Indian Indices End Marginally Higher; Realty Stocks Witness Buying
Closing

After opening their day on a flat note, Indian share markets witnessed choppy trades and ended their session marginally higher. Gains were largely seen in the realty sector and power sector, while losses were largely seen in the IT sector and auto sector.

At the closing bell, the BSE Sensex stood higher by 90 points (up 0.3%) and the NSE Nifty closed higher by 20 points (up 0.2%). Both, the BSE Mid Cap index and the BSE Small Cap index, ended the day up by 0.3%.

Asian stock markets finished on a mixed note as of the most recent closing prices. The Hang Seng was down 0.8% and the Nikkei was trading up by 0.1%. The Shanghai Composite stood down by 1.4%.

The rupee was trading at 65.7 to the US$ at the time of writing.

In the news from global financial markets, China's economy grew 6.8% in the first quarter of 2018. This was against a consensus estimate of 6.7% YoY growth for the quarter. The growth also marked the third-straight quarter of 6.8% growth for the world's second-largest economy.

In the news from the chemicals sector, as per an article in the Economic Times, India has initiated probe into alleged dumping of a chemical used in paint and leather industry from Brazil, Indonesia and Thailand following a complaint from a domestic player.

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How We Were Able To Predict The Rise Of The IT Sector...

The NSE IT Index has moved up more than 21% between 16th August 2017 and 31st January 2018.

Would you believe me if we told you one of our senior research analysts, Apurva Sheth, had predicted this rise in advance?

Yes!

Not only that, Apurva also zeroed in on one IT stock he believed would benefit greatly from the rise. And that's exactly what happened.

So what strategy did Apurva use for it? And how could YOU potentially benefit from it now too?

Click here for full details…
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The commerce ministry's investigation arm Directorate General of Antidumping and Allied Duties (DGAD) has stated that it has found sufficient evidence of dumping of 'non-plasticised industrial grade nitrocellulose excluding nitrocellulose damped in Ethanol and waterwet' from these three countries.

It remains to be seen how the above investigation pans out. Meanwhile, we will keep you updated on all the developments from this space.

In the news from sectoral indices, losses were seen in the IT Index today with Wipro share price, Tata Consultancy Services (TCS) share price, and Infosys share price witnessing the maximum selling pressure.

At the time of closing, the IT Index stood down by X%.

Speaking of the IT sector, here's an interesting study...

While the BSE Sensex delivered a return of about 11% during the financial year 2017-18, the BSE IT index gained over 19% during the same period.

Now, that's a significant outperformance. If you were holding some solid IT stocks last year, you have most likely fared better than the Sensex.

But last year, the markets were not as optimistic on the sector as they are now.

Look at the chart...

How It Paid Off to Bet on the Uncertainties in the IT Sector

During the first half of 2017-18, the IT sector was among the underperformers, and it was lagging way behind the Sensex.

During the first half of 2017-18, the IT sector was among the underperformers, and it was lagging way behind the Sensex. In fact, until October 2017, the index was still hovering near levels seen in April 2017.

Most of this was seen on the back of uncertainty and negativity surrounding the IT sector last year. From the H1-B visa problem, the global slowdown concerns, to the strengthening of the Indian rupee, high attrition rates, etc.

But once the mood of the market changed, the IT index not only recovered, but went on to outperform the Sensex.

And here's a note from Profit Hunter

Hindustan Unilever (HUL) is among the top gainers in the Nifty 50 Index - up 2% and trading at its life-time high.

The last time we reviewed the stock, it had broken out of its broad range of 765 - 975 on the upside with strong volumes. After the break out the stock rallied nearly 44% to touch a life-time high of 1,410 in January 2018. It corrected for a while to touch a low of 1,280 where it found support from horizontal support line (green line).

Recently, it broke above the falling trendline (blue line) and resumed its uptrend. Today, the stock has touched a fresh life-time high of 1,450.

But the RSI indicator is now trading in its extreme overbought territory.

So will the stock continue with its strong upside momentum or will the overbought condition bring in some correction. Let's wait and watch...

HUL at its Life-time High
HUL at its Life-time High 

Sensex Trades Flat; IT Stocks Top Losers
12:30 pm

After opening the day flat, share markets in India have continued to trade rangebound, and are trading marginally below the dotted line. Sectoral indices are trading on a mixed note with stocks in the capital goods sector and stocks in the IT sector leading the losses.

The BSE Sensex is trading down by 11 points (down 0.1%), and the NSE Nifty is trading down by 12 points (down 0.1%). Meanwhile, the BSE Mid Cap index is trading flat, while the BSE Small Cap index is trading up by 0.1%. The rupee is trading at 65.62 to the US$.

In news about the economy. The World Bank forecast a growth rate of 7.3% for India this year and 7.5% for 2019 and 2020, and noted that the country's economy has recovered from the effects of demonetisation and the Goods and Services Tax.

The bank said that factors such as sustained recovery in private investment and private consumption will spur growth going forward.

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How We Were Able To Predict The Rise Of The IT Sector...

The NSE IT Index has moved up more than 21% between 16th August 2017 and 31st January 2018.

Would you believe me if we told you one of our senior research analysts, Apurva Sheth, had predicted this rise in advance?

Yes!

Not only that, Apurva also zeroed in on one IT stock he believed would benefit greatly from the rise. And that's exactly what happened.

So what strategy did Apurva use for it? And how could YOU potentially benefit from it now too?

Click here for full details…
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In its report the World Bank said, India should strive to accelerate investments and exports to take advantage of the recovery in global growth.

Teething issues related to implementation of GST, which hampered operations of small and medium sized enterprises and exporters, also contributed to growth moderation.

GDP Growth Getting Back on Track

According to the World Bank, the most substantial medium-term risks are associated with private investment recovery, which continues to face several domestic impediments such as corporate debt overhang, regulatory and policy challenges, along with the risk of an imminent increase in US interest rates.If the internal bottlenecks are not alleviated, subdued private investment would put downside pressures on India's potential growth

India's GDP grew by 7.2% in Q3 FY18. Manufacturing grew by 8.1% for the quarter compared to 7.9% in the same quarter last year. Cement, electricity, coal, and steel, the bedrock of the economy, all witnessed robust growth.

India also surpassed China as the world's fastest growing economy. Rest assured, we'll keep a close eye on this trend.

Moving on to news from stocks in the consumer durables sector. Bajaj Electricals share price hit an all-time high today after the company bagged large orders.

Bajaj Electricals share price surged over 7% in morning trade after the company bagged orders worth Rs 35.7 billion from Madhyanchal Vidyut Vitaran Nigam Ltd (MVVNL).

The orders are for over ten rural and urban electrification projects in Uttar Pradesh.

The electrification and related work will be carried out on turnkey basis under the Saubhagya Yojna of Government of India.

Bajaj electricals added that the projects would be completed within 15 months from the date of the issue of letter of intent.

At the time of writing, Bajaj Electricals share price was trading up by 7%.


Sensex Opens Flat; IMD Predicts Normal Monsoon for 2018
09:30 am

Asian share markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.1% while the Hang Seng is down 0.2%. The Shanghai Composite is trading down by 0.4%.

Back home, India share markets opened the day on a flat note. The BSE Sensex is trading higher by 15 points while the NSE Nifty is trading up by 3 points. The BSE Mid Cap index and BSE Small Cap index both opened the day up by 0.4 & 0.2% respectively.

Sectoral indices have opened the day on a mixed note with metal stocks and stocks in the power sector witnessing buying interest. While, IT stocks & energy stocks have opened the day in red. The rupee is trading at 65.46 to the US$.

In news from stocks in the pharma sector. Cipla share price is in focus today after the United States Food & Drug Administration (USFDA) completed its inspection of the company's Indore facility with no integrity or repeat observations for the unit.

The US regulator which began inspections on 2 April 2018, cleared the facility with nothing adverse to report.

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How We Were Able To Predict The Rise Of The IT Sector...

The NSE IT Index has moved up more than 21% between 16th August 2017 and 31st January 2018.

Would you believe me if we told you one of our senior research analysts, Apurva Sheth, had predicted this rise in advance?

Yes!

Not only that, Apurva also zeroed in on one IT stock he believed would benefit greatly from the rise. And that's exactly what happened.

So what strategy did Apurva use for it? And how could YOU potentially benefit from it now too?

Click here for full details…
------------------------------

Note that Cipla's Indore facility had earlier received nine observations from the USFDA in 2015 and which were cleared in 2016.

Further, in January 2018, the USFDA had conducted a product specific pre-approval inspection at Goa plant and issued certain observations which were procedural in nature. Post that inspection, it had received two product approvals from the plant.

Cipla share price opened the day down by 0.3%.

BSE Healthcare Index Down 26% in Three Years

Speaking of pharma stocks, Divis Laboratories share price has hit a 52-week high. Things seem to be looking up for the pharma sector.

Is this the right time to buy pharma stocks?

There was a time when almost every stock in the pharma sector was considered to be a safe stock. You could just pick the top 5-6 companies from this sector and expect to make decent returns over time.

In fact, it was termed as defensive sector. However, in last two years things have changed a lot. There is enormous uncertainty in the industry.

Uncertainty regarding price erosion in the United States as well as hostile US FDA visits, have changed a once defensive sector into a risky sector.

However, we believe this could be point of consolidation in the industry i.e. with stricter norms, lower margins, and pricing pressure, the industry may see many exits and acquisitions. This could lead to relatively fewer but higher quality players.

We believe, if you can pick a niche company with good financials and strong management, this is a good time to consider pharma stocks.

Moving on to news that could bring cheer to the economy, the Indian Meteorological Department (IMD) predicted 'normal' monsoon rains this year.

In its first stage long range forecast the IMD said that rainfall will be 97% of the 50-year average with a 54% probability that rains will be normal to above normal.

Probability that rainfall will be deficient (less than 90% of 50 year average) is 14%, it added.

A normal, or average, monsoon means rainfall between 96% and 104% of a 50-year average of 89 cm (35 inches) in total during the four-month monsoon season from June, according to the IMD's classification.

The onset of the monsoon in June is the trigger for planting of rain-fed Kharif crops. India receives 70% of its annual rainfall in the four-month period, which in turn irrigates over half of its farm lands lacking assured irrigation.

A normal monsoon is crucial to push economic growth, which slowed last year under the lingering impact of demonetisation and disruptions due to implementation of the goods and services tax (GST), both of which impacted private consumption demand as well as exports.


GST Collections, RBI's NPA Norms, and Top Cues in Focus Today
Pre-Open

Share markets in India closed marginally higher yesterday. Gains were largely seen in the metal sector and IT sector, while oil & gas stocks and banking stocks ended the day lower.

At the closing bell yesterday, the BSE Sensex stood higher by 112 points (up 0.4%) and the NSE Nifty closed up by 47 points (up 0.4%). The BSE Mid Cap index ended the day down 0.2%, while the BSE Small Cap index ended the day up by 0.2%.

Top Stocks in Focus Today

Gruh Finance share price is likely to be in focus today after the company informed bourses that its board has recommended issue of bonus shares in the ratio of 1:1 to its shareholders, subject to the approval of shareholders.

The board also recommended a dividend of Rs 3.3 per equity share of face value of Rs 2 each for the financial year ended March 31, 2018.

Infosys share price will continue to be in focusafter the management guided for 100 bps reduction in EBIT (earnings before interest & tax) margin guidance for FY19.

--- Advertisement ---
How We Were Able To Predict The Rise Of The IT Sector...

The NSE IT Index has moved up more than 21% between 16th August 2017 and 31st January 2018.

Would you believe me if we told you one of our senior research analysts, Apurva Sheth, had predicted this rise in advance?

Yes!

Not only that, Apurva also zeroed in on one IT stock he believed would benefit greatly from the rise. And that's exactly what happened.

So what strategy did Apurva use for it? And how could YOU potentially benefit from it now too?

Click here for full details…
------------------------------

RBI Plans to Relax NPA Norms

Reserve Bank of India (RBI) may relax some of the stringent norms for treatment of bad loans that it announced in February without diluting their spirit.

The finance ministry has made a case for providing some relief, especially for small and medium enterprises, as the tighter rules could force defaulters into rapid bankruptcy, which could further dent jobs generation.

As per the news, the one-day non-performing asset (NPA) classification norm may be extended to 30 days and the requirement that a resolution plan has to be approved by all lenders could be lowered to 75%.

How this pans out remains to be seen. Meanwhile, we will keep you updated on all the developments from this space.

GST Inflows Seen to Improve

According to a leading financial daily, Goods and Services Tax (GST) collections are expected to bounce back to Rs 930-950 billion, and perhaps more, when returns for March 2018 are filed by April 20.

This is against the average of about Rs 870 billion in the past five months.

Total GST collections - the sum of Central, State and integrated GST - have been on a rollercoaster since the new tax regime came into force in July 2017. After three months of robust collections - in excess of Rs 900 billion each month - they dipped in the following two months.

However the situation seems seems to be improving as GST collections rose to Rs 893 billion in March as opposed to Rs 840 billion in December last year.

A steady stream of GST collections could boost the government's chances of meeting its fiscal deficit target.