Skip to main content

Nifty struggles below 8500; rupee falls too, GSPL soars 5%



11:20am FII View: There are too many factors in the short-term to predict the near-term trajectory, is the word coming in from Anup Maheshwari, executive vice-president and head of equities at DSP Blackrock Investment Managers.

The first quarter is usually a little soft for the midcaps, but they come back in the subsequent quarters, he says. But earnings overall have been disappointing in the last few quarters, he adds. However, he believes that earnings will normalize soon and it is a buy on dips market.

In telecom, he says the sector is yet to see pricing power. He is waiting for revenue per minute (RPM) to increase in telecom to justify capex in auctions.

Maheshwari also expects the government to start spending aggressively from next month.

11:00am Market Check

The market plunged on expiry day, infact extended losses into the seventh consecutive session. The rupee and bond markets too declined, reacting to the spike in brent crude prices.

The Sensex dropped 236.66 points to 27875.17 and the Nifty slipped 58.30 points to 8472.50. About 802 shares have advanced, 1335 shares declined, and 152 shares are unchanged on the BSE.

Telecom stocks such as Bharti Airtel remained in focus, up 1.5 percent. Spectrum auctions concluded yesterday after 19 days and 115 rounds of bidding. Kotak says while aggregate results are marginally negative versus their pre-auction expectations, it does not see preliminary results as an irreparable damage outcome. Kotak is positive on Bharti and Idea Cellular.

Companies with gas based power plants such as Torrent Power, GMR Infra and Lanco Infratech were in focus. The government approved a mechanism for providing imported LNG to stranded gas based power plants at a concessional rate.

Citi says Gujarat State Petronet is likely to be the biggest beneficiary. GSPL's earnings could increase by 28-30 percent against a 7 percent increase for GAIL's earnings. The brokerage says there is a potential 10-18 mmscmd of additional LNG import. Analysts see the policy move as an incremental positive for lenders to gas based power plants such as IDFC, SBI and IDBI amongst others.

United Bank spiked 4.5 percent as the RBI has relaxed restrictions on credit disbursements of the bank.
Meanwhile, the Indian rupee dropped 38 paise to 62.70 a dollar. Global markets continued to be in focus on account of the geopolitical tensions emerging in Yemen. Brent crude prices spiked up to USD 58 a barrel. More information please visit this site www.shristocktips.com

Comments

Popular posts from this blog

Dark secrets of share market

Dark secrets of share market
Stock market has some dark secrets that no broker tells. And what is more surprising is that these secrets belong to the steps taken to make money.
Let’s see how positive things turn negative
1# Commodity price risk
When price of commodity escalates, it brings joy to the companies that see commodities as output. But for companies that see commodities as inputs see loss in increased. Companies that don’t deal in commodities also face difficulties with price escalation. It is so because the customers start selling commodities. And it won’t be an exaggeration to say that commodity pricing effects the entire economy.
2# Headline risk
Do you remember the news of Fukushima nuclear crisis? This news surfaced in 2011 and it drowned all the stocks related to businesses related to nuclear power like uranium miners. It is called headline risk and no business is free from this risk. A torrent ofnews-reports regarding a business can have an adverse effect on its commodity p…

Nifty could slip towards 9,900; 3 stocks which could give up to 11% return

A close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

The Nifty index Futures continued to slide lower for the second month in a row making it 10 percent decline from the record highs. Further, it has broken down from a broadening wedge pattern along with a close below the 200-DMA, affirming weakness dominant in the markets at the moment.

A sustained trade below 10,050 can accelerate the fall to levels of 9,930-9,700. However, a close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

Moreover, the relative strength index or the RSI has turned down from the neutral levels of 50 on two occasions in recent pullbacks suggesting further weakness in the coming trading sessions.

Here is the list of stocks which can give up to 11 percent return:

Arvind Ltd: SELL| Target Rs345| Stop Loss Rs410| Return 11%

On the weekly chart, Arv…

Reliance Infra arm moves Delhi HC over arbitration award against DMRC; stock up 5%

Subsidiary Delhi Airport Metro Express has moved the Delhi High Court seeking execution of the Arbitration award it had won against Delhi Metro Rail Corporation.
Reliance Infrastructure share price rallied 5 percent intraday Tuesday after the company's subsidiary DAMEPL has moved the Delhi High Court over the execution of Arbitration award against DMRC.

"...subsidiary Delhi Airport Metro Express Pvt. Ltd. (DAMEPL) has moved the Delhi High Court seeking execution of the Arbitration award it had won against Delhi Metro Rail Corporation (DMRC)," the company said in its filing.

The arbitral award was recently upheld by a single judge bench of the Delhi High Court.

In its petition filed under section 36 of the Arbitration and Conciliation Act in the division bench headed by Chief Justice of Delhi HC, DAMEPL has sought an order for the execution of the award dated May 11, 2017 passed by the Arbitral Tribunal and direct DMRC to pay a around Rs 5,200 crore, the company said.

Thi…