Budget 2018: Top 20 stocks which could see some action on February 1 on Dalal Street

Since it’s the last one, the street expects it to be populist. However, giveaways can only come from either excessive fiscal slippage or higher revenues, most brokerage firms see the possibility of both.

   

Markets are experiencing a strong pre-budget rally which has already pushed benchmark indices to record highs ahead of the big event, Budget 2018 which is also going to be the last full budget of the BJP government.

Since it’s the last one, the street expects it to be populist. However, giveaways can only come from either excessive fiscal slippage or higher revenues, most brokerage firms see the possibility of both.

The fiscal deficit is expected to slip to 3.5 percent in FY18 and 3.3-3.4 percent in FY19; FY18 government capex has stayed on course – we view this as a positive in times of fiscal stress, PhillipCapital said in a report.

While space is limited for any surge in government spending, trend growth pace is expected to persist with focus on roads, metros, housing, irrigation, and defence, it said. The domestic brokerage firm does not see the government going overboard in making this Budget populist, but the rural focus will continue.

Bond yields are discounting higher government borrowings and fiscal slippage, thus incremental rise from current levels is limited. Overall, fewer negatives are expected to come out from this budget.

In FY18, development spending has been weak as oil tailwind faded and tax collections slowed. But, in FY19, brokerage firms expect development spending to revive from 5 percent on a YoY basis in FY18 to 15 percent in FY19 with improving GST compliance 15 percent in FY19 with improving GST compliance.

Commenting on the taxes, Edelweiss said that changes in indirect taxes are unlikely as a) GST Council decides on rates now; b) corporate tax cut unlikely given fiscal pressure; c) some relaxation in income tax slabs/tax rate is expected so as to boost urban disposable incomes.

We have collated a list of 20 stocks across 4 sectors which are likely to remain in limelight around Budget 2018:

Sector Agriculture

Stocks in focus: Dhanuka Agritech, PI Industries and Kaveri Seeds, Chambal Fertilisers and Coromandel International

Brokerage firms are expecting short-term farm loan limit to be increased to Rs 5 lakh from Rs 3 lakh currently which should impact stocks like Dhanuka Agritech, PI Industries, and Kaveri Seeds.

There is another proposal to bring natural gas under GST which would attract 5 percent GST rate. The move would be positive for fertilizer manufacturer Chambal Fertilisers and Coromandel International, Sharekhan said in a report.

Reforms targeting at improving farm income/farm yields such as electronic linkage of mandi's under e-NAM, higher MSPs and the likely increase in rural allocations should auger well for agri-chemical companies like Dhanuka Agritech, Insecticides, and PI Industries.

Brokerage firm expects the amendment to the new investment policy could be made in this Budget. Urea players expect benefits/incentives for investments towards the expansion of urea capacity could impact urea manufacturers like Chambal Fertilisers and Coromandel International.

Sector: Automobile

Stocks in focus: Hero MotoCorp, M&M, Maruti Suzuki India Ltd, Eicher Motors, Tata Motors

Financial incentive may replace vehicles older than 10/15 years. The long-term measures for agri sector to push farmer productivity/ income levels up, and higher JNNURM orders for bus manufacturers and incentives for EVs should also auger well for the sector, Axis Capital said in a report.

Companies which are likely to get positive impact from the proposed changes include names like Hero MotoCorp, M&M, Maruti Suzuki India Ltd.

The incentive for scrapping old heavy commercial vehicles that are more than 10-15 years old should impact companies like Ashok Leyland, Tata Motors, and Eicher Motors.

Sector: Capital Goods, Defence

Stocks: L&T, Kalpataru Power, and KEC International

After 3-4 years of stagnant capex allocation for defence, an increase in defence capital is expected. Edelweiss expects the capital allocation to rise by 8 percent. Companies which manufacture defense-related equipment should benefit positively such as L&T, M&M, BEML, Bharat Electronics, Bharat Forge etc. among others.

Sharekhan expects higher investment in infrastructure development focusing on power transmission and railways which should positively impact stocks like KEC International, Kalpataru, and L&T.

Sector: BFSI

Stocks in focus: SBI, PNB, BOB, PNB Housing, Can Fin Homes, GIC Housing, ICICI Bank, HDFC

Sharekhan expects that Budget would lay out a final blueprint and roadmap of (possible) PSU bank recap plan and steps to improve the bank’s efficiency which should impact PSU stocks like SBI, PNB, as well as Bank of Baroda.

The Modi-government is working towards affordable housing. The steps to promote ‘Housing for All,’ increase in tax exemption for home loans, enhancement of 80C benefits to provide separate brackets. Housing Finance companies such as PNB Housing, Can Fin Homes, GIC Housing are likely to benefit the most.

If the fiscal deficit remains under check it would help in cool-off in bond yields. It will also help in reducing borrowing cost for NBFCs. Banks will avert mark-to-market losses.

To provide parity with life insurance companies Sharekhan expects that if general insurance companies are also exempted from the levy of MAT under section 115JB of Income Tax Act would impact companies like GIC, ICICI Bank, and HDFC Ltd in a positive way.

MORE WILL UPDATE SOON!!

Profit booking likely close to 11,000; 4 stocks which could give up to 10% return

With volatility regime ahead of F&O expiry and earnings season coupled with Budget session due next week, it will be prudent to approach cautiously on long position and maintain a strict stop-loss below 10,600 levels.

  

The Indian equity market continued to post record high levels in its price chart despite turning volatile on a certain session. Although the small and midcap indices remained sluggish during the last week’s trade, Nifty decisively managed to breach its crucial psychological level of 10,900. It failed to sustain and closed marginal below at 10,894 on a closing basis.

On its price chart, the index formed a strong bullish candlestick pattern after breaking above the upper band in trend channel, indicating a positive signal in the upcoming session.

Further, the secondary momentum indicator suggested a strong support with RSI at 72 coupled in MACD at 121 above Signal Line.

Based on Fibonacci Retracement, the index is trading above all the levels with index getting immediate support at 10,650 level and immediate resistance level at 10,906 followed by 10,930 levels.

With volatility regime ahead of F&O expiry and earnings season coupled with Budget session due next week, it will be prudent to approach cautiously on long position and maintain a strict stop-loss below 10,600 levels.

Further, the market may witness a profit booking from a higher level to keep index under pressure and any short-term consolidation to be used as buying opportunity with upside price band at 10,980.

Here is a list of top 4 stocks which could give up to 10% return:

Prakash Industries Ltd: BUY| Target Rs 267 | Stop-loss Rs 230 | Return 10%

Prakash industries witnessed a healthy consolidation at 140 levels during the past month and since then it rebounded back to higher level in its daily price chart and continued to trade on a positive trajectory.

Despite witnessing a marginal consolidation from its 52-weeks high level placed at 276, the scrip recouped higher on the backdrop of volume support.

After closing the last session with 3% gain, the stock has formed a bullish candlestick pattern in its daily price chart coupled with strong support from secondary momentum indicator inclined towards uptrend trajectory.

Currently, the scrip is facing an immediate resistance from its 52-weeks high at 276 levels followed by 193 and major support will be seen at 213 levels. We have a BUY recommendation for Prakash Industries which is currently trading at Rs. 242.30

Balrampur Chini Mills Ltd: SELL | Target Rs 113 | Stop-loss Rs 135 | Return 9%

Balrampur Chini continued to face headwinds in its daily price movement after clocking to 52-weeks high at 182 level in past month and traded on a negative trajectory to close at 122 level, which is just one point above its 52-weeks low.

Further, it witnessed considerable short position on volume which further aided the negative outlook. On the weekly price chart, it continued to form a strong bearish candlestick pattern which is expected to keep the stock under pressure.

Further, the price is currently heading below its crucial level coupled with bearish crossover on its momentum indicator just happening last Thursday.

The stock is facing its resistance at 138 level while the support level at 105 will remain crucial for scrip. We have a SELL recommendation for Balrampur Chini which is currently trading at Rs. 122.70

GRUH Finance Ltd: BUY| Target R s725 | Stop-loss Rs 669 | Return 6%

Despite a flat trading during the initial session, GRUH Finance managed to breakout from upper band price channel and the end the session on positive momentum with over 15 percent gain on an intraday basis.

It also witnessed a similar support from volume context during the same period and end the session on a higher level at 687 on a closing basis.

On the daily price chart, the scrip formed a strong bullish candlestick pattern suggesting a possible uptrend following the last week’s momentum. Further, the RSI at 70 levels indicates a buying action at level coupled with positive MACD at 13.1 still intact above its Signal Line.

With current price trading above all moving average levels, a major support for the scrip is seen at 604 and resistance level at 783 upper band. We have a BUY recommendation for GRUH Finance which is currently trading at Rs. 687.80

Biocon Ltd: BUY| Target Rs. 596 | Stop-loss Rs 552 | Return 5 %

Biocon traded on uptrend trajectory after rebounding back from its lower level at 318 and continued to trade upward in its long-term price chart registering peak.

In the last trading session, the scrip witnessed a crucial breakout from its resistance level which was placed at 566 level, and thus indicated a positive momentum build up in its price chart.

With considerable growth in volume parallel to price movement during last week, the scrip formed a solid bullish candlestick pattern on its weekly price chart.

Further, a secondary momentum indicator continued to trade a positive level coupled with bullish crossover happening soon at the current level.

With price trading above all the levels in the last session, a major support for the scrip is placed at 539 levels and resistance level at 575 followed by 602 level. We have a BUY recommendation for Biocon which is currently trading at Rs. 569.3

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: 11 stocks are in focus on January 22, 2018

Kotak Mahindra Bank, RIL and HDFC Bank, among others, are being tracked by investors on Monday.

  

Brokerage: Nomura | Rating: Neutral | Target: Rs 1,150

Nomura said that miss on margin was netted off by better-than-expected profitability of cap market related. It sees growth picking up and that the bank continued to deliver on extracting cost efficiency. The brokerage expects core RoEs to inch up to 16% by FY20. It prefers HDFC Bank given relatively reasonable valuations.

Brokerage: Macquarie | Rating: Neutral | Target: Rs 1,111

The global research firm observed that the bank had a stable quarter; subsidiaries shine as cons net profit beats estimates. Further, its arms Kotak Sec, Kotak Cap saw net profit growth of 80%/400% YoY. Additionally, standalone net profit was 20% ahead of its estimates. Macquarie likes the bank but its valuations leave limited potential for upside. Going forward, loan growth pick-up, superior subsidiary performance key catalysts for the stock.

Brokerage: Deutsche Bank | Rating: Hold | Target: Raised to Rs 1,100

The global investment bank observed that CASA traction remains strong, investment in digital improving efficiency. Further, a delay in economic recovery is a key downside risk for the stock. Fast, profitable growth after merger key upside risks for the stock.

Jubilant Foodworks

Brokerage: Macquarie | Rating: Outperform | Target: Raised to Rs 2,581

Macquarie said that massive operating leverage the most impressive among otherwise excellent q3 numbers. Even On 2-yr CAGR basis, same-store-sales growth was healthy. Further, it believes that better affordability & product quality will continue to drive SSSG growth. The company was 32-40% ahead of consensus earnings; FY18 EPS is ahead of consensus FY19.

Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 2,800

CLSA said that the multi-quarter high same-store-sales growth & margins, while EPS upgrade cycle continues. Slow expansion for both brands was on expected lines.

HDFC Bank

Brokerage: CLSA | Rating: Buy | Target: Rs 2,340

The brokerage expects 20% CAGR in earnings over FY17-20. Q3 PAT was In-line; encouraged to see 32% yoy growth in operating profit. CASA growth slowed albeit on a high base. Further, a planned capital raise will aid scope for network expansion.

Brokerage: Macquarie | Rating: Outperform | Target: Raised to Rs 2,676

Macquarie said that the firm is a strong compounding story with no asset quality issues. It has raised earnings estimates by 2-4% for Fy18-20.

Brokerage: Nomura | Rating: Buy | Target: Unchanged at Rs 2,350

Nomura expects the firm to delivery best in class PPOP growth over FY17-20. Current valuations of 18x fy20 EPS are not demanding.

Kansai Nerolac

Brokerage: CLSA | Rating: Outperform

CLSA said that impact of higher input prices evident in the company’s Q3, while margin is at multi-quarter low. Further hardening in input prices remains a concern. It also expects the company to offset hardening of input prices with price hikes. CLSA has trimmed forecasts by 2-3 percent.

ITC

Brokerage: Jefferies | Rating: Buy | Target: Raised to Rs 320

The brokerage observed that risk-reward for the stocks is favourable. Further, single-digit tax increase in cigarettes in budget will re-rate the stock.

Brokerage: Macquarie | Rating: Neutral | Target: Rs 304

The brokerage said that cigarettes volume remains under pressure and have cut estimates by 2 percent due to lower realisation. There is limited downside for the stock, have valuation support at current levels.

Brokerage: Deutsche Bank | Rating: Buy | Target: Raised to Rs 350

Deutsche Bank said that cigarette volume decline of 4% qoq was in-line with estimates. A high probability of rational tax increase may a potential re-rating event.

Reliance Industries

Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 1,150

The global investment bank said that strong petchem performance drives EBITDA growth. Further, Jio’s result reflects continued momentum in subscriber additions. It expects EBITDA growth of 41% CAGR over FY17-19.

Brokerage: Credit Suisse | Target: Neutral | Target: Raised to Rs 855

Credit Suisse said that robust EBITDA growth to continue as expansions ramp up. It also raised FY18/19 estimates by 15/9 percent.

Adani Ports

Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 480

The global research firm said that positive exim sector momentum buoys prospects.

ICICI Pru

Brokerage: Nomura| Rating: Buy | Target: Raised to Rs 540

The brokerage said that it is the preferred life insurance pick. VNB Margin Surprisingly Expands To 13.7% In 9MFY18 From 10.1% In FY17. It expects FY18 margin at 14.7% & long-term expectation at 16-16.5%.

HDFC Life

Brokerage: Nomura | Rating: Buy | Target: Rs 450

Nomura said that it expects steady performance to continue. Further, the firm is a long-term compounder with 20%+ roev. Current valuations should restrict near-term share performance

Wipro

Brokerage: Macquarie | Rating: Neutral | Target: Cut to Rs 290

Client-specific issues may keep co away from industrial level growth for 2-3 quarters. Management is optimistic on macro outlook for CY18.

Brokerage: Credit Suisse | Target: Neutral | Target: Rs 270

Credit Suisse said that Europe & financial performed well while energy has struggled. Client generating revenue of at least $50 m has increased 41 from 33.

HCL Tech

Brokerage: Macquarie | Rating: Outperform | Target: Rs 1,140

Macquarie said that pick up in deal momentum & continued investment in IP partnerships key takeaways. Further, it marginally lower EPS By 1%.

MORE WILL UPDATE SOON!!

India to become fastest growing large economy in 2018: Report

According to a Sanctum Wealth Management report, when the rest of the world offers low growth and insufficient structural change, India, by contrast, is seen as a reforming economy with the prospect of strong long-term growth.

  

India will overtake China to be the fastest growing large economy in 2018 and the country's equity market will become the fifth largest in the world, says a report.

According to a Sanctum Wealth Management report, when the rest of the world offers low growth and insufficient structural change, India, by contrast, is seen as a reforming economy with the prospect of strong long-term growth.

India will become the fastest growing large economy in the world, eclipsing China. Indian equity market will jump to become the fifth largest in the world..

At a time when developed economies are cheering 2-3 per cent growth, India is focused on breaching 7.5 per cent.

Moreover, India also benefits from a favourable contrast to other emerging markets. In particular, the fact that China is downshifting to a slower pace of growth.

Prospective returns for equities are much higher than the 6-8 per cent that one can expect from fixed income.

However, if inflation or rates rise, markets are not likely to register further gains. Muted earning could also impact market performance.

Considering the fact that Nifty50 is in a broader uptrend, a sustained move beyond the 10,490-10,580 levels could lead to a rally towards 11,200-11,500 levels in the medium term.

As per the report, a major factor that has changed is that the domestic buyer now sets market prices. Domestic mutual funds bought equities worth USD 15.3 billion against USD 8 billion by foreign investors in 2017.

The report that identifies various big-picture trends at play this year in the domestic and global economy, noted that Aadhaar, Jan Dhan, Demonetisation, GST, are working to create a new inclusive infrastructure in India.

Given the rapid pace at which the Indian economy is developing, investors today are faced with the need to make crucial investment decisions amidst multiple cross currents, using a complex array of choices.

MORE WILL UPDATE SOON!!

Asian stocks record slight declines; investors focus on political developments

Japan's Nikkei 225 hovered around the flat line in the early going. Automakers were mixed: Toyota declined 0.66 percent while Mitsubishi Motors tacked on 1.04 percent. Technology stocks traded mostly higher, with Sony rising 1.09 percent and SoftBank Group advancing 0.71 percent.

  

Asian markets traded lower early on Monday as investors kept an eye on political developments in the U.S. after a government shutdown began last week. Meanwhile, the euro and pound both traded higher following weekend political moves.

Japan's Nikkei 225 hovered around the flat line in the early going. Automakers were mixed: Toyota declined 0.66 percent while Mitsubishi Motors tacked on 1.04 percent. Technology stocks traded mostly higher, with Sony rising 1.09 percent and SoftBank Group advancing 0.71 percent.

Meanwhile, South Korea's Kospi declined 0.54 percent as index heavyweight Samsung Electronics fell 2.11 percent in early trade. Other technology stocks also declined, with chipmaker SK Hynix declining 1.77 percent and LG Display slipping 0.49 percent.

The manufacturing, finance and retail sectors traded lower for the most part, with steelmaker Posco losing 2.72 percent and Lotte Shopping edging lower by 0.43 percent.

Down Under, the S&P/ASX 200 gave up gains seen earlier in the session to trade lower by 0.07 percent. The heavily-weighted financials sector declined 0.51 percent, weighing on the broader index. Shares of Commonwealth Bank sank 1.1 percent, underperforming other banking names in the morning.

National Australia Bank, another of the country's "Big Four" banks, is reportedly considering spinning out its wealth arm for a potential listing, the Australian Financial Review reported, citing sources. NAB shares were lower by 0.41 percent.

Stateside, the U.S. government shutdown continued for a second day yet there were some signs of progress on Sunday, with Republicans appearing unified over plans to end the impasse with a temporary solution. Democrats, however, want an immigration agreement in place before they support a spending plan.

"The shutdown in the U.S. looks set to dominate market attention this week. It is likely to result in plenty of noise, but no dramatic shifts in trends," ANZ Research said in a morning note.

U.S. futures tracked lower on Monday, with Dow Jones industrial average futures last declining by 49 points. On Friday, stocks had closed in positive territory as earnings season rolled on.

Currency watch

Against the yen, the dollar traded at 110.70 — below levels around the 111 handle seen on Friday. The dollar index, which tracks the dollar against a basket of six currencies, traded at 90.529.

The euro rose after Germany's Social Democrats agreed to embark on formal coalition negotiations with Chancellor Angela Merkel's government following a weekend party vote. The common currency pared some gains to trade at $1.2251 at 8:09 a.m. HK/SIN after climbing as high as $1.2274 earlier.

French President Emmanuel Macron's weekend comments were also in focus for currency markets. Macron said the U.K. could have a bespoke arrangement with the European Union following Brexit, although London would not have the same degree of access to the bloc if the U.K. left the single market, Reuters reported. The pound last traded at $1.3884.

MORE WILL UPDATE SOON !!

What changed for the market while you were sleeping? 15 things you should know

A list of important headlines from across news agencies that could help in your trade today.

  

The Nifty which started on a muted note on Friday rose to fresh record highs towards the end of the trading session and made a strong bull candle on the daily candlestick charts. The candle engulfed the profit booking seen in the previous session.

The Nifty which opened at 10,829.20 slipped below 10,800 to hit an intraday low of 10,793. It bounced back from its 5-day exponential moving average (DEMA) placed at 10,793 to close 77 points higher from its previous close at 10,894.70.

According to Pivot charts, the key support level is placed at 10,823.47, followed by 10,752.23. If the index starts to move higher, key resistance levels to watch out are 10,936.37 and 10,978.03.

The Nifty Bank closed at 26,909.5. Important Pivot level, which will act as crucial support for the index, is placed at 26,576.13, followed by 26,242.77. On the upside, key resistance levels are placed at 27,100.33, followed by 27,291.17.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.

Asian markets trade lower

Asian markets traded lower early on Monday as investors kept an eye on political developments in the US after a government shutdown began last week. Japan's Nikkei 225 hovered around the flat line. South Korea's Kospi declined 0.54 percent as index heavyweight Samsung Electronics fell 2.11 percent in early trade, CNBC reported.

SGX Nifty

Trends on SGX Nifty indicate a positive  opening for the broader index in India, a rise of 71.5 points or 0.66 percent. Nifty futures were trading around 10,758-level on the Singaporean Exchange.

US government shutdown begins as spending bill fails in Senate

The US government shut down at midnight on Friday after Democrats and Republicans, locked in a bitter dispute over immigration and border security, failed to agree on a last-minute deal to fund its operations.

In a late-night session, senators blocked a bill to extend government funding through February 16. The bill needed 60 votes in the 100-member Senate but only 50 supported it, Reuters reported.

Develop a US-style online platform to sell bad loans: Viral Acharya

The Reserve Bank has called for putting in place an online trading platform on the lines of the system in the US, to sell distressed assets to ensure more transparency and better price-discovery.

Deputy governor Viral Acharya has opined that such an online trading platform can help create a thriving market for selling bad loans, which is plaguing the domestic banking system, and asked all the stakeholders to come together to develop such a mechanism.

Budget 2018 may not be populist, indicates PM Modi

Prime Minister Narendra Modi indicated that the upcoming Budget will not be a populist one and it's a myth that the common ma n expects "freebies and sops" from the government.

In an interview with Times Now television broadcast , he also pledged that his government will stay on the course of the reforms agenda that has pulled out India from being among the 'fragile five' economies of the world to being a 'bright spot', Economic Times reported.

Budgetary support for Indian Railways to be cut by 27% in FY18

The Union government has cut budgetary support to the Indian Railways by Rs 150 billion for the financial year 2017-18. It is set to rely on borrowings, asset monetisation, and internal generation so that it does not fall short of the capital expenditure target of Rs 1.31 trillion for the fiscal year, Business Standard reported.

Apollo Micro Systems to debut on bourses today

Apollo Micro Systems will debut on the bourses on Monday. The issue price for its initial public offer was Rs 275 per share. Shares of the company will be listed on NSE and BSE. Aryaman Financial Services was the book running lead manager to the offer.

India to become fastest growing large economy in 2018: Report

India will overtake China to be the fastest growing large economy in 2018 and the country's equity market will become the fifth largest in the world, says a report.

According to a Sanctum Wealth Management report, when the rest of the world offers low growth and insufficient structural change, India, by contrast, is seen as a reforming economy with the prospect of strong long-term growth.

RIL Q3 net, petchem EBIT up 16%; Jio posts first ever profit at Rs 504 cr

Reliance Industries has reported consolidated profit growth of 16.2 percent QoQ (25.1 percent year-on-year) at Rs 9,423 crore for October-December quarter, driven by petrochemical and Jio businesses.

Consolidated revenue from operations during the quarter grew 7.8 percent quarter-on-quarter (21.75 percent YoY) to Rs 1,02,500 crore, aided by volume increase with start-up of petrochemicals projects and increase in prices in refining and petrochemical businesses.

India's richest 1% grabbed 73% of wealth generation in 2017: Survey

The richest 1 percent in India cornered 73 percent of the wealth generated in the country last year, a new survey showed on Sunday, presenting a worrying picture of rising income inequality.

Besides, 67 crore Indians comprising the population's poorest half saw their wealth rise by just 1 percent, as per the survey released by the international rights group Oxfam hours.

Arun Jaitley to skip WEF Davos meet to focus on Budget 2018

Finance minister Arun Jaitley is unlikely to travel to the World Economic Forum (WEF) annual meeting in Davos next week, preferring instead to put the finishing touches on the Union Budget due to be unveiled on February 1.

ONGC to pay Rs 36,915 cr for 51.11% stake in HPCL

Oil and Natural Gas Corporation (ONGC) will pay Rs 36,915 crore for a 51.11 percent stake in Hindustan Petroleum Corporation (HPCL), the former said in a filing to stock exchanges. ONGC will pay Rs 473.97 per share and will complete the acquisition of government's stake in HPCL by January end.

The finance ministry on Saturday said that ONGC will now have presence across the entire value chain and will become the country's first vertically-integrated oil major.

FPI flow to Indian market so far in January at Rs 8.7K cr

Overseas investors have put in a whopping Rs 8,700 crore in the Indian capital markets this month so far on expectation of recovery in corporate earnings and attractive yields.

Equity investment limit for EPFO may be raised to 25%

A greater proportion of provident fund savings could be headed for the stock market with shares rising to successive records in past weeks, said a government official. The government is considering a plan to raise the equity investment limit for the Employees' Provident Fund Organisation to 25 percent, Economic Times reported.

29 companies are scheduled to report results today:

As many as 29 companies are scheduled to report their results today which include names like Asian Paints, Axis Bank, Diwan Housing, Havells India, JustDial, Rallis India, Videocon Industries etc. among others.

MORE WILL UPDATE SOON!!

Wall Street ends higher despite government shutdown threat

The Dow Jones Industrial Average .rose 53.91 points, or 0.21 percent, to close at 26,071.72, the S&P 500 gained 12.27 points, or 0.44 percent, to 2,810.3 and the Nasdaq Composite added 40.33 points, or 0.55 percent, to 7,336.38.

  

Wall Street rose on Friday, led by gains in consumer stocks, even as a possible government shutdown loomed.

The S&P 500 and the Nasdaq hit record closing highs, while the Dow ended the day higher after trading in a narrow range.

Nike Inc, Philip Morris International Inc and Home Depot Inc rose between 1.5 percent and 4.8 percent on upbeat analyst expectations, helping to boost the S&P 500. Conversely, losses in International Business Machines Corp and American Express capped gains on the Dow.

The Dow Jones Industrial Average rose 53.91 points, or 0.21 percent, to close at 26,071.72, the S&P 500 gained 12.27 points, or 0.44 percent, to 2,810.3 and the Nasdaq Composite added 40.33 points, or 0.55 percent, to 7,336.38.

For the week, the Dow rose 1.04 percent, the S&P 500 added 0.86 percent and the Nasdaq gained 1.04 percent.

Nine of the 11 major S&P sectors were higher, led by a 1.1 percent gain in the consumer staples index and a 0.9 percent rise in consumer discretionary stocks.

A disappointing full-year profit forecast from IBM pushed its shares down 4.0 percent, the biggest single-day loss since July.

American Express slipped 1.8 percent after posting its first quarterly loss in 26 years and suspending share buybacks for the next six months.

“The market has a few jitters as the result of a potential shutdown,” said Kevin Miller, chief executive of E-Valuator Funds in Bloomington, Minnesota. “From a longer-term perspective, corporate earnings are still strong, and we’re about to engage in the benefits of tax reform.”

The US Senate was racing to avert a shutdown ahead of a midnight deadline on the spending measure amid lingering disagreements between Democrats and Republicans. Negotiations continued on Friday after Senate Democratic leader Chuck Schumer met with President Donald Trump at the White House to address the impasse.

Advancing issues outnumbered declining ones on the NYSE by a 1.98-to-1 ratio; on Nasdaq, a 2.51-to-1 ratio favoured advancers.

The S&P 500 posted 105 new 52-week highs and nine new lows; the Nasdaq Composite recorded 171 new highs and 30 new lows.

Volume on US exchanges was 6.82 billion shares, compared to the 6.32 billion average over the last 20 trading days.

MORE WILL UPDATE SOON!!