Friday, 20 July 2018

Share Market Update: These Stocks Plunge Over 5% Defying Positive Market Sentiment

Equity market update | Trade Nivesh

Even as market sentiment was positive owing to buying in IT, energy, bank and auto stocks, shares of 8K Miles Software Services (down 8.09 per cent), SREI Infrastructure Finance (down 6.04 percent) and Sagar Cements (down 5.68 per cent) plunged over 5 per cent on NSE in Friday's trade. 

Vakrangee (down 4.99 percent), Man Industries (down 4.99%, Dilip Buildcon (down 4.99 percent), Manpasand Beverages (down 4.98 percent), Prakash Industries (down 4.97 percent), Jaypee Infratech (down 4.90 per cent), PC Jeweller (down 4.38 per cent) and MM Forgings (down 4.20 per cent) declined up to 5 per cent. 

The market was in the positive territory ahead of the voting and debate over the no-confidence motion against the Modi government.

Buying in heavyweights including Infosys, Reliance Industries, ICICI Bank, Larsen & Toubro and Tata Consultancy Services boosted equity benchmarks. 

The NSE Nifty index was trading 50 points up at 11,007, while the BSE Sensex was up 168 points at 36,519 around 10:15 am.

Thursday, 19 July 2018

Asian Shares Higher on US Earnings but Trade Worries Rattle Offshore Yuan

Asian market | Trade Nivesh


Asian shares made early gains on Thursday as upbeat Wall Street earnings supported global investor sentiment, although trade war jitters pushed China’s offshore yuan to a fresh one-year low.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.53 percent, while Japan’s Nikkei and the Australian benchmark advanced 0.42 percent and 0.38 percent, respectively.

On Wall Street, the Dow Jones Industrial Average rose 0.32 percent and the S&P 500 gained 0.22 percent to hit a more than five-month high, while the Nasdaq Composite declined marginally by 0.01 percent.

Trade Nivesh Stock advisory markets were also supported by the Powell reiterating that the U.S. economy was healthy, even though he warned that rising world protectionism would over time pose a risk to the global economic expansion.

“While strong U.S. corporate earnings certainly helped boost sentiments, but that’s not enough to push the stocks meaningfully higher from here,” said Yasuo Sakuma, chief investment officer at Libra Investments.

On the foreign exchange market, the trade war fears between the United States and China kept the offshore yuan to 6.7650 per dollar, to hit its lowest level since July 2017.

The dollar index against a basket of six major currencies rose to a three-week high of 95.4 before settling around 95.08, up 0.2 percent. Against the Japanese yen, the dollar hit a 6-1/2 month high of 113.140 yen on Wednesday. The euro was down 0.16 percent to USD 1.164.

In his two-day congressional testimony, the Fed’s Powell said he believed the United States was on course for years more of steady growth and played down the risks to the U.S. economy of an escalating trade conflict.

However, in the Fed’s Beige Book released on Wednesday, manufacturers in every one of the central bank’s 12 districts expressed concern about the impact of tariffs, even as the U.S. economy continued to expand at a moderate to modest pace.

“Trade war fears are something that won’t go away overnight. Investors need to be prepared for various possibilities, such as the United States versus China and the United States versus European Union,” said Libra’s Sakuma.

Benchmark U.S. 10-year notes fell in price to yield 2.875 percent, from 2.862 percent on Tuesday. The U.S. yield curve remained near its flattest in nearly 11 years.

Oil prices rose 1.0 percent overnight after U.S. government data indicated bullish demand for gasoline and distillates, which overshadowed a surprise build in U.S. crude inventories and U.S. crude oil production’s hitting 11 million barrels per day for the first time.

U.S. crude last traded at USD 68.86 per barrel, up 0.15 percent on the day, and Brent was at USD 72.82, down 0.11 percent, in Asian trade.

Wednesday, 18 July 2018

Japan Shares Jump as Yen Bows to Strong Dollar

Asian shares followed Wall Street higher on Wednesday as a bullish outlook from the head of the U.S. central bank buoyed the dollar, lifted Tokyo shares to a one-month top and sent gold to a one-year trough.

Japan's Nikkei leaped out of the blocks with a 1 percent gain as a weakening yen promised to fatten exporters' profits.

MSCI's broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS added 0.16 percent and South Korea's market 0.85 percent.

Federal Reserve Chairman Jerome Powell stuck with an upbeat assessment on the US economy while downplaying the impact of global trade risks on the outlook for rate rises.

The main risk is that individuals, business, and financial markets have underestimated the desire of Trump to re-orient trade flows and that further steps to implement tariffs will lead to a reduction in confidence, a slowdown in hiring, and a correction in equity markets.

BofA Merrill Lynch’s latest fund manager survey showed a trade war remained the biggest risk cited by no less than 60 percent of respondents.

For now, US companies seem to be profiting mightily from tax cuts as the earnings season shifts into high gear. Analysts now see second-quarter S&P 500 earnings growth of 21.2 percent, up from 20.7 percent on July 1.

Of the 39 companies in the index that have reported so far, 84.6 percent have come in ahead of Street expectations. The Dow ended Tuesday up 0.22
percent, while the S&P 500 gained 0.40 percent and the Nasdaq 0.63 percent.


Powell’s support for more rate hikes sent two-year Treasury yields to the highest in nearly a decade and lifted the dollar broadly.

Trade Nivesh Stock Advisory Said That "the dollar was up at 95.045, after jumping 0.46 percent overnight", It also climbed to its highest since January against the yen at 113.07.

The euro was stuck at USD 1.1655, after weakening 0.4 percent on Tuesday.

The pound suffered another bout of Brexit jitters after British Prime Minister Theresa May only just cleared the latest parliamentary hurdle to her leaving plans.

Bank of England Governor Mark Carney warned a no-deal Brexit would have “big” economic consequences and force a review of plans to raise interest rates.

Sterling was last huddled at USD 1.3104, after sliding 0.9 percent overnight.

The rising US dollar coupled with the prospect of higher US interest rates spelled trouble for gold, which crashed through major chart support to hit a one-year low.

Spot gold was 1.1 percent lower at USD 1,226.91 per ounce, having cratered at USD 1,225.58. The slightly less precious metal is down more than 5 percent for the year.

Oil prices also eased early on Wednesday, with Brent LCOc1 off 53 cents at USD 71.63 a barrel. US crude CLc1 was quoted down 31 cents at USD 67.77 barrel.

Monday, 16 July 2018

Dr Reddy's Slips Over 10% after US Court Order on Suboxone; Global Brokerages' Reactions Mixed

equity | TradeNivesh

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Dr. Reddy's Laboratories slipped a little over 10 percent in morning trade on Monday after the New Jersey District Court converted a temporary injunction into a preliminary injunction against the company that prevents it from launching generic Suboxone in the US market until patent litigation related to US Patent No. 9,931,305 is concluded.

Reacting to the news, Dr. Reddy’s Laboratories slipped as much as 10.7 percent in the first 15-minutes of trade. It was the top Nifty loser.
"The company disagrees with the court's decision, and will vigorously appeal it," Dr. Reddy's said in a disclosure to the exchanges. It intends to appeal the decision made by the court in a preliminary injunction hearing.
Dr. Reddy's launched its generic buprenorphine/naloxone sublingual film or Suboxone "at-risk" in the US on Friday after it got a final approval from the US FDA on June 15.
Indivior, the innovator that was spun out from British drug maker Reckitt Benckiser, approached the court and secured an immediate injunction against Dr. Reddy's from launching the drug on grounds of pending patent litigation.
Suboxone, used in the treatment of opioid dependence, had US sales of around $1.86 billion for the 12 months ended April, according to CQ VIA. The drug accounts for about 80 percent of Indivior's sales.

Jefferies: Underperform| Reduce target to Rs 1,850 from Rs 1,910

Jefferies retain its underperform rating on Dr. Reddy’s Laboratories but reduced its target price to Rs 1850 from Rs 1910 earlier.
The company received a preliminary injunction against Suboxone generic launch. The injunction is a surprise as Indivior had to show that it can prevail in the patent hearing.
The global brokerage firm further added that the injunction adds to risks for FY2o-22 EPS estimates which have increased post the ruling.
Morgan Stanley: Overweight| Target: Rs 3,465
Morgan Stanley maintains an overweight rating on Dr. Reddy’s Laboratories with a target price of Rs 3465. The monetization timeline now gets delayed for Suboxone. The Court verdict contrary to the expectation of sales resumption said the note.
Nomura: Buy | Target Rs 2,704
Nomura maintains a buy call on Dr. Reddy’s Laboratories with a target price of Rs 2704. The preliminary injunction (PI) is in favor of Indivior and against Dr. Reddy's.
Dr. Reddy’s appeal on PI verdict will take 2-6 months, said the Nomura note. PI would adversely impact as competition could intensify for the drug. Nomura attributes 60 percent share for the Suboxone opportunity in price target.

Friday, 13 July 2018

Bank Nifty Put Options See Surge in Open Interest

Bank Nifty | TradeNivesh


Bank Nifty index climbed to a new high of 27,164 on Thursday due to foreign fund inflows and strengthening of rupee against the dollar. Bank Nifty June futures contract zoomed 213.55 points to 26,995. The underlying value of the contract closed at 27,026.55.

Active call options of July 19 expiry

Among the call option chain, the In-The-Money Bank Nifty Call 26,900 option was the actively traded contract on Thursday. The option price gained 76.35 percent to close at Rs 239.75. However, OI in the contract shed 15.70 percent. 

This confirms that traders are pruning their positions in the contract despite an increase in the option price.

There was also a lesser demand for the option as the implied volatility is comparatively lower at 8.87 percent. It is an indication that the Bank Nifty may encounter stiff resistance around 27,200 levels in the short-term.

According to the Trade Nivesh Stock Advisory  Bank Nifty Call 27,200 option contract is currently an Out-Of-The-Money option. The option price rose 106.45 percent to Rs 102.50. OI in the contract surged 272.85 percent with the IV at 10.40 percent that indicates strong buying interest in the strike price. The Bank Nifty index is likely to face resistance at 27,200-27,250 levels in case of a further upward movement.

Active put options of July 19 expiry

On the put option chain, the In-The-Money Bank Nifty Put 27,100 option contract saw a huge increase in the open interest. The put option price closed down 38.85 percent at Rs 227.20 whereas the OI zoomed 7,063 percent.

The implied volatility was comparatively higher at 12.75 percent. This confirms that the underlying Bank Nifty may get support around 26,800-26,900 levels in case correction happens.

The Out-Of-The-Money Bank Nifty Put 26,800 contract was the most actively traded contract. This put option price declined 52 percent to Rs 92, while the OI climbed 591 percent. 

The option price has turned costlier with the implied volatility at 13.50 percent. This indicates that the Bank Nifty is likely to get traction around 26,800 levels in this expiry.

Thursday, 12 July 2018

MARKETS LIVE: Sensex Hits Record High, Nifty Crosses 11,000 Mark

Nifty Sensex | Equity


Benchmark indices are trading higher on Thursday with the S&P BSE Sensex hitting a record high of 36,540 levels - surpassing its previous high of 36,444 recorded on January 29, 2018, in intra-day deals. In broader markets, the Nifty50 index crossed the 11,000 mark with oil refining and marketing companies - HPCL, BPCL, and IOC - rallying over 4% each in morning trade.

In global markets, Asian stocks and commodities recovered slightly on Thursday as markets tried to consolidate from the previous session's steep losses when fears of an escalation in the US-China trade war jolted investor sentiment.

MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.05 percent. 


The index slumped 1 percent on Wednesday along with a slide in global equities after US President Donald Trump's threat to imposing tariffs on another $200 billion of Chinese goods deepened the trade row between the world's two largest economies.

 Hong Kong's Hang Seng rose 0.2 percent and the Shanghai Composite Index bounced 1.1 percent. South Korea's KOSPI added 0.35 percent and Japan's Nikkei gained 1.1 percent.

On the Wall Street, Dow Jones Industrial Average fell 219.21 points (0.88 percent) to 24,700.45, the S&P 500 lost 19.82 points (0.71 percent) to 2,774.02 and the Nasdaq Composite dropped 42.59 points (0.55 percent) to 7,716.61.

Wednesday, 11 July 2018

Asia Stocks Slip, Yen Rises as US Raises Stakes in Trade Conflict

Asia Stocks | Equity


Asian stocks retreated and perceived safe havens such as the yen and US Treasuries rose on Wednesday after the United States said it would impose tariffs on an extra 200 billion worth of Chinese imports, sharply escalating the trade war between the world's two biggest economies.

The United States had just imposed tariffs on USD 34 billion worth of Chinese goods on Friday, drawing immediate retaliatory duties from Beijing on US imports in the first shots of a heated trade war. 

US President Donald Trump had warned then that his country may ultimately impose tariffs on more than $500 billion worth of Chinese imports.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4 percent. The index had gained for the past two sessions, having enjoyed a lull from the trade war fears that lashed global markets last week.

South Korea's Kospi lost 1 percent and Japan's Nikkei fell 1.2 percent.

S&P 500 and Dow futures were down 0.8 percent and 0.95 percent, respectively, pointing to a lower open for Wall Street later in the day.

The Trade dispute can easily be blamed for a variety of ills. But it could mask over factors that could also weigh on equities in the longer run, such as tighter monetary policies led by the United States.

The yen, often sought in times of political tensions and market turmoil, gained against a number of peers.

The dollar was down 0.1 percent at 110.88 yen, pulled back from a near two-month peak of 111.355.

The euro fell 0.25 percent to 130.11 yen and the Australian dollar lost 0.7 percent to 82.24 yen.

The Aussie, considered a liquid proxy for China-related trades, fell 0.5 percent against the dollar to USD 0.7422.

The 10-year Treasury note yield fell roughly 4 basis points to 2.8345 percent, pulling back from the previous day's peak of 2.875 percent.

Brent crude futures lost 0.57 percent to USD 78.41 a barrel. Oil had risen the previous day, supported by a larger-than-expected US stock draw and supply concerns in Norway and Libya.

Monday, 9 July 2018

Traders Can Adopt an Long Iron Butterfly Spread on Bank Nifty

Bank Nifty | Trade Nivesh


The July series kick-started on a positive note with both the Nifty and Bank Nifty gaining 0.75 percent to 0.5 percent, respectively. However, the broader range for indices still remains intact. 

Option writers are using these alternate bouts of buying and selling to build positions aggressively both in the Nifty and Bank Nifty. 

Nifty options data depicts the highest congestion at 10,600 put while call writers are distributed across strikes 10,800 and 11,000. Volatility is relatively high for July, but the index is yet to witness a breakout in either direction.

With the onset of earnings season, sector and stock-specific movement will remain in the limelight. With IT majors like Infosys and Tata Consultancy Services and private sector banks like IndusInd Bank, Kotak Mahindra Bank, and HDFC Bank are likely to announce their results in the July series, stock-specific volatility could emerge. 

The Bank Nifty may stay in a range, with large oscillation in a heavyweight - HDFC Bank - also supporting the sideways movement.

Bank Nifty options data suggests highest call congestion at 26,000 put and 27,000 calls with an open interest of over 6 lakh shares. Volatility skew is flattish in the 26,000-27,000 band indicating further gyration. Thus, a low-risk oscillating strategy - Long Iron Butterfly Spread - is recommended in the Bank Nifty.

Long Iron Butterfly Spread is a rangebound strategy that offers decent reward-risk with low cost. It is set-up by selling at-the-money straddle and buying out-of-the-money strangles.

 Maximum profit in this strategy is made at the center point, while maximum loss is capped beyond the outer bounds both on the upside and downside.

Friday, 6 July 2018

Market Live: Sensex, Nifty trade higher; Varroc Engineering lists with 5% premium

Equity Market | TradeNivesh


Metal in focus: Metal stocks are in focus today as US tariffs are set to take effect

Price of metals has already fallen while global markets are readying themselves for new tariffs from the US in China worth USD 34 billion worth of goods which does not augur well for the metal space.

In the recent weeks, there have been selloffs but it seems things are going from bad to worse. Copper and zinc prices are trading at 11-month lows. 

Nickel and lead decline nearly a couple of percentage points and they are trading at May lows as well.

Steel and iron ore prices started softly in the Asian markets right now. But the only metal that is trading in the positive is aluminum and that is because China has released a statement saying that they will shut down some smelters to ensure environment control and that would lead to some curb in the output.

Crude oil prices also continue to look at the supply concerns. US President Trump on Thursday told the Organisation of the Petroleum Exporting Countries (OPEC) to reduce prices now and to increase output substantially.

Monday, 2 July 2018

Closing Bell: Global weakness drags Sensex 159 pts, Nifty below 10,700; Infosys, Titan up 2%

Equity Market News | Trade Nivesh


All sectoral indices traded in the red except IT. Metals lost shine.
The underlying short term trend of Nifty continues to be negative. Nifty sustaining only above 10,750 levels could have a  further positive impact ahead.

The chart pattern is signaling that we could witness choppy trend again with weak bias. The recent swing low of 10,550 levels could be retested for near term.

Nifty remained volatile and lost over half a percent, citing weak global cues. It started on feeble note and gradually declined as the session progressed however sudden rebound in selective index majors marginally trimmed the losses in latter half. Mostly sectoral indices traded in tandem to the benchmark index and ended lower. 

We reiterate advice to keep a close watch on global markets for further signal. Nifty is not giving away any cue while continue fall on broader front has pushed the bulls completely on the back foot. At the same time, it has result in oversold positions too so possibility of intermediate rebound can't be ruled out. Traders should restrict their trades in such scenario.

Monday, 25 June 2018

Sensex Opens Flat; Energy Stocks Lose

Today Equity News | Trade Nivesh

Asian share markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.4% while the Hang Seng is down 0.5%. The Shanghai Composite is trading up by 0.2%. Over the weekend, US stock indices closed mostly higher on gains in energy stocks.

Back home, India share markets opened the day on a flattish note. The BSE Sensex is trading down by 46 points while the NSE Nifty is trading down by 14 points. The BSE Mid Cap index and BSE Small Cap index both opened up by 0.2% & 0.1% respectively.

Sectoral indices have opened the day on a mixed note with energy stocks and automobile stocks witnessing maximum selling pressure. While, healthcare stocks & metal stocks opened the day in green. The rupee is trading at 67.77 to the US$.

In the news from the pharma space. As per an article in a leading financial daily, Dr Reddy's Laboratories Limited has lost a patent battle with Eli Lilly and Company over the litigation on Alimta (pemetrexed for injection) in the US. It is a drug meant for the treatment of several types of cancers.

Eli Lilly and Company announced that the US District Court for the Southern District of Indiana ruled in favour of Lilly that the Alimta vitamin regimen patent would be infringed by a competitor that had stated its intent to market alternative salt forms of pemetrexed prior to the patent's expiration in May 2022.

In a separate decision on 15 June, the District Court also ruled in favour of Lilly in the case of Eli Lilly and Company Vs Hospira.

Reportedly, these rulings mean Dr Reddy's Laboratories and Hospira will be prevented from launching their alternative salt forms of pemetrexed until the patent expires. Lilly said in its statement that it expects both Dr Reddy's Laboratories and Hospira to appeal.

In October 2017, the Patent Trial and Appeal Board of the US Patent and Trademark Office ruled in the company's favour regarding patentability of the vitamin regimen for Alimta.
According to the annual report 2017 of Eli Lilly, Alimta clocked US$ 2.1 billion worldwide including US$ 1.03 billion in USA.

Note that, innovators in the pharmaceutical industry make use of patents largely. They make heavy use of patents whenever they create a new drug. In one of the articles, we have spoken everything that you need to know about patented drugs, its advantages and its implications. Here's a snippet:

"That's how the innovators in the pharmaceutical industry work. They make heavy use of patents whenever they create a new drug. The patent allows them to recoup the high capital expenditure that goes into the research and development (R&D) of new drugs. Companies that have a patent on a particular product are immune from competition for the duration of the patent."

Notably, a number of patent infringement cases have been filed against leading Indian pharma companies and their counterparts in other countries over the last few years.
Dr. Reddy's share price opened the day down by 1.7%.

Moving on to the news from the bank sector. As per an article in a leading financial daily, Housing Development Finance Corp and Kotak Mahindra Bank are competing for a controlling stake in PNB Housing Finance as they aim to gain wider coverage in a mortgage market that's seen among the safest of havens in the lending world.

Promoters Punjab National Bank and Carlyle, which together own about 66% of the company, are looking to sell their stake to a large investor.

Reportedly, the deal is expected to fetch them about Rs 60 billion each. The listed mortgage lender has a market capitalisation of Rs 179.4 billion.

Earlier this month, fraud-hit PNB had informed that a decision to disinvest in PNB Housing Finance, Icra, Crisil and BSE will be taken at the appropriate time depending on market conditions and available options to implement PSB's reforms agenda for responsive and responsible PSBs (public sector banks).

Note that, having listed in November 2016 after a Rs 30-billion initial public offer, PNB Housing Finance has seen its market value almost double since then. Carlyle invested Rs 16 billion in February 2015 for a 49% stake in the then unlisted company. It now owns a 33% stake, having recently sold about 5% in the open market.

Speaking of PSBs, they have had a difficult year, to put it mildly. 


After the euphoria of recapitalization, bad loans have come to haunt them. Post the Gitanjali Gems fiasco, PSBs are yet to fully recover from its impact.

This under performance was despite the huge boost they got from the government last year. On 24 October 2017, the government announced a Rs 2.11 trillion public sector bank (PSB) capitalization plan. This move was aimed at reviving the PSBs from the bad loan mess.

The next day was a field day for investors in PSBs. PSB stocks went up between 30% and 47%. Despite this, the return in the year was way below average. PSBs like PNB have crashed more than 45% over the last one year.

Friday, 22 June 2018

Nifty Above 10,750 mark; MTNL, Sun Pharma Stocks Up

Equity Tips Today | Trade Nivesh


Market indices Sensex and Nifty slid amid an unfavorable global outlook.

Market indices Sensex and Nifty slid on escalating India-China trade tensions, tighter Federal Reserve policy, and the highly-anticipated OPEC meet, which made investors wary.

The BSE Sensex was trading at 35,483, up 52 points, while NSE Nifty was trading at 10,757, up 16 points.

Among notable stocks, Poly Medicure BV rallied at 8% after it entered into a Share Purchase Agreement with Plan 1 Health SRL. IDBI’s stock also surged at 2% after media reports indicated that government is thinking of selling 40-43% of its stake to LIC.

BSE Mid-cap Index was trading down 0.27% at 15,725, while BSE Small-cap Index was trading down 0.31% at 16,477.
M&M (+1.93%), Infratel (+1.79%), ITC (+1.53%), BPCL (+1.29%), and Bajaj Finance (+0.91%) were the top gainers on NSE.

Reliance (-1.86%), Grasim (-1.72%), UPL (-1.58%), Eicher Motors (-1.51%), and IndusInd Bank (-1.44%) were the top losers on NSE.

Some buying activity was seen in fast moving consumer goods and consumer durables, while banking, energy and oil & gas were showing weakness on BSE.

The India VIX was down 1.58% at 12.2500.

Out of 2,059 stocks traded on the NSE, 1,048 declined, 578 advanced, and 433 remained unchanged on Thursday.

A total of four stocks registered a fresh 52-week high in trade, while 117 stocks touched a new 52-week low on the NSE.

Thursday, 21 June 2018

Market Live: Sensex Consolidates Amid Global Trade War Fears; RIL at Record High

Today Equity News | Trade Nivesh


Asian stocks recoup morning losses to trade higher with Japan's Nikkei rising over half a percent.

The Nifty continues to remain in a range - the broader range for the overall direction of the markets is about 350 points. The support is at 10,550 and the resistance is at 10,900. We are vacillating within this range since the beginning of this month.

From a trading perspective the trimmed version of this range would be 10,700 - 10,850, a 150 points. This is usually not really a task for the index. However, these are testing times and a trader must be cautious on these levels being respected.
The good news however is that a one sided move would be expected if either levels are crossed which would then promise a delightful trade.

India signs MOUs for early adoption of 5G: India signed three memoranda of understanding with three top UK academic institutions to facilitate meaningful exploration and early adoption of 5G technology.

The MOUs were signed between representatives of King's College, University of Surrey, University of Bristol and Vipin Tyagi, Executive Director of C-DOT, a government-owned body engaged in research and development in the field of telecommunications in India. 

The agreements were signed at the India House in presence of India's minister of state for communications Manoj Sinha and High Commissioner to the UK Y K Sinha.

SEBI Board Meet Agenda: The Securities and Exchange Board of India (SEBI) is likely to discuss proposed overhaul of governance norms for market infrastructure institutions as well as amendments to buyback and takeover norms tomorrow, a senior official said.

Other proposals, including reducing the cooling off period for former employees to one year and review of the watchdog's recruitment policy, are also on the agenda.

SEBI board will meet today in Mumbai where the proposal for overhauling regulations for ownership and governance of market infrastructure institutions (MIIs), including capping the tenure of chief executives of stock exchanges, are expected to be discussed, the official said.

The watchdog has been working on ways to deepen the capital market as well as attract more investors.

Market Update: The market continued to consolidate amid rising fears of a global trade war started by the world's largest two economies US and China.

The Nifty Midcap index underperformed frontliners, falling mildly while the sectoral trend remained mixed.

The 30-share BSE Sensex rose 23.19 points to 35,570.52 and the 50-share NSE Nifty gained 4.20 points at 10,776.20.
The market breadth is in favour of declines as about 1,069 shares slipped against 823 advancing shares on the BSE.

Wednesday, 20 June 2018

Nifty Reclaims 10,750 Mark; Bank Nifty, Metal Stocks Lead



Vedanta was the biggest gainer on the indices after falling for the last eight sessions, its longest losing streak in over three months.

Benchmark indices Sensex and Nifty rose after the US-China trade war led to a washout of the previous two sessions. 

Vedanta was the biggest gainer. The company has been falling straight over the last eight sessions, its longest losing streak in over three months.

The threat from US President Donald Trump for tariffs on an additional $200bn of Chinese goods is the latest in a series of potential trade war opening shots. Assets in emerging markets have been hit hard as the escalation in tensions coincides with steeper projections for US interest-rate increases.

At 11:45 AM, the BSE Sensex was trading at 35,455, up 169 points, while the NSE Nifty was trading at 10,756, up 45 points.

Broader indices, meanwhile, were also up, with the BSE mid-cap index up 0.36% at 15,872, and the BSE small-cap index trading up 0.37% at 16,675.

Vedanta (+2.07%), Reliance (+2.03%), Zee Entertainment (+2.00%), Cipla (+1.62%), and Axis Bank (+1.51%) were the top gainers on the NSE.

On the other hand, IOC (-1.72%), Hindustan Petroleum (-1.44%), Coal India (-1.41%), UPL (-1.39%), and BPCL (-1.21%) were the top losers on the NSE.

Buying activity was also seen in banking, auto, consumer durables, metal, healthcare, and finance, while capital goods and oil and gas were showing weakness on the BSE.

The INDIA VIX was down 3.40% at 12.4800.

Of the 2,084 stocks traded on the NSE, 643 declined, 970 advanced, and 430 remained unchanged on Wednesday.

A total of 14 stocks registered a fresh 52-week high in trade, while 75 stocks touched a new 52-week low on the NSE.

Tuesday, 19 June 2018

Private Bank Stocks Down; ICICI Bank Top Loser

Intraday Trading Tips  |  Trade Nivesh


 Most private bank stocks including ICICI Bank (down 1.33 per cent), IDFC Bank (down 1.30 per cent) and Federal Bank (down 1.01 per cent) were suffering losses during the first half of Tuesday's trade. 

Shares of controversy-hit ICICI Bank came under pressure after reports emerged that the bank's CEO Chanda Kochhar will proceed on leave to facilitate an independent investigation into charges of favouritism and impropriety while the group's life insurance head Sandeep Bakhshi will run the bank as its Chief Operating Officer. 

The Nifty Private Bank was trading 0.33 per cent down at 14,939 around 10:40 am. 

RBL Bank (down 0.78 per cent), IndusInd Bank (down 0.72 per cent), Axis BankNSE -0.66 % (down 0.70 per cent) and Kotak Mahindra Bank (down 0.26 per cent) were also among the losers. 

However, YES Bank (up 0.66 per cent) and HDFC Bank (up 0.21 per cent) were the two stocks in the index that were up around that time. 

Equity markets were in the negative territory, tracking weakness in global stocks as the trade conflict between the US and China intensified.  

Monday, 18 June 2018

Closing Bell: Nifty Ends tad Below 10,800 amid Trade war Tensions; ICICI Bank zooms

Stock Market Closing Bell | Trade Nivesh


Market Closing: Benchmark indices ended mildly lower after consolidation on Monday, even as global peers were under pressure on escalated trade war between the US and China.

The Sensex slipped 73.88 points to 35,548.26 and the Nifty declined 17.80 points to 10,799.90. About two shares declined for every share rising on the BSE.

Dr Reddy's Labs, Eicher Motors, Tata Motors, ICICI Bank, HPCL, BPCL and IOC were gainers.

Vedanta, Kotak Mahindra Bank, Infosys, Coal India and HUL were under pressure.

The Nifty Midcap index fell more than 80 points.
NIIT Technologies, Firstsource, Ashok Leyland, Sun TV, V-Guard, JSPL, Motherson Sumi, Karur Vysya Bank, Torrent Power, PC Jeweller, Everest Kanto, Balrampur Chini, IGL, Syndicate Bank, Andhra Bank and Manpasand Beverages fell up to 6 percent.

Bata, Relaxo Footwears, Liberty Shoes and Mirza International rallied up to 16 percent.

TVS Motor, Apollo Hospitals, Tata Global, Jubilant Foodworks and Dabur gained up to 3 percent.

Friday, 15 June 2018

Buy ICICI Securities, Target Rs 520: CLSA

CLSA | Trade Nivesh

CLSA has a buy call on ICICI Securities Ltd. with a target price of Rs 520.0 . The current market price of ICICI Securities Ltd. is Rs 363.75 Time period given by he house is a year when ICICI Securities Ltd. price can reach defined target. ICICI Securities Ltd., incorporated in 1995, is a midcap company with a market cap of Rs 11629.30 crore. 
Investment rationale by CLSA
ICICI Securities (I-Sec) is India’s leading equity brokerage with a 10% market share in clients and is among the top financial-product distributors. It benefits from the fictionalization of household savings and an ability to leverage parent ICICI Bank’s brand and reach. 

We project a 21% earnings Cagr over FY18-21, led by rising revenue and efficiencies. Risks include weak capital markets, tighter competition and regulation. The stock trades at a discount to global peers and offers a 3.3% dividend yield (FY19). We initiate with a BUY and Rs520 target. 

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