Today’s Action
Benchmark indices ended on a positive note. Nifty, 0.4%, Sensex, 0.34%, Model Portfolio, +1.9%; MSI Ind 47, -0.7%.
Daily Market Review
Benchmark indices opened flat today but entered positive territory towards the second half and were able to sustain modest gains.
Nifty Bank was supported by both private and PSU banks. Nifty PSU once again delivered good gains but ended on a modest note. All sectoral indices ended in the green except Nifty FMCG, which closed marginally lower. Eicher Motors (+3%) and Apollo Tyres (+3%) led gains in Nifty Auto. Brent Crude and the Rupee retained yesterday’s comfortable level to offer continued relief to Indian markets.
The Nifty Midcap (+0.5%) showed stronger gains than the Nifty smallcap (+0.1%)
The market remains unchanged at a Confirmed uptrend. Although a Confirmed Uptrend is a green signal to enter the market, it is important that investors don’t play all their cards at once. We would suggest adopting an investment approach where you begin with a small allocation and increase it as and when we advance further with respect to market direction. Further follow-through days would give the necessary indication to increase your position in the market.
The advance-decline ratio was in favor of losers. Of the 2,059 stocks traded on the NSE, 743 gained, 980 declined, and 336 remained unchanged.
Stocks in News
Jet Airways (India) rallied 24.4% today after the news that TATA group was likely to acquire the carrier. The stock had one of its strongest traded volumes in its history today.
Yes Bank lost 7.4% today after non-executive chairman Mr. Ashok Chawla resigned saying the bank will need someone who can devote more time, especially since promoter and CEO Mr. Rana Kapoor’s term will end on January 31, 2019.
Apollo Hosps.Enterprise ended 8.1% up after the company reported its Q2 FY 2019 results with revenue and net profit growth of 15.3% and 11.4%, y/y, respectively. Revenue was a slight miss but EBITDA and net profit were above street estimates, aided by margin improvements in both hospital and pharmacy segments.
Action in Leading Stocks
Leaders Up on Volume: Vinati Organics (+3.7%), Havell’s India (+2.0%), and Tech Mahindra (+2.1%)
Leaders Down on Volume: Sandur Mang.& Iron Ores (-8.3%), Gujarat Ambuja Exports (-5.6%), and Gujarat Fluorochemicals (-3.0%)
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