News and Impact
Expect market to open on a flat to negative note. Weakness in the global markets may impact negative in the market. However, fall in oil price, USDINR and impressive India's macro data may boost the market sentiment. Tyre and Cement stocks may remain in focus ahead of tomorrow's GST council meeting on expectation of GST rate cut from 28% to 18%. OMC (HPCL, BPCL and IOC) will be big positive after Brent Crude fell to below $55/bbl and fall in USDINR. PSU Banks may limelight after the government announced to spend ~Rs830bn by March on bad loan clean-up and Rs1.06 lakh cr re-capitalization on PSU Banks.
US markets yesterday slipped 2% (450 points) to close 14-month low in concern of US-China trade war (media news that the US Govt. may arrest two Chinese people for Cyber hacking), poor economy data, fall in Dollar Index and US Fed hiked interest rate. Asian markets like Nikkei and Hong Kong Index slipped nearly 1% each. Yesterday, both Bank of England (BoE) and Bank of Japan (BoJ) kept unchanged interest rate. SGX Nifty currently down by 15 points.
Indian markets recovered smartly from the intra-day low yesterday despite a weakness in the global markets. FTSE 100 Index fell to 2-year low, US market lost entire 2018 gain (14 month low) and Asian leader Nikkei Index fell to 14-month low. Thanks to the strong domestic macro factors which have boosted the market sentiment like Brent Crude fall to 12-month low at below $55/bbl and USDINR fell to below 70 of two week low. Moreover, 17 months low inflation and impressive manufacturing data have a positive sentiment in the market. Traders buy on dips in the market. Mid-cap and small stocks are looking attractive because these sectors declined sharply in the past. Market expectation of good quarterly results by Mid-cap and Small cap stocks.
India to spend ~Rs83,000cr by March on bad loan clean-up - Parliamentary approval to spend an additional Rs41,000cr has been sought, Finance Minister Arun Jaitley said in New Delhi on Thursday. That takes the total infusion in state-run banks to Rs1.06 lakh cr rupees this fiscal year, he added – Partially cleanup balance sheet will be positive for PSU Banks like SBI, PNB and BoB.
Watch on Cement and Tyre stocks today - GST Council meeting will be held tomorrow. Expectation that the GST cut from 28% to 18%. - Positive for Cement and Tyre stocks
Brokers Radar – Credit Suisse – Neutral on Bharti Airtel TGT 335, CITY Neutral on Sun Pharma TGT 575, Nomura BUY ICICI Bank TGT 450
Watch on PSU Banks - Finance Ministers says FY19 bank recapitalization will be Rs1.06tn, Finance Minister says will give capital to better performing PCA banks, capital infusion to enhance lending capacity of banks.
Dhanuka Agritech final buy-back price at Rs550 a share (CMP 452) - Positive
Bandhan Bank to open five new branches in Delhi in December - Positive for Bandhan Bank, Few day's before RBI allowed the private bank to open new branches - Positive for Bandhan Bank
Tata Motors: Zoomcar to deploy 500 Tigor electric cars in Pune - Positive for Tata Motor, market expectation that the China may cut import duty from US. It will be positive for Tata JLR
Ashoka Buildcon receives declaration date for NHAI project - The accepted bid project cost is Rs16.87bn. The construction period of the project is 910 days from the appointed date, and the operation period is 15 years from the Commercial Operation Date (COD) - Positive
Dr Reddy’s Laboratories: Aquestive and Indivior said they would file a petition with the U.S. Court of Appeals for the Federal Circuit for hearing on the ruling to vacate the preliminary injunction that enjoined Dr. Reddy’s from launching its generic buprenorphine/naloxone sublingual film. – Expect negative for Reddy
Bharti Airtel’s board approved sale of up to 59.12 crore equity shares, representing 32 percent stake of Bharti Infratel owned by the company to its arm Nettle Infrastructure Investments. After the deal, Bharti Airtel to own 18.33 percent stake in its Infratel arm and Nettle Infrastructure Investments and the public will
By: via @AlliesFin Serve T.ME/ALLiESFiN
