Friday, 4 May 2018

Nifty, Sensex Showing Signs of Fatigue – Weekly closing report-The Total Investment & Insurance Solutions


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4 May 2018

I had mentioned in last week’s closing report that the market has entered a round of rally. The major indices of the Indian stock markets were range-bound during the week and closed on Friday with small weekly losses over last Friday’s close. The trends of the major indices in the course of the week’s trading are given in the table below: The Total Investment & Insurance Solutions

The major indices of the Indian stock markets made a small rally on Monday and closed with gains over Friday’s close. On the NSE, there were 799 advances, 648 declines and 42 unchanged. The Total Investment & Insurance Solutions

The key Indian equity indices traded higher on Monday, tracking firm cues from Asian indices. Buying was witnessed in the IT (information technology), banking and capital goods stocks. The Total Investment & Insurance Solutions

Most Indian industry sectors have reported negative growth in deployment of gross bank credit, a fallout of banks' inability to lend being saddled with mammoth non-performing assets (NPA), or bad loans, coupled with lack of appetite for fresh investment by highly indebted corporate India, industry body Assocham said on Sunday. The Total Investment & Insurance Solutions

Macro-economic data points, coupled with fourth quarter (Q4) earning results, were expected to influence the Indian equity markets during the past truncated week. According to market observers, the US Fed's open market committee meet along with the trajectory of global crude oil prices and the rupee's movement against the US dollar could have triggered volatility during the past week's trade sessions. The Total Investment & Insurance Solutions

Tuesday was a market holiday on account of Maharashtra Day.

The major indices of the Indian stock markets were range-bound on Wednesday and ended with minor losses over Monday’s close. On the NSE, there were 402 advances, 1,126 declines and 47 unchanged.

Healthy quarterly earnings and robust automobile sales pushed the key Indian equity indices to trade higher during Wednesday's mid-afternoon session. According to market observers, buying was witnessed in the banking, automobile and FMCG (fast moving consumer goods stocks). But the gains were not sustained till the end of trading at 3:30 pm and the markets ended on a flat-to-negative note. The Total Investment & Insurance Solutions

Asian equities eased on Wednesday, while the dollar traded near a four-month high as investors awaited the Federal Reserve's policy statement for clues on the future pace of U.S. monetary tightening, according to Reuters.

Budget passenger carrier SpiceJet launched daily direct flight services between Delhi and Punjab's Adampur. According to the company, SpiceJet was awarded Adampur under the first round of the regional connectivity scheme UDAN and the city is the fifth destination for the airline under this scheme. In addition to Adampur, SpiceJet also launched daily services between Leh and Delhi from Tuesday. The Total Investment & Insurance Solutions

Software major HCL Technologies on Wednesday reported Rs2,227 crore consolidated net profit for the fourth quarter of fiscal 2017-18, posting 4.3% annual decline from Rs2,325 crore in the same period year ago (2016-17) but up 1.5% sequentially from Rs2,194 crore quarter ago. Net profit, however, grew 3.8% year-on-year (YoY) to Rs8,780 crore for the fiscal under review (FY 2018) from Rs8,457 crore in FY 2017. In a regulatory filing to the BSE, the Noida-based IT firm said consolidated revenue grew 9.3% YoY to Rs13,179 crore for the quarter under review (Q4) from Rs12,053 crore in the like period year ago and 2.9% sequentially from Rs12,808 crore quarter ago. Revenue for FY 2018 grew 8.2% YoY to Rs50,570 crore from Rs46,723 crore in FY 2017. Under the International Financial Reporting Standard (IFRS), net profit for the quarter slipped 1.7% YoY to $344 million from $350 million year ago but grew 1.1% sequentially from $340 million quarter ago. Net profit, however, grew 7.7% YoY to $1,360 million for the fiscal from $1,262 million year ago while revenue grew 12.4% YoY to $7,838 million from $6,975 million year ago. Revenue for the fiscal (FY 2018) grew 12.2% YoY to $ 7,838 million from $6,975 million in FY 2017.

State-run Punjab National Bank (PNB) said that it will recover from the impact of the recent fraud in six months' time and is actively working to improve its internal systems by incorporating analytics and artificial intelligence (AI), as Niti Aayog CEO Amitabh Kant ruled out privatisation of banks.

The major indices of the Indian stock markets were range-bound on Thursday and closed with small losses over Wednesday’s close. On the NSE, there were 460 advances, 1,264 declines and 320 unchanged.

The key equity indices traded in the negative territory on Thursday following a decline in the global markets. Selling pressure on the capital goods, consumer durables and auto stocks also weighed on the indices. Asian shares opened in the red ahead of the Sino-US trade talks. The US Federal Reserve has held interest rates unchanged at its latest monetary policy review, while indicating that inflation in America was rising towards the central bank's medium-term target as a signal to investors of possible rate hikes later in 2018.

Demand for gold in India for January-March quarter (first quarter) of 2018 was down by 12% at 115.6 tonne compared to overall Q1 demand for 2017 due to rising gold prices, exaggerated by a weakening rupee, a World Gold Council statement said here on Thursday. The Total Investment & Insurance Solutions

Sugar production in the country crossed a record 31 million tonnes mark this year and the total production will be around 32 million tonnes when the season ends, the Indian Sugar Mills Association (ISMA) said on Thursday.

Budget passenger carrier IndiGo reported a decline of 73.3% in its net profit for the quarter ended March 31, 2018. According to the airline, the net profit during the quarter under review fell to Rs117.64 crore from Rs440.30 crore reported for the corresponding period of 2016-17. "Results include certain credits received from manufacturers to offset some of the impact of aircraft groundings and delivery delays," IndiGo said in a statement. However, the low-cost carrier's revenue from operations grew by 19.6% to Rs5,799.11 crore for the quarter ended March 2018 compared to the same period last year.

On Friday, the major indices of the Indian stock markets suffered a minor correction and closed with losses over Thursday’s close. On the NSE, there were 587 advances, 958 declines and 63 unchanged.

The key Indian equity indices closed lower on Friday following broadly negative global cues such as high crude oil prices and geo-political tensions in the Middle East. The Total Investment & Insurance Solutions

Housing finance company PNB Housing Finance reported a rise of 44% in its net profit for the quarter ended March 31, 2018. According to the company, the net profit during the quarter under review increased to Rs219.2 crore from Rs152.4 crore reported for the corresponding period of previous year. Besides, the housing finance firm's 'Net Interest Income' registered a growth of 36% to Rs451.8 crore from Rs332.7 crore. On the fiscal basis, the company reported a rise of 58% in its net profit for the financial year ended March 31, 2018 which increased to Rs829.4 crore from Rs523.7 crore reported for the previous corresponding period. "The cumulative provision for non-performing assets and standard assets is Rs42.3 crore and Rs281 crore respectively as on 31st March, 2018," the company said in a statement. "During the year, the company made provision for contingencies of Rs62.5 crore. The cumulative provision for contingencies is Rs102.0 crore, over and above the provisions required to be maintained as per NHB Directions." The company's Board recommended a final dividend of Rs9 per equity share of Rs10 for FY17-18. The company’s shares closed at Rs1,395.10, down 0.39% on the NSE, on Friday.

Castrol India reported a marginal rise of 2% in its net profit for the quarter ended March 31, 2018. According to the company, the net profit during the quarter under review increased to Rs181.8 crore from Rs179 crore reported for the corresponding period of previous year. Commenting on the results, Omer Dormen, Managing Director, Castrol India Limited said: "We continue to build momentum on our strong performance and we have been delivering consistent growth over the last two years.”  The company’s shares closed at Rs184.65, down 5.62% on the NSE, on Friday.The Total Investment & Insurance Solutions

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