Midday Review

Date Heading Details
17-Dec-2018   15:01 Hrs IST Sensex, Nifty at day's high <p align="justify">Key Indian equity benchmarks extended their gains in late afternoon session to trade near their intraday high points, despite weak opening in European markets. Gains led by Metal, Energy and Utilities along with rally in broader markets, also supported the markets. Some comfort came with deputy governor Viral Acharya's statement that the Reserve Bank prefers fundamental changes to smoothen loan flow to micro-businesses through a public credit registry, rather than doling out forbearances. Adding some optimism, the Electronics and IT Minister Ravi Shankar Prasad said that the Indian government will focus on manufacturing of medical electronics, defence electronics and scaling up the manufacturing capacity of automobile electronics, as part of its plan to grow Indian digital economy to $1trillion. Traders paid no heed towards a report showing that as many as 369 infrastructure projects, each worth Rs 150 crore or above, have shown cost overruns to the tune of over Rs 3.58 lakh crore owing to delays and other reasons. </p><p align="justify">On the sectoral front, agri stocks came under pressure, as the Agriwatch Agri Commodities Index dipped 0.19% to 107.96 during the week ended December 15, 2018, from 108.16 the previous week, while airlines stocks were trading lower, as IATA chief Alexandre de Juniac said that competitive air ticket prices are a strong stimulator for demand in India but a pricing policy that makes airlines lose too much money is a problem.</p><p align="justify">On the global front, European markets were trading in red, as Eurozone private sector grew at the slowest pace in more than four years during December, suggesting that the 19-nation economy is set to end this year with a whimper. The flash Composite purchasing managers' index, or PMI, which combines manufacturing and services, fell to a 49-month low of 51.3 from 52.7 in November. However, Asian markets were trading in green. </p><p align="justify">The BSE Sensex is currently trading at 36278.00, up by 315.07 points or 0.88% after trading in a range of 36123.62 and 36296.53. There were 23 stocks advancing against 8 stocks declining on the index.</p><p align="justify">The broader indices were trading in green; the BSE Mid cap index was up by 0.26%, while Small cap index was up by 0.26%.</p><p align="justify">The top gaining sectoral indices on the BSE were Metal up by 1.80%, Energy up by 1.43%, Utilities up by 1.23%, Oil &amp; Gas up by 1.22% and Power up by 1.17%, while Consumer Durables down by 0.33%, IT down by 0.32%, TECK down by 0.26%, Telecom down by 0.17% and Realty down by 0.16% were the top losing indices on BSE.</p><p align="justify">The top gainers on the Sensex were Tata Motors - DVR up by 4.42%, Tata Motors up by 4.37%, Power Grid Corporation up by 3.50%, Vedanta up by 2.96% and HDFC up by 2.72%. On the flip side, Kotak Mahindra Bank down by 2.62%, Infosys down by 1.52%, Bharti Airtel down by 0.83%, Hero MotoCorp down by 0.73% and SBI down by 0.38% were the top losers.</p><p align="justify">Meanwhile, amid factors like improved gross fixed capital formation and higher government expenditure, credit rating agency, Care Ratings in its latest report has said that the investment climate in India has improved. The rating agency also highlighted rising government's spending in the sectors like infrastructure, housing and defence.</p><p align="justify">As per the report, overall capex of the government in the first 7 months of the year increased to Rs 1.77 trillion from Rs 1.62 trillion last year. Besides, capacity utilisation has also been picking up in recent times (Q1FY18 to Q4FY18). But, Care Ratings pointed that capacity utilization had a dip in the last available quarter (Q1FY19) and would need watching, noting that lower capacity utilisation can disincentives companies' new investments.</p><p align="justify">Besides, Care Ratings said that during April-Sep 2018, new investment projects have fallen and the same happened in completed projects. The rating agency further said that implementation stalled projects have also fallen. However, improvement seen in projects revived.</p><p align="justify">The CNX Nifty is currently trading at 10886.75, up by 81.30 points or 0.75% after trading in a range of 10844.85 and 10890.60. There were 36 stocks advancing against 14 stocks declining on the index.</p><p align="justify">The top gainers on Nifty were Tata Motors up by 4.34%, Power Grid Corporation up by 3.39%, HDFC up by 2.77%, Vedanta up by 2.65% and ICICI Bank up by 2.13%. On the flip side, Kotak Mahindra Bank down by 2.80%, Indiabulls Housing Finance down by 1.60%, Bajaj Finserv down by 1.52%, Infosys down by 1.42% and Bharti Airtel down by 0.81% were the top losers.</p><p align="justify">Asian markets were trading mostly in green; Nikkei 225 surged 132.05 points or 0.62% to 21,506.88, Straits Times advanced 31.13 points or 1.01% to 3,108.22, KOSPI rose 1.71 points or 0.08% to 2,071.09, Taiwan Weighted strengthened 13.37 points or 0.14% to 9,787.53 and Shanghai Composite gained 4.23 points or 0.16% to 2,597.97. On the flip side, Jakarta Composite lost 54.85 points or 0.89% to 6,114.99 and Hang Seng was down by 6.81 points or 0.03% to 26,087.98.</p><p align="justify">All European markets were trading mostly in red; UK's FTSE 100 dipped 22.01 points or 0.32% to 6,823.16, Germany's DAX fell 11.68 or 0.11% points to 10,854.09 and France's CAC was down by 15.27 points or 0.31% to 4,838.43.<br></p>
17-Dec-2018   13:01 Hrs IST Local bourses hold gains in afternoon deals <p align="justify">Indian equity benchmarks held their gains in afternoon session, as buying momentum in the equities persisted amid strengthening of rupee. Sentiments remained positive with Care Ratings in its latest report stating that the investment climate in India has improved amid factors like improved gross fixed capital formation and higher government expenditure. It also highlighted rising government's spending in the sectors like infrastructure, housing and defence. Some optimism also came with commerce ministry's latest data showed that India's exports grew by a meager 0.80% to $26.5 billion in November, even as the trade deficit widened to $16.67 billion. Exporters attributed the marginal export growth in November to high base effect, as the foreign shipments in the comparable month of the previous fiscal were quite high at $26.29 billion. Besides, imports rose by 4.31% to $43.17 billion during the month. On the global front, Asian markets were trading mostly in green, despite weak economic data and U.S.-China trade tensions raised worries about global economic growth. </p><p align="justify">The BSE Sensex is currently trading at 36226.93, up by 264.00 points or 0.73% after trading in a range of 36123.62 and 36268.18. There were 24 stocks advancing against 7 stocks declining on the index.</p><p align="justify">The broader indices were trading in green; the BSE Mid cap index rose 0.24%, while Small cap index was up by 0.23%.</p><p align="justify">The top gaining sectoral indices on the BSE were Metal up by 1.62%, Power up by 1.28%, Energy up by 1.23%, Utilities up by 1.14% and Oil &amp; Gas up by 1.14%, while IT down by 0.38%, TECK down by 0.34%, Telecom down by 0.14%, Realty down by 0.10% and Consumer Durables down by 0.07% were the top losing indices on BSE.</p><p align="justify">The top gainers on the Sensex were Tata Motors up by 4.28%, Tata Motors - DVR up by 4.09%, Power Grid up by 3.37%, Vedanta up by 3.08% and Wipro up by 1.89%. On the flip side, Infosys down by 1.23%, Hero MotoCorp down by 0.99%, Kotak Mahindra Bank down by 0.97%, Mahindra &amp; Mahindra down by 0.37% and Bharti Airtel down by 0.31% were the top losers.</p><p align="justify">Meanwhile, credit rating agency, ICRA in its latest report has said that the hospitality industry is expected to show a strong annual growth of 9-10 percent over the next four years, on the back of robust domestic demand and a muted supply pipeline. It also said that the domestic demand will continue to be driven by increased air connectivity, and higher appetite for domestic leisure travel in FY19. That apart, it expects domestic demand to get a boost from the robust corporate performance which has witnessed the strongest top line growth in the last 10 quarters in the September quarter of the current fiscal year. </p><p align="justify">However, ICRA warned that the supply side is likely to lag demand over the medium term and grow at a subdued 3.6 percent over the next five years. But, it said that the situation is set to improve given the inventory and the number of premium rooms across 12 key cities is likely to go up from 82,800 in FY18 to 98,900 by FY23. It also pointed out that this low supply growth is expected to be the backbone for the current up-cycle, as demand is expected to grow at a much faster rate. It noted that the demand-supply gap is expected to go up from around 1 percent in FY18 to 5 percent in FY23. It added that margins are likely to expand due to operating leverage, with return of stronger revenue growth.</p><p align="justify">According to the report, interest and debt cover are likely to improve gradually over the medium term but the return on capital employed is expected to remain at sub-cost of capital at least till FY20. It also noted that the total debt for the industry is set to improve to 1.2 times in FY23 from 3.9 times in FY18 and 3.1 times in FY19. It also stated that the debt reduction measures undertaken by some large industry participants have resulted in sizable reduction in leverage levels as of March 2018 as a result return on capital employed is expected to improve upwards of 15 per cent in FY23 from 6.3 per cent in FY18.<br></p><p align="justify">The CNX Nifty is currently trading at 10862.80, up by 57.35 points or 0.53% after trading in a range of 10844.85 and 10878.25. There were 31 stocks advancing against 19 stocks declining on the index.</p><p align="justify">The top gainers on Nifty were Tata Motors up by 4.37%, Power Grid up by 3.28%, Vedanta up by 2.93%, ICICI Bank up by 2.10% and Wipro up by 1.85%. On the flip side, Kotak Mahindra Bank down by 2.14%, Bajaj Finserv down by 1.79%, Indiabulls Housing Finance down by 1.50%, Infosys down by 1.33% and Hero MotoCorp down by 1.05% were the top losers.</p><p align="justify">Asian markets were trading mostly in green; Nikkei 225 surged 132.05 points or 0.62% to 21,506.88, Straits Times advanced 34.88 points or 1.13% to 3,111.97, KOSPI rose 1.71 points or 0.08% to 2,071.09, Hang Seng increased 18.16 points or 0.07% to 26,112.95 and Taiwan Weighted strengthened 13.37 points or 0.14% to 9,787.53.</p><p align="justify">On the flip side, Shanghai Composite declined 3.93 points or 0.15% to 2,589.81 and Jakarta Composite was down by 64.46 points or 1.04% to 6,105.38.</p><p align="justify"><br></p><p align="justify"><br></p>
17-Dec-2018   12:03 Hrs IST Indian markets maintain upward momentum
17-Dec-2018   11:16 Hrs IST Local equities continue firm trade in morning deals
17-Dec-2018   10:19 Hrs IST Benchmarks trade with traction in early deals
14-Dec-2018   14:58 Hrs IST Markets ignore easing WPI inflation; Sensex down by 25 points
14-Dec-2018   12:31 Hrs IST Lackluster trade continues on Dalal Street
14-Dec-2018   11:03 Hrs IST Local equities pare initial gains to trade flat
14-Dec-2018   10:19 Hrs IST Benchmarks trade in fine fettle in early deals; Sensex reclaims 36K mark
13-Dec-2018   15:01 Hrs IST Markets off day's high

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