ICICI Bank among top 5 stocks

According to Sandip Sabharwal, asksandipsabharwal.com, as and when the economy recovers the greater operating leverage is in mid-caps which will play out over the next two years.

Any significant decline from here is unlikely given that inflation differentials between India and the USA are very low now and INR has already fallen 10 percent this year, he said.

The outlook on global equity markets, and as such for India, are positive. The economic growth outlook is strong, inflation benign and central bank interest rates are still accommodative for the growth.

merging Markets (EMs) have seen a sell-off led by China fears and Dollar Index up move. However, this has bought the markets to extremely oversold levels on an overall EM analysis. As such, flows to EMs are likely to pick up going forward and India will also benefit

If this is the right time to go out and buy – which theme according to you holds most potential? Is it the large-caps space or mid-caps and why? Also, what should be the criteria of picking companies?

The greater value is in midcaps today given the sell-off seen in this space. A large part of the large-cap universe, especially retail banks and consumer stocks, is somewhat overvalued despite strong growth fundamentals.

Capital Goods and infrastructure stocks, select pharmaceutical stocks and individual stocks in the mid-caps offer value. The criteria have to be valuations relative to growth prospects. Looking into the rearview mirror to forecast the future is not a great idea.

Rupee is posing as a big headwind for Indian markets. Do you think we could hit Rs 71-72/USD in the next 6 months? What will be its implications on stocks, and economy?

he rupee is not a headwind as long as we are in line with other EM currencies. The Chinese Yuan and INR have fallen the same. Currencies have no absolute value, it is all relative.

Any significant decline from here is unlikely given that inflation differentials between India and the USA are very low now and INR has already fallen 10 percent this year

pre-opening trade

Nifty above 11,650 in pre-opening trade, Sensex higher by 

over 150 points

Rupee opens:The Indian rupee gained in the opening trade on Monday. 

opened higher by 15 paise at 69.76 per dollar versus 69.91 Friday.

On Friday, Rupee rose following weakness in the dollar against its major 

crosses and ahead Fed chairman statement at the Jackson Hole Symposium. In 

the recent past, rupee has been under pressure primarily on back of global 

factors than domestic factors, said Motilal Oswal.

Market at pre-open: It is likely to be a good start to the Monday morning 

as pre-opening rates point to a positive opening. 

At 09:01 hrs IST, the Sensex is up 122.34 points or 0.32% at 38374.14, 

while the Nifty is up 94.10 points or 0.81% at 11651.20. 

autonomy and privacy of citizens: Congress

Ram Vilas Paswan calls for broader consensus in setting up Indian judicial  stock market services

The district-level agitations will be held from September 7 to 15, while the state-level agitations will be organised from September 16 to 30.

The Congress has also set up a separate control room at the party headquarters here to monitor district-level agitations

Please ensure that a massive state-level agitation and a march to the Governor's House for submission of memorandum to the Governor," party general secretary Ashok Gehlot has said in a letter to the party's state unit chiefs.

According to party sources, the Congress will make the alleged Rafale scam a 'poll issue' and target the Modi dispensation over its claim of corruption-free governance.

The Congress has accused the Modi government of not disclosing the price of the aircraft and alleged that the price was three times higher than that negotiated during the UPA dispensation with France's Dassault Aviation, the manufacturer of the aircraft.

Stuck in a stock

Stuck in a stock market where trading will be suspended soon? Experts suggest investors to exit.

If the listed entity remains not compliant for six months after suspension, then the trading will stop completely.

Recently, BSE and NSE said trading in nine stocks will be suspended. These companies, including well-known names like Gitanjali Gems, Amtek Auto, are under scanner for not complying with listing norms pertaining to submission of financial results.

The Modi government has been stringent with regards to shell companies and compliance with market nomrs. The corporate affairs ministry (MCA) and even the regulators — RBI and SEBI — have hinted that non-compliance will not be tolerated.

The number of cases has gone up where investors have suffered because of company management decisions. In some cases, oversize debt or overambitious projects destroyed companies' or even forced them into bankruptcy.

Experts who Moneycontrol spoke to said companies which don't comply with regulations are better avoided.

The framework (LODR - Listing Obligations and Disclosure Requirements - Regulations) was put in place as a stronger mechanism to check non-compliance of listing conditions, wherein exchanges will have powers to freeze promoter shareholding and even delist the shares of such defaulting companies," Prashanth Tapse, AVP Research, Mehta Equities told Moneycontrol.

The exchanges said if any company complies with the provisions of the LODR (Listing Obligations and Disclosure Requirements) Regulations on or before the date prescribed by the exchanges, the trading in its security will not be suspended.

The BSE asked companies to comply with regulations by September 4 and in case of NSE, the date is September 5.

Trap of Badly-run Companies

If someone is caught in such a trap then it would be difficult for one to exit as the value of shares either would be far below their buying price or they would have to keep hoping for improving performance which can give them better valuations.

Bet on these top 20 stocks

earnings review: Bet on these top 20 stocks that could return up to 86%

Experts expect the rally to continue going forward, but volatility may increase as we are moving closer to state and general elections
The northward journey that started in July, following sideways movement in the April-June quarter (after a correction in February and March) continued in August, helping benchmark indices scale fresh highs.

In line to better-than-expected earnings, stability in crude oil prices, sustained domestic inflows and easing trade war tensions after renewed talks between the US and China boosted investor sentiment.
In the last two months, benchmark indices rallied 8 percent. The BSE Midcap and Smallcap indices rose 7 percent and nearly 6 percent, respectively, though the year-to-date performance of all these indices is mixed. The Sensex climbed over 12 percent and Nifty nearly 10 percent, but the midcap and smallcap indices lost 7 percent and 12 percent, respectively.
Experts see the rally continuing going forward, but the volatility may also increase as we are move closer to states and general elections.
If the September quarter earnings,  which will begin in October, improve further, then the market may see new highs, experts said, adding that any sharp selling could be because of global reasons and not domestic.
Analysis of the Q1 FY19 results indicate that an earnings recovery, which we were expecting in the current and next financial year, is on track. So far, results have largely been in line or better-than-market expectations," ICICI Direct Research said.
Overall, the research house maintained its optimistic outlook on the equity market. "With the forecast of normal monsoons and firm rural demand, amid a pick-up in industrial activity, we expect the Sensex to be on track to stage an impressive earnings recovery, growing in excess of 20 percent CAGR in FY18-20e."
Inflows into domestic mutual funds remained strong despite some moderation in the last few months. Average monthly inflows into equity oriented funds, including the equity component of balanced funds in the first four months of FY19, is around Rs 14,000 crore. The same during the four months of FY18 was Rs 21,500 crore. Inflows from systematic investment plans have seen a consistent rise and stood at Rs 7,500 crore in July.
The outlook for the company remains strong for the upcoming years, backed by the aggressive expansion plans taken up by the company in the past few years and positive market condition. The diversified business model of the company shields the companies earnings from any unfavourable situation.

Stocks where Q1 PAT grew 100%

Strong earnings have helped D-Street to skyrocket to fresh record highs in the last two months and stocks which rose in anticipation of good earnings in the small & midcap space delivered over 100 percent net profit growth.
The June quarter earnings were largely in-line with expectations boosted by low base due to demonetisation and GST, but experts are building a case for earnings recovery which could well play over next two quarters.
For the first quarter, earnings were led by consumption and commodity companies, with metals and oil & gas accounting for more than 100 percent of the incremental earnings growth, suggest experts.

Within the consumption pack, auto lagged with a broad-based miss on profits and consequent earnings downgrades.

The Q1FY19 net profits of the Nifty50 index grew 12.3 percent which was 2 percent above our estimates due to lower losses of certain PSU banks. We model 20% growth in net profits of the Nifty-50 ndex for FY19 (down from 23% before 1QFY19 results season) and 24% for FY20,” Kotak Institutional Equities said in a note

However, valuations are heady and macro weak and faces growing risks from a large number of global issues. We note that 2-year growth numbers (CAGR) are quite mediocre, raising concerns about the strength and sustainability of the ongoing economic recovery, which is led by consumption demand. On the other hand, the Indian banking NPLs seem to be peaking and resolutions moving ahead, a good sign,” it said.

Strong earnings have helped D-Street to skyrocket to fresh record highs in the last two months and stocks which rose in anticipation of good earnings in the small & midcap space delivered over 100 percent net profit growth.

Stocks in the small & midcap space which have already more than doubled investor wealth in 2018 gave stellar results in June quarter where net profit grew by more than 100 percent. The list includes names like Dolat Investments, Graphite India, Mangalam Organics, Nelco, Excel Industries, India Glycols, Merck, Muthoot Capital, Jubilant FoodWorks, and L&T Technology Services, according to data compiled by AceEquity.,

Data suggests that top stocks when filtered from highest to lowest returns flagged these 10 stocks in which net profit grew by over 100 percent on a year-on-year basis. Are these top buys? Well, maybe not, at current levels, say experts.

changed for the market

The Nifty50 after opening sharply higher above psychological 11,400- stock market  extended rally to move near its intraday record high and finally ended at record closing high on Friday, driven by broadbased buying.
The index formed bullish candle on the daily candlestick charts as well as weekly scale. It closed half a percent higher for the truncated week.
The broader markets also participated in the rally today with the Nifty Midcap index rising over a percent while all sectoral indices ended in the green with Nifty Bank, FMCG, Metal and Pharma rising 1-2 percent.
The Nifty50 started off session above 11,400 levels at 11,437.15 and rallied further during the day to touch an intraday high of 11,486.45 but failed to reclaim its intraday record high of 11,495.20 seen on August 9. The index ended at record closing high of 11,470.75, up 85.70 points.
Volatility in the market has again started coming down from the proximity of 14 percent. Today the India Volatility Index fell by 3.48 percent to 13.17.
According to Pivot charts, the key support level is placed at 11,439.57, followed by 11,408.33. If the index starts moving upwards, key resistance levels to watch out are 11,494.27 and 11,517.73.

The Nifty Bank index closed at 28,128.55, up 302 points on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 27,995.54, followed by 27,862.47. On the upside, key resistance levels are placed at 28,219.93, followed by 28,311.27.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a gain of 42 points or 0.37 percent. Nifty futures were trading around 11,520- level on the Singaporean Exchange.

PNB Housing hikes

PNB Housing Finance, the country’s second-largest housing finance company by deposit book size, has launched the facility of online deposits both on its website and mobile app.
Not only this, the company is also offering an attractive rate of interest of up to 8.45% per annum for a 44-month deposit, marking a rise of 35bps over the last ROI.

PNB Housing is adept in bringing the highest level of convenience and unparalleled service to its customers. It thrives on digital interventions that bring ease in transacting with the company, from anywhere and anytime.
The latest addition will allow applicants to create deposits in just three simple steps with the help of e-KYC and digital signatures. The auto-renewal and online redemption are other distinct advantages of the feature. 
PNB Housing Finance Executive Director and Business Head Shaji Varghese said, “Online deposits facility is a relatively new service in the housing finance sector. The paucity of time for many has led to the expectation of getting every service at a touch of a button and our online FD service does just that.
In fact, the auto-renewal and online redemption features are novices in the sector. So anyone can create an FD without having the need to walk into a branch or call customer care, that too, anytime anywhere in just about 10 minutes. As the entire process is automated, it eliminates the need for physical KYC.”
PNB Housing Finance is one of the few deposit-taking housing finance companies (HFCs) offering competitive interest rates. As on June 30, 2018, the deposits book size stands at Rs11,724cr. The company stands fifth among leading HFCs with assets under management at Rs68,578cr as on June 30, 2018.
RESULT OUTCOME: IN LINE WITH ESTIMATE
Revenue growth of 23% yoy in Q1FY19 came on a high base of Q1FY18 (up 33% yoy). The company kept a lid on its operating costs which led to margin expansion on qoq and yoy basis. BFL is setting up an aluminum forging facility in BF PMT in Tennessee, USA, at an investment of $55mn. The facility will commence production in CY20 and will cater to the car market in North America. The management has guided for strong capex over the next two years: Rs500cr in FY19 and Rs400cr in FY20. Record sales of North American Class 8 trucks augur well for BFL, which derives significant revenues from that segment. At CMP, the stock trades at 21x FY20E EPS.