INSUBCONTINENT EXCLUSIVE:
TCS, IndusInd Bank, Bandhan Bank, Delta Corp and Tata Elxsi were some of big companies that came out with December quarter earnings this
week.
Some of these companies posted healthy earnings, but market did not reward them
For instance, shares of TCS settled 2.44 per cent lower at Rs 1,842 on Friday
This is even as IT major posted its highest-ever third quarter profit
Revenues reported by largest IT player was also at highest level in last 14 quarters.
This is an indication that 2019 could be negative for
An expected slowdown in US could hurt these export-oriented companies and best might be behind us.
Other than IT, week also saw IndusInd
Bank reporting a 5 per cent (YoY) growth in third quarter profit
The expectations of higher growth did not materialise
With bank failing to provide fully for ILFS mess, its shares remained quite under pressure post results
Bandhan Bank too was hit by ILFS provisioning, but it took ILFS exposure as non-performing assets (NPAs)
The bank reported 10 per cent profit growth for quarter.
IT stalwart TCS posted profit growth of 24.1 per cent YoY while Tata Elxsi reported
between US and China concluded this week
It was extended to third day, which suggests its seriousness
The outcome of meeting has not been made public
This delay in disclosure of outcome of this closed-door meeting points to something unfavourable
Had it been positive, details would have been out by now.
No sooner are details are out, market will react sharply
Most likely, some disappointment is around corner.
Event of weekThe week saw yet another merger of a young bank and an NBFC -- Bandhan Bank
acquired Gruh Finance in an all-share deal
maintain, as per RBI requirement
IDFC Bank and Capital First completed their merger last month
A new order is emerging in merger of NBFCs and young banks
They are pooling war chests to create synergies to be able to compete against larger rivals.
Merging is more of a requirement in times of
crisis like this, as liquidity is drying up and margins are compressing
Many such mergers can be expected in this space
Incumbent private banks may face tough competition from merged entities.
Technical outlook Nifty50 has formed a Triangle Pattern, which
suggests that Mr Market is not certain in which direction it will move
Besides, major moving averages (200, 100 and 50 EMAs) are converging, which further confirms that market is in an indecisive phase and about
The likely move will be downwards, given structure of Triangle
We would advise a 's ell on rise' with a stop loss placed above 11,000 level on Nifty50.
Outlook for weekThe market is likely to stay
Investors would await details of trade talks between US and China
These deltails may influence financial markets worldover
Investors are advised to be on sidelines and book profits at higher levels
Buying at lower levels would be prudent, given uncertainties and muted corporate numbers.
Major results to look out for next week will be
those of Wipro, SBI Life Insurance, Zee Entertainment, ICICI Lombard, LT Infotech, AU Small Finance Bank, Mindtree and ICICI
Securities.
Nifty50 ended week 0.63 per cent higher at 10,794.
