Nifty Closes Below 9,200 On Geopolitical Woes; Financials Drag
Every Dip Is A Buying Opportunity: Gaurang Shah, Geojit Financial Services
Gaurang Shah, head investment strategist at Geojit Financial Services expects fourth-quarter earnings of Indian corporates to recover compared to the previous quarter, as markets gear up for the busy results season starting with Infosys on April 13.
“For Indian markets, its all about earnings now and that will decide the future trend. U.S. data such as the jobs report will not have that much of a bearing than cues domestically. For longer term investors, it’s a buy on dip opportunity but one needs to be very careful in terms of stock picking,” said Shah.
Shah is positive on sectors such as auto, banks, pharmaceuticals, consumer durables and fast moving consumer goods on the back of earnings momentum.
India’s broader Nifty index closed lower for a second session on Friday, paring weekly gains, as investors turned jittery following U.S. missile strike on Syria.
The S&P BSE Sensex closed lower 0.74 percent at 29,706.61, while the NSE Nifty fell 0.69 percent to end at 9,198. Both the indices, however, posted a gain of about 0.2 percent each for the week.
The market breadth was in the favour of losers, with about 5 stocks declined to every 4 stocks that advanced.
The India NSE Volatility Index, a benchmark gauge of options prices on the Nifty gauge, closed higher by 3.6 percent after rising as much as 4.6 percent earlier in the session.
Among the sectoral indices, BSE Bankex and BSE Metal index fell 0.96 percent and 1.2 percent, respectively. BSE Oil & Gas index was the only index to end higher with gains of 0.48 percent.
Indian rupee strengthened to as much as 64.69 per dollar, its highest since August 2015, after the Reserve Bank of India held its tight monetary policy stance citing inflationary concerns. It was last trading at 64.22 compared with Thursday's close of 64.52.
Bonds extended falls, with sentiment also hit after the central bank said it would start curbing excess liquidity after the government’s move to withdraw high denomination currency.
The benchmark 10-year bond yield rose 5 basis points to 6.82 percent after rising 12 basis points on Thursday.
Oil Refiners Jump On Report Over Pricing Review
Shares of Indian Oil, Hindustan Petroleum and Bharat Petroleum climbed between 3-4 percent.
State-run oil refiners plan to review prices daily to align them more closely with international rates, the Economic Times reported citing unidentified company officials.
- Indian Oil Corp. (+3.5%)
- Hindustan Petroleum Corp. (+2.9%)
- Bharat Petroleum Corp. (+4.4%)
- S&P BSE Oil & Gas index (+1.1%)
Simplex Infrastructure Gains Most In Eight Years
- Simplex Infrastructure hit the 20% upper circuit for the first time since May 19, 2009. Stock trading near its highest level in almost two years.
- Relative strength index above 70, which indicates that the stock is in the overbought zone.
- Trading volumes more than 5.7 times its 20-day average.
- Simplex Infrastructures, which undertakes civil and structural construction projects, has a market capitalisation of more than Rs 1,800 crore.
- Stock trades at a price-to-earnings ratio of 26.5 times its 12-month trailing earnings per share and 29 times its estimates for the coming year.