Indian Market Outlook:

The Key Benchmark indicesrising towards fresh record highs on Friday hit by a geopolitical storm which pushed the Sensex and Nifty lower for the week, underperforming the broader market indices.Benchmark indices witnessed a sudden reaction after the United States of America’s airstrike in Iraq, which killed top Iranian commander QassemSoleimani and fuelled risk-off sentiment. Reacting to the news, the crude oil prices rose by about $3/bbl, and the Rupee plunged by 0.54 percent against the US Dollar.In the week ended on Friday, the Sensex fell 110.53 points or 0.27 % to settle at 41,464.61. The Nifty 50 index fell 19.15 points or 0.16% to settle at 12,226.65.Midcaps and small caps have finally started picking up pace and frontline stocks have started showing cracks. Foreign portfolio investors (FPIs) bought equities worth Rs.497.32crore over the past five trading sessions while domestic institutional investors invested Rs.29.61 crore. On the macro front Industrial Production for November 2019 will be announced on 10 January 2020. The market is likely to witness momentum from the midcap bulls, while largecaps may experience a profit booking. Certain sectors such as infrastructure and cement should continue to see action until the Union Budget. Pharma, on the other hand, looks attractive.

Latest Spot Price (in US $)

Precious Metal Current Price Change (%) 3 Month 6 Month 1 Year
Gold 1,552.40 2.26 2.61 9.05 17.49
Silver 18.15 1.17 3.01 10.60 13.94
Platinum 988.55 4.35 11.64 13.46 21.47
USD/INR 71.77 0.45 1.34 4.67 1.95
Crude 63.05 2.15 19.39 11.00 22.21

Global Weekly Events

Date Region Event Description Forecast Previous
Jan 06,2020 GBP Composite PMI (Dec) 48.6 48.5
Jan 07,2020 USD ISM Non-Manufacturing PMI (Dec) 54.5 53.9
Jan 10,2019 INR Industrial Production (YoY) (Nov) -3.8%
Jan 10,2020 USD Nonfarm Payrolls (Dec) 160K 266K
Jan 10,2020 USD Unemployment Rate (Dec) 3.5% 3.5%

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 0.16% 0.33%
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(3rd Jan) Change %Change
BSE Sensex 41,464.61 -110.53 -0.27
Nifty 12,226.65 -19.15 -0.16
Mid Cap 15,114.55 185.33 1.24
Small Cap 13,988.89 441.08 3.26
Bank Nifty 32,069.25 -343.10 -1.06

 

Global Indices Closing(3rdJan) Change %Change
Dow Jones 28,634.88   -10.38 -0.04
Nasdaq 9,020.77     14.15  0.16
FTSE 7,622.40    -22.50 -0.29
Nikkei 23,656.62  -181.10 -0.76
Hang Seng 28,451.50   226.08  0.80
Shanghai Com 3,083.79     78.75  2.62

 

Net Inflow (Cr) FII DII
30-Dec-2019     -130.52 201.32
31-Dec-2019  -1,265.10  585.07
01-Jan-2020 -58.87  208.47
02-Jan-2020 688.76   63.95
03-Jan-2020  1,263.05  -1,029.20
Total 497.32 29.61

 

Top Gainers Closing Price Prev Close Chg (%)
Indiabulls Housing 329.60 301.00 9.50
Tata Motors 191.10 176.15  8.49
GAIL India 125.65 118.55  5.99
Adani Ports     382.50    363.70 5.17
Sun Pharma 444.60 426.00  4.37

 

Top Losers Closing Price Prev Close Chg (%)
Zee Entertainment 273.70 299.00 -8.46
Bajaj Auto 3072.05 3241.95 -5.24
Eicher Motors 21189.25 22222.35 -4.65
TItan 1139.70 1191.45 -4.34
Asian Paints 1751.40 1812.25 -3.36

Economic News:

  • Goods and services tax collections grew about 9% in December to Rs 1.03 lakh crore, from Rs 94,726 crore a year earlier. An official said this improvement had come largely because of steps taken to increase compliance and check evasion. Collections expanded 6% year-on-year in November, after falling for the previous two months. Maharashtra achieved the highest GST collection at Rs 16,530 crore, a 22% increase from December last year. From the total, collections of central GST (CGST) were Rs 19,962 crore and state GST (SGST) were Rs 26,792 crore.

 

  • India’s manufacturing industry expanded at its fastest rate in ten months in December with a solid rise in factory orders boosting production growth at the end of 2019, a private survey showed on Thursday. The IHS Markit India Manufacturing PMI rose to 52.7 in December from 51.2 in November, remaining above the 50-mark threshold that separates contraction from expansion. At the sub-sector level, growth was led by consumer goods, though intermediate goods also made a stronger contribution to the headline figure.

Industry News:

  • Indian auto industry wrapped up one of its most difficult periods in the year 2019 as sales of cars and SUVs went into a free fall, witnessing the biggest decline in over two decades as rising uncertainties, difficult financing, and the economic slump kept buyers away despite heavy discounts. Such had been the pressure that the numbers fell despite the entry of new brands such as Kia Motors and MG Motors, which surprisingly managed a strong opening even in a difficult market.

 

  • Finance Minister NirmalaSitharaman on Tuesday unveiled Rs 102 lakh crore of infrastructure projects that will be implemented in the next five years as part of the government’s spending push in the infrastructure sector. She said the projects in power including renewable sector, railways, urban development, irrigation, mobility, education, health, water and digital will form the bulk of the infrastructure investment under National Infrastructure Pipeline.

Company News:

  • Housing Development Finance Corporation (HDFC) said it will raise up to Rs 5,000 crore by issuing bonds on a private placement basis to fund its long-term capital needs. The issue size of the bond issue is Rs 3,000 crore with an option to retain oversubscription up to Rs 2,000 crore. The company will issue secured redeemable non-convertible debentures of face value of Rs 10 lakh each. It will bear coupon rate of 7.50 per cent with tenure of 5 years. The minimum subscription limit is ten debentures of Rs 10 lakh each and in multiple of one debenture thereafter.

 

  • The government awarded Oil and Natural Gas Corporation (ONGC) all seven oil and gas blocks that were on offer in the fourth round of Open Acreage Licensing Policy (OALP). The current round added 18,510 square kilometre (sq km) to India’s total exploration area. Of the seven blocks, five are located in Madhya Pradesh and one block each in Rajasthan and West Bengal.

 

  • With total sales of 133,296 passenger vehicles, the country’s leading carmaker Maruti Suzuki India has recorded 2.4 per cent year-on-year rise in car sales in the domestic market during December, as higher demand for compact models such as New WagonR offset a slump in small cars. After including exports and sales to other original equipment manufacturer (OEM), the firm clocked a 3.9 per cent rise in sales to 133,296 vehicles. Its popular models such as Alto, which are categorised by the company as ‘mini’ cars, saw sales drop 13.6 per cent to 23,883 pieces.This was more than offset by a near 28 pe cent rise in its ‘Compact’ category cars such as New WagonR, Swift, Celerio and Dzire to 65,673.

Global News:

  • The Dow and US stocks fell Friday after the United States killed a top Iranian commander at a Baghdad airport. The military strike concerned investors about the potential for a major escalation in Middle East tensions. The Dow (INDU) closed down 235 points, or 0.8%. The S&P 500 (SPX) ended 0.7% lower, and the Nasdaq Composite (COMP) dropped 0.8%.

 

  • Oil prices jumped to the highest level in more than three months on Friday after the United States killed a top Iranian military commander in Iraq. Tensions between the United States and Iran have flared over the past year as Washington reimposed sanctions on Tehran and in the aftermath of a missile and drone attack on oil installations of the Saudi Aramco company for which U.S. officials blamed Iran.

(Source:Economic Times, BusinessToday, Business Standard, Investing)

Forthcoming Corporate Actions (6thJanuary to 11th January)

Security Name Ex-Date Purpose Security Name Ex-Date Purpose
RITES 9-Jan-20 Interim Dividend – Rs. – 6.00 SWADPOL 9-Jan-20 Stock  Split From Rs.10/- to Rs.1/-

Source:BSE, Elite wealth Research

Upcoming Board Meetings (6thJanuary to 11th January)

Symbol Purpose BM Date Symbol Purpose BM Date
BAJAJELEC General 6-Jan-20 INDSWFTLAB General 8-Jan-20
DRA General 6-Jan-20 NETWORK Quarterly Results 8-Jan-20
ITI Quarterly Results 6-Jan-20 BRIJLEAS Quarterly Results 9-Jan-20
NGIL General 6-Jan-20 CHANDNI General 9-Jan-20
NUTRA General 6-Jan-20 CHANDNIMACH General 9-Jan-20
POOJA Bonus issue 6-Jan-20 EMAMIPAP Quarterly Results 9-Jan-20
PROVESTSER General 6-Jan-20 EMERALL Preferential Issue of shares 9-Jan-20
STERSPN Preferential Issue of shares 6-Jan-20 GTPL Quarterly Results 9-Jan-20
SUBEX Reduction of Capital 6-Jan-20 VISVEN General 9-Jan-20
BETALA Quarterly Results 7-Jan-20 ALEXANDER Interim Dividend;General 10-Jan-20
COASTCORP Amalgamation;General 7-Jan-20 ICSL Quarterly Results 10-Jan-20
FINKURVE Preferential Issue of shares 7-Jan-20 INDIANACRY Quarterly Results 10-Jan-20
GMBREW Quarterly Results 7-Jan-20 INFY Quarterly Results 10-Jan-20
INDINFR General 7-Jan-20 KORE Quarterly Results 10-Jan-20
MCLOUD General 7-Jan-20 NEH Voluntary Delisting of Shares 10-Jan-20
MDRNTHR-B Quarterly Results 7-Jan-20 PGFOILQ General 10-Jan-20
MODISNME General 7-Jan-20 SUPREMEINF Scheme of Arrangement 10-Jan-20
MUDRA General 7-Jan-20 SWORDEDGE General 10-Jan-20
ALPHA Quarterly Results 8-Jan-20 UTTAMSTL Quarterly Results 10-Jan-20
HELPAGE General 8-Jan-20 DMART Quarterly Results 11-Jan-20
INDITALIA General 8-Jan-20 KCDGROUP Quarterly Results 11-Jan-20
INDSILHYD Dividend on Preference Shares 8-Jan-20 WELCURE Quarterly Results 11-Jan-20

Source: BSE, Elite wealth Research

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