to take out this resistance zone, then we can expect a rally towards 12,545/12,700 in the coming days. On the downside, 12,300 will act as an immediate support, below this, 20-DMA of 12,205 will be next important support
- Santosh Meena, Senior Analyst, TradingBells
High inflation rate and low growth rate is not a good mix for any economy. With the inflation rate inching above the 6 per cent upper band and unfavorable base effect in the coming months, it looks like RBI will extend its pause in rate cuts. Though some positive signals are visible in the economy, it is too early to say that the economy has entered the revival path. The widening of the fiscal deficit can reverse the trend in the bond market, bringing in more pressure on the long-term bond yields. In such a scenario, the impact of Operation Twist by RBI will recede and could lead to a higher cost of borrowing
- Deepthi Mary Mathew, Economist, Geojit Financial Services
Despite weak macro data, investors are pinning hopes on earnings recovery and sops in Budget. However, we remain cautious on the market given that the indices are at its peak levels. While the global cues look positive, progress of earnings season may continue to induce stock specific volatility in the market
- Ajit Mishra, VP - Research, Religare Broking
The market is moving ahead ignoring the sudden jump in CPI with an optimistic view on Budget and earnings growth visible in the ongoing Q3 results. The month-on-month bounce in inflation is expected to settle since a large part of the gains are one-time in nature, as indicated in the WPI, which is still sober in-line with the slow activities of the economy
- Vinod Nair, Head of Research, Geojit Financial Services
Gold falls Rs 61 on weak global prices, absence of demand
Gold on Tuesday fell Rs 61 to Rs 40,422 per 10 gram in the national capital on weak global prices and absence of demand, according to HDFC Securities.
In the previous trade, it had closed at Rs 40,483 per 10 gram.
Silver prices tumbled Rs 602 to Rs 47,083 per kg, compared with Rs 47,685 per kg on Monday.
Chhattisgarh extends leases of 4 mines to NMDC upto 2035
Price as on 14 Jan, 2020 03:11 PM, Click on company names for their live prices.
TV18 Broadcast Q3 net profit up 40% at Rs 205 crore
Media firm TV18 Broadcast on Tuesday reported a 39.60 per cent rise in its consolidated net profit at Rs 205.16 crore for the quarter ended December 31, 2019. The company had posted a net profit of Rs 146.96 crore for the corresponding period of the previous fiscal, TV18 Broadcast said in a regulatory filing. Consolidated revenue from operations of the company stood at Rs 1,425.37 crore for the quarter under consideration, as against Rs 1,474.70 crore a year ago.
Splitting the roles of chairman and MD is presumed to be a critical item from corporate governance perspective. However, the corporates are already burdened with significant amount of compliance costs. There are many unlisted companies which do not want to get listed only because of heavy compliance requirements for listed companies. While we have to ensure that the corporate governance principles are adhered to, we will have to maintain a balance that the companies are not affected in doing their regular operations.
- Niteen S Dharmawat, co-founder, Aurum Capital on splitting of chairman and MD roles
LTCG against Modi’s aim of encouraging wealth creators: Sunil Subramaniam
Top 10 NSE gainers in afternoon session
Price as on 14 Jan, 2020 01:27 PM, Click on company names for their live prices.
Bandhan Bank Q3 net more than doubles to Rs 731 crore
Bandhan Bank on Tuesday reported a 120.85 per cent year-on-year rise in net profit at Rs 731 crore for the December quarter compared with Rs 331 crore in the same quarter last year. The numbers are not comparable as the third quarter results included figures for Gruh Finance, which was merged with the bank with effect from October 17, 2019.
ALERT: December WPI Inflation at 2.59%
Sebi exempts Mehta Family Trust from making open offers for Torrent Group cos
Price as on 14 Jan, 2020 11:52 AM, Click on company names for their live prices.
Fitch assigns 'BB' rating to Glenmark's proposed US dollar-denominated senior unsecured notes
Price as on 14 Jan, 2020 11:51 AM, Click on company names for their live prices.
Ahead of Q3 results...
Price as on 14 Jan, 2020 11:45 AM, Click on company names for their live prices.
Deepak Fertilisers & Petrochemicals sells non-core industrial land in Dahej for Rs 99 crore
Deepak Fertilisers & Petrochemicals on Tuesday said it has divested one plot of its industrial land in Dahej, Gujarat for Rs 99 crore, as part of the strategy to divest non-core assets. "The company has divested one of its plots of industrial land in Dahej...for total transaction value of Rs 99.2 crore," the fertilisers and industrial chemicals producer said in a regulatory filing. Shares of the company were trading at Rs 114.55, up 4.47 per cent on teh BSE in morning trade.
Edelweiss Financial Services asked to appear before ED on Wednesday: Co
Financial services firm Edelweiss Financial Services on Tuesday said it has received a communication from the Enforcement Directorate (ED) to represent and appear before it on Wednesday. The development follows the statement by the company's Chairman Rashesh Shah stating the firm has no relationship with Capstone Forex, which is being investigated by the ED for foreign exchange rules violation.
Michael Patra appointed RBI Deputy Governor for 3 years
Indian bond yields surge on higher inflation, shares largely flat
Indian bond yields rose sharply on Tuesday, while shares were little changed as hopes of a rate cut in February dimmed after data showed a higher-than-expected surge in inflation. India's annual retail inflation rose to 7.35% in December, its highest level in more than five years and well above the Reuters poll of a 6.2% rise.
The benchmark 10-year bond yield was up 7 basis points at 6.68% by 0430 GMT, after rising to 6.7% earlier and compared with its Monday's close of 6.60%.
IndusInd Bank advances ahead of Q3 results
Shares of IndusInd Bank advanced nearly in Tuesday’s trade ahead of its December quarter results scheduled for later in the day. The private lender is seen reporting a 50-60 per cent jump in year-on-year (YoY) rise in profit for the December quarter, but the numbers will not be comparable on a YoY basis due the bank's merger with Bharat Financial Inclusion that took effect on July 4 last year.
JSPL's coal gasification-based DRI plant in Odisha resumes operation
Price as on 14 Jan, 2020 10:34 AM, Click on company names for their live prices.
Shares of Religare Enterprises gained 5 per cent in Tuesday’s trade after value investors Ashish Kacholia and Mukul Agrawal bought stake in the company. Kacholia picked up 40 lakh shares while Agrawal bought 26 lakh shares at Rs 44 per share on Monday, bulk deal data on the NSE showed. Axis Bank sold 90 lakh shares of Religare Enterprises, data showed.
Bandhan Bank gains ahead of Q3 results; here’s what to expect
Shares of Bandhan Bank advanced over 1 per cent in Tuesday’s trade, ahead of its financial results for the quarter ended December 31.
Brokerage firm JM Financial Institutional Securities sees a 173 per cent year-on-year (YoY) rise in consolidated net profit at Rs 904.50 crore for Bandhan Bank during the quarter under review. It also sees 48.90 per cent and 55.10 per cent YoY increase in net interest income (NII) and pre-provisioning operating profit, respectively.
Ambit Capital sees a 136 per cent and 33 per cent YoY rise in net profit and operating profit of the bank in Q3FY20. However, it sees a 19 per cent and 9 per cent drop on a sequential basis for the quarter ended December 2019.
According to KR Choksey, Bandhan Bank's Q3 FY20 net interest income is expected to grow by 44 per cent YoY (5.9 per cent QoQ) with advances increasing by around 90 per cent over December '18.
YES Bank, Vodafone Idea, SAIL among most active stocks on NSE
Price as on 14 Jan, 2020 09:33 AM, Click on company names for their live prices.
Pre-open session: Sensex gains 100 pts, Nifty flat; rupee trades at 70.77 against dollar
Singapore trading sets stage for firm start
Nifty futures on the Singapore Exchange traded 34 points, or 0.28 per cent, higher at 12,391.50, indicating a firm start for Dalal Street.
Tech view: Nifty eyes 12,400 level
Nifty50 on Monday topped the 12,300 mark, and while doing so, took out a crucial resistance at the 12,290 level. The index formed a small bullish candle on the daily chart. Analysts said the index has the potential to scale the 12,400 mark in the short term, but gains will be shortlived.
Asian stocks climb ahead of US-China deal
Asian share markets rose and safe-haven assets slid as signs of goodwill between China and the United States supported optimism for global growth, with the world's two biggest economies preparing to formalise a trade-war truce. MSCI's world shares gauge hit a fresh all-time high, while MSCI's broadest index of Asia-Pacific shares outside Japan drifted higher. Japan's Nikkei added 0.8 per cent and hit its highest point in a month. Australia's S&P/ASX200 rose 0.7 per cent.
China no longer currency manipulator: US Treasure Dept
The US Treasury Department said China should no longer be designated a currency manipulator - a label it applied as the yuan slid in August. China, meanwhile, has allowed the tightly managed currency to climb to its highest point since July. China's offshore yuan extended strong gains to the dollar on Tuesday morning to a 5-1/2-month high, supported by rising optimism towards Sino-US trade developments. The offshore yuan surged to a high of 6.8745 per dollar, the firmest level since July 26.
Oil prices edge lower
Oil prices edged lower as receding Middle East tensions took some heat out of the market, with both Tehran and Washington desisting from any further escalation after this month's clashes. Brent crude was down 8 cents, or 0.1 per cent, at $64.12 per barrel. US West Texas Intermediate crude futures were down 4 cents, or 0.1 per cent, at $58.04 a barrel.
US stocks hit record highs
In overight trade, the Dow Jones Industrial Average index rose 83.28 points, or 0.29 per cent, to 28,907.05. The S&P500 index gained 22.78 points, or 0.70 per cent, to 3,288.13 and the Nasdaq Composite index added 95.07 points, or 1.04 per cent, to 9,273.93.
December wholesale inflation data today
WPI data for December will be released today. Data released on Monday suggested that consumer price inflation accelerated to 7.35 per cent in December on the back of rising food prices, breaching the upper end of the Reserve Bank of India's 2-6 percent target band for the first time since July 2016.
FPIs buy Rs 68 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 68 crore on Monday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 47 crore, data suggests.
Sensex on Monday
Market benchmarks Sensex and Nifty ended at fresh lifetime highs on Monday, propelled by gains in Infosys amid positive domestic and global cues. After rallying nearly 300 points to its record intra-day high of 41,899.63, the 30-share BSE index settled at a new closing peak of 41,859.69, up 259.97 points, or 0.62 per cent.
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