HDFC AMC, Sobha, Crompton Greaves, among top stocks betted on by brokerage firms
For over a week now, the equity market has been rangebound despite the steady inflows of foreign money. The domestic benchmark indices touched record highs in the month of March which is a sharp rise of 10%. In February, the market had witnessed lows. More than Rs.60,000 crore has been pumped in by foreign institutional investors since February dragging the indices to move upward. Traders and investors are turning wary due to the upcoming general elections. The declining consumption trend and Skymet’s projection of below normal monsoon have been cited as the other reasons for traders and investors turning wary. Mutual fund experts believe that strong corporate earnings could aid the market inch higher though the political environment is likely to be challenging. The stocks that brokerage firms are betting on at the moment are those of Sobha, HDFC AMC, Cholamandalam Financial Holding, Crompton Greaves Consumer, Aditya Birla Fashion and Retail, Godrej Agrovet, Hikal, Mahanagar Gas, Equitas Holdings, and Jyothy Laboratories. These stocks are expected to generate alpha and deliver positive returns.
12 April 2019
Equity fund inflows hit a 5-month high in March
Prompted by the rally that pushed the $2.2 trillion stock market to a record, inflows into domestic equity mutual funds touched a 5-month high in the month of March. According to the data released by the Association of Mutual funds in India (AMFI), stock funds witnessed inflows around 118 billion rupees which is the highest since October and more than twice the numbers recorded in the previous month. Domestic equities registered their best month in 3 years in March owing to the plowing by foreign investors worth $6 billion. The last best numbers were registered in September 2010. The reason behind the performance displayed by Indian equities is attributed to the prospect of Narendra Modi winning a second term in the upcoming general elections and a shift by global banks towards revived demand for riskier securities. The strong liquidity from DIIs (Domestic Institutional Investors) has also boosted the market to buffer against outflows stirred by global shock in recent years. The total assets of the industry grew by more than 3% on a month-on-month basis to 23.8 trillion rupees.
10 April 2019
Equity mutual funds witnessed strong inflows in FY19
The mutual fund industry saw a growth in its AUM (Assets Under Management) during the period ended March when its AUM stood at Rs.23.79 lakh crore. This data was revealed by the Association of Mutual Funds in India (AMFI) which also revealed that the industry grew by over 11% year-on-year (YoY). This growth was 3% higher when compared to the previous month. In March, the industry had witnessed outflows of Rs.22,359 crore. Among the mutual fund categories, equity mutual funds saw the highest inflows which spiked by 130% on a month-on-month (MoM) basis to hit Rs.11,756 crore in March. The broader equity market was dragged by strong inflows from Foreign Portfolio Investors (FPIs). The Systematic Investment Plans (SIPs) continued to be the preferred mode of retail investors to invest in equity mutual funds. Investments worth Rs.8,055 crore was made through SIPs into equity funds in March. In the next fiscal, the mutual fund industry expects equity inflows of about Rs.100,000 crore. In FY19, equity funds witnessed strong inflows of Rs.1,11,858 crore.
9 April 2019
AUM of mutual fund industry rises by 3.5% QoQ
The mutual fund industry saw its average assets under management (AUM) rise by 3.55% quarter-on-quarter for the period between January to March 2019 as per the data released by the AMFI (Association of Mutual Funds in India). The AUM of the industry during the period was Rs.24.46 lakh crore. On the other hand, the AUM for the period between October and December was recorded at Rs. 23.62 lakh crore. On a year-on-year basis, the average AUM in FY19 increased by 6.12%. Fund managers have revealed that there is strong participation from retail investors despite the market volatility and though the growth is slow, steady inflows from SIPs (Systematic Investment Plans) have boosted the growth in the AUM. The joint investor awareness campaigns conducted by the AMFI and AMCs (Asset Management Companies) have also driven the growth in the AUM. Among the AMCs, HDFC Mutual Fund, ICICI Prudential Mutual Fund, SBI Mutual Fund, and Aditya Birla Mutual Fund showed the highest growth in its AUMs. They registered a growth of 2.19%, 4.24%, 7.36%, and 1.71% respectively. The AUM of HDFC Mutual Fund stood at Rs.3.42 lakh crore.
8 April 2019
Reliance Communications, MAC Hotels, etc., among worst performers on BSE
The Indian equity benchmark BSE Sensex gained 149.13 points to touch 38,833.85 on 5 April due to purchase of frontline blue-chip counters. However, there were some stocks in the index that performed poorly and these include the stocks of MAC Hotels, Indian Acrylics, Space Incubatrics Technologies, Blue Chip Tax, Tayo Rolls, Gyscoal Alloys, Clarus Infra, Stanrose Mafat, Poona Dal, and Reliance Communications. Mac Hotels was down by 12.24% while Blue Chip Tex lost 11.52%. Out of the 50 stocks in the Nifty index, 10 stocks were trading in green while the remaining were trading in green. In other news, the shares in the FMCG sector that fared poorly in the Nifty FMCG index were the stocks of Procter & Gamble, Hindustan Unilever, GlaxoSmithKline Consumer Healthcare, and Godrej Consumer Products. The index was trading low 29,856.45 with a loss of 0.47%. On the National Stock Exchange (NSE), the most traded stocks were that of Tata Motors, SBI, Vodafone Idea, Ashok Leyland, ICICI Bank, Indiabulls Housing Finance, BHEL, ITC, and BEL.
5 April 2019
Share prices of L&T witness gains after its hydrocarbon arm bags multiple contracts
The share prices of Larsen & Toubro (L&T) witnessed gains of almost 1% after its hydrocarbon segment bagged multiple contracts across business segments and over the last one month, its stocks were up by more than 6%. On the Bombay Stock Exchange, the stocks of L&T were trading at Rs.1,387.90 which was a gain of Rs.8 or 0.58%. The modular fabrication business of the infrastructure and engineering major won a contract for Process (PAU) and Piperack (PAR) modules for a process plant that includes fabrication, procurement, load-out, and pre-commissioning of the modules. The execution of the contract will be done from the modular fabrication facility of L&T which is located at Kattupalli near Chennai. L&T recently decided to sell its entire shareholding in L&T Kobelco Machinery for Rs.43.5 crore where it holds 51% stake. The company has also recently launched a new-age technology platform known as L&T Nxt and over the next five to seven years, it plans to generate around $1 billion of revenue from this platform.
4 April 2019
SBI Mutual Fund buys shares in Crompton Greaves Consumer Electricals
Asset management firm, SBI Mutual Fund has bought 39 lakh shares of Crompton Greaves Consumer Electricals at a price of Rs.212.5 per share from Nordea 1 Sicav. On the Bombay Stock Exchange (BSE), the seller offloaded 77,57,531 shares at Rs.212.55 per share. In the meantime, Shoppers Stop has sold 4.8 lakh equity shares to Abakkus Growth, owned by marquee investor Sunil Singhania, at Rs.474. 35 per share on the BSE. On the National Stock Exchange (NSE), 1.5 lakh shares of RPP Infra Projects were acquired by Hsquare Globetrade LLP at Rs.126.38 per share. 1,51,59,069 shares of Reliance Communications were sold by Rattanindia Finance Private Limited at Rs.3.84 per share. Around 29,48,769 shares of SH Kelkar were bought by Fidelity Series Emerging Markets Fund at Rs.151.5 per share while 29,96,533 shares were sold by Virtus Kar International Small Cap Fund at the same price on the NSE.
3 April 2019
Anchor investors buy Rs.530 crore worth shares of Metropolis Healthcare
Ahead of its Initial Public Offering (IPO), Metropolis Healthcare managed to raise around Rs.530 crore through the share of sales to anchor investors. According to a regulatory filing, around 60,23,293 equity shares of the company was allotted to 26 anchor investors at Rs.880 per unit. Some of the anchor investors are UTI Equity Fund, Small Cap World Fund, Sundaram Mutual Fund, Fundsmith Emerging Equities Fund, and Edelweiss Crossover Opportunities Fund. The IPO has fixed a price band in the range of Rs.877 to Rs.880 per equity share. Last week, the diagnostics chain made an announcement that it will make a public offering of its shares to raise Rs.1,200 crore. The IPO will be open for subscription from 3 April to 5 April 2019. 62,72,335 shares will be offloaded by promoter Sushil Shah while 74,12,760 shares will be offloaded by investor CA Lotus Investments. The money raised through the IPO will be utilised by the firm to close their debts. Through the IPO, 10% to 12% of the stake of Carlyle Group and the promoters will be diluted.
3 April 2019
IT stocks witness gains dragged by Infosys and HCL Tech; Zee Entertainment plunges by 2%
Despite weak Asian markets, domestic benchmark indices are showing signs of positive trading with the Nifty index gaining 51 points to hit 11,496 while the Sensex index saw gains of 166 points to trade at 38,298. The winner is the Nifty IT index which outperformed the sector dragged by Infosys, HCL Tech, Wipro, Tata Consultancy Services, and Tech Mahindra. The media stocks also buzzed with gains from Zee Entertainment, TV Today, PVR, Network 18, Dish TV, INOX Leisure, and EROS International. From the real estate segment, the winners were Oberoi Realty, Unitech, DLF, Godrej Estates, Phoenix Mills, and Prestige Estates.
On the other hand, metal stocks of Jindal Stainless, Hindustan Zinc, Coal India, and JSW Steel experienced losses. The top gainers in the Nifty index were the stocks of Zee Entertainment, Adani Ports, Tech Mahindra, HCL Tech, and Infosys while the losers were Power Grid, ONGC, Dr. Reddy’s Labs and JSW Steel. The stocks that were most traded were ones of GRUH Finance, YES Bank, TCS, Infosys, and ICICI Prudential. On the National Stock Exchange (NSE), the stocks of JB Chemicals, Bata India, Capri Global, and Spacenet Enterprises managed to hit 52-week highs. On the Bombay Stock Exchange (BSE), 416 stocks declined, 1,080 stocks advanced, and 68 stocks did not show any changes.
28 March 2019
Stocks of RBL Bank and HDFC Bank hit 52-week highs
The early trading hours of 27 March 2019 saw the Bank Nifty index hit an all-time high when the bank stocks continued to rally for the second consecutive day. The index hit a new intraday high of 30,129.25 when the index surpassed its previous record high of 30,008. The gains witnessed by the Bank Nifty was led by IndusInd Bank, RBL Bank, YES Bank, Punjab National Bank, and Bank of Baroda with gains of 3.8%, 1.86%,1.5%, 1.3%, and 1% respectively. Stocks of HDFC Bank and RBL Bank surged to Rs.2,328.05 and Rs.667.80 intraday which is a new 52-week high.
Market experts are of the belief that the rally will continue for a while in the index whose initial target was 30,250. On 26 March, the Bank Nifty index gained over 700 points and while during the entire week, a rally of about 1,000 points was witnessed. However, a day earlier, the index had recorded an intraday low of 29,156. The rallying of the index was also boosted by the PSU banks which, in turn, rallied by almost 5.5%. The banking segment is likely to experience buying interest by foreign institutional investors (FIIs) and once the Bank Nifty index manages to close above 30,000, it is likely to see more upsides.
27 March 2019