Daily Market Wrap Up - 31st August 2016

Daily Market Wrap Up- 30th August 2016

Daily Market Wrap Up

OASIS FUNDAMENTALS - WEEKLY UPDATE

PARTING GIFT FROM DR. RAJAN

Bond markets got a booster shoot from RBI with slew of measures announced on 25^th August 2016. Accepting Khan Committee Report recommendations, RBI has announced various measures ranging from enhancing aggregate limit of partial credit enhancement (PCE) provided by banks, permit brokers in corporate bond repos, authorize platform for repo in corporate bonds and encouraging credit supply for large borrowers through market mechanism. The central bank will also seek amendments in the RBI Act to accept corporate bonds under Liquidity adjustment Facility (LAF). In addition to this, banks would be permitted to issue Masala Bonds i.e Rupee bonds overseas for their capital requirements and for financing infrastructure and affordable housing. The RBI has also announced that Foreign Portfolio Investors (FPIs) would be given direct access to NDS-OM and trade directly in corporate bonds.

For forex markets, Reserve Bank has now permitted entities both resident/non-resident to hedge transactions upto a limit of USD 30 million at any given time. The entity would be free to access any market, OTC or any other exchange and use any of the permissible products at its discretion In addition to this limit, AD banks based on their assessment of the customer, may allow an open position limit of upto USD 5 million. 

JANET &  JACKSON HOLE

US Fed has signaled that the US economy is on a strong footing with respect to labor market though inflation is still under 2%. Incase August jobs report next Friday is positive, likelihood of September hike cannot be ruled out. But December rate hike is higher possibility with US elections in November. 

INFOSYS SYNDROME

Infosys touched its 52 week low during the week and closed at Rs. 1020.75 on Friday. The Bengaluru based company clarified that it would give more accurate information on its revenue guidance after the second quarter FY17. The company is reeling under Brexit effects among its clients. The Royal Bank of Scotland has cancelled its contract with the company post Brexit.      

FRIDAY - Daily Market Wrap Up

Highlights of the Day

•  Abbott India reported strong performance with 10% rise in Net Profit & 16% jump in income from operations for the quarter ended 30^th June 2016. The stock was up 0.62% and closed at Rs. 4731.45.
•   J.B. Chemicals & Pharmaceuticals Ltd was one of the star performers rising 8% and closing at Rs. 366.60 gaining Rs.24.65 by the end of the day. The company reported 26% rise in its standalone Net Profit and 9% increase in income from operations in June quarter.
•  Finolex cables reported 37% rise in Net Profit for the period ended June 30^th 2016. The stock closed at Rs. 428.65 by end of the day. 
• Finolex Industries also reported strong quarterly performance with 36% rise in PAT and 6% jump in income from operations.
•  Nifty declined 0.23% at 8572.55 for the day with 21 advances and 30 declines. S&P BSE 30 closed down by 0.19% at 27782.25 declining by 53.66 points for the da

Major Developments  

Biocon Ltd has announced regulatory submission for proposed biosimilar trastuzumab acccepted for review by European Medicines Agency".

Market Mood   

              

Stock markets ended flat with midcaps outperforming on both S&P BSE & NSE. S&P Midcap rose 0.21% gaining 22.21 points whereas Nifty Midcap 50 jumped 0.34% by the end of the day. Nifty Auto was another out-performer rising 0.71% for the day. For the week as a whole S&P BSE Sensex and Nifty closed down by 0.9% and 1% respectively.   

                                  

Wednesday – Daily Market Wrap Up

Highlights of the Day

• Engineers India reported stellar performance with 50% rise in Net Profit for the quarter ended 30^th June 2016. The stock was up 8.16% and closed at Rs. 251.
•  Aurobindo Pharma Ltd also enthralled stock markets with 24% rise in its consolidated Net Profit and 13% rise in income from operations in Q1 FY17. The scrip closed at Rs. 787.55 or 7% up by the end of the day.
•   Vardhaman Textiles reported 4% rise in Net Profit for the period ended June 30^th 2016. The stock gained Rs. 44.35 to close at Rs. 1024.45 or 4.53% up by end of the day.
• Nifty closed 0.21% up at 8650.30 for the day with 24 advances and 27 declines. S&P BSE 30 closed at 28059.94 up 0.25% or 69.73 points for the day.

Major Developments                          

•     Central government has cleared the revised double taxation avoidance agreement (DTAA) with Cyprus. The agreement will allow India to tax capital gains from April 1 2017.

• Citibank is in initial stages of launching the largest digital contract of USD 1 billion. The contract is for end-to-end transformation of the company’s global operations.

Market Mood   

Stock markets were range-bound with small and midcaps stealing the show. S&P BSE Mid & Small cap were up by 0.61% and 0.65% respectively.

HDFC BANK Q1 FY 17 REPORT

Banking Industry bell-weather, HDFC Bank reported strong first quarter results with Net Profit, Net Interest Income, deposits and advances rising in double digits. The second largest private sector bank with CAR of 15.50% (Tier I-13.30%) commands credibility due to growing profitability and stable asset quality in today’s volatile scenario. The bank is poised for higher growth as one of the major players in Indian banking industry. Thus we recommend BUY for the stock for medium and long term investment. Read the full report below...