Intraday Equity Tips and Market News

Equity tips:- The International Monetary Fund (IMF) has trimmed its forecast for the global economic growth for 2019 and 2020; however, it hikes projection for India’s economic growth by 10 basis points to 7.5% for FY20. The global growth forecast has been trimmed for 2019 by 0.2 percentage points and for 2020 by 0.1 percentage points below last October’s projections to 3.5% and 3.6%, respectively. This is on the back of weaker performance in some economies, notably Europe and Asia, amid trade wars, said IMF in its update of the flagship World Economic Outlook released in Davos. However, India’s GDP is expected to expand 7.5% in FY20 and 7.7% in FY21. The FY20 forecast has been raised by 0.1 percentage point from the projected outlook in October 2018. “India’s economy is poised to pick up in 2019, benefiting from lower oil prices and a slower pace of monetary tightening than previously expected, as inflation pres...

Equity tips:- Historical Volatility  Historical volatility is a measure of how much the stock price fluctuated during a given time period (in past). It is referred to as the asset's actual or realized volatility. Traders make use of historical volatility to estimate the future movement, but there is a chance that the future volatility could deviate from the expected value as the factors influencing the price could change. Major fundamental changes could cause the asset price to stray away from the expected historical volatility. Interpretation of Historical Volatility Historical Volatility does not measure direction; it just measures how much the securities price is deviating from its average. When a security’s Historical Volatility is rising, or higher than normal, it means prices are moving up and down farther/more quickly than usual and is a sign that something is likely to happen, or has already happened, regarding the unde...

Equity tips:- Consensus expectations for Q3FY19E: Net interest income – Rs12,191cr, up 18.2% yoy and 3.6% qoq Pre-provision profit – Rs10,034cr, up 18.7% yoy and 5.8% qoq Loan-loss provisions – Rs1,756cr, up 30% yoy and 11.7% qoq PAT – Rs5,451cr, up 17.4% yoy and 8.9 qoq Q2FY19 performance highlights: Net interest income – Rs11,760cr, up 21% yoy and 9% qoq Pre-provision profit - Rs 9,480cr, increased 21% yoy and 10% qoq Loan-loss provisions - Rs 1,820cr, up 23% yoy and 12% qoq PAT - Rs5,010cr, up 21% yoy and 9% qoq Remarks: We expect advances growth of 23% yoy and deposit growth of 21% yoy for the quarter. Growth in unsecured loans, portfolio buyout from HDFC to drive retail growth. Increase in LDR and MCLRs will aid margins, but drop in CASA ratio to 41% in 3QFY19 (44% in 3QFY18) to offset the benefit. Asset quality should remain benign. GNPA ratio stood at 1.3% as of 2QFY19, with ~70% PCR. To watch for: 1) asset ...

Equity tips:- Equity benchmark indices opened in positive territory on Friday, tracking positive global cues. However, the market pared gains post opening due to losses in pharma, media, banking, IT, and FMCG stocks. Reliance Industries  stock gained 1% on both the indices after the company posted Q3FY19 numbers and beat the consensus estimates on all fronts. Its revenue grew 55.9% yoy to Rs1,71,336cr against Rs1,09,905cr in Q3FY18. The  Sensex  slipped 44 points at 36,330, while the  Nifty  dropped 24 points at 10,881 levels. The market breadth was negative with 511 shares advancing, 962 shares declining, and 563 remaining unchanged. ONGC ,  Power Grid , Infratel,  NTPC , and Reliance Industries were the top gainers on the Nifty50, while  Sun Pharma ,  UltraTech ,  Yes Bank , GAIL, Airtel were trading in the red. Volatility index India VIX rose 2% to 16.58. The mo...

Equity tips:- SGX Nifty  is at 10,950, up 25 points. For today, expect more colour on the upside with earnings from 'big boy' Reliance due after market, which could see speculative buying in anticipation of good results. Nifty saw a quiet day after Tuesday's sharp rally with index closing flat for the day. Profit booking above 10930 saw mid-caps also give up most gains as Nifty consolidated. Metals, auto & FMCG saw selling, while PSU banks continued to see buying even after a superb December. Global Markets:  Asian indices opened in the green led by the Japanese Nikkei as globally equities seem the choice destination in early January. Earnings meet estimates in large banks in the US and technology stocks set to report better numbers in coming week. Asian indices set to outperform after being decimated in 2018 with Chinese Government spending package aiding sentiment. US Markets:  US indices close in the green led by ba...

Equity tips:- Equity benchmark indices started Tuesday on a positive note tracking SGX Nifty. The Sensex was trading 300 points up at 36,167 levels, while the Nifty gained 85 points to reclaim its 10,800-mark. The gain could be attributed to heavy buying in  Yes Bank ,  Reliance Industries ,  Wipro ,  Zee Entertainment Enterprises , and  Tech Mahindra , which rose 2% each on the NSE. Incidentally,  Bharti Airtel  was the only loser on the NSE, declining 0.09%. All the sectoral indices on the NSE were trading in the green. Nifty IT and Media indices, which gained 1% each, were top gainers. Nifty Realty, Banks, FMCG, and Auto also gained ~1%. India VIX, which measures the market’s expectation of volatility over the near term, dropped ~4%. On the currency front, the Indian rupee reclaimed the 71-mark. Notably, the currency opened 16 paise higher at 70.77 against the dollar compared to i...

Equity tips:- Infosys  board approved  buy back worth Rs 8,260cr  at a share price of not more than Rs800 per share involving 2.36% equity and the tech company also declared a special dividend of Rs4 per share.  Sun Pharma  said commercialization of  Xelpros  has triggered $10mn payment and sales linked royalties to Sun Pharma Advanced Research Company. The research company had licensed Xelpros to Sun Pharma in June 2015. Bharti Airtel  agreed to reduce its stake in its Tanzanian unit to 51% from 60% after months of negotiations with the government, which accused the operator of acquiring the initial shareholding illegally, as per media reports. Yes Bank  named  Brahm Dutt as the part-time chairman . Reserve Bank of India approved his appointment up till July 04, 2020 vide its letter dated January 11. BLS International  announced expansion of operations for Attestation and Ap...