Weekly Big Picture : GST Collections Rise Sequentially; Maruti Sales Improve

Market Pulse Confirmed Uptrend

Weekly Action

Nifty, +2.7%; Sensex, +2.8%; Nifty Midcap, +4.3%; Nifty Smallcap, +3.4%; and Model Portfolio, +1.3%.

Weekly Market Review

It was a good week for the investors, as benchmark indices inched higher over 2.7%. Nifty was up on all the trading sessions of the week. Banking shares were up after Yes Bank (+20%) receiving a binding offer from a global investor for an investment of $1.2B in the bank through fresh issuance of equity shares. Zee Entertainment Ents. (+28%) helped Nifty Media to surge 11% during the week.

GST collections for October improved 3.7% sequentially to Rs 95,380 crore, however, it declined 5.3% y/y.

Broader markets outperformed the market, as Nifty Midcap and Smallcap advanced 4.3% and 3.4%, respectively.

On the sectoral front, all the sectors ended in the green. Following Nifty Media, Nifty PSU Bank (+10.4%) and Metal (+6.1%) were the top gainers.

Looking ahead, we would like Nifty to hold its key moving averages with good participation from Midcap and Smallcap stocks. With Nifty in a Confirmed Uptrend, we recommend focusing on non-extended ideas trading above their respective moving averages with RS lines at or near new highs. On the flip side, if Nifty registers additional distribution days, it will be a subtle sign of weakness in the market.

Key News

Mahindra & Mahindra (-2.8%) Auto sales for October declined 11% y/y to 51,896 units. While, tractor sales declined 4% to 45,433 units.

Maruti Suzuki India (+0.8%) October sales improved 4.5% y/y and 25.4% m/m to 1.53 lakh units.

Ashok Leyland (-1.0%) The company reported 37% y/y decline in its total sales for October to 9,074 units.

Bank Of India (-0.4%) The bank reported Rs 266 crore profit for the quarter ending September. It reported a net loss of Rs 1,156 crore in the quarter, a year ago. GNPA improved 5bps y/y to 16.31%. NNPA improved 193bps y/y to 5.77%.

What do you think? Please email us any questions or comments.

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