Indian Market Outlook:

Key benchmark indices touched their respective record highs in the past week supported by rally seen in the global markets.US markets touched new highs after US Treasury Secretary Steven Mnuchin said the United States and China would sign their Phase 1 trade pact in early January.In the week ended on Friday, the Sensex rose 671.83 points or 1.64 % to settle at 41,681.54. The Nifty 50 index rose 185.10 points or 1.53% to settle at 12271.80foreign portfolio investors (FPIs) bought equities worth Rs.4891.7crore over the past five trading sessions while domestic institutional investors sells equity worth Rs.-3751.47crore.This divergent behaviour between FIIs and DIIs showed that Market is now climbing a wall of worry. Currently, very few stocks have made 52-week highs, when indices sit at new highslevels.Yearend sessions are likely to witness extremely stock-specific movement with only a few pockets showing strength. A lot of rotation is also expected from high priced stocks/sectors for value buying in cyclical and commodities. Investors having a one-year horizon can allocate capital to metals, cement, sugar and ceramic sectors. One can also look at FMCG, as there are opportunities to accumulate these sticks at current levels. But invest only in quality companies from the above sectors to secure your portfolio from any micro risks.

Latest Spot Price (in US $)

Precious Metal Current Price Change (%) 3 Month 6 Month 1 Year
Gold 1,482.05 0.06 -3.23 5.02 15.01
Silver 17.26 1.53 -4.38 12.30 15.37
Platinum 912.15 -1.98 -4.08 12.69 15.60
USD/INR 71.06 0.37 0.37 1.64 1.31
Crude 60.37 1.00 2.95 5.12 32.42

Global Weekly Events

Date Region Event Description Forecast Previous
Dec 23,2019 USD New Home Sales (Nov) 735K 733K
Dec 24,2019 USD Core Durable Goods Orders (MoM) (Nov) 0.1% 0.6%
Dec 26,2019 USD Initial Jobless Claims 220K 234K
Dec 27,2019 INR FX Reserves, USD
Dec 27,2019 USD Crude Oil Inventories          – -1.085M

Domestic Economy Indicators

Heading Indicators Current Previous
 RBI Policy Rate Policy Repo Rate 5.15% 5.15%
Reserve Policy Rate 4.90% 4.90%
Bank Rate 5.40% 5.40%
 Reserve Ratio CRR 4% 4%
SLR 18.50% 18.50%
 Inflation Rate Wholesale Price Index 0.58% 0.16%
Consumer Price Index 5.54% 4.62%
 Trade Data Export ($ Million) 25980 26380
Import($ Million) 38110 37390
 Industry IIP -3.8% -4.3%

 

Domestic Indices Closing(20th Dec) Change %Change
BSE Sensex 41,681.54 671.83 1.64
Nifty 12,271.80 185.10 1.53
Mid Cap 14,835.97 5.57 0.04
Small Cap 13,391.03 58.37 0.44
Bank Nifty 32,384.95 370.70 1.16

 

Global Indices Closing(20thDec) Change %Change
Dow Jones 28,455.09 319.71 1.14
Nasdaq 8,924.96 190.08 2.18
FTSE 7,582.48 229.04 3.11
Nikkei 23,816.63 -206.47 -0.86
Hang Seng 27,871.35 183.59 0.66
Shanghai Com 3,004.94 37.26 1.26

 

Net Inflow (Cr) FII DII
16-Dec-2019    728.13 -796.38
17-Dec-2019  1,248.47 -908.16
18-Dec-2019      1,836.81 -1,267.57
19-Dec-2019         739.43 -493.95
20-Dec-2019          338.86 -285.41
Total 4891.7 -3751.47

 

Top Gainers Closing Price Prev Close Chg (%)
Yes Bank 51.40 46.65 10.18
Tata Steel 461.00 428.40 7.61
TCS 2222.90 2071.45 7.32
BhartiAirtel 453.80 427.80 6.08
HCL Tech. 569.90 543.15 4.92

 

Top Losers Closing Price Prev Close Chg (%)
Grasim Industries 745.60 782.30 -4.69
Vedanta 144.25 149.40 -3.45
Hindustan Unilever 1943.50 2006.20 -3.15
Indiabulls Housing 299.35 309.05 -3.14
Sun Pharma 430.30 439.25 -2.04

 

Economic News:

  • Indian will emerge stronger from an economic slowdown, Prime Minister NarendraModi said in a speech on Friday, reassuring investors about their long-term bets on Asia’s third-biggest economy. “India has witnessed such ups and downs previously as well,” Modi said in a Hindi speech to businesses leaders in capital New Delhi. “And each time, we have emerged even stronger. That’s why even now India will forge its path ahead with firmer determination and confidence.” The federal government will spend 100 trillion rupees ($1.4 trillion) in the coming years to develop the country’s infrastructure further, Modi said.

 

  • GST compensation payment of nine large states, including Gujarat, Maharashtra and West Bengal, is expected to double to Rs 60,000-70,000 crore in 2019-20, according to a report. The states are Gujarat, Maharashtra, Karnataka, Kerala, Tamil Nadu, Haryana, Punjab, Rajasthan, and West Bengal. ICRA, in a report, said the compensation for the shortfall in goods and services tax (GST) collection may rise due to fall in growth of state GST (SGST) revenues amid the economic slowdown.

 Industry News:

  • The Digital Communications Commission, the apex decision-making body at the telecom department, on Friday approved aRs 5.22 trillion spectrum auction plan entailing 8300 MHz of airwaves across 22 circles and the sale is likely to take place in March-April. Successful bidders will have to pay 25 per cent of the amount upfront for sub 1 GHz, and 50 per cent upfront for higher frequency bands.

 

  • Auto stocks surged up to 4 per cent on Thursday on hopes of revival in demand for personal vehicles and value buying. TVS Motor was the biggest gainer from the pack, up 4.04 per cent to Rs 463.45. Eicher Motors added 2.91 per cent to Rs 22,384 and Mahindra & Mahindra was up 2.7 per cent to Rs 537. Nifty Auto was the biggest sectoral gainer on NSE, advancing 1.23 per cent to 8181.40. Auto is one sector that has seen growing interest from traders as there is hope that if there is a revival in economic growth then the demand will pick up quickly.

Company News:

  • The Delhi high court on Friday asked Reliance Industries Ltd and British Gas to disclose their assets after the Centre sought to restrain them from disposing assets including RIL’s plan to sell a 20% stake to oil giant Saudi Aramco.In an application filed in September, the government had sought curbs citing the failure of the two companies to honour their payment under a $4.5-billion international arbitral award in the Panna-Mukta and Tapti (PMT) production-sharing contracts.

 

  • Tata Chemicals, the third largest producer of soda ash in the world, acquired the 25 per cent remaining stake in its US subsidiary, Tata Chemicals North America (TCNA). The company said its wholly-owned subsidiary Valley Holdings has acquired the remaining 25 per cent partnership interest in Tata Chemicals (Soda Ash) Partners Holdings (which owns TCNA) from the Andover Group, a subsidiary of Owens-Illinois, for $195 million (nearly Rs 1,386.7 crore).

 

  • Mahindra & Mahindra Ltd. (M&M) has announced major changes in key leadership roles effective April 1, 2020, as a number of its top executives are retiring over the next fifteen months. Mahindra Group president (Strategy) Anish Shah, who joined the group nearly five years ago from GE Capital, gets the pivotal role to pilot the auto major in future. Chairman Anand Mahindra will transition to the role of non-executive chairman of the board of M&M with effect from April 1, 2020. Dr. PawanGoenka, the current MD, will be re-designated as MD and CEO effective April 1, 2020.

Global News:

  • Britain’s freshly-elected parliament prepared on Friday to move past years of partisan wrangling and initially approve Prime Minister Boris Johnson’s divorce deal with the EU. The all-but-certain outcome in the lower House of Commons will help Johnson on his way towards meeting his winning campaign promise to “get Brexit done” on January 31. But it will also push London and Brussels closer to another cliff edge at the end of 2020 that might disrupt decades of unfettered trade.

 

  • S. stocks were set to open nearly unchanged from record highs on Friday as investors stayed optimistic that Washington and Beijing would sign a long-awaited trade treaty early in the new year.Wall Street hit all-time highs again on Thursday as U.S. Treasury Secretary Steven Mnuchin said the initial trade deal had been penned down and would be signed in early January, dispelling fears of another escalation in the tariff dispute.

(Source:Business Today, ET Auto, Business Today, the Hindu, Investing)

Forthcoming Corporate Actions (23rdDecember to 28th December)

Security Name Ex-Date Purpose Security Name Ex-Date Purpose
CHOLAFIN 23-Dec-19 Interim Dividend – Rs. – 1.00 AXITA 26-Dec-19 Bonus issue 1:1
KESORAMIND 24-Dec-19 Spin Off BALMLAWRIE 26-Dec-19 Bonus issue 1:2
ABANSENT 26-Dec-19 Interim Dividend – Rs. – 0.10

Source:BSE, Elite wealth Research

Upcoming Board Meetings (23rdDecember to 28th December)

Symbol Purpose BM Date Symbol Purpose BM Date
AICHAMP Preferential Issue of shares 23-Dec-19 ULTRACAB General 24-Dec-19
HINDSECR General 23-Dec-19 ARISE General 25-Dec-19
NIITTECH Buy Back of Shares 23-Dec-19 KGL Quarterly Results 25-Dec-19
PGEL General;Preferential Issue of shares 23-Dec-19 EARUM General 26-Dec-19
SOLIDCO General 23-Dec-19 GENESIS General 26-Dec-19
SUNEDISON Employees Stock Option Plan 23-Dec-19 KHAITANLTD Quarterly Results 26-Dec-19
SUNFLAG General 23-Dec-19 SAIMOH General 26-Dec-19
VISIONCINE General 23-Dec-19 VINTRON General 26-Dec-19
DECCAN General 24-Dec-19 AMFL General 27-Dec-19
FERMENTA Bonus issue;ESOP 24-Dec-19 BHARATAGRI General 27-Dec-19
GPIL Scheme of Arrangement 24-Dec-19 MANPASAND Quarterly Results 27-Dec-19
HARME General 24-Dec-19 RITES Interim Dividend 27-Dec-19
KSERASERA General 24-Dec-19 ZEXDONTR General 27-Dec-19
LANCER General 24-Dec-19 AUTOPAL General 28-Dec-19
MIDINFRA General 24-Dec-19 EUROTEXIND General 28-Dec-19
SBC Quarterly Results 24-Dec-19 POPULARES General 28-Dec-19
STAMPEDE General 24-Dec-19 XOINFO General 28-Dec-19

Source: BSE, Elite wealth Research

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 DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


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