Indian Market Outlook: 

In the recent week major Indian equity indices has again shown recovery levels which further settled with huge volatility. BSE Sensex close at 31596.06, up by 71.38 points or 0.23%, while NSE nifty close at 9857.05, up 19.65 points or 0.20% for the week. Among the nifty constituents INFY, AUROPHARMA, LUPIN, CIPLA, SUNPHARMA, DEREDDY was the top gainers whereas HCLTEC, ACC, ADANIPORT, BAJAJ- AUTO, IBULHSGFIN were the major draggers on the index. The broader market indices also consolidated their recent upward as the BSE Midcap index closed by 43.64 points or 0.29% up where as BSE Small Cap indices closed by 28.65 points or 0.18% up from last week.
In this week, FII’s were seen to booking profit in the market by selling of net asset at Rs 4666.53 cr, whereas DII was seen again to making postion in the market by buying assets of Rs 2883.99 cr. On the agriculture front, total cumulative sown area for the current Kharif season 2017 was at 97.6 million hectares (MH), up 0.3% YoY as of August 18, 2017. On commodities front Crude oil prices also closed at lower than the previous week at US$ 52.6 /barrel, Gold Price ended higher at $1294/ounce from previous week closing level of $ 1293/Ounce.

We are expecting the index to remain in consolidation mode in the range of some ware 9800-10100 in the coming week while focus will remain on sector/stock specific action. Based on this tendency, we expect the current consolidation to conclude over the coming week post which the index should resume its upward momentum. Other global important data will also support the indian market performance. Some of the key economic events scheduled for the next week are India’s GDP Quarterly Data (YoY) Q2, India’s Nikkei Markit Manufacturing PMI (Aug), US Non Farm Payrolls Data, US GDP (QoQ) (Q2) which should to be focus closely.

Latest Spot Price

Precious Metal’s Current Price % change 3 Month 6 Month 1 YEAR-
GOLD 1291.35 0.56 1.9 2.7 -2.3
SILVER 17.13 0.8 -1.1 -6.9 -7.9
PLATINIUM 974.65 -0.3 1.5 -5.1 -9.2
 USD/INR 64.03 -0.17 -0.64 -4.18 -4.5
CRUDE OIL 52.41 -0.6 0.5 -6.4 5

Commodities Brent crude (NdtvProfit)

Global Weekly Events

Date Region Event Description Forecast  reading Previous reading
Aug,28 ,2017 USD WHOLESALE INVENTORIES (MOM) 0.70%
Aug,29 ,2017 USD CB CONSUMER CONFIDENCE (AUG) 121 121.1
Aug,29 ,2017 JPY HOUSHOLD SPENDINGS (YOY) (JUL) 0.70% 2.30%
Aug,30 ,2017 USD ADP NONFARM EMPLOYMENT CHANGE (AUG) 183K 178K
Aug,30 ,2017 USD GDP (QOQ) (Q2) P 2.70% 2.60%
Aug,31,2017 INR INFRASTRUCTURE OUTPUT (YOY) (JUL) 0.40%
Aug,31 ,2017 INR GDP QUARTERLY (YOY) (Q1) 6.60% 6.10%
Sep ,01,2017 INR NIKKEI MARKIT MANUFACTURING PMI (AUG) 49.3 47.9

Source: Investing.com

Domestic Economy Indicators

Heading Indicators Current Rate % Pre Rate %
 RBI Policy Rate   Policy Repo Rate 6.00% 6.25%
  Reserve Policy Rate 5.75% 6.75%
  Bank Rate 6.25% 6.50%
 Reserve Ratio   CRR 4% 4%
  SLR 20.00% 20.50%
 Inflation Rate  Wholesale Price Index 1.88% 0.90%
 Consumer Price Index 2.36% 1.54%
 Trade Data  Export ($ Million) 22543.8 23562.62
 Import($ Million) 33993.6 36522.5
 Industry  IIP -0.10% 1.70%

Source: Trading Economics

Domestic Indices Closing (24th Aug) Change %Change
BSE Sensex 31596.06 71.38 0.23
Nifty 9857.05 19.65 0.2
Mid Cap 15252.1 43.64 0.29
Small Cap 15646.6 28.65 0.18
Bank Nifty 24274.2 199.75 0.82

 

Global Indices Closing (24th Aug) Change % Change 
Dow Jones 21837.5 72.5 0.33
Nasdaq 6265.64 -3 -0.05
FTSE 7401.46 77.48 1.05
Nikkei 19452.61 -17.8 -0.09
Hang Seng 27848.16 800.59 2.87
Shanghai Com 3331.66 62.42 1.87

 

Net Inflow(Cr) FII DII
21-Aug-17 -1983.39 474.72
22-Aug-17 -828.69 435.05
23-Aug-17 -1157.52 929.84
24-Aug-17 -696.93 1044.38
25-Aug-17 Holiday Holiday
Total -4666.53 2883.99

 

Top Losers Closing Price Prev Close Chg (%)
HCLTEC 866.2 880 -1.57
ACC 1777.05 1801.9 -1.38
ADANIPORT 379.8 385 1.35
BAJAJ-AUTO 2726 2754.65 -1.04
IBULHSGFIN 1209 1221.75 -1.04

 

Top Gainers Closing Price Prev Close Chg (%)
AUROPHARMA 732.2 698.65 4.8
LUPIN 994 955.85 3.99
CIPLA 575.55 559.15 2.93
SUNPHARMA 481.9 469.2 2.71
DRREDDY 2080 2030.95 2.42

Economic News:

  • The foreign direct investments (FDI) into India have nearly doubled over the past decade to USD 42 billion, which was 1.9 per cent of GDP in 2016-17.
  • Customs department to do away with supervised sealing of containers from October.From October; consignments would not be required to be sealed in the presence of inspectors. Instead they will sport an RFID chip with details of the consignment that can be accessed by a reader.
  • Indian micro finance loans grew 26% in Q1. As per the Micro finance Institutions Network (MFIN),The size of the micro finance industry stood at Rs 106,823 Cr in Q1 FY18. NBFC-MFIs’ share in the micro credit business stands at 31% with loan portfolio of Rs 32,820 Cr.
  • According to industry Experts country’s agricultural sector has potential to double farmer income and grow exports to $100 billion by 2022 from the present $36 billion.
  • Chairman of Rubber Board Ajith Kumar has met to Chief Minister Sarbananda Sonowal andinformed him that 58,000 hectares of land in 28 districts are under rubber cultivation and the Board has identified more areas for expanding the rubber farming in the state.He also said state government is willing to invite tyre manufacturing companies to set up base in the state once production of rubber is increased.
  • Road transport and highways ministry is seeking higher financial threshold to clear projects to ensure faster rollout of highway projects. The Nitin Gadkari wants to approve projects worth Rs 2,000 crore on its own, without the condition of going to Cabinet for final clearance.

 

Industry News:

  • Cellular Operators Association of India that represents top telecom firms. Telecom industry revenue in the June quarter fell 28% compared to the previous corresponding period.Airtel’s AGR market share in the June quarter rose 1.75 percentage points to 34.9%, while Vodafone India and Idea’s climbed 1.80 and 1.65 points to 25% and 21.8%, respectively. But quarter-on-quarter, Bharti’s AGR market share remained flat. Vodafone and Idea saw modest 0.6 bps and 0.2 percentage point gains.
  • Newly appointed Infosys Ltd chairman Nandan Nilekani said on Friday he will stay at the firm “as long as it takes” to get it back on track, as the company’s board moved to find a new chief executive officer (CEO) and mend relations with founder N.R. Narayana Murthy.
  • Whisky accounts for 61.2% of India’s total spirits market by volume in 2016; sales grow at a yearly pace of 3.8% over 2011-16.

 

Company News: 

  • LIC is the second-largest stakeholder in the Infosys. It had acquired an additional 2% stake in Infosys over three years ending February 2017, taking its total shareholding in the firm to 7.03%.
  • Bharti Infratel is expected to be a big beneficiary of likely incremental tenancy additions by Reliance Jio Infocomm over the next nine months, which, in turn, could offset the impact of possible tenancy losses triggered by the merger of Idea CellularBSE 0.95 % and Vodafone India.Incremental business given by Jio to Bharti Infratel “is likely to offset any (negative) impact of a potential 40,000-odd tenancy cancellations” on the latter triggered by the Idea-Vodafone India merger.Bharti Infratel to gain 50% of the incremental market share if Jio expands its countrywide base of 4G cell sites from the present 1.2 lakh to 1.5 lakh in the next nine months, and eventually achieves its 2 lakh cell-sites target quickly. At present, roughly 85% of Bharti Infratel’s revenue comes from the big three telcos – Bharti Airtel, Vodafone India and Idea.
  • Essar Oil to announce closure of $13 billion sale deal with Rosneft. Its help to minimise the 50% of debts portion in half shot.
  • Sethi has a diploma in hotel management from the Institute of Hotel Management Delhi. In December 2015, ITC appointed Dipak Haksar as the CEO of ITC Hotels.
  • DCM Shriram Industries Q1 net profit at Rs32.58 Cr. Total income increased to Rs497.63 Cr in the first quarter from Rs408.25 Cr in the year-ago period.
  • HCL Infosystems shares rise 10% on plans to distribute Apple products in India.
  • The proposed Matrimony.com initial public offering (IPO) is expected to be worth around Rs500 Cr.Currently company have two business segments—matchmaking services and marriage services.

 

Global News:

  • China to invest $4 billion in Pakistan to develop petrochemical complex. More over China has also plan to establish and operate jointly a $20 billion investment fund, sharing costs and profits on a 50:50 basis, with Saudi Arabia.
  • The next joint committee meeting of OPEC and non-OPEC producers will be held in Vienna on Sept. 22. All options, including extending supply cuts beyond Q1 of 2018, are “left open to ensure that all efforts are made to rebalance the market,” according to an OPEC statement.OPEC also confirmed that its deal achieved a conformity level of 94% as of July.
  • Hours after Whole Foods (WFM -0.1%) shareholders approved of its buyout by Amazon.com (AMZN -0.9%), the Federal Trade Commission says it will allow the $13.7B deal.
  • Revisions to their free trade agreement? South Korean and U.S. officials have kicked off talks on their five-year-old deal, which President Trump has called a “jobs killer.”
  • Walt Disney (DIS +0.6%) is likely to price an upcoming branded streaming service around $5/month, with an eye to building longer-term value over licensing profits, one analyst says.Revenues from a Disney-branded SVOD could be $34M-$38M in year one and more than $230M by year three, at an ARPU of $5/month.
  • Rosneft closes Essar Oil deal: Rosneft will get a 49.13% stake in Essar, while the Trafigura-UCP consortium via Kesani Enterprises will get another 49.13% holding.The remaining 1.74% stake will be held by retail shareholders

                                                (Data Source for news: ET Times, Live Mint, Reuter & EWAL Research)

 

 Forthcoming Corporate Actions (28th to 01st Sep) 

Company Purpose Ex-Date Company Purpose Ex-Date
HINDALUMI Final Div – Rs, 1.60 28-Aug-17 PIIND Final Div – Rs, 2.50 30-Aug-17
PINCON Div – Rs, 0.750 28-Aug-17 GAIL Final Div – Rs, 2.70 31-Aug-17
RAJPUTANA Bonus issue 9:5 28-Aug-17 GSFC Div – Rs, 2.20 31-Aug-17
BANASFN Consolidation of Shares 29-Aug-17 GUJALKALI Div – Rs, 5.0 31-Aug-17
CUPID Final Div – Rs, 2.0 29-Aug-17 INFIBEAM Stk Split Rs.10/- to Rs.1/- 31-Aug-17
JKLAKSHMI Div – Rs, 0.750 30-Aug-17 POLYPLEX Final Div – Rs, 4.0 31-Aug-17
KKCL Final Div – Rs, 1.50 30-Aug-17 SHERVANI Buy Back of Shares 31-Aug-17
MSL Bonus issue 1:1 30-Aug-17 VINATIORGA Buy Back of Shares 31-Aug-17
ORBTEXP Final Div – Rs, 0.60 30-Aug-17 ALBERTDA Div – Rs, 5.50 1-Sep-17
HINDALUMI Final Div – Rs, 1.60 28-Aug-17 PIIND Final Div – Rs, 2.50 30-Aug-17

Source: NSE, Elite wealth Research

Corporates Results (28th to 01st Sep)

Date Company
28-Aug-17 8KMILES,IL&FSENGG,AMDIND,ANIKINDS,GAL,PRAKASHSTL,SURIYALAXMI
29-Aug-17 SIL,NEXTMEDIA,MINDAIND,KEI,HMT,GUJAPOLLO,DTIL,GEECEE,KSK,CUBEXTUB
30-Aug-17 SKIL,S&SPOWER,PRECOT,REPRO,LYKALABS,EXCEL,CERA,ADORWELD
31-Aug-17 AJMERA,MANAKSIA,RANEHOLDIN,JENSONICOL,KCP,HOVS,EON
1-Sep-17 DLINKINDIA,GARWALLROP,NORBTEAEXP

Source: NSE, Elite wealth Research

Major Economy Indicators


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Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


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