CA. Praveen Sharma GST Mitra

  Tech giant Google on May 11 said that Google Pay users in the United States can now send money to GPay users in India and Singapore. For this move, the American multinational technology company has partnered with Western Union and Wise. Both the firms have integrated their services into Google Pay. With this new approach, it is the first time that cross-border payments firms have inked such a deal. Google is also planning to expand the initiative worldwide by the end of the year. "As we do with a number of Google products, we will test, learn, and iterate and then start scaling," According to the partnership, Wise will extend the support in over 80 countries, while Western Union will power cross-border payments on Google Pay in over 200 countries. In the transactional process, when a Google Pay user in the US will attempt to send money to someone in India or Singapore, he or she will be informed about the exact amount that the recipient will receive. Following this, the sen...

  Indian market snaps 4-day winning streak and closed lower on Tuesday. The Nifty50 managed to hold on to 14850 while the Sensex saw a downtick of more than 300 points. Sectorally, buying was seen in utilities, oil & gas, public sector, power, and infrastructure stocks while selling was seen in metals, finance, banks, and IT stocks. Stocks that were in focus included Praj Industries which rose over 4 percent, SpiceJet rallied more than 9 percent, and BHEL gained 11 percent on Tuesday. This counter appears to have ended its bear market which was in progress from the highs of 271 registered in the year 2007, with a low of 43 made in March 2020. Since then it turned out to be a 9-bagger with a vertical up move. Moreover, in the last two trading sessions, it has sharply moved from the lows of 272 to 351 levels. This sharp rise shall make this counter vulnerable for profit-taking at any point in time. Interestingly, multiple channel breakouts on the daily charts are also pointing to...

  Gold along with other commodities was able to ride the reflation trade higher for the majority of the last week, resulting in spot prices trading well above $1800 per troy ounce and at a 10-week high. Our regular market wrap appeared to be reviewing a fairly uneventful week in terms of market news and macro results, before April's Jobs Report, which revealed a historic disappointment for investors. Yields were already struggling a bit since the past few weeks, US 10-year was held below 1.6 percent all week. After months of sluggish trading, gold prices exploded. Following the spectacular 9,16,000 jobs creation announced in March (revised to 7,70,000 in this report), many had expected another blockbuster NFP for last month, extending the theme of a runway economy, spiralling inflation, and the need for Federal Reserve tapering of the easy money that had fueled markets through the pandemic. Each piece of the jigsaw had its own trade setup, and the April NFP essentially ripped them ...

  FIIs have been consistent sellers since early April having sold equity worth Rs 16,500 crore during April 1 and May 7. They have been selling in India due to the COVID second wave concerns and moving to safer markets like South Korea and Taiwan, Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said in an interview with Moneycontrol’s Kshitij Anand. Edited excerpts: Q) A volatile week but bulls remained in control of D-Street pushing Nifty50 back above 14,800 levels. What led to the price action? A) Bulls have been in control during the last week, in spite of a flood of negative news on the pandemic front. The market has been surprisingly resilient and consolidating around Nifty 14,800 levels. This resilience is surprising since we know that Q1 FY22 GDP and earnings growth will be impacted by the lockdowns, curfews, and restrictions on economic activity. The market’s logic is that the second wave that has triggered this lockdown will peak around mid-May ...

  Supportive factors such as positive global cues, strong results from India Inc., healthy economic data and RBI's policy measures to support the economy helped market participants keep the concerns around rising COVID-19 cases at bay. India has been recording around 4 lakh new COVID cases on a daily basis amid a second wave. The benchmark indices climbed above crucial psychological levels in the week gone by. The S&P BSE Sensex closed above 49,000 while the Nifty50 managed to reclaim 14,800. The S&P BSE Sensex rose 0.87 percent while the Nifty50 climbed 1.31 percent for the week ended April 7. In comparison, S&P BSE Midcap index rose 1.4 percent and S&P BSE Smallcap index rallied 2.5 percent. Analysts attribute the rise in the broader markets to strong results posted by India Inc. in the small & midcap space. The Nifty-50 managed to climb the wall of worries and has posted weekly gains of ~1.3%. Indian markets are witnessing wild swings in the face of surging C...

  Indian market closed higher for the second consecutive day in a row on Thursday supported by positive global and vaccination drive although daily cases continued to rise. The measure announced by the Reserve Bank of India (RBI) on Wednesday also supported sentiment. Nifty50 reclaimed 14700 levels but the big resistance is still seen around 14800-15000 levels. Sectorally, buying was seen in metals, auto, IT, as well as oil & gas. On the broader markets front – the S&P BSE Midcap index rose 0.9 percent, and the S&P BSE Smallcap index rose 0.59 percent. Stocks that were in focus include Tata Steel, which hit a fresh 52-week high, Coforge, which rallied over 17 percent, and Aarti Drugs that rose above 11 percent on Thursday. On May 6, the stock made yet another all-time high of Rs 1129. This week so far, it has rallied over 7 percent. Post Rs 955 breakout, the stock consistently made fresh new highs. The strong uptrend wave after breakout clearly indicates that bulls are...

  Foreign institutional investors (FIIs), which have poured in Rs 2.7 lakh crore in the Indian stock markets in FY21, have consistently reduced stake in about 82 stocks. Over 30 of them have been giving multibagger returns since March 31, 2020. There are as many as 33 stocks which rose 100-500 percent since March 31, and in which FIIs consistently reduced stake in the last four quarters. Experts advise investors to book partial profits amid expensive valuations and fading hopes of a quick economic recovery. Stocks in which FIIs have trimmed stakes in FY21 include PC Jeweller, Agro Tech Foods, Vinati Organics, Gujarat Gas, Delta Corp, Shipping Corporation, JustDial, and Jaiprakash Associates. “In a rising market, FIIs are exiting companies impacted by the pandemic, or companies in which there is corporate restructuring or corporate governance issues or whose valuations look expensive,” Divam Sharma, Co-founder, Green Portfolio Management Services, told Moneycontrol. “We believe thes...

  India Gold MCX June futures trade higher on May 6 tracking positive trend in the international spot prices. Experts advise investors to buy the dip in the precious metal for a target of Rs 47,300 per 10 gm. On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.26 percent at Rs 47,122 for 10 grams at 0935 hours. May silver futures were trading 0.25 percent higher at Rs 69,796 a kilogram.  Gold and silver showed mixed trends on Wednesday as both the precious metals slipped from nine-week highs after an adverse comment of the U.S. Treasury Secretary on interest rates on Tuesday. Both the precious metals settled on a mixed note on Wednesday in the international markets. Gold June futures contract settled at $1784.30 per troy ounce Silver July futures contract settled at $26.52 per troy ounce. Both the precious metals were also settled on a mixed note in the domestic markets. “The rebound in the dollar index restricted gains in both the precious meta...

Policy measures announced by the Reserve Bank of India (RBI) on Wednesday will be a shot in the arm for the economy as well as companies in the Micro, Medium and Small Enterprises (MSMEs), financial and healthcare space. to tide over the second wave of COVID-19 cases. The market reversed losses and closed with handsome gains, despite a rise in COVID cases across the country. RBI’s relief measures came well in time, when the second wave of COVID-19 is gripping the country. Experts Moneycontrol spoke to are of the view that stocks from small finance banks (SFBs), housing finance banks (HFBs), medical equipment manufacturers, healthcare, banks, NBFCs, and hospital sectors are likely to benefit the most from the measures announced. Das announced the second tranche of buying of government securities (G-Secs) under the Government Securities Acquisition Programme (G-SAP) 1.0 to be conducted on May 20, 2021. “The announcement of the second tranche of bond buying to the tune of Rs 350 billion i...

On the other hand banks, financials and autos are expected to face pressure amidst the COVID and lockdown uncertainties. Metals are the only bright spot in this market where it will be interesting to see how the markets react post the quarterly results. Here is a list of stocks for the next 3-4 weeks: Bharti Airtel: Buy | LTP: Rs 552 | Target: Rs 600 | Stop Loss: Rs 530 After a long consolidation, the counter has given a breakout and cleared the immediate supply zone of Rs 540-550 levels. The daily charts is suggesting a visible higher high – higher low sequence while the Relative Strength Index has given a buy crossover with supportive volumes. GE Shipping: Buy | LTP: Rs 344 | Target: Rs 400 | Stop Loss: Rs 320 The stock has given a multi-year breakout above Rs 330-340 zone where the counter has faced resistance on multiple occasions in the last three years. The breakout is accompanied by huge delivery volumes witnessed over the past few trading sessions, along with buy crossover on t...

Nifty50 fell sharply on Monday morning amid weak Asian markets, large FII selling, and increased restrictions in many states. However, from the intraday low, the Nifty50 recovered more than two hundred points to end the day with the gains of three points at 14,634 levels Nifty50 closed above its 50-day EMA which is placed at 14,630 levels. It has also found support near 61.8% retracement of the entire upswing seen from 14,151 to 15,044. Therefore, we believe that even though the Nifty fell sharply on Friday and Monday morning, it has not violated important support levels on a closing basis. In the derivative segment, we have seen Puts being written at 14400-14500 levels, and the derivative data also indicates that 14,400-14,500 levels are likely to act as strong support going forward. We believe that Nifty50 is near the strong support range of 14,400-14,600 level and any correction from hereon should be utilized to accumulate long positions with the stop loss of 14,400 levels. On the h...

  Bulls remained in control for most part of the week pushing Sensex and Nifty above 50,000 and 15,000, respectively, except for the sharp selloff on Friday. The selling was triggered by exit poll results, delay in vaccination for 18-45 age group and concerns over economic recovery if COVID situation escalates. The smallcap index outperformed the benchmarks. Experts say the reason could be that the smaller companies are reporting better earnings The S&P BSE Sensex gave up gains but still closed 1.8 percent higher for the week while the Nifty50 closed with gains of 2.02 percent for the week ended April 30, compared to the 1.8 percent rise in the S&P BSE Midcap index, and over 3 percent rally in the S&P BSE Smallcap index. On the monthly basis, both Sensex and Nifty50 closed in the red while the S&P BSE Midcap index rose 0.65 percent, and the S&P BSE Smallcap index closed with gains of about 5 percent for the month of April. As many as 86 stocks in the S&P BSE...

  Fresh highs on the Nifty may be coming sooner than expected but 15,000-14,950 is likely to act as a strong hurdle, experts have said and that is what played out on April 29 morning as the index touched 15,000 but failed to hold on to it. The index has rallied more than 5 percent from the swing low of 14,151 recorded on April 22 in just four trading sessions to reclaim the 50-day simple moving average (SMA) placed at 14,799. Stable global cues, strong March quarter results from India Inc and expansion of the vaccination drive to include people above 18 years and the possibility of the second wave peaking in May-June helped the sentiment, experts say. In a strategy report, brokerage firm CLSA said drawing parallels with the second wave in 12 nations, along with using various parameters, it expects daily cases to peak in Maharashtra in May and June for the rest of the country. Maharashtra is the worst-hit state in India, reporting the highest daily and active cases. The state, which...

 

  Food delivery platform Zomato has filed its Draft Red Herring Prospectus (DRHP) with the market regulator today, kicking off one of India's most anticipated internet initial public offerings (IPOs) in a tumultuous year. According to the DRHP filed by Zomato, the company will offer equity shares aggregating up to Rs 8,250 crore (nearly $1.1 Billion). Of this, Rs 7,500 crore will be fresh issue, while Rs 750 crore will be an offer for sale for its existing investor Info Edge. Info Edge on April 27th said said it will sell shares worth Rs 750 crore in the upcoming initial public offering. The company's internal review of the IPO and other processes was completed on Sebi is likely to take about two weeks to review the DRHP and the final launch will depend on the market conditions, a source familiar with the development said. The move comes a few weeks after Zomato converted itself from a private company to a public limited company by amending its Memorandum of Association and re...