Nifty hits fresh record high of 9,280 at open; RIL up 2% on earnings

Benchmark indices surged at open with Nifty50 hitting a record high of 9280, surpassing April 5 record high of 9,274 following strong cues from Wall Street and Asian markets. A win for the pro-EU presidential candidate in the first round of French elections triggered a relief rally globally. Polls show Emmanuel Macron defeating anti-euro nationalist Marine Le Pen by as much as 30 percentage points in the second round of the French presidential election in two weeks. Back home, March-quarter earnings of index heavyweight Reliance Industries (RIL) came in better than Street expectation adding to the sentiment. At 9:17 am, the S&P BSE Sensex was trading at 29,815 up 159 points, while the broader Nifty50 was ruling at 9,263 up 45 points.In the broader market, BSE Midcap gained 0.7% while BSE Smallcap was up 0.6%. Commodity Trading Tips

"The upswings expected yesterday did not gather enough momentum to topple 9,280 region, and with that move most of the oversold situation has also been neutralized leaving little steam for extended rise. This should mean up moves early in the day could see severly tested by 9,280 and a consolidation could again be in order. Alternatively, direct rise above 9,280 could set the trajectory towards 9,500," Geojit Financial Services said in a note. The Street will also look out for the 23 companies which will report their earnings today. These include IT major Wipro and a number of banking institutions, like IDFC Bank, M&M Financial, LIC Housing Finance and ICICI Prudential Life, among others. On Monday, foreign portfolio investors (FPIs) sold shares worth a net Rs 279.55 crore, while Domestic institutional investors (DIIs) bought shares worth a net Rs 984.17 crore, provisional data available with BSE showed.  Nifty Trading Tips



Robust RIL earnings
 
Reliance Industries (RIL) gained nearly 2% after it reported record annual profits for the last financial year (2016-17), riding high on refining and petrochemicals businesses. For the March quarter, its consolidated net profit rose 12.3% to Rs 8,046 crore, against Rs 7,167 crore for the same period a year ago. The company’s turnover in the March quarter rose 45.2% year-on-year to Rs 92,889 crore, largely meeting Street expectations for net profit. The company also plans to spend a further $2.8 billion on its Jio telecoms business in the current quarter, it said on Monday, taking its investment in the venture to more than $30 billion, Reuters reported.  Future & Option Trading Tips

Why more Indians will be rushing to buy gold this Akshaya Tritiya

Gold jewellery sale is expected to rise sharply on the occasion of Akshaya Tritiya this year, after an appreciating rupee prompted many to book a piece for delivery on the due date. A stronger rupee has meant the Indian price rise is slower than abroad. Akshaya Tritiya is on the coming Friday; it is considered one of the most auspicious occasions to buy a precious metal, primarily gold. In earlier years, people bought coins; the trend has shifted to token purchase of light jewellery, with the high prices. This year, bookings are skewed towards gold jewellery, in a price band of Rs 30,000-50,000 a piece.  Future & Option Trading Tips

Buying has been robust this season, with consumers seeing a rising rupee as an opportunity to buy gold. This is one change over recent years — from an occasional purchase, irrespective of price movement, consumers nowadays buy gold at every price dip, even without any occasion. “It was not a real Akshaya Tritiya last year, due to jewellers’ long strike ahead of this festival. While some of the jewellers and artisans came back to work, buying was not encouraging. We see a completely different trend this year. Akshaya Tritiya and the surrounding week have seen a demand increase. After all the troubles of demonetisation, sales seem to have come back. From the initial estimates, there seems a strong revival in demand. We wouldn’t be surprised to see the demand twice as much as last year,” said Somasundaram P R, managing director of the World Gold Council's arm in this country.  Financial Astrology Tips

Discounts raining this festive season on jewellery sales

Unusual to the common practices, jewellers are offering massive discounts on making charges on precious ornaments this festive season to attract customers and increase sales to cover up the loss they had incurred over the last one year due to government's stringent measures on curbing black money. While organised players like Tribhovandas Bhimji Zaveri (TBZ) is offering upto 50% discount on making charges on gold and diamond ornaments, industry leader Tanishq, the famous jewellery brand from the house of Tata’s, is offering upto 10% discount on diamond studded gold jewellery.  Commodity Trading Tips

Interestingly, such an offer was never heard during wedding and festival season as consumers are considered to buy jewellery under compulsion either to gift to their relatives on the occasion of wedding or any other such needs. Discounts are offered normally during the lean season to lure customers to purchase jewellery to boost sales.“The trend of discount in jewellery during the wedding and festival seasons started in 2016 as jewellers wanted to recover a part of the business they lost during the 42-day strike in protest of excise levy. Earlier, such a discount was never offered during the festival and wedding season. Jewellers, however, are continuing with last year’s trend with an increase in discount percentage to boost sales this wedding season,” said Vijay Jain, Managing Director, Orra, a popular brand in gold and diamond jewellery. Nifty TradinTips

Boost seen for cotton sowing on good realisations, normal monsoon

With the prediction of a normal monsoon, sowing and production of India’s biggest commercial crop, cotton, is expected to get a further boost in 2017, on the back of good returns enjoyed by its cultivators last year. “How much increase in acreage there will be would depend on further clarity on the monsoon but I am sure the crop area is going to go up. Market conditions also seem favourable,” Nayan C Mirani, president of the Cotton Association of India, which represents the trade and industry across the value chain, told this newspaper. Production in the current season has been 34.05 million bales, from a little over 33 million the previous year, though the crop area was less. This was possible because some good rain and lower incidence of whitefly attack gave a boost to yield, said Mirani. In Telangana and Andhra, the fall in price of pulses and chillies will also help cotton. "Farmers who have grown pulses will mostly shift to cotton this time, as they had suffered losses due to poor market prices in the past season. Chilli farmers in Telangana and Andhra are also likely to switch to cotton in the ensuing kharif season. Overall, we expect a 10-15 per cent rise the crop area this time," said P Satish Kumar, director of Hyderabad-based Nuziveedu Seeds. Astrology and Numerology Trading Tips

MCX cotton volume soars to highest turnover of Rs 407 cr

Cotton futures on MCX, more known for its energy and metal commodities derivative trading, has seen the highest trading volume among all agri commodities across exchanges MCX cotton futures turnover clocked Rs 407.65 crore yesterday, which is the highest amongst all agri commodities across exchanges. According to a broker on MCX , which deals with many companies hedging their cotton requirement on the exchange platform, "Big apparel companies like Arvind, multinational trading firms and mid size year spinning and other textile companies have increased their hedging for cotton requirement on the MCX platform, thus contributing to the high volumes." He declined to be named as some companies are hedging through his broking arm on MCX. Nifty Trading Tips

However NCDEX continues to be the major exchange for agri trading and their efforts to lure farmers have yielded results with over one lakh farmers hedging directly or through aggregators on NCDEX platform. NCDEX has tied up with several NGOs and companies to help and guide farmers to hedge their produce on the exchange. An MCX spokesperson said, "During the last one year, MCX's focus on agri commodities has substantially increased, thus strengthening its position in the agri segment." Future & Option Trading Tips

So far as cotton is concerned, MCX cotton prices have become a benchmark for cotton industry in India MCX cotton average daily volume in the month of March 2017 stood at 1.40 lakh bales as compared to 0.75 lakh bales in March 2016, a notable increase of over 86 per cent. Average daily turnover on MCX cotton futures increased to Rs 298 crore in the month of March 2017, up by 148% as compared to Rs 120 crore in March 2016. Financial Astrology Tips

From June, only BIS certified gold refineries can import dore

The director general of foreign trade on Friday issued a notice saying dore (unrefined) gold can be imported only by refineries certified by the Bureau of Indian standards (BIS). An average of 150-200 tonnes are imported a year. The duty on dore is marginally lower, which incentivise such refineries to import and do valuation in India. The new norms on dore imports will be effective June 1. BIS had nearly a year ago developed standards for gold refining but these were not mandatory. India has 32 dore gold refineries, with annual refining capacity of 1,470 tonnes. However, lack of dore availability and business viability has kept only 18 active. Of which, seven or eight have been certified by the BIS. Some refineries in the excise-free zone at Rudrapur in Uttarakhand allow dore refining on contract. This will stop from June. Even these refineries will take several months to get BIS certifications. However, according to a large BIS-certified refiner, “Import and refining will not be impacted because of the new norms. Refineries that were unable to use full capacity will get more business now.” Commodity Trading Tips

Groundnut oil exports could take a hit over high domestic prices

While the government has allowed bulk exports of groundnut oil, edible oil companies are finding it difficult to make a dent in the export market. This is because groundnut oil prices are ruling at about $1,550 a tonne in the international market, while the price of the commodity in India is about $1,815 a tonne. According to players in the edible oil industry, domestic prices are high due to short supply of groundnut, which in turn has made Indian groundut oil prices unviable for exports. “At the current rates in the domestic market, export of groundnut oil from India is not viable. Indian groundnut oil prices are higher than those prevalent in the global market, due to which finding demand is difficult,” said Kamlesh Patel, executive director, N K Proteins Private Limited, which sells edible oils under the brand name Tirupati and Pankaj. Financial Astrology Tips

Last year, India had exported about 10,000 tonnes of groundnut oil in consumer packages. According to the Solvent Extractors Association of India (SEA), the country produces about 300,000-350,000 tonnes every year, and has potential to export about 40,000-50,000 tonnes in bulk. China is the biggest market for Indian groundnut oil. The Government of India allowed bulk export of groundnut oil in March this year. Prior to that, exports were allowed only in consumer packs of up to five kg each. Currently there is little demand for Indian groundnut oil but producers are hopeful of a revival after some time. Jayesh Patel, managing director, Vimal Oil and Foods Limited, says, “Once domestic prices go down, demand for Indian groundnut oil will arise -- hopefully after two or three months.”  Astrology and Numerology Trading Tips

RJio commentary to be in focus as RIL announces its quarterly result today

The market watchers are keenly awaiting Reliance Industries Ltd’s March quarter results, which the oil & gas major will announce after market hours on Monday. While the company is expected to report strong overall numbers amid growth in the refining and petrochemical segment, all eyes will be on RIL’s commentary on Reliance Jio Infocomm, the group’s telecom venture. RIL, now an oil-to-telecom conglomerate, has reported growth in profit after tax (PAT) for eight straight quarters, and beaten consensus PAT estimates in six quarters in a row. "We expect strong earnings, driven by refining and petchem (higher volumes, improved margins). Despite increased losses in domestic E&P (exploration and production), we expect RIL to report a ninth straight quarter on quarter stand-alone PAT growth," analysts with Nomura Research wrote in an April 7 report. Commodity Trading Tips

"Reliance Industries’ (RIL) grandiose $20 billion core capex is seeing fruition, which unlike the uncertainties associated with RJio, will instantly bolster earnings," said brokerage Edelweiss Securities in an April 20 research note. Meanwhile, in a Bloomberg poll, 16 analysts estimated the company’s March quarter revenue at Rs 67,476 crore and profit at Rs 8,016 crore at a standalone level. For the March 2016 quarter, the company had reported a net profit of Rs 7,320 crore and revenue of Rs 54,189 crore on a standalone basis.  Analysts expect gross refining margins (GRMs) for the quarter in the range of $10.5 to $11.2 a barrel, against $10.8 in the quarter ended December 2016.  Nifty Trading Tips

Apart from the March numbers, the analysts will also track the management’s commentary on Reliance Jio, which started charging its subscribers for call and data earlier this month after offering free services for several months.  Analysts at J P Morgan say they would not be surprised to see final sign-ups in excess of 100 million, and a large majority of these having also subscribed to the initial recharge of Rs 303 a month to avail of the three-month free offer. While how many of these subscribers sustain will only be known after August, it will be interesting to see what further details RIL gives on RJio. "Following conclusion of RIL’s ongoing mega capex programme of nearly $48 billion, we expect free cash flow (FCF) to turn positive. With rollout of RJio, capex intensity in the telecom venture will also come off sharply. As capex tapers gradually, we believe cash flows from operations will ramp up with the commissioning of core projects," pointed out Edelweiss Securities in a report.  Future & Option Trading Tips

Nifty Realty index 33-month high; Indiabulls surges over 10%

Shares of real estate companies were in focus with the Nifty Realty index hitting 33-month high on the National Stock Exchange (NSE) in intra-day trade after a strong rally in Indiabulls Real Estate, Housing Development & Infrastructure (HDIL) and Godrej Properties. At 10:15 am; Nifty Realty index was the largest gainer among sectoral indices. It was up 3.7% at 261.80 as compared to 0.47% rise in the Nifty 50 index. The realty index hit an intra-day high of 262, its highest level since July 11, 2014 on NSE. The S&P BSE Realty index was up 4.5% against 0.44% gain in the S&P BSE Sensex. Thus far in the calendar year 2017, the realty index surged 59% as compared to 12% rise in the benchmark index.  Indiabulls Real Estate (up 14% to Rs 163), Godrej Properties (4% at Rs 489), DLF (3% at Rs 193) and Prestige Estate (2% at Rs 260) from the Nifty Realty index, Dilip Buildcon, Ajmera Realty and Hub Town from the non-index hit their respective 52-week highs on the NSE in intra-day trade.  Financial Astrology Tips




Indiabulls Real Estate zoomed 54% in the past six trading sessions after the company announced a business restructuring plan that will see the company splitting itself into two parts. A commercial entity wherein the company hopes to get a strategic investor in place to further develop the business and target doubling of rents in four years and a residential entity, which targets to cut its debt by more than half in two years, eventually reaching a zero debt/positive net cash position. Analyst at JP Morgan in recent report said “In the interim, if the company is able to transact a stake in its rentco, then it will help establish valuation benchmark for the rental company – very similar to what other property developers have done, and accelerate its overall debt reduction target”.  Astrology and Numerology Trading Tips

Create financial awareness, make stock market accessible to everyone: Tyagi

The Securities and Exchange Board of India (Sebi) wants the stock market to become accessible to everyone by creating financial awareness, not through tax incentives. “Some say to get people into capital markets, there should be some support in terms of tax. I am not in favour of any tax concessions. People should come into the market through awareness,” said Ajay Tyagi, chairman of Sebi, at a felicitation ceremony of the National Financial Literacy Assessment Test (NFLAT) at the National Institute of Securities Markets. Only two per cent of the population invest directly in stock markets. Commodity Trading Tips

“India is a huge country and if there is participation from only some areas, something is not correct,” Tyagi said, adding the regulator was planning more investor awareness programmes. It is also in discussion with the government to make financial education a part of schools’ curriculum. “People across the country should invest in equity market, and not just those from Mumbai and Ahmedabad. Every segment should have an opportunity to participate in the financial sector,” the Sebi chief said. An investor survey by Sebi-Nielsen showed 90 per cent of  households prefer bank deposits, while less than 10 per cent prefer stocks and mutual funds. In rural areas, less than two per cent prefer stock market-related investments.  Nifty Trading Tips

The survey revealed many people think trading in derivatives was safer than bond market investments, indicating a lack of financial awareness. Tyagi said the use of technology in the financial sector was emerging as an important area. Demonetisation has led to increased use of digital transactions and people have to understand the new financial instruments available and how these are getting integrated with the financial world. Regulators and the government will have to constantly engage with stakeholders to increase financial literacy, he said. Tyagi also announced that NFLAT would be available through the year.  Future & Option Trading Tips

Jay Bharat Maruti zooms 20% on strong Q4 results

Jay Bharat Maruti  zoomed 20% to Rs 523; also its lifetime high on BSE in intra-day trade, after the company reported a robust 72% jump in net profit at Rs 20.75 crore for the quarter ended March 2017 (Q4FY17) on back of strong operational performance. The auto ancillary company had logged profit of Rs 12.06 crore in a year ago quarter.  Revenues from operations grew 42% to Rs 550 crore from Rs 388 crore in the corresponding quarter of previous fiscal. The operating profit (EBITDA) gained 24.2% at Rs 42.1 crore. EBTIDA margin however, decline to 7.7% from 8.7% in previous year quarter.  Future & Option Trading Tips

For the financial year 2016-17 (FY17), the company reported 35% growth in net profit at Rs 53.77 crore on back of 16.7% rise in operational income at Rs 1,733 crore over the previous year. The board of directors recommended a dividend @ 50% i.e. Rs 2.5 per share (on fully paid up equity share of Rs 5/- each) for the year ended 31st March, 2017. At 11:39 am; the stock was up 17% at Rs 509 on BSE as compared to 0.23% rise in the S&P BSE Sensex. The trading volumes on the counter jump multiple-fold with a combined 1.58 million shares changed hands on the BSE and NSE so far.  Financial Astrology Tips

Hindalco, ITC and Avenue Supermarts most bought stocks by mutual funds

Net inflows into equity mutual funds were strong at more than Rs 8,200 crore in March despite a sharp rebound in the market from the demonetisation lows in December last year. Most-bought and most-sold shares by money managers make an interesting read, given the sharp run-up in stock prices and lofty valuations. Aluminum manufacturer Hindalco Industries emerged as the most-bought stock, with equity MFs pumping in Rs 1,941 crore in it. Consumer-oriented stocks such as ITC and Avenue Supermarts too saw healthy buying. Other top picks included Indian Oil, HDFC Bank, ICICI Bank, and State Bank of India. On the other hand, shares of Reliance Industries, which had jumped nearly 40 per cent in the past few weeks, were the most liquidated. Fund managers released about 3.8 million shares of the oil-to-telecom major from their portfolios. Axis Bank was second on their selling list. Apart from this, IT stocks were largely given the sell call during March. Nifty Trading Tips

Dividends funded by debt to reduce in FY18: Ind-Ra

Ratings agency India Ratings and Research or Ind-Ra has analysed the trend of companies funding dividend payouts via debt in detail and has some interesting findings. The agency expects the debt-funded dividends (DFDs) to decline going forward, after rising in recent times. “The top dividend paying corporates would pay a dividend worth Rs 90,000 crore in FY17-FY18, of which around Rs 5,800 crore will be funded by debt each year -- much lower than the average Rs 9,000 crore DFDs between FY14-FY16. The improvement is attributed to the improved profitability witnessed in FY16, which Ind-Ra expects to continue during FY17-FY18," wrote the agency in a recent report. The quantum of debt-funded dividends as a proportion of the total dividends paid between FY17-FY18 will reduce to 13 per cent from the average of 22 per cent between FY10-FY16, it added. Capital intensive sectors, such as infrastructure, real estate, telecom and power, have historically accounted for a lion's share of DFDs (about 73 per cent) and Ind-Ra expects the trend to continue in FY18 as well. Improving profitability of companies in the metals and mining sector could lead to lower DFDs from them to 1.4 per cent in FY18 from 44 per cent in FY16.  Commodity Trading Tips

Gold jewellers in a fix as confusion over GST levy continues

As the rollout deadline nears for a national goods and services tax (GST), there is ambiguity on its applicability to gold jewellery.  A section of jewellers considers making charges as a service charge and shows this separately while billing. If a service, the applicable rate would be 18 per cent, by the draft GST guidelines.Another section of jewellers, however, adds making charges in value of the jewellery; they do not show it separately but add it to the price of gold. In this case, the applicable rate under GST would be two per cent (assumed, as the government is yet to formally state the rate for jewellery) on the cumulative value of the precious ornaments, if the government continues with the uniform rate on gold and jewellery. Financial Astrology Tips

“By the international standard, bills must be made showing making charges separately. We have urged the government to levy the same rate on gold and jewellery (including on making charges) under GST,” said Surendra Mehta, secretary, India Bullion and Jewellers Association. In the base case scenario, considering gold at Rs 30,000 for 10 gm and a making charge of Rs 4,000, a consumer needs to pay Rs 34,000 for 10g of jewellery. If a two per cent GST is applicable on the entire value of gold, the payable duty would be Rs 680 for the jewellery. If the two per cent GST is made applicable on gold (Rs 30,000 per 10gm) and an 18 per cent GST on making charges, the total duty component would be Rs 1,320 per 10 gm (Rs 600 on gold and Rs 720 on making charge). Thus, a consumer would have to pay Rs 640 extra if the making charge is separated from the value of gold. “In case the government seeks recovery of Rs 640 per 10g, calculated by charging 18 per cent on making charges after a certain period, jewellers would face a big burden of Rs 5,200 crore,” said a senior industry official.  Astrology and Numerology Trading Tips

Markets trade range-bound; Nifty comfortably above 9,100

Benchmark indices open marginally higher as investors remain stock-specific in the March quarter earnings season. Nine companies including Crisil, MindTree, Hindustan Zinc will report their earnings today. Globally, a flat Wall Street and declining oil prices capped the gains. At 10:36 am, the S&P BSE Sensex was trading at 29,373 up 36 points, while the broader Nifty50 was ruling at 9,117 up 13 points. In the broader market, BSE Midcap gained 0.54% while BSE Smallcap was up 0.52%. "Though negativity persisted yesterday, inability to push much beyond 9,100 suggests that bargain hunting is strong enough. Potential for such a turnaround was previously estimated to be at 9,040 a horizontal as well as breakout pivot. Such an upside attempt could force a relief a rally, if 9,170 gives away," said Geojit Financial Services in a technical note. Meanwhile, Crude Oil prices fell to a two-week low, down nearly 4%, after a surprising jump US gasoline inventories and a rise in domestic crude output. US crude futures fell 3.8% to $50.44, the biggest one-day decline since March 8 while Brent crude was down 3.6% or $1.96 a barrel, to $52.93. On Wednesday, foreign portfolio investors (FPIs) sold shares worth a net Rs 673.38 crore, while Domestic institutional investors (DIIs) bought shares worth a net Rs 525.52 crore, provisional data available with BSE showed. Commodity Trading Tips

Sectors and Stocks

Wipro, HDFC Bank, RIL, Adani Ports gained the most on BSE Sensex while ICICI Bank was the biggest laggard followed by Axis Bank and Hero Moto Corp. YES Bank fell nearly 3% even after it reported a 30.2% rise in profit after tax (PAT) at Rs 914.1 crore for the quarter ended March 31, 2017.The private lender had reported a net profit of Rs 702.10 crore in the corresponding quarter of last year.  Nifty Trading Tips 


BSE, NSE add 16 stocks to F&P segment
 
Leading bourses BSE and NSE will introduce futures and options (F&O) contracts in 16 companies to the futures and options segment with effect from 28 April. Currently, 188 stocks have been allowed to trade in the NSE F&O segment. The firms are - Fortis Healthcare, Mahanagar Gas, Multi Commodity Exchange of India, NBCC India, Berger Paints, Can Fin Homes, Cholamandalam Investment and Finance Company, Gujarat State Fertilizers & Chemicals, Nestle India, Godfrey Phillips India, Bajaj Finserv, Mangalore Refinery and Petrochemicals, Balrampur Chini Mills, Raymond, Balkrishna Industries and V- Guard Industries. Future & Option Trading Tips

Indian Oil joins Rs 2-lakh crore m-cap club; stock hits fresh high

Indian Oil Corporation Limited (IOCL) has entered into the elite league of corporate entities with a market value of over Rs 2 lakh crore after the stock price of the company hit new high on the BSE.  IOCL, the oil marketing giant, with the m-cap of Rs 203,171 crore cam in at number ninth position in overall m-cap ranking, the BSE data shows. The company surpassed the fast moving consumer goods (FMCG) major Hindustan Unilever (HUL), which held m-cap of Rs 200,202 crore at 10:36 am.

IOCL stock hit a lifetime high of Rs 418, up 2.3% on the BSE, as compared to 0.16% decline in the S&P BSE Sensex. Thus far in the calendar year 2017, the stock has outperformed the market by surging 29% against 11% rise in the benchmark index. According to media reports, petrol and diesel prices in some cities will see daily change in sync with international rates.  Astrology and Numerology Trading Tips

Sensex down over 100 pts, Nifty below 9,200; Infosys dips 2% post results

Benchmark indices were trading marginally lower in morning trade tracking weak economic data. The March retail inflation rose to highest level in 5 months of 3.81% while the February IIP contracted to 1.2% from 3.3% in January.  IT major Infosys also declared its March quarter results which was in line with the street expectations but the revision of FY18 guidance for the fourth time to 6.5-8.5% in constant currency terms and muted outlook kept the momentum tepid. Globally, geopolitical tensions and Donald Trump’s comment on dollar also affected the sentiment.  In an interview with the Wall Street Journal, Trump said the dollar is getting too strong and that would eventually hurt the economy and he would like to see interest rates stay low. Future & Option Trading Tips

At 1:00 pm, the S&P BSE Sensex was trading at 29,525 down 117 points, while the broader Nifty50 was ruling at 9,173 down 30 points. In the broader market, BSE Midcap gained 0.13% while BSE Smallcap was up 0.55%. "The 9,280 has held firm so far, forcing retreats on every attempt. This suggests that 9,170 could crack, but that should at best ease oscillators a bit, and considering the strength of directional moving indicators, 9,500 objective could then become more certain. Alternatively, inability to float above 9,170 could see prices sliding systematically but slowly feeling for support from 9,070 or 8,900. Favoured view, however does not expect such down moves to sustain," said Geojit Financial Services in a technical note. On Wednesday, foreign portfolio investors (FPIs) bought shares worth a net Rs 580.70 crore, while Domestic institutional investors (DIIs) also bought shares worth a net Rs 701.12 crore, provisional data available with BSE showed. Financial Astrology Tips

Is Infosys' Rs 13,000 crore bonanza for shareholders enough?

Infosys, while announcing its Q4FY17 results, made changes to its capital allocation policy. Starting FY18, it will use 70% of its free cash flows for paying dividends or buying back shares. That apart, the Board has decided to pay Rs 13,000 crore to shareholders by way of dividend or buyback during FY18, subject to necessary approvals. Market, analysts say, had been expecting a significant buyback and capital allocation strategy, and any announcement related to these would be important from stock price perspective. While most agree that the move is a step in the right direction, the amount allocated towards this could have been higher. “I think the markets were expecting a $2 billion outlay through their earlier guidance and commentary. We continue to be positive on the stock given some of the changes that Vishal Sikka has brought in. These are in line with the changes that are happening at the customer-end, in terms of the nature of technology – be it digital in general of analytics and mobility in particular. To that extent, there is need for all IT companies to move up the value chain. Of all IT companies, Infosys is better positioned to adapt to these changes,” said Pramod Gubbi, head of equities at Ambit Capital.  Commodity Trading Tips

“Capital allocation is a positive, although it was known. For Infosys, the move is a break from the past and is definitely a positive. However, the Rs 13,000 crore amount allocated could have been higher. But, I think the company wants to take one step at a time,” he adds. Among other IT heavyweights, TCS board in February approved a proposal to buy back up to 56.14 million equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore, being 2.85% of the total paid-up equity share capital, at Rs 2,850 per equity share. “The allocation includes buybacks and dividends, which I feel is a bit of a dampener. If one takes the dividend out, the amount will be less since now 70% of the free cash flow will be allocated to this. I think Infosys is not trying to set very high expectations, but go along with the Street’s demands. I feel the company can revise this allocation upwards going ahead,” suggests Prakash Diwan, director, Altamount Capital Nifty Trading Tips

Cairn India hits 52-week high; Vedanta up 4% as merger become effective

Vedanta gained 4% to Rs 263, while Cairn India hit a 52-week high of Rs 313, up 3% on BSE in intra-day trade after both the companies on Tuesday announced that that the merger of Cairn India with Vedanta pursuant to the scheme of arrangement has become effective. This merger consolidates Vedanta’s position as one of the world’s largest diversified natural resources companies, with world-class, low-cost assets in metals & mining and oil & gas.“Thursday 27 April, 2017 has been fixed as the record date for determining the list of the shareholders of Cairn India to whom the equity and preference shares of Vedanta will be allotted as per terms of the Scheme,” Vedanta said in a press release.  Nifty Trading Tips



As per the revised terms of the scheme, for each share they hold, Cairn India minority shareholders will receive one equity share and four redeemable preference shares in Vedanta. Cairn India shareholders as on said record date, who will become shareholders of Vedanta, would also receive an interim dividend of Rs 17.70 per equity share as approved by the board of Vedanta on 30 March 2017, it added. At 11:06 am; Vedanta advanced 3% at Rs 260, while Cairn India was up 2% at Rs 309, as compared to 0.56% decline in the S&P BSE Sensex. So far in 2017, Cairn India (up 28%) and Vedanta (up 20%) has outperformed the Sensex, which gain 11% during the period. Future & Option Trading Tips