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Trendlyne Marketwatch    
17 Nov 2017, 03:45PM

Moody's dominated the market mood today, with the Sensex closing up afte gathering a 0.71% gain. Moody's upgrade of India's sovereign ratings had investors celebrating; the ratings agency said that the reforms in progress would push India's longer term growth to substantially higher levels.  

Market breadth is horizontal. Of the 2812 stocks traded today, 1493 were gainers and 1133 were losers.

Riding High:

Largecap and midcap gainers today include Jubilant Life Sciences Limited (673.65 9.15%), Adani Enterprises Limited (155.60 7.46%) and DLF Limited (223.00 6.75%).


Largecap and midcap losers today include GlaxoSmithKline Pharmaceuticals Limited (2500.00 -3.36%), Tech Mahindra Limited (483.10 -3.10%) and Page Industries Limited (23400.00 -3.07%).

Crowd Puller Stocks

30 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Shree Renuka Sugars Limited (17.65 14.76%), Puravankara Projects Limited (108.30 11.42%) and Jubilant Life Sciences Limited (673.65 9.15%).

Top high volume losers on BSE were Ashiana Housing Limited (174.00 -3.71%), Page Industries Limited (23400.00 -3.07%) and Cholamandalam Investment and Finance Company Limited (1262.50 -2.88%).

Gujarat Pipavav Port Limited (131.25 -2.63%) was trading at 130.2 times of weekly average. Ashoka Buildcon Limited (211.00 3.05%) and GATI Limited (129.55 8.96%) were trading with volumes 39.7 and 12.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

25 stocks hit their 52 week highs, while 1 stock hit their 52 week lows.

Stocks touching their year highs included - 3M India Limited (16199.90 1.84%), Bank of India (207.05 -0.24%) and Cholamandalam Investment and Finance Company Limited (1262.50 -2.88%).

Stock making new 52 weeks lows included - Jagran Prakashan Limited (161.00 -2.07%).

10 stocks climbed above their 200 day SMA including GATI Limited (129.55 8.96%) and J.Kumar Infraprojects Limited (264.00 3.51%). 2 stocks slipped below their 200 SMA including GlaxoSmithKline Pharmaceuticals Limited (2500.00 -3.36%) and K.P.R. Mill Limited (715.00 -2.52%).

The Baseline    
17 Nov 2017, 02:42PM
Volume Shockers: Gujarat Pipavav and Ashoka Buildcon top the list click to expand

Gujarat Pipavav and Ashoka Buildcon are leading the Volume Shockers screener as of this writing. Ashoka Buildcon recently got a fresh Buy call from HDFC Securities, with analysts expecting execution related issues to have been sorted out since September 2017. The share price for Ashok Buildcon has been gaining over high volumes. 

Port company Gujarat Pipavav is headed in the opposite direction on higher volumes after it missed its earnings estimates in the second quarter, compelling HSBC to recommend a sell on the stock. Alarm bells for the analysts were the company's shrinking recurring profit, which was down 21% YoY. An unfavorable cargo mix is growing into a stumbling block for the company's revenue growth. 

For the full volume shockers screener, click here

The Baseline    
17 Nov 2017, 12:26PM
A long overdue upgrade for India: Moody's first in 14 years click to expand

India’s first sovereign upgrade by Moody’s Investors Service, from Baa3 to Baa2, marks a long pending shift - as economists and analysts point out, the rating upgrade has been overdue, in the light of the multiple reform cycles India has been through in the past decade and a half. China's Moody's rating in comparison, is A1. India would have to go up two more grades - the next higher is Baa1 - for the country to reach the grades that Moody's considers highly investment friendly economies, from A3 and up.  

Moody's overall report card on the Indian economy was optimistically cautious. It points out that India is "midway through important structural and economic reforms". It pointed to GST, monetary polict improvements, the Aadhaar framework and direct transfers of benefits as key reasons for the upgrade. Interestingly, Moody's also mentioned demonetization - which has got a bad beating among Indian economists as not having boosted India significantly.

Moody's focus, it said, is on the long term - "measures like GST have undermined growth over the near term", it said, but will boost growth over the longer period. Indian analysts as well as superstar investor Rakesh Jhunjhunwala hailed the move, with some saying that the upgrade served as Modi's response to his critics. Politically, it remains to be seen how the government's recent moves play out in upcoming state elections, with effects of GST and demonetization having significantly impacted India's SME and informal economy. 

Photo: Samuel Zeller

HDFC Standard Life Insurance Company Ltd    
17 Nov 2017, 11:30AM
In contrast to its peer, HDFC Standard Life Insurance sees good debut click to expand

The shares of insurance company HDFC Standard Life Insurance Co. Ltd debuted 7.24% higher on markets, following an IPO offering that was subscribed 4.9X when it opened this month. The price has been climbing since its debut - the company is as of this writing trading at a share price of Rs. 341, compared to the issue price at the upper end of Rs. 290 per share.

The IPO, the third largest this year, was a pure offer for sale, and valued the company at Rs. 58,277 crore. The IPO saw a dilution of 14.92% promoter stake. Insurance has seen a swell of IPOs this year after regulatory changes that required companies to list. HDFC Standard Life follows ICICI Lombard, SBI Life, GIC Insurance and New India Assurance in listing - NIA which listed most recently (earlier this month), has had a lukewarm listing below its issue price. 

BP Wealth released a IPO Note report for HDFC Standard Life Insurance Company Ltd on 10 Nov, 2017.
The New India Assurance Company Limited    
16 Nov 2017, 04:22PM

The New India Assurance Company, which made its debut in the markets earlier this week (a lukewarm debut below the issue price) has seen its profits grow 3X for this quarter ending September compared to the same period last year, after reducing underwriting losses. The company's share price rallied briefly on the news.

The claims ratio needs to be below 100% for an insurer to start seeing profits. The company said that the company's incurred claims ratio fell 800 bps to 87.45%. Price increases, management said, helped the company bring down its loss ratios, and the firm has increased prices by 25% in its retail health business.

The New India Assurance Company Limited is trading above all available SMAs
Reliance Industries Limited (RIL)    
16 Nov 2017

India's telecom market has dominated headlines over the past year with the upheaval created by its newest entrant, Reliance Jio. Amid the teeth gnashing of competitors and complaints by both Jio as well as Airtel, Idea and Vodafone to TRAI, the industry is changing significantly from where it stood over a year ago. Both technology and the fierce competition over tariffs and customers are responsible. 

Reliance Jio's offers of free calls and extremely cheap data resulted in evaporating margins and falling revenues by competitors, compelling consolidation of the sector. Since August 2016, Reliance Jio has managed to capture 11% in subscriber market share. In the meantime, Bharti Airtel's net debt ballooned to Rs 91,480 crore at the end of September 2017, with the company struggling with lower profitability and cash flow. Airtel also announced a purchase of Tata's mobile phone business in a cash-free transaction. 

Overall, analysts from Morgan Stanley say that profitability in the telecom sector will improve in the next year as Jio raises its tariffs, and the pressure eases off its competitors. Analysts are expecting Reliance Jio to increase its tariffs every few months going forward. However, Jio recently announced a triple cashback scheme valid until november 25 when it saw flagging subscriber growth last month. So despite Morgan Stanley's optimism, it remains to be seen how long Jio is willing to offer sweeteners to lure subscribers from competitors, and how long Airtel and other players can survive without lasting damage to their businesses.  

Reliance Industries Limited (RIL) has gained 37.10% in the last 6 Months