Stock Market closing: Sensex over 190 points, Nifty sustains 11,000 levels; All sectors close green except Auto
Technically, till the time Nifty trades above 10580 the bias remains positive and individual stocks might continue to outperform.
Extending its Tuesday rally in the early session on Wednesday, the Indian indices advance further. The BSE Sensex closed 193 points upside to 36,636 levels while the 50-stock Nifty regained psychological 11,000 levels by adding 65 points in its Wednesday close. The Bank Nifty closed 71.60 points up to 27,625.65, While all the major sectors closed green, except Auto. However, the market experts are still saying that the investors are awaiting fresh cues from the Sino-US trade talks.
Commenting upon the current market trends, IndiaNivesh research team informed in a written statement, "Technically, at this juncture, we continue to mention that till the time Nifty trades above 10580 the bias remains positive and individual stocks might continue to outperform. Also, due to the ongoing geopolitical issues; we expect the index to trade within the range of 10580 - 11000. Any move on either side of the range shall now dictate the further trend. Traders who initiated long in index futures near 10650 should follow strict stop of 10700 for the upside target of 11000 and above. On the downside 10720 – 10640 zone might again attract some buying interest. A move below the same might dwell the ongoing momentum."
Watch Zee Business Live TV streaming below:
Sensex, Nifty consolidate its early gains
Extending its Tuesday rally in the early session on Wednesday, the Indian indices advance further. The BSE Sensex rose 187 points to 36,630 levels while the 50-stock Nifty regained psychological 11,000 levels by adding 60 points in its Tuesday close.
Realty stocks join Dalal Street rally
After showing a cautious trend in the early hour of the intraday trade on Wednesday, the BSE Realty index added over 1 per cent. The index major Sunteck Realty Ltd scaled around 5.1 per cent, shares of Housing Development & Infrastructure Ltd went northward by 5.35 per cent, Indiabulls Real Estate counter surge around 7.9 per cent while DLF scrip went up by more than 1 per cent.
Midcaps at the cusp of recovery, says Elara Securities
Feb’19 saw market corrections and increased volatility, with broader markets taking a deeper cut (Nifty Midcap fell 6.5% while Nifty fell 0.6%) among others, due to: (a) Indo-Pak tensions; (b) reduced GDP growth outlook; (c) widening fiscal deficit
Globally, post the Fed’s pivot towards a dovish stance, other central banks have followed suit, including the European Central Bank, Bank of England and Bank of Japan. In a challenging global growth environment, this coupled with recent optimism over US-China trade deal, provided comfort.
"We expect heightened volatility to continue over the short term and the market to be range-bound with a downward bias," informed Elara Securities in a detail research report.
Nifty margin to improve; EPS to decline marginally
Effective 1st April, 2019, HPCL will get replaced by Britannia in Nifty 50 which will lead to an increase in operating margins and a decline in net income for Nifty – (a) EBITDA margin improves from 15.1% to 15.7% in FY20 & from 15.8% to 16.4% in FY21; (b) Nifty FY20 EPS to decline from Rs 508 to Rs 503 and FY21 EPS to decline from Rs 627 to Rs 620; (c) Return on equity (ROE) to remain in same at 11.9% in FY20 and marginally dip from 13.1% to 13% in FY21.
Economy slows amidst worsening fiscal deficit
Q3FY19 GDP came in at a five-quarter low of 6.6% (against 7 .7% in Q2FY19). While the lower GDP can partly be attributed to a higher base (revised higher to 7.2% against an earlier estimate of 6.5%), the key concern continues to be a deflationary impact on food prices. Fiscal deficit in Jan’19 at Rs 7.7 tn was 121.5% of the full-year estimate. Implementation of Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) with immediate effect (an impact of Rs 750 bn per year) will add to the worsening fiscal situation.
Adding to near term uncertainties, the slower government spending and the consequent slowdown in economic activity and ominous signs of fall in consumption spending is likely to roil the markets. The pro-growth nature of budget 2019 coupled with election spending triggered consumption is likely to spur growth and therefore we reiterate our growth estimate of 7.5% in FY’20.
Midcap revival on the cards
The relative valuation of midcaps vs large caps is at a historically low level, with 7 DMAs at 2014 levels. Moreover, the rolling 1-year return difference between midcap and large caps are at a historical extreme of -22% vs average of 4.4%. We believe valuations are compelling at these levels for a revival in the performance of midcaps, particularly the quality midcaps which have also taken a substantial beating.
Infra gains add fuel to Indian indices rally
Adding fuel to the Dalal Street's early gains of near 130 points helping Nifty to regain psychological 11,000 levels, the BSE Infra index added around 1.15 per cent from its Tuesday close. The infra major Dilip Buildcon Ltd emerge show stopper by skyrocketing over 9 per cent from its previous close, shares of NBCC (India) scaled over 6 per cent, Reliance Infra stock added over 5.5 per cent, Tata Communications Ltd couner went up by around 3.6 per cent, Tata Power shares rose by around 2.5 per cent while Adani Ports & Special Economic Zone Ltd counter went up by more than 2 per cent.
Telecom index lead the Dalal Street rally
Leading the rally at Dalal Street, the BSE Telecom index added near 1.6 per cent from its previous close. The index major ITI and GTL added more than 4 per cent, shares of GTL Infra went up by around 3.8 per cent, Bharti Infratel went up by around 2.35 per cent, GTPL Hathway counter scaled around 1.8 per cent, MTNL stock added 2.8 per cent, OnMobile Global counter was up by more than 1.5 per cent, Sterlite Technologies scrip was up by 2 per cent, Tata Communications shares rose around 2.9 per cent, Tata Teleservices (Maharashtra) counter scaled by 3.58 per cent while Bharti Aritel rose by near 1 per cent.
Opening Bell: Sensex rises over 100 points, Nifty regains 11,000 levels
Extending its Tuesday rally in early session on Wednesday, the Indian indices advances further. The BSE Sensex rose 136 points to 36,579 levels while the 50-stock Nifty regained psychological 11,000 levels by adding 47 points in its Tuesdat close. The S&P BSE SENSEX 50 rose 52 points, S&P BSE 100 went up 54 points and S&P BSE Bharat Index went northward by 31 points. However, the market experts are still saying that the investors are awaiting fresh cues from the Sino-US trade talks.
Nifty regains 11,000 levels in pre-open session
Extending its Tuesday rally in pre-open session on Wednesday, the Indian indices advance further. The 50-stock Nifty index rose 37 points to 11,024 levels.
Sensex, Nifty rise in pre-open session
Extending its Tuesday rally in pre-open session on Wednesday, the Indian indices advance further. The BSE Sensex rose 140 points to 36,582 levels while S&P BSE SENSEX 50 rose 40 points, S&P BSE 100 went up 39 points and S&P BSE Bharat 22 Index went northward by 16 points. However, the market experts are still saying that the investors are awaiting fresh cues from the Sino-US trade talks.
Asian stocks trade range-bound
Asian stocks clung to tight ranges on Wednesday, as investors awaited fresh directional cues from US-China trade negotiations and a weaker Wall Street finish capped broader gains, while robust US economic data supported the dollar. MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed. Australian stocks added 0.2 percent while Japan`s Nikkei declined 0.5 percent. Wall Street dipped on Tuesday as a drop in General Electric shares countered positive retailer earnings and investors eyed a key resistance level for the benchmark S&P 500 after the market`s run to a five-month peak on Monday.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.