NIFTY daily update

NIFTY rose for the second straight day, clocking the highest level since Feb. The 50-share NSE index NIFTY rose 0.28% to settle at 10614.35 on Tuesday. The Indian benchmark NIFTY rose to their highest level since Feb powered by strong gains in financial and energy stocks, but metal stocks capped the gains following a drop in global aluminium prices. The investors sentiment remained upbeat on appreciating rupee, relentless buying by domestic institutional investors (DIIs) and encouraging earnings by blue-chip companies.

Looking overseas, European markets trading higher following Asian markets which finished broadly higher on Tuesday. The Global equity markets mostly rose today as latest company earnings reports continued to beat expectations, suggesting that the economy remains strong.

Seven out of eleven sector gauges compiled by the NSE ended higher led by NIFTY FIN SERVICENIFTY FIN SERVICE, NIFTY PVT BANK, NIFTY REALTY, NIFTY PHARMA and NIFTY BANK as top gainers. On the flip side, NIFTY IT, NIFTY METAL and NIFTY MEDIA are top losers.

From the NIFTY 50 basket of shares, RELIANCE, YESBANK, BAJAJFINSV, GAIL, M&M and ICICIBANK outperformed as top gainers while HINDALCO, WIPRO, TECHM, INFY, HCLTECH and VEDL are the top losers.

Top stocks to watch on Wednesday 24 April

RCOM: This stock plunged by 10.03% and ended at Rs.17.95. This stock trading volume rose by 105 percent with numerous trades were intraday trades. This stock is steadily scaling down for 5 days and currently trading below its recent support zone and the near-term resistance is seen around Rs.25.

TV18BRDCST: This stock plunged by 4.39% and settled at Rs.64.2. Derivative traders were aggressive in unwinding long positions and Open interest reduced by 5.51 %. This stock is trading below its recent support zone and the near-term resistance is seen around Rs.71.

MOTHERSUMI: This stock trading volume hiked by 142 percent with 57% of the trades are taken for delivery. This stock is continuously advancing for 4 days and currently settled above the recent resistance zone and the short-term support is around Rs.308.

GMRINFRA: This stock surged by 6.62% and finished at Rs.20.95.  This stock trading volume rose by 79 percent with numerous trades were intraday trades. Derivative traders were aggressive in adding long positions and Open interest gained by 20%.  This stock is oscillating nearer to its resistance zone of Rs.21.

AUROPHARMA: This stock is listed in top traded counters with numerous trades were intraday trades. This stock is continuously advancing for 4 days and currently settled above the recent resistance zone and the short-term support is around Rs.550.

ANDHRABANK: This stock slipped by 3.3% and closed at Rs.38.1. Meantime it maintained a remarkable weakness in last five session.  This stock is continuously breaking low for 5 days and currently trading below its recent support zone and the near-term resistance is seen around Rs.46.

BIOCON: This stock advanced by 2.3% and closed at Rs.650.65. This stock trading volume hiked by 251 percent with most of the trades are intraday trades. This stock is currently settled above the recent resistance zone and the short-term support is around Rs.576.

HINDALCO: This stock plunged by 7.37% and to close at Rs.236.75.  This stock is listed in top traded counters with most of the trades are intraday trades. The strength of the sellers is evident from the opening gap appeared in the daily. This stock is trading inside the trading range and the support is seen around Rs.203 and resistance is seen around Rs.258.

YESBANK: This stock strengthened by 3.5% and to close at Rs.324. This stock trading volume increased by 103 percent with most of the trades are intraday trades. This stock is currently settled above the recent resistance zone and the short-term support is around Rs.294.

TORNTPHARM: This stock trading volume rose by 315 percent with 64% of the trades gone for delivery. This stock is currently settled above the recent resistance zone and the short-term support is around Rs.1240.

Q4 Result Insights

ICICI Prudential Life Insurance Company

  • Profit after tax fell to 3.41 billion in March 31,2018 from 4.08 billion rupees in March 31,2017, a decline of 23%.

  • March quarter show net premium income of 86.56 billion rupees versus 75.26 billion rupees last year.

  • Asset under management increased by 13.5% to 1395 billion rupees in FY18 from 1229 billion rupees in FY17. As at March 31, 2018 the Company has a debt-equity mix of 53%:47%. Over 90% of the debt investments are in AAA rated and government bonds

  • The Board has approved a Final dividend of Rs.3.30 per equity share (including the special dividend of Rs1.10 per equity share) for H2-FY2018.

  • The profitability of new business written, as measured in the Value of New Business (VNB), increased 93.1% to Rs.12.86 billion in FY2018 from Rs.6.66 billion in FY2017.

View point: Insurance industry has been under penetrated industry in India. ICICI  prudential life insurance having at total market share of 11.8% is poised to grow at significant rate, if the company maintains good persistency ratio among the customer.

BHARTI AIRTEL

  • Airtel’s consolidated profit for the period stood at 4190 million rupees, a decrease of 11% in profit which was at 4706 million rupees last fiscal year in march quarter and net income dropped at 78% to 829 million rupees.

  • The topline revenue also made a dip of 10% to 196343 million rupees from 219346 million rupees from last year on march quarter.

  • Total customer base increased from 39243 to 41382 on QoQ basis.

  • Earnings per share stood at 0.21 a decrease of 77%, when compared to last fiscal march quarter.

  • Net profit margin for this quarter stood at 0.4%, an decrease of 77% on YoY basis.

  • The board has also recommended a final dividend of Rs.2.50 per equity share for the financial year 2017-18.
  • India ARPU (average revenue per user) for voice and data combined – a key operational indicator fell 6% on QoQ basis.

View point: Airtel is facing a huge tariff war with its competitors, which affects its margins and profit. If the tariff war continues, Airtel would still face a huge headwind in terms of its future growth prospects.