Fried on Fri­day

Things were on course till one com­pany’s loss re­port im­pacted the mar­ket sig­nif­i­cantly

Mid Day - - City - ARUN KE­JRI­WAL Dis­claimer:

THE week gone by be­haved ex­actly as en­vis­aged. Then, Fri­day hap­pened. The im­pair­ment pro­vi­sion pro­vided by Tata Mo­tors saw the com­pany re­port a loss of R27,000 crore and the share fell. Fri­day saw mar­kets lose over 1.3 per cent. Mar­kets how­ever man­aged to close with small gains, with BSESENSEX up 77.05 points or 0.21 per cent at 36.546.48 points. NIFTY gained 49.95 points or 0.46 per cent to close at 10,943.60 points. The broader in­dices saw the BSE100, BSE200 and BSE500 were a mixed bag with a move­ment of 0.08 per cent, and neg­a­tive 0.09 per cent and 0.27 per cent re­spec­tively. BSEMIDCAP and BSESMALLCAP were down 2.13 per cent and 2.11 per cent.

Loser user

The top sec­toral gainer was BSETECK up 1.66 per cent fol­lowed by BSEIT 1.23 per cent and BSECONS DURABLE 1.13 per cent. The top loser was BSEPOWER down 5.63 per cent fol­lowed by BSECAP GOOD 3.53 per cent and BSEMETAL 2.62 per cent. In in­di­vid­ual stocks the top gainer was ZEE En­ter­tain­ment up 12.02 per cent fol­lowed by In­fratel 9.69 per cent and Ba­jaj Auto 9.43 per cent. The top loser was Tata Mo­tors down 16.75 per cent fol­lowed by In­dia bulls Hous­ing 9.32 per cent and Yes Bank 5.84 per cent.

Trump fight

The In­dian Ru­pee lost 6 paisa or 0.08 per cent to close at R71.30. Dow Jones gained 42.44 points or 0.17 per cent to close at 25,106.33 points. Don­ald Trump is now fight­ing against sev­eral fronts. Firstly the China-US trade wars. Se­condly, he is fight­ing Democrats on the Mex­i­can wall and funds re­quired for it. Thirdly, he him­self is un­der in­ves­ti­ga­tion as far as his busi­nesses are con­cerned.

Sur­prise pack­age

RBI de­liv­ered a sur­prise pack­age with a rate cut which was un­ex­pected. Repo rates were cut by 25 ba­sis points to 6.25 per cent. This rate cut is af­ter 17 months. RBI also changed its stance to neu­tral from cal­i­brated tight­en­ing, in­di­cat­ing that they are com­fort­able with the cur­rent level of in­fla­tion and do not ex­pect the same to rise in the near term. This in­ci­den­tally was the Gover­nor Shak­tikanta Das’s first pol­icy meet­ing. Mar­kets prob­a­bly did not like the un­ex­pected rate cut. This can be seen as af­ter re­main­ing in pos­i­tive ter­ri­tory they ended flat for the day.

List­ing look

There were two list­ings last week. The first was Xelp­moc Tech­nol­ogy and De­sign Lim­ited which had raised R23 crore at R66. Shares listed weak and gained there­after to close at R71.30, a gain of R5.30 or 8.03 per cent. The other is­sue was from Chalet Ho­tels Lim­ited which had raised R950 crore through a fresh is­sue and an of­fer for sale of 2.4685 crore shares at R280. The share listed on Thurs­day and closed at R292.15, a gain of R12.15 or 4.34 per cent.

Short go­ing

Mar­kets have seen BSESENSEX gain about 500 points and NIFTY about 80 points. Mar­ket play­ers have been able to get some share or the other to short ev­ery week and make money. This short­ing is on ac­count of news flow and has made play­ers bear­ish in their view as well. Last week was the turn of ADAG (Anil Ambani) com­pa­nies and Fri­day was Tata Mo­tors. With such op­por­tu­ni­ties ev­ery week it is nat­u­ral for their con­fi­dence lev­els to rise and they see mar­kets look­ing weak as well. It is this bear­ish sen­ti­ment that is push­ing mar­kets and mak­ing them ex­tra volatile. Ev­ery rally is sharp and so are the falls.

The week ahead would see the last week for the quar­ter re­sults end­ing De­cem­ber 2018 be­ing de­clared. There are bound to be sur­prises in them, some pos­i­tive and some neg­a­tive. Con­tinue trad­ing on both sides with buys on sharp dips and sell­ing on ral­lies in the com­ing week. Mar­kets will trade in a broad range like last week, but with a pos­i­tive bias.

Arun Ke­jri­wal is founder of the Mum­baibased ad­vi­sory firm Ke­jri­wal Re­search & In­vest­ment Ser­vices Pvt Ltd.

No fi­nan­cial in­for­ma­tion what­so­ever pub­lished any­where in this news­pa­per should be con­strued as an of­fer to buy or sell se­cu­ri­ties, or as ad­vice to do so in any way what­so­ever. All mat­ter pub­lished here is for ed­u­ca­tional and in­for­ma­tion pur­poses only.


A bor­der fence is seen near where law en­force­ment ve­hi­cles line up which marks the bound­ary be­tween Mex­ico and the US (Ea­gle Pass, Texas). The bor­der has be­come a point of con­tention be­tween Trump and the Democrats.

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