The News International Team
11:45 am Buzzing: Investors continued to buy shares of Deepak Fertilisers and Petrochemicals Corporation (DFPCL) after its subsidiary formed joint venture for mining services in Australia. The stock gained as much as 4 percent intraday.
“Smartchem Technologies (STL), a subsidiary of DFPCL, as a part of its forward integration initiative, announced the launch of its overseas venture for Mining Services in Brisbane, Australia,” said India’s leading manufacturer of mining chemicals.
STL has set up Platinum Blasting Services Pty Ltd (Platinum), a joint venture with local Australian partners, who have vast experience in providing value added blasting services and operation expertise to the mining and explosives industries in Australia.
According to the press statement, STL will hold 65 percent while the local partners will hold 35 percent in the joint venture.
11:30 am Market outlook: The stellar run of Indian indices is likely to continue, believes Gautam Shah, associate director and technical analyst, JM Financial. In an interview to CNBC-TV18 he says this bull market is here to stay and we are still in the first leg. For September, 7850 seems to be the new base for the Nifty, but it could hit 10,700 by December 2015, he adds. He expects Nifty to find minor resistance at 8,250.
Going ahead, Nifty’s upmove will be led by Bank Nifty, which may hit 18,700-19,000 levels in the near-term. He sees 15,300-15,500 as support levels for the banking index. Shah recommends retail investors to bet on midcap stocks via mutual funds because the space is moving with good momentum. On specific stocks, he is positive on oil and gas major ONGC.
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Uptrend in the market continues with strong support from infra, oil & gas, metals and IT stocks. The Sensex is up 206.64 points or 0.76 percent at 27233.34 and the Nifty is up 55.95 points or 0.69 percent at 8142.80. About 1758 shares have advanced, 696 shares declined, and 79 shares are unchanged.
ONGC, Hindalco, HUL, Bajaj Auto and Sun Pharma are top gainers in the Sensex. Among the losers are Maruti, Tata Power, M&M and Tata Motors.
Goldman Sachs has raised Nifty’s target to 9,000 points for September 2015. Its previous target was 8,600 points for June 2015. Goldman says earnings sentiment remains positive for the overall market.
The Reserve Bank of India was seen buying dollars via state-run banks to prevent further appreciation in the rupee. State-run banks started buying dollars aggressively likely on behalf of the central bank when the rupee hit around 60.20 levels, the strongest since July 30, traders said. The rupee strengthened after U.S. monthly jobs data on Friday was weaker than expected.