Today’s Action:
Benchmark Indices started the day on a positive note and as the day progressed it held on to its momentum. The Sensex gained over 270 points, while the Nifty closes above 9,850, the broader indices outperformed the frontline indices.
Daily Market Review:
The Indian Market continues to climb higher tracking positive cues from the world indices. After a gruelling previous week, the markets made a strong comeback in the past two trading sessions. The equity indices started the day on a positive note and were trading range bound. However, near the close of the today’s trading session, both the Sensex and the Nifty extended its gain sharply to post a gain of 0.88% and 0.89% respectively.
The Nifty touched a high of 9,857.90 after opening at 9,803.05 and finally settled at 9,852.50 for the day. After opening at 31,407.47 the Sensex traded in the range of 31,379.25 to 31,593.39 points, it finally ended the day at 31,568.01.
Broader markets also put up a great show today, they beat the frontline indices with the Nifty Midcap and the Smallcap both posting a gain of 1.19% and 1.38%, respectively.
The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, gained 1.26% in today’s trading session.
Apart from Nifty FMCG all the sectors displayed some strength today, the top three performing sectors today were Nifty Realty, PSU Bank, and the Metal posting a gain of 3.44%, 2.09%, and 1.72%, respectively.
Investors continue to display subdued interest as was observed from lower volumes today. The Sensex dropped a distribution day today due to ageing and bringing down the total distribution day count for the Sensex to 7. With a distribution day count of 6 on Nifty, the market status is currently “Uptrend Under Pressure”.
In stock talk, Infosys gained 3% intraday after the buzz that Nandan Nilekani is likely to return to head the affairs of the Company. According to sources, clarity on his role at Infosys is expected in the next 48 hours.
The National Company Law Tribunal has recently started insolvency proceedings against Jaypee Infra due to incomplete projects. The Interim Resolution Professional (IRP) announced that The Cabinet today has given “in-principle approval’’ to the public sector banks to set up an alternative mechanism to complete the process of consolidation. The name of the banks proposed to be merged will be submitted to a group of ministers based on certain deciding factors such as geographical coverage, comparable asset quality and capital adequacy ratios.
From the results corner, Gati reported a threefold increase in its Q1 FY 2018 net profit, due to this the stock price surged 8% and touched an all-time high price of INR 156.65 intraday.
Tata Power’s Q1 FY 2018 profit jumps 329%, y/y to INR 142 crore. The business capacity of Tata Power crossed 2,000 MW and non- fossil fuel portfolio stood at 3,144 MW, an increase of 92% compared to last year. The tone of the management remained aggressive towards further investment in the renewable energy projects, the Company has become one of the largest renewable energy players in the last five years.
Current Outlook:
– Be cautious with any new purchases.
– Form a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules.
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