STOCK MARKET - Bajaj Finance hits new high on robust June quarter numbers

STOCK MARKET - Bajaj Finance hit a new high of Rs 1,578, up 4% on BSE in intra-day trade, after the company reported a better than expected 42% year on year (YoY) jump in its standalone net profit at Rs 602 crore for the quarter ended June 2017 (Q1FY18). The company had profit of Rs 424 crore in the same quarter year ago.

The calculated net interest income (revenue from operations minus finance cost) grew 48% to Rs 2,072 crore against Rs 1,397 crore in the corresponding quarter of previous fiscal.

Analysts on an average had expected profit of Rs 557 crore on net interest income of Rs 1,782 crore.

The company’s assets under management (AUM) as on Q1FY18 was up 39% to Rs 68,883 crore from Rs 49,608 crore in Q1FY17.

Gross non-performing assets (NPA) as a percentage of gross advances stood at 1.7% in June quarter against 1.68% in March quarter. Net NPA stood at 0.53% against 0.44% in previous quarter. Gross NPA and Net NPA as of June 2016, was at 1.47% and 0.41% respectively.

At 12:31 pm; the stock was up 3.5% at Rs 1,566 against 0.62% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled A combined 1.34 million shares changed hands on the BSE and NSE so far.

STOCK MARKET- Top technical calls from Prabhudas Lilladher

STOCKMARKET - Few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

BATA INDIA - BUY    
CMP: Rs 569.20      
TARGET: Rs 600      
STOP LOSS: Rs 545

The stock has made a higher bottom formation like pattern in the daily chart and with the reversal of trend in RSI, the stock looks attractive for an up move to scale further new heights. The volume participation has been a decent one and with favourable indicators supporting, we recommend a buy in this stock for an upside target of 600 keeping a stop loss of 545.
 
SHRIRAM CITY UNION FINANCE - BUY    
CMP: Rs 2,309.80      
TARGET: Rs 2,600  
STOP LOSS: Rs 2,150

The stock has made a decent correction from the peak of 2,620 to around 2,200 levels and has bottomed out there and now is showing a trend reversal with a positive bullish candle pattern. The RSI indicator has reversed its trend signaling a buy and recovered from the oversold zone and with good volume activity going on, we recommend a buy in this stock for an upside target of 2,600 keeping a stop loss of 2,150.

OIL INDIA - BUY    
CMP: Rs 277.65      
TARGET: Rs 310      
STOP LOSS: Rs 258

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MCX partners with Thomson Reuters to launch co-branded commodity indices

STOCK MARKET - Multi Commodity Exchange of India (MCX) on Tuesday announced that it has joined hands with Thomson Reuters to launch co-branded commodity indices in India. The move follows signals from the Securities and Exchange Board of India (Sebi) to open up commodity markets.

While Sebi has already allowed trading in commodity option, it had long been deliberating allowing allowing trading in indices. This is because unlike equity indices, commodity indices are not directly useful for hedging in general but are used more for assets allocation.

According to sources, once MCX is ready with the first set of new indices, prepared using more scientific methods, existing indices for metals, agri-products and other commodities are likely to be phased out.

Sources close to the development said, "In the first phase, MCX proposes to have around 5-6 Indices -- a few product-based Indices, a few single-commodity ones and a composite index. The exchange is trying to be ready for dissemination by September 2017."

Once index trading is permitted, Sebi is expected to look at allowing commodity-specific exchange traded funds (ETFs) similar to gold ETFs and portfolio management services (PMS). These were banned a few years ago when the Forward Markets Commission (FMC) was regulating commodity derivatives.

A commodity broking industry veteran said that they had recently met Sebi officials and proposed to allow PMS in commodities, as now the market is under a strong and powerful regulator.

Sebi has also allowed category-3 alternative investment funds or hedge funds in commodity derivatives, and has moved to integrate businesses of commodity broking and share broking, which means that all businesses can be transacted under single entity, allowing fungibility of capital and clients' margins.

LIC reduces 2.14% stake in Tata Global Beverages, sells 1.35 crore shares

STOCK MARKET - Life Insurance Corporation (LIC) has reduced its stake in Tata Global Beverages by 2.14 per cent, selling 1.35 crore shares in the market.

The public sector insurer, which had 9.85 per cent stake earlier, brought down its shareholding in the company to 7.70 per cent by selling shares between July 20, 2016, and July 4, 2017, Tata Global Beverages (TGBL) said in a filing to BSE.

TGBL's tea brand includes Tata Tea, Tetley, Good Earth Teas, Vitax, teapigs and JEMCA.

It is the world's second-largest manufacturer and distributor of tea with significant brand presence in over 40 countries across Asia, Europe, North America, the Middle East, Africa and Australia.

In coffee segment, it has brands as Eight O'Clock and Grand. The Tata group firm also operates a coffee chain with Starbucks in India in a 50:50 joint venture.

Shares of TGBL were trading at Rs 175 apiece, down 1.02 per cent, on BSE.

Hindustan Unilever, Maruti Suzuki, ACC, Power Grid hit new highs

STOCK MARKET - Five companies – Hindustan Unilever (HUL), Maruti Suzuki India, Adani Ports and Special Economic Zone (SEZ), ACC and Power Grid Corporation – from the Nifty50 index hit their respective all-time highs on the National Stock Exchange (NSE) in intra-day trade on Tuesday.

Other companies like Biocon, Birla Corporation, Dalima Bharat, Future Consumer, OCL India, Quess Corp and Tata Investment Corporation from the Nifty 500 and S&P BSE 500 indices hit their record highs too in today's trade.

HUL hit a new high of Rs 1,190, up 3% on BSE in intra-day, ahead of April-June quarter (Q1FY18) results today.

Analysts at Edelweiss Securities expect HUL to record a volume decline of around 1-2% year-on-year (YoY) on a base of 4% YoY (volumes grew 4% YoY in Q4FY17 on a base of 4% YoY) owing to impact in CSD (canteen-store-departments) sales (CSD offtake has been negligible over past 1 month – CSD contributes 5-6% of sales), destocking in wholesale channel owing to GST.

GST albeit will not impact the consumer demand but destocking by wholesalers is inevitable - share of wholesale lower for HUL and hence impact would be lower compared to many other staple companies.

HCL Info surges 17%; company clarifies on reports of tying up with Apple

STOCK MARKET - HCL Infosystems surged 17% to Rs 54.90 on the BSE on the back of heavy volumes after the company said that it is in various stages of discussion with multiple original equipment manufacturers (OEMS) for distribution arrangement of their products.

“As part of the overall strategy, the company keeps evaluating various strategies from time to time to create value for shareholders. In line with the same, the company had decided to move from Single brand to Multi brand distribution model in our Consumer Distribution business,” HCL Infosystems said in a regulatory filing after BSE sought clarification from the company on the news report stating Apple is likely to tie up with HCL Info for greater presence.

"As a result of the change in our strategy, we have been in various stages of discussion with multiple OEMS for distribution arrangement of their products," it added.

As and when any definitive agreement is signed by the company with any of the OEMs that result in material impact on the business, HCL Infosystems said.

The trading volumes on the counter jumped by more than 10-fold with a combined 22.05 million shares changed hands on the NSE and BSE till 01:50 pm.

Nifty outlook and few trading ideas by Chandan Taparia of MOSL

STOCK MARKET - Nifty Outlook and few trading ideas by Chandan Taparia, Derivatives and Technical Analyst at MOSL:

NIFTY OUTLOOK

Nifty index continued its up move and made a new life time high of 9,928. However, it traded in a smaller trading range of 33 points but managed to give the highest daily close above 9,900 mark. Now, it has to continue to hold 9,900 zone to witness an up move towards 9,950-10,000 zones while on the downside supports are seen at 9,850 then 9,820 mark. Index has been making higher top – higher bottom formation and supports are gradually shifting higher which has a bullish implication for ongoing market trend.

Stocks:

DEWAN HOUSING FINANCE CORPORATION - BUY  
Last Close: Rs 456
Stop Loss: Rs 444
Target: Rs 480

DHFL has turned up after the consolidation of last two weeks with the rising trading volumes. RSI indicator is also suggesting a buy signal thus suggesting for an upside move towards 480 levels. Taken support at its rising trend line and holding well above the support of 430 and 444 for last several days.

ICICI BANK - BUY
Last Close: Rs 303
Stop Loss: Rs 297
Target: Rs 315

It has given the consolidation breakout and registered a highest daily close in last 2.5 years. It has given the consolidation breakout from 285 to 295 zones. Thus recommending to hold with the trailing stop loss of 297 for an upside target of 315.

JSW STEEL - BUY
Last Close: Rs 218
Stop Loss: Rs 212
Target: Rs 230

It has retested the breakout zone of 210 and holding the gains with emerging buying interest in the entire sector. Positive breakout with follow up buying suggests a fresh rally towards 230 mark.

Gold settles below Rs 29,000-mark on slack demand, silver rules firm

SHARE MARKET - Gold prices on Monday got below the Rs 29,000-mark by sinking Rs 100 to Rs 28,950 per 10 grams, dragged down by slack demand from local jewellers, even as the metal made headway overseas.

Silver advanced by Rs 180 to Rs 38,180 per kg, riding on increased offtake by industrial units and coin makers, along with a firm trend.

Globally, gold rose by 0.12 per cent to $1,229.90 an ounce after the dollar fell to multi-month lows as the prospects for an interest rate hike this year dimmed due to softer US economic data. Silver rose by 0.19 per cent to $15.98 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 100 each to Rs 28,950 and Rs 28,800 per 10 grams, respectively. The precious metal had gained Rs 190 on Saturday.

Sovereign, however, remained flat at Rs 24,400 per piece of eight grams.

On the other hand, silver ready rose further by Rs 180 to Rs 38,180 per kg and weekly-based delivery by Rs 170 to Rs 37,170 per kg.

Silver coins, however, held steady at Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.