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Sensex Ends Volatile Day Flat; Auto Stocks Top Gainers
Tue, 22 May Closing | Parth Parekh, TM Team

After opening the day in green, share markets in India witnessed volatile trading activity throughout the day and ended the day on a positive note. Sectoral indices traded on a mixed note, with stocks in the metal sector and stocks in the auto sector, leading the gains.

At the closing bell, the BSE Sensex stood higher by 53 points (up 0.1%) and the NSE Nifty closed up by 20 points (up 0.2%). The BSE Mid Cap index ended the day up 0.6%, while the BSE Small Cap index ended the day up by 0.7%.

The rupee was trading at Rs 68.05 against the US$ in the afternoon session. Oil prices were trading at US$ 79.65 at the time of writing.

Asian stock markets finished mixed. As of the most recent closing prices, the Hang Seng was up by 0.6% and the Shanghai Composite was up by 0.1%. The Nikkei 225 was down by 0.2%. Meanwhile, European markets, were trading on a positive note. The FTSE 100 was up by 0.2%, The DAX, was up by 0.2% while the CAC 40 was up by 0.1%

In news from the aviation sector. In a move that could shake-up the aviation sector, the civil aviation ministry has proposed an increase in compensation or cancellation fees for airlines.

The government is proposing to make these changes through the Draft Passenger Charter defining rights for air passengers is being opened for public consultation.

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According to the new rules, if the flight delay is communicated more than 24 hours prior to original scheduled and the delay is for more than four hours, airlines have to offer option of full refund of ticket to the passenger.

If the delay involves the flight to fly on the next day, that is airline to offer additional free-of-charge hotel accommodation.

For the first time the government has proposed to that airlines should provide compensation if the delay causes a passenger to miss a connecting flight. The penalty can be as steep as Rs 20,000.

However, airlines have been vehemently opposing such a move as they contend it would have a negative effect on its earnings. They argue that any such change in compensation saying that such rules coupled with a high fuel price environment will be result in huge commercial loss.

Indian Aviation Spreading its Wings

Air travel has recorded double-digit growth for 40 consecutive months, thanks to low fares, the addition of new flights/destinations, and overall growth in the economy.

What's foreseeable for India's aviation traffic in 2018 is some pressure on the back of the consistent rise in crude oil prices. Earlier this month, Brent crude oil briefly breached US$70 per barrel and touched its highest level since December 2014. Crude prices have been driven up by production curbs in OPEC nations and Russia, as well as by robust demand on the back of healthy global economic growth.

Oil prices are closely monitored by the Indian air carriers, as aviation turbine fuel is their single largest input cost. A sharp rise in the cost of fuel puts pressure on margins, and consequently an increase in air fares.

Although air travel is becoming the new normal, investors need to understand the industry dynamics before buying up aviation stocks.

Moving on to news from stocks in the banking sector. State Bank of India (SBI) share price was among the top gainers on the bourses today, after the state-run bank declared results for the quarter ended 31 March 2018.

The bank's stock surged over 5% in today's trade even as the bank posted a record net loss of Rs 77 billion for the March quarter.

This was the highest quarterly loss figure reported by any bank after scam-ridden Punjab National Bank's Rs 134 billion loss reported for the March quarter last week.

The top contributing factor for the high loss figure was provisions, which surged to Rs 280 billion during the quarter, more than double the figure reported in the corresponding quarter.

The rise in provisions was mainly because the bank had to provide more for bad loans, the losses it incurred on trading, and for mark-to-market losses due to a rise in bond yields.

Other factors that weighed on the lender's bottom line were a revision in wages and an enhancement of the gratuity ceiling. SBI's gross non-performing assets, as a share of its loans, grew 56 basis points sequentially to 10.9% at the end of March. This was over 400 basis points higher than at the end of March last year.

Net NPAs as a percentage of the bank's loan book came in at 5.7%, 12 basis points higher than at the end of the December quarter, and just over 200 basis points higher than at the end of March last year.

And here's a note from Daily Profit Hunter

The PSU banks are showing immense strength for the past two days despite the broader market indices trading on a weak note.

State Bank of India (SBI), the largest PSU bank in India, announced its Q4FY18 results. And today and the stock is up 4.5% with strong volumes.

The stock has been trading in a broad range of 150 - 350 since May 2009. The level of 150 acted as a very good support while 350 acted as a good resistance. In this range, the 230 - 240 zone has also acted as a good support as well as resistance on multiple occasions.

In October 2017, the stock hit a high of 351 and fell to find support around 230 - 240 zone in March 2018. In April, it hit a low of 232.50 and rebounded strongly. Today as well, the stock reversed after touching a low of 241.

It is forming a double bottom pattern on the daily chart. The RSI indicator also formed a bullish divergence with the price.

So does this indicate that the stock will re-test its October 2017 high? Let's keep a close watch on it.

SBI Bounced Up From Strong Support Zone
SBI Bounced Up From Strong Support Zone 

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Stock Market Updates

SUVEN LIFE surged by 5%; BSE HEALTHCARE Index Up 1.4% (Today's Market)

May 22, 2018 03:23 PM

SUVEN LIFE share price has surged by 5% and its Current Market Price is Rs 190. The BSE HEALTHCARE is up by 1.35%. The top gainers in the BSE HEALTHCARE Index are SUVEN LIFE (up 5.29%) and DR. REDDYS LAB (up 7.00%). The top losers are SANOFI INDIA (down 0.02%) and TORRENT PHARMA (down 0.04%).

DR. REDDYS LAB surged by 7%; BSE HEALTHCARE Index Up 0.7% (Today's Market)

May 22, 2018 03:12 PM

DR. REDDYS LAB share price has surged by 7% and its Current Market Price is Rs 2,030. The BSE HEALTHCARE is up by 0.68%. The top gainers in the BSE HEALTHCARE Index is DR. REDDYS LAB (up 6.82%). The top losers are AJANTA PHARMA (down 0.01%) and LUPIN LTD (down 0.03%).

SBI surged by 5%; BSE BANKEX Index Up 0.6% (Today's Market)

May 22, 2018 02:16 PM

SBI share price has surged by 5% and its Current Market Price is Rs 260. The BSE BANKEX is up by 0.65%. The top gainers in the BSE BANKEX Index are SBI (up 5.06%) and PNB (up 5.88%). The top losers are AXIS BANK (down 0.22%) and KOTAK MAH. BANK (down 0.22%).

Indian Indices Trade Marginally Higher; Auto and Realty Stocks Witness Buying (Today's Market)

May 22, 2018 12:30 pm

The BSE Sensex is trading up by 96 points, while the NSE Nifty is trading up by 25 points.

ASHOK LEYLAND surged by 5%; BSE AUTO Index Up 1.0% (Today's Market)

May 22, 2018 11:13 AM

ASHOK LEYLAND share price has surged by 5% and its Current Market Price is Rs 141. The BSE AUTO is up by 0.99%. The top gainers in the BSE AUTO Index is ASHOK LEYLAND (up 5.17%). The top losers is M&M (down 0.18%).

NCC LTD surged by 5%; BSE REALTY Index Down 0.2% (Today's Market)

May 22, 2018 10:28 AM

NCC LTD share price has surged by 5% and its Current Market Price is Rs 103. The BSE REALTY is down by 0.19%. The top gainers in the BSE REALTY Index is NCC LTD (up 5.13%). The top losers are PHOENIX MILL (down 0.06%) and OBEROI REALTY (down 1.35%).

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