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Nifty slips below 7900; Tata Power, JSPL tank further

09:15

The News International Team

09:45am FII View

Neelkanth Mishra, Credit Suisse says with the market at an all-time high, many investors are turning cautious. “We, however, still believe risks to the market remain global, not local. India has primarily gained from a global expansion of P/E multiples. Elections just reduced tail risks,” he adds.

According to him, index EPS growth could pick up to 11-12 percent from 7-8 percent, and a 30 percent return for the index over two years is quite likely even if the investment cycle disappoints. “We highlight Maruti Suzuki, TCS, Axis Bank, HCL Technologies, Reliance Industries, ITC, Titan Company, IndusInd Bank, Shriram Transport and Emami as our picks,” says Mishra.

09:15am Equity benchmarks opened lower on Tuesday following consistent nervousness due to Supreme Court order on coal block allocation case. The Sensex fell 25.27 points to 26411.75 and the Nifty lost 12.60 points to 7893.70.

About 548 shares have advanced, 500 shares declined, and 43 shares are unchanged.

Tata Power shed another 4.1 percent and Jindal Steel lost 6 percent, in addition to 3.4 percent and 14 percent fall in previous session on coal block allocation scam.

BHEL, Sesa Sterlite, Tata Motors, M&M and PNB slipped 1-1.5 percent while Tata Steel, Coal India, HDFC, ITC and HUL gained 0.6-1.7 percent.

The Indian rupee opened flat at 60.52 per dollar on Tuesday as against previous day’s closing value of 60.56 a dollar.

Ashutosh Raina of HDFC Bank said, “The risk-on sentiment remains buoyant despite fluid geopolitical scenario. The increased FII flows into Indian equity and bond markets have resulted in rupee gaining and touching 60.50/dollar after recent losses. We expect the rupee to trade in the 60-61/dollar range.”

The euro stayed on the back foot, having extended its decline. Meanwhile, weakness in the euro helped  the dollar index, which remained close to its September 2013 peak of 82.671.

Globally, S&P 500 finally hit 2000 intraday but closed just shy of the psychological mark. Europe had a stellar rally with major indices up nearly two percent on hopes of further easing. Shares closed higher, boosted by hopes of further monetary steps to boost the economy. The German DAX and French CAC closed with around 2 percent gains. Asian markets were mixed.

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