Saturday, 16 June 2018

Hunting for multibaggers? Here are 10 mistakes which one should avoid


Focus on the growth rate of the industry including future growth potential is a must
The return-hungry investors who are always looking for stocks which could give multibagger returns normally end up picking up stocks which either don’t perform or even if they perform they would give returns less or equal to benchmark returns.
Being able to spot a potential multibagger stock early definitely requires some research, along with that, patience plays a key role. Such stocks do exist, and if you have already done your research then the ideal time to pick them is on every decline.
Here are a few parameters that can help you spot a potential multibagger stock early – focus on the growth rate of the industry including future growth potential, which would benefit the stock under consideration.
Apart from that if there are entry barrier that would prevent competition. High-quality management is an added advantage and is like a precondition for the creation of long-term wealth for investors, suggest experts.
The other measure to look at is financial ratios. “Although not strictly defined, but a consistent low debt-to-equity ratio, high returns ratio, and free cash flows are some of the key indicators we have seen in the multibaggers in the last decade,” Nidhi Agrawal, an analyst at Angel Broking told Moneycontrol.
Here are 10 mistakes as highlighted by different experts which one should avoid making when hunting for stocks which could potentially give multibagger returns: 
Analyst: Sunil Sharma, Chief Investment Officer, Sanctum Wealth 
Many investors fall victim to following stock tips by friends, neighbours and so-called experts. These picks rarely work out. In order to make money in equities, the conviction is necessary in an investment, which leads to the ability to hold on to a stock holding through volatile times and sell-offs.
If an investor does not understand a business, he should not invest in the company.  If an investor is unwilling to put in the time to research equities, then they are better off letting professionals manage their portfolios.
Investing in stocks based on low price: 
Just because a stock price is low does not mean that the stock is an attractive investment. I have surprisingly met clients that make the mistake of equating low price to cheap.
I once met a client that would only purchase stocks selling less than a certain price. However, even a stock selling at Rs 15 can be incredibly expensive while a stock selling at Rs 1,500 can often be cheap. Low price does not mean an attractive investment.
Holding on to losers: 
If a stock is down, there is a reason it is trading lower. It is best to regain losses by moving the money to an attractive investment.
Investors often make the mistake of being unwilling to take a loss on a position. However, if you think about investing logically, it is clear that if a stock has sold off, there is a reason it has done so, and it may never reach back the same levels or may take a long time to do so.
In many scenarios, the investor would be much better off putting money in an attractive alternative investment that would give them a better chance of recouping the loss.
Most importantly, avoiding and minimising crippling losses is a discipline many investors don’t follow.
Investing at high P/E multiples:
An investment return is often determined by the price paid. At 100 times P/E, for instance, an investor is paying 100 times the trailing earnings over the past 12 months of the company. That is an awfully expensive price.
It means it will take the investor 100 years to make back his investment.  Very few stocks are able to deliver the growth that justifies this sort of a premium. Therefore, the valuation paid is crucial in determining future returns.
Investing in risky bets: 
Investors want to make money quickly and take larger speculative bets.  These bets often lead to large losses. I have come across many investors that have bet on so-called sure shots, home runs, multibaggers.
In my experience, the vast majority of these investors end up taking losses.  These companies often have been hyped up by people on the street that are looking for suckers to pile in.
There are many ways that investors are taken advantage of, and it is up to the investor to recognize the dangers and work with an experienced advisor.
Analyst: Nidhi Agrawal- Sr. Equity Research Analyst at Angel Broking
Focusing more on macro data than on stock fundamentals: 
Blind investment in equity without looking much into the stock specific fundamentals should be avoided.
Just going with the hot picks or flavour of the season: 
They both need to be analysed before investing for the earning potential of the company/industry dynamics.
Overlooking corporate governance issues: 
With the number of scams and frauds coming up, one needs to do best possible due diligence for the corporate governance of the company.
Over-allocation/under allocation to particular stock: 
While asset allocation is highly subjective and varies from person to person, a prudent investment strategy says that the allocation should be in line with the conviction and risk appetite of the investor.
Discontinuing monitoring of stock/key variables: 
Once an investor has taken a position in the stock, he/ she needs to regularly monitor the investment thesis, changing variables etc. to understand whether it is on the right track.

Friday, 15 June 2018

Nifty hovers around 10,800 amid trade war woes; DRL top gainer

Asian markets are cautiously mixed ahead of expected US tariffs.

Rupee Update: The rupee plunged by 32 paise to hit a three-week low of 67.95 against the US dollar following strong demand for the greenback amid sustained foreign capital outflows.
Besides, the dollar strengthening against other currencies overseas as the European Central Bank (ECB) pledged to leave interest rates unchanged until mid-2019, weighed on the rupee, traders said.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,372.84 crore yesterday, as per provisional data issued by the stock exchanges.
Yesterday, the rupee had gained 3 paise to end at 67.62 against the US currency, cutting short its two-day decline.
Market Update: The market is rangebound. Investors monitor the trade developments ahead of likely announcement of US tariffs on some Chinese goods.
The 30-share BSE Sensex fell 15.47 points to 35,584.35 and the 50-share NSE Nifty declined 1.70 points to 10,806.30. About 954 shares advanced against 687 declining shares on the BSE.
Buzzing: Prestige Estates share price gained as much as 5 percent in morning after global investment firm CLSA maintained Buy call to the stock, with a target price of Rs 395 per share.
The research house sees large scale-up potential in residential & office business and likes company's platform-led strategy to growth.
The company raised its risk appetite & investment capability at the right time, CLSA said, adding the stock is a preferred value pick in the property sector.
ICICI Bank clarifies on NCLT case against Punj Lloyd: ICICI Bank has filed an insolvency petition under the Insolvency and Bankruptcy Code, 2016 against Punj Lloyd before the NCLT Principal Bench, New Delhi on May 28.
On June 14, 2018, the NCLT issued notice to Punj Lloyd to file their reply within 2 weeks. The petition has been filed in the ordinary course of business against a defaulting borrower and has been determined to not be material to ICICI Bank and does not warrant disclosure to the stock exchanges.
USFDA Approval: Dr Reddy's Laboratories has received final approval from the US Food and Drug Administration (USFDA) and is launching Buprenorphine and Naloxone Sublingual Film, 2 mg/0.5 mg, 4 mg/1 mg, 8 mg/2 mg, and 12 mg/3 mg in the United States market.
It is a therapeutic equivalent generic version of Suboxone (buprenorphine and naloxone) sublingual film.
The product is being launched with an approved Risk Evaluation and Mitigation Strategy (REMS) Program.
Buprenorphine and naloxone are used to treat adults with opioid dependence/addiction. Buprenorphine helps suppress withdrawal symptoms caused by discontinuation of opioid drugs, and naloxone reverses and blocks the effect of opioids.
This combination of medications is used as part of a complete treatment program including prescription monitoring, counseling, and psychosocial support.
Market Opening: Benchmark indices opened on a flat note amid mixed trade in Asia ahead of likely US tariffs on select Chinese goods.
The Sensex fell 12.28 points to 35,587.54 and the Nifty slipped 1.80 points to 10,806.20.
L&T, Reliance Industries, HDFC Bank, BPCL and IOC are under pressure.
Dr Reddy's Labs, TCS, Lupin, ICICI Bank, Titan Company and Maruti Suzuki gained up to 2 percent.
Nifty Midcap index is flat.
Tata Global, HDFC Standard Life, Venkys, Kesoram Industries, PVR, HOEC, Prestige Estates and LG Balakrishna gained up to 5 percent.
SBI Life, Vakrangee, Gitanjali Gems, Avenue Supermarts and Gati fell up to 5 percent.
Market Pre-Opening: The Sensex gained 56.44 points at 35,656.26 and the Nifty rose 0.70 points to 10,808.70.
Pre-Market: The Nifty50 is likely to open lower on Friday following muted trend seen in other Asian markets. The Nifty closed 48 points lower at 10,808.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 19.5 points or 0.18 percent. Nifty futures were trading around 10,795-level on the Singaporean Exchange.
US stocks ended a choppy session lower on Wednesday after the US Federal Reserve raised interest rates as expected and projected a slightly faster pace of rate hikes this year, said a Reuters report.
The European Central Bank said on Thursday it will end its unprecedented bond purchase scheme by the close of the year, taking its biggest step in dismantling crisis-era stimulus a decade after the start of the euro zone's economic downturn, it said.
Asian shares wobbled on Friday as investors braced for US tariffs against China, while the euro flirted with two-week lows after a cautious European Central Bank indicated it would not raise interest rates for some time.
Market Pre-Opening: Benchmark indices are higher in pre-opening trade. Asian markets are mixed ahead of likely US tariffs on some Chinese goods.
The Sensex Sensex rose 122.33 points to 35,722.15 and the Nifty gained 15.40 points at 10,823.40.



Thursday, 14 June 2018

Nifty below 10,800, Sensex falls 200 pts; Infosys trades ex-dividend

Asian shares traded lower after Fed raises rates and signals more hikes ahead.

Alembic Pharmaceuticals gets USFDA approval: The company has received approval from the USFDA for its abbreviated new drug application (ANDA) for Doxycycline Hyclate capsules USP, 50 mg and 100 mg.
The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD), Vibramycin Capsules, 50 mg and 100 mg, of Pfizer Inc.
At 11:03 hrs Alembic Pharmaceuticals was quoting at Rs 526.25, up Rs 36.00, or 7.34 percent. 
Buzzing: Shares of Cipla gained 2 percent as the company received final USFDA approval for Isoproterenol hydrochloride injection.
The company has received final approval for its abbreviated new drug application (ANDA) for Isoproterenol hydrochloride injection USP, 0.2mg/mL, single-use sterile Ampoule from the United States Food and Drug Administration (USFDA).
Cipla’s Isoproterenol hydrochloride injection is AP - rated generic therapeutic equivalent version of Hospira Inc’s Isuprel injection and is indicated for the treatment of cardiac problems and heart block.
Rupee Update: The rupee appreciated by 5 paise to 67.60 against the US dollar after the American currency weakened overseas.
Dealers said fresh selling of the greenback by banks and exporters backed up the rupee. 
The dollar turned weak against other currencies overseas even after the US Federal Reserve lifted interest rates and signalled two more hikes this year and four in 2019.
Yesterday, the domestic unit ended 16 paise down to close at a near one-week low of 67.65 against the US currency on sustained dollar demand.

Market Update: Benchmark indices extended losses in morning as the Sensex shed 192.61 points to 35,546.55, dragged by Infosys, Reliance Industries, ICICI Bank and TCS.
The Nifty slipped below 10,800 levels, falling 63.20 points to 10,793.50.
Aditya Birla Capital gains a percent: Edelweiss Securities has initiated coverage with Buy rating on the stock and set a target price at Rs 199, implying potential upside of 42.5 percent.
The company is in a sweet spot to capture the financialisation story, it believes.
The research house expects multiple levers to sustain best-in-class growth & improved return ratios.
It has promising blend of businesses; and scalable and sustainable model while its business model shares similarities with successful financial entities like Bajaj and HDFC, Edelweiss said.
Execution of business strategy is key risk to potential valuation re-rating, it said.
Order Win: Larsen & Toubro has won orders worth Rs 1,391 crore across various business segments.
L&T Hydrocarbon Engineering (LTHE), a wholly owned subsidiary of engineering and construction major L&T, has secured new orders in excess of Rs 750 crore in its construction services business vertical.
Water and effluent treatment business has bagged orders worth Rs 432 crore while smart world ex-communication segment has secured an order worth Rs 209 crore.
Buzzing: Shares of Adani Transmission rose more than 3 percent as company received LoI intra state transmission project in Uttar Pradesh.
The company has received the LoI from REC Transmission Projects Company, a wholly owned subsidiary of Rural Electrification Corporation, to build, own, operate and maintain the transmission project in the state of Uttar Pradesh.
The project Ghatampur Transmission has approximately 900 ckt kms of line at voltage levels of 765 KV and 400 KV.
This project is primarily being constructed to establish transmission system for evacuation of power from 3X660MW Ghatampur thermal power project.
Market Update: The market remained under pressure as investors digested interest rate hike by the US Federal Reserve that also signalled more hikes ahead.
The 30-share BSE Sensex fell 127.03 points to 35,612.13 and the 50-share NSE Nifty slipped 41.70 points to 10,815.
Buzzing: Shares of HDFC Bank were up around a quarter of a percent after the lender recived a Cabinet nod to its fundraising amount.
The stock on Thursday touched an intraday high of Rs 2,041.4, while it touched an intraday low of Rs 2,035.25.
The Union Cabinet on Wednesday approved foreign direct investment (FDI) worth Rs 24,000 crore for HDFC Bank.
This is including the premium, over and above the previous approved limit of Rs 10,000 crore, such that the composite foreign shareholding in the bank shall not exceed 74 percent of the enhanced paid-up equity share capital of the bank, said Finance Minister Piyush Goyal after the Cabinet meeting, which was chaired by Prime Minister Narendra Modi.
With the raising of this capital, FDI in the bank would hit the regulatory ceiling of 74 percent.
Dish TV in Action: Direct-to-home services provider Dish TV India share price rallied as much as 3.5 percent in morning on Thursday after ace investor Rakesh Jhunjhunwala bought shareholding worth Rs 93 crore.
He picked up a 0.7 percent stake, or 1.3 crore shares, in the digital-to-home provider.
The purchase was done through Jhunjhunwala's firm Rare Enterprises at Rs 71.30 per share, according to bulk deals data on the National Stock Exchange (NSE) website.
The total value of the block deal stands at Rs 92.69 crore.
Buzzing: Shares of ICICI Bank fell 1 percent in the early trade as company to offload 2 percent stake in its insurance arm.
"The board of directors of the bank approved the sale of up to 2,87,11,100 shares, representing up to 2% of the issued and the paid-up equity share
capital of ICICI Prudential Life Insurance Company in one or more tranches," as per company release.
The stake sale can be done in any manner permissible under applicable law, including through an offer for sale by promoters through stock exchange mechanism, as may be permitted and in the manner specified by the Indian regulatory authorities, it added.
Market Opening: Benchmark indices started off trade on a weak note after investors digested US Federal Reserve's rate hike.
The 30-share BSE Sensex fell 93.70 points to 35,645.46 and the 50-share NSE Nifty declined 35.30 points to 10,821.40.
Infosys lost 2 percent.
Vedanta, BPCL, HPCL, IOC, SBI, Axis Bank, ICICI Bank and Tata Steel are under pressure.
Lupin, Cipla, Aurobindo, Bharti Airtel and HDFC Bank are early gainers.
Nifty Midcap index dropped 36 points and Nifty Bank slipped 70 points.
Dish TV, Vakrangee, Granules India, gained up to 5 percent.
NBCC, Shree Renuka, Bhansali Engineering, Oberoi Realty, Mindtree, Future Consumer, SBI Life, Adani Power, Suzlon, Reliance Power, Canara Bank, PNB, Gammon Infra, Videocon and GMR Infrastructure declined up to 5 percent.
Market in Pre-opening: Benchmark indices settled pre-opening trade on a mixed note as the Sensex gained 3.94 points at 35,743.10 while the Nifty fell 23.80 points to 10,832.90.
Market Pre-Opening: The Nifty50 is likely to open lower on Thursday following muted trend seen in other Asian markets. The Nifty closed 13 points higher at 10,856.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 34.5 points or 0.32 percent. Nifty futures were trading around 10,810-level on the Singaporean Exchange.
US stocks ended a choppy session lower on Wednesday after the US Federal Reserve raised interest rates as expected and projected a slightly faster pace of rate hikes this year, said a Reuters report.
The Federal Reserve raised interest rates on Wednesday, a move that was widely expected but still marked a milestone in the US central bank’s shift from policies used to battle the 2007-2009 financial crisis and recession.
Asian shares edged down after the Federal Reserve rate hike while concerns about US-China trade frictions kept investors on edge. MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.25 percent in early trade.
South Korea's KOSPI was off 0.9 percent, while Australia's market slipped 0.2 percent. Japan's Nikkei shed 0.7 percent.


Wednesday, 13 June 2018

2017 multibaggers losing sheen! 20 stocks that might be bleeding your portfolio

Small and midcaps stocks have been the biggest casualty in 2018 even though benchmark indices are still trading in the green. The BSE Midcap and Smallcap indices have slipped 10 percent and over 11 percent till date.

Stocks that more than doubled investor wealth in 2017 have become a source of pain for investors holding them in their portfolio in 2018. Some of these stocks that had risen 100-500 percent in 2017 have now fallen up to 90 percent. These include: Vakrangee (down 91 percent), PC Jeweller (down 70 percent), DCM Shriram (down 52 percent), Jet Airways (down 51 percent) and Unitech (down 46 percent).
Small and midcaps stocks have been the biggest casualty in 2018 even though benchmark indices are still trading in the green. The BSE Midcap and Smallcap indices have slipped 10 percent and over 11 percent till date.
Many reasons can be attributed to the fall in midcap stocks. In some instances like Vakrangee, it was driven by fundamental factors such as resignation of Price Waterhouse & Co as auditor in April.
BSE 500 stocks that have suffered the most include: Vakrangee, PC Jeweller, DCM Shriram, Jet Airways, Adani Transmission, Unitech, Jaiprakash Associates, Rain Industries, Jindal Saw, Jai Corp and Future Consumer.
“The bull phase of CY17 provided an impetus to the small and midcap segment to generate staggering returns. Riding on this uptrend trajectory, stocks like Vakrangee which rose around 174 percent have recently sold off,” Dinesh Rohira, Founder & CEO, 5nance.com, said.
He cites valuations way ahead of fundamentals and earnings in a difficult macro regime. “It was partially aided by SEBI’s reclassification of mutual fund which played a role in the price correction through churning of schemes.”
Correction in the broader market led to a margin call on scrips, denting overall sentiment in the market, and translated into further selling.
Among smallcaps stocks like Orient Paper & Industries (down 80 percent), Jaypee Infratech (down 77 percent), Mohota Industries (down 63 percent), Parsvnath Developers (down 60 percent) and DCM Shriram (down 52 percent) corrected the most.
The overhang on the small and midcap space doesn’t seem to end. The recent exit by auditors in the last two months also weighed on market sentiment. Experts feel the correction is not over yet and the pain could continue. “Auditors resigning from a few midcap companies are creating panic among investors. Companies with questionable management integrity have seen a major sell-off as investors run for cover,” Atish Matlawala, Senior Analyst, SSJ Finance & Securities, said.
The BSE Midcap index corrected from 21,000 in January to 18,100, correcting 17 percent. “Now midcaps have come near their strong support zones of 18,000/17,000 which could cushion the fall and we may see a recovery towards 20,000/20,500,” Matlawala stated.
The BSE Smallcap index corrected from 9,650 to 7,250, a fall of 24 percent. “The next big support lies around 6,900/6,200 levels. We may see a further correction in smallcap before bouncing towards 8,300/9,000 level,” he added.
What should investors do now?
After a strong correction, prices in the small & midcap space have become attractive and valuations have reduced marginally. Though valuation are lower they are not cheap enough, experts said. On a one-year forward basis, (Bloomberg) midcap valuations reduced by only 10 percent. The same for smallcaps corrected almost 20 percent.
Experts feel that not all stocks that provided multibagger returns can be considered a value buys after the correction. “The idea is to look at companies that have quality management, reasonable valuations and robust growth prospects. If investors are holding quality stocks backed by strong fundamentals then they need not worry about selling,” Bonanza Portfolio said in a recent report.
“In transitory multi-baggers or temporary situational growth stocks, investors should focus on capital protection and loss minimization strategies and sell on pullbacks,” the brokerage added.
Rohira advises investors to rejig their portfolio to stem the bleeding in the portfolio. “The sell-off in the market in the backdrop of uncertain global and domestic events can’t be ruled out,” he explained.



Tuesday, 12 June 2018

Sensex up over 150 points on buying among banks, pharma names; Nifty above 10,800


Sectors such as banks, IT and energy names have picked up pace, while midcaps too have extended their gains. Among the index gainers are Dr Reddy’s Labs, Sun Pharma, and Lupin, while Tata Steel, Power Grid, and Grasim were the top losers.
Buying counters are buzzing on D-Street as the Sensex and Nifty have extended their gains. The 30-share index is trading up over 150 points, while the Nifty is up almost half a percent. It is continuing to hold 10,800-mark. Sectors such as banks, IT and energy names have picked up pace, while midcaps too have extended their gains. Among the index gainers are Dr Reddy’s Labs, Sun Pharma, and Lupin, while Tata Steel, Power Grid, and Grasim were the top losers. 
Market Check: Indices have extended their gains from the opening minutes, with the Sensex rising over 100 points, while the Nifty is trading well above 10,800-mark.  
The Sensex is up 99.83 points or 0.28% at 35583.30, and the Nifty up 26.20 points or 0.24% at 10813.20. The market breadth is positive as 1109 shares advanced against a decline of 779 shares, while 104 shares were unchanged.
Dr Reddy’s, TCS and Lupin were the top gainers, while Tata Steel, Maruti Suzuki, and Hindalco lost the most. 
Shares of Manappuram Finance gained over a percent in the morning trade as investors bet on the stock ahead of its Board Meeting.
The company’s Board will be meeting on June 14 in a bid to consider issuance of non-convertible debentures (NCDs) on a private placement basis.
It was in the news recently after it declared its financial results. The company reported a fall of 9.2 percent in its net profit at Rs 182.17 crore in the last quarter ended March 2018. The company had registered a net profit of Rs 200.58 crore in the same quarter of the preceding fiscal.
The dollar jumped to a 3-week top on Tuesday while Asian shares started cautiously as investors were hopeful of a positive outcome from a highly anticipated US-Korea summit, which could set the stage for ending a nuclear stand-off on the Korean peninsula.
Japan's Nikkei climbed 0.8 percent to the highest in three weeks and South Korean shares added 0.1 percent. Australia's benchmark index was a tad firmer while New Zealand eased 0.3 percent .
That left MSCI's broadest index of Asia-Pacific shares outside Japan a touch softer at 573.31.
Market Opens: Benchmark indices began trading on a mildly higher note, with the Nifty holding 10,800-mark in the opening tick 
The Sensex is up 43.18 points or 0.12% at 35526.65, while the Nifty is up 14.50 points or 0.13% at 10801.50. The market breadth is positive as 481 shares advanced, against a decline of 334 shares, while 68 shares were unchanged.
All sectoral indices are trading flat, with maximum gains visible in pharmaceutical names. Midcaps, too, are trading flat; Nifty Midcap index is up over one-tenth of a percent. 
Dr Reddy’s Labs, Wipro, and IOC were the top gainers, while Tata Steel, Infosys and UPL have lost the most. 
Pre-opening: The benchmark indices are marginally higher in the pre-opening. The Sensex up 41.20 points at 35524.67, and the Nifty up 29.80 points at 10816.80.

Rupee Update: The Indian rupee opened marginally lower at 67.45 per dollar on Tuesday versus previous close 67.42.
In the last couple of session rupee has been consolidating in a narrow range of 64.40 and 64.75 ahead of important inflation and industrial production number. Market participants are cautious ahead of today’s inflation and IIP number; expectation is that inflation for May could rise to 4.8% compared to rise of 4.5% in the previous month, said Motilal Oswal.
On the other hand, industrial production could rise 5.2% in April compared to growth of 4.4% in the previous month. Today, USD-INR pair is expected to quote in the range of 67.45 and 67.85, it added.
Here are stocks that are in news today:
IFCI revised its benchmark rate to 10.4 percent from 10.2 percent.
Infosys has announced voluntary delisting of its American depositary shares from Euronext Paris & Euronext London
Manappuram Finance board meeting on June 14 to consider issuance of NCD on private placement basis
Orchid Pharma has received EU GMP certification for its Alathur facility
DCM Shriram board meeting on June 18 to consider the proposal to Buy-Back the fully paid up equity shares
Borosil Glass Works' board meeting on June 18, 2018
Shoppers Stop closes its Shoppers Stop store at Swami Vivekananda Airport, Raipur, due to non-renewal of airport store premises agreement
Strides Shasun receives USFDA approval for Oseltamivir Phosphate Capsules
Inox Wind appoints Dewan P. N. Chopra & Co as Independent auditor for next 5 years
Kridhan Infra's associate company won a new order worth Rs 180 crore
The Nifty50 is likely to open flat on Tuesday following muted trend seen in other Asian markets. The Nifty50 closed 19 points higher at 10,786 on Monday. 
Trends on SGX Nifty indicate a flat opening for the broader index in India, a fall of 2.5 points or 0.02 percent. Nifty futures were trading around 10,789-level on the Singaporean Exchange.
All three major US stock indexes closed slightly higher on Monday as investors eyed the looming United States-North Korea summit on Tuesday in Singapore while shrugging off the weekend’s factious meeting of the Group of Seven nations, said a Reuters report. 
Asian markets were mixed in early Tuesday trade as investors shrugged off trade-related jitters and ahead of several key events this week, including a highly anticipated meeting between US President Donald Trump and North Korean leader Kim Jong Un in Singapore, it said. 
Japan's Nikkei 225 rose 0.43 percent in early morning trade amid broad-based gains. Other markets in the region were little changed. South Korea's Kospi slipped 0.12 percent and Australia's S&P/ASX 200 tacked on 0.03 percent.

Monday, 11 June 2018

Sensex up over 150 pts, Nifty above 10,820; banks see big gains


Among sectoral indices, pharma, metals and IT stocks are trading higher, while midcaps, too, are seeing good gains.
Order Win: Shares of Welspun Corp added 3.6 percent as company bagged an order for supply of API pipes.
The company has been awarded contracts for the supply of 72 KMT of API pipes into America's market.
With these additions, the company's current order book stands at 1,610 KMTs valued at Rs 110 billion.
The market is witnessing good gains post its opening, with the Nifty trading well above 10,800-mark, while the Sensex is up over 150 points. The market breadth currently favors the advances. Midcap index is seeing a strong surge, gaining almost a percent on the Nifty, while sectoral indices such as PSU banks, pharma, infra, and energy are the biggest gainers. 
Bharti Airtel, Dr. Reddy’s Labs, and Sun Pharma are the top gainers, while Power Grid and Tata Motors have lost the most. Avenue Supermarts, the operator of DMart chain of outlets, touched a market capitalization of Rs 1 lakh crore on Monday morning. The stock managed to gain 2 percent.
Avenue Supermarts, an operator of DMart chain of outlets, surpassed a market capitalization of Rs 1 lakh crore on Monday morning. The stock managed to gain 2 percent intraday.
The stock touched a 52-week high of Rs 1,619.95, while it had an intraday low of Rs 1,591.00.
The company’s current market capitalization stands at Rs 100,440.16 crore.
Market Check: After seeing a mildly higher opening, equity benchmarks gained strength in the first hour of trade, with the Sensex gaining over 100 points, while the Nifty managed to clock 10,800. Buying was visible among PSU banks; the Nifty PSU bank index was up over 1.5 percent, while gains were seen pharmaceuticals, infra, and FMCG names. The midcap index is up around half a percent.
Among stocks, Inox Wind fell 8 percent after its auditors decided to quit the firm. Sun Pharma has extended gains from Friday, while Sagar Cements is up over 6 percent on the back of good sales figures for May.
Shares of Sun Pharma continued its gains from Friday, rising over a percent on Monday morning after its Halol plant received a VAI status from US drug regulator. The status implies that the plant may not go a re-inspection by the regulator ahead. 
The stock has touched an intraday high of Rs 536.00 and an intraday low of Rs 527.70. 
The company has received a voluntary action initiated (VAI) status for its Halol plant from US FDA.
For the uninitiated, VAI status would imply that there would be no re-inspection required at its Halol unit.
Market Opens: Shares have begun the week on a positive note, with the Nifty trading eyeing 10,800-mark. 
The Sensex is up 46.03 points or 0.13% at 35489.70, and the Nifty up 15.50 points or 0.14% at 10783.20. The market breadth is positive as 393 shares advanced, against a decline of 151 shares, while 60 shares are unchanged.
Among sectoral indices, pharma, metals and IT stocks are trading higher, while midcaps, too, are seeing good gains. 
Dr. Reddy’s Labs, Adani Ports, Bajaj Finance and HCL Tech are the top gainers, while ICICI Bank, HUL, and Axis Bank have lost the most. 
Asian stocks moved gingerly as a weekend G7 summit fanned trade conflict fears after US President Donald Trump backed out of a joint communique in a blow to the group’s efforts to show a united front.
Trump’s reversal, announced while he was en route to Singapore for a meeting with North Korean leader Kim Jong Un, sent his Group of Seven partners scrambling.
“The G7 meeting in Canada reiterated the growing rift between Washington and its allies over free trade,” wrote Tai Hui, chief market strategist for the Asia Pacific at J.P. Morgan Asset Management.
“Business confidence, and subsequently capital spending, is at risk if this tension continues through the summer,” he said, adding that central bank meetings will be critical events this week.
Rupee Update: The Indian rupee opened with a marginal gain of 4 paise at 67.46 per dollar on Monday versus previous close 67.50.
Rupee, on Friday, came under pressure against the US dollar after global crude oil prices continued its uptrend. But in the late half of the session crude prices came under pressure as US oil drilling activity rose to its highest level since March 2015, while increasing output in Russia also weighed on the market, said Motilal Oswal.
On the domestic front, market participants will be keeping an eye on inflation and industrial production number. The expectation is that inflation for May could rise to 4.8% compared to rising of 4.5% in the previous month.
Today, USD-INR pair is expected to quote in the range of 67.45 and 67.85. Volatility for the pair could be confined to a narrow range ahead of the important global economic events scheduled for this week, it added.
Here are stocks that are in news today:
Sagar Cements May standalone production up 15% at 1.84 lakh tonne
Indian Overseas Bank raises the lending rate by 5-10 bps effective June 10
Syndicate Bank raises one-year MCLR to 8.55% from 8.50%
Shoppers Stop's chief financial officer Vijay Jain resigned w.e.f. June 08, 2018
Natco Pharma launches generic Posaconazole injection
SBI to auction 12 bad accounts this month to recover over Rs 1325 crore
PNB board approved to initiate the process to disinvest stake in PNB Housing Finance
The Nifty50 is likely to open higher on Monday tracking positive trend seen in other Asian markets. The Nifty50 close 0.7 points lower at 10,767 on Friday.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 21.5 points or 0.2 percent. Nifty futures were trading around 10,769-level on the Singaporean Exchange.
US stock indexes closed higher on Friday as investors shrugged off concerns about global trade tensions but trading volume was relatively light ahead of a busy week of central bank meetings, said a Reuters report.
Asian stocks moved gingerly on Monday as a weekend G7 summit fanned trade conflict fears after US President Donald Trump backed out of a joint communique in a blow to the group’s efforts to show a united front, it said.
Japan's Nikkei dipped 0.1 percent while South Korea's KOSPI.KS11 added 0.2 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.05 percent.

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