Today’s Action
Benchmark indices ended in the green today. Nifty, +0.4%, Sensex, +0.4%, Model Portfolio, -0.7%; MSI Ind 47, +0.6%.
Daily Market Review
India’s benchmark indices got off to a gap-up opening buoyed by continued buying by domestic investors and positive cues from the global market. Indian rupee touched 69.3/dollar, strongest level in the last five months as investors appear optimistic of a pause in U.S. rate hike.
As a result of a strong rupee, Nifty IT (+1.1%) reported strong gains led by Infosys (+1.6%) and Tata Consultancy Svs. (+1.1%). Among others, Nifty Realty (+1.2%), Private Bank (+0.6%), and FMCG (+0.3%) ended on a positive note. While Pharma (-0.6%), PSU Bank (-0.4%) and Metal (-0.1%) weighed down the market.
The Nifty Midcap and Smallcap underperformed, both advanced 0.1%.
The advance-decline ratio was slightly in favor of advancers. Of the 2,085 stocks traded on the NSE, 876 advanced, 862 declined, and 347 remained unchanged.
The market remains in an Uptrend Under Pressure. Currently, the distribution count stands at four on the Nifty. We will change the status to a Downtrend, if 1-2 more distribution days are added. On the other hand, the market will be moved to a Confirmed Uptrend if the Nifty retakes the 10,985 level (its high during the recent rally).
As the market is in an Uptrend Under Pressure, investors should proceed ahead with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised.
Stocks in News
Tata Motors: Tata Motors-owned Jaguar-Land Rover (JLR) posted healthy sales numbers in the U.K. In December, sales grew 6.9% y/y. The stock was up 2.6% today. The stock showed a dismal performance in the year 2018.
Bandhan Bank: According to a media article, Bandhan Bank is in talks to acquire Gruh Finance in a share-swap deal. As per RBI guidelines, Bandhan bank has to reduce its promoter shareholding to 40% within three years since its inception. In September, the bank was stopped from branch expansion as it failed to reduce promoter holding. The stock was down 5.8% today.
Leaders Up on Volume: Aditya Fash.& Retail (+4.4%) and Merck (+4.0%)
Leaders Down on Volume: Glenmark Pharmaceuticals (-1.7%) and Nestle India (-0.6%)