Daily Big Picture – Market Springs Back to Life, as North Korea Tensions Subside


MarketSmith India_William Oneil IndiaToday’s Action:

Optimism in the global markets lifted the Indian market. Broader markets too witnessed good traction in today’s trade.

Daily Market Review

The Indian market had a strong opening, tracking the Asian markets, which were trading in green. The global markets heaved a sigh of relief in the absence of a belligerent response from the U.S. and its allies after North Korea had fired a missile over Japan. Buyers were quick to latch on to opportunities after yesterday’s market decline, and the headline indices ended the day with significant gains.

Today, the Nifty opened higher at 9,859.50. After seeing the day’s low at 9,850.80, the index built on its gains, as it touched an intraday high of 9,909.45. The index finally closed for the day at 9,884.40, up 0.90% from yesterday’s close. Similarly, the BSE Sensex opened higher at 31,534.57. After hitting an intraday low of 31,533.02, the index surged, reaching the highest point of the day at 31,727.98. The index finally ended the day at 31,646.46, up 0.82% from yesterday’s close.

The market breadth, indicating the overall health of the market, was tilted towards the gainers in today’s session. On the NSE, 1,129 stocks advanced, compared with 332 stocks declining, and 57 stocks remaining unchanged.

The broader markets outperformed the headline indices as the Nifty Midcap and Smallcap indices advanced 1.42% and 1.77%, respectively, in today’s session.

Today, the MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, gained 1.78%.

On the sectoral front, all the indices went home with gains, except the Nifty IT index which slipped 0.12%. The Nifty Metal, Energy, and Realty indices attracted investor interest the most, rallying 2.65%, 1.92%, and 1.69%, respectively.

The Union Cabinet today approved the promulgation of an ordinance that will allow hiking the cap on the cess levied on SUVs, large and luxury cars to 25% from 15%. The Finance ministry’s indirect tax policy-making body, Central Board of Excise and Customs (CBEC) has maintained that the change in cap was being made to keep the incidence of taxation similar to the pre-GST regime.

According to reports, the RBI has directed banks to refer at least 20 corporate defaulters to the bankruptcy court if their debt woes are not resolved by about mid-December. The RBI’s move has come after it, in June, had asked the banks to take 12 of India’s biggest defaulters to the bankruptcy court under the new powers given to it. The apex bank’s directions are coming at a time, when it is grappling to resolve more than USD 150 billion in stressed assets in Asia’s third-largest economy that is delaying the private investments required to boost the economic growth.

India’s largest car manufacturer, Maruti Suzuki India, announced the transformation of its retail network across the country. The Company has announced new showrooms, christened Maruti Suzuki ARENA, which will sport modern looks and offer a warm, friendly, and comfortable environment to the customers. With the latest addition, the Company will have four distinct retail channels: Maruti Suzuki ARENA, NEXA, Commercial, and True Value, catering to the needs of a large and diverse customer base.

Today, the trading volume on both the headline indices was lower compared to yesterday. The distribution day count for the Sensex and the Nifty stand at 7.0 and 6.0, respectively. The Indian market is currently in Uptrend Under Pressure.

Current Outlook:

– Be cautious with any new purchases.

– Make a defensive game plan for your portfolio.

– Stay disciplined and exercise sound sell rules.

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