The News International Team
12:20pm Market Expert
Girish Pai, Director, Claritas Research, says that from a short-term perspective, for the next 6 months, he is cautious on the markets, while on a medium term (2-3 years) he is bullish and expects a 15-20 percent returns.
On the policy side, he thinks the government is yet to deliver what the market was expecting in a run-up to the elections and beyond. “I think probably we need to give this government some more time,” Pai told CNBC-TV18.
On macro front, he expects GDP growth closer to 5 percent against the consensus of 6 percent for FY15. And thinks both monetary and fiscal policies will continue to be tight.
Pai is overweight on IT and pharma and is positive on domestic cyclicals on FY15-16E earnings expansion.
12:00pm Equity benchmarks as well as broader markets remained firm in noon trade after the WPI inflation eased to 5.19 percent in July from 5.43 percent in previous month.
The Sensex rose 115.90 points to 26034.85 and the Nifty advanced 25.45 points to 7765 while the BSE Midcap and Smallcap indices gained around half a percent. About 1237 shares have advanced, 1289 shares declined, and 109 shares are unchanged.
Shares of Tata Motors, Sesa Sterlite and Gail India topped the buying list, up more than 2 percent followed by HDFC Bank, ICICI Bank, Larsen and Toubro, Sun Pharma and Maruti Suzuki with 1-1.8 percent.
Aluminium major Hindalco Industries gained over a percent ahead of earnings today. Net profit is expected to fall by 14 percent but operating profit may jump 80 percent year-on-year to Rs 861 crore.
However, HDFC, Hero Motocorp and Bharti Airtel dropped 1-3 percent. State Bank of India, Tata Steel, Wipro, Bajaj Auto and Cipla declined 0.4-0.7 percent.