Samvat 2073: Sensex, Nifty End Flat In Muhurat Trading As Banks Reverse Gains; Lupin Tops
Indian shares climbed in a shortened session marking the start of the Hindu new year.
Watch BloombergQuint’s Muhurat Trading Coverage From BSE!
Closing Bell
Indian shares closed little changed at the end of a special Muhurat trading session as investors booked profits in some of the lenders.
The S&P BSE Sensex was little changed at 27930 while the NSE Nifty lost 0.1 percent to 8,625. The market breadth remained in favour of the bulls with 1,179 advances, 409 declines and 291 stocks remained unchanged.
The Sensex has climbed 8 percent since last Diwali on November 11, 2015, as overseas investors stepped up purchases of local shares. Twenty two of the 30 index members have risen since last year’s Muhurat day, powered by Tata Steel Ltd.’s 83 percent rally and GAIL India Ltd.’s 54 percent advance. Software maker Wipro Ltd. and Lupin Ltd., a drugmaker, fell 17 percent and 16 percent respectively.
Foreign investors have sold $616 million of local stocks this month, the first outflow since February and the most among eight Asian markets tracked by Bloomberg.
The Sensex has climbed 6.9 percent this year and trades at 16.6 times projected 12-month earnings, compared with a multiple of 12.4 for the MSCI Emerging Markets Index.
The markets will be closed on Monday for Diwali and resume regular trading on Tuesday.
Must Read: The Promising Stars of Samvat 2073
President Trump Would Change the World... Not in a Good Way
So what could derail Indian equities’ upmove? Well, think global, said Pashupati Advani of Globalforay. He said last year as well it was global events that proved to be speed bump for Indian equities upmove and next year as well things are likely to remain the same.
“There will be a lot of issues if Donald Trump actually makes it to the White House; the walls are going to be up metaphorically in lot more places than just Mexican border,” he told BloombergQuint Agam Vakil and Shraddha Babla.
After opening nearly 0.6 percent higher, the NSE Nifty Bank index dropped as much as 0.3 percent dragged down by IndusInd Bank and HDFC Bank.
Upgraded Construction Companies for the First Time: Credit Suisse
Neelkanth Mishra, India Equity Strategist at Credit Suisse said that interest rates may fall more than what most people expect. This was one factor behind the decision to upgrade the construction sector for the first time in his career as a strategist.
Insurance Companies For the Win? Yes, Says Deven Choksey
U.S. elections and U.S. interest rates are being given undue weightage, said Deven Choksey of KRChoksey Investment Managers. He said the outlook for Indian equities remains positive though uncertainty cannot be avoided.
“The amount of investment in transmission and distribution business is getting higher because generation capacities are increasing,” he told BloombergQuint during a special Muhurat Trading show. “Insurance business can have a smarter run going forward in the next 10 years.”
Opening Bell
Indian shares climbed higher in a shortened session marking the start of the Hindu new year, Samvat 2073.
The S&P BSE Sensex gained 0.5 percent to 28,085 while the NSE Nifty advanced 0.5 percent as well to 8,678. The market breadth was firmly in favour of the buyers at 1236 advances, 246 declines and 366 stocks remaining unchanged.
All 19 sectoral indices on the BSE gained led by S&P BSE Consumer Durables and the S&P BSE Healthcare.
Muhurat Trading to Begin At 6:15pm, End At 7:30pm
Determined by the new moon, the session known as Muhurat trading, held every year on Diwali, is deemed the most auspicious time to start investments.
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The Promising Stars of Samvat 2073
Samvat 2073 presents investors with some interesting set of stocks that they should have in their portfolio. This list has been compiled based on 10 brokerage reports and consists of stocks, which have been recommended by more than one brokerage.
Click HERE to get a comprehensive list of stocks that are likely to well in Samvat 2073
“Investors Will Get A Good Entry Point Into Pharma Stocks In Samvat 2073”
In Samvat 2072, the Indian market dealt with its share of volatility. The initial few months were marked by high selling pressure, but following the Union Budget, the bulls took over.
What will Samvat 2073 hold for Indian equities? Which sectors or stocks will drive the market going forward?
Nilesh Shah, managing director at Kotak Mahindra Asset Management Company says earnings growth will be a crucial trigger for the market, and themes like auto, consumer durables, and pharma will be the ones to watch out for.
To catch the entire interview, click HERE
A “Firecracker” of a Diwali Without the Firecrackers
Things are Likely to Only Get Better, Says Envision Cap's Nilesh Shah
Consumer discretionary stocks along with financials and specialized engineering firms are some of the investment opportunities that Nilesh Shah of Envision Capital is eyeing.
In a conversation with BloombergQuint, Shah said that as per capita GDP in India rises, consumer discretionary firms could benefit significantly. At the same time, a push towards financial inclusion could help lenders like IDFC Bank which are attempting to target that segment.
Shah also thinks that real estate stocks may yield better returns than investing directly in property.
Click HERE for the entire interview.
All That Glitters is Still Gold
Indian’s love for gold was once again justified this year, with the yellow metal giving a return of 16.7 percent, against the Sensex’s 8 percent return at the end of Samvat 2072.
Welcome to the BloomgergQuint Special Samvat 2073 Muhurat Trade Coverage!
Samvat 2072 has been comeback year for Indian equities. After posting its third worst year in a decade, the S&P BSE Sensex and the NSE Nifty50 managed to notch decent gains lead by the metal stocks.
Besides the metal stocks, energy producers were on top of their game partly due to falling crude oil price and the government’s reform initiatives. On the other hand, telecom has been the least performing sector this year bogged down by regulatory hurdles and a ongoing tariff war.
Technology stocks, after topping the winners list in Samvat 2071, had a forgetful year courtesy global uncertainties like the “Brexit”.
