Sensex ends marginally lower, Nifty holds 10,400; PSU banks outperform

Photo: Shutterstock.com
Benchmark indices  pared gains to ended flat amid choppy trade on Tuesday dragged mainly by IT stocks.

The S&P BSE Sensex ended at 33,857, down 61 points while the broader Nifty50 index settled at 10,427, up 5 points.

India’s retail inflation eased to 4.44 per cent in February from 5.1 per cent in January, but remained above the 4 per cent medium-term target of the Reserve Bank of India.

IT stocks lead the decline dragged by Tata Consultancy Services, which posted its biggest intraday percentage fall since November 2016 after a term sheet showed that parent Tata Sons is set to sell a stake in the company.

Meanwhile, financial stocks gained, with the Nifty PSU bank index rising 2.3%. Punjab National Bank rose 3% and Andhra Bank gained 11%.

Globally, Asian stocks edged up on Tuesday with technology shares buoyed by gains in their Wall Street peers, but gains were limited ahead of US inflation data later in the day which could offer clues on the pace of interest rate rises this year.
(with wire inputs)


3:44 PM IST Nifty IT index ends 1.46% lower

3:39 PM IST Nifty PSU Bank index ends 2.33% higher

3:36 PM IST Sectoral Trend

3:35 PM IST BSE Sensex gainers and losers

3:33 PM IST Market at close   The S&P BSE Sensex ended at 33,857, down 61 points while the broader Nifty50 index settled at 10,427, up 5 points.

3:23 PM IST Reliance Securities on Majesco Limited   The company reported strong 3QFY18 results, with revenue rising 4.7% QoQ in USD terms, led by strong order book growth seen in FY18 YTD; cloud revenue rose 5.1% QoQ, aided by investments made, while License revenue grew by a massive 127% QoQ led by new deal wins.    Good revenue growth drove a 345bps QoQ rise in EBITDA margin to 4.5%. Industry fundamentals and the key IBM partnership will enable Majesco to boost revenue growth going forward.   Cloud offering - ‘Trump Card’: 60-70% of the deal pipeline in the past few months has been for cloud services. Of the addressable market of US$25bn for Majesco, around US$15-16bn relates to the L&A market, while US$9.25bn relates to the US P&C market. ​​We currently have a target price of Rs 730 on the stock.

3:12 PM IST IPO WATCH   Bandhan Bank Limited - Subscribe Issue Opens: 15-Mar-18, Issue Closes: 19-Mar-18, Price Band: Rs370-375   Bandhan Bank was able to ride the recent MFI crisis smoothly unlike NBFC-MFIs. So in the current form, it is a robust and resilient micro loan financier with great growth prospects. The bank would likely be able to sustain RoA and RoE near the 4% and 25% mark respectively. We believe long term investors would find post-money valuation at 4.8x P/BV reasonably attractive. A comparable benchmark for valuation would be the recent IndusInd Bank-Bharat Fin transaction wherein the former valued the latter at ~5.2x FY18 P/BV.    (Source: IIFL Report)

3:01 PM IST PSU banks surge. Don't rush to buy the shares on a bounce, caution analysts Shares of public sector banks (PSBs) bounced back on Tuesday with Bank of India surging 14 per cent on reports of recovery of Rs 70 billion in non-performing assets (NPAs). The rub-off effect was seen across the board as Nifty PSU Bank index, the largest gainer among sectoral indices, gained five per cent compared to around 0.35 per cent rise in the Nifty 50 index in intra-day deals. READ MORE  

2:53 PM IST Emkay Global on HEG   We recently met the HEG Ltd management to understand the recent developments in the Graphite Electrode (GE) industry and to gain insights into the company. We foresee further scope for improvement.   HEG's debt has dropped to Rs2bn, which is likely to be NIL in Q4FY18 itself. The company has been evaluating capacity expansion by 20ktpa depending on Needle Coke availability. Growth and diversification are also options for cash usage.   Technology deterrence, physical set-up barrier and limited Needle Coke supply will restrict any new capacity addition at least for next 2-3 years. Therefore, we believe both offtake and realization will continue to be robust and sustainable for the next few years. 

2:44 PM IST Buzzing stock   GAIL (India) Ltd is up 20.53% in last one year as compared to a 15.11% spurt in NIFTY and a 21.61% spurt in the Nifty Energy index.

2:31 PM IST Bajaj Electricals hits record high; zooms 111% in one year   Bajaj Electricals hit a record high of Rs 624, up 8.6% on the BSE in noon deal, surpassing its previous high of Rs 585 recorded on January 5, 2018 in intra-day trade.   The company engaged in household appliances business has outperformed the market by surging 111% in past one year, as compared to 17.5% rise in the S&P BSE Sensex. Since February 7, 2018, after December quarter (Q3FY18) results, it rallied 28% against 0.18% decline in the benchmark index. READ MORE

2:22 PM IST Europe Trade European equities opened mixed, as investors monitored corporate earnings and awaited the release of US inflation data later in the day.   The pan-European Stoxx 600 was little changed from the previous session shortly after the opening bell, with sectors and major bourses pointing in opposite directions.

LIVE UPDATES

Nifty IT index ends 1.46% lower


Nifty PSU Bank index ends 2.33% higher


Sectoral Trend


BSE Sensex gainers and losers


Market at close
 
The S&P BSE Sensex ended at 33,857, down 61 points while the broader Nifty50 index settled at 10,427, up 5 points.
Reliance Securities on Majesco Limited
 
The company reported strong 3QFY18 results, with revenue rising 4.7% QoQ in USD terms, led by strong order book growth seen in FY18 YTD; cloud revenue rose 5.1% QoQ, aided by investments made, while License revenue grew by a massive 127% QoQ led by new deal wins. 
 
Good revenue growth drove a 345bps QoQ rise in EBITDA margin to 4.5%. Industry fundamentals and the key IBM partnership will enable Majesco to boost revenue growth going forward.
 
Cloud offering - ‘Trump Card’: 60-70% of the deal pipeline in the past few months has been for cloud services. Of the addressable market of US$25bn for Majesco, around US$15-16bn relates to the L&A market, while US$9.25bn relates to the US P&C market. ​​We currently have a target price of Rs 730 on the stock.
IPO WATCH
 
Bandhan Bank Limited - Subscribe
Issue Opens: 15-Mar-18, Issue Closes: 19-Mar-18, Price Band: Rs370-375
 
Bandhan Bank was able to ride the recent MFI crisis smoothly unlike NBFC-MFIs. So in the current form, it is a robust and resilient micro loan financier with great growth prospects. The bank would likely be able to sustain RoA and RoE near the 4% and 25% mark respectively. We believe long term investors would find post-money valuation at 4.8x P/BV reasonably attractive. A comparable benchmark for valuation would be the recent IndusInd Bank-Bharat Fin transaction wherein the former valued the latter at ~5.2x FY18 P/BV. 
 
(Source: IIFL Report)
PSU banks surge. Don't rush to buy the shares on a bounce, caution analysts

Shares of public sector banks (PSBs) bounced back on Tuesday with Bank of India surging 14 per cent on reports of recovery of Rs 70 billion in non-performing assets (NPAs). The rub-off effect was seen across the board as Nifty PSU Bank index, the largest gainer among sectoral indices, gained five per cent compared to around 0.35 per cent rise in the Nifty 50 index in intra-day deals. READ MORE
 
Emkay Global on HEG
 
We recently met the HEG Ltd management to understand the recent developments in the Graphite Electrode (GE) industry and to gain insights into the company. We foresee further scope for improvement.
 
HEG's debt has dropped to Rs2bn, which is likely to be NIL in Q4FY18 itself. The company has been evaluating capacity expansion by 20ktpa depending on Needle Coke availability. Growth and diversification are also options for cash usage.
 
Technology deterrence, physical set-up barrier and limited Needle Coke supply will restrict any new capacity addition at least for next 2-3 years. Therefore, we believe both offtake and realization will continue to be robust and sustainable for the next few years. 
Buzzing stock
 
GAIL (India) Ltd is up 20.53% in last one year as compared to a 15.11% spurt in NIFTY and a 21.61% spurt in the Nifty Energy index.
Bajaj Electricals hits record high; zooms 111% in one year
 
Bajaj Electricals hit a record high of Rs 624, up 8.6% on the BSE in noon deal, surpassing its previous high of Rs 585 recorded on January 5, 2018 in intra-day trade.
 
The company engaged in household appliances business has outperformed the market by surging 111% in past one year, as compared to 17.5% rise in the S&P BSE Sensex. Since February 7, 2018, after December quarter (Q3FY18) results, it rallied 28% against 0.18% decline in the benchmark index. READ MORE
Europe Trade

European equities opened mixed, as investors monitored corporate earnings and awaited the release of US inflation data later in the day.
 
The pan-European Stoxx 600 was little changed from the previous session shortly after the opening bell, with sectors and major bourses pointing in opposite directions.
InterGlobe Aviation skids on report DGCA grounds A320neo aircraft
 
InterGlobe Aviation fell 1.62% to Rs 1,256.45 on BSE after India's aviation regulator reportedly grounded the company's eight A320Neo planes with faulty Pratt & Whitney engines.

 
Market Check

 
S&P BSE Sensex 33,900.85 -0.05%
 
Nifty 50 10,464.45 0.41%
 
S&P BSE 200 4,544.55 0.29%
 
Nifty 500 9,190.15 0.75%
 
S&P BSE Mid-Cap 16,247.24 0.86%
 
S&P BSE Small-Cap 17,603.18 1.15%

MRF Ltd gained for a third straight session today

MRF Ltd gained for a third straight session today. The stock is quoting at Rs 71,960, up 1.22% on the NSE. READ MORE
NEWS WATCH Input commodity inflation to keep Vedanta's aluminium making cost high

An uptrend in the prices of key ingredients is set to exert pressure on Vedanta’s cost of manufacturing aluminium. Though a tad lower than its Q3 cost of $1,945 per tonne, Vedanta’s aluminium manufacturing cost is expected to be in the band of $1,850-1,900 a tonne in the January-March quarter or Q4 of this fiscal.  READ MORE

Easing inflation will give RBI room to hold rates, relieve bond investors
 
India’s inflation rate dropped below 5 per cent for the first time in three months, giving the central bank room to keep interest rates on hold for longer while providing relief to battered bond investors.
 
Government data on Monday showed inflation at 4.44 per cent in February, lower than the 5.07 per cent pace in January and below the 4.7 per cent estimate of economists polled by Bloomberg News. The easing for the second straight month offers bond investors in India -- the worst performing market among major Asian economies -- something of a temporary cheer. The benchmark 10-year bond yield fell three basis points to 7.60 per cent. READ MORE
Nifty PSU Bank index up nearly 5%


Bharat Dynamics IPO opens at Rs 413-428 a share: Should you subscribe?

State-owned Bharat Dynamics has opened its initial public offering for subscription on Tuesday, with a price band of Rs 413-428 per share. The IPO of 22,451,953 equity shares is an an offer for sale by the promoter, The President of India, acting through the Ministry of Defence.
 
The company has reserved a portion of 458,203 equity shares for allotment to eligible employees. The issue will close on March 15. Employees and retail investors will get shares at a discount of Rs 10 per share on offer price. READ MORE

Easing inflation will give RBI room to hold rates, relieve bond investors

India’s inflation rate dropped below 5 per cent for the first time in three months, giving the central bank room to keep interest rates on hold for longer while providing relief to battered bond investors. READ MORE
Graphite India, HEG rise for second straight day, up 5%

Shares of graphite electrode (GE) manufactures such as Graphite India and HEG were trading higher for the second straight day on expectations of a strong demand which is likely to push up GE prices for at least 2-3 years.
 
Graphite India is locked in upper circuit for the second straight day, up 5% at Rs 709 on the BSE. HEG too up 5% at Rs 2,813, extending its previous day’s 4.5% gain. READ MORE

Fund managers buy 1.7 mn PNB shares in Feb despite 40% slump in price

Many mutual fund (MF) managers added shares of fraud-hit Punjab National Bank (PNB) to their portfolios in February, amid a 40 per cent slide in the counter. A total of 1.7 million shares of the state-owned bank were added by equity MFs, data shows.
 
Put together, the number of shares in fund managers’ holdings, by end-February was 233.8 million, against 232.1 million at end-January. READ MORE

Shares of sugar companies fall by up to 75% due to a sharp fall in prices

Shares of sugar companies have fallen by up to 75 per cent over the past year, due to a sharp fall in prices of the commodity in physical markets.

Mills have been making distress sales since the beginning of the current season in October 2017 to clear farmers' cane payment arrears. A minimum storage limit and lack of export initiatives have been other problems in coping with overproduction. READ MORE

Market Check

 
S&P BSE Sensex 34,018.69 0.30%
 
Nifty 50 10,450.70 0.28%
 
S&P BSE 200 4,557.11 0.57%
 
Nifty 500 9,166.50 0.49%
 
S&P BSE Mid-Cap 16,260.89 0.95%
 
S&P BSE Small-Cap 17,596.47 1.11%

Paytm to launch mutual funds, insurance, banking services via payments bank

Mobile-first fintech major Paytm is planning a major push in the financial services sector. In the next few months, the Vijay Shekhar Sharma-led company is planning to launch services including mutual funds, general insurance, life insurance and a number of banking services via its payments bank. READ MORE
NEWS IMPACT IndiGo, GoAir cancel 70 flights today over DGCA's aircraft grounding order

IndiGo and Go Air cancelled around 70 flights on Tuesday as the two airlines grapple with aircraft grounding by aviation regulator Directorate General of Civil Aviation (DGCA). IndiGo cancelled around 50 flights, whereas Go Air cancelled 20 flights. The airlines said the affected passengers will be accommodated in other aircraft but there will be a change in their schedule READ MORE



BS SPECIAL LTCG: Should investors re-look at their equity investing strategy in FY19?

The domestic equity market is known for solid wealth creation in the long term, spanning over one to three years. In the past, those equity investors who picked up stocks successfully and also waited beyond a year got not only the opportunity for a significant wealth creation but also complete tax exemption on long-term capital gains. There was a significant incentive to hold the equities beyond a year as that would help avoid short-term capital gains tax at a 15 per cent rate READ MORE
Bank of India gains 11% on reports of Rs 70-billion recovery worth SLOCs
 
Bank of India has gained 11% to Rs 105 on the BSE in early morning trade on reports of the state-owned bank recovered Rs 70-billion worth Standby Letters of Credit (SLOCs) in the last two months.
 
The balance of Rs 20-billion would be recovered in another two months. The total recovery will substantially improve the Bank's balance sheet; the PTI report suggested quoting Bank of India Executive Director N Damodharan. READ MORE
Bond market outlook

Improved macro-economic conditions have nudged 10Y India yields off highs, but we suspect that the rally in bonds may not have much further to go. With appetite subdued from domestic (particularly public-sector banks) and foreign players (further increases in debt limits appear unlikely), 10Y yields are likely to find some support at 7.5%. We maintain that yields are likely to edge higher in the new fiscal year - when the centre’s borrowing plans become clearer and fiscal costs get factored in

(Source: Radhika Rao, India Economist, DBS Bank)
Sebi is doing a rethink on its trading plans and may even scrap them
 
The Securities and Exchange Board India (Sebi) is doing a rethink on its trading plans that were introduced under the Sebi (Prohibition of Insider Trading) Regulations, 2015. One of the options being considered is to scrap the plans altogether. The concept has not taken off in earnest, with few companies stepping forward to formulate these plans since it was introduced more than two-and-a-half years ago. There are several guidelines that have made these plans unpopular. For instance, the trading plan has to cover a period of at least 12 months and cannot be altered once disclosed. READ MORE
Airtel stock: Valuations, ability to manage debt are investment arguments

While the sector is likely to face some pressure over the next couple of quarters following Reliance Jio’s pricing action in January, analysts said Airtel is best positioned to benefit once the declining trend of revenues reverses in the second half of FY19. Analysts at Morgan Stanley said there was a low probability of Jio taking further price cuts in its 4G smartphone plans. CLICK HERE TO READ MORE


India's equity market-cap to hit $6.1 trillion by 2027: Morgan Stanley

Market-capitalisation (market-cap) of Indian equities is likely to hit $6.1 trillion by 2027, up from $2.3 trillion in 2017, predicts Morgan Stanley in its recent Asian equity Strategy Report titled: Asia’s Financial Acceleration – Moving Centre Stage.
 
“Within the Asian region, India's equity market is expected to grow the fastest of the major markets at 10.1 per cent compounded annual growth rate (CAGR), reaching $6.1 trillion by 2027. Market-cap of China/Hong Kong equities combined will increase at a 7.9 per cent CAGR from $13.8 trillion currently to $30 trillion, almost the current size of US equity market-cap of $31 trillion. Japan would be the next largest equity market at $8 trillion,” the Morgan Stanley report co-authored by Jonathan Garner, their chief Asia & emerging markets equity strategist says READ MORE
Photo: Shutterstock

Claris Lifesciences shares to delist from BSE on March 22

Claris Lifesciences, Ahmedabad-based pure play injectables player, will be delisted from the BSE, effective March 22, the company said on Monday. The pharma company’s shares will stop trading from March 15.
 
The company is not listed on the National Stock Exchange. The company had applied for delisting of equity shares on February 26, 2018, it said in a statement. In December, the company had received a letter from promoter Athanas Enterprise to consider delisting of its shares READ MORE
CPI inflation to pick-up in FY18: UBS
 
We estimate headline CPI inflation to pick-up over the next few months and average close to 4.7% YoY in FY19 (vs. 3.6%YoY estimated in FY18), with inflation higher in 1H than in 2H. In our base case, we still expect the MPC to keep rates on hold in FY19. That said, if the risks discussed below materialize, we do not rule out a pre-emptive 50bps hike over the next 12-months to ensure macro stability risks are contained.
Market Check

 
S&P BSE Sensex 33,963.00 0.13%
 
Nifty 50 10,426.10 0.05%
 
S&P BSE 200 4,546.45 0.34%
 
Nifty 500 9,140.95 0.21%
 
S&P BSE Mid-Cap 16,233.48 0.78%
 
S&P BSE Small-Cap 17,532.80 0.74%

Tata Sons sells 1.5% stake in TCS; stock falls 6%

Tata Consultancy Services (TCS) dipped 6% to Rs 2,872 on the National Stock Exchange (NSE) after the promoter Tata Sons sold around 1.5% stake in information technology (IT) major through block deals. READ MORE
BSE Smallcap: Jaiprakash Power Ventures, Indian Metals & Ferro Alloys among top gainers, GTL Infrastructure top loser


BSE Midcap: Bank of India, Oberoi Realty among top gainers, Adani Enterprises top loser


Financial sector stocks rally

COMPANY LATEST() CHG() CHG(%) VOLUME
IDBI BANK 65.40 0.70 1.08 1182236
BANK OF INDIA 103.60 8.50 8.94 1022316
PUNJAB NATL.BANK 96.30 1.70 1.80 699436
ANDHRA BANK 38.40 2.55 7.11 560497
ST BK OF INDIA 255.20 2.35 0.93 301152

NEWS IMPACT Bank of India recovers NPAs woth Rs 7,000 crore: Reports


STOCKS IN NEWS

TCS: Tata Sons to sell up to 1.48 percent stake in TCS via Block Trades to raise USD 1.2 billion at Rs 2,872-2,925 apiece

Reliance Communications: NCLT extends stay on company's arm asset sale till further orders

Interglobe Aviation: Directorate General of Civil Aviation (DGCA) has asked IndiGo and GoAir to ground 8 and 11 A320 neo planes, respectively

JSW Steel: Fund raising of USD 1 billion through overseas bonds to buy distressed assets

JSPL board to consider QIP issue on 16th March, Friday

Andhra Bank says fund-based exposure to Sterling Group at Rs 578 cr

Power Grid inks pact with SBI for Rs 5,000 cr loan

BoI has recovered Rs 7000 cr worth SLOCs from other banks

ACC and Ambuja Cements to enter into master supply agreement

HFCL to build Rs 260-cr optical fibre plant in Telangana

SBI to take 5 companies to NCLT for Rs 3250cr

NBCC India says no charges proved against chairman Mittal After CBI probe

Radha Madhav Corporation Ltd To Issue 41,50,000 Equity Shares on Preferential Basis to Non - Promoters. & To Issue 2,28,25,000 Convertible Warrants on Preferential Basis to Promoter and Non-Promoter

Bata India: Sebi has directed Bata on Monday to conduct an inquiry into the leak of price-sensitive financial information.The regulator has asked the company to take action against those responsible for the leak and strengthen its internal processes. 

(Source: Nirmal Bang)
Tata Sons sell $1.25bn TCS shares

Stock Impact


TCS drags Nifty IT index


Sectoral Trend


Sensex Heatmap

Markets at Open

At 9:16 am, the S&P BSE Sensex was trading at 33,818, down 99 points hwile the broader Nifty50 index was ruling at 10,391, down 29 points
Stocks in News
 
Bharti Airtel: Tanzania begins talks with Bharti on local unit stake row
 
Tata Consultancy: Tata Sons to sell $1.25b of TCS shares
 
Bharat Dynamics IPO to open today.
 
Sun TV declares fourth interim dividend of Rs 2.50 per equity share for FY2017-18.
 
NCLT extends stay on RCOM's arm asset sale till further orders
 
(Source: Geogit Financial Services)
Currency watch (Image source: Motilal Oswal Research)


Technical check on the markets (Image source: Geojit)



Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 33,868.51 -49.43 -0.15
 
S&P BSE SENSEX 50 10,877.44 -1.75 -0.02
 
S&P BSE SENSEX Next 50 33,011.93 +52.02 +0.16
 
S&P BSE 100 10,752.31 +1.13 +0.01
 
S&P BSE Bharat 22 Index 3,562.25 +8.03 +0.23

(Source: BSE)
Corporate Development

INFOSYS
announced its intention to voluntarily delist its American Depositary Shares ("ADS") from the Euronext Paris and Euronext London exchanges. The primary reason for seeking the proposed delisting is the low average daily trading volume of Infosys ADS on these exchanges, which is not commensurate with the related administrative requirements. There will be no change to the Infosys share/ADS count, capital structure and float, as a result of the proposed delisting from the above exchanges. Infosys ADS will continue to be listed on the NYSE under the symbol "INFY" and investors can continue to trade their ADS on the NYSE as before

(Source: Equinomics Research)
COMMENT ON ECONOMIC DATA Dhananjay Sinha, Head, Institutional Research, Economist and Strategist, Emkay Global

Taking into consideration the lower food inflation and higher core rural inflation, we believe that the rural distress has not yet abated completely. We revise our Q4FY18 CPI average to 4.7% yoy on lower-than-expected food inflation. However, sticky core inflation might prompt RBI to withdraw its Aug’17 25bps rate cut
COMMENT ON CPI DATA Radhika Rao, India Economist, DBS Bank

The recent economic data will be a positive catalyst for the markets in the near-term. Inflation has eased for the second consecutive month in February, raising downside risks to the RBI's projection for March 2018 quarter. Core inflation was relatively flat. This lowers pressure on the central bank to shift gears to a hawkish stance at the April review, with a similar tune likely to extend into June. FY19 numbers will largely be rangebound between 4.5-5%, providing the headroom to keep rates on hold in 2018. Clarity will be sought on the MSP increases, oil price direction, market/rupee volatilty and health of demand indicators. Yields are likely to enjoy a short-term relief, helped also by RBI's liquidity injection to meet end-quarter/ end-fiscal year squeeze
Sebi moots 'surge charges' on members with high order-to-trade ratio

The Securities and Exchange Board of India (Sebi) is mooting to impose high transaction charges on brokers or trading members availing the co-location facility at stock exchanges. Access to co-location servers allows faster access to trade data. Typically, it is used for algorithm-based trading, also known as high frequency trading (HFT). READ MORE
Strong start for IIP in 2018: Crisil
 
The Index of Industrial Production (IIP) continued its momentum printing at 7.5% on-year in January 2018 compared with 7.1% growth in December 2017. The third straight month of strong growth was supported by the manufacturing and electricity sectors. The strengthening of the manufacturing sector for the second month in a row signals that industry is bouncing back from GST-related glitches and could be on track to reap the benefits of domestic and global growth recovery
India's equity market-cap to hit $6.1 trillion by 2027: Morgan Stanley

Market-capitalisation (market-cap) of Indian equities is likely to hit $6.1 trillion by 2027, up from $2.3 trillion in 2017, predicts Morgan Stanley in its recent Asian equity Strategy Report titled: Asia’s Financial Acceleration – Moving Centre Stage. READ MORE
IIP rises to 7.5% in Jan, retail inflation eases to 4-month low of 4.4%

Industrial activity expanded 7.5 per cent in January, up from 7.1 per cent in December. This is the third straight month that industrial output has expanded by more than 7 per cent, suggesting economic activity is gaining as the effects of demonetisation and the goods and services tax (GST) dissipate. READ MORE
Top trading ideas for the day

BUY HDFC LTD
CMP : Rs 1858.05
TARGET : Rs 2000
STOP LOSS : Rs 1770

The stock has made a more or less double bottom formation in the daily chart at around 1760 levels and has recovered significantly to give a breakout above the peak of 1850 and has indicated a positive bias with more further upside potential to scale.
 
The RSI has shown a steep rise from the oversold zone to indicate strength and with consistent volume activity seen, we recommend a buy in this stock for an upside target of 2000 keeping a stop loss of 1770. CLICK HERE TO READ MORE
Nifty outlook by Prabhudas Lilladher for the day

The daily trend in Nifty & Bank Nifty has turned positive after 5 and 6 days respectively. This would still be considered a bounce back rally after Nifty respecting the support of 200dma, a decisive move past 10,440 would give further targets of 10,500-10,600 levels. Private sector banks would still be a good buy compared to PSU, also FMCG sector with ITC, HUL look positive for days to come. The support for the day is seen at 10,360 while resistance is seen at 10,480.
Markets on Monday

 
S&P BSE Sensex 33,917.94 1.83%
 
Nifty 50 10,421.40 1.90%
 
S&P BSE 200 4,531.26 1.56%
 
Nifty 500 9,121.75 1.51%
 
S&P BSE Mid-Cap 16,108.27 0.76%
 
S&P BSE Small-Cap 17,403.29 0.56%

SGX Nifty

The SGX Nifty was trading at 10,414.50, down 0.17% from the previous close.
Asian Markets

MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed. The index had surged 1.5 percent on Monday. Japan’s Nikkei shed 0.2%, while Shanghai dipped 0.1%. South Korea’s KOSPI was effectively flat.
Wall Street

On Wall Street, the Dow Jones Industrial Average fell 157.13 points, or 0.6%, to 25,178.61 on Monday. The S&P 500 index fell 3.55 points, or 0.1%, to 2,783.02. The technology-laden Nasdaq Composite Index was up 27.51 points, or 0.4%, to 7,588.32.
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