Stocks to Watch For Tuesday – CapitalHeight APOLLO HOSPITALS ENTERPRIES LTD.


APOLLO HOSPITAL FUTURE has given breakout at upper side of trend line and sustaining above that trend line and its 200 DMA Stock is forming bullish rounding pattern on daily charts and has registered its stochastic oscillator at 60.44 with a crossover of its slow MA with good volume. Stock is having consolidation above its 50 and 200 DMA.

Technical indicators are also indicating towards positive movement in the upcoming days volume also increased. It is recommendedto buy APOLLO HOSPITALS ENTERPRISE LIMITED around 1250-1252 for the target of 1290-1335 with the stop loss below 1190.8.

 For More Update About Market Click here: CapitalHeight.

Impact on Output Won’t Last Beyond This Quarter, Says Sitharaman

demonetizationThe impact of government’s demonetization move is too early to be determined as has been done by various institutions, believes the Commerce Minister Nirmala Sitharaman.

Speaking to CNBC-TV18, Sitharaman said that stress in the economy has reduced with currencies now reaching people. “Entire output [industry production] speculation, even if impact is there, it won’t be beyond this quarter,” she added.

Unaccounted money is getting extinguished and in turn, the government’s liability too, is getting extinguished.

Replying to opposition, she said that “government would not want to do something like this so blatantly.”

Sitharaman emphasized that the money collected will be used for India’s higher growth. Development of infrastructure and housing for all will continue to be on the government’s agenda.

Speaking over the weakening rupee, she said that currencies all over have taken a beating in last 1-1.5 years. “Volatility is now becoming a new normal,” she said, adding that factors other than currencies are also impacting trade globally.

Below is the verbatim transcript of Nirmala Sitharaman’s interview to Shereen Bhan on CNBC-TV18.

Q: I will come to demonetization in just a bit but let me ask you about the matter which has been creating headline it is not really a call for concern at this point of in time but that has to do with the volatility that we have seen in the rupee. Now if I were to take a look at the emerging market currency basket and the rupee actually hasn’t depreciated very much, the lira, the peso have depreciated significantly more. I know that the commerce ministries view’s has been weaker rupee in fact would be perhaps beneficial not just for export but for the Indian economy, so what is your view currently on the depreciation on the rupee?

A: It was just a rupee that we are talking about, about depreciated value, yes, going by the principle of economics you would say that will help our exports. However, in the last one and a half year, we have seen globally most currencies fluctuate and the rupee’s fluctuation in a way the point that you have by implication meant, has not really been all that much. That has also been something on which many economists are writing and speaking about the fluctuation of currencies.

The rate at which fluctuation have affected one or the other currency in comparison with the rupee, so eventually the sum and substance of this currency story is the volatility is now becoming a new normal. Not just talking about rupee, of any currency globally, depressed demand, contracting economies, traditional markets being attracted, newer markets slow to rise, so that is the picture in which our exports are trying to find their feet.

Q: Given the fact that you are seeing this currency volatility and you believe that this is not going to be the new normal what is the way that you look at the rupee because if I were to look at estimates and I am just quoting to you one estimate that Deutsche Bank for instance has put out saying that the rupee is likely to breach 70 next year and head to 72.50 by December end to 2017 and I said this is just one estimate what would be the comfort zone for the government what would be beyond the comfort zone of the government. What is the picture as far as you are concerned?

A: Currency is one of the factors on which we will be looking at, but in general when you are trying to rave the export performance, rave it, up you are looking not just at the currency but you are looking whole lot of things.

So, it is going to be combination of factors which will have to work on simultaneously to have any plans for keeping the pace of the revival of exports as it were. So, it is not going to be just rupee which is going to pre-occupy me I will also have to talk about many other ways of supporting our exports so that they become competitive and in a market of this kind of a nature.

Q: The Finance Ministry has said that the RBI will intervene as and when it is appropriate. Would 70 for instance make the government feel uncomfortable? Anything beyond 69 makes the government feel uncomfortable? Do you believe that the RBI would need to step in at that point in time?

A: That is the point. Whether it is 69, whether it is 70, all this is happening with good lot of uncertainty other than on behalf of the currency. So, demand itself is not reviving. So, even if rupee depreciates, will it really give it enough of a headway when you are talking about exports?

So that is the reason why I repeat, it is not just the currency, not just the Indian rupee, but it is also the current phase where the floating is significantly palpable, measurable, gaugeable and therefore, of all countries and also at the rate at which economies and their revivals are happening.

Q: Let me ask you about demonetization. Once again, we have seen parliament being adjourned on account of the oppositions demands as the Prime Minister addressed the Rajya Sabha. But keeping the politics aside, if I were to ask you about the economic impact and once again, whether it is Citi, it is Morgan Stanley, bunch of people have put out various kinds of estimates, the former Prime Minister said that it could impact the GDP to the tune of 2 percent. Let me quote what the Centre For Monitoring Indian Economy (CMIE) had said. They say that the cost of demonetization during the 50-day window till December 30 will be about Rs 1.28 lakh crore. Businesses are expected to pay the biggest price for the demonetization exercise and the immediate impact could be around Rs 61,500 crore. This is just one estimate that has been put out by the CMIE. Does the government have any broad estimates that you can share with us because it has been over a fortnight. The problem that people are faced with is that there is a lack of data from the government in terms of what this exercise could actually cost the economy.

A: At this stage, I would think that it would be too early for me to speak about any figures or numbers with which I can say this is what it is going to be on trade. This is what it is going to be in terms of GDP. But what I would certainly, with a responsibility, be able to say is these 10 days between November 10 and November 20 have seen two different developments.

One is where sectors where there is labour intensive production and difficult to admit, but post Jan Dhan mission of the government, we still hear some exporters tell us that a lot of labourers, migrant workers do not have accounts. As a result of which, payments are still being made in cash and they would want more withdrawal facility over and above what government has put as a ceiling for a week. So that production is not going to be affected.

For me, it is a situation where I have to immediately respond just so that payments are not affected, just so that production is not affected, just so that eventually output does not suffer, export does not suffer.

Q: Has there been and you have had a meeting with the Export Promotion Council. The sense that we get when we talk to textile workers from Surat to Tirupur etc is that there is pain at this point in time. Do you have a sense of whether there has been retrenchment and layoffs across these labour intensive sectors in this past fortnight?

A: That is where I am coming to say that even during that interaction the employers went only that far to say one, please ensure that cash is given to us, greater withdrawal right is given to us and in some sectors particularly textile, weaving and carpet weaving and so on they said because we fear we may not have adequate cash in hand to disperse temporarily we might want not to have the production activity because we may not at the end of the day be able to give the payment.

But, then after meeting with them and soon after a few days we also know the inputs that we are getting from various quarters is that the stress has eased out. Currency is reaching them and therefore equally the worry that was there in the mind should not be any longer going to the extent of having to shut down businesses but even if there is a level of stress they would still be able to pay and keep the workers onboard.

So, I don’t think beyond the 10 days about which we are talking there should be any impact on production itself. So, the pain and the stress recognised, taken onboard and with the easing of currency gradually things will have found a way out by the end of this quarter.

Q: So, you are saying it will last at least a quarter the pain that we are talking about?

A: I am not talking about the pain. The entire output speculation that we are engaging in if output is going to be affected at all even if there is any impact on the output I don’t think it will be beyond this quarter and as regards people who have voiced to me about concerns about having more limits more cash is also going in now and therefore whether we increase the limit or not I know by now there is more currency reaching people.

Q: But have you got some sense from the finance ministry on whether we could expect a relaxation as far as the withdrawal limit is concerned?

A: I have kept giving a lot of inputs and many of them have been responded to. We will see what happens on this.

Q: You said that you can’t give us a number at this point in time but is this two percent an exaggeration, is two percent of an impact on gross domestic product (GDP) an overestimation. This is the former Prime Minister who spoke in parliament and consensus at this point in time if I look at all the reports that are coming from various economists, from brokerages etc is between 1 percent and on the extreme of 3 percent. So, where would you think the impact could be?

Q: You said that you can’t give us a number at this point in time but is this two percent an exaggeration, is two percent of an impact on gross domestic product (GDP) an overestimation. This is the former Prime Minister who spoke in parliament and consensus at this point in time if I look at all the reports that are coming from various economists, from brokerages etc is between 1 percent and on the extreme of 3 percent. So, where would you think the impact could be?

Therefore, for us to conclude on the basis of this 13 because progressively the situation is improving. So, factoring in all that and only after that I would think genuinely can anyone give us an impression of what it will be rather than for us at this time risk a number and that is where I had very clearly said former Prime Minister Dr Manmohan Singh who was a Governor once in RBI, Finance Minister, Prime Minister and he speak on the floor of the house. So, I feel it is too early for anyone to conclude on what will be the number.

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Sensex, Nifty sluggish; SBI down 2%, auto stocks rise

bear-marketThe market is sluggish with the Nifty hovering around 7950. The 50-share index is up 28.25 points or 0.4 percent at 7957.35 and the Sensex is up 56.65 points or 0.2 percent at 25821.79. About 1048 shares have advanced, 1346 shares declined, and 169 shares are unchanged.

Auto stocks are rising with Bajaj Auto, Hero MotoCorp and Maruti leading the pack. HUL and Adani Ports are other gainers in the Sensex. Among losers are BHEL, SBI, L&T, GAIL and NTPC.

The rupee slipped from its initial recovery, dropping 7 paise to Rs 68.23 in late morning deals following bouts of dollar demand from importers despite higher domestic equities.

Overseas, the US dollar took a breather against basket currencies in early Asian trade, as investors consolidated the gains built on expectations of increased fiscal spending and higher inflation under a Trump administration.

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Nifty nears 6-month low; shuts below 8,100 mark

Dalal Street CapitalHeightThe Indian equity market declined for the fourth consecutive session. A sharp plunge in the rupee against the dollar and exception of strong foreign capital outflows after hints of rate hike in December by US Federal Reserve Chairwoman, Janet Yellen dampened the market sentiment. The Sensex dropped over 100 points during the last trading session while the broader Nifty50 hit a 6-month low. The domestic market posted its worst week since February 12.

Moreover, the prevailing cash crunch following the government’s demonetization decision has severely impacted select sectors such as real estate, consumer goods and metal. Besides, a mixed trend on other Asian bourses also influenced the trading momentum. Prices of few key commodities have fallen considerably since the move was announced amid drying up of demand. Also, fears have risen regarding production of the key commodities as farmers are not getting enough cash to buy seeds for winter crops.

The 30-share index closed down 77 points, or 0.30%, at 26,150.24. The BSE Sensex opened at 26,270, touched an intra-day high of 26,349 and low of 26,118.

The NSE Nifty closed with a loss of mere six points at 8,074. The NSE Nifty opened at 8,097 hitting a high of 8,129 and low of 8,048.

Among the 50-stocks of Nifty, NTPC, Eicher Motors, Sun Pharma, Bharti Airtel, Hero MotoCorp and Ambuja Cements were among the gainers on NSE, whereas Zee, Asian Paints, Tata Steel, Bharti Infratel, GAIL and TCS were among the losers today.

Today’s decline was led by the metal, consumer durables, banking, FMCG, finance and technology stocks, while oil & gas, realty, power, pharma and telecom were among the gainers.

The India VIX (Volatility) index was down 4.83% at 17.8050. Out of 1,367 stocks traded on the NSE, 610 declined and 714 advanced today. The BSE Midcap and Smallcap indices ended up in the range of 0.2-0.6%.

The rupee was trading down 34 paise at 68.15 per US dollar.

Asian markets closed mostly lower on Friday, with the Japanese market leading gains on the back of a relatively weaker yen, helping shares of the country’s big exporters. At the close in Tokyo, the Nikkei gained 0.58% to hit a new 6-month high. Hang Seng closed marginally higher, whereas Shanghai Composite slipped 0.5%.

European indices are trading in red.  The FTSE 100 and CAC 40 were trading down by 0.4% each, while DAX is marginally lower.

Meanwhile, IT stocks continue to reel under pressure for the third straight day after Nasscom revised the IT sector’s growth forecast downwards to 8-10 per cent this year, as its biggest members such as TCS, Wipro, and Infosys struggle to grow faster because of an uncertain environment.

Punj Lloyd gained 2.6% to Rs 19.55 on NSE after the company said that its wholly-owned subsidiary executed definitive agreements with India Power Green Utility to co-develop 30 megawatts of solar assets.

Dilip Buildcon advanced 1.6% after the company announced that Northern Coalfields (M.P) has declared DBL-DECO (a joint venture of the Company) as the successful bidder (L1) for Excavation of Overburden of First Dig (Solid) and Re-handling by Mechnical Means at specified places at NIGAHI OCP of NCL at a project cost of Rs 1,469.8 crore.

Career Point rose 1%. The company has acquired 1,68,000 fully paid up equity shares 40% of Rs 10 each of Gyan Eduventure Pvt. Ltd., the subsidiary of the Company and consequently, Gyan Eduventure Pvt. Ltd. has now become a wholly owned subsidiary of the Company.

Canara Bank gained 2.6% after the bank has revised deposit interest rates in different maturities in retail and bulk deposits in the range of 5bps to 25 bps and these are effective from November 21, 2016.

IL&FS Transportation Networks advanced 1% after the company announced that the joint venture of the Company and IL&FS Engineering and Construction Co in the ratio of 51:49, has emerged as the Lowest Bidder for the development of two road projects of Madhya Pradesh Road Development Corporation under Madhya Pradesh District Road II Sector Project. The company had quoted an amount of Rs 213.5 crore for Project I and Rs 161.7 crore for Project 2 respectively. The construction period for Project 1 is 730 days and Project 2 is 548 days.

Deepak Fertilisers dropped 6.2%.  The company reported a net profit of Rs 26.96 crore for the quarter ended September 30, 2016 against Rs 28.31 crore in the corresponding quarter last year.

Petronet LNG climbed 8.3%.  The company’s net profit of Rs 460 crore in July-September is 82% higher than the Rs 253 crore net profit in the same period a year ago.

Reliance Industries rose 1% after the company entered into a global partnership agreement with GE to enter into the Industrial Internet of Things (IIOT) space by building joint applications on the latter’s Predix platform.

A total of eight stocks registered a fresh 52-week high in trade today, whereas 56 stocks touched a new 52-week low on the NSE.

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IFCI Q2 FY17 net profit at Rs 15 crore

Dalal Street CapitalHeightIFCI Ltd has announced the Unaudited Standalone results for the quarter ended September 30, 2016

The company has posted a net profit of Rs 15 crore for the quarter ended September 30, 2016 as compared to Rs 182.6 crore for the quarter ended September 30, 2015. Total Income has decreased from Rs 1121.9 crore for the quarter ended September 30, 2015 to Rs 809.3 crore for the quarter ended September 30, 2016.

Stock Commentary:

IFCI Ltd ended at Rs 23.95, down by Rs 0.5 or 2.04% from its previous closing of Rs 24.45 on the BSE.

The scrip opened at Rs 24.1 and touched a high and low of Rs 24.25 and Rs 23.6 respectively. A total of 2869164(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 3897.48 crore.

The BSE group ‘A’ stock of face value Rs 10 touched a 52 week high of Rs 30.85 on 23-Sep-2016 and a 52 week low of Rs 19.5 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs 24.8 and Rs 21.85 respectively.

The promoters holding in the company stood at 55.53 % while Institutions and Non-Institutions held 23.34 % and 21.12 % respectively.

The stock traded below its 100 DMA.

BSE 23.45 [1] ([4.09]%)
NSE 23.45 [0.90] ([3.70]%)

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Bharat Forge Q2 FY17 Net Profit Falls 26%

Bharat Forge Ltd has announced the following Unaudited Standalone results for the quarter ended September 30, 2016:

The company has posted a net profit after tax of Rs 127 crore for the quarter ended September 30, 2016 as compared to Rs 172 crore for the quarter ended September 30, 2015.

Total income has decreased from Rs 1,199 crore for the quarter ended September 30, 2015 to Rs 966.8 crore for the quarter ended September 30, 2016.

Stock Commentary:

Bharat Forge Ltd is currently trading at Rs 854.9, down by Rs 3.35 or 0.39% from its previous closing of Rs 858.25 on the BSE.

The scrip opened at Rs 869.95 and has touched a high and low of Rs 869.95 and Rs 842.2 respectively. So far 1399395 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 19980.06 crore.

The BSE group ‘A’ stock of face value Rs 2 has touched a 52 week high of Rs 979.35 on 10-Oct-2016 and a 52 week low of Rs 686.8 on 24-Jun-2016. Last one week high and low of the scrip stood at Rs 893 and Rs 820.1 respectively.

The promoters holding in the company stood at 46.74 % while Institutions and Non-Institutions held 33.61 % and 19.64 % respectively.

The stock is currently trading below its 50 DMA.

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How Will The U.S. Election Impact Markets?

The seemingly never-ending spectacle that is the US presidential election campaign is entering its final act. By the end of the night on November 8, either Hillary Clinton or Donald Trump will become the new president-elect of the world’s largest economy. While it seems like the media has dissected every aspect of the upcoming election, from email servers to hand sizes, comparatively little ink has been spilled about how election could affect global asset markets.

This special report seeks fill in those gaps. In the following sections, we provide an overview of the US election process and timeline; a look at a couple of the candidates’ most market-moving economic policies; and an examination of how markets have historically reacted under different political regimes, including actionable takeaways to use in your own trading.

What Do Polls Say?

Opinion polls have been volatile throughout the national campaigns, though Hillary Clinton has generally maintained a lead over her Republican rival. That said, last week’s news that the FBI has reopened its investigation into Clinton’s controversial email server has brought Donald Trump back within striking distance. According to poll aggregator Real Clear Politics, Clinton is currently polling at 47.2% nationally vs. 45.5% for Trump and the situation remains highly fluid:

We’re traders, not political pundits, so we won’t try to handicap the likelihood of each outcome. Overseas bookmakers are giving Hillary Clinton a 70/30 chance of winning the election. The experts at the election forecasting site agree that these odds are accurate. Based on the website’s “Polls-only” model, Editor in Chief Nate Silver and company currently give Clinton about a 70% chance of taking the oath of office, though that forecast will of course change as new polls come in.

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